Lauren Glase
Artifact 3 – 3
Artifact 3 – 3
Higher Education School Finance
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This artifact was developed in the class, School Finance during the Spring 2009 semester
with Dr. Thomas Valesky. I also sought the help the Office of Graduate Studies.
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I researched the way universities in Florida generate their revenue and sat down with our
office to see how our department handles its budget.
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This paper addresses Standard 3: Managing the Learning Environment from the Florida
Educational Leadership Standards and the performance substandards that apply.
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I learned that all the Florida universities receive state appropriations each year and that it
is s substantial amount of their budget. I also learned the other ways universities receive
money. Universities have to follow a clear cut system of steps to report their needed
budget to the state and for the state to appropriate their funds. It was also interesting
hearing Debora talk about the Graduate Studies budget and how we ask for budget
increases. She also gave me a working budget as an example, which is the next artifact.
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Lauren Glase
School Finance
April 3, 2009
Higher Education PBL
Part 1.
Introduction
The State University System (SUS) of Florida is made up of eleven universities. The
SUS is considered a state agency, so it receives state appropriations every year. According to the
FGCU Financial Audit… (2008), at FGCU, general state appropriations constitute 31.6 percent
of the total operating and non-operating revenues. This money is, therefore, very influential in
determining the University’s activities. Other operating revenues include net tuition and fees,
federal grants and contracts, state and local grants and contracts, nongovernmental grants and
contracts, and sales and services of auxiliary enterprises. Other non-operating revenues include
federal and state student financial aid, investment income, and interest on capital asset-related
debt. Capital appropriations are another source of revenue, but in a different category. A
University may also receive capital grants, contracts, donations, and fees (FGCU Financial
Audit…, 2008). This money is solely used for remodeling, renovation, maintenance, repair and
construction of facilities.
State Appropriations for Operating Revenues
The first step in the allocation of Educational and General Revenue appropriations from
the state is the Legislative Budget Request (LBR). The Board of Governors (BOG) retains the
responsibility of the development of the LBR. The State University System… (2008) states that
in conjunction with the SUS Strategic Plan, the BOG and the individual universities’ Boards of
Trustees jointly manage the system to meet critical needs of the state (State University
System…, 2008). The 2008 Florida Statutes (2008) showed that the universities must prepare an
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expenditure analysis, operating budgets, and annual financial statements in a standard financial
reporting procedure and format dictated by the BOG (The 2008 Florida Statutes, 2008).
According to the State University System…(2008), the SUS has a clear cut system of steps for
state appropriations. The SUS submits a budget request for operations approved by the BOG.
The BOG staff reviews the LBR and continues discussions with the universities. After the
legislative budget request is approved by the BOG, it is submitted to the Governor for review.
Once the Governor makes his formal recommendations, he sends it to the Legislature. The
Legislature allocates funds based on planned enrollments and program cost categories for each
university. They may make changes, then a general appropriations act is passed. After this, the
funds must be allocated to the individual budget units of SUS. It is then up to each university to
allocate the funds internally. (State University System..., 2008).
State Appropriations for Capital Outlay Funds
Requesting capital outlay funds for a facility is not as extensive as requesting the state
appropriation funds for operations. Specific statutory provisions call for the submission of a
SUS Five Year Capital Improvement Program and a Three Year PECO Project Priority List.
According to the Legislative Budget Request Process (2009), the Five Year Capital Improvement
Program is developed by universities in response to their individual institutional space needs and
the SUS Strategic Plan. The individual projects are listed in priority order. The BOG staff as
well as a SUS Capital Construction Committee reviews the proposed projects, consolidates them,
and submits them to the Governor and Legislature. The Three Year PECO Project Priority List
is the SUS Legislative Budget Request for Academic and Support facilities. The Commissioner
of Education allots an amount each year based on the PECO funds available. The BOG approves
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it, submits it to the Commissioner of Education, and then sends it to the Governor and
Legislature (Legislative Budget Request Process, 2009).
Part 2a.
Most of this information was found in The Budget Process of the University System
(2009). The budget process for universities, specifically FGCU, begins at the department level at
each university every spring. Each department manager determines their department’s budget
for the next fiscal year using the previous year as a base. They also take into account both the
University and their own department/college strategic plan. The departments then submit their
budget determinations to their Vice President and also give a copy to the budget office. After the
Vice President reviews the budgets, the Executive Staff (the President, and the respective Vice
Presidents of Academic Affairs, Administrative Services, and University Relations) discuss and
review the requests for the university as a whole. Next, the Executive Staff determines the final
operating budget and it is entered into data files as well as the State Automated Management
Accounting Subsystem (SAMAS). After submission to SAMAS, the Board of Governors is able
to review the data for accuracy and compliance. Once approved by the Board of Governors, they
generate a detailed report which outlines the staffing and operating budgets of the University.
