AUC: Catalyst for Change Planning and Budgeting for Integrated Planning Committee Monday, September 09, 2013

ActionTime Plan 1Planning kickoff meeting, distribution of planning guidelinesSep. 9, Unit-level deadline (version five)Sep. 22, School-level deadline (version four)Oct. 13, Deadline for submission of unit-level revised strategic plans FY Oct. 27, Deadline for submission of FY13 assessment reportsNov. 1, Area-level deadline (version three)Nov. 10, First view of the budget submission plan version 3 in BOT formatNov. 24, Distribution of the budget submission analysis/ exceptions review document to the CabinetDec. 8, Iterative budget committee reviewDec , Delivery of the enrollment and academic plansMid-Dec., Delivery of financial planMid-Jan., Board Executive Committee MeetingEarly Feb., In person meeting of Board Finance CommitteeEarly Feb., AUC Board Meeting, approval of all plans and budgets by BOTMar , Close of Fiscal YearJun. 30, Beginning of New Fiscal YearJul. 1, 2014

AUC’s Institutional Priorities Education for Citizenship and Service Research Reflecting Innovation and Impact Outreach Enhancing Engagement and Access Management with Sustainability and Integrity

BUDGET AND PLANNING PARAMETERS

AssumptionCurrent Financial Model FY14FY15FY16FY17 1. Forex Inflation6% 3. Revenue a. Tuition2.30% TBD b. Other revenue3% 4. Supplies & Services0% 5. Depreciation Expense3% 6. New Initiatives$2 M$1.7 M 7. Endowment Support5% of average 3 yrs value [value growth 7%] Operating Result ($Million) TBD

Overview of Key Issues Exchange Rate Operational Efficiency and Effectiveness Enrollment Management Human Resources Endowment Spending Fundraising Capital Budgets and Financing Debt Management

FY Fiscal year changed: July 1-June 30 starting July –FY 2015 is a 12-month budget (July 1, 2014-June 30, 2015) –Can re-allocate among months. Amounts are annual, so if not spent in month allocated, are still available in following months. Try to be as accurate in monthly budgeting as possible. For questions, contact Budget and Financial Planning OfficeBudget and Financial Planning Office

Supplies and Services Budget Controls  Previously: Control at the total budget level  SAP checks at the total available budget for the supplies and services not on a specific line item.  Beginning in FY15: Budget control will be placed on groups at high priority for cost control  Communication & Information, Utilities, Travel, Consulting and Professional Services  You cannot overspend these lines.  Permission from University Cabinet and the EVP required for transfers in and out of these lines.

Goal Setting Start with your current plan. What do you need to achieve plan? How can you shift resources to achieve goals? Need to focus on quality, effectiveness, improvements in efficiency of operations. Budget your plan, not plan your budget.

Planning Matrix New initiatives only in academic area. –Planning matrix closed to new initiatives, including new capital equipment –Self-funded activities allowed –Enter HR requirements, including tuition remission benefit No new staff requests May re-allocate within current operational budgets Keep capital replacements to a minimum

Planning Process 1.Refresh and review your unit’s goals 2.Brainstorm ways to strengthen current programs, areas that can be reduced or eliminated 3.ID opportunities to reallocate existing funds to support these initiatives 4.Adjust your budget in SAP as needed. Re-allocate among supplies and services lines as needed, taking the new budget controls into consideration. Do not increase overall amount. –12-month budget already loaded. Adjust monthly amounts as needed. 5.In planning matrix, only enter HR information and self-funded initiatives, except for academic area. –Don’t forget! Enter scholarship information for all faculty/staff using benefit 6.Submit your SAP budget and planning matrices according to timeline 7.Await approval

Planning Resources  Integrated Planning Committee  Institutional Research  Will provide data and technical assistance in planning and assessment as needed.  us if you need assistance or have questions.  AUC Planning and Budgeting Central website  Located under “About AUC”, “Governance and Administration”, “Policies” on AUC’s website.  Budget memo, planning assumptions, links to blog   All things budget:  us if you need assistance or have questions.

Questions? If you have any questions or need any assistance, contact us at: