Permanent
Budget
PPS
Budgeting
Provisions
Feb. 1, 2016
Benefits
Introductions
• Name
• Department
• Years of Service at UCSD
• Types of Funds Managed (State Funds, Indirect
Cost Recovery, Self-supporting, Private, etc.)
• Reason for Taking the Course
2
Agenda
• Permanent Budget vs. Operating Ledger
• How Permanent Budget Affects Current Year
• Budget Hierarchy and IFIS Chart of Accounts
Break
• Budget Queries and Tools
• Understanding Your Operating Budget
3
• The dictionary defines “budget” as a plan specifying
how resources (e.g. time and money) will be spent or
allocated during a particular period.
• Budgeting is a tool for
making resource allocation
decisions to implement
the strategic plan.
4
A budget aids in understanding resource availability
while:
- Measuring the effectiveness of resource management
- Ensuring accountability
A budget is a PLAN
not a financial accounting
of fund balances.
5
• Resources are limited
• Needs and wants are Unlimited
• Identification of needs
• Choose Among Need – Priorities
• Communicates Plan
• Equates plan in Financial Terms
• Permits Review and Re-evaluation of Program
• Control Device
6
Permanent Budget
Operating Ledger (CY Budget)
The approved annual budget for
the financial operation of the
University.
The University’s financial record of
expenditures for the current fiscal
year.
Includes:
Includes:
• Budgeted funds.
• Academic and Staff Full
Time Equivalents (FTE’s).
• July 1st permanent
budget appropriations.
• Unexpended balances or
deficits carried forward from
the previous year.
• Other one-time allocations.
7
Permanent Budget
Operating Ledger (CY Budget)
Funds that are expected to continue
from year to year, supporting ongoing
activities of the University.
University’s permanent budget plus
other special purpose funds that
come to the University for a
designated purpose.
Includes:
Includes:
• State and UC General (19900,
19933)
• Tuition and Fees (20000, 20224)
• IDC Recovery (05397, 07427,
69750)
• Endowments (3xxxx)
• Self-Supporting (6xxxx)
•
•
•
•
•
All Permanent Funds
Contracts
Grants
Gifts
Other Sources
8
FY 2013/14 Permanent Budget?
a.) $1.3B
b.) $934.9M
c.) $675.4M
Revenues to support the university’s Core activities in 2012?
a.) $1.78B
b.) $2.64B
c.) $3.42B
9
FISCAL YEAR 2010-11
Perm Budget
CY Ledger
--
$13,000
$150,000
--
Carryforward from prior year
July 1, 2011 Salary Allocation (Subs 0 & 1)
July 1, 2011 Non-Salary Allocation (Subs 2 – 8)
---
13,000
100,000
50,000
Total July 1, 2011 Balance
--
$ 163,000
-2,000
---
(15,000)
9 Months:
1,500
(145,000)
June 30, 2011 Balance (Carryforward)
June 30, 2011 Permanent Budget
FISCAL YEAR 2011-12
One-Time 10% Budget Reduction
October 1, 2011 - 2% Merit Increase
Total 2011-12 Actual Expenditures/Adjustments
June 30, 2011 Net Balance (Carry Forward)
June 30, 2011 Permanent Budget
12 Months:
$ 4,500
$152,000
FISCAL YEAR 2012-13
July 1, 2012 Salary Allocation (Subs 0 & 1)
July 1, 2012 Non-Salary Allocation (Subs 2 – 8)
--
102,000
50,000
Total July 1, 2012 Balance
--
$156,500
10
• The FTE represents the percentage of a position
which is permanently budgeted
100% permanent funding = 1.00 FTE
67% permanent funding = .67 FTE
• FTE’s are used to record both filled and vacant
positions (provisions)
• Reported to the State of California for both
Academic and Staff positions
11
• Used to report employee and provision detail for Sub 0
(Academic) and Sub 1 (Staff) permanent budgets.
• Includes permanent staffing detail from the Payroll
Personnel System (PPS) and the Provision Master File.
