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Comptroller's Office
University of Pennsylvania
Suite 312 Franklin Building
3451 Walnut Street
Philadelphia, PA 19104
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[ Accounting ]

Section at the Bottom of Each Report
RCM Model

The other major change you will see in the “revised RCM Model” BEN Financials reports is the addition of a new section at the bottom of each report, below the row containing the Current Year Operating (Surplus) or Deficit.

We have added these lines to the BEN Financials reports in order to reflect and account for the existence and disposition of “carryforward” surpluses and deficits that were previously not reflected in our budget model.

In the past, prior to the advent of FinMIS, our budgets often assumed that each year’ s revenue and expense would always match, so that a Responsibility Center’ s opening budget balance would always start each year at zero and end each year at zero. Moreover, in budget planning we generally paid relatively little attention to any School/Center balance sheet activity that was recorded in “GENLED.”

We now recognize that each School and Center’ s operating performance needs to be evaluated in the context of that School or Center’ s actual operating results, including actual operating surpluses and deficits, as well as any material changes in the School or Center’ s balance sheet that has an impact on operating balances.

We also recognize in our “Revised RCM Model” that there may be times when prudent management dictates that a School or Center should not plan for budget balance, but rather for the generation of a surplus (or even, very rarely, a deficit) in one year to be used (or offset) in a subsequent year.

We also want to encourage every School and Center to pay more attention to managing its cash position as well as its budget.

This section in the “Revised RCM Model” BEN Financials reports provides the information that will enable Schools and Centers to plan and manage in this broader context. The new lines account for any final year-end adjustments made to a School or Center’ s operating balances, show the current year cash effect of any School/Center financial activity that was not included in the Operating Surplus (or Deficit), and then present the resulting School/Center Current Year Net Cash Position, Prior Year Cash Position (if any), and Cumulative Cash Position.

The lines called “Cash Position” are similar to the starting and ending carryforward lines that have appeared in prior versions of the various BEN Financials reports. Carryforward may now be permitted, at management discretion, in most fiscal-year-based funds. As before, carryforward is not permitted in the 000000 Fund or the 000001 Fund, and is not applicable for project-based funds. Note that carryforward amounts will only appear on reports that are run at the appropriate level for the fund involved. For example, a report run by “PROGRAM” will not show carryforward since the carryforward is held at the “ORG” and “FUND” (and sometimes “CREF”) level but never by “PROGRAM.” Carryforward by CREF (“Center Reference”) will be shown only for those funds that funds-check to the level of “Center Reference”.