New Administrators Orientation Budget Management Lori Mc Mahon

New Administrators Orientation Budget Management Lori Mc. Mahon Associate Provost for Academic Budget and Personnel August 2, 2019

Learning Outcomes To gain awareness and understanding of… 1 2 3 4 Budget Actions, Requests, and Spend: • Budgeting Timeline snapshot • Fiscal year-end Timing Traps • Budget Call, Off-cycle; Permanent/recurring, 1 x/non-perm • OAA Allocations (FY 18, FY 19) • OAA Major Renovations $$ (10 yrs) • Sponsored Awards • FY 20 Budget Plans 5 Financial management best practices: • 4 Functional Areas, snapshot • Fiduciary roles snapshot • 4 Functional Areas, detail • Balancing your budget 6 Budget Planning and Re-calibration: Slides (#36 -57) for on-your-own review with your college business officer Central and AA Division Office Roles: • Financial Services departments • Academic Affairs Budget and Personnel (AABP) Budget Overview: • Fund types snapshot • “Colors of Money” snapshot • Tuition and Fees considerations Budgeting/Financial Management Resources: • Tableau Dashboards • Toolkit: Canvas courses 2

Accounts Payable Central Offices Financial Services Department Functions e. Commerce Financial Services General Accounting Budget Office Payroll Controller’s Office P-card Financial Data Admin Reporting & Fixed Assets Materials Management Student Accounts Treasury Services Tax Travel & Complex Payments

AABP’s Four Core Functions Division-level services BUDGET DATA INSIGHTS FACULTY PERSONNEL TRAINING

AABP’s BUDGET Function: Key Activities Budget planning, reporting and analysis “all fund types” to support data-driven decisions; ~$550 M division-wide; directly manage ~$220 M Academic Affairs, Office of the Provost Resource to division to plan and direct fiscal procedures, methods and systems; oversee policies and compliance such as “allowable spend” given fund type or purpose Oversee division’s annual Budget Call cycle Manage request process for tuition increments (SBTIs) and special fees: E&T, Majors, Application, Matriculation; confirm rate changes Monitor budget allocations, spending, variances, and fiscal year (FY) close out Financial approvals & signature authority on behalf of the Provost Business process improvements (e-workflows): lead/coordinate/SME Training to Business Officers & teams, Bi-monthly meetings; Manage TOOLKIT (canvas resource) 5

Summary of Fund Types Main fund types generally used on campus for spending purposes Type of Fund Managed By Fund Number Range Appropriated (aka: General Funds) Budget Office 100000 -119999 ITF: Overhead Receipts Treasury Services 120 xxxx ITF: Unrestricted (ie. Discretionary Funds) Treasury Services 137000 -139699 ITF: Grants & Contracts Grants/Contracts Admin. 5 xxxxx ITF: Restricted (ie. Scholarships) Treasury Services 6 xxxxxx Agency Treasury Services 83 xxxx Foundation Treasury Services N/A for Chart 1

Main Colors of Money at UNC Charlotte Money comes from (in the form of…) Types of Fund Purpose Restrictions Managed by State (Appropriations); Students (Tuition, General Fees); Misc. (surplus sales, etc. ) General Mainly Unrestricted. Must be used by end of fiscal year, 6/30/2 xxxx Budget Office Students/Customers ITF: Auxiliary Unrestricted Budget Office Donors (Gifts) Foundation (initially) Must be used consistent with purpose specified by donor, primarily restricted but may be unrestricted Treasury Services Research Agencies (Grants/Contracts Awarded) ITF: Grants & Contracts Must be used consistent with grant/contract terms; restricted Grants & Contracts Admin. Designated Student Fees (e. g. Debt Proceeds paid from student fees) Capital Restricted to designation Budget Office Other ITF Depends Treasury Serv.

