AUBURN UNIVERSITY BUDGETING & ACCOUNTING

Financial Management

AU BUDGETING & ACCOUNTING Objectives

Financial overview of AU Business Office introduction Controllers office and account structure Administrative systems, Banner Finance Budget Services and the budget process

AU BUDGETING & ACCOUNTING What is the Business Office?

Controllers Office (Financial Reporting & Property Services) Mgmt Reporting Budget Services Student Financial Services (formerly Bursar and Financial Aid) Procurement & Payment Services (formerly Accts Payable & Purchasing) Contracts & Grants Accounting Payroll & Employee Benefits Information Systems Support

Associate VP for Business & Finance Marcie Smith

Exec Sec Sandra Bonney

Director Budget Services Teresa Vest Exec Dir Procurement & Payment Services
Shawn Corrigan Asmuth

Controller Amy Douglas

Exec Dir Payroll & Employee Benefits Ronnie Herring Exec Dir Student Financial Services Mike Reynolds Director Information Systems Support Michael Miller

Director Contracts & Grants Accounting Sheila Duffield Director Management Accounting Cindy Selman

Procurement & Payment Services

Responsibilities
Procurement of and payment for acquired goods and services, including compliance, proper accounting and records retention Manage purchasing card program Promulgate policies associated with procurement & payment Compliance with IRS 1099 tax laws and state escheat laws

Major Projects
Enhanced control and fraud monitoring Electronic workflow and imaging of financial documents

Challenges
Decentralized buying and receiving Regulatory climate

Payroll and Employee Benefits

Responsibilities
Ensure the timely and accurate pay and all accounting of payroll & benefits for all AU employees Manage all benefit programs

Major projects
Benefit analysis and wellness program Post retirement actuarial update

Challenges
Cost containment of health insurance program Decentralized time entry

Contracts and Grants Accounting

Responsibilities
Financial reporting and sponsor billing for all sponsored agreements Oversees federal, state and other compliance related to financial aspects of sponsored agreements Facilities & Administrative rate development and recovery distribution

Major Projects
Effort certification automate & improve compliance Development of Banner reporting

Challenges
Keeping abreast of regulatory climate Maintaining adequate compliance in decentralized environment

Student Financial Services

Responsibilities
Manage student financial aid program Bill and collect all student tuition and fees Record revenue received by AU Maintain student billing system

Major Projects
Implementation of Banner student info system Integration of activities of billing/receiving with student financial aid to assure optimal cost savings and efficiencies

Challenges
Maintain complex tuition/fee structure Maintain compliance with constantly changing Title IV Higher Education Regulations

Management Accounting
Responsibilities
Provide university-wide management reports and analysis Assist units in preparing management reports Preparation and analysis of reserve reporting Oversee capital budgeting, deferred maintenance and debt needs

Major Projects
College/School needs assessment Development of management reporting and presentation to campus constituents

Challenges
Defining, creating, automating management reports to meet all needs Dissemination of information in formats acceptable to deans, department heads, financial managers, etc.

Information Systems Support

Responsibilities
Programming, tech support for finance and human resource systems Desktop/server support for Business Office & other administrative units Liaison with central information technology Production support data entry, print, imaging financial documents

Major Projects
Banner reporting Budget development system Converting AS400 data and systems

Challenges
Prioritizing to meet needs of all users in current climate of new systems Constantly changing IT environment

Banner Project Office

Responsibilities
Coordinate activities of users, information technology, outside consultants, steering and executive committees in implementation Recommend policy changes and software purchases to senior administration Manage project budget

Major Projects
Completing student implementation for Fall 07 roll-out Implementation of workflow and executive reporting

Challenges
Prioritization of competing demands for technical resources Coordination of upgrades in a relational database environment

AU BUDGETING & ACCOUNTING Other Financial Services

Treasury Services Development Accounting Alumni Accounting Risk Management & Safety Internal Audit

AU ACCOUNTING & BUDGETING Mission Statement

The mission of the Business Office is to provide leadership in the development, implementation, and continuous improvement of the business and financial services essential for Auburn University to pursue its mission of teaching, research, and outreach

AU ACCOUNTING & BUDGETING

Service is important Compliance is important Constant balancing act to do both

AU ACCOUNTING & BUDGETING Service and Compliance

Increased demands for financial information Enhanced technology Federal Regulatory Climate - IRS, Federal Sponsors, Dept of Education, Cost Accounting Standards State regulations travel, bid law, public works law Governmental Accounting Standards and Financial Accounting Standards

AU ACCOUNTING & BUDGETING World Wide Web Information

Description of each business office Financial Policies & Procedures
Information can be found at http://www.auburn.edu/administration/business _office/ OR on Banner site at http://auaccess.auburn.edu (will require user ID to log into Banner)

Controllers Office
Role of Controllers Office

AU ACCOUNTING & BUDGETING

Controllers Office Our Customers:
Federal and State regulatory agencies External auditors Bond Agents and banks Other Institutions for benchmarking Internal Users - Presidents Office, Vice Presidents, Deans, Directors and Department Heads and YOU!

