Meeting of the
Finance Committee
September 14, 2012
1
New Internal Financial Model
Objectives
• Provide tools that will allow the University to operate more
efficiently in a future constrained by limited resources.
• Emphasize transparent decision-making, incentive-based
allocations and prudent stewardship of University resources.
• Empower the individual academic units to be innovative and cost
efficient.
• Build incentives into the system to encourage entrepreneurism
among our deans, administrative leaders, faculty and staff.
• Enable us to align our resources more precisely with our core
mission areas of education, research, patient care and service.
2
New Internal Financial Model
Accomplishments
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President’s statement of purpose
Researched peer financial models
Conducted financial reporting needs analysis
Reconciled common data set for modeling
Began revision of budget process to transition to new model
Supported change preparedness assessment – academic & service
Charged Steering Committee Task Forces:
1.
2.
3.
4.
5.
Financial reporting, system preparedness, and training
Communications and change management
Revenue and incentives
Cost and service level architecture
Decision-making, governance and policy making
3
New Internal Financial Model
Timeline
The University will transition to the new financial model in conjunction with budget development cycles
Here
Launched May 18, 2011
By President Sullivan
Design
Phase 1
Implement
Phase 1
Monitor Phase 1
Design Phase 2
May 2011-July 2012
Aug. 2012 – Dec. 2012
Jan. 2013 – June 2013
July 2013 – Dec. 2013
Stage 1
Stage 2
Conceptual
Study
Stage 3
Stage 4
Implement
Phase 2
Jan. 2014 – June 2014
Stage 5
Budget Development Cycle
FY2013-14 Budget Development Cycle
FY2014-15 Budget Development Cycle
4