FY 2016 Performance-Based Funding: Budget Execution Policies

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1 FY 2016 Performance-Based Funding: Budget Execution Policies Background UHM received $3.7 Million in General Funds performance-based funding in FY In accordance with the UH strategic plan (UH Strategic Directions, ), UHM has allotted the performance-based funding to the following categories: Student Success Student Recruitment 21 st Century Facilities The funding was allocated to selected units for activities fulfilling the above strategic priorities (reference the FY 2016 First Allocation Adjustment dated October 5, 2015). Funds must be fully expended by June 20, In order to avoid lapsing funds, units are requested to provide an expenditure plan detailing anticipated expenditures by month through June See Attachment 1 for expenditure plan format; plans must be submitted to MBO by COB November 20, Funds that cannot be expended will be swept and reallocated. Units receiving performance-based funding will be required to report on how the funds were spent as well as the outcomes realized from these expenditures. There is no guarantee of future allocations of these funds either to the Manoa campus or to specific campus units. Future funding will be allocated based on the performance funding model recently presented by President Lassner to the Board of Regents (see Attachment 2). Expenditure Policies The following policies apply to the expenditure of performance-based funding. Personnel Costs o Units may charge Graduate Assistants with General Funded BT1 positions to General Fund performance-based funding. o If temporary positions, including Lecturers, are included in the unit s expenditure plan for these funds, MBO will allocate TFSF funds in the amount budgeted for temporary positions and will reduce the GF allocation by the same amount. TFSF funds will be used in lieu of General Funds to avoid placing temporary employees on General Funds. 1 OVCAFO 11/10/15

2 FY 2016 Performance-Based Funding Budget Execution Policies (continued) o Position management practices outlined in the FY 2016 Budget Execution Policies apply to hiring on these funds. Other Costs o Units may expend general funds on non-personnel costs that fulfill the purpose of the performance-based funding. Expenditure Deadlines o Units must expend their performance-based funding allocation by June 20, 2016 (the May 31, 2016 cut-off for GF expenditures does not apply). Account Code Structure Separate Budget Plan IDs and Budget Control accounts for performance-based funds have been established at the campus level. General Fund Budget Plan IDs will contain performance-based activity with the exception of temporary personnel. TFSF Budget Plan IDs and Budget Control accounts have been created for temporary personnel costs. The Budget Plan IDs were created only at the campus level in order to facilitate reporting to the legislature. Units will be responsible for creating accounts against these campus Budget Plan IDs. Manoa Budget Office will push the respective expenditure budgets to the General Fund accounts, and will push the respective allocation budgets to the TFSF accounts associated with these activities. To ensure that the allocation of these funds is reflected in KFS in a timely manner, units are requested to establish the necessary accounts by November 20, When establishing accounts, units should use the following Budget Plan ID references to align the allocations to the correct type of performance-based funding: General Funds o BPID MA PERF GF Student Success o BPID MA PERF GF Student Recruitment o BPID MA PERF GF 21 st Century Facilities TFSF Funds o BPID MA PERF TFSF Student Success o BPID MA PERF TFSF Student Recruitment o BPID MA PERF TFSF 21 st Century Facilities 2 OVCAFO 11/10/15

3 FY 2016 Performance-Based Funding Budget Execution Policies (continued) In addition, units should use their respective FO code and Org code. This will allow units to see their total allocation when the ethority budget-to-actual reports are used. Units may create as many accounts as needed to assist in tracking their share of the performance-based funding. Any expenditures incurred before the new accounts are created must be transferred to the performance-based fund accounts for reporting purposes. Reporting Implications When running reports, units will see multiple Budget Plan IDs in the respective fund and for the respective type of performance-based funding. For example, if a unit receives General Funds for Student Success, they will see their typical Budget Plan ID for General Funds, as well as the campus Budget Plan ID for General Funded Student Success performance-based funds. Filtering the report for the unit s FO code or Org code hierarchy will ensure that the unit will only see their share of the performancebased funding in the campus Budget Plan. Deadlines November 20, 2015 Create accounts in KFS November 25, 2015 Enter expenditure budgets in KFS; submit monthly expenditure plans to MBO June 20, 2016 Final date for expenditures 3 OVCAFO 11/10/15

4 FY 2016 PERFORMANCE-BASED FUNDING EXPENDITURE PLAN - GENERAL FUNDS Attachment 1 - Page 1 Level V Program: STUDENT SUCCESS - GENERAL FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants (BT-1 only) 0 O: Other 0 STUDENT RECRUITMENT - GENERAL FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants (BT-1 only) 0 O: Other 0 21ST CENTURY FACILITIES - GENERAL FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants (BT-1 only) 0 O: Other 0 GENERAL FUND GRAND TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

