1. Sheri Austin Assistant Vice President, University Budgets Office of the Chief Financial Officer Academic Administrators Seminar Series October 2011

2. State of the Budget

3. State Funding Incremental Funding Base Recurring Budget Enrollment Growth Special Legislative Initiatives Administered Funds

4. University of Florida Funding Sources State Appropriations $823.8M OtherFunds $3,080.4M Total University Funds $3,904.2M

5. University of Florida Funding Sources

6. 2011-12 State Appropriations $823.8M Educational & General$561.8M Health Science Center$134.1M Institute for Food and Agricultural Sciences$127.9M

7. 2011-12 State Appropriations $823.8M General Revenue$463.4M Lottery $60.1M Student Tuition$300.3M

8. State Appropriations Reductions $210.0M General Revenue 2007-08$28.2M 2008-09$56.3M 2009-10$73.1M 2010-11$13.8M 2011-12$34.3M Lottery 2007-08$ 1.6M 2008-09$ 2.0M 2009-10$.7M

9. State Appropriations Off-set to Reductions (Recurring) $25.5M General Revenue Restoration of Non-Recurring Reduction E&G$2.2M Restoration of Non-Recurring Stimulus E&G$6.5M IFAS$9.0M HSC$.5M Lottery Additional Lottery Funding E&G$5.6M Restoration of Non-Recurring Stimulus E&G$1.7M

10. State Appropriations Off-set to Reductions (Non-Recurring) $3.709M General Revenue Restoration of Non-Recurring Funds E&G$.009M Lottery Restoration of Non-Recurring Funds E&G$ 3.700M

11. Tuition Increases $117.1M Tuition 2007-08$ 8.4M 2008-09$17.1M 2009-10$31.2M 2010-11$30.7M 2011-12$29.7M

12. State Appropriations per FTE Student AAU Public Average vs. UF

13. AAU Peer Institution Undergraduate Tuition (Full-time, Resident)

14. RCM Budget System Responsibility Center Management (RCM) Decentralizes decisions and financial authority/responsibility to academic leadership Encourages academic units to take greater responsibility for revenue generation and spending decisions – –Promoting “entrepreneurial thinking” Supports growth even when government funding is limited

15. RCM Budget System Weight by College and by Level of Instruction Lower, Upper, Grad I, Grad II, and Grad III Allocation of Revenue State Appropriations and Tuition 70% based on SCH Taught by College 30% based on SCH of the Major Other Revenue Earned by College/Responsibility Center Allocation of Support Unit Cost Seven cost pools

16. RCM Budget System Support Unit Cost Pools Information Technology General Administration HSC General Administration Facilities Student Administration Library Services Sponsored Project Administration

17. RCM Budget System Support Unit Cost Pools Distribution Direct expenditures ( excludes grant and scholarship funds ) Information Technology General Administration HSC General Administration Weighted faculty, staff and/or student headcount Student Administration Library Services Weighted Square Footage Facilities Grant expenditure Sponsored Project Administration

18. RCM Budget System Workshops www.cfo.ufl.edu/present.asp Introduction to RCM RCM100 - now available online through HR RCM Nuts and Bolts RCM200 – now available through HR Presentations: http://cfo.ufl.edu/present/rcm+nuts+n+bolts+ilt+5-3-20101presentation.pdf Training Manual http://cfo.ufl.edu/present/RCM%20Nuts%20%20Bolts%205-3-10.pdf

19. Budget and Fiscal Accountability

20. State Appropriation Budget Guidelines Internal Audit Review in 2007 State Appropriation Budget Guidelines Budgeting Process Budget Allocation Documentation How colleges and departments receive funds Security Budget Monitoring

21. Budget and Fiscal Accountability Policies and procedures - help ensure that management’s directives are identified and carried out. Create, maintain and make available to your faculty/staff a policy and procedures manual.

22. Budget and Fiscal Accountability Encourage faculty to work with appropriate administrative staff before purchasing items or booking travel to insure appropriate process takes place. There may be administrative requirements depending on the amount you are spending or why/where you are traveling

23. Budget and Fiscal Accountability If spending $5,000 or more, multiple quotes are required. If spending $75,000 or more, contact UF Purchasing to discuss the purchase. Public solicitations conducted by Purchasing are normally required at $75,000, depending on what is being purchased.

24. Internal Controls Segregation of duties Job duties or responsibilities are divided among different people. One person should not be in charge of all fund types. Authorizations, approvals and verifications Responsibility and accountability are linked. Duties may be delegated, accountability cannot. Delegation of duties should not create conflict of interest. What is being delegated must be clearly defined and documented.

25. Internal Controls Authorizations, approvals and verifications (continued) Signature authority should be limited to a “need to have” basis Managerial overrides should be captured and reviewed Budget and/or expenditure movement should require support documentation and dean/department chairs signature.

26. Fiscal Tools PeopleSoft Systems Include: Human Resources Payroll Financial Student Financials Enterprise Reporting

27. Reporting Tools Enterprise Reporting Department Monthly Ledgers - allows fiscal review and reconciliation Reporting Cubes – allows managers to view information in our data warehouse Tuition Revenue Cube – allows managers to view revenue assessment, collections, and waivers Student Credit Hour Cube – allows managers to view fundable, non-fundable, and off-book credit hour data used in RCM calculations.

28. Reporting Cubes

29. Tuition Revenue Cube

30. Student Credit Hour Cube-coming soon

31. Additional Information Web-sites University Budget Office – State Appropriation Guidelines: http://www.cfo.ufl.edu/budget/State-Appropriations-Budget-Guidelines.pdf Finance and Accounting - Directives and Procedures: http://fa.ufl.edu/uco/handbook/handbook.asp?doc=1.4.2.3 Purchasing (and PCard): http://www.purchasing.ufl.edu Travel (and Disbursements) http://www.fa.ufl.edu/uds/ Human Resources - Training Toolkits: http://www.hr.ufl.edu/training/myUFL/toolkits/default.asp

32. Questions