University Operating Budget Guidelines by DerekSchouman

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									                                               University Operating Budget Guidelines
                                                                   Fiscal Year 2010 Operating Budget




                                       Budget Process Summary

Welcome to the FY10 budget season. We are dedicated to making this budget process run as smoothly as
possible for you.

You can access budget information on the University CFS Budget Website:
http://ozone.ohsu.edu/financial/budget/index.shtml

Operating budgets are to be completed and submitted to the Vice-Presidents and/or Deans by May 1,
2009 and to Central Financial Services no later than May 7, 2009.


                             New Items for the Fiscal Year 2010 Budget

New for FY10 the UMG environment has been removed and replaced with FPP funds. The fund
sequence remains the same, 5700-5999, but starting this year these funds are part of the University. The
assessments for the fund groups remain the same for FY10. If you have any questions on your
assessments you can contact either Jeff Hanson (503.494.4067 / hansonje@ohsu.edu) or Allen
Metzenberg (503.494.8783 / metzenbe@ohsu.edu).

                           What Budgeting Resources are Available to You

Your budget resources consist of this University Operating Budget Guidelines, FY10 University Budget
Calendar-Key Dates, FY10 Capital Budget Guidelines, FY10 External Capital ROI Template, Department
Contact List by Analyst, and the FY10 Operating Budget Quick Guide.


                             What You Need to Budget – OHSU Funds

You are expected to budget all revenues and expenses related to operations for all unrestricted fund-org
combinations and various Restricted accounts. These include Oregon Opportunity (Funds 0901 thru
0999), Endowments (Funds 4000 thru 4499), Loans and Scholarships (Funds 4500 thru 4999), Restricted
Gifts (Funds 5000 thru 5599), and Faculty Practice Plan [FPP] (Funds 5700-5999). All valid fund-org
combinations are required to be budgeted.

We recognize that the Oracle system may generate a fund-org combination that is not valid (i.e., another
department’s fund with your org). Please contact your budget analyst if any invalid fund-org
combinations appear in your budget for further instruction on how to handle these accounts.




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                                                University Operating Budget Guidelines
                                                                     Fiscal Year 2010 Operating Budget




You will need to budget individual line items with seasonality if they are not going to be straight-lined over
the 12 months. We will be reviewing this against actuals over the next year as part of our variance
reporting analysis. Your careful attention to seasonality will make KBace Variance Reporting more
effective.


                   Budget Assumptions – University Operating Unrestricted Only

Tuition Assessment
For FY 10, this assessment is 30%. This is automatically budgeted to object code 4203. Overall, the
Schools should therefore assume that their net tuition revenue would be 70% of their budgeted gross
tuition revenue. UBS will automatically calculate this in the impacted fund orgs. For more information
about this assessment, see the Tuition Admin Allocation document on the budget website.

State Appropriations
Those departments that receive State Appropriations monies should be budgeted at the level indicated by
your Vice President.

Salaries - Unclassified
There is no salary increase for unclassified employees (0% growth) due to the current economic downturn
expense reduction plan. Unclassified pay should be budgeted in the object code range 511x.

OPE UPP contributions- Unclassified
The contribution has been changed from 12% to 10% for unclassified employees who have UPP
elections. UBS will automatically calculate this as part of the employee OPE costs.

Salaries – Classified
The AFSCME contract is still under negotiation, therefore the cost of living increase for the FY10 budget
targets was projected at 0%. Within KBace there is a 3% “Across the Board” increase set to begin August
1, 2009, this is a placeholder based on the current AFSCME contract that expires June 30, 2009. Please
put an appropriate credit amount into 6599-990 to adjust for this difference and balance your budget. We
will send updated numbers after negotiations have been finalized. AFSCME pay should be budgeted in
the object code range 512x. ONA pay should be budgeted in the object code range 513x.

            Foundation Direct Activity Special Instructions and Assumptions
Definition: Foundation activity includes gift and non-gift deposits to foundation accounts, endowment
spending distributions credited to foundation accounts, items paid directly to vendors through the
foundation's accounts payable process, IBS and labor charges posted directly to foundation accounts,
payments to OHSU to reimburse expenses and transfers between Foundation funds.


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                                                 University Operating Budget Guidelines
                                                                      Fiscal Year 2010 Operating Budget




The OHSU Foundation would like your assistance in providing budgets of current funds (expendable
funds) revenue and expenses for FY09/10. OHSU’s Central Financial Services has incorporated
Foundation funds in their UBS budget. Foundation funded IBS and labor distribution charges will post
directly to foundation funds and should be budgeted on the Foundation fund. Foundation funded capital
equipment can either be purchased through an OHSU buyer and charged directly to a foundation fund or
be purchased through the Foundation buyer.

We understand that the Foundation budgets are estimates of expected activity and actual activity may vary.
The budget is only a plan, departments will not be required to spend to the level indicated – but the
budget should accurately reflect anticipated usage of Foundation funds. Please budget amounts consistent
with departmental goals and plans.

                                                  Revenue

Gift Revenue
Budget gift revenue to object codes in the range 4401–4524. Gift revenue is no longer subject to a 3%
gift retention fee, so the full amount of the gift will be credited to your fund. Budget for gifts to current
funds based on expected pledge payments and new gifts. Adjust the seasonality to correctly reflect the
month in which the revenue will be received.

Non-gift Revenue
The most common non-gift sources of revenue are: 4602 – Sales and Services, 4609 – Advertising
Income, 4631 – Conference Income and 4632 – Banquet Income. Adjust the seasonality to correctly
reflect the month in which the revenue will be received.

