Budget to Accounting Process

Budget Data

What is the process to load Red Book budget data to the Accounting Master File?

The Red Book Budget encompasses two processes that affect the accounting master file. The first process establishes the departmental budgets; the second initializes the encumbrances for classified and unclassified staff.

The departmental budgets are provided to Accounting in the format that is reflected in the Red Book. This data has to be ‘transformed’ into the working budget. The working budget reflects an individual accounting structure unique to UW System, a campus or division. When UW System has balanced the budget at a system level, and the final budget lock occurs (after the budget has been signed and published), the information is passed to the UWPC - Accounting Services. This usually takes 2-3 weeks after the budget is signed. It then takes an additional week for the data to be transformed into the working budget.

The working budget is loaded into the Accounting System in July or August of the second year of a biennium. It is loaded any time after July (sometimes as late as October) if it is the first year of the biennium.

What is the process for the Summer Session Budget load?

The Summer Session Budget for Madison, Milwaukee, Parkside and UW Colleges is loaded in May or June of each year. This does not have to wait until the new budget is signed since Summer Session Budgets are based on the previous year's salary rates.

Can the working budget structure be changed after the Red Book budget is locked but before it is loaded to the Accounting Master File?

Any accounting changes to Red Book data are processed using campus budget transfer forms. They are not done via the initial budget to accounting load.

What adjustments are done to the departmental budgets at a Processing Center level?

The Processing Center makes two (2) adjustments to the departmental budgets. One is for carryover specific requisitions and the other involves the classified pay plans and/or contracts.

The budget supplement for carryover specific requisitions from the previous year is done after the Red Book data has been loaded to the accounting master file. This adjustment is done under transfer number ‘BUDP’ with a reason code of ‘PY’. These adjustments are done for all UWPC and all appropriations per UW System. However, those that are ‘controlled’ at a system level, (133,144) are done at that level rather than the departmental level. Contra accounts are used to establish annualized budgets for these funds. Contra accounts are special fund account records that reflect budgets at a unit, activity and major class level.

The Red Book departmental budgets contain pay plan dollars for the unclassified staff. They do not include pay plan or contract dollars for classified staff. These dollars are held in campus unit-wide accounts and are ‘transferred’ out as encumbrances are adjusted during the new year for the pay plans.

The budget supplement for classified pay plan or contract increases are based on the encumbrance increase program. These dollars are transferred to the departmental GPR funds using budget transfer numbers assigned by the Processing Center. They usually start with ‘BUD’. These supplements are done only for the former PPC campuses.

How are the encumbrances ‘initialized’?

The Red Book contains staff detail (Form 2A). This information is used to initialize (create) encumbrances for the upcoming fiscal year. Encumbrances are used only for the former PPC campuses. The unclassified encumbrances will have the new year pay plan increases included. The classified encumbrances will be based on the rate that is reflected in the budget, NOT on the rate contained in the Appointment System. If the budget rate is not the final rate for the previous fiscal year, the base encumbrance will be wrong. This will have a negative effect on the subsequent automated encumbrance increases.

The budget data goes through a preliminary high level edit for validity of funding for each encumbrance prior to the load of the funding table. A budget report is produced from this process indicating those that will not pass the accounting edits. If these are not corrected prior to the load to the funding table, they will not pass into the Accounting System.

The ‘funding table’ is a file that contains the 2A staff detail in a format that Accounting and Payroll can use. The Payroll Office uses this information to create the new year unclassified payroll splits for the July payroll. Accounting Services uses the information to create the new year encumbrances for all budgeted staff. No encumbrances are created for the former Warf Campuses.

Accounting extracts only those appointments that have complete and accurate funding information in the funding table. This excludes encumbrances whose funds need an account numbers and did not have one reflected in the 2A, or any encumbrance that did not pass the initial preliminary budget to accounting edits. The valid encumbrances are then loaded to the Accounting file and have the term ‘BUD’ as part of the description to indicate that transaction came from the Red Book Budget file.

How are the classified encumbrances updated for the pay plan and contract increases?

Accounting Services has a program called ‘mid-year encumbrance increase’. This process is used for ALL classified staff to update the original budget encumbrances with the new year rates. This job accesses data in both the Appointment System and the Accounting Requisition file to generate the encumbrance increases.

The Appointment System is updated by the Madison Classified Personnel Office with all new year pay plan or contract rates. They pass this information to Accounting and it is entered manually into the Accounting Pay Plan file. The job is then run against the Appointment System Rate Change Table for each employee affected and the Accounting Requisition file.

At the time the program was written, the Appointment System did not have a reliable funding percentage so one has to be calculated. This is derived from the rate in the Appointment System prior to the effective new year rate and the encumbrance that was passed to Accounting from the Budget (or the encumbrances manually entered by the department). This calculated funding percentage, the rate change amount, and the begin/end dates of each funding split are all used in the calculation of the encumbrance increase.

There are some controls built into this program to ‘catch’ the adjustments that may be inaccurate due to the base rate in budget being inaccurate, or any other manual adjustments done by the departments that may cause the increase program to generate inaccurate data. There were some pre-determined reliable FTE percentages built into the program. If the funding percentage is not within this range, the adjustments will not automatically process. An exception report is produced for the department to review and manually adjust the encumbrances.

Invested funds

How are earnings generated for 128 funds?

The Processing Center’s Cash Management Office provides daily information at a campus level to UW System Trust Funds. They record this movement of funds and report it daily to DOA who invest the dollars at a system level. Monthly, DOA reports to UW System Trust Funds the amount of earnings generated for the University. Trust Funds loads this information into their investment database. A program is then run to distribute the earnings by campus and generate a report. They send the report to Cash Management who enters the earnings data into the accounting system.

How does this affect my 128 funds?

After the earnings are posted at a campus level, the Data and Financial Systems Management (DFSM) area of Accounting Services generates a report to re-distribute these earnings to each of the 128 accounts. This distribution is run for all the former PPC campuses. (The former Warf campuses do the distribution within their accounting systems). The distribution is based on the previous month’s ending cash balance and the activity that occurred during that particular month. The actual posting of the distribution is done manually by Accounting Services Operations’ staff. (The other former PPC campuses enter their own.)

What if I am trying to close a 128 operation?

If you want to close a 128 account and do not want any more earnings posted to the account, you need to contact the DFSM area of Accounting Services: 1) to ‘block’ the edits so that no more transactions can post to the account other than the clearing entries and 2) to remove that specific 128 record from the master distribution listing so that no further earnings will be generated. You can either remove it completely from the distribution report or direct him to post the future earnings to another operation within your area.