1. © 2015 Boise State University1 Boise State University Bronco Budget 2.0 Committee 4.26.16 Ken Kline AVP, Budget and Planning

2. © 2015 Boise State University2 Agenda Finalize revenue discussion Review overall budget model

3. © 2015 Boise State University3 Indirect Cost Recovery (F&A) Costs the university incurs to support externally-funded projects, programs, or activities. Unlike direct costs, these cannot be easily identified with and charged directly to a project, program, or activity with any reasonable degree of accuracy or without an inordinate amount of accounting. Examples include operation and maintenance of buildings and grounds, utilization of equipment and libraries, and administration of projects or programs at the institutional, college and department levels. Many institutions utilize all or a portion of F&A to provide a research incentive and fund these costs through other sources (e.g. central funds) EAB: “While universities have different policies governing how indirect cost recovery funds are distributed, no single policy appears to correlate with higher research productivity.” Read Optimizing the Distribution of F&A Recovery Funds available from one of the following two links: https://docs.google.com/a/boisestate.edu/viewer?a=v&pid=sites&srcid=Ym9pc2VzdGF0 ZS5lZHV8YnJvbmNvLWJ1ZGdldC0yLTB8Z3g6ZjNlOGI1NTIxMzU1Y2Q4 https://docs.google.com/a/boisestate.edu/viewer?a=v&pid=sites&srcid=Ym9pc2VzdGF0 ZS5lZHV8YnJvbmNvLWJ1ZGdldC0yLTB8Z3g6ZjNlOGI1NTIxMzU1Y2Q4 https://www.eab.com/research-and-insights/academic-affairs- forum/custom/2008/04/optimizing-the-distribution-of-f-and-a-recovery-funds https://www.eab.com/research-and-insights/academic-affairs- forum/custom/2008/04/optimizing-the-distribution-of-f-and-a-recovery-funds

4. © 2015 Boise State University4 College/School Central Allocations 1.Funding for differences in cost of instruction 2.Strategic investments – State line items – University priorities – Initiative start-up funds 3.Recommend central allocations from the appropriated budget only

5. © 2015 Boise State University5 College / School Revenue Sources Part of Budget Model: 1.Tuition and Fee Allocation 2.Other Instructional Fees (e.g. course fees, professional fees) 3.Indirect Cost Recovery (F&A) 4.Sales and Service (e.g. conferences, misc.) 5.Central Allocation 6.“Chargebacks” Not Part of Budget Model: 1.Grants and Contracts 2.Expenses Reimbursed from Foundation Gifts

6. © 2015 Boise State University6 Primary Central Sources of Funds 1.General State Appropriation 2.College / School Contribution – Typically a % of revenues 3.Indirect Cost Recovery (F&A) 4.Self-support Overhead Assessment 5.Future: Administrative Service Charge?

7. © 2015 Boise State University7 College / School Contribution % of RevenueInclude / Exclude Undergraduate Resident / Non-Resident TuitionInclude International Student TuitionInclude Graduate TuitionInclude Online Program FeeInclude Summer FeeInclude

8. © 2015 Boise State University8 Budget Model Overview

9. © 2015 Boise State University9 THANK YOU Ken Kline, AVP, Budget and Planning Email: kennethkline@boisestate.edu Next meeting: May 16, 3:30 – 5:00, MBEB 4201