Expenditure Control

Introduction
It is university policy and a sound business practice to prevent organizational units from engaging in deficit spending. Deficit spending arises when expenditures exceed available resources. Whether the result of actual or encumbered expenses, deficit spending strains unit functionality and puts university operations at risk. Expenditure Control is CU's comprehensive approach to promoting sound fiscal management by addressing the problem of deficit spending.

Employee / Affiliate Fiscal Staff Requirements
Employees and affiliate fiscal staff with duties related to fiscal management will need to understand how the University's Finance System and procurement processes will change as a result of Expenditure Control.

• Funds 26, 72, 78, 80: January 8, 2007
• Funds 10 (General Fund) and 34 (Gift Fund): October 8, 2007
• Remaining Funds other than Funds 30, 31 (i.e., Plant, Loan, Endowment): October, 2009
• Delay implementation of 2x Funds until January 2009 to give departments more time to prepare and reports will be updated. System attributes must be in place by per original schedule.
• Postpone Fund 30/31 until after pre-award and post-award systems are implemented (date not yet determined).

• Attributes identifying the Expenditure Control Rule for a program and the Available Resource Basis for a SpeedType are now recorded in the Finance System.
• Expenditure Control is turned off during the month of July for fiscal year close to ensure budgets have been loaded and net assets have been rolled forward. When Expenditure Control is turned back on in August, all July transactions are checked against the designated Available Resource Basis.
• The Finance System performs a resource check to determine if there are adequate resources to process a transaction or if a deficit would result from processing it.
• Enhancements to the Finance System prevent certain transactions if a deficit would result. These include:
  • Journal Entry Posting (for actual, budget, and encumbrance journals);
  • Department Purchase Order (DPO) dispatch;
  • PO/SPO Requisition sourcing;
  • Non-PO voucher posting; and
  • Subsystem posting for subsystems that are not approved by the Associate Vice President and University Controller
• Conversely, certain transactions are allowed to post even if a deficit results. These include:
  • Payroll and Payroll Expense Transfers (PETs);
  • Procurement Card; and
  • Other subsystems approved by the Associate Vice President and University Controller (e.g., Central Travel System ticket charges, Month-end Allocations, BRS, Facilities, Mailing Services, Telecom).

A new Resource Inquiry page has been created in the Finance System to provide resource review at the org or program level, according to the specific Expenditure Control Rule. A Simple SpeedType query report has also been developed to enable users to check available balances in SpeedTypes prior to initiating transactions.

• List of Approved Subsystems - Approved subsystems can override expenditure control; meaning that a transaction from an approved subsystem will post even if a deficit results. (updated 12.3.07)
• Resource Check Matrix - Explains when resource check runs, when and to whom notification is sent when a transaction fails resource check due to insufficient resources, and how often and for how long a transaction is re-checked. (updated 9.6.07)
• Journal Entry Processing Flowchart - Details the journal entry resource check process. (updated 8.16.07)
• Learning Resources are available to assist with Expenditure Control processes, including:
  • Overview of the Expenditure Control process
  • Calculating Amount Available
  • Using Expenditure Control Attribute Change
  • Using Resource Inquiry
  • Reviewing Resource Check Failures
  • Using SpeedType Inquiry
• Frequently Asked Questions (FAQ) resource document - Covers policy, procedural, and technical aspects of Expenditure Control.(updated 1.19.07)

Additional Outreach
Regular dissemination of information about Expenditure Control, through vehicles such as the OUC Connections, the PSC Communicator, the Silver & Gold Record, and the campus-specific electronic communication services such as HSC Announce, Post Express, Buff Bulletin will continue through implementation of each phase and beyond as needed.

Progress Monitoring
The initiative's progress will be monitored by the Office of University Controller with respect to the:

• Need for additional training or communication;
• Need for additional enhancements to the Finance System related to this new initiative; and
  
• Need for additional modifications to financial reports.

Questions can be directed to expenditurecontrol.project@cusys.edu