Click below on a question for the answer:

1. What is the amount of UT's budget?

2. What is the distribution of sources for these funds?

3. What is the distribution of expenses for the general fund?

4. What is a fund balance and why is it needed?

5. Is there a different budget for buildings and other capital projects?

 

 

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1. What is the amount of UT’s budget?
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There are four major fund groups:

General Fund is basically the day-to-day operating budget.  There is approximately $257.6 million of revenue available to operate the General Fund.

Designated Funds are funds that have been designated for specific activities.  They are intended to be self-supporting.  Included in the Designated Fund are areas such as the Executive MBA program, the Polymer Institute, portions of University College, lab fee accounts, the animal care facility, URAFP awards, etc.  The combined expenditure and transfer budget for designated funds is approximately $13 million.

Auxiliary Funds are funds ancillary to the University mission of instruction and research.  Included in the Auxiliary Funds are areas such as Athletics, Residence Life, Student Medical Center, Student Recreation Center, the Child Care Center, etc.  The combined expenditure and transfer budget for auxiliary funds is approximately $51.2 million.  Auxiliaries are intended to be self-supporting also.

Restricted Funds are funds whose use is restricted to specific purposes by outside agencies.  Grants are part of the Restricted Funds.  The Restricted Fund budget is based on the timing of receiving new grants and the expiration of grants.  The overall restricted budget fluctuates throughout the fiscal year.

2. What is the distribution of sources for these funds?
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58% tuition, 31% state funds, the rest from other sources like other student fees, indirect cost recovery, and investment income.

3. What is the distribution of expenses for the general fund?
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Academic programs, that include areas such as instruction, academic support and scholarship, are 70% of budgeted expenses. Student and Institutional Support that includes but is not limited to Separately Budgeted Research, Student Support, Institutional Support, and Plant Operations and Maintenance is 27%. Central University accounts that include Senate Bill Six are 3%.

Within these numbers salaries and fringes are 72% of the general fund budget and transfers to other funds account for 13% of the total.

4. What is a fund balance and why is it needed?
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A fund balance is the life-to-date difference between revenues and expenditures, which is the equivalent of retained earnings in the private sector.  Universities need to maintain fund balances for a number of reasons.  Prudent management practice dictates that funds be available to address unforeseen circumstances, such as the 1992 subsidy reductions from the State, large utility cost increases, deductibles on large insured losses, etc.  Additionally, fund balances can be used for start up costs for new programs, until those programs generate the funding necessary to “break even”.  Finally, as discussed at Faculty Senate, Senate Bill 6 requires that the state universities in Ohio maintain minimum financial performance ratios.  Meeting these minimums requires us to maintain acceptable levels of fund balances.

5. Is there a different budget for buildings and other capital projects?
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Yes. The state capital budget process is on a different biennial cycle from the operating budget. While FY 06 is the beginning of a new biennium for the operating budget, FY 06 is the second budget year in the capital budget biennium. They are two separate and distinct sources of funds to be used for two very different purposes. The capital budget is used to renovate and build facilities. The operating budget is used to fund the day-to-day operations of the institution.