February 20, 2014

A. UNCW Budgeting – operationalizing our strategic
decisions

B. UNCW Financial Resources

C. UNCW / State Budget Processes

D. University Budget Management
2

Changes to the way we approach budgeting?
 Dr. DePaolo
 Dr. Miller
 Unified Budget Process – Operationalizing our strategic decisions
 The future …
3
“I am committed to a budget process that is about
strengthening trust, reflecting our values and
producing outcomes. Our resources – human,
physical and financial – are the primary tools for
achieving our vision.”
Rosemary DePaolo
4
 On September 20, 2006 Chancellor DePaolo appointed
the “Task Force on University Budget Processes”
 Comprised of 10 representatives from faculty, staff and
students, was charged to :






Examine current budget practices
Review methods of decision making
Consider accountability measures
Engage the broader campus community
Ensure link between budgeting and planning
Ensure that allocations are strategic
Key Item !!!
5
 Prior to 2003 UNCW did not have a definitive set of strategic
goals




Individual divisions set their own
Goals varied year to year
Goals were not always communicated to employees within a division
No ties to resource allocation
 Budget requests were “silo’d”






Limited cross-divisional requests / ties to strategic planning
No systematic prioritization
Limited multi-year vision
No assessment/feedback/accountability
Limited campus input
No standardization
6

We needed to do the following:
 Understand the role of individuals/groups in the budget process
 Understand what types of funding the University receives
 Understand the different budget processes and which process affects
which type of funding
 Communicate to and educate the campus to gain buy-in at every level of
the process
 Provide feedback, assess and evaluate whether our strategic goals are
being met in the most efficient means possible
7
Innovations are new approaches
demonstrating significant improvement in
accepted measured outcomes (e.g.,
productivity, learning, etc.) that save money
and time.
Chancellor Garry l. Miller
October 2011
8
Slide 4 – Current planning environment
(from working paper)
9

University Innovation Council (UIC)
 Vigorously mine ideas for innovation among all university programs;
 Develop and analyze candidate innovations including incentive strategies and
make recommendations to the Cabinet and Chancellor about promising
innovations that improve the quality of our programs and save money and time or
increase revenues.
 The work of the Council will be supported by a technical support group.
 The Council will work closely with the University Budget Committee in developing
recommendations.

University Budget Committee (UBC)
 Supports the budget process by analyzing the financial viability of all budget
requests and working with the Vice Chancellor of Business Affairs on other
matters related to the financial operations of the university.
 The University Budget Committee will review all recommendations from the
University Innovation Council.
10
11
Strategic decision
(Ex: Grow Health Degrees Programs)
Operationalize decision (Unified Budget Process)
Implement decision
Assessment

UNC’s long-range planning is guided by a set of
strategic directions recommended by BOG and
President

Likewise, UNCW is using strategic directions as a
foundation for current and future priorities, resource
planning and allocation, program development, review
and refinement of our missions

The Unified Budget Process fuels the achievement of
these strategic decisions.
University Analytics
12 cell matrix
Strategic
Planning
Program
Development
Budget
Development
Resource
Determination
Budget &
Enrollment
Planning
Enrollment
Management
Unified Budget Process
Allows university budget planning to
incorporate all funding sources into the
evaluation in order to optimize the allocation of
funds by source.
Results fed back into strategic planning process
Assessment

Maintain academic excellence and improve national rankings

Focus on strategic goals

Include faculty and staff in the planning process



Increase mission-supporting revenue streams wherever
possible
Advance our commitment to innovations, including
reorganization and new work strategies
Reduction and allocation decisions are evidence-based
using available analytic tools



UNCW operates on the State of North Carolina biennial
budget cycle
The university conducts “budget calls” for eight (8) different
budget cycles
Externally managed:
◦ Office of State Budget and Management (OSBM)
◦ UNC General Administration

Internally Managed:
◦ University Budget Office
 constant external budget compliance and reporting
responsibilities
 designed around these external requirements

External Budget Cycles
◦
◦
◦
◦
◦
◦
◦
◦
Biennial Continuation Budget
Biennial Expansion Budget
Biennial Capital Budget
Supplemental Budget (mid
term submission)
Campus Initiative Tuition
Increases (CITI)
Mandatory & Non-Mandatory
Student Fees
Summer School Rate Increases
Enrollment Projections

Internal Budget Cycles
◦ University Annual Allocation
Budget
◦ Special Funds Budgets
◦ Faculty and EPA Legislative
Salary Increases
◦ SPA Legislative Salary
Increases



The campus community submits budget requests
appropriate for each budget call
Multiple processes restrict our ability to link
comprehensive allocation decisions to any one
program initiative
The fragmented nature limits our creativity and
collaboration among departments, schools and
divisions

Is responsive to university strategic initiatives, promotes our shared values
and encourages collaboration and creativity

