FY2008 WEB-BASED BUDGET DEVELOPMENT PROCESS

“A” FUNDS

Developed and Presented by The Budget Office

&eBusiness Solutions

2

Budget Office Objectives

1) Provide convenient tool for submitting base budget changes

2) Establish the FY08 base budget amount for each unique Department/Fund & object code combination

3) Improve data control and processing: Safeguard core data Reduce consolidation errors Better use time verifying budget information - not creating

spreadsheets and pasting changes New for FY2008 – additional alerts to indicate errors on

accounts that are out of balance

4) Allow sufficient time to compile the Board of Trustees Budget Document

5) Enable an accurate and timely posting of FY2008 base budget to the general ledger

General Information – Tuition & Fees

Tuition & FeesRequest for changes was due March 9Academic units – Tuition estimates Three years of tuition data available by semester in DataWarehouse Unless there is a known decrease in student enrollment, units can plan tuition

budget that is AT LEAST the amount it is this year If tuition does not look reasonable we will return it or increase it in

consultation with the Provost/VPRHS offices

Failure to budget tuition at the expected level results in a significant variance of budget to actual, increased carryforward, and causes the recalculation of the tax to be inaccurate

University tuition increase Amount of increase unknown at this time

House Budget - HEPI cap (5%)

General Information – Pay Package

Pay Package & Retirement Currently, the House Budget includes a 3% pay increase-

across the board for all classified employees and ‘without uniformity’ for unclassified

The State only funds a portion of the pay increase and the difference will have to be covered by tuition revenue

The employer portion of the retirement contribution goes up .5% beginning July 1, 2007 and a possible 1% additional increase to cover the other post-employee benefits (OPEB)There are no new funds allocated to cover this increase

General Information

Service Units Appropriations (31500) were removed and placed in 81150

Academic Units FEI funding added to appropriation (31500)

All UnitsE funds

A review of all E funds as of March 31 was completed in early April Units with deficit balances were notified that these must be resolved by

fiscal year end Another review will take place in late May

6

February 28, 2007 budget is the starting point “Freeze” on permanent transfers was February 28 Units can still make non-recurring transfers – but

any changes since March 1 are not reflected in the base FY2008 budget

Why this date ? More than half-way through the fiscal year Fall tuition is in, tuition reports provide ability to

estimate for Spring Allows time to complete budget adjustments and

prepare the web-based system

Budget Development Basics

Budget Office Adjustments – NON-RECURRING Examined all non-recurring budget transfer changes processed

through February 2007

Removed non-recurring 3’s Within responsibility - 36400/36500Outside responsibility - 363XX/368XXCarryforward 31533/31534

Removed 8XXXX transfers other than the tax codes For the Evening Program under RCCE, put back in an ESTIMATE for transfers out 86100, and put back in the offsetting ESTIMATE for transfer in to the academic units who participate

To offset changes in resources, expenditure objects were changed If the BD could be reversed back to the expenditures objects that were used,

they were offset If we could not tell what object was used, 50000 was offset

Non-Recurring Budget Changes

8

Budget Office Adjustments –RECURRING

Recurring 3’s:Within responsibility - 37400/37500Outside of responsibility - 373XX/378XX

Rolled up to tax For service units, this increased the tax in 81150 For academic units, this created a tax in 81150,

or if the source is FEI funds, this increased state appropriations (31500)

RevenueBudget Office left revenue budgets unchanged except for two

units with budget transfers that offset revenue to 3’s.

Recurring (Permanent) Budget Changes

For the FY2008 base budget development - the Budget Office moved all permanent transfers to the tax except FEI transfers

Examples: If an academic unit received permanent FEI funds, the source

was 31500 If an academic or service unit received a permanent transfer

from any unit, the source was 373XX If an academic or service unit sent a permanent transfer to any

unit, the transfer was 378XX Permanent transfers inside a responsibility- 37400/37500

worked the same way – the tax was shifted one department/fund to another

Permanent Budget Changes – Impact on Tax

Tax

Academic Units Tax out was recalculated based on new allocation factors No change was made to the method of calculating the tax

Service Units Tax in has increased to account for removal of state appropriation – this has

NOT changed the amount of resources available No additional resources are allocated at this time

Tax

FY2007 Base 86150 $ 111,526,442

FY2007 BOT Allocations – Increased 86150 $ 8,679,193

FY2007 Total Tax $ 120,205,635

FY2008 Base 86150 $120,205,635

Web-based Budget Development Tool

WEB BASED BUDGET

13

Change existing resource and expense budgets within current allocationUnits cannot use 31500, 31525/31526, 31534/31533 or tax codes 81150/86150Units should not budget any pay package increaseUnits may budget retirement increase of .5%

Enter unit dollar changes and comments at the object code level

Budget additional resources Excluding the University tuition increase and carryforward

Drill down on Dept/Fund to see all changes processed by the Budget Office

New for FY2008 – Download all data to an excel file

Add object code for a new revenue or new expenditure budget

Establish new Dept/Fund accounts and budgets *Must submit account memoranda by May 4, 2007

Make comments for Budget Office and for unit records

Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level

Units Can…

Object Code 50000

Units may need to budget and/or reallocate amounts in 50000

This object code may be used but should be reserved for holding funds that do not have a specific use at the time the budget is developed

15

Unit budgets are changed and comments are provided, if necessary, at the object code level by May 4, 2007

Account memoranda are submitted for newly established Department/Fund accounts

Unit budgets do not have debit amounts in revenue object codes and credit amounts in expenditure object codes

All resources and expenditures are equal

You send your budget analyst an e-mail indicating you have completed your budget entry

New this year Units will check box to indicate actions are complete Budget Office will lock responsibility at completion

Your Work is Complete When…

Web-based Budget Development Dates

Web-based budget tool available for all units beginning Monday, April 16

Budget Office will email when the system is up

All units will have until Friday, May 4 to complete budget changes

When you are finished, please email your budget analyst and check box on web-based system to indicate completion

QUESTIONS