re-envisioning your budget model · internal sales revenue would off-set direct expenditures,...

RE-ENVISIONING YOUR BUDGET MODEL

Greg DuBois | Assistant Vice President, Office of the CFOGeorge Kolb | Director, University Budgets

YOU

RP

RESENTERS

Greg DuBoisAssistant Vice President Office of the Chief Financial Officer

George KolbDirector, University BudgetsOffice of the Chief Financial Officer

THEUN

IVERSITYO

FFLORIDA

Established in 1853 Land Grant Institution AAU Member (Public) Since 1985 16 Academic Colleges (including

Medical School) 2015 Enrollment 52,357

• Undergraduates – 34,002• Graduates – 12,117• Professional – 4,156• Non Degree Seeking - 2082

THEUN

IVERSITYO

FFLORIDA

150 Research Centers and Institutes 2,000-acre campus 900+ buildings (170 with classrooms and labs) 2014-15 Total Expenditures $5B

THEUN

IVERSITYO

FFLORIDA

UF Enterprise Revenue Sources FY15

Chart1

State Appropriation (Noncapital)

Student Tuition and Fees (Gross)

Federal, State and Local Grants and Contracts

Other Grants, Contracts, Gifts and Transfers from Component Units

Hospital and Component Unit Revenues

Investment Income (Net)

Auxiliary Sales and Other Revenues

Federal and State Student Financial Aid

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654120

522444

431518

207574

2673530

126601

308163

115755

Revenue Sources UF only

UF Revenue Sources - FY15

Dollar amounts expressed in thousands

UF%

State Appropriation (Noncapital)$ 654,12013.0%

Student Tuition and Fees (Gross)$ 522,44410.4%

Federal, State and Local Grants and Contracts$ 431,5188.6%

Other Grants, Contracts, Gifts and Transfers from Component Units$ 207,5744.1%

Hospital and Component Unit Revenues$ 2,673,53053.0%

Investment Income (Net)$ 126,6012.5%

Auxiliary Sales and Other Revenues$ 308,1636.1%

Federal and State Student Financial Aid$ 115,7552.3%

Total5,039,705

Less Income Before Other Revenues, Expenses, Gains, or Losses

NetMatches "People and Space" Expenses

Auxiliary Sales and Others:

Housing rent, Transportation and Parking revenues, Student Heath fees, lab testing fees, conferences and workshops, Florida University Press, food concession commissions, Medical Self-Insurance premiums (blended component units).


Chart1


Total $5.04 Billion

SRECNP 2014

UNIVERSITY OF FLORIDA

A COMPONENT UNIT OF THE STATE OF FLORIDA

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION1235

for the Fiscal Year Ended June 30, 2014

(amounts expressed in thousands)

University of FloridaComponent Units

Direct-SupportHealth ScienceShands Hospital

2013-14OrganizationsCenter Affiliatesand OthersTOTAL 2014Classification

OPERATING REVENUES

Student Tuition and Fees$ 508,448$ -$ -$ -508,448Tuition

Scholarship Allowances(149,793)---(149,793)

Student Tuition and Fees, Net of Scholarship Allowances358,655---358,655

Federal Grants and Contracts366,315---366,315Sponsored Programs

State and Local Grants and Contracts44,638---44,638Sponsored Programs

Nongovernmental Grants and Contracts118,723---118,723Sponsored Programs

Sales and Services of Auxiliary Enterprises (Note 13)129,942---129,942Auxiliary Sales and Others

Sales and Services of Educational Departments52,012---52,012Auxiliary Sales and Others

Sales and Services of Component Units-65,191--65,191Component Unit Sales (mainly UAA and Gator Boosters)

Hospital Revenues--663,0831,587,6992,250,782Hospitals and Physician Practice Associations

Gifts and Donations - Component Units-99,305--99,305Gifts

Royalties and Licensing Fees - Component Units-29,958--29,958Component Unit Sales

Interest on Loans and Notes Receivable1,178---1,178Auxiliary Sales and Others

Other Operating Revenues2,38141127,89644,86875,556Auxiliary Sales and Others, Component Unit Sales, Hospitals and Physician Practice Associations

Total Operating Revenues1,073,844194,865690,9791,632,5673,742,048Total Operating Revenue - based on tution gross and after transfer elimination

OPERATING EXPENSES

Employee Compensation and Benefits1,724,9141,43779,505793,7492,599,605

Services and Supplies472,507159,06555,444722,3121,409,328

Utilities and Communications62,761---62,761

Scholarships, Fellowships and Waivers, Net78,418---78,418

Depreciation123,1149,9447,80377,220218,081

Self-Insured Claims and Expenses (Note 16)(5,784)---(5,784)

Other Component Unit Operating Expenses-----

Total Operating Expenses (Note 18)2,455,930170,446142,7521,593,2814,362,409

Operating Income (Loss)(1,382,086)24,419548,22739,286

NONOPERATING REVENUES (EXPENSES)

Noncapital State Appropriations605,8906,912-7,050619,852State Appropriations

Federal and State Student Financial Aid116,994---116,994Student Financial Aid

Noncapital Grants, Contracts, and Gifts4,401---4,401Sponsored Programs

Investment Income37,474202,79258337,587278,436Investment Income

Net Increase (Decrease) in the Fair Value of Investments32,52412,736(412)3,45248,300Investment Income

