Frank Goldberg, PhD Vice Provost for Resource Planning & Management Heather J. Haberaecker, PhD Executive Assistant Vice President for Business & Finance.

Frank Goldberg, PhDVice Provost for Resource Planning & Management

Heather J. Haberaecker, PhDExecutive Assistant Vice President for Business &

Finance

BUDGET DEVELOPMENT AND MANAGEMENT

Tuition

GRF

Research

GRF

ICRGRF

Health Care

Innovation

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FY 2013

3

Budget Decision Principles:

•Ensure fiscal integrity – decentralized responsibility and decentralized accountability

•Ensure good decision making – assign decision making authority to appropriate entity

•Maximize use of resources – include financial, physical and human resources

•Balance priorities – balance support for instructional, research, patient care, economic development and service missions of the Campus

•Maintain quality – reduce and redirect budgets in a manner that best preserves quality

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Funds flow diagram: ICR

2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE

DIRECT RESEARCH

EXPENDITURES

$1.00DIRECTCOSTS

COLLEGE 47.5%

COLLEGERESEARCH

GOALSCOSTS

VCR7.7%

CAMPUSRESEARCH

GOALS

GRANT AWARD

OTHER32.3%

CAMPUSRESEARCH

COSTS

INDIRECT COSTS PROJECTS12.5%

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6

FY 2005 ICR Formulaic Allocations & Commitments(Shown as a percentage of the College’s total F&A earnings)

A&A CAHS CBA DENT EDUC ENG JACSW LAS MED NURS PHARM SPH CUPPA$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Formulaic @ 36.5% Campus Commitments

36.5%36.5%

53.9%

65.9%

55.8%

36.8%

55.6%

55.4%

116.2%

57.4%

70.8%

N/A

46.0%

$ in Millions

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Changes in ICR AllocationsFY 2005 – FY 2013

How the Funds FlowICR

FY 2013

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Colleges

VCR

VCAS

All Other Units

UA

Special Projects

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UIC Budget Model

Budget Units

Tuition Distribution

Salary Program (Admin)

Strategic Initiatives

Hold Harmless

Space Economy

Space Costs

UICBudget Model

GRFTuition

Revenue Reallocation

State Budget ReductionsUA Central Costs

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Funds flow diagram: Tuition

2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE

UNDER-GRADUATE

TUITIONDIFFERENTIAL

TUITION

75% TO COLLEGES

25% TO PROVOST

25% TO PROVOST

75% TO COLLEGE

GRADUATE TUITION

DIFFERENTIAL TUITION

75% TO COLLEGESBy Headcount

25% TO PROVOST

85% TO COLLEGE15% TO PROVOST

PROFESSIONALTUITION

85% TO COLLEGESBy Headcount

15% TO PROVOST

60% BY CREDITS

15% BY HEADCOUNT

15% TO PROVOST10% TO FIN AID

15% TO PROVOST10% TO FIN AID

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Comparison of State Appropriations and Tuition Revenue

CBA LAS

A&A

JACSW

PHARMED

UCEN

GNURS

DENT

CAHSMED

CUPPASP

H0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tuition GRF

FY 2007 FY 2013

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CBA LAS

A&A

JACSW

PHARMED

UCEN

GNURS

DENT

CAHSMED

CUPPASP

H0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

How Tuition is Distributed

Colleges All Other Units$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

Income Fund GRF

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Other centrally-budgeted costs $30.9MOther centrally-budgeted costs $78.2MUtilities $24.7M

Utilities $46.4M

Academic Support & Admin Units

$185.4M

Academic Support & Admin Units

$175.5M

Colleges (incl Grad & Honors)

$257.4M

Colleges (incl Grad, Honors, &

SCS)$339.4M

Financial Aid $31.5M

University of Illinois at ChicagoUnrestricted Funds - by Use

FY 2002 FY 2013

$498.4M $671.0M

+ 29.4%

- 5.3%

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Other centrally-budgeted costs $30.9MOther centrally-budgeted costs $54.9M

