Transcript BCM HOS workshop presentation

UQ’s Budget Contribution Model
An Overview
VC Forum
Head of Schools Workshop
September 14, 2012
Introduction
• What is the BCM?
• BCM ~ Centre to Faculty
• Structure of the BCM
• BCM Drivers
• University Funding Model – BCM Distribution
•
BCM ~ Income
• BCM ~ Central Overheads
• BCM ~ Infrastructure Support Costs
UQ’s Budget Contribution Model
What is the BCM?
• Mechanism for distribution of income and allocation of
costs
• Not all income
• Not all costs
• A common misconception is that the BCM is the budget
• The BCM is an input into the budget process
UQ’s Budget Contribution Model
What is the BCM?
The BCM is used to:
•
Distribute CGS Block Grant income to Faculties and Institutes
•
Distribute CGS Research (Secondary Gains) to Faculties and
Institutes
•
Allocate Central Overhead against Faculties and Institutes
UQ’s Budget Contribution Model
What is the BCM?
The following income is not included in the BCM:
•
•
•
•
Research Income
Trading income
Investment income
Donations, Scholarships and Bequests
The following expenditure is not included in the BCM:
• Direct costs at Faculty and Institute
• Capital Expenditure from tied income sources
UQ’s Budget Contribution Model
BCM ~ Centre to Faculty
• The BCM is a conduit between the Centre and the Faculties and Institutes
• The Faculty may in turn distribute income in accordance with its own
mechanism
• The Faculty may allocate costs in accordance with its own mechanism
• Portion of Central Overhead as levied upon it
• Allocation of Faculty Overhead
• Running the Faculty Office
• Faculty Initiatives (Strategic)
UQ’s Budget Contribution Model
Structure of the BCM
• Income
• CGS Block Grant
• Secondary Gains on Research (Research Block Grant)
• Tuition Fees
• Deductions
• Central Costs
• Infrastructure Support Costs (Repairs and Maintenance, Insurance)
• Strategic Initiatives
• Debt Servicing
• Capital
UQ’s Budget Contribution Model
BCM Drivers
•
Income distributed and costs (deductions) allocated to Faculties and
Institutes on the basis of selected drivers
•
The cost or deduction driver is not activity based costing.
•
Has been determined as a reasonable proxy for resource usage
•
The drivers are influenced by UQ’s strategic objectives.
•
For example, Research EFTSL and Research secondary gains are not included in overhead
calculations
UQ’s Budget Contribution Model
BCM Drivers ~ Income
Item
Driver
CGS Block Grant
Weighted Funded EFTSL
Medical Loading
Faculty of Health Science
Regional Loading
Faculty of Science
Student Contribution Charge
Weighted Funded EFTSL
Enhanced Student Contribution Charge
40 % WFETSL, 30 % EFTSL, 30 % SECat
T&L Performance / HEPP / ISP
External Strategic Funding distributed directly by
office of DVC A and SDVC
JRE / RTS
40 % RHD EFTSL, 10 % RHD Completions, 40 % Research
Income, 10 % Weighted Publications (ERA)
APA Scholarships
External Strategic Funding distributed directly by
office of DVC R
RIBG
External Strategic Funding distributed directly by
office of DVC R
SRE
Fellowships/Research Infrastructure support ex DVC R $4.8m
Balance ~ Category 1 Income Weighted by ERA Index, 1/2
Institute Support, 1/2
Tuition Fees
Direct to Faculties / Institute
UQ’s Budget Contribution Model
BCM Drivers ~ Costs
• Drivers Include:
•
•
•
•
•
•
•
•
Funded EFTSL
Weighted Funded EFTSL
International EFTSL
Non Research EFTSL
Staff FTE
Space
Total Income (BCM)
iCEVAL
• Examples:
• Library
• 50 % Staff FTE
• 50 % Non Research EFTSL
• DVC I
• 100 % International EFTSL
UQ’s Budget Contribution Model
BCM Drivers ~ Costs
Item
Drivers
Office of:
Vice Chancellor
Total Income, Non Research EFTSL, Staff FTE,
International EFTSL
Senior Deputy Vice Chancellor
Total Income, Non Research EFTSL, Staff FTE
DVC (Academic)
Non Research EFTSL, Total Income, Funded
EFTSL
DVC (Research)
Total Income, Non Research EFTSL, Staff FTE,
International EFTSL
DVC (International)
International EFTSL
DVC (External Relations)
Total Income
EDO