AU ACCOUNTING & BUDGETING

Controllers Office
Responsibilities:
Preparing annual, audited, published Financial Statements Coordinate Financial Audit and A-133 Audit of Federal Funds, NCAA Audit Accounting for University Assets
Cash - monthly bank reconciliations Property, Plant and Equipment-Reported in General Ledger Capitalized Equipment Recorded in Fixed Asset Module

AU ACCOUNTING & BUDGETING

Controllers Office Responsibilities continued:
Process Bond Payments and reconcile accounts related to debt service, ratio analysis Preparation of various tax returns including 990T, sales tax and excise tax Prepare Journal Entries for transfers and corrections, review ITVs and DECs, analyze accounts, do special projects Implement service centers policies Key role in Banner Finance System

FINANCIAL SYSTEMS

AU ACCOUNTING & BUDGETING Banner Basics

Banner Project Financial System
October 1, 2005 implementation Includes budget system, finance system, payables, purchasing, fixed assets Training ongoing (HRD classes offered each semester), Banner Boost

Human Resource System July 1, 2006 implementation (includes payroll, leave information) Student Info System (Billing/Receivables)
July 1, 2007

AU ACCOUNTING & BUDGETING

Banner Basics
Access to systems AU ACCESS is web-based with a single sign-on Two types of access Banner Self-Service and Banner Admin The AU Access portal provides calendar, announcements, shortcuts to processing, policies and procedures, and other information Many transactions can be processed electronically purchase requisitions, budget, etc. We are working toward being able to process imaged documents

AU ACCOUNTING & BUDGETING

Finance System
Accumulation of hundreds of thousands of transactions in various funds, orgs, accounts and programs allows AU to meet the reporting needs for
State of Alabama Annual Financial report Federal funds audit And many more.

AU ACCOUNTING & BUDGETING

More Finance System

Banner Finance
Includes an accounts payable and purchasing function Grants module for sponsored programs/project tracking Fixed assets system for recording depreciation/Detail of Capitalized Assets Ability to download financial information into spreadsheets for additional reporting and monitoring

Monthly and other reports delivered electronically via E-Print. Other report options coming through ARGOS reporting

AU ACCOUNTING & BUDGETING

More Finance System

All financial information is captured in unique accounts (Now referred to as FOAPs in Banner) Where the money comes from, restrictions on the use placed by outsiders and how it is spent all influence the classification of dollars in the Finance System Allows for budgeting, reporting and tracking resources received and used

AU ACCOUNTING & BUDGETING

WHAT IS A FOAP?
Fund assets, liabilities and fund balances identified by type (ex. Unrestricted base budget funds, plant funds, restricted sponsored project fund) Org revenue, expenditures and budget for a unique organizational unit. Identifies Who is spending the funds. Account five digits which identifies What type of revenue, expense, asset, liability, etc. Program identifies the function or purpose of expense (instruction, research, etc.) AND A-21 classification of expense (organized research, general administration, etc.)

AU ACCOUNTING & BUDGETING

Example
Fund
101001

Org
113600

Account
70935

Program
7000 Institutional Support expense

Unrestricted Procurement & Supplies Base Budget Payment Services

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Self Service Banner

Uses traditional web browser Easy to use and understand Transaction processing
Use for purchase requisitions and budget transfers Approvals routed electronically

Query
Balances for year-to-date transactions and budgets available Only operating ledger revenues, expenditures and budgets

Overall, limited functionality

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Banner Admin
Special navigation is required training is critical Expanded functionality
Vendor query Fund (General ledger) information Project basis accounts construction and grant accounts gives project-to-date expenses and revenues Query and reports downloading available

Auburn University Budgeting

Role of Budget Services AU Budget Process

AU ACCOUNTING & BUDGETING Budget Services

Auburn Universitys annual financial plan is expressed as an annual budget The office of Budget Services is charged with the responsibility for the complete Auburn University budget, including the systems used to develop and track budgets, for all divisions

AU ACCOUNTING & BUDGETING Budget Process

Budget Advisory Committee Board of Trustees - tuition increases Legislature - passes appropriation in April Budget Preparation - usually late June through September Currently using online budget development system created by users and programmers at AU Typically an incremental process

AU ACCOUNTING & BUDGETING Budget Process

Individual colleges/schools and VP areas use the combination of a Banner product, Salary Planner, and an in-house developed system called Stripes to prepare the annual budget. Budget Services balances and summarizes the budgets for presentation and approval to the Board of Trustees New salaries are loaded into the Human Resource System Total budgets are uploaded into the Finance system New tools were utilized starting in the FY08 budget year

AU ACCOUNTING & BUDGETING Budget Year

October 1 is the beginning of the fiscal year September 30 is the end of the fiscal year

AU ACCOUNTING & BUDGETING Budget Changes

Budgets can be modified throughout the year by processing budget changes online in the Banner System (AU04) Instructions to web-based system found on the Budget Office website: www.auburn.edu/budget

AU ACCOUNTING & BUDGETING Budget Carryover

Unused Budget can be carried forward and spent in future fiscal years Provides incentive More efficient/effective use of funds

AU ACCOUNTING & BUDGETING Budget Carryover

Reserve reporting is done annually to summarize carryover and resources available to each unit Units are encouraged to use existing resources for one-time needs

MORE CHANGES
Electronic pay advices Internal control emphasis (SAS 112) Enhanced reports Imaging/workflow New policies signature authority, cellphone, etc.