Planning and Budget Process Manual 2013-2014 April 2013 President’s Letter Although the document that accompanies this letter is revised, approved and published annually, the planning and improvement processes it describes are continuous events at Brookhaven College. What may have seemed at one time a decennial event (i.e. the 10-year reaffirmation of our regional accreditation) has clearly become a daily practice. We recognize, in the words of Antoine de Saint-Exupéry, that “A goal without a plan is just a wish,” and have gradually and smartly moved toward a college-wide practice and culture of establishing strategic goals, utilizing data to inform our decision-making and measure our achievements, and reporting our findings widely and frequently. Brookhaven College planning processes and procedures necessarily tie into those of the Dallas County Community College District; in particular, the vision and direction set by the Board of Trustees. They paint with broad strokes and leave to us the exciting detail work which leads to a rich and often complex picture not only of our college’s institutional effectiveness, but also of our employees’ and students’ creativity, engagement, and commitment to our mission. I believe that we plan with a desire to learn and share, to reflect and rethink, and to dream and determine our future. We might agree that with Publilius Syrus that “It is a bad plan that admits of no modification.” So, to that colleague at another institution who once bemoaned that, “50 percent of planning is pain,” I say, “Not at Brookhaven College.” Here we continue to refine our approaches, discuss the results and celebrate our successes even as we accept our occasional failures. Let us continue do so together and for many years to come. Thom D. Chesney Brookhaven College President 1 Table of Contents Page Number President’s Letter 1 Table of Contents 2 Non-Discrimination Policy 3 Overview of Planning, Budget and Evaluation Processes and Procedures 4 Planning Diagram 1 6 Planning Diagram 2 7 Brookhaven College Mission 8 Brookhaven College Strategic Directions 2013-2018 9 Organization of Planning Workgroups and Planning Leaders 15 Office of Planning, Research and Institutional Effectiveness 21 Strategic Planning Online Support 22 Questions to Ask When Planning 23 Outcomes and Assessment at Brookhaven College 24 Office of Business Services 25 College Revenue Allocation Formula 26 Cycle of Allocations 30 Comparative Budget Process 32 Building the Annual Budget 33 Fund Balance Practice for Colleges 34 Planning and Budget Committee 36 Brookhaven College Budget Strategic Assumptions 37 Definition and Use of Lag Dollars 38 Glossary – Fund Groups 39 Functional Areas of Expenditures 40 Planning and Budget Calendar 43 2 Nondiscrimination Policy - Educational and employment opportunities are offered by the Dallas County Community College District without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, genetic information, gender identity or gender expression. Planning and Budget Process Manual 2013-2014 Compiled by: Michael Dennehy, Ed.D., associate vice president for Planning, Research and Institutional Effectiveness Second edition approved April 22, 2013 3 Overview of Planning and Budget Process Brookhaven College conducts strategic and operational planning with broad and active participation from all college workgroups on an annual cycle. The primary focus of college workgroup planning is the demonstration of continuous quality improvement in teaching, learning and college services. Active planning and documentation of outcomes assessment across the entire college directly supports the achievement of the college’s mission and strategic directions. The Brookhaven College Strategic and Operational Planning Process is the necessary foundation work for the college-wide budget development process. This process manual was originally approved by the President’s Cabinet during the fall semester of 2010 and is reviewed annually. The President’s Cabinet serves as the de facto Institutional Effectiveness Committee and reviews the consolidated results of the planning and budget process on an annual basis for the purpose of reviewing program level results, setting priorities and establishing new collegewide strategic objectives. A new feature within the planning process for the 2010-2011 planning year was the use of Strategic Planning Online (SPOL) to capture plans from every college workgroup in a secure online document management system database. The SPOL database is used to generate progress and summary reports, which demonstrate college institutional effectiveness and continuous quality improvements at the division, department and workgroup level. The Strategic and Operational Planning Process encompasses the work of a variety of special initiatives as well as mandated requirements, each with its own planning and reporting processes. Planning Principles • Planning and assessment focus on improvements across the college. • Planning drives budget development, but is not limited to budget requests. • Information is widely shared. • Planning, evaluation and program improvement is inclusive of all workgroups. • Planning is both “outside-in” and “inside-out,” taking into account external developments and needs as well as those internal to the college and the system. • Planning includes reporting student learning outcomes and operational outcomes. Strategic planning answers the question, “what should we do?” It concentrates on the external environment; orients toward change; is proactive; emphasizes doing the right thing; values expert opinions, intuition, and qualitative information; considers planning to be “outside-in.” It spans organizational boundaries, deals with greater levels of uncertainty, and is dictated by changes in the external environment that have relevance to the organization. Operational planning answers the question, “how and when should we do what needs to be done.” It concentrates on the organization, emphasizes stability, is reactive, emphasizes doing things right, values facts and the quantitative, and considers planning to be “inside-out.” It involves resource allocation within units of the organization and is often determined by budget cycles. 4 Definitions and sources: Cope, R.G. (1987). Opportunity from Strength: Strategic Planning Clarified with Case Examples. [Higher Education Report #8]. Washington, D.C. ASHE-ERIC Clearinghouse on Higher Education. (ED296695) Norris, D.M. & Poulton, N.L. (1991). A Guide for New Planners. Ann Arbor, MI: Society for College and University Planning. Rodehaver, D. (1998, Summer) A Developmental Perspective on Planning. Planning for Higher Education, 26, 37-44. Planning Process Brookhaven College engages in ongoing, integrated, and institution-wide researchbased planning and evaluation processes that (1) incorporate a systematic review of institutional mission, goals and outcomes; (2) result in continuing improvement in institutional quality; and (3) demonstrate the institution is effectively accomplishing its mission. Each planning workgroup is to complete the evaluation of 2013-2014 goals and activities with special attention paid to the documentation of the use of results. All instructional, administrative or educational support workgroups will conduct annual program-level assessments and engage in and document continuous program improvement efforts. Procedures 1. All planning workgroups should continue workgroup goals into the next planning year as appropriate if the goal is to be extended. All workgroups will use the SPOL system for the evaluation of completed goals and activities, as well as the development of new Strategic and Operational Plans for the coming 2013-2014 academic year. Technical support for SPOL implementation will be provided by the Office of Planning, Research and Institutional Effectiveness. SPOL training sessions are scheduled to support the planning process and all workgroup planning leaders are required to attend update sessions held in both the fall and spring semesters. Please review the Brookhaven Mission, Brookhaven College 2018: Strategic Goals & Values, as well as the DCCCD Board Priorities Strategic Objectives, and Illustrative Measures. The college mission goals directly support the attainment of the college mission. The college Strategic Goals supports the long term success of the college. All college workgroups will work to align their Strategic and Operational Plans to support the attainment of both the Brookhaven College Mission Goals and the 2018 Strategic Goals. 2. There is no requirement for a workgroup to address every college Mission Goal and Strategic Direction, but each workgroup should carefully select the goals that are most appropriate to their Strategic and Operational Plan purposes. 3. Workgroups developing Strategic and Operational Plans with technology funds that would have computer or software implications are asked to contact Michael Deason at ext. 4670 to coordinate these technology requests prior to entering workgroup plans into the SPOL system. The purpose of this coordination is to preserve limited technology funds by combining purchases college-wide where feasible. 