Implementation of Fund 20

1
Implementation of Fund 20 22 Annual Budgets
for FY 2008 and an update for Fund 21 Budget
Office of Budget and Financial Planning
2
Fund 20 and 22 Budgets

• The next step in the transition to an all funds
  budgeting approach is to implement budget control
  for the Fund 20 22 projects.
• Revenue and expense budgets to be established
  annually for all projects in fund 20 22
  beginning in FY2008.
• Beginning September 1, 2007, all fund 20 22
  projects will be subject to automated budget
  control at a project level.
• To assist units in establishing initial project
  budgets, the Office of Budget Financial
  Planning will coordinate the upload for all fund
  20 22 budgets for FY2008 with ITS (with the
  exception of IFA and the Law School).
• Both revenue and expense budgets for all fund 20
  22 projects will be based on the prior year
  actual without any inflators.
• Fund 22 projects with zero fund balances, no
  actual revenue or expense activity, and have not
  been closed, will not be budgeted in FY2008.
• No expense budgets will be created, for fund 22
  projects with negative fund balances and with no
  actual revenue in FY07.
• Budget modifications to expend fund balances can
  be submitted beginning September 1, 2007.

3
Fund 20 22 Budgets

• Revenue Budgets
• For fund 22 projects with prior year activity,
  the gift budget will be based on the prior year
  revenue stream without inflators.
• For all fund 22 projects, the pledge budget will
  be based on the pledge schedule received from the
  University Development Alumni Relations Office.
• For fund 20 and 22 projects with prior year
  activity, all other revenue categories budgets
  will be based on the prior year actual without
  inflators.
• Fiscal officers are requested to provide an
  estimated budget for all other revenue categories
  for fund 20 and 22 projects without prior year
  activity.

4
Fund 20 22 Budgets (Cont.)

• Expense budgets
• Expense Budget one of two options will be used
  to create the FY2008 expense budget
• Trend Analysis - for projects with actual
  activity
• The expense budget will be created by looking at
  spending trends for actual activity in FY06 and
  FY07.
• For projects with no prior year actual activity,
  but where revenue budgets are created
• An expense budget will be created which will be
  equal to the total estimated revenue budget,
  provided by the fiscal officers, in a newly
  created account code (60000).

5
Fund 20 22 Budgets

• All units will have the ability to review the
  budgets for their area prior to upload.
• Budget modifications to expend existing fund
  balances can be submitted by the divisional unit
  after the close of FY2007.
• A review will be done following the close of
  FY2007 to see if any projects are beginning with
  a deficit fund balance or gift income for the
  last few months of FY2007. If necessary, budget
  modifications will be made to the revenue and
  expense budgets for FY2008.
• In the case of deficit fund balances, the FY2008
  sources of revenue will be utilized first to
  cover all deficits.
• If there are no revenue sources, departments will
  be requested to identify alternate sources of
  funding to close these deficits.

6
Fund 21 Endowment Budgets for FY2008

• To assist fiscal officers, the Office of Budget
  Financial Planning will provide the FY2008
  endowment spending distribution and this will be
  populated in BIA.
• Fiscal officers will need to upload the expense
  budgets.
• The FY2008 endowment spending distribution
• The payout rate (5)
• The value on which the rate is applied
  (12-quarter moving average of the market value of
  one unit) and the floor/cap (no floor, 10 cap
  each year).