Budget Construction Guidelines

Bloomington Campus
Preliminary 2018-19 Budget Construction Information

General Fund and Non-General Fund Accounts

This document, along with supplemental details contained in the attachments, provides the necessary information for preparing your FY 2018-19 budget requests.  As in past years, the Budgetary Administration and Planning Office will formally review each budget to check for compliance with campus and university policies.  Any deviations from these guidelines or policies must be approved by Budgetary Administration and Planning.

Our focus in developing this budget is, as always, the responsible stewardship of IU’s resources. Each of us is accountable for how we allocate these funds and our decisions should be guided by our continued focus on student affordability and supporting excellence in our core missions of teaching, research, and service. The budget should be a template of the plans for the upcoming year as units should strive for aligning budgets closely with planned activities.  Aligning unit priorities with campus strategic goals will further enhance our ability to leverage the collective assets of the campus, create efficiencies in implementation, and foster connections among units and systems that can lead to improved outcomes for students and faculty.

We have added a new section “executive summary” to provide quick updates to important changes.  As always, please feel free to contact us at any time.

Purpose

The purpose of this summary is to succinctly highlight some of the important updates and items contained in this document:
  • The 1% mandatory increase is at the RC level.  The additional potential increase of 2% increase is at the RC level only. 
  • Increases above 8% (faculty and staff) must have written justification submitted to the campus budget office by April 9, 2018 for approval by the Provost (submit to aheeter@iu.edu)
  • Under the “All Funds Budgeting – Compensation Documents” section (Page 9), the Budgeting Academic Leaves of Absence link is updated.
  • Under “Employee Benefit Rates for 2018-19, All Fund Groups” (Page 10), the benefit rates in the table have been updated.
  • Under “NIH Salary Limitation” (Page 10), reflects updated text.
  • Under “Distinguished Professors” (Page 15), reflects updated text.
  • Under “Expiring C&G Accounts” (Page 16), reflects minor text updates.
  • Transferring funds within RC/sub-fund group-obj 9902 (Page 16).
  • Under “Unbudgeted Income, Instructional RCs” (Page 17), reflects important text updates in red font.
  • Budgeting a) Operating Surplus/Deficit - object 7970, and b) Unallocated funds -object 7900 on general funds ONLY (Page 17).
  • Budgeting Non-Recurring Cash-obj 7971 on non-general funds (Page 18).
  • “SAA-FEL 2018-19 Premium Rates” table (Page 20), has been updated.
  • Under “Planned Use of Reserves and Budget Narrative” (Page 25), a new item 2. e., has been added.

1. Salary Policy for Fiscal Year 2018-19—All Fund Groups

The salary and wage policy for fiscal year 2018‐19 provides guidelines for salary and wage setting that supports the objective of optimizing the university’s ability to continue to attract and retain outstanding faculty and staff talent.

The salary and wage policy is predicated on an overall budget framework WITHOUT structural deficits.

  • Each campus and RC average base salary increase pool is approved up to 3% for continuing faculty and staff:

    1. The 3% increase pool includes a mandatory increase of 1% (increase pool), with the exception of:

      1. Union employees

      2. Employees with annual base rates below $31,200

    2. The additional increase of up to 2% is permitted assuming the organization has available resources.

    3. Exceptions to the 1% mandatory increase require approval by the Executive Vice President and President.

    4. University Administration RC’s will be centrally funded for the mandatory 1% increase. Up to an additional 2% will be allowed, per policy, based on the RC’s own funding ability.

  • Increases above 8% require Campus and Associate Vice President for Human Resources Review.

A list of includable reason codes is provided below. An employee receiving a 0% increase must be coded with one of the following codes. The use of these codes will NOTexclude an increase from the salary average increase calculation:

  1. INS - Insufficient Funds.

  2. MID  - Employee received off‐cycle increase during 17‐18 budget year resulting in no 7/1 increase or a reduced increase %.

  3. NEW - Academic, Professional staff and non‐union support or service new hire resulting in no 7/1 increase or a reduced increase %.

  4. PER - Less than satisfactory performance, which should be documented by a performance improvement plan or other corrective action in FY18 or within the previous 12 months, resulting in no or reduced increase for FY18.

