Lou Mitton Paola Morrone - mcmaster.ca · Collaboration/joint programs to support student ... How...
Transcript of Lou Mitton Paola Morrone - mcmaster.ca · Collaboration/joint programs to support student ... How...
Changes to budget Submission Drivers Strategic Mandate Agreement Funding Formula Review Budget Model Revenue Challenges Hyperion Planning Hyperion Reports
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What’s driving the change ◦ Provincial initiatives Strategic Mandate Agreement Funding formula review ◦ Budget model ◦ Revenue challenges
Changes to the narrative templates ◦ Activity unit/support unit/ancillary ◦ NASM (space) and budget model drivers ◦ Variance template ◦ Budgeted positions ◦ Organization chart
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Challenge of directing limited funding to the greatest priorities
What is Driving the Change?
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Alignment with provincial objectives Promote differentiation between universities Support accountability and sustainability Improve quality and outcomes for students
Strategic Mandate Agreement
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McMaster’s areas of institutional strength Research and innovation with high societal impact Experiential and/or technology-enabled learning Access, retention and success for underrepresented
groups (Aboriginal, first generation, students with disabilities)
Programs in growth areas (Health Sciences and the broad determinants of health, fostering robust societies, Business and Economics, Science and Engineering, Communications and Culture)
Collaboration/joint programs to support student mobility
Enrolment growth In effect until March 31, 2017
Strategic Mandate Agreement
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Implications ◦ Future funding will be guided by provincial
priorities and dependent on fulfilling commitments ◦ Increased reporting requirements
Budget Committee decisions will be based on what each envelope is doing to contribute to achievement of SMA objectives
Strategic Mandate Agreement
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MTCU principles ◦ Enhance quality and improve student experience May replace current performance funding ◦ Support the existing differentiation process Potentially multiple formulas for different universities ◦ Financial sustainability Address concern about demographic decline ◦ Increased transparency and accountability Greater data requirements
Funding Formula Review
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Timelines ◦ Review announced in March 2015 ◦ Consultation with stakeholders is complete ◦ Report to the province is underway ◦ New Deputy Minister Sheldon Levy starts December
1 ◦ Detailed design phase expected to start early in
2016 ◦ Implementation may coincide with expiry of SMA in
2017
Funding Formula Review
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Implications ◦ Uncertain and possibly disruptive outcome if there
are winners and losers Budget Committee will be evaluating budget
submissions on sustainability in the event of an unfavourable impact on revenue
Funding Formula Review
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Overview ◦ All central revenue is allocated to activity units
(Faculties) ◦ Support unit allocations are deducted from the
activity unit revenue based on drivers, which reflect usage
Principles include: ◦ Promote transparency, trust and engagement ◦ Assure financial responsibility, accountability and
fairness ◦ Advance the efficient use of physical and human
resources
Budget Model
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Implications ◦ All changes in revenue impact Faculty allocations ◦ Greater effort to control costs, especially space ◦ Faculties want to ensure they get value for their
contribution to support units Budget Committee will look at cost drivers,
service levels, and fees for service to determine impacts across the University
Budget Model
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Demographic decline ◦ Expected to reach 89% of 2013 level in 2021 ◦ Will not recover until 2034
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Projected population decline:18-20 year old Ontarians, Indexed: 2013=100
Ministry of Finance Population Projections
Revenue Challenges
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Implications ◦ Total revenue available will drop with enrolment ◦ Greater competition amongst universities for a
shrinking pool of students Budget Committee will monitor trends in
enrolment, staffing and other benchmarks to make informed decisions about allocations
Revenue Challenges
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Objective ◦ To provide information about each envelope’s
operations related to current strategic challenges outlined above
Changes to the narrative templates
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Provides information specific to each type of envelope ◦ Activity units (Faculties) Faculty and student ratios Enrolment trends ◦ Support units Base services and internal fees Cost drivers ◦ Ancillaries Competitive position
Different Narrative Templates
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Provides information on trends ◦ NASM (net assignable square meters) Utilization of limited resource Potential source of efficiencies ◦ Budget model drivers (support units only) Indicator of cost pressures
NASM and budget model drivers
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Provides a high-level summary of major changes to each envelope’s operation ◦ Standardized ◦ Focuses on significant items (> $100K and 10%)
Variance Template
Variance Template
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Provides the trend in steady state employee levels ◦ Shows the impact of decisions made to cope with
changes in demand and revenue constraints ◦ Impact of holding positions vacant is removed
Budgeted Positions
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PeopleSoft GL
PeopleSoft Pay Roll
PeopleSoft HR
Hyperion
How does Hyperion Planning fit within MOSAIC?
