Florida International University Finance Managers Meeting

February 15, 2013

1

Florida International University Fiscal Year 2013-14

Budget Kick-Off

February 15, 2013

2

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float Methodology

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

3

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float Methodology

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

4

FY 2013-14 STATE REVENUE PROJECTIONS

5

Current State Projections (1)

Available Funds

FIU Assumption for State Projections

Base Budget

Critical Needs(2)

High Priority Needs (2)

General Revenue Balance

$27,854

($24,608)

($1,822)

($988)

$436

2%

$27,854

($24,608)

($1,822)

($988)

$330

1%

What does this mean for FIU? FIU estimated reduction in State Appropriations = $0M Based on these estimates and University projections of revenues and expenditures, there could be a

budget gap in FY 2013-14

General Revenue ($ Millions)

(1) Figures based on GR Estimating Conference – Dec .2012 and EDR Florida Economic Overview Report – Jan. 2013 (2) Based on Long Range Financial Outlook (EDR- Sep.2012), Critical Needs Includes $215M transfer to Budget Stabilization Fund, $18M Lawton Chiles Fund and $1,000M Reserves

Other Adjustments $0 ($106)

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float Methodology

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

6

TIMELINE Key Budget Dates

7

February

11 • Provost & CFO Approve Budget Assumptions

15 • Budget Kick-Off

19-22 • Budget Workshops

March

1, 8, 15 • Open Labs MMC

5 Legislature in session

6 • Open Lab BBC

29 • EABMs to submit FY 2012-13 Forecast

April

4 • Open Lab BBC

5, 12 • Open Labs MMC

22 - 30 • CFO / VP Budget Reviews

26 • EABMs to submit FY 2013-14 Budget

May

1-3 • CFO / VP Budget Reviews

1-15 • OFP consolidates University-Wide FY 2013-14

Budget

3 Legislative Session Ends

15 • Budget document is submitted to BOT

28 Governor Approves/Vetoes Budget (estimated)

June 5 • BOT Finance and Audit Committee Meeting

12 • BOT Full Board Meeting

July 1 • FY 2013-14 Budget available in PeopleSoft

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float Methodology

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

8

9

BUDGET ASSUMPTIONS Enrollment

FTE 28,733

FTE 30,403

FTE 29,764

FTE 29,964

FTE – Annual Count based on Fiscal Year Fall, Spring, Summer Enrollment Figures are preliminary and subject to change. Professional includes College of Medicine and Law

23,977 25,480 24,956 25,035

4,123 4,144 4,066 4,115

633 779 743 814

-

8,000

16,000

24,000

32,000

FY 2011-12Actuals

FY 2012-13Budget

FY 2012-13Forecast

FY 2013-14Preliminary

Budget

Professional

Graduate

Undergraduate

BUDGET ASSUMPTIONS Tuition and Fees

Undergraduate: 0% Increase

Graduate: 5% Increase

Law: 10% Increase

COM: 0% Increase

Base Tuition

Differential Tuition

Local Fees

0% Increase Applies to Undergraduate tuition only Rate applies to new students as of Fall 2007 except students with

prepaid contracts 30% directed towards need based Financial Aid 70% to be used towards undergraduate education expenses

Athletics, Health and Student Activity Fees

Health Fee increase pending Committee approval

Other Fees Technology Fee and Financial Aid will remain at 5% of Tuition Parking Fee - Increase by 10% to cover Parking Garage VI and

debt coverage ratio Shared Services Fee – No change from 7% and 5.5% (for Health

and A&S)

Pending BOT / Legislative Approval

Will be based on FY 2012-13 final budget adjusted for: • Recurring and nonrecurring legislative actions • Changes in fringe benefit rate • Recurring salary adjustments • Adjustments in existing critical investments for

• Advisors • Law Enforcement Officers • Library

University-wide recurring salary adjustments

• Budgeted centrally for E&G • Budgeted by units for non-E&G

Departments should budget for individual salary actions

Interdepartmental Rates - refer to the OFP website for the

various rates Property Insurance rates will be provided by Auxiliary &

Enterprise Development

BUDGET ASSUMPTIONS Expenses

11

E&G Control Totals

Salaries

Other Direct Expenses

Individual units are required to submit their budget online except for the following funds:

• Concession Funds

Approved by CFO and Provost and input by the Office of Financial Planning

All major University-wide events will be covered at previous year’s level

Remaining amounts will be distributed based on historical levels and projected incremental revenues

