Budget Book 2005 - Office of University Budget

GENERAL FUND BUDGET

FY 2005

WAYNE STATE UNIVERSITY FY 2005 PROPOSED GENERAL FUND BUDGET

Table of Contents I. Introduction Introduction .............................................................................................. 1 Graph – General Fund Revenue Distribution ............................................ 4 Graph – General Fund Expenditure Distribution ....................................... 5 Graph – Comparative Headcount Enrollment ........................................... 6 Graph – Comparative Credit Hour Enrollment .......................................... 7 Graph – Total Research and Development Expenditures ........................... 8 Graph – Indirect Cost Recovery ................................................................ 9 Table – Total Funded Full Time Equivalent Employees ............................. 11 II. Summary Budget General Fund Budget Revenues and Expenditures Summary ..................... 13 III. Schools and Colleges Schools and Colleges – General Fund Budget Expenditures ...................... 15 Business Administration ............................................................................ 19 Education .................................................................................................. 21 Engineering ............................................................................................... 23 Fine, Performing and Communication Arts ................................................ 25 Graduate ................................................................................................... 27 Law ........................................................................................................... 29 Legal Studies ............................................................................................. 31 Liberal Arts and Sciences .......................................................................... 33 Library and Information Science ................................................................ 37 Medicine .................................................................................................. 39 Nursing ..................................................................................................... 41 Pharmacy and Health Sciences ................................................................. 43 Social Work .............................................................................................. 45 Urban, Labor and Metropolitan Affairs ...................................................... 47 Undergraduate General Education ............................................................ 49 IV. Academic Support – Summary Division Budgets Academic Support – General Fund Budget Expenditures .......................... 51 Office of the Provost ................................................................................. 53 Student Development and Campus Life .................................................... 59 Libraries .................................................................................................... 65 Research ................................................................................................... 69

WAYNE STATE UNIVERSITY FY 2005 PROPOSED GENERAL FUND BUDGET

Table of Contents (continued) V. Operating Divisions – Summary Division Budgets Operating Divisions – General Fund Budget Expenditures ........................ 73 Executive Office of the President ............................................................... 75 Administrative Operations ........................................................................ 79 Development and Alumni Affairs .............................................................. 83 Finance and Facilities Management .......................................................... 87 VI. Central Accounts Central Accounts – General Fund Budget Expenditures ............................ 91 Central Accounts ....................................................................................... 93 VII. Policies and Procedures Budget Policies and Practices .................................................................... 99 Budget Management Procedures ............................................................... 105

INTRODUCTION

FY 2005 Proposed General Fund Budget The FY 2005 Proposed General Fund Budget reflects total revenues of $442.4 million. This represents an increase of $23.4 million (5.6 percent) in revenues over the FY 2004 budget. The proposed budget reflects a $4.3 million reduction in state appropriations, a 2.4 percent proposed increase in undergraduate tuition rates, an 8.5 percent increase in graduate and graduate/professional tuition rates, an increase of 2.4 percent in tuition-related fees, and a projected increase of 2,479 Fiscal Year Equated Students (FYES) over FY 2004 budgeted levels. Approximately 48.1 percent of budgeted revenue is attributable to state appropriations, and 41.0 percent to tuition and fees. A composition of total budgeted revenues is shown on page 4. The reduction in state appropriations, along with funding priorities, creates a funding gap of $24.7 million for the University that will be met with a combination of budget reductions, enrollment growth and increases in tuition and fee rates. Program Funding Budgeted expenditures include approximately $11.1 million in obligatory, non-discretionary commitments – e.g. employee compensation, fringe benefits, and building operation costs. Program funding of $7.3 million is provided to support high priority program needs. These high priority needs include investment in academic and research programs and support for the University’s $500 million capital campaign. Non-recurring allocations totaling $5.7 million are provided to support deferred maintenance and key research programs. Of the total $442.4 million budgeted expenditures, 58.0 percent either resides in school/college budgets or will be transferred to those budgets during the fiscal year A composition of the total expenditures is shown on page 5. Budget Priorities and Assumptions The proposed budget reflects organizational priorities derived from the University’s strategic plan. That plan consists of five broad areas of strategic focus – academic excellence, research pre-eminence, quality of campus life, community engagement and educational opportunities. The budget reflects the following assumptions: 1. The legislature has proposed but not yet passed a reduction in state funding for Wayne

State University of 5.0 percent -- which equates to $10.9 million for the General Fund. This proposed reduction is offset by an anticipated 3.0 percent permanent restoration in FY 2004 – which amounts to $6.6 million. This restoration is based on a tuition pledge

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INTRODUCTION

to hold tuition rates for the remainder of FY 2004 at levels approved for the Fall 2003 term, and to limit undergraduate tuition increases for FY 2004-2005 to no more than the Detroit Consumer Price Index increase. Under the pledge, the state agrees to take no further reductions in state appropriations for FY 2005. It is assumed that this legislation will be upheld and that the $6.6 million restoration will be received by September 30, 2004 in accordance with the state’s commitment.

2. The budget reflects a proposed increase in tuition rates of 2.4 percent for

undergraduate students and 8.5 percent for graduate and professional programs. The per- semester registration fee and the per-credit hour omnibus fee will increase by 2.4 percent.

3. Targeted enrollment is set at 25,161 Fiscal Year Equated Students (FYES) – an increase

of 10.5 percent over FY 2004 budgeted enrollment and 5.0 percent over projected actual enrollment for the year – with no significant change in the nature or composition of enrollment. The budget assumes a constant rate of growth in enrollment in Fall 2006 with that projected for FY 2005

4. It is assumed that the local economy will not significantly worsen during the upcoming

fiscal year. However, it is not likely that significant recovery will occur either. Further, it is expected that amounts available for investment by the University will not change significantly and that those investments will continue to be made in accordance with current investment guidelines. Projections for investment income reflect recent market performance.

5. It is assumed that there will be no significant change in the workforce or the general

nature of the University’s contractual commitments to that workforce during the year. Five collective bargaining groups have labor contracts that are currently under negotiation. Those groups account for approximately 9.6 percent of the University’s total projected General Fund salary budget for FY 2005. Those factors have been considered in development of estimates for compensation increases and fringe benefits in the FY 2005 budget.

6. Except for new buildings or demolitions that have been identified in the budget, it is

assumed that utility consumption and patterns of usage will remain constant. Anticipated changes in rates have been factored into budget projections. Utilities projections include costs attributable to properties recently purchased from the Detroit Public Schools. The University is currently in negotiation over the rate being charged for steam – which represents approximately one-third of total utilities expenditures. The outcome of this negotiation is expected in September 2005 and additional expense for FY 2004 may result in changes to the estimates provided for utilities cost for FY 2005.

Useful data relating to the proposed budget are presented on the graphs and tables that follow. These include: a) composition of budget revenues and expenditures, b) enrollment, c) total research funding and related Indirect Cost Return, and d) workforce count.

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Source: Office of University Budget

General Fund Revenue Distribution

Other Revenues2.5%Indirect Cost Recovery

8.5%

Net Tuition and Fees 40.9%

State Appropriations48.1%

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General Fund Expenditure Distribution

Divisions17.8%

Schools and Colleges58.0%

Financial Aid5.7%Overhead

9.5%Academic Support

9.0%

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Source: Office of the Registrar, Official Enrollment Reports

WAYNE STATE UNIVERSITYTen Year Comparative Headcount Enrollment Fall Terms 1995-2004

31,025

30,408

31,04031,167

33,091

32,149

31,18531,203

30,729

34,746

29,000

30,000

31,000

32,000

33,000

34,000

35,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 Projected2004

Total Headcount

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Source: Office of the Registrar, Official Enrollment Reports

WAYNE STATE UNIVERSITYComparative Fall and Winter Credit Hour Enrollment 1995 - 2005

577,556

568,266562,388

566,711

575,402 572,457

562,961

582,014587,284

618,256

649,169

500,000

520,000

540,000

560,000

580,000

600,000

620,000

640,000

660,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Proj.2005

Fall and Winter Credit Hour Enrollment

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Source: Report on University Research to the Board of Governors,February 2004.

WAYNE STATE UNIVERSITY Total Research and Development Expenditures

Comparison Years 1993 through 2003

$213,717

$199,007

$175,984

$156,814$146,832

$138,425

$124,383

$112,151$106,140

$94,632$85,627

60,000

75,000

90,000

105,000

120,000

135,000

150,000

165,000

180,000

195,000

210,000

225,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

In T

hous

ands

of D

olla

rs

Total Research and Development

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WAYNE STATE UNIVERSITY Indirect Cost Recovery

FY 1995 - FY 2004

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004Proj

In T

hous

ands

of D

olla

rs

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Schools/Colleges Total FTE

School of Business Administration 98.1 College of Education 163.4 College of Engineering 154.9 College of Fine, Performing and Communication Arts 152.8 Graduate School 35.7 Law School 64.0 Center for Legal Studies 2.8 College of Liberal Arts and Sciences 748.8 Library and Information Science Program 16.3 School of Medicine 545.9 College of Nursing 90.0 Eugene Applebaum College of Pharmacy and Health Sciences 118.5 School of Social Work 60.8 College of Urban, Labor and Metropolitan Affairs 134.2 Undergraduate General Education 3.8

Total Schools/Colleges 2,390.0

Academic Support

Office of the Provost 373.9 Student Development and Campus Life 215.3 Libraries 156.8 Research 120.4

Total Academic Support 866.4

Divisions

Executive Office of the President 107.3 Development and Alumni Affairs 85.0 Finance and Facilities Management 501.2

Total Divisions 693.5

Total Schools/Colleges/Divisions 3,949.9

WAYNE STATE UNIVERSITYTotal Funded Full Time Equivalent (FTE) Employees

Fiscal Year 2005

Note: FTE staffing numbers are reported by the respective School/College or Division

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FY 2004 Approved

Budget

FY 2005 Proposed Budget

Revenues

State Appropriations 217,065.7 212,724.4 (4,341.3) -2.0%Net Tuition and Fee Revenues 156,890.5 180,840.3 23,949.8 15.3%Indirect Cost Recovery 34,000.0 37,626.0 3,626.0 10.7%Investment Income 1,600.0 1,500.0 (100.0) -6.3%Other Revenues 4,063.3 3,976.5 (86.8) -2.1%Transfer from Rainy Day Fund 500.0 - (500.0) -100.0%Prior Year Carryforward Funds 4,800.0 5,700.0 900.0 18.8%

Total Revenues 418,919.5 442,367.2 23,447.7 5.6%

Expenditures

Schools and Colleges 152,767.2 164,405.7 11,638.5 7.6%Academic Support 75,439.7 87,455.6 12,015.9 15.9%Divisions 45,530.7 47,221.7 1,691.0 3.7%Student Financial Aid 24,104.5 20,767.5 (3,337.0) -13.8%Central Accounts 117,036.6 118,755.3 1,718.7 1.5%External Departmental Revenues 4,040.8 3,761.4 (279.4) -6.9%

Total Expenditures 418,919.5 442,367.2 23,447.7 5.6%

Net Budget Surplus (Shortfall) - - - -

Variance $ %

Fiscal Year 2005(In Thousands of Dollars)

