Transcript Budgeting and Financial Management 101 Overview of the

Budgeting and Financial Management at Case 101
Overview of the Case Budget
Session 2 – November 16, 2006
John Anderson, Provost
Christine Ash, VP of Planning & Budget
Ginny Leitch, Associate VP of Budget & Financial Planning
Budget and Financial Management at Case 101
Course Objectives
Session I
Understand the alignment between
academic and financial priorities
Understand the budget process on a
university and school level
Session II
Ability to read and understand the
University’s Budget Book
Session III Become familiar with financial drivers:
endowments, debt and working capital
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Office of Planning and Budgets
Reporting Lines
CFAO
Finance and Admin.
Provost
Academic
VP Planning &
Budget
(Split Personality)
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Office of Planning and Budgets Functions
The reorganized Office of University Planning and Budget will
oversee the following major functions (Aug. 2004):
• Financial planning linked to the strategic plan (five-year
plans, budget development)
• Budget management (forecasting, compliance, control)
• Institutional research (benchmarking, internal/external
reporting, trend analysis)
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Budget Reporting Structure
For planning and budget purposes,
the Schools, through their Deans,
report to the Provost.
Central Offices report to the
President, the Provost, or the CFAO.
All of the above have a fiduciary responsibility, and
serve as financial stewards of the University.
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Budget/Management Systems
Current System:
• Decentralized
• Every Tub on its Own Bottom (ETOB)
Proposed System:
• Decentralized
• Responsibility Center Management (RCM)
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Financial Planning/Budget/Forecast Process (FY07)
Return to
Level 5
FY Close
Level 1
Resource Key:
FSBC – Faculty Senate Budget
Committee
UPC – University Planning Committee
UBC – University Budget Committee
May-Aug.
Resources
Level 4
Quarterly Forecast
Against Budget
FSBC
Sep./Dec./Mar.
Level 3
Next FY Budget
Annual Submission, Mar.-Apr.
UPC
New Budget Cycle Starts July 1
Level 2
Five-Year Plans
UBC
Annual Refresh
Dec.-Feb.
THIS CYCLE ASSUMES THAT
A STRATEGIC PLANNING
PLATFORM EXISTS –
VISION/GOALS/OBJECTIVES
Level 1
Review Allocation Formulas &
Implement/Enhance RCM
Sep.-Dec.
Schools
& Res.
Centers
UGEN
Univ. Serv.
Library
Plant
Network
Student Serv.
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Annual Refresh
FY2011 Comprehensive Review
Responsibility Centers
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FY2006 Comprehensive Review
Aux. Serv.
Timeline
Fall
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Update Guidelines
(Tuition Rates, Endowment Payout Rate, etc.)
Winter
Prepare five-year plans
Spring
Prepare the next year’s budget
June
Budget approved by the Board of Trustees
Budget Categories
Income
Tuition – academic year/summer, undergrad/grad/professional
Endowment – restricted/unrestricted
Gifts – restricted/unrestricted
Research & Training
Overhead
State
Other
Auxiliaries – food services/housing
Direct Expense
Restricted – salary/non-salary (must equal the total of restricted
endowment/restricted gifts/research & training)
Unrestricted – salary/non-salary
Indirect Expense
University Services – examples, President’s Office/Budget Office
Student Services – examples, Undergraduate Studies Office/Admissions
Plant – utilities/other
ITS
Library
Auxiliaries – see above
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Example of Allocation Rule
Undergraduate Academic Year Tuition
Every Tub on its Own Bottom (ETOB)
• 15% net tuition allocated on share of UG degrees
• 85% net tuition allocated on share of UG CHRS
Responsibility Center Management (RCM)
• Same as above, but rather than using current year data, will
use a 2 year moving average
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Questions and Answers
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