Transcript Return on Investment of the Recruiting Process

BUDGETING AT UNC PEMBROKE
•ENROLLMENT GROWTH FUNDING
•FY-2011 FACTS
•FY-2012 PLANNING
BOARD OF TRUSTEES MEETING
SEPTEMBER 23, 2010
PURPOSE OF TODAY’S PRESENTATION

Develop a better understanding of State
budgeting and the associated processes

Discuss UNCP budgeting in detail
UNC Pembroke
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July 21, 2015
WHY DO WE BUDGET?
The North Carolina Legislature and the State
Constitution
 The “State Budget Act” as defined in General
Statue 143C-1-1 establishes procedures for
the following:

1.
2.
3.
Enacting the State budget
Preparing the recommended State budget
Administering the State budget.
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July 21, 2015
PREPARING THE RECOMMENDED STATE
BUDGET

North Carolina General Statute 143C-2-1
provides that the Governor is Director of the
Budget. As such, the Director has responsibility
to prepare and recommend the State budget,
and the Director’s powers extend to all
agencies, institutions, departments, bureaus,
boards and commissions of the State of North
Carolina.
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July 21, 2015
DELEGATION OF POWERS

The Governor may -- and does -- delegate
certain powers and authorities of the
Governor as Director of the Budget to the
Office of State Budget and Management
(OSBM) (G.S. 143C-2-1(a)).
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July 21, 2015
OFFICE OF STATE BUDGET & MANAGEMENT

The Governor has delegated the authority to
OSBM to:
1.
2.
3.
4.
Prepare the recommended budget
Certify the ratified budget
Distribute the budget to state agencies
Monitor, report, and control the State budget.
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July 21, 2015
OFFICE OF STATE BUDGET & MANAGEMENT
Issues Biennial Instructions for Budget
Preparation
 Requests State Agencies Develop Budget
Request
 Prepares Economic and Revenue Forecast
 Reviews Agency Budget Requests
 Governor Finalizes Biennial Budget and Six-Year
Capital Improvement Plan

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July 21, 2015
STATE BUDGET DEVELOPMENT TIME LINE
Governor Presents Budget Message to
General Assembly
 Presents Governor's Budget to General
Assembly
 Appropriation Subcommittees Review All
Budget Requests
 General Assembly Finalizes Budget and
OSBM Certifies

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July 21, 2015
UNC BUDGET PROCESS
Legal Basis


State Executive Budget Act
Higher Education Reorganization Act of 1971
Board of Governors’ Role:



