Pittsburg State University Supervisory Training Management Level Supervisors

1
Pittsburg State UniversitySupervisory
TrainingManagement Level Supervisors

• Budgeting 101
• Michele Sexton, Director of Budget Human
  Resource Services
• 620-235-4188 (msexton_at_pittstate.edu)
• Lauren Werner, Assistant Director of Budget
• 620-235-4105 (lwerner_at_pittstate.edu)
• 204 Russ Hall
• (August 3, 2011)

2
Important Terms

• Allotment System A procedure under which
  appropriated funds are allocated periodically to
  agencies when resources appear insufficient to
  cover appropriations. The system, authorized by
  KSA 75-3722, is intended to assure that
  expenditures do not exceed available resources
  during a fiscal year.
• Appropriation A specified amount of money for a
  particular purpose that an agency is authorized
  to spend during a fiscal year. Generally, the
  entire amount is available at the start of the
  fiscal year.

3
Important Terms

• Budget Programs
• Instruction (2010) Colleges of Arts Sciences,
  Business, Education and Technology and Continuing
  and Graduate Studies
• Academic Support (2040) Academic
  administration Library Services Teaching,
  Learning Technology Information Systems
• Institutional Support (0160) Presidents
  Office Provost Vice President for
  Administration Campus Life Vice President for
  University Advancement, Business Office Budget
  Human Resource Services Analysis, Planning
  Assessment Alumni Relations, Public Relations
  Printing Postal Services
• Research (2100) sponsored research projects
• Public Service (2230) services provided to the
  general community, including non-credit producing
  workshops and conferences.
• Student Support (2050) Campus Life Enrollment
  Management Student Success Registrar
  Admission Testing Services Student Financial
  Assistance Career Services Intercollegiate
  Athletics
• Physical Plant (9670) Physical Plant
  Facilities Planning University Police
• Student Aid (3080) -- Scholarships
• Auxiliary Enterprises (3791) University
  Housing Parking Student Health
• Service Clearing (9393) Duplicating Printing
  Services Instructional Media Services Motor
  Carpool, Telephone Services
• Debt Service (9894) Expenditures from bond
  funds
• Capital Improvements (9999) Construction,
  Repair Replacement Costs

4
Important Terms

• Expenditure Categories Classifications for
  goods and services purchased by the state
  agencies Primary among these are the following
• Salaries and Wages Payment to state officers
  and employees for their personal services, and
  the states costs for employee benefits such as
  FICA, retirement contributions, workers
  compensation, unemployment insurance, the state
  leave payment assessment, and health insurance.
• Contractual Services Payments for various
  services including communications, travel,
  utilities, and consultant services.
• Commodities Payments for consumable materials,
  supplies, and parts used in the operation of the
  agency.
• Capital Outlay Expenditure for items having a
  normal life of more than one year, such as office
  equipment, machinery, furniture and motor
  vehicles.
• Operating Expenditures An expenditure summary
  category incorporating all agency expenditures,
  except capital improvements.
• Debt Service Payments of the interest and
  principal included in agency budgets on various
  forms of debt financing, including bonded
  indebtedness, PMIB loans, master lease, Facility
  Conservation Improvement Program, third-party and
  other miscellaneous debt.
• Non-Expense Items Disbursement such as refunds,
  advances and investments which do not represent
  government cost.
• Capital Improvements Cash or debt service
  principal payments for construction of highways,
  buildings or other facilities, remodeling and
  additions to existing structures, rehabilitation
  and repair projects, razing of structures, and
  the purchase or improvement of land.

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Important Terms

• Finance Council A state organization empowered
  to act on certain matters of legislative
  delegation, usually when the Legislature is not
  in session. The Council comprises the Governor
  (chair), President of the Senate, Speaker of the
  House of Representatives, Majority and Minority
  Leaders of each chamber, and the Chairpersons of
  the Senate Ways and Means and House
  Appropriations Committees.
• Fiscal Year The state fiscal year runs from
  July 1 to the following June 30 and is numbered
  for the calendar year in which it ends. The
  actual fiscal year is the year which concluded
  the previous June. The current fiscal year is
  the one which ends the coming June. The budget
  year refers to the next fiscal year, which
  begins the July following the Legislatures
  adjournment. Out-years refers to the years
  beyond the budget year.
• FY 2012 July 1, 2011 through June 30, 2012
• Payroll/Appointment Dates (June 12, 2010 through
  June 9, 2012)

6
Important Terms

• Funds Basic units of classification in both the
  budget process and the accounting system for
  agency monies. Monies in a fund may be used for
  a specific purpose as provided by law. Each fund
  is maintained in accordance with
  generally-accepted accounting principles with a
  self-balancing set of accounts recording all
  resources together with all related obligations,
  reserves, and equities. The major funds of PSU
  include the following
• State General Fund (SGF) A fund for revenues
  not earmarked or dedicated for special purposes.
  It is used to finance governmental operations not
  provided by other funds. The principal revenue
  source for the State of Kansas State General Fund
  include individual and corporate income taxes,
  sales and compensating use taxes, severance and
  other excise taxes, and interest earnings.
• General Fees Fund (GF) Tuition revenue
• General Use (GU) - State General Fund and General
  Fees
• Restricted Fee Funds (RF)
• Local Funds
• Clearing Funds
• Auxiliary Funds
• Foundation Funds