Utilities $24.7MUtilities $32.6M

Academic Support & Admin Units

$185.4M

Academic Support & Admin Units

$123.2M

Colleges (incl Grad & Honors)

$257.4M

Colleges (incl Grad, Honors, &

SCS) $238.3M

Financial Aid $22.1M

University of Illinois at ChicagoUnrestricted Funds - by Use

(HEPI inflation adjusted)FY 2002 FY 2013

$498.4M $471.4M

- 33.5%

- 7.4%

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ACCOUNTING FOR YOUR FUNDS

• What is a C-FOAP? – It is a 25 digit number used to identify transactions for

your department (similar to how one would use a bank account number).

– We are going to focus on the 3 most important – the C – F - O– C – Chart is a one digit code for a campus (Chicago = 2)

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CHARTC

FUNDF

ORGANIZATIONO

ACCOUNTA

PROGRAMP

1 digit # 6 digit # 3 or 6 digit # 6 digit # 6 digit #

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• A Fund provides a cumulative record of the sources and uses of monies.

• Examples of Funds (types are designated by the first digit of the 6-digit fund number):

1 = State2 = ICR and other types of unrestricted funds3 = Self-supporting activities4 = Grants (federal)5 = Grants (state, local and private)6 = Gifts, endowments, service plans (medical, nursing, dental)

• Your organization code is 6 digits of which the first 3 digits are your department code– Your department code is the most frequently used

number

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ACCOUNTING FOR YOUR FUNDS (cont..)

DISTRIBUTION OF INDIRECT COST RECOVERY (ICR)

• Indirect Cost Recovery (ICR) Revenue (also referred to as Facilities & Administrative (F&A) Revenue) refers to funds generated from the recovery of general infrastructure and other costs that cannot be directly charged when performing extramurally funded research.

• Typical Standard ICR Distribution

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Colleges 47.5%*Campus 44.8%VC for Research 7.7%Total 100.0%

• 30% of the 47.5% is governed by the Sponsored Programs Proposal Approval Form (PAF) with a standard 10% college and 20% department split. The 30% may be shared with other departments and colleges based on the contributions of multiple researchers. The other 17.5% is distributed to the college administering the grant.

UIC DEFICIT REDUCTION POLICY

• Deficits are a serious drain on the campus’ financial flexibility and should be avoided.

• A usage charge is assessed on all non-state funds (excluding grants and contracts) with a deficit of $10,000 or greater

• Financial reports are sent to Deans and College Academic Fiscal Officers (AFO’s) at the end of 2nd and 3rd quarters and the month of May to allow departments to review and initiate actions to address any potential reportable deficits

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UIC DEFICIT REDUCTION POLICY (cont.)

If a deficit remains at the end of fiscal year you will need to submit a deficit reduction plan as follows:

1. $10,000 - $149,999 – Completion of a simple form outlining the cause and planned resolution of the deficit

2. $150,000 - $499,999 - Completion of a three year action plan for resolution of the deficit

3. $500,000 and above - Completion of a five year plan and a meeting to discuss the proposed plan

All plans will be reviewed and ultimately approved/disapproved by the Provost. If the plan is not approved, the unit will be assessed a higher usage charge (currently 3% versus 1% for a deficit with an approved deficit reduction plan).

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MONTHLY FINANCIAL REPORTS

There are three monthly financial reports you should review with your respective business manager to make sure you do not have any deficits:

1. Detail Operating Ledger Statement

2. Operating Ledger Transaction Statement Chart 2 

3. Payroll Labor Distribution Report

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IMPORTANT BUDGET MANAGEMENT PRINCIPLES TO REMEMBER

• Avoid deficits• Review your department’s financial status monthly• Allocate salaries to grants as soon as they are received so

your monthly fund balances are accurate• Allocate faculty and staff salaries to C-FOP’s based on the

person’s effort (grants, service plans, self-supporting, etc.)• Recover the full costs of providing departmental goods or

services on self-supporting funds. • Charge expenses to the correct C-FOP (e.g. only related

charges on a specific grant fund)

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QUESTIONS