$1, 642 in fees/46% of Tuition and Fees per Term. Does not yet take into account additional majors or course-level fees (see left for list). 8

Tuition and Fee Revenue $7, 096 AY Tuition NC Res/UG/12+ Credit Hours 3. 4% from AY 19 46% (+) of what a fully enrolled in-state UG student pays Fees are an increasing proportion of campus resources Fee rates finalized and applied to students in mid-July General Fees: Athletics, Health Services, Debt Service Other Fees: ID, Food Services Facilities, Campus Security, Transportation, Matriculation, UNC System, Student Association, Education and Technology (E&T) Fees specific to the student: Graduate Tuition Increments (School Based Tuition Increments– SBTIs) Special Fees: Majors, College, Course, International Student, etc. Distance Education and Summer Fees 9

ACADEMIC AFFAIRS Resource Decisions STUDENT SUCCESS FACULTY SUCCESS Mission Critical Core Define the intersectionality Essential Functions (strategy, scope, scale) Ensuring our ability to deliver high quality and remain a higher education going concern. Where is the ‘risk’ tipping point? OPERATIONS INSTRUCTION, RESEARCH, COMMUNITY ENGAGEMENT

Link to the Belk College of Business Tableau Dashboard: https: //10 az. online. tableau. com/#/site/uncctableauserver/views/COBProfile/COB? : iid=1 Used with permission 11

TOOLKIT: Canvas Courses BUDGET DATA INSIGHTS FACULTY PERSONNEL TRAINING

BUDGETING TIMELINE Major Areas Update budgets based on Budget Plan Spend ‘carryforward’ within first quarter (E&T, 15% or less) Q 1 July 1 – Sept 30 Course Releases for Spring, or next Fall (RODs, research, administrative roles) Spring course assignments (FT), informs PT needs Leave and Spring course assignments (FT, PT) Spend or commit 80% of all funds by March 1 (KPI) Commit and process all Summer School Pays by May 1, or earlier NTT Internal Promotions for upcoming year (complete reviews) Plan for Summer spend by April 15 th ”Receive/pay” all invoices as encumbrances by June 30 Q 2 Oct 1 – Dec 31 Q 3 Jan 1 – Mar 31 RODs for AA $$, submit by Nov 1 PT Spring assignments, submit by Nov 20 Next year’s new Faculty administrator appointments, AA 42 s for salary incr. NTT Internal Promotions submit AA 42 s for salary increases Fall course assignments (FT), informs PT needs Q 4 Apr 1 – June 30 New Faculty Startup Negotiation / $$ Requests Summer Administrative Assignments, submit stipend special pays by May 1

Fiscal Year End Timing “Traps” Travel expenses incurred in May and June, reimbursements submitted after June 10 may not get paid in that same FY (expense rolls over). Pcard spending must be completed by early May so expenses hit early June for payout. Pcard transactions completed in June = expenses will not pay out until next fiscal year. Temp wages earned by students in June will not be paid until July of the next fiscal year. Fourth-quarter Special Pays to faculty submitted as EPAFs after May 15 won’t show in a lapse report until June 810…very, very late for the college business manager to pull/spend the $$ and receive goods, then close out invoicing by June 25 th. Leaves $$ on the table. 14

Fiscal Year End Timing “Traps” cont’d Capital equipment ($5 K and over) Open encumbrances Process includes writing bid requirements, submit to purchasing, bid is posted, vendors respond to bids, bids are reviewed/rated by your team, vendor selected, purchase(s) made, goods or services delivered and then ‘received’ in 49 er Mart, invoice submitted by vendor, invoice paid). Invoices/expenses not paid by June 30 th will pay out next FY and eat into your new year’s budget. Materials Management (Purchasing) requires a bid process that can take 12 weeks or more to complete. These invoices, not-yet-paid, need to be actively monitored. A vendor may need to be contacted directly to ensure the invoice is accurate/submitted so it can be paid by June 25 th, earlier is best. 15

REQUEST APPROACH Budget Call Cycle Off-Cycle REQUEST or ALLOCATION TYPE Permanent $ One-Time $

EXAMPLES Salaries, Operating Faculty Start-ups; Special Projects, Major Renovations, Equipment Replacement TYPE Recurring = Permanent $ Non-recurring = One-Time $

AA FY 17 -18 Allocations $35, 000 $45, 453, 009 PERM; $48, 917, 643 ONE-TIME $94, 370, 652 TOTAL ALLOCATIONS, Perm and One-time 31% $30, 000 27% $25, 000 $20, 000 $15, 000 $10, 000 25% Budget Call ONE-TIME $25, 625, 223 17% Off Cycle PERM $29, 336, 515 Off Cycle ONE-TIME $23, 292, 420 Budget Call PERM $16, 116, 494 $5, 000 $0 18

AA FY 18 -19 Allocations $43, 178, 284 PERM; $43, 178, 284 ONE-TIME $80, 390, 278 TOTAL ALLOCATIONS, Perm and One-time 33% $30, 000 30% $25, 000 Off Cycle ONE-TIME $20, 000 21% 17% $15, 000 $10, 000 Budget Call ONE-TIME Off Cycle PERM [VALUE] Budget Call PERM [VALUE] $5, 000 $0 19

