Todays Topics Wharton Budget Process Budget Calendar amp Planning Parameters Budget Schedules FampA Analyst Budget Review SchoolLevel Review Wharton Budget Process Overview Framework ID: 746117
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Slide1
Budget SchedulesFY18
Finance & Administration Slide2
Today’s Topics
Wharton Budget Process
Budget Calendar & Planning Parameters
Budget Schedules
F&A Analyst Budget Review
School-Level ReviewSlide3
Wharton Budget Process | Overview
Framework
: based loosely on current year’s budget + new/changing initiatives / Departmental priorities
Schedules:
translate framework for consistency across Wharton by categories + documentation of budget components
Hyperion:
input of budget and review versus schedules and departmental context via Hyperion Reports
Review
: of mechanical and contextual aspects of departmental budgets
Analysis: at School level to verify accuracy of budget, understand changes to upcoming budget versus current year forecast
Present
: budget summary and additional request to Dean
Additional analytics:
as needed based on presentation
Budget Approvals
: communicated for those departments with Funding requests
Trustee Approval
: of overall budgetSlide4
FY18 Budget |
Training Options
Budget
SchedulesHyperion: Entry & ReportsOne-on- One SessionsSlide5
Sarah Grady 8-9227
Linda Kiraly Gilbert 8-2691
Todd Pustilnick
6-8299Jim Quinn 3-5404
!
Contact your analyst with
any
questions during the budget prep period (now through March 15
th)
Strategic Planning Group |
Help us help you!Slide6
FY18 Budget |
Key Dates
Academic Depts. FY17 Projections
: update of Non-standing Faculty & PhD due Feb 15 Wharton’s Final FY17 Forecast due to Central Apr 13 No formal P2 projections but your Analyst may reach out with questionsSlide7
Preliminary Planning
Parameters
FY18
CompensationStanding Faculty: Budget Increase for Salary Pool
3.0%
Staff: Budget Increase for Salary Pool
2.75%
Anticipated Employee Benefit Rates
Full-Time EB Rate
31.7%
Dependent Tuition Rate – Full-Time Only
2.3%
Part-Time EB Rate
9.7%
Other Planning Parameters
Current Expense Increase
0%
010701 Revenue Overhead (Obj-5283)
19.1%
Sponsored Program Indirect Cost Recovery (OH-Obj-5282)
61%Slide8
What
are Budget Schedules?
Excel Spreadsheets organized (primarily) by RCM Category and/or Object code.
Why
do we use them?
To provide a framework for the various components your department’s budget planning process
To make
budget entry into Hyperion
easier by generating an input tableTo provide documentation/details of budget for later useWhere do
I find them?Saved in the FY18 Budget folder in your department’s Pillar drive.
Budget Schedules|
OverviewSlide9
The
budget schedules are:
Standing Faculty Schedule
Non-Standing
Faculty Schedule
PhD Schedule
Post Doc Schedule
Temporary Workers, Work Study, TAs,
RAs
Staff ScheduleCurrent Expense Schedule
Other
Income
(Sales &
Service/
Miscellaneous Income)
Transfer Reconciliation Schedule
Additional Funding Request Form
Fund Carry Forward Schedule
Endowment
Additions and Liquidations Schedule
Budget Schedules|
OverviewSlide10
Standing Faculty Schedule
To Schedule ListSlide11
Standing Faculty
Schedule:
Salary
If you are “buying in” a faculty member from another dept, you must add their name to the schedule and fill in columns L & M. You should not add this faculty member’s base salary to columns F & H.
Current Home Org Faculty names
and salaries will be pre-populated. You will need to add any chair, buy-out, or leave of absence information
. Potential new faculty should also need to be added with any information you have about their offers (i.e. likelihood and/or timeframe of acceptance).
Endowment yield information can be pulled from the “B14: Endowment & Gift Fund Analysis” Hyperion report. If your are not the RESP ORG for the endowed chair, contact your analyst for this information.