Starting in advance of our external requirements

Connecting our strategic plan to UNC Strategic Directions 2013–2018

Engages the broader campus community

Develop specific (quantifiable) annual objectives for strategic resource
allocation - key to the process !!!
NOTE:
None of our external compliance and reporting responsibilities go away.
Align our work to accommodate our internal plans while still meeting all of
our external obligations
Year 1 of Budget
Development Cycle
Year 2 of Budget
Development Cycle
FY 2013-14
FY 2014-15
 Budgetary Programming - works w/campus to identify programs to meet
strategic direction
 UIC proposes new initiatives that support strategic priorities
 Budgetary programs reviewed / analyzed by Budget Office / UBC - finalize
program budgets
 University Analytics team provides analysis to support
discussions
 Budget Office / UBC identify alternative sources of revenue to
meet decisions
 Cabinet / Chancellor review / prioritize budget requirements
 Enrollment Management Committee develops enrollment
projections
 Cabinet / Chancellor approve enrollment projections
Annual Allocations (Permanent + One-Time Funding)
Biennal Budgets (Continuation, Expansion, Capital)
Enrollment Growth Projections
Campus-Initiated Tuition Increases
Student Fees
Special Funds (Receipt-supported) Budgets
Summer School Increases
Supplemental Budget (2nd Year of Biennial Cycle)
Mid-Year Adjustments < One-Time Allocations >
JUNE
MAY
APRIL
FEB
JAN
DEC
NOV
OCT
AUG
SEPT
JULY
MAY
FEB
MARCH
JAN
MARCH
Calendar year
2015
Calendar year 2014
DEC
NOV
OCT
AUG
 University Planning - identifies strategic priorities for biennium
SEPT
JULY
Calendar year
2013
JUNE
FY 15 - 17 Biennial Budget
APRIL
University Planning, Programming & Budget Calendar
DEFINITION:
“a budget in which the resources
and services are identified by
programs or function and not by
the organizational units involved
in performing all or part of the
program and/or “functions”
Strategic Planning
Campus identifies
strategic priorities for
biennium.
Ongoing initiatives are
evaluated.
University Analytics team
provides analysis to
support discussions and
quantify the goals
Budgetary
Programming
Working directly with
deans and division
directors
-- no longer go thru
divisions for data
Sets out to identify those
programs necessary to
meet the strategic
priorities
Evaluate
Approve
External
Budget Analysis
Budget Office /
University Budget
Committee (UBC)
Analysis and Review of
those programs
identified by Budgetary
Programming office.
Finalize budgets for each
program.
Analyze and identify all
funding sources available
for each program.
Compliance
Cabinet review,
prioritization &
approval
Journey of Learning

Objective 1 – Meet or exceed all institutional goals in the UNC performance
funding measures.
◦
◦
◦
◦
◦
◦
◦
◦
◦
◦

Graduation Rates of NCCCS Transfer Students
Degrees Awarded in STEM and Health Disciplines
Undergraduate Students graduating with University Honors
Energy Efficiency
Annual Giving
6-Year Graduation
Retention
Degree efficiency
Degrees awarded to Pell recipients
Financial integrity index (UNC FIT)
Objective 2 -Ensure that all undergraduates have an applied learning
experience (in research/discovery, internships/application, service
learning/regional engagement, and/or study abroad/exploration away) that
achieves a set of established learning objectives.
Love of Place

Objective 3 – Design and develop proposals for advanced health professional
degree programs responsive to health industry needs.

Objective 4 – Conceptualize, design and fund an industry-linked film
production facility consistent with the addition of a graduate program in Film
Studies.
Power of Ideas and Innovation

Objective 5 – Develop and implement the CREST (Millennial Campus) model with
initial emphasis on meeting MARBIONC partnership targets.

Objective 6 – Enhance the regional entrepreneurial community through the
launch of the Center for Innovation and Entrepreneurship and related
programs.
Additional objectives being proposed:



Research
Graduate programs
Recruit, support, retain faculty, staff, students




Simultaneously we have approached a more strategic use of our onetime state funds
◦ White Paper approved by CFO – March 2013
◦ Implementation in FY 2013-14
As a starting point, chose the following areas:
◦ Need-Based Financial Aid
◦ Maintenance backlog, ADA / DOI requirements
◦ Replacement plan for scientific equipment / software
Allows for future planning (depts know the funds will be there)
◦ Allows for carry forward of any unspent funding (allows for eqpt
purchases that exceed 12 months)
Currently discussing new ideas w/ CFO

In developing strategies, analytics will provide the
scenario and predictive planning to help us choose
between competing priorities

