1 University Financial Model PowerPoint Presentation

1 University Financial Model PowerPoint Presentation

2017-03-17 66K 66 0 0

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UPDATE. August 27, 2014. 2. University Financial Model. Issues in larger context awaiting resolution/clarification:. Likely significant cuts in state appropriations for FY14-15 and FY15-16 (will affect the availability of supplemental funding). ID: 525310

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Presentations text content in 1 University Financial Model

Slide1

1

University Financial Model

UPDATE

August 27, 2014

Slide2

2

University Financial Model

Issues in larger context awaiting resolution/clarification:

Likely significant cuts in state appropriations for FY14-15 and FY15-16 (will affect the availability of supplemental funding)

Model for Affordable Excellence to be considered by the Board of Visitors for approval in February 2015

Slide3

3

University Financial Model

How Do We Allocate Revenues?

Undergraduate tuition (regular session):

(net of financial aid and blind to in-state vs. out-of-state proportions) will be allocated via a blended formula that

includes

the credit hours

degree-seeking students (on-Grounds and off-Grounds) take

within a school (75

% weight)

and the schools with which students are affiliated (25

% weight).

Those undergraduate schools with differential tuitions or school-specific fees will receive that tuition (net of financial aid) or fee revenue directly, not through an allocation

formula.

Credit-hour

counts

are recorded at the end of October and the end of March for the regular academic session

The

proportion of

undergraduate financial aid

that is funded by undergraduate tuition is calculated on an annual basis, and both the regular-session and summer-session undergraduate tuition pools are reduced by this proportion before allocation to the schools.

Slide4

4

University Financial Model

How Do We Allocate Revenues?

Undergraduate tuition (summer session):

(net of financial aid and blind to in-state vs. out-of-state proportions) will be allocated via a blended formula that

includes

the credit hours students take within a school

(0.75 weight)

and the schools with which students are affiliated

(0.25 weight

).

For summer session, all

undergraduate student credit hours are counted (not just degree-seeking) and the summer session administrative costs of providing undergraduate courses are deducted from the tuition pool before allocation.

Slide5

5

University Financial Model

How Do We Allocate Revenues?

Study Abroad:

schools that sacrifice undergraduate tuition to encourage study abroad by their students will receive special consideration through supplemental funding, in accord with the spirit of the Cornerstone Plan. Specific arrangements will be included in agreements between deans and the relevant executive vice presidents.

Slide6

6

University Financial Model

How Do We Allocate Revenues?

Graduate

tuition

has been

allocated directly to the schools of enrollment with the school responsible for financial aid allocations

since

2013-14.

Both

summer session graduate tuition and tuition generated by enrollment in courses (at any time) in schools other than the graduate school in which the student is registered are subject to specific agreements between relevant

entities.

Grants and contracts

will be allocated to the

school or unit housing

the

research activity.

Facilities and administrative cost recoveries

will be allocated to the unit holding the research grant.

Restricted endowment distribution

will be allocated according to the donor’s wishes

.

Slide7

7

University Financial Model

How Do We Allocate Revenues?

The full 50-basis

point

endowment

administration fee

will be allocated to the

recipients of the previous 25-basis point distribution.

Schools must make good-faith efforts to report

available foundation

support

(cash and in-kind) to the extent possible during the budget process.

Other

revenue (gifts, sales, services, transfers, etc.

)

is allocated to the school that receives it.

ETF credits equal to direct expenditures in the same category

are included in school revenue totals.

Slide8

8

University Financial Model

How Do We Allocate Revenues?

Unrestricted

state funding, unrestricted gifts and unrestricted endowment distribution

will be retained by the President and deployed in ways that include the following:

To maintain a program that will provide supplemental funding

from

a central pool to ensure that all schools

and units sustain

excellence.

To invest in the University’s highest priorities as identified by the strategic planning process

.

Additional note:

The

University expects to provide supplemental funding in FY14-15 and FY15-16 sufficient

to

meet

expectations from the previous model of budgeting if adequate funding is available from all sources to provide it. This has been known previously as “hold-harmless” funding.

Slide9

9

University Financial Model

How Do We Allocate Central Service Costs?

General Concepts

Each central-cost category has its own usage-approximation formula

All allocated costs are net (only include costs not

covered by other funding

sources)

Regular UFM cost and allocation methodology will apply to Agency 207 entities included in the new Health Affairs financial/management framework (such as School of Medicine, School of Nursing, Claude Moore Health Sciences Library)

Central services will provide base levels of service to all entities in the UFM as detailed in service-level specifications (currently under development)

Slide10

10

University Financial Model

How Do We Allocate Central Service Costs?

Facilities Services

:

Costs

for entities within scope of the University Financial Model will computed as a

general

per-square-foot-occupied

rate

. UFM entities will be allocated that cost based on their total of assigned square feet and on their proportion of shared space (such as hallways and bathrooms).

Note that

utilities

will be

directly billed in the future

to units/schools for space they occupy (currently viewable as “memo” bills); until that billing is ready for implementation, utility costs will be included in the general facilities services allocations and allocated by the above formula.

Slide11

11

University Financial Model

How Do We Allocate Central Service Costs?

IT Services

:

Net costs allocated by this weighted-proportion formula: weighted

0.75

for headcount salaried employees (excludes Facilities and IT employees in step-down methodology)

+ weighted 0.25

for regular session

FTE

students

Excludes Communication Services costs, which are recovered through billing.

Slide12

12

University Financial Model

How Do We Allocate Central Service Costs?

HR

Services

:

Net costs allocated by proportion of headcount salaried employees

Slide13

13

University Financial Model

How Do We Allocate Central Service Costs?

Development (all University entities receiving gifts)

:

41.5 percent of net central costs allocated

for FY14-15

by

this formula

: proportion of

school/unit-specific

gifts greater than $100K for last four

years

58.5 percent of

net

central costs temporarily covered

for FY14-15

by

University

grant

Alumni Engagement (schools only)

:

41.5 percent of net central costs allocated

for FY14-15

by this formula

:

proportion

of

contactable

alumni for all

schools

58.5 percent of

net

central costs temporarily covered

for FY14-15

by University

grant

Note: both of these costs will be fully allocated beginning in FY15-16

Slide14

14

University Financial Model

How Do We Allocate Central Service Costs?

Central Library Services

:

Net costs allocated by

this formula: proportion of sum of annual

FTE regular session students

+ annual number of doctoral degrees + FTE instructional/research

faculty

Slide15

15

University Financial Model

How Do We Allocate Central Service Costs?

Research Support Services

:

Net costs allocated by

this

weighted-proportion formula

: weighted 0.5

for total

research

dollars (in millions)

+ weighted 0.5

for total

awards

Slide16

16

University Financial Model

How Do We Allocate Central Service Costs?

Student Services

:

Net costs allocated by proportion

of annual FTE

regular session students

Slide17

17

University Financial Model

How Do We Allocate Central Service Costs?

Undergraduate Admissions Services

:

Net costs allocated by proportion

of annual FTE

regular session undergraduate students

Slide18

18

University Financial Model

How Do We Allocate Central Service Costs?

Academic Support Services

:

Net costs allocated by

this formula: proportion of

(annual

FTE

instructional/research faculty

+ annual FTE

regular session students)

Slide19

19

University Financial Model

How Do We Allocate Central Service Costs?

Executive/Managerial Services

:

Net costs allocated by proportion

of

annual direct school expenditures


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