1. Budget 101: Athens Campus Budget Orientation
Budget Planning Council
9/30/11
This presentation is intended to provide a high-level overview of the Athens budget for members of the Budget Planning Council and other stakeholders with an interest in learning more about the budget.
The data supporting this presentation match the information in the Budget book on pages E.1, E.2, E.3, E.7, E.8 and G.1.
The complete Budget Book is located on the Budget Planning and Analysis web site:

2. Four Major University Budget Units
Different Missions – Separate Funding Sources – Separate Budgets
Athens Enrollments (Graduate and Undergraduate)
Instructional and Non-Resident Fees
General Fees (including Medical)
State Subsidy
Restricted Funds
Athens General Fund
Auxiliaries
(Housing and Dining
Plus Others)
Athens Students (Primarily Freshmen and Sophomores)
Housing Fees
Dining Fees
Regional Enrollments (Primarily Associate Degree and Undergraduate)
Instructional Fees and Non-Resident Fees
General Fees
State Subsidy (separate allocation)
Restricted Funds
University Outreach and Regional Campuses (UORC)
The budget for the entire university is broken down into four majors units. Each unit has a different mission and operates on different revenue streams so they have separate budgets with their own annual budget development process.
These four areas are:
The Athens General Fund – this budget is the main budget that supports activity on the Athens campus and is supported by the tuition, fees and state subsidy associated with the courses that are taught on the Athens campus along with the revenues associated with funded research.
Auxiliaries – this budget unit is associated with auxiliary operations that are designed to operate on their own separate funding sources. The largest auxiliaries are housing and dining but include others like parking, airport and telephone operations.
University Outreach and Regional Campuses – this is the budget for the five regional campuses and lifelong learning. These units have separate tuition rates and receive separate subsidy allocations from the state.
College of Osteopathic Medicine – like regional campuses, the medical school has its own tuition rate and receives a separate subsidy allocation from the state.
While these budgets are separate, there are interactions that take place between the Athens General Fund budget and the other three units since those units are served by the administrative structure in Athens and some of their services (human resources, payroll, accounting, budget, etc) are provided by Athens departments. Payments are made into the Athens budget to reflect this.
Medical Student Enrollments
Instructional Fees and Non-Resident Fees
State Subsidy (separate allocation)
Restricted Funds
College of Osteopathic Medicine (COM)

3. Four Major University Budget Units
Relative Proportions of Entire Budget
The relative sizes of the four major budget units can be seen here. The largest area is the Athens budget which is over $468M which is 62% of the overall $751M budget. This compares to a budget of $714 last year. This view does not include the OU Foundation or Capital budgets. The Foundation is a separate organization and governing board so its budget is not part of the annual budget process. The Capital budget is a separate allocation from the state which is restricted to large building projects. Those funds, therefore, cannot be spent on other things like salaries or travel.
There are still interactions between these other two budgets and the main university budget. For example, interest from the endowment of the Foundation supports activities (scholarships, professorships, etc) in the university budget. In addition, there are impacts to the university budget from capital projects. While the funds to construct a building are in the capital budget, the cost to operate the building will end up in the university budget. In addition, not all building activity occurs in the capital budget. For example, the Ping Center and Baker University Center were funded by bonds that are paid off by additional student fees. Projects like this as well as smaller scale renovations often due impact the main university budget.
Total budget = $751,223,000
FY11 = $714,891,000
Excludes Foundation and Capital Budgets

4. Restricted versus Unrestricted Funds
Within the overall $751M university budget, about $109M are restricted funds, which are dollars associated with grants and contracts. This portion represents the dollars that are spent directly on the activity of the grant and are not available to be spent on other activities. Of the four main budget units, the Athens Campus, College of Osteopathic Medicine and University Outreach and Regional Campuses have restricted funds within their budgets. Only Auxiliaries do not. The relative breakdown of restricted funds is shown in the bar. Once you take out restricted funds, the size of the Athens Campus budget drops from $469M to $390M. This is the portion of the budget that is subject to the normal Athens budget process and is the portion reviewed by Budget Planning Council.
Restricted = funds restricted to a specific purpose – e.g. grants and contracts
Unrestricted = funds that can be used for any purpose (tuition, fees, subsidy)
Values are in thousands

