Budget Manual FISCAL YEAR SAN FRANCISCO STATE UNIVERSITY BUDGET ADMINISTRATION AND OPERATIONS OFFICE

Transcription

1 Budget Manual FISCAL YEAR SAN FRANCISCO STATE UNIVERSITY BUDGET ADMINISTRATION AND OPERATIONS OFFICE Date Created: 4/27/18 Date Revised: 04/19/19

2 Table of Contents CAMPUS BUDGET FRAMEWORK... 3 BUDGET CYCLE... 4 CAMPUS UNITS DEVELOP BUDGET PLANS... 5 BEGIN BUDGET MEETINGS WITH CABINETS... 5 COMPLETE BUDGET MEETINGS WITH PRESIDENT/CFO/CABINET... 5 PLANNING AND BUDGETING AT THE CABINET-LEVEL... 6 FINANCIAL PROJECTIONS... 6 REPORTING REQUIREMENTS... 7 TIMELINE FOR COMPLETION... 9 FY PRELIMINARY BUDGET PLANNING ASSUMPTIONS ENROLLMENT REVENUE EXPENDITURES INSTRUCTIONS & GUIDELINES FOR THE BUDGET WORKBOOKS GUIDELINES NEW FUNDING PERSONNEL BUDGETING GENERAL SALARY INCREASES FUNDING STUDENT WAGES OTHER COMPENSATION BENEFITS DEBT SERVICE INTERNAL TRANSFERS SUPPLIES & SERVICES TRAVEL AND TRAINING PROFESSIONAL SERVICES CAPITAL EQUIPMENT ADMINISTRATIVE INDIRECT COST ALLOCATION BUDGETING REVENUE USE OF LAG DOLLARS (SALARY SAVINGS) CARRY FORWARD FUND BALANCE Page

3 THE BUDGET WORKBOOKS (DATA INPUT TAB) INSTRUCTIONS CAMPUS MULTI YEAR PLANS FOR OPERATIONS CAMPUS MULTI YEAR PLAN TEMPLATE CAPITAL BUDGET FRAMEWORK FUNDING THE CAPITAL PLAN BUDGETING PROCESS PROJECT BUDGET DEVELOPMENT ACCOUNTING, REPORTING AND CONTROLS APPENDIX A: THE STORYLINE APPENDIX B: FUNDS INDEX APPENDIX C: REQUIRED LEVELS OF BUDGETING FOR REVENUE & EXPENSES APPENDIX D: CENTRALLY FUNDED BENEFITS P age

4 CAMPUS BUDGET FRAMEWORK The budget is an important annual planning document for SF State. The budgeting strategy objective is to: Ensure a solid financial position for SF State to maintain its current service level Prevent the extension of base operations beyond current revenue capacities Maximize the university's ability to respond to favorable variances throughout the course of the year The university s budget process has permitted the administration, with significant assistance from the Cabinets, to identify priorities and allow SF State to make the most of existing strengths or improve weaknesses in line with the campus strategic priorities. This year s budget development process is an ongoing, budget assumptions, scenario driven, multi-year process that is aligned with the strategic financial planning of our campus. Under the leadership of CFO VP Carter the expectations were set by establishing annual targets for cost savings and reductions based on the operational efficiencies, process improvements, organizational structure and procurement savings from 23C procurement; set annual targets for revenue growth in non-state allocations and tuition categories; phased growth in enrollment and master enrollment plan to match housing offering and expansion of online courses. The processes involved in reaching these goals, influence the distribution of campus resources. SF State takes a prudent approach to projecting revenues given current uncertainties due to the external environment. Base increases to the operating budget are funded only through the reallocation of funds from the existing base budget or by state allocation s base increases. Savings realized during the course of the fiscal year will result in one-time budget allocations to support qualitative improvements in academic programs and facilities consistent with the established priorities of the university. The Vice Presidents have great latitude in reallocating funds within their areas of responsibility. In addition to unrestricted operating allocations, many units have other sources of revenue, such as campus fees, lottery, gifts, grants, and sponsored research. The President and Cabinet Vice Presidents direct the resource allocation process, including the creation of the operating and capital budgets. The Budget Administration and Operations (BAO) office, in collaboration with Student Affairs & Enrollment Management and Academic Resources advises on enrollment, revenue and expenditure assumptions, budget considerations, university-wide priorities relative to resource allocations, and institutional policies relating to finances. 3 P age

5 BUDGET CYCLE In SFSU budget development typically starts right after the Governor s January budget. SFSU starts Budget Framework in February. Campus Units develop budget plans in March and begin budget meetings with cabinets and VP in April. The CSU will issue preliminary campus budget allocations in a coded memo, referred to as the B-letter in May or June. Final allocations are provided to campuses in July or August after the State has finalized its budget, which is required in decree by June 30 th. The budget process for distributing new resources (or reductions) is managed by the President and its cabinet. The process usually occurs between February and May. The Budget Office completes the consolidation of the base budget plan by June 30 th, and makes changes as necessary once final allocations from the CSU are communicated. Any late changes may be distributed to the campus or worked into the following year s budget plan. In August each year, SF State is required to submit its final budget plan to the CSU. The Chancellor's Office will consolidated CSU budget and provided to the Department of Finance as the CSU s official budget plan for the given fiscal year. Each unit develops or refines their budget for the upcoming fiscal year. The campus and selfsupport units develop multiyear plans that include an annual budget plan and projected plans 4 P age

