Transcript Budget Training The University of Montana 2010/2011

Budget Training
The University of Montana
2010/2011
Session I
The Budget Environment
Course Outline
• The funding foundation
• The process
• Break
• The current situation and the outlook…
Learning Objectives
At the conclusion of this session, you will be able to:
 describe the types of funds utilized by the University, and identify the primary
purpose of each fund
 identify major sources and uses of each fund
 describe the General funds appropriation and allocation processes
 explain the concept of spending authority, and the fiduciary responsibilities at
various levels of delegation
 describe the planning / budget / assessment cycle and associated timelines.
Let’s Start with Fund Accounting.
(Don’t be scared.)
What is a fund?
A fund is an activity or entity separately accounted for – with its
own cash, balance sheet, or income statement
How many different kinds of funds do
we have?
Current
Unrestricted
Funds
• E&G Funds
– General Funds
– Designated
Funds
• Auxiliary Funds
Current
Restricted
Funds
• Grants
• Contracts
• Gifts
Non-Current
Funds
• Plant Funds
• Loan Funds
• Endowment
Funds
• Agency Funds
General Funds
GENERAL FUNDS revenue comes from:
• state appropriations
• millage
• tuition and fees
• investment income
General Funds
Revenue
FY 10
$45,525,726
6,228,129
88,185,331
1,497,938
811,304
Appropriation
Millage
Tuition and Fees
Other OCHE/State Funding
Other
Total
$142,248,428
General Funds
Other OCHE/State
Funding
1,497,938
1%
Other
811,304
1%
State Appropriation
45,525,726
32%
Tuition & Fees
88,185,331
62%
Millage
6,228,129
4%
General Funds
The heart of university financial resources
General Funds support:
• basic teaching, research & public service mission
• academic and administrative support activities
• maintenance and operation of the University and its
academic facilities
General Funds
Examples of General Funds Activities
• Instructional programs
• Library operations
• Business services
• Utilities
General Funds – Uses
Expenditures by Category
Salaries
Benefits
Transfers
Operating Costs
Equipment and Capital
Scholarships and Fellowships
82,272,164
26,863,580
2,644,881
16,366,553
2,377,509
11,723,741
$142,248,428
General Funds – Uses
Equipment and
Capital
2%
Operating Costs
11%
Transfers
2%
Scholarships and
Fellowships
8%
Salaries
59%
Benefits
18%
Designated Funds
DESIGNATED FUNDS revenue comes from:
•
•
•
•
•
Fee-for-service activities
Self-support activities
Entrepreneurial activities
Indirect cost recovery
Investment income
Designated Funds
• Designated for purposes specified by the Board of
Regents or the campus
• Separately classified to accumulate costs or to recharge other funds or accounts
Designated Funds
Examples of Designated funded activities
• Computing & Information Services
• Student Course Fees
• Indirect Cost Recoveries
• Continuing Education
• Sales & Service Accounts
Designated Funds – Uses
Expenditures by Category
Salaries
Benefits
Transfers
Operating Costs
Equipment and Capital
Scholarships and Fellowships
11,591,450
3,947,901
4,633,655
23,754,997
1,656,958
1,361,450
$46,946,411
Designated Funds – Uses
Scholarships and
Fellowships
1,361,450
Equipment and
3%
Capital
1,656,958
3%
Transfers
4,633,655
10%
Salaries
$11,591,450
25%
Operating Costs
23,754,997
51%
Benefits
3,947,901
8%
Auxiliary Funds
AUXILIARY FUNDS revenue comes from:
Primarily student-related
•
•
•
•
Fee-for-service activities
Self-support activities
Entrepreneurial activities and
Investment income
Auxiliary Funds
Examples of Auxiliary Funded Activities
• Residence Halls
• Food Services
• Printing & Graphics Services
• Golf Course
• Campus Recreation Center
Auxiliary Funds – Uses
Expenditures by Category
Salaries
$
Benefits
Transfers
Operating Costs
Equipment and Capital
Scholarships and Fellowships
$
16,224,017
4,974,924
7,598,225
17,468,256
177,365
46,442,787
Auxiliary Funds – Uses
Equipment and
Capital
177,365
0.4%
Transfers
7,598,225
16.4%
Operating Costs
17,468,256
37.6%
Salaries
$16,224,017
34.9%
Benefits
4,974,924
10.7%
Restricted Funds
• Funds which are limited to purposes specified by sources
external to the Board of Regents or the Legislature
• Specific projects or programs, which can only be expended
under the terms of a governmental or private gift, grant or
contract.
Examples of Restricted Funds
• Federal grants and contracts
• Private grants
• Federal financial aid
• Restricted scholarships
• Restricted gifts
Other Fund Types
• Loan Funds
• Plant Funds
• Agency Funds
• Endowment Funds
Fund Integrity
• So, does it really matter what fund gets used
for what?