5. Sources of Restricted Revenue
For further information, here is the breakdown of the source of restricted funds. This includes all restricted funds from Athens, COM and UORC. The largest portion comes from federal grants. Since these funds are completely restricted, we will not spend any more time on this part of the budget.
Values are in thousands

6. The Unrestricted E&G Budget
Looking just at the unrestricted part of the budget, it is the slide for the Athens Campus ($390M) that BPC will be involved with.
We will see information about tuition and fee rates for the other units and our recommendations for compensation will influence what happens in those units.
There are also some movements of funds between Athens and these other units that we will see in the Athens budget
The Unrestricted Funds are referred to as the Unrestricted Education & General Budget. The Athens Campus portion of the budget is developed each year through the budget process. UORC, COM and Auxiliaries have their own budget process. Tuition and fee rates for these units are approved by the president and compensation increase are aligned with Athens increases.
Values are in thousands

7. Athens Unrestricted E&G Revenues
The next series of slides will breakdown the source of the $390M Athens campus budget. Most of the budget (86%) comes from revenue generated from instructional activity – students completing courses. The general fee accounts for 7% of our total revenues. An additional 4.5% (Other) comes in the form of royalties and indirect cost recovery (IDC) from funded research activity. The instructional process results in several types of revenue:
Essentially half comes in the form of tuition (both undergraduate and graduate) with an additional 9% coming from non-resident fees.
Less than 30% of our revenues come from the state through subsidy
The general fee is also assessed on a per hour basis but supports specific non-instructional activities
Others fees are course fees, fines and other charges for services
Values are in thousands
State Subsidy accounts for less than 30% of revenue
Subsidy and Tuition (instructional, general and non-resident) account for 90% of revenue
Other is primary Indirect Cost Recovery (IDC) and royalty income from research activity

8. Undergraduate Tuition and Fees
Undergrad
Resident
15139
Non-Resident
2094
Revenue projection is driven by two enrollment numbers that are fed into the tuition model
The model estimates revenues for Fall, Winter and Spring
Converts headcount into FTE based on previous year distribution of hours taken per term.
Includes overall retention of 94% Fall to Winter and Winter to Spring which is the net result of new enrollment, graduation rates and retention rates for all ranks
Summer is based on the previous year’s actual plus any tuition inflation
These projections are reduced for programs that are set up to capture and operate on their portion of tuition and / or fees.
Tuition and fees actually expendable in the budget are further offset by scholarships
Inst Fee
Non-Res Fee
General Fee
Fall
$ ,904,252
$ ,198,593
$ ,115,255
Winter
$ ,979,803
$ ,834,097
$ ,689,710
Spring
$ ,224,260
$ ,484,541
$ ,288,747
Summer
$ ,503,271
$ ,599
$ ,544,654
$ 144,611,586
$ ,161,830
$ ,
Inst Fee
Non Res Fee
General Fee
Projected Revenue
144,611,586
18,161,830
21,638,365
Education Abroad
487,485
43,000 -
Life Long Learning
1,403,460
107,000
244,260
Nursing
36,225
4,000
8,280
OPIE
1,619,775
1,870,000
Other
193,545
32,000
Sub-Total
3,740,490
2,056,000
252,540
Budgeted Revenue
140,871,096
16,105,830
21,385,825
For a more detailed understanding of how tuition and fee revenue are estimated for the budget, this slide illustrates the major steps and components. Separate projections are done for undergraduate and graduate enrollments. Here is the breakdown for undergraduate activity.
The starting point is an enrollment projection of the numbers of resident and non-resident students. This would include all enrollment segments on the Athens campus (new freshmen, transfers, continuing students, re-enrolling and relocating students). This headcount is converted into a full-time equivalent (FTE) number of students since not every student takes a full load. Tuition and fee rates are applied to these FTEs to estimate the revenues from each fee component – instructional fees (tuition), non-resident fees and general fees. For summer, revenue is simply projected from the previous summer revenues inflated by any approved fee increases.
Once the revenue projection is made, there are deductions for units that have special arrangements to capture their own portion of tuition and fees and use those revenues to pay for their own operations. These include units like Lifelong Learning, Education Abroad and OPIE. These deductions then reduce the amount of revenue available to spend on the main budget. To get closer to the actual amount of revenue available for the main budget, scholarships would also be deducted since they are essentially a discount that reduces the actual revenue taken in.
The net result is that undergraduate instruction brings in $114M in tuition and almost $28M to support general fee activities.
Total Tuition
156,976,926
Scholarships
25,
Net
131,710,969

