UD FINANCIALS, PROCUREMENT

  • Procurement
  • UD's Accounting System and Structure
    • Chart of Accounts
      • The Chart of Accounts (COA) is the organizing framework for budgeting, recording, and reporting on all University financial transactions. It is designed to capture financial information to facilitate good financial decisions. The University's COA is:

        • A series of financial values (Chartfields) that represent the University's mission, organizational structure, and fiscal accountability.
        • Supports central, college and departmental financial reporting.
        • Used every time there is a financial transaction.
    • Chartfields
      • Chartfields are values used to classify financial transactions entered into the General Ledger. Each ChartField represents one specific type (piece) of financial data and fulfills a financial need. That information may be required for regulatory reporting, for tracking expenditures against budgets, for managerial decision-making, or other reasons.


        • There are nine Chartfields in the financial  system (not all 9 Chartfields are used on each transaction).
        • Some Chartfields are required for every accounting transaction (Purpose, DeptID, Fund, Account and usually Program).
        • The remaining Chartfields are used to report even more information about a transaction.
    • Chartfield String
      • Chartfields comprise the Chartfield string. The ChartField String is comprised of a sequence of values that describes the financial transaction.
    • Accounting Periods
      • Designates the month of financial activity.

        01 - July
        02  - August
        03 - September
        04 - October
        05 - November
        06 - December
        07 - January
        08 - February
        09 - March
        10 - April
        11 - May
        12 - June
        998 - 1st year end adjustment period (2nd close)
        999 - 2nd year end adjustment period (3rd close)
        0 - used during year end closing process; it stores balance forward amounts (i.e. beginning balances)
    • Fiscal Year
      • July 1 to June 30

        The Fiscal Year is designated by the calendar year in which its June 30th falls. (Example: the fiscal year 7/1/2011 to 6/30/2012 is called FY12.)
    • Accounting Life Cycle/Closings
      • Daily Accounting Processes
        • Each evening financial transactions from journal vouchers and various sub-systems are posted to the Actuals Ledger (general ledger) in FIPRD. This financial data is copied to FIRPT where it becomes available in UDataGlance, PS Query and Cognos the next day.
      • Monthly closing process
        • The steps taken by General Accounting to produce accurate and complete financial information for an accounting period (month).  After a period has been closed, transactions can no longer be posted to it.


          1. On the first two working days of the new month Journal Vouchers input is allowed for prior accounting period.
          2. GA ensures all transactions for the prior month are complete and posted to the general ledger.
          3.The monthly closing processes are run, including the benefit allocation and the Grants month-end process.
          3.  Generally, on the 4th business day, the closing processes are complete and GA sends an email to the udfs-comm email list to alert the campus the accounting period has been successfully closed. 

          http://www.udel.edu/genacct/dnloads/YE_Close_Sched_updated.html
      • Annual closing process
        • The steps taken by University Finance, General Accounting and other central units to produce accurate and complete financial statements and data for a fiscal year.

          UD accounts for expenses and revenues on an accrual basis. This mean expenditures are recognized when goods are received or services rendered, not when payment is made. The same applies to revenues, they are recognized when they are earned not when received.

          http://www.udel.edu/genacct/dnloads/YEProcFY2011.html
    • General Ledger and its Sub-systems and Journals
      • The General Ledger is the summary of all of the University's budgeting and financial transactions. All accounting entries entered from transactions created in the sub-systems are sent to the General Ledger as Journals which are then posted to the Actuals ledger. The entries are recorded as a double entry with one amount as a credit and the other amount as a debit. The total amount debited and the total amount credited must always be equal.
    • How to request a new Purpose code
      • A request for a new Purpose code is handled by one of three office, depending on the funding source of the new code.

        • Basic budget or self-supporting Purpose codes ( "11" or "21" codes) and Facility codes ("RNOV", "BLDG", etc.) - contact Budget Office at 831-1234 or lookup your department's budget analyst here - www.udel.edu/Budget/assignments.html
        • Contract or grant Purpose code - these codes are not requested, but instead are assigned as part of the award process; the PI and grant administrator are notified of the new Purpose code once it has been set-up.
        • Gift, Agency, designated ("17" code), or delegated authority Purpose codes - contact Marsha Lockard in University Finance (marshalo@udel.edu or 831-0727)
        • All other Purpose codes - contact Marsha Lockard in University Finance (marshalo@udel.edu or 831-0727)
    • What is Fund Accounting?
      • Fund Accounting is a method of segregating resources into categories, (i.e. funds) to identify and track the source and the use of funds.

