Permanent Budget

PPS

Provisions Benefits

Budgeting

Feb. 1, 2016

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Introductions

• Name

• Department

• Years of Service at UCSD

• Types of Funds Managed (State Funds, Indirect Cost Recovery, Self-supporting, Private, etc.)

• Reason for Taking the Course

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Agenda

• Permanent Budget vs. Operating Ledger

• How Permanent Budget Affects Current Year

• Budget Hierarchy and IFIS Chart of Accounts

Break

• Budget Queries and Tools

• Understanding Your Operating Budget

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• The dictionary defines “budget” as a plan specifying how resources (e.g. time and money) will be spent or allocated during a particular period.

• Budgeting is a tool for making resource allocation decisions to implement the strategic plan.

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A budget aids in understanding resource availability while:- Measuring the effectiveness of resource management- Ensuring accountability

A budget is a PLANnot a financial accounting of fund balances.

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• Resources are limited

• Needs and wants are Unlimited

• Identification of needs

• Choose Among Need – Priorities

• Communicates Plan

• Equates plan in Financial Terms

• Permits Review and Re-evaluation of Program

• Control Device

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Permanent Budget Operating Ledger (CY Budget)

The approved annual budget for the financial operation of the University.

The University’s financial record of expenditures for the current fiscal year.

Includes:

• Budgeted funds.

• Academic and Staff Full Time Equivalents (FTE’s).

Includes:

• July 1st permanent

budget appropriations.

• Unexpended balances or deficits carried forward from the previous year.

• Other one-time allocations.

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Permanent Budget Operating Ledger (CY Budget)

Funds that are expected to continue from year to year, supporting ongoing activities of the University.

University’s permanent budget plus other special purpose funds that come to the University for a designated purpose.

Includes:

• State and UC General (19900, 19933)

• Tuition and Fees (20000, 20224)

• IDC Recovery (05397, 07427, 69750)

• Endowments (3xxxx)

• Self-Supporting (6xxxx)

Includes:

• All Permanent Funds

• Contracts

• Grants

• Gifts

• Other Sources

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FY 2013/14 Permanent Budget?

a.) $1.3B b.) $934.9M c.) $675.4M

Revenues to support the university’s Core activities in 2012?

a.) $1.78B b.) $2.64B c.) $3.42B

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FISCAL YEAR 2010-11 Perm Budget CY Ledger

June 30, 2011 Balance (Carryforward) -- $13,000

June 30, 2011 Permanent Budget $150,000 --

FISCAL YEAR 2011-12

Carryforward from prior year

July 1, 2011 Salary Allocation (Subs 0 & 1)

July 1, 2011 Non-Salary Allocation (Subs 2 – 8)

--

--

13,000

100,000

50,000

Total July 1, 2011 Balance

One-Time 10% Budget Reduction

October 1, 2011 - 2% Merit Increase

Total 2011-12 Actual Expenditures/Adjustments

June 30, 2011 Net Balance (Carry Forward)

--

--

12 Months: 2,000

--

--

$ 163,000

(15,000)

9 Months: 1,500

(145,000)

$ 4,500

June 30, 2011 Permanent Budget $152,000

FISCAL YEAR 2012-13

July 1, 2012 Salary Allocation (Subs 0 & 1)

July 1, 2012 Non-Salary Allocation (Subs 2 – 8)

-- 102,000

50,000

Total July 1, 2012 Balance -- $156,500

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• The FTE represents the percentage of a position which is permanently budgeted

100% permanent funding = 1.00 FTE

67% permanent funding = .67 FTE

• FTE’s are used to record both filled and vacant positions (provisions)

• Reported to the State of California for both Academic and Staff positions

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• Used to report employee and provision detail for Sub 0 (Academic) and Sub 1 (Staff) permanent budgets.

• Includes permanent staffing detail from the Payroll Personnel System (PPS) and the Provision Master File.

• Access to the permanent staffing system is limited to the user’s PPS access as set by their DSA.

• Information contained in the permanent staffing system is confidential.

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Offered by UCSD Staff Education and Development

Topics Include:

• Overview of the Staffing List and how it is used for Systemwide reporting.

• How to use and balance your Staffing List.