  5. TER - Employee will terminate or retire in FY19 and should not receive an increase.

The policy provides for an exception for individuals excluded from the average for the following reasons ONLY (please code for exclusion every funding line with the reason code and calculated amount of the exclusion).Excludable Reason Codes Applicable to Faculty:

  1. EQU - Affirmative Action approved increases submitted prior to March 2018.

  2. FLT - Employees earning less than $31,200 annualized, receiving a flat increase.

  3. INT - Employee salary increases mandated by the Department of Labor.

  4. MAR - Market adjustments for faculty that have fallen behind in base salary as compared to similar appointments on campus. The request will be submitted to the Campus Budget Office and Campus Academic Affairs Office for approval.MYR - Written agreement completed prior to April 9, 2018 that include a salary increase requirement for the FY2018‐19. Please provide a copy of the individual’s agreement.

  5. NTN - Newly tenured faculty.

  6. PRO - Faculty receiving promotion in rank or newly named as Distinguished Professors.

NOTE: Faculty with the exclusion code of NTN or PRO should receive the standard increase associated with the exclusion as well as the salary policy increase established for the campus. The total amount will be entered into the request field and the exclusion amount entered into the reason code amount field.

Excludable Reason Codes Applicable to Staff:

  1. EQU - Affirmative Action approved increases submitted prior to March 2018.

  2. FLT - Employees earning less than $31,200 annualized, receiving a flat increase.

  3. FYS -Fiscal year supplement is required for Non‐Exempt staff above the maximum salary range. This reason code may also be used for exempt employees above the maximum of the salary range or other non‐union employees who are receiving compensation well above their position requirements for the salary range.

  4. HLR - Staff position duties have substantially changed within level and the position now has a sustained increase in responsibility documented in a position description approved by Compensation during FY 2018. In addition:

    1. In order to use this code, the increase cannot have already been processed via a Mid‐year Pay Adjustment

    2. The staff position is eligible for a salary/wage increase up to an additional 8% (combining the HLR percentage with the campus/RC salary policy will result in a higher percentage)

    3. Requested increases should not exceed the associated salary range maximum or create internal equity or compression issues

    4. Submit the increase request and supporting documentation to Compensationvia hrcomp@iu.edu by April 9, 2018.

  5. INT - Employee salary increases mandated by the Department of Labor.

  6. MAR - Market adjustments for employees that have fallen behind in base salary as compared to similar positions on campus and/or in the market. External market data must be provided or approved by Compensation. Submit the request and supporting documentation to Compensation via hrcomp@iu.edu by April 9, 2018.

  7. MYR - Written agreements completed prior to April 9, 2018 that include a salary increase requirement for FY18‐19. Please provide a copy of the individual’s agreement to the campus budget office via aheeter@iu.edu

  8. RCL - Staff either (a) reclassified to a higher rank, or (b) promoted to a different position of higher rank effective 7/1/2018.

For Employees with Base Rates Less Than $31,200

Employees earning less than $31,200 on a full time calculation*, after a 2% salary increase, will receive an additional base increase up to $600 for monthly or $603.20 for hourly. This increase is limited to the amount needed to reach $15/hr or $31,200/annually.

A full‐time equivalent rate will be calculated for part‐time appointed employees and their salaries will be pro rata. Under separate cover, a file of budget CSF Tracker records will be sent to each campus to assist in budgeting and determining the costs, by account. For employees not covered by union agreements, salaries for those paid less than $31,200 ($15/hr) should be set according to this policy, and the reason code “FLT” assignedto the increase.


The PER excludable code should be used for employees with less than satisfactory performance. This should be documented by a performance improvement plan or other corrective action in FY18 or within the previous 12 months.


*Dually employed faculty or staff can be excluded from this policy using the excludable code MYR.

Support and Service Staff Represented by Unions
For support and service staff covered by a union (i.e. AFSCME Service, AFSCME Police, IATSE and CWA), the salary increase pool available for distribution shall be calculated based on the following:

The salary increase pools for employees represented by unions will provide for an overall average of 2%.
Employees earning less than $31,200 on an annualized full‐time equivalent rate after the salary policy increase, will receive an additional base increase up to $603.20 annually, with this increase limited to the amount needed to reach $15/hr or $31,200/annually. A full‐time equivalent rate will be calculated for part-time appointed employees and their salaries will be pro rata. Under separate cover from the University Budget Office, a file of budget CSF Tracker records will be sent to assist in determining the cost, by account for budgeting in the salary reserve line.