Presents comprehensive financial plans to General Assembly
Modifies plans based on resources made available by
Legislature
Establishes annual budgets which are administered by the
constituent institutions
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July 21, 2015
UNC BUDGET PROCESS
“A single, unified recommended budget for all public senior higher
education.”
Statute prescribes form of budget requests –
three categories:
1.
2.
3.
Continuing Operations (enrollment, utilities, vehicle
replacement) – allocated to institutions
Academic Salary Increases – lump sum to Board of Governors
and then allocated to campuses
Expansions/Reductions, when appropriate – by priority – lump
sum to Board of Governors and then allocated to campuses
• New and expanded programs
• Capital improvements
• Increases to remedy deficiencies
UNC Pembroke
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July 21, 2015
UNC BUDGET PROCESS
Key steps in process of budget preparation:
1. UNC President receives general instructions
from Governor via State Budget Office.
2. Budget workshops are conducted separately
with three groups:
•
•
•
UNC General Administration Council
Chancellors
Board of Governors
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July 21, 2015
UNC BUDGET PROCESS
Key steps in process of budget preparation:
(continued)
3.
4.
In conjunction with the decisions reached at the budget
workshops, instructions are provided to the campuses for
preparation of institutional budget requests.
• Continuation budgets
• Academic salary increases
• Expansions and improvements
Chancellor is responsible for the preparation of budget
requests for the institution and the assignment of any
institutional priorities that may be applicable. The process
of campus involvement is determined by the Chancellor,
who appoints delegates to work with UNC General
Administration.
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July 21, 2015
UNC BUDGET PROCESS
Key steps in process of budget preparation: (continued)
5.
Institutional budgets are reviewed:
• Continuation Budget – reviewed by Vice PresidentFinance for general consistency and conformance.
• Academic Salary Increases – campus data reviewed by
Senior Vice President for Academic Affairs and the Vice
President-Finance in a similar manner to continuation
budgets.
• Expansions and Improvements – reviewed by internal
review committee, headed by Senior Vice PresidentAcademic Affairs, composed of the General
Administration Council.
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July 21, 2015
UNC BUDGET PROCESS
Key steps in process of budget preparation: (continued)
6.
7.
8.
President confers throughout the process with the
Chancellors.
• Afterward, Vice President-Finance prepares
recommendations for Board and its Budget and
Finance Committee.
After a final budget workshop for the full Board, the Budget
and Finance Committee recommends the adoption to
Board.
Board takes final action, then submits to Governor and
Advisory Budget Commission
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July 21, 2015
UNC BUDGET PROCESS
Key steps in process of budget preparation:
(continued)
9.
10.
11.
President represents University in any hearings with
Governor.
Governor forwards recommendations to General Assembly.
President, or his designees, represent University in
Legislative hearings.
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July 21, 2015
ENROLLMENT BUDGETING OVERVIEW
The SCH enrollment change formula is driven
by the projected change in student credit hour
(SCH) production as classified in a 12-cell
funding matrix comprised of 4 areas of
