OPERATING BUDGET AND PLAN
FY 2018 – 2019
Table of Contents Budget Summary. .......................................................................................... 1 2018-2019 Actions of the General Assembly .............................................. 3 2018-2019 Educational and General Program Priorities .......................... 5 2018-2019 Auxiliary Services Program Priorities ..................................... 6 Graph Comparing FY 2018 to 2019 Total University Revenue ............... 7 Graph Comparing FY 2018 to 2019 Total Revenue .................................. 8 Graph Comparing FY 2018 to 2019 E&G Revenue .................................. 9 Graph Comparing FY 2018 to 2019 E&G Expenditures ........................ 10 Graph Comparing FY 2018 to 2019 Auxiliary Revenue… ..................... 11 Graph Comparing FY 2018 to 2019 Auxiliary Expenditures ................. 12 Table 1: Revenue Summary ..................................................................... 13 Table 2: Expenditure Summary .............................................................. 14 Table 3: Summary of Auxiliary Services, Income and Expenditures .. 15 Table 4: Longwood University Foundation Support Summary ............. 18 Budget Allocation Ratio ............................................................................. 19 Instructional Budget per Student FTE ..................................................... 20 Debt Burden Ratio ..................................................................................... 21 Glossary ........................................................................................................ 22
1
BUDGET SUMMARY
This section provides an overview of the University's 2018-2019 operating budget. Detailed budget information is provided in the supporting tables. Highlights of the proposed plan are presented below.
The budget is based on assumptions related to enrollment projections, actions taken by the General Assembly and Governor, revenue calculations and expenditure estimates. Tuition revenue calculations are based on prior credit hour production.
$2,830,061 of current year anticipated surplus funds for FY 2019 are utilized to balance
the FY 2019 budget.
Tuition and fees, as approved for full time Virginia undergraduates, will increase by an average of $620, a 4.87 percent increase. This includes a discount of $250 on the 30th credit hour. Tuition for Virginia undergraduates was increased by $320, based on a thirty-credit-hour schedule. Tuition rates for in-state graduate, out-of-state undergraduate, and out-of-state graduate students were increased to $480, $785 and $995 per credit hour, respectively. In compliance with guidance set forth by the Governor and the General Assembly, auxiliary student fees and room and board charges may be increased to cover changes in inflationary costs, debt service expenses, and costs associated with base salary and benefit increases.
The projected revenue budget for FY 2019 is $129,558,946 which excludes $5,045,497 in state appropriation for student financial assistance. The proposed expenditure budget for the total University is $128,592,314.
The budget consists of two major components: the Educational and General Programs
budget and the Auxiliary Services budget.
The Educational and General Programs budget, which includes both general and nongeneral funding sources, is composed primarily of expenditures and revenues in the Instructional programs, as well as Sponsored Programs (grants and contracts). The total planned expenditures for FY 2019 are $71,677,986.
Longwood will contribute $61,000 in FY 2019 to fund faculty promotions. Additional funding of $29,021 is included in the faculty salary pool to continue the July 10, 2017, two percent faculty salary increase.
Longwood will fund the Core Curriculum CIVITAE implementation cost for FY19 with $888,908.
2
The second major component of the University's total budget is Auxiliary Services,
which includes activities such as student housing, dining services, parking and athletics. The proposed Auxiliary Services budget for 2018-2019 is $56,914,328. A total of $937,462 will be held in debt reserve for future use.
