Budget Guidelines
Fiscal Year 2015 – 2016
I.
Overview
1. The annual budget process is an important opportunity for each Health Sciences department
to prepare its financial plan for the coming year in the context of longer term strategic plans
and institutional goals. The focus this year is to strengthen the link between institutional
goals, department narratives and the budgets as we move towards a multi-year budgeting
approach in future years. Multi-year budgeting improves our understanding of investments
and returns, and creates a runway to react to potential changes. Departments should develop
strategies that are consistent with the institutional vision and clear about resource utilization;
budgets and narratives help explain the chosen path.
2. Each department should complete its FY 2016 budget in accordance with the guidelines
contained within this document. It is important that the guidelines be adhered to for
consistency in developing a consolidated School of Medicine budget and to expedite the
review process.
3. Budgets should be submitted to the Dean’s Office, attention Cynthia Best, Associate Dean
for Finance and Administration, in accordance with the timetable shown in Section III (Page
4). The entire budget package, including the Word/PDF narrative and all required budget
reports, must be submitted together on the due date specified. The Dean’s Office will review
the budgets for accuracy and completeness and will work with the departments to correct any
problems and clarify questions. The budgets will then be forwarded to Senior Vice President
and Dean Vivian Lee and the School of Medicine Executive Committee (SOM EC) for
review.
4. Each department will present its budget and department vision to the SOM EC on the date
indicated in Section III (Page 4).
5. Upon review, and after any necessary corrections, Dr. Lee will notify each department in
writing that its budget is approved.
6. During FY 2016 each department will continue to submit reports explaining major variances
between budget and actual operating results.
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II.
Items of Note
1. BPC/Level of Budget Detail - FY 2016 will be the fourth year that we will use the BPC
system to prepare our budgets. The system incorporates historical personnel and financial
data to make multiple years of information easily accessible. BPC provides the capability to
budget by activity/project and the means to upload activity budgets to PeopleSoft for
inclusion in the monthly Management Reports.
BPC also allows budgeting all activities or projects within a Fund in an Org ID in a single
input template, or a combination of budgeting individual activities or projects and the
remaining activities or projects at the Fund/Org level. Departments are encouraged to
incorporate budgeting at the Fund/Org level where possible to reduce the overall work effort
associated with formulating their budget. Reports such as the Budget vs. Actual Activity
Detail are available to show the magnitude of revenues and expenditures in each activity or
project to help departments determine the best approach for budgeting.
2. Value Driven Outcomes (VDO) - Beginning July 1, 2014, clinical departments in the
School of Medicine began using a standardized chart of accounts that defines both the
mission and the expense type of the transaction. The standardized chart of accounts was
implemented as part of the VDO initiative, and extends to non-provider and non-personnel
expense for all fund 2000 activities.
We encourage you to budget non-faculty personnel distributions using the job code to
account code grid found at http://bpc.utah.edu under “Other Budget Info.” Find the job code
of non-faculty in the grid and use the listed account codes to define the mission(s) the nonfaculty supports. There may be occasions where more than one distribution row is required
for an employee when the employee supports multiple missions, but is paid from one
activity.
A non-personnel expense grid, also available at http://bpc.utah.edu under “Other Budget
Info,” defines the fund 2000 account categories that require a mission designated account
code. Clinical departments should designate the mission non-personnel expenses support for
the 25 account categories listed in the aforementioned grid. Departments may use these
account codes during the budget process, but are not required to.
The MBM Faculty Activity Survey serves as the starting point for quantifying faculty effort
by mission. Department administrators will be able to adjust faculty effort on a prospective
basis using the Faculty Costing Template in BPC.
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Department administrators and other personnel can access the Mission Based Accounting
Universe in BusinessObjects Enterprise to view their mission based accounting data in
existing reports, or may create their own.
3. Multi-Year Recruitment Plan – New this year departments will be asked to submit a
summary of recruitment plans for FY 2016 – FY 2018. A report will be developed that can
be inserted in Part D of the Budget Narrative, or departments can manually populate the
information in the requested format.
