BALL STATE UNIVERSITY BUDGET REDESIGN INITIATIVE - Central Unit Leadership Presentation June 6, 2019
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BALL STATE UNIVERSITY
BUDGET REDESIGN
INITIATIVE
Central Unit Leadership Presentation
June 6, 2019
Draft: For Discussion Purposes Only
Deliberative DocumentDiscussion Topics 1) Review budget initiative timeline, guiding principles, and select model components 2) Introduce new budget model governance and process 3) Present best practices for support unit budget presentations 4) Introduce service level agreements 5) Facilitate question and answer session Draft: For Discussion Purposes 2 Deliberative Document © 2019 HURON CONSULTING GROUP INC.
Implementation Timeline
The timeline below outlines an 18-24 month transition to implement a new budget model.
2018 2019 2020
May
May
Aug
Aug
Nov
Nov
Nov
Sep
Sep
Dec
Dec
Dec
Mar
Mar
Feb
Feb
Jun
Jun
Jan
Jan
Apr
Apr
Oct
Oct
Jul
Jul
Phases 1 – 3
Phase 4
Phase 5
Live Model
Phase Overview
1. Due Diligence and Visioning Develop a clear understanding and vision through an assessment of current resource allocation practices
2. Financial Modeling Build-out a “pro-forma” model to provide a platform for testing different model alternatives
3. Consensus Building Address change management through methodical, data-driven stakeholder engagement
4. Infrastructure Development Develop supporting tools, processes, and governance to carry out budget development
5. Partnership Year Test a new model to understand outcomes if the new model were implemented
Draft: For Discussion Purposes 3
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Guiding Principles
The budget model will promote student success, stimulate strategic growth, encourage
innovation and entrepreneurship, and support interdisciplinary and institutional excellence. It will
also be characterized by the principles below:
Develop a dynamic budget model that aims to stimulate intentional growth and advance the University's
1 mission and strategic plan
Align resources with institutional priorities through broader participation in the budget development process to
2 incentivize instruction, scholarship, and student success for all units
Reward performance, creativity, innovation, and collaboration and hold units accountable for resource
3 stewardship to contribute to the University’s collective fiscal health
Provide a transparent metrics-based approach to resource allocation that also generates discretionary funds to
4 be used for mission critical areas and strategic priorities
Use a simple methodology that enhances management decision-making, accountability, and long-range
5 planning
Leverage valid, reliable, and verifiable data so that the budget model serves as a strong predictor of positive
6 operating performance
Draft: For Discussion Purposes 4
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Budget Model Income Statement
Primary Unit Support Unit
Fund Types / Restriction CAP CAP CAP CCIM CFA COH CSH MCOB TC
Burris &
Indiana
Academic Units Auxiliary Units Support Units
University Total
Total Total Total
Academy
Unrestricted Restricted Total Total Total Total Total Total Total Total Total Total Total Total
1
2 Revenues
5 Total Undergraduate Tuition F F F F F F F F F F F F ## F
8 Total Graduate Tuition F F F F F F F F F F F F ## F
11 Total Online Tuition F F F F F F F F F F F F ## F
12
13
Program & Course Fees
Other Student Fees
##
##
Allocable and Direct
##
##
##
##
##
##
##
##
##
##
##
##
##
##
Unit Organization
##
##
##
##
##
##
##
##
##
##
##
##
14
15
Less: Undergraduate Aid
Less: Graduate Aid
F
##
F
## RevenuesF
##
F
##
F
##
F
##
F
##
F
##
F
##
F
##
F
##
F
##
##
##
F
##
16 Total Tuition & Fees
17
22 Total State Appropriations F F F F F F F F F F F F ## F
23 Grants & Contracts ## ## ## ## ## ## ## ## ## ## ## ## ## ##
24 Indirect Cost Recovery (IDC) Revenue ## ## ## ## ## ## ## ## ## ## ## ## ## ##
25 Gifts ## ## ## ## ## ## ## ## ## ## ## ## ## ##
