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FY 2010 BUDGET DEVELOPMENT Training for budget development staff 10:00 12:30 p.m., January 27 1:00 3

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Budget unrestricted revenue based on approved revenue agreements/contracts. Do not budget revenue ... Budget personnel based on employees on board at 1/31/09 ... – PowerPoint PPT presentation

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Title: FY 2010 BUDGET DEVELOPMENT Training for budget development staff 10:00 12:30 p.m., January 27 1:00 3


1
FY 2010 BUDGET DEVELOPMENT Training for budget
development staff1000 1230 p.m., January
27100 330 p.m., January 281000 1230
p.m., January 29Library Computer CenterLRC
2
Agenda
  • Operational Instructions
  • Zero-base Budgeting
  • FY 2010 Revenue Budget
  • Budgeting to support Goals and Objectives in
    accordance with guidelines
  • Line-item Analysis
  • Forms
  • Budget Development Principles
  • Budget Development Calendar

3
Finance Overview
4
Job Cuts Get Brutal Sprint, Pfizer, Home Depot,
Caterpillar
  • January 26, 2009 1034 AM ET Kirk Shinkle
    Permanent Link Print
  • The job loss tally so far today 54,500. Cuts are
    coming across industries as further weakness in
    the economy keeps major employers slashing away.
  • On the same day it agreed to buy rival drug maker
    Wyeth, Pfizer said it would cut 15 percent from
    its combined workforce (that's a bit less than
    19,500 jobs). Meanwhile, Caterpillar is faring
    poorly in the global recession. It's cutting its
    workforce by 20,000 including 11 percent of its
    workforce, or 12,000 jobs, and 8,000 contractors.
    Home Depot, a lingering victim of the downturn in
    both consumer spending and housing, said it would
    slash another 7,000 jobs as it shutters its
    high-end EXPO business. And finally, Sprint
    Nextel is eliminating 14 percent of its
    workforce, or 8,000 jobs.
  • Update Add another 6,000 to the tally above.
    Philips Electronics is cutting too.

5
Revenue Shortfalls
  • TN budget crunch calls for 20 percent cuts
  • NASHVILLE - Tennessee Gov. Phil Bredesen says a
    budget shortfall that is now expected to reach 1
    billion will require cutting up to 20 percent out
    of most state departments' spending plans.
  • -

6
(No Transcript)
7
Budget Development Approach
  • Revenue (FY2010)
  • Budget unrestricted revenue based on approved
    revenue agreements/contracts
  • Do not budget revenue tied to VACANT positions
  • Budget restricted revenue based on awards that
    have been received

8
ZERO-BASE
  • Zero-Base Budgeting
  • Assumes current year spending is unjustified
  • Starts the budget development process at a base
    of zero
  • Based on decision packages
  • Systematic logical approach based on prioritized
    programs and objectives
  • Matches spending levels to services performed

9
Budget Development Approach
  • Expenditures (FY2010)
  • Personnel
  • Budget personnel based on employees on board at
    1/31/09
  • Do not budget personnel on unapproved restricted
    sources of funding

10
Budget Development Approach
  • Expenditures (FY2010)
  • Non-Personnel
  • Justify all non-personnel expenditures based on
    goals and objectives for your area
  • Provide a detailed list of fixed cost such as
    contractual expenses (i.e. name of contract,
    amount of contract) , board of trustee expenses,
    etc.
  • Provide a monthly budget for all non-personnel
    expenses

11
Budget Development Approach
  • Decision Package (FY2010)
  • Decision Package will be provided to the
    President through the Senior Vice President of
    Finance
  • Revenue Package
  • Each source of revenue will be validated and the
    appropriate documentation reflecting the revenue
    amount will be attached
  • Operating Expenses
  • Report reflecting all positions, titles and
    current salary
  • Personnel report reflecting current salary, 2010
    budget, variance and any comments as entered by
    division/department
  • Non-personnel expenses by account code

12
Budget Development Approach
  • Decision Package (FY2010) cont.
  • Budget Analysis
  • Cuts included on separate form for those
    divisions that submit budgets which are not in
    accordance with the guidelines
  • A consolidated list of fixed cost such as
    contractual expenses (i.e. name of contract,
    amount of contract) , board of trustee expenses,
    etc.
  • A consolidated monthly budget of all
    non-personnel expenses

13
A Variety of Types to Indicate Performance
  • Workload - activity volume
  • Efficiency amount of service per
    resource
  • Outcome results of actions (change that has
    occurred)

