BUDGET PROCESS TRAINING Prepared by: Extension Financial Operations

Timeline Jul/Aug* - Recommended tax rates (if applicable) are calculated and sent to DB by District Support Staff Sep* - DB meets to set tax rates Oct** - Extension Tax Rates are reported to county/state Nov** - Citizens of the county begin paying tax bills Jan*- All agents work together with DD to identify budget needs *approximate date **definite date 3

Timeline Feb/Mar - CEC makes budget recommendations (KRS 164.655(8)) Mar 15* - DD will approve a budget to present to the DB Apr 15** - DB must file the minimal budget with County Judge Jul 1** - Fiscal Year begins *approximate date **definite date 4

Budget Planning & Preparation Gather facts: include all anticipated income categories tax revenue, carryover, interest, other income Involve all Agents & District Board in process and decisions involve CEC: program needs/budget recommendations Be aware of UK’s share in cost of the CES Program Include County Program Cost Share Base Program Support Cost Base Agent Compensation Contribution County Contribution for Benefits 5

Extension Budget Template (Microsoft Excel) Anticipated Income County - Select your county from the Dropdown box next to County Real Property - Info comes from District Director/District Support Staff and the board meeting that set tax rates in Sep/Oct Assessment - Enter the Property Assessment from the DD/DSS email Tax Rate - Enter the tax rate levied by the District Board at the Sept/Oct Board meeting last calendar year. Personal Property - Info comes from District Director/District Support Staff and the board meeting that set tax rates in Sep/Oct Motor Veh./Watercraft - Info comes from District Director/District Support Staff and the board meeting that set tax rates in Sep/Oct **Note - Motor Vehicle and Watercraft tax was capped in 1983 and cannot exceed the rate of January 1, 1983 Anticipated Delinquency See county clerk or county sheriff for average local delinquency rates. Collection If the collecting agency (usually the Sheriff's Department) charges a percentage to collect the taxes, enter that percentage here. 6

Source of Income 7 Source of Income Ext. District Tax - Will populate from information entered in the Anticipated Income Other Ext Dist. Taxes - Funds generated by other taxes such as Franchise Tax or Coal Severance Tax. You can change these titles to reflect the source of income Co. Gen Fund - for counties that receive appropriations directly from Fiscal Court. User Defined - monies received from sources other than taxes or Fiscal Court. Examples would be local school board or United Way. You can changed the title to reflect that source. Interest - this is the amount of interest anticipated to be generated on all funds held by the Extension District for the upcoming fiscal year. Reserve - Any funds held in reserve such as savings accounts or CD's All monies held by the District Board need to be accounted for. No council funds need to be reported. Capital Improvement Fund - Any reserve funds held for specific capital improvement expenditures. Equipment Fund - Any reserve funds held for specific equipment expenditures. Anticipated Carryover - Estimated balance of funds on June 30th of current year. (Excludes Reserves, Capital Improvement Fund, and Equipment Fund.) 7

Salaries (Full Time and Part Time/Temp) Salary: Support Staff; Full Time; Partial Benefit Support Enter the person's UK id (do not enter their name) Enter proposed hourly rate Enter hours worked per week. Salary, benefits and amount will be figured automatically 8

Support Staff Salaries Anticipated salary adjustments Adjustments up to 3% (based on performance) Counties will complete a Salary Recommendation Form for each county paid employee (TBA – probably June) Adjustments should be included in the budget plans Remember: All adjustments to salary must be approved by the UK Board of Trustees and will be effective July 1. **Counties should postpone entering the budget into the DLG website until the budget is FINAL. 9

Salary: Professional Staff Agent Compensation - Base Agent Compensation - From the dropdown box select the appropriate Base Agent Compensation Rate that applies to your county. See FY Budget Guidelines for details Agent 4th and Up at Benefit Rate of 38% - Enter the person's UK id and salary. Benefits and amount will be figured automatically. 10

Determining Factors for Base Agent Compensation Per Capita County Property Assessment Indicator of the relative wealth of the county Annual County Extension Operating Budget Reflects the county’s traditional support for CES Rankings Determined By: Property Assessment & Operating Budget are combined Counties are ranked highest to lowest, based on combined measure Counties are grouped into 5 categories 11

