Fy2008 Budget

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  • It can not be stressed enough how important a budget is and the preparation is essential. This years process is significantly different from previous years solely because this is a participatory process. The Office of Budgeting can not go out to every organization and do the detail analysis of the needs. As a financial manager or budget administrator, you are aware of the needs and how to prioritize them. It is important to note that this is the first year of this type of budgeting processing. All needs will not be able to be met; however, EKU can develop a plan to develop these needs in future years.
  • This year the focus is on the current unrestricted and auxiliaries. Current unrestricted funds consist of education and general organizations. The term current unrestricted infers these funds can be used for general purposes. Auxiliaries are considered self supporting enterprises. Example, Housing. In FY2009, the Office of Budgeting will look at incorporating the other funds into the budget process.
  • Banner: Use FGIBDST to see the fund type. Drill down to the budget transaction and see if there is a BD01 entry. Website: Use the link that provides the orgs with a University base budget FY2007 Budget Book: Use the budget book to locate your org. If it is not in the budget book it is not a University base budget.
  • This years process is significantly different from previous years solely because this is a participatory process. The Office of Budgeting can not go out to every organization and do the detail analysis of the needs. As a financial manager or budget administrator, you are aware of the needs and how to prioritize them. It is important to note that this is the first year of this type of budgeting processing. All needs will not be able to be met; however, EKU can develop a plan to develop these needs in future years.
  • When we think of budgeting we think of something that is done at the end of the year. Budgeting is actually a 12 month process that repeats itself annually.
  • BREAK
  • Fy2008 Budget

