F&A Meeting
Sep 30, 2014
Office of Budget and Financial Planning
Increasing Fiscal Strength
Revenue diversity
Financial management
Enrollment
Student fees
State support
Grants (federal, state)
Other (private, ESS, auxiliaries)
Expenditure control
Reporting
Analysis
Multi-year planning
Asset base
Financial flexibility
Physical infrastructure
IT infrastructure
Deferred maintenance
Reserves (net assets)
Debt
Endowment (investments)
FY15 Update
• Completed one-on-one VC meetings
• Total proposals = $12.5 million
• Multi-year forecast, capital plan to System Office (Oct 10)
• FY15 recommendation to Chancellor (Oct 17)
• Summit Position Management
• Lessons learned from FY14
• Planning for FY16 -19
Models of Allocating Resources
• Incremental (annual increments)
64%
• Formula funded (inputs)
12%
• Performance funded (outputs)
4%
• Incentive-based
(revenue and cost allocation)
20%
Salary Budgeting
• By employee
85%
• Pooled expense
15%
Responsibility Centered Management
• RCM is a popular response to
–
–
–
–
lower state funding
reduced capacity to increase student fees
continued pressure to realize greater efficiencies
leaders and managers desire for greater autonomy
• RCM is often cited as best practice
– Cornell, Georgetown, Columbia, University
of Virginia, University of New Hampshire, Rutgers
Advantages
• Reward for revenue generation and cost effectiveness
• Greater transparency on sources and uses of resources
• Greater flexibility (responsiveness to change)
• More ability to plan and affect future resources
• Alignment of authority and accountability
Challenges
• Change is difficult
• Trust, collaboration and a common sense of purpose
• Implementation requires ongoing conversations between
academic and administrative departments
– to manage changes, take advantage of opportunities,
and ensure commitment to core mission and values
FY14 Expense
FY15 Budget Authorization
FY15 Budget Proposals
FY14 Lessons Learned
• Timing of new buildings introduce variability
• Capacity to execute, capacity to spend
• Need alternative reporting; myths remain
• Acknowledge variability (and opportunity); we
need greater flexibility
FY14 Unspent Budget Authorization
Increasing Fiscal Strength
• Cost – benefit on where we spend our time
• Address structural revenue or expense deficit
• Acknowledge variability (and opportunity)