~
UNIVERSITYBUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY 2008BUDGET
I.
OVERVIEW/EXECUTIVE
SUMMARY
A.
Goals
.
.
.
.
B.
Provideperformanceincentivesfor academicand supportunitsthat are consistentwith the promotion
excellencein carryingout UMKC'smissionsand strategies.
Createa systemin whichnew revenuesgeneratedby enrollmentincreasesand entrepreneurial
endeavorswill inureprincipallyto the financialbenefitof the unitgeneratingsuch revenues.
Establishequitableresourceallocationpoliciesand transparentreportingof thosepoliciesand
their resultsto UMKCconstituencies.
Implementimproveddata systemsand businessprocesses/infrastructure
to bothfacilitate
administrationof the Modeland enhancemanagementtools.
MaiorComponentsof BudQetModel
The majorcomponentsof the proposedBudgetModelare as follows:
Nettuitionrevenuesare allocatedto the Schools/College,
utilizingspecificattributionrulesfor
cross-unitinstruction.
.
.
.
.
Approvedcostsof variousadministrative/support
goodsand servicesand certainspecified
Campus-Wideprogramsare fundedthroughreasonableassessmentson the Schools/College
(excludingGraduateStudies).
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UNIVERSITY
BUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY 2008BUDGET
I.
OVERVIEW/EXECUTIVE
SUMMARY
- Continued
.
A "Chancellor'sPerformanceand SupportFund"is establishedto provideresourcesfor Campus
needsnot otherwisefunded,which may include(1) subsidiesfor programsof excellencethat merit
financialsupportbeyondthe revenuesotherwiseassignedto them, (2) time-limitedplanningfunds
for unitsotherwiseexperiencingsignificantrevenuereductionsin the transitionto the new Budget
Model,and (3) resourcesfor the developmentof improveddatasystemsand business
processes/infrastructu
re.
.
.
.
A "Chancellor'sIncentivesFund"is establishedto provideresourcesfor performanceincentives
basedon a "BalancedScorecard"approachto evaluatingexcellenceand enhancingthe missionof
the University.
Auxiliaryand ServiceOperationschargefair amountsfor goodsand servicesprovidedto other
UMKCunits.The costschargedand qualityof servicesprovidedwill be closelymonitoredon a
regularbasis,as will the overheadassessmentsthat theseAuxiliaryand Serviceoperationspay
to centraladministrationunits.
Eachleaderof a ResponsibilityCenterwill be requiredto includein his/herproposedbudgetfor
the upcomingfiscalyear a detailedexplanationof the unit'splans,includingplansfor managing
and utilizingCurrentUnrestrictedExpendableFundBalances.These explanationswill be
reviewedthrougha formalbudgetpresentationprocessby the applicableVice Chancellorand,
in an advisoryrole only,the UBC(or a subcommitteedesignatedby the UBC). Absent
Universityfinancialexigency,the presumptionwill be that each ResponsibilityCenterwill retain
100%of its CurrentUnrestrictedExpendableFundBalancesunlessthe Chancellor,after
receivingrecommendations
from.theVice Chancellorsand the UBC (usingguidelines
discussedin Part1/below),determinesthat it is appropriateto transfera portionof one or more
of thosebalancesto the Chancellor'sIncentivesFund;Campus-WideReserves,Contingencies,
and ObligationsFund;or Performanceand SupportFund(collectively,the "Chancellor's
DiscretionaryFunds").
.
In additionto the UBC,the followingtwo committeeswill play importantadvisoryroleson UMKC
resourceallocationdecisions:(1) a "SupportCostsReviewCommittee"(formedas a
subcommitteeof the UBC),and (2) an enhanced"ProgramsEvaluationCommittee."~
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Model-March26,2007- Page2
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UNIVERSITY.8UDGETiCOMMITT
EE
RECOMMENDED
MODELFORUMKCFY2008 BUDGET
II.
SPECIFICSOF BUDGETMODEL
A.
ResponsibilitvCentets
.
.
.