• Agency Funds

Not Budgeted as they are based on monies collected

Budget Authority = Cash Based Control

• Contracts & Grants

Sponsored Research Projects and Miscellaneous and Overhead Departments Funds 350, 651 and 652

– Developed and input by the Division of Research DoR

BUDGET ASSUMPTIONS General Notes

12

4

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float Methodology

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

13

14

PERSONNEL Pooled Fringe Benefit Rate - Calculation Basis

Retirement Programs Insurance Programs Leave-related Programs Tuition Waivers Employees Only

All Salaries and Wages excluding:

• Parental and Sabbatical payments • Miscellaneous allowances • Other Earnings

Included in Fringe Benefits

Included in Salary Base

FY 2013-14 rates calculation based on: • Actual costs incurred from the two-prior fiscal years FY 2010-11 and FY 2011-

12 across all funds and all employee groups • Estimated 2013 health insurance changes • Adjustment applied for fringe benefit pool fund balance

15

PERSONNEL Pooled Fringe Benefit Rate - Proposed Rates

Employee Group FY 2012-13 FY 2013-14 Delta

Faculty / Administrative 29.73% N/A -N/A

Faculty ex College of Medicine / Administrative

N/A 29.27% N/A

Faculty – College of Medicine N/A 19.51% N/A

Staff 40.41% 40.54% 0.13%

Other OPS and Temporary Faculty 2.75% 2.43% -0.32%

Student OPS 0.43% 0.47% 0.04%

Cell-Phone* & Miscellaneous Payroll Allowances and Other Earnings

7.65% 7.65% 0.00%

* Cell phone Allowances are no longer charged taxes and therefore not subject to fringe benefit rate

Note: Rates are subject to final review and approval

16

PERSONNEL Pooled Fringe Benefit Rate – Budget Process

Approved rates are built into the budget and are applied from the beginning of the coming fiscal year

E&G ex-CoM Control Totals by Executive Area are adjusted to compensate for changes in the pooled rates • Adjustment based on all filled and unfilled budgeted positions as of February

15, 2013

Health Insurance for OPS Employees Working at Least 30 Hours

• Under the Affordable Health Care Act, effective Spring 2014, employers must provide health insurance for OPS employees working at least 30 hours or pay a penalty

• Financial impact uncertain and not included in FY 2013-14 rate • Will be charged to the fringe benefit pool • Rates will be subsequently adjusted for FY 2014-15

Position vacancies continue to create a significant salary float throughout FY 12-13

Temporary float will continue to be used to mitigate State budget reductions

Salary float process:

• New positions i.e. funded through Critical Investments:

– University retains 100% of salary float until the position is filled

• Existing and Replacement Positions:

– University retains 50% to partially absorb the recurring budget cuts

– Units keep the remaining 50% of the funds

PERSONNEL Salary Float Methodology

17

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

18

BUDGET DEVELOPMENT Process

Forecast Requested Budget

July 1, 2012 – February 28, 2013

March 1, 2013 - June 30, 2013 July 1, 2013 - June 30, 2014

Salaries Actuals will be pre-populated in Detail Budget Maintenance

Pre-populated in Detail Budget Maintenance based on Salary Encumbrance data includes Contractual OPS

Departments verify projections in Detail Budget Maintenance

Departments update budgeted positions in the Position Tool

Projections will be automatically populated in Detail Budget Maintenance on a cash accounting basis

Other Direct Expenses

Actuals will be pre-populated in Detail Budget Maintenance

Pre-populated in Detail Budget Maintenance with Original Budget of corresponding period; except E&G, based on YTD run rate

Departments verify projections and enter hourly temporary employee projections in Detail Budget Maintenance

Departments enter projections into Detail Budget Maintenance

19

Monthly budgeting of line items by activity department ID by account

Tools • Comprehensive Budget Manual • Detail Budget Maintenance – open for input Monday, February 18, 2013 • Position Tool - open for input Monday, March 11, 2013

Data as of February 15 will be loaded for information purposes only

Position tool will be locked until March 11

Forecast • OFP has already loaded 7 months of actuals; period 8 actuals will be loaded by

March 11

Training Workshops

• Budget Concepts and On-Line Budget Tool training – February 19, 2012 through February 22, 2012

• On-demand pre-recorded videos available on-line

Open Labs • MMC - March 1, 8, 15 and April 5, 12 – W6 • BBC – March 6, April 4

BUDGET DEVELOPMENT Process

20

BUDGET DEVELOPMENT Budget Workshops

$102

21

Concepts & On-Line Budgeting Workshops

Executive Area Date Time Place

All Areas – All Funds Tuesday, February 19, 2013 9:00 AM - 12:00 PM GC 150 - Auditorium

Student Affairs – All Funds Wednesday, February 20,

2013 9:00 AM - 12:00 PM MARC 125 - Case Room

BBC – All Funds Thursday, February 21, 2013 10:00AM - 1:00 PM @ BBC - WUC 221

Academic Affairs - All Funds Friday, February 22, 2013 9:00 AM - 12:00 PM CSC 1123- Training Rm.

