Transcript Allerton Presentation for New Administrators

Budgeting
&
Finance
Senior Leadership Retreat
August 18, 2008
$
University Structure
Board of Trustees
University
Administration
UI at
Springfield
Planning & Budgeting
OBFS:
Budget Office
Purchasing
Grants & Contracts
Accounting
AITS
Human Resources Policy
University Audits
UI at
Urbana-Champaign
UI at
Chicago
•CITES
•Management Information
•Human Resources
•Facilities and Services
•Office of Sponsored Programs & Research Administration
University Structure
Board of Trustees
President
Vice Presidents
Assistant Vice
Presidents
University
Administration
University Policy Council
President
Chancellors
Vice Presidents
AAMT Academic Affairs
Vice Presidents
Provosts
Vice Chancellors
Centralized Business Services
Chancellors
Provosts
Vice Chancellors
UI at
Springfield
UI at
Urbana-Champaign
UI at
Chicago
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Duties of an Administrator
• To develop the academic unit strategically
within the scope of mission and within
resources accessible to the unit;
• To provide accountability at the campus
level concerning the unit’s fidelity to
mission and values; and
• To present the case (be an advocate) at the
college/campus level concerning the
unit’s relationship to strategic concerns of
the campus.
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Duties of an Administrator
• To assure that the academic unit has an
effective process for planning and
budgeting;
• To manage the academic unit’s resources
as required to adapt to changing
opportunities and needs;
• To assure that units, programs, and other
subsidiary organizations are accountable
on appropriate grounds.
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Duties of an Administrator
• To be appropriately entrepreneurial—
look to gifts, self-supporting activities,
and partnerships with other units;
• To work with the resources available to
your unit (no deficits!);
• To be responsive to the needs of the
institution as a whole.
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Managing Unit Finances
• Develop a summary plan for the year that
involves all funds
• Each month someone needs to reconcile
your account statements. Sit down
quarterly to review status
• Know who owes you money; don’t forget
to collect
• Have at least two people review
transactions
• Have your staff attend training
Budgets are About Making Choices
$
The Budget Process
• Spring – Campus/U of I requests developed
•July – BOT reviews preliminary budget request
•September – BOT approves U of I budget request
•Oct/Dec – IBHE/University interaction
•December/Jan– IBHE recommendations submitted to the Gov.
•February – Governor’s budget recommendations submitted to
Legislature
•May/June – Legislature acts
•June/July – Governor signs appropriation
- Budget allocation to units
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Campus Budget
$
FY08 UIUC Budget
State Appropriations
Tuition (Income fund)
Institutional Funds
Grants, Contracts, & Fed Appropriations
Gifts & Endowment Income
Departmental Activities
Auxiliary Enterprises
Total
(000s)
$258,758
367,263
113,802
320,759
122,463
109,372
178,804
$1,471,221
$
FY08
UIUC Budget
Auxiliary Enterprises
12%
State Appropriations
18%
Departmental
Activities
7%
Gifts & Endowment
Income
8%
Grants, Contracts &
Federal
Appropriations
22%
Tuition (Income
Fund)
25%
Institutional Funds
8%
FY97
UIUC Budget
Auxiliary Enterprises
14%
State Appropriations
29%
Departmental
Activities
5%
Gifts & Endowment
Income
6%
Grants, Contracts &
Federal
Appropriations
23%
Tuition (Income
Fund)
14%
Institutional Funds
9%
$
Budget Process
&
Distribution of Funds
$
The Budget Process
• Spring – Campus/U of I requests developed
•July – BOT reviews preliminary budget request
•September – BOT approves U of I budget request
•Oct/Dec – IBHE/University interaction
•December/Jan– IBHE recommendations submitted to the Gov.
•February – Governor’s budget recommendations submitted to
Legislature
•May/June – Legislature acts
•June/July – Governor signs appropriation
- Budget allocation to units
$
Budget Process
Provost’s Annual Planning
Guidelines
Administrative
Unit
Academic
Unit
Plans
Provost
Office &
CBOC
Council of
Deans
Academic
Senate
Review Plans
Provost
Provost
Budget Meetings
Plans
DBC
Review
Plans
$
New Budget Model
New tuition allocation procedures that will:
•Provide incentives for non-major instruction and interdisciplinary
programs
•Provide clarity and predictability for allocations
•Continue incentives provided for graduate, professional and selfsupporting tuition while increasing clarity of those allocations.
•Develop procedure to allocate funds based on total GRF & tuition
rather than just incremental funds.
•Develop procedures for providing guidance for non-tuition
allocations to units.
Proposed Changes to Budget
Model
Current
• $60 per UG IU
Proposed
• $110 per lower div. IU/ $170
per upper div.
• Allocations based on share
of total
• Special units (KCPA, WILL. . )
hidden in total
• Fixed $ per IU and major
• Uses multi-year averages
• Actual earnings, where
possible
• Some overhead costs (utilities
& space, to start) based on use
• New overhead costs split on
colleges share of total
• Special units receive separate
review
Challenges with Current ICR Allocation
Procedures
• Two primary streams of ICR revenue to a unit:
– 30% of current year’s earnings (generally 25%
department/5% college)
– 52% of growth over prior year
• Tuition remission and F&A are combined—institutes
receive remission even though they teach no students
• Growth in revenue is not shared with “overheads” ICR
is intended to support
• ICR spread between institutes and departments in ways
that create tension
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Distribution Of All Other Revenues
Departmental activities
Gift & Endowment
income
Auxiliary
enterprise
Grants,
Contracts, &
Federal
Appropriations
100% to
College
Resources
• Accounting Customer Service—Ron Miner, Assoc.
Director. 265-5315
• Budgets and Financial Analysis—Pat Hoey, Director.
244-0542
• University Audits—Darla Hill, Director. 265-5400