FY18 Budget & Planning Process. February 10 & 16, 2017

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1 FY18 Budget & Planning Process February 10 & 16, 2017

2 Budget & Planning Cycle Budget Cycle Financial Outlook Planning & Budget Process Questions to consider New PRC Model Organizational Structure Review Budget Process Adaptive Insights Updates Request process AGENDA

3 Step 8 Budget training for unit directors Units assessment and adjustment of current budget (FY17) Step 7 President s State of the College Address Step 6 Units receive budget (Jul) Step 5 Board of Trustees approves budget and tuition and fee increase (Jun) Budget Cycle Step 4 Budget Presentation-Open Forum Final budget developed for Trustee review (Jun) Step 1 New fiscal year begins (Jul) Submit OMB budget request to State (Nov) Step 2 Budget training for unit directors Budget for units established by account for review Budget Change Requests submitted through Adaptive (Feb- Mar) Step 3 Cabinet reviews budget Draft proforma and assumptions tested (May)

4 Financial Outlook Higher Education Revenue from key sources continuing to decline Student demographics Demands for return on investment from higher education New business and delivery models and globalization of education Revenue from key sources continuing to decline State appropriations for public institutions have been steadily declining Need to examine new revenue streams Need to better analyze expenses Go out for grants Pressure from enrollment levels Fluctuating Endowment values and donor support attach donor support

5 Planning & Budget Process Considerations to review: Unit Mission what is the mission of your unit? Operational goals what does your unit need to achieve? Compliance issues what reports or functions are you required to perform? Strategic Goals which goals has your unit been assigned (documented in Weave)?

6 OPERATIONAL Questions to Consider Have there been changes in your unit? Newly assigned responsibilities? Are there compliance items or issues that need to be addressed? Have you reviewed your operational spend and noted any changes you need to make? For example, does a contract have a price escalation, or has a new software created an efficiency, such that an expenditure isn t needed or can be reduced? Have you considered if there are other vendors that might offer better pricing? STRATEGIC What are the outcomes or metrics needed to achieve? Is additional cost to be incurred for these outcomes and have you completed a SPIF request? Can you identify efficiencies to achieve these goals with the resources you already have? STAFFING Have you assessed your organizational structure? Are there changes you would like to make within your structure? Is there a more efficient allocation of tasks that would provide opportunities and/or create efficiencies in your unit? Have you identified back-ups or have you cross trained your unit?

7 New Position Review Committee Model New model focus on a once a year review of the unit s structure Optimal structure of the department will be assessed and determined annually as part of the planning/budget cycle Once reviewed, all openings in the unit will move forward through HR as long as there are no changes to levels or job descriptions Reorganizations or significant changes will need to be reviewed by PRC during the year

8 Example of Organizational Chart Director of Budget and Fiscal Planning Senior Analyst Analyst Student Aids

9 Functional Organizational Chart Director Lead administrator of Adaptive Insights Consolidates and manages annual college-wide operating budget process Monthly financial statements, projections and variance analysis Long-range financial planning and modeling Provides training to College Senior Analyst Develops forecasts and budget controls for all salary, fringe and encumbrances. Administers all position control rules/forms in Banner and Adaptive Manages and directs the State of NJ Budget submission Backup Adaptive administrator and trainer Analyst Monitors and maintains salary, fringe and encumbrances for the College. Runs Connector and reconciles to Adaptive and Banner Finance Assists in financial analysis of trends Review and recommend ways to increase efficiency within the unit and College. Student Aids Monitor the Budget account Verify documentation and complete budget transfers Assist with Adaptive maintenance, reporting and training Update unit and Adaptive procedure guides and training manuals

10 Organizational Structure

11 BUDGET PROCESS

12 Principles of Budget Development Using resources focused on the Mission of the College The planned use of resources will not exceed estimated resources available The College is committed to maintaining resources in order to sustain overall financial health

13 FY18 Planning & Budget Cycle Focus on what is needed in each unit Budget Change requests will be submitted (assumes incremental increases and decreases) All new items will be requested with a funding source in mind Current FY18 Budget balance have a 2% reduction from last year s budget for all non-salary pool items Budgeting is a college-wide process, the Budget Office is here for support and guidance, but each unit owns their budget

14 ADAPTIVE INSIGHTS

15 Updates TRANSACATION DETAIL View transaction level detail directly in Adaptive How implementation affects personal reports and favorites Expected implementation July 2017

16 QUICK DEMO Budget Requests

17 One-on-One Training HOW TO: Enter budget Change requests View current financial data Review availability of funds requested during the FY17 cycle for Change, SPIF and Capital requests View budget adjustments to FY18 base budgets, including 2% cut to non salary pool. View new location of reports

18 College Goal: Financial Sustainability