Question

Fund:	222
DeptID:	IT REVOLVING ACCOUNT #777
Prepared By:
	Actual	Actual	Actual	Estimated	THREE-YEAR PLAN
	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
SECTION 1: FINANCIAL DATA
A.  Beginning Balance	$114,112	$43,537	$61,994	$594,894	$468,994	$344,094	$219,194
B.  Revenue:  Misc	461	285	956	50,000	50,000	50,000	50,000
Revenue:  Sales Tax	(37)		(51)
Revenue:  Rental Income,O		13,750	38,000
Revenue:  Sale of Materials	716	264	710
Revenue Transfers	-	35,875	476,217
Total Revenue	1,140	50,173	515,832	50,000	50,000	50,000	50,000
C.  Expenditures
1.  Unclassified Salaries				60,000	60,000	60,000	60,000
2.  Classified Salaries
3.  LTE Salaries			5,998	3,500	3,500	3,500	3,500
4.  Regular Student Help
5.  Work Study
6.  Fringe Benefits			426	30,400	30,400	30,400	30,400
7.  Travel				2,000	1,000	1,000	1,000
8.  Services & Supplies:  M&R		12,195	53,016	120,000	120,000	120,000	120,000
8.  Supplies			495
8.  Food Contracts			195
8.  Services & Supplies: Main.	44,349	22,909
8.  Services & Supplies:  C&P	4,266	1,562	969
8.  Services & Supplies:  E&F		50	1,845
8.  Sales Credits	-	(5,000)	(80,011)	(40,000)	(40,000)	(40,000)	(40,000)
9.  Permanent Property: CE	23,100
Total Expenditures	71,715	31,717	(17,068)	175,900	174,900	174,900	174,900
D.  Net Revenue/(Loss)	(70,575)	18,457	532,900	(125,900)	(124,900)	(124,900)	(124,900)
E.  Ending Balance	$43,537	$61,994	$594,894	$468,994	$344,094	$219,194	$94,294
SECTION 2: NOTES
FY16 & FY17:   Transferring in revenue balances from other accounts so that this will be the only revolving account. Invoices will be charged to this account in future.
FY17:  Transferring in cash because expenditures in prior years posted to other IT accounts in error.
Account is used for infrastucture updates (e.g. routers replacement) and learning space renovation.
Year-end balance should fluctuate around $15K - $20K.
Background:
Unit directors update three-year plans for their program revenue accounts on an annual basis.
The document includes actual account activity for the preceding three years.
Unit directors indicate estimated activity for the current year and their plans for the next three years.
Questions: Overall Big-picture observations are acceptable 1.  Any observations you would like to make about the actual activity of the past three years, and the estimated or planned activity for the current and next three years. 2.  Any questions that the activities and/or the section 2 notes raise in your mind. 3.  Comments / suggestions on the three-year plan, its strengths and weaknesses, its sustainability over time, etc

Answer 1

1.

• Revenue Miscellaneous and revenue from sale of materials has decreased in year 2015-16 then again it was increased in year 2016-17 the decrease and increase are showing similar patterns.Revenue miscellaneous estimations for the next 3 years appears too unreasonable.
• Revenue rental income and revenue transfers have risen steadily from 2015-16 to 2016-17.
• expenses like LTE Salaries,Fringe Benefits,Supplies,Food Contracts are only in year 2016-17 and not in previous years.
• Unclassified salaries did not exist for actual years 2014-15 and 2016-17 but it was there was salary for estimated figures for estimated and the next 3 years.
• Fringe benefits existed for 2016-17 actual and for estimated and next 3 years it was fixed at much higher amount at fixed amount.
• Few expense like  Supplies,Food Contracts,Services & Supplies: Main,Services & Supplies:C&P,Services & Supplies:E&F existed in actuals but id not exist in estimated figures for 2017-18 to 2020-21