WEBVTT 00:00:00.000 --> 00:00:04.000 Hi I'm Camarie Campfield the Budget Manager for Western Oregon University. 00:00:04.000 --> 00:00:06.000 Today we will be going over university budget concepts. 00:00:06.000 --> 00:00:11.000 I want to give a special thank you to Linda A. Kosten and Lisa A. Frace from WACUBO 00:00:11.000 --> 00:00:16.000 For their help in the content that is being presented today. 00:00:16.000 --> 00:00:21.000 So the purpose of this training that WOU has adopted a centralized budget process. 00:00:21.000 --> 00:00:23.000 In the past this was managed more centrally. 00:00:23.000 --> 00:00:28.000 Beginning in April this last year we started shifting out the responsibilities to our individual departments. 00:00:28.000 --> 00:00:30.000 This training's to help you with that transition. 00:00:30.000 --> 00:00:34.000 The difference is that departments now have control over their entire budget. 00:00:34.000 --> 00:00:38.000 Before you kind of just had control over your s and s and your student pay 00:00:38.000 --> 00:00:40.000 Which are a really small fraction of the budgetary funds. 00:00:40.000 --> 00:00:44.000 Now we're giving everything to you which includes personnel expense. 00:00:44.000 --> 00:00:49.000 So with that becomes a big responsibility an exciting responsibility with a lot of opportunities 00:00:49.000 --> 00:00:51.000 But we want to make sure you feel prepared for that. 00:00:51.000 --> 00:00:56.000 This self paced training that you can watch at your own time frame when it's convenient for you. 00:00:56.000 --> 00:00:60.000 We do ask that you have the training watched before we meet one on one. 00:01:00.000 --> 00:01:05.000 After this I'm taking requests as they come up for people to individually meet with me 00:01:05.000 --> 00:01:12.000 So that we can go over specific questions you have or concerns you might have about managing your budget and what it looks like for you. 00:01:12.000 --> 00:01:17.000 So the agenda of the things we are going to be covering today we are going to start off with the basics. 00:01:17.000 --> 00:01:20.000 We are just going to be going over what is a budget. 00:01:20.000 --> 00:01:24.000 Reads slide 00:01:24.000 --> 00:01:28.000 They're different and it's kind of a confusing grey overlap I know that. 00:01:28.000 --> 00:01:32.000 I mean the budget office on campus is different than business office services questions. 00:01:32.000 --> 00:01:37.000 But we are always fielding questions for one another because the differences between the two aren't the most clear thing. 00:01:37.000 --> 00:01:40.000 We're also going to be going over how budgets fit into the world of finance. 00:01:40.000 --> 00:01:42.000 Which is kind of the big picture why we do it. 00:01:42.000 --> 00:01:47.000 Reads slide. Where we get our money from as an institution. 00:01:47.000 --> 00:01:50.000 Reads slide. How we spend that money that we get. 00:01:50.000 --> 00:01:56.000 And then the resource duration and designations. These are all important things. 00:01:56.000 --> 00:01:58.000 To start it off we talk about finance. 00:01:58.000 --> 00:01:61.000 So that's the umbrella under which accounting and budgeting live. 00:02:01.000 --> 00:02:04.000 And when we talk about accounting we're really talking about the past. 00:02:04.000 --> 00:02:10.000 And that's how we record everything that's been happening. How we keep documentation on all of our expenses and our revenues. 00:02:10.000 --> 00:02:16.000 So it's recording analysis reporting audits. All of those things that are looking historically. 00:02:16.000 --> 00:02:19.000 When we talk about budgeting it's really all about the future. 00:02:19.000 --> 00:02:24.000 It's a plan. Information gathering modeling discussions decisions. 00:02:24.000 --> 00:02:28.000 It's really how we're going to continue to operate into the future. 00:02:28.000 --> 00:02:31.000 You'll notice the arrow that says the resource flow. 00:02:31.000 --> 00:02:38.000 This is because when we're budgeting we take into consideration our revenues and we plan on how and where they are going to fit. 00:02:38.000 --> 00:02:42.000 And then when we account for those we do that according to how we budgeted for them. 00:02:42.000 --> 00:02:47.000 So it kind of all wraps up into one big picture under the umbrella of finance. 