Transcript Slide 1

FY2009 WEB-BASED BUDGET
DEVELOPMENT PROCESS
“A” FUNDS
Developed and Presented by
The Budget Office
&
eBusiness Solutions
Budget Office Objectives
1)
Provide convenient tool for submitting base budget changes
2)
Establish the FY09 base budget amount for each unique
Department/Fund & object code combination
3)
Improve data control and processing:
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Safeguard core data
Reduce consolidation errors
Better use time verifying budget information - not creating
spreadsheets and pasting changes
New for FY2009 – ability to add multiple lines to aid in
tracking 36400/36500 offsets
4)
Allow sufficient time to compile the Board of Trustees Budget
Document
5)
Enable an accurate and timely posting of FY2009 base budget
to the general ledger
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General Information – Tuition & Fees
Tuition & Fees
Request for changes was due April 1
Academic units – Tuition estimates
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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 change 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 and fluctuations in carryforward.
University tuition increase
Amount of increase unknown at this time
Academic units do NOT budget for university increase
General Information – Pay Package
Pay Package & Retirement
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Currently, the House Budget includes a 1% pay increase-across the board for all
classified employees and ‘without uniformity’ for unclassified. Senate Finance
includes a 0% pay increase.
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If there is a Pay Package, the State only funds a portion of the pay increase and
the difference will have to be covered by tuition revenue.
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The employer portion of the retirement contribution goes up a minimum of .18%
beginning July 1, 2008 to fund the COLA for retirees from last year.
There are no new state funds allocated to cover this increase, however this
item is likely to be included in the tuition increase.
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Health insurance is expected to increase on January 1, 2009. The percentage
increase in unknown at this time. An estimate of the cost is likely to be included
in the tuition increase.
General Information – State Appropriations
All USC Campus base state budgets are cut in both the House and Senate
appropriations bills for FY2009. This is a loss of recurring state support.
Cut to USC Columbia (excluding the School of Medicine)
House (2.68% reduction)
$4,301,711
Senate Finance (2.52% reduction)
$4,047,032
In the initial budget development, the cut will be taken in the General Fund, but
will be assessed to units late in the budget development cycle or in August. The
cut may be covered through a combination of tuition increase and unit
reductions.
Unless the state cut is covered 100% through a tuition increase, once a decision
is reached on how to spread the cut to units, service units will see a reduction to
the tax-in (81150) while academic units will see both a reduction to state
appropriations (31500) and a reduction to the tax-out (86150).
There is a possibility of mid-year cuts after the fiscal year begins.
General Information
Service Units
Beginning in FY08, Appropriations (31500) were removed
and placed in 81150
Academic Units
FEI funding added to appropriation (31500)
Budget Development Basics
February 29, 2008 budget is the starting point
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“Freeze” on permanent transfers was February 29
Units can still make non-recurring transfers – but
any changes since March 1 are not reflected in the
base FY2009 budget
Why this date ?
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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
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Non-Recurring Budget Changes
Budget Office Adjustments – NON-RECURRING
 Examined all non-recurring budget transfer changes processed
through February 2008
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Removed non-recurring 3’s
Within responsibility - 36400/36500
Outside responsibility - 363XX/368XX
Carryforward 31533/31534
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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
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To offset changes in resources, expenditure objects were changed
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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
Recurring (Permanent) Budget Changes
Budget Office Adjustments –RECURRING
Recurring 3’s:
Within responsibility - 37400/37500
Outside of responsibility - 373XX/378XX
Rolled up to tax
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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.
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Permanent Budget Changes – Impact on Tax
For the FY2009 base budget development - the
Budget Office moved all permanent transfers to
the tax except FEI transfers
Examples:
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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
Tax
Academic Units
 Tax out was recalculated based on new allocation factors
 Revised (3 factor) tax method used
Service Units
 No additional resources are allocated at this time
Tax
FY2008 Base 86150
FY2008 BOT Allocations,
Swap of State Dollars – Increased 86150
FY2008 Total Tax
FY2009 Base 86150
$ 120,205,635
$ 25,666,506
$ 145,872,141
$145,872,141
Web-based Budget Development Tool
WEB BASED BUDGET
Units Can…
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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
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Enter unit dollar changes and comments at the object code level
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Budget additional resources
Excluding the University tuition increase and carryforward
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Drill down on Dept/Fund to see all changes processed by the Budget Office
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Download all data to an excel file
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Add object code for a new revenue or new expenditure budget
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Establish new Dept/Fund accounts and budgets
*Must submit account memoranda by May 2, 2008
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Make comments for Budget Office and for unit records
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Confirm that resources – expenses = zero at the Dept/Fund and responsibility
unit level
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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
Some units will need to remove negative budget
amounts in 5XXXX objects
Your Work is Complete When…
 Unit budgets are changed and comments are provided, if necessary, at the object
code level by May 2, 2008
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Account memoranda are submitted for newly established Department/Fund
accounts
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Unit budgets do not have debit amounts in revenue object codes and credit
amounts in expenditure object codes
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All resources and expenditures are equal
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You send your budget analyst an e-mail indicating you have completed your
budget entry
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Units will check box to indicate actions are complete
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Budget Office will lock responsibility at completion
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Web-based Budget Development Dates
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Web-based budget tool available for all units
beginning Thursday, April 17
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Budget Office will email when the system is up
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All units will have until Friday, May 2 to complete
budget changes
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When you are finished, please email your budget
analyst and check box on web-based system to
indicate completion
QUESTIONS