chairs’ budget workshop

Chairs’ Budget WorkshopChairs’ Budget Workshop

A Presentation by Your Friends in the

Budget OfficeAugust 10, 2005

WelcomeWelcome

Welcome Professional Administrators

• Deans

•Management Assistants

• Department ChairsDepartment Chairs

•Administrative Assistants

• Business Managers

AgendaAgenda

Budget BasicsTypes of Budgets

Budget Codes

Reports

Forms

Personnel

Small Group Exercises3 Common Budget Scenarios

Wisdom from Veteran, Savvy Chairs

What It’s All AboutWhat It’s All About

The Essential QuestionsWhat 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 StaffBudget Office Staff

• Chris Rosenbaum • Budget Director x1273

• Ross Borden • Assistant Director x1277

• Stephanie Sackerman • Systems Analyst x4488

• Barry Burbank • Senior Financial Analyst x2575

• Karen Wargo • Budget Analyst x5450

• Janet Hurd • Budget Analyst x1274

• Gay Barzee • Financial Technician x1273

Budget Office WebsiteBudget 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?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 BudgetsTypes of Budgets

Types of Budgets1. Appropriated2. Local2. Auxiliary3. Grants


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


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


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


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 CodesThe 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

006 A 100001

The Deptid CodeThe Deptid Code

Anatomy of the Department ID

Chart of Accounts

Fund SourceA = Appropriated

L = LocalG = Grant

Section/Unit Identifier

There are over 100 active Biology DeptIDsA few Appropriated, many Grant, plenty of Locals

Format: 3-1-6 B i o l o g y

1 = Main Campus

2 = BSU West

The DeptID CodeThe DeptID Code

Examples of DeptID Codes042A100001 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 CodeThe 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 CodesAccount 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)

Account Codes

The Account CodesThe Account Codes

Anatomy of an Account Code

•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

524000 Computer Hardware Repair& Maint

524100 Computer Software Repair & Maint

525000 Other Repair & Maint Services

525500 Freight

526000 Printing & Binding

Account Rollup CodesAccount Rollup Codes

Budget Rollup Categories410000 Regular Salary

411000 Part-Time/Irregular Salary

412000 Student Salary

420000 Fringe Benefits

500000 Operating/Other Expenses

530000 Travel

600000 Capital Outlay

One More Code…One More Code…

Program Code– Categorizes Expenditures/Activities

•Coded when DeptID created•for consistent reporting among

institutions– 10 different Activities

•…

Program TypesProgram Types

Program 01: InstructionProgram 04: ResearchProgram 06: Public ServiceProgram 07: Library Program 08: Student ServicesProgram 09: Physical PlantProgram 10: Institutional SupportProgram 11: Academic SupportProgram 12: Aux. Enterprises (Athletics)Program 13: Scholarships

The Big ThreeThe Big Three

1. Reports• Very quick, more in Hands On

2. Forms• What form to use when

3. Personnel• Types, Changes, Fringe, Forms

ReportsReports

PeopleSoft FinancialsPrintable

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 RunReports: How to Run

PeopleSoft FinancialsPrintable

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


ReportsReports

From the Budget Office

• Appropriated Budget Summary – College level– Sent monthly– To Deans, Bus Mgrs,

Mgmt Assistants

From Human Resources

• Payroll Expense Distribution Report

Generated by Budget or HR, delivered or available to you

Reports: Which to UseReports: Which to Use

Budget Action via FormsBudget Action via Forms

As You Manage Your Budgets, You May Need to:

1. Move Budget Around2. Redirect Savings 3. Request Additional Budget4. Create New / Delete Old Departments5. Change How Positions are Paid

Budget FormsBudget 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 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



2. Redirect Savings Request for Use of Institutional Salary

Savings

3. Request Additional Budget

4. Create New / Delete Old Departments



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




Savings

3. Request Additional Budget Supplemental Funding Request

4. Create New/Delete Old Depts



Supplemental Funding Request

• Request for additional funding• Meant to address

‘extraordinary’ challenges or opportunities

• Can you use your Carry- forward instead?

• Requires VP Finance approval




Savings

3. Request Additional Budget Supplemental Funding Request

4. Create New/Delete Old Depts DeptID Request/Maintenance



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 OfficeLocal: Admin AccountingGrant: Office of Research Admin


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 UseForms: Which to Use

PersonnelPersonnel

• 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 EmployeesTypes 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 EligibilityBenefit 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 BenefitsFringe Benefits

What are the Fringe Benefits?Cost Varies with Salary1. Workers’ Comp2. Unemployment

Insurance3. Social Security 4. Medicare5. Life Insurance6. Employer Retirement

Contribution

7. Retirement Sick Leave

8. State Div. Of Human Resources (classified only)

Fixed Cost per Position• Health Insurance

(Medical, Dental, Mental)

Fringe Benefits CalcFringe Benefits Calc

How to Calculate Fringe Benefit Costs

• Simple formula• % varies by employee type

– Regular– Facilities, Trades, Custodial– Part-Time/Temp/Irregular– Student


E.g. $40,000 x .2174 + $7,125 = $15,821(total benefits here are 39.6% of Annual Salary)

Personnel FormsPersonnel 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.


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


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 LingoBudget LingoBudget. —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 LingoBudget Lingo

GLOSSARY

@ Budget Office website:http://finad.boisestate.edu/budget/

Part II: ScenariosPart 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 UPWRAP UPA Presentation by Your Friends in the


The Bottom LineThe 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 WorksThe 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 FormNew 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 UpWrap Up

Other Resources

Common Question Resource Matrix…

Where do I go for an answer to…?

Budget Office StaffBudget 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 EndThe End

Thank You

Professional Professional AdministratorsAdministrators

Chair’s Budget WorkshopChair’s Budget Workshop

A Presentation by Your Friends in the


chairs’ budget workshop

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