2016-17 Annual Budget Control Officers Meeting November 2, 2016 ATC Auditorium 8:30 - 10:00 a.m.

Agenda Welcome – Lisa Budget/Facilities Update – Lisa 2015-16 Audit/Budget Results – Jim 2017-18 Timeline & Department Planning – Jim Mid Year & Beyond – Lisa Supplier Diversity Update – Mansfield Pro-Cards – Mansfield

2015-16 Audit/Budget Results Unmodified or “clean” audit opinion No management letter comments (7th year in a row!) Summary of General Fund: * Includes transfers of $4.5 million to the Plant fund Revenues $109,858,392 Expenses & Transfers* ($109,056,648) Add to Net Position $801,744 Net Position at 6/30/16 $11,923,259 Net Position/Revenues (BOT target = 10% - 15%) 10.85%

2015-16 Revenue Variances Tuition/Fees Property Taxes State Aid Other Budget Actual Variance Tuition/Fees $52,244,388 $53,118,951 $874,563 Property Taxes $29,711,482 $29,903,376 $191,894 State Aid $24,597,084 $24,637,438 $40,354 Other $1,953,286 $2,198,627 $245,341 Total $108,506,240 $109,858,392 $1,352,152

2015-16 BCO Controllable Expense Variances Budget Actual Variance Students $1,391,165 $998,915 $392,250 Contract Svcs $4,288,297 $3,713,703 $574,594 Supplies/Repair $5,073,839 $4,781,336 $292,503 Rentals $580,080 $440,395 $139,685 Other $1,271,031 $1,348,563 ($77,532) Equipment $344,581 $250,185 $94,396 Total $12,948,993 $11,533,097 $1,415,896 Overall, 89.1% of controllable budgets were utilized.

BCO Controllable Expense Variances Fiscal Year Total Cost Centers Overspent > $1K % 2015-16 126 19 15.1% 2014-15 125 15.2% 2013-14 127 18 14.4% 2012-13 120 15 12.5% 2011-12 122 15.6% 2010-11 118 16.1% 2009-10 115 30 26.1% 2008-09 102 45 44.1% Continued Good Work by All of You!

2017-18 Budget Timeline – Key BCO dates: Dec 2, 2016: 2016-17 mid-year budget requests due in PS Mid year criteria will be the same as in 2015-16 On-line forms now available in HRPROD. Be sure to select “Create Midyear Request” and then “2016-2017 Fiscal Year” from the dropdown March 3, 2017: 2017-18 Department Plans, ZBB Templates, Budget Requests and Space Requests due to immediate supervisors (if not an EBCO) March 17, 2017: Annual IT project requests due via on-line submission March 17, 2017: 2017-18 Department Plans, ZBB Templates Budget Requests and Space Requests due to EBCO’s

Department Planning Workshop Mark your calendars: Thursday, Jan 19, 2017 - Department Planning, Budgeting, Space Planning & Technology Overview, 1:00 to 2:30 p.m., 108 Sneden Not mandatory Recommended for new BCO’s or those new to GRCC (but all are welcome) You may have your support staff attend with you For questions or further info, contact Donna Kragt in IRP

Mid Year and Beyond 2016-17 balanced budget adopted by BOT in June: Total Revenues $107,968,904 Total Expenditures & Transfers $107,927,432 Change in Net Assets (maintains10%) $ 41,472 Significant Assumptions: 6% decline in billing units Increases of 1.75% for property taxes and 1.4% for state aid 28 positions vacated due to the VESP. Seven were not refilled and represent salary reductions. Remaining refilled at generally lower salaries and/or reallocated to other areas. New programming for the college success center (including two new success coaches), mandatory orientation and the brewing program. Maintain (at $875,000) of the budgeted transfer to the Plant Fund for deferred maintenance and the IT tactical plan.

2016-17 Mid Year and Beyond Total fall 2016 billing units are 3.1% AHEAD of budget. Extrapolated to winter and summer, this would mean additional gross revenue of over $1 million. Winter 2017 enrollment will be a key indicator of what we’ll need to project for 2017-18. There is uncertainty around how much we will be impacted going forward by the state’s personal property tax reform. We are assuming that we will receive $350K in reimbursement from the state for lost revenue in 2016-17 (nothing to date). Negotiations are still in progress on a 2016-19 FA contract The health care “cap” will increase 3.3% for 2017-18 and any MPSERS changes are not yet known. The ASA division will be completing ZBB for 2017-18 We also have a need to continue to plan for future reinvestment in academic programs and capital resources.

Supplier Diversity Update:

Supplier Diversity Update: $2,001,055.68

Supplier Diversity Update:

Supplier Diversity Update: www.grcc.edu/purchasing/resources

Pro-Cards: Please be informed that most GRCC Travel Cards expired 9/30/16. Replacement cards were issued, however we will receive new chip cards later this month. Thanks to those of you who agreed to wait for the chip card. Please be informed that most GRCC Procards will expire 11/30/16. New cards will be distributed Tuesday, Nov 8th, in the Enrollment Center from 8.30-11. Afterwards, cards can picked up at the Purchasing office. Security enhancements: Embedded chip Enhanced protection from unauthorized use Requires the chip to produce a single use code to validate the transaction Insertion in chip reader vs. swiping Wider use International Acceptance (Europe, Asia, Canada, Mexico and South America)

Questions/Comments?

Thanks for attending!