7
Important Terms

• MEGA Appropriations Bill Legislation which
  includes appropriations for all state agencies.
  Appropriation bills are effective for one year,
  unlike substantive statutes, which are effective
  on a permanent basis until amended or repealed.
  The MEGA bill contains supplemental
  appropriations and adjustments to the current
  fiscal year, appropriations for operating budgets
  for the upcoming fiscal year, and appropriations
  for capital improvements for the forthcoming
  fiscal year and any applicable out years as a
  multi-year appropriation.
• Object Code A code used for accounting purposes
  in addition to a written description to describe
  the specific items or services purchased by state
  agencies within various expenditure categories.
  Codes are prescribed by the Policy and Procedure
  Manual, Filing 7,002 prepared by the Division of
  Accounts and Reports.
• Omnibus Appropriations Bill A bill containing
  numerous individual appropriations for both the
  current and budget fiscal years that is
  considered during the veto stage of a
  legislative session. It finances items such as
  substantive legislation that passed and
  Governors budget amendments adopted by the
  Legislature.

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Important Terms

• Revenue Estimates Projections of anticipated
  State General Fund revenue for the current and
  budget fiscal years. An estimate is developed on
  a consensus basis by the Division of Budget,
  Department of Revenue, university economists, and
  the Legislative Research Department twice
  annually. In November an estimate is made for
  the current and budget years. This estimate
  forms the basis of the Governors budget
  recommendations to the Legislature. In the
  spring, prior to the end of the legislative
  session, the current and budget year estimates
  are reviewed and revised, if necessary.
• Shrinkage The difference between the cost of
  fully funding salaries and wages in a budget,
  assuming all positions were filled at all times,
  and the actual salary costs, taking vacancies
  into account. Also called turnover, it is
  expressed as a percentage.

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Budget Documents

• Budget Request
• Annual Operating Budget

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Budget Cycle
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Budget Request Timeline FY 2012 (July 1, 2011
June 30, 2012)

• May - June, 2010 Finalize PSU FY 2011 Annual
  Budget
• June 24-25, 2010 FY 2012 Budget Request
  Proposal approved by KBOR
• July, 2010 Interface salary fringe data from
  the FY 2011 Annual Budget to Division of Budget
  system for the FY 2012 Budget Request
• August 15, 2010 Access DOB system. Reconcile
  salary fringe data for FY 2011 FY 2012 with
  PSU files Enter OOE expenditures for FY 2011
  FY 2012 Reconcile DOB and PSU files.
• September 15, 2010 Submit request for FY 2012
  Budget in DOB system. Complete Narrative
  Operating Summary. Prepare paper request for
  internal staff use.
• November, 2010 Division of Budget
  Recommendations
• December, 2010 March, 2011 PSU Tuition
  Committee
• January, 2011 Governors Recommendations
• January May, 2011 Legislative Activity
• May June, 2011 Tuition Request Approved by
  KBOR
• May June, 2011 Finalize PSU FY 2012 Annual
  Budget

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Tracking Sheets
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Budget Request Document

• Section I
• Authorization Vision Statement
• University and Division Mission Statement
• PSU Strategic Plan 2007 2012
• Performance Measures
• Budgetary Organizational Chart
• Accreditation Status
• Student Headcount
• Performance Agreements

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Budget Request Document

• Section II
• Tables by Category and Program
• Fringe Benefit Rates
• Section III Division of Budget Forms

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Establishing the FY 2012 Annual Operating Budget

• Salaries
• Unclassified
• Classified
• Graduate Assistants Students
• Lump Sums
• Other Operating Expenditures (OOE)

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Establishing the FY 2012 Annual Operating Budget

• Unclassified Salaries
• Previous FY Salaries with changes for turnover
  employee movement
• Spreadsheets - increases and adjustments
• Vice Presidents
• KNEA Unit
• Approval by President
• Appointments Letters Issued

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Establishing the FY 2012 Annual Operating Budget

• Classified Salaries
• Civil Service Pay Matrix
• Changes approved by Legislature
• Market Adjustments
• Reallocations

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Establishing the FY 2012 Annual Operating Budget

• Graduate Assistants
• Salaries determined by Provost after tuition for
  2011-2012 academic year approved
• GTA salary includes tuition waiver
• Students
• Allocations for student salaries approved by the
  Vice President for the division

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Establishing the FY 2012 Annual Operating Budget

• Lump Sum
• Temporary Salaries (Classified Unclassified)
• SF1,CIT,CIP,Reserves
• Fringe Rates applied to all Salaries

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Establishing the FY 2012 Annual Operating Budget

• Other Operating Expenditures
• Allocations approved by the Vice President for
  the division
• Balance to Tracking Sheet
• Opening Journal Entries / Allocations prior to
  July 1, 2011
• FY 2012 starts on July 1, 2011

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Monitoring the FY 2012 Annual Operating Budget

