presentation - University of Virginia

Report
2015-16 Budget Kickoff
Budget Development
for Central Service & Auxiliary Units
November 21, 2014
2015-16 Budget Kickoff Meeting
Central Service and Auxiliary Providers
Meeting Objectives
• Open the lines of communication
• Status updated on the 2014-15 budget translation into the
University Financial Model
• Budget Assumptions
• Highlights of What’s New this year
• Key Calendar/Due Dates
• Budget Portal
• Budget Meetings
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2015-16 Budget Kickoff Meeting
Central Service and Auxiliary Providers
Communication
• Today’s meeting is a starting point in an on-going dialogue.
• View this as an opportunity to receive answers to some of your
questions, and exchange ideas and thoughts.
• Support each other through this period of change recognizing that
we are in this together.
• Remember -- the next two years (2015 and 2016) will be budget
neutral (a.k.a. hold harmless) to provide an opportunity to adapt
and fully transition to the University’s Financial Model (UFM).
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2015-16 Budget Kickoff Meeting
Status of the 14-15 Budget Translation
• Starting point–the 2014-15 board approved budget (6/23/2014)
– Approved new funding and compensation increases were processed as
installments in the Integrated System and translated to UFM.
– Revenue sources traditionally managed at the institutional level were
translated to Activity Centers including:
• Specifically designated General Fund Appropriation Revenues
• G&C and F&A Revenues
• Endowment Distribution and Administrative Fee Revenues
• Expendable Gifts and Gifts from Affiliated Foundation Revenues
• Use of Current Year Cash Balances
– New projects and awards were created to align budgeted revenue and
expenditures to the appropriate Activity Centers.
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2015-16 Budget Kickoff Meeting
Status of the 14-15 Budget Translation (continued)
– New projects and awards, as needed, were created to align budgeted revenue and
expenditures to the appropriate Activity Centers.
– Items traditionally reserved centrally were shifted to the appropriate Activity
Centers including:
» Weather-related and Utility reserves
» Debt Service obligations
» Financial Aid reserves
–
–
–
Adjustments to organizational hierarchies and structures were modified as were
Activity Center mappings to support appropriate reporting structures in UFM.
Logic relating to the alignment and treatment of G&A recoveries and Central
Assessments was formalized within the model.
Impact Analysis for the implementation of changes related to processing F&A and
the Endowment Administrative Fee – confirmed that Central Service Providers
will be budget neutral as part of this transition.
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Highlights of What’s New this Year
Timing
-
Early Board Approval – A high level version of the budget will be presented to
the board in April 2015 rather than June 2015.
-
Traditionally, administrative areas and schools adhered to the same budget
calendar for developing budget materials. For FY2015-16, with the
implementation UFM, CSPs will be asked to submit high level estimates based
on:
– Preliminary Assumptions approved by the Finance Committee Chair as of
November 7, 2014, and
– Any impact of any Service Level changes that would result in an increase in
base expenses beyond the scope of expense increases outlined in the
preliminary assumptions
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From Model
From Model
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State Cut
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Highlights of What’s New this Year [continued]
Budget Neutrality
As was the case for F14-15, the UFM includes a provision for FY15-16 to be
budget-neutral. This terminology replaces the term “hold harmless,” to
acknowledge events that occur outside the scope of the financial model, such as
state mandated appropriation reductions, which prevent the institution from
guaranteeing a “hold harmless” status for all schools and units.
T&F Fee Approval
The current expectation is that both Graduate and Undergraduate Tuition & Fees
will be presented at the February board meeting.
• A new T&F form has been developed through collaboration of the AVP of Finance
special project team responsible for developing Multi-year tuition modeling, Student
Financial Services, and the Provost’s office.
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Highlights of What’s New this Year [continued]
Allocations
-
The only areas that should budget G&A allocations are Auxiliaries.
-
Central assessments in the schools should NOT be budgeted for 2015-16 since
this will be a product of the model.
-
ONLY budget direct expenditures.
-
The model’s allocation methodology includes:
– Allocations to both CSP’s and School are at the Activity Center level.
