Research Financial Summary Report by FundFY

1
Research Financial Summary Report by Fund/FY

• August 2007

2
Agenda

• Terminology Review
• Report Review
• Report Objective
• Benefits
• Selection Criteria
• Layout and Subtotals
• Column Explanation
• Time for Further Analysis
• Key Points
• Note To enhance your review of this training,
  print out the
• Research Financial Summary Report job
  aid.

3
Terminology Review

• Cost Reimbursable Awards (CRB)
• Awards that are billed based on actual
  expenses incurred and posted to the General
  Ledger includes Letter-of-Credit awards
• Prepaid Awards (PPD)
• Awards that are NOT billed on actual expenses
  (payment may come early or in specified amounts)

4
Terminology Review

• Revenue
• Recognition of income when an expense is
  incurred
• Accounts Receivable (AR)
• Billing that has not been paid
• Billing
• Tracking of (1) invoices for expenses
  incurred, (2) installment or
  scheduled payments due, or (3) milestone
  payments (e.g., clinical trials)
• Unbilled Accounts Receivable (UAR)
• Recognized revenue that has not been billed to
  the sponsor
• Deferred Revenue
• Prepayment amount that is utilized as
  expenses are incurred

5
Report Objective

• On a single report, be able to analyze by fund
• Budget to Expenses
• Expenses to Revenue
• Expenses to Billing
• Billing to Payments
• Deferred Revenue to Billing Expenses

6
Report Benefits

• Provides a picture of Fund activity for
• RSA and Fund Manager in departments and schools
• Central Office Financial Manager
• Answers key questions for Fund-FY as well as each
  DPA or project associated with the Fund
• How much have we spent and what is the remaining
  budget?
• How much revenue have we earned?
• How much have we billed the sponsor and how much
  has the sponsor paid?
• Provides a tool for RSA to review Fund with the
  PI
• Discuss status
• Highlight red flags (e.g., overspent, behind on
  payments)

7
Report Criteria
8
Report Format

• The report is sorted by Fund-FY. It includes
• Lines for each DPA and no DPA
• Subtotals for each Fund Year,
• Subtotal for the Fund
• The report has 12 columns of information and may
  best be printed and reviewed in a PDF or Excel
  format.

9
Total Budget Column
Budget is the authorized spending amount and,
ultimately, how much revenue we should recognize.
If spending exceeds budget, we do not recognize
revenue. Total Budget column is the sum of
appropriated budget transactions in the Expense
NCA range. Budget is impacted by STIP and
inter-campus subcontracts.
10
Total Expenses Column

• Total Expenses column is the sum of all financial
  transactions in the Expense NCA range.
• Liens are not included.

11
Budget Balance Column
12
Pre-RAS Revenue Column

• Pre-RAS Revenue column is the sum of financial
  transactions posted to Revenue NCAs through
  03/2006. The primary purpose is for converted
  awards.
• For new awards added after RAS
• implementation, this column should be
• 0.00.
• Before RAS, revenue was credited
• to the Fund-FY only.

13
Total Revenue Column

• Total Revenue column is the sum of financial
  transactions posted to Revenue NCAs from the
  beginning of the award through the report date.
• Total Revenue includes Pre-RAS Revenue.
• After RAS, revenue is credited to the
• Fund-FY-DPA (when an expense is incurred).
• With LOC awards, FA is calculated and
• revenue is recognized only on expenses that
• have been paid.

14
Total Revenue Column
15
Converted AR Column

• Converted AR column is the sum of accounts
  receivable conversion transactions where
• Journal ID equals the RAS conversion value
• of 10RASCNV8 (on Cost Reimbursable)
• Journal Date equals 04/21/2006
• NCA equals a RAS AR NCA
• Converted AR represented either
• (1) Amount to be paid by sponsor
• (2) Overdraft that needed to be cleared by
  department
• Ultimately, there should have been a payment
  applied or a credit bill.

