GRADUATE SCHOOL OF MANAGEMENT PROVOST BUDGET UPDATE

GRADUATE SCHOOL OF MANAGEMENTPROVOST BUDGET UPDATE

1

ANN HUFF STEVENS BRAD BARBERDEAN & PROFESSOR OF ECONOMICS ASSOCIATE DEAN FOR ACADEMIC AFFAIRS & PROFESSOR OF FINANCE

DON PALMERPROFESSOR OF MANAGEMENT & CHAIR, FACULTY EXECUTIVE COMMITTEE

JIM KELLYASSISTANT DEAN FOR FINANCE & ADMINISTRATION

15 July 2015

Outline

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• UC Davis Graduate School of Management - Fundamentals• State of the Graduate School of Management

– Enrollments, Key Challenge– The MBA Market – Student ROI at the GSM

• Plans for Innovation and Growth– Innovations in Professional Degree Programs– Undergraduate Major– Research Goals– Request for Provost Support

• Financial Review:– 2014-2015 Anticipated Results and 2015-2016 Budget– Budget and Financial Monitoring Process Improvements– Fundraising and Endowments

Graduate School of Management - Fundamentals

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• Full Time MBA – two year program• Established 1981• 92 students including 7 JD/MBA (43 entered 2014)• Ranked 48th (USN&WR)

• Part Time MBA Sacramento – flexible three year program• SSDP established 1994• 167 students (57 entered 2014)

• Part Time MBA San Ramon (Bay Area) – flexible three year program• SSDP established 2003• 216 students (56 entered 2014)• Sacramento and San Ramon programs ranked together at 29th (USN& WR)

• MPAc – one year program• SSDP Established 2012• 47 students

• Technology Minor –• Undergraduate program established 2003• 140 students

State of the Graduate School of Management

4

• Accreditation renewal notes strong research faculty, involvement of non-ladder faculty, successful teaching across 3 locations

• Key challenge: maintaining high quality student enrollments despite decline in national demand for MBA programs

• US News Ranking of FT MBA program fell slightly from 44th to 48th

• Driven by reduction in placement rate (3 students)• Test scores, starting salaries remained constant

• New MPAc program is strong• Growing enrollments, strong placement• #1 pass rate in state on CPA exam

Declining GMAT Registrants

87,492 90,271 93,333 108,072 95,488

134,380 129,594 119,741 120,899

95,170

-

50,000

100,000

150,000

2009 2010 2011 2012 2013

non-USUS

Full-

time

MBA

1,729 1,436 1,281 1,322

997

200 161 170 194 176 -

1,000

2,000

2009 2010 2011 2012 2013

Bay AreaSacramento

Part

-tim

e M

BA

GSM Student ROI

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Class of 2010 2011 2012 2013 2014

Pre-MBA Salary $47,253 $49,779 $51,930 $45,668 $45,123

Post-MBA Salary $91,872 $89,730 $91,569 $84,071 $90,023

Post-MBA Increase $44,619 $39,951 $39,639 $38,403 44,900

Post-MBA Increase % 94% 80% 76% 84% 100%

2-year Tuition/Fees-RES* $56,074 $63,069 $70,947 $76,174 $78,170

Mean per Borrower $48,037 $46,411 $59,608 $52,705 $73,428

Borrowers % 47% 65% 58% 40% 34%

• Average student borrowing has fluctuated but increased dramatically from 2013 to 2014.

• Based on total tuition/fees, average starting salary and increase from pre- to post-MBA, these debt levels are manageable and the ROI is sound.

* Add $24,490 for non-residents.

