Central New Mexico
Community College
Banner Non-Sufficient Fund
(NSF)Functionality
Training
July / August 2015
Agenda
– Changed Business Practices & Improved Budget Control
– Explain NSF Functionality
• What does it mean to me and my department’s budget?
• Timeline
• Process changes
–
–
–
–
Initiating Department
Business Office / Pre-Audit
Purchasing
Budget Office / Contract and Grant Accounting
– Q&A
2
What is NSF?
NSF stands for Non-Sufficient Fund
– When the NSF checking functionality is turned
on in Banner, purchase requisitions (neither
online nor paper) will not be able to turn into a
purchase order, if the cost account line item
does not have sufficient available budget
balance.
3
Business Practice Change
NSF functionality does change the way we
will manage budgets and process purchases
and related encumbrances.
CNM departments will no longer commit or
encumber funds with purchases beyond June
30th of any fiscal year.
This ensures that only current year budget
funding is spent.
4
Budget Control FY16
Ensure departments and programs
observe FY16 approved budgets.
Help departments and programs manage
operating budgets.
Improve accuracy of operating budget
reports.
5
Steps and Tools to
Improve Budget Control
Use Web for Finance (through myCNM)and Banner
Finance to become more familiar with operating
budgets.
Monitor operating budgets on monthly basis,
particularly encumbrances and Pcard uses.
When in doubt, ask questions of Budget, Purchasing,
and Business Office staff before committing resources.
If department staff skip these steps, Banner may
prohibit purchases.
6
What does this mean to my
department?
Departments will not be able to do any purchasing if
their budget is insufficient or overdrawn, unless the
NSF condition is overridden.
Some existing multi-year contracts (i.e., purchase
orders and blanket orders) will need to be
restructured, so they do not unnecessarily cause an
NSF alert.
Purchasing, Budget and Business Office staff will work
with departments on case-by-case basis to address
issues.
7
Timeline
NSF functionality was implemented on:
Monday, August 3, 2015
8
For Budget Issues:
If you receive a NSF message,
Review cost accounts for available funds.
Determine if funds can be transferred among
operating accounts for the purchase.
Assess whether the purchase be made over time, in
less costly components, to remain within FY16 budget.
Work with other departments/programs to combine
resources and share purchase costs/
If yes to the above, complete an IBR to cover purchase
cost and resolve the NSF condition.
9
Check Available Fund Balance
in Web for Finance
 To check available balance in Web for Finance, log into
My CNM, click the Finance tab, then click Finance SSB
under Budget /Finance Self Service.
10
Check Available Fund Balance
in Banner Form FGIBDST
11
Check Available Fund Balance
in Banner Form FGIBAVL (NEW)
12
Are there sufficient budget resources to
address the NSF condition?
 Expense accounts 8201 Contract Service, 8201A Consulting, 8202 Supplies, and
8235 Other Expenses, are pooled as account 82P1.
 Expense accounts 8203 Out of State Travel, 8209 Training, and 8242 In State Travel
are pooled as account 82P2.
 If the a balance of a pool account is sufficient, then the department may not have a
NSF condition, even the individual account balance is insufficient. The department
would complete an IBR to transfer operating funds.
13
If you receive the NSF
message
 Contact
– Budget Office – Rosalinda Montoya (ext. 51847) or
Jan Nixon (ext. 51836) for help identifying available
funds within FY16 budget.
– Contract and Grant Accounting
• Contact your assigned Grant Accountant in the
Business Office.
 Only these offices can override a NSF block and will do
so in limited circumstances.
14
For Purchasing, a purchase requisition
with a NSF condition can be completed
and forwarded to the approval process.
 A department control agent, business office pre-audit,
and purchasing staff can approve a requisition with NSF
condition,
 BUT, a purchase order with a NSF condition cannot be
completed unless and until the NSF is overridden by
Budget Office or Contract and Grant Accounting Office.
15
Purchase Order Revision
Revisions to existing purchase or blanket
orders may be processed:
– To decrease the amount of the purchase
order
– To close the purchase order
Where a revision is needed to increase
the amount or change accounting, budget
must be available.
16
Pre-audit rule for a REQ that has a NSF
condition
 Generally, Pre-Audit in the Business Office will deny a
purchase requisition (REQ) either on-line or on paper if a NSF
condition exists.
– If the on-line REQ is denied, the requestor and the control agent
will get an email notification.
 In an exception, Pre-Audit can approve a REQ with a NSF
condition if the department received pre-approval from the
Budget or Contract and Grant Accounting Offices.
– The pre-approval must be in writing, in an email or other
documentation from staff in the Budget or Contract & Grants
Accounting Offices and must be attached to the REQ.
17
Department online Purchasing
Requisition Process with NSF condition
Purchasing Requisition (PR) processing has not
changed.
Check form FPAREQN where you enter your
requisition.
If budget is insufficient, a message will appear at the
left bottom of the screen when you select the
Balancing/Completion tab.
With a NSF condition, PRs can be completed and
forwarded to the department control agent for
processing but will not be approved until the NSF
condition is resolved.
18
Department online Purchasing
Requisition Process with NSF condition
19
Department online Purchasing
Requisition Process with NSF condition
 If the control agent approves a requisition with NSF
condition, the below message will appear. The REQ will
forward to Pre-audit in Business Office.
20
Purchasing Requisition Process changes
with NSF condition
 Purchasing will be issuing purchase orders and blanket
orders as needed to reflect changes due to NSF
functionality.
 In general:
– Purchase orders and blanket orders will be funded
and expire no later than June 30th of the current fiscal
year.
– Contracts that need to be funded into the next fiscal
year will require a new purchase order or blanket
order with next year’s funding.
21
Transactions that do not go through the
NSF process: Miscellaneous
Travel airfares, travel reimbursement, P-Card
transactions, and other direct reimbursements
(like petty cash reimbursement) are not directly
affected by the NSF block.
However, once these expenses are paid, they
will impact your available budget balance. They
need to be closely tracked and monitored by
departments.
22
Transactions that do not go through the
NSF process: Plant Funds
Plant funds (Funds 9XXX) are not subject to the
NSF block.
Evaluation and implementation of the NSF
functionality for plant funds will be considered for
implementation in the next phase of this project,
likely for FY17.
23
Questions?
Training material will be available on the Budget & Fiscal Operations
web page:
https://www.cnm.edu/depts/budget-fiscal-operations
24