Budget Workshops February 3 rd & 5 th, 2015

Agenda Introduction Introduction Josette Shaughnessy, CPA AVP Budget & Financial Services Planning for Improvement Planning for Improvement Dr. Dolores Gross, Director Institutional & Community Planning Budget Development Processes Budget Development Processes Laura Tellez Budget Director

Mission Statement Our office plans and coordinates budget activities, produces the annual budget, various analyses and reports District-wide and to external agencies. These services empower management to effectively direct its human and financial resources.

Important Dates October 22Budget Forms 1 and 2 are ed to Budget Heads February 2Budget development instructions are posted on the Budget Office’s web site ___________ Date budgets are due to your respective (fill in date) executive level’s office March 6Budgets are due to the Budget Office

Budget Office Services Budget Office Services Prepare the District’s Annual Operating Budget (Institutional Accounts and Self-Supporting Programs). Coordinate the Adoption of the Tax Rate with External Agencies. Perform Additional Requirements when a Tax Rate Increase is Proposed and Adopted.

Budget Office Services (cont’d.) Budget Office Services (cont’d.) Prepare state mandated documents/reports such as the Budget Book, Legislative Appropriations Requests (LAR) and the Report of Fundable Operating Expenses (RFOE). Conduct Annual Budget Workshops, Present Semi-annually at Effective Management Series Workshops and Other Presentations.

Budget Office Services (cont’d.) Budget Office Services (cont’d.) Guide Budget Heads in Preparing their Budgets. Assist in Resolving Budget Issues. Monitor Expenses Through NSF and Monthly Reports. Review Personnel Requisition Information and Verify Funding.

Budget Office Services (cont’d.) Budget Office Services (cont’d.) Assess Expenses as Compared to Budget. Prepare Various Analyses and Reports. Report Monthly Salary Savings. Process Budget Related Banner Forms.

Budget Development Calendar Highlights Budget Development Calendar Highlights Sept.New fiscal year begins Oct.Budget Forms 1 & 2 are sent to Budget Heads Nov./Dec.Budget Book is finalized and distributed Jan./Feb. Prepare for and conduct Budget Workshops MarchBudgets are due to the Budget Office

Budget Development Calendar Highlights (cont’d.) Budget Development Calendar Highlights (cont’d.) March/AprilBudget Office reviews budget requests April/MayBudget Meetings with President and VP’s May/June/JulyBoard Meetings/Workshops/Presentations July or Aug.Board adopts next year’s budget Aug. or Sept.Board meets to adopt tax rate

Banner Codes Banner Codes Executive Level – represents the area: Instruction, Student Services, Finance, etc. Fund - describes the type of resources: Institutional Accounts (11000) Self-Supporting Programs (12000’s) Physical Plant (13000)

Banner Codes (cont’d.) Banner Codes (cont’d.) Organization - represents department, program or discipline: Ex: Police Department, Americana Language Program, English VV Account - describes the object of expenditure: Salary Pools, Supplies Pool, Travel Pool, Equipment Pool, etc. Example: Fund Organization Account (Institutional) (Police Dept.) (Supplies Pool)

Budget Allocations

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Executive areas are required to remain within their total current budget. New orgs may be created and other orgs closed to allow for reallocation of funds. Reallocations are permitted within executive areas among orgs, accounts or budgetary pools. Full-time salaries are not subject to reallocation unless specifically approved by the President. Reallocations

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget A new full-time position created from other funding sources must be approved by the President. Excess in Overhead budgets can only be reallocated to other Overhead budgets unless approved by the President. Funds must be cross referenced from where they come from to where they went. Reallocations (cont’d.)

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Positions vacated during the fiscal year are lowered to entry level. Vacant positions are budgeted in the recruitment pool of the respective Vice President. Only the entry level value of a vacated position can be reallocated. Savings remain in the District unless authorized by the President. Vacant Positions

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Travel budgets are “pooled.” There is no distinction between in-town, out-of-town or foreign. Actual expenses incurred during the year will be charged to the corresponding travel accounts. Local travel expenses include reimbursement for mileage, conference registrations and parking expenses. In-town mileage reimbursement is currently 50.5 cents per mile. Travel

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget An item less than $5,000 should be budgeted in the supplies pool account Supply budgets are “pooled.” Actual expenses incurred during the year will be charged to the corresponding supply accounts. Supplies

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Capitalization policy defines equipment as any single item with a unit cost of $5,000 or more. Equipment is expected to have a useful life of at least one year and is not a consumable product. The $5,000 minimum does not apply to library books. Equipment

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Exceptions to the $5,000 threshold are items such as printers, fax machines, scanners, etc. For a detailed list, contact Property Management Control. These items should be classified as fixed assets regardless of the cost. Equipment purchases must be justified to the appropriate Vice President. Equipment (cont’d.)

