1. Budget Memorandum

2. Budget Preparation for FY16
Gather facts. Include all Anticipated Income Categories
Tax Revenues, Carryover, Interest and other sources of income
Involve all Agents and District Board in process and decisions
Involve CEC to program needs and budget recommendations
Be aware of UK’s share in cost of the Cooperative Extension Program
Refer to “Guidelines for County Program Cost Share for 2015 – 2016”
Base Program Costs
Base Agent Salary Contribution
County Contributions for Benefits

3. Support Staff Salaries
Anticipated salary adjustments
Up to 2% (should be based on performance)
Counties will complete a Salary Adjustment Form for each county paid employee
Adjustment should be included in budget plans
All adjustments to salary must be UK approved
If approved, adjustments will be effective July 1, 2015
Recommendation for Counties
If possible, budget a minimum of $10 per hour for starting salary
Starting salary for NEP is now $12 per hour
Special adjustments above the 2% require a letter of support

4. Subsistence and Travel
Subsistence Rates
CES follows UK Guidelines
Rates in KY differ in Urban Areas (3 rates in KY)
Out-of State Guidelines: Refer to IRS Table 4
Travel
Mileage reimbursement rate effective 1/1/15 is 57.5 mile
Be aware of all UK Travel Regulations
Reimbursements of all travel must adhere to UK Guidelines
Reference: University of KY Office of the Treasurer
Link:

5. Professional Improvement Funds
Maximum Limit per Agent - $3000
Only budget PI Funds when all other obligations are met
Acceptable Use of PI Funds:
Travel and Subsistence
Registration fees for approved Professional Meetings and activities
Unacceptable Use of PI Funds:
Credit Course Tuition
Agent dues for outside professional, civic or association dues
Additional PI Funds Allocation:
$1,000 for participation in ESP professional meetings (St./Nat.)

6. Staff Support Funds/Marketing
Funds for Staff Trainings and Development
Examples of Opportunities: Chi Epsilon Sigma, District Secretary Training, CAFE Staff Appreciation Day and other educational work related trainings
Suggested Guide - $1500 per year, all support staff equal amount
Marketing Extension Items
Resource: CAFE Web Store
CEC Marketing Committee should develop a plan/budget
District Boards may identify appropriate amounts for a line item
Use approved vendors

7. Postage Allocation Postage costs continually increase
Postage allocation from USDA does not
Counties should review allocation of dollars to penalty mail & their spending history to help determine budget needs
Charges “over” the county postage allotment are charged to counties at the end of the year
Postage spending is reflected in the county budget reconciliation statement
Counties should verify postage through the mail management system as a basis for future allotment allocations

8. Program Enhancement/Support Funds
Equal appropriations for each agent
Program Support Funds may be appropriated for program assistants
Agents are to develop budgets for use of Program Support Funds
Present to CEC during formation of the county budget
Submit to District Director with submission of overall co. budget
Itemized Expenditure of funds
The financial statement should include receipts
Submit to EDB or CEC (funding body) and District Director before Aug 15, annually
District Board must publish the location where the Budget, Financial Statement and most recent Audit/Attestation Reports may be examined
Due September 1
Location must be the Courthouse and not Extension Office

9. Program Enhancement/Support Funds
Proper Use
Expand programs (demo supplies or equipment, support material)
Leader Training for an individual leader (expected to repay as a program volunteer or refund expenses received
Improper Use:
Funding Program Councils
Expenses benefiting Individuals (i.e. Camp Scholarships)
Salaries, payments, bonuses or gifts to individuals (includes employees, volunteers or clients)
Requirement:
Agents must annually submit a budget for program support funds
Agents must file an expense record with the District Board

10. Audits, Financial Statements and Attestation Engagements
Required by Law (KRS 65A.030)
Become familiar with guidelines on expenses of the EDB Audit
Link:
Additional Expense: Registration with DLG ($25, $250 and $500)
Following the Audit or Attestation:
Send report to DLG & District Director (use DLG form/format)
Results of the Audit and Attestation must be:
Reviewed with EDB (address recommendations, put into practice)
Actions documented in Board minutes and sent to District Director
Presented to the County Extension Council
Recommended: Use outside firm for audit if handling bookkeeping and have EDB and CEC funds audited when there is a change in treasurers

11. Budget Forms - Deadlines
February 15
DB Member and Officer Reporting Form (DLG Reporting Site)
Offset Voucher (Office and Procedure Manual)
1 Copy to Tina Ward; 1 Copy to District Director
April 1
Budget Plan Rough Draft (Send to District Director)
April 15
Budget (1 to County Fiscal Court and 1 Copy to District Director)
May 1 – July 15
Portal Opens/Closes to enter Budget on line for SPGE- DLG
Portal Opens/Closes to pay Registration Fee

12. Continued Budget Forms - Deadlines
FINALS DUE MAY 1
Memorandum of Agreement with UK
3 originals to DD (1 for DD, 1 for Business Office, 1 return to Co.)
Electronic copy to DD Support Staff
Schedule of Disbursements
Salary Adj. Form/Letter/Tax Sheet
1 original to District Director
Special District Uniform Financial Statement (previous FY)
Department of Local Government Portal

13. Continued Budget Forms Deadlines
June 30
Budget Amendments – Online SPGE (throughout year)
July/August
Tax Rates (send to DD after Fiscal Court approves)
September 1
Annual Financial Statement – District Board must publish the location where budget, financial statement, and most recent audit/attestation reports may be examined
Must be in Court House, not Extension Office
September 30
End of year Actual expenses – Online SPGE

14. Continued Budget Forms Deadlines
Audits: Deadline as required by DLG and beginning 2016
Send a copy to DD after completion
Post to DLG as a PDF upload with frequency of audit/attestation based on level of annual revenues and expenditures
All Revisions during the year to Memorandum of Agreements should be dated and clearly marked as revision
3 originals should be sent to District Director’s office (1 for DD,1 for business office, and 1 to return to County after signatures are complete)
BEST WISHES FOR A SUCCESSFUL YEAR OF
FISCAL REPORTING