Faculty of Medicine

Business Manager MeetingOpen Forum

1. Operating Cash Flow – expectations

2. Capital Projects – setting up capital accounts, transferring funds, time lines

3. MB Health cash flow requirements

4. Predecessor Funds (Source of Funds) – what are they

5. Deposits to expense lines

6. Open forum discussion

Today’s Agenda

Cash Flow Expectations• Please make sure your forecast is as accurate

as possible. • If you are going to have a surplus, the Dean

needs to know.• If you are going to over expend your FOP, you

need to know.• Any surplus in the 110000 Fund will be caught

up in carry over. Any deficit will come back to the department at 100%.

Capital Projects• Departments must identify Capital Projects early- by

September

• Start with email to SFO listing funding source, project scope, time line. We will assist in setting up the capital fund

• Capital funds are carried over at 100% but must be set up early in the fiscal year.

• If you are contacting Physical Plant, keep all documentation related to time lines and commitments.

• Jonathan Hyman, Assistant Manager, Capital Revenue, Capital and General Accounting– Sets up the capital fund– Tracks expenses– Monitors the progress– Will contact SFO if project goes over budget

• Any transfers from operating require approval from Joanne Dyer, University Budget Officer or Tom Hay, University Comptroller.

• Departments are responsible for any projects that go over budget.

Manitoba Health Reporting

• Why:• MB Health requirement • Dean needs to know how you are spending the MB

Health funds

• How:• Departments will run the Revenue and Expenditure

Statement report in FAST for FUND 12101

• We will require a separate report for each use of the MB Health Funding.

• IMG• NP• Increased Enrolment Phase 1 and 2• Other

• Submit your quarterly report to Nashon.• Due dates are based on the 2009/2010

Monthly Cut-off schedule as set by Financial Services.

• July 15, Oct 15, Jan 15 and April 20

The University of Manitoba - Faculty of Medicine - Department of XXXXXXXX

Quarterly Reporting

As at June 30, 2009

April to June July to Sept Oct to Dec Total Outstanding Jan to Mar Totals

Actuals Actuals Actuals Actuals Commitments Projected

Salary Expenditures

Academic Staff 100,000.00 100,000.00 - 200,000.00 200,000.00 - 400,000.00

Support Staff 50,000.00 50,000.00 - 100,000.00 100,000.00 - 200,000.00

Benefits & Levy 10,000.00 1,000.00 - 11,000.00 4,000.00 - 15,000.00

Total Salary Expenditures 160,000.00 151,000.00 - 311,000.00 304,000.00 - 615,000.00

Non-Salary Expenditures

Travel 10,000.00 5,000.00 - 15,000.00 - - 15,000.00

Printing and Duplicating 500.00 450.00 - 950.00 - - 950.00

Other Materials and Supplies 1,000.00 1,000.00 - 2,000.00 - - 2,000.00

Telecommunications 1,000.00 1,000.00 - 2,000.00 - - 2,000.00

Other Operational Expenses 1,000.00 1,000.00 - 2,000.00 - - 2,000.00

Externally Contracted Services 1,000.00 1,000.00 - 2,000.00 - - 2,000.00

Professional Fees 1,000.00 1,000.00 - 2,000.00 20,000.00 - 22,000.00

Capital Asset Acquisitions 1,000.00 - - 1,000.00 - - 1,000.00

Repairs and Maintenance 1,000.00 1,000.00 - 2,000.00 5,000.00 - 7,000.00

Total Non Salary Expenditures 17,500.00 11,450.00 - 28,950.00 25,000.00 - 53,950.00

- -

Total Salary and Non Salary Expenditures 177,500.00 162,450.00 - 339,950.00 329,000.00 - 668,950.00

• Method used by non profit organizations and the public sector

• Accountability is measured rather than profitability

• Main focus is to keep track of resources that are designated for specific purposes; to avoid mixing up resources that are intended for diverse purposes

• Ensures management fulfills the stewardship responsibility for proper disposition of the resources

Fund Accounting

Fund Accounting Example

• Each fund further segregated for stewardship purposes– Research Fund Example

Why Fund Accounting?

• By recording and reporting resources in this manner, we are better able to:• Identify and document if resources are being used

properly• Determine our condition on a fund by fund basis• Plan, budget and later evaluate if we are

accomplishing objectives• Communicate financial information to all who need to

know

Why Fund Accounting?

• Answers the following:• Do we have money to spend?

…. Important information for faculties and units

• Are funds being used appropriately?… Financial Services needs to know

• Have University guidelines been followed?… Internal Audit needs to know

• Are funds being used for the defined purpose given?… Important information to granting agencies

Why Fund Accounting?