26 Sales, Services, & Other ## ## ## ## ## ## ## ## ## ## ## ## ## ##
27 Total Other Revenues
29 TOTAL REVENUES
30
Expenditures
31 Faculty - Contract Wages ## ## ## ## ## ## ## ## ## ## ## ## ## ##
32 Faculty - Professional Wages ## ## ## ## ## ## ## ## ## ## ## ## ## ##
33 Faculty Wages ## ## ## ## ## ## ## ## ## ## ## ## ## ##
34
35
Staff & Student Wages
Benefits
##
##
##
##
Direct
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
36
37
Total Wages and Benefits
Expenditures
38 Supplies, Equipment & Other ## ## ## ## ## ## ## ## ## ## ## ## ## ##
39 Travel ## ## ## ## ## ## ## ## ## ## ## ## ## ##
40 Utilities, Maintenance & Renovations ## ## ## ## ## ## ## ## ## ## ## ## ## ##
41 Rent ## ## ## ## ## ## ## ## ## ## ## ## ## ##
42 Services ## ## ## ## ## ## ## ## ## ## ## ## ## ##
43 Depreciation ## ## ## ## ## ## ## ## ## ## ## ## ## ##
44 Total Supplies, Services and Other
46 TOTAL DIRECT EXPENDITURES
48 Transfer In ## ## ## ## ## ## ## ## ## ## ## ## ## ##
49 Transfer Out ## ## ## ## ## ## ## ## ## ## ## ## ## ##
50 MARGIN BEFORE SUPPORT UNIT COST ALLOCATIONS
53
54
Allocated Administrative Support Unit Costs
Academic Support F F
Support/Central
F F F F F F F F F F ## F
55 Administrative Services F F F F F F F F F F F F ## F
56
57
Employee Services
Facilities
F
F
F
F
Unit Allocations
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
##
##
F
F
58 IT F F F F F F F F F F F F ## F
59 Libraries F F F F F F F F F F F F ## F
60 Research Administration F F F F F F F F F F F F ## F
61 Student & Enrollment Services F F F F F F F F F F F F ## F
62 Total Allocated Administrative Support Unit Costs
65
66
69
MARGIN AFTER SUPPORT UNIT COST ALLOCATIONS
Participation Fee Payment F F
Central Funding
F F F F F F F F F F F
70
72
MARGIN AFTER PARTICIPATION FEE PAYMENT
Subvention Fund Disbursement M M
Mechanism
M M M M M M M M M M M
73 Strategic Investment M M M M M M M M M M M M M
74 MARGIN AFTER FEE PAYMENT AND DISBURSEMENT
Draft: For Discussion Purposes 5
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Organization Overview
An incentive-based model classifies organizational units into two categories based on the key
attributes described below.
Primary Units Support Units
▪ Ability to influence revenue generation: ▪ Limited-to-no ability to influence revenue
- Price ▪ Provide services and/or support to academic, research,
and auxiliary units
- Quantity
▪ No allocation of central costs
▪ Cover direct costs with generated revenue
▪ Accountable for optimal service levels
▪ Fully-allocated central (support unit) costs
▪ Encouraged to justify funding levels through
▪ Accountable for performance, retaining both surpluses
benchmarking
and losses
▪ Accountable for fiscal performance
▪ Pay participation fee to support subvention
▪ IT, HR, and Facilities may have service-level agreements
with select primary units
Draft: For Discussion Purposes 6
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Primary Units Organization
Select units were classified as Primary Units and then organized into two categories: Academic
and Auxiliary.
Primary Units
Academic Units (8) Auxiliary Units (3)
▪ College of Architecture and Planning ▪ Athletics
▪ College of Fine Arts ▪ Housing and Dining
▪ College of Communication, Information and Media ▪ Vehicle Facilities and Parking
▪ College of Health
▪ College of Sciences and Humanities
▪ Miller College of Business
▪ Teacher’s College
▪ Burris & Indiana Academy
Draft: For Discussion Purposes 7
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Support Units Allocations
The proposed model allocates the majority of revenues directly to colleges, leaving the
university’s infrastructure unfunded. In order to support these units, the model pools and
allocates support unit’s net costs using select variables.
Cost Pool Allocation Metric
Academic Support Student Headcount
Administrative Services Total Direct Expenses
Employee Services Total Employee Headcount
Facilities Net Assignable Square Ft.
