BUDGET MANAGEMENT TOOLS Presented by Ron Laher Vice President for - PowerPoint PPT Presentation

RMUG 2014 Laramie County Community College BUDGET MANAGEMENT TOOLS Presented by Ron Laher Vice President for Administrative Services Eastern Wyoming College 1

Introduction Laramie County Community College  Professional Experience  Eastern Wyoming College ‘13 - ?  Rosemont College ’11 - ’13  University of Delaware ’10  Eastern Wyoming College ‘98 - ’09  Central Wyoming College ‘85 - ’98  Discussion and viewpoints are encouraged and welcome RMUG 2014  Will answer questions throughout presentation 2

Overview Laramie County Community College  Biennial and Annual Planning Cycles  Colleague Budget Management  Strategic Budgeting Framework RMUG 2014 3

State Biennial Budget Cycle Laramie County Community College  College budgets receive state support funding every two years in even-year budget sessions for subsequent biennium  The support is received by the WCCC, largely in the form of a block grant  Annual allocations are made to the 7 Wyoming community colleges based RMUG 2014 on a funding model that considers size, volume, and merit (performance) 4

EWC’s Annual Budget Cycle Laramie County Community College  Student fees and charges are reviewed in October  Scholarship budgets are prepared in the fall and reviewed in January  Personnel budget adjustments are considered February-March and reviewed in April  College-wide preliminary annual RMUG 2014 budget is prepared & reviewed in May  Final budget is presented for approval in July 5

EWC’s Annual Strategic Planning Cycle Laramie County Community College  Beginning each February, all college units are encouraged to submit action plans for the upcoming annual cycle  The plans consider ways and means to further the college’s strategic directions and vital initiatives  These plans are KPI-based and are prioritized for funding within each unit RMUG 2014  Progress on prior year plans are evaluated and reported 6

Colleague Budget Management Presentation Goals Laramie County Community College  Review how Budget Management is used at EWC  Discuss benefits of using Budget Management  Look at specific processes for setting up and using Budget Management effectively  Look at reporting options RMUG 2014 7

Budget Management Calendar Laramie County Community College  January — initialize Budget Management module and produce base-line budget reports for managers to analyze and change  Load budget changes on Colleague in April/May for preliminary budget, and May/June for Final budget  Post final budget in July RMUG 2014 8

Colleague Budget Management Benefits Laramie County Community College  Comparability- prior years’ data are easily accessible from a common database  Integration-budget can be posted to Colleague General Ledger module through an automated process, which eliminates potential for data-entry errors RMUG 2014  Flexibility-reports are easily generated through Excel or CROA 9

Colleague Budget Management Benefits Laramie County Community College  Retrievable- prior years’ budget justification data is safely stored in system for future reference (be consistent in naming budgets)  Constancy- software’s features have changed very little since it became available  Simplicity-Budget Management fairly straight forward to learn and apply  Accessibility-budget information may RMUG 2014 be retrieved by other campus Colleague users 10

Important Budget Management Processes Laramie County Community College  Budget Responsibility Tree  Budget Officer Maintenance  Responsibility Creation  Building a New Budget  Displaying/Changing Budget Line Items  Budget Justification Notes  Posting Budget to General Ledger RMUG 2014  Budget Reporting 11

Responsibility Tree Laramie County Community College  A hierarchal structure for linking budget officers or managers to GL account groupings for which they are responsible (budget units) — can follow organizational chart  A preliminary task performed once with minimal amount of annual maintenance  Define budget organization on paper RMUG 2014  Enter/maintain at BU  BGR  BRSP after budget officer ID’s are established 12

Budget Officer Maintenance Laramie County Community College  Defines budget officer ID’s; links login names to budget officer ID’s for all budget units − GL  GLA  GLOM  After initial set-up, use GLOM and BU  BCA  BOFM to make changes RMUG 2014 13

