MONEY MATTERS:

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• MONEY MATTERS
• BUSINESS ACUMEN
• Presented by
• Dr. Marie V. McDemmond, President
• Norfolk State University

Copying or use of materials without permission of
Dr. McDemmond is prohibited
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MY COLLEGE FY__ Integrated Operating Budget by
Function
SOURCE/ PUB FIN. SPEC AUX PURPOSE
INSTR. RESRCH SERV. AID STU. SVCS ENTRP. TOTAL
STATE FUNDS APPRO. 10,000 1,000 150 200 0 850 12,
200 SPECIALS 250 0 0 500 0 0 750 GRANTS/CONTRACT
S 0 150 0 0 0 0 150 FEDERAL FUNDS GRANTS/CONTRAC
TS 0 3,500 0 0 0 0 3,500 FINANCIAL
AID 0 0 0 2,000 0 0 2,000 STUDENT
FEES 1,000 600 100 30 400 5,000 7,130 GIFTS/GRANTS
/ 100 300 200 50 0 0 650 CONTRACTS SALES/SERVIC
ES 0 0 0 0 0 4,500 4,500 OTHER 100 60 20 100 60 0
340 TOTAL 11,450 5,610 470 2,880 460 10,350 31,22
0 In thousands
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TYPES OF BUDGETS (generally two types)

• OPERATING (MAINTENANCE) a plan, including
  unrestricted and restricted revenues and
  expenditures, that details how monies will be
  spent for current operations.
• CAPITAL a plan that details how monies are to
  be spent for a fixed asset or addition to a fixed
  asset such as land, major renovations or repairs
  (usually one-time commitments). May also be
  called capital outlay budget. The capital budget
  can cover more that a one-year period of time.

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FORMULA BUDGETING
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Strategic Budgeting for the Planning Process
Environmental Scan (Analysis Update)

• Mission
• Internal Pressures
• -Socio-Political,
• Economic, Educational,
• Technological Trends

• Institutional Goals
• Possible Directions (/-)
• -Negotiated Objectives

Analysis of Options

• Multi-Year Focus
• Changes in Priorities
• -Match Resources with
• Priorities

Programmatic Financial Plans
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RESPONSIBILITY CENTER BUDGETING
Every Tub on Its Own Bottom Budgeting
FOUR KEY PRINCIPLES

• Responsibility Centers are responsible for the
  total costs of their operations.
• Resources and authority are aligned with
  responsibilities for delivering programs.
• Responsibility Centers correspond with the
  organizational structure of the institution.
• Integration of responsibility and authority
  balances program objectives with available
  resources.

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