Happy Valley University (HVU) needs to establish a budget for the upcoming calendar year.

The current Budget Director has retired so you and your Team have been brought in establish a budget for the coming year.

You are being tasked to develop a balanced budget (meaning No Profit, since HVU is a non-profit) and a tuition rate per credit hour for students to pay in the coming year.

FACTS:

REVENUES:

HVU has three semesters during a calendar year. There are 10,000 students during the Fall and Winter semesters and 3,000 students during the Summer semester. Class size averages 30 students per class and students take an average of 12 credit hours per semester. As such, 334 professors are employed during the Fall and Winter semesters and 100 professors are employed during the Summer semester. Tuition is currently set at $80.00 per credit hour.

Sports generate a total of $500,000 through gate receipts and concessions during the calendar year.

HVU receives from State appropriations, $5,000,000 per calendar year (divide equally to 3 semesters)

HVU receives from annual Endowments, $500,000 per calendar year (divide between Fall and Winter semesters)

EXPENSES:

Faculty teach 12 credits (4 classes at 3 credits each) per semester.

The average Faculty salary is $60,000 academic year, plus benefits that run at 30% of salaries. Faculty receive as additional 30% of their salary for teaching Summer classes, if they choose to do so (no additional benefits)

There are four colleges within HVU: College of Business, College of Technology, College of Arts and Science, and College of Health Science. Each college has a Dean, and Associate Dean and each has their own Admin Assistant. Each college is allowed to spend $100,000 per calendar year on supplies, travel, telephone, and miscellaneous expenses. (You will need to establish your own salaries for the Dean, Assoc. Dean, plus benefits at 30%)

The Executive Office has a President and two Vice Presidents and each has their own Admin Assistant. The President and Vice Presidents each spend $100,000 per calendar year for supplies, travel, telephone, and miscellaneous expenses. (You will need to establish your own salaries for the President, VPs, and Admins plus benefits at 30%)

HVU also has the following extra curricula activities that need to be funded:

Football $450,000 during the Fall semester

Hockey $400,000 during Fall semester, Winter semester

W. Basketball $100,000 during the Winter semester

M. Basketball $100,000 during the Winter semester

W. Volleyball $175,000 during the Winter semester

W. Softball $175,000 during the Winter semester

Maintenance will cost 2% of tuition

Utilities will cost 3% of tuition

Business office expenses are $250,000 per year (divide equally to 3 semesters)

Financial Aid office expenses are $175,000 per year (divide equally to 3 semesters)

ADDITIONAL COMENTS:

Because HVU is a non-profit organization, the goal is to budget for net income that is as close to zero as possible. An acceptable range for your final results will be plus/minus $10,000.

Wherever specific information is not given regarding the amount of an expense, you will need to decide how much it should be. You may not change any given numbers, except for the rate of tuition per hour.

Spreadsheets need to be Excel based worksheets.

REQUIRED:

-Develop a total REVENUE BUDGET including all sources listed above by semester and in total for the year.

-Develop a total LABOR BUDGET (including benefits) by semester and in total for the year. Include all employees. Faculty may be lumped into one line item.

-Develop a total EXPENSE BUDGET for all expenses (which includes labor) by semester and in total for the year.

-Develop an INCOME STATEMENT that includes all revenues and expenses by semester and in total for the year.

-Prepare a NOTES and ASSUMPTIONS page giving information about any decisions/assumptions you made (such as how much you decided to pay each employee) including what you did to ensure a balanced budget.

FINAL SUBMISSION should be an EXCEL workbook File, Emailed to me and presented as if being submitted to your client for review. It should include:

-Title Page, with your Name, Date, Class, etc.

-Revenue Budget page

-Labor Budget page

-Expense Budget page

-Budgeted Income Statement page

-Assumptions page

HAPPY VALLEY UNIVERSITY REVENUE BUDGET FISCAL YEAR XXX Revenue Winter Summer Total Tuition State Appropriations Sports Endowment Total Revenue - $ Students Semester Tuition 10,000 Fall 10,000 Winter 3,000 Summer 23,000 Total x 12 credits 276,000 Total Credit Hours - Estimated rate per Hour HAPPY VALLEY UNIVERSITY LABOR and BENEFITS BUDGET FISCAL YEAR XXX Employees Salary Headcount Fall Winter Summer Total Faculty (334) Faculty (100) Faculty Benefits 334 $ 100 S - 30% Admin President Vice President Vice President Admin Assistant Admin Assistant Admin Assistant 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 4 $ 4 $ Dean Associate Dean Admin Assistant Admin Benefits 30% Total Labor and Benefits HAPPY VALLEY UNIVERSITY EXPENSE BUDGET FISCAL YEAR XXX Expense Items Fall Winter Summer Total Total Labor and Benefits Supply/Travel/Telephone/Misc Sports Football Hockey M. Basketball W. Basketball W. Volleyball W. Softball Total Sports Business Office Financial Aid Office Maintenance Utilities Total Expenses HAPPY VALLEY UNIVERSITY BUDGET INCOME STATEMENT FISCAL YEAR XXX Fall Winter Summer Total Revenue: Tuition State Appropriations Sports Endowment Total Revenue Expenses: Labor and Benefits Supply/Travel/Telephone/Misc Sports Business Office Financial Aid Office Maintenance Utilities Total Expenses Net Income HAPPY VALLEY UNIVERSITY NOTES AND ASSUMPTIONS FISCAL YEAR XXX HAPPY VALLEY UNIVERSITY REVENUE BUDGET FISCAL YEAR XXX Revenue Winter Summer Total Tuition State Appropriations Sports Endowment Total Revenue - $ Students Semester Tuition 10,000 Fall 10,000 Winter 3,000 Summer 23,000 Total x 12 credits 276,000 Total Credit Hours - Estimated rate per Hour HAPPY VALLEY UNIVERSITY LABOR and BENEFITS BUDGET FISCAL YEAR XXX Employees Salary Headcount Fall Winter Summer Total Faculty (334) Faculty (100) Faculty Benefits 334 $ 100 S - 30% Admin President Vice President Vice President Admin Assistant Admin Assistant Admin Assistant 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 4 $ 4 $ Dean Associate Dean Admin Assistant Admin Benefits 30% Total Labor and Benefits HAPPY VALLEY UNIVERSITY EXPENSE BUDGET FISCAL YEAR XXX Expense Items Fall Winter Summer Total Total Labor and Benefits Supply/Travel/Telephone/Misc Sports Football Hockey M. Basketball W. Basketball W. Volleyball W. Softball Total Sports Business Office Financial Aid Office Maintenance Utilities Total Expenses HAPPY VALLEY UNIVERSITY BUDGET INCOME STATEMENT FISCAL YEAR XXX Fall Winter Summer Total Revenue: Tuition State Appropriations Sports Endowment Total Revenue Expenses: Labor and Benefits Supply/Travel/Telephone/Misc Sports Business Office Financial Aid Office Maintenance Utilities Total Expenses Net Income HAPPY VALLEY UNIVERSITY NOTES AND ASSUMPTIONS FISCAL YEAR XXX