6 for future fiscal years (two planned years for general funded units and four planned years for self-supported units). The focus is on the budget for the upcoming fiscal year, as this is the only budget that is approved by the Board of Trustees in June of each year. CAMPUS UNITS DEVELOP BUDGET PLANS Duration: February to April The Budget development process at the units level it starts in February of each fiscal year, after the UBC meeting where CFO presented with the campus of the preliminary planning and budget calendar. Each cabinet will be responsible on developing their workforce plans that will be translated into the multi-year planned position budgeting files. For FY the workforce plans will be mapped out to the organizational structure (org-chart) of the units accompanied with position numbers, FTE, job classification, base budgeted salary for 12 months. Cabinet budget process is decentralized, each cabinet has the discretion to reallocate to colleges/divisions based on their own internal methodologies no greater that unit base allocation. The campus and self-support units develop multiyear plans that include an annual budget plan and projected plans for future fiscal years. The individual unit budgets are aggregated later by the BAO office in order to produce the overall university budget that is taken to the President for approval. For the most part, the unit business managers are responsible for the unit's budget. The level of staff involvement varies across the cabinets; however, the deans and department heads provide significant input and guidance to their respective unit budget process. The University Wide cabinet budget process is managed centrally and includes the following line items: benefits, utilities, risk (this expense category includes the worker s compensation pool, property and auto insurance, industrial and non-industrial disability leave and Athletic Injury Medical Expense (AIME) insurance), financial aid, and any strategic financial initiatives that fall in the capital strategic planning, deferred maintenance program, and academic program development. The budget and planning process itself varies to some extent among the units: Associated Students, UCorp and Foundation funded by their own resources; making their budget-setting approach different from the budgeting process conferred above. BEGIN BUDGET MEETINGS WITH CABINETS Duration: April to mid-june COMPLETE BUDGET MEETINGS WITH PRESIDENT/CFO/CABINET Duration: End of June 5 P age

7 Once THE BUDGET WORKBOOKS are complete, the BAO office conducts a thorough analysis of all of the budget mechanisms. This analysis is assisted by supporting documents provided by the respective units. As necessary, the BAO staff work with the business managers of the units to resolve any matters. The operating budgets for each unit are reviewed in depth to ensure that the allocation amounts agree. The other elements of the budget are analyzed to determine if the unit appropriately applied the assumptions that were provided earlier in the process, and to explain any variances. Once the President has reviewed and approved the annual budget, it is then finalized. PLANNING AND BUDGETING AT THE CABINET-LEVEL Planning Workforce Levels Incorporate the cabinet s all funds sources Review the cabinet s carry forward balances and use them strategically One-time Projects List, the campus central reserves for one-time projects is very limited. If there are urgent or critical projects that need to be completed, you may list those for consideration The campus requirements as well as safety and health serve as general guidelines for planning and allocating the resources and for identifying baseline budget. FINANCIAL PROJECTIONS THE BUDGET WORKBOOKS will provide a high level summary of a planning unit s revenues and expenditures. The financial projections will facilitate the following: Unit budget submission prior to the meeting with the President/CFO/Cabinet Review and discussion with President/CFO/Cabinet University consolidation of the financial results-consolidated budget of operations Review of the feasibility of our global assumptions to understand trades off and facilitate decisions about how to get to a balanced budget. 6 P age

8 REPORTING REQUIREMENTS THE BUDGET WORKBOOKS (starting this FY Operating Fund and Self-Supported Operations) is comprised of four parts: Multi Year Plan Report - The Multi Year Plan Report template format provides Revenue (and Expenses by account, by fund grouping (see Fund Chart Index in the Appendix) Cabinet input projected year end expenditure (Spring Review) and planning budget for the next 3 fiscal year general funds (one budget and 2 planning) and 5 (one budget and 4 planning) fiscal year auxiliary units.. Storyline - The purpose of the storyline is to provide a description of your operations and significant financial information. What gains were made on student success initiatives due to funding received in the prior year? Information to demonstrate how the funding was used and the outcomes. Data Input Tab Detailed excel file of positions, revenues, and operating expenses, by department, fund and account level for the current year budget submission Positions: The Data Input Tab currently includes position data provided to the department level by funds from the current year budget submission. Cabinets will need to input projected year end (Spring Review) and planning budget for the next 3 fiscal year general funds (one budget and 2 planning) and 5 (one budget and 4 planning) fiscal year auxiliary units Revenue: Provide in the Data Input tab the detailed current year budget submission for any revenue accounts, by account, by fund. It is optional if you wish to provide this level of detail for the spring review and future planned years. Operating Expenses. Provide in the Data Input tab the detailed current year budget submission for any revenue accounts, by account, by fund. It is optional if you wish to provide this level of detail for the spring review and future planned years. Certification of Financial Action (for the Spring Review) Each Cabinet is required to provide a memorandum (certification of financial actions) commenting on the outcome of their financial review process and include comments on the financial conditions of each Division. Material variances must be explained and identified in the written report. Material variances are defined as Revenues: under by 10%, Expenses: over-spending by 10% in General Fund, IDC, Cost Recovery, Self-Support and Trust Funds, and 50% Misc. General Fund (NR401), when comparing fiscal year Revised Projection to fiscal year Revised Budget. Additional items to note within the 7 P age

9 report include service level changes, growth issues, unmet needs, trend issues, new programs, reserves or other factors that currently have or are expected to have an impact on the budget. 8 P age

