Fiscal Year 2014-15 Budget Kick-Off February 21, 2014 1
FY 2014-15 BUDGET KICK-OFF AGENDA State Funding Budget Assumptions Enrollment Tuition & Fee Revenue Expenses Pooled Fringe Benefit Rate Salary Float Methodology Budget Development Timeline General Notes Process Workshop Schedules Contacts Enhancements Foundation 2
FIU FY 2014-15 E&G BUDGET Funding gap for FY 2014-15 can be covered with incremental revenues, performance funding and one-time savings Will need to use current carry forward funds and projected year end balances to fund strategic priorities to move the university ahead Funding budget gap with non-recurring funds is unsustainable Use FY 2014-15 to strategically plan to address potential shortfalls or reallocations that may need to be made 3
STATE FUNDING State University System funding a new paradigm Since 2007-08, reduced reliance on state appropriations and greater reliance on tuition revenue for public institutions nationally With increases in FTE enrollment, Total Revenue per FTE has declined Florida's experience has been more pronounced over this time 4
PERFORMANCE FUNDING The only new state funding for operations comes from Performance Funding FIU s score of 34 resulted in a top 3 ranking; based on Board of Governors recommended methodology, FIU will receive in FY 2014-15 Board of Governors Recommendation $50M Governor s Recommendation $40M New Funding $6,956,234 $5,564,987 Base Budget Redistribution $312,064 $312,064 Total $7,268,298 $5,877,051 Methodology and actual amount of performance funding for FY 2014-15 will be determined during the 2014 legislative process 5
FIU PERFORMANCE FUNDING METRICS 6
Millions WON T PERFORMANCE FUNDING BRIDGE THE FUNDING GAP? $40M proposed by Governor for Performance Funding will not keep pace with inflation $90 $80 $70 $60 $50 $40 $30 $20 $10 $- Funding Gap $55 FY 2015-16 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 $78 Performance Funding FIU Operating Base Budget -- Inflation Growth Incremental Tuition Perf Funding & Incr. Tuition - 2.8% increase in undergraduate and graduate tuition (except out-of-state component) CPI - Continuation of $40M SUS Performance Funding and continuation of FIU share of $5.6M - Higher Education Price Index of 3.6 percent annually on FIU's recurring base budget of approximately $400M - Continuation of Status Quo Operations No new investments except through redirection of resources 7
FIU FUNDING GAP Era of uncertainty, we need to prepare ourselves to be nimble and resilient in responding to change FIU funding gap will be larger or smaller depending on: Continuation and amount of Performance Based Funding appropriated by the Legislature FIU's ability to earn Performance Based Funding Tuition increases, especially undergraduate in-state tuition Actual rate of inflation Impact of funding gap can be mitigated through our ability to generate additional revenues and continue to create operational efficiencies we need to restructure / refocus 8
A NEW ERA ACCOUNTABILITY AND PERFORMANCE! How can you help to restructure / refocus? Find alternative revenue streams that benefit the university Identify areas that we should focus on that will assist in ensuring we achieve performance expectations Look for operational efficiencies and redundancies Ask the tough questions, what activities / services do we need? Not need? Where can we do more with less? Be the financial gatekeeper for ideas generated in your department 9
FY 2014-15 BUDGET KICK-OFF AGENDA State Funding Budget Assumptions Enrollment Tuition & Fee Revenue Expenses Pooled Fringe Benefit Rate Salary Float Methodology Budget Development Timeline General Notes Process Workshop Schedules Contacts Enhancements Foundation 10
BUDGET ASSUMPTIONS Enrollment 32,000 FTE 29,517 FTE 29,963 FTE 30,863 FTE 31,486 24,000 732 814 3,918 3,420 822 944 3,193 3,192 16,000 Professional 23,921 24,101 25,154 25,555 Graduate Undergraduate 8,000 - FY 2012-13 Actuals FY 2013-14 Budget FY 2013-14 Forecast FY 2014-15 Preliminary Budget FTE Annual Count based on Fiscal Year Fall, Spring, Summer Enrollment Figures are preliminary and subject to change. Professional includes College of Medicine and Law 11
BUDGET ASSUMPTIONS Tuition and Fees Base Tuition Undergraduate: Graduate: Law: 0% Increase 3% Increase 10% Increase Pending BOT / Legislative Approval COM: 2.5% Increase Differential Tuition 0% Increase Applies to Undergraduate tuition only Rate applies to new students as of Fall 2007 except students with prepaid contracts 30% directed towards need based Financial Aid 70% to be used towards undergraduate education expenses Local Fees Athletics, Health and Student Activity Fees Any Fee increases are pending Committee approval Other Fees Technology Fee and Financial Aid will remain at 5% of Tuition Parking Fee No change Shared Services Fee No change from 7% and 5.5% (for Health and A&S)
BUDGET ASSUMPTIONS Expenses E&G Control Totals Salaries Will be based on FY 2013-14 final budget adjusted for: Recurring and nonrecurring legislative actions Changes in fringe benefit rate Recurring salary adjustments University-wide recurring salary adjustments Budgeted centrally for E&G Budgeted by units for non-e&g: Existing bargaining commitments Departments should budget for individual salary actions Other Direct Expenses Interdepartmental Rates - refer to the OFP website for the various rates Property Insurance rates will be provided by Auxiliary & Enterprise Development 13
BUDGET ASSUMPTIONS Pooled Fringe Benefit Rate - Calculation Basis FY 2014-15 rates calculation based on: Actual costs incurred from the two-prior fiscal years FY 2011-12 and FY 2012-13 across all funds and all employee groups Adjustment applied for fringe benefit pool fund balance Estimated 2014 health and retirement insurance changes Included in Fringe Benefits Retirement Programs Insurance Programs Leave-related Programs Tuition Waivers Employees Only Included in Salary Base All Salaries and Wages excluding: Parental and Sabbatical payments Miscellaneous allowances Other Earnings 14
BUDGET ASSUMPTIONS Pooled Fringe Benefit Rate Budget Process Approved rates are built into the budget and are applied from the beginning of the coming fiscal year E&G ex-com Control Totals by Executive Area are adjusted to compensate for changes in the pooled rates Adjustment based on all filled and unfilled budgeted positions as of February 7, 2014 Health Insurance for OPS Employees Working at Least 30 Hours Under the Patient Protection and Affordable Care Act (PPACA), effective Spring 2014, FIU providing health insurance for OPS employees working at least 30 hours Charged to the fringe benefit pool OPS fringe benefit rates adjusted for FY 2014-15 New fringe benefit pool - Graduate Student Assistants Graduate assistant health insurance now charged to the fringe benefit pool New pool created to align this cost with the appropriate employee pool 15
BUDGET ASSUMPTIONS Pooled Fringe Benefit Rate - Proposed Rates Employee Group FY 2013-14 FY 2014-15 Delta Faculty ex College of Medicine / Administrative 29.27% 27.75% -1.52% Faculty College of Medicine 19.51% 18.07% -1.44% Staff 40.54% 38.23% -2.31% Non-Student OPS 2.43% 3.15% 0.71% Graduate Student Assistants N/A 3.33% N/A Non-GA Student OPS 0.47% 0.53% 0.06% Miscellaneous Payroll Allowances and Other Earnings 7.65% 7.65% - Note: Rates are subject to final review and approval 16
