ALCORN STATE UNIVERSITY

Budget Planning Guide

P R E P A R E D F O R :

FISCAL YEAR 2019 - 2020

ALCORN STATE UNIVERSITY

Budget Planning Guide

P R E P A R E D B Y

Alcorn State University

Division of Finance & Administrative Services

BUDGET OFFICE

CONTACT:

Pamela Neal, Director of Budgets & Financial Analysis Phone: 601.877.4056 • Email: pneal@alcorn.edu

https://www.alcorn.edu/offices/finance-and-administration/budget-office

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Table of ContentsINTRODUCTION:

Introduction .................................................................................page 2 Goal ..............................................................................................page 2 Overview ......................................................................................page 2 Budget Planning-Resources ......................................................page 2 Budget Planning-Factors ...........................................................page 3 Process Overview .......................................................................page 5 Terminology ................................................................................page 6 Procedures ...................................................................................page 8 INSTRUCTIONS FOR BANNER FORMS: FGIBAVL (Organization Budget Status) ........................... page 10 FGIBDST (Budget Availability Status) ............................... page 12 FBABDRA (Budget Request by Account) ......................... page 15 FBIBUDG (Budget Query Form) ....................................... page 18 Position Lines .............................................................................. page 19

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INTRODUCTION

THIS GUIDE IS INTENDED FOR: Budget Managers Administrators Administrative Assistants Goal

To provide Budget Managers, Administrators, and Administrative Assistants with a general guide for Budget Planning. Budget Managers shall use this guide as support while determining departmental priorities and strategies.

Overview

Each spring, the Executive Council begins the annual Budget Planning process for the upcoming fiscal year (July 1 to June 30). The University’s Budget Office defines the process, maintains the budgeting schedule, assists with the tools (including a computerized budget system, reports, templates and data management worksheets), and training that supports the annual development of departmental and unit operating budgets.

Budget Planning - Resources

Budget Managers must operate within resource constraints, and a reasonable level of resources should be reserved to meet contingencies. This means ensuring that restricted resources are used for their intended purpose prior to using unrestricted resources for the same purpose.

Funding resources may include: *Tuition *State Appropriations Income from Sales and Services Indirect Cost Recovery Income Investment Income Ayers Program Funds Ayers Interest Revenue from Auxiliary Enterprises Other Sources * Assumptions: Note that tuition will be projected flat. Further, during Budget Planning Budget Managers should assume that there will be no increase in appropriations.

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Budget Planning – Factors

Sound Budget Planning involves allocating adequate resources for maintaining facilities, supporting employees in meeting assigned tasks, and identifying required supplies and equipment. Budget managers must support equipment needs, but also prioritize the use of resources by aggressively seizing opportunities to share services and equipment across departments and units when practical.

Consider these factors while Budget Planning: Summer School Budget Escalation Heating Electricity Cable Telephone New E&G Buildings coming online Copier Lease/Service Postal Charges Travel Auto Fuel Waste Management Scholarships Advertisements Library Serials Subscriptions Dues Professional Development Registration Fees Software Acquisition Software License Agreements Printing & Duplicating Services Lab Supplies Uniforms Rental – equipment Equity Adjustments Seasonal Workers Student Workers New Positions Promotions Adjunct Faculty Overloads Minimum Wage adjustments Fringe Benefits adjustments (current rate 35%) Unemployment Insurance Premiums Worker’s Compensation Premiums Property Insurance Premium Employer’s share of State Retirement Tort Liability

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THIS DOCUMENT IS DIVIDED INTO FOUR SECTIONS: Section I Process Overview Section II Terminology Section III Procedures Section IV Position Lines

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PROCESS OVERVIEW

During Budget Planning The Budget Planning process begins with the development of fiscal assumptions and tentatively ends with loading the approved budget information into Alcorn State University’s Banner database for the upcoming fiscal year. Some of the steps in the process are as follows:

• Budget Personnel will create a budget phase

• Budget Managers will use this phase to submit budget requests

• The Executive Council will review budget requests and make recommendations

• The President will review the modified budget requests for final approval

• Budget Office Personnel will complete all required reports for submission to IHL.

