Budgeting & Finance

1. $ Budgeting & Finance Senior Leadership Retreat August 18, 2008

2. $ University Structure Board of Trustees • Planning & Budgeting • OBFS: • Budget Office • Purchasing • Grants & Contracts • Accounting • AITS • Human Resources Policy • University Audits University Administration UI at Springfield UI at Urbana-Champaign UI at Chicago • CITES • Management Information • Human Resources • Facilities and Services • Office of Sponsored Programs & Research Administration

3. University Structure Board of Trustees President Vice Presidents Assistant Vice Presidents University Administration University Policy Council President Chancellors Vice Presidents AAMT Academic Affairs Vice Presidents Provosts Vice Chancellors Centralized Business Services Chancellors Provosts Vice Chancellors UI at Springfield UI at Urbana-Champaign UI at Chicago

4. $ Duties of an Administrator • To develop the academic unit strategically within the scope of mission and within resources accessible to the unit; • To provide accountability at the campus level concerning the unit’s fidelity to mission and values; and • To present the case (be an advocate) at the college/campus level concerning the unit’s relationship to strategic concerns of the campus.

5. $ Duties of an Administrator • To assure that the academic unit has an effective process for planning and budgeting; • To manage the academic unit’s resources as required to adapt to changing opportunities and needs; • To assure that units, programs, and other subsidiary organizations are accountable on appropriate grounds.

6. $ Duties of an Administrator • To be appropriately entrepreneurial—look to gifts, self-supporting activities, and partnerships with other units; • To work with the resources available to your unit (no deficits!); • To be responsive to the needs of the institution as a whole.

7. $ Managing Unit Finances • Develop a summary plan for the year that involves all funds • Each month someone needs to reconcile your account statements. Sit down quarterly to review status • Know who owes you money; don’t forget to collect • Have at least two people review transactions • Have your staff attend training

8. Budgets are About Making Choices

9. $ The Budget Process • Spring – Campus/U of I requests developed • July – BOT reviews preliminary budget request • September – BOT approves U of I budget request • Oct/Dec – IBHE/University interaction • December/Jan– IBHE recommendations submitted to the Gov. • February – Governor’s budget recommendations submitted to Legislature • May/June – Legislature acts • June/July – Governor signs appropriation • - Budget allocation to units

10. $ Campus Budget

11. $ FY08 UIUC Budget (000s)

12. $ FY08 UIUC Budget

13. FY97 UIUC Budget

14. $ Budget Process & Distribution of Funds

15. $ The Budget Process • Spring – Campus/U of I requests developed • July – BOT reviews preliminary budget request • September – BOT approves U of I budget request • Oct/Dec – IBHE/University interaction • December/Jan– IBHE recommendations submitted to the Gov. • February – Governor’s budget recommendations submitted to Legislature • May/June – Legislature acts • June/July – Governor signs appropriation • - Budget allocation to units

16. $ Administrative Unit Plans Academic Unit Plans Council of Deans Provost Office & CBOC Review Plans Academic Senate DBC Review Plans Provost Provost Budget Meetings Budget Process Provost’s Annual Planning Guidelines

17. $ New Budget Model • New tuition allocation procedures that will: • Provide incentives for non-major instruction and interdisciplinary programs • Provide clarity and predictability for allocations • Continue incentives provided for graduate, professional and self-supporting tuition while increasing clarity of those allocations. • Develop procedure to allocate funds based on total GRF & tuition rather than just incremental funds. • Develop procedures for providing guidance for non-tuition allocations to units.

18. Current $60 per UG IU Allocations based on share of total Special units (KCPA, WILL. . ) hidden in total Uses multi-year averages New overhead costs split on colleges share of total Proposed $110 per lower div. IU/ $170 per upper div. Fixed $ per IU and major Special units receive separate review Actual earnings, where possible Some overhead costs (utilities & space, to start) based on use Proposed Changes to Budget Model

19. Challenges with Current ICR Allocation Procedures • Two primary streams of ICR revenue to a unit: • 30% of current year’s earnings (generally 25% department/5% college) • 52% of growth over prior year • Tuition remission and F&A are combined—institutes receive remission even though they teach no students • Growth in revenue is not shared with “overheads” ICR is intended to support • ICR spread between institutes and departments in ways that create tension

20. $ Distribution Of All Other Revenues Departmental activities Gift & Endowment income Auxiliary enterprise 100% to College Grants, Contracts, & Federal Appropriations

21. Resources • Accounting Customer Service—Ron Miner, Assoc. Director. 265-5315 • Budgets and Financial Analysis—Pat Hoey, Director. 244-0542 • University Audits—Darla Hill, Director. 265-5400