5 FY 2016 PERFORMANCE-BASED FUNDING EXPENDITURE PLAN - TUITION FUNDS Attachment 1 - Page 2 Level V Program: STUDENT SUCCESS - TUITION FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants 0 O: Other 0 STUDENT RECRUITMENT - TUITION FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants 0 O: Other 0 21ST CENTURY FACILITIES - TUITION FUNDS Permanent Personnel 0 Temporary Personnel 0 Lecturers 0 Graduate Assistants 0 O: Other 0 TFSF FUND GRAND TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

6 FY 2016 PERFORMANCE-BASED FUNDING EXPENDITURE PLAN - CONTROL TOTAL Attachment 1 - Page 3 Level V Program: 0 STUDENT SUCCESS - CONTROL TOTAL Permanent Personnel Temporary Personnel Lecturers Graduate Assistants O: Other STUDENT RECRUITMENT - CONTROL TOTAL Permanent Personnel Temporary Personnel Lecturers Graduate Assistants O: Other ST CENTURY FACILITIES - CONTROL TOTAL Permanent Personnel Temporary Personnel Lecturers Graduate Assistants O: Other CONTROL TOTAL GRAND TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

7 U n lye rsity of H awail Syste m PRESENTED TO THE UNIVERSITY OF HAWAII BOARD OF REGENTS NOVEMBER 5, 2015 PRESIDENT DAVID LASSNER Performance Funding Model for the

8 Performance funding appropriation in H.B. No. 500 HD1, SD1, CD1, 2015 $6,360,81$ for fiscal year may be transferred to other University of Hawaii program IDs in accordance with performance based outcomes relating to student achievement and degree attainment and articulation as established by the president of the University of Hawai9 Ihe president of the University of Hawai i shall devise the metrics and standards for the performance-based outcomes

9 Methodology Adopt approach commonly used in states with campuses that have diverse institutional missions: 1) Establish maximum performance awards by unit based on enrollment size and mission (cost) 2) Select measures based on UH Strategic Direction goals o Number of degrees and certificates awarded o Number degrees and certificates awarded to Native Hawailans o Number of STEM degrees and certificates awarded o Number degrees and certificates awarded to Pell recipients o 150% (3 and 6 year) graduation rates Transfers from CC s to UH four-year institutions (to and from)

10 Preliminary maximum performance awards (based on 2014 enrollments) Calculated AYFTE Undergrad 1/ Calculated AYFTE Graduate 2/ Total FTE Total UH Mãnoa UH Hilo UH West O ahu UHCC 33,252 4,263 37,515 12,000 3,672 15,672 2, ,349 1,790 16, ,880 Cost Per FTE for IPEDS Peer Group 3/ $20,706 $16,122 $14,487 $11,238 Total Cost (FTE X Cost Per FTE) I $594,125,102 $324,504,432 $53,992,578 $25,930,658 $189,697,440 % of Total Cost / 100% Percentage of Performance Pool Available r Maximum Award $6,360, % $3,474, % $578, % $277, % $2,030,937 1/ Analytical Year FTE; calculated as SSH / 30. UH West O ahu includes a growth factor of the average enrollment growth for the past three years (Fall 2013, Fall 2014, Fall 2015). 2/Analytical Year FTE; calculated as SSH / 24. 3/ IPEDS peer group defined in the Efficiency and Productivity metrics (Fiscal Year data).

11 Performance measures summary of goals Measure UH Mãnoa UH Hilo UH West O ahu UHCC Degrees & Certificates 4% 5% 5% 5% Awarded* Degrees & Certificates 4% 5% 5% 5% Awarded Native Hawn* Degrees & Certificates 4% 5% 5% Awarded STEM* Degrees & Certificates 4% 5% 5% 5% Awarded PeII* 150% Graduation and 65% by % by % by % by 2021 Success Rates UHCC Transfers to 4-YRS TED TBD TED TBD * Targeted growth rate per year

12 Proposed Weighting of Measures by Unit* Measure UH Mänoa UH Hilo UH West O ahu UHCC Degrees & Certificates 30% 30% 30% 30% Awarded* Degrees & Certificates 10% 10% 15% 10% Awarded Native Hawn* Degrees & Certificates 10% 10% 0 10% Awarded STEM* Degrees & Certificates 10% 10% 10% 10% Awarded PeII* 150% Graduation and 30% 30% 30% 30% Success Rates UHCC Transfers to 4-YRS 10% 10% 15% 10% TOTAL 100% 100% 100% 100% * Subject to Change

13 Additional Considerations >Executive restrictions from B&F/Governor may be applied across all amounts Units may earn partial awards for performance improvements on measures that do not fully reach the targets >Funding unearned by one unit can be earned by another that exceeds performance targets >FY16 funding to be distributed based on BOR-approved operating budget for FY16 and proportions used for maximum performance awards >All campuses directed to make FY16 investments that will enable performance improvements during FY16 to positively impact FY17 performance awards