Hyperion Planning Input table will populate automatically from the entries in the above table. Feel free to adjust the
Prog
/
C
ref
codes as needed.Slide12
Standing Faculty Schedule:
Ninths
Research Ninths will come pre-populated for all Home Org Faculty. Please make notes to explain any changes to your analyst.
Please COMMUNICATE with other BAs to confirm agreements between departments!!
You will need to add any Administrative Ninths paid to Home Org Faculty.
Any additional funds needed beyond the 000000 fund can be entered in the blue “Fund” boxes above. Totals from the top tables will flow automatically into the Hyperion table at the bottom of the page.Slide13
Standing Faculty Schedule:
DARTs
Remember to
add the total amount of Post Doc and/or Visiting Faculty DARTs (if applicable) from the applicable schedules.The schedule will come pre-populated with “normal” 010702 DARTS. You will need to enter any one-time additional DARTS or DARTS for new faculty members.
For 010702 DARTs, you will need to budget both a transfer in (4820)
from the school, and
the spending (5249). For 010703 and
Restricted Fund
DARTs, you should only budget the spending (5249).
New column for Additional Funding 010702 DARTS!!Slide14
Standing Faculty Schedule:
Other Teaching (Full-Time)
This schedule is used for
additional teaching payments (sometimes above normal course load) and/or additional payments as part of an agreement. If related to a specific course, please be sure to list the course information including CUs.
The Hyperion Planning Input table will calculate automatically from above. Feel free to adjust the Prog & Cref codes to make input as simple as possible.Slide15
Standing Faculty Schedule:
Relocation (5057)
This schedule is used for relocation payments to faculty. For example: moving a new faculty member across the country.
Please remember to add relocation payments to the Additional Funding Schedule and enter them in Hyperion using the 07-9999 CREFSlide16
Non-Standing Faculty Schedule
To Schedule ListSlide17
Non-Standing Faculty Schedule:
5020 and 5011
Schedules will come prepopulated with FY16 Actuals and FY17 Budget totals for each object code. You are asked to add your FY17 Projection and provide explanation of any significant variances between these figures and your FY18 Budget in the blue box below.
Please makes sure to include explanation for the payment including courses taught, name of standing faculty being replaced (if applicable), and any other relevant information.
You can add any other fund numbers needed in the blue box above and they will automatically populate the Hyperion Planning Input table below.Slide18
Non-Standing Faculty Schedule:
Buy Sell Agreements
Please makes sure to include explanation for the payment including courses taught and University/Firm from whom we are buying the faculty time.
Buy Sells should be budgeted under object code 5339 on fund 010703.Slide19
PhD Schedule
To Schedule ListSlide20
PhD
Schedule:
Stipends (Student Input)
Input to BLUE sections only. All white and orange areas contain formulas that will update automatically.Stipend Amount and # of PhD slots will be populated by F&A. Please check this information when completing the schedule.A PhD’s status is now described in “Terms” instead of “Years.” Select the
object code
from which the stipend will be paid from the drop down.Slide21
PhD
Schedule:
Stipends (Hyperion Input)
21Control Check MUST EQUAL $0
This input table will fill in automatically based on your entries in the schedule above. Slide22
PhD
Schedule:
Tuition, Fees,
& Health Insurance (Student Input)PhD Student name, status, and terms will fill in automatically from your input on the Stipend Tab.The tuition/fees/health insurance object code will flow automatically from the stipend object selected on the stipend tab.Slide23
PhD
Schedule:
Tuition & Health
Insurance (Hyperion Input)The input table will automatically fill based on your entries in the above schedule. The transfers from 010701 to 000000 for PhDs over the allotted slots or beyond their 10th term will calculate automatically.Slide24
Post Doc Schedule
To Schedule ListSlide25
Post Doc Schedule
Reminders:
HEALTH charges follow STIPEND payments!
Information input into the Post Doc Package Summary will flow to the category tables below ( Salary, DARTs, Medical, C/E).Stipend increases should be no more than 2%.If you have a Dean’s post doc, do not put more than 50% of the total post doc package on Fund-010703.Slide26
Temporary Workers, Work Study, TAs & RAs Schedule
To Schedule ListSlide27
The “Total Cost” will calculate automatically based on your input of the hourly wage and estimated annual hours.
