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budget for faculty salaries

(See attached file for full problem description)

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Suppose you are the controller of Western Idaho State University. The university president, Willa Redcloud, is preparing for her annual fund-raising campaign for 2001-2002. To set an appropriate target, she has asked you to prepare a budget for the academic year. You have collected the following data for the current year (2000-2001):

Undergraduate Graduate
Division Division

Average salary of faculty member $46,000 $46,000
Average faculty teaching load in semester
credit-hours per year (eight undergraduate
or six graduate courses) 24 18
Average number of students per class 30 20
Total enrollment (full-time and part-time
Students) 36,00 1,800
Average numbers of semester credit-hours
carried each year per student 25 20
Full-time load, semester hours per year 30 24

For 2001-2002, all faculty and staff will receive a 6% salary increase. Undergraduate enrollment is expected to decline by 2%, but graduate enrollment is expected to increase by 5%.

? The 2001-2002 budget for operation and maintenance of facilities is $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 $120,000 in 2001-2002.
? The 2000-2001 and 2001-2002 budgets for the remaining expenditures are
________________________________________________________________________
2000-2001 2001-2002
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 $70 per credit hour. In addition, the state legislature provided $780 per full-time equivalent student. ( A full-time equivalent is 30 undergraduate hours or 24 graduate hours) Tuition scholarships are given 30 full-time undergraduates and 50 full-time graduate students.
? Revenues other than tuition and the legislative apportionment are

2000-2001 2001-2002
Endowment income $200,000 $210,000
Net income from auxillary
Service 325,000 335,000
Intercollegiate athletic receipts 290,000 300,000

? The chemistry/physics classroom building needs remodeling during the 2001-2002 period projected cost is $ 575,000.

1. Prepare a schedule for 2001-2002 that shows, by division, (a) expected enrollment, (b) total credit hours, (c) full-time equivalent enrollment, and (d) number of faculty members needed.
2. Calculate the budget for faculty salaries for 2001-2002 by division.
3. Calculate the budget for tuition revenue and legislative apportionment for 2001-2002 by division.
4. Prepare a schedule for President Redcloud showing the amount that must be raised by the annual fund-raising campaign.

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See attached file for full problem description)

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Suppose you are the controller of Western Idaho State University. The university president, Willa Redcloud, is preparing for her annual fund-raising campaign for 2001-2002. To set an appropriate target, she has asked you to prepare a budget for the academic year. You have collected the following data for the current year (2000-2001):

Undergraduate Graduate
Division Division

Average salary of faculty member $46,000 $46,000
Average faculty teaching load in semester
credit-hours per year (eight undergraduate
or six graduate courses) 24 18
Average number of students per class ...

Solution Summary

This provides the steps to calculate the budget for faculty salaries and other budgets

$2.19