1. FY2008 WEB-BASED BUDGET DEVELOPMENT PROCESS “A” FUNDS Developed and Presented by The Budget Office & eBusiness Solutions

2. 2 Budget Office Objectives 1)Provide convenient tool for submitting base budget changes 2)Establish the FY08 base budget amount for each unique Department/Fund & object code combination 3)Improve data control and processing: Safeguard core data Reduce consolidation errors Better use time verifying budget information - not creating spreadsheets and pasting changes New for FY2008 – additional alerts to indicate errors on accounts that are out of balance 4)Allow sufficient time to compile the Board of Trustees Budget Document 5) Enable an accurate and timely posting of FY2008 base budget to the general ledger

3. General Information – Tuition & Fees Tuition & Fees Request for changes was due March 9 Academic units – Tuition estimates  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 Amount of increase unknown at this time House Budget - HEPI cap (5%)

4. General Information – Pay Package Pay Package & Retirement  Currently, the House 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, 2007 and a possible 1% additional increase to cover the other post-employee benefits (OPEB) There are no new funds allocated to cover this increase

5. General Information Service Units Appropriations (31500) were removed and placed in 81150 Academic Units FEI funding added to appropriation (31500) All Units E funds  A review of all E funds as of March 31 was completed in early April  Units with deficit balances were notified that these must be resolved by fiscal year end  Another review will take place in late May

6. 6 February 28, 2007 budget is the starting point  “Freeze” on permanent transfers was February 28  Units can still make non-recurring transfers – but any changes since March 1 are not reflected in the base FY2008 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 Budget Development Basics

7. Budget Office Adjustments – NON-RECURRING  Examined all non-recurring budget transfer changes processed through February 2007  Removed non-recurring 3’s Within responsibility - 36400/36500 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, 50000 was offset Non-Recurring Budget Changes

8. 8 Budget Office Adjustments –RECURRING Recurring 3’s: Within responsibility - 37400/37500 Outside of responsibility - 373XX/378XX Rolled up to tax  For service units, this increased the tax in 81150  For academic units, this created a tax in 81150, or if the source is FEI funds, this increased state appropriations (31500) Revenue Budget Office left revenue budgets unchanged except for two units with budget transfers that offset revenue to 3’s. Recurring (Permanent) Budget Changes

9. For the FY2008 base budget development - the Budget Office moved all permanent transfers to the tax except FEI transfers Examples: If an academic unit received permanent FEI funds, the source was 31500 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- 37400/37500 worked the same way – the tax was shifted one department/fund to another Permanent Budget Changes – Impact on Tax

10. Tax Academic Units Tax out was recalculated based on new allocation factors No change was made to the method of calculating the tax Service Units Tax in has increased to account for removal of state appropriation – this has NOT changed the amount of resources available No additional resources are allocated at this time

11. Tax FY2007 Base 86150 $ 111,526,442 FY2007 BOT Allocations – Increased 86150 $ 8,679,193 FY2007 Total Tax $ 120,205,635 FY2008 Base 86150 $120,205,635

12. Web-based Budget Development Tool WEB BASED BUDGET

13. 13 Change existing resource and expense budgets within current allocation Units cannot use 31500, 31525/31526, 31534/31533 or tax codes 81150/86150 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 carryforward Drill down on Dept/Fund to see all changes processed by the Budget Office New for FY2008 – Download all data to an excel file Add object code for a new revenue or new expenditure budget Establish new Dept/Fund accounts and budgets *Must submit account memoranda by May 4, 2007 Make comments for Budget Office and for unit records Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level Units Can…

14. Object Code 50000 Units may need to budget and/or reallocate amounts in 50000 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

15. 15 Unit budgets are changed and comments are provided, if necessary, at the object code level by May 4, 2007 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 e-mail indicating you have completed your budget entry New this year Units will check box to indicate actions are complete Budget Office will lock responsibility at completion Your Work is Complete When…

16. Web-based Budget Development Dates  Web-based budget tool available for all units beginning Monday, April 16  Budget Office will email when the system is up  All units will have until Friday, May 4 to complete budget changes  When you are finished, please email your budget analyst and check box on web-based system to indicate completion

17. QUESTIONS