Information Technology Total Institutional Headcount
Libraries Student Headcount + Faculty Headcount
Research Administration Grants and Contracts Revenue
Student & Enrollment Services Student Headcount
Notes:
Draft: For Discussion Purposes - Functional organization depicted for model development does not represent an institutional reorganization will occur/is required. 8
Deliberative Document - Costs allocated to revenue-generating units will represent the net of each administrative service unit’s revenues and expenses.
© 2019 HURON CONSULTING GROUP INC.Example: Cost Allocation Calculation
Once a support unit cost pool amount is determined, activity-level metrics are used to allocate
proportional expenses to Colleges. Below is an illustrative example for an IT cost pool using
“Institutional Headcount” as the activity-level metric.
IT Cost Pool Net Expenditures IT Cost Pool Allocation
IT Cost Pool Net Expenditures $10M
• In this particular
College A
example, the IT cost
$1.5M pool would allocate
Institutional Headcount Metric
(15%) $5K per institutional
College Headcount (HC) HC % headcount ($10M /
College C 2k)
College A 300 15% $5.0M • In future years, this
(50%) College B
$3.5M amount will vary
College B 700 35% (35%) depending on the
approved budget of
College C 1,000 50% the IT cost pool
College Total 2,000 100%
The activity-level metrics are used to allocate the net expenditures of each cost pool. Additionally, fluctuations
in the activity-level metrics do not lead to corresponding fluctuations in the size of the cost pools.
Draft: For Discussion Purposes 9
Deliberative Document © 2019 HURON CONSULTING GROUP INC.BUDGET MODEL GOVERNANCE AND PROCESS
Budget Process Governance Overview
In the annual budgeting process, central leadership, primary units, support units, and
governance committees will work in close coordination to optimize the use of BSU’s resources to
advance the institution’s mission.
Board of Trustees
President
President s Cabinet
Feedback
Dean s Council
Decision Making Flow
Executive Budget
Committee
Provost
Space Mgmt and
Support Unit
Academic Deferred Auxiliary Unit
Allocations
Deans Maintenance Leaders
Committee
Committee
Dept. Chairs and Support Unit
Admin. Leaders
Budget Operational Support Teams
Draft: For Discussion Purposes Note: Auxiliary Unit VP’s will present their budgets to the Executive Budget Committee, Academic Unit Deans will present 11
their budgets to the Provost, and Support Unit VP’s will present their budgets to the Support Unit Allocation Committee
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Executive Budget Committee
Ball State will have an Executive Budget Committee that recommends a university-wide budget,
including subvention fund allocations, to the President and the Board of Trustees.
Roles and Charges Membership
▪ Reviews support unit budget proposals recommended by ▪ President (Chair)
the Support Unit Allocation Committee
▪ Provost and Executive Vice President for Academic Affairs
▪ Addresses funding decisions not made by the Support Unit
▪ Chief Strategy Officer
Allocation Committee to recommend a unified support unit
budget ▪ VP for Business Affairs and Treasurer
▪ Reviews executive summary of primary unit financial plans, ▪ AVP and Chief Budget Officer
including strategic fund requests, from budget hearings
▪ Recommends a university-wide budget to the President
Draft: For Discussion Purposes 12
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Support Unit Allocation Committee
The Support Unit Allocation Committee would meet between November and January with support
unit leadership to review budget proposals, and promote service effectiveness and efficiency.
Roles and Charges Membership
▪ Reviews support unit’s budget proposals, including ▪ VP for Business Affairs and Treasurer / Chief Strategy
strategic objectives, service level demands, and workforce Officer (Chair)
plans
▪ AVP and Chief Budget Officer
▪ Offers suggestions for performance improvement;
▪ Provost Designee
promotes development of service level agreements between
primary units and select support units ▪ 2 College Deans (or designees)
▪ Submits an executive summary of support unit budget ▪ 2 Central Unit Representatives
recommendations to the Executive Budget Committee
▪ Athletics
▪ Elevates support unit budgets that have unresolved
▪ Faculty University Senate Chair1
issues, to the Executive Budget Committee
▪ Staff Council Designee
▪ University Council Designee
▪ AVP Institutional Research and Decision Support
Draft: For Discussion Purposes Note 1: In the event the University Senate Chair is not a faculty member, a faculty member 13
will be identified to represent the University Senate.
