1. New Department Chair Orientation August 15, 2014
BUDGET
101
New Department Chair Orientation
August 15, 2014
Diane S. Stephens, Associate Vice President
Department of Academic Resources and Planning
California State University, Northridge

2. Today’s Agenda Introductions California and CSU Budget Process
CSUN Budget
Fund Accounting Overview
Budgeting in Academic Affairs
Best Practices for Managing Budgets
Discussion Throughout!
Today’s slides:

3. California and CSU Budget Process

4. State and CSU
State and CSU focus on incremental budgeting – changes to base budget
CSU Board of Trustees presents support budget request to Department of Finance & Governor (November - December)
Governor submits budget request to legislature by January 10th
May revise of State & CSU budget to reflect April tax receipts
Legislature approves state budget by June 15 for Governor sign off & July 1 implementation—sometimes!

5. The CSU/California Budget Process

6. State and CSU

7. The CSU/California Budget Process
July – September for campus/CSU support budget development
October – November: BOT support budget review/submit to Department of Finance
January 10th – Governor releases budget
January – May: Lobbying for CSU
May Revise for State & CSU
August FIRMS budget submission for CSU
(jump off to start cycle again)

8. CSUN Budget

9. CSUN appropriation and tuition trends (in millions)

10. CSUN Tuition Fee Revenue and Support Appropriation Shift

11. Total Campus Operating Revenue - $500 Million

12. Our Campus Partners Self-supporting Enterprise entities include:
Tseng College of Extended Learning ($36M revenue)
Housing ($21M)
Parking ($9M)
Health Facilities ($200K)
Incorporated Auxiliary entities—501(c)(3) include:
The University Corporation ($35M)
University Student Union ($10M)
Associated Students, Inc ($7.6M)
North Campus ($.5M) & Foundation ($8M)

13. Campus Lottery Funding
The campus receives about $2.2 million per year in Lottery funding which is distributed to both Academic and Student Affairs

14. General Fund Operating Revenue- $353 Million

15. CSUN Student Fees State Appropriation $ 141,659,296 40% Tuition Fee
$ 174,396,000
Non-Resident Fees
$ 18,900,000
Doctoral and Business Grad Fees
$ 2,698,412
Tuition Fee Revenue
$ 195,994,412
56%
Other Student Fees
Application Fee
$ 1,500,000
Campus Quality Fee
$ 7,829,300
Health Services Fee
$ 4,250,550
Augmented Health Fees
$ 1,193,000
Misc Student Fees
$ ,000
Total Other Student Fees
$ 15,342,850 4%
Total Operating Fund Revenue
$ 352,996,558

16. Budget Planning Challenges
CSU and State Directives for Enrollment
Commitment to Access
Impact from Other CSU Campus’ Enrollment Practices

17. Budget Considerations
Enrollment growth
Faculty positions
Staff support
Operating expenses and equipment
Deferred Maintenance
Capital Planning
Technological Changes & Upgrades
Faculty Attrition
Retirement and Benefits

18. CSUN General Fund Budget Planning
CSUN budget preparation (multi-year based on Governor’s four year commitment)
Forecast tuition fee revenues by incorporating enrollment targets
Estimate mandatory and centrally managed fund increases
Budget request process tied to strategic initiatives
University Budget Planning Group (UPBG) and Executive review and discussions

19. Current Planning Environment?
University Budget News Website:

20. Fund Accounting Overview

21. Typical Funds in Academic Departments
Fees in Trust/General Fund (appropriations, allocations, and fee revenue) – 48501
State Trust Fund (includes ExL MOU revenues, IRA, etc.) – 496XX, 44XXX,etc.
Lottery Funds – technically State Trust…but…!

