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18/19 Detailed Budget Process Overview
Introduction Training Session
Office of Financial StrategyMarj Talbot, CPA, CA, CIA
Justine Marchuk, CPA, CMA
ICT Support ServicesDavid Greaves
Part I Introduction to university finances Position and salary review Non-salary budgeting with the Budget Development module
Part II Demonstration of the Budget Development module for non-salary
budgeting
Session Objectives
Planning Resource Allocation Budgeting
Monitoring and
TrackingForecasting
Reporting and
Analysis
Institutional Planning & Assessment Office of Financial Strategy
The Full Planning and Budgeting Cycle
Support University governance/stewardship
Mechanism for units to plan, manage, and monitor their financial resources
Includes operating allocation as determined from resourcing decisions (envelope)
Developing realistic budgets to reflect the unit’s planned activities for the upcoming year
Update and apply consistent budgeting principles across units (support institutional level reporting & analysis)
Detailed Operating Budget Objectives
U of S Consolidated
General Fund
Restricted Fund
Endowment Fund
Fund Structure
Operating Fund (1’s) Faculty, Admin & Support Salaries Utilities Support & Admin supply costs Pension & Benefit Plans Subsidiaries
Ancillary Fund (2’s) Book Store Food Services Residences Real Estate activity Sale of Utilities
Student Financial Aid Fund (3’s) Scholarship support
Research Fund (4’s) Tri-Council funding Provincial funding Sponsored research
Capital Fund (8’s) Capital assets Major renovations Improvements to capital
Permanent (6’s) Endowed chairs
Term (6’s) Limited term funds
Internally Restricted by the Board (6’s) E.g., Foreman funds,
Greystone Heritage
Op An
Cons.
G R EOperating Fund (1’s)
Funds that primarily receive operating allocation 1A - Central Institutional
e.g. utilities, legal, insurance 1B - Operating Budget (mainly 103)
e.g. college/unit primary operations, strategic funds
Funds that are primarily funded from other sources (not operating allocation) 1C - Externally Funded 1D - Future Employee Benefits 1E - Non-Credit Instruction & Events 1F - Fee for Service 1G - Special Projects 1H - Subsidiaries
$1,062M consolidated revenue in 2016-17OPERATING FUND
Operating Budget ($507)Other operating ($185)
OTHER FUNDSResearch ($186)Ancillary ($58)Student financial aid ($19)Endowment ($32)Capital ($76)
OPERATING BUDGET REVENUEProvincial Government Grant ($307)Tuition ($126)Other ($27)Investment income ($47)
University Revenue Overview
$507
$186$19
$58
$76
$32 $185
$307$126
$27$47
Central Operating Budget - AllocationAllocations from Central Operating Budget: Historic RangeFunding envelopes to revenue centres 55% - 65%Funding envelopes to support centres 20% - 25%Funding envelopes to institutional initiatives 5% - 10%Institutional expenses paid centrally 10% - 15%Total 100%
Expenses Covered – by TypeExpenses Covered by Operating Budget: Historic RangeSalaries and benefits 65% - 70%Other non-salary operating expenses 10% - 15%Externally contracted services 5% - 10%Utilities 3% - 5%Additional pension and LTD payments 1% - 2%Total 100%
Position and Salary Verification Worksheets (salary/benefits):
Issued to units: December 15, 2017
Due back: February 28, 2018
Budget Development (non-salary, revenues, recoveries, transfers):
Opened to units: December 15, 2017
Spending allocation budgets entered in late January 2018
Closes: February 28, 2018
Budget Upload into UniFi – June 2018 (after PCIP and Board approval)
Budget Packages to RCs – early July 2018
Summary of Key Dates
Key principles
Position and salary review
Non-salary budget modifications
Consolidate budget
Present to PCIP/Board
Upload to UniFi
Quarterly reporting
Prepare for next cycle
Detailed Budget Process
Discussion with
unit as required
Comprehensive Budgeting Accurate and complete budgets required in all relevant operating and ancillary funds
(1’s and 2’s) Budgets encouraged in student financial aid and research without grants attached
(3’s and 4’s) • Budgeted at individual CFOAPAL level• Does not have to be tied to prior year• For list of unit funds, refer to Crystal Report 4992
Must budget associated revenue sources (e.g. contracts, internal and external sale of goods/services, interfund transfers)
Fund clean-up and simplification – contact Financial Reporting
Key Principles
Salaries: Units to indicate which positions are funded from envelope
Must be within the 1B -103 grouping (exceptions: Huskie Athletics, Clinical)
For all other salary expenses, the funding source should be identified (fund balance, fee-for-service, recovery, or grant) Not funded from envelope (operating allocation)
Key Principles
Tools available on the Office of Financial Strategy website:
Salary Parameters/Full Position Costing• A summary of position costs based on minimum and average
salaries• Salaries with projected changes from collective agreements
are appliedhttps://www.usask.ca/fsd/resources/documents/budgeting/salary_parameters.pdf
Benefit parameters• A summary of applicable benefit rates, by employee group,
used for budgeting purposeshttps://www.usask.ca/fsd/resources/documents/budgeting/benefit_parameters.pdf
Position Budgeting – Salary & Benefits
Starting point: About-US download (Nov) into MS Access salary budget database and adjusted with known forecasted changes
The Office of Financial Strategy printed and distributed the Position and Salary Verification Worksheets for college/unit review on December 15, 2017. Unit verification includes: Validate FTEs – including vacancies (TBA’s, turnover, attrition) Validate CFOAPALs Validate designated incumbent Validate reasonableness of salary and benefits, including unknown salary increases
