Proforma

The Program Financial Impact Analysis (proforma) should consider all revenue and expense changes to the base operating budget for a division, associated one-time expenses, and include all resource reallocation that is a result of offering the proposed new program. Please contact Linda.Kosten@du.edu, Senior Vice Provost, Budget & Administration to notify the intent of submitting a proforma for a program. You will be able to upload this directly to the proposal form in CourseLeaf. Any questions should be directed to the office of budget and planning within the provost office. 

• Revenues

  The revenue section should the change in student headcount (new students to the University) and associated tuition and revenue. Tuition rates should always be proposed at the current-year rate with no modeling for tuition rate increase. Tuition can be calculated by multiplying headcount by estimated average credits taken, multiplied by tuition rate per credit.

  Unfunded aid, in the form of discount and/or graduate assistant waivers) should be considered. Funded aid should also be considered but included only when recognized gifts have been received or agreements are signed. Documentation of funded aid sources should be provided with the proposal.

• Recurring Expenses

  Recurring expenses are those expenses that will become part of the base operating budget and would be incurred year after year. This includes all expected changes to faculty, staff, and student compensation. Supporting schedules should be provided for appointed positions proposed including proposed title, rank, and salary. Fringe rates should be calculated using the current fringe rates. Changes to fringe rates or merit increases in future years should not be modeled.

  All other (non-compensation) direct expenses should be modeled. These do not need to be broken out by account code on the pro forma document but supporting detail can be submitted. 

  Indirect expenses should not be modeled, but expenses to other divisions or institutional expenses should be considered. These might include new technology expenses, human resource expense, need for new space, or marketing and communication expense.

• One-Time Expenses

  One-time expenses might include faculty start-up, building/renovation costs, or program marketing expenses necessary to launch the program but not needed in an ongoing way.

• Timeline and Review

  The New Program Financial Impact Analysis projects five years of revenue and expense activity. The new program, if approved, will be reviewed after five years to compare projected enrollment, revenue, and expense to actual enrollment, revenue and expense. Programs that do not meet expectations are subject to alteration or elimination.