2013-14 Operating & Capital Budget Plan - Cornell University ...

UExisting Budget ModelsThe Ithaca campus currently has several budget models in use across the major organizationalunits with some units using multiple models. The primary models are generallydescribed as follows:General Purpose (GP) Budget – The general purpose budget serves as the funding source for allocations to thethree colleges commonly referred to as the GP colleges (Architecture, Art and Planning, Arts and Sciences, andEngineering) and the Graduate School. The GP budget also provides initial funding for institutional administrativeand support costs and undergraduate financial aid that are subsequently distributed to and recovered from themajor revenue producing activities. Tuition and sponsored facilities and administrative cost recoveries receivedfrom activities in the GP colleges are recorded in the GP budget and pooled with other resources received by theGP budget such as unrestricted gifts and endowment payout. The Provost provides an annual allocation to eachof the colleges and support operations. These allocations are not activity based. The allocations are generallysized at historical levels and increased or decreased incrementally each year based on availability of resources.Certain revenues such as professional master’s degree tuition, unit specific gifts, and payout from endowmentsheld within the colleges are distributed directly to each unit. Central university administrative and support costsare calculated for each GP college based on the current CAM, but are funded directly by the GP budget. Similarly,undergraduate financial aid costs for students in the GP colleges as well as space related costs for the GP collegesand units are funded directly by the GP budget.Contract Colleges – Revenues generated by the contract colleges are distributed directly to each college. Stateappropriations are allocated to each college based on the decisions of the Provost, but these allocations are generallysized at historical levels that are increased or decreased incrementally each year based on the change in statefunding. In addition to the state appropriation received by Cornell, NYS also provides financial support through thedirect funding of employee benefit costs for contract college employees and the direct funding for major capitalinvestments provided through the State University Construction Fund. Central university administrative andsupport costs are distributed to each college based on the current CAM. Undergraduate financial aid costs aredistributed to each undergraduate college on a cost basis normalized within the contract colleges. Space relatedcosts such as utilities, building care, and routine and preventive maintenance are pooled for all the contract collegesand funded through an allocation of state appropriation funds.Appendices77Designated Colleges (also referred to as Tub Colleges) – This group includes the School of Hotel Administration,the Johnson Graduate School of Management, and the Cornell Law School. Revenues generated by each of thesecolleges are distributed directly to each college. The Johnson School and Law School establish their own tuitionand enrollment levels. Central university administrative and support costs are distributed to each college basedon the current CAM. Undergraduate financial aid costs are distributed to the Hotel School based on actual costs.Space related costs such as utilities, building care, new construction, and routine and preventive maintenance arepaid directly by each college.