Office of Budget & Resource Planning
FY15 Beginning Budget
General Budgeting Instructions
Table of contents
Beginning Budget Terminology.............................................................................................................................................. 2
Preliminary Budgets Loaded ................................................................................................................................................... 2
Submission Information .......................................................................................................................................................... 2
General Budgeting Rules and Guidelines ............................................................................................................................... 3
Budgeting for Revenues/Sources ............................................................................................................................................ 3
Revenue............................................................................................................................................................................... 3
Other Sources ...................................................................................................................................................................... 4
Budgeting for Expenditures/Uses ........................................................................................................................................... 4
Personnel Costs ................................................................................................................................................................... 5
Unclassified..................................................................................................................................................................... 5
Classified......................................................................................................................................................................... 5
Pay Account Codes (Unclassified and Classified) .......................................................................................................... 6
Student Pay ..................................................................................................................................................................... 6
GTFs (Graduate Teaching Fellows) ................................................................................................................................ 6
Health Insurance (Unclassified & Classified): PEBB .................................................................................................... 7
Retirement ....................................................................................................................................................................... 7
OPE-Other Payroll Costs ................................................................................................................................................ 7
Services and Supplies (S&S) .............................................................................................................................................. 8
Motor Pool Rates ............................................................................................................................................................ 8
Telecommunications ....................................................................................................................................................... 8
Travel .............................................................................................................................................................................. 8
Utilities ............................................................................................................................................................................ 8
Reserved Parking ............................................................................................................................................................ 9
Assessments .................................................................................................................................................................... 9
Transfers Out .................................................................................................................................................................. 9
Information Relevant to Specific Funds ................................................................................................................................. 9
Knight and Faculty Excellence Chairs ................................................................................................................................ 9
State Match ......................................................................................................................................................................... 9
(fund codes 008xxx) ........................................................................................................................................................... 9
Designated Operations ...................................................................................................... Error! Bookmark not defined.
Service Centers and Auxiliaries .......................................................................................................................................... 9
BRP Contact Information...................................................................................................................................................... 12
Beginning Budget FY14
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General Budgeting Instructions
BEGINNING BUDGET TERMINOLOGY
Preliminary Budget: The FY14 Beginning Base Budget plus any permanent budget adjustments
made in FIS through the close of Period 9 and/or by the Office of Budget and Resource Planning
after Period 9 (displays on BB application as Period 13). This is the data which is loaded into the
Beginning Budget Application on the BRP website at the beginning of the budget process.
Adjusted Budget: The Preliminary Budget plus any adjustments made by you through the
Beginning Budget Application (displays on BB application as Period 14).
FY15 Beginning Base Budget: The Adjusted Budget plus any final adjustments (you will be notified
if any changes occur). This base budget is often the one from which budgetary decisions are made
during the new fiscal year, so it is important that the budget reflects your anticipated revenues
and expenditures as accurately as possible. This is the budget that will be uploaded to Banner in
FY15 Period 01.
Balanced Budget:
For funds with revenue, this means that your sources (revenues, ISRs, transfer-ins) are equal to
your uses (labor, S&S, transfer-outs).
For funds with budget allocation only (e.g., General Fund), it means that your budget decreases
must equal your budget increases.
PRELIMINARY BUDGETS LOADED
The following items have been loaded as part of the preliminary budget to start the FY15
beginning budget process:
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Permanent Oregon Budget Model (OBM) allocations for academic units
Permanent “As Is” adjustments for non-academic units (prefaced as FY15 ASIS)
Permanent New Initiative augments for non-academic units (prefaced as FY15 ASIS)
Adjustments to ICC allocations
Adjustments to Incidental Fee allocations
SUBMISSION INFORMATION
All Responsibility Units: After you have reviewed your area and approved any departments
under you, contact your analyst for a report for you to print for your Level 3 Dean/Director/VP to
review and sign. Please send a signed copy to your BRP analyst.
Auxiliaries and Service Centers: Submit the details of how you arrived at your projected revenues
to your BRP analyst. There is no set format for this submission. Examples would be: “revenues
estimated on enrollment projections” and/or “estimated on an historical percentage increase”
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General Budgeting Instructions
and/or “estimated on prior year’s sales volume and established fee rates,” or send a copy of the
spreadsheet on which you made your calculations.