3
2018-2019 ACTIONS OF THE GENERAL ASSEMBLY
The General Assembly session began January 10, 2018, and ended on March 10, 2018. The General Assembly did not finalize a budget before the end of the regular session, and negotiations continue. As of this writing, the Senate Finance Committee is scheduled to consider a proposed budget proposal put forward by the House Appropriations chairman and a co-chairman of the Senate Finance Committee on May 29, 2018. If that budget proposal is adopted, Longwood’s total Educational and General (E&G) operating appropriation will increase from $69,099,081 to $69,796,261 -- $28,182,452 GF and $41,613,809 NGF. The budget would provide an additional $697,180 in FY19. Longwood’s FY 2019 general fund operating base increased by a net $1,291,604 (4.8%) from 2018. This is primarily due to additional funding for benefit cost increases. Longwood’s FY 2019 nongeneral fund operating base decreased $594,424. These changes will be reflected in our appropriation received from the state on July 1, 2018. Financial Aid General fund support for student financial assistance in FY19 would increase $376,476 for a total of $5,045,497. Southside Virginia Regional Technology Consortium (SVRTC) Funding remained at $108,905 for the SVRTC in FY 2019. Salary Increases Funding for salary increases is not included in FY19 of the budget proposal. Higher Education Equipment Trust Fund Funding for the FY 2019 Equipment Trust Fund (ETF) program of $743,433 general fund would be appropriated to Longwood under the budget proposal. This is unchanged from the previous year. Out-of-State Capital Fee Out-of-state students are required to pay 100 percent of the average cost of their education. Additionally, non-resident students will pay $20 per credit hour as a mandatory capital fee. The amount of capital fees that will be paid by the University to support state capital project debt
4
service on bonds issued under the 21st Century Program decreased $8,238 from $106,149 to $97,911. Capital Projects The budget proposal provides $2,488,000 for equipment for the New Academic Building. The budget also authorizes Longwood to begin planning the renovation and expansion of the Facilities Annex Building project. Longwood’s Maintenance Reserve funding for FY19 would be $1,878,865, an increase of $535,574 from FY18.
5
2018-2019 EDUCATIONAL AND GENERAL PROGRAM PRIORITIES
The University’s 2018-2019 Educational and General budget is based on priorities that support the strategic plan. After carefully examining the revenue projection for FY 2019, funds were allocated for strategic initiatives and fixed costs increases. The recommended expenditures include funds for the following:
Merit based and compression related salary adjustmentsfunding for Faculty, A/P, Classified and Wage positions. $449,900
Estimated Nongeneral Fund Portion of Health Insurance $416,819 and other Benefits Increases
Core Curriculum CIVITAE $888,908 Data Analytics $232,954 Increase in Faculty Promotions $ 61,000
6
2018-2019 AUXILIARY SERVICES PROGRAM PRIORITIES
The University’s 2018-2019 Auxiliary Services budget is based on the program priorities listed below. Auxiliary activities are required to be self-supporting and must maintain sufficient fund balances for operations, renewal and equipment replacement and capital reserves. The Board approved housing and dining rate increases on December 1, 2017. Comprehensive fees were approved May 18, 2018.
Auxiliary Indirect Cost Rate
The Auxiliary Services operations are charged an indirect cost recovery rate for services provided by educational and general operations (such as payroll processing, purchasing, billing services and facilities administration). The auxiliary cost study is submitted to SCHEV prior to the beginning of each biennium. The indirect cost rate for the 2018-2020 biennium is 14.19 percent. This is a .55 percent decrease from the prior biennium.
Housing
Housing revenue will continue to provide funds for maintenance reserve projects in the residence halls. Housing revenues are projected to exceed expenses by $2,000,000. These net revenues, will be utilized to support comprehensive fee budgets in FY 2019.
Dining
Dining revenues are projected to exceed expenses by $830,061. These net revenues will be utilized to support comprehensive fee budgets in FY 2019.
Comprehensive Fee Budgets
The comprehensive fee is used to support many auxiliary programs and services including: intercollegiate athletics, recreation and intramural programs, the student union, student health and wellness services, the Farmville Area Bus services, debt service, and repair and maintenance on nongeneral fund supported facilities. FY2019 planned contributions to reserves total $937,462. These reserves are for operating cost associated with the new university center and debt service to replace the Steam Distribution System on Wheeler Mall.
