18/19 Detailed Budget Process Overview

Introduction Training Session

Office of Financial Strategy

Marj Talbot, CPA, CA, CIA
Justine Marchuk, CPA, CMA

ICT Support Services

David Greaves
Session Objectives
Part I
 Introduction to university finances
 Position and salary review
 Non-salary budgeting with the Budget Development module

Part II
 Demonstration of the Budget Development module for non-salary
budgeting
 The Full Planning and Budgeting Cycle

Monitoring Reporting
Resource
Planning Budgeting and Forecasting and
Allocation
Tracking Analysis

Institutional Planning
Office of Financial Strategy
& Assessment
Detailed Operating Budget Objectives
 Support University governance/stewardship
 Mechanism for units to plan, manage, and monitor their financial
resources

 Includes operating allocation as determined from resourcing decisions

(envelope)

 Developing realistic budgets to reflect the unit’s planned activities for

the upcoming year

 Update and apply consistent budgeting principles across units

(support institutional level reporting & analysis)
 Fund Structure
U of S
Consolidated

General Restricted Endowment

Fund Fund Fund

Operating Fund (1’s)
 Faculty, Admin & Support Salaries
 Utilities
 Support & Admin supply costs
 Pension & Benefit Plans
 Subsidiaries
Ancillary Fund (2’s)
 Book Store
 Food Services
 Residences
 Real Estate activity
 Sale of Utilities
Student Financial Aid Fund (3’s)
 Scholarship support
Research Fund (4’s)
 Tri-Council funding
 Provincial funding
 Sponsored research
Capital Fund (8’s)
 Capital assets
 Major renovations
 Improvements to capital
Permanent (6’s)
 Endowed chairs
Term (6’s)
 Limited term funds
Internally Restricted
by the Board (6’s)
 E.g., Foreman funds,
Greystone Heritage
 Cons.

Operating Fund (1’s) G R E

Op An

 Funds that primarily receive operating allocation

 1A - Central Institutional
e.g. utilities, legal, insurance
 1B - Operating Budget (mainly 103)
e.g. college/unit primary operations, strategic funds

 Funds that are primarily funded from other sources

(not operating allocation)
 1C - Externally Funded
 1D - Future Employee Benefits
 1E - Non-Credit Instruction & Events
 1F - Fee for Service
 1G - Special Projects
 1H - Subsidiaries
University Revenue Overview
$1,062M consolidated revenue in 2016-17
OPERATING FUND
Operating Budget ($507)
$32 $185 Other operating ($185)

$76 $507 OTHER FUNDS

$58 Research ($186)
Ancillary ($58)
$19 $186
Student financial aid ($19)
Endowment ($32)
Capital ($76)
$27
$47
OPERATING BUDGET REVENUE
Provincial Government Grant ($307)
$126 $307
Tuition ($126)
Other ($27)
Investment income ($47)
Central Operating Budget - Allocation
Allocations from Central Operating Budget: Historic Range
Funding envelopes to revenue centres 55% - 65%
Funding envelopes to support centres 20% - 25%
Funding envelopes to institutional initiatives 5% - 10%
Institutional expenses paid centrally 10% - 15%
Total 100%
Expenses Covered – by Type
Expenses Covered by Operating Budget: Historic Range
Salaries and benefits 65% - 70%
Other non-salary operating expenses 10% - 15%
Externally contracted services 5% - 10%
Utilities 3% - 5%
Additional pension and LTD payments 1% - 2%
Total 100%
Summary of Key Dates
Position and Salary Verification Worksheets (salary/benefits):
 Issued to units: December 15, 2017
 Due back: February 28, 2018

Budget Development (non-salary, revenues, recoveries, transfers):

 Opened to units: December 15, 2017
 Spending allocation budgets entered in late January 2018
 Closes: February 28, 2018

Budget Upload into UniFi – June 2018 (after PCIP and Board approval)

Budget Packages to RCs – early July 2018

Detailed Budget Process
 Key principles
 Position and salary review

 Non-salary budget modifications

 Consolidate budget
Discussion
 Present to PCIP/Board with
unit as
 Upload to UniFi required
 Quarterly reporting