4. Multi-Year Cash Projections – Also new this year, departments will be asked to submit a
summary of cash projections for FY 2016 – FY 2018. The Multi Year Cash input template in
BPC allows departments to input total cash for fund groups 2000, 2500, and 6000 for FY
2017 – FY 2018.
Departments should project total cash for FY 2017 and FY 2018 and include a brief
description of increases or decreases. The completed report should be inserted in Part M of
the Budget Narrative.
5. Mission Summaries – Similar to last year, department mission summaries will be included
in the budget materials to provide context for the financial review. The mission summaries
will be prepared centrally. The formats are currently being updated from last year.
Departments will receive the mission summaries by February 27, 2015 and should review the
information for accuracy, and respond to the specific questions.
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III.
Timetable
Budgets should be submitted to Cynthia Best in the Dean’s Office according to the following
timetable. Dates for presentations to the SOM EC are also listed.
FY 2015 - 2016 Budget Meeting Schedule
Department
Biochemistry
Dean's Office
CCTS
Neurosurgery
Due in Dean's
Office
Wed
8-Apr
Presentation Date
Wed
Length
Time
22-Apr
30
20
20
30
2:15 - 2:45
2:45 - 3:05
3:05 - 3:25
3:25 - 3:55
2:50 - 3:10
3:10 - 3:30
3:30 - 3:50
3:50 - 4:20
4:20 - 4:50
CVRTI
Population Health Sciences
Molecular Medicine
Neurobiology & Anatomy
Dermatology
Mon
13-Apr
Mon
27-Apr
20
20
20
30
30
Neurology
Radiation Oncology
Thur
16-Apr
Mon
4-May
40
30
1:50 - 2:30
2:30 - 3:00
Mon
6-Apr
Mon
20-Apr
6-May
40
30
30
30
1:50 - 2:30
2:30 - 3:00
3:00 - 3:30
3:30 - 4:00
11-May
40
30
30
20
45
2:00 - 2:40
2:40 - 3:10
3:10 - 3:40
3:40 - 4:00
4:00 - 4:45
18-May
30
40
30
30
40
2:15 - 2:45
2:45 - 3:25
3:25 - 3:55
3:55 - 4:25
4:25 - 5:05
20-May
60
45
60
20
1:55 - 2:55
2:55 - 3:40
3:40 - 4:40
4:40 - 5:00
Pathology
PM&R
Radiology
DFPM
Psychiatry
Ophthalmology
OB/GYN
WCI
Pediatrics
Orthopaedics
Human Genetics
Biomedical Informatics
Oncological Sciences
Anesthesiology
Internal Medicine
Surgery
HCI
UUMG
Thur
23-Apr
Thurs
9-Apr
Mon
27-Apr
Thur
30-Apr
-
Wed
Mon
Mon
Wed
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IV.
University Hospital Budget Considerations
Each department should abide by the following instructions when budgeting for University
Hospital payments/support and resident support.
University Hospital
Salary increases for department employees paid from UUHC Org ID’s will be established based
on Hospital specific parameters/guidance.
The dollars associated with Chief Value Officers (CVO)/Medical Directors will be allocated
based on a payment methodology developed by Dr. Tom Miller. Dr. Miller will be working
with the Chairs and the CVO’s to align the payments they receive with the work they do in their
respective areas of responsibility.
GME Residents
The UUHC GME Office will send out a chart to administrators and program directors in each
department indicating by program exactly how many residency positions are being funded by
UUHC for FY 2015. The chart will also show the anticipated number of positions that will be
paid by the Affiliated Hospitals next year. This data comes from your current rotation schedule
and the training agreements you have signed with the affiliated hospitals for the current year. If
you sign an agreement with a training site to fund positions, and then do NOT send that number
of residents to the site, your department, not UUHC, will have to pick up that expense. You will
then be expected to downsize your training program in the next year because no School of
Medicine department may fund any resident training slots, except on a short term emergency
basis. If you move resident rotations from UUHC to other sites, you will NOT get UUHC
funding for those positions. Funding for these positions must come from another source.
