1. 521 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 INTRODUCING A NEW BUDGET MODEL

2. 522 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 EXISTING BUDGET MODEL UND’s budget approach has been historical and incremental. –Your next year’s budget for a unit would be what you got this year plus whatever adjustment was approved.

3. 523 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PROBLEMS WITH EXISTING MODEL –Does not take into account the change in revenues from year-to-year (tuition revenue driven by enrollment increases/decreases; levels of external grant funding change, etc.). –Does not make resources readily available for investment in strategic priorities.

4. 524 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 NEW BUDGET MODEL We need a new budget model that will help: –Allow us to focus on strategic priorities –Promote transparency –Improve efficiency –Improve quality of service provided by UND –Allow growth initiatives to flourish

5. 525 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 WHAT DID WE DO? –Huron Consulting Group was hired to help UND assess, evaluate, and develop a new budget model. –Steering Committee composed of faculty, staff, and administrators was formed to work collaboratively with Huron. –Numerous interviews were conducted with the UND community during the process. –The collaborative efforts resulted in a resource allocation model, customized to UND’s values and culture.

6. 526 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 LET’S GIVE IT A NAME MIRA Model for Incentive-based Resource Allocation MIRA is a model by which resources are allocated to Primary Units; each unit (college, auxiliary) will develop a distribution plan to adequately support their units and personnel in alignment with college and/or unit goals and priorities.

7. 527 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 DEFINITION OF MIRA ELEMENTS Primary Unit – –Unit whose activities generate revenue (e.g., College of Business and Public Administration, Housing & Dining Services, etc.) Support Unit – –Unit whose purpose is to provide services for Primary Units (e.g., Student Affairs, Facilities, etc.)

8. 528 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 Q&A

9. 529 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS

10. 5210 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNITS Academic (e.g. Colleges and Schools) Auxiliaries Centers & Institutes

11. 5211 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 AUXILIARIES, CENTERS & INSTITUTES President –Athletics Provost –Office of Extended Learning –EERC –Human Nutrition Center –Technology Accelerator

12. 5212 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 AUXILIARIES, CENTERS & INSTITUTES Finance & Operations –Chester Fritz Auditorium –Golf Course –Parking Services –Environmental Training Institute Student Affairs –Housing & Dining Services –Memorial Union –Student Health Services –Wellness Center –Children’s Learning Center

13. 5213 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS ELEMENTS

14. 5214 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNITS REVENUES Direct Revenue –Graduate Tuition (for Academic Units) –Grants and Contracts –Indirect Cost Recovery –Non-mandatory student fees –Endowment income –Gifts –Other sales and services

15. 5215 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNITS REVENUES Allocated revenue –Undergraduate Tuition (for Academic Units) –State appropriations –Mandatory student fees Under the current budget model, these revenues are collected centrally and then are allocated to Primary Units by central administration. Under MIRA, these revenues will flow to the Primary Units according to a defined formula.

16. 5216 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNITS EXPENSES Direct expenses: salaries, fringe benefits, office supplies, other costs of running the unit Support Unit allocations: costs paid by Primary Units for their proportional share of services provided by the Support Units Participation fee: fees paid by Primary Units to fund/form a Subvention Fund

17. 5217 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUBVENTION FUND Defined: A centrally-held pool of dollars funded by the Participation Fee. The fund has two primary purposes: –Subsidize some Primary Units guided by institutional mission, value, and goals –Fund strategically important initiatives/priorities

18. 5218 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT BUDGET CYCLE Budget Book UND leadership summarizes current year financial plan and strategic priorities. Strategic Review Primary Units review prior year performance and discuss improvement plans. Budget Development Primary Unit develops financial plan based on latest analysis and central administration guidance Budget Presentation Primary Unit submits next year plan, 3-year outlook, and subvention requests, if applicable. Budget Refinement Primary Units update plan based on presentation outcomes, trends, and central administration guidance. August October - November December - February March - April April - May

19. 5219 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS BUDGET CYCLE - STRATEGIC REVEIW

20. 5220 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT STRATEGIC REVIEW During October and November, the Provost Office and Central Budget Office will co-host a session with each Primary Unit to review its prior year performance and to discuss future plans.  These presentations:  Stimulates Primary Unit to assess internal policies, processes, and priorities to identify opportunities to improve outcomes. Better outcomes often translate to increased revenue.  Provides an opportunity for Primary Unit to lead an evidence-based conversation with central leadership on issues that are important to the unit.  As a result of these sessions, central leadership should better understand how it can support Primary Units through improved Support Unit service levels, enhanced tools, and new institutional policies and programs.

