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EC Resources Boulder Links
PBA
Expenditure Control page Fact Sheet used in May 2007 Town Meeting for Fund 10 & 34 Amount Available how the "amount available" is calculated Overview one-page includes much of the information here JE Status description of the resource checks & JE statuses Flowchart details the journal entry resource check process Override guidance for over- riding Expenditure Control Manual Encumbrances now need approval September 2006 article page 3 intro to EC
System Links Expenditure Control University Controller's comprehensive web FAQ details on select Expenditure Control topics Finance Procedural Statement articulates EC's key concepts Resource Check Matrix has resource check & re-check times, email notices, JE status Approved Subsystems exempt from Expenditure Control Learning Resources Step-by-Steps and other learning tools PowerPoint Presentation with transaction examples |
Expenditure Control (EC)Expenditure Control Suspended Until Further Notice On 5/30/08, the OUC issued a User Alert advising that Expenditure Control edits in the Finance System were suspended pending improvements to address operating inefficiencies. For now, this means transactions will not be stopped by the Finance System even if it creates a deficit. Obviously, email notifications will no longer be sent for failed transactions. What this does not mean is that deficits are okay or that nobody is monitoring. As always, fiscal principals and managers should review their FOPPS regularly and allocate resources appropriately to avoid deficits. ABS and the Budget Office will continue to monitor for deficits and work with departments to employ appropriate corrective action. Go to Expenditure Control Overview Phase 3: Funds 20, 28, & 29 October 2008 As in previous EC phases, EC attributes will be assigned to existing FOPPS and uploaded to the Finance System before Phase 3 begins in October 2008. The paramount goal is to choose attributes that promote uninterrupted operations and retain the ability to fix unforeseen problems. The Budget Office (PBA) analyzed Funds 20, 28, and 29 to compare available resource balances based on DAB (aggregated at the org level using budget) vs. DAN (org level using net assets). A favorable available resource balance resulted more often when calculated using DAB rather than DAN. This was especially true with Funds 20 & 28. Default attributes for Funds 20, 28, & 29 will be DAB & BL Based on the data and analysis, the Boulder campus defaults for Funds 20, 28, and 29 will be an Expenditure Control Rule of DAB (aggregated at the org level for all expenses) and an Available Resource Basis of BL (expense budget). However, units will be able to use PA (aggregated at the Program level) or DAN rather than the DAB default if deemed more appropriate for the particular operation. An annual rolling forward of the budgets similar to the General Fund for Funds 20 and 29 is now an option. For Fund 28, ISC Rate Sheets can now be used to calculate both rates and budgets on a single worksheet to ease unit work effort. Complete auxiliary budget instructions are on the PBA website under Budget Development. Budget were due 6/30/08. If you need help with EC attribute decisions or have questions, feel free to email the Budget Office for assistance: ucb.budget@colorado.edu Phase 2: Funds 10 & 34 October 2007 Expenditure Control (EC) Phase 2 began October 8, 2007 and includes Funds 10 and 34. This involves a majority of the campus operations. See the available resource calculations. Fund 100 The following are the primary items to take into account.
Budget Alignment PSLites new Expenditure Control report is a tool that gives a high level view to see emerging issues before they become problems.* SPOs SPO encumbrances demand extra attention at set up and during their life. See SPO tips below. ID Revenue/Transfers In EC calculations for fund 10 do not include ID Revenue or Transfers In because the Resource Basis is expense budget and only looks for that. In order to count, ID Revenue and Transfers In must have a corresponding BJE to create budget. This way it gets included as a resource in the EC calculation. The Budget Office has put together instructions and is ready to assist. The calculation for EC in Find 10 is total expense budget less expenditures, transfers out, and encumbrances. EC in Fund 10 will be at the organization level using Budget Ledger. Transactions from payroll, BRS, ACARD, and approved campus subsystems (such as Facilities Management, Telecom, and Mailing Services) process regardless of available resources. In addition to regular reports* that are available, you can monitor how your area is performing under EC in Fund 10 by running a new report that is available in PSLite. The location of the report is in the Org Tree reporting section. *In addition to the PSLite Expenditure Control report, other available reports include the FIN Production's Resource Inquiry, the Available Amount shown on the Reporting System's Revenue and Expense Statement Summary & Detail, the Financial Statement Summary, and the portal's Simple Speedtype Query. Fund 344 EC for Fund 34 has the same type of encumbrance issues as Fund 10. EC for Fund 34 will be primarily Net Assets at the program level. Flow of available resources versus expenditure also will be an issue. The CU Foundation available balance will count towards available resources if your Gift FOP is linked to a CUF account. SPO tips from Connections newsletter If you have Standing Purchase Orders (SPOs) that use Expenditure Controlled SpeedTypes ask yourself: ● Do you typically change the SPOs default SpeedType to a specific, different SpeedType? You may want to create a default split distribution between these SpeedTypes, using the SPO Adjustment component in the Finance System. ● Is the SPO total dollar amount and end date correct, given your expected total spending with the vendor under this contract? Email the appropriate purchasing agent if you need to adjust the SPO Total Amount or end date. ● For SPOs ending after June 30, 2008: is the amount encumbered in the current fiscal year appropriate given your planned spending? You can redistribute program funds between Fiscal Year 08 and more future fiscal years using the SPO Adjustment component. ● For expired SPOs: have you been fully invoiced? You can close the SPO and clear any remaining encumbrance using SPO Adjustment. For questions on how to accomplish SPO change orders, encumbrance distributions, and SPO close actions, refer to the Step-by-Step Guides or the FinProHelp Desk. Questions about the use of specific SPOs should be directed to your purchasing agent. Phase 1: Funds 26, 72, 78, 80 January 2007 Expenditure Control (EC) Phase 1 began January 8, 2007 and includes Funds 26, 72, 78, and 80. The default attributes for these Funds was set at the program level using net assets. EC overview and general information Background and purpose Expenditure Control (EC) is one of the Presidents fall 2005 initiatives that the Office of University Controller (OUC) is implementing to minimize deficit spending. Deficit spending is when expenditures and/or commitments exceed available resources. The message is dont spend what you dont have. Phased in over 5 years Expenditure Control will be phased in over five years to include additional Funds with each successive year.