The single most important attribute is shifting our
planning forward one year

We still meet all our external compliance and
reporting responsibilities

Program Budgeting empowers the campus to
engage and focus

The Unified Budget process successfully connects
our planning and budgeting directly to our
resource allocation
 What kind of resources are available to the
university to fund these strategic decisions?
 University Revenues
 Types of Funds
26
Gifts
Investment Income
Additions to Endowments
Other Revenues
2%
1%
1%
1%
Sales and
Services, Net
14%
State Appropriations
32%
Grants and Contracts
20%
Student Tuition and Fees,
Net
29%
27
Budgeted Funds
GENERAL FUNDS
OVERHEAD
TRUST
UNRESTRICTED CONTRACTS
CONTRACT & GRANTS
AUXILIARY
INDEPENDENT OPERATIONS
UNIVERSITY AGENCIES
FOUNDATIONS
ELIMINATION FUNDS
BANK FUND
Fund Type
11
12
13
15
21
31
33
81
82
97
99
Unbudgeted Funds
TRUST
CONTRACT & GRANTS
SCHOLARSHIPS & FELLOWSHIPS
PROFESSORSHIPS
RESTRICTED DEPT USE
RESTRICTED RESEARCH NON-C&G
C & G ACCRUAL
AUXILIARY
INDEPENDENT OPERATIONS
LOANS
ENDOWMENT
TERM ENDOWMENTS
ENDOWMENT
ANNUITY & LIFE INCOME FUNDS
AGENCY
FOUNDATIONS
CAPITAL IMPROVEMENTS
CONSTRUCTION PROJECTS
SPECIAL PROJECTS
DEBT SERVICE
INVESTMENT IN PLANT
Fund Type
14
22
23
24
25
26
27
32
34
41
61
62
63
64
83
84
91
92
93
94
95
28
FOAPAL - Funds
GENERAL FUNDS - DEPARTMENTAL
1XXXXX - 18XXXX
GENERAL FUNDS - RALEIGH BUDGETS
TRUST - DEPARTMENTAL
19XXXX
2XXXXX - 27XXXX
TRUST - OVERHEAD
28XXXX
TRUST - OVERHEAD RALEIGH BUDGETS
289XXX
TRUST - CLEARING ACCOUNTS
299XXX
AUXILIARY
3XXXXX
CAPITAL IMPROVEMENT
4XXXXX
CONTRACT & GRANT
5XXXXX
FINANCIAL AID
6XXXXX
ENDOWMENT
7XXXXX
PLANT FUNDS
8XXXXX
SPECIAL PROJECTS
882XXX
ELIMINATION FUNDS
888XXX
INVESTMENT IN PLANT
890100
OTHER AGENCY FUNDS
9XXXXX
UNCW SPONSORED CONFERENCES
98XXXX
DEPARTMENT OF EDUCATION
99XXXX
NATIONAL SCIENCE FOUNDATION
997XXX
29
Types of Funds
General Funds
Where do Funds Come
From?
State appropriations
Tuition
Utilities
“Other” revenue
What Are They Used For?
Financial resources of the institution that are expendable for annual
operating purposes of the institution (Core Mission and Enabling
Support)
Basic general operating requirements (personnel, supplies &
materials, purchased services, capital outlays, financial aid (needbased).
Overhead Receipts
Indirect costs from grants
Funds that support scholarly development of its faculty, staff and
students or to ensure that the campus infrastructure is supported to
enhance such scholarly activities.
Trusts
Unrestricted gifts,
Interest income,
Student fees
Ed & Tech Fees
Application Fees
Discretionary funds – unrestricted in their use. Support
departmental operations.
Auxiliaries
Student fees,
service charges
Self-supporting activities that support mission of institution and
provide programs and essential services to faculty, staff and
students based on a fee or charge.
30
Other Revenue
1%
Utility Revenue
1%
Tuition
42%
Appropriations
56%
General Fund Revenues (Revised)
FY 2012-13
Appropriations
$96,677,892
Tuition
$71,888,987
Utility Revenue
$2,306,746
Other Revenues
$2,012,564
Total
$172,886,189
SRCI Carry Forward - $1.6M
31
EPA - Non Faculty Salaries
Ops
2%
Faculty Salaries
SPA Salaries
Fin Aid
1%
1%
1%
0%
1%
5%
8%
Benefits
1%
Utilities
Temporary Wages
4%
5%
Purchased Services
Contracted Services
Supplies
Capital Outlays
Other Expenses
37%
17%
Library Books & Media
Financial Aid
MARBIONC Bldg Reserves
17%
32
Permanent Budget (as of 12/31/12)
(Salary Benefits included in Division Totals)
2%
Academic Affairs
Business Affairs
2%
2%
7%
13%
Chancellor
Student Affairs
University Advancement
University Central
74%
33
Types of Funds
General Funds
Where do Funds Come
From?
State appropriations,
Tuition,
Utilities
“Other” revenue
What Are They Used For?
Financial resources of the institution that are expendable for annual
operating purposes of the institution (Core Mission and Enabling
Support)
Basic general operating requirements (personnel, supplies &
materials, purchased services, capital outlays, financial aid (needbased).
Overhead Receipts
Indirect costs from grants
Funds that support scholarly development of its faculty, staff and
students or to ensure that the campus infrastructure is supported to
enhance such scholarly activities.
-- 70/30 split between AA/BA, after C&G Billing Office funded
Trusts
Unrestricted gifts,
interest income,
student fees
Ed & Tech Fees
Application Fees
Discretionary funds – unrestricted in their use. Support
departmental operations.
Auxiliaries
Student fees,
service charges
Self-supporting activities that support mission of institution and
provide programs and essential services to faculty, staff and
students based on a fee or charge.
34
Cash Balances + New Revenues
New Revenues,
$1,650,000
Cash Balances,
$2,931,058
FY 11-12 Excess
Receipts, $49,163
35
Types of Funds
General Funds
Where do Funds Come
From?
State appropriations,
tuition,
Utilities
“Other” revenue
What Are They Used For?
Financial resources of the institution that are expendable for annual
operating purposes of the institution (Core Mission and Enabling
Support)
Basic general operating requirements (personnel, supplies &
materials, purchased services, capital outlays, financial aid (needbased).
Overhead Receipts
Indirect costs from grants
Funds that support scholarly development of its faculty, staff and
students or to ensure that the campus infrastructure is supported to
enhance such scholarly activities.
Trusts
Unrestricted gifts,
interest income,
student fees
Ed & Tech Fees
Application Fees
Discretionary funds – unrestricted in their use. Support
departmental operations.
Auxiliaries
Student fees,
service charges
Self-supporting activities that support mission of institution and
provide programs and essential services to faculty, staff and
students based on a fee or charge.
36
Cash Balances + New Revenues
Cash Balances
(6/30/12),
$11,073,042
New Year Budget,
$15,568,129
37

