prium brussels 0809 managing finance

04/08/23 1managing finance & optimizing efficiency

PRIUMsite visit september 9-10, 2008

Managing finance & optimizing efficiencyNic Van Craen, director finance


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previous

Presentation about new funding model and its impact on the organisation as seen from the finance department


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agenda

Function of finance department Some keynumbers: annual accounts & budgetsources Introduction to the New government financing model Transition period by unchanged policy As-is situation between 2003-2006 2007: introduction of the new model and impact on university

policy To-be 2008-2013

Introduction of an Allocation model Use of combined integrated data = BI, need for ERP Chaning role of central administration

Risks


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Finance department

Global Mission: improvement of revenues, efficiënt & effectiveness costallocation en –centers

tools: Financial administration: central, legal, operations Financial management: policy Budgeting & forecasting: framework & steering of university policy and

its administration/execution How? responsabilities, 5yr and yearly plan in

accordance to strategic plan of university , link between academic policy and financial policy

External driver: new governement financing model


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Annual accounts (k €)revenues of the financial year 2007 2006

government funding 133.462 126.840institutional funding 83.308 81.140investments/renovation 3.426 3.308student services 2.021 1.980research BOF (performance) 11.861 11.514research other (competitive, project) 32.800 28.854others 46 44

international organisms 7.692 3.863private sector 7.739 6.998Rights, Royalties & Overhead 2.959 2.397tuituin & examinationfees 2.933 4.203financial revenues 13.410 4.901revenues of real property 4.212 3.855various 28.094 17.380

TOTALS 200.500 170.436

expenses of the financial year 2007 2006

staff 105.253 102.483operations, equipment & financials 61.891 53.695

TOTALS 167.144 156.178

surplus 33.356 14.258


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Introduction of a new financing model

First draft of model in 2004 Decree of 14/03/08 Impact starting on Budget 2008 Milestone 2013 – major change in

financing ( no more historical compensation)

Academisation 2013


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Institutional funding model


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Transition period


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As-is situation between 2003-2006:

“frozen” governement funding since 2000, fractional indexation + : fixed, certain and time to prepare - : increase of expenses > index of funding internal budgeting reform preparing change in funding

adapted Budgeting proces: zero based if relevant, central policy on the use of local reserves, projection on 5j-bases

Budgeting as steering-instrument in university policy instead of post-factum material

introduction of active electronic financial administration: use of web-application for ordering, management, reporting & budgeting starting at cost centre level

Imposed to realise a closely defined procedure Need for reallocation of staff in finance department Awareness of the cost centre responsables


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2007: introduction of the new model

Impact on university policy changing role of finance-department

from exclusively executing to expertise and consultancy

supported bij automated systems and BI

not only in this case but as a general organisational impact


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To-be 2008-2013

Introduction of a (new) allocation model – Characteristics:

– Governement Funding model = benchmark– Knowledge on the cost/funding of activities– Solidarity on university-level– Key to goalsetting on faculty/course and university level– Solide, rewarding goal-achievement

– Goals:– autonomy & responsability on faculty-level in accordance to the university-

strategy– Rewarding/sanctioning– Translation of university strategy by internal drivers

– Conditions:– Business intelligence– University management– Professionalism of central administration


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Central administration = overhead!

Contradiction? Increasinge importance of (central) administration while need to maximum

output on academic level

External conditions, justifying & legislation:– Need of Expertise and consulting from central to individual level– Automisation: raptools, campusmanagement, webapplications, avoid double input

Need of:– Strong resolute central administration– Internal audit– Full cost model (introduced by FP7; impact to total university, f.e. timesheeting)

Risks: – Resolute central administration individual academic goals – overkill in administration also at academic staff level, – dependancy on systems– Cost of decision-making– Automisation seems like transeferring work from central to individual level

Threats:– Change in mandate whilst staff isn’t prepared to new situation


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Any questions?

: [email protected] : +32 2 629 20 96