Subjectto modificationas changesto organizationalstructureor othercircumstancesdictate,the
"Responsibility
Centers"underthe new BudgetModelare as listedin Appendix1. EachResponsibility
Centerwill (1) be held accountablefor its fiscal performanbe;(2) be requiredto prepareoperatingbudgets
and performanceplansfor an annualformal"BuqgetPresentation"beforethe applicableVice Chancellor
and/orhis/herdesignee,and, in an advisorYcapacityonly,the UBCor a subcommitteedesignatedby the
UBC,a processthat can resultin approvalor modificationof the proposedbudget;and (3) be eligibleto
receive
emergency
or transition
supportand. performance-based
allocationsfrom the Chancellor's
Discretionary
Funds.
.
EachResponsibilityCenterwill be accountableto build budgetsbasedon all spendingneeds. This will
includespendingneedsassociatedwith the Ope'ratingFund,Auxiliaryand ServiceFunds,Continuing.
Education,and RestrictedGift anp GrantFunds..This budgetplan will needto accountfor all expenditure
needsof the ResponsibilityCenter,includingpersonnelcosts,operatingneeds,and any new program
initiatives. ResponsibilityCenterswill also needto forecastall directlyattributedrevenuesin their budget
submissionsand identifyany new revenuesources.
All sub-unitswithina ResponsibilityCenterwill be responsibleand accountablefor providingthe
necessaryinformationfor their applibableP9rtionsof their ResponsibilityCenter'sBudgetPresentation.
B.
InitialAttributionof Revenues,
GeneralTuition
';>
"
Generalnet tuitionis attributedto the Schools/College
in accordancewith the proceduresset forth
in Appendix2. In keepingwiththe premisethat eachSchool/Collegewill keep its owntuition,the
differencebetweenthe estimatedgeneralnet tuitionattributedto each academicunit for the fiscal
year andthe actualnet tuitionof that unit peryear-endaccountingwill be reconciledby year-end
cashadjustment.The officialsourceof studentcredithour(SCH)data for these and other
computationsunderthe BudgetModelwill be the UniversityIntegratedDataSystem(U/IDS). The
year-endreconciliationto actualwill be implementedby adjustmentto the OperatingFund
balanceof each affectedSchool/College
duringthe first quarterof the followingfiscalyear.
2.
StudentFees
,,','
,
,
'
Appendix3 lists all currentfees,apartfr()mgeneraltuition,chargedto UMKCstudents,showing
the nameand amountof the fee and the'ResponsibilityCenterto which each suchfee is
designated/specifically
attributed. Instructionalfees will flow to the instructionprovider,which
mayor maynot be a student's"home"unit.The SupportCostsReviewCommitteeand the
ProgramsEvaluationCommittee,as applicable,»,iIIhave,as part of their charge,the
responsibilityto reviewand reportto the Chancellorand the UBCon the amountsand uses of
these
fees.
'
'
:>,',
',.
,"
'
,
' :i~ :"',:,
:
"
' :", ,':
",:"
..
'
Recommended
Model- March26,2007- Page3
~
UNIVERSITYBUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY 2008BUDGET
II.
SPECIFICS
OFBUDGET
MODEL-Continued
3.
State Appropriation
The entireStateAppropriation(lessany portionthereofthat the Chancellordirectsto one or
moreof the Chancellor'sDiscretionaryFunds,as describedfurtherbelowand any amountsthe
MissouriLegislaturespecificallyearmarkedfor particularprograms)is apportionedamongthe
Schools/College
(excludingGraduateStudies). This sharingof the StateAppropriationis in the
ratioof studentcredithours,weightedto take into accountestimatesof varyingcostsof
instruction.Suchweightingis basedon nationaldatafromthe annualDelawareCostStudy.
Appendix4 containsa descriptionof the use of the DelawareCost Studyand an illustrationof
the resultingratiosfor allocationof the StateAppropriation.In conjunctionwith the year-end
reconciliationof .budgetedto actualnet tuitiondescribedabove,the StateAppropriation
allocationswill also be recomputedto reflectactualSCH,and appropriateadjustmentto the
OperatingFundbalancesmadeduringthe first quarterof the followingfiscal year.
4.