Program Directors are responsible to assure that funding is available prior to hiring residents.
Fellows: UUHC reimburses departments for 25% FTE salary and benefits (based on PGY level
5) for ACGME sanctioned fellowships rotating through UUHC on clinical rotations not
reimbursed by other sources. You should plan to pay for these positions initially, with
reimbursement from UUHC in December and June. Whereas some exceptions exist, please
contact UUHC to verify funding support for fellows in your department.
The SOM EC has convened a task force to conduct a comprehensive review of GME funding for
the enterprise. Pending that review, departments should not budget any incremental increases in
residents or fellows other than those positions already approved.
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V.
Budget Narrative Format
Part A: Summary of Strategic Plans (1-2 pages)
This section should include a high-level summary of the department’s strategic plans over the
next 3-5 years. This will serve as context for the annual budget review. For FY 2016, please
specify what is included in the budget and what is not.
Part B: Executive Summary of Financial Considerations (1-2 pages)
This section should include a summary of the department’s budget highlights in bullet point
format. Please address significant points related to the operating budget, non-operating
expenses, and any major differences between the FY 2015 budget, FY 2015 forecast and FY
2016 budget.
Part C: Mission Summaries
Department mission summaries will be included in the budget materials to provide context for
the financial review. The mission summaries will be prepared centrally. Departments should
review the information for accuracy and respond to the questions.
Part D: Recruitment
This year departments will be asked to submit a summary of recruitment plans for FY 2016 – FY
2018.
For clinical departments this recruitment information can be pulled from the University of Utah
Faculty Recruitment (UUFR) database located at https://drcwas7.med.utah.edu:7503/UUPR/.
Information contained in the database will be aggregated in the format shown below for hires
using the BusinessObjects Enterprise reporting tool.
FY 2016
Specialty Area/Division
Type of Hire
Area 1
FY 2017
FY 2018
New
1
Replacement
0
New
1
Replacement
0
New
1
Replacement
0
Area 2
0
2
0
2
0
2
Area 3
1
1
1
1
1
1
Area 4
0
0
0
0
0
0
Grand Total
2
3
2
3
2
3
Part E: Assumptions
State the major assumptions used in formulating the budget, including

Calculation of clinical revenues and whether growth is based on increases in reimbursement,
patient volume, faculty capacity, or productivity. Specify what percentage increase in
clinical revenues the department is budgeting.
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
An explanation of how the department determined the budgeted amount of revenue and
expenses from grants and contracts. Please also describe the basis for estimating new grant
awards, including the number and percentage of pending grants that the department estimates
will be funded. Grant budgets should be realistic, and should be historically based if the
department deems adequate data is available. Departments may choose to make their best
estimates of which outstanding grants will be funded, but should keep in mind that the
budgets should be meaningful, not overly conservative nor overly optimistic.
Part F: 5-Year Summary
A 5-Year Summary will be generated as a report within BPC. It will include actual data for FY
2012 – FY 2014, the forecast for FY 2015, and the budget for FY 2016. In this section, please
include explanations for material or unusual variances in the 5-Year Summary. The 5-Year
Summary will be included in the budget materials as a PDF and does not need to be embedded in
the narrative.
Part G: Salary Program
(1) Salary Increases
July 1 is the time for performance-based salary increases; off-cycle increases are rare.
Departments should plan accordingly.
This section should contain a description of how the department complied with the salary
guidelines that will be issued by Senior Vice President Vivian Lee. Also list in the grid
below the average percentage increases for ongoing positions in the 1) faculty and 2) fulltime staff categories (Note: this information is the first line of data in each section of the
BPC Salary Detail Report under the drop down menu option labeled “Job Category”).