instruction assigned a cost category and 3
levels of instruction.
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FOUR INSTRUCTIONAL/COST CATEGORIES
Category IV
Category II
14 – Engineering
66 – Nursing
13 – Education*
05 – Area, Ethnic, Cultural & Gender Studies
30 – Multi/Interdisciplinary Studies
52 – Business, Management & Marketing
24 – Liberal Arts & Sciences, Humanities
31 – Parks, Recreation, Leisure & Fitness
19 – Family & Consumer Sciences
16 – Foreign Languages, Literatures &
Linguistics
Category III
25 – Library Science
03 – Natural Resources &
Conservation
51 – Health Professions
01 – Agriculture
04 – Architecture
44 – Public Administration & Services
40 – Physical Sciences
50 – Visual & Performing Arts
11 – Computer & Information Sciences
15 – Engineering-related Technologies
26 – Biological Sciences
*Student Teaching Courses
UNC Pembroke
Category I
09 – Communications & Journalism
42 – Psychology
27 – Mathematics
45 – Social Sciences
23 – English
38 – Philosophy & Religion
43 – Corrections & Criminal Justice
5417– History
July 21, 2015
OVERVIEW
The three levels of instruction are
undergraduate, masters, and doctoral. These
three levels are based on differences in the
cost of instruction associated with average
class size.
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July 21, 2015
SCH CHANGE FUNDING MODEL
EXHIBIT 3-1 SCH Enrollment-Change Funding Model Actual UNCP Calculations Regular Term Request
Program
Category
Student Credit Hours
SCH per Instructional Position
Ugrad
Masters
Doctoral
Ugrad
Masters
Instructional Positions Required
Doctoral
Ugrad
Masters
Doctoral
Category I
-2924
-1386
0
708.64
169.52
115.56
-4.126
-8.176
0.000
Category II
5243
1379
0
535.74
303.93
110.16
9.786
4.537
0.000
Category III
2217
790
0
406.24
186.23
109.86
5.457
4.242
0.000
Category IV
-311
0
0
232.24
90.17
80.91
-1.339
0.000
0.000
Total
4225
783
0
9.778
0.603
5008
Subtotal Positions
Total All SCHs
Campus Ugrad Cost Factor with Positions
data input
Total Positions Required
calculated
Instructional Salary Rate of Campus
model provided
Instructional Salary Amount
0.000
10.382
20.00%
1.956
12.337
$74,584
$920,176
Other Academic Cost Rate and Amount
44.89%
Total Academic Requirements
$413,067
$1,333,243
Library Rate
11.48%
Library Amount
$153,056
Gen'l Instt. Support Rate
54.05%
Neg Adjustment Factor
50.00%
Gen'l Instt. Support Amount
$720,618
Total Requirements
$2,206,918
Calculation of Appropriation Request
Requirements Generated by SCH Model
FTE
Tuition
In-State Ugrad FTEs
342
2060
$704,520
OoState Ugrad FTEs
12
11267
$135,204
Res per GS116-143.6
5
2060
$10,300
In-State Grad FTEs
43
2159
$92,837
OoState Grad FTEs
1
11486
$11,486
Total Expected Revenue
Request Amount
UNC Pembroke
$2,206,918
TuitionRevenue
Revenue$
$954,347
$1,252,571
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July 21, 2015
FUNDABLE OR NOT FUNDABLE…
THAT IS THE QUESTION
In general, SCHs are fundable if they are
derived from degree creditable instruction in
the regular term (fall or spring semester) via oncampus or distance learning efforts.
SCHs are deemed non-fundable if covered by
other state appropriations, or if tuition is set to
cover the full cost of instruction.
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FUNDABLE
Regular term degree credit instruction delivered on
campus or at off-campus resident credit centers
 Distance education degree credit instruction
delivered to NC resident students, regardless of
location, summer and regular academic year
 Distance education degree credit instruction
delivered to non-resident students within NC
 Repeated courses
 Degree credit instruction offered via electronic
delivery

