Budget Workshops February 4th & 6th, 2014
Agenda • Introduction • Josette Shaughnessy, CPA • AVP Budget & Financial Services • Planning for Improvement • Dr. Dolores Gross, Director • Institutional & Community Planning • Budget Development Processes • Laura Tellez • Budget Director
Mission Statement Our office plans and coordinates budget activities, produces the annual budget, various analyses and reports District-wide and to external agencies. These services empower management to effectively direct its human and financial resources.
Important Dates October 25th Budget Forms 1 and 2 were emailed to Budget Heads February 12Budget development instructions will be posted on the Budget Office’s web site ___________ Date budgets are due to your respective (fill in date) executive level’s office March 7thBudgets due to the Budget Office
Budget Office Services • Prepare the Operating Budget and Coordinate the Adoption of the Tax Rate with External Agencies. • Conduct Annual Budget Workshops and Present Semi-annually at Effective Management Series Workshops. • Guide Budget Heads to Prepare Budgets and Assist in Resolving Budget Issues.
Budget Office Services (cont’d.) • Prepare Various Analyses and Reports to Support the Institution’s Financial Decisions. • Report Monthly Salary Savings and Process Various Budget Related Banner Forms. • Maintain Budget Office Website: www.epcc.edu/BudgetOffice
Budget Development CalendarHighlights February Conduct Budget Workshops March Budgets are due to the Budget Office April Budget Meetings with President and VP’s May/June/July Board Meetings/Workshops/Presentations July or AugustBoard adopts budget; then tax rate September 1 New fiscal year begins
Banner Codes • Fund - describes the type of resources: Institutional (11000), Self-Supporting (12000’s) & Physical Plant (13000) • Organization (Org) - represents department, program or discipline: Ex: Police Department, Americana Language Program, English VV • Account - describes the object of expenditure: Salary Pools, Supplies Pool, Travel Pool, Equipment Pool, etc. Example: FundOrganizationAccount 11000 61001 71100 (Institutional) (Police Department) (Supplies Pool)
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Executive areas are required to remain within their total current budget. New orgs may be created and other orgs closed to allow for reallocation of funds. • Reallocations are permitted within executive areas among orgs, accounts or budgetary pools. • Full-time salaries are not subject to reallocation unless specifically approved by the President. Reallocations
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • A new full-time position created from other funding sources must be approved by the President. • Excess in Overhead budgets can only be reallocated to other Overhead budgets unless approved by the President. • Funds must be cross referenced from where they come from to where they went. Reallocations (cont’d.)
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Positions vacated during the fiscal year are lowered to entry level. Vacant positions are budgeted in the recruitment pool of the respective Vice President. • Only the entry level value of a vacated position can be reallocated. Savings remain in the District unless authorized by the President. Vacant Positions
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Travel budgets are “pooled.” There is no distinction between in-town, out-of-town or foreign. • Actual expenses incurred during the year will be charged to the corresponding travel accounts. • Local travel expenses include reimbursement for mileage, conference registrations and parking expenses. In-town mileage reimbursement is currently 50.5 cents per mile. Travel
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • An item less than $5,000 should be budgeted in the supplies pool account 71100. • Supply budgets are “pooled.” Actual expenses incurred during the year will be charged to the corresponding supply accounts. Supplies
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Capitalization policy defines equipment as any single item with a unit cost of $5,000 or more. • Equipment is expected to have a useful life of at least one year and is not a consumable product. • The $5,000 minimum does not apply to library books. Equipment
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Exceptions to the $5,000 threshold are items such as printers, fax machines, scanners, etc. For a detailed list, contact Property Management Control. • These items should be classified as fixed assets regardless of the cost. • Equipment purchases must be justified to the appropriate Vice President. Equipment (cont’d.)
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Budget heads should refer to the guidelines to determine if a program is self-supporting. • These programs should generate sufficient revenues to fully offset their annual expenses. • All salaries positions assigned to the programs must be budgeted in these orgs. Self-Supporting Programs Budget
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • The same planning guidelines apply to these programs as institutional budgets. • Self-supporting programs should have a realistic revenue amount. • An overhead recovery rate of 15% needs to be included based on the actual revenue. Self-Supporting Programs Budget (cont’d.)