BUDGET ASSUMPTIONS Salary Float Methodology Position vacancies continue to create a significant salary float throughout FY 2013-14 Temporary float will continue to be used to mitigate State budget reductions Salary float process: New positions i.e. funded through Critical Investments: University retains 100% of salary float until the position is filled Existing and Replacement Positions: University retains 50% to partially absorb the recurring budget cuts Units keep the remaining 50% of the funds 17
FY 2014-15 BUDGET KICK-OFF AGENDA State Funding Budget Assumptions Enrollment Tuition & Fee Revenue Expenses Pooled Fringe Benefit Rate Salary Float Methodology Budget Development Timeline General Notes Process Workshop Schedules Contacts Enhancements Foundation 18
TIMELINE Key Budget Dates February March April May June 21 Budget Kick-Off 24 Foundation Budget Workshop 25-28 Budget Workshops 4 Legislature in session 5 Open Lab MMC 14 Open Lab BBC 28 EABMs to submit FY 2013-14 Forecast 11 Open Labs MMC 21-30 CFO / VP Budget Reviews 25 EABMs to submit FY 2014-15 Budget 1-2 CFO / VP Budget Reviews 1-15 OFP consolidates University-Wide FY 2014-15 Budget 3 Legislative Session Ends 7 EABMs to submit FY 2014-15 Concession budget requests 15 Budget document is submitted to BOT 28 Governor Approves/Vetoes Budget (estimated) 3 BOT Finance and Audit Committee Meeting 12 BOT Full Board Meeting July 1 FY 2014-15 Budget available in PeopleSoft 19
BUDGET DEVELOPMENT General Notes New Processes Individual units are now required to submit their budget online for Financial Aid funds (471 & 472): Sources of revenues to account for: Institutional Aid Allocations will be provided by Office of Financial Aid Foundation Available funds will be provided by the Foundation Office Departmental Scholarships funds set aside from departmental E&G or Auxiliary funds Each Executive Area Budget Manager will be required to submit a request for Concession funds to the Office of Financial Planning Requests will be reviewed and approved by the CFO; guidelines memo and request form posted on OFP website Funding will be determined based on: Major Events & Commitments first priority funding Other Initiatives funded with remaining available funds 20
BUDGET DEVELOPMENT General Notes Individual units will not be required to submit their budget online for the following funds: Sponsored Research Projects and Miscellaneous/Overhead ID s (Funds 651 and 652) Forecast and budget developed and input into PantherSoft by the Division of Research Recharge Centers (Fund 350) Division of Research will consult with the Recharge Centers to develop the forecast and budget Concessions (Fund 461) Forecast developed by the Office of Financial Planning Budget based on EABM requests that have been approved by the CFO Input into PantherSoft by the Office of Financial Planning 21
BUDGET DEVELOPMENT Process Tools Comprehensive Budget Manual OPS expenses budgeting tool Detail Budget Maintenance open for input Monday, February 23, 2014 Cash Transfer tool open for input Monday, February 23, 2014 Position Tool - open for input Monday, March 11, 2014 Data as of February 17 will be loaded for information purposes only Position tool will be locked until March 11 Forecast OFP has already loaded 7 months of actuals; period 8 actuals will be loaded by March 11 Training Workshops Budget Concepts and On-Line Budget Tool training February 24, 2014 through February 28, 2014 On-demand pre-recorded videos available on-line Open Labs MMC - March 14 and April 11 W6 BBC March 5 HL 124 22
BUDGET DEVELOPMENT Data Entry Monthly budgeting of line items by Activity Nbr by period by account Forecast FY 2014 Requested Budget FY 2015 Salaries July 1, 2013 February 28, 2014 Actuals pre-populated March 1, 2014 - June 30, 2014 July 1, 2014 - June 30, 2015 Pre-populated with Salary Encumbrance (includes Contractual OPS) Projections will be automatically populated in Detail Budget Maintenance on a cash accounting basis Action: Verify projections Action: Update budgeted positions in the Position Tool Revenues Other Direct Expenses Actuals pre-populated Pre-populated with Original Budget of corresponding period; except E&G, based on YTD run rate Actions: Verify projections Enter hourly temporary employee projections into Detail Budget Maintenance Action: Enter projections into Cash Transfer Tool and Detail Budget Maintenance 23