• How salary adjustments are funded.

• How to properly calculate and fund employee benefits related to salary adjustments.

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What is the difference between an Appropriation and an Allocation?

• An APPROPRIATION is authorization to spend money if it is available.

• An ALLOCATION is a promise that it is available. Funds are released (allocated).

• It is not usual to APPROPRIATE money that will never actually be allocated.

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Governor & Legislature Approve State Budget

UCOP

UCSD

Vice Chancellors

Departments

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Recent Campus Priorities have included:

• Academic and Research Programs

• Energy/Utility Shortfalls

• Deferred Maintenance

• Information System Upgrades

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Systemwide Administrative Unit (SAU) Permanent Operating

UCSD Fund Source (Local Programs) 0 --

UC Fund Source (Systemwide Programs) 5 --

Sub Campus Code

General Campus 1 --

Health Sciences 2 --

Marine Sciences 3 --

Vice Chancellor Area

Chancellor A AAAAAA

VC Academic Affairs B GAAAAA

VC Business Affairs C DAAAAA

VC Student Affairs D FAAAAA

VC Resource Management & Planning E CAAAAA

VC Health Sciences L JAAAAA

VC Marine Sciences M HAAAAA

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Systemwide Administrative Unit0 - Local Campus Activity

Sub Campus1 - General Campus

Vice ChancellorB - Academic Affairs

Organization416220 – Chemistry & Biochemistry

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• Organization codes “roll-up” to a single Vice Chancellor.

• Departments can have more than one organization

• 416220 = Chemistry & Biochemistry

• 721510 = Chem & Biochem Storehouse

• 776220 = Undergraduate Student Aid

Who is responsible for the activity?An Organization is a 6 digit code representing a UCSD department or

operating unit.

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What is the purpose of the funding?Accounts are classified according to program, which corresponds to the purpose for which costs are incurred.

Program Numbers Must Stay in the

Same Range

416220 – 400000 Instruction

416220 – 440000 Research

776220 – 770000 UG Student Aid

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Program Range Program Category

40xxxx Instruction & Departmental Research

42xxxx Teaching Hospitals

43xxxx Academic Support

44 – 59xxxx Organized Research

60xxxx Libraries

61xxxx University Extension

62xxxx Campus Public Services

64xxxx Operation & Maintenance of Plant

66xxxx General Administration

68xxxx Student Services

72xxxx Institutional Support

76xxxx Auxiliary Enterprises

77 – 79xxxx Student Aid

80xxxx Budgetary Provisions

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Organization Range Program Range

41xxxx

40xxxx

44 – 59xxxx

62xxxx

42xxxx 42xxxx

43xxxx 43xxxx

60xxxx 60xxxx

61xxxx 61xxxx

64xxxx 64xxxx

66xxxx 66xxxx

68xxxx 68xxxx

72xxxx 72xxxx

76xxxx 76xxxx

77 – 79xxxx 77 – 79xxxx

80xxxx 80xxxx

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• Fund Restrictions• Accountable to different parties

• Limit how much is spent

• Limit how funds are spent

Fund AccountingThe convention by which resources for various purposes are classified, and reported in accordance with regulations, restrictions, or limitations imposed by sources outside the institution.

• Funds Must Retain Their “Color”• Can’t cross fund colors (Don’t mix cans of paint)

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Simplified Operating Funds Initiative

What or who is SOFI?

UCCore

San

Diego

Core

Simplified Operating Funds Initiative

Confidential ~ For Internal Planning Only

What funds are In and what are Not

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The funds INCLUDED in the SOFI

represent approximately $1B of

unrestricted resources of the

campus

State General Funds *

Systemwide Tuition & Fees *

University General Funds

Research & Administrative Overhead

TTO/Patent Income

Investment Income

January 2016

*Specific Exclusions

Lottery Funds

State Specific Research and Online Education Initiative

Student Services Fee Funds

The funds EXCLUDED from the SOFI

represent over 70% of campus

resources and are largely restricted

or designated

Contracts & Grants

Private Gifts

Endowment Earnings

Health System

Auxiliaries

Self-Supporting Enterprise

Simplified Operating Funds Initiative

Confidential ~ For Internal Planning Only

In order to:

