FY2012-13 Budget Overview

October 2011

Agenda

• Financial Context for FY2013 Budget– FY2011 Year End Review– FY2012 and beyond

• Preparing the FY2013 Budget– Timeline and Key Dates– Budget Guidelines– Using Prior Data as a Guide– Key Items– Overview of Basic Forms

• Questions

FY2011 Year End Review

• FY2011 – yet another successful year– Success due to entire Colby campus realizing the challenges ahead

(in $000s)

Total Revenues $136,030

Total Expenses/Deductions $135,763

Net $ 267

• The endowment grew $109 million due to return on investment and gifts.

FY2011 Year End Review

2007 2008 2009 2010 2011$0

$100

$200

$300

$400

$500

$600

$700 21.9%

0.6% (21.8%)

13.5%24.0%

Endowment Return

Mar

ket V

alue

in $

Mill

ions

FY2011 Year End Review

• Cash flows increased due to the Reaching the World Campaign

2006-07 2007-08 2008-09 2009-10 2010-11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000 $25,580

$23,149 $20,053 $20,663

$28,882

FY2011 Year End Review

• Debt remains very low - financial flexibility retained

2007 2008 2009 2010 2011$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

10.9%

13.3%

17.2%15.1%

12.0%

Debt Debt-to-endowment

Out

stan

ding

Deb

t ($0

00s)

Outlook FY2013

• FY2012 – so far, so good• Multi-year budgets are largely balanced

BUT…..• The economy remains weak• The stock market is nervous

Dow – Decline since July

Dow Jones Industrial Average – One Year Index Values

But no FY2008 repeat

• Endowment better positioned• Working capital position strengthened• Increased funding liquidity• Financial analyses include a “disaster”

scenario• Biomass facility expected on line soon

Outlook FY2013

• All eyes on:– Endowment return– Cash flows from gifts– Economic indicators, especially inflation

Strategic Initiatives

• Academic Initiatives– Science building– New faculty and support positions

• Museum• Financial Aid / Diversity• Green Colby• Other staffing• Fundraising

• 0% non-compensation increase– Requests for deviations must be justified in writing

• Student worker expense (5211, 5212)– Actual expenses were 23% under budget campus-wide

in FY11, continuing a multi-year trend• This is NOT where we want to balance the budget.• If you have it, use it. If you haven’t used it, but will, keep it.

• Cell phones (maybe in both 5220 & 6112)– For now, budget like last year, but federal law has

changed. Separate instructions may be forthcoming.

Budget FY2013

• Departmental FY2012-13 Budgets– Review budget-to-actual spending patterns and

strategic priorities for your area– Not all items need to be kept at the same level– Consult with your vice president or dean as appropriate

during the preparation process– Budget request sent to PRIMARY Budget supervisor

only; re-assignment to two additional supervisors possible

FY2012-13 Budget

• Timeline– September 30, 2011 – “Budget Call” notice sent– October 21, 2011 – Budgets due from areas– November 18, 2011 – Office of Financial Planning completes first

draft of Preliminary Budget– December, 2011 – Conference call with Budget and Finance and

Compensation Committees– January, 2012 – Budget and Finance Committee approves the

Preliminary Budget– March, 2012 – Office of Financial Planning updates key

assumptions and prepares final Proposed Budget– April, 2012 – Board approves Proposed Budget

FY2012-13 Budget

FY2012-13 Budget

Effect of 0% IncreaseTotal BUD 2011 $100,000

Total ACT 2011 $ 75,000

Total BUD 2012 $100,000

Total BUD 2013 ????

$100,000

FY2012-13 Budget

ACT 2011 BUD 2012 BUD 2013

6100 Travel $30,000 $50,000 $40,000

6140 Postage $25,000 $30,000 $15,000

6340 Contract Svcs $20,000 $20,000 $45,000

Total $75,000 $100,000 $100,000

FY2012-13 Budget

• Cell phones– Removed from IRS “Listed Property” list– Separate instructions may be forthcoming.– Departments must still submit request form for

new phones or changes in plans, even if money approved in budget

• Postage– Rates may increase to $0.46, post cards to $0.30

Forms

• Operating Forms– Form A – Budget Request– Form B – Student Employment– Form D – Equipment, Furniture & Fixtures

• Form D is used for items costing more than $500 and having a useful life of more than 1 year.

• Other Forms (Use if necessary)– Form C – Temporary Summer Positions– Form F – Promotions, Re-classifications and/or Salary Adjustments

• Separate Consideration– Form E – Facility Projects

• Refer to the web site for additional information and instructions

Status will change to SUBMITTED

Form A = $ Budget Request

B & D (back-up

info Form A)

C, E, F Lets Budget

Manager know if they have a request

Form A

• You have the option to review the budget information on screen or download to Excel.

• To simplify the task, salary, benefit, insurance and basic and toll telephone items have been omitted from this budget request form.

• Budget request must be manually input for each object code in whole dollars.

• Once Form A is completed, click “Subtotal Form A” and the top part of the screen will advise you of your total budget request for 2012-13.

• If there is an increase above 0.0% you will need to either adjust your budget request or provide justification in that section.

Forms B• Form B: is a tool to help compute the budget request for Student

Employment and should cover only academic year student employment.

• Financial aid students are encouraged to work during the school year and we should make every effort to provide maximum opportunity for them to do so.

• As you contemplate the composition of your student work force for the coming year, please keep in mind that student jobs will be classified into level grades as outlined below.

• Contact Bill Pottle (ext. 4130) should you have questions regarding student employment.

Next Steps

• Remember – 5pm Friday, October 21• Total non-comp budget increases for an area limited to 0%

over last year’s budget• Instruction Overview on the web-site:

– Restricted Funds – Scott Smith x4123– Student Employment Form B – Bill Pottle x4130– Cell Service – Ken Gagnon x4239– Facility Projects – Form E – Kelly Doran x5031– Computer Hardware & Software Requests – Ray Phillips x4209

Contact

• Office of Financial Planning will be consulting with areas as necessary.

• Questions call Scott Jones x5522 or Nora Dore x5521.• Complete budget information:

http://www.colby.edu/administration_cs/financialplanning/budgets/fy2013.cfm