Pennsylvania BANNER Users Group 2006

1. Pennsylvania BANNER Users Group2006 Bucknell’s Gift Processing-Finance Relationship in BANNER

2. General Announcements: • Please turn off all cell phones/pagers • If you must leave the session early, please do so as discreetly as possible • Please avoid side conversations during the session • Questions will be answered at the end of the session Thank you for your cooperation

3. Introductory Remarks • Bucknell University • Located in Lewisburg, Pennsylvania • Student Enrollment (FTE) 3,600 • Annual Operating Budget $193 million • 2006 Total Endowment $522 million • 2006 Gift Revenue $21.2 million • $19.8 million spendable gifts • $ 1.4 million deferred giving

4. Background • In July of 2004 Records & Gift Processing (RGP) at Bucknell University converted to the BANNER system to join the rest of its campus. This conversion also brought an awareness to other offices as how their vested interests would be impacted, as RGP would now have a working relationship with all BANNER modules.

5. Background • Before joining BANNER, RGP and Finance identified reconciling issues in gift revenue between what RGP recorded in its stand-alone database and what Finance had in BANNER. With RGP converting to BANNER, we immediately recognized the opportunity to reduce, and even possibly eliminate, these reconciling issues.

6. Background • RGP has five full-time staff members. With one direct supervisor, the staff has one person primarily responsible for gift entry, a second person for biographic entry, and a third person for pledge and biographic entry. All three are cross-trained to do biographic and pledge/gift processing. A fourth person is primarily responsible for gift receipt, secondary acknowledgement, and pledge reminder processes.

7. Background • What is a reconciling issue and what caused it?

8. Background • Reconciling issues were identified at the designation/fund level and also broader reporting levels, where Advancement and Finance showed different amounts of money. This was a problem!

9. Background • Reconciling issues were due primarily to gift adjustments that were not always recorded the same way in both systems. BANNER promised to alleviate these headaches.

10. Background • Prior to BANNER, approximately a third of one person in the Finance Office was dedicated to gift processing with clean-up at the end of the year. • Now, the Finance Office staff has divide and conquer approach to gift accounting. The process is split between the Accountant for daily reconciliation of clearing accounts, Associate Controller and Controller for oversight of gift/pledge processing in BANNER-Finance. In total, approximately half to three quarters of one person dedicates their time to gift accounting.

11. The Goal • If, for example, Finance says it has $1,000,000 total in the general ledger, RGP wants $1,000,000 total in gifts (and pledge payments) recorded in the Advancement module and to have each designation/fund show equal amounts in the Finance and Advancement modules.

12. Building the Relationship Outside BANNER • During conversion, RGP and Finance got to know each other and learn respective office outcomes but also agreed to commit to the overarching common goal of having equal charitable contributions recorded in both modules.

13. Building the Relationship Outside BANNER • Advancement produces the VSE report through an adhoc report and do not use the VSE coding in BANNER. • Wouldn’t it be really cool if the total for VSE was the same, to the penny, as what the gift revenue is in the financial statements?!

14. General Operation • All charitable contributions received by Bucknell are processed by RGP and fed to Finance using ADPFEED. • Currently, pledges are NOT fed to Finance. • After gifts are entered in BANNER and fed to Finance (daily), paper gift reports are produced and sent by RGP to Finance along with checks, cash, etc…for deposit to the bank.

15. Building the Relationship Outside BANNER • Our relationship outside BANNER is continuous. As gifts and pledges are secured for new purposes, the offices (along with Finance), regularly communicate how (and sometimes if) a new fund can, or should, be created within the University’s budget structure and considering donor intent.

16. Building the Relationship Inside BANNER • The relationship inside BANNER between RGP and Finance comes together through five data areas: 1. Designations (ADADESG)/Funds 2. Gift/Payment Types (ATVGIFT) 3. Pledge/Vehicle Codes (ATVPGVE) 4. Pledge Category Codes (ATVPCAT) 5. Pledge Conditions (AGAPCON)

17. Designations/Funds • Designations/Funds Funds are created first by Finance in the general ledger, and then the designation is created in ADADESG for RGP’s use.

18. Designations/Funds • The designation field only allows 10 characters. Bucknell’s format is that the first character is a letter to represent the nature of the fund, such as unrestricted (U), designated (D), restricted (R), endowed (E), other (O), etc. The next six characters is the six-digit fund number created by Finance. The last three characters, if needed, as a suffix.

19. Designations/Funds • For example, our Annual Fund is coded U110011000, where U means Unrestricted, 110011 is the fund number created by Finance as part of the FOAPAL. The last three characters, 000, are used but are not necessary to further define the designation, i.e., 001, 002, 003.