10 -year grand total of major renovations: ~$45 M 20

Sponsored Awards FY 14 -FY 18 Sponsored Awards FY 14 – FY 18 21

46. 64% of Total 22

Personnel ~74% of Total OTP ~$300 M Total

Financial Management Functional Areas Role focus and responsibility similarities and differences among levels all working to ensure financial sustainability Technical and behavioral skills from fundamental to advanced Communication Supervision, Management, and Leadership skills to address change management, technology, and data insights PLANNING and PROJECTIONS BUDGETING REVENUE REPORTING and ANALYSIS ACCOUNTING

Horizontal (role scope) and Vertical (role level as focus) similarities and variations are defined in job responsibilities. Process integrity (compliance), decision-making, and communication are shared responsibilities. AA is the campus’s “largest client” with mission-critical activity. Executive/Institutional Chancellor (fiduciary head) Vice Chancellors (VCs) per Divisions AVCs /APs per campus org chart Academic Affairs Division 86% of campus spend (excludes capital projects) Central Office Associate Vice Chancellor (fiduciary head) Assistant Vice Chancellors Executive/Directors and their Teams Division Office Provost (fiduciary head) Senior AP and Associate Provost AABP Team College Office Dean (fiduciary head) Business Officer Business Administration Team Academic Department Chair/Director (fiduciary head) Business Services Coordinator Administrative Assistant

FOCUS IMBALANCE leads to course correction challenges, added costs and inefficiencies: root causes indicate decision-making, communication, and/or process integrity (compliance) are not aligned or timely. Time/effort for corrections adds to the degree of task compression; crowds out focus on planning, projections, analysis, and advising to better Inform decisions Focus Imbalance. Little or no focus on planning, projections, budgeting, reporting and analysis contributes to lack of effective and defendable budget decision making, prioritized adjustments. This further contributes to on-going specific and overall shortfalls or structural deficits (aka, a disruptive environment) Time/effort required for corrections or adjustments shifts % of focus for all roles and causes process “churn and return”

Ensure Financial Sustainability Mission focus, define goals and priorities Define strategic and longer-range financial goals as a plan for acquiring and using resources Identify and gather funding sources needed, by when (fiscal year timing and cashflow) Identify timely, corrective measures (horizontal, vertical) Institutional Plan Types (…to what extent departmental or college plan types? ) Academic Programs Enrollment Student Services Research Financial Human Resources / Workforce Technology COOP (Continuity of Operations Plan) Capital (facilities, infrastructure) Development (Advancement) Legal (Institutional Integrity) Etc.

College and Unit Core Commitments Recurring and Non-recurring Annual, Multi-year, Year-over-Year (YOY) Personnel (~74% of division’s est. FY 20 spend) Other Than Personnel (OTP) Professional development / Travel Start-up for faculty Recruitment Accreditation Faculty and staff salaries (FT) (61. 16%) Administrative Stipends for faculty (1. 01%) Course releases: Admin roles, RODs, Internal Research ~$3 M/1. 01% colleges + ~$230 K/. 57% AA = ~$3. 23 M PT Faculty $7. 2 M/. 14% college baseline + ~$2 M AA = ~ $9. 5 M GA/RA graduate wages $18. 4 M/6. 22% colleges/major units + $1. 4 M/3. 63% AA Undergraduate wages 3. 5 M/1. 1% colleges/major units + $. 5 M/1. 22% AA Symposia/Honoraria Events, Other Scholarships/Other Awards Contracted Services Lab/studio equipment Computer equipment Office Operations (telecom, supplies)

Managing Budgetary Opportunities General and Non-general funds Align with goals and priorities Identify and gather funding sources needed, by when (fiscal year timing and cashflow) Maintain a balanced budget: timely corrective measures; minimize fluctuations annually and year-over-year Resources gathered, collected, donated, or awarded: Many “colors of money” • • Appropriations (General funds) Tuition / Fees Endowment Income Gifts / Scholarships (Restricted, Non -restricted) • • Grants & Contracts Re-charge Services Self-supporting Programs Other

