1. Using Unit Defined Commitments for Budget Forecasting and Reporting Barry D. MacDougall Administrative Information Services

2. 2 January 2006 Outline MAIS Overview Operating Budgets in MAIS Budgeting Process  Annual  Monthly Unit Defined Commitments Use Review of BusinessObjects Reports

3. 3 January 2006 MAIS Overview Three Major Functions Report to Associate Vice President - MAIS  MAIS – Administrative Information Services  BFIT – Business and Finance Information Technology  ITSS – Information Technology Security Services MAIS is a General Fund Unit but also receives funding from Business Operations Recharge and some rebill for services. 24 departments organized in 5 divisions. 340 staff members (regular, temps, and contractors) Total annual operating budget = $42.8m Salaries & benefits = 73% Software/hardware maintenance and equipment replacement = 22% General expenses, professional development, facilities, etc. = 5%

4. 4 January 2006 MAIS Operating Budgets Most departments budget to four categories:  Salaries  Professional Development  General Expenses  Salary Program (MAIS version of Annual Merit Program) Benefits expenses are budgeted and pooled centrally. Phones, computers, printers, facilities expenses, etc. are budgeted centrally. Common set of chartfields used by all MAIS units.

5. 5 January 2006 Budgeting Process Annual  Each unit prepares an annual budget in an Excel template.  Budget template includes a staffing plan by person / position, professional development, and general expenses (cell phones, copying, etc.)  Using the Excel files a UDC load file is created for the year – no rekeying. Monthly  Budget analysts track manager commitments and update staffing plans each month – adjusting UDCs as needed.  Budget reports are produced from BusinessObjects.

6. 6 January 2006 Unit Defined Commitment Use Future Expenses  Accounts Payable & Corrections  Commitment  Projections (salaries & recurring general expenses) Use specific accounts for funding and transfers:  Base Budget Transfers  Base Budget Adjustment Transfers (midyear)  One-Time Funding Transfer MAIS defined standard values for specific fields in the UDC to enable reporting.

7. Commitment Type COMM - Commitment APCR – AP / Correction PROJ – Salary Project and Recurring Expenses Description 1 (expense category for reporting) GENERAL = non-salary SAL = salaries End/Pay Date: Blank – remains indefinitely DD/MM/YY – expiration of commitment

8. 8 January 2006 Budget Reports MAIS Summary by Department for Leadership Department Report Package for Managers  Budget Summary by Program  Staffing Plan (Excel)  Listing of UDCs Commitments, APs/Corrections, Projections (staffing / recurring)  Expense Detail (Account Summary by Period) Other Reports (for reconciliation / updates)  Programs Used (for reconciliation)  UDC Details by Month

9. 9 January 2006 Wrap-Up Questions For more information: Barry D. MacDougall bmac@umich.edu 734-647-6902 bmac@umich.edu