1 / 24

Overview of College and University Finance

Overview of College and University Finance Presented by: John Griffith and David Proulx Purposes FINANCIAL MANAGEMENT ACCOUNTING CONTROL PLANNING BUDGETING REPORTING How does this relate to me? Does your unit have diverse revenue sources?

bernad
Download Presentation

Overview of College and University Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of College and University Finance Presented by: John Griffith and David Proulx

  2. Purposes FINANCIAL MANAGEMENT ACCOUNTING CONTROL PLANNING BUDGETING REPORTING

  3. How does this relate to me? • Does your unit have diverse revenue sources? • Are you over dependent upon one revenue source? • What steps if any is your unit taking to diversify your revenue?

  4. Reviewing the Tuition Mix • What does this mean? • What are the risks? • What are the opportunities ?

  5. Fund Accounting Overview • We use fund accounting • Funds established based on purpose of fund • Major fund groups are: • Current Funds • Plant Funds • Endowment Funds

  6. Fund Accounting

  7. Current Unrestricted Funds • Educational and General Fund • Instructional operating funds of the University • Tuition, indirect cost recovery and state appropriation revenue • Internally Designated Funds • Funds - designated for a specific program - example: study away programs, PI funds • Auxiliary Enterprise Funds • Supported through separate revenue streams (fees) • Examples include: MUB, Campus Rec, Housing, Dining

  8. Current Restricted Funds • Restricted Gifts • Donations from alumni, corporations and others • Funds can only be used in accordance with donor’s restrictions • Grants/Contracts • Federal, State and private grants to perform research or public service. • Expenditures must be in compliance with Federal and State regulations as well as Grant Proposal/Awards.

  9. How does this relate to me? • Do you understand all the external restrictions on your funds? • This is a large area of exposure.

  10. Plant Funds • Includes fixed assets and long-term debt • Capital construction and Repair & Renovation fund • Capital Replacement

  11. How does this relate to me? • Is your unit saving funds in a plant fund to replace a capital asset (car, equipment, computers, future renovations)? • Should you be?

  12. Endowment Funds • Gifts from an external donor that can not be expended. • A portion of the investment income (4%) is paid out to be expended according to donor’s restrictions. • Quasi endowments are designated by Trustees.

  13. How does this relate to me? • Does your unit have a quasi-endowment fund? • What are the advantages and disadvantages of establishing a quasi endowment fund?

  14. How does this relate to me? • What is an appropriate level of reserves? • What factors impact appropriate reserve levels?

More Related