EXPENDITURE REPORT – MAIN CAMPUS
Second quarter 2007
Covering July 1, 2006 to Dec. 31, 2006
The report for Wayne College is lower on this page.
Explanation of table
In the table above, expenses in each category are compared to the budget (excluding carryovers) to track year-to-date spending. In total, functional expenditures are less than budget by $5.8 million; however, once merit increases owed to AAUP members have been paid in full (see below), this amount will decrease.
Instruction – All expenses in this category reflect the direct cost of providing instruction to the students. Faculty salary variances led to temporarily lower instructional costs than anticipated. We expect this line item to come in closer to our budget estimate in the third-quarter report.
Research – The activity through December shows expenditures $500,000 greater than what was anticipated. This is primarily related to the timing of the activity in the research cost-sharing accounts and the timing of early activity in the various indirect cost accounts. This also reflects the fact that a large portion of the budgets are carryover funds from previous years and/or monthly installments of indirect cost distributions.
Public service – The bulk of the activity in this area is related to departmental sales and workforce development accounts. Because these accounts experience timing variances, it is not uncommon to see expense overages and revenue shortfalls early in the year. By year's 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 the academic support areas exceeded the December budget by $300,000, or 2.6 percent in total. More than a third of this was in the library area, with the remainder attributed to various other academic support services.
Student services – Spending was less than budgeted by about $600,000, or 12 percent.
Institutional support - Expenses of $26.6 million were $5.2 million, or 24.8 percent higher than budget. This is largely because the Institutional Support budget includes the projected savings ($8.1 million) from the institutional vacant positions. As the year progresses, the earned savings in other functions will offset this amount.
Plant operation and maintenance – Activity in this category was slightly higher than budgeted through the sixth month. The new energy-saving plan should yield some savings here.
Scholarships – The favorable variance in scholarships is reflective of the set-aside for need-based scholarships which will be meted out over time in conjunction with the growth plan.
EXPENDITURE REPORT – WAYNE COLLEGE
Second quarter 2007
Covering July 1, 2006 to Dec. 31, 2006
Explanation of table
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. In total, functional expenditures are less than budget by $500,000. We will continue to monitor the areas with unfavorable variances.
Instruction — All expenses in this category reflect the direct cost of providing instruction to students. The largest component is faculty compensation. Faculty salary variances led to temporarily lower instructional costs than anticipated. We expect this line item to come in closer to our budget estimate in the third-quarter report.
Research — The year-to-date expense of $3,880 exceeds the annual $3,000 allocated for internally-funded research and relates to a faculty-development program titled "Generation NeXt Comes to College."
Public service – This category is Workforce Development/Continuing Education programs. The overspending in the sales accounts (by $20,000) is more than offset by the surplus revenues generated in these programs.
Academic support — Spending in the academic support areas was below the December budget by 1.8 percent. This surplus resulted from the net of minimal overspending the library service areas and minimal surpluses in the other academic support areas.
Student services — Expenses in the student services function exceeded budget primarily in the area of extracurricular activity funding.
Institutional support — Activity in this function was well within the budgeted level as of the end of December.
Plant operation & maintenance — Expenditures in this function exceeded the budget primarily in the areas of building & equipment repair and campus grounds. This is, in part, due to outstanding blanket purchase orders encumbered in these areas.
Total education and general (E&G) — Overall E&G expenses are well within the six-month budget.