– The occupant of a space will pay for the space.
– Service level modifications and related costs will be reviewed by executive
management with feedback from schools.
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Highlights of What’s New this Year [continued]
CSP Early Estimate of Cost Changes
• Schools and CSPs are responsible for budgeting ONLY direct costs; however;
schools will need an early indication of changes impacting their allocable costs
for planning discussions.
• CSPs will be required to provide estimates earlier in the process to facilitate
approval of requested changes and any service level modifications
– Template for direct costs
– Baseline is the 2014-15 translated budget
– UFM Discoverer Reports:
• Actual reports
• Budget reports - under development
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Highlights of What’s New this Year [continued]
CSP of Cost Changes [continued]
• The expectation is that CSPs will develop their costs at whatever level of
granularity that this meaningful to them and provide at a minimum, summarized
estimates in an excel template - currently under development
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Revenue Assumptions
• Tuition and Fees
– The proposal for base undergraduate tuition increase
• The Finance Subcommittee on Affordable Excellence and
administration are developing a comprehensive undergraduate tuition
and financial aid strategy for the February 2015 Board
– Fees
• Units will submit fee proposals
• Revised Template
• Assumptions:
– 20,500 regular session and 5,600 special session fee-paying students
– Service Levels
• Review of proposed fees and rates will consider:
– Impact to existing students – cost and benefit
– Impact to AccessUVa
– How proceeds will be deployed in support of overall budget objectives
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Revenue Assumptions
• State General Funds
– Assumes no growth and the continuation of the $8.16
million annual reduced appropriations, as expected in the
Governor’s Budget to be released December 2014
• Philanthropy
– Schools should work with development officers
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Revenue Assumptions
• Research – Grants and Contracts and F&A
– Expect less than 1% increase in base
– Current federal F&A rate is 58%, for new grants as of 7/1/12
• Endowment Distribution
– 2015-16 distribution will be 4.28% of 6/30/14 market value
– First half to be distributed in July, second half to be distributed in January
• Endowment Fee
– 0.5% of June 30th market value each year
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Expenditure Assumptions
• Continuation of the $8.16M state budget reduction
– All units will be expected to provide prioritized plans of both a 1% and
3% reduction of their state E&G (SG), state sales and services (SS) and
state restricted (non-financial aid) funding sources.
• Organizational Excellence
• Cornerstone Plan
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Expenditure Assumptions (continued)
• Compensation
– Anticipated BOV-authorized salary increases for July 2015
for both T&R faculty and University staff:
• T&R faculty – The salary base is projected to increase by 4.75%. The timing
and level of faculty salary increases is subject to change by the 2015 General
Assembly or the Board of Visitors
• All other faculty and University staff – It is projected that the Board of
Visitors will authorize a 3.0 percent merit increase
– Classified staff salary increases require state authorization.
For planning purposes, the University assumes no increase for
2015-16
– As planned for the last several years, all schools and units will
budget 27 (rather than 26) bi-weekly payroll periods for 201516.
