EXPENSE BUDGET INFORMATION
Instructions for the Preparation of the 2015-16
Expense Budgets
The Lehigh University General Expense Budget form for all indexes is similar to the format as
previous years. Expense budget forms can be printed with data relative to one's area of
responsibility from the latest version of the Banner Desktop Finance Database.
The forms are prepared specifically for your indexes, listing name, index number, financial
manager, and the current base expense budget amounts. The base budget is the original budget
adjusted by any permanent budget revisions authorized to date. (In most cases the base budget is
identical to the original budget.) Based upon the directions given by your respective dean and/or
vice president, you should project the amount for each expense area within the column headed
Proposed Budget (New Fiscal Year).
For 2015-16 there is no standard increase for expense categories. Consult with your dean or
vice president as to whether they are authorizing any change (flat dollar amount or percentage
change). If used for an individual index, the flat dollar amount or percentage change should be
used only to calculate total permitted increases for the index. They are not intended to mandate a
specific increase to each budget account code line item. The "FY15-16 Expense Budget Sheets"
should be based upon specific estimates for each line. Prior year’s budget and actual
expenditure, current year budget and actual expenditure to date, and program or activity level
changes anticipated in the future, should give you guidance for estimating the proposed budget.
Unrestricted (2xxxxx and 3xxxxx series) and Restricted (4xxxxx and 5xxxxx series)
To make budgeting easier for the large group of expense items that make up general office
operations, we have collapsed many of the account codes for office type items into one budget
account code. (The actual expenditures will still be charged to the specific account codes as in
the past.) This will make using certain Banner Finance screens easier for you to read. You may
use the old specific account codes, if you choose, but certain Banner screens may not be as easy
to read.
Account Code
Description
71000
Office Operations
72600
Travel
73200
Equipment Purchase
74000
Contracted Services
74100
Insurance
74200
Building Maintenance
74900
Utilities
797XX
Internal Charges
78690
Contingent
Additional space is also provided to accommodate other budget account code areas to record
other expense areas. Internal charges (797XX series) and the use of other budget codes is to be
coordinated and approved by the Controller's Office, extension 8-3140.
Once you have recorded the dollar amounts for each budget code area, you should total the
Proposed Budget (New Fiscal Year) column. At the bottom of the form you should list the total.
You may write notes in the “NOTES” field.
Designated Indexes Including Short Course, Seminar and Carry Forward
Indexes (6xxxxx)
The format of the budget form for short course and seminar indexes is the same as other
unrestricted expense indexes, except that anticipated revenue can be shown along with the
traditional expenditure budget. All revenue and expenses need to net to zero. Remember to take
salaries and employee benefits into consideration. All budget / expenditure codes are identical
and the forms are completed in the same manner.
EXPENSE BUDGET INFORMATION
A typical budget would be as follows:
Index 6xxxxx
50530
Conference (Revenue)
20,000
61700
Consultation
6,000
72000
Office Operations
9,500
77520
Other Equip Usage
1,500
78690
Contingent
3,000
TOTAL
0
NOTE: Profit/surplus should be budgeted in account code 78690 Contingent or 89799 Trans Reserve.
The above example would provide a budget for a short course activity that anticipates $3,000
surplus, which is budgeted in account code 78690. Should a retained balance exist from prior year
activity, you may budget for the greater level.
Financial managers who have difficulty estimating activity for the year may contact the
Budget Office at extension 8-4204 for assistance.
Restricted Indexes - (4xxxxx)
Salary and Wage budget forms and expense budget forms are provided directly to
individual financial manager.
Restricted index budgets must be based on the availability of fund balances. Therefore, the
budget may increase or decrease greatly from year to year, regardless of the authorized
percentage growth on unrestricted indexes.
When a restricted index will bear the costs for all or part of a regular university faculty or staff
member, the individual financial manager and responsible unit executive should be in close
consultation. In cases where the individual is to be paid from more than one index, the percentage
effort distribution for each index needs to be clearly stated.
When a restricted index is expected to bear the costs for incidental labor charges, such as wages or
clearing index charges for secretarial or technical services, it is suggested that only one estimated
total be entered under account code 61200 Nonexempt. If these charges are not expected to be
"incidental," and therefore probably represent significant commitments to specified regular staff
members, more detailed budget information should be submitted as noted in the paragraph above.