Endowment Spending Distribution
Endowment income accounts are credited monthly with authorized spending distributions. In FY 09/10
the Foundation’s endowment spending policy allows for spending 4.7% of a 3-year moving average of the
endowment value. OHSU Foundation will estimate this amount for all endowments and pre-load the
monthly amounts in object code 7362 (Interest and Dividend, Endowment) of the endowment income
account. Seasonality will reflect the Foundation procedure which distributes income evenly throughout
the year on a monthly basis. UBS will not allow you to make changes to this object code. If significant
new gifts to the endowment are anticipated in FY 09/10 and are expected to have a budget impact, please
contact Tracy Tucker at tuckert@ohsu.edu to make changes to the spending distribution. Do not budget
to any of the other investment income object codes (73XX, 74XX, 75XX) even if you note that they have
current year actual entries.




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                                               University Operating Budget Guidelines
                                                                   Fiscal Year 2010 Operating Budget




                                                Expenses

Payroll
Foundation funded payroll should be budgeted on the Foundation fund in the Payroll section.

Services and supplies
Non-payroll expenses are budgeted in the General Ledger section. These expenses may be budgeted by
specific object codes, or by using object code 6701, Total Direct Expense, to budget at a summary level.
As with revenue, adjust the seasonality to correctly reflect the month in which the expenses will be
incurred.

Transfers between the Foundations and OHSU
Object code 6450 (Transfers to OHSU) should include any other inter-company transfers approved by
Central Financial Services and OHSU Foundation or Doernbecher Children’s Hospital Foundation.
Adjust the seasonality to reflect the month the transfer is anticipated.

Transfers between Foundation accounts
Use object code 4974, FDN Income/Expense Transfer, for transfers between Foundation funds. Enter a
positive number in the fund receiving the transfer. Enter a corresponding negative number in the fund
from which the funds are transferred. Adjust the seasonality to reflect the month the transfer is
anticipated.

Transfers between the Foundation FPPr and OHSU SoM FPP funds
Object code 6705 is for transfer from FPP to FPPr.
Object code 4887 is for transfers from FPPr to FPP.
Object code 4875 is for transfers from FPP to another OHSU fund.


                                             Fund Balance

The Budget Summary shows total budgeted operating revenue, operating expense, operating net, capital
expense, and total budget. The Budget Summary section also includes fund balance information, such as
beginning balance 7/01/08, projected net, and projected fund balance 6/30/10. The 6/30/10 fund
balance must be a positive number.

For each budgeted fund, a current year year-to-date actual (CY YTD) total for each account string is
given. The projections column has been populated with an annualized amount based on the first four
months of actual activity (CY YTD divided by 4 and then multiplied by 12). This Projections column
represents an estimate of the total current year amount for each account string. Adjust projections
as necessary to reflect your estimated total year amounts for each account string.


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                                                 University Operating Budget Guidelines
                                                                       Fiscal Year 2010 Operating Budget




The total projected revenue and expenses from this Projections column is reflected in the balance section
of the Budget Summary on the left of the screen. It is the Projected Net amount, which is used to
calculate the 6/30/10 Projected Fund Balance.

Deficit Budgeting
Projected 6/30/10 fund balance should not be below zero. The system will allow you to save a budget
that is in a deficit. However, it will not allow the budget to be submitted until the deficits are resolved.
When the budget is submitted with a deficit in one or more funds, the budgeter will get a message
informing them the budget cannot be submitted and listing the funds that are showing a projected
6/30/10 balance that is below zero.

Further information about the budget can be retained by entering budget notes that are located at the end
of each object code line. Questions about budgeting for Foundation accounts can be directed to the
OHSU Foundation budget team: Garrett Morgan at 503-228-1730 or morgang@ohsu.edu and Tracy
Tucker at 503-220-8325 or tuckert@ohsu.edu




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                                                 University Operating Budget Guidelines
                                                                    Fiscal Year 2010 Operating Budget




                                     Additional Budget Information

Closing Accounts
If you identify any fund OR org that can be closed out, please review the following link for the proper
procedure. http://ozone.ohsu.edu/financial/accounting/pdf/COADisablingProcedures.pdf

You can always e-mail the glacct@ohsu.edu mailbox for any questions on what documentation or
requirements are needed to close a fund or an org.


What is Next in the OHSU Budget Process
Throughout the OHSU Central Financial Services review process, you will receive communications about
your OHSU budgets from the budget team to confirm the numbers in UBS. If something changes in
your department after you have submitted your budget, please contact us immediately so we can work
with you to update the information. It is very important that we are kept informed with all changes, as
decisions will be made based upon the information we receive.

Following approval of the FY 10 Budget at the June 2009 Board meeting, an e-mail will be sent out
notifying budgeters that they can print their final budgets out of UBS. The budgets will be posted into
Oracle as of July 1, 2009.

Please do not hesitate to contact any budget team member if you have questions during the budget
process. Their contact information is as follows:

University Budget Contacts:
Kerry Bierman, Director, Budget & Resource Management – 503.494.7941
Donna Mathieson, Operating Budget and Five-Year Planning Supervisor – 503.494.8894
Katie Crocker, Senior Financial Analyst – 503.494.6747
Roy Rotherham, Senior Financial Analyst – 503.494.7776
Shawn Witkop, Financial Analyst – 503.494.4262
Gene Whiteley-Ross, Capital Budgets Manager – 503.494.7158

Foundation Budget Contacts:
Garrett Morgan, Controller – 503.228.1730
Tracy Tucker, Financial Systems Analyst – 503.220.8325




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