FY Budget Overview October 4, 2012 CONFIDENTIAL – INTERNAL USE ONLY

Agenda Financial Context for FY2014 Budget –FY2012 Year End Review –FY2013 and beyond Preparing the FY2014 Budget –Timeline and Key Dates –Strategic initiatives –Budget Guidelines –Overview of Basic Forms Questions

FY2012 Year End Review FY2012 – yet another successful year Success due to entire Colby campus realizing the challenges ahead (in $000s) Total Revenues $140,176 Total Expenses/Deductions$139,908 Net$ 268

Endowment Returns FY2012 Return in top quartile for college/university endowments FY2012 Year End Review

Gifts Gift cash flows stable in FY2012

FY2012 Year End Review Debt Colby issued bonds for the Biomass facility and new Science building in FY2012

FY2012 Year End Review Revenues Stable growth over the past decade Increase in endowment utilized for operations

Year End 2012 Review Expenses Growth in compensation, financial aid and debt service Non-compensation flat

Outlook: 2013 and 2014

Outlook: FY2013 Current Fiscal Year FY2011, FY2012 and now FY2013 each show steady state results. We are in the processing of adding 20 new FTEs as part of our strategic plan. Biomass plant on line. New storage facility, Museum and Science building under construction. Endowment has been at pre-2008 levels for two years now. Long-range financial model shows balanced to positive results.

Outlook 2013 Concerns: Local / State: local and state economies lag the nation’s economy, which is not strong either. National: looming “fiscal cliff” – expiration of tax cuts and implementation of mandatory budget cuts in January, 2013 unless Congress acts. International: no resolution to European euro crisis; “hot spots” throughout the Middle East Most will effect the endowment to some degree (positive or negative), but other effects may be evident as well.

Outlook 2014 Concerns: Is the higher education market in this country still viable, and for how long? Is there a bubble looming?

Budget FY

BUDGET FY2014 Timeline –September 28, 2012– “Budget Call” notice sent –October 22, 2012 – Budgets due from all departments (sooner works, too) –November 16, 2012 – Office of Financial Planning completes first draft of Preliminary Budget –December, 2012 – Conference call with Budget and Finance and Compensation Committees –February, 2013– Budget and Finance Committee approves the Preliminary Budget –February - March, 2013 – Office of Financial Planning updates key assumptions and prepares final Proposed Budget –April, 2013 – Board approves Proposed (Final) Budget

Budget FY2014 Strategic Initiatives: Staffing –10 new faculty FTEs over the next three years –Academic support positions –Museum staffing –Benefits Financial aid –New aid awards and other support Capital projects –Operation costs for museum, science, and storage projects Other –On-going support for gift and grant-funded initiatives

BUDGET FY2014 No more than 1% non-compensation increase No more than 2% student worker increase Web form will calculate the blended amount available Requests for deviations must be justified in writing and are not guaranteed

BUDGET FY2014 How to Calculate FY Budgets –Review budget-to-actual spending patterns and strategic priorities for your area –Not all items need to be kept at the same level - remember this is YOUR management document –Consult with your vice president or dean as appropriate during the preparation process –Consult with the Office of Financial Planning –Budget request sent to PRIMARY Budget supervisor only; re-assignment to two additional supervisors possible

BUDGET FY2014 ACT 2012BUD 2013BUD Travel $30,000 $50,000 $40, Postage $25,000 $30,000 $15, Contract Svcs $20,000 $20,000 $46,000 Total $75,000 $100,000 $101,000

BUDGET FY2014 Budget according to needs, but we do not subscribe to the “use it or lose it” approach We remain “bottom line” focused across all object codes across all VP areas If you think you need a capital project (Form E) you should have started in September, but if you have not, start ASAP by consulting with PPD If your budget includes cell phones you must consult with Ken Gagnon (x4239) on rates and equipment costs

Forms

BUDGET FY FORMS Operating Forms –Form A – Budget Request –Form B – Student Employment –Form D – Equipment, Furniture & Fixtures Form D is used for items costing more than $500 and having a useful life of more than 1 year. 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

BUDGET FY FORMS

Form A = Budget Request Forms B and D = Backup Data for A Forms C, E, F = Submit if necessary

BUDGET FY FORMS

BUDGET FY2014 – FORM A

BUDGET FY2014 – FORM B

BUDGET FY2014 – FORM C

Remember – 4:30pm Monday, October 22 Total non-compensation items limited to 1% increase over last year’s budget; 2% for student workers Instruction Overview on the web-site: –Restricted Funds – Scott Smith x4123 –Student Employment Form B – Bill Pottle x4130 –Cell Service – Ken Gagnon x4239 –Facility Projects – Form E – Kelly Doran x5031 –Computer Hardware & Software Requests – Ray Phillips x4209 BUDGET FY Reminders

Remember – 4:30pm Monday, October 22 Total non-compensation items limited to 1% increase over last year’s budget; 2% for student workers Instruction Overview on the web-site: –Restricted Funds – Scott Smith x4123 –Student Employment Form B – Bill Pottle x4130 –Cell Service – Ken Gagnon x4239 –Facility Projects – Form E – Kelly Doran x5031 –Computer Hardware & Software Requests – Ray Phillips x4209 BUDGET FY Reminders

Office of Financial Planning will be consulting with areas as necessary Questions? call Scott Jones x5522 or Nora Dore x5521 Web Site: