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Transcript of Frank Goldberg, PhD Vice Provost for Resource Planning & Management Heather J. Haberaecker, PhD...
Frank Goldberg, PhDVice Provost for Resource Planning & Management
Heather J. Haberaecker, PhDExecutive Assistant Vice President for Business &
Finance
BUDGET DEVELOPMENT AND MANAGEMENT
Tuition
GRF
Research
GRF
ICRGRF
Health Care
Innovation
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FY 2013
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Budget Decision Principles:
•Ensure fiscal integrity – decentralized responsibility and decentralized accountability
•Ensure good decision making – assign decision making authority to appropriate entity
•Maximize use of resources – include financial, physical and human resources
•Balance priorities – balance support for instructional, research, patient care, economic development and service missions of the Campus
•Maintain quality – reduce and redirect budgets in a manner that best preserves quality
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Funds flow diagram: ICR
2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE
DIRECT RESEARCH
EXPENDITURES
$1.00DIRECTCOSTS
COLLEGE 47.5%
COLLEGERESEARCH
GOALSCOSTS
VCR7.7%
CAMPUSRESEARCH
GOALS
GRANT AWARD
OTHER32.3%
CAMPUSRESEARCH
COSTS
INDIRECT COSTS PROJECTS12.5%
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FY 2005 ICR Formulaic Allocations & Commitments(Shown as a percentage of the College’s total F&A earnings)
A&A CAHS CBA DENT EDUC ENG JACSW LAS MED NURS PHARM SPH CUPPA$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Formulaic @ 36.5% Campus Commitments
36.5%36.5%
53.9%
65.9%
55.8%
36.8%
55.6%
55.4%
116.2%
57.4%
70.8%
N/A
46.0%
$ in Millions
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Changes in ICR AllocationsFY 2005 – FY 2013
How the Funds FlowICR
FY 2013
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Colleges
VCR
VCAS
All Other Units
UA
Special Projects
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UIC Budget Model
Budget Units
Tuition Distribution
Salary Program (Admin)
Strategic Initiatives
Hold Harmless
Space Economy
Space Costs
UICBudget Model
GRFTuition
Revenue Reallocation
State Budget ReductionsUA Central Costs
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Funds flow diagram: Tuition
2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE
UNDER-GRADUATE
TUITIONDIFFERENTIAL
TUITION
75% TO COLLEGES
25% TO PROVOST
25% TO PROVOST
75% TO COLLEGE
GRADUATE TUITION
DIFFERENTIAL TUITION
75% TO COLLEGESBy Headcount
25% TO PROVOST
85% TO COLLEGE15% TO PROVOST
PROFESSIONALTUITION
85% TO COLLEGESBy Headcount
15% TO PROVOST
60% BY CREDITS
15% BY HEADCOUNT
15% TO PROVOST10% TO FIN AID
15% TO PROVOST10% TO FIN AID
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Comparison of State Appropriations and Tuition Revenue
CBA LAS
A&A
JACSW
PHARMED
UCEN
GNURS
DENT
CAHSMED
CUPPASP
H0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Tuition GRF
FY 2007 FY 2013
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CBA LAS
A&A
JACSW
PHARMED
UCEN
GNURS
DENT
CAHSMED
CUPPASP
H0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
How Tuition is Distributed
Colleges All Other Units$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
Income Fund GRF
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Other centrally-budgeted costs $30.9MOther centrally-budgeted costs $78.2MUtilities $24.7M
Utilities $46.4M
Academic Support & Admin Units
$185.4M
Academic Support & Admin Units
$175.5M
Colleges (incl Grad & Honors)
$257.4M
Colleges (incl Grad, Honors, &
SCS)$339.4M
Financial Aid $31.5M
University of Illinois at ChicagoUnrestricted Funds - by Use
FY 2002 FY 2013
$498.4M $671.0M
+ 29.4%
- 5.3%
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Other centrally-budgeted costs $30.9MOther centrally-budgeted costs $54.9M
Utilities $24.7MUtilities $32.6M
Academic Support & Admin Units
$185.4M
Academic Support & Admin Units
$123.2M
Colleges (incl Grad & Honors)
$257.4M
Colleges (incl Grad, Honors, &
SCS) $238.3M
Financial Aid $22.1M
University of Illinois at ChicagoUnrestricted Funds - by Use
(HEPI inflation adjusted)FY 2002 FY 2013
$498.4M $471.4M
- 33.5%
- 7.4%
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ACCOUNTING FOR YOUR FUNDS
• What is a C-FOAP? – It is a 25 digit number used to identify transactions for
your department (similar to how one would use a bank account number).
