BUDGETING FOR A FUNDS. Education and General Unrestricted Operating Funds

Transcription

1 BUDGETING FOR A FUNDS Education and General Unrestricted Operating Funds

2 What is a budget? Why have a budget? Planning Controlling spending Identifying funding sources Good budgeting does not set priorities so much as fund priorities that have been identified through planning.

3 Integration of Planning, Budgeting, and Effectiveness Planning Drives Budgeting Planning Drives Implementation & Evaluation of Effectiveness Planning Budgeting Evaluation of Effectiveness Drives Planning Effectiveness

4 State and USC Internal Budget Development Process

5 Overview of State Budget Process

6 Overview of USC s Internal Budget Process

7 The Basics Fiscal year Fund Types Object Codes Terms Budget vs. Actual Academic Unit/Service Unit

8 What are A Funds? Operating/General funds Majority provided from tuition and fees and state appropriations These funds are also called Education and General or E & G funds A funds are unrestricted - dollars may be used to accomplish the goals of the unit within the constraints of State and University policies, procedures & procurement guidelines

9 What part of the USC Operating Budget are the A funds? Total Current Funds - Unrestricted and Restricted General Operating State Appropriations, Tuition & Fees Departmental Student Activity Fees, Sales and Service, Gifts Auxiliary Enterprise services Grants, Contracts and Gifts Excluded are Loan, Endowment, Agency and Plant Funds At the State Level General Funds (state appropriations) Other Funds (also called earmarked funds) Restricted Funds

10 Resources State Appropriations 31500/31525/31510 Columbia Unit Base Budget BOT Allocations 363XX/373XX Carryforward 31534/31533 Tuition & Fees (Academic Units) 401XX Other Revenue 4XXXX Transfers 81XXX

11 What is Carryforward? Surplus funds that are retained by the unit at the end of the fiscal year and included in the following year s budget. Object code & 31533

12 Carryforward Calculation 1. Start with the prior year s carryforward amount (31533 & 31534) 2. Add final BUDGETS for remaining allocations (3 s) 3. Add ACTUAL revenues (4 s) 4. Add ACTUAL transfers from (81XXX) 5. Subtract ACTUAL transfers to (86XXX) 6. Subtract ACTUAL expenditures (5 s) 7. Add ACTUAL IITs (6 s) 8. Balance = New year s carryforward amount The balance should equal the YTD fund balance PLUS the allocation budgets (All the 3 s)

13 State Appropriations Legislative appropriations received from the State for the current operations of the University. Recurring Funds Base Appropriation Below-the-Line Non-Recurring Funds Below-the-Line Access & Equity

14 Tuition and Fees Academic Tuition Must be approved by BOT Department Fee Revenue Must be approved by BOT Revenues collected from students for regular courses provided in the fall, spring, and summer terms used to support the program needs of the academic operating budgets of the University.

15 Resident Undergraduate Cost per Semester Academic Years 2016/2017 to 2017/2018 UNIVERSITY OF SOUTH CAROLINA COLUMBIA Resident Undergraduate Student Estimated Cost Per Semester and Academic Academic Year Dollar Year Change Required Tuition and Fees: I. Total Resident Undergraduate Tuition -Educational & General 4, , Bond Debt Service (16.50) Renovation Reserve Transportation Fee Wellness Center Student Activities Student Health Center Computer Fee Student Union Student Recreation Athletics Activity Total Resident Undergraduate Tuition 5, , II. Technology Fee Total Required Tuition and Fees 5, , Other Student Costs: Average University Housing Cost (1) 3, , Meal Plan (2) 1, , Average Book Cost (3) (1) Based on weighted average costs for housing in FY17 and FY18. (2) Provided by Food Services. (3) Estimate by the USC Financial Aid Office.

16 Department Fee Revenue Revenues collected from students that are used to support the program needs of the academic unit including: Discipline specific tuition charges Enrichment/Enhancement fees Course material fees Student participation fees Discipline specific application and laboratory fees

17 Uses Expenditures 5XXXX Contra-Expenditures 6XXXX Transfers 86XXX

18 BOTTOM LINE CONSTRAINT Budgeted Resources - Budgeted Uses Bottom Line The bottom line must be zero. The goal is to accomplish a balanced budget where uses do not exceed resources.

