19/20 Budget Process Overview Question and Answer Session for Experienced Users

Transcription

1 19/20 Budget Process Overview Question and Answer Session for Experienced Users Office of Financial Strategy Institutional Planning & Assessment Financial Reporting

2 Session Objectives To Communicate and Discuss: University s context for strategic planning, resource allocation and financial planning Key Changes to 2019/20 budgeting processes Your questions

3 Context for Financial Planning Board Directives: 2019/20 Balanced Budget Alignment with Reserves Policy Long-Term Viability

4 The Full Planning and Budgeting Cycle Strategic Planning Resource Allocation Financial Planning Monitoring and Tracking Forecasting Reporting and Analysis Institutional Planning & Assessment Financial Services

5 The Full Planning and Budgeting Cycle Accelerated Timelines and Planning Inputs Strategic Planning Resource Allocation Financial Planning Monitoring and Tracking Forecasting Reporting and Analysis Inaugural Year for Strategic Planning Institutional Planning & Assessment Financial Services

6 Planning & Resource Allocation Timelines Strategic Planning Framework: a) Provost planning meetings with Deans (Nov/Dec 2018) b) Strategic Plan Submission Forms Revenue Centres FINAL October 31, 2018 Support Centres FINAL TBD /20 Resource Allocation: a) Deans Council Final resource allocation decisions for Revenue centres/vice president level envelopes December 18, 2018 b) TABBS data release December 18/19, 2018 c) Other key dates TABBS presentations to Revenue Centres Starting in Jan 2019 TABBS presentation to SBA Finance Group Jan 23, 2019 Tuition consultations for 2019/20 Jan/Feb 2018 Final budget reporting to the Board March 18/19, 2019 Government budget release ~March 21-23,2019

7 Resource Allocation assumptions 0% change provincial operating grant Progress as compared to U of R in SUFM SUFM model changes impact Enrolment growth of 500 students over 18/19 Average tuition rate growth of 3% Continued progress towards closing the international differential gap to median $5M of prior year deficit reduced through other central cost savings strategies Other measures to restore reserves within policy

8 2019/20 Model Inputs Metrics used to allocate UPOG: -Qualifications Awarded -Student Headcount -Full Load Equivalent Teaching -Research Revenue (5 year average) -Active Researchers 2017/18 Metrics (For UPOG and Indirect Costs) (Actuals) Metrics used to allocate Indirect Costs: - Eligible Researchers, Research Fund Transactions, Student Headcount, Graduate Headcount, Faculty/Staff Count, Total Expenses, Net Assignable Square Metres 2018/19 Tuition $ (Forecast) & Indirect costs $ (budget) Provincial Operating Grant (Forecast) 2019/20 TABBS Model to Inform 2019/20 Allocations Principle: The model includes the latest complete information available and for tuition uses a forecast of current year at the point of decision making.

9 The Full Planning and Budgeting Cycle Multi-Year Financial Planning Strategic Planning Resource Allocation Financial Planning Monitoring and Tracking Forecasting Reporting and Analysis Institutional Planning & Assessment Financial Services

10 Multi-Year Financial Planning Purpose and Objectives Supports alignment, and identifies gaps, between financial resources and strategic plans. Identifies resourcing requirements and support resource allocation conversations. Provides a financial roadmap for detailed annual budgeting.

11 The Full Planning and Budgeting Cycle Fund Balance Activities Strategic Planning Resource Allocation Financial Planning Monitoring and Tracking Forecasting Reporting and Analysis Institutional Planning & Assessment Financial Services

12 Fund Balances Financial Reporting Quarterly Financial Reporting Package to Board Significant Changes in Fund Balances Your college/unit Financial Analyst: ers_office.php Designated Funds regular project review January 2019; quarterly on-going proceeding according to Terms of Reference? project complete? update?

13 Key Changes for 2019/20 Budgeting for Interfund Transfers: Interfund Transfers have been set to nil in the initial 2019/20 budget. Must record interfund transfers on the new Interfund Tracking Form, showing the source/destination. = + cos + sin

14 Key Changes for 2019/20 FORM - Interfund Transfer Budget Tracking Interfund disclosure to ensure the completeness of interfund transfer budgets under comprehensive budgeting COLLEGE/UNIT: FISCAL YEAR: DESCRIPTION AMOUNT 3 digit fund type (operating) or Restricted Fund type BUDGET DETAILS* 6 digit FUND ORG ACCOUNT PROGRAM ACTIVITY 3 digit fund type (operating) or Restricted Fund type OFFSET DETAILS ** 6 digit FUND ORG ACCOUNT PROGRAM ACTIVITY * Columns A to H should be used to record the debit details of the interfund transfer amounts that have been entered into Budget Development for your Responsibility Centre or the debit details of amounts expected from other units. Amounts will be outgoing (positive). ** Columns J to O should be used to record the credit details of the interfund transfer offset (amounts will be negative) recorded in columns A to H.

15 Key Changes for 2019/20 Improvements to APEF (105) Budgeting: Continues to be problematic for budgeting, forecasting and variance analysis Need to consider both incoming funding allocations and outgoing expenditure activities Possible solution; distributed (using historic averages) into budget only funds under the main operational organization code

16 Key Changes for 2019/20 Position and Salary Verification Worksheet Data File: Based on feedback received from responsibility centres Extracted from the Salary Database Submission requirements are unchanged

17 Reminder Budgeting Crystal Reports allow RCs to review summarized salary and non-salary budget (and actual) information Salary and Non-Salary Reports Detailed Budget Summary (review report 4992 for list of all funds) Operating and Non-Operating Funds Non-salary Reports 5007 Budget Comparison by Fund 5008 Budget Comparison by Organization 5009 Budget Comparison by Account Variance Analysis Report Quarterly Variance Analysis Note: Crystal report non-salary data is updated nightly until Budget Development closes Crystal report salary data is updated every Friday (for reports and 11727)

18 Contact Office of Financial Strategy Kris McWillie Manager Marj Talbot Financial Analyst Jan Baxter-Jones Financial Analyst Meagan Schweighardt Financial Analyst Sherley Lorezca Financial Analyst Institutional Planning & Assessment: Jen Freeman Senior Analyst Financial Reporting Sandra Baptiste Manager

19 Reference Slides

20 Budget Framework Project - Update Phase 1: Business Case Development Phase 2: Interim Institutional Framework Phase 3: Future Framework Definition Phase 4: Framework Implementation Phase 5: Implementation Finalization and Governance

21 Risks Earlier decision making = more uncertainty Provincial operating grant a) Modeling 0% is an increase over past years b) Further restrictions of unrestricted grant? SUFM model changes a) Modeling ~$800K decrease Enrolment growth does not materialize a) ~$3.5M dependent on enrolment growth

22 Risks Investment income rates drop or further decreased pool to earn income a) Investment income currently projected at ~$2.5M lower because of shrinking investment pool. b) Projections are based on 5.2% return Possible strike costs a) Unknown. Crisis Management Team is working on cost estimates