– We are going to focus on the 3 most important – the C – F - O– C – Chart is a one digit code for a campus (Chicago = 2)
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CHARTC
FUNDF
ORGANIZATIONO
ACCOUNTA
PROGRAMP
1 digit # 6 digit # 3 or 6 digit # 6 digit # 6 digit #
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• A Fund provides a cumulative record of the sources and uses of monies.
• Examples of Funds (types are designated by the first digit of the 6-digit fund number):
1 = State2 = ICR and other types of unrestricted funds3 = Self-supporting activities4 = Grants (federal)5 = Grants (state, local and private)6 = Gifts, endowments, service plans (medical, nursing, dental)
• Your organization code is 6 digits of which the first 3 digits are your department code– Your department code is the most frequently used
number
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ACCOUNTING FOR YOUR FUNDS (cont..)
DISTRIBUTION OF INDIRECT COST RECOVERY (ICR)
• Indirect Cost Recovery (ICR) Revenue (also referred to as Facilities & Administrative (F&A) Revenue) refers to funds generated from the recovery of general infrastructure and other costs that cannot be directly charged when performing extramurally funded research.
• Typical Standard ICR Distribution
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Colleges 47.5%*Campus 44.8%VC for Research 7.7%Total 100.0%
• 30% of the 47.5% is governed by the Sponsored Programs Proposal Approval Form (PAF) with a standard 10% college and 20% department split. The 30% may be shared with other departments and colleges based on the contributions of multiple researchers. The other 17.5% is distributed to the college administering the grant.
UIC DEFICIT REDUCTION POLICY
• Deficits are a serious drain on the campus’ financial flexibility and should be avoided.
• A usage charge is assessed on all non-state funds (excluding grants and contracts) with a deficit of $10,000 or greater
• Financial reports are sent to Deans and College Academic Fiscal Officers (AFO’s) at the end of 2nd and 3rd quarters and the month of May to allow departments to review and initiate actions to address any potential reportable deficits
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UIC DEFICIT REDUCTION POLICY (cont.)
If a deficit remains at the end of fiscal year you will need to submit a deficit reduction plan as follows:
1. $10,000 - $149,999 – Completion of a simple form outlining the cause and planned resolution of the deficit
2. $150,000 - $499,999 - Completion of a three year action plan for resolution of the deficit
3. $500,000 and above - Completion of a five year plan and a meeting to discuss the proposed plan
All plans will be reviewed and ultimately approved/disapproved by the Provost. If the plan is not approved, the unit will be assessed a higher usage charge (currently 3% versus 1% for a deficit with an approved deficit reduction plan).
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MONTHLY FINANCIAL REPORTS
There are three monthly financial reports you should review with your respective business manager to make sure you do not have any deficits:
1. Detail Operating Ledger Statement
2. Operating Ledger Transaction Statement Chart 2
3. Payroll Labor Distribution Report
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IMPORTANT BUDGET MANAGEMENT PRINCIPLES TO REMEMBER
• Avoid deficits• Review your department’s financial status monthly• Allocate salaries to grants as soon as they are received so
your monthly fund balances are accurate• Allocate faculty and staff salaries to C-FOP’s based on the
person’s effort (grants, service plans, self-supporting, etc.)• Recover the full costs of providing departmental goods or
services on self-supporting funds. • Charge expenses to the correct C-FOP (e.g. only related
charges on a specific grant fund)
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QUESTIONS