Salary statistics by RC are calculated independently within three employee classifications: Faculty, Professional Staff, and Support/Service Staff.

The lack of a percentage maximum does not guarantee campus or university approval of proposed salary or wage increases. Units must be able to justify large increases, no increase, or salary and wage decreases for individual employees. All increases should be covered by existing unit budgets. Resulting salaries and wages should be commensurate with those of similar job ranking across the university. Provide justifications for increases in excess of 8% with your budget submission.

As always, please do not share salary and wage recommendations with employees prior to Trustee approval of the FY18‐19 budget.


All Funds Groups
Table 1: Employee Benefit Ratess for 2018-19*
Benefit & Object CodeRateCalculation
Group Insurance/Fee Courtesy
5625
19.31Based on the anticipated budget level for salaries of academic staff, professional staff, and clerical and service staff.
FICA
5760
6.61Based on the total salary and wages budgeted that are subject to FICA.
Retirement Exempt
5772
12.17Based on the total participants budgeted salaries.
(PERF) Retirement
Non-Exempt
5773
12.68Based on the total participants budgeted salaries and those wages budgeted in PERF hourly, object code 3050.
Academic faculty and Exempt staff total benefit rate is 38.09%.  Non-exempt staff total benefit rate is 38.60%.

*See “Employee Benefit Calculation Percentages” table.

The NIH issued this guidance and updated the Salary Cap Summary site April 4th, which was retroactive for the Executive Level II salary limitation that increased from $187,000 to $189,600 effective January 2018.  The Academic 10-month salary limitation increased from $141,132 to $142,200.

For new proposals only, the Executive Level II salary rate of $189,600 may be used for the NIH salary cap.

Please contact Rayna Amerine (ramerine@iu.edu) if you have any questions.

Salaries requests for non-union support staff should be set by the department/school.  These positions include Confidential, (GS) General Supervisors, (NU) Nurses, (NA) Nursing Assistants, and some (TE) Technical positions physically located on other campuses but paid on a BL account.

The hourly rate is the basis for calculating increases for all employees that are paid bi-weekly.  This also includes the PAO & PAU classifications.

Bi-weekly employees should have the same hourly rate regardless of how many accounts support their salary.

Employees can have different hourly rates only if they are paid from more than one position number.

If you have any questions, please contact Patti Quimby (pquimby@iu.edu).

D. Academic and Staff Information

The following policy applies to Vice Presidents, Associate Vice Presidents, Assistant Vice Presidents, Chancellors, Provosts, Vice Chancellors, Vice Provosts, Associate Vice Provosts, Assistant Vice Provosts, Deans, Associate Deans, Assistant Deans, Directors and other administrative positions as identified by the Chancellors, Provost or President – who were not in one of these positions on June 30, 2004.  It shall be used to determine the salary of individual who holds both a faculty and administrative position when the individual relinquishes or is removed from the administrative position.
 
At the time an individual assumes both faculty and administrative positions, a memorandum shall be created that sets forth the 12-month salary of the individual.  A determination shall then be made by the appointing official that establishes the portion of the salary that shall be considered the faculty component of the individual’s salary and the portion of the salary that shall be considered the administrative component of the salary.  From year to year, as raises may be given, the raises shall be apportioned between the faculty component of the salary and the administrative component of the salary.  These figures shall be maintained by the appointing official with a copy provided to the faculty member/administrator and to the appropriate campus faculty records office.
 
At such time as a faculty member relinquishes or is removed from the administrative position, the faculty member’s salary shall return to the faculty component of the salary and the faculty member shall no longer be entitled to the administrative component.  In addition, the faculty component of the salary, shall revert to the ten-twelfths (10/12) of the faculty component if the individual returns to an academic year teaching position.


The procedure for calculating and budgeting the faculty salary for individuals who are taking on an administrative role will have two components for their salary.

The first component is the traditional 12-month base budgeted on object code 2000.   The second component is tied to the “administrative” role, which will be budgeted on object code 2000, sub-object code ADM.

Option 1 example, for salary increases 15% or greater:

Step 1:
Faculty A, $150,000/10 ($15,000/mo.) change to 12- month, becomes $180,000 ($15,000/mo.)
 
Step 2:
Official sets the “new” base to be $220,000/12 months ($18,833/mo.)

