Academic Budgets

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Academic Affairs Budget Workshopfor Academic
Deans, Department Heads, and Directors

• Academic Budgets Administration Review
• October 2009
• Presented by Mike Dale Ladonna Hunton
• Office of the Provost VPAA
• Western Kentucky University

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Academic Budgets Administration

• Staff
• Mike Dale Assistant Vice President for Academic
  Affairs
• Ladonna Hunton Manager, Academic Resources

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Topics for Discussion

• Academic Budgets
• Budget Funds
• Banner Finance Data Screens
• Forms
• Policies
• Budget Development Timetable
• Academic Administration
• Forms
• Pay Information
• Reports
• University Resources

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Academic Budgets
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Budget Funds Categories

• Temporary - Non-recurring Funds (1-Time Funds)
• Permanent - Recurring Funds (Continuing Budget
  Funds)

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Budget Funds Structure

• Program Classification Structure (PCS)
• Instruction
• Research
• Public Service
• Library
• Academic Support
• Student Services
• Institutional Support
• Operation and Maintenance of Plant
• Student Financial Aid
• Mandatory Transfers

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Budget Funds Types

• Action Agenda
• Cost Share
• DELO
• DELO Contract
• Distance Learning Education
• Dual Credit
• Independent Learning
• Winter Term
• Discretionary Funds

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Budget Funds Types

• Facilities Administrative Cost Recovery
  (F A or Indirect Cost Recovery)
• WKU F A FY 10 Allocation Formula
• (Estimated FY 10 Total 1,457,000)
• 582,800 - Colleges (40)
• 291,400 - F A Sponsored Programs (20)
• 400,000 - University (400,000)
• 139,800 - F A Incentive Fund ( Diff)
• 43,000 - F A Intellectual Property
  (43,000)

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Budget Funds Types

• Foundation (Endowment, Gifts, Principal,
  Investment )
• WKU Foundation (WKUF)
• WKU Research Foundation (WKURF)
• Graduate Assistantship
• Professional Development Awards (PDA)
• Provosts Initiatives for Excellence (PIE)
• Scholarship

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Budget Funds Types

• Student Wages
• Student Institutional (Account Code -61501)
• Student Work Study (Account Code -61502)
• Summer School
• Unit Award
• Unit Productivity Awards
• Exemplary Achievement Awards
• Priority Initiative Awards

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Banner Finance Budget Structure

• Organization
• Index
• 100001 399999 (Regular University Indexes)
• 5xxxxx (Grant Indexes)
• 6xxxxx (Cost Share Indexes)
• Account Code
• 50001 59999 (Revenue)
• 61050 62999 (Personnel Salaries Benefits)
• 71050 78999 (Non-personnel Opr, Travel, Sch,
  Capital)

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Budget Summary Report

• WKU Portal ? Banner Finance Reports
• Banner Finance Reports ? 3. Budget Summary
  Reports

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Grant Budget Summary Report

• WKU Portal ? Banner Finance Reports
• Banner Finance Reports ? 11. Grant Budget Summary
  Reports

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Banner Finance Screens

• FGIBDST Organization Budget Status

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Banner Finance Screens

• FGITRND Detail Transaction Activity

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Banner Finance Screens

• FGIBSUM Organization Budget Summary

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Banner Finance Screens

• FOAUAPP User Approval - Requisitions

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Forms Budget Transfer vs. Inter Account

• Budget Transfer Used when a department needs to
  move budgeted funds from one index to another.
• Inter Account Used when a department needs to
  move actual expenses from one index to another.

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Forms Budget Transfer

• In order to move funds from an account code (line
  within a budget), that account code must first
  have sufficient available funds reflected in
  Banner.
• The from account code does not have to be the
  same as the to account code. For example, if
  the funds are coming from a travel line
  (74101), and going to a misc-other line
  (73549), then the transfer form should reflect
  that.

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2009-10
10/19/09
Temporary
Dean, CEBS
240101
73549
950.00
Psychology
240501
74202
950.00
Temporary budget transfer to reimburse Dr. Smith
for attending the 09-10 SEPA conference.
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Budget Transfer Process (Non-Grant Indexes)
Office Associate Prepares
Dept Head Approves
Dean Approves
Does Budget Transfer relate to Account Codes
-61050 through -62349? OR Is the Budget
Transfer Amount gt10,000?
Yes
No
Provosts Office Approves (Mike or Ladonna)
Budget Office Approves (Kim Reed)
Budget Office Approves (Kim Reed)
Accounting Processes
Accounting Processes
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Forms Inter Account

• Credit Index Index from which expense is
  being removed.
• Charge Index Index to which expense is being
  moved.
• In order to move expenses (credit) from an
  account code, the expenses must have first been
  posted to that account code in Banner (i.e. you
  cant move expenses that havent hit the
  system).
• The credit and the charge account code must
  be the same.

