Welcome! Todays Agenda I. Introduction a. Why is Budget - - PowerPoint PPT Presentation

Welcome!

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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

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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

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FY17 Budget Timeline

Note- Items in Red Denote Major Unit/Department Milestones

January June User Training Budget Construction Opens to Users Budget Office Open Labs Budget Due to Budget Office Units/Depts. and Budget Office Reconcile Budgets Budget Construction Closes Budget Office Prepares Material for Univ. Leadership Univ. Leadership reviews Budget Board of Trustees Receives Budget Budget Office 1st 2 Weeks 3rd Week June 13th Units/Departments Feb 3rd April 1st May 1st February-March April May All Month All Month Feb-March

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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

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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…

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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

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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 3rd). 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!!

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Kuali Budget Construction (KBC)

We will now open the Budget Construction module and work on some examples for non 2-Ledger Accounts

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Budgeting 2-Ledger Accounts

We will now discuss budgeting for 2-Ledger (University Supported Accounts OPTUI)

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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: Let’s walk through an example of how it works… 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)

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Budgeting 2-Ledger Accounts – Day 1 Of Budget Construction

Transfers will not be pre-loaded into Budget Construction TBA Positions (Positions not in HR/Payroll or Position Management) will not be pre-loaded into Budget Construction

FY17 - Budget Construction February 3, 2015 $ in thousands Budget Construction Original Pre-Population from Budget Office Revenue 4100 - Perm Funding $400 3207 - 2Ledger Perm Transfer-In 3209 - 2Ledger One-Time Trans In Total Revenue $400 Expenditure Salary Gordon, Alex 90 Wolquez, Edinson 99 TBA Total Salary $189 Fringe 150 Total Personal Services $339 Contractuals/Commodities Office Supplies 61 Microscope Total Expense $400 Operating Surplus / (Deficit) $0

When Departments 1st Open Budget Construction Permanent Funding Revenue, existing salary, fringe and base budget contractual commodities will be pre-populated.

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Budgeting 2-Ledger Accounts - Permanent Transfers

In this example the department is adding a TBA position which is being funded permanently by the Budget Office. The department will budget for a Permanent Funds Transfer that is being received from another

• department. In this example $115k, $75k for salary

and $40k for fringe The department will budget $75k for a new position via adding a TBA position (Fringe Benefits are automatically calculated by the system, in this example $40k)

February 3, 2015 May 1, 2015 (est.) $ in thousands Budget Construction Original Pre-Population from Budget Office Budget Construction Departments Enter and Submit Revenue 4100 - Perm Funding $400 $400 3207 - 2Ledger Perm Transfer-In 115 3209 - 2Ledger One-Time Trans In Total Revenue $400 $515 Expenditure Salary Gordon, Alex 90 90 Wolquez, Edinson 99 99 TBA 75 Total Salary $189 $264 Fringe 150 190 Total Personal Services $339 $454 Contractuals/Commodities Office Supplies 61 61 Microscope Total Expense $400 $515 Operating Surplus / (Deficit) $0 $0 FY17 - Budget Construction

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Budgeting 2-Ledger Accounts - One-Time Transfers

In this example the department budgets for a microscope and will receive One-Time funding from the Budget Office. The department will budget for a One-Time funds transfer being received from another department The department will budget its planned expenditure in Contractuals and Commodities

February 3, 2015 May 1, 2015 (est.) $ in thousands Budget Construction Original Pre-Population from Budget Office Budget Construction Departments Enter and Submit Revenue 4100 - Perm Funding $400 $400 3207 - 2Ledger Perm Transfer-In 115 3209 - 2Ledger One-Time Trans In 25 Total Revenue $400 $540 Expenditure Salary Gordon, Alex 90 90 Wolquez, Edinson 99 99 TBA 75 Total Salary $189 $264 Fringe 150 190 Total Personal Services $339 $454 Contractuals/Commodities Office Supplies 61 61 Microscope 25 Total Expense $400 $540 Operating Surplus / (Deficit) $0 $0 FY17 - Budget Construction

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Budgeting 2-Ledger Accounts – July 1st view

On July 1st, both Base and Current Budgets (Fiscal Period BB) will be equal to Budget Construction Transfers have not been completed The microscope has not yet been purchased Position has been filled at a salary of $65k, which is $10k less than the budget

July 1, 2016 July 1, 2016 July 1, 2016 $ in thousands Base Budget

(BB - Beginning Balance)

Current Budget

(BB - Beginning Balance)

