UNIVERSITY OF NORTH DAKOTA BUDGET OFFICE MEMORANDUM

Transcription

1 UNIVERSITY OF NORTH DAKOTA BUDGET OFFICE MEMORANDUM DATE: April 20, 2018 TO: FROM: RE: Deans, Department Heads and Administrators Cindy Fetsch and Jennifer Moe, Budget Office Personnel, Operating and Equipment Budgets Completed budgets are due by 4:30 on Thursday, May 31, If budgets are done prior to the May 31 deadline, please do not wait to submit them. An notification to Cindy Fetsch and Jennifer Moe of your completion is sufficient. The budget process exists to provide a mechanism for compiling an accurate spending plan for the coming year. The overall guidelines for the preparation of the budget document are determined, by the State Board of Higher Education and existing legislation. In addition to meeting the budgeting requirements, the salary budget is processed in the PeopleSoft HRMS Job Data table, which will determine employees compensation effective July 1, In order to process an accurate payroll effective July 1, 2018, it is extremely important that the guidelines be followed and the timelines met. Coordination between the Budget Office and respective VP offices will take place throughout the budget process. If you have questions or problems as you work through the budget process, we will try to assist in any way possible. BUDGET PROCESS In order to meet current reporting requirements and provide a more accurate comparison of actual to planned activity, all funds in which revenue, expenditures and/or transfers will be recorded for FY2019 must be budgeted. The funding ranges we will be verifying for budgets is as follows; , , , and Instructions are provided under the section Budget Module FIN Department Budget Entry and HRMS Budgeting in this document. In addition, more detailed instructions are posted on the Budget Office website. You may find (loan funds) and (agency funds) in FIN Department Budget Entry (operating). Please verify that the fund should still be active and the fund and department combination are valid. If they are not, please Jennifer at jennifer.moe@und.edu so they can be removed from your department. 1

2 The appropriation bill (SB 2003) continues to use a streamlined budget framework. The appropriation includes an operations category (previously salaries, operating, equipment and various special) and a capital assets category. For annual budget purposes, the budget categories of salaries, operating and equipment will still be used. Flexibility now exists to re-budget throughout the year within operations without Board approval. Re-budgeting base (reallocation) (30000 fund range) decisions must be explicitly approved at the division level (President/Vice President) unless otherwise delegated, during annual budget or throughout the year. No transfers out of the capital assets category are permitted. SALARY INCREASES Included with this memo are the Annual Budget Guidelines for salary increases. Procedures established for UND are as follows: The 2017 Legislative Assembly did not provide funding for general salary or equity increases for the biennium. Therefore, UND will not entertain general salary or equity increases for FY19. Faculty promotions are the responsibility of the college to cover, additional dollars will not be provided for this increase. Market adjustments allowed with approval of the President or respective Vice President. Rationale for these adjustments will include changes in level of responsibility as documented by a Position Description; and changes in band and/or job family. One-time payments allowed with President or respective Vice President Approval. All salary increases are subject to availability of funds and President and/or respective Vice President Approval. Source of funding for all increases will need to be identified. Departments are responsible for preparing and retaining documentation to support salary increase decisions. Performance evaluations consistent with current board and institutional policy must be on file. Please verify there is an evaluation on file. The UND Human Resources office retains all completed UND and Medical School Evaluations for benefited staff. Evaluations were due to Human Resources March 31, Completed UND benefited faculty evaluations are retained in various offices. Please contact the office of Vice President of Academic Affairs for further clarification on UND benefited faculty evaluations. The Medical School benefited faculty evaluations are retained in the Medical School Academic Affairs office. Per the Salary Administration policy, an employee who has not had an annual evaluation completed, and their supervisor, are not eligible for a fiscal year increase. Human Resources is tracking the receipt of staff evaluations in HRMS. For a current list or if you have questions, contact Heidi Gerszewski at or Peggy Varberg at

