Zero Based Budgeting and the
Process Surrounding It
Zero Based Budgeting
Set budgeted expenses around the strategic
plan set by the college
Budget plans will be based on a twelve
month fiscal year
Budgets will be built from the bottom up with
the identification of “needs” versus “wants”
Will require departments and Budget
Managers to be more proactive around
planning expenses on an annual basis
Natural account classifications will be utilized
Zero Based Budgeting
An educational process will be conducted
campus wide during the 2014-2015 fiscal
year, with the goal of having the 2015-2016
fiscal year budget developed based on this
methodology
Small group meetings will be staged
throughout the course of the year to ensure
that all issues and nuances of departments
and units are understood in the context of
how we will develop the budget
Proposed Timeline for Budget Cycle
Dates
Plan
February–May:
IEBC discussions related to strategic use of institutional funds
March-August:
Information packet provided on budget website and IEBC MyCommunity
page, as well as meetings with budget managers to assist in planning process
September-October:
Develop parameters for proposal to BOT at October meeting
October–November:
Continue to develop budget and prepare unit data for input to Budget Office
for compilation of institutional requests/expectations at Natural Account
Classification level
December:
All submissions due to Budget Office by December 15, 2014-NO EXCEPTIONS
January:
Compilation of expense and revenue budgets. Institutional budget provided
to IEBC for consideration
February:
Present proposed budget, summarized at Natural Account Classification level
for the entire institution, to BOT
February–May:
Approved budget funding allocated across lines (i.e. into correct
departments, subcodes and projects). Input process closes on May 10th -NO
EXCEPTIONS
June 1st:
Fiscal Year Budgets become live for the 12 month period from June 1st
through May 31st
A Time for Planning
Step 1: Decide who needs to be involved in
the planning process and at what level
– Ex. VP, Chairs, Supervisors, Input Personnel
Step 2: Establish a timeline for your area and
work back
– Note: Deadline for final budgets are due from each
Division (or VP) to the budget office by
December 15, 2014-NO EXCEPTIONS
A Time for Planning
Step 3: Begin the planning by detailing what
you “need” to accomplish
– Suggestions:
• Hold meetings with unit personnel and
budget office personnel
• Do not look at current budgets (i.e.
start from scratch)
• Be consistent
• Disregard what you have had and focus
on what you will need
A Time for Planning
Resources to help in the planning process:
– Budget Intake Template and accompanying Budget
intake Template Narrative which provides
definitions of the natural account classifications
• Note the various tabs across the bottom of intake
template
– Subcode Definitions and Examples Spreadsheet
– 3 year (two previous fiscal years plus the current
fiscal year) report of actuals found by clicking on
the link (3 Year Report) then selecting the Budget
and Actuals Year to Year Comparison Report
• Detail about running the report can be found on
the budget website at Instructions Related to
Budget and Actuals Report in Argus
Intake Template Spreadsheet
Provided at the natural account classification level
– Ex. All travel subcodes roll up to one natural
classification level called Travel
Each tab provides helpful information on helping
departments to think about their needs
– Will also provide the reviewer of the information with the
necessary details in order to make strategic decisions
Two supporting documents:
– Intake Template Narrative
– Subcode Definitions and Example Spreadsheet
• Will guide the user on what subcodes make up the natural
account level so that budgets are entered in to the
appropriate classification
Intake Template Spreadsheet
Ultimately, the summary sheet from the
templates will be consolidated and presented
to the BOT
– This process is currently in the development phase