Budget Manual 2011 v3 - University of Kentuckymyhelp.uky.edu/rwd/HTML/BPS/Budget_Manual_2011.pdf · Set deadline for departmental changes in SAP. ... (SMART), Academic Competitive

© 2010 UBO, University of Kentucky 1 UK Operating Budget Process 2011 Reference Manual

University of Kentucky Operating Budget Process Reference Manual

2010 – 2011

Overview

This Operating Budget Process Manual is designed to serve as a guide and reference material regarding all aspects of the preparation of the annual operating budget for the University of Kentucky. The budget manual format should provide a procedural roadmap for budget users.

What is BPS?

Implementation of BPS at UK The Business Planning Simulation (BPS) system is IRIS’s tool used for planning

and creating budgets. BPS uses the Business Warehouse (BW) environment.

BPS is fully integrated with BW and uses similar functionality.

Capabilities include:

Enable budgeting across modules (HR, FM, GM) Provide ability for reporting using BW Allow for extracting and retracting data from and to IRIS

Data (budget, employee, etc.) extracted from IRIS to the BPS InfoCubes.

Users write budget data and salary proposal data into BPS InfoCubes.

Reports are run from BPS InfoCubes.

After Board of Trustees (BOT) approval, budget data will be retracted to IRIS.

Budget to FM and GM; Salary proposals to HR, cost distribution to IT 1018.

Budget maintenance (transfers/revisions) will occur in FM and GM.


In BPS, the budgeting platform is by a budgeting area and each area has several layouts

There are two budgeting areas in the BPS system:

Campus Land Grant

There is one budgeting layout (per budgeting area) for non-position budgeting

Non-Position Budget There are five layouts (per budgeting area) for position budgeting and salary

proposals in BPS.

Regular Position Adjustment Reason Code Regular Position Budget Only Non-Regular Position Budget Non-Regular Position Salary

The procedures below describe the process and execution of the Campus budgeting layouts. The Land Grant layout works the same way.


Table of Contents Overview ............................................................................................................................... 1 What is BPS? ........................................................................................................................ 1

Implementation of BPS at UK ....................................................................................... 1 Budget Preparation Process Sequence of Events .............................................................. 4 Operating Budget Requests and Distribution of Information ......................................... 5 Budget Preparation .............................................................................................................. 6

Phase I Income and Non-Position Budget Preparation ...................................................... 6 Guidelines and Process: ................................................................................................. 6 BPS System Income and Non-Position Expense Budget Layouts ................................. 7

Campus Non-Position Budget Layout ...................................................................... 7 Fund Group 22 Income Estimates .................................................................................. 9 Fund Group 25 Income Estimates ................................................................................ 11

Phase II Regular Position Budget and Salary Proposal Process ...................................... 13 Guidelines and Process: ............................................................................................... 13

Regular Position Layout ......................................................................................... 14 Clinical Employees Who Are Part of the Hospital Salary Enterprise Structure .......... 18

Adjustment Reason Code Layout ............................................................................ 19 Regular Position Budget Only Layout ................................................................... 22

Clinical Employees Who Are Part of the Hospital Salary Enterprise Structure .......... 24 Editing Position Budgets after Salary Proposal Process is Complete .......................... 25 Benefits Budgets .......................................................................................................... 25

Phase III Non-Regular Position Salary Proposals and Budget Entries ............................ 27 Non-Regular Position Budget Layout .................................................................... 27 Non-Regular Position Salary Layout ..................................................................... 29

Budget Reports ................................................................................................................... 33 Report Definitions and Descriptions ................................................................................ 33

Position Cost Distribution Report ........................................................................... 34 Budget Income Estimate ......................................................................................... 35 Budget Expense Estimate........................................................................................ 36 Budget Reconciliation Report ................................................................................. 37

Other Information......................................................................................................... 38


Budget Preparation Process Sequence of Events The operating budget process is set forth by a series of events outlined in an operating budget calendar. The following lists the sequence for the major operating budget events. Set deadline for all recurring budget transactions (revisions and transfers) – intra-

area and inter-area. Set deadline for departmental changes in SAP.

Units and departments review the cost distribution percentages associated with the

cost object on the position master data record (Infotype 1018) for all employees. The BW Position Cost Distribution report can be used for this review (see reports section below).

UBO coordinates the copy over of the recurring budget data (from certain

commitment items), from current year to future year. Area Fiscal Officers request BPS system access for employees who will be making

budget entries. UBO coordinates the freezing of the salary data in order to take a snapshot of

current year base salaries for regular employees. UBO and Area Fiscal Offices prepare salary summary information for determining

the salary merit pool used to determine raises. UBO prepares budget decision package for budget discussions and decisions by the

President’s Cabinet. Salary and budget allocations and budget guidelines are provided to units for

preparing budget entries and salary allocations for the new fiscal year. Departments prepare income estimates, position and non-position expense budgets

in the time frame set forth in the operating budget calendar. Areas submit budgets to UBO in appropriate time frame.

