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Budget Model Presentation UBDC 14 February 2017 Where excellence - PowerPoint PPT Presentation

Budget Model Presentation UBDC 14 February 2017 Where excellence and opportunity meet. Outline Guiding Questions for Today Status Checklist A Tale of Three Pictures Revenue Assignment Examples Cost Assignment Examples


  1. Budget Model Presentation UBDC 14 February 2017 Where excellence and opportunity meet.™

  2. Outline  Guiding Questions for Today  Status Checklist  A Tale of Three Pictures…  Revenue Assignment Examples  Cost Assignment Examples  Financial Statements  Key  Examples

  3. Guiding Questions for Today  Does the new model make sense to you?  Rational/Logical/Reasonable?  Transparent?  Is the model workable for UW Oshkosh?  Pros/Cons?  Is the model workable for your area/unit?  Pros/Cons? (individual meetings)

  4. Status Checklist  Governance phalanx:  Task: Oversight committee and bylaws  Status: Drafted  Revenue phalanx  Task: Revenue assignment metrics  Status: Drafted  Cost phalanx  Task: Cost assignment metrics  Status: Drafted  Operating manual  Status: Drafted  Letter of transmittal  Status: In progress

  5. Sources Overview Total Sources Tuition & State Subsidy (102) Auxiliary Charges Extension (104) Cost Federal General Program Recovery One-Year Grants Financial Aid Purpose Revenue Revenue (190) Revenue Differential (GPR) Lawton Grants Tuition (406) Gifts, Grants, Other Minority/Disadvantaged (402) Contracts Segregated GPR Debt Fees Service (110) Property Damage Graduate (999) Financial Aid (403) Utilities (109)

  6. Unit Taxonomy Schematic All Units Usage-Based CUs Revenue Cost Units Units (RUs) (CUs) University Central CUs Self- Academic Supporting RUs (ARUs) RUs (SSRUs)

  7. Model Schematic Total Sources Central Fund Central Revenue University Support Direct Units Central Tax Costs Indirect Costs Usage- Based Strategic Strategic Savings Indirect Savings Initiatives Initiatives Costs Decentralized Side Centralized Side

  8. Revenue GPR-102 Assignment  GPR-102 is assigned to the Academic Revenue Units (Colleges) as follows:  β % share of SCH  (1- β )% share of graduate headcount

  9. Revenue GPR-102 Assignment: Example  50/50 Split of GPR-102 = $100 Million College SCH % Share Graduate % Share GPR-102 Allocation A* 15% 21% $18 million B 12% 22% $17 million C 66% 43% $54.5 million D 7% 14% $10.5 million *e.g., $50(0.15) + $50(0.21) = $18 million

  10. Revenue Program Revenue Assignment  Program Revenue; e.g.,  Segregated Fees  Differential Tuition  Housing  Bookstore Proceeds  Gifts/Grants/Contracts  Assigned to unit where it is generated or for which it is ear-marked

  11. Costs Direct Costs  Examples:  salaries  fringe  travel  supplies & expenses  capital expenditures  Assign to unit where they are incurred

  12. Costs Usage-Based Indirect Costs  (Indirect Costs = Overhead Costs)  Assign to Revenue Units (RUs) based on logical usage-based metrics; e.g.,  Facilities -- Assign cost by ft 2 % share  Human Resources -- Assign cost by FTE % share  Library -- Assign cost by SCH % share  Selected Cost Units (CUs) are assigned only to Academic RUs

  13. Costs University Central Indirect Costs  (Indirect Costs = Overhead Costs)  All cost areas (CUs) that cannot be assigned via usage-based metric; e.g.,  Business Success Center  Chancellor's Office

  14. Costs Simplified Example: Provost’s Office  Assume Budget = $1.5 Million Academic RU SCH % Share Cost Assignment A* 15% $225,ooo B 12% $180,000 C 66% $990,000 D 7% $105,000 *e.g., (0.15)*$1.5 million = $225,000

  15. Costs Simplified Example: HR Assume Budget = $1 Million RU FTE % Share Cost Assignment A* 15% $150,000 B 12% $120,000 C 50% $500,000 D 7% $70,000 E (SSRU) 10% $100,000 F (SSRU) 6% $60,000 *e.g., (0.15)*$1 million = $150,000

  16. Costs Simplified Example: Facilities Assume Budget = $5 Million RU Sq.Ft. % Share Cost Assignment A* 15% $750,000 B 14% $700,000 C 48% $2,400,000 D 7% $350,000 E (SSRU) 12% $600,000 F (SSRU) 4% $200,000 *e.g., (0.15)*$5 million = $750,000

  17. Costs Simplified Example: University Central  e.g., Chancellor’s Office  Assume budget = $900k  Assume tax base = gross GPR-102  Assume GPR-102 = $150 million  Tax = 0.6% on gross GPR-102  i.e., 0.006*($150 million) = $900k

  18. Other Topics  Financial Statements  Standard across all 50 ± units  Publicly available under new model  Budget Request Process:  Timeline – when, who, and to whom  Budget Oversight/Advisory Committee  Mission Quality Indicators (MQIs)  Benchmarking service/funding levels  Service level agreements

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