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NON-FUNDABLE







Non-degree-credit instruction
Certain instruction offered below the baccalaureate
level
Instruction to students auditing courses
Instruction generating continuing education units
(CEU’s)
On-campus instruction delivered during the summer
term
Distance education delivered outside NC to nonresident students
Instruction to university employees where employee
tuition waiver is claimed
UNC Pembroke
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July 21, 2015
UNCP REVENUE SOURCES
REVENUE
2007
2008
2009
2010
Unrestricted
State Appropriations
$50,606,593
$57,624,051
$50,448,094
$53,580,406
Student Tuition and Fees
$15,176,812
$18,038,017
$19,614,674
$21,167,374
$1,710,090
$657,179
($284,703)
$230,767
SUBTOTAL UNRESTRICTED
$67,493,495
$76,319,247
$69,778,065
$74,978,547
Sales and Services
$10,323,642
$13,835,062
$14,697,312
$14,975,706
$10,162,452
$11,804,653
$14,872,757
$21,881,143
State and Local Grants and Contracts
$271,605
$769,624
$405,523
$476,452
Nongovernment Grants and Contracts
$48,168
$49,760
$96,368
$166,606
$10,716,197
$6,127,194
$1,709,530
$3,234,143
$473,304
$433,656
$1,188,853
$660,489
$21,671,726
$19,184,887
$18,273,031
$26,418,833
$99,488,863
$109,339,196
$102,748,408
$116,373,086
Other Revenue
Restricted
Federal Grants and Contracts
Capital Appropriations
Additions to Endowments
SUBTOTAL UNRESTRICTED
Total Revenue
UNC Pembroke
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July 21, 2015
FY 2009 REVENUES
Sales and Services:
Sales and Services of Aux Enterprises:
Residential Life
$4,670,966
Dining
$3,379,254
Student Union Services
$45,479
Health, Physical Ed, Recreation
$767,875
Bookstore
$3,941,642
Parking
$257,511
Athletic
$181,194
Other
$1,168,696
Sales and Services of Ed and Rel Act.
$284,695
Total Sales and Services
UNC Pembroke
$14,697,312
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July 21, 2015
ADJUSTED DIVISION BUDGETS PER BANNER
Division
Adj. Requirements
% of Subtotal
Chancellor
$5,480,194
7.15%
Instruction
$43,141,048
56.25%
Academic Support
$10,570,599
13.78%
VC Business Affairs
$9,564,651
12.47%
VC Student Affairs
$1,962,079
2.56%
VC Enrollment
$3,630,214
4.73%
$766,207
1.00%
$1,577,422
2.06%
$76,692,414
100.00%
VC Advancement
VC University Relations
Sub Total
Utilities
$2,802,272
Student Financial Aid
$1,998,036
SUM
UNC Pembroke
$81,492,722
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July 21, 2015
UNCP BUDGETING PROCESS
Operational Funding
 Over-arching parameters provided by VC for
Business Affairs as set by General
Administration.
1.
Continuation Budget Request – developed and
entered into GA budget system by Director of
Budget and Financial Planning. Various divisional
employees provide input especially facilities staff.
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July 21, 2015
UNCP BUDGETING PROCESS
2.
Expansion and Reduction Requests
•
•
•
•
•
Divisional input solicited from appropriate
departments, prioritized, and submitted to Budget
Director.
Budget Director summarizes input to be shared
with the executive staff (ES) and Chancellor.
ES sets University priorities.
Chancellor approves priorities or modifies.
Approved data entered into GA budget system.
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July 21, 2015
UNCP BUDGETING PROCESS
3.
Capital Budgeting (new projects, appropriated and nonappropriated as well as repair and renovation requests)
• Asst. VC for Facilities directs the process with direction
given by General Administration.
• Six year plans for new projects and for the repair and
renovations.
• Divisions- Request for projects or needs is made to
departments and prioritized and shared with Asst. VC for
Facilities.
• Asst VC- Summarizes all requests by category. Shares
with ES and Chancellor.
• Chancellor- Approves or modifies the recommendations.
UNC Pembroke
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July 21, 2015
FY 2011 UNALLOCATED RESOURCES
2011 Enrollment Growth
Faculty salaries/benefits
(20.09 positions)
Library
Academic Affairs
Institutional Support
Total
$2,215,382
$2,215,382
$232,219
$232,219
Institutional Support
$1,145,375
$1,145,375
Prior Year Enrollment
Growth & Focus Growth
$2,342,574
$2,342,574
$3,487,945
$5,935,550
Total
UNC Pembroke
$2,447,601
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July 21, 2015
FY 2011 BUDGET REDUCTION
Budget Changes
Budget Amounts
Flex Reduction
$2,500,000
Tuition Offset
$1,335,200
Accounted For To Be Accounted For
$1,164,800
Legislative Mandates
Reversion 1%
$558,488
Recruitment
UNC Pembroke
$508,227
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July 21, 2015
FY 2011 UNFUNDED BUDGET REQUIREMENTS
Description
Recurring
Recruitment
$350,000
Workman Compensation
$350,000
Longevity
$121,000
SciQuest Implementation
$45,000
Campus Police Officers - 3
$121,000
SCT Consultant
$45,000
$160,000
Shared Services
$65,000
Audit Fees
$55,000
Other Controller $
$42,800
UNC Pembroke
Nonrecurring
31
$20,000
July 21, 2015
FY 2011 UNFUNDED BUDGET REQUIREMENTS
CONTINUED
Description
Recurring
Student Conduct Database
$5,500
Leadership Program
$12,000
Student Voice Assessment
$17,860
Restore Selected Permanent Cuts
$43,113
Maintenance postage equipment
$21,748
Assistant Budget Director
$82,171
Staff Tuition Waivers
$14,000
Business Services - nonrecurring
$64,000
Human Resources
UNC Pembroke
Nonrecurring
$23,700
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$14,000
July 21, 2015
FY 2011 UNFUNDED BUDGET REQUIREMENTS
CONTINUED
Description
Recurring
Nonrecurring
UNCP Today
$30,000
Level Three Body Armor
$12,600
Touring Bus
$250,000
Campus Maintenance and Appearance
$172,000
Building Leases – Lowery Properties
$24,000
Maintenance .80 FTE
$33,112
UNC Pembroke
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$125,000
July 21, 2015
UNCP BUDGET PLANNING FY 2012
Budget Memo # 1
 Expansion/Reductions
 Submit top 3 expansion requests
 Plan for 5% and 10% reduction of base budget
 GA will request funds for enrollment growth
 GA will consider requests for
1.
2.
Salary increases
Campus safety
UNC Pembroke
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July 21, 2015
UNCP BUDGET PLANNING FY 2012
General Planning Information
 Tuition Increase Approved – 218/yr