Budget Development Guidelines2014-15 Rollover of 2013-14 Budget • Grant accounts are budgeted by line item not “pooled”. • For more information regarding grants, please contact the Grants Management Office. Grants Budget Transfers • Budget Transfers initiated during the current fiscal year are only temporary so continued funding must be addressed either thru reallocation or new request processes.
Budget Monitoring Tips • Budget Heads should review the Budget Status by Org Mgr, Labor, and Orgn Detail Activity reports sent from General Accounting by e-mail after closing. • Check the labor report to confirm that the employees listed are assigned to your department. • Report any issues on monthly reports as they occur. Expenditures are handled by General Accounting. Budgets are addressed by the Budget Office.
Budget Monitoring Tips (cont’d.) • Follow-up by monitoring your budget and expenditure reports to verify the corrections were made. • Report any change in budget head or personnel timely by submitting the appropriate forms, e.g., Personnel Action Record, Budget Office Banner Maintenance form, etc. • As reports are received each month, post the current month’s expenditures by account using the Budget Tracking Worksheet as a tracking tool.
Budget Tracking Worksheet Employee’s individual salaries can be posted and monitored monthly. For example, if there are no personnel transfers, retirements, terminations, etc., the salaries should be consistent each month. The worksheet may also be useful in tracking spending patterns which may help to plan your budget for the next fiscal year. EXAMPLE
Budget Development Steps • Review Budget Form 1 (Expenditure Detail) and Budget Form 2 (Salary Detail). • Note any changes in red ink, initial and date. • If there are no budget changes, initial and date to acknowledge that the forms were reviewed and indicate “no changes.” • Cross reference funds from where they come from to where they went. BudgetHeads:
Budget Development Steps (cont’d.) • Prepare a Banner Fund/Organization/Account Maintenance Form to set up a new organization number or self-supporting program. (Contact General Accounting for assistance). • Attach a completed Budget Form 1 and 2. (Blank forms are accessible thru our website). • Submit the original authorized form(s) to the Budget Office. New Fund or Org
When Creating Two Orgs From One • Submit a Budget Office Banner Maintenance Form to our office to update the approval queues. • A Personnel Action Record (PAR) needs to be submitted to Human Resources to reflect the changes in Banner. Additional Steps
Non-Sufficient Funds (NSF) Flags • The purpose of Non-Sufficient Funds (NSF) Flags is to prevent deficit spending when creating requisitions in the Banner System. • Prior to starting a requisition, access the Budget Availability Status Form (FGIBAVL) in Banner to check your balance. • If the amount requested exceeds your budget pool balance or if there is no budget pool, you have insufficient funds.
Non-Sufficient Funds (NSF) Flagscontd. • If the requisition is submitted for approval, the Budget Head will see a “Y” in the NSF box on the approval form FOAUAPP when the NSF condition exists. The Budget Head cannot override the NSF flag. The requisition should not be approved. • If the Budget Head approves the requisition without funds, the Purchasing Department will approve it regardless of the availability of funds; however, it will go to the NSF Queue. • The Budget Office has access to override the NSF flag with the appropriate approvals.
Non-Sufficient Funds (NSF) Flags contd. • Institutional accounts can be overridden if the appropriate Vice President explains the reason for the deficit. • Self-supporting accounts can be overridden if sufficient revenue becomes available above the budgeted amount to cover the expenditure. For further assistance, please contact your Accountant in General Accounting. • Any NSF requisition(s) pending needs to be resolved before the end of the month in which it is submitted or it will be disapproved and returned to the requestor.
Non-Sufficient Funds (NSF) Flagscontd. • The requisition has to be resubmitted by the requestor with the current date and ensure that there are sufficient funds before resubmitting it; otherwise, the requisition will go to NSF again. • If the Budget Office overrides the NSF flag, that line item will become negative. • The funding issue can be resolved through reallocation from another account or another org. A Budget Transfer should be submitted to the Budget Office for processing before initiating the requisition.
Budget Office Banner Maintenance Form • The purpose of this form is to add or delete access to Banner funds and orgs. • Access allows you to process purchase requisitions and/or monitor budgets and expenditures. • Submit a form when there is a change in budget head, transfer, termination or retirement within your department. • All requests for Banner access related to grant funds and orgs are completed by the Grants Management Office.