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2009-10
To move long distance phone expense to the
correct index.
200014
200011
73911
11.16
73911
11.16
Ladonna Hunton (WAB 239)
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Supporting Documentation
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Inter Account Process (Non-Grant Indexes)
Office Associate Prepares (Credit Index)
Dept Head Approves (Credit Index)
Dept Head Approves (Charge Index)
Does Inter Account relate to Account Codes
-61050 through -62349? OR Is the Inter Account gt
10,000?
Yes
No
Provosts Office Approves (Mike or Ladonna)
Accounting Processes
Accounting Processes
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Policies Carry Forward

• Carry Forward Funds
• Available balances do not automatically roll over
  into the new academic year (in Banner)
• The Board of Regents must first approve the prior
  year carry forward amounts, usually at the late
  October BOR meeting
• While a portion of the carry forward funds are
  usually distributed immediately after BOR
  approval, other indexes must wait until January
  (or later) to receive their carry forward funds.
  (WHY? Possibility of budget reduction at the
  State level or total CF exceeds projected CF)
• When Departmental carry forward is distributed,
  it is allocated to the Deans Office. The Deans
  Office then oversees what amounts are given back
  to the departments.

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Policies Lapse Salary
Lapse Salary is the process by which all lapsed
or unspent salaries and related fringe benefits
are reclaimed and reallocated to cover
non-recurring personnel needs within the
Department / College / Division. While the lapsed
salary process is ongoing, the final allocations
for the lapse salary process usually occur in mid
to late spring. What are lapsed salaries? That
portion of the budgeted salary for a permanent
position that becomes available during the course
of the academic year as a result of the
employees separation, reassignment, sabbatical
leave or unpaid leave of absence. What are lapsed
benefits? That portion of the budgeted benefits
for a permanent position that becomes available
during the course of the academic year.
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Policies Lapse Salary

• When reallocating available lapsed salary /
  benefit funds, priority is given to non-recurring
  personnel needs in the following order
• Departmental (funds are used to cover
  Departmental needs first)
• College (after Departmental needs are covered,
  funds may then be reallocated within the College)
• Division (after the College personnel needs are
  covered, funds are reclaimed / reallocated at the
  Divisional level)

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Policies Lapse Salary

• Funds reclaimed for use in the Divisional pool
  may be used for the following
• Non-budgeted Divisional expenses from which all
  Colleges / Areas benefits (such as accreditation
  expense reimbursement, advertising expense for
  non-faculty searches, interdisciplinary programs,
  etc.)
• Non-recurring personnel needs within other
  Colleges / Areas
• To establish a reserve for state-mandated budget
  reductions.

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Policies Lapse Salary

• What can lapsed salaries be used for?
• Unanticipated lump sum vacation payments for
  employees who terminate employment during the
  academic year.
• Actual cost if new hire exceeds budgeted salary
  amount for the vacancy.
• Salary adjustments that occur during the academic
  year.
• Part time faculty salaries where expenses exceed
  Divisional allocation.

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Policies Lapse Salary

• What can lapsed salaries be used for? (cont.)
• Short term temporary appointments.
• Other personnel needs (such as student wages,
  part time staff) for which the actual expenses
  are expected to exceed the budgeted funds.
• One time non-personnel needs (requires advance
  approval from Provost)
• What can lapsed benefits be used for?
• Lapsed benefits can only be used to cover benefit
  needs.

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Policies Lapse Salary Spreadsheet
Confusion now hath made his masterpiece!
William Shakespeare
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Policies Lapse Salary Spreadsheet
Example - Employee Resignation Replacement
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Policies Lapse Salary Spreadsheet
Example - Salary Adjustment
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Policies Lapse Salary Spreadsheet
Example - Sabbatical and Temporary Hire
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Policies Lapse Salary Spreadsheet
Example - PT Faculty, Stipends, Student Worker
and PT Staff
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Policies (cont.)