00:02:49.000 --> 00:02:52.000 So a budget serves multiple purposes. 00:02:52.000 --> 00:02:56.000 We don't just do it for fun because it might not be the most fun thing in the world. 00:02:56.000 --> 00:02:60.000 But we do it for a reason. So it's. Reads slide. 00:03:00.000 --> 00:03:05.000 It's a plan. And it's a tool for the allocation of current and anticipated financial resources. 00:03:05.000 --> 00:03:10.000 I would be really difficult to operate if we didn't know how much money we were anticipating on getting. 00:03:10.000 --> 00:03:13.000 It's also a reflection of organizational values and priorities. 00:03:13.000 --> 00:03:16.000 We talk a lot about our strategic plan here on campus. 00:03:16.000 --> 00:03:20.000 The goal for budgeting is to have our budget aligned with the strategic plan. 00:03:20.000 --> 00:03:24.000 It's kind of that saying of putting your money where your mouth is. 00:03:24.000 --> 00:03:29.000 It's one thing to talk the talk but we really can kind of walk the walk with through our budget allocation. 00:03:29.000 --> 00:03:34.000 It's a means to promote good management an instrument to monitor progress and funds usage. 00:03:34.000 --> 00:03:38.000 It's really hard to tell how you are doing if you don't have anything to compare it to. 00:03:38.000 --> 00:03:45.000 And so we set our budgetary revenues and enrollment goals and all of those things so we know if we are meeting our goals. 00:03:45.000 --> 00:03:46.000 It's also a method of communication. 00:03:46.000 --> 00:03:51.000 You can tell a lot by a university what its priorities are based on how we're spending our money. 00:03:51.000 --> 00:03:53.000 It's kind of where it all comes down to. 00:03:55.000 --> 00:03:57.000 We really want to shift that understanding of budgets. 00:03:57.000 --> 00:03:63.000 In the past there's kind of this conception that budget is just thought about as this big mystery bag of money. 00:04:03.000 --> 00:04:07.000 And sometimes you get the funds and sometimes you don't and it kind of depends on who you know and things like that. 00:04:07.000 --> 00:04:12.000 And that is not at all how we want budgeting to be seen and we really want it to be seen as a roadmap. 00:04:12.000 --> 00:04:17.000 It's supposed to be strategic. We really want to use our funds that we're getting strategically. 00:04:17.000 --> 00:04:21.000 And planning on how we're going to use that budget funds to get us to where we want to be 00:04:21.000 --> 00:04:26.000 Whether it's growing enrollment or programs or different things like that. 00:04:26.000 --> 00:04:28.000 So higher education terminology. 00:04:28.000 --> 00:04:32.000 And some of you might be more familiar with accounting some of you might not. 00:04:32.000 --> 00:04:36.000 Accounting is kind of a beast in and of itself with its own unique jargon. 00:04:36.000 --> 00:04:42.000 But in higher ed we make it even more complicated and really use unique terms just to us. 00:04:42.000 --> 00:04:45.000 So starting with that for financing we talk about net assets. 00:04:45.000 --> 00:04:49.000 In the typical corporate world that would be talking about your owner's equity. 00:04:49.000 --> 00:04:53.000 Kind of how much your company has in the bank in a certain sense. 00:04:53.000 --> 00:04:57.000 But in higher ed we call it our net assets. We also call it our debt. 00:04:57.000 --> 00:04:61.000 That's our liabilities. It's how much we owe but we we don't call them our liabilities. 00:05:01.000 --> 00:05:04.000 Investments our property plant and equipment. 00:05:04.000 --> 00:05:08.000 That's things like furniture, building. Your assets. 00:05:08.000 --> 00:05:11.000 Operations. We do use the normal terminology for that at least. 00:05:11.000 --> 00:05:13.000 So revenues and expenses are pretty standard. 00:05:13.000 --> 00:05:19.000 One thing I do want to point out for expenses though is that that's where our people expense belongs. 00:05:19.000 --> 00:05:24.000 I was talking to someone and they were like well Camarie where do the people belong in this? And it's an expense. 00:05:24.000 --> 00:05:26.000 Personnel falls under that category. 