Budget Update Resetting the Base November 2019
Background Current/Historical Budget Practices at ISU • Focus on state appropriation • Varied structures for budgeting and expending local funds Need for: • Standardized planning, reporting and analysis tools o Connection between budget and financial statements o Holistic university lens o Common methodology for resource allocation o
Where We’ve Been ISU All Funds Budget Appropriated Research Local Resources State general allocation Personnel Expense Other Operating Expenses Net Financial ??? Impact
Proposed Path Forward ISU Financial View Appropriated Research Local Resources Grants & Tuition, Fees, State general sponsored Sales & allocation projects Services Personnel Expense Other Operating Expenses Financial $ $ $ Goal
How We Get There Budget Development Process • Principle-Driven Agile & Iterative • Collaborative •
Principles & Objectives Transparency in budget development and • administration • Identification and understanding of revenue streams Maximization of University resources • • Budgeting and decision-making informed by strategic plans and priorities Structures that support empowerment, mutual • accountability, responsiveness, and adaptation at the local level
Budget Status Report: University Level
Base Expenditure Budgets Appropriated Local Total Budget Actual Actual Actual Budget Budget Budget Expense Expense Expense Personnel $ 6 M $ 4 M $ 2 M $ 2 M $ 8 M $ 6 M Operating $ 1 M $ 3 M $ 1 M $ 1 M $ 2 M $ 4 M Total $ 7 M $ 7 M $ 3 M $ 3 M $10 M $ 10 M Reset Reset Base Base Budget Budget
Work to Date February FY2020 budget presentations and proposals March FY2020 tuition rates and projected revenue Expenditure Budget Development: April UBO budget exercise Collect three years of unit expenditure data May-Oct Reconcile current budgeted positions to payroll Identify budgeted vacant lines Process departmental reorganizations Index mapping UBO, Dean, and budget meetings Chargeback analysis Review and edit budget drafts Oct Reset expenditure budgets distributed to units
Budget Development Process • Principle-Driven Agile & Iterative • Collaborative •
Next Steps Developing ISU’s Budget Model Methodology • resource allocation • revenue distribution potential distribution formula o model for enrollment growth o • cost allocation Policy and Procedure carryforward • fund balance • • strategic investment Reporting and Analysis Tools
Questions? Thoughts? Concerns?
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