Campus Resources and Planning Committee
Monday, September 21, 2009
Attended By: Pete Wyckoff, Jacquie Johnson, Kathy Julik-Heine, Sydney Sweep, Bryan
Herrmann, LeAnn Dean, Sarah Haugen, Maddie Maxiener, Dave Swenson, Bart
Finzel, Mark Privratsky, Cheryl Contant, Lowell Rasmussen, Brook Miller,
Colleen Miller, Carol Marxen, Sarah Mattson, Sandy Olson-Loy
1. The meeting commenced at 3:30pm.
2. Minutes from September 14, 2009 approved by committee.
3. Pete Wyckoff (chair) introduced the speakers for the meeting, Colleen Miller and Lowell Rasmussen, who came to provide a “Period 13” end of FY2009 budget report and then respond to any questions from the committee. Rasmussen stated that he felt the goal of the presentation should be for members of the committee to leave with confidence that we now can verify the budget status. C. Miller then proceeded to guide the committee through a number of handouts, reviewing the end of the year budget for the University of Minnesota, Morris (UMM). She began by reviewing the fund balances by Dept IDs. She explained that the University System now has a threshold for deficits after which a TIP charge penalty is incurred for any budget line that ends over $15,000 in the red. This is a measure taken to ensure groups are not spending money that the university does not have. C. Miller explained that the difference between cash-based budgeting and accrual budgeting is the time when expenditures and revenues are reported. She showed how UMM ended FY09 on a cash basis. She then reviewed and explained what she referred to as the “top page” which provides a 1 pages summary of final budget numbers by category for FY2008 and FY2009 (both budgeted and actual revenues and expenses), as well as budgeted income and expenses for FY2010. Rasmussen then noted that this format was going to be the standard way that UMM will report and summarize its budget going forward. C. Miller continued by explaining that the top page reports earned revenues, expenditures, cost allocation chargers and non-operating revenues/expenditures. She pointed out the O & M (state allocation) to UMM, and noted the decrease from FY2009 to FY2010. C. Miller explained that the key to having a balanced budget is not to end the year in deficit. From this, C. Miller proceeded to present the UMM preliminary budget for FY10 and noted that quarterly reports on the budget will be made as UMM moves forward. Wyckoff suggested that C. Miller and Rasmussen return the following week so that committee members may have a chance to digest the information presented and then ask questions.
Jacquie Johnson commented on the budget reconciliation that has occurred over the past year and the need to promote a culture of accountability in the expectation of accounts. She explained that there has not always been the information available that we have now, and that though we’ve come a long way, we still have a lot to do.
Brook Miller asked if the lack of a culture of accountability was in any way due to the methods of cash vs. accrual accounting. C. Miller responded by saying that with cash basis, there is more opportunity to make it look like you’ve had a better year than you actually had, but all publications must be on an accrual basis. B. Miller then asked if we have found cash based accounting to be one of our budgeting problems and C. Miller said responded that we hadn’t. Bart Finzel then asked if the historical numbers in the accounts receivable were in any way significant. Dave Swenson asked about the carryover that is in excess of budgeted carryover and in combination with C. Miller’s response, Johnson commented that most institutions do not allow for carryovers. Mark Privratsky asked if some groups lay claim to end of the year carryover in fear that it will be taken away and both Swenson and C. Miller responded that this was the case.
4. At this point in the meeting, the subject turned to Jacque Johnson who spoke on the role of Campus Resources and Planning (CRPC) and new important work for CRPC. She said that Cheryl Contant and herself attended a meeting with Vice President Robert Jones on September 17, 2009, where they discussed student-faculty ratios and the need for UMM to adopt an Academic Staffing Plan by the end of fall semester 2009. She discussed the possibility that CRPC would help with that plan as well as a 5-year Financial Plan and an Enrollment Plan. All three plans are due to VP Jones by the end of the current semester. She also talked about the need to revisit some of the goals in the strategic plan, such as the achievement of 2100 enrollment by 2013.
5. The meeting adjourned at 5pm.