UBO verifies and balances budget and prepares operating budget document for

Board of Trustees approval.


Operating Budget Requests and Distribution of Information

During the operating budget preparation process, the University Budget Office (UBO) requests and distributes information. The following lists the series of budget requests, distributions, and submissions: University Budget Office (UBO) distribution of following to Area Fiscal Officers

(AFO) Operating Budget Calendar Current year operating budget narrative and detail Current year recurring expenditure base Future year budget sheets for affiliated corporations budgets Future year budget sheets for Hospital budgets Future year budget sheets for Service Center/Recharge operations

University units requested to provide/prepare : Scholarship budget projections Recurring and major nonrecurring budget requests (items to be funded from

central sources) Estimated cost of faculty promotions for future year Estimated health insurance and other benefits Estimated indirect cost reimbursement income Estimated investment and endowment income Changes to payroll taxes, including miscellaneous benefit rates Changes to parking permit rates Changes in procard rebate income Changes in property and casualty insurance Changes in utility costs Estimate of future year general fund income and provide descriptive narrative

of tentative changes over current year recurring budget Current year salary proposal summaries Current year revised operating budget narrative and detail

UBO distributes the following to Area Fiscal Officers (AFOs): Future year tentative salary dollar allocations Future year recurring expenditure bases Operating budget guidelines including salary guidelines Future year operating budget narrative and detail

Budget Areas submit to UBO: Completed budgets for affiliated corporations and Hospital Completed operating budget narrative and financial detail Completed Service Center/Recharge operations and income budgets Budget transmittal letter


Budget Preparation

Phase I Income and Non-Position Budget Preparation

Guidelines and Process: The general fund income estimate process for the future year is about four to six

weeks in length.

The auxiliary, hospital and restricted funds income estimate process is about six weeks to two months and is due much later than the general fund income estimate process.

Budget Areas submit final income estimates with supporting documentation regarding significant changes between recurring income estimates (from individual funds centers) in the current fiscal year compared to proposed income estimates in the future year. Significant changes have been defined as follows:

Income estimates that will be eliminated in the new year New income estimates Income estimates which have at least a 10% change from the current fiscal year

with an accompanying dollar amount of $10,000 or more Income and non-position expense budget entry - UBO will provide two

spreadsheets, each containing prior and current year budget and actual information. These spreadsheets will be used for the initial preparation of the future year income and non-position expense budgets. Departments will enter their initial future year general fund income budgets only on the first spreadsheet and their initial auxiliary and restricted funds (including affiliated corps) budgets both income and non-position expense on the second spreadsheet. At scheduled periods, the spreadsheets will be used to upload the future year budgets into the BPS (Business Planning Simulation) system. Any income and non-position expense budget changes needed after the files are uploaded to BPS must be made directly into the BPS system.


BPS System Income and Non-Position Expense Budget Layouts

Campus Non-Position Budget Layout

Income and non-position expense budgets are entered into the BPS system via the Non-Position Budget layout.

1) Select the Campus Non-Position Budget BPS layout link and enter a value for

each of the following selection criteria: Business Area and Department. Then click on the Submit button or press the Enter key.

UK Business Areas are as follows:

a) 0101 – University of Kentucky without component units b) 0102 – Kentucky Tobacco Research and Development Center c) 0103 – UK Housing & Dining d) 0104 – Boone Faculty Club e) 0105 – WUKY f) 0111 – UK Hospital g) 0112 – Samaritan Hospital h) 0113 – University Health i) 0120 – UK College of Medicine Clinical Departments j) 0201 – UK Research Foundation k) 0301 – The Fund for Advancement of Education and Research at the UK

Medical Center l) 0400 – UK Equine Research Foundation m) 0500 – UK Athletics Association n) 0600 – UK Humanities Foundation o) 0700 – UK Mining Engineering Foundation p) 0800 – UK Business Partnership q) 0900 – UK Center on Aging r) 1000 – Central Kentucky Management Services (This business area’s

finances are not part of IRIS) s) 1100 – Boone Center t) KMSF – Kentucky Medical Services Foundation


2) All funds centers [with budgets] in the business area and department entered on the prior screen will be displayed. Enter a future year budget by funds center for each appropriate commitment item in the future budget field. Save the data using the Save button. (See example layout below).

Tips:

Revenue, recharge and pass-thru budgets should be entered as a credit (negative number) to increase the budget.