20. Designations/Funds • Use of the six-digit fund number helps in communication between offices. When Finance has a question about fund number 110011, RGP can quickly and easily identify the fund in ADADESG and see both the designation code and description.

21. Designations/Funds • An example of when we use a three-digit suffix within the designation code would be for our gifts-in-kind. All GIK designations begin with K126499. The three-digit suffix is then used to further define the purpose of the GIK. • For example, a GIK for the Art Gallery would be entered to K126499001, a GIK to the Chemistry Department would go to K126499002, a GIK to Residential Life would go to K126499003, etc… • Since GIKs are fed to Finance but do not impact the ledger totals, we are able to record all GIKs to one fund number (126499).

22. Designations/Funds • GIKS, along with Volunteer Services gifts, do not effect BANNER-Finance ledgers, via ADPFEED, because these two gift types are controlled through a Rule Class code on each gift type in ATVGIFT (Gift/Payment Types). The rule code will credit an account code while debiting an account code within the same FOAPAL thus having no effect to the ledger

25. Designations/Funds • Once the designation is created, then a campaign code is assigned. • The gift/pledge can now be entered in BANNER.

26. Gift/Payment Types (ATVGIFT) • Gift Type codes are stored in the ATVGIFT table, a table owned by Finance. • Bucknell uses 63 different Gift Types. • Many Gift Types were developed based on a combination of how a gift can be made (check, credit card, cash, securities) and Vehicle Codes (ATVPGVE). Which is all driven by VSE reporting.

27. Gift/Payment Types (ATVGIFT) • At Bucknell, it was decided early in the conversion process that Finance will own this table. • The reason for this decision was that this table will manage how every transaction in BANNER-Alumni feeds into BANNER-Finance using the rule codes assigned to each gift type. Thus directly impacting Bucknell’s Financial Statements.

28. Gift/Payment Types (ATVGIFT) • For example, we have a Gift Type code of CK for “check” but also a code of AK for “gift annuity/check” for VSE reporting. • We also have specific codes for payroll deduction and matching gift as specifically defined by BANNER-Alumni.

29. Gift/Payment Types (ATVGIFT) • One advantage of the “exploded” gift types is that Finance can assign a Rule Code for correct recording to the general ledger for each combination. • Since the Rule Code code plays such a significant role in the Advancement-to-Finance feed process. (Again, ATVGIFT is owned by Finance.) Any additions, deletions or changes to the table are done as a joint effort between Finance and Advancement.

30. Gift/Payment Types (ATVGIFT) • Given our use of 66 Gift Types and the Rule Class assigned, ATVGIFT is the key connection between both offices within BANNER. • Finally, it is important to note that Bucknell decided early not to use the canned rule codes as delivered in BANNER. Bucknell developed their own rule codes while verifying with the action-line and a consultant the actions each rule code. • (this will be further discussed later in the presentation)

32. Pledge/Gift Vehicles (ATVPGVE) • Most of Bucknell’s Pledge/Gift Vehicle codes (ATVPGVE) are for planned giving purposes, such as Deferred CGA, Flexible CGA, Charitable Lead Annuity Trust (CLAT), Charitable Remainder Unitrust (CRUT), etc... • We have a specific code for Third Party Pledge Payment, since BANNER requires it.

33. Pledge/Gift Vehicles (ATVPGVE) • ATVPGVE is a table that is owned by Finance. Any additions, deletions or changes to the table are done as a joint effort between Finance and Advancement.

35. Pledge Category Codes (ATVPCAT) • Bucknell uses three codes for Pledge Category: Irrevocable, Revocable and Conditional. • The use of these three codes is determined by input from Finance, Gift Planning and any other appropriate fund-raising office. • ATVPCAT is owned by Advancement, however changes to this table are done with input from Finance.

37. Pledge Category Codes (ATVPCAT) and Pledge Conditions (AGAPCON) • It is within ATVPCAT that the conditional flag is set. At Bucknell, we decided to have a separate code for Conditional and check the conditional flag. • If you use the conditional flag, BANNER requires a Condition Type to be entered on Pledge Conditions (AGAPCON). We simply use a type of Conditional and enter the terms of the condition. Advancement can also easily indicate with radio buttons on the form if the condition was met or not.

38. Pledge Category Codes (ATVPCAT) • A special note about Pledge Category codes… • BANNER requires that one Pledge Category code be selected in the Statement of Giving and Pledge Rules block of the Advancement Control form (AGACTRL). • You must enter a Pledge Category code for Unconditional Pledge Category Definition. We use the code for Irrevocable. Deciding which code to use depends on your operation.