9. Graduate Tuition and Fees
Revenue projection is driven by the two Athens enrollment numbers and the total number of Medical students for just the general fee
Graduate
Medical
Resident
1366
444
Non-Resident
1444 12
456
The model estimates revenues for Fall, Winter and Spring
Converts headcount into FTE based on previous year distribution of hours taken per term.
Includes overall retention of 94% Fall to Winter and Winter to Spring which is the net result of new enrollment, graduation rates and retention rates for all ranks
Summer is based on the previous year’s actual plus any tuition inflation
These projections are reduced for programs that are set up to capture and operate on their portion of tuition and fees.
Tuition and fees actually expendable in the budget are further offset by fee waivers and the general fee buy down
Inst Fee
Non-Res Fee
General Fee
COM GF
Fall
$ 6,753,365
$ 3,463,184
$ 1,035,122
$ 190,672
Winter
$ 6,352,072
$ 3,259,444
$ ,603
Spring
$ 5,972,609
$ 3,061,032
$ ,429
Summer
$ 2,540,242
$ 1,506,808
$ ,000
$ 111,506
$ 21,618,288
$ 11,290,468
$ 3,256,543
$ 683,522
Inst Fee
Non Res Fee
General Fee
Projected Revenue
21,618,288
11,290,468
4,194,674
Education Abroad
20,000
13,000 -
Life Long Learning
33,000
2,000
6,210
OPIE
214,000
215,000
Other
1,190,000
312,120
248,400
Sub-Total
1,457,000
542,120
254,610
Budgeted Revenue
20,161,288
10,748,348
3,934,216
A similar process is used to project the revenues associated with graduate programs.
As with undergraduate activity, the starting point is an enrollment projection of the numbers of resident and non-resident students. This headcount is converted into a full-time equivalent (FTE) number of students since not every student takes a full load. Tuition and fee rates are applied to these FTEs to estimate the revenues from each fee component – instructional fees (tuition), non-resident fees and general fees. In addition to Athens graduate students, medical students contribute to the general fee. Their tuition goes directly to the COM budget. For summer, revenue is simply projected from the previous summer revenues inflated by any approved fee increases.
Once the revenue projection is made, deductions similar to those for undergraduate activity are made for units that have special arrangements to capture their own portion of tuition and fees and use those revenues to pay for their own operations. These deductions then reduce the amount of revenue available to spend on the main budget.
For graduate activity, the discounting or waiving of tuition is much more extensive than at the undergraduate level. Once graduate fee waivers are subtracted, about $4M is collected from instructional and non-resident fees and after the general fee buy down for graduate assistants, about $3.4M is collected in general fees.
Waived
17,788,313
9,001,059
Collected
2,372,974
1,747,289
Total
3,934,216
Waived
521,000
Collected
3,413,216

