Final Budget 2014-2015

Office of the Vice President FinancePresented by: Mateusz Miadlikowski

Overview

1. Final Budget- Purpose

2. Process

3. Finances- breakdown

4. Funds- transfers

5. Current financial situation

6. Moving forward

FINAL BUDGETPurpose

Purpose

• Code: Article 8(4):

– Final budget shall include the budget projections adopted

by Council the previous year, the actual expenditures and

revenues to date, variances, and the next fiscal year‟s

budget projections for all the Society‟s operations,

including but not limited to the business operations.

– final budget shall provide a detailed breakdown of

revenues and expenditures within each department of the

Society, a department in this context meaning an individual

student service, Commission, business, staff department or

position, executive member, and so forth.

PROCESS Step by step

Process

• Internal review of Actuals 13/14- not final

• Departments:

– Documents sent: handbook, budget template for each department

– Required Documents: filled budget template, priorities, justifications, statement,

presentation

• Review by the VP Finance

• Individual meetings with the heads of departments- VP Finance and Executive

Director

• Final Review, adjustments, consolidation

• Submission to the Budget Committee

• Budget Committee’s review

– Meetings with heads of departments and executives

• Adjustments of the Budget, provision of additional information

• Submission to the AMS Council

Features of the 2014-2015 Budgeting Process

• Decentralized process– Involvement of departments/ consultations

• Bottom- up approach– Involvement of all departments

• Ongoing consultations– Ongoing communication/ multiple rounds of review

• Zero based– Full justification of expenses

• Sustainability and future planning– Long term vision/ fiscal year in perspective

• Creative thinking– Not following previous budgets/ reorganization

• Realistic planning/avoiding budgeting slack– Overestimation of expenses/ underestimation of revenues– Solution: Required justifications and multiple rounds of review

Proposal Requirements

• Purpose

• Goals

• Projects/Functions

• Rank & Prioritize

• Formulation of Expenses

• Justification

• Filled out budget template

Evaluation

• Identified Purpose• Realistic Goals• Prioritized Projects• Proper Justification of each

expense• Metrics• Student Focus- AMS mission

statement• Realistic and Researched

Numbers

AMS Mission Statement

To improve the quality of the educational,

social, and personal lives of the students of

UBC.

AMS Values

Honesty

Effectiveness

Accountability

Respect

Teamwork

FINANCESBreakdowns

RevenuesTotal fees:

17,562,124Business Contribution:

485,694Investment Returns:

275,000

TOTAL REVENUE:

18,322,818

TOTAL REVENUES FROM FEES

Businesses

Investments

Student FeesGeneral Fee

Capital Projects Fund Fee

Student Aid Bursary Fee

Athletics and Intramural Fee

University and External Lobbying Fee

Student Services Fee

Ombudsperson Fee

Sexual Assault Support Services Fee

SUB Renewal Building Fee

WUSC Fee

Resource Groups Fee

Lighter Footprint Fee

International Fee

Bike Kitchen Fee

Clubs Benefit Fee

Childcare Bursary Levy Fee

CiTR Fee

Student Legal Fund Fee

Health and Dental Fee

Graduating Class and Constituency Fees

Student Fees

• Expected Number of Students– Average of the previous 3 years

46,604 Students

2014-2015 Year Prediction

2012-2013 Actuals 2011-2012 Actuals 2010-2011 Actuals 2009-2010 Actuals0

10,000

20,000

30,000

40,000

50,000

60,000

Discretionary Funds

Total transfers from Funds

Net Discretionary Income

Businesses

Investments

• Non- discretionary allocations:

15,760,023• Net Discretionary

Income: 1,776,998• Transfers from funds:

432,372• Businesses:

485,694• Investments:

275,000• Administration:

- 809,828

• Total Income:

2,185,339

• FY 2013-14:

1,161,256

Total Operations Income

• Revenue

Total Fees: 17,562,124

Non-

Discretionary -15,760,023

Business 485,694

Investments 275,000

Administration -809,828

________________________

Net Dis. Income $1,752,967

________________________

Total $ 2,185,339

• Transfers

SASC: 130,642

Services 239,502

New SUB 26,078

External/University 37,650

______________________________

Add Net Dis. Income $432,372

Expenditures• Total Student

Government

764,780• Total Student

Services

464,869• Total Programs and

Publications

348,062• Contingency

87,648

• TOTAL EXPENDITURE:

1,577,711

TOTAL STUDENT GOVERNMENT

TOTAL STUDENT SERVICES

TOTAL PROGRAMS AND PUBLICATIONS

CONTINGENCY

Transfers from funds

• January 2014 Referendum eliminated fees:– University and External Lobbying- $4.14– Services- $7.25

• But the restricted funds still exist:– U & EL- $40,462.81– Services- $561,077.46

• Plan: – use the funds until they reach zero– eliminate the structural deficit

• Without the transfers still in a large surplus of:

$242K

SURPLUSRationale

Surplus

• High Surplus due to:– Increased businesses’ contribution

• $ 485K estimated revenue• $ 380K actual net contribution FY 13/14

– Budgeted $106K

• New SUB

– New structure of student fees• Significant increase in discretionary funds• But increased contingency

– Increased number of members– Transfers from the funds

Surplus

• Projected Surplus FY 2014/15

$519,980

• Budget Committee shall: – make recommendations about dealing with deficits, surpluses,

and unallocated revenue from donors and sponsors, in accordance with Section IX B, Articles 4 and 5;

– If there is an unforeseen surplus, it shall be deposited in the AMS Endowment Fund

• Protection from unpredictable businesses’ contribution• Need to eliminate the deficit first

Accumulated Deficit

• Previous Structural Deficit– Ending FY 13/14 with a surplus:

$97,783• Lower expenditures- Student Government and

Programs/Publications• Higher business contribution• Higher investment returns

• Current accumulated structural Deficit:

-$196,242

Moving forward

• Projections:– Elimination of the entire deficit by the end of

FY 14/15

• -196K + 519K = + 323K• Amendments Event Department:

– Block Party– “Welcome Back Concert”