19 University of South Carolina Columbia Campus A Funds Operating Budget FY18 Fund Sources - Proposed FY18 *excluding prior year fund balance FY2018 Revenue Budget Tuition and Fees 81% State Appropriatio ns 17% Other Revenue 2% Transfers 0% Tuition & Fees 567,119,148 State Appropriations 116,066,190 Grants, Contracts & Gifts 2,121,946 Sales and Service and Other 10,037,241 Transfers 3,079,220 Total 698,423,745

20 University of South Carolina Columbia Campus A Funds Operating Budget FY18 FY2018 Expenditure Budget Instruction 335,566,659 Research 14,682,014 Public Service 3,430,982 Academic Support 50,148,267 Student Services 25,865,577 Institutional Support 89,746,872 Operation and Maintenance of Plant 63,539,635 Scholarships & Fellowships 115,443,739 Total 698,423,745

21 Budget Development Begins with analysis of prior year base budget performance and current year to-date. Budget preparation considers several questions including: 1.) What is the impact of enrollment changes? -Are there increases or decreases planned at the overall university based on strategic goals or at the college and academic program level? -Will the residency mix remain consistent? 2.) What is the estimated impact of tuition and board mandated fee changes? -How much new funding will an increase bring in? -What impact do changes in debt services requirements have? 3.) Will state funding increase or decrease and why? -Is there a state pay package? If so, what portion will USC need to fund? -If new funds are received, are they restricted or for general operating? -Are there any other legislative impacts to consider? 4.) What new initiatives will the Board of Trustees support? -Will a tuition increase or new state funding cover these new initiatives? 5.) Are there any reallocations of current funding or other internal policy impacts?

22 Determining Expendable Resources Identify types of resources Understand your variables Develop a list of assumptions Get consensus Set the resources budget

23 Examples of Assumptions Student Enrollment TERI Impact Temp Hires Departmental Fee Changes Grant/Research Activity Faculty & Staff Turnover

24 Management Team Consensus Get consensus from your management team. If management understands assumptions used in developing resources & uses estimates, they can: -Provide guidance -Anticipate needed changes -Monitor the outcome

25 Variables (Academic Units) Identify the variables that affect your ability to generate resources. Variables to consider with tuition, for example, are as follows: What courses did we teach last year? What level of student participation credit hours did we have in each of these courses? Will we offer these same courses next year? Will we offer new courses next year? Will changes in the academic tuition rate impact my unit s revenue generation? Will changes in overall university student enrollment impact my unit? Will changes in the course requirements for students in this discipline impact my unit s participation and is that impact short-term or long-term in nature?

26 Setting the Resources Budget Based on Resources identified Data Collected Consensus on Assumptions You can Set the resource budget to be used in developing your expenditure budget

27 Establish Expenditure Targets Identify Current Types of Expenditures

28 A Fund Use Examples Personnel Full-time (Classified, Unclassified, Administrative, Faculty) Part-Time (Staff, Graduate Assistants, Student, Faculty) Fringe Benefits (General Fund vs. Department Paid) Fixed Costs Rents Insurance Tuition Abatements Contractual Services Travel Telephone Utilities Repair Services Printing Supplies and Materials Office Educational Postage Maintenance Data Processing Equipment Library Books Computers Non-Capital ($500 to $4,900) Offset to Expenditures Intra-Institutional Transfers Personnel Contractual Services Supplies

29 Personnel How many full-time positions? Are all positions budgeted at full salary? Are any positions vacant? Is the vacancy temporary or permanent? Will these positions be filled? Salary level? Leave buyouts? TERI Impact?

