1 2011-12 budget kick-off. 2 budget overview uva’s budget approach uva’s budget development...
TRANSCRIPT
1
2011-12 Budget Kick-Off
2
Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
4
Three Primary Budgeting Approaches
• Targeted Budgeting
• Sales and Services Budgeting
• Summary Budgeting
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Targeted Budgeting• State general (SG), state restricted (SR), local general (LG), F&A
institutional (FI), endowment institutional (EI), and gift institutional (DI)
• UBO provides budget target and modifies it for salary increases, fringe
benefit changes, addenda, and budget reductions
• Central covers costs for facilities and central administration
• Unit manages internal allocation of budget, hiring, carryforward, and
operational decisions
• Central oversight is by UBO and budget entry is required in the Integrated
System
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Sales & Services Budgeting• State sales and services (SS), state auxiliaries (SA), local sales and services
(LS), local auxiliaries (LA), and local other (LO)
• Revenue-generating, self-supporting unit approach
• Unit manages revenues and direct expenses (salary and fringe changes)
• Cost for facilities and central administration responsibility varies:
– 100% facilities and indirect costs paid by auxiliaries
– 100% facilities and 10% revenue tax assessed to self-sufficient
– 10%-15% revenue tax assessed to some self-supporting units
– No facilities or indirect costs assessed to other sales and service units
• Central oversight is by UBO and budget entry is required in the
Integrated System
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Summary Budgeting• Endowments (ER, EU, EF), gifts (DR, DU), F&A (FA), grants (G*, Z*),
and intellectual property (IP)
• Unit manages direct expenses (salary and fringe changes)
• Central covers cost of facilities and central administration, with the
exception of grants (reimbursed by federal gov’t)
• Allocations are managed by Comptroller’s Office, Gift Accounting,
Sponsored Programs and the VP for Research
• Summary budgets (not uploaded to IS) are submitted to the UBO
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
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Budget Development Cycle
Dec: University Budget Office (UBO) develops budget instructions, assumptions, and targets
UBO estimates unavoidable cost increases (salaries, benefits, utilities, AccessUVa, etc.)MBUs submit special session tuition requests to UBO
Jan: UBO holds budget kick-off and issues budget targets to EVPsEVPs distribute budget targets, instructions, and due datesUBO watches developments in state budgetUBO communicates institutional graduate aid
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Budget Development Cycle
Feb: Major Budget Units (MBUs) develop budget details
MBUs submit other fee and tuition requests
MBUs submit research and private spending estimates
MBUs develop and prioritize addenda requests
VPs hold budget meetings with MBUs
Board approves budget assumptions, special session tuition
Mar: VPs continue budget meetings with MBUs
VPs approve budgets and prioritize addenda requests
UBO finalizes tuition proposal
Apr 1: All budget submission items due to UBO
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Apr: Board approves tuition and fees; dining rates
UBO reviews budgets and prioritized addenda requests
UBO identifies available resources for addenda requests
UBO recommends preliminary addenda allocations
Senior administration finalizes addenda decisions
May: UBO finalizes Budget Summary
June: Board approves Budget Summary
UBO communicates budget and addenda decisions to EVPs
Jul 1: UBO loads GA and GL budgets into Integrated System
Budget Development Cycle
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
University of Virginia 2010-2011 Operating Budget
(in millions)
Academic Division $ 1,326.7
Medical Center $ 1,020.6
College at Wise $ 34.4
Total $ 2,381.7
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Major Funding Sources 2010-11Academic Division - $1.33 Billion
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Major Spending Areas 2010-11Academic Division - $1.33 Billion
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
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2011-12 Critical Issues
• State Budget Reductions
• Other State Actions
• Salary and Fringe Assumptions
• Endowment Distribution
• New Budget Model Development
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State Budget Reductions
• Oct 2007 – $ 9.2 mill = 3.0% SG impact
• Oct 2008 – $10.6 mill = 3.0% SG impact
• Jul 2009 – $12.4 mill = 3.2% SG impact
• Jul 2010 – $4.6 mill = 2.5% - 3.0% SG impact
• Jul 2011 - $14.7 mill = 2.5% - 3.0% SG impact
Cumulative: $51.5 million = 14-15% SG impact