5 Principles REVENUE PRINCIPLE Aka: Revenue Recognition Principle Defines the point in time in which bookkeeper in the Office of the Controller may record revenue. EXPENSE PRINCIPLE Expenses occur when the goods are received or the service is performed, regardless of when the business is billed or pays for the transaction. MATCHING PRINCIPLE Match the revenue source with the expense item. Expenses paid aligns with revenue recognition period. COST PRINCIPLE Historical costs are used, not a potential, future resale value. OBJECTIVITY PRINCIPLE States that you should use only factual, verifiable data in recordkeeping, never a subjective measurement of values. Even if the subjective data seems better than the verifiable data. Source, Blog: “Five Important Principles of Modern Accounting, ” Collat School of Business, University of Alabama at Birmingham

Practices Accounting standards and best practices for financial (external focus) and managerial accounting (internal focus, used by AA division) Audit preparation and responding to audit recommendations/findings Financial Managerial Higher Ed guided by FASB and GAAP Internal controls and reporting Benchmarking (internal and external) Process transformation (business delivery models, cost containment, new systems, and training) Financial accounting and reporting Scorecards and dashboards Cloud or hosted system(s) preparation or implementation Communicating financial information to stakeholders Effective collaborations across campus Adapted from: NACUBO, Higher Education Accounting Forum 2019

Managerial Analytics / Data Insights Reporting Answers “What ” Translates raw data into information Analysis Answers “Why” Translates data and information into insights Presents and recommends options based on quantitative and qualitative considerations VALUE PROPOSITION: All elements are required to achieve the full value DATA + REPORTING + ANALYSIS + DECISION + ACTION

Balance Your Budget Manage-out and up to Leadership; Manage Down to Faculty and Staff REVENUE EXPENSES OPERATING PERSONNEL PROGRAMS and OPERATIONS FACULTY LAPSE SALARY RESTRICTED FUNDS STRATEGIC INITIATIVES 90% ANTICIPATED FEE RECEIPTS STRUCTURAL SHORT-FALLS Manage Budget Fluctuations ( + / - ) How intentionally do you: • Review your budget? • Re-calibrate or reallocate given changing factors and influences? • “Add” or ”sunset” programs? • Build and fully secure revenue, before committing new expenses? 33

Contacts – “ABC & T” • Academic Affairs: Academic Affairs Budget and Personnel website: http: //provost. uncc. edu/academic-budget-personnel Lori Mc. Mahon, Associate Provost for Academic Budget and Personnel, 7 -5774 Tonya Mc. Mannen, Budget Manager/General Funds (State Appropriations focus), 7 -5772 Elizabeth Moll, Budget Assistant Director/All Funds, 7 -5521 • Budget: Budget and Financial Analysis Office website: http: //finance. uncc. edu/budget-office Ken Smith, Director, x 75805 Vacant, Associate Budget Director, 7 -5599 Hong Vu, Budget Management/General Funds, 7 -5003 • Controller: General Accounting website: http: //finance. uncc. edu/controllers-office/general-accounting Laura Williams, Controller, 7 -5756 Amy Hisler, Associate Controller, 7 -5786 • Treasury Services: Treasury Services website: http: //finance. uncc. edu/about-us/treasury-services Greg Verett, Interim Director, 7 -5432 Sonja Austin, Financial Reporting and Outreach, 7 -5811

Questions?

Budget Planning: How to Re-Calibrate Know Your Data / Cost Drivers Gain Insights Planning Re-Calibration Budget Reduction Strategies as Options Budget Re-Alignment Key Questions Budgeting Reflection Questions

Chart Your Cost Drivers FY 18 Budgeted vs Expensed 1 3 Category 1: Budget exceeds expenses. Should the budget be revised down next year? Category 3: Expenses almost double the budget. Is this overage an outlier or a pattern? CONTEXT TO EXPLORE WITH LEADERSHIP At a glance, this data reveals expenses far exceed the overall budget producing a year-end deficit. Is the overage due to unplanned expense, undisciplined spending, or a lack of reporting/adjustments? Is the deficit typical and if so, is it covered each year by another source (why/why not)? Have there been attempts to permanently re-allocate budget to, and within, this unit to resolve on-going shortfalls? Why/why not? Are processes in place to regularly review/adjust budgets permanently?

Chart Your Cost Drivers Year-Over-Year data FY 16 -18 Budgeted vs Expensed 16 17 18 16 17 18 At a glance, what does the data reveal? What questions are prompted. What context might you need, why?

