Budget Presentation

Local Fund Budget SeminarJanuary 2018

FY19 Local Fund Budget

Discuss Budget Shell Hierarchy

Review UAccess Analytics -Local Fund Budget Reports

Review Budget Entry Process -Budget System

Discuss budget assumptions for ERE & Administrative Service Charge

Budget Shell Hierarchy

Group Code: -Summary of Budget Shell Codes

Budget Shell Code: -Summary of Accounts/Sub Account-Used to group related activities

Account/Sub Account-Fiscal Officer and Budget Contact Person may or may not be the same-Not every account is budgeted through the Local Fund Budget Process (i.e. State, Cash, Locally Allocated)

F21

F211, F213, F214, F215

Various Accounts and Sub Accounts

Review Reports in UAccess Analytics

Analytics Reports: Local Fund Budget

Analytics Reports: Local Fund Budget…continued…

Analytics Reports: Balance Sheet & Income Statement

Analytics Reports: Transfer History

Analytics Reports: FY19 Proposed Local Fund Budget

Analytics Reports: FY19 Proposed Local Fund Budget…continued…

Analytics Reports : FY19 Proposed Budgeted Transfers

Analytics Reports: Transfers – Balance Available

Analytics Reports: Actual Transfers-Transactions

Analytics Reports: Budget Transfers-Transactions

Analytics Reports: RBC Analysis

Analytics Reports: Budget Shell Profile

Analytics Reports: Summary Object Code Roll Up

Review Budget Entry Process

To review who has access to specific Budget Shells

Budget Entry ProcessStep 1: Go to the Budget Office Website (www.budgetoffice.arizona.edu)

Click on the link "Budget System“ and “Local Fund Budget”

Budget Entry ProcessStep 2: Select the budget shell to enter FY18 Revised and FY19 Requested Budget

Budget Entry ProcessStep 3: Select Account/Sub Account to complete the FY18 Revised and FY19 Requested Budget.

Review “status” columns to identify progress of completion

Budget Entry ProcessStep 4a: Enter in FY18 Revised and FY19 Requested Budget

Budget Entry ProcessStep 4a: Enter in FY18 Revised and FY19 Requested Budget

Budget Entry ProcessStep 4a: Enter in FY18 Revised and FY19 Requested Budget

Budget Entry ProcessStep 4b: Save as “INCOMPLETE” or “COMPLETE”

Budget Entry ProcessStep 4c: Examples of Account Status for user workflow

• Shell Account Status is for user input only, to help track workflow. • Shell Account Status does not automatically route accounts to approvers• Accounts roll up to Budget Shells so amounts entered for accounts will affect total Budget Shell • If accounts are “unedited” then a “$0” budget will roll to that budget shell• If accounts are in “Incomplete” status, amounts entered will still roll to Budget Shell total• Budget Office and Approvers will not review the “status” of accounts before approving a budget shell

Example: FY 18 Revised Budget

Acct #1 Unedited

$0

Acct #2Incomplete

$2000

Acct #3 Complete

$1000

Budget Shell A$3000

Budget Entry ProcessStep 5a: Select Transfer of Funds (TOF) for budget shell

Complete Step 1 & 2 to navigate back to Budget Shell

Budget Entry ProcessStep 5b: Enter Transfers for all Account/ Sub Account within the budget shell – provide a detailed description

Click “update” at bottom of screen to update budget shell totals

Budget Entry ProcessStep 6a: -Review budget shells by viewing tab "Summary for Shell XXXX“ or “Summary for Group XX”

-Complete the forms in tab "Forms for Shell XXXX" for FY18 and FY19 Budget Variances and Fund Balance Variances

Budget Entry ProcessStep 6b: Complete the five forms (2 forms for FY18 Revised, 2 forms for FY19 Request, 1 Fund Balance Form)

As each form is completed, click the “update” link at the bottom of the form

Fund BalanceProvide a clear explanation for negative or large fund balances and significant decreases/increases in fund balance.

Revenue and ExpenditureEmail any supplemental worksheets or schedules (if applicable).

Budget Entry ProcessStep 6b: Complete the five forms (2 forms for FY18 Revised, 2 forms for FY19 Request, 1 Fund Balance Form)

As each form is completed, click the “update” link at the bottom of the form

Transfers In/OutIf further detail is needed to explain the transfers on the “TOF for Shell XXXX” worksheet.

Budget Entry ProcessStep 7a: Email Budget Shell Approver and Department Head a pdf copy of the budget shell(s) along with any attachments

Budget Entry ProcessStep 7b: Request “Budget Shell Approver” to review and "Log Out" each budget shell

Budget Shell Approver will click on the link "Local Fund Budget“ and “Logout Shell”

“Budget Shell Approver” will vary by department and college. Some departments and colleges may require specific routing to College Administrators.

