Zero Based Budgeting and the Process Surrounding It

Zero Based Budgeting Set budgeted expenses around the strategic plan set by the college Budget plans will be based on a twelve month fiscal year Budgets will be built from the bottom up with the identification of “needs” versus “wants” Will require departments and Budget Managers to be more proactive around planning expenses on an annual basis Natural account classifications will be utilized

Zero Based Budgeting An educational process will be conducted campus wide during the 2014-2015 fiscal year, with the goal of having the 2015-2016 fiscal year budget developed based on this methodology Small group meetings will be staged throughout the course of the year to ensure that all issues and nuances of departments and units are understood in the context of how we will develop the budget

Proposed Timeline for Budget Cycle Dates Plan February–May: IEBC discussions related to strategic use of institutional funds March-August: Information packet provided on budget website and IEBC MyCommunity page, as well as meetings with budget managers to assist in planning process September-October: Develop parameters for proposal to BOT at October meeting October–November: Continue to develop budget and prepare unit data for input to Budget Office for compilation of institutional requests/expectations at Natural Account Classification level December: All submissions due to Budget Office by December 15, 2014-NO EXCEPTIONS January: Compilation of expense and revenue budgets. Institutional budget provided to IEBC for consideration February: Present proposed budget, summarized at Natural Account Classification level for the entire institution, to BOT Approved budget funding allocated across lines (i.e. into correct departments, subcodes and projects). Input process closes on May 10th -NO EXCEPTIONS June 1st: Fiscal Year Budgets become live for the 12 month period from June 1st through May 31st

A Time for Planning Step 1: Decide who needs to be involved in the planning process and at what level Ex. VP, Chairs, Supervisors, Input Personnel Step 2: Establish a timeline for your area and work back Note: Deadline for final budgets are due from each Division (or VP) to the budget office by December 15, 2014-NO EXCEPTIONS

A Time for Planning Step 3: Begin the planning by detailing what you “need” to accomplish Suggestions: Hold meetings with unit personnel and budget office personnel Do not look at current budgets (i.e. start from scratch) Be consistent Disregard what you have had and focus on what you will need

A Time for Planning Resources to help in the planning process: Budget Intake Template and accompanying Budget intake Template Narrative which provides definitions of the natural account classifications Note the various tabs across the bottom of intake template Subcode Definitions and Examples Spreadsheet 3 year (two previous fiscal years plus the current fiscal year) report of actuals found by clicking on the link (3 Year Report) then selecting the Budget and Actuals Year to Year Comparison Report Detail about running the report can be found on the budget website at Instructions Related to Budget and Actuals Report in Argus

Intake Template Spreadsheet Provided at the natural account classification level Ex. All travel subcodes roll up to one natural classification level called Travel Each tab provides helpful information on helping departments to think about their needs Will also provide the reviewer of the information with the necessary details in order to make strategic decisions Two supporting documents: Intake Template Narrative Subcode Definitions and Example Spreadsheet Will guide the user on what subcodes make up the natural account level so that budgets are entered in to the appropriate classification

Intake Template Spreadsheet Ultimately, the summary sheet from the templates will be consolidated and presented to the BOT This process is currently in the development phase