Budgeting Basics-Taking an All Funds Approach

Northern Arizona UniversityUniversity Budget Office

State appropriation funding has decreased from nearly 40% of funding sources in FY08 to 23% in FY14◦ Tuition and Fees, Government Grants and Contracts, and

Auxiliary funding sources have increased during this time

Funding Shifts

% of Total Funding SourcesFY14 Budget FY13 Act FY12 Act FY11 Act FY10 Act FY09 Act FY08 Act

State Appropriation 23.4% 23.3% 24.8% 29.5% 31.5% 34.7% 39.8%Tuition and Fees, Net 38.6% 37.5% 35.7% 32.3% 29.7% 27.5% 24.8%Government Grants and Contracts 16.9% 16.8% 17.8% 18.1% 16.7% 14.3% 14.4%TRIF 2.4% 2.5% 2.5% 2.5% 2.6% 3.0% 4.1%Auxiliary 10.8% 11.0% 10.3% 10.4% 10.0% 9.6% 9.0%Private Gifts, Grants and Contracts 2.8% 2.9% 2.8% 2.1% 3.0% 3.0% 3.5%Other 5.1% 6.0% 6.1% 5.2% 6.5% 8.0% 4.5%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

State Budget continues to be significantly impacted from the reduction in General Fund Appropriations◦ FY13 marked the first year General Fund Appropriations

made up less than 50% of the initial State Budget◦ Increased funding from tuition collections has helped

offset the 31% decline in general fund appropriation since 2008

State Funding

General Fund Tuition Total StateAppropriation Collections Initial Budget

FY08 77.1% 22.9% 100.0%

FY09 75.4% 24.6% 100.0%

FY10 64.4% 35.6% 100.0%

FY11 62.0% 38.0% 100.0%

FY12 51.0% 49.0% 100.0%

FY13 49.7% 50.3% 100.0%

FY14 47.8% 52.2% 100.0%

Beginning Balance; Revenue; Net Transfers In◦ Providing significantly more sources of funding to

support unit operations 65% growth from FY09 actual funding sources to

FY14 budgeted funding sources

Local (Designated/Auxiliary) Funding

BB Revenue Net Transfers Total Growth % Growth $FY09 act 35,118,431 91,155,860 (3,461,139) 122,813,151

28.6% 74.2% -2.8%FY10 act 37,947,339 102,741,753 6,421,957 147,111,049 19.8% 24,297,897

25.8% 69.8% 4.4%

FY11 act 56,469,219 116,775,502 (245,175) 172,999,546 17.6% 25,888,497 32.6% 67.5% -0.1%

FY12 act 68,192,065 127,590,116 (9,365,780) 186,416,400 7.8% 13,416,854 36.6% 68.4% -5.0%

FY13 act 70,196,810 133,672,815 4,996,962 208,866,588 12.0% 22,450,187 33.6% 64.0% 2.4%

FY14 bud 67,841,715 132,955,053 2,212,884 203,009,652 -2.8% (5,856,935) 33.4% 65.5% 1.1%

Impact from adding local funding resources to state resources is significant for all units

Combined State and Local Resources

FY14 Original Funding Resources State Resources-Initial State Budget Local Resources BudgetedSalary ERE Non-Personnel Total BB-Actual Revenue Net Transfers Combined % Increase

President 2,819,267 1,415,171 4,234,438 992,453 20,400 892,100 6,139,391 45.0% Athletics 2,303,649 4,450 2,308,099 1,921 3,007,210 6,277,509 11,594,739 402.4% Research 1,440,483 104,111 1,544,594 2,039,020 2,172,894 1,931,110 7,687,618 397.7% Provost 89,261,582 9,001,059 98,262,641 24,336,214 23,581,920 3,614,460 149,795,235 52.4% Finance & Administration without Utilities Dept 11,666,014 1,510,717 13,176,731 9,958,044 13,373,208 2,038,998 38,546,981 192.5% Enrollment Management without RSA 7,140,957 3,669,177 10,810,134 20,633,957 62,388,805 (14,463,703) 79,369,193 634.2% University Advancement 1,684,969 442,776 2,127,745 1,609,893 4,270,498 3,214,024 11,222,160 427.4% Information Technology Services 7,984,141 2,371,832 10,355,973 500,233 6,425,400 843,007 18,124,613 75.0% Extended Programs & Distance Learning 13,588,631 2,739,267 16,327,898 7,696,498 17,714,718 (2,134,621) 39,604,493 142.6% Planning, Budget and Institutional Effectiveness 1,442,240 137,723 1,579,963 73,483 - - 1,653,446 4.7%

Subtotal 139,331,933 21,396,283 160,728,216 67,841,715 132,955,053 2,212,884 363,737,868 126.3%

Important to incorporate all funding sources during the budgeting process and throughout the year◦ Helps to determine what resources are available to fund University,

Division and Department priorities Questions to further clarify your decisions

◦ What are your recurring expenses (e.g. people) and what are the changes you expect to those recurring expenses (either new ones or ones that should/need to end)? Should/Could they be funded on state funds or local funds?

◦ What are your 1 time expenses (operations/capital/new initiatives)? Do you have room for those expenses on your state funds (if expenses are

allowed) or do you have local funds to cover it?◦ Do you have funding to cover your expenses through state funds,

beginning balances, new revenue? Is your revenue a recurring revenue stream or a one time event?

◦ Do you expect to see a decrease or increase in your local ending balance compared to your beginning balance?

◦ What other changes do you expect?

All Funds Budgeting

What additional transactions do you expect to see before year end that will impact your YTD revenue and expense?

How do your YTD expenses/revenues compare to the projected amount for the end of the year?◦ If you are projecting LESS than your YTD amounts,

what transactions do you expect that will decrease the amount by the end of the year?

◦ If you are projecting MORE, is the additional amount realistic given the amount of time left in the year?

General questions to consider during budgeting process

NSTAR Reports◦ Finance◦ HR

Salary Change Report (JFR access on Budget Shares drive)

Budget Adjustments and Local Fund Transfer listings (JFR Access on Budget Shares drive)

Business Objects Reports◦ Transaction Detail◦ Status of Funds◦ Payroll

PS Financials◦ Budget Overview

Resources to use in Budgeting