Innovations in Professional Degree Programs

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• MBA program enhancements• Elective curriculum reform• Integrated Management Project• Joint JD-MBA with Hastings College of Law

• New program in approval process: MS Business Analytics

• New program in development: Undergraduate Major and Minors

• Other programs under discussion: • Joint MBA with Vet Med• Discussions with Department of Public Health• 1 year MS in Management

Master’s of Business Analytics

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• Business analytics is a growing field, which is imperative foruniversities and business schools

• Distinctive and innovative program structure to encourage:• blended managers, with both hard “data crunching” and softer

managerial skills• direct engagement with corporate sponsors/donors to offer

practical projects for hands-on learning• Financial projections show break even with 40 students enrolled• Initial start-up investment projected: $400,000

Undergraduate Major

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• Strong faculty support (and vote) on proposed curriculum

• Meeting with 15+ area industry representatives with strong support

• Enthusiasm from current donors and supporters

• Current and former UCD students have written letter of support

• Meetings completed with Department Chairs with coursework involved • Agriculture and Resource Economics • Economics• Other Departments within Social Sciences; Humanities, Arts and Cultural Studies and

Math and Physical Sciences

Research Goals

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• Current research profile is strong• Focus on top journals, high visibility for academics• Less focus on extramural support for research

• Summer compensation policy with new mention of extramural grant activity• Current budget dictates substantially reduced summer

compensation for faculty• Incentive and space for summer comp through grants

Request for Provost Support

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• The GSM has reserves to cover the expected deficit for 2015-2016

• No additional Provost support is requested for FY 2015-2016

• Provost support will be requested in FY 2016-2017 for:• Incoming GSM Dean• Launch of the Undergraduate Business Major

Financial Review: 2014-2015 ResultsSources - $23.925 million

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$6,950

$101 $2,106 $12,932

$40

$1,796

State Funds and Tuition

Indirect Cost Return

Professional Degree Supplemental Tuition

Self-Supporting Degree Program Fees

Other Income or Recharge

Other Funds

Financial Review: 2014-2015 ResultsUses- $24.293 million

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$8,196

$1,335

$4,741

$4,203

$4,301

$700 $817

Regular Faculty

Other Academic/Teaching

Staff Salaries

Benefits

Operating Expenses & Equipment

Travel

Financial Aid – Administered by GSM

Financial Review: 2014-2015 Results

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• Annual Net Operating loss for all funds: ($368,000)

• The main drivers of the deficit compared to plan were:• Low enrollment in Bay Area • Less philanthropic giving than planned• Higher salary expense than planned

• ICR/Other Unrestricted Carryforward after 2014-2015: $831,000• Fund Functioning As An Endowment: $2,200,000

• The plan to return to financial surplus:• Focus on recruiting and enrollment• Better managing controllable costs• New programs with sound financial models

FY 2015-2016 Budget2014-15 Estimated

Final2015-16 Budget

PRIOR YEAR CARRYFORWARD:Total 831$ Change from Prior Year (368)$

SOURCES OF ANNUAL OPERATING FUNDSState Funds and Tuition 6,950$ 7,122$ Indirect Cost Return 101$ 65$ Professional Degree Supplemental Tuition 2,106$ 2,176$ Self-Supporting Degree Program Fees 12,932$ 13,120$ Other Income or Recharge 40$ -$ Other Fund Types (Endowment Income, Current Gifts & Exec Ed) 1,796$ 1,753$ ANNUAL OPERATING SOURCES 23,925$ 24,236$

USES OF ANNUAL OPERATING FUNDSEMPLOYEE COMPENSATION:

Regular Faculty (ACAD, SB01, SUB0) 6,874$ 6,788$ Academic Administrators (SB05) 229$ 234$ Other Academics (SB06, SB03, ACAX, ACGA) 1,596$ 1,740$ Teaching & Research Assistants, House Staff (SB02, SB07, SB04) 832$ 856$ Staff Salaries (STFO, SUBS, SUBG, SUBX, STFB) 4,741$ 4,642$ Employee Benefits (SUB6, SB28, SB67) 4,203$ 4,279$