Due Dates
Dept due date: check with your RU budget manager for your deadline
RU due date: June 2nd 2014
GENERAL BUDGETING RULES AND GUIDELINES
Budget in WHOLE dollars only (i.e., no cents).
Budget adjustments must balance by fund, but not necessarily by index. This means increases
must equal decreases at the fund level.
If you anticipate more expenses than revenue or budget, discuss how to resolve this shortfall with
your Dean or Vice-President. If you plan to spend revenues made in prior years, you will be given
the opportunity to budget those expenditures during the Carryforward process. DO NOT BUDGET
A DEFICIT.
BUDGETING FOR REVENUES/SOURCES
All revenue and source codes (0xxxx, 79xxx, and 91xxx) are shown as negative in the budget
application and must be entered as such when making adjustments. For example, to increase a
revenue, ISR or transfer in budget by $100, type the increase as -100.
Revenue
(account codes 0xxxx – 08xxx) You may budget in any revenue code. Please use the code that most
accurately reflects the source of the revenue. You can find a complete listing of revenue/source account
codes and descriptions on the Business Affairs Office website: Account Codes-BAO Chart of Accounts.
Revenue is a source new to the university. Funds moved from one university entity to another
are Internal Sales, ISRs or fund transfers (see “Other Sources” below).
Revenue may NOT be budgeted in General Fund (001100), ICC (001700), or State Match
(008xxx) funds except by central administrative personnel.
Revenue from the UO Foundation: when setting your budget, be sure to reference the latest
information supplied by the Foundation regarding endowment earnings.
Interest revenue on unrestricted gift funds are collected centrally to fund University
Development, so do not budget for interest. For a little further information, see Gift
Assessments (BAO website).
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General Budgeting Instructions
Other Sources
(09xxx, 79xxx, 91xxx)
Internal Sales account codes (09xxx) are used to record "revenues" of UO entities for internal
sales and services provided to other UO entities (inter-departmental). These income account
codes are reclassified as negative expenditures for annual financial statement purposes.
ISRs: (Internal Sales/Services Reimbursements) must be used when one university entity pays
for goods or services provided by another university entity using the General Fund (001100),
ICC (001700), or State Match (008xxx) funds. These sources are not “true” revenue, since the
revenue has already been realized on the university books.
Transfers In are transactions where the funds are moved from one fund to another that are not
as a result of an exchange of goods or services. Transfers are only allowed in specific instances.
Please check with your analyst before initiating a new transfer budget. Transfers-in should be
budgeted in the appropriate 91xxx account code and have an identifiable offset of a Transfer
Out. Beginning in FY15 Transfers In and Transfers Out will no longer be allowed with other
UOS institutions.
To assist with source budget estimates, a four-year history of revenues, expenses and transfers
is available in the Revenue & Expenditure link on the BB website. The three files are:
Revenue Funds-by Index (has detail by account),
Revenue Funds-by Dept (summed by Rev, Exp, Trnsf), and
Revenue Funds-by RU (summed by Rev, Exp, Trnsf).
These Excel files have drop-down filters along the top row. You can refine your selection
through the filters to get an idea of the financial history of your funds with revenue.
BUDGETING FOR EXPENDITURES/USES
Since many costs are not yet known, we have developed a budgeting “Standard Rate of
Inflation” (SRI) which is calculated from the three year average of the 2nd half of the Portland
Consumer Price Index. The Portland CPI can be found at: Portland Consumer Price Index (CPI)
(Knight Library website).
STANDARD RATE OF INFLATION FOR FY15: 2.67%
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General Budgeting Instructions
Personnel Costs
(account codes 101xx through 109xx)
Note: Under the new budget model, schools and colleges are responsible for most increases to their
personnel expenses. In most (but not all) circumstances, non-academic units will be funded for any
mandated, university-wide increases.
Personnel costs comprise the bulk of most units’ expenditures and should be budgeted as
accurately as possible. BRP has many budgeting tools to help you budget salaries and OPE:
Personnel Budgeting Application (PBA) calculates salary and OPE by labor distribution and
takes into consideration all of the estimated rates listed below and the variables associated
with different funds and campus units. A separate set of user instructions for the application is
available on the website. Use of the application is highly recommended, but not mandatory.
It does not substitute for your own thoughtful review of your personnel budgets. If you wish to
budget personnel by hand, there is the following resource:
The OPE Worksheet is a bare-bones version of the PBA, useful for budgeting individuals
with single labor distributions. It does not include fund or unit variables.
