1. 2016-2017 INCENTIVE FUNDING UNIVERSITY OF UTAH Created on 2/17/2016

2. WHY CREATE A NEW MODEL FOR INCENTIVE FUNDING?

3. THE NEED FOR CHANGE Based on clear feedback from the colleges the prior SCH Budget model which had been in place for fifteen years, lacked clarity and allowed for unintended consequences. The Spring adjustment which was based on SCH changes, it did not add value to the academic year. The decision to HOLD HARMLESS was carefully implemented for both of the academic years 2015-2016 and 2016-2017. Additionally, BASE funding replaced incentive funds for advance graduate credit hours.

4. CHANGE TO MEET GOALS Based on feedback from the colleges, a change to our model was important in order to better align the resources to meet the goals: 1. Promote student success to transform lives 2. Develop and transfer new knowledge 3. Engage communities to improve health and quality of life 4. Ensure long-term viability of the university

5. The Budget Principles and Process Working Groups were tasked to define a budget process that would benefit our campus and position the institution for continued and expanded success in future years. The goal is to optimize resource allocation decisions, to enable innovation, and to encourage resource generation activities. You can read about the work that was done at this link: http://academic- affairs.utah.edu/about/academic-task-forces-and-initiatives/http://academic- affairs.utah.edu/about/academic-task-forces-and-initiatives/ Additionally, the Campus Budget Advisory Committee will review this and all budget decisions annually. OVERSIGHT

6. BUDGET COMPONENTS The Budget has five components: 79.9% is Base Funding 5.4% is from Senior Vice President of Academic Affairs support 10.7% is from Differential Tuition 4.0% is the Incentive Funding Model (this is a small component in the overall budget.) Strategic Funding Initiatives is a variable percentage

7. OBJECTIVES OF THE NEW INCENTIVE FUNDING  Align funding with strategic goal to promote student success to transform lives  Emphasize and encourage campus and legislative priorities  Increase stability, transparency and clarity  Provide greater predictability  Decrease competition and increase collaboration

8. HERE ARE THE POSSIBLE SOURCES OF FUNDING THAT CAN GO TO AN ACADEMIC COLLEGE GIFTS OR DONATIONS - FUND 6000 BASE, BENEFITS, VP COMMITMENTS, & NEW FUNDING - FUND 1001 GRANTS AND CONTRACTS - FUND 5000 REIMBURSED OVERHEAD - FUND 2500 ENDOWMENTS - FUNDS 8500, 8600, 8700 OPERATING - FUND 2000 WHAT SOURCE OF REVENUE WILL THE INCENTIVE FUNDING COME FROM? FUND 1001

9. WHAT PERCENTAGE OF AN ACADEMIC COLLEGES 1001 FUNDING IS THE INCENTIVE FUNDING? Answer: Incentive funding will vary from college to college. Important note: As represented below, the percentage is generally very low.

10. HOW DOES INCENTIVE FUNDING WORK?

11. POT OF MONEY $12,500,000 40% SCH PRODUCED 40% MAJORS DECLARED 20% DEGREES AWARDED TOTAL FUNDING DEDICATED TO INCENTIVE % FUNDING ALLOCATION BY METRIC $5,000,000 $2,500,000 STEP 1 *THIS IS ONLY AN EXAMPLE* STEP 1: ALLOCATE THE OVERALL FUNDING DEDICATED TO INCENTIVE FUNDING MULTIPLY TOTAL FUNDING BY % ALLOCATION PER METRIC SCH DEGREES MAJORS

12. 600,000 13,000 6,000 STEP 2 *THIS IS ONLY AN EXAMPLE* TOTAL SCH, MAJORS & DEGREES FOR ALL PARTICIPATING UNITS STEP 2: TOTAL ALL SCH, MAJORS AND DEGREES FOR PARTICIPATING COLLEGES AND CALCULATE PERCENTAGES CALCULATE PERCENT ALLOCATION PER COLLEGE SCH MAJORS DEGREES College 1 SCH Formula: 9,947 / 600,000 = 2% *Amounts are rounded here for simplicity, however they will not be rounded when the formula is calculated