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Space Management and Deferred
Maintenance Committee
Roles and Charges Membership
▪ Reviews space requests, identifies possible solutions, and ▪ AVP for Facilities Planning and Management (Chair)
makes recommendations for the use of space on campus
▪ Capital Finance Representative
▪ Develops policies and procedures for space management
▪ Director of Disability Services
▪ Governs allocation and brokerage of space across campus
▪ Student Affairs Representative
▪ Ensures facilities management distributes accurate and timely
▪ Provost Office Representative
space utilization data to operating units for budget planning
▪ Academic Systems Representation
▪ Supports development of service level agreements between
facilities management and revenue-generating units ▪ Auxiliaries Representative
▪ Prioritizes deferred maintenance needs and submits ▪ College Dean
deferred maintenance budget that includes request amount and
▪ Faculty Council Designee
list of deferred maintenance projects
▪ Department Chair Representative
Draft: For Discussion Purposes 14
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Proposed Operation Support Teams
In addition to the budget management structure, the following operational support teams will be
established to facilitate the budget development process.
Budget Operational
Support Teams
Analysis and Budget Policy Review /
Training
Reporting Development Development
▪ Collect feedback on reporting ▪ Develop and execute sub- ▪ Identify relevant policies ▪ Respond to training requests
outputs processes for completing impacted by new allocation through content development
▪ Respond to feedback through model development rules and delivery
revised reporting milestones ▪ Provide input on how to ▪ Assess skills needs across
▪ Support scenario planning ▪ Communicate budget create policies that different stakeholder groups
conducted by units development timelines and maximize benefit of new ▪ Develop training schedule and
guidelines to units model for units feedback forum
Membership: Membership: Membership: Membership:
▪ Budget Office ▪ Budget Office ▪ VP Business Affairs Designee ▪ AVP Budget Designee
▪ Institutional Research and ▪ Provost Office Designee ▪ AVP Budget Designee ▪ Controller’s Office Designee
Decision Support (working ▪ Institutional Research and ▪ Provost Office Designee ▪ IT Designee
with MIDAS) Decision Support ▪ Sponsored Programs ▪ Provost Designee
▪ Space Planning Designee ▪ HR Designee
▪ Space Planning
Draft: For Discussion Purposes 15
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Annual Budget Process Overview
The table below outlines the proposed budget development process milestones and the groups
with primary accountability and responsibility for their completion.
A B C D E
Model Develop Support
Collect Data & Develop Primary Manage Budget
Development Unit Budget Finalize Funding
Develop Unit Budget Throughout
Component Requests / Cost Decisions
Assumptions Requests Fiscal Year
Allocations
Process September 1st – November 1st – January 16th – May 1st – July 1st –
Timing October 31st January 15th April 30th June 30th June 30th
Forecast and allocate Review central support Collect funding Review funding Manage budget based
Primary University revenues; budgets and convert to requests from academic requests and set on updated forecasts
Objective collect allocation allocable costs and auxiliary units University budget and data
variable data
Budget Office / Governance Executive Budget BOT, Executive Budget Budget Office /
Process Provost’s Office & Committees, Budget Committee, Budget Committee, All Units Provost’s Office &
Participants Operational Support Office / Provost’s Office Office / Provost’s Office Operational Support
Teams, Academic Units & Operational Support & Operational Support Teams
Teams, Support Units Teams, Deans,
Auxiliary Units
Draft: For Discussion Purposes 16
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Support Unit Budget Process
The budget development process for central support units under the new model can be divided
into four milestones:
Develop Present Committee Makes Leadership Makes
Financial Plan Financial Plan Recommendations Funding Decisions
• Central Support Units • Units will present their • The Support Unit • The Board of Trustees will
work with their respective financial plans to the Allocations Committee will review the support unit
departments to develop Support Unit Allocations recommend funding levels budgets and make final
one cohesive financial Committee for central units to the funding decisions
plan • Presentations will cover Executive Budget • Funding decisions will be
Committee
• Plans should highlight services and costs for converted into indirect cost
changes relative to prior each presenting unit, • The Executive Budget allocations for the colleges
year funding levels and focusing on changes Committee will review and
document support for relative to the prior year’s make initial funding
requested changes budget proposals for use in
building Primary Unit
budgets
This process is intended to increase transparency surrounding the services provided by central units and their attendant costs.