10 TIMELINE FOR COMPLETION The overall schedule for the planning units will be as follows: Month TASK DATE RESPONSIBILITY DELIVERABLES Feb-March Continually during the budget process February-end of April May-June June June-August Publish Planning, Assumptions, Tools, Templates After February accounting period close BAO Budget Manual Budget Assumptions Prepare THE BUDGET WORKBOOKS Training and sessions-walk-in Up to June BAO These sessions will provide training on the budget process as well clarifications on specific questions that campus units will address. Planning Units Budget Development Meeting with the President and CFO Base Budget Reviewed and upload by BAO Campus budget consolidation and submission to CO 5-6 weeks Planning Units develop the budget and forecast By June 15 th,2019 Planning Units Business Managers and VPs meet with CFO and President THE BUDGET WORKBOOK for GF units (CY budget plan plus 2 yrs. Forecasted plan ) THE BUDGET WORKBOOK for Self-Supported Operations (CY budget plan and 4yrs forecasted plan) VPs will present their budget plan including any new initiative requests for President s review and approval 2-3 weeks BAO Reviews submitted materials; follows-up with questions to Cabinets; reconciles the line items and upload the base budget by July 1,2019 August 15,2019 BAO FIRMS Budget submission to Chancellor s office Original Consolidated Budget upload August Revised Budget approval and upload Accounting August month close CFO VP s President BAO Allocations memo will be distributed to the campus cabinets that includes one-time allocations ( PY commitments, Carry forward balances) 9 P age

11 FY PRELIMINARY BUDGET PLANNING ASSUMPTIONS In building the budget for FY , the following important guidelines will aid in the planning process. Each administrative and academic unit should incorporate the applicable planning assumptions and guidelines into their budget planning to ensure consistency across the University. Please Note: These are planning assumptions that may be adjusted as budget discussions continue and recommendations are made. 10 P age

12 ENROLLMENT- PLANNING PARAMETERS University Enrollment/FTEs Planned Target DESCRIPTION AMOUNTS (IF KNOWN) FY19-20 CO Target = 24,219 FTEs OTHER INFORMATION/RESOURCES Coded Memo CSU the enrollment FTE target for FY19-20 is 0.5% FTE growth based on the preliminary budget release from Chancellor Office (CO) Governor s proposed January Budget Summary and details can be found under the Department of Finance website. University planned headcount - SU19: 6,480 - FA19: 29,738 - SP20: 27,719 University planned target = 24,219 FTEs Historically, waivers were between 5% - 7%. The estimate is based on individual campus circumstances and other factors, and involve many variables and attempt to account for uncertainties. Actual performance results may differ from the projections in this planning assumption. Governor s proposed January Budget Summary Tuition Fee Increase There is no public announcement about the system wide tuition fee increase from the CSU Board of Trustees for the academic year. The tuition fee rate is assumed to be the same rate as academic year as of now. Fee Information 11 P age

13 REVENUE PLANNING PARAMETERS DESCRIPTION AMOUNTS (IF KNOWN) OTHER INFORMATION/RESOURCES Summer 2019 State University Fee (SUF) No Change Summer 2018 Actual SUF collected = $13M Summer 2019 Projection = $12.7M Fee Information Fall 2019 State University Fee (SUF) No Change Fall 2018 Actual SUF collected = $80.1M Fall 2019 Projection = $80.2M Fee Information Spring 2020 State University Fee (SUF) No Change Spring 2019 Actual SUF collected = $74.6M Spring 2020 Projection = $74.4M Fee Information Non-resident Tuition Fee No Change Actual collected = $16.7M as of Projection = $16.3M Fee Information Graduate Business Professional Program Fee No Change Actual collected = $995K as of Projection = $800K Fee Information 12 P age

14 Higher Education Price Index (HEPI) and mandatory local fee rate projections Student Service Fee (Local Fees) The HEPI shows that inflation for U.S. colleges and universities rose 2.8 percent in fiscal year It declined compared to prior FY s 3.3 rate but higher than the average of 2.4 percent for the preceding five fiscal years. According to the Budget: California s Fiscal Outlook report, the forecast expects continued growth of the U.S. economy, although with some slowing pace in the coming years. The growth will be tempered by slower job growth and modest weakness in housing sector. The State displays the economic outlook under two different scenarios. The first scenario assumes continuing economic growth and the second assumes a moderate recession beginning in the 3rd quarter of calendar year If the economy continues to grow, the GF surplus would average around $4.5 billion each year, declining over time. If the economy experiences a moderate recession, the state has sufficient reserves to cover the deficits until fiscal year. The average inflation for U.S. colleges and universities for the last five fiscal year (FY2014 FY2018) = 2.6% Recreation & Wellness Center : : will enhance student life s $75/student in Summer $75/student in Summer social environment through $163/student in Fall $163/student in Fall programs provided through the $163/student in Spring $163/student in Spring newly constructed Mashouf Wellness Center and current Campus Recreation Department. The Budget: California Outlook Higher-Education-Price-Index Fee Information Mashouf Wellness Center Student Body Center $38/student in Summer $82/student in Fall $82/student in Spring $38/student in Summer $82/student in Fall $82/student in Spring Fee Information 13 P age

