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Tab 6 - RMP Campus Budget

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Transcript

  • 1. Revenue Management Program (RMP) Campus Budget October 23 – 24, 2006
  • 2. Campus Budget – Oct 2006
    • AGENDA
      • Overview
      • Major changes
        • Supplemental Allocations
          • SWAT
        • Budgeting for Prior Year Encumbrances
        • Allocating Prior Year Balances
          • Equity and Budgets
        • Building a Budget
      • Detail - How the budget is built
        • First Year (2006-2007)
        • Subsequent Years
  • 3. Major Changes
    • Supplemental Allocation Orders
    • Funding Encumbrances from prior years
    • Balances Remaining
      • Allocating in future years
    • Building the budget and reconciling it
  • 4. Components of the “New” Campus Budget
    • General Fund state support
    • Campus Estimated Revenue
    • Supplemental Funds Received (SWAT)
    • Equity Reserve for Prior Period Encumbrances
    • Equity Reserve for “Roll Forward” funds
    • Campus planned use of Unallocated Equity or Campus planned contribution to Unallocated Equity
  • 5. Sample Budget Template
  • 6. SWAT
  • 7. Past
    • Budgeting within the Budget Act Appropriated General Fund – The Old Way
      • Budget Administration handled by CO Financial Management Services (FMS)
      • FMS processes two notices
        • Notice of Allocation Order to campuses
        • Transaction Request to the State Controller
      • Both the campus and the SCO recorded a budget entry
      • If either party recorded these transactions in error there was a reconciling factor in the SAM99
  • 8. Present
    • Budgeting within the CSU Operating Fund Today
      • State University Trust Fund (SCO Fund 0948)
      • CSU Operating Fund (CSU Fund 485)
      • Budget Administration handled by CO Financial Management Services
      • FMS processes a Systemwide Allocation Transfer (SWAT Notice)
        • Notice Sent to:
          • Campuses Budget Office
          • CO Systemwide Financial Operations
      • CO SFO will distribute an AD NOAT to campus
      • Both the campus and the SCO will record an ACCOUNTING entry
        • Campus MAY record a budget entry
  • 9. Future
    • Budgeting within the CSU Operating Fund in the Future
      • State University Trust Fund (SCO Fund 0948)
      • CSU Operating Fund (CSU Fund 485)
      • Budget Administration handled by CO Cash Management Operations
      • CMO processes two notices
        • Systemwide Allocation Transfer (SWAT Notice)
          • Sent to campus budget office
        • CSU Cash Posting Order
          • Sent to campus accounting office
      • There is no activity between the CSU and the State Controller
      • Campus MUST record an accounting entry
      • Campus MAY record a budget entry
  • 10. Past, Present and Future
    • Past
      • Allocation Orders for all Budgeted Funds
        • From CO to SCO
        • From CO to campus
        • Campus posts a budget entry
  • 11. Past, Present and Future A little more detailed
    • Present
      • Allocation Order to General Fund for Final Budget State Support Only
        • Not operating within the general fund
      • CO will process PFA moving funds to campus trust account at SCO
        • CO will notify SCO – (PFA)
        • CO will notify Campus – (SWAT and AD-NOAT)
      • SWAT - Systemwide Allocation Transfer
        • Campus posts a budget
          • Revenue budget in 506100
          • Expenditure Budget in appropriate program
      • AD-NOAT
        • Campus posts an accounting entry
          • Credit revenue 506100
          • Debit fund Balance Clearing
  • 12. Past, Present and Future
    • Future
      • CO will process a cash transfer to the campus account at CSU Central Bank
      • CO will notify Campus (SWAT and Cash Posting Order)
      • SWAT - Systemwide Allocation Transfer
        • Campus posts a budget
          • Revenue budget in 506100
          • Expenditure Budget in appropriate program
      • Cash Posting Order
        • Campus posts an accounting entry
          • Credit revenue 506100
          • Debit Cash
      • No more allocation orders to campus
  • 13. Supplemental Allocation Past, Present and Future Summary
  • 14. Supplemental Allocation Past, Present and Future Summary
  • 15. Budgeting for Prior Year Encumbrances
  • 16. The “Old” Way
  • 17. The “New” Way
  • 18. Equity and Budgets
  • 19.  
