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Budget, Balance, & the Ripple Effects of Executive Decisions Presented to Rhode Island Women in Higher Education Fifth Annual Conference April 20, 2007 Presented By Ivy Locke Vice President for Administration and Finance Rhode Island College Slide 2 Budget, Balance, & the Ripple Effects of Executive Decisions What is a Budget? Global Budgetary Impact Institutional Budget Practices Budget Software (Integrated Databases) Budget Phobias Budget Basics (THE LEVERS) Budget, Budget Who Responsible for the Budget? AGENDA FOR RIWHE TABLE TOP DISCUSSION Page 2 Slide 3 Budget, Balance, & the Ripple Effects of Executive Decisions What is a Budget? A financial guide or plan Funding to achieve an approved strategy A reasonable forecast Feedback: A map of your progress A communication tool to monitor adherence to policies and procedures Your best friend Other Page 3 Slide 4 Budget, Balance, & the Ripple Effects of Executive Decisions Global Budgetary Impact (Who Cares?) Budgeting by Unit Budgeting by Department Budgeting by Division Budgeting by Institution Budgeting Reports for Management Budgeting Reviews by Auditors Budgeting Reviews by Outsiders (Banks, etc.) Page 4 Slide 5 Budget, Balance, & the Ripple Effects of Executive Decisions Institutional Budget Practices State Versus Private Centralized Versus Decentralized Operating (Current Budget) Funding for Personnel Funding for Operations Funding for Equipment Capital (Long Term) Buildings and Land Acquisitions Other Page 5 Slide 6 Budget, Balance, & the Ripple Effects of Executive Decisions Budget Software (Integrated Databases) Integrated Databases Shadow databases Implementation Phases Testing Documentation Training Production Page 6 Slide 7 Budget, Balance, & the Ripple Effects of Executive Decisions Budget Phobias Math Expertise Computer Expertise Accounting Expertise Budgeting Expertise Relevance (distraction from core duties) Failure (fear of stupid mistakes) If you fail to budget, you budget to fail. Page 7 Slide 8 Budget, Balance, & the Ripple Effects of Executive Decisions Budget Basics (THE LEVERS) Base versus One time (DIFFERENT POTS OF MONEY) Base funding recurs for ongoing expenses Appropriations, Tuition One-time funding may not recur Grants, Fundraising, Donations A word about Endowment Page 8 Slide 9 Budget, Balance, & the Ripple Effects of Executive Decisions Budget Basics (THE LEVERS) Revenue Appropriations Tuition (Fees & Enrollment Management) Other Page 9 Slide 10 Budget, Balance, & the Ripple Effects of Executive Decisions Budget Basics (THE LEVERS) Expenses Personnel (Salaries, Raises, Benefits, Co-Pays, Furloughs, Layoffs, Salary Cuts) Operations (Supplies, Equipment, Utilities) Program Reviews (Academic and Administrative) Budget Reallocations and Transfers Other Page 10 Slide 11 Budget, Balance, & the Ripple Effects of Executive Decisions Budget, Budget Who Responsible for the Budget? You are or you want to be. Thats why you are here. Right? Reinforce a culture of accountability ~Tufts Sample Worksheet from Tufts Questions Page 11 Slide 12 Page 12 Slide 13 Page 13