TEXAS TECH UNIVERSITY Office of the Senior Vice President for Administration and Finance Box 42006 Lubbock, Texas 79409-2006 (806) 742-4250 (806) 742-6600 (FAX) MEMORANDUM TO: Financial Managers FROM: Robert E. “Corky” Dragoo, Senior Vice President for Administration and Finance and Chief Operating Officer DATE: May 27, 2009 SUBJECT: FY 2010 Operating Budget Policy and Guidelines The goal of the FY 2010 Operating Budget is a budget that supports the TTU strategic plan and improves institutional efficiencies and effectiveness. The Board of Regents is scheduled to make decisions on tuition and fees for TTU for the 2009-2010 academic year at a called meeting after June 21, 2009. The FY 2010 budget will have minimal changes from the FY 2009 budget. You may, pending further information/instruction, increase the departmental request ONLY if you have previous written approvals from the appropriate Vice President, Dean, Provost or the President. Upon approval of the tuition and fee rates for the 2009-2010 academic year, further instructions may be issued for changes to resource allocations. The FY 2010 Budget Prep tools will be open to the users on June 8th. AFISM (Administration and Finance Information Systems Management) is providing training sessions for all users of the new Banner Budget Prep tools. Training is being coordinated at each Vice President and Provost level from May 26th to June 9th. If you will be a user of the system and have not had a class scheduled, please register for “Budget Prep Banner Style” in the AFISM Training website, http://www.depts.ttu.edu/afism/AFISMTraining/ClassCode.aspx. With the new system implementation and conversion, training is critical this year for ALL users and approvers in Budget Prep. FY 2010 Operating Budget Instructions Page 2 of 8 May 27, 2009 Following are key policy items to follow while processing your budgets: • All increases above base level funding (FY 2009 budget amount reflected in Budget Development, Adopted Budget column) must have prior written approval from the President, Provost or the appropriate Vice President. The following are examples of items that require written approval: new programmatic increases and revenue increases. New positions, promotions, salary adjustments, or equity increases must be processed within guidelines and approvals using the proper HR Banner Forms. Written approvals for programmatic or revenue increases should be sent to the Budget Office for Budget Analysts to cross-check approvals and funding levels. • The FY 2010 Operating Budget Schedule is as follows: Open web budget data to departments June 8th BOARD OF REGENTS CALLED MEETING After June 21st Budget requests due to Deans, Associate/Assistant VPs June 17th or Directors (VP/Provost area may set earlier date) Budget requests due to the President, Provost, June 24th Or the appropriate VPs (VP/Provost area may set earlier date) Budget requests due to Budget Office July 2nd Present Final Operating Budget to the Board of Regents August 6-7, 2009 The budget deadlines ensure that the FY 2010 Operating Budget will be completed timely to present for the approval of the TTUS Board of Regents. FY 2010 Operating Budget Instructions Page 3 of 8 May 27, 2009 The following guidelines are developed to assist you in the preparation of the FY 2010 Operating Budget. Your FOPs can be accessed from the Raiderlink website, in the A&F Work Tools tab for Budget Prep. The Adopted Budget column shows the FY 2009 original budget amounts adjusted by any permanent changes during the year. Initial Access to Salary Planner and Budget Prep is available through TeamApp by organization code. Access will be limited to three individuals per Organization. A video tutorial for Budget Prep Security Request is available under Budget Announcements in the A&F Work Tools Tab of the Raiderlink or at: http://www.depts.ttu.edu/afism/videoLibrary/index.asp under TeamApp. The Financial Manager for each organization must register individuals via the TEAM Application (TeamApp). All financial manager levels have the authority to grant access to Budget Prep. Further information will be provided in the Budget Prep AFISM training classes. Salary and Personnel Guidelines Merit Increase Policy - At this time, a merit increase policy has not been approved. Once the level of increase, if any, is approved, all departments will be notified accordingly and given appropriate instructions. Faculty • Faculty promotions approved by the Board of Regents will be entered by the HR and Budget Offices after Budget Development has been locked to the Budget office, and Salary Planner has been rolled into FY 2010 Budget Development. Individuals promoted from Assistant to Associate Professor will receive a $3,000 annual increase, from Associate Professor to Professor a $5,000 increase and promotions to Horn Professorship an $8,000 increase. These promotions are funded centrally. Budget the appropriate amount in code 6Z1, increasing the FOP’s total expense by the corresponding amount. • For new