  • 20. News Flash
    • GOOD NEWS
      • No More FIRMS Budget Edits
        • Submission is a breeze with lack of error messages
      • No More SAM99 for General Fund (0001)
        • One Big Pot of Money at the Chancellor’s Office
    • BAD NEWS
      • No More FIRMS Budget Edit
        • Need new method to ensure accuracy
      • No SAM99 for CSU Operating Fund (485)
        • Need new method to ensure accuracy
  • 21. Building the Campus Budget
    • Final budget allocation from CO to Campus
      • The only notification the campus will receive for this amount is the annual Final Budget Memo from the CO
      • Campuses will not have a general fund account at the State Controller
        • All CSU General Fund monies will be held centrally in a CO managed account at the SCO
  • 22. Budget Control Ideas
    • Campus Budget Controls (CSU Fund 485)
      • Ideas to control/reconcile budgets
        • 06/07 Transition – Campus PFA (690003)
        • State Appropriation Adjustment (690106)
        • SWAT In (506100)
        • Campus Revenue from Fees (5XXXXX)
        • Beginning in 07/08 – Fund Equity (305002)
  • 23. Sacramento State Example
  • 24. Sac State Example
  • 25. San Diego Example
  • 26. San Diego Example
  • 27. How the budget is built
    • Source of funds to consider
      • Prior Year Unspent Amounts (Fund Equity)
          • This will be left over Student Fee Money as all CSU State appropriated amounts will be spent in the year of appropriation
      • Current Year State Appropriation Amount (e.g., $ .70)
      • Student Fee / Revenue Amounts (e.g., $ .30)
  • 28. How the budget is built (continued)
    • Student Fee and Revenues:
      • SHALL be included: SUF, Non-Resident Tuition, Mandatory Course Fees, Application, Transcripts, Rejected Checks, Library, Administrative Allowances, CERF (573) Reimbursement, Parking (583) Reimbursement, and other Miscellaneous Fees
      • MAY be included (FSAC will review for final determination): Work Study, Contracts & Grants Overhead, Student Health Services, Independent Operations Revenue, Trust Transfers and other Campus Specific Revenues
  • 29. How the budget is built (continued)
    • How the budget is built (continued)
      • CMS Tools for Managing the Campus Budget
        • Sac State Example - CMS Scenario ChartField
          • Unique 485 Fund with a Global DeptID
            • $.06 ROLLFWD – Prior Year Unspent
            • <.03> ROLLFWD – PY Enc to Departments
            • <.01> ROLLFWD – BBA to Division Level
            • .70 APPROP – State Appropriation for CY
            • ~ Agrees to CO ACR (or new report)
            • .30 FEES – Student Fee/Revenue for CY
            • <.90> ALLOC – Budget Out to Campus Departments
          • Primary 485 Fund with Campus User DeptID’s
            • $.03 ROLLFWD – PY Encumbrances for Departments
            • .01 ROLLFWD – BBA for Division Level
            • .90 ALLOC – Budget In for Campus Departments
            • .00 BUDTX – Internal Campus Budget Transfers
  • 30. Ongoing Budget
    • Handling Your Budget on an Ongoing Basis
      • Need to Consider
        • Beginning Fund Equity (equal to PY Budget less Actuals)
          • Outstanding PY Encumbrances
          • Reserves
            • Major equipment purchase, working capital, emergency reserve, etc.
          • Remaining Fund Equity Balance
        • State Appropriation (.70 – CO to use for Payroll)
        • Estimated Fee Revenue (.30)
      • Campus Options
        • Rollforward PY unspent (encumbrance and BBA) and then allocate current year budget
        • Rollforward PY encumbrance amount only and then allocate current year budget (BBA is kept for campus-wide uses)
        • Rollforward 100% of PY encumbrances and a percentage of BBA and then allocate current year budget
  • 31. Equity and BBA
    • Relationship between Equity and BBA
      • Fund Equity – FIRMS Object Code 305002 (Fund Balance – Continuing Appropriation)
        • Cumulative Actuals Net Income/Loss
      • EQUALS
      • Budget Balance Available plus Encumbrances OR Budget less Actuals
        • when “Budget” is equal to CY State Appropriation plus CY SWATs plus CY Actual Fee Revenue plus Beginning Fund Equity
  • 32. Equity Reserves
    • Reserve Policy
      • Current Equity Reserve Object Codes
        • Capital improvement
        • Equipment acquisition
        • Program development
        • Future debt service
        • Facilities, maintenance & repairs
        • Operations (working capital)
        • Campus/debt obligations (encumbrances)
        • Catastrophic events
      • Possibility for additional object codes to meet CSU Operating Fund reserve requirements
  • 33. It is what it is
    • It is what it is
      • Not required to accrue to Zero in CSU Fund 485 at Year End
      • Legal Expenditures and Encumbrances will reflect what really happened in that Fiscal Year
      • Management will want to establish Campus Reserve Policy with CO guidance
        • Major Equipment Purchases
        • Business Continuity Planning
        • Cash Flow / Working Capital Needs
        • Other
  • 34. Things to Remember
    • During 2006-2007 all campuses will de-allocate their remaining general fund balance to the CO (By year end 690106 in CSU Fund 485 will equal this amount)
    • Campus generated Payroll PFA transactions between General fund and Trust have been recorded in CSU Fund 485 FIRMS Object Code 690003
    • CO generated Payroll PFA transactions shall be recorded in CSU Fund 485 FIRMS Object Code 690106
    • For 2006-2007 the sum of 690003 and 690106 in CSU Fund 485 will equal the campus state support allocation
    • 2007-2008 690003 no longer used
      • State support = 690106
  • 35. Example Worksheets
    • Excel Files from Presentation
      • Sac State Example
      • Summary of SWAT – PAST Present and Future
      • San Diego Example
  • 36. Questions - Contacts
    • Questions???
      • Debbie Brothwell, SLO
      • Crystal Little, San Diego
      • Kendal Chaney-Buttleman, Sac State
      • Stacy Hayano, Sac State