16
RAS Billing Column
17
RAS Applied Payments Column

• RAS Applied Payments column is the sum of all
  payment transactions in RAS where
• Journal ID equals A30
• Journal Date is from 04/2006 through the
• report As of Date (usually current month)
• NCA equals a RAS AR NCA
• Note In RAS, billing and accounts receivable are
  tracked using Fund-FY-DPA.

18
AR Adjustments Column

• AR Adjustments column is the sum of all
  adjustment transactions in RAS where
• Journal ID equals A40
• Journal Date is from 04/2006 through the
• report As of Date (usually current month)
• NCA equals a RAS AR NCA
• Note Adjustments include small balance
  write-offs and other maintenance adjustments such
  as pre-conversion payments that could not be
  applied against a specific invoice.

19
AR Balance Column
20
Unbilled Balance Column

• Unbilled Balance column is the sum of all
  unbilled (UAR) transactions in RAS where
• Journal Date is from 04/2006 through the
• report As of Date (usually current month)
• NCA equals a RAS UAR NCA
• This amount has not yet been billed to the
  sponsor.

21
Unbilled Balance Column

• For LOC awards, which are billed
• twice-weekly, Unbilled Balance is
• probably zero.
• For Cost Reimbursable awards
• Unbilled Balance should
• be the total of expenditures (and
• revenue) since the cut-off for the
• last billing.
• For Prepaid awards, Unbilled
• Balance should be zero.
• If Unbilled Balance is a credit amount (-), cost
  transfers were posted to offset overdrafts. EMF
  will need to match cost transfers to overdrafts
  prior to billing.

22
Deferred Revenue Column
23
Time for Further Analysis

• Run the GL Transaction Detail report to research
  the following situations
• Budget Balance column is a debit (over budget).
• Is appropriation correct? Is the award overspent?
• Total Expenses column is greater than Total
  Revenue. Find out when and why the award stopped
  recognizing revenue.
• Is the award overspent? Is the billing limit
  correct?
• AR Balance is high, and RAS Applied Payments is
  zero or very low. Find out why the sponsor isnt
  paying.
• Is a report or other deliverable holding up
  payment?
• Unbilled Balance has a debit amount.
• Was the sponsor billed in the current open
  period?
• Contact your EMF Service Team if you thing there
  is a problem.

24
Key Points

• The Research Financial Summary Report by Fund/FY
  provides a picture of Fund activity for the
• RSA and Fund Manager in departments and schools
• Central Office Financial Manager
• Only the departmental owner of the fund will be
  able to access fund information.
• Financial transactions that flow through
  Unexpended Balance NCA are not reflected in the
  report.
• STIP
• Inter-campus transactions
• Capital lease re-classification from expense to
  unexpended balance
• Note The Budget column will include these
  transactions.

25
Key Points

• Make lists of Funds for a PI to use in running
  the Research Financial Summary Report by Fund/FY.
• Make lists for each of the RAS NCA types to use
  in validating or researching with the GL
  Transaction Detail report
• Revenue
• Unbilled Accounts Receivable (UAR)
• Accounts Receivable (AR)
• Deferred Revenue

26
Job Aids

• Research Financial Summary Report by Fund/FY
• Training PowerPoint
• WebLinks Report Procedure
• Validation Reference
• Budget-Expense Impact of Intercampus Subcontracts
• http//acctg/OLFS/trainingarchives/jobaids.htm
• Revenue Cycle
• RAS Revenue Cycle Town Hall Presentation
• RAS Accounting Entries and Examples for Cost
  Reimbursable/LOC and Prepaid Awards
• http//acctg/extramural_funds/communications/index
  .htm

27
Questions

• PeopleSoft Help Desk 514-4100, Option 3
• General questions about the Research Financial
  Summary Report by Fund/FY and other WebLinks
  reports
• Your EMF Service Team
• Specific questions about an award