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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

The University of Montana

Preparing Designated/Auxiliary

FY11 Operating Plans

learning objectives
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
why are we here
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
why write a plan1
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
designated funds
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
examples of designated funds
Examples of Designated Funds
  • Student Course Fees
  • Sales & Service Accounts
  • Self-support Activities
  • Lab Fees
auxiliary funds
Auxiliary Funds

Primarily student-related

  • Fee-for-service activities
  • Self-support activities
  • Entrepreneurial activities and
  • Investment income

Examples of Auxiliary Funds

  • Residence Halls
  • Food Services
  • Printing & Graphics Services
  • Golf Course
  • Campus Recreation Center
process overview
Process Overview
  • Planning
  • Budget Preparation
  • Assessment
  • Budget Modification
process overview1
Process Overview




operating plan
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
operating plan1
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
operating plan2
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
pivot tables3
Pivot Tables
  • To create a Pivot Table in Excel:
    • Highlight the Data
    • Choose Insert
    • Pivot Table
pivot tables4
Pivot Tables

Pivot tables are super!

operating plan3
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
spaba revenue

SPABA Revenue

Estimating SPABA revenue to complete the operating plan and budget.

operating plan4
Operating Plan
  • Other Planning Tools
      • Contracts
      • Professional Journals and Organizations
      • Current Events
      • OPBA Assumptions Package
operating plan5
Operating Plan
  • Forms
      • FY11 Operating Plan Template


Describe the operation

Describe its history

Explain the nature of its business activities


Revenue Assumptions & Projections:

  • Specify revenue sources and amounts
  • Address the timing of revenue
  • Explain anticipated changes

Expenditure Assumptions and Projections:

  • Outline expenses
  • Explain anticipated changes

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

Management Issues, Trends, Significant Events

Discuss significant issues, trends and events expected to impact the operating unit.


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

operating plan6
Operating Plan
  • Preliminary Plan Review - February 16, 2010
  • All Plans Due – No later than March 12, 2010

Submit your plan to OPBA

what happens next
What happens next?
  • Dean or Director reviews and signs the plan
  • Signed plan is forwarded to OPBA
  • OPBA screens the plan for methodology, forwards plan to appropriate Vice President and coordinates conferences if necessary
  • With Vice President’s approval the plan is then forwarded to the President.
  • If plan is not approved, it is returned to the department for revision.
upcoming events
Upcoming Events
  • Position Budget Training

- Wednesday, January 27th or

- Thursday, January 28th

  • Build Designated/Auxiliary Budgets

- Thursday, February 11th or

- Thursday, March 11th

  • General Funds Budget Training

- Wednesday, April 21st or

- Thursday, April 22nd