General Fund BudgetSUMMARY REVENUES AND EXPENDITURES

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FY 2004 Approved

Budget


Schools and Colleges

Business Administration 7,684.3 8,116.0 431.7 5.6%Education 9,487.7 9,720.8 233.1 2.5%Engineering 11,742.7 12,310.3 567.6 4.8%Fine, Performing and Communication Arts 8,292.9 8,439.7 146.8 1.8%Graduate School 979.9 1,574.1 594.2 60.6%

Law 5,635.4 7,556.1 1,920.7 34.1%Center for Legal Studies 127.3 131.4 4.1 3.2%Liberal Arts and Sciences 41,824.6 43,434.2 1,609.6 3.8%Library and Information Science 1,035.7 1,084.4 48.7 4.7%Medicine 40,144.3 45,105.3 4,961.0 12.4%

Nursing 6,132.5 6,362.0 229.5 3.7%Pharmacy and Health Professions 8,382.3 9,013.0 630.7 7.5%Social Work 3,499.3 3,563.9 64.6 1.8%Urban, Labor and Metropolitan Affairs 7,667.3 7,862.0 194.7 2.5%Undergraduate General Education 131.0 132.5 1.5 1.1%

Total Schools and Colleges 152,767.2 164,405.7 11,638.5 7.6%

Schools and CollegesSUMMARY BUDGET

Variance $ %

Fiscal Year 2005General Fund Budget Expenditures

(In Thousands of Dollars)

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Schools and Colleges SUMMARY BUDGET

MISSION STATEMENT

ayne State University fulfills a unique niche in providing access to a world-class education at a great value. Wayne State’s thirteen schools and colleges offer more than 350 major subject areas to its 33,091 graduate and undergraduate students. Faculty in

these programs generate more than $170.5 million in research funding and earned Wayne its designation as a Carnegie Doctoral-Extensive University.

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Schools and Colleges SCHOOL OF BUSINESS ADMINISTRATION

Fiscal Year 2005 General Fund Budget


Variance FY 2004 Approved

Budget

FY 2005 Proposed Budget $ %

Academic Salaries 5,685.1 5,839.1 154.0 2.7%

Non-Academic Salaries 1,315.1 1,341.3 26.2 1.9%

Fringe Benefits 0.0 0.0 0.0 0.0%

TOTAL SALARIES 7,000.2 7,180.4 180.2 2.5%

General Expenses 704.4 955.9 251.5 35.7%

Non-Recurring 0.0 0.0 0.0 0.0%

TOTAL EXPENDITURES 7,704.6 8,136.3 431.7 5.6%

Revenue (20.3) (20.3) 0.0 0.0%

Internal Transfers 0.0 0.0 0.0 0.0%

NET ALLOCATION (REVENUE) 7,684.3 8,116.0 431.7 5.6%

Budget Notes 1. EXPLANATION OF CHANGES

Technical Adjustments During FY 2004, the budget was increased by $180,200 for compensation increases. Program Changes For FY 2005, the budget will be increased by $251,500, which reflects the School’s 75 percent share of projected revenue to be generated from the differential tuition rate assessed for graduate business courses.

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Schools and Colleges SCHOOL OF BUSINESS ADMINISTRATION

2. OTHER MATTERS

Beginning in FY 2004, a differential tuition rate was set for graduate business courses. This differential, which for FY 2005 is set at a proposed rate of $54.25 per credit hour, is expected to generate total revenues of $869,900. Of that amount, 75 percent is reinvested in the program. That aggregate reinvestment totals $652,500 for FY 2005, which includes the $251,500 increase budgeted for FY 2005.

3. FTE DISTRIBUTION

The total salary budget for the School is $7.2 million, which represents 96.2 percent of the total School of Business Administration budget, excluding the $652,500 reinvestment of differential tuition. Total funded FTE staffing, as reported by the School, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

63.5

8.5

3.1

3.0

78.1

20.0

98.1

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Schools and Colleges COLLEGE OF EDUCATION




Budget





TOTAL SALARIES 8,860.3 9,093.4 233.1 2.6%




Revenue (13.1) (13.1) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was increased by compensation adjustments totaling $233,100.

2. FTE DISTRIBUTION

The total salary budget for the College is $9.1 million, which represents 93.5 percent of the total College of Education budget. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

90.8

2.5

25.1

7.0

125.4

38.0

163.4

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Schools and Colleges COLLEGE OF ENGINEERING




Budget





TOTAL SALARIES 10,494.4 10,957.2 462.8 4.4%

General Expenses 1,272.6 1,377.4 104.8 8.2%



Revenue (24.3) (24.3) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was increased by $350,000. Increases to the budget consist primarily of compensation adjustments totaling $284,600 and transfers totaling $15,000 from the Faculty Recruitment Reserve to meet salary commitments for new faculty. A transfer of $50,400 was made from the Office of the Provost Strategic Initiative Fund to meet requirements of an external grant and will be used to fund a 1.0 FTE position. Program Changes For FY 2005, the budget is increased by $217,600, which reflects the School’s 75 percent share of projected revenue to be generated from the differential tuition rate assessed for graduate engineering courses.

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Schools and Colleges COLLEGE OF ENGINEERING

2. OTHER MATTERS

Beginning in FY 2004, a differential tuition rate was set for graduate engineering courses. This differential, which for FY 2005 is set at a proposed rate of $54.25 per credit hour, is expected to generate total revenues of $753,000. Of that amount, 75 percent is reinvested in the program. That aggregate reinvestment totals $564,700 for FY 2005, which includes the $217,600 increase budgeted for FY 2005.

3. FTE DISTRIBUTION

The total salary budget for the College is $11.0 million, which represents 93.3 percent of the total College of Engineering budget, excluding the $564,700 reinvestment of differential tuition. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

89.3

25.0

2.2

5.7

122.2

32.7

154.9

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Schools and Colleges COLLEGE OF FINE, PERFORMING AND COMMUNICATION ARTS




Budget



Non-Academic Salaries 1,175.9 1,104.7 (71.2) -6.1%


TOTAL SALARIES 7,814.1 7,960.9 146.8 1.9%




Revenue (33.6) (33.6) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was increased by $146,800. Increases to the budget for compensation adjustments totaled $206,200. As part of the FY 2004 budget process, a voluntary retirement program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the College of Fine, Performing and Communication Arts, budgetary savings totaling $59,400 were realized from this program and the College’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the voluntary Retirement Program were closed.

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Schools and Colleges COLLEGE OF FINE, PERFORMING AND COMMUNICATION ARTS

2. FTE DISTRIBUTION

The total salary budget for the College is $8.0 million, which represents 94.3 percent of the total College of Fine, Performing and Communication Arts budget. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

84.0

26.0

11.9

7.0

128.9

23.9

152.8

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Schools and Colleges GRADUATE SCHOOL




Budget


Academic Salaries 458.9 632.8 173.9 37.9%

Non-Academic Salaries 508.3 862.9 354.6 69.8%


TOTAL SALARIES 967.2 1,495.7 528.5 54.6%

General Expenses 12.7 78.4 65.7 100.0%+


TOTAL EXPENDITURES 979.9 1,574.1 594.2 60.6%

Revenue 0.0 0.0 0.0 0.0%


NET ALLOCATION (REVENUE) 979.9 1,574.1 594.2 60.6%


Technical Adjustments During FY 2004, the budget was increased by $438,500. Increases to the budget consist of compensation adjustments totaling $18,200 and a net transfer from Student Development and Campus Life of $420,300 to move the Graduate Admissions function to the Graduate School. Program Changes For FY 2004, program changes result in a net increase of $155,700. The budget is increased by $90,000 to fund a director position in Graduate Admissions and an additional $65,700 for operating expense of that unit.

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Schools and Colleges GRADUATE SCHOOL

2. TOTAL ALLOCATION The summary budget is comprised of the following business units:


Budget


Graduate Admissions* 0.0 574.5 574.5 n/a

Graduate School 521.0 532.4 11.4 2.2%

Graduate Research Assistants 458.9 467.2 8.3 1.8%

TOTAL ALLOCATION 979.9 1,574.1 594.2 60.6%

*The FY 2004 budget for Graduate Admissions was $420,300.

3. FTE DISTRIBUTION

The total salary budget for the School is $1.5 million, which represents 95.0 percent of the total Graduate School budget. Total funded FTE staffing, as reported by the School, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

16.5

0.0

3.0

19.5

16.2

35.7

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Schools and Colleges LAW SCHOOL




Budget





TOTAL SALARIES 5,394.7 5,607.8 213.1 4.0%

General Expenses 272.2 1,979.8 1,707.6 100.0%+


TOTAL EXPENDITURES 5,666.9 7,587.6 1,920.7 33.9%

Revenue (31.5) (31.5) 0.0 0.0%


NET ALLOCATION (REVENUE) 5,635.4 7,556.1 1,920.7 34.1%


Technical Adjustments During FY 2004, the budget was increased by $378,000. Increases to the budget for compensation adjustments totaled $128,000. Transfers totaling $250,000 were made to support strategic initiatives at the Law School. Program Changes For FY 2005, the budget will increase by $1,542,700 due to the transfer of the Financial Aid Awards budgets. These funds are specifically earmarked – as they were in the past – for Law School students but are transferred to the School’s budget to reflect its total resources to support its mission. University policy requires that all financial aid is disbursed through the Office of Scholarships and Financial Aid (OSFA). The movement of these budget amounts

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Schools and Colleges LAW SCHOOL

1. EXPLANATION OF CHANGES (continued) does not change that policy and OSFA continues to be responsible for ensuring that financial aid is awarded and disbursed in accordance with established guidelines.



Budget


Law School - Operations 5,635.4 6,013.4 378.0 6.7%

Law School - Scholarships & Awards* 0.0 1,542.7 1,542.7 100.0%

TOTAL ALLOCATION 5,635.4 7,556.1 1,920.7 34.1%

*The FY 2004 budget totaled $1,421,800. 3. FTE DISTRIBUTION

The total salary budget for the School is $5.6 million, which represents 93.3 percent of the total Law School operating budget. Total funded FTE staffing, as reported by the School, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

38.0

0.0

0.0

1.0

39.0

25.0

64.0

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Schools and Colleges CENTER FOR LEGAL STUDIES




Budget


Academic Salaries (37.4) 99.8 137.2 100.0%+

Non-Academic Salaries 153.9 20.8 (133.1) -86.5%


TOTAL SALARIES 116.5 120.6 4.1 3.5%



TOTAL EXPENDITURES 127.3 131.4 4.1 3.2%

Revenue 0.0 0.0 0.0 0.0%


NET ALLOCATION (REVENUE) 127.3 131.4 4.1 3.2%


Technical Adjustments Budget increases consist of compensation adjustments totaling $4,100.