Investment Expenses(3,598)(793)(876)(7,586)(12,853)Investment Income

Other Nonoperating Revenues42246,210-4,85851,490Auxiliary Sales and Others, Component Unit Sales, Hospitals and Physician Practice Associations

Gain (Loss) on Disposal of Capital Assets(2,699)1,219(655)(2,047)(4,182)

Interest on Capital Asset-Related Debt(8,048)(2,349)-(20,372)(30,769)

Other Nonoperating Expenses(2,948)485(41,334)42,809(988)

Net Nonoperating Revenues (Expenses)780,412267,212(42,694)65,7511,106,620Total Nonoperating Revenue - after transfer elimination

4,848,668Total Revenue

Income (Loss) Before Other Revenues, Expenses,

Gains, or Losses(601,674)291,631505,533105,037

Capital State Appropriations43,667---43,667

Capital Grants, Contracts, Donations, and Student Fees17,707---17,707

Additions to Permanent Endowments-31,583--31,583

92,957

Total Other Revenues, Expenses, Gains, or Losses61,37431,583--

Increase (Decrease) in Net Position(540,300)323,214505,533105,037

Net Position, Beginning of Year2,368,9611,980,030158,8731,036,234

Adjustment to Beginning Net Position (Note 2)--(357)-

Adjusted Net Position, Beginning of Year, as Restated2,368,9611,980,030158,5161,036,234

Net Position, End of Year$ 1,828,661$ 2,303,244$ 664,049$ 1,141,271

Revenue Sources-Recon BOT Stats



UFDSOHSC Affiliates and HospitalsTotal%

Hospitals and Physician Practice Associations$ - 0$ - 0$ 2,328,404$ 2,328,40448%

State Appropriation (Noncapital)$ 605,890$ 6,912$ 7,050$ 619,85213%

Sponsored Programs$ 534,077$ - 0$ - 0$ 534,07711%

Student Tuition and Fees (Gross)$ 508,448$ - 0$ - 0$ 508,44810%

Investment Income (Net)$ 66,400$ 214,735$ 32,748$ 313,8836%

Auxiliary Sales and Other$ 185,935$ - 0$ - 0$ 185,9354%

Component Unit Sales$ - 0$ 141,770$ - 0$ 141,7703%

Federal and State Student Financial Aid$ 116,994$ - 0$ - 0$ 116,9942%

Gifts$ - 0$ 99,305$ - 0$ 99,3052%

Total2,017,744462,7222,368,2024,848,668

Reconciliation with BOT Welcome Stats

(Less) Scholarship Allowance(149,793)--(149,793)adjust Tuition and Fees line

Add Capital State Appropriation43,667--43,667adjust State Appropriations, remove (Noncapital), or add new line

Add Capital Grants, Contracts, Donations, and Student Fees17,707--17,707adjust Sponsored Programs line

Add Addition to Permanent Endowment31,583--31,583adjust Gifts

Remove Interest on Loans and Notes Receivable from Aux(1,178)adjust Auxiliary

Add Interest on Loans and Notes Receivable to Investment1,178adjust Investment

Add Transfers Elimination (Omitted)

Component Unit Sales-53,915-53,915adjust CU sales

Gifts-1,235-1,235adjust Gifts

Hospitals and Physician Practice Associations--155,632155,632adjust Hospital revenue

Total Revenue per BOT Welcome Stats1,960,908517,8722,523,8345,002,614





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Revenue Sources




Hospitals and Physician Practice Associations$ - 002,328,4042,328,40448%

State Appropriation (Noncapital)$ 605,8906,9127,050619,85213%

Sponsored Programs$ 534,07700534,07711%

Student Tuition and Fees (Gross)$ 508,44800508,44810%

Investment Income (Net)$ 66,400214,73532,748313,8836%

Auxiliary Sales and Other$ 185,93500185,9354%

Component Unit Sales$ - 0141,7700141,7703%

Federal and State Student Financial Aid$ 116,99400116,9942%

Gifts$ - 099,305099,3052%

Total2,017,744462,7222,368,2024,848,668

AFR Reconciliation

Operating Revenue4,389,585

Nonoperating Revenue and Expenses575,172

plus Nonoperating Expenses not included above643,043

plus Scholarship Allowance149,793

(less) Transfers Elimination(908,925)

Total Revenue Summary4,848,668



Revenue Sources


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Size and Scale

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Size and Scale: FY14 Key Facts

University and Component Units

Total Revenues$4.8billion

Investment Pool$3.9billion

Book Value of Capital Assets$2.9billion

Employment - headcount26,489UF only, as of 3/20/15

Research Expenditures$709million

Lecomte,Patrice:HERD survey

Expenses UF Only



UF%


Sponsored Programs$ 1,197,74344.7%



Auxiliary Sales and Other$ 185,9356.9%


Total2,681,410

Less Income Before Other Revenues, Expenses, Gains, or Losses(58,457)

Net2,622,953Matches "People and Space" Expenses

AFR Reconciliation


Nonoperating Revenue871,747





Expenses UF Only


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Functionnal Expenses

Expenses - FY14

Dollar amounts are in thousands

2014SourceGASB Type

Employee Compensation and Benefits$ 1,724,914AFROperating

General Expenses$ 475,905AFROperating and Nonoperating

Space - Utilities and Communication$ 62,761CWOperating

Space - Debt Service$ 8,048AFRNonoperating

Space - Depreciation$ 123,114AFROperating

Scholarship Allowance and Scholarships, Fellowships and Waivers$ 228,211AFRNonoperating

