Notes

• Line Out Calculations for each revenue category, including Recharge Income, and enter the total amounts into Form R1.
• Self supporting accounts have a wide variety of revenue streams so it is not possible to provide a template that would apply to all accounts. View these examples as a guide in lining out revenue projections.
• Many accounts will only have one revenue category but where there are multiple revenue sources, a schedule is required for each one.
• Note assumptions used to calculate revenue, such as increase or decrease in volume, new customers, new products, price increases, enrollment changes etc.

Current Year²

• Only include revenue that is expected to be received and will post to the account in Current Year2.
  • Cash receipts beginning July 1 will post to the following fiscal year.
  • Recharge and Voluntary Transfers In processed on or after July 1 will post to the following fiscal year.
  • Note the Foundation deadline to request transfers to Gift Accounts for the Current Year2.
• There are a few ways to approach revenue projections for the current year and the correct method will depend on the type of revenue and the accuracy of receivables tracking.

Method 1

Recommended for Student Fees, Sales, Recharge, and Other Revenue.

1. Line out a Total Revenue Projection for the full year.
2. On Form R1-Column D: Enter the Amount Received, per Workday report through the last completed month noted in Cell D09.
3. On Form R1-Column E: Enter the difference between the Total Projection and the Amount Received per Column D.

Method 2

This method should only be used where you have accurate records of outstanding receivables.

1. Line out a revenue projection for the remainder of the Current Year2.
2. On Form R1-Column D: Enter the Amount Received, per Workday report through the last completed month noted in Cell D09.
3. On Form R1-Column E: Enter the Projection for the remainder of the Current Year2
4. Plus outstanding Receivables as of the last completed month noted in Cell D09.

Additional Methods

Trends and averages may also be useful where there are a large number of small revenue streams, such as Indirect Cost Revenue from multiple grants, but should not be substituted for more accurate projections where rates and volumes are available.

Budget Year³

Line out the Total Revenue Projection by category for the full year.

Revenue Projections

The Revenue Projection is a critical part of the budget process. The revenue stream determines what level of activity the account can support so accurate revenue projections contributes to efficient account management. The Current Year2 Ending Balance becomes the Budget Year3 Beginning Cash Balance, which is a significant part of the revenue stream for many accounts. So accurately projecting the Current Year2 Projected activity to arrive at the Ending Balance is an important part of the revenue budget.