Tot
al R
even
ue
2018
-19
Rev
enu
e: $
129,
558,
946
2017
-18
Rev
enu
e: $
127,
208,
975
7
$56,46
6,70
1
$877
,186
$252
,500
$41,88
4,48
7
$27,72
8,10
1
$57,88
0,96
0
$989
,658
$207
,500
$42,00
7,21
2
$28,47
3,61
6
010
2030
4050
6070
Auxilia
ry
Grants/Co
ntracts
Miscella
neou
s E&
G
Tuition
and
Fee
s
Gen
eral Fun
d
Millions
Tot
al R
even
ue
Com
par
ison
By
Cat
egor
y
2018
-19
Tot
al R
even
ue:
$12
9,55
8,94
620
17-1
8 T
otal
Rev
enu
e: $
127,
208,
975Tu
itio
n a
nd
Fee
s$4
1,88
4,48
7(3
2.9%
)
Gen
eral
Fu
nd
$27,
728,
101
(21.
8%)
Gra
nts
/Con
trac
ts$8
77,1
86(0
.7%
)
Mis
cell
aneo
us
E&
G$2
52,5
00(0
.2%
)
Au
xili
ary
$56,
466,
701
(44.
4%)
8
Tu
itio
n a
nd
Fee
s$4
2,00
7,21
2 (3
2.4%
)
Gen
eral
Fu
nd
$28,
473,
616
(22.
0%)
Gra
nts
/Con
trac
ts$9
89,6
58(0
.8%
)
Mis
cell
aneo
us
E&
G$2
07,5
00
(0.2
%)
Au
xili
ary
$57,
880,
960
(44.
6%)
E&
G R
even
ue
Com
par
ison
By
Cat
egor
y
2018
-19
E&
G R
even
ue:
$71
,677
,986
2017
-18
E&
G R
even
ue:
$70
,742
,274
9
Tu
itio
n a
nd
Fee
s$4
2,00
7,21
2(5
8.6%
)
Gen
eral
Fu
nd
$28,
473,
616
(39.
7%)
Gra
nts
/Con
trac
ts$9
89,6
58(1
.4%
)Mis
cell
aneo
us
E&
G$2
07,5
00(0
.3%
)
Tu
itio
n a
nd
Fee
s$4
1,88
4,48
7(5
9.2%
)
Gen
eral
Fu
nd
$27,
728,
101
(39.
2%)
Gra
nts
/Con
trac
ts$8
77,1
86(1
.2%
)
Mis
cell
aneo
us
E&
G$2
52,5
00(0
.4%
)
E&
G E
xpen
dit
ure
Com
par
ison
By
Cat
egor
y
2017
-18
E&
G E
xpen
dit
ure
s: $
70,7
42,2
74
10
2018
-19
E&
G E
xpen
dit
ure
s: $
71,6
77,9
86
Inst
ruct
ion
&
Aca
dem
ic S
up
por
t $4
4,78
3,28
7(6
2.5%
)
Sp
onso
red
P
rogr
ams
$989
,658
(1.4
%)
Pu
bli
c S
ervi
ce
$549
,783
(0
.8%
)
Stu
den
t S
ervi
ces
$4,8
82,1
42(6
.8%
)
Inst
itu
tion
al
Su
pp
ort
$11,
502,
656
(16.
0%)
Pla
nt
Op
erat
ion
s $7
,023
,258
(9.8
%)
Sch
olar
ship
s $1
,947
,202
(2
.7%
)
Inst
ruct
ion
&
Aca
dem
ic S
up
por
t $4
3,76
0,44
9(6
1.9%
)S
pon
sore
d
Pro
gram
s $8
77,1
86(1
.2%
)
Pu
bli
c S
ervi
ce
$508
,390
(0.7
%)
Stu
den
t S
ervi
ces
$4,6
25,6
99(6
.5%
)
Inst
itu
tion
al
Su
pp
ort
$11,
042,
193
(15.
6%)
Pla
nt
Op
erat
ion
s $7
,600
,477
(10.