Cash balance (6/30/12) - $12,098,743

Literally hundreds of these funds
 Department discretionary funds
 Academic support funds

Act like savings accounts
 One-time funds
 If you have the cash you can expend the funds, but not necessarily
replenished
 Unlike budgeted trust – where you can expend before you receive
revenue

Permanent positions cannot be funded in unbudgeted trust
38
Types of Funds
General Funds
Where do Funds Come
From?
State appropriations,
tuition,
Utilities
“Other” revenue
What Are They Used For?
Financial resources of the institution that are expendable for annual
operating purposes of the institution (Core Mission and Enabling
Support)
Basic general operating requirements (personnel, supplies &
materials, purchased services, capital outlays, financial aid (needbased).
Overhead Receipts
Indirect costs from grants
Funds that support scholarly development of its faculty, staff and
students or to ensure that the campus infrastructure is supported to
enhance such scholarly activities.
Trusts
Unrestricted gifts,
interest income,
student fees
Ed & Tech Fees
Application Fees
Discretionary funds – unrestricted in their use. Support
departmental operations.
Auxiliaries
Student fees,
service charges
Self-supporting activities that support mission of institution and
provide programs and essential services to faculty, staff and
students based on a fee or charge.
-- like small businesses
-- programs supported by student fees have restrictions
39
Cash Balances + New Revenues
Cash Balances,
$26,876,259
New Year Budget,
$86,817,199
40

Cash balance (6/30/12) - $14,525,766

Literally hundreds of these funds
 Much the same as unbudgeted trusts
o
o
o
o

SGA clubs and organizations
Health Service programs
Campus Life programs
Ticket revenues
Act like savings accounts
 One-time funds
 If you have the cash you can expend the funds, but not necessarily
replenished
 Unlike budgeted auxiliaries – where you can expend before you receive
revenue
41
Types of Funds
Where do Funds Come
From?
What Are They Used For?
Endowments
Restricted gifts
Financial resources which are limited by donors or other outside
agencies to specific purposes.
Like an investment account -- receive interest income off the invested
principle
Contracts & Grants
Federal, state, local,
non-governmental
Financial resources which are limited by donors or other outside
agencies to specific purposes.
The contract and grants are mostly based on an exchange basis for the
funds received. The granting agency will receive reports or some type of
product for the set amount of funds given.
Scholarships /
Financial Aid
Capital Improvement Funds
Appropriated funds
Non-appropriated funds
Repairs & Renovations
Gifts,
endowment income,
outside awards from state
and federal govt
Financial resources which are limited by donors or other outside
agencies to specific purposes.
State appropriation,
Receipts,
Bonds
Funds for capital improvements, and repairs and renovations of state
facilities and related infrastructure supported by general funds.
Both federal and state financial aid are restricted in that they are given
based on federal regulations for need based awards (FAFSAA).
Repairs & Renovations
-- special projects, roof repairs, ADA/fire safety, roads
Capital Improvements (appropriated)
-- School of Nursing, Teaching Lab
Receipt-Supported Projects (nonappropriated)
-- Union, Fisher Center, Residence Halls, SRC Expansion
42
BREAK
43
 By what process can we fund our strategic decisions?
o Funding decisions made throughout the UBP feed into one,
or more, of these budget cycles
 Budget Processes
 Biennial
o
o




Continuation, Expansion, Capital
Supplemental Budget
Campus initiated tuition increase (CITI)
Student Fees
Summer School Tuition & Fees
Annual Allocation Process
o
o
One-Time funding allocation
Mid-Year Reviews
44
Year 1 of Budget
Development Cycle
Year 2 of Budget
Development Cycle
FY 2013-14
FY 2014-15
 University Planning - identifies strategic priorities for
biennium
 Budgetary Programming - works w/campus to identify programs to
meet strategic direction
 UIC proposes new initiatives that support strategic priorities
 Budgetary programs reviewed / analyzed by Budget Office / UBC finalize program budgets
 University Analytics team provides analysis to support
discussions
 Budget Office / UBC identify alternative sources of revenue to
meet decisions
 Cabinet / Chancellor review / prioritize budget requirements
 Enrollment Management Committee develops enrollment
projections
 Cabinet / Chancellor approve enrollment projections
Annual Allocations (Permanent + One-Time Funding)
Biennal Budgets (Continuation, Expansion, Capital)
Enrollment Growth Projections
Campus-Initiated Tuition Increases
Student Fees
Special Funds (Receipt-supported) Budgets
Summer School Increases
Supplemental Budget (2nd Year of Biennial Cycle)
Mid-Year Adjustments < One-Time Allocations >
MAY
JUNE
APRIL
MARC
H
JAN
DEC
NOV
OCT
SEPT
AUG
JULY
MAY
JUNE
JAN
FEB
Calendar year
2015
Calendar year 2014
FEB
DEC
NOV
OCT
AUG
SEPT
JULY
Calendar year
2013
APRIL
FY 15 - 17 Biennial
Budget
MARC
H
University Planning, Programming & Budget Calendar

