N I V E R S I T Y O F W Y O M I N G

Transcription

1 Budgeting Basics

2 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 2

3 Course Objectives In this course, you will be introduced to budgeting and forecasting at the University of Wyoming. After completing this class, you will have learned about: The concept and definitions of planning, budgeting, and forecasting The Chart of Accounts at UW A high-level overview of the WyoCloud Planning and Budgeting system A high-level overview of the budgeting and forecasting process at UW Next steps 3

4 Training Curriculum Course Description Delivery Budgeting Basics Introduction to WyoCloud Planning and Budgeting Navigating WyoCloud Planning and Budgeting WyoCloud Planning and Budgeting Process Basic budgeting and forecasting principles. Introduction to the UW Chart of Accounts. High-level budget timeline. Introduction to the new system, terms, features, and security groups. Logging in and navigating in WyoCloud Planning and Budgeting. How to perform budgeting process tasks and approvals in WyoCloud Planning and Budgeting. Live, Instructor- Led Training WyoCourse WyoCourse Live, Instructor- Led Training Open Labs Technical and process experts will be available to answer questions. Additionally, Users can practice performing budgeting tasks in WyoCloud Planning and Budgeting Open Lab 4

5 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 5

6 Planning Planning provides the overall venue and process for stating the direction and financial objectives of an organization. Most organizations put together an annual plan that is part of the larger strategic plan of the organization/university. This is where the senior executives lay out their vision for what is possible. However, it is critical to maintain a long-term view in these situations so that short term tactics do not overpower long term goals. 6

7 Long-Term vs. Short-Term Planning There are two basic types of planning, a long-term planning which includes strategic planning and capital budgeting, and short-term planning which includes annual operations budgeting. Long-term planning involves making strategic decisions where the effects will extend several years into the future. Long-term strategic planning involves identifying the organization's mission, the goals flowing from that mission, and the strategies and actions that will be taken to accomplish those goals. (i.e. Breaking Through , and new Tourism Management degree) Short-term planning looks at the characteristics of the organization in the present (i.e. tuition revenue and faculty and staff salaries) and develops strategies for improving them. These solutions set the stage for addressing problems and reaching long-term goals. 7

8 Budgeting Budgeting is the process of allocating finite resources to the prioritized needs of the University. A budget provides an important tool for the control and evaluation of both the sources and the uses of the finite resources. Functionally, UW s budget is a financial representation of the University s planned operations for a given period of time. The budget is finalized before the beginning of the University s fiscal year (July 1) and actual revenue and expenditures are measured against the budget as a means of reviewing performance and managing expenditures. 8

9 Deficit vs. Surplus The basic principle of a budget is to compare the cost of the planned activity to the expected income and establish whether there will be a surplus (income exceeds cost) or deficit (cost exceeds income) at the end of the period. The University of Wyoming is a not for profit organization so the aim, unlike a business, is not to make surpluses or 'profits'. However we need to ensure that total income and total expenditure are broadly in line with each other. 9

10 Purpose of a Budget The overall purpose of a budget is to clearly establish a plan so that financial performance in relation to a goal or the plan can be carefully monitored. The University of Wyoming budgets to: Allow units and departments to develop a plan with realistic targets to meet the University s strategic goals. Allow ongoing comparison between actual results and the FY budget. Facilitate the equitable and transparent allocation of resources. Ensure that the university s operating model is sustainable. Monitor and analyze historical trends to gain insight into University operations and inform decision making. Allow for adjustment of activities or implementation of new activities to meet strategic goals. 10

11 Top-Down vs. Bottom-Up Budgeting Top-Down Budgeting Approach Top management prepares a university-wide operations budget and distributes it to the major divisions of the organization and then it is passed down to each lower-lever department/unit manager. Bottom-Up Budgeting Approach Each department identifies the individual financial needs of their operations and creates a budget based on the individual components. Totals are created for each department and then totaled again to arrive at an annual budget for the university. 11