 Prepare for next cycle

Key Principles
 Comprehensive Budgeting
 Accurate and complete budgets required in all relevant operating and ancillary funds
(1’s and 2’s)
 Budgets encouraged in student financial aid and research without grants attached
(3’s and 4’s)
• Budgeted at individual CFOAPAL level
• Does not have to be tied to prior year
• For list of unit funds, refer to Crystal Report 4992

 Must budget associated revenue sources (e.g. contracts, internal and external sale
of goods/services, interfund transfers)

 Fund clean-up and simplification – contact Financial Reporting

Key Principles
Salaries:
 Units to indicate which positions are funded from envelope
 Must be within the 1B -103 grouping (exceptions: Huskie Athletics, Clinical)

 For all other salary expenses, the funding source should be identified
(fund balance, fee-for-service, recovery, or grant)
 Not funded from envelope (operating allocation)
Position Budgeting – Salary & Benefits
 Tools available on the Office of Financial Strategy website:

 Salary Parameters/Full Position Costing

• A summary of position costs based on minimum and average
salaries
• Salaries with projected changes from collective agreements
are applied
https://www.usask.ca/fsd/resources/documents/budgeting/salary_parameters.pdf

 Benefit parameters
• A summary of applicable benefit rates, by employee group,
used for budgeting purposes
https://www.usask.ca/fsd/resources/documents/budgeting/benefit_parameters.pdf
Position and Salary Verification
 Starting point: About-US download (Nov) into MS Access salary budget
database and adjusted with known forecasted changes

 The Office of Financial Strategy printed and distributed the

Position and Salary Verification Worksheets for college/unit review
on December 15, 2017. Unit verification includes:
 Validate FTEs – including vacancies (TBA’s, turnover, attrition)
 Validate CFOAPALs
 Validate designated incumbent
 Validate reasonableness of salary and benefits, including unknown salary increases
pool and position turnover pool (accounts 60301 and 60302 in main fund/org)
 Validate funding status (envelope vs. recovery, etc.)
 Any changes required and return to the Office of Financial Strategy by February 28
Note: for actual changes in About-US, colleges/units must submit EJSs to
ConnectionPoint
Position and Salary Verification – Example
Position and Salary Verification
 College/unit can request electronic copy of worksheets for
analysis/review (must submit hardcopy version back to the Office of
Financial Strategy)

 The Office of Financial Strategy reviews and updates Access salary

budget database

 Discussion with units as required

Non-salary Budgeting
 Prior year budgets have been rolled forward in Self-Service Budget
Development module as a starting point for 2018/19

 Account 59008 – rolled forward permanent operating allocation

budgets

 Account 59009 – zeroed out temporary operating allocation

 Interfund Transfers (800xx) – zeroed out (Interfund Transfer

Form)
Non-salary Budgeting
Non-salary Budgeting
 Units enter changes to non-salary budgets

 Exceptions: units should not budget these accounts in

Budget Development
 57005 (spending allocation)
 6xxxx (salary/benefits accounts)

 Discussion with units as required

Envelope Funding
 Resource allocation and detailed budgeting are two separate, yet
interrelated, processes

 Ongoing operating allocation provided as an “envelope” that

supports the core teaching and support activities of the unit
 Starting point: budget based on 17/18 board approved budget adjusted for
tuition which becomes your base budge for 18/19, upon which your reduction
is calculated
 Contact IPA for any questions about resource allocation
Envelope Funding
 Account 59008 – Operating Allocation - Permanent: is used to provide
ongoing envelope funding (operating allocation) to units – breakdown
by CFOAPAL
 Provided on a monthly (1/12) basis; in FAST, budget column shows full-year
amount

 Account 59009 – Operating Allocation - Temporary: does not denote

envelope funding as it’s not provided on an ongoing basis. This
represents centrally-approved incremental funding for specific
initiatives for a finite period of time.
Budgeting Reports
 Allows RCs to review summarized salary and non-salary budget (and
actual) information
Salary and Non-Salary Reports
• 11718 – Detailed Budget Summary (review report 4992 for list of all funds)
• 11727 – Operating and Non-Operating Funds