Base Agent Contributions 2 Agent counties: Contribute $2,800 per year 3 Agent counties that move to 2 agent counties will contribute 2/3 of the base agent amount for Category V 12

Stop Gap Agents and Interns Salary: Professional Staff Stop Gap Funded Agent Positions - enter the person's UK id and appropriate salary amount (benefits and amount will be figured automatically) Student Intern Position - Enter estimate for intern salary (benefits and amount will be figured automatically) 13

Stop Gap Funding Stop Gap Funding for an Agent after May 1, 2016 Cost to county - $3500/mo or $42,000/yr As of July 1, 2018, Stop Gap Funding will be changing. College Administration will consider allowing a county to “stop-gap” a vacant position on a case-by-case basis 14

Travel 15 Travel Enter employees name Enter amount to be budgeted Ensure equity amounts among employee groups (Agents; Assistants; Support Staff) 15

Travel Mileage reimbursement rate Effective January 1, 2018 - 54.5 cents @ mile Be aware of all UK Travel Regulations Reimbursements for travel must adhere to UK Guidelines BPM link: http://www.uky.edu/EVPFA/Controller/files/BPM/E-5-1.pdf 16

Professional Improvement Funds 17

Professional Improvement (PI) Funds Maximum Agent limit - $3500; Additional $1,000 for ESP Acceptable Use of PI Funds: Professional Association Dues Travel and Subsistence Registration fees for approved Prof. Meetings/Activities Unacceptable Use of PI Funds: Tuition of courses offered as college credit Agent dues for outside professional, civic or assoc. (County may pay office memberships to local civic organizations) See DD for approval **Only budget PI funds when all other obligations are met 18

PI Funds for Support Staff All Counties should include funds for staff training/development Examples of PI Opportunities for Support Staff Chi Epsilon Sigma District Support Staff Training CAFÉ Staff Appreciation Day at UK Various Training opportunities throughout year Suggested Guide for budget per support staff - $1500. All support staff in a county should be budgeted at the same amount (exceptions may apply in unique cases) **Only budget PI funds when all other obligations are met 19

Base Program Support Number: Drop down menu (2 agent or 3 agent) Amount: Based on either 2 or 3 agent Additional operational costs (per person) – Enter the number of additional staff in accordance to Guidelines for County Program Cost Share Base Program Support Number of professional Staff - Select from the drop down menu (cell E163) either 2 agent or 3 agent. Then select from the drop down menu (cell F163) corresponding value according to the Guidelines for County Program Cost Share. See FY Budget Guidelines for details Additional Operational Costs (per person) - enter the number of additional staff in accordance with Guidelines for County program Cost Share. See FY Budget Guidelines for details 20

Optional County Support Costs Postage - Counties wanting to send money to UK for extra penalty mail cost enter budgeted amount here Publications/Order Entry - Counties wanting to send money to UK for publication cost enter budgeted amount here Optional County Support Costs Postage - Counties wanting to send money to UK for extra penalty mail cost enter budgeted amount here Publications/Order Entry - Counties wanting to send money to UK for publication cost enter budgeted amount here 21

Office Operation: Compare to last years spending in each category Agents should have equal appropriations for Program support funds Program support funds can be budgeted for assistants Capital Improvements here are funds within this year’s budget to be spent on capital improvements Equipment funds here are funds within this year’s budget to be spent on equipment. 22

*Require board action to be spent. Reserve for Emergency *Require board action to be spent. Reserve For Emergency Items in these lines require board action to be spent Capital Improvements Fund - Enter the amount to be budgeted for Capital Improvements Equipment Fund - Enter amount to be budgeted for the Equipment fund Reserve - This cell is the budget balancer. The amount is automatically calculated for this budget sheet. If the amount appears in parenthesis, you have overspent your funds 23

Extension Financial Operations Contacts Tina Ward Business Analyst tinaward@uky.edu 859-257-0132 Ty Back Fiscal Compliance Officer tback@uky.edu 606-666-2438 ext. 229 Chris Shotwell Director of Financial Operations chris.shotwell@uky.edu 859-257-7194 For questions regarding budget, please contact: District Support Staff District Director Extension Financial Operations 24