University Budget Advisory Board - FY24 Budget Priorities

FY24 BUDGET KICKOFF MARCH 2023

AGENDA Welcome FY24 Landscape University Budget Advisory Board Budget Timeline FY24 Process and Expectations Anaplan Refresher 2

LOOKINGATFY24 No significant new flexible funding sources expected Focus needed on existing and expected personnel investments Infrastructure investments required Technological & Building Maintenance Upcoming recommendations from Campus Master Plan (summer/fall) with corresponding Sustainability Initiatives (Power Plant needs to be addressed) 3

UNIVERSITY BUDGETADVISORYBOARD UBAB Charge / Purpose Important deliberative and advisory body for our university. UBAB will consider our constraints and opportunities in setting budgetary priorities and identify fiscally responsible strategies to meet these priorities, advance our mission, and enhance the financial sustainability of our university. At the forefront of UBAB s initial priorities will be developing guiding principles for budgeting priorities principles that can guide us from year to year regardless of the level of resources. UBAB will prioritize developing a three-year plan that will lead to a minimum 10% increase to faculty and staff salaries during that timeframe...work to be completed in the fall with implementation of salary increases beginning January 2023 and plan that can be incorporated into the fiscal year 2024 budget planning process. 4

UNIVERSITY BUDGETADVISORYBOARD Principles/Guidelines Budgeting Priorities Budget priorities support the institution s core functions and are aligned with the university mission as expressed by Elevating Excellence 2025. Budget decisions are informed through data-analysis and projections. Near term allocation complements long term planning. Units manage operations within allocated resource levels across all funding sources with discrete allocation of personnel and non-personnel budgets. 5

UNIVERSITY BUDGETADVISORYBOARD Principles/Guidelines Budgeting Priorities VP s reallocate and redesign functions to reduce marginal operating costs. Units transparently manage funds with maximum effectiveness and understanding that unrestricted revenue and funds outside unit operations are shared university funds. Budget reorganizations require transparent analysis and coordinated communication from initiation of change to process completion. 6

FY24 BUDGET TIMELINE March 8th: TODAY let s talk budget March 8th: Anaplan templates open for entry March 20th: DUE DATE Position review and changes finalized in Anaplan April 3rd: DUE DATE Local DeptIDs without UCA funding templates completed in Anaplan April 17th: DUE DATE Local DeptsIDs with UCA funding and State budget templates completed in Anaplan April 18th May 5th: UOB staff review and compilation of FY24 budget May 6th: Budgets due to ABOR 7

FY24 BUDGET PROCESS POSITION BUDGETING Review each position Is FTE count correct Split funded positions confirmed they total 100% Is the funding source correct No: submit ePar and/or funding change form Split funded positions are budgeted correctly by all departments involved Is the salary amount correct No: Enter the correct salary ERE Anaplan automatically calculates the ERE 8

FY24 BUDGET PROCESS LOCAL FY23 ESTIMATES FY24 Year-end Estimates Forecasting estimates need to be manually added to the local finance template FY24 Est Year End Budget column Will any of your DeptIDs end FY24 with a deficit? YES: Email a completed Plan of Action Form to the UBO (your budget representative) by the March 29th due date 9

FY24 BUDGET PROCESSFY24 FINANCIAL TREEINPEOPLESOFTFINANCIAL What is a Financial Tree? The hierarchy structure of your financial accounts Cabinet Branch Department DeptIDs FY24 tree pulled into Anaplan reflecting any requested reorganizations Review the tree for your area and communicate any changes ASAP 10

FY24 BUDGET PROCESS LOCAL FY24 REVENUEBUDGET FY24 Revenue Budget Entry Program Fee RSA will remain at 14% 86% of program fee revenue is directed to designated fund DeptsID Enter FY24 projected revenues into the FY24 Budget Input column Be planning any administrative overhead costs that may be associated with your revenues 11