5 4. Prepare workgroup prioritized Strategic and Operational Plans. Each workgroup SPOL Planning Leader is responsible for entering the information into the SPOL system according to the published planning calendar timelines. Planning Diagram 1 External Requirements Southern Association of Colleges and Schools: Commission on Colleges Texas Higher Education Coordinating Board Dallas County Community College District Board of Trustees 6 Brookhaven College Strategic and Operational Planning and Evaluation Cycle Directly Supporting the Achievement of the College Mission Step 4 Revise and Improve instruction and administrative operations, then document the "use of results" with SPOL Step 1 Plan measurable workgroup goals and objectives, then document the plans using SPOL The Brookhaven College Mission and 2018 Strategic Goals Step 3 Assess/ Measure student and operational outcomes, then document the results using SPOL Step 2 Implement the planned activities to support the achievement of the college mission, then document the activites using SPOL Planning Detailed Diagram 2 7 Brookhaven College Mission At Brookhaven College, a public, open-door, two-year institution dedicated to student success, we provide quality educational programs by offering a broad range of programs, learning opportunities and experiences. We prepare our students to value the individuals and organizations within our diverse community and to face the challenges as responsible and productive members of society. We achieve our mission through our goals and strategic directions. The goals and purposes of Texas public community colleges is as set forth in Education Code 130.003, as follows: The purpose of each public community college shall be to provide: a. Technical programs up to two years in length leading to associate degrees or certificates; b. Vocational programs leading directly to employment in semi-skilled and skilled occupations; c. Freshman and sophomore courses in arts and sciences; d. Continuing adult education programs for occupational or cultural upgrading; e. Compensatory education programs designed to fulfill the commitment of an admissions policy allowing the enrollment of disadvantaged students; f. A continuing program of counseling and guidance designed to assist students in achieving their individual educational goals; g. Workforce development programs designed to meet local and statewide needs; h. Adult literacy and other basic skills programs for adults; and i. Such other purposes as may be prescribed by the Texas Higher Education Coordinating Board or local governing boards in the best interest of postsecondary education in Texas. 8 Dallas County Community College District Board Priorities, Strategic Objectives and Illustrative Measures As a result of work involving President Emeritus Dave Ponitz and staff, reflecting the review and discussion of the DCCCD Trustees during work sessions in November and December 2013, it is proposed that the goals adopted in 2008 and presented as a part of BAA (Local) be revised into four major thematic arms suggested by the board, which are: student success, community engagement, institutional effectiveness and employee success. As evidenced by its mission, there can be no greater priority for the Dallas County Community College District than Student Success. The Board believes that this priority requires a critical commitment to meet the educational needs of Dallas County, while expecting students to take an empowered role in meeting success milestones. This work is demonstrated through: 1. Increasing participation in higher education for Dallas County — measured by: a) The Dallas County adult population enrolled in credit or continuing education. b) The Dallas County public high school graduates enrolled as credit students within one year of graduation. c) The unduplicated headcount in academic transfer, career/technical, and developmental courses. 2. Improving student learning success — measured by: a) Grades of A, B, or C in transfer, career technical, and development courses. b) Students completing the DCCCD core curriculum annually. c) Persistence in attendance from fall to fall, and fall to spring. d) Graduates as represented by "Closing the Gaps" segments (Associate Degrees and Certificates) annually. e) Transferring students with 15 hours or more earned at the DCCCD. 3. Participating in initiatives that result in student success advancement as identified in varying national frameworks — measured by: a) Graduates per academic year, with degree or certificate. b) Successful completion of developmental math, reading and/or writing, and subsequent success in movement to college-level courses. c) Successful completion of common "gatekeeper" courses. To effectively carry out the charge as a tax- and tuition-based educational entity, representing a diverse community of voting citizens and students — and recognizing the positive economic impacts that the Dallas County Community College District makes in the county, the Board is committal to Community Engagement, demonstrated through: 4. Increasing workforce readiness to enhance the economy and competitive advantage of Dallas County and the North Texas region — measured by: a) Unduplicated headcount in career/technical credit and continuing education. b) Career/technical degrees and certificates awarded annually. 5. Identifying dynamic partnerships in support of student success, which encourage cooperation between public and private businesses, other education providers, other government agencies, and the citizens of the county — measured by: a) External funding in specialized programs (i .e. STEM, Health Resources, Workforce Initiatives). b) Advances in health-care partnerships i.e., Texas Health Resources, Methodist Medical System and Baylor Healthcare). c) Early college high school partnerships. d) Articulated college and ISD educational programs. e) Community-based collaborative programs (i.e. H .I.S. BridgeBuiIders, Dallas Firefighters Museum, Dallas Urban League). 6. Demonstrating institutional commitment to serve the community through sound and transparent fiscal policies and practices — measured by: a) Reimbursable contact hours. b) Debt ratings. c) Expendable fund balance meeting parameters. d) Annual unqualified external audit opinions. e) Internal controls and reporting in support of corrective action and/or training as appropriate. f) Investment management based on Board-approved parameters. The Board recognizes the external challenges presented by state and federal program requirements and funding decreases, and exercises careful management of those local fiscal decisions that are required. The Board is committed to the continuous improvement of Institutional Effectiveness, demonstrated through: 7. Improving efficiency and effectiveness in resource measured by: a) The review of key processes to identify improvements in results, timing and cost. 8. Promoting sustainable practices with positive impacts on social, environmental and economic vitality — measured by: a) Consumption of electricity, natural gas, and water. b) Number of students participating in service learning. Finally, the Board is committed to providing a work environment that supports Employee Success, as a foundation to meet the varying needs of the students who enroll with the Dallas County Community College District, demonstrated through: 9. Providing a diverse array of models and mentors as a part of the DCCCD workforce — measured by: a) Ethnicity of faculty, administrators and professional support staff. 10. Improving employee engagement and effectiveness — measured by: a) Completion of minimum DCCCD professional development requirements. b) Educational stipends by employee group. c) Faculty reclassification based on educational advancement. d) Periodic surveys to assess work climate. 9 Brookhaven College 2018: Strategic Goals & Values 1. Maximize student success for all students 1.1 Increase participation in higher education within our service area 1.2 Improve student learning 1.3 Participate in and lead initiatives that advance student success 2. Recruit, retain, support and develop successful employees 2.1 Provide a diverse and strategic array of professional development opportunities for our employees 2.2 Compose and implement employment policies, procedures and pathways which facilitate employee success 3. Optimize institutional effectiveness and commit to sustainability 3.1 Promote efficiency and effectiveness of human, capital and fiscal resources 3.2 Design an organizational structure with the capacity to support and carry out the strategic goals of Brookhaven College 2018 3.3 Promote sustainable practices with positive impacts on learning and social, environmental and economic vitality 4. Cultivate mutually beneficial college/community partnerships and relationships 4.1 Increase workforce readiness to enhance the economy and competitive advantage of North Texas and beyond 4.2 Identify and develop dynamic partnerships in support of our mission, which encourage cooperation between the college and public and private businesses, other education providers, government agencies, and the citizens of our community 4.3 Demonstrate individual and institutional commitment to serve the community through sound and transparent policies and practices Values As members of the Brookhaven College community, we hold the following values: • Learning • Diversity • Service • Integrity • Excellence Brookhaven College Organization and Planning Leaders Planning Workgroup Accounting Planning Leader McCoy, Clarice , Faculty-‐Business Studies Administrative, Educational Technology & College Services Admissions/Registrar Deason, Michael , Director of Information Technology Vo, Thoa , Director of Admissions Dalton, Brenda , Executive Dean of Student and Enrollment Services Jacobs, Greg , Faculty-‐Social Science Ehrich, Lisa , Faculty-‐School of the Arts Meyer, Mark , Dean of Health Occupations and Nursing Levesque, Lynne , Director of Athletics and Recreation Jones, Donald , Faculty-‐Automotive Technology Mason, Peggy , Faculty-‐Math and Science Gamble, Melanie , Outreach & Recruitment Coordinator Attner, Raymond , Faculty-‐Business Studies Martin, Deanie , Accountant, Accounts Receivable Supervisor