Operating Budget Policy by wji12956

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									       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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