To: Deans and Directors
From: Katrina Spencer, Budget Director
Date: April 9, 2014
Subject: FY 2015 Operating Budget Submission
I write to request your assistance with the development and submission of non 2-Ledger budgets for each of the units under your direction. This is not only an important planning tool for you and your department, but a necessary building block as we construct the FY15 University budget.
The Budget Office will send a Budget Submission Form to the specified fiscal officer in each unit by April 15, 2014. This form includes information about the budget with space for your submission for each of your 3-Ledger (Sub Fund Group OPAUX) and/or 4-Ledger (Sub Fund Group OPOTF) KFS accounts.
Unrestricted Non-Sponsored Program Accounts (3-Ledger and 4-Ledger)
All Schools/Colleges/Units with budgets supported exclusively by fees and/or self-generated revenues must submit FY15 spending plans for each account using the provided Budget Submission Form. As part of the workbook we will supply individual forms for these accounts with FY13 end-of-year actuals and FY14 year-to-date actuals to assist you in the budget process. As a reminder, in KFS we budget for revenue and expenses as well as “transfers in” and “transfers out” of individual accounts. This process provides the University with a clearer picture of fiscal plans and expectations for each unit.
Each School/College/Unit’s budget should balance on an annual basis. Please note that any spending plan which relies on the use of a prior year fund balance will be closely scrutinized. In addition, projected increases in the budget during the fiscal year will be reviewed and may or may not be approved. If you anticipate any significant changes in your operations from the prior year, please inform your Budget Office Analyst as changes in any of these factors may significantly impact the FY15 budget. Budget submissions are due by Friday, May 23, 2014.
Collective Bargaining Increases and Fringe Benefits
Per the SEBAC agreement, there will be collective bargaining salary and wage increases in FY15. Information on these increases will be provided on the Budget Submission Form and may also be found on the Budget Office website.
The official memo with the University Programs fringe benefit rates for FY15 will be published as soon as we receive information on the retirement and health insurance components developed by the State of Connecticut Office of the State Comptroller. These rates are typically released at the end of June. The estimated fringe benefit rate table on the Budget Office website simply projects future rate inflation based on past experience. For now, budgets should be submitted using these rates.
Unrestricted University Supported Accounts (2-Ledger)
Please note there is no need to submit a budget for Unrestricted University Supported Accounts. In July, we will roll forward your FY14 base (permanent) budget into FY15. During the year as part of the regular 2-Ledger process, the Budget Office will transfer current budget from central resources for Longevity, Shift, Snow and Ice Differential, Holiday Pay, and Accrued Sick and Vacation Pay. Departments are responsible for funding personal services, fringe benefits, and workers’ compensation costs due to reclassifications, promotions (except for AAUP faculty promotions as a result of the annual Promotion, Tenure, & Reappointment process), upgrades, reevaluations, temporary positions and refills.
As a reminder, unspent and uncommitted budget funds (net of deficits) for Unrestricted University Supported Accounts (2-Ledger) may carry forward from one fiscal year to the next. (Please refer to the Carry Forward Policy.) Budgets for FY14 encumbrances still open at the beginning of the new fiscal year will be made available as current (one time) budget at the beginning of FY15 and are included as part of the carry forward calculation. The carry forward budget is identified and recorded in September after the University’s financial records are closed for the previous fiscal year. This carry forward budget is currently capped at 2.5% of the current budget at fiscal close, including the carry forward budget for encumbrances. Carry forward funds will be made available to the Dean, Unit Head or Executive Level Head, as applicable. The amount carried forward will be net of any deficits, encumbrance carry forward or other budget issues in your unit. Carry forward funds are made available as current (one time), not base (permanent) commitments.
Thank you for your assistance in this matter and for submitting the required forms by the due date of Friday, May 23, 2014. Documents and forms relating to the development of the FY15 Operating (non 2-Ledger) Submission, including Instructions and Inflationary Guidelines, are available on the Budget Office’s website: www.budget.uconn.edu.