12 Forecasting Forecasting is the practice of updating the plans established in the annual budget based on actual income and expenditures. Forecasting is an integral part of all ongoing planning efforts. Forecasting is important for several reasons: Forecasting facilitates planning efforts by quantifying the future costs/benefits of strategic decisions. Thus, budgetary priorities may be evaluated on the basis of their long-term impacts. Forecasting clarifies trends, needs, and issues that must be addressed and evaluated in the preparation of budgets. Forecasting enhances decision-making at all levels of administration. Forecasts provide valuable insight into future issues, which allows administrators to be proactive. 12

13 Forecasting Forecasting is a shorter-term activity, usually performed at regular intervals. When forecasting at UW, you will be forecasting the full year forecast. Once the annual budget is set, departments can reforecast the remainder of the current fiscal year on a quarterly basis. The initial forecast will be seeded from the Budget and all subsequent Forecasts are seeded from the prior forecast. WyoCloud Planning and Budgeting will be updated monthly with Actual data and the various departments can forecast quarterly. Due to the regularly updates, forecasts often provide a more accurate guide to expenditure levels than a budget set before the financial year began. This may mean that a revised current year forecast is more appropriate than the original budget as a basis for future expenditure when setting the following year's budget. 13

14 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 14

15 UW administrative spending higher than peers Laramie Boomerang November 27, 2016 Importance of Accurate Data and Expense Classification Administrative spending growth at the University of Wyoming appears to be among the highest of its peer institutions, and greater than all but one other institution in the Mountain West Conference. Further analysis of the spending trends found errors in UW s accounting and financial systems could have skewed the numbers, UW said. With UW s current financial system, UW said some of the expenditures considered institutional support as part of administrative spending such as a one-time $3.5 million endowment to pay for maintenance in the Michael B. Enzi STEM Building don t really fall into that category. Link to Article 15

16 UW Budget Planning Guide The Budget Office has developed a WyoCloud Planning and Budgeting User Guide This guide outlines and defines the COA which relate to the planning and budgeting activities at UW. University of Wyoming FY2019 Budget Planning Guide The guide is available on the UW Budget Office website, here. Budget Office

17 Chart of Accounts The Chart of Account (COA) is a financial organizational tool that provides a complete listing of every account in the accounting system at The University of Wyoming. The COA is used to create a unique record for each type of asset, liability, equity, revenue, and expense. The Chart of Accounts represents the structure through which financial transaction data is organized and reported and can be thought of as the language of the accounting system. The UW Chart of Account lists the names of the accounts that UW has identified and made available for recording transactions in the general ledger. 17

18 Chart of Accounts The Chart of Account (COA) utilizes hierarchies to better support roll-ups, aggregations, and reporting. Below are a few examples of hierarchies. These hierarchies will be discussed in greater detail in the following slides. 18

19 COA Segments The University of Wyoming s Chart of Accounts structure is made up of nine segments. UW is currently using 8 of the 9 segments and there is a Future segment available, which gives UW flexibility. The Future segment is currently defaulted to a null value of Entity Chart of Accounts Natural Account Fund Class Fund Source Organization Expense Classification Program Activity 9 Future 19

20 COA Segments Segment Description Example 1 Entity Major operational unit within business unit University of Wyoming 2 Natural Account Specific type of asset, liability, equity, revenue, and expense 3 Fund Class Source of funds for transactions Supplies Office Expense Restricted Nonexpendable 4 Fund Source Specifies the exact nature of the source of funds Designated Funds 5 Organization Unit responsible for or affected by transaction 6 Expense Classification 7 Program Purpose of transaction Associates transactions with a formalized set of activities College of Business- Dean s Office Academic Support MBA Program 8 Activity Tracking mechanism for purposes and activities Conference A 9 Future Currently not used, allows for flexibility N/A 20

