Budget2013 - University of Maryland

Report
Office of the Senior Vice President and Provost
Budgeting 101
for New Administrators
University of Maryland, College Park
Cynthia R. Hale
Associate Vice President for Finance and Personnel
Office of the Senior Vice President and Provost
Peg Hinkle, Research Analyst
Office of the Senior Vice President and Provost
August 2013
Table of Contents
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Campus Budget Overview
Budgeting at the Local Level
Glossary of Budget Terms
DRIF Distribution
Finding Resources
Tools for Fiscal Oversight
Financial Systems
Top Ten Tips
Office of the Senior Vice President and Provost
University of Maryland, College Park
FY 2013 Total Operating Budget: Revenue
FY2013 TOTAL OPERATING BUDGET: REVENUE
Total Unrestricted Revenue
$1,307,808,578
Total Restricted Revenue
FY13 TOTAL OPERATING BUDGET
• State increased total FY14
appropriation by 7.3% to
$447 M; 3% tuition increase
for UG residents approved
$428,056,165
$1,735,864,743
State
Tuition & Fees
Appropriations
27%
24%
State/ Local Grants
& Contracts 3%
Private Gifts,
Grants, Contr. 3%
Auxiliary
Enterprises 14%
Federal Grants &
Contracts 18%
Other 3%
Gov't & Private
Gifts, Grants 6%
Sales & ServicesEduc Activities 2%
Office of the Senior Vice President and Provost
FY 2012 Tuition Revenue Sources*
Entrepreneurial revenue
from Academic
Programs makes up $57.3 M.
$57.6 M is generated from
Self-Supporting Operations.
Admin Fees GR Entrepreneurial
Other
$8.2 M
$54.2 M
GR Non-Resident
Entrepreneurial
$18.7 M
$3.1 M
GR Resident
Non-State-Supported
$35.9 M
$57.6 M
UG Non-Resident
$143.7 M
UG Resident
$131.4 M
*FY13 source breakdown not available.
Office of the Senior Vice President and Provost
University of Maryland, College Park
FY 2013 Total Budget by Expenditure Category
FY2013 TOTAL BUDGET: EXPENDITURES
Salaries & Fringe Benefits
$1,065,834,126
Grants (Scholarships & Remissions)
$127,666,293
Fuel & Utilities
$65,843,429
Equipment, Supplies, & Vehicle Operations
$117,275,986
Fixed Charges, Debt Service, Rentals & Contracts
$253,546,074
Land & Structures
$56,688,108
Travel & Communication
$49,010,727
TOTAL EXPENDITURES
$1,735,864,743
Salaries & Fringes
Fixed
Charges, etc.
Travel & Comm.
Grants (Scholarships
& Remissions)
Fuel & Utilities
Equip., Supplies &
Vehicle Operations
Land & Structures
Office of the Senior Vice President and Provost
Glossary of Terms
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Fund Balance: The cumulative year-end balance of various
departmental accounts including state roll-forward, DRIF, revolving
accounts. It does not include gift funds held in the Foundations.
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Soft Money: Funds received on a one time basis with no
commitment of future allocation. DRIF, Summer/Winter and
entrepreneurial revenues are considered soft money.
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Hard Money: State allocated funds that are considered to be
guaranteed year to year; COLA, MERIT and Fringe Benefits are
allocated for hard money accounts.
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FTE/Lines: “Full Time Equivalent” – a budgetary device that assigns
fringe benefits from the campus Fringe Benefit Pool to a particular
position. Only available in hard (state) budgets.
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DRIF: A formulaic distribution of the F&A (overhead) produced by
a program’s sponsored research activity. To be used for research
related activity.
Office of the Senior Vice President and Provost
Glossary of Terms (cont’d.)
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Revolving Account: An account into which soft money is
transferred; the balance at the end of the fiscal year typically rolls
forward. Summer/Winter term accounts, DRIF accounts are
considered revolving.
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Plant Funds: A central account, tied to the program, where
programs transfer or “save” funds for future construction and
renovation project. A prudent way to manage fund balances.
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Restricted Funds: Funds received for which there is a proscribed
purpose such as sponsored research grants and contracts and gifts
for which the donor provided explicit directions. Administrators
are responsible for assuring the funds are spent appropriately.
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Interest Income: Annual income generated by endowments, which
are always held in one of the foundations. Income is typically
slightly less than 5% of the endowment value. It is used to
reimburse program for costs incurred by the endowed chair or
related activity.
Office of the Senior Vice President and Provost
Glossary of Terms (cont’d.)
• Underwater Accounts: Gift accounts held in the foundations, the
value of which is less than the original gift, due to poor performance
by the investment portfolio. Accounts are often frozen until the
original value is restored.
• KUALI: A national consortium of universities to develop open
source software which will support universities in perpetuity
without the cost of commercial products or licenses. UM has been a
member since 2007. We expect to replace our current financial
system (FRS) with KUALI Financial in January; KUALI Student
Services is under development.
Office of the Senior Vice President and Provost
Designated Research Funding Initiative
(DRIF)
• The total FY 2013 DRIF budget was $39,099,416
Recipients
% of Total
1)
Academic Departments
33%
2)
Academic Deans
24%
3)
Office of the Provost
24%
4)
Graduate Dean
17%
5)
Libraries & Undergraduate Studies
TOTAL
2%
100%
• Calculated on F&A generated by expenditures two years prior
• FY14 DRIF was produced in FY12
• 50% of F&A revenues support the base budget of the campus
Office of the Senior Vice President and Provost
Funding New Initiatives
Internal
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Fund Balance – Unspent $
DRIF
Summer/Winter Revenue
Entrepreneurial Programs
Development
Foundation Accounts
External
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Graduate School
Dean’s Office
Provost’s Office
VP for Research Office
Facilities Council
Special Initiatives
Office of the Senior Vice President and Provost
Effective Fiscal Oversight
Develop a report that includes information you need to
monitor your accounts and resources:
• Revised budgets – across multiple accounts
• Projected expenditures
• Projected balances
• Current list of employees and salaries
• Accounts receivable – who owes you money
Office of the Senior Vice President and Provost
University Financial Systems
Official Accounting Records
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FRS – Financial Records Systems – accounting
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BPM – Budget Preparation and Maintenance System –
budget management
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PHR – Payroll & Human Resources
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KFS – Kuali Financial System – January 2014
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Foundation Accounts – UMCPF & USMF
Office of the Senior Vice President and Provost
Top 10 Safety Tips for New Administrators
1. Develop strong working relationships with your
College Budget Officer and your Business Manager
2. Establish a culture of integrity and openness
3. There are no secrets - Diamondback Salary inset
4. Don’t make promises you can’t honor
5. Wear your campus hat – idiosyncratic credits
Office of the Senior Vice President and Provost
Top 10 Safety Tips for New Administrators
6. Keep careful records of all commitments
7.
Don’t hoard - but develop a financial safety net
8.
Avoid a bad audit by training and empowering staff
9. Beware of setting precedents
10. Surprises are never popular with deans & provosts.
Office of the Senior Vice President and Provost
Balance
Creativity
Compliance
Office of the Senior Vice President and Provost

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