BUSINESS DIRECTORS FORUM FISCAL 2014 KICKOFF ITEMS

Transcription

1 BUSINESS DIRECTORS FORUM FISCAL 2014 KICKOFF ITEMS SEPTEMBER 11, 2013 Office of the Controller Office of Grants & Contracts Accounting Office of Institute Budget Planning & Admin

2 1. FY13 YEAR-END WRAP-UP BDF 9/11/2013 2

3 FY 13 Revenue Factors State Funding FY13: o + $6.7M New State Formula Funding o $6.0M Permanent 3% Reduction o $4.0M One-time 2% Reduction <$100M Total 4-year Cuts (35% total state reduction)> Tuition: $19M Above Projections 250 additional non-resident freshmen Indirect Cost Recoveries: $2.2M below budget BDF 9/11/2013 3

4 FY13 Allocations from New Revenue Highlights of New FY13 Allocations: $4.6M health & other fringe increases and faculty promotions $6.5M pay and fringe benefit adjustments for faculty and staff (some carried into FY14) $4.5M new faculty positions & teaching support (some carried into FY14)* *NOTE: P/S funding only moved to units upon new hires BDF 9/11/2013 4

5 FY13 Year-End Wrap-Up (pre-audit) Basic Data: Fiscal 2013 Year-End Balance $21.7M* Balance as % of General Ops Revenue** 3.7% Fiscal 2012 Year-End Balance $18.3M Balance as % of General Ops Revenue** 2.9% NOTES: * Nearly all of balance earmarked for: Capital Projects Unit Carry Forward requests Faculty-related funding not yet allocated to college budgets ** Total revenue total includes plant fund (capital) and excludes sponsored and affiliate organizations revenue BDF 9/11/2013 5

6 FY13 Year-End Wrap-Up (pre-audit) All Resident Instruction units finished year in the black some very close (Great job!) Approximately $9M approved for units per carry forward policy 1.5% of Gen Ops budget for: Faculty start-up Division renovation needs Other FY13 commitments carried into FY14 Year-end capital funding reserved EBB, Marcus (Nano) build-out, Mason Building renovation BDF 9/11/2013 6

7 2. FY14 AND FY15 BUDGET UPDATE AND OUTLOOK BDF 9/11/2013 7

8 Fiscal 2014 Executive Approved Budget Revenue Highlights : + $6.5M net state increase available for allocation + $10.3M tuition increase enrollment & rate $3.6M reduction in other revenue (includes $3.9M reduction in indirect cost recoveries) = $13.2M net revenue increase $2.2M net of Pre-commitments & Possible Reductions* = $11.0M Available for Allocation * Possible spending reductions associated with reduced indirect cost recoveries BDF 9/11/2013 8

9 Fiscal 2014 Approved Budget Spending Highlights : Approval of mandatory requirements & Institute precedents prior to other allocations Additional $3.4M for compression/equity/market salary pool Total $6.4M including FY13 funding (excluding fringes) Tenure/tenure track and research faculty 1.5% Staff and all other positions that are NOT tenure track faculty 2.3% $5.6M new workload funding approved ½ for faculty and teaching support: $2.3M for new faculty $600K for teaching support BDF 9/11/2013 9

10 Future Year Projections State Funding: Modest new formula funding in FY15 max $3.8M Substantial decline in overall system enrollment in FY13 impact on FY15 Tuition expected restriction in FY15 and return to normal (7%+) increases in out years ICR - expected continuation of decline in FY15 and flattening in FY16 and out years Mandatory requirements and previous precedents to continue: Health insurance increases Faculty: strategic hires, promotions, start-up High performance computing Mission critical items including IT network and security, leases, campus safety including environmental health Full EBB implementation BDF 9/11/

11 3. REVIEW OF FISCAL RESPONSIBILITY (CARRY FORWARD) POLICY BDF 9/11/

12 Overview of Policy YEAR-END DEFICITS AND DIVISION CARRY FORWARDS Division Deficits If any division has an unapproved net operating deficit, the division s current fiscal year budget will be reduced on a one-time basis by the year-end deficit amount in the first budget amendment. Division Carry Forwards If a surplus or excess budget is anticipated for year end, and the college or other division would like those funds returned in the next fiscal year, the attached Request to Utilize Year-End Fund Balances should be completed and submitted to the Budget Office by April 15. These will be reviewed by the Executive Director, Budget Planning and Administration, and where appropriate, by executive staff BDF 9/11/

