BUDGET
101
New Department Chair Orientation
August 15, 2014
Diane S. Stephens, Associate Vice President
Department of Academic Resources and Planning
California State University, Northridge
Today’s Agenda
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Introductions
California and CSU Budget Process
CSUN Budget
Fund Accounting Overview
Budgeting in Academic Affairs
Best Practices for Managing Budgets
Discussion Throughout!
Today’s slides: http://www.csun.edu/academicresources-planning/budget-presentations
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California and CSU Budget Process
State and CSU
• State and CSU focus on incremental budgeting – changes
to base budget
• CSU Board of Trustees presents support budget request
to Department of Finance & Governor (November December)
• Governor submits budget request to legislature by
January 10th
• May revise of State & CSU budget to reflect April tax
receipts
• Legislature approves state budget by June 15 for
Governor sign off & July 1 implementation—sometimes!
http://www.calstate.edu/budget/2005_06BudIndex/SupportBdgt_Book2/Budget_2.pdf
The CSU/California Budget Process
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State and CSU
http://www.calstate.edu/budget/fybudget/2013-2014/documentation/budget-cycle-chart.shtml
The CSU/California Budget Process
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July – September for campus/CSU support budget
development
October – November: BOT support budget
review/submit to Department of Finance
January 10th – Governor releases budget
January – May: Lobbying for CSU
May Revise for State & CSU
August FIRMS budget submission for CSU
(jump off to start cycle again)
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CSUN Budget
CSUN appropriation and tuition
trends
(in millions)
$350
$300
$91
$103
$140
$177
$179
$175
$128
$250
$200
$195
$194
$150
$149
$167
$142
$131
$100
$107
Tuition Fee Revenue
$50
General Fund Appropriation
$2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
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CSUN Tuition Fee Revenue and Support
Appropriation Shift
2013-14
2007-08
General
Fund
Support
40%
Total Fee
Revenues
35%
General
Fund
Support
65%
Total Fee
Revenues
60%
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Total Campus Operating Revenue - $500 Million
Assoc Students
$7,638,500
University Student Union 1.5%
$12,638,788
Foundation 2.5%
$7,800,000
1.6%
Grant & Contracts
$28,500,000
5.7%
The University Corp
$16,951,977
3.4%
Health Facilities Fee
$236,343
Parking
$9,287,261
2%
Housing Operations
$21,118,504
4%
Extended Learning
$35,987,539
7%
North Campus
$532,500
.1%
Lottery
$2,209,000
.4%
IRA
$1,967,700
.4%
VPAC
$2,260,563
.5%
State Appropriation – GF
$141,659,296
28.3%
Other Student Fees - GF
$15,342,850
3.1%
Tuition Fee Revenue - GF
$195,994,412
39.2%
Our Campus Partners
Self-supporting Enterprise entities include:
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Tseng College of Extended Learning ($36M revenue)
Housing ($21M)
Parking ($9M)
Health Facilities ($200K)
Incorporated Auxiliary entities—501(c)(3)
include:
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–
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The University Corporation ($35M)
University Student Union ($10M)
Associated Students, Inc ($7.6M)
North Campus ($.5M) & Foundation ($8M)
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Campus Lottery Funding
• The campus receives about $2.2 million per
year in Lottery funding which is distributed to
both Academic and Student Affairs
General Fund Operating Revenue- $353 Million
Other Student Fees
$15,342,850
4%
State Appropriation
$141,659,296
40%
*65% in 2007-08
Tuition Fee Revenue
$195,994,412
56%
CSUN Student Fees
Other Student
Fees
$15,342,850
4%
State
Appropriation
$141,659,296
40%
Tuition Fee
Revenue
$195,994,412
56%
State Appropriation
$ 141,659,296
40%
Tuition Fee
Non-Resident Fees
Doctoral and Business Grad Fees
Tuition Fee Revenue
$ 174,396,000
$ 18,900,000
$ 2,698,412
$ 195,994,412
56%
Other Student Fees
Application Fee
Campus Quality Fee
Health Services Fee
Augmented Health Fees
Misc Student Fees
Total Other Student Fees
$ 1,500,000
$ 7,829,300
$ 4,250,550
$ 1,193,000
$
570,000
$ 15,342,850
4%
Total Operating Fund Revenue
$ 352,996,558
Budget Planning Challenges
• CSU and State Directives for Enrollment
• Commitment to Access
• Impact from Other CSU Campus’ Enrollment
Practices
Budget Considerations
• Enrollment growth
Faculty positions
Staff support
Operating expenses and equipment
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Deferred Maintenance
Capital Planning
Technological Changes & Upgrades
Faculty Attrition
Retirement and Benefits
CSUN General Fund Budget Planning
• CSUN budget preparation (multi-year based on
Governor’s four year commitment)
• Forecast tuition fee revenues by incorporating
enrollment targets
• Estimate mandatory and centrally managed fund
increases
• Budget request process tied to strategic
initiatives
• University Budget Planning Group (UPBG) and
Executive review and discussions
Current Planning Environment?
