1. FY2013-14 Budget Overview October 4, 2012 CONFIDENTIAL – INTERNAL USE ONLY

2. 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

3. 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

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

5. Gifts Gift cash flows stable in FY2012

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

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

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

9. Outlook: 2013 and 2014

10. 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.

11. 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.

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

13. Budget FY2013-14

14. 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

15. 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

16. 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

17. BUDGET FY2014 How to Calculate FY2013-14 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

18. BUDGET FY2014 ACT 2012BUD 2013BUD 2014 6100 Travel $30,000 $50,000 $40,000 6140 Postage $25,000 $30,000 $15,000 6340 Contract Svcs $20,000 $20,000 $46,000 Total $75,000 $100,000 $101,000

19. 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

20. Forms

21. BUDGET FY2014 - 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

22. BUDGET FY2014 - FORMS

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

24. BUDGET FY2014 - FORMS

25. BUDGET FY2014 – FORM A

27. BUDGET FY2014 – FORM B

28. BUDGET FY2014 – FORM C

29. 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 FY2014 - Reminders

30. 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 FY2014 - Reminders

31. Office of Financial Planning will be consulting with areas as necessary Questions? call Scott Jones x5522 or Nora Dore x5521 Web Site: https://www.colby.edu/administration_cs/financialplanning/budgets/fy2014.cfm