FINANCIAL LIAISON MEETING JUNE 2009 1 10079 DG

FINANCIAL LIAISON MEETING JUNE 2009 1 10079 DG 03. PPT/37 COMMnll January 12, 2007

FY 10 OUTLOOK AND PROPOSED BUDGET PLAN 2 10079 DG 03. PPT/37 COMMnll January 12, 2007

FY 09 Funding Shortfall All Divisions Auburn Campus $42. 9 M $28. 0 M FY 09 prorated – 9% Total reduction in FY 09 continuing funding Less: Continuing funding shortfall addressed in FY 09 $26. 4 M $17. 3 M $69. 3 M $45. 3 M $36. 6 M $22. 2 M Shortfall of continuing funds in FY 09 $32. 7 M $23. 1 M Reduction in FY 09 total AU state appropriations - 12% AUM $ 2. 9 M AAES $3. 2 M ACES $3. 5 M 3 10079 DG 03. PPT/37 COMMnll January 12, 2007

AUBURN UNIVERSITY-Auburn Campus Proposed Budget Plan Projected shortfalls/add’l costs Shortfall of continuing funds FY 09 Further reduction in state app FY 10 Mandatory & essential costs FY 10 Required to address budget needs 4 $23. 1 M $ 5. 8 M $10. 3 M $39. 2 M 10079 DG 03. PPT/37 COMMnll January 12, 2007

AUBURN UNIVERSITY-Auburn Campus Proposed Budget Plan Required to address budget needs $39. 2 M Less: Proposed tuition/fee increase $ 9. 0 M Permanent budget reduction $ 15. 1 M Shortfall of continuing funding remaining $15. 1 M One-time budget reductions $15. 1 M 5 10079 DG 03. PPT/37 COMMnll January 12, 2007

Budget Strategy • Continued focus on strategic plan • Enhance quality and reputation and maintain progress of past years • Reduce costs of operations where possible – Numerous budget and cost reduction initiatives underway • Inclusive budget process – 26 member Budget Advisory Committee with broad representation – Various meetings/discussions with Deans – Senate, Admin and Prof, Staff discussions – Solicited input on cost cutting, revenue enhancement • Internal and external messages from President • Permanent Budget reductions – all divisions 6 10079 DG 03. PPT/37 COMMnll January 12, 2007

Current Initiatives • Strategic Sourcing project – IT hardware & peripherals, office related products, travel, scientific supplies, cell phones and mobile devices (more shortly from PPS) – New contracts with discounts, rebates, bonuses, scholarships • Equipment threshold • Fringe benefit rate project and benchmarking– currently underway with October 1 implementation • Review of special budget allocations including ICRE, summer incentives, etc. • Life insurance and LTD cost reduction • Facilities prioritization process 7 10079 DG 03. PPT/37 COMMnll January 12, 2007

Budget Guidelines – All Divisions • • No salary increases for 2 nd consecutive year Promotions will be funded Mandatory and essential allocations Continuing and one-time budget reductions 8 10079 DG 03. PPT/37 COMMnll January 12, 2007

Budget Development Update 9 10079 DG 03. PPT/37 COMMnll January 12, 2007

Controller’s Office DOCUMENT CODES 10 10079 DG 03. PPT/37 COMMnll January 12, 2007

Banner Document Codes Banner Finance Document codes The list below provides a basic definition of the documents and the person or group to contact if you have questions. Code Definition contact person AE Thirteen month entries and accruals 3600 - Financial Reporting AL Alumni Accounting Chart M 7035 - Kristy Peralta AT Athletic Chart A Fupload feed 9841 - Jennifer Wright BB GL Balance load 5852 - Budget office BG Budget Load 5852 - Budget office BS Bookstore Direct Charge Feed 1355 - Resa Halsey BT Bank Transfer 3732 - Linda Ledbetter CC Copy Cat Direct Charge Feed 4200 - Glenda Miley DC Dixon Conference Center Dexter Jackson 11 10079 DG 03. PPT/37 COMMnll January 12, 2007

Document Codes Continued DJ Development Accounting Budget 7982 - Kathy Wilson DM Donor Management 7982 - Kathy Wilson FC Facilities Direct Charge Feed 9505 - Glenn Adams FR Financial Reporting Fuploads 3600 - Financial Reporting FS Food Service Direct Charge Feed 1487 - Beth Tatum FY Foy Student Union Direct Charges 1303 - Andrea Conti IM AUM Student Refunds 334 -244 -3733 Kay Knighton IT OIT Direct Charge Feed oitchgs@auburn. edu PC Purchasing Card 7771 - Debbie Griggs RE Chart R ARTF 3602 - Cathy Pate RF RESF Direct Charge Feed 1832 - Pat Smith RM Risk Mgmt Direct Charges 4533 - George Leaker SF Spirit Foundation Chart S 1299 - Donna Mitcham SP Sympro Cash Receipts Feed 5233 - Pam Lindsay TE TES Direct Charge Feed 1604 - Mike Hill TS Treasury Services Direct Charge Feed 0433 - Shauna Kilpatrick (Pool shares) 5231 - Regena Isbell (distribution ) TU TUF Accounting Chart T 9841 - Jennifer Wright 12 10079 DG 03. PPT/37 COMMnll January 12, 2007

