BUDGET DEVELOPMENT CLASS

Crystal Garner

Barry Harris

WHAT IS A FUND?

Fund types are used to classify resources into groups according to specified activities, designations or restrictions for financial accounting and reporting purposes

A fund is used by government agencies to report accounting transactions

At UTA, funds are classified into the following groups

• E&G

• Designated

• Service

• Auxiliary

• Restricted

E&G APPROPRIATIONS (2XXXXX)

Funds that consist of state tax dollars used to support University general education operations

• Salaries Only

• No M&O accounts (A4000)

• E&G funding must be used entirely by the end of fiscal year

• Used by departments that sell products and provide specific services to the University community

SERVICE (32XXXX)

BUDGETED FUND GROUPS

• Designated Tuition funds which have been approved by the institutions governing board and management

• **note: funded by various sources (mandatory fees, non-mandatory fees, IDC)

DESIGNATED (31XXXX)

AUXILIARY (47XXXX)

Cost centers that are managed by the departments that have self supporting activity

• Housing

• Parking

• Athletics

**Note: funded by various sources (mandatory fees, auxiliary fees and charges, designated tuition)

• Funds that include private donations and income from endowments

RESTRICTED (5XXXXX)

BUDGETED FUND GROUPS

NON-BUDGETED FUND GROUPS

AGENCY (9XXXXX)

Funds held for student organizations

GRANTS

COST SHARES

Sponsored Funds

Portion of project costs that are paid from sources other than the funds provided by the sponsor

FUNDING TYPES

• Allocated Revenue

• E&G (Education & General)

• Designated Tuition

• Generated Revenue

• Mandatory Fees

• Non-Mandatory Fees

• Academic Online (AO)

• Differential tuition

• Sales/Services

• Indirect Costs (IDC)

• Gifts/Endowments

**Note: funding entered by departments in PBCS

MANDATORY FEES:

• Student Services

• Telephone Registration

• Information Technology

• Pledged Student Union

• International Education

• Library Service

• Late Registration

• Academic Partnership

• Testing Center

• Transcripts

• Graduation

• Student Orientation Programs

• Plus many more

MANDATORY VS. NON-MANDATORY

NON-MANDATORY FEES:

Any fee, other than charges for credit hours, room and board, required for all students to pay as a condition of enrollment

Fees that are related to specific programs and activities

• Graduate Student Program

• Recreational Facilities

• Mav Express Student ID Card

• Intercollegiate Athletics

• Medical Service

• Transportation

• http://www.uta.edu/business-affairs/sfs/description/academic-year20-21.php

Starting with the FY22 budget

• Allocation of E&G funds and Designated Tuition will be made at the business unit (VP or Dean) level as UTA moves toward a decentralized budget model

• Change will allow leaders to manage funds in the best interest of their units as opposed to each cost center having the same allocation as the prior year

• A select few will have security access to enter dollar amounts prior to departments budget development work in PBCS

STARTING POINT FOR YOUR BUDGET –ALLOCATION OF FUNDS

Starting with the FY22 budget

• Questions pertaining to the allocation of funds should be referred to the Provost Office, Deans and/or ARP Directors, and Vice Presidents offices directly; the Budget Office does not determine the allocation of funds to the cost center level

• Departmental Budget Form will show the amount of funding allocated to each cost center

• Slide 42 shows Budget Office recommendations for reducing or increasing department/cost center budgets due to the allocation of funds

STARTING POINT FOR YOUR BUDGET –ALLOCATION OF FUNDS

STARTING POINT FOR YOUR BUDGET –ESTIMATING REVENUE

• Use current FY actuals in PBCS to estimate revenue

• MARS > Dashboard dropdown list > Budgets > Recognized Revenue – Running Sum

• Use MARS for analysis of historical data to estimate revenue

• Designed to compare multiple years

All active cost centers are budgeted

Exceptions:

• Cost centers that have no activity (generating revenue) in the current fiscal year and have only carry-forward funds will not be budgeted

• Agency cost centers will not be budgeted

The following positions are budgeted

• Full-time, permanent part-time, and benefits eligible at the position level

• Other position types (GRA, GTA, etc.) as lump sums

STARTING POINT FOR YOUR BUDGET –COST CENTERS AND POSITION BUDGETING

• Review listing of cost centers using the Cost Centers by Department Form

• Summary that includes prior year actuals for cost centers within assigned department(s)

• Shows all cost centers for each department even if there are no budgeted revenue/expenses

• Departments should contact Accounting Services to inactivate unused cost centers

• Departments are responsible for notifying Budget Resource of all inactive and non-budgeted cost centers

STARTING POINT FOR YOUR BUDGET –FINDING YOUR COST CENTERS

STARTING POINT FOR YOUR BUDGET –FINDING YOUR COST CENTERS

• Budgeted Fund Transfers

• Salary Roster / Positions

• Departmental Budget Form

STARTING POINT FOR YOUR BUDGET –REVIEW PRIOR YEAR DOCUMENTS

BUDGETED

• Completed on as-needed basis

• Cross funding rules apply

• Should be budgeted if submitted on a recurring basis

DURING FISCAL YEAR

FUND TRANSFERS

• E&G, Service, and Restricted cost centers are not allowed to have budgeted transfers in PBCS

