Castle<strong>to</strong>n <strong>State</strong> CollegeChapter 9: Financial Resourcesthe principal sources of the college’s revenue and how those have changed over a nine-yearperiod. 4 2002 <strong>2011</strong>Tuition 55% 62%Room and board 21% 22%Appropriations 19% 12%Miscellaneous activities 4% 2%Gifts
Castle<strong>to</strong>n <strong>State</strong> CollegeChapter 9: Financial Resourcesall budget requests <strong>to</strong>gether in a balanced budget. That budget is reviewed by the Board ofTrustees each spring for the following fiscal year. Once the Board approves the budget, spendingis moni<strong>to</strong>red by the Business Office and, more importantly, by each dean and each departmentdirec<strong>to</strong>r. Quarterly moni<strong>to</strong>ring reports are sent <strong>to</strong> each budget manager and dean. Higher-levelquarterly reports are reviewed by the dean of administration and the president before they are<strong>submitted</strong> <strong>to</strong> the Board for its review. Since this model was introduced, the college has finishedeach year not only with a balanced budget, but also with varying levels of carryover funding.Funds are managed on campus by the college’s Business Office. The office has a small staff thatincludes the dean of administration, the budget direc<strong>to</strong>r/controller, an accounts payablesupervisor, and an accounts receivable supervisor, with support from an administrative assistant.The Business Office oversees budgets and payment of invoices; student billing; fundmanagement, including grants; and auditing, as well as a wide array of smaller tasks. Payroll issupervised and administered by the Human Resources Office.The college has worked hard <strong>to</strong> manage its growth and development through both masterplanning and budget processes. The master planning process has allowed us <strong>to</strong> set enrollmenttargets that are consistent with Castle<strong>to</strong>n’s facilities and personnel resources. Through the annualbudgeting process, the college asks every academic and administrative department <strong>to</strong> relate itsefforts <strong>to</strong> overall institutional goals. Each year, as departments work <strong>to</strong> establish the next fiscalyear’s budget, direc<strong>to</strong>rs are given a copy of the strategic priorities for the year. They then usethose priorities <strong>to</strong> help determine spending needs. Once budgets are adopted, all spending isapproved by the appropriate supervisors, who are charged with keeping expenditures withinestablished budget limits. All spending is also reviewed and moni<strong>to</strong>red by the Business Office.Each year the goal is <strong>to</strong> budget a small contingency (1 <strong>to</strong> 2% of the overall budget). Thatcontingency helps cover any revenue shortfalls but can also be used <strong>to</strong> address emergencies orspecial circumstances that arise during the fiscal year. As long as spending is well controlled andthere are no expensive emergencies, at least some of this contingency will be used <strong>to</strong> supportstrategic priorities. The president reviews the list of requested but unfunded items and projectsand, when there is extra money available, approves expenditures accordingly, based on thosepriorities. The college is also required <strong>to</strong> fund a reserve equal <strong>to</strong> 2.5% of the previous year’s <strong>to</strong>talbudget. This reserve is fully funded, and the Board of Trustees must approve any expendituresfrom this account.The college’s fundraising efforts continue <strong>to</strong> improve. Both the number of donors and theamount of money donated have grown, even through the recent challenging economic times. Allthese efforts are managed by the Development Office, which has also effectively strengthenedrelationships with alumni and donors. Development staff are diligent about presenting anaccurate picture of the campus <strong>to</strong> potential donors. The direc<strong>to</strong>r is a member of the president’sCabinet and plays an active role in the administrative leadership of the college. TheDevelopment Office works with donors <strong>to</strong> create endowments, but all formal endowmentagreements must be approved by the president and the Board of Trustees. The office overseesCastle<strong>to</strong>n’s Annual Fund, which continues <strong>to</strong> grow each year. Since fiscal year 2000, we havedoubled the dollar value of annual contributions and increased the number of donors by almost83
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