fy2008 budget
DESCRIPTION
TRANSCRIPT
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FY2008
Budget Preparation Training
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Housekeeping
• Please turn cell phone, pagers, blackberries off• Restrooms• Ground rules
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Agenda
Overview Budget Cycle Preparation Process Questions
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OVERVIEW
Overview
Why is a budget important?
Why are we being asked to participate in the budget?
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.
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Who should participate in the budget process?
Areas impacted Current Unrestricted (fund 110000)
Auxiliary (funds 310000, 330000, 340000, 360000, 370000)
Areas not impacted Temporary Current Unrestricted (funds 14xxxx)
Grants and Contracts (funds 2xxxxx)
Plant (funds 9xxxxx)
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How do I determine if I participate?
Banner
Website
FY2007 Operating Budget Book
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What do I need to get started?
Current budget
Labor distribution
Budget information from your area
Current fee list 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
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Changes in FY2008
1. Line item budgets
Current610000 – 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
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Changes in FY2008 (cont)
700000 – Operating Expenses
Current71000B – Supplies
710400 – Equipment Repairs
710800 – Office Supplies
75000B – Travel
750010 – Travel In State
750020 – Travel Out of State
FY2008
2. Pooled budgets
Changes in FY2008 (cont)
3. Capital Pools
5. Formal process
4. End user participation
Capital pools will be established to allow for a repair and replacement program for purchases over $3,000 such as:- Computer Equipment - Equipment/Furniture
- Network Equipment - Audio/Visual Equipment
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BUDGET CYCLE
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Two Components of Budget Cycle
Preparation July to DecemberAll the planning is prepared during the first six months.
Scenarios/Assumptions are developed.
Execution January to JuneBudget 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.
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Budget Cycle
June
May
April
March
February
January
December
November
October
September
August
JulyFinal budget approval by Board of Regents
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
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TimelineDISTRIBUTE DUE
Budget Preparation Training Nov 1, 3, 8, 10, 16
Distribute Auxiliary Budget Packets Nov 1, 2006 Dec 21, 2006
Capital Pool Proposals Nov 17, 2006
Revenue Base
a. Fee proposal process
i. Mandatory Oct 31, 2006 Nov 30, 2006
ii. Non mandatory Oct 31, 2006 Nov 30, 2006
b. Revenue projections Oct 31, 2006 Nov 30, 2006
Position Base
a. Unit position base verification Nov 17, 2006 Dec 21, 2006
b. Proposals for new positions* Nov 2, 2006 Dec 21, 2006
c. Position reclassifications* Nov 2, 2006 Dec 21, 2006
d. Reorganizations/Restructing* Nov 2, 2006 Dec 21, 2006
Funding Proposals
a. Non-capital Proposal Requests Nov 1, 2006 Dec 8, 2006
b. Request for Facilities Changes Proposals** Nov 1, 2006 Dec 1, 2006
c. Temporary and Permanent Funding Proposal Requests Nov 16, 2006 Dec 21, 2006
*This form goes directly to HR **This form goes directly to Facilities
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Document Flow
Financial Manager
Dean Provost
Financial Manager Vice President
Office of Budgeting
Unit=Organization Group=Direct Reports to President
Manager, Director, Assistant Vice President
Break
Break
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PREPARATION
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Areas of Preparation
Revenue
Funding
Position
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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
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Mandatory Fees
Mandatory fees are a type of revenue that every student is required to pay. These fees are different from tuition.
ExamplesTechnology FeeStudent Recreation FeeAthletic Fee
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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.
ExamplesClass FeeTesting FeeTranscript
Graduation FeeOrientation FeeReturned Check Fee
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Position
Budgeting for positions at the beginning of the year is beneficial because it allows organizations to anticipate their needs.
Salary Non-salary Contractors Work study
It allows for being proactive versus reactive.
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Funding
There are four components that make up a funding request.
•Capital Requests•Non Capital Requests•Facility Changes•Operating Budget
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Capital Requests
Over $3,000• Computer Equipment• Network Equipment• Audio/Visual Equipment• Equipment/Furniture
These are one time expenditures that should not be funded out of an operating budget. In FY2008, they will be funded through pools.
(Please note that there might be a need to request a change in facilities when these items are purchased.)
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Non Capital Requests
Under $3,000• Computer Equipment• Network Equipment• Audio/Visual Equipment• Equipment/Furniture
Typically these are one time expenditures that will cause a baseline budget to change each year.
(Please note that there might be a need to request a change in facilities when these items are purchased.)
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Request for Facilities Changes
A Request for Change to Facilities is required when one or more of the following is needed for any item in any EKU facility:
• Alteration• Addition• Moving to another or within a facility• Capital Maintenance - completed cost of project
will be greater than $500
Typically this is a one time expenditures that will cause a baseline budget to change each year.
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Operating Budget
Maintenance and operating changes• Permanent
A ongoing addition of monies to an operating budget.
• ReallocationAn internal reassignment of funds.
• TemporaryA one time infusion of additional monies to an operating budget.
Planning, Planning, Planning
Break
Break
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THE PROCESS
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Now I know the components, what do I do?
Forms
Forms
Forms
Forms
Forms
Forms
Forms
Forms
Forms
Forms
Forms
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www.financialaffairs.eku.edu/budget/forms/
Website
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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
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QUESTIONS?
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Contact
Karen Neubauer
Executive Director of Budgeting
622-4642
Emily Fogg
Budget Analyst
622-4642
www.financialaffairs.eku.edu/budget