Post on 20-Jan-2016
FY2012-13 Budget Overview
October 2011
Agenda
• Financial Context for FY2013 Budget– FY2011 Year End Review– FY2012 and beyond
• Preparing the FY2013 Budget– Timeline and Key Dates– Budget Guidelines– Using Prior Data as a Guide– Key Items– Overview of Basic Forms
• Questions
FY2011 Year End Review
• FY2011 – yet another successful year– Success due to entire Colby campus realizing the challenges ahead
(in $000s)
Total Revenues $136,030
Total Expenses/Deductions $135,763
Net $ 267
• The endowment grew $109 million due to return on investment and gifts.
FY2011 Year End Review
2007 2008 2009 2010 2011$0
$100
$200
$300
$400
$500
$600
$700 21.9%
0.6% (21.8%)
13.5%24.0%
Endowment Return
Mar
ket V
alue
in $
Mill
ions
FY2011 Year End Review
• Cash flows increased due to the Reaching the World Campaign
2006-07 2007-08 2008-09 2009-10 2010-11 $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000 $25,580
$23,149 $20,053 $20,663
$28,882
FY2011 Year End Review
• Debt remains very low - financial flexibility retained
2007 2008 2009 2010 2011$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
10.9%
13.3%
17.2%15.1%
12.0%
Debt Debt-to-endowment
Out
stan
ding
Deb
t ($0
00s)
Outlook FY2013
• FY2012 – so far, so good• Multi-year budgets are largely balanced
BUT…..• The economy remains weak• The stock market is nervous
Dow – Decline since July
Dow Jones Industrial Average – One Year Index Values
But no FY2008 repeat
• Endowment better positioned• Working capital position strengthened• Increased funding liquidity• Financial analyses include a “disaster”
scenario• Biomass facility expected on line soon
Outlook FY2013
• All eyes on:– Endowment return– Cash flows from gifts– Economic indicators, especially inflation
Strategic Initiatives
• Academic Initiatives– Science building– New faculty and support positions
• Museum• Financial Aid / Diversity• Green Colby• Other staffing• Fundraising
• 0% non-compensation increase– Requests for deviations must be justified in writing
• Student worker expense (5211, 5212)– Actual expenses were 23% under budget campus-wide
in FY11, continuing a multi-year trend• This is NOT where we want to balance the budget.• If you have it, use it. If you haven’t used it, but will, keep it.
• Cell phones (maybe in both 5220 & 6112)– For now, budget like last year, but federal law has
changed. Separate instructions may be forthcoming.
Budget FY2013
• Departmental FY2012-13 Budgets– Review budget-to-actual spending patterns and
strategic priorities for your area– Not all items need to be kept at the same level– Consult with your vice president or dean as appropriate
during the preparation process– Budget request sent to PRIMARY Budget supervisor
only; re-assignment to two additional supervisors possible
FY2012-13 Budget
• Timeline– September 30, 2011 – “Budget Call” notice sent– October 21, 2011 – Budgets due from areas– November 18, 2011 – Office of Financial Planning completes first
draft of Preliminary Budget– December, 2011 – Conference call with Budget and Finance and
Compensation Committees– January, 2012 – Budget and Finance Committee approves the
Preliminary Budget– March, 2012 – Office of Financial Planning updates key
assumptions and prepares final Proposed Budget– April, 2012 – Board approves Proposed Budget
FY2012-13 Budget
FY2012-13 Budget
Effect of 0% IncreaseTotal BUD 2011 $100,000
Total ACT 2011 $ 75,000
Total BUD 2012 $100,000
Total BUD 2013 ????
$100,000
FY2012-13 Budget
ACT 2011 BUD 2012 BUD 2013
6100 Travel $30,000 $50,000 $40,000
6140 Postage $25,000 $30,000 $15,000
6340 Contract Svcs $20,000 $20,000 $45,000
Total $75,000 $100,000 $100,000
FY2012-13 Budget
• Cell phones– Removed from IRS “Listed Property” list– Separate instructions may be forthcoming.– Departments must still submit request form for
new phones or changes in plans, even if money approved in budget
• Postage– Rates may increase to $0.46, post cards to $0.30
Forms
• Operating Forms– Form A – Budget Request– Form B – Student Employment– Form D – Equipment, Furniture & Fixtures
• Form D is used for items costing more than $500 and having a useful life of more than 1 year.
• Other Forms (Use if necessary)– Form C – Temporary Summer Positions– Form F – Promotions, Re-classifications and/or Salary Adjustments
• Separate Consideration– Form E – Facility Projects
• Refer to the web site for additional information and instructions
Status will change to SUBMITTED
Form A = $ Budget Request
B & D (back-up
info Form A)
C, E, F Lets Budget
Manager know if they have a request
Form A
• You have the option to review the budget information on screen or download to Excel.
• To simplify the task, salary, benefit, insurance and basic and toll telephone items have been omitted from this budget request form.
• Budget request must be manually input for each object code in whole dollars.
• Once Form A is completed, click “Subtotal Form A” and the top part of the screen will advise you of your total budget request for 2012-13.
• If there is an increase above 0.0% you will need to either adjust your budget request or provide justification in that section.
Forms B• Form B: is a tool to help compute the budget request for Student
Employment and should cover only academic year student employment.
• Financial aid students are encouraged to work during the school year and we should make every effort to provide maximum opportunity for them to do so.
• As you contemplate the composition of your student work force for the coming year, please keep in mind that student jobs will be classified into level grades as outlined below.
• Contact Bill Pottle (ext. 4130) should you have questions regarding student employment.
Next Steps
• Remember – 5pm Friday, October 21• Total non-comp budget increases for an area limited to 0%
over last year’s budget• Instruction Overview on the web-site:
– Restricted Funds – Scott Smith x4123– Student Employment Form B – Bill Pottle x4130– Cell Service – Ken Gagnon x4239– Facility Projects – Form E – Kelly Doran x5031– Computer Hardware & Software Requests – Ray Phillips x4209
Contact
• Office of Financial Planning will be consulting with areas as necessary.
• Questions call Scott Jones x5522 or Nora Dore x5521.• Complete budget information:
http://www.colby.edu/administration_cs/financialplanning/budgets/fy2013.cfm