10. Subsidy Earning Calculation
Subsidy is earned by producing credit hours
22 cost models – represents statewide average cost of producing an FTE (45 quarter hours) in different discipline groups)
AH = Arts & Humanities
BES = Business, Education & Social Science
STEM = Science, Technology, Engineering & Math
Shaded = Masters level
Additional factors:
Model
Funded FTEs (Weighted)
SSI Earnings
AH 1
927
$1,760,112
AH 2
2130
$5,440,810
AH 3
1359
$4,469,974
AH 4
399
$1,915,726
AH 5
284
$2,290,159
AH 6
189
$1,780,797
BES 1
335
$566,091
BES 2
1192
$2,311,140
BES 3
$2,294,804
BES 4
3653
$10,760,742
BES 5
637
$3,037,293
BES 6
164
$918,963
BES 7
364
$2,648,636
STEM 1
1082
$1,877,241
STEM 2
1528
$3,722,096
STEM 3
687
$3,226,772
STEM 4
2339
$14,650,922
STEM 5
510
$3,488,581
STEM 6 83
$823,797
STEM 7
351
$3,359,137
STEM 8
134
$1,881,435
STEM 9 27
$383,074
20,434
$73,608,304
Completions
69,449,077
At Risk Completions
4,159,226
Degrees
14,084,151
At Risk Degrees
1,976,170
Medical
10,459,124
Doctoral
10,743,410
SQFT Adjustment
(254,320)
Stop Loss
(214,580)
Earnings
110,402,258
After tuition, the next largest revenue component is state subsidy. The computation of subsidy earnings is extremely complex but here is a brief overview. The majority of subsidy is tied to credit hour production with every 45 credit hours produced being equivalent to an FTE student. The state recognizes that there are different costs for producing different FTEs depending on discipline and level (general education, undergraduate and graduate). To reflect these differences, 22 cost models (referred to as the New Taxonomy) each containing a different mix of disciplines and courses are created. These models are grouped by discipline area: Arts and Humanities (AH); Business, Education and Social Science (BES) and Science, Technology, Engineering and Mathematics (STEM) and numbered with 1 indicating introductory, general education courses in those disciplines and the highest level indicating masters-level courses. These cost models are shown at the left with our FTE production in each model and the resulting revenue. The fourth column shows a reduction in subsidy that occurred this year as part of a decrease in the state appropriation.
The table at the right provides a breakdown of all the subsidy components. Completions represents a weighting of our FTE production by the percentage of students that successfully complete the courses they take. This weighting is already applied to the FTE column in the table to the left. An additional allocation is given for the courses completed by at risk students. The definition of at risk is still in flux but generally refers to students with financial need. In addition to course completions, we also get credit for the number of students that complete degrees including a separate component for degrees completed by at risk students. The previous subsidy calculation included a Success Challenge component that rewarded timely degree completion but under this new system, it is simply degree completion with no restriction on the amount of time to complete the degree. These components combine to form the portion of subsidy that is “formula-driven” meaning that if we can increase our activity, we can obtain more funding. This possibility, however, is relative to the activity of all the other universities in the system since the overall appropriation is static essentially creating a pie of fixed size. If everyone else increases production, you must similarly increase your production to maintain the size of your slice of the pie. If you don’t increase as fast as everyone else, you slice shrinks and you lose revenue.
A separate allocation is given for doctoral FTE production but this component is capped meaning that if we increase our FTE, we will get no additional funding. This allocation is associated with an FTE target established in the 1990s and we must maintain our production up to at least 85% of that target.
COM has its own subsidy allocation embedded within the Athens Subsidy allocation.
Two deductions are made to our allocation: one to support a couple campuses with excess space and another to buffer swings in subsidy from one year to the next if a school has a large change in FTE production. These two deductions are listed here.
Similar to the arrangements where some units receive their own portion of tuition to fund their operations, there are several units that capture a portion of the Athens subsidy allocation. After deducting those, the amount of subsidy built into the Athens Campus budget is about $98.7M for FY11.
Projection Used in February to Create Budget
Governor's Budget
106,149,396
OUHCOM
(10,088,253)
Lifelong Learning
(1,200,326)
Pickerington/Proctorville
(404,829)
94,455,989
= Athens Budget

11. Subsidy – Athens Campus
Proportional Types of Subsidy
To provide a rough visual breakdown of the proportion of subsidy coming from the various components is shown in the graph to the left. Clearly the vast majority (68%) comes from course completions. Within this slice about $19.6M 9 (25%) comes from masters level activity while the remaining $59M (75%) comes from undergraduate activity. Degree completions and doctoral subsidy each account for about 10% of the total subsidy.
The graph at the left reveals the potential vulnerability of our subsidy revenue to federal stimulus funding. Across all the units of the budget, approximately $15M of our subsidy allocation comes from federal stimulus funds. The Athens budget portion is about $11M or 11% of our subsidy allocation. Since federal stimulus funds are consumed as they are spent, we must assume that this amount of subsidy has a possibility of disappearing next year unless the state would find other revenue sources to replace it. This potential exposure will be a large factor in our construction of the FY12 budget.
These numbers are prior to reductions
and redistributions so total is inflated