On demand “How-To” videos are also available on the OFP website

CONTACTS

Executive Area Executive Area

Budget Manager

Financial Planning / Auxiliary & Enterprise

Development Fund

Academic Affairs

Tonja Moore 2168 Anneyra Espinosa 1138 E&G / SGA

Yakeline Rodriguez 6237 Auxiliary Test Prep Fee

Mirtha Alberto 0166 Michelle Li 0307 Sponsored Research

Francisco Valines 2333 Janet Medina 1399 Financial Aid

Business & Finance Ivette Capote 0345 Collette O’Meally 7092 E&G

Office of President Melissa Pozo 2111 Collette O’Meally 7092 E&G

Human Resources Jackie Barba 2466 Diane Singh 0255 E&G

Governmental Relations

Ana Herrera 3432 Collette O’Meally 7092 E&G

General Counsel Marcia Rodriguez 2204 Collette O’Meally 7092 E&G

22

CONTACTS

Executive Area Executive Area

Budget Manager

Financial Planning / Auxiliary & Enterprise

Development Fund

Student Affairs Matilde Gramling 2952 Collette O’Meally 1138 E&G / SGA

Yakeline Rodriguez 6237 Auxiliary

Advancement Yolande Flores 8317 Collette O’Meally 7092 E&G

Yakeline Rodriguez 6237 Auxiliary

External Relations Desiree Rodriguez 0158 Collette O’Meally 7092 E&G

Yakeline Rodriguez 6237 Auxiliary

UTS Lucy Adames 8014

Anneyra Espinosa 1138 E&G

Yakeline Rodriguez 6237 Auxiliary

Technology Fee

Facility Operations Edward Brozic 4008 Collette O’Meally 7092 E&G

Yakeline Rodriguez 6237 Auxiliary

Athletics Alexander Duque 2398 Yakeline Rodriguez

6237

Athletics

23

CONTACTS

Direct Support Organizations Executive Area

Budget Manager Auxiliary & Enterprise

Development

FIU Foundation Inc. Milagros Garcia 8377 Michelle Li 0307

FIU Research Foundation Inc. Mirtha Alberto 0166 Michelle Li 0307

FIU Athletic Finance Corp. Alexander Duque 2398 Michelle Li 0307

FIU Health Care Network Bianca Garcia 4260 Michelle Li 0307

24

Subject Area Finance Contact Ext. Fund

Enrollment / Tuition and Student Fees Janet Medina 1399 All Funds

Critical Investments Collette O’Meally 7092 E&G

Position Tool - Salaries Vanessa Pedroso 0160 All Funds

Other Unrestricted – Fund 602 Michelle Li 0307 602

PantherSoft Support FSSS Call Center 7200 All Funds

BUDGET DEVELOPMENT Enhancements

Focus on System Updates and Automated Data Validation

PantherSoft Budget Tools (Detail Budget Maintenance, Cash Transfer and Position Tools) and Reports updated to include new Chartfields • Activity Nbr • Cost PID • Task • Budget Ref

Automated Data Load of Position Tool from HR System

System Validations in Position Tool: • Position Number validation against HR system • Validation of FTE, cannot be greater than 1 or less than 0

System Validation in Cash Transfer Tool: • Cannot add transfers to and from E&G

Data updates from Position and Cash Transfer Tools to DBM • Will now be updated every hour on the hour instead of 3 times daily.

25

State Funding

Timeline

Budget Assumptions

• Enrollment

• Tuition & Fee Revenue

• Expenses

• General Notes

Personnel

• Pooled Fringe Benefit Rate

• Salary Float

Budget Development

• Process

• Workshop Schedules

• Contacts

• Enhancements

Foundation

FY 2013-14 BUDGET KICK-OFF AGENDA

26

27

FIU Foundation FY 2013-14 Budget Kick-Off

February 15, 2013