2. FTE DISTRIBUTION

The total salary budget for the Center is $120,600, which represents 91.8 percent of the total Center for Legal Studies budget. Total funded FTE staffing, as reported by the Center, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

1.0

0.0

0.0

0.8

1.8

1.0

2.8

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Schools and Colleges COLLEGE OF LIBERAL ARTS AND SCIENCES




Budget


Academic Salaries 34,997.9 36,272.0 1,274.1 3.6%



TOTAL SALARIES 40,178.2 41,540.9 1,362.7 3.4%




Revenue (147.5) (147.5) 0.0 0.0%

Internal Transfers (731.4) (731.4) 0.0 0.0%



Restatement of FY 2004 Approved Budget During FY 2004, an administrative reorganization occurred that resulted in the merging of the College of Liberal Arts and the College of Science into the College of Liberal Arts and Sciences. As a result of this reorganization, the FY 2004 Approved Budget is combined and restated as follows (in thousands of dollars): FY 2004 Approved Budget

College of Liberal Arts $16,713.4 College of Science 25,111.2

Restated FY 2004 Budget $41,824.6

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1. EXPLANATION OF CHANGES (continued) Technical Adjustments During FY 2004, the budget was increased by $1,344,600. Increases to the budget consist of compensation adjustments totaling $1,281,500 and transfers totaling $109,500 from the Faculty Recruitment Reserve to meet salary commitments for new faculty. As part of the FY 2004 budget process, a Voluntary Retirement Program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the College of Liberal Arts and Sciences, budgetary savings totaling $46,400 were realized from this program and the College’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the Voluntary Retirement Program were closed. Program Adjustments For FY 2005, base funding of $265,000 is provided to supplement funding of the English Language Institute. In the past this was funded on an annual basis at year end from tuition revenues generated by the program.



Budget


Liberal Arts 16,713.4 17,541.6 828.2 5.0%

Science 25,111.2 25,892.6 781.4 3.1%


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3. FTE DISTRIBUTION

The total salary budget for the College is $41.5 million, which represents 95.6 percent of the total College of Liberal Arts and Sciences budget. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

411.6

183.5

4.2

29.0

628.3 120.5

748.8

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Schools and Colleges LIBRARY AND INFORMATION SCIENCE PROGRAM




Budget


Academic Salaries 950.9 873.2 (77.7) -8.2%

Non-Academic Salaries 39.5 165.9 126.4 100.0%+


TOTAL SALARIES 990.4 1,039.1 48.7 4.9%




Revenue 0.0 0.0 0.0 0.0%




Technical Adjustments For FY 2004, the budget was increased by $48,700 for compensation increases. A transfer of $122,000 occurred from academic salaries to non-academic salaries to fund an academic administrator position.

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Schools and Colleges LIBRARY AND INFORMATION SCIENCE PROGRAM

2. FTE DISTRIBUTION

The total salary budget for the Program is $1.0 million, which represents 95.8 percent of the total Library and Information Science Program budget. Total funded FTE staffing, as reported by the Program, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

12.0

0.5

0.8

1.0

14.3

2.0

16.3

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Schools and Colleges SCHOOL OF MEDICINE




Budget





TOTAL SALARIES 38,612.6 40,594.0 1,981.4 5.1%

General Expenses 2,448.8 5,784.7 3,335.9 100.0%+



Revenue (427.1) (783.4) (356.3) 83.4%




Technical Adjustments During FY 2004, the budget was increased by $1,669,400. Increases to the budget consist primarily of compensation adjustments totaling $1,179,900. Total funding of $454,500 was added to create 6.0 FTE faculty positions in accordance with the University’s 14-point agreement with the Karmanos Cancer Institute. The budget was also increased by transfers totaling $35,000 from the Minority Faculty Recruitment Reserve to meet salary requirements for new faculty. Program Changes For FY 2005, the budget is increased by program changes totaling $3,291,600. Of this amount, $2,979,500 will be transferred to the School’s budget from the Financial Aid Awards

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Schools and Colleges SCHOOL OF MEDICINE

1. EXPLANATION OF CHANGES (continued) budget. These funds are specifically earmarked – as they were in the past – for Medical students but are transferred to the School’s budget to reflect its total resources and to reflect the mission. University policy requires that all financial aid is disbursed through the Office of Scholarships and Financial Aid (OSFA). The movement of these budget amounts does not change that policy and OSFA continues to be responsible for ensuring that financial aid is awarded and disbursed in accordance with established guidelines. In FY 2005, course fees assessed to M.D. students will increase as part of a two-year plan. During FY 2005, these fees will increase from $350 to $700, generating an estimated $356,300 in revenue to defray increased costs for equipment and supplies used by students in their classes. In FY 2006, this fee will increase to $1,050. The University has an agreement with the Karmanos Cancer Institute that includes a commitment to fund a total of 10.0 FTE faculty lines in the School of Medicine to support cancer research. Funding for 6.0 FTE was provided in FY 2004; the remaining lines, along with related funding totaling $312,100, will be provided in FY 2005.

2. TOTAL ALLOCATION

The summary budget is comprised of the following business units:


Budget


Medical School Operations 40,144.3 42,125.8 1,981.5 4.9%

Scholarship Awards * 0.0 2,979.5 2,979.5 100.0%


* The FY 2004 budget totaled $2,746,100 3. FTE DISTRIBUTION

The total salary budget for the School is $40.6 million, which represents 96.4 percent of the total School of Medicine operating budget. Total funded FTE staffing, as reported by the School, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

334.0

38.0

29.1

19.5

420.6

125.3

545.9

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Schools and Colleges COLLEGE OF NURSING




Budget





TOTAL SALARIES 5,821.0 6,198.9 377.9 6.4%




Revenue (10.0) (269.2) (259.2) 100.0%+




Technical Adjustments During FY 2004, the budget was increased by $176,500. Increases to the budget consist primarily of compensation adjustments totaling $144,000, and transfers totaling $25,000 and $7,500 from Faculty and Minority Recruitment Reserves, respectively. Program Changes For FY 2005, the budget is increased by program changes totaling $53,000, which reflects the School’s 75 percent share of projected revenue to be generated from the differential tuition rate assessed for graduate nursing courses.

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Schools and Colleges COLLEGE OF NURSING

1. EXPLANATION OF CHANGES (continued) For FY 2005, the College will begin to assess a clinical course fee of $50 per credit hour to all students enrolled in those courses. This fee will generate an additional $259,200 in revenue, which will provide resources to hire additional faculty and staff, and thereby allow the College to accept more of the increasing number of applicants for admission to the program.

2. OTHER MATTERS

Beginning in FY 2004, a differential tuition rate was set for graduate nursing courses. This differential, which for FY 2005 is set at a proposed rate of $54.25 per credit hour, is expected to generate total revenues of $183,400. Of that amount, 75 percent is reinvested in the program. That aggregate reinvestment totals $137,500 for FY 2005, which includes the $53,000 increase budgeted for FY 2005.

3. FTE DISTRIBUTION

The total salary budget of the College is $6.2 million, which represents 98.4 percent of the total College of Nursing budget, excluding the $137,500 reinvestment of differential tuition. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

58.5

1.0

4.5

3.0

67.0

23.0

90.0

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Schools and Colleges EUGENE APPLEBAUM COLLEGE OF PHARMACY AND HEALTH SCIENCES




Budget





TOTAL SALARIES 7,791.1 8,049.4 258.3 3.3%

General Expenses 647.7 1,020.1 372.4 57.5%



Revenue (38.1) (38.1) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was increased by $233,300. Increases to the budget consist of compensation adjustments totaling $218,300, and transfers totaling $15,000 from the Faculty Recruitment Reserve to meet salary commitments for new faculty. Program Changes For FY 2005, the budget is increased by $397,400, which reflects the School’s 75 percent share of projected revenue generated from the differential tuition rate assessed for the Doctorate of Pharmacy (Pharm.D) program.

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Schools and Colleges EUGENE APPLEBAUM COLLEGE OF PHARMACY AND HEALTH SCIENCES

2. OTHER MATTERS

In FY 2003, the Board of Governors approved a differential tuition rate for the Pharm.D program. This differential rate generates additional revenue to meet the costs of clinical faculty ratios required by state licensing requirements. A portion of this differential is allocated to the Pharm.D program, as follows:

Fiscal Year

Percent Distribution

2003 50%

2004 50%

2005 75%

2006 85%

For FY 2005, aggregate budgeted differential tuition revenue for the Pharm.D program is $838,700, of which $629,000 is returned to the program, including the $397,400 increase budgeted for FY 2005.

3. FTE DISTRIBUTION

The total salary budget for the College is $8.0 million, which represents 96.0 percent of the total Eugene Applebaum College of Pharmacy and Health Sciences budget, excluding the $629,000 reinvestment of differential tuition. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

71.3

2.2

12.0

6.0

91.5

27.0

118.5

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Schools and Colleges SCHOOL OF SOCIAL WORK




Budget



Non-Academic Salaries 744.2 666.7 (77.5) -10.4%


TOTAL SALARIES 3,304.0 3,368.5 64.5 2.0%




Revenue 0.0 0.0 0.0 0.0%





2. FTE DISTRIBUTION

The total salary budget for the School is $3.4 million, which represents 94.5 percent of the total School of Social Work budget. Total funded FTE staffing, as reported by the School, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

27.5

0.0

16.3

2.0

45.8

15.0

60.8

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Schools and Colleges COLLEGE OF URBAN, LABOR AND METROPOLITAN AFFAIRS




Budget





TOTAL SALARIES 6,978.7 7,172.2 193.5 2.8%




Revenue (334.1) (334.1) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was increased by compensation adjustments totaling $194,700. Non-academic salaries increased at a faster pace than academic due to a transfer from academic salaries to fund a director position.

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Schools and Colleges COLLEGE OF URBAN, LABOR AND METROPOLITAN AFFAIRS



Budget


College of Urban, Labor and Metro Affairs 2,298.3 2,353.3 55.0 2.4%

Interdisciplinary Studies Program 2,033.8 2,076.5 42.7 2.1%

Archives 812.6 821.1 8.5 1.0%

Geography and Urban Planning 623.6 643.5 19.9 3.2%

Center for Urban Studies 592.7 602.6 9.9 1.7%

Chicano-Boricua Studies 325.2 367.7 42.5 13.1%

Center for State Policy 325.4 328.6 3.2 1.0%

Center for Labor Studies 309.5 315.9 6.4 2.1%

Center for Peace and Conflict Studies 177.9 181.2 3.3 1.9%

University Professors 168.3 171.6 3.3 2.0%

TOTAL ALLOCATION 7,667.3 7,862.0 194.7 2.5%

3. FTE DISTRIBUTION

The total salary budget for the College is $7.2 million, which represents 91.2 percent of the total College of Urban, Labor and Metropolitan Affairs budget. Total funded FTE staffing, as reported by the College, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

46.6

11.0

2.6

32.5

92.7

41.5

134.2

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Schools and Colleges UNDERGRADUATE GENERAL EDUCATION




Budget





TOTAL SALARIES 125.5 127.0 1.5 1.1%



TOTAL EXPENDITURES 131.0 132.5 1.5 1.1%

Revenue 0.0 0.0 0.0 0.0%


NET ALLOCATION (REVENUE) 131.0 132.5 1.5 1.1%



2. FTE DISTRIBUTION

The total salary budget for the Program is $127,000, which represents 95.9 percent of the total Undergraduate General Education budget. Total funded FTE staffing, as reported by the Program, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

0.0

2.8

0.0

2.8

1.0

3.8

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FY 2004 Approved

Budget


Office of the Provost 31,085.1 39,767.7 8,682.6 27.9%Student Development & Campus Life 8,871.0 9,144.4 273.4 3.1%Libraries 15,851.8 16,338.5 486.7 3.1%Research 19,631.8 22,205.1 2,573.3 13.1%

Total Academic Support 75,439.7 87,455.6 12,015.9 15.9%

Student Financial Aid 24,104.5 20,767.5 (3,337.0) -13.8%

Variance $ %



Academic SupportSUMMARY BUDGET

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Office of the Provost SUMMARY DIVISION BUDGET

MISSION STATEMENT

he mission of the Office of the Provost, as the central academic administrative unit of the University, is to provide leadership and support in Wayne State University’s continuing role as a Carnegie I urban research university; to provide citizens of metropolitan Detroit with

access to a comprehensive university curriculum at a reasonable cost; and to provide public service with special commitment to our urban environment. The Office of the Provost provides leadership, sets academic unit goals, and assists in academic planning and facilitation of academic programs. These programs are delivered through 12 schools and colleges with aggregate budgets totaling $164.4 million. This office determines the University's educational and research goals by maintaining and continuously seeking to improve teaching, research and service. The Office of the Provost interacts and coordinates activities with other divisions of the University; is responsible for University budgeting and institutional analysis; facilitates academic governance and faculty interchange; and provides direction in the hiring of new faculty and on-going development of existing faculty. During 2004 the Computing and Information Technology Department (C&IT) was transferred to the Provost’s Office. This operation is budgeted at $11.5 million for 2004 and $13.9 million for 2005.

