Quarterly All Funds Budget

1. Quarterly All Funds Budget College of Agriculture & Life Sciences September 24, 2013

2. Contents ContentSlide Number • Message from the Dean 3 • Purpose, Definition, Tools 4-6 • Process, Projecting 7-8 • Revenue 9-11 • Expenditures 12-17 • Reasonableness & Review 18 • Conclusion 19

3. Message from Dean Burgess Multi-year financial planning and oversight are important components of a unit’s ability to meet strategic and programmatic goals.  Each unit head has the delegated authority, responsibility and accountability to lead and manage the unit. This includes managing the unit’s resources consistent with achieving its stated goals and strategic objectives. The Executive Council and I expect unit heads and business leaders to thoughtfully develop and build financial stability into every unit’s academic and research success, and we view the quarterly budget as an important part of that effort. Shane Burgess

4. Purpose • Integrate multi-year financial plan with unit’s overall academic and programmatic plans • Detect possible unit deficits with enough time to take corrective action and avoid them • Develop strong working relationships, communication, and a financial partnership between the unit head and business leader • Create a stronger understanding of resource generation and resource constraints • Understand the tradeoffs associated with opportunity costs and programmatic priorities

5. Defining “All Funds” • Accounts & Expenses INCLUDED • State and Federal Formula Funding • TRIF – Technology Research Infrastructure Fund • Locally Allocated: 211XXXX and 255XXXX • Auxiliaries • Designated Activities (cash style): FPC, Patent Royalty, Sales & Service, Conference, Summer Session, etc. • Gift Accounts • Loan Payments – NOT the outstanding principal • Accounts & Expenses EXCLUDED • Sponsored Projects: 3 and 4XXXXXX • Student Scholarship Expenses and Accounts • Non-operating Funds: Endowments, Plant Funds, Agency Accounts, Outstanding Loan Principal, etc.

6. Tools & Resources • PowerPoint of how to Complete the Budget • Revised Excel Spreadsheet Budget Template • Shared College Dashboard in Analytics: Dashboards/UA Colleges/CALS • UA Foundation Financial Report (if applicable) • Unit Version of the CALS Temporary Commitment List • Your Expert Knowledge of Your Unit (most important)

7. Process • Review data from source documents (e.g. dashboard, UA Foundation, etc.) each quarter • Transfer data from the dashboard to the spreadsheet tabs via data export or manually • Review historical data, known requests and plans with unit head to develop a forecast for the remainder of the year and for future years Please document your assumptions in the appropriate spreadsheet tabs or via cell notes – helps explain the numbers

8. Projecting Quarterly actual data should inform your annual projections. Except for current year actuals, all figures on the summary report should reflect a FULL fiscal year, and should tie to source data or be based on logical and reasonable projections. • Straight Line Projections: linear growth throughout year. One quarter of expenses multiplied by 4; two quarters multiplied by 2, etc. • Cyclical or Seasonal Projections: non-linear throughout year. May be seasonal like summer session revenues and expenditures. Your expert knowledge of your unit is critical to know which method is appropriate to use. Please document your assumptions.

9. Budgeted Revenues • Use the Operating Revenues tab in the dashboard, “Budgeted Accounts,” to determine the budgeted revenues. Revenues will need to be projected for the current year and future years (use perm budget plus/minus projected amounts. • Filter on department name and fiscal year

10. Cash Style & Other Revenues • Use the Operating Revenues tab in the dashboard, “Non Budgeted Accounts,” to determine the cash style revenues

11. Restricted or PI-Controlled Revenue • Some units have funds controlled by a PI or restricted for specific purposes. Units can use this section to identify those funds. • This is optional based on unit need. • If used, the total revenues MUST EQUAL the total operating revenues from the source documents.

12. Salaries & Wage Expenses • Salaries & Wages are broken down into: • T/C Track Faculty • Non-T/C Appointed Professionals (AP) • Classified Staff • Graduate Assistants • Wages • Other (includes allowances, supplemental comp, etc.) • Employee Related Expenses Benefits (ERE) • Use the Operating Expenses and Personal Services & ERE tabs in the dashboard

13. T/C Track Faculty Expense • Use Personal Services & ERE tab in dashboard • Select all Period Numbers to date – e.g. 1 thru 3, 1-6, 1-9, or 1-13

14. Appointed Professionals • Use the Personal Services & ERE tab, “Other Appointed Professionals” query from the dashboard • Project full year figure for current and future years

15. Staff, Wages, Other, ERE • Use the Operating Expenses tab on the dashboard for staff, GA, wages, other salary, and ERE

16. Operating Expenses • Use the Operating Expenses tab in the dashboard • Total Operating Expenses must equal source documents

17. Operating Expenses cont’d • Development and Academic Program Development line items will require your intuition and knowledge of your unit. Please do not double count expenses. • Utilities are reflected separately in the dashboard – object codes beginning with 45XX only • Please include only the annual payments you are making on debt service or loans – do not include principal balance • Avoid duplicating loan payments in both Other Operations and Debt Service & Loan Payments • Reflect as Debt Service & Loan Payments only

18. Reasonableness & Review • Review all figures for reasonableness – does it make sense with what your instincts tell you? • Double check that formulas and links are working correctly • Highlight unit financial strengths and weaknesses with your unit head when you both review the budget together • The process, tools, and resources are a work in progress. We invite your comments and welcome suggestions to improve the Quarterly Budgets.

19. Conclusion • Got questions? CALS Admin Services wants to help. • Financial Questions • Madge Mock, 626-8353, mmock@email.arizona.edu • Data or IT Questions • Maria Marzinsky, 626-3577, marzinsk@email.arizona.edu • Walter Morrow, 621-3650, wmorrow@ag.arizona.edu