Operating Budget

Education and General (E&G) E&G represents the primary mission of the university: Instruction, Research and Public Service. This would also include those functions that are necessary to support the mission. Resources provided for this purpose are generally referred to as part of the current operating funds and, along with Auxiliary funds, comprise the annual operating budget. Revenues supporting E&G primarily consist of Tuition and Fees and State Appropriations.

AuxiliaryAn Auxiliary enterprise directly or indirectly provides a service to students, faculty or staff and charges a fee related to, but not necessarily equal to, the cost of services. Auxiliary enterprises are generally self-sufficient operations and include Athletics, Housing, Food Service, Bookstore, Student Health, Student Center, HPER, Farris Field, Radio Station, Post Office and Parking Facilities.

Unrestricted SourcesEducation & General Auxiliary

Tuition and Fees Student FeesState Appropriations Revenues from sources in chart

belowUnrestricted Grants and Contracts

Unrestricted Uses (Functional Classification)Education & General Auxiliary

Instruction Athletics

Research (unrestricted) Housing (including College Square)

Public Service Food Service

Academic Support Bookstore

Student Support Student Health

Institutional Support Student Center

Operation of Plant HPER

Scholarships (Institutional) Farris Field

Mandatory Transfers Radio Station

Debt Service Post Office

Non-Mandatory Transfers Parking Facilities

To Plant

To Auxiliary

To Other Funds

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Cash Funds vs. State Treasury Funds• Cash funds are those dollars generated by the operation of the university.

Examples include student tuition and fees, room and board revenue, gate receipts, rental of space, fines, interest earnings, etc.

• State Treasury funds are those dollars funded through the State of Arkansas. These include Revenue Stabilization Act (RSA) and Educational Excellence. There are other State Treasury dollars funded on a one-time basis, such as the General Improvement Funds.

• Cash Funds and State Treasury Funds are both public funds.

• Expenditures from all categories are reported to the state and will soon be available on the UCA website.

Appropriation vs. Funding• Appropriation is the legislative authority to spend money up to a set amount.

• Funding is based on a statewide formula and available revenue at the state level. UCA is currently funded at 72.4% of what the formula suggests. This is about mid-point for all four-year, public universities, but slightly above the average of 71.1%.

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Annualized Full-Time Equivalents (FTE)This is the number used by the Arkansas Department of Higher Education (ADHE) to input enrollment data into the funding formula. Enrollment for the full academic year is used and is defined in the order of Summer 2, Fall, Spring and Summer I. Inter-sessions and off-schedule Student Semester Credit Hours (SSCH) are also captured during an academic year.   Following state definitions, annualized FTE are computed by adding all the SSCH, dividing the undergraduate SSCH by 30 and the graduate SSCH by 24. 

Looking at FTE by semester vs. annualized does not generate comparable numbers due to the inclusion of summer SSCH.  When FTEs are computed for the fall or spring semesters alone, undergraduate SSCH is divided by 15 and graduate SSCH by 12.  These two different methods of looking at FTE are used in different ways.

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Undergraduate Students

I’m taking 6 hours as well.

Headcount vs. FTEHeadcount is simply a count of how many students are enrolled in a given period of time, regardless of how many hours in which they are enrolled.

FTE is the number of students who are enrolled in enough credit hours to be considered full-time students. For Undergraduate students, this would be a minimum of 15 hours. For Graduate students, this would be a minimum of 12 hours.

In the example to the left, the headcount would be 3 and the FTE would be 1.

I’m taking 3 hours this semester.

I’m taking 6 hours this semester.

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STATE FUNDING PER ANNUALIZED FTE2001-02 TO 2010-11

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COLA Increase SummaryBase Salaries COLA Salary Increase Fringe Rate Fringes Total

E&G Total 58,739,188 1% 587,392 31% 182,091 769,483 Auxiliaries Total 5,325,982 1% 53,260 31% 16,511 69,770 Grand Total 64,065,170 640,652 198,602 839,254

Base Salaries COLA Salary Increase Fringe Rate Fringes Total E&G Total 58,739,188 2% 1,174,784 31% 364,183 1,538,967 Auxiliaries Total 5,325,982 2% 106,520 31% 33,021 139,541 Grand Total 64,065,170 1,281,303 397,204 1,678,507

Note: Additional funds would be needed for promotions and equity adjustments.

As of 10-11-2011

Example – Potential Revenue Generated from Tuition Increases

Percent Increase

New Per Hour

AdditionalRevenue

1.00% $ 181.35 $ 484,475 $1.80 Per Hour Increase

$27.00 Additional expense per semester for a student taking 15 hours

Note: The assumption is based on annualized FTE and flat enrollment (FY12 numbers).