Document Codes Continued D Document tag Number (Fixed asset) 5937 - Property Services E Encumbrance Number 7771 - Sara Henderson F Interface Document Number 5661 - ISS (documents are: SFS - Payroll - LMS ) G Deferred Grant Calculations JV 4847 - Contracts and Grants I Invoice Code 3639 - PPS Customer Support J Journal Voucher Code Budget Office for budget transaction -all others 3600 - Financial Report M Fixed Assets Accounting Adjustments 3600 - Financial Reporting N Permanent Tag number 5937 - Property Services P Purchase/Change Order Code 7771 - PPS Buyer R Requisition Code 7771 - PPS Buyer T Origination Tag Num (Fixed Assets) 5937 - Property Services S AU SFS Invoices 3771 - Jan Pettus 13 10079 DG 03. PPT/37 COMMnll January 12, 2007

Codes No Longer Used BUT you May Need for Historical Review AF AUM A/R Feed to Fupload 334 -244 -3733 Kay Knighton BD FRS Budget Load 5852 - Budget Office BK Bank Transfer 3602 - Cathy Pate EF FRS EFT correction Am. South Bank 7771 - Melissa Morris FA SIS BRS Accounting Feed 3771 - Jan Pettus FB FRS Balance loads 3600 - Financial Reporting FG FRS General Accounting Feed 3600 - Financial Reporting FJ Financial Rpt Accrual Fuploads 3600 - Financial Reporting FL LMS Accounting Feed 3762 - Julie Trussell FM AUM Accounts Receivable Feed 334 -244 -3733 - Kay Knighton FP HRS Payroll Accounting Feed 1487 - Beth Tatum IA AU BRS Student Refund 3771 - Jan Pettus NP Net Pay for Payroll 5661 - ISS RE Used by ISS to Reverse feeds 5661 - ISS SE Scholarship Encumbrances 5661 - ISS TC Tiger Card Direct Feed 1438 - Teresa Chandler WK PPS Works for Purchasing Card 7771 - Debbie Griggs DB Development Accounting Budget 7982 - Kathy Wilson DF Development Accounting Budget 7982 - Kathy Wilson 14 10079 DG 03. PPT/37 COMMnll January 12, 2007

Procurement & Payment Services Results of Phase I Cost Reduction Initiatives Strategic Sourcing 15 10079 DG 03. PPT/37 COMMnll January 12, 2007

Cost Reduction Initiatives • Strategic Sourcing project – Phase I is complete – Office supplies – IT hardware – Travel • Involved review of spending habits, renegotiation and bid of contracts, policy adjustments, demand management • Cost savings will be retained in units, allowing for better opportunity to manage budget reductions • Contract vendor show targeted for early fall 16 10079 DG 03. PPT/37 COMMnll January 12, 2007

Office Supplies and Related Products • Awarded to Office. Max • Includes paper, toner and office supplies (Toner portion of contract will go into effect Nov. 1) • Core list and non-core discounts (63% WAD off of a core list of 400 items) • Vendor providing significant financial incentives • “Retail Connect” cards and discounts for personal spending provided • Webinar training plus • Vendor kickoff show on July 14 at 9: 00 AM 17 10079 DG 03. PPT/37 COMMnll January 12, 2007

IT Hardware • Renegotiated contract pricing with Dell • Desktops/laptops • Larger number of bundles “AU Best Buys” (42% off of any bundle) 18 10079 DG 03. PPT/37 COMMnll January 12, 2007

IT Peripherals • Awarded to Gov. Connection • Includes printers, memory, monitors, keyboards/mice, storage devices and systems, video projectors • Volume Rebates • “Best Buy” printers are being established 19 10079 DG 03. PPT/37 COMMnll January 12, 2007

Car Rental • • • Awarded to Enterprise/National (contract # XZ 55028) Includes Local, Domestic, and International rentals Deeper discount pricing available for local rentals 5, 000 locations throughout the US Greatest savings achieved by renting compact & standard/midsize class vehicles • Current personal “preferred” status with other vendors will be honored/matched • Vendor kickoff event- week of July 6 20 10079 DG 03. PPT/37 COMMnll January 12, 2007

