for the VT Department Fiscal Manager Session ONE
- Why this course?
- What is E&G?
- What is Overhead?
- What is Sponsored?
- What is an Auxiliary?
- The Big Picture
- A word about Salary charges
- Non-Sufficient Funds control
- Faculty can see their Banner Financials
What this training is NOT… ¾ Thou Shalt do it this way ¾ A complete description of ALL types of money ¾ Banner Finance training ¾ VT Foundation training
What this training IS… General education about the main types of money A glimpse of the big picture of VT funding sources Sharing information with other departments Practical knowledge for department business managers
You are responsible for at least some combination of these: E&G Sponsored Overhead Cost-Share VTF Research Foundation SCHEV Tuition Work Study Engineering Fee Cash Auxiliaries Local Funds Various 208 vs. 229 Fed vs. State Scholarships & Continuing Institutional Service Centers Fellowships Education Allowances
Each one is a different COLOR, and each has its own ecosystem:
- How much do I have?
- Where does it come from?
- What (or Who) is it committed to?
- What can I spend it on?
- Should I charge salary to it?
- Does it have time restrictions?
- What do I do at year-end?
- Who can answer questions?
From Wikipedia, the free encyclopedia
Fund accounting is an accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments. In this system, a FUND is a self-balancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations. In plain English… Every dollar that comes in must be spent to the purpose for which it was intended
E&G funds (also called 208 funds) hold “state” money intended for supporting the instructional mission of the university Every department has separate E&G fund numbers in place for salaries, operating, and budget distribution, e.g., 121047 – Operating 121048 – Salaries 124789 – Dept 108 Budget Pool 125303 – Dept 108 Salary Pool
Departments are free to create additional E&G fund numbers for specific purposes like Startups, or operating expenses in categories they want to control separately, e.g., 116796 – MSE Staff Salaries 116206 – MSE Wages 175078 – Foster Start Up Fund 176567 – MEPS Expenses
Budget is allocated from scratch every July, and must be used by June 30 (Unspent balances can sometimes be carried forward to the new fiscal year)
Pays salaries of regular (unrestricted) faculty and staff, plus GTAs 85% of money is used for salaries and fringes Salary budgets are based on Position Allocations Remaining 15% is spent on basic department operating costs.
Banner Form Fund Organization
FGIBAVL 1000 0108
- “Educational and General”
- The “State” portion of the budget
- Allocated by the General Assembly in the biennial Appropriations Act
- Negotiated in Richmond during ODD years to cover a two- year period; e.g., in 2015 they passed the 2016-2017 budget
- 2016-2017 covers two fiscal years:
¾ FY2016 – July 1, 2015 to June 30, 2016 ¾ FY2017 – July 1, 2016 to June 30, 2017
- E&G money comes in two flavors:
¾ University Division (Agency 208) ¾ Cooperative Extension/Agricultural Experiment Station Division (Agency 229)
The General Fund is tax money collected by the state The Non-General Fund is primarily Tuition and Fees Some Federal Funds are provided for Agency 229
Agency 208 Agency 229
Source: Virginia Tech Authorized Budget Document 2015-2016
Tuition has replaced state tax dollars as the primary source of E&G funding
76%
55%
45% 24%
Source: Virginia Tech Authorized Budget Document 2015-2016
State Support for students has gone down dramatically
Source: Virginia Tech Authorized Budget Document 2015-2016 www.obfp.vt.edu
Authorized Budget Document
Overhead funds hold money that came from research sponsors The money is intended for general support of the research endeavor Every department has a default overhead fund number, e.g., 230612 – Research Returned Overhead
Departments are free to create additional overhead fund numbers for specific purposes like payroll or credit card kickouts, PI overhead share, startups and other categories they want to control separately, e.g., 232900 – Payroll Corrections 232566 – Hendricks Overhead 232769 – Foster Startup 220437 – Fulbright Scholar - Murayama 233414 – International Collaboration 234769 – Holden Flood – 09-01-14
Terminology: OVERHEAD = INDIRECT = F&A (Facilities & Administrative)
Most research grants and contracts budget both DIRECT and INDIRECT charges to the sponsor
Why? Because federal regulations restrict what can be DIRECTLY charged to a research project
And therefore the INDIRECT allows us to collect money from a sponsor to cover other costs not directly charged
The INDIRECT money collected from the sponsor becomes OVERHEAD money transferred monthly to your department as an automatic budget transfer
- Budget is automatically transferred to departments on a monthly basis
- The amount is based on sponsored project expenditures
- You have a main overhead fund in your department that receives the money; you must make further distributions yourself
- Unspent balances carry over AUTOMATICALLY at year-end
