Operating Budget Instructions
Base budgets will be rolled to the 2012 operating budget on June 22nd, 2011 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 2012.
Educational & General (Ledger 1),
Auxiliary Enterprises (Ledgers 3 and 4),
and Discretionary (Ledger 6) Budgets
Purpose & General Guidance
These instructions provide the information necessary for you to complete the documentation phase of the 2011-2012 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.
The Budget Office has loaded the resources associated with the decisions made by the President. Each resource decision listed in the Vice Presidential Area 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 the BUDGET WORKSHEET REPORT (online Banner FBIBUDG), and listed on the DECISION SUPPORT SHEETS (for the Vice Presidents' Offices). 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.
Base Budget Distribution Realignment: Often the base budget is out of alignment with the routine, daily operating expenses. You are encouraged to realign your base budget to align it with your actual experience and to best meet your needs. Redistributions you would like to make to your base budget will be accomplished by reviewing your BUDGET WORKSHEET REPORT(online Banner FBIBUDG).By using the Base Budget Distribution Worksheet you can realign your budgeted subaccount data. For example, you may need to add $500 to a subaccount 6001 because your spending patterns show that you use this subaccount every year. This would be entered as a positive $500. Correspondingly, a negative $500 would have to be entered in the subaccount line from which you are reallocating. Each Budget unit's base adjustments must net to zero. Please note that Academic departments must not reallocate from the 4027 Adjunct Faculty line. Likewise, this base realignment opportunity is focused on the operational expense portion of the budget; position actions require standard HR/Budget Office interaction. The completed Budget Worksheet Reports are due in the Budget Office by Friday, June 10th, 2011 to ensure changes to your base by 1 July
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 a 5% salary increase for VRS employees which will be offset by the corresponding 5% required contribution to VRS for pension costs.
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 2011-2012 will be 36.46%. This rate consists of 14.06% 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, 1.02% for Group Insurance , and 13.73% 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, 2011 - June 9, 2012|
|4002/4006/4011||Classified||June 10, 2011 - June 9, 2012|
|4005||Faculty-12Month||June 10, 2011 - June 9, 2012|
|4005||Faculty Teaching 10 Month||June 16, 2011 - June 15, 2012|
|4021||Wages Hourly||June 10, 2011 - June 9, 2012|
|4022||Graduate Teaching Assts.||June 10, 2011 - June 9, 2012|
|4023||Graduate Research Assts.||June 10, 2011 - June 9, 2012|
|4025||Regular Students||June 16, 2011 - June 15, 2012|
|4026||Summer Students||June 16, 2011 - June 15, 2012|
|4028||Workstudy Students||June 16, 2011 - June 15, 2012|
|4027||Part-Time Faculty||June 16, 2011 - June 15, 2012|
|4031||Special Pay for Acad Svc||June 16, 2011 - June 15, 2012|
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.
One-Time Fund Allocations: If you received any one-time (non-E&G) funding allocations in your budget, a copy of the;budget adjustment form has been included in your materials. Please review, and realign as necessary on regular budget adjustment form noting the fiscal year 2012. Please sign, and return the form(s) 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) the amount of shortage or overage in the pool will provide a starting point for the realignment of succeeding years base budgets. 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. They will be revised in Banner operating as quarterly earnings are realized.
- Auxiliary Indirect Cost: The auxiliary indirect cost rate for FY 2011-2012 is based on 12.19% 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 2011-2012 are for planning purposes and do not constitute a commitment of resources.
Budget Distribution Worksheet
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, Human Resources, 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.
The Budget Preparation Worksheet
Insight Budget Software Reports
Option 1: Download your base budget from the Insight Budget Tracking software (the CBB by Budget Code by Revenue/Expenditure Category by Subaccounts Report) into Excel. You will have your Base Budget by line item/subaccount. You can then add two columns in the spreadsheet: one for adjustments, and one for the resulting base. Remember the base adjustments must net to zero --- you can add $500 to one line as long as you subtract from another line. Note more Insight software training is being scheduled.
Option 2: Review your base budget via Banner FBIBUDG (To access this Banner Report see the upper left hand corner of the banner entry screen GO TO and type in "FBIBUDG." Per the screen shot below in the Budget ID row type in "11BUD". Tab down to the Organization and type in your budget unit number. Tab to Selection Criteria Key 1 and use the drop down menu to select Account, then "Control Page Down and you will have the Base Budget by subaccount over multiple banner pages. The first column entitled 12Base refers to the current Base budget which will "roll" into FY2012 Operating (OPAL) on July 1, 2011.
For Option 2 you can note the adjustments you desire utilizing one of the attached Budget Distribution templates (again recognizing that the adjustments must net to zero).
Base Budget Distribution Worksheet
Human Resources, Compensation/Hourly Rates
Human Resources, Compensation/Hourly Rates Note: See the Human Resources website for official compensation rates at:
Student Employment Wage, Scale by Group ClassificationSTUDENT EMPLOYMENT WAGE SCALE BY GROUP CLASSIFICATION 2011-2012 STUDENT WAGE SCALE
FEDERAL MINIMUM WAGE INCREASE
Prior legislation increasing the minimum wage for the first time since 1997 has been implemented in three installments beginning with an increase to $5.85 effective July 16, 2007 and $6.55 effective July 16,2008 and $7.25 effective July 16, 2009. Only student pay rates are impacted by this change.
The student wage scale has been revised to reflect the change. Effective July 16, 2009 the minimum starting pay for students in group I will be increased to $7.25. Students employed in Group I with pay rates of less than $6.55 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
|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
|Pay Range||$7.25 - $7.90/hour||$8.15 - $11.15/hour||$11.40 - $21.40/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|
Employee Benefits Schedule
|SALARIES, O. T.||4004||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|
|SPECIAL PAY FOR
|Wages GA (Teaching)"S-5"||4122|
|Wages GA (NonTeaching)"S-5"||4123|
2011-2012 Regraded Rate is 22.73% when there is no Health Insurance.