Draft: For Discussion Purposes 17
Deliberative Document © 2019 HURON CONSULTING GROUP INC.BEST PRACTICES FOR COMMITTEE PRESENTATIONS
Overview
Huron has identified a number of best practices in creating effective budget presentations.
Recommendations for creating a strong budget presentation:
• Provide a holistic explanation to the Support Unit Allocation Committee about the unit’s operations and services
• Outline activity drivers, goals, initiatives and service level demands which may impact unit budgets
• Perform sensitivity analyses related to service levels and various cost scenarios
• Collect benchmarking data to build a case for continued or supplemental funding levels
• Provide clear frameworks for programs and services, pertinent financial data (with an emphasis on trends), and
explanations of any income streams and their relationships to services and programs
The Support Unit Allocation Committee is responsible for creating the framework to inform annual budget requests.
Draft: For Discussion Purposes 19
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Potential Components
Each Central Support Unit should create its own presentation based on the subunits it
represents. Some basic components are:
1. Overview of Central Support Unit 3. Metrics and Evaluation
• Divisions/Sub-Units Represented • Benchmarking Data
• Mission Statement • Survey Data
• Goals for Future Operations • Sensitivity Analysis
2. Overview of Services Provided 4. Funding Request
• Demand or Consumption Data • Historic Funding Levels
• Base-level vs. Add-on • Expenditure Breakdown
• Other Qualitative Metrics • Funding Request
Draft: For Discussion Purposes 20
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Benchmarking Alternatives
Peer, industry, internal, and historical benchmarking data can be analyzed to inform the
Committee about a unit’s effectiveness and efficiency.
Peer Benchmarking Industry Benchmarking
The chart below compares overall IT spending as well as IT spend as a percentage The chart below illustrates that the ratio of IT support staff to end-users at BSU is
of overall expenditures, indicating IT spend is in line with its peers well below industry standards, pointing to opportunities in support productivity
$20 6.9% 10% 40
5.5%
Millions
30
$10 5% 20
5.9% 10
$0 4.0% 0% 0
University W University X University Y BSU Indiana All BSU Public All Indiana Public National
*FY 11-12 Data was used
Historical Benchmarking Internal Benchmarking
The chart below shows how expenditures related to different activity categories have The chart below shows that select academic units on campus have a higher ratio
increased year-over-year. of students per local IT FTE than others. Units with smaller local IT footprints may
10.0% require additional central support
7.5% 400
5.0%
Median: 157.1
2.5% 200
0.0%
2015 2016 2017 2018 0
Customer Support Data Governance Enterprise Solutions Unit 1 Unit 2 Unit 3 Unit 4 Unit 5
While it is recommended to leverage quantitative data wherever possible, other
means of service evaluation should also be used to balance performance evaluation.
Draft: For Discussion Purposes 21
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Benchmarking Resources
There are a number of resources available for peer and industry benchmarking. Some of the most
widely used include:
Area Link(s)
• IPEDs
Academic Support • NACAC
• NCURA
• IPEDs
Administrative Services • NACUBO
• CUPA-HR
• APPA
Facilities
• SCUP
Information Technology • EDUCAUSE
Libraries • ALA
• CASE
Research Administration
• NCURA
Student & Enrollment Services • IPEDs
Draft: For Discussion Purposes 22
Deliberative Document © 2019 HURON CONSULTING GROUP INC.SERVICE LEVEL AGREEMENTS
Service Level Agreements Overview
To improve end-user service levels and operations within a new model, units must establish
reasonable service level agreements (SLAs).
Creating Reasonable Service Level Agreements
An SLA is an agreement or arrangement between support units and their customers / key stakeholders
(e.g., academic units, auxiliary units) that defines the set of services that a provider will supply.
Reasonable SLAs between central units and its customers should be written, negotiated, and signed by
both parties and include:
▪ The scope of services provided, including direction around what work is considered billable vs. non-
billable
▪ Detailed performance levels for services including expected response times
▪ A rate structure with discrete line items for specific services
Benefits of a Well Written SLA
Benefits to Customer/Academic Unit Benefits to Administrative Unit
▪ Provides clear definition of baseline services and the frequency with ▪ Provides clear reference documentation when service or cost
which they will be provided disputes and questions arise
▪ Holds administrative units accountable ▪ More clearly defines customer expectations
▪ Allows for greater control over services provided ▪ Provides a tool for developing organizational KPIs and measuring
workforce effectiveness
Draft: For Discussion Purposes 24
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Service Level Agreement Funding
The new budget model creates the need for central units to document and define service level
agreements with academic and auxiliary units.
