University Budget Advisory Committee UBAC

1
University Budget Advisory Committee (UBAC)

• An update

2
Committee members

• David Doyon
• Euclid Dupuis
• Steve Owens
• Betsy Gunzelmann
• Gretchen Ulrich
• Kris Bristol (chair)

• Bill McGarry, CFO
• Darrell Krook
• Brad Poznanski
• Pam Hogan

3
Cost centers

• Purpose
• provide a framework for evaluating decisions such
  as adoption of new programs, evaluating the
  impact of decisions made, and for measuring a
  cost center against itself
• Ad hoc committee members
• Linda Goyette (Business Office)
• Ellen Griffin (School of Pro. And Cont. Studies)
• Chuck Hotchkiss (SCED)
• Lara Quiroga (SEd)

4
Cost centers

• Overview
• Define cost centers on a macro basis
• Drill-down to smaller units may take place in the
  future
• Decide on a model for allocation of revenue and
  direct and indirect expenses to each cost center
• Apply the model to FY07 figures to establish a
  baseline

5
Cost centers

• Culinary
• BASHA (until it is decided where it will be
  housed)
• International programs (Malaysia, Study Abroad)
• SNHU Online
• Institutional Advancement
• Residence Life
• Dining Services
• Conference Services

• School of Business
• School of Community Economic Development
• School of Education
• School of Liberal Arts
• Laconia Center
• Manchester Center
• Maine Center
• Nashua Center
• Salem Center
• Seacoast Center

6
Overhead items

• Public Safety
• Athletics
• Academic support services
• Marketing and communications
• Technology
• Administrative offices
• Financial aid
• Depreciation

7
Deliberate omissions

• Book store
• NH Writers Project
• World Affairs Council of NH

8
Models considered

• Sales model
• Major model
• Production model based on credit hours
  delivered (by course, not by student)

9
Allocation

• Tuition revenue allocated to academic centers
  based on credit hours delivered
• Example
• Total tuition revenue 74 million
• If SCED produces 10 of all credit hours
  produced, then 7.4 million of tuition revenue
  would be allocated to SCED
• Non-tuition revenue allocated to generating cost
  center

10
Allocation of indirect costs

• Most administrative offices, computing resources,
  marketing and communications
• Based on of total revenue
• Presidents Office
• Based on of total direct expense
• VPAAs Office
• Based on of total direct expense of academic
  centers

11
Allocation of indirect expense

• Fringe benefits
• Based on of total salaries for eligible
  employees
• Library
• Based on of credit hours delivered
• Depreciation
• Based on of total revenue allocated to center
• Student Life - TBD

12
Other updates

• Enrollment targets were met
• Comparison to 20 peer institutions
• SNHUs surplus short of the average (4.5 vs.
  6-7)
• Next meeting Dec 5