Step 3:
ADM to be 15% of $220,000, $33,000
 
Salary View:
Object code 2000, $187,000 [$220,000 - $33,000], 85% and Object Code 2000 ADM, $33,000, 15% ($18,333/mo.)
 
RETURN to FACULTY:
Remove ADM, $33,000

[$187,000/12 mo. ($15,583/mo.); $15,583 X 2 mo. = $31,166; $187,000 - $31,166 = $155,834]

Return to 10-month salary level, $155,834 ($15,583/mo.)

Option 2 example, for salary increases less than 15%:

Step 1:
Faculty A, $150,000/10 ($15,000/mo.) change to 12- month, becomes $180,000 ($15,000/mo.)

Step 2:
Official sets the “new” base to $201,600/12 months

Step 3:
ADM to 10% of $201,600, ($20,160/mo.)

Salary View:
Object code 2000, $181,440, 90% and Object Code ADM, $20,160, 10% ($16,680/mo.)

RETURN to FACULTY:
Remove ADM, $20,160

$201,600 - $20,160 = $181,440/12 ($15,120/ 12 mo.)

Return to 10-month salary level, $151,200 ($15,120/mo.)


  1. Faculty salary minima shall follow the campus salary guidelines in determining what the average salary increase should be. If there are recommended changes from the Bloomington Faculty Council, updates will be sent to units.
       LI/IRX1  $63,555.43  Full Professor/Librarian
       LI/IRX2  $51,979.55  Associate Professor/Librarian
       LI/IRX3  $41,400.34  Assistant Professor/Librarian
       LI/IRX4  $38,491.00  Instructor/Affiliate Librarian/Lecturer

  2. Post-Doc Fellow and Research Fellows
    The minimum for postdoctoral fellow and research scientist (RSP & RSX) - $40,000/12

  3. Research Associate and Academic Specialist
    The minimum for research associate and academic specialist – (RSS & UAS) - $37,000/12

All Funds Group

All Fund Groups except Contract & Grant

  1. Vacant Positions: Vacancies create an opportunity to examine your unit’s operational needs, if positions are not going to be filled in the near future you should delete that position and use the base funds to reallocate to meet other priority needs.  Note: Deleting the record in budget construction only removes funding.  The position is still “active” until a Maintain Position e-doc is processed to change its status.  If you have any questions, please contact Aimee Heeter (aheeter@iu.edu).

  2. Budgeting Vacant Positions: Vacant positions must be budgeted with the desired amount for a planned future hire, otherwise, the minimum amount for that vacancy rank is to be budgeted.

All Fund Groups

When budgeting salaries for employees who are split funded between accounts, Responsibility Centers, and/or Campuses;

  • Make contact with the appropriate individuals to discuss the distribution of salary and funding percentages for employees that you share so that everyone has the same understanding. This open communication will improve the accuracy of the salary submission and reduce the need for campus follow-up.  A new feature available in KFS allows view only access of the other portion of a split employee’s salary and percent of funding.  We trust the ability to view this information will be a valuable tool for users during the salary setting process. View “New View/Report Functionality”: https://fms.iu.edu/afb/wp-content/uploads/2016/02/AFB-Business-Practice_New-View.Report-Functionality.pdf

 

When entering the salary request and percent, the amounts entered must mathematically agree based on the total salary/fte for the employee on eachaccount

 

The Total Intended field can be used as a communication tool between RC’s for split-funded employees to reflect the proposed annual salary and fte.  The field can also be used for those employees whose total funding will be budgeted less than 100%. 

 

Note: Because an employee’s benefits can be affected when their appointment drops below 100%, please contact the appropriate Human Resources office if additional guidance is needed.

 

Questions can be directed to Patti Quimby (pquimby@iu.edu).

General Fund Only
Where necessary, instructional RC’s are responsible for providing salary and fringe benefit increases to its summer faculty and summer SAA appointments. Use object 2010 for Salary Plan AC1, 2310 for AC2, and 2370 for AC3, AC4 & WSG

 

General Fund Only
Strategic Hires base funding will be provided for the FY 2018-19 post-July 1, 2018.   Please indicate on the hiring e-doc, place in the notes section that the hire is part of the Strategic Hiring Program.  During budget construction, budget the amount you expect to receive from the campus, use object code 2003 and create a sub object code which includes the Strategic Hire employee’s initials/name.