• Access to the permanent staffing system is limited to
the user’s PPS access as set by their DSA.
• Information contained in the permanent staffing
system is confidential.
12
Offered by UCSD Staff Education and Development
Topics Include:
• Overview of the Staffing List and how it is used for Systemwide
reporting.
•
How to use and balance your Staffing List.
•
How salary adjustments are funded.
• How to properly calculate and fund employee benefits related to
salary adjustments.
13
What is the difference between an Appropriation
and an Allocation?
• An APPROPRIATION is authorization to spend money if it is
available.
• An ALLOCATION is a promise that it is available. Funds are
released (allocated).
• It is not usual to APPROPRIATE money that will never actually be
allocated.
14
Governor & Legislature Approve
State Budget
UCOP
UCSD
Vice Chancellors
Departments
15
Recent Campus Priorities have included:
• Academic and Research Programs
• Energy/Utility Shortfalls
• Deferred Maintenance
• Information System Upgrades
16
Systemwide Administrative Unit (SAU)
Permanent
Operating
UCSD Fund Source (Local Programs)
0
--
UC Fund Source (Systemwide Programs)
5
--
General Campus
1
--
Health Sciences
2
--
Marine Sciences
3
--
Chancellor
A
AAAAAA
VC Academic Affairs
B
GAAAAA
VC Business Affairs
C
DAAAAA
VC Student Affairs
D
FAAAAA
VC Resource Management & Planning
E
CAAAAA
VC Health Sciences
L
JAAAAA
VC Marine Sciences
M
HAAAAA
Sub Campus Code
Vice Chancellor Area
17
Systemwide Administrative Unit
0 - Local Campus Activity
Sub Campus
1 - General Campus
Vice Chancellor
B - Academic Affairs
Organization
416220 – Chemistry & Biochemistry
18
Who is responsible for the activity?
An Organization is a 6 digit code representing a UCSD department or
operating unit.
• Organization codes “roll-up” to a single Vice Chancellor.
• Departments can have more than one organization
• 416220 = Chemistry & Biochemistry
• 721510 = Chem & Biochem Storehouse
• 776220 = Undergraduate Student Aid
19
What is the purpose of the funding?
Accounts are classified according to program, which corresponds to the
purpose for which costs are incurred.
Program Numbers Must Stay in the
Same Range
416220 – 400000 Instruction
416220 – 440000 Research
776220 – 770000 UG Student Aid
20
Program Range
Program Category
40xxxx
Instruction & Departmental Research
42xxxx
Teaching Hospitals
43xxxx
Academic Support
44 – 59xxxx
Organized Research
60xxxx
Libraries
61xxxx
University Extension
62xxxx
Campus Public Services
64xxxx
Operation & Maintenance of Plant
66xxxx
General Administration
68xxxx
Student Services
72xxxx
Institutional Support
76xxxx
Auxiliary Enterprises
77 – 79xxxx
80xxxx
Student Aid
Budgetary Provisions
21
Organization Range
Program Range
40xxxx
41xxxx
44 – 59xxxx
62xxxx
42xxxx
42xxxx
43xxxx
43xxxx
60xxxx
60xxxx
61xxxx
61xxxx
64xxxx
64xxxx
66xxxx
66xxxx
68xxxx
68xxxx
72xxxx
72xxxx
76xxxx
76xxxx
77 – 79xxxx
77 – 79xxxx
80xxxx
80xxxx
22
Fund Accounting
The convention by which resources for various purposes are classified, and
reported in accordance with regulations, restrictions, or limitations imposed by
sources outside the institution.
• Fund Restrictions
• Accountable to different parties
• Limit how much is spent
• Limit how funds are spent
• Funds Must Retain Their “Color”
•
Can’t cross fund colors (Don’t mix cans of paint)
23
24
25
What or who is SOFI?
Simplified Operating Funds Initiative
UC
Core
San
Diego
Core
26
What funds are In and what are Not
Simplified Operating Funds Initiative

