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Frank Goldberg, PhD Vice Provost for Resource Planning & Management Heather J. Haberaecker, PhD Executive Assistant Vice President for Business & Finance.

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Presentation on theme: "Frank Goldberg, PhD Vice Provost for Resource Planning & Management Heather J. Haberaecker, PhD Executive Assistant Vice President for Business & Finance."— Presentation transcript:

1 Frank Goldberg, PhD Vice Provost for Resource Planning & Management Heather J. Haberaecker, PhD Executive Assistant Vice President for Business & Finance BUDGET DEVELOPMENT AND MANAGEMENT

2 Tuition GRF ResearchGRF ICR GRF Health Care Innovation 2

3 FY 2013 3

4 Budget Decision Principles: Ensure fiscal integrity – decentralized responsibility and decentralized accountability Ensure good decision making – assign decision making authority to appropriate entity Maximize use of resources – include financial, physical and human resources Balance priorities – balance support for instructional, research, patient care, economic development and service missions of the Campus Maintain quality – reduce and redirect budgets in a manner that best preserves quality 4

5 Funds flow diagram: ICR 2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE DIRECT RESEARCH EXPENDITURES $1.00 DIRECT COSTS COLLEGE 47.5% COLLEGE RESEARCH GOALS COSTS VCR 7.7% CAMPUS RESEARCH GOALS GRANT AWARD OTHER 32.3% CAMPUS RESEARCH COSTS INDIRECT COSTS PROJECTS 12.5% 5

6 6 FY 2005 ICR Formulaic Allocations & Commitments (Shown as a percentage of the Colleges total F&A earnings) 36.5% 53.9% 65.9% 55.8% 36.8% 55.6% 55.4% 116.2% 57.4% 70.8% N/A 46.0% $ in Millions

7 7 Changes in ICR Allocations FY 2005 – FY 2013

8 How the Funds Flow ICR FY 2013 8

9 UIC Budget Model Budget Units Tuition Distribution Salary Program (Admin) Strategic Initiatives Hold Harmless Space Economy Space Costs UIC Budget Model GRF Tuition Revenue Reallocation State Budget Reductions UA Central Costs 9

10 Funds flow diagram: Tuition 2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE UNDER- GRADUATE TUITION DIFFERENTIAL TUITION 75% TO COLLEGES 25% TO PROVOST 75% TO COLLEGE GRADUATE TUITION DIFFERENTIAL TUITION 75% TO COLLEGES By Headcount 25% TO PROVOST 85% TO COLLEGE 15% TO PROVOST PROFESSIONAL TUITION 85% TO COLLEGES By Headcount 15% TO PROVOST 60% BY CREDITS 15% BY HEADCOUNT 15% TO PROVOST 10% TO FIN AID 15% TO PROVOST 10% TO FIN AID 10

11 Comparison of State Appropriations and Tuition Revenue FY 2007FY 2013 11

12 How Tuition is Distributed 12

13 13

14 14

15 ACCOUNTING FOR YOUR FUNDS What is a C-FOAP? –It is a 25 digit number used to identify transactions for your department (similar to how one would use a bank account number). –We are going to focus on the 3 most important – the C – F - O –C – Chart is a one digit code for a campus (Chicago = 2) 15 CHART C FUND F ORGANIZATION O ACCOUNT A PROGRAM P 1 digit #6 digit #3 or 6 digit #6 digit # 15

16 A Fund provides a cumulative record of the sources and uses of monies. Examples of Funds (types are designated by the first digit of the 6-digit fund number): 1 = State 2 = ICR and other types of unrestricted funds 3 = Self-supporting activities 4 = Grants (federal) 5 = Grants (state, local and private) 6 = Gifts, endowments, service plans (medical, nursing, dental) Your organization code is 6 digits of which the first 3 digits are your department code –Your department code is the most frequently used number 16 ACCOUNTING FOR YOUR FUNDS (cont..)

17 DISTRIBUTION OF INDIRECT COST RECOVERY (ICR) Indirect Cost Recovery (ICR) Revenue (also referred to as Facilities & Administrative (F&A) Revenue) refers to funds generated from the recovery of general infrastructure and other costs that cannot be directly charged when performing extramurally funded research. Typical Standard ICR Distribution 17 Colleges47.5%* Campus44.8% VC for Research7.7% Total100.0% 30% of the 47.5% is governed by the Sponsored Programs Proposal Approval Form (PAF) with a standard 10% college and 20% department split. The 30% may be shared with other departments and colleges based on the contributions of multiple researchers. The other 17.5% is distributed to the college administering the grant.

18 UIC DEFICIT REDUCTION POLICY Deficits are a serious drain on the campus financial flexibility and should be avoided. A usage charge is assessed on all non-state funds (excluding grants and contracts) with a deficit of $10,000 or greater Financial reports are sent to Deans and College Academic Fiscal Officers (AFOs) at the end of 2nd and 3rd quarters and the month of May to allow departments to review and initiate actions to address any potential reportable deficits 18

19 UIC DEFICIT REDUCTION POLICY (cont.) If a deficit remains at the end of fiscal year you will need to submit a deficit reduction plan as follows: 1.$10,000 - $149,999 – Completion of a simple form outlining the cause and planned resolution of the deficit 2.$150,000 - $499,999 - Completion of a three year action plan for resolution of the deficit 3.$500,000 and above - Completion of a five year plan and a meeting to discuss the proposed plan All plans will be reviewed and ultimately approved/disapproved by the Provost. If the plan is not approved, the unit will be assessed a higher usage charge (currently 3% versus 1% for a deficit with an approved deficit reduction plan). 19

20 MONTHLY FINANCIAL REPORTS There are three monthly financial reports you should review with your respective business manager to make sure you do not have any deficits: 1.Detail Operating Ledger Statement 2.Operating Ledger Transaction Statement Chart 2 3.Payroll Labor Distribution Report 20

21 IMPORTANT BUDGET MANAGEMENT PRINCIPLES TO REMEMBER Avoid deficits Review your departments financial status monthly Allocate salaries to grants as soon as they are received so your monthly fund balances are accurate Allocate faculty and staff salaries to C-FOPs based on the persons effort (grants, service plans, self-supporting, etc.) Recover the full costs of providing departmental goods or services on self-supporting funds. Charge expenses to the correct C-FOP (e.g. only related charges on a specific grant fund) 21

22 QUESTIONS


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