Total Expenses2,622,953

CW = Crosswalk

General Expenses

Subcontracts (C&G)60,668

Contractual Expenses129,956

Furniture, Equipment and Supplies119,325

Travel45,064

Other Expenses65,734

Total General Expenses420,747

Validation of General Operating Expenses

Total UF Operating Expenses2,455,930

Total UF Nonoperating Expenses17,230

(less) Operating except General identified above(1,997,255)

General Expenses475,905

AFR Reconciliation

Operating Expenses2,455,930

Nonoperating Expenses17,230

Scholarship Allowance149,793




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Financial Aid

Functional Classifications


Instruction$ 686,760

Research584,734

Public Service432,100

Academic Support167,247

Institutional Support162,253

Depreciation123,114

Auxiliary Operations112,307

Operation and Maintenance of Plant94,905

Scholarships, Fellowships and Waivers, Net206,452

Student Services35,851


Total Expenses$ 2,622,953

Expenses 3 years

Financial Aid


Federal - Pell Grants47,492

Other Federal Grants2,982

Bright Future59,722

Other State Programs9,301

Departmental Scholarships32,907

Institutional Scholarships34,687

Fee Waivers41,120

Scholarship Allowance and Scholarships, Fellowships and Waivers228,211

Gross Tuition

People and Space - FY14


201420132012SourceGASB Type

Employee Compensation and Benefits1,724,9141,619,8681,522,935AFROperating

General Expenses420,747415,794459,451AFROperating and Nonoperating

Space - Utilities and Rentals73,03375,46677,117CWOperating

Space - Repair and Maintenance44,88646,10753,913CWOperating

Space - Debt Service8,0486,1345,483AFRNonoperating

Space - Depreciation123,114121,356116,697AFROperating

Scholarships, Fellowships and Waivers, Net Expense228,211230,088222,364AFRNonoperating

Total Expenses2,622,9532,514,8132,457,960

CW = Crosswalk

Above Expenses associated with Sponsor Research495,452511,376534,947


Total UF Operating Expenses2,455,9302,346,5892,244,498

Total UF Nonoperating Expenses17,23020,16071,908

(less) Operating except General identified above(2,052,413)(1,950,955)(1,856,955)

General Expenses420,747415,794459,451

AFR Reconciliation

Operating Expenses2,455,9302,346,5892,244,498

Nonoperating Expenses17,23020,16071,908

Scholarship Allowance149,793148,064141,554

Total Expenses2,622,9532,514,8132,457,960

State Appropriation

Amounts expressed in thousands

2005200620072008200920102011201220132014

Student Tuition and Fees (Gross)$ 242,921$ 255,373$ 278,381$ 310,893$ 344,001$ 383,204$ 424,462$ 462,050$ 500,508$ 508,448

Noncapital State Appropriation$ 557,086$ 596,314$ 702,289$ 662,574$ 620,968$ 552,200$ 579,123$ 527,880$ 485,479$ 605,890

State Appropriation


Noncapital State Appropriation

Student Tuition and Fees (Gross) and State Appropriations

Debt 20 Year


2005200620072008200920102011201220132014


Capital Appropriation$ 42,745$ 68,716$ 115,309$ 152,474$ 83,702$ 37,969$ 60,259$ 6,060$ 9,464$ 43,667

Total State Appropriation$ 599,831$ 665,030$ 817,598$ 815,048$ 704,670$ 590,169$ 639,382$ 533,940$ 494,943$ 649,557

Debt 20 Year


Capital Appropriation

Total State Appropriation

Research Awards 10 year

EntityType of Debt20142013201220112010200920082007200620052004200320022001200019991998199719961995

Univerity of FloridaCIDP181,579119,401126,284104,50779,164129,375126,555112,636119,260112,812123,180129,128134,967135,764140,424114,36675,50178,47671,10373,862

Univerity of FloridaLoans & Notes11,4735,000000000000000000000

Univerity of FloridaInstallment Debt3,3601,6181,9452,0702,5544,4414,0125,0462,398266771490358142377302377114261,576

Univerity of FloridaCapital Leases2,9473,0763,1903,3113,4173,5173,6113,7013,7833,8613,9354,0044,0691,7771,9692,1502,3202,4782,6312,772

Univerity of Florida Total199,359129,095131,419109,88885,135137,333134,178121,383125,441116,939127,886133,622139,394137,683142,770116,81878,19880,96574,16078,210

Direct Support OrganizationsBonds Payable91,210117,895122,890111,845115,715122,405126,815118,350119,915111,410112,93579,30027,70028,40029,10029,70029,94630,53031,11426,899

Direct Support OrganizationsLoans & Notes15,9020000000000000000000

Direct Support OrganizationsCapital Leases00000000000004906,7241,1185479

Direct Support OrganizationsInstallment Debt00000000000000000001,774

Direct Support Organizations Total107,112117,895122,890111,845115,715122,405126,815118,350119,915111,410112,93579,30027,70028,44929,10036,42431,06430,58431,12128,682

HSC Affiliates and HospitalsBonds Payable730,939783,405625,682646,471621,388645,703702,720593,038430,394445,562466,002441,997286,296284,929291,390288,035307,121322,476160,758168,094

HSC Affiliates and HospitalsInstallment Debt000000000001,7864,0922,9423,9602,2920000

