2016-17 Detailed Budget Process Overview
Presented by: Financial Services (FS) – Budget & Special Projects
January 2016
www.usask.ca/fsd
U of S Budget Process Overview
… Jun 15
July 15 …
Nov 15
Dec 15
Jan 16
Feb 16
Mar 16
Apr 16
May 16
Integrated Planning Process
Multi-Year Budget Framework
Resourcing Discussions 16/17
= PCIP approval
= Board approval
Detailed Budget Process (including final resourcing decisions) 16/17
Operations Forecast 17/18
Ongoing monitoring of: key assumptions, actual results
Jun 16
Jul 16
University Revenues
Central Operating Budget – Revenue Sources
Central Operating Budget Revenues:
Historic Range
Provincial operating grant (includes targeted funding)
65% - 70%
Tuition
20% - 25%
Interprovincial funding (WCVM)
4% - 6%
Investment income
2% - 5%
Other revenue
1% - 2%
Total
100%
Allocations from Central Operating Budget
Allocations from Central Operating Budget:
Historic Range
Funding envelopes to academic units*
60% - 65%
Funding envelopes to support units*
18% - 23%
Funding envelopes to institutional initiatives*
Institutional expenses paid centrally
Total
* Surpluses/deficits stay with the unit/initiative
5% - 7%
8% - 12%
100%
Expenses Covered – By Type
Expenses Covered by Operating Budget:
Historic Range
Salaries and benefits
60% - 65%
Targeted and directed initiatives
15% - 20%
Other non-salary operating expenses
10% - 15%
Utilities
3% - 5%
Additional pension and LTD payments
1% - 2%
Total
100%
University Revenues
Fund Structure: G, R, E
U of S
Consolidated
General
Fund
Operating Fund (1’s)
 Faculty, Admin & Support Salaries
 Utilities
 Support & Admin supply costs
 Pension & Benefit Plans
 Subsidiaries
Ancillary Fund (2’s)
 Book Store
 Food Services
 Residences
 Real Estate activity
 Sales of Utilities
Restricted
Fund
Student Financial Aid Fund (3’s)
 Scholarship support
Research Fund (4’s)
 Tri-Council funding
 Provincial funding
 Sponsored research
Capital Fund (8’s)
 Capital assets
 Major renovations
 Improvements to capital
Endowment
Fund
Permanent (6’s)
 Endowed chairs
Term (6’s)
 Limited term funds
Internally Restricted by the
Board (6’s)
 E.g., Foreman funds,
Greystone Heritage
Cons.
Operating Fund (1’s)
Op.
 Funds that primarily receive operating allocation
 1A – Central Institutional
 e.g. utilities, legal, insurance
 1B - Operating Budget
 e.g. college/unit budgets, accreditation
 Funds that are primarily funded from other sources (not operating
allocation)
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1C – Externally Funded
1D – Future Employee Benefits
1E – Non-Credit Instruction & Events
1F – Fee for Service
1G – Special Projects
1H – Subsidiaries
R
G
Anc.
E
Detailed Operating Budget - Objectives

Support University governance/stewardship

Mechanism for units to plan, manage, and monitor their financial resources

Includes operating allocation as determined from resourcing decisions
(envelope)

Developing realistic budgets to reflect the unit’s planned activities for the
upcoming year

Update the institutional multi-year budget framework

Update and apply consistent budgeting principles across units
Resourcing Decisions

Expenses do not drive operating allocation

Resource allocation and detailed budgeting are two separate, yet
interrelated, processes

Operating allocation provided as an “envelope” that supports the core
teaching and support activities of the unit

Changes to a unit’s envelope will be driven by strategic factors (e.g. activity
levels, achievement and alignment of priorities)
Resourcing Decisions

Historical Incremental

What is Responsibility Center Management (RCM)?



Responsibility Center Management
Aligns academic authority with financial responsibility (revenues, direct
and indirect costs)
Continuum of implementation possibilities
Determination of 16/17 envelopes

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PCIP will determine unit envelopes, considering strategic factors (e.g.
provincial grant, rolling forecasts, all resources available to the unit)
16/17 projected envelopes, which include PCIP-approved adjustments,
will be communicated in February 2016 (subject to PCIP and Board
approval in June 2016)
Summary of Key Dates
Important dates for the 16/17 Detailed Budgeting Process:
Position and Salary Verification Worksheets:

Issued to units on December 18, 2015

Due back to Budget Management on February 29, 2016
Budget Development (non-salary, revenues, recoveries, transfers):

Opened to units on December 18, 2015

Closes on February 29, 2016
Budget Upload into UniFi – June 2016 (after PCIP and Board approval)
Budget Packages to Units – July 2016
Detailed Budget Process
•
Key principles
•
Position and salary review
•
Non-salary budget modifications
•
Summarize final operating budget allocation envelope
•
Discussion
with
Present to PCIP / Board
Upload into UniFi / distribute operating budget notes to unit unit
as required
Subsequent budget adjustments
•
Quarterly variance analysis and forecasting
•
Prepare for next cycle
•
•
Detailed Budget – Key Principles

