Budget OfficeBudget Training

SessionFebruary 2014

Intro Budgeting Timeline Update on NSTAR upgrade Budgeting Changes and Guidelines HR position budgeting Finance budgeting Proofing and Reviews Questions

Topics for Training Session

State and Local Fund Budgets input into NSTAR create Budget Book which is available on the Budget Office website

Introduction

State and Local Fund Budgets help to develop the overall NAU operating budget for All Funds approved by ABOR at June Board meeting

Introduction

All Funds Budgeting◦Important to consider all funding sources

during the budgeting process and throughout the year

◦Helps to determine what resources are available to fund University, Division and Department priorities

Introduction

February:◦ NSTAR installation/budget training sessions

Early March: ◦ Budget Guidelines issued

Contract Masters ◦ Issued March 5th/ Returned March 26th

March 3rd-April 14th◦ Local AND State Budget input templates available in NSTAR◦ (March 24th is halfway point)

April 15th – April 28th◦ Local AND State Budget input templates available for JFRs only

April 29th – May 8th ◦ Budget Office review

May 9th ◦ Budget materials due to ABOR (placeholder)

Late May◦ Zero Budget Lines loaded for early FY15 requisitions

Budgeting Timeline

Proposed Position Management Deadlines to facilitate NSTAR budget deadlines:April 7th new position number requestsApril 11th ePAR Final Approval

NSTAR Upgrade to Version 10◦ Version 10 Computer Requirements and Installation

Instructions can be found on the Budget website on the NSTAR page.

NSTAR Upgrade Update

Budgeting account classes where expenses and revenues will occur◦ Basis for zero budget line load for non-personnel

expenses and revenue Budget Office will load zero budget lines for all personnel

classes (state and local), voluntary transfers in and out, 810 & 830 (local), and 739 class – interdepartmental (local)

Separate budgeting classes for fee types ◦ Break out student mandatory, class, program fees

FY15 Budgeting Changes

Final Guidelines will be published at the beginning of March

Review key points included in the Budgeting Guidelines

FY15 Budgeting Guidelines

Contract Master Salary budget total on HR must match

Finance salary budget total for each Department ID

Using the Department Salary Set Aside◦ Use for potential positions and/or local fund salary

adjustments Split Funded positions

◦ Need to coordinate that all areas budget properly for the FTE and salary

HR/Position Budgeting

HR Position Query◦ Use when cleaning up positions by inactivating

unused positions or to identify positions to be unbudgeted Please note that only unoccupied positions can be

unbudgeted

HR/Position Budgeting

ERE◦ Review Rule of Thumb spreadsheet gives ERE

estimated rates for new hires of Faculty, Service Professionals, & Classified Staff.

HR/Position Budgeting

ERE◦ Use ERS (Business Objects) Payroll Reports for

ERE rates for current hires.

HR/Position Budgeting

Tools to Use to analyze YTD activity◦ ERS (Business Objects) Reports

Transaction Detail Status of Funds

◦ PS Financials (Budget Overview)◦ ITS Website= https://nau.edu/its/learn/psfinancials_bud

Finance Budgeting

Added expenses to finance input template for state funds to more accurately predict FY15 expenses

Budgeting Template Enhancements

Encumbrances on Local Fund Department IDs◦ Estimate for remainder of year activity should

take into account encumbrances

Budgeting Template Enhancements

 

 FY2013 Actuals

FY2014 YTD Actual Expense

FY2014 YTD Encumbered

FY2014  Budget  FY2014

Estimated YE Budget

FY2015 Budget Office Adjs

FY2015 User Budget

Difference Budget to

Actuals

Operating Expenses:                

            OKAY - Salary values Match  

  Personnel Services           HR Salary:   4,093,073  

  711  Salaries           3,673,826               1,916,584               1,807,801               4,089,071               4,093,073           2,176,489

  712  Other Wages                34,247                    21,258                    250,000                   20,000                   (21,258)

  713  Student Wages           1,276,833                  642,755                 1,393,073                 600,000                 (642,755)

  714  Work Study                              -                                    -  

 

715  Graduate Assistants                92,275                    43,624                    32,284                    96,990                     (43,624)

 

720  Employee Related Expenses           1,876,482                  987,133                 2,336,039                 900,000                 (987,133)

  Total Personnel Services         6,953,663             3,611,354             1,840,085             8,165,173            1,520,000           4,093,073             481,720

Local transfers◦ UCA transfers versus other departments

NSTAR

◦ Voluntary transfers vs. Mandatory transfers (for debt service payments)

◦ Capital project transfers would be a net transfer out as the $ go to unexpended plant fund

◦ Transfers versus Interdepartmental Expense

Finance Budgeting

FY15 PS Financial Budget Errors will occur if budgeting is not done to appropriate revenue or expense classes

Emphasize that particular classes are needed if you have telephone charges, risk insurance, other University-wide interfaces, or clearing accounts

Finance Budgeting

730 postage & freight chargeback739 (loaded) HR advertising, HR finger printing, risk insurance

740 telephone750 NAU Transportation long-term vehicle rental, labor on facility work order service761 NAU Transportation vehicle rental, travel expenses on Pcard

Listing of key NSTAR Reports and Descriptions

Reports will be revisited over the next year after budgeting with version 10 formatting changes.

NSTAR Reports

Salary and FTE◦ Do numbers match between Finance and HR

applications?◦ Is Budget at least the current actual PeopleSoft

salary unless on special assignment? Use non special assignment salary for budgeting

◦ Reallocating State Operations budget to Salary requires Budget Office approval.

Revenue◦ If you have Administrative Overhead eligible

Revenue, budget for Admin OH Fee. Transfers

◦ Voluntary transfers from UCA have been loaded and approved or have been coordinated with other areas

Proofing and Reviews

Proofing and Reviews YTD Local actuals vs. full year projections

◦ Are the full year projections greater than YTD actuals; what transactions do you still expect to occur between now and the end of the year that will impact your YTD amounts?

Do budgeted increases or decreases for next year make sense?◦ What are your recurring expenses (e.g. people) and

what are the changes you expect to those recurring expenses?

◦ Are there changes to your recurring revenues?◦ What are your 1 time expenses?◦ Do you expect to see a decrease or increase in your

local ending balance compared to your beginning balance?

Balance forwards to next year are not negative◦ We do not want to budget negative local fund

balances rolling into next year

Use Notes column on the NSTAR finance input template to communicate significant changes

Have all Department ID’s on Threshold Report been budgeted

Proofing and Reviews

Don’t wait! Call us as questions arise!

Questions