Budget Hearings

Fiscal Year 2013 – 2014

Midwestern State University

March 21 – 22, 2013

Welcome!!

Introduction to Budget Hearings• Why MSU is holding budget hearings

– Greater understanding– Transparency– Link to MSU strategic goals

• Attendance is optional• Materials are posted on the Budget Office website

(www.mwsu.edu/adminfinance/budget/index.asp)• Information will be used to help with FY14 budget

decisions

Thursday Schedule

Presenting this morning, March 21, 2013 Business Affairs and Finance

Selected Business Affairs and Finance areasFacility ServicesPurchasing and Paperless Initiative

Enrollment Management and Student AffairsStudent Service Fee and Other Revenue AreasAuxiliariesEnrollment Management and Student Affairs AdministrationEnrollment Management

Thursday Schedule

Presenting this afternoon, March 21, 2013University Advancement

Alumni, Development, Marketing and Public Information, Scholarships, MSU Charitable Trust and Foundation, MSU Endowments

Administration and Institutional EffectivenessInstitutional Research and PlanningInformation TechnologyDistance Education, IELI and Continuing EducationCycling Team Administration and Institutional Effectiveness

Thursday Schedule

Presenting this afternoon, March 21, 2013President’s Office

President’s Office, Audit, General Counsel, Legislative Affairs, Board of Regents, Sikes House, South Campus Operations

Human ResourcesAthleticsWichita Falls Museum and Art Center

Very full agenda. Please keep within your scheduled time. We will assist by giving a 5 minute wrap-up warning. You will be asked to stop at the appropriate time.

Strategic Goals

Six strategic goals approved by the Midwestern State University Board of Regents:

Strengthen the extent to which MSU’s mission and vision are effectively conveyed both within and outside of the organization, and serve as the basis for decisions.

Establish and implement processes for effective faculty recruitment and retention to ensure the highest quality faculty.

Increase the quality of education provided to students to ensure they have essential competencies to contribute to society, embark on or advance in chosen careers, and engage in lifelong learning.

Strategic Goals, continued

Six strategic goals approved by the Midwestern State University Board of Regents:

Acquire and incorporate technology (equipment, software, process, etc.) that enhances educational quality and operational effectiveness.

Increase the number and quality of students admitted to and retained in graduate and undergraduate programs.

Expand and diversity university resources.

Budget Calendar

April 1, 2013 Voluntary separation paperwork due.

Mid April 2013 Discussion on enrollment and any possible fee increase.

April – May 2013 Work with departments on budget submissions.

May 2013 State appropriation finalized.

May 10, 2013 Board of Regents approves tuition and fees for FY 2014.

May 28, 2013 All changes due to Budget Office for first draft.

Early June – Mid July 2013 Budget workshops with the Budget Oversight Committee.

June 27, 2013 2014 draft presented to Budget Oversight Committee.July 17, 2013 Final budget changes due in the Budget Office.

July 25, 2013 Budget is mailed to Board of Regents.

August 9, 2013 Board of Regents takes action on the proposed budget.

Dates for Fiscal Year 2014 Budget Preparation

Business Affairs and Finance

Budget Hearings

Business Affairs and Finance

By Valarie Maxwell

March 21, 2013

MSU Overview

▪ FY 2013 Operating Budget ~ $95.7 Million

Major components:

▪ 655 current benefit eligible positions, full-time equivalent faculty and staff

▪ Our payroll is over $37 Million

▪ Fringe benefits over $11.38 Million

▪ Maintenance /operation budgets are $9.9 Million

▪ Scholarships over $20 Million

▪ Annual debt service is $9.8 Million

▪ Operating budget is fall semester enrollment driven

Business Affairs and Finance

Payroll

Controller/Business Office

Business Affairs and Finance

Budget Office

Facility Services and Purchasing Office

~ Presentations to follow

Mission

The mission of the Business Affairs and Finance division is to complement Midwestern State University’s mission as

the Liberal Arts University of the State by providing exemplary support services for instructional, research,

and public service to the entire campus community while maintaining a safe, secure and pleasant environment for students, faculty, staff and visitors. We are committed to innovation, change, and continuous self-evaluation, with a commitment to provide high quality customer service

to internal and external constituents in day-to-day financial and business operations.

