Annual Budget Control Officers Meeting October 27, 2015 ATC Auditorium 3:00 - 4:30 p.m.

Agenda 1.Welcome – Steve/Lisa Audit/Budget Results – Jim Mid Year & Budget Timeline – Jim 4.Zero Based Budget Process – Lisa 5.Budget Review 2.0 – Jim 6.Employee Reimbursements/Travel – Cherry 7.Department Planning Update – Donna

Audit/Budget Results  Unmodified or “clean” audit opinion  No management letter comments (6 th year in a row!)  Summary of General Fund: * Includes transfers of $1.3 million to the Plant fund, and repayment of the $1.7 million VESP liability. Revenues $107,581,340 Expenses & Transfers* ($107,581,340) Add to Net Position $-0- Net Position at 6/30/15 $11,121,515 Net Position/Revenues (BOT target = 10% - 15%) 10.34%

Revenue Variances BudgetActualVariance Tuition/Fees $53,781,353$53,669,342$(112,011) Property Taxes $28,844,477$28,955,402$110,925 State Aid $20,895,956$22,801,758$1,905,802 Other $1,943,286$2,154,838$211,552 Total $105,465,072$107,581,340$2,116,268

BCO Controllable Expense Variances BudgetActualVariance Students$1,398,585$1,091,267$307,318 Contract Svcs$4,204,181$3,943,223$260,958 Supplies/Repair$5,246,674$4,592,264$654,410 Rentals$609,518$468,023$141,495 Other$1,308,887$1,213,001$95,886 Equipment$370,581$229,506$141,075 Total$13,138,426$11,537,284$1,601,142 Overall, 87.8% of controllable budgets were utilized.

BCO Controllable Expense Variances Fiscal YearTotal Cost Centers# Overspent% Overspent % % % % % % % Continued Good Work by All of You! Thanks

Budget Timeline – Key BCO dates: Dec 4, 2015: mid year budget requests due via on-line submission** Jan 21, 2016: Department planning, budgeting & space planning overview Feb 26, 2016: IT project requests due via on-line submission Mar 18, 2016: department plans, budget requests and space requests due via on-line submission ** Mid year criteria will be the same as in On-line forms are now available in PeopleSoft

Mid Year and Beyond balanced budget adopted by BOT in June: Total Revenues$107,431,692 Total Expenditures & Transfers$107,175,702 Change in Net Assets (maintains10%) $ 255,990 Significant Assumptions:  5% decline in enrollment, and implementation of differential tuition  Increases of 2% for property taxes and 1.3% for state aid  Staffing reductions recommended by the Ad Hoc budget committee and EBCO’s of 24.5 FTE’s, plus $850,000 in projected VESP savings  Reduction of $242,000 from various controllable line items  Restoration (to $875,000) of the budgeted transfer to the Plant Fund for deferred maintenance and the IT tactical plan.

Mid Year and Beyond  Total fall 2015 billing units are down approximately 6.7%. However non- resident and out of state is ahead of budget, thus the total revenues are on target.  Winter 2016 enrollment will be a key indicator of what we’ll need to project for  Under-spending in allowed us to fully repay the VESP liability and maintain our budget stabilization fund.  However, with the implementation of the controllable reductions recommended by the Ad Hoc committee, we will not likely have the same level of unspent funds at the end of  We also have a need for future reinvestment in academic programs and capital resources.  Accordingly, we are embarking on a two-year effort to “re-set” controllable budgets and allow EBCO’s to re-allocate resources in the most efficient way possible………

Zero-Based Budget (ZBB) Process What is the goal of ZBB?: GRCC's zero-based budgeting process is not a tool that is intended to reduce the College's overall operating budget or to increase it. It is a tool intended to help us do the following: 1.Re-view our unit budgets - to look at our budgets again from a fresh perspective 2.Re-allocate funds among unit budgets - to potentially shift funds from areas that don't need as much to others that need more 3.Re-set our unit budgets - to ensure that our historical budgets, which have not been reviewed for many years, are appropriate to current realities and, if not, to adjust them accordingly In short, we are engaging in ZBB as another means to help us assure that we have our financial resources where we need them to be.

Zero-Based Budget Process What is ZBB at GRCC? A one-time opportunity to build certain controllable budgets from the “bottom up” (i.e. start from scratch). Disregards past budgets, and focuses on what is needed today. Who will be involved? For : All departments reporting to Lisa, Dave, Kathy and Steve. Academic & Student Affairs will do ZBB for

Zero-Based Budget Process What will this look like?

Budget Review 2.0 A small team has been working on a complete revision of the Budget Review process – Budget Review 2.0 Incorporating feedback received during the first 3 year cycle, the new process: 1.Shorter!! 2.Focus on budget metrics 3.Is more quantitative, less qualitative 4.Considers trends (vs. only most recent year) in enrollment and staffing 5.Includes a revised benchmarking section that specifies “target” institutions and considers the process, as well as the result, in scoring.

Budget Review 2.0 (cont’d) Timeline: Revised process has been submitted to Exec. Leadership Documents to be finalized in winter 2016 Initial round of submissions and scoring to begin in fall 2016

Employee Reimbursements: ALL REIMBURSEMENTS ARE NOW PAID ON THE EMPLOYEE’S PAYCHECK! The details of this reimbursement will appear on your payroll remittance advice that can be accessed online. Nontaxable employee reimbursements will have no effect on payroll taxes when paid on the employee’s paycheck. You will receive an notification from ImageNow when your reimbursement has been approved. Then, the reimbursement will be paid on the next available paycheck.

Employee Reimbursements (cont’d): If you would like to view your reimbursements, you can access them anytime on campus via WebNow at: or at (you must login using your GRCC Network User Id and Password to view your reimbursements). Please do not send duplicates. Stamp your requests to show that they have been sent. Reimbursement forms and updated Reimbursement Procedures can be found at: mbursementrequestformsandinstructions mbursementrequestformsandinstructions

Employee Reimbursements (cont’d): In a nutshell………. Effective 1/1/2015 mileage is.575/mile. Tipping is capped at 20% on allowable expenses. Please submit itemized meal receipts as policy allows for the maximum reimbursement of $25 without them. Hotel receipts must also be itemized to verify allowable expenses. GRCC Employee Reimbursement Policy 11.1 can be found at:

Travel Arrangements: Prior to making travel reservations, secure the approval of the Appropriate Dean or BCO by completing an electronic Leave of Absence Form at: Once approval is received, airfare may be purchased by contacting Cherry at x2177 or via at This should be done at least 30 days in advance to receive the best pricing. You may purchase 2 nd class airfare on your own and submit for reimbursement following procedures in the Employee Reimbursement Policy. GRCC Travel Policy 11.4 can be found at: NOTE:If you are traveling in March, 2016, book your flights now! Spring Break is extremely busy and availability drives the price. Book early and avoid the higher cost.

Department Planning Update  Mark your calendars: Thursday, Jan 21, Department Planning, Budgeting, Space Planning & Technology Overview, 1:00 to 2:30 p.m., 108 Sneden

Questions/Comments?

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