Unclassified
Per the President there will be a wage increase in FY15 for certain unclassified employees.
This increase is not included in the PBA calculations. Units supported by the General Fund
will receive a supplement to cover the increase at a later date. For personnel on funds other
than the general fund, you should budget for the COLA increase and for any potential merit
increases.
Classified
The current SEIU contract extends through the end of FY15 and calls for a 2% COLA
adjustment on December 1, 2014. The COLA increase is included in the PBA.
Step Increases: In May of 2014 any step increases that had been delayed will be provided at
that time, with retro pay. The step calculation going forward will be based on merit date as
it has been done historically.
IT Personnel: Remember that your IT personnel do NOT receive automatic step increases.
Their salaries should be kept commensurate with market rates.
See: Employee & Labor Relations (HR website) for further information on:
- Labor Agreements
- UO/SEIU Monthly Salary Schedule
- Furlough Days
- Suggested IT Ranges
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General Budgeting Instructions
Pay Account Codes (Unclassified and Classified)
(102xx and 104xx)
Historically, people have placed most of their unclassified and classified personnel budgets
in account codes 10100 or 10300. This has resulted in the budgets of account codes 102xx
and 104xx being millions (yes, millions) less than actual expenditure over the course of a
year. While there are some pay expenditures that are unpredictable (e.g., pay-out of
vacation time at termination) others are more predicable (summer pay or shift differential).
Beginning in FY15, unclassified salaries should be further broken-out between 10102
Unclassified Salaries-Faculty and Unclassified Salaries-Non-Faculty.
A set of Excel spreadsheets has been created so you may view four years of your personnel
expenditure history. There are three workbooks located at Personnel Expenditure History.
Please review where you actually expend your salaries and budget accordingly. The three
files are:
Labor by Index
Labor-by Dept
Labor-by RU
Student Pay
All student employees must be paid at least minimum wage and any wage rate over $14/hr
must be approved in advance by the Employment Manager in Human Resources.
See: Student Wage Rates (HR website)
Use the Personnel Expenditure History reports referenced above to help you estimate your
Student Pay based on four years of history.
GTFs (Graduate Teaching Fellows)
The current GTF contract ended in March 2014. When a new contract is approved all of the
new rates, etc. will be posted on the HR website.
GTF Salary: The salary rates can be found at: GTFF Labor Agreement (HR website) Article 21,
Salary.
GTF Tuition & Fees: Remissions for tuition and fees are based on the resident rates for the
graduate school in which the GTF is enrolled. The proposed tuition and fees schedule for
FY13 can be found at Tuition Regular/Grad/Differential Rates-Proposed.
All student fees are reimbursed to the student except for $140 of incidental fees.
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General Budgeting Instructions
GTF Health Insurance: The current GTF contract ended in March 2014. When a new
contract is approved all of the new rates, etc. will be posted on the HR website.
Remember that in a School or College, you are responsible for all your GTF costs.
If you are a non-academic unit and have a GTF on an IPSA (Institutional Priority and
Strategic Alliance), you are responsible only for the student’s salary and attendant OPE.
You will be reimbursed for the tuition remission, health insurance and student fees, so you
don’t need to budget for those items.
If you have any questions about hiring a graduate student, please contact the Graduate
School.
Health Insurance (Unclassified & Classified): PEBB
The cost of medical insurance for the period July – November 2014 is a blended, full-time
rate of $1,260 per month and then is estimated to increase for the period December, 2014 –
June, 2015 to $1,323. These increases were funded from central for non-academic units for
general fund only as part of the “As Is” budgeting process.
Retirement
UO offers four retirement plans with four different rates. Unlike the medical rate, which is
an average of all user rates, retirement will continue to be charged to the units at the rate of
each individual’s retirement choice.
The FY15 Personnel Budgeting Application and OPE worksheets calculate retirement based
on a weighted average of actual university employee choices.
THE AVERAGE RETIREMENT RATE FOR FY15 BUDGETING IS 20.41%
OPE-Other Payroll Costs
There are no significant changes to Medicare, Mass Transit, Unemployment, Workers
Comp, or SAIF for FY15. The Social Security maximum taxable earnings is an estimate on a
three-year rolling increase average. To view the history of this charge, go to: Maximum
Taxable Earnings History (Social Security website).
If you wish to view all the rates that are being used for FY15, go to the Personnel OPE BB
Worksheet on the BB website and open the TEMPLATE tab.
