Suppose you are the controller of a University. The university president is preparing for her annual fund-raising campaign for 2021-2022. To set an appropriate target, she has asked you to prepare a budget for the academic year 2021-2022. You have collected the following data for the current year 2020-2021: Undergraduate Division Graduate Division Average annual salary of a faculty member $ 58,000 $ 58,000 Average faculty teaching load in semester credit-hours per year (eight undergraduate courses or six graduate courses) 24 18 Average number of students per class 30 20 Total enrolment (full-time and part-time students) 3,600 1,800 Average number of credit hours registered each year per student 25 20 Full-time load, semester hours per year 30 24 For 2021-2022, all faculty and staff will receive a 6% salary increase. Undergraduate enrolment is expected to decline by 2%, but graduate enrolment is expected to increase by 5%. The 2020-2021 budget for operation and maintenance of facilities was $500,000, which includes $240,000 for salaries and wages. Experience so far this year indicates that the budget is accurate. Salaries and wages will increase by 6% and other operating costs will increase by $12,000 in 2021-2022. The 2020-2021 and 2021-2022 budgets for the remaining expenditures are as follows: 2020-2021 2021-2022 General administrative $ 500,000 $ 525,000 Library Acquisitions 150,000 155,000 Operations 190,000 200,000 Health services 48,000 50,000 Intramural athletics 56,000 60,000 Intercollegiate athletics 240,000 245,000 Insurance and retirement 520,000 560,000 Interest 75,000 75,000 Tuition is $92 per credit hour. In addition, the ministry of education provides $780 per full time equivalent student. (A full time equivalent is 30 undergraduate hours or 24 graduate hours). Full tuition scholarships are given to 30 full-time undergraduates and 50 full time graduate students. Revenues other than tuition and the ministry of education apportionment are as follows: 2020-2021 2021-2022 Endowment income $ 200,000 $ 210,000 Net income from auxiliary services 325,000 335,000 Intercollegiate athletic receipts 290,000 300,000 The chemistry/physics classroom building needs remodelling during 2021-2022 period. Projected cost is $575,000. Required1. Prepare a schedule for 2021-2022 that shows, by division, (a) expected enrolment, (b) total credit hours, (c) full-time equivalent enrolment, and (d) number of faculty members needed.2. Calculate the budget for faculty salaries for 2021-2022 by division.3. Calculate the budget for tuition revenue and ministry of education apportionment for 2021-2022 by division.4. Prepare a schedule for the president showing the amount that must be raised by the annual fund-raising campaign.

Suppose you are the controller of a University. The university president is preparing for her annual fund-raising campaign for XXXXXXXXXXTo set an appropriate target, she has asked you to prepare a...

Suppose you are the controller of a University. The university president is preparing for her annual fund-raising campaign for 2021-2022. To set an appropriate target, she has asked you to prepare a budget for the academic year 2021-2022. You have collected the following data for the current year 2020-2021:

	Undergraduate Division	Graduate Division
Average annual salary of a faculty member	$ 58,000	$ 58,000
Average faculty teaching load in semester credit-hours per year (eight undergraduate courses or six graduate courses)	24	18
Average number of students per class	30	20
Total enrolment (full-time and part-time students)	3,600	1,800
Average number of credit hours registered each year per student	25	20
Full-time load, semester hours per year	30	24

For 2021-2022, all faculty and staff will receive a 6% salary increase. Undergraduate enrolment is expected to decline by 2%, but graduate enrolment is expected to increase by 5%.

The 2020-2021 budget for operation and maintenance of facilities was $500,000, which includes $240,000 for salaries and wages. Experience so far this year indicates that the budget is accurate. Salaries and wages will increase by 6% and other operating costs will increase by $12,000 in 2021-2022.

The 2020-2021 and 2021-2022 budgets for the remaining expenditures are as follows:

	2020-2021	2021-2022
General administrative	$ 500,000	$ 525,000
Library
Acquisitions	150,000	155,000
Operations	190,000	200,000
Health services	48,000	50,000
Intramural athletics	56,000	60,000
Intercollegiate athletics	240,000	245,000
Insurance and retirement	520,000	560,000
Interest	75,000	75,000

Tuition is $92 per credit hour. In addition, the ministry of education provides $780 per full time equivalent student. (A full time equivalent is 30 undergraduate hours or 24 graduate hours). Full tuition scholarships are given to 30 full-time undergraduates and 50 full time graduate students.

Revenues other than tuition and the ministry of education apportionment are as follows:

	2020-2021	2021-2022
Endowment income	$ 200,000	$ 210,000
Net income from auxiliary services	325,000	335,000
Intercollegiate athletic receipts	290,000	300,000

The chemistry/physics classroom building needs remodelling during 2021-2022 period. Projected cost is $575,000.

Required

1. Prepare a schedule for 2021-2022 that shows, by division, (a) expected enrolment, (b) total credit hours, (c) full-time equivalent enrolment, and (d) number of faculty members needed.

2. Calculate the budget for faculty salaries for 2021-2022 by division.

3. Calculate the budget for tuition revenue and ministry of education apportionment for 2021-2022 by division.

4. Prepare a schedule for the president showing the amount that must be raised by the annual fund-raising campaign.

Jun 03, 2022

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