University Budget News Website:
http://www.csun.edu/campusbudgetnews
Fund Accounting Overview
Typical Funds in Academic Departments
• Fees in Trust/General Fund (appropriations,
allocations, and fee revenue) – 48501
• State Trust Fund (includes ExL MOU
revenues, IRA, etc.) – 496XX, 44XXX,etc.
• Lottery Funds – technically State
Trust…but…!
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Typical Funds in Academic Departments
• Auxiliary Funds (separate 501(c)(3) entities)
– Corporation
– Foundation
– Others (not held in departments)
• Campus Quality Fee
– Course materials
– Technology
– Student support
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General Fund Reminder
• Two major funding groups in the General
Fund:
– Base budget funding
– One-time funding
• Carry-forward balances
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Budgeting in Academic Affairs
CSUN Policy on Fiscal Responsibility
Ensure that:
– Expenditures don’t exceed available resources
– Funds expended for intended purposes in appropriate
time period
– Use internal controls to protect from misuse
– Correctly classify receipts and expenditures
– Comply with campus policies
http://www.csun.edu/sites/default/files/300-45.pdf
The Decentralized Model Principles
• Communication and Disclosure
– ERC Recommendation
– College Budget Model
– Clarity of Business Practices
– Facilitate Sharing of
Information and Open
Communication
• Balanced Budgets
• Meet FTES Targets
• Continuity/Consistency of
Practices
• Defensible Systems (audit
readiness)
• Accountability
ERC Recommendation - 1999
• Open budget reporting and consultation process
 Resources and allocations for all departments,
centers, and programs
• Contingency funds
 Maintain
 Communicate to department chairs
What CAN We Control?
Focus on savings:
• Part-time faculty budgets (often controlled
by Deans’ offices)
• Operating expenses—we can ALL do our
part
• Bulk purchasing (take advantage of
scale economies)
• Defer expenses
• Eliminate unnecessary expenses
(efficiency)
• Share costs with others (“Let’s make a
deal!”)
Determination of College Budgets
• Prior year base budget
• Budget adjustments (attrition,
new hires, FTES increase funding,
planned reductions)
• Salary increases
• Non-General Fund resources
• Lottery budget
• Extended Learning
partnerships
• Grants and contracts
College Budget Workbook
• Budget summary—all funds
• General Fund budget allocations
(departments)
• Department General Fund operating expenses
• Salary worksheet
• Part-time faculty budget model
• Supplemental income from leaves and
transfers
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Salary Worksheet
Why It’s Important to Track Salary Costs:
• Academic Affairs—Salaries make up about 88% of
General Fund Expenditures
• Eight Colleges:
– Salaries make up 92% of General Fund expenditures overall
– Salaries range from 85% to 96% of General Fund
expenditures among the eight colleges
• Salary costs fluctuate—A LOT!
