EXPENDITURE REPORT – MAIN CAMPUS
First quarter, FY2008
Covering July 1, 2007 to Sept. 30, 2007
The report for Wayne College is lower on this page.
Explanation of table
Introduction — The expenses in each of the functional categories are compared to the budget (net of carryovers) in an effort to reflect the year-to-date spending against the approved budget. The attached report details this information and also includes the carryover amounts in a separate column for easy reference. In total, functional expenditures were less than budget by $700,000; however, there are a few areas to be addressed.
Instruction — All expenses in this category reflect the direct cost of providing instruction to the students. The largest component is faculty compensation. Expenses within this function were less than budgeted by $5.4 million. This surplus is largely related to the fact that as Academic Investment funds are allocated, a large number of vacant positions reside within this functional category.
Research — The first-quarter activity in research reflects an unfavorable spending variance of about $224,000, or 14.8 percent. This is primarily related to the timing of the activity in the research cost-sharing accounts and early activity in the various indirect cost accounts.
Public Service — The bulk of the activity in this area is related to sales accounts. A minimal negative variance in Workforce Development is more than offset by the favorable results in the remaining public service activities. These accounts experience timing variances and it is not uncommon to see expense overages and revenue shortfalls early in the year. By year-end, the revenues will catch up and most sales accounts will generate a small balance to carry forward into the next fiscal year.
Academic Support — Spending in academic support areas was greater than budgeted in the first quarter by 19.8 percent, or $1.2 million. This is not a concern as the carryover from FY07 in this category nears $5 million.
Student Services — Spending was less than budgeted in the first quarter by 8.5 percent, or $.2 million.
Institutional Support — Expenses of $19.3 million were higher than the budgeted $15.6 million. This is largely due to the fact that the Institutional Support budget is artificially low as it includes the projected savings from the institutional vacant positions. As the year progresses, the earned savings in other functions will offset this amount.
Plant Operation & Maintenance — Activity in this function was well within the budgeted amount in the first quarter.
Scholarships — The first-quarter results in the scholarship function are slightly greater than budgeted. With a variance of less than a half percent, this is not a concern and should recover as we move toward the spring term.
Reserve for Bad Debt — There may be small write-offs throughout the year, however mandatory write-offs of bad debt occur mostly at year-end.
EXPENDITURE REPORT – WAYNE COLLEGE
First quarter, FY2008
Covering July 1, 2007 to Sept. 30, 2007
Explanation of table
Introduction — The expenses in each of the functional categories are compared to the budget (net of carryovers) in an effort to reflect the year-to-date spending against the approved budget. The attached report details this information and also includes the carryover amounts in a separate column for easy reference. In total, functional expenditures are less than budget by about $.3 million. We will continue to monitor the areas with unfavorable variances.
Instruction – All expenses in this category reflect the direct cost of providing instruction to the students. The largest expense component is faculty compensation. Budget surpluses in this area are primarily related to the fact that all vacant positions for the college fall in this category.
Research – The $3,000 allocated for internally-funded research has not been used to date in FY08.
Public Service – The activity in this area is related to Workforce Development/Continuing Education programs. These accounts experience timing variances and it is not uncommon to see expense overages and revenue shortfalls early in the year.
Academic Support – Spending in the Academic Support areas exceeded the first quarter budget by 8.7 percent. This overage was primarily in the library service areas.
Student Services – Expenses in the Student Services function were less than budget by 15.7 percent primarily in the area of extracurricular activity funding. Next month will reflect a significant use of the allocated funds.
Institutional Support – Activity in this function exceeded the budget by about $30,000, or 4.8 percent. The primary source of this unfavorable variance is the Advertising activity. Early spending and encumbered funds have impacted this function.
Plant Operation & Maintenance – Expenditures in this function were well within the budget with a favorable variance of $46,000, or 15 percent.
Total Educational and General Expenditures - Overall E&G expenses are well within the first-quarter budget.