Continuation

Expansion

Capital
46
Purpose: Provides general operating funds (state) for each year of the biennium
to continue the existing, authorized level of services.
Timelines: Developed in even numbered years (August – October)
Guidance: Office of State Budget & Management (OSBM) – July / August
UNC-General Administration (UNC-GA) – August / September
Due Dates:
(exact dates vary)
To OSBM (October xx)
To UNC-GA (October xx)
Type Funding: State
What’s Authorized in Request? Inflationary increase to specific line items,
personnel-related items, equipment replacement, specific non-recurring items,
building reserves.
47

Budget submissions to UNC-GA on October 13, 2010
Area of Requests
Staff benefits
FY 2011-12
$479,296
FY 2012-13
$514,807
Longevity, overtime, premium pay, on call
Utilities
Library materials
Vehicles & equipment
Accreditation
Building reserves
0
257,675
533,637
257,675
644,677
180,709
307,045
89,565
567,237
2,194,315
$2,416,731
$3,853,678
Teaching Lab, MARBIONC
Total requests
48

Operating funds for state-supported buildings “on line” within the biennium

FY 11-12
 New construction
 Teaching Lab



Completion: April 2012
Budget Request:
FY 11-12: $297,782 / 17.7 FTE
FY 12-13: $1,378,484
FY 12-13
 New construction
 MARBIONC
 Completion: July 2012
 Budget Request: FY 12-13: $780,241 / 8.7 FTE
49
Purpose: Provides for expansion of existing programs, new programs, and salary increases
and/or benefits for faculty and state employees, to include:
New or Pilot programs,
Continued phase-in of new programs initiated in a previous biennium,
One-time major equipment purchases
Timelines: Developed in even numbered years (August – September)
Guidance: UNC-General Administration – August
Due Dates: To UNC-GA (September) (exact dates vary)
Type Funding: State
What’s Authorized in Request? Varies depending on what the current financial picture is in
the state. Must be programmatic in nature and support the strategic goals of the UNCsystem.
50
UNCW
Priority
UNC Priority
Title
1
Serve the People of North Carolina
Marine Science and Entrepreneurship
2
Set Degree Attainment Goals
Responsive to State Needs
Nursing Bachelor of Science Program –
Accelerated (Onslow)
3
Maximize Efficiencies
UNCW Predictive Analytics
Total
Request
2013-14
Total
Request
2014-15
$1,031,505
$922,905
728,185
411,416
1,047,409
760,259
$2,807,099
$2,094,580
51
Purpose: Provides funding for capital projects, such as land acquisitions., new
construction, rehabilitation of existing facilities and repairs and renovations, as
requested in six-year Capital Improvement Plan.
Timelines: Developed in even numbered years (August – September)
Guidance: UNC-General Administration – August
Due Dates: To UNC-GA (September)
(exact dates vary)
Type Funding: State, Receipts
What’s Authorized in Request? Appropriated capital projects, non-appropriated
capital projects, repairs & renovations
52
Purpose: Off-Year budget submission to General Assembly for “short session” (2nd year of two-year
biennium). Similar to Biennial Expansion Budget process, only in the off-year.
Timelines: Developed in odd numbered years (October - February)
Guidance: UNC-GA: October / November
Due Dates: To UNC-GA: (January / February)
(exact date varies)
Type Funding: State
What’s Authorized in Request?
Varies depending on financial climate at the time. Must be programmatic in nature and support the strategic
goals of the UNC-system.
Often times: UNC-GA will review those items that were in the current Biennial Expansion budget but not
approved by legislature, or were approved only on a temporary, nonrecurring basis.
56
Description
1
Campus
Request
New
Posns
Building Reserves
School of Nursing
Oyster Hatchery
$1,356,062
14.6
288,296
2.2
2
Inflation – Utilities
238,069
3
Inflation - Library Materials
757,725
4
College of Health & Human Services
777,348
5
Student Housing Security Cameras
930,000
TOTAL
$4,347,500
7.0
23.8
57
Purpose:
Tuition is charged to students … and is used to partially defray the costs of general academic and administrative operations of
campuses, including academic programs and faculty and administrative salaries and benefits. (Source: UNC – General Administration Policy
1000.1.1)
Timelines:
Developed annually during summer – fall (August – November)
Guidance:
UNC-GA – October
Due Dates:
To UNC-GA (December)
Type Funding: State
What’s Authorized in Request?
Board of Governor guidance, approved in their November 2010 second “four-year plan for tuition and fees” restricts the use of tuition funding
to the following areas:
•
Need-based financial aid
•
Faculty salaries to get to the 80th percentile
•
Improve library and counseling services
•
Reduce class sizes
•
Increase class section offerings
•
Improve student services
•
Improve the quality of academic experience
Allowable tuition increases reviewed annually by Board of Governors, with a maximum increase of 6.5 percent.
** Draft 3rd 4-year plan under development **
effective 7/1/15
58

