Budget Memorandum2015-2016

Budget Preparation for FY16Gather facts. Include all Anticipated Income Categories

• Tax Revenues, Carryover, Interest and other sources of income

Involve all Agents and District Board in process and decisions• Involve CEC to program needs and budget recommendations

Be aware of UK’s share in cost of the Cooperative Extension Program

Refer to “Guidelines for County Program Cost Share for 2015 – 2016”• Base Program Costs• Base Agent Salary Contribution• County Contributions for Benefits

Support Staff SalariesAnticipated salary adjustments

• Up to 2% (should be based on performance)• Counties will complete a Salary Adjustment Form for each county

paid employee• Adjustment should be included in budget plans• All adjustments to salary must be UK approved• If approved, adjustments will be effective July 1, 2015

Recommendation for Counties• If possible, budget a minimum of $10 per hour for starting salary • Starting salary for NEP is now $12 per hour• Special adjustments above the 2% require a letter of support

Subsistence and TravelSubsistence Rates

• CES follows UK Guidelines• Rates in KY differ in Urban Areas (3 rates in KY)• Out-of State Guidelines: Refer to IRS Table 4

Travel• Mileage reimbursement rate effective 1/1/15 is 57.5 cents @ mile• Be aware of all UK Travel Regulations• Reimbursements of all travel must adhere to UK Guidelines• Reference: University of KY Office of the Treasurer• Link: http://www.uky.edu/EVPFA/Controller/files/BPM/E-5-1.pdf

Professional Improvement FundsProfessional Improvement Funds

• Maximum Limit per Agent - $3000• Only budget PI Funds when all other obligations are met

Acceptable Use of PI Funds:• Travel and Subsistence• Registration fees for approved Professional Meetings and activities

Unacceptable Use of PI Funds:• Credit Course Tuition• Agent dues for outside professional, civic or association dues

Additional PI Funds Allocation: • $1,000 for participation in ESP professional meetings (St./Nat.)

Staff Support Funds/MarketingStaff Support Funds

• Funds for Staff Trainings and Development• Examples of Opportunities: Chi Epsilon Sigma, District Secretary

Training, CAFE Staff Appreciation Day and other educational work related trainings• Suggested Guide - $1500 per year, all support staff equal amount

Marketing Extension Items• Resource: CAFE Web Store• CEC Marketing Committee should develop a plan/budget• District Boards may identify appropriate amounts for a line item• Use approved vendors

Postage AllocationPostage costs continually increase

Postage allocation from USDA does not

Counties should review allocation of dollars to penalty mail & their spending history to help determine budget needs

Charges “over” the county postage allotment are charged to counties at the end of the year

Postage spending is reflected in the county budget reconciliation statement

Counties should verify postage through the mail management system as a basis for future allotment allocations

Program Enhancement/Support Funds

Equal appropriations for each agent

Program Support Funds may be appropriated for program assistants

Agents are to develop budgets for use of Program Support Funds• Present to CEC during formation of the county budget• Submit to District Director with submission of overall co. budget

Itemized Expenditure of funds• The financial statement should include receipts• Submit to EDB or CEC (funding body) and District Director before Aug 15,

annually

•District Board must publish the location where the Budget, Financial Statement and most recent Audit/Attestation Reports may be examined• Due September 1• Location must be the Courthouse and not Extension Office

Program Enhancement/Support FundsProper Use

• Expand programs (demo supplies or equipment, support material)• Leader Training for an individual leader (expected to repay as a

program volunteer or refund expenses received

Improper Use:• Funding Program Councils• Expenses benefiting Individuals (i.e. Camp Scholarships)• Salaries, payments, bonuses or gifts to individuals (includes

employees, volunteers or clients)Requirement: • Agents must annually submit a budget for program support funds• Agents must file an expense record with the District Board

Audits, Financial Statements and Attestation EngagementsRequired by Law (KRS 65A.030)

• Become familiar with guidelines on expenses of the EDB Audit• Link: http://lrc.ky.gov/Statutes/statute.aspx?id=42939• Additional Expense: Registration with DLG ($25, $250 and $500)

Following the Audit or Attestation:• Send report to DLG & District Director (use DLG form/format)

Results of the Audit and Attestation must be:• Reviewed with EDB (address recommendations, put into practice)• Actions documented in Board minutes and sent to District Director• Presented to the County Extension Council

Recommended: Use outside firm for audit if handling bookkeeping and have EDB and CEC funds audited when there is a change in treasurers

Budget Forms - DeadlinesFebruary 15

• DB Member and Officer Reporting Form (DLG Reporting Site)• Offset Voucher (Office and Procedure Manual)

o 1 Copy to Tina Ward; 1 Copy to District Director

April 1• Budget Plan Rough Draft (Send to District Director)

April 15• Budget (1 to County Fiscal Court and 1 Copy to District Director)

May 1 – July 15 • Portal Opens/Closes to enter Budget on line for SPGE- DLG• Portal Opens/Closes to pay Registration Fee

Continued Budget Forms - Deadlines

FINALS DUE MAY 1

Memorandum of Agreement with UK• 3 originals to DD (1 for DD, 1 for Business Office, 1 return to Co.)• Electronic copy to DD Support Staff

Schedule of Disbursements• 3 originals to DD (1 for DD, 1 for Business Office, 1 return to Co.)• Electronic copy to DD Support Staff

Salary Adj. Form/Letter/Tax Sheet• 1 original to District Director

Special District Uniform Financial Statement (previous FY)• Department of Local Government Portal

Continued Budget Forms DeadlinesJune 30

• Budget Amendments – Online SPGE (throughout year)

July/August• Tax Rates (send to DD after Fiscal Court approves)

September 1• Annual Financial Statement – District Board must publish the

location where budget, financial statement, and most recent audit/attestation reports may be examined• Must be in Court House, not Extension Office

September 30• End of year Actual expenses – Online SPGE

Continued Budget Forms Deadlines

Audits: Deadline as required by DLG and beginning 2016• Send a copy to DD after completion• Post to DLG as a PDF upload with frequency of audit/attestation

based on level of annual revenues and expenditures

All Revisions during the year to Memorandum of Agreements should be dated and clearly marked as revision• 3 originals should be sent to District Director’s office (1 for DD,1 for

business office, and 1 to return to County after signatures are complete)

BEST WISHES FOR A SUCCESSFUL YEAR OF FISCAL REPORTING