To: Deans and Directors
From: Lysa Teal, Budget Director
Date: March 16, 2009
Subject: FY 2010 Operating Budget Spending Plan
We write to request your assistance with the development of the Spending Plans for each of the budgeted units under your direction. Your Spending Plans are one of the building blocks necessary to construct the FY 2010 University budget.
The outlook for FY 2010 will no doubt be challenging. The State of Connecticut is struggling with a loss of revenue in light of the national economic downturn. The University’s budget includes state support in the form of a State Appropriation and fringe benefits. This support is the University’s single largest source of revenue. The Governor’s recommended budget shows a reduction from the University request of $23.9 million in FY 2010. Considering the current economic outlook, there is a possibility this recommendation will be modified. As soon as there is more information available on the state support (which makes up a large part of the University Supported 2 ledger or Permanent Budget), we will get the information out to the university community. We request that you verify the status of your 2 ledger accounts and if necessary move your available funds to make sure your budgets are aligned with expenditures in each account.
At this point in the process, we are requesting information for the current unrestricted non-sponsored program administered accounts in ledgers 3 & 4 (commonly referred to as “self-supporting” accounts).
Current Unrestricted Non-Sponsored Program Accounts in Ledgers 3 & 4
We are soliciting your detailed budget plans for activities supported by fees and/or self-generated revenues. All Schools/Colleges/Units with budgets supported exclusively by fees and/or self-generated revenues (Ledger 3 and 4, other than Research Funds) must submit a FY 2010 spending plan using the Budget Submission Form. Each School/College/Department's operating budget should balance on an annual basis. Any spending plan which relies on a substantial use of prior year fund balance will be subject to review. Supplemental fund transfers from other sources, including the UConn Foundation, must be accomplished prior to making a corresponding budget adjustment to expend transferred funds. These budgets should be submitted to the Budget Office by April 6, 2009. Failure to submit a budget may delay the processing of purchase orders or other expenditure documents.
Fringe Benefits
Since FY 2005, the University developed its own institutional fringe benefit rates. Please note that there are different rates for University Programs and Sponsored Programs. This institutional methodology will continue to be used as we move forward. An official memo with the new University Programs fringe rates for FY 2010 will be published as soon as we receive information on the retirement and health insurance components developed by the Office of the State Comptroller. We have estimated fringe benefit rates on our website.
Current Unrestricted University Supported Ledger 2 Accounts
If you need to reallocate the baseline budgets (also known as University Supported 2 Ledger budgets) established in FY 2009, please do so by using an A-1 Form or contact your Budget Analyst for a template. Your baseline (or permanent) budgets established in FY 2009 will be automatically rolled over into FRS for FY 2010. However, it is strongly recommended that Schools/Colleges/Units carefully review each University Supported account especially as it relates to Personal Services and Fringe Benefits. The Budget Analyst assigned to your area will be available to assist you.
Other Budget Related Activities - Plant Funds/Inventory Office – Equipment Tracking
The University’s equipment inventory records need to accurately reflect the location and status of equipment in all departments at the University. The Plant Funds/Inventory Office assigns and affixes a numbered barcode to all equipment with a value of $1,000 or more. New equipment must be tagged with a barcode once the Inventory Office receives notice of payment. If prior to tagging, the equipment will be removed from Campus or moved from its original location, the Department should contact the Plant Funds/Inventory Office so that the equipment can be tagged prior to its relocation. The six-digit barcode is for quick identification of the asset and is the key to the University’s equipment records. Reviews by internal, state and federal auditors are based on the information associated with these barcodes.
You are required to regularly surplus all inoperable or obsolete equipment through the Central Stores department. If you move equipment but do not dispose of it, you may utilize the Inventory Control Workflow (ICW) tool. The ICW tool can be accessed from our website at www.inventoryplant.uconn.edu and can be used for this as well as many other inventory updates. Properly documenting disposal or movement of your department’s equipment will aid in maintaining accurate inventory records and help ensure successful equipment audits. If you need any assistance, please contact Inventory Office personnel.
For news on new initiatives for Inventory Control, please visit our website.
Documents and forms relating to the development of the FY 2010 Operating Budget Spending Plan are listed below and are available at our website:
Financial reports, specific to your budgeted unit, are available through the Budget DataMart. Contact your Budget Analyst if you need any supporting materials. We encourage you to subscribe to the Budget-L ListServ as we will be using this to provide information regarding budget issues that may affect you. The submission of budget materials back to the Budget Office should be done through the web based application. Thank you for your assistance in this matter and for submitting the required forms by the due date. We look forward to working with you on any outstanding issues.
Updated: 3/16/09