Comprehensive Budgeting



Units to determine which positions and non-salary expenses are funded from envelope
(operating allocation for core teaching and support activities)

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
Fund clean-up and simplification – contact Controller’s Office
Funds with accumulated surpluses – Reserves Policy
Does not have to be tied to prior year
Total envelope-funded expenses should align with total envelope available
All other expenses should be designated as non-base budget, fund balance, fee-forservice, recovery, grant, and other


Not funded from envelope (operating allocation)
Must budget associated revenue sources (e.g. grants/contracts, internal and external sale
of goods/services, interfund transfers) to offset these expenses
Comprehensive Budgeting
Comprehensive Budgeting requires ALL revenues, expenses, recoveries, and
interfund transfers (regardless of funding source) expected to be incurred
and/or generated to be budgeted in the relevant CFOAPAL where the
underlying activity occurs
Required for relevant:

1 Funds (Operating)

2 Funds (Ancillary)
Encouraged for relevant:

3 Funds (Student Financial Aid)

4 Funds (Research funds with NO grants attached)
Comprehensive Budgeting Resources:

Report 4992D or 4992S
Position Budgeting – Salary/Benefits

Available on FS – Budget & Special Projects website as
budgeting tools (http://www.usask.ca/fsd/colleges_depts_research/budgeting.php):

Salary parameters/full position costing
•

salaries with projected changes from collective agreements applied
Benefit parameters
•
projected benefit rates will be applied
Position and Salary Verification

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Starting point: About-US download (Nov) into MS Access salary budget database along
with known forecasted changes
Budget Management printed and distributed Position and Salary Verification
Worksheets for college/unit review on Dec 18:

Validate FTEs – including vacancies (TBA’s, turnover, attrition)

Validate CFOAPALs

Validate designated incumbent

Validate reasonableness of salary and benefits

Provide reasonable estimates of salary adjustments (current $1 placeholder)

Validate funding status (envelope vs. non-base budget, etc.)

Note any changes required and return to Budget Management (colleges/units
must submit EJSs to HR for actual changes) by February 29
College/unit can request electronic copy of worksheets for analysis/review (must
submit hardcopy version back to Budget Management)
Budget Management reviews and updates Access salary budget database
Discussion with units as required
Position and Salary Verification – Example 1
Non-Salary Budgeting

Budget Management rolls forward prior year budgets in
Self-Service Budget Development module as starting point

Can now modify operating allocation (59008) budget

Units enter changes to non-salary budgets

Discussion with units as required

Exceptions: units should not budget these accounts


57005 (spending allocation)
6xxxx (salary/benefits accounts)
Non-Salary Budgeting Reports

Allow units to review summarized non-salary budget (and
actual) information for current year (16/17) with prior year
comparatives (15/16)
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
Budget phases - 17DIR versus 16DIR
5007 - Budget Comparison by Fund
5008 - Budget Comparison by Organization
5009 - Budget Comparison by Account
Updated nightly until Budget Development closes (Board
approved final version is retained)
Operating Budget Envelope Summary

Summarizes total envelope funding for each unit

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
Starts with 15/16 original Board-approved envelope funding
Ongoing funding adjustments processed during 15/16
Further adjustments re: PCIP resourcing decisions
Final 16/17 envelope funding
Ultimately distributed to each unit as final record after
Board approval of the detailed budget is obtained
Envelope Funding (59008)

Account 59008 is used to provide envelope funding (operating
allocation) to units – breakdown by CFOAPAL

Actual operating allocation is provided on a monthly (1/12) basis;
in FAST, budget column shows full-year amount

No allocation is provided to central operating reserve funds (funds
starting with 100); only expense budget is shown
FAST View of Budget Upload – Example 2
Subsequent Budget Adjustments

Any adjustments to operating budgets made after the initial budget
upload into UniFi (after Board Approval)

Current year (temporary) budget effect only:
 Adjust budget using BD4

Permanent (ongoing) budget effect:
 Adjust budget using BD2

See links under “UniFi Training Materials” in FS – Budgeting page

Contact your Budget Management representative
What happens after?

Review of college/unit budgets – assess completeness and
reasonability

Quarterly reporting to Board – actual results versus budget

Forecasting results to year-end

Prevent year-end surprises and identify potential issues
(discussion with units as required)
FS Website (Budgeting page)

New budget cycle (16/17) communications will be posted on
Budgeting page as they are issued

Includes training materials and other budget-related resources

Link: www.usask.ca/fsd/colleges_depts_research/budgeting.php
Contact Information

Budget Management:

Piya Sen, Director 966-8756 piya.sen@usask.ca

Kris McWillie, Manager 966-2798 kris.mcwillie@usask.ca

Lucy Vuong, Analyst 966-2206 lucy.vuong@usask.ca

Lorraine Shantz, Analyst 966-1398 lorraine.shantz@usask.ca

Justine Marchuk, Analyst 966-4770 justine.marchuk@usask.ca

ICT Training:

Siu-Ching Fong, UniFi Training & Support
phone: 966-8783
email: unifisupport@usask.ca
Questions
or Comments?