Use the Add button (bottom) to add a budget (for a funds center/commitment item combination) that is not displayed on the layout. System will indicate an error if a non-relevant commitment item is used.

Only non-position relevant commitment items are allowed on this layout. Funds center and Commitment item master data must exist in R/3 (IRIS

system) before the BPS system will save a budget entry into the budget layouts.

System will display an error if the funds center/business area combination does not exist in IRIS.

The non-position budget layout allows budget entry for future year income and

non-position expenses by funds center and commitment item combinations. This BPS layout will be used for the following non-position fund groups:

General funds Restricted funds including affiliated corporations. Does not include fund

group 22. Budget entries for fund group 25 are prepared using the land grant non-position BPS layout (see page 11).

Auxiliary funds


Fund Group 22 Income Estimates Fund Group 22 relates to the government (state and federal) sponsored Student Financial Aid programs of Pell Grants, College Work Study, SEOGs, Science and Math Access to Retain Talent (SMART), Academic Competitive Grant (ACG), Teach Grant, and CAP grants. Income and expense budgets for fund group 22 are completed on the Operating Budget Worksheet for Restricted Funds – Contracts (Fund Group 22 Funds centers). These worksheets (see sample below) are provided by the UBO during the operating budget process. The expense section of this worksheet includes budget category breakdowns by functional area and expense by object for both the revised and future year expense budget data. After completion, these forms should be sent to the UBO on the appropriate due dates.


Attachment

I

2010-2011 OPERATING BUDGET WORKSHEET

RESTRICTED FUNDS - CONTRACTS

(Fund Group 22)

Program:

Revised Original

2009-2010 2010-2011

EXPENDITURES - BY PROGRAM

Instruction

Research

Public Service

Academic Support

Student Services

Institutional Support

Student Financial Aid

Operations & Maintenance

Hospital

Total - -

EXPENDITURES – BY NATURAL OBJECT

Personnel

Fringe Benefits

Operating Expenses

Capital Outlay

Recharge Pass Thru

Mandatory Transfers

Total - -

Comments:


Fund Group 25 Income Estimates

Fund Group 25 Income Estimates are the land grants that are part of the College of Agriculture. They are either from the Agricultural Experiment Station or the Agricultural Cooperative Extension Services. Income and non-position expense estimates for the fund group 25 are entered only by the College of Agriculture business officers using the Land Grant Non-Position Budget layout in BPS.

1. Select the Land Grant Non-Position Budget BPS layout. Enter a value for

Department and then click on the Submit button or press the Enter key.

2. All land grants [with budgets] in the department entered on the prior screen will be displayed. Enter a future year budget by grant for each appropriate commitment item in the future budget field. Save the data using the Save button. (See example layout below.)


Tips:

Revenue, recharge and pass-thru budgets should be entered as a credit (negative number) to increase the budget.

Use the Add button (bottom) to add a budget for a grant/commitment item

combination that is not displayed on the layout.

Only non-position relevant commitment items are allowed on this layout. System will indicate an error if a non-relevant commitment item is used.

Grants and Commitment item master data must exist in R/3 (IRIS system)

before the BPS system will allow budget entry into the budget layout


Phase II Regular Position Budget and Salary Proposal Process

Guidelines and Process: Salary pools for salary increases are determined by incrementing the general fund

salary base for the current year by a percentage approved by the President’s Cabinet. The general fund salary base is determined by totaling the current salaries of individuals filling regular state and mandated positions (FCC = S and M) on a specified date. Regular positions are defined by the personnel subareas of the HR enterprise structure. This pool of funds is to be distributed based upon performance (merit) for regular faculty and staff as well as market and equity adjustments for faculty.

The UBO distributes salary dollar allocations with associated funding for increased benefits as well as budget guidelines including salary guidelines to the area fiscal officers for budget and salary entries.

Position budget allocations will be distributed based on the cost distribution of infotype 1018. A BW Position Cost Distribution report is available on the BW budget report role for verification. See Report section below for running BW reports.

Budget areas must complete position budget entries and salary proposals for the future year on the BPS layouts.

Proposed salaries are reviewed by the UBO and approved by the Budget Area Heads as appropriate and consistent with approved salary guidelines. Once approved, proposed salaries are included as part of the operating budget document to be approved by the UK Board of Trustees.


Regular Position Layout

Regular position budgets and salary proposals are entered into the BPS system via three BPS layouts – 1) Regular Position Budget and Salary Proposal, 2) Salary Adjustment Reason Code, and 3) Regular Position Budget Only. These layouts are available for both Campus and Land Grant budgeting areas.

The Regular Position Budget layout must be used for regular position budget and salary proposals only. If a position is regular, filled, and does not appear in the layout, please notify the UBO.

