New Department Chair Orientation
August 16, 2013
Diane Stephens, Associate Vice President
Edith Winterhalter, Director of Academic Budget Management
Department of Academic Resources and Planning
California State University, Northridge
Today’s Agenda
• Introductions
• Budget Cycles / Processes
– State and CSU
– Campus
• Current Planning Environment
• Fund Accounting
• Budget Planning and Management
• Best Practices and Tools
• Discussion
• Today’s slides:
http://www.csun.edu/academic.resources/
BUDGET CYCLES AND PROCESSES
State and CSU
• CSU Board of Trustees presents budget request
to Governor (September - December)
• Governor issues budget request to legislature
(January)
• The fun begins!
• Approved State budget by June 30 for July 1
implementation—sometimes!
http://www.calstate.edu/budget/2005_06BudIndex/SupportBdgt_Book2/Budget_2.pdf
State and CSU
http://www.calstate.edu/budget/fybudget/2013-2014/documentation/budget-cycle-chart.shtml
CSUN Budget Planning Process
• Budget Process
• FTES targets defined (early fall for following
academic year)
• University budget process (when new funds
available)
• Enrollment growth basis
• Projects that support strategic priorities
• University Planning and Budgeting Group
(UPBG)
• Timeline (fall through summer)
CURRENT PLANNING
ENVIRONMENT
Current Planning Environment?
University Budget News Website:
http://www.csun.edu/presofc/campusbudgetnews-FAQs.html
Shrinking State Resources
for Higher Education
http://www.calstate.edu/pa/BudgetCentral/stateallocation2013.pdf
Shrinking State Resources
for Higher Education
http://www.calstate.edu/pa/BudgetCentral/edcompact2013.pdf
CSUN General Fund Budget
2007/08
Fee Revenue
35%
State
Appropriations
65%
Source: CSUN Office of Budget Planning and Management
CSUN General Fund Budget
2013/14
State
Appropriations
40%
Fee Revenue
60%
Source: CSUN Office of Budget Planning and Management
Uncertainty: The New “Normal”
• Transition between models
but clinging to old model
• 2013/14 CSU Budget
• incorporates $125.1MM in new funding
• includes $10MM for technology/online approaches
• reinstates $125MM from last year’s
budget cut
FUND ACCOUNTING OVERVIEW
Typical Funds in Academic
Departments
• Fees in Trust/General Fund (appropriations,
allocations, and fee revenue) – 48501
• State Trust Fund (includes ExL MOU
revenues, IRA, etc.) – 496XX, 44XXX,etc.
• Lottery Funds – technically State Trust…but…!
Typical Funds in Academic
Departments
• Auxiliary Funds (separate 501(c)(3) entities)
– Corporation
– Foundation
– Others (not held in departments)
• Campus Quality Fee
– Course materials
– Technology
– Student support
General Fund Reminder
• Two major funding groups in the General Fund:
– Base budget funding
– One-time funding
• Carry-forward balances??
CSUN AND ACADEMIC AFFAIRS
PLANNING AND BUDGET
MANAGEMENT
CSUN Policy on Fiscal
Responsibility
Ensure that:
– Expenditures don’t exceed available resources
– Funds expended for intended purposes in
appropriate time period
– Use internal controls to protect from misuse
– Correctly classify receipts and expenditures
– Comply with campus policies
http://www-admn.csun.edu/vp/policies/125_admn_fin/300/300-45.pdf
The Decentralized Model
Principles
• Communication and
Disclosure
– ERC
Recommendation
– College Budget Model
– Clarity of Business
Practices
– Facilitate Sharing of
Information and Open
Communication
• Balanced Budgets
• Meet FTES Targets
• Continuity/Consistency of
Practices
• Defensible Systems
(audit readiness)
ERC Recommendation - 1999
• Open budget reporting and consultation process
– Resources and allocations for all departments,
centers, and programs
• Contingency funds
– Maintain
– Communicate to department chairs
New for 2013/14
• Twenty (20) centrally-funded tenuretrack faculty positions for 2014/15
• Ten (10) centrally-funded new staff
positions
• Continued scrutiny of staff hiring—
Justification
for Initiation of Search
NEW
FOR 2012/13
required
What CAN We Control?
Focus on savings:
• Part-time faculty budgets (often controlled by
deans’ offices)
• Operating expenses—we can ALL do our part
• Bulk purchasing (take advantage of scale
economies)
• Defer expenses
• Eliminate unnecessary expenses (efficiency)
• Share costs with others (“Let’s make a deal!”)
