Planning UC Berkeley Budget Office University of California

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					University of California, Berkeley

                CalPlanning | Envision. Commit. Act.




                      Budget Process Training Class
      Welcome!


 Introduce yourself
   – Name
   – Division/Control Unit
   – Question you hope gets answered at training




                                                   2
      Today’s Learning Objectives

Themes                       Learning Objectives
Business Process             Understand business process changes to the ledgers
                             and chart of accounts that are taking effect on July 1,
                             2012
Change Impacts               Understand how these changes will impact this year’s
                             FY12-13 budget call
Background                   Learn important background that you will need to
                             understand prior to taking the CalPlanning training
                             class
FY11-12 Forecast and FY12-   Prepare for completing your FY11-12 Forecast and
13 Operating Budget          FY12-13 Operating Budget in the CalPlanning Tool
Support                      Know where to go for additional information and
                             support




                                                                                       3
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

6    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

7    What’s Next?
                                                            4
           What is CalPlanning?


               CalPlanning                        BFS/BAIRS
                                      • Data entry for forecast and
                 CalPlan                operating budget BFS
                                      • Planning level chart of accounts
                                                  PeopleSoft 9.0
                                      • Actuals data summarized to
                                        CalPlan chart of accounts
Budgets,
Forecasts at
CalPlan CoA                  CalPlan CoA &
                             Summarized Actuals

                                    • Full BFS chart of accounts
                 CalRptg            • Contains
                              CoA , actuals & chartstring-level
                                                     BAIRS
                                      reporting on actuals for FY10 to
                             encumbrances
                                      present, and…
                                    • CalPlan forecast and operating bgt

                                                                           5
        What’s in a Name? Budget Before and After

 What we currently call budget (TempBudg) is a
  combination of
   – A plan for revenue
   – The “actual” movements (transfers) of resource allocations
     (authorization to spend), and
   – A plan for expenditures
   – A representation of a prior year carryfoward
 In CalPlanning, budget is exclusively a plan:
   –   A plan for revenues
   –   A plan for resource transfers
   –   A plan for expenditures
   –   The calculation of an ending balance from the planned revenues,
       transfers, and expenditures

                                                                     6
     Transition to CalPlanning

Today’s training will focus on three aspects of our
shift to CalPlanning:
1. Adjusting a seeded FY11-12 forecast to predict
    aggregate fund balances
2. Creating an Operating Budget in CalPlanning
3. Implementing two structural changes to the
    actuals ledgers
  – Operating Transfers booked in actuals to a new 7XXXX
    account range for non-Contract and Grant funds
  – Carryforwards booked to the Dept ID, Chartfield1, and
    Chartfield2 in actuals
                                                       7
          Breaking Down the Temporary Budget

Sample Division – Central Fund
                                                 Revenues of $19 million recorded at central
All Revenues/Expenses YTD Feb 2012
                                                 campus orgs; not visible to the department
Summary Report by Accounts
                                              TempBudg          Actuals         Balance
  Revenue                                                 0               0                     0

  Expenditures
  50XXX      Academic Wages                    (14,000,000)      8,200,000      (5,800,000)
  51XXX      Staff Wages                        (3,700,000)      2,100,000      (1,600,000)
  52XXX       Employee Comp                                        (90,000)        (90,000)
  53XXX       Retirement & Benefits             (6,600,000)      2,800,000      (3,800,000)
  55XXX       General Supplies                    3,400,000        150,000        3,550,000
  573XX       Miscellaneous                         (20,000)       120,000          100,000
  58000       Unallocated                         1,600,000                       1,600,000
  58100       Reappropriation                     (170,000)                       (170,000)
  5999X       Control Unit Budget Prov            (220,000)                       (220,000)
                        Total Expenditures     (19,710,000)     13,280,000      (6,430,000)
TempBudg to date balances are a snapshot - the net of a variety of transactions since the
beginning of the year. How do we know where we started? What’s still outstanding?           8
          Breaking Down the Temporary Budget

