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FY2008

Budget Preparation Training

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Housekeeping

• Please turn cell phone, pagers, blackberries off• Restrooms• Ground rules

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Agenda

Overview Budget Cycle Preparation Process Questions

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OVERVIEW

Overview

Why is a budget important?

Why are we being asked to participate in the budget?

This budget process is meant to be an inclusive opposed to an exclusive process. By contributing to the process, it allows financial managers to be accountable.

A budget is an important tool because it provides financial managers a baseline for operating for a fiscal year in order to control expenditures.

Budgets also provide a tool for forecasting future expenditures.

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Who should participate in the budget process?

Areas impacted Current Unrestricted (fund 110000)

Auxiliary (funds 310000, 330000, 340000, 360000, 370000)

Areas not impacted Temporary Current Unrestricted (funds 14xxxx)

Grants and Contracts (funds 2xxxxx)

Plant (funds 9xxxxx)

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How do I determine if I participate?

Banner

Website

FY2007 Operating Budget Book

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What do I need to get started?

Current budget

Labor distribution

Budget information from your area

Current fee list TSJSECF – Section Fee Setup

FGJOACR – Op. Ledger with Ranges

FGIBDST – Organization Budget Status

Purchase requests

Travel requests

Student workers

NHJLDST – Labor Distribution

Bi-weekly, semi-monthly, faculty, student worker

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Changes in FY2008

1. Line item budgets

Current610000 – Salaries and Wages

620000 – Employee Benefits

FY2008

611000 – Faculty Salaries

611100 – Staff Salaries

611700 – Classified Wages

621100 – Kentucky Teachers Retirement

621200 – KTRS Overmatch Contribution

621300 – Optional Retirement

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Changes in FY2008 (cont)

700000 – Operating Expenses

Current71000B – Supplies

710400 – Equipment Repairs

710800 – Office Supplies

75000B – Travel

750010 – Travel In State

750020 – Travel Out of State

FY2008

2. Pooled budgets

Changes in FY2008 (cont)

3. Capital Pools

5. Formal process

4. End user participation

Capital pools will be established to allow for a repair and replacement program for purchases over $3,000 such as:- Computer Equipment - Equipment/Furniture

- Network Equipment - Audio/Visual Equipment

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BUDGET CYCLE

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Two Components of Budget Cycle

Preparation July to DecemberAll the planning is prepared during the first six months.

Scenarios/Assumptions are developed.

Execution January to JuneBudget is entered and reviewed.

There will be several iterations of the budget. Scenarios/Assumptions that were developed in the first half of the cycle might have changed.

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Budget Cycle

June

May

April

March

February

January

December

November

October

September

August

JulyFinal budget approval by Board of Regents

Board of Regents Approval of budget guidelines

Units submit proposals for funding requests

Unit Budget Hearings

Funding notification to Units

Units enter budgets

Budget guidelines developed

Complete preliminary forecast

Update analytical tools and prepare budget assumptions

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TimelineDISTRIBUTE DUE

Budget Preparation Training Nov 1, 3, 8, 10, 16

Distribute Auxiliary Budget Packets Nov 1, 2006 Dec 21, 2006

Capital Pool Proposals Nov 17, 2006

Revenue Base

a. Fee proposal process

i. Mandatory Oct 31, 2006 Nov 30, 2006

ii. Non mandatory Oct 31, 2006 Nov 30, 2006

b. Revenue projections Oct 31, 2006 Nov 30, 2006

Position Base

a. Unit position base verification Nov 17, 2006 Dec 21, 2006

b. Proposals for new positions* Nov 2, 2006 Dec 21, 2006

c. Position reclassifications* Nov 2, 2006 Dec 21, 2006

d. Reorganizations/Restructing* Nov 2, 2006 Dec 21, 2006

Funding Proposals

a. Non-capital Proposal Requests Nov 1, 2006 Dec 8, 2006

b. Request for Facilities Changes Proposals** Nov 1, 2006 Dec 1, 2006

c. Temporary and Permanent Funding Proposal Requests Nov 16, 2006 Dec 21, 2006

*This form goes directly to HR **This form goes directly to Facilities

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Document Flow

Financial Manager

Dean Provost

Financial Manager Vice President

Office of Budgeting

Unit=Organization Group=Direct Reports to President

Manager, Director, Assistant Vice President

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PREPARATION

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Areas of Preparation

Revenue

Funding

Position

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Revenue

Revenue is defined as a stream of income that comes into the University. It can be broken down into several categories.

State appropriation

Tuition

Government grants and contracts

Mandatory fees

Non mandatory fees

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Mandatory Fees

Mandatory fees are a type of revenue that every student is required to pay. These fees are different from tuition.

ExamplesTechnology FeeStudent Recreation FeeAthletic Fee

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Non Mandatory Fees

Non mandatory fees are a type of revenue that not every student is required to pay. These fees are charged for specific purposes.

ExamplesClass FeeTesting FeeTranscript

Graduation FeeOrientation FeeReturned Check Fee

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Position

Budgeting for positions at the beginning of the year is beneficial because it allows organizations to anticipate their needs.

Salary Non-salary Contractors Work study

It allows for being proactive versus reactive.

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Funding

There are four components that make up a funding request.

•Capital Requests•Non Capital Requests•Facility Changes•Operating Budget

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Capital Requests

Over $3,000• Computer Equipment• Network Equipment• Audio/Visual Equipment• Equipment/Furniture

These are one time expenditures that should not be funded out of an operating budget. In FY2008, they will be funded through pools.

(Please note that there might be a need to request a change in facilities when these items are purchased.)

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Non Capital Requests

Under $3,000• Computer Equipment• Network Equipment• Audio/Visual Equipment• Equipment/Furniture

Typically these are one time expenditures that will cause a baseline budget to change each year.

(Please note that there might be a need to request a change in facilities when these items are purchased.)

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Request for Facilities Changes

A Request for Change to Facilities is required when one or more of the following is needed for any item in any EKU facility:

• Alteration• Addition• Moving to another or within a facility• Capital Maintenance - completed cost of project

will be greater than $500

Typically this is a one time expenditures that will cause a baseline budget to change each year.

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Operating Budget

Maintenance and operating changes• Permanent

A ongoing addition of monies to an operating budget.

• ReallocationAn internal reassignment of funds.

• TemporaryA one time infusion of additional monies to an operating budget.

Planning, Planning, Planning

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THE PROCESS

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Now I know the components, what do I do?

Forms

Forms

Forms

Forms

Forms

Forms

Forms

Forms

Forms

Forms

Forms

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www.financialaffairs.eku.edu/budget/forms/

Website

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Forms

1. Capital Request

2. Fee Request

3. Reclass/New Position Request

4. Non Capital Request

5. Request for Facilities Changes

6. Temporary and Permanent Funding Requests

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QUESTIONS?

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Contact

Karen Neubauer

Executive Director of Budgeting

622-4642

Karen.Neubauer@eku.edu

Emily Fogg

Budget Analyst

622-4642

Emily.Fogg@eku.edu

www.financialaffairs.eku.edu/budget

budgeting@eku.edu