Herring, George T. , Vice President of Business Services Wyche, Sandy , Executive Dean of Business Studies Klingensmith, John , Police Lieutenant Advising Center Anthropology Art Associate Degree Nursing Athletics and Intramural Sports Automotive Technology Division Biology Brookhaven College Geotechnology Institute Business Instruction Programs Business Office Business Services Business Studies Division Campus Police Lynch, Marilyn , Associate Vice-‐President of Career and Program Resources Wilson, Annette , Director of Career Services Bambrough, Claire , Faculty-‐Math and Science Castro, Johnny , Faculty-‐Health and Human Services Vaglienti, Kendra , Executive Dean, Communications Division Cadenhead, Charles , Faculty-‐Business Studies Fleming, Delryn , Faculty-‐Communications Jacobs, Greg , Faculty-‐Social Science Meersman, Key , Faculty-‐School of the Arts Simmons, Russell , Faculty-‐Math and Science Mannering, Monique , Faculty-‐Communications Warnberg, Charlie , Department Assistant Zandvliet, Inske , Faculty-‐Business Studies Ferguson, Sarah , Executive Dean of Educational Resources Stadthagen, Alex , EMS Program Director Carlos, Hazel , Faculty-‐Communications Career and Program Resources Career Services Chemistry Child Development Communications Division Computer Information Technology Core-‐Student Learning Outcomes Committee Criminal Justice Dance Developmental Math Developmental Reading Developmental Writing Economics Educational Resources Division Emergency Medical Services English 15 Facilities Services and Operations Financial Aid Bennett, Rodger , Vice-‐President of Academic Affairs and Student Success Chaney, Andrea , Faculty-‐World Languages Gallegos, Thomas , Director of Facilities Management Wells, John , Director of Financial Aid Foreign Languages -‐ Spanish, German, Italian and Other Languages Geographic Information Systems McClung, Brian , Faculty-‐World Languages Sires, J. Scott , Faculty-‐Math and Science Geography Geology Government Govea, Sam , Executive Dean, Social Science and Distance Learning Reinke, Susan , Lab Coordinator Hayaud-‐Din, Ahad , Faculty-‐Social Science Health and Human Services Division Health Center History Flint PhD, RN, FNP-‐C, Juanita Zapata , Executive Dean of Health and Human Services Kelley, Mildred , College Nurse Dudlo, Edward , Faculty-‐Social Science Human Development Govea, Sam , Executive Dean, Social Science and Distance Learning Human Resources/Professional Development and Training Humanities Edrich, Teresa , Executive Director of Human Resources Cuellar-‐McGuire, Adrien , Faculty-‐School of the Arts Enrollment Management Committee ESOL -‐ English for Speakers of Other Languages Instruction Journalism Learning Frameworks -‐ EDUC 1300 Library LRC-‐Audio Visual Management Bennett, Rodger , Vice-‐President of Academic Affairs and Student Success Neal, John , Faculty-‐Business Studies Rowe, Elizabeth , Faculty-‐Health and Human Services Ferguson, Sarah , Executive Dean of Educational Resources Ferguson, Sarah , Executive Dean of Educational Resources Avera, Mary Lou , Faculty-‐Business Studies Multicultural Services Music Office of Program Development and Renewal Office of Student Life Danforth, Meridith , Assistant Director, Marketing and Public Information Rousey, Doris , Executive Dean of Math and Science Simmons, Russell , Faculty-‐Math and Science Lau, Lai Ping , Assistant Director, Multicultural Center Gutierrez, Octavio , Faculty-‐School of the Arts Truong, Ngoc , Instructional Designer Borski, Brian , Director of Student Life Office Technology/Medical Front Office Burton, Sharon , Faculty-‐Business Studies/Medical Front Office Online Instruction Strategic Task Force Philosophy Govea, Sam , Executive Dean, Social Science and Distance Learning Scott, Jerrod , Faculty-‐Social Science Marketing and Public Information Math/Science Division Mathematics Photography-‐Journalism-‐Student Publications Physical and General Science Rodrigue, Daniel , Faculty -‐ Photography-‐Journalism Sidhwa, Anahita , Faculty-‐Math and Science Physical Education and Nutrition Physics and Astronomy Hernandez, Gregorio , Faculty/Division Chair-‐ Physical Education Sidhwa, Anahita , Faculty-‐Math and Science Planning, Research, and Institutional Effectiveness President's Office Dennehy, Michael , Associate Vice President, Planning, Research and Institutional Effectiveness Chesney, Thom , President Professional Development and Training -‐ Reactivated 2/27/12 Program Improvement Committee Psychology QEP -‐ Reading: The App for Life Radiological Technology Religion Rising Star Program School Alliance and Institutional Outreach School of the Arts Service-‐Learning Lancaster, Shirley , Learning Specialist, Professional Development Attner, Raymond , Faculty-‐Business Studies Sigsbee, Bill , Faculty-‐Psychology Masters, Anna , Director, Quality Enhancement Program Carter, Christi , Program Director -‐ Radiologic Science Scott, Jerrod , Faculty-‐Social Science Waggoner, Vincent , Rising Star Program Coordinator Kaplan, Jean , College Director of School Alliance and Institutional Outreach Maxwell, Richard , Dean of Fine arts and Physical Education Deibert, Andrew , Program Services Specialist Strategic Space Planning Committee Student Government Student Organizations Govea, Sam , Executive Dean, Social Science and Distance Learning Jacobs, Greg , Faculty-‐Social Science Perez, Julie , Faculty-‐Communications Ferguson, Sarah , Executive Dean of Educational Resources Borski, Brian , Director of Student Life Borski, Brian , Director of Student Life Student Orientation Dalton, Brenda , Executive Dean of Student and Enrollment Services Student Services and Enrollment Management Student Support Services Students 50+ Program Testing Center Theatre Visual Communications Lopez, Oscar , Vice-‐President of Student Services and Enrollment Management Neu Menassa, Beverly , Professional Counselor Whaley-‐Stephenson, DeBorah , Senior Adult Advisor Clarke, Winifred , Director of Testing Error, Darise , Faculty-‐School of the Arts Polite, Giraud , Faculty-‐Business Studies Workforce and Continuing Education World Languages Division Hawkins, Vernon , Associate Vice-‐President of Workforce and Continuing Education Sisk, Grant , Associate Dean, World Languages Social Science Division Sociology, Criminal Justice and Anthropology Speech Office of Planning, Research and Institutional Effectiveness The mission of the Brookhaven College Office of Planning, Research and Institutional Effectiveness is to support the entire college in its efforts to conduct ongoing, integrated and institution-wide, research-based planning and evaluation processes. These research-based processes should be focused on continuing improvement in institutional quality and also demonstrate the institution is effectively accomplishing its mission. http://www.BrookhavenCollege.edu/prie/ We offer the following services to the college. • • • • • • • • • • • Strategic Planning Online support for institutional reports statistical analysis Service-area mapping and analysis Historical data mining Demographic analysis of student enrollment Student cohort follow-up and longitudinal tracking for retention and success The annual college fact book Customized queries and reports Program and course evaluation studies Research design consultation Planning for institutional effectiveness Customized online survey design, scoring and reporting Please call on us if you have questions about planning, student learning outcomes or operational assessment, or need information extracted from the Datatel Colleague System. Requests for data must be submitted to the associate vice president using the Research Request Form located on the P: Drive at P:\FORMS\IR - please allow a minimum of two weeks for completion. Michael Dennehy, Ed.D. Associate Vice President, Planning, Research and Institutional Effectiveness 972-860-4607 Bldg. A, Room A231 [email protected] Yan Avram Director, Institutional Research 972-860-4811 Bldg. A, Room A232 [email protected] Jody Cunningham Researcher II 972-860-4103 [email protected] Bldg. A, Room A- 232 21 Office of Planning, Research and Institutional Effectiveness Strategic Planning Online Support Strategic Planning Online is specifically designed to help institutions automate the strategic planning, budgeting, and assessment cycle. The system can help colleges monitor achievement of strategic objectives, institutional outcomes, and accreditation requirements while ensuring that budgets are support the QEP effort. Follow this link to login to the SPOL system to enter workgroup strategic and operational plans. https://bhc.strategicplanningonline.com/spolnet/default.aspx SPOL is a document and reporting management system that requires the Internet Explorer web browser versions 8 or 9. Please do not use any other browser and compatibility mode is not longer required in SPOL 4.1. SPOL system users must use their Novell login and password established during training to login the planning system. Any user needing a password reset can do so from the main screen as indicated above by clicking on the “Forgot My Password...Click Here” link. SPOL technical support will be provided by the Office of Planning, Research and Institutional Effectiveness. 