Budget Memorandum FY 2013 by 7c3sP4v


Office of Finance & Accounting
TO:      Vice Presidents, Deans, Directors, and Budget Managers

FROM: David Runyan, Controller
      Cosonya Stephens, Budget Analyst

DATE: October 25, 2011

RE:      Budget Development Process – Fiscal Year 2012-2013

On October 5th, an emailed memorandum was sent from Steve Lasley to formally introduce the
modified version of “zero-base” budget approach for FY 12-13. The modified version we plan to use
will instead require each department to start from a zero base and itemize the budget requests but
within the context of the actual expenditure amount (by account) incurred during the previous fiscal

The Budget Committee has begun their review of projected revenues for the budget year 2012-2013.
To improve the efficiency of the budget process, please have the budget managers reporting to you
enter the 2012-2013 budget requests directly into the Budget Development module in Banner as we did
last year.

To facilitate the completion of the budget request, please fill out the two forms available on our website.
The forms can be retrieved at the following link: http://www.belmont.edu/hr/payroll/index.html

                  New/Upgrade Staff Position Request
                  Capital Expenditure Request

NOTE 1: The former “Travel and Development Request” form has been incorporated into the
narrative, and is no longer necessary to fill out separately.

NOTE 2: The Academic Enrichment Fund (AEF) budgeting request is separate from the operating
fund process and should not be included on the attachments. AEF instructions and timetable will
follow at a later date.

All forms must be included with your budget request narrative. If any are non-applicable, please
indicate as such in your memo.

To facilitate the review process, each dean or director will be asked to be present at budget hearings to
respond to questions from budget committee and members of senior leadership. These meetings will be
scheduled at a later date for late January – February, 2012.

To facilitate the committee’s review of your requests, please prepare a budget narrative in an Excel
document for requested amounts of operating expenses and special projects to support your budget
request. Do not depart from the following format and use 8.5 by 11 inch letter (landscape) paper so
that the narrative will fit in the presentation package sent to senior leadership. The narrative must be
presented in the provided format. The spreadsheet template has been attached in a separate
                                         Org 1234 Department of XYZ
                                              Budget Narrative


1. Faculty/Staff Request
       Narrative includes each new position and salary request only – detailed support and justification is to
       be reflected on the specific new position request form.
        **New Staff Position/Upgrade Justification Form must be submitted with each request, with all
       appropriate Dean/Director/Provost/HR signatures in order to be considered. **

2. Request for Operational Funds
       Note that the attached Excel spreadsheet requests full itemization of funds requested, and not just the
       incremental change from the prior fiscal year.
       Also: We no longer budget to a miscellaneous expense line, so do not include “miscellaneous” as a
       line item.

3. Request for Capital Expenditures > $5,000 (73000) or Special Projects (76100)
       Please include a detailed narrative paragraph describing the merits of the projects and purchases and
       how they support growth, etc.
       **Capital Expenditure Request Form for Fixed Asset Purchases over $5,000 must be submitted with
       each request, with authorized approval signatures included in order to be considered**


    1. Please use expenditures as a guide for each account request amount, not prior year budget. The
       following are examples of acceptable methodologies:
           a. Most recent full year of actual expenditures (FY11).
           b. FY12 actual-to-date, with projections for remaining months to obtain a full 12 month period.
           c. Multi-year history of actual expenditures (e.g. 2-year, 3-year history).

    2. The former account, “Copies and Printing” (70100) will be broken out in to two separate accounts for
       Fiscal Year 2012/13, with the following descriptions:
           a. Administrative Copies (70100): the items to be accounted for in this account are expenses
               related to specific copies and related supplies for departmental copy machines, as well as non-
               marketing related materials such as syllabus or classroom materials produced in the university
               copy center.
           b. Printing (70023): these items should primarily relate to printing/copy expenses generated from
               the production of marketing related material that feature marketing messages (program
               brochures, posters, flyers, view books, door hangers, table tents, etc.) generated in the university
               copy center or printed by an outside vendor.

    3. U.S. Postal Rates to increase January 22, 2012. Mailing services include First-Class Mail, Standard
       Mail, Periodicals, Package Services and Extra Services. Prices for shipping services will also change on
       January 22. You will need to factor these increases in to your FY12/13 budget. Please contact Mail
       Services for details on specific rate changes.

    4. Strategic Marketing Plans Included in Narrative – The marketing plans that were generated for the first
       time last year are now incorporated directly in to the budget process. These are located in separate red
       tabs on the Narrative spreadsheet, beginning at the tab labeled, “Mktg Project 1.” There are separate
       tabs for each proposed project, up to five, with a final marketing project summary tab. Five Marketing
       related expense accounts are included for each project:
            a.   Advertising (70019)
            b.   Promotional Items (70320)
            c.   Printing (70023)
            d.   Recruiting Signage (70028)
            e.   Website (70021)

        It is possible to have both marketing related costs and non-marketing related costs for the five accounts
        noted above. To the extent that costs in the five categories are marketing related, include the supporting
        detail on the marketing project tabs. If there are non-marketing related costs in any of the above five
        accounts, identify them separately on the “Operational Budget” tab of the narrative.

        The Strategic Marketing Team will review the marketing plan document with each
        College/School/Department with the goal of recommending the associated marketing budgets to the
        budget committee. For any questions relating to the Marketing Plan section, please contact Annie
        Mitchell directly at extension 6178.

    5. Please use the examples given for the accounts identified in the Narrative. Headings, subtotals and totals
       are protected fields – totals fill in automatically when you input data. You can insert and/or delete rows
       as needed. Text should wrap, expanding the cell as needed for whatever is input. Remember to delete the
       example information that is currently reflected on the narrative before inputting your departmental

    6. For all additional account numbers needed, please copy/paste the final example, titled, “Generic
       Account Section.” The cells in this section are not protected and can be copied as many times as
       needed for each additional account number request. Please remember to change the account name and
       number each time this area is copied to properly match the account requested.

    7. Operating Budget Totals Section – There are three components to the Operational Budget Total section:
               (a) Provided Accounts Subtotal (green headers). This total is automatically fed from the
                   example accounts provided in the spreadsheet. You do not need to input anything for this
               (b) Marketing Plan Subtotal (red header). This is also automatically fed from the “Mktg
                   Summary” tab, which is a total of all of the marketing projects identified and completed per
                   Step 2 above. You do not need to input anything for this line.
               (c) Accounts Added Subtotal (blue headers). This is the only subtotal that requires input from
                   the department. Currently, the formula includes only the total from the “Generic Account”
                   section. For each additional account added by the department (per Step 4 above), add the
                   account total to the existing formula. When complete, this cell should be picking up each
                   account total with a blue header.

The framework and timelines for the FY 2012-2013 budget have been developed and a copy of this timeline will
be available in the near future. In the interim, please adhere to deadlines established by your dean/director.
Banner budget development instructions will be sent in a separate document for your review.

We look forward to working with you to develop an operating budget for the fiscal year ending May 31, 2013.
Our goal is to complete this process as efficiently and with the least disruptions to your normal work cycle as
possible. If you have any questions, feel free to call Cosonya at extension 6753.


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