CSU Operating Fund Benefit Budgeting Examples

 

Situation #1: Moving Non-Salary Dollars into Salary Accounts

Generally, benefit funding must be provided whenever a Salary & Wages (S&W) budget is increased and the source is a non-salary (OE&E) budget. Examples include:

  • Department creates a new position that was not initially budgeted
  • A vacant position is being recruited at a higher salary
  • A division-funded salary increase was awarded (i.e., outside of the comprehensive university compensation program)

Using the current budgeted benefit rate, the Budget Office will increase the University Benefits Pool budget and reduce a department's Operating Expenses & Equipment (OE&E) budget.

Exception: No benefit funding is required if you are moving budget into Salary & Wages (S&W) for student assistants, overtime, temporary help, shift differential, graduate assistants, and teaching associates. These groups have minimal or no staff benefits costs.

Situation #2: Moving Salary Dollars into Non-Salary Accounts

If, after fully funding all permanent positions, there is an excess budget in Salary & Wages (S&W), this excess budgeted amount may be transferred into an Operating Expenses & Equipment (OE&E) budget. At that time, funds from the university-wide staff benefits pool would be added back to your Operating Expenses & Equipment (OE&E) budget, increasing the department's base budget. This adjustment is made when the initial base budget is submitted at the beginning of each fiscal year.

 Situation #3: Year-End

If at the close of the fiscal year there is an overall deficit in a division's Salary & Wages (S&W) accounts, the Budget Office will request benefit funds be provided to the University Benefit Pool. The division's Operating Expenses & Equipment (OE&E) budget will be decreased by the current applicable benefit rate and the University Benefits Pool will be increased by that same amount.