Auxiliaries, Service Operationsand Continuing Education
Each ResponsibilityCenterwith an Auxiliary,ContinuingEducationor ServicesOperation
programis allocated100%of the.revenuesgeneratedby such program,less the special
assessmentscurrentlyimposedunderUM-Systemor UMKCpolicies. The revenues
representedby suchassessmentsare allocatedto the Chancellor'sCampus-WideReserves,
Contingencies& ObligationsFundas describedfurtherbelow.
5.
RecoveryF & A
.
The UBChas beeninformedthat the Chancellorand Provostare currentlystudying
UMKC'sRecoveryF & A in general,and maybe proposingsignificantchangesin how
it is allocatedand utilized.
.
The BudgetModelwill in due courseincorporatethe ultimatedecisionon the
allocationsof RecoveryF & A madeby the Chancellorand Provostwith inputfromthe
UBCand variousaffectedUMKCconstituencies.
.
Restrictedgift and restrictedendowmentincomeare creditedto the respective
ResponsibilityCenterssatisfyingthe applicabledonorconditions.
.
Unrestrictedgift and unrestrictedendowmentincome,not previouslyattributedto a
specificUnit,are creditedto the Chancellor'sDiscretionaryFunds(and apportioned
amongthem in such ratioas the Chancellordetermines,with advicefrom the Vice
6.
~
UNIVERSITYBUD~ETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY 2008BUDGET
>.
II.
SPECIFICS
OFBUDGET
MODEL.Continued
.
..'
It
.
Miscellaneousrevenuesnot attri~utedby operationof therules describedin the
foregoing
provisions
of thisPartII:B,aresimilarlycreditedto the Chancellor's
DiscretionarY
Funds,with the fbll()wing(3xceptions:
(a) any such miscellaneous
revenuesthat in th.eFY07budgetare speciallyallocatedto other Responsibility
Centerswill continueto be so allocatedand (b) unlessotherwisedeterminedby the
Chancellor,with inputfrom applicableadvisorybodies,100%of any new typesof
revenuecreatedby a ResponsibilityCentershall be allocatedto that Responsibility
Center.
c.
.
.
.'.
OperatingCostsand Mechanisms
to FundVariousCampusNeeds/Investments
1.
DirectlyTraceableOperatingCosts
.
Operatingcoststhat are directlytraceableto individualResponsibilityCenterswill be chargedto
the centersthat gaveriseto theco.sts.Typical eXamplesof suchcostsinclude,but are not
limitedto, salaries,wages,benefits,supplie$,andpthernormal
normalcostsof operation.
.
2.
.
.
.
Assessments to Fund CertainAdmipistrEltionand Support Centers
Appendix5 listsseveralResponsibilityCentersthat provideacademicand supportservicesor
goodsfor variousCampusneedsor representspecificrecurringCampus-Wideprograms.
Specificamountsof revenueto covercostsof these units/programs
will be raisedthrough
assessmentsimposedon the Schools/College
by usingthe allocationbases noted. The bases
selectedare deemedfair and appropriateto allocatethe varioustypesof services,goodsor
programs
in question. Because/ofthe administrativecomplexitiesand limitedimpactthat would
programs
be involved,the assessmentsreflectedin Appendix5 will not be recomputedto take into
into
accountdifferencesbetweenestimatedand actualSCHfor the year.
The dollaramountsof revenuetb be directedt() the items
itemslistedin Appendix5 will be
determinedby the Chancellorafter receivingrecommendations
from the applicableVice
Chancellorsand the UBC(orits de$ignatepsubcommittee),
followingthe applicableBudget
Presentations.The BudgetPres~ntatipnsprocesswill includeconsiderationof (a) all other
sourcesof revenueavaUabletothese l1esponsibilityCentersand (b) inputfrom the Support
CostsReviewCommitteeregardiJlgthe reasonableness
of the proposedexpendituresof such
Centers,so as to minimizethe amountsto be chargedto the Schools/College.In general,the
SupportCostsReviewCommitteewill be chargedwith lookingfor waysto avoid unnecessary
duplication,conserveenergy,ensureequity~nd predictabilityin "charge-backs,"reviewthe
amountsand usesof studentfees allocatedto administrativeand supportunits,and otherwise
promoteefficienciesin administr~tive
and.supportunits.
admin
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Model- March26,2007- Page5
~
II.
UNIVERSITYBUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY2008BUDGET
SPECIFICSOF BUDGETMODEL- Continued
Informationcollectedand suggestionsmadeby the SupportCostsReviewCommitteeshould
be consideredby the Chancellor,the Provost,the UBCand other UMKCbodiesin a
collaborativeprocessin whichany resultingdecisions/actions
will be madewith a Universitywide perspective.Thus,the modelshouldnot be construedas a license,beyondany discretion
existingundercurrentpractices,for any campusunitto unilaterallydecideto handle"in house"
or to "outsource"(Le.,outsideof UMKC)functionscustomarilyprovidedby other UMKCunits. It
will ultimatelybe up to the Chancellor,with inputfrom otherconstituenciesin a shared
governanceformat,to determinethe degreeof centralization,decentralizationand outsourcing
appropriate,takinginto accountall relevantconsiderations(includinglegalrequirements,
Systemmandates,and issuesof cost, security,qualityand efficiency).
The SupportCostsReviewCommitteeshall includefaculty,deansand administrative
personnel,alongwith one or moreexternalevaluatorswith appropriateexpertise. If it is not
feasibleto organizethe SupportCostsReviewCommitteeon a timelybasisin the FYOBbudget
process,the Chancellorwill determinethe StateAppropriationallocationsto such administrative
and supportunits,with inputfrom the UBC.
3.
Chancellor's Discretionary Funds
The newBudgetModelincludesthe creationand maintenanceof three separatefundsto be
disbursedat the discretionof the Chancellor,uponadviceand recommendations
fromthe Vice
Chancellorsand the UBC(or an applicablesubcommittee).TheseChancellorDiscretionary
Fundswill all have potentialaccessto the followingthree sourcesof funding(hereinafter,
"CommonDiscretionaryFunding"):
i. Suchportionof the StateAppropriationas the Chancellor(withthe adviceof the Vice
Chancellorsandthe UBC)directsto these DiscretionaryFunds(collectively);provided
that, absentfinancialexigency,this amountof the budgetedStateAppropriationshall not
exceedthe sum of (A) 3% of the prioryear'sactualStateAppropriation(e.g.,for the.FY08
budget,3% of the FY07StateAppropriation)and (B) up to 100%of the increase(if any)
. in thebudgeted
StateAppropriation
forthefiscalyearin questionas compared
withthe
prioryear Appropriation.In the eventthe budgetedStateAppropriationrepresentsa
decreasefrom the priorfiscalyear,the foregoinglimitationwouldbe 3% of the prior year
Appropriation;
ii. Any new outsidesourcesof funds (Le.,fundsotherthan those generatedby other UMKC
ResponsibilityCentersor the StateAppropriation)that are not otherwiseassignableto a
ResponsibilityCenterand that the Chancellorearmarksfor one or more of the
Chancellor'sDiscretionaryFunds;and
iii. Fundsfrom CurrentUnrestrictedExpendableFundBalances(i.e.,Operating,Continuing
Education,Auxiliaryand ServiceOperationsfund balances),but onlyto the extent
determinedin accordancewith the CurrentFundBalancesPolicyset forth in D. below;
As describedbelow,two of the DiscretionaryFundswill, in additionto CommonDiscretionaryFunding,
haveaccessto otherspecifiedresources.
II.
ued
Recommended
Model- March26,2007- Page6
~
.COMMITTEE
UNIVERSITY
BUDGET
RECOMMENDED
MODELFOR UMKC FY 2008 BUDGET
(a)
(b)
Campus-WideReserves,Contingencies & Existing Obligations Fund
The Campus-WideReserves,Contingencies & Existing Obligations Fund will holda
Campus-Wideequipmentreserve,contingency/emergencies
reserveand a reservefor
plannedretirementof UMKCobligationstargetedby the Chancellor.The UBCwill
makerecommendations
to the Chancellorregardinga planto retirethe targeted
financialobligationsrelatingto Twin Oaks,the HealthSciencesBuilding,the Cherry
Streetresidencehall and any other obligationsthat the Chancellormayfromtime to
time ask the UBCto address. In additionto potentialCommonDiscretionaryFunding,
the Campus-WideReserves,Contingenciesand ObligationsFundwill be allocatedthe
cost recoveryfundspaidannuallyby certainauxiliary,serviceand Continuing
Educationoperations.