22. Typical Funds in Academic Departments
Auxiliary Funds (separate 501(c)(3) entities)
Corporation
Foundation
Others (not held in departments)
Campus Quality Fee
Course materials
Technology
Student support

23. General Fund Reminder Two major funding groups in the General Fund:
Base budget funding
One-time funding
Carry-forward balances

24. Budgeting in Academic Affairs

25. CSUN Policy on Fiscal Responsibility
Ensure that:
Expenditures don’t exceed available resources
Funds expended for intended purposes in appropriate time period
Use internal controls to protect from misuse
Correctly classify receipts and expenditures
Comply with campus policies

26. The Decentralized Model Principles
Communication and Disclosure
ERC Recommendation
College Budget Model
Clarity of Business Practices
Facilitate Sharing of Information and Open Communication
Balanced Budgets
Meet FTES Targets
Continuity/Consistency of Practices
Defensible Systems (audit readiness)
Accountability

27. ERC Recommendation
Open budget reporting and consultation process
Resources and allocations for all departments, centers, and programs
Contingency funds
Maintain
Communicate to department chairs

28. What CAN We Control? Focus on savings:
Part-time faculty budgets (often controlled by Deans’ offices)
Operating expenses—we can ALL do our part
Bulk purchasing (take advantage of scale economies)
Defer expenses
Eliminate unnecessary expenses (efficiency)
Share costs with others (“Let’s make a deal!”)

29. Determination of College Budgets
Prior year base budget
Budget adjustments (attrition, new hires, FTES increase funding, planned reductions)
Salary increases
Non-General Fund resources
Lottery budget
Extended Learning partnerships
Grants and contracts

30. College Budget Workbook
Budget summary—all funds
General Fund budget allocations (departments)
Department General Fund operating expenses
Salary worksheet
Part-time faculty budget model
Supplemental income from leaves and transfers

31. Salary Worksheet Why It’s Important to Track Salary Costs:
Academic Affairs—Salaries make up about 88% of General Fund Expenditures
Eight Colleges:
Salaries make up 92% of General Fund expenditures overall
Salaries range from 85% to 96% of General Fund expenditures among the eight colleges
Salary costs fluctuate—A LOT!

32. Department Budgeting Part-time faculty costs
Supplemental income from leaves and transfers (if applicable—may be an offset for college allocation of PTF to departments)
Instructional support salaries (TA, GA, SA)
Operating expenses
Supplies and services
Equipment
Travel/professional development
Contingency

33. BEST PRACTICES
Generating and Using the Right Information

34. Best Practices Effective scheduling SOC worksheet
Monthly reconciliation
Line item budgeting at departmental level
External funding
Contingency planning
“Wish list”

35. Effective Scheduling
Effective use of physical, fiscal, and human resources
Effectively deploy tenured and tenure-track faculty in order to maximize enrollments using “fixed costs”
Minimize part-time faculty and other short-term salary costs--limit “variable” costs and reassigned time
Monitor/eliminate “low enrolled” sections
Space utilization with University growth

36. Schedule of Classes (SOC) Worksheet
Schedule of Classes Worksheet
Both a PLANNING and REPORTING tool for Department Chairs
Combines data from multiple systems
Combines in worksheet that allows for:
Scenario-building (“What If…?”)
Determining cost of planned schedule
Analyze use of resources to achieve FTES target and support program priorities
Modeling new program costs
Users at multiple levels

37. SOC Worksheet

38. SOC Worksheet = Planning + Priorities

39. Monthly Reconciliation
PeopleSoft Tools
nVision® Management Reports
General Ledger (GL) Inquiry Panels
Timely review of expenditures
Reconciliation training
University Financial Assistants (UFA)

40. Line Item Budgeting at Departmental Level
Ability to track expenditures against budget by category using existing tools (PeopleSoft) with minimal effort
Comparison of original plan versus actual at fiscal year- end
Resources:
guide.pdf (See Chart of Accounts Reference Guide)
Most colleges and areas have a reference guide for most commonly used chartfield strings

41. External Funding Grant and contracts
Tracking and processing reimbursed time in timely manner
Emphasis on growing external funding as State support declines

42. Best Practices
Contingency planning
“Wish list”

43. Discussion and Questions

44. Contact Information
Diane Stephens
Ext. 5929
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