01 REVENUES
- Spread across missions according to each activity’s mission assignment
- Each activity/project is assigned to one mission exclusively
- Assignment should be based on source/intent of funds
Examples:
-
- If the money received is payment for clinical services, the activity should be Clinical ( C )
- If the money is specifically received for research expenses, the activity should be Research ( R )
- If a particular activity has multiple revenue sources, the mission assignment should be based on the predominant revenue source
- Global definitions (unless otherwise specified on a per activity/project basis):
Fund Source Mission Assignment 1001 State Funds Education 5000 Contracts & Grants Research 6100 State Funds Education 6300 Sponsored Programs: State Funds Education
- Revenue data determined based on fund
Fund
Formula
1001
Revenues = Expenses +/- Net Transfers
2000
Actual revenue based on account codes; includes all account codes (4XXXX) except Transfer In codes (49700 to 49997); excludes account code 40285. Also includes bad debt expense codes (63800 and 63801) as offset to gross charges.
2100
Actual revenue based on account codes; includes all account codes (4XXXX) except Transfer In codes (49700 to 49997); excludes account code 40285.
2200
Actual revenue based on account codes; very few transactions in Revenue for this fund as most activity occurs as Transfers.
2500
Actual revenue based on account codes; very few transactions in Revenue for this fund as most activity occurs as Transfers.
5000
Revenues = Expenses +/- Net Transfers; many grants cross fiscal years so we recognize revenue as the monies are spent; only expenditures posted during the financial statement time period are shown. (Direct costs only; no F & A)
6000
Actual revenue based on account codes; includes all account codes (4XXXX) except Transfer In codes (49700 to 49997); excludes account code 40285.
6100
Revenues = Expenses +/- Net Transfers
6300
Revenues = Expenses +/- Net Transfers
- Manual adjustments are entered in the revenue section for those funds that net to zero (Revenues = Expenses +/- Net Transfers). The adjustments are necessary because the net transfers that affect dollars in or out, don’t automatically adjust the revenue formula. The adjustment prevents double counting. These adjustments are shown as “adj: fund xxxx fix” on the backup detail report.
Example:
Category
Before Adjustment
After Adjustment
Revenues
50,000
40,000
Expenses
(50,000)
(50,000)
Net Transfers
10,000
10,000
Net Change
10,000
0
02 EXPENSES
- Spread across missions according to percentages based on expense category. Expenditures are divided between the three categories based on account code.
- Faculty Personnel Expenses – based on faculty activity survey
- Staff Personnel Expenses – based on department specified percentages
- Non-Personnel Expenses – based on faculty activity survey
- Only expense totals are shown by fund so as not to misrepresent how restricted funds are spent. Mission totals represent time, not actual transactions. This approach helps us in determining the total cost of each mission, not just direct expenditures.
- Expenditure recovery codes (68900 to 68936) are not included in the expense section, but instead are shown as Transfers In.
- Bad debt expense codes (63800 and 63801) are not included in the expense section, but are included in Revenues as an offset to gross charges.
- UH Facilities & Engineering charges under account code 67579 are excluded from transfers out and included as non-personnel expenses.
- IDX system costs and UMB collection fees are included the expense section to match non-personnel expense category used for budgeting purposes; offset reflected in Net Transfers.
- Transfers Out are filtered from expenses and included in Net Transfers.
03 to 081 NET TRANSFERS
- Transfers In and Transfers Out are separated from Revenues and Expenses based on account code. The two are then netted to arrive at a total “Net Transfers.”
- For all funds except 1001 and 6100, Transfers In include the following account codes:
- Non-mandatory and Mandatory Transfer codes: 49700 to 49997
- Expenditure Recovery codes 68900 to 68936
- Student Fees: 40770
- In order to differentiate between transfers to add budget amounts and transfers of existing funds, 1001 and 6100 exclude the following account codes:
- 1001: 49918, 49919, 49960
- 6100: 49919, 49960, 49969
- For all funds except 1001 and 6100, Transfers Out include the following account codes:
- Non-mandatory and Mandatory Transfer codes: 67400 to 67703
- UH Facilities & Engineering charges under account code 67579 are excluded from transfers out and included as non-personnel expenses
- Again, to differentiate between transfers to add budget amounts and transfers of existing funds, 1001 and 6100 exclude the following account codes:
- 1001: 67519 and 67569
- 6100: 67519, 67560, 67569
- All transfer sections with the exception of “07. Net Transfers” are manually adjusted as a means of itemizing certain types of transfers. For example, SVP support may come in the form of a non-mandatory transfer, but in order to show it as a separate category “SVP Support In,” we enter an adjustment entry reducing net transfers and crediting “SVP Support In.” These two entries can be seen in the backup detail, one in net transfers and one in SVP Support In. Both are identified as manual with the “Adj” in the activity code.
NET CHANGE
- Net change is calculated as revenues less expenses +/- net transfers to approximate net change in cash. This line highlights surpluses and shortfalls by mission, as well as providing a combined total.
09. ACTIVITY BALANCES
- All cash balances in funds 2000, 2100, 2500, and 6000. (Includes all activities in the given funds.)
095. CASH RESERVES
- Cash balances in funds 2000, 2100, 2500, and 6000 as indicated by departments should be included in cash reserve calculation. Applies only to School of Medicine, so for other colleges Activity Balances and Cash Reserves will be the same unless they indicate otherwise.
BACKUP DETAIL
- The backup detail report enables you to tie the MBM Financial Statement totals to the PeopleSoft Management Reports. The backup provides totals by fund and by category so you can see which activities/projects comprise a given total. For each row, based on the definitions described above, you can work from the activity/project Summary of Revenue/Expense to the MBM Statement.