INTRODUCTION TO AUXILIARIES. Conducted by the Budget Office Mary Alice Mills Budget Analyst

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1 INTRODUCTION TO AUXILIARIES Conducted by the Budget Office Mary Alice Mills Budget Analyst

2 WHAT WILL WE COVER? Introduction to University Funds Definition of Terms Auxiliary Types Auxiliary Rate Methodology Documentation ti & Record Retention ti Calendar of Important Dates Resources

3 UNIVERSITY FUNDS Education & General (E&G) Contracts & Grants (C&G) Local Activities Vending Athletics Scholarship Auxiliaries

4 AUXILIARIES Auxiliaries are revenue generating funds. They operate on a cash basis and therefore spending is not controlled by budget. There is NO Cash Checking feature in OMNI. Auxiliaries must follow all general FSU Policies & Procedures, including payroll, travel, purchasing and accounts payable.

5 ESTABLISHING AN AUXILIARY Requirements Minimum $10,000 revenue per year (excluding Labs) Must be ongoing activity If Cash, Checks or Credit Cards are used: Approved as a Cash Collection Point To Establish an Auxiliary Fill out Request to Establish a New Auxiliary Account & FSU Department t ID forms Obtain Dean s approval Send to Budget Office to obtain remaining approvals at least 6 weeks in advance

6 DEFINITION OF TERMS Auxiliary Service Board (ASB): monitors cash balances, rates, approves new auxiliaries and overhead assessments. Overhead Assessment: annual assessment for indirect costs, borne by central administrative units in support of auxiliary activities (0%, 1%, Full currently 2.28%). 28%) Casualty Insurance: covers Worker s Compensation, General Liability & Federal Civil Rights for the University. Unemployment Compensation: provides temporary income payments to make up part of the wages lost by workers who lose their jobs through no fault of their own. Cash Collection Point: a department, event, club or other entity which collects more than $1,000 annually in cash, checks or credit cards.

7 AUXILIARY TYPES 5 Types: Enterprise, Educational, Labs, Service & Other Enterprise: to furnish goods or services primarily to students, faculty, or staff. They are allowed to earn a profit on internal or external users, but not C&G users. They are not restricted in the rates they charge, but can t compete at an unfair level. Example: Computer Store Full Overhead Educational: primarily exist to provide educational support for credit courses. They help demonstrate classroom or related educational techniques to students. Can t make profit from internal users, should be break even in the long run. Example: Marine Lab 1% Overhead

8 AUXILIARY TYPES Labs: established to facilitate the purchase of consumable supplies for labs associated with student credit or non-credit courses, and to deposit fees collected from students. They are break even and therefore should not make a profit. Example: Chemistry Student Lab Fee 0% Overhead Service: to furnish goods or services primarily to internal users. Can t make profit from internal users, should be break even in the long run. Example: Telecommunications 1% Overhead Other: different types of auxiliaries not specifically defined. These auxiliaries are maintained by the Budget and Controller s Office and are managed by the ASB. Example: Loans, Construction 0% Overhead

9 RATE METHODOLOGY Direct + Indirect Costs = Total Costs Cash Balance 15% of annual expenditures Rates for Internal / External users Doing business with C&G: Unallowable Costs hf t t / ht l Includes Funds 520, 523 & 524 Inventory

10 RATE METHODOLOGY OF HAMBURGER Direct Cost Per Item Per Year Buns $10/package -10 buns = $1.00 $372,000 Meat $20/package -10 patties = $2.00 $744,000 Labor, grill (2) 75 patties = $0.13 $49,600 Labor, dress (3) 50 burgers = $0.20 $74,400 $3.33 $1,240,000 Indirect Cost Per Item Per Year Insurance $600/month 31,000 burgers = $0.02 $7,200 Manager $15/hour 150 burgers/hour = $0.10 $37,200 $0.12 $44,400

11 RATE METHODOLOGY OF HAMBURGER Direct + Indirect = Total Cost Per Item: $ $0.12 = $3.45 Per Year: $1,240, $44, = $1,284, $1,284, ,000 burgers = $3.45 Charge Internal Users: $3.45 Charge External Users: $3.60

12 RATE METHODOLOGY OF HAMBURGER Build under/over collected costs into rate: Total Costs + Under collected amount Total Costs Over collected amount Under collected $5,000 last year $1,284,400 + $5,000 = $1,289,400 $1,289, ,000 burgers = $3.47

13 DOCUMENTATION & RECORD RETENTION Request to Establish an Auxiliary & FSU Department ID Form AAIF: Annual Auxiliary Information Form Casualty Insurance & Overhead Assessment Memo, including attached assessment amounts Rate Schedule & Methodology Ledgers and any other backup for transactions, including invoices, IDRs & OBI Reports

14 Current Month: Revenue $ Expense $(111,096.00) Balance $( ) Ending Period Balance: Beginning $160, Current $(110,974.34) Ending $49,997.44

15 CALENDAR OF IMPORTANT DATES May: Online Budget Training Opens July: Submit Operating Budget August: Complete the AAIF and return to Budget Office September: Memo is sent out to Budget Managers with Casualty Insurance & Overhead Assessment amounts November: Casualty Insurance is charged February: Overhead Assessment is charged

16 RESOURCES Budget Office: Forms, Job Aids, FAQ, Budget Manager Responsibilities, Policies & Procedures, Auxiliary Information Operating Budget Info & Training (Blackboard) Information Controller s Website: Forms, Useful Queries, Policies, Payables & Disbursements- Expenditure Guidelines OBI Job Aids: Reporting/Financial-Reports

17 HELPFUL REPORTS & TRAINING OMNI Cash Balance Query: FSU_DPT_CASH_BALANCE OBI Reports: Departmental Ledger AUX Fin & Budget Position Transaction Details HR - GL Detail Other Helpful Training Auxiliary Rate Calculation BTBUD3 Managing A Budget BTBUD1 General Ledger Reconciliation BTGL04

18 FORMS & DOCUMENTS

19 CONTACT US Please fill out a survey! The Budget Office 321 Westcott Building edu