22 Questions to ask when planning What are you going to do? Why are you going to do it? How are you going to do it? How will you know that you’ve been successful? Do you need any additional money? Do you need help from anyone else? What are you going to do? Objective -Written so that it is specific, measurable, action-oriented, results-driven, and time limited (SMART) Objective Title -The “nutshell” version of the objective – short and descriptive Why are you going to do it? Objective Purpose - What kind of objective is it? What purpose does it serve? College Goals - Which goal(s) does the objective support or advance? Objective Types - There may be a number of underlying reasons for this objective... which reason(s) best fits? Planning Priorities - Does this objective support some part(s) of the college’s mission and/or the Brookhaven College Strategic Directions 2008-2013. How are you going to do it? Tasks - List the many things that must be accomplished to achieve the overall objective. These might be steps to follow in an action plan or more finely defined outcomes that add up to the overall outcome. Due Date - Do you have target dates for achieving these tasks that will keep you on track? How will you know that you’ve been successful? Assessment Measures - You might list the performance targets you hope to meet, the measurement tools that you will use, and/or the methodologies you will employ to gather data. These can be tied to the overall objective, specific tasks or both. Do you need any additional money? Enhanced Budget - You can ask for new money for each task to be considered during the spring budget development period. Do you need help from anyone else? Workgroup Units Impacted - Identify any other planning units that must provide you with resources for you to be successful in achieving your objective. That may mean that someone from that office will spend time working on something that you submit to them, assisting you in developing or installing something, or providing you with a product; or another department may need to purchase something on your behalf. 23 Student Learning Outcomes Guiding Questions 1. How are your stated student learning outcomes appropriate to your mission, programs, degrees, students and other stakeholders? How explicitly do major institutional statements (mission, vision, goals) address student learning? • How well do the student learning outcomes of programs and majors align with the institutional mission? How well do the student learning outcomes of general education and co-‐curricular activities align with the institutional mission? • How well do course-‐based student learning outcomes align with institutional mission and program outcomes? • How well integrated are assessment practices in courses, services, and co-‐curricular activities? • How a re t he m easures o f t he a chievement o f s tudent l earning o utcomes e stablished? • How w ell a re t hey u nderstood? 2. W hat evidence do you have that students achieve your stated learning outcomes? • Who actually measures the achievement of student learning outcomes? • At what points in the curriculum or co-‐curricular activities are essential institutional (including general education), major; or program outcomes assessed? • How is evidence of student learning collected? • How extensive is the collection of evidence? 3. In what ways do you analyze and use evidence of student learning? • Who analyzes the evidence? • What is your evidence telling you about student learning? • What systems are in place to ensure that conclusions are drawn and actions taken on the basis of the analysis of evidence? • How is evidence of the achievement of student learning outcomes incorporated into institutional planning and budgeting? 4. How do you ensure shared responsibility for student learning and assessment of student learning? • How well integrated are assessment practices in courses, services, and co-‐curricular activities? • Who is responsible for the collection of evidence? • How cross-‐functional (i.e., involving instructional faculty, Student Affairs, institutional Research, and/or relevant administrators) are the processes for gathering, analyzing, and using evidence of student learning? • How are the results of the assessment process communicated to stakeholders inside and outside the institution? 5. How do you evaluate and improve the effectiveness of your efforts to assess and improve student learning? • What is the quality of the information you have collected telling you about your assessment processes as well as the quality of the evidence? • How d o y ou k now h ow w ell y our a ssessment p lan i s w orking? 6. In what ways do you inform the public about what students learn—and how well they learn it? • To what internal stakeholders do you provide information about student learning? • What is the nature of that information? To what external stakeholders do you provide information about student learning? What is the nature of that information? Source: U sed w ith p ermission a nd a dopted f rom t he U niversity o f N orth T exas – O ffice o f I nstitutional Effectiveness 1 -‐16-‐2013 • • Outcomes and Assessment at Brookhaven College Principles and Guidelines Brookhaven College is dedicated to student success in quality educational programs. To determine if it is meeting this objective, the college participates in multidimensional, integrated, ongoing measurements of student learning. The college recognizes the students’ interest in receiving comparable outcomes from a course regardless of mode of instruction or instructor. To that end, faculty have the responsibility of: • integrating student learning outcomes into each course, • teaching information to help students achieve those outcomes, and • assessing the extent to which students have achieved those outcomes. Faculty members develop their courses with student success in mind. They put the learning objectives for the course in the syllabus and create exams, assignments or experiences to measure whether students are learning. Assessment measurements need to be systematic, quantifiable, valid and reliable. These assessments provide both student and professors with valuable information allowing each to identify areas of strength, weakness and needed improvement. The ultimate goal of faculty-developed outcomes assessment is to provide data to improve instruction. In addition to individual course outcomes, the college develops and assesses global general education objectives in accordance with the Texas Higher Education Coordinating Board and the requirements of the Southern Association of Colleges and Schools Commission on Colleges. The Student Learning Outcomes Assessment Committee assists the college in designing, implementing, and reporting these assessment measures for the educational objectives within the Core Curriculum and career and technical programs. The college is committed to having students attain skills in critical thinking, communication, empirical and quantitative reasoning, team-work, and social and personal responsibility. Please call on me if you have any questions about student learning outcomes. Delryn Fleming, Faculty, English/Speech [email protected] 972-860-4772 24 Office of Business Services The Office of Business Services is committed to supporting the mission of DCCCD and Brookhaven College by striving for excellence in providing quality service to students, employees and the community. Please call on us if you have questions about budget related matters such as budget development, budget adjustments or monthly budget reports. George T. Herring Vice President, Business Services 972-860- 4634 [email protected] Bldg. A, Room A-211 Dawn Bishop Assistant to the Vice President of Business Services 972-860-4634 [email protected] Bldg. A, Room A-212 All cost center managers should plan to attend a budget development workshop with the Office of Business Services in the spring semester of each year to receive updates and instructions on the annual budget development process. 25 College Revenue Allocation Formula A brief historical perspective of the DCCCD explains the rationale for using a revenue allocation formula. More than 25 years ago, the DCCCD was constituted as one legal entity to consist of seven colleges, approximately equidistant from each other, and a systems office to give leadership, coordination and accountability to the public. The colleges were opened more sequentially than simultaneously and the process for budget development evolved with the district through its formative, high growth years. In the earliest years, El Centro was the only college and the budget was developed by people asking for what they wanted. After Eastfield, Mountain View and Richland colleges opened, decisions about how to allocate resources became much more complex and time-consuming. District personnel could not maintain the same depth of knowledge for four colleges as they had had for one, and college personnel were forced, because of the structure of the process, into a competitive posture. At about the same time Cedar Valley, North Lake and Brookhaven were opening, the budget allocation formula was being developed as a solution. The allocation was implemented for the 1979-80 fiscal year. The revenue allocation formula is the method used by the DCCCD to distribute educational and general revenue equitably among the colleges. The formula coupled with the ability of the colleges to carryover unused funds from one year to the next, is believed to meet these objectives: • introduces higher levels of objectivity and accountability into the budget development process by reducing the number of “judgment calls” made at the District level, • provides college managers with more control, responsibility and authority for the financial management of their institutions, and • provides college managers with the advantage of longer-range planning by making the bottom-line amount known at the beginning of the budget development process. The formula is a combination of flat rates, which are advantageous to the smaller colleges, and proportionate rates, which are advantageous to all colleges. The district has an obligation to all its constituents, and the flat rates are included to insure the demographics in a particular region of the county --such as population density and percent of first generation colleges students-- do not adversely affect the quality of education offered there. The formula is not judged to be perfect, but it has proved to be the best solution for the problem of competing interests for the same dollar. The basic formula has three components - the Base Allocation, Recurring Items and Nonrecurring Items. Much of the original data is provided by the colleges through the Vice Presidents of Business Services. The VPBS’s provide enrollment and income projections. The remainder of the information--state funding, local taxes, Interest income, etc--is gathered by the District Budget office. After compiling and reviewing all the pertinent revenue data, the Vice Chancellor of Business Affairs determines the amount available (the “pot”) for the allocation. 