For positions that are either pooled, defined as non-regular (e.g., temporary, students, etc.), or positions which do not participate in the salary proposal process (e.g., clinical faculty, Ag extension agents, county secretaries) use the Non-Regular Position Budget and Non-Regular Position Salary layouts for preparing the position budget and salary proposal respectively.

1. Select the Regular Position Budget BPS layout for either Campus or Land Grant. Enter a value for Department and then click on the Submit button or press the Enter key.

2. The next screen will appear with four tabs:

1) Faculty tab is for regular faculty employees only in positions that are filled and those participating in the salary proposal process. All active regular employees in the department entered on the prior screen will be displayed. Enter either the proposed salary % increase or the proposed annual salary amount for each employee if appropriate. If entering a % increase, click on the Calculate Salary from % Incr button. Click on the Copy Salary to Budget button to enable the system to copy the proposed annual salary to the new-year budget field. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.


2) Monthly Staff tab is for regular monthly paid staff employees in positions that are filled and those participating in the salary proposal process. All active regular employees in the department entered on the prior screen will be displayed. Enter either the proposed salary % increase or the proposed annual salary amount for each employee if appropriate. If entering the % increase, click on the Calculate Salary from % Incr button. Click on the Copy Salary to Budget button to enable the system to copy the proposed annual salary to the new-year budget field. Click on the Calculate Benefit button, so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.

3) Bi-Weekly/Hourly Staff tab is for regular bi-weekly and hourly paid staff employees in positions that are filled. All active regular employees in the department entered on the prior screen will be displayed. Click on the Copy Distr % from Prior Year button. Change the new-year distribution percentage, if incorrect. Enter either the proposed pay rate % increase or the proposed pay rate amount for each employee if appropriate. If entering the % increase, click on the Calculate Salary from % Incr button. Click on the Copy Salary to Budget button to enable the system to copy the proposed annual salary to the new-year budget field. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget fields may be overwritten if the calculated amounts should be changed. Click on the Save button to save the data.


d) Vacant Posn Budget tab contains position budgets for regular positions ONLY that are vacant. All funds centers with vacant position budgets in the department entered on the prior screen will be displayed. Enter a proposed annual budget amount for each position if appropriate. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.


NOTE: Any current year salary changes to be made for an employee during

the position budget and salary proposal process will be made by submitting an online ZHR_PAR to Compensation. Any future year salary changes to be made for an employee after the position budget and salary proposal process is complete will be made by submitting an online ZHR_PAR to Compensation on July 1.

Tips:

a) The Add button (bottom of screen) should only be used to add a line to the budget layout for a Faculty/Monthly Staff funding source (new funds center) or a Biweekly/Hourly staff cost distribution. Do not use the Insert function to add a new employee assignment number (PERNR). To add a new PERNR, contact the UBO. Enter the PERNR (employee number), position number, funds center, commitment item, and cost distribution (Biweekly/Hourly only) for the employee in the Faculty, Monthly Staff or Bi-Weekly/Hourly Staff tabs. When inserting a new line, enter the position number, funds center and commitment item in the vacant position budget tab. If inserting a new line for cost distribution, enter the appropriate data, and then press Enter. After the system has processed the new data, click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amounts should be changed. Click on the Save button to save the data.

b) This BPS layout must be used for regular positions budget and salary

proposals ONLY. If a position is regular and filled and does not appear in the layout, please notify the UBO.

c) PERNR, position, funds center and Commitment item master data must exist in R/3 (IRIS system) before the BPS system will allow budget entry to be saved in the budget layouts.


Clinical Employees Who Are Part of the Hospital Salary Enterprise Structure

In BPS, there are two budget layouts where the clinical employees will appear:

1. Campus Position Budget 2. Campus Regular Position Budget Only

Using the Campus Regular Position Layout The clinical employees who are part of the Hospital Enterprise salary structure are all bi-weekly, and will show in the bi-weekly tab of the BPS System, if the position is filled and has a budget associated with the position. Remember to select the Bi-Weekly/Hourly Staff tab. If you do not see any employees you may be on the wrong tab or the position is unbudgeted.

The Campus Regular Position layout can be used to create a budget for the next budget year by entering the budget directly into the future budget field, and then use the Calculate Benefits button to calculate the benefits budget.

As indicated in the above example, clinical employee “John Doe” shows a salary of $0.00. All clinical employees who are part of the Hospital Enterprise salary structure will have a zero (0) in the following current year fields: hours/pay period, 2009 Dist %, 2010 Dist %, 2009 Pay Rate, 2009 Salary. After the budget is prepared the system should also show zero (0) in the following future year fields: 2010 Propose Pay Rate and 2010 Propose Salary. Any data into these two fields will be retracted to the SAP system which will create a new action and employee pay record. Although the budget can be built for the clinical employees using the Campus Regular Position layout in BPS, it may be more efficient to use the BPS Campus Regular Position Budget Only layout. Because this layout only reflects budget and there is only one button to push there is no danger of keying in a salary and causing an erroneous retraction back to the SAP system. Thus there will be no consequence for affecting an employee’s pay record.