Job Category
Faculty
Full-Time Salaried Staff
Full-Time Hourly Staff
ABA
% Change
Within BPC, departments will be required to provide a justification for all individual
increases above the maximum specified by the President and Senior Vice President Vivian
Lee. In addition, departments will be asked to provide additional information for proposed
salary increases above a certain level. More detail will follow after the salary guidelines are
issued. In general, the information requested will be as follows:
For equity requests, departments should provide comparable information for others in the
department/division that hold the same job title as well as any relevant market data.
For performance-based requests, departments should describe what factors were used to
determine the proposed salary increase (e.g., additional duties or merit). For anticipated
promotions or reclassifications that will undergo an HR review, budget the increase as a
lump sum and do not list the anticipated salary for the individual. The HR review process is
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sufficient; additional individual review as part of the new year salary process is not needed.
(2) Scattergram
A scattergram of individual faculty salaries based on 6/30/14 actual salary data will be sent to
each department by mid-February. Please verify the data and notify the MBM Office of any
changes by mid-March. The confirmed scattergram will be included in the budget materials
by the MBM Office and does not need to be submitted separately by departments.
(3) AAMC Percentile Summary
Within the scattergram file, MBM will provide summary information on the average AAMC
percentile by rank, gender and track to be included in this section. Please embed the
summary table (example shown below) in this section of the narrative.
Average
Median
High
Low
AAMC
AAMC
AAMC
AAMC
Rank
Gender
%tile
%tile
%tile
%tile
Std Dev
Count
Instructor
Female
Male
Asst Prof
Female
Male
Assoc Prof
Female
Male
Prof
Female
Male
Gender
Female
Male
------------------
----
----
----
----
----
Total
Total
Total
Total
Tenure
Tenure
Non-Tenure
Total
Total
Part H: State Funds
Similar to past years, the MBM State Fund Allocation Model for FY 2016 utilizes separate pools
for Basic Science Units and Clinical Departments. Within each group, funds are allocated to
departments based on proportional activity in both teaching and research areas.
The categories included for Education are as follows:
 Medical Student Didactic Teaching Years 1 – 4
 Medical Student 3rd Year Rotations
 Medical Student 4th Year Rotations
 Non-MD Courses Taught (SCH)
 Degrees Granted
 Residents, Clinical Fellows, and Post Doctoral Fellows
The Research categories are:
 Direct Grant Expenditures
 Indirect Costs Generated
Contact Cynthia Best for details on the model and the data details. Final figures will be available
in mid-March after the legislative session has closed.
Using the format below, please show the distribution of state funds (1001, 6100, and 6300) from
the MBM model, curriculum and any other source.
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State Fund Source
Amount
Fund
Notes/Comments
MBM Model
$0
6100
Any notes
Curriculum
$0
6100
Any notes
Other (please specify)
$0
1001
Any notes
Other (please specify)
$0
6300
Any notes
Total State Funds
$0
Part I: Dean/UUMG/Compliance Tax
In this section use the template below to reflect the categories of clinical income and the
calculation of the Dean/UUMG/Compliance Tax for the department’s FY 2016 budget. The total
tax rate is 4.4%.
2015-2016
EPIC/IDX Collections
Call Pay
Clinical Contracts
Insurance Settlements
Provider Medicaid Funds
Other Clinical Income (please specify)
Less: Technical Fees
Less: ERS Collection Fee
Less: Other (please specify)
Total Clinical Income
Taxes Due @ 4.4%
Part J: Department Tax
In this section, please describe Department tax, if applicable, and indicate how this amount is
calculated.
Part K: University Hospital Support
Support payments that have been negotiated with the University Hospital should be listed and
described using the following format.
TYPE
DESCRIPTION
Chair Support
NAME
AMOUNT
Amount
Medical Director Support
Title
Amount
Fellow Salary Support
No. of Fellows
Total Amount
Program Support (list by
program)
Salary Deficit Guarantee
Total Amount
Total Amount
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(list by name)
Part L: Support (Other than University Hospital)
Include in this section a detailed list of support funds that have been negotiated
with other Health Sciences, University, or external entities or other sources and are transferred to
your department to be paid out of your OrgID.