26 BASE ALLOCATION The Base Allocation is made up of four primary components - the Fixed Allocation, the Maintenance Allowance, State Funding Allocation and Salary Adjustments. 1. FIXED ALLOCATION - a flat rate which recognizes fixed costs at each college It has been increased when the inflation rate has exceeded what can be reasonably absorbed. The Consumer Price Index (CPI) is the major reference for making a decision to increase the fixed allocation. 2. MAINTENANCE ALLOWANCE- a proportionate rate that recognizes the need for an allowance to cover normal wear and tear on the facility brought on by the number of students and the size of each facility There is a rate for enrollment (contact hours) and a rate for size of the facility (square footage). The maintenance allowance is not intended to reflect utility costs or other routine expenses associated with the facility itself. Landscaping - A flat rate of $125,000 per college. 3. STATE FUNDING- a proportionate rate, based on each college’s actual contact hours multiplied by approved reimbursement rates The DCCCD uses the prior calendar year’s actual contact hours as the basis for the allocation (example: the 2012-2013 allocation uses calendar 2011 actual contact hours.) 4. SALARY ADJUSTMENTS- amounts to cover the current year’s approved cost of living adjustments, schedule changes and/or general salary increases are added to each college’s allocation In addition, each college gets to keep the total amount of the previous year’s approved salary increase for one year. The previous year’s amount is then added into the base formula. RECURRING ITEMS When the allocation was being developed, its authors recognized that there were certain items that occurred on an annual basis, were the result of decisions made by each college and/or were beyond the control of each college. As a result, the second component of the allocation was developed to cover these so-called recurring Items. Recurring items are made up of two components - Recurring Staff Benefits and Local College Income. 1. RECURRING STAFF BENEFITS Decisions concerning staff benefits are made at the district level for efficiency and to take advantage of economies of scale. Estimated amounts for staff benefits for each college are added to the allocation initially and later adjusted to actual. 2. LOCAL COLLEGE INCOME Local college income in the form of continuing education, other charges, miscellaneous income and work study income are revenues considered to be under control of each college and subject to its decisions. This revenue is initially allocated back to each college based on their estimates and later adjusted to actual. NON-RECURRING ITEMS After the district implemented the allocation formula, it became apparent there would be unique or special items that would occur from time to time that did not fit into any of the other allocation components. These kinds of items generally lasted for a year or two and often did not affect all seven colleges. The district adopted a method of handling these unique items by considering them non-recurring items and placing them in separate section of the allocation. This has proven to be a very effective method for distributing and tracking these funds. The district also allows each college to designate an amount each year to cover commitments (encumbrances) made, but unfulfilled at year-end. Since the encumbered amount varies from year to year, it is placed in the non-recurring section. Funds used to cover encumbrances are charged against each college’s fund balance and cannot be used for any other purpose. COLLEGE FUND BALANCES At the end of each fiscal year, each college retains any unspent portion of its allocation in the form of a fund balance. Colleges may use their fund balances for non-recurring costs, e.g., capital improvements, remodeling, major deferred maintenance and major equipment replacement. Colleges may not use their fund balances for operating or recurring costs, e.g., salaries, supplies, utilities and other items that can be reasonably expected to recur on an annual basis. This practice was begun to discourage unnecessary end-of-year spending at the colleges just to deplete their budgets. All indications are that it is an effective financial management technique. In 2008, the colleges were required adopt the policy of keeping a minimum of three percent of their final allocation as the base amount in their fund balances. This practice was deemed necessary to insure the combined fund balances of the colleges and the district would meet the board’s guideline of maintaining a prudent amount of undesignated fund balance. As documented in Board Policy BAA, Board Legal Status, the guideline states that the district will maintain an amount equivalent to not less than four and not more than six months of operating expenses to ensure continuity in case of catastrophic loss and to maintain the most favorable credit ratings for financing debt. 28 27 In light of the recent economic situation, the District has revised this policy. Each college shall now target a minimum fund balance of 5% of their final allocation. This practice became effective in fiscal 2010. Distribution of Contact Hours in the Allocation Each college receives 100 percent of their certified Academic, Technical and Continuing Education contact hours as found on the CBM-004 and CBM-00C Coordinating Reports. There is one exception to this practice that pertains to any Home/Host Agreements in place with another college. The Hosting college is only entitled to the agreed upon percentage of contact hours generated per the Home/Host Agreement (i.e. 50/50, 60/40, 70/30/ 80/20, etc.) Since the concept of Home/Host is unique to the DCCCD and not recognized by the THECB, the CBM004 report does not split Hosted courses to a Host campus’ certified report. The only readily available source for identifying Hosted hours is found in the DCCCD’s Anticipated Reimbursement report. The Anticipated Reimbursement Report is run each semester just after the 17th class day in Fall and Spring and just after the 9th class day in Summer. It reports any Hosted hours for a given location. The District Budget Office uses the Hosted hours listed on the Anticipated Reimbursement report to calculate the contact hour split between the Home and the Hosting location. The Hosting college receives their agreed upon percentage of Hosted contact hours based on what is listed in the Anticipated Reimbursement report. That amount is deducted from the final, certified contact hour total for Home college for the specific program identified in the Home/Host Agreement. It is the responsibility of both the Home and Hosting location to provide the District Budget Office with a copy of each Home/Host Agreement. 29 Cycle of Allocations The revenue allocation is prepared and distributed at least four (4) times a year. The four versions are known as the Original Allocation, the Fall Allocation, the Spring Allocation and the Final Allocation. Each of the four versions are designed to provide the colleges with the most recent revenue estimates and are expressly intended to closely match expected annual expenditures. With each revision the college’s bottom-line budget may remain unchanged or increase or decrease accordingly. The four allocations are distinguished by the following characteristics: ORIGINAL ALLOCATION The Original Allocation is the most fundamental of all four allocations. It reflects both initial college and District revenue estimates. The formula portion of the Original Allocation is updated to reflect each college’s actual certified contact hours for the prior calendar year. For example: the 2010-2011 allocation uses calendar 2009 certified contact hours. Prior calendar year certified contact hours are used as the basis for the allocation because they represent the most recent performance by the college. Typically, the Original Allocation is published in March-April each year and coincides with the annual college budget build process. FALL ALLOCATION The Fall Allocation typically contains the most extensive number of adjustments and revisions of the four versions. In addition to the elements found in the Original Allocation, the Fall Allocation also includes carry forward encumbrances, carry forward requisitions, Board approved District funded salary increases, Fall revenue adjustments, updates to nonrecurring items and college use of fund balance. The Fall Allocation is typically published in early-to-mid October. It forms the basis for the Fall Budget Revision presented to the Board of Trustee’s Planning and Budget Committee meeting held in November. SPRING ALLOCATION The Spring Allocation contains the fewer adjustments and revisions than the Fall Allocation. It is usually limited to Spring revenue adjustments, updates