Meeting Minutes
Meeting Minutes: November 21, 2005
Committee Members Attending: Wayne Magdziarz, William Honig, Tim McGuriman, Bill Laird, John Frendreis
Committee Members Absent: David Slavsky, Corey DePetro, Cindy Gonya, Anthony Giaquinto
Support Staff Attending: Sherilynn Allen, Tom Kelly
- Review of Minutes from November 15, 2005 Meeting
The minutes from the November 15, 2005 meeting were amended to reflect the vote taken approving the FY 2007 budget assumptions. - P & L Statement Review
Bill Laird provided an overview the profit and loss statements which are based on the Delaware study model and the average credit hours taught. Critical assumptions for the model include:- Credit hours taught are the basis of allocating tuition revenues and financial aid for all undergraduate programs. This results in a better matching of net revenues to undergraduate budgets.
- All graduate and professional programs are assigned revenues and financial aid based on where the student is registered.
- Operating surplus is in agreement with the amount reported in the University's annual audit report. Thus, the linkage of the internally prepared P&L statements to the audit report makes the analysis more understandable.
- Space costs were smoothed in the analysis so as to not penalize units in newer buildings.
- Unique allocation models cover departmental overhead, general overhead, athletics, classrooms and libraries.
Bill further explained that the P & L statements are a tool that help identify university trends, help justify university investments and augments the budgeting process. John Frendreis advised that space allocation calculations included in the P & L calculations will be refined according to the program using the space. John presented a model for calculating the incremental costs and revenues for identifying optimum classroom space needs. This model will also be used in budget planning exercises.
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Adjournment
The meeting was adjourned at 11:30 am.