Operating Budget Orientation

1. Operating Budget Orientation June 25 and July 2, 2014

2. Agenda • Guiding Principles • Funding • Salaries • Template Overview • Budget Process Calendar • Resources

3. Guiding Principles • Use a common definition of “operations” • Budget and record operation expenses in operating accounts • Transfer funding to operating accounts

4. Guiding Principles Operations include expenditures that: • support research & teaching goals • occur on a regular or periodic basis • are essential to the department’s proper functioning • are oriented to the needs of the “many/whole” rather than the needs of “one/few” • are managed by the department/program

5. Guiding Principles Operations exclude expenditures that: • support individual faculty member’s research • are funded by grants & contracts • are major capital asset purchases • are true one-time expenditures

6. Guiding Principles When projecting expenditures consider: • historical data • incremental activities • strategic initiatives • cost rise

7. Funding • Dean’s Office Funding Allocation • base • incremental base • one-time (may include 9/1 special commitments, grad aid diversity, A-21) • Department Funding (if expense projections exceed Dean’s Office allocation) • designated funds • endowment income • expendable gifts

8. FY15 Funding Allocation

9. Salaries • Must be entered with the appropriate expenditure type to correctly calculate benefits • Staff salary amounts and OB project distribution must match information on Staff Salary Report because staff salaries are entered from the Staff Salary Report into Hyperion by position and PTA. Benefits are calculated based on the position job classification. • Funding is entered separately from the Budget Template Green section and must equal total expense by PTA.

10. Staff Salary Report

11. Grad Aid Budgets • Budget information from GAT, as of May 28, was loaded into your OB template just as it was with prior grad aid templates. • A BIG THANK YOU to everyone for all your efforts on grad aid budgeting this year! We really appreciate your thoroughness and attention to detail, and believe that this year’s budgets were more complete/accurate as a result of your efforts. • The same principles that were emphasized during grad aid budgeting apply to your overall budget • Budget at detail level when known • Look at trends to enter “macro” information

12. Template Overview • The OB template is an Excel workbook structured to help you create your budget • It has built-in formulas and inter-page links • It contains instructions, historical data, and current funding allocations • Do not enter expenses directly on the “Budget Summary” worksheet because expenses are automatically entered on the summary from the individual project worksheets • You may hide or unhide rows and columns to make the worksheet easier to work with but do not insert or delete cells, rows, or columns on the worksheet • Do not cut and paste or drag values from one cell to another, instead, copy and paste or delete and re-enter.

13. Template Overview Template worksheets include: • Instructions • Budgeting Aids • Funding • Worksheets for each operating project • GA Summary (if applicable) • Budget Summary • Summary Expenses • Detail Expenses • Commitment (if applicable)

14. Template Overview

15. Budget Process Calendar

16. Resources • Your FY15 OB template • Staff Salary report • FY15 Funding Allocation • Fund Authorizations (RM3 225) • Fund Statements (RM3 153, 154) • Endowment Income projections • Your Finance liaison

17. Operating Budget Orientation Questions or Suggestions?