New Department Chair Orientation August 16, 2013 Diane Stephens, Associate Vice President Edith Winterhalter, Director of Academic Budget Management Department.

New Department Chair Orientation

August 16, 2013

Diane Stephens, Associate Vice PresidentEdith Winterhalter, Director of Academic Budget Management

Department of Academic Resources and PlanningCalifornia State University, Northridge

BUDGET 101BUDGET 101

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?

http://www.csun.edu/presofc/campusbudgetnews-FAQs.html

University Budget News Website:

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

Source: CSUN Office of Budget Planning and Management

State Appropria-tions65%

Fee Revenue35%

CSUN General Fund Budget2007/08

State Appropriations40%

Fee Revenue60%

Source: CSUN Office of Budget Planning and Management

CSUN General Fund Budget2013/14

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 policieshttp://www-admn.csun.edu/vp/policies/125_admn_fin/300/300-45.pdf

The Decentralized ModelPrinciples

• Communication and Disclosure– ERC Recommendation– College Budget Model– Clarity of Business

Practices– Facilitate Sharing of

Information and Open Communication

• Accountability

• 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 2012/13

• Twenty (20) centrally-funded tenure-track faculty positions for 2014/15

• Ten (10) centrally-funded new staff positions

• Continued scrutiny of staff hiring—Justification for Initiation of Search required

New for 2013/14

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 PRACTICESGenerating 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

FacProg Code

ART 100 10180 1 4 AC210 MW 800 825 29 Wright, Frank Lloyd 4,706$ P 1.9 1.0 0.07 1,882$ 6 35

ART 100 10181 1 4 AC210 MW 1100 1125 40 Olmsted, Frederick 5,188$ P 2.7 1.0 0.07 2,075$ 6 40

ART 100L 10186 2 7 AC210 TR 825 1005 29 Wright, Frank Lloyd 4,706$ P 3.9 2.6 0.17 4,894$ 6 35

ART 100L 10187 2 7 AC210 F 900 1220 32 Wright, Frank Lloyd 4,706$ P 4.3 2.6 0.17 4,894$ 6 35

ART 243 18097 3 7 AC407 TR 1400 1645 28 Hoban, James 3,458$ F 5.6 3.9 0.33 -$ 2 30

ART 244 18098 3 7 AC407 MW 800 1045 25 Hunt, Richard M. 2,757$ F 5.0 3.9 0.33 -$ 2 20

ART 244 18099 3 7 AC407 TR 1100 1345 26 Sullivan, Louis 3,550$ P 5.2 3.9 0.26 5,538$ 2 20

ART 245 18100 3 13 AC407 TR 800 1045 27 Lamb, William 3,822$ P 5.4 3.9 0.26 5,962$ 3 35

ART 250 18148 3 36 AC334 MW 1100 1345 5 Van Alen, William 7,451$ F 1.0 1.7 0.14 -$ 4 15

ART 250 18149 3 36 AC334 MW 1400 1645 10 Lamb, William 3,822$ P 2.0 3.3 0.22 5,096$ 4 25

ART 484 11304 1 36 AC211 W 1600 1650 7 Gilbert, Cass 4,000$ P 0.5 2.3 0.16 3,733$ 1 15

ART 484 11305 1 36 AC211 M 1600 1650 8 Van Alen, William 5,285$ F 0.5 2.7 0.22 -$ 1 5

TOTALS: 266 37.9 33 2.39 34,076$ 310

Subject Catalog

Class Nbr CCU C/S # Room Instructor Base Salary Curr.

Enroll.Proj EnrollDays

Start Time

End TimeFTES

CurrentWTU

CurrentFTEF

Current PTF Expenses

Current

ART 100 10180 1 4 AC210 MW 800 825 29 Wright, Frank LloydART 100 10181 1 4 AC210 MW 1100 1125 40 Olmsted, FrederickART 100L 10186 2 7 AC210 TR 825 1005 29 Wright, Frank LloydART 100L 10187 2 7 AC210 F 900 1220 32 Wright, Frank LloydART 243 18097 3 7 AC407 TR 1400 1645 28 Hoban, James

Subject Catalog

Class Nbr CCU C/S # Room InstructorCurr.

Enroll.Days

Start Time

End Time

Fac

Wright, Frank Lloyd 4,706$ P 1.9 1.0 0.07 1,882$

Olmsted, Frederick 5,188$ P 2.7 1.0 0.07 2,075$

Wright, Frank Lloyd 4,706$ P 3.9 2.6 0.17 4,894$

Wright, Frank Lloyd 4,706$ P 4.3 2.6 0.17 4,894$

Hoban, James 3,458$ F 5.6 3.9 0.33 -$

Instructor Base Salary FTES

CurrentWTU

CurrentFTEF

Current PTF Expenses

Current

SOC Worksheet = Planning + Priorities

Prog Code Program Priorities / Categories FTES % Dept. WTU % Dept. FTEF % Dept. PTF Exp % Dept.1 Required Grad. & U.D. Majors Courses 1 3.0% 7 15.2% 0.47 15.8% 8,000$ 17.4%2 Required L.D. Majors Courses 14 31.3% 12 35.7% 0.91 38.1% 5,538$ 12.0%3 Required Service Courses 7 15.7% 4 11.9% 0.26 10.9% 5,962$ 13.0%4 High Priority Elective Courses - Majors 8 17.9% 13 15.2% 0.97 15.1% 12,740$ 27.7%5 Lower Priority Elective Courses - Majors 0 0.0% 0 0.0% 0.00 0.0% -$ 0.0%6 G.E. Courses 14 32.1% 7 22.0% 0.48 20.1% 13,746$ 29.9%7 Other . . . 0 0.0% 0 0.0% 0.00 0.0% -$ 0.0%

TOTALS 45 43 3.09 45,986$

PROJECTED

Prog Code Program Priorities / Categories1 Required Grad. & U.D. Majors Courses2 Required L.D. Majors Courses3 Required Service Courses4 High Priority Elective Courses - Majors5 Lower Priority Elective Courses - Majors6 G.E. Courses7 Other . . .

TOTALS

Prog Code

ART 100 INTRO ART PROCESS 10180 6 35

ART 100 INTRO ART PROCESS 10181 6 40

ART 100L ART PROCESS LAB 10186 6 35

ART 100L ART PROCESS LAB 10187 6 35

ART 243 INTRO TO TYPE 18097 2 30

ART 244 GRAPHIC DESIGN I 18098 2 20

ART 244 GRAPHIC DESIGN I 18099 2 20

ART 245 GRAPHIC DESIGN I 18100 3 35

ART 250 PHOTOGRAPHY I 18148 4 15

ART 250 PHOTOGRAPHY I 18149 4 25

ART 484 ART ED PORTFOLIO 11304 1 15

ART 484 ART ED PORTFOLIO 11305 1 5

Proj EnrollSubject Catalog

Title Class Nbr

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– [email protected]– Ext. 5929

• Edith Winterhalter– [email protected]– Ext. 4066

• For a copy of this presentation (next week):

http://www.csun.edu/academic.resources/