Presentation is loading. Please wait.

Presentation is loading. Please wait.

RHODES UNIVERSITY BUDGET 2014 LAUNCH PRESENTATION TO BUDGET COMMITTEE 29 July 2013 Developed and presented by Geoff Erasmus Management Accountant.

Similar presentations


Presentation on theme: "RHODES UNIVERSITY BUDGET 2014 LAUNCH PRESENTATION TO BUDGET COMMITTEE 29 July 2013 Developed and presented by Geoff Erasmus Management Accountant."— Presentation transcript:

1 RHODES UNIVERSITY BUDGET 2014 LAUNCH PRESENTATION TO BUDGET COMMITTEE 29 July 2013 Developed and presented by Geoff Erasmus Management Accountant

2 BUDGET 2014 CONTENT  Purpose of Budget Launch  Budget Process Framework  Key Elements  Strategy  Budget Information System  Budget Principles  Budget Process Steps  Budget Cycle/Timeline  Budget 2014  Key Parameters  Budget Templates  Budget Submissions  Time-table  Questions

3 BUDGET 2014 PURPOSE OF BUDGET LAUNCH  Get everyone on board  Present the process  Introduce and explain new aspects  Clarify uncertainties

4 BUDGET 2014 CONTENT  Purpose of Budget Launch  Budget Process Framework  Key Elements  Strategy  Budget Information System  Budget Principles  Budget Process Steps  Budget Cycle/Timeline  Budget 2013  Key Parameters  Budget Templates  Budget Submissions  Time-table  Questions

5 BUDGET 2014 INFORMATION SYSTEM Designed to link and support all the elements of the budget. INFORMATION SYSTEM Designed to link and support all the elements of the budget. Purpose The purpose and objectives of the budget is understood by all Purpose The purpose and objectives of the budget is understood by all Principal Budget Factor Early identification of the appropriate factor to prevent delays Co-ordination Inter-relationships are managed and all stakeholders involved Participation Budget holders participate in setting their own budgets KEY ELEMENTS FOR A GOOD BUDGET Information Adequate information made available to those involved in the process Information Adequate information made available to those involved in the process Inter-relationships Inter-relationship of budgets are understood and managed in relation to the principal budget factor

6 BUDGET 2014 PURPOSE Define Purpose and Objectives with Senior and Top Management input Communicate to stakeholders through intranet and budget manual CO-ORDINATION Develop stakeholder matrix Schedule budget launch Review and refine time- table with relevant stakeholder buy-in PARTICIPATION Survey to determine budget involvement Launch budget Ensure maximum budget committe attendance Maintain contact BUDGET PROCESS STRATEGY INFORMATION Review and update budget manual with appropriate information Provide trends of historical spend PRINCIPLE BUDGET FACTOR Establish the principal budget factor early Prioritise the development of this budget in the time- table INTER-RELATIONSHIPS Develop a budget matrix indicating inter-relationships Schedule the budgets according to the relationships

7 BUDGET 2014 PURPOSE Purpose expressed in the Institutional Planning & Review Framework Communicated to stakeholders through the budget manual Purpose expressed in the Institutional Planning & Review Framework Communicated to stakeholders through the budget manual CO-ORDINATION Stakeholder matrix developed Budget launch on 29 July 2013 Timetable agreed with relevant stakeholders Stakeholder matrix developed Budget launch on 29 July 2013 Timetable agreed with relevant stakeholders PARTICIPATION Three Budget Committee meetings Academic budget requests to Deans’ Forum Training for budget developers HOD’s sign-off Three Budget Committee meetings Academic budget requests to Deans’ Forum Training for budget developers HOD’s sign-off BUDGET STRATEGY INFORMATION Budget manual available on the Finance Divisions website Templates include historical budget and actual expenditure information Budget manual available on the Finance Divisions website Templates include historical budget and actual expenditure information PRINCIPLE BUDGET FACTOR Subsidy grant determined to be the principal budget factor Subsequent budgets to be developed Subsidy grant determined to be the principal budget factor Subsequent budgets to be developed INTER-RELATIONSHIPS Budget matrix developed Budgets scheduled according to the relationships Budget matrix developed Budgets scheduled according to the relationships

8 BUDGET 2014 BUDGET INFORMATION SYSTEM What to expect from an information system

9 BUDGET 2014 BUDGET INFORMATION SYSTEM Speed – can be achieved dependant on the structure of the budget model Flexibility – very flexible if the model is built correctly Intelligence – allows for consolidation, multiple views and analyses Ease of use – limited training for input users EXCEL BASED Speed – download to excel required for review, reporting and analyses Flexibility – limited to input only, download to excel for further use Intelligence – limited use, download to excel required Ease of use – limited training for input users, download to excel for further use with further manipulation required PROTEA BASED Objective: to facilitate a budget process with speed, flexibility, intelligence and ease. Immediate solution: use MS Excel to develop user-friendly input templates and a budget for easy consolidated, analyses and presentation.