13 4. GT FOUNDATION INSTITUTE SUPPORT BUDGET BDF 9/11/

14 Summary of GTF Institute Support Budget FY14 Budget $22.3M Scholarships/Fellowships $11.0M Faculty/Academic Programs Support $0.5M Strategic/Discretionary Supp. $1.8M (including Miscellaneous Small Needs MSN) Development $2.0M Other Support* $7.0M Principally facilities support including debt service must be funded through GTF BDF 9/11/

15 Summary of GTF Institute Support Budget Goals for Executive Review of FY14 Budget Continue to shift items from GTF to General Operations budget where possible Provide additional funding for scholarships Provide incentive for colleges to spend down their own flexible GTF balances Reevaluate MSN and other line items to harmonize with Institute priorities/ GT Strategic Plan BDF 9/11/

16 Summary of GTF Institute Support Budget Process for FY14 Budget Review to continue for FY15 Zero-based budget process past allocations not automatically assumed Requests for funding included: Intended use of funding Funding alternatives available Consequences of non-funding To Be Determined for FY14: Final Allocation of MSN BDF 9/11/

17 5. MANAGING PRIOR YEAR PURCHASE ORDERS BDF 9/11/

18 Managing Prior Year PO s Tools Used to Manage Prior Year PO s o Sum PY PO Rpt (718) released March 2012, Open Enc Rpt (262) o Discussed Managing PY PO s - BDFs, FY12/FY13 YrEnd Town Hall Mtgs o Periodic Review of PY PO s began in FY12 o Lapsed PO Balance is up from FY12 to FY13 FY2012 Statistics Percentage of Lapsed PO Balance o Top 3 Divisions No. 1-43%, No. 2-14% and No. 3-11% FY2013 Statistics Percentage of Lapsed PO Balance o Top 3 Divisions No. 1-47%, No. 2-11% and No. 3-10% Common Reasons for Lapsing PY PO s o Ledgers Not Reviewed Timely o Encumbrance Estimate too High o PO Paid via PCard in Current Year o PO Not Closed as Requested Next Steps for Reducing Surplus Balances o More/Different Training? o More/Different Communication? o Reminders? BDF 9/11/

19 6. DSS FUND ACCOUNTING POLICY IMPLEMENTATION BDF 9/11/

20 DSS Policy and Accounting Changes New DSS Policy o Released August 2012, Revised April 2013 o Help Svc Centers Better Manage Oper & Plan for Future Commitments Accounting Changes o o o New Non-Lapsing Fund Codes designated for DSS (142xx, 143xx) New Project ID s assigned for DSS New Revenue Accounts established to distinguish DSS charges o DSS Internal, including charges to GT Affiliates (471900) o DSS External to GT and GT Affiliates (452900) o DSS External Sponsored Projects (452800) Guidance for DSS Charges o o o o Split Funded Transactions Cost Share Funds Start Up Funds GTRI Funds o o o o EI2 Funds Auxiliary Services Funds Student Activities Funds GTPE Revenue Transfers BDF 9/11/

21 DSS Carry forward Service Centers All direct expenses and revenues associated with the Campus Service Center must be posted to the Center s DSS Fund o o Amounts are confirmed to most recent G&C Service Center rate study Variances must be justified in writing (may result in rate changes) At least 50% of the revenue source must be from external sources o Revenues from charges to externally-funded sponsored projects qualify as external revenues (use account code ) o Revenues from charges to GTF or GTRC-funded projects are treated as internal revenues (use account code ) BDF 9/11/

22 DSS Carry Forward Recap of Process Policy guidelines for DSS (not yet on GT policies site now posted on Budget Office site*) Individuals should request an eligibility review via the Departmental Sales & Service Carry Forward Notification and Documentation Form Form completed for each project number/fund to be reviewed Review performed to determine compliance with Institute policy Review after all closing adjustments posted; revenue and expenditures reviewed as posted; manual adjustments for calculating carry forward not possible for audit reasons Residual balances calculated as follows: Current Year Revenue + Carry Forward Expenses Encumbrances *Departmental Sales and Service Carry Forward Guidelines BDF 9/11/