• Cross funds allowed between Designated and Auxiliary cost centers

• Only the source can enter and/or modify transfers in PBCS

• Verify transfer amount between departments

• 2 step transfers are no longer used during the budget process

• Departments should use other avenues to reduce budgeted transfers if possible

BUDGETED FUND TRANSFERS – COST CENTER TRANSFER SUMMARY

FY22

Used to review all IntraFund transfers out and in of a specific cost center (excluding designated tuition and mandatory fees); populated with prior year transfers and amounts

SALARY ROSTER / POSITIONS

• Used for position management throughout fiscal year (permanent funding changes, reclassifications, salary changes, new hires, terminations, etc.)

• Pull from PBCS Reports > Salary Roster Prior FY

• See slides 26-28 for tracking position adjustments/example for current budget planning year

BUDGETED AT POSITION LEVEL

• Administrative & Professional (AP)

• Classified (CL)

• Faculty (FA1 & FA2)

• Hourly Classified (CLN)

• Graduate Research Assistant (GRA)

• Graduate Teaching Assistant (GTA)

• Part-time hourly

• PT Faculty

• Student/Work Study

• Adjuncts

• Post Docs

• Visiting

• Temps

BUDGETED BY LUMP SUM

POSITIONS

ADMINISTRATIVE & PROFESSIONAL (A&P) – LINE A1000

Employees whose position entails significant administrative and/or professional duties and whose job is not included in the position classification plan, sometimes referred to as unclassified or non-teaching employees; Administrative and Professional employees are appointed to positions without fixed term and serve at the pleasure of a specific administrative officer

POSITIONS

CLASSIFIED (CL) – LINE A1000

An employee appointed to a position in the classified service under one of the official titles as approved in the university’s classified plan paid monthly

FACULTY (FA1 & FA2) – A2000

Academic personnel including various professor ranks based on terms of contract of employment

• Assistant professor

• Associate professor

• Professors

POSITIONS

HOURLY CLASSIFIED (CLN) – A1200

Employees who are appointed for at least twenty hours per week for a period of four and one-half months or more (benefits eligible) excluding students employed in positions, which require student status as a condition for employment

POSITIONS

• Position data for entire department

• Export data for quick audit

• # of positions and position types

• Salary balance for entire unit

FY22

POSITIONS

• Position data for single cost center

• Specific details tied to the Departmental Budget Form

• Salaries

• Fringe Benefits

FY22

OTHER POSITION TYPES

ENTERED AS WHOLE DOLLARS

NOT ENTERED BY INDIVIDUAL EMPLOYEE / POSITION ENTRIES

• GRA – budget will load into UT Share on A1200

• P/T Staff – A1200

• Student/Work-study – A1200

• P/T Faculty – budget will load into UT Share on A2000

• Summer Faculty – A2000

• GTA – budget will load into UT Share on A2100

OTHER POSITION TYPES

FY22

• Departments select the correct department/cost center combination

• Combo code column will be blank if there is a department/cost center mismatch

OTHER POSITION TYPES

FY22 FY22FY20 FY21FY20FY21

• Begin with comparing prior year salary roster to current FY salary roster

• Use completed eForms throughout fiscal year to track position changes

• Permanent funding changes

• Modifications

• Reclassifications

• Re-Organizations

• Position transfers

• New Assignments/Hires

• Terminations

• Changes should be reflected on salary roster for review of position data in PBCS

• Position data pull from UT Share on April 1, 2021 March 29, 2021

• Changes in UT Share after this date will not be reflected in PBCS; department must enter changes manually in PBCS

TRACKING POSITION ADJUSTMENTS

TRACKING POSITION ADJUSTMENTS

PBCS Salary Roster

• Validate position changes from eForms• Update all position changes not loaded into PBCS• Specific details tie to Departmental Budget Form• Departments have view access to PBCS now

FY21 Salary Roster for Department(s)

TRACKING POSITION ADJUSTMENTS

Example of internal salary roster with manual updates from Eforms

• Positions are loaded based on funding cost center and not owning department

• Funding must total 100% distribution (excluding those partially funded by grants and projects)

• If security access does not allow viewing of other funding sources, contact shared department to verify salary and distribution percentages

• No audit is in place to know whether a position is budgeted at 100% or has matching comp rates

SPLIT FUNDED POSITIONS

FY22

• FTE – Full Time Equivalency

• Counted off distribution % in PBCS

40 hrs per week FILLED or VACANT position = full time or 1 FTE

20 hrs per week FILLED or VACANT position = part time or .5 FTE

• Headcount – Physical body in position

FILLED position = full time position and 1 headcount

VACANT position = full time position but ZERO headcount

• FTE’s are important on E&G cost centers because of mandatory reporting to the State

• The University has an FTE total cap and explanation is required to the State if UTA exceeds that number

