Chart of Accounts Anatomy of a Budget String

Hartnell College Mission StatementHartnell College provides the leadership and resources to ensure that all students shall have equal access to a quality education and the opportunity to pursue and achieve their goals. We are responsive to the learning needs of our community and dedicated to a diverse educational and cultural campus environment that prepares our students for productive participation in a changing world.

Administrative Services TrainingSeptember 11, 2013Agenda

Business Office Roles and ResponsibilitiesDocument TypeContact PersonAccounts Payable/Accounts Receivable Patrick MendezAccounts PayableKaren MartinezPayrollAbel Del Real and Dora SanchezBudget Revisions/TransfersBudget Revisions/Transfers - GrantsTracey RichardsonSharon AlheitTravel and Conference Patrick Mendez and Karen MartinezCash ReceiptsLorena Nunez and Tina SummersCheck RequestsKaren Martinez and Patrick MendezGifts/Donations - FoundationTerri UgaleGrants & ContractsSharon AlheitExpenditure TransfersWilfred PlacidoExpenditure Transfers GrantsSharon Alheit and David TechairaPurchasingJoanne RitterPetty Cash ReimbursementsPatrick MendezPurchase Orders/RequisitionsJoanne RitterTimecard Entry Dora Sanchez and Abel Del Real

Chart of Accounts Anatomy of a budget string

11-350-00-095200-51100

Fund11 General FundArea350Occupational EducationLocation00Main CampusTOPS095200Construction TechnologyObject51100Academic Teaching Full-time

1. Chart of Accounts

Major Object of ExpenditureObject Code51100

Major Object of Expenditure1000 Academic Salaries2000 Non-Instructional Salaries3000 Benefits4000 Supplies and Materials5000 Other Operating Expenses & Services6000 Capital Outlay7000 Other Outgo

Fiscal Year (FY) 13-14 General Fund BudgetFrom the board item

BudgetAcademic Salaries 13,336,301 Classified Salaries 7,899,159 Payroll Costs/Benefits 8,219,221 Supplies/Materials 612,725 Operating Expense 5,491,160 Capital Outlay 196,700 Transfers Out 831,401 Total Budget $ 36,586,667 7Examples of Object Codes(First digit of MAJOR Object Code in bold)51100 Academic Teaching Full-time 52105 Classified CSEA53110 STRS Teaching 54300 Supplies55100 Personal Service Contract 1099 (for an individual)55105 Contract Services (for a business or DBA)55200 Travel and Conference55210 Mileage56400 Capital Equipment $200 - $499956405 Capital Equipment $5000 and aboveBudget Revision vs. Budget TransferBudget Revision : reallocate budget between major Object Codes

Ex. Transfer $2000 from 51110 (Academic Salaries) to 56400 (Equipment)**************************************************Budget Transfer: reallocate budget from one object code to another within the same Major Object Code

Ex. Transfer $2000 from 55100 (Personal Service Contracts) to 55105 (Contract Services)

Example 1> Youve budgeted for supplies but you need to make a purchase of an item that costs $200 or more (but less than $5000) You are moving $$ BETWEEN major object codes.

you need inYou have $$ in your budget for contract services provided by an individual and you end up negotiating a contract with a business as opposed to an individual. You then need to move funds from 55100 Personal Services to 55105 Contract Services. 92. Budget Revision FormSampleExcel and PDF

Budget Revision/Transfer FormDesignate Revision or TransferBudget Revisions go to the Board of Trustees for post approvalFor BUDGET onlyDescription is what shows up in datatel; 28 characters, should provide useful infoExplanation is required. Make it meaningful so that a Dean, VP or auditor understands the purpose of the transfer

Why budget revisions go to board. The board approves the annual budget. Moving funds within budget categories is ok, but once you start moving, say, salary budget to equipment that transaction is presented to the board and11Procurement of Goods and Services at Hartnell CollegePurchase RequisitionsPurchase Orders (Mercury Commerce)Check RequestsTravel Request/ReimbursementPetty CashCollege Credit CardContract for Services

PURCHASE REQUISITIONS/PURCHASE ORDERS ARE REQUIRED FOR ALL:

Tangible GoodsFood/CateringServices (not including speakers)Purchase order/requisitions must be created before placing orders for goods or services

Bidding Procedures MatrixEffective May 2013, the Board of Trustees approved the Bidding Procedures Matrix for Hartnell College. The matrix outlines the action needed for purchases at various dollar levels. Documentation of due diligence for the required bids must be included with the purchase request, whether through Mercury Commerce or paper format.3. Bidding MatrixSee sample