21 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Entity Segment An Entity is a subset of the University reporting unit that is either a separate legal entity, a separately funded state agency or is required to issue its own financial statements. The University of Wyoming is the overall Business Unit and all of the entity segments will roll up to that value to create our annual financial statement. Most transactions will fall within the UW value, 10, unless your department falls into one of these specialized entities, in which case select one of the other options, will be selected. University of Wyoming Summary 10 University of Wyoming 11 Alumni Association 12 Cowboy Joe Club 13 Wyoming Public Media 15 Bison Run Medical Education Summary 21 University of Wyoming Medical Education Enhanced Oil Recovery Summary 31 Enhanced Oil Recovery Institute Complete list of Entities 21

22 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Natural Account Segment The natural account segment captures the true nature of the transaction you are recording. This is either revenue-producing, expenditure, asset that is owned, or liability that is owed. Natural Account Assets Deferred Outflows of Resources Liabilities Deferred Inflows of Resources Net Position Total Operating Revenues Non Operating Revenues Total Operating Expenses Non Operating Expenses Description A resource with economic value that the University owns or controls with the expectation that it will provide future benefit. A consumption of net assets that is applicable to a future reporting period. The University s financial debt or obligations that arise during the course of its business operations. An acquisition of net assets that is applicable to a future reporting period. The value of one's investment position, calculated as the position's market value less the initial cost of entering that position. Revenue generated from the University s day-to-day business activities. Revenue which is inconsistent and not planned as a part of annual business operations. An expense the University incurs through its normal business operations Expense incurred by a business that's unrelated to its core operations 22

23 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Natural Account Segment 23

24 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Fund Class Segment The Fund Class is the high level classification of the source of funds for a transaction. There are 5 Fund Class categories with detailed values under each. The general category are: Fund Class Value Description 1 Unrestricted 2 3 Restricted Expendable Restricted Nonexpendable 4 Plant Funds 5 Agency Funds , 110, 200, 205, 250, , 305, 310, 350, 355, 360, 400 & & , 701, 702, 703, 704, 720, 750 & 770 All other funds not defined below which may be used for general operations of the University. These assets may be fully expended but only for specific purposes identified by the donor or external entity providing the funds Endowment and similar type funds in which donors or other third parties have stipulated, as a condition of the gift, that the principal be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to principal. These represent the university s net investment in campus facilities, equipment, and infrastructure, net of outstanding debt obligations related to these capital assets. These are funds held at the university on behalf of another entity for which UW has custodial responsibility. They are not used for university operations and show the movement of assets and liabilities. Complete list of Fund Classes 24

25 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Fund Source Segment The Fund Source segment expands upon the 5 Fund Class categories, specifying the exact nature of the source of funds, e.g. specific reserves, designated funds, endowments, gifts, etc. Unrestricted Operating Designated Operating General Designated Operating Faculty Development Custodial Student Loans Bantjes Adrian Memorial Fund African American Studies Program Burger Amy & Eric Fund Westedt Fund American Studies Scholarship Bailey Energy MBA Scholarship Berry Conservation Fellowships Ag Experiment Station Research 25

26 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Fund Source Segment It is important to note that there is an interdependent relationship between fund class and fund source. Not all fund classes can be used with funds source and vise-versa. Below is an example: Fund Source Type Entities Natural Account Fund Class Fund Source Org Expenses Program Activity Future Unrestricted Operating Fund Class & Fund Source must coordinate Designated Operating Sponsored Project Funds Contributions Non Operating

27 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Organization Segment The Organization segment refers to the Department or unit (UW Accounting Office, Mathematics department) where the transaction originates. An Organization represents a unit where Human Resources can identify staff, performance reviews can take place, and business is transacted. Each individual organization rolls up to a Division and are organized in a hierarchy. General University Operations Division Office of the President Division Internal Audit Division Academic Affairs Division Administration Division Student Affairs Division Information Technology Division Institutional Advancement & UW Foundation Division Governmental & Community Affairs Division Research & Economic Development Division General Counsel Division Intercollegiate Athletics Division 27

