Transcript Slide 1

University Budget Basics
December 2010
First - The Basics
 Fiscal year
 Fund Types
- Unrestricted vs. Restricted
 Object Codes
 Responsibility
 Organization Codes
 Budget vs. Actual
 Operating Units
38 – Moore School of Business
15000A000 – DMSB
40140 – Fall Tuition Revenue
52024 – Domestic Travel
10-10-1-11-38-00
- Academic or Service
 Auxiliary Units
 System Campuses
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More Basics – System Overview
Flagship Institution - USC
Columbia
Senior Campuses
USC Aiken
USC Beaufort
USC Upstate
Regional Campuses
USC Lancaster
USC Salkehatchie
USC Sumter
USC Union
The System Campuses have approximately 33% of the
enrollments of the system and 18% of the total current
funds budget.
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Basics Continued – Alphabet Soup
Total Current Funds - Unrestricted and Restricted
At USC, this includes funds:
A, B, C, D, E, F, G, H, J, K, L, S, R & RP
Excludes funds:
T, V, W, X, Y & Z
General Operating – State Appropriations, Tuition & Fees
Departmental – Student Activities, Sales and Service
Auxiliary – Enterprise services
Grants, Contracts and Gifts
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Where is the University Budget?
http://busfinance.admin.sc.edu/budget
http://www.scstatehouse.gov/htmlpages/budget.htm
Why Do We Need to Budget?
The University budget and unit budgets are
spending plans that:
Determine sources of funds
Allow maximum use of resources
Control spending
Coordinate activities to meet goals &
objectives
Serve as a communication tool
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Why Do We Need to Budget?
State law
Accreditation standards
Board bylaws
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What Does the Budget Office Do?
Prepare the annual budget document for consideration by the Board
of Trustees that reflects the mission and vision of the University of
South Carolina.
Assist business officers and administrative heads of colleges,
campuses and other University units in executing the Boardapproved budget and in maximizing their use of limited resources to
meet the University's mission of providing high quality instruction,
research and public service to its customers.
Prepare and submit the University's state budget to appropriate
agencies and assist legislative contacts in justifying budget requests.
Assist executive University staff and other Division of Finance and
Planning staff in ensuring that the University maintains a sound
financial status and operates within the budget limitations
established by the General Assembly and the Board of Trustees.
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What Does the Budget Office Do?
Budget Development
Budget Execution
Budget Analysis and Reporting
Budget Planning
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What Does the Budget Office Do?
January
February
March
April
May
June
July
August
September
October
November
December
FY2010
FY2011
Final Analysis Execution
Execution
Execution
Execution
Execution
Execution
Clean up/Carryforward
Clean up/Carryforward
Variance
Reporting
Analysis
Analysis
FY2012
Preparation
Development
Development
Development
Development
Development
Implementation
Execution
Execution
Execution
Execution
Execution
FY2013
Planning
Agency Activity Inventory
CHE Presentation
Accountability & Governor's Budget
OSB Line Item
OSB Line Item
Submit info to CHE and B&CB
Submit info to CHE and B&CB
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How much is it?
How much do you think USC’s budget is?
How much is it?
A)
$ 76,919,624
B)
$ 121,345,898
C)
$ 538,065,932
D)
$ 1,125,137,838
E)
$ 1,121,838,000
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Everyone wins!
