1. Budget Planning & Development Presented by: Elizabeth Bay, Senior Budget Analyst Tammy Anthony, Assistant Budget Director Mary Simon, Senior Budget Director August 26, 2015

2. AGENDA   Lapse Guidelines Recap   Commitment Control Update - -FY 2015 Ending Balance Review - -FY 2016 Beginning of the Year Process/ Balance Forwards   Commitment Accounting Update - -Salary Encumbrance - -Department Budget Table (DBT) - -Critical Clean Up   Q&A   Lapse Guidelines Recap   Commitment Control Update - -FY 2015 Ending Balance Review - -FY 2016 Beginning of the Year Process/ Balance Forwards   Commitment Accounting Update - -Salary Encumbrance - -Department Budget Table (DBT) - -Critical Clean Up   Q&A

3. Lapse Guidelines Recap

4. Lapse Guidelines – Educational & General Funds   Disposition of E & G balances are based on each Vice President’s direction for their areas   Budget Office will provide year end balance reports to Primary Financial Area Reps for processing budget transfers, as appropriate.   E&G remaining balances should be zero   Any negative balances need to be addressed and cleared   Certain accounts are not subject to the lapse, including VP reserves, GIT & lab fees   Special Items & Research Development Funding must be fully expended in FY 2015 as this is the 2 nd year of the biennium.   Disposition of E & G balances are based on each Vice President’s direction for their areas   Budget Office will provide year end balance reports to Primary Financial Area Reps for processing budget transfers, as appropriate.   E&G remaining balances should be zero   Any negative balances need to be addressed and cleared   Certain accounts are not subject to the lapse, including VP reserves, GIT & lab fees   Special Items & Research Development Funding must be fully expended in FY 2015 as this is the 2 nd year of the biennium.

5. Lapse Guidelines - Designated Funds Disposition of centrally funded Designated Tuition account balances are based on each VP specific lapsing policy:   President’s Office – department balances at year end will roll forward   Academic Affairs – department balances in E&G cost centers will lapse to VPAA reserve and designated balances at year end will roll forward. The Provost will lapse amounts that exceed the 30% cap of the designated tuition operating budgets.   Business Affairs – department balances at year end will roll forward   Community Services – department balances at year end will roll forward   External Relations – department balances will lapse to VP External Relations reserve   Research – departmental balances will lapse to VP Research reserve   Student Affairs – department balances will lapse to VP Student Affairs reserve Certain Designated Cost Centers are not subject to lapse   Most designated accounts sourced from fees and other revenue sources   Official Occasions sourced from interest on time deposits   Facilities & Administration (F & A) cost centers Disposition of centrally funded Designated Tuition account balances are based on each VP specific lapsing policy:   President’s Office – department balances at year end will roll forward   Academic Affairs – department balances in E&G cost centers will lapse to VPAA reserve and designated balances at year end will roll forward. The Provost will lapse amounts that exceed the 30% cap of the designated tuition operating budgets.   Business Affairs – department balances at year end will roll forward   Community Services – department balances at year end will roll forward   External Relations – department balances will lapse to VP External Relations reserve   Research – departmental balances will lapse to VP Research reserve   Student Affairs – department balances will lapse to VP Student Affairs reserve Certain Designated Cost Centers are not subject to lapse   Most designated accounts sourced from fees and other revenue sources   Official Occasions sourced from interest on time deposits   Facilities & Administration (F & A) cost centers

6.   Remaining Balance – Service Centers   Not subject to lapse (carry forward 100%)   Any surplus/deficit exceeding 10% requires special exception and approval of AVP- Financial Affairs   Monitored by Controller area   Subject to Service Center Policy for compliance with OMB Circular A-21.For questions please contact: - Sheri Hardison x6774   Year-end balances in the following funds are not subject to lapse (carry forward 100%):   Grant and Contracts   Auxiliary Enterprise   Gift/Restricted Funds   Plant Funds   Remaining Balance – Service Centers   Not subject to lapse (carry forward 100%)   Any surplus/deficit exceeding 10% requires special exception and approval of AVP- Financial Affairs   Monitored by Controller area   Subject to Service Center Policy for compliance with OMB Circular A-21.For questions please contact: - Sheri Hardison x6774   Year-end balances in the following funds are not subject to lapse (carry forward 100%):   Grant and Contracts   Auxiliary Enterprise   Gift/Restricted Funds   Plant Funds Lapse Guidelines – All Other Funds

7. Commitment Control Update

8. FY 2015 Ending Balance Review  Budget Office will provide Budget Balance Available Reports to Primary Financial Area Reps for FY 2015 review. Reports include ending balances excluding encumbrances and pre-encumbrances. Week of August 24 – 28 th  YTD July 2015 and MTD July 2015 (estimate one month expense) Friday, September 4 th  YTD August 2015 based on Accounting Year End Close Schedule  Primary FAR members will coordinate budget transfers to clear negative balances and zero out E&G balances, as deemed appropriate. All transfers must be completed no later than Sept. 9 th.  Special Items and RDF should be fully expended as this is the end of the biennium 2014-2015. Submission for USAS for reimbursement is August 26 th.

