All Funds Planning FY20 FY23 Kick-off Seminars Jan 27 & 28, - - PowerPoint PPT Presentation

All Funds Planning FY20 – FY23

Kick-off Seminars Jan 27 & 28, 2020

FY2021 Budget Challenges / Considerations

• UArizona Budget Environment
• State Funding
• Tuition & Fees
• Planning Assumptions

SWOT Analysis – All Funds Planning FY20 – FY23

Net Tuition & Fees Flatten; State Appropriation Decreases

Critical Needs Addressed via FY20 Reallocations

FY 2020 – UArizona Revenue Sources, $2.2B

State of Arizona General Fund ($ millions)

UArizona State General Fund Appropriation

JLBC Revenue & Budget Update – Jan 23, 2020

JLBC Revenue & Budget Update – Jan 23, 2020

($ millions)

JLBC Revenue & Budget Update – Jan 23, 2020

FY2021 State Budget Request

JLBC Presentation to Approps Committees

Actuals

Net Revenue from Base Tuition FY 2012 - FY 2023

($ millions)

Projected

Base Tuition Revenues

Source: AAUDE, Annual Academic Year Tuition Required Fees Note: UArizona total excludes Media, Wildcat, and Recreation Center Program Fees

The University of Arizona

Annual Undergraduate Tuition & Mandatory Fees (Not Adjusted for Inflation)

Source: AAUDE, Annual Academic Year Tuition Required Fees Note: UArizona total excludes Media, Wildcat, and Recreation Center Program Fees

The University of Arizona

Annual Graduate Tuition & Mandatory Fees (Not Adjusted for Inflation)

Planning Assumptions FY21, FY22, FY23

• All units should plan for:
• Base budget reductions & assessment changes as communicated in December
• 2% pool for annual salary increase programs effective July 1 each year
• Applicable UCAP & minimum wage adjustments
• ERE rates as proposed for FY21 (not yet approved by Federal cognizant agency)
• Colleges use fall term-end RCM projection model and estimate other non-RCM

metrics/revenues

• Support Units should plan base budget reductions of 4%, 2%, 0% for FY21,

FY22, FY23 respectively based upon estimated reduced assessment revenue resulting from reduced undergraduate revenues

Planning Assumptions: Other Considerations

• Online enrollments & revenues growing
• Significant fund balances throughout the University
• Sponsored projects funding is strong
• Direct costs
• Increased F&A
• Philanthropy is increasing
• Strategic plan impacts

Thank You!

Appendix

The Future

FY 2020 Operating Budget

($000)

FY19 Actuals FY20 Revised Revenues State General Fund Appropriation 252,931 267,700 State GF Approp - Research Infrastructure 14,251 14,250 State GF Approp - Capital Infrastructure Fund 10,552 10,763 Tuition & fees 890,558 914,100 Less Scholarship Allowance (232,468) (256,000) Net Tuition and Fees 658,090 658,100

chg frm prior yr 0.7% 0.0%

Grants & Contracts 707,000 721,900 Financial Aid Grants 56,907 57,900 Private Gifts (operating & capital gifts) 84,578 87,000 Technology & Research Initiative Fund (TRIF) 30,970 30,400 Auxiliary Revenues, Net 205,457 209,600 Other Revenue (no gifts) 166,921 166,900 Total Revenues 2,187,657 2,224,513

chg frm prior yr 3.0% 1.7%

Expenses Salaries & Wages 1,027,003 1,042,400 Benefits (Includes OPEB) 313,970 318,700 All Other Operating 560,016 571,200 Schlrshps & Fellowships, Net of Schlrshp Allow 61,665 69,000 Depreciation 144,250 135,500 Interest on Indebtedness 55,072 77,040 Total Expenses 2,161,976 2,213,840

chg frm prior yr 4.9% 2.4%

Net increase/(decrease) 25,681 10,673

FY2021 Governor’s Proposal

University Net Position

($ billions)

Days Cash On Hand

FY 2008 – Est FY 2020

Days Cash on Hand

71 58 69 73 81 97 105 139 168 182 172 151 135 20 40 60 80 100 120 140 160 180 200 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Est

NEW SYSTEM & PROCESS, BUT WHY?

