UNIVERSITYOFTEXASATDALLAS
DIVISIONOFBUDGETANDFINANCE
OFFICEOFVICEPRESIDENTFORBUDGETANDFINANCE
February21,2014
TO:
VicePresidents,AssociateandAssistantVicePresidents,AssociateandAssistant
Provosts,Deans,Directors,andDepartmentHeads
FROM:
SUBJECT:
TerryPankratz
VicePresidentforBudgetandFinance
PreparationofUniversityofTexasatDallasOperatingBudgetforFY2015
TheUniversityofTexasatDallasoperatingbudgetforFY2015isduetotheSystemonMay12thto
facilitateBoardofRegentsapprovalinAugust,aswellascompletionofthebi‐annualLegislative
AppropriationRequest(LAR).Inmeetingthisdeadline,theprocessandguidelinesadaptedfromtheUT
Systembudgetinstructionsmustbefollowed.
BUDGETPROCESS
Budget preparation will once againbe intwo phases. As inrecentyears,Phase I will represent
thelumpsumformatbudgetanddepartmentalvalidation. Individualsalaryrecommendationswillnotbe
addressedinPhaseI. TheprimarycategoriesareFacultySalaries,Non‐FacultySalaries,HourlyWages,
FringeBenefits,CapitalEquipment,Travel,andMaintenance&OtherExpenses(M&O),andUnallocated
Salaries.PleaseseeattachedcalendarforthecompletetimelinefortheFY2015developmentprocess.
Phase IbeginsinMarchwiththedistributionofthebudgetworkbookstotheUniversitycommunity.
DepartmentalusertrainingwillalsobeprovidedinFebruary.Theworkbookswillbeopentocampus
usersonoraboutMonday,March3,2014,andwillbeutilizedtoprepareexpensebudgetsand
prepareincomeestimatesforself‐supportingcostcenters.All entries aretobesubmittedtodivisional
VicePresidentsby March17,2014. Phase II of t h e F Y 2 0 1 5 b u d g e t d e v e l o p m e n t will begin Monday, March31,2014.PhaseII
willbethedistributionofmeritprogram.Detailedmeritinstructionswillbeissuedpriortoopening
thePhaseIIbudgetmodule.Approved salary recommendationsshouldbeenteredintothemerit
templates,withallrequiredcompletedformstobereturnedbyFriday,April14,2014.PleasenotethatUT
Dallasmeritprogramissubjecttothecompletionofannualperformanceevaluations.Pleasereferto
http://www.utdallas.edu/hrm/er/pm/appraisals.php5.
Alldepartmentsmustensurebudgetedexpendituresdonotexceedestimatedfundsavailable.Core
fundallocationsandexpendituresmustbebalancedbeforesubmittalofbudgettemplates.Innon‐core
andself‐supportingactivities,totalfundsbudgetedshallnotexceedrealisticdepartmentalestimatesof
incomeand balances brought forward. Caution should be used in budgeting balances brought
forward asthesebudgetsmustbesustainableinfutureyears.
AvailablefundbalancesendingAugust31,2014willbeautomaticallycarriedforwardtoFY15.
ForCorecostcenters,theseamountsareinadditiontoallocationsandshouldnotbere‐budgeted.
UNIVERSITYOFTEXASATDALLAS
DIVISIONOFBUDGETANDFINANCE
OFFICEOFVICEPRESIDENTFORBUDGETANDFINANCE
GUIDELINES
Thefollowingguidelinesmustbefollowedtoensurethatbudgetedexpendituresremainwithin
fundsavailable:
RevenueCostCenters
Budgetedrevenueestimatesareexpectedtoberealistic.Ifthereducedrevenueestimatewould
resultinadeficitbudgetedfundbalance,theunitmustmakenecessaryreductionsinoperatingcostsso
thattheoperationsarebudgetedwithinavailablefunding.
IftheFY14budgetedrevenueestimateisunderstated,theunitmayincreasethebudgeted
revenueforFY15.Thereasonforincreasedrevenuesmustbedocumented.Ifthisincreaseresultsina
budgetedfundsurplus,theincreasedrevenuemaybeusedtoincreasetherelatedoperatingbudgets.An
explanationmustbesubmittedforanyrevenueprojectionthatincreasesby25%ormorefrom
theFY14RevisedRevenueBudget.
Costcenterswhichhaveazerofundbalanceandzeroactivityprojectedforthefollowingyearwill
bedeactivated.
ServiceCenterCostCenters
AllServiceCentercostcentersmusthaveanapprovedannualratestudyonfile.Allratestudies
areduetoAccountingOperationsbyMarch3,2014.Non‐Compliancewithratestudyrequirementswill
resultinlossofbudgetauthority.
Salaries
Aspartofthebudgetprocess,TheOfficeofHumanResourceswillreviewallstaffsalaryincrease
submissionspriortofinalapproval.TheOfficeofHumanResourcesFY’15BudgetSalaryAction
GuidelineswillbereleasedwiththeopeningofthePhaseIbudgetcycle.Theseguidelineswillprovide
detailedinstructionsfornewpositions,replacementsforexistingpositions,reclassificationsand
requirementsofthemeritprogram.
Salariesforbudgetedpositionswhichhavebeenapprovedandareintendedtobefilledforthe
fiscalyearbeingbudgetedshouldbelistedonthedepartment’sbudgetsubmission.Salariesforallactive
employeesmustbebudgetedduringthebudgetprocesswiththeexceptionslistedbelow:
 Employeeswhohavesubmittedwrittennotificationoftheirintenttoresignpriortothe
startofthefiscalyearbeingbudgeted:thesepositionsshouldbebudgetedasvacant.
