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

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

Dec 25, 2023 357 likes •548 views

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

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Where excellence and opportunity meet.™

Budget Model Presentation UBDC 14 February 2017

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Outline

  • Guiding Questions for Today
  • Status Checklist
  • A Tale of Three Pictures…
  • Revenue Assignment Examples
  • Cost Assignment Examples
  • Financial Statements
  • Key
  • Examples
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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)
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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
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Sources Overview

Total Sources

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

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Unit Taxonomy Schematic

All Units Revenue Units (RUs) University Central CUs Cost Units (CUs) Usage-Based CUs Self- Supporting RUs (SSRUs) Academic RUs (ARUs)

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Model Schematic

Total Sources

Revenue Units Central Support Tax Central Fund Direct Costs Usage- Based Indirect Costs Strategic Initiatives University Central Indirect Costs Savings Savings Strategic Initiatives Decentralized Side Centralized Side

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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
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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

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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

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Costs Direct Costs

  • Examples:
  • salaries
  • fringe
  • travel
  • supplies & expenses
  • capital expenditures
  • Assign to unit where they are incurred
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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 ft2% share
  • Human Resources -- Assign cost by FTE %

share

  • Library -- Assign cost by SCH % share
  • Selected Cost Units (CUs) are assigned only to

Academic RUs

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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
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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

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Costs Simplified Example: HR

Assume Budget = $1 Million

*e.g., (0.15)*$1 million = $150,000

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

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Costs Simplified Example: Facilities

Assume Budget = $5 Million

*e.g., (0.15)*$5 million = $750,000

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

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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
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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