15 Student Body Association $25/student in Summer $54/student in Fall $54/student in Spring Student Health Services $73/student in Summer $157/student in Fall $157student in Spring Instructionally Related Activities (IRA General) Instructionally Related Activities (IRA Athletics) $5/student in Summer $50/student in Fall $50/student in Spring $4/student in Summer $68/student in Fall $68/student in Spring Health Facilities $0/student in Summer $3/student in Fall $3/student Spring Campus Service Card $2/student in Summer $2/student in Fall $2/student Spring Gator Pass $0/student in Summer $180/student in Fall $180/student Spring $25/student in Summer $54/student in Fall $54/student in Spring $73/student in Summer $157/student in Fall $157/student in Spring $5/student in Summer $50/student in Fall $50/student in Spring $4/student in Summer $68/student in Fall $68/student in Spring $0/student in Summer $3/student in Fall $3/student Spring $2/student Summer $2/student in Fall $2/student in Spring $0/student in Summer $180/student in Fall $180/student in Spring Fee Information Fee Information Fee Information Fee Information Fee Information Fee Information Fee Information 14 P age

16 Student Involvement and Representation (SIRF) Optional $0/student in Summer $2/student in Fall $2/student in Spring $0/student in Summer $2/student in Fall $2/student in Spring Fee Information Housing, Dining & Conference Services (HDCS) Student Housing, Dining & Conference services Student Housing Program: Room rate: 5% room rate increase compared to last year s rates. Activity fee: is approved for an increases of $10 to $40 for FY19/20. This activity fee was last increase 10 years ago, and the fee supports Residential Life programs. Security deposits: increase from $200 to $300 FY Fee Schedule & Calendar Spring 2019 Fee Schedule Please contact Housing, Dinning& Conference Services for more information State Support The allocation will be used to support mandatory cost. Dining Services Program: Meal Plans: approved increase at a rate of $ 3% across the five meal plan options that will be offered to the students during FY FY the University received state support of $180M FY19-20 the University will receive state support of $195M (Preliminary Budget Allocations) Coded Memo 15 P age

17 EXPENDITURES PLANNING PARAMETERS DESCRIPTION AMOUNTS (IF KNOWN) OTHER INFORMATION/RESOURCES Employee Benefits Based on benefit rates and varies by member category Approved The retirement rates range from 20.4% to % of salary Benefit Rates Approved Pending. The rate may be available in April/May 2019 based on last year issuance Benefit Rates provided by the CalPERS Actuarial Office, CalPERS Finance and Administration Committee Health Care Premium increases by 1.3%. Health Care Premium Increase OASDI = 6.20% Medicare = 1.45% Social Security Program Rates & Limits Employer contribution rates for health and dental tend to increase each year effective in the month of December. So, units should project 7 months at the new level. Projected Future Employer Contribution Rates (page 7) 16 P age

18 General Salary Increase (GSI) / Proactive Management Initiated IRPs Annual salary increases for staff employees/faculty and proactive management initiated In-Range Progressions (IRPs) Please refer to the current bargaining agreements from CSU Labor and Employee Relations for more information. Contact Human Resources for further information (ask for Talent Management & Compensation Solutions) Salary Schedule Tentative Agreements Current Bargaining Agreements Minimum Wage Increases According to the City of San Francisco s minimum wage increases phased in over the next few years. (Academic Senate has agreed to support the minimum wage in the city of San Francisco, rather than the California minimum wage for all student employees at SF State, regardless of the funding source) On July 1, 2018, the San Francisco minimum wage rate will increase to $15.00 per hour. On July 1, 2019 and each year thereafter, the minimum wage rate will be adjusted based on the annual increase in the Consumer Price Index. In January 2019, the California minimum wage will increase from $11/hour to $12/Hour. The California minimum wage increases in increments of $1 in each subsequent year until it reaches $15/hour in January 2022 City of San Francisco Minimum- Wage-Ordinance California Minimum Wage Rate In Supporting of Honoring City of San Francisco Minimum Wage CSU Salary Schedule FY2018/19 Utilities Based on campus commodity providers Utilities Cost Forecast: Water 10% increase in projected cost Proposed FYE Water & Sewer Rates from the San Francisco Public Utilities Commission (SFPUC) Sewage 10% increase in projected cost Recology 15% increase in cost (subject to revision) Please contact the Office of Sustainability for additional request for information. Gas 6% increase in projected cost Electricity 6% increase in projected cost 17 P age

19 Risk Pool California State University Risk Management Authority (CSURMA) was formed by CSU and provides several risk management programs such as Pooled Liability Programs, Pooled Worker s Compensation Program, IDL/NDI/UI Program, Property Program, Foreign Travel, Study Abroad, Special Event and other insurance programs. FY FY Liability 0.30% Workers Comp 1.18% 1.10% IDL / NDI / UI 0.87% 0.49% Property TIV = 0.05 AIME 100% to Athletics Automobile Liability $201.27/vehicle Contact Enterprise Risk Management for more information FY 2019/20 CSURMA Premium Reference: ICSUAM Section Centrally Paid Cost Centrally Paid Cost (CO) The largest cost passed down to the campuses is health and dental benefits for retired annuitants related to special funds. This represents a 9% decrease in cost over prior year, or $18 million. Coded Memo: FS Centrally Paid Indirect Cost Cost Allocation Campus Allocation Plan (CAP) under campus review. Using FY CAP with the adjustment to include FY18/19 GSI Cost Allocation 18 P age