12. Athens Unrestricted E&G– All Sources
In addition to Revenue, there a some other funding sources that support the General Fund
Internal Transfers are payments made from one Athens unit to another for services rendered
Overheads are payments paid to the Athens budget by the other major budget units (UORC, COM and Auxiliaries). Similar to a tax on the revenues of these other units.
Transfers In are payments made by the other major budget units to particular units in the Athens budget for specific services.
As mentioned at the beginning of the discussion about revenue sources for the $390M Athens budget, about 89% comes from credit generated activities and research. The remaining 10% comes from transfers and overheads mostly from UORC, COM and Auxiliaries.
Internal transfers are revenues that go from one Athens unit to another. The most common one would be monthly telephone charges that appear as an expense in the budgets of most Athens campus departments and planning units. To balance these expenses in the budget, a matching revenue entry must appear in the unit receiving this revenue – is shows up as an internal transfer.
The remaining to sources, Overheads and Transfers In, will be described on the next two slides.
Values are in thousands

13. Overhead
University Outreach and Regional Campuses
College of Osteopathic Medicine
Housing
Auxiliary
Athens General Fund
Dining
Auxiliary
Campus
Recreation
Values are in thousands
Overhead is a payment made by one of the non-Athens Campus units to the Athens Budget. These are basically similar to a tax with the amount paid being a percentage of that unit’s revenue. The percentages are different for the various units. The concept of an overhead represents that idea that these units are served by the administrative structure in Athens and some of their services (human resources, payroll, accounting, budget, etc) are provided by Athens departments. To contribute to those costs, these other units make payments in proportion to their size as represented by the size of their revenues.
Parking
Auxiliary
The amount is a percentage of the unit’s revenue. An overhead study is currently underway to review and potentially reset these percentages
The concept is that these units benefit from activities in the Athens budget and therefore should provide some support to fund those activities.
Ohio Program of Intensive English

14. Transfers In
University Outreach and Regional Campuses
Athens General Fund
$580,000
Real Estate
Auxiliary
$650,000
Telephone
$650,000
Housing
Auxiliary
Office of Information Technology
Dining
Auxiliary
$8,630,000
$508,000
$380,000
Foundation
Facilities
ICA
$581,000
$84,000
Transfers In are similar to overhead but they are linked to specific services that Athens campus areas provide for these other units. Only units requiring these specific services are required to make the payment. If the service would no longer be needed, the Athens campus areas could conceivably reduce its costs and the transfer could stop. The payments are called Transfers In for the Athens budget because they come IN to the Athens budget.
The General Fee Buydown shift is the movement of part of the funds previously allocated to the general fee buydown for graduate assistants to fee waivers for graduate students resulting from the rebalancing of athletic scholarships from the general fee to the general fund
The 27th payroll for hourly employees is a result of having 27 pay periods this year rather than the usual 26 since a calendar year is weeks and this fraction of a week adds up to an additional two-week pay period every fourteen years. This transfer will come from general fund carry forward and go out into all the planning units to pay the additional salary to any hourly employees
This concludes the detail of the funding sources that support the Athens Campus budget. Next we will look in detail on how these funds are spent - uses
Finance
UORC - TO support OTO Vision Ohio
330
UORC - TO support Campus Community
250
Housing - TO support Telephone Auxiliary
650
Housing - TO support Resources in Facilities
8,630
Dining - TO support Resources in Facilities
380
University Endowment - TO Foundation Fin Ops
581
OIT - TO Support HDL Debt Service
508
ICA - TO Support Budget Unit Manager Duties 84
Real Estate Auxiliary - TO Central University
General Fee Buydown shift to Grad Waivers
679
27th Payroll for Classified - OTO
1,229
13,971
Transfers In are payments made from one unit to another to support specific services like those listed here

