University Budget Office 2007-2008
Operating Budget Instructions

Base budgets will be rolled to the 2008 operating budget on June 21nd, 2007 and subsequent base adjustments and one-times will be added to budgets after July 1st. At the bottom of this webpage are the revised fringe benefit rates for 2008.

Educational & General (Ledger 1),
Auxiliary Enterprises (Ledgers 3 and 4),
and Discretionary (Ledger 6) Budgets

TABLE OF CONTENTS

SECTION I

Purpose and General Guidance

SECTION II

Budget Distribution Worksheet

SECTION III

Understanding the Budget Preparation Worksheet

APPENDICES

Appendix A - Budget Distribution Worksheet
Appendix B - Human Resources, Compensation/Hourly Rates
Appendix C - Student Employment Wage, Scale by Group Classification
Appendix D - Employee Benefits Schedule

SECTION I
PURPOSE AND GENERAL GUIDANCE

These instructions provide the information necessary for you to complete the documentation phase of the 2007-2008 budget process. Your Vice President, Dean or Director will provide the adjustments you need to make to redistribute your final allocation along with supporting financial data. These instructions provide the information necessary for you to document those adjustments.

In an effort to streamline this phase, the Budget Office has loaded the resources associated with the decisions made by the President. Each resource decision listed in the Budget Guidance Memo and on the Resource Summary Table has been documented in your base budget summary (except for position actions requiring Human Resources review). The effect of those decisions are reflected on your BUDGET WORKSHEET REPORT, and listed on the attached DECISION SUPPORT SHEETS. Due to inadequate documentation on certain budget requests, some resources may have been distributed to a central budget. These budgets will always end in the numerals 98, i.e., XXX98. All such budgets must be distributed to valid budget codes during this phase of the process.

Redistributions you would like to make to your base budget will be accomplished by using a BUDGET DISTRIBUTION WORKSHEET. BUDGET PREPARATION WORKSHEETS are provided for information purposes only. They provide the current distribution of resources allocated to you and provide the start point for any changes needed in your base budget distribution. Sections II through IV provide instructions on the use and interpretation of the forms. The Budget Office will enter changes in your budget from the information provided by you on the Budget Distribution Worksheet. The completed Budget Distribution Worksheets are due in the Budget Office by Friday, June 8th, 2007 to ensure changes to your base by 1 July 2007.

General Guidance

Resource Summary Tables: The Resource Summary Table(s) used to start the budget process were updated to include the President's responses to requests. Each Vice President received the resource summary tables to indicate the approved level of funds and positions distributed to University budgets.

Salary and Wage Increases: The General Assembly approved salary increases for employees to go into effect on 25 November 2007. Salary increases are as follows:

Full-time teaching faculty	4.00% increase
Faculty administrators, faculty professionals	4.00% increase
Part-time faculty	4.00%
Special pay for academic services	0.00%
Graduate teaching and research assistants	4.00% increase
Classified staff	4.00%
General wage hourly employees	4.00%

Student Wages: The student employee wage scale complies with the Federal minimum wage requirements. The Student Employment Wage is detailed in the attached Appendix.

Employee Benefit Adjustments: The overall employee benefit rate for full-time positions in FY 2007-2008 will be 36.6%. This rate consists of 13.9% as the average for the Virginia Retirement System or Optional Retirement Plans as well as Retiree Health Credit and Disability Insurance, 7.65% for FICA, 1.13% for Group Insurance , and 13.92% as the average for Health Insurance Plans . The information provided to your Vice President included the employee benefit adjustments. Please note that the Budget Office will record the employee benefits based on your input to the Budget Distribution Worksheet. A copy of the Employee Benefit Rate Schedule is included in the Appendix.

Pay Schedule for all Salary and Wage Positions: To assist you in your budget planning, the following details the pay schedule for salary and wage positions:

4001/4017	Faculty Administrative	June 10, 2007 - June 9, 2008
4002/4006/4011	Classified	June 10, 2007- June 9, 2008
4005	Faculty-Teaching	June 10, 2007 - June 9, 2008
4021	Wage (Hourly)	June 16, 2007 - June 15, 2008
4022	Graduate Teaching Assts.	June 10, 2007 - June 9, 2008
4023	Graduate Research Assts.	June 10, 2007 - June 9, 2008
4025	Regular Students	June 16, 2007 - June 15, 2008
4026	Summer Students	June 16, 2007 - June 15, 2008
4028	Workstudy Students	June 16, 2007 - June 15, 2008
4027	Part-Time Faculty	June 16, 2007 - June 15, 2008
4031	Special Pay for Acad Svc	June 16, 2007 - June 15, 2008

The part-time faculty and special pay for academic services subaccount code will correspond to the full-time pay schedule (6/10 - 6/9) for any full-time employees who are paid in this category for work that has been contracted beyond the scope of their full-time employment contract.

