1. Budget Planning & Development
Presented by:
Elizabeth Bay, Senior Budget Analyst
Tammy Anthony, Associate Budget Director
July 27, 2016

2. AGENDA Lapse Guidelines Recap Commitment Control Update
FY 2016 Ending Balance Review
FY 2017 Beginning of the Year Process/ Balance Forwards
Commitment Accounting Update
Salary Encumbrances
Department Budget Table (DBT) Year-End Deadlines
Faculty Fringe Summer Reallocation Process
Year-End Maintenance
Q&A

3. Lapse Guidelines Recap

4. Lapse Guidelines – Educational & General Funds
Disposition of E & G balances are based on each Vice President’s direction for their areas
Prior to Year-End Budget Office will provide year end balance reports to Primary Financial Area Reps for processing budget transfers, as appropriate.
E&G remaining balances should be zero
Any negative balances need to be addressed and cleared
Certain accounts are not subject to the lapse, including VP reserves, GIT & lab fees
Most Special Items must have their FY 2016 funding fully expended by August 31. This includes SBDC, Core Research, ITC, etc. The only Special Item that is allowed to fully expend their funding by the end of 2nd biennium, 2017, is SALSI.

5. Lapse Guidelines - Designated Funds
Disposition of centrally funded Designated (DT) account balances are based on each Vice President’s direction for their areas:
President’s Office – department balances at year end will roll forward
Academic Affairs – department balances in E&G cost centers will lapse to VPAA reserve and designated balances at year end will roll forward.
Business Affairs – department balances at year end will roll forward
Community Services – department balances at year end will roll forward
External Relations – department balances will lapse to VP External Relations reserve
Research – department balances will lapse to VP Research reserve
Student Affairs – department balances will lapse to VP Student Affairs reserve
Certain Designated Cost Centers are not subject to lapse and roll forward:
Most designated accounts sourced from fees and other revenue sources
Official Occasions sourced from interest on time deposits
Facilities & Administration (F & A) cost centers

6. Lapse Guidelines – All Other Funds
Remaining Balance – Service Centers
Not subject to lapse (carry forward 100%)
Any surplus/deficit exceeding 10% requires special exception and approval of AVP-Financial Affairs
Monitored by Controller area
Subject to Service Center Policy for compliance with OMB Circular A-21, grant Uniform Guidance rules.
For questions please contact: Rosa Varela x4225
Year-end balances in the following funds are not subject to lapse (carry forward 100%):
Grant and Contracts (funds )
Auxiliary Enterprise (funds )
Gift/Restricted Funds (funds 5500 and 5600)
Plant Funds (funds 71xx)

7. Commitment Control Update

8. FY 2016 Ending Balance Review
Budget Office will provide FY 2016 Budget Balance Available Reports to Primary Financial Area Reps for review. Reports show ending balances including/excluding encumbrances and pre-encumbrances. July 13th
YTD June 2016 was sent to Primary FAR Reps for review and to clear negative balances
Week of August 8-12th
YTD July 2016 and MTD July 2016 (estimate one month expense)
Primary FAR members will coordinate budget transfers to clear negative balances and zero out E&G balances, as deemed appropriate. All transfers must be completed no later than Sept. 8th.
September 8th
E&G Benefits will be fully funded centrally for FY 2016
September 12-14th
YTD August 2016 based on Accounting’s first Year End Close Schedule

9. FY 2017 Beginning of Year Process
August 22nd - Budget Office completes maintenance of FY 2017 Budget Definitions:
Budget Period 2017 will be open
Zero budgets will be added to budgetary account A4000 (M&O). This will establish budgets for correct chartfield combinations.
Control will be set to allow transactions to go through without funds, allowing Purchasing and Travel to complete the roll forward processes. However, transactions with incorrect chartfields are not allowed to post.
August 31st – Budget Office loads Original Budget 2017
Hyperion PSPB journals will be posted to Commitment Control
OPE Original Budgets are recorded to various budgetary accounts
OPE Budget Transfer Out are recorded to budgetary account A7000 and will net to zero (Revenue Generating Cost Centers)
OPR Original Budgets are recorded as TOTRV (budgeted revenue) and RTRFS (budgeted transfers)