Universities authorized by UNC-GA to request increase in institution’s tuition
rate, starting in FY 00-01
 BOG approves, or modifies, CITI tuition increases
o FY 04-05: requested $360 for both in and out of state students
 BOG approved $225 in state and $360 out of state
 No SPA increases authorized
o FY 05-06: BOG approved $225 for all except in state undergraduates
o FY 07/08: cap reduced to 2% growth
o FY 09/10: reduced from 6.5 to 4.3% (1/3) for in-state undergrads
o FY 14/15: President Ross will not support any increases to in-state undergrads
59
Current Rate
Proposed Increase
% Increase
 Undergraduate Students
o In-State
o Out-State
$3,743.00
$15,845.79
$283.00
$316.92
7.6%
2.0%
 Graduate Students
o In-State
o Out-State
$3,879.73
$15,781.26
$283.00
$316.92
7.3%
2.0%
 MBA Students
o In-State
o Out-State
$4,689.28
$16,323.34
$283.00
$316.92
6.0%
1.9%
 MSA Students
o In-State
o Out-State
$4,461.58
$16,323.34
$283.00
$316.92
6.3%
1.9%
For FY 14-15: no increases requested by UNCW
Legislature approved 12.3% increase to non-resident undergrads (+ $1,988)
60
Funding / FTE:
Funding
o University Studies
$147,599
o Graduate Student Support $461,425
o Library
$183,002
o Student Services Support
$89,065
o Financial Aid
$803,361
o Faculty Salaries
$878,497
 Benefits
$177,720
o EPA-NF Salaries/Benefits
$188,810
o Faculty Positions
$584,509
 Total
$3,513,988
%
4.2
13.1
5.2
2.5
22.9
25.0
5.1
5.4
16.6
100.0%
FTE
1.48
n/a
n/a
1.00
n/a
n/a
n/a
n/a
5.50
7.98
FY 13-14: some of the funds were used to meet legislative
reductions
61
Purpose:
Fees will be charged only for limited, dedicated purposes and shall not be used to defray the costs of general academic and administrative
operations of campuses, including academic programs and faculty and administrative salaries and benefits. (Source: UNC – General Administration Policy
1000.1.1)
Consistent with the above citation, the Board (of Governors) will make every effort to keep fees for students as low as possible while providing the revenues
needed to support the purposes for which the fees are charged.
Timelines:
Developed annually during summer – fall (August – November)
Guidance:
UNC-GA – October
Budget Office – August / September
Due Dates:
To UNC-GA (December)
Type Funding: Receipts
What’s Authorized in Request?
•
Mandatory student fees fall into one of four (4) Board of Governors categories:
•
General Fees (Athletics, Health, Student Activities, Ed & Tech)
•
Debt Service (on buildings)
•
Special (we have none)
•
Miscellaneous (Transportation, ASG)
•
Non-Mandatory fees (Orientation, Room & Board, Special Course fee, Transcript / duplicate diploma, mailbox, etc)
•
Allowable tuition increases reviewed annually by Board of Governors, with a maximum increase of 6.5 percent for “General Fees.”
62
Current Fee
2013-14
Increase
$438.55
$538.55
$100.00
Health Services
190.50
190.50
0.00
Student Activities
664.15
664.15
0.00
Educational & Technology
397.50
398.50
1.00
688.00
448.40
(239.60)
0.00
0.00
0.00
$76.00
$76.00
0.00
1.00
1.00
0.00
$2,455.70
$2,317.10
($138.60)
2012-13
General Fees (Part of 6.5% Cap)
Athletics
Indebtedness (Excluded from 6.5% Cap)
Special Fees (Excluded from 6.5% Cap)
$101.00
6.0%
Miscellaneous (Excluded from 6.5% Cap)
Transportation
Association of Student Govt (ASG)
Total request
FY 2013-14 UNCW Mandatory Fees = 5.6% decrease
FY 14-15: $116 increase in Athletic fee
$67.40 decrease in debt fees
Net: $48.60 fee increase (2.1% increase)
63
Purpose:
Board of Governors provides guidance for increasing tuition / fees during summer-terms.
Timelines: Developed annually during fall - winter (September – November)
Guidance: UNC-GA – September
Budget Office – September
Due Dates: To UNC-GA (November)
Type Funding: Receipt-supported state funds
What’s Authorized in Request?
Both resident and nonresident tuition rates may remain at the same level as previous summer or may be
increased in a manner consistent with the increases approved for regular-term rates.
Non-resident rates may vary, on a per credit hour basis, relative to regular term rates, if it is demonstrated
that such rates are “market-driven.”
No restriction on fee increases.
64
Tuition:
Undergraduate Resident Tuition
Undergraduate Non-Resident Tuition
Graduate Resident Tuition
Graduate Non-Resident Tuition
MBA Program Resident Tuition
MBA Program Non-Resident Tuition
Mandatory Fees:
Health Services
Transportation
SGA
Recreation & Intramurals
Postal
Athletic Facilities
Student Union
Student Media
Cultural Events – Academic /Student Affairs
Debt
Current
Rate
Requested
Rate
Change
%
Increase
$120.49
$470.06
$138.06
$538.33
$149.54
$571.42
$135.00
$475.00
$155.00
$575.00
$167.89
$610.33
+$14.51
+$4.94
+$16.94
+$36.67
+$18.35
+$38.91
+12.04%
+1.05%
+12.27%
+6.81%
+12.27%
+6.81%
$5.50
$1.50
$0.50
$5.00
$0.75
$1.00
$6.00
$0.50
$1.50
$11.00
$5.50
$1.50
$0.50
$5.00
$0.75
$1.00
$6.00
$0.50
$1.00
$11.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
65
Purpose: Internal (to UNCW) process for allocation of funds, both permanent and one-time, for the upcoming fiscal year.
Permanent funds come from Enrollment Growth ………………………. FY 13-14 ($3.6M)
..……………………… FY 14-15 ($8.0M) - request
One-time funds come from ………………………………………………..FY 13-14
(1) lapsed benefits …………………………………….. $4.0M
(2) carry forward from previous year ………………… $1.7M
Reason why we developed “recurring use of 1-time”
(3) university-held funding …………………………….. $1.5M
(4) excess tuition revenue………………………….……$3.0M
Timelines:
Developed annually spring – summer (March – June)
Guidance:
Budget Office – March / April
Due Dates:
To Budget Office - May
Type Funding: State
What’s Authorized in Request?
Will vary depending on financial climate for that given year.
Starting point can vary depending on the fiscal year and the economic climate.
For divisions (Chancellor, Business Affairs, University Advancement) virtually the only process where you can receive additional
state funds.
66

