budget, balance, & the ripple effects of executive decisions
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Budget, Balance, & the Ripple Effects of Executive Decisions. Presented to Rhode Island Women in Higher Education Fifth Annual Conference April 20, 2007 Presented By Ivy Locke Vice President for Administration and Finance Rhode Island College. - PowerPoint PPT PresentationTRANSCRIPT
Budget, Balance, & the Ripple Effects of Executive Decisions
Presented to Rhode Island Women in Higher Education
Fifth Annual Conference
April 20, 2007
Presented By Ivy LockeVice President for Administration and Finance
Rhode Island College
Budget, Balance, & the Ripple Effects of Executive Decisions
• What is a Budget?• Global Budgetary Impact• Institutional Budget Practices • Budget Software (Integrated Databases)• Budget Phobias• Budget Basics (THE LEVERS)• Budget, Budget Who Responsible for the Budget?
AGENDA FOR RIWHE
TABLE TOP DISCUSSION
Page 2
Budget, Balance, & the Ripple Effects of Executive Decisions
• What is a Budget?– A financial guide or plan– Funding to achieve an approved strategy– A reasonable forecast– Feedback: A map of your progress– A communication tool to monitor adherence to policies
and procedures– Your best friend– Other
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Budget, Balance, & the Ripple Effects of Executive Decisions
• Global Budgetary Impact (Who Cares?)– Budgeting by Unit– Budgeting by Department– Budgeting by Division– Budgeting by Institution– Budgeting Reports for Management– Budgeting Reviews by Auditors– Budgeting Reviews by Outsiders (Banks, etc.)
Page 4
Budget, Balance, & the Ripple Effects of Executive Decisions
• Institutional Budget Practices – State Versus Private– Centralized Versus Decentralized– Operating (Current Budget)
• Funding for Personnel• Funding for Operations• Funding for Equipment
– Capital (Long Term)• Buildings and Land Acquisitions• Other
Page 5
Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget Software (Integrated Databases)– Integrated Databases– Shadow databases– Implementation Phases
• Testing• Documentation• Training• Production
Page 6
Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget Phobias– Math Expertise– Computer Expertise– Accounting Expertise– Budgeting Expertise– Relevance (distraction from core duties)– Failure (fear of stupid mistakes)
• If you fail to budget, you budget to fail.
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Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget Basics (THE LEVERS)– Base versus One time (DIFFERENT POTS OF
MONEY)• Base funding recurs for ongoing expenses
– Appropriations, Tuition• One-time funding may not recur
– Grants, Fundraising, Donations
• A word about Endowment
Page 8
Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget Basics (THE LEVERS)– Revenue
• Appropriations• Tuition (Fees & Enrollment Management)• Other
Page 9
Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget Basics (THE LEVERS)– Expenses
• Personnel (Salaries, Raises, Benefits, Co-Pays, Furloughs, Layoffs, Salary Cuts)
• Operations (Supplies, Equipment, Utilities)• Program Reviews (Academic and Administrative)• Budget Reallocations and Transfers• Other
Page 10
Budget, Balance, & the Ripple Effects of Executive Decisions
• Budget, Budget Who Responsible for the Budget?– You are or you want to be. That’s why you
are here. Right?– “Reinforce a culture of accountability” ~Tufts
• Sample Worksheet from Tuft’s
• Questions
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