Comprehensive Financial
Management Structure
Strategic Integration Target 2
Board of Trustees Strategic Outcomes
July 2014
Trustees Strategic Outcomes
Strategic Integration Target 2
 “Develop and implement a comprehensive financial
management structure for the entire System that
enhances transparency, enables appropriate fiscal
control, and advances comprehensive intra-system
collaboration.
• New model review September 2014;
• Implementation in FY15.”
 This presentation explores the existing governance for
financial affairs and the options available for
implementing Strategic Integration Target 2. Each
option has multiple variations.
Governance of
Financial Affairs
 Charter of the University of Maine System
 Private & Special Laws 1985, chapter 532
 Maine law
 Title 20-A MRSA, chapter 411
 Board Policy
 Bylaws of the Board of Trustees – Section 103
 Governance & Legal Affairs – Section 207
 Financial Affairs – Section 700
Spectrum of Change
1: Policy
Only
Approach
2: Unified
Finance
Only
3: Unified
Finance &
Administration
with Regional COOs
4: Unified
Finance &
Administration
– Full Integration
Policy Only Approach
 Current law & policy define role of VCFA/Treasurer
 Develop unified operating and capital budgets
 Oversight of financial resources and assets
 Authority to draw funds and commit resources
 Create dotted lines from campus CFOs to VCFA
 Strengthen internal controls
 Develop policy to govern movement of funds
 Note: This strengthened policy approach applies to all options.
Unified Finance Only
Vice Chancellor
Finance &
Administration
CIO
CHRO
CFO
Budget &
Financial
Analysis
Bursar & Student
Financial
Systems
System Director
of Facilities &
General Services
Controller
General Counsel
Clerk of the
Board
Unified Finance Only
 Create a System CFO with primary responsibility for
financial oversight and unified budget development for
all seven universities.
 Consolidate functions related to:
 budget & financial analysis
 bursar & student financial systems*
 Create dotted lines from campus CFOs to System CFO
*Note: Controller function already consolidated.
Unified Finance & Admin with
Regional COOs
Vice Chancellor
Finance &
Administration
CIO
Budget &
Financial
Analysis
CHRO
Controller
CFO &
Associate Vice
Chancellor
Regional COO
System Director
of Facilities &
General
Services
Regional COO
General
Counsel
Regional COO
Clerk of the
Board
Regional COO
Unified Finance & Admin with
Regional COOs
 Create a System CFO/Associate Vice Chancellor
 primary responsibility for financial oversight and unified
budget development for all seven universities
 Secondary responsibility for coordination of administrative
services for all seven universities.
 Consolidate functions related to budget & financial
analysis.*
 Replace 7 campus CFOs with 3 to 4 regional chief
operating officers reporting to the System CFO/AVC
with responsibility for one or more campuses.
*Note: Controller function already consolidated
Unified Finance & Admin
Full Integration
Vice Chancellor
Chief Operating
Officer
Chief Information
Officer
Facilities & Capital
Management
Chief Facilities &
General Services
Officer
Facilities
Maintenance &
Operations
Chief Human
Resources Officer
Risk Management
General Counsel
Procurement
Services
Clerk of the Board
Budget &
Financial Analysis
Chief Financial
Officer
Bursar & Student
Financial Systems
Auxiliary Services
Controller
Unified Finance & Admin
Full Integration
 Achieve full financial and administrative integration serving both
Strategic Integration Target 2 (comprehensive financial
management structure) & Target 3 (comprehensive administrative
plan/reduced administrative cost)
 Vice Chancellor position renamed COO
 Create a System CFO with primary responsibility for financial
oversight and unified budget development for all seven
universities.
 Consolidate functions related to:
 budget & financial analysis
 bursar & student financial systems
 auxiliary services*
*Note: Controller function already consolidated
Unified Finance & Admin
Full Integration
 Consolidate all administrative services by function and
locate all services on a campus to make best use of
space*
 All facilities maintenance & operations and capital
management functions under the Chief Facilities &
General Services Officer
 All human resources functions under the Chief Human
Resources Officer
 All other administrative services in Information
Technology, Facilities & General Services, and Human
Resources have already been consolidated.
*Note – eliminate System Office at 16 Central Street, Bangor
Process
 Continued discussion - campus Presidents & CFOs
 Presentation of plan at BOT Meeting Sep 21-22
 Plan available for comment on Sep 22 on
ThinkMissionExcellence.Maine.edu
 Comment period ends Oct 10
 Final plan presented at BOT Meeting Nov 16-17