You
may enter
either the worker’s names or job titles. If there are multiple workers performing the same job, you can group them together (e.g. “Student Data Assistants (3).”Temporary Workers, Work Study, TAs & RAs: Temporary Workers
Schedules will come prepopulated with FY16 Actuals, FY17 Budget, and FY17 Trended results. You are asked to provide explanation of any significant variances between these figures and your FY18 Budget in the blue box below.Slide28
“Total Charged to 000000 Fund” will calculate automatically as the default fund after all “Payments from other Funds” have been deducted.
Any amount over the previous year’s 000000 fund budget will automatically be added to the 07-9999 CREF in the Hyperion Planning Input table and should be included on the Additional Funding Schedule.
Temporary Workers, Work Study, TAs & RAs:
Temporary Workers
Enter fund numbers in the blue boxes, and they will automatically populate the Hyperion Planning Input table below.Slide29
The “Hourly Wage Paid by Dept” will calculate based on your input of the “Hourly Wage” (actual wage received by the student) and “
Term”
since the department’s cost varies (Academic Year at
50% and Summer at 80%). Beyond this difference, this schedule operates exactly like the Temporary Worker schedule.Temporary Workers, Work Study, TAs & RAs: Work StudySlide30
You do not need to populate each
section of the course individually unless each section has unique TA payment arrangements.
The “Total TA Cost” will calculate automatically based on your input of
the section and pay rate information.Temporary Workers, Work Study, TAs & RAs:
TAs
If additional funding is required please provide detailed information pertaining to why additional TA’s are needed,
ie
. new course, another section is being added, larger class size, etc.Slide31
Temporary Workers, Work Study, TAs & RAs:
RAs
Schedule operates very similarly to Temp, WS, and TA schedules. Funds entered in blue boxes will automatically populate the Hyperion Planning Input table below.Slide32
Staff Schedule: Professional & Support Staff
To Schedule ListSlide33
Staff Schedule:
Professional
& Support
StaffStaff names, titles, and base salaries are pre-populated by F&A.New columns have been added to indicate whether new positions are new for FY18 or were added during the current fiscal year.Slide34
Staff Schedule:
Professional
& Support
StaffPlease add other fund payments in columns K-X and other org payments (orgs for which you are not responsible) in columns Z-AB . The portion of the staff member’s salary on the Operating Fund will calculate in column Y. Overwrite “Fund 1,” “Fund 2,” “Operating Fund,” etc. with the actual fund numbers you will be charging and they will automatically flow to Hyperion Planning Input table below. Add any explanations in the notes column (AC). Slide35
Staff Schedule:
Scenario A
Marie’s Home ORG is 0701 but 50% of her salary is paid by ORG 0702
Marie’s Base Salary will ONLY be populated on the Staff Schedule of her HOME ORG
Marie will need to be manually added to 0702’s Staff Schedule since this is not her HOME ORGSlide36
Staff Schedule:
Possible Scenario B
25% of Marie’s Salary is paid on a 4-FundSlide37
Staff Schedule:
Completed
The Hyperion input table will automatically populate with the data entered above. New positions requested for FY18 are automatically coded with 07-9999.
Open positions should be budgeted with a 0% increaseSlide38
Staff Schedule:
Overtime (5112)
Enter fund numbers in the blue boxes, and they will automatically populate the Hyperion Planning Input table below.
Any amount over the previous year’s 000000 fund budget will automatically be added to the 07-9999 CREF in the Hyperion Planning Input table and should be included on the Additional Funding Schedule with an explanation for the increase.
Schedules will come prepopulated with FY16 Actuals, FY17 Budget, and FY17 Trended results. Slide39
Current Expense Schedule
To Schedule ListSlide40
Your allowable 000000
fund
Current Expense budget is provided here.
