UCS Toolkit - Budgeting Tips

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BUDGETING TIPS

How a department handles its budget and the role a UCS/UCM plays in the budget process varies greatly from one department to another. Rather than reinvent the wheel, ask if your department or your predecessor had a budget model in place. In the event that no model exists, a good reference point would be the invoices from the previous year or two.

When dealing with hardware, a proactive approach will not only make your life easier, it will keep users and department heads happy. A good rule of thumb is to have some kind of replacement schedule in place for your equipment. Determine a reasonable lifecycle for your equipment, and budget to replace as many systems as you need each year to replace them all over the course of the lifecycle. Warranty periods, frequency and type of use, and vendor support for both hardware and software should all be considered when determining an appropriate lifecycle. Scheduled bulk replacements will also allow you to take advantage of volume discounts from vendors instead of being locked into the unit price for single purchases.

Some questions you'll want answered about your budget might be:

Is there a dedicated IT budget or is it just part of the general operating budget?
If it is not dedicated, is there a predetermined percentage dedicated to IT, or is it just used as needed?
Will you be responsible for generating requistions in RIAS, or will you submit them to someone else to generate the requisition?
If you have an IT budget, what is and isn't included? Does it only include equipment, software, etc., or does it also include office supplies, staff, training, transportation expenses (if applicable), etc.?
Are any funds already committed to specific annual expenses?
Does the budget come from State funds, from a cost recovery account ("auxiliary services"), or from a grant (see below)?

If all or part of your budget is funded via grants, there are some things you need to know. Be sure to read the terms outlined in the grant carefully and thoroughly; not all grants are created equal. What some grants may allow, others may not, and the expenditures of funds are normally specified in great detail. Look at the life of the grant. See if there are stipulations regarding vendors and resellers. Hardware, some software, and some services can be purchased internally from other departments. These departments may have a slight markup to cover costs, which could conflict with grants requiring you to purchase directly from the vendor. If your faculty members are writing grant proposals, make sure they include administrative costs such as equipment purchases, maintenance and upgrades, staffing, and travel expenses (if applicable).