ASL Budget Forum. May 8, 2017

Transcription

1 ASL Budget Forum May 8, 2017

2 Today s Agenda Final model (changes) Governance Philosophy Current Governance Structure New Governance Structure

3 Model Changes Changes since Winter Forums Revenue estimates have been updated (final estimate) FY18 Academic Support & Institutional Overhead have been updated (final) Facilities data has been updated, calculation modified Colleges are allocated facilities costs based on department owned classroom/lab/office space Registrar controlled classrooms no longer part of the allocation Efficiency Target calculation changed Formerly calculated as % of total revenue Now calculated as % of FY17 expenses (March forecast) Equipment/technology pools reduced to balance budget

4 Five Critical Spreadsheet Errors 1. Fidelity's $2.6 Billion "Minus Sign Mistake" Lesson learned: Be sure to differentiate your gains from your losses, and have another employee review the work. 2. The $24 Million "Clerical Error" at TransAlta Lesson learned: Have another employee double-check the documentation. 3. Fannie Mae Discovers $1.3 Billion "Honest" Mistake Lesson learned: When billions are at stake, it's best to have a financial peer review the documentation. 4. University of Toledo Loses $2.4 Million in Projected Revenue Lesson learned: Future-looking financial statements should have extra scrutiny and review. User training would also help prevent these formula-based errors. 5. CWU CFO miscalculates off the top calculation in RCM Spreadsheet Lesson learned: All of the above.

5 Recap: Goals of New Budget Model Innovation Efficiency Sustainability Transparency Culture of accountability

6 New Budget Model at Winter Forums FY18 Model Income Statement College of Arts & Humanities College of Education & Prof Studies College of Business College of the Sciences Academic Unit Total Total Net Tuition Revenue 24,170,460 33,057,547 15,782,371 44,792, ,802,525 Total Academic Support Allocation 3,424,386 4,683,477 2,235,991 6,345,994 16,689,848 Total Institutional Overhead Allocation 8,858,159 12,139,045 5,146,330 15,569,342 41,712,875 Total Indirect Allocations 12,282,544 16,822,522 7,382,321 21,915,335 58,402,723 Reserves ,450,000 Net Revenue Allocation - State/Tuition 11,887,916 16,235,025 8,400,050 22,876,811 55,949,802 Net Revenue Estimate - Self Support (148 2,006,818 4,285,661 1,609,972 3,030,819 10,933,270 Total Available Resources 13,894,734 20,520,686 10,010,022 25,907,630 66,883,072 Total Direct Expenses 15,212,698 19,560,946 9,822,594 23,818,748 68,414,985 Efficiency Target (347,368) (513,017) (250,251) (647,691) (1,758,327) Total Potential Fund Expenses 14,865,329 19,047,928 9,572,343 23,171,057 66,656,658 Provost Subvention 970,595 (307,607) (91,416) (571,573) - Margin (Revenues - Direct Expenses) (0) 1,165, ,263 2,165, ,415

7 New Budget Model Current FY18 Model Income Statement College of Arts & Humanities College of Education & Prof Studies College of Business College of the Sciences Academic Unit Total Net Revenues 24,269,315 33,198,358 15,848,302 44,979, ,295,812 Less Equipment Reserves (385,891) (500,595) (245,144) (695,719) (1,827,349) Revenue Less Equipment Reserves 23,883,424 32,697,763 15,603,158 44,284, ,468,463 Blended Revenue % 20.51% 28.07% 13.40% 38.02% Total Academic Support Allocation 3,590,933 4,916,191 2,345,974 6,658,228 17,511,326 Total Institutional Overhead Allocation 8,995,676 12,587,682 4,375,241 15,813,256 41,771,854 Total Indirect Allocations 12,586,609 17,503,872 6,721,215 22,471,484 59,283,180 Net Revenue Allocation - State/Tuition 11,296,816 15,193,890 8,881,943 21,812,633 57,185,283 Net Revenue Estimate - Self Support (148 2,006,818 4,285,661 1,609,972 3,030,819 10,933,270 Total Available Resources 13,303,634 19,479,551 10,491,915 24,843,452 68,118,553 Total Direct Expenses 15,242,226 19,547,024 9,827,715 24,059,369 68,676,334 Efficiency Target (376,103) (494,352) (242,043) (595,536) (1,708,034) Total Potential Fund Expenses 14,866,123 19,052,672 9,585,672 23,463,833 66,968,301 Provost Subvention 1,562,489 (245,875) (521,979) (794,635) - Margin (Revenues - Direct Expenses) (0) 181, , ,984 1,150,252

