Budget Updates Budget Planning and Development FAR Meeting July 19, 2017 Tammy Anthony, Senior Director Office of Financial Affairs (http://www.utsa.edu/financialaffairs/)

Agenda Faculty Fringe Summer Reallocation Salary Encumbrances Work-study Correction – Pay Period 5/15/2017 Lapse Policy Updates FY 2018 Operating Budget Budget Planning and Development Office of Financial Affairs

Faculty Fringe Summer Reallocation 9 Month Faculty Fringe Double Deduct “Reallocation” for Summer Months Moves employer share of deductions that was double deducted in March, April and May for faculty to the same funding sources that the faculty is paid from for June, July and August “if” they are paid in the summer through a summer faculty contract. The journal entry will be posted with a 8/31/2017 date within the first week of September. Budget Planning and Development Office of Financial Affairs

Salary Encumbrances Monday July 10 salary encumbrances were reestablished for July and August in PeopleSoft. This should address concerns with inaccurate values It will be important for you to verify that the encumbrances are accurate Please notify Budget.HCM@utsa.edu if you find any discrepancies Encumbrance updates due to funding changes and HR actions after July 10 will update at the end of July. At year-end, residual salary encumbrances will be dis-encumbered in FY 2017. Target is just before August 31 New Year FY 2018 Salary Base Line Encumbrances will take place prior to the 3rd week in September Budget Planning and Development Office of Financial Affairs

Work-Study Correction Pay Period 5/15/2017 expensed to Departmental Default Cost Centers in error. Correction for those students with remaining work- study allocations will be posted in July with a journal entry.

Lapse Policy Updates FY 2017 Ending Balance Reviews Reports should be used for negative balance reviews Each VP Report will be grouped by Fund Reports will not reflect encumbrances Lapse Guidelines – Educational & General Funds Fund 2100 will lapse 100% Exclusions Lab Fees (Identified by cost center) Cost-Share Cost Centers tied to a Project ID Certain Financial Aid/Scholarships (Function 997) Fund 2120 - State Pass Through will not lapse Fund 2150 - E&G Local Funds will not lapse (State sponsored Financial Aid) Fund 2110 and 2115 Special Item will lapse to the State Budget Planning and Development Office of Financial Affairs

Lapse Policy Updates Lapse Guidelines – Designated Funds (3XXX) Fund 3100 – To be reviewed Exclusions Mandatory Fees (Identified by cost center) Incidental Fee (Identified by cost center) F&A Cost Centers (Identified by cost center) Cost Share tied to a grant/contract project id Certain Financial Aid (Function 997) Fund 3105 will lapse 50% to central reserves Fund 3115 - Student Services Fees – To be reviewed Fund 3200 - Service Centers will not lapse Budget Planning and Development Office of Financial Affairs

Lapse Policy Updates Lapse Guidelines – All Other Funds The following funds will not lapse Auxiliary Enterprise – Fund Group 4100 – 4700 Grants and Contracts – Fund Group 5100 – 5400 Gift/Restricted Funds – Fund Group 5500 and 5600 Plant Funds – Fund Group 71XX There will be a process defined after the lapse where a formal request can be made through the VPBA for a one- time allocation to be approved by the President for FY 2018. Budget Planning and Development Office of Financial Affairs

FY 2018 Operating Budget The FY 2018 Operating Budget was submitted to UT System July 17, 2017 Our budget along with all other UT Campuses will be presented to the Board of Regents August 23-24, 2017 for consideration and approval Budget Loads into PeopleSoft will be completed prior to September 1, 2017 Budget Planning and Development Office of Financial Affairs