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Department Budgeting
• Part-time faculty costs
• Supplemental income from leaves and transfers (if
applicable—may be an offset for college allocation of
PTF to departments)
• Instructional support salaries (TA, GA, SA)
• Operating expenses
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Supplies and services
Equipment
Travel/professional development
Contingency
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BEST PRACTICES
Generating and Using the Right Information
Best Practices
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Effective scheduling
SOC worksheet
Monthly reconciliation
Line item budgeting at departmental level
External funding
Contingency planning
“Wish list”
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Effective Scheduling
• Effective use of physical, fiscal, and
human resources
– Effectively deploy tenured and tenure-track faculty
in order to maximize enrollments using “fixed costs”
– Minimize part-time faculty and other short-term
salary costs--limit “variable” costs and reassigned
time
– Monitor/eliminate “low enrolled” sections
– Space utilization with University growth
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Schedule of Classes (SOC) Worksheet
• Schedule of Classes Worksheet
– Both a PLANNING and REPORTING tool for
Department Chairs
– Combines data from multiple systems
– Combines in worksheet that allows for:
• Scenario-building (“What If…?”)
• Determining cost of planned schedule
• Analyze use of resources to achieve FTES target and
support program priorities
• Modeling new program costs
– Users at multiple levels
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SOC Worksheet
Subject
Catalog
Class Nbr
CCU
C/S #
Room
SubjectInstructor
Class Nbr
Catalog
100
10180 1
4 AC210
ART
ART 100
ART 100L
ART 100L
ART 243
ART 244
ART 244
ART 245
ART 250
ART 250
ART 484
ART 484
10181
10186
10187
18097
18098
18099
18100
18148
18149
11304
11305
1
2
2
3
3
3
3
3
3
1
1
4
7
7
7
7
7
13
36
36
36
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AC210
AC210
AC210
AC407
AC407
AC407
AC407
AC334
AC334
AC211
AC211
Days
Hoban, James
Curr.
Enroll.
Instructor
Base Salary
FTES
Current
WTU
Current
FTEF
Current
2.7
1.0
0.07
$
2,075
6
40
3.9
2.6
0.17
$
4,894
6
35
4.3
2.6
0.17
$
4,894
6
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PTF Expenses
Current
Proj Enroll
FTES
WTUCurr.
FTEF
PTFProg
Expenses
Code
Start
Base
Salary
Fac
CCU C/S # Room
Days CurrentEnd Time
Instructor
Current
Current
Time$ 4,706 PCurrent
MW 800
825 29 Wright, Frank Lloyd
1.9Enroll.
1.0
0.07
$
1,882
6
35
MW
TR
F
TR
MW
TR
TR
MW
MW
W
M
ART
100 Frank
10180
Wright,
Lloyd1
ART 100
10181 1
Olmsted, Frederick
ART 100L 10186 2
Wright, Frank Lloyd
ART 100L 10187 2
Wright,
Lloyd3
ART
243 Frank
18097
TOTALS:
Start
End Time
Time
1100
825
900
1400
800
1100
800
1100
1400
1600
1600
1125
1005
1220
1645
1045
1345
1045
1345
1645
1650
1650
40
29
32
28
25
26
27
5
10
7
8
Olmsted, Frederick
Wright, Frank Lloyd
Fac
Wright, Frank Lloyd
Hoban, James
Hunt, Richard M.
