Budget Reappropriated Balances Berkeley Budget Closing Process

1
Budget Reappropriated Balances Berkeley
Budget Closing Process

• Session 54
• Monday, March 17 230-330
• HEUG 2003 Conference - Dallas

2
Barbara Barnett, Manager Wanda Mar, Principal
Budget Analyst Berkeley Integrated Budget
System Assistant Vice Chancellor,
Budget University of California, Berkeley

3
Berkeley Budget Closing ProcessAgenda

• UCB Environment
• Calculating The Balances
• Budget Accounting Rules
• Reappropriation Process
• Auditing the Process
• PeopleSoft Close
• Questions

4
Berkeley Budget Closing ProcessUCB Environment

• Financials 7.2
• Standard Budget Ledger
• Permanent Budget - Recurring
• Operating Budget - (Non-Recurring)
• Reappropriations Process
• Implemented July 2000
• Chart of Accounts -Operating Budget Actuals
• Account
• Fund
• Organization
• Program (expenditure accts only)
• Project (optional)
• Flexfield (optional -Department Defined Value)

5
Berkeley Budget Closing ProcessCalculating the
Balances

• Calculation of the BUDGET Reappropriation
• Budget Ledger Balances plus Actual Ledger
  Balances unused funds that are carried forward
  from the prior fiscal year
• Exception Contract and Grant Funds
  Inception-to-Date
• Cumulative balances are carried forward each
  year in both the Budget and Actuals Ledgers until
  the grant is closed

6
Berkeley Budget Closing ProcessCalculating the
Balances

• Challenge
• Create a flexible process
• compare the Budget and Actuals year end balances
• calculate the amount to be carried forward for
  use in the following fiscal year
• Retain an audit trail
• Audit trail easy to access and analyze pre and
  post close
• Solution
• Modified allocation process
• Use Period 998
• Bring the Actuals Balances into
• the Budget Ledger

7
Berkeley Budget Closing ProcessAccounting Rules

• Process Keys Fund (type) and Business Unit
• Process only applied to revenue and expenditure
  accounts
• Except for Capital Construction In Progress we do
  not assign budgets to asset and liability
  accounts
• Fund Balance Account (39000) - record offsets to
  the reappropriation adjustments as part of the
  allocation process
• Funds that are closed but have a ledger balance
  will get those balances reappropriated until the
  balance is cleared
• Collapse all revenue and expenditure balances
  into one expenditure Account (58100-Reappropriatio
  ns) for each FAU or Chartstring (Fund,
  Organization, Program, Project, Flexfield)
• Actuals Ledgers close first Actuals, Period 12
  must be closed before we start the budget
  reappropriation process begins
• Actuals Close by fund into a Fund Balance
  Accountcalled Prior Years Balance (30000)

8
Berkeley Budget Closing ProcessReappropriation
Process

• Variations within the Process
• Fund Numbers where revenue is owned by a single
  Department
• Auxiliary, Sales, Service, Gift
• Shared Use of Fund Number Across Campus
• State Appropriations, Off the Top, Registration
  Fees
• Zero Budget Balances No reappropriations for
  either expenditure or revenue funds
• Accruals- Benefit, Vacation, Lease
• Inception-to-Date Contracts Grants
• No reappropriation process, Budget and Actuals
  cumulative balances carried forward each year
  until contract or grant is closed.

9
Berkeley Budget Closing ProcessReappropriation
Process

• Fund
• Reappropriation
• Tree

Funds_owned_BY_DEPT
SHARED_FUNDS
10
Berkeley Budget Closing ProcessReappropriation
Process

• 1. Revenue Owned by single Dept

58100 Expenditure Acct
11
Berkeley Budget Closing ProcessReappropriation
Process

• Revenue ActualsPool Selection

Account Fr/To -4XXXX Revenue Account Range at
UCB Actual Ledger Balances (sum or period 0
-12) All Organization Codes Fund Process -Dept
Owns Fund per tree node Optional Chartfields
-Project Flexfield - All associated with
organization codes and funds selected
List Value Range Tree
12
Berkeley Budget Closing ProcessReappropriation
Process
Revenue ActualsTarget Selection
Journal Options Set up of journal line
(Processing Unit, Trans code special fields added
at UCB) Post Journals to Period 998 - One
journal per Fund Target Account Special
Account Program Switch - UCB doesnt assign
Program Codes to revenue accounts Suppress
Proj/Flex if checked Proj/Flexfield not added
to journal line. Reverse Pool Used only when
Pool is from Budget Ledger Offset Line
Balancing lines to fund balance account - UCB
never assigns Proj/Flexified codes to Fund
Balance accounts in Budget Ledgers
13
Berkeley Budget Closing ProcessReappropriation
Process

