Comprehensive Financial Management Structure Strategic Integration Target 2 Board of Trustees Strategic Outcomes July 2014

Trustees Strategic Outcomes Strategic Integration Target 2 “Develop and implement a comprehensive financial management structure for the entire System that enhances transparency, enables appropriate fiscal control, and advances comprehensive intra-system collaboration. New model review September 2014; Implementation in FY15.” This presentation explores the existing governance for financial affairs and the options available for implementing Strategic Integration Target 2. Each option has multiple variations.

Governance of Financial Affairs Charter of the University of Maine System Private & Special Laws 1985, chapter 532 Maine law Title 20-A MRSA, chapter 411 Board Policy Bylaws of the Board of Trustees – Section 103 Governance & Legal Affairs – Section 207 Financial Affairs – Section 700

Spectrum of Change 1: Policy Only Approach 2: Unified Finance Only 3: Unified Finance & Administration with Regional COOs 4: Unified Finance & Administration – Full Integration

Policy Only Approach Current law & policy define role of VCFA/Treasurer Develop unified operating and capital budgets Oversight of financial resources and assets Authority to draw funds and commit resources Create dotted lines from campus CFOs to VCFA Strengthen internal controls Develop policy to govern movement of funds Note: This strengthened policy approach applies to all options.

Unified Finance Only Vice Chancellor Finance & Administration CIOCHRO CFO Budget & Financial Analysis Bursar & Student Financial Systems Controller System Director of Facilities & General Services General Counsel Clerk of the Board

Unified Finance Only Create a System CFO with primary responsibility for financial oversight and unified budget development for all seven universities. Consolidate functions related to: budget & financial analysis bursar & student financial systems* Create dotted lines from campus CFOs to System CFO *Note: Controller function already consolidated.

Unified Finance & Admin with Regional COOs Vice Chancellor Finance & Administration CIOCHRO CFO & Associate Vice Chancellor Budget & Financial Analysis ControllerRegional COO System Director of Facilities & General Services General Counsel Clerk of the Board

Unified Finance & Admin with Regional COOs Create a System CFO/Associate Vice Chancellor primary responsibility for financial oversight and unified budget development for all seven universities Secondary responsibility for coordination of administrative services for all seven universities. Consolidate functions related to budget & financial analysis.* Replace 7 campus CFOs with 3 to 4 regional chief operating officers reporting to the System CFO/AVC with responsibility for one or more campuses. *Note: Controller function already consolidated

Unified Finance & Admin Full Integration Vice Chancellor Chief Operating Officer Chief Information Officer Chief Facilities & General Services Officer Facilities & Capital Management Facilities Maintenance & Operations Risk Management Procurement Services Chief Human Resources Officer General CounselClerk of the Board Chief Financial Officer Budget & Financial Analysis Bursar & Student Financial Systems Auxiliary ServicesController

Unified Finance & Admin Full Integration Achieve full financial and administrative integration serving both Strategic Integration Target 2 (comprehensive financial management structure) & Target 3 (comprehensive administrative plan/reduced administrative cost) Vice Chancellor position renamed COO Create a System CFO with primary responsibility for financial oversight and unified budget development for all seven universities. Consolidate functions related to: budget & financial analysis bursar & student financial systems auxiliary services* *Note: Controller function already consolidated

Unified Finance & Admin Full Integration Consolidate all administrative services by function and locate all services on a campus to make best use of space* All facilities maintenance & operations and capital management functions under the Chief Facilities & General Services Officer All human resources functions under the Chief Human Resources Officer All other administrative services in Information Technology, Facilities & General Services, and Human Resources have already been consolidated. *Note – eliminate System Office at 16 Central Street, Bangor

Process Continued discussion - campus Presidents & CFOs Presentation of plan at BOT Meeting Sep Plan available for comment on Sep 22 on ThinkMissionExcellence.Maine.edu Comment period ends Oct 10 Final plan presented at BOT Meeting Nov 16-17