Permanent funds (Enrollment Growth)
 Based on enrollment change

12-cell funding model determines requirements
 New faculty positions


FY 2007-08: 12.35 new positions ……………………………………727.65 faculty FTE

FY 2008-09: 12.20 new positions

FY 2009-10: 24.14 new positions (16.09 RTI / 8.05 DE)

FY 2010-11: 32.64 new positions (25.66 RTI / 6.98 DE)

FY 2011-12: 20.76 new positions (9.96 RTI / 10.80 DE)

FY 2012-13:

FY 2013-14: 19.31 new positions (6.80 RTI / 12.33 DE)

FY 2014-15: 42.71 new positions (16.23 RTI / 26.48 DE) ……...... 877.10 faculty FTE
2.21 new positions (4.829 RTI / -2.623 DE) ………. 819.46 faculty FTE
Cabinet decisions made throughout UBP will affect allocations
67
Regular Term Instruction
Change to SCH's
U/G
Masters
SCH per Instructional Position
Doctoral
U/G
Masters
Instructional Positions Required
Doctoral
U/G
Masters
Doctoral
Cat 1
(1,960)
(4)
0
708.64
169.52
115.56
-2.766
-0.024
0.000
Cat 2
1,793
(642)
(7)
535.74
303.93
110.16
3.347
-2.112
-0.064
Cat 3
3,608
(154)
84
406.24
186.23
109.86
8.881
-0.827
0.765
Cat 4
336
69
0
232.25
90.17
80.91
1.447
0.765
0.000
3,777
(731)
77
10.909
-2.198
0.701
Totals
Total SCH Change
3,123
9.957
Total Positions Required
Average Teaching Salary
$
Instructional Salary Amount
$ 782,919
Other Academic Costs (44.89%)
$ 351,452
Total Academic Requirements
$1,134,371
Library Rate
11.48%
$ 130,226
3 – ART, CHM,
ERS, BIO,
PHY, THR
$2,273,761
Gen Inst Spt
54.05%
$ 613,128
4 – EGN, NSG
$ (396,036)
Total Requirements
Calculation of Appropriation Request
78,630
Tuition
Total Revenue:
FTE
Rate
In-State U/G FTE's
-137
$
3,029
$ (414,973)
Out-State U/G FTE's
187
$
14,128
$2,641,936
Res per GS-116-143.6 U/G FTE's
-12
$
3,029
$ (36,348)
In-State Grad FTE's
-47
$
3,421
$ (160,787)
Out-State Grad FTE's
17
$
14,858
$ 243,933
8
Appropriation Request
Program Cat:
1 – ANT, CRJ,
ENG, MAT,
PLS, SOC,
SWK
2 – ACG, FIN,
MGT, MKT,
EDN
$1,877,725
68

General Statute authorizes Chancellor to “carry” 2.5% of
state appropriation into next year
 Carry forward becomes one time funds
 Governor can restrict carry forward
o FY 01-02, FY 02-03, FY 08-09, FY 09-10, FY 10-11, FY 11-12

Departments
 2.5% of account codes 915000 – 950000 permanent budget
 Initiative being discussed by senior officers to change university
policy – will increase amount departments can carry forward

Must request use of carry forward funds
 Gain approval from OSBM
69
Purpose: Internal (to UNCW) process for re-evaluating one-time state funding, based on excess tuition receipts and
additional lapsed benefits.
Timelines: Developed annually in winter (November – January)
Guidance: Budget Office - November
Due Dates: To Budget Office - December
Type Funding: State (one-time only)
What’s Authorized in Request?
Will vary based on financial climate of fiscal year, and availability of additional resources.
During the past several years, excess funds used to meet state-mandated reversions.
Starting point is often unfunded priorities (set by Vice Chancellors) from annual allocation process.
One-time requests only. No recurring commitments will be authorized.
70
BREAK
71
 What is a budget?
 What makes up the general funds budget?
 How are general funds structured?
 How are general funds budgets increased / decreased?
72

Management plan for meeting probable revenues
and expenses for a given period

Serves as a control mechanism to match
anticipated and actual revenue and expenditures

Mechanism to keep expenditures within the
budget established for the operation
73

Appropriation: An enactment by the General Assembly authorizing the
withdrawal of money from state treasury.