HSC Affiliates and HospitalsCapital Leases8,14110,34710,8583,1484,7388,4867,0306,9197,0717,59911,60813,2537,3867,5886,4136,7246,5286,34803,457

HSC Affiliates and HospitalsLoans & Notes8,0008,000000000000000000000

HSC Affiliates and Hospitals Total747,080801,752636,540649,619626,126654,189709,750599,957437,465453,161477,610457,036297,774295,459301,763297,051313,649328,824160,758171,551

Grand Total1,053,5511,048,742890,849871,352826,976913,927970,743839,690682,821681,510718,431669,958464,868461,591473,633450,293422,911440,373266,039278,443


19951996199719981999200020012002200320042005200620072008200920102011201220132014

University of Florida$ 78,210$ 74,160$ 80,965$ 78,198$ 116,818$ 142,770$ 137,683$ 139,394$ 133,622$ 127,886$ 116,939$ 125,441$ 121,383$ 134,178$ 137,333$ 85,135$ 109,888$ 131,419$ 129,095$ 199,359

Direct Support Organizations$ 28,682$ 31,121$ 30,584$ 31,064$ 36,424$ 29,100$ 28,449$ 27,700$ 79,300$ 112,935$ 111,410$ 119,915$ 118,350$ 126,815$ 122,405$ 115,715$ 111,845$ 122,890$ 117,895$ 107,112

HSC Affiliates and Hospitals$ 171,551$ 160,758$ 328,824$ 313,649$ 297,051$ 301,763$ 295,459$ 297,774$ 457,036$ 477,610$ 453,161$ 437,465$ 599,957$ 709,750$ 654,189$ 626,126$ 649,619$ 636,540$ 801,752$ 747,080



University of Florida

Direct Support Organizations

HSC Affiliates and Hospitals

Capital Asset-Related Debt

Financial Aid Administered

(In Thousands)

2005200620072008200920102011201220132014

Federal Agencies316,608324,437360,964322,642336,523487,454416,916423,116416,588465,297

State and Local Agencies61,95960,355102,93294,12186,03961,16561,19348,51244,58752,075

Others115,358133,984119,150144,889151,470129,608141,014173,057179,477184,325

Totals493,925518,776583,046561,652574,032678,227619,123644,685640,652701,697

2005316,60861,959115,358493,925

2006324,43760,355133,984518,776

2007360,964102,932119,150583,046

2008322,64294,121144,889561,652

2009336,52386,039151,470574,032

2010487,45461,165129,608678,227

2011416,91661,193141,014619,123

2012423,11648,512173,057644,685

2013416,58844,587179,477640,652

2014465,29752,075184,325701,697


Federal Agencies

State and Local Agencies

Others

Research Awards

SNP 2014


(In Thousands)

2005200620072008200920102011201220132014


Florida State Agencies71,21179,30785,52089,60994,26088,87886,03069,4056781369,107

Others75,06090,42396,987104,37693,899107,737116,673125,335133,389128,817

Totals326,769351,980376,376409,474429,476469,573498,715493,960507,969502,117

2005180,49871,21175,060

2006182,25079,30790,423

2007193,86985,52096,987

2008215,48989,609104,376

2009241,31794,26093,899

2010272,95888,878107,737

2011296,01286,030116,673

2012299,22069,405125,335

2013306,76767813133,389

2014304,19369,107128,817

2005200620072008200920102011201220132014

180,498182,250193,869215,489241,317272,958296,012299,220306,767304,193

71,21179,30785,52089,60994,26088,87886,03069,4056781369,107

75,06090,42396,987104,37693,899107,737116,673125,335133,389128,817

SNP 2014

Federal Agencies

Florida State Agencies

Others




STATEMENT OF NET POSITION

as of June 30, 2014




20142013OrganizationsCenter Affiliatesand Others

ASSETS

Current Assets:

Cash and Cash Equivalents (Note 1)$ 152$ 285$ 26,604$ 55,716$ 60,944

Unexpended General Revenue Releases

Investments (Note 3)1,161,0211,071,694192,2896,218176,322

Accounts Receivable, Net (Note 4)96,63090,802112,85883,406263,318

Loans and Notes Receivable, Net (Note 4)2,7872,821---

Due From State (Note 5)45,97714,795--15,781

Due From Component Units/University (Note 6)25,13826,50346,53816,17060,318

Inventories (Note 7)4,6904,57042-24,446

Deposits - Other

Other Current Assets2,1301,9646,1972,49540,558

Total Current Assets1,338,5251,213,434384,528164,005641,687

Noncurrent Assets:

Restricted Cash and Cash Equivalents (Note 1)14219,681-19,500

Endowment Investments

Unexpended General Revenue Releases - Restricted-

Restricted Investments (Note 3)152,510104,0531,829,86319,513343,685


Depreciable Capital Assets, Net (Note 8)1,568,9051,633,266178,72559,745768,822

Nondepreciable Capital Assets (Note 8)145,86053,07277,6248,744130,554

Other Noncurrent Assets631,0401084,745218,550

Total Noncurrent Assets1,904,3271,827,8272,096,00192,7471,481,111

TOTAL ASSETS3,242,8523,041,2612,480,529256,7522,122,798

DEFERRED OUTFLOWS OF RESOURCES

Accumulated Decrease in Fair Value of Interest Rate Swap Agreements----42,052

Losses on Debt Refunding----631

TOTAL DEFERRED OUTFLOWS OF RESOURCES----42,683

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES$ 3,242,852$ 3,041,261$ 2,480,529$ 256,752$ 2,165,481