00:05:26.000 --> 00:05:31.000 So if you take your revenues less your expenses for the year the difference of that is your fund balance. 00:05:31.000 --> 00:05:34.000 Again in the corporate world we would call that our profit or a loss. 00:05:34.000 --> 00:05:39.000 But in higher ed we're a non profit organization so we don't refer to it as that. 00:05:39.000 --> 00:05:43.000 And then you'll note the arrow too that feeds from fund balance back into our net assets. 00:05:43.000 --> 00:05:46.000 That's how it works when the books close. We take our balance from the year 00:05:46.000 --> 00:05:52.000 And it either increases our net assets or it decreases our net assets accordingly. 00:05:52.000 --> 00:05:58.000 So one important note here that applies more to some of our indices than others 00:05:58.000 --> 00:05:63.000 Is when we talk about our operating expenses we're typically just talking about a year. 00:06:03.000 --> 00:06:08.000 So our revenue and our expenses what would typically feed to like an income statement. 00:06:08.000 --> 00:06:11.000 But there's sometimes some weird overlap in the world of accounting. 00:06:11.000 --> 00:06:16.000 So things like debt payments when we have an obligation to pay off a liability. 00:06:16.000 --> 00:06:18.000 We are making that payment every year. 00:06:18.000 --> 00:06:24.000 And even though the debt is sitting on our balance sheet the payment is actually coming out of our operating activities. 00:06:24.000 --> 00:06:27.000 So this will apply more to things like auxiliaries. Our student health center. 00:06:27.000 --> 00:06:29.000 Things like that that are of actively paying debt. 00:06:29.000 --> 00:06:35.000 For those of you that are more part of our E and G budget you probably won't see these things but I did want to point it out. 00:06:37.000 --> 00:06:41.000 So classifications. In higher ed we need to know certain things about our money. 00:06:41.000 --> 00:06:46.000 It kind of dictates how we can use our money. So for revenues we need to know the sources. 00:06:46.000 --> 00:06:49.000 Where is our money coming from? As well as the restrictions. 00:06:49.000 --> 00:06:54.000 Some money has certain restrictions on it that we can't spend on certain things. 00:06:54.000 --> 00:06:60.000 We kind of talk about our expenses in two different ways. We use natural classifications and functional classifications. 00:07:00.000 --> 00:07:03.000 And in the next slides I am going to get down into the details on all of these levels. 00:07:03.000 --> 00:07:06.000 And then regarding both our revenues and our expenses 00:07:06.000 --> 00:07:11.000 We need to know fungibility which is similar to flexibility is what it means 00:07:11.000 --> 00:07:16.000 And about the duration of those funds. So getting into the revenue sources. 00:07:18.000 --> 00:07:22.000 So we have several sources of our revenue. Tuition is our primary source. 00:07:22.000 --> 00:07:25.000 It makes up about 60 percent of our E and G budget. 00:07:25.000 --> 00:07:28.000 Tuition gets paid by multiple different people. 00:07:28.000 --> 00:07:34.000 It can be the students themselves, families, third party, employers, their loans. 00:07:34.000 --> 00:07:38.000 Next is appropriations so our HECC funding model. 00:07:38.000 --> 00:07:41.000 And then we'll go down into the details of that in the next slide. 00:07:41.000 --> 00:07:47.000 Research support. We get federal government, state and local grants. Those have a lot of restrictions surrounding them. 00:07:47.000 --> 00:07:50.000 Private support. Things like donors and sponsorships. 00:07:50.000 --> 00:07:57.000 Auxiliary income. Our housing, dining, our parking, our bookstores all of that is what we call auxiliary. 00:07:57.000 --> 00:07:62.000 Sales and services. Things from conferences or ticket sales for like the Smith Fine Arts Series 00:08:02.000 --> 00:08:08.000 And our medical center with the student health center those all count as sales and service revenue. 00:08:08.000 --> 00:08:13.000 And interest income. So not just through our endowments and our investments but also through just our cash balance on hand. 00:08:13.000 --> 00:08:16.000 We're earning interest on those dollars. 