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Budget




Fringe Benefits 146.2 175.8 29.6 20.2%

TOTAL SALARIES 21,710.7 25,010.0 3,299.3 15.2%

General Expenses 10,838.8 17,421.2 6,582.3 60.7%

Non-Recurring 3,253.4 2,103.2 (1,150.2) -35.4%


Revenue (26.0) (253.1) (227.1) 100.0%+

Internal Transfers (4,691.8) (4,513.6) 178.2 -3.8%



Restatement of FY 2004 Approved Budget

FY 2004 Approved Budget $18,793.0

Transfer from other units:

Computing & Information Technology 11,512.6 Institutional Research, Assessment & Data Resources 593.6 Office of University Budget 519.2

Transfer to other units:

Office of Teaching and Learning 333.3

Restated FY2004 Approved Budget $31,085.1

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1. EXPLANATION OF CHANGES (continued) Technical Adjustments During FY 2004, the budget was increased by adjustments totaling $324,700. Increases to the budget consist of compensation adjustments totaling $292,200 and a transfer of one FTE in the amount of $32,500 from Student Development and Campus Life. Offsetting these increases were transfers totaling $545,400. Transfers of $206,900 were made to individual academic units to assist in meeting salary commitments for new faculty. As part of the FY 2004 budget process, a Voluntary Retirement Program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the Office of the Provost, budgetary savings totaling $89,600 were realized from this program and the Office’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the Voluntary Retirement Program were closed. Office of the Provost funds were used in FY 2004 to fund (a) $85,000 for Law School faculty, (b) $53,300 for a Liberal Arts and Sciences faculty line and (c) $50,400 for a College of Engineering position. A 1.0 FTE position with related salary budget of $60,200 was transferred from Institutional Research, Assessment and Data Resources to the Office of Scholarships and Financial Aid in Student Development and Campus Life. Program Changes For FY 2005, the budget is increased by adjustments netting to $10,053,500. Beginning in FY 2004, omnibus fee revenues set aside for student computing and technology will be funded 50 percent in Computing and Information Technology (C&IT) to support infrastructure needs and 50 percent in the Office of the Provost for distribution to schools and colleges. The total amount allocated for FY 2005 is $4,678,200, of which $2,339,100 will be added to the C&IT budget and the same amount to the Office of the Provost budget. The budget will be increased by a total of $2,000,000 to support continued strengthening of academic programs and will be distributed based on guidelines and decisions set by the Provost.

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1. EXPLANATION OF CHANGES (continued) The Metropolitan Programs and Summer Session will receive an additional $1,544,500 in base funding to cover the increased costs of part-time faculty. Funds totaling $580,700 are added to the budget of Institutional Research, Assessment and Data Resources to support the restructuring of that unit. Of that amount, $529,100 represents the budget for the Testing and Evaluation unit which has been transferred from Student Development and Campus Life. The remaining $51,600 is funding for an Associate Director position. Funds totaling $400,000 are provided for the second year of a two-year commitment to the Honors Program. Allocations of $400,000 and $200,000 are made to replenish the Faculty Recruitment and Minority Recruitment Funds, respectively. Base funding for Faculty Set-up costs is increased by $200,000. Also, Minority Women Summer Grants is transferred from the Division of Research in the amount of $50,100. Non-Recurring For FY 2005, a distribution of net summer revenue totaling $2,103,200 is budgeted. This is a reduction of $196,800 from the amount funded in FY 2004. The FY 2004 allocation of $753,400 (from supplemental appropriations) has been fully expended and funding for faculty set-up costs, previously funded on a non-recurring basis, are funded recurringly for FY 2005. FY 2004 non-recurring funding of $200,000 for faculty set-up has been funded to base.

2. OTHER MATTERS The Faculty Recruitment and Minority Faculty Recruitment Funds are funded at $400,000 and $200,000, respectively for FY 2005. As of the date of budget development, both accounts have unexpended funds from FY 2004 that are expected to be transferred to schools and colleges’ budgets to meet salary commitments for new faculty. These unexpended funds total $393,000 and have been retained in the budget. On September 30, 2004, any remaining balance from the FY 2004 allocation will be recaptured, and any funds transferred prior to that date but after budget development will be permanently added to the budgets of the respective schools and colleges on October 1, 2004. In October, 2003, Computing and Information Technology was transferred to the Office of the Provost. The $14.0 million budget for this unit is comprised of the following units:

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2. OTHER MATTERS (continued)

Computing and Information Technology $6,494.8 University Information Systems 3,844.6 Student Technology Omnibus Fee Allocation 2,339.1 Network Services 903.2 University Television 396.4 TOTAL $13,978.1

Included in the Network Services budget is estimated revenue from charges made to University units for telephones, phone services and operating support. This revenue is budgeted at $4.4 million for FY 2005.



Budget


Computing and Information Technology 11,512.6 13,978.1 2,465.5 21.4%

Office of the Vice President 4,599.8 8,413.5 3,813.7 82.9%

Metropolitan Programs and Summer School 5,495.9 6,848.7 1,352.8 24.6%

Extension Program 3,185.9 3,124.2 (61.7) -1.9%

Student Retention 1,888.1 1,909.4 21.3 1.1%

Institutional Research, Assessment & Data Resources 593.6 1,146.0 552.4 93.1%

Faculty Set-ups 1,000.0 1,000.0 0.0 0.0%

Community Education 948.7 983.6 34.9 3.7%

Faculty Recruitment Reserve 400.0 686.5 286.5 71.6%

University Budget 519.2 530.6 11.4 2.2%

University Press 419.1 419.1 0.0 0.0%

Minority Faculty Recruitment 200.0 306.5 106.5 53.3%

Macomb University Center 196.0 242.8 46.8 23.9%

Ombudsperson 126.2 128.6 2.4 1.9%

Minority/Women Summer Grant * 0.0 50.1 50.1 0.0%


* This program was transferred from Research. The FY 2004 budget was $50,100.

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4. FTE DISTRIBUTION

The total salary budget for the Office is $25 million, which represents 83.4 percent of the total Office of the Provost budget, excluding Academic Enrichment funding, Faculty Set-ups, Omnibus Fee – Student Technology and Net Change in Summer Revenue. Total funded FTE staffing, as reported by the Office, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

7.0

1.5

151.5

17.0

177.0

196.9

373.9

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Office of the Provost STUDENT DEVELOPMENT AND CAMPUS LIFE

MISSION STATEMENT

he mission of Student Development and Campus Life (SDCL) is to provide comprehensive student support services that promote enrollment management; academic and intellectual development; foster personal, social and career development in a diverse, urban university

environment; and foster student retention through advising, counseling, and academic support activities. SDCL operates under the executive oversight of the Provost. SDCL is responsible for providing student service to the University’s over 33,000 students and for ensuring that they build a productive and memorable college experience. Of the total budget of $29.9 million, $20.8 million (69.6 percent) is earmarked for financial aid awards. The remaining $9.1 million (30.4 percent) funds operations. More than 75 percent of the operating budget supports four primary functions – Admissions, Registrar, Financial Aid and Student Support Services.

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Budget


Academic Salaries 1,897.5 1,783.1 (114.4) -6.0%



TOTAL SALARIES 7,760.5 7,326.8 (433.7) -5.6%

General Expenses 26,236.2 23,155.1 (3,081.1) -11.7%


TOTAL EXPENDITURES 33,996.7 30,481.9 (3,514.8) -10.3%

Revenue (1,006.2) (570.0) 436.2 -43.4%

Internal Transfers (15.0) 0.0 15.0 -100.0%

NET ALLOCATION (REVENUE) 32,975.5 29,911.9 (3,063.6) -9.3%


Technical Adjustments During FY 2004, the budget was revised to reflect executive decisions about Student Development and Campus Life operations. Adjustments during the year resulted in a net increase of $356,300 to the budget. The budget was increased during the fiscal year by $837,600, including the permanent transfer of $450,000 allocated from student omnibus fees to Student Activities (this transfer had been made on an annual basis in previous years). Compensation adjustment totaling $197,900 were also added to the Division’s budget. A number of personnel changes occurred as the Division sought to align operations and processes with its mission, and to support the University’s emphasis on strengthening enrollment. The amount of $189,700 and 2.0 FTE was transferred from various sources to support this area of emphasis.

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1. EXPLANATION OF CHANGES (continued)

The Graduate School has assumed responsibility for graduate admissions from Student Development and Campus Life. All staff, related salaries and expense budgets totaling $420,300 were transferred to the Graduate School budget. An additional 1.0 FTE position and funding totaling $32,500 were transferred to the Office of the Provost to support student retention and advising. As part of the FY 2004 budget process, a Voluntary Retirement Program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the Division of Student Development and Campus Life, budgetary savings totaling $28,500 were realized from this program and the Division’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the Voluntary Retirement Program were closed. Program Changes

Operations -- A transfer of $529,100 to the Office of the Provost is made to move Testing and Evaluations to Institutional Research, Assessment and Data Resources. The Dean of Students budget is increased by $120,400 to replace funding provided through the Student Center Auxiliary with Omnibus Fee revenues. Revenue generated by the FY 2004 increase in graduation application fees totalling $117,000 has been transferred to Commencements in Development and Alumni Affairs, and an allocation of $117,000 has been provided to the Enrollment Services to offset this transfer. Budgeted revenues for transcript fees (which are no longer assessed) in Enrollment Services totaling $92,100 has been eliminated. Financial Aid Awards – For FY 2005, program changes result in a net decrease of $3,419,900. The Student Development and Campus Life budget includes amounts funded for Financial Aid Awards. Tuition based financial aid is increased each year by the same percentage as tuition and fees are increased. The adjustment for FY 2005 totals $1,184,900, which has been added to the respective financial aid budgets. The financial aid awards budget in SDCL is reduced by transfers totaling $2,979,500 and $1,542,700 as the financial aid budgets earmarked for M.D. students and Law School students respectively, are transferred to the School’s budgets to reflect its mission. University policy requires that all financial aid is disbursed through the Office of Scholarships and Financial Aid (OSFA). The movement of these budget amounts does not change that policy and OSFA continues to be responsible for ensuring that financial aid is awarded and disbursed in accordance with established guidelines.