20 INSTRUCTIONS & GUIDELINES FOR THE BUDGET WORKBOOKS GUIDELINES THE BUDGET WORKBOOKS is a detailed compilation of the data input to the units in an effort to provide an easy preparation of the budget. The data includes revenue/expenditures grouping as well as by funding source, department, and natural classification of the expenditures. The itemized position listing is a position-by-position detail of salary dollars, employee, job code, full time equivalent (FTE), and appointment type (REG, TEMP). NEW FUNDING New funding may be either ongoing or one-time (for one to three years only). New base funding is added to current level of operations funding when there is an existing budget. New funding is typically the result of campus budget allocations process that are determined by the President; however, new funding may be the result of a reorganization process from a cabinet internal resource reallocations down to its division and/or its departments or between the cabinets. NEW BASE FUNDING New base funding awarded through the annual campus budget process will be added to the cabinet s base budget by the BAO Office, once executive management decisions are finalized and approved by the President. The BAO Office will contact the recipients of any new base funding to identify Chartfields for allocation. New base funding can be for Salary & Wages (S&W) and/or for Operating Expenditures & Equipment (OE&E). If any funding is for new S&W, benefits funds must also be determined and provided to the University Benefits Pool (based on current benefit rates). NEW ONE-TIME FUNDING The process of requesting new funding is associated with Strategic Initiative Funding Request Process (TBD) 1. When one-time funding is allocated through the annual campus budget process, it is provided for a designated/specific use. One-time budget augmentations may be allocated by the Budget Office; they can also be allocated by cabinets Vice Presidents or from another campus department. New one-time funding can be for Salary & Wages (S&W) and/or for Operating 1 The process is still under review at the President s cabinet 19 P age

21 Expenditures & Equipment (OE&E). If any funding is to be placed in S&W, a portion of the new funding must be identified for staff benefits. PERSONNEL BUDGETING Personnel budgeting includes changes to existing positions, budgeting for planned new positions, or re-allocating funds released by eliminated positions. Begin identifying adjustments that need to be made by utilizing the itemized position listing, which is sent to cabinets each year by the BAO Office. The itemized position listing is a position-by-position detail of salary dollars, employee, job code, full time equivalent (FTE),union code incorporated in THE BUDGET WORKBOOKS. All permanent positions are to be budgeted for an entire fiscal year and be in alignment with unit staffing plans. The full twelve months of funding for each position must be budgeted even for a position that is new or vacant and is not expected to be filled until later in the fiscal year. Each budgeted position should not exceed 1.00 FTE (full time employee). If some of the salary funds will not be used, they may be used on a one-time basis to a non-salary budget line. GENERAL SALARY INCREASES FUNDING FOR CSU OPERATING FUND General Salary Increases (GSI) are in general funded by the campus. Funding can be effective anytime of the fiscal year. Any CSU Operating Fund bargained increase with an effective date of July 1 st would be funded for a full 12 months of that current fiscal year. If the effective date is January 1 st, departments will receive funding for six months in the effective fiscal year and a full 12 months in the following fiscal year. Any compensation increases provided outside of the bargaining unit process typically reflect decisions made by campus administrators and are not funded by the university. Some examples would be faculty and staff promotions, in-classification-range progressions, reclassifications, and reassignments. Updated information pertaining to specific bargaining unit agreements can be accessed via each union s website and/or from the CO HR website CSU Bargaining-agreements. 20 P age

22 FOR SELF-SUPPORTS (TRUST FUNDS) All salary increases must be funded within existing resources. When developing the budget, include any anticipated compensation increases to be awarded during the fiscal year STUDENT WAGES Wages paid to undergraduate students for hourly positions should be budgeted. For hourly wages information please contact human resources. Student assistants In planning for hiring additional position please use the Budget Planning Assumption for the minimum wage. This includes the Work Study program. Students may receive a Federal work study award based on their financial needs through a pre-established FAFSA (Free Application for Federal Student Aid) application process for additional information, visit the financial aid website. Since the work study program is under the Student Affairs & Enrollment Management Cabinet s fiscal management. It is the responsibility of the departments and agencies to manage their student work study award and their On Campus Federal Work Study budget each fiscal year. Departments must fund all overruns. Graduate student wages includes stipends, hourly wages, and fellowships paid to graduate students. OTHER COMPENSATION Any additional allowances or payroll components paid to employees of university. This might include housing allowances, cell phone allowances, and auto allowances. BENEFITS The university maintains a centralized staff benefits pool except account Employee Moving and Relocation Expense which will be covered at the unit level. Once a month, after actual salary and benefit expenses are posted to the ledger, the Budget Office runs a process that allocates to each Department ID a budget equal to their benefits expense for the month. This process is completed prior to month-end close. When changes are made to salary budgets funded with the CSU Operating Fund, adjustments are also made to the University Benefits Pool. The actions that cause adjustments to the University Benefits Pool are described in details below. Adjustments are based on the benefit rates shown in The Budget Planning Assumption. Self-support operations (trust funds) other than the CSU Operating Fund, departments must budget for benefit costs. There is no University Benefit Pool for trust funds, NR201, NR301, NR401, SUXXX and SG101. When developing and/or reviewing trust fund budgets, there are 21 P age