• Budget Office Personnel will load approved organization budgets and maintain these budgets in the Banner Finance module

• Budget Office Personnel will finalize, print, and submit the University’s Bound Budget to IHL

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TERMINOLOGY

1. CHART OF ACCOUNTS (COA) A Chart of Accounts (COA) defines the accounting distribution used on all

transactions processed in the Banner Finance module. 2. BUDGET ID FY2020 Describes the Fiscal Year for which requests are being made. 3. BUDGET PHASE

DEPT20 Budget Managers will use this phase to submit budget requests systematically through Banner. Supporting documentation will be routed to the area vice president.

4. QUERY To call up information in a form for the purpose of viewing or retrieving 5. DATA ENTERABLE Forms that allow information to be entered or changed 6. FISCAL YEAR FY2020, 2020 or 20 Fiscal Year defines an accounting period of 12 months. 7. FOAPAL An acronym created by the first letter of seven budget elements defined as follows:

Fund - the Fund Code is the first set of numbers in the account number string. It identifies the source as general, auxiliary or restricted. The fund code is 6 digits long.

100000 Educational and General

200000 Auxiliary Enterprises 3xxxxx Restricted Funds

Organization - the Organization Code is the second set of numbers in the account number string.

It identifies the particular department or unit. The organization code is 6 digits long.

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Account - the Account Code is the third set of numbers in the account number string.

It identifies the type of expenditure. The account code is 6 digits long. For E&G and Auxiliary Budgets, Account Codes are budgeted on the Higher Level Account Codes but expensed on Lower Level Account Codes. Higher level account codes are listed below. Lower level account codes can be found on the chart of accounts located inside Banner. The Higher Level Account Codes are:

404000 – Travel 405000 – Contractual Services 406000 – Commodities 408000 – Capital Outlay 610000 – Salaries 620000 – Wages 630000 – Fringe Benefits Program - the Program Code is the fourth set of numbers in the account number string.

It identifies the function of the Organization. The program code is 2 digits long. 00 Non Departmental (Auxiliary)

01 Instruction 02 Research 03 Public Service 04 Academic Support 05 Student Services 06 Institutional Support 07 Physical Plant 08 Scholarships & Fellowships

Activity (not used)

Location (not used)

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PROCEDURES

Banner Forms Used to Assist in Submitting Budget Requests

The purpose of this section is to identify forms used to submit budget requests systematically through Banner. This section also provides step-by-step instructions for each form.

Form Description Banner Name Budget Availability Status FGIBAVL Organization Budget Status FGIBDST Budget Request by Account FBABDRA Budget Query Form FBIBUDG

View a summary of your current budget availability status by accessing form FGIBAVL.

To use FGIBAVL an account number is required. It is recommended that 404000 (the code for travel) be used. Also, FGIBAVL captures requisitions with a status of incomplete, unapproved and approved.

View details of current budget status FGIBDST. Form FGIBDST does not require an

account number. Also, form FGIBDST captures only requisitions with a status of complete.

To submit budget requests for the upcoming fiscal year each department will access FBABDRA, the Budget Request by Account form.

Use FBIBUDG, the Budget Query form to review your entries.

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VIEW A

SUMMARY

OF YOUR ORGANIZATION’S

CURRENT BUDGET STATUS

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Instructions for Viewing the Budget Availability Status Banner Form: FGIBAVL

Directions to the Budget Availability Status Form From the General Menu Screen double click the following: Banner Finance System Menu General Ledger General Account Query Forms General Budget Query Forms Budget Availability Status

1. Chart: If this entry does not default, always enter A 2. Fiscal Year: This entry will default. (It is the CURRENT 2 digit fiscal year abbreviation.

This is the last two digits of the current fiscal year. For example: for FY 2020 enter 20). 3. Index: DO NOT ENTER ANYTHING HERE 4. Commit Type: Select BOTH This section has a drop down box that displays three choices:

Committed will display only prior period encumbrances. Uncommitted will display only current budget information. Both will display all.

