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Volume XCI Number 9	_University of Southern California	Monday, September 14, 1981
Zumberge itemizes $365-million university budget
40% of daily revenue generated by tuition, fees
By Laura Rodriguez
Assistant City Editor
The university’s $365-million yearly budget was illustrated by President James H. Zumberge and the daily operating costs simplified, showing student tuiton and fees comprising 40 percent of the $1 million per day revenue.
He presented the figures in a method of fund accounting —separating all money into categories, with those funds earmarked for certain operational attempts.
For example, in paying out salaries, the university does not have a single account. Specifically for salaries, the money is spread throughout these funds, so the university aggregates all of that in order to get one figure that tells how much money the university is paying. This method illustrates the difficuty in trying to assemble and simplify the budget, and may also lead to misinterpretation.
Zumberge said the difficulty in trying to simplify the budget was that univers-
Business Affairs	Affirmative Action		- — Budget	
				
Treasurer Personnel	University intorrr,a' on Processing fnferna! Audit			Contracts and Grants
RnanoaJ Services				
		■	I j Student Administrative Services	
Organizational Chart
University of Southern California
9-2-81
ZUMBERGE’S WEB —The university's new organizational chart places the president and senior vice presidents at the center of the administrative communications network. It is the first organizational plan to come out of the Office of the President
New officials hope to cure university’s financial woes
By George Aguilar
Staff Writer
In an effort to improve efficiency within the financial affairs department, the university announced this week the appointment of three new administrators.
Jon Strauss, senior vice president for administration, appointed Dennis Dougherty as vice president and comptroller for the university. Strauss also named Michael Taketani as director of internal audit and Peter Cheung as university treasurer.
Strauss hopes the new appointees will be able to improve the efficiency and responsiveness of the financial affairs department, which has had administrative difficulties in the past.
Dougherty, Taketani and Cheung assumed their new posts during the summer, but the university chose to wait
until the semester began to announce their appointments.
As comptroller, Dougherty will supervise the expenditures and accounts of the university. He will head over 100 employees in Student Financial Services and Tuition Audit.
Prior to accepting the post, Dougherty was comptroller at the University of Pennsylvania. He said his main reason for accepting the post was the opportunity to give the university a higher quality of financial services.
“The immediate goal is to consolidate the financial management within the university,” Dougherty said. “The second would be the cost recovery from the federal government."
Dougherty, 44, a nationally recognized expert on cost recovery, hopes to recover funds the government owes the university in research costs.
(Continued on page 9)
ity budgets are one of the most complex in the world of the business industry.
This system is different from the present method in that the current one accounts for each purpose from which all expenses are recorded.
The operating budget was presented in three columns, the first dealing with revenue. With those revenues for the university and the other two columns, Zumberge attempted to show the numerous expenditures and how big an operation the university is.
Inasmuch as the $l-million-a-day budget is an estimate of how much revenue the university takes in and how much is to be spent, the president emphasized that budgets at the beginning of the year are usually in balance, but this equilibrium is similarly anticipated at the end of the year.
Zumberge said that during the past two to three years there have been various budgetary adjustments with the usual misunderstandings by some faculty members that come with these changes. But he added that the adjustments are sometimes necessary because “the university has been able to pride itself on successfully balancing its budget.’’
In relation to the daily revenue, $400,000 a day comes from student’s tuition and fees. If that cost is one percent below enrollment, the president warned, this would mean the university would start the year without $1.5 million.
If the university cannot generate funds elsewhere to offset the difference, the budget at the beginning of the year will pose problems later in the year, resulting in the increase of other fees.
Endowments and investment fees are one area that is being worked on to increase revenues. Zumberge said he hopes the university will experience an increase in gifts because of tax purposes, whereby those citizens using the Internal Revenue Service’s 1040 short form do no have to itemize their deductions but can still make deductions for a charitable donation.
The president also annnounced that a local foundation has established a plan where it will match the difference in gift increases.
Zumberge clarified the $70,000 sales and services revenue with itemizing 80 percent from health services such as the Dental Clinic, County Hospital Agreement and Children’s Hosptal Agreement. Other examples included instructional services through departments and various schools.
The daily expenses were listed b; type and purpose. Compensation for academic, professional support and benefits comprised 61 percent of that total.
It was noted that even though tuition comprises 40 percent of the operational budget, the university subsidizes students to assist them in paying their fees in the amount of $70,000 a day.
(Continued on page 3)
First organization chart introduced by Zumberge
By Laura Rodriguez
Assistant City Editor
University President James H. Zumberge introduced his table of administrative organization at the annual faculty breakfast Saturday, focusing on the idea that the organization does not reflect a pyramid-type structure, but rather puts the president and the executive vice presidents in the center of a web.
The presentation was the first time any organizational structure has been designed through the president’s office linking all components of the university, and clarifies the official’s interaction within the adminstrative framework.
“The Office of the President serves not as a master-mind controller ot this complex structure but as a coordinator, facilitator, manager and provider of task data from which we owe these to base our decisions,” Zumberge explained.
“The Office of the President has the responsibility to maintain consistency of practice throughout the university that follows general university policy.
“My philosophy of administration is that the structure functions somewhere between entrepreneurs and a rigidly controlled system. I think we can preserve the entrepreneur spirit of the university without letting things run without guidance.”
Zumberge analyzed the structure by pointing out that the process does not intend to isolate the president from occurrences on campus, but will insitute one of four individuals who stand as executive committee representatives.
The president introduced a new concept where the Council of Deans does not appear under the structure of governance — he said the council is more of an adminstrative grouping of university executives — but will report to the Office of the President through the president and the senior vice president of Academic Affairs.
Zumberge also anticipates continuation of uniform policies which should be practiced across the campus. One of the processes he introduced was a planned scheduling system, to eliminate having each department design its own schedule. However, Zumberge said the idea was still in its preliminary stages.
Another area of systematizing Zumberge said was necessary will occur in the capital budget. He stated a need of the allocation and distribution of resources, but that things will commence from the center of the adminstrative web of the university structure and improve on its ability to function.
Besides being directly connected with the various departments and areas of university governance, Zumberge stressed a necessity to interrelate closely with the Board of Trustees as well as hold moderate involvement with external affairs found to be involved in higher education.