BUDGET DEVELOPMENT Budget Workshops Concepts & On-Line Budgeting Workshops Executive Area Date Time Place All Areas All Funds Tuesday, February 25, 2014 8:45 AM - 11:30 AM GC 150 - Auditorium Student Affairs All Funds * Wednesday, February 26, 2014 8:45 AM - 11:30 AM GC 150 - Auditorium BBC All Funds Thursday, February 27, 2014 10:00AM - 1:00 PM @ BBC - AC1 1226A Academic Affairs - All Funds Friday, February 28, 2014 1:30 PM - 4:30 PM MARC 125 *Streamed live online and recorded $102 On demand How-To videos are also available on the OFP website 24
CONTACTS Executive Area Executive Area Budget Manager Financial Planning / Auxiliary & Enterprise Development Fund Tonja Moore 2168 Anneyra Espinosa 1138 E&G / SGA Academic Affairs Yakeline Rodriguez 6237 Mirtha Alberto 0166 David Snider 1193 Auxiliary Test Prep Fee Sponsored Research Francisco Valines 2333 Janet Medina 1399 Financial Aid Business & Finance Ivette Capote 0345 Collette O Meally 7092 E&G Office of President Melissa Pozo 2111 Collette O Meally 7092 E&G Human Resources Jackie Barba 2466 Janet Medina 0255 E&G Governmental Relations Ana Herrera 3432 Collette O Meally 7092 E&G General Counsel Elianet Deville 2204 Collette O Meally 2103 E&G 25
CONTACTS Executive Area Executive Area Budget Manager Student Affairs Matilde Gramling 2952 Advancement Yolande Flores 8317 External Relations Ahiza Fernandez 0370 UTS Lucy Adames 8014 Facility Operations Edward Brozic 4008 Financial Planning / Auxiliary & Enterprise Development Fund Collette O Meally 1138 E&G / SGA Yakeline Rodriguez 6237 Auxiliary Collette O Meally 7092 E&G Yakeline Rodriguez 6237 Auxiliary Collette O Meally 7092 E&G Yakeline Rodriguez 6237 Auxiliary Anneyra Espinosa 1138 E&G Yakeline Rodriguez 6237 Auxiliary Collette O Meally 7092 E&G Technology Fee Yakeline Rodriguez 6237 Auxiliary Athletics Robert Staub 8392 Yakeline Rodriguez 6237 Athletics 26
CONTACTS Direct Support Organizations Executive Area Budget Manager Auxiliary & Enterprise Development FIU Foundation Inc. Milagros Garcia 8377 David Snider 1193 FIU Research Foundation Inc. Mirtha Alberto 0166 David Snider 1193 FIU Athletic Finance Corp. Robert Staub 8392 David Snider 1193 FIU Health Care Network Bianca Garcia 4260 David Snider 1193 Subject Area Finance Contact Ext. Carry Forward and Concession Anneyra Espinosa 1138 Enrollment / Tuition and Student Fees Janet Medina 1399 Critical Investments Collette O Meally 7092 Position Tool - Salaries Vanessa Pedroso 0160 Other Unrestricted (Funds 601-602) David Snider 1193 PantherSoft Support FSSS Call Center 7200 27
BUDGET DEVELOPMENT Enhancements System Updates and Services PantherSoft Cash transfer tool redesigned : Enhanced search capabilities by Chartfield OPS tool redesigned: Provides monthly allocation and breakdown by OPS types Chartfield string updated every hour in Detail Budget Maintenance with the most up-to-date speedtype Advancement Initiative Fee and Pledged Receivables allocation automation Budget assumption analysis sessions available by appointment with OFP or AED team members. 28
FY 2014-15 BUDGET KICK-OFF AGENDA State Funding Budget Assumptions Enrollment Tuition & Fee Revenue Expenses Pooled Fringe Benefit Rate Salary Float Methodology Budget Development Timeline General Notes Process Workshop Schedules Contacts Enhancements Foundation 29
Fiscal Year 2014-15 Budget Kick-Off February 21, 2014 30