39. How does this information feed to BANNER-Finance?

40. Impact to Ledger – Gift/Contributions • Each contribution that feeds into BANNER-Finance has its own rule code as defined on ATVGIFT. • As each transaction posts to the BANNER-Finance, no transaction will post directly to a cash account. Each transaction posts to a clearing account to be reconciled at the end of each month.

41. Impact to Ledger - How does the rule code know what to do? • The rule codes are designed to credit/debit a transaction in the operating ledger while posting the offsetting transaction to a clearing account in the general ledger. • This is managed by the process codes and modifiers that are behind every rule code. Again, we did not use the canned rule codes as supplied in BANNER.

42. Impact to Ledger - How does the rule code know what to do? • Example: $100 cash gift from Mr. Big Shot A) The transaction would be: Debit - Cash Awaiting Deposit-Alumni Credit - Annual Fund Gift Revenue B) When the check gets deposited at the bank and the deposit slip is returned, then an entry will be done is: Debit – Bank Cash Credit – Cash Awaiting Deposit-Alumni

43. Impact to Ledger - How does the rule code know what to do? • Example: $10,000 CGA stock gift from Mr. Big Shot A) The transaction would be: Debit – Stock Clearing-Alumni Credit – Big Shot Endowment – CGA Revenue B) When the check gets deposited at the bank and the deposit slip is returned, then an entry will be done is: Debit – Bank Cash Credit – Stock Clearing-Alumni

44. Impact to Ledger - How does the rule code know what to do? • First we will look at the General Ledger

47. Impact to Ledger - How does the rule code know what to do? • Next the Operating Ledger

49. Reconciling: • By having the offset transaction post to clearing accounts, each transaction is reviewed at a high level for posting correctly. • Many transactions are reviewed at a detailed level (planned giving contributions, stock gifts, athletic gifts, new funds held in trust by others, etc.) to ensure proper accounting from the point of receipt.

50. XR1 Current YTD Totals Last YTD Totals Dollar Difference ----------------------------------- ---------------------------- ------------------- I. TOTAL RECEIPTS Outright Gifts 10,732,328.63 15,667,015.92 -4,934,687.29 Pledge Payments 10,448,361.04 14,798,789.00 -4,350,427.96 Total Receipts 21,180,689.67 30,465,804.92 -9,285,115.25 II. TOTAL PLEDGES Pledges Due by 6/30 1,291,759.26 1,856,443.37 -564,684.11 III. TOTAL COMMITMENTS 22,472,448.93 32,322,248.29 -9,849,799.36 IV. PLEDGES DUE AFTER 6/30 77,186,434.36 65,693,459.86 11,492,974.50 1. Bucknell Fund Unrestricted Total Receipts 4,093,859.41 3,966,285.97 127,573.44 Pledges Due by 6/30 209,742.76 84,946.39 124,796.37 Total Commitments 4,303,602.17 4,051,232.36 252,369.81 2. Designated Funds Total Receipts 2,358,205.02 2,085,019.49 273,185.53 Pledges Due by 6/30 31,523.46 1,536.51 29,986.95 Total Commitments 2,389,728.48 2,086,556.00 303,172.48 3. Restricted Annual Total Receipts 2,077,784.52 1,920,132.93 157,651.59 Pledges Due by 6/30 70,110.84 26,552.73 43,558.11 Total Commitments 2,147,895.36 1,946,685.66 201,209.70 4. Endowment Total Receipts 8,141,151.17 8,281,066.55 -139,915.38 Pledges Due by 6/30 610,181.29 11,164.72 599,016.57 Total Commitments 8,751,332.46 8,292,231.27 459,101.19 5. Facilities Total Receipts 3,614,605.30 5,525,110.57 -1,910,505.27 Pledges Due by 6/30 316,479.00 1,696,622.43 -1,380,143.43 Total Commitments 3,931,084.30 7,221,733.00 -3,290,648.70 6. Undesignated Total Receipts 309,368.39 8,220,588.02 -7,911,219.63 Pledges Due by 6/30 21,428.57 29,800.94 -8,372.37 Total Commitments 330,796.96 8,250,388.96 -7,919,592.00 7. Holding Total Receipts 454,843.77 186,466.42 268,377.35 Pledges Due by 6/30 32,293.34 5,819.65 26,473.69 Total Commitments 487,137.11 192,286.07 294,851.04 8. Gifts in Kind Total Receipts 96,412.26 261,404.17 -164,991.91 Pledges Due by 6/30 Total Commitments 96,412.26 261,404.17 -164,991.91 9. Volunteers Total Receipts 34,459.83 19,730.80 14,729.03 Pledges Due by 6/30 Total Commitments 34,459.83 19,730.80 14,729.03