Please use the following format:
Support Source
Purpose
Amount
Fund
Support End
Date
Notes/Comments
Dean's Office
Faculty Startup Support
$0
xxxx
xx/xx/xx
Any notes
SVP's Office
Program Support
$0
xxxx
xx/xx/xx
Any notes
TOTAL
$0
Examples of support sources are: Huntsman Cancer Institute, HHMI, Molecular Medicine,
Senior Vice President for Health Sciences, Dean School of Medicine, PCMC, royalties, etc.
Part M: Cash Balances and Cash Reserves
Cash reserves are defined as cash available for operational expenses in case of a financial
downturn. This is a reflection of a department’s financial health.
The process for calculating and reporting cash reserves will be the same as prior years. Each
department should specify the amount it considers as cash reserves as well as an explanation of
how it determined the amount of Adjusted Cash Reserves.
Total Cash and Excluded Cash by Fund
A report is available in BPC (“Total Cash and Excluded Cash by Fund”) that shows total
cash balances and excluded cash by fund group. Total Cash includes cash in all
department chartfields within the various fund groups. Excluded Cash will be the cash in
those chartfields that you currently have identified to the MBM Office as restricted and
not part of cash reserves as defined above. Entities can change the included or excluded
designation for any chartfield by contacting James Steffen in the MBM Office. As in
prior years, departments can adjust for amounts contained within “included” activities
that the department considers not part of cash reserves. This chart should be included in
Part M as Exhibit A.
Excluded funds may include the following:





Gift Accounts
Faculty development accounts
Faculty startup funds
Faculty recruitment funds
Funds reserved for major capital purchases
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
Other
Multi-Year Cash Projection
New this year, departments are asked to submit a summary of cash projections for FY
2016 – FY 2018. The “Multi Year Cash Projection Report” from BPC provides historical
context and includes cash changes forecasted for FY 2015 and budgeted for FY 2016.
Departments should project total fund 2000, 2500, and 6000 cash balances for FY 2017
and FY 2018 in the Multi Year Cash Projection input template. The report and the graph
should be included in Part M as Exhibit B.
Summary of Cash Totals
The “Summary of Cash Totals” report should be included as Exhibit C to show cash and
cash reserve trends, quasi-endowment and endowment cash balances, as well as days of
cash. The FY 2017 and FY 2018 cash projections are automatically populated with the
values input in the Multi-Year Cash Projection input template.
Please comment on significant trends in cash balances, cash reserves and future
cash projections.
Part N: One-Time Expenses
Please include an explanation for any material one-time expenses. Examples of one-time
expenses include the following: equipment and remodeling/construction costs in excess of
$5,000, recruitment expenses and other non-recurring expenses. These outlays are not
considered operational and ongoing. If any transfers to endowment chartfields are planned for
FY 2016, please include those as well. The purpose is to identify the revenues/expenses for
operations. If there are any items that distort operations, they should probably be classified as
one-time items.
You can budget these transactions in detail within the BPC system. At the account code level
you can flag the amount to be considered one-time and add comments for your reference.
Amounts designated as one-time for either revenues or expenses will be shown separately from
the operational section of the Fund Summary. Use the functionality within BPC to track the
detail by activity/project and account code, but describe the nature of the one-time expenses in
general within the budget narrative.
VI.
SOM EC Budget Presentation
Each department will present its budget to the SOM EC based on the timetable in Section III.
Approximately one-half of the time should be spent in presentation, with the remainder available
for questions and discussion. The format will change this year to focus more on strategic plans.
Details and a PowerPoint template will be distributed by the end of February.
