On an annual basis, the University is required to present a Five Year Financial Plan to the Board of Trustees. The development of this Plan and the ensuing annual allocation budgets for the KSAS departments starts in December and is completed in May. The initial part of the process involves development of Central Administration guidelines. With this information in hand, the Division works with projected revenues to develop appropriations for projected expenditures. After Central Administration's approval of this plan, the budget appropriations for the departments begin. Below are three stages of budget development.
Tuition rates are recommended by the Dean and are presented to the Board of Trustees for approval. The Board of Trustees determines the endowment payout. General Accounting in the Controller's Office produces a detailed listing of the anticipated income for each of the division's endowments.
The KSAS Office of Finance and Administration presents the Cost Analysis Office in the Controller's Office with a Five Year Projection of the Divisions Base (Modified Total Direct Cost) as well as a projection of the indirect costs by function. Cost Analysis, using this information, calculates the divisions F&A (IDC) returns.
Human Resources Shared Services determines the annual staff salary guidelines. Central Administration also presents the division with the fringe benefit rate, Maryland State Aid, and the University tax.
KSAS and Other Divisions
The Budget Process in the Dean's Office begins with a detailed projection of the current year's budget as of the calendar year end. Using this projection, as well as allocations of revenue or expense from other divisions, (i.e. Homewood Student Affairs), guidelines from Central Administration and assumptions and guidelines from the KSAS Dean's Office, a budget is developed for the next year. Again using these sources of information, the four following years are projected. The largest components of the revenue are tuition, indirect cost from research, and gifts and endowments. The largest components of expense are instruction and research (i.e. faculty salaries, operating budgets), graduate student aid, operation and maintenance of plant and Interdivisional expense from Homewood Student Affairs (i.e. undergraduate student aid).
The budget, relevant assumptions and academic priorities are presented and discussed with the Provost, Sr. Vice President and the KSAS Deans. Any necessary changes are made before final approval.
The Deans, in conjunction with the Office of Finance and Administration, determine the operating budget allocations. The budgets are sent to the department chair and department administrator. A meeting of the relevant deans and the Office of Finance and Administration is scheduled with the chair and department administrator to discuss the operating budget and any further departmental requests for funding. The Deans make a final decision.
Guidelines on faculty salaries are sent to the department chairs from the dean. The chairs are asked to recommend salaries for each of their faculty members using the guidelines. The chairs are also asked to include explanations and methodology. The department chair meets with the dean to discuss the recommendations. The dean then makes the final decision on faculty and chair’s salaries. The dean's office forwards the May appointment letters to the chair, detailing the new academic base salary, FTE, and any adjustments (i.e. leave of absence) in time for the July 15 payroll cut-off.
Centers and Programs
Each of the centers and large special programs directors meet with the Vice Dean for Graduate Education and Centers and Programs to discuss their current year's activities and their plans for the following year. A projected budget is presented with necessary explanations. The vice dean sets the final budget for the year.
Breakdown of the Budget into GL Codes
Once the budgets are determined, the department administrators are asked to give the Office of Finance and Administration a detailed breakdown of the budgets into source codes. More than one operating account can be set up for better management in the department. The budgets are electronically sent to the Budget Office for final approval.
If additions are requested and approved during the Fiscal Year, the Budget is appropriated for the new amount.
Describe what kind of training is available for the budget administrator to learn the skills needed to do their part of the budget development function.
What courses, fast facts, or online training would be helpful?
- Worksheet for development of Department Block Budget (MS Excel format) (note to Business Office: this is the same worksheet that was on old KASPER. It is outdated (FY03) and needs updating. Once updated, though, it is still a useful tool for administrators)
- Salary Planning Worksheet Template (note to Business Office: the one on KASPER is TOO OUTDATED to be useful, will need to be revised)