00:08:16.000 --> 00:08:23.000 So the HECC Student Success and Completion Model is how the state determines how much money to give to us. 00:08:24.000 --> 00:08:28.000 There's kind of three different components that makes up that determination. 00:08:28.000 --> 00:08:32.000 So the first is the Mission Differentiation Funding Allocation. You'll see a lot of notes there. 00:08:32.000 --> 00:08:37.000 But really what it comes down to is that they've set aside specific money that supports specific things. 00:08:37.000 --> 00:08:41.000 So things like our e tech funding and our computer science funding 00:08:41.000 --> 00:08:48.000 That gets set aside from the beginning out of the HECC funding dollars and goes towards those important missions. 00:08:48.000 --> 00:08:52.000 I mean they're doing this allocation for all seven public universities. 00:08:52.000 --> 00:08:58.000 So the first thing that they do is take that Mission Differentiation Funding out of the big pot of money that they're appropriating 00:08:58.000 --> 00:08:61.000 And set those funds aside to the universities. 00:09:01.000 --> 00:09:06.000 Next is the Outcomes Based Allocation which you'll see there a long description of what that is. 00:09:06.000 --> 00:09:10.000 But what it really is is how many students are we graduating? The simplified version. 00:09:10.000 --> 00:09:16.000 And the same for Activity Based Allocation. That's simply how many student credit hours we have. 00:09:16.000 --> 00:09:21.000 In the past we were 100 percent funded through the Activity Based Allocation model 00:09:21.000 --> 00:09:24.000 Which meant that our funding was really based on how many student credit hours we had. 00:09:24.000 --> 00:09:29.000 But the HECC has been transitioning this more focused on how many students we graduate. 00:09:29.000 --> 00:09:33.000 So currently that allocation is 60 percent based on how many graduates we have 00:09:33.000 --> 00:09:36.000 And 40 percent based on our student credit hours. 00:09:36.000 --> 00:09:43.000 We are so focused on retention and really graduating our students and setting them up for success is because our funding depends on it. 00:09:44.000 --> 00:09:48.000 So some funds have more restrictions than others and we have to comply with those restrictions. 00:09:48.000 --> 00:09:52.000 And it's kind of confusing sometimes to know which is what. 00:09:52.000 --> 00:09:55.000 And you'll see on here I have unrestricted largely. 00:09:55.000 --> 00:09:59.000 That's because it's not all or nothing. It's kind of one of those gray areas. 00:09:59.000 --> 00:09:64.000 But for the most part when it comes to our tuition, our state appropriations and our sales and services 00:10:04.000 --> 00:10:10.000 We can determine how we're going to spend those money. That means that they're don't have restrictions on them. 00:10:10.000 --> 00:10:13.000 Restricted. Federal research 100 percent is restricted. 00:10:13.000 --> 00:10:18.000 There's all sorts of rules surrounding our grants and how we can spend those money that are very specific. 00:10:18.000 --> 00:10:23.000 Our gifts. You'll note the little asterisk. That's because it depends on the gift. 00:10:23.000 --> 00:10:26.000 So a lot of times our donors are giving us money 00:10:26.000 --> 00:10:31.000 And they're saying that I want this to go towards a scholarship or towards helping build this building and things like that. 00:10:31.000 --> 00:10:34.000 If that's the case then it's a restricted gift. 00:10:34.000 --> 00:10:39.000 However sometimes donors just give us a gift and they don't tell us anything. 00:10:39.000 --> 00:10:45.000 And in that case then it falls into the unrestricted category. So it's kind of one of those gray areas. 00:10:45.000 --> 00:10:49.000 Course fees. We also have rules surrounding our course fees and how those can be spent. 00:10:50.000 --> 00:10:56.000 So for expenses. We talk about them in two different ways. We have natural and functional classifications. 00:10:56.000 --> 00:10:60.000 Natural classifications are really just kind of: what expenses are they? 00:11:00.000 --> 00:11:04.000 So you'll see through the list there's. Reads slide. 00:11:04.000 --> 00:11:09.000 Which is also what we often refer to as OPE, other payroll expenses. 00:11:09.000 --> 00:11:13.000 But that's things like your health insurance your retirement your FICA. 00:11:13.000 --> 00:11:16.000 Reads slide. 