Financial Training Basics

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Financial Training Basics
Larry McFerson Guy Curtis Financial Accounting
and Reporting
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Definitions

• Cannibal Someone who is fed up with people
• Committee A body that keeps minutes and wastes
  hours
• Secret Something you tell to one person at a
  time
• Mosquito An insect that makes you like flies
  better
• Yawn An honest opinion openly expressed
• Accountant A good looking, intelligent, warm,
  sensitive, loving, human being with a great sense
  of humor ?

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Financial Training Basics

• This is basic training only, our purpose is
• Introduce some important financial concepts and
  common sense items
• Introduce some important systems with which you
  will interface, their names and basic
  functionality
• Specific system training will be done elsewhere
• Answer questions feel free to ask anytime!

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Financial Training BasicsClass will cover

• Internal Controls and Audit Functions
• Dealing with Student Information
• Financial System Basics
• Business Objects (BOb)
• Payroll and Kronos
• Travel Management Services
• Extensity
• Purchasing Goods and Services
• Fast Track
• Purchasing Card (P-Card)

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

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Internal Controls and Audit Functions

• You are needed as an important protector of
  University resources

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Internal Control (Simplified)

• Any and all procedures BYU personnel follow to
  make sure that what we want to happen does happen
  and what we do not want to have happen does not
  happen.
• "Controls protect weak people from temptation,
  strong people from opportunity and innocent
  people from suspicion.
• (August 1977 IIA magazine)

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Internal Control Safety Equipment
Segregation of Duties and well trained employees
Proper Documentation
Authorization and Approval (2 sets of eyes)
Review and Reconciliation
Security of Resources (cash, equipment, etc)
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Segregation of Duties

• A basic principle of good internal control is
  segregation (or separation) of duties.
• If one individual has control over the entire
  transaction process there is increased risk of
  concealing errors or inappropriate actions that
  could result in loss.

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Segregation of Duties Example
Approves the Disbursement
Write the Check
Reconcile the Bank Statement
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Authorization and Approval(2 sets of eyes)

• Primary Control used with many of our systems
• Most of you will be one of those sets
• This is an effective control only when there are
  two independent individuals reviewing or
  approving all transactions

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Dilberts Fraud Example
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Examples of fraud at BYU

• Stealing cash or property
• Buying items for personal use
• Inflated (or false) travel expense reports
• Hiring your own (undisclosed) vendor
• Directing fictitious vendor payments
• Passing bad checks
• Requesting duplicate expense reimbursement
• Failing to acknowledge personal expenses
• Substituting inferior products
• Taking vendor kickbacks
• Recent defalcations

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While fraud at BYU could cost from 1,000s to
millions, the more damaging costs involve

• Permanent Career Damage
• Loss of Professional Certification
• Legal Consequences or Sanctions
• Personal and/or Family Devastation
• Spiritual Devastation
• Loss of Church Membership

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Office of Compliance and Audit

• The Office of Compliance and Audit helps assure
  that internal controls are operating effectively
• Through their reviews they evaluate internal
  control weaknesses and recommend improvements
• They also analyze situations of possible fraud or
  abuse
• If you have concerns or questions regarding your
  role as a protector of BYU resources, please feel
  free to contact the Office of Compliance and Audit

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• Questions?

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Working with Student Information
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Student Employees often have access to Student
Information

• Student Financial Information using PeopleSoft
  Student Administration

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• Student Personal Information using AIM

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• Even grades using AIM

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CONFIDENTIAL !!

• All student information, except for limited
  Directory Information, is confidential and
  protected by the Family Educational Rights and
  Privacy Act of 1974 (FERPA).
• When in doubt, dont share any information with
  anyone except the student in question
• (even parents spouses).

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• PeopleSoft Student Administration and AIM
  application training as well as more detailed
  FERPA training is available through
• For PeopleSoft Student Administration
• Lori Hardman, Student Accountant Manager
  (lori_hardman_at_byu.edu) or 422-1625
• For AIM or FERPA
• Arrange for training through your line supervisor

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Financial System Basics
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Financial Service Web Resources

• http//Finserve.byu.edu
• Navigation From BYUs homepage?Faculty
  Staff?, General Services? Financial Services
  Bookmark it!

