Fund Equity & Cost Center Verification (cont'd)

Purpose:

The reconciliation of department cost centers are needed to minimize the risk of unauthorized use of funds and to ensure that revenues are properly recorded. Therefore, entries in the PeopleSoft General Ledger (PSGL) must be monitored monthly. For this reason, MAPP has asked that each department develop procedures for monthly verification of each cost center in PSGL with departmental records to ensure accuracy and propriety of the entries.

References:

MAPP 05.04.02, SAM 03.G.01, SAM 03.G.03

Handouts:

• Reconciling Using Verification Worksheet
• Budget Prior Year Budgets and Expenses
• Screen Shots of FileMaker Pro Before and After Journal Entries
• Using Filters with Verification Reports

Procedures:

PT. I:

Step by Step Reconciliation Using VNet Administration Database

PT. II:

Cost Sharing

PT. III:

Maintaining PS Cost Centers

PT. IV:

Budget Request

PT. V:

Request to Budget New Revenue/Fund Balance

PT. VI:

Non-Payroll Correction

PT. VII:

List of Reports

PT. VIII:

Reviewing Fund Equity

Review and Responsibility:

• Responsible Party: Director, NSM Business Operations
• Review: Every two years, on or before August 31

Approval:

• Director, NSM Business Operations - Fred McGhee
• Dean, NSM - John Bear
• Date of Dean's Approval: 09/01/2008

II: Cost Sharing

On project cost centers where cost sharing is indicated, the reconciler must maintain an independent spreadsheet that is saved and printed each month to show the cost sharing requirements of the granting agency. Cost sharing is usually done on salary and equipment. For salary cost sharing, calculate the number of months cost sharing required and the % FTE. Record the amount on a spreadsheet for each of the months for the total cost-sharing amount. Remind PI and payroll to include on monthly time sheet. For equipment cost sharing, make sure that equipment charged to the grant is charged in the proportion indicated in the cost sharing agreement. Record the amount cost shared and the cost center shared with on cost sharing spreadsheet and print and file with reconciliation as needed.

III: Maintaining PS Cost Centers

• A list of all departmental cost centers, with their PS and department balance and the name of the responsible PI is maintained and updated by the department using the following PS reports and query:
  • UGL01016
  • UGL01064
  • UGL01065
  • UHS_CC_LIST
  • UHS_CC_REVEXP
• Grant and contract project cost centers are entered into the department database using the Notice of Award NOA. The notice of award provides the guidelines set by the granting agency and by the A21 for administrating or reconciling the grant.
• Reports are printed for project cost centers each month to ensure that expenditures are not posted to closed out projects and to determine which project will end in order to begin the close out process.
• Cost centers shared by more than one PI are given sub-cost center values on the department database to track expenditures and balances by PI.
• All projects require the signature of the PI or his/her designee in order to incur expenditures. A list of the PI designees with the PI authorizing signature is maintained and updated yearly by the DBA.
• Because the department is responsible for signing and monitoring spending on the project cost center, a copy of the guidelines from the sponsoring agency should be kept by reconcilers for easy reference on allowable and non-allowed costs (see matrix of allowable-unallowable cost on projects).
• Program cost centers are budget once per year in PCBUD and rolled over to PS to allow spending in the current Fiscal Year.
• Programs not budgeted or programs with negative budget balances can be budget or re-budgeted during the fiscal year using the request to budget fund balance or request to budget new revenue.
• Funds can also be transferred from certain program cost center to another see attached matrix) or between budget nodes using the Budget transfer form to allow spending.
• The UGL1064 should be reviewed as needed to determine which programs need budget adjustments.

IV: Budget Request

Budget transfers are done to move funding from one budget node to another within the same cost center or between different cost center. When used with a journal form (in most case this is done by the budget office) it moves the equity from the one cost center to another as well. Budget Transfer:

1. Print the cost center’s UGL1074.1 (Summary) report to determine how much budget is needed and/or how much is available.
2. Obtain the budget transfer form from the NSM Employee Information Source web page.
3. Complete all sections of the document, and give it a file name beginning with your department code.
4. In the justification box indicate the type of transfer being requested. For example "Move budget from M & O to capital outlay to allow for spending".
5. On the column labeled “Ledger” select “ORG” the department is not allowed to budget projects).
6. Fill in the cost center values, the decreasing and increasing budget amount, and the account codes you wish to move budget to and from.
7. Rounded figures must be used for amount.
8. If budgeting salary budget node you must list the position number in the description cell.
9. On the second line of the BAR, fill in the values of the cost center you are moving the budget to. If budgeting between budget nodes in the same cost center, enter the same cost center values. If moving budget from one cost center to another, enter the second cost center values.
10. Your total increase and total decrease must be equal to zero.
11. Save and print your BAR. Obtain signatures from the DBA and College Administrator (Fred McGhee) and send electronic and paper copy to the budget office.
12. Transfers between certain cost centers are not allowed (see attached list of allowable cost transfers).