Chancellor'
s Performanceand Support Fund
The Performanceand SupportFundis to be maintainedas a potentialsourceof
financialsupportfor: CulturalEvents,CentralTicketOffice,Athletics,Athletic
Scholarships,and any ResponsibilityCenterthat evidencesa needfor supportafter
takinginto accountall of its otheravailablesourcesof revenue. Recipientsof
resourcesfrom this Fundmightinclude,for example,unitsthat wouldotherwisehave
expensesexceedingrevenuesbut are deemeda priorityin promotingexcellenceat
UMKCand are effectivelyadvancingthe University'smission,goals,strategiesand
reputation,as well as unitsin needof short-termassistancewhiletransitioningto a
sustainablefinancialmodel. It is expectedthat in exercisinghis/herdiscretionwith
respectto disbursementsfromthis Fund,the Chancellorwill makea careful
examinationof the performance,valueand long-termsustainabilityof a subjectunit,
takinginto accountany revenue-generating
plans,othergrowthplansand/or
streamliningmeasurespresentedby the unit.
In additionto potentialCommonDiscretionaryFunding,the Performanceand SupportFund
will haveaccessto equitablere-allocationsby the Chancellorof portionsof rate moneythat
wouldotherwisebe creditedto other ResponsibilityCentersunderthe BudgetModel. Such
re-allocationswill be madeonly after informedinputby the UBC and thorough"disClJssions
withthe leaderof each ResponsibilityCenterthat wouldexperiencea rate moneyreduction
and eachthat wouldreceivethe re-allocatedfunding,as well as the applicableVice
Chancellors.It will be a priorityof the Chancellorand the UBCto makesure any such
reallocationsare donein a rationaland sy&tematicmanner,taking into accountthe total
resourcesreasonably.
availableto each unit,as well as each unit's reasonableexpenditures
needsand performance(based~n the BalancedScorecardapproachdescribedbelow).
Priorto any final "Releaseof Funds"the specificamountsand justificationsfor suchreallocationswill be madetransparentto the variousCampusconstituencies.
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Model- March26,2007- Page7
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UNIVERSITYBUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY 2008BUDGET
II.
SPECIFICSOF BUDGETMODEL- Continued
(c)
Chancellor's Incentives Fund
The Chancellor'sIncentivesFundis designedto providesignificantperformanceand
programdevelopmentincentives,in the form of recurringfundingand/orone-timeor
plannedmulti-yearfunding,basedon the "BalancedScorecard"approachto
encouragingand recognizingexcellenceand the attainmentof key strategicgoals(see
Appendix6). ResponsibilityCenterleaderswill be requiredto includeinformationin
their annualbudgetsubmissionsthat disclosesperformancemeasuresresultsfor the
prioryear and their unit'sgoalsfor the upcomingyear.
BalancedScorecardreviewwill be a regularpart of the annualBudgetPresentation
processfor eachResponsibilityCenter. The BalancedScorecardsystemwill require
the organizationof an enhancedProgramsEvaluationCommitteeto overseethe
applicationof appropriateunit-specificand Universityperformancemeasuresto each
academicResponsibilityCenter(for this purposeincludingthe Schools/College,
GraduateStudiesand all Libraries).Similarly,the new SupportCosts Review
Committeewill overseethe applicationof performancemeasuresto each administrative
and supportResponsibilityCenter.
The Chancellor'sIncentivesFundwill be fundedexclusivelythroughCommonDiscretionary
Funding.
D.