28 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Organization Segment The university has made it a priority and a goal to align the organizations detailed in all of the enterprise systems across the University. Example: Chemistry means the same thing in HR, Banner, etc. As a result, there will be a high level of scrutiny and refinement placed on the organization segment. There will be a formalized process to add or removed an organization and will likely involve multiple stakeholders (i.e. HR Finance, Budgeting and Planning, etc.). The procedure to request an addition or removal of an organization is outlined on the Budget Office website, here. Complete list of Organizations 28

29 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Expense Classification Segment The Expense Classification segment tracks the National Association of College and University Business Officers (NACUBO) defined functional expense classification. Expense classification is used to display expenses in UW s annual financial report. If it is not evident which Expense Classification value to use, please consult with the Accounting Office. If you are entering a non-expense Internal Allocations & Sales Rollup Internal Service Allocation Grouping (IDT) you will select 001 as the value for this segment. The default is 999 for all expenses, this MUST be changed to one of the expense categories. The high-level expense classification groups (hierarchy and roll-ups) include: Default Total Institutional Support Total Instruction Total Operations & Maintenance Total Research Total Scholarships & Fellowships Total Public Service Total Depreciation & Amortization Total Academic Support Total Auxiliary Enterprise Total Student Services Total Capital Projects Total Complete list of Expense Classifications 29

30 Value Expense Classification Description Expense Classification Examples 001 Default For NON-EXPENSE Internal Allocations & Sales Rollup Internal Service Allocation Grouping (IDT) transaction. 999 Default For all expenses, this MUST be changed to one of the expense categories listed below. 100 Instruction Expenses for all activities that are part of an institution s instruction program. Expense for credit and noncredit courses; academic, vocational and technical instruction; remedial and tutorial instruction; and regular, special and extension sessions. 200 Research Expenses for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Includes expenses for individual and/or project research as well as that of institutes and research centers. 305 Public Service Expenses for activities established primarily to provide non-instructional services for the benefit of individuals and groups that are external to the institution. These activities include community service programs and cooperative extension services. Included in this classification are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting and similar non-instructional services to particular sectors of the community. 500 Student Services Expenses incurred for offices of admissions and the registrar and activities that, as their primary purpose, contribute to student s emotional and physical well-being and intellectual, cultural and social development outside the context of the formal instruction program. Includes expenses for student activities, cultural events, student newspapers, intramural athletics, student organizations, counseling and career guidance, student aid administration and student health service (if not operated as an auxiliary enterprise). 550 Institutional Support Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Expenses for central, executive-level activities concerned with management and long-range planning for the entire institution, such as the governing board, planning and programming operations, and legal services; fiscal operations, including the investment office; administrative information technology; space management; employee personnel and records; logistical activities that provide procurement, storerooms, printing and transportation services; support services to faculty and staff that are not operated as auxiliary enterprises; and activities concerned with community and alumni relations, including development and fundraising. 30

31 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Total Operating Expenses The use and coding of expense category for each transaction directly impacts the university's financial statement and reporting. For instance, the snapshot below is from page 23 from the university's 2016 audited financial statement: Link to Statement 31

32 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Program Segment The Program segment pertains to the unique specialization (e.g. Recruitment, International Studies, Help Desk) within the Department, School, etc. Values will be grouped by division/department/unit, but can be used by departments from across campus if applicable. As of today, there are approximately 500 programs. Programs are used for institution wide and/or division/subdivision reporting. Program code can have meaning across multiple organizations (i.e. commencement) Programs are to be used for their intended purposes and should not be modified. The procedure to request an addition or removal of an Program is outlined on the Budget Office website, here. Complete list of Programs 32

