Accounting and Safeguarding of Assets

40.02         Monthly Financial Statements                                                      Issued: May 15, 1998

1.     The monthly departmental financial statements from FAMIS consist of the following:

        1.1     The Subsidiary Ledger Account Summary (Summary Statement) gives an
                  account summary of revenues, expenditures, encumbrances and available balance.

        1.2     The Open Commitment Status Report (Encumbrance Listing) lists current
                  encumbrances on the account.

        1.3     The Subsidiary Ledger Detail Transaction Report (Detail Transaction
                  Report) details all activity occurring in the account for the current month only.  

2.     Subsidiary Ledger Account Summary

        2.1     Revenues (applies to local accounts only)

                  Original Income Budget ­ The dollar amount that department is expected to earn.
                   This  is used to support the expenditure budget.

                  Revised Income Budget ­ This reflects any changes made to original budget. The
                  Revised Budget column will pull from the revenue pool and apply it to the type of
                  revenue earned.

                 Current Month ­ This is the income earned on this account for the current month.
                 The current month revenue is detailed on the Subsidiary Ledger Detail Transaction
                 Report (Detail Transaction Report) which follows the Summary Statement.

                 Fiscal Year ­ This is the income earned on the account for the fiscal year.

                 Balance Available ­ This reflects the unrealized or over-realized estimated income.
                 In other words, if the dollar amount is negative, this reflects the dollar amount that the
                 department must raise to meet its estimated income budget. If the dollar amount is
                 positive, this reflects the dollar amount over the estimated income budget.

        2.2    Expenditures

                Generally speaking, there is only one budget pool titled "All Expense Pool". FAMIS
                does have the capability for multiple expense pools to assist with budget control;
                however, the University does not utilize this feature unless requested by a department
                for a specific account. The dollar amount under the All Expense Pool will include all
                budget line items (i.e. salary, wages, other operating expenses and capital outlay).

                Original Expenditure Budget ­ The original operating budget established for the
                account.

                Revised Expenditure Budget ­ This reflects any changes made to the original
                expense budget, which includes carry-forward encumbrances, budget transfers,
                budget increases, and budget reductions. The Revised Budget column will pull from
                the all Expense Pool and apply the funds to whatever subcode a transaction was paid
                or encumbered on. The revised budget indicated for the All Expense Pool reflects the
                available balance.

                Current Month ­ These are the expenditures for the current month. The Detail
                Transaction Report details the transactions making up these dollar amounts.

                Fiscal Year ­ These are the expenditures for the fiscal year. A Detail Transaction
                Report that details the cumulative expenditures for the entire fiscal year is available.

                Open Commitments ­ These are the encumbrances currently outstanding summarized
                by subcode. The Encumbrance listing, which follows, details these encumbrances.

                Balance Available ­ This reflects the unencumbered, unexpended balance. This is the
                amount that has not been spent or committed (encumbered) to be spent.

3.     Open Commitment Status Report

        Encumbrances listed in this section are grouped by the subcode which they were assigned.
        Subcodes are assigned by either the Purchasing Office, the Budget Office or the Restricted
        Funds Office. This encumbrance listing lists only encumbrances that are outstanding at
        month end or encumbrances that were carried forward from the prior month and completed
        during this month. Encumbrances established and liquidated in the same month will not be
        listed on this statement.

        Original Amount ­ This is the original amount of the encumbrance. For example, if an
        encumbrance is set up at $100.00 then later increased by $50.00, it would appear on the
        Encumbrance Listing Report as illustrated on Line 1 below. If an encumbrance is established
        at $175.00 and then reduced by $75.00, it would be reflected as shown on Line 2 below.

        Liquidating Current

                                       Original         Expenditures        Adjustments         Amount

                    Line 1          100.00                                             50.00             150.00

                    Line 2           175.00                                           (75.00)           100.00

        Liquidating Expenditures ­ This represents the amount paid on the encumbrance. If the
        amount paid is different than the encumbered amount, this difference is either pulled out or
        added back to the All Expense Pool. For example, if $200.00 is encumbered and the
        amount paid is $225.00, an additional $25.00 will be pulled from the All Expense Pool. This
        would be reflected as follows:

        Liquidating Current

                                       Original         Expenditures        Adjustments         Amount

                                         200.00           (225.00)                 25.00             Completed

        Adjustments ­ This column will reflect any change to the original encumbrance amount as
        discussed in the Original Amount and Liquidating Expenditure discussions. It would also
        reflect the cancellation of an encumbrance.

        Current ­ This reflects the dollar amount of the outstanding encumbrance.

        Note:     Departments should periodically review their Encumbrance Listing to
                      determine whether all outstanding encumbrances are valid. If a department
                      wishes to cancel an  encumbrance, the appropriate office (i.e. Purchasing,
                      Budget or Restricted Funds) should be contacted.

4.     Subsidiary Ledger Detail Transaction Report

        The Detail Transaction Report will list all transactions which occurred within the current
        month.

        Budget Entries ­ Budget entries appear only in this column. A positive number is an
        increase, while a negative number is a decrease. Departments should verify these entries to
        the Budget Transfer Requests and original operating budgets.

        Current Rev/Exp ­ This column will list all revenue and expenditure (by subcode) activity
        occurring in the account during the current month.

        Commitments ­ This column will list all encumbrance activity for the current month. A
        positive number in this column represents an encumbrance. A negative number represents an
        encumbrance liquidation.  

Contact:     Manager of Accounting