Chart Your Cost Drivers Ask what the Year-Over-Year data reveals FY 16 -18 Budgeted vs Expensed Example 1: Context analysis 16 17 18 16 17 18 Rising costs. What might account for cost increases? What might account for FY 18 costs exceeding a budget that was revised upward to accommodate an acceptable trend?

Chart Your Cost Drivers Ask what the Year-Over-Year data reveals FY 16 -18 Budgeted vs Expensed Example 2: Context analysis 16 17 18 16 17 18 Cost decreases and budget permanently adjusted in FY 17. Were the decreases intentional, meaning is the financial head making cost control decisions?

PLANNING RE-CALLIBRATION Operationalize the Mission thru Focus. Confront Issues • • • Changing higher education environment Structural deficits. Deep, on-going shortfalls? Be strategic. Go beyond incremental ‘wish lists. ’ Integrated planning process is the ideal; then, integrate resources into the plan. Stay within scope of organization -- again, Focus. Fund, more fully, the most strategic, prioritized initiatives. • Minimize ‘additive’ behavior for others. Implement, assess, and adjust • Refine, re-align, reduce, or sunset programs or services Adapted from: Planning for Higher Education, Society for College and University Planning, 2015, www. scup. org/phe

BCOB Budget Plan Sample Figures are not actual budget estimates

Resource Change Drivers Most impacted by general economic conditions Government Funding, State and Federal Enrollment Campus, program (growth or decline, which levels, which segments? ); SO funding formula based for programs (Cat I-IV) which impact state appropriations; Mix of students: domestic and international, UG and Grad, traditional and non-traditional; -- impact of waivers and tuition discounting/financial aid; -- graduation rate/retention variables Fundraising (impacted by general economic conditions): Annual Fund, Campaign, College- or Program-specific, etc. Unusual or Costly Events Natural disasters and liability claims not covered by insurance; commodities/utilities/construction cost rate changes; etc. Recapture of Funds Internal cuts (1 -2%) for re-distribution or to build a reserve

Cost Savings Decision Influencers Institutional or College Level TIME – What period do you have to address the fiscal problem? • Budget cut required in the current fiscal year? 2 -3 years? • Do you routinely plan for small reductions at a ‘central’ level? Why, why not? INFORMATION ? • Is the information available strong and reliable to make sound decisions? • Are you testing your underlying assumptions with options presented? • Bias impact -- Is the analysis recommendation overly optimistic, pessimistic, conservative, high risk, politically influenced, other? RISK TOLERANCE • Are large investments proposed/approved when funding is stagnant, declining? • Are there practices (triggers, codicils) in place to modify investment or commitment decisions should fiscal conditions change for the worse?

Forms of Budget Reductions FREEZE An interim step when leadership needs time to consider impact and options. Not a reduction, but it is perceived as one by faculty and staff. Travel is often considered ‘discretionary’ during a freeze. Nonessential item purchasing/activities should be curtailed. Personnel hires are often put “on hold” until the budget position is better known. ACROSS-THE-BOARD CUTS (ATB) Simplest and most expedient way to manage a reduction. Unit budget managers are instructed to cut “X%” by “X” date and report action. Funds recaptured are used to offset financial problems or as a tool to avoid deficits. Unit leadership most often has flexibility to determine where cuts will be made. Reductions felt differently from one unit to another (widens “have/have not” gaps). TARGETED REDUCTIONS Cuts in certain line items to capture savings (either temporarily or permanently)- e. g. travel, honoraria, symposia, retreats, training, equipment, renovations. Reduces flexibility for unit leadership. Sometimes eliminations are made to services or programs in consultation with leadership.

Forms of Budget Reductions RESTRUCTURING Dramatic approach for reducing institutional or college/unit-wide costs. Can sometimes feel threatening or painful to personnel involved in a re-org. Combines programs and reduces administrative overhead. Often changes the way an organization operates by requiring new procedures or investing in technology solutions to gain efficiency and effectiveness. Sometimes involves changing vendor relationships, service terms or payment structures/timing. MODIFYING OR ELIMINATING PROGRAMS OR SERVICES Difficult decision and must be prudently considered based on changing student demand organizational priorities. Careful consideration is given to timing of the effective date and commitments (to students or others) while implementation is phased-in. Requires thoughtful, clear, consistent, direct communication with support to students or others making course, program or career changes.

