FY2013-14 Budget Overview October 4, 2012 CONFIDENTIAL – INTERNAL USE ONLY.
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Transcript of FY2013-14 Budget Overview October 4, 2012 CONFIDENTIAL – INTERNAL USE ONLY.
FY2013-14 Budget OverviewOctober 4, 2012
CONFIDENTIAL – INTERNAL USE ONLY
Agenda
• Financial Context for FY2014 Budget– FY2012 Year End Review– FY2013 and beyond
• Preparing the FY2014 Budget– Timeline and Key Dates– Strategic initiatives– Budget Guidelines– Overview of Basic Forms
• Questions
FY2012 Year End Review
FY2012 – yet another successful year
Success due to entire Colby campus realizing the challenges ahead
(in $000s)
Total Revenues$140,176Total Expenses/Deductions$139,908Net $ 268
Endowment Returns• FY2012 Return in top quartile for college/university
endowments
FY2012 Year End Review
2008 2009 2010 2011 2012$0
$100
$200
$300
$400
$500
$600
$700
0.6%
(21.8%)
13.5%
24.0%
0.8%
Endowment Return
Mar
ket V
alue
in $
Mill
ions
FY2012 Year End Review
Gifts• Gift cash flows stable in FY2012
2007-08 2008-09 2009-10 2010-11 2011-12 $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$23,149
$20,053 $20,663
$28,882
$20,719
FY2012 Year End Review
Debt• Colby issued bonds for the Biomass facility and new Science
building in FY2012
2008 2009 2010 2011 2012$0
$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000
$100,000
13.3%
17.2%
15.0%
12.0%
14.6%
Debt Debt-to-endowment
Out
stan
ding
Deb
t ($0
00s)
FY2012 Year End Review
BUD03 BUD04 BUD05 BUD06 BUD07 BUD08 BUD09 BUD10 BUD11 BUD12 BUD13$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Student Charges EndowmentGifts and Grants for Operations Auxiliaries and Other
Am
ounts
in $
000s
Revenues• Stable growth over the past decade• Increase in endowment utilized for operations
Year End 2012 Review
BUD03 BUD04 BUD05 BUD06 BUD07 BUD08 BUD09 BUD10 BUD11 BUD12 BUD13 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Compensation Financial Aid Reserve for Strategic InitiativesUtilities Debt Service Renovation AllocationOther Non-Compensation
Am
ounts
in $
000s
Expenses• Growth in compensation, financial aid and debt service• Non-compensation flat
Outlook: 2013 and 2014
Outlook: FY2013
Current Fiscal Year
• FY2011, FY2012 and now FY2013 each show steady state results.
• We are in the processing of adding 20 new FTEs as part of our strategic plan.
• Biomass plant on line. New storage facility, Museum and Science building under construction.
• Endowment has been at pre-2008 levels for two years now.
• Long-range financial model shows balanced to positive results.
Outlook 2013
Concerns:
• Local / State: local and state economies lag the nation’s economy, which is not strong either.
• National: looming “fiscal cliff” – expiration of tax cuts and implementation of mandatory budget cuts in January, 2013 unless Congress acts.
• International: no resolution to European euro crisis; “hot spots” throughout the Middle East
• Most will effect the endowment to some degree (positive or negative), but other effects may be evident as well.
Outlook 2014
Concerns:• Is the higher education market in this country still viable, and for
how long? • Is there a bubble looming?
Budget FY2013-14
BUDGET FY2014
• Timeline– September 28, 2012– “Budget Call” notice sent
– October 22, 2012 – Budgets due from all departments (sooner works, too)
– November 16, 2012 – Office of Financial Planning completes first draft of Preliminary Budget
– December, 2012 – Conference call with Budget and Finance and Compensation Committees
– February, 2013– Budget and Finance Committee approves the Preliminary Budget
– February - March, 2013 – Office of Financial Planning updates key assumptions and prepares final Proposed Budget
– April, 2013 – Board approves Proposed (Final) Budget
Budget FY2014
Strategic Initiatives:
• Staffing– 10 new faculty FTEs over the next three years– Academic support positions– Museum staffing– Benefits
• Financial aid– New aid awards and other support
• Capital projects– Operation costs for museum, science, and storage projects
• Other– On-going support for gift and grant-funded initiatives
BUDGET FY2014
• No more than 1% non-compensation increase
• No more than 2% student worker increase
• Web form will calculate the blended amount available
• Requests for deviations must be justified in writing and are not guaranteed
BUDGET FY2014
• How to Calculate FY2013-14 Budgets– Review budget-to-actual spending patterns
and strategic priorities for your area
– Not all items need to be kept at the same level - remember this is YOUR management document
– Consult with your vice president or dean as appropriate during the preparation process
– Consult with the Office of Financial Planning
– Budget request sent to PRIMARY Budget supervisor only; re-assignment to two additional supervisors possible
BUDGET FY2014
ACT 2012 BUD 2013BUD 2014
6100 Travel $30,000 $50,000 $40,000
6140 Postage $25,000 $30,000 $15,000
6340 Contract Svcs $20,000 $20,000 $46,000
Total $75,000 $100,000 $101,000
BUDGET FY2014
• Budget according to needs, but we do not subscribe to the “use it or lose it” approach
• We remain “bottom line” focused • across all object codes • across all VP areas
• If you think you need a capital project (Form E) you should have started in September, but if you have not, start ASAP by consulting with PPD
• If your budget includes cell phones you must consult with Ken Gagnon (x4239) on rates and equipment costs
Forms
BUDGET FY2014 - 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
BUDGET FY2014 - FORMS
BUDGET FY2014 - FORMS
Status will change to SUBMITTED
Form A = Budget Request
Forms B and D = Backup Data for A
Forms C, E, F = Submit if necessary
BUDGET FY2014 - FORMS
BUDGET FY2014 – FORM A
BUDGET FY2014 – FORM A
BUDGET FY2014 – FORM B
BUDGET FY2014 – FORM C
• Remember – 4:30pm Monday, October 22
• Total non-compensation items limited to 1% increase over last year’s budget; 2% for student workers
• 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
BUDGET FY2014 - Reminders
• Remember – 4:30pm Monday, October 22
• Total non-compensation items limited to 1% increase over last year’s budget; 2% for student workers
• 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
BUDGET FY2014 - Reminders
• Office of Financial Planning will be consulting with areas as necessary
• Questions? call Scott Jones x5522 or Nora Dore x5521
• Web Site:
https://www.colby.edu/administration_cs/financialplanning/budgets/fy2014.cfm