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2. TOTAL ALLOCATION


Variance FY 2004

Approved Budget


Division Operations

Admissions 2,596.2 2,374.4 (221.8) -8.5%

Enrollment Services 1,722.4 2,208.4 486.0 28.2%

Financial Aid 2,102.1 1,734.9 (367.2) -17.5%

Student Support Services* 0.0 357.7 357.7 100.0%

Student Career Planning and Placement 712.9 592.6 (120.3) -16.9%

Student Activities 31.4 481.6 450.2 100.0%+

Office of the Vice President 415.2 339.0 (76.2) -18.4%

Dean of Students 185.4 425.3 239.9 100.0%+

Academic College Enrichment Services 736.6 286.2 (450.4) -61.1%

International Services 161.4 222.6 61.2 37.9%

South End 121.7 121.7 0.0 0.0%

Student Evaluation Process 85.7 0.0 (85.7) -100.0%

Subtotal Division Operations 8,871.0 9,144.4 273.4 3.1%

Awards/Scholarships

Presidential Scholarships 7,006.7 7,174.8 168.1 2.4%

Graduate Awards 6,579.6 7,065.5 485.9 7.4%

Special Programs 3,269.7 3,347.7 78.0 2.4%

Board of Governors Awards 1,531.8 1,575.9 44.1 2.9%

State/Federal Match Requirements 1,244.3 1,288.4 44.1 3.5%

Indian Tuition Reimbursements 210.5 218.7 8.2 3.9%

Detroit Compact Scholarships 94.1 96.5 2.4 2.6%

Graduate Awards – Law and Medicine 4,064.8 0.0 (4,064.8) -100.0%

Law Non-Resident Tuition Awards 103.0 0.0 (103.0) -100.0%

Subtotal Awards/Scholarships 24,104.5 20,767.5 (3,337.0) -13.8%

TOTAL ALLOCATION 32,975.5 29,911.9 (3,063.6) -9.3%

* The FY 2004 budget totaled $286,900.

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3. FTE DISTRIBUTION

The total salary budget for the unit is $7.3 million, which represents 80.2 percent of the total Student Development and Campus Life General Fund budget, excluding Financial Aid Awards Scholarships. Total funded FTE staffing, as reported by the Office of the Provost, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

2.0

0.0

65.5

67.5

147.8

215.3

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Libraries SUMMARY DIVISION BUDGET

MISSION STATEMENT

he Libraries Division is responsible for the operations of all of the University’s library facilities, which include the Purdy/Kresge Library, the Science and Engineering Library, the Arthur Neef Law Library, the Vera Shiffman Medical Library and the David W. Adamany

Undergraduate Library. Media Services is also a part of the Libraries and is responsible for providing multimedia audio visual equipment and staff to support academic units and other University functions. Two academic units, the Library and Information Science Program and Undergraduate General Education are administered through the Libraries Division.

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Budget





TOTAL SALARIES 7,951.0 8,062.7 111.7 1.4%




Revenue (252.0) (252.0) 0.0 0.0%




Restatement of FY 2004 Approved Budget During FY 2004, an administrative reorganization occurred that resulted in a change to the budget of Libraries. As a result of this reorganization, the FY 2004 Approved Budget is restated as follows (in thousands of dollars):


Transfer from other unit: Office for Teaching and Learning 333.4

Restated FY 2004 Approved Budget $15,851.8

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1. EXPLANATION OF CHANGES (Continued)

Technical Adjustments During FY 2004, the budget was increased by $111,700. Increases to the budget consist of compensation adjustments totaling $150,000. As part of the FY 2004 budget process, a Voluntary Retirement Program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the Libraries division, budgetary savings totaling $38,300 were realized from this program and the Library’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the Voluntary Retirement Program were closed. Program Changes For FY 2005, the budget is increased by $375,000, this is provided as an inflation adjustment on periodicals maintained as part of the Libraries’ collections. Approximately $6.5 million of the Division’s budget is expended on acquisition of volumes and collections. This represents 40.0 percent of the total budget.



Budget


Libraries 15,518.5 16,000.9 482.4 3.1%

Office of Teaching and Learning 333.3 337.6 4.3 1.3%


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3. FTE DISTRIBUTION

The total salary budget for the Division is $8.1 million, which represents 82.7 percent of the total Libraries Division General Fund budget, excluding the expenditures for acquisition of volumes and collection. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

6.5

0.0

33.0

39.5

117.3

156.8

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Division of Research SUMMARY DIVISION BUDGET

MISSION STATEMENT

he mission of the Division of Research is to provide leadership for the University in development and support of quality research programs that are nationally competitive and consistent with the goals of the University.

Of the $22.2 million budget proposed for FY 2005, $13.4 million (60.4 percent) is attributable to Research Incentives that have been distributed to principal investigators, departments, and school/colleges in accordance with University policy. The Division supports the University’s $170.5 million in annual research funding (2003) and $199.0 million in annual research expenditures (2002).

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Budget





TOTAL SALARIES 6,074.4 6,488.2 413.8 6.8%


Non-Recurring 200.0 0.0 (200.0) -100.0%


Revenue (113.0) (113.0) 0.0 0.0%




Technical Adjustments During FY 2004, the budget was decreased by net adjustments of $31,000. Increases to the budget consist of compensation adjustments totaling $158,000 and transfers totaling $111,000 from Enhancement of Research Support. A reduction of $300,000 was made to adjust Research Stimulation to properly account for the change in the distribution formula. Program Changes For FY 2005, changes in program funding will result in a net increase of $2,804,300. An allocation of $1,000,000 is provided for continued strengthening of academic and research programs. As a result of the $3.6 million budgeted increase in Indirect Cost Recovery, the Research Incentive budget is increased by $942,700, the Research Stimulation budget is increased by $362,600 and the Office of the Vice President for Research budget is increased by $108,800.

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1. EXPLANATION OF CHANGES (continued) In addition, the budget of $240,300 relating to the Office of Federal Affairs is transferred to the Division from the Executive Office of the President. An allocation of $200,000 is provided as additional base funding for Faculty Set-up costs, bringing total base funding in the Division to $1.0 million. The budget of $50,100 relating to the Minority/ Women Summer Grant is transferred to the Office of the Provost. Non-Recurring Funding for Faculty Set-Up Costs, previously funded on a non-recurring basis, has been funded recurringly for FY 2005.

2. OTHER MATTERS

Beginning October 1, 2003, the policy for the distribution of Indirect Cost Recovery (ICR) as prescribed in Executive Order 86-2 has been revised. The revisions include a change in the percentage allocations and new allocations to meet the needs for facilities maintenance in research buildings and operating support within the Research Division. This fund, maintained in Central Accounts, will provide resources to meet continuing improvements and capital maintenance in buildings that house research activities. After meeting this commitment, the balance of ICR is distributed in accordance with the following schedule:

Executive

Order 86-2

New

Policy

Department 15.0% 11.5%

Research Stimulation 10.0% 10.0%

School/College 10.0% 7.5%

Enhancement for Research Support1 10.0% 7.5%

Principal Investigator 8.5% 7.0%

Research Facilities Fund - 7.0%

Vice President Operations - 3.0%

TOTAL 53.5% 53.5%

1 Enhancement for Research Support is allocated on all ICR in excess of $5.2 million in accordance with the percentage specified.

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2. OTHER MATTERS (continued)

The unallocated ICR is used to support University expenditure attributable to research activity – e.g., utilities, depreciation, administrative expenses, etc.

3. TOTAL ALLOCATION



Budget


Research Incentives 9,049.8 9,620.1 570.3 6.3%

Research Stimulation 3,365.3 3,800.4 435.1 12.9%

Office of the VP for Research 2,260.0 3,436.0 1,176.0 52.0%

Sponsored Program Administration 1,729.2 1,818.7 89.5 5.2%

Research Support 1,407.0 1,485.3 78.3 5.6%

Institute of Gerontology 868.1 897.5 29.4 3.4%

Hazardous Waste Disposal 491.0 491.0 0.0 0.0%

Federal Affairs* 0.0 240.3 240.3 n/a

Research Awards 205.0 205.0 0.0 0.0%

Human & Animal Investigation Committee 131.0 133.4 2.4 1.8%

Research Excellence & Economic Development 75.4 77.4 2.0 2.7%

Minority/Women Summer Grant 50.0 0.0 (50.0) -100.0%


*The FY 2004 budget totaled $237,100. 4. FTE DISTRIBUTION

The total salary budget for the Division is $6.5 million, which represents 75.6 percent of the total Division of Research General Fund budget excluding Research Awards, Research Incentives and Research Stimulation. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

5.4

1.0

0.0

5.2

11.6

108.9

120.5

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FY 2004 Approved

Budget


Executive Office of the President 8,067.9 8,287.2 219.3 2.7%Administrative Operations 7,054.9 7,153.8 98.9 1.4%Development & Alumni Relations 3,680.0 4,425.4 745.4 20.3%Finance and Facilities 26,727.9 27,355.4 627.5 2.3%

Total Divisions 45,530.7 47,221.7 1,691.0 3.7%

Variance $ %



DivisionsSUMMARY BUDGET

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Executive Office of the President SUMMARY DIVISION BUDGET

MISSION STATEMENT

he Executive Office of the President is responsible for managing all of the executive and staff functions of the University, for the work of the Board of Governors, and for University-wide planning, coordinating and advising functions.

Specific departments within this division include Athletics, Marketing, Internal Audit, General Counsel and Governmental Affairs.

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Budget





TOTAL SALARIES 5,680.7 5,862.4 181.7 3.2%


Non-Recurring 600.0 400.0 (200.0) -33.3%


Revenue (15.0) 0.0 15.0 -100.0%

Internal Transfers (2.5) 0.0 2.5 -100.0%





Transfers to other units:

Institutional Research, Assessment and Data Resources (593.7) Office of University Budget (519.2)

Restated FY2004 Approved Budget $8,067.9 Technical Adjustments During FY 2004, the budget was increased by adjustments netting to $372,000. Increases to the budget consist of compensation adjustments totaling $181,700 and a transfer from

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1. EXPLANATION OF CHANGES (continued)

Omnibus Fee Commitments for $97,600 to support the Athletics Program. Two 0.5 FTE positions totaling $50,500 were transferred from Development and Alumni Affairs. A transfer of $52,200 from Central Accounts occurred to create a 1.0 FTE position in Marketing for the creation of Admission website. Funding totaling $66,800 and 1.0 FTE position was provided to Governmental Affairs to support community relations events. Transfers totaling $48,800 to Student Development and Campus Life and a 1.0 FTE position to Development totaling $38,000 occurred. Program Changes For FY 2005, the budget will be increased by $200,000 to provide recurring support for the University’s advertising program. A $70,000 allocation is provided for network support in the Office of Marketing and Communications. Revenue totaling $15,000 has been eliminated from the Marketing and Communications budget. Internal transfers totaling $2,500 in the Internal Audit budget has been eliminated. The Federal Affairs budget of $240,300 is transferred to the Division of Research. Non-Recurring For FY 2005 a non-recurring allocation of $400,000 to supplement base funding for advertising replaces the FY 2004 non-recurring amount of $600,000.