00:11:16.000 --> 00:11:18.000 Reads slide. 00:11:18.000 --> 00:11:22.000 All of these different categories are what we call the natural classifications. 00:11:24.000 --> 00:11:26.000 So then we get into our functional classifications. 00:11:26.000 --> 00:11:33.000 So rather than talking about kind of what the expenses are these classifications are what the expenses support. 00:11:33.000 --> 00:11:39.000 So these different categories are. Reads slide. 00:11:39.000 --> 00:11:44.000 Reads slide. 00:11:44.000 --> 00:11:49.000 Reads slide. 00:11:49.000 --> 00:11:54.000 So you'll see on the pie chart there that is our fiscal year 19 E and G budget. 00:11:54.000 --> 00:11:59.000 And how it is allocated amongst all of those different functional classifications. 00:11:59.000 --> 00:11:61.000 And you'll note that instruction is the biggest piece of the circle 00:12:01.000 --> 00:12:08.000 Which makes sense because we're a higher ed university. Instruction is our primary goal. 00:12:09.000 --> 00:12:15.000 So fungibility. Funds can be more or less fungible depending on our designations or the source. 00:12:15.000 --> 00:12:20.000 So some activities are supported by designated funds which means that they're not very flexible. 00:12:20.000 --> 00:12:23.000 You kind of have to spend them the way that they are set up to be. 00:12:23.000 --> 00:12:30.000 So things like faculty development that is set aside through our CBA contract that has to go towards supporting faculty development. 00:12:30.000 --> 00:12:36.000 Our student aid. The money that we get from the feds and loans and grants that has to go towards student aid. 00:12:36.000 --> 00:12:41.000 Research again with those grants that have a lot of laws and regulations surrounding them. 00:12:41.000 --> 00:12:47.000 Building renovation. When we earmark money for buildings then that money needs to go into supporting that mission. 00:12:47.000 --> 00:12:50.000 And our IFC. Our student Incidental Fee Committee dollars. 00:12:50.000 --> 00:12:53.000 We have an entire committee that dictates where those dollars need to go. 00:12:53.000 --> 00:12:56.000 So all that means is that when you have these kinds of funds that you're managing, 00:12:56.000 --> 00:12:61.000 You don't have a lot of flexibility. You can't really change what they're supposed to be spent on. 00:13:01.000 --> 00:13:05.000 On the other hand we have things that are undesignated 00:13:05.000 --> 00:13:07.000 Which means that it's kind of up to you. 00:13:07.000 --> 00:13:13.000 So things like instruction dollars or employee personnel dollars in general in your indices 00:13:13.000 --> 00:13:16.000 Office support like your S and S budget 00:13:16.000 --> 00:13:18.000 Technology and auxiliary services. 00:13:18.000 --> 00:13:22.000 It's really up to you to manage those funds and determine the best use. 00:13:22.000 --> 00:13:28.000 So if you had an S and S budget and you weren't using all of that but you really needed more student pay 00:13:28.000 --> 00:13:32.000 That's something that would be fungible and would allow you to make that determination 00:13:32.000 --> 00:13:39.000 That we're gonna take the two thousand dollars that we have left over and use it towards paying more students so that we can get what's needed done 00:13:41.000 --> 00:13:43.000 So it's important to be aware of our timing and duration. 00:13:43.000 --> 00:13:47.000 You may have heard me talk about one time versus recurring. 00:13:47.000 --> 00:13:50.000 It's an ongoing thing that we're really trying to push the knowledge out. 00:13:50.000 --> 00:13:52.000 So you'll see our lovely grid here with our pictures. 00:13:52.000 --> 00:13:57.000 So for revenues things that are recurring that picture is supposed to represent our tuition dollars. 00:13:57.000 --> 00:13:63.000 So these are things that year after year, term after term, we're gonna continue getting new sources of revenue through our tuition dollars. 00:14:03.000 --> 00:14:07.000 Our expenses. Our stereotypical picture of a professor what they might look like. 00:14:07.000 --> 00:14:10.000 It's our people. Our people are recurring expenses too. 00:14:10.000 --> 00:14:13.000 Every month we have to pay our payroll. It's not just a one time thing. 