Sole Source JustificationSole Source Justification is required in the absence of competing bids for purchases of $5000 and above. Consideration of a sole source vendor/contractor will be considered when the following conditions are met: Only one responsible source to provide the goods or services Urgent and compelling circumstances existComplete the Sole Source Justification form found on Administrative Services website and submit with contract/purchase order/purchase request under consideration. Youll be required provide information to justify sole source.Sole Source Justification must be approved by VP of Admin Services

4. Sole Source Justification FormSee sampleNew VendorsIn order to do business with any vendor, that vendor must be set up in both the Datatel and Mercury Commerce (for purchase orders) databases. Use VENI in datatel to determine if the vendor is in our database or contact Purchasing.Directions and forms to submit new vendor information to Purchasing are located on the Administrative Services Website. Initiate new vendor process two weeks before submitting a purchase order or check request5. New Vendor FormSee sampleMercury CommerceA web-based procurement system, accessible from any computer at any timeHolds vendor information, shipping locations and budget codes to be included on the requisitions and POsChecks budget balances in Datatel to be sure of adequate funding for the requisitionsSends requisition, PO and receiving information to DatatelContact Joanne Ritter to arrange access and training for Mercury Commerce

Purchase Approval on Mercury CommerceEach department has a set of approval routes (standard, A/V and AIS) designed to guide the requisitions to the appropriate Approvers. Current approval logic routes all purchase requests to the Dept Head (Dean) for approval.Purchases at varying $$ levels may route to division VP and Presidents Office, depending on $$ amount. The A/V and AIS routes include additional approval from those departments.

21Mercury Commerce - Receiving

Mercury Commerce - Receiving

More Mercury Commerce Receiving

Blanket Purchase OrdersBlanket POs are for recurrent purchases from the same vendor throughout the fiscal year. Example of a BPO requirement is an on-going service contract. Blanket POs are requested via a purchase requisition (not Mercury Commerce) and input into datatel by Joanne Ritter. Approval logic is the same as Mercury Commerce; approval signatures must be obtained on the Requisition Form. Requisition forms may be obtained from Purchasing or the Business Office.

6. E-Purchase RequisitionCurrently Hartnell is using an NCR form, available at Purchasing or the Business Office until the numbering challenge of the E-Requsition is addressed. Check RequestsDues SubscriptionsReimbursementsConference RegistrationsTravel (ALL - includes hotels, airfare, car rentals, etc...)SpeakersStudent Stipends

Note: Memberships are typically an unallowable expense; contact Controller or Grants Accounting Manager before submitting a request to pay a membership.

Check Requests - ReimbursementsReimbursements are an exception to purchasing policy and will be reviewed carefully by the Controller and the Grants Accounting Manager. Under no circumstances will anyone be reimbursed for paying out of pocket for services. Dont pay out of pocket; reimbursements are not guaranteed. Use purchase orders. 7. Check RequestSee sample

Conference and TravelAll conference and travel expenses must be pre-approved by appropriate administrators. Use a Travel Request form to propose a travel/conference expenditure.Out of state travel must be pre-approved by the President/Superintendent. Prepayment of travel expenses can be charged to the Hartnell credit card upon receipt of a fully approved travel request form.

8. Travel Request FormSee sample

Some fund sources (Chancellors Office Grants) require travel pre-approval from the Chancellors Office.The Travel Request FormPrepayment of travel expenses (airfare, registration, hotel) can be charged to the Hartnell credit card upon receipt of a fully approved travel request form. Meet with Karen to review the documentation required to prepay expenses. Do NOT simply submit a Travel Request Form and expect the expenses will be pre-paid. The advance request implies a reimbursement of travel expenses, unless otherwise arranged.

9. Check Request for Travel AdvancesSee sample

Attach this documentation to Travel Request along with supporting documentation and authorized signatures. Travel and Conference per diemsWe recommend that all Hartnell travel expenses fall within the dollar limits stated by the U.S. General Services Administration (GSA). These rates, often referred to as CONUS (Continental United States) rates vary by location. Some fund sources (grants) require that travel expenses not exceed those found in CONUS.