3 Newly hired employees who have not completed their initial 6 month probationary status by June 30th, 2018, are not eligible to receive any additional salary increase. The Budget Office will be monitoring this. Please keep in mind that upon completion of an employee s probation they will qualify for a probationary increase. Please make sure to budget accordingly for the anticipated probationary increase, as additional dollars will not be provided for this increase. BUDGET MODULE FIN DEPARTMENT BUDGET ENTRY and HRMS BUDGETING Please refer to the Budget Office website for further instructions on the Budget Module. The Budget Module should include all positions which you intend to fill during FY2019 using FY2019 budgeted dollars (based on current information) and the corresponding source of funds. This includes positions paid from all funding sources, including grants & contracts. Please note that information in the Budget Module is current. Any changes made permanent will show up in the Budget Module. Changes that impact positions on or before June 30 th for the current fiscal year should be included in the budgeting process. Proper paperwork (new hires, probationary increases, terminations, etc.) still need to be submitted through the Payroll Office. Permanent changes for FY18 submitted to the Payroll Office with an effective date on or before 4/1/18 should already show up in the Budget Module. Market data for staff will be sent out by Human Resources. If you have questions concerning the market data, please contact Human Resources. If you have single occupant positions that are paid using an hourly rate, the Starting Budgeting Salary (current fiscal year) rate and the Annualized Rate (hourly rate listed above) for the next fiscal year need to be carefully reviewed along with the Department Budget Table, Current FY Amt and Total DBT. Even though hours are not listed in the Budget Module, departments should be aware of how many hours an individual is employed and should be able to calculate the hours times the Annualized Rate (hourly rate listed above) to equal the Total DBT. This also works for single occupant positions that are paid using a monthly rate. Please identify the number of hours and or number of months in the comment section of the Budget Module. Please note that the Attorney General has indicated that in order for an employee to receive fringe benefits, that employee must occupy a single position; not be part of a pooled position. 3

4 New Positions The mechanism for adding a new position is to complete and submit a Position Request/Change Form to Human Resources. Upon creation of the new position, you will be able to view and enter dollars for the new position in the Budget Module. Pooled Positions Please note that any changes to the individual employees in the pools (terminations, salary changes, etc.) require a Job Change or Separation Form to be processed through the Payroll Office for an effective date of July 1, These changes should be submitted as early as possible to Payroll, but no later than 4:30 on July 16, FTE Section Please verify the Current FTE, Next FY FTE and Position FTE fields for accuracy. Please keep in mind for staff 1 FTE equals 12 months 100% time, for faculty 1 FTE equals 9 months 100% time. If you are changing FTE you need to do a Job Data Change Form and submit it to the Payroll Office. Vacant Positions For positions that are being vacated and a replacement will be hired, please make sure to budget the dollars in the vacated position (not in a pool position) as we will not upload positions to the department table with zero dollars. Please carefully evaluate ALL vacant positions and if you are not going to hire within a six month window please make sure to put the dollars in a pool and not leave the position sitting as vacant with dollar amounts. Inactivate Positions Please take some time to review positions that you are not using or do not have funding for at this time. These types of positions should be put in an inactive status. If the position is vacant and there are no dollars at this time to hire, please make sure funding has been removed and a Position Request/Change Form has been submitted to Human Resources to inactivate. In the future, these positions can be activated with Human Resources upon obtaining funding. Positions with no Department Budget Table (DBT) For positions that are not budgeted in the Budget Module, (no funding entered, funding removed for FY19, etc.) the Budget Office will work with Human Resources to inactivate them. The positions can be activated with Human Resources upon obtaining funding. Terminated Employees If employees appear in the Budget Module that have since been terminated or will be terminated prior to July 1, 2018, you must follow the procedures in Manager Self Service so these employees are terminated with the appropriate effective date. In addition you will need to remove/adjust funding if necessary in the Budget Module. 4

