CAHSS Budget Presentation

1. CAHSS Budget Presentation • Audience: • Department chairs and coordinators • Content: • College budgetary reporting • Overview: • Budget projections are submitted using a “MBU Rev-Exp” spreadsheet • A review of the MBU spreadsheet follows December 8, 2011 CAHSS budget presentation to department chairs & coordinators by Gina Pierce, Budget Analyst

2. MBU Rev-Exp Spreadsheet : • What it is • Why we complete it • Where the data comes from • What it contains • How often we update it

3. Keeping it simple….Brief Summary • A spreadsheet designed for OAA use, required by the provost • To allow for consistent reporting by all Major Business Units (MBU) • OAA uses it to track and project budget & expenditures; it is a ‘thermometer’ of our budget position • What is it? • Why complete it? • Who uses it?

4. Brief Summary continued… • Revenue (Budget) and Expense projections reported in various broad categories • First draft is reported in January of the prior academic year. Updated in October, March, May, with final after the year closes. • What it contains: • How often updated:

5. Format of the Spreadsheet • Total Salaries • Benefits • OE • Communications • Travel • Library Acquisition • Contract Services • Info Tech Costs • Equipment • Misc OE • Total OE • Total • Consists of column headings for: • Salaries • Perm faculty & DC • FERP • Lecturers • TA’s • GA’s • Staff • MPP’s • Student Assistants • Work Study

6. Page 1…Spreadsheet Revenue Categories • Original Budget Allocations • Roll Forward • Budget Reductions • Salary & Benefit Increases • Encumbrance Budgets • Readjustment of Allocations • Reimbursements • Augmentations • R/RS Revenue • Vacant Position Transfers

7. Page 2…Spreadsheet Expense Categories • Major categories: • Department/Program Expenses • R/RS Expenses • Contingencies • Cost Recovery • Last row contains the balances of all categories (revenue – expense)

8. Step-by-step reviewRevenue • Original Budget Allocation • Information is distributed from the budget office to the director of academic resources, who forwards to the divisional budget analysts • Divided into various salary, benefits, and OE categories • Includes changes to position inventory, benefits, shifts in departments • This is our base budget allocation

9. Step-by-step reviewRevenue • Roll Forward: • Distributed from the University Budget Office • Excess budget approved by the provost or overspent budget balances are ‘rolled’ into the next academic year • NOTE: Excess budget is often scooped and not guaranteed to roll • Overspending results in offset against next academic year’s budget

10. Step-by-step reviewRevenue • Budget Reductions • If budget reduction to base were required, this line would show which categories were affected by the reduction • Types of reductions: • Reduction to base budget. This line is for reductions that have not yet been applied to base budget but are expected. • Examples for 2011/12: reduction for TFD’s Graduate program phase out and reduction due to ITS reorganization.

11. Step-by-step reviewRevenue • Salary & Benefit Increases: • Examples: • Funding for faculty promotions • FERP settlement pay-outs

12. Step-by-step reviewRevenue • Encumbrance Budget: • Distributed from the University Budget Office • Encumbrances are unfilled orders – i.e.: a purchase requisition was placed in the prior year and not yet expensed. • The encumbrances move the budget forward; they will count against prior years budget when they post

13. Step-by-step reviewRevenue • Readjustment of Allocations • This line is used to move budget between categories so there is enough budget to cover projected expenses by category. • Examples: • Move funds from faculty funding to cover chair stipend costs (moves from faculty to staff) • Move Supplies & Services budget to cover communications, student assistant, equipment (computer refresh), travel

14. Step-by-step reviewRevenue • Reimbursements • Specific types of expected revenue listed in this section. • Information comes from the OAA, other college offices, and department coordinators (the assigned time information) • Categories include: • Faculty Governance • Sabbaticals • CMC Release Time • CFA Representation; Statewide Senate representation • Other Colleges reimbursement for use of our faculty

15. Step-by-step reviewRevenue • Augmentations • Funding from the president or provost that is given on a one-time basis to supplement the base budget • Examples: • TFD Graduate program. In 2011/12 a reduction to base budget of $134,000 was taken due to program reduction. To help with the program phase-out year, a $134,000 augment from the provost was provided. • First Street Gallery receives a $24,000 augment to its base budget.

16. Step-by-step reviewRevenue • R/RS Revenue • This section shows projected revenue fee programs; various R and RS program codes • In mid-year updates we use it to show: • GWPE: projected earnings above base budget • MSF: projected revenue above base budget • In the year-end budget update, actual R/RS Revenue is reflected in this section (since actual revenue is known at year-end)

17. Step-by-step reviewRevenue • Vacant Position Transfers • Changes to positions that are not accurately reflected in the position inventory. • Examples: • New faculty: OAA funds difference between vacant rate salary & benefit funding and new faculty rate • New FERP Faculty: Half of the faculty’s position funding moves to vacant rate; OAA scoops difference between the half-time faculty rate and vacant rate.

18. Step-by-step reviewRevenue • Cost Recovery • This line is used to show revenue from grants and contracts • Information about grants and contracts should come to the College office • For 2011/12, cost recovery from two grants are reflected in this section

19. Step-by-step reviewExpense • Department/Program Expenses • This information is compiled in the college office from various sources • Salary & Benefit projections: scheduling worksheets, position inventory data, & other material are referenced when projecting per department expenses • Departmental OE expense projection includes encumbrance & roll forward budgets and is based on several factors, including: • Current budget allocation • Historical costs • Projected costs

20. Step-by-step reviewExpense • R/RS Expenses • This information comes from the college office • During yearly updates, this section projects mainly: • GWPE (RS002) expenditures • MSF Fee expenditures (RS064) • Expenditures equal to all other R/RS balances • During year-end updates, this sections includes ALL R/RS codes and the expenditures equal account balances. • Since R/RS balances will roll, for the purposes of this report they are considered expended so that their balance will not affect our bottom line projection.

21. Step-by-step reviewExpense • Contingencies • We use this section to report: • Reserve budget:$80,000 • To help curb historical deficit spending • Sick Leave Replacement budget: $75,000 • As funds are committed, the cost is reflected in the department expenses • Dean’s Discretionary budget: $30,000 • As funds are committed, the cost is reflected in the department expenses

22. Step-by-step reviewExpense • Cost Recovery • This line is used to show revenue from grants and contracts as abatements (negative expenses) • When a grant is billed, the revenue is posted as an abatement to offset the cost of the faculty • This section is not used in this spreadsheet.

23. Step-by-step reviewBalance • The final row on the spreadsheet is “balance” • This row subtracts projected expenses from projected revenue per category • The far right column, “Total,” reflects any projected excess or deficit as a result of the proposed budget • NOTE that benefit costs are not the college’s responsibility to cover; therefore any excess or deficit in the benefit category should be removed from the total.

24. Ending Summary Budget Reporting • Is required by the Provost • Uses MBU spreadsheet which allows for consistent reporting by divisions • Is used as a ‘thermometer’ of our budget position • Reports revenue & expenditures by category • Is updated about 4 times per year