5. Fund: Once the Organization Code is selected, the Fund Code will default. *Note: The only time you will be required to enter the Fund is when you wish to view Grant Account information. In this instance the Organization Code and Program Code will default.

6. Organization: enter the 6-digit organization code for the departmental budget you wish to display. *Note: The Organization Code is the only code you will be required to enter when you wish to view Educational and General or Auxiliary Account information. The Fund Code and Program Code will default.

7. Account: Enter the desired higher-level account number. (To effectively view all lines it is recommended that you enter 404000).

8. Program: The Program Code will default when the Organization Code is entered. This defaulted number must NEVER BE CHANGED.

**** To continue to the Account Information Section, select NEXT PAGE from the bottom left corner of the screen. 9. The Account information will populate based on the criteria that was set above.

Adjusted Budget Column displays the total amounts budgeted for each higher level account.

YTD Activity Column displays the total amount spent year to date. Commitments Column displays the total amount that has been obligated due to an

encumbrance. Available Balance displays the total of the Adjusted Budget less the YTD Activity and

Commitments.

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VIEW

DETAILS

OF YOUR ORGANIZATION’S

CURRENT BUDGET STATUS

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Instructions for Viewing Organization Budget Status Banner Form: FGIBDST

Directions to the Organization Budget Status Form From the General Menu Screen double click the following: Banner Finance System Menu General Ledger General Account Query Forms General Budget Query Forms Organization Budget Status

1. Chart: If this entry does not default, always enter A 2. Fiscal Year: This entry will default. (It is the CURRENT 2 digit fiscal year abbreviation.

This is the last two digits of the current fiscal year. For example: for FY 2020 enter 20). 3. Index: DO NOT ENTER ANYTHING HERE 4. Query Specific Accounts: Leave the box unselected to view all accounts. (However, if

you wish to view only a specific account, enter a check mark here by using your mouse to “click” the box).

5. Include Revenue Accounts: This box is checked by default. (However, “Uncheck” this box to view only expense accounts.

6. Commit Type: Select BOTH This section has a drop down box that displays three choices:

Committed will display only prior period encumbrances. Uncommitted will display only current budget information. Both will display all.

7. Organization: enter the 6-digit organization code for the budget you wish to display. *Note: The Organization Code is the only code you will be required to enter when you wish to view Educational and General or Auxiliary Account information. The Fund Code and Program Code will default.

8. Fund: Once the Organization Code is selected, the Fund Code will default. *Note: The only time you will be required to enter the Fund is when you wish to view Grant Account information. In this instance the Organization Code and Program Code will default.

9. Program: The Program Code will default when the Organization Code is entered. This defaulted number must NEVER BE CHANGED.

10. Account: To view all accounts, leave this section BLANK. (Enter the desired account number to view a specific account).

11. No other entries are necessary in this section.

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To continue to the Account Entry Information Section, select NEXT PAGE from the bottom left corner of the screen.

12. The Account information will populate based on the criteria that was set above.

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Adjusted Budget Column displays the total amounts budgeted for each higher level account.

YTD Activity Column displays the amounts spent year to date on each of the detail account lines.

Commitments Column displays amounts that have been obligated due to an encumbrance.

Available Balance displays the total of the Adjusted Budget less the YTD Activity and Commitments. Each line totals ACROSS individually.

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13. To view the details of an accounting transaction, “click” on that line and from the menu bar select RELATED. Now select TRANSACTION DETAIL INFORMATION.