Total Employee Compensation 18,475$ 18,539$

OPERATING EXPENSES AND EQUIPMENT 4,301$ 4,222$

TRAVEL (SUB5) 700$ 649$

FINANCIAL AID (SCHL) 817$ 1,029$

TOTAL EXPENDITURES 24,293$ 24,439$

ANNUAL NET OPERATING POSITION [Surplus (+)/Deficit (-)] (368)$ (203)$

Total TotalEstimated Contract and Grant Direct Expenditures 335$ 335$

Forecasting

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$21,000

$22,000

$23,000

$24,000

$25,000

$26,000

$27,000

$28,000

$29,000

2014-2015 2015-2016 2016-2017 2017-2018 2018-2017

Hi Enroll Normal Enroll Low Enroll Expense

• Expense assumes a 4% annual increase after 2015-2016• Normal Enrollments: 45 FT, 55 PT Sacramento, 70 PT Bay, 50 MPAc• High Enrollments: 45 FT, 55 PT Sacramento, 80 PT Bay, 50 MPAc• Low Enrollments: 45 FT, 55 PT Sacramento, 55 PT Bay, 45 MPAc• New programs are not considered in this analysis

Budget and Financial Monitoring Process Improvements

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• GSM Account Structure has been revised to facilitate financial management by program

• Policies and procedures are in place to reasonably allocate expenses benefitting multiple programs

• Quarterly reviews by GSM budget unit will begin at the close of Q1 in the new fiscal year

• Quarterly report-outs to faculty and staff for transparency and accountability

Fundraising and Endowments

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• Demonstrating progress and rightsizing the team• Assistant Dean to Executive Director

• IM Project Expansion: $5000 contributions and increased corporate contact

• 2015-16 Expansion and refocus of Dean’s Advisory Council

Discussion

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lineSee Instructions for Definitions of Fund Types

State Funds & Tuition

ICR Student Fees

All Other Funds

Total

PRIOR YEAR CARRYFORWARD:Total 312$ 1,287$ 867$ 2,466$ Change from Prior Year (300)$

SOURCES OF ANNUAL OPERATING FUNDS(net of depreciation, improvements reserves, and distributions out of org)

State Funds and Tuition 7,122$ 7,122$ Indirect Cost Return 65$ 65$ Professional Degree Supplemental Tuition 2,176$ 2,176$ Self-Supporting Degree Program Fees 13,120$ 13,120$ Student Service Fees and Campus Based Fees -$ Other Student Fees [List if desired, not required] -$ Other Income or Recharge [List if Desired, Not Required] -$ Other Fund Types [List if Desired, Not Required] 1,753$ 1,753$

ANNUAL OPERATING SOURCES 7,122$ 65$ 15,296$ 1,753$ 24,236$

USES OF ANNUAL OPERATING FUNDS

EMPLOYEE COMPENSATION:Faculty

Regular Faculty (ACAD, SB01, SUB0) 1,824$ 4,964$ 6,788$ Academic Administrators (SB05) 24$ 185$ 25$ 234$ Other Academics (SB06, SB03, ACAX, ACGA) 435$ 1,040$ 265$ 1,740$

Teaching & Research Assistants, House Staff (SB02, SB07, SB04) 360$ 496$ 856$

Staff Salaries (STFO, SUBS, SUBG, SUBX, STFB) 1,562$ 2,354$ 726$ 4,642$

Employee Benefits (SUB6, SB28, SB67) 1,262$ 2,712$ 305$ 4,279$ Total Employee Compensation 5,467$ -$ 11,751$ 1,321$ 18,539$

OPERATING EXPENSES AND EQUIPMENTSupplies & Expense (SUB3) 1,655$ 36$ 2,076$ 405$ 4,172$ Subcontracts (SB73) -$ Equipment & Facilities (SB34, SUB4) 50$ 50$

Total Operating Expenses and Equipment 1,655$ 36$ 2,126$ 405$ 4,222$

TRAVEL (SUB5) 29$ 540$ 80$ 649$

FINANCIAL AID (SCHL) 959$ 70$ 1,029$

OTHER UNALLOCATED (SUB8, SUB7, SBMC) -$

DISTRIBUTIONS TO OTHER UNITS & DEBT SERVICE -$

TOTAL EXPENDITURES 7,122$ 65$ 15,376$ 1,876$ 24,439$

ANNUAL NET OPERATING POSITION [Surplus (+)/Deficit (-)] -$ -$ (80)$ (123)$ (203)$

Federal State Private Local/Other TotalEstimated Contract and Grant Direct Expenditures 235$ -$ 100$ -$ 335$

2015-16 Estimate

Explanatory Notes: Incremental changes by line item are all less than 1% of budget. No incremental change analysis is presented here.

