University Budget Committee
Scope of Work
• Review strategic mission and priorities as advanced
from Planning Committee
• Ensure budget is aligned with strategic priorities and
mission
• Review peer data and recommend budget allocation
adjustments
• Receive and communicate institutional budget
information to the campus segments you represent
• Review and recommend the biennial budget plan to be
submitted to OCHE
Programmatic Budgeting
Incorporating Strategic Planning into the Budget
Process
FUND TYPES
•
•
•
•
•
GENERAL FUNDS
DESIGNATED FUNDS
AUXILIARY FUNDS
RESTRICTED FUNDS
PLANT FUNDS
STATE APPROPRIATION
OCHE / BOR (Resident FTE Driven)
UM
UM
MSU
WESTERN
TECH
HELENA
TUITION
PRESIDENT
PROVOST
UM
A&F
M.COLLEGE
H&S
Mathematical
Sciences
ENGLISH
RESEARCH
HEALTH
ECONOMICS
STUDENT
SERVICES
I.COMM
LAW
SOCIOLOGY
Layers of the Budget Process
State Appropriation
OCHE Allocation
UM System Allocation
Programmatic Budget Process
Sector Budget Process
College Budget
Process
Department
Budget
Expense Classifications
For external reporting purposes, public colleges and universities have
adopted a standard that has been utilized and refined over the past
couple of decades to standardize reporting.
Currently these standards are reviewed and updated by the NACUBO
Accounting Principles Council.
There are well defined criteria to determine the appropriate
classification for a given expense. These are not established by the
University, but every effort is made to ensure compliance with the
standards.
Expense Classifications
The eight expense classifications used are:
1.
2.
3.
4.
5.
6.
7.
8.
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance
Scholarships and Fellowships
Programmatic Budget Process
1.
2.
3.
4.
5.
6.
Identify all sectors with expenses in a given classification
Calculate the combined three year average for each classification
Evaluate the average against peers, strategic goals, policies, etc..
Establish a target percentage for each classification
Allocate the GF revenues based on the percentages
Run the percentage amount (step #5) through the allocation
process developed for each classification
7. Combined classification allocations are distributed to each sector
Snapshot of Model – Fictitious Example
Sum of PTD_ACTUAL_DR
Row Labels
Academic Support
President
Provost
VP Administration & Finance
VP Research & Development
Institutional Support
VP Integrated Communications
President
Provost
VP Administration & Finance
VP Research & Development
Instruction
Provost
VP Research & Development
Column Labels
12
$ 15,545,004.70
$
149,550.72
$ 15,201,034.83
13
$ 16,369,641.62
$
153,972.82
$ 15,990,929.73
$
194,419.15 $
224,739.07
$ 13,076,497.52 $ 13,765,925.15
$
880,170.39 $ 1,043,182.67
$ 5,391,687.62 $ 5,723,957.81
$
804,093.71 $
862,182.33
$ 4,969,452.23 $ 4,741,575.24
$ 1,031,093.57 $ 1,395,027.10
$ 55,598,300.71 $ 57,139,591.66
$ 55,450,619.48 $ 57,034,201.87
$
147,681.23 $
105,389.79
14
$ 16,281,840.53
$
158,863.38
$ 15,890,573.81
$
(2,574.00)
$
234,977.34
$ 13,113,879.72
$
974,174.76
$ 5,547,004.14
$
847,582.56
$ 4,456,664.79
$ 1,288,453.47
$ 56,776,536.36
$ 56,712,631.80
$
63,904.56
$
$
$
$
$
$
$
$
$
$
$
$
$
$
UM General Funds
3 YR AVG
3 YR AVG %
2017 Target 2017 Pool
16,065,495.62
13.66%
13.66%
$ 16,255,400.00
154,128.97
15,694,179.46
(2,574.00)
218,045.19
13,318,767.46
11.32%
9.36%
$ 11,138,400.00
965,842.61
5,554,216.52
837,952.87
4,722,564.09
1,238,191.38
56,504,809.58
48.04%
50.00%
$ 59,500,000.00
56,399,151.05
105,658.53
Sum of PTD_ACTUAL_DR
Row Labels
Academic Support
President
Provost
VP Administration & Finance
VP Research & Development
Institutional Support
VP Integrated Communications
President
Provost
VP Administration & Finance
VP Research & Development
Instruction
Provost
VP Research & Development
Operation & Maintenance of Plant
Provost
VP Administration & Finance
VP Research & Development
Organized Research
Provost
VP Research & Development