Division Emphasis

• Customer Service Excellence– High Quality– Efficient– Best Practices

• Superb Financial Stewardship– Transparent– Accurate– Timely

• Effective Facilities Management– Functional– Safe– Attractive

Payroll Office

▪ Three staff

▪ Payroll disburses over $37,000,000 in salaries

and wages

▪ Payroll Paperwork

▪ Process over 1,800 PTF’s

▪ 686 Staff Notice of Employments

▪ 803 Faculty contracts (includes adjunct, GTA, and summer school)

▪ 1,889 W-2’s for 2012 ~ only 300 employees have chosen electronic format

Payroll Office, continued

▪ Responsible for:

▪ Federal and state reporting

▪ Tax deposits

▪ International employee paperwork

▪ Efficiencies:

▪ Web time entry for hourly payroll ~ March 2010

▪ Electronic payments ~ December 2010

▪ Almost 19,000 direct deposits generated in 2012

▪ Only 92 actual paper checks cut in 2012

▪ All payroll vendors (child support, ORP, student loans, bankruptcies, etc.) totally electronic except for 5 vendors

Payroll Office, continued

▪ Currently the operational budget is combined with the Business Office budget and we are hoping to change that next year.

▪ Certified Payroll Professional training is requested which is done through the American Payroll Association. Conference geared specifically for higher education.

▪ 2012 state audit found no errors during a major payroll sample test.

Controller/Business Office

▪ Staff of 12 FTE

▪ Controller, Assistant Controller, University Cashier

▪ 3 each: Accountants, Accounting Assistants and Tellers

▪ Front line for student billings/receivables and all campus deposits

▪ Accounts payable, travel, university investments

and all financial reporting

▪ Operations and travel budget reduced over 14% since 2010

Controller/Business Office, continued

▪ 2012 compared to 2008, reduced postage 73%, over $17,000

▪ Student refund shift to direct deposit

▪ Student e-bills instead of paper bills

Year Checks Direct Deposits

2011 58.40% 41.60%

2012 41.03% 58.97%

2013 (2 terms) 39.99% 60.01%

Business Affairs and FinanceBudget Office

▪ Staff of 3 FTE

▪ Every PTF needs budget approval, signature and processing, over 1,800

▪ Every Personnel Requisition Form needs approval and signature

▪ Oversight on centralized budgets

Group health insurance accounts TRS surcharge

Unemployment/workman’s compensation Building insurance

Tuition rebates Debt service

FTE proportionality within state limits Fringe expense calculations

State appropriation spending Credit card costs

Business Affairs and FinanceBudget Office, continued

▪ Calculate and/or review all revenue calculations

Resident and non-resident tuition Three-peat income

Interest income from various sources Indirect cost

All student paid mandatory fees Facility rentals

Auxiliaries like housing and meal plan revenues Library fines

Vending and bookstore commissions Returned check charges

Installment and loan origination fees Administrative overhead

Scholarship pass-through like Pell, SEOG Camp incomes

Late registration and application fees Gate receipts and ticket sales

Various sources of sales and services sold Parking fines and decal sales

Interdepartmental transfers Grant income

Business Affairs and FinanceBudget Office, continued

▪ Working with departments on budget issues

▪ 2013 ~ rebuilding and balancing of the current year

▪ 2013 is a legislative year

▪ Analysis of proposed bill patterns

▪ New bill drafted to improve investment efficiencies

Business Affairs and FinanceBudget Office, continued

▪ Efficiencies achieved and proposed

▪ Less printing of hard copy budgets and Legislative Appropriations Requests ~ done

in CD format

▪ On-line budget transfers coming

▪ Decentralizing part of budget development process

▪ Advocates for electronic PTFs, contracts, PRFs, and staff notices of employment

Business Affairs and FinanceBudget Office, continued

▪ Looking forward as we prepare 2014 budget

▪ Faculty merit pool implemented through salaries

▪ Group health insurance rate increases

▪ Instructional Enhancement Fee restructured

▪ Restructuring of mandatory student fees

▪ Possible classified pay plan base increase ~

base pay not increased since 2007

We do ask for your assistance as we prepare 2014 by being attentive to timelines and requests for information. We are here to help in any way needed.