May 19, 2015

Permanent Budget & Staffing Pending Allocations

 Closing deadlines available on Blink ◦  7/1/15 – deadline for processing transfers affecting the permanent budget  7/10/15 – deadlines for transactions affecting June preliminary operating ledger  7/17/15 – deadline for VCs for adjustments to June operating ledger  7/31/15 – June final operating ledger cutoff  8/7/15 – July operating ledger cutoff

 2% across the board increase 7/5/15  Step increase 7/5/15  PPS freeze during implementation in June ◦ Review staffing now to verify that CX staff are listed with the correct FTE and salary  Auto-costing for salary increases to be processed 6/15/15 and 6/29/15 (tentative)

 Analyzing feasibility of any salary increase effective 7/1/15 for non-represented academics  As preparation, please ensure that all faculty merits and promotions effective 7/1/15 are entered in PPS by 6/30/15

 No new information regarding a program for salary increases for non-represented staff  SX will receive a step increase effective 7/5/15

 Complete PPS updates by 6/30/15 if possible  Because of compressed timelines for salary program implementation, may not be much time for departments to review auto-costing  May need to make funding corrections in 15/16 for anything missed at closing  Contact Denise Christensen for provision changes and questions ◦ x20443

 GSGEI ◦ Allocation for spring quarter to be transferred on May ledger  Non-Resident Masters Incentive ◦ 14/15 is the last year of this program ◦ Funds to be transferred to Dean’s Offices in May

The following allocations will be made after the June prelim ledger deadline (July 10), based on actual costs:  Benefits and general liability for June  Faculty startup and retention ◦ Requests for department indexes will be sent in early June  Child care reimbursement for GSRs

Campus Budget Process Funding Sources Allocation Updates Recharge Activities

 Campus Budget Process ◦ Goal is to align operating budgets with actual/projected annual expense ◦ Reduced use of formulaic distribution of state funds and tuition among VC areas ◦ Increase in targeted allocations, with increased accountability ◦ In 15/16 budget planning, CFO’s focus was a detailed review of administrative units

 Campus Budget Process ◦ For 16/17 budget planning, the focus will be a detailed review of academic units  Units can anticipate information requests from dean’s offices and EVC’s office regarding regular operating expense and expense for targeted allocations  Units may also expect requests for explanations of carry forward balances, including identification of balances designated for individual faculty members

 Temporary FTE A  TA FTE – 19900A  Admin Stipends & Ninths – 19900A  Equipment Allocation – 19900A  Equipment Matching – 19933A  Faculty Startup & Retention – ◦ 19933A (AH/SS) ◦ combination of 19933A/05397A/19942A (Bio/JSOE/PS)  Undergraduate Seminars – 19900A  Graduate Support (incl. block grant) – 19942A  Summer Admin Support – 20095A

 To date, 2% overall decline in summer 2015 enrollment as compared to summer 2014  If summer enrollment in your department has decreased from last year, anticipate lower summer TA allocation  Allocations will be calculated and distributed in the week of June 22  Summer instructors and TAs should be paid on fund 20290A (summer session fee)

 Starting will Fall 2015, the GSGEI allocation will be equal to the NRST revenue generated by the program’s 1st, 2nd, and 3rd year PhD students, adjusted by a cost-sharing factor  15/16 allocations for a department will likely be reduced if funds from 13/14 and 14/15 have not been spent by 6/30/15

 Low-volume, low-revenue activities to be reviewed by campus to determine if services still needed  Recharge activities that have not had their rates reviewed in the last two years will be asked to submit rate calculations and statements of operations that support continuing the current rates ◦ First priority will be services that are high-volume, with recharges to federal funds

 Goals are to ◦ Eliminate workload ◦ Simplify financial management ◦ Improve transparency on campus expenses ◦ Increase operating flexibility to help innovate, invest, and diversify revenues  Campus-wide work group established at the end of March

 Why would we consider this? ◦ Revenue sources are more variable/unpredictable than anticipated ◦ Variability creates challenges in providing the same fund sources to units from year to year ◦ As additional revenue streams are developed, additional funds will be added to the mix ◦ Some funds are more restricted than others, adding to the challenge ◦ Creating valid reports of operating activity at the campus-wide level is challenging

 What accounting changes could we make so that units could have fewer and more flexible “core” funds? ◦ Consolidate fund numbers ◦ Change restrictions on funds ◦ Redistribute existing budgets  Are the benefits greater than the costs? ◦ Huge workload involved for this kind of change

 Started with a list of 130 “core” funds ◦ State funds ◦ Student tuition ◦ Indirect cost recovery ◦ Other overhead recovery  Admin share of differential income  Admin overhead assessment (ASSA)  Gift/endowment fee/recovery ◦ STIP ◦ Patent Income (campus share)

 Some core funds already being phased out  Some state funds are restricted for specific purposes  Some core funds in use in only one VC area or one department/unit  Main focus is on about 20 funds ◦ 12 commonly used in Academic Affairs  Most units have 2-3 regular operating funds

 Determining/discussing reporting requirements (UCOP, state, others)  Developing options to consider ◦ Single fund or partial consolidation of funds  Analyzing impacts of these options on operational units

 We need your input!  What are the benefits?  What are the costs? (both one-time and continuing)