23 two ways of estimating the benefit rate; one way is using the current year actual financial data and any anticipated personnel changes, and the other way is separately budgeting each individual benefit account. Certain categories of Salary and Wages (i.e., Temporary Help, Student Assistants, Graduate Assistants, Teaching Associates, and Overtime) have minimal or no staff benefit costs. For those who receive Shift Differential stipends, the benefit rate consists of OASDI, Medicare, and Retirement, exception to Unit 8 (Police) who does not pay into OASDI. The employer s benefit cost is determined by bargaining unit. CALPERS Retirement rate changes are generally effective on July 1 st. Others changes, such as changes in health and dental premiums, occur on January 1 st (calendar year). For any changes that take place on January 1 st, campuses will see the adjustment in December, so seven (7) months should be calculate based on the newly rate. DEBT SERVICE Planning Units with Debt Service obligations are expected to budget according to the existing project amortization schedules. For additional information contact the BAO office. INTERNAL TRANSFERS Funding Transfers Within Units Please budget using historical trends and any known changes. Funding transfer within units represents the transfer or receipt of funding within internal departments of planning unit (cabinet). The total of transfers must net to zero across the planning unit (cabinet). Funding Transfers Across Units Across units represent the transfer or receipt of funding across the cabinets. Planning units (cabinet) must agree upon terms and amount of funding transfers before budgeting to ensure the transfer is properly reflected in both unit s budgets. SUPPLIES & SERVICES Represents various materials used in the daily business operations of the departments, as well as payments to vendors for services that support the operations. This includes office supplies, computer supplies, advertising services, and many more. TRAVEL AND TRAINING Note that all travel and training are to be budgeted using specific account codes. In support of the planning department training and travel you can use historical information by running reports in Finance Data Warehouse (FDW). PROFESSIONAL SERVICES Professional services represents expenses and fees for specialized services to the university. This includes consulting services, accounting services, payments to online education service providers, legal expenditures, and many more. 22 P age

24 CAPITAL EQUIPMENT Non-Capital Equipment Non-Capital Equipment is equipment that does not meet the capital equipment requirement as defined as tangible that meets the following criteria: Equipment threshold valued as $3,000 but less than $5,000 including tax, installation and shipping cost per unit. Must have a minimum useful life of one year or greater Is used to conduct university business Instructional Equipment: Instructional Equipment is purchased for academic instruction purposes. Instructional equipment value of at least $500 but less than $5,000 including tax, installation and shipping cost per unit. Must have a minimum useful life of one year or greater Not permanently attached or incorporated in CSU building and grounds. ADMINISTRATIVE INDIRECT COST ALLOCATION Chancellor s Office/State of California direct and indirect costs. The Chancellor s Office sends an annual Financial Memo summarizing direct and indirect costs for the following fiscal year. Contact the BAO Office for more detail, or if you need copy of the memo. SFSU cost allocation plan is included in the budget planning assumptions. SFSU campus is required by the Chancellor s Office via Executive Order 1000 to recover any costs incurred by the CSU Operating Fund for services, products, and facilities provided to other CSU Funds and to Auxiliary Organizations. Cost allocations are recovered quarterly to non-csu Operating Fund entities in September, December, March and June. BUDGETING REVENUE Revenue is usually broken down into its drivers and components. It s possible to forecast revenue on a year-over-year basis, but usually, more detail is required by breaking revenue down into its underlying components. Revenue drivers typically include dimensions (headcount, units, customers, etc.) and fee. For self-supported units the ongoing revenues can be considered base revenues. Revenues should be outlined by the account in which the revenues will be posted. When the self-supported operation revenues are estimated to exceed or fall short of estimated expenditures for the fiscal year, the surplus/deficit should be posted to account Carry forward: Other Expenses. USE OF LAG DOLLARS (SALARY SAVINGS) Lag salary dollars are the portion of a specific, encumbered salary that is not spent for that salary during a fiscal year. While lag dollars are the result of personnel changes that occur each 23 P age

25 year, they are extremely variable and cannot be counted on as a dependable, ongoing source of funds. There are two types of lag salary dollars that may be realized by a department during a given fiscal year; dollars that accumulate between the times an employee leaves the organization and the position is refilled, and dollars that are realized when a position is filled at the minimum starting range following the separation of an employee making more than the minimum starting range. Typical uses of lag salary dollars: Fund all salaries deficit salary obligations in general Fund the vacation pay off when an employee leaves the college Fund reclassifications and/or other approved changes in employees salaries Fund the difference between the advertised starting salary and actual starting salary Funds non-recurring or unforeseen staffing needs during a fiscal year The cabinet VPs are responsible and fiscally accountable for the use of lag dollars. CARRY FORWARD FUND BALANCE At year end of each fiscal year, the cabinets retain any unspent portion of its allocation in the form of fund balance or more popular carryforward balance. The fund balances will be allocated by the budget office at the beginning of each fiscal year in the CFS Revised Budget column. Typically carryforward balances are the result of the following: net revenue, plus prior year balances and often the result of salary or other savings. They occur in most fund sources. DO NOT USE THE CARRYFORWARD BALANCES TO FUND PERMANENT COMMITMENTS (expenditures that are expected to recur on an annual basis). Typical use of carryforward balances are expenditures with an effective end date: Fund emergency needs Fund one-time purchases Fund start-up costs for a new program The university has a carry forward limit on General Operating Funds that has been instituted by the Chancellor s Office. See policy on the link: The cabinet identify how to expend carry forward funds. List both the short-term and long-term expenditure plans and describe the relationship between cabinet deficits and carry forward funds with regard to strategies for the future while striving to achieve cabinet strategic objectives. 24 P age

26 THE BUDGET WORKBOOKS (DATA INPUT TAB) INSTRUCTIONS Self-supported operations will have to submit a balanced budget within their planned resources. The data source is from the BUDGET WORKBOOKS FY Populate all columns unless otherwise noted. BUDGETING FOR REVENUES Campus units should provide their account-level budget for revenues in THE BUDGET WORKBOOKS Data Input tab. Refer to Appendix C: Required Levels of Budgeting for revenues, for the accounts that are expected to be populated. In the Data Input tab input your Cabinet, Division, Account, Fund, Dept ID, Final Budget, 1 st Year Plan Budget, and 2 nd Year Plan Budget in Columns A, B, C, D, E, U, W, & Y, respectively. 25 P age