9.   August 31 st - Budget Office loads Original Budget 2016   Hyperion PSPB journals will be posted to Commitment Control   OPE Original Budgets are recorded to various budgetary accounts   Net Sales and Services were evaluated and majority of cost centers showing a 3 year revenue trend were provided permanent budgets   Budget Transfer In/Out are recorded to budgetary account A7000 and should net to zero   OPR Original Budgets are recorded as TOTRV (budgeted revenue) and RTRFS (budgeted transfers)   September 1 st - Budget Office completes maintenance of Associated Budgets in FY 2016   Associated Budgets will automatically allow spending authority up to the amount of revenue recognized.   This cannot be applied to cost centers with original budgets; otherwise, it will double up the authorized spending authority.   Associated Revenue Budgets will be based on an analysis of cost centers currently associated.   Primarily gift cost centers and any cost center with only balance forwards (i.e. no original budgets)   August 31 st - Budget Office loads Original Budget 2016   Hyperion PSPB journals will be posted to Commitment Control   OPE Original Budgets are recorded to various budgetary accounts   Net Sales and Services were evaluated and majority of cost centers showing a 3 year revenue trend were provided permanent budgets   Budget Transfer In/Out are recorded to budgetary account A7000 and should net to zero   OPR Original Budgets are recorded as TOTRV (budgeted revenue) and RTRFS (budgeted transfers)   September 1 st - Budget Office completes maintenance of Associated Budgets in FY 2016   Associated Budgets will automatically allow spending authority up to the amount of revenue recognized.   This cannot be applied to cost centers with original budgets; otherwise, it will double up the authorized spending authority.   Associated Revenue Budgets will be based on an analysis of cost centers currently associated.   Primarily gift cost centers and any cost center with only balance forwards (i.e. no original budgets) FY 2016 Beginning of Year Process

10.   By Sept 10 th, E&G Benefits will be fully funded centrally for FY 2015   Budget office will complete final budget transfers of Centrally funded E&G and Designated cost centers by September 11 th to meet year end deadlines.   Following Accounting Office Close on Sept 11 th, Budget Office will true up OPE Spending Authority based on the OPR 2015 Revenue. The spending authority adjustments will be reflected in the OPE Budgetary account A9000.   On September 18 th Budget controls are turned on for transaction processing. Overrides will be processed on an exception basis until Balance Forwards are recorded by early October.   By Sept 10 th, E&G Benefits will be fully funded centrally for FY 2015   Budget office will complete final budget transfers of Centrally funded E&G and Designated cost centers by September 11 th to meet year end deadlines.   Following Accounting Office Close on Sept 11 th, Budget Office will true up OPE Spending Authority based on the OPR 2015 Revenue. The spending authority adjustments will be reflected in the OPE Budgetary account A9000.   On September 18 th Budget controls are turned on for transaction processing. Overrides will be processed on an exception basis until Balance Forwards are recorded by early October. FY 2016 Beginning of Year Process - Balance Forwards

11.   After Accounting Office completes the final FY 2015 close (expected on or before October 9 th ), the Budget Office will load Balance Forwards for all fund groups, except Grants and Capital Projects.   2015 Remaining Balance calculation will be computed similar to last year. Budget will exclude Encumbrances and Pre-Encumbrances in the computation of Roll Forward balances by cost center. Remaining Balance = OPE Spending Authority - Encumbrances (PO’s & Travel) - Pre-Encumbrances   Budget Office will load Balance Forward journals as an adjustment to budgetary account A4000 with an effective date of 9/1.   After Accounting Office completes the final FY 2015 close (expected on or before October 9 th ), the Budget Office will load Balance Forwards for all fund groups, except Grants and Capital Projects.   2015 Remaining Balance calculation will be computed similar to last year. Budget will exclude Encumbrances and Pre-Encumbrances in the computation of Roll Forward balances by cost center. Remaining Balance = OPE Spending Authority - Encumbrances (PO’s & Travel) - Pre-Encumbrances   Budget Office will load Balance Forward journals as an adjustment to budgetary account A4000 with an effective date of 9/1. FY 2016 Beginning of Year Process - Balance Forwards

12. Commitment Accounting Update

13. Salary Encumbrances  FY 2015 Residual Salary Encumbrance will be dis-encumbered before 8/31/2015  FY 2016 Salary Baseline Encumbrance Date will take place prior to 3 rd week in September

14. Department Budget Table (DBT)  Deadline has passed for FY 2015 Retro Funding Change; these take place with the payroll processing  Exceptions will be made for Grants related Ad-Hoc Retro processing; yet, must be received by 8/28/2015  New FY 2016 DBT Table Available before 8/31/2015  September 1 – 15 Semi Monthly DBT’s due 9/15/2015  September Monthly DBT’s due 9/21/2015

15. Critical Clean Up Projects  FY 2015 Deduction/Taxes Override Cleanup  PS program code prevented a portion of the DBT’s not to distribute deductions/taxes to the same funding source(s) as earnings since PS Go Live. This clean up is for FY 2015 only.  SIS is in the process of developing the correcting journal entry with an expected posting date of 8/31/2015  9 Month Faculty Fringe Double Deduct “Reallocation” for Summer Months  Moves employer share of deductions that was double deducted in March, April and May to the same funding sources the faculty is paid from for June, July and August “if” they are under contract for these months  Will provide the journal entry to Grants/RSC prior to posting for their review. Target posting date is 8/31/2015

16. Year-End Maintenance  Multiple “Active” Combo Codes – Year-End Maintenance  Due to speedtype changes which generate another combo code  Target Date: Prior to FY 2016 DBT Table Roll  Action Plan: For FY 2016 SIS has suggested an ‘Effective Dated” approach to avoid multiple active combo codes throughout a fiscal year  Multiple “Active” DBT’s – Year – End Maintenance  Due to the position changing “owning” departments  Target Date: Immediately after FY 2016 DBT Table Roll

17. “Change” Fringe Benefit Encumbrance Planned Go Live TBD ********** Questions? Thank you! “Change” Fringe Benefit Encumbrance Planned Go Live TBD ********** Questions? Thank you!