New Department Chair OrientationAugust 15, 2014

Diane S. Stephens, Associate Vice PresidentDepartment of Academic Resources and Planning

California State University, Northridge

BUDGET101

Today’s Agenda• 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/academic-resources-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

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The CSU/California Budget Process

State and CSU

http://www.calstate.edu/budget/fybudget/2013-2014/documentation/budget-cycle-chart.shtml

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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)

The CSU/California Budget Process

CSUN Budget

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CSUN appropriation and tuition trends (in millions)

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 $-

$50

$100

$150

$200

$250

$300

$350

$195 $194

$149 $167

$131 $107

$142

$91 $103 $128

$140 $179 $175

$177

Tuition Fee Revenue

General Fund Appropriation

millions

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CSUN Tuition Fee Revenue and Support Appropriation Shift

General Fund Support

65%

Total Fee Revenues

35%

2007-08

General

Fund Sup-port40%

Total Fee Rev-

enues60%

2013-14

Total Campus Operating Revenue - $500 Million

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%

Extended Learning $35,987,539 7%

Housing Operations $21,118,504 4%

Parking$9,287,261

2%

Health Facilities Fee $236,343

The University Corp $16,951,977 3.4%

Grant & Contracts $28,500,000 5.7%

Foundation $7,800,000

1.6%

University Student Union $12,638,788

2.5%

Assoc Students $7,638,500

1.5%

North Campus $532,500

.1%Lottery

$2,209,000.4%

IRA $1,967,700

.4%

VPAC $2,260,563

.5%

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Our Campus PartnersSelf-supporting Enterprise entities include:– Tseng College of Extended Learning ($36M revenue)– Housing ($21M)– Parking ($9M)– Health Facilities ($200K)

Incorporated Auxiliary entities—501(c)(3) include:– The University Corporation ($35M)– University Student Union ($10M)– Associated Students, Inc ($7.6M)– North Campus ($.5M) & Foundation ($8M)

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

State Appropriation$141,659,296

40%

Tuition Fee Revenue$195,994,412

56%

Other Student Fees$15,342,850

4%

*65% in 2007-08

CSUN Student Fees

State Appro-priation

$141,659,29640%

Tuition Fee Revenue

$195,994,41256%

Other Student Fees$15,342,850

4%

State Appropriation $ 141,659,296 40%

Tuition Fee $ 174,396,000 Non-Resident Fees $ 18,900,000 Doctoral and Business Grad Fees $ 2,698,412

Tuition Fee Revenue $ 195,994,412 56%

Other Student Fees

Application Fee $ 1,500,000 Campus Quality Fee $ 7,829,300 Health Services Fee $ 4,250,550 Augmented Health Fees $ 1,193,000 Misc Student Fees $ 570,000

Total Other Student Fees $ 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 growthFaculty positionsStaff supportOperating expenses and equipment

• 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?

http://www.csun.edu/campusbudgetnews University Budget News Website:

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 policieshttp://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

– Supplies and services– Equipment– Travel/professional development– Contingency

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BEST PRACTICES

Generating and Using the Right Information

Best Practices

• 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

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FacProg Code

ART 100 10180 1 4 AC210 MW 800 825 29 Wright, Frank Lloyd 4,706$ P 1.9 1.0 0.07 1,882$ 6 35

ART 100 10181 1 4 AC210 MW 1100 1125 40 Olmsted, Frederick 5,188$ P 2.7 1.0 0.07 2,075$ 6 40

ART 100L 10186 2 7 AC210 TR 825 1005 29 Wright, Frank Lloyd 4,706$ P 3.9 2.6 0.17 4,894$ 6 35

ART 100L 10187 2 7 AC210 F 900 1220 32 Wright, Frank Lloyd 4,706$ P 4.3 2.6 0.17 4,894$ 6 35

ART 243 18097 3 7 AC407 TR 1400 1645 28 Hoban, James 3,458$ F 5.6 3.9 0.33 -$ 2 30

ART 244 18098 3 7 AC407 MW 800 1045 25 Hunt, Richard M. 2,757$ F 5.0 3.9 0.33 -$ 2 20

ART 244 18099 3 7 AC407 TR 1100 1345 26 Sullivan, Louis 3,550$ P 5.2 3.9 0.26 5,538$ 2 20

ART 245 18100 3 13 AC407 TR 800 1045 27 Lamb, William 3,822$ P 5.4 3.9 0.26 5,962$ 3 35