13. SCH DEGREES TOTAL FOR EACH POT $5,000,000 MAJORS $5,000,000 $2,500,000 STEP 3 *THIS IS ONLY AN EXAMPLE* CALCULATE FUNDING FOR COLLEGE 1 STEP 3: CALCULATE AND DISTRIBUTE TOTAL FUNDING TO THE COLLEGE DEANS $5,000,000 x 2% = $100,000 $5,000,000 x 1% = $50,000 $2,500,000 x 2% = $50,000 DISTRIBUTION TO DEAN OF COLLEGE 1 $100,000 50,0000 + 50,0000 $200,000 SCH MAJORS DEGREES Transfer July 1st COLLEGE 1 DEAN’S OFFICE

14. HOW WERE THOSE NUMBERS DERIVED?

15. FORMULA DATA FACTS  Who determines the percentage split between SCH, Majors and Degree’s? Senior Vice President of Academic Affairs (SVPAA) with the input from the Deans, Academic Leaders, Financial Managers, and Campus Budget Advisory Committee determined the percentages. Those percentages can be adjusted on a year to year basis if necessary.  Who calculates the money to transfer and where do they get their data? The Budget Office calculates the totals to distribute and performs the funds transfer but they retrieve data from Institutional Analysis (IA) & Institutional Data Management & Visualization (IDMV).

16. FUNDING DATA FACTS  1001 Funds: The dollars that support this model are 1001 funds.  July 1 Transfer: The dollars will be transferred July 1.  One-Time Expenses: These dollars should not be used to pay for personnel or on-going expenses unless you pay a portion back into the benefit pool (contact Sandy Hughes at the Budget Office for more information).  Stability: The pot of money is stable, inasmuch as the SVPAA continues to support it from year to year. The overall dollar amount can increase depending on availability of new funding from the state or tuition.  College Level Only: The dollars will be calculated at a college level (not department level) and distributed to the deans of each participating college. The deans will determine further distribution within their colleges.  March True Up Eliminated: There will be no March true up as there has been in the past. What a college receives July 1 st will be final for the fiscal year.  Advanced Graduate (AG): AG dollars from the prior SCH model were excluded in this model and the AG funding should be included as part of the 16-17 base funding for a given college.

17. SCH DATA FACTS  SCH is a 2 year rolling average The 16-17 fiscal year calculation uses 13-14 & 14-15 SCH data. Therefore, the average between years 13- 14 & 14-15 are used.  End of Term for Summer, Fall and Spring Semester Beginning in fiscal year 15-16, end of term SCH data will be used for the 2 year rolling average.  Excludes AG SCH (7,000 Level Courses) The model excludes Advanced Graduate SCH, all other SCH are included, aka Lower Division, Upper Division & Basic Graduate. The funding for this portion was transferred to base for 16-17.

18. MAJOR DATA FACTS  Snapshot: Major data is a snapshot in time – end of spring semester for a fiscal year.  1 Major: Only 1 major counted – the Primary Declared Major (First major of record only).  No Minors or Double Majors: Currently does not count minors or double Majors.  Undergrads Only: The count only includes undergraduate majors, excludes all graduate majors.  Major Data: Data integrity should improve over time.

19. DEGREE DATA FACTS Includes All Degrees Awarded for All Students for a fiscal year  Doctorate  Masters  Bachelors

20. HOW CAN I SEE THE DATA BEHIND THE DOLLAR AMOUNT TRANSFERRED?

21. DATA VISIBILITY & VERIFICATION Incentive Funding Dashboard If you would like to see the numbers for your college and departments within a college, IDMV will be producing a dashboard that can display and export that data to Excel. This dashboard will be available to the deans office. OBIA Website The OBIA website has many resources that will help colleges view their SCH, major and degree data. Keep in mind that not all of these resources will be reconcilable back to incentive model data due to differences in snapshot dates and various other nuances as the information displayed in various reports serve different purposes.

22. MORE QUESTIONS? Feel free to contact the Budget Office Sandy Hughes, Director of Budget and Planning 801-581-6455 sandy.hughes@utah.edu sandy.hughes@utah.edu Ethan Hacker, Financial Analyst 801-587-3756 ethan.hacker@utah.edu ethan.hacker@utah.edu Sharayne Farnsworth, Financial Analyst 801-585-7956 sharayne.farnsworth@utah.edu sharayne.farnsworth@utah.edu