1. 1  Spring Budget Process (SBP) Timeline  Benefits  Suggestions  Budgeting in Finance Budget Development –Revenue –Labor –Non Labor –Transfers  Chart Change Impact  Estimated Endowment Income Calculation  Appearance of budgets in GLez  Next Steps Restricted Budgeting

2. 2 SBP Timeline

3. 3  Restricted funding becoming a larger portion of overall University resources –Education & General: 43% –Auxiliary: 16% –Restricted: 39% –Other: 2%  Increased transparency  Better planning  Better reporting  A step towards All Resource Planning (ARP) –ARP at Notre Dame is an approach to multi-year financial planning and management. The University plans to identify and implement (or internally develop) a robust planning and budgeting system that enables budget managers to view all of their available funding sources, and understand the restrictions placed on each. They would also see the costs of their highest priority uses over multiple years, past and future. The system would allow them to plan the allocation of their resources to support their programmatic responsibilities directly and transparently. Benefits

4. 4  Unlike Unrestricted budgeting, no allocation that requires balancing  Suggest budgeting to net zero, or positive (reflecting rollover funds to the following year).  For funds in deficit, use transfer codes to represent funding transfers –If a budget has a negative net budget (deficit), and no funding source is known at the time of budget, then leave as is  First time budgets will start from scratch, but roll forward to future years  Security considerations for granting FBD access to small units  Budget adjustments after July 1 st Suggestions

5. 5  Revenue –Endowment Income (55202) –Gifts (59009) –Balance Rollover (50000) –University Contribution (54900)  Labor –Fed directly from Salary Planner  Non Labor –Supplies –Travel  Transfers  Resources –Expense Account Codes: http://controller.nd.edu/assets/86987/account.pdf http://controller.nd.edu/assets/86987/account.pdf –Revenue Account Codes: http://controller.nd.edu/assets/93869/revenue_account_codes.pdf http://controller.nd.edu/assets/93869/revenue_account_codes.pdf Budgeting in Finance Budget Development

6. 6  Program Codes –Minimal changes for FY14 –2 digit codes to be mapped to 5 digits –Limited funds using multiple program codes –New program codes processed through the Controller’s Office  Distributed Charges & Cost Share –No longer using 76010 (Distributed Charges) –No longer using 72121 (Cost Sharing) –No longer using 54900 (University Contribution) –No longer using 81070 (Transfers-University)  Approved Distributed Charge Hierarchy which matches Transfer Pricing guidelines  Utilize Transfers for movement of Funding –81071 – Funding Transfer-Out (debit) –81072 – Funding Transfer-In (credit) Chart Change Impact

7. 7  Definition of Estimate – “A close guess of the actual value, usually with some thought or calculation involved”  Calculation FY14 Earnings Estimate = FY12 Actual Earnings * 1.03 * 1.03 * an exception is Endowed Chairs which will have a more precise estimate provided by Budget  Does NOT account for the following: –Endowments turned On/Off spending during FY12 or FY13 –Endowments that have received new gifts –Endowments that have been split (usually Endowed Chairs) –Endowments that have transferred funding In/Out  Endowment Funding Calculator  Please review your endowment income estimates for accuracy –You have more information on these funding sources –You have the ability to change the estimates in FBD Estimated Endowment Income

8. 8  Budgets will appear in Glez –Under “Budgeted Restricted” tab Budgets in GLez

9. 9  FBD Security  Attend SBP training in March/April  FBD closes 6/7  B@ND Survey  Follow-up focus group after budget process to get budgeting feedback  Follow-up focus group in December 2013 to get reporting feedback  B@ND FY15 – create document of best practices for restricted fund budgeting Next Steps