faculty positions, approval and funding from the Provost must be secured first. Non-Faculty • Pay Plan Adjustments - The FY 2010 pay plan for staff has minimal pay plan adjustments and includes the required Federal Minimum Wage increases. Human Resource Services department will notify affected departments. Adjustments have been uploaded into Salary Planner for affected individuals. For state FOPs, the total expense budget will increase for pay plan adjustments. For local FOPs adjust another code within the FOP to offset the pay plan increase. FY 2010 Operating Budget Instructions Page 4 of 8 May 27, 2009 • Staff Promotions – Promotions are to be made in accordance with OP 70.11 which requires that vacant staff positions be properly posted and filled through a competitive selection process. Exceptions require the President’s approval. Promotions will not be facilitated through Budget Prep. New Positions, Reclassifications, and Equity Increases • A Request for Approval and Review – New Position/Reclassification form with a Position Description Questionnaire (PDQ) must be submitted and approved by Human Resource Services and the appropriate VP or Provost before a new position can be entered in the Budget Prep System. • If the reclassification is to be implemented in FY 2009 and the correct and approved paper work was received by the Budget Office prior to May 1st, the reclassified position will be added to Salary Planner prior to release to departments. • If the reclassification is to be implemented in FY 2009 and the correct and approved paperwork was not received by the Budget Office prior to May 1st, the reclassified position will be added after FY 2010 is opened for processing. • If the reclassification is to be implemented in FY 2010 the reclassified position will be added after FY 2010 is opened for processing. • If an equity increase will be implemented in FY 2009 and the correct and approved paper work has already been received by the Budget Office prior to May 1st, the amount will be included in the Department Request column prior to release to departments, or added after the budget is locked back to the Budget Office (After July 2nd). • If approval for a request for a new position, reclassification, or equity increase had not been finalized before May 1st, please move the necessary funds to Payroll Contingency (code 6Z1) in anticipation of approval. • Correct and approved paper work for Sept. 1 new positions, reclassifications, equity increases, and Board approved faculty promotions received by the Budget Office by July 15th will be processed for the pay day that includes Sept. 1st (10/1/09 for exempt employees and 9/25/09 for non-exempt employees). Documentation received after July 15th may not be effective until later pay days. FY 2010 Operating Budget Instructions Page 5 of 8 May 27, 2009 Non-Exempt Employees Please consider the following policy change when estimating and requesting budgets for potential overtime costs for FY 2010: • All non-exempt employees will be paid overtime when either hours worked exceeds 40 hours in a work week or the combination of eligible leave and/or holiday pay hours worked exceeds 40 hours in a work week. • When over 40 hours in a week are worked, the amount of time over 40 hours will be paid at 1 ½ times the regular hourly rate. • When the combination of eligible leave, holiday pay, and hours worked exceeds 40 hours in a work week, but hours worked does not exceed 40 hours, the amount of time worked over 40 hours will be paid at the regular hourly rate. • Full time hourly employee estimated annual cost is calculated by multiplying the hourly rate by 2080 hours. Employment for less than full time should be prorated. The FTE portion of the hourly employee is not calculated in the budget process. • Student assistants minimum wage rate is $7.25 per hour, effective 7/16/09, the maximum is $8.25 per hour. Any pay increase above $8.25 per hour requires VP approval. • Graduate assistants minimum salary range for both master’s and doctoral students is $9.98 per hour effective 9/1/2009. • Further information will be provided in the Budget Prep AFISM training classes. Other Budget Guidelines Requests for New Programs • Departments must ensure that prior approval is granted from the appropriate Vice President, Dean, Provost or the President for new programs to be included in the FY 2010 budget. Requests for New FOPs • Upon proper approval for new programs or for realigning existing FOPs, complete and submit the appropriate Finance Forms, a Fund Request Form and/or a FOP Combination Form. Immediately upon entry into the system by Financial Accounting and Reporting, the FOP will be available for entry into Budget Prep (key in the new FOP number into Budget Development and Salary Planner, access/security will automatically follow the ORGN as assigned in TeamAPP). FY 2010 Operating Budget Instructions Page 6 of 8 May 27, 2009 TA/RA/GA/GPTI Waivers • Departments appointing Teaching Assistants, Research Assistants, Graduate Assistants