How Can We Be Better Stewards of Our Resources? January 14, 2009

Academic Controller Council Meeting

How Can We Be Better Stewards of Our Resources?

January 14, 2009

Better Resource Stewardship: What are the issues?1. Annual vs. academic budgeting (Fall

semester comes last instead of first)2. Our returnable suggests unused resources3. Budget categories sometime constrain units4. Budget surpluses are sometimes used in

suboptimal ways5. We have not mastered the principal of

consecration

A Change to Appropriated BudgetsUnits will be encouraged to “turn in” un-

needed budgets by May 31 for reallocation.In exchange, units will immediately receive

back 50% of the amount turned-in as “flexible budget.”

These new, flexible funds will expire on December 31 of the year given.

This will not affect the Resource Planning process or existing carryovers (1%, equipment, access devices, etc.)

We will re-allocate the budget “turned-in.”

BYU Budget Modification Proposal Illustration 1: Unused Budget

Current

Original Budget $1,000,000

Revised Budget $1,000,000

Actual Expenditures $950,000

Difference $50,000

RE-CAP

Over-Expenditure Reduction

$0

1% Carry-Over $10,000

Returnable $40,000

BYU Budget Modification Proposal Illustration 1: Unused Budget

Current Proposed

Original Budget $1,000,000 $1,000,000

Voluntary Budget Reduction

NA ($20,000)

Flexible Budget Share NA $10,000

Revised Budget $1,000,000 $990,000

Actual Expenditures $950,000 $950,000

Difference $50,000 $40,000

RE-CAP

Over-Expenditure Reduction

$0 $0

1% Carry-Over $10,000 $10,000

Returnable $40,000 $30,000

Additional Resource Available

NA $10,000

BYU Budget Modification Proposal Illust. 2: Overspent Budget

Current Proposed

Original Budget $1,000,000 $1,000,000

Voluntary Budget Reduction

NA ($20,000)

Flexible Budget Share NA $10,000

Revised Budget $1,000,000 $990,000

Actual Expenditures $1,010,000 $1,010,000

Difference ($10,000) ($20,000)

RE-CAP

Over-Expenditure Reduction

($10,000) ($20,000)

1% Carry-Over $0 $0

Returnable $0 $0

Additional Resource Available

NA $10,000

Questions we are likely to be asked Is my unit required to participate?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary.

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11.

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget? At

the same time you submit your budget adjustment.

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget? At

the same time you submit your budget adjustment.

When does the flexible budget expire?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget? At

the same time you submit your budget adjustment.

When does the flexible budget expire? It must be given by May 31 and expires at year end.

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget? At

the same time you submit your budget adjustment.

When does the flexible budget expire? It must be given by May 31 and expires at year end.

Will this affect my 1% carryover?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund

11. When would I get this flexible budget? At

the same time you submit your budget adjustment.

When does the flexible budget expire? It must be given by May 31 and expires at year end.

Will this affect my 1% carryover? No.

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund 11. When would I get this flexible budget? At the

same time you submit your budget adjustment. When does the flexible budget expire? It must

be given by May 31 and expires at year end. Will this affect my 1% carryover? No. If I make a voluntary budget reduction, will I

permanently lose that budget?

Questions we are likely to be asked Is my unit required to participate? No, it’s

voluntary. What funds does this apply to? Only Fund 11. When would I get this flexible budget? At the

same time you submit your budget adjustment. When does the flexible budget expire? It must

be given by May 31 and expires at year end. Will this affect my 1% carryover? No. If I make a voluntary budget reduction, will I

permanently lose that budget? No.

Questions we are likely to be asked How can we use this flexible budget?

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover.

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.?

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t!

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning?

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning? No.

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning? No. What would the administration do with the

budget it collects?

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning? No. What would the administration do with the

budget it collects? Reallocate it for university priorities.

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning? No. What would the administration do with the

budget it collects? Reallocate it for university priorities.

When would this begin?

Questions we are likely to be asked How can we use this flexible budget? The

same way you would use your 1% carryover. How will this affect other budget carryovers

like equipment, software, etc.? It won’t! Will this affect how my unit does Resource

Planning? No. What would the administration do with the

budget it collects? Reallocate it for university priorities.

When would this begin? January 1, 2009

Questions we are likely to be asked

Note: This doesn’t eliminate the need for Board approval of projects over $100,000.

Questions. . . a Great idea whose time will come . . .