27 Data Warehouse Instruction Should you need guidance for a starting point on budgeting your revenues, below is the Finance Data Warehouse (FDW) instruction that will give you your unit historical trends. Using the advanced filters, enter a department tree to get report results by division. REPORT FILTERS FINANCIAL SUMMARY BY YEAR Business Unit SFCMP Fiscal Year Between: 2 Years Prior Current Year Period From: 1 to 12 (Note: Current year information will only include YTD data) Account Type 50 Revenues Account Category All except 506 Fund Refer to the Appendix Fund Index NOT Account 570xxx Dept Tree DEPART_ROLLUP SUGGESTED COLUMN SELECTORS Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 REPORT VIEW SELECTORS Select Report View Dept Level 3 Fdescr Dept Level 4 Fdescr Fund Fdescr Dept Fdescr Acct Fdescr Hide Summary by Year (Actuals) 26 P age

28 Sample: FDW Financial Summary by Year 27 P age

29 28 P age

30 SALARIES DATA INPUT BUDGETING FOR POSITIONS Campus units will use the position files for the purposes of spring review as well as planning for the upcoming fiscal years. Columns have been created for budget for FY19-20, plan for and REGULAR (REG) POSITIONS 2 should be updated to include 12 months of salary. In the Final Budget column, the following computation should be included: Final Budget = Budget Comp Rate X FTE X 12 3 POOL POSITIONS 4 should include the budget based on your unit s assumption by using historical trends, or any formula that is applicable for your planning purposes. Budget as a new line item by account and populate all columns except columns J & K. OTHER SALARY CATEGORIES Temporary Help, Overtime, Shift Differential, and Post/Cert/Spec should be budgeted as new line item by account. Populate columns A, B, C, D, E, U, W, & Y. Please indicate any anticipated increases (e.g., IRPs, promotions,) as a separate line item rather than incorporating into each individual s comp rate. Populate columns A, B, C, D, and E, U, and Z (indicate type of increase) 2 Regular Positions Positions have a one-to-one relationship with employees. Only one person can be appointed at a time to the position. 3 Keep in mind there are scenarios where using the equation will not be appropriate. For example if the position is a.5 FTE or if an employee holds two different positions with two different class codes. Use the equation where appropriate. 4 Pool Positions Positions have a one-to-many relationship with employees. Multiple people can be appointed to the same position at the same time. For example: Lecturers, Student Assistants, Graduate Assistants, Teacher Assistants, and other hourly employees. 29 P age

31 NEW POSITION A position must have a position number, do not include a NEW POSITION without a position number. Please insert a row and fill out all the information for each column headers and include notes in the Comment if necessary. On the LCD Name column, input NEW. MODIFYING AN EXISTING POSITION To adjust an existing FILLED POSITION (compensation, job classification, appointment, FTE), please copy the same position and insert to the next row. Zero the FTE and comp rate on the original row. You ll still need to submit an E-TRAC to reclassify the employee if you haven t already done so in HRMS. The budget office does not change the employee s status. 30 P age

32 INCLUDING ALL VACANT POSITIONS You will need to include and/or revise units vacant positions in your BUDGET WORKBOOKS within your organization and update the LCD Name column to VACANT. Any vacant positions that is not budgeted will be deactivated. To adjust a VACANT POSITION (compensation, job classification, appointment, FTE), please perform similar edits to modifying an existing filled position. A Change Vacant Position E-TRAC must be initiated and processed in HRMS to change the position. INACTIVATING VACANT (REG or TEMP) POSITION For any existing VACANT POSITION that you plan to inactivate zero out FTE and Comp Rate. In the Comment column, please state INACTIVATE. Please note that once the position is inactivated, it cannot be reactivated. In the case of which a position is temporary filled and with the intent to inactivate once the employee leaves, indicate the termination date in the Comment column. 31 P age

33 32 P age

34 Position and Operating Expense Data Input Tab Column Definitions: Column A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Description Dept Level 3 Fdescr = Cabinet Name Dept Level 4 Fdescr = Division Name Account Fdescr = Account Description Fund Fdescr = Fund Description Dept Fdescr = Department Description Job Function Code = Job Function Code Empl Class Fdescr = Employee Class Description LCD Union Cd Fdescr = LCD Union Code Description LCD Position Number = LCD Position Number LCD Name = LCD Name LCD Employee ID = LCD Employee ID LCD Job Code Fdescr = LCD Job Code Description Fall Review FTE = Fall Review submitted FTE Fall Review LCD Comprate = Fall Review submitted LCD Comp Rate Fall Estimated Hire Date = Fall Submitted Estimated Hire Data Spring Review FTE Spring Review LCD Comprate Spring Review Estimated Hire Date Budget FTE Budget Comp Rate= Monthly Comp Rate Final Budget = column M (FTE)*Column P (Budget Comp Rate)*12 months for one FY, Lump Sum Amount for Operating Expense Plan FTE FY plan 1 st Year Plan Plan FTE FY plan 2 nd Year Plan Comment 33 P age

