Mid-Year Review. Guidelines and Instructions. Business Office FY

Transcription

1 Mid-Year Review Guidelines and Instructions FY

2 Mid-Year Review Each year the campus will conduct a comprehensive mid-year review during the month of January to identify any problematic financial situations that have occurred or may be expected to occur prior to the end of the fiscal year, June 30th. The objective of the mid-year review is to perform a division analysis of expenditures compared to budget and identify material concerns (minimum of $25,000), either favorable or unfavorable, that may have a material impact on the current budget. The scope of the mid-year review will include a comprehensive budget review for all revenue and expenditure activities for all funds, including Operating, Lottery, Capital, Financial Aid, Self-Support, and Trust funds. Mid-Year Review Process: Divisions are required to provide a detailed analysis for each ColleagueAreaID and a written report submitted to the addressing material items ($25,000 or greater) that will have an adverse affect on the current budget by fiscal year-end. The Division reports will serve as an attachment to the comprehensive Mid-Year Review report that will be prepared by the for the President s review. Analysis/Scope: The department analysis should consist of a reconciliation of transactions to the Colleague Financial System through December 31, 2015, and estimates for the remaining six months of the fiscal year ending on June 30, Operating Fund Analysis: The department analysis should consist of a reconciliation of transactions to the Colleague Area Report based on the AreaLevel. Financial Aid, Trust Fund Analysis: The analysis should consist of a reconciliation of transactions to the Colleague Fund Report and should be based at a Fund level. Each operation must be reviewed to determine whether it will maintain a positive cash flow to comply with regulatory provisions. Mid-Year projections will be used in determining available fund balances for the subsequent fiscal year. Grants and Contracts (Fund 12): Reconciliation of grant funds will be at the Colleague TOPSlevel. This information will then be provided to the Dean and VP with administrative oversight for respective grant areas as support to the overall report. Report Content: Each Division is required to provide a memorandum commenting on the outcome of their financial review process and include comments on the financial condition of each area level. Favorable and unfavorable variances of $25,000 or greater, and the cause, must be identified and explained in the written report. Additional suggestions to note within the report include service level changes, growth issues, unmet needs, trend issues, new programs, reserves or other factors that currently have or are expected to have an impact on the budget. Supporting Schedules and Reports: The primary objective of the Mid-Year Analysis is to determine if the funds available for the remainder of the fiscal year are adequate to maintain planned service levels. The following reports are provided to assist you in completing the required mid-year financial analysis: The Mid-Year Area Level Report is designed to determine budget balances at June 30 by adding year-todate actuals and estimated projections (by account code) for the operating fund. The Mid-Year Fund Level Report is designed to estimate the year-end balance in the fund as of June 30 th. Projections are done for both revenue and expenses at the account code level. Page 2 of 6 December 2015

3 Mid-Year Review The Division Summary is meant to link to all Mid-Year Area Level and Fund Level reports and provide summary information at the division/area level. The worksheets above are required to be completed for each area or fund and submitted (along with the memo) to the by each Vice President, to demonstrate support of the final projections. Please refer to the web site for all mid-year documents: Technical and Financial Data Information: Account balances will reflect a summary of the following type of transactions that have been processed through December 31, 2015: Vendor payments and encumbrances Receipts Expenditure transfers/journal entries Budget transfers and augmentations Please coordinate with other budget representatives to ensure that all planned budget transfers between areas/divisions are accounted for in both area budgets, and the net balance of the transactions equals zero. Expenditure Transfers: Expenditure transfers must be included when projecting expenses. If an expense is being transferred out, it is a reduction to the department s expenses. The department receiving the expenditure will show it as an increase to expenses. Coordinate with the appropriate department to ensure that all planned expenditure transfers are accounted for in both areas projected expenses. Cost Projection: The mid-year review provides the opportunity to look at what funds are remaining to cover expenses over the next six months. This is the time when you project the expenses expected from January through June that must be covered with the budget available. Some things to keep in mind when projecting the remaining year expenses are: Will current monthly costs stay constant? If so, the YTD costs will be the projected costs also. Non-bargaining unit or temporary employee salary increases that will not receive a budget allocation should be included. Are you expecting to purchase equipment in the next 6 months? Will budget transfers take place to either increase or decrease your funds? Is there an annual one-time expense that has not occurred yet? Historical information is always helpful. Look at your June 30 Area or Fund report from the prior year to see what account code actuals were and what your budget balance available was. Plan with the chance of unforeseen expenses popping up. Page 3 of 6 December 2015