        Fund accounting classifies all resources into funds according to specific limitations placed on their use by the resource providers.

        Resources come from a variety of sources and must be used appropriately and not comingled. 


        Primary objectives of fund accounting:
        1. Demonstrate accountability and stewardship of funds
        2. Determine financial condition/value of our resources
        3. Use for planning and budgeting our resources (funds)
        4. Evaluate organizational and financial performance
  • Webform
  • Depositing credit card receipts
    • UDeposit
      • UDeposit is an online tool for depositing and allocating credit card receipts into the University Financial System.

        Information: http://www.udel.edu/genacct/ (click UDeposit under Controller's Office)
  • Financial Management Tools
  • Equipment
    • Equipment
      • Policy 5-6, Use and Disposal of University Equipment and Material states

        "I.PURPOSE
        To provide for effective control and a coordinated approach to the use and disposal of University equipment and material.

        II.POLICY
        All equipment and material is the property of the University as a whole, unless otherwise clearly indicated as outlined below. This equipment and material is to be utilized in the most effective manner to meet the University's goals and objectives. When it is decided to dispose of University equipment or material, the Departments of Supporting Services and Procurement Services shall be notified to insure that established University policies and procedures are followed. All internal collection and disposal policies must refer to this policy name and number."

        http://www.udel.edu/ExecVP/policies/procurement_and_auxiliary_services/5-06.html
    • Equipment Survey
      • General Accounting conducts an Annual Equipment Survey. The purpose of the annual survey is to verify and correct data about UD's equipment inventories.

        See Equipment Survey Instructions: http://www.udel.edu/genacct/asset.html
    • Equipment fabrication
  • Space Management and Survey
  • F&A (Indirect Cost) Proposal
    • What is F&A? What is the Indirect Cost Proposal?
      • F&A means Facilities & Administration and it amount of overhead allowed to be charged on a federal contact or grant (research) project. F&A is sometimes called indirect costs, because they are not the direct costs that can be identified with a particular project, such as salary, lab materials and other supplies.

        The Indirect Cost Proposal (ICP) is mechanism by which the University F&A rates are established. The rates are negotiated with UD's federal cognizant agency (Office of Naval Research), typically every 3 years.

        http://www.udel.edu/research/training/swf/fanda/fanda.swf
  • University of Delaware Financial Statements
  • Internal Auditing
    • Introduction
      • The Institute of Internal Auditors defines internal auditing as providing independent, objective assurance and consulting services designed to add value and improve the operations of an organization. Internal audits accomplish these goals by bringing a systematic and disciplined approach to evaluating and determining whether the organization's risk management, control, and governance processes, as designed by management, are adequate and functioning as intended.

        http://www.udel.edu/Treasurer/internalaudit.html
    • Principles of Reasonible Conduct
      • The University of Delaware is an engaged community of scholars that creates and communicates knowledge and applies it to the critical needs of our state, our nation and our world.  All employees of the University are expected to uphold the highest ethical standards in their relationships with one another, with students, with the wider community and in all of their professional pursuits.  Inherent in this responsibility is the obligation to provide educational support to our students that encourages the free and unfettered pursuit of learning.   
        1. Ethical and Responsible Conduct
        2. Respect for Others
        3. Equal Opportunity
        4. Avoidance of Conflict of Interest
        5. Responsible Conduct in Research
        6. Responsible Stewardship and Use of University Property, Funds and Technology
        7. Environmental Stewardship and Sustainability
        8. Environmental Health and Safety
        9. Respect for Privacy and Confidentiality
        10. Appropriate Conduct with Respect to Gifts, Travel, and Entertainment
        11. Appropriate Use of University's Name, Trademarks and Logos
        12. Responsible Reporting of Violations 

        http://www.udel.edu/responsibleconduct/
    • Internal Controls
      • Internal control is broadly defined as a process, effected by an entity's board of trustees, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

        - Effectiveness and efficiency of operations
        - Reliability of financial reporting
        - Compliance with applicable laws and regulations
        - Safeguarding of assets

        http://www.udel.edu/Treasurer/intcntrldef.html
    • Compliance Hotline
  • Department Services Related to Deposits, Non-Student Billing, and Collections & Receivables
    • Departmental Invoicing
      • Billable departmentally generated revenue not related to student tuition must be managed via UD Receivables.