You can decide how this amount should be allocated between Object Codes, but the total of all Current Expense Object Codes should equal this amount. Current Expense Schedule: 000000, 010701, 4XXXXX, & 6XXXXXIf applicable, enter revised 010701, 4XXXXX, and 6XXXXX budgets based on your calculations and provide explanations for differences.
Your recommended 010701, 4XXXXX, and 6XXXXX Fund
Current Expense
budgets are
provided here
.
We added 4XXXXX and 6XXXXX fund information this year to assist you in your budget preparation and increase the accuracy of the overall CE budget. Slide41
Other Income Schedule: Sales & Service and Misc. Other Income
To Schedule ListSlide42
Other Income Schedule:
Sales & Service and Misc. Other Income
We will provide information for the funds that have activity. Please explain any difference from the recommended budget in the boxes below
. Slide43
Budget Concepts | Trending
Trending is a method of calculating the current year’s forecast based on
prior year
and
year-to-date actual
activity.
This method determines the percentage of total activity that occurred through a specified period in the prior year, then applies that percentage to this year’s activity as of the same period to project the total current year activity.
This method takes “trends” into account -- it calculates this year’s forecast expecting the same pattern as last year’s activity.
For example, if 90% of the spending occurred in the last three months of the prior year, the calculated forecast for this year will assume the same spending pattern.Slide44
Example 2: Spending is Back-End Loaded
This Year
Actual
This Year
Trended
($000's)
Final FY16
Actual
YTD
FY16
Actual
thru Dec
YTD FY17
Actual thru
Dec
Calculated
FY17 Y/E
Fcst
Current Expense
3,000
300
400
4,000
Last Year Actual
Example 1: Evenly Distributed Spending
This Year
Actual
This Year
Trended
($000's)
Final FY16
Actual
YTD
FY16
Actual
thru
Dec
YTD FY17
Actual thru
Dec
Calculated
FY17 Y/E
Fcst
Non-Academic Salaries
1,200
300
6
8
00
1,600
Last Year Actual
50%
10%
800
/
.50
=
1,600
400
/
.10
=
4,000
Budget Concepts |
Trending ExamplesSlide45
Example of Skewed Trending due to $0 YTD Spending
Last Year Actual
This Year Actual This Year Trended ($000's)
Final
FY16
Actual
YTD
FY16
Actual thru Dec
YTD
FY17
Actual thru
Dec
Calculated
FY17
Y/E Fcst
Grad Student Appointments
160
20
-
-
Example of Skewed Trending due to slight uptick in YTD Spending
Last Year Actual
This Year Actual
This Year Trended
($000's)
Final
FY16 Actual
YTD
FY16 Actual
thru
Dec
YTD
FY17 Actual thru
Dec
Calculated
FY17
Y/E Fcst
Current Expense
200
20
60
600
13%
0
/
.13
=
0
60
/
.10
=
600
10%
Budget Concepts |
Skewed
Trending ExamplesSlide46
Transfer Reconciliation Schedule
To Schedule ListSlide47
For all transfers
within your org
, be sure that both the transfer in and out are listed in this section
(once as Transfer In, once as Transfer Out). Be sure to use the correct sign so that the transfer in or out can be distinguished: Negative () for Transfers In and Positive for Transfers Out
.
You will need to fill in the Hyperion Input / Reconciliation Table from the three sections above. Be sure that the control total = $0.
Transfer Reconciliation
ScheduleSlide48
Additional Funding Request Form
To Schedule ListSlide49
If the
“Supporting Detail”
column does not provide enough space to explain the request, please send your budget analyst additional information or supporting documents.
Additional Funding Request FormChoose the Type of Expense from the Drop Down Menu. Any one time and finite period expenses should be budgeted and spent from 010703, while recurring expenses should be budgeted and spent from 000000 (or other designated fund). DARTS should be budgeted and spent in 010702.Slide50
Items NOT Considered Additional Funding Requests
New Faculty: Base Salary, Standard Ninths and DARTs (at your departmental
standard
).
Visiting and Adjunct Faculty: Base Salary and DARTs
Staff Reclassification RequestsSlide51
Additional Funding Request Form: 000000, 010703, 010702?
