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FY15 Budget and Capital Project Planning

FY15 Budget and Capital Project Planning. Administrator and User Meeting February 2014. Dawn Roult and Judy Kennard. Agenda. Principles of Budget Planning Review of Budget and Capital Project Planning Information Budget Operating Revenues Allocation of New Money Revenue

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FY15 Budget and Capital Project Planning

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  1. FY15 Budget and Capital Project Planning Administrator and User Meeting February 2014 Dawn Roult and Judy Kennard

  2. Agenda • Principles of Budget Planning • Review of Budget and Capital Project Planning Information • Budget Operating Revenues • Allocation of New Money Revenue • Annual Budget Process Flowchart • Budget and Capital Project Planning Information • Budget and Capital Project Planning Schedule & Document Information • Budget, Financial, Space Planning & Cost Containment • Instructions & Spreadsheet Examples • Brief Review of the Business Objects Budget Reports • Budget to Actual Report Information and Report • Budget Upload Information • Budget Clearance Form • Question and Answers

  3. Remember Budget Principles: General Info • Budgeting by Category Groups (account codes) -- Faculty -- LEO -- Staff -- Temporary/Overtime -- Benefits -- Supplies -- Financial Aid • FY New Budgets are posted in Accounting Period 1 • FY Budget Transfersare posted in Accounting Periods 2 thru 12 • Transfers between academic and service units are rarely done • Service Units should consider Return On Investment (ROI) • Salaries are biggest opportunity for efficiencies

  4. Summary of Budgeted Rev & Expenditures by Fund

  5. Budget Allocation

  6. Campus Needs Business Operations Other Change In Tuition Revenue Allocate based on Budget Model % to Academic and Support Units Change in Fees Course Fees to Academic Units with Other Fees to Service Units Change in State Appropriations Allocate based on % of total budget Change in Other Revenue Investment income, Indirect Costs, etc. Allocation of New Money Revenue Academic Units CASL, COB, CECS, CEHHS Deans determine appropriate allocation method within unit Merit, Promotions, Fringe Benefits suggested • Debt • Infrastructure Maintenance • Utilities (Electricity, Natural Gas, Fuel Oil, Water & Sewer) • Student aid increase • Business operations recharge • Service Unit Benefits • Technology needs • Contingency • Indirect Cost

  7. University of Michigan – DearbornAnnual Budget Cycle Process

  8. Budget & Capital Project Planning The Budget & Capital Project Planning document is located On the Financial Services web site under forms or at: http://www.umd.umich.edu/index.php?id=forms New to the document is information pertaining to Cost Containment initiatives.

  9. Budget & Capital Project Planning Current Status • Budget documents distributed in early February 2014 • Kick-Off Meetings held with every area in January and February with all Senior Officers and Deans

  10. Budget & Capital Project Planning Service Units: Document Section

  11. Budget & Capital Project Planning The Budget and Capital Project Planning spreadsheets • Indicate a multiple year process to assist and identify future financial planning needs and/ or planning objectives. • Service Units- Attachment B & D • The forecast section must be completed. • The forecast information provides a future direction to support the unit’s operational goals and needs. • The numbers in the spreadsheet support the narrative requests.

  12. Budget & Capital Project Planning What does the Budget and Capital Project Planning cycle accomplish? • Compilation of strategic initiatives • Collective determination of priorities • Transparency in funding and decision making • Analysis of units in whole *Financial Services can help with details

  13. Budget & Capital Project Planning • Integral in short-term and long-term capital planning • Forward thinking • Budget Model philosophies incorporated Capital Project Planning

  14. Budget & Capital Project Planning Capital Project Planning • This process is designed to provide a consistent, transparent process for submitting, planning, and approving construction and renovation projects. It will assist your unit as you develop both your short-term and strategic development plans. • The feedback you receive from budgeting and space planning will also give you more accurate information to use in financial planning and scheduling for a renovation or space alteration to align with your programmatic needs. Capital Project Planning, Design and Construction Requests:

  15. Budget & Capital Project Planning Space Planning • Units are asked to report on planned changes in facilities, including renovations, remodeling, and changes in space use or assignments for each of the next two fiscal years, FY 2015 and FY 2016 (page 6-7). • In addition, please provide a list of potential projects for the following 3 years—FY 2017, FY 2018, and FY 2019—so that we can begin work on aligning our 5-year rolling capital plan with the mission and strategy of the University. Capital Project Planning, Design and Construction Requests:

  16. Budget & Capital Project Planning Space Planning • Space allocation or renovation requests will need to clearly identify the value for investing University resources and explain how the request is aligned with the mission of the University of Michigan-Dearborn. • Questions about the space, design and construction process, please contact: • Carol Glick, Executive Director of Facilities Operations, at 3-6751 • or • Kathleen Pepin, Director of Facilities Planning, at 3-5045. Capital Project Planning, Design and Construction Requests:

