Prium Brussels 0809 Managing Finance
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Transcript of Prium Brussels 0809 Managing Finance
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PRIUMsite visit september 9-10, 2008
Managing finance & optimizing efficiencyNic Van Craen, director finance
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previous
Presentation about new funding model and its impact on the organisation as seen from the finance department
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agenda
Function of finance department Some keynumbers: annual accounts & budgetsources Introduction to the New government financing model Transition period by unchanged policy As-is situation between 2003-2006 2007: introduction of the new model and impact on university
policy To-be 2008-2013
Introduction of an Allocation model Use of combined integrated data = BI, need for ERP Chaning role of central administration
Risks
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Finance department
Global Mission: improvement of revenues, efficiënt & effectiveness costallocation en –centers
tools: Financial administration: central, legal, operations Financial management: policy Budgeting & forecasting: framework & steering of university policy and
its administration/execution How? responsabilities, 5yr and yearly plan in
accordance to strategic plan of university , link between academic policy and financial policy
External driver: new governement financing model
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Annual accounts (k €)revenues of the financial year 2007 2006
government funding 133.462 126.840institutional funding 83.308 81.140investments/renovation 3.426 3.308student services 2.021 1.980research BOF (performance) 11.861 11.514research other (competitive, project) 32.800 28.854others 46 44
international organisms 7.692 3.863private sector 7.739 6.998Rights, Royalties & Overhead 2.959 2.397tuituin & examinationfees 2.933 4.203financial revenues 13.410 4.901revenues of real property 4.212 3.855various 28.094 17.380
TOTALS 200.500 170.436
expenses of the financial year 2007 2006
staff 105.253 102.483operations, equipment & financials 61.891 53.695
TOTALS 167.144 156.178
surplus 33.356 14.258
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Introduction of a new financing model
First draft of model in 2004 Decree of 14/03/08 Impact starting on Budget 2008 Milestone 2013 – major change in
financing ( no more historical compensation)
Academisation 2013
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Institutional funding model
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Transition period
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As-is situation between 2003-2006:
“frozen” governement funding since 2000, fractional indexation + : fixed, certain and time to prepare - : increase of expenses > index of funding internal budgeting reform preparing change in funding
adapted Budgeting proces: zero based if relevant, central policy on the use of local reserves, projection on 5j-bases
Budgeting as steering-instrument in university policy instead of post-factum material
introduction of active electronic financial administration: use of web-application for ordering, management, reporting & budgeting starting at cost centre level
Imposed to realise a closely defined procedure Need for reallocation of staff in finance department Awareness of the cost centre responsables
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2007: introduction of the new model
Impact on university policy changing role of finance-department
from exclusively executing to expertise and consultancy
supported bij automated systems and BI
not only in this case but as a general organisational impact
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To-be 2008-2013
Introduction of a (new) allocation model – Characteristics:
– Governement Funding model = benchmark– Knowledge on the cost/funding of activities– Solidarity on university-level– Key to goalsetting on faculty/course and university level– Solide, rewarding goal-achievement
– Goals:– autonomy & responsability on faculty-level in accordance to the university-
strategy– Rewarding/sanctioning– Translation of university strategy by internal drivers
– Conditions:– Business intelligence– University management– Professionalism of central administration
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Central administration = overhead!
Contradiction? Increasinge importance of (central) administration while need to maximum
output on academic level
External conditions, justifying & legislation:– Need of Expertise and consulting from central to individual level– Automisation: raptools, campusmanagement, webapplications, avoid double input
Need of:– Strong resolute central administration– Internal audit– Full cost model (introduced by FP7; impact to total university, f.e. timesheeting)
Risks: – Resolute central administration individual academic goals – overkill in administration also at academic staff level, – dependancy on systems– Cost of decision-making– Automisation seems like transeferring work from central to individual level
Threats:– Change in mandate whilst staff isn’t prepared to new situation
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Any questions?
: [email protected] : +32 2 629 20 96