FY 2018 Operating Budget Change The University of Texas San Antonio 2017-2018 Budget ALL FUNDS OPERATING BUDGET SUMMARY Fund Group   2016-2017 Recommended % of Budget 2017-2018 Recommended Increase/ <Decrease> %Inc/ -%Dec Education and General Funds $261,096,488 48.96% 259,426,709 47.54% $ (1,669,779) -0.64% Designated Funds $139,179,413 26.10% 144,857,361 26.54% $ 5,677,948 4.08% Auxiliary Enterprise Funds $72,642,304 13.62% 74,423,940 13.64% $ 1,781,636 2.45% Restricted Current Funds - Contracts and Grants 9,020,400 16.69% 98,400,000 18.03% $ 9,379,600 10.54% Restricted Current Funds - Gifts $15,268,663 2.86% 15,582,000 $ 313,337 2.05% Unexpended Plant Funds $5,500,000 1.03% 4,577,000 0.84% $ (923,000) -16.78% Subtotal $582,707,268 109.26% $597,267,010 109.44% $ 14,559,742 2.50% Adjustments: Tuition Discounting (68,291,103) -12.81% (70,953,796) -13.00% (2,662,693) 3.90% Capital Outlay (7,743,018) -1.45% (6,100,000) -1.12% 1,643,018 -21.22% Debt Principal Transfers (21,948,350) -4.12% (22,768,000) -4.17% (819,650) 3.73% Depreciation 48,591,000 9.11% 48,294,710 8.85% (296,290) -0.61% TOTAL $533,315,797 100.00% $545,739,924 $12,424,127 2.33% Budget Planning and Development Office of Financial Affairs

Highlights and Challenges FY 2018 Operating Budget Highlights and Challenges UTSA Overall Budget Change from Prior Year Total Budget Increase $12.4M Includes new on-line Cyber Security Degree program – Expected Enrollment 157 Students Includes Internal Audit Function to UTSA General Revenue statewide down $1.3B (1.2% decrease) over 2016-17 – UTSA is relatively flat with .2% increase or $300K in General Revenue Appropriations Non-Formula Support Reductions (Formerly known as Special Items) Budget Planning and Development Office of Financial Affairs

Highlights and Challenges (cont’d) FY 2018 Operating Budget Highlights and Challenges (cont’d) Higher Education Group Insurance Contribution Rate Change Tuition and Fee Revenue State Financial Aid Program Reductions Other Revenue Budget Changes Other Expense Budget Additions Budget Planning and Development Office of Financial Affairs

General Revenue Change Budget Planning and Development Office of Financial Affairs

Non-Formula Support Reductions Reductions ranging from 20.2% to 34.2% on all of our Non- Formula Support line items which includes the following: Texas PreEngineering Programs Life Sciences Institute (SALSI) Institute of Texan Cultures Small Business Development Texas State Data Center Research Hold Harmless Budget Planning and Development Office of Financial Affairs

Higher Education Group Insurance Group Insurance contribution rate decreased from 86.83% to 76.27%. This resulted in a decrease in state appropriation funding used to cover E&G funded employees group insurance. The university will cover the cost $1.5M from tuition revenue. Budget Planning and Development Office of Financial Affairs

Tuition and Fee Revenue Enrollment is expected to be flat at approximately 29,000 Undergraduate resident enrollment is increasing slightly Non-Resident enrollment continues to drop (3 year trend) Revenue impact due to decline in non-resident enrollment $7.8M Total Academic Cost rate increases approved for FY 2018 are now being used to offset the loss of revenue due to non- resident enrollment declines. Budget Planning and Development Office of Financial Affairs

Tuition and Fee Revenue Discounts and Allowances are projected to increase $2.7M Loss of Revenue from Hazelwood exemption is projected to increase $2.0M Budget Planning and Development Office of Financial Affairs

State Financial Aid Reductions Texas Grant Program - $1.6M decrease Top 10% Scholarships - $253K decrease State Work-study - $9K Increase Hazelwood Permanent Fund - $180K decrease Budget Planning and Development Office of Financial Affairs

Other Revenue Budget Changes Sponsored Program Revenue (grants and contracts) is budgeted to increase $10.2M Sponsored Program Revenue (financial aid) is budgeted to decrease $2.0M Auxiliary Revenue is budgeted at an increase of $1M predominately due to Athletic revenue and meal plans/food service. Budget Planning and Development Office of Financial Affairs

Other Expense Budget Additions Gold Star Initiative (including benefits) - $1.2M Merit Program (including benefits) - $3.2M Recruitment of top quality Ph.D. students - $1.0M Financial Aid Set-Asides - $1.3M Auxiliary (predominately Athletics) - $1.6M Other (faculty promotion & tenure, benefits, utilities) - $766,000 Budget Planning and Development Office of Financial Affairs

Office of Financial Affairs QUESTIONS Office of Financial Affairs Budget Planning and Development

Your partner for successful solutions Thank you! Your partner for successful solutions Office of Financial Affairs