33 Natural Fund Entity Fund Class Account Source 5 Organization 7 8 Classification Program Activity 6 Expense Activity Segment The Activity segment provides additional opportunities to further differentiate a transaction for departmental or unit reporting purposes. This segment is definable by the department by using the generic values that have been loaded to the system - there are placeholders for Project 1, Project 2, etc. Activity 1, Activity 2, etc. Game 1, Game 2, etc. Exhibit 1, Exhibit 2 and assigning what that value means to your department. Departments are not able to add their own specific values to the system. As of today, there are approximately 1100 activities. The procedure to request an addition or removal of an activity is outlined on the Budget Office website, here. Complete list of Activities 33

34 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 34

35 WyoCloud Planning and Budgeting The University of Wyoming (UW) is leading an effort to modernize the budgeting function within the WyoCloud Project. As a part of the effort, UW has implemented a new system called WyoCloud Planning and Budgeting as the platform to support planning activities. WyoCloud Planning and Budgeting will support the business processes related to the University s budget model and will aid in the creation of budgets and forecasts. 35

36 WyoCloud Planning and Budgeting WyoCloud Planning and Budgeting provides the University with the ability to modernize, streamline, simplify, and enhance the University s integrated budgeting, planning, and forecasting processes. The primary objectives of the WyoCloud Planning and Budgeting system are to: Providing end users a specific set of processes and procedures to perform their annual and multi-year budgeting and forecasting plans, with the flexibility to grow with the University s changing needs. Integrate with existing data sources to provide users with consistent and timely data. Supply aggregated reporting and analysis of the budget and forecast across the University. Facilitate Budget vs Actual variance analysis and allow for more frequent forecasting updates based on the reallocation of University resources. 36

37 Unrestricted Operating Suppressed Fund Class- Source Organization Program Activity Natural Accounts Data is organized in WyoCloud Planning and Budgeting by the Chart of Accounts segments. 37

38 Unrestricted Operating Un-Suppressed Fund Class- Source Organization Program Activity Natural Accounts 38

39 Forecasting Forecasting at UW is done on a quarterly basis. 39

40 Financial Reporting Financial Reporting is available in WyoCloud Planning and Budgeting to help develop the annual budget and forecast. Reports can be shared with consumers to help them view budget and forecast development. 40

41 FY19 Budget Development Timeline FY19 Budget Development Timeline January 22 nd WyoCloud Planning & Budgeting (WyoCloud Planning) module released/opened February 9 th 5:00pm Non-Academic Affairs Units FY2018 forecast due to the Budget Office February 16 th 5:00pm Academic Affairs Units FY2018 forecast due to the Budget Office March 5 th 8:00am Non-Academic Affairs Units FY2019 budgets due to the Budget Office March 7 th Materials due to Board of Trustee s for FY2018 budget amendments March 12 th 8:00am Academic Affairs Units FY2019 budgets due to the Budget Office March 12 th Data migration to Budget Office version in WyoCloud Planning March th Budget Office review March 19 th Data migration to Executive Council version in WyoCloud Planning March 19-April 6 th Division/College budget review sessions with President, VPs, and Deans March rd Board of Trustee s meeting (Main topic: FY2018 budget amendments) April 9 th 8:00am Data migration to President's version in WyoCloud Planning April 9-13 th President's review April 16 th Data migration to Board of Trustee s version in WyoCloud Planning April 16 th FY19 Budget materials are due to the BOT May 7-8 th Division & College budget hearings with Board of Trustees Budget Committee June 13 th Board of Trustee s conference call June 29 th Data migration to Final BOT approved version in WyoCloud Planning & FY2019 Budgetary Control in WyoCloud Financial Management 41

