PBA Home >  Campus Budget & Finances >  FY2009 Auxiliary budget instructions

WHAT'S NEW FOR FY2009?

Internal Service Center Rate Sheet
ABS and PBA have jointly revised the Internal Service Center (ISC) rate sheet to serve not only as the record of compliance with federal regulations and fiscal rules in determining the rates to be charged to internal and external customers by the ISC, but also as the template for uploading its budgets into the Finance System.

Expenditure Control
Expenditure Control rules will be implemented in auxiliary funds 20, 28, and 29 effective October 2008 (Phase 3). The Boulder campus default settings for FOPPS attributes in these funds will be configured as follows:

Available Resource Basis (ARB) for each speedtype will be BL -- budget ledger, and the Expenditure Control Rule (ECR) attribute for each program will be DAB -- department (org)/all expenses/budget-based.

The use of budget as the ARB, rather than net assets, will mitigate problematic timing and cash flow issues in Expenditure Control by preempting resource checking failures when there is not sufficient cash on hand to cover expenses and encumbrances. Therefore, it is more critical than ever before to budget your FOPPS based on the magnitude of expected revenue and/or expense activity for the fiscal year. The only exception should be if you know the FOPPS will have no financial activity.

If the use of the default setting of BL and DAB would like to be changed, those requests can be emailed to ABS prior to June 1st annually. Any new programs established in the future will be set to this default unless the unit requests otherwise. Auxiliary fund budgets represent your fiscal year financial plan, but it is important to remember that they do not constitute your spending authority as they do in funds 10, 30, and 31. Rather, you still must operate your unit within your net asset capability.

Use of Both the Continuing and Temporary Budget Ledgers
Units will be able to use both temporary and continuing budget ledgers in the auxiliary funds. This choice will be applicable in only Fund 20 and Fund 29.

For instance, are your unit's expenses very similar from one year to the next, in terms of type of expense, and dollar magnitude? For example, say your department holds an annual conference that typically costs about $50,000 to run; or your entire unit's salaries, benefits and operating expense-while more complex than the annual conference-are close to $2 million annually. Would you prefer to set up next year's budget such that it won't need to be re-created and resubmitted every year? Refer to the decision tree to help guide you through whether you want to establish continuing or temporary budgets.

Units are encouraged now to request that such budgets for FY 2009 be set up in the continuing budget ledgers, a notable departure from the campus-wide Auxiliary Fund use of temporary budget ledgers only. Budgets in the continuing ledgers are systematically rolled forward from one fiscal year to the next, eliminating the need to resubmit them annually.

Once the Budgets Are Submitted for Upload
During the year, all auxiliary units should update their budget throughout the year when deemed necessary (e.g., to keep up with inflationary factors or to accommodate a large, permanent change in operation). The unit should do an on-line budget journal entry anytime during the year. If these entries are done a continuing basis, these BJEs will be incorporated into the automatic rollforward process that will occur at the start of the new fiscal year, same as when the General Fund budget rollforward occurs. Also, please note that there will be no temporary rollforwards of budgets in the Auxiliary fund as with the General Fund.

If There Are No Budgets Submitted for Upload
If there are no auxiliary budgets submitted for upload and it appears that your unit should have auxiliary budgets established (and/or modified), the Budget Office will periodically notify units of this. In some cases, a budget will be entered on behalf of the unit. Ultimately though, it is the unit's responsibility for auxiliary budget preparation and management.

GENERAL PREP INFORMATION

Budget preparation instructions by fund

FUNDS 20 and 26
Units with FOPPS in Funds 20 (TABOR enterprises) and 26 (exempt) will be expected to prepare their budgets using PBA's updated template worksheet and following the standard instructions General Prep Info and Preparing your template worksheet. The larger enterprise units should match their budgets to align with reporting requirements for the new fiscal year, e.g. bond fund reports, enrollment reports to CCHE, overall student governance package and proposed housing room and board rates to the Board of Regents for approval. Most Fund 20 unit managers have indicated that they want to do their traditional budgeting approach of submitting zero-based budgets annually. However, if a Fund 20 unit would like to have its budget rolled forward, please choose "Continuing budget ledger" on the template worksheet . Because of the nature of operations in Fund 26 (largely royalties from licensing, patents, etc.) financial activity varies significantly from year to year. For this reason, Fund 26 budgets must be submitted annually by the unit to the Budget Office for entry into the temporary budget ledger.

FUND 28
ABS and PBA have jointly revised the Internal Service Center (ISC) rate sheet to serve not only as the record of compliance with federal regulations and fiscal rules in determining the rates to be charged to internal and external customers by the ISC, but also as the template for uploading its budgets into the Finance System. This means a reduction in the number of forms to fill out; down from two forms-ISC rate calculation sheet and budget upload template to one ISC sheet that serves both purposes.

How this new process will work is included in the updated rate sheet and instructions can be accessed on either the PBA or ABS' website. Click on the letter "I" in the alphabet index, and scroll down to Internal Service Centers' links.

Please complete a rate calculation worksheet for each ISC FOPPS and return them to Diana Vidal in Accounting & Business Support. Contact your area accountant if you have questions or would like assistance in completing your rate worksheets. ABS will forward the linked budget information to PBA for upload into the finance system. Because the rate calculations need to be submitted each year, the Fund 28 budgets will be input to the temporary budget ledgers.

FUND 29
Excel spreadsheets for Fund 29 orgs with revenue/expense activity in FY 2008 will be emailed to unit managers. The spreadsheets include the following:

• prior and current fiscal year-to-date revenue, expense, and transfers, summarized to line-item (budget pool) category by speedtype;
• the current 2008 budget;
• fund balance as of February 2008 (or most recent month when we send these out); and
• fill out the right-hand column with your FY 2009 budget ledger choice.

It is recommended to budget by FOPPS, meaning that each speedtype has a revenue and/or expense budget representing anticipated financial activity. However, it is acceptable to budget at the org level. If you choose to budget some or all of your activity by org, please make a notation of this on your spreadsheet, and you will need to choose at least one speedtype to record your org-level budget activity.

Units can choose to submit their Fund 29 budgets to be uploaded into either the temporary or continuing ledger. Please indicate your choice on the budget upload templates returned to the Budget Office. PBA recommends in most cases that fund 29 budgets be input to the continuing budget ledger, provided the unit financial activity is fairly consistent from one year to the next.

Managers should use the summary data provided, along with their knowledge of their unit, to forecast the coming fiscal year activity and input the applicable budget for FY 2009 in the appropriate column indicated on the worksheet.

PREPARING YOUR TEMPLATE WORKSHEETS