5 Chair Supplements (Stipends) Chair supplements are not part of base pay and should not be included as base funding in their faculty position. Please submit an Additional/Reduce Pay Request to Payroll for compensation. Fringe Benefits Fringe benefits are not budgeted under a position number. Fringe benefits for appropriated, local funds, and Student Fees are budgeted in FIN Dept Budget Entry. The amount budgeted for fringe benefits should be reviewed and adjusted to take into consideration the adjusted salary levels and any differences based on your current staffing. Budget appropriated fringes at FY2018 levels. If FY2019 fringes are not sufficient, please call Cindy at Please refer to the Payroll Office website for the FY19 Benefit Calculator. Year to date expenditures in each fund may also be a good indicator to review. Health Insurance Premium Health Insurance monthly premium will remain at $1, on July 1, Please be aware that any increase in health insurance that is to be in effect for the biennium will be paid a month in advance (pay periods June 1-15, 2019 and June 16-30, 2019), so the June payments will pay the July 2019 health insurance premium. If your calculations are showing a deficit, please contact Cindy at cynthia.fetsch@und.edu or to review. Workers Compensation Rate Please contact the Payroll Office if you have questions regarding the Workers Compensation Rate. Social Security The Maximum Taxable Earnings will increase from $127,200 in 2017 to $128,400 in The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount. Accumulated Leave Please note that it is a department s responsibility to fund the payout of accumulated vacation and sick leave when an employee terminates. Although these changes cannot always be anticipated, due to the diversity of sources of funds used to support institutional activities, there is no central funding to absorb these costs. Search Dollars There will no longer be staff or faculty search dollars available centrally. If you are in need of search dollars, please use the dollars that are in the vacant position you are looking to fill. If you have questions, please contact Cindy at cynthia.fetsch@und.edu or

6 Reallocations Please note that all reallocations require VP/Presidential Approval prior to budgets being submitted in the Budget Module. Please contact Cindy at or for proper paperwork submittal. Reallocations include: Permanently moving dollars from operating/equipment to salary/fringes or salary/fringes to operating/equipment. Reducing the base in a vacant position Reducing the base in a pool position Positions using Grants & Contracts Funding Please budget all positions that will use Grants & Contracts funding sources for FY2019. Contact Grants & Contracts to set up new funding sources for FY2019. Once set up, the combo codes will be available in the Budget Module. Funding changes in the Department Budget Table Please remember any funding changes that you make in the Budget Module will be uploaded to the Department Budget Table in PeopleSoft effective 7/1/2018. If you have made funding changes in the Department Budget Table through a Position Funding Form these changes are only effective for FY2018. If the changes you made are base changes and you want to carry these changes forward to FY2019 they need to be made in the Budget Module. If the position funding is going to be different than the base funding completed in the Budget Module, you will need to complete a Position Funding Form and submit it to Payroll with an effective date of 7/1/2018. We do recognize that these adjustments may be necessary; however, every effort should be made to minimize the amount of paperwork flowing through the Payroll office adjusting funding sources with an effective date of 7/1/2018. Faculty Salary Funding Sources The Vice President of Research & Economic Development would like Faculty salaries split to distinguish between research and non-research salary in FY19. Fund Institutionally Funded Research, has been set up to track institutionally funded research. Information will be sent out regarding the % of time allocated to research as soon as available. 6

7 BUDGET MODULE INSTRUCTIONS We have compiled detailed instructions that you can view or print out on the Budget Office website that will assist you in reviewing and completing your budgets. The Budget Office will be verifying that a budget has been prepared for all funds listed for the department. A listing of your fund numbers can be found on the Budget Office website. As stated above, budgets should be prepared for all funds in the (funds within the ranges of and may have project numbers that need budgets), , and fund number ranges within which you expect to incur expenditures, receive revenue or process transfers during FY2019. Please note that grant and contract funds ( ) are budgeted as the awards are set up. Therefore, operating and equipment budgets are not needed as part of the operating budget process for grant and contract funds. If a budget is being prepared for funds that are small or have minimal activity, you are encouraged to consider consolidating and inactivating funds. If a decision has been made to inactivate a fund, please run a trial balance making sure there are no dollar amounts listed under the accounts If there are dollar amounts listed under those accounts please clean them up so they are at zero. Once they are all zero you can send Payment Services an requesting to inactivate the fund and an to jennifer.moe@und.edu so the fund is Not Budgeted in the Budget Module. Revenue and Expenditure Budgets are mandatory Departments will be required to establish both revenue and expenditure budgets on all funds (ranges are listed above) based on budget projections. Revenue budgets are necessary (except ) so that transactions using revenue account codes, processed through the Student Finance Module (deposits and accounts receivable transactions) and the Finance Module (journal entries and journal imports), will post without budget errors. Expenditure budgets are necessary so that transactions using expense account codes processed through the Finance Module (vouchers, journal entries, journal imports, journal vouchers and purchase requisitions), will post without budget errors. 7

