91社区
Many of the University鈥檚 spendable funds receive budgets on a 鈥楥ash basis鈥�. The activity relating to these funds are difficult to quantify at the onset of each year and therefore an annual budget exercise is not appropriate. The availability of funds is determined as the year progresses. Spending power is contingent on receipt of revenue.
An automated process to increase revenue and expenditure budgets as revenue is realized has been implemented for funds falling into the second category. This process, entitled 鈥淎uto Budget for Revenue,鈥� allows fund holders and administrators to view at a glance the current status and spending power of funds that function on a cash basis.
Which funds receive 鈥楢uto Budget from Revenue鈥�?
This process will only kick-in when a fund is flagged as 鈥淎uto鈥� in the Budget for Revenue field of FZMFUND (the 91社区 Fund Option form linked from FTMFUND).
Generally, unrestricted fund type 1C, restricted funds not linked to grants, and trust funds 8B, 8C, 8D, 8E, and 8F are flagged as 鈥淎uto鈥� however judgment is applied by Financial Services on a fund-by-fund basis.
Should a fund type change happen in the middle of a year, the evening that the change took place, the system will update the budgets (both revenue & expenses) back to the start of the fiscal year (May 1st).
Operating funds 1A and 1B, and any fund linked to a grant can never be subject to auto budget transactions.
How is the 鈥楢uto Budget from Revenue鈥� calculated?
鈥淎uto Budget for Revenue鈥� is run on a nightly basis from Monday to Friday. The process breakdown is as follows:
- Finds all funds with a budget flag = Auto on FZMFUND, excluding any with a status of 鈥榠nactive鈥� or 鈥榯erminated.鈥�
- For every FOAPAL combination including a revenue account, calculate the variance between budget and actuals.
- Dismiss entries where variance equals zero, and exclude account 500122 since manual budgets are established for any income distributed from endowments.
- Post a self-balancing (i.e. the net budget for the fund is unchanged) BD04 journal, under a separate document number for each fund, as follows:
Revenue side:
- Increase/decrease revenue account budget to match actual, using the exact same FOAPAL.
- The transaction description is 鈥淎uto Budget from Revenue.鈥�
Expense side:
- Increase/decrease expense account budget as the offset
- The Fund code is the same; the Org and Prog are taken from the FTMFUND defaults; the Activity and Location will be 000000.
- The transaction description is 鈥淥ffset: Budget from Revenue.鈥�
- The expense Account is derived from the Offset Budget Account field on FZMFUND. It is populated by default as 700012 (miscellaneous).
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When is the 鈥楢uto Budget from Revenue鈥� process run?
- The nightly process will generate transactions for any newly flagged funds, but will not reverse prior budget transactions for funds that had the 鈥淎uto鈥� flag removed. Manual budget entries would be required to remove any budget created from a previous process run.
- Automatic postings will occur in the same month as the original revenue, even when more than one fiscal period (month) is open.
- The process will only calculate and post variances for the earliest open month. When the month is closed, the process will then catch-up for the next earliest open month. For example, until April is closed, May transactions will not be considered.
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Auto Budget from Revenue Illustration
Fund A has Budget for Revenue flag = Auto. The Auto Budget from Revenue process was run last night.
Today鈥檚 standing of Fund A:
| Fund | Org | Account | Prog | Activity | Location | Budget | YTD Activity | Commitments | Balance |
|---|---|---|---|---|---|---|---|---|---|
| 270728 | 00287 | 500001 | 5125 | 000000 | 000000 | 0.00 | -5,000.00 | 0.00 | 5,000.00 |
| 270728 | 00287 | 500006 | 5125 | 001234 | 000000 | -2,000.00 | -1,000.00 | 0.00 | -1,000.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 567890 | -5,000.00 | -12,000 | 0.00 | 7,000.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 000000 | 0.00 | -1,000.00 | 0.00 | 1,000.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 000000 | 0.00 | -3,400.00 | 0.00 | 3,400.00 |
| 270728 | 00287 | 700001 | 5125 | 000000 | 000000 | 500.00 | 0.00 | 0.00 | 500.00 |
| 270728 | 00287 | 700010 | 5125 | 001234 | 000000 | 0.00 | 3,000.00 | 0.00 | -3,000.00 |
| 270728 | 00287 | 700012 | 5125 | 000000 | 000000 | 6,500.00 | 20,000.00 | 1,000.00 | -14,500.00 |
| 270728 | 00287 | 700421 | 5125 | 000000 | 000000 | 3,000.00 | 0.00 | 0.00 | 3000.00 |
| Net Total | 听 | 听 | 听 | 听 | 听 | 3,000.00 | 600.00 | 1,000.00 | 1,400.00 |
One would conclude that Fund A received revenue from sales, donations and endowment today, as well as had grant revenue removed.
When the 鈥淎uto Budget from Revenue鈥� Process is run tonight, the following transactions are posted:
Increase听听听听听听听 500001 (sales revenue)听听听听听听听听听听听听听听听听听听听听听听听 $5,000.00
Decrease听听听听听听 500006 (grant revenue)听听听听听听听听听听听听听听听听听听听听听听 $1,000.00
Increase听听听听听听听 500009 (donation revenue)听听听听听听听听听听听听听听听听听 $8,000.00
Increase听听听听听听听 500009 (donation revenue)听听听听听听听听听听听听听听听听听 $3,400.00
Increase听听听听听听听 700012 (miscellaneous expense)听听听听听听 $15,400.00
Therefore, the revised standing of Fund A is:
| Fund | Org | Account | Prog | Activity | Location | Budget | YTD Activity | Commitments | Balance |
|---|---|---|---|---|---|---|---|---|---|
| 270728 | 00287 | 500001 | 5125 | 000000 | 000000 | -5,000.00 | -5,000.00 | 0.00 | 0.00 |
| 270728 | 00287 | 500009 | 5125 | 001234 | 000000 | -1,000.00 | -1,000.00 | 0.00 | 0.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 567890 | -12,000.00 | -12,000.00 | 0.00 | 0.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 000000 | -1,000.00 | -1,000.00 | 0.00 | 0.00 |
| 270728 | 00287 | 500009 | 5125 | 000000 | 000000 | -3,400.00 | -3,400.00 | 0.00 | 0.00 |
| 270728 | 00287 | 700001 | 5125 | 000000 | 000000 | 500.00 | 0.00 | 0.00 | 500.00 |
| 270728 | 00287 | 700010 | 5125 | 001234 | 000000 | 0.00 | 3,000.00 | 0.00 | -3,000.00 |
| 270728 | 00287 | 700012 | 5125 | 000000 | 000000 | 21,900.00 | 20,000.00 | 1,000.00 | 900.00 |
| 270728 | 00287 | 700421 | 5125 | 000000 | 000000 | 3,000.00 | 0.00 | 0.00 | 3,000.00 |
| Net Total | 听 | 听 | 听 | 听 | 听 | 3,000.00 | 600.00 | 1,000.00 | 1,400.00 |
The impact:
- The Net Total for the fund remains the same
- The balance for all revenue accounts = zero
- The Spending Power (sum of labour/expense/transfer balances) has increased to reflect new monies received.
- The Available Balance equals the Spending Power, therefore, you can view the fund on FGIBDST with the 鈥業nclude Revenue Accounts鈥� unchecked and the total available balance will be calculated for you.
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