10 BUDGET 2014 BUDGET PRINCIPLES Balanced budget to be achieved Zero-based approach Cross-subsidisation Broad Participation and Shared Responsibility Fairness and Transparency Accountability

11 BUDGET 2014 Key Inputs and ParametersDevelop BudgetsReview and Refine Developed by Finance and budget holders. The various budgets are consolidated to develop the university budget. Finance reviews and refines budgets with budget holders. Budget is presented to Budget Committee for further refinement. Determine the key inputs and parameters. Budget manual is prepared and distributed. Budgets include Subsidy Income, Student fees, Academic expenditure, Capital Equipment, etc. Academic departments, Divisions, Residences, Consolidated University, Surplus/Deficit. Inputs include Enrolments, Fees, etc. Parameters include CPI %, Salary Increase %, etc. Inputs include Enrolments, Fees, etc. Parameters include CPI %, Salary Increase %, etc. Budget is presented at F&GP, Senate and finally Council for approval. Budget holders are advised of their final budget allocations. Consolidated University and Residences budgets, detailed per Division. Balanced budget. Approval and Sign-off BUDGET PROCESS STEPS

12 BUDGET 2014 JanFebMarAprMayJunJulAugSepOctNov Transfer running budget grants Budget launch with budget manual distributed Budgets consolidated and reviewed Preparation for new budget Budgets developed throughout University Budget presented at Budget Committee Budget finalised and communicated to stakeholders Dec Budget presented for approval at F&GP and Council BUDGET CYCLE Academic capital budget grants allocated 6 MONTHS

13 BUDGET 2014 CONTENT  Purpose of Budget Launch  Budget Process  Key Elements  Strategy  Budget Information System  Budget Principles  Budget Process Steps  Budget Cycle/Timeline  Budget 2014  Key Parameters  Budget Templates  Budget Submissions  Time-table  Questions

14 BUDGET 2014 BUDGET 2014 KEY PARAMETERS RU BENCHMARKS INCOMEBudget 2013Budget 2014COMMENT 1Block Grant Subsidy increase8%7.5%Preliminary 2Student Fee increase8% Preliminary 3Student Enrolments Proposed 3.1Under-graduate Post-graduate Occasional4345 EXPENDITURE 4Staff Cost : Income ratio69.6%68.0% Preliminary ECONOMIC INDICATORS CPI Actual 2012Actual 2013COMMENT 5Headline5.7%5.5%STATSSA June Eastern Cape5.3%4.9%STATSSA June Tertiary Education9.7%8.8%STATSSA June 2013 EXCHANGE RATES 8Rand/US Dollar8.21%10.05%Ave till June Rand/Euro10.54%12.10%Ave till June Rand/Pound13.01%14.24%Ave till June 2013

15 BUDGET 2014 BUDGET TEMPLATES  Purpose of Templates  Tool to capture budget  Standardisation  Facilitates analyses and consolidation  Need for Improvements on existing templates  Insufficient ability for analyses and consolidation  Inconsistent naming of expenditure items  Slow and manual process  Features  Historical figures are pre-populated for comparison  Budget against GL Accounts  Option to enter annual or monthly figures (academic departments)  Monthly figures required from Support Divisions

16 BUDGET 2014 BUDGET SUBMISSIONS ACADEMIC DEPARTMENTS 1 INSTITUTES AND UNITS 2 STUDENT ACTIVITIES 3 SUPPORT DIVISIONS Expenditure Budget XXXForm E Running GrantForm B Financial forecast X Academic Capital Equipment Form DXXX Furniture & Equipment Form C Sign-offHOD & DeanDirector Dean of Students / Registrar Director 1. Includes Deans’ offices. 2. Includes Community Engagement, International Office, RUMEP, LAC, EBRU, CSD, ISEA, RUMEP, David Rabkin. 3. Includes SRC, Sports Administration, Rhodes Music Radio

17 BUDGET 2014 BUDGET 2014 TIME-TABLE DATESTIMEACTIVITYACCOUNTABLEVENUE 29-Jul-1309h00Budget Committee Meeting - Budget LaunchFinanceCouncil Chamber 29-Jul-1316h00Budget Packs made available via Finance website (TopList)Finance 30-Aug-1316h30Due date for return of Budget Requests from Budget Holders Departments / Divisions / Units 10-Oct-1309h00Budget Committee Meeting - 1st review of draft budgetAllCouncil Chamber 25-Oct-1314h15Fees Schedule presented to Senate for commentFinanceCouncil Chamber 29-Oct-1309h00Budget Committee Meeting - final review of draft budgetAllCouncil Chamber 14-Nov-1311h00Budget presented to F&GPFinanceCouncil Chamber 5-Dec-1310h30Budget presented to Council for approvalFinanceCouncil Chamber 12-Dec-1312h00Advise Departments/Divisions/Units of budget allocationsFinance 1-Apr-14 Spending against Academic Capital Grants CommenceDepartments

18 BUDGET 2014 NEXT STEPS Process Development Analyse feedback from Budget Process Survey Obtain further input from selected and key stakeholders Implement selected improvement solutions Co-ordination Develop Stakeholder matrix Refine budget time- table with buy-in from key input providers Do a budget launch Information Review and update Budget Pack (manual) Information System Modify Excel input templates Develop Excel budget model for improved consolidation

19 BUDGET 2014 CONTACT DETAILS PERSONPOSITION EXT. Desiree PhilipsonDirector: Geoff ErasmusManagement Ingrid Ford Assistant Financial Accountant Sonia Kivits Secretary to Director: Finance

20 BUDGET 2014 END


Download ppt "RHODES UNIVERSITY BUDGET 2014 LAUNCH PRESENTATION TO BUDGET COMMITTEE 29 July 2013 Developed and presented by Geoff Erasmus Management Accountant."

Similar presentations


Ads by Google