7%)
Sch
olar
ship
s
$2,3
27,8
80(3
.3%
)
Au
xili
ary
Ser
vice
s R
even
ue
Com
par
ison
By
Cat
egor
y
2018
-19
Au
xili
ary
Rev
enu
e: $
57,8
80,9
60
2017
-18
Au
xili
ary
Rev
enu
e: $
56,4
66,7
01
11
Com
pre
hen
sive
F
ees
$20,
836,
755
(3
6.0%
)
Hou
sin
g $2
4,40
7,75
2(4
2.1%
)
Din
ing
$9,3
52,3
62(1
6.2%
)
Dir
ect
Fee
s $3
,129
,791
(5.4
%)
Fed
eral
W
ork
Stu
dy
$154
,300
(0
.3%
)C
omp
reh
ensi
ve
Fee
$2
1,38
7,46
0 (3
7.9%
)
Hou
sin
g $2
3,60
8,75
3(4
1.8%
)
Din
ing
$8,9
95,5
53
(15.
9%)
Dir
ect
Fee
s $2
,320
,635
(4
.1%
)F
eder
al
Wor
k S
tud
y $1
54,3
00
(0.3
%)
Au
xili
ary
Ser
vice
s E
xpen
dit
ure
Com
par
ison
By
Cat
egor
y
2018
-19
Au
xili
ary
Exp
end
itu
res:
$57
,880
,960
2017
-18
Au
xili
ary
Exp
end
itu
res:
$56
,466
,700
12
Hou
sin
g$2
0,70
4,41
035
.8%
Din
ing
$8,3
63,8
5414
.5%
Par
kin
g$6
53,4
141.
1%A
thle
tics
$7,4
53,6
6712
.9%
Tel
ecom
mu
nic
atio
ns
$979
,168
1.7%
Rec
reat
ion
al
Sp
orts
$1
,021
,964
1.8%
Stu
den
t H
ealt
h$1
,586
,129
2.7%
Stu
den
t U
nio
n$1
,733
,891
3.0%
Oth
er A
uxi
liar
ies
$7,5
72,8
7313
.1%
Deb
t S
ervi
ce$6
,844
,958
11.8
%
Res
erve
s $9
66,6
321.
4%
Hou
sin
g $2
0,57
4,98
1 (3
6.4%
)
Din
ing
$7,9
07,6
1614
.0%
)
Par
kin
g $6
59,5
96(1
.2%
)
Ath
leti
cs
$8,0
19,2
29(1
4.2%
)
Tel
e-co
mm
un
icat
ion
s $9
50,4
73(1
.7%
)
Rec
reat
ion
al
Sp
orts
$1
,026
,740
(1
.8%
)
Stu
den
t H
ealt
h
$976
,115
(1.7
%)
Stu
den
t U
nio
n
$1,7
81,3
59(3
.2%
)Oth
er
Au
xili
arie
s $6
,650
,489
(11.
8%)
Deb
t S
ervi
ce
$6,8
75,0
14(1
2.2%
)R
eser
ves
$1,0
45,0
88(1
.9%
)
TABLE 1 13REVENUE SUMMARY
Budget Proposed2017-2018 2018-2019
EDUCATIONAL AND GENERAL
Tuition and Fees 41,884,487 42,007,212
Commonwealth Appropriations * 27,728,101 28,473,616
Federal Grants and Contracts 663,649 828,827
State/Local/Private Grants and Contracts 213,537 160,831
Other Sources 252,500 207,500
Total Educational and General 70,742,274 71,677,986
AUXILIARY REVENUE
Total Auxiliary Revenue 56,466,701 57,880,960
INSTITUTIONAL TOTAL 127,208,975 129,558,946
*Appropriation excludes Higher Education Student Financial Assistance of$4,669,021 in FY 2018 and $5,045,497 in FY 2019.