• Accreditation Fee Reimbursement
• Classroom Improvement / Instructional Equipment
  Allocations
• Course Fee Distribution
• Faculty Search Reimbursement
• Part Time Faculty Allocations
• Professional Development Awards
• http//www.wku.edu/Dept/Support/AcadAffairs/

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Budget Development Timetable

• Fiscal Year (July 1 June 30)
• Operating Budget Needs (July September)
• Staffing Plans (July September)
• Carry Forward Allocations (November)
• Budget Process (Begins in Nov Dec for next FY)
• Revenue Estimates (January February)
• Salary Recommendations (February March)
• Lapse Calculations (February May)
• Fiscal Year-end Closing (mid April to mid July)
• Year-end Balancing (June mid July)

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Academic Administration
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Forms
Special Instructional Assignment (SIA)
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Forms
Consulting Services Internal / External
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Forms
EO Form 1
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Forms
EO Form 2
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Forms
EO Form 3
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Forms
EO Waiver Request
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Forms
Form 16 Special Payment Authorization
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Forms
Electronic Personnel Action Form (EPAF)
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Pay Info Faculty Promotions

• FY 10 Faculty Promotional Adjustments
• 6,072 Professor
• 5,100 Associate Professor
• 4,008 Assistant Professor (BGCC only)
• Faculty promotional amounts are recalculated
  annually, based on 10 of the previous years
  median University salary for the rank from which
  the faculty member is being promoted.

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Pay Info Fringe Benefit Rate Calculations

• FT Faculty and Professional Staff (Exempt)
  Employees
• (Annual Salary x 0.2301) 5,192
• FT Support Staff (Nonexempt) Employees
• (Annual Salary x 0.1978) 5,192
• PT Employees
• (Salary x 0.0797)
• Students / GAs
• (Salary x 0.0032) (Academic Year)
• (Salary x 0.0797) (Summer)
• Effective Date January 1, 2010
• Sources Sponsored Programs / Budget Office

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Pay Info Part-Time Faculty Rates

• FY 10 Part-Time Faculty Rates (3-hr course)
• Pay Grade 4 2,072
• Pay Grade 3 1,940
• Pay Grade 2 1,672
• Pay Grade 1 1,536

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Pay Info Payroll

• Reclassifications / Salary Adjustments (Jul 1 /
  Jan 1)
• Salary Adjustments for Degrees Certificates
• Payment of New Faculty
• Reappointment of Temporary Full-Time Faculty
• Eligibility for Benefits

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Pay Info Personnel

• Full-Time Faculty ? Transitional Retirement
  Status
• Transitional Retirees to Full Retirement
• Status Regular vs. Temporary Status
• Status Full Time vs. Part Time
• Salary Recommendations
• COLA
• Merit
• Adjustments (Market, Equity, etc.)

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Pay Info Special Faculty Pay Rates

• FT Faculty Overload 3,000
• Retired Faculty Member 4,000
• Summer School FT Faculty Member 9 of 9-months
  base salary with 4,500 max (2009)
• Winter Term FT Faculty Member Sliding scale of
  350 to 4,900
• Rates are for payment for teaching a 3-hour course

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Pay Info Staff Compensation Schedule
Source Department of Human Resources (effective
July 1, 2009)
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Reports Benchmark Universities

• Ball State University (IN)
• California State University Chico
• California State University Fresno
• Eastern Illinois University
• Eastern Michigan University
• Florida Atlantic University Boca Raton
• Indiana State University
• Middle Tennessee State University
• Missouri State University
• Montclair State University (NJ)

• Northern Arizona University
• Oakland University (MI)
• Stephen F. Austin State University (TX)
• Towson University (MD)
• University of Central Missouri
• University of Northern Iowa
• Western Illinois University
• Wichita State University (KS)
• Youngstown State University (OH)

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Reports Salary Surveys

• Benchmark Salary Reports
• CUPA-HR
• Faculty Salaries by CIP Code and Rank
• Administrative Salaries
• Mid-Level Professional Salaries
• IPEDS
• Average Faculty Salaries by Rank

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University Resources

• Academic Administrative Handbook
• Faculty Handbook
• Faculty / Staff Links (WKU Web Page)
• http//www.wku.edu/faculty.html
• Online Budget Books (FY 02 - FY 10)
• Online Budgeted Salary Information (FY 09 FY
  10)
• Discretionary Spending Policy
• http//www.wku.edu/wkufoundationinc/Procedures/Dis
  cretionary20Spending20Policy200820update.pdf

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University Resources

• Moving Expense Policy
• http//www.wku.edu/Dept/Support/FinAdmin/PoilcyPr
  ocedures.htmFaculty Handbook
• Personal Service Contract
• http//www.wku.edu/Dept/Support/FinAdmin/PS20New
  20Policy202004.pdf
• Procurement Card Purchasing Guidelines
• http//www.wku.edu/Dept/Support/FinAdmin/Purchasin
  g.htm
• Travel
• http//www.wku.edu/Dept/Support/FinAdmin/Travel.ht
  m