Benefits of Contract Usage • Achievable 1 st year savings of between 11%13% or $1 M - $1. 2 M by utilizing preferred vendor contracts • Electronic ordering will be available via PPS webpage and/or AU Access • Financial incentives and discounts will help offset current and future budget cuts • The higher the spend volume with preferred vendors the greater the volume rebates • When preferred vendor contracts are used, AU can easily track spend to allow for future price negotiations with vendors 21 10079 DG 03. PPT/37 COMMnll January 12, 2007

Cost Reduction Initiatives Strategic Sourcing Phase II Overview 22 10079 DG 03. PPT/37 COMMnll January 12, 2007

Phase II Overview • Strategic Sourcing project – Phase II began late May • AU Travel Processes & Procedures • Preferred Airline Agreement • Preferred Hotel Agreement • Scientific Supplies 23 10079 DG 03. PPT/37 COMMnll January 12, 2007

Management Reporting BANNER REPORTS 24 10079 DG 03. PPT/37 COMMnll January 12, 2007

Banner New Reporting e~Print Reminder that base reports are available monthly in e~Print which allow you to focus only on 10 x 001 base funds within your division, executive level or college. The report names are: • Base Budget Balances (excluding benefits 62 xxx) • Base Budget Balances Labor Only (60 xxx & 61 xxx) • Base Budget Balances Operational Expenses 25 10079 DG 03. PPT/37 COMMnll January 12, 2007

New Reports Continued • GL-SL Comparison Report Allows Budget Services to routinely identify variances that exist between a general ledger fund balance and an operating ledger available balance. Review covers numerous fund types but ignores ones where it is likely the fund balance and available balance should not be in sync (example – auxiliaries). 26 10079 DG 03. PPT/37 COMMnll January 12, 2007

New Report Similar to FRS 045 REPORT NAME: FZODOS 1 • This report has been in the works for over a year and has gone through numerous revisions and tests. We are ready to roll it out and am hopeful you will find the report useful. • Available at month end in e~Print by College, School or Department Organizational Hierarchy. • If college or school is selected, the report will accumulate funds by type at the department level and summarize by college at end of report. If multiple divisions are found (should not be), the information will sort so each division is displayed. 27 10079 DG 03. PPT/37 COMMnll January 12, 2007

FZODOS 1 • Fund information displayed includes: Unrestricted - (10 x 001 -10 x 004) fund types 1 A-1 D Contracts & Grants – fund types 2 A-2 D Appropriations – fund types 2 E, 2 F, 2 S, 2 T, 2 U Other Restricted – all other 2 x fund types Plant – typically unexpended plant/construction R&R – fund types 9 E-9 H • Each section above will have unique headers providing unique information based on the type of fund 28 10079 DG 03. PPT/37 COMMnll January 12, 2007

FZODOS 1 • A lot of information on this report. Stretching it across the page makes it appear small. When printing out this report, go into printer properties and change the page size to legal (8 ½ x 14). • On most printers you can also zoom to about 110% to make the print a little larger. 29 10079 DG 03. PPT/37 COMMnll January 12, 2007

FZODOS 1 Tips 1. Check to see if multiple divisions are present. Would typically suggest a problem. If pulling division 1 org, you would only want to see division 1 fund (rare exceptions). 2. The report works off of most current organizational hierarchy 3. In C&G section, fund balance at month end will usually be zero as revenues are booked to match expenditures made with reimbursement from agent to follow. Report focuses on budget versus spending. 4. C&G and Plant fund sections use the grant ledger 5. Other Restricted section available balance and fund balance should match. If not, review of details is necessary. 6. Appropriations (2 F) available balance and fund balance will differ by original budget. If different, will require investigation. 30 10079 DG 03. PPT/37 COMMnll January 12, 2007

FZODOS 1 • Go to e~Print Report for further explanation In our example we will review: the best way to extract the data sectional headings 31 10079 DG 03. PPT/37 COMMnll January 12, 2007

What’s Next • • • Fund Attributes – changes in process College Visits to resume Additional training options, new reports, workflow opportunities, etc. Example of benefits: Several months back, the Dean of the College of Veterinary Medicine requested a summary report be created that would show departmental balances. A new report is in the process of being written that many of you may find useful for your area. This report will provide by department within the college, base, other unrestricted, C&G, restricted, plant and R&R information. Each section within the report will show sources of revenue, carryover, expenditures and encumbrances, as well as supporting fund balance information. We are a couple of months away from completion. How can we assist your area? 32 10079 DG 03. PPT/37 COMMnll January 12, 2007