One Way is Not Enough: Multidimensional Financial Management
in Continuing Education
Presented byDr. Barbara AudleyExecutive DirectorExtended Education and Summer ProgramsWestern Washington University
Management Structure
Person who can focus on the over-all financial health of the organization
Professional accountant Experience at a high enough level to
understand the over-all operation Auditing view
A Short Accounting Lesson
Fund Accounting– A beginning balance
--New expenditures
+ New Revenue
-- An Ending Balance
And…
Enterprise Accounting + Revenue
- Expense
Net Balance (+/-)
So…
Live in the Fund World Do Business in the Enterprise World
Rule-Makers
AICPA NACUBO WACS University Policies
Enterprise Systems
Banner PeopleWare SAP
Challenges
2 Systems of Record-keeping 4 Systems of Rule-making An institutional computer system focused on
one system of record-keeping Financial viability requiring the alternate
system A lack of understanding of the need to know
in a different format
How to Proceed
Always balance to the University’s accounts Design reports to meet your needs Develop consistent procedures to report data Customize reports to management and
program needs
EESP’s System
Summary of Funds in Fund Accounting Terms– Beginning balance– Revenue– Expenses– Ending Balance
Monthly
Sample Report
Program Reports
By program/site By programs of the same type
– e.g., Elementary Education– Non-credit certificates
By sponsor– e.g. College of Education– Continuing and Independent Learning
Sample Report
Some Highlights
Annual Budget EESP Share off the top Monthly activity and year-to-date Semi-annual re-evaluation after December
closes
Annual Budget
Based on enrollment projections—conservative
Based on prior year expenditures—add inflation
Adjusted for any forecasted major changes 5% contingency
Annual Budget Sample Report
Program-specific Reports
One site/multiple programs One program/multiple sites
Program-specific Reports (sample)
Overhead Accounts
Segregate EESP costs from program costs Transfer revenue from programs to overhead
costs
Revenue-Sharing
EESP charges a support fee to co-sponsored programs
Zero out at year end Various models:
– 20% of gross revenue– Sliding scale based on enrollment– 15% of gross revenue– Negotiated
Based on services provided
Program Reserves
Program Reserve Program Development Reserve – new
projects Disability Reserve –
Management Strategies
Programs evaluated based on current year activities only
Ending balances transferred to reserve accounts
Enrollment Reports
Show problems at beginning of cycle Provide picture of whole operation Identify trends before financial impacts
obvious Identify gaps in services Quarterly with comparisons and annual total
Enrollment Reports (sample 1)
Enrollment Reports (sample 2)
Forecasting
A work in progress Students do what they will A mature structure Challenge: to determine revenues necessary
to cover existing costs Turn into data that non-financial program
managers can use and implement
Break Even Analysis
The Next Step
Trend analysis useful here Over time what is the average credits per
student enrollment for each program, each site
Again, information in a form non-financial managers can use
Builds in student behavior
Questions?