21. 5221 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT STRATEGIC REVIEW Present self-assessment of unit operations and how it is impacting strategy and tactics. Possible supporting documents: –SWOT analysis –If you have student or constituent satisfaction survey results or other methods of assessing operations, present the highlights. Discuss prior year performance and how it contributes to UND’s mission and strategic priorities. Possible supporting documents: –Statement of activities and metric dashboard. –In future years, the impact of any prior year subvention allocation would be presented. 21

22. 5222 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT STRATEGIC REVIEW Outline future performance plan, including needs from central leadership. Possible supporting documents: –Personnel planning, professional development, workload, etc. –Proposed policies, program, etc. Present budget update. –Financial highlights of previous fiscal year –Based on Fall enrollment or current revenue posting, status of current fiscal year

23. 5223 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS BUDGET CYCLE – BUDGET DEVELOPMENT

24. 5224 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT BUDGET DEVELOPMENT From December through February, Primary Units are working closely with the Provost’s Office and Central Budget Office to develop initial budget plans. Central administration becomes business partners to help units develop plans and prepare for the budget presentations Provost’s Office collaborates with academic units to integrate academic planning with financial management. In January, Support Unit budgets will be finalized so those costs can be factored into the Primary Unit plans. While planning for next year, Primary Units should develop plans to address any anticipated revenue shortfalls or expense overruns for the current year.

25. 5225 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS BUDGET CYCLE – BUDGET PRESENTATION

26. 5226 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT BUDGET PRESENTATION During March and April, the Provost Office and Central Budget Office will co-host a budget presentation with each Primary Unit to discuss its multi-year financial plans.  Primary unit explains how strategic goals and programmatic activities are quantified in the budget.  Builds on conversations from the strategic review session, including follow up on any action items.  Explains any significant variations between revenue or expense forecast and historical trends.  Comments on satisfaction with Support Unit service for the Support Unit allocation that is assessed.

27. 5227 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT BUDGET PRESENTATION Describe current year performance and how it’s impacting strategy and tactics. Possible supporting documents: –Statement of activities (current year forecast) –Metric dashboard (prior calendar year actuals) Outline multi-year financial plan and how it contributes to UND’s mission and strategic priorities. Possible supporting documents: –Statement of activities for next 3-5 years. –Performance targets for next 3-5 years. Submit request for subvention funding and how it aligns with UND strategic priorities. 27

28. 5228 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation PRIMARY UNITS BUDGET CYCLE – BUDGET REFINEMENT

29. 5229 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PRIMARY UNIT BUDGET REFINEMENT During April and May, each Primary Unit refines its financial plans to incorporate updated information in the following areas:  Unit commitments and other outcomes from the budget presentation.  Updated unit analysis on direct revenue and direct expense forecasts.  Latest central guidance on undergraduate tuition, undergraduate financial aid, general state appropriations, participation fee rate, indirect cost recovery, and any “budget balancing” exercises.  SBHE approvals on tuition, room, board, and fees for next year.  Final adjustments, if any, to Support Unit (cost pool) allocations to Primary Units.  Presidential decisions on subvention fund and deferred maintenance allocations.

30. 5230 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 TOOLS FOR PRIMARY UNITS Oracle Planning and Budgeting Cloud Services (PBCS) –Provides historical model statements based on actual revenues and expenses that can be use for planning purposes –Allows for management of planning versions and ensures that all units are working with up-to-date and accurate numbers –Provides ability for units to create “what if” scenarios for up to three different budget options –Allows units the ability to enter direct revenue estimates, direct expense estimates, and see resulting model statement. –Ability to forecast up to five years beyond current plan year. Central Budget Office

31. 5231 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 Q&A

32. 5232 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA Model for Incentive-based Resource Allocation SUPPORT UNITS

33. 5233 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MAIN MIRA SUPPORT UNIT/COST POOLS Nine Main Cost Pools: President Provost Institutional Services Finance Operations Research Facilities Management Student Affairs University & Public Affairs

34. 5234 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA SUPPORT UNIT/COST POOLS: President Provost –Academic Affairs –Diversity & Inclusion –Graduate Studies –Honors Program –International Programs –Office of Extended Learning – Support –Registrar Institutional Services –CIO (includes Telecom, Center for Instructional Learning Technology) –Institutional Research –Library Finance –Budget Office –Controller –VP for Finance & Operations

35. 5235 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA SUPPORT UNITS (CONTINUED) Operations –Affirmative Action/Equal Opportunity –Human Resources & Payroll Services –Printing & Mailing Services –Public Safety –Transportation Research –EPSCoR –Grant & Contract Administration –VP for Research Facilities Student Affairs –Enrollment Services –Dean of Students –Health & Wellness –Student Academic Services –VP of Student Affairs University & Public Affairs

36. 5236 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 WHAT STAYS THE SAME UNDER MIRA FOR SUPPORT UNITS? Support Unit budgets will remain, for the most part, incremental. Support Units will still monitor a fixed budget.

37. 5237 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 WHAT IS DIFFERENT UNDER MIRA FOR SUPPORT UNITS? Budget cycle is earlier moving from April to October. Focus on value added services and efficient delivery of services. Support Unit costs are allocated to the Primary Units. Support units give presentation to Support Unit Allocation Committee.