23 DSS Carry Forward Challenges in FY13 First year learning curve and policy clarification late in FY Perception that this does not apply to me Extra work for Budget Office including journal entries, budget balancing, and reminders Positive Examples Tennenbaum Institute and MSE BDF 9/11/

24 7. TECHNOLOGY FEE PROCESS BDF 9/11/

25 Technology Fee Process Process and Spending Guidelines Schedule for FY14 and FY15 Year-end Follow-up Report on results from Tech Fee recipients Internal Audit desk audit/review of projects to be performed on GT Office of Internal Audit BDF 9/11/

26 8. GRANTS AND CONTRACTS TOPICS BDF 9/11/

27 Grants and Contracts Accounting FY13 Statistics $490 million total expenditures 13,577 active Projects (including sub-projects) 6,885 exempt employees funded by Sponsored Projects 520,833 transactions posted to sponsored projects BDF 9/11/

28 Grants and Contracts Accounting NSF Audit Program emphasizing Data Analytics Exception Report (over-budget, past-term) Cost Sharing Subrecipient Monitoring Cost Sharing on Subagreements BDF 9/11/

29 Grants and Contracts Accounting G&C Training Classes - Grants & Contracts Overview - Allowable & Unallowable Costs - Electronic Cost Transfers - Grants Management for Campus Administrators - Intro to SPD - SPD Ad Hoc Reporting OSP Training Classes - Proposal Preparation & Submission - Budgeting, Budget Justification and Templates - Public Responsibility & Research Commitments - Post Award Issues - Effort Reporting & Cost Sharing - Subrecipient Monitoring - Service Centers & Best Practices - Federal Circulars & the FAR - Export Control & TCP - Research Administration Buzz (RAB) BDF 9/11/

30 9. TUITION DIFFERENTIALS (TOPIC DEFERRED) BDF 9/11/

31 10. TUITION WAIVER ALLOCATIONS PROCESS BDF 9/11/

32 GRADUATE TUITION WAIVER SETTLEMENTS Overview: Policy developed due to growth of graduate assistant waivers in excess of graduate enrollment growth Process in place to control the number of graduate assistants and the resulting waivers that are NOT funded through sponsored funding. Settlement process in place that either requires for each college: A budget reduction equivalent to graduate resident tuition rate multiplied the overage An additional budget allocation, where the number of waivers is below the base Targets established when policy initiated based on FY05 actual waivers supported by General Operations funding GTA s and GRA s Annual comparison of fall semester actuals to waiver targets Computation of Settlement Allocations to colleges: resident tuition rate X number of Gen Ops funded waivers above or below targets Proposed Revision to Computation Funding under current formula to be gradually reduced and redirected to Provost Office for allocations to colleges to support graduate students BDF 9/11/

33 11. SUMMER SCHOOL INCENTIVE ALLOCATIONS BDF 9/11/

34 Overview Summer School Incentive Process Impetus for Incentive Program: initiated for summer of 2009 by Provost s Office with the Budget Office to help offset budget cuts and avoid further division reductions Purpose: intended to assist colleges to cover the costs of providing summer school classes and to encourage them to expand summer offerings Financial Limitation: tuition revenue above base budget available for distribution to colleges Previous Allocation Process: Computation based on progress above the 2008 summer school base thus benefiting colleges with low summer school offerings prior to 2009 Revised Allocation Process: Computation to be based on teaching hours by college see next slide BDF 9/11/

35 Changes Approved for Summer School Incentives Summer Semester Working Group Recommendations (approved) the SSWG supports changing the funding model to calculate allocations on the basis of the teaching credit hours generated by the colleges, with all colleges receiving an equal per credit hour allocation. For summer 2013 and 2014, two colleges would likely experience reductions in incentive funding under this change in the methodology the Colleges of Business and Architecture. These two colleges will have the opportunity to make special budget requests through the Provost to offset their reductions in incentive funding if the colleges maintain at least the summer 2012 credit hours There would be no additional special budget requests starting in summer Source: August 2013 Report of SSWG Current Status: Credit hours available as of 9/10/13; allocation amounts available for October budget amendment BDF 9/11/

36 12. INDIRECT COST RECOVERY SETTLEMENTS (TOPIC DEFERRED) BDF 9/11/