Transcript budgetbasics_pp

Chairs’ Budget Workshop
A Presentation by Your Friends in the
Budget Office
August 10, 2005
Welcome
Welcome Professional
Administrators
• Deans
•Management Assistants
• Department Chairs
•Administrative Assistants
• Business Managers
Agenda
Budget Basics
Types of Budgets
Budget Codes
Reports
Forms
Personnel
Small Group Exercises
3 Common Budget Scenarios
Wisdom from Veteran, Savvy Chairs
What It’s All About
The Essential Questions
What do I need to know to survive?
What departments am I responsible for?
What accounts?
How do I find the balances for these accounts?
What do I look for on the reports?
What do I do if something seems wrong or goes
wrong?
Budget Office Staff
• Chris Rosenbaum
• Budget Director
x1273
• Assistant Director
x1277
• Systems Analyst
x4488
• Senior Financial Analyst
x2575
• Budget Analyst
x5450
• Budget Analyst
x1274
• Financial Technician
x1273
• Ross Borden
• Stephanie Sackerman
• Barry Burbank
• Karen Wargo
• Janet Hurd
• Gay Barzee
Budget Office Website
Website
http://finad.boisestate.edu/budget/
• A GREAT Resource!
• Make it a Fave for Easy Access
What is Budgeting?
A. Allocating money for particular
purposes
B. A system for going broke
methodically
C. A mathematical confirmation of
your suspicions
D. Managing money for best effect
What is Budgeting Really?
Strategic Planning
Assessment
Budgeting
So…What is a Budget for?
1. Today: Support your activities
2. Tomorrow: Make your plans reality
Types of Budgets
Types of Budgets
1. Appropriated
2. Local
2. Auxiliary
3. Grants
Types of Budgets
1. Appropriated
• General Fund (tax) money from the
Legislature
– Higher Ed gets 10.5% of $2.2 billion
– BSU gets 31% of that ($69.9 million)
• ‘Cost of Instruction’ for Resident Students
• Certain Student Fees
– General Education Fees
– Adds another $39.0 million
Types of Budgets
2. Local
• Generated Internally
• Specific Services to Institutional Entities
• Supported by User Charges
– E.g. lab fees cover lab costs, not for non-lab
related items
• Could be purchased outside, but can
provided more effectively internally
– E.g. mailing services, duplicating services,
motor pools, and central stores
Types of Budgets
2. Auxiliary Enterprises
• Fees related, maybe not equal to, Cost
• Distinguishing Characteristics:
– Non-Academic
– Expected to be self-supporting
– Services focused on individuals & community, not
depts of institution
• Can get Student Fees or other support
• Cannot get Appropriated $ for Operating Costs
– Can charge appropriated depts for services
• E.g. Intercollegiate Athletics, Student Health,
Housing, Morrison Center, Select-A-Seat, etc
Types of Budgets
3. Grants
• Funds received for a specific purpose from a
specific entity
• Considered Short Term
– Can span multiple years
•
•
•
•
•
Strictly controlled…“strings attached”
“Soft” Funding
University reimbursed for Overhead expenses
Pre-Award: Office of Research Administration
Post-Award: Sponsored Projects Accounting
The Two Primary Codes
1. Department ID Codes
– Unique identifier for every unit, academic &
non-academic
– 3,000+ different Deptids
– e.g. 129A100001 = Electrical Engineering
2. Account Codes
– Categorizes Revenues & Expenses
– 1,000+ different Account Codes
– e.g. 410500 = Regular Employee Pay
The Deptid Code
Anatomy of the Department ID
Biology
Format: 3-1-6
006 A 100001
Chart of Accounts
1 = Main Campus
Fund Source
A = Appropriated
L = Local
G = Grant
Section/Unit Identifier
2 = BSU West
There are over 100 active Biology DeptIDs
A few Appropriated, many Grant, plenty of Locals
The DeptID Code
Examples of DeptID Codes
042A100001
Public Policy & Administration
042A100260
Public Policy & Admin Part-Time Faculty
042A100505
Public Policy & Admin Graduate Assistants
042G106003
Alaska Financial Capacity SRF
042G106018
EFC 10 “Base” Grant FY2004
042L101001
Public Affairs Program - Local
042L101011
City Managers & Administrators Training
The DeptID Code
What DeptID’s am responsible for?
