1. UNIVERSITY OF MASSACHUSETTS BOSTON Budget & Financial Planning FY14 Budget & GOF Update June 2013 Sue Wolfe Assistant Vice Chancellor, Budget & Financial Planning

2. GOF Update ▸ Payroll, BuyWays, Pro-Card, FAST, and internal charge-back changes ready to go o All changes (except Payroll) effective July 1 o Payroll changes effective July 14 ▸ New speed types ▸ Employment paperwork ▸ Internal forms

3. State Budget & UMass Fee Setting Governor’s budget House Ways & Means House budget Senate Ways & Means Senate budget Conference Committee Governor’s actions Legislative overrides Final, approved budget Proposed fee changes System Office review Admin & Finance Committee recommendations Board of Trustees’ approval Jul ? Jun 19 Done!

4. Pending ▸ State support: $0 or $5.3 million ▸ Mandatory fee increase: 4.9% or 0.0% or something in between ▸ Institutional financial aid: $0 or $1.1 million or $1.9 million

5. Personnel (position mgmt) Operating costs (base budget) Strategic initiatives Request for new funding Non-discretionary FY14 Budget Process Revenue

6. Source: FY14 Budget Planning Summary Non-discretionary (draft) ($ in 000) ********

7. FY14 New Funding Requests (draft)

8. FY14 Capacity to Execute Issue ▸ putting a fence around money that isn’t spent ▸ vacancy vs new employee ▸ claim vs spend ▸ aspiration vs action plan Consequence ▸ little flexibility to respond to opportunities and unexpected events ▸ important requests not funded ▸ consistency of message

9. Revenue diversity Enrollment Student fees State support Grants (federal, state) Other (private, ESS, auxiliaries) Financial management Expenditure control Reporting Analysis Multi-year planning Asset base Physical infrastructure Deferred maintenance IT infrastructure Financial flexibility Endowment (investments) Reserves (net assets) Debt Growing Financial Strength

10. FY14 Goals ▸ Develop multi-yr financial plan with input from subject matter experts and stakeholders to ensure positive operating margin by FY16, debt service ratio not to exceed 10%, and financial cushion of no less than 20% of operating budget ▸ Identify and support best practices in the efficient and effective use of resources ▸ Provide reporting and analysis that informs and supports executive decisions ▸ Support a budget process and expenditure oversight that brings clarity to the use and allocation of resources ▸ Expand depth of financial management expertise throughout the University through expanded partnerships and professional development opportunities