Academic Affairs Fiscal Contacts Meeting

1. Academic AffairsFiscal Contacts Meeting September 20, 2016 Adam DiProfio x22565

2. Agenda • SOFI Fund Swap • Recent Changes • ASSA Assessment • Masters Growth Incentive – Enrollment balancing • On-going & Upcoming Projects • Divisional Support Model • Decentralizing Benefits • TA Allocation Formula

3. SOFI Fund Swap • 1st Fund Swap completed in August • We will do a 2nd transfer in October • Will likely need a final small transfer in June

4. Auxiliary & Self Supporting Activities (ASSA) Assessment • ASSA Assessment no longer based on expenditures • Effective 16/17 based on 3.4% of revenue http://blink.ucsd.edu/finance/accounting/SSA/#Overhead-Cost-Recovery-Rates:-D • Process: • Charges processed a month in arrears • Charged at Level 2 Organization / Fund Level

5. Masters Growth Incentive – New Funding Methodology • Baseline Funding • Departments receive all of the baseline funding they received in the original period. • Growth Funding • Allocate $9,280 per major student to the department based on the following split: • 1. 25% of funds are allocated to home department. • 2. 75% of funds are allocated based on change in enrollments from the baseline period. • The new split allocates funds according to workload, so that departments are rewarded for the enrollment load they handle.

6. Proposed Resident / Non Resident Split • Current model assumes a 50/50 ratio of Res / Non Resident for new growth • Actual ratio of growth was 90%+ Non Res • Effective 16/17 –allocation is to be based on actual ratio

7. Divisional Support Model • Preliminary numbers to Dean’s Offices soon • Deans will adjust and provide allocations to Departments • Departments will need to submit an Operating Budget and Org Chart to Dean’s Office/EVC • Budget should include all Operating Budget revenue sources including: carry forward balances, masters growth incentive, concurrent enrollment, summer session income, etc. • Program Code Hierarchy

8. Changes to the Support Model • 3% salary escalation • Model funding increased from 98% to 100% • 2 year workload average - Faculty up, Students up, Research down • 20% increase in undergrad SAO workload ratios • Increase in UG SAOs funding must be spent on additional UG SAOs • Will include benefits

9. Decentralizing Benefits – Why? • Campus reporting shows a large budget within Academic Affairs that belongs in the departments • Monthly reimbursement is administratively burdensome • Benefits shouldn’t always be provided centrally • Preparing for Composite Benefit Rates • Academic Affairs is one of the last areas of campus with centralized benefits • This is how soft-money budgets already work

10. Benefits – Tentative Plan • Allocate sub 6 benefits with allocations: • Perm sub 0 & sub 1 • TA & Temp FTE • Other allocations where benefits are included • Self funded activities provide their own benefits • Until we have composite benefit rates we will adjust sub 6 balances at end of the year • Prorated to sub 0 & sub 1 budgets provided by EVC

11. Potential TA Allocation Revision • Note: We are still early in the process • Concerns about the current model: • 2 decades old • PRC ratios aren’t understandable / justifiable • Faculty debit • Used as a way to increase Grad support

12. Potential TA Allocation Revision • Potential solution • Move to class/instruction type funded ratios (TA intensive vs. non-TA intensive) • Course debit instead of faculty debit • In order to work we would need: • Consistent way to categorize courses • Equitable TA needs across disciplines • Supplemental Block Grant for additional Grad Support

13. Thank you. Adam DiProfio x22565