LIABILITIES

Current Liabilities:

Accounts Payable$ 64,133$ 66,992$ 14,429$ 20,386$ 152,584

Salaries and Wages Payable24,30419,2523,8507,09071,141

Due to State-

Due To Component Units/University (Note 6)46,54780,17466,59812,82747,471

Unearned Revenue (Note 10)29,53625,43062,0141,704-

Estimated Claims Payable

Deposits Held in Custody19,05516,086-81-

Obligations Under Securities Lending and Repurchase Agreements-

Other Current Liabilities (Note 11)2017,1332,885--

Long-Term Liabilities - Current Portion: (Note 12)

Capital Improvement Debt Payable8,6057,307---

Bonds Payable--10,5802,01123,687

Loans and Notes Payable281-14,430--

Installment Purchase Agreements Payable1,263846---

Capital Leases Payable137129-1932,339

Compensated Absences Payable11,6589,143244--

Liability for Self-Insured Claims9,19611,59626,240--

Total Current Liabilities214,916244,088201,27044,292297,222

Noncurrent Liabilities: (Note 12)


Bonds Payable--80,63033,036672,205

Loans and Notes Payable11,1925,0001,4728,000-


Capital Leases Payable2,8102,947-3495,260

Compensated Absences Payable114,293104,3053,119--

Other Postemployment Benefits Payable180,690139,775--2,386

Liability for Self-Insured Claims36,60644,551---

Other Noncurrent Liabilities18,48218,76822,392-71,028

Total Noncurrent Liabilities539,144428,212107,61341,385750,879

TOTAL LIABILITIES754,060672,300308,88385,6771,048,101

DEFERRED INFLOWS OF RESOURCES

Accumulated Increase in Fair Value of Interest Rate Swap Agreements

Gains on Debt Refunding----11,668

TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES754,060672,300308,88385,6771,059,769

NET POSITION

Net Investment in Capital Assets1,565,3131,554,445117,56024,901195,225

Restricted:

Nonexpendable:

Endowment--1,196,686-97

Expendable:

Endowment--380,075-11,931

Loans36,31735,853---

Capital Projects79,29464,217---

Debt Service4,4335,453---

Other654,866589,690326,610--

Unrestricted148,569119,303150,715146,174898,459

TOTAL NET POSITION2,488,7922,368,9612,171,646171,0751,105,712

TOTAL LIABILITIES AND NET POSITION$ 3,242,852$ 3,041,261$ 2,480,529$ 256,752$ 2,165,481

The accompanying notes are an integral part of these financial statements.

Do Total Assets = Total Liabilities and Net Assets?00000

Griswold,Edwin C:plus 1

Griswold,Edwin C:Less 1



Lecomte,Patrice:minus 1

Griswold,Edwin C:less 3 to balance w adj to liab on tables

Griswold,Edwin C:PLUS 1

Griswold,Edwin C:LESS 1


THEUN

IVERSITYO

FFLORIDA

UF Enterprise Expenses FY15

Employee Compensation and Benefits, $2,706,048 , 54%

Service and Supplies, $1,634,818 , 32.4%

Space - Utilities and Communication, $67,727 , 1%

Space - Debt Service, $35,648 , 1%

Space - Depreciation, $237,594 , 5%

Scholarship Allowance and Scholarships, Fellowships and

Waivers, $230,067 , 5%Unexpended Future

Obligations, $128,000 , 2%

Chart1


Total $5.04 Billion

SRECNP 2014



STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION1235

for the Fiscal Year Ended June 30, 2014




2013-14OrganizationsCenter Affiliatesand OthersTOTAL 2014Classification

OPERATING REVENUES

Student Tuition and Fees$ 508,448$ -$ -$ -508,448Tuition

Scholarship Allowances(149,793)---(149,793)

Student Tuition and Fees, Net of Scholarship Allowances358,655---358,655

Federal Grants and Contracts366,315---366,315Sponsored Programs

State and Local Grants and Contracts44,638---44,638Sponsored Programs

Nongovernmental Grants and Contracts118,723---118,723Sponsored Programs

Sales and Services of Auxiliary Enterprises (Note 13)129,942---129,942Auxiliary Sales and Others

Sales and Services of Educational Departments52,012---52,012Auxiliary Sales and Others

Sales and Services of Component Units-65,191--65,191Component Unit Sales (mainly UAA and Gator Boosters)

Hospital Revenues--663,0831,587,6992,250,782Hospitals and Physician Practice Associations

Gifts and Donations - Component Units-99,305--99,305Gifts

Royalties and Licensing Fees - Component Units-29,958--29,958Component Unit Sales

Interest on Loans and Notes Receivable1,178---1,178Auxiliary Sales and Others

Other Operating Revenues2,38141127,89644,86875,556Auxiliary Sales and Others, Component Unit Sales, Hospitals and Physician Practice Associations

Total Operating Revenues1,073,844194,865690,9791,632,5673,742,048Total Operating Revenue - based on tution gross and after transfer elimination

OPERATING EXPENSES

Employee Compensation and Benefits1,724,9141,43779,505793,7492,599,605

Services and Supplies472,507159,06555,444722,3121,409,328

Utilities and Communications62,761---62,761

Scholarships, Fellowships and Waivers, Net78,418---78,418

Depreciation123,1149,9447,80377,220218,081

Self-Insured Claims and Expenses (Note 16)(5,784)---(5,784)