Hyperion Receives Salary
Expense Actuals from GL Monthly
Hyperion Receives Employee
Master Data from HR twice
a year Hyperion Receives
Salaries from Payroll
When GL & PR don’t match
there’s a HEDGE
Hyperion Sends FINAL 8 Month review & Budget to GL
•8 Month Review
•Enter Budget
•Finalize Budget
•Year End
•5 Month Review
•Budget is Finalized
May – June September – October
November – April April – May
How does Hyperion Planning fit within the Budgeting Process?
•8 Month Review
•Enter Budget
•Finalize Budget
•Year End
•5 Month Review
•Budget is Finalized
May – June September – October
November – April
April – May
Gen
erat
e Ex
pens
e Fo
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Load Actual by Account
Operating Expense
Original Budget / Projection
Surplus/Deficit Appropriations
Revenues Expenses
FOR
ECA
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Gen
erat
e Sa
lary
For
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t
DETERMINE INCREASES
LOAD ACTUALS
FORECAST HOURS
SALARIES
HEDGE ACTUALS TO MATCH THE GL
BENEFITS FTE
Salaries Benefits
Stipends
Grade Emp. Group
Step
FOR
ECA
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COPY
EDIT ADJUST
BUDGET TO A NEW ACCOUNT Subm
it fo
r App
rova
l
Sa
ve
co
py
to
Ex
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le
COMPARE
Adjust at Year or Month Levels
Spread monthly values equally or proportionally
Compare with Actuals
Add Supporting Details
Upda
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udge
t & F
orec
ast i
n H
yper
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Web Based Report: ◦ YTD Actuals Balance
SmartView: ◦ 5 Month Review form ◦ Actuals By Employee by Account
VariAnce To Budget
Web Based Report: ◦ Monthly Variance
SmartView: ◦ Variance Drill Down Reports: Ancillaries Operating
Provides in‐month and year‐to‐date revenues and expenses with variances to budget and prior year actuals to allow monthly tracking.
Shows the YTD Actual and Budget balances for the current years, as well as variance columns.
Similar to old AM090 report
Provides Previous year’s actuals, current year’s Original Budget, current Year’s projection and Variances.
Can view at high or detailed levels
The BIG Picture The BOTTOM Line
Web Based: ◦ Statement of Operations
SmartView: ◦ J. 8 Month and Budget Review Report
Shows actual revenues and expenses by month, fund and program.
Can run for current or previous years. The budget for the year is shown and the balance
available in the remaining months to meet the budget.
Users can drill into the revenue or expense category down to the individual account level.
By Envelope or Individual Department BIG PICTURE: All Funds, All Programs, All Departments
BOTTOM LINE: Net Income
Drill Down SmartView: ◦ Operating and Ancillary Drilldowns ◦ All Funds: Drilldown by Department Drilldown by Account Drilldown by Program
Budgeting Services Website: ◦ http://mcmaster.ca/bms/BMS_FS_Budgeting.htm
Hyperion Reports Catalogue and Guide: ◦ http://mcmaster.ca/bms/pdf/hyp_cat.pdf
Budgeting Services & Hyperion Team
Francois Joubert Chris Sylvester Iain Clarkson Lou Mitton Paola Morrone
joubert sylvest iclarks mittonl morronep
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