14
Budget 2017-2018
Proposed 2018-2019
EDUCATION AND GENERAL
Instruction 35,497,000 37,249,231
Sponsored Programs 877,186 989,658
Public Service 508,390 549,783
Academic Support 8,263,449 7,534,056
Student Services 4,625,699 4,882,142
Institutional Support 11,042,193 11,502,656
Plant Operation & Maintenance 7,600,477 7,023,258
Scholarships & Fellowships 1,2 2,327,880 1,947,202
Total E&G Expenditures 70,742,274 71,677,986
AUXILIARY ENTERPRISES
Expenditures 48,546,598 50,069,370
Transfers Debt Service (Mandatory) 6,875,014 6,844,958 Non-Mandatory
Total Auxiliary Enterprises 55,421,612 56,914,328
INSTITUTIONAL TOTAL 126,163,886 128,592,314
2 Scholarships of $580,678 will be paid by the Longwood Foundation
EXPENDITURE SUMMARYTABLE 2
1 FY 2018 and FY 2019 exclude $4,669,021 and $5,045,497 respectively in Higher
Education Financial Assistance from State Appropriations
TABLE 3
INCOME AND EXPENDITURES 15
Budget Proposed2017-2018 2018-2019
RESIDENCE HALLS
Direct Income 117,800 2,117,800
Income (Room Fees ) 23,563,253 22,362,252
Expense 20,574,981 20,704,410
Debt Service (Mandatory) 1,779,128 1,775,642
Non-Mandatory Transfers (1,326,944) (2,000,000)
Net (Contribution to Fund Balance) 0 0
FOOD SERVICES
Direct Sales 113,000 136,000
Income ( Meal Plans) 8,952,553 9,286,362
Expense 7,907,616 8,363,854
Debt Service (Mandatory) 231,642 228,447
Non-Mandatory Transfers (926,295) (830,061)
Net (Contribution to Fund Balance) 0 0
BOOKSTORE
Income (Sales and Contracts) 375,000 375,000
Expense 273,195 345,830
Debt Service (Mandatory) 0 0
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 101,805 29,170
ATHLETICS
Income (Direct Sales and Services) 309,580 309,580
Student Fees 8,748,724 8,170,912
Expense 8,019,229 7,453,667
Debt Service (Mandatory) 1,039,075 1,026,825
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
PARKING AND TRANSPORTATION
Income (Direct Sales and Services) 650,000 685,000
Student Fees 339,399 299,119
Expense 659,596 653,414
Debt Service (Mandatory) 329,803 330,705
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
Continued on next page
SUMMARY OF AUXILIARY SERVICES
TABLE 316
INCOME AND EXPENDITURES
Budget Proposed2017-2018 2018-2019
TELECOM SYSTEMS
Income (Direct Sales and Services) 1,000 1,000
Student Fees 949,473 978,168
Expense 950,473 979,168
Debt Service (Mandatory) 0 0
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
STUDENT HEALTH
Income (Direct Sales and Services) 50,000 375,200
Student Fees 926,115 1,210,929
Expense 976,115 1,586,129
Debt Service (Mandatory) 0 0
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
STUDENT UNION
Income (Direct Sales and Services) 5,000 5,000
Student Fees 3,179,415 3,128,597
Expense 1,781,359 1,733,891
Debt Service (Mandatory) 1,403,056 1,399,706
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
RECREATION AND INTRAMURALS
Income (Direct Sales and Services) 50,000 50,000
Student Fees 2,121,300 2,113,847
Expense 1,026,740 1,021,964
Debt Service (Mandatory) 1,144,560 1,141,883
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
Continued on next page
SUMMARY OF AUXILIARY SERVICES
TABLE 3
INCOME AND EXPENDITURES 17
Budget Proposed2017-2018 2018-2019
CONFERENCES
Income (Direct Sales and Services) 374,555 358,225
Student Fees 0 0
Expense 374,555 358,225
Debt Service (Mandatory) 0 0
Non-Mandatory Transfers 0 0
Net (Contribution to Fund Balance) 0 0
OTHER AUXILIARY
Income (Direct Sales and Services) 517,500 982,786
Student Fees 5,123,033 4,935,183
Expense 6,002,739 6,868,818
Debt Service (Mandatory) 947,750 941,750
Non-Mandatory Transfers In 2,253,239 2,830,061
Net (Contribution to Fund Balance 943,283 937,462
TOTAL AUXILIARY ENTERPRISES
Income (Direct Sales and Services) 2,563,435 5,395,591
Student Fees 53,903,265 52,485,369
Expense 48,546,598 50,069,370
Debt Service (Mandatory) 6,875,014 6,844,958
Prior Year General Auxiliary SurplusNet (Contribution to Fund Balance) 1,045,088 966,632
SUMMARY OF AUXILIARY SERVICES
TABLE 4 18
LONGWOOD UNIVERSITY FOUNDATIONINSTITUTIONAL SUPPORT SUMMARY
2018-2019
Academic Departments 750,000
Administrative & Student Services 250,000
Advancement 325,000
Marketing & Operations 125,000
Athletics 325,000
Facilities & Grounds 125,000
Sub Total 1,900,000
Scholarships
Educational & General 580,678
Auxiliary 571,413
Sub Total 1,152,091
Grand Total 3,052,091
Bu
dge
t A
lloc
atio
n R
atio
Fis
cal Y
ear
2017
2
016
2018
Inst
ruct
ion
and
6
1.55
%
62
.02%
61.8
6%
62.4
7%
Aca
dem
ic S
up
por
t
Pu
bli
c S
ervi
ce
0
.81%
0
.73%
0
.72%
0
.77%
Stu
den
t S
ervi
ces
6
.79%
6.81
%
6.
