Basic Financial Workshop

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Basic Financial Workshop

• Available on Financial Services Website at
• http//finserve.byu.edu/files/archives/BasicFSWork
  shop.ppt

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Basic Financial Workshop
Kevin L. Walker, Director, Financial Solutions

• Douglas G. Belliston
• Director, Financial Accounting and Reporting

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• The joint mission of all BYU Financial Employees
  
• Promote effective use of Universitys resources
• Protect the assets of BYU
• Recognize our obligation to all University
  stakeholders who provide and use its resources

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Your Role in Internal Control

• Control and protect university assets, and
  promote their effective use

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Why Control?

• "Controls protect weak people from temptation,
  strong people from opportunity and innocent
  people from suspicion.
• (August1977 IIA magazine)

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Internal Control Basics

• Segregation of duties
• Separate the request, receipt, payment and review
  functions
• Dual signatures on all documents
• Knowledgeable approver, different from buyer or
  requestor
• Financial statement review by knowledgeable
  managers

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Are YOU an Effective Control?
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Financial Service Web Resources

• FS Web page http//finserve.byu.edu/index.jsp
• Navigation
• BYU homepage?
• Faculty Staff?, General Services? Financial
  Services
• Bookmark it!

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Financial Services Web Page

• Highlight Services Tab, Accounting sub-tab
• Controllers Desk Reference Questions
• Funds
• Resources ( support) that are classified into
  funds according to specified activities or donor
  objectives

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Financial Systems

• PeopleSoft - accounting software
• General Ledger, HR, Payroll, Purchasing,
  Receiving, Asset Management, Accounts Payable
• Business Objects (BOb) reporting software
• Flexible tool across multiple systems via the Web
• Extensity travel approval and reimbursement
• Kronos time management

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Financial Systems cont.

• Other limited use systems
• Folio searchable archived financial statements
• Imaging imaged financial documents
• UCA University receivable and billing system
• Cashnet cash and credit card processing
• Purchasing Card P-card limited use credit
  card purchasing tool

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Fund Accounting

• Funds you will generally deal with
• 11 BudgetedSupport from Church
• 13 Academic RelatedAcademic Businesses
• 15 AuxiliaryCampus Business Operations
• 19 DesignatedDesignated by Management
• 23 RestrictedRestricted by Donors
• 31 Endowment Income/Spending
• Earnings from Endowments to be
  spent

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Speedtypes Accounts
Example Transaction 11241000-6100-FLSKS

• Speedtype 11241000 FundChem Engineering
• Account 6100 Supplies Expense
• Class (optional) FLSKS various classes may be
  used

• Speedtypes identify activities to be accounted
  for,8 digit long codes
• 2 digit Fund number 6 digit Department number
  -or-
• An 8 character Project number, beginning with a
  letter (accounting system ties project to the
  fund automatically)
• Accounts identify the nature of the item
  purchased or received
• Classes are optional user-defined identifiers

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Payroll and Kronos

• Hiring, the basics
• People may not work until formally HIRED
• Employment must get notice of Terminations
• Employee types
• Faculty and Administrative
• Staff employees
• Student hourly
• Student assistant (contract)

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Payroll and Kronos

• Staff Employees - must be paid for overtime over
  40 hours per week
• Student Hourly Employees - must be paid for hours
  worked, and OT if gt 40 hrs/week
• Kronos web based time entry and time clocks track
  hours worked

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Payroll and Kronos

• Kronos System
• Web based time entry
• Improved employee management and scheduling,
  identifies source of time recorded
• Allows office-based students/staff to record time
  from their computers
• Allows home-based workers to record time from
  home
• Others will use Kronos clocks

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Payroll and Kronos

• Management of Student time
• Non-resident alienlimited to 20 hours per week
  by Federal regulation
• U.S. resident studentslimited to 20 hours per
  week by University policy

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Cash Controls atBrigham Young University
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Good Cash Controls Provide a Safer Workplace for
Everyone
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Cash Controls Safety Equipmentfor Those
Handling Cash
Proper Documentation
Segregation of Duties
Custodianship of Cash Funds
Reconciliation
Frequent Deposits
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Cash Controls are Strengthened when Combined
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Cash Controls

• Safekeeping of Cash
• Assigned cash custodian
• Single custodian responsible for cash box
• Ideally dual custodians to receive mailed
  cash/checks
• Issuance of receipts, receipt logs
• Provides proof to payee
• Documents payments receivedmatch to recorded
  cash
• Independent cash counts
• Periodic and unexpected counts by a non-custodian
  ensures controls are in place and working

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Cash Controls

• Timely Deposits
• Frequent deposits
• Smaller, more frequent deposits are preferred
  because.
• Less cash is exposed to risk of loss

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Cash Controls

• Accurate Recording of Cash Transactions
• Cash receipt and recording
• Segregation of duties assures more than one
  person is involved in a transaction
• Documentation
• Proof of purpose, validity and accuracy of cash
  transactions
• Reconciliation
• Someone different than those that handle cash
• For a Summary of Cash Controls see
  http//finserve.byu.edu/files/docs/Cash20Controls
  .htm