• Expenditure ActualsPool Selection

Account Fr/To -5XXXX Expenditure Account Range
at UCB Actual Ledger Balances (sum or period 0
-12) All Organization Codes Fund Process - Dept
Owns Fund per tree node Optional Chartfields
-Project Flexfield - All associated with
organization codes and funds selected Note
Sales/Service Final Step Flag (see slides 19 20)
Audit Program
List Value Range Tree
14
Berkeley Budget Closing ProcessReappropriation
Process
Expenditure ActualsTarget Selection
Journal Options Set up of journal line
(Processing Unit, Trans code special fields added
at UCB) Post Journals to Period 998 - One
journal per Fund Target Account Special
Account Program Switch - UCB doesnt assign
Program Codes to revenue accounts Suppress
Proj/Flex if checked Proj/Flexfield not added
to journal line. Reverse Pool Used only when
Pool is from Budget Ledger Offset Line
Balancing lines to fund balance account - UCB
never assigns Proj/Flexified codes to Fund
Balance accounts in Budget Ledgers
15
Berkeley Budget Closing ProcessReappropriation
Process
Expenditure BudgetPool Selection
Account Fr/To -5XXXX Expenditure Account Range
at UCB Actual Ledger Balances (sum or period 0
-12) All Organization Codes Fund Process - Dept
Owns Fund per tree node Optional Chartfields
-Project Flexfield - All associated with
organization codes and funds selected
List Value Range Tree
16
Berkeley Budget Closing ProcessReappropriation
Process
Expenditure BudgetTarget Selection
Journal Options Set up of journal line
(Processing Unit, Trans code special fields added
at UCB) Post Journals to Period 998 - One
journal per Fund Target Account Special
Account Program Switch - UCB doesnt assign
Program Codes to revenue accounts Suppress
Proj/Flex if checked Proj/Flexfield not added
to journal line. Reverse Pool Used only when
Pool is from Budget Ledger Offset Line
Reclassifying all expenditures to 58100. Program
and Dept/Org values from ledger line. Not
suppressing Project/Flex but including them in
journal.
17
Berkeley Budget Closing ProcessReappropriation
Process

• 2. Shared Use of Fund Number
• Revenue BalancesNo Reappropriations Calculated
• Revenue for these fund numbers are managed by
  Budget Office and General Accounting. Closely
  Monitor balances
• Budget Revenue Acct plus Actuals Revenue Acct
  Balances -ALWAYS EQUAL to ZERO

18
Berkeley Budget Closing ProcessReappropriation
Process

• 2. Shared Use of Fund Number cont.
• Expenditure Balances Only
• Screen Set up See Page 13-16 of Presentation
• Use Different Level 2 of Reappropriations Tree
  Shared Funds

19
Berkeley Budget Closing ProcessAuditing the
Process

• Bring All Balances into Period 998 Acct 58100

20
Berkeley Budget Closing Process

• Auditing the Process
• Budget and Actuals In Balance

• Actuals Ledger Closes to Special Fund Balance
  Acct 30000-Prior Year Balances Control Figure
• Budget Ledger Balance 39000-Fund Balance plus
  Actuals Ledger 30000-Prior Year Balance Zero
• Out-of-Balance Problems created by
• Revenue realized through fund balance missing
  either a Budget or a Financial
  Journal
• Department has failed to set up budget for
  their income fund.

21
Berkeley Budget Closing ProcessAuditing the
Process

• For Funds Owned by Departments Run Special
  Program
• Each Fund Assigned owner Org code on Fund
  Table
• Difference booked to this org code when
  out-of-balance
• For Funds Shared By Campus run special reports
  prepare a manual journal to correct

22
Berkeley Budget Closing ProcessAuditing the
Process
23
Berkeley Budget Closing ProcessAuditing the
Process
24
Berkeley Budget Closing ProcessPeopleSoft Close
Closing Rules Set
25
Berkeley Budget Closing ProcessPeopleSoft Close

• Close Process

Note Account Types all set to Balance Forward
26
Barbara Barnettbbarnett_at_uclink4.berkeley.edu
Wanda Marwandamar_at_uclink4.berkeley.eduHTTP//
HEUG.ORG (attendees may download HEUG2003
presentations from the archives at this location)
Berkeley Budget Closing ProcessQuestions