Non Research EFTSL, Staff FTE, Space,
International EFTSL, Total Income
Strategic Initiatives
Total Income, Funded EFTSL, Weighted Funded
EFTSL, iCEVAL
Infrastructure Support
Non Research EFTSL, Staff FTE, Space,
International EFTSL, Total Income
Capital & Debt Servicing
Non Research EFTSL, Space
UQ’s Budget Contribution Model
BCM Drivers ~ Data Sets
Category
Calculation/Data Source
CGS Load
Forecast data – Planning Office * Funding Index
Tuition Fees - $ and EFTSL
Tuition Fee Model
JRE/RTS (4 indexes below)
Research Income
HERDC – Average of preceding two years
Publications
Average of preceding two years
Awards
Average of preceding two years, PhD weighted by 2
RHD Load
Immediate prior year actual load
Non Research EFTSL
Addition of the above EFTSL streams (non research only)
Space
Faculty and Institute space – latest per Reportal
FTE
Census data at 31/3/2012
Total Income
Total income per BCM less Research Block Grant less
Enhanced Contribution Charge less Strategic Contribution
UQ’s Budget Contribution Model
University Funding Model ~ BCM Distribution
Distributed through the BCM 2012
Total Effective Distribution to
Faculties and Institutes $ 534 m
61 % of BCM Income
> Faculties and Institutes $ 407 m
* CGS Block Grant $ 448 m
> Central Costs (1)$ 272 m
* Research Block Grant $ 146 m
BCM
$882 m
* Tuition Fees $ 288 m
> Strategic Funding
>Strategic Funding
(2) $
(3) $
58 m
> Debt Servicing $ 15 m
> Capital $ 47 m
Note (1) ~ Much of these incurred on behalf of total UQ
Note (2) ~ Discretionary Strategic Funding
Note (3) ~ Direct Flow through for RIBG, SRE, APA Scholarships, HEPP
Note (4) ~ In excess of 90 % of Strategic Funding flows back to Faculties and Institutes
UQ’s Budget Contribution Model
83 m
$ 127 m
(4)
Direct Revenue Distributions (2012)
CGS Block Grant
• C’wealth Contribution $269m
• Student Contribution $167m
Tuition Fees
• International
• Domestic
Research Block Grants
• JRE
• RTS
• SRE
UQ’s Budget Contribution Model
$258m
$ 30m
Domestic
Load
Modelling
Tuition Fee
Modelling
FFI
Faculties
And
Institutes
$ 30m
$ 56m
$ 11m
Research
Performance
Research Block Grants
Research Income
RHD Load
RHD Awards
Publications
40%
40%
10%
10%
JRE
RTS
$ 30m
$ 56m
SRE
$ 11m
Category 1 Income
moderated by ERA
SRE
$ 5m
Fellowships/Infrastructure
APA
$ 20m
Direct to Scholars
RIBG $ 24m
via DVCR
Load Models
One Commonwealth-supported domestic model
Four international tuition fee models
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•
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Undergraduate
Postgraduate Coursework
Postgraduate Research
Non-award
Three domestic tuition fee models
• Undergraduate
• Postgraduate Coursework
• Postgraduate Research
Load Models
TOTAL EFSTL 2012
Actual by program
CONTINUING EFTSL
2013
COMMMENCING
2013
Model
Faculty Estimate
TOTAL EFTSL 2013
Legend
Known Value
SCHOOL/SUBJECT AREA EFTSL
SPLITS 2013
Based on Historical Patterns
Modelling Process
Faculty / Institute Input
FUNDING BAND/COURSE FEE
RATES 2013
Actual
REVENUE
By program, faculty etc
Load Models
CONTINUING EFTSL
2013
Model
Granularity:
Program and Program Year
Retention:
Semester on Semester
Based on 3 year history
Distribution:
1 year history (annualised)
Schools
Tuition Fee Band or CGS/SCC Band
Load Models
COMMMENCING
2013
Faculty Estimate
Granularity:
Semester
Program (International)
Program and Program Year (Dom)
Faculty Funding Index
BCM:
• International tuition fees passed through ‘as earned
• Domestic load weighted by Faculty Funding Index
FFI
Faculty Funding Index:
• A multiplier that is applied to Faculties’ student load
(EFTSL) to calculate the weighted student load
(WEFTSL)
• Representative of Commonwealth Funding Bands
• Moderated for scale
Faculty Funding Index
Commonwealth Funding Clusters
2011 Data
Faculty Funding Index
Commonwealth Funding Clusters
2011 Data
Faculty Funding Index
Commonwealth Funding Clusters
Arts
0.78
BEL
0.59
EAIT
1.24
Health
1.19
Science
1.30
SBS
0.84
2012: Variance “Theoretical” FFI to Actual FFI <.019
Questions?