•DeptID’s not always sequential by Dept or College
•PeopleSoft contains no College or VP code.
•Ergo, cannot run a College only report
•A future PeopleSoft enhancement?
•Until then, refer to monthly Appropriated Budget
Summary report sent by Budget Office to Deans
•Won’t show Grants
Account Codes
Account Codes
•
Categorizes Revenues & Expenses
•
6 digit, e.g. “503100”
•
Expenses fall into 3 broad categories:
1. Personnel Costs (PC), begin with “4”
2. Operating/Other Expenses (OE), begins “5”
3. Capital Outlay (CO), begin with “6”
•
There are hundreds of Account Codes (mostly
revenue)
The Account Codes
Anatomy of an Account Code
524000
Computer Hardware Repair& Maint
524100
Computer Software Repair & Maint
525000
Other Repair & Maint Services
525500
Freight
526000
Printing & Binding
•Begin with “5” so Operating/Other Expenses (4 = PC, 6 = CO)
•“524” is a computer hard/software repair related expense
•Subcategories denoted by 4th digit
Account Rollup Codes
Budget Rollup Categories
410000
411000
412000
420000
500000
530000
600000
Regular Salary
Part-Time/Irregular Salary
Student Salary
Fringe Benefits
Operating/Other Expenses
Travel
Capital Outlay
One More Code…
Program Code
– Categorizes Expenditures/Activities
• Coded when DeptID created
• for consistent reporting among
institutions
– 10 different Activities
•…
Program Types
Program
Program
Program
Program
Program
Program
Program
Program
Program
Program
01:
04:
06:
07:
08:
09:
10:
11:
12:
13:
Instruction
Research
Public Service
Library
Student Services
Physical Plant
Institutional Support
Academic Support
Aux. Enterprises (Athletics)
Scholarships
The Big Three
1. Reports
•
Very quick, more in Hands On
2. Forms
•
What form to use when
3. Personnel
•
Types, Changes, Fringe, Forms
Reports
PeopleSoft Financials
Printable
1. Budget History
2. GL Detail
3. GL Summary
4. Budget Status
5. Chartfields
View Only
1. Budget Transaction Detail
2. Budget Overview
3.
BSU Combo Data Values
From the Budget
Office
•
Appropriated Budget
Summary
–
–
–
College level
Sent monthly
To Deans, Bus Mgrs,
Mgmt Assistants
From Human
Resources
•
Payroll Expense
Distribution Report
Reports: How to Run
PeopleSoft Financials
Printable
1. Budget History
2. GL Detail
3. GL Summary
4. Budget Status
5. Chartfields
View Only
1. Budget Transaction Detail
2. Budget Overview
3.
BSU Combo Data Values
Detailed & easy
to follow
instructions on
the Budget
Office website
http://finad.boisestate.edu/budget/
Reports
From the Budget
Office
•
Generated by
Budget or HR,
delivered or
available to you
Appropriated Budget
Summary
–
–
–
College level
Sent monthly
To Deans, Bus Mgrs,
Mgmt Assistants
From Human
Resources
•
Payroll Expense
Distribution Report
Reports: Which to Use
Budget Action via Forms
As You Manage Your Budgets,
You May Need to:
1.
2.
3.
4.