Sullivan, Louis
Lamb, William
Van Alen, William
Lamb, William
Gilbert, Cass
Van Alen, William
AC210
$44,706
AC210
$45,188
7 AC210
$ 4,706
7 AC210
$74,706
AC407
266
$ 3,458
$
$
$
$
$
$
$
$
$
$
$
5,188
4,706
4,706
3,458
2,757
3,550
3,822
7,451
3,822
4,000
5,285
MW
800
P
1.9
MW 1100
P
2.7
TR
825
P
3.9
F
900
P
4.3
TR
1400
F
5.6
P
P
P
F
F
P
P
F
P
P
F
8251.0
5.6
5.0
1125 5.2
1.0
1005 5.4
1.0
2.6
1220 2.0
0.5
2.6
1645 0.5
37.9
3.9
293.9
3.9
403.9
293.9
1.7
323.3
2.3
282.7
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Wright,
Frank
0.33
$
2
30
0.07
$ - Lloyd
1,882
0.33
$
2
20
Olmsted,
Frederick
0.26
$
2
20
0.07
$5,538
2,075
0.26
$
5,962
3
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Wright,
Frank
Lloyd
0.14
$
4
15
0.17
$
4,894
0.22
$
5,096
4
25
Wright,
Frank
Lloyd
0.16
$
3,733
1
15
0.17
$
4,894
0.22
$
1
5
Hoban, James
2.39
$ 34,076
310
0.33
$
-
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SOC Worksheet = Planning + Priorities
Subject
Catalog
Title
Class Nbr
Proj Enroll
PROJECTED
Prog Code Program Priorities / Categories
% Dept.
PTF Exp
$ 8,000
1
Required Grad. & U.D. Majors Courses 15.8%
38.1% $ 5,538
10.9% $ 5,962
2
Required L.D. Majors Courses
15.1% $ 12,740
3
Required Service Courses
0.0% $
20.1% $ 13,746
4
High Priority Elective Courses - Majors 0.0% $ $ 45,986
LowerDESIGN
Priority
-20Majors
ART 5244 GRAPHIC
I Elective
18098 Courses
2
G.E. Courses
ART 6244 GRAPHIC
DESIGN I
18099
2
20
ART 7245 GRAPHIC
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OtherDESIGN
. . . I 18100 3
ART 250 PHOTOGRAPHY I
18148
4
15
TOTALS
Prog Code
Prog Code Program Priorities / Categories
FTES % Dept. WTU % Dept. FTEF
1
Required
MajorsART
Courses
15.2%350.47
ARTGrad.
100& U.D.
INTRO
PROCESS 1 101803.0% 6 7
2
Required L.D. Majors Courses
14
31.3% 12
35.7% 0.91
ARTService
100 Courses
INTRO ART PROCESS 7 10181
3
Required
15.7% 6 4
11.9%400.26
4
HighART
Priority100L
ElectiveART
Courses
- Majors LAB
8 10186
17.9% 613
15.2%350.97
PROCESS
5
Lower Priority Elective Courses - Majors
0
0.0% 0
0.0% 0.00
6
G.E. ART
Courses100L ART PROCESS LAB
1410187
32.1% 6 7
22.0%350.48
7
Other
. . . 243 INTRO TO TYPE
0 18097
0.0% 2 0
0.0%300.00
ART
TOTALS 45
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3.09
ART 250 PHOTOGRAPHY I
ART 484 ART ED PORTFOLIO
ART 484 ART ED PORTFOLIO
18149
11304
11305
4
25
1
15
1
5
% Dept.
17.4%
12.0%
13.0%
27.7%
0.0%
29.9%
0.0%
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Monthly Reconciliation
• PeopleSoft Tools
– nVision® Management Reports
– General Ledger (GL) Inquiry Panels
• Timely review of expenditures
• Reconciliation training
– University Financial Assistants
(UFA)
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Line Item Budgeting at Departmental Level
• Ability to track expenditures against budget by category
using existing tools (PeopleSoft) with minimal effort
• Comparison of original plan versus actual at fiscal yearend
• Resources:
– http://www.csun.edu/sites/default/files/sf-coaguide.pdf (See Chart of Accounts Reference Guide)
– Most colleges and areas have a reference guide for
most commonly used chartfield strings
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External Funding
• Grant and contracts
• Tracking and processing reimbursed time in timely
manner
• Emphasis on growing external funding as State
support declines
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Best Practices
• Contingency planning
• “Wish list”
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Discussion and Questions
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Contact Information
• Diane Stephens
– diane.stephens@csun.edu
– Ext. 5929
• For a copy of this presentation:
http://www.csun.edu/academic-resourcesplanning/budget-presentations
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