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The University of Montana

The University of Montana. Preparing Designated/Auxiliary FY11 Operating Plans. Learning Objectives. Understand the general function and unique characteristics of designated/auxiliary funds Ascertain why operating plans are important and the role they play in budget preparation.

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The University of Montana

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  1. The University of Montana Preparing Designated/Auxiliary FY11 Operating Plans

  2. Learning Objectives • Understand the general function and unique characteristics of designated/auxiliary funds • Ascertain why operating plans are important and the role they play in budget preparation. • Identify methods to collect relative information for an operating plan • Identify acceptable practices of managing fund balance • Write a thorough/functional plan in the established format • Communicate the operating plan to various audiences

  3. Why Are We Here…? • Continued need for a consistent planning process • New training approach • Introduction of process for new employees • Enhanced operating plans • New requirement

  4. Why Write a Plan?

  5. Why Write a Plan? • Proactive management tool • Communication • Document assumptions, issues and concerns • Source document for budgets • President and Vice President approval of plan provides direction for the budget

  6. Designated Funds • Designated for purposes specified by the Board of Regents or the campus • Account for entrepreneurial and support activities • Separately classified to accumulate direct costs and revenues – self-funded

  7. Examples of Designated Funds • Student Course Fees • Sales & Service Accounts • Self-support Activities • Lab Fees • SPABA

  8. Auxiliary Funds Primarily student-related • Fee-for-service activities • Self-support activities • Entrepreneurial activities and • Investment income

  9. Examples of Auxiliary Funds • Residence Halls • Food Services • Printing & Graphics Services • Golf Course • Campus Recreation Center

  10. Process Overview • Planning • Budget Preparation • Assessment • Budget Modification

  11. Process Overview Plan Assess Budget

  12. Operating Plan • What we’re looking for • A written document to describe a unit’s operating conditions and planning assumptions • Uses factual references whenever possible • Makes assumptions and logic explicit • Informs Directors and Deans of current issues and trends that may impact the unit • Establishes and requests concurrence on goals, priorities, and strategies • A plan of one-year temporal scope, at a level to inform budget decisions

  13. Operating Plan • What we’re NOT looking for • A strategic plan • A written form of a detailed budget by index code • A vague narrative that fails to inform decisions • A ”make-work” document

  14. Operating Plan • Tools • Operating Plan from previous fiscal year • Quarterly Performance Report, Data Warehouse and Banner reports • Communication • Revenue and Expense Models • Other relevant planning documents

  15. Historical Information

  16. Pivot Tables

  17. Pivot Tables

  18. Pivot Tables

  19. Pivot Tables • To create a Pivot Table in Excel: • Highlight the Data • Choose Insert • Pivot Table

  20. Pivot Tables Pivot tables are super!

  21. Pivot Tables

  22. Communication

  23. Operating Plan • Revenue and Expense Modeling • SPABA Allocation from prior year • Fee or other income data from recent years • Payroll Projections – employee roster, payplan assumptions • Capital Projects and Purchases • Debt Burden Schedule • Historical Data

  24. SPABA Revenue Estimating SPABA revenue to complete the operating plan and budget.

  25. SPABA Revenue

  26. Payroll Expense Model

  27. Operating Plan • Other Planning Tools • Contracts • Professional Journals and Organizations • Current Events • OPBA Assumptions Package

  28. Operating Plan • Forms • FY11 Operating Plan Template

  29. Forms Background: Describe the operation Describe its history Explain the nature of its business activities

  30. Forms Revenue Assumptions & Projections: • Specify revenue sources and amounts • Address the timing of revenue • Explain anticipated changes

  31. Forms Expenditure Assumptions and Projections: • Outline expenses • Explain anticipated changes

  32. Forms Fund Balance and Capital Plan: • address strategy regarding fund balance • estimate beginning fund balance • project revenue (from previous exercise) • project expense (from previous exercise) • project ending fund balance

  33. Forms Management Issues, Trends, Significant Events Discuss significant issues, trends and events expected to impact the operating unit.

  34. Forms Specify Goals: Long range, broad and serve to set direction or to provide a relative target or accomplishment or growth Initiatives: New efforts, intended to begin implementation within this planning period. Objectives: more specific than goals, they are achievable, measurable and verifiable

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