Really?
Break!
Programs (Functions)
•
•
•
•
•
•
•
•
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
O&M Plant
Scholarships
Programs (Functions)
•
•
•
•
•
•
•
•
Instruction
So… What kinds of expenses are
appropriate for each of these?
Research
Public Service
Academic Support
Student Services
Institutional Support
O&M Plant
Scholarships
Programs (Functions)
•
•
•
•
•
•
•
•
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
O&M Plant
Scholarships
Programs (Functions)
•
•
•
•
•
•
•
•
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
O&M Plant
Scholarships
How much of our budget does
each one represent?
General Funds – by Program
Instruction
Academic Support
Research
Plant
Institutional Support
Public Service
Scholarships
Student Services
69,297,093
17,920,452
1,703,790
16,299,725
14,858,171
1,406,701
11,723,741
9,038,755
$142,248,428
FY10 Budgeted General Funds by
Program
O&M Plant
16,299,725
12%
Institutional
Support
14,858,171
10%
Scholarships &
Fellowships
11,723,741
8%
Student Services
9,038,755
6%
Instruction
69,297,093
49%
Academic Support
17,920,452
13%
Research
1,703,790
Public Service 1%
1,406,701
1%
Program Integrity
• So, again – does it really matter what program
gets charged for what expense?
Really?
General Funds Process
How do general funds end up in your budget?
General Funds Process(es)
Executive
Budget
Proposal
Legislative
Appropriations
Campus /
Unit
Budgeting
“Lump
Sum”
$$$
Allocation
General Funds Process(es)
Executive Budget Proposal
– Present Law Adjustments
– Decision Packages
General Funds Process(es)
Legislative Appropriations
–
–
–
–
–
HB2
HB13
OTO
Special Items
Others…
General Funds Process(es)
“Lump Sum”
General Funds Process(es)
Allocation (OCHE, Regents)
General Funds Process(es)
Campus / Unit Budget Process(es)
Biennial
Annual
Administrative Assessment
• What is it, really?
• Why do it?
• Who determines how much, and how
do they do it?
Planning, Budgeting, and Assessment
The Budgeting Environment
• Where we’ve been…
• The current situation!!!
• The outlook???
Where We’ve Been…
• The 2008/2009 Biennium
– PL & Payplan funded at 85%
– 0% Resident tuition increase, 6.5% Nonresident
– 2.9% Payplan
– Record enrollments (res & nonres)
– No funding for growth
– No base funding for quality or new initiatives
Where We’ve Been…
• The 2010/2011 Biennium
–
–
–
–
–
Appropriation failed to cover PL & Payplan
17.6 million (6.5 million Missoula) is Fed OTO
3% Resident tuition increase, 8.5% Nonresident
No Payplan
Record enrollments (res grew significantly, nonres down
slightly)
– No funding for growth
– Quality, new initiatives funded from nonresident tuition
The Current Situation!!!
• FY10 tuition shortfall of $1.4 million
• FY11 tuition shortfall could exceed $2 million
• Planning for loss of $17.6 million (6.5 million in
Missoula) in 2012/13 Biennium
• Conceptual framework in place
• Detailed planning & implementation will continue
remainder of FY10
A Word (or 2) about Reallocation
(…and the lump)
Total FY Resident FTE Difference
CAP
FY10
from CAP
The University of Montana-Missoula
8,923
9,967
1,044
Montana Tech of the University of Montana
1,725
1,971
246
The University of Montana-Western
909
941
32
UM-Helena College of Technology
731
948
217
The University of Montana
12,288
13,828
1,540
Montana State University-Bozeman
Montana State University-Billings
Montana State University-Northern
MSU-Great Falls College of Technology
Montana State University
8,158
3,912
1,148
1,250
14,468
8,027
3,872
988
1,425
14,312
The Montana University System
26,756
28,140
(131)
(40)
(160)
175
(156)
1,384
The Outlook???
• State revenues down significantly, possibility of
additional State appropriation reductions
• Enrollment prospects uncertain
– Resident FTE and headcount continue to grow despite fewer
MT high school graduates
– Nonresident enrollment more challenging
• Timing of economic recovery hard to project
• Commitment to continued excellence and achievement
of strategic goals is unwavering
Learning Objectives
At the conclusion of this session, you will be able to:
 describe the types of funds utilized by the University, and identify the primary
purpose of each fund
 identify major sources and uses of each fund
 describe the General funds appropriation and allocation processes
 explain the concept of spending authority, and the fiduciary responsibilities at
various levels of delegation
 describe the planning / budget / assessment cycle and associated timelines.
Questions?
Discussion?
Preview of Coming Attractions
Thank you !