If you are not using the Personnel Budgeting Application (PBA), and wish to use different
percent increases, you can use the Personnel OPE BB Worksheet on the BB website.
Download this worksheet and go into the “Template” tab on the far left. You can enter
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General Budgeting Instructions
your own projected changes. All spreadsheets in the workbook will automatically update.
Remember, however, that the OPE Worksheet does not take into account an employee’s
labor distribution nor whether or not they are in an academic or non-academic area, it does
not consider any step increases so you could end up budgeting too much or too little for
OPE. We highly recommend you use the PBA for all personnel budgeting.
Services and Supplies (S&S)
(account codes 2xxxx through 8xxxx)
If you are not sure of any cost increases on specific services or supplies, you may choose to apply the FY15
Standard Rate of Inflation (see above)
DO NOT BUDGET A NEGATIVE AMOUNT FOR SERVICES & SUPPLIES. YOU WILL FALSELY INFLATE YOUR
EXPENDITURE LIMITATION. This practice was dropped several years ago and any existing negative
S&S budget must be corrected. If you anticipate a budget shortfall the issue should be taken up
with your unit’s dean/director or Vice President.
Negative budgeting in account code 28700 for depreciation offset (explained below) is still
allowed for Service Centers and Auxiliaries only.
You may budget at S&S Level 1 or Level 2. See the list at BB Account Codes
Motor Pool Rates
Oregon State University now operates a motor pool at the old State of Oregon Motor Pool
site in Glenwood. You can view the latest Fees and Rates on the OSU website (fuel is
included in the cost of the rental
http://www.oregon.gov/DAS/EAM/FPS/docs/rates_1315.pdf (Oregon State website)
Telecommunications
The latest rates are at: Telecommunications Billing Rates (Telecomm website)
Travel
To check the latest policies and reimbursements on travel, refer to the Business Affairs
Office website. Travel and Transportation Administration and Expenses (BAO website)
Utilities
All units being invoiced for utilities by the Central Power Station should have received an
estimate of their utilities charges for the budget year. If you have not received an estimate,
please contact George Hecht, Associate VP for Campus Operations at ghecht@uoregon.edu
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General Budgeting Instructions
Reserved Parking
Please refer to the Transportation and Parking website, Parking Information. Reserved
Spaces Parking The price listed for a reserved space is in addition to the regular parking
permit for faculty and staff.
Assessments
The account code for overhead assessments is 70002. All previous budgets in 28204 have
been moved to 70002.
Overhead charges
The method for calculating these charges changed in FY14. Please review the information
in the BAO website Here: Overhead Rate Structure - Aux, DO, SC and ASUO Funds |
Business Affairs
Transfers Out
(account codes 92xxx)
Budget for any fund transfers out anticipated in the new fiscal year. Transfers may be
budgeted at the detailed account code level. Please let your Financial Analyst know which
fund(s) will be receiving the Transfer-In. Beginning in FY15 Transfers In and Transfers Out
will no longer be allowed with other UOS institutions.
INFORMATION RELEVANT TO SPECIFIC FUNDS
Knight and Faculty Excellence Chairs
Budgets for Knight and Faculty Excellence endowed chairs are handled by Academic Affairs.
These budgets will NOT appear on the beginning budget in your section.
State Match
(fund codes 008xxx)
Sources for the State Match funds are Transfer In (91xxx). This is a FIXED amount and
CANNOT be increased or decreased. You may adjust the expenditure account codes, but you
may not change the total amount available.
Service Centers and Auxiliaries
(fund codes 09xxxx and 1xxxxx)
Revenue: Auxiliaries and Service Centers must post internal sales and service revenues (those
collected from other university units) to the 09xxx series of account codes and post external
sales and service revenues (those collected from students or outside entities) to the 06xxx series
of account codes.
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General Budgeting Instructions
Depreciation Expenses (account codes 8xxxx): Depreciation is a non-cash operating expense
that must be budgeted on the operating ledger. You will find the depreciation schedule with
estimated FY15 expenses on the BAO website Service Center/Auxiliary Asset Listing. (opens an
Excel file)
Newer capital assets or Construction-in-Progress (C.I.P.) that have been placed in service
during the current fiscal year will probably not be updated on the schedule until after the
budget due date. Units should review the schedule and make their own estimates for any
known or planned assets not yet on the schedule.