Graduate School of ManagementEstimated 2015-16 Budget, All Funds, Net Operating Position

(Dollars in thousands)

Graduate School of Management Financial Management Questionnaire

1. Please describe the annual budget process for your unit. Include information such as: who is

involved in the process; what type of information is provided to leadership, faculty, and other stakeholders; what type of review is done of sub-unit budget status (i.e. department, center, dean’s office, etc.) and how often? Please include links for any information published on the web. The annual budgeting process at the GSM preparing for FY 2015-16 is the first time through for the Interim Dean and the Assistant Dean for Finance and Administration, who began in their roles on October 1, 2014 and March 1, 2015 respectively. The process this year is a work in progress as we establish the roles and practices with leadership, faculty and staff that support sound budget preparation, management, monitoring and adjustment. In fall of 2014, responding to the desire of our faculty to be better informed as to the School’s financial status, the Dean began to provide updates on financial matters at regular faculty meetings. Initially, this included reporting on key events (such as a drop-off in fall enrollments, and reductions in faculty research account allocations) that had significant budgetary implications. Following the mid-year reconciliation of projected and actual spending, another update was provided to the faculty for discussion. The Dean, Associate Dean and Assistant Dean are in close communication with the Chair of the Faculty Executive Committee throughout the year on programmatic and budgetary issues, including monthly Senior Leadership meetings. Starting in 2015-16, the budgeting process will begin in the first quarter of the calendar year and will be informed by regular monitoring of unit expenditures and programmatic results. The GSM’s administration, including input from staff members with budgetary responsibility, prepare a draft budget by early April. This will be shared with faculty for feedback prior to presenting the budget to the Provost in the late spring. Once enrollment numbers are known in October, a final budget will be prepared with further consultation among staff managers and faculty. This year, because a new Assistant Dean for Finance and Administration was hired on March 1, 2015, we are following an abbreviated process prior to the Provost meeting. Staff budget managers were consulted and the preliminary budget was shared with the Faculty Executive Committee Chair and members of the ad-hoc Faculty Budget Committee. The consultative process with staff budget managers and faculty will continue as we review our financial status, and especially as the enrollment numbers and budget are finalized in October.

2. How do you monitor your financial status throughout the fiscal year? What funds do you currently monitor? How do you envision using new reporting tools? How frequently are reports provided to unit leadership? What is the process for making adjustments mid-year?

We manage our financial status throughout the fiscal year using reports from DAFIS across all funds. Reports are provided to budget unit leadership on a monthly basis, but the usage of these reports has been low since they are not understood well by all managers. Beginning with Q1 of FY 2015-2016, the GSM will hold formal quarterly budget review meetings with all budget unit managers to monitor financial status, expenditure and revenue. Quarterly financial reports will be formally shared with faculty with the opportunity for feedback.

Because of the importance of self-supporting degree program fees for the GSM, enrollments in these three programs (Part-time MBA programs in Bay area and Sacramento and the Master of Professional Accountancy) are pivotal for our budget planning and management. An important initial task of the new Assistant Dean for Finance and Administration was to build a more detailed model to project self-supporting fee revenue for future quarters. Actual enrollments are not known until the beginning of October. We will revise the budget in October based on September actuals and known enrollment numbers.

3. How are administrative and academic support functions distributed in your unit? What functions are supported in the Dean’s Office, Department, or other (i.e. clusters)? How is the level of funding for administrative and academic support functions determined or evaluated?

As the GSM is both a single department and a school, most administrative and support functions are located in the Finance and Administration Unit. Academic program planning, academic affairs, teaching and research assistance allocations take place in the Dean’s Office. Student Affairs, Executive Education and Development are each headed by staff at the director or assistant dean levels, and directly report to the Dean of the school.