Sample Division – Central Fund         1             2              3
All Revs/Expenses YTD Feb 2012
Summary Report by Accounts                   Temporary Budget FYTD (Feb 2012)
                                                     7/1
                                    Prior Year   PermBudg     All Other to  Total Temp
                                   Carryforward Download                       July
                                                              What does the Budg 1
                                                                  Date
Revenue                                        0           0 permanent budget
                                                                          0            0
                                                                download represent?
Expenditures                                                    1. A central campus
50XXX Academic Wages                             (12,440,000)    (1,560,000) (14,000,000)
                                                                   transfer of $19
51XXX Staff Wages                                 (1,700,000)    (2,000,000)    (3,700,000)
                                                                   million to the
52XXX Employee Comp
                                                                   department, and
53XXX Retirement & Benefits                       (1,700,000)    (1,850,000)    (6,600,000)
                                                                2. The department’s
55XXX General Supplies                               (11,000)      3,411,000      3,400,000
                                                                   plan to spend $19
573XX Miscellaneous                                                  (20,000)       (20,000)
58000 Unallocated                                                  million
                                                                   1,600,000      1,600,000
58100   Reappropriation              (170,000)                                    (170,000)
5999X Control Unit Budget Prov                       (66,000)      (154,000)      (220,000)
              Total Expenditures     (170,000) (18,967,000)        (573,000)   (19,710,000)
                                                                                       9
          All Other Activity in Temp Budget

Sample Division – Central Fund         1              2             3
All Revs/Expenses YTD Feb 2012
Summary Report by Accounts         All Other Activity in Temporary Budget FYTD (Feb 2012)
                                                       To/Fr      To/Fr Other
                                     Internal        Central,    Funds (plant,  Total All
                                    Rebudget        Other Divs endow, etc.)      Other
Revenue                                       0               0               0           0

Expenditures
50XXX Academic Wages                 (700,000)      (800,000)                  (1,500,000)
51XXX Staff Wages                  (2,900,000)       900,000                   (2,000,000)
52XXX Employee Comp
53XXX Retirement & Benefits        (1,450,000)      (400,000)                  (1,850,000)
55XXX General Supplies               3,500,000       (89,000)                    3,411,000
573XX Miscellaneous                    (20,000)                                   (20,000)
58000 Unallocated                    1,570,000       (30,000)        60,000      1,600,000
58100   Reappropriation
5999X Control Unit Budget Prov                      (154,000)                    (154,000)
              Total Expenditures             0      (573,000)        60,000       (513,000)
                                                                                      10
       TempBudg Transformation
       Future State Equivalents in CalPlan and BFS Actuals Ledger

   CURRENT STATE                       FUTURE STATE
TempBudg Components               New Component Locations


    Budgeting for
      Revenue
    and Expense

  Intrafund Resource
       Transfers
    within same fund
     by DeptID, CF1

  Interfund Resource
       Transfers
    between 2 funds


    Carryforward
       July 1



                            CalPlan              BFS Actuals Ledger11
       TempBudg Transformation
       Future State Equivalents in CalPlan and BFS Actuals Ledger

   CURRENT STATE                         FUTURE STATE
TempBudg Components                 New Component Locations


    Budgeting for          Budgeting for
      Revenue                Revenue
    and Expense            and Expense

  Intrafund Resource                           Intrafund Resource
                               PLAN for NEW!
       Transfers                                    Transfers        New Account
                         Intrafund Resource
    within same fund                             within same fund    Series 7xxxx
                              Transfers
     by DeptID, CF1                               by DeptID, CF1
                                        NEW!                         Fund Balance
  Interfund Resource           PLAN for        Interfund Resource   Accts 3xxxx at
       Transfers         Interfund Resource         Transfers       Dept chartstring
    between 2 funds           Transfers          between 2 funds         level

                            PLAN for NEW!
    Carryforward                                 Carryforward        Fund Balance
                           Carryforward
       July 1                                       July 1            Acct 30000
                              July 1



                             CalPlan                 BFS Actuals Ledger12
         How Will CalPlanning Help?
                                                                   FUTURE STATE
   CalPlanning will allow us to have a consolidated plan
    for all four aspects of our financial information:              Budgeting for
     1. Plan for External Revenues                                    Revenue
                                                                    and Expense
     2. Plan for Internal Intrafund Resource (within a fund)
          Transfers
                                                                        PLAN for NEW!
              Between the center and the divisions               Intrafund Resource
              Between divisions                                       Transfers

