Transcript Budgeting and Financial Management 101 Overview of the

Budgeting and Financial Management at Case 101
Overview of the Case Budget
Session 1 – October 26, 2006
John Anderson, Provost
Hossein Sadid, Chief Financial and Administrative Officer
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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Guiding Principles for Financial Management
• Responsible risk taking guided by strategic
academic plans and priorities
• Focus on business plans to support spending
• First quartile endowment performance
• Capital investment guided by integrated planning
• Debt supported by credible business plans
• Transparency in all activities and
communications coupled with accountability
• Focus on optimal maintenance of physical
assets
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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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Financial Planning/Budget/Forecast Process (FY07)
R e tu rn to
Level 5
F Y C lo s e
Level 1
Resource Key:
FSBC – Faculty Senate Budget
Committee
UPC – University Planning Committee
UBC – University Budget Committee
M a y -A u g .
R e s o u rc e s
Level 4
Q u a rte rly F o re c a s t
A g a in s t B u d g e t
S e p ./D e c ./M a r.
FSBC
Level 3
N e xt F Y B u d g e t
A n n u a l S u b m is s io n , M a r.-A p r.
UPC
N e w B u d g e t C y c le S ta rts J u ly 1
Level 2
F iv e -Y e a r P la n s
UBC
A n n u a l R e fre s h
D e c .-F e b .
THIS CYCLE ASSUMES THAT
A STRATEGIC PLANNING
PLATFORM EXISTS –
VISION/GOALS/OBJECTIVES
Level 1
R e v ie w A llo c a tio n F o rm u la s &
Im p le m e n t/E n h a n c e R C M
F Y 2 0 0 6 C o m p re h e n s iv e R e v ie w
A n n u a l R e fre s h
F Y 2 0 1 1 C o m p re h e n s iv e R e v ie w
S e p .-D e c .
S c h o o ls
R e s p o n s ib ility C e n te rs
& Res.
UGEN
C e n te rs
U n iv . S e rv .
L ib ra ry
P la n t
N e tw o rk
S tu d e n t S e rv .
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A u x . S e rv .
Refresh Five Year Plans (FY08-FY12)
Certain revenue (i.e. undergrad tuition, endowment payout) and expense (i.e.
indirect cost allocations, fringe rate, partnership fee) assumptions will be provided
to the schools to refresh their five-year plans
The final document produced by The University Planning Steering Committee will
be used as a guide
Input from the University Planning Committee, the University Budget Committee,
and the Faculty Senate Budget Committee will be incorporated into the process
The schools will be asked to update their plans based on an integration of their
priorities with university-wide goals
“In a decentralized university, planning proceeds on two fronts
simultaneously: locally, from a school-specific perspective; and globally
from a university-wide perspective. The sum of the local perspectives does
not always equal the global one! Nor should it. The trick is to keep the
system loosely coupled enough to sustain faculty and decanal
entrepreneurship and survive in a complex world, yet tightly coupled
enough to create a sense of the whole, a sense of bonding commonality, of
one university.” (Edward L. Whalen, Responsibility Center Budgeting,1991)
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Fiscal Year 2007 Revenue Budget
University-wide ($000s)
1%
5%
9%
Total Revenues $815.7 million
4%
30%
0%
Research and Training: 37%
Tuition & Fees: 30%
5%
Endowment Income: 9%
Overhead Recovery: 9%
37%
9%
Auxiliary Services: 5%
Restricted/Unrestricted
Gifts: 5%
Tuition & fees $248,635
Endow ment income $76,052
Research & Training $297,446
Restricted/Unrestricted Gifts $39,533
State Support $3,867
Overhead Recovery $70,173
Organized activities $9,271
Auxiliary services $40,012
Other sources $30,739
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Other Sources: 4%
Organized Activities: 1%
State Support: .5%
Fiscal Year 2007 Revenue Budget
By School ($000s)
15%
Total Revenues
$815.7 million
10%
9%
Medicine: 50%
5%
2%
3%
3%
3%
50%
UGEN: 15%
Arts and Sciences: 10%
Engineering: 9%
Management: 5%
Law: 3%
Dental Medicine: 3%
Arts and Sciences 80,999
Engineering 75,674
Nursing: 3%
Management 39,056
MSASS 18,867
MSASS: 2%
Law 28,438
Dental Medicine 22,504
Nursing 21,264
Medicine 410,239
UGEN 118,687
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Fiscal Year 2007 Revenue Budget
Engineering ($000s)
Total Revenues $75.7 million
11%
4%
34%
3%
Research & Training:
37%
Tuition & Fees: 34%
Endowment Income:
11%
37%
11%
Overhead Recovery:
11%
University Support: 4%
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Tuition & fees $25,450
Endow ment income $8,037
Research & Training $28,640
Restricted/Unrestricted Gifts $2,242
University Support 2,800
Overhead Recovery $8,500
Restricted/Unrestricted
Gifts: 3%
Fiscal Year 2007 Revenue Budget
Law ($000s)
1%
5%
1%
Total Revenues - $28.4
million
1%
15%
Tuition & Fees: 77%
Endowment Income:
15%
Restricted/Unrestricted
Gifts: 5%
77%
Research and Training:
1%
Other Sources: 1%
Tuition & fees $22,247
Endow ment income $4,301
Research & Training $284
Restricted/Unrestricted Gifts $1,308
Overhead Recovery $148
Other sources $150
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Overhead Recovery:
1%
Fiscal Year 2007 Expense Budget
University-Wide ($000s)
Total Expenses - $826.5
million
5%
6%
5%
32%
Salaries and Fringes: 32%
3%
2%
Non-Salary Direct: 29%
2%
Student Aid: 13%
Plant: 6%
3%
University Services: 5%
29%
13%
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Auxiliaries: 5%
Salaries & Fringes $266,263
Student Salaries $24,010
Student Aid $107,224
Non-Salary Direct $243,533
Library $15,597
Student Services $15,698
Info Tech Svcs $21,541
Plant $47,663
University Svcs $45,081
Auxiliaries $40,012
Info Tech Services: 3%
Student Salaries: 3%
Student Services: 2%
Library: 2%
Fiscal Year 2007 Expense Budget
By School ($000s)
15%
Total Expenses $826.5 million
10%
9%
Medicine: 50%
5%
2%
UGEN: 15%
Arts and Sciences: 10%
3%
3%
3%
Engineering: 9%
Management: 5%
Law: 3%
50%
Dental Medicine: 3%
Arts and Sciences 81,211
Engineering 75,674
Management 39,056
MSASS 18,729
Law 28,261
Dental Medicine 22,499
Nursing 21,127
Medicine 415,778
UGEN 124,187
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Nursing: 3%
MSASS: 2%
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
Pre-class assignment - Review Budget on Case’s website
•
Search for “2007 Budget” then click on Budget
Performance Data or
http://www.case.edu/provost/budget/budgetdata.htm
Come to class on November 16th with questions and ready
for discussion
Session III Become familiar with financial drivers: endowments, debt
and working capital
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