• Answers the following questions:

• Did the University provide the goods and or services expected within budget?

… Industry partners want to know

• Has the University utilized public funds (tax dollars) in an appropriate manner?

…. Important information for federal and provincial governments

Why the Separation of Funds?

vs.

Why the Separation of Funds?

• Better manage budgets• Understand how the University’s operating activities

are funded• Know what needs to be cut in case of downsizing or

a stop in funding from external sources• Facilitate accountability to funding providers

Operating Fund Hierarchy

• Comprised of two revenue sources1. Primary Sources – COPSE & Tuition2. Secondary Sources (multiple)

• Levels of the Fund Hierarchy represent the 2 main categories / revenue sources

• Main Levels are called Fund Types1. Unrestricted Operating Funds (Fund Type 01)2. Internally Restricted Operating Funds

(Fund Type 11)

Operating Fund Hierarchy

Operating Fund Hierarchy

• Various levels of the hierarchy are called levels or predecessors

General FundsType 10

Unrestricted FundsType 01

Unrestricted Operating Fnds 110

Individual Allocation Funds1240

Start Up Research12400

“Startup – Example”12xxxx

Fund Type

Predecessor Level

Predecessor Level

Predecessor Level

Predecessor Level

Data Entry Level

Unrestricted Operating FundFund Type

Fund Predecessor

Fund Predecessor Description

Allocation & Administration

Revenue Source

10

01

11000General Operating Allocation

RCGA, B&GCOPSEOperating Revenue (Overhead, Investment, Miscellaneous)

11100 Tuition RCGA Tuition Revenue

12400 Start Up Research Units & Faculties Operating, COPSE & Tuition Revenue

12500 Overhead B&GReserves (Central Administration – Account 711105)

12600Other Allocations & Projects

B&G Operating, COPSE & Tuition Revenue

12601 Research Matching B&G Operating revenue

12650 VP (Acad) Projects B&G COPSE, Operating & Tuition Revenue

12103Targeted COPSE ACCESS

B&G COPSE Access

12107Targeted COPSE Projects

B&G COPSE

12700Pooled & Individual Travel & Exp

B&GReserves (Central Administration – Account 797010)

12900Operating Research Grants

VP (Research), B&G

Operating, COPSE & Tuition Revenue

12970Operating Research Development

VP (Research), B&G

Operating, COPSE & Tuition Revenue

Internally Restricted Operating Fund

Fund Type

Fund Predecessor

Fund Predecessor Description

Allocation & Administration

Revenue SourceRevenue Account

Range

10

11

12100Targeted Other Federal Projects

Units & Faculties Federal Contract Revenue 567000-567006

12101Targeted Provincial Projects

Units & FacultiesProvincial Grant RevenueProvincial Contract Revenue

564001-564009568001-568010

12102 Targeted Industry Units & Faculties Other Contracts 569001-569014

12105Targeted Misc Fnds Assoc's Grants

Units & Faculties Other Grants 566001-566998

12104Targeted Indirect Cost of Res (IMS - 613)

VP (Research)Social Sciences and Humanities Research Council of Canada (SSHRC)

N/A

12200 Income Funded Projects Units & Faculties

External Sales & Service IncomeInternal Sales & Service Income

520001-524905530001-534951

12300Transfers from Trust & Endowment

Trust & Endowment

Transfers in from Trust 820002

12800 Gifts for Operating Units & FacultiesGifts & ContributionsGifts to Operating

540001-541000589001

Finding the Predecessor Code

• Utilize the Operating Fund Hierarchy website available online– Aurora Finance Chart of Accounts webpage

www.umanitoba.ca/computing/renewal/aurora/finance/aca/coa

• Utilize FTMFUND in Banner1. Enter Query2. Type Fund code in Fund: field3. Execute Query4. …Predecessor Fund is listed

Deposits To Expense Lines• There should be NO deposits to expense lines at all. The reasoning

behind this is that we don’t want to get to the end of the year and have a credit balance sitting in an expense line account.

• For deposits that would have been reimbursing an expense on a 110000 fund (or any unrestricted fund), this should get deposited to the specific departments cost recovery fund (we can set new ones up if each department doesn’t have a cost recovery fund) and the expense would be transferred from the unrestricted fund to the cost recovery fund.

• For restricted funds, again nothing is deposited to an expense account line. Rather it should be deposited to a revenue cost recovery account line and the expense will be sitting on the appropriate expense line which in theory nets out to zero.