              Between departments within a division                             NEW!
                                                                        PLAN for
     3. Planned Expenditures                                      Interfund Resource
     4. Plan for interfund (between different funds)                   Transfers
          transfers that finance plant or make an investment
                                                                     PLAN for NEW!
   We will be able to establish multiple versions of our           Carryforward
    plans (initial, working, in-year forecasts) that we will be        July 1
    able to compare with prior year plans and actual results

                                                                      CalPlan

                                                                                    13
     Give Me a Sign!

   BFS General Ledger
Perm/TempBudg & Actuals   CalPlanning




                                        14
BAIRS Reporting will be different from…




                                          15
…CalPlanning Reporting




                         16
      A few more definitions…

 Forecast – A prediction of anticipated results for a
  reporting period (i.e., annual fiscal year), based on period-
  to-date results.
 Encumbrance is a way of showing that some portion of an
  approved spending limit has a “formal” commitment
  associated with it
   – “soft liens”
   – approved purchase orders
   The encumbrance is meant to prevent further spending or
   assignment of additional commitments that would lead to a
   deficit
Encumbrance is not a forecast; though it can indicate a planned
expenditure that might inform a forecast.
                                                                  17
             CalPlanning Chart of Accounts - Account

   CalPlanning Account Hierarchy allows for
    strategic budgeting, and aligns with the
    Statement of Revenues, Expenses, and
    Changes in Net Assets (SRECNA)
     –   Room and Board: Moved under Auxiliary
     –   Other Employee Comp: Moved under Benefits
     –   Financial Aid or Scholarships and Fellowships:
         Moved from Comp to Non-Comp
     –   New parents under Staff Salaries: Career, Contract,
         Casual

   Summary values were included, as well as
    some level-0 accounts that may be
    necessary for budgeting at individual level
   Transfer accounts have been added to the
    hierarchy
   Statistical accounts have been created for
    calculations
                                                               18
       CalPlanning Chart of Accounts - Fund

 The CalPlan Fund Hierarchy includes
  categories based on fund group
 The goal of analysis was to allow units
  to plan to specific funds that represent
  at least 5% of their overall ‘Current
  Funds’ financial activity within a fiscal
  year
 Planning summary values have been
  included in the hierarchy to allow for
  budgeting where specific COA values
  were not included
 All of the BFS funds have a home in
  this hierarchy in CalRptg


                                              19
       CalPlanning Chart of Accounts - Department


 The CalPlan Entity Hierarchy has been
  adjusted to align the meaning of the
  various levels for reporting
 The Outreach Teams will be working on
 For the Phase 2 Go-Live, the top three
  levels of the Dept ID hierarchy were
  modified in the CalPlan Hierarchy




                                                    20
       CalPlanning Chart of Accounts – Program Code

   Program code will just not be used in Planning, it isn’t going
   away…it will still be in actuals.


 As of July 1, 2012, the program code chartfield will not be required for
  budgeting current, non-sponsored funds (Contracts and Grants)
 The program code will continue to be used on sponsored budgets in
  the temporary budget ledger and on all expense transactions in the
  actuals ledger
 If you have some unique uses of the program code in (segregating
  certain central funding, etc.), please notify your CalPlanning Outreach
  contact.
 The team has developed a number of suggested standards that may
  help with the transition

                                                                        21
      CalPlanning Chart of Accounts – Chartfield 1

 The CalPlan set of chartfield
  1 has been scaled for
  planning
 A “Shared Chartfield 1”
  parent was created for cross
  campus activities (Faculty
  Startup, Faculty Retention,
  Commencement, etc.)
 A number of project-like        .
                                  .
                                  .
  Chartfield 2 values have been
  migrated to Chartfield 1 to
  allow for planning

                                                     22
             Getting to the Bottom Line in the Operating Budget…

Beginning Balance +
                           Beginning Balances from 2011-12 Forecast

                           Revenues are external income (e.g., Gifts, Grants,
             + Revenues    Student Fees, Sales and Services)