Improve financial management across the campus

Focus on outcomes rather than fundcolor management

Optimize expenditures to meet the expectationsof the Governor, Legislature, students and other stakeholders

Clearly depict the cost of fulfilling the campuscore mission, and the resources that support that cost

UC San Diego will:

Pool “core” campus resources to support the core

academic investment and general institutional

operations

Continue fund accounting for revenue streams

UC San Diego’s Vision for the Future…

Core Campus Resources

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January 2016

People

Programs

Outcomes

Strategic Operating Plan

Simplified Operating Funds Initiative

Confidential ~ For Internal Planning Only

29January 2016

How does SOFI simplify?

Simplified Operating Funds Initiative

Confidential ~ For Internal Planning Only

How does SOFI simplify?

Benefits of Expenditure Mapping

» Strategic spend using the “first‐dollar principle” ensures

full expense of General and Tuition funds in support of

the academic mission

» Based in policy that articulates leadership’s plan and

priorities ahead of actual spend

» Flexible and responsive to external requirements

» Any carry‐forward balances are held in the most flexible

funds

Objectives Accomplished

» Meet legislative, state, and other stakeholder reporting

requirements

» Responsive to public perception and expectations

» Manage specialized circumstances

2nd: VariousOther Funds

Mapping to Source Funds

1st: State &UCGF,Tuition &Fee Funds

Last: FlexibleFunds (e.g.Carry $$ in Opportunity, STIP, etc.

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January 2016

SOF Expenditures

Fulfilling Reporting Requirements

The solution enabling response to stakeholder requests for fund‐ specific information is a distribution (“Mapping”) of SOF expenses to the source funds

Simplified Operating Funds Initiative

Confidential ~ For Internal Planning Only

Detail of Funds Included in SOFI

Below is the list of source funds currently proposed to be included in SOFI

31January 2016

SOFI: Fund Inclusion

UC CORE FUND (number TBD) CAMPUS OPERATING FUND (number TBD)