        Webform: FIN Bill Non-student customers

        Policy: Cash Receipts Policy 3-21 www.udel.edu/ExecVP/policies/financial/3-21.html Training: Materials available upon request. Contact Karen Clark (kdc@udel.edu)
    • Depositing Cash/Checks
      • All cash/checks must be submitted to the Cash Controls dept for deposit and posting.

        Webform: FIN Cash Transmittal

        Policy: Cash Receipts Policy 3-21 www.udel.edu/ExecVP/policies/financial/3-21.html Training: Questions can be directed to Cash Control office x1242
    • Requesting approval for a new purpose
      • Departments requiring a purpose code for the receipt of new revenue must submit a written request to M. Stone or S. Holbrook-Wagner. Requests must include the departmental Cash Handling policies.

        Policy: Cash Receipts Policy 3-21 www.udel.edu/ExecVP/policies/financial/3-21.html Training: Questions can be directed to Sondra Holbrook-Wagner at x2570 (sondra@udel.edu)
    • Wiring Funds to the University
      • Contact Cash Controls at x1242 or Debra Jackson (debraj@udel.edu) for instructions for submitting funds electronically.
    • Collection/Receivables Support
      • Departments should utilize PeopleSoft Financials reports to identify aged receivables. Open balances over 120days will be sent to outside collection agency. Open balances over one year will be written off.

        Contact Karen Clark at x8942/kdc@udel.edu
  • Revenue-Based Budgeting (RBB)
  • Other Budget Tools
  • Budget Revision Webforms
  • Benefit Establishment
    • Benefits Costs  (old term: fringe benefits )
      Starting with the implementation of Responsibility Based Budgeting (RBB) in FY09, the cost of University-paid benefits began to be charged to all individual Purpose codes that had salary expenses.  By doing this, departmental staff see their true personnel costs (salaries, wages and benefits) reflected in their monthly expenses.  There are two sets of Benefit Cost rates; the internal ones are set annually by the Office of the Vice President for Finance and Administration.  And this office also negotiates with the federal government (Department of the Navy) to determine external benefit rates, often at the same time the F&A rates are negotiated.

      Benefit Rates calculation
      The calculations are made for four salary classes:  Actual benefit expenses are divided by actual salary expense to determine a percentage for each salary class.  The external (federal) rates are slightly lower than the UD internal rates due to mandated adjustments to the actual benefit expense amounts in the federal regulations.

      Charged to service units for 4 different categories:
      • Professional/Faculty
      • Staff
      • Graduate Student
      • Other

      http://www.udel.edu/Budget/Benefit%20Rates.html
  • BTA System
    • Budget Turnaround (BTA) system overview
      • The University uses Budget Turnaround (BTA) so that service centers can submit revenue and expense budgets to the Budget Office for the new fiscal year.  BTA is an online budget entry system that assists service centers in expense and revenue predictions.  It also provides 3 year actualized revenues and expenses to assist in budget planning for service centers.

        The Budget Office will release the budget target along with planned increases in employee salary, benefit rates, scheduled equipment replacement, and other support expenses to service centers through BTA. Based on rate increases and budget target, the service center will compile a beginning budget for the next fiscal year to be returned to the Budget Office for review. Upon finalizing the budget, information from BTA is loaded into PeopleSoft, the University's online financial management system.
    • Timeline
      • Self-supporting:
        December- Release self-supporting BTA to units
        January- Self-supporting BTA screens due from units
        February-Self-supporting BTA review complete

        Basic Budget:
        April- Release basic budget BTA
        May- Basic budget BTA screens due from units
        June- Basic budget BTA review complete
    • Entry Procedure