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Budget


Athletics 3,346.6 3,532.5 185.9 5.6%

Marketing and Communications 1,625.4 1,758.8 133.4 8.2%

General Counsel 919.7 951.4 31.7 3.4%

Office of the President 616.9 625.4 8.5 1.3%

Internal Audit 468.5 486.1 17.6 3.8%

Governmental Affairs 632.6 464.4 (168.2) -26.6%

Executive Vice President 233.6 240.8 7.2 3.1%

Secretary of University 214.4 217.6 3.2 1.4%

Commission on the Status of Women 10.2 10.2 0.0 0.0%


3. FTE DISTRIBUTION

The total salary budget for the Division is $5.9 million, which represents 71.1 percent of the total Executive Office of the President budget. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

4.0

0.0

25.0

29.0

78.3

107.3

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Administrative Operations SUMMARY DIVISION BUDGET

MISSION STATEMENT

he Administrative Operations division is a new division established as part of the March 2003 Executive Reorganization. This division includes the offices of Human Resources, Public Safety, Business Operations and Fitness Center.

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Budget





TOTAL SALARIES 5,847.1 5,946.0 98.9 1.7%

General Expenses 3,544.0 2,756.0 (788.0) -22.2%


TOTAL EXPENDITURES 9,391.1 8,702.0 (689.1) -7.3%

Revenue (789.1) (1.1) 788.0 -99.9%

Internal Transfers (1,547.1) (1,547.1) 0.0 0.0%





Transfer to other units:

Computing and Information Technology $11,512.6

Restated FY2004 Approved Budget $7,054.9 Technical Adjustments During FY 2004, the budget was increased by compensation adjustments totaling $98,900.

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2. OTHER MATTERS The Recreation and Fitness Center is funded from three primary sources – omnibus fees totaling $858,100, the Fitness Center fee, and membership fees. During FY 2004, the operations of the Fitness Center were reviewed and a decision was made to discontinue the previous outsourcing relationship and to bring management of this facility in-house. As part of that review, a financial plan was developed that would allow the Fitness Center to become a self-supporting operation by no later than FY 2006. For FY 2005, the Fitness Center will be converted to an Auxiliary Operation and a full budget will be included in that presentation.



Budget


Public Safety 2,709.1 2,735.7 26.6 1.0%

Human Resources 2,122.7 2,161.7 39.0 1.8%

Business Operations 1,491.1 1,524.4 33.3 2.2%

Fitness Center 732.0 732.0 0.0 0.0%


4. FTE DISTRIBUTION

The total salary budget for the Division is $5.9 million, which represents 83.1 percent of the total Administrative Operations budget. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

0.0

0.0

0.0

0.0

123.7

123.7

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Development and Alumni Affairs SUMMARY DIVISION BUDGET

MISSION STATEMENT

he Division of Development and Alumni Affairs is responsible for maintaining productive relations with University alumni, and current and prospective donors. It is responsible for all University fundraising efforts and works directly with academic units to coordinate their

individual efforts. In addition, the division is responsible for the coordination and collaboration of University special events and services. The University is currently involved in a $500 million capital campaign which will strengthen the University’s $150 million endowment and generate funds for scholarships, faculty chairs and facilities. This campaign has been underway for several years and is expected to continue through FY 2008. Wayne State has over 200,000 alumni of which approximately 183,000 reside in the State of Michigan.

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Budget





TOTAL SALARIES 3,526.7 3,572.1 45.4 1.3%

General Expenses 228.3 1,045.3 817.0 100.0%+



Revenue (75.0) (192.0) (117.0) 100.0%+




Technical Adjustments During FY 2004, the budget was increased by net adjustments totaling $45,400. Increases to the budget consist of compensation adjustments totaling $57,900 and a transfer of a 1.0 FTE position from Marketing and Communication with a salary budget totaling $38,000. Two 0.5 FTE positions totaling $50,500 were transferred to Marketing and Communications. Program Changes For FY 2005, the budget will be increased by $700,000 to support continuing activities of the University’s capital campaign. In addition, the revenue due to graduation application fees for $117,000 has been transferred from Student Development and Campus Life and the same amount has been provided as an expense.

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2. OTHER MATTERS As the University continues its capital campaign efforts, aggregate costs of $14.0 million are

anticipated through FY 2008. The administration is exploring a number of funding alternatives for this expenditure. A portion is expected to come from the General Fund, and the remaining from other University resources. For FY 2005, a permanent budget allocation of $700,000 is provided to meet this need. Further adjustments will be made as necessary once final funding decisions have been made.

3. FTE DISTRIBUTION

The total salary budget for the Division is $3.6 million, which represents 80.7 percent of the total Development and Alumni Affairs budget. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

0.0

0.0

0.0

0.0

85.0

85.0

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Finance and Facilities Management SUMMARY DIVISION BUDGET

MISSION STATEMENT

he mission of the Finance and Facilities Management Division is to provide financial, administrative, and customer services that support and enhance the University's research, urban teaching and service mission; while performing all fiduciary and operational

responsibilities with the utmost integrity. Approximately 61.7 percent of the total Division budget is assigned to Facilities, Planning and Management (FP&M), which is responsible for maintenance and repair of the University’s 109 buildings and approximately 11.0 million square feet of space. FP&M also oversees all University construction projects, and its deferred maintenance. The remaining 38.3 percent of the budget is attributable to management of the University’s financial operations – including purchasing, financial accounting and reporting and oversight of the University’s investment and treasury functions, which includes total net assets of $775 million as of September 30, 2003.

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Budget




Fringe Benefits 486.0 247.6 (238.4) -49.1%

TOTAL SALARIES 20,357.2 20,421.2 64.0 0.3%


Non-Recurring 500.0 0.0 (500.0) -100.0%


Revenue (682.0) (682.0) 0.0 0.0%

Internal Transfers (4,067.2) (4,067.2) 0.0 0.0%



Technical Adjustments During FY 2004, budget adjustments resulted in a net increase of $285,100. Increases to the budget consist of compensation adjustments totaling $334,700. Funding for a 1.0 FTE position in the Property Office was restored in the amount of $29,700. As part of the FY 2004 budget process, a Voluntary Retirement Program was offered to eligible University employees. Estimated amounts of budgetary savings for the entire University were recorded in the Central Accounts Program Enhancement Fund pending final employee decisions which would not become known and effective until September, 2003. For the Division of Finance and Facilities Management, budgetary savings totaling $79,300 were realized from this program and the Division’s budget was reduced in FY 2004 to reflect this actual savings. Positions held by individuals who accepted the Voluntary Retirement Program were closed.

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1. EXPLANATION OF CHANGES (continued) Program Changes For FY 2004, program changes result in a net increase of $842,400. The budget is increased by $673,500 to fund additional costs related to the 5057 Woodward property (Maccabees building) which includes $302,700 for salaries and $370,800 for general expenses. Also, additional funding of $248,000 is provided for Banking Services. Funding totaling $96,200 is provided from Enhancement for Research Support for a purchasing position and an Accounting Manager position to handle the increased workload due to the increased research activity. An allocation of $70,000 is provided to fund a real estate officer position. Offsetting these increases is a permanent reduction of $245,300 for maintenance and custodial services due to an increase in contributions by the Fitness Center, Auxiliary Services, and the Bookstore. Non- Recurring The $300,000 non-recurring allocation for Risk Management is not continued in FY 2005, and the $200,000 allocation for Banking Services has been funded to base.



Budget


Facilities, Planning and Management 16,163.1 16,804.2 641.1 4.0%

Fiscal Operations 4,381.1 4,548.9 167.8 3.8%

Rentals and Leases 3,140.3 3,140.3 0.0 0.0%

Risk Management 1,631.1 1,335.7 (295.4) -18.1%

Purchasing 758.0 817.0 59.0 7.8%

Office of the Vice President 411.3 418.3 7.0 1.7%

Banking Services 243.0 291.0 48.0 19.8%


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3. FTE DISTRIBUTION

The total salary budget of the Division is $20.4 million, which represents 74.7 percent of the total Finance and Facilities Management budget. Total funded FTE staffing, as reported by the Division, is comprised of the following:

Projected FY 2005

Faculty

Graduate Assistants

Part-Time Faculty

Other Academic

Total Academic

Non-Academic

Total FTE

No. FTE

0.0

0.0

0.0

0.0

0.0

501.2

501.2

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FY 2004 Approved

Budget


Fringe Benefits 63,822.5 66,225.9 2,403.4 3.8%Utilities 24,094.8 22,643.3 (1,451.5) -6.0%Debt Service 7,722.3 7,812.3 90.0 1.2%Compensation Reserve 7,080.1 7,522.9 442.8 6.3%Deferred Maintenance 3,455.5 5,955.5 2,500.0 72.3%Research Administration Support 2,824.1 3,117.3 293.2 10.4%President's Research Enhancement Prog. 1,800.0 1,800.0 - 0.0%

ISP Debt Service 1,230.6 1,574.1 343.5 27.9%Professional Fees 1,116.8 929.8 (187.0) -16.7%Special Equipment Program - 560.0 560.0 n/aContingency Reserve 500.0 500.0 - 0.0%Omnibus Fees Commitments 4,889.9 114.2 (4,775.7) -97.7%Program Enhancement (1,500.0) - 1,500.0 -100.0%

Total Central Accounts 117,036.6 118,755.3 1,718.7 1.5%

Variance $ %



Central AccountsSUMMARY BUDGET

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Central Accounts SUMMARY DIVISION BUDGET

MISSION STATEMENT

his budget includes centrally funded and maintained accounts that support overall University programs and operations. The budgets that comprise the total Central Accounts include functional expenditures that impact the entire University or are budgeted and

managed by multiple units or at the University-wide level. Central Accounts represent approximately 26 percent of the total General Fund budget. Four accounts – Fringe Benefits, Utilities, Debt Service and Compensation Reserves – account for almost 90 percent of the total FY 2005 proposed budget.

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Budget





TOTAL SALARIES 0.0 0.0 0.0 0.0%

General Expenses 113,760.6 113,479.3 (281.3) -0.3%

Non-Recurring 3,300.0 5,300.0 2,000.0 60.6%


Revenue (3.0) (3.0) 0.0 0.0%




Technical Adjustments During FY 2004, amounts totaling $7,080,100 were transferred from the compensation reserve to University units to fund employee salary increases. Omnibus fee commitments were permanently transferred to Athletics in the amount of $97,600, to Student Activities in the amount of $450,000, and to ISP Debt Service in the amount of $343,500 in accordance with budget policy. Transfers from Enhancement for Research Support were made to Research Support and Sponsored Programs Administration in the amount of $61,800 and $49,100, respectively, to fund operational needs in those areas. These adjustments resulted in a total net reduction of $7,738,600 in the Central Accounts budgets. As a result of the voluntary retirement program the University generated salary and benefit savings of about $549,000 from University units.