54%
6
.81%
Inst
itu
tion
al S
up
port
14.4
9%
14.
63%
15.6
1%
16.0
5%
Op
erat
ion
and
10.5
2%
10.
57%
10.7
4%
9.8
0%
Mai
nten
ance
of
Pla
nt
Stu
den
t A
id
2.9
9%
3.4
1%
3.2
9%
2.7
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pon
sore
d P
rogr
ams
2
.85%
1
.83%
1.24
%
1.3
8%
For
mu
la
Exp
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itu
re B
udg
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by
fun
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al E
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s in
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fun
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L
ongw
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Un
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The
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ongw
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dent
Ser
vice
s in
crea
sed
over
the
prev
ious
year
due
to s
alar
y, b
enef
its
and
oper
atin
g in
crea
ses.
In
stit
utio
nal S
uppo
rt in
crea
sed
prim
aril
y as
a r
esul
t of
a re
dist
ribu
tion
of
oper
atin
g fu
ndin
g an
d sa
lary
and
bene
fit i
ncre
ases
.
O
pera
tion
and
Mai
nten
ance
of
Pla
nt d
ecre
ased
due
to a
redi
stri
buti
on o
f op
erat
ing
fund
ing
S
tude
nt A
id f
undi
ng d
ecre
ased
due
to $
380,
678
insc
hola
rshi
ps b
eing
fun
ded
in F
Y19
by
the
foun
dati
on.
S
pons
ored
Pro
gram
s in
crea
se is
pri
mar
ily
due
mor
efe
dera
l gra
nts.
19
2019
Sou
rce:
SC
HE
V 2
B E
nro
llm
ent
Pro
ject
ion
s –
Fal
l an
d S
pri
ng
S
emes
ters
(O
n a
nd
Off
Cam
pus
)
For
mu
la:
In
stru
ctio
n a
nd
Aca
dem
ic S
up
por
t B
ud
gets
F
all a
nd
Sp
rin
g E
nro
llm
ent
Pro
ject
ion
s
Inst
ruct
ion
al B
ud
get
per
Stu
den
t F
TE
Sig
nif
ican
ce o
f In
dic
ator
Thi
s in
dica
tor
refl
ects
the
amou
nt o
f fu
nds
expe
nded
for
In
stru
ctio
n an
d A
cade
mic
Sup
port
per
eac
h fu
ll-t
ime
equi
vale
nt s
tude
nt.
A d
ram
atic
cha
nge
in th
e ra
tio
sign
als
a sh
ift i
n th
e fu
ndin
g pr
iori
ties
of
the
inst
itut
ion.
A s
igni
fica
nt c
hang
e al
so c
an
acco
mpa
ny a
n en
roll
men
t inc
reas
e or
dec
line
.