pool and position turnover pool (accounts 60301 and 60302 in main fund/org) Validate funding status (envelope vs. recovery, etc.) Any changes required and return to the Office of Financial Strategy by February 28
Note: for actual changes in About-US, colleges/units must submit EJSs to ConnectionPoint
Position and Salary Verification
Position and Salary Verification – Example
College/unit can request electronic copy of worksheets for analysis/review (must submit hardcopy version back to the Office of Financial Strategy)
The Office of Financial Strategy reviews and updates Access salary budget database
Discussion with units as required
Position and Salary Verification
Prior year budgets have been rolled forward in Self-Service Budget Development module as a starting point for 2018/19
Account 59008 – rolled forward permanent operating allocation budgets
Account 59009 – zeroed out temporary operating allocation
Interfund Transfers (800xx) – zeroed out (Interfund Transfer Form)
Non-salary Budgeting
Non-salary Budgeting
Units enter changes to non-salary budgets
Exceptions: units should not budget these accounts in Budget Development 57005 (spending allocation) 6xxxx (salary/benefits accounts)
Discussion with units as required
Non-salary Budgeting
Resource allocation and detailed budgeting are two separate, yet interrelated, processes
Ongoing operating allocation provided as an “envelope” that supports the core teaching and support activities of the unit Starting point: budget based on 17/18 board approved budget adjusted for
tuition which becomes your base budge for 18/19, upon which your reduction is calculated
Contact IPA for any questions about resource allocation
Envelope Funding
Account 59008 – Operating Allocation - Permanent: is used to provide ongoing envelope funding (operating allocation) to units – breakdown by CFOAPAL Provided on a monthly (1/12) basis; in FAST, budget column shows full-year
amount
Account 59009 – Operating Allocation - Temporary: does not denote envelope funding as it’s not provided on an ongoing basis. This represents centrally-approved incremental funding for specific initiatives for a finite period of time.
Envelope Funding
Allows RCs to review summarized salary and non-salary budget (and actual) information
Salary and Non-Salary Reports• 11718 – Detailed Budget Summary (review report 4992 for list of all funds)• 11727 – Operating and Non-Operating Funds
Non-salary Reports• 5007 – Budget Comparison by Fund• 5008 – Budget Comparison by Organization• 5009 – Budget Comparison by Account
Variance Analysis Report• 11933 – Quarterly Variance Analysis
Note:• Crystal report non-salary data is updated nightly until Budget Development closes• Crystal report salary data is updated every Friday (for reports 11718 and 11727)
Budgeting Reports
Consolidating 18/19 budgeted results by unit
Occurs after unit’s completion of salary and non-salary budgeting (March-April timeframe)
Reporting at aggregate unit level and by individual fund type Available to units as Crystal report Compare with last year’s (17/18) actual results Assess completeness and reasonability Any significant errors or omissions?
Discussion with units
Validation and Review
FAST View of Budget Upload – ExampleAcct Title Month
ActualYTD Actual O/S
CommitmentsYTD Total Activity
Annual Original Budget
$ YTD Variance
Budget Fav/Unfav
Revenue59008 Operating Revenue Alloctn-Ongoing 40,733 40,733 488,79859009 Operating Revenue Alloctn-Temporary 10,000 10,000 10,000
Subtotal 50,733 50,733 498,798Total Revenue 50,733 50,733 498,798
Salary Expenditures60001 Faculty (USFA) 218,63360003 Sessional Lecturers (CUPE 3287) 106,19460004 Senior College Administration 100,00060202 Administrative Employees (ASPA) 44,00060203 Support Staff (CUPE 1975) 19,00061001 Canada Pension Plan 061002 Employment Insurance 061003 Dental Plan 061004 Extended Health Care 061005 Group Life Insurance 061006 Registered Pension Plan 061008 Workers' Compensation 061009 Physical Activity Centre 061011 Benefits Budget (budget only) 68,745
Subtotal 556,572Total Labour 556,572
Non-Salary Expenditures70001 Office Supplies 2,00070101 Printing 10,00070201 Telephone and Fax 5,00070202 Postage 4,00070203 Courier, Delivery & Freight 1,00070204 Communications - Other 4,00070601 Advertising & Promotion 5,00070611 Membership Fees & Dues -Individual 50078002 Internal fees for services -89,274
Subtotal -57,774Total Expenditures 498,798Total Revenues Less Expenses and Transfers 0
Quarterly forecasting of actual results to year-end
Quarterly reporting – actual results versus budget
Prevent year-end surprises and identify potential issues for action (discussion with units as required)
Subsequent budget adjustments: a) Allow BD2 adjustments, after Board approval of original budgetb) Viewing in FAST: original and adjusted budget
Can transfer actual YTD operating allocation (59008 and 59009) between a given unit’s CFOAPALs via JV6 or JF6 rule code during the year
Quarterly Variance Analysis and Forecasting
2018/19 budget communications will be posted on the Budgeting page as they are available
Includes training materials and other budget-related resources
https://www.usask.ca/fsd/colleges_depts_research/budgeting.php
Website Information
Office of Financial Strategy
Institutional Planning & Assessment:
UniFi Training and Support
Contact
Kris McWillie Manager 966-2798 [email protected]
Marj Talbot Financial Analyst 966-2206 [email protected]
Justine Marchuk Financial Analyst 966-1674 [email protected]
Gordon Campbell Financial Analyst 966-4624 [email protected]
Jodi MacMillan Financial Analyst 966-4770 [email protected]
Jen Freeman Manager 966-1828 [email protected]
Tiffany Lepage Financial Analyst 966-1824 [email protected]
David Greaves Training Specialist 966-2222 [email protected]