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1. EXPLANATION OF CHANGES (continued) Program Changes For FY 2005, increases in the budget total $6,408,100 and include the following: • The Fringe Benefits budget will be increased by $2,403,400 to reflect (a) retirement, FICA

and Medicare costs resulting from anticipated compensation increases, (b) a projected 8.6 percent increase in health care costs and (c) fringe benefits on new positions funded to support building operations.

• The Compensation Reserve will be funded at $7,522,900 – reflecting increases specified

in collective bargaining agreements and proposed increases for non-represented personnel. Five collective bargaining groups have labor contracts that are currently under negotiation. Those groups account for less than 10 percent of total projected General Fund salaries budgeted for FY 2005.

• The Utilities budget will be reduced by $1,451,500 to reflect anticipated savings in rates

increased utilization of the 5057 Woodward property, and assumption of administrative cost totaling $521,200 by University auxiliary units.

• Debt Service is increased by $340,000 to fund costs for the bonds issued in 2003 for the

renovation of the 5057 Woodward building and the acquisition of property at 2727 Second Avenue. Debt Service is reduced by $250,000 to reflect the continued assumption of bond debt service by the Parking and Transportation auxiliary.

• Omnibus Fee Commitments is increased by $972,500 as a result of enrollment increases

and increases in omnibus fee rates. Omnibus Fee Commitments totaling $4,678,300 have been permanently transferred in equal amounts to the Office of the Provost and to Computing and Information Technology to support continuing needs in infrastructure maintenance and academic affairs for student computing and technology. A transfer of $179,000 is made to fund operating expenses and fringe benefits attributable to the Dean of Students function.

• Research Administration Support centrally funded includes the Research Facilities Fund

and Enhancement for Research Support – both funded from a distribution of Indirect Cost Recovery. The Research Facilities Fund and the Enhancement for Research Support budgets increased by $253,800 and $271,900, respectively, as a result of the $3.6 million projected increase in Indirect Cost Recovery. An allocation of $121,600 is made from the Enhancement for Research Support budget to create 2.0 FTE positions in Finance and Facilities.

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1. EXPLANATION OF CHANGES (continued) • As a result of the appointment of new external auditors beginning with FY 2004, Internal

Audit Fees, which are part of Professional Fees, is reduced by $187,000. • The Special Equipment Fund is restored with an allocation $560,000 for research.

• The Program Enhancements budget is adjusted by $951,000 to reflect unrealized savings

from the 2003 Voluntary Retirement Program.

Non-Recurring For FY 2005 an allocation of $3.5 million has been provided to the Deferred Maintenance budget – an increase of $2.5 million over FY 2004 – and $1.8 million has been set aside for the President’s Research Enhancement Program.

2. OTHER MATTERS

Omnibus Fees The Omnibus Fee Commitments budget holds unallocated balances from student omnibus fees. An accounting for these funds by purpose is included on page 102 of the Budget book. For FY 2005, omnibus fee revenues total $10.6 million – an increase of $972,500 (10.1 percent) over FY 2004 amounts. Of this amount, $2.5 million is set aside for financial aid, Fitness Center operations, and General Fund support. The remaining $8.1 million is available for allocation as follows:

FY 2004

FY 2005

Difference

Student Computing and Technology 4,973,800 5,654,600 680,800

Athletics 1,681,600 1,681,600 0

Student Activities 450,000 450,000 0

Dean of Students Operations 0 178,100 178,100

Unallocated 0 113,700 113,700

TOTAL 7,105,400 8,078,000 972,600

All amounts have been transferred to their respective budgets.

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2. OTHER MATTERS (continued) ISP Debt Service In FY 2002, a cash pool loan in the amount of $13 million was approved by the Board of Governors to fund the completion of the implementation of the Integrated Systems Project. The term of repayment of that loan is ten years with annual debt service of $1.2 million. As part of the FY 2003 budget, a portion of the technology omnibus fee allocation - $343,500 – was earmarked for debt service on the cash pool loan, bringing total repayment to $1,574,100 per year. On September 30, 2003, the ISP cash pool loan balance was $8.6 million. At a rate of payment of $1.5 million per year, this balance – not considering further advances – will be repaid in five and a half years or by 2010.

3. TOTAL ALLOCATION The summary budget is comprised of the following:

Variance

FY 2004 Approved

Budget


Fringe Benefits 63,413.5 65,816.9 2,403.4 3.8%

Utilities 23,390.9 21,939.4 (1,451.5) -6.2%

Debt Service 7,722.3 7,812.3 90.0 1.2%

Compensation Reserve 7,080.1 7,522.9 442.8 6.3%

Deferred Maintenance 3,455.5 5,955.5 2,500.0 72.3%

Research Facilities Fund 2,702.5 2,956.3 253.8 9.4%

President Research Enhancement Program 1,800.0 1,800.0 0.0 0.0%

ISP Debt Service 1,230.6 1,574.1 343.5 27.9%

Professional Legal Fees 1,116.8 929.8 (187.0) -16.7%

Research Equipment and Facilities 703.9 703.9 0.0 0.0%

Special Equipment Programs 0.0 560.0 560.0 100.0%

Contingency Reserve 500.0 500.0 0.0 0.0%

Accrued Compensated Absences 288.9 288.9 0.0 0.0%

Enhancement of Research Support Programs 121.6 161.0 39.4 32.4%

Employee Assistance Program 120.1 120.1 0.0 0.0%

Omnibus Fee Commitments 4,889.9 114.2 (4,775.7) -97.7%

Program Enhancement (1,500.0) 0.0 1,500.0 -100.0%

Total Central Accounts 117,036.6 118,755.3 1,718.7 1.5%

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BUDGET POLICIES AND PRACTICES The General Fund budget reflects allocations that have been made in accordance with University policy or standard budget practices that have been adopted by the University. Those policies and practices are summarized below. 1. School/College Funding

Current budget methodology provides that each school or college is allocated a base budget that is intended to cover a reasonable portion of its budgetary needs for faculty and staff salaries, instructional expenditures, travel and operating supplies. For FY 2005, the base budget has been set at the same amount of funding as that approved for FY 2004, adjusted for salary increases and other revisions made during the fiscal year or as part of FY 2005 budget development, or as determined by the Provost. Included in the FY 2005 budget is an academic program enhancement of $1.0 million – funded in the Office of the Provost. The Provost will determine how these funds are allocated to the individual schools and colleges and make appropriate transfers during the course of the fiscal year. Four schools – College of Business Administration, College of Engineering, College of Nursing and the Eugene Applebaum College of Pharmacy and Health Sciences – assess a differential tuition rate for students enrolled in their graduate programs. For FY 2005, 75% of the total tuition revenue generated from this differential is reinvested in each respective school to strengthen its programs. The total increase for FY 2005 is $919,000 – and the cumulative investment since differential tuition was initiated in FY 2004 totals $1,983,700. Financial aid awards earmarked for students in the Law School and the School of Medicine – totaling $1.5 million and $3.0 million respectively – have been budgeted directly in each school to reflect total resources available to support the program’s mission. University policy requires that all financial aid is disbursed through the Office of Scholarships and Financial Aid (OSFA). The transfer of these budget amounts does not change that University policy and OSFA continues to be responsible for ensuring that financial aid is awarded and disbursed in accordance with established guidelines.

2. Spring/Summer Program Funding

Wayne State University’s spring/summer program generates approximately 13 percent of the University’s total annual enrollment. Most of the University’s academic units are funded directly for operations of the Fall and Winter terms. (Exceptions to this practice are certain 12-month programs – Medicine, Pharmacy and Health Sciences, and some portions of Social Work – which are funded for a three-term academic year. The Law School, while a 9-month program, is also funded for a three-term academic year.)

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BUDGET POLICIES AND PRACTICES

Spring/Summer program funding is provided through the Metropolitan Programs and Summer School (Summer School) budget in the Office of the Provost where part-time faculty funding is provided for those units whose academic year budgets reflect only the Fall and Winter terms. The Spring/Summer program is a self-funded entity. Revenues generated by enrollment in the spring/summer terms are used first to cover the costs of operating the program. Those costs include the cost of faculty hired to teach spring/summer courses from the Summer School budget and the costs of administering the program. Next, a fixed amount is set aside from Spring/Summer revenues to cover the cost of year-round operations of the University. That amount, which is increased annually by the applicable inflation rate, totals $12,143,300 for FY 2005. Any excess revenues that remain after covering these commitments are then distributed as follows: (a) 60 percent is distributed to academic units based on relative enrollment generated during the Spring/Summer term, (b) 15 percent is directed to the University’s Research Stimulation Fund, (c) 15 percent is allocated to the Office of the Provost Strategic Investment Fund, and (d) 10 percent is allocated to the University’s central administration for use in funding programs that have University-wide impact. Schools receiving differential tuition returns will not receive Spring/Summer incentives for the graduate enrollment. Targeted AYES enrollment for the FY 2005 Spring/Summer program is 3,150.

3. Distribution of Indirect Cost Recovery Revenues The University receives Indirect Cost Recovery (ICR) revenue from many of its research grants and shares those funds with the principal investigators, academic units, and departments. The policy for the distribution of ICR as prescribed in Executive Order 86-2 was revised October 1, 2003. The revisions include a change in the percentage allocations and new allocations to meet the needs for facilities maintenance in research buildings and to support operating costs within the Research Division. Distributions of ICR are revised to reflect the following rates:

Distribution Executive Order 86-2 New Policy

Department 15.0% 11.5%

Research Stimulation 10.0% 10.0%

School/College 10.0% 7.5%

Principal Investigator 8.5% 7.0%

Research Facilities Fund - 7.0%

Vice President Operations - 3.0%

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These allocations total 46.0 percent. Unallocated ICR is used to support general fund expenses that support research activities – such as utilities, depreciation and administrative operations. An additional 7.5 percent of ICR revenues in excess of $5.2 million are set aside each year for Enhancement for Research Support, a separate budget in Central Accounts from which administrative expenditures incurred in support of the University’s research activities are funded. These expenditures are theoretically funded contingent upon the University’s ability to sustain its current level of research funding and subject to reduction in the event of a substantial decline in that research funding. The required distribution to the principal investigators, the school/college and the applicable department is recorded in the Research Incentives budget in the Division of Research. The Research Stimulation Fund allocation is recorded in a separate budget in the Division of Research specifically designated for that purpose. The Research Facilities Fund and Enhancement for Research Support are recorded in Central Accounts. Federal regulations require Wayne State University to spend an amount equivalent to the portion of ICR revenues based on faculty and equipment depreciation on the purchase, repair, acquisition, renovation or improvement of research facilities and equipment. These expenditures can either be made in the year in which the revenues are received, or within a five-year period after the fiscal year in which the revenues are received. The estimated portion of the University’s current ICR rate dedicated to research facility and equipment depreciation is 10.3 percent, and funding for research equipment and facilities will be taken from the general fund portion of ICR revenue. External funds generated by academic support units such as Libraries and Student Development and Campus Life will be recognized by a 13.0 percent reinvestment in those units.

