UNIVERSITY OF MASSACHUSETTS BOSTONBudget & Financial Planning

FY14 Budget & GOF UpdateJune 2013

Sue Wolfe Assistant Vice Chancellor, Budget & Financial Planning

GOF Update

▸ Payroll, BuyWays, Pro-Card, FAST, and internal charge-back changes ready to goo All changes (except Payroll) effective July 1o Payroll changes effective July 14

▸ New speed types▸ Employment paperwork

▸ Internal forms

State Budget & UMass Fee Setting

• Governor’s budget

• House Ways & Means

• House budget

• Senate Ways & Means

• Senate budget

• Conference Committee

• Governor’s actions

• Legislative overrides

• Final, approved budget

• Proposed fee changes

• System Office review

• Admin & Finance Committee recommendations

• Board of Trustees’ approval

Jul ?

Jun 19Done!

Pending

▸ State support: $0 or $5.3 million

▸ Mandatory fee increase: 4.9% or 0.0% or something in between

▸ Institutional financial aid: $0 or $1.1 million or $1.9 million

Personnel(position mgmt)

Operating costs(base budget)

Strategic initiativesRequest for new

funding

Non-discretionary

FY14 Budget Process

Revenue

Source: FY14 Budget Planning Summary

Non-discretionary (draft)Pending

Total 23-May 4-Jun 20-JunStaff retention

CoL, merit (new) 3,304 3,304 CoL, merit (Jan annualization) 1,166 1,166 CB, insurance graduate students 225 - - 225Fringe benefit rate incr/(decr) 758 758 Classification project 380 380 Filling long-term vacancies 4,930 4,930

SustainabilityContingency reserve 2,000 2,000 System Office assessment (1,167) (1,167) Contracts, maintenance agreements 2,167 434 - 1,733 Rollover (FY13) 593 - 325 268 Replace program (total = $913k) 613 613 - - General inflation (1.8%) 427 - 427 - Efficiencies

Capital master planISC 1,017 612 - 392 Debt service payments 2,500 2,500 - - Bayside 416 370 - 46

Reviewed by VCs($ in 000)

****

FY14 New Funding Requests (draft)

Contracted services 200,168

EquipmentA Program-specific, specialized classroom 804,572 B Personal computing (office) 144,208 C Other equipment 1,088,470 D New equipment 1,183,707 Subtotal 3,220,957

Employment & staff retention, professional developmentA Additional to staff & related 1,690,374 B Changes in authorized positions 1,134,044 C Staff rentention & staff development 529,772 Subtotal 3,354,190

All otherA One-time 1,216,793 B Base budget adjustments 1,072,032 C Other carryforward requests 2,377,117 Subtotal 4,665,942

FY14 Capacity to ExecuteIssue

▸ putting a fence around money that isn’t spent▸ vacancy vs new employee▸ claim vs spend▸ aspiration vs action plan

Consequence

▸ little flexibility to respond to opportunities and unexpected events

▸ important requests not funded

▸ consistency of message

Revenue diversityEnrollmentStudent feesState support

Grants (federal, state)Other (private, ESS, auxiliaries)

Financial managementExpenditure control

ReportingAnalysis

Multi-year planning

Asset basePhysical infrastructureDeferred maintenance

IT infrastructure

Financial flexibilityEndowment (investments)

Reserves (net assets)Debt

Growing Financial Strength

FY14 Goals▸ Develop multi-yr financial plan with input from subject matter experts

and stakeholders to ensure positive operating margin by FY16, debt service ratio not to exceed 10%, and financial cushion of no less than 20% of operating budget

▸ Identify and support best practices in the efficient and effective use of resources

▸ Provide reporting and analysis that informs and supports executive decisions

▸ Support a budget process and expenditure oversight that brings clarity to the use and allocation of resources

▸ Expand depth of financial management expertise throughout the University through expanded partnerships and professional development opportunities