15. Uses: Athens Unrestricted E&G Budget
Values are in thousands
The first breakdown of the uses of funds in the unrestricted Athens budget is shown here. The majority (82%) of the budget appears in the General fund. General fee revenue is kept in a separate fund from which general fee activities ((student health, student activities, recreation, cultural programming and athletics) are funded. Finally, the designated fund is where units that collect their own portion of tuition and fees budget the expenses that those fees will support. These units must manage their expenses to make sure they can cover all their costs with the revenue that comes in during the year.
The General Fund and General Fee areas are the part of the normal budget process and is the portion reviewed by Budget Planning Council.
There are three majors subdivisions in the Athens Budget
General Fund – the main part of the budget supporting most units
General Fee – activities supported by the general fee (student health, activities, recreation, cultural programming and athletics)
Designated Income – tuition and fees that go directly to units as opposed to the central budget (OPIE, Education Abroad, Lifelong Learning, and off-campus graduate programs)

16. Breakdown of General Fund
The General Fund portion of the budget is the part that supports that activities of most of the Athens planning units and is the portion with which most people are familiar. Most Athens planning units receive part of the general fund budget. Other represents centrally budgeted items that are not assigned to a particular planning unit. This slice is further broken down in the pie to the right. A large part of this area are scholarships and fee waivers. Some of the less specific slices in these two charts will be further broken down on the next slides.
See subsequent pages
for additional detail
Values are in thousands

17. Enrollment Services
Enrollment services is made up of the operations involved with the enrollment of students – registrar, admissions and financial aid. These are the budgets supporting the staff and expenses in these areas

18. VP Finance Administration
The Finance and Administration unit makes up a large portion of the budget but this is a complex unit with many sub-functions. The largest portion (66%) of this budget is allocated to facilities including Custodial, Grounds and Maintenance operations and associated administration.
66% of this area is for Custodial and Maintenance

19. Funds to be Distributed
Funds to be Distributed represent reserves and other central pools of funds that typically get distributed to various planning units. These distributions often change from year to year which is why they start out centrally and then get allocated as needed. For example, the Opportunity Hire funds supports initial funding for minority and spousal hires where the central budget funds the salary for two years after which the planning unit absorbs the position. These funds then are freed up and allocated to support a different position in another planning unit in the future. The Instructional capacity reserves are funds support teaching positions that were preserved during the FY10 budget process. Other reserves such as the enrollment reserve are there in case of an unexpected decline in enrollment. The hope is that these funds will not be spent but they are reserved in the event of that emergency.
These are central pools held in reserve. Most of these funds end up going out to planning units on a short term basis to support specific activities or needs

20. Central Budgets Miscellaneous
Maintenance Reserve
325,000
Severance and Write-offs
228,462
Senate Bill 140 Students
130,000
Audit
242,300
Supplemental retirement
200,000
Banking services
190,000
Legal Counsel
175,000
University memberships
259,000
Apprentice Prog & Bckgrnd Checks
120,000
Monomoy Support
70,000
United appeals
3,000
The Central Budgets area includes items that support general activities not associated with any planning unit. Major portions include faculty staff fee waivers that pay for tuition when an employee takes courses, debt service which pays off the bonds for various building projects, the debt service payment for the SIS/Network project which is paid half by student fees and half by the university – this is the university share. Some items in this list will exist for a short time like severance costs and unemployment costs associated with layoffs.
The major components of Admin Central Pool:
Maintenance Reserve: $349K
Safety Maintenance Projects: 500K
Operations Continuity Planning: 77K
AFSCME President wages: $41K
Safety Now Repair Fund: $50K
Classroom/Public Space Renovations: $50K
Classified Senate: 23K
Administrative Senate: 28K
Rental Property: 11K
Central stop loss is a buffer in case we go over on employee fee waivers
These are areas that affect the university in general as opposed to a particular planning unit

