FY2011 WEB-BASED BUDGET DEVELOPMENT PROCESS

“A” FUNDS

Budget Office Objectives

1) Provide convenient tool for submitting base budget changes

2) Establish the FY11 base budget amount for each unique Department/Fund & object code combination

3) Improve data control and processing: Safeguard core data Reduce consolidation errors Better use time verifying budget information - not creating

spreadsheets and pasting changes

4) Account for recentralization of the budget for state appropriations and Fall and Spring tuition

5) Enable an accurate and timely posting of FY2011 base budget to the general ledger

General Information – Tuition & Fees

Tuition & Fees Approved tuition and fees on Bursar’s Office website

New for FY2011 – Fall and Spring tuition is budgeted centrally. Academic units receive a budget based on February 28, 2010 freeze date

Academic units will receive tuition for Summer I and Summer II

University tuition increase was 6.9% for undergraduates and graduates Academic units do NOT budget for university increase

Provost will use tuition reports to review budgeted tuition and may allocate additional funds or move budgets between academic units

Tuition increase allocated to Board approved University initiatives including Budget Reallocation Initiative

BOT Approved Undergraduate Required Tuition and Fees 2009-10 to 2010-11

Academic Academic Year Dollar Year

2009-10 Change 2010-11

I. Total Resident Undergraduate Tuition-Educational & General 3,638.00 118.00 3,756.00-Budget Reallocation Initiaitive (BRI) 0.00 158.50 158.50-Bond Debt Service 277.50 0.00 277.50-Renovation Reserve 22.50 17.50 40.00-Transportation Fee 10.00 5.00 15.00-Wellness Center 105.00 0.00 105.00-Student Activities 80.00 0.00 80.00-Student Health Center 153.00 16.00 169.00-Computer Fee 40.00 0.00 40.00-Athletics Activity 52.00 0.00 52.00

Total Resident Undergraduate Tuition 4,378.00 315.00 4,693.00II. Technology Fee 200.00 0 200.00

Total Required Tuition and Fees 4,578.00 315.00 4,893.00

Required Tuition and Fees:

General Information – Pay Package

Pay Package & Health Insurance

The General Assembly did not pass a pay package for FY2011.

If there had been a Pay Package, the State only funds a portion of the pay increase and the difference will have to be covered by tuition revenue.

The employer portion of the retirement contribution increased from 12.89% to 13.29% beginning July 1, 2010. Units will have to cover this increase.

The employer portion of the health insurance will increase by an average of 10.3% beginning January 1, 2011. A portion of the tuition increase is dedicated to cover some of the unit increase for the health insurance. Once the actual increase is known, the Budget Office will make additional budget allocations to units for “A” fund health insurance. Note that the additional funds will not cover the full amount of the increase and units will have to adjust their budgets to cover the balance.

General Information – State Appropriations

All USC Campus base state budgets were cut by 21% to begin the new fiscal year. This is a loss of recurring state support.

The budget cut has been assessed to each unit in the base budget.

Units no longer receive state appropriations via the 31500 object code. State funding, fall and spring tuition, and the “tax-in” and “tax-out” object codes have been combined. Units will receive this funding via the new 31900 object code. Therefore units will not see 31500, 40140, 40150, 81150, and 86150 in their base budget.

Units will receive all other revenue – including summer I and summer II tuition and unit specific fees.

There is a possibility of additional mid-year cuts after the fiscal year begins.

FY2011 Base Cut – Appropriations Bill

REVISED STATE FUNDS

BASE & TRAVEL CUT

ESTIMATED BASE VETOES

ESTIMATED STATE FUNDS

2009/2010 21.00% 2010/2011 SUSTAINED* 2010/2011Columbia 111,849,075 (23,488,306) 88,360,769 (1,623,719) 86,737,050School of Medicine 16,671,729 (3,501,063) 13,170,666 0 13,170,666Columbia & SOM TOTAL 128,520,804 (26,989,369) 101,531,435 (1,623,719) 99,907,716

Aiken 7,772,409 (1,632,206) 6,140,203 0 6,140,203Beaufort 1,834,243 (385,191) 1,449,052 0 1,449,052Upstate 10,138,616 (2,129,109) 8,009,507 0 8,009,507Lancaster 1,935,139 (406,379) 1,528,760 0 1,528,760Salkehatchie 1,649,214 (346,335) 1,302,879 0 1,302,879Sumter 3,061,316 (642,876) 2,418,440 0 2,418,440Union 746,001 (156,660) 589,341 0 589,341USC System TOTAL 155,657,742 (32,688,125) 122,969,617 (1,623,719) 121,345,898

*Does not include veto of Access & Equity program across all campuses totalling $110,374. These funds were allocated via CHE.