Adjustment Reason Code Layout

All regular employee salary proposals must be assigned to a salary adjustment code. One layout per budgeting area is available for this process.

The available adjustment salary codes are as follows:

a) P – Promotion b) S – Scale c) M – Merit d) K – Market e) E – Equity f) L – Leaving University (Use this code ONLY when an employee will be

separating from the university (effective July 1) either in the new fiscal year or after the salary proposal process is closed (usually late April, May or June).

g) O – Other h) D – Distribution Change

The adjustment code layout defaults to an M for all salary changes.

3. IF the new year salary increase for a regular position is not entirely merit based,

select the Regular Position Adjustment Reason Code BPS layout for either Campus or Land Grant. Enter a value for Department and then click on the Submit button or press the Enter key.

4. The next screen will appear with three tabs: Faculty tab is for regular faculty employees. The salary increment defaults

to M for merit. a. If the proposed salary increase is not entirely merit based, use the Add

button to insert a new line.


b. Enter the appropriate PERNR (employee number), funds center and adjustment code key (e.g., S, E, etc.), wage type, and increment. Click on the Submit button.

c. The initial merit amount will be adjusted.


d. Click on the Save button.

Monthly Staff tab is for regular monthly paid employees. The salary increment defaults to M for merit. If the proposed salary increase is not entirely merit based, use the Add button to insert a new line and enter the appropriate PERNR (employee number), funds center, adjustment code key (e.g., S, E, etc.), wage type, and increment. The initial merit amount will be adjusted.

Bi-Weekly/Hourly Staff tab is for regular bi-weekly and hourly paid employees. The salary increment defaults to M for merit. If the proposed salary increase is not entirely merit based, use the Add button to insert a new line and enter the appropriate PERNR (employee number), funds center, adjustment code key (e.g., S, E, etc.), wage type, and increment. The initial merit amount will be adjusted.

Tip:

Enter all proposed salaries in the Regular Position layout first before

accessing the Adjustment Reason Code Layout.


Regular Position Budget Only Layout The Regular Position Budget Only layout is used to adjust position budgets after the salary proposal process is closed.

1. Select the Regular Position Budget Only BPS layout. Enter a value for

Department and then click on the Submit button or press the Enter key.

2.The next screen will appear with four tabs:

1) Faculty tab is for regular faculty employees only. All funds centers with position budgets in the department entered on the prior screen will be displayed. Enter changes to the budget amount for the appropriate positions if warranted. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future-year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.


2) Monthly tab is for regular monthly paid staff employees. All funds centers with position budgets in the department entered on the prior screen will be displayed. Enter changes to the budget amount for the appropriate positions if warranted. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future-year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.

3) Bi-Weekly/Hourly Staff tab is for regular bi-weekly and hourly paid employees. All funds centers with position budgets in the department entered on the prior screen will be displayed. Enter changes to the budget amount for the appropriate positions if warranted. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed. Click on the Save button to save the data.


4) Vacant Posn Budget tab contains position budgets for regular positions ONLY that are vacant. All funds centers budgets in vacant positions in the department entered on the prior screen will be displayed. Enter changes to the budget amount for the appropriate positions if warranted. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future-year budget and benefits budget amounts may be overwritten if the calculated amounts need to be changed.

Tips:

Use the Add button (bottom of the screen) to add a new-year budget for a regular position. Enter the position number, funds center and commitment item for the employee in the Faculty, Monthly Staff or Bi-Weekly/Hourly Staff tabs. Enter the position number, funds center and commitment item in the vacant position budget tab.

This BPS layout must be used for regular employee budgets ONLY.

Position, funds center and commitment item master data must exist in R/3 (IRIS system) before the BPS system will allow budget entry into the budget layouts.

Clinical Employees Who Are Part of the Hospital Salary Enterprise Structure The Campus Regular Position Budget Only layout allows the user to create the unit budget for a position.


Use the future year budget fields to enter the desired budget for your clinical employees, and then use the “calculate benefits” button to calculate the benefits budget.

Editing Position Budgets after Salary Proposal Process is Complete

When the salary proposal process is complete, access to the Regular Position layout will be removed and access will be provided for making changes to the Regular Position Budget Only layout. o This allows updates to the future-year position budgets for regular positions

when needed.

Access to the Regular Position layout cannot be made available simultaneously with the Regular Position Budget Only layout because both layouts use the same information and data locks will occur.

