1 / 14

Performance-Based Budgeting

Performance-Based Budgeting. Steering Committee January 28 th , 2013. Agenda Introductions Where we left off (20 min.) PBB working group report –revenue and cost attribution tool (40 min). Revenue Costs (Direct and Indirect)

job
Download Presentation

Performance-Based Budgeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Performance-Based Budgeting Steering Committee January 28th, 2013

  2. Agenda • Introductions • Where we left off (20 min.) • PBB working group report –revenue and cost attribution tool (40 min). • Revenue • Costs (Direct and Indirect) • Committee discussion of strengths and weaknesses of using the revenue and cost attribution tool to inform a budget model (60 min)

  3. Where we left off • 2011-2012 Built a Revenue and Cost Attribution tool – prelude to PBB • Essential for understanding our budgetary environment (long term: revenue = expenses) • Attribution tool is not the budget model • The attribution tool is not an SCH model. It examines the source of all revenue and attributes it accordingly . It will adjust to future changes (State Allocation based on degrees granted, credit for prior learning versus SCH) • Cross subsidies are acceptable, but must be understood and have an upper limit.

  4. What is in a name A common language • Attribution tool (AT) • Budget Attribution Tool (BAT) • Revenue and Cost Attribution Tool (RCAT)

  5. PBB Working GroupThe Revenue and Cost Attribution ToolSEE HANDOUT • Built using 2012-2013 budgets and current enrollment. • REVENUE • Tuition (Undergrad and Grad)Actual versus theoretical tuition collected, residency, differential, UNST classes, SCH redistributions, includes tuition from summer and Salem Center • Remissions • IDC (predicted, can be updated) • Targeted revenue • State Share of research funding • State Share of Instruction

  6. RCAT • EXPENDITURES • Direct Expenses • Summer Session and Salem Center Adjustments (1 year only) • NACUBO Categories- (expenditure classification by function)

  7. RCAT • INDIRECT EXPENDITURES • NACUBO Categories • Drivers per steering group recommendations

  8. Cost DriversAlternatives • Research – fixed per steering committee instructions (FEA- faculty FTE, research support- sponsored research $) • 2-Close Calls Institutional support and Indirect Component of O and M • Summary of effect of changing these drivers • Vote whether group wishes to change these 2 drivers

  9. Effect of Different Drivers vote 56% 19% 25 % ? 57% 37%

  10. Performance Based-Budgeting: strengths and weaknesses of using the RCAT to inform a budget model • Objectives • Get input from the group on the RCAT • At the end of today’s session we will have a better sense of: • It’s effectiveness for budget modeling • What modifications might be needed to the RCAT

  11. Questions for the Team • 1) What is in the RCAT that might make it an effective tool to inform a budget model? • 2) What is missing from the RCAT that prevents it from being an effective tool to inform a budget model? • a) which ones could be incorporated into the RCAT • b) which ones cannot be incorporated into the RCAT

  12. Work Session • Every member of the Steering committee uses as many post-it notes possible to provide responses to each of the questions (put your initials in the lower right corner) • Stick post-its randomly on the white board with the appropriate question number • Break up into assigned groups and categorize individual responses • Label the categories

  13. Group Conversation • Have a group conversation about the categories • Do they feel right? • What is missing?

  14. PBB- next steps…..

More Related