21. Breakdown of General Fee
In addition to the General fund the other major part of the Athens budget that is part of the main budget process is the General Fee. These planning units are supported by general fee revenue and provide the activities shown here. In addition, the general fee supports the debt payment for Baker Center. Details for the Other slice are shown in the graph to the right.
In the Other slice, there are central components such as a general fee enrollment reserve similar to the one in the General Fund that covers tuition. The Central Reserve slice includes the ICA Bowl Game Reserve (84K) and an institutional base reserve. The Admin Central Reserve is the funding for Halloween overtime and the Finance Central Reserve includes the budget analyst overseeing ICA (84K) and the additional funding for student programming coming from the 1% general fee increase last year (267K).
In FY12, $6,456,000 in Athletic Scholarships were moved from the General Fee to the General Fund. This resulted in a reduction in the general fee from $531 to $419 for a full-time student and a matching increase in tuition. The total revenue for the general fee similarly reduced from $31M to $25M
General Fee Revenues fund activities related to student health, government, recreation, student activities, cultural programming, athletics and debt service related to these activities
Athletic Scholarships of $6,456,000 were shifted to General Fund in FY12
Values are in thousands

22. Breakdown of Designated Fund
The final fund in the Athens budget is the Designated Fund. These budgets are projected by the individual planning units are opposed to the central budget process in which Budget Planning Council is involved. As indicated earlier, these budgets must be monitored by the units to ensure that costs are covered by the revenues that come in during the year. This breakdown is shown primarily to provide an idea of the number and diversity of units that have operations supported by designated funds.
In the colleges these are funds from external graduate programs and course fees designated for specific costs. The designated fund under Research is the Indirect Cost Recovery revenue from grants. For non-academic units these are typically fees paid for specific services
Values are in thousands
The Designated Fund is revenue that is “earned by” or “belongs to” specific units outside normal tuition and subsidy. For academic units this is typically a share of tuition for special programs or off-campus graduate programs. Under Research this is the Indirect Cost Recovery revenue from grants. For others it is revenue from fees charged for specific services or to outside entities.

23. Expenditure Areas - Breakdown
FY11 Actual Expenditure
The high-level views of the budget do not include functional breakdowns of costs associated with personnel versus other types of expenses. These charts uses FY11 Actual expenditures as opposed to the FY12 budget. The way units construct budgets is not exactly the way that the unit will actually expend its funds. For example, many units do not budget complete non-personnel (3-9) expenses like supplies, travel, communication, etc. In addition, there are often savings in personnel costs from vacant positions or other savings on personnel. When the unit actually expends funds it will actually make non-personnel expenditures using savings in personnel costs. Therefore to determine the proportion of the budget that is allocated to these various categories, the FY11 actual expenditures are used.
The chart on the left shows that 70% of our budget goes to personnel related costs. At the right the “people” slice is further broken down into full-time faculty and staff, benefits and other staff like, graduate students, undergraduate student workers and professional fees.
The “People” slice includes all faculty and staff, student employees and associated benefits
The “Other People” slice includes Fellowships, Honoraria, Professional Fees and Student Workers

24. Expenditure Areas - Breakdown
FY11 Actual Expenditure
Continuing to further break down personnel costs, the faculty and staff slice is further divided into faculty, administrators and classified (hourly) staff. The Other slice is broken down into graduate assistants and the rest. The non-personnel slice is separated into scholarships and all other costs.
The graph on the right provides a breakdown of the benefits slice. Note that the health care budget is often shown to be around $45M. That total includes employees across the entire university in all four major budget areas. The amount shown in this graph is the portion for the Athens Campus.
“People” costs broken down by type of employee
“Everything Else” divided into Scholarships and the rest
“Other payroll” includes mostly professional fees, student workers, and honoraria/fellowships
Total medical spending is actually around $31M but employee premiums pay about $5M of that
This is only the Athens portion of health care. The total health care budget also includes COM and UORC employees

25. Key Budget Assumptions
Enrollment
Tuition and Fee Rates
Instructional Fee (Undergraduate and Graduate)
Non-Resident Fee (Undergraduate and Graduate)
General Fee
Housing and Dining Rates
State Subsidy
Compensation
Salary Increases
Faculty (Tenure Track and Non Tenure Track)
Administrators
Classified (Hourly)
Graduate Stipends
Health Care
Other Benefits
Utilities
Scholarships / Graduate Fee Waivers
Debt
Strategic Investments
During the process of constructing the Athens budget there are numerous assumptions that must be made about the key revenues and expenses. As seen in the discussion of tuition, revenues are based primarily on enrollments. Any increases to tuition and fees need to be determined to project revenue. Assumptions about changes in state subsidy will also be critical for the overall revenue projection.
On the expense side of the budget, inflationary pressures on costs will also need to be projected. These include assumptions related to salary and benefits, utility costs and scholarships. Any impact from debt service and the need to make strategic investments will also influence the projection of costs.
Each of these areas will be the subject of detailed discussions within Budget Planning Council throughout the year.
These will be the major topics for BPC over the coming year

