Budget Overview

1
Budget Overview

• Budget Information Committee
• February 26, 2007

2
Questions submitted in advance

• What is the purpose of a University budget?

3
Budget Overview

• Purpose of a Budget
• Governing document
• Management tool and spending plan
• Communication of the University's priorities
• A baseline for financial performance

4
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?

5
Budget Overview

• Budget Transparency
• Public document posted on YSU website.
• Budget document is 20 pages of detail.
• Financial managers of all university depts.
  receive budget detail report.
• Discussed and approved by Board of Trustees at
  public meetings.
• Budget to actual comparison presented quarterly
  at public Board meetings.
• Audited financial statements posted on web.
• Budget Information Committee.

6
Budget Overview

• YSUs General Fund Budget
• FY 2007 135 million
• 13,183 students (fall 2006)
• 1,050 employees
• 1,800 student employees
• 139 acres with 41 major buildings
• 2.7 million square feet of building space

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Budget Overview

• General Fund Revenues by Source, FY 2007

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Budget Overview

• Tuition vs. State Funding, FY02 FY06

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Budget Overview

• YSU Tuition vs. State Funding for YSU, FY02
  FY06

10
Budget Overview

• State funding trends

11
Budget Overview

• General Fund Expenditures by Division, FY07

12
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have the budget increases for Academic
  Affairs been lower than other divisions in
  recent years?

13
Budget Overview
14
Budget Overview

• Budget Change since FY 2001

15
Budget Overview

• YSUs FTE Enrollments

16
Budget Overview

• YSU Faculty (FTE)

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Budget Overview

• YSU Student to Faculty Ratio (FTE)

18
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have Academic Affairs budget increases been
  lower than other divisions in recent years?
• Why did institution-wide increase by 44.2?

19
Budget Overview

• Office of the President

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Office of the President

• Total FY 2007 budget 4,427,870

21
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have Academic Affairs budget increases been
  lower than other divisions in recent years?
• Why did institution-wide increase by 44.2?
• Why did other administration increase by 39?

22
Budget Overview

• Administration

23
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have Academic Affairs budget increases been
  lower than other divisions in recent years?
• Why did institution-wide increase by 44.2?
• Why did other administration increase by 39?
• Why did non-divisional transfers increase?
  Provide specific accounting of transfers,
  including transfers to the Foundation.

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Budget Overview

• Non-Divisional Transfers

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Budget Overview

• University policy on Transfers
• All inter-fund transfers 100,000 must be
  approved by the Board of Trustees.
• All inter-fund transfers of lt100,000 must be
  reported to the Board of Trustees.
• All transfers within the operating budget
  250,000 must be reported to the Board of
  Trustees.
• Transfers between General Fund and YSU Foundation
  are rare.

26
Questions submitted in advance

• What is the purpose of a University budget?
• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have Academic Affairs budget increases been
  lower than other divisions in recent years?
• Why did institution-wide increase by 44.2?
• Why did other administration increase by 39?
• Why did non-divisional transfers increase? Please
  provide specific accounting.
• Where is the money from healthcare co-pays going?

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Budget Overview

• Fringe Benefit Costs 23.6 million in FY06

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Budget Overview

• Budget Growth since FY 2000 FY 2007

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Questions submitted in advance

• What processes are in place to ensure budget
  transparency and communication of budgetary
  information to the university community?
• Why have Academic Affairs budget increases been
  lower than other divisions in recent years?
• Why did institution-wide increase by 44.2?
• Why did other administration increase by 39?
• Why did non-divisional transfers increase? Please
  provide specific accounting.
• Where is the money from healthcare co-pays going?
• An accounting of all reserve funds?

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Budget Overview

• Reserve Funds
• Funds set aside for a rainy day
• Reserves ? base dollars.
• Reserves one-time dollars.

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Budget Overview

• Institutional Reserves
• 5 Operating Contingency 6,760,000
• Plant funds
• Housing Services 1,153,000
• Kilcawley Center 1,342,000
• Parking Services 893,000

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Budget Overview

• States measure of fiscal health places an
  emphasis on maintaining reserves.
• The states scoring system places the greatest
  weight on reserves.
• Net Income 20 of total score.
• Viability 30 of total score.
• Primary Reserve 50 of total score.
• If financial distress is detected, a campus can
  be placed under state fiscal watch.

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Budget Overview

• Capital Budget
• FY 2007 44.4 million
• Not part of operating budget
• Funding sources
• State capital appropriations
• Philanthropy
• Debt proceeds

34
Budget Overview

• Debt per FTE - Ohio public universities, FY05

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Budget Overview

• Budget Process
• December June
• Develop revenue estimates
• Develop enrollment projections
• Develop tuition fee scenarios
• Obtain up-to-date state funding estimates from
  Ohio Board of Regents

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Budget Overview

• Budget Process
• December June
• Model expenditures
• Personnel costs are priority
• Other fixed costs
• Other base costs

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Budget Overview

• Budget Process
• March
• Present draft budget to Board of Trustees
• June
• Submit final budget to Board for approval
• December
• If necessary, submit a modified budget to the
  Board for approval

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Budget Overview

• Other questions for future discussion
• Summer School Committee report
• Banner budget
• Student wages
• Other topics?