Non-salary Reports
• 5007 – Budget Comparison by Fund
• 5008 – Budget Comparison by Organization
• 5009 – Budget Comparison by Account

Variance Analysis Report

• 11933 – Quarterly Variance Analysis

Note:
• Crystal report non-salary data is updated nightly until Budget Development closes
• Crystal report salary data is updated every Friday (for reports 11718 and 11727)
Validation and Review
 Consolidating 18/19 budgeted results by unit

 Occurs after unit’s completion of salary and non-salary budgeting

(March-April timeframe)

 Reporting at aggregate unit level and by individual fund type

 Available to units as Crystal report
 Compare with last year’s (17/18) actual results
 Assess completeness and reasonability
 Any significant errors or omissions?

 Discussion with units

FAST View of Budget Upload – Example
Month O/S YTD Total Annual Original $ YTD Budget
Acct Title YTD Actual
Actual Com m itm ents Activity Budget Variance Fav/Unfav
Revenue
59008 Operating Revenue Alloctn-Ongoing 40,733 40,733 488,798
59009 Operating Revenue Alloctn-Temporary 10,000 10,000 10,000
Subtotal 50,733 50,733 498,798
Total Revenue 50,733 50,733 498,798
Salary Expenditures
60001 Faculty (USFA) 218,633
60003 Sessional Lecturers (CUPE 3287) 106,194
60004 Senior College Administration 100,000
60202 Administrative Employees (ASPA) 44,000
60203 Support Staff (CUPE 1975) 19,000
61001 Canada Pension Plan 0
61002 Employment Insurance 0
61003 Dental Plan 0
61004 Extended Health Care 0
61005 Group Life Insurance 0
61006 Registered Pension Plan 0
61008 Workers' Compensation 0
61009 Physical Activity Centre 0
61011 Benefits Budget (budget only) 68,745
Subtotal 556,572
Total Labour 556,572
Non-Salary Expenditures
70001 Office Supplies 2,000
70101 Printing 10,000
70201 Telephone and Fax 5,000
70202 Postage 4,000
70203 Courier, Delivery & Freight 1,000
70204 Communications - Other 4,000
70601 Advertising & Promotion 5,000
70611 Membership Fees & Dues -Individual 500
78002 Internal fees for services -89,274
Subtotal -57,774
Total Expenditures 498,798
Total Revenues Less Expenses and Transfers 0
Quarterly Variance Analysis and Forecasting
 Quarterly forecasting of actual results to year-end

 Quarterly reporting – actual results versus budget

 Prevent year-end surprises and identify potential issues for action

(discussion with units as required)

 Subsequent budget adjustments:

a) Allow BD2 adjustments, after Board approval of original budget
b) Viewing in FAST: original and adjusted budget

 Can transfer actual YTD operating allocation (59008 and 59009)

between a given unit’s CFOAPALs via JV6 or JF6 rule code during the year
Website Information
 2018/19 budget communications will be posted on the Budgeting
page as they are available

 Includes training materials and other budget-related resources

https://www.usask.ca/fsd/colleges_depts_research/budgeting.php
Contact
 Office of Financial Strategy
Kris McWillie Manager 966-2798 kris.mcwillie@usask.ca
Marj Talbot Financial Analyst 966-2206 marj.talbot@usask.ca
Justine Marchuk Financial Analyst 966-1674 justine.marchuk@usask.ca
Gordon Campbell Financial Analyst 966-4624 gordon.campbell@usask.ca
Jodi MacMillan Financial Analyst 966-4770 jodi.macmillan@usask.ca

 Institutional Planning & Assessment:

Jen Freeman Manager 966-1828 jen.freeman@usask.ca
Tiffany Lepage Financial Analyst 966-1824 tiffany.lepage@usask.ca

 UniFi Training and Support

David Greaves Training Specialist 966-2222 unifisupport@usask.ca