3. Developing a Housing Operational Budget - 705
Kay Sisco, Budget Director, University of Tennessee- Knoxville
Stina Schoneck, Assoc. Dir. Of Finance, University of Florida

4. Types of Budgets Operating Capital Auxiliary Special Funds/ Restricted
Budget Type
Definition
Operating
Institution’s core budget representing all revenues & expenses (unrestricted, restricted, endowments, sponsored programs)
Capital
Budget established for the sole purpose of managing revenues and expenses of a specified capital project such as the construction or major renovation of a facility
Auxiliary
Self-supporting unit that is expected to stand on its own with respect to revenues and expenses. Receives little (if any) support from institutional budget. Income is usually from student fees.
Special Funds/
Restricted
Budget established for monitoring designated programs or services
Service Center
Support units that operate within an institution. Revenues are transfers from other departments as a payment for services rendered.
Source: Barr, M. J., & McClellan, G.S.  (2011) Budgets and financial management in higher education. San Francisco: Jossey-Bass.  

5. Purpose of Budgets Put Business Strategy into Operation
Allocate Resources
Provide Incentives
Provide a Framework for Control
Provide a means of communicating to internal and external constituents
Source: Maddox, D. C.,  (1999) Budgeting for not-for profit organizations. New York: Wiley.

6. BUILDING A BUDGET

7. Revenue
The income generated from the sale of goods or services before any expenses are deducted.
Types of Revenue
Residence Hall Income
Work with your Occupancy Management Team on their predictions for Fall/Spring/Summer
Occupancy Rates impact revenue.
Summer Conference Income
Work with Conference Team on their forecast for summer season and number of secured camps/conferences

8. Expenses
Money spent or cost incurred in effort to generate revenue, representing the cost of doing business.
Types: Operating and Non-Operating
Examples of Operating Expenses – Payroll, Utilities, Maintenance and Repairs, Depreciation, and Administrative Overhead
Examples of Non-Operating Expenses – Debt Service Payment, Transfers, and Loss on equipment and disposals
Work on with on-campus/contracted partners to determine any increases or decrease in rates.
Examples: physical plant, finance and accounting, cable, phone, etc.

9. Let’s Create a Budget

10. Assumptions Revenue Expenses
Proposed rental rate increase was denied. Rental Rates will remain flat.
Conference income anticipated to increase by 10%
Expenses
Debt Service Payment will be $2,000,000
University President announced a 5% living wage increase effective July 1, 2017
Part-time employees pay will remain the same
Facilities anticipates a decrease of $1,000,000 from FY16-17 budget
Physical Plant anticipates an 5% increase in Utilities

11. Can a Renovation Occur Next Year?
Director of Housing would like to renovate one building including adding new furniture.
Reserve Renovation Account Balance currently $1,000,000. On track to add additional $510,000 at then end of the fiscal year
Capital Renovations estimated to cost $2,500,000.
Furniture to cost $500,000.

12. Thank You for Attending