general budget orientation and discussion mr. gavin leach, vice president for finance and...

General Budget Orientationand Discussion

General Budget Orientationand Discussion

Mr. Gavin Leach, Vice President for Finance and AdministrationMr. Gavin Leach, Vice President for Finance and Administration

Current funds (Operating)● General fund● Designated fund● Auxiliary fund● Expendable restricted fund

Non-current funds (Non-operating)● Student loan fund● Endowment fund● Plant fund● Insurance fund● Agency fund

Fund TypesFund Types

Current Fund (Operating) ActivitiesCurrent Fund (Operating) Activities General Fund

● Academic and instructional programs and their administration – programs primarily supported by appropriation, tuition and fees, indirect cost recoveries, investment income, and incidental revenues of departments

● Base budget Recurring budget line items such as personnel, supplies, equipment, utilities, debt

service, and other related expenditures● Designated and carryover budget

University funds remaining from the prior fiscal year. These funds include amounts contractually committed (i.e., purchase orders issued, unspent faculty contractual travel funds), general operating reserves, and departmental operating carry-over balances.

Designated Fund● Operations that generate revenues for specific purposes that are not restricted

by donors, supporting agencies, or patrons – generate revenue to support their ongoing operations but may receive some general fund support and also include departmental equipment reserves

● Major operations include: intercollegiate athletics, Superior Dome operations, Berry Events Center, recreational services, telephone systems, NMU Foundation support, printing services, etc.

Current Fund (Operating) Activities Current Fund (Operating) Activities (continued)(continued)

Auxiliary Activities Fund● Activities of revenue-producing, self-supporting activities that perform a

service for, but are not themselves educational and general activities, and do not receive state support

● Major operations include: Residence Life, Dining Services, Bookstore, University Center operations, and the Health Center

● Recurring budget line items such as personnel, supplies, equipment, utilities, debt service, and other related expenditures

Expendable Restricted Fund● Funds that are restricted for specific purposes stated by the supporting

agencies or donors● Primary funding sources include federal financial aid, private scholarships, and

federal, state, and local grants

Non-current Fund ActivitiesNon-current Fund Activities

Student Loan Fund● Maintained to account for loans to students of the institution

Endowment Fund● Maintained to account for money or investments received for endowments where donor

has specified that the principal may not be expended, term endowments (donor specified period to hold principal), and funds functioning as endowment (donor did not require funds be held in perpetuity, but governing board has decided to treat as endowment)

Plant Fund● Funds held to account for: the acquisition of physical properties to be used for

institutional purposes, renewal and replacement of institutional properties, retirement of indebtedness of institutional properties, and funds expended and invested in institutional plant properties

Insurance Fund● Funds held to account for institution’s employee insurance and institutional physical

plant and liability insurance programs Agency Fund

● Funds received by the institution to be held or disbursed only on the instruction or behalf of the person or organization from whom they are received – custodial funds (i.e., amounts withheld for taxes, social security, insurance, etc.)

NMU Total Resources Operating BudgetNMU Total Resources Operating Budget

Total = $165.9 million

Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and Fees, Dining Revenues, and Residence Life Revenues the Total Resources Operating Budget would be $192.3 million.

General Fund Budget

General Fund Budget Process TimelineGeneral Fund Budget Process TimelineFiscal Year 2009-10Fiscal Year 2009-10

February: Governor State of the State February: Governor Executive Budget to the

legislature March/April: House Budget Subcommittee Hearing April 30/May 1: Board of Trustees Meeting May/June: Senate Budget Subcommittee May/June??: House and Senate floor votes June ??: House/Senate Conference Committee July 16/17: Board of Trustees Meeting

(may need special board meeting to set tuition and fees)

General Fund Resources

NMU Total Resources General Fund BudgetNMU Total Resources General Fund Budget

Total = $102.4 million

Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and Fees the Total Resources General Fund Budget would be $112.9 million.

