1. FY2012-13 Budget Overview October 2011

2. Agenda Financial Context for FY2013 Budget –FY2011 Year End Review –FY2012 and beyond Preparing the FY2013 Budget –Timeline and Key Dates –Budget Guidelines –Using Prior Data as a Guide –Key Items –Overview of Basic Forms Questions

3. FY2011 Year End Review FY2011 – yet another successful year –Success due to entire Colby campus realizing the challenges ahead (in $000s) Total Revenues$136,030 Total Expenses/Deductions$135,763 Net$ 267

4. The endowment grew $109 million due to return on investment and gifts. FY2011 Year End Review

5. Cash flows increased due to the Reaching the World Campaign

6. FY2011 Year End Review Debt remains very low - financial flexibility retained

7. Outlook FY2013 FY2012 – so far, so good Multi-year budgets are largely balanced BUT….. The economy remains weak The stock market is nervous

8. Dow – Decline since July Dow Jones Industrial Average – One Year Index Values

9. But no FY2008 repeat Endowment better positioned Working capital position strengthened Increased funding liquidity Financial analyses include a “disaster” scenario Biomass facility expected on line soon

10. Outlook FY2013 All eyes on: –Endowment return –Cash flows from gifts –Economic indicators, especially inflation

11. Strategic Initiatives Academic Initiatives –Science building –New faculty and support positions Museum Financial Aid / Diversity Green Colby Other staffing Fundraising

12. 0% non-compensation increase –Requests for deviations must be justified in writing Student worker expense (5211, 5212) –Actual expenses were 23% under budget campus-wide in FY11, continuing a multi-year trend This is NOT where we want to balance the budget. If you have it, use it. If you haven’t used it, but will, keep it. Cell phones (maybe in both 5220 & 6112) –For now, budget like last year, but federal law has changed. Separate instructions may be forthcoming. Budget FY2013

13. Departmental FY2012-13 Budgets –Review budget-to-actual spending patterns and strategic priorities for your area –Not all items need to be kept at the same level –Consult with your vice president or dean as appropriate during the preparation process –Budget request sent to PRIMARY Budget supervisor only; re-assignment to two additional supervisors possible FY2012-13 Budget

14. Timeline –September 30, 2011 – “Budget Call” notice sent –October 21, 2011 – Budgets due from areas –November 18, 2011 – Office of Financial Planning completes first draft of Preliminary Budget –December, 2011 – Conference call with Budget and Finance and Compensation Committees –January, 2012 – Budget and Finance Committee approves the Preliminary Budget –March, 2012 – Office of Financial Planning updates key assumptions and prepares final Proposed Budget –April, 2012 – Board approves Proposed Budget FY2012-13 Budget

15. Effect of 0% Increase Total BUD 2011$100,000 Total ACT 2011$ 75,000 Total BUD 2012$100,000 Total BUD 2013???? $100,000

16. FY2012-13 Budget ACT 2011BUD 2012BUD 2013 6100 Travel $30,000$50,000$40,000 6140 Postage $25,000$30,000$15,000 6340 Contract Svcs $20,000$20,000$45,000 Total $75,000$100,000$100,000

17. FY2012-13 Budget Cell phones –Removed from IRS “Listed Property” list –Separate instructions may be forthcoming. –Departments must still submit request form for new phones or changes in plans, even if money approved in budget Postage –Rates may increase to $0.46, post cards to $0.30

18. 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. Form A You have the option to review the budget information on screen or download to Excel. To simplify the task, salary, benefit, insurance and basic and toll telephone items have been omitted from this budget request form. Budget request must be manually input for each object code in whole dollars. Once Form A is completed, click “Subtotal Form A” and the top part of the screen will advise you of your total budget request for 2012-13. If there is an increase above 0.0% you will need to either adjust your budget request or provide justification in that section.

24. Forms B Form B: is a tool to help compute the budget request for Student Employment and should cover only academic year student employment. Financial aid students are encouraged to work during the school year and we should make every effort to provide maximum opportunity for them to do so. As you contemplate the composition of your student work force for the coming year, please keep in mind that student jobs will be classified into level grades as outlined below. Contact Bill Pottle (ext. 4130) should you have questions regarding student employment.

27. Next Steps Remember – 5pm Friday, October 21 Total non-comp budget increases for an area limited to 0% over last year’s budget 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

28. Contact Office of Financial Planning will be consulting with areas as necessary. Questions call Scott Jones x5522 or Nora Dore x5521. Complete budget information: http://www.colby.edu/administration_cs/financialplan ning/budgets/fy2013.cfm