PART $2(20$ marks$)$ Comprehensive Budgeting $-$ Chapter $9$

Assume you are the Chief Financial Officer $($CFO$)$ at Laurentian University. The University is going through its annual budgeting process for the upcoming fiscal year, $2023-2024$ and you are coordinating this annual process. You have collected the following data for fiscal year $2022-2023$:

$\backslash$table$[[,\backslash$table$[[$Undergraduate$],[$Programs$]],\backslash$table$[[$Graduate$],[$Programs$]]],[$Average salary of faculty member,$$97,520,$$$97,520$

Revenues

i$.$ Tuition is $$\frac{155}{?}$ credit hour. In addition, the Ontario government provides $$980$ per full$-$time equivalent student. $($A full$-$time equivalent is $30$ undergraduate semester credit$-$hours or $24$ graduate semester credit$-$hours$).$

ii$.$ Full tuition scholarships are given to $30$ full$-$time undergraduates and $50$ full$-$time graduate students. $($hint: full scholarships represent no revenue to the school$)$

iii. Other revenues to be included in the $2023-2024$ budget include:

a$.$ Endowment income $$300,000$

b$.$ Auxiliary services $($net$)$

$335,000$

c$.$ Intercollegiate athletic receipts

$300,000$

Required:

a$)$ Prepare a schedule for $2023-2024$ that shows by division $($Undergraduate$,$ Graduate and Total$)$;

i$.$ Expected enrollment $($number of students$)$

ii$.$ Total credit hours

iii. Full$-$time$-$equivalent enrollment

iv$.$ Number of faculty members needed

b$)$ Based on your results to requirement a$)$ above calculate the budget for faculty salaries for $2023-2024.$

c$)$ Calculate the $2023-2024$ budget for tuition revenue for the undergraduate and graduate programs and in total.

d$)$ Calculate the $2023-2024$ budget for Ontario government apportionment based on $$780$ per full$-$time equivalent for the undergraduate and graduate programs and in total.

e$)$ Prepare a detailed schedule$*$ showing total budgeted revenue and total budgeted expenditures for $2023-2024.$

f$)$ Based on your answers to e$),$ is the university projecting a surplus or deficit for fiscal $2023-2024?$

${?}^{**}$ show line by line budget items