Total General Fund Resources HistoryTotal General Fund Resources History

To maintain financial reporting consistency with fiscal years ’81, ’91, and ’01 data, financial aid was not deducted from ’08 tuition and fee revenue.

(Source: Actual General Fund Revenues State of Michigan HEIDI Database)

1981 1991

2001 2008

AppropriationAppropriationAppropriation History

(shown in 000,000s)

Fiscal Year Equated Student (FYES)Fiscal Year Equated Student (FYES)

Calculation:● Total undergraduate credit hours divided by 30 equals 1

FYES● Total graduate credit hours divided by 24 equals 1 FYES● NMU Total FYES for FY2008 = 8,428

Fall 2007 Headcount (FY2008) = 9,358 Fall 2008 Headcount (FY2009) = 9,347

NMU Appropriation per FYESNMU Appropriation per FYES

Appropriations per FYESAppropriations per FYESFiscal Year 2008-2009Fiscal Year 2008-2009

Source: Presidents Council, State Universities of Michigan

FY 2009 Appropriation divided by FY2008 FYES

Tuition and Fee RatesTuition and Fee RatesFiscal Year 2008-2009Fiscal Year 2008-2009

Source: Presidents Council, State Universities of Michigan

Annual resident undergraduate tuition and fee rates

Non-resident Tuition and Fee Rate ComparisonNon-resident Tuition and Fee Rate Comparison

FY2008-2009 Annual nonresident undergraduate tuition and fee rates

Source: Michigan President’s Council Report on Tuition and Fees for FY2008-09

General Fund Expenditures

Total Costs per FYES: NMU vs. Michigan 12Total Costs per FYES: NMU vs. Michigan 12Fiscal Year 2007-2008Fiscal Year 2007-2008

Michigan 12 (M12): excludes Michigan State University, University of Michigan Ann Arbor, and Wayne State University)

State Comparison of NMU vs. M11 UniversitiesState Comparison of NMU vs. M11 UniversitiesRevenues and Expenditures per FYES Fiscal Year 2007-2008Revenues and Expenditures per FYES Fiscal Year 2007-2008

Resources Rank NMU M11 Avg* DifferenceState Appropriation for State FY 3 $5,478 $4,204 $1,274General Fund Tuition and Fees 11 $7,388 $8,695 ($1,307)Less: Financial Aid 4 ($1,296) ($1,095) ($201) Subtotal-Net Tuition and Fees 12 $6,092 $9,790 ($3,698)Investment Income 3 $110 $91 $19Indirect Cost Recovery 6 $41 $127 ($86)Federal Funds 5 $0 $3 ($3)Other General Fund Revenue 8 $124 $256 ($132) Total Resources 9 $11,845 $14,470 ($2,625)

ExpendituresInstruction 10 $4,720 $5,553 ($833)Research 8 $48 $167 ($119)Academic Support 1 $1,827 $1,497 $330 Subtotal-Academic Programs 9 $6,595 $7,217 ($622)Public Service 6 $69 $122 ($53)Student Service 4 $883 $717 $166Institutional Support 9 $1,297 $1,562 ($265)Plant Operations 5 $1,536 $1,349 $187Auxiliary Enterprises 4 $250 $220 $30Transfers 5 $1,338 $1,036 $302 Total Expenditures 7 $11,969 $12,223 -$254

NMU Total Cost per FYES HistoryNMU Total Cost per FYES History

FY 1998: $ 9,643 (10 years) FY 2002*: $10,343 (5 years) FY 2008*: $11,969

● Total costs per student (FYES) increased a total 24.1% over the past 10 years (approximate average increase of 2.4% per year since 1998)

* Includes costs for implementation of TLC (NMU’s notebook computer program – providing all full-time students with notebook computer on two-year replacement cycle)

History – Total Revenues per FYESHistory – Total Revenues per FYES

Source: State of Michigan HEIDI DatabaseSource: State of Michigan HEIDI Database

History – Appropriations per FYESHistory – Appropriations per FYES


History – Tuition Revenue per FYESHistory – Tuition Revenue per FYES


History – Financial Aid per FYESHistory – Financial Aid per FYES


History – Investment Income per FYESHistory – Investment Income per FYES


History – Total Expenditures per FYESHistory – Total Expenditures per FYES

Source: State of Michigan HEIDI DatabaseSource: State of Michigan HEIDI DatabaseNote: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.

