FY14 Strategic Planning & Resource Allocation Budget & Financial Planning F&A Advisory Group Jan 23, 2013

Strategic Planning & Resource Allocation planning to a budget or budgeting to a plan

Strategic Planning & Resource Allocation Planning VC area budgeting University resource allocation Ongoing financial mgmt

Planning  Develop common terminology and structure for reporting  Create shared vision of the future; what will we accomplish in FY14  Invest in broadening financial understanding  Establish common understanding of financial opportunities and constraints to bring expectations and requests in line with expected resources  Look for other ways to fund priorities (other than % reductions) develop budget framework request fee changes budget kick- off event set revenue and expense parameters

VC area budgeting  Additional budget considerations  optimize base budgets  capture items that are regularly occurring but not annual  include rollover expenditures  include differential/lab fee expenses  other items (NTT, faculty start-ups)  Submit new strategic requests and reduction opportunities within a project context (not as accounting detail in FAST) position management broaden understanding & engagement prepare budgets

University resource allocation  Dual focus on optimizing service levels vs strategic allocations  Look at long-term consequences of changes  Integrate analysis; develop new ways to inform decision-makers Provide analysis to inform decision-making Communication Budget approval

Ongoing financial management  conduct educational seminars  customize technical training  standardize reports and queries  share best practices Budget management Quarterly check ins Expanded education & training

System changes  Fund consolidation  Two bucket reporting (personnel, operating)  No TFA on GOF  Recharges in common accts  Expand Summit reporting PeopleSoft Finance FAST  Fund consolidation  Consistent level of detail (subsidiary)  Reduce changes  Strengthen internal reconciliation  Continue discussion on FAST as reporting tool

What doesn’t change  Potential fee constraints  Operating margin  Finance ratios System Office UMass Boston  Resource constraints  Budget & Finance business partner model  Policy around not spending or rolling-over personnel budgets  PS Finance budget rules

Strategic Planning & Resource Allocation Develop a realistic, sustainable vision of our future, worthy of our institution, its mission and goals and our time and effort.

Customer comments Context. Communication. Collaboration.

Systems Get better information; need of knowing (navigating) multiple systems Would like to use a single budget system Still feel the need to use shadow systems Training on reading reports from systems Want easier system for tracking vacancy savings Separate salary account Descriptive transaction details Accurate numbers loaded

Process Clarity and Changes Budget timeliness – more timely process (mentioned twice) Process complicated/cumbersome Too many budget layers/decisions – loss of control Need clear budget calendar and communication plan Decision process on approving expenditures Controls to help monitor budget—Need avenue to get budget office support in emergency

Communications & Education Budget memo too general – more specific in-depth information Want budget to be more descriptive: Personnel $______,Strategic Initiatives $______ Regular updates on fiscal health of university Need training for both existing and new staff

Carry forward & Other Policy/procedure on carry forward Clarify timing of earning RTF dollars Money set aside in department budgets for training (specialized and general)