2015-16 AnnualBudget Control Officers

MeetingOctober 27, 2015

ATC Auditorium

3:00 - 4:30 p.m.

Agenda1. Welcome – Steve/Lisa

2. 2014-15 Audit/Budget Results – Jim

3. 2015-16 Mid Year & 2016-17 Budget Timeline – Jim

4. Zero Based Budget Process – Lisa

5. Budget Review 2.0 – Jim

6. Employee Reimbursements/Travel – Cherry

7. Department Planning Update – Donna

2014-15 Audit/Budget Results Unmodified or “clean” audit opinion No management letter comments (6th year in a row!) Summary of General Fund:

* Includes transfers of $1.3 million to the Plant fund, and repayment of the $1.7 million VESP liability.

Revenues $107,581,340

Expenses & Transfers* ($107,581,340)

Add to Net Position $-0-

Net Position at 6/30/15 $11,121,515

Net Position/Revenues (BOT target = 10% - 15%) 10.34%

Revenue VariancesBudget Actual Variance

Tuition/Fees $53,781,353 $53,669,342 $(112,011)

Property Taxes $28,844,477 $28,955,402 $110,925

State Aid $20,895,956 $22,801,758 $1,905,802

Other $1,943,286 $2,154,838 $211,552

Total $105,465,072 $107,581,340 $2,116,268

BCO Controllable Expense VariancesBudget Actual Variance

Students $1,398,585 $1,091,267 $307,318

Contract Svcs $4,204,181 $3,943,223 $260,958

Supplies/Repair $5,246,674 $4,592,264 $654,410

Rentals $609,518 $468,023 $141,495

Other $1,308,887 $1,213,001 $95,886

Equipment $370,581 $229,506 $141,075

Total $13,138,426 $11,537,284 $1,601,142

Overall, 87.8% of controllable budgets were utilized.

BCO Controllable Expense VariancesFiscal Year Total Cost Centers # Overspent % Overspent

2014-15 125 19 15.2%

2013-14 127 18 14.4%

2012-13 120 15 12.5%

2011-12 122 19 15.6%

2010-11 118 19 16.1%

2009-10 115 30 26.1%

2008-09 102 45 44.1%

Continued Good Work by All of You!Thanks

2016-17 Budget Timeline – Key BCO dates: Dec 4, 2015: 2014-15 mid year budget requests due via on-

line submission**

Jan 21, 2016: Department planning, budgeting & space planning overview

Feb 26, 2016: IT project requests due via on-line submission

Mar 18, 2016: 2016-17 department plans, budget requests and space requests due via on-line submission

**Mid year criteria will be the same as in 2014-15. On-line forms are now available in PeopleSoft

Budget Calendar

2015-16 Mid Year and Beyond2015-16 balanced budget adopted by BOT in June:

Total Revenues$107,431,692Total Expenditures & Transfers

$107,175,702Change in Net Assets (maintains10%) $ 255,990

Significant Assumptions: 5% decline in enrollment, and implementation of differential tuition Increases of 2% for property taxes and 1.3% for state aid Staffing reductions recommended by the Ad Hoc budget committee and EBCO’s

of 24.5 FTE’s, plus $850,000 in projected VESP savings Reduction of $242,000 from various controllable line items Restoration (to $875,000) of the budgeted transfer to the Plant Fund for

deferred maintenance and the IT tactical plan.

2015-16 Mid Year and Beyond Total fall 2015 billing units are down approximately 6.7%. However non-

resident and out of state is ahead of budget, thus the total revenues are on target.

Winter 2016 enrollment will be a key indicator of what we’ll need to project for 2016-17.

Under-spending in 2014-15 allowed us to fully repay the VESP liability and maintain our budget stabilization fund.

However, with the implementation of the controllable reductions recommended by the Ad Hoc committee, we will not likely have the same level of unspent funds at the end of 2015-16.

We also have a need for future reinvestment in academic programs and capital resources.