WHY?

• Communication Tool (strategy, cost savings, successes, needs)
• Proactive vs. Reactive Culture
• Higher Education Climate

(tuition, state support, enrollment trends, public confidence)

• Fiduciary Responsibilities
• Common Language, Platform, and Process
• Align Finances With Strategy at All Levels of the University
• Strategic Plan

PRIOR YEAR PROCESSES

PRIO YEAR PROCESSES

• Local Fund Budget system
• Auxiliary & Designated Funds Only
• By Account and Sub Account
• By Summary Object Code
• By Transfers In/Out
• Narrative Component

Local Fund Budget (LFB)

• Adaptive Planning
• By Org or College/Division
• By Summary Object Code
• Narrative Component
• Planned use of reserve spreadsheet

All Funds Multi-Year Planning (AFMY)

NEW PROCESS

ALL FUNDS PLANNING

• New software system: Budget & Planning System (Axiom)
• Planning by Org, Planning Fund, and Budget Object (grouping of
• bject codes)
• No planning at the account level
• No planning by budget shell codes
• Narrative Component
• Position level planning REQUIRED

ALL FUNDS PLANNING

Data from these three modules feeds into the Budgeting module The All Funds Planning Module is a summary module at the College/Division level and is where Strategic Narratives will be submitted Five Primary Modules:

• RCM Planning Module
• Labor Planning Module
• Budget Request Module
• Budgeting Module
• All Funds Planning Module

WHAT IT WILL LOOK LIKE

Strategic Narratives (part of All Funds Planning Module)

Align Strategic Plans with Financial Plans

Operating Budgets and Multi-Year Plans (Budgeting Module)

By Organization By Planning Fund By Budget Object

RCM Planning/RCM Metrics Labor Planning Budget Requests

WHO WILL BE IMPACTED

College/Division

Unit Head Finance Leader Business Manager

Questions to consider:

• Who will input position level detail

for the department?

• Who will input operational and

revenue projections for the department?

• Who will approve the budgets for

the college/division?

• How will you coordinate

collaboration and communication between all parties involved?

PLANNING ASSUMPTIONS

FY20 PLANNING ASSUMPTIONS

Personnel Planning Assumption FY21 FY22 FY23 ERE Rate 31.0% 31.0% 31.0% Grad Tuition Increase (for Remission Calculation) 0% 0% 0% Minimum Wage - Effective January 1, 2020 (Cost of Living Adjustment Formula Effective January 1, 2021) $12.25/hr $12.50/hr $12.75/hr UCAP Adjustments Unit Specific Unit Specific Unit Specific Personal Services Increases (Will Be Pre-loaded in Tool as “Calculated Pool” for FY21) 2% 2% 2%

FY20 PLANNING ASSUMPTIONS

Operating Budget Assumptions FY21 FY22 FY23 ASC (Revenue) - Effective January 1st (Previously 9.5%) (blended rate if appropriate) 11% 11% 11% ASC (Expense) - Effective January 1st (Previously 1%) (blended rate if appropriate) 2% 2% 2% Reduction in Allocated Revenue (Support Units) 4% 2% 0%

REQUESTING ACCESS

REQUESTING ACCESS

Access must be requested through the Access Provisioning Tool:

TIMELINE

44

RESOURCES

RESOURCES

• Ambassadors across campus
• Office Hours
• Implementation Website: Terms & Definitions Guide, FAQs, Self-Paced

Training Videos

• Budget and Planning System (aka Axiom): Drill-through reports,

Reconciliation reports, Crosswalk Reports, Test Environment

THANK YOU

Office of Budget & Planning