Budget Update

Budget Update
October 15, 2014
Budget Planning and Development:
Mary Simon, Senior Director
Tammy Anthony, Assistant Director
Elizabeth Bay, Senior Budget Analyst
Brenda Clarke, Senior Budget Analyst
FMS Commitment Control Update
 Budget Overview
 Reconciling Items / Issues Outstanding
 Detail Accounting Period vs. Detail Budget Period
 Educational & General Balances FY 2014
 Balance Forwards
 Associated Revenues
HCM Commitment Accounting Update
 Position Funding
 Budgetary Funding Tab
 Encumbrances
 Upcoming Training Classes
 Q&A
Budget Overview
Reconciling Items / Issues Outstanding FY 2014
Transition to the New Fiscal Year resulted in transactions being ‘budget
checked’ against Budget Year 2014 versus Budget Year 2015.
Majority of journals include Central Office processing. Examples include
retro adjustments, automatic reversal adjustments and copied journal
In addition, Purchasing has been working to resolve dis-encumbrance
issues related to processing and/or transactions crossing fiscal years.
An Oracle issue related to Travel Encumbrances was identified and has
been escalated to UT Share system support.
Transactions with incorrect budget date are impacting Budget Overview Detail “Budget” Period only. For purposes of reconciling, Departments
should continue to utilize Detail Accounting Period.
Central Offices - Accounting, Budget, Disbursements, Purchasing - are
working with the consultants to resolve the outstanding issues.
Budget Overview
Detail Accounting Period vs. Detail Budget Period
 As a reminder, for purposes of reconciling accounts, Departments
should continue to utilize Detail Accounting Period
Educational & General Balances
FY 2014
 Budget Office provided year end balance reports to Primary
Financial Area Reps for processing budget transfers
 E&G remaining balances were transferred, as appropriate
 Any E&G negative balances were addressed and cleared
 Based on a final review, remaining balances will be transferred
 Certain E&G cost center balances will carry balances forward into
the new fiscal year such as, VP reserves, GIT & lab fees
 Special Items & Research Development Funding will carry E&G
balances forward into the new fiscal year; however, these funds
must be fully expended next year as FY 2015 is the 2nd year of the
Balance Forwards
Prior to recording Balance Forwards, Budget Office will
adjust spending authority to match Actual Revenues
recorded for FY 2014.
Once balances are correctly reflected in Commitment
Control, a two part budget journal entry will record
balance forward amounts:
Part I: Balances “before encumbrances” will be recorded by
cost center
Part II: Balances to cover outstanding encumbrances being
brought forward from FY 2014 to FY 2015 by cost center
Controlled Option will be turned on after year end
balances are rolled forward
Associated Revenues
Provides automatic spending authority for cost centers
with no Original Budgets
All active Gift and Agency funds have been associated
for FY 2015
Revenue Association is found on Budget Overview Detail “Budget” Period for Commitment Control. It will
not be found on the Detail Accounting Period.
Please contact [email protected] for additional
cost centers to be associated
HCM Commitment Accounting Update
Commitment Accounting Updates
And Position Funding
DBT (Department Budget Table)
• Position Funding
Effective date of DBT for initial funding on new positions should match position effective date
Future effective funding changes work “Best”!
Retro funding changes – There are many lessons we are learning!
• Effective dating DBT’s ends the current funding by assigning the new
funding with the new effective date.
• Funding Type: Non-Grant or Grant is used for approval routing
• The DBT is the funding source for each payroll process
• The DBT will be the funding source for the encumbrance process
• Key things to remember
Look for our “Key Announcements”… Great source of information
Without funding on a paid position the payroll process cannot be completed
No DBT required on an existing position if the funding is not changing
DBT does not include job or employee data
Commitment Accounting Updates
And Position Funding
Initial Encumbrance process is “Pending Further Testing”
The Plan is as follows:
All regular salaried filled positions will be encumbered
Vacant and hourly paid positions will not be encumbered
Encumbrance is by Fiscal Year and/or Contract Pay
A nightly process will run to capture daily DBT funding changes
Fringe Benefit encumbrances will be implemented at a later date
Details of the encumbrances
Salary encumbrances in A1000 and A2000 budgetary accounts
Liquidation of salary encumbrances after each pay cycle and GL posting
Queries/Reports will be developed
Commitment Accounting Updates
And Position Funding
Budgetary Funding Tab in the DBT
• This section of the DBT is “Information Only” on the position – not the
person (i.e. Job)
• This information is to be used in the Annual Budget Process and for
budget reporting throughout the year.
• We are currently validating the FY2015 Budgeted Amount and Funding
Cost Center loaded for permanent positions that converted in May.
• We will learn more on how this information can be used as we move into
our next budget cycle.
Upcoming Training Classes
“Managing Departmental Expense & Revenue Budgets”
Next Class is November 18, 2014
8:30–10:30 am Downtown FS 3.412
Contact [email protected]
“Funding Positions” Class
Next Class is November 14, 2014
1:30-3:30 pm in NPB 1.412
Contact [email protected]
Our goal always is a successful “funding experience” for all!

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