Welcome!
Today’s Agenda I. Introduction a. Why is Budget Construction Needed? b. Schedule and Deadlines c. Expectations d. Major Changes Review II. Hands-On Training in KBC III. Timeline for Transfers and Budget Adjustments during the year 2
Why do we need a Budget System? • Current process includes multiple spreadsheets, lacks FTE and personnel data, is cumbersome and time consuming to departments, and lack standardization across the University • UConn is a large, multi-faceted organization • Increased pressure on state funding • Multiple funding streams and complex Chart of Accounts • The Board of Trustees, Leadership and external entities require data and additional information 3
FY17 Budget Timeline January February-March April May June Units/Depts. Budget Office Budget and Budget Prepares Univ. Board of Construction Office Budget Material for Leadership Trustees Opens to Budget Office Budget Due to Reconcile Construction Univ. reviews Receives User Training Users Open Labs Budget Office Budgets Closes Leadership Budget Budget Budget Office 1st 2 Weeks 3rd Week June 13th Units/Departments Feb 3rd April 1st May 1st All Month Feb-March All Month Note- Items in Red Denote Major Unit/Department Milestones 4
User Expectations Complete Required Training Submissions • Lead BC (Budget Construction) Processor is responsible for final submission • 2-Ledger balanced • 3&4 Ledger accounts include projected fund balance • Transfer Reconciliation completed and ties to Budget Construction • Explanation of any significant variances 5
Major Changes and Key Processes Here are some of the major improvements and process changes…. What are the changes and key processes? 2-Ledger Accounts - Departments will budget for 2-Ledger accounts Fund Transfers - Fund transfers are allowed to 2-Ledger accounts Positions - Budgets will be developed by individual employees/positions Collective Bargaining Increases (CBIs) - Not budgeted in 2-Ledger accounts Fringe Benefit Rates - Budgeted rates will be set in February and not change We will start with the CBI and Fringe Process… 6
Budgeting CBIs During the Budgeting Process…when you’re working in Budget Construction 2-Ledger (University Supported OPTUI) Accounts - Departments will not include CBIs in their budget submission. Salaries and vacancies for existing positions (pre-populated from the HR/Payroll system and Position Management) will be pre-loaded at the current salary rate. Non 2-Ledger Accounts (e.g. 3, 4 and 6-Ledger Fiscal Accounts) – Departments should budget for CBIs on these accounts based on assumptions provided by the Budget Office at the start of Budget Construction. Salaries for existing positions (pre-populated from the HR/Payroll system and Position Management) will be pre-loaded at the current salary rate. During budget development, departments will add the CBI rate. Do I Budget For? 2-Ledger (University Supported OPTUI) Accounts NO Non 2-Ledger Accounts YES 7
Budgeting Fringe Benefits Budget Construction Fringe Rates for FY17 will be established and loaded into Budget Construction for users at the start of the budget process (February 3 rd ). During the Fiscal Year Rates will not change during the fiscal year, any over or (under) from the budgeted to actual fringe rate will be rolled into the following year’s (FY18) fringe rate – similar to the federal rate process, only a one year lag versus two Following Fiscal Year (FY18) Fringe Rates for FY18 will include any over/(under) from the FY17 rate. The same process will follow for FY18, Budgeted Fringe Rates will not change during the fiscal year IMPACT- No variances related to fringe rates and fewer budget adjustments!! 8
Kuali Budget Construction (KBC) We will now open the Budget Construction module and work on some examples for non 2-Ledger Accounts 9
Budgeting 2-Ledger Accounts We will now discuss budgeting for 2-Ledger (University Supported Accounts OPTUI) 10
