Standard 3: Institutional Resources
Appendix 3-C: Analytical Narrative that (1) provides information on the financial plan’s
underlying assumptions, (2) provides evidence of the viability of those assumptions, (3)
reconciles the financial plan to the institution’s strategic, operating, and other plans, and
(4) assesses the institution’s financial capacity and risk factors.
UMCES, as one of 12 institutions within the University System of Maryland, represents less
that 2% of the total USM budget. UMCES operating revenues are primarily from extramural
contacts and grants (55-58%) and state of Maryland appropriations (41-45%).
Administratively, UMCES is a relatively flat organization with a somewhat unique
cooperative and collaborative relationship with other institutions within USM, particularly
with UMCP. UMCES utilizes and has various levels of support from UMCP for basic financial
system, payroll, time keeping and human resources information processing and information
systems, bursar’s office, on-line travel system, travel and procurement cards, procurement
and accounts payable, and inventory. We have MOU’s in place with UMCP for our IRB, with
UMBC for technology transfer and, at for IMET, an MOU in place with UMB for both IACUC
and EHS at that particular site. Not only does this allow UMCES to operate with the most
current and sophisticated level of technology support without replicating the cost, but also
minimizes the administrative structure within UMCES and improves our compliance
strength, including level of access to expertise and separation of duties. In others sections of
this ARR, the MOU and Agreement in place with UMCP in regard to the Graduate School and
MEES program support is addressed.
Within UMCES, our laboratory sites located across Maryland, manage not only their local
business operations but also facilities including any lease payments. The allocations to each
lab provides for both the state operating funds for facilities but also the return of Facilities
and Administration (overhead) revenues to the labs. Center Administration with UMCES
manages with oversight in all areas, but some matters, such as facilities are managed at a
greater level locally than would be in a more traditional institutional structure with colleges
and departments on one physical campus.
Allocation of cuts or enhancements as well as support for strategic or new endeavors are
vetted and discussed at the President’s Council meetings. These meet monthly, but are also
be called meet if need on special matters. Attached are several agendas of these meetings
that support the on-going transparency and shared governance in this matter.
The Office of Internal Audit conducts financial, operational, compliance, investigative,
information systems, and follow-up reviews of the USM's 12 constituent institutions to
ensure they are operating effectively, efficiently, and in accordance with applicable policies,
standards, regulations, and laws. The office provides services to the Regents, the Chancellor
and management to assist them in meeting their legal, fiduciary, and management
responsibilities. Attached are the audit reports from calendar year 2012 and the audit plan
for engagement in calendar year 2013. In addition to the independent OMB A-133 outside
auditors, there are period audits conducted by the State of Maryland Office of Legislative
Audits. UMCES audit reports are posted at:
http://www.ola.state.md.us/top_pgs/Publications/pubs_AGENCY_USMUMCES.html