Connecting Budgets, 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 2023-2024 (FY 2024) 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 $24.0M
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 $218.3M
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 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 $226.9M
While we typically discuss total operating expenses (see 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 $197.4M
Includes all expenses and benefits paid to employees regardless of job type or full-time status.
Goods and Services $29.5M
Includes all goods and services including contracted services, travel, and non-capitalized equipment.
Misc Transfers, In $2.5M /(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 $17.9M
A reduction in fund balance from the beginning to the end of a fiscal year represents the use of reserves to cover the gap between revenues and expenses after accounting for transfers.
Key Take-Aways
In FY 2024, the amount of revenue received was below the amount budgeted due to lower enrollments and spending exceeded that amount budgeted. After transfers, the gap was covered by a reduction to the institutional funds that was covered by fund balance. The use of fund balance represents a -$6.1 M reduction to the university's reserves.