FY24 BUDGET PROCESS LOCAL FY24 EXPENSEBUDGET FY24 Expense Budget Entry Salary expense (711) and EREs (720) automatically load from the position budget template Non-personnel expense can be reallocated with the changes to the budget netting to zero Administrative Overhead Charge Consider this expense when setting fees and rates for some services and conferences Expense is budgeted as an operating expense in class 741 University Charges AUXILIARY 15% DINING & HOUSING 30% DESIGNATED DEPTIDS 15% 12

FY24 BUDGET PROCESS LOCAL FY23 EXPENSEBUDGET Risk Insurance Vehicle calculation is based on total number of automobiles Manually enter budget in account class 741 University Charges Liability based on % of prior year personnel services (711, 712, 713, 714, 715) Automatically calculated in account class 741 University Charges VEHICLE COMPONENT GENERAL LIABILITY 400 $ 2.40% 13

FY24 BUDGET PROCESS LOCAL FY23 EXPENSEBUDGET ITS Network Charge and Long Distance Charge for network expenses is calculated as a % of personnel services (711, 712, 713, 714, 715) Automatically calculated in account class 740 Utilities/Other Ops/Insurance ITS NETWORK CHARGE 1% Long Distance Calls Continue to be an additional charge and should be budgeted Manually enter budget in account class 740 Utilities/Other Ops/Insurance 14

FY24 BUDGET PROCESS LOCAL FY24 TRANSFERBUDGET Non-UCA Transfers Between DeptIDs Input on the Local transfer tab at DeptID level Coordinate with the other departments or Fiscal Oversight representatives if part of transfer is outside of your direct area Summer Attainment Transfer Acct Class 810 Offset Acct DEPTID 7900080F21 Capital & Debt Transfers Type Acct Class 840 840 Reason Capital Project Debt Service Capital Project Debt Service Winter Attainment Transfer Acct Class 810 Offset Acct DEPTID 7100170W21 15

FY24 BUDGET PROCESSSTATE FY24 The State budget template calculates the FY24 Final Budget by adding the FY23 Starting Budget with the FY24 Budget Reallocation column Non-personnel expense can be reallocated with the changes to the budget netting to zero Make changes in the FY24 Budget Reallocation column 16

FY24 RATES FS Trade Labor Rates: FY24 Calcuated Rates (Based on FY22 actuals and adjusted salaries) General Maintenance Mechanics $ $ Building Access Services 65.21 $ 28.99 $ Custodial 31.55 $ 31.55 $ $ $ HVAC 88.54 $ 34.50 $ Landscaping $ $ $ $ $ $ $ Carpentry $ $ Electrical 71.21 $ 19.83 $ Paint 60.50 $ 28.88 $ Plumbing 73.19 $ 19.83 $ 57.51 44.60 46.51 46.51 0.63 0.41 0.48 0.58 0.35 57.98 26.69 FTE SW 1.87 1.82 SF Campus Living SF State SF Athletics $ $ 1.82 1.82 SF Dining & Campus Services SF Rec For Campus Living Only: For purposes of Custodial billing, the billable SF is the same as FY23 at $1,574,425 SF. For purpose of LOS billing, the billable SF is the same as FY23 at 1,031,267 SF. For Rec Only: For purposes of Custodial billing, the billable SF is the same as FY23 at146,196 SF. For purposes of LOS billing, the billable SF is the same as FY23 at 453,602 SF. For Campus Services Only: For purposes of Custodial billing, the billable SF for ATC is the same as FY23 at 13,561 SF. For purposes of Custodial billing, the billable SF for Dining is the same as FY23 at 49,399 SF. For Athletics Only: For purposes of LOS billing, the billable SF is the same as FY23 at 269,685 SF (after mid-year FY23 correction) 17

