OperatingBudgetManual2015

Operating Budget Manual – August 2010

C.4 – Revenue Guidelines Introduction

The University’s core operating budget is supported by two major sources, State tax support and University generated revenue (i.e., the revenue offset component). The offset component includes revenue generated by the University primarily from tuition, certain fees, clinics, interest earnings, assessments for M&O on residence halls, and fringe benefits. The allocation distribution in the Financial Plan is the sum of the State support provided based on the methodology described in the Financial Plan letter and the campus’ estimate of revenue generated. To support the level of allocation, each campus is expected to meet its revenue estimate. If a revenue shortfall occurs from the initial campus revenue sources defined below, it needs to be recovered through expenditure reductions or by applying other available campus revenue sources to balance the campus's Financial Plan. In the fall and spring the Budget Office requests that campuses update their revenue projections. These revenue updates are used for monitoring and analysis in reviewing revised revenue expectations for each campus, as well as to project overall revenue for the fiscal year. If a revenue shortfall occurs or is expected to occur, a letter explaining the situation and specifying other revenue sources and/or where cost reductions are to be made should be sent to the University Budget Director, with a copy forwarded to the Campus payments for fringe benefits relating to the special revenue funds (General IFR, SUTRA, DIFR, HIFR-IFR, and LISVH) are collected by the University and used, in lieu of direct state tax support, to support the campus core instructional budgets. Distributions are generally in direct proportion to each campus’s share of tax support, and are determined after the final campus allocations are made. Revenue Distribution The campus and pooled revenue together form the offset allocation segment of each campus’s financial plan. Each campus projects a campus revenue target to support its spending plan. Campus Revenue Target • Tuition The campus tuition revenue estimates are requested from the campuses and calculated by using funded AAFTE, as distributed by each campus. Funded AAFTE by level is approved by the System Administration Enrollment Planning Group; campuses distribute this AAFTE to planned headcount for resident/ non-resident, full/part-time and by level. The data is provided in the revenue projection system (BDG1), and campuses update the module for fall/spring enrollments, miscellaneous adjustments, and the estimated accounts receivable balances. A fall tuition projection update occurs in University Controller’s Office. Fringe Benefits/Pooled Offset

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