2016-2017INCENTIVE FUNDING

UNIVERSITY OF UTAH

Created on 2/17/2016

WHY CREATE ANEW MODEL FOR

INCENTIVE FUNDING?

THE NEED FOR CHANGE

• Based on clear feedback from the colleges the prior SCH Budget model which had been in place for fifteen years, lacked clarity and allowed for unintended consequences. The Spring adjustment which was based on SCH changes, it did not add value to the academic year.

• The decision to HOLD HARMLESS was carefully implemented for both of the academic years 2015-2016 and 2016-2017. Additionally, BASE funding replaced incentive funds for advance graduate credit hours.

CHANGE TO MEET GOALS• Based on feedback from the colleges, a change to our

model was important in order to better align the resources to meet the goals:1. Promote student success to transform lives2. Develop and transfer new knowledge3. Engage communities to improve health and quality of life4. Ensure long-term viability of the university

• The Budget Principles and Process Working Groups were tasked to define a budget process that would benefit our campus and position the institution for continued and expanded success in future years. The goal is to optimize resource allocation decisions, to enable innovation, and to encourage resource generation activities. You can read about the work that was done at this link: http://academic-affairs.utah.edu/about/academic-task-forces-and-initiatives/

Additionally, the Campus Budget Advisory Committee will review this and all budget decisions annually.

OVERSIGHT

BUDGET COMPONENTS

The Budget has five components: • 79.9% is Base Funding • 5.4% is from Senior Vice President of Academic Affairs

support• 10.7% is from Differential Tuition • 4.0% is the Incentive Funding Model (this is a small component in the

overall budget.)

• Strategic Funding Initiatives is a variable percentage

OBJECTIVES OF THE NEW INCENTIVE FUNDING

Align funding with strategic goal to promote student success to transform lives

Emphasize and encourage campus and legislative priorities Increase stability, transparency and clarity Provide greater predictability Decrease competition and increase collaboration

HERE ARE THE POSSIBLE SOURCES OF FUNDING THAT CAN GO TO AN ACADEMIC COLLEGE

GIFTS OR DONATIONS - FUND 6000

BASE, BENEFITS, VP COMMITMENTS, & NEW FUNDING - FUND 1001 GRANTS AND CONTRACTS - FUND 5000REIMBURSED OVERHEAD - FUND 2500

ENDOWMENTS - FUNDS 8500, 8600, 8700

OPERATING - FUND 2000

WHAT SOURCE OF REVENUE WILL THE INCENTIVE FUNDING COME FROM? FUND 1001

WHAT PERCENTAGE OF AN ACADEMIC COLLEGES 1001 FUNDING IS THE

INCENTIVE FUNDING?

Answer: Incentive funding will vary from college to college.Important note: As represented below, the percentage is generally very low.

HOW DOES INCENTIVE FUNDING WORK?

POT OF MONEY

$12,500,000 40% SCH

PRODUCED

40% MAJORS DECLARED

20% DEGREES AWARDED

TOTAL FUNDING DEDICATED TO

INCENTIVE

% FUNDING ALLOCATION BY METRIC

$5,000,000

$5,000,000

$2,500,000

STEP 1*THIS IS ONLY AN EXAMPLE*

STEP 1: ALLOCATE THE OVERALL FUNDING DEDICATED

TO INCENTIVE FUNDING

MULTIPLY TOTAL FUNDING BY % ALLOCATION PER

METRICSCH

DEGREES

MAJORS

600,000

13,000

6,000

STEP 2*THIS IS ONLY AN EXAMPLE*

TOTAL SCH, MAJORS & DEGREES FOR ALL

PARTICIPATING UNITS

STEP 2: TOTAL ALL SCH, MAJORS AND DEGREES FOR

PARTICIPATING COLLEGES AND CALCULATE PERCENTAGES

CALCULATE PERCENT ALLOCATION PER

COLLEGESCH

MAJORS

DEGREES

College 1 SCH Formula: 9,947 / 600,000 = 2%*Amounts are rounded here for simplicity, however they will not be rounded when the formula is calculated