BUDGET REDUCTIONS: COLLEGE/UNIT OPTIONS CUT BACK on NON-ESSENTIALS “Every unit has them, but no one talks about it” – sound familiar? Assume a 1 -2% cut back in all operating, requiring request justifications for special needs thereafter that are prioritized centrally (e. g. a new program launch. ) Doing More with Less. This mantra works when it is possible to make easier cuts. Beyond that, it likely means “do without” or “do something fundamentally different. ” Avoid ‘feast or famine’ behavior. Adding to a budget when funds are relatively available, versus cutting budgets (beyond the fat) at times of scarcity creates a practice of ‘hiding resources’ within little-used account pools/lines. It also contributes to fiduciary heads ‘holding resources’ until April, May or June that result in non-strategic, quick-spend decisions.

BUDGET REDUCTIONS: COLLEGE/UNIT STRATEGIES LEAST DRASTIC MEANS SHOULD BE CONSIDERED FIRST A note about Personnel reductions. Eliminate or reduce the need to impact personnel. Remember, “reductions in force (RIF)” require the University (not the unit) to be in “financial exigency. ” If a position is dependent upon a specific source of funding, the position description must explicitly state the fund/type (range or specific fund number) upon which funds must be sufficiently available. HR consultation is required PRIOR to making or communicating any personnel cut decision, and when faculty are involved, the consultation must involve the AP AABP. In many cases, Legal Affairs may also need to be consulted.

BUDGET REDUCTIONS COLLEGE/UNIT STRATEGIES BE STRATEGIC AND TARGETED … in all resource decisions. CRITICALLY REVIEW SPEND TRENDS Extend replacement cycles for equipment and computers. Manage allocations and spend with an eye to results, on-going. HARNESS IDEAS. Once you have an approach or strategy for your budget cuts ask for suggestions from colleagues on how to implement it. Outline the dimensions of the problem and ask: “In what ways can money be saved or reductions made in your unit? ” “What suggestions do you have for change? ” MAKE FEW PROMISES. Offer clear, accurate information early. Provide updates when you know new facts. Acknowledge when you don’t. Serve as an empathetic colleague, reframe the issue if negativity persists.

Budget Re-alignment: Key Drivers 1 “Balance the Budget” Need -- consider permanent reductions with an overall 2 -10% yield across 1 -2 years to create a centralized pool for re-allocations or for continency needs (e. g. new program, gap-year funds) -- limit costs to students despite the cost of doing business increasing 2 Align or re-align to strategic planning efforts 3 Support newly prioritized initiatives 4 Further invest in more recently launched strategic programs -- will the new demand produce revenue, such as receipts collected through a major’s program fee, that will directly offset costs? If not, how will you reallocate existing resources to ensure adequate support? Adapted from: Prioritizing Academic and Administrative Programs, Conference Workbook, March 21 -22, 2016, Denver, Colorado. Conference offered through Academic Impressions.

Budget Re-alignment: Key Drivers 5 Improve overall efficiency and effectiveness 6 Respond to accreditation requirements 7 Respond to governing entity requirements (unfunded mandates) 8 Tackle targeted shortfalls 9 Create a modest contingency or reserve fund -- e. g. staff vacancy reallocation; centralize administrative services; eliminate redundancies -- e. g. State Legislation, System Office -- Dean’s office level only, not at the department level Adapted from: Prioritizing Academic and Administrative Programs, Conference Workbook, March 21 -22, 2016, Denver, Colorado. Conference offered through Academic Impressions.

BUDGETING REFLECTION QUESTIONS 1 WHAT ARE YOUR KEY AREAS OF SPEND (aka COST DRIVERS)? Identify the key areas of spend – go beyond account line definitions. Consider costs that include the following, plus others most relevant to your college or service unit sub-specializations: PERSONNEL Salaries / benefits (FT) PT Faculty release (full costs) Administrative stipends ROD course coverage College-funded research release Backfills, internal promotions, market top -offs for competitive faculty hiring Temp Staff wages Student wages Grad Assistants (non-GASP) Research Assistants (or Administrative) Under Graduate OTHER THAN PERSONNEL (OTP) Start-up for faculty Travel/Professional Development Equipment (new/replacement) Lab, Studio, Specialized facilities/fabrications Computers/peripherals Copiers/printers Contracted Services Recruitment Accreditation Symposia/Honoraria Office operations (telecom, supplies) Marketing/Printing/Advertising Memberships/Subscriptions