Accordingly, we are embarking on a two-year effort to “re-set” controllable budgets and allow EBCO’s to re-allocate resources in the most efficient way possible………

Zero-Based Budget (ZBB) Process

What is the goal of ZBB?:

• GRCC's zero-based budgeting process is not a tool that is intended to reduce the College's overall operating budget or to increase it.  It is a tool intended to help us do the following: 1. Re-view our unit budgets - to look at our budgets again from a fresh

perspective2. Re-allocate funds among unit budgets - to potentially shift funds from areas

that don't need as much to others that need more3. Re-set our unit budgets - to ensure that our historical budgets, which have

not been reviewed for many years, are appropriate to current realities and, if not, to adjust them accordingly

• In short, we are engaging in ZBB as another means to help us assure that we have our financial resources where we need them to be.

Zero-Based Budget Process

What is ZBB at GRCC?• A one-time opportunity to build certain controllable budgets

from the “bottom up” (i.e. start from scratch).• Disregards past budgets, and focuses on what is needed

today.Who will be involved?• For 2016-17: All departments reporting to Lisa, Dave,

Kathy and Steve.• Academic & Student Affairs will do ZBB for 2017-18.

Zero-Based Budget Process

What will this look like?

Budget Review 2.0• A small team has been working on a complete revision of the

Budget Review process – Budget Review 2.0• Incorporating feedback received during the first 3 year cycle, the

new process:1. Shorter!!2. Focus on budget metrics3. Is more quantitative, less qualitative4. Considers trends (vs. only most recent year) in enrollment and

staffing5. Includes a revised benchmarking section that specifies “target”

institutions and considers the process, as well as the result, in scoring.

Budget Review 2.0 (cont’d)

• Timeline:• Revised process has been submitted to Exec.

Leadership• Documents to be finalized in winter 2016• Initial round of submissions and scoring to begin in

fall 2016

Employee Reimbursements:ALL REIMBURSEMENTS ARE NOW PAID ON

THE EMPLOYEE’S PAYCHECK!• The details of this reimbursement will appear on your

payroll remittance advice that can be accessed online. • Nontaxable employee reimbursements will have no effect

on payroll taxes when paid on the employee’s paycheck.• You will receive an email notification from ImageNow when

your reimbursement has been approved. Then, the reimbursement will be paid on the next available paycheck.

Employee Reimbursements (cont’d):• If you would like to view your reimbursements, you can

access them anytime on campus via WebNow at: https://www.grcc.edu/MyImageNowDocs/ or at https://www/grcc.edu/WebNow/ (you must login using your GRCC Network User Id and Password to view your reimbursements).

• Please do not send duplicates. Stamp your requests to show that they have been sent.

• Reimbursement forms and updated Reimbursement Procedures can be found at: http://www.grcc.edu/financeandadministration/employeereimbursementrequestformsandinstructions

Submission Schedule

Employee Reimbursements (cont’d):In a nutshell……….• Effective 1/1/2015 mileage is .575/mile.• Tipping is capped at 20% on allowable expenses.• Please submit itemized meal receipts as policy allows for

the maximum reimbursement of $25 without them.• Hotel receipts must also be itemized to verify allowable

expenses.• GRCC Employee Reimbursement Policy 11.1 can be found

at: http://www.grcc.edu/generalcounsel/policies 

Travel Arrangements:• Prior to making travel reservations, secure the approval of the Appropriate

Dean or BCO by completing an electronic Leave of Absence Form at:

http://www.grcc.edu/humanresources/forms/applicationforleaveofabsence• Once approval is received, airfare may be purchased by contacting Cherry at

x2177 or via email at cscaturr@grcc.edu.• This should be done at least 30 days in advance to receive the best pricing.

You may purchase 2nd class airfare on your own and submit for reimbursement following procedures in the Employee Reimbursement Policy.

• GRCC Travel Policy 11.4 can be found at: http://www.grcc.edu/generalcounsel/policies

 NOTE: If you are traveling in March, 2016, book your flights now! Spring Break is extremely busy and availability drives the price. Book early and avoid

the higher cost. 

Department Planning Update

Mark your calendars: Thursday, Jan 21, 2016 - Department Planning, Budgeting, Space Planning & Technology Overview, 1:00 to 2:30 p.m., 108 Sneden

Questions/Comments?

Thanks for attending!