00:14:13.000 --> 00:14:18.000 When we are committing to hiring someone we're committing to that longterm arrangement. 00:14:18.000 --> 00:14:22.000 Fund balance. You'll note the big X there. That's because fund balance is not ever recurring. 00:14:22.000 --> 00:14:25.000 It's a one time set of money. 00:14:25.000 --> 00:14:28.000 So on our one time examples we have things like gifts. 00:14:28.000 --> 00:14:34.000 It's that revenue that you can't count on ever getting again. It's truly just a one time opportunity. 00:14:34.000 --> 00:14:37.000 And maybe they will give again but you can't depend on that. 00:14:37.000 --> 00:14:41.000 Expenses. So furniture or things like conferences and travel. 00:14:41.000 --> 00:14:45.000 It's those things that you only need to commit to one time. 00:14:45.000 --> 00:14:49.000 So when it comes to managing your budget if you have leftover in your S and S 00:14:49.000 --> 00:14:53.000 And you're thinking like oh great like we can invest this in something to really make a difference. 00:14:53.000 --> 00:14:56.000 It's important that you're doing that on one time things. 00:14:56.000 --> 00:14:59.000 If you have leftover money in your budget if you use that to hire someone 00:14:59.000 --> 00:14:64.000 That's gonna be a recurring expense that you're not gonna have the budget to fund over and over again. 00:15:04.000 --> 00:15:08.000 Knowing this difference between one time and recurring is really important. 00:15:08.000 --> 00:15:11.000 So then on our one time for our fund balance you'll note our piggy bank. 00:15:11.000 --> 00:15:18.000 So that's really our savings. It's what's set aside for a rainy day. Once we use those they're gone so we can ever count on them again. 00:15:21.000 --> 00:15:24.000 This whole training was really to be big picture. 00:15:24.000 --> 00:15:30.000 But I know that a lot of you all have shared complications that are gonna come across from campus so I wanted to touch on those. 00:15:30.000 --> 00:15:34.000 This is what I'm talking about with later setting up a one on one training if you would like. 00:15:34.000 --> 00:15:40.000 If you have anything in your budget that you really don't know how to handle or how to tackle feel free to set that training up with me. 00:15:40.000 --> 00:15:46.000 These are really just gonna be kind of the tip of the iceberg on specific examples that are gonna come up when you're managing your budget. 00:15:46.000 --> 00:15:49.000 So the first one that's kind of a hot topic is vacant positions. 00:15:49.000 --> 00:15:57.000 What do you do when you have a vacancy? Because you were funded for that vacant position for the year so how are you gonna handle that? 00:15:57.000 --> 00:15:62.000 So the first thing that you really need to figure out is, okay what are my obligations? 00:16:02.000 --> 00:16:06.000 I had this person leave now what are my expenses gonna be? 00:16:06.000 --> 00:16:13.000 So vacation. If they had any accrued vacation that payout is going to come out of your index and be an expense to you. 00:16:13.000 --> 00:16:19.000 Sick leave. I got that question. That doesn't get paid out. That just goes away when someone leaves the university. 00:16:19.000 --> 00:16:24.000 Recruitment expense. So if you're gonna be posting an ad or bringing people to campus 00:16:24.000 --> 00:16:27.000 All of that costs money and it's also gonna be coming out of your budget. 00:16:27.000 --> 00:16:32.000 And temporary replacement expense. So if you have a vacancy for a long time and you need to get a temp in there 00:16:32.000 --> 00:16:36.000 That will also be an obligation to come out of these funds. 00:16:36.000 --> 00:16:41.000 So on the flip side you know okay so I've got all of these obligations that are pulling at this money. 00:16:41.000 --> 00:16:44.000 How much money do I even have? 00:16:44.000 --> 00:16:50.000 So I would do that through running a couple of banner reports and then comparing it to what was budgeted. 00:16:50.000 --> 00:16:55.000 But again when you're dealing with this if you would like to walk through just contact me and we'll set up a one on one meeting. 