Central Support Units 3 Customer units must
make conscious
decisions regarding
utilization of any “add-
1 on” services. Elective
Service levels are split Service Category
services and
between base-level Base-level, “essential” service “Add-on” or “Buy-up” Work chargeback rates
services that are (i.e. regular maintenance, routine custodial service, (i.e. unscheduled room painting, picture hanging,
should be clearly
allocated to units and grounds, pest control, etc.) drapery cleaning, moving, etc.)
communicated to
“add-on” or “buy-up”
customers in SLAs.
work that is paid via
Demand Control SLAs and pricing
chargebacks
structures for “add-on”
Market Forces; work are levers
2 Terms of SLAs available to central
Consumer Decisions
Explicitly defined SLAs units to control
will reduce confusion demand and properly
and encourage Funding Source balance resources to
appropriate service meet both base-level
level utilization Model Indirect Chargebacks; Departmental and “add-on” workload
Expense Allocations Operating Funds demand.
Huron recommends, at its most complex form, a simple, two-tiered funding model* that
funds base-level services through a model allocation and “add-on” work through charges.
Draft: For Discussion Purposes 25
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Service Level Agreement Details
Select Support Units will need to develop a set of Key Performance Indicators (KPIs) based on
service standards that are easy to measure, widely disseminated, and openly discussed.
Develop and Measure
• Determine a set of quantifiable indicators to ensure the administrative unit is meeting its operational
goals and SLA terms.
• Measure the organization against its KPIs on a regular basis and communicate these scores broadly KPIs should also be used
through meetings, emails, and on a unit’s website. as an internal
motivation tool.
KPI Example, Centered on: Healthy competition
Customer service… Organizational efficiency… between groups needs to
• Customer satisfaction rate as measured through • Measurable cost savings through cost conscious be encouraged to
surveys decision making contribute to the
• Average request completion time • Utility rate expenditures
organization’s regular
success with meeting
Organizational effectiveness… Staff development… goals and standards.
• Percent of preventative maintenance work • Percent of staff partaking in development or
orders completed on schedule training
• Percent of rework handled due to failure to meet • Turnover rate
SLA expectations • Internal promotions
Draft: For Discussion Purposes 26
Deliberative Document © 2019 HURON CONSULTING GROUP INC.QUESTIONS?
APPENDIX 1: ADD’L MODEL COMPONENTS
General Tuition Allocations
Huron worked with the Budget Office to create three major tuition categories1. The Steering
Committee selected metrics to incentivize the College of Instruction and Record across all tuition
types.
FY18
Gross Tuition
$210.4MM
Undergraduate Graduate Online
$150.5MM $19.3MM $40.6MM
Resident Non-Resident Resident Non-Resident Undergraduate Graduate
$101.8MM $48.7MM $8.2MM $11.1MM $8.1MM $32.5MM
Instruction Record Instruction Record Instruction Record Instruction Record Instruction Record Instruction Record
(75%) (25%) (75%) (25%) (75%) (25%) (75%) (25%) (75%) (25%) (75%) (25%)
Note 1: The general ledger does not contain this level of tuition detail; the Budget Office provided the more granular tuition breakouts shown
Draft: For Discussion Purposes above. 29
Deliberative Document © 2019 HURON CONSULTING GROUP INC.Financial Aid
Several types of financial aid were reviewed and some components will be treated differently in
the new model.
Direct Aid General Aid
$46.7M - Will be allocated to each of the
$8.5MM - Will continue to flow directly to academic units based on a College’s
Undergraduate Aid the units as recorded within the general proportional share of undergraduate tuition
ledger that they receive through the allocation
methodology
Graduate Aid $13.1M – Reclassified to individual
$9.8M - Will continue to flow directly to the
(Stipends & Tuition Colleges based on where the graduate
units as recorded within the general ledger
Remissions) student is paid
Draft: For Discussion Purposes Note 1: Restricted federal aid of $59.3 is removed as an equivalent 30
Deliberative Document amount of federal dollars are received and restricted for this use.
