Suppose you are the controller of Samson University. The university president is preparing for his annual fundraising campaign for 2010-2011. To set an appropriate target, he has asked you to prepare a budget for the academic year. You have collected the following data for the current year (2009 - 2010).

1. For 2010-2011, all faculty and staff will receive a 6 percent salary increase. Undergraduate enrolment is expected to decline by 2 percent, but graduate enrolment is expected to increase by 5 percent.

b.The 2009-2010 budget for operation and maintenance of facilities is $500,000, which includes $240,000 for salaries and wages. Experience so far this year indicates that the budget is accurate. Salaries and wages will increase by 6 percent and other operating costs by $12,000 in 2010-2011.

c.The 2009-2010 and 2010-2011 budgets for the remaining expenditures are

d. Tuition is $70 per credit-hour. In addition, the provincial government provides $780 per full-time-equivalent student. (A full-time equivalent is 30 undergraduate semester credit-hours of 24 graduate semester credit-hours.) Tuition scholarships are given to 30 full-time undergraduates and 50 full-time graduate students.

e. Revenues other than tuition and the government apportionment are

f. The classroom building needs remodelling during the 2010-2011 period. The projected cost is $550,000.

Required

1.Prepare a schedule for 2010-2011 that shows, by division, (a) expected enrolment, (b) total credit-hours, (c) full-time equivalent enrolment, and (d) number of faculty members needed.

2. Calculate the budget for faculty salaries for 2010-2011 by division.
3. Calculate the budget for tuition revenue and government apportionment for 2010-2011 by division.
4. Prepare a schedule for the president showing the amount that must be raised by the annual fundraising campaign.

Undergraduate Graduate $ 48,760 $ 48,760 Avg salary of faculty member Avg faculty teaching load in semester credit-hours per year (8 undergraduate or 6 graduate courses) Avg number of students per class Total enrolment (full-time and part-time students) Avg number of semester credit hours carried each year per student Full-time load, semester hours per year 24 30 3,600 18 20 1,800 25 30 20 24 2009-2010 2010-2011 $ 500,000 $525,000 General administrative Library Acquisitions Operations Health services Intramural athletics Intercollegiate athletics Insurance and retirement Interest 150,000 190,000 48,000 56,000 240,000 520,000 75,000 155,000 200,000 50,000 60,000 245,000 560,000 75,000 Endowment income Net income from auxiliary services Intercollegiate athletic receipts 2009-2010 2010-2011 200,000 210,000 325,000 335,000 290,000 300,000 Undergraduate Graduate $ 48,760 $ 48,760 Avg salary of faculty member Avg faculty teaching load in semester credit-hours per year (8 undergraduate or 6 graduate courses) Avg number of students per class Total enrolment (full-time and part-time students) Avg number of semester credit hours carried each year per student Full-time load, semester hours per year 24 30 3,600 18 20 1,800 25 30 20 24 2009-2010 2010-2011 $ 500,000 $525,000 General administrative Library Acquisitions Operations Health services Intramural athletics Intercollegiate athletics Insurance and retirement Interest 150,000 190,000 48,000 56,000 240,000 520,000 75,000 155,000 200,000 50,000 60,000 245,000 560,000 75,000 Endowment income Net income from auxiliary services Intercollegiate athletic receipts 2009-2010 2010-2011 200,000 210,000 325,000 335,000 290,000 300,000