Determination of College
Budgets
• Prior year base budget
• Budget adjustments (attrition, new hires, FTES
increase funding, planned reductions)
• Salary increases
• Non-General Fund resources
• Lottery budget
• Extended Learning partnerships
• Grants and contracts
College Budget Workbook
•
•
•
•
•
•
Budget summary—all funds
General Fund budget allocations (departments)
Department General Fund operating expenses
Salary worksheet
Part-time faculty budget model
Supplemental income from leaves and transfers
Salary Worksheet
Why It’s Important to Track Salary Costs:
• Academic Affairs—Salaries make up about 88%
of General Fund Expenditures
• Eight Colleges:
– Salaries make up 92% of General Fund expenditures
overall
– Salaries range from 85% to 96% of General Fund
expenditures among the eight colleges
• Salary costs fluctuate—A LOT!
Department Budgeting
• Part-time faculty costs
• Supplemental income from leaves and transfers
(if applicable—may be an offset for college
allocation of PTF to departments)
• Instructional support salaries (TA, GA, SA)
• Operating expenses
–
–
–
–
Supplies and services
Equipment
Travel/professional development
Contingency
BEST PRACTICES
Generating and Using the Right Information
Best Practices
•
•
•
•
•
•
•
Effective scheduling
SOC worksheet
Monthly reconciliation
Line item budgeting at departmental level
External funding
Contingency planning
“Wish list”
Effective Scheduling
• Effective use of physical, fiscal, and human
resources
– Effectively deploy tenured and tenure-track
faculty in order to maximize enrollments using
“fixed costs”
– Minimize part-time faculty and other short-term
salary costs--limit “variable” costs and
reassigned time
– Monitor/eliminate “low enrolled” sections
– Space utilization with University growth
Schedule of Classes (SOC)
Worksheet
• Schedule of Classes Worksheet
– Both a PLANNING and REPORTING tool for
Department Chairs
– Combines data from multiple systems
– Combines in worksheet that allows for:
• Scenario-building (“What If…?”)
• Determining cost of planned schedule
• Analyze use of resources to achieve FTES
target and support program priorities
• Modeling new program costs
– Users at multiple levels
SOC Worksheet
Subject
Catalog
Class Nbr
CCU
C/S #
Room
SubjectInstructor
Class Nbr
Catalog
100
10180 1
4 AC210
ART
ART 100
ART 100L
ART 100L
ART 243
ART 244
ART 244
ART 245
ART 250
ART 250
ART 484
ART 484
10181
10186
10187
18097
18098
18099
18100
18148
18149
11304
11305
1
2
2
3
3
3
3
3
3
1
1
4
7
7
7
7
7
13
36
36
36
36
AC210
AC210
AC210
AC407
AC407
AC407
AC407
AC334
AC334
AC211
AC211
Days
Hoban, James
Curr.
Enroll.
Instructor
Base Salary
FTES
Current
WTU
Current
FTEF
Current
2.7
1.0
0.07
$
2,075
6
40
3.9
2.6
0.17
$
4,894
6
35
4.3
2.6
0.17
$
4,894
6
35
PTF Expenses
Current
Proj Enroll
FTES
WTUCurr.
FTEF
PTFProg
Expenses
Code
Start
Base
Salary
Fac
CCU C/S # Room
Days CurrentEnd Time
Instructor
Current
Current
Time$ 4,706 PCurrent
MW 800
825 29 Wright, Frank Lloyd
1.9Enroll.
1.0
0.07
$
1,882
6
35
MW
TR
F
TR
MW
TR
TR
MW
MW
W
M
ART
100 Frank
10180
Wright,
Lloyd1
ART 100
10181 1
Olmsted, Frederick
ART 100L 10186 2
Wright, Frank Lloyd
ART 100L 10187 2
Wright,
Lloyd3
ART
243 Frank
18097
TOTALS:
Start
End Time
Time
1100
825
900
1400
800
1100
800
1100
1400
1600
1600
1125
1005
1220
1645
1045
1345
1045
1345
1645
1650
1650
40
29
32
28
25
26
27
5
10
7
8
Olmsted, Frederick
Wright, Frank Lloyd
Fac
Wright, Frank Lloyd
Hoban, James
Hunt, Richard M.
