- Vollmers ersity of Maine Orono Wendy Coons University of Maine DUCTION BACKGROUND INFORMATION ON THE COLL AND THE BUDGET SYSTEM the senior accounting faculty member in the business and your dean, Dean Weller, is asking for help. She discouraged after a midyear budget meeting with = President of Finance. The college's Department of Fork has a large budget deficit, and because of this sinclined towards closing the department entirely g its bachelor's program. The department's deficit is Et in the university and has been so for several years. met with Josh Reynolds, Director of the Department Work, nine months ago, asking him to do his best to expenditures, but Reynolds said then that it wasn't - they were down to the bone. The dean has already ansfer funds from another department to cover the --budgeted salary of a faculty member. The college have to cover the final deficit, which means that the e departments of the college, operating within their will find any surplus proportionately depleted, Dean Ils you that, from a budgetary viewpoint, the college better off without Social Work, but that she does not od what is really going on. The deficit is obvious, but says the department is booming - there are plenty s. She asks you to analyze this situation. Visit the nt and talk to Director Reynolds. Find out what ollect data, and report back as soon as possible. You ss to the budgetary information she has and all other elevant information, including student credit hours of tuition. Make the case for or against the Vice- inclination. The university is facing declining enrollments becau: change in demographics. The number of students gre from the state's high schools is declining. Efforts to re and retain are underway, but between the enrollment and rising costs, there are tremendous incentives to fi places to cut. Tuition and.fees (see Table 1) and other student contribute about 30% to the revenue side of the univ but they do not appear on any college or department budget. Only revenues clearly generated by a particu department (e.g., lab fees) are included in that unit's budget. State appropriations, grant funding, endowm earnings, and other revenues make up the remainder revenue side of the university budget, but they also a distributed among the budgets of the colleges or othe By the same token.no overhead charges appear in co budgets either. Well before the beginning of the fiscal year, the V Finance sends cach dean the college's base budgett amount available for salaries and other costs. Typicall equals last year's budget (with minor modifications), deans send the department heads their budgets and meet with them to discuss their concerns. Finally, th meet with the VP of finance to answer standard such as whether departments and the college can con on budget, whether revenue opportunities exist; whe will be taken. Neither the deans nor the department ques IMA EDUCATIONAL CASE JOURNAL VOL 5, NO. 1, ART. 2, MARCH 2012 Www de vue. One ctara w Water INFORMATION ON THE DEPARTMENT OF SOCIAL WORK A Haran Tales tense bum tanT T whe ps| w The MIR Twist Soo SWASTA 14 Thu widt The hebb to H. than The w . defensa mwa CONVERSATION WITH THE DIRECTOR OF SOCIAL WORK w be esh HA for PE he 100 en we www ST Teti w the ST We PL Dhe w vip . When w the ne ht . Spring 2009 Residentilo-State Tuition and for u are per semester, Foes cannot be avoided.) Gratis for fu Fees of te T WA WIR Total 41000 1492 . 10701 71400 100 13 GOWE 2 1 8 5 . 1 1 GU 3 Undergraduate Tuition fees Tuition Fees 11 171.00 2 AND 3 21700 17100 4 29.09 111 00 1.188.00 11.09 1.434.00 10.00 2 1.573.00 490.00 8 1.112.00 49.00 9 2151.00 48000 10 2.390.00 290.00 11 2.629.00 450.00 12 2.868.00 965.00 13 3.107.00 965.00 14 3.346.00 8.00 15 3585.00 95.00 16 3,624.00 980.00 For each additional credit add $221.00 OOO 1000 2.142.00 2010 2.114.00 20170 LO 1400 2.100.00 2.402.00 261.00 2.880.00 2011, 3833,00 4072.00 4311.00 4.550.00 4.100 10 2.570.00 11 3822.00 12 47400 13 454100 14 4,238.00 15 535600 10 5712.00 For each additional cread.00 200 2010 21.00 000 48.00 500 12500 AN 425.00 95000 15000 9560 90.00 371.00 BED 40 500.00 523400 550.00 5.945.09 6.30 8,881.00 Budget of the School Up to date as of April 10, scal year ends Base Budget Current Budget YTD Actual Expenditures Encumbiances Budget Variances revenues fees Notes fra majoritas 18,000) 15.000 7.289 1289 other total Course fees Shared curriculum foes & Salary transfer from College 172260 180.760) (6,000) 193.3321 (100,621 15.522 16861 Course buyouts frants Additional adjuncts faculty salarios adjuncts classified wages prof wages total salaries wages benefits total compensation 559.994 47 646 61,820 58,560 728,020 309,512 1,037,532 613,994 47,648 61,820 58,560 782.020 333, 272 1.115.292 452,750 85.333 48862 45.461 638.406 268,131 906,537 105,250 24,667 13.381 13.626 157.524 66,328 224.252 49,994 (63,3541 1423) 1527 (14,3101 11.187) 115.497 conference and scradiation fees 4,219 1,025 531 4.219 1.025 531 memberships postage printing and copy leasing supplies and materials travel equipment telephone maintenance of equip total operating exps 800 2477 800 2477 6.700 887 3,341 1,452 7,364 29,743 6,137 4,880 2936 63,440 51 340 12.401) 138 (2810) 11.452 16,615) (27.505) (6,1371 11.672) 11.735) (50,376) Chairs and desks replaced Extra travel for grant writers 340 3,543 1,200 13,795 3,543 1,200 13,795 731 1.129,087 969,977 224.580 165.873) 1,051,327 net expenses Deficit is through April only An increase in it is anticipated net revenues & exp 869,356 224.983 (49,012) 1.045,327 1,045,327 Amounts in brackers are positive (additional money available) except in the budget variance line. There they are negative