To: University Business Managers
From: Dennis Press, University Controller
Date: March 27, 2009
As you know, the budget controls for other trust funds will take effect on 04/01/2009. There are several budgetary issues that have been reviewed and discussed among Finance staff and colleagues from campus units. The purposes of these discussions have been to identify and implement process changes in order to enact the appropriate budget control standards and to provide methods for campus units to process personnel and non-personnel disbursements.
Trust Fund Budgets Based on Revenues Received (ABR 4)
A listserve email to Business Managers regarding Establishing Budgets for Certain ABR 4 Trust Funds was distributed on 03/18/2009. That document is linked again for your reference, and has a link to the trust fund budget forms to use if needed. Online capability for trust fund budget changes is not currently available.
As a reminder, this procedure applies to certain trust funds whose budget is increased based on revenues received each month (ABR 4 accounts). Only accounts with a negative budget balance available (BBA) would potentially require a budget revision form to be processed. A budget revision form for trust funds with a positive budget balance available is not necessary.
Salary encumbrances commit budget and impact BBA, so the accuracy of these encumbrances is an important issue. Salary encumbrances are calculated based on personnel actions approved, the FRS budget period attribute, and the FTE of the appointment. Specifically for contracts and grants and other trust funds, the salary encumbrance is calculated and posted in FRS based on the earliest of the three following dates:
- the End Date of the employee’s position,
- the Budget Period End Date for the FRS project account that funds the position, or
- the Remove-From-Source-Date OR the Scheduled-Source-End-Date in HRIS or EPAWeb respectively.
Note that use of the FRS Budget Period End Date applies primarily to project accounts such as contracts and grants that normally do not have a June 30 year-end. FRS accounts that operate on the June 30 fiscal year-end would use June 30 in the salary encumbrance calculation for item 2 above. The timing of the salary encumbrance updates in FRS depends on the source of the information. Salary encumbrances are updated in FRS for items 1 and 3 when an HRIS or EPAWeb action is approved. Salary encumbrances are updated in FRS for item 2 as part of the FRS month-end close process.
Campus units may elect to change the Remove-From-Source-Date or the Scheduled-Source-End-Date if necessary to reflect a more accurate ending date and a more accurate encumbrance in FRS for a funding source. An EPAWeb Funding Action can be submitted to modify the Scheduled-Source-End-Date. In HRIS, a Funding Action can be submitted to modify the Remove-From-Source-Date. Your HR Facilitator can provide additional information about processing actions through HRIS and EPAWeb.
Budget Monitoring Reports
To assist with budget planning, Deans and Vice Chancellors, or their representatives, will begin receiving automated monthly deficit reports via email beginning in April. These reports will be sent out soon after the beginning of every fiscal month and will list deficits by object code for all fund types.
For questions regarding your trust funds account budgets, please contact Kathi Wimmer in Accounting Services at 919-962-5606 or firstname.lastname@example.org. Thank you.