The Dean appoints an Associate Dean for Academic Affairs and Associate Dean for Instruction, who each serve akin to acting department chair for their policy area. Additionally, faculty members are appointed as area conveners for faculty discipline group areas. These faculty members serve as informal department leaders as the GSM does not have formal departments, but the faculty have distinctive academic areas. These area conveners assist in curriculum development. Each faculty area receives research and teaching development funds based on a base allocation amount and formulas that depend on class assignments and enrollments.

4. Have you identified any areas where there are opportunities for administrative or organizational efficiencies within your unit? Over the past 2-3 years, have you implemented any such efficiency measures? Please describe these changes and any results known thus far. What barriers are there to implementing other efficiencies identified? In early FY 2014-2015, the GSM took several steps to reduce the structural budget deficit that had developed. Five and a half staff FTEs were eliminated, resulting in expected incremental annual savings of $850,000. These staff reductions most affected future expansion of the Executive Education program, the GSM’s energy and sustainability program, and media relations. Staff reductions also affected development, student support and administrative

services. Administrative operating budgets were thoroughly reviewed to ensure that expenditures optimally served the research, teaching and service missions of the school. Faculty academic year compensation was not affected by these cost reductions. Faculty research accounts were reduced slightly (by approximately $60,000 in total) in Fall 2014 following realized reductions in fall enrollments. In FY 2015-2016, faculty summer compensation will be reduced in the aggregate. This is the largest single controllable cost in the GSM budget and occurs in the summer months before enrollments are known. The broad allocations of previous years also did not clearly and incrementally incentivize research, teaching and service excellence. Given that the GSM is projecting a $368k deficit in FY 2014-2015 and the enrollment numbers for FY 2015-2016 are not known, and with the goal of allocating summer compensation more carefully strategically, it will be reduced by approximately 25% for the summer of 2015. The resignation of our Assistant Dean for Development and External Relations, in Winter 2015, triggered discussions between the Dean and the Vice Chancellor for Development about the appropriate size and level of the GSM Development team. All agreed on a decision not to replace that Assistant Dean, but rather to revise the Senior Development Director to take on leadership of the development team and high level donor prospects. While this decision was made for strategic, and not budgetary, reasons, it will slightly reduce staff expenses without threatening our development efforts. A review has also been conducted of faculty teaching loads and emphasis placed on ensuring that all ladder faculty are regularly teaching their full loads.

5. How do you support graduate education? Has this changed as a result of the new graduate budget model and associated funds? As a professional school, without a PhD program, this question may not be directly relevant. The GSM supports graduate education primarily through entrepreneurship education at the Child Family Institute, and faculty participation on dissertation committees. The Child Family Institute for Innovation and Entrepreneurship (CFIIE) actively recruits “Business Development Fellows” from among graduate students and post-doctoral researchers on campus to attend GSM courses (at no cost) to develop business skills and prepare for a career in industry. The Big Bang! Business Competition and CFIIE agriculture, biomedical and engineering entrepreneurship academies also engage graduate students from across other Colleges and Departments on campus. Though the GSM does not have a PhD program, GSM faculty serve on dissertation committees where relevant at other divisions.

6. What are your research goals? How do you support research infrastructure? What is the greatest challenge your unit would need to overcome to grow research activity? How would you achieve a 6-8% increase?

Research activity at the GSM continues to be strong. Our faculty are highly ranked for their research publications, and citations. We provide funding to every faculty member to support their research activities. The School also devotes resources to a staff member who provides research support to faculty on a project basis throughout the school year.

What is less well-established is a norm of seeking external research support. Changing this norm is the greatest challenge to increasing externally funded research. With some notable exceptions, most faculty do not regularly apply for grants from outside agencies or foundations. A goal is to increase participation and submission of research grant applications with GSM faculty as the PIs. Changes in the policy for awarding summer compensation have been made to explicitly recognize and reward attempts at generating extramural funds.

