RHODES UNIVERSITY
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Transcript of RHODES UNIVERSITY
RHODES UNIVERSITYBUDGET 2014
LAUNCH
PRESENTATION TO BUDGET COMMITTEE29 July 2013
Developed and presented by Geoff ErasmusManagement Accountant
BUDGET2014
CONTENT
Purpose of Budget Launch
Budget Process Framework Key Elements Strategy Budget Information System Budget Principles Budget Process Steps Budget Cycle/Timeline
Budget 2014 Key Parameters Budget Templates Budget Submissions Time-table
Questions
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PURPOSE OF BUDGET LAUNCH
Get everyone on board
Present the process
Introduce and explain new aspects
Clarify uncertainties
BUDGET2014
CONTENT
Purpose of Budget Launch
Budget Process Framework Key Elements Strategy Budget Information System Budget Principles Budget Process Steps Budget Cycle/Timeline
Budget 2013 Key Parameters Budget Templates Budget Submissions Time-table
Questions
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INFORMATION SYSTEMDesigned to link and support all the
elements of the budget.
PurposeThe purpose and objectives of the budget is understood by all
Principal Budget Factor Early identification of the appropriate factor to prevent delays
Co-ordinationInter-relationships are managed and all stakeholders involved
ParticipationBudget holders participate in setting their own budgets
KEY ELEMENTS FOR A GOOD BUDGET
InformationAdequate information made available to those involved in the process
Inter-relationships Inter-relationship of budgets are understood and managed in relation to the principal budget factor
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PURPOSEPURPOSE
Purpose expressed in the Institutional Planning & Review Framework
Communicated to stakeholders through the budget manual
Purpose expressed in the Institutional Planning & Review Framework
Communicated to stakeholders through the budget manual
CO-ORDINATIONCO-ORDINATION
Stakeholder matrix developed
Budget launch on 29 July 2013
Timetable agreed with relevant stakeholders
Stakeholder matrix developed
Budget launch on 29 July 2013
Timetable agreed with relevant stakeholders
PARTICIPATIONPARTICIPATION
Three Budget Committee meetings
Academic budget requests to Deans’ Forum
Training for budget developers
HOD’s sign-off
Three Budget Committee meetings
Academic budget requests to Deans’ Forum
Training for budget developers
HOD’s sign-off
BUDGET STRATEGY
INFORMATIONINFORMATION
Budget manual available on the Finance Divisions website
Templates include historical budget and actual expenditure information
Budget manual available on the Finance Divisions website
Templates include historical budget and actual expenditure information
PRINCIPLE BUDGET FACTOR
PRINCIPLE BUDGET FACTOR
Subsidy grant determined to be the principal budget factor
Subsequent budgets to be developed
Subsidy grant determined to be the principal budget factor
Subsequent budgets to be developed
INTER-RELATIONSHIPSINTER-RELATIONSHIPS
Budget matrix developed Budgets scheduled
according to the relationships
Budget matrix developed Budgets scheduled
according to the relationships
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BUDGET INFORMATION SYSTEM
SPEEDFLEXIBILITY
INTELLIGENCE EFFECTIVENESS & EFFICIENCY
What to expect from an information
system
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BUDGET INFORMATION SYSTEM
• Speed – can be achieved dependant on the structure of the budget model• Flexibility – very flexible if the model is built correctly• Intelligence – allows for consolidation, multiple views and analyses• Ease of use – limited training for input users
EXCEL BASED
• Speed – download to excel required for review, reporting and analyses• Flexibility – limited to input only, download to excel for further use• Intelligence – limited use, download to excel required• Ease of use – limited training for input users, download to excel for further
use with further manipulation required
PROTEA BASED
Objective: to facilitate a budget process with speed, flexibility, intelligence and ease.
Immediate solution: use MS Excel to develop user-friendly input templates and a budget for easy consolidated, analyses and presentation.
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BUDGET PRINCIPLES
Balanced budget to be achieved
Zero-based approach
Cross-subsidisation
Broad Participation and Shared Responsibility
Fairness and Transparency
Accountability
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Key Inputs and Parameters Develop Budgets Review and Refine
Developed by Finance and budget holders. The various budgets are consolidated to develop the university budget.
Developed by Finance and budget holders. The various budgets are consolidated to develop the university budget.
Finance reviews and refines budgets with budget holders. Budget is presented to Budget Committee for further refinement.
Finance reviews and refines budgets with budget holders. Budget is presented to Budget Committee for further refinement.
Determine the key inputs and parameters. Budget manual is prepared and distributed.
Determine the key inputs and parameters. Budget manual is prepared and distributed.
Budgets include Subsidy Income, Student fees, Academic expenditure, Capital Equipment, etc.