Current Fund Balances Policy
Eachleaderof a ResponsibilityCenteris requiredto includein his or her proposedbudgetfor the
upcomingfiscal yeara detailedexplanationof unit plans,includingplansfor managingand utilizingthe
unit'sCurrentUnrestrictedExpendableFundBalances.Theseexplanationswill be reviewedas part of
the BudgetPresentationprocess. AbsentUniversityfinancialexigency,the presumptionwill be that
each ResponsibilityCenterwill retain 100%of its CurrentUnrestrictedExpendableFund Balances
unlessthe Chancellor,afterreceivingrecommendations
fromthe Vice Chancellorsand the UBC(or an
applicablesubcommittee),
determinesthat it is appropriateto transfera portionof one or moreof those
balancesto the Chancellor'sDiscretionaryFunds.
In makingrecommendations
to the Chancellorregardingpossibletransfersout of CurrentUnrestricted.
ExpendableFundBalances,the applicableadvisorybodiesshallconsider,withoutlimitation:(a) the
natureof the reservesrepresentedby such balances(e.g.,legalcommitments,ResearchIncentive
Funds,equipmentreplacement,new hire start-up,contingency,etc.);(b) the applicableResponsibility
Center'sprospectsof generatingnew/increasedoperatingrevenues;(c) the applicableResponsibility
Center'sperformanceunderthe BalancedScorecardmeasures;(d) compliancewith UM-System
requirements;(e) coordinationwith the workof the CampusFacilitiesCommitteeand with other UMKC
reserves;and (f) a generalrule of thumbthat, absentextraordinarycircumstances,no Responsibility
Centershouldin any fiscalyear be subjectto an involuntarytransferof morethan 20% of any of its
CurrentUnrestrictedExpendableFundBalances.
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Model- March26,2007- Page8
~
II.
UNIVERSITY
BUDGETCOMMITTEE
RECOMMENDED
MODELFORUMKCFY2008BUDG
ET
SPECIFICS
OFBUDGET
MODEL-Continued
E.
BudQet ProcessTimetable
Attached as Appendices 7A and 78 are, respectively, proposed timetables for the budgeting process for
FYO8and subsequent years.
F.
Releaseof FundsProcedure
In orderto implementthe above-described
resourceallocations,and ratherthan havingactualcash
transfersto and from multipleunitsfor eachstep,the Finance/Budget
Officewill do the computations
necessaryto implementall of the allocationsrequiredby the BudgetModel,and then use a "releaseof
funds"approachto actuallyimplementthe net resultsfor each Responsibility
Center.
G.
ContinQencvPlan Re: SiQnificantChanQes~rcumstances
The recommended
BudgetModelfor FYOBis basedin largepart on recenttrendsin the amountsof
variousresourcesavailableto UMKCand someassumptionsaboutkey items,such as the likelylevelof
the StateAppropriationfor comingyears. The UBCrecognizesthat a varietyof circumstancescould
significantlychangeover time and necessitatembdificationof the BudgetModelfor FYOBor subsequent
years. Accordingly,the UBCwill work with the Chancelloron the developmentof contingencyplansto
appropriatelyalter resource.allocationsto take into accountsuchpossiblechangesas significantreduction
or increasein the StateAppropriation,legislativeearmarkingof new Statefunding,items(suchas utilities
costs)that maybe particularlyvolatile,or thereceipt of majornew restrictedor unrestrictedgifts for UMKC
unitsor programs.Amongotherthings,such planswill adoptan approachin whichthoughtfulunit-by-unit
impactanalysesare preparedand considered,and resourceallocationmodificationsmadein a targeted
manner,consistentwith missionenhancement,ratherthan throughacross-the-board
measures.
H.
Financial Reports
A subcommitteeof the UBC,with inputfrom the Deans'Counciland the FacultySenateBudget
Committee,will workwith the UMKCFinanceoffice,unit businessand fiscalofficers,and other
appropriatepersonnelto createtemplatesfor user-friendlyfinancialreports. Thesetemplateswill
facilitateimplementation
of the new BudgetModeland promotetransparencyin communicatingthe
resultsof the operationof the Modelto UMKCconstituencies.
~
UNIVERSITYBUDGETCOMMITTEE
RECDMMENDEDMODELFORUMKCFY 2008BUDGET
/II.
