Title: Budgeting and Financial Management at Case 101 Overview of the Case Budget Session 2
1Budgeting and Financial Management at Case
101Overview of the Case BudgetSession 2
November 16, 2006
- John Anderson, Provost
- Christine Ash, VP of Planning Budget
- Ginny Leitch, Associate VP of Budget Financial
Planning
2Budget and Financial Management at Case
101Course Objectives
-
- Session I Understand the alignment between
academic and financial priorities - Understand the budget process on a university
and school level - Session II Ability to read and understand the
Universitys Budget Book - Session III Become familiar with financial
drivers endowments, debt and working capital
3Office of Planning and BudgetsReporting Lines
CFAO Finance and Admin.
Provost Academic
VP Planning Budget (Split Personality)
4Office of Planning and Budgets Functions
- The reorganized Office of University Planning and
Budget will oversee the following major functions
(Aug. 2004) - Financial planning linked to the strategic plan
(five-year plans, budget development) - Budget management (forecasting, compliance,
control) - Institutional research (benchmarking,
internal/external reporting, trend analysis)
5Budget Reporting Structure
- For planning and budget purposes, the Schools,
through their Deans, report to the Provost.
Central Offices report to the President, the
Provost, or the CFAO. - All of the above have a fiduciary responsibility,
and serve as financial stewards of the University.
6Budget/Management Systems
- Current System
- Decentralized
- Every Tub on its Own Bottom (ETOB)
- Proposed System
- Decentralized
- Responsibility Center Management (RCM)
7Financial Planning/Budget/Forecast Process (FY07)
Resource Key FSBC Faculty Senate Budget
Committee UPC University Planning Committee UBC
University Budget Committee
THIS CYCLE ASSUMES THAT A STRATEGIC PLANNING
PLATFORM EXISTS VISION/GOALS/OBJECTIVES
8Timeline
Update Guidelines (Tuition Rates, Endowment
Payout Rate, etc.)
Fall
Winter
Prepare five-year plans
Spring
Prepare the next years budget
June
Budget approved by the Board of Trustees
9Budget Categories
- Income
- Tuition academic year/summer,
undergrad/grad/professional - Endowment restricted/unrestricted
- Gifts restricted/unrestricted
- Research Training
- Overhead
- State
- Other
- Auxiliaries food services/housing
- Direct Expense
- Restricted salary/non-salary (must equal the
total of restricted endowment/restricted
gifts/research training) - Unrestricted salary/non-salary
- Indirect Expense
- University Services examples, Presidents
Office/Budget Office - Student Services examples, Undergraduate
Studies Office/Admissions - Plant utilities/other
- ITS
- Library
- Auxiliaries see above
10Example of Allocation Rule
- Undergraduate Academic Year Tuition
- Every Tub on its Own Bottom (ETOB)
- 15 net tuition allocated on share of UG degrees
- 85 net tuition allocated on share of UG CHRS
- Responsibility Center Management (RCM)
- Same as above, but rather than using current year
data, will use a 2 year moving average
11Questions and Answers