University Budgets. October 12, /10/2016. From an Academic Department Perspective. Goals. Recording date of this workshop is

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1 University Budgets From an Academic Department Perspective October Recording date of this workshop is October 12, 2016 Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation. Goals To alter your negative perceptions on Bean Counting and Bean Counters To reveal the secrets of the budget statement and make them meaningful. To create an intimacy between you and PBL, Accruals, F&A Accounts, and Endowments. I ll share definitions, helpful hints, and even suggest ways to manage your budgets I ll show you where to find meaningful data that measures department productivity. 3 1

2 udget + Project = Account Formula: Allocations Expenses Encumbrances = Balance 1374 Budgets 45,066 Accounts 33 Accounts per Budget 4 Program/Subprogram Code 5 Programs 1 through 10 are State Funds Programs 11 through 14 are Grants and Student Fees and Service Centers Gift Accounts (Also called 17 A Accou 6 2

3 7 Program 12 are Equipment Grants 8 Object Titles Object Codes are Sorts that Occur within the Account Statement 9 3

4 Sub Object Titles Sub Object Codes 10 Budget Statement Layout Expense Summary by Object Expense Summary by Object/Subobject Expense Detail By Object/Subobject Revenue by Source Subsource Revenue detail

5 13 14 PBL State Funded Budget (Covet PBL) Permanent Budget Level or Permanent Base Level or Permanent Base Line (PBL) PBL applies only to your State funded Budget Departments normally receive the same PBL allocation each year and may include any of the objects. PBL reoccurs, which makes it very special. A Mass Salary Increase (MSI) will increase your PBL A Budget Cut will Decrease your PBL Not all funds in your state accounts are PBL. State accounts also have temporary allocations which are normally one time allocations that you cannot depend on reoccurring. Unfortunately PBL is becoming extinct because of many years of budget cuts. F&A returns are considered temporary state funds. 15 5

6 Accruals Only occurs on State Funded, PBL Positions Each PBL position is given an allocation which is reduced each pay period. (mini-budget) Accruals are the difference between the allocation and expenses for PBL positions. Vacant positions Professional Leave PBL Faculty paid with grant funds PBL positions are tracked centrally and by your area. Some accruals automatically come back to your area, some are retained centrally for four months and only returned upon request. You need to know all about accruals. Getting accruals back in your department is one of the few ways to obtain PBL! SEE Executive Policy Manual, Policy #3, Salary Accruals and Adjustment Policy and Procedure. Gives you all the detail governing accruals. 16 Some Definitions and Helpful Tidbits The fiscal year runs from July 1 to June 30 The fiscal year is identified the year it ends. (7/1/2012 to 6/30/2013 = Fiscal year 2013) The biennial always starts on an even fiscal year, however, because the beginning of that fiscal year is 7/1 of the previous calendar year, the biennial is often referred to as Biennial when in fact it is fiscal years 2012 and Carry Forward (Object 19). Balance at fiscal year end, positive or negative, is carried forward into the new fiscal year. Applies to most accounts except Grant and Contract accounts which must be spent by end date and Omnibus Equipment which must be spent by the end of the biennium. Object 07 (Benefits) are free on your State Funded Accounts. (Programs 01 through 10) 17 Account Automatic Allocation cancels Expenses!! Free Employer Contributions (Fringe Benefits) 18 6

7 F&A accounts F&A Accounts = Facilities and Administration-generated from Grants and Contracts. They are in Program 06, considered state funds, project always starts with 99. Projects for regular state funds start with 00. F&A used to be overhead, then changed to Indirect Costs, now F&A. MTDC (Modified Direct Costs) was 50% effective for start dates 7/1/2011 through 6/30/2012, then 51% from 7/1/2012 through 6/20/2016. It is 52% starting from 7/1/2016 through 6/30/2017 and 53% starting 7/1/2017. A multiple year grant keeps the MTDC based on the first year of the grant Suggestions for Managing Accounts Golden Rule: Thou shall not overspend thy account without Chairperson prior approval. (You want a plan to cover all deficits!) Make sure every account in your department has a person responsible for it. (That person may be you) Remember YOU are ultimately responsible for the total bottom line of all accounts assigned to your department. Hire, and support a good fiscal person. That person should provide every person responsible for an account with: $ available to spend Forecasts for the year Regular financial updates A financial operation that is in accord with university, state, and federal polices, procedures, regulations and laws. A monthly Reconciliation of each account! 21 7

