Modernizing Budget Development at NCCU for Strategic Resource Alignment
NCCU implemented changes in its budget process to improve engagement, align with strategic priorities, and utilize technology for better resource allocation. The shift to Anaplan for the All Funds Budget Initiative enables enhanced service levels, cost structures, and reallocation of resources to meet future needs.
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All Funds Budget Board of Trustees April 11, 2023 1
All Funds Budget Initiative UNC System Background: Budgeting is a common best practice that supports strategic resource allocation in support of institutional strategic priorities. Historically, the primary revenue streams for the UNC System were state appropriations and tuition, which are both part of the state General Fund and governed by state budgeting processes. Over time, Institutional Trust Funds (non state funds), have grown significantly (now half of UNC System revenues) and are not included as part of a formal budgeting process with state funds. 2
NCCU Budget Process Historical View Old process was cumbersome and manually executed Utilized Excel spreadsheets (30+ count) Labor intensive required sending spreadsheets back and forth Budget was not always aligned with Student Credit Hour production, reflective of growth or decline of academic programs often based on historical allocations Budget was centralized with limited campus input for General funds; not always aligned to support strategic plan and goals Overall budget had to be manually consolidated into one spreadsheet to be loaded into Banner 3
NCCU Budget Development Reasons for Change What prompted the change? In addition to a mandate from UNC BOG, NCCU (specifically the Budget Office) was already exploring ways to make the budget process more engaging and in line with strategic priorities; also to add technology to streamline the process Desired a solution that allows for simultaneous use and updates; end users can see in real time how projections match to actuals Creates a mechanism for departments to participate in the budgetary process; no longer can any department claim not to know what is going on and where we are Budget needs to be based on SCH production so that the University can easily move to realign resources with growth areas or targeted initiatives 4
Budget Development Reasons for Change (cont) In summary, the move to Anaplan (technology solution) in development of the annual All Funds Budget Initiative achieves the following: Allow for greater levels of service and support for all stakeholders Reset cost structures to support future need and growth Reallocation of dollars to align with necessary expenditures Refocus allocation of time, space, and dollars 5
Role of the Board - Action Beginning with FY 22, the Board of Trustees shall be presented with a comprehensive operating budget (all-funds budget template provided by UNC System) for the institution, reflecting both General Fund and Institutional Trust Fund operating revenues and expenditures. The budget is to be reviewed and approved by the Board. The Board of Trustees shall advise the chancellor with respect to the development, execution, and administration of the budget of the constituent institution, consistent with the actions of the General Assembly and the Board of Governors. This is a new process that will have to be incorporated into the other work of the university, campuses are encouraged to begin as soon as possible. The process should culminate in approval of the campus Board of Trustees, which should occur prior to May 4, 2022. 6
Role of the Board - Understanding Development of an All Funds Budget: Resource alignment with strategic priorities Promote stewardship and financial sustainability Better understand the impact of discrete decisions on the broader financial picture Improve transparency and campus engagement Strengthen the fiduciary responsibility of the Board of Trustees 7
Strategic Priorities All Funds Budget Throughout the all-funds budget development, campus leadership is expected to identify opportunities to repurpose existing funds to better align resources and strategic priorities. Institutions must provide a written narrative of no more than two pages explaining how the all- funds budget reflects investment in mission-aligned activities. Specifically, the narrative should address how the campus is allocating its resources to accomplish the following: Progress towards system-wide strategic goals. Progress towards institution-specific strategic goals. Improved efficiency. Financial sustainability and enterprise risks. 8
NCCU Budget Request While NCCU through the base budget is not receiving any net new funding, current resources have been strategically repurposed to meet the current and future goals and objectives. As such the University has adopted a strategy to redeploy and realign existing resources, including the use of vacant positions to achieve the University s most pressing needs. The University is also strategically allocating auxiliary, trust and indirect funds to support the overall mission and objectives The budget was developed through the lens of one budget with many parts, versus several individual budgets. This allows the University to develop and budget and allocate its resources with a singular goal in mind. The following slides provide a high level summary of the actions set forth in the FY2023-24 All Funds budget request. 9
NCCU Budget Request Academic Affairs The Academic Affairs budget provides the base to directly support the strategic priorities of the University of North Carolina System, North Carolina Central University and the Division of Academic Affairs with an emphasis on: Student achievement and success by expanding retention efforts and support for academic programs; of courses across different instructional modes; Programmatic excellence by strengthening the design and implementation Professional development for further advancement of faculty and staff; ; and educational and workforce needs. Community support and partnerships by aligning programs with 10