Actuals Revenue 4100 - Perm Funding $400 $400 $400 3207 - 2Ledger Perm Transfer-In 115 115 3209 - 2Ledger One-Time Trans In 25 25 Total Revenue $540 $540 $400 Expenditure Salary Gordon, Alex 90 90 90 Wolquez, Edinson 99 99 99 Smith, Bob 75 75 65 Total Salary $264 $264 $254 Fringe 190 190 185 $ 339 Total Personal Services $454 $454 $439 Contractuals/Commodities Office Supplies 61 61 61 Microscope 25 25 Total Expense $540 $540 $500 Operating Surplus / (Deficit) $0 $0 ($100) FY17 - Actual as of July 1st Including Encumbrances

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Budgeting 2-Ledger Accounts – June 30th View

Departments can update both Base and Current Budgets (we will discuss this in detail later) Transfers are complete The microscope has been purchased

June 30, 2017 June 30, 2017 June 30, 2017 $ in thousands Base Budget (Fiscal Periods 1-13) Current Budget (Fiscal Periods 1-13) Actuals Revenue 4100 - Perm Funding $400 $400 $400 3207 - 2Ledger Perm Transfer-In 115 100 100 3209 - 2Ledger One-Time Trans In 25 25 25 Total Revenue $540 $525 $525 Expenditure Salary Gordon, Alex 90 90 90 Wolquez, Edinson 99 99 99 Smith, Bob 75 65 65 Total Salary $264 $254 $254 Fringe 190 185 185 $319 $319 Total Personal Services $454 $439 $439 Contractuals/Commodities Office Supplies 61 61 61 Microscope 25 25 25 Total Expense $540 $525 $525 Operating Surplus / (Deficit) $0 $0 $0 FY17 - Actual as of June 30th

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Budgeting 2-Ledger Accounts – Looking Forward

FY17 Actual Permanent Funding and Permanent Transfers will become FY18 Base Budget The $100k budgeted for Permanent funds transfers will be added to the $400k Permanent Funding line and will be pre-populated in the next Budget Construction cycle in FY18

FY17 - Actuals FY18 January 31, 2017 February 3, 2017 $ in thousands Actuals Budget Construction Original Pre- Population Revenue 4100 - Perm Funding $400 $500 3207 - 2Ledger Perm Transfer-In 100 3209 - 2Ledger One-Time Trans In 25 Total Revenue $525 $500 Expenditure Salary Gordon, Alex 90 90 Wolquez, Edinson 99 99 Smith, Bob 65 65 Total Salary $254 $254 Fringe 185 185 $319 Total Personal Services $439 $439 Contractuals/Commodities Office Supplies 61 61 Microscope 25 25 Total Expense $525 $525 Operating Surplus / (Deficit) $0 ($25)

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Budgeting 2-Ledger Accounts

Now that we have an understanding of the 2-Ledger Budgeting Process, let review in KBC how transfers work.

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Transactions During the Fiscal Year

Now that we have a foundation for budgeting 2-Ledger accounts, lets highlight CBIs and when departments can complete transfers and in what document type

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CBIs During the Fiscal Year

What happens during the fiscal year Labor Ledger On July 1, salary budget information from Budget Construction will be loaded into KFS at the position level. For 2-Ledger Accounts these salaries will not include CBIs but for Non 2- Ledger Accounts CBIs will be included. This mirrors data in Budget Construction. General Ledger At the time when CBI’s are effective by bargaining unit (UCPEA – July, AAUP – August, Management-TBD, etc.) the Budget Office will transfer permanent funds to departmental 2-Ledger accounts to reflect CBI increases and update the current budget. This will allow for the actual amount to be show for reporting purposes.

21 Document Type = Transfer of Funds (TF) 1X Only Transfer of Funds (TF) Permanent Budget Adjustment (BA) Budget Adjustment (BA) Balance Type = AC (Actual) AC (Actual) BB (Base Budget) CB (Current Budget) Fiscal Period BB July 1 - Load From BC X X Loaded from BC; CBI Loaded from BC; CBI 1 July Departments CBIs & Departments Departments Departments 2 August Departments CBIs & Departments Departments Departments 3 September Departments Departments Departments Departments 4 October Departments Departments Departments Departments 5 November Departments Departments Departments Departments 6 December Departments Departments Departments Departments 7 January Departments CBIs & Departments Departments Departments 8 February Departments X X Departments 9 March Departments X X Departments 10 April Departments X X Departments 11 May Departments X X Departments 12 June Departments X X Departments 13 July/August Accounting Office X X Budget Office

Below is a summary to help understand which (Fiscal Period) and what (Document Type) to use when completing budget related transactions…