USC System - State Appropriation Reductions

TOTAL REDUCTIONS PERCENTAGE

SINCE FY2008 REDUCTION Columbia (75,714,638) -47.08%School of Medicine (10,790,688) -46.99%Columbia & SOM TOTAL (86,505,326) -47.07%

Aiken (5,174,788) -46.22%Beaufort (1,447,898) -50.36%Upstate (6,818,715) -46.52%Lancaster (1,271,093) -45.87%Salkehatchie (1,093,288) -46.02%Sumter (2,032,690) -46.11%Union (491,477) -45.90%

USC System TOTAL (104,835,275) -46.98%

February 28, 2010 budget is the starting point “Freeze” on permanent transfers was February 28 Units were allowed to make non-recurring transfers – but

any changes since March 1 are not reflected in the base FY2011 budget

Why this date ? More than half-way through the fiscal year Fall tuition is in, tuition reports provide ability to estimate

for Spring Allows time to complete budget adjustments and prepare the

Board of Trustees budget document Recall that line-item budget development was suspended for

FY11 in the spring

Budget Development Basics

Budget Office Adjustments – NON-RECURRING Examined all non-recurring budget transfer changes processed

through February 2010

Removed non-recurring 3’s Within responsibility - 36400/36500Outside responsibility - 363XX/368XXCarryforward 31533/31534

Removed 8XXXX transfers other than the tax codes For the Evening Program under RCCE, put back in an ESTIMATE for transfers out 86100, and put back in the offsetting ESTIMATE for transfer in to the academic units who participate

To offset changes in resources, expenditure objects were changed If the BD could be reversed back to the expenditures objects that were used,

they were offset If we could not tell what object was used, 50000 was offset

Non-Recurring Budget Changes

Budget Office Adjustments –RECURRING

Recurring 3’s:Within responsibility - 37400/37500Outside of responsibility - 373XX/378XXRolled up to new 31900

RevenueBudget Office left revenue budgets unchanged but rolled fall and spring tuition to 31900

Recurring (Permanent) Budget Changes

For the FY2011 base budget development - the Budget Office moved all “tax-in” and “tax-out” to new object code 31900

Permanent Budget Changes – Impact on Tax

Tax

Prior to setting the FY11 base:

Academic Units Tax out was recalculated based on new allocation factors

Service Units No additional resources are allocated at this time

Tax is now rolled up in object 31900

Change existing resource and expense budgets within current allocationUnits cannot use 31500, 31525/31526, 31534/31533 or tax codes 81150/86150NEW – Units cannot use object code 31600 and 31900Units should not budget any pay package increaseAt this time, units cannot change total budget – this budget matches the BOT approved budget. Budget changes may be entered in August.

Enter unit dollar changes and comments at the object code level

Drill down on Dept/Fund to see all changes processed by the Budget Office

Download all data to an excel file

Add object code for a new revenue or new expenditure budget

Make comments for Budget Office and for unit records

Confirm that resources – expenses = zero at the Dept/Fund and responsibility unit level

Units Can…

Object Code 50000

Units may need to budget and/or reallocate amounts in 50000

This object code may be used but should be reserved for holding funds that do not have a specific use at the time the budget is developed

Some units will need to remove negative budget amounts in 5XXXX objects

Unit budgets are changed and comments are provided, if necessary, at the object code level by July 26, 2010

Unit budgets do not have debit amounts in revenue object codes and credit amounts in expenditure object codes

All resources and expenditures are equal

You send your budget analyst an e-mail indicating you have completed your budget entry

Units will check box to indicate actions are complete

Budget Office will lock responsibility at completion

Your Work is Complete When…

Web-based Budget Development Dates

Web-based budget tool available for all units beginning Monday, July 12, 2010

Budget Office will email when the system is up

All units will have until Monday, July 26 to complete budget changes

When you are finished, please email your budget analyst and check box on web-based system to indicate completion

FY11 Budget Execution

Units may make budget transfers via the BD system beginning in August 2010

Board approved initiatives will be allocated in August. This includes Budget Reallocation Initiative funds for Academic Units.

USC Columbia Campus FY 2011 BOT Approved Initiatives

Budget Reallocation Initiative $8,000,000University Libraries $340,000Total $8,340,000

Scholarship 4% Fee Waiver Increase - In-State Undergraduate $579,650Career Center - Experiential Education $90,000Total $669,650

Academic Support and Student Affairs Programs

Academic Programs and Services

USC Columbia Campus FY 2011 BOT Approved Initiatives

Utility Increases $545,550Environmental Health and Safety - Insurance Increase $29,500Environmental Health and Safety - Hazardous Waste Increase $32,000Environmental Health and Safety - Fire Extinguisher Inspection $34,000Facilities - Operation and Maintenance of New Facilities $637,500University Development and Alumni Relations - Capital Campaign $1,100,000University Communications $250,000Health Insurance Employer Cost Increase $510,800OneCarolina $1,500,000Legal - Operating $226,000Total $4,865,350

Transportation Fee $200,000Student Health Center $650,000Renovation Reserve $800,000Total $1,650,000

General Institutional Costs and Central Operations

Mandated Fee Distributions

QUESTIONS