Our total cost to provide meals is 3.45 per meal!
Program enrollment is up 35
14
Develop proposed operating budget that supports
goals and objectives
  • 1. Review goals and objectives
  • 2. Review performance measures relating to
    achievement of goals and objectives
  • 3. Review historical methods of achieving goals
    and objectives
  • 4. Review historical costs of achieving goals
    and objectives

15
Develop proposed operating budget that supports
goals and objectives
  • 5. Analyze line-item operating budget within each
    program to determine required funding levels
  • - Historical trends, benchmarking
  • - Identify opportunities to increase efficiency
    through changes in operations and
    adjusting workloads

16
Develop proposed operating budget that supports
goals and objectives
  • 6. Analyze impact of proposed budget cuts on
    achievement of goals and objectives
  • - How will performance be affected?
  • Workload measures
  • Efficiency measures
  • Outcome measures

17
Budget Reduction Strategies
  • Cost, Purpose, Alternative, Effect on
    Performance, Consequences, Benefits

18
Forms for 2010
  • Initial budget submission includes official forms
    found on the Finance website http//www.mmc.edu/fi
    nance/budgetdev09.html
  • Divisional Budget Package includes
  • Revenue Budget Planning Worksheet
  • Unrestricted Revenue Explanation Worksheet
  • Additional Expenses Required to Generate Revenue
    (if applicable)
  • Restricted Revenue Worksheet
  • Methodology and Justification of projected
    revenue (created by the revenue generators)
  • Revenue budget (printed from WebFocus after
    budget is entered)
  • Unrestricted Expenditure Explanation Worksheet
  • Vacant Budget Summary
  • Position Justification Worksheet (Vacant / Newly
    Created)
  • Non-Personnel Budget Worksheet
  • Organizational Chart including each position and
    vacancy status and Identifying position slated
    for elimination
  • Divisional Budget (printed from WebFocus after
    budget is entered0
  • Budget reduction strategies must be prioritized
    by department
  • Identify changes in performance as a result of
    proposed budget cuts

19
Jan 09 Online budget development training Web
page updated for FY2010 Jan 12
Banner Budget Development open Jan 27-29
Budget Development Training Feb 23 - 24
Divisional Revenue Budget Review w/S.V.P. for
Finance Feb 24 - 26 Validation of Revenues by
Financial Planning March 02 Distribution of
Approved Revenue Budget and Expense
Guidelines March 06 Central Administration
Review
Mar. 17 Final Divisional Expense Draft
Budget Mar. 30 - Finance Review
Expenditure Budget Apr. 03 with
Divisions Apr. 07 Divisional
Expenditure Budget Review w/S.V.P. for
Finance Apr. 09 - 16 Finalizing budget
Format and
Presentation Apr. 13 - 17 BOT Finance
Chairman Review May 07 Teleconference
with Finance Committee May 14 Present to
BOT
20
TO DO LIST
  • Engage Management Finance early in the process
  • Analyze current Programs, objectives
    performance measures
  • Identify measures to increase efficiency wherever
    possible
  • Adjust budget accordingly
  • Identify link changes in services/performance
    measures to budget adjustments
  • Submit Budget Request with supporting
    documentation to Finance to ensure completion and
    to be scheduled for meeting with S.V.P. of
    Finance
  • Submit completed Divisional Budget Package with
    reviewed documentation to S.V.P. for assessment
  • Notification will be provided when budget has
    been ratified by Board of Trustees

21
RESOURCES
  • Financial Planning, Budget and Analysis staff are
    available to assist departments throughout the
    process
  • Contact your budget analyst to schedule
    assistance in developing your budget request

22
Resources
  • Budget Administration x-6768
  • Bob Youngblood x-6858 (SOM budget issues)
  • Alexis Dean x-6871 (Central Admin, Dentistry
    and Graduate Studies)
  • Helen Robinson x-6240 (Budget Administration
    Issues)
  • Palace Reid x-6421 (Budget Administration
    Issues)
  • George Williams x-6815 (All Restricted Issues
    Fund s, awards, etc.)
  • Jared Orr x-6553 (Labor distribution)
  • Venecia Watkins x-5885 (Invoice Issues, YTD
    Activity, journal entries)
  • Larry Holden x-2947 (Finance Security, org
    codes, approval ques)
  • Erika Graves x-5960 (reports, system issues)
  • Dave Floyd x-6307 (Banner, and WebFocus and
    Excel training)
  • Karen Owens x-6217 (cell phone and long-distance
    billing)
  • Tim Cox x-6960 (Telephone operations)
  •  
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