Additional Tuition Increase - $500/yr



6,676 FTE @ $500 = $3,338,000
20.6% tuition increase
Reductions



6,676 FTE @ $218 = $1,455,368
9% Tuition increase
5% = $3,000,000
10% = $6,000,000
Prior Year Unallocated Enrollment Growth ???
UNC Pembroke
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July 21, 2015
UNCP BUDGET PLANNING FY 2012
Budget Memo # 2
• Capital
1. Appropriated six year plan
2. Non-appropriated six year plan
3. Repair and renovations six year plan
UNC Pembroke
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July 21, 2015
LINKS FOR INFORMATION

Instructions for Preparation of the 2011-13 State Budget
http://www.osbm.state.nc.us/files/pdf_files/BudgetInstructions1_2011-13.pdf

The UNC Budget Development Process
http://www.northcarolina.edu/finance/budget/Budget_Process.pdf

NC General Assembly Senate Bill 897
http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S897v8.pdf

Enrollment Change Funding Model
http://qed.ncat.edu/ir&p/funding-manual.pdf
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July 21, 2015
FY 2011 BUDGET REQUESTS
Divisional Requests
Recurring
Non-recurring
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July 21, 2015
BUDGET DECISIONS/FACTS FY 2011
1.
2.
3.
4.
How/what to fund from unallocated resources.
How current year decisions impact next year’s
budget challenges.
Concern that many administrative
departments are under funded and under
staffed.
How to maintain current student/faculty ratios
during this period of enrollment growth with
budget reductions and reversions.
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July 21, 2015
BUDGET FACTS/OPTIONS FOR FY 2012
1.
2.
3.
4.
5.
6.
Anticipated 10% budget reduction ($6.0M)
Approved tuition increase $218
(9% increase, $1.5M additional revenue)
Possible reversions (1%-3%)
Possible programmatic reductions (administrative
and academic)
Consider possible additional tuition increases
(per General Administration, up to $500/year
20% increase ,$3.4M)
Prior year unallocated budgets
UNC Pembroke
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July 21, 2015
SUMMARY OF STUDENT CHARGES
Undergraduate Student
Charges/Year
2009 2010
2010 2011
Change
Amount
Change
Percentage
Tuition
$2,060
$2,423
$363
17.6%
Fees
$1,676
$1,717
$41
2.4%
Subtotal
$3,736
$4,140
$404
10.8%
Room/Board
$5,740
$5,990
$250
4.4%
Total Costs
$9,476
$10,130 $654
6.9%
UNC Pembroke
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July 21, 2015
FY 2012 BUDGET SCENARIO
Budget Reduction of 10%
$6.00M
Anticipated Budget Reversion of 2%
$1.20M
Total Reduction/Reversion
$7.20M
Possible Resolution
Approved Tuition Increase
$1.50M
Restate FY 2011 Reversion
$.56M
Unallocated Funds from Prior Years
$1.50M
Programmatic Reductions (Administrative & Academic)
$2.30M
Additional Tuition Increase ($200/yr or 8.2%)
$1.34M
Total
UNC Pembroke
$7.20M
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July 21, 2015
ENROLLMENT GROWTH EFFECT ON
APPROPRIATIONS FISCAL YEARS 2008-2011
$58,000,000
$56,000,000
$54,000,000
$52,000,000
$50,000,000
Accumulated EG, 2008 Forward
Base Appropriation
$48,000,000
$46,000,000
$44,000,000
$42,000,000
FY
2008
UNC Pembroke
FY
2009
FY
2010
43
FY
2011
July 21, 2015