Fund Fund Title FGC Fund Fund Title FGC

State General Funds Research ICR

19900A GENERAL FUND 401000 05397A EDUCATIONAL FUND 407230

19900R GENERAL FUND-STATE AWARDS 401000 07427A OPPORTUNITY FUND 407220

19904A S/A UTEP 401000 69750A CONTRACT AND GRANT ADMIN 410250

19905A S/A INSTRUCTIONAL EQUIPMENT REPL PR 401000 69753A NET-NEW INDIRECT COST RECOVERY 410210

19906A S/A INSTR USE OF COMPUTER 401000

19923A K-12 TEACHER DEVELOPMENT PROGRAMS 401000 Internal Overhead Recovery

19924A-C STUDENT ACADEMIC PREPARATION PROGM 401000 67531A ASSA ADMINISTRATIVE OVERHEAD 410290

19925A S/A SUBSTANCE ABUSE/SF 401000 68606A ENDOWMENT COST RECOVERY-REGENTS 410290

19926A S/A UCOP ADMINSTRATIVE SYSTEMS 401000 68607A ENDOWMENT COST RECOVERY-FOUNDATION 410290

19946A LEASE PURCHASE PAYMENTS 401000 75451A DIFF INC RESV - CENTRAL ADMIN 411100

19948A LEASE PURCHASE DEPT SAVINGS 401000

19969A STATE FUND - STUDENT FINANCIAL AID 401000 Patent Income

19970A SUBJECT MATTER PROJECTS 401000 60500A TECHNOLOGY TRANS COPYRIGHT INCOME 410290

19990A Y/E ADJ- GF 401000 60502A TECHNOLOGY TRANSFER PATENT INCOME 410290

60502B PATENT PROSECUTION 410290

60505A TTO MATERIAL TRANSFER 410290

UCGF - Univ. generated General Funds 68800A SYSTEMWIDE PATENT INCOME 410290

19933A UC GEN FUND FROM ICR 402000

19934A STATE APPROP/STATE AGRMNT OVERHEAD 402000

19940A UC GENERAL FUND YE ADJ 402000 STIP/TRIP Income

19941A MISC UC GENERAL FUNDS 402000 69899A VC-DEVELOP & UNIV RELATIONS-STIP 410290

19942A NON RESIDENT SUPP TUITION 402000 69900A STIP CLEARING 410290

19943A NRT GRADUATE ACADEMIC 401000 69901A CHANCELLOR'S STIP FUND 410290

69903A 2009/2010 5 YR STIP LOAN 410290

69987A VC-D&UR UC FDN STIP ASSESSMENT 410290

Systemwide Tuition & Fees 69988A VC-D&UR REGENTS STIP ASSESSMENT 410290

20000A STUDENT SERVICE FEE 403110 69992A VICE CHANCELLOR-MARINE SCIENCE-STIP 410290

20095A TUITION 403120 69993A VICE CHANCELLOR-BUSINESS & FIN-STIP 410290

20226A PROF DEG SUPP TUITION 403142 69994A VICE CHANCELLOR-ACADEM AFFAIRS-STIP 410290

20225A PROF DEG SUPP TUITION - MBA 403145 69995A VICE CHANCELLOR-STUDENT AFFRS-STIP 410290

20224A SOP PROF DEGREE SUPP TUITION 403147 69996A VICE CHANCELLOR-RESOURCE MGMT-STIP 410290

20223A-R IRPS PROF DEG SUPP TUITION 403152 99998A TRIP CLEARING UCOP DISTRIBUTIONS 410290

20290A SUMMER SESSION-FISCAL YEAR 403200

Total UC Core Fund Total Campus Operating Fund

still under review

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IFIS = Integrated Financial Information SystemCOA = Chart of Accounts

I = Index A seven character code representing a Fund-

Org-Program combination.

F = Fund Distinguishes the source of funding for an

activity or educational program from other

funding sources.

O = Organization Identifies the department or office that is

financially responsible for the activity.

A = Account Defines the type of transaction.

P = Program Dictates the type of activity.

A = Activity Reserved for future use.

L = Location Identifies plant assets and related capital

expenditures.

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Account Type (first digit)

• Account numbers define the type of transaction (Revenue, Expenditure, or Transfer). Account numbers are the only COA element not “hard-coded” to an index number.

• Sub Accounts (second digit - used for budget entries)

Expenditure accounts are broken down into sub accounts, which represents the general type of expenditure (Salary, Travel, Equipment).

• Object Codes (last four digits - used for financial entries)

A more detailed breakdown of expenditures used for financial reporting. Campuses may assign multiple object codes for each sub account category.

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Account Type

Sub Account Object Code Account Category

5 x xxxx 5xxxxx = Revenue Accounts

6 x xxxx 6xxxxx = Expenditure Accounts

6 0 xxxx 600000 = Academic Salaries

6 1 xxxx 610000 = Staff Salaries

6 2 xxxx 620000 = General Assistance

6 3 xxxx 630000 = Supplies and Expense

6 4 xxxx 640000 = Equipment

6 5 xxxx 650000 = Travel

6 6 xxxx 660000 = Employee Benefits

6 8 xxxx 680000 = Unallocated

6 9 xxxx 690000 = Recharge

7 x xxxx 7xxxxx = Transfer Accounts

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Budgeted “BD” Indexes Accounting Indexes

DEPBDxx DEPxxxx

Assigned by the CBO to establish a permanent budget.

Set up by the department using Index Management to track expenses.

Single Permanent Budget Multiple Cost Centers

19900A-416220-400000 19900A-416210-400000

CHEBD01 CHEBD01

CHE1234 – Course A

CHE5678 – Course B

CHE9012 – Course C

19900A-416220-440000 19900A-416210-440000

CHEBD02 BIOBD02

CHETEST – Project X

CHELABS – Project Y

CHEPROJ – Project Z

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Budgeted “BD” Index

Go to CBO Website

Click on “Tools and Forms”

Select “Budgeted Index number request”

Accounting Index

Go to Blink

Search “Index Management”

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15 minute break

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Please turn on your computers for the next section. Thanks!

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• Results are subtotaled by date and ‘BD’ index.

• Different Fund-Organization-Program (FOP) combinations requires different ‘BD’ index numbers.

• Initial Budget = Permanent Budget for current fiscal year.