30 Fringe Benefit Rates (Covered by Unit) SC Retirement 18.91% SC Retirement- Group Life 0.15% Police Officers Retirement 21.34% Police Officers Retirement- Group Life 0.20% Police Officers Retirement- Accidental Death 0.20% FICA-Employer: SS up to a salary base of $118, % Medicare- unlimited salary base 1.45% Unemployment Compensation 0.01% Workers Compensation 0.37% Dental Insurance- per covered employee $13.48 per month

31 Health Insurance (Covered by Unit) Coverage Type Employee Only All Health Plans (Except TRICARE) $366.48/Month Employee/Spouse $722.48/Month Employee/Child $560.60/Month Full Family $903.68/Month

32 Total Fringe Benefit Rate Type Fringe Benefits Rate Permanent SCRS/TERI, Temporary/TFAC members Permanent PORS Temporary/TFAC Non-members 27.09% of total salary plus health and dental insurance 29.77% of total salary plus health and dental insurance 8.03% of total salary Student Employees 0.37% of total salary SAM Fringe Benefit Calculator:

33 Travel How much required travel is anticipated? Which travel is grant (or other) funded? Does the department provide travel funds on a prorated basis to each employee? Will travel be required for recruitment of employees and/or graduate students?

34 Supplies/Other What are basic needs- paper, folders, transparencies- to support instruction and administration? What are the current postal rates? Is an increase expected? What are the current telephone charges? Are any additional telephone lines required for research or new employees? What is the impact of the price of gas rising? What is the effect of a potential 2% increase in sales tax?

35 The Big Question Are resources sufficient to support an increase in uses?

36 Budget vs. Actual Budget Actual This is a plan! And this carries out the plan! Budget Payroll Charges General Ledger Journals Payments on Purchase Orders/Travel Authorizations Vouchers IIT s Deposits (Cash Receipts) -Actual Available Balance

37 Budget Office Reports CL025 - HONORS COLLEGE UNIVERSITY OF SOUTH CAROLINA GL Yearly Comparison - Unrestricted Current Funds Year-to-Date as of August 31, 2017 BUDGET ACTUAL VARIANCE FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY Yr Average 5-Yr Average 10-Yr Average 08/31/ /31/2017 BUD vs ACT BUDGET (All 3s) 2,080,710 1,987,413 2,098,045 2,517,684 2,722,413 3,355,737 3,677,092 3,481,920 3,287,688 3,897,721 3,555,776 3,540,032 2,910,642 4,008,530 4,008,530 0 Tution and Fees 1,348,699 1,457,242 1,808, , ,808 1,003,115 1,040,808 1,079,870 1,547,065 1,766,392 1,464,442 1,287,450 1,287,190 1,765,463 1,150,083 (615,380) State Appropriations Grants, Contracts and Gifts 1,586 3,084 1, , ,155 5,753 1,300 5,403 3,341 2,843 1,500 0 (1,500) Sales & Service (1,840) (2,425) 1,235 (500) 110,394 46,986 4, ,555 1,852 11,390 16,381 5,555 0 (5,555) Total Revenue 1,348,445 1,457,901 1,812, ,918 1,103,945 1,050,598 1,045,215 1,089,025 1,552,818 1,773,247 1,471,697 1,302,181 1,306,414 1,772,518 1,150,083 (622,435) Total Personnel 1,064,193 1,065,574 1,213,658 1,287,608 1,468,816 1,562,654 1,827,030 1,989,553 2,028,688 2,374,444 2,130,895 1,956,474 1,588,222 2,348, ,955 2,002,941 Total Fringe 227, , , , , , , , , , , , , , , ,658 PS & Fringe Expenses Subtotal 1,291,435 1,307,513 1,490,962 1,579,436 1,796,855 1,927,619 2,268,737 2,485,173 2,550,798 3,016,668 2,684,213 2,449,799 1,971,520 2,920, ,297 2,461,599 Fringe % 21.35% 22.71% 22.85% 22.66% 22.33% 23.36% 24.18% 24.91% 25.74% 27.05% 25.97% 25.22% 24.13% 24.35% 32.76% 22.90% General Contingency , ,596 Contractual Services 1,294, ,688 1,008, ,318 1,122,987 1,207,656 1,418,465 1,400,377 1,547,380 1,642,600 1,530,119 1,443,295 1,253,874 2,053,101 34,260 2,018,841 Supplies 65,101 42,564 57,066 64,510 87,655 97, , ,826 61, ,891 90, ,737 83,558 99,405 7,758 91,647 Fixed Costs 21,939 37,846 33,006 32,566 27,941 30,180 25,624 29,180 10,101 28,737 22,672 24,764 27,712 15, ,108 Contingency Equipment and Books , , ,693 1, Renovations , Debt Costs Other Charges IIT's (3,200) (119) (2,500) (6,572) (7,722) (7,500) (5,240) (453) (3,800) (7,500) (3,918) (4,899) (4,461) Operating Expenses Subtotal 1,378, ,979 1,096,026 1,083,872 1,239,998 1,338,869 1,588,979 1,535,943 1,615,439 1,768,728 1,640,037 1,569,592 1,362,957 2,860,152 42,960 2,817,192 Total Expenses 2,670,170 2,290,492 2,586,988 2,663,308 3,036,853 3,266,488 3,857,716 4,021,116 4,166,237 4,785,396 4,324,250 4,019,391 3,334,476 5,781, ,257 5,278,791 Transfers In 200, , , , Transfers Out (693,700) (966,000) (1,013,964) (267,366) Total Net Transfers (493,696) (765,996) (813,960) (207,365) ENDING "A" FUNDS BALANCE 265, , , , ,505 1,139, , , , , , , , ,656,356 4,656,356