Budgeting 2-Ledger Accounts – Transfer Object Codes 2-Ledger budget will mirror the existing process for 3&4 Ledger accounts, including the budgeting of transfers . New transfer object codes have been created: Object Code Object Code Name 3206 2Ledger Perm Transfer-In (Within Unit) 3207 2Ledger Perm Transfer-In (Outside Unit) 3208 2Ledger One-Time Trans In (Within Unit) 3209 2Ledger One-Time Trans In (Outside Unit) 3306 2Ledger Perm Transfer-Out (Within Unit) 3307 2Ledger Perm Transfer-Out (Outside Unit) 3308 2Ledger One-Time Trans Out (Within Unit) 3309 2Ledger One-Time Trans Out(Outside Unit) Let’s walk through an example of how it works… 11
Budgeting 2-Ledger Accounts – Day 1 Of Budget Construction FY17 - Budget Construction When Departments 1 st Open Budget Construction February 3, 2015 Budget Construction Permanent Funding Revenue, existing salary, fringe and base Original Pre-Population budget contractual commodities will be pre-populated. $ in thousands from Budget Office Revenue 4100 - Perm Funding $400 3207 - 2Ledger Perm Transfer-In 0 Transfers will not be pre-loaded into Budget Construction 3209 - 2Ledger One-Time Trans In 0 Total Revenue $400 Expenditure Salary Gordon, Alex 90 Wolquez, Edinson 99 TBA Positions (Positions not in HR/Payroll or Position TBA 0 Management) will not be pre-loaded into Budget Construction Total Salary $189 Fringe 150 Total Personal Services $339 Contractuals/Commodities Office Supplies 61 Microscope 0 Total Expense $400 12 Operating Surplus / (Deficit) $0
Budgeting 2-Ledger Accounts - Permanent Transfers FY17 - Budget Construction In this example the department is adding a TBA position February 3, 2015 May 1, 2015 (est.) which is being funded permanently by the Budget Office. Budget Construction Budget Construction Original Pre-Population Departments Enter and $ in thousands from Budget Office Submit The department will budget for a Permanent Funds Revenue 4100 - Perm Funding $400 $400 Transfer that is being received from another 3207 - 2Ledger Perm Transfer-In 0 115 department. In this example $115k, $75k for salary 3209 - 2Ledger One-Time Trans In 0 0 Total Revenue $400 $515 and $40k for fringe Expenditure Salary Gordon, Alex 90 90 The department will budget $75k for a new position Wolquez, Edinson 99 99 TBA 0 75 via adding a TBA position (Fringe Benefits are Total Salary $189 $264 automatically calculated by the system, in this Fringe 150 190 Total Personal Services $339 $454 example $40k) Contractuals/Commodities Office Supplies 61 61 Microscope 0 0 Total Expense $400 $515 13 Operating Surplus / (Deficit) $0 $0
Budgeting 2-Ledger Accounts - One-Time Transfers FY17 - Budget Construction In this example the department budgets for a microscope February 3, 2015 May 1, 2015 (est.) and will receive One-Time funding from the Budget Office. Budget Construction Budget Construction Original Pre-Population from Departments Enter and $ in thousands Budget Office Submit Revenue 4100 - Perm Funding $400 $400 3207 - 2Ledger Perm Transfer-In 0 115 The department will budget for a One-Time funds 3209 - 2Ledger One-Time Trans In 0 25 transfer being received from another department Total Revenue $400 $540 Expenditure Salary Gordon, Alex 90 90 Wolquez, Edinson 99 99 TBA 0 75 Total Salary $189 $264 Fringe 150 190 Total Personal Services $339 $454 Contractuals/Commodities Office Supplies 61 61 The department will budget its planned expenditure Microscope 0 25 in Contractuals and Commodities Total Expense $400 $540 14 Operating Surplus / (Deficit) $0 $0
Budgeting 2-Ledger Accounts – July 1 st view FY17 - Actual as of July 1st Including Encumbrances July 1, 2016 July 1, 2016 July 1, 2016 On July 1 st , both Base and Current Budgets Base Budget Current Budget (Fiscal Period BB) will be equal to Budget (BB - Beginning (BB - Beginning Construction $ in thousands Balance) Balance) Actuals Revenue 4100 - Perm Funding $400 $400 $400 3207 - 2Ledger Perm Transfer-In 115 115 0 Transfers have not been completed 3209 - 2Ledger One-Time Trans In 25 25 0 Total Revenue $540 $540 $400 Expenditure Salary Gordon, Alex 90 90 90 Wolquez, Edinson 99 99 99 Position has been filled at a salary of $65k, Smith, Bob 75 75 65 which is $10k less than the budget Total Salary $264 $264 $254 Fringe 190 190 185 $ 339 Total Personal Services $454 $454 $439 Contractuals/Commodities Office Supplies 61 61 61 The microscope has not yet been purchased Microscope 25 25 0 Total Expense $540 $540 $500 15 Operating Surplus / (Deficit) $0 $0 ($100)
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