Sullivan, Louis
Lamb, William
Van Alen, William
Lamb, William
Gilbert, Cass
Van Alen, William
AC210
$44,706
AC210
$45,188
7 AC210
$ 4,706
7 AC210
$74,706
AC407
266
$ 3,458
$
$
$
$
$
$
$
$
$
$
$
5,188
4,706
4,706
3,458
2,757
3,550
3,822
7,451
3,822
4,000
5,285
MW
800
P
1.9
MW 1100
P
2.7
TR
825
P
3.9
F
900
P
4.3
TR
1400
F
5.6
P
P
P
F
F
P
P
F
P
P
F
8251.0
5.6
5.0
1125 5.2
1.0
1005 5.4
1.0
2.6
1220 2.0
0.5
2.6
1645 0.5
37.9
3.9
293.9
3.9
403.9
293.9
1.7
323.3
2.3
282.7
33
Wright,
Frank
0.33
$
2
30
0.07
$ - Lloyd
1,882
0.33
$
2
20
Olmsted,
Frederick
0.26
$
2
20
0.07
$5,538
2,075
0.26
$
5,962
3
35
Wright,
Frank
Lloyd
0.14
$
4
15
0.17
$
4,894
0.22
$
5,096
4
25
Wright,
Frank
Lloyd
0.16
$
3,733
1
15
0.17
$
4,894
0.22
$
1
5
Hoban, James
2.39
$ 34,076
310
0.33
$
-
SOC Worksheet = Planning +
Priorities
Subject
Catalog
Title
Class Nbr
Proj Enroll
PROJECTED
Prog Code Program Priorities / Categories
% Dept.
PTF Exp
$ 8,000
1
Required Grad. & U.D. Majors Courses 15.8%
38.1% $ 5,538
10.9% $ 5,962
2
Required L.D. Majors Courses
15.1% $ 12,740
3
Required Service Courses
0.0% $
20.1% $ 13,746
4
High Priority Elective Courses - Majors 0.0% $ $ 45,986
LowerDESIGN
Priority
-20Majors
ART 5244 GRAPHIC
I Elective
18098 Courses
2
G.E. Courses
ART 6244 GRAPHIC
DESIGN I
18099
2
20
ART 7245 GRAPHIC
35
OtherDESIGN
. . . I 18100 3
ART 250 PHOTOGRAPHY I
18148
4
15
TOTALS
Prog Code
Prog Code Program Priorities / Categories
FTES % Dept. WTU % Dept. FTEF
1
Required
MajorsART
Courses
15.2%350.47
ARTGrad.
100& U.D.
INTRO
PROCESS 1 101803.0% 6 7
2
Required L.D. Majors Courses
14
31.3% 12
35.7% 0.91
ARTService
100 Courses
INTRO ART PROCESS 7 10181
3
Required
15.7% 6 4
11.9%400.26
4
HighART
Priority100L
ElectiveART
Courses
- Majors LAB
8 10186
17.9% 613
15.2%350.97
PROCESS
5
Lower Priority Elective Courses - Majors
0
0.0% 0
0.0% 0.00
6
G.E. ART
Courses100L ART PROCESS LAB
1410187
32.1% 6 7
22.0%350.48
7
Other
. . . 243 INTRO TO TYPE
0 18097
0.0% 2 0
0.0%300.00
ART
TOTALS 45
43
3.09
ART 250 PHOTOGRAPHY I
ART 484 ART ED PORTFOLIO
ART 484 ART ED PORTFOLIO
18149
11304
11305
4
25
1
15
1
5
% Dept.
17.4%
12.0%
13.0%
27.7%
0.0%
29.9%
0.0%
Monthly Reconciliation
• PeopleSoft Tools
– nVision® Management Reports
– General Ledger (GL) Inquiry
Panels
• Timely review of expenditures
• Reconciliation training
– University Financial Assistants
(UFA)
Line Item Budgeting at
Departmental Level
• Ability to track expenditures against budget by
category using existing tools (PeopleSoft) with
minimal effort
• Comparison of original plan versus actual at fiscal
year-end
• Resources:
– http://www-admn.csun.edu/fasrm/solar/ (See
Chart of Accounts Reference Guide)
– Most colleges and areas have a reference guide
for most commonly used chartfield strings
External Funding
• Grant and contracts
• Tracking and processing reimbursed time in
timely manner
• Emphasis on growing external funding as State
support declines
Best Practices
• Contingency planning
• “Wish list”
Discussion and Questions
Contact Information
• Diane Stephens
– diane.stephens@csun.edu
– Ext. 5929
• Edith Winterhalter
– edith.winterhalter@csun.edu
– Ext. 4066
• For a copy of this presentation (next week):
http://www.csun.edu/academic.resources/