A)
$ 76,919,624
- Columbia Athletics Department Budget
B)
$ 121,345,898
-System State Appropriations Budget
C)
$ 538,065,932
- Columbia “A” Fund Operating Budget
D)
$ 1,125,137,838
- System Total Current Funds Budget
E)
$ 1,121,838,000
- USC State Budget Total
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FY11 Total Current Funds Revenue Budget
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FY11 Base Cut – State Appropriations Bill
REVISED
BASE &
ESTIMATED
ESTIMATED
STATE FUNDS TRAVEL CUT
BASE
VETOES
STATE FUNDS
2009/2010
21.00%
2010/2011 SUSTAINED*
2010/2011
Columbia
111,849,075
(23,488,306)
88,360,769
(1,623,719)
86,737,050
School of Medicine
16,671,729
(3,501,063)
13,170,666
0
13,170,666
Columbia & SOM TOTAL
128,520,804
(26,989,369)
101,531,435
(1,623,719)
99,907,716
Aiken
Beaufort
Upstate
Lancaster
Salkehatchie
Sumter
Union
USC System TOTAL
7,772,409
1,834,243
10,138,616
1,935,139
1,649,214
3,061,316
746,001
155,657,742
(1,632,206)
(385,191)
(2,129,109)
(406,379)
(346,335)
(642,876)
(156,660)
(32,688,125)
6,140,203
1,449,052
8,009,507
1,528,760
1,302,879
2,418,440
589,341
122,969,617
0
0
0
0
0
0
0
(1,623,719)
6,140,203
1,449,052
8,009,507
1,528,760
1,302,879
2,418,440
589,341
121,345,898
*Does not include veto of Access & Equity program across all campuses totalling $110,374. These funds were
allocated via CHE.
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USC System - State Appropriation Reductions
Columbia
School of Medicine
Columbia & SOM TOTAL
Aiken
Beaufort
Upstate
Lancaster
Salkehatchie
Sumter
Union
USC System TOTAL
TOTAL
REDUCTIONS PERCENTAGE
SINCE FY2008 REDUCTION
(75,714,638)
-47.08%
(10,790,688)
-46.99%
(86,505,326)
-47.07%
(5,174,788)
(1,447,898)
(6,818,715)
(1,271,093)
(1,093,288)
(2,032,690)
(491,477)
-46.22%
-50.36%
-46.52%
-45.87%
-46.02%
-46.11%
-45.90%
(104,835,275)
-46.98%
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Total Current Funds Revenue Sources
100%
90%
80%
70%
60%
50%
Sales & Svc Auxiliary Enterprises
Sales & Svc Educ Activities
40%
30%
Gifts, Grants, Contracts
State Appropriations
Tuition and Fees
20%
10%
0%
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What are “A” Funds?
Operating/General funds
Majority provided from tuition and fees and
state appropriations
These funds are also called Education and
General – or “E & G” funds
“A” funds are unrestricted - dollars may be
used to accomplish the goals of the unit within
the constraints of State and University policies,
procedures & procurement guidelines
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USC System “A” Fund Budgets
At July 1, 2010 – USC System “A” Funds Revenue
Tuition and Fees
$ 440,365,811
76.37%
State Appropriations
$ 121,345,898
21.04%
Grants, Contracts and Gifts
$
6,257,497
1.09%
Sales, Services & Other Sources
$
8,643,696
1.5%
Auxiliary Enterprises
$
0
0.0%
Total “A” Fund Budgets
$ 576,612,902
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USC Columbia In-State Undergraduate
Tuition & Required Fees
9,786
10,000
8,838
9,156
8,346
7,808
8,000
7,314
6,416
17.00%
5,778
6,000
14.0%
4,984
15.01%
4,260
11.04%
4,000
10.00%
6.89%
6.90%
5.90%
6.75%
2,000
3.60%
0
FY2002
FY2003
FY2004
FY2005
FY2006
Actual
FY2007
FY2008
FY2009
FY2010
FY2011
Pe rce ntage
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Undergraduate Tuition & Required Fees Comparisons
South Carolina Public Higher Education Baccalaureate Institutions
FY 2011
Percentage Increase
Tuition Amount
Winthrop
4.91%
$12,176
Clemson
7.50%
11,908
College of Charleston
14.75%
10,314
The Citadel
13.00%
9,871
USC Columbia
6.90%
9,786
Coastal Carolina
4.90%
9,390
Lander
4.50%
9,144
USC Upstate
5.00%
9,072
SC State
5.20%
8,898
Francis Marion
6.50%
8,480
USC Aiken
6.00%
8,374
USC Beaufort
9.50%
7,940
USC Regional Campuses - under 75 hours
6.50%
5,888
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FY2011 Tuition and Required Fee Comparison
Public SEC Schools
$9,786
$10,000
$8,736
$9,000
$8,610
$7,900
$7,900
$8,000
$7,382
$6,768
$7,000
$5,731
$6,000
$5,436
$5,461
$5,020
$5,000
$4,000
$3,000
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What About the Lottery?
