The Periodic Review Report:

Evidence of Linked Institutional Planning

& Budgeting

John PalmucciVice President for Finance & Treasurer,

Loyola College in Maryland

Andrea LexVice President, Middle States Commission

on Higher Education

MSCHE PRR WorkshopMarch 26, 2009Philadelphia, PA

MSCHE Accreditation. . .

is an expression of confidence that an institution is so organized, staffed, and supported that it can be expected to continue to accomplish its mission and goals.

--- Handbook for Periodic Review Reports page v

Standard 2: Planning, Resource Allocation & Institutional Renewal

An institution conducts ongoing planning and resource allocation based on its mission and goals, develops objectives to achieve them, and utilizes the results of its assessment activities for institutional renewal.

Implementation and subsequent evaluation of the success of the strategic plan and resource allocation support the development and change necessary to improve and to maintain institutional quality.

Enables Standard 3: Resource Allocation

The human, financial, technical, physical facilities, and other resources necessary to achieve an institution’s mission and goals are available and accessible.

In the context of the institution’s mission, the effective and efficient uses of the institution’s resources are analyzed as part of ongoing outcomes assessment.

The Good News

Our

Instituti

onal

Plan

I’m a

Gonna

Planning is an Integrated and Iterative Process

Planning

Implementing

Assessing

Using Results Resourcing

To Plan . . .Im

pleme

nt

Plan

Impl

emen

t

Resources

Resources

Resources

. . . and assess

ResourcesIm

pleme

nt

Plan

Impl

emen

t

Resources Reso

urc

es

Why is this a priority?

For the Commission: It is essential that an institution be able to

determine the most efficient use of [scarce, diminishing, restricted] human and financial resources in the service of its mission.

For an institution: It is essential that an institution be able to

determine the most efficient use of [scarce, diminishing, restricted] human and financial resources in the service of its mission.

Both the preparation and review of the PRR are evidence-based efforts

Assess the impact of significant major developments, changes, or challenges since the last evaluation

Review enrollment and financial trends and projections

Assess the extent to which linked institutional planning and budgeting processes are in place

Sooooooooooo . . .

What does a linked institutional planning and budgeting process look like?

And how do we know that it’s working?

Financial Planning

Financial Plan Current and Future Years Realistic Assumptions Enrollment and Revenue

Relationship Tuition and Other Rates Other Income Debt Burden

Rational for Increases Decreases Data Benchmarks Viability Ratios Trends in Net Income/Net Assets Compliance with Bond Covenants

Audited Financial Statements Management Letters IPEDS Enrollment-three previous Current Projections Changes in Financial Condition