© 2019 HURON CONSULTING GROUP INC.Program and Course Fee Revenue
In the proposed budget model, program and course fee revenue is directly attributed to the
campus unit where the revenue is generated.
Program and course fee revenue is received centrally, then later allocated to campus units based on a
Current Practice
standing methodology
Proposal Attribute 100% of program and course fees to the units where program and course fees originate
Attributing 100% of program and course fees reflects actual amounts generated and could better support
Rationale
academic entrepreneurship and costs related to course development
▪ Campus units will receive 100% of the program and course fee revenue to support instructional cost and
Implications better recognize where the revenue is generated
▪ Monitor / govern how fees are stablished and/or used?
Draft: For Discussion Purposes 31
Deliberative Document © 2019 HURON CONSULTING GROUP INC.State Appropriation Allocations
The proposed model recognizes the nature of earmarked dollars and leverages remaining
resources ($133.1MM) to align with BSU’s new strategic plan and the Indiana Performance-Based
Funding Model. The allocation of incentives does not apply to Auxiliaries and central units.
Total State Appropriations
$158.0MM
Direct State General (Allocable)
Appropriations State Appropriations
$24.9MM $133.1MM
Capital/Debt Indiana Research Instruction Student Success
Service Academy $2.5MM $104.4MM $26.1MM
$20.6MM $4.3MM (Carved) (80% Balance) (20% Balance)
Draft: For Discussion Purposes 32
Deliberative Document © 2019 HURON CONSULTING GROUP INC.APPENDIX 2: ADD’L PROCESS DETAILS
Outstanding Questions
To further define the budget development process under the new model, the Support Unit
Allocations Committee must address the following:
Develop Present Committee Makes Leadership Makes
Financial Plan Financial Plan Recommendations Funding Decisions
• How do you define a • What content should be • What will be the review • How does the Executive
“unit”? presented to the Support process after central units Budget Committee want to
• How many “financial plans” Unit Allocations present their financial see recommendations?
will the Support Units Committee? plans?
Allocations Committee • Should all units be • What guidance will the
review? reviewed in-depth each committee need from the
• What cost centers will be year, or should there be a Budget Office?
included in each plan? rotation of some units • How will recommendations
receiving more analysis
• What role will Service be communicated to
Level Agreements have in than others to be able to executive leadership?
each unit’s financial plans? afford a more in-depth
review?
• Do all units need one?
The following slides are related to Huron’s experience working with other
institutions, and are intended to provide context on available options.
Draft: For Discussion Purposes 34
Deliberative Document © 2019 HURON CONSULTING GROUP INC.A
A B C D E Group/Process Collect Data and Develop Assumptions
September 1st – October 31st
Collect Data & Board of
Trustees
Develop Assumptions
Executive
• The budget process kicks off with the distribution of Budget
Committee
the Annual Budget Letter, which contains a high-level
summary of the budget environment, key dates, etc.
Support Unit
• The Budget Office will compile the allocation metrics, Allocation
which will be reviewed by the academic units Committee
• The Budget Office will forecast University-wide
Review metrics
revenue & fixed cost assumptions (tuition, Academic and and provide
Auxiliary Units feedback
appropriations, etc.) as well as multiple revenue
scenarios
• A capital committee will be appointed by the Executive Central
Support Units
Budget Committee every two years that will update the
capital improvement plan. The deferred maintenance
plan will be updated annually by the Space Budget Office / Develop activity-
Management and Deferred Maintenance Committee Provost s
Office &
Distribute annual
budget letter outlining
level metric data
and provide to
Publish final
activity-level
Develop initial
general revenue
Update capital
improvement and
process and key metrics data to deferred
Operational academic units forecasts
information academic units maintenance plan
for feedback
Support Teams
Draft: For Discussion Purposes 35
Deliberative Document © 2019 HURON CONSULTING GROUP INC.B
A B C D E Group/Process Develop Support Unit Budgets
November 1st – January 15th
Develop Support Board of
Trustees
Unit Budgets
Executive Review support unit budget
•
Set initial guidelines and
The Executive Budget Committee will set and Budget goals for support unit requests and makes
preliminary budget
Approve? Yes
Committee budgets
communicate guidelines and goals for support unit recommendations
budgets
Review support unit
