budget model results fiscal year 2011. prior budget system featured central control and fixed...

University of Michigan - Flint

Budget Model ResultsFiscal Year 2011

Introduction

• Prior budget system featured central control and fixed budgets

• Current budget system is variable with decentralized decision-making

• Current system began in July 2005

• This report summarizes results for the fifth year under the current system.

Annual Budget Cycle

Current year budget

Compare budget to actual performance

Gather information regarding changes to next year’s revenue

and expenditures

Model a balanced budget and get Regent

approval

Allocate marginal revenue to

departmental groups at the start of the new

fiscal year

Allocation of Marginal Revenue

Change in Tuition RevenueAllocate based on predetermined % to Academic and Support units

Change in FeesAllocate 100% to unit owning fee

Change in State AppropriationsAllocate based on % of total budget

Change in Other RevenueAllocate based on % of total budget

Academic UnitsCAS, SEHS, SHPS, SOM, OEL

Dean determines appropriate allocation method within unit

Support UnitsChancellor, Provost, Associate Provost,

VCBF, DSAExecutive Officer determines appropriate

allocation method within unit

General Administration

•Systems contracts•Business operations

recharge•Unemployment

compensation•Tuition reimbursement•Utilities (Electricity,

Natural Gas, Fuel Oil, Water & Sewer)

Academic Units

•LEO salary increases•Faculty promotion

increases•Any initiatives applicable

to academic units

Support Units

•Student aid increase•Union salary increases•Any initiatives applicable

to support units

Unavoidable Costs, Initiatives and Student AidFunded by all units, based on % of total budget

Settlement ProcessTiming of Transfers• Fees – each semester• Special programs – each semester• Tuition – end of year

Updates• Provided during the year

Setting FY 2011 Budget Revenue Targets:

• Undergraduate – assumed tuition up 3.9% and enrollment up 4%

• Graduate – assumed tuition up 2.9% and enrollment up 4.8%

Change in State Appropriations

Change in Fixed Costs Note: Fixed costs include utilities, debt service payments,

maintenance contracts, business operations and insurance recharges.

FY 2011 Results

Actual Budgeted Difference

State Appropriations $ 20.9M $ 20.8M $ 0.1M

Tuition & Fee Revenue 70.7M 67.6M 3.1M

Other Revenue 0.9M 0.6M 0.3M

Total $ 92.5M $ 89.0M $ 3.5M

• Total General Fund revenue above budget: $3.5M

General Fund Budget:Actual Revenue vs. Budgeted

Revenue

$0M

$20M

$40M

$60M

$80M

$100M

FY07 FY08 FY09 FY10 FY11

General Fund Budget History

Actual Budget

State Appropriations:Actual vs. Budget

$0M

$20M

$40M

$60M

$80M


State Appropriations History

Actual Budget

Tuition & Fee Revenue:Actual vs. Budget

$0M

$20M

$40M

$60M

$80M


Tuition & Fee Revenue History

Actual Budget

Tuition & Fee Revenue Results

$0M

$5M

$10M

$15M

$20M

$25M

$30M

$35M

$40M

$45M

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

College of Arts & Sciences

Actual Revenue Revenue Target Budget (Including Year End Settlement)


$0M

$1M

$2M

$3M

$4M

$5M

$6M

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

School of Education & Human Services



$0M

$2M

$4M

$6M

$8M

$10M

$12M

$14M

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

School of Health Professions & Studies



$0M

$1M

$2M

$3M

$4M

$5M

$6M

$7M

$8M

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

School of Management


Summarized Results for Support Units

* Includes Chancellor, Provost, Associate Provost, Vice Chancellor for Business & Finance, and Division of Student Affairs.

$0M

$5M

$10M

$15M

$20M

$25M

$30M

$35M

$40M


Budget History for Non-Revenue Generating Units*

Base Budget + Fee Allocation Additional Funds from Year End Settlement

Resources

VCBF Office Dave Barthelmes

Financial Services Jerry GlascoChristy

BrownellShelbie Perrin

Website http://www.umflint.edu/vcbf/Budget%20Model.htm

Questions

budget model results fiscal year 2011. prior budget system featured central control and fixed...

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