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Purchasing Vendor Payment
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Purchasing

• We seek to obtain the Best Net Value for the
  University
• -Quality -Service
• -Price -Standardization
• -Life-cycle costing -Local availability
• -Warranty -P-card acceptance
• -Discounts -Technical support
• -Freight costs -Training
• -Timely delivery -E-business ready

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Purchasing Products and Services

• Many Tools to Purchase Products Services
• Fast Track Check Request
• Purchasing Card (P-card)
• Convenience Checks
• Purchase Orders (from Purchase Requisitions)
• Extensity Reimbursements
• Corporate Travel Card
• Petty Cash
• Agency Checks
• Limited Purchase Draft (LPDs)
• Campus Purchase Order (CPOs)

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Purchasing Tools

• Fast Track Check Request
• Initiated only by designated, trained Fast Track
  Buyers
• Only used for specific categories of products or
  service (see Purchasings website)
• Only for established Fast Track vendors

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Purchasing Tools

• Purchasing Card (P-card)
• VERY flexible tool assigned to specific people to
  purchase many kinds of products (not for
  services)
• 2,000 transaction limit (20,000/mo.)
• Not for travel (conference fees and first-night
  hotel are allowed)
• Electronically approved by cardholder and
  supervisor

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Purchasing Tools

• Convenience Check
• Same rules as Purchasing Card
• May not be used where P-card is accepted
• Penalty for misuse

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Purchasing Tools

• Purchase Orders (from Purchase Requisitions) Used
  for
• Requesting Purchasing to locate and negotiate
  with suppliers
• Transactions larger than 2,000 where items not
  allowed by Fast Track process
• Items not allowed by P-card (e.g. Hazardous
  materials)

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Purchasing Tools

• Purchase Requisitions

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Purchasing Tools

• Extensity Reimbursements
• System planned to go live during first quarter
• Approved travel reimbursements
• Approved reimbursement to employees for personal
  purchase of business supplies when other payment
  options are not feasible (use of Purchasing-card,
  Convenience Check recommended)

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Purchasing Tools

• Corporate Travel Card
• Encouraged for business travelers
• Automatic download of transactions to Extensity
  for reimbursement
• Corporate liability so personal items should not
  be paid with this card
• If inadvertently paid, may be excluded from
  Extensity reimbursement

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Purchasing Tools

• Petty Cash
• Take money to purchase items where P-card cannot
  be used and return the receipt
• Count of cash plus receipts always equal to total
  authorized Petty Cash amount
• Change Funds are NOT petty cash and authorized
  balance must ALWAYS equal count of cash

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Purchasing Tools

• Agency Checks
• Check stock controlled by campus clubs and
  certain other areas
• Funds NOT owned by University
• University provides accounting reports for
  transactions
• Check steward must control check stock under lock
  and key

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Purchasing Tools

• Limited Purchase Drafts (LPDs)
• Department controlled check that is being phased
  out during first quarter of 2004
• Was used for low dollar transactions and to
  reimburse for personal purchases of business
  supplies

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Purchasing Tools

• Limited Purchase Drafts (LPDs)

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Purchasing Tools

• Campus Purchase Orders (CPOs)
• Department initiated instrument to sell or
  buy items between two departments on Campus
• Requires signature of both buying and selling
  departments

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Purchasing Tools

• Campus Purchase Orders (CPOs)

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Brigham Young UniversityTravel Management
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Services

• Air, rental car, hotel booking for all campus
  personnel, students, and departments
• Travel Accounting
• Passport processing, photos, forms, etc.
• Group travel support for Athletics, Travel Study,
  Study Abroad, Sports Tours, Performing Arts
• Cliq Book a travel self-booking/search tool
• Searches all web reservations sites

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Services Cont.
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Travel System

• Extensity Travel System coming
• Planned first quarter 2004
• Electronic Travel application approval and travel
  reimbursement
• Business reimbursement for authorized purchases
  on behalf of BYU
• Direct deposit to employee bank account
• But until system is live..

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How To Travel On Business
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How To Travel On Business Cont.
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Web Page Support
WWW.BYU.EDU/TRAVEL
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Meal Per Diem Calculation
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Mileage Calculations
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Frequent Questions

• How do I get my cash advance check?
• Can I buy airline tickets on the internet?
• Do I need to fill out a Travel Application?
• How do I get reimbursed for expenses?
• Can multiple travelers go on the same form?
• What if I do not have a receipt for a claim?
• Can a student get a cash advance?
• Can students and employees use BYU Travel for
  personal travel?

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Basic Financial Workshop

• Douglas G. Belliston
• Director, Financial Accounting and Reporting
• 422-2734
• Doug_belliston_at_byu.edu

Kevin L. Walker, Director, Financial
Solutions 422-6639 klw_at_byu.edu
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QUESTIONS?