1. Budget Model Presentation UBDC 14 February 2017

2. Guiding Questions for Today Status Checklist A Tale of Three Pictures…
Outline
Guiding Questions for Today
Status Checklist
A Tale of Three Pictures…
Revenue Assignment Examples
Cost Assignment Examples
Financial Statements
Key
Examples

3. Guiding Questions for Today
Does the new model make sense to you?
Rational/Logical/Reasonable?
Transparent?
Is the model workable for UW Oshkosh?
Pros/Cons?
Is the model workable for your area/unit?
Pros/Cons? (individual meetings)

4. Status Checklist Governance phalanx:
Task: Oversight committee and bylaws
Status: Drafted
Revenue phalanx
Task: Revenue assignment metrics
Cost phalanx
Task: Cost assignment metrics
Operating manual
Letter of transmittal
Status: In progress

5. Sources Overview Total Sources Tuition & State Subsidy (102)
Auxiliary Charges
Extension (104)
Cost Recovery Revenue
Federal Financial Aid
Program Revenue
General Purpose Revenue (GPR)
One-Year Grants (190)
Differential Tuition
Lawton Grants (406)
Other
Gifts, Grants,
Contracts
Minority/Disadvantaged (402)
Segregated Fees
GPR Debt Service (110)
Property Damage (999)
Graduate Financial Aid (403)
Utilities (109)

6. Unit Taxonomy Schematic
All Units
Usage-Based CUs
Revenue Units (RUs)
Cost Units
(CUs)
University Central CUs
Academic RUs (ARUs)
Self-Supporting RUs (SSRUs)

7. Total Sources Model Schematic Central Fund Central Support Tax
Revenue Units
University Central Indirect Costs
Direct Costs
Usage-Based Indirect Costs
Savings
Strategic Initiatives
Savings
Strategic Initiatives
Decentralized Side
Centralized Side

8. Revenue GPR-102 Assignment
GPR-102 is assigned to the Academic Revenue Units (Colleges) as follows:
β% share of SCH
(1-β)% share of graduate headcount

9. Revenue GPR-102 Assignment: Example
50/50 Split of GPR-102 = $100 Million
College
SCH % Share
Graduate % Share
GPR-102 Allocation A*
15%
21%
$18 million B
12%
22%
$17 million C
66%
43%
$54.5 million D 7%
14%
$10.5 million
*e.g., $50(0.15) + $50(0.21) = $18 million

10. Revenue Program Revenue Assignment
Program Revenue; e.g.,
Segregated Fees
Differential Tuition
Housing
Bookstore Proceeds
Gifts/Grants/Contracts
Assigned to unit where it is generated or for which it is ear-marked

11. Assign to unit where they are incurred
Costs Direct Costs
Examples:
salaries
fringe
travel
supplies & expenses
capital expenditures
Assign to unit where they are incurred

12. Costs Usage-Based Indirect Costs
(Indirect Costs = Overhead Costs)
Assign to Revenue Units (RUs) based on logical usage-based metrics; e.g.,
Facilities -- Assign cost by ft2% share
Human Resources -- Assign cost by FTE % share
Library -- Assign cost by SCH % share
Selected Cost Units (CUs) are assigned only to Academic RUs

13. Costs University Central Indirect Costs
(Indirect Costs = Overhead Costs)
All cost areas (CUs) that cannot be assigned via usage-based metric; e.g.,
Business Success Center
Chancellor's Office

14. Costs Simplified Example: Provost’s Office
Assume Budget = $1.5 Million
Academic RU
SCH % Share
Cost Assignment A*
15%
$225,ooo B
12%
$180,000 C
66%
$990,000 D 7%
$105,000
*e.g., (0.15)*$1.5 million = $225,000

15. Costs Simplified Example: HR
Assume Budget = $1 Million RU
FTE % Share
Cost Assignment A*
15%
$150,000 B
12%
$120,000 C
50%
$500,000 D 7%
$70,000
E (SSRU)
10%
$100,000
F (SSRU) 6%
$60,000
*e.g., (0.15)*$1 million = $150,000

16. Costs Simplified Example: Facilities
Assume Budget = $5 Million RU
Sq.Ft. % Share
Cost Assignment A*
15%
$750,000 B
14%
$700,000 C
48%
$2,400,000 D 7%
$350,000
E (SSRU)
12%
$600,000
F (SSRU) 4%
$200,000
*e.g., (0.15)*$5 million = $750,000

17. Costs Simplified Example: University Central
e.g., Chancellor’s Office
Assume budget = $900k
Assume tax base = gross GPR-102
Assume GPR-102 = $150 million
Tax = 0.6% on gross GPR-102
i.e., 0.006*($150 million) = $900k

18. Other Topics Financial Statements Standard across all 50 ± units
Publicly available under new model
Budget Request Process:
Timeline – when, who, and to whom
Budget Oversight/Advisory Committee
Mission Quality Indicators (MQIs)
Benchmarking service/funding levels
Service level agreements