amounts. - Vollmers ersity of Maine Orono Wendy Coons University of Maine DUCTION BACKGROUND INFORMATION ON THE COLL AND THE BUDGET SYSTEM the senior accounting faculty member in the business and your dean, Dean Weller, is asking for help. She discouraged after a midyear budget meeting with = President of Finance. The college's Department of Fork has a large budget deficit, and because of this sinclined towards closing the department entirely g its bachelor's program. The department's deficit is Et in the university and has been so for several years. met with Josh Reynolds, Director of the Department Work, nine months ago, asking him to do his best to expenditures, but Reynolds said then that it wasn't - they were down to the bone. The dean has already ansfer funds from another department to cover the --budgeted salary of a faculty member. The college have to cover the final deficit, which means that the e departments of the college, operating within their will find any surplus proportionately depleted, Dean Ils you that, from a budgetary viewpoint, the college better off without Social Work, but that she does not od what is really going on. The deficit is obvious, but says the department is booming - there are plenty s. She asks you to analyze this situation. Visit the nt and talk to Director Reynolds. Find out what ollect data, and report back as soon as possible. You ss to the budgetary information she has and all other elevant information, including student credit hours of tuition. Make the case for or against the Vice- inclination. The university is facing declining enrollments becau: change in demographics. The number of students gre from the state's high schools is declining. Efforts to re and retain are underway, but between the enrollment and rising costs, there are tremendous incentives to fi places to cut. Tuition and.fees (see Table 1) and other student contribute about 30% to the revenue side of the univ but they do not appear on any college or department budget. Only revenues clearly generated by a particu department (e.g., lab fees) are included in that unit's budget. State appropriations, grant funding, endowm earnings, and other revenues make up the remainder revenue side of the university budget, but they also a distributed among the budgets of the colleges or othe By the same token.no overhead charges appear in co budgets either. Well before the beginning of the fiscal year, the V Finance sends cach dean the college's base budgett amount available for salaries and other costs. Typicall equals last year's budget (with minor modifications), deans send the department heads their budgets and meet with them to discuss their concerns. Finally, th meet with the VP of finance to answer standard such as whether departments and the college can con on budget, whether revenue opportunities exist; whe will be taken. Neither the deans nor the department ques IMA EDUCATIONAL CASE JOURNAL VOL 5, NO. 1, ART. 2, MARCH 2012 Www de vue. One ctara w Water INFORMATION ON THE DEPARTMENT OF SOCIAL WORK A Haran Tales tense bum tanT T whe ps| w The MIR Twist Soo SWASTA 14 Thu widt The hebb to H. than The w . defensa mwa CONVERSATION WITH THE DIRECTOR OF SOCIAL WORK w be esh HA for PE he 100 en we www ST Teti w the ST We PL Dhe w vip . When w the ne ht . Spring 2009 Residentilo-State Tuition and for u are per semester, Foes cannot be avoided.) Gratis for fu Fees of te T WA WIR Total 41000 1492 . 10701 71400 100 13 GOWE 2 1 8 5 . 1 1 GU 3 Undergraduate Tuition fees Tuition Fees 11 171.00 2 AND 3 21700 17100 4 29.09 111 00 1.188.00 11.09 1.434.00 10.00 2 1.573.00 490.00 8 1.112.00 49.00 9 2151.00 48000 10 2.390.00 290.00 11 2.629.00 450.00 12 2.868.00 965.00 13 3.107.00 965.00 14 3.346.00 8.00 15 3585.00 95.00 16 3,624.00 980.00 For each additional credit add $221.00 OOO 1000 2.142.00 2010 2.114.00 20170 LO 1400 2.100.00 2.402.00 261.00 2.880.00 2011, 3833,00 4072.00 4311.00 4.550.00 4.100 10 2.570.00 11 3822.00 12 47400 13 454100 14 4,238.00 15 535600 10 5712.00 For each additional cread.00 200 2010 21.00 000 48.00 500 12500 AN 425.00 95000 15000 9560 90.00 371.00 BED 40 500.00 523400 550.00 5.945.09 6.30 8,881.00 Budget of the School Up to date as of April 10, scal year ends Base Budget Current Budget YTD Actual Expenditures Encumbiances Budget Variances revenues fees Notes fra majoritas 18,000) 15.000 7.289 1289 other total Course fees Shared curriculum foes & Salary transfer from College 172260 180.760) (6,000) 193.3321 (100,621 15.522 16861 Course buyouts frants Additional adjuncts faculty salarios adjuncts classified wages prof wages total salaries wages benefits total compensation 559.994 47 646 61,820 58,560 728,020 309,512 1,037,532 613,994 47,648 61,820 58,560 782.020 333, 272 1.115.292 452,750 85.333 48862 45.461 638.406 268,131 906,537 105,250 24,667 13.381 13.626 157.524 66,328 224.252 49,994 (63,3541 1423) 1527 (14,3101 11.187) 115.497 conference and scradiation fees 4,219 1,025 531 4.219 1.025 531 memberships postage printing and copy leasing supplies and materials travel equipment telephone maintenance of equip total operating exps 800 2477 800 2477 6.700 887 3,341 1,452 7,364 29,743 6,137 4,880 2936 63,440 51 340 12.401) 138 (2810) 11.452 16,615) (27.505) (6,1371 11.672) 11.735) (50,376) Chairs and desks replaced Extra travel for grant writers 340 3,543 1,200 13,795 3,543 1,200 13,795 731 1.129,087 969,977 224.580 165.873) 1,051,327 net expenses Deficit is through April only An increase in it is anticipated net revenues & exp 869,356 224.983 (49,012) 1.045,327 1,045,327 Amounts in brackers are positive (additional money available) except in the budget variance line. There they are negative amounts
