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

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

May 06, 2023 460 likes •844 views

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

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RMUG 2014 Laramie County Community College

BUDGET MANAGEMENT TOOLS Presented by Ron Laher

Vice President for Administrative Services

Eastern Wyoming College

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RMUG 2014 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

  • Will answer questions throughout

presentation Introduction

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RMUG 2014 Laramie County Community College

  • Biennial and Annual Planning Cycles
  • Colleague Budget Management
  • Strategic Budgeting Framework

Overview

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  • 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

  • n a funding model that considers size,

volume, and merit (performance) State Biennial Budget Cycle

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RMUG 2014 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

budget is prepared & reviewed in May

  • Final budget is presented for approval

in July EWC’s Annual Budget Cycle

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  • 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

  • Progress on prior year plans are

evaluated and reported EWC’s Annual Strategic Planning Cycle

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Colleague Budget Management Presentation Goals

  • 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
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Budget Management Calendar

  • 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
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Colleague Budget Management Benefits

  • 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

  • Flexibility-reports are easily generated

through Excel or CROA

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Colleague Budget Management Benefits

  • 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

be retrieved by other campus Colleague users

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Important Budget Management Processes

  • 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
  • Budget Reporting
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Responsibility Tree

  • A hierarchal structure for linking

budget officers or managers to GL account groupings for which they are responsible (budget units)—can follow

  • rganizational chart
  • A preliminary task performed once

with minimal amount of annual maintenance

  • Define budget organization on paper
  • Enter/maintain at BUBGRBRSP

after budget officer ID’s are established

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Budget Officer Maintenance

  • 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

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Responsibility Creation

  • 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

responsibility ID’s to GL accounts in the BUDACCTS file

− Completes data file − BUBGRBRCR

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Building a New Budget

  • 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

− BUBGCBGFC

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Building a New Budget

  • 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 − BGFC − BCGB

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Displaying/Changing Budget Line Items

  • BUOWLI (or RWLI)
  • Change data viewed with column
  • ptions
  • Optionally select a sub-account

grouping

  • Make changes to Basic Amount

− Dollars − Percentages

  • Global changes
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Budget Justification Notes

  • Detail on account number or Basic

Amount

  • Select BJNS
  • Convention used includes assigned

justification number, change amount, and a short description—or free-form,

  • therwise
  • Information cross-references more

detailed paper schedules

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Posting Budget to General Ledger

  • 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

(by Department is recommended)

  • Run poster before and after this process
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Budget Reporting

  • 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

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Budget Reporting

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Budget Reporting

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Budget Reporting

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Budget Reporting

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Budget Reporting

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Budget Reporting

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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

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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 principle-based

EWC’s Strategic Budgeting Framework

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NCHEMS Perspective

  • n Strategic Budgeting

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► 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

relationship between budgets and institutional plans, status quo will prevail.

National Center for Higher Education Management Systems (NCHEMS)

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NCHEMS Perspective

  • n Strategic Budgeting (Continued)

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► 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

  • f key constituencies
  • 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)

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NCHEMS Basic Strategic Budgeting Components

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1. A base/continuing budget constructed after the following components are established. 2. Strategic initiatives and innovation resource pool. 3. Funding for asset creation/deletion. 4. Resources for asset maintenance. 5. Funds set aside for contingencies.

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EWC’s Strategic Budgeting Process

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► Determine resources available to

accomplish strategic directions and

  • bjectives.

► Distinctly consider both one-time and

continuing sources.

► Ensure that fixed cost increases and

adequate Board Reserves are covered before determining the amount of funds to be set aside and distributed.

► Distribute funding annually to the seven

major functional areas through an established formula.

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Allocation of Resources (Hierarchy)

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INSTITUTIONAL LEVEL: FIXED COST INCREASES INSTITUTIONAL LEVEL: STRATEGIC DIRECTIONS DEPARTMENTAL LEVEL: STRATEGIC OBJECTIVES (by established formula)

  • 1. Trustees/President’s Office
  • 2. Learning
  • 3. Student Services
  • 4. College Relations
  • 5. Administrative Services
  • 6. Institutional Effectiveness
  • 7. Institutional Development
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EWC’s Strategic Directions

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Strategic Direction # 1 - Thoughtfully prepare our organization and our people for changing and dynamic times. Strategic Direction # 2 - Promote high quality, accessible learning experiences through responsive programs of distinction aligned with current & future opportunities. Strategic Direction # 3 - Embrace and invest in technology and modern facilities. Strategic Direction # 4 - Enhance the quality of life for individuals, families, the community and region, and positively influence the economy. Strategic Direction # 5 - Recognize and extend our global reach.

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Formula Distribution

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► Allocates 40% of available resources on a straight-

line basis (fixed distribution).

► Allocates 30% of available resources based on

number of employees in major functional area (variable distribution).

► Allocates 30% of available resources based on

prior fiscal year expenditures (variable distribution).

► One-time and continuing resources calculated

separately.

► Future distributions shall recognize successful

implementation of strategic objectives.

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Application of Strategic Funding

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Any Questions? Ron.Laher@ewc.wy.edu Questions

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