Budget Reallocations: Often the base budget is out of alignment with the routine, daily operating expenses. You are encouraged to reallocate your base budget to align it with your actual experience and to best meet your needs. The Banner Budget Distribution Worksheet is available for this purpose. In addition, the Budget Office has prepared Supplemental Reports comparing by budget unit subaccount: last year's actual expenses, FY2007 Budget, FY2007 year-to-date, FY2007 encumbered, FY2007 YTD/Encumbered, 2008 Base Budget. All proposed adjustments must net to zero within ledger.

Classified Position In-Band Adjustments: A central pool of funds are provided for classified position in band adjustments. the Department of Human Resources will be working with the university departments to address classified compensation issues and identify positions that resulted from changes in employees' job responsibilities due to reorganizations, staff reductions, restructuring of job duties, and internal alignment.

One-Time Fund Allocations: If you received any one-time funding allocations in your budget, a budget adjustment form has been included in your materials. Please review, sign, and return the forms for entry into next years operating budget by the Budget Office.

Operating Budget: Your operating budget will be represented by line item rather than pool account in the nonpersonal services, travel and equipment categories. This will enable you to manage your budget more efficiently, since you will be able to determine clearly the available balances within each expenditure account within your budget. Therefore, it is important that your budget represent accurately the expenses you plan to incur within each of the separate expenditure accounts within the nonpersonal services, travel and equipment categories, and you should take this opportunity to adjust your budget for the upcoming year. Your review of last fiscal year's actual expenditures as well as the current fiscal year experience will help you identify specific accounts requiring adjustment.

As you manage your budget throughout the fiscal year, it should be emphasized that budget adjustments to the nonpersonal services, travel and equipment accounts will be made at the pool level (For example: to move travel funds to equipment--you would increase 7999 and decrease 9899). Adjustments to the personal services and all recovery categories will continue to be made at the line item.

The following instructions apply to Auxiliary Activities only.

• Commonwealth Auxiliary Interest Earnings: The expected yield on fund balances deposited with the State for Commonwealth Auxiliary units have been estimated and included in the revenue section of the Resource Summary Table.
• Auxiliary Indirect Cost: The auxiliary indirect cost rate for FY 2007-2008 is based on 11.62% of the base expense. The Budget Office has made adjustments for indirect costs to subaccount code 5705.
• Five-Year Planning Analysis: The materials forwarded to your Vice President with the budget guidance included a five year planning analysis for each Auxiliary area designated by a Resource Summary Table. The essential details received from you were retained but adjusted for the President's final decisions. You should note the Ending Fund Balance at the bottom of the analysis in relation to the Maximum and Minimum Fund Balance criteria established by SCHEV. Please understand that the information shown for years after 2007-2008 are for planning purposes and do not constitute a commitment of resources.
  

Section II
BUDGET DISTRIBUTION WORKSHEET

General Information:

The worksheet is at Appendix A. Reproduce as many copies as you need. The worksheet is for base budget adjustments only. Please do not include one-time funds. Do not use pool account codes, i.e., 6999, 7999. The base budget will only accept detail subaccount codes, i.e., 6002, 7102. Look at the Budget Preparation Worksheet to find subaccount codes you now use or refer to the FTVACCT screen on Banner for a listing of the University's subaccounts. The Subaccount Code List is also available on this website. If you adjust temporary position wage, please provide the position number and amount of the budget increase/decrease. Specific Requirements:

• Designate your functional area as President's Area, Development, Academic Affairs, Student Affairs, Administration & Finance, Institutional Advancement, Research, or Intercollegiate Athletics. Also include on this line an identification of the requested action, i.e., Resource Summary Table name of budget item, reallocation, etc.
• Include the name and telephone number of the person who will be available to answer questions.
• Identify the organization code (budget unit) to be changed.
• Enter the applicable subaccount codes.
• Enter the amount of the change. Use parentheses to indicate reductions. All adjustments MUST net to zero.
• Enter the change in FTE to two decimal places. Use parentheses to indicate reductions.
• Briefly describe the adjustment.

Section III
THE BUDGET PREPARATION WORKSHEET

Provides the prior year 2006 base budget and the current year 2007 base budget as of 1 July 2006 and the Year 2008 base as of the report date which is noted in the top left hand corner of the report. The Year 2008 base includes all base budget decisions as presented in the President's guidance memorandum and the supporting resource materials that accompanied it. What follows is a description of the contents of the worksheet. ORGANIZATION LEVEL: In the upper left hand corner you will find the five digit alpha/numeric organization code, the six digit fund code, and the title of the budget. PRIOR YEAR 2006: This column contains the 2006 base budget. It shows what the base budget was at the beginning of the 2006 fiscal year. CURRENT YEAR 2007: This column contains the 2007 base budget that was rolled from the Banner system. It shows what the base budget was at the beginning of the 2007 fiscal year. PHASE 1-- 08BASE: This column shows the 2008 base budget that will be rolled into the 2007-2008 fiscal year. It includes all base budget decisions that were made by the President in the budget hearings. It does not include any one-time budget allocations that will be posted directly to the operating budgets on 1 July 2007. All funding for new positions and position upgrades are currently being held in reserve, pending decisions by Human Resources. Once the position actions are approved, the funding will be allocated to the appropriate operating budgets. ACCOUNT NUMBERS AND DESCRIPTIONS: The accounts listed in the left hand column identify the specific revenue, expenditure and transfer accounts with budgeted amounts. Since a line item budget will be used in the 2007-2008 fiscal year, it is important that the amounts in these accounts accurately reflect the budgeted expenditures within each of these line items.

