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General Budget Orientation and Discussion. Mr. Gavin Leach, Vice President for Finance and Administration. Fund Types. Current funds (Operating) General fund Designated fund Auxiliary fund Expendable restricted fund Non-current funds (Non-operating) Student loan fund Endowment fund

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general budget orientation and discussion

General Budget Orientationand Discussion

Mr. Gavin Leach, Vice President for Finance and Administration

slide2

Fund Types

  • Current funds (Operating)
    • General fund
    • Designated fund
    • Auxiliary fund
    • Expendable restricted fund
  • Non-current funds (Non-operating)
    • Student loan fund
    • Endowment fund
    • Plant fund
    • Insurance fund
    • Agency fund
slide3

Current Fund (Operating) Activities

  • General Fund
    • Academic and instructional programs and their administration – programs primarily supported by appropriation, tuition and fees, indirect cost recoveries, investment income, and incidental revenues of departments
    • Base budget
      • Recurring budget line items such as personnel, supplies, equipment, utilities, debt service, and other related expenditures
    • Designated and carryover budget
      • University funds remaining from the prior fiscal year. These funds include amounts contractually committed (i.e., purchase orders issued, unspent faculty contractual travel funds), general operating reserves, and departmental operating carry-over balances.
  • Designated Fund
    • Operations that generate revenues for specific purposes that are not restricted by donors, supporting agencies, or patrons – generate revenue to support their ongoing operations but may receive some general fund support and also include departmental equipment reserves
    • Major operations include: intercollegiate athletics, Superior Dome operations, Berry Events Center, recreational services, telephone systems, NMU Foundation support, printing services, etc.
slide4

Current Fund (Operating) Activities (continued)

  • Auxiliary Activities Fund
    • Activities of revenue-producing, self-supporting activities that perform a service for, but are not themselves educational and general activities, and do not receive state support
    • Major operations include: Residence Life, Dining Services, Bookstore, University Center operations, and the Health Center
    • Recurring budget line items such as personnel, supplies, equipment, utilities, debt service, and other related expenditures
  • Expendable Restricted Fund
    • Funds that are restricted for specific purposes stated by the supporting agencies or donors
    • Primary funding sources include federal financial aid, private scholarships, and federal, state, and local grants
slide5

Non-current Fund Activities

  • Student Loan Fund
    • Maintained to account for loans to students of the institution
  • Endowment Fund
    • Maintained to account for money or investments received for endowments where donor has specified that the principal may not be expended, term endowments (donor specified period to hold principal), and funds functioning as endowment (donor did not require funds be held in perpetuity, but governing board has decided to treat as endowment)
  • Plant Fund
    • Funds held to account for: the acquisition of physical properties to be used for institutional purposes, renewal and replacement of institutional properties, retirement of indebtedness of institutional properties, and funds expended and invested in institutional plant properties
  • Insurance Fund
    • Funds held to account for institution’s employee insurance and institutional physical plant and liability insurance programs
  • Agency Fund
    • Funds received by the institution to be held or disbursed only on the instruction or behalf of the person or organization from whom they are received – custodial funds (i.e., amounts withheld for taxes, social security, insurance, etc.)
slide6

NMU Total Resources Operating Budget

Total = $165.9 million

Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and Fees, Dining Revenues, and Residence Life Revenues the Total Resources Operating Budget would be $192.3 million.

slide8

General Fund Budget Process Timeline

Fiscal Year 2009-10

  • February: Governor State of the State
  • February: Governor Executive Budget to the legislature
  • March/April: House Budget Subcommittee Hearing
  • April 30/May 1: Board of Trustees Meeting
  • May/June: Senate Budget Subcommittee
  • May/June??: House and Senate floor votes
  • June ??: House/Senate Conference Committee
  • July 16/17: Board of Trustees Meeting

(may need special board meeting to set tuition and fees)

slide10

NMU Total Resources General Fund Budget

Total = $102.4 million

Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and Fees the Total Resources General Fund Budget would be $112.9 million.

slide11

Total General Fund Resources History

(Source: Actual General Fund Revenues State of Michigan HEIDI Database)

1981

1991

2008

2001

To maintain financial reporting consistency with fiscal years ’81, ’91, and ’01 data, financial aid was not deducted from ’08 tuition and fee revenue.

slide12

Appropriation

Appropriation History

(shown in 000,000s)

slide13

Fiscal Year Equated Student (FYES)

  • Calculation:
    • Total undergraduate credit hours divided by 30 equals 1 FYES
    • Total graduate credit hours divided by 24 equals 1 FYES
    • NMU Total FYES for FY2008 = 8,428
      • Fall 2007 Headcount (FY2008) = 9,358
      • Fall 2008 Headcount (FY2009) = 9,347
slide15