  17. Budget & Capital Project Planning Financial • Includes a financial model relative to FY 13 base budget • Prediction formula driven – Combination of: • Last year’s financial information for remainder of FY • This year’s financial information • Inflation factor • Allows Financial Services and departmental administrators to collectively work with same financial information • Details can be provided by Financial Services

  18. Budget & Capital Project Planning The University of Michigan – Dearborn Budget and Capital Project Planning FY15 & FY16 Attachments Instructions

  19. Service Unit-BA General Fund Operating Budget Status Report For FY2014 as of December 31, 2013 Note: The numbers in the multi-year strategic plan should support the narratives in tabs “D” (Budget Requests).

  20. Detailed Budget Requests FY2015 Tab D.1 - SU Bud Rq 2015

  21. Detailed Budget Requests FY2016 TAB D.2 - SU Bud Rq 2016

  22. Budget and Capital Project Planning FY 2015 & FY 2016 Cost Containment Data Form What Is Cost Containment? It is how we find ways to optimize the use of limited revenue in order to innovate, invest in and advance the excellence of the University. This new process will document unit’s planned activities to support new initiatives and goals, by keeping costs down only to necessary and intended expenses in order to satisfy financial targets.

  23. UM-D Cost Containment • The University of Michigan-Dearborn Cost Containment initiatives: • Approximately $6M during the past 8 years in the following areas:

  24. Cost Containment Opportunities Cost Containment Looking forward: • Continue to identify cost savings initiatives at the department level. • As financial challenges continue, we should explore all options to maximize our limited resources. • Continue to explore conserving energy and other savings that will reduce costs.

  25. Cost Containment Opportunities

  26. Budget and Capital Project Planning FY 2015 & FY 2016 Cost Containment Data Form

  27. General Fund Budget to Actual Report • Budget to Actual Report • Review report for Month-End closing procedures • Updated on the 10th of each month, or the next business workday

  28. General Fund Budget to Actual Report Note: The projection calculation is only a guide; it doesn’t factor encumbrances

  29. General Fund Budget Upload Worksheet • The Budget Load file is utilized when transferring budget dollars from one department or unit to another. • A one-time transfer is not considered a budget ledger transfer DR = (expense) a negative number such as: (16,270.00) CR = revenue a positive number such as: 16,270.00

  30. Budget Load Transfer Worksheet Budget Transfer Scenario Scenario One: A department would like to transfer General Fund Budget dollars between two programs, and between two budget categories in their budget. How should this be done and can this be done? i.e. from supplies to salary and or from salary to salary • Answer: • Send an email request to Financial Services (including: What, why, and how much) • Financial Services will prepare the Budget Upload Worksheetand submit the upload into the ledger. • Judy Kennard handles budget transfer requests. • Stacy Eglinton handles financial journal entries.

  31. Budget Load Transfer Worksheet Budget Transfer Scenario Scenario Two: A department wants to transfer $60,000.00 as a one-time with an effective date. How should this be done or is this a budget transfer? • Answer: • Contact Financial Services for assistance if needed. • This is a one-time transfer and is not considered a budget transfer to the budget ledger. • A Journal Entry should be completed and forwarded to Stacy in Financial Services. • Judy Kennard handles budget transfer requests. • Stacy Eglinton handles financial journal entries.

  32. Budget Clearance Form • Budget Clearance Form • Required for any new hire (open position or new position) or change in salary for an existing employee. The purpose is to notify Financial Services and HR of the intent to hire. • Financial Services reviews the department’s plan for funding the position.

  33. Next Steps • Determine Strategic Plans for Department • Compile Narrative • Prioritize Needs (Attachments D for FY15 and FY16) • Compile Financial Outlook to Support Narrative (Attachment B) • Determine Capital Project and Space needs • Document Cost Containment Achievements and Plans • Please Remit Package by Groupto: Dawn Roult at dkross@umich.edu or 1161 AB

  34. Review • Principles of Budget Planning • Budget Cycle • Budget and Capital Project Planning • General Information • Documents • Cost Containment • Budget to Actual Report • Budget Transfers • Budget Clearance Form • Next Steps

  35. Where can I find budget documents for transfer of funds between programs? When a Budget transfer has been completed, when will it post to the Budget to Actual Reports? Does the BCF need to have funding approval prior to posting a position with HR? Who in Financial Services should I contact on how to complete the BCF? When should communication on budget needs begin within colleges/departments/units to Administrators? Where can I locate todays PowerPoint presentation? http://www.umd.umich.edu/index.php?id=rpts Questions and Answers

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