The funds INCLUDED in the SOFI
represent approximately $1B of
unrestricted resources of the
campus
Contracts & Grants
Systemwide Tuition & Fees *
Private Gifts
University General Funds
Endowment Earnings
Research & Administrative
Overhead
Health System
Auxiliaries
Self-Supporting Enterprise
Investment Income
Lottery Funds
State Specific Research and Online Education Initiative
Student Services Fee Funds
Confidential ~ For Internal Planning Only
January 2016
The funds EXCLUDED from the SOFI
represent over 70% of campus
resources and are largely restricted
or designated
State General Funds *
TTO/Patent Income
*Specific
Exclusions

27
Simplified Operating Funds Initiative


UC San Diego’s Vision for the Future…
Core Campus Resources
In order to:

Improve financial management across the campus

Focus on outcomes rather than fund
color management

Optimize expenditures to meet the expectations
of the Governor, Legislature, students and other
stakeholders

Clearly depict the cost of fulfilling the campus
core mission, and the resources that support that
cost
UC San Diego will:


Pool “core” campus resources to support the core
academic investment and general institutional
operations
Continue fund accounting for revenue streams
People
Programs
Outcomes
Strategic Operating Plan
28
Confidential ~ For Internal Planning Only
January 2016
Simplified Operating Funds Initiative
How does SOFI simplify?
Confidential ~ For Internal Planning Only
January 2016
29
Simplified Operating Funds Initiative
How does SOFI simplify?
 Fulfilling Reporting Requirements
 The solution enabling response to stakeholder requests for fund‐
specific information is a distribution (“Mapping”) of SOF
expenses to the source funds


Benefits of Expenditure Mapping
»
Strategic spend using the “first‐dollar principle” ensures
full expense of General and Tuition funds in support of
the academic mission
»
Based in policy that articulates leadership’s plan and
priorities ahead of actual spend
»
Flexible and responsive to external requirements
»
Any carry‐forward balances are held in the most flexible
funds
Objectives Accomplished
»
Meet legislative, state, and other stakeholder reporting
requirements
»
Responsive to public perception and expectations
»
Manage specialized circumstances
30
Confidential ~ For Internal Planning Only
January 2016
SOF Expenditures
Mapping to Source Funds
1st: State &
UCGF,
Tuition &
Fee Funds
2nd: Various
Other Funds
Last: Flexible
Funds (e.g.
Carry $$ in
Opportunity,
STIP, etc.
Simplified Operating Funds Initiative