History – Instruction per FYESHistory – Instruction per FYES


History – Research per FYESHistory – Research per FYES


History – Academic Support per FYESHistory – Academic Support per FYES


History – Total Academic Programs per FYES History – Total Academic Programs per FYES (Instruction, Research, and Academic Support)(Instruction, Research, and Academic Support)


History – Public Services per FYESHistory – Public Services per FYES


History – Student Services per FYESHistory – Student Services per FYES


History – Institutional Support per FYESHistory – Institutional Support per FYES


History – Plant Operations per FYESHistory – Plant Operations per FYES

Source: State of Michigan HEIDI DatabaseSource: State of Michigan HEIDI DatabaseNote: Includes heating plant / utilitiesNote: Includes heating plant / utilities

History – Plant OperationsHistory – Plant Operations (excluding utilities)(excluding utilities) per FYESper FYES

Source: State of Michigan HEIDI DatabaseSource: State of Michigan HEIDI DatabaseNote: Includes heating plant / utilitiesNote: Includes heating plant / utilities

History – Utilities per FYESHistory – Utilities per FYES

Source: State of Michigan HEIDI DatabaseSource: State of Michigan HEIDI DatabaseNote: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.Note: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.

History – Plant Operations History – Plant Operations (excluding utilities)(excluding utilities)per Square Footper Square Foot


History – Auxiliary Activities per FYESHistory – Auxiliary Activities per FYES(Primarily Intercollegiate Athletics)(Primarily Intercollegiate Athletics)


Auxiliary Activities Total ExpendituresAuxiliary Activities Total Expenditures(Intercollegiate Athletics)(Intercollegiate Athletics)


Expenditure 1998 2003 2008

CMU $0 $0 $0

EMU $4,582,379 $4,609,233 $8,883,914

GVSU $1,814,411 $3,445,430 $4,932,951

FSU $1,778,603 $2,089,400 $2,637,774

LSSU $650,000 $0 $0

MTU $0 $0 $0

NMU $1,879,999 $2,042,613 $2,107,503

OU $1,029,639 $1,916,215 $2,228,667

SVSU $1,058,838 $1,476,481 $2,190,830

UM-D $550,582 $62,163 $480,322

UM-F $0 $0 $0

WMU $9,985,247 $8,112,358 $7,156,763

History – Transfers per FYESHistory – Transfers per FYES


Budget Reduction HistoryBudget Reduction History

General Fund budget cuts/operational savings/ reallocations● FY2003-04: $6.5 million● FY2004-05: $2.8 million● FY2005-06: $1.5 million● FY2006-07: $3.0 million● FY2007-08: $1.3 million● FY2008-09: $1.8 million

Organizational efficiency – consolidation of organization structure and increased productivity = lower cost● 5 vice presidents to 2● 5 academic colleges to 3

NMU faculty and staff are the most productive among the 15 public universities (student-to-staff ratio)

Productivity: Student-to-Staff RatiosProductivity: Student-to-Staff Ratios

NMU has the best overall staffing efficiency ratios of the Michigan public universities● Productivity (student-to-staff ratio) 27.9% greater than state

average (M11 universities)

● Productivity increase of 6.2% over past 5 years (approximate average increase of 1.2% per year)

Productivity*Staffing Type RankAdministrative #1

Faculty #1 Service #5 Total #1

* Based on number of students divided by the number of staff.

general budget orientation and discussion mr. gavin leach, vice president for finance and...

Documents

institutional purposes

general activities

general fund support

institutional physical

ongoing operations

general operating reserves

university center operations

state supportmajor operations