SCH

DEGREES

TOTAL FOR EACH POT

$5,000,000

MAJORS $5,000,000

$2,500,000

STEP 3*THIS IS ONLY AN EXAMPLE*

CALCULATE FUNDING FOR

COLLEGE 1

STEP 3: CALCULATE AND DISTRIBUTE TOTAL

FUNDING TO THE COLLEGE DEANS

$5,000,000 x 2% = $100,000

$5,000,000 x 1% = $50,000

$2,500,000 x 2% = $50,000

DISTRIBUTION TO DEAN OF COLLEGE 1

$100,000 50,0000

+ 50,0000$200,000

SCHMAJORSDEGREES

Transfer July 1st COLLEGE

1 DEAN’S OFFICE

HOW WERE THOSE NUMBERS DERIVED?

FORMULA DATA FACTS Who determines the percentage split between SCH, Majors and

Degree’s?Senior Vice President of Academic Affairs (SVPAA) with the input from the Deans, Academic Leaders, Financial Managers, and Campus Budget Advisory Committee determined the percentages. Those percentages can be adjusted on a year to year basis if necessary. Who calculates the money to transfer and where do they get their data? The Budget Office calculates the totals to distribute and performs the funds transfer but they retrieve data from Institutional Analysis (IA) & Institutional Data Management & Visualization (IDMV).

FUNDING DATA FACTS 1001 Funds: The dollars that support this model are 1001 funds. July 1 Transfer: The dollars will be transferred July 1. One-Time Expenses: These dollars should not be used to pay for personnel or on-going expenses unless

you pay a portion back into the benefit pool (contact Sandy Hughes at the Budget Office for more information).

Stability: The pot of money is stable, inasmuch as the SVPAA continues to support it from year to year. The overall dollar amount can increase depending on availability of new funding from the state or tuition.

College Level Only: The dollars will be calculated at a college level (not department level) and distributed to the deans of each participating college. The deans will determine further distribution within their colleges.

March True Up Eliminated: There will be no March true up as there has been in the past. What a college receives July 1st will be final for the fiscal year.

Advanced Graduate (AG): AG dollars from the prior SCH model were excluded in this model and the AG funding should be included as part of the 16-17 base funding for a given college.

SCH DATA FACTS SCH is a 2 year rolling average

The 16-17 fiscal year calculation uses 13-14 & 14-15 SCH data. Therefore, the average between years 13- 14 & 14-15 are used.

End of Term for Summer, Fall and Spring SemesterBeginning in fiscal year 15-16, end of term SCH data will be used for the 2 year rolling

average.

Excludes AG SCH (7,000 Level Courses)The model excludes Advanced Graduate SCH, all other SCH are included, aka Lower Division,

Upper Division & Basic Graduate. The funding for this portion was transferred to base for 16-17.

MAJOR DATA FACTS Snapshot: Major data is a snapshot in time – end of spring semester

for a fiscal year. 1 Major: Only 1 major counted – the Primary Declared Major (First

major of record only). No Minors or Double Majors: Currently does not count minors or

double Majors. Undergrads Only: The count only includes undergraduate majors,

excludes all graduate majors. Major Data: Data integrity should improve over time.

DEGREE DATA FACTS

Includes All Degrees Awarded for All Students for a fiscal year Doctorate Masters Bachelors

HOW CAN I SEE THE DATA BEHIND THE DOLLAR

AMOUNT TRANSFERRED?

DATA VISIBILITY & VERIFICATION

Incentive Funding DashboardIf you would like to see the numbers for your college and departments within a college, IDMV will be producing a dashboard that can display and export that data to Excel. This dashboard will be available to the deans office.

OBIA WebsiteThe OBIA website has many resources that will help colleges view their

SCH, major and degree data. Keep in mind that not all of these resources will be reconcilable back to incentive model data due to differences in snapshot dates and various other nuances as the information displayed in various reports serve different purposes.

MORE QUESTIONS?Feel free to contact the Budget Office

Sandy Hughes, Director of Budget and Planning 801-581-6455 sandy.hughes@utah.eduEthan Hacker, Financial Analyst801-587-3756ethan.hacker@utah.eduSharayne Farnsworth, Financial Analyst801-585-7956sharayne.farnsworth@utah.edu