Other Component Unit Operating Expenses-----

Total Operating Expenses (Note 18)2,455,930170,446142,7521,593,2814,362,409

Operating Income (Loss)(1,382,086)24,419548,22739,286

NONOPERATING REVENUES (EXPENSES)

Noncapital State Appropriations605,8906,912-7,050619,852State Appropriations

Federal and State Student Financial Aid116,994---116,994Student Financial Aid

Noncapital Grants, Contracts, and Gifts4,401---4,401Sponsored Programs

Investment Income37,474202,79258337,587278,436Investment Income

Net Increase (Decrease) in the Fair Value of Investments32,52412,736(412)3,45248,300Investment Income

Investment Expenses(3,598)(793)(876)(7,586)(12,853)Investment Income

Other Nonoperating Revenues42246,210-4,85851,490Auxiliary Sales and Others, Component Unit Sales, Hospitals and Physician Practice Associations

Gain (Loss) on Disposal of Capital Assets(2,699)1,219(655)(2,047)(4,182)

Interest on Capital Asset-Related Debt(8,048)(2,349)-(20,372)(30,769)

Other Nonoperating Expenses(2,948)485(41,334)42,809(988)

Net Nonoperating Revenues (Expenses)780,412267,212(42,694)65,7511,106,620Total Nonoperating Revenue - after transfer elimination

4,848,668Total Revenue

Income (Loss) Before Other Revenues, Expenses,

Gains, or Losses(601,674)291,631505,533105,037

Capital State Appropriations43,667---43,667

Capital Grants, Contracts, Donations, and Student Fees17,707---17,707

Additions to Permanent Endowments-31,583--31,583

92,957

Total Other Revenues, Expenses, Gains, or Losses61,37431,583--

Increase (Decrease) in Net Position(540,300)323,214505,533105,037

Net Position, Beginning of Year2,368,9611,980,030158,8731,036,234

Adjustment to Beginning Net Position (Note 2)--(357)-

Adjusted Net Position, Beginning of Year, as Restated2,368,9611,980,030158,5161,036,234

Net Position, End of Year$ 1,828,661$ 2,303,244$ 664,049$ 1,141,271





Hospitals and Physician Practice Associations$ - 0$ - 0$ 2,328,404$ 2,328,40448%

State Appropriation (Noncapital)$ 605,890$ 6,912$ 7,050$ 619,85213%

Sponsored Programs$ 534,077$ - 0$ - 0$ 534,07711%

Student Tuition and Fees (Gross)$ 508,448$ - 0$ - 0$ 508,44810%

Investment Income (Net)$ 66,400$ 214,735$ 32,748$ 313,8836%

Auxiliary Sales and Other$ 185,935$ - 0$ - 0$ 185,9354%

Component Unit Sales$ - 0$ 141,770$ - 0$ 141,7703%

Federal and State Student Financial Aid$ 116,994$ - 0$ - 0$ 116,9942%

Gifts$ - 0$ 99,305$ - 0$ 99,3052%

Total2,017,744462,7222,368,2024,848,668

Reconciliation with BOT Welcome Stats

(Less) Scholarship Allowance(149,793)--(149,793)adjust Tuition and Fees line

Add Capital State Appropriation43,667--43,667adjust State Appropriations, remove (Noncapital), or add new line

Add Capital Grants, Contracts, Donations, and Student Fees17,707--17,707adjust Sponsored Programs line

Add Addition to Permanent Endowment31,583--31,583adjust Gifts

Remove Interest on Loans and Notes Receivable from Aux(1,178)adjust Auxiliary

Add Interest on Loans and Notes Receivable to Investment1,178adjust Investment

Add Transfers Elimination (Omitted)

Component Unit Sales-53,915-53,915adjust CU sales

Gifts-1,235-1,235adjust Gifts

Hospitals and Physician Practice Associations--155,632155,632adjust Hospital revenue

Total Revenue per BOT Welcome Stats1,960,908517,8722,523,8345,002,614





[], [], []

Revenue Sources




Hospitals and Physician Practice Associations$ - 002,328,4042,328,40448%

State Appropriation (Noncapital)$ 605,8906,9127,050619,85213%

Sponsored Programs$ 534,07700534,07711%

Student Tuition and Fees (Gross)$ 508,44800508,44810%

Investment Income (Net)$ 66,400214,73532,748313,8836%

Auxiliary Sales and Other$ 185,93500185,9354%

Component Unit Sales$ - 0141,7700141,7703%

Federal and State Student Financial Aid$ 116,99400116,9942%

Gifts$ - 099,305099,3052%

Total2,017,744462,7222,368,2024,848,668

AFR Reconciliation


Nonoperating Revenue and Expenses575,172

plus Nonoperating Expenses not included above643,043


(less) Transfers Elimination(908,925)




Revenue Sources


[], [], []

Size and Scale

[], [], []


Size and Scale: FY14 Key Facts

University and Component Units

Total Revenues$4.8billion

Investment Pool$3.9billion

Book Value of Capital Assets$2.9billion

Employment - headcount26,489UF only, as of 3/20/15

Research Expenditures$709million

Lecomte,Patrice:HERD survey

Expenses UF Only



UF%


Sponsored Programs$ 1,197,74344.7%



Auxiliary Sales and Other$ 185,9356.9%


Total2,681,410

Less Income Before Other Revenues, Expenses, Gains, or Losses(58,457)