Certified Budget: The budget enacted by the General Assembly

Authorized Budget: The funds appropriated by the General Assembly
updated to reflect line-item reallocations allowed by the State Budget Act
and approved by Office of State Budget and Management (OSBM).

Carry-Forwards: Funds appropriated but unspent in the fiscal year of a
biennium which by authorized budget revision are brought forward for
expenditure in the second year of the biennium.

Reversions: Unspent appropriations returned to the General Fund at the
end of the fiscal year.
74
requirements (all expenditures)
must equal
revenues
(Tuition and State appropriations)
Note: departmental expenditure budgets = requirements
75
“University financial data, both budgetary and transactional, should utilize, as appropriate, purpose classifications and concurrently, as
appropriate, expenditure or revenue classifications.”
Authorized for General Funds
101 Instruction: This purpose includes all components of academic instruction offered on or off-campus for academic credit. Costs associated with
instruction include salary and benefit costs for academic department heads, departmental chairpersons, academic program directors, all budgeted regular
term teaching positions, and support personnel supervised and directed by persons filling those positions. Also, this purpose includes supportive services,
supplies, and equipment required by such positions.
102 Summer Term Instruction: This purpose includes all components of academic instruction offered by regular academic departments during
summer terms and sessions. Instructional courses may be offered either for credit or noncredit. It includes summer term administrators, all teaching
positions budgeted for summer term instruction, and all supportive personnel, services, and materials associated with and required by those positions.
110 Organized Research: This activity includes research efforts of a specified scope conducted for the primary purpose of achieving identified research
outcomes, whether commissioned and sponsored by external agencies or separately sponsored within the institution. It includes individual research, project
research, sponsored research, research institutes, and research centers.
151 Libraries: This purpose includes organizational divisions of The University and related personnel whose responsibilities include the acquisition,
collection, classification, cataloging, display, circulation, distribution, maintenance, and restoration of printed, published, recorded, duplicated, discovered,
created, and collected materials, objects, and resources.
152 General Academic Support: This purpose includes non-library academic support services of the institution which provide direct assistance to and
are an integral part of one or more of the three primary activities (i.e., instruction, organized research, and public service), including their constituent
purposes.
76
170 Institutional Support: This activity includes functions and services, which provide continuous general operational support to the
institution. It includes all central, executive-level management of and long-range planning for the entire institution, all areas of executive
direction and senior executive officers, fiscal operations (e.g., accounting, contracts and grants, payroll, trusts, systems and procedures,
disbursements, cash management, cashiers, budget preparation and administration, investments, etc.
180 Physical Plant Operations: This activity includes functions and services of the institution which operate, repair, and maintain
physical facilities and grounds, provide utility and environmental services and their accompanying administrative and support components.
230 Student Financial Aid: This activity includes funds available for distribution as scholarships, fellowships, traineeships, trainee stipends,
grants, grants-in-aid, prizes, and awards to students enrolled in degree or certificate programs at the institution.
Not Authorized for General Funds
200 Student Auxiliaries: This activity includes management, operations, and maintenance of auxiliary enterprises designed to primarily
serve students of the institution. Fees are charged to students for available services and for services utilized, and each constituent purpose
is operated as a self-supporting entity.

201 Auxiliary Administration

202 Campus Center

203 Food Services

204 Health Services

205 Housing Services

206 Laundry Services

207 Recreational Services – includes intercollegiate athletics

208 Student Stores

77
By Program Codes
Banner Fund
101
Regular Term Instruction
12xxxx – 137xxx
141xxx (DE)
102
Summer Term Instruction
138xxx
103
Non-Credit/Off-Formula Instruction
139xxx & 144xxx
110
Organized Research
148xxx
142
Community Service
142xxx
151
Libraries
151xxx
152
General Academic Support
152xxx
160
Student Services
16xxxx
170
Institutional Support
17xxxx
180
Physical Plant Operations
18xxxx
230
Student Financial Aid
167010
252
Other Reserves
109993
http://www.northcarolina.edu/finance/chart_accounts/COA.pdf
78

Biennial budget (appropriation)
 Continuation, Expansion, Capital, Supplemental

Annual allocation process (appropriation + tuition)
 Enrollment growth

SRCI carry forward from prior year (appropriation)

Tuition receipts
 Campus-initiated tuition increases (CITI)
 Summer School
79

Permanently (Legislative Reductions)
 Requirements

Appropriations
One-Time (Reversions)
 Requirements – No change (but moved to “reserve” line)
 Appropriations – No change
 How we handled FY 10-11 $3.5M reversion?
o Lapsed benefits
o University-held funds “returned” from Annual Allocation process
o No direct affect on departments
80

Each year begins with the same permanent general funds budget
unless it is changed by:
 Adding 2.5% carry forward (1-Time)
 Permanent SRCI flex (Permanent)
 New funding from any of the various budget process (Perm or 1-Time)
 Budget reduction (Permanent)
 Reversion (1-time)
81
?
82