Budget Control Officers Meeting

October 31, 2013ATC Auditorium

3:30 p.m. – 5:00 p.m.

Agenda

1. Welcome & Updates – President Ender 2. 2012-13 Audit/Budget Results – Jim Peterson3. 2014-15 Budget Timeline & Online Forms – Jim Peterson4. 2013-14 Mid Year & Beyond – Lisa Freiburger5. IT Projects & Budgets – Darcy Swope6. Department Planning Update – Donna Kragt7. GRCC ePrint – Danelle Sedore8. Globally Harmonized System – Mansfield Matthewson9. Campus Construction Update – Vicki Janowiak10.Questions & Wrap Up

2012-13 Audit/Budget Results

• Unmodified or “clean” audit opinion• No management letter comments (4th year in a row!)• Summary of General Fund:

* Includes $1.5 million transfer to Plant for future facility needs.

Revenues $105,451,718

Expenses & Transfers* ($105,328,852)

Add to Net Position $122,86

Net Position at 6/30/13 $11,121,515

Net Position/Revenues (BOT target = 10% - 15%) 10.55%

2012-13 Audit/Budget Results

Revenue Variances: Budget Actual Variance

Tuition/Fees $57,812,301 $57,074,702 ($737,599)

Prop Taxes $28,236,893 $28,033,947 ($202,946)

State Aid $17,570,926 $18,639,437 $1,068,511

Other $2,111,000 $1,703,632 ($407,368)

Total $105,731,120 $105,451,718 ($279,402)

2012-13 Audit/Budget Results

BCO Controllable Expense Variances:

Overall, 98.2% of the authorized GF budget was utilized.

Budget Actual Variance

Students $1,414,878 $1,022,129 $392,749

Contract Svcs $4,156,099 $3,678,204 $477,895

Supplies/Repair $4,924,729 $4,674,744 $249,985

Rentals $757,219 $564,723 $192,496

Other $1,091,088 $984,600 $106,488

Equipment $354,472 $319,113 $35,359

Total $12,698,485 $11,243,513 $1,454,972

2012-13 Audit/Budget Results

BCO Controllable Expense Variances:

*includes 9 overspent by less than $1,000Continued Good Work by All of You!

Thanks

Fiscal Year Total Cost Centers # Overspent % Overspent

2012-13 120 15* 12.5%

2011-12 122 19 15.6%

2010-11 118 19 16.1%

2009-10 115 30 26.1%

2008-09 102 45 44.1%

2014-15 Budget Development

• 2014-15 Budget Timeline – Key BCO dates:– 12/3/13: 2013-14 mid year requests due via on-line

submission**– 1/23/14: IT project requests due on-line (Darcy to address)– 1/24/14: Department planning, budgeting & space

planning overview– 2/21/14: 2014-14 department plans, budget requests and

space requests due via on-line submission

**Mid year criteria will be the same as in 2012-13. On-line forms are now available in PeopleSoft.

2013-14 Mid Year & BeyondLisa Freiburger

2013-14 Mid Year & Beyond

• 2013-14 Balanced budget adopted by BOT in June– Total Revenues $106,742,766– Total Expenditures & Transfers $106,742,766– Change in Net Assets (maintains 10%) $0

• Budget assumptions include:1. Decreased enrollment – projected 3% decline2. Flat property tax revenue3. 1.5% increase in state funding 4. 3.5% increase in health caps, MPSERS rate increase from

24.32% to 24.79%, and $750,000 for estimated ACA cost5. Approximately $1.6 million in new cost savings (see next

slide)

2013-14 Mid Year & Beyond

• Cost savings (cont’d):– Reduction in the GF allocation for deferred maintenance

and IT infrastructure - $1,000,000– Reduction in bad debt expense, primarily Title IV returns -

$225,000– Elimination of GF subsidy for Training Solutions - $115,000– Reduction in debt service due to bond refunding - $81,000– Reduced operating expense at the Ottawa M-Tec due to

outsourcing by the OAISD - $80,000– Closure of the West Side LC - $67,000

Total reductions for 2013-14 = $1,568,000

2013-14 Mid Year & Beyond

• Concerns for mid year and beyond:– Enrollment – Late summer 2013 and Fall 2013 enrollment

is running 4.8% below budget. The annualized financial net financial impact is approximately $1 million.

– Pressure on future tuition increases– Ultimate impact of the ACA when fully implemented

• Cost containment/new revenue efforts in progress:– Third-party steam purchase– Electronic vendor payments– On-line student billing– Work of the Budget Review Team

IT Projects and BudgetsDarcy Swope

Project Funding and Resources

Prevents: Funds expended*, no resources available to implement

*Software, Contracts, Hardware, Maintenance agreements

Resources(People Power)

Budget $$$Expenses

Match

Estimate before Budget

Goal: Provide estimate of cost and resources before

budgets are submitted by eBCO

Optimistic Calendar

JanuaryS M T W T F S

1 2 3 45 6 7 8 9 10 11

12 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31

FebruaryS M T W T F S

12 3 4 5 6 7 89 10 11 12 13 14 15

16 17 18 19 20 21 2223 24 25 26 27 28

MarchS M T W T F S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

Feb 21

2/25 – Projects Prioritized

Budget requests due to supervisorFeb 25

Feb 28 2/28 – Prioritized Project List sent to eBCOs

Feb 17 Project/time estimates completed and returned to customer

Jan 24 Project requests due to IT (via web-form)

Department Planning UpdateDonna Kragt

GRCC ePrintDanelle Sedore

http://cms.grcc.edu/grcceprint

Globally Harmonized System of Classification

Mansfield Matthewson

Globally Harmonized System of Classification and Labeling of Chemicals (GHS)

The OSHA Hazard Communication Standard (HCS) is now aligned with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). This update to the Hazard Communication Standard (HCS) provides a common and coherent approach to classifying chemicals and communicating hazard information on labels and safety data sheets. The revised MIOSHA Part 42, 92, & 430 Hazard Communication standard will improve the quality and consistency of hazard information in the workplace, making it safer for workers by providing easily understandable information on appropriate handling and safe use of hazardous chemicals.

HCS Mandatory Bb Training• Three (3) training segment modules (10 to 15 minutes each):

Module 1: Overview and Classification Module 2: Labels Module 3: Safety Data Sheets (SDSs) (formerly MSDS)

• Post test (approximately 20 questions, 80 % accuracy required)

• Must be completed by all employees by Friday, November 22, 2013.

Campus Construction UpdateVicki Janowiak

Construction Update

Winter 2014 ATC• SICE and CIS offices, computer classrooms,

computer lab, classrooms• Auditorium• FSU offices • SWD Associate Deans offices

Spring/Summer 2014 ATC • SICE kitchens, classrooms, Heritage,

Banquet rooms, Art & Bev’s• Machine Tool/HVAC wing, plastics labs • FSU computer classrooms• Atrium & skylight

Construction Update

Summer 2014Cook Hall – Phase 2• Floors 2 & 3 – Complete demo an reno• Elevators & windows

Main Building – Phase 2• HVAC, fire suppression, lighting, windows• 4th floor, 1st floor, G2 and classrooms on G1• Elevators

Sneden• HVAC, windows/exterior, elevator, lighting

LRC• HVAC, Windows/Exterior, Fire Suppression,

Elevators, Lighting

Questions?

Thanks for Attending!