Lon
gwoo
d U
niv
ersi
ty’s
Cu
rren
t S
tatu
s
In F
Y 2
017
the
incr
ease
of
$111
is p
rim
aril
y du
e to
add
itio
nal
fund
ing
for
stud
ent r
esea
rch,
sch
olar
ship
s an
d pr
opos
ed p
ay
incr
ease
s.
In F
Y 2
018
the
incr
ease
is p
rim
aril
y du
e to
add
itio
nal f
undi
ng
for
core
cur
ricu
lum
and
sal
ary
incr
ease
s.
In F
Y19
the
inc
reas
e is
pri
mar
ily
for
addi
tion
al f
undi
ng f
or
core
cur
ricu
lum
CIV
ITAE
and
mer
it b
ased
and
com
pres
sion
re
late
d sa
lary
adj
ustm
etnt
s.
The
tota
l ann
ual E
duca
tion
al &
Gen
eral
bud
get p
er in
-sta
te
FT
E is
$15
,683
whi
ch is
a d
ecre
ase
of $
372
com
pare
d to
the
prev
ious
yea
r. T
his
excl
udes
the
amou
nt b
udge
ted
for
Spo
nsor
ed P
rogr
ams
and
Sta
te H
ighe
r E
duca
tion
Fin
anci
al
Aid
.
20
21
Lon
gwoo
d U
niv
ersi
ty’s
Cu
rren
t S
tatu
s
Lon
gwoo
d’s
Deb
t Ser
vice
to T
otal
Bud
gete
d E
xpen
ditu
res
is
5.3
6 pe
rcen
t for
FY
201
9. T
his
calc
ulat
ion
is b
ased
on
sc
hedu
led
debt
pay
men
ts f
or F
Y 2
019
and
tota
l bud
gete
d
expe
ndit
ures
less
res
erve
s.
Deb
t B
urd
en R
atio
Sig
nif
ican
ce o
f R
atio
The
deb
t bur
den
rati
o ex
amin
es th
e U
nive
rsit
y’s
depe
nden
ce u
pon
borr
owed
fun
ds a
s a
mea
ns o
f fi
nanc
ing
its
mis
sion
. It
com
pare
s th
e le
vel o
f de
bt s
ervi
ce w
ith
the
inst
itut
ion’
s bu
dget
ed e
xpen
ditu
res.
For
mu
la:
Deb
t S
ervi
ceT
otal
Exp
end
itu
re B
ud
get
A le
vel t
rend
or
a de
crea
sing
rat
io o
ver
tim
e in
dica
tes
that
deb
t ser
vice
ha
s su
ffic
ient
cov
erag
e w
itho
ut im
ping
ing
furt
her
on o
ther
fun
ctio
nal
area
s. T
he s
tand
ard
for
high
er e
duca
tion
is a
max
imum
of
7 pe
rcen
t, m
eani
ng th
at c
urre
nt p
rinc
ipal
and
inte
rest
exp
ense
sho
uld
not b
e gr
eate
r th
an 7
per
cent
of
the
tota
l bud
get.
Alt
houg
h th
e 7
perc
ent l
evel
is a
n ac
cept
able
thre
shol
d, th
is p
erce
ntag
e ca
n ra
nge
betw
een
5 pe
rcen
t and
10
perc
ent.
The
act
ual p
erce
ntag
e w
ill
vary
bas
ed u
pon
the
fina
ncia
l str
engt
h of
the
inst
itut
ion.
Ins
titut
ions
w
ith
grea
ter
flex
ibil
ity
in a
lloc
atin
g fu
nds
wil
l be
able
to ta
ke o
n ad
diti
onal
deb
t. L
ongw
ood
part
icip
ates
in th
e st
ate
bond
pro
gram
w
hich
is b
ased
on
fixe
d ra
tes.
Deb
t is
not i
ncre
ased
wit
hout
bud
geti
ng
an in
crea
se in
fun
ds a
vail
able
to p
ay th
e fi
nanc
ial o
blig
atio
ns.
In M
arch
200
7, th
e B
oard
of
Vis
itor
s ap
prov
ed a
n in
stit
utio
nal d
ebt
rati
o of
up
to 9
per
cent
to f
acil
itate
the
com
plet
ion
of n
onge
nera
l fun
d pr
ojec
ts a
ppro
ved
by th
e G
ener
al A
ssem
bly.