Net2,622,953Matches "People and Space" Expenses

AFR Reconciliation


Nonoperating Revenue871,747





Expenses UF Only


[], [], []


Expenses - FY14


2014SourceGASB Type

Employee Compensation and Benefits$ 1,724,914AFROperating

General Expenses$ 475,905AFROperating and Nonoperating

Space - Utilities and Communication$ 62,761CWOperating

Space - Debt Service$ 8,048AFRNonoperating

Space - Depreciation$ 123,114AFROperating

Scholarship Allowance and Scholarships, Fellowships and Waivers$ 228,211AFRNonoperating


CW = Crosswalk

General Expenses

Subcontracts (C&G)60,668

Contractual Expenses129,956

Furniture, Equipment and Supplies119,325

Travel45,064

Other Expenses65,734

Total General Expenses420,747


Total UF Operating Expenses2,455,930

Total UF Nonoperating Expenses17,230

(less) Operating except General identified above(1,997,255)

General Expenses475,905

AFR Reconciliation

Operating Expenses2,455,930


Scholarship Allowance149,793




[], [], []

Financial Aid

Functional Classifications


Instruction$ 686,760

Research584,734

Public Service432,100

Academic Support167,247

Institutional Support162,253

Depreciation123,114

Auxiliary Operations112,307

Operation and Maintenance of Plant94,905

Scholarships, Fellowships and Waivers, Net206,452

Student Services35,851


Total Expenses$ 2,622,953

Expenses 3 years

Financial Aid


Federal - Pell Grants47,492

Other Federal Grants2,982

Bright Future59,722

Other State Programs9,301

Departmental Scholarships32,907

Institutional Scholarships34,687

Fee Waivers41,120

Scholarship Allowance and Scholarships, Fellowships and Waivers228,211

Gross Tuition

People and Space - FY14


201420132012SourceGASB Type

Employee Compensation and Benefits1,724,9141,619,8681,522,935AFROperating

General Expenses420,747415,794459,451AFROperating and Nonoperating

Space - Utilities and Rentals73,03375,46677,117CWOperating

Space - Repair and Maintenance44,88646,10753,913CWOperating

Space - Debt Service8,0486,1345,483AFRNonoperating

Space - Depreciation123,114121,356116,697AFROperating

Scholarships, Fellowships and Waivers, Net Expense228,211230,088222,364AFRNonoperating

Total Expenses2,622,9532,514,8132,457,960

CW = Crosswalk

Above Expenses associated with Sponsor Research495,452511,376534,947


Total UF Operating Expenses2,455,9302,346,5892,244,498

Total UF Nonoperating Expenses17,23020,16071,908

(less) Operating except General identified above(2,052,413)(1,950,955)(1,856,955)

General Expenses420,747415,794459,451

AFR Reconciliation

Operating Expenses2,455,9302,346,5892,244,498

Nonoperating Expenses17,23020,16071,908

Scholarship Allowance149,793148,064141,554

Total Expenses2,622,9532,514,8132,457,960

State Appropriation


2005200620072008200920102011201220132014

Student Tuition and Fees (Gross)$ 242,921$ 255,373$ 278,381$ 310,893$ 344,001$ 383,204$ 424,462$ 462,050$ 500,508$ 508,448


State Appropriation



Student Tuition and Fees (Gross) and State Appropriations

Debt 20 Year


2005200620072008200920102011201220132014


Capital Appropriation$ 42,745$ 68,716$ 115,309$ 152,474$ 83,702$ 37,969$ 60,259$ 6,060$ 9,464$ 43,667

Total State Appropriation$ 599,831$ 665,030$ 817,598$ 815,048$ 704,670$ 590,169$ 639,382$ 533,940$ 494,943$ 649,557

Debt 20 Year


Capital Appropriation

Total State Appropriation


EntityType of Debt20142013201220112010200920082007200620052004200320022001200019991998199719961995

Univerity of FloridaCIDP181,579119,401126,284104,50779,164129,375126,555112,636119,260112,812123,180129,128134,967135,764140,424114,36675,50178,47671,10373,862

Univerity of FloridaLoans & Notes11,4735,000000000000000000000

Univerity of FloridaInstallment Debt3,3601,6181,9452,0702,5544,4414,0125,0462,398266771490358142377302377114261,576

Univerity of FloridaCapital Leases2,9473,0763,1903,3113,4173,5173,6113,7013,7833,8613,9354,0044,0691,7771,9692,1502,3202,4782,6312,772

Univerity of Florida Total199,359129,095131,419109,88885,135137,333134,178121,383125,441116,939127,886133,622139,394137,683142,770116,81878,19880,96574,16078,210

Direct Support OrganizationsBonds Payable91,210117,895122,890111,845115,715122,405126,815118,350119,915111,410112,93579,30027,70028,40029,10029,70029,94630,53031,11426,899

Direct Support OrganizationsLoans & Notes15,9020000000000000000000

Direct Support OrganizationsCapital Leases00000000000004906,7241,1185479

Direct Support OrganizationsInstallment Debt00000000000000000001,774

Direct Support Organizations Total107,112117,895122,890111,845115,715122,405126,815118,350119,915111,410112,93579,30027,70028,44929,10036,42431,06430,58431,12128,682