Detail of Funds Included in SOFI
Below is the list of source funds currently proposed to be included in SOFI
SOFI: Fund Inclusion
UC CORE FUND (number TBD)
Fund
Fund Title
CAMPUS OPERATING FUND (number TBD)
FGC
Fund
State General Funds
19900A
19900R
19904A
19905A
19906A
GENERAL FUND
GENERAL FUND-STATE AWARDS
S/A UTEP
S/A INSTRUCTIONAL EQUIPMENT REPL PR
S/A INSTR USE OF COMPUTER
401000
401000
401000
401000
401000
19923A
K-12 TEACHER DEVELOPMENT PROGRAMS
401000
STUDENT ACADEMIC PREPARATION PROGM
S/A SUBSTANCE ABUSE/SF
S/A UCOP ADMINSTRATIVE SYSTEMS
LEASE PURCHASE PAYMENTS
LEASE PURCHASE DEPT SAVINGS
401000
401000
401000
401000
401000
19969A
STATE FUND - STUDENT FINANCIAL AID
401000
19970A
19990A
SUBJECT MATTER PROJECTS
Y/E ADJ- GF
401000
401000
19924A-C
19925A
19926A
19946A
19948A
05397A
07427A
69750A
69753A
19933A
19934A
UC GEN FUND FROM ICR
STATE APPROP/STATE AGRMNT OVERHEAD
402000
402000
19940A
UC GENERAL FUND YE ADJ
402000
19941A
19942A
19943A
MISC UC GENERAL FUNDS
NON RESIDENT SUPP TUITION
NRT GRADUATE ACADEMIC
402000
402000
401000
67531A
68606A
68607A
75451A
407230
407220
410250
410210
ASSA ADMINISTRATIVE OVERHEAD
ENDOWMENT COST RECOVERY-REGENTS
ENDOWMENT COST RECOVERY-FOUNDATION
DIFF INC RESV - CENTRAL ADMIN
410290
410290
410290
411100
60500A
60502A
60502B
60505A
TECHNOLOGY TRANS COPYRIGHT INCOME
TECHNOLOGY TRANSFER PATENT INCOME
PATENT PROSECUTION
TTO MATERIAL TRANSFER
410290
410290
410290
410290
68800A
SYSTEMWIDE PATENT INCOME
410290
STIP/TRIP Income
403110
403120
403142
403145
403147
403152
403200
Total UC Core Fund
69899A
69900A
69901A
69903A
69987A
VC-DEVELOP & UNIV RELATIONS-STIP
STIP CLEARING
CHANCELLOR'S STIP FUND
2009/2010 5 YR STIP LOAN
VC-D&UR UC FDN STIP ASSESSMENT
410290
410290
410290
410290
410290
69988A
VC-D&UR REGENTS STIP ASSESSMENT
410290
69992A
69993A
69994A
69995A
69996A
99998A
VICE CHANCELLOR-MARINE SCIENCE-STIP
VICE CHANCELLOR-BUSINESS & FIN-STIP
VICE CHANCELLOR-ACADEM AFFAIRS-STIP
VICE CHANCELLOR-STUDENT AFFRS-STIP
VICE CHANCELLOR-RESOURCE MGMT-STIP
TRIP CLEARING UCOP DISTRIBUTIONS
410290
410290
410290
410290
410290
410290
Total Campus Operating Fund
still under review
Confidential ~ For Internal Planning Only
January 2016
EDUCATIONAL FUND
OPPORTUNITY FUND
CONTRACT AND GRANT ADMIN
NET-NEW INDIRECT COST RECOVERY
Patent Income
Systemwide Tuition & Fees
STUDENT SERVICE FEE
TUITION
PROF DEG SUPP TUITION
PROF DEG SUPP TUITION - MBA
SOP PROF DEGREE SUPP TUITION
IRPS PROF DEG SUPP TUITION
SUMMER SESSION-FISCAL YEAR
FGC
Internal Overhead Recovery
UCGF - Univ. generated General Funds
20000A
20095A
20226A
20225A
20224A
20223A-R
20290A
Fund Title
Research ICR
31
IFIS = Integrated Financial Information System
COA = Chart of Accounts
I = Index
A seven character code representing a FundOrg-Program combination.
F = Fund
Distinguishes the source of funding for an
activity or educational program from other
funding sources.
O = Organization
Identifies the department or office that is
financially responsible for the activity.
A = Account
Defines the type of transaction.
P = Program
Dictates the type of activity.
A = Activity
Reserved for future use.
L = Location
Identifies plant assets and related capital
expenditures.
32
Account Type (first digit)
•
Account numbers define the type of transaction (Revenue,
Expenditure, or Transfer). Account numbers are the only COA
element not “hard-coded” to an index number.
•
Sub Accounts (second digit - used for budget entries)
Expenditure accounts are broken down into sub accounts, which
represents the general type of expenditure (Salary, Travel,
Equipment).
•
Object Codes (last four digits - used for financial entries)
A more detailed breakdown of expenditures used for financial
reporting. Campuses may assign multiple object codes for each
sub account category.
33
Account
Type
Sub
Account
Object Code
5
x
xxxx
5xxxxx = Revenue Accounts
6
x
xxxx
6xxxxx = Expenditure Accounts
6
0
xxxx
600000 = Academic Salaries
6
1
xxxx
610000 = Staff Salaries
6
2
xxxx
620000 = General Assistance
6
3
xxxx
630000 = Supplies and Expense
6
4
xxxx
640000 = Equipment
6
5
xxxx
650000 = Travel
6
6
xxxx
660000 = Employee Benefits
6
8
xxxx
680000 = Unallocated
6
9
xxxx
690000 = Recharge
7
x
xxxx
Account Category
7xxxxx = Transfer Accounts
34
Budgeted “BD” Indexes
Accounting Indexes
DEPBDxx
DEPxxxx
Assigned by the CBO to establish a
permanent budget.
Set up by the department using
Index Management to track
expenses.
Single Permanent Budget
Multiple Cost Centers
19900A-416220-400000
19900A-416210-400000
CHEBD01
CHEBD01
CHE1234 – Course A
CHE5678 – Course B
CHE9012 – Course C
19900A-416220-440000
19900A-416210-440000
CHEBD02
BIOBD02
CHETEST – Project X
CHELABS – Project Y
CHEPROJ – Project Z
35
Budgeted “BD” Index
 Go to CBO Website
 Click on “Tools and Forms”
 Select “Budgeted Index
number request”
Accounting Index

Go to Blink
Search “Index
Management”