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http//finserve.byu.edu
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http//finserve.byu.edu
Please explore the contents of each of these
links.
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Access to Financial InformationUsing Business
Objects (BOb)

• Monthly Financial Statements delivered
  electronically
• Allows real-time transaction/balance inquiry
  (Queries)
• Security limits access to reports and BOb Queries
  
• Your assignment may warrant access
• Manager/Contact people may delegate security
  access http//home.byu.edu/webapp/finserve/index.j
  sp

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Business Objects
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Fund Accounting

• Funds are Resources ( support) that are grouped
  into funds according to their source, donor
  objectives or types of activities.
• Funding sources you will generally deal with
  include
• Budgeted 11 (Support from Church)
• Academic Related 13 (Academic business
  activities)
• Auxiliary 15 (Campus business operations)
• Designated 19 (Designated by Management)
• Faculty Consolidation 20 (Spendable Funds
  Assigned to Faculty)
• Restricted 23 (Restricted by Donors)
• Endowment Income 31 (Spendable Endowment
  Earnings)
• Externally Funded Research 28 (Known as R
  accounts)

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Operating Units Accounts

• Operating Unit is 8 characters and identifies
• A non-project with 8 digits (system automatically
  ties to a fund and department) -or-
• A project with 8 characters beginning with a
  letter (system automatically ties to a fund and
  department)
• Account identifies the nature of the item
  purchased or received.
• Class optional user-defined identifier.

• Example Transaction 11241000-6100-FLSKS
• Operating Unit 11241000 System ties to Fund
  11 department
• Account 6100 Supplies Expense
• Class (optional) FLSKS various Classes may
  be used

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Resources

• Business Objects (BOb) training
• Viewlets located on Financial Services webpage
• Or bobsupport_at_byu.edu
• Or Kurt Huntington kurth_at_byu.edu or 422-7488

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Resources

• Questions?

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Payroll and Kronos

• The basics
• People may not work until formally HIRED
• ePAF system
• Employment must receive notice of all
  Terminations
• Employee types
• Faculty and Administrative
• Staff employees
• Student hourly
• Student assistant (contract)

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Payroll and Kronos

• Kronos System
• Tracks hours worked for hourly Student and Staff
  employees
• Many office-based students/staff record time from
  their computers
• Others use Kronos clocks
• Allows efficient recording and monitoring of
  hours
• Supervisors review and approve the hours worked
  by hourly employees

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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 overtime over 40 hrs per week
• Management of Student Time
• 20 hour per week limitation
• Non-resident alienby Federal regulation
• U.S. resident studentsby University policy

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Payroll and Kronos

• For Kronos Training
• Viewlets located on Financial Services webpage
• Craig Smith, Payroll Services, (craig_g_smith_at_byu.
  edu) or 422-6590
• For training regarding hiring, terminations and
  ePAF, work through your supervisor to determine
  the HR liaison for your department

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Travel At BYU
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My Favorite Travel happenings

• From a Southwest Airlines employee
• Welcome aboard Southwest Flight 245 to Tampa.
  To operate your seat belt, insert the metal tab
  into the buckle, and pull tight.
• It works just like every other seat belt and,
  if you dont know how to operate one, you
  probably shouldnt be out in public unsupervised.

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Travel Management Services Provides

• 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
• Systems and Customer Service

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How To Travel On Business

• Employee travel begins with an Extensity system
  Travel Plan
• Allows supervisors to approve travel before
  commitments are made
• Business-related Travel Reimbursements are
  requested through the Extensity system
• Per diem (meals, incidentals)
• Hotel, airfare, ground transportation
• Hosting

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Travel Management Services

• Helpful Information at Travels Website
• Navigation From BYUs homepage?Faculty
  Staff?, General Services? Travel Management
  Services Bookmark it!
• http//travel2.byu.edu/
• Includes
• Allowed mileage reimbursement rates
• Per diems by city
• Travel Policies
• QA
• Extensity Access

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Frequent Questions

• How do I get my cash advance?
• Can I get a credit card for business travel?
• Can I buy airline tickets on the internet?
• Do I need to fill out a Travel Plan?
• When do I submit a Reimbursement Request?
• How do I get reimbursed for expenses?
• Can multiple travelers go on the same plan?
• 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 Office
  for planning personal travel?

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Extensity Help is available at

• Viewlets located on Financial Services webpage or
  Travel Management Services webpage
  http//travel2.byu.edu/ (this will also provide
  access to general help with all travel related
  matters)
• Extensity Help Desk at 422-5644 or the Travel
  webpage at extensity_help_at_byu.edu

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And one last travel tidbit - by a flight
attendant

• Your seat cushions can be used for flotation
  and, in the event of an emergency water landing,
  please paddle to shore
• and take them with our compliments.