8 Managing Accounts (Cont) Divide and Conquer Anytime you have a special project or an expense that is substantial and ongoing, have your finance person create another project for it and delegate budget responsibility to a faculty or staff member. Possible PBL $$$ savers. Look into creating student fee accounts (15F) for expenses incurred in student laboratories Service Centers (15T) are break even operations designed to bring income to offset expenses. Revisit your departmental policy on F&A Returns. Tax Exemption on research equipment. (Washington State taxes itself 7.8%!!.) Document all commitments, both to you and from you and make sure your finance person is copied! Carefully spell out who pays for every financial detail of a job offer letter and make sure your financial person is copied. Get Business Objects this year. (It is free now.) The cost was ~$1800!! 22 Enrollment Funding Base Year is (the year before the big increase in # of Freshmen) This includes both face to face instruction and DDP for undergrad courses. AAFTE (Annual Average Full Time Equivalent) = Undergraduate Courses ( ) Credit Hours/ 30 based on Official Enrollment Day Enrollment snapshots Each College gets a $ Amount for each AAFTE above the Baseline. Grad DDP Courses get a higher amount but have the same Base Year. 23 Endowments, Gift Accounts, The Foundation It takes $25,000 or more to establish an endowment. (Program 17D) You don t spend out of your endowment account, in fact it is not in balances. Quarterly distributions are made from an endowment to a spendable account based on a 30 month running average of endowment earnings. A portion of the earnings is retained by The Foundation who manages the endowment investments and coordinates activities. The remainder is put back into the endowment. Underwater Endowments when Market Value is less than Principal value, some gift agreements stop quarterly distributions to spendable accounts. 24 8

9 Quarterly Distributions Spendable Account 25 How is my Department Performing? For Access to all of these, contact Fran Hermanson, Institutional Research, Oklahoma Salary Survey Peer Institutions Academic Profiles Data And Much Much More!!!!

10 Washington State University compares itself to the 22 research universities below as mandated by the Washington State Legislature. Each institution is a public*, land-grant research university with a veterinary medicine program. Three of these institutions are also Global Challenge State (GCS) peers and 12 are AAU member institutions. Name Location Web IR Web GCS Peer AAU Home IR Home Auburn University Auburn, AL Colorado State University Fort Collins, CO Cornell University Ithaca, NY Iowa State University Ames, IA Home IR Home Kansas State University Manhattan, KS Home IR Home Louisiana State University Baton Rouge, LA Michigan State University East Lansing, MI Mississippi State University Mississippi State, Home IR Home MS Home IR Home North Carolina State University Raleigh, NC Ohio State University Columbus, OH Home IR Home Oklahoma State University Stillwater, OK Purdue University West Lafayette, IN Texas A&M University College Station, TX University of California, Davis, CA Davis Yes University of Florida Gainesville, FL Home IR Home University of Georgia Athens, GA University of Illinois at Urbana-Champaign Urbana, IL University of Minnesota, Twin Cities Minneapolis, MN University of Missouri - Columbia Columbia, MO Home IR Home University of Tennessee Knoxville, TN University of Wisconsin - Madison Madison, WI Virginia Tech Blacksburg, VA *Cornell University no longer reports data under its Statutory Colleges as a public institution and so is 28 often excluded from peer comparisons Profile for Mystery Department WSU - Pullman For more information see Profile Notes Student Section Undergraduate Students in Certified Majors (all degree programs, majors 1 through 5) Class Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Freshman Sophomore Junior Senior Other UG Undergraduate Students Advised in the Department (not in certified majors) Class Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Freshman Sophomore Junior Senior New Undergraduate Students with Interest in the Department (not in certified majors) Type Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 New Freshman New Transfer Grad Student Headcount by Level of Study and Percent on Assistantship (all degree programs, majors 1 through 5) Class Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Masters PhD % on Assistantsh ip - Masters 60.0% 60.0% 50.0% 80.0% N/A N/A % on Assistantsh ip - PhD 96.2% 93.8% 91.9% 91.0% N/A N/A Assistantships could be in any department, and at any time during the academic year. 29 Undergraduate Student Headcount by Sex (all degree programs, majors 1 through 5) Sex Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Female Male % Female 43.9% 38.1% 36.4% 42.9% 41.0% 40.2% Graduate Student Headcount by Sex (all degree programs, majors 1 through 5) Sex Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Female Male % Female 46.3% 46.4% 38.2% 37.1% 34.8% 36.6% Undergraduate Student Headcount by Full/Part-time (all degree programs, majors 1 through 5) Full/Parttime Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Full-time Part-time % Full-time 95.1% 95.2% 93.9% 91.4% 94.9% 93.5% Graduate Student Headcount by Full/Part-time (all degree programs, majors 1 through 5) Full/Parttime Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Full-time Part-time % Full-time 96.3% 97.1% 94.7% 96.6% 97.8% 96.5% Degrees Awarded Degree Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Bachelors Masters PhDs Degree for Bachelors Degrees (3-year average) Entering Status FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Freshman Headcount Degree Transfer Headcount Degree

