Finance Office

Managing your accounts

Systems and toolkits to help you keep an eye on accounts and finances

Need help?
Please send questions and comments about the ABC Toolkit to uitsabc@indiana.edu.
Email us for all other information about accounts.

UITS Managers' Accounts

"How much money do I have?" is one of the Finance Office's most frequently asked questions. Fortunately, there are reporting tools to help monitor and review your accounts.

Please use the following reporting tools to regularly review your accounts:

Monthly reporting

  • UITS monthly statements: available at the end of each month; provides month-end snapshots of different university accounts; contains archived reports

Up-to-date reporting

  • Balance and Transaction Manager (BaTMan): BaTMan enables you to quickly and easily review consolidated income and expense balances for your accounts/subaccounts and to drill down to the underlying balance details. It also provides significant flexibility and transparency—giving you a number of built in filters while allowing you to view all UITS accounts/subaccounts. To learn more, please watch our BaTMan training videos or open it up and click the "?" box at the top right of the webpage.

ABC

Activity Based Costing (ABC)
At UITS, ABC is an annual process that allocates costs (expenses) to our services and is used to better understand, analyze, and report on the cost of providing those services.

The ABC App

The ABC app helps determine both the total cost and unit cost of UITS services. Annually, UITS divisions update their service lists and provides them to the Finance Office (FO). The FO then loads the lists and expense data into the ABC app. Managers then use the app to allocate personnel and non-personnel costs by account/subaccount for their services. The FO uses the allocations to calculate total and unit costs for each service and to compare them to the results of the user satisfaction survey.

After the FO completes its analysis, final results are provided to Division Leaders.

Budget Construction

Indiana University runs on a 12-month fiscal year cycle (July 1–June 30). The OVPIT and UITS budget preparation cycle typically takes place each spring, starting in late January and ending in April. Please review the following for additional infomation:

Finance Office's accounts

The Finance Office uses account numbers to differentiate sources and purposes of funds. Download the UITS account cheat sheet to view the specifics.

Budget analysis
Managers and directors are expected to actively manage their budgets. This will help the Finance Office prepare forecasts. The Finance Office will then analyze the budget variance, which is the difference between the budgeted amount minus the actual transactions (cleared), pending transactions (encumbered), and projected transactions (forecast).

If the office discovers potential complications during analysis, it will contact the involved managers or directors to help resolve the problem and/or prevent them in the future.


Expenditure Review Committee -(ERC) 6

Over the past two decades, OVPIT has constructively financed much of the growth of IT services to IU through the Expenditure Review Committee (ERC) process.  ERC is an effective way of establishing pools of funds to invest in new strategic IT services that support the mission of Indiana University.  ERC encourages each team within OVPIT to look at which of their services can be repositioned for greater efficiency, operated in a less costly way, or eliminated.  The resulting pool of ERC funds returned will then be reallocated to fund strategic OVPIT offerings that go through the DivLead process of submission, evaluation/discussion, and recommendation to the CIO for approval and subsequent funding.  As we enter our third decade at UITS, a new ERC, ERC6, will allow us to adapt to new demands and enable the University to continue its mission of education and research.

The guiding principles of ERC6 are as follows:

  • ERC is an exercise that focuses on both effectiveness and efficiency.  ERC is effective in that it challenges each unit to continually evaluate their services and invest funds into activities that yield the highest return while reducing/shedding services that no longer add value.  It is efficient in that it encourages each unit to minimize the resources required to provide the offered service.  Both speak to the prudent use of University resources.   
  • Good management behavior underlies ERC6 and is critical to OVPIT being successful in its mission.  Attempts to “game the system” are counter-productive to our success.  Practices that benefit the division at the expense of OVPIT as a whole will be detrimental to our progress.
  • Administrative departments that support OVPIT will look for ways to eliminate or simplify low-value added activities in an effort to be better stewards of their own budgets.  Administrative departments evaluating the ROI of its own activities fit well within the spirit of ERC.
  • ERC6 DETAILS

    The ERC6 process will be in place FY 2019 – FY 2023 (5 years).   Since the budget process for FY 2019 begins January 2018, the Finance Office will provide ERC6 credit for any giveback of funds beginning January 1, 2018.   No ERC6 credit will be provided to givebacks approved prior to January 1, 2018.  ERC6 credit will not be given after June 30, 2023.