 LecturersI,II,&III,GraduateStudents,ResearchAssistants,TeachingAssistants,non‐
budgetedhourlyworkers,includingstudentsandtemporarystaff:salariesfortheseemployeeswill
bebudgetedinlumpsums.AppointmentsfortheseemployeegroupswillbecompletedinAugust
2014.
NewPosition:Faculty,Administrative&ProfessionalandClassified
NewpositionsmustbeapprovedbytheappropriateVicePresidentorExecutiveVicePresident
andProvost.Exception:CallierCenterisexemptfromthisrequirement.Movementofpositionsfrom
otherfundingsourcestocostcentersfundedbybaselinebudgetsisconsideredanincreaseinFTE,and
thisprovisionapplies.
UNIVERSITYOFTEXASATDALLAS
DIVISIONOFBUDGETANDFINANCE
OFFICEOFVICEPRESIDENTFORBUDGETANDFINANCE
Newpositionsshouldbeaddedduringtheannualoperatingbudgetdevelopmentprocess.The
salaryofanewAdministrativeandProfessionalpositionoranincreaseforanemployeepromotedtoan
AdministrativeandProfessionalpositionshallbeestablishedinconsultationwiththeAssistantVPfor
HumanResourcesandtheappropriateVicePresident,ExecutiveVicePresidentandProvost,orExecutive
Director.
EmployeeBenefits
Employeebenefitshavebeencentralizedforallcostcentersfundedfromcorebudgetfunds.
PleaseseetheBudgetDevelopmentInstructionsManualforalistofcorefunds.
Self‐SupportingCostCenters‐Forallnon‐corebudgetcostcenters,excludingtheexceptions
listedabove,benefitcostsarebudgetedandpaidfromthecostcenterpayingthesalary.Benefitsare
estimatedat30%ofsalaryforbenefiteligibleemployeesand10%ofsalaryfornon‐benefiteligible
employees.
Other
Allrequestsforincreasesinfundingmustincludewrittenjustification.
LongevityPay
Budgetingforlongevitypaywillbehandledinthefollowingmanner:
Longevity pay for accounts funded from CoreFunds will bebudgetedinaspecialcostcenterto
becentrallyadministered,andnoactionisrequired.
Sufficientamountsshouldbebudgetedtocovertheestimatedfiscalyear’sexpendituresinthe
lumpsumitemLongevityPayineachnon‐coresalarypayingcostcenterinthefollowingfundgroups:
 ServiceDepartmentsandNon‐CoreDesignatedFunds
 AuxiliaryEnterprises(4xxx)
 RestrictedFunds(5xxxand6xxx)
Longevity pay shall be paid to eligible employees at the rate of $20 per month for each two
years of lifetime service credit. Themaximum monthly longevity amountcaps on the 42ndyearof
serviceoramaximumof$420/month.
Wages
Requiredfundingforstudentworkersandothertemporaryemployeeswhoarenon‐exempt
(part‐timeclerk,etc.)shouldbebudgetedasWages.Wageswillbebudgetedasalumpsum.The
followinginformationispresentedtoassistinyourplanning.
 MinimumwageinFY2015is$7.25.
 Overtime:Anticipatedovertimecostsfornon‐exemptpositionsshouldbeincludedinthis
category.Non‐exemptemployeeswhoworkinexcessof40hoursperweekmustbecompensated
at1.5timestheirregularrateofpay,unlesstheextrahoursworkedarebankedascompensatory
time.Exemptemployeesarenoteligibleforovertimeorcompensatorytime.
MaintenanceandOperations
Budgetsshouldbebasedonrealisticestimatesofactualneeds.
UNIVERSITYOFTEXASATDALLAS
DIVISIONOFBUDGETANDFINANCE
OFFICEOFVICEPRESIDENTFORBUDGETANDFINANCE
Travel
TravelexpensesinallcostcentersshouldbebudgetedbasedupontheUTDtravelpolicy.This
policyisavailableathttp://www.utdallas.edu/procurement/departments/travel/.
Nofundsshouldbebudgetedforthereimbursementofpartialperdiemwhentravelingonofficial
businessthatdoesnotrequireovernightstay.
CapitalEquipment
Capitalassetsarerealorpersonalpropertythathaveanestimatedlifeofgreaterthanoneyear.An
assetthathasavalueequaltoorgreaterthanthecapitalizationthresholdmustbecapitalized.Building
purchases,construction,andimprovementscanbecapitalized;however,buildingmaintenanceandrepair
cannotbecapitalized(mustbeexpensed).
RequestsforNewCostCentersorDepartmentNumbers
IfanewFY2015costcenterwillbeneeded,contacttheSystemsAdministrationManagerinthe
OfficeofAccountingandFinancialReportingandcompletetheCostCenterRequestFormat
https://solutions.sciquest.com/apps/Router/Home?tmstmp=1393012927780. RequestfornewdepartmentscanbeforwardedtoKellyLinder([email protected])or
RohanNilekani([email protected])intheOfficeofBudgetandResourcePlanning.
QuestionsandContactInformation
PleasedirectquestionsregardingcompletionofthebudgetdevelopmentworkbookstoBarbara
Manzi,ManagerofBudgetSystemsatext.6344orviaemailat([email protected]).Additional
assistancemaybeobtainedbycontactingDaveGaarder,AssistantDirectorofBudgetandResource
Planningatext.6374or([email protected]);orKimLaird,InterimDirectorofBudgetand
ResourcePlanningatext.4784or([email protected])