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Spring Budget Process (SBP) Timeline

Benefits

Suggestions

Budgeting in Finance Budget Development– Revenue– Labor– Non Labor– Transfers

Chart Change Impact

Estimated Endowment Income Calculation

Appearance of budgets in GLez

Next Steps

Restricted Budgeting

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SBP Timeline

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Restricted funding becoming a larger portion of overall University resources– Education & General: 43%– Auxiliary: 16%– Restricted: 39%– Other: 2%

Increased transparency

Better planning

Better reporting

A step towards All Resource Planning (ARP)– ARP at Notre Dame is an approach to multi-year financial planning and management. 

The University plans to identify and implement (or internally develop) a robust planning and budgeting system that enables budget managers to view all of their available funding sources, and understand the restrictions placed on each.  They would also see the costs of their highest priority uses over multiple years, past and future.  The system would allow them to plan the allocation of their resources to support their programmatic responsibilities directly and transparently. 

Benefits

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Unlike Unrestricted budgeting, no allocation that requires balancing

Suggest budgeting to net zero, or positive (reflecting rollover funds to the following year).

For funds in deficit, use transfer codes to represent funding transfers– If a budget has a negative net budget (deficit), and no funding

source is known at the time of budget, then leave as is

First time budgets will start from scratch, but roll forward to future years

Security considerations for granting FBD access to small units

Budget adjustments after July 1st

Suggestions

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Revenue– Endowment Income (55202)– Gifts (59009)– Balance Rollover (50000)– University Contribution (54900)

Labor– Fed directly from Salary Planner

Non Labor– Supplies– Travel

Transfers

Resources

– Expense Account Codes: http://controller.nd.edu/assets/86987/account.pdf– Revenue Account Codes: http://

controller.nd.edu/assets/93869/revenue_account_codes.pdf

Budgeting in Finance Budget Development

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Program Codes– Minimal changes for FY14– 2 digit codes to be mapped to 5 digits– Limited funds using multiple program codes– New program codes processed through the Controller’s Office

Distributed Charges & Cost Share– No longer using 76010 (Distributed Charges)– No longer using 72121 (Cost Sharing)– No longer using 54900 (University Contribution)– No longer using 81070 (Transfers-University)

Approved Distributed Charge Hierarchy which matches Transfer Pricing guidelines

Utilize Transfers for movement of Funding– 81071 – Funding Transfer-Out (debit)– 81072 – Funding Transfer-In (credit)

Chart Change Impact

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Definition of Estimate – “A close guess of the actual value, usually with some thought or calculation involved”

Calculation

FY14 Earnings Estimate = FY12 Actual Earnings * 1.03 * 1.03

* an exception is Endowed Chairs which will have a more precise estimate provided by Budget

Does NOT account for the following:

– Endowments turned On/Off spending during FY12 or FY13– Endowments that have received new gifts– Endowments that have been split (usually Endowed Chairs)– Endowments that have transferred funding In/Out

Endowment Funding Calculator

Please review your endowment income estimates for accuracy– You have more information on these funding sources– You have the ability to change the estimates in FBD

Estimated Endowment Income

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Budgets will appear in Glez

– Under “Budgeted Restricted” tab

Budgets in GLez

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FBD Security

Attend SBP training in March/April

FBD closes 6/7

B@ND Survey

Follow-up focus group after budget process to get budgeting feedback

Follow-up focus group in December 2013 to get reporting feedback

B@ND FY15 – create document of best practices for restricted fund budgeting

Next Steps