14. To return to the previous screen select from the top left corner of the screen.

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SUBMIT

YOUR ORGANIZATION’S

BUDGET REQUESTS

FOR THE UPCOMING FISCAL YEAR

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Instructions for Completing the Budget Request by Account Banner Form: FBABDRA

Directions to the Budget Request by Account Form From the General Menu Screen double click the following: Banner Finance System Menu Budget and Position Control Budget Request by Account

1. COA: If this entry does not default, always enter A 2. Budget ID: enter FY2020. (This is the fiscal year for which the request is being made). 3. Phase: enter DEPT20 (This is the Department Phase and the 2 digit fiscal year abbreviation

for which the request is being made). 4. Index: DO NOT ENTER ANYTHING HERE

Fund: this entry will default once the organization is entered. *Note: The only time you will be required to enter the Fund is when you wish to view Grant Account information. In this instance the Organization Code and Program Code will default.

5. Organization: enter the 6 digit Organization Code. Note: The Organization Code is the only code you will be required to enter when you wish to view Educational and General or Auxiliary Account information. The Fund Code and Program Code will default.

6. Program: The Program will default when the Organization is entered. This defaulted number must NEVER BE CHANGED

7. No other entries are necessary in this section.

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To continue to the Account Entry Information Section, select NEXT PAGE from the bottom left corner of the screen.

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8. The accounts along with currently budgeted amounts are displayed. 9. The Change Amount Column will be used to increase or decrease the Current Amount

Column to reflect the desired amount to allocate to all categories except Salaries and Fringe Benefits. (The Budget Office will update those amounts). Notice that the Budget Column (located at the far right) is not affected.

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Now that you are familiar with this form you may continue with the request.

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10. At the Change Amount Column, enter the amount by which you want to increase/decrease the Current Amount. (For example: If the Current Amount of Travel is 20,320 and you wish to reduce that amount by 4,000, enter -4000 in the Change Amount Column and select the “tab” key or the “arrow up/down” key. The amount displayed in the Current Amount Column will now reflect 16,320. To add the 4,000 to another account, enter 4000

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at the appropriate line select the “tab” key. Notice that the account total has now been increased by $4,000.

11. Continue adjusting the other accounts so that they will reflect the desired amounts for the next fiscal year.

REQUEST FOR ADDITIONAL FUNDS Budget Managers can make a request for additional funds during the Budget Planning process by completing the Budget Request by Account Form in Banner. Justification for the escalation is required. Submit justification letter and all supporting documentation to the department’s Area Vice President for review.

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REVIEW

YOUR ORGANIZATION’S

BUDGET REQUEST

FOR THE UPCOMING FISCAL YEAR

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Instructions for Viewing the Budget Query Form Banner Form: FBIBUDG

Directions to the Budget Query Form From the General Menu Screen double click the following: Banner Finance System Menu Budget and Position Control Budget Query

1. Chart: If this entry does not default, always enter A 2. Budget ID: enter FY2020. (This is the fiscal year for which the request is being made). 3. Phase 1: DEPT20 4. Phase 2: 19DEPT 5. Phase 3: 6. Index: DO NOT ENTER ANYTHING HERE 7. Fund: Once the Organization Code is selected, the Fund Code will default. 8. ORGN: enter the 6 digit Organization Code 9. Account: Leave this section blank 15. Program: The Program Code will default when the Organization Code is entered. This

defaulted number must NEVER BE CHANGED. 11. Activity: DO NOT ENTER ANYTHING HERE 12. Location: DO NOT ENTER ANYTHING HERE 13. Selection Criteria 14. Key 1: Account 16. Key 2:

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To continue to the Budget Query Form, select NEXT PAGE from the bottom left of the screen.

17. DEPT20: DATA 1 field displays the recent request for the upcoming fiscal year. 17. 19DEPT: DATA 2 displays the original budget totals prior to the request. 18. To view the Budget Total Information select NEXT PAGE from the bottom left corner of the screen.

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POSITION LINES

Existing Positions Official updates to personnel records must be submitted to Budget, Human Resources, and Payroll via Electronic Personnel Action Form (ePAF). An electronic copy of the final approved budget will be provided to each vice president for distribution to departments.

New Position In order to propose a new position during Budget Planning, a Position Requisition Form must be submitted. Use this form to describe details about the position, and to explain how the position will be funded. The position must be approved by the President before it is created in the Banner System and added to the budget by Budget Office Personnel.

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