HSC Affiliates and HospitalsBonds Payable730,939783,405625,682646,471621,388645,703702,720593,038430,394445,562466,002441,997286,296284,929291,390288,035307,121322,476160,758168,094

HSC Affiliates and HospitalsInstallment Debt000000000001,7864,0922,9423,9602,2920000

HSC Affiliates and HospitalsCapital Leases8,14110,34710,8583,1484,7388,4867,0306,9197,0717,59911,60813,2537,3867,5886,4136,7246,5286,34803,457

HSC Affiliates and HospitalsLoans & Notes8,0008,000000000000000000000

HSC Affiliates and Hospitals Total747,080801,752636,540649,619626,126654,189709,750599,957437,465453,161477,610457,036297,774295,459301,763297,051313,649328,824160,758171,551

Grand Total1,053,5511,048,742890,849871,352826,976913,927970,743839,690682,821681,510718,431669,958464,868461,591473,633450,293422,911440,373266,039278,443


19951996199719981999200020012002200320042005200620072008200920102011201220132014

University of Florida$ 78,210$ 74,160$ 80,965$ 78,198$ 116,818$ 142,770$ 137,683$ 139,394$ 133,622$ 127,886$ 116,939$ 125,441$ 121,383$ 134,178$ 137,333$ 85,135$ 109,888$ 131,419$ 129,095$ 199,359

Direct Support Organizations$ 28,682$ 31,121$ 30,584$ 31,064$ 36,424$ 29,100$ 28,449$ 27,700$ 79,300$ 112,935$ 111,410$ 119,915$ 118,350$ 126,815$ 122,405$ 115,715$ 111,845$ 122,890$ 117,895$ 107,112

HSC Affiliates and Hospitals$ 171,551$ 160,758$ 328,824$ 313,649$ 297,051$ 301,763$ 295,459$ 297,774$ 457,036$ 477,610$ 453,161$ 437,465$ 599,957$ 709,750$ 654,189$ 626,126$ 649,619$ 636,540$ 801,752$ 747,080



University of Florida

Direct Support Organizations

HSC Affiliates and Hospitals

Capital Asset-Related Debt


(In Thousands)

2005200620072008200920102011201220132014


State and Local Agencies61,95960,355102,93294,12186,03961,16561,19348,51244,58752,075

Others115,358133,984119,150144,889151,470129,608141,014173,057179,477184,325

Totals493,925518,776583,046561,652574,032678,227619,123644,685640,652701,697

2005316,60861,959115,358493,925

2006324,43760,355133,984518,776

2007360,964102,932119,150583,046

2008322,64294,121144,889561,652

2009336,52386,039151,470574,032

2010487,45461,165129,608678,227

2011416,91661,193141,014619,123

2012423,11648,512173,057644,685

2013416,58844,587179,477640,652

2014465,29752,075184,325701,697


Federal Agencies

State and Local Agencies

Others

Research Awards

SNP 2014


(In Thousands)

2005200620072008200920102011201220132014


Florida State Agencies71,21179,30785,52089,60994,26088,87886,03069,4056781369,107

Others75,06090,42396,987104,37693,899107,737116,673125,335133,389128,817

Totals326,769351,980376,376409,474429,476469,573498,715493,960507,969502,117

2005180,49871,21175,060

2006182,25079,30790,423

2007193,86985,52096,987

2008215,48989,609104,376

2009241,31794,26093,899

2010272,95888,878107,737

2011296,01286,030116,673

2012299,22069,405125,335

2013306,76767813133,389

2014304,19369,107128,817

2005200620072008200920102011201220132014

180,498182,250193,869215,489241,317272,958296,012299,220306,767304,193

71,21179,30785,52089,60994,26088,87886,03069,4056781369,107

75,06090,42396,987104,37693,899107,737116,673125,335133,389128,817

SNP 2014

Federal Agencies

Florida State Agencies

Others




STATEMENT OF NET POSITION

as of June 30, 2014




20142013OrganizationsCenter Affiliatesand Others

ASSETS

Current Assets:

Cash and Cash Equivalents (Note 1)$ 152$ 285$ 26,604$ 55,716$ 60,944

Unexpended General Revenue Releases

Investments (Note 3)1,161,0211,071,694192,2896,218176,322

Accounts Receivable, Net (Note 4)96,63090,802112,85883,406263,318


Due From State (Note 5)45,97714,795--15,781

Due From Component Units/University (Note 6)25,13826,50346,53816,17060,318

Inventories (Note 7)4,6904,57042-24,446

Deposits - Other

Other Current Assets2,1301,9646,1972,49540,558

Total Current Assets1,338,5251,213,434384,528164,005641,687

Noncurrent Assets:

Restricted Cash and Cash Equivalents (Note 1)14219,681-19,500

Endowment Investments

Unexpended General Revenue Releases - Restricted-

Restricted Investments (Note 3)152,510104,0531,829,86319,513343,685


Depreciable Capital Assets, Net (Note 8)1,568,9051,633,266178,72559,745768,822

Nondepreciable Capital Assets (Note 8)145,86053,07277,6248,744130,554

Other Noncurrent Assets631,0401084,745218,550

Total Noncurrent Assets1,904,3271,827,8272,096,00192,7471,481,111

TOTAL ASSETS3,242,8523,041,2612,480,529256,7522,122,798

DEFERRED OUTFLOWS OF RESOURCES

Accumulated Decrease in Fair Value of Interest Rate Swap Agreements----42,052

Losses on