Preparing Designated/Auxiliary FY11 Operating Plans

 Understand the general function and unique characteristics of designated/auxiliary funds  Ascertain why operating plans are important and the role they play in budget preparation.  Identify methods to collect relative information for an operating plan  Identify acceptable practices of managing fund balance  Write a thorough/functional plan in the established format  Communicate the operating plan to various audiences

 Continued need for a consistent planning process  New training approach  Introduction of process for new employees  Enhanced operating plans  New requirement

 Proactive management tool  Communication  Document assumptions, issues and concerns  Source document for budgets  President and Vice President approval of plan provides direction for the budget

 Designated for purposes specified by the Board of Regents or the campus  Account for entrepreneurial and support activities  Separately classified to accumulate direct costs and revenues – self-funded

 Student Course Fees  Sales & Service Accounts  Self-support Activities  Lab Fees  SPABA

Primarily student-related Fee-for-service activities Self-support activities Entrepreneurial activities and Investment income

 Residence Halls  Food Services  Printing & Graphics Services  Golf Course  Campus Recreation Center Examples of Auxiliary Funds

 Planning  Budget Preparation  Assessment  Budget Modification

Plan BudgetAssess

 What we’re looking for  A written document to describe a unit’s operating conditions and planning assumptions  Uses factual references whenever possible  Makes assumptions and logic explicit  Informs Directors and Deans of current issues and trends that may impact the unit  Establishes and requests concurrence on goals, priorities, and strategies  A plan of one-year temporal scope, at a level to inform budget decisions

 What we’re NOT looking for  A strategic plan  A written form of a detailed budget by index code  A vague narrative that fails to inform decisions  A ”make-work” document

 Tools  Operating Plan from previous fiscal year  Quarterly Performance Report, Data Warehouse and Banner reports  Communication  Revenue and Expense Models  Other relevant planning documents

To create a Pivot Table in Excel: Highlight the Data Choose Insert Pivot Table

Pivot tables are super!

 Revenue and Expense Modeling  SPABA Allocation from prior year  Fee or other income data from recent years  Payroll Projections – employee roster, payplan assumptions  Capital Projects and Purchases  Debt Burden Schedule  Historical Data

Estimating SPABA revenue to complete the operating plan and budget.

SPABA Revenue

 Other Planning Tools  Contracts  Professional Journals and Organizations  Current Events  OPBA Assumptions Package

 Forms  FY11 Operating Plan Template

Background: Describe the operation Describe its history Explain the nature of its business activities

Revenue Assumptions & Projections:  Specify revenue sources and amounts  Address the timing of revenue  Explain anticipated changes

Expenditure Assumptions and Projections:  Outline expenses  Explain anticipated changes

Fund Balance and Capital Plan:  address strategy regarding fund balance  estimate beginning fund balance  project revenue (from previous exercise)  project expense (from previous exercise)  project ending fund balance

Management Issues, Trends, Significant Events Discuss significant issues, trends and events expected to impact the operating unit.

Specify Goals: Long range, broad and serve to set direction or to provide a relative target or accomplishment or growth Initiatives: New efforts, intended to begin implementation within this planning period. Objectives: more specific than goals, they are achievable, measurable and verifiable

 Preliminary Plan Review - February 16, 2010  All Plans Due – No later than March 12, 2010 Submit your plan to OPBA

 Dean or Director reviews and signs the plan  Signed plan is forwarded to OPBA  OPBA screens the plan for methodology, forwards plan to appropriate Vice President and coordinates conferences if necessary  With Vice President’s approval the plan is then forwarded to the President.  If plan is not approved, it is returned to the department for revision.

 Position Budget Training - Wednesday, January 27 th or - Thursday, January 28 th  Build Designated/Auxiliary Budgets - Thursday, February 11 th or - Thursday, March 11 th  General Funds Budget Training - Wednesday, April 21 st or - Thursday, April 22 nd

Michelle