1. Budgeting Process University of Applied Science FH Campus Wien
Online Coaching – Course material
Horst Rode/CFO FH Campus Wien

2. I. BUDGET PROCESS

3. Budgeting Process Internal Structure
Academic Units
departments
study programs
specialist areas
Support units
Academic University Development, Corporate Communications, Finance, Gender & Diversity Management, Human Resources, Infrastructure Management, International Office, IT-Services, Library, Online Services, Teaching Support Center
Management/Administration
Board of Management - responsible for the operational acitivites
Rector's Office - responsible for all academic aspects
Executive department (Legal Office, Quality Management, Research Service, Fundraising)

4. Budgeting Process Principles
The sources of money are
Ministry of Science, Research and Economy
various governmental bodies
Third-party funding for R&D
Academic units get (all) the funding
Support units and administration are funded by a management fee paid by the Academic units
Buttom-Up process as well Top-Down elements
Full Cost Model
cost calculation method in which all costs of an organisation are allocated in accordance with the matching principle to the cost object (e.g. to a project) irrespective of the funding source

5. Organigram FH CampUS WIEN

6. Budgeting process funding sources - fiscal year 2012/13
13 %
59 %
5 %
6 %
17 %
Third party funding
Vienna Hospital Association
Federal Chancellery and Ministry of Finance
Tuition fees and student contributions
Federal Ministry of Science, Research and Economy (BMWFW)
65% of FHCW‘s funding sources stem from „classic“ standard per capita cost modell
Financing degree programmes within health sector
Per capita standard cost modell
Research grants

7. Budgeting process strategic & operative budget
Common Values, Code of Conduct, Quality Politics, Mission, Vision
Strategy
Goals & Measures for Departments for the academic year
Goals & Measures on unit Level
Budget
Annual employee appraisals
strategic
Budget multiannual
operative
budget
annual

8. BUDGET PROCESS Budget/fiscal year
Core Budget Negotiation

9. Budgeting process bottom-up procedure

10. Budgeting Process Operative Budget @ FH Campus Wien
Cost center leaders prepare budget proposal
- Formulating the proposal by integrating strategic goals and measures
- Cost of staff, Personnel costs and indirect costs are set by management
- Study Program Manager: Allocation of personnel costs on administration, teaching, research
Management budget talks
- Cost center leaders presents units budget to the HE management - First we do budgets for support services and
Management/administration units, than the budget of academic units
Final approval by Executive Committee
- Budget negotiations lasting approx. 2 months budget negotiations - lasting two months until
the figures reach the level that can be accepted by our Executive Committee - fiscal year start on the 1st of August

11. Budgeting Process Operative Budget - Study Program

12. II. FULL COST MODEL

13. Financial Management Full Cost Model - Why?
To enhance financial sustainability
To increase transparency
To strengthen the position of universities
To support strategic management
Source: Thomas Estermann /European University Association

14. Financial Management Full Cost Model – How?
Leadership commitment
the commitment of the institutional leadership and management is key to the successful implementation of full costing.
A coordinated approach
a coordinated approach including all relevant stakeholders at institutional level as well as cooperation between universities, public authorities and funding bodies at system level can facilitate the implementation process and increase efficiency
Common principles – different models
there is not just one way to implement full costing in universities. Each university has to decide on a methodology that suits its needs depending on its institutional pro le and structure
Funding rules
funding rules can be an important driver to foster full costing implementation and therefore national and European public funders should accept cost claims and reimbursement based on full costing methodologies
Source: Thomas Estermann /European University Association

15. Financial Management Full Cost Model – Benefits
Source: Thomas Estermann /European University Association

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Horst Rode