4. Omnibus Fee Commitments

Omnibus fees, assessed as part of tuition and fees, are earmarked for specific purposes. After a recurring set aside of $1.2 million for financial aid and other purposes, omnibus fees are earmarked for three purposes – student computing and technology, athletics enhancement, and student activities (which includes the Fitness Center). For FY 2005, omnibus fee commitments are increased by $972,500. Beginning in FY 2004, omnibus fee revenues set aside for student computing and technology will be funded 50 percent in Computing and Information Technology (C&IT) to support infrastructure needs and 50 percent in the Office of the Provost for distribution to schools and colleges. The total amount allocated for FY 2005 is $4,678,253, of which $2,339,127 will be added to the C&IT budget and the same amount to the Office of the Provost budget.

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Athletics funding totaling $1.7 million is set aside on a recurring basis to fund coaching salary enhancements, operations expenditures, and financial aid associated with the Athletics enhancement initiative. These amounts are built into the respective budgets.

A recurring allocation of $375,000 for Libraries Acquisition is made to fund expanded collections in the University’s various libraries. An additional allocation of $150,000 has been built into the Libraries budget to fund the implementation and maintenance of the DALNET Im@gine catalog system. During FY 2000, the Contact Management System, a key initiative of the Enrollment Management Strategy, was approved for funding at a total cost of $326,600. Of that amount, $107,800 was funded recurringly from the technology allocation of the Omnibus Fee. The remaining $218,800 was funded, on a recurring basis, from other General Fund resources. A recurring allocation of $858,100 from Omnibus Fees has been funded to the Fitness Center budget, and a base budget allocation of $450,000 has been funded to the Student Activities budget. Omnibus fee commitments available for distribution in FY 2005 total $8.1 million. The distribution of this amount is shown in the following schedule:

Description

FY 2004 Unallocated

Funds

Prior Year Transfers to Base

FY 2005 Transfers

Total

Allocation

Student Computing & Technology $4,340,976 $632,800 $680,777 $5,654,553

Athletics Enhancement - $1,681,618 - $1,681,618

Dean of Students - - $178,100

Strategic Plan Initiatives $113,662

Student Activities – Student Council - $450,000 - $450,000

Subtotal $4,340,976 $3,622,518 $680,777 $8,077,933

Financial Aid $1,220,000

Student Activities – Fitness Center - - - $858,100

University Operations * $455,100

Subtotal $2,533,200 TOTAL $4,340,976 $3,622,518 $680,777 $10,611,133

* Amount generated in FY 2004 from elimination of 12 credit hour cap on omnibus fees for undergraduate students as a budget reduction enhancement strategy.

Allocations from the Omnibus Fee revenues are contingent upon the realization of the budgeted revenue from the Omnibus Fees. Any surplus revenues are subject to allocation at the discretion of the President.

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Except as indicated above, or as approved by the President or his designee, all allocations from the Omnibus Fee Commitment fund code should be non-recurring.

5. Central Accounts

A number of the University’s commitments are budgeted as Central Accounts and managed by the central administration on a regular basis. These accounts include commitments for compensation and benefits to faculty and staff, utilities, expenditures, and physical plant maintenance and repair. The compensation reserve is budgeted based on the number of faculty and staff employed by the University and anticipated increases for those employees during the coming year. Depending on the bargaining unit, these compensation increases are typically paid in October or November. Some are retroactive to August. For FY 2005, four bargaining units are currently involved in contract renegotiation. Total annual salary represented by those units comprises 9.6 percent of the total General Fund salary budget for the University. Fringe benefits are a function of the projected salary level for the University (which requires an increase in the budget for additional FICA, Medicare, and retirement benefits) and expected increases in contract rates for major benefit providers. For FY 2005, contract rates for major health care providers will likely increase by 8.6 percent.

Utilities are projected based on anticipated consumption and rate changes.

6. Non-recurring Allocations

The proposed budget includes $5.7 million in funding – on a one-time basis only – for certain program and operating expenses. These non-recurring allocations are made from anticipated budget savings and surpluses that might be generated in FY 2004. They are provided to fund certain non-recurring needs or specific program/operating needs that cannot be met on a continuing basis in the current budget. FY 2005 non-recurring allocations are described below (in thousands of dollars):

Description Division Amount

Deferred Maintenance Central Accounts $3,500.0

President’s Research Enhancement Program Central Accounts 1,800.0

Advertising Executive Office of the President 400.0

Total Non-recurring Allocations $5,700.0

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BUDGET MANAGEMENT PROCEDURES

Responsibility for overall management of the University’s General Fund budget lies with the Assistant Vice President of the Office of University Budget. That responsibility includes review and analysis of major expenditures on an ongoing basis, reallocation of budget savings that may become available, periodic reporting on budget performance, and ensuring adherence to budget policies and procedures. Each Dean or Vice President is responsible for the budget resources allocated to his/her respective unit. That includes utilization of budget resources in accordance with budget policy, and directing those resources to programmatic needs as approved by the Executive Administration. Deans and Vice Presidents may use budget savings to meet certain one-time needs after ensuring that all program goals and unit operating requirements have been satisfactorily met. Unit budget management responsibility also includes ensuring that annual expenditures do not exceed budgeted amounts. The Provost and Senior Vice President for Academic Affairs ensures that each Dean establishes good practices within his/her own school or college to ensure compliance with University policies, responsible fiscal management, and accomplishment of program objectives with available resources. The following Budget Management Procedures identify specific authorities for utilization, transfer, and reallocation of budget resources throughout the fiscal year. Budget Transfers Throughout the fiscal year, operating units may find it necessary to reallocate its budgets to meet ongoing operating needs. These transfers may be recurring or non-recurring. Each Dean or Vice President should exercise discretion in making such transfers, as they impact available funding for program and operating needs during the fiscal year, and in some cases, beyond. Any transfer of funds that involves the creation of a new position, reduction in faculty funding or the movement of existing positions outside of the division must be approved by the President or his designee. The following guidelines cover required approvals to make these transfers. 1. The Dean or respective Vice President may approve transfers across major account codes

within the same budgeted fund code. In making that approval, the Dean or Vice President must ensure that all remaining commitments can be met with existing resources and that sufficient funding exists within the account code to make the transfer.

2. Transfers across fund codes within a division may be made with the explicit approval of the

division Vice President. Transfers across fund codes within a school/college may be made with the explicit approval of the Dean. Transfers between schools and colleges require the approval of the Provost and Senior Vice President for Academic Affairs. In making these transfers, a proper review must be made to ensure that all budgeted commitments can be met after the transfer has been made, that available resources exist within the school/college or

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division to make the transfer, and that all program commitments can be met with remaining resources. This approval authority can not be delegated.

3. Transfers between divisions require approval by the President or his/her designee. Such

transfers typically impact the total amount of resources available to the division, and generally involve a change in program or change in program responsibility. This approval authority can not be delegated.

4. Transfers across academic units require explicit approval by the Provost. Position Control The Budget Office is responsible for position control – that is, ensuring that all University positions are properly funded and that total salary commitments are within available budget funding. The Human Resources department is responsible for setting policy on the creation of new positions, reclassification of existing positions, and any other changes made to existing positions. Budget Management Procedures, as specified here, apply only to unit funding for staff, and do not change the policies and procedures set forth by Human Resources for modifying or creating new positions. 1. All new positions require approval by the President or his/her designee.

2. Except as specified in the authorized recruitment roster issued by the Provost and Senior Vice

President for Academic Affairs, recruitment for any tenure-track or tenured faculty position requires prior authorization from the Provost and Senior Vice President for Academic Affairs.

3. Non-academic positions are funded in accordance with the Hay Funding Policy, which

requires that all positions be funded at the established position job rate. Once a position is funded at job rate, it must remain at least at that funding level unless the position is reclassified by Classification and Compensation. The Dean or Vice President may use salary savings generated by vacant non-academic positions at his/her discretion on a one-time basis during the fiscal year.

4. Each school/college or division is responsible for the routine, periodic review and

reconciliation of their position rosters – faculty, other academic and non-academic – to ensure (a) proper funding and classification of each position assigned to the unit, and (b) agreement of Human Resource System salary commitments and corresponding funding levels reflected in the Financial Management System. The Office of University Budget provides instructions for this reconciliation and review process. Rosters should be reconciled on a monthly basis and specifically after salary increases have been made. Failure to perform routine and timely reconciliations will result in curtailment of new position creation for the unit.

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Unspent Balances Units are allowed to retain a portion of their unspent balances to provide additional flexibility in managing their resources and to aid in meeting some of their long-term funding needs. 1. Any balance of unexpended and unencumbered funds that remains in a budgeted unit at the

end of the fiscal year will be subject to recapture of 25 percent of the balance. The remaining 75 percent will be retained in that school/college or division in a separate account and will be available to the respective Dean or Vice President for expenditures in subsequent fiscal years. These carryforward balances will not be subject to any further recapture after the initial year of assessment except if transferred from the separate carryforward account into an operating account.

2. Total carryforwards under these provisions shall be limited to the greater of 7.5 percent of the

revised budget (e.g., total budgeted resources available to the unit in any given year plus any additional funding allocated) in each unit or $35,000. Carryforward balances will be determined for each school/college or division using aggregate year-end balances and the carryforward account will be recorded in the Vice President’s or Dean’s office.

3. Funds will be carried forward in full only under certain conditions such as:

• Budget allocations reflecting unearned revenue will be carried forward at 100 percent.

• Budget allocations made within 120 days from the end of the fiscal year will be carried forward at 100 percent. These include transfers made from reallocation of year-end savings, contingency reserve, and distribution of spring/summer revenue.

• As specified by University policy, the principal investigator will retain unexpended and

unencumbered Indirect Cost Recovery revenues that have been distributed in accordance with University policy with no limitation on carryforward.

• Certain allocations within the budget will be carryforward as approved either by

University policy or contractual agreement. These include allocations for research awards and minority/women summer grants.

• Funds allocated for a specific purpose that require more than one fiscal year but not more

than three fiscal years to complete.

All other balances will be carried forward at 75 percent.

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Budget Administration 1. The accompanying budgets are based upon salaries and collective bargaining agreements in

effect in June 2004. Additional allocations will be made as necessary to reflect future union contracts or administration compensation policies.

2. The President is authorized to reallocate and expend tuition, fee and other revenues that may

be received in excess of the amounts included in this budget or expenditure savings. 3. The President is authorized to reallocate and expend budget savings that may occur during

the year in central accounts, in other accounts where new program start-up is not completed during the year, and in other appropriate areas.

4. The Assistant Vice President for the Office of University Budget will provide to the President

and the Provost a quarterly summary of budget savings and expenditures made in accordance with the President’s direction. The Assistant Vice President for the Office of University Budget will also provide an annual report to the President and the Provost that summarize budget performance in each division.

5. It is the goal of the University to allocate at least 2.0 percent of the Current Replacement

Value of University buildings annually for repair and maintenance expenses. The President is authorized to reallocate budget savings and excess revenues identified during the year to achieve this target.

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Documents

Budget Book 2005 - Office of University Budget