1. Final Budget 2014-2015 Office of the Vice President Finance Presented by: Mateusz Miadlikowski

2. Overview 1.Final Budget- Purpose 2.Process 3.Finances- breakdown 4.Funds- transfers 5.Current financial situation 6.Moving forward

3. FINAL BUDGET Purpose

4. Code: Article 8(4): –Final budget shall include the budget projections adopted by Council the previous year, the actual expenditures and revenues to date, variances, and the next fiscal year ‟ s budget projections for all the Society ‟ s operations, including but not limited to the business operations. –final budget shall provide a detailed breakdown of revenues and expenditures within each department of the Society, a department in this context meaning an individual student service, Commission, business, staff department or position, executive member, and so forth.

5. PROCESS Step by step

6. Process Internal review of Actuals 13/14- not final Departments: –Documents sent: handbook, budget template for each department –Required Documents: filled budget template, priorities, justifications, statement, presentation Review by the VP Finance Individual meetings with the heads of departments- VP Finance and Executive Director Final Review, adjustments, consolidation Submission to the Budget Committee Budget Committee’s review –Meetings with heads of departments and executives Adjustments of the Budget, provision of additional information Submission to the AMS Council

7. Features of the 2014-2015 Budgeting Process Decentralized process –Involvement of departments/ consultations Bottom- up approach –Involvement of all departments Ongoing consultations –Ongoing communication/ multiple rounds of review Zero based –Full justification of expenses Sustainability and future planning –Long term vision/ fiscal year in perspective Creative thinking –Not following previous budgets/ reorganization Realistic planning/avoiding budgeting slack –Overestimation of expenses/ underestimation of revenues –Solution: Required justifications and multiple rounds of review

8. Proposal Requirements Purpose Goals Projects/Functions Rank & Prioritize Formulation of Expenses Justification Filled out budget template

9. Evaluation Identified Purpose Realistic Goals Prioritized Projects Proper Justification of each expense Metrics Student Focus- AMS mission statement Realistic and Researched Numbers AMS Mission Statement To improve the quality of the educational, social, and personal lives of the students of UBC. AMS Values Honesty Effectiveness Accountability Respect Teamwork

10. FINANCES Breakdowns

11. Revenues Total fees: 17,562,124 Business Contribution: 485,694 Investment Returns: 275,000 TOTAL REVENUE: 18,322,818

12. Student Fees

13. Expected Number of Students –Average of the previous 3 years 46,604 Students

14. Discretionary Funds Non- discretionary allocations: 15,760,023 Net Discretionary Income: 1,776,998 Transfers from funds: 432,372 Businesses: 485,694 Investments : 275,000 Administration: - 809,828 Total Income: 2,185,339 FY 2013-14: 1,161,256

15. Total Operations Income Revenue Total Fees: 17,562,124 Non- Discretionary -15,760,023 Business 485,694 Investments 275,000 Administration -809,828 ________________________ Net Dis. Income $1,752,967 ________________________ Total $ 2,185,339 Transfers SASC: 130,642 Services 239,502 New SUB 26,078 External/University 37,650 ________________________ ______ Add Net Dis. Income $432,372

16. Expenditures Total Student Government 764,780 Total Student Services 464,869 Total Programs and Publications 348,062 Contingency 87,648 TOTAL EXPENDITURE: 1,577,711

17. Transfers from funds January 2014 Referendum eliminated fees: –University and External Lobbying- $4.14 –Services- $7.25 But the restricted funds still exist: –U & EL- $40,462.81 –Services- $561,077.46 Plan: –use the funds until they reach zero –eliminate the structural deficit Without the transfers still in a large surplus of: $242K

18. SURPLUS Rationale

19. Surplus High Surplus due to: –Increased businesses’ contribution $ 485K estimated revenue $ 380K actual net contribution FY 13/14 –Budgeted $106K New SUB –New structure of student fees Significant increase in discretionary funds But increased contingency –Increased number of members –Transfers from the funds

20. Surplus Projected Surplus FY 2014/15 $519,980 Budget Committee shall: –make recommendations about dealing with deficits, surpluses, and unallocated revenue from donors and sponsors, in accordance with Section IX B, Articles 4 and 5; –If there is an unforeseen surplus, it shall be deposited in the AMS Endowment Fund Protection from unpredictable businesses’ contribution Need to eliminate the deficit first

21. Accumulated Deficit Previous Structural Deficit –Ending FY 13/14 with a surplus: $97,783 Lower expenditures- Student Government and Programs/Publications Higher business contribution Higher investment returns Current accumulated structural Deficit: -$196,242

22. Moving forward Projections: –Elimination of the entire deficit by the end of FY 14/15 -196K + 519K = + 323K Amendments Event Department: –Block Party –“Welcome Back Concert”