We recommend that you attach the per diem rates for the city of travel to your conference request in order for your Dean/Adminstrator verify that the expenses in each area (hotel, meals, etc.) do not exceed the CONUS per diems.

http://www.gsa.govTravel ReimbursementApproved travel request is forwarded to the business office to verify there are existing funds to which to charge the travel.AP department sends the traveler a Travel Reimbursement form.Traveler must save all receipts associated with the conference/travel college does not reimburse on a flat rate per diem; original receipts are required.Fill out travel reimbursement form, attach original ITEMIZED (no credit card summary slips) receipts.Obtain administrative signature(s) on reimbursement. Mileage ReimbursementThe College will reimburse employees for the use of their personal vehicle used for College business. California law requires that each person must have automobile liability coverage on his or her personal automobiles. The school district will not provide collision, comprehensive, etc., insurance coverage to cover damage or loss to an employees car.

More on MileageIndividuals who will be driving must have a valid California Driver's License and be able to offer proof of insurance coverage. Business Office keeps a record of this information for employees requesting mileage reimbursement.

Mileage reimbursement is meant to cover only those miles incurred above and beyond the employees normal commute to his/her place of business.10. Mileage Reimbursement FormSee sample

In general, A Travel Authorization Request, is not required, unless it is deemed necessary by the program manager, e.i. grant related activities.

Petty CashThe Cashiers Office maintains a Petty Cash Fund. The petty cash fund is to reimburse employees who need to make inexpensive emergency purchases or whose accumulated mileage claims plus emergency purchases for a given month is $50.00 or less. Reimbursements may be requested on a Petty Cash Reimbursement form, signed by appropriate administrator.

Petty Cash Fund may NOT be used for the following:Office Supplies - Hartnell has a contract with Office Depot to purchase supplies at a discount order office supplies through Mercury Commerce.

Food Food purchases are typically unallowable using college funds except under certain conditions. No petty cash reimbursement of food unless it is a biology lab related supply.

11. Petty Cash Reimbursement FormSee sampleMore Petty Cash GuidelinesReimbursement requests should be made no later than 10 days after the end of the month in which the expenses were incurred.

Petty cash reimbursements can be requested from the Cashiers Office Wednesdays between 1:00 p.m. and 5 p.m. and Fridays between 9:00 a.m. and 1:00 p.m.

Hartnell College Credit CardThe Business Office has a college credit card for use for the following:

Prepaid travel and conference expenses (airfare, hotel, and registration fees that cannot be paid by check).

Web-based purchases where the vendor does not accept a purchase order.

Use of Hartnell Credit CardTo request a purchase using the Hartnell Credit Card: Submit a check request, including budget number, with appropriate administrative approval; indicate that you are requesting use of the college credit card.Check request/use of credit card must be approved by the Vice President of Administrative Services.Karen or Patrick will then assist you in making the purchase.The credit card does not leave the business office; if you are making an on-line purchase, be prepared to log on to the website from our office have your order ready.

Contract for ServicesServices to Hartnell with a dollar amount of $500 and above per fiscal year must be contracted using a Professional Services Agreement. The PSA template can be found on the Administrative Services web page and must be accompanied by a Tracking Sheet also found on our website.Plan ahead the approval process takes time. All PSAs must be signed by the President of the college after approval by the Board of Trustees and before services commence.

12. Tracking Sheet for ContractsSee samplePayment for Contract ServicesOnce the Contract for Services is fully executed, payment options are as follows:

For one-time services, submit the vendor invoice on a check request with appropriate signatures.

For on-going services, set up a blanket purchase order. Submit vendor invoices with the BPO number on the invoice, signed by a college employee who can verify that the services were received as billed. Datatel QueriesHands on Datatel Training will be available through the Faculty Research Center soon.

Request for Datatel access form will be found on our Administrative Services webpage.Datatel Financial QueriesNow, a demonstration of the two most used datatel budget/expense queries.

GLBR R:\BUSINESS SERVICES\Training\Steps for GLBR

GLBS R:\BUSINESS SERVICES\Training\Instructions GLBS

Expenditure TransferExpenditure Transfers are initiated when an expense (not budget) needs to be transferred from one account to another, typically due to an error or to reallocate an expense due to changed circumstances.

All expenditure transfers must be supported or backed up by a datatel detail report showing where the expense initially posted. You may not transfer encumbrances only expenses. Expenditure Transfer vs. Budget Revision/Budget TransferUnderstand the difference between a Budget Revision/Transfer and an Expenditure Transfer.

BR/BT is moving BUDGET from one budget line to another. You may not move budget between funds or between grant TOPS.

You may move expenditures between funds and grant TOPs, if appropriate. Administrative Services Management TeamAlfred Munoz, Vice President of Administrative Services

Tracey Richardson, Controller

Dora Sanchez, Supervisor (Payroll/AP/AR/Cashiers/Mailroom)

Sharon Alheit, Grants Accounting Manager