00:16:55.000 --> 00:16:60.000 So course fees. This is another really big hot topic with the moratorium this year. 00:17:00.000 --> 00:17:06.000 So it is different than in the past years. We have changed all of the course fee indices on campus. 00:17:06.000 --> 00:17:11.000 Before they all kind of fed up into what we referred to as the black hole of the general fund budget. 00:17:11.000 --> 00:17:15.000 Meaning that they all had the general fund tied behind it. 00:17:15.000 --> 00:17:19.000 Now each course fee has its own unique index. 00:17:19.000 --> 00:17:24.000 What that allows us to do is that the funds will automatically carry over from year to year. 00:17:24.000 --> 00:17:27.000 So in the past there kind of was this big push. 00:17:27.000 --> 00:17:33.000 You would get your Spring term revenues in from your course fees and you would have to spend them by June 30th. 00:17:33.000 --> 00:17:37.000 Which isn't very much time and it kind of would be a mad frenzy. 00:17:37.000 --> 00:17:43.000 So what we're really hoping with this change in our processes is that now you're allowed to carry them over from year to year. 00:17:43.000 --> 00:17:48.000 And we're hoping that that can mean more thoughtful decisions on how those dollars are spent. 00:17:48.000 --> 00:17:50.000 Because we really care about affordability here. 00:17:50.000 --> 00:17:56.000 One of our biggest things that's affecting our student's affordability is all of the fees we tack on to the tuition course fees included. 00:17:56.000 --> 00:17:60.000 So we're hoping by changing this that we might be able to reduce some of our course fees that are out there. 00:18:00.000 --> 00:18:07.000 A big change with changing the fund too is that you are no longer just given a budget and told to stay underneath that. 00:18:07.000 --> 00:18:10.000 It's gonna depend on what your actual earnings are. 00:18:10.000 --> 00:18:16.000 So we do load a budget into your expense category as just a prediction so that's based on a historical figure. 00:18:16.000 --> 00:18:19.000 However if we loaded a budget of 10,000 00:18:19.000 --> 00:18:24.000 but in your revenues you've only earned 5,000 you only have 5,000 dollars to spend. 00:18:24.000 --> 00:18:28.000 So monitoring that based on your actuals not just a budget will be the change. 00:18:28.000 --> 00:18:30.000 And I'm happy again to meet with you to go over that. 00:18:30.000 --> 00:18:33.000 Unexpected major expenses. I've gotten this question a lot too. 00:18:33.000 --> 00:18:40.000 So what's gonna happen? Like what if we have some horrible thing come up or some piece of equipment breaks and we have to replace it? 00:18:40.000 --> 00:18:43.000 Like we don't have the flexibility in our budget to handle that. 00:18:43.000 --> 00:18:47.000 So the hope behind this is that you'll be able to push it to a higher level. 00:18:47.000 --> 00:18:50.000 We have many small departments that are working with a really small budget. 00:18:50.000 --> 00:18:56.000 And it's totally accurate if something major were to come up they wouldn't have the flexibility to be able to manage that. 00:18:56.000 --> 00:18:63.000 However they'll either report up to a Dean or a VP or someone who has oversight of a lot more indices. 00:19:03.000 --> 00:19:08.000 And in that they will have flexibility. It's kind of that whole Robin Hood theory. 00:19:08.000 --> 00:19:11.000 They're gonna have to manage the big picture of all of the different departments. 00:19:11.000 --> 00:19:16.000 And sometimes they're gonna have to take from the rich to give to the poor to make sure we all come out okay at the end. 00:19:16.000 --> 00:19:23.000 If your person that you report to can't help you with that you can always come back to us in the budget office too and we can help problem solve. 00:19:24.000 --> 00:19:30.000 Budget rollover. So the process around this was somewhat of confusion this year so I just wanted to lay it out. 00:19:30.000 --> 00:19:35.000 The idea is that requests will filter up to the VP or the Dean level. 00:19:35.000 --> 00:19:40.000 So they'll look at their department as a whole and decide which requests for carryover to forward along. 00:19:40.000 --> 00:19:43.000 They will mock up a memo to the President. 00:19:43.000 --> 00:19:49.000 In that memo they should be addressing how much is the request for, how much is available from prior budget. 