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One Way is Not Enough: Multidimensional Financial Management in Continuing Education

One Way is Not Enough: Multidimensional Financial Management in Continuing Education. Presented by Dr. Barbara Audley Executive Director Extended Education and Summer Programs Western Washington University. Management Structure.

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One Way is Not Enough: Multidimensional Financial Management in Continuing Education

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  1. One Way is Not Enough: Multidimensional Financial Management in Continuing Education Presented by Dr. Barbara Audley Executive Director Extended Education and Summer Programs Western Washington University

  2. Management Structure • Person who can focus on the over-all financial health of the organization • Professional accountant • Experience at a high enough level to understand the over-all operation • Auditing view

  3. A Short Accounting Lesson • Fund Accounting • A beginning balance --New expenditures + New Revenue -- An Ending Balance

  4. And… • Enterprise Accounting + Revenue - Expense Net Balance (+/-)

  5. So… • Live in the Fund World • Do Business in the Enterprise World

  6. Rule-Makers • AICPA • NACUBO • WACS • University Policies

  7. Enterprise Systems • Banner • PeopleWare • SAP

  8. Challenges • 2 Systems of Record-keeping • 4 Systems of Rule-making • An institutional computer system focused on one system of record-keeping • Financial viability requiring the alternate system • A lack of understanding of the need to know in a different format

  9. How to Proceed • Always balance to the University’s accounts • Design reports to meet your needs • Develop consistent procedures to report data • Customize reports to management and program needs

  10. EESP’s System • Summary of Funds in Fund Accounting Terms • Beginning balance • Revenue • Expenses • Ending Balance • Monthly

  11. Sample Report

  12. Program Reports • By program/site • By programs of the same type • e.g., Elementary Education • Non-credit certificates • By sponsor • e.g. College of Education • Continuing and Independent Learning

  13. Sample Report

  14. Some Highlights • Annual Budget • EESP Share off the top • Monthly activity and year-to-date • Semi-annual re-evaluation after December closes

  15. Annual Budget • Based on enrollment projections—conservative • Based on prior year expenditures—add inflation • Adjusted for any forecasted major changes • 5% contingency

  16. Annual Budget Sample Report

  17. Program-specific Reports • One site/multiple programs • One program/multiple sites

  18. Program-specific Reports (sample)

  19. Overhead Accounts • Segregate EESP costs from program costs • Transfer revenue from programs to overhead costs

  20. Revenue-Sharing • EESP charges a support fee to co-sponsored programs • Zero out at year end • Various models: • 20% of gross revenue • Sliding scale based on enrollment • 15% of gross revenue • Negotiated • Based on services provided

  21. Program Reserves • Program Reserve • Program Development Reserve – new projects • Disability Reserve –

  22. Management Strategies • Programs evaluated based on current year activities only • Ending balances transferred to reserve accounts

  23. Enrollment Reports • Show problems at beginning of cycle • Provide picture of whole operation • Identify trends before financial impacts obvious • Identify gaps in services • Quarterly with comparisons and annual total

  24. Enrollment Reports (sample 1)

  25. Enrollment Reports (sample 2)

  26. Forecasting • A work in progress • Students do what they will • A mature structure • Challenge: to determine revenues necessary to cover existing costs • Turn into data that non-financial program managers can use and implement

  27. Break Even Analysis

  28. The Next Step • Trend analysis useful here • Over time what is the average credits per student enrollment for each program, each site • Again, information in a form non-financial managers can use • Builds in student behavior

  29. Questions?

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