Budget Overview Kathy Qualls Sr. Vice Provost for

Transcript:Budget Overview Kathy Qualls Sr. Vice Provost for:
Budget Overview Kathy Qualls Sr. Vice Provost for Academic Finance and Administration Goals Help you understand the larger University Budgeting Process Discuss PBB Talk about local budget responsibilities and share some concepts that may help you manage your budget Mission Vision Strategic Plan Long Range Forecast Operational Plan Annual Budgets Annual Budgets Operating Budget - current revenues and expenses Capital Budget - major equipment, renovation, and/or new construction How Budgets are Built Bottom Up vs. Top Down Zero Based/Modified Zero Based Formula Incremental Performance Based Incremental at UC Determine changes to prior year actuals Include estimates for revenue increases or decreases Tuition increase or decrease Reduction or increase in state support Increase or decrease in tuition discount (scholarship) Includes estimates for expense increases or decreases Mandatory increases, utilities, new leases (U Square), debt funding, athletics, diversity initiatives, strategic initiatives, academic support Incremental at UC Calculate all the changes Nets to a positive or a negative Distribute the positive (only in theory) Collect the negative (a re-allocation or a cut) Incremental at UC Budget vetted with University governing groups Deans asked to begin planning on how to manage the threshold amount College and Unit Budget Presentations to VPs VP area Presentations to the President Other Budget Drivers Direct and Indirect or Central vs. Local Enrollment Tuition/Fee Rate Increases Tuition Discount Rate/ Scholarships External (State) Funding Endowment Spending Rate Annual (Unrestricted) Contributions Payroll/ Fringe Benefits Faculty Teaching Load Faculty to Student Ratio Debt Service Maintenance Expenses/Utility Costs Technology Auxiliary Enterprises Depreciation Indirect Cost Recovery Other Budget Drivers Direct and Indirect or Central vs. Local Budget Officer Goals Institution has a balanced budget – revenues are equal to or greater than expenses Resources are allocated in the budget for accomplishing strategic initiatives Projected rates of change in revenues and expenses are approximately the same – close matters Endowment use is limited to preserve purchasing power – consider the future Budget must provide for renewal and replacement of physical plant and equipment Old Budget Process – Pre PBB Colleges Projected Student Enrollment – IEP Process Budget Office used projections to estimate revenue Estimated budget expense needs (re-allocation) developed Assigned cuts based on the gap of revenue to expense How the cut actually worked Cut (even when it was a re-allocation) amount was Assigned across the board As a percent of base budget All colleges and units treated the same – reduce the budget Salary