                           Transfers are flows of money within the University
      +/- Resource
        Transfers          Expenses are familiar to all of us. If a check gets
                           cut from the Regents to an outside party (and
                           employee or supplier) it’s generally an expense.
             - Expenses
                           Change in Fund Balances in-year flows to/from
                           plant and endowment/investments. Does not
                           impact net operating results.
     +/- Change in
     Fund Balance
                           Ending Balances in the Operating Budget are the
                           sum of all the activity above. This is the expected
                           balance on 6/30/13.
 = Ending Balance                                                           23
Statement of Revenues, Expenses, and Change
in Net Assets (SRECNA)




                                        24
                         Phased Process of Budgeting Transformation


We know the Operating Budget will not be perfect on day 1 (we imagine there
will be a larger variance between the budget and actuals), we will use this next
year to understand the numbers and refine the budget so it is more in line with
our strategy and actuals

                                       Budget Predictability Range
     Positive Variance




                            Actual
                          Financial
     Negative Variance




                         Performance




                                    2012-13             2013-14            2014-15             2015-16
                           Time
                                  Operating Budget   Position Info, Strategic Allocation, Multi-Year Planning, etc.


                                                                                                                      25
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

6    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

7    What’s Next?                                           26
Planning for Revenue and Expenses




                Revenue


           Expense




                                    27
SRECNA - Revenue and Expenses




                                28
CalPlan – Revenue and Expenses




                                 29
      Planning for Revenue and Expenses -
      Concept
 Plan all revenues and expenses
 Some planning done at summary level but all are included
   – Different account roll-ups for better summary reporting (same
     underlying accounts)
   – Some summary-level accounts
   – Some funds planned at “bucket” level (more later)
 Plan for revenues you expect, not just what you have in
  hand (e.g., gifts)
 Plans are just plans
 Uses positives and negatives not debits and credits
   – Revenues: Reversed signage from BFS actuals
   – Expense: Same signage as BFS actuals

                                                                     30
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

6    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

7    What’s Next?                                           31
Planning for Resource Transfers



                    Revenue



               Resource
               Transfers



                    Expense




                                  32
SRECNA – Operating Transfers




                               33
            Planning for Transfers

Four Planning Areas:
  1. Campus Support
    •   From Chancellor/EVCP (71xxx)
    •   Viewable, locked for editing

  2. Campus-wide Distributions
    •   Plan funds expected from HR, summer
        session, COR awards, etc. here (731xx)
    •   The few “campuswide distributors” will plan
        outgoing funds here

  3. To/From Dean/AVC Office
    •   Internal transfers from Dean/AVC to
        subsidiary units (741xx)
    •   Not required for May 18th budget submission

  4. General Transfers
    •   Plan inter-divisional transfers (732xx) and
        inter-campus transfers (72xxx) here



 For the FY12-13 Budget Submission, you only need to plan for material resource
 transfers into and out of your division (items #2 and #4) for May 18th!      34
       Visualizing The Intrafund Transfer Account
       Hierarchy

Not Required
for May 18th                                  CBO Plans
Submission!
                                             Division Plans

                                                 Division Plans




                                                          35
       FY12-13 Operating Transfers: Journal Example

   In Actuals Ledger
   Same account (73310 – Summer Session/UNEX Rev Share)
   Same fund (20095)
   Different DeptIDs
    – FROM: 25650 (debit)
    – TO:  11970 (credit)
 No program code
 Chartfield 1 and/or chartfuield 2 as needed




                                                           36
       Transfers Concepts

 Intra-fund resource transfer
 NOT cost transfer nor revenue, fund balance or inter-fund transfers
 Uses new account series, 7xxxx
   – New accounts and hierarchy make better reporting of transfer
      activity
 Replaces much of activity in 58000 series
 Accounts reflect flow of activity, do not store balances
   – Looks like revenue, you do not need to “move” or rebudget to an
      expense account
 Planning for transfers is not the same as the actual BFS journal
   – Uses positive/negative not DR/CR
   – Does not require both “to” and “from”
         Sometimes, you will plan both sides, other times you cannot
          (e.g., transferring out of your division) and it’s ok
                                                                        37
      Transfers Concepts - Continued

