Office of Financial Planning

October 2010

FY2011-12 Budget

Preparation

Agenda

• Financial Context for FY2012 Budget– FY2010 Year End Review– FY2011 and beyond

• Preparing the FY2012 Budget– Timeline and Key Dates– Budget Guidelines– Using Prior Data as a Guide– Key Items– Overview of Basic Forms

• Next Steps

FY2010 Year End Review

• FY2010 ended successfully– Weak macroeconomic issues still with us

– Success due to entire Colby campus realizing the challenges ahead

(in $000s)

Total Revenues $131,443

Total Expenses/Deductions $131,171

Net $ 272

• The endowment grew $49 million due to return on investment and gifts.

FY2010 Year End Review

12.2%

21.9%0.6%

-21.8%13.6%

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010

Mar

ket

Val

ue in

$M

illio

ns

Endowment Return

FY2010 Year End Review

• A successful conclusion to the Reaching the World Campaign

$32,756

$25,580 $23,149

$20,053 $20,663

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2005-06 2006-07 2007-08 2008-09 2009-10

FY2010 Year End Review

• Financial flexibility retained

11.2% 10.9%

13.3%

17.2%

15.0%

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2006 2007 2008 2009 2010

Out

stan

ding

Deb

t ($

000s

)

Debt Debt-to-endowment

Outlook FY2012

• FY2011 – so far, so good• Multi-year budgets are largely balanced

• Macroeconomic variables that may affect Colby– Inflation – Interest rates– Federal and state debt levels– Unemployment

• Impact of new health care legislation is still evolving

Outlook FY2012

• Key budget variables– Enrollment at 1,830

– Compensation increases

– Financial aid

– Endowment investment return and spending rate

– Fund raising

– Utilities

– Non-compensation increase at 0% nominal for one more year

• Financial aid

• Faculty and staff positions

• Faculty and staff salary increases

• Programs and student life initiatives

• Sustainability initiatives

• New facilities and renovation allocation

• Effectively manage expected benefit cost increases

• Manage potential future financial pressures

Goals and Strategic Initiatives FY2012-FY2021

FY2011 – 12 Budget

• Timeline– October 2, 2010 – “Budget Call” notice sent– October 22, 2010 – Budgets due from areas– November 19, 2010 – Office of Financial Planning completes first

draft of Preliminary Budget– December, 2010 – Conference call with Budget and Finance and

Compensation Committees– January, 2011 – Budget and Finance Committee approves the

Preliminary Budget– March, 2011 – Office of Financial Planning updates key

assumptions and prepares final Proposed Budget– April, 2011 – Board approves Proposed Budget

FY2011-12 Budget

• Departmental FY2011-12 Budgets– Total non-compensation budget increases for an area /

department limited to 0% over last year’s budget– 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

FY2011-12 Budget

FY2011-12 Budget

Effect of 0% IncreaseTotal BUD 2010 $100,000

Total ACT 2010 $ 75,000

Total BUD 2011 $100,000

Total BUD 2012 ????

$100,000

FY2011-12 Budget

ACT 2010 BUD 2011 BUD 2012

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

FY2011-12 Budget

• Cell phones– Removed from IRS “Listed Property” list– Budget using 6112 object code (not 5220)– Departments must still submit request form

for new phones or changes in plans, even if money approved in budget

• Postage– USPS rate increase denied; leave at $0.44

FY2011-12 Budget

• Other budget notes– Departments cover costs for color laser printing

($0.20 per copy); ITS covers costs for b/w– Copies produced internally = $0.07 per copy;

Copies produced externally = $0.03 (approx.)– Temporary summer positions are NOT

automatically renewed; you must re-justify

Forms

• Basic 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

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 2011-12.

• 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 22

• 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 informationhttp://www.colby.edu/administration_cs/financialplanning/budgets/fy2012.cfm