The department budgets are comprised of various categories including, but not limited to;
salaries, other personnel services, expenses, and operating capital outlay. Each of these are
budgeted under individual department accounts. The University Budget Office is responsible for
monitoring the overall operating budget and makes sure that the total authorized budget doesn’t
exceed the total value of funds allocated. The budget is broken down into budget entities, as
instructed by the Legislature, which helps to report and control revenues and expenditures. The
seven categories include: education and general revenue, contracts and grants, auxiliaries,
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activity and service fees, concessions, financial aid, and intercollegiate athletics. The largest
source of funding comes from the education and general revenues unit and it includes the state
appropriated funds, state revenues such as sales tax, educational enhancement from the state
lottery, and incidental revenue trust fund from tuition and fees. Contracts and grants include the
research funds received from federal, state and private sources. This category does not require
the Legislature or Governor’s approval. Auxiliary enterprises are self-supporting activities that
enhance the university, such as the bookstore. This budget process is similar to contracts and
grants.
***On a personal note, I believe FGCU needs to update its materials on funding because it still
lists the Board of Regents in the place of the Board of Governors. The Board of Governors took
the Board of Regents responsibilities as of 2001, so the information available on the Office of
Administrative Services website about FGCU funding is outdated.
The Office of Graduate Studies Budget (Please see Excel Sample Budget also attached)
I looked over the FGCU Office of Graduate Studies’ budget with Debora Haring, our
budget manager, and she explained to me in more detail how the budgets are developed within
departments. She said before the fiscal year ends, the department sits down and determines
priority items for the next year’s budget. Debora said that budget decisions are made based on
history and the strategic plan.
Graduate Studies at FGCU is growing, so it is important that we get money for marketing
and recruitment initiatives. It is essential that recruitment is properly funded because the
students we recruit help strengthen our graduate programs. An increase in tuition waiver monies
and graduate assistantships would be on our priority list because, in alignment with our strategic
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plan, we hope to increase our recruitment of talented students outside the five county area. We
would also ask for an overall increased operating budget due to the increasing number of
prospective and current graduate students we are servicing. The more students we service, the
more copies, printing, faxing, telephone calls, mail, etc.
The Office of Graduate Studies’ budget is divided into sections. Debora reviews these
financial statement summaries every month to make sure we are on track with our budget. She
said the important categories, the ones I should be concerned with are:

Salaries & Benefits
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OPS
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General Operating Expense Pool
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Chargeback Pool
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Travel Pool
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Capital Expenditures Pool
The Salaries and Benefits category includes the salaried office personnel funding.
Human resources is in charge of these numbers, so our office can’t do anything with them.
Debora is in charge of the Other Personnel Services (OPS) allotment which includes staff paid
through OPS. She reviews the OPS budget and approves their pay periods. Most of our budget
is located in the General Operating Expense Pool. This includes money for advertisements,
office supplies, conferences, our Office Depot account, etc. The Chargeback Pool involves
copies made on our copy machines, printing, telephone calls, and postage. Our Travel Pool
includes travel to conferences and meetings in state and out of state. Lastly, the Capital
Expenditures Pool includes items that were purchased that exceeded $1,000, our limit on item
purchases.
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References
FGCU Financial Audit for the Fiscal Year Ended June 30, 2008. 2008. FGCU Office of
Administrative Services Web site. Retrieved on March 30, 2009 from
http://www.fgcu.edu/AS/Finance/Files/Financial_063008.pdf.
Legislative Budget Request Process. 2009. FGCU Budget Office Web site. Retrieved on March
30, 2009 from http://admin.fgcu.edu/budget/SUS%20Budget%20Process.html.
State University System 2009-2010 Legislative Budget Request Development Board of
Governors’ Policy Guidelines. 2008. Board of Governors Web site. Retrieved on March
30, 2009 from http://www.flbog.org/about/_doc/budget/budgetrequest/20092010/200910%20LBR%20Guidelines%20FINAL4-1-2008.pdf.
The 2008 Florida Statutes. 2008. Florida Legislature Web site. Retrieved on March 30, 2009
from
http://www.leg.state.fl.us/Statutes/index.cfm?mode=View%20Statutes&SubMenu=1&Ap
p_mode=Display_Statute&Search_String=university+funding&URL=CH1011/Sec90.HT
M.
The Budget Process of the University System. 2009. FGCU Budget Office Web site. Retrieved
on March 30, 2009 from
http://admin.fgcu.edu/budget/working%20copy%20net.html#Sec1.
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