35 COST RECOVERY (ALSO KNOWN AS RECIPROCAL ACTIVITIES OR EXCHANGE TRANSACTIONS) The term cost recovery largely replaced the old term reimbursed activities. Cost recovery can be recouped by CSU operating fund 485 that performs services or provides goods for another CSU fund. SHARED SERVICES: Often times campus contract with another campus or the CO to provide services. DIRECT REIMBURSEMENT (DIRECT ALLOCATION OF COSTS) A direct reimbursement is when the provider acts as a conduit or pass-through, and abates the reimbursement against the original expense. EXTENDED EDUCATION Extended Education program cost recovery activities for special sessions and Open University will follow the system wide cost recovery guidelines. Cost recovery revenue CSU fund 485 will be recorded using object code ; cost recovery expense will be recorded in CSU fund 441 Extended Education using object code services from Other Funds, or , if interagency. Campus units should provide their account-level budget for cost recovery in THE BUDGET WORKBOOKS Data Input tab. Refer to Appendix C: Required Levels of Budgeting for Revenues and Expenses, for the accounts that are expected to be populated. In the Data Input tab input your Cabinet, Division, Account, Fund, Dept ID, Final Budget, 1 st Year Plan Budget, and 2 nd Year Plan Budget in Columns A, B, C, D, E, U, W, & Y, respectively. 34 P age

36 REIMBURSEMENT RELEASE TIME (RRT) (for operating general fund units) At times, a faculty member is awarded a grant or other type of agreement that requires a certain level of effort that may be met by being released from teaching units to perform other work. This can be either reimbursed time charged to a grant or agreement. When this happens, a replacement is hired to fill the resulting vacancy. For a complete listing of definition in CSU LEGAL ACCOUNTING AND REPORTING MANUAL CHAPTER 23 COST RECOVERY and/or budget office website NEW GUIDELINES FOR CSU FUNDS 485, 491 AND 496. BUDGETING FOR OPERATING EXPENDITURES All units (general funded operations and self-supported operations) should provide their account-level budget for operating expenditures in THE BUDGET WORKBOOKS Data Input tab. Refer to Appendix B: Required Levels of Budgeting for Expenses, for the accounts that are expected to be populated. 35 P age

37 In the Data Input tab input your Cabinet, Division, Account, Fund, Dept ID, and Final Budget in Columns A, B, C, D, E, U, W, & Y, respectively. 36 P age

38 Data Warehouse Instruction Should you need guidance for a starting point on budgeting your operating expenditures, below is the Finance Data Warehouse (FDW) instruction that will give you your unit historical trends. Using the advanced filters, enter a department tree to get report results by division. REPORT FILTERS FINANCIAL SUMMARY BY YEAR Business Unit SFCMP Fiscal Year Between: 2 Years Prior Current Year Period From: 1 to 12 (Note: Current year information will only include YTD data) Account Type 60 Expenditures Account Category All except 601, 602, 603, 607, 609 Fund Refer to the Appendix Fund Index NOT Account , Dept Tree DEPART_ROLLUP SUGGESTED COLUMN SELECTORS Column 1 Dept Level 3 Fdescr Column 2 Dept Level 4 Fdescr Column 3 Fund Fdescr Column 4 Dept Fdescr Column 5 Acct Fdescr Column 6 Hide REPORT VIEW SELECTORS Select Report View Summary by Year (Actuals) 37 P age

39 Sample: FDW Financial Summary by Year 38 P age

40 39 P age

41 CAMPUS MULTI YEAR PLANS FOR OPERATIONS Campus multiyear plans are a fiscal management and planning tool requested of all campus. Units are asked to submit an updated business plan annually that will highlight the financial position of the fund(s)/operation. The plan should include in the budget and two years for general fund operating units and four years of financial projections to encourage long-range financial planning in alignment with university consolidated operating fund resource planning. Units that are required to submit business plan: Office of the President Cabinet Operating Fund NR401 One time Programs and Initiatives Athletics Division (all funds, including scholarships) Academic Affairs Cabinet Operating Fund College of Extended Learning (CEL) Indirect Cost Recovery (IDC) NR401 One time Programs and Initiatives Lottery MBA programs (including EMBA) Student Affairs & Enrollment Management Cabinet Operating Fund Instructional Related Activities (General IRA) Associated Students Campus Recreation/Mashouf Wellness Center Children s Campus Parking Services Residential Life Student Health Center NR401 One time Programs and Initiatives University Police Department (UPD)* Administration & Finance Cabinet Operating Fund Accounting services fees* Campus Service Fee Facilities Cost Recovery Plan* Gator Pass Information Technology Services* Mail Services* Other Trust Funds Reprographic/Copier Program & Distribution Services* Telephone Recharge* It is applicable for FY19-20 Budget Process (NR301) 40 P age

42 NR401 One time Programs and Initiatives Dining, Housing & Conference Services University Advancement Operating Fund NR401 One time Programs and Initiatives Foundation University Enterprises Cabinet Operating Fund NR401 One time Programs and Initiatives Capital Project Management* Downtown Campus UCorp The Budget Manual includes most of the guidelines that are consistent with the guidelines for campus multiyear plans, except that self-supported operations are required to cover all the costs related to salaries and benefits, including compensation increases and operate within their means. In addition to providing fiscal year budget information, business plans should also include references to operational and/or organizational changes and adjustments. Please see the Budget Manual Assumptions chapter for more details on projected changes for student enrollment data, fixed and indirect costs. Also included in the manual is a sample narrative that highlights significant information and changes. The Campus Multiyear Plan Template for selfsupported operations is also included in the Budget Manual for displaying financial information. Budgets for self-supported operations are uploaded in CFS and any adjustments from the original adopted budget plan will be processed in the Current Budget. 41 P age