Office of Financial Planning

October 2009

FY2010-11 Budget Preparation

Agenda

• Financial Context for FY2011 Budget– FY2009 Year End Review– The Current Environment

• Preparing the FY2011 Budget– Timeline and Key Dates– Using Prior Data as a Guide– Overview of Basic Forms– Capital Project Requests

• Next Steps

• Fiscal year 2008-09 was among the most difficult in recent memory

• The economic downturn and turmoil in the equity and credit markets presented Colby with many financial challenges– Steep loss in endowment value– Significant losses on working capital– Brief, but deeply concerning, lack of access to working

capital– Reduced gifts to operations

FY2009 Year End Review

• The College acted to control expenses, with targeted reductions in key areas

• The College rallied to meet these challenges and obligations

• The College finished the year with an operating surplus, rather than a deficit, exceeding earlier projections

• We did not witness the same dislocations suffered by other institutions

FY2009 Year End Review (cont’d)

• Manage potential future financial pressures

• Faculty and staff salary increases

• Benefit cost increases

• Faculty positions

• Financial aid

• Programs and student life initiatives

• Renovation allocation and new facilities

Goals and Strategic Initiatives FY2010-FY2020

Outlook FY2011

• Q1 FY2010 estimates suggest positive year end results – but that means little for FY2011

• Market turmoil will still be with us – this is far from over

• Inflation and / or interest rates are a concern for their effect on the economy as a whole

• Federal and state government actions will be closely monitored

• Timeline– October 2, 2009 – “Budget Call” notice sent– October 23, 2009 – Budgets due from areas– November 20, 2009 – Office of Financial Planning completes first

draft of Preliminary Budget– December, 2009 – Conference call with Budget and Finance and

Compensation Committees– January, 2010 – Budget and Finance Committee approves the

Preliminary Budget– March, 2010 – Office of Financial Planning updates key

assumptions and prepares final Proposed Budget– April, 2010 – Board approves Proposed Budget

FY2010-11 Budget

• Preparing the FY2010-11 Budget– Total non-compensation budget increases for an

area limited to 0% over last year’s budget– 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

FY2010-11 Budget

Forms

• Basic Forms– Form A – Budget Request– Form B – Student Employment (provides schedule to feed Form A)– Form D – Equipment, Furniture & Fixtures (provides schedule to feed

Form A)

• 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

FY2010-11 Budget

Effect of 0% IncreaseTotal BUD 2009 $100,000

Total ACT 2009 $ 75,000

Total BUD 2010 $100,000

Total BUD 2011 ????

$100,000

FY2010-11 Budget

ACT 2009 BUD 2010 BUD 2011

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

Next Steps

• Remember – 5pm Friday, October 23• Total non-comp budget increases for an area

limited to 0% over last year’s budget• Restricted Funds – Scott Smith x4123• Student Employment Form B – Bill Pottle x4130• Office of Financial Planning will be consulting

with areas as necessary - budget questions call• Scott Jones x5522 or Nora Dore x5521