TO: PEAR FACULTY and STAFF

FROM: Linda H. Thornton

SUBJECT: Letter of Introduction to the 2006-2007 pear operating budget

DATE: July 25, 2006

In an effort to clarify the institutional operating budget we have initiated several changes to the structure of the 2006-2007 operating budget which we would like to review with you. Several of these changes are being introduced at the institutional level others are specific to PEAR.

Institutional Budget Initiatives:

Specific identification of gift income:

Account 4300 has been added to the departmental budgets to ensure that when gifts are received on behalf of a specific program they are submitted to the gift accounting office and appear in the appropriate donor designated operating budget. This is in no way intended to encourage individual departments to initiate gift solicitations which might conflict with the institutional capital campaign. It does ensure that all gifts (including gifts in kind) are appropriately recorded as campaign contributions and individuals are recognized with institutional gift acknowledgements.

Account 4475 has been added to the departmental budgets to ensure that when miscellaneous revenue is received at the departmental level it is entered appropriately in the operating budget. This applies to attendance fees collected or participant fees paid in support of team or individual travel programs as well as miscellaneous fundraisers for team travel (i.e. bake sales; candy sales, etc.). Miscellaneous income should not be netted with operating expenses.

Professional Services:

Budget Control 5200 Professional Services:

The current operating budget includes professional services within the Miscellaneous Other Control 5900. The significant level of these expenditures necessitates separate identification in order to ensure that we are appropriately evaluating the value of these services received in comparison to other operating budgets.

PEAR Budget Initiatives:

Early Return Fees:

In an effort to clarify that early return fees are not discretionary budgets, the budget allocation previously associated with these expenses has been reallocated from the program budgets and centralized with the Athletic Office. This will enhance program equity and minimize budget fluctuations for the individual programs.

MIAC Event Fees:

In order to more clearly differentiate between MIAC Events and Non-MIAC Events we have added new object codes to the general ledger. As event expenses are incurred they should be charged to the appropriate code.

A complete description of the account codes recommended for the PEAR Operating budget is attached for your review - click here to view. Please feel free to contact us with your questions or concerns.

Sincerely,

Linda H. Thornton

Comptroller

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