Governance & Budgeting

1. Governance & Budgeting Local WCC Leadership Development Program OCTOBER 22, 2010

2. Outline • Budgeting regulations • Statutes • Administrative code • Annual state budget planning • Budget retreats • Interim/monthly planning/analysis • Local budget development/analysis • Capital budget planning/issues

3. Community College Law • NCGS 115D • Article 2A – Privacy of Personnel Records • Article 3 – Financial Support • 115D-31 – State Financial Support • 115D-32 – Local Support • Article 4A – Budgeting, Accounting & Fiscal Management • Administrative Code • Title 23 – Department of Community Colleges

4. NCGS 115D-31State Financial Support • Furniture, Equipment & Books • Current Operating Expenses • General administration • Instructional services • Support services

5. NCGS 115D-32Local Support • Plant fund • Acquisition of land, construction/additions to buildings, motor vehicles • Current expenses • Custodial/maintenance • Utilities • Vehicle operation • Support services • Insurance for buildings & contents • Workers compensation insurance for institutional employees • Legal fees

6. WCC Source of Funds

7. WCC Expenditures

8. NCGS 115D Article 4ABudget, Accounting & Fiscal Management • Preparation & submission of institutional budget (115D-54) • State current fund, county current fund, institutional fund, plant fund • Budget management (115D-55) • County approval • SBCC approval • Right to review books, records & reports

9. NCGS 115D Article 4ABudget, Accounting & Fiscal Management • Interim budget (115D-57) • Amendments to budget; budget transfers (115D-58) • Budget transfers must be approved by the NCCCS and local trustees • Federal contracts & grants (115D-58.1) • Permits local trustees to apply for and accept grants from the federal government or any agency thereof

10. State Budget Planning • Budget planning for the coming fiscal year begins as soon as spring semester enrollments can be estimated • Input from the annual performance enhancement plan process is woven into departmental budget requests • Annual planning retreat is held in June • Macro issues are identified and tied to college mission • Review of year-to-date expenditures and salary data • Review of FTE trends and budget projections

11. State Budget Planning • Annual planning retreat – continued • Presentation of position requests and initial requests for operating and equipment funds • Also review of county and institutional funds • If enough data is available, initial decisions are made concerning new positions and other time-sensitive issues

16. State Budget Planning • Final budgets are negotiated after the legislative budget process is complete and WCC receives its annual budget • Collaborative process at WCC • Shared with faculty/staff • Minor adjustments are made monthly • Mid-Year budget retreat in February • Review projections for coming year • Funds are re-allocated based on changing priorities

19. State Budget Planning • Constant budget/cash review during the last quarter of the fiscal year • Adjustments made to spend funds that cannot carryover

20. FTE Calculations • FTE is a measure of student contact hours • One curriculum FTE = 512 student contact hours • 32 contact hours per week = 1 FTE • Incremental curriculum FTE = $3,150.86 • One occupational extension FTE = 688 student contact hours • Incremental occupational FTE = $2,273.31

21. Formula Budget Information • Instructional ratios <500 FTE 16.538 to 1 >500 FTE 22.012 to 1 Other costs allotment $178.50 per FTE • Base allotment $2,035,820 • Enrollment allotment $1,647 per FTE above 750

28. Budget ManagementMonthly Reporting • Monthly budget reports are submitted to Administrative Council • Includes summary state budget and departmental detail • Other reports are submitted as requested/necessary • Departments have access to budget reporting through WebAdvisor. Business office can provide additional reports as requested.

35. State Budget Issues • Faculty/staff salary competitiveness • Management flexibility reductions • Reduced state budgets • Equipment funding • Enrollment growth funds • Weighted funding for high-cost programs • Health sciences • Technical programs

36. County Budget Planning • County budget requests are submitted around April 15 • Much of the county budgets consists of fixed costs (utilities, maintenance/custodial salaries/supplies) • Internal planning to determine annual repair/renovation needs and other non-routine costs (vehicle replacements, grounds upgrades, etc.)

39. County Budget Planning • County budgets are generally approved by the respective commissioner groups in June • County budgets must also be approved by the WCC trustees and submitted to the NCCCS

41. County Budget Issues • Adequate funding for new facilities and renovations • Adequate funding for ongoing support of new and existing facilities • Adequate funding for maintenance of aging facilities • Local salary supplement parity with public schools

42. Capital Projects • By statute, counties are responsible for community college facilities • State has provided bond financing for capital construction and renovations on several occasions • WCC Endowment Corp has provided significant funding for WCC facilities

43. Capital Projects • Changing landscape for capital project funding • Economic climate: • Severe impact on traditional and potential donors • Less cash flow from other fundraising activities • No borrowing capacity/appetite for the state or counties • Increased facility demands due to enrollment increases and aging buildings

45. Questions?