1. FY2011 WEB-BASED BUDGET DEVELOPMENT PROCESS “A” FUNDS

2. Budget Office Objectives 1)Provide convenient tool for submitting base budget changes 2)Establish the FY11 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 4)Account for recentralization of the budget for state appropriations and Fall and Spring tuition 5) Enable an accurate and timely posting of FY2011 base budget to the general ledger

3. General Information – Tuition & Fees Tuition & Fees  Approved tuition and fees on Bursar’s Office website  New for FY2011 – Fall and Spring tuition is budgeted centrally. Academic units receive a budget based on February 28, 2010 freeze date  Academic units will receive tuition for Summer I and Summer II University tuition increase was 6.9% for undergraduates and graduates  Academic units do NOT budget for university increase  Provost will use tuition reports to review budgeted tuition and may allocate additional funds or move budgets between academic units  Tuition increase allocated to Board approved University initiatives including Budget Reallocation Initiative

4. BOT Approved Undergraduate Required Tuition and Fees 2009-10 to 2010-11

5. General Information – Pay Package Pay Package & Health Insurance  The General Assembly did not pass a pay package for FY2011.  If there had been a Pay Package, 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 increased from 12.89% to 13.29% beginning July 1, 2010. Units will have to cover this increase.  The employer portion of the health insurance will increase by an average of 10.3% beginning January 1, 2011. A portion of the tuition increase is dedicated to cover some of the unit increase for the health insurance. Once the actual increase is known, the Budget Office will make additional budget allocations to units for “A” fund health insurance. Note that the additional funds will not cover the full amount of the increase and units will have to adjust their budgets to cover the balance.

6. General Information – State Appropriations All USC Campus base state budgets were cut by 21% to begin the new fiscal year. This is a loss of recurring state support. The budget cut has been assessed to each unit in the base budget. Units no longer receive state appropriations via the 31500 object code. State funding, fall and spring tuition, and the “tax-in” and “tax-out” object codes have been combined. Units will receive this funding via the new 31900 object code. Therefore units will not see 31500, 40140, 40150, 81150, and 86150 in their base budget. Units will receive all other revenue – including summer I and summer II tuition and unit specific fees. There is a possibility of additional mid-year cuts after the fiscal year begins.

7. FY2011 Base Cut – Appropriations Bill

8. USC System - State Appropriation Reductions

9. February 28, 2010 budget is the starting point  “Freeze” on permanent transfers was February 28  Units were allowed to make non-recurring transfers – but any changes since March 1 are not reflected in the base FY2011 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 Board of Trustees budget document  Recall that line-item budget development was suspended for FY11 in the spring Budget Development Basics

10. Budget Office Adjustments – NON-RECURRING  Examined all non-recurring budget transfer changes processed through February 2010  Removed non-recurring 3’s Within responsibility - 36400/36500 Outside responsibility - 363XX/368XX Carryforward 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

11. Budget Office Adjustments –RECURRING Recurring 3’s: Within responsibility - 37400/37500 Outside of responsibility - 373XX/378XX Rolled up to new 31900 Revenue Budget Office left revenue budgets unchanged but rolled fall and spring tuition to 31900 Recurring (Permanent) Budget Changes

12. For the FY2011 base budget development - the Budget Office moved all “tax-in” and “tax-out” to new object code 31900 Permanent Budget Changes – Impact on Tax

13. Tax Prior to setting the FY11 base: Academic Units Tax out was recalculated based on new allocation factors Service Units No additional resources are allocated at this time Tax is now rolled up in object 31900

14. Change existing resource and expense budgets within current allocation Units cannot use 31500, 31525/31526, 31534/31533 or tax codes 81150/86150 NEW – Units cannot use object code 31600 and 31900 Units should not budget any pay package increase At this time, units cannot change total budget – this budget matches the BOT approved budget. Budget changes may be entered in August. Enter unit dollar changes and comments at the object code level Drill down on Dept/Fund to see all changes processed by the Budget Office Download all data to an excel file Add object code for a new revenue or new expenditure budget Make comments for Budget Office and for unit records Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level Units Can…

15. 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  Some units will need to remove negative budget amounts in 5XXXX objects

16. Unit budgets are changed and comments are provided, if necessary, at the object code level by July 26, 2010 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 Units will check box to indicate actions are complete Budget Office will lock responsibility at completion Your Work is Complete When…

17. Web-based Budget Development Dates  Web-based budget tool available for all units beginning Monday, July 12, 2010  Budget Office will email when the system is up  All units will have until Monday, July 26 to complete budget changes  When you are finished, please email your budget analyst and check box on web-based system to indicate completion

18. FY11 Budget Execution  Units may make budget transfers via the BD system beginning in August 2010  Board approved initiatives will be allocated in August. This includes Budget Reallocation Initiative funds for Academic Units.

19. USC Columbia Campus FY 2011 BOT Approved Initiatives

21. QUESTIONS