BL Campus funding support for approved Dual Career (Spousal Accommodation) appointments will be transferred post July 1, 2018.  Cash support is based upon the original hiring amount per percentages outlined in the agreement.  A funding pattern such as 75% Year 1, 50% Year 2, and 25% Year 3 is common, however, variations do occur. Please note on the edoc if the HIRE is Dual Career and attach any supporting documentation.

Please direct questions to Patti Quimby (pquimby@iu.edu).

President McRobbie selects distinguished professors at IUB and IUPUI.  The Distinguished Professor title becomes effective January 1 and the President will provide $10,000 as supplemental pay.  The supplemental pay will be provided each January and remain unchanged (no incremental increases) until their termination from the university.  The $10,000 supplemental pay will be reflected annually during budget construction via one of the President’s accounts.  Each school may provide research funds if they so choose.
Please direct questions to Aimee Heeter (aheeter@iu.edu).

The Provost identify IUB Professors to receive the title of Rudy Professor.  This title remains with the individual until their termination from the university.  Annual funding of $10,000 will be transferred into the individual’s specific Rudy Professor (23 account) to be used for compensation or research expenses.
 
Please direct questions to Aimee Heeter (aheeter@iu.edu).

 

The Salary Policy for FY 2018-19 applies to employees in ALL fund groups. Those funded in whole or in part by Contract & Grant (C&G) accounts are NOT exceptions to the policy; therefore, salary increases will be given during budget construction, not on the employee’s anniversary date.

Contract and Grant accounts may expire between budget construction and the KFS budget load in late June.  Do not request extensions or underwrites to extend the grant account beyond July 1. 

If the grant account has another year of funding which is expected to arrive prior to July 1, set the employee’s salaries using the current C&G account during budget construction.  If the new account is active prior to the budget load, the system will automatically load the salaries to the new account.
 
If the grant funding ends prior to July 1, with no future project funds expected, the system will load the employees budgeted salaries to the expiring grant account, and the unit will need to move the salary to another account after July 1. 
 
In mid-June, ORA will review the budget construction data prior to the budget load and work with departments to resolve any remaining employees budgeted to expired projects.
 
Fringe benefits are not calculated on the budgeted salaries in C&G accounts.
 
Do not budget hourly expenses in C&G accounts.
 
Do not budget vacant positions or non-salary expenses such as supplies, travel, and equipment.
E. Staff Information

  1. Unbudgeted Income, Instructional RCs
    Your 2018-19 budgets must use only the income shown on the Budget Information Sheet. Use of unanticipated and unbudgeted income received during the year will not be permitted without prior discussion with the Budgetary Administration and Planning Office. The campus loads all income.

    Individual Units/RC should not change income.  If you have any questions, please contact Aimee Heeter at 5-0117.

    Incidental Income will be loaded into your accounts when budget construction is available.  Income and ‘transfers in’ (9915 object code) amounts should not be changed.

  2. Budgeting the Use of Reserves (Fund Balances):
    Budgeting Operating Surplus/Build-up of Reserves and Deficit/Use of Reserves: https://fms.iu.edu/afb/wp-content/uploads/2016/02/AFB-Business-Practice_Budgeting-Surplus-Deficit.pdf
    Budgeting Unallocated Funds: https://fms.iu.edu/afb/wp-content/uploads/2016/02/AFB-Business-Practice_Budgeting-Unallocated-Funds.pdf
    Units will be requested to provide details regarding reserve funding.  If negative reserves are built into the budget, additional information will be requested regarding coverage by year-end FY 2017-18.  Details should be provided to Aimee Heeter (aheeter@indiana.edu) with your narrative.

  3.  Undergraduate Fee Income for RCs:
    Tuition income related to the “tuition reserve” will be distributed to the units based on the undergraduate fee income distribution model.  Funding will be distributed to the appropriate RCM 87 accounts.

    Undergraduate Fee Income distribution is based on three years per term.  One-third of the distribution is predicated on actual credit hours for 2018-19.  Therefore, full distribution of fee income will not occur until after the full-refund period for 2nd 8-week courses.

    Do NOT add or change income object codes, IUF or otherwise, in budget construction.

    Questions should be directed to Aimee Heeter at 5-0117 or Rhea Freeman 6-2736.

