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
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