Responsibility Creation Laramie County Community College  Enter budget responsibility tree; create responsibility ID’s for budget units − Essentially a template − BU  BGR  BRSP  Populate BUDACCTS file with GL account numbers as defined by BRSP − Establishes data file from template − BU  BGR  PBAF  Attach budget officers and RMUG 2014 responsibility ID’s to GL accounts in the BUDACCTS file − Completes data file − BU  BGR  BRCR 14

Building a New Budget Laramie County Community College  Create budget file parameters; administrator and responsibility tree − BU  BGC  BCID  Define a base and associated comparable fields for budget file − BU  BGC  BCDB  Create budget file suite RMUG 2014 − BU  BGC  BGFC 15

Building a New Budget Laramie County Community College  Place data in budget files, i.e., budget generation − BU  BGC  BCGB  If a new account number is added later, run each of the following again, in order: − PBAF − BRCR RMUG 2014 − BGFC − BCGB 16

Displaying/Changing Budget Line Items Laramie County Community College  BU  OWLI (or RWLI)  Change data viewed with column options  Optionally select a sub-account grouping  Make changes to Basic Amount − Dollars − Percentages RMUG 2014  Global changes 17

Budget Justification Notes Laramie County Community College  Detail on account number or Basic Amount  Select BJNS  Convention used includes assigned justification number, change amount, and a short description — or free-form, otherwise  Information cross-references more detailed paper schedules RMUG 2014 18

Posting Budget to General Ledger Laramie County Community College  Last step performed after budget is finalized  BU  BCA  PBGL  Preprocessing steps check to see if GL accounts have been established and that line items are distributed within periods  Final processing step creates opening balance budget journal entries in the GL.Postings file  Identify a GL component name to group entries RMUG 2014 (by Department is recommended)  Run poster before and after this process 19

Budget Reporting Laramie County Community College  Two CROA reports are extensively used − Budget Development Worksheet − Justification Notes  Information is stored in data file BWK.<budget name>  Excel reporting using SQL server connection to the ODS production database RMUG 2014 20

RMUG 2014 Laramie County Community College Budget Reporting 21

RMUG 2014 Laramie County Community College Budget Reporting 22

RMUG 2014 Laramie County Community College Budget Reporting 23

RMUG 2014 Laramie County Community College Budget Reporting 24

RMUG 2014 Laramie County Community College Budget Reporting 25

RMUG 2014 Laramie County Community College Budget Reporting 26

Review of Colleague Processes Initially During Cycle End of Cycle GLOM OWLI PGLT BRSP BJNS PBGL PBAF BOFM/GLOM PGLT BRCR *GLAA/GLCN BCID *PBAF BCDB *BRCR BGFC *BGFC BCGB *BCGB 27

EWC’s Strategic Budgeting Framework Laramie County Community College WHY?  Incentivizes planning and innovation  System to demonstrate evidence of strategic planning in budgeting (for accreditation)  Mechanism to distribute funding to major divisions for further reallocation  Winning qualities: altruistic, aspirational, harmonious, eudemonic, efficient, and RMUG 2014 principle-based 28

NCHEMS Perspective Laramie County Community College on Strategic Budgeting ► Strategic budgeting is an intentional connection between abstract plans and budgets (money). ► The budget is a powerful tool to implement institutional plans. ► Creativity is unleashed when positive incentives are established. ► Budgeting is a proactive mechanism for change. ► In absence of an explicit and reinforcing RMUG 2014 relationship between budgets and institutional plans, status quo will prevail. National Center for Higher Education Management Systems ( NCHEMS ) 29

NCHEMS Perspective Laramie County Community College on Strategic Budgeting (Continued) ► The Board and top leadership must try to ensure that:  Assets are sufficient and appropriate to the mission  Assets are maintained/not allowed to depreciate or become obsolete  Assets are applied to achieve mission, support strategic objectives, and respond to priorities of key constituencies RMUG 2014  The primary focus is on long-term shaping and maintenance of asset structure rather than short-term economic cost of asset National Center for Higher Education Management Systems ( NCHEMS ) 30