The South Carolina Education
Lottery provides funds to South
Carolina students based on merit for
use at public and private institutions
in the state.
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HEPI
Higher Education Price Index
Similar to the Consumer Price Index (CPI)
Calculated by the CommonFund in Washington
Interim reports periodically
Annually updated in July
2.0% last year
.9% this year
HEPI is made up of 8 variables – most personnel
Faculty, administrative, clerical, and service salaries
Fringe benefits
Misc. services
Supplies and materials
Utilities
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Why Does Tuition Go Up?
 Labor
-% of budget for personnel & fringe
-Health insurance and retirement increases
-Academic labor market
 Technology
 Utilities
 Enrollments go up
 Fund new initiatives
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Other Fees
Technology Fee
Enrichment/Program Fees
Lab Fees
Housing, Food, Parking, etc
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Who has input into developing the budget?
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External Budget Development & Execution
Budget Development
Commission on Higher Education
Governor
General Assembly
Budget Execution
Budget & Control Board
State Treasurer
Comptroller General
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External Budget Process
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FY2012 External Budget Process
Governor’s Executive Budget
House Ways & Means Budget
Senate Finance Budget
Conference Committee Budget
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Internal Budget Process
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The Baseball Bat
For Columbia
•Plan on tuition increase each year
•Increase student population systematically
•Cut budgets over two years and use one-time funds to bridge
•Overcut – Risk of mid-year cut
– Estimation Risk
•Reduce budgets strategically (not across board)
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The Baseball Bat
Tuition Fee Increase
Enrollment Increase
Overcut from FY 2010
Recurring Expense Reduction
= Total State Reduction
Columbia: Example Only
FY 2010-11 Recurring Cut = $23,488,306
Tuition increase
5% $12,000,000
Added enrollment
200
$1,546,395
FY 2010 Overcut
$1,418,535
Expense Reductions
$8,523,376
Total State Reduction
$23,488,306
FY 2011-12 Recurring Cut = $20,000,000
Tuition increase
5% $24,600,000
Added enrollment
200
$4,755,164
Expense Reductions
$14,133,142
Total State Reduction
$43,488,306
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Cost Management Measures
• Travel Restrictions
• Faculty & Staff Hiring Freeze
• Post-Retirement Hires
• Retirement Incentive Plan and Voluntary Separation Plan
• Under Consideration – Cell Phones, Parking
• Focus Carolina – Cost containment & efficiency study with Huron Consulting
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USC Columbia Campus – FY 2011
Academic Programs and Services
Budget Reallocation Initiative
University Libraries
Total
Academic Support and Student Affairs Programs
Scholarship 4% Fee Waiver Increase - In-State Undergraduate
Career Center - Experiential Education
Total
$8,000,000
$340,000
$8,340,000
$579,650
$90,000
$669,650
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USC Columbia Campus – FY 2011
General Institutional Costs and Central Operations
Utility Increases
Environmental Health and Safety - Insurance Increase
Environmental Health and Safety - Hazardous Waste Increase
Environmental Health and Safety - Fire Extinguisher Inspection
Facilities - Operation and Maintenance of New Facilities
University Development and Alumni Relations - Capital Campaign
University Communications
Health Insurance Employer Cost Increase
OneCarolina
Legal - Operating
Total
$545,550
$29,500
$32,000
$34,000
$637,500
$1,100,000
$250,000
$510,800
$1,500,000
$226,000
$4,865,350
Mandated Fee Distributions
Transportation Fee
Student Health Center
Renovation Reserve
Total
$200,000
$650,000
$800,000
$1,650,000
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Strategic Planning & Budget Development
System-wide strategic planning; inclusive and transparent
Budgets are calibrated to strategic plans
Core Mission and Access & Affordability
Two-year modification of Columbia budget model
Strategic finance – includes capital and operating budgets
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