42 Role Budget Office Consumers Planning users VPs, Executives, and Deans President Roles and Responsibilities Responsibility Responsible for kicking off the annual budget and driving it forward. The Budget Office will serve as the administrators for the WyoCloud Planning and Budgeting system and be responsible for maintaining and updating the system. Work with Planning users in preparing their budgets, but will not have access into the WyoCloud Planning and Budgeting System. Responsible for developing their respective budgets and reserves in WyoCloud Planning and Budgeting. Planning users are also responsible for working with other UW stakeholder to collect and review budget data to finalize the annual budget. Work with Planning users to approve Position and Operational budgets for annual budget. Works Planning users to approve budget amendments. Makes the final approval of annual budget and budget amendments before submission to the Board of Trustees. Board of Trustees Approve UW-wide annual budget and budget amendments. 42

43 Annual Budgeting Process FY2019 UW Budget Process Flow Budget Kick off and Data loads Jan 1 st - Jan 22 nd Develop Forecast Jan 22 nd - Feb 16 th Develop Budget Feb 16st - March 12th Review and Finalize Budget March 12th June 29th Budget Variances and Forecasting August 1st Board of Trustees Approve UW-wide budget President Submits proposed budget to Board of Trustees VPs and Deans Departments Executive Council Hold budget planning kick-off meetings Develop FY18 Forecast Develop Position Budget Develop Operational Budget by Fund Class: 1. Unrestricted 2. Designated Operating 3.Restricted Grants and Contracts 4. Restricted Gifts and Endowments 5. Other (Maintenance, Capital) Review Reports: Total Budget and Position Budget Review and Finalize Budget Communicate budget decisions Develop Forecast Budget Office Budget process kicks off with call letter Prepare WyoCloud Planning and Budgeting for Annual Budget Open WyoCloud Planning and Budgeting. Send out notification Develop Tuition Revenue Budget Load approved budget into Wyocloud Financial Management Reporting Reviewing Future Year Budgets (real time budget numbers) BICS Reviewing Current Year Budget WyoCloud Planning and Budgeting Reviewing Forecasts

44 Budget Office Policy and Procedure Updates Implementing WyoCloud Planning and Budgeting provided an opportunity for the Budget Office to evaluate and update UW s policies and procedures related to budgeting. Requesting new Organization and Chart of Account program and activity values Requests for new organization, programs and/or activity values need to be submitted to the Budget Office for review and approval. The procedure is located on the Budget Office website ( Budget regulation Prior to the beginning of each fiscal year, each Administrative Officer shall present to the President and Board Budget Committee the proposed budget for their Division for the upcoming fiscal year. No expenditures can be charged to the budget for the next fiscal year until final Board approval of the Operating Budget Reserve fund balances/ carry forward New policy in final stages of approval with General Counsel. Internal allocation and transfer request Inter-Unit and Intra-Unit Allocations need to be submitted to the Budget Office for review and approval. Upon approval, the request will be sent to the Accounting Office to be posted. Surplus property disposal To provide guidance on the proper disbursement/disposal of university surplus property, general sales revenue will be distributed 80%/20%. 80% to the Dean/Division and 20% will remain with Material Services. New budget manual To guide your unit through the new budgeting process. 44

45 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 45

46 Questions?

47 Agenda Course Introduction Intro to Planning, Budgeting, and Forecasting Chart of Accounts Budgeting and Forecasting at UW Questions and Answers Summary and Next Steps 47

48 Course Objectives In this course, you have been introduced to budgeting and forecasting at the University of Wyoming. You have learned about: The concept and definitions of planning, budgeting, and forecasting The Chart of Accounts at UW A high-level overview of the WyoCloud Planning and Budgeting system A high-level overview of the budgeting and forecasting process at UW Next steps 48

49 Next Steps Depending on your role in the budgeting and forecasting process you will have the opportunity to attend the following trainings to prepare you for completing your budgeting and forecasting responsibility. Course Description Delivery Introduction to WyoCloud Planning and Budgeting Navigating WyoCloud Planning and Budgeting WyoCloud Planning and Budgeting Process Open Labs Introduction to the new system, terms, features, and security groups. Logging in and navigating in WyoCloud Planning and Budgeting. How to perform budgeting process tasks and approvals in WyoCloud Planning and Budgeting. Technical and process experts will be available to answer questions. Additionally, Users can practice performing budgeting tasks in WyoCloud Planning and Budgeting WyoCourse WyoCourse Live, Instructor- Led Training Open Lab 49