38 Budget Office Reports UNIVERSITY OF SOUTH CAROLINA Unrestricted Current Funds Review For the period ended August 31, 2017 CL025 - HONORS COLLEGE RESOURCES Prior Year YE Year-to-Date (08/31/2017) Prior Year YTD (08/31/2016) (06/30/2017) Variance Budget Actuals % of Budget Budget Actuals % of Budget Actuals Incr/(Decr) % Change % PY of YE Net position Fund balance 4,008,530 4,008, % 3,251,567 3,251, % 3,897, , % 83.42% Allocations 4,008,530 4,008, % 3,251,567 3,251, % 3,897, , % 83.42% Revenue 1,772,518 1,150, % 1,819, , % 1,773, , % 49.83% Transfers In/Out % % % 0.00% Total Resources 1,772,518 1,150, % 1,819, , % 1,773, , % 49.83% USES Classified Personnel 1,059, , % 876, , % 922,550 29, % 16.18% Unclassified Administrative 38,750 39, % 38,750 48, % 298,250 (8,505) % 16.25% Faculty, Deans, Acad Dept Head 667,432 70, % 616, , % 606,746 (41,379) % 18.49% Graduate Assistants - 2, % % 5,300 2, % 0.00% Temporary Help Non-Students 152,800 11, % 152,800 25, % 202,130 (13,713) % 12.71% Undergraduate Assistants 426,600 42, % 426,600 32, % 329,468 9, % 9.90% Other Personal Services 4, % 4, % 10, % 0.00% Personnel 2,348, , % 2,114, , % 2,374,444 (22,258) -6.04% 15.51% Fringe 572, , % 507, , % 642,224 1, % 17.38% Total Personnel and Fringe 2,920, , % 2,622, , % 3,016,668 (20,531) -4.28% 15.91% General Contingency 692, % 1,781, % % 0.00% Contractual Services 2,053,101 34, % 554,601 20, % 1,642,600 13, % 1.26% Supplies 99,405 7, % 99,405 3, % 104,891 4, % 3.29% Fixed Costs 15, % 13,550 1, % 28,737 (543) % 5.17% Contingency % % % 0.00% Equipment and Books % % % 0.00% Renovations % % % 0.00% Debt Costs % % % 0.00% Other Charges % % % 0.00% Non-Personnel Expenditures 2,860,152 42, % 2,448,806 25, % 1,776,228 17, % 1.45% IIT's % % (7,500) % 0.00% Total Uses 5,781, , % 5,071, , % 4,785,396 (3,269) -0.65% 10.56% Ending "A" Funds Balance - 4,656, % - 3,629, % 885,572 1,026, % % Recap Budget 4,936,452 Current Expenses 502,257 % Budget Expended 10.17% Resources 927,922 Budgeted Uses 5,781,048 Budgeted Uses Unexpended 5,278,791

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