or Graduate Part-Time Instructors on local or grant FOPs must fund the TA/RA/GA/GPTI waiver from that FOP. Budget an estimated waiver amount of $1,750 per student per term in budget pool code 7P0 on the local FOPs that you intend to pay the students. This amount is based on 9 semester credit hours. Split appointments may be divided proportionately. If a restricted account does not allow and expenditure for student waivers according to the grant restrictions, please budget the waiver expenditure in the local FOP that it will be charged to. Current Restricted Funds • The Budget Prep System includes fiscal year current restricted FOPs that are not presence/fund balance controlled or multi-year and are normally included in the budget book. These should be updated for the FY 2010 operating budget. • Multi-year and presence/fund balance controlled current restricted FOPs that have split appointments with budget book fiscal year FOPs should only update the employee detail in the Salary Planner tool. • If an appointment is split with an expired grant FOP and the new FOP is not available yet during the budget process, another FOP must be assigned to complete the employee’s FTE in Salary Planner. This FOP may be changed once the correct FOP and the funding have been secured, using Budget Forms, a Labor Redistribution Form for payrolls which have already been paid and/or Job Labor Distribution Change Form for future payrolls. Longevity • For each two years of service, employees receive longevity pay of $20 per month after the first 2 years of service. Incremental increases begin after 4 years of service. Please refer to OP 70.25 for further guidelines and the incremental payment schedule. • State FOPs for Special Items, Graduate Tuition, and local FOPs budget longevity cost within the FOP in budget pool code 6A5. • A longevity calculation report is available in the Budget Prep Report tools, Longevity Estimate, for each FOP that pays longevity. Fringe Benefits • Fringe benefits must be budgeted for all local FOPs in code 6B4. • A fringe benefit report is available in the Budget Prep Report tools, Fringe Benefits Estimate, for each local FOP. The social security covered wage that is subject to 7.65% has increased from $102,000 to $106,800. All wages over $106,800 are still subject to the 1.45% MedHi portion of the social security. FY 2010 Operating Budget Instructions Page 7 of 8 May 27, 2009 Contingency (Code 6Z1) • Funds should be set aside in code 6Z1 pending final approval on any reclassification, new position, or equity increase requests. • For local FOPs, funds should be set aside for possible merit distribution and the related fringes in FY 2010. This would only be done if a merit increase policy is approved. If a merit increase policy is not approved, the funds may be reallocated in the FOP budget codes in FY 2010. Unallocated Expense (Code 7Z6) • To cover unanticipated, non-salary expenses, funds are budgeted in code 7Z6. Shared Service Accounts (Shared with HSC) • In FY 2010, the same funding percentages between TTU and HSC should be used. Utilities • A $3.37 per square foot rate is to be used in estimating utility requirements for auxiliary units. This needs to be budgeted in the budget pool code 7D0. Further information will be provided in the Budget Prep AFISM training classes. Revenue Guidelines Revenue Estimates • Conservative estimates should be used in projecting revenue. Managers need to check the FOP’s total revenue that was generated in FY 2008 and current projected FY 2009 in order to project for FY 2010. If no revenue was generated in the last couple of years, please zero this FOP in your budget. The Budget Development tool includes a justification field to be completed for any FY 2010 revenue estimate that exceeds actual revenue received during FY 2008. • The revenue budget pool codes that were used in FY 2009 for the FOP’s actual revenue receipts in Banner should be used (5A1 Fees; 5G0 Interest Income; 5E0 Internal Sales and Service Other; 5N0 Other Revenues). FY 2010 Operating Budget Instructions Page 8 of 8 May 27, 2009 Transfers • Transfers will be updated in the Budget Transfer tool. • If the source of revenue is a transfer from another fund, the FOAP for the transfer in and the transfer out must be entered. • All permanent transfers on budget book FOPs, whether they are mandatory or non-mandatory transfers, should be listed in the Budget Transfer tool. • Further information will be provided in the Budget Prep AFISM training classes. Service Departments • Service FOPs should review carefully the rates they charge the departments so that all costs are recouped for the services rendered. Contact Information If you have any questions concerning these guidelines or if you need help in entering data in the Budget Prep tools, please refer to the Budget Contacts listed in the Budget Office website at http://www.ttuhsc.edu/Budget/ttu/Contacts/default.aspx or phone the Budget Office at 742-3228.
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