50 Thank You!

51 Appendix

52 Expense Classification Segment Value Expense Classification Description 001 Default For NON-EXPENSE Internal Allocations & Sales Rollup Internal Service Allocation Grouping (IDT). 999 Default For all expenses, this MUST be changed to one of the expense categories listed below. 100 Instruction 200 Research 225 Agriculture Experiment Station 305 Public Service 315 University of Wyoming Extension 400 Academic Support Expenses for all activities that are part of an institution s instruction program. Expense for credit and noncredit courses; academic, vocational and technical instruction; remedial and tutorial instruction; and regular, special and extension sessions. Expenses for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Includes expenses for individual and/or project research as well as that of institutes and research centers. This is a subcategory of Research and applies to the research activities of the Agriculture Experiment Station. Expenses for activities established primarily to provide non-instructional services for the benefit of individuals and groups that are external to the institution. These activities include community service programs and cooperative extension services. Included in this classification are conferences, institutes, general advisory services, reference bureaus, radio and television, consulting and similar non-instructional services to particular sectors of the community. This is a subcategory of the Public Service and applies to the activities of the Cooperative Extension Service. Expenses incurred to provide support services for the institution s primary programs of instruction, research, and public service. It includes provision of services for libraries, museums and galleries, educational media services, ancillary support, academic administration, academic personnel development and academic support information technology. 52

53 Expense Classification Segment Value Expense Classification 500 Student Services Institutional Support Operations and Maintenance Scholarships and Fellowships Description Expenses incurred for offices of admissions and the registrar and activities that, as their primary purpose, contribute to student s emotional and physical well-being and intellectual, cultural and social development outside the context of the formal instruction program. Includes expenses for student activities, cultural events, student newspapers, intramural athletics, student organizations, counseling and career guidance, student aid administration and student health service (if not operated as an auxiliary enterprise). Expenses for central, executive-level activities concerned with management and long-range planning for the entire institution, such as the governing board, planning and programming operations, and legal services; fiscal operations, including the investment office; administrative information technology; space management; employee personnel and records; logistical activities that provide procurement, storerooms, printing and transportation services; support services to faculty and staff that are not operated as auxiliary enterprises; and activities concerned with community and alumni relations, including development and fundraising. Expenses for the administration, supervision, operating, maintenance, preservation and protection of the institution s physical plant. Expenses include Janitorial and utility services, repairs and ordinary or normal alternations of building, furniture and equipment; care of grounds; maintenance and operation of buildings and other plant facilities; security; safety; hazardous waste disposal; property, liability and all other insurance relating to property; space and capital leasing; facility planning and management; and central receiving. Generally, institutions report most scholarships and fellowships as tuition discounts and allowances. Other student awards that are funded by third parties are agency transactions and do not result in revenue or expenses for the institution. Expenses for scholarships and fellowships in the form of grants that neither require the student to perform service to the institution as consideration for the grant, nor require the student to repay the amount of the grant to the funding source. This classification excludes student awards that are made in exchange for services provided to the institution, such as graduate and teaching assistantships and student work-study programs. 53

54 Expense Classification Segment Value Expense Classification Depreciation and Amortization Auxiliary Enterprise Description Allocation of the cost of capital assets over the useful life of the asset. An auxiliary enterprise exists to furnish goods or services to students, faculty, staff, other institutional departments, or incidentally to the general public and charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. Expenses relating to the operation of the auxiliary enterprise are coded with this code. 750 Athletics Expenses for intercollegiate athletics. 850 Capital Projects Expenses incurred in the construction, renovation or major repair of capital assets. 54