1 Basic Financial Workshop Available on Financial Services Website at .

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Basic Financial Workshop

Available on Financial Services Website at

http://finserve.byu.edu/files/archives/BasicFSWorkshop.ppt



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Douglas G. Belliston Director, Financial Accounting

and Reporting

Kevin L. Walker, Director, Financial Solutions

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The joint mission of all BYU Financial Employees:

Promote effective use of University’s 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 ControlYour Role in Internal Control

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

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Why Control?Why Control?

"Controls protect weak people from "Controls protect weak people from temptation, strong people from opportunity temptation, strong people from opportunity and innocent people from suspicion.“and innocent people from suspicion.“

(August1977 IIA magazine)(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?Are YOU an Effective Control?

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Financial Service Web ResourcesFS 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 Budgeted—Support from Church 13 Academic Related—Academic Businesses 15 Auxiliary—Campus Business Operations 19 Designated—Designated by Management 23 Restricted—Restricted by Donors 31 Endowment Income/Spending— Earnings from Endowments to be spent

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Speedtypes & Accounts

Speedtype 11241000 Fund+Chem 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 receivedClasses are optional user-defined identifiers

Example Transaction: 11241000-6100-FLSKS

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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 > 40 hrs/week

Kronos web based time entry and time clocks track hours worked

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Payroll and KronosKronos 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 KronosManagement of Student

time Non-resident alien—

limited to 20 hours per week by Federal regulation

U.S. resident students—limited 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

Custodianship of Cash Funds

Segregation of Duties

Reconciliation

Proper Documentation

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 received—match 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/Cash%20Controls.htm

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Purchasing & Purchasing & Vendor PaymentVendor Payment

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PurchasingPurchasing

We seek to obtain the We seek to obtain the Best Net Best Net ValueValue for the University: for the University:

-Quality-Quality -Service-Service-Price-Price --

StandardizationStandardization-Life-cycle costing-Life-cycle costing -Local availability-Local availability-Warranty-Warranty -P-card acceptance-P-card acceptance-Discounts-Discounts -Technical support-Technical support-Freight costs-Freight costs -Training-Training-Timely delivery-Timely delivery -E-business ready-E-business ready

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Purchasing Products and Purchasing Products and ServicesServices

Many Tools to Purchase Products & ServicesMany Tools to Purchase Products & Services Fast Track Check RequestFast Track Check Request Purchasing Card (P-card)Purchasing Card (P-card) Convenience ChecksConvenience Checks Purchase Orders Purchase Orders (from Purchase Requisitions)(from Purchase Requisitions) Extensity ReimbursementsExtensity Reimbursements Corporate Travel CardCorporate Travel Card Petty CashPetty Cash Agency ChecksAgency Checks Limited Purchase Draft (LPDs)Limited Purchase Draft (LPDs) Campus Purchase Order (CPOs)Campus Purchase Order (CPOs)

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Purchasing ToolsPurchasing Tools

Fast Track Check RequestFast Track Check Request Initiated only by Initiated only by

designated, trained Fast designated, trained Fast Track BuyersTrack Buyers

Only used for specific Only used for specific categories of products categories of products or service or service (see (see Purchasing’s website)Purchasing’s website)

Only for established Fast Only for established Fast Track vendorsTrack vendors

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Purchasing Card (P-card)Purchasing Card (P-card) VERY flexible tool assigned to specific VERY flexible tool assigned to specific

people to purchase many kinds of people to purchase many kinds of products products (not for services)(not for services)

$2,000 transaction limit ($2,000 transaction limit ($20,000/mo.)$20,000/mo.) Not for travel Not for travel (conference fees and first-(conference fees and first-

night hotel are allowed)night hotel are allowed) Electronically approved by Electronically approved by

cardholder and supervisorcardholder and supervisor

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Convenience CheckConvenience Check Same rules as Same rules as

Purchasing CardPurchasing Card May not be used May not be used

where P-card is where P-card is acceptedaccepted

Penalty for misusePenalty for misuse

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Purchase Orders (from Purchase Purchase Orders (from Purchase Requisitions) Used for:Requisitions) Used for:

Requesting Purchasing to locate and Requesting Purchasing to locate and negotiate with suppliersnegotiate with suppliers

Transactions larger than $2,000 Transactions larger than $2,000 where items not allowed by Fast where items not allowed by Fast Track processTrack process

Items not allowed by P-card (e.g. Items not allowed by P-card (e.g. Hazardous materials)Hazardous materials)

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Purchasing ToolsPurchasing ToolsPurchase Requisitions:Purchase Requisitions:

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Extensity ReimbursementsExtensity Reimbursements System planned to go live during first System planned to go live during first

quarterquarter Approved travel reimbursementsApproved travel reimbursements Approved reimbursement to employees for Approved reimbursement to employees for

personal purchase of business supplies personal purchase of business supplies when other payment options are not when other payment options are not feasible (use of Purchasing-card, feasible (use of Purchasing-card, Convenience Check recommended)Convenience Check recommended)

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Corporate Travel CardCorporate Travel Card Encouraged for business travelersEncouraged for business travelers Automatic download of transactions Automatic download of transactions

to Extensity for reimbursementto Extensity for reimbursement Corporate liability so personal items Corporate liability so personal items

should not be paid with this cardshould not be paid with this card– If inadvertently paid, may be excluded If inadvertently paid, may be excluded

from Extensity reimbursementfrom Extensity reimbursement

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Petty CashPetty Cash Take money to purchase items where P-Take money to purchase items where P-

card cannot be used and return the receiptcard cannot be used and return the receipt Count of cash plus receipts always equal Count of cash plus receipts always equal

to total authorized Petty Cash amountto total authorized Petty Cash amount

Change Funds are NOT petty cash and Change Funds are NOT petty cash and authorized balance must ALWAYS equal authorized balance must ALWAYS equal count of cashcount of cash

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Agency ChecksAgency Checks Check stock controlled by campus Check stock controlled by campus

clubs and certain other areasclubs and certain other areas Funds NOT owned by UniversityFunds NOT owned by University University provides accounting University provides accounting

reports for transactionsreports for transactions Check steward must control check Check steward must control check

stock under lock and keystock under lock and key

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Limited Purchase Drafts (LPDs)Limited Purchase Drafts (LPDs) Department controlled check that is Department controlled check that is

being phased out during first quarter being phased out during first quarter of 2004of 2004

Was used for low dollar transactions Was used for low dollar transactions and to reimburse for personal and to reimburse for personal purchases of business suppliespurchases of business supplies

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Purchasing ToolsPurchasing ToolsLimited Purchase Drafts (LPDs)Limited Purchase Drafts (LPDs)

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Campus Purchase Orders (CPOs)Campus Purchase Orders (CPOs) Department initiated instrument to Department initiated instrument to

“sell” or “buy” items between two “sell” or “buy” items between two departments on Campusdepartments on Campus

Requires signature of both buying Requires signature of both buying and selling departmentsand selling departments

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Purchasing ToolsPurchasing ToolsCampus Purchase Orders (CPOs)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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Douglas G. Belliston Director, Financial Accounting and [email protected]

Kevin L. Walker, Director, Financial [email protected]

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QUESTIONS?

1 Basic Financial Workshop Available on Financial Services Website at .

Documents

tool slide

flsks slide

cash independent cash

effective use slide

university policy slide

good cash controls

cash box

financial accounting