 Seeding
   – System will seed some initial values including the download of the
     permbudg (more later)
   – Additional seeding by the budget office will input estimates you
     should expect to receive in the “Campus Support” section
        Estimates are just estimates; Good for planning purposes
        Benefit of CalPlanning is decoupling of plans from actual transfers, unlike
         tempbudg
   – Note that Dean/AVC does similar in its internal divisional transfers
        Access is top-down. “Higher” orgs in tree can plan for “lower” orgs
        Access in NOT lateral (e.g., cannot plan for another division)

 Order of Entry
   – Campus -> Division -> Departments
   – Overwriting the seeded values is possible in some instances
   – Plan accordingly (Overwriting is sometimes okay, develop internal
     policy)                                                        38
Exercise 1:
 Transfers


              39
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

5    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

6    What’s Next?
                                                            40
Planning Changes in Fund Balance



                       Revenue




                Resource
                Transfers




                       Expense




                Changes in
               Fund Balance




                                   41
SRECNA – Changes in Fund Balance & Beginning Fund
Balance (prior year carryforward)




                                              42
      CalPlan – Beginning Fund Balance


 Beginning Fund Balance (aka, Prior Year Carryforward)
   – Account 30000 in actuals
   – Actual beginning fund balance by department,
     chartfield1 and fund, based on same logic in
     TempBudg 58100 carryfoward
   – Replaces 58100 in most cases




                                                          43
        Changes in Fund Balance - Concepts

Changes in Fund Balance
 Inter-fund transfers occur
  in the 3xxxx series
 Few departments
  prepare these journals
 NOT a fund swap
 Examples include:
  To/From Loan, To/From
  Plant, To/From Endow
  FFE




                                             44
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

6    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

7    What’s Next?                                           45
Planning for Contract & Grant Funds



             Revenue          Revenue



        Resource         Resource
        Transfers        Transfers



             Expense          Expense



         Fund             Fund
        Balance          Balance




                                        46
SRECNA – Contract & Grant Funds




                                  47
      The Two Worlds of Contracts & Grants


                                  CalPlan
                                  (Summary)




Tempbudg
(Budget of Record)




                                              48
       Contracts & Grants in Planning - Concept

 Tempbudg continues as the budget of record for C&G
 Also in CalPlanning, but only at a summary level
 Easy synthesis of two worlds
   – “Fiscalized” C&G seeded into CalPlanning so no duplicate data entry in
     most cases
   – Reports show all actual revenues, expenses and fund balances
        Including C&G
   – C&G revenue now visible as revenue
        Used to need tempbudg to reflect C&G “revenue”
 Contracts & Grants Temp Budgets are loaded into CalRptg on a
  monthly basis, along with actuals, so two types of reporting are
  possible:
   – Temp Budget to Actuals for individual awards, or
   – Operating Budget for planning level fund against individual fund expenses

                                                                              49
    Agenda

1    Budget, Forecasts, and a New Tool, Oh My!
     • What is CalPlanning?
     • Budgeting in the Current World
     • Budgeting and Planning with CalPlanning

2    Planning for Revenues & Expenses

3    Planning for Resource Transfers

4    Planning for Changes to Fund Balances

5    Planning at the Summary Level for Contracts & Grants

6    Putting it All Together: The FY12-13 Budget Process
     • Divisional FY11-12 Forecast
     • Divisional FY12-13 Operating Budget
     • Budget Narrative

7    What’s Next?                                           50
             Getting to the Bottom Line in the Operating Budget…

Beginning Balance +
                           Beginning Balances from 2011-12 Forecast

                           Revenues are external income (e.g., Gifts, Grants,
             + Revenues    Student Fees, Sales and Services)

                           Transfers are flows of money within the University
      +/- Resource
        Transfers          Expenses are familiar to all of us. If a check gets
                           cut from the Regents to an outside party (and
                           employee or supplier) it’s generally an expense.
             - Expenses
                           Change in Fund Balances in-year flows to/from
                           plant and endowment/investments. Do not impact
                           net operating results.
     +/- Change in
     Fund Balance
                           Ending Balances in the Operating Budget are the
                           sum of all the activity above. This is the expected
                           balance on 6/30/13.
 = Ending Balance                                                           51
      Calendar for 2012-13 Budget Process