APPENDIX A

Budget Distribution Worksheet PDF Word

APPENDIX B

Human Resources, Compensation/Hourly Rates Note: See the Human Resources website for official compensation rates at: http://www.odu.edu/af/humanresources/classcomp/

APPENDIX C

STUDENT EMPLOYMENT WAGE SCALE BY GROUP CLASSIFICATION

2007-2008 STUDENT WAGE SCALE

FEDERAL MINIMUM WAGE INCREASE

On May 25, President Bush signed legislation increasing the minimum wage for the first time since 1997. The increase will be implemented in three installments beginning with an increase to $5.85 effective July 16, 2007. Only student pay rates are impacted by this change.

The student wage scale has been revised to reflect the change. Effective July 16, 2007 the minimum starting pay for students in group I will be increased to $5.85. Students employed in Group I with pay rates of less than $5.85 per hour will receive an hourly pay increase effective July 16. A central allocation to fund the increase will be made.

This wage scale is a guideline to help you determine the hourly pay rate to assign to your student hourly and Federal Work-Study positions. When you select a pay grade, keep in mind that you may adjust wages based on student seniority and increased responsibility. Managers have the discretion to determine the starting pay rate, and to increase the rate of pay for students who remain employed in the unit on an on-going basis to acknowledge the increased skill, reliability and contribution to the work unit.

GUIDELINES FOR CONSIDERATION IN DETERMINING STUDENT RATE OF PAY

	GROUP I	GROUP II	GROUP III
Starting Skill Level	Minimal skills	Moderate skills	Advanced skills
Typical educational level might be:	First year students	2nd-3rd year students Students with 12-15 credits in the field of employment or some work experience.	Seniors and graduate students, students with prior work experience students with certification or specialized training.
Minimum start pay	$5.85/hour	$7.45/hour	$10.70/hour
Pay Range	$5.85 - $6.50/hour	$7.45 - $10.45/hour	$10.70 - $20.70/hour
Typical jobs	Grounds work, filing, photocopying, answering phones, assisting with mail, athletic room monitor, computer lab worker, mailroom assistant, food services, cashier, ticket taker, usher, student escort, receptionist.	Secretary, data entry, computer technician, assistant, recreation leader, life guard, aerobics instructor, teacher's aide, database or spreadsheet manager, computer lab worker, peer advisor, lab mechanic assistant, information desk worker, test grader, audio visual tech, research assistant, production assistant, water safety instructor.	Graphic artist, photographer, LAN administrator trainee, experienced tutor, audio visual specialist, public relations assistant, training specialist, LPN, dental technician, programmer telecommunications specialist, athletic professional, senior research specialist, computer engineer, translator, interpreter

APPENDIX D

EMPLOYEE BENEFITS SCHEDULE		4901 RET +	4902 4903 FICA	4904 INS	4905 HOSP	4999 TOTAL
	2007-08	13.92	7.65	1.13	13.92	36.6
	2006-07	13.48	7.65	1.13	13.87	36.13
	2005-06	12.48	7.65	0.00	13.16	33.29
	2004-05	12.93	7.65	0.00	12.17	32.75
	2003-04	12.53	7.65	0.00	10.92	31.1
	2002-03	9.97	7.65	0.00	10.49	28.11
	2001-02	12.77	7.65	0.80	8.63	29.85
	2000-01	12.67	7.65	0.80	8.19	29.31
	1999-00	12.18	7.65	0.00	8.01	27.84
SALARIES, ADMIN	4001/4017	X	X	X	X	X
SALARIES, CLASS	4002/4006/4011	X	X	X	X	X
SALARIES, OTHER	4003	X	X	X	X	X
SALARIES, O. T.	4004		X
SALARIES, T&R	4005	X	X	X	X	X
WAGES, GENERAL	4021		X
WAGES, GRAD ASST TEACH	4022
WAGES, GRAD ASST NON TEACH	4023
WAGES, O. T.	4024		X
WAGES, STUDENT WO/FICA	4025
WAGES, STUDENT W/FICA	4026		X
WAGES, T&R	4027		X
WAGES, WORKSTUDY	4028
SPECIAL PAY FOR ACAD SVCS	4031		X

2007-2008 Rate is 22.68% when there is no Health Insurance.