Examples of 000000 Fund Additional Funding Requests:
Recurring Requests
TA for a new course
New staff positions
Permanent Increase to Current Expense
Need for increased Work Study
Examples of 010703
Fund Additional Funding Requests:One Time Requests
Faculty RelocationOne Time Computer PurchaseOffice RenovationSpecial Arrangement for a finite period of timeExamples of 010702 Fund Additional Funding Requests:
One Time
Requests
DARTS (above the normal Dept. Darts Amount)Slide52
Fund Carry Forward Schedule
To Schedule ListSlide53
Funds Carry Forward Schedule: Overview
The
purpose
of this schedule is to ensure that all funds
will end FY18 at either
break-even or surplus.
010701 (Discretionary), 4XXXXX, and 6XXXXX funds
that have been budgeted into a deficit position in FY18
should be included to ensure prior year surpluses cover the budgeted deficit.
Hyperion can help you confirm if you have budgeted a fund into a deficit position: For 4XXXXX and 6XXXXX funds: B14: Endowment & Gift Fund AnalysisFor 010701: X46-WHA-RCM Row and Object Detail
Review the
RCM Operating (Surplus)/Deficit
line to confirm if any funds are in a deficit positionSlide54
Fund Carry Forward
Schedule:
Estimated Surplus/(Deficit) End of FY17
This is your estimate of the fund’s cash position at the end of the current fiscal year. This figure will automatically update based on your inputs for Column D-F.This is the amount (if any) you plan to liquidate (only applies to endowments) in the upcoming year. It is entered as a positive number as it is an increase to cash balance (although a decrease to the invested value).
Cells D7-F7 are a reminder of where/how to find the requested inputs .Slide55
Fund Carry Forward
Schedule:
FY18 Budgeted Activity
You can pull the information for Columns I-O from the “B14: Endowment & Gift Fund Analysis Report” in Hyperion, after you have entered the budgeted activity to Planning. Enter Inflows (revenue, transfer-ins) as positive amounts and Outflows (expenses, transfer-outs) as
negative
amounts.
This is the estimate of fund’s current year and cumulative cash position at the end of FY18. The figures will automatically calculate based on your inputs in the proceeding cells.Slide56
Endowment Additions and Liquidations Schedule
To Schedule ListSlide57
Endowment Additions & Liquidations Schedule: Why complete it?
The AIF reflected in Hyperion
does not
take into account any
additions
(gifts to the endowment or reinvestments) or
liquidations
that occurred within the current year or are expected in a future year.
AIF in Hyperion is calculated based on the invested balance (FMV) as of the previous fiscal year.
Example: FY18 AIF is calculated on the balance at the end of FY16.The Endowment and Liquidation Schedule allows you to input any additions (gifts to the endowment or reinvestments) or liquidations that HAVE occurred or that you EXPECT to occur in the current fiscal year (FY17) or WILL occur in the next year (FY18). Once this information is updated to Hyperion, the AIF with calculate based on the updated FMV.Slide58
Endowment
Additions and Liquidations Schedule
Investment activity is now recorded in Hyperion on an annual instead of monthly basis, so only a FY18 total is needed.
Use the Hyperion Planning Input Table to complete the S1 form in Planning. Type the numbers exactly as they appear here, remembering especially to enter the correct sign.
To have AIF income accurately calculated,
endowment
additions, liquidations, and reinvestments that
occurred (or are expected to occur)
in FY17 should be entered.
Enter amounts as absolute values to the “Current Fiscal Year” and “
FY18”
tables . The “Hyperion Planning Input” table will convert the values to the appropriate sign (positive or negative) for Hyperion entry. Slide59
Budget ReviewSlide60
60BA Budget ReviewSlide61
F&A Analyst Budget Review |
OverviewSlide62
Example of Incomplete Request
Example of Complete Request
F&A Analyst Budget Review |
Additional FundingSlide63
F&A Analyst Budget Review | Summary
Slide64
School Level Review | OverviewSlide65