• Transfers = Permanent adjustments (+ or -) made during the current fiscal year.

• Adjusted Budget = Permanent Budget for next fiscal year.

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Core Funds Self-Supporting

• Appropriations are your authority to spend (real money).

• Expenditure appropriations are recorded as credits to sub accounts.

• Revenue appropriations can only be recorded by central offices (CBO, GA, etc).

• Revenue Budgets are earning estimates.

• Revenue appropriations are recorded as debits to revenue accounts.

• Expenditure appropriations are recorded as credits to sub accounts.

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Authority to Spend = Sum of Appropriations

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(60-68) Expenditure Appropriation = $1,641,498

(5x) Revenue Estimate = -$180,000

(69) Recharge Estimate = -$1,461,498

Total Budget Estimate = -$1,641,498

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Core Fund expenditures are limited by…

______________________.

Self-Supporting expenditures are limited by…

_______________________.

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• Enter organization number you wish to query

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Adjustments: Only two types of adjustments affect the Adjusted Budget Report:

1. Payroll Documents = PRXXX

2. Transfer of funds = TFYXXXXX

Example: Document Number 01684 = T0501684 (1.00 DB FTE and $57,950 DB Adjustment)

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Core Funds Self-Supporting

• It’s your authority to spend

• Management tool

• Basis for some allocations

• Used for Systemwidereporting

• Used as a basis for rate setting

• Develops an operating plan

• Management tool

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Permanent Budget

+ Carryforward

+ One-Time Allocations

CY Operating Budget

• Permanent Budget Feed

• Prior Year Carryforward

• Other One-time Allocations

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Prior Year Carryforward

$61,356.43

Permanent Budget

$590,312.00

+

One-Time Allocations

$3,442.00

YTD Operating Budget

$655,110.43

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• Permanent Budget feeds into the current year operating ledger each July.

• Allocations are posted at the sub account level

• June 30 Adjusted Budget = July 1 Feed

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• Prior year surplus or deficit is carried over to the following fiscal year.

• Balances are rolled into the new year based on the reappropriation treatment of the fund.

19900A = Index/Sub Account

64230A = Index/Sub 8

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• Vice Chancellor Allocations

• Mid-Year Permanent Adjustments

Permanent allocations are augmented to cover current year portion of expense (e.g. merit funding). Requires department to prepare both a current year and permanent allocation.

• Other one-time allocations

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• Compare actual expenditures for the current period to budgeted figures for the same period.

• Compare actual expenditures for the current period to actual expenditures for the same period in the prior year.

• Identify trends.

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What questions would you ask about this December ledger?

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• Should spending be curtailed?

• Can you realign your budget between sub accounts?

• Can you request additional resources from your Vice Chancellor?

• Does your permanent budget require augmentation?

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Index DEPxxxx FTE

Permanent Budget

610000 3.00 $150,000

630000 (10,000)

640000 (5,000)

650000 (1,000)

660000 33,000

680000 20,000

Total 187,000

Index DEPxxxx FTE

Permanent Budget

610000 3.00 $150,000

630000 3,000

640000 500

650000 0

660000 33,000

680000 500

Total 187,000

Balance (“realign”) all indexes at the sub account level. NO negative balances.

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Fund Account Budget Financial Balance

19900A 630000 50 35 15

69750A 630000 25 30 (5)

19900A 630000 50 40 10

69750A 630000 25 25 0

Clear deficits at the Fund-Organization-Program level.

• ENPET expenditures to available fund sources

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• Revise permanent budgets as needed.

• Permanent adjustments made prior to June 30 will be reflected in the July 1 budget feed.

• Refer to annual closing instructions published in Blink. Includes fiscal closing dates and disposition of unexpended balances at year end.

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Campus Budget Office

http://blink.ucsd.edu/sponsor/cbo/index.html

Budget & Staffing Link

http://budgetlink.ucsd.edu

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1. Sign on to UC Learning Center

2. Click on Learn at the top

3. Select Learning Activity Evaluations from the menu

4. Find Budgeting 101A, click the start button

5. Complete the evaluation, click submit

Thank you! Please Turn Off Your Computer When You Leave.