FY2007 WEB-BASED BUDGET DEVELOPMENT PROCESS “A” FUNDS Developed and Presented by The Budget Office & eBusiness Solutions

2 Budget Office Objectives 1)Provide convenient tool for submitting base budget changes 2)Eliminate use of Excel workbooks 3)Establish the FY07 base budget amount for each unique Department/Fund & object code combination 4)Improve data control and processing: Safeguard core data Reduce consolidation errors Better use time verifying budget information - not creating spreadsheets and pasting changes 5)Allow sufficient time to compile the Board of Trustees Budget Document 6) Enable an accurate and timely posting of FY2007 base budget to the general ledger

General Information – Tuition & Fees Tuition & Fees Request for changes was due March 6 Academic units – Tuition estimates  Tool to determine the average E & G tuition received per credit hour – you have to know how many credit hours your unit will generate  Three years of tuition data available by semester in DataWarehouse  Unless there is a known decrease in student enrollment, units can plan tuition budget that is AT LEAST the amount it is this year  If tuition does not look reasonable we will return it or increase it in consultation with the Provost/VPRHS offices Failure to budget tuition at the expected level results in a significant variance of budget to actual, increased carryforward, and causes the recalculation of the tax to be inaccurate University tuition increase HEPI cap, HEPI + $250/semester

General Information – Pay Package Pay Package & Retirement  Currently, the House Ways and Means Budget includes a 3% pay increase-across the board for all classified employees and ‘without uniformity’ for unclassified  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 goes up.5% beginning July 1, 2006 and another.5% beginning July 1, 2007 There are no new funds allocated to cover this increase

General Information Service Units Review unit description by March 31, to follow by March 21 User Fee changes were due March 1  Requests for changes to the administration and to Administrative Council All Units One-time graduate assistant funds  The third and final installment of the graduate supplement funds was allocated in FY2006 Initiatives  The request for initiatives went out on February 1 and responses are due back to the Budget Office by April 14  Initiatives must be approved and ranked by the appropriate Vice President before being submitted to the Budget Office E funds  A review of all E funds was completed in January and early February  Units with deficit balances were notified that these must be resolved by fiscal year end  Another review will take place in late May

6 January 31, 2006 budget is the starting point  “Freeze” on permanent transfers was January 20  Units can still make non-recurring transfers – but any changes since February 1 are not reflected in the base FY2007 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 web-based system  Possible that this will be pushed later next year Budget Development Basics

Budget Office Adjustments – NON-RECURRING  Examined all non-recurring budget transfer changes processed through January 2006  Removed non-recurring 3’s Within responsibility /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, was offset Non-Recurring Budget Changes

8 Budget Office Adjustments –RECURRING Recurring 3’s: Within responsibility /37500 Outside of responsibility - 373XX/378XX Rolled up to tax For service units, this increased the tax in For academic units, this created a tax in This is different from last year –  For the base budget development in FY2006 we rolled the taxes together and for academic units lowered their “tax out” by the amount of the permanent transfers  Also moved some state appropriations dollars around last year – attempt to avoid this year Recurring (Permanent) Budget Changes

For the FY2007 base budget development - the Budget Office moved all permanent transfers to the tax  Object code – “tax in” for the academic initiatives – was not used to transfers funds to the units  Preference was to have these transfers come in via the 3’s to be able to see the source Examples: If an academic unit received permanent FEI funds, the source was If an academic or service unit received permanent tenure and promotion funds, the source was If an academic or service unit received a permanent transfer from any unit, the source was 373XX If an academic or service unit sent a permanent transfer to any unit, the transfer was 378XX Permanent transfers inside a responsibility /37500 worked the same way – the tax was shifted one department/fund to another Permanent Budget Changes – Impact on Tax

Tax “Rolled-up” the tax codes  Tax in – and are combined  Tax out and are combined Academic Units Tax out was recalculated based on new allocation factors Base tax workbooks will go out later this week

Tax FY2006 Base FY2006 BOT Allocations – Increased FY2006 BOT Academic Allocations – FY2006 Total Tax FY2007 Base $ 92,791,599 $ 13,896,498 $ 4,838,345 $111,526,442

Web-based Budget Development Tool WEB BASED BUDGET

13 Change existing resource and expense budgets within current allocation Units cannot use or tax codes 81150/ 81160/ 86150/86160 Units should not budget any pay package increase Units may budget retirement increase of.5% Enter unit dollar changes and comments at the object code level Budget additional resources Excluding the University tuition increase and carry forward Drill down on Dept/Fund to see all changes processed by the Budget Office Add object code for a new revenue or new expenditure budget Establish new Dept/Fund accounts and budgets *Must submit account memoranda by May 5, 2006 Make comments for Budget Office Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level Units Can…

Object Code Units may need to budget and/or reallocate amounts in 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 Example – excess carryforward

15 Unit budgets are changed and comments are provided, if necessary, at the object code level by May 5, 2006 Account memoranda are submitted for newly established Department/Fund accounts 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 indicating you have completed your budget entry Your Work is Complete When…

Web-based Budget Development Dates  Web-based budget tool available for all units beginning Monday, March 20  Budget Office will when the system is up  All units will have until Friday, May 5 to complete  When you are finished, please your budget analyst

Template will go out Thursday, April 6, 2006 Due back in Budget Office by Friday, April 14, 2006

Carryforward Workshop Wednesday, April 5, 2006 UTS Auditorium First Session – 9: :00 Second Session – 10: :30 Register by ing Ashley Grant All are welcome

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