For reference, the committee members are as follows:
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Voting Members
John Zone
Wes Sundquist
Wendy Chapman
Alfred Cheung
Ed Clark
Sam Finlayson
Peter Jensen
Caroline Milne
Charles Saltzman
Monica Vetter
Carrie Byington
Dean Li
Wayne Samuelson
Chair, Department of Dermatology (SOM EC Chair)
Co-Chair, Department of Biochemistry (SOM EC Vice-Chair)
Chair, Department of Biomedical Informatics
Chief, Department of Internal Medicine, Division of Nephrology
Chair, Department of Pediatrics
Chair, Department of Surgery
Chair, Department of Pathology
Associate Chair for Education, Internal Medicine
Chair, Department of Orthopaedics
Chair, Department of Neurobiology & Anatomy
Associate Vice President for Faculty and Academic Affairs,
Vice Dean for Academic Affairs & Faculty Development, SOM
Associate Vice President for Research and Vice Dean for Research, SOM
Vice Dean for Education, SOM
Ex-Officio and Non-Voting
Vivian Lee
Cynthia Best
David Browdy
David Entwistle
Sean Mulvihill
Senior Vice President for Health Sciences and Dean, SOM
Associate Dean for Finance and Administration, SOM and MBM Director
Associate Vice President for Finance and Chief Financial Officer
CEO, University Hospitals and Clinics
Associate VP for Clinical Affairs and CEO, UUMG
VII. Resources
1. BPC System instructions are available on-line at the BPC website: www.bpc.utah.edu
2. The following account codes are being used HSC-wide for specific types of support or
expenditures.
Account
49935
49936
49937
49938
49939
67536
67538
67539
67579
68900-68925
Description
U HOSPITAL SUPPORT BELOW-THE-LINE
DEAN/UUMG/COMPLIANCE TAX - INCOMING
DEAN/SVPHS SUPPORT
EPIC CHARGES – INCOMING
UMB CHARGES – INCOMING
DEAN/UUMG/COMPLIANCE TAX - OUTGOING
EPIC CHARGES – OUTGOING
UMB CHARGES – OUTGOING
UH FACILITIES & ENGINEERING
U HOSPITAL SUPPORT ABOVE-THE-LINE
3. A sample narrative will also be available on the BPC website in early March as an example
of what each section should include and how it could be formatted
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4. Similar to last year, an Excel file will be provided with templates for the grids requested in
the Narrative so that departments do not need to take the time to create the formats.
5. Budget Process Timeline
Date
12/30/2014
1/15/2015 - 2/12/2015
1/21/2015
Week of 1/26/2015 *
1/30/2015 *
2/13/2015
2/20/2015
2/27/2015
2/27/2015
2/27/2015
3/12/2015
3/16/2015
3/18/2015
3/19/2015 *
3/19/2015 *
4/8/2015 - 4/30/2015
4/22/2015 - 5/20/2015
Week of 5/26/2015
6/15/2015 *
July 2015
Item
AAMC Faculty Salary Survey Data Distributed
Training Sessions
BPC System Opens
SOM Budget Guidelines available on www.bpc.utah.edu
State Fund Allocation Data circulated for review
FY 2014 scattergrams distributed by MBM
State Fund Allocation Data comments due
Budget Presentation Template circulated
FY 2016 Malpractice Premium Rates available
Mission Summaries circulated
Utah State Legislative Session Ends
FY 2016 Curriculum Amounts available
FY 2016 State Fund Amounts available
President's Letter Circulated
SVP Budget Letter and Salary Guidelines Circulated
Budgets Due to Dean's Office (7 Groups)
Presentation Dates (7 Meetings)
Budget Approval Letters
Department Mass Update eForm Tool Opens
Chair Budget Review Meeting
Contact Person
Kami McNeill
Nikki Thompson
Steve Petersen
Cynthia Best
Jane Hou
James Steffen
Jane Hou
Cynthia Best
Wendy Kwan
Wendy Kwan
Jane Hou
Catalina Ochoa
Cynthia Best
Nikki Thompson
Wendy Kwan
Human Resources
Nikki Thompson
* Anticipated dates
VIII. Submission
PDF copies of the following BPC reports should be submitted along with your budget narrative
to the Dean’s Office according to the schedule in Section III. Please email each report as a
separate PDF file along with your narrative.
•
•
•
•
•
Fund Summary (OrgID Only)
Consolidated Fund Summary
5-Year Comparison
Employee Detail Report
Salary Justification Report
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