FY2009 WEB-BASED BUDGET DEVELOPMENT PROCESS “A” FUNDS Developed and Presented by The Budget Office & eBusiness Solutions

2 Budget Office Objectives 1)Provide convenient tool for submitting base budget changes 2)Establish the FY09 base budget amount for each unique Department/Fund & object code combination 3)Improve data control and processing: Safeguard core data Reduce consolidation errors Better use time verifying budget information - not creating spreadsheets and pasting changes New for FY2009 – ability to add multiple lines to aid in tracking 36400/36500 offsets 4)Allow sufficient time to compile the Board of Trustees Budget Document 5) Enable an accurate and timely posting of FY2009 base budget to the general ledger

General Information – Tuition & Fees Tuition & Fees Request for changes was due April 1 Academic units – Tuition estimates  Three years of tuition data available by semester in DataWarehouse  Unless there is a known decrease in student enrollment, units can plan tuition budget that is AT LEAST the amount it is this year  If tuition does not look reasonable we will return it or change it in consultation with the Provost/VPRHS offices Failure to budget tuition at the expected level results in a significant variance of budget to actual and fluctuations in carryforward. University tuition increase Amount of increase unknown at this time Academic units do NOT budget for university increase

General Information – Pay Package Pay Package & Retirement  Currently, the House Budget includes a 1% pay increase-across the board for all classified employees and ‘without uniformity’ for unclassified. Senate Finance includes a 0% pay increase.  If there is a Pay Package, the State only funds a portion of the pay increase and the difference will have to be covered by tuition revenue.  The employer portion of the retirement contribution goes up a minimum of.18% beginning July 1, 2008 to fund the COLA for retirees from last year. There are no new state funds allocated to cover this increase, however this item is likely to be included in the tuition increase.  Health insurance is expected to increase on January 1, The percentage increase in unknown at this time. An estimate of the cost is likely to be included in the tuition increase.

General Information – State Appropriations All USC Campus base state budgets are cut in both the House and Senate appropriations bills for FY2009. This is a loss of recurring state support. Cut to USC Columbia (excluding the School of Medicine) House (2.68% reduction) $4,301,711 Senate Finance (2.52% reduction) $4,047,032 In the initial budget development, the cut will be taken in the General Fund, but will be assessed to units late in the budget development cycle or in August. The cut may be covered through a combination of tuition increase and unit reductions. Unless the state cut is covered 100% through a tuition increase, once a decision is reached on how to spread the cut to units, service units will see a reduction to the tax-in (81150) while academic units will see both a reduction to state appropriations (31500) and a reduction to the tax-out (86150). There is a possibility of mid-year cuts after the fiscal year begins.

General Information Service Units Beginning in FY08, Appropriations (31500) were removed and placed in Academic Units FEI funding added to appropriation (31500)

7 February 29, 2008 budget is the starting point  “Freeze” on permanent transfers was February 29  Units can still make non-recurring transfers – but any changes since March 1 are not reflected in the base FY2009 budget Why this date ?  More than half-way through the fiscal year  Fall tuition is in, tuition reports provide ability to estimate for Spring  Allows time to complete budget adjustments and prepare the web-based system Budget Development Basics

Budget Office Adjustments – NON-RECURRING  Examined all non-recurring budget transfer changes processed through February 2008  Removed non-recurring 3’s Within responsibility /36500 Outside responsibility - 363XX/368XX Carryforward 31533/31534  Removed 8XXXX transfers other than the tax codes For the Evening Program under RCCE, put back in an ESTIMATE for transfers out 86100, and put back in the offsetting ESTIMATE for transfer in to the academic units who participate  To offset changes in resources, expenditure objects were changed If the BD could be reversed back to the expenditures objects that were used, they were offset If we could not tell what object was used, was offset Non-Recurring Budget Changes

9 Budget Office Adjustments –RECURRING Recurring 3’s: Within responsibility /37500 Outside of responsibility - 373XX/378XX Rolled up to tax  For service units, this increased the tax in  For academic units, this created a tax in 81150, or if the source is FEI funds, this increased state appropriations (31500) Revenue Budget Office left revenue budgets unchanged except for two units with budget transfers that offset revenue to 3’s. Recurring (Permanent) Budget Changes

For the FY2009 base budget development - the Budget Office moved all permanent transfers to the tax except FEI transfers Examples: If an academic unit received permanent FEI funds, the source was If an academic or service unit received a permanent transfer from any unit, the source was 373XX If an academic or service unit sent a permanent transfer to any unit, the transfer was 378XX Permanent transfers inside a responsibility /37500 worked the same way – the tax was shifted one department/fund to another Permanent Budget Changes – Impact on Tax

Tax Academic Units Tax out was recalculated based on new allocation factors Revised (3 factor) tax method used Service Units No additional resources are allocated at this time

Tax FY2008 Base $ 120,205,635 FY2008 BOT Allocations, Swap of State Dollars – Increased $ 25,666,506 FY2008 Total Tax $ 145,872,141 FY2009 Base $145,872,141

Web-based Budget Development Tool WEB BASED BUDGET

14 Change existing resource and expense budgets within current allocation Units cannot use 31500, 31525/31526, 31534/31533 or tax codes 81150/86150 Units should not budget any pay package increase Enter unit dollar changes and comments at the object code level Budget additional resources Excluding the University tuition increase and carryforward Drill down on Dept/Fund to see all changes processed by the Budget Office Download all data to an excel file Add object code for a new revenue or new expenditure budget Establish new Dept/Fund accounts and budgets *Must submit account memoranda by May 2, 2008 Make comments for Budget Office and for unit records Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level Units Can…

Object Code Units may need to budget and/or reallocate amounts in This object code may be used but should be reserved for holding funds that do not have a specific use at the time the budget is developed Some units will need to remove negative budget amounts in 5XXXX objects

16 Unit budgets are changed and comments are provided, if necessary, at the object code level by May 2, 2008 Account memoranda are submitted for newly established Department/Fund accounts Unit budgets do not have debit amounts in revenue object codes and credit amounts in expenditure object codes All resources and expenditures are equal You send your budget analyst an indicating you have completed your budget entry Units will check box to indicate actions are complete Budget Office will lock responsibility at completion Your Work is Complete When…

Web-based Budget Development Dates  Web-based budget tool available for all units beginning Thursday, April 17  Budget Office will when the system is up  All units will have until Friday, May 2 to complete budget changes  When you are finished, please your budget analyst and check box on web-based system to indicate completion

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