FTE VS HEADCOUNT

FTE VS HEADCOUNT

Headcount and FTE columns located in the position data form

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• Fringe benefits on E&G positions are funded partially by the State with the balance being funded by student tuition

• Starting with the FY22 budget

• E&G fringe budget will appear on Departmental Budget Form

• E&G fringe budget will load into UT Share on A3000

FRINGE BENEFITS – E&G

• Fringe calculations are based on current benefit elections at the time data is pulled

• If fringe expenses exceed budget on cost centers, department is responsible for making adjustments to balance budget

FRINGE BENEFITS – E&G AND NON E&G

• Longevity

• Review actuals to estimate budget amount

• Enter whole dollar amount directly on Departmental Budget form in the fringe section (GL 54402 – Longevity Pay)

• Use HCM Reporting Tools/Query Viewer in UT Share to check longevity to ensure it is correct in PBCS

• UTZ_HA_VAC_SICK_LEAV_BAL_DEPT

• CO – enter ARL * Calendar Group – enter time frame * Department ID – enter 6-digit department number

• Visit UT System’s Longevity Pay Schedule

• https://www.utsystem.edu/offices/human-resources/current-employees/benefits/longevity-pay

FRINGE BENEFITS – E&G AND NON E&G

FRINGE BENEFITS – E&G AND NON E&G

FRINGE BENEFITS – E&G AND NON E&G

Enter whole dollars for positions budgeted by lump sum

Add additional fringe for all positions as needed

Verify dollars entered tie to the Departmental Budget Form

Fringe budget will load into UT Share on A3000

FY22

FRINGE BENEFITS – E&G AND NON E&G OTHER POSITION TYPES

Report for estimating fringe for current positions

• MARS > Dashboard dropdown list > Payroll > Fringe Cost Analysis

Link to payroll for current fringe benefit rates

• https://www.uta.edu/business-affairs/payroll/

FRINGE BENEFITS – E&G AND NON E&G OTHER POSITION TYPES

FY20 FY21 FY20 FY21 FY22 FY22

M&O BUDGETING – B LEVEL

Budget M&O at the B-level

Review prior year actuals to estimate budget

FY20 FY20FY21 FY21 FY22 FY22 FY22

Enter whole dollars as lump sum at the B-level

Will load into UT Share at the A-level

M&O BUDGETING – GL LEVEL

FY20 FY20FY21 FY21 FY22

Budget M&O at the GL level

Use to analyze budget vs actual expenses

Enter whole dollars for specific accounts at the GL level

Will load into UT Share at the A-level

BUDGET COMPARISON – PRIOR YEAR VS CURRENT YEAR

• Comparison of Prior Year Final budget to current year Department Working Total budget by cost center for all departments; only budgeted cost centers are shown

• Shows grand total for each department and suppresses cost centers with no data

• Available funding and total budgeted expense should balance to zero for each cost center

• Adjustment options to balance budget

• Wages

• M&O

• Fund transfers

• Contact department unit head to request additional funding

• Verify cost centers are balanced after modifications

• Position funding changes

• Use when Wages and M&O are not available

• Reduce distribution percentage from 100% and reallocate variance to cost center with sufficient funding

• Balance cost centers that share position funding

BUDGET ADJUSTMENT OPTIONS

• Ensure all budgeted positions and salaries are captured and accounted for on the Departmental Budget Form

• Total income and expense line should equal zero

• Do not enter negative numbers

• Make proper adjustments to balance budget, if necessary

• Reconciliation of changes worksheet should agree with the Departmental Budget Form

FINAL REVIEW

FINAL REVIEW RECONCILIATION OF CHANGES

(A) Source of Revenue

(B) Original FY21 Budget = Prior FY Final

(C) Adjustment Description = all modifications in category

(D/E) Increase/Decrease = modification amount

(F) Proposed FY22 Budget = Department Working Total

*Must be submitted by Colleges to Provost Office

*Check with Support Unit VP for requirement

*No longer required by Budget Office

FINAL REVIEW PBCS DEPARTMENTAL BUDGET FORM

Color Key Code

• Yellow: Actuals loaded into PBCS from UT Share

• Blue: Final Budgets from Prior Years

• Red: Baseline Budget including permanent additional funds entered by the Budget Office

• Green: Department Working Total; shows variance between Dept Baseline and Dept Working

• Dark Red: Budget Office Adjustments only

Budget Office adjustments done after PBCS closes to departments

Position data dollars (salary/fringe) and fund transfers entered automatically; salary reserve, M&O, travel, and longevity entered manually

FINAL REVIEW

Other documents created by administrative staff from academic units to help with the budget process

• Guide to PBCS Budget Processing

• step by step instructions for budget review and completion

• Planning Budget from Salary Roster

• Instructions for tracking position adjustments

• Department Check lists (E&G and Other CC)

• Reconciliation of Changes – Academics

• Reconciliation of Changes – Others

• Fund Transfer Rules

All materials available on the Budget Office website under Fiscal Year 2021-2022 Budget Process https://www.uta.edu/business-affairs/budgeting/index.php

QUESTIONS???