11 Degree for Graduate Degrees (full-time, all the time 3-year average) Masters PhDs Degree Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Headcount Degree Headcount Degree Degree for Graduate Degrees (part-time, anytime 3-year average) Masters PhDs Degree Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Headcount Degree Headcount..... Degree..... Degree for Graduate Degrees (overall full- and part-time 3-year average) Masters PhDs Degree Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Headcount Degree Headcount Degree Instruction Section Annual Average FTE (AAFTE) Course Enrollment, Includes Self-Sustaining Level AY 2007 AY 2008 AY 2009 AY 2010 AY Undergrad Grad Grand Student Credit Hours 14,987 16,330 18,573 19,154 19,379 19, AAFTE Conjoint Course Enrollment by Level AY 2007 AY 2008 AY 2009 AY 2010 AY 2011 Undergradu ate Graduate % Graduate. 80.4%.... State-Funded Annual Average FTE (AAFTE) and SCH Course Enrollment On/Off Campus AY 2007 AY 2008 AY 2009 AY 2010 AY 2011 On-campus Undergradu ate On-campus Graduate Student Credit Hours 14,942 16,236 18,445 19,043 19,283 18,924 Student Experience Measure: Undergraduate Course Annual Average FTE (AAFTE) Group-taught Courses in the Department and Who Taught Them (AAFTE distribution by rank) Rank AY 2007 AY 2008 AY 2009 AY 2010 AY 2011 Equivalent Associate Equivalent Assistant Equivalent Clinical Faculty Instructor/L ecturer Other Faculty/Staf f Graduate Assistant Undergradu ate Assistant % in Ranks 61.0% 58.8% 52.9% 58.6% 51.0% 54.2% 32 Student Experience Measure: Graduate Course Annual Average FTE (AAFTE) Group-taught Courses in the Department and Who Taught Them (AAFTE distribution by rank) Rank AY 2007 AY 2008 AY 2009 AY 2010 AY 2011 Equivalent Associate Equivalent Assistant Equivalent Clinical Faculty Instructor/L ecturer Other Faculty/Staf f Graduate Assistant Non-paid appt/no Teacher Info % in Ranks 93.6% 96.0% 95.5% 90.4% 89.5% 91.6% Faculty Instruction Measure: Undergraduate Course Annual Average FTE (AAFTE) Faculty Appointed to the Department and Group Taught AAFTE Distribution by Rank Rank AY 2007 AY 2008 AY 2009 AY 2010 AY Associate Assistant Clinical Inst Faculty Other Inst Faculty T/TT Non- Inst Faculty Non- Instructional Faculty Graduate Assistant Staff % in Ranks 60.8% 59.2% 54.5% 59.6% 51.7% 55.3% 33 11

12 Faculty Instruction Measure: Graduate Course Annual Average FTE (AAFTE) Faculty Appointed to the Department and Group Taught AAFTE Distribution by Rank Rank AY 2007 AY 2008 AY 2009 AY 2010 AY Associate Assistant Clinical Inst Faculty Other Inst Faculty T/TT Non- Inst Faculty Non- Instructional Faculty Graduate Assistant Staff % in Ranks 92.6% 94.9% 95.3% 90.7% 90.3% 92.0% Faculty Instruction Measure: Graduate Students Enrolled in 700/702/800 Faculty Appointed to the Department and Number of Students Advised Weighted by Teaching Effort Rank Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall Associate Assistant Clinical Inst Faculty Other Inst Faculty T/TT Non- Inst Faculty Non- Instructional Faculty Graduate Assistant Staff % in Ranks 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 34 Employee Section Faculty and Staff Headcount Appt Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall Associate Assistant T/TT Inst Faculty Clinical Inst Faculty Other Inst Faculty Non-T/TT Inst Faculty T/TT Non- Inst Faculty T/TT Non- Inst Faculty Non- Instructional Faculty Non-T/TT Non-Inst Faculty Faculty Staff T/TT Faculty: Percent Female and Percent Tenured Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 N % Female 15.4% 14.8% 19.2% 18.5% 19.2%. % Tenured 76.9% 74.1% 73.1% 77.8% 84.6%. Faculty FTE by Source Faculty FTE Source Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 T/TT Non-Inst Titles Research T/TT Non- Inst Titles T/TT Inst Titles Instructional T/TT Inst Titles Tot Other Faculty Instructional Research Other Other Faculty Grand

13 Award by credit uses OGRD assignment of units - see notes. Institutional Research, 15APR2012 Title Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Postdoctora l Research Associate N/A Category Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Project Asst Teaching Asst Research Asst Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Undergradu ate Assistant FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Proposal Count Proposal Amount $22,429 $51,331 $29,413 $27,380 $51,297 $36,030 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Award Count Award Amount $3,909 $6,035 $6,478 $5,151 $6,677 $6,102 Award by Credit $4,000 $6,035 $6,387 $5,412 $6,576 $6,125 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Federal $4,068 $3,838 $4,134 $4,367 $5,761 $4,754 State $228 $189 $113 $281 $201 $198 Industry $114 $55 $94 $72 $242 $136 Other G&C $114 $38 $77 $47 $141 $88 G&C $4,524 $4,120 $4,418 $4,766 $6,344 $5,176 includes F&A Generated $1,048 $1,080 $1,048 $1,158 $1,362 $1,189 10/10/2016 Postdoc FTE Graduate Assistant FTE Appointed in the Department Undergraduate Assistant FTE Research Section (dollars in thousands) Grant and Contract Proposals (dollars in thousands) Grant and Contract Awards (dollars in thousands) Grant and Contract Expenditures (in thousands) Enjoy the Ride!!! 39 13

14 Remember: Keep your sense of humor If you wait long enough, all of those people above you will disappear Covet PBL funds! 40 This has been a WSU Training Videoconference If you wish to have your attendance documented in your training history, please notify Human Resource Services within 24 hours of today's date: hrstraining@wsu.edu 14

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