Fringe accountability for general use funds
Beginning in FY 2021, units manage their general use funds with an overall target to include fringes. The budget system, Planning and Budgeting Cloud Services (PBCS), applies fringe budgets to the positions based on defined calculations plus demographic information of the employee. Fringe budgets associated with pools are based on defined calculations.
Unit might continue to see incremental fringe adjustments to their overall target for cases such as:
- New positions provided by the Provost’s Office. For instance,
- New positions approved as a Provost Commitment
- Other Provost Commitments
- Changes in the basic fringe rate. For instance
- Health Insurance
- If the health insurance rate goes up by 3%, the portion of your GU fringe budget dedicated for health insurance will be increased by 3%.
- The year-to-year adjustment in subsequent years has been factored into the fringe base.
- Other fringe rates – which may vary from year-to-year
- Health Insurance
- Temporary commitments funded by the Provost
- Bridging commitments
- Instructional back-stop
Conditions when fringe costs will impact a unit’s projected need:
- Unit-initiated changes in categories from low cost fringe to higher cost fringe
- Increase in KPERS enrollment
- GTA or Student Hourly to either University Support Staff or Unclassified
- OOE to either University Support Staff or Unclassified
- Phased Retirement Agreements – which incur a higher than average fringe rate.
- Faculty on reduced phased agreements incur an employer expense for retirement based on their full-time equivalent rate (17% for a half-time appointment compared to 8.5% for 100%).
- Health Insurance contributions for faculty on phased retirement agreements are made as if the employee were appointed full-time.
- Salary expenditures exceeding 100% of the salary budget.
- Salary over-runs due to permanent commitments that are not base-funded
Year-End Settle-Up Process
A process whereby each ARSP’s prior year expenditures from general use funds are compared to budget allocations, and funds are added or subtracted from the current year.
Except for extraordinary circumstances, any unspent GU funds from 003 or 099 can be carried forward to the next year – and any over-spent amounts will need to be covered with funding from the next year. The net amount of unspent funds will be returned to a cost center (15159XX) that belongs to a central ARSP. The practice among the various deans and vice provosts “to settle up” under-spending or over-spending at the departmental level varies. Therefore, individual departments need to make prior arrangements within the administrative structure for carry forward of unspent amounts.
For other General Use funds:
09x – Differential tuition balances are carried forward to a cost center (15159XX) that belongs to a central ARSP. The carry forward for these funds is based on the amount carried into the prior year carry; plus cash receipts in the prior year; minus expenditures made in the prior year.
Restricted Use Funds:
Carry forwards are routinely made as part of the process to close the previous year and open the next year. Ordinarily, intervention by the Budget Office is not necessary. The carry forward for these funds is based on the amount carried into the prior year carry; plus cash receipts in the prior year; minus expenditures made in the prior year.