to non-recurring items and a second opportunity for college use of fund balance. The Spring Allocation is typically published in late February. It forms the basis for the Spring Budget Revision presented to the Board of Trustee’s Planning and Budget Committee meeting held in April. FINAL ALLOCATION The Final Allocation contains the fewest revisions of the four allocations. It is updated to include each college’s final, actual local income and is updated for any end-of-year nonrecurring items. The Final Allocation is published in early October after the District has completed it year-end accounting process known as “13th month accounting”. The Final Allocation is measured against the college’s final actual expenditures. When total revenues exceed expenditures, the college closes (adds) funds to the fund balance. Since Board policy requires all District locations to operate with a balanced budget (e.g. revenues equal expenditures), a college closing a nominal amount to fund balance is acceptable. It is not acceptable for a college to overspend its allocation. If this occurs, the 30 college is required to present a plan to the district describing what steps it will take to bring expenditures back in line with its allocation. The college meets with senior district officials once a month for the following 12 months reporting on the progress of the plan. Comparative Budget Process The Dallas County Community College District utilizes a budgeting technique called the “Comparative Budget (CB)” to build its annual budgets. The CB is designed to provide consistency and continuity in the operational budgets from year to year. When implemented and managed properly, the CB process tends to eliminate large swings in the amounts allocated to operational cost center budgets each year. A well-managed CB process will tend to reduce or eliminate the anxiety budget managers often experience each year when the budget is built. After working with the CB process for a period of time, most cost center managers should be able to predict their projected CB for the coming year. The CB assumes that under normal operating conditions, most cost centers will be allocated a base budget amount equivalent to its previous year budget plus or minus adjustments for “non-recurring” items and other changes made since the budget was implemented. The most common adjustments include purchase amounts carried forward from the previous year, personnel changes and changes in internal amounts charged-back to the District. In addition, it is typical for the location’s CFO to perform a budget-toexpenditure analysis on each cost center every two to four years to verify the consistency between the budget and actual expenditures. This practice seeks to move the funds where they are actually being spent and helps to reduce the year end process of adjusting the budget known as the “sweep.” The CB budget process is a variation of the “incremental budgeting” technique. The incremental budgeting technique bases budgets on prior year expenditures and may add or subtract a percentage depending upon the projected revenue stream. This form of budgeting is suitable for organizations where each year is very similar to the previous one in terms of activities. The activities of a community college are a good fit for this type of budgeting. The district’s CB process differs slightly from traditional incremental budgeting technique. The district uses the previous year’s budget as the base rather than actual expenditures primarily to prevent one-time, non-recurring expenditures from becoming built into the budget. The other primary form of budgeting, the “zero based budget”, differs from the CB budget process in that it does not use past amounts as the starting point. This budget process starts from “scratch” with the proposed activities for upcoming year. Cost center managers have to re-justify their operations each year. This form of budgeting often produces a more detailed and accurate budget, but it takes considerably longer to prepare the budget. This technique is essential for new organizations and major projects. It tends to work best for dynamic organizations that are proactive in taking on new challenges. Although the CB budget uses prior year budget amounts as the starting point for future budgets, building the budget is a complicated and time-consuming task. The starting point for the budget is the identification of discretionary and non-discretionary items. Discretionary items are non-recurring in nature and do not represent fixed commitments in the budget each year. Typical discretionary items include travel, supplies and equipment. In contrast, non-discretionary items are fixed, recurring commitments that must be covered by the institution each year until the commitment ends. Typical non32 31 discretionary items include salaries, utilities, contracts, staff benefits and liability insurance. About 73 percent of Brookhaven’s $37,758,974 budget for 2013 is encumbered with fulltime and part-time employee salaries totaling $27,644,709. Each of the current 400 full-time employee salaries must be reviewed and verified when the budget is built. Any new or other personnel changes must be accounted for when the CB is developed. Enrollment trends must be analyzed and a provision for growth potential must be also factored in the CB. As the single largest item in the budget, DCCCD policy does not permit salary budgets to be redeployed for other purposes without approval from the location’s CFO. In addition to salaries, about 12 percent of the budget or $4,486,214 is encumbered each year in non-discretionary Staff Benefits, District Service Charge-backs, Liability Insurance and Mandatory Debt Service Transfers. Another 8.57 percent of the budget or $3,241,329 is encumbered in recurring non-discretionary operational commitments such as utilities, service contracts, telephones, advertising, leased space, testing services, software licenses, credit card fees and library acquisitions. In total, just over 93.5 percent or $35,372,252 of the $37,758,974 operating budget is encumbered in non-discretionary commitments each year. The budget staff spends considerable time analyzing and verifying these items each year when the CB is developed. The remaining 6.46 percent or $2,441,722 of the budget is allocated for discretionary items. Discretionary items included in this amount are purchased services, repairs, travel, supplies and equipment. $482,500 of this total (1.28 percent of the total budget) represents the current amount of budget set aside each year for the purchase of equipment and technology. Even though these items do not represent fixed commitments to the college, they are not typically “up for grabs” each year. They are subject to the CB process, which uses the prior year budget amount as the basis for the new budget. However, cost center managers have more flexibility within their budgets with these funds. In tight budget times, discretionary items are usually the first to be considered as places to reduce expenses to balance the budget. The comparative budget process has served the district and the colleges very well over the years. It has been an effective method for maintaining consistency and continuity in the operational budgets from year to year. Building the Annual Budget Building the annual budget is both a complicated and lengthy job. Colleges in the DCCCD usually spend as much as six months each planning and building their annual budgets. The process begins in the fall when the Vice Presidents of Business Services submit revenue and contact hour projects to the District’s Budget Office. Those projections are combined and used by the District to produce the College Allocation. The College Allocation provides each location with a defined bottom line from which they build and balance their budgets. Please see the document titled “The College Allocation” for a complete history and description of that process. Brookhaven’s budget is built to conform to the various elements required by both the district and coordinating board. Its structure is defined by funds, functional areas, cost centers, subclasses of expenditures and account numbers. The college primarily operates 33 using two funds. Both are known as Current Funds. They are defined as being available for current operating and maintenance purposes. Fund 11 or the Unrestricted Current Fund is the primary operating fund. This fund is used to carry out the primary purpose of the college, i.e., educational, student services, extension, administration and maintenance of the facilities. Fund 12 or the Auxiliary Enterprise Fund funds activities that serve students, faculty, or staff for charges that are directly related to, although not necessarily equal to, the cost of the service. Examples are food service and the book store. Brookhaven’s Fund 11 budget currently totals $37,758,974 and contains 1,799 line items. There are 123 cost centers with budgets each with an average of 14 line items. Brookhaven’s Fund 12 budget currently totals $1,165,728 and contains 202 items. There are 25 cost centers with budgets each with an average of eight (8) line items. Each cost center may contain some or all of the following account categories: Salaries, Staff Benefits, Purchased Services, Operating Expenses, Supplies, Equipment, Mandatory Transfers and Reserves. Fund Balance Practice for Colleges PURPOSE AND SCOPE The general purpose of this practice is to sustain the district’s financial stability against emergencies and economic downturns by establishing parameters for college fund balances. This practice encompasses the minimum required fund balance reserves, the allowable uses of fund balance reserves and establishes a timeframe for returning levels to those recommended when an emergency use has occurred. DEFINITIONS For purposes of this practice, fund balance will refer to the accumulated equity balance in each college’s unrestricted and auxiliary funds resulting from operations over the years. TARGET GOAL Each college shall target a minimum fund balance of 5 percent of its allocation in the unrestricted fund and 5 percent of auxiliary fund expenditures or a combination that results in 5 percent of the two funds together as measured at the end of each fiscal year. This minimum fund balance shall be preserved as much as possible to provide financial stability for the college in economically difficult times as well as provide funds availability for emergency purchases. Targeted savings to fund balance for planned future uses by each college should exceed the 5 percent minimum fund balance. REPLENISHMENTOF OVEREXPENDED FUND BALANCE Should the targeted fund balance amount fall below the 5 percent level because of emergency use, the college must approve and adopt a plan to restore this balance to the target level within 18 months. If restoration of the fund balance minimum cannot be accomplished within such period without severe hardship to the college, then the college should notify District Business Affairs. 