1 Spring Budget Process (SBP) Timeline Benefits Suggestions Budgeting in Finance Budget...
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Transcript of 1 Spring Budget Process (SBP) Timeline Benefits Suggestions Budgeting in Finance Budget...
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Spring Budget Process (SBP) Timeline
Benefits
Suggestions
Budgeting in Finance Budget Development– Revenue– Labor– Non Labor– Transfers
Chart Change Impact
Estimated Endowment Income Calculation
Appearance of budgets in GLez
Next Steps
Restricted Budgeting
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Restricted funding becoming a larger portion of overall University resources– Education & General: 43%– Auxiliary: 16%– Restricted: 39%– Other: 2%
Increased transparency
Better planning
Better reporting
A step towards All Resource Planning (ARP)– ARP at Notre Dame is an approach to multi-year financial planning and management.
The University plans to identify and implement (or internally develop) a robust planning and budgeting system that enables budget managers to view all of their available funding sources, and understand the restrictions placed on each. They would also see the costs of their highest priority uses over multiple years, past and future. The system would allow them to plan the allocation of their resources to support their programmatic responsibilities directly and transparently.
Benefits
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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
First time budgets will start from scratch, but roll forward to future years
Security considerations for granting FBD access to small units
Budget adjustments after July 1st
Suggestions
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Revenue– Endowment Income (55202)– Gifts (59009)– Balance Rollover (50000)– University Contribution (54900)
Labor– Fed directly from Salary Planner
Non Labor– Supplies– Travel
Transfers
Resources
– Expense Account Codes: http://controller.nd.edu/assets/86987/account.pdf– Revenue Account Codes: http://
controller.nd.edu/assets/93869/revenue_account_codes.pdf
Budgeting in Finance Budget Development
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Program Codes– Minimal changes for FY14– 2 digit codes to be mapped to 5 digits– Limited funds using multiple program codes– New program codes processed through the Controller’s Office
Distributed Charges & Cost Share– No longer using 76010 (Distributed Charges)– 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)
Chart Change Impact
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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