Move Budget Around
Redirect Savings
Request Additional Budget
Create New / Delete Old
Departments
5. Change How Positions are Paid
Budget Forms
1. Move Budget Around
 Budget Transfer
2. Redirect Savings
3. Request Additional Budget
4. Create New / Delete Old
Departments
5. Change how positions are paid
Budget Forms
Budget Transfer
•
•
•
•
Transfer budget from one
Account and/or DeptID to
another or others
Appropriated funds only
Requires Dean and Budget
Office approval
Permanent or One-Time
Budget Forms
1. Move Budget Around
 Budget Transfer
2. Redirect Savings
 Request for Use of Institutional Salary
Savings
3. Request Additional Budget
4. Create New / Delete Old Departments
5. Change how positions are paid
Budget Forms
Request for Use of
Institutional Salary Savings
•
•
•
•
“Institutional” refers to Reg
Salary & Fringe…
considered University, not
the Dept, funds
Requires Dean and
Provost/VP approval
Affects specific positions
Permanent or One-Time
Budget Forms
1. Move Budget Around
 Budget Transfer
2. Redirect Savings
 Request for Use of Institutional Salary
Savings
3. Request Additional Budget
 Supplemental Funding Request
4. Create New/Delete Old Depts
5. Change how positions are paid
Budget Forms
Supplemental Funding
Request
•
•
•
•
Request for additional
funding
Meant to address
‘extraordinary’ challenges
or opportunities
Can you use your Carryforward instead?
Requires VP Finance
approval
Budget Forms
1. Move Budget Around
 Budget Transfer
2. Redirect Savings
 Request for Use of Institutional Salary
Savings
3. Request Additional Budget
 Supplemental Funding Request
4. Create New/Delete Old Depts
 DeptID Request/Maintenance
5. Change how positions are paid
Budget Forms
DeptID Request/Maintenance
•
•
•
•
Establish, Change or
Deactivate DeptIDs
Sets up new Deptid on
PeopleSoft and other
financial systems
Must specify funding source
Accounts at Rollup Level
Appropriated: Budget Office
Local: Admin Accounting
Grant: Office of Research Admin
Budget Forms
1. Move Budget
 Budget Transfer
2. Redirect Savings
 Request for Use of Inst. Salary Savings
3. Ask to Additional Budget
 Supplemental Funding Request
4. Create New / Delete Old Departments
 Dept. ID Request/Maintenance
5. Change how positions are paid
 E-EAF or BPAR
Forms: Which to Use
Personnel
•
•
•
•
Types of Employees
Adding/Changing Positions
Fringe Benefit Cost Calcs
Forms
1. Employee Action Form (E-EAF)
2. Budget/Position Action Request
(BPAR)
Types of Employees
1. Faculty and Teaching Staff
•
Prof, Assoc Prof, Asst Prof, Instructor
•
Adjuncts, Teachers
2. Administrative/Executive
•
President, VP, Dean, Director
•
Associate/Assistant VP/Dean/Director
2. Managerial/Professional
•
Accountant, Personnel Manager, Counselor, Business
Manager, System Analyst, Coach, Lawyer, etc.
3. Classified
•
•
Support Staff
Must comply with State Merit System
Benefit Eligibility
What Employees are
Benefit-Eligible?
•
Those Who Work:
– Half-time or More
– For at least 5 consecutive months
• Faculty appointed semester-by-semester
are not benefit-eligible
Fringe Benefits
What are the Fringe Benefits?
Cost Varies with Salary
1. Workers’ Comp
2. Unemployment
Insurance
3. Social Security
4. Medicare
5. Life Insurance
6. Employer
Retirement
Contribution
7.
8.
Retirement Sick
Leave
State Div. Of Human
Resources
(classified only)
Fixed Cost per Position
•
Health Insurance
(Medical, Dental,
Mental)
Fringe Benefits Calc
How to Calculate Fringe
Benefit Costs
•
•
Simple formula
% varies by employee type
–
–
–
–
Regular
Facilities, Trades, Custodial
Part-Time/Temp/Irregular
Student
http://finad.boisestate.edu/budget/
E.g. $40,000 x .2174 + $7,125 = $15,821
(total benefits here are 39.6% of Annual Salary)
Personnel Forms
1. Employee Action
2. Budget / Position Action Request
Used for All Personnel Actions, e.g.
• Create or Delete Positions
• Hire or Separate Employees
• Change Hours (FTE), Pay, Funding
Source, Title, etc.
Personnel Forms
Employee Action Form
•
For Faculty and Professional Employees
Only
• Entirely electronic, on-line since April
2005
– Complete documentation on-line
– Hard copy no longer accepted
• Needs to be filed for any Employee
Action
• Phase II may include Classified
Personnel Forms
Budget/Position Action Request
•
•
•
•
Request a New Position
Change an Existing Position
Must specify Fund Source Details
New Money Needed?