FY24 RATES Utility Rates: The utility rates are created using a new methodology for FY24 that provides a greater accuracy for how generation costs are billed. The actual monthly utility cost from our vendors to produce each commodity is added to the operation cost for a month, then divided by the actual usage of the commodity for that month to get each month s rate. Each month we bill exactly what it costs to produce the commodity, and 1/12th of our yearly operating costs, preventing future deficits or overages. This method we developed to account for changes in utility costs from vendors, and energy reduction efforts across campus. o Under the old method if buildings use less energy than expected, utilities collects less than the budgeted operating costs. Below are the estimated average calculated rates based on FY22 data. Each month will fluctuate based on actuals incurred. DESCRIPTION Steam HTHW Chilled Water Electrical Gas Description of Billable Units mmbtu mmbtu Internal Recharge Rate 16.37 $ 36.48 $ 20.44 $ $ External Recharge Rate 18.33 $ 40.86 $ 22.90 $ $ Water Storm Reclaim Sewer kgal ERU 7.82 $ 5.40 $ 8.76 $ 6.05 $ Refuse months 7,924.53 $ 8,875.48 $ kwh therms 0.76 $ 0.85 $ kgal $ $ kgal 6.06 $ 6.79 $ 0.11 0.12 - 0.01 Engineering Health & Safety: Fee Engineering & Safety Engineering Inspection FY24 Rate 83.18 67.21 18

FY24 RATES Facility Use Rates: FY24 FACILITY USE RATES External Non-Profit 20% Discount NAU Student Group Rate Internal Rate External Rate $2,000 Plus Labor & Equipment $700 Plus Labor & Equipment $700 Plus Labor & Equipment $1,000 Plus Labor & Equipment $700 Plus Labor & Equipment $1,600 Plus Labor & Equipment Facility Ardrey Memorial Auditorium (Capacity 1300) $400 Plus Labor & Equipment $500 Plus Labor & Equipment $1,600 Plus Labor & Equipment Ashurst Hall (Capacity Depending on Setup, Max 300) $225 Plus Labor & Equipment $350 Plus Labor & Equipment $560 Plus Labor & Equipment $225 Includes Labor $350 Plus Labor & Equipment $560 Plus Labor & Equipment Du Bois Ballroom/Library $275 Plus Labor & Equipment $400 Plus Labor & Equipment $800 Plus Labor & Equipment Kitt Recital Hall (Capacity 250) $225 Plus Labor & Equipment $350 Plus Labor & Equipment $560 Plus Labor & Equipment Kitt Atrium (Capacity 150) Prochnow $250 Includes Labor $350 Plus Labor & Equipment No Charge (2 Hours or Less) $50/half day $1,280 Plus Labor & Equipment Auditorium/Union Field House (Capacity 800) No Charge (2 Hours or Less) More than 2 Hours = Internal Rate $100/full day $200/half day Meeting Rooms $400/full day 19

FY24 RATES University Transit Services: FY24 PERMIT RATES Permit Type FY24 Permit Type FY24 *Employee Employee Flexible Bulk Package via Park Mobile reservations using NAU ID Student Commuter (new FY23) Commuter overnight (FY23) Resident (new FY23) Garage (employee & commuter) Garage resident (new FY23) Motorcycle All Area Reserved Stall Evening Permit $500 Vendor Fleet $875 25 pack $75.00 50 pack $125 Department Guest Permit (Lot) Department Guest Permit (Garage) Oversized vehicle day permit Construction daily (lot/zone) Construction daily (all area Monthly Construction (zone) Monthly Construction (All Area) Kiosk Daily PM single use Garage - Hourly Garage Daily $6 $8 $500 $525 $525 $670 $705 $270 $705 $1,050 $255 $10 $8 $12 $100 $125 $8 $5 $3 $12 $4 per hour up to 2 hours in popular areas Resident Overflow (P62B, P13A) Part-Time employee Contractor Service Vehicle $405 $145 $705 $250 ParkMobile - hourly ParkMobile - Daily Meter - single space $8 $2.00 20

FY24 RATES 21

FY24 RATES 22

ANAPLANREFRESHER www.Anaplan.com 23

QUESTIONS AND CONTACTS Questions? Thank you for your partnership! We look forward to continuing to work with you all this budget season! Budget Contacts: Alisa Badenhorst: 523-6254 Megan Cunningham: 523-5329 Maria Galvez: 523-8344 24