34 ALLOWABLE USES OF FUND BALANCE Allowable uses of fund balance are limited to the following: Emergency needs One-time purchases Start-up costs for a new program (or campus) Requests for use of fund balance should continue to be directed to the Executive Vice Chancellor of Business Affairs for approval prior to making expenditures from fund balance. 35 Planning and Budget Committee Distributed: P&B - 10/26/2011 EXHIBIT #1 CHARGE > The Planning and Budget Committee (PBC) will function as a strategic planning committee making recommendations to the college president. > The PBC will discuss and recommend financial plans and strategies that advance the college's vision, mission, goals and strategic plan. Approved plans and strategies will be used in the general formation of the annual budget, as planning tools for future initiatives and to strengthen the college’s overall financial position. > PBC members will be expected to gain an understanding of the long-term impact of financial decisions and strategies. TYPE OF COMMITTEE > An annual, strategic planning and recommending committee that is charged with the responsibility of making recommendations to the college president. WHAT NOT TO WORK ON > The committee will not work at a level of detail that determines specific cost center budget amounts. > Anything else not specified in this charter. If the charge proves incomplete, the committee may propose amendments to the charge to the college president. OPERATIONAL PROCEDURE > The PBC will be scheduled to meet at least six (6) times throughout each fiscal year. > The agenda and meeting materials will be distributed to committee members in advance of each meeting. > Minutes from committee meetings will be distributed to the college soon after each meeting. > Approved financial plans and strategies will be posted on the college website. COMMITTEE RESOURCES > Financial and budgetary data from the district’s Colleague system. > Non-financial college data from the district’s Colleague system. > Certified enrollment data from the coordinating board. > Board guidelines and/or directives. > Directives from District Business Affairs or the Chancellor’s Office. > Other sources of relevant and verifiable data as necessary. COMMITTEE MEMBERS 1) President, Co-chair 2) Vice President for Business Services, Co-chair 3) Vice President for Academic Affairs and Student Success 4) Vice President for Student Services and Enrollment Management 5) Academic Division Dean 6) Faculty Association President 7) Faculty Association Vice President 8) Professional Support Staff President 9) Professional Support Staff Vice President 10) Administrative Council President 11) Student Representative Ex officio members: 12) Associate Vice President for Planning, Research and Institutional Effectiveness 13) College Financial Manager 36 Brookhaven College Planning and Budget Committee Strategic Assumptions Distributed: P&B - 10/26/2011 EXHIBIT #2 FUNDS AVAILABLE FOR THE STRATEGIC AND OPERATIONAL PLANS > Funding allocated to Instructional and Non-instructional Strategic and Operational Plans > Funding allocated for equipment within current year funds > Funding applied to prioritized Strategic and Operational Plans COLLEGE BUDGET BALANCED TO THE ALLOCATION – NO DEFICITS > Funding allocated for enrollment growth > Funding allocated for Student and Support Services > Funding allocated to establish flexibility in the budget > Each area has a “real” budget; i.e. salaries, supplies and encumbrances, which are budgeted using the District’s comparative budget process each year. COLLEGE FUND BALANCE > Fund 11 Fund Balance to be kept at a minimum of 5 percent of the allocation as required by the District’s Fund Balance Practice for Colleges. > Fund 12 Fund Balance to be kept at a minimum of 5 percent of the allocation as required by the District’s Fund Balance Practice for Colleges. VISITING SCHOLARS > The college will consider district-funded visiting scholar positions along side of all other full-time faculty requests. The college will not exceed hiring a maximum of six districtfunded, visiting scholar positions and have no more than three of the six visiting scholar positions becoming eligible for a full-time position each year. > At the end of the second year, visiting scholar positions will be considered for funding as a permanent position equally among all other full-time personnel requests in the instructional area. 37 Planning and Budget Committee Definition and Use of Lag Dollars DEFINITION > Lag salary dollars are the portion of a specific, encumbered salary that is not spent for that salary during a fiscal year. While lag dollars are the result of personnel changes that occur each year, they are extremely variable and cannot be counted on as a dependable, ongoing source of funding. > There are two types of lag salary dollars that may be realized by an organization during a given fiscal year: (1) Dollars that accumulate between the time an employee leaves the organization and the position is refilled. (2) Dollars that are realized when a position is filled at the minimum starting range following the separation of an employee making more than the minimum starting range. > As a matter of standard district budgetary policy, salary dollars are not redistributed for other purposes until all salary obligations are 100 percent covered during a fiscal year. Salary dollars, like all funded dollars, are assigned to operating units based on the current needs of the operation. All budgetary dollars are subject to reassignment based on changing needs, obligations or other institutional decisions. > The chief financial officer at each location is responsible for the fiscal accountability of the college. TYPICAL USES of LAG SALARY DOLLARS • Funds all salaries deficit salary obligations in general • Funds the vacation pay off when an employee leaves the college • Funds reclassifications and/or other approved changes in employee salaries • Funds the difference between the advertised starting salary and actual starting salary • Funds the difference in the various PT budgets to actual annual expenditures • Funds the cost of living increase differential for faculty formula • Funds non-recurring or unforeseen staffing needs during a fiscal year 38 GLOSSARY FUND GROUPS Current funds: Funds available for current operating and maintenance purposes as well as those restricted by donors and other outside agencies for specific operating purposes. Current funds are segregated into separately balanced fund groups. Unrestricted current funds: Funds that have no limitation or stipulations placed on them by external agencies or donors. The funds are used for carrying out the primary purpose of the district, i.e., educational, student services, extension, administration and maintenance of facilities. Auxiliary enterprises: Funds for activities that serve students, faculty, or staff for charges that are directly related to, although not necessarily equal to, the cost of the service. Examples are food services and bookstores. The state of Texas expects auxiliary enterprises to be self-supporting on a perpetual basis. Restricted current funds: Funds available for current purposes but with restrictions from outside agencies or persons. Revenues are reported only to the extent of expenditures for the current year. Plant funds: Plant funds are divided into three separately balanced fund groups. Unexpended: Funds for the construction, rehabilitation, and acquisition of physical properties for institutional purposes. Retirement of indebtedness: Funds accumulated to meet debt service charges and the retirement of indebtedness. Investment in plant: Funds already expended for plant properties. Physical properties are stated at cost at the date of acquisition or fair market value at the date of donation for gifts. Depreciation on physical plant and equipment is recorded. Loan funds: Funds available for loan to students. Agency funds: Funds held by the district as custodial or fiscal agent for students, faculty members, and/or others. Quasi-endowment and similar funds: Funds subject to certain board-designated restrictions. 