22
Glossary
Academic Support: Includes activities conducted to provide support services to the institution's three primary programs: instruction, research and public service. Examples include the library, deans, academic technology, academic service center and disability resources.
Appropriation: An expenditure authorization with specific limitations as to amount, purpose, and time; formal advance approval of an expenditure from designated resources available or estimated to be available.
Auxiliary Services: Activities within the University that exist to furnish goods or services directly or indirectly to students, faculty and staff. These activities charge fees directly related to, but not necessarily equal to, the cost of the service. Auxiliary services must be self-supporting.
Banner: Longwood’s administrative information system that integrates Finance, Student and Human Resources modules within a single enterprise system.
Direct Sales (Auxiliary): Sales of auxiliary services, to include facility rental, bookstore income, parking decals/fines and recreation center memberships.
Educational & General (E&G): Term used to describe all operations related to the institution’s educational objectives.
Full-Time Equivalent (FTE): A means for expressing part-time students or faculty as a full-time unit. The formula is generally based on credit hours. Example: An institution may define full-time as being twelve credit hours, so a student (or faculty member) taking (or teaching) three credit hours would then equal .25 FTE.
General Funds: Revenue received from the State from the collection of taxes, fees and other charges.
Grants and Contracts (Sponsored Programs): Sponsored program funds are generated through a grant or contractual agreement. Funds may be provided by state, federal, local or private entities. Sponsored program funds must be expended for the purposes outlined in the respective grant/agreement.
Indirect Costs: Fee charged to grants or contracts to pay for the use of University facilities, i.e., overhead.
Institutional Support: Activities whose primary purpose is to provide operational support for the day-to-day functioning of the institution, excluding physical plant operations. Examples include the President, Vice-Presidents, institutional research and assessment, administrative technology, public relations, financial operations, internal audit, human resources, and safety and security.
Instruction: Includes all activities that are part of the institution's instructional program, primarily all academic departmental operations.
23
Mandatory Transfers: Transfers arising out of (1) binding legal agreements related to the financing of the educational plant, such as amount for debt retirement, interest and required provisions for renewals and replacements of plant, not financed from other sources, and (2) grant agreements with agencies of the federal government, donors, and other organizations to match gifts and grants to loan funds and other funds.
Miscellaneous E&G Revenues: Includes nongeneral fund revenues derived from the sale of goods or services that are incidental to the conduct of instruction, research or public service. Examples include revenues from facility rentals, payment plan fees, administrative fees and indirect costs.
Nongeneral Funds: Tuition, fees, and all other funds not received from the State. This includes grants and contracts income.
Nonmandatory Transfers: These transfers serve a variety of objectives such as moving monies generated in auxiliary enterprise fund groups to an E&G fund group or to a capital outlay fund group for use in providing project funding.
Operation and Maintenance of Plant: This category includes the operation and maintenance of the physical plant. It includes all operations established to provide services and maintenance related to campus grounds and facilities. It also includes utilities, insurance, facilities management, custodial services, sustainability and power plant operations.
Public Service: Includes all funds expended for those noninstructional services established and maintained to provide services to the general community or special sectors within the community. Community service is concerned with making available to the public various resources and unique capabilities that exist within the institution. The Longwood Small Business Development Center is included in this category.
Restructuring: Legislation that allows institutions of higher education varying levels of decentralization in the areas of procurement, personnel and capital outlay while establishing commitments and performance measures for the institutions.
Student Fees (Auxiliary): Student dining, housing and comprehensive fees.
Student Services: Those activities whose primary purpose is to contribute to students' emotional and physical well-being and to their intellectual, cultural and social development outside the context of the formal instruction program. Examples include academic and career advising, admissions, registration, financial aid and student success.
Tuition and Fees: Nongeneral funds that include all tuition and fees assessed against students for current operating purposes. Fees include application fees, registration fees, course fees and on-line fees.