Financial Statement Descriptions for the Budget and Financial Planning Web Page

Deficits

A deficit is defined by a funding source, activity code, organization, and entity combination that have a negative ending net asset value.

As part of the university’s internal fiscal controls, deficits are reviewed annually and any deficit over $1,000 requires a documented analysis and a plan to fund the deficit. Any issues which arise from unfunded deficits will be discussed with university leadership in the fall.

The following is a more detailed description by funding category and a tutorial on reading and generating the deficit financial reports.

General Operating General Operating will have no ending net assets at the end of the fiscal year because the Oracle system transfers (object code 72400) all surpluses and deficits from the general operating funding sources (000001 through 000003 and 000005 and 000010) by organization to the organization’s operating reserve (funding source 060000, activity code 000). If a unit prefers to have the general operating balances moved to any other funding source, activity code, organization, or entity, it may move balances using the transfer surplus / deficit object code (72400). Examples are as follows:  There are 3 organizations within a department, and the department wants to hold the surplus / deficit in only one organization. The department would transfer the balances in general operating by department to the operating reserve in the one department that will hold the balance.  An organization has tracked actual revenues and expenses by activity codes throughout the year to follow specific tasks. If the department wants to continue to track cumulative balances by activity code, it must transfer those balances from funding source 000001 to the operating reserve by activity code.

General Institutional The General Institutional funding source (000004) must be zeroed out at fiscal year end. The Budget and Financial Planning Office works with each department that has responsibility for general institutional activities throughout the year, and clears all surpluses and deficits at the end of each fiscal year.

Designated Operating, Unrestricted Endowment, and Capital Reserves These categories are defined as follows:  Unrestricted endowment (funding source 000100 through 049999)

 Designated operating (funding source 060000 through 069999 and 800000 through 809999), which includes operating reserves, unrestricted faculty discretionary funds, internally funded projects, technology transfer dockets, cost sharing, faculty development grants from the Provost’s Office, SURG, and affiliate programs.

 Capital reserves (funding source 090100).

All deficits over $1,000 require a documented analysis and a plan to fund the deficit. Auxiliaries and Recharge Centers Each auxiliary (funding source 050000) and recharge (funding source 055000) needs to provide explanations for surpluses and deficits, as well as a pricing and cost plan to eliminate the balance. These responses will be shared with the Cost Analysis department.

Sponsored Projects Sponsored Projects (funding sources 07xxxx and 08xxxx) surpluses and deficits are defined at the project, task, and award level. In addition, the total sponsored projects balance needs to be reconciled to the balance in the BMS (budget management spreadsheet). All differences must be identified and resolved. All deficits over $1,000 require a documented analysis and a plan to fund the deficit.

Temporarily Restricted Temporarily Restricted endowed (funding sources 1xxxxx) and gift (funding sources 2xxxxx) deficits should be cleared by the end of each fiscal year. Any deficits not cleared require a documented analysis and a plan to fund the deficit.

Agency Agency (funding source 9xxxxx, entity 95) deficits over $1,000 require a documented analysis and a plan to fund the deficit.

Deficit Reports in Oracle There are two financial reports (FSG) in Oracle for deficit analysis and reporting.

FS DETAIL – DEFICITS displays the following account segments:

 Funding Source – value and description  Organization – value and description  Activity – value only  Entity – value only

Row Order is used to sort the account segment values by Funding Source, Organization and Activity.

FS DETAIL – DEFICITS displays the following measures:

 Increase/(Decrease) Net Assets  Beginning Net Assets  Ending Net Assets ………………………………………………………………………………………………

FS DETAIL – DEFICITS AGENCY/ORG displays the following account segments:  Funding Source – value and description  Organization – value and description

Row Order is used to sort the account segment values by Funding Source then Organization.

FS DETAIL – DEFICITS AGENCY/ORG displays the following measures:

 Increase/(Decrease) Net Assets  Beginning Net Assets  Ending Net Assets

GENERATING THE REPORT

Be sure to include Segment Override values for your Organization and Entity

Publish the report through Oracle. An Excel spreadsheet version of the FS DETAIL – DEFICITS report will allow the user to easily add Comments that address/explain each deficit within the organization. Direction for running reports in Oracle can be found at: https://www.cmu.edu/finance/systems/documentation/files/rpt_mgr_ug.pdf