Benefits Budgets In most cases, the benefits budgets should not be entered directly into the BPS

system but should be calculated based on benefit percentages determined by a matrix table of employee categories (see below).

Employee Category 1) Faculty Reg FT (Incl >.74 FTE) 2) Faculty Reg PT 3) Civil Service Faculty 4) Hourly (Non Exempt) Staff Reg FT 5) Hourly (Non Exempt) Staff Reg PT 6) Monthly (Exempt) Staff Reg FT

(Includes Exempt Bi-weekly) 7) Monthly (Exempt) Staff Reg PT

(Includes Exempt Bi-weekly) 8) Civil Service Staff 9) Post Docs 10) Housestaff


11) Other (LTD, students)

The benefit percentages are only used for benefit budget calculations during the budget development process. The calculated benefit budget amount can be changed directly in the layout if necessary. PLEASE NOTE: Even though the capability is available to change the benefits budgets on a position budget, it is expected that adequate benefits are placed directly against a funds center in the benefits budget column. This process does not replace having benefits against each position and does not endorse putting all benefits for an area into one funds center.

Benefits need to be budgeted in the funds center that is associated with the position budgets they support.


Phase III Non-Regular Position Salary Proposals and Budget Entries The Non-Regular Position Budget and Non Regular Position Salary layouts are used for budget entry and salary proposal respectively for positions that are either pooled, defined as non-regular (e.g., temporary, students, etc.) or positions which do not participate in the salary proposal process (e.g., clinical faculty, Ag extension agents, county secretaries).

Non-Regular Position Budget Layout

The Non-Regular Position Budget layout must be used for budget entry ONLY. Criteria for this layout are based on positions in a table located and maintained within the IRIS system. If the table needs to be modified due to either a position appearing on the layout that should not be there or position not appearing on the layout that should be there, notify the UBO office.

1. Select the Non-Regular Position Budget BPS layout for either Campus or Land

Grant. Enter a value for Department and then click on the Submit button or press the Enter key.

2. All active non-regular positions in the department entered [on the prior screen] will be displayed. Click on the Copy Budget to New Year button if prior year budget will be the same as the new year budget or enter a future year budget by funds center for each appropriate commitment item and position combination in the future budget field. Save the data using the Save button. See example layout below.


3. Click on the Calculate Benefit button so the system can calculate the new-year benefits budget. The future year budget and benefits budget amounts may be overwritten if the calculated amount needs to be changed. Click on the Save button to save the data.

Tips:

a) Use the Add button (bottom left) to add a budget for a funds

center/commitment item/position combination that is not displayed on the layout.

b) This BPS layout must be used for budget entry ONLY for positions that are

either pooled, defined as non-regular (e.g., temp, students, etc.) or do not participate in the salary proposal process (e.g., clinical faculty, Ag extension agents, county secretaries). Criteria for this layout are based on positions in a table located and maintained within R/3 (IRIS system). If the table needs to be modified due to either a position appearing on the layout that should not be there or a position not appearing on the layout that should be there, notify the BPS listserv ([email protected]).

c) Funds center, commitment item and position master data must exist in R/3

(IRIS system) before the BPS system will allow budget entry to be saved into the budget layout.


Non-Regular Position Salary Layout The Non-Regular Position Salary layout must be used for salary entry only for positions that are either pooled, defined as non-regular (e.g., temporary, students, etc.) or do not participate in the salary proposal process (e.g., clinical faculty, Ag extension agents, county secretaries, etc.). Criteria for this layout are based on positions in a table located and maintained within the IRIS system. If the table needs to be modified due to either a position appearing on the layout that should not be there or a position not appearing on the layout that should be there, please notify the BPS listserv ([email protected]).

1) Select the Non-Regular Position Salary BPS layout for either Campus or Land

Grant. Enter a value for Department and then click on the Submit button or press the Enter key.

2) The layout will appear with three tabs: 1) Faculty tab displays faculty employees. All active non-regular faculty

employees in the department [entered on the prior screen] will be displayed. Enter either a proposed salary percentage increase or an annual salary amount for each faculty employee if applicable. If a proposed salary percentage is used, click on the Calc. Salary from % Incr button and save the data using the Save button – the new-year proposed salary will be calculated. If an annual salary is entered, save the data using the Save button.


2) Monthly tab is for monthly paid staff employees. All active non-regular employees in the department entered on the prior screen will be displayed. Enter either a proposed salary percentage increase or an annual salary amount for each monthly employee if applicable. If a proposed salary percentage is used, click on the “Calc. Salary from % Incr” button and save the data using the Save button – the new-year proposed salary will be calculated. If an annual salary is entered, save the data using the Save button.

