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Introductions

Budget Website

Budget Allocations

Salary Planner Merit Guidelines Faculty, Staff, Pool Extracts Spring Budget Downloads

Ability to run reports for ALL extracts Fringe Benefits

Chart Change Impact Program Codes Distributed Charges Transfers

Finance Budget Development Non-Labor Budgets Activity Code budgeting Summary FOP budgeting Budget Allocation Tool Query Hierarchy Restricted Fund Budgeting Endowed Chair Budgeting

Fiscal 2014 Budget Training

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Budgeting 101 Finance Budget Development (FBD) – tool used to balance budgets and create/change non-labor,

revenue and transfer budgets Salary Planner – tool used to set job salaries and position budgets. Salary planner feeds the labor

budgets in FBD Job – represents the salary of an individual Position – represents the budget for a given role at the University. Jobs and Positions are linked, and

it is often said that, “jobs fill positions” Budget Working Group (BWG) – group that establishes high-level budget assumptions and submits

proposed budget to Board for approval Increment – % increase for salaries and benefits relative to prior year budgets Allocation – (Increments )+ (BWG Add-ons) + (any budget adjustments made in FBD) Transfer – represents funding moving from one source (Fund-Org) to another (Fund-Org) Distributed Charge – charges from one department to another unit that have been pre-approved in

the Transfer Pricing Guidelines Transfer Pricing – the practice of distributing a charge that is incurred by one unit, and subsequently

charged to another. Units require approval to implement this practice (see Transfer Pricing Guidelines)

Unrestricted Funding – funds held centrally and distributed to units as a recurring (annual) resource Restricted Funding – resources given to the University for a specific purpose (Grant, Gift,

Endowment, etc) Banner Finance – Source of FBD account line-item budgets. At the end of the spring budget process

FBD data is loaded to Banner Finance to become the budget for the next fiscal year Banner HR – source of job and position data for Salary Planner. At the end of the spring budget

process Salary Planner data is loaded to Banner HR and creates the active records for the next fiscal year.

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Budget Website

budget.nd.edu – will provide updates to campus on the B@ND process. Includes information on the following:

Campus Communications from the Budget Office

Timeline for Budget Process

Instructions• Road maps• Detailed instructions with screenshots• Position Funding Calculator• Merit Guidelines• Fringe Rates• Non-Labor budget rates• Endowed Chair Tool Instructions• Mass Allocation Worksheet

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Budget Allocations: Pre-approved increments, BWG add-ons, permanent budget adjustments after 2/13/2013.– Details available in FBD by accessing the Allocation Audit Report

Budget Allocations

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Salary Planner – Merit Guidelines

Budget growth on all positions within a budget Includes filled & open staff positions, student, contingency

and other pooled positions

Determine merit increases based on performance “Managers must assess employees’ performance for the year prior to calibrating merit for their area.”

Total dollar merit increase for staff may not exceed total allocated budget and must abide by the merit matrix Use market reference range to gauge an individual’s merit

increase

No communication of merit increase to employee until budgets are approved and confirmation email sent from HR Compensation

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FY14 Matrix Non-Exempt & Exempt Staff

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Salary Planner Screens

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Salary Planner Screens

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Things Departments/Divisions need to do:

Make sure increases meet merit and allocation guidelines Notify Provost when faculty data is ready for auditing (if prior to

4/12) Complete Performance Reviews by 5/15 Run Spring Budget Downloads throughout the process Notify HR when staff data is ready for auditing (if prior to 5/22)

Things Provost will do: Review faculty increase data

Things HR & Budget will do: Run analysis on data to confirm compliance Respond to any questions

Salary Planner Audits

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Lump Sums / Student Compensation

Lump Sums Zero dollars entered in Salary Planner Put a note in Salary Planner Comment for employee Allocate dollars and fringe to Contingency Account Complete Additional Pay for Services form Submit Form to HR on or before June 1

Student Compensation Recommended rates for FY14 May use those rates prior to 7/1 Your budget dollars must support

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Salary Planner Audits

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Salary Planner Audits

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Salary Planner Audits

Information will auto populate as FY13 reviews

are completed

Current information from Salary Planner

Current information from Banner HR

 

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3 Extracts for Salary Planner Faculty open 3/8 – 4/12 (FY14 FACULTY SALARIES) Pools open 3/8 – 5/22 (FY14 POOLED POSITIONS) Staff open 4/15 – 5/22 (FY14 STAFF SALARIES)

Salary Planner will feed salary changes in “real-time” to Finance Budget Development

FBD Fringe benefits will be re-calculated hourly based on changes saved in Salary Planner

Automatic update of Job Salary to Position Budget function reduces number of steps and errors

Salary Planner

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Salary Planner “Roadmap”

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Fringe Benefits

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Chart Change Impact Program Codes

– 2 digit codes to be mapped to 5 digits (Controller’s Office website)– Limited funds using multiple program codes (FOP Lookup – InsideND)– New program codes processed through the Controller’s Office

Distributed Charges & Cost Share– No longer using 76010 (Distributed Charges)

– 69011 (Payroll Distributed Charges) will still be available– 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)

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Finance Budget Development

Three tools provided in FBD:

1. Budget Worksheet: Balance budgets at FOP (Org level 8) detail.

• Adjust Non-Labor budgets

• Includes Activity codes in Summary section

• Audit detail provides increased transparency

2. Budget Query: Balance budgets using hierarchy. Allows user to

drill down to find variances.

3. Budget Allocation Tool: Make permanent budget adjustments

between FOPs to ensure allow budgets balance to zero

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FBD Road Map

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FBD Road Map

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Restricted Fund Budgeting

Optional for units, but highly recommended for units that rely heavily on these resources to fund their ongoing needs

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

Use revenue account code 50000 (Beginning Balance Roll-Over) to budget “beginning balance” for funds rolling over from FY13 to FY14

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

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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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Website http://budget.nd.edu

Contact Information Budget Office, Logan Anderson, 631-7132

Office of Human Resources, Theresa Dockery, 631-7894

Questions?