Overview: Manually Forecasting Future Expenditures and Available Balances without CMS

If you or your team are not ready to transition to using the Commitment Management System (CMS) for managing available fund balances and forecasting future expenditures, reference the process below.

Stanford's stewardship responsibility demands that we prudently manage expenditures charged to funds to:

  • ensure they meet the fund's restrictions, and
  • ensure that we accomplish the goals contemplated when the budget was set (whether or not we are using sponsored funds).

Learn how to: 
Forecast future expenditures while considering commitments, in order to determine if funding will last through the project period (or fiscal year). This becomes more important the closer one gets to the end of the project period or fiscal year.

For:  Managers of sponsored and non-sponsored project funds not using CMS

 


Review Actual Expenditures


Review actual expenses recorded on Expenditure reports available in ReportMart3:

Summary Reports:

  • FIN_EXP_275_Award_View
  • FIN_EXP_276_Project_View
  • FIN_EXP_277_Task_View
  • FIN_EXP_280_Month_By_Month_Drill
  • FIN_EXP_281_PTA_Interactive_Drill

Detail Reports:

  • FIN_EXP_149_Qtrly_Exp_Cert
  • FIN_EXP_279_Transaction_Detail
  • FIN_EXP_285_Mo_Detail_Statement

Identify needed corrections and make a note of the effect. Follow up as needed to correct errors.

For help interpreting expenditure reports, visit the DoResearch web site.


Review Commitment Data


See Overview: Commitment Data on Oracle Financials Reports to understand:

    • Commitment types and their descriptions
    • Kinds of transactions for which commitment data is NOT included on Oracle Financials reports
    • Which Oracle Financials reports include commitment data
    • What report search criteria (dates/periods) to use to see commitment data on reports

Run the Monthly Expenditure Statement available in ReportMart3:

    • FIN_EXP_285_Mo_Detail_Statement

Review commitment data details and identify needed corrections (if any). Make note of the effect and follow-up to correct errors.

Suppress lingering purchasing commitments that you do not expect to result in an actual cost. See How To: View or Suppress Commitments on an Approved Purchase Order.

Consider commitments that will not become actual costs in the projected period (for example, a purchase order related to a monthly payment that goes out beyond the fiscal year).

Consider associated burden rates that should be applied to the estimated future costs (e.g. fringe benefits, indirect costs, etc.).


Estimate Future Activity & Other Costs


Consider un-posted transactions (not yet recorded as actuals) that do not create commitments (e.g. iJournals, iOU transactions, PCard, Feeder Journals) and estimate costs.

Consider other commitment data not available on Oracle Financials reports (e.g. hourly wage payments, future planned vacation credits, additional recurring pay, etc.) and estimate effect.

Consider other future planned activities (e.g. future hires, future salary increases, purchases that have not been initiated, future travel, etc.) and estimate costs.

Consider associated burden rates that should be applied to estimated future costs (e.g. fringe benefits, indirect costs, etc.).


Understand Remaining Balance Calculation


Review budget (i.e. Expense Control), actual expenditures, commitments, and remaining balance calculation on the Monthly Expenditure Statement. Field descriptions are as follows:

Field Description
Column Heading Description
Expense Control (A) The amount entered in Hyperion Budget as of September 1, adjusted for any iBudget entries, or the sponsored or capital budget, as appropriate.
Actual-To-Date (B) Actual expenditures to date (based on the beginning and ending periods requested, usually project-to-date or fiscal-year-to-date).
Outstanding Commits (C) Expected costs associated with future transactions recorded by the Oracle Financials system.
Remaining Balance (A-B-C) The amount budgeted (Expense Control in column A) less expenditures to date (Actuals in column B) and outstanding commitments (from column C).

Note -  The values for expenditures, budget, and commitments that appear on Oracle Financials reports is based on the prompts (e.g. FTD, PTD, or Range) and the Award type entered. For a detailed explanation, see Resources & Job Aids: Understanding How Expenditure, Budget & Commitment Data Appear on Oracle Financials Reports.


Forecast Remaining Balance


Use Excel or other means to adjust Remaining Balance Calculation (Expense Control – Actuals – Commitments) by the effect of all expected future transactions estimated above.

Determine needed actions. Adjust plans based on calculated remaining balance (e.g. seek alternate funding, etc.).

Note – The Commitment Management System (CMS) enables online access to all types of commitment data and provides an interface for users to forecast future expenditures and remaining balances. For complete details, visit Stanford's CMS web site.
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