3) Bi-Weekly/Hourly tab is for bi-weekly and hourly paid employees. All active non-regular employees in the department entered on the prior screen will be displayed. Click on the Copy Distr % from Prior Year button. Change the new-year distribution percentage if incorrect. Enter either a proposed pay rate percentage increase or a proposed pay rate for each employee if applicable. If a proposed pay rate percentage is used, click on the Calc. Salary from % Incr button and save the data using the Save button. If a proposed pay rate is entered, save by using the Save button. In both cases, the new-year proposed annual salary will be calculated.



Tips: a) Use the Add button (bottom of screen) to add a line to the budget. Enter the

PERNR (employee number), position number, funds center and commitment item for the employee.

b) This BPS layout must be used for salary entry ONLY for positions that are either pooled, defined as non-regular (e.g., temp, students, etc.) or do not participate in the salary proposal process (e.g., clinical faculty, Ag extension agents, county secretaries, etc.). Criteria for this layout are based on positions in a table located and maintained within R/3 (IRIS system). If the table needs to be modified due to either a position appearing on the layout that should not be there or a position not appearing on the layout that should be there, please notify the BPS listserv ([email protected]).

c) PERNR, position, funds center and commitment item master data must exist in R/3 (IRIS system) before the BPS system will allow budget entry into the budget layouts.

d) The proposed salary percentage and the annual salary amount fields should not be used simultaneously.


Budget Reports The following describes some of the major budget reports available for the budget process. These reports and are located in the BW BPS Reports role (see below for report definitions, descriptions and execution). Reports include:

Position Cost Distribution Budget Income Estimate Land Grant Budget – Income Estimate Budget Expense Estimate Land Grant Budget – Expense Estimate Budget Narrative Report Budget Reconciliation Report Salary Proposal Detail Report Full Time– Regular Employees Salary Proposal Detail Report Part Time – Regular Employees Salary Proposal Summary Full Time – Regular Employees Salary Proposal Summary Part Time – Regular Employees

Report Definitions and Descriptions

Budget reports are located in the BW BPS budget reports role. If you are unable to locate a particular budget report, you should contact your budget area security officer.


Position Cost Distribution Report Purpose: This report provides information on the cost distribution percentage from

infotype 1018 for each active position in SAP-HR. As a part of the budget process, units and departments must review and edit the cost distribution percentage from infotype 1018 since position budgets are based on this cost distribution percentage. Corrections to the infotype 1018 cost distribution percentage must be made in R/3 (IRIS system) before they are reflected in BPS.

Definition: The position cost distribution is a BW report located under the BW report

role: FI-Budget. The report lists the cost distribution percentage for all active positions for all cost objects (funds center and WBS element) associated with a position. The report is sorted by: Position, department, Organizational Unit, FCC, funds center, grant and cost distribution percentage.

Execution: The selection criteria for the position cost distribution report are as follows:

a) Personnel Area (Optional Field). Eg. 1000 (Main Campus) b) Personnel Subarea (Optional Field). Eg. 0001 (Reg FT)

c) Employee Group (Optional Field). Eg. A (Staff) d) Employee Subgroup (Optional Field). Eg. 03 (Exempt Monthly) e) Funds Center (Optional) f) Department (Optional)

To execute report: Call up the report, enter any mandatory and/or optional selection criteria then execute the report. Units should limit the report to a department or range of departments for more efficient performance. The report contains a condition to allow the user to limit the results to show only those funds centers whose distributions do not equal 100 percent.

To execute the condition from the web report:

a) Run report for a department b) Click "Exceptions and Conditions" button on the top left (next to the

variable screen button). c) Select the active condition "position not equal to 100%"

Technical Info: The position cost distribution report is built from the ODS BPS_O05. The

report technical name is QBPS_O05_5001.


Budget Income Estimate Purpose: The Budget Income Estimate report provides actual and budget revenue

details by funds center and commitment item combination. This report is used exclusivly during the budgeting process to verify and report the University's revenues.

Definition: The income estimate report is a BW report located in the BW report role:

BWP-Reports-Budget. The report lists revenues for prior year actual total, prior year annual budget, current year original, budget, current year recurring budget, current year annual budget, current YTD actual, and future year budget. The report also provides a difference between the recurring budget and future year budget. The income estimate report is sorted by department, funds center, and commitment item.

Execution: The income estimate report only reports revenues from the Funds

Management module. The selection criteria for the income estimate report are as follows:

a) Company Code (defaulted to UK00) b) Fiscal Year (Mandatory field - requires a single value only) c) Business Area (Optional) d) Fund (Optional) e) Department (Optional) f) Funds Center (Optional) g) Functional Area (Optional) h) Budget Family (Optional)

To execute: Call up the report, enter the mandatory and any optional

selection criteria, and then execute the report. Technical Info: The Income Estimate Report is built from the MultiCube BPS_M01. The

report technical name is QBPS_M01_5003. The report is restricted to the revenue commitment items in the hierarchy UK00ZALL_CI.


