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FINANCIAL LIAISON MEETING JUNE 2009. FY10 OUTLOOK AND PROPOSED BUDGET PLAN. FY09 Funding Shortfall. AUBURN UNIVERSITY-Auburn Campus Proposed Budget Plan. AUBURN UNIVERSITY-Auburn Campus Proposed Budget Plan. Budget Strategy. Continued focus on strategic plan
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FINANCIAL LIAISON MEETING JUNE 2009
Budget Strategy Continued focus on strategic plan Enhance quality and reputation and maintain progress of past years Reduce costs of operations where possible Numerous budget and cost reduction initiatives underway Inclusive budget process 26 member Budget Advisory Committee with broad representation Various meetings/discussions with Deans Senate, Admin and Prof, Staff discussions Solicited input on cost cutting, revenue enhancement Internal and external messages from President Permanent Budget reductions – all divisions
Current Initiatives Strategic Sourcing project – IT hardware & peripherals, office related products, travel, scientific supplies, cell phones and mobile devices (more shortly from PPS) New contracts with discounts, rebates, bonuses, scholarships Equipment threshold Fringe benefit rate project and benchmarking– currently underway with October 1 implementation Review of special budget allocations including ICRE, summer incentives, etc. Life insurance and LTD cost reduction Facilities prioritization process
Budget Guidelines – All Divisions No salary increases for 2nd consecutive year Promotions will be funded Mandatory and essential allocations Continuing and one-time budget reductions
Controller’s Office DOCUMENT CODES
Procurement & Payment Services Results of Phase I Cost Reduction Initiatives Strategic Sourcing
Cost Reduction Initiatives Strategic Sourcing project – Phase I is complete Office supplies IT hardware Travel Involved review of spending habits, renegotiation and bid of contracts, policy adjustments, demand management Cost savings will be retained in units, allowing for better opportunity to manage budget reductions Contract vendor show targeted for early fall
Office Supplies and Related Products Awarded to OfficeMax Includes paper, toner and office supplies (Toner portion of contract will go into effect Nov. 1) Core list and non-core discounts (63% WAD off of a core list of 400 items) Vendor providing significant financial incentives “Retail Connect” cards and discounts for personal spending provided Webinar training plus Vendor kickoff show on July 14 at 9:00 AM
IT Hardware Renegotiated contract pricing with Dell Desktops/laptops Larger number of bundles “AU Best Buys” (42% off of any bundle)
IT Peripherals Awarded to GovConnection Includes printers, memory, monitors, keyboards/mice, storage devices and systems, video projectors Volume Rebates “Best Buy” printers are being established
Car Rental Awarded to Enterprise/National (contract # XZ55028) Includes Local, Domestic, and International rentals Deeper discount pricing available for local rentals 5,000 locations throughout the US Greatest savings achieved by renting compact & standard/midsize class vehicles Current personal “preferred” status with other vendors will be honored/matched Vendor kickoff event- week of July 6
Benefits of Contract Usage Achievable 1st year savings of between 11%-13% or $1M - $1.2M by utilizing preferred vendor contracts Electronic ordering will be available via PPS webpage and/or AU Access Financial incentives and discounts will help offset current and future budget cuts The higher the spend volume with preferred vendors the greater the volume rebates When preferred vendor contracts are used, AU can easily track spend to allow for future price negotiations with vendors
Cost Reduction InitiativesStrategic Sourcing Phase II Overview
Phase II Overview Strategic Sourcing project – Phase II began late May AU Travel Processes & Procedures Preferred Airline Agreement Preferred Hotel Agreement Scientific Supplies
BANNER REPORTS Management Reporting
Banner New Reporting e~Print Reminder that base reports are available monthly in e~Print which allow you to focus only on 10x001 base funds within your division, executive level or college. The report names are: Base Budget Balances (excluding benefits 62xxx) Base Budget Balances Labor Only (60xxx & 61xxx) Base Budget Balances Operational Expenses
New Reports Continued GL-SL Comparison Report Allows Budget Services to routinely identify variances that exist between a general ledger fund balance and an operating ledger available balance. Review covers numerous fund types but ignores ones where it is likely the fund balance and available balance should not be in sync (example – auxiliaries).
New Report Similar to FRS 045 REPORT NAME: FZODOS1 This report has been in the works for over a year and has gone through numerous revisions and tests. We are ready to roll it out and am hopeful you will find the report useful. Available at month end in e~Print by College, School or Department Organizational Hierarchy. If college or school is selected, the report will accumulate funds by type at the department level and summarize by college at end of report. If multiple divisions are found (should not be), the information will sort so each division is displayed.
FZODOS1 Fund information displayed includes: Unrestricted - (10x001-10x004) fund types 1A-1D Contracts & Grants – fund types 2A-2D Appropriations – fund types 2E, 2F, 2S, 2T, 2U Other Restricted – all other 2x fund types Plant – typically unexpended plant/construction R&R – fund types 9E-9H Each section above will have unique headers providing unique information based on the type of fund
FZODOS1 A lot of information on this report. Stretching it across the page makes it appear small. When printing out this report, go into printer properties and change the page size to legal (8 ½ x 14). On most printers you can also zoom to about 110% to make the print a little larger.
FZODOS1 Tips Check to see if multiple divisions are present. Would typically suggest a problem. If pulling division 1 org, you would only want to see division 1 fund (rare exceptions). The report works off of most current organizational hierarchy In C&G section, fund balance at month end will usually be zero as revenues are booked to match expenditures made with reimbursement from agent to follow. Report focuses on budget versus spending. C&G and Plant fund sections use the grant ledger Other Restricted section available balance and fund balance should match. If not, review of details is necessary. Appropriations (2F) available balance and fund balance will differ by original budget. If different, will require investigation.
FZODOS1 Go to e~Print Report for further explanation In our example we will review: the best way to extract the data sectional headings
What’s Next Fund Attributes – changes in process College Visits to resume Additional training options, new reports, workflow opportunities, etc. Example of benefits: Several months back, the Dean of the College of Veterinary Medicine requested a summary report be created that would show departmental balances. A new report is in the process of being written that many of you may find useful for your area. This report will provide by department within the college, base, other unrestricted, C&G, restricted, plant and R&R information. Each section within the report will show sources of revenue, carryover, expenditures and encumbrances, as well as supporting fund balance information. We are a couple of months away from completion. How can we assist your area?