Appropriations per FYES

Fiscal Year 2008-2009

FY 2009 Appropriation divided by FY2008 FYES

Source: Presidents Council, State Universities of Michigan

slide16

Tuition and Fee Rates

Fiscal Year 2008-2009

Annual resident undergraduate tuition and fee rates

Source: Presidents Council, State Universities of Michigan

slide17

Non-resident Tuition and Fee Rate Comparison

FY2008-2009 Annual nonresident undergraduate tuition and fee rates

Source: Michigan President’s Council Report on Tuition and Fees for FY2008-09

slide19

Total Costs per FYES: NMU vs. Michigan 12

Fiscal Year 2007-2008

Michigan 12 (M12): excludes Michigan State University, University of Michigan Ann Arbor, and Wayne State University)

slide20

State Comparison of NMU vs. M11 Universities

Revenues and Expenditures per FYES Fiscal Year 2007-2008

slide21

NMU Total Cost per FYES History

  • FY 1998: $ 9,643 (10 years)
  • FY 2002*: $10,343 (5 years)
  • FY 2008*: $11,969
    • Total costs per student (FYES) increased a total 24.1% over the past 10 years (approximate average increase of 2.4% per year since 1998)

* Includes costs for implementation of TLC (NMU’s notebook computer program – providing all full-time students with notebook computer on two-year replacement cycle)

slide22

History – Total Revenues per FYES

Source: State of Michigan HEIDI Database

slide23

History – Appropriations per FYES

Source: State of Michigan HEIDI Database

slide24

History – Tuition Revenue per FYES

Source: State of Michigan HEIDI Database

slide25

History – Financial Aid per FYES

Source: State of Michigan HEIDI Database

slide26

History – Investment Income per FYES

Source: State of Michigan HEIDI Database

slide27

History – Total Expenditures per FYES

Source: State of Michigan HEIDI Database

Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.

slide28

History – Instruction per FYES

Source: State of Michigan HEIDI Database

slide29

History – Research per FYES

Source: State of Michigan HEIDI Database

slide30

History – Academic Support per FYES

Source: State of Michigan HEIDI Database

Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.

slide31

History – Total Academic Programs per FYES (Instruction, Research, and Academic Support)

Source: State of Michigan HEIDI Database

Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.

slide32

History – Public Services per FYES

Source: State of Michigan HEIDI Database

slide33

History – Student Services per FYES

Source: State of Michigan HEIDI Database

slide34

History – Institutional Support per FYES

Source: State of Michigan HEIDI Database

slide35

History – Plant Operations per FYES

Source: State of Michigan HEIDI DatabaseNote: Includes heating plant / utilities

slide36

History – Plant Operations

(excluding utilities)per FYES

Source: State of Michigan HEIDI DatabaseNote: Includes heating plant / utilities

slide37

History – Utilities per FYES

Source: State of Michigan HEIDI DatabaseNote: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.

slide38

History – Plant Operations (excluding utilities)

per Square Foot

Source: State of Michigan HEIDI Database

slide39

History – Auxiliary Activities per FYES

(Primarily Intercollegiate Athletics)

Source: State of Michigan HEIDI DatabaseNote: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.

slide40

Auxiliary Activities Total Expenditures

(Intercollegiate Athletics)

Source: State of Michigan HEIDI DatabaseNote: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.

slide41

History – Transfers per FYES

Source: State of Michigan HEIDI Database

slide42

Budget Reduction History

  • General Fund budget cuts/operational savings/ reallocations
    • FY2003-04: $6.5 million
    • FY2004-05: $2.8 million
    • FY2005-06: $1.5 million
    • FY2006-07: $3.0 million
    • FY2007-08: $1.3 million
    • FY2008-09: $1.8 million
  • Organizational efficiency – consolidation of organization structure and increased productivity = lower cost
    • 5 vice presidents to 2
    • 5 academic colleges to 3
  • NMU faculty and staff are the most productive among the 15 public universities (student-to-staff ratio)
slide43

Productivity: Student-to-Staff Ratios

  • NMU has the best overall staffing efficiency ratios of the Michigan public universities
    • Productivity (student-to-staff ratio) 27.9% greater than state average (M11 universities)
    • Productivity increase of 6.2% over past 5 years (approximate average increase of 1.2%per year)

Productivity*

Staffing TypeRank

Administrative #1

Faculty #1

Service #5 Total #1

* Based on number of students divided by the number of staff.