38. 5238 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT/COST POOLS ALLOCATION Cost Pools with their basis for allocation to the Primary Units: President - total expenditures Provost - student FTE Institutional Services - total headcount Finance - total expenditures Operations - total headcount Research - sponsored revenue Facilities Management - square footage Student Affairs - student headcount University & Public Affairs - total headcount

39. 5239 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT ALLOCATION COMMITTEE 39 Membership  Chaired by Vice President for Finance & Operations. Central Budget Office serves as staff liaisons.  Reviews Support Unit’s budget proposal.  Offers suggestions for performance improvement.  Submits executive summary of unified Support Unit budget recommendation to Executive Budget Committee. During October and November, the Support Unit Allocation Committee meets with Support Unit leadership to review each unit’s budget proposal, and to promote service effectiveness and efficiency. Responsibilities

40. 5240 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT ALLOCATION PRESENTATION During October and November, the Central Budget Office will coordinate Support Unit presentations for the Support Unit Allocation Committee. This session with each Support Unit will review its prior year performance, current year operations, and the next year budget request. These presentations:  Provides an opportunity for dialog between the Support Units and Primary Units.  Provides an opportunity for Support Units to lead an evidence-based conversation with central leadership on issues that are important to the unit. The Central Budget Office will send out guidelines for Support Units to use in developing their presentation. These guidelines will indicate if more than one budget scenario is required, e.g. flat budget, optimal budget, 5% decrease budget, etc.

41. 5241 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT BASIC ALLOCATION PRESENTATION Statement of service, objectives, and programs: –Organizational Chart(s) –List of services provided by your unit –SWOT analysis –Discuss prior year performance, including constituent survey results, metric dashboards, benchmark data, etc. EAB (Education Advisory Board) has examples. –For any proposed increase to the base budget, provide justification for service changes and resulting costs. Separate any request for new funding into one- time and recurring dollars. 41

42. 5242 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT BASIC ALLOCATION PRESENTATION (CONTINUED) Prepare an internal review of each program. The goal of this requirement is to communicate the unit’s strategic plan, centrality (or essential relationship) to the University mission and value of services offered. Gather baseline data to document the current general assignment of responsibilities, organizational structure, and staffing plan, and the amount of resources in terms of dollars and staff FTE’s devoted to the program. List mission-critical programs and services. Supply benchmarks or indicators for evaluating the quality of service delivery and procedures for regular evaluation.

43. 5243 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT BASIC ALLOCATION PRESENTATION (CONTINUED) Review policies and procedures with the objective of eliminating low value added activities and enhancing value where appropriate. Identify the unit’s strengths and note areas for improvement in the future. Recommend strategies for overcoming any barriers and/or constraints that may be impediments to realizing savings.

44. 5244 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 ARE SUPPORT UNITS ELIGIBLE FOR SUBVENTION? No – –Support units focus on efficiency and not the generation of revenue. However – –They can make requests for additional funding through their support unit presentations.

45. 5245 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 TOOLS FOR SUPPORT UNITS One-on-one or group brainstorming sessions Presentation Template Development Dashboard Assistance

46. 5246 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 SUPPORT UNIT TIMELINE –Early Fall 2016 Develop FY18 budget plan that aligns with 5 Institutional Goals –Fall 2016 (Oct/Nov) Present FY18 budget plan to Support Unit Allocation committee –December 2016 Support Unit Allocation committee submits its budget recommendations to Executive Budget Committee. Executive Budget Committee submits its recommendation to President & Executive Council. –January 2017 Support Unit budgets are approved (contingent on State Board guidelines) for allocation to the Primary Units

47. 5247 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 Q&A

48. 5248 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 PROCESS MAP 48 Central leadership, Primary Units, Support Units, and several advisory committees work in close coordination to optimize the use of resources to advance UND’s mission and strategic priorities.

49. 5249 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 MIRA NEXT STEPS Communication, Communication, Communication –Feedback Communication has to be two ways. We need feedback so we can continually improve the process. –Presentations –Website –Training Sessions Tool Development Process Development and Refinement – still in process

50. 5250 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 DRAFT INSTITUTIONAL TIMELINE –FY15 Build infrastructure, communicate, and train –FY16 Parallel Year UND will operate under the old budget model and Primary Units will be able to see what funding would be like operating under MIRA. Education and training continue Transition planning –FY17 MIRA goes into effect with “hold harmless,” i.e., units will be somewhat protected from large budget impacts. –FY18 MIRA is fully operational (tentative)

51. 5251 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 IN SUMMARY Changing to MIRA will – –Allow us to focus on strategic priorities –Promote transparency –Improve efficiency –Improve quality of service provided by UND –Allow growth initiatives to flourish

52. 52 MIRA Strategic Planning & Resource Allocation “MIRA Implementation Presentation”  July 2015 Q&A