COORDINATION
WITHOTHER
CAMPUS
INITIATIVES
A. Improved
Business
Infrastructure
A budgetmodel,though,is only one tool that managersuse in tryingto plan,control,and evaluatethe
performanceof a largeand complexorganization.Someof the mostbasictoolsthat createa "supporting
cast"are absenthereat UMKCdueto an inadequatefinancial,reporting,and businesspractices
infrastructure.UMKChas not investedthe requisiteresourcesin suchinfrastructure,as evidencedby
manyexamplesof datathat are too frequentlydifficultto accessand/orunreliable,as well as an absence
of systemsto generatecertaintypesof informationthat one wouldnormallyexpectan operation.of this
size to utilizein makingmanagementdecisions.In combinationwith on-goingrequeststo do morewith
less,it is evidentthat we are laboringwithina deficientbusinessmanagementenvironment.PeopleSoft
will no doubthelpto somedegree. However,by continuingto operatein this fashion,unit administrators
(deans,vice chancellors,directors,and others)are handcuffedwhentryingto performtheir duties.
To addressthis situation,the UBCstronglyrecommendsthat in conjunction
with adoptionof the new
BudgetModel,the Chancellorshouldimplementa three-yearprojectto
enhanceUMKC's
significantly
businessprocesses/infrastructure.
This may include,but is not limitedto, making
out of the
expenditures
Chancellor'sPerformanceand SupportFundrelatedto personnel,informationsystems,business
processes/practices,
and data bases,all of whichare designedto improveinformation,process,and task
efficienciesin a financiallybeneficialmanner. The UBCis fearfulthat withoutimmediateattentionto this
situation,UMKC'sfuturefinancialand operatinghealthwill be severelytested. Whilewe believethe new
BudgetModelis definitelya step in the rightdirection,we cautionthat the modelcannotwork in isolation;
it needsan improvedinfrastructureand varioussupporttools in placeif its goalsandobjectivesare to be
achieved.
B.
ComprehensiveReviewin Context of Coordinated Vision
The implementation
of a new budgetmodelat an institutionas largeand complexas UMKCwill no doubt
involvesomegrowingpainsand consequentneedfor adjustmentto addressproblems,improve
performanceincentivesor resolveunanticipatedissuesthat mayarise. Whilethis processof adjustment
will be continual,the UBCrecommendsthat there be a comprehensivereviewof howthe entireBudget
Modelis workingaftera reasonablenumberof years,and suggeststhat the Chancellorcommissionsuch
a reviewat a timethat is no lessthan three,but no morethan five yearsafterJuly 1, 2007. As reflectedin
the BudgetModel'sutilizationof the BalancedScorecardapproachto the Chancellor'sIncentivesFund,
the UBCadvocatesclosecoordinationbetweenUMKCresourceallocationsfor bothAcademicand
AdministrativeSupportUnits,and the vision-orientedactionplans'bemg developedby the Chancellor,the
Provostand otherCampusleaders.
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Model- March26,2007- Page10
~
UNIVERSITY
BUDGET
COMMITTEE
RECOMMENDED
MODELFORUMKCFY2008BUDGET
III.
COORDINATION
WITHOTHERCAMPUSINITIATIVES.Continued
B.
ComprehensiveReviewin Context of Coordinated Vis!on . Continued
Accordingly,whenthe comprehensivereviewof the earlyyearsof implementationof the new Budget
Modelis undertaken,a majoremphasisof that reviewshouldbe an assessmentof how well the Modelis
workingin relationto the UMKC'smissionand strategies. In this regard,reviewof the performanceof the
new modelshouldincludetracking/measurement
of performancetowardthe achievementof high-level,
campus-widegoalsand include,amongothermeasures,considerationof the followingquestions:
1. To the extentdeterminable,did the unitsthat generatedthe fees benefitfromthem? If so, how
did they benefit?
2. Haveour reportingsystemsbecomemoretransparent?
3.
avoidedthepotential"silo"effects?
4.
a declinein studentfeesor other
5.
6.
themodel?"
RecommendedModel- March26. 2007 - Page11