8 Budget Governance Philosophy Shared responsibility System of checks and balances regarding model goals Ensure University goals are met Ensure transparency of budget policies and processes Academic and Administrative representation President has final authority Consultation with Cabinet Consideration of Executive Budget Committee recommendations Reminder: All budget committees are advisory in nature

9 Current Budget Governance Structure Board of Trustees President (Cabinet) CFO Budget & Finance Cmte

10 Budget Model Governance Gaps Space Utilization Instructional Equipment & Technology Academic Support & Institutional Overhead The System (AUX & Student Funds) State Funded Capital Projects

11 Proposed Budget Governance Structure Board of Trustees President (Cabinet) State Funded Capital Sub-Committee Budget Executive Committee CWU System Budget Sub-Committee Allocations Sub- Committee Space & Equipment Sub-Committee Tuition Waiver Sub- Committee

12 Budget Executive Committee Advises the President on the use of the university s funds in alignment with mission and goals Evaluates unresolved budget issues from subcommittees Reviews & recommends comprehensive budget to senior leadership Evaluates model components periodically to ensure desired behaviors, mitigate unintended consequences, recommend adjustments

13 Budget Executive Committee - Membership Co-Chairs CFO & Provost College dean (2) Faculty Senate President Dean of Student Success ADCO Chair Controller Associate Director, Financial Planning & Analysis Employee Councils (2) ASCWU President

14 Budget Allocations Sub-Committee Promotes collaboration between academic & support groups Clarifies service levels and evaluates funding levels Evaluates financial plans proposed by allocated units during budget development Hosts annual budget summits Recommends comprehensive academic support and institutional overhead budgets to Budget Executive Committee

15 Budget Allocations Sub-Committee Membership Chair-Associate Provost, Undergrad & Faculty Affairs College Dean ADCO Rep Faculty Senate Budget Committee Chair Student Success Rep Non-college Dean President s Div. Rep Operations Div. Rep Business & Financial Affairs Rep Enrollment Management Rep Employee Council Rep Student Rep

16 Space & Equipment Budget Sub-Committee Advises on use of instructional equipment & technology funds Acts as broker for units wishing to give up or acquire academic space Advises on the development of polices and procedures for the management of space Ensures space data is accurate and reliable

17 Space & Equipment Budget Sub- Committee Membership Chair Associate Provost Extended Learning & Outreach College Dean (2) Non-college dean Academic chair (2) Faculty Senate Rep Director, Information Services Executive Director Facilities Director, Maintenance Ops

18 Tuition Waiver Budget Sub- Committee Evaluates tuition waiver policy Evaluates new tuition waiver program requests Ensures tuition waivers are distributed properly based on waiver criteria Recommends strategic tuition waiver plan and related funding to Budget Executive Committee

19 Tuition Waiver Budget Sub- Committee Membership Chair VP Enrollment Management College Dean (4) Non-College Dean Athletic Director ADCO Representative Faculty Senate Representative Student Success Representative Director, Student Financial Services Employee Council Representative ASCWU Representative

20 CWU System Budget Sub - Committee Recommends comprehensive CWU System budget to Budget Executive Committee Ensures compliance with bond covenants Membership & Charter TBD

21 State Funded Capital Sub- Committee Recommends prioritized state funded capital budget to Budget Executive Committee Membership & Charter TBD

22 Next Steps Submit questions or feedback to Go Live 7/1/17!

23 Discussion