Budget Context: Graduate School of Management

Budget and Institutional Analysis, July 2015 | Page 1

2013-14 Sources of Current Operating Allocations & Revenue (dollars in thousands): $24,175

Current Operating Sources and Uses: All Funds (dollars in thousands) (Excluding Contracts & Grants and Agency Accounts)

2013-14 Actual 2014-15 Budget Estimate

SOURCES OF FUNDS State Funds, Tuition & ICR

All Other Funds State Funds, Tuition & ICR

All Other Funds

State Funds and Tuition $6,595 - $6,950 - Indirect Cost Return $209 - $101 - Professional Degree Supplemental Tuition - $2,142 - $2,106 Self-Supporting Degree Program Fees - $12,803 - $12,932 Other Income or Recharge - $28 - $40 Other Funds - $2,399 - $1,796

TOTAL SOURCES $6,804 $17,371 $7,051 $16,874

Financial Aid – Administered by FAO* $363 - $274 - *In 2015-16 financial aid from tuition return-to-aid will be transitioned to professional schools

State Funds and Tuition

$6,59527%

ICR$2091%

Professional Degree

Supplemental Tuition$2,142

9%

Self-Supporting

Degree Program Fees

$12,80353%

Other Income or Recharge

$280%

Other Fund Types$2,399

10%

Comments:

• 69% of the school’s base allocation and revenue comes from various student fees.

• 20% of the school’s base allocation and revenue comes from the Provost Allocation.

• The $6.6 million in State Funds and Tuition includes $1.1 million in tuition for the MBA day-time program (17.6%) and $443,000 in tuition for undergraduate teaching (6.7%).

• “Other Funds” for 2013-14 includes $1million in endowments and gifts, $730,000 for executive education, and $416,000 in STIP.

• In 2013-14 75% of the school’s budget was spent on salaries and benefits both faculty and staff combined.



Current Operating Sources and Uses: All Funds (dollars in thousands) (Excluding Contracts & Grants and Agency Accounts)

2013-14 Actual 2014-15 Budget Estimate

USES OF FUNDS State Funds, Tuition & ICR

All Other Funds State Funds, Tuition & ICR

All Other Funds

Employee Compensation Regular Faculty $2,876 $3,642 $3,302 $3,572 Academic Administrators $24 - $24 $205 Other Academics $90 $1,926 $80 $1,516 Teaching & Research Assistants, House Staff $1 $557 $120 $712 Staff Salaries $2,112 $2,923 $1,721 $3,020 Employee Benefits $1,514 $2,587 $1,593 $2,610

SUBTOTAL $6,617 $11,635 $6,840 $11,635

Operating Expenses & Equipment Supplies & Expense $88 $4,399 $22 $4,233 Subcontracts - - - - Equipment & Facilities $16 $38 - $46

SUBTOTAL $104 $4,438 $22 $4,279

Travel $25 $620 - $700 Financial Aid – Administered by GSM - $954 - $817 Other Unallocated - - - -

TOTAL EXPENDITURES $6,746 $17,646 $6,862 $17,431

ANNUAL NET OPERATING POSITION $58 $(275) $189 $(557) Prior Year Carryforward $256 $2,502 $313 $2,227 Financial Aid – Administered by FAO* $346 - $237 - *In 2015-16 financial aid from tuition return-to-aid will be transitioned to professional schools



Ladder Faculty and SOE by Department (October 2014)

FILLED FTE1

DEPARTMENT 2010 2014

School of Management 31 30

TOTAL 31 30 Data Source: October Snapshot of PPS Staffing List and Open Provisions 1 Filled FTE includes FTE as detailed in PPS and open provisions held for faculty unable to officially occupy the FTE.

Ladder Faculty Recruitment and Hiring Trends (Filled Faculty N=30 as of 10/31/14)

2010-11 2011-12 2012-13 2013-14 2014-15

Recruitments Authorized (Search Year) 1.00 1.00 1.00 0.00 1.00 Hires (Appointment Year) 1.00 0.00 1.00 1.00 0.00 Separation (Following Exit Year) -1.00 0.00 0.00 0.00 -2.00 Net Change Hires-Separations 0.00 0.00 1.00 1.00 -2.00 Note: 1) Total recruitments includes continuing and new. Recruitments authorized as continuing in July that resulted in a hire as of 9/30/14 are not counted as a recruitment in FY2014-15. 2) Hires in 2014-15 include offers accepted with start dates that fall in 2014-15. 3) Separations have been shifted to the year following the separation to better reflect faculty available for instruction within a given academic year. The majority of separations occurs during the final quarter of the fiscal year or after teaching for that academic year is complete.

