One Way is Not Enough: Multidimensional Financial Management in Continuing Education Presented by Dr. Barbara Audley Executive Director Extended Education and Summer Programs Western Washington University

Management Structure Person who can focus on the over-all financial health of the organization Professional accountant Experience at a high enough level to understand the over-all operation Auditing view

A Short Accounting Lesson Fund Accounting A beginning balance --New expenditures + New Revenue -- An Ending Balance

And… Enterprise Accounting + Revenue - Expense Net Balance (+/-)

So… Live in the Fund World Do Business in the Enterprise World

Rule-Makers AICPA NACUBO WACS University Policies

Enterprise Systems Banner PeopleWare SAP

Challenges 2 Systems of Record-keeping 4 Systems of Rule-making An institutional computer system focused on one system of record-keeping Financial viability requiring the alternate system A lack of understanding of the need to know in a different format

How to Proceed Always balance to the University’s accounts Design reports to meet your needs Develop consistent procedures to report data Customize reports to management and program needs

EESP’s System Summary of Funds in Fund Accounting Terms Monthly Beginning balance Revenue Expenses Ending Balance Monthly

Sample Report

Program Reports By program/site By programs of the same type e.g., Elementary Education Non-credit certificates By sponsor e.g. College of Education Continuing and Independent Learning

Sample Report

Some Highlights Annual Budget EESP Share off the top Monthly activity and year-to-date Semi-annual re-evaluation after December closes

Annual Budget Based on enrollment projections—conservative Based on prior year expenditures—add inflation Adjusted for any forecasted major changes 5% contingency

Annual Budget Sample Report

Program-specific Reports One site/multiple programs One program/multiple sites

Program-specific Reports (sample)

Overhead Accounts Segregate EESP costs from program costs Transfer revenue from programs to overhead costs

Revenue-Sharing EESP charges a support fee to co-sponsored programs Zero out at year end Various models: 20% of gross revenue Sliding scale based on enrollment 15% of gross revenue Negotiated Based on services provided

Program Reserves Program Reserve Program Development Reserve – new projects Disability Reserve –

Management Strategies Programs evaluated based on current year activities only Ending balances transferred to reserve accounts

Enrollment Reports Show problems at beginning of cycle Provide picture of whole operation Identify trends before financial impacts obvious Identify gaps in services Quarterly with comparisons and annual total

Enrollment Reports (sample 1)

Enrollment Reports (sample 2)

Forecasting A work in progress Students do what they will A mature structure Challenge: to determine revenues necessary to cover existing costs Turn into data that non-financial program managers can use and implement

Break Even Analysis

The Next Step Trend analysis useful here Over time what is the average credits per student enrollment for each program, each site Again, information in a form non-financial managers can use Builds in student behavior

Questions?