1. 1  Introductions  Budget Website  Budget Allocations  Salary Planner  Merit Guidelines  Faculty, Staff, Pool Extracts  Spring Budget Downloads  Ability to run reports for ALL extracts  Fringe Benefits  Chart Change Impact  Program Codes  Distributed Charges  Transfers  Finance Budget Development  Non-Labor Budgets  Activity Code budgeting  Summary FOP budgeting  Budget Allocation Tool  Query Hierarchy  Restricted Fund Budgeting  Endowed Chair Budgeting Fiscal 2014 Budget Training

2. 2 Budgeting 101  Finance Budget Development (FBD) – tool used to balance budgets and create/change non-labor, revenue and transfer budgets  Salary Planner – tool used to set job salaries and position budgets. Salary planner feeds the labor budgets in FBD  Job – represents the salary of an individual  Position – represents the budget for a given role at the University. Jobs and Positions are linked, and it is often said that, “jobs fill positions”  Budget Working Group (BWG) – group that establishes high-level budget assumptions and submits proposed budget to Board for approval  Increment – % increase for salaries and benefits relative to prior year budgets  Allocation – (Increments )+ (BWG Add-ons) + (any budget adjustments made in FBD)  Transfer – represents funding moving from one source (Fund-Org) to another (Fund-Org)  Distributed Charge – charges from one department to another unit that have been pre-approved in the Transfer Pricing Guidelines  Transfer Pricing – the practice of distributing a charge that is incurred by one unit, and subsequently charged to another. Units require approval to implement this practice (see Transfer Pricing Guidelines)  Unrestricted Funding – funds held centrally and distributed to units as a recurring (annual) resource  Restricted Funding – resources given to the University for a specific purpose (Grant, Gift, Endowment, etc)  Banner Finance – Source of FBD account line-item budgets. At the end of the spring budget process FBD data is loaded to Banner Finance to become the budget for the next fiscal year  Banner HR – source of job and position data for Salary Planner. At the end of the spring budget process Salary Planner data is loaded to Banner HR and creates the active records for the next fiscal year.

3. 3 Budget Website budget.nd.edu – will provide updates to campus on the B@ND process. Includes information on the following:  Campus Communications from the Budget Office  Timeline for Budget Process  Instructions Road maps Detailed instructions with screenshots Position Funding Calculator Merit Guidelines Fringe Rates Non-Labor budget rates Endowed Chair Tool Instructions Mass Allocation Worksheet

4. 4 Budget Allocations: Pre-approved increments, BWG add-ons, permanent budget adjustments after 2/13/2013. –Details available in FBD by accessing the Allocation Audit Report Budget Allocations

5. 5 Salary Planner – Merit Guidelines  Budget growth on all positions within a budget  Includes filled & open staff positions, student, contingency and other pooled positions  Determine merit increases based on performance  “Managers must assess employees’ performance for the year prior to calibrating merit for their area.”  Total dollar merit increase for staff may not exceed total allocated budget and must abide by the merit matrix  Use market reference range to gauge an individual’s merit increase  No communication of merit increase to employee until budgets are approved and confirmation email sent from HR Compensation

6. 6 FY14 Matrix Non-Exempt & Exempt Staff

7. 7 Salary Planner Screens

8. 8

9. 9  Things Departments/Divisions need to do:  Make sure increases meet merit and allocation guidelines  Notify Provost when faculty data is ready for auditing (if prior to 4/12)  Complete Performance Reviews by 5/15  Run Spring Budget Downloads throughout the process  Notify HR when staff data is ready for auditing (if prior to 5/22)  Things Provost will do:  Review faculty increase data  Things HR & Budget will do:  Run analysis on data to confirm compliance  Respond to any questions Salary Planner Audits

10. 10 Lump Sums / Student Compensation  Lump Sums  Zero dollars entered in Salary Planner  Put a note in Salary Planner Comment for employee  Allocate dollars and fringe to Contingency Account  Complete Additional Pay for Services form  Submit Form to HR on or before June 1  Student Compensation  Recommended rates for FY14  May use those rates prior to 7/1  Your budget dollars must support

11. 11 Salary Planner Audits

12. 12 Salary Planner Audits

13. 13 Salary Planner Audits Information will auto populate as FY13 reviews are completed Current information from Salary Planner Current information from Banner HR

14. 14  3 Extracts for Salary Planner  Faculty open 3/8 – 4/12 (FY14 FACULTY SALARIES)  Pools open 3/8 – 5/22 (FY14 POOLED POSITIONS)  Staff open 4/15 – 5/22 (FY14 STAFF SALARIES)  Salary Planner will feed salary changes in “real-time” to Finance Budget Development  FBD Fringe benefits will be re-calculated hourly based on changes saved in Salary Planner  Automatic update of Job Salary to Position Budget function reduces number of steps and errors Salary Planner

15. 15 Salary Planner “Roadmap”

16. 16 Fringe Benefits

17. 17 Chart Change Impact  Program Codes –2 digit codes to be mapped to 5 digits (Controller’s Office website) –Limited funds using multiple program codes (FOP Lookup – InsideND) –New program codes processed through the Controller’s Office  Distributed Charges & Cost Share –No longer using 76010 (Distributed Charges) –69011 (Payroll Distributed Charges) will still be available –No longer using 72121 (Cost Sharing) –No longer using 54900 (University Contribution) –No longer using 81070 (Transfers-University)  Approved Distributed Charge Hierarchy which matches Transfer Pricing guidelines  Utilize Transfers for movement of Funding –81071 – Funding Transfer-Out (debit) –81072 – Funding Transfer-In (credit)

18. 18 Finance Budget Development  Three tools provided in FBD: 1.Budget Worksheet: Balance budgets at FOP (Org level 8) detail. Adjust Non-Labor budgets Includes Activity codes in Summary section Audit detail provides increased transparency 2.Budget Query: Balance budgets using hierarchy. Allows user to drill down to find variances. 3.Budget Allocation Tool: Make permanent budget adjustments between FOPs to ensure allow budgets balance to zero

19. 19 FBD Road Map

20. 20 FBD Road Map

21. 21 Restricted Fund Budgeting  Optional for units, but highly recommended for units that rely heavily on these resources to fund their ongoing needs  Unlike Unrestricted budgeting, no allocation that requires balancing  Suggest budgeting to net zero, or positive (reflecting rollover funds to the following year).  For funds in deficit, use transfer codes to represent funding transfers –If a budget has a negative net budget (deficit), and no funding source is known at the time of budget, then leave as is  Use revenue account code 50000 (Beginning Balance Roll-Over) to budget “beginning balance” for funds rolling over from FY13 to FY14  First time budgets will start from scratch, but roll forward to future years

22. 22  Definition of Estimate – “A close guess of the actual value, usually with some thought or calculation involved”  Calculation FY14 Earnings Estimate = FY12 Actual Earnings * 1.03 * 1.03 * an exception is Endowed Chairs which will have a more precise estimate provided by Budget  Does NOT account for the following: –Endowments turned On/Off spending during FY12 or FY13 –Endowments that have received new gifts –Endowments that have been split (usually Endowed Chairs) –Endowments that have transferred funding In/Out  Endowment Funding Calculator  Please review your endowment income estimates for accuracy –You have more information on these funding sources –You have the ability to change the estimates in FBD Estimated Endowment Income

23. 23  Website http://budget.nd.edu  Contact Information Budget Office, Logan Anderson, 631-7132 Office of Human Resources, Theresa Dockery, 631-7894 Questions?