8 Specifically for Primary and Auxiliary Units - MIRA Account Codes In order to integrate MIRA with the annual budget process, please use the following account codes: Strategic Investment Fee (Participation Fee) Use to budget your department Participation Fee Note: This is the 15.8% of your unrestricted revenue sources. It allows primary units to capture the participation fee expense amount for local funding sources. This account will be excluded from the load into PBCS since PBCS calculates this number based on entries in revenue section Support Unit Allocation Cost Use to budget your department Support Allocation Cost Note: This allows primary units to capture the amount of service unit allocation for local funding sources. This account will be excluded from the load into PBCS since PBCS calculates this number based on Service Unit budget amounts and unit s last year s percentage allocation drivers. Primary, Auxiliary and Service Units: Cash Balance Dollars (Revenue) Use to budget your department cash balance This amount should tie to the transfer from cash balance amount entered in PBCS This account will not be used for actual transactions, only to budget and will be loaded into PBCS s Transfer from Cash Balances. Note: We will need to track the actual usage of cash balances and will provide instructions later for how to handle actual transactions Local Funds All local funds where expenditures will be incurred or revenue received during FY2019 require a budget. Please keep in mind that these are budgets (plans) based on current information. Departments will experience the impact of various inflationary factors in different ways (for example, increased costs related to energy prices). It is the responsibility of the department to plan to operate within the limits of available funding, making adjustments as needed to deal with the changing cost pressures. For fund numbers where income is provided from Student Fees, the transfer in amount must agree with the approved allocation provided last fall. Alumni Foundation Funds All 26### funds must be budgeted for revenue and expenses for FY2019. Budget the amount you expect to receive for both revenue and expense or look to past years as an estimate of how much to budget. 8

9 Program Fees and Course Fees Please include budgets for all program fees and course fees. This would include anticipated revenue for FY2019, carry-forward, and expenditures. Increased Costs to be considered when completing operating budgets Please find below a few items that we have been notified will be changing for FY2019. A more detailed list may be provided by Payment Services. If departments have One Stop Student Services process credit card transactions, the department will need to budget the merchant fee that will be charged back to the department. Please contact One Stop Student Services with questions regarding the fee. Long Distance Rate Increase Effective March 16, 2018, long distance rates increased to the following amounts: $0.08 per minute intra/interstate, from $0.04 per minute $0.11 per minute Canada, from $0.09 per minute Cost plus 25% markup for international calls, from cost plus 10% markup Motor Pool Vehicles New estimated rates were released on March 1, 2018, to assist in planning state fleet costs. The estimated rates are for planning purposes only and may be adjusted in the future. Postage has increased from $0.49 to $0.50. Below are the ND employee in state lodging rates for October 2017 through September 2018 Operating and Equipment budgets are not necessary on grant funds. PBCS and Budget Module As indicated by the Annual Budget Calendar, we are reducing your need for double entry. Budgeting information will be imported into PBCS from the PeopleSoft Budget Module; therefore your entry into PBCS should be limited to Grants & Contracts revenue and operating expenses. We will still want you to verify that the upload is displaying your planned expenses and revenues correctly. For this year, we are not asking you to estimate your yearly Grants & Contracts revenue, but to capture what awards you have in hand that are crossing into the FY19 fiscal year. 9

10 Carry-forward Departments that generate their own revenue (for example, auxiliaries and recharge centers) may include projected available balances as of June 30, 2018, in their expenditure budgets (see MIRA Accounts above). Please contact Cindy at or if a critical need for carry-forward exists (for example; orders placed but not received, specifically funded projects that will not be completed at year end). These types of situations will be considered on a case to case basis. Graduate School Graduate School Tuition Waivers Policy please refer to their website. Please remember, if the Graduate Assistant is not returning after July 1, 2018, termination paperwork must be submitted to Payroll or they will continue to get paid. In addition you will need to remove/adjust funding if necessary in the Budget Module. FTE Reduction Report The FTE Reduction Report needs to be filled out and ed to the Budget Office (Cindy Fetsch and Jennifer Moe) upon completing your budget. Finally, the FY2019 Annual Budget will be sent to the Board Office on June 26, Each division will be notified when the FY2019 Annual Budget is approved. As always, please feel free to contact the Budget Office with questions regarding any of the information contained in this memo or for assistance with Budget Module. Cindy Fetsch cynthia.fetsch@und.edu Jennifer Moe jennifer.moe@und.edu Connie Gagelin connie.gagelin@und.edu