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* Current year tuition & fee revenue is projected to surpass the budget. The base budget will continue to be the foundation for building the FY13 budget. 22

Proposed BudgetFY13 Compared to FY12

FY12 Rev. Base FY13 Proposed Change%

Change% of

Budget1 Tuition & Fees 67,620,309 67,620,309 - 0.00% 42.06%2 Appropriations 56,393,905 56,705,551 311,646 0.55% 35.27%3 Sales & Services 57,185 57,185 - 0.00% 0.04%4 Organized Activities 222,793 222,793 - 0.00% 0.14%5 Grants & Contracts 115,000 115,000 - 0.00% 0.07%6 Other Sources 1,093,421 1,093,421 - 0.00% 0.68%7 Total E&G Revenue 125,502,613 125,814,259 311,646 0.25% 78.26%8 Auxiliary Income 34,129,297 34,952,622 823,325 2.41% 21.74%9 Total Income 159,631,910 160,766,881 1,134,971 0.71% 100.00%

10 Salaries & Wages 71,280,400 71,671,014 390,614 0.55% 44.37%11 Benefits 20,528,213 21,231,469 703,256 3.43% 13.14%12 M&O 28,649,160 29,152,787 503,627 1.76% 18.05%13 Fee Waivers 4,883,731 4,883,731 - 0.00% 3.02%14 Scholarships 17,418,295 17,474,451 56,156 0.32% 10.82%15 Purchased Utilities 5,236,907 5,236,907 - 0.00% 3.24%16 Debt Service 7,740,258 7,731,236 (9,022) -0.12% 4.79%17 Transfers 3,894,946 4,152,180 257,234 6.60% 2.57%18 Total Expenditures 159,631,910 161,533,775 1,901,865 1.19% 100.00%

- (766,894) (766,894)    

* Current year tuition & fee revenue is projected to surpass the budget. The base budget will continue to be the foundation for building the FY13 budget. 55

SBAC Budget Priorities Recommendation for FY2013 One-Time Continuing

Rank Expense Expense Description Division1 994,920 Disaster Recovery Finance and Administration2 134,930 * Faculty step raises with promotion & advancement Academic Affairs3 81,000 * Nursing MSN (196,180 revenue generated) Academic Affairs4 2,350 48,101 Asst. Dir. Transfer Services Enrollment Management5 80,364 ECSE-UACCM program ($96,957 revenue generated) Academic Affairs6 80,000 Disability Support Services contingency Student Services7 282,000 * SEM team of consultants Enrollment Management8 19,076 Faculty replacements Academic Affairs9 100,000 UTEACH (matching funds for grant) Academic Affairs

10 48,576 Senior Chemist/Program Coord Academic Affairs10 5,000 125,450 EBI Map-Works and GradesFirst Enrollment Management11 75,590 25,468 EPIC Academic Affairs12 10,000 Travel funds Advancement $ 1,359,860 $ 752,965

Total $ 2,112,825

* Included in proposed base budget for FY13; faculty step-raises and Nursing MSN funded through Provost Fund; SEM consultants funded on base transfer from Univ./Gov. Relations to VPEM. Notes: Presented by division heads and ranked by the Strategic Budget Advisory Committee The COLA was addressed separately from this priority list

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Chart of Other Funds – for Purposes Outside Annual Operating BudgetSources

Restricted Loan Endowment Plant Agency Unexpended Plant R&R Debt Retirement Invested in Plant

(*CPS line 11) (CPS line 12) (CPS line 13) (CPS line 14) (CPS line 15) (CPS line 16) (CPS line 17)External granting agencies

Interest on loans Donors Transfers from other funds

Transfers from Auxiliary Units

Mandatory transfers from E&G and Aux. in the form of debt expense

No cash; just bricks and mortar, equipment and other physical plant assets

Student Activity fee

Federal capital contribution

Interest revenue Bond proceeds during the project

Proceeds from bonds issued to cover required sinking fund

Dues

Fund raisers

UsesRestricted Loan Endowment Plant Agency

Unexpended Plant R&R Debt Retirement Invested in Plant Funds restricted by outside entities

Perkins student loans (NDSL)

Baldridge trust (real estate)

Capital project accounts

Housing Debt paid from this fund from transfers from appropriate accounts

Buildings Greek accounts

Federal grants/contracts

Crow Major building or renovation accounts

Student Center Land Departmental clubs

State grants/contracts Deferred maintenance accounts

Student Health Infrastructure

Private grants/contracts

Capital carryover accounts

College Square Library Holdings

Property acquisition Food Service Equipment

BOT fund HPER Accumulated Depreciation

Farris Fields Housing

Furniture & Fixtures

* CPS = Cash Position Statement 27

Deferred and Critical Maintenance List

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UAF UALR UCA ASU SAU HSU ATU UAM UAPB UAFS $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000 $7,553

$7,343 $7,332 $7,180 $7,146 $6,984

$6,528

$5,560 $5,517 $5,436

FY13 Tuition & Fees

Source: Schedule 18-1, compiled 5/14/12

FY13 Total Cost Comparison – Tuition/Fees, Room & Board

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UAF ASU UALR UAFS UCA HSU UAPB SAU ATU UAM $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000 $15,255

$13,880 $13,803

$12,834 $12,602 $12,396 $12,047 $11,970

$11,530 $10,620

Residence Hall (Double Occupancy) Board Rates (comparable to UCA's unlimited plan)Tuition/Fees

Source: Schedule 18-1, compiled 5/14/12; UCA Housing Office