FEB              MAR             APR             MAY              JUN                  JUL


                                   CalPlanning training
  Chancellor’s
                  Finance
   budget call
                  Summit           Units refine budgets
     letter

                                          Outreach Support


                            CalPlanning                Submit final
                              Go-Live                  budgets to                 Consolidated
                                                        campus                      Campus
         Start of VC/EVCP                                                           budget
         budget planning
            processes                                                   Cabinet
                                                                        Retreat




                                                                                        52
            Four Components of the Budget Process

                          Budget Development                                        Budget Oversight




                                                                                      Budget to
   Forecast           Operating               Budget             Budget                 Actual
                       Budget                Narrative           Hearing              Variance
                                                                                       Analysis



Seeds FY13        School, College, or     Write your strategy   Discuss financial     Monthly, quarterly,
Operating Budget  Division creates plan   for FY13              position and          or bi-annual
                  for Revenues,           Discussed during      narrative             variance analysis
Update Mar-Jun    Expenses, and           Budget Hearings
FY12 Revenues and Transfers for FY13
Expenses




                                                                                                            53
          Where Do I Use Cal Planning?




You will use CalPlanning to create two
division level Projections:
   A division-level 2011-12 Forecast of
    year-end fund balances.
   A divisional-level 2012-13 Operating
    Budget and SRECNA report.




                                           54
FY11-12 FORECAST SEEDING




                           55
Detailed Walkthrough

OPERATING BUDGET




                       56
        Budget Narrative




Academic divisions and VC control
units write the budget narrative
 Program Narrative
 Consolidated Budget Narrative
 Capital Plan Narrative
 Financial Worksheet
 Forward Development (EVCP)




                                    57
       Four Components of the Narrative
The purpose of the narrative submission is to provide your unit’s program
narrative or strategy and link it with the numbers from your budget submission.




                                                                              58
Financial Worksheet

Financial Worksheet

Please report on the following key elements of financial information from your CalPlan budget using
the following two SCRECNA reports (i.e., statements of revenue, expenses, and change in net assets)
from the CalPlan – Task List – 2012-13: (1) Task 4.2 SRECNA forecast vs Op Budget Variance and (2)
Task 4.3 SCRECNA Forecast vs Op Budget by Fund Group.

   1. The 2011-12 projected Choose an item for my unit is $XXX million.

   2. The 2012-13 projected Choose an item for my unit is $XXX million.

   3. Total combined Revenues and Resource Transfers in my unit are projected to be $XXX million
      in 2011-12, and to Choose an item by X% to $YYY million in 2012-13.

   4. Total Expenses in my unit are projected to be $XXX million in 2011-12, and to Choose an item
      by X% to $YYY million in 2012-13.

   5. The percentage of my unit’s expenses projected to be allocated to “Unrestricted” funds will
      Choose an item from X% in 2011-12 to Y% in 2012-13.

   6. The 2011-12 projected Ending Fund Balance in Restricted funds for my unit is $XXX million.

   7. The 2011-12 projected Ending Fund Balance in Unrestricted funds for my unit is $XXX million.

   8. The 2012-13 projected Ending Fund Balance in Restricted funds for my unit is $XXX million.

   9. The 2012-13 projected Ending Fund Balance in Unrestricted funds for my unit is $XXX million.
                                                                                                      59
CalPlanning Supports the Financial Worksheet




                                  3            3




                   1        4    2             4




                                                   60
CalPlanning Supports the Financial Worksheet




                                5              5




                    7     6          9     8
                                                   61
     Exercise 4: Budget Narrative

               Answering Key Questions for the Narrative


Review the sample “School of Aeronautics” budget narrative


Complete the Checklist for your Division
    Review your readiness to answer the questions
    Determine who can provide additional information


Discuss your initiatives, and challenges:
    Individual writing—use the space provided to write down some of your
     initiatives and foreseeable challenges.
    As a group at your table share some of your initiatives and foreseeable
     challenges