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Budget heads should refer to the guidelines to determine if a program is self-supporting. These programs should generate sufficient revenues to fully offset their annual expenses. All salaries positions assigned to the programs must be budgeted in these orgs. Self-Supporting Programs Budget

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget The same planning guidelines apply to these programs as institutional budgets. Self-supporting programs should have a realistic revenue amount. An overhead recovery rate of 15% needs to be included based on the actual revenue. Self-Supporting Programs Budget (cont’d.)

Budget Development Guidelines Rollover of Budget Budget Development Guidelines Rollover of Budget Grant accounts are budgeted by line item not “pooled”. For more information regarding grants, please contact the Grants Management Office. Grants Budget Transfers Budget Transfers initiated during the current fiscal year are only temporary so continued funding must be addressed either thru reallocation or new request processes.

Budget Monitoring Tips Budget Monitoring Tips Budget Heads should review the Budget Status by Org Mgr, Labor and Org Detail Activity reports sent from General Accounting by after closing. Check the labor report to confirm that the employees listed are assigned to your department. Report any issues on monthly reports as they occur. Expenditures are handled by General Accounting. Budgets are addressed by the Budget Office.

Budget Monitoring Tips (cont’d.) Budget Monitoring Tips (cont’d.) Follow-up by monitoring your budget and expenditure reports to verify the corrections were made. Report any change in budget head or personnel timely by submitting the appropriate forms, e.g., Personnel Action Record, Budget Office Banner Maintenance form, etc. As reports are received each month, post the current month’s expenditures by account using the Budget Tracking Worksheet as a tracking tool.

Budget Tracking Worksheet  Employee’s individual salaries can be posted and monitored monthly. For example, if there are no personnel transfers, retirements, terminations, etc., the salaries should be consistent each month.  The worksheet may also be useful in tracking spending patterns which may help to plan your budget for the next fiscal year.

Budget Development Steps Review Budget Form 1 (Expenditure Detail) and Budget Form 2 (Salary Detail). Note any changes in red ink, initial and date. If there are no budget changes, initial and date to acknowledge that the forms were reviewed and indicate “no changes.” Cross reference funds from where they come from to where they went. BudgetHeads: Budget Heads:

Budget Development Steps (cont’d.) Prepare a Banner Fund/Organization/Account Maintenance Form to set up a new organization number or self- supporting program. (Contact General Accounting for assistance). Attach a completed Budget Form 1 and 2. (Blank forms are accessible thru our website). Submit the original authorized form(s) to the Budget Office. New Fund or Org

When Creating Two Orgs From One Submit a Budget Office Banner Maintenance Form to our office to update the approval queues. A Personnel Action Record (PAR) needs to be submitted to Human Resources to reflect the changes in Banner. Additional Steps

Non-Sufficient Funds (NSF) Flags The purpose of Non-Sufficient Funds (NSF) Flags is to prevent deficit spending when creating requisitions in the Banner System. Prior to starting a requisition, access the Budget Availability Status Form (FGIBAVL) in Banner to check your balance. If the amount requested exceeds your budget pool balance or if there is no budget pool, you have insufficient funds.

Non-Sufficient Funds Flags (contd.) If the requisition is submitted for approval, the Budget Head will see a “Y” in the NSF box on the approval form FOAUAPP when the NSF condition exists. The Budget Head cannot override the NSF flag. The requisition should not be approved. If the Budget Head approves the requisition without funds, the Purchasing Department will approve it regardless of the availability of funds; however, it will go to the NSF Queue. The Budget Office has access to override the NSF flag with the appropriate approvals.

Non-Sufficient Funds Flags (contd.) Institutional accounts can be overridden if the appropriate Vice President explains the reason for the deficit. Self-supporting accounts can be overridden if sufficient revenue becomes available above the budgeted amount to cover the expenditure. For further assistance, please contact your Accountant in the General Accounting Dept. Any NSF requisition(s) pending needs to be resolved before the end of the month in which it is submitted or it will be disapproved and returned to the requestor.

Non-Sufficient Funds Flags (contd.) The requisition has to be resubmitted by the requestor with the current date and ensure that there are sufficient funds before resubmitting it; otherwise, the requisition will go to NSF again. If the Budget Office overrides the NSF flag, that line item will become negative. The funding issue can be resolved through reallocation from another account or another org. A Budget Transfer should be submitted to the Budget Office for processing before initiating the requisition.

Budget Office Banner Maintenance Form The purpose of this form is to add or delete access to Banner funds and orgs. Access allows you to process purchase requisitions and/or monitor budgets and expenditures. Submit a form when there is a change in budget head, transfer, termination or retirement within your department. All requests for Banner access related to grant funds and orgs are completed by the Grants Management Office.

Budget Transfer Form The purpose of this form is to transfer “budgets” between orgs or accounts. Budget transfers are not allowed between different funds, e.g., (Institutional Fund) to 9xxxx (Plant Fund). Please review the Banner org and account’s available balance in FGIBAVL to confirm there are sufficient funds before submitting it. Budget transfers initiated during current fiscal year are only temporary. Transfers that are deemed to be permanent need to be reflected on next year’s Budget Form 1 & 2.

Questions? Questions?