Budgets include Subsidy Income, Student fees, Academic expenditure, Capital Equipment, etc.
Academic departments, Divisions, Residences, Consolidated University, Surplus/Deficit.
Academic departments, Divisions, Residences, Consolidated University, Surplus/Deficit.
Inputs include Enrolments, Fees, etc.Parameters include CPI %, Salary Increase %, etc.
Inputs include Enrolments, Fees, etc.Parameters include CPI %, Salary Increase %, etc.
Budget is presented at F&GP, Senate and finally Council for approval. Budget holders are advised of their final budget allocations.
Budget is presented at F&GP, Senate and finally Council for approval. Budget holders are advised of their final budget allocations.
Consolidated University and Residences budgets, detailed per Division. Balanced budget.
Consolidated University and Residences budgets, detailed per Division. Balanced budget.
Approval and Sign-off
BUDGET PROCESS STEPS
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Transfer running budget grants
Budget launch with budget manual distributed
Budgets consolidated and reviewed
Preparation for new budget
Budgets developed throughout University
Budget presented at Budget Committee
Budget finalised and communicated to stakeholders
Dec
Budget presented for approval at F&GP and Council
BUDGET CYCLE
Academic capital budget grants allocated
6 MONTHS
BUDGET2014
CONTENT
Purpose of Budget Launch
Budget Process Key Elements Strategy Budget Information System Budget Principles Budget Process Steps Budget Cycle/Timeline
Budget 2014 Key Parameters Budget Templates Budget Submissions Time-table
Questions
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BUDGET 2014 KEY PARAMETERS
RU BENCHMARKS
INCOME Budget 2013 Budget 2014 COMMENT
1 Block Grant Subsidy increase 8% 7.5% Preliminary
2 Student Fee increase 8% 8% Preliminary
3 Student Enrolments 7645 7861
Proposed3.1 Under-graduate 5329 5561
3.2 Post-graduate 2273 2255
3.3 Occasional 43 45
EXPENDITURE
4 Staff Cost : Income ratio 69.6% 68.0% Preliminary
ECONOMIC INDICATORS
CPI Actual 2012 Actual 2013 COMMENT
5 Headline 5.7% 5.5% STATSSA June 2013
6 Eastern Cape 5.3% 4.9% STATSSA June 2013
7 Tertiary Education 9.7% 8.8% STATSSA June 2013
EXCHANGE RATES
8 Rand/US Dollar 8.21% 10.05% Ave till June 2013
9 Rand/Euro 10.54% 12.10% Ave till June 2013
10 Rand/Pound 13.01% 14.24% Ave till June 2013
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BUDGET TEMPLATES
Purpose of Templates Tool to capture budget Standardisation Facilitates analyses and consolidation
Need for Improvements on existing templates Insufficient ability for analyses and consolidation Inconsistent naming of expenditure items Slow and manual process
Features Historical figures are pre-populated for comparison Budget against GL Accounts Option to enter annual or monthly figures (academic departments) Monthly figures required from Support Divisions
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BUDGET SUBMISSIONS
ACADEMIC DEPARTMENTS1
INSTITUTES AND UNITS2
STUDENT ACTIVITIES3
SUPPORT DIVISIONS
Expenditure Budget X X X Form E
Running Grant Form B Financial forecast
Financial forecast X
Academic Capital Equipment Form D X X X
Furniture & Equipment Form C Form C Form C Form C
Sign-off HOD & Dean DirectorDean of
Students / Registrar
Director
1. Includes Deans’ offices.2. Includes Community Engagement, International Office, RUMEP, LAC, EBRU, CSD, ISEA, RUMEP, David Rabkin.3. Includes SRC, Sports Administration, Rhodes Music Radio
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BUDGET 2014 TIME-TABLE
DATES TIME ACTIVITY ACCOUNTABLE VENUE
29-Jul-13 09h00 Budget Committee Meeting - Budget Launch Finance Council Chamber
29-Jul-13 16h00 Budget Packs made available via Finance website (TopList) Finance
30-Aug-13 16h30 Due date for return of Budget Requests from Budget HoldersDepartments /
Divisions / Units
10-Oct-13 09h00 Budget Committee Meeting - 1st review of draft budget All Council Chamber
25-Oct-13 14h15 Fees Schedule presented to Senate for comment Finance Council Chamber
29-Oct-13 09h00 Budget Committee Meeting - final review of draft budget All Council Chamber
14-Nov-13 11h00 Budget presented to F&GP Finance Council Chamber
5-Dec-13 10h30 Budget presented to Council for approval Finance Council Chamber
12-Dec-13 12h00 Advise Departments/Divisions/Units of budget allocations Finance
1-Apr-14 Spending against Academic Capital Grants Commence Departments
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END
QUESTIONS ?