00:19:49.000 --> 00:19:53.000 If you don't actually have any excess budget from the prior year 00:19:53.000 --> 00:19:58.000 Then there's no real rollover to be requesting in the first place. And then what's the purpose for those funds? 00:19:58.000 --> 00:19:62.000 Once the fiscal year is over we'll evaluate where the university is as a whole. 00:20:02.000 --> 00:20:07.000 So if it's been a rough year and we don't have much rollover and we're kind of looking down 00:20:07.000 --> 00:20:11.000 Then it's not as likely that rollover requests are gonna be approved. 00:20:11.000 --> 00:20:15.000 But other years it'll be a good year and we will have a healthy fund balance. 00:20:15.000 --> 00:20:19.000 And we'll take all of that into consideration and then Dr. Fuller will make the final decisions. 00:20:19.000 --> 00:20:23.000 Once he does that I will get those loaded into Banner through a budget adjustment. 00:20:23.000 --> 00:20:29.000 So as you might have noticed in this year currently just the initial adopted board budget is loaded right now. 00:20:29.000 --> 00:20:34.000 Any of those rollover and adjustments that are coming will be through a separate entry in Banner. 00:20:35.000 --> 00:20:41.000 Budget JVs. So back in the beginning when I was talking about the differences between budgeting and accounting 00:20:41.000 --> 00:20:44.000 This plays into the difference between budgeting and actual JVs. 00:20:44.000 --> 00:20:49.000 They are different. So a budget JV is affecting the budgeted amounts. 00:20:49.000 --> 00:20:53.000 Whereas an actual JV is affecting what really has happened. 00:20:53.000 --> 00:20:57.000 So actual JVs are when you're trying to change where an expense sits. 00:20:57.000 --> 00:20:62.000 Budget JVs are when you're trying to change the funding for an expense. 00:21:02.000 --> 00:21:08.000 So if you have extra savings in personnel because someone had left and you had vacancy 00:21:08.000 --> 00:21:14.000 And you want to take those 5,000 dollars and move them down into your S and S because you're planning on sending someone to a conference. 00:21:14.000 --> 00:21:18.000 You would switch of funds through a budget JV. 00:21:18.000 --> 00:21:23.000 It's not necessary as you'll see. So all that we care about from the budget office perspective 00:21:23.000 --> 00:21:26.000 Is that as a total you're under budget. 00:21:26.000 --> 00:21:30.000 So I'm going to be looking at your bottom line and making sure that you haven't overspent your budget. 00:21:30.000 --> 00:21:33.000 I'm not going to be looking within the different categories. 00:21:33.000 --> 00:21:38.000 So even though it's not necessary some people think it's still helpful which I totally understand. 00:21:38.000 --> 00:21:40.000 Otherwise you're gonna have to kind of keep a mental note of like 00:21:40.000 --> 00:21:46.000 Oh yes I've got that extra 5,000 dollars up in personnel but I've actually spent it down in S and S. 00:21:46.000 --> 00:21:48.000 And kind of keep all of that history in your head. 00:21:48.000 --> 00:21:54.000 So doing budgetary JVs for that can be beneficial but it's totally up to you and your individual department's call. 00:21:54.000 --> 00:21:58.000 Whatever you feel is best for you is how we want to handle it. 00:21:58.000 --> 00:21:60.000 With that being said though I'm still happy to do them. 00:22:00.000 --> 00:22:03.000 So if you're a smaller department or you don't feel like you can take that on 00:22:03.000 --> 00:22:09.000 All you need to do is email me your request with the index, the account, and the amount and then a short reason 00:22:09.000 --> 00:22:12.000 Just so that I can put that as part of JV 00:22:14.000 --> 00:22:17.000 If you have any questions please feel free to contact me. 00:22:17.000 --> 00:22:21.000 You can either email me or call me or come by my office in the Admin building. 00:22:21.000 --> 00:22:27.000 It's really how I view my role on campus is to be a resource to all of you and helping you manage your budget. 00:22:27.000 --> 00:22:29.000 So please don't hesitate to contact me. 00:22:29.000 --> 00:22:33.000 Thank you for watching this training and I really hope that it's been a benefit to you.