- The money is intended for general support of research (not specific to a single project); however there are very few restrictions on spending it
- Most departments distribute a share of overhead to faculty and let them spend it how they like; the rest is used for general department support
- Avoid paying salary on overhead because you must also pay the fringes (currently 34% on faculty, 51% on staff)
- In the colleges, salaries and fringes account for 38% of overhead spending (vs. 85% of E&G spending)
Banner Form Fund Organization
FGIBAVL B80303 0108
For new E&G funds, contact Courtney Long (cblong4@vt.edu) or Parker Mabe (phmabe@vt.edu) For new Overhead funds, contact Alicia Houchins (houchins@vt.edu) If the fund is for an individual faculty, remember to name that person as the FINANCIAL MANAGER so they can see the fund in myVT! Once the fund is set up you can move budget money in or out of it freely (as long as you stay within E&G or Overhead) You can move budget around within your own department -- OR – transfer it FROM your department to another department Examples of funds created at the department’s discretion:
- Faculty returned overhead
- Faculty startups
- Student projects or design teams
- Special travel allocations
- Recruiting costs (sometimes can be reimbursed)
- Special spending categories (e.g., computing, machine shop, seminars)
- Operations for individual labs
- Career award tracking
Some departments have a single ORGN code:
DEPARTMENT ORGANIZATION
0011 Horticulture 001100 Horticulture 0315 Dairy Farm 031500 Dairy Farm 0152 Building Construction 015200 Building Construction 0074 Management 007400 Management 0108 Materials Science & Engineering 010800 Materials Science & Engineering 0048 English 004800 English 0049 Mathematics 004900 Mathematics
Many departments have multiple ORGN codes:
010100 Aerospace and Ocean Engineering 0101 Aerospace and Ocean Engineering 010101 CREATe 010102 AOE Hume Collaboration
007900 School of Performing Arts School of Performing Arts & 007901 SOPA - Theater 0079 Cinema 007902 SOPA - Music 007903 SOPA - Cinema
005300 Psychology 005301 Ctr for Research in Health Behavior 0053 Psychology 005302 Child Study Center 005303 Psychological Services Center
Many departments have multiple ORGN codes: 018300 VT Carilion (VTC) Res. Institute 018301 VTCRI - Loan 0183 VT Carilion (VTC) Res. Institute 018302 VTCRI Friedlander Lab 018303 VTCRI King-Casas Lab 018304 VTCRI Montague Lab
010700 Mechanical Engineering 010701 Vibration & Acoustics Laboratories 010702 Ctr For Intelligent Materials-CIMSS 010703 Vehicle Systems & Safety 010704 ME - Energy Group 010705 ME - Turbo Group 0107 Mechanical Engineering 010706 ME - Varied Research Group 010707 ME - Injury Biomechanics 010708 ME - Energy Harvesting Group 010709 Nuclear Engineering 010710 Dynamic Systems Modeling & Control 010711 Center for Tire Research
“Sponsored Programs” or “Sponsored Research” or just “Sponsored” funds hold money provided by external sponsors (government or commercial) for specific research grants or contracts Some examples: 450195 – Magnetic Sensors for Detection 450280 – New Solid Oxide Fuel Cell Interconnect Coatings 458391 – Characterization of Additive Manufacturing Powders
Each Sponsored FUND falls under a parent GRANT, which has its own period of performance, statement of work, budget, and contract stipulations
Financial management of Sponsored funds is governed by federal regulations and “Uniform Guidance”
Annual Sponsored Research Expenditures 2014 thru 2016
Local $2M Pratt $1M VT Foundation $10M Other $12M State $14M
Federal $216M Commercial $30M Commercial $30M State $14M VT Foundation $10M Local $2M Pratt $1M Federal $216M Other $12M www.research.vt.edu/professional-development/programs www.research.vt.edu/professional-development/archive
“Auxiliary Enterprises” are non-instructional units in the university that provide extra services and operate as separate self-supporting financial entities.
Auxiliaries
Unit Amount Percent Dorm & Dining 122 38% Athletics 60 19% Electric Service 34 11% Telecommunications (CNS) 20 6% The Inn at Virginia Tech 11 4% Student Health Services 11 3% Rec Sports 9 3% Center for the Arts 8 2% Squires 8 2% Parking 6 2% Others 30 9% Total $ 321 100% Dollars in millions
Auxiliary fund numbers hold revenue and expense figures for specific purposes within a single Auxiliary unit, e.g., 150012 – Revenue, Tailor Shop Auxiliary 153018 – Tailors Operation 153443 – Tailor Uniform Cost 154010 – Aux 710 (Tailor Shop) Budget Pool
In addition to tracking Expenditure Budget vs. Actual, the Auxiliaries must also track Revenue Budget vs. Actual, and balance expenditures to revenue
Auxiliary Fees, Plans, Budgets, and other operational procedures are reviewed and approved annually by the VT Chief Financial Officer
Category Amount 208 E&G 357.0 Sponsored 198.9 Overhead 25.7 Tuition 15.6 VTF Research 10.1 College of Service Centers 8.9 Agriculture
EXCLUDED
SCHEV 7.4
229 E&G 7.3 Study Abroad 4.0 Various 3.3
IDDL 2.4
Cost Share 2.1 Federal 1.6 Local funds 1.4 Other 0.8 Dollars in millions
College of Agriculture
EXCLUDED
College of Agriculture
EXCLUDED
Category Amount Sponsored 45.3
229 COOP E&G 28.6
208 E&G 24.2