Self supporting accounts are required to maintain a positive cash balance at all times. This requires the accounts to be funded before expenditures are processed. This is separate from the budget process, which allows expenditure transactions to post to an account based upon expense budget allocation.
The budget that is established is the plan for account revenue and expenditures for the year and it allows activity to be encumbered at the beginning of the year before any cash posts to the account. When encumbrances are transformed into expenditures or when direct expenditures are processed, the offsetting cash must be available in the account to cover those expenditures. Account Managers have a responsibility to monitor their accounts on an ongoing basis during the year to ensure that cash posts to the account before the expenditures are processed so that the account maintains a positive cash balance.
UNLV is required to report self supporting accounts with negative cash balances to the Board of Regents quarterly. Financial Planning, Budget & Analysis monitors negative cash balances and will notify departments so that corrective action can be taken to balance the account. If any account has a negative cash balance by the end of each fiscal quarter, it will be listed on the Exceptions Report submitted to NSHE for the Board of Regents agenda and reviewed at the Board Meetings. The department will be required to provide a written report explaining why the deficit occurred, what actions have been taken to correct the deficit, and when the deficit will be eliminated, with supporting schedules and details. The department or division will be expected to have a representative available at the Board meeting, who is prepared to answer any questions that may arise about the overdraft.
The Appropriation Cash Balance report is available at the bottom of the Balance and Activity or Organization Summary reports in the Financial Data Warehouse.
| Appr Unit | Current Expense Budget | Current Revenue Budget | Exp/Rev Budget Difference |
|---|---|---|---|
| 2534659 | $1,783,205.00 | $1,783,205.00 | $.00 |
| Appropriation Unit | Beginning Cash Balance | Outstanding Pre-Encumbrances | Outstanding Encumbrances | Expenditures Year-to-Date |
Actual Receipts Year-to-Date |
Balance |
|---|---|---|---|---|---|---|
| 2534659 | $67,554.71 | $.00 | $448,445.94 | $168,441.44 | $90,498.35 | $458,834.32 |
- Balance = Cash Balance + Actual Receipts – Expenditures – Encumbrances
- Cash balance = Beginning Cash Balance + Actual Receipts – Expenditures
- Add the Outstanding Encumbrances amount to the Balance to determine the account Cash Balance. –($458,834.32) + $448,445.94 = -($10,388.38)
- If the Cash Balance is less than zero, the Account Manager should take corrective action as outlined below. The Account Manager should also plan ahead to fund the account to cover the encumbrances as they become expensed.
Gift Accounts
Submit a Monetary Transfer Request (MTR) form to the UNLV Foundation at the beginning of the year to fund the account for all upcoming projected expenditures. Monitor the account during the year and submit additional MTRs as needed to keep the account balance positive. Refer to the Foundation deadline schedule to ensure that the MTR forms are submitted in time to allow funds to post to cover planned expenditures. The UNLV Foundation transfers funds to UNLV around the 10th and 25th of each month; for transfers of $25,000 or more, a minimum of 30 days is required between the request and the transfer to UNLV, so it is important to be familiar with the UNLV Foundation schedule and transfer deadlines.
Do not wait for the last transfer date of the fiscal year to fund the account for the fourth quarter. Ensure that funds are transferred early in the quarter and request additional funds, if available, to allow for contingencies.
Accounts Funded by Voluntary Transfers
Coordinate with the Account Manager for the funding account and confirm the timing of transactions submitted to fund the account in time to cover planned expenditures.
Other Revenue
Be aware of the funding source, timing of payments, and any action needed for receipt of funds, such as submitting invoices or draw requests, and depositing physical checks through the Cashier’s Office. Where relevant, follow up with customers to confirm that payments have been initiated and track them to ensure that they post correctly and timely.
Monitor Account Expenditures
Review account activity on a regular on-going basis, especially at the beginning of the fiscal year and each fiscal month. Ensure that expenditures are correctly assigned. Identify any unexpected expenditures, such as Pcard activity and coordinate with Pcard holders to confirm that transactions are valid for the account. If any expenditures are incorrectly assigned, initiate correcting transactions to reassign them as soon as possible.
Record Revenue
- If the revenue has not posted to the account, follow up by submitting the correct documents; MTR, IDR, JV, or deposits.
Reassign Expenses
- When an account is over-expended and there is no additional revenue expected by the end of the fiscal year, the only option is to reduce expenses to balance the account.
- Non-payroll expenses can be reassigned to another account by JV or by sending a request (on an IDR) to the Controller's Office with supporting transaction details.
- Payroll expenses, with the exception of wages, must be reassigned through Payroll by submitting a superseding PAF.
- The expenses must be allowable on the transfer-to account and reassignments must be submitted within the fiscal year deadlines.