    1. 1. FY2008 Budget Preparation Training
    2. 2. Housekeeping <ul><li>Please turn cell phone, pagers, blackberries off </li></ul><ul><li>Restrooms </li></ul><ul><li>Ground rules </li></ul>
    3. 3. Agenda <ul><li>Overview </li></ul><ul><li>Budget Cycle </li></ul><ul><li>Preparation </li></ul><ul><li>Process </li></ul><ul><li>Questions </li></ul>
    4. 4. OVERVIEW
    5. 5. Overview <ul><li>Why is a budget important? </li></ul><ul><li>Why are we being asked to participate in the budget? </li></ul>This budget process is meant to be an inclusive opposed to an exclusive process. By contributing to the process, it allows financial managers to be accountable. A budget is an important tool because it provides financial managers a baseline for operating for a fiscal year in order to control expenditures. Budgets also provide a tool for forecasting future expenditures.
    6. 6. Who should participate in the budget process? Areas impacted <ul><li>Current Unrestricted (fund 110000) </li></ul><ul><li>Auxiliary (funds 310000, 330000, 340000, 360000, 370000) </li></ul>Areas not impacted <ul><li>Temporary Current Unrestricted (funds 14xxxx) </li></ul><ul><li>Grants and Contracts (funds 2xxxxx) </li></ul><ul><li>Plant (funds 9xxxxx) </li></ul>
    7. 7. How do I determine if I participate? <ul><li>Banner </li></ul><ul><li>Website </li></ul><ul><li>FY2007 Operating Budget Book </li></ul>
    8. 8. What do I need to get started? <ul><li>Current budget </li></ul><ul><li>Labor distribution </li></ul><ul><li>Budget information from your area </li></ul><ul><li>Current fee list </li></ul>TSJSECF – Section Fee Setup FGJOACR – Op. Ledger with Ranges FGIBDST – Organization Budget Status Purchase requests Travel requests Student workers NHJLDST – Labor Distribution Bi-weekly, semi-monthly, faculty, student worker
    9. 9. Changes in FY2008 1. Line item budgets Current 610000 – Salaries and Wages 620000 – Employee Benefits FY2008 611000 – Faculty Salaries 611100 – Staff Salaries 611700 – Classified Wages 621100 – Kentucky Teachers Retirement 621200 – KTRS Overmatch Contribution 621300 – Optional Retirement
    10. 10. Changes in FY2008 (cont) 700000 – Operating Expenses Current 71000B – Supplies 710400 – Equipment Repairs 710800 – Office Supplies 75000B – Travel 750010 – Travel In State 750020 – Travel Out of State FY2008 2. Pooled budgets
    11. 11. Changes in FY2008 (cont) 3. Capital Pools 5. Formal process 4. End user participation <ul><li>Capital pools will be established to allow for a repair and replacement program for purchases over $3,000 such as: </li></ul><ul><li>Computer Equipment - Equipment/Furniture </li></ul><ul><li>- Network Equipment - Audio/Visual Equipment </li></ul>
    12. 12. BUDGET CYCLE
    13. 13. Two Components of Budget Cycle Preparation July to December All the planning is prepared during the first six months. Scenarios/Assumptions are developed. Execution January to June Budget is entered and reviewed. There will be several iterations of the budget. Scenarios/Assumptions that were developed in the first half of the cycle might have changed.
    14. 14. Budget Cycle Board of Regents Approval of budget guidelines Units submit proposals for funding requests Unit Budget Hearings Funding notification to Units Units enter budgets Budget guidelines developed Complete preliminary forecast Update analytical tools and prepare budget assumptions June May April March February January December November October September August July Final budget approval by Board of Regents
    15. 15. Timeline *This form goes directly to HR **This form goes directly to Facilities Dec 21, 2006 Nov 16, 2006 c. Temporary and Permanent Funding Proposal Requests Dec 1, 2006 Nov 1, 2006 b. Request for Facilities Changes Proposals** Dec 8, 2006 Nov 1, 2006 a. Non-capital Proposal Requests Funding Proposals Dec 21, 2006 Nov 2, 2006 d. Reorganizations/Restructing* Dec 21, 2006 Nov 2, 2006 c. Position reclassifications* Dec 21, 2006 Nov 2, 2006 b. Proposals for new positions* Dec 21, 2006 Nov 17, 2006 a. Unit position base verification Position Base Nov 30, 2006 Oct 31, 2006 b. Revenue projections Nov 30, 2006 Oct 31, 2006 ii. Non mandatory Nov 30, 2006 Oct 31, 2006 i. Mandatory a. Fee proposal process Revenue Base Nov 17, 2006 Capital Pool Proposals Dec 21, 2006 Nov 1, 2006 Distribute Auxiliary Budget Packets Nov 1, 3, 8, 10, 16 Budget Preparation Training DUE DISTRIBUTE
    16. 16. Document Flow Financial Manager Dean Provost Financial Manager Vice President Office of Budgeting Academic Non-Academic Unit=Organization Group=Direct Reports to President Manager, Director, Assistant Vice President
    17. 17. Break Break
    18. 18. PREPARATION
    19. 19. Areas of Preparation <ul><li>Revenue </li></ul><ul><li>Funding </li></ul><ul><li>Position </li></ul>
    20. 20. Revenue Revenue is defined as a stream of income that comes into the University. It can be broken down into several categories. State appropriation Tuition Government grants and contracts Mandatory fees Non mandatory fees
    21. 21. Mandatory Fees Mandatory fees are a type of revenue that every student is required to pay. These fees are different from tuition. Examples <ul><li>Technology Fee </li></ul><ul><li>Student Recreation Fee </li></ul><ul><li>Athletic Fee </li></ul>
    22. 22. Non Mandatory Fees Non mandatory fees are a type of revenue that not every student is required to pay. These fees are charged for specific purposes. Examples <ul><li>Class Fee </li></ul><ul><li>Testing Fee </li></ul><ul><li>Transcript </li></ul><ul><li>Graduation Fee </li></ul><ul><li>Orientation Fee </li></ul><ul><li>Returned Check Fee </li></ul>
    23. 23. Position <ul><li>Budgeting for positions at the beginning of the year is beneficial because it allows organizations to anticipate their needs. </li></ul><ul><li>Salary </li></ul><ul><li>Non-salary </li></ul><ul><li>Contractors </li></ul><ul><li>Work study </li></ul><ul><li>It allows for being proactive versus reactive. </li></ul>
    24. 24. Funding <ul><li>There are four components that make up a funding request. </li></ul><ul><li>Capital Requests </li></ul><ul><li>Non Capital Requests </li></ul><ul><li>Facility Changes </li></ul><ul><li>Operating Budget </li></ul>
    25. 25. Capital Requests <ul><li>Over $3,000 </li></ul><ul><ul><ul><li>Computer Equipment </li></ul></ul></ul><ul><ul><ul><li>Network Equipment </li></ul></ul></ul><ul><ul><ul><li>Audio/Visual Equipment </li></ul></ul></ul><ul><ul><ul><li>Equipment/Furniture </li></ul></ul></ul><ul><li>These are one time expenditures that should not be funded out of an operating budget. In FY2008, they will be funded through pools. </li></ul><ul><li>(Please note that there might be a need to request a change in facilities when these items are purchased.) </li></ul>
    26. 26. Non Capital Requests <ul><li>Under $3,000 </li></ul><ul><ul><ul><li>Computer Equipment </li></ul></ul></ul><ul><ul><ul><li>Network Equipment </li></ul></ul></ul><ul><ul><ul><li>Audio/Visual Equipment </li></ul></ul></ul><ul><ul><ul><li>Equipment/Furniture </li></ul></ul></ul><ul><li>Typically these are one time expenditures that will cause a baseline budget to change each year. </li></ul><ul><li>(Please note that there might be a need to request a change in facilities when these items are purchased.) </li></ul>
    27. 27. Request for Facilities Changes <ul><li>A R equest for Change to Facilities is required when one or more of the following is needed for any item in any EKU facility: </li></ul><ul><ul><ul><li>Alteration </li></ul></ul></ul><ul><ul><ul><li>Addition </li></ul></ul></ul><ul><ul><ul><li>Moving to another or within a facility </li></ul></ul></ul><ul><ul><ul><li>Capital Maintenance - completed cost of project will be greater than $500 </li></ul></ul></ul><ul><li>Typically this is a one time expenditures that will cause a baseline budget to change each year. </li></ul>
    28. 28. Operating Budget <ul><li>Maintenance and operating changes </li></ul><ul><ul><ul><li>Permanent </li></ul></ul></ul><ul><ul><ul><ul><li>A ongoing addition of monies to an operating budget. </li></ul></ul></ul></ul><ul><ul><ul><li>Reallocation </li></ul></ul></ul><ul><ul><ul><ul><li>An internal reassignment of funds. </li></ul></ul></ul></ul><ul><ul><ul><li>Temporary </li></ul></ul></ul><ul><ul><ul><ul><li>A one time infusion of additional monies to an operating budget. </li></ul></ul></ul></ul><ul><li>Planning, Planning, Planning </li></ul>
    29. 29. Break Break
    30. 30. THE PROCESS
    31. 31. Now I know the components, what do I do? Forms Forms Forms Forms Forms Forms Forms Forms Forms Forms Forms
    32. 32. www.financialaffairs.eku.edu/budget/forms/ Website
    33. 33. Forms 1. Capital Request 2. Fee Request 3. Reclass/New Position Request 4. Non Capital Request 5. Request for Facilities Changes 6. Temporary and Permanent Funding Requests
    34. 34. QUESTIONS?
    35. 35. Contact Karen Neubauer Executive Director of Budgeting 622-4642 [email_address] Emily Fogg Budget Analyst 622-4642 [email_address] www.financialaffairs.eku.edu/budget [email_address]

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