26. Glossary
Fund - An income source established for the purpose of carrying on specific activities or objectives, in accordance with special regulations, restrictions or limitations.
Current Funds - Those funds that are earned and expended in the current fiscal year. There are also “non-current” funds such as carry-forward, internal loans, and plant funds. Plant funds support capital projects.
Restricted Funds - Funds whose use has been restricted by an external agency or individual. These funds are limited to support specific purposes and/or units. Examples include certain research awards and gifts.
Unrestricted Funds - Refers to funds that have no external limitations on their use. Examples of unrestricted funds include auxiliary funds and general funds.
Auxiliary Funds - Funds that exist to furnish goods or services to members of the campus community – examples include residence halls, food services, airport, parking, Intercollegiate Athletics.
General Funds - Unrestricted funds that support instruction, administrative, and physical plant expenditures. Includes General Program, General Fee, and Designated Funds.
General Program: Often referred to as the “General Fund,” are funds collected centrally, pooled, and allocated by the budget process. The primary revenue sources are instructional fees and unrestricted State support – the State Share of Instruction (SSI).
General Fee: The General Fee is restricted funding for non-instructional student services. The fee is charged to every student who is enrolled in at least one class, and is used to promote the student’s emotional and physical well-being, as well as their cultural and social development outside of formal instructional programs, most specifically through student services and student activities.
Designated Fund: Consist of revenue earned from activities conducted within a single department or unit. It is available for unrestricted use by the department.
Budget - The annual plan for the expenditure of estimated resources to support the University’s priorities and operations.
Operating Budget - Detailed projection of all estimated income and expenses based on forecasted revenue during a given period (usually one year) to support the operations of the university, including instruction, scholarships and financial aid, and administrative activities.
This Glossary includes commonly used terms that we will encounter often during the year.

27. Glossary
Fiscal Year - The University’s fiscal year begins on July 1 and ends on June 30 of the following calendar year.
Capital Budget - Budget/plan for capital assets and infrastructure such as facilities, renovation, information technology, and certain equipment. Appropriations from the state of Ohio are the primary source.
Revenue - Inflow of funds from sales, services, fees, gifts, or other external sources, including the state of Ohio and tuition.
Expenditure – The use of funds to pay for activities related to the operation of the university
Base Budget – Represents resources that are consistent and reasonably anticipated to continue from year to year. For example, salaries for permanent positions are expected to be base funded.
One-time Funds - Resources that cannot be anticipated on a long-term or consistent basis and therefore should not be allocated to support ongoing expenses.
Carry-forward - Funds that are not expended during the course of a fiscal year are “carried forward” typically in the form of segregated accounts within each unit’s budget.
Internal Transfers - Represents financial activity between units within the university for services rendered.
Tuition Caps - The Ohio General Assembly has authority to establish limits on increases to the combination of instructional and general fees. Typically applied to the tuitions assessed to undergraduate residents.
The State Share of Instruction (SSI) - Unrestricted funding that supports a portion of instructional and administrative costs incurred by campuses. Uses an outcome‐based funding model based the following outcomes: course and degree completion; retention of financially disadvantaged students; promotion of instruction in science, technology, engineering, mathematics, and medicine (STEM2).
Transfers In - Resources transferred INTO one fund or unit FROM another fund or unit within the university. For example, the Housing transfers funds INTO the facilities budget to support maintenance of dorms. The facilities budget would show this as a Transfer In
Transfers Out – Resources transferred FROM one fund or unit to another fund or unit within the university. For example, the same transfer described above would show up in the Housing budget as a Transfer Out
This Glossary includes commonly used terms that we will encounter often during the year.