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2010-11 2011-12 2012-13 2013-14 2014-15

Facu

lty

Recruitments Authorized (Search Year) Hires (Appointment Year)

Separations (Following Exit Year) Net Change Hires-Separations



Employee FTE Excluding Ladder Faculty and SOE (October 2014)

FUND SOURCE

State Funds & Tuition External & Other Funds Total

UNIT/POSITION TYPE 2010 2014 2010 2014 2010 2014

Academic Federation2 5 7 - 1 5 8

Other Academic Staff 3 3 - 1 3 4

SMG and MSP 3 6 2 3 5 9

Professional & Support Staff (PSS) 40 40 3 7 42 48

Student Employees 8 10 0 1 8 11 TOTAL FTE 59 67 5 13 64 80

Data Source: October Snapshot of Corporate Personnel System Note: The sum may not match the total due to rounding. 2 Academic Federation FTE may include some ladder FTE in researcher titles for part of the year.

Endowment (dollars in thousands) (Market Value of Principal as of June 30, 2014)

ENDOWMENT PURPOSE Endowment Funds Functioning as

Endowments (FFE) Grand Total

Departmental/School Purposes $6,875 $2,442 $9,356 General Purposes - $1,423 $1,423 Prizes and Awards $219 - $292 Professorships and Chairs $4,428 $1,414 $5,238 Student Aid $1,112 - $1,604 Various Purposes $4,227 $1,414 $5,641

GRAND TOTAL $16,860 $6,694 $23,554 Note: Total endowment market value increased 19.22% over the prior year. The category “Prizes and Awards” may include some scholarships and fellowships.



ICR Generated by Year

Contracts & Grants Expenditures by Year

$ $ $35 $67 $40

$24

$23

$1

$7

$23

2010-11:$1

2011-12:$0

2012-13:$67

2013-14:$90

2014-15 Projected:$63

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Dolla

rs in

Tho

usan

ds

Federal State Other

$97 $285 $271

$105

$96

$31 $33

$20

$30

$85

2010-11:$31

2011-12:$33

2012-13:$223

2013-14:$411

2014-15 Projected:$357

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Dolla

rs in

Tho

usan

ds

Federal State Other



Base Budget Model Funds Allocation

Undergraduate Tuition Revenue Metrics

Percent Share

of Campus Total Incremental Revenue Change

(2015-16 Estimate)

METRIC 2014-15 2015-16 Estimate

% Change

Redistribution Add’l Base

Tuition Add’l NRST

Total

SCH 0.5% 0.5% 0% Weighted Share (60-30-10) 0.3% 0.3% -1% $(2,000) $8,000 $6,000 $12,000 OP Tax (dollars in thousands)

FUND SOURCE 2014-15 2015-16 $ Change

State/Tuition $96 $102 $6 Extramural and ICR $5 $9 $4 All Other Fund Sources $246 $259 $13

TOTAL $347 $370 $23 Note: The fund source categories are different than the ones used in prior years; this change accounts for some shift in tax liability between categories

$418 $436 $443 $455

$1,070 $1,166 $1,092 $1,092

$4,663 $5,006 $5,282 $5,498

ICR, $25ICR, $33 ICR, $15

Summer Sessions, $43Summer Sessions, $44

2012-13: $6,151at June 30

2013-14: $6,633at June 30

2014-15: $6,893at February 2015

2015-16: $7,105April Estimate

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Dola

lrs in

Tho

usan

ds

UG Tuition Revenue Professional Tuition Provost Allocation ICR Summer Sessions

Budget and Institutional Analysis

Graduate School of ManagementCampus Carryforward and Reserve Balances(dollars in 000s)

2012-13 2013-14 2014-15 2014-15 2014-15Carryforward Carryforward Carryforward Committed Known