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Expenditure Assumptions
• Fringe Benefits – All units should use the 2015-16
Projected Rates from the table below:
Approved
2014-15 FB
Rates
27.7
Projected
2015-16 FB
Rates
27.8%
Full-time classified staff and university staff – managerial
& professional and operational & administrative
36.5%
38.5%
Part-time faculty and staff with benefits (20-31 hrs)
27.7%
27.8%
Part-time faculty and staff without benefits and wage
6.0%
7.0%
Full-time faculty and university staff – executive
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FY15-16 Budget Calendar
November • Budget assumptions approved by Finance
Committee chair for planning
• Budget kickoff meetings for CSP’s and
auxiliary units
• Preliminary budget instructions and budget
assumptions available to units
• New Tuition & Fee form released to units
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FY15-16 Budget Calendar
December • New budget template for CSP’s and
auxiliary units released to units
• FY14-15 budget translation to UFM
completed; 14-15 budget data available to
users via Hyperion and Discoverer reports
• CSP’s develop estimates of sources and
uses based on the new template format
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FY15-16 Budget Calendar
January
• Units submit T&F requests by January 5th
• FY15-16 budget submission template due
from CSP’s including auxiliary operations
with fees and rates requiring BOV action
• Senior Leadership review CSP’s proposed
costs and service level agreements; make
recommendation and approval
– CSP’s revise budget submissions, based on
approvals
– UBO summarizes approved budgets in UFM
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FY15-16 Budget Calendar
January
• UBO watches developments in state
budget
• UBO provides updates as needed on state
budget actions impacting assumptions
• University leadership consulted on tuition
proposal requests
• CSP costs allocated through UFM and
shared with schools and special
academic/public service entities
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FY15-16 Budget Calendar
February • BOV approves all tuition and fees, housing
and dining rates
• Provost holds budget meetings with
schools
• Units finalize budget submission as needed
and submit all budget forms and templates
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FY15-16 Budget Calendar
March
• Proposed budget materials (Academic
Division level sources and uses format)
sent to BOV for review and approval at
April BOV meeting
• UBO works with units as needed to
finalize detailed budget materials that will
be approved at the April BOV meeting
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FY15-16 Budget Calendar
April
• BOV approval of high-level FY15-16
budget
• UBO communicates BOV approval of
budget to units
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FY15-16 Budget Calendar
MayJune
• UBO coordinates with units for final
detailed budgets needed in preparation for
the July 1st upload to the integrated system
July
• UBO loads approved budgets into the IS
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Budget Portal Review
• No significant changes to portal structure this year
• Forms are being modified based on input from a
number of stakeholders and based on the impact of
UFM
• Prior submissions are available in each MBU
folder
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Accessing the Budget Portal
• Accessible from www.virginia.edu/budget
• Click on Budget Portal
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Accessing the Budget Portal
Click here to
access the portal
• You will be prompted for a User Name and Password. Enter your
ESERVICES userid and password. [abc9x or eservices\abc9x]
• You can adjust your computer’s settings to bypass this prompt in
the future (see UBO’s website or Budget Portal User’s Guide for
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instructions).
Budget Portal Homepage
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Budget Portal Navigation Bar
All 14-15 budget forms (Budget Narrative, T&F Increase Request
Form, pre-populated Planned Expenditures, IS Upload Template,
Capital Reserve, and ARIP), as well as previous years’ budget
submissions
Standard materials prepared for school/VP budget meetings with
the Provost and COO
Annual budget instructions, planned expenditures instructions,
portal user’s guide, UVA Budget Developer responsibility guide
Frequently Asked Questions
List of preparers and reviewers by MBU (i.e., who has access to
your MBU Folder)
Calendar of budget development dates
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Submission Requirements
• Central Service Unit Budget Tool (under development)
• Budget Narrative (format under discussion; may be modified or eliminated)
• Tuition and Fee Increase Requests
• Integrated System Budget Detail Entry
• Capital Reserve Projections
• Annual Renovation and Infrastructure Projects (ARIP)
• Major Capital Projects Plan Update
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UBO Contact Information
• University Budget Office
– 434-924-3386
– http://www.virginia.edu/budget/
– Who Do I Contact? (see Reference Documents library in portal)
• Chip German, Interim AVP Budget/Financial Planning, rfg5h, 2-6388
• Jen Hale, Financial Analyst, Budgeting & Managerial Reporting, jnh3h, 4-3673
• Keith Carter, Senior Budget Analyst, kac9r, 4-3969
• Melissa Clarke, Associate Budget Director, mfc5g, 4-0992
• Richard Gatlin, Senior Capital Budget Analyst, rg5h, 4-1196
• Donna Jennings, Budget Manager, dmj2nk, 4-0990
• Tracy Plunkett, Budget Manager, tmp3a, 4-0027
• Judy Rowe, Budget Manager, jwr7e, 4-7085
• Bev Smart, Capital Budgets & Systems Manager, bsd4u, 3-0417
• Disha Venkatesan, Budget/ Finance Special Projects Lead, dsv4sb, 4-3907
• Eileen Young, Office Coordinator, epy4n, 4-3386
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