1. 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

2. 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

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

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

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

6. Rule-Makers
AICPA
NACUBO
WACS
University Policies

7. Enterprise Systems
Banner
PeopleWare
SAP

8. 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

9. 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

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

11. Sample Report

12. 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

13. Sample Report

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

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

16. Annual Budget Sample Report

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

18. Program-specific Reports (sample)

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

20. 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

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

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

23. 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

24. Enrollment Reports (sample 1)

25. Enrollment Reports (sample 2)

26. 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

27. Break Even Analysis

28. 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

29. Questions?