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State Budget Situation
• $23 million in stimulus funds in 2010-11 used for one-
time items…do not need to replace in 2011-12
• $14.7+ million GF budget reduction in 2011-12
• So far, no further eminent scholar reduction
• No end (yet) to the ETF and maintenance reserve freeze
• No end to reversion of auxiliary cash balances and
savings from retirement plan changes
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Governor McDonnell Salary/Retirement Proposals
• VRS employees – 3% salary increase and 5% required
employee contribution, 7/1/2011
• ORP employees – no salary increase, 2% decrease in
employer contribution, 7/1/2011
• Potential for 2%, one-time December 2011 bonus for all
• To the unit: potential savings in fringes offset by
increased compensation costs = could be a net zero
impact
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Fringe Benefits
• Projected fringe benefit rates, increased for healthcare
but before 2011 General Assembly changes:
– FT Faculty and Staff-Executive: 29.0%
– FT Staff: 33.5%
– PT w/ benefits: 29.5%
– PT w/out benefits, wages: 6.0%
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Endowment Distribution
• Policy: 4%-6% of endowment value, with a 5% target
• 2010-11 was within policy target, so increased by an
inflationary percentage to $242.24/share
– To be distributed January 2011 and June 2011
• Since June, endowment is up 10%; if this holds, expect
an inflationary increase again for 2011-12
– To be distributed January 2012 and June 2012
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New Budget Model Development
• Top priority of President Sullivan
• New budget model
– Comprehensive
– Encourage stewardship of resources
– Be transparent in decision-making
– Provide incentive-based execution
• Upcoming actions will identify a steering committee, establish
working groups, and develop timeline
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
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Submission Requirements
• Budget Submission Narrative
– Include summary of the impact of the new budget reductions
• Tuition and Fee Increases
• Integrated System Budget Detail Entry
– New requirement to budget LS and LO activity
• Planned Expenditures from Selected Fund Sources
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Discoverer Reports to Review
• WEB Target Development Report
• WEB Budget Development Report
– GL and GA Budget Comparison
• GL_Cash Balance Summary by Org
– Operational Cash Balance Summary
– Non-operational Cash Balance Summary
• GL_Revenue Reconciliation Report
– Cash Balance by Project
• WEB Selected Financial Data
– 6) Summary-All Award Types
– 8) Expenditure Detail-All Award Types
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Websites to Consult• Governor’s Proposal on Retirement:
http://www.hr.virginia.edu/news-events/news/gov-proposal/
• Human Resources Fringe Benefit Summary:
http://www.hr.virginia.edu/other-hr-services/payroll-information/fringe-rates/
• UVIMCO Investment Reports:
http://uvm-web.eservices.virginia.edu/public/reports/
• F&A Distribution Report:
http://www.virginia.edu/finance/finanalysis/overhead.html
• Long-Term Pool Market Value Report:
http://www.virginia.edu/finance/finanalysis/invest.html
• State Governmental Relations Analysis of State Budget:
http://www.virginia.edu/governmentalrelations/reports.html
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Submission Requirements
• Addenda Requests
– Unavoidable increases must be top priority!
• Capital Reserve Projections
• Annual Renovation and Infrastructure Projects (ARIP)
• Budget Checklist
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Budget Overview
• UVa’s Budget Approach
• UVa’s Budget Development Cycle
• 2010-11 Approved Budget
• 2011-12 Critical Issues
• 2011-12 Budget Submission Requirements
• 2011-12 Due Dates
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Provost Office Thoughts
• 2011-12 Due Dates
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UBO Contact Information• University Budget Office
– 434-924-3386– [email protected]– http://www.virginia.edu/budget/– Who Do I Contact? page: http://www.virginia.edu/budget/Docs/Who
%20Should%20I%20Contact.pdf
• Melody Bianchetto, Assistant VP for Budget and Financial Planning, [email protected], 434-924-0994
• Keith Carter, Budget Analyst, [email protected], 434-924-3969
• Melissa Clarke, Associate Budget Director, [email protected], 434-924-0992
• Robbyn Minnis, Budget Manager, [email protected], 434-924-0990
• Rob Neil, Sr. Budget Analyst, [email protected], 434-924-3907
• Tracy Plunkett, Budget Manager, [email protected], 434-924-0027
• Judy Rowe, Budget Manager, [email protected], 434-924-7085
• Bev Smart, Budget Manager, [email protected], 434-243-0417