Budget Expense Estimate Purpose: The Budget Expense Estimate report provides actual and budget expense

details by funds center and commitment item combination. This report is used exclusively during the budgeting process to verify and report the University's expenses.

Definition: The expense estimate report is a BW report located in the BW report role:

BWP-Reports-Budget. The report lists expenses for prior year actual total, prior year annual budget, current year original, budget, current year recurring budget, current year annual budget, current YTD actual, and future year budget. The report also provides a difference between the recurring budget and future year budget. The expense estimate report is sorted by department, funds center, commitment item, position, employee and FCC.

Execution: The Expense Estimate Report only reports expenses from the Funds

Management module. The selection criteria for the income estimate report are as follows:

a) Company Code (defaulted to UK00) b) Fiscal Year (Mandatory field - requires a single value only) c) Business Area (Optional) d) Fund (Optional) e) Department (Optional) f) Funds Center (Optional) g) Functional Area (Optional) h) Budget Family (Optional) i) Funding Category Code (FCC) (Optional)


selection criteria, and then execute the report. Technical Info: The Expense Estimate Report is built from the MultiCube BPS_M01. The

report technical name is QBPS_M01_5004. The report is restricted to the expense commitment items.


Budget Reconciliation Report Purpose: The Budget Reconciliation Report provides actual and budget revenue

and expense details by funds center and commitment item combination. This report is used exclusively during the budgeting process to verify and report the University's revenues and expenses.

Definition: The reconciliation report is a BW report located in the BW report role:

BWP-Reports-Budget. The report lists revenues and expenses for prior year actual total, prior year annual budget, current year original, budget, current year recurring budget, current year annual budget, current YTD actual, and future year budget. The report also provides a difference between the recurring budget and future year budget. The budget reconciliation report is sorted by department, funds center, commitment item, position, employee and FCC.

Execution: The selection criteria for the budget reconciliation report are as follows:

a) Company Code (defaulted to UK00) b) Fiscal Year (Mandatory field - requires a single value only) c) Business Area (Optional) d) Fund (Optional) e) Department (Optional) f) Funds Center (Optional) g) Functional Area (Optional) h) Budget Family (Optional) i) Funding Category Code (FCC) (Optional)


selection criteria, and then execute the report. Technical Info: The Budget Reconciliation Report is built from the MultiCube BPS_M01.

The report technical name is QBPS_M01_5009.


Other Information

Master data must exist in R/3 (IRIS system) before budgets can be saved in the

BPS system. Security for the BPS system is based on the department or group of departments for

which you are responsible. The Area Fiscal Officer (AFO) is responsible for assigning the department to users.

Changes to future year salary entries already made for employees during the salary

proposal process must be made on July 1st using the ZHR_PAR process. The BPS system calculates current year annual salaries for the layouts using the

pay rate amount field from the SAP basic pay infotype (0008) based on the following formulas:

Wage Type

Wage Type Description

Salary Calculation Salary Calculation Exception

1005 Hourly Rate Amount * pay-rate*26

1010 Monthly Salary Amount * 12 9 mo faculty = Amount * 9; 10 mo faculty = Amount *10

1020 Bi-weekly Salary Amount * 26 1060 Post-Doc Fellowship Amount * 12 1065 Post Doc Fellow

Trainee Amount * 12

1070 Visiting Scholar Amount * 12 1080 Post-Doc Scholar Amount * 12 1090 House Staff Amount * 12 1110 Admin Stipend - Base Amount * 12 9 mo faculty = Amount * 9;

10 mo faculty = Amount *10 1210 Monthly Salary – No

Ben Amount * 12

1310 Dept LTD Monthly Salary

Amount * 12

1320 Dept LTD Bi-weekly Salary

Amount * 26

Cost distribution allocations are based on the Infotype 1018 record.

FCC – Funding Category Codes. This code identifies the funding source of position

budgets. The FCC codes are associated with a position only through the funds center that funds the position. The FCC codes are:

A – Auxiliary Funds C – Clinics E – Endowment


F – Federal appropriations G – Grant H – Hospital I – Income supported K – KMSF M – Mandated program supported P – Pass-thru R – Recharges S – State and Tuition supported X – Excluded from base calculations

Documents

Budget Manual 2011 v3 - University of Kentuckymyhelp.uky.edu/rwd/HTML/BPS/Budget_Manual_2011.pdf · Set deadline for departmental changes in SAP. ... (SMART), Academic Competitive