                                                                          62
     Budget Hearing




April 16-May 18: EVCP Budget
Hearings with each School, College,
and Division

Mid-May: Chancellor Budget Hearings
with VC Control Units




                                      63
         Expectations for your Budget Hearing


Minimum Requirements
   Prepare draft of Program Narrative
     – Highlight issues for discussion
     – Any new requests for Forward Development section?
   From CalPlanning, review and print the two prepared SRECNA reports which
    will contain your initial, seeded operating budget estimates as they stand
    before you have made any changes*


If Scheduling Permits
   Attend CalPlanning trainings and unit working session prior to your Budget
    Hearing.
   Modify the seeded Operating Budget for your unit, so that the DEAN/VC
    LEVEL operating budget reflects a good budget estimate for the coming year.
*These reports can be provided to you if you require them before you have received the
CalPlanning training. Your unit will be assigned an outreach contact by Tue Mar 27 – this
person will be able to coordinate your request
                                                                                            64
        Target Requirements for May 18, 2012


 Modify the seeded Operating Budget for your unit so that
  the DEAN/VC LEVEL operating budget reflects a good
  budget estimate for the coming year
 Submit final narrative submission
   –   Program/Strategy Narrative
   –   Budget Section
   –   Capital Planning (if applicable)
   –   Financial Worksheet
   –   Optional - Forward Development




                                                         65
      But Wait, There’s More!


 The 2012-13 Budget Process requirements only scratch
  the surface of what’s possible with Cal Planning.

 Units will be able to refine and improve their budgets even
  after May 18th, in preparation for quarterly reviews during
  2012-13.

 After May 18th, and as time allows, build out your budget in
  more detail, adding department level information where
  possible.

 Prepare for Q1 Budget Revision in October
                                                           66
Help is Available!




                     67
       What to Expect at Year-End

 Fiscal Close will be the same as in previous years.
 Deficit Process will work the same as last year.
   – Call for deficit waivers will be separate from budget call.
   – That said if you expect to have a large deficit, please do mention it
     in your budget hearing.


 Reappropriations – Balance-forward calculations will be
  the same as always, but reappropriations (or
  carryforwards) will be loaded to acct 30000 in actuals
  instead of account 58100 in tempbudg.
 July Adjusted Budget – This will work differently next
  year. Amounts promised in the Permbudg will be
  transferred in new transfer accounts in the actuals ledger.
  See transfers information for a discussion of the details.
                                                                        68
Appendix



           69
Crosswalk: BFS Ledgers to Future BFS Actuals
CROSSWALK FROM CURRENT BFS LEDGERS TO FUTURE BFS ACTUALS
Sample Division - All Funds - All revenues and Expenditures YTD
Summary Report by Account as of 2/29/12


                                                       BFS - CURRENT STATE                 BFS - FUTURE STATE
                                          TempBudg             Actuals       Balance              Actuals

Revenue (All 4xxxx)                        1,200,000          (700,000)        500,000               (700,000)

Intrafund Transfers (All 7xxxx)                                                                   (14,100,000) =a-b-c

Expenditures
50-53XXX Wages and benefits               (14,100,000)        8,300,000      (5,800,000)            8,300,000
55XXX    General Supplies                  (1,000,000)          800,000        (200,000)              800,000
573XX    Miscellaneous                       (600,000)          300,000        (300,000)              300,000
58000    Unallocated                          500,000                           500,000
58100    Reappropriation                     (300,000) b                       (300,000)

Total Expenditures                        (15,500,000)        9,400,000      (6,100,000)            9,400,000

Net from Operations                                                                                (5,400,000)

                                                                                                                      From
Fund Balance - Beginning of Year 300xx)                                                              (300,000)      a na lysis
                                                                                                                  (s ee * note
                                                                                                                     bel ow)
Net from Operations                                                                                (5,400,000)
Non-Operating Transfers (All 3xxxx)                                                                   100,000 c

Fund Balance - as of Feb 29, 2012         (14,300,000) a      8,700,000      (5,600,000)           (5,600,000)

* From analysis (Embedded in temp budget column, most likely in a/c 58000 unallocated)

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