Document

Report
UCLA Budget Overview and Outlook
Presentation to the
UCLA Academic Senate
Seminar # 1: Uses of Campus Funds
October 23, 2012
1
Budgeting Overview

What is a budget?
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A financial plan including estimated costs, revenues and resources over a specified
period, reflecting a reading of future financial conditions and goals.
A budget serves also as:
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What are the major components of a budget?
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A plan of action for achieving quantified objectives.
A standard for measuring performance.
A device for coping with foreseeable adverse situations.
Operating budget – an estimate of revenue and expenses in support of current
operations. The planning horizon can vary, but an annual plan is typical.
Capital budget – A set of planned capital investments (plant and equipment), with
projected return on investment. The planning horizon is typically 5 to 10 years.
What is the difference between a budget and a financial statement?

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A budget is a plan.
A financial statement extracts data from the financial system to summarize past
financial results.
All the data presented today are from the financial system and payroll system.
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Some Key Terms

General Funds
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Core Funds
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Also known as 19900 funds.
The basic core operating fund supporting faculty, academic departments, and basic
university operations. Funded by state, tuition, non-resident tuition, and a portion of
research overhead dollars.
General Funds, other forms of student tuition and fees, and research overhead.
Non-Core Funds

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Other revenue sources earned from operating activities.
Earned by the UCLA Health System, housing, parking, athletics, sales & services
funds, gifts & endowments, et al.
3
Campus Expenditure Overview
What is our money spent on?
Who spends it?
4
General Fund Expenditures
$793 million in 2011-12
Operation and
Maintenance, $72
Student
Support, $3
Travel and
Entertainment, $4
Communications &
IT, $19
Supplies & Equipment,
$19
Services, $64
Faculty Ladder, $210
Benefits, $100
Other Faculty, $116
Staff, $188
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Expenditures made for
ladder and non-ladder
faculty salaries, staff
salaries, benefits, and
operating support for the
core academic mission
and basic operating
infrastructure.
All Funds Expenditures:
$5.9 Billion in 2011-12
Student Support, $321
Other, $172
Operations &
Maintenance, $265
Ladder
Faculty,
$339
Other Faculty,
$615
Services, $907
Travel &
Entertainment, $76
Communications &
IT, $123
Staff, $1,591
Supplies &
Equipment, $766
Benefits, $763
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Expenditures from all funds
includes all General Funds,
other non-General Fund
core revenues and noncore activities, such as
sponsored research and
the health system.
Expenditures by Category
2011-12
100%
90%
80%
Other
Student Support
70%
Operations & Maintenance
Salary & benefits
make up 56% of
total spending, but
78% of General
Fund spending
60%
50%
Services
Travel & Entertainment
Communications & IT
Materials & Supplies
40%
78%
Benefits
Career Staff
30%
56%
Temp Faculty
Ladder Faculty
20%
10%
0%
Total Funds
General Funds
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Operating Expenses -- All Funds 2011-12
$2.65 Billion
General Supplies
5%
Indirect Costs
7%
Student Support
12%
Scientific Supplies
16%
O&M
10%
Communications
2%
Travel &
Entertain
3%
Equipment
8%
Services
25%
Consultants/Temp.
9%
Info Tech
3%
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The largest
components of
services are patient
care subcontracted
by the Health System
and research
subcontracts.
Who Spends the Money?
General Fund Expenditures
2011-12: $793 million
Administrative Services,
$82
79% of General Fund
expenditures were
made by academic
units.
Campus
Operations
, $71
UCLA Healthcare, $13
College, $247
Academic Support,
$77
Other Academic
Units, $29
Health
Sciences Prof
Schools,
$114
General Campus Prof
Schools, $159
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Recent Expenditure Trends
Salaries and Wages
Employee Benefits
Operating Expenses
10
Spending on Academic Salaries
All funds, in millions
$1,200
$1,000
$185
$800
$177
$170
$600
$96
$176
$175
$105
$104
$102
$102
Acad Other
Acad Apprentice
Temp Faculty
Ladder Faculty
$400
$293
$326
$308
$329
$339
FY 2009-10
FY 2010-11
FY 2011-12
$245
$258
$267
$289
$305
FY 2007-08
FY 2008-09
$200
$-
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Spending on Staff Salaries
All funds, in millions
$1,800
$1,600
$117
$109
$1,400
$105
$1,200
$108
$96
$1,000
Non-career
$800
Career
$600
$400
$200
$1,178
$1,263
$1,267
$1,354
$1,474
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
$-
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Average Annual Growth in Salary Spending
All Funds, 2007-08 to 2011-12
8.0%
7.4%
7.0%
5.8%
6.0%
5.1%
5.0%
4.1%
4.0%
3.0%
2.1%
2.0%
Acad Apprentice
Acad Other
2.0%
1.0%
0.0%
Ladder Faculty
Temp Faculty
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Career Staff
Non-career staff
Discussion of Recent Salary Expenditure Trends
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In the past four years, spending on salaries from all funds has increased by 22.7%.
During the same period, the size of the UCLA workforce has increased by 0.65%.
Possible contributors to the remaining increase:
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Faculty merit increases.
Collective bargaining agreements for represented faculty and staff.
Equity adjustments for faculty and non-represented staff.
3% COLA provided to faculty and non-represented staff in Oct 2011.
Substitution of separating employees by new employees at high salary levels.
Much of the growth in salary spend has occurred in the UCLA Health System.
Workforce and payroll have in academic units that have little ability to generate revenues, such as the
College and University Library, have significantly lagged the campuswide average.
Workforce and payroll in most administrative units have significantly lagged the campuswide
average.
The campus has deliberately expanded some administrative units, such as Environmental Health &
Safety, and Research Administration.
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Total Benefits -- All Funds
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$FY 2007-08
FY 2008-09
Medical (Health/Dental/Vision)
FY 2009-10
FY 2010-11
UCRS (Employer Contribution)
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FY 2011-12
All Other Benefits
Annual Percent Change in Operating Expense
2007-08 to 2011-12
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
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