Public Service
VP Integrated Communications
President
Provost
VP Research & Development
Scholarships & Fellowships
President
Provost
VP Research & Development
VP Student Affairs
Student Services
President
Provost
VP Student Affairs
Grand Total
Column Labels
12
$ 15,545,004.70
$
149,550.72
$ 15,201,034.83
13
$ 16,369,641.62
$
153,972.82
$ 15,990,929.73
$
194,419.15 $
224,739.07
$ 13,076,497.52 $ 13,765,925.15
$
880,170.39 $ 1,043,182.67
$ 5,391,687.62 $ 5,723,957.81
$
804,093.71 $
862,182.33
$ 4,969,452.23 $ 4,741,575.24
$ 1,031,093.57 $ 1,395,027.10
$ 55,598,300.71 $ 57,139,591.66
$ 55,450,619.48 $ 57,034,201.87
$
147,681.23 $
105,389.79
$ 7,598,883.18 $ 7,572,189.03
$
56,154.54
$ 7,209,184.16 $ 7,109,818.15
$
389,699.02 $
406,216.34
$ 1,157,211.15 $ 1,363,824.20
$
360,936.23 $
368,257.09
$
796,274.92 $
995,567.11
$ 1,109,377.41 $ 1,117,790.85
$
627,338.01 $
641,703.36
$
84,969.53 $
74,782.60
$
297,210.25 $
294,030.89
$
99,859.62 $
107,274.00
$ 13,558,942.64 $ 13,419,247.73
$ 2,590,751.00 $ 2,466,206.37
$ 1,698,344.00 $ 1,706,891.16
$
15,148.80
$ 9,269,847.64 $ 9,231,001.40
$ 7,741,676.31 $ 8,237,111.32
$ 2,261,038.82 $ 2,928,270.81
$
709,219.87 $
656,428.10
$ 4,771,417.62 $ 4,652,412.41
$ 115,385,893.62 $ 118,985,321.56
14
$ 16,281,840.53
$
158,863.38
$ 15,890,573.81
$
(2,574.00)
$
234,977.34
$ 13,113,879.72
$
974,174.76
$ 5,547,004.14
$
847,582.56
$ 4,456,664.79
$ 1,288,453.47
$ 56,776,536.36
$ 56,712,631.80
$
63,904.56
$ 7,302,811.37
$ 6,914,767.39
$
388,043.98
$ 1,211,718.99
$
369,607.81
$
842,111.18
$ 1,110,623.08
$
661,554.90
$
60,295.17
$
285,699.68
$
103,073.33
$ 14,534,594.29
$ 2,610,645.45
$ 11,739,078.09
$
10,546.50
$
174,324.25
$ 8,152,698.53
$ 2,836,191.30
$ 3,509,914.36
$ 1,806,592.87
$ 118,484,702.87
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
UM General Funds
3 YR AVG
3 YR AVG %
2017 Target 2017 Pool
16,065,495.62
13.66%
13.66%
$ 16,255,400.00
154,128.97
15,694,179.46
(2,574.00)
218,045.19
13,318,767.46
11.32%
11.32%
$ 13,470,800.00
965,842.61
5,554,216.52
837,952.87
4,722,564.09
1,238,191.38
56,504,809.58
48.04%
48.04%
$ 57,167,600.00
56,399,151.05
105,658.53
7,491,294.53
6.37%
6.37%
$
7,580,300.00
56,154.54
7,077,923.23
394,653.11
1,244,251.45
1.06%
1.06%
$
1,261,400.00
366,267.04
877,984.40
1,112,597.11
0.95%
0.95%
$
1,130,500.00
643,532.09
73,349.10
292,313.61
103,402.32
13,837,594.89
11.76%
11.76%
$ 13,994,400.00
2,555,867.61
5,048,104.42
12,847.65
6,225,057.76
8,043,828.72
6.84%
6.84%
$
8,139,600.00
2,675,166.98
1,625,187.44
3,743,474.30
117,618,639.35
100.00%
100.00%
$ 119,000,000.00
Sector budget amounts are established by
combining the programmatic allocations
Provost Allocation Pool
Instruction
Academic Support
Scholarship &
Fellowship
Organized
Research
Institutional
Support
Public Service
Student Services
TUITION
UM
Programmatic
Budgeting Process
PRESIDENT
PROVOST
A&F
M.COLLEGE
H&S
Mathematical
Sciences
ENGLISH
RESEARCH
HEALTH
ECONOMICS
FOCUS
STUDENT
SERVICES
I.COMM
LAW
SOCIOLOGY
Allocation Methods for Each Classification
A Vice President (or delegate) has been assigned responsibility for chairing the
development of an allocation methodology for each classification.
The VP with the largest share of a classification’s expense was appointed as the
chair.
Only the sectors with expense (investment) in a given classification are included
in the development of the allocation methodology.
How it all fits together
• Planning Assessment Continuum Timeline
– November – Planning Committee identifies priorities for the next fiscal
year
– December – University Budget Committee sets program target percent
amounts
– January thru June
• Sector heads run models to identify the unit budget amounts
• Units submit the necessary paperwork to record budgets
– May/June – University Budget Committee reviews budget to be submitted
to OCHE
– Assessment Committee assesses the priorities added to the budget after
an appropriate amount of time