QUESTION 1

The finance officer role assists institutions in their funding priorities. The role is responsible for ensuring that expenditures do not exceed planned allocated budgets. In some instances, the officer may not approve their own transactions.

Scenario: You are the finance officer and manage the budget for State College with an enrollment of 8,000 undergraduate students. In the past 10 years, state and other kinds of support have declined. To address funding issues, the college increased tuition and fees, suspended salary increases, and only hired for necessary positions. Campus leaders remain optimistic about the future, but they do not expect improvement over the next several years. The following budgetary needs and strategies have come to your attention:

• Faculty and staff expect 3% salary increases.
• The administrative building HVAC system needs to be replaced ($180,000).
• Supporting hardware and software upgrades are needed ($100,000).
• Nursing equipment is needed for the new bachelor's degree program ($50,000).
• A retention program for first year students has been on hold the past 2 years ($35,000).

You are in the process of preparing an executive summary for the president to make recommendations for the upcoming budget cycle. You know the president is going to discuss increasing tuition and student fees to fund the different requests; however, you know that increasing tuition would have a negative impact on the school.

1. Prioritize the list of funding requests.
2. Make recommendations for areas that should receive funding.
3. Justify your recommendations for the funding.
4. Describe any new funding opportunities.