Budget Update
Detailed insights into the budget updates, guiding principles, RCM takeaways, decision-making filters, and alignment strategies for the University's fiscal year encompassing various committees and stakeholders for efficient financial management, transparency, and strategic decision-making.
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Presentation Transcript
Budget Update January 2024 President s Cabinet Faculty Senate February 2024 Budget Workgroup University Leadership Council
Agenda Budget Process Budget Calendar Fiscal Year 2023-2024 Operating Budget
RCM Takeaways and Lessons Learned Should: Account specifically for President s Strategic Fund Strengthen budget governance Decrease decisioning time Allocate funds to strategic priorities faster Enhance data availability and tools for units to manage budgets Formalize mechanism for gathering feedback from key constituencies Implement incentive structure to drive the right behaviors across the University Include all campuses in the budget process Should Not: Fund administrative or support units based on headcount Try to plan everything centrally as it dilutes ownership and strategic thinking
Budget Process Guiding Principles 1. Transparency 2. Strategic decision making 3. Strategic Alignment with the university s centers of gravity 4. Incenting cost control and strategic behavior
Filters for Decision Making Will it support PBF, PE and AAU metrics? USF s commitments to student success, faculty excellence, research and engagement align with performance on these metrics USF funding relies on performance on these metrics Will it support great place to learn, great place to work? How students and employees experience USF in physical and digital space Includes engagement with the broader USF community, through clinical activities, intercollegiate athletics, and external partnerships Will it support a competitive advantage? There are many great opportunities and initiatives available to USF; not all of them make sense for USF Commitment to focus on our strengths
Process Summary Alignment with Guiding Principles and Established Filters Transition last year s global budget presentations to local processes Dean or Support Unit Leader develops budget with team Support for data and analysis from Business and Finance Local processes should include the following elements: Current year budget performance Accomplishments and challenges New budget requests tied to Strategic Plan Resource optimization plans Budget adjustments will happen at various levels (analogy: Local/State/Federal) New resources will need endorsement from Senior Leader and final approval from the President
Key Elements of the New Process Budget owners submit funding requests, accompanied by achieved efficiencies and lower priority items that could sunset if state funding is reduced Framework is under development to drive efficient use of funds Budget calendar is aligned with performance management calendar Carryforward approach is formalized and provides President and Senior Leadership access when balance exceeds target % of unit s operating budget % being modeled to minimize short-term impact of change to the methodology Reporting dashboards are standardized to enable budget ownership and synchronized to reconcile data used in analysis
Budget Calendar August September April - May University provides recommended budget priorities to Leadership Presentations of detailed operating budget and allocations President sets budget priorities and they are communicated at BOT Budget Workshop BOT approves operating budget Budget allocated using budget priorities February - March June July October 10
Calibration Performance Review Meeting Pay for Performance Employee Self- Assessment 6/15 7/15 Supervisor s Assessment 7/15 8/1 Detailed Annual Review/Budget Timeline 8/1 8/15 8/15 9/1 October pay periods Use the new values- driven Performance Evaluation Form to facilitate discussion between a supervisor and an employee. Supervisors can initiate annual performance review meetings after unit calibration sessions are completed. Pay for performance/ merit/discretionary/ COLA payment. If budget available. Supervisors take employees' self-assessments into consideration when completing reviews. Use the values-driven Performance Evaluation Form. Non-recurring resources / Carryforward Annual Review Bulls Budget System Performance management calibration sessions enable leaders to apply similar standards to each of their direct reports to ensure everyone in the department is ranked on the same scale. Calibrations can be done not only by department, but also by employee level or job function. Note that if applicable, spreadsheets for merit award/bonus pay for out- of-unit employees must be submitted to Comp by the communicated deadline. Recurring resources Employees should document accomplishments, reflect on major projects or events that may have impacted performance, and develop ideas for growth and professional development. State incremental/decremental resource allocation Please note that in-unit employees will be compensated in a manner consistent with their respective Collective Bargaining Agreement (CBA). Resources: Three Step Calibration, Performance Management Calibration and Conversations, Performance Calibration Sessions Budget JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Develop Carryforward (CF) Plan for % thresholds of recurring budget based on mid-year forecasted balances Submit incremental recurring resource requests Submit incremental non- recurring resource requests Load budgets in Bulls Budget System Units Review and prioritize recurring resource requests and submit to President Review and prioritize non-recurring requests and submit to President VP SVP Review and prioritize recurring resource requests Review and prioritize non-recurring resource requests Allocate approved adjustments to recurring resources Finalize resource allocation plan PRES Allocate July 1 CF Allocate approved adjustments to non- recurring resources Adjust continuation operating budget for preliminary estimated resource allocations from the State and present to BOT Prepare CF & Fixed Capital Outlay (FCO) plans for BOT presentation Finalize Bulls Budget System information BFA Update operating budget (if necessary) for BOT presentation Approve CF & FCO plans Approve adjusted continuation operating budget Budget Workshop BOT Approve updated operating budget (if necessary) BOG State Finalize resource allocations Provide estimated resources
Fiscal Year 2023-2024 Operating Budget
Objectives Fiscal Year 2023-2024 Notable Impacts Educational and General Budget Priorities Operating Budget Details 13
FY2024 Impacts on Budget 1. Record Legislative Session State Appropriations a) $63.3M in recurring resources b) $20.8M in non-recurring resources c) $47.3M for new equipment and facilities construction State Performance Based Funding ~$14.2M incremental ($49.6M Total State Investment) Enrollment and Tuition Collections Bargained wage increases, internal equity and state-mandated benefit improvements Balanced E&G Budget 2. 3. 4. 5. 14
FY2024 Budget Priorities Budget Committee made recommendations to President and Provost who reviewed and finalized allocation decisions across all budget entities All allocations aligned with strategic plan, performance-based funding and our national ranking aspirations The focus of distributions for FY24 include: Faculty and Staff Recruitment and Retention Student Success and Outcomes Infrastructure Support 15
FY24 Allocations New E&G Base Resources Operational Support Preeminence Performance Based Funding Total Available Sources $ 44,000,000 33,333,333 14,193,501 91,526,834 Distributions Presidential Transformation Funding Faculty Success Student Success HSC Direct - Non-Recurring People Infrastructure Total Distributions Presidential Transformation Funding allocations are ongoing Investment are allocated using criteria/filters for decision making Some funds resolved operating costs previously paid on Carryforward 25,573,205 16,575,028 9,581,203 14,000,000 16,175,746 9,621,652 91,526,834
