Budget Control Officers Meeting

1. Budget Control Officers Meeting October 31, 2013 ATC Auditorium 3:30 p.m. – 5:00 p.m.

2. Agenda • Welcome & Updates – President Ender • 2012-13 Audit/Budget Results – Jim Peterson • 2014-15 Budget Timeline & Online Forms – Jim Peterson • 2013-14 Mid Year & Beyond – Lisa Freiburger • IT Projects & Budgets – Darcy Swope • Department Planning Update – Donna Kragt • GRCC ePrint – Danelle Sedore • Globally Harmonized System – Mansfield Matthewson • Campus Construction Update – Vicki Janowiak • Questions & Wrap Up

3. 2012-13 Audit/Budget Results • Unmodified or “clean” audit opinion • No management letter comments (4th year in a row!) • Summary of General Fund: * Includes $1.5 million transfer to Plant for future facility needs.

4. 2012-13 Audit/Budget Results Revenue Variances:

5. 2012-13 Audit/Budget Results BCO Controllable Expense Variances: Overall, 98.2% of the authorized GF budget was utilized.

6. 2012-13 Audit/Budget Results BCO Controllable Expense Variances: *includes 9 overspent by less than $1,000 Continued Good Work by All of You! Thanks

7. 2014-15 Budget Development • 2014-15 Budget Timeline – Key BCO dates: • 12/3/13: 2013-14 mid year requests due via on-line submission** • 1/23/14: IT project requests due on-line (Darcy to address) • 1/24/14: Department planning, budgeting & space planning overview • 2/21/14: 2014-14 department plans, budget requests and space requests due via on-line submission **Mid year criteria will be the same as in 2012-13. On-line forms are now available in PeopleSoft.

8. 2013-14 Mid Year & Beyond Lisa Freiburger

9. 2013-14 Mid Year & Beyond • 2013-14 Balanced budget adopted by BOT in June • Total Revenues $106,742,766 • Total Expenditures & Transfers $106,742,766 • Change in Net Assets (maintains 10%) $0 • Budget assumptions include: • Decreased enrollment – projected 3% decline • Flat property tax revenue • 1.5% increase in state funding • 3.5% increase in health caps, MPSERS rate increase from 24.32% to 24.79%, and $750,000 for estimated ACA cost • Approximately $1.6 million in new cost savings (see next slide)

10. 2013-14 Mid Year & Beyond • Cost savings (cont’d): • Reduction in the GF allocation for deferred maintenance and IT infrastructure - $1,000,000 • Reduction in bad debt expense, primarily Title IV returns - $225,000 • Elimination of GF subsidy for Training Solutions - $115,000 • Reduction in debt service due to bond refunding - $81,000 • Reduced operating expense at the Ottawa M-Tec due to outsourcing by the OAISD - $80,000 • Closure of the West Side LC - $67,000 Total reductions for 2013-14 = $1,568,000

11. 2013-14 Mid Year & Beyond • Concerns for mid year and beyond: • Enrollment – Late summer 2013 and Fall 2013 enrollment is running 4.8% below budget. The annualized financial net financial impact is approximately $1 million. • Pressure on future tuition increases • Ultimate impact of the ACA when fully implemented • Cost containment/new revenue efforts in progress: • Third-party steam purchase • Electronic vendor payments • On-line student billing • Work of the Budget Review Team

12. IT Projects and Budgets Darcy Swope

13. Project Funding and Resources Resources (People Power) Budget $$$ Expenses Prevents: Funds expended*, no resources available to implement *Software, Contracts, Hardware, Maintenance agreements Match

14. Estimate before Budget Goal: Provide estimate of cost and resources before budgets are submitted by eBCO

15. Optimistic Calendar Jan 24 Project requests due to IT (via web-form) Feb 17 Project/time estimates completed and returned to customer Feb 21 Budget requests due to supervisor Feb 25 2/25 – Projects Prioritized 2/28 – Prioritized Project List sent to eBCOs Feb 28

16. Department Planning Update Donna Kragt

17. GRCC ePrint Danelle Sedore http://cms.grcc.edu/grcceprint

18. Globally Harmonized System of Classification Mansfield Matthewson

19. Globally Harmonized System of Classification and Labeling of Chemicals (GHS) The OSHA Hazard Communication Standard (HCS) is now aligned with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). This update to the Hazard Communication Standard (HCS) provides a common and coherent approach to classifying chemicals and communicating hazard information on labels and safety data sheets. The revised MIOSHA Part 42, 92, & 430 Hazard Communication standard will improve the quality and consistency of hazard information in the workplace, making it safer for workers by providing easily understandable information on appropriate handling and safe use of hazardous chemicals.

20. HCS Mandatory Bb Training • Three (3) training segment modules (10 to 15 minutes each): Module 1: Overview and Classification Module 2: Labels Module 3: Safety Data Sheets (SDSs) (formerly MSDS) • Post test (approximately 20 questions, 80 % accuracy required) • Must be completed by all employees by Friday, November 22, 2013.

24. Campus Construction Update Vicki Janowiak

26. Construction Update • Winter 2014 • ATC • SICE and CIS offices, computer classrooms, computer lab, classrooms • Auditorium • FSU offices • SWD Associate Deans offices • Spring/Summer 2014 • ATC • SICE kitchens, classrooms, Heritage, Banquet rooms, Art & Bev’s • Machine Tool/HVAC wing, plastics labs • FSU computer classrooms • Atrium & skylight

27. Construction Update • Summer 2014 • Cook Hall – Phase 2 • Floors 2 & 3 – Complete demo an reno • Elevators & windows • Main Building – Phase 2 • HVAC, fire suppression, lighting, windows • 4th floor, 1st floor, G2 and classrooms on G1 • Elevators • Sneden • HVAC, windows/exterior, elevator, lighting • LRC • HVAC, Windows/Exterior, Fire Suppression, Elevators, Lighting

28. Questions?

29. Thanks for Attending!