Connecting Budgets with FY24-25 Revenues and Expenses
How Operating Budgets are Connected to Revenues & Expenses
The university's operating budget represents the planned revenue and expenditures for a fiscal year. Actual revenue totals and the amount spent during the year will be different from what was projected in the budget. When revenues exceed the budgeted amount, the additional funds become part of the institutional fund balance. The relationship between operating budget and the actual revenues and expenses for Fiscal Year 2024-2025 (FY 2025) is shown below along with the beginning and ending fund balances to illustrate the full context of the university's operating funds.
The Distributed Operating Budget and Expenses by Division, College/Area elements are linked to interactive tables that present five year budgets and actual expenses. The tables show the distributions by division and have the capability to expand to show colleges and other units by clicking the plus sign icons.
Beginning Fund Balance $17.94M
The beginning fund balance is the sum of local operating fund balances across all divisions and the institutional funds on July 1, the start of the fiscal year. The university's fund balance represents the university's reserve and is a one-time funding source, once spent the resource is gone.
Local Operating Revenue $231.45M
This represents the total of all operating revenue sources. When more revenues are received than were budgeted, the additional funds become part of the institutional fund balance.
Additional information about revenues is provided on the FY25 Operating Revenues and Expenses page.
Distributed Operating Budgets
The operating budget is distributed across divisions to colleges, units, departments, programs, etc. annually and represents the delegated spending authority.
Expenses by Division, College/Area $233.21M
While we typically discuss total operating expenses (see FY25 Operating Revenues and Expenses), expenses are distributed across divisions, colleges, and other units. When spending is below an area's operating budget, the surplus becomes a positive fund balance at the end of the fiscal year and contributes to the university's overall fund balance. If spending exceeds the allocated budget the area will have a deficit balance and should work with their college or division to identify a solution.
Salaries and Benefits $204.75M
Includes all expenses and benefits paid to employees regardless of job type or full-time status.
Goods and Services $28.46M
Includes all goods and services including contracted services, travel, and non-capitalized equipment.
Misc Transfers, In $3.3M /(Out)
The net sum of transfers across funds always equals zero. Incoming transfers partially cover the gap when operating revenues are less than expenses.
Ending Fund Balance $19.48M
There was a net increase in fund balance for the year as expenses came in lower than had been budgeted.
Key Take-Aways
In FY 2025, overall gap between revenues and expenditures totaled -$1.75m. This is close to the projected use of fund balance in the BOT adopted budget of -$1.7m (after removing erroneous expenses included in the adopted budget).
Transfers into the institution had been budgeted as expenditure offsets. However, expenses came in lower than budgeted. This resulted in a net addition to fund balance after covering the gap between revenue and expenses.