4 Mid-Year Area Level Report It is suggested that you have the Mid-Year Area Level Report form open before you start this process. A B C D E F G H I J K L Mid Year Budget Review as of 12 - Jun and FY Area Fund TOPS ` Area Title Major Object GL Account # TOPS Title Object Title Original Budget YTD Actuals Encumbrances % of Budget Projections Year-End Balance xxxxxx Department 54 Supplies & Materials 11_xxx_00_xxxxxx_54300 xxxxxx Department Supplies & Materials 15, % , _xxx_00_xxxxxx_55100 xxxxxx Department Personal Service Contract % _xxx_00_xxxxxx_55105 xxxxxx Department Contract Services 3, , % 1, (96.72) 1 11_xxx_00_xxxxxx_55200 xxxxxx Department Travel & Conference 12, , % 12, (7,451.05) 11_xxx_00_xxxxxx_55300 xxxxxx Department Memberships % XXXX Department - Summary 55 Other Operating Expenses & Svcs 11 Unrestricted General Fund All (YT D thro ugh 11/ 12/ 14, ~37% co mplete) 11_xxx_00_xxxxxx_55105 xxxxxx Department Contract Services 196, , , % 107, , _xxx_00_xxxxxx_55400 xxxxxx Department Insurance 300, , % 169, , _xxx_00_xxxxxx_55635 xxxxxx Department Printing Services - Vendor 65, , , % 32, (20,443.45) 11_xxx_00_xxxxxx_55650 xxxxxx Department Maintenance Agreement 51, , % 15, , , , , % 340, , Hartnell College, 411 Central Avenue Salinas, CA Contact Hartnell Phone: Hartnell College - Fully accredited by the Western Association of Schools and Colleg 1 Need to move budget from Contract Services to cover projected travel and conference expenditures Jan - June

5 Report results: 1. Columns G, H, and I represent summary (by object code) financial information from Colleague through December 31. Detail of the summary financial figures may be found by running the Colleague GLBS report through December Column J is the percentage of budget spent as of December 31. Areas that significantly exceed or are below 50% may require additional research. 3. Column K is an automatic projection of expenses January June, based on expenditures for the first half of the fiscal year. If projections for your area/fund/tops will be different, you must manually update the projections by typing in a new amount over the automatic projection in Column K. 4. Column L will automatically recalculate when you enter new projection amounts. 5. If you need to add a row for an additional account code, be sure to copy the formulas in Column L into the added row, ensuring that your bottom line is accurate. 6. Use Column A to number comments/notes you might want to add below the worksheet (see sample). 7. If you adjust encumbrances, consider whether to adjust projected expense to cover cost of encumbrance. 8. Salary and benefit expense are included in the projections based on first six months expenditures. If you have adjustments to salary be sure to make the proper adjustment to benefit projections, as well. 9. Anticipated expenditure transfers (debit or credit) should be included in operating expense estimates. NOTE: Fund Balance Use. Self-support, Trust & Grant Funds cannot end the year in a negative balance. If it is estimated that current fiscal year expenditures will exceed revenues, the accompanying memo must address how the shortfall will be eliminated. Please contact the for assistance if needed. The recommends that if year end balances show a sizeable variance from your original budget, that budget adjustments be made. Please contact the for additional information. * * * * * * * * * * * * * The Division Summary Worksheet will provide a high level analysis of the division. This summary (sample below) must be submitted with supporting Mid-Year Analyses, and the explanatory memo. The will require an electronic copy of the Division Summary Worksheet, as well. Division Summary worksheet Division: Academic Affairs Preparer: VP Dean/Director Budget Manager (for grants/contracts Fund Area Tops Budget Projected Expense Projected Year End Balance Dr. Kildal Shannon Bliss Bronwyn Moreno ,100 50,200 (100) Dr. Kildal Dr. Atallah , ,000 1,000 Comment - see attached analysis for detail

6 Mid-Year Review 2015/16 Mid-Year Review Timeline Task Description Date Responsibility Mid-year guidelines distributed and posted to the web December 10 December financial close January 12 Accounting One-on-one assistance (by request) January 19 February 10 Mid-year analysis performed January 19 February 10 (4 weeks) & Divisions Division mid-year reports submitted to February 10 Vice Presidents Division reports reviewed February 10 February 26 (2 weeks) Comprehensive mid-year report reviewed March 1 Controller and VP, AS Mid-year report submitted to the President March 8 Page 6 of 6 December 2015