No
Support Unit budgets and make
• Central support units will develop and present Allocation preliminary
recommendations to
budget requests to the Support Unit Allocations Committee Executive Budget
Committee
Committee, highlighting the services provided and
costs
Academic and
• The Support Unit Allocations Committee will Auxiliary Units
recommend funding levels (relative to prior year)
to the Executive Budget Committee, which will
then make preliminary budgetary decisions Central Develop / revise
all-funds budget
Support Units
• Based on funding decisions, support units will
make budget adjustments as needed Budget Office /
Call for support
Provost s
unit budget
Office & requests and
Operational distribute
Support Teams budget template
Draft: For Discussion Purposes 36
Deliberative Document © 2019 HURON CONSULTING GROUP INC.C
A B C D E Group/Process Develop Primary Unit Budgets
January 16th – April 30th
Develop Primary Board of
Trustees
Unit Budgets
Executive Facilitate budget
• Once the support cost allocations have been Budget development
Approve? Yes
conversation with
Committee
distributed, academic units will receive templates auxiliary units
with their formula-allocated revenues and indirect Auxiliaries
cost allocations pre-populated
Support Unit
No
Allocation
• Units will develop “all funds” budget requests by Committee
populating the template with direct revenues, direct
expenses, and subvention fund requests, explaining
Present budget
the rationale for changes from the prior year Academic and Develop / revise
all funds budget
Colleges proposals to
Auxiliary Units Provost
• Academic units will present their budgets to the
Provost for consideration, while the auxiliary units
will present their budgets directly to the Executive Central
Support Units
Budget Committee
• Based on preliminary funding decisions, academic Budget Office /
and auxiliary units will make budget adjustments as Provost s
Office &
Distribute budget
template with
Call for primary
unit budget
needed Operational
general
revenues and
development
with all-funds
Support Teams cost allocations budget
Draft: For Discussion Purposes Note 1: Auxiliary Unit VP’s will present their budgets to the Executive Budget Committee, Academic Unit Deans will present 37
their budgets to the Provost, and Support Unit VP’s will present their budgets to the Support Unit Allocation Committee
Deliberative Document © 2019 HURON CONSULTING GROUP INC.D
A B C D E Group/Process Finalize Funding Decisions
May 1st – June 30th
Finalize Funding Board of
Trustees
Review and
approve
University-wide
Decisions
budget
• Once initial funding decisions have been made, the Executive
Finalize
Budget
Budget Office will assess the budget for technical Committee
University-wide
budget proposal
compliance and create budget summaries
• The Executive Budget Committee will finalize the Support Unit
Allocation
University-wide budget proposal Committee
• The Board of Trustees will approve the University-
wide budget recommended by the Executive Budget
Academic and
Committee Auxiliary Units
• The Budget Office will input all HR salary information
into Banner, then communicate final funding Communicate
Central approved
decisions across the University and distribute an Support Units
funding
decisions to
updated budget model respective units
Budget Office /
Provost s Analyze budget
Communicate final
for technical Upload HR salary Distribute
Office & approved budget
compliance and information into updated
Operational and conclusion of
creates budget Banner budget m odel
budget process
Support Teams summaries
Draft: For Discussion Purposes 38
Deliberative Document © 2019 HURON CONSULTING GROUP INC.E
A B C D E Group/Process Manage Budget Throughout Fiscal Year
July 1st – June 30th
Manage Budget Board of
Trustees
Throughout Fiscal
Year Executive
Budget
Committee
• Academic, Auxiliary, and support units will be
expected to manage within approved budgets
Support Unit
• Updates will be made to the University budget Allocation
Committee
throughout the year as better information for
forecasts (e.g., enrollment) becomes available
Academic and
• Updates to forecasts will be reflected in revised Auxiliary Units
allocations (e.g., If enrollment is lower than Manage to approved
forecasted, allocated tuition will have to decrease) budget
and subsequent budget adjustments may be
Central
necessary Support Units
• At the end of the fiscal year the Budget Office will
prepare for year-end reporting Budget Office /
Review periodic
Provost s
budget to actuals Prepare for year-
Office &
reporting and create end reporting
Operational periodic forecast
Support Teams
Draft: For Discussion Purposes 39
Deliberative Document © 2019 HURON CONSULTING GROUP INC.THANK YOU
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