ART 250 18148 3 36 AC334 MW 1100 1345 5 Van Alen, William 7,451$ F 1.0 1.7 0.14 -$ 4 15

ART 250 18149 3 36 AC334 MW 1400 1645 10 Lamb, William 3,822$ P 2.0 3.3 0.22 5,096$ 4 25

ART 484 11304 1 36 AC211 W 1600 1650 7 Gilbert, Cass 4,000$ P 0.5 2.3 0.16 3,733$ 1 15

ART 484 11305 1 36 AC211 M 1600 1650 8 Van Alen, William 5,285$ F 0.5 2.7 0.22 -$ 1 5

TOTALS: 266 37.9 33 2.39 34,076$ 310

Subject Catalog

Class Nbr CCU C/S # Room Instructor Base Salary Curr.

Enroll.Proj EnrollDays

Start Time

End TimeFTES

CurrentWTU

CurrentFTEF

Current PTF Expenses

Current

ART 100 10180 1 4 AC210 MW 800 825 29 Wright, Frank LloydART 100 10181 1 4 AC210 MW 1100 1125 40 Olmsted, FrederickART 100L 10186 2 7 AC210 TR 825 1005 29 Wright, Frank LloydART 100L 10187 2 7 AC210 F 900 1220 32 Wright, Frank LloydART 243 18097 3 7 AC407 TR 1400 1645 28 Hoban, James

Subject Catalog

Class Nbr CCU C/S # Room InstructorCurr.

Enroll.Days

Start Time

End Time

Fac

Wright, Frank Lloyd 4,706$ P 1.9 1.0 0.07 1,882$

Olmsted, Frederick 5,188$ P 2.7 1.0 0.07 2,075$

Wright, Frank Lloyd 4,706$ P 3.9 2.6 0.17 4,894$

Wright, Frank Lloyd 4,706$ P 4.3 2.6 0.17 4,894$

Hoban, James 3,458$ F 5.6 3.9 0.33 -$

Instructor Base Salary FTES

CurrentWTU

CurrentFTEF

Current PTF Expenses

Current

SOC Worksheet = Planning + Priorities

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Prog Code Program Priorities / Categories FTES % Dept. WTU % Dept. FTEF % Dept. PTF Exp % Dept.1 Required Grad. & U.D. Majors Courses 1 3.0% 7 15.2% 0.47 15.8% 8,000$ 17.4%2 Required L.D. Majors Courses 14 31.3% 12 35.7% 0.91 38.1% 5,538$ 12.0%3 Required Service Courses 7 15.7% 4 11.9% 0.26 10.9% 5,962$ 13.0%4 High Priority Elective Courses - Majors 8 17.9% 13 15.2% 0.97 15.1% 12,740$ 27.7%5 Lower Priority Elective Courses - Majors 0 0.0% 0 0.0% 0.00 0.0% -$ 0.0%6 G.E. Courses 14 32.1% 7 22.0% 0.48 20.1% 13,746$ 29.9%7 Other . . . 0 0.0% 0 0.0% 0.00 0.0% -$ 0.0%

TOTALS 45 43 3.09 45,986$

PROJECTED

Prog Code Program Priorities / Categories1 Required Grad. & U.D. Majors Courses2 Required L.D. Majors Courses3 Required Service Courses4 High Priority Elective Courses - Majors5 Lower Priority Elective Courses - Majors6 G.E. Courses7 Other . . .

TOTALS

Prog Code

ART 100 INTRO ART PROCESS 10180 6 35

ART 100 INTRO ART PROCESS 10181 6 40

ART 100L ART PROCESS LAB 10186 6 35

ART 100L ART PROCESS LAB 10187 6 35

ART 243 INTRO TO TYPE 18097 2 30

ART 244 GRAPHIC DESIGN I 18098 2 20

ART 244 GRAPHIC DESIGN I 18099 2 20

ART 245 GRAPHIC DESIGN I 18100 3 35

ART 250 PHOTOGRAPHY I 18148 4 15

ART 250 PHOTOGRAPHY I 18149 4 25

ART 484 ART ED PORTFOLIO 11304 1 15

ART 484 ART ED PORTFOLIO 11305 1 5

Proj EnrollSubject Catalog

Title Class Nbr

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 year-end

• Resources: – http://www.csun.edu/sites/default/files/sf-coa-

guide.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-resources-planning/budget-presentations

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