During the past week a number of questions arose that may be of general interest. They are reported below.

Retirements: Where do the severance payments for expected retirements get budgeted?

Answer: Retirement severance payments are budgeted centrally and the University maintains a specific reserve to fund retirement payments. Therefore, for budget planning the colleges and departments do not have to estimate retirement payments. Non-retirement severance payments are the responsibility of the college/department budgets. However, during the 2014 budget year, colleges and departments should notify the budget office of retirements as they take place and request transfer of additional spending authority (budget) to cover the retirement payment.

Faculty Overloads (and other contractual payments above base salary): How should faculty overloads be shown on the budget worksheets

Answer: Because Resident Faculty overload payments are priced at a premium rate (Base Salary x 2.25% x number of credits), we need to detail the overloads separately. This should primarily involve assignment numbers 2112, 2125, and 2219.

First account for the regular scheduled time for each faculty member Please calculate faculty overloads as a % of FTE and report them in a separate column to the right of the column labeled "FTE FY2014".

For example, if you are budgeting a 3 credit hour overload for a full-time resident faculty member, first account for 100% of the non-overload time of this faculty in the cost center(s) to which his or her time will be charged. Then, the overload would be calculated as 3 credits/24 credits = 0.125 or 12.5% FTE You will show the fractional FTE for just the overload in the column to the right of the "regular" FTE. This will allow overloads to be priced appropriately.

If a faculty member is receiving some other form of additional payment that is a flat dollar amount above base salary, then divide the dollar amount of the extra payment by the faculty member's base salary, express the amount as a fractional FTE, and add the fraction to the non-overload FTE.

For example, if a faculty member will be receiving an extra contractual payment of $1,000 and has a base salary of $100,000, then the fractional FTE is .01 or 1% and the total FTE reported in the worksheet column titled "FTE FY14" would be 1.01 and would be distributed among the cost centers he or she will charge in the "FTE FY14" column of the worksheet. If that faculty member is also working overload credits, 1.01 FTE would still be accounted for in the "FTE FY14" column of the worksheet and the overload would be expressed as a fractional FTE to the right of the regularly scheduled FTE (by cost center)

Salary Dollars: Because we are budgeting FTE's for faculty and staff, how will we know how much this will cost?

Answer: You will return your personnel budget (FTE worksheets) to the budget office by April 8, 2012. The budget office will then use the Budget Module which is preloaded with current rates, cost of living estimates, estimated contract settlements, new insurance rates, etc., to project the dollar-amounts of spending required to pay the workforce you have estimated. The dollar estimates will be returned to you by April 15th so you can include them and provide a fully dollar-denominated budget to your Vice President.

Document flow: To whom should the completed budget estimate (request) be sent?

Answer: When a department or college has completed its initial 2014 budget request, it should be sent to the Vice President for your area with a copy to the Budget office.

Individual Vice Presidents may request additional information or have changes they wish to discuss with the originating college or department before they concur with the requests. Collectively, the Vice Presidents have a collegial process to coordinate the overall budget. They will ensure that all parts of the budget are optimized to meet the University's goals for 2014. As part of that process, the Vice Presidents may need to work with their colleges and departments to revise initial requests in order to meet the overall University budget targets for 2014.

The budget office will retain record copies of the budget at each step of the budget formulation process (college department request/vice presidential recommendation/PC approval) to maintain a record of decisions made at each step in the process.