Overview Expenditure Control is achieved by building rules (edits) in the Finance System that prevent certain types of transactions from posting if they create a deficit. Prior to this, there were no System edits to stop deficit spending.
However, some transactions critical to university business are allowed even if they produce a deficit such as payroll journals, PETs, Procurement Card, approved subsystem feeds (e.g. BRS, Telecom, Mailing Services). There are two basic factors added to the Finance System attributes that perform the actual control via system edits: Expenditure Control Rule and Available Resource Basis. Expenditure Control Rule The Expenditure Control Rule is a Program/Project attribute in the Finance System that identifies:
Together these make several possible combinations to define the Expenditure Control Rule choices applicable to the FOPPS. In addition, Org levels controlled at All Expense (vs. Budget Pool) have an additional attribute of whether the available resource basis is budget ledger (DAB) or net assets (DAN).
(Expenditure Control Rule D allows for programs within the same org to be set at either D or P . Programs set at P are excluded in calculating available resources for the org. Org available resources are net of programs under that org that are set at P.) Available Resource Basis The Available Resource Basis is a speedtype attribute in the Finance System that identifies what the speedtype will use to determine available resources.
Actuals and encumbrances (including SPOs) reduce these resources and result in a net amount available for spending (or encumbering). Exemptions A few speedtypes are issued an exempt status (EX) for the Expenditure Control Rule and Available Resource Basis due to the nature of their operation (e.g. Fund 26 clearing accounts and federally funded Fund 80s that get paid after expenditures). Exemptions are recommended by the campus controller and require approval by the University Controller. How attribute decisions are made The decision on how to configure the controls rests with the campus controller in cooperation with the departments. Business operations of the department and constraints of the various Fund groups are taken into account to establish a default setting applicable to the Fund group as a whole. Default settings are decided by the campus controller's office and are applicable to all or most Program/Projects within that Fund group. Exceptions are made in consultation between the campus controller and the department. Once these attributes are selected and assigned in the Finance System, they remain in effect through the end of the fiscal year. Changes can only be made prior to the start of a fiscal year. The deadline for changes is in late May. Boulder default settings for new and existing FOPPS Default settings appear in the table below. Exceptions to these must be based on business needs. If you think a new FOPPS should be different than the default, confer with your VC office or area accountant.
*BL applies to Fundraising Event speedtypes and may also apply to select endowments. Overrides In exceptional circumstances, overriding Expenditure Control in order for a transaction to post may be in the best interests of the university. ABS & PBA in cooperation with the VCs have developed override guidelines. Such an action takes considerable effort: it is not a quick fix with a fast turnaround. Expenditure Control is turned off in July & August Expenditure Control is suspended during July & August while budgets are loaded, net assets are rolled forward and fiscal year end close processes conclude. It resumes in after the August close and all July and August transactions are checked against the Available Resource Basis. How to check available resources There are several ways to check your available resource balance. FIN Production Resource Inquiry (Reports ► GL N-Z ► Resource Inquiry) The Resource Inquiry report only has information on Fund groups that are currently subject to Expenditure Control. Balance amounts are updated after the noon & evening resource check. The other reports below are updated after the nightly processing. Revenue and Expense Statement Summary/Detail and Financial Statement Summary These Reporting System reports include an Available Amount. PSLite Expenditure Control Report Shows available balance for Fund 10 at the Org or Node level. The other PSLite reports show available balance. Simple Speedtype Query This portal report shows available balances. Preliminary Resource Check As a last resort, the Preliminary Resource Check performed at validation will fail if there are not enough resources.
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