–
How much?
• Hard Copy only
Budget Lingo
Budget. —All Funds budget. —Department. —Program. —Account. —Annual Budget
Planning Process. —Types of Money. —Appropriated. —Local. —Budgeted Local. —
Auxiliary. —Grant. —Accounts. —Expenditure Object. —Subobject. —Budget Rollup.
—Regular Salary. —Irregular Salary. —Student Salary. —Fringe Benefits: —OE
(Operating or Other Expenses). —Travel. —Capital Outlay. —Capital Project. —
Encumbrance. —Faculty. Teaching Staff. —Official Faculty. —Executive/Administrative.
—Managerial/Professional. —Classified. —Affirmative Action. —JDQ. —ADA. —B/PAR.
—SBOE. —Central Funds. —E-EAF. —Backdate. —Payroll & Personnel Form. —Fringe
Benefits. —Budget Transfer. —Request for Use of Institutional Salary Savings. —
Supplemental Funding Request. —Department ID Request/Maintenance Form. —Letter
of Appointment. —PeopleSoft. —Chartfield. —Controlled Budget Budgets. —Journal
Entry. —Journal Number. —Allow Overdraft. —Budget History Report. —GL Detail
Report. —GL Summary Report. —Budget Status Report. —Chartfields Report. —
Budget Transaction Detail Report. —Budget Overview. —Combo Data Values. —
Appropriated Budget Summary Report. —Budget Detail Report. —HR. —Expense
Distribution Report. —Available Spending Authority. —Carryforward. —Encumbered.
—Revenue. —Expense. —Net. —Fiscal Year. —Calendar Year. —Holdback. —Fund
Balance. —Insufficient Funds. —Over Budget. —Object Code. —Original Budget. —
Permanent Budget Transfer. —One-Time Budget Transfer. —Project. —Revenue
Estimate. —Spending Authority Budget. —Remaining Budget. —Restricted Budget. —
Unrestricted Budget. —FTE. —A-260. —A-505. —A-506. —A-507. —PCN. —Purchase
Order. —STARS. —
Budget Lingo
GLOSSARY
@ Budget Office website:
http://finad.boisestate.edu/budget/
Part II: Scenarios
Common Situations & Strategies
to bring this all together…
• Scenario 1: Reports
• Scenario 2: Forms
• Scenario 3: Personnel
Led by Karen Wargo, Budget Analyst
WRAP UP
A Presentation by Your Friends in the
Budget Office
August 10, 2005
The Bottom Line
Limited Resources
No One Has Enough Funding
Any Increases Will Be Rare and
Not As Much As You’d Like
Do the Best You Can With What You
Have
Requires Active & Creative Mgmt
You are Accountable
The Process Works
For Best & Fastest Results…
Follow the Process
Fill out the Correct Form
Completely & Correctly
Otherwise, more work & delays for everyone
10,000+ transfers processed annually
Monitor Progress
New Budget Form
Request to Circumvent the
Normal Process
•
•
•
•
Much harder to complete
than any other form
Requires Budget Office
approval
Comes with a Parking
Ticket
Available soon for your
convenience
Wrap Up
Other Resources
Common Question
Resource Matrix…
Where do I go for
an answer to…?
Budget Office Staff
• Chris Rosenbaum, Budget Director
x1273
– Budget Development and Management
• Ross Borden, Assistant Director
x1277
– Appropriated Budget, STARS, Budget Database
• Stephanie Sackerman, Systems Analyst
x4488
– Budget Database, PeopleSoft Finance & HR, Reports
• Barry Burbank, Sr Financial Analyst
x2575
– Auxiliary Budgets, Capital Projects
• Karen Wargo, Budget Analyst
x5450
– Local Budgets
• Janet Hurd, Budget Analyst
x1274
– E-EAF
• Gay Barzee, Financial Technician
x1273
– Budget Transfers, Payroll & Personnel Change Forms
The End
Thank You
Professional
Administrators
Chair’s Budget Workshop
A Presentation by Your Friends in the
Budget Office
August 10, 2005