My FY 2005 Budget

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My FY 2005 Budget

• Bill Woolf

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Budget Goals
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Budget Goals

• Content without method ends in sentimental chaos
• Method without content in sophistry
• Material without form is a dead-weight of fact
• Form without material is a spinning of cobwebs.
• (Johann Wolfgang von Goethe, Theory of Color,
  1810)

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Budget Goals

• Pareto's Principle The 80-20 Rule
• Vilfredo Pareto (1848-1923) was an Italian
  economist who, in 1906,observed that twenty
  percent of the Italian people owned eighty
  percent of their country's accumulated wealth.
  Over time and through application in a variety of
  environments, this analytic has come to be called
  Pareto's Principle.

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Budget Goals

• Breakeven Budget
• April 1st Deadline
• EARS
• CARTS
• Cost Codes

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Budget Calendar

• Work backward from April 1st

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Historical v. Zero-based Budget

• The Department of Pathology will continue the
  practice of zero-based budgeting for fiscal year
  2004. A zero-based budget starts with a budget
  of 0 and adds individual items of expense only
  as they are analyzed and justified as a necessary
  cost in the upcoming year. No cost will be
  carried over just because it was included in last
  year's budget. We will standardize the process
  by adopting the included Detailed Budget Form,
  which coincidentally is very similar to the form
  used by the NIH when applying for grants, to
  better compare one projects cost/benefit with
  another.

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Data Collection

• Resemble Grant Application
• Familiar
• Simple
• Appropriate level of detail
• Requires thought

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Data Collection

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Data Collection

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Data Collection

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CARTS

• CLINICAL
• ADMINISTRATIVE
• RESEARCH
• TEACHING
• STRATEGIC

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CARTS

• CLINICAL
• A10 Clinical Corresponds to all patient care
  functions including those supported by patient
  revenues, indigent care and capitated revenue.
  All expenses to support direct patient care
  clinical functions would fall under this fund
  group. This fund category would include not only
  clinical provider expenses but also staff and
  overhead costs associated with the clinical
  operations.
• A11 Clinical Contract Corresponds to clinical
  services supported by contract revenue. This
  fund category would include not only clinical
  provider expenses but also staff and overhead
  costs associated with the clinical operations.

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CARTS

• ADMINISTRATIVE
• A20 Administrative Corresponds to all
  administrative functions supported through the
  COSA (primarily medical administration) and
  non-COSA funds from other sources.

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CARTS

• RESEARCH
• A30 Research Corresponds to revenue and
  expenses related to support of the research
  program in the department. This category can
  include administrative costs and overhead costs
  associated with research.

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CARTS

• TEACHING
• A40 Teaching GME Corresponds only to those
  faculty, staff, and related expenses funded
  through the COSA GME Supervision allocation
• A41 Teaching non-GME Corresponds to revenue
  and expenses related to support of the education
  mission. Note that this does not include any
  support for GME. This category can include
  administrative costs and overhead costs
  associated with education.

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CARTS

• STRATEGIC
• A50 Strategic and Other Corresponds to
  programs and activities funded through COSA
  allocations categorized as "purchased services -
  MDs and staff" (e.g., Poison Control Center),
  "strategic program support" (e.g., oncology,
  primary care), "strategic chair-designated
  support" (e.g., chair recruitment packages, etc),
  and "strategic call support". "Other" could
  include all revenues not specifically identified
  in the other fund groups including outside
  professional consulting income, gifts, etc.
  Faculty, staff, and overhead costs related to the
  purpose of the revenue would be charged here.

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CARTS
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CARTS
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EARS

• Enterprise Accounting and Reporting System
• Subtotals revenue and expenses into categories to
  help the School of Medicine consolidate their
  reporting

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EARS

• EARS Reporting Categories
• University Revenue
• 1. EDUCATION AND GENERAL-L1
• 2. OTHER VCU INCOME
• 3. SPONSORED PROGRAMS REV-L5
• 4. SPONSORED PROGRAMS POOL ACCTS
• 5. FACR REVENUE-L2
• 6. VAMC NON-CONTRACTUAL SUPPORT

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EARS

• EARS Reporting Categories
• Practice Revenue
• 7. PATIENT RECEIPTS-MCVP
• 8. COSA CONTRACTUAL REVENUE
• 9. CLINICAL CONTRACT REVENUE
• 10. OTHER CONTRACTUAL REVENUE
• 11. OTHER MCVP INCOME

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EARS

• EARS Reporting Categories
• Personnel Expenses
• 12. FACULTY SALARIES
• 13. FACULTY INCENTIVE PAYMENTS
• 14. FACULTY FRINGE BENEFITS
• 15. STAFF SALARIES
• 16. STAFF FRINGE BENEFITS
• 17. OTHER PERSONNEL EXPENSES

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EARS

• EARS Reporting Categories
• Non-Personnel Expenses
• 18. CONTRACTUAL SERVICES
• 19. EMPLOYEE BUSINESS EXPENSES
• 20. LIABILITY INSURANCE
• 21. SUPPLIES AND SERVICES
• 22. MCVP BUSINESS OFFICE EXPENSE
• 23. MCVP BILLING EXPENSE
• 24. MCVP DEVELOPMENT FUND CONTRIBUTION
• 25. CLINICAL EARNINGS CONTRIBUTION

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EARS

• EARS Reporting Categories
• Non-Personnel Expenses (Cont)
• 26. LEASES AND OCCUPANCY COSTS
• 27. EQUIPMENT
• 28. OTHER OPERATING EXPENSE
• 29. F/A COSTS CHARGED TO SPONSORED PROG
• 30. MCVP TRANSFERS TO VCU
• 31. MCVP TRANSFERS TO MCVF
• 32. MCVP TRANSFERS DUE TO VCU

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EARS

• EARS Reporting Categories
• Definitions
• Faculty Salaries
• Source Fundware
• Object code 5120
• Source FRS
• Object codes 1120 through 1129
• Combined in a Cognos PowerPlay Cube

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SOM Budget
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The End

• Submit questions
• Bill Woolf
• 804-828-0427
• wwoolf_at_vcu.edu