Sheri Austin

Assistant Vice President,

University Budgets

Office of the Chief Financial Officer

Academic Administrators Seminar Series

October 2011

State of the Budget

State Funding

• Incremental Funding• Base Recurring Budget• Enrollment Growth• Special Legislative Initiatives• Administered Funds

University of Florida Funding Sources

State Appropriations $823.8MOther Funds $3,080.4M Total University Funds $3,904.2M

$823.8

$3,080.4

University of Florida Funding Sources

HSC Incidental Trust Funds; $15.53IFAS Incidental and Federal Funds; $18.16

Tuition; $300.33

Auxiliaries; $399.63

Misc Gifts and Grants, $560.55

Sponsored Research; $794.20

Local Funds; $568.44

State Appropriations, $523.44

Faculty Practice; $723.89

2011-12 State Appropriations

$823.8M

• Educational & General $561.8M• Health Science Center $134.1M• Institute for Food and

Agricultural Sciences $127.9M

2011-12 State Appropriations

$823.8M

• General Revenue $463.4M• Lottery $60.1M• Student Tuition $300.3M

State Appropriations Reductions

$210.0M• General Revenue

• 2007-08 $28.2M• 2008-09 $56.3M• 2009-10 $73.1M• 2010-11 $13.8M• 2011-12 $34.3M

• Lottery • 2007-08 $ 1.6M• 2008-09 $ 2.0M• 2009-10 $ .7M

State Appropriations Off-set to Reductions (Recurring)

$25.5M• General Revenue

• Restoration of Non-Recurring Reduction• E&G $2.2M

• Restoration of Non-Recurring Stimulus• E&G $6.5M• IFAS $9.0M• HSC $ .5M

• Lottery • Additional Lottery Funding

• E&G $5.6M• Restoration of Non-Recurring Stimulus

• E&G $1.7M

State Appropriations Off-set to Reductions (Non-Recurring)

$3.709M

• General Revenue• Restoration of Non-Recurring Funds

• E&G $ .009M

• Lottery• Restoration of Non-Recurring Funds

• E&G $ 3.700M

Tuition Increases

$117.1M• Tuition

• 2007-08 $ 8.4M• 2008-09 $17.1M• 2009-10 $31.2M• 2010-11 $30.7M• 2011-12 $29.7M

State Appropriations per FTE Student AAU Public Average vs. UF

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

$16,000

$18,000

$20,000

$22,000

$24,000

$26,000

$28,000

$30,000

$32,000

AAU

UF

AAU Peer Institution Undergraduate Tuition (Full-time, Resident)

Florida UNC Wisconsin UC, Berkeley Texas, A&M U of Texas Indiana Ohio State U of Michigan

U of Illinois Penn State0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

RCM Budget System

• Responsibility Center Management (RCM)• Decentralizes decisions and financial

authority/responsibility to academic leadership• Encourages academic units to take greater responsibility

for revenue generation and spending decisions– Promoting “entrepreneurial thinking”

• Supports growth even when government funding is limited

RCM Budget System

• Weight by College and by Level of Instruction• Lower, Upper, Grad I, Grad II, and Grad III

• Allocation of Revenue • State Appropriations and Tuition

• 70% based on SCH Taught by College• 30% based on SCH of the Major

• Other Revenue Earned by College/Responsibility Center

• Allocation of Support Unit Cost• Seven cost pools

RCM Budget System

• Support Unit Cost Pools• Information Technology• General Administration• HSC General Administration• Facilities• Student Administration• Library Services• Sponsored Project Administration

RCM Budget System

• Support Unit Cost Pools Distribution• Direct expenditures (excludes grant and scholarship funds)

• Information Technology• General Administration• HSC General Administration

• Weighted faculty, staff and/or student headcount• Student Administration• Library Services

• Weighted Square Footage• Facilities

• Grant expenditure• Sponsored Project Administration

RCM Budget System

• Workshopswww.cfo.ufl.edu/present.asp• Introduction to RCM

• RCM100 - now available online through HR

• RCM Nuts and Bolts• RCM200 – now available through HR• Presentations:

• http://cfo.ufl.edu/present/rcm+nuts+n+bolts+ilt+5-3-20101presentation.pdf

• Training Manual• http://cfo.ufl.edu/present/RCM%20Nuts%20%20Bolts%205-3-10.pdf

Budget and Fiscal Accountability

State Appropriation Budget Guidelines

• Internal Audit Review in 2007• State Appropriation Budget Guidelines

• Budgeting Process• Budget Allocation Documentation

• How colleges and departments receive funds

• Security• Budget Monitoring

Budget and Fiscal Accountability

• Policies and procedures - help ensure that management’s directives are identified and carried out.

• Create, maintain and make available to your faculty/staff a policy and procedures manual.

Budget and Fiscal Accountability

• Encourage faculty to work with appropriate administrative staff before purchasing items or booking travel to insure appropriate process takes place. There may be administrative requirements depending on the amount you are spending or why/where you are traveling

Budget and Fiscal Accountability

• If spending $5,000 or more, multiple quotes are required.

• If spending $75,000 or more, contact UF Purchasing to discuss the purchase. Public solicitations conducted by Purchasing are normally required at $75,000, depending on what is being purchased.

Internal ControlsSegregation of duties Job duties or responsibilities are divided among different people. One person should not be in charge of all fund types.

Authorizations, approvals and verifications Responsibility and accountability are linked. Duties may be

delegated, accountability cannot. Delegation of duties should not create conflict of interest. What is being delegated must be clearly defined and documented.

Internal ControlsAuthorizations, approvals and verifications

(continued)

• Signature authority should be limited to a “need to have” basis

• Managerial overrides should be captured and reviewed

• Budget and/or expenditure movement should require support documentation and dean/department chairs signature.

Fiscal Tools

• PeopleSoft Systems Include:

• Human Resources• Payroll• Financial• Student Financials • Enterprise Reporting

Reporting Tools• Enterprise Reporting

• Department Monthly Ledgers - allows fiscal review and reconciliation

• Reporting Cubes – allows managers to view information in our data warehouse

• Tuition Revenue Cube – allows managers to view revenue assessment, collections, and waivers

• Student Credit Hour Cube – allows managers to view fundable, non-fundable, and off-book credit hour data used in RCM calculations.

Reporting Cubes

Tuition Revenue Cube

Student Credit Hour Cube-coming soon

Additional Information Web-sites

University Budget Office – State Appropriation Guidelines:http://www.cfo.ufl.edu/budget/State-Appropriations-Budget-Guidelines.pdf

Finance and Accounting - Directives and Procedures:http://fa.ufl.edu/uco/handbook/handbook.asp?doc=1.4.2.3

Purchasing (and PCard):http://www.purchasing.ufl.edu

Travel (and Disbursements)http://www.fa.ufl.edu/uds/

Human Resources - Training Toolkits:http://www.hr.ufl.edu/training/myUFL/toolkits/default.asp

Questions