BUDGETING REFLECTION QUESTIONS 2 WHAT DOES YOUR COLLEGE/UNIT FUNCTIONAL BUDGET SAY ABOUT YOUR PRIORITES? 2. A. Are your priorities aligned with Divisional priorities? 2. B. In what ways is your answer similar or different from your existing budget? 2. C. Do you see any on-going budget short-falls year over year? If so, what budget realignment approaches will you use to resolve the differences? 3 HOW ARE YOU DISTINGUISHING FROM YOUR “NEEDS” AND “WANTS? ” 4 USING REPORTING AND ANALYSIS, HOW ARE YOU RESOLVING ANY DIFFERENCES BETWEEN NATURAL AND FUNCTIONAL ACCOUNTING? 3. A. Consider a unit-wide prioritization – validate a “through line” exists. 3. B. Consider re-allocation process, as needed. Imagine a 5 -year review cycle. 3. C. Review legacy programs or projects with low demand. 3. A. Consider grouping/matching ‘account line’ activity (natural accounting) with program or project budgets (functional accounting) so that departmental and college leadership can view their spend more in line with the way they function (which is not like an accountant).

BUDGETING REFLECTION QUESTIONS 5 HOW HAVE YOU LEVERAGED REPORTING TO… 5. A. Understand historical trends in Revenue and Expenses? 1) Use standard increments of 3, 5, or 10 years for analysis. 2) Establish standards for report format and content to support reliable year-over-year comparisons 3) Ensure management notes capture reasons for key changes from one year to the next to memorialize point-in-time context. Describe reasons for outlier data points. 5. B. Use Monthly Spend Reports and history to identify budgets that are not actively managed, reviewed, or re-aligned on a recurring basis? 1) Do you see final quarter purchasing that does not align with truly essential needs? 2) What actions do you take, and when, to re-allocate base budgets? 5. C. Use E&T Spend history to: 1) understand equipment or software replacement needs? 2) understand the distributed level of technology or education spend across all fund sources? Should re-alignment occur? 5. D. Use historical trends to inform projected budgets? 1) July 1 Position. What pre-existing commitments reduce the balance available for further commitments?

BUDGETING REFLECTION QUESTIONS 6 HOW HAVE YOU LEVERAGED REPORTING TO UNDERSTAND ON-GOING BUDGET SHORTFALLS? HOW DO YOU ASSIST LEADERS TO RESOLVE STRUCTURAL SHORTFALLS BY PERMANENTLY RE-ALLOCATING EXISTING FUNDS? 6. A. Do you have a practice of monthly budget status updates? This means the budget manager meets face-to-face with the financial(usually defined as the dean, department chair, or program head). 6. A. 1. Use bi-weekly and then weekly updates as you progress more deeply into the final quarter (April-June). 6. A. 2. Identify and submit faculty ”special pays” by May 1, so that the financial commitment hits Banner by June 1 to reveal a true lapse balance and eliminate the potential for deficits. 6. A. 3. Close open encumbrances by June. 6. B. Does the Financial Manager sign/date each budget status report to signify their true understanding of the point-in-time financial position, and pace of spend for full year? 6. B. 1. Do you discuss Monthly Spend Report implications? 6. C. Are there college- or service unit-wide established procedures outlined as expectations should a “total budget” short-fall, or deficit, exist? This should include steps required beyond a budget manager simply temporarily moving revenue between “account lines/pools” as a reconciliation process.

Contacts – “ABC & T” • Academic Affairs: Academic Affairs Budget and Personnel website: http: //provost. uncc. edu/academic-budgetpersonnel Lori Mc. Mahon, Associate Provost for Academic Budget and Personnel, 7 -5774 Tonya Mc. Mannen, Budget Manager/General Funds (State Appropriations focus), 7 -5772 Alicia Bartosch, Budget Assistant Director/All Funds, 7 -5521 • Budget: Budget Office website: http: //finance. uncc. edu/budget-office Vacant, Associate Budget Director, 7 -5599 Hong Vu, Budget Analyst/General Funds, 7 -5003 • Controller: General Accounting website: http: //finance. uncc. edu/controllers-office/general-accounting Laura Williams, Controller, 7 -5756 Ron Sanders, Assistant Controller, 7 -5786 • Treasury Services: 29 Treasury Services website: http: //finance. uncc. edu/about-us/treasury-services Greg Verett, Interim Director, 7 -5432 Sonja Austin, Financial Reporting and Outreach, 7 -5811

Questions?

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