Budget Entry ProcessStep 7c: Click on "Logout" button at bottom of budget shell screen. The budget shell will then move to the tab "Shell Status=BUDGET OFFICE"

Budget Entry Process: Tracking Shell Status

Vice President & College Routing Instructions

If your unit reports to: VP/College Approver Approver Email

SVP Health Sciences Anthony DeFrancesco adefrancesco@email.arizona.edu

SVP Research Sonia VegaAnh Le

soniav@email.arizona.eduanhle@email.arizona.edu

SVP Student Affairs & Enrollment Management

Teresa Whetzel twhetzel@email.arizona.edu

College of Engineering Kriss Pope kpope@email.arizona.edu

College of Fine Arts Sharon Young skyoung@email.arizona.edu

College of Humanities Toni Alexander tonilee@email.arizona.edu

College of Medicine Pam Ray pray@email.arizona.edu

College of Public Health Linda Tumellie tumellie@email.arizona.edu

Discuss FY19 budget assumptions for Employee Related Expenses (ERE) & Administrative Service Charge (ASC)

FY2019 Planning Assumptions

ERE – rates are not final• ~0.5 percentage point savings for full-benefit• ~1.5 percentage point savings for faculty ancillary• ~2.5 percentage point savings for classified temporary• no change for student employees • ~1.1 percentage point increase for graduate assistants• FY20 rates estimated at this time to be flat to 2% increase

Administrative Service Charge – no change

Salary Adjustments• suggest planning 1.5% to 2.0% pool based upon full benefits positions,

multi-year planning should be cognizant of inflation and not losing ground

• plan for impacts of Arizona Minimum Wage – Prop 206

Arizona Minimum Wage InitiativeProposition 206

• January 2017 – to $10.00 per hour• State employees (includes university

employees) technically are exempt• Universities will adjust their minimums in

order to remain competitive in the marketplace

• UA implementation delayed until July 2017

• January 2018 – to $10.50 per hour

• January 2019 – to $11.00 per hour

• January 2020 – to $12.00 per hour

Employee Related Expense (ERE)

Employee Class FY18 FY19

Employee Full-Benefit 32.0 31.5

Faculty Ancillary 22.8 21.3

Classified Temporary 17.8 15.3

Student Employee 2.2 2.2

Graduate Assistants 13.0 14.1

• FY19 ERE rates have not been finalized and may result in changes to FY19 Budget after submission• http://www.fso.arizona.edu/financial-management/ere-rates

Calculating Average ERE Rate

Average ERE Rate: ERE / Personal ServicesEstimate FY18 Revised: Use Average ERE Rate Estimate FY19 Request: Use Average FY18 Rates + 1.50% Increase

Estimating FY19 Budget by employee class using FY18 current rates may be beneficial if employee mix does not vary greatly.

FY18 Actuals FY18 Revised FY19 RequestedPersonal Services $150,000 $165,000 $170,000ERE Actual Costs $50,156 $55,172 $59,330Average ERE Rate 33.4% 33.4% 34.9%

Revenue Based Administrative Service Charge (ASC)

Calculating Average ASC

• Use current YTD sales and ASC to project FY18 Revised and FY19 Requested Budget• FY18 Revenue Based ASC Rate is 9.5%, use FY18 Rate for FY19 Requested Budget• Refer to FSO Policy 6.17 for detail of Administrative Service Charge (ASC)

http://policy.fso.arizona.edu/fsm/600/617

FY18 Actuals

FY18Revised

FY19 Requested

Total Sales (includes Internal & External Sales) $405,488 $600,000 $615,500ASC Actual Costs (Object Code 7955) $7,605% charged on Total Sales (ASC Costs/Total Sales) 1.88%External Sales Rate (1.88/9.5) 19.79% 19.79% 19.79%ASC % 9.5% 9.5% 9.5%ASC $$ (Total Sales X External Sales Rate X ASC Rate) $11,280 $11,572

Expenditure Based Administrative Service Charge (ASC)

Calculating Average ASC

• Use current YTD Expenses (excluding transfers out, ASC Charge, Stdt Aid) and ASC to project FY18 Revised and FY19 Requested Budget

• FY18 Expense Based ASC Rate is 1.0%, use FY18 Rate for FY19 Requested Budget• Refer to FSO Policy 6.17 for detail of Administrative Service Charge (ASC)

http://policy.fso.arizona.edu/fsm/600/617

FY18 Actuals

FY18Revised

FY19 Requested

Total Expenses (excludes transfers out, ASC Charge, Stdt Aid) $493,800 $550,000 $620,500ASC Actual Costs (Object Code 7956) $4,870% charged on Total Expenses (ASC Costs/Total Expenses) 0.986% 0.986% 0.986%ASC % 1.0% 1.0% 1.0%ASC $$ (Total Expenses X % charged on Total Expenses) $5,423 $6,118

Budget Office Resources and Contacts

Mario CalderonSenior Analyst, Budget and Financial

621-3322 calderom@email.arizona.edu

Veronica ChuSenior Analyst, Budget and Financial

621-3725 galavizv@email.arizona.edu

Carol CorryBudget Analyst

621-1496 ccorry@email.arizona.edu

Matt KennedyAnalyst, Budget and Financial

626-4002 kennedym@email.arizona.edu

http://www.budgetoffice.arizona.edu “Forms and Resources”

• LFB Presentation • LFB Access Form • Quick Reference Guides

“Budget System” • Link to Enter Local Fund Budget data

Completed and Received by the Budget Office by

Friday, February 16, 2018

Questions? Comments?