To aid in making your estimates, the complete Fixed Assets Accounting Policy no. 55.100 is
available at: Fixed Assets Accounting Policy (OUS website). Very briefly, the University of
Oregon uses straight-line depreciation with zero salvage value, over the estimated useful life
of the asset. Depreciation starts in the month the asset is acquired and ready for use. For
equipment and vehicles this is typically the month the item is purchased/received; for
buildings and other improvements BAO is reviewing their procedures. Please review the BAO
website for the most up-to-date information
For questions about depreciation, contact Molly Lockhart in the Business Affairs office at 63163 or mlockhar@uoregon.edu
F Bond Debt Service: Prior to the formation of the Internal Bank in late FY10, Article XI-F(1)
(aka F bonds) debt service was budgeted and expensed in the ‘transfer-out’ account codes
92xxx.
Academic Units responsible for debt payments (principal and interest) will process a transfer
out Debt Retirement to the University Net Investment of Plant. Therefore, BRP is requesting
units to budget for the debt service payment (principal and interest) in account 92228 –
Transfer out Debt Retirement CO-Inst. and to encumber the full amount of principal
repayment during period 01 of the new fiscal year. If unsure about how to establish an
encumbrance, BAO conducts FIS Encumbrance training. This training is listed on the BAO
web site: Budget and Finance Calendar
Service Centers and Auxiliaries with debt service to the OUS Internal Bank, mostly F-bonds, should
budget as follows:
Interest expense in:
Principal repayment in:
28814 – Interest Expense Internal Bank Loans
28805 – Internal Bank Loan Principle Payment
Service Center and Auxiliary fund payments will still hit both the OPAL and General Ledger.
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General Budgeting Instructions
The F bond debt service amounts by fiscal year (split between principal and interest) can be
found on the amortization schedules posted on the BAO website at: Auxiliary & Service
Center Internal Bank Amortization Schedules.
Reserves: Auxiliaries and service centers are required to set aside funds for building repair
and equipment replacement into designated reserve funds. The reserves are funded by cash
transfers from operating funds to the equipment or building reserve fund. These transfers
occur in the general ledger only and do not appear on the operating ledger. The amount to be
transferred each year is stipulated in the Capital Asset Management Plan (CAMP) for your
unit.
Budgeting for an expense that does not affect cash, and having a cash transfer occur that does
not affect the operating ledger creates a budgeting challenge when trying to prepare a
balanced budget (sources equal uses). Below are three scenarios to help you budget these
transactions.
1. When the CAMP cash transfer equals depreciation expense, the budgeting is
straightforward.
Account
0xxxx Revenues
1xxxx Labor expense
2xxxx S&S expense
80xxx Depreciation
expense
(non-cash)
Budget
$ 750,000
600,000
100,000
50,000
OPAL
$ 750,000
600,000
100,000
50,000
General Ledger
F0002 Fund DeductionReserves
50,000 dr
2. When the CAMP transfer is greater than your depreciation expense for the year, offset the
difference with a positive entry in account code 28700 “Fiscal Management Expense”.
Account
0xxxx Revenues
1xxxx Labor expense
2xxxx S&S expense
80xxx Depreciation
expense
(non-cash)
28700 Fiscal Mgmt expense
Budget
$ 785,000
600,000
100,000
50,000
OPAL
$ 785,000
600,000
100,000
50,000
35,000
General Ledger
F0002 Fund DeductionReserves
85,000 dr
3. When the CAMP transfer is less than your depreciation expense for the year, offset the
difference with a negative entry in account code 28700 “Fiscal Management Expense”.
Beginning Budget FY14
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General Budgeting Instructions
Account
0xxxx Revenues
1xxxx Labor expense
2xxxx S&S expense
80xxx Depreciation
expense
(non-cash)
28700 Fiscal Mgmt expense
Budget
$ 730,000
600,000
100,000
50,000
OPAL
$ 730,000
600,000
100,000
50,000
(20,000)
General Ledger
F0002 Fund DeductionReserves
30,000 dr
BRP CONTACT INFORMATION
If you have any questions about any of these procedures, please contact your Financial Analyst:
Angie Donahue
Tim Finch
Randy Hale
Christian Larson
Tom Szumita
x 7226
x 3247
x 2011
x7665
x 2159
Not sure who your analyst is? click: Responsibility Units and Analysts
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General Budgeting Instructions