39 FUNCTIONAL AREAS OF EXPENDITURES Instruction: Salaries, wages, supplies, travel, office furniture, equipment and other expenses for the operation of general academic and technical/vocational instructional departments Public service: All costs of activities designed primarily to serve the general public, including correspondence courses, adult study courses, public lectures, workshops, institutes, and similar activities Academic support: Library — Salaries, wages, library materials (including books, journals, audiovisual media, computer-based information, manuscripts and other information sources), binding costs, equipment and other operating costs of the library Instructional Administration Expense — Salaries, wages, supplies, travel, equipment and other operating expense of the offices of academic deans or directors of major teaching department groupings Student services: Salaries, wages and all other costs associated with admissions and registration, student financial services (including financial aid), student recruitment and retention, testing and guidance, career placement services and other student services Institutional support: Salaries, wages and all other costs for the governance of the institution, executive direction and control, business and fiscal management, campus security, administrative data processing, central support services, purchasing and other general institutional activities Operation and maintenance of plant: Salaries, wages, supplies, travel, equipment, services and other operating expenses for physical plant administration services, building maintenance, custodial services, grounds maintenance, utilities and major repairs and rehabilitation of buildings and facilities Staff benefits: Premiums and costs toward staff benefit programs for employees. Examples of authorized staff benefits are group insurance premiums, workers’ compensation insurance, Medicare, retirement contributions and parking stipends. For reporting purposes, staff benefits are allocated over the functional areas based on salaries Scholarships and fellowships: Expenditures for student financial aid including waivers, scholarships, and state and federal financial assistance Auxiliary enterprises: Expenditures related to bookstore, food service, intercollegiate athletics, and Center for Educational Telecommunications operations 40 GLOSSARY OTHER FINANCIAL TERMS Audit of financial statements: Generally the expression of an opinion by the auditor that the financial statements present fairly in accord with certain standards, in all material respects the financial position of the organization being audited. It is not a determination of the presence or absence of fraud or deliberate misrepresentation Fraud: A false representation of a matter of fact that should have been disclosed, which deceives another so that he/she acts upon it to his/her injury GAAP: Generally accepted accounting principles - Rules, conventions, standards, and procedures that are widely accepted among accountants. GAAP doctrine is established by a combination of authoritative standards set by policy boards such as the Governmental Accounting Standards Board (GASB), an independent, self- regulating organization, and accounting practices developed over time that have become universally accepted as appropriate GASB 31: A pronouncement by the Governmental Accounting Standards Board that provided for dissolution of distinct differences between book and market values. It caused there to be a “mark to market” on a regular basis, with recognition of gains or losses contemporaneously by booking an unrealized gain or loss GASB 34 and 35: Pronouncements by the Governmental Accounting Standards Board that were implemented beginning with the August 31, 2002 audited financial statements. Implementation of the pronouncements changed wording of the auditor’s opinion, added a management’s discussion and analysis section, reformatted financial statement line items, presented a single consolidated funds column, added a cash flow statement, and made various changes to the footnotes Internal control: The system of business procedures that limits and may prevent access of individuals to misappropriate the funds of an organization. One example is a separation of duties between execution and recording of transactions Management letter: A letter, generally issued by external auditors, pointing out various findings that were noted in connection with the audit engagement. Often these items involve observed weaknesses in internal control Materiality: A state of relative importance. Strict adherence to any accounting principle is not required when the lack of adherence does not produce an error or misstatement sufficiently large as to influence a financial statement reader’s judgment of a given situation Repurchase agreement: Agreement between a seller and a buyer, usually of agency or treasury securities, where the seller agrees to repurchase the securities at an agreed upon price and date, A “flex-repo” allows periodic draws against the overall value without a complete repurchase of all principal values 41 Unrealized gain or loss: The amount of difference between market value and book value of securities recorded on the financial records of an entity. The amount is an unrealized gain if market value is higher than book value. If the market value is lower than the book value, an unrealized loss is recorded. The amount is unrealized until such time as the security or asset is actually sold by the investor, at which time the amount of difference between market and book values is realized. A security held to maturity will not ever realize a gain or loss. 42 Brookhaven College Planning and Budget Build Calendar for 2013-2014 Month Responsibility Planning and Evaluation Process Implementation of all new goals and objectives begins Fall SPOL Training - all planners will attend one SPOL workshop offered in the fall semester. SPOL Workshops offered all month Budget Building Process * August-September 2013-2014 September 2013 All Planning Leaders and Workgroups Planning Leaders and Workgroup Planners October 2013 Deans and Directors October 2013 VP’s and Workgroups November 2013 Planning & Budget November 2013 Planning Leaders and all Workgroup Planners December 2013 PCAB PCAB approves new faculty positions December 2013/ January 2014 Human Resources New faculty position advertised and search committees formed. January 2014 Planning Leaders February 24,2014 Planning & Budget February 28,2013 PCAB PCAB finalizes all staffing recommendations and communicates them to the college. February 28, 2013 VPBS March 7,2013 Planning Leaders and Workgroup Planners Determines college comparative budget in preparation for the annual budget build. Includes estimate of funds available for Technical and Capital funding requests. Updates operational worksheets in preparation for the budget build. All approved workgroup goals with Technical and Capital funding requirements due to VP thru the SPOL system. All workgroups produce fall SPOL status reports for all annual objectives and goals completed by this time. Spring SPOL Training - all Planning Leaders attend one SPOL workshop prior to planning new goals. All workgroups evaluate previous year’s plans and goals and begin development of new Strategic and Operational Plans for the next academic year 1. Final evaluations of completed annual plans conducted. 2. March 14,2013 All Deans’ and Directors’ workgroups work on and submit staff requests to Vice Presidents Develop prioritized new faculty and staff requests for coming academic year and submit to VPs 1. Planning & Budget conducts a review of all workgroup new faculty and staff positions. 2. Planning and Budget recommends new positions to PCAB for consideration All staff requests due to VPBS for compilation. Recommended PSS and Administrative staffing recommendations are presented to PCAB Deadline for new annual prioritized strategic and operational plans are entered into the SPOL system and reviewed by Deans and Directors All prioritized requests due in Budget office for funding analysis. Brookhaven College Planning and Budget Build Calendar for 2013-2013 Month Responsibility Planning and Evaluation Process Budget Building Process March 28,2013 VPBS March 31, 2013 Deans/Directors April 14,2013 Deans/Directors April 30, 2013 VP’s/Deans/Directors Operational budget worksheets due to VPBS. May 5,2013 VPBS Operational budget worksheets updated for final submission to DSC. May 20,2013 Planning, Research and Institutional Effectiveness May 30, 2013 VPBS June 6,2013 Deans/Directors June 13, 2013 VPBS June 20,2013 Deans/Directors July 30, 2013 Deans/Directors/Purchasing Department August-September 2014 VPBS Implementation begins for new workgroup goals not requiring new or additional funding. Review begins of all current and next year’s Workgroup Strategic and Operational Plans. Finalizes comparative budget and funds available for Technical and Capital funding requests upon receipt of College Allocation from the District. Prepares the Budget Build Assumptions and Guidelines Memorandum. Budget Build Memorandum and operational budget worksheets distributed for budget build. PCAB reviews summary of College Key Performance Indicators Report – Annual Strategic Directions review Identify funds availability for Strategic and Operational Plan requests by category in excess of operational requirements. Prioritize workgroup Technology and Capital Requests and submit to VPs Technical and Capital requests are received and final funding availability is confirmed to VP’s Requisitions for approved technology & equipment prepared and submitted with September delivery dates. Final preparation of Technology and Capital requisitions Budgets adjusted with technology, equipment, or other budget dollars as approved. *Some Budget Build dates are subject change as determined by receipt of the College Allocation from the District. Edition date: June 25, 2013
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