  1. Budget Alignment and Sufficient Funds Checking:
    The difference between budgeted and actual expenditures should be comparatively small; consequently, budgets should conform as closely as possible to realistic projections of expenditure patterns. Additional funds for chronically overspent lines should be provided through internal reallocations during budget construction rather than waiting until later in the year. The goal should be to allocate funds at appropriate levels during budget construction. This approach will help avoid delays that result when transactions are rejected during sufficient funds checking.

  2.  Budgeting Non-General Fund Accounts:
    Budgeting Non-Recurring Cash: https://fms.iu.edu/afb/wp-content/uploads/2017/02/Budgeting-Non-Recurring-Cash.pdf

Auxiliary account budgets should be realistic and constructed so that the year-end operating margin is breakeven or positive.  Budgeted income should be equal to or greater than budgeted expense and the budgeted expense should include depreciation. Any budgeted loss needs prior approval from the Budgetary Administration and Planning Office.  If you have any questions, please contact Julie Bauters at 5-1126.

The algorithm used for assessment costs are: total credit hours, tenure track FTE, other employee FTE; assignable square footage.  University tax is calculated on the basis of net direct expenditures (3-year average). For FY 2016-17, the University Tax model is frozen based on the net direct expenditures (3-year average) used in FY17.  A new algorithm for university tax assessment is being developed.  The OBAP website (http://www.indiana.edu/~obap/) will be updated by April 2017 with additional details. Costs per Driver will be circulated to all academic units as well as uploaded to the Budget Construction website.
 
 If you have any questions, please contact Aimee Heeter 5-0117.
F. Student Information

All Fund Groups

Academic RC’s are expected to cover the SAA health insurance premium for eligible student academic appointees and fellowship holders who are funded in BOTH general and non-general accounts.  A Campus account will cover the SAA health insurance premium for eligible student academic appointees and fellowship holders paid from GENERAL accounts for Support RC's.  Support RC's must budget funds to cover charges to their applicable NON-GENERAL fund accounts only.  Use object code 5610 for this purpose.  Object Code 5610 will be used for both Fellowships and SAA’s for FY 2016-17. 
The Student Health Insurance Plan is mandatory for all Student Academic Appointees (SAAs) who are appointed at:  (1) 37.5% FTE for the Fall and/or Spring Semesters, and Fellowship Recipients with an award of $3609 or more per semesters for FY 2017-18.  All SAAs and Fellowship Recipients must be enrolled in a minimum of six credit hours or G-901each semester (Summers excluded).  Premiums for SAAs and Fellowship Recipients are fully subsidized by the University or external granting agency.
 
The semester breakdown for FY 2018-19 is:

SAA-FEL 2018-19 Premium Rates
Total
Fall 2018$1,280.73
Spring 2019$1,882.68
Total$3,163.41

All Funds Group
FY 2018-19 minimum rates, $9,625.00 for 10 months (AY) for 0.50 FTE (20 hrs./per week).  If there are changes by the Bloomington Faculty Council (BFC), updates will be sent to all units.

Please direct questions to Aimee Heeter (aheeter@iu.edu).

Matching the Promise
Bicentennial Campaign
Overseas Studies

Budget only if the match begins July 1, 2018 or is currently being matched.  Budget the match from the campus in 9915 negative amount, if you plan to spend the interest income at IUF budget as revenue using object code 1179.   The match funds will be budgeted under object code 9958.

Please direct questions to Aimee Heeter (aheeter@iu.edu).
G. Miscellaneous Information

The fee courtesy file for FY 2018-19 will be posted to the CATS Knowledge Base when available (see link below).  The non-general funds accounts will be charged using object code 9956, sub-object code DFC.  These amounts should be budgeted within the accounts as listed to accommodate the fee courtesy batch billing which will be initiated in August.
 
Go here: http://www.indiana.edu/~cats/kb/D-F/iu-tuition-benefit-for-dependents-nongeneral-accounts_bc.php.

All Fund Groups

Current employees covered by the AFSCME union are entitled to a free EMS permit, or the equivalent value applied towards the purchase of an EMP permit.  To cover this benefit, departments are charged a fee of $142 per AFSCME employee.  The charge is processed once a year, in the Fall, on a service billing document.

All Fund Groups

First-Class letters up to 1 ounce will increase from 49 cents to 50 cents.
Postcard postage will remain at 35 cents.
There may be a variety of rate changes for other mailing services, including standard mail, periodicals, packages, and extra services.
For a complete listing of all the rates in effect, please visit the following link:
http://www.stamps.com/usps/postage-rate-increase/ 

If you have any questions, please contact Mail Services at 855-3503 or iumail@indiana.edu.