FY2024 Funding Uses FY24 Plan % Budgeted Expenses (in Thousands) Salaries and Benefits Other Personal Services Expenses Operating Capital Outlay Risk Management Financial Aid Debt Service Library Resources Unallocated TOTAL Operating Budget Expenses Faculty Practice Plan - DSO Self Insurance Adjustments to FAST Total Uses FY24 Plan 1,181,090 $ 155,308 1,045,932 12,761 16,189 91,496 2,520,705 (293,723) (6,205) (299,928) 2,220,776 Budgeted Expenses (in Thousands) Colleges Direct Appropriation Units Support Units - Academic Affairs (AA) Support Units - Non-AA FY22 Plan $ 464,008 10,981 189,069 222,712 886,770 123,655 450,094 499,241 52,529 1,125,519 2,012,290 100.00% % 23.06% $ 548,426 0.55% 9.40% 11.07% 44.07% 1,096,372 6.14% 22.37% 24.81% 2.61% 55.93% 1,124,405 2,220,776 24.70% 0.98% 10.45% 13.24% 49.37% 6.74% 17.89% 23.53% 2.47% 50.63% 100.00% 21,830 232,158 293,959 6,632 Auxiliary Units Financial Aid Source Contracts & Grants Other 149,600 397,233 522,649 54,923 2,118 9,179 Total Budgeted Expenses NOTES: - DSOs and Self Insurance sources are excluded as they are not in USF Financial System. - Figures above do not include Carryforward budgets. - Contracts & Grants source of funds is budgeted at University level during operating budget process. - Other includes held tuition authority and strategic funds. 17
College and Direct Appropriation Units FY24 Plan % 6.27% 1.71% 1.20% 2.34% 0.42% 1.46% 1.37% 0.97% 0.26% 4.94% 2.86% 0.85% 0.06% 24.70% Budgeted Expenses (in Thousands) College of Arts & Sciences College of Behavioral & Community Science College of Education College of Engineering College of Marine Science College of Nursing College of Public Health College of the Arts Genshaft Honors College Morsani College of Medicine Muma College of Business Taneja College of Pharmacy Patel College of Global Sustainability Total Colleges FY22 Plan $ 128,546 32,826 25,410 39,035 8,409 20,282 27,928 18,717 4,499 83,661 56,909 16,565 1,223 464,009 % 6.39% $ 139,159 1.63% 1.26% 1.94% 0.42% 1.01% 1.39% 0.93% 0.22% 4.16% 2.83% 0.82% 0.06% 23.06% 38,031 26,567 51,892 9,360 32,447 30,387 21,455 5,694 109,630 63,598 18,952 1,253 548,426 FY24 Plan % 0.30% 0.54% 0.15% 0.98% Budgeted Expenses (in Thousands) Florida Institute of Oceanography Cyber Florida Global and National Security Institute Total Direct Appropriation Units FY22 Plan $ 4,120 6,861 % 0.20% $ 6,688 0.34% 0.00% 0.55% NOTES: - Figures do not include Carryforward, Contracts & Grants or DSO sources of funds - College amounts are for all campuses 11,907 3,235 21,830 - 10,981
Academic Affairs Support Units FY24 Plan % 0.15% 0.77% 0.19% 0.96% 3.55% 1.19% 0.61% 0.62% 0.21% 1.16% 1.05% 10.45% Budgeted Expenses (in Thousands) Graduate School Library Office of Decision Support Office of the Provost Student Success Student Financial Aid USF World VP Office of Research Health Sarasota-Manatee campus AA St. Petersburg campus AA Total Support Units - AA FY22 Plan $ 3,274 14,072 3,923 7,628 69,594 26,233 12,925 14,875 5,817 11,018 19,711 189,069 % 0.16% $ 3,267 0.70% 0.19% 0.38% 3.46% 1.30% 0.64% 0.74% 0.29% 0.55% 0.98% 9.40% 17,051 4,219 21,417 78,793 26,353 13,528 13,692 4,726 25,709 23,403 232,158 NOTES: - Figures do not include Carryforward, Contracts & Grants or DSO sources of funds - Faculty and Student Success Hiring funds included in Office of the Provost have since been allocated across campuses
Non Academic Affairs Support Units FY24 Plan % 0.55% 2.31% 0.58% 0.09% 0.21% 0.90% 0.66% 3.01% 0.26% 0.08% 0.24% 0.27% 0.60% 0.87% 1.40% 0.43% 0.77% 13.24% Budgeted Expenses (in Thousands) Advancement Facilities Operation Human Resources Office of Compliance and Ethics Office of General Counsel Sr VP Financial Strategy VP Business and Finance VP Information Technology VP Executive Offices University Audit University Communications and Marketing University Community Partnerships University Police Utilities & Risk Management Health Sarasota Manatee campus units St. Petersburg campus units Total Support Units - Non-AA FY22 Plan $ 2,190 48,292 6,216 1,406 3,764 7,279 12,779 57,630 4,841 1,552 2,904 3,534 9,247 19,680 18,826 8,334 14,238 222,712 % 0.11% $ 12,322 2.40% 0.31% 0.07% 0.19% 0.36% 0.64% 2.86% 0.24% 0.08% 0.14% 0.18% 0.46% 0.98% 0.94% 0.41% 0.71% 11.07% NOTES: - Figures do not include Carryforward, Contracts & Grants or DSO sources of funds - Advancement, IT, Executive, UCM areas had operating costs paid on Carryforward funds in FY22 that were resolved/partially resolved in FY24 ($17.75M ) - In FY22, HR was standalone; in FY24 it reflects the combined Chief Administrative Officer areas including HR, Payroll, HRIS, and OEO - In FY24, Sr VP Financial Strategy holds some equity for On Campus Stadium - Health amounts include funds not yet allocated to colleges 51,283 12,912 2,036 4,620 20,093 14,632 66,890 5,830 1,690 5,313 5,927 13,295 19,275 31,003 9,654 17,185 293,959