10. FY 2017 Beginning of Year Process
September 1st - Budget Office completes maintenance of Associated Revenue Budgets in FY 2017
Associated Revenue Budgets will automatically allow spending authority up to the amount of revenue recognized.
Associated Revenue Budgets will be based on cost centers currently associated
Revenue is associated for the following cost centers:
Gift cost centers
Any cost center that generates revenue and does not have an Original budget.
Any new association should be requested through the budget office for the new fiscal year.

11. FY 2017 Beginning of Year Process - Balance Forwards
STEPS:
Budget office will complete final budget transfers of Centrally funded E&G and Designated cost centers before Accounting Office Close to meet year end deadlines.
Following Accounting Office Close, Budget Office will true up OPE Spending Authority based on the OPR 2016 Revenue. The spending authority adjustments will be reflected in the OPE Budgetary account A The Estimated Revenue on the OPR side will also be adjusted to reflect the amount recorded in Recognized Revenue.
After Accounting Office completes the final FY 2016 close (October), the Budget Office will load Balance Forwards for all fund groups, except Grants and Capital Projects.
Balance Forward journals are posted as an adjustment to budgetary account A4000 with an effective date of 9/1.

12. FY 2017 Beginning of Year Process - Balance Forwards
FY 2016 Remaining Balance calculation will be computed similar to last year. Budget will exclude Encumbrances and Pre-Encumbrances in the computation of Roll Forward balances by cost center. Balance Forward = OPE Spending Authority - Encumbrances (PO’s & Travel) - Pre-Encumbrances
Budget Controls are turned ON for transaction processing after Balance Forwards are loaded no longer allowing transactions to post if budgetary account does not have sufficient funds (exceptions are salary accounts)

13. Commitment Accounting Update

14. Salary Encumbrances
Monday July 18 salary encumbrances were reestablished for July and August. If you need a refresher regarding salary encumbrances please refer to this link
FY 2016 Residual Salary Encumbrance will be dis-encumbered no later than 8/31/2016
FY 2017 Salary Baseline Encumbrance Date will take place prior to 3rd week in September

15. Department Budget Table (DBT) for Employees paid Monthly
The last monthly pay cycle to process retro funding requests for FY 15/16:
Pay Period End August 31st – All DBT’s are due by 5PM August 19TH
NEW THIS YEAR: DBT TRANSACTIONS FOR FY15/16 FOR ALL MONTHLY EMPLOYEES WILL BE PROCESSED THROUGH AUGUST 19, 2016 ONLY.

16. Department Budget Table (DBT) for Employees paid Semi -Monthly
There are three remaining semi-monthly pay cycles to process funding changes (both retro and future changes) for FY15/16:
Pay Period End July 31st – All DBT’s are due by 5PM July 28th
Pay Period End August 15th – All DBT’s are due by 5PM August 12th
Pay Period End August 31st – All DBT’s are due by 5PM August 30th
NEW THIS YEAR: DBT TRANSACTIONS FOR FY15/16 FOR ALL SEMI-MONTHLY EMPLOYEES WILL BE PROCESSED THROUGH AUGUST 30, 2016 ONLY.

17. Faculty Fringe Summer Reallocation
9 Month Faculty Fringe Double Deduct “Reallocation” for Summer Months
Moves employer share of deductions that was double deducted in March, April and May to the same funding sources the faculty is paid from for June, July and August “if” they are paid in the summer through a summer faculty contract
The target posting date for this journal entry is no later than 8/31/2016

18. Year-End Maintenance
Multiple “Active” DBT’s – Normal Year-End Maintenance
Positions that have changed “owning” departments during FY 2016 will need have the old DBT inactivated.
This process is done at the very end of the fiscal year to avoid impact on any retro changes needed against the old “owning” department.
Target Date: Immediately after FY 2017 DBT Table Rolls

19. Questions? Thank you!