All Fund Groups
 
Effective January 1, 2018, all fund groups except 47 accounts are reimbursed at $.545 for the first 500 miles and then $.2725 from mile 501 through 3,000. Mileage reimbursement is capped at 3000 miles.
 
This information can be found at: http://www.indiana.edu/~travel/traveling/travelingbycar.shtml#mileage   
 
Effective May 1, 2011, all 47 accounts are reimbursed at $0.44 for the first 500 miles and then $0.22 from mile 501 through 3,000.
 
See the Travel Management Web Site (http://www.iu.edu/~travel/) for more information.

All Units
All Fund Groups
 
If facility repairs or maintenance are planned for FY 2018-19, they should be budgeted. Funds to cover these costs should be reallocated within your FY 2018-19 available resources. Repairs and maintenance amounting to $75,000 or less need to be budgeted for in object code 4700.  These types of repairs are primarily intended to improve the aesthetic look of space or are “maintenance” of space.  This includes painting a room, small area carpet replacement, replacement of consumables, or localized repartitioning etc.  Note: VPCPF approval of these types of projects is necessary before the project can move forward.

Auxiliary Units Only
Non-General Fund Groups
 
Any auxiliary enterprises and service unit that has primarily funded and/or occupies a significant portion of one or more university owned buildings is required to set aside annually at least 1.25% of the facility replacement value of the building(s) for projects defined as R&R.  Service center accounts have an additional restriction that the amount transferred cannot exceed the annual depreciation amount of the building(s).
 
Detailed schedules will be sent to each campus in March. 
 
Contact Auxiliary Accounting at auxacct@iu.edu with any questions.

All Fund Groups
 
Capital equipment purchases are equipment items with an acquisition value of at least $5,000.00 and a useful life of one year or greater. For equipment meeting these capitalization criteria use the following object codes:
 
7000    Capital Equipment
7015    Computer Equipment
 
Other costs such as installation, freight/shipping, and training should also be capitalized with equipment purchases over $5,000. If the equipment purchased meets the capitalization criteria, then these costs should also be coded to object code 7000 or 7015.
 
Warranties, maintenance agreements and software licenses should NEVER be capitalized with equipment. These purchases should always be expensed to object codes 4776 or 4616.
 
Please refer to Standard Operating Procedure CSOP 8.0 Capitalization of Movable Equipment for detailed guidelines relating to the capitalization of moveable equipment and object code assignment:
https://fms.iu.edu/capital-assets/capital-asset-standard-operating-procedures/csop-80-capitalization-moveable-equipment/.
If you have any questions, please email capasset@iu.edu.

All Fund Groups

You will find the Fire and Casualty Insurance information in the knowledge base of the CATS web site: http://www.indiana.edu/~cats/kb/G-K/insurance-rates-fire-and-casualties_bc.php

All Funds Groups

For FY 2018-19 UITS Rates are not available as of the date of this document, refer to https://uits.iu.edu/page/apjw for viewing the updated rates when available.

General Fund Only

IU maintains full life cycle funding for faculty and staff desktop computers, servers, and peripheral equipment for units supported by general funds. Desktop lifecycle replacement funding should be budgeted using object code 9940, sub object code LCF, rather than 5216 as has been used in prior years.

Operational details in FY 2018-19 will be the same as in FY 2006-07. During FY 2018-19, you will be required to transfer funds from your 10-XXX-98 account into your 92-XXX-98 equipment replacement account either (a) when funds will be spent; or (b) no later than June, regardless whether the funds will be spent before the end of the fiscal year or accumulated for future use. All unspent funds in the equipment replacement accounts will be carried forward to the next year.

If you have questions about this, please contact Aimee Heeter (aheeter@iu.edu).

From I-9/Employment eligibility verification (EEV) and criminal background checks for IU employees must be completed utilizing the web-based enterprise system, GIS.  In addition, criminal background checks are required for some students and volunteers. 
 