    Total required ERC6 giveback (by June 30, 2023) will be 20% of each Division’s Base budget as identified on January 12, 2018.  Base budgets will include General Funds, Student Tech Fees, and Strat Plan accounts.  [Note:  beginning FY19, Strat Plan account base funding were rolled into General Fund base funding as Strat Plan accounts were eliminated]

    Cash can be given back in lieu of/in addition to base funding.  Cash givebacks will have a 3:1 cash:base ratio ($3 cash = $1 base).  The source of cash is not required to come from the General Fund/Student Tech Fee/Strat Plan accounts identified in the ERC6 giveback base budgets.  Cash may be provided from Designated Funds (‘23’ accounts) or External Auxiliary funds (‘60’ accounts).  ERC6 credit for cash provided from a ‘19’ (General Fund) account will be provided if the giveback is made prior to January 1st of each year.

    The divisions participating in ERC6 will be Client Support & Services, Enterprise Systems, Learning Technologies, Networks, and Research Technologies

    The Finance Office will provide a “receipt” of an ERC6 giveback via email that provides the date of the giveback, amount given back, whether giveback was base or cash, base equivalent (if the giveback is cash) and the account/sub-account(s) from which the giveback was provided.

    The Finance Office will provide an ERC6 scorecard to the CIO and DivLeads periodically.  The scorecard will include the base budget for each Division (as identified on January 12, 2018), the calculated 5-year ERC6 savings required, and the ongoing ERC6 savings achieved/remaining.

    Administrative departments within OVPIT will not participate in the ERC6 process.  Past participation proved counter-productive to the mission of adequately serving the OVPIT units being supported.  Administrative departments will find efficiencies in other ways in order to provide the service required for each division to be successful in their objectives.

    The UITS Regional campuses will not participate in the ERC6 process.  Funding for each regional campus is required to stay within each campus budget.  Operational efficiencies found in the future will be reinvested into other needs on that same campus.

    CHANGES IN PROCESSES THAT WILL IMPACT ERC6

    There are employees, software and equipment currently cash-funded within UITS that should be considered for base funding and prioritized as a future use of ERC6 savings.  One of the goals of ERC6 is to base fund these needs as soon as possible.  Before budget construction each year, the Finance Office will work with the DivLeads to identify and document these needs for review and prioritization. 

    The year-end carryforward process used in past years will change.  Previously, if a division desired unspent budget at the end of a fiscal year be carried forward to the next fiscal year, the DivLead submitted a request document to the Finance Office that included account/sub-account, amount requested and the reason for the carry-forward.  The Finance Office was required to evaluate the merits of the request which is labor intensive, time consuming, and highly subjective.

    Beginning at the end of FY 2018, the Finance Office will automatically carry forward 50% of the year-end available balance in each division’s GF/Strat/STF account.  The remaining 50% will be swept and used to fund future cash commitments.   Sources of funds included in the available balance at year end (and therefore subject to the 50/50 keep/sweep process) include salary savings1, unused workstation funds, unused GENX and unused travel funding.  The funds carried forward can be used the following fiscal year at the division’s discretion.  The 50% swept by the Finance Office will not be counted as ERC6 credit.

    Exceptions to the 50/50 sweep process will need to be clearly identified in writing to the Finance Office by the requesting division by June 15, 2018.  Generally, exclusions from the sweep process will relate to life cycle funding of hardware/software that is material in cost. 

    1 There have been inconsistencies in how salary savings have been used in the past so clarification is required.  Beginning January 1, 2018, salary savings can only be used for the following reasons:

      • PTO payout for the terminated employee
      • Supplemental pay for an existing employee who is backfilling for a terminated employee
      • A bonus paid to a current employee who backfilled for a terminated employee
      • Paying a contracted worker to complete the work of a terminated employee


    *access restricted to Finance Office employees