• Salaries
• Budgeted v. non-budgeted
• Monitored through the Electronic Appointment
  Process and by the Budget office
• Departments with Grants monitor salaries with
  monthly payroll reports
• Shrinkage

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Monitoring the FY 2012 Annual Operating Budget

• OOE
• Monitored by the Business Office
• GL.LOOK in GUS

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Budget Web Page

• Budget Web Page www.pittstate.edu/office/budget
• Budget Transfer Form transfer between 104 105
  only
• Fringe Benefit Rates current and next FY
• Budget Calculator
• Classified, Unclassified, Students, Graduate
  Assistants
• Budget less Fringes
• EDCs

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Reports Available

• GUS Axe Library
• Annual Operating Budgets
• Budget Request
• Budget Office Resources
• Position Tracking History
• Annual Budget Comparisons

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PSU Funds

• PSU Funds
• State Appropriation Fund 104
• General Fees Fund Fund 105
• College Work Study Fund 106
• Restricted Fees Fund Funds 241 and 341
• University Federal Funds Fund 351
• Foundation Funds Funds ending in 42 (e.g. 342)

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PSU Funds

• Auxiliary Funds
• Student Health Fund 203
• Housing Fund 201
• Parking Fund 207
• Local Funds
• Student Center Funds 208 and 209
• Service Clearing
• Printing, Postal, Phone Funds
  107,108,109,110,111,112,114

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PSU Funds

• Paying payroll from funds
• Can not pay from Foundation funds or Local funds
• Need to pay from a restricted fee account
• Reimburse restricted fee account by using a DPR
  to move funds from the Foundation or Local Fund.
• College Work Study

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Block Grant Funding

• Prior to FY 2002, the Governor and Legislature
  established state university budgets using the
  general use model (SGF appropriations and tuition
  revenues)
• General use model each institutions budget was
  established by increasing its general use base
  using a uniform set of parameters ( for salary,
  OOE and enrollment adjustment)
• The amount of SGF required for each budget
  depended upon the amount of tuition generated by
  each institution. SGF and tuition revenue was
  interchangeable, and tuition monies were
  considered a state asset rather than an
  institutional asset.
• Placed a higher percentage of state funding at
  smaller institutions having relatively low levels
  of tuition income.
• General use model did not provide any of the
  institutions or the KBOR with the flexibility
  needed to more effectively manage resources and
  respond more rapidly to change.

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Block Grant Funding

• In October, 2000 the KBOR approved a new budget
  model called the operating grant/tuition
  ownership model, under which each university
  would receive a state operating grant and would
  retain ownership of an accountability for its
  tuition revenue.
• Each university would receive an operating grant
  based on a request determined by the Board.
• Under the Boards approval of tuition rates, each
  university would assess, collect and have
  expenditure authority over its tuition revenue.

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Block Grant Funding

• The Governor adopted the new budget model for the
  FY 2002 budget and declared that all budgets
  should be developed using the operating grant
  model.
• The Governor removed the historic expenditure
  limitations on tuition funds, thus opening the
  door for tuition ownership.
• The 2001 Legislature gave tacit approval to the
  new budgeting model by endorsing the Governors
  recommendations regarding tuition funds.
• For FY 2003, the Board deviated from the original
  plan by requesting the operating grant increase
  be appropriated to the Board for distribution,
  rather than appropriated to each university.

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Block Grant Funding

• Performance Agreements
• Senate Bill 647 was signed into law in 2002 and
  established Performance Agreements for Kansas
  public postsecondary education. Effective July
  1, 2005, receipt of new state funds by each
  institution shall be contingent on achieving
  compliance with its performance agreement. Board
  action is taken in June of each year for funding
  for the new fiscal year.
• Performance Agreement available on the Provosts
  web site
• http//www2.pittstate.edu/admin/provost/documents
  /PerfAgrmntCY08102007Oct22.pdf

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Block Grant Funding

• Performance Agreements FY Funding
• 7/1 12/31/2004 (pilot program) FY 2006
• 1/1/2005 to 12/31/2005 FY 2007
• 1/1/2006 to 12/31/2006 FY 2008
• 1/1/2007 to 12/31/2007 FY 2009
• 1/1/2008 to 12/31/2010 FY 2010 to FY 2012
• 1/1/2011 to 12/31/2013 FY 2013 to FY 2015

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Impediments to Implementation of Operating Grants

• Not established in statute established by
  agreement and by repeated and consistent
  application in developing budgets.
• Condition of state finances has not permitted the
  Governor to recommend nor the Legislature to
  appropriate an increase to the Universities
  operating grants.
• Unfunded mandates
• Fringe Benefit changes
• Classified Pay Plan
• Global expenditure reductions (travel equipment
  purchases)

34
Pittsburg State UniversitySupervisory
TrainingManagement Level Supervisors

• Budgeting 101
• Michele Sexton, Director of Budget Human
  Resource Services
• 620-235-4188 (msexton_at_pittstate.edu)
• Lauren Werner, Assistant Director of Budget
• 620-235-4105 (lwerner_at_pittstate.edu)
• 204 Russ Hall
• (August 3, 2011)