Departments are charged for criminal background checks.  The base cost for each criminal background check is $20.00.  The actual cost to the department may be higher due to additional charges, such as ordering an education report, court fees, state required notifications, etc.  Larger units should take this into consideration when formulating their budgets.  The criminal background check includes a criminal history and Sex & Violent Offender registry checks.  The cost of the Form I-9/EEV checks is included in the criminal background check charge.  There is no separate charge for the Form I-9/EEV process 
 
Additional information regarding criminal background checks and the Form I-9/E-Verify process can be found on the UHR website at: https://hr.iu.edu/eev/  
 
In addition to the above, note the policy pertaining to Indiana University programs that involve children:

Continue to budget in the President’s Fund under object code 9977, sub object to be used is PFU.  Note that the amount previously budgeted remains the same for FY 2017-18.

Ask Aimee Heeter (aheeter@iu.edu) if there any questions.

Each unit has the responsibility of providing matching funds for endowed chairs or professorships. Matches must be made on accounts that have received contributions.  In cases of an irrevocable deferred bequest, matching funds will be provided once all signatures are in place and the agreement becomes effective.  Units receive a report from the UBO that provides information about the amount of matching funds that should be budgeted (Object code 9915-PRS and Object code 9915-SCH).  In cases where accompanying funds exist at the foundation, the units will also be apprised of the projected amount of income they may budget in Object code 1179.
H. Documents Needed By Campus Before You’re Done

The “Budget Construction Reference Guide” can be found at the following URL:
https://fms.iu.edu/files/4114/8769/2575/Budget-Construct-KFS-Training-Doc.pdf
 
The “Budget Construction Import Guide” can be found at the following URL:
https://fms.iu.edu/files/9914/0061/4075/Budget-Construction-Import-Guide.pdf
 
The Budget Construction website (Allocation Sheets, Guidelines) can be found at the following URL:  https://apps4.indiana.edu/VPGA_BudgetConstruction_V1_Online/Default.aspx
 
KFS Import Templates: https://fms.iu.edu/training/kuali-financial-system/kfs-templates/
 
Budget Construction Non-Compensation Import Tool: https://fms.iu.edu/afb/wp-content/uploads/2015/12/AFB-Business-Practice_BC-Non-Comp-Import-Tool.pdf 
 
New View/Report Functionality: https://fms.iu.edu/afb/wp-content/uploads/2016/02/AFB-Business-Practice_New-View.Report-Functionality.pdf

Location – Budget Construction Selection Screen, org report/dump, use the Organization Sub-Tree and the Action arrows to locate your school/org.
 
List 2Plg – 2plg is a mechanism that temporarily keeps the account’s budget in balance during salary setting.  Open the account(s) and determine if you need to adjust the budget, and then delete the 2plg entry.  All plg entries must be deleted prior to the RC being pulled up by the campus.
 
Payroll Synchronization Problems – this report reflects instances where information in PeopleSoft no longer agrees with the information in Budget Construction.  Example:  a Maintain Position E-doc processed which changed an attribute of a position already budgeted in BC.

 

  1. For FY 2018-19, please provide a list of your current FY 2017-18 Planned Uses of Reserves for FY 2017-18. For FY 2018-19, you MUST include a narrative related to ALL FUNDS as this will be part of the Trustee’s presentation.
  2. For the FY 2018-19 Budget Narrative include the following:
  1. Address student affordability and debt.
  2. Increase operating efficiencies on both the administrative and academic enterprises. This must include specific operational efficiencies, how they were achieved and the overall impact on the unit base budget.
  3. Mitigate the pressures from our stressed revenue streams.
  4. Details on negative budgets. Please include the account number, account name, object code, sub-object (if applicable) and amount.  In addition, please provide a general description of the purpose and coverage/reduction during FY 2018-19.
  5. Details on Funding expectations related to Grand Challenges and/or Emerging Areas of Research.
  6. Please provide Aimee Heeter (aheeter@iu.edu) with a brief summary of your RC salary-setting strategies and indicate how the strategies align with the goals of Indiana University. An important element in these strategies should be a focus on the distribution of salary increases, particularly for faculty, to show that available dollars are not being spread evenly across all salary lines. University priorities should be addressed in salary decisions, subject to resource availability and, for professional staff, to established salary structures.

All planned uses and narratives should be submitted to Aimee Heeter (aheeter@indiana.edu) by April 19, 2018.

Please provide supporting documentation to Aimee Heeter for any reason codes for professional staff and faculty for any salary increase 8% or above, or for no salary increase.

Deadline for submission of your budget is
Monday, April 16, 2018 (tentative)

Deadline for submission of your RC level narrative is
Thursday, April 19, 2018 (tentative)