FY 2008/09 Budget Instructions
Attachment B: Budget Guidelines

BPS DATA ELEMENTS

Please note the following:

• BPS allows you to simulate different budget scenarios with 3 distinct budget versions (A, B, & C). Version A is considered the official version and will be routed accordingly for budget review/approval in the workflow process. Versions B&C are working copies; you can simulate different scenarios of your budget as needed. Copy functions facilitate copying data between the different versions. Please be careful when running these functions, as the copy functions will overwrite any existing data that is contained in the version that is being copied to.
  
  
• Actuals will be updated in BPS on a monthly basis during the budget development process. Fall and spring year-end projections will be updated around November 15 th and February 15 th , respectively.
  
  
• The payroll data loaded into BPS will be updated through the month of November. Beginning in December, you will need to manually update for any changes to payroll (e.g. rate increases, new hires, terminations, etc.) that occur during the budget development process. The position management number will be used to link the position budgets in BPS to the R/3 July salary setting tool.
  
  
• New positions that were created last year in BPS were assigned a BPS-only position number that began with the number 9. Valid position numbers begin with the number 5, and are assigned by SAP when the position is created in HR. There is no link between the 9xx BPS-only position number and the 5xx position number that is created in SAP. However, each management center attempted to synch up the new 9xx BPS-only positions with the new 5xx positions that have been created since last year's budget development cycle. In those instances where the new position could be identified, the position budget from the 9xx BPS-only position was loaded to the current year budget for the new 5xx position. If establishing the link was not possible, there will be no current year position budget on your newly created 5xx position numbers. If a position was created last year in BPS and has not yet been created in SAP, you will have to re-create that position in BPS again this year if the position is still desired.
  
  
• The position budgets for biweekly employees will be calculated in BPS by multiplying the Current Hourly Rate x FTE % x 2,080.
  
  
• Fringes are set globally in BPS and calculate automatically for G/L accounts 610000, 610100, and 619900. The fringe benefit rates for FY 08/09 are as follows:

	Applied To All Funds 6100	Applied To Non-Govt. 6101	Total
Faculty/Staff	21.0	1.9	22.9
Biweekly	16.5	0.9	17.4
House Staff	14.1	-	14.1
Graduate	5.8	-	5.8
Students	7.7	-	7.7

The attrition provision of 2.5%, and associated fringes, calculates automatically when your biweekly payroll G/L accounts total $80,000 or greater. For information on how to restore attrition, please contact your management center .

• Distributed and general and administrative expenses (G/L accounts 900100-901200) have not been pre-loaded for FY 08/09. For budget development purposes, departments should assume a 3.0% increase. Larger departments may request the forecast assumptions for upload into BPS in mid-January.
  
  
• Projected FY 08/09 endowment income distributions have been pre-loaded into the recipient funds on G/L account 310100 during the week of November 6th. These projections are based on first quarter data provided by Endowment/Investment Accounting and reflect the projected income (based on current units) to be distributed on June 30, 2008 for spend in FY 09/10.
  
  
• Job code ranges are not loaded in BPS. Please reference the following HR website for job code pay ranges.

 

BUDGET SPECIFICS

Please note the following:

1. Service Center Recharge Rates
   Federal reimbursement regulations require us to follow very specific guidelines for administering Service Centers and related pricing/charge-back mechanisms. For more information, please refer to Attachment C.
   
   
2. All Funds
   As in the past, departments are required to budget operating activity across all funds, which include: current unrestricted (1xx), restricted (3xx), allocated (4xx), quasi-endowment (66X), and plant funds used for operating activities (i.e. capital renewal (74x), indebtedness (769x) funds). Other plant fund activity, e.g. construction projects (72X) and deferred maintenance (75X) should be budgeted separately as part of the capital budgeting process. Departments are not required to build the budgets for their non-current unrestricted activity on each individual fund, rather an aggregate approach is allowed. However, please remember the board reports are consolidated at the G/L account summary level. The all funds budgets should be built with this in mind, in order to ensure the consolidated financial reports are as accurate as possible.
   
   For your convenience, a set of all funds board reports are included in the summary reports section in BPS. These reports are in the same format as the financial reports distributed to the Board of Trustees. These reports should be utilized to help consolidate and analyze your budgets in the same format as will be done at your Management Center budget offices.
   
   
3. Appropriations And Transfers
   Please remember to consider all sides of your appropriations and transfers as you prepare your operating budget. Offsets should be entered on the Spreads and Appropriation Offsets tab in BPS. As we continue to analyze and report on an all funds budget for the institution, it's critical that we capture both sides of all intra-company transfers so that we can eliminate the impact of any such transfers on a consolidated basis for the University.
   
   
4. Spread Codes
   Budget spread codes are included in BPS and are based on current year spreads. The use of the ACT and 3YR spread codes in BPS will result in a spread of 1/12 th in BPS, since the current fiscal year is still in progress. The budget spreads will be recalibrated once the fiscal year ends and the corresponding budgets will be re-loaded into SAP at that time.
   
   
5. Multi Year Plans
   BPS has been set up to allow all departments to complete up to 10 years of out year planning. Although multi-year planning is not an institutional requirement, it is required for some departments. (Please refer to your management center instructions for specific information.)
   
   
6. Inflation Assumptions
   The latest CPI report estimates overall inflation at 2.8% for the twelve months ended September 2007.
   
   
7. Salary Information
   
   Please note the following:
   
   • Proper Use of G/L Accounts in Budgeting Employee Effort
     Compliance with Federal OMB Circular A-21 requires precise assignment of G/L accounts in order to properly define each employee's effort. Please ensure that employee salary and wages are budgeted on the appropriate G/L account.
     
     
   • Salary Pool For University Employees
     The recommended salary pool for both exempt and non-exempt (non-bargaining unit) employees is 3.8%. (For bargaining unit employees, please refer to the current bargaining unit agreements.) The recommended salary pool applies to both the University and the School of Medicine . Careful attention should be given to the allocation of resources between the exempt and non-exempt salary increases. Departments are asked to ensure that the overall percentage increase between the exempt and non-exempt employees remain in-line with one another.
     
     Although the distribution of the wage pool may vary by department or School, it is expected to cover salary increases related to Pay & Performance and any necessary upward movement within the salary ranges (see below). Departments should follow specific instructions from their management center budget offices for salary budgeting.
     
     
   • Salary Ranges
     We anticipate a 2.5% increase in the pay ranges for FY 08/09. Please keep this range movement in mind as you budget for any employees that are currently at the minimum.
     
     
   • Undergraduate Students
     Payroll for undergraduate students (and any associated fringe benefits, if applicable) should be budgeted on the Student tab in BPS. Fringe benefits for students should be budgeted on G/L account 610500. Fringe benefits (FICA at 7.7%) should only be budgeted on Duke Students working during the summer term who are not registered for classes. For non-Duke students (G/L account 609700), fringe benefits should be budgeted whether they are in class elsewhere or not.
     
     
   • Graduate Students
     As in the current year, fringe benefits will be calculated for salaries budgeted on the G/L accounts used to pay RA's and TA's – 601200 and 601400, respectively. Any amounts budgeted on these g/l accounts will be charged a 5.8% fringe benefit rate. The fringes will be automatically calculated in BPS and posted to G/L account 610700 for all effected cost objects.
     
     
   • Salary Setting
     Since position budgets are loaded into the R/3 July salary setting tool based on the position management number, it's important that you carefully consider this when budgeting for new positions in BPS. If you are creating a salary line item for a new position and you know the position management number, please enter the position management number into the 'Notes' field on the salary line item.