Budgets & Accounting-Business Office

Not everyone is an accountant, or thinks like one.  Here we offer you what we hope is straightforward information that will be useful to those of you managing budgets at the College.

Fiscal Year

The College’s fiscal year starts June 1 and ends May 31.

 In order for expenses and services to be recorded in a particular fiscal year, the goods must have been received by May 31st or the services rendered by May 31st.   Invoices for payment are first sent to departments to validate receipt, then returned to the business office for payment. Often invoices will be charged to Prepaid if they relate to a future year’s expense.     

Managing Your Budget

Budget reports are generated monthly and distributed to budget officers.  They can also be printed upon request (see Receiving Printouts below).  Shortly, they will be available online on MyLakeforest.  You should review them, monthly, to caution against overspending. 

Account numbers

The account numbers are made up of 10 digits, in the form:
    AB-CCCC-DDDD

An account either 1) closes at year end or 2) retains its balance into future years.  The beginning of your account number, the “AB” above,  indicates whether a balance carries forward.  

  • 00 Operating budget accounts close at fiscal year end. 
  • 01 A College designated fund or a federal grant fund that will carryforward any unspent balance.
  • 02 A fund whose use is restricted by the donor.  The balance will carryforward until all restrictions of the donor are met.
  • 03 A permanently endowed fund.
  • 20 Agency funds -  The balance will carryforward until dissolved. 

The accounts are generally sorted in the department or fund number order, which is the “CCCC” in the above structure.   

Each transaction should be coded with a 10 digit account code.  If you do not know the account number, please inquire with the Business Office.  
    
The last four digits, “DDDD” as shown above, refer to the type of revenue or expense.  These codes are also used to indicate assets and liabilities.  
   Do not use -1XXX accounts (revenue) accounts for expenses.  
    Never use an account number ending in -9XXX.  Call our office for assistance.

Generally Speaking

A department or fund may have several account numbers.  These different lines define types of revenue and types of expenses.  The description is identified by the ‘last’ four digits in a budget line.  The budget reports will show a summary section first, then a detail section by individual account.  If there are no transactions for a specific account number, that account number and its allocation will not show in the detail section.

When a negative number is a good thing

For expenses:  a negative number is a credit or reduction of expenses.
For revenue:  a negative number is a credit or an increase in revenue.

For restricted accounts, funds that carry forward balances into future years, a negative balance indicates funds available to spend.  This occurs when revenues (credits) exceed expenses.

Receiving Printouts 

Budget printouts show actual transactions year to date as compared to the full year’s budget; these are mailed to department heads monthly.  They are mailed around the middle of the month and will include all transactions to date.  Feel free to contact the Accounting Assistant or Associate Controller & Director of Payroll at any time to request a copy;  you can request either an entire department listing or individual line item.

If your department has access to the budget transaction reports on line, you will not receive the printouts unless you specifically request them.  Departments with Apple computers are not able to use the online budget application.

Transaction type codes

  •  
    • CG is an automatic charge generated through the billing process
    • FA is financial aid transaction generated through financial aid process
    • GF is a gift received through Development
    • IV is an invoice payment, a check prepared by accounts payable
    • JL is a manual journal entry made by the accounting staff
      LO is a student loan entry, posting to student accounts
    • LB is a payroll entry generated through the payroll process
    • MA is a recurring journal entry made by the accounting staff
    • MS is a miscellaneous charge to student accounts
    • RC is a transaction from cashier’s desk; could be deposit or petty cash.
    • VD is a voided accounts payable check


Transfers of funds or expenses

You may wish to contribute some of your available funds to a worthwhile project in another department or move transactions within your department.  These transfers can be accomplished by notifying Joyce or Doris in writing (email is fine).  You must supply the dollar amount, both account numbers, purpose of the transfer, your name and signature (if in writing) and date.  Please note:  the transfer request must originate from the person receiving the charge.

Preparation of new budgets

Department heads are sent requests in winter, due back to the President’s Staff member in March and ultimately to the Business Office.  The request package will include forms for student wages, computer equipment and software, personnel additions or promotions, and non-compensation expense accounts. 

Approval of new budgets

The President works with both College Council and the Board of Trustees to prepare an acceptable operating budget.  The preliminary budget approval is voted by the Trustees at the May meeting.  Departments will be notified after that meeting.  The final budget is approved by the Trustees in the fall, after registration information is available. 

Student Government Budgets

Students interested in the budget cycle for Student Government should contact Student Government Executive Board; although the business office is steward of Student Government funds and can provide reports, the remaining portion of this section on budget cycle pertains to the College’s operating budget.