Audience: ◦ Department chairs and coordinators

Content: ◦ College budgetary reporting

Overview: ◦ Budget projections are submitted using a “MBU

Rev-Exp” spreadsheet◦ A review of the MBU spreadsheet follows

CAHSS Budget Presentation

December 8, 2011CAHSS budget presentation to department chairs & coordinators by Gina Pierce, Budget Analyst

◦What it is

◦Why we complete it

◦Where the data comes from

◦What it contains

◦How often we update it

MBU Rev-Exp Spreadsheet :

What is it?

Why complete it?

Who uses it?

A spreadsheet designed for OAA use, required by the provost

To allow for consistent reporting by all Major Business Units (MBU)

OAA uses it to track and project budget & expenditures; it is a ‘thermometer’ of our budget position

Keeping it simple….

Brief Summary

What it contains:

How often updated:

Revenue (Budget) and Expense projections reported in various broad categories

First draft is reported in January of the prior academic year. Updated in October, March, May, with final after the year closes.

Brief Summary continued…

Consists of column headings for:

Salaries◦ Perm faculty & DC◦ FERP◦ Lecturers◦ TA’s◦ GA’s◦ Staff◦ MPP’s◦ Student Assistants◦ Work Study

Total Salaries Benefits OE

◦ Communications◦ Travel◦ Library Acquisition◦ Contract Services◦ Info Tech Costs◦ Equipment◦ Misc OE◦ Total OE

Total

Format of the Spreadsheet

Original Budget Allocations Roll Forward Budget Reductions Salary & Benefit Increases Encumbrance Budgets Readjustment of Allocations Reimbursements Augmentations R/RS Revenue Vacant Position Transfers

Page 1…

Spreadsheet Revenue Categories

Major categories:◦ Department/Program Expenses◦ R/RS Expenses◦ Contingencies◦ Cost Recovery

Last row contains the balances of all categories (revenue – expense)

Page 2…

Spreadsheet Expense Categories

Original Budget Allocation◦ Information is distributed from the budget office

to the director of academic resources, who forwards to the divisional budget analysts

◦ Divided into various salary, benefits, and OE categories

◦ Includes changes to position inventory, benefits, shifts in departments

◦ This is our base budget allocation

Step-by-step review

Revenue

Roll Forward:◦ Distributed from the University Budget Office

◦ Excess budget approved by the provost or overspent budget balances are ‘rolled’ into the next academic year

◦ NOTE: Excess budget is often scooped and not guaranteed to roll

◦ Overspending results in offset against next academic year’s budget

Step-by-step reviewRevenue

Budget Reductions◦ If budget reduction to base were required, this

line would show which categories were affected by the reduction

◦ Types of reductions: Reduction to base budget. This line is for reductions

that have not yet been applied to base budget but are expected.

Examples for 2011/12: reduction for TFD’s Graduate program phase out and reduction due to ITS reorganization.

Step-by-step review

Revenue

Salary & Benefit Increases:

◦ Examples: Funding for faculty promotions

FERP settlement pay-outs

Step-by-step review

Revenue

Encumbrance Budget:◦ Distributed from the University Budget Office

◦ Encumbrances are unfilled orders – i.e.: a purchase requisition was placed in the prior year and not yet expensed.

◦ The encumbrances move the budget forward; they will count against prior years budget when they post

Step-by-step review

Revenue

Readjustment of Allocations◦ This line is used to move budget between

categories so there is enough budget to cover projected expenses by category.

◦ Examples: Move funds from faculty funding to cover chair

stipend costs (moves from faculty to staff)

Move Supplies & Services budget to cover communications, student assistant, equipment (computer refresh), travel

Step-by-step review

Revenue

Reimbursements◦ Specific types of expected revenue listed in this

section.

◦ Information comes from the OAA, other college offices, and department coordinators (the assigned time information)

◦ Categories include: Faculty Governance Sabbaticals CMC Release Time CFA Representation; Statewide Senate representation Other Colleges reimbursement for use of our faculty

Step-by-step review

Revenue

Augmentations◦ Funding from the president or provost that is given

on a one-time basis to supplement the base budget

◦ Examples: TFD Graduate program. In 2011/12 a reduction to

base budget of $134,000 was taken due to program reduction. To help with the program phase-out year, a $134,000 augment from the provost was provided.

First Street Gallery receives a $24,000 augment to its base budget.

Step-by-step review

Revenue

R/RS Revenue◦ This section shows projected revenue fee

programs; various R and RS program codes

◦ In mid-year updates we use it to show: GWPE: projected earnings above base budget

MSF: projected revenue above base budget

◦ In the year-end budget update, actual R/RS Revenue is reflected in this section (since actual revenue is known at year-end)

Step-by-step review

Revenue

Vacant Position Transfers◦ Changes to positions that are not accurately

reflected in the position inventory.

◦ Examples: New faculty: OAA funds difference between vacant

rate salary & benefit funding and new faculty rate

New FERP Faculty: Half of the faculty’s position funding moves to vacant rate; OAA scoops difference between the half-time faculty rate and vacant rate.

Step-by-step review

Revenue

Cost Recovery◦ This line is used to show revenue from grants and

contracts

◦ Information about grants and contracts should come to the College office

◦ For 2011/12, cost recovery from two grants are reflected in this section

Step-by-step review

Revenue

Department/Program Expenses◦ This information is compiled in the college office

from various sources Salary & Benefit projections: scheduling worksheets,

position inventory data, & other material are referenced when projecting per department expenses

Departmental OE expense projection includes encumbrance & roll forward budgets and is based on several factors, including: Current budget allocation Historical costs Projected costs

Step-by-step review

Expense

R/RS Expenses◦ This information comes from the college office

◦ During yearly updates, this section projects mainly: GWPE (RS002) expenditures

MSF Fee expenditures (RS064)

Expenditures equal to all other R/RS balances

◦ During year-end updates, this sections includes ALL R/RS codes and the expenditures equal account balances. Since R/RS balances will roll, for the purposes of this report they are considered

expended so that their balance will not affect our bottom line projection.

Step-by-step review

Expense

Contingencies◦ We use this section to report:

Reserve budget:$80,000 To help curb historical deficit spending

Sick Leave Replacement budget: $75,000 As funds are committed, the cost is reflected in the

department expenses Dean’s Discretionary budget: $30,000

As funds are committed, the cost is reflected in the department expenses

Step-by-step review

Expense

Cost Recovery ◦ This line is used to show revenue from grants and

contracts as abatements (negative expenses)

◦ When a grant is billed, the revenue is posted as an abatement to offset the cost of the faculty

◦ This section is not used in this spreadsheet.

Step-by-step review

Expense

The final row on the spreadsheet is “balance” This row subtracts projected expenses from

projected revenue per category The far right column, “Total,” reflects any projected

excess or deficit as a result of the proposed budget NOTE that benefit costs are not the college’s

responsibility to cover; therefore any excess or deficit in the benefit category should be removed from the total.

Step-by-step review

Balance

Budget Reporting Is required by the Provost Uses MBU spreadsheet which allows for

consistent reporting by divisions Is used as a ‘thermometer’ of our budget

position Reports revenue & expenditures by

category Is updated about 4 times per year

Ending Summary