As of July 1, 2012 As of July 1, 2013 As of July 1, 2014 Obligations ObligationsCOBL KOBL

1 State Funds/Tuition/Fees2 General Funds and Tuition 9$ 0$ 0$ 3 Summer Session Fees 27$ 32$ 22$ 4 Professional Degree Fees 205$ (269)$ (20)$ 5 Student Services Fee6 Course Material Fees7 Campus-Based and Other Student Fees 1 141$ 106$ 35$ 8 Sub-Total, State Funds/Tuition/Fees 382$ (131)$ 37$ -$ -$ 910 Indirect Cost Recovery 211$ 240$ 311$ 11 Sub-Total, Indirect Cost Recovery 211$ 240$ 311$ -$ -$ 12 Other Unrestricted Funds13 Private Unrestricted Gifts 174$ 166$ 39$ 14 Other Funds 2 65$ 207$ 346$ 15 Unrestricted Endowment/FFE Earnings16 UNEX Reserves 57$ 61$ 6$ 17 Self-Supporting Degree Fees 676$ (308)$ 91$ 173$ 18 Application Fees 237$ 259$ 37$ 19 Sub-Total, Other Unrestricted Funds 1,210$ 383$ 520$ 173$ -$ 20 Sub-Total, ICR/Other Unrestricted 1,420$ 623$ 831$ 173$ -$ 2122 Restricted and Designated Funds (all remaining funds)3 1,923$ 1,746$ 1,177$ 23 All Funds Total 3,726$ 2,238$ 2,045$ 2425 Select Fund Types -- State Funds/Tuition/Fees26 Prior Year Expenditures 8,057$ 8,340$ 7,866$ 7,866$ 27 CF as a % of Expenditures 5% -2% 0% 0%2829 Select Fund Types -- ICR/Other Unrestricted30 Prior Year Expenditures 222$ 434$ 1,201$ 1,201$ 31 CF as a % of Expenditures 638% 143% 69% 55%3233 Restricted and Designated Funds (all remaining funds)3

34 Prior Year Expenditures 11,901$ 13,449$ 14,394$ 35 CF as a % of Expenditures 16% 13% 8%3637 All Fund Types38 Prior Year Expenditures 20,181$ 22,223$ 23,461$ 39 CF as a % of Expenditures 18% 10% 9%4041 Selected Funds -- Dean - Departmental/Other:42 Carryforward held by Dean's Office 37% -1% 6%43 Carryforward held by Departments/Other 63% 101% 94%4445 Gift Fee Funds -UC Fund (56996):46 Carryforward 372$ 264$ 23$ 47 Prior-year Expenditures 38$ 149$ 24$ 48 CF as a % of Expenditures 976% 178% 96%4950 1 Campus-Based and Other Student Fees category is almost 90% student referendum funds on a campus-wide basis.

51 2 Other Funds category is 90% STIP and patent revenue on a campus-wide basis.

52 3 Restricted and Designated Funds excludes contracts and grants for each unit, as does expenditures.

53 HEFC=FINA is excluded from all funds.

Comments: -In addition to the carryforward shown here, GSM has $2.2 million in a Fund Functioning as Endowment (FFE), which was established from self-supporting degree program revenue to serve as an operating reserve for the school. -GSM carryforward has fallen by $1.7 million between July 2012 and July 2014 because the school had a structural operating deficit. -Between 2011-12 and 2013-14 GSM expenditures from all fund types increased by $3.3 million. Of this amount $1 million was in general assistance (contract staff at GSM), employee benefits increased by $1.1 million, and academic salaries (including TAs and other teaching staff) increased by $1.3 million.

Budget and Institutional Analysis

Graduate School of ManagementCampus Carryforward and Reserve Balances(dollars in 000s)

54 Carryforward - Details on committed and Known Obligations (Fall Review)55 OBLIGATION TYPE/DESCRIPTION Project Code Committed Known56 Faculty Start Ups CFSTUP"####" 173$ 57 Total 173$ -$

GRADUATE SCHOOL OF MANAGEMENT PROVOST BUDGET UPDATE

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