36
15 minute break
37
Please turn on your computers for the next section.
Thanks!
38
39
40
•
Results are subtotaled by date and ‘BD’ index.
•
Different Fund-Organization-Program (FOP) combinations
requires different ‘BD’ index numbers.
•
Initial Budget = Permanent Budget for current fiscal year.
•
Transfers = Permanent adjustments (+ or -) made during the
current fiscal year.
•
Adjusted Budget = Permanent Budget for next fiscal year.
41
Core Funds
Self-Supporting
• Appropriations are your
authority to spend (real
money).
• Revenue Budgets are earning
estimates.
• Expenditure appropriations are
recorded as credits to sub
accounts.
• Revenue appropriations are
recorded as debits to revenue
accounts.
• Revenue appropriations can
only be recorded by central
offices (CBO, GA, etc).
• Expenditure appropriations are
recorded as credits to sub accounts.
42
Authority to Spend = Sum of Appropriations
43
(60-68) Expenditure Appropriation = $1,641,498
(5x) Revenue Estimate =
-$180,000
(69) Recharge Estimate = -$1,461,498
Total Budget Estimate = -$1,641,498
44
Core Fund expenditures are limited by…
______________________.
Self-Supporting expenditures are limited by…
_______________________.
45
•
Enter organization number you wish to query
46
Adjustments: Only two types of adjustments affect the Adjusted
Budget Report:
1.
Payroll Documents = PRXXX
2.
Transfer of funds = TFYXXXXX
Example: Document Number 01684 = T0501684
FTE and $57,950 DB Adjustment)
(1.00 DB
47
48
Core Funds
• It’s your authority to
spend
• Management tool
• Basis for some allocations
Self-Supporting
• Used as a basis for rate setting
• Develops an operating plan
• Management tool
• Used for Systemwide
reporting
49
• Permanent Budget Feed
• Prior Year Carryforward
• Other One-time Allocations
Permanent Budget
+
Carryforward
+
One-Time Allocations
CY Operating Budget
50
Prior Year Carryforward
$61,356.43
Permanent Budget
$590,312.00
+
One-Time Allocations
$3,442.00
YTD Operating Budget
$655,110.43
51
• Permanent Budget feeds into the current
year operating ledger each July.
• Allocations are posted at the sub account
level
• June 30 Adjusted Budget = July 1 Feed
52
• Prior year surplus or deficit is carried over to
the following fiscal year.
• Balances are rolled into the new year based
on the reappropriation treatment of the
fund.
19900A = Index/Sub Account
64230A = Index/Sub 8
53
• Vice Chancellor Allocations
• Mid-Year Permanent Adjustments
Permanent allocations are augmented to
cover current year portion of expense (e.g.
merit funding). Requires department to
prepare both a current year and permanent
allocation.
• Other one-time allocations
54
• Compare actual expenditures for the current
period to budgeted figures for the same
period.
• Compare actual expenditures for the current
period to actual expenditures for the same
period in the prior year.
• Identify trends.
55
What questions would you ask about this December ledger?
56
• Should spending be curtailed?
• Can you realign your budget between sub
accounts?
• Can you request additional resources
from your Vice Chancellor?
• Does your permanent budget require
augmentation?
57
Balance (“realign”) all indexes at the sub account level.
NO negative balances.
Index
DEPxxxx
FTE
610000
3.00
Permanent
Budget
Index
DEPxxxx
Permanent
Budget
FTE
$150,000
610000
3.00
630000
(10,000)
630000
3,000
640000
(5,000)
640000
500
650000
(1,000)
650000
0
660000
33,000
660000
33,000
680000
20,000
680000
500
Total
187,000
Total
$150,000
187,000
58
Clear deficits at the Fund-Organization-Program level.
• ENPET expenditures to available fund sources
Fund
Account
Budget
Financial
Balance
19900A
630000
50
35
15
69750A
630000
25
30
(5)
19900A
630000
50
40
10
69750A
630000
25
25
0
59
• Revise permanent budgets as needed.
• Permanent adjustments made prior to June 30 will
be reflected in the July 1 budget feed.
• Refer to annual closing instructions published in
Blink. Includes fiscal closing dates and disposition of
unexpended balances at year end.
60
Campus Budget Office
http://blink.ucsd.edu/sponsor/cbo/index.html
Budget & Staffing Link
http://budgetlink.ucsd.edu
61
1. Sign on to UC Learning Center
2. Click on Learn at the top
3. Select Learning Activity Evaluations from the menu
4. Find Budgeting 101A, click the start button
5. Complete the evaluation, click submit
Thank you! Please Turn Off Your Computer When You Leave.
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