NCCU Budget Request Academic Affairs (con t) The FY24 Budget request includes funding for various efforts and initiatives that support instruction and foster research activities. For the FY24 Budget Cycle, there are no new requests to the Academic Affair s funding allocation. In addition the Academic Affairs budget request across the schools and colleges, reflects the bulk of adjustments for enrollment reduction. In order to reset for continued growth, the reduction was achieved through the realignment of resources from areas with little to no growth. During this process, areas of focus for continued high growth or focused growth (programs that have been slated for future growth) were also identified. This allows the University to push forward while mitigating the enrollment reduction. Additionally, emphasis on initiatives to support recruitment and retention. Additional resources have been redirected to support both undergraduate and graduate admissions, University College and upper division retention efforts, inclusive of graduate programs and the School of Law. The budget request also reflects efforts to stimulate additional research as this remains a top priority of the University as we push towards a research II classification. Continuous investments are made to provide faculty with support to enhance their research and scholarly production. 11
NCCU Budget Request Student Affairs The budget request for Student Affairs reflects continued efforts to reinvigorate and enhance the Career and Professional Development Center to ensure career readiness of our students that connects with the existing academic programs. Funding has also been strategically allocated to support students sense of connection both on campus and within the larger community of Durham. Additional funding also supports expanding student activities hosted in the Student Center as well as support to maintain the facility (student activities fee increase) In Housing and Residence life, additional funding has been allocated (through tuition and fee request) to support maintenance and renovation related to life safety and ADA compliance. The budget request for Student Affairs reflects continued efforts to reinvigorate and enhance the Career and Professional Development Center to ensure career readiness of our students that connects with the existing academic programs. 12
NCCU Budget Request Student Affairs (cont) Funding has also been strategically allocated to support students sense of connection both on campus and within the larger community of Durham. Additional funding also supports expanding student activities hosted in the Student Center as well as support to maintain the facility (student activities fee increase) In Housing and Residence life, additional funding has been allocated (through tuition and fee request) to support maintenance and renovation related to life safety and ADA compliance. 13
NCCU Budget Request Administration and Finance The budget request for Administration and Finance reflects and effort to collaborate with other University partners to achieve overall University objectives, this includes positions in EHS that support the expansion of research. In facilities, funding for a true preventative maintenance program is being sought, using some existing facilities vacancies and repurposing funding to support master contract usage. In Police and Public Safety the strategic use of campus security funding to support initiatives that create a sense of presence, provide ongoing threat assessment training and necessary equipment for campus safety. Security positions are also being repurposed to provide strategic patrols. An overall increase in dining services allows the University to continue in its commitment to offer high quality retail services throughout the campus. It also allows for strategic investment in infrastructure improvements that are sorely needed. The campus has moved from five retail locations to twelve. 14
NCCU Budget Request Advancement & Athletics Funding is allocated in Advancement to support a full complement of staff as the University ramps up for a capital campaign that seeks to engage alumni, identify potential donors and expands partnerships. In Athletics, the budget reflects strategic efforts pointed to fundraising and game guarantees that allow full support of coaches as well infrastructure support. Operational efficiencies have been achieved by partnering with Administration and Finance, Campus Enterprises and Academic Affairs to relieve the budget of some administrative costs and focus more exclusively on full athletic costs including rising travel (inflationary), and scholarship support. 15
NCCU Budget Request ITS & Other Administrative Units Additional funding for ITS through the education and technology fee increase supports the rising costs of hardware and software maintenance. The All Funds budget also reflects funding requests in support of continuing operations in Human Resources, Legal Affairs and Communication and Marketing. The addition of select positions to support efforts with Title IX investigations, compliance, strategic marketing initiatives and Internal Audit supports the University s overall strategic efforts. Funding and resource support is also allocated to support a cross-divisional University Event Center office. 16
NCCU Budget Request Prior to submission to the NCCU Board of Trustees, this information was reviewed by the Chancellor, ELT and University Budget Committee for feedback, discussion and future planning There was discussion about impacts, next steps, room for growth and improvement and targeted review of all degree programs There was particular interest on continued and increased revenue generation that helps move the University forward while reducing some of the reliance on state appropriations. 17
QUESTIONS? All Funds Budget April 11, 2023 18