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QUESTIONS?
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Purchasing Goods and Services
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Purchasing
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Purchasing Services

• 1. Recommends Best Net Value suppliers,
  commodities or services
• 2. Recommends and approves suppliers
• 3. Establishes credit with suppliers
• 4. Provides supporting documentation
• 5. Negotiates prices, delivery, etc.

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Best Net Value
BYUs best overall value is determined by a
combination of factors - Quality - Service
- Price - Standardization - Life-cycle
costing - Local availability - Warranty -
Purchasing Card acceptance - Discounts -
Technical support - Freight costs - Training -
Timely delivery - E-business ready
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Purchasing

• Just because something is wanted does not mean it
  is authorized to be purchased
• Not everyone on campus is authorized to commit
  BYU to a purchase

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Purchasing

• Purchasing Website
• Navigation From BYUs homepage?Faculty
  Staff?, General Services? Purchasing Bookmark it
  !
• http//purchasing.byu.edu

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Purchasing Website
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Major Purchasing Payment Tools

• Purchase Requistion/Order
• Purchasing Card-Use anywhere a Visa credit card
  is accepted
• COD Check-Vendor will not wait for pmt or take
  purchasing card
• Fast Track
• Authorized category, pre-approved vendor
• Extensity-Business Reimbursement
• Extensity-Travel Advances and Reimb.
• Corporate Travel Visa Card-for Travel

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Payment Tools for Goods and Services (July 2005)

• Fast Track
• Services
• Within approved categories
• Purchasing has already established vendor
• Goods and Services
• Within approved categories
• Purchasing has already established vendor
• Primarily for use where Purchasing Card cannot
  be used

• Purchase
• Requisition
• No Fast Track category, or greater than 2,000
• Help needed to locate the vendor, good or
  service
• Restricted commodity
• DO NOT negotiate with vendor in advance of
  submitting requisition

• Extensity Travel Reimbrsmnt
• (including Corp. Travel Card)
• Expenses while in travel status
• Conference registration
• Hosting

Do Not Negotiate with Vendor. Use other Payment
Tools, or Purchase Requisition
Over 2,000
Rarely over 500

• Purchasing Card
• Goods and services

• C.O.D. Check
• (Convenience Check)
• Corporate vendor (not individuals) who will not
  accept credit card will not invoice BYU (e.g.
  Costco, Sams Club)
• Penalty for misuse

Under 2,000

• Extensity Business Reimbrsmnt
• Used only when other payment tools were not
  available at the time of a True Emergency Misuse
  Penalty

Under 500
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Payment Tools for Research Subjects, Royalties,
Refunds, Academic Reimbursements (July 2005)

• Temporary Petty
• Cash Fund
• Payments in cash to individuals for
• Research subjects who must remain anonymous
• College Controller Requests and Approves
• Payments are expected
• to be small amounts
• (e.g. 5, 10)

• AP Upload
• Payments to individuals for
• Royalties
• Refunds
• Research subjects
• Payments expected
• to be smaller amounts (e.g. under 1,000)
• Campus should try to group uploads to 5 or more
  people

• Fast Track
• Payments to corporations for
• Royalties
• Refunds
• No limitation

• Extensity
• Payments to individuals for
• Refunds
• Reimburse students for their own academic
  program costs
• No limitation
• Travel Dept will review all such transactions

Note Refunds pay back to customers amounts they
paid to BYU. Reimbursements pay others for
items paid by them on behalf of BYU.
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Who to contact for more assistance

• Fast Track
• Questions or need access to system
  http//purchasing.byu.edu/tabs/fastrack.asp
• To schedule training http//purchasing.byu.edu/de
  pt/calendar.asp
• Telephone number 422-3471 (also will answer any
  purchasing related question)
• Purchasing Card (P-card)
• Training available as PowerPoint on Financial
  Services Webpage (other training documents
  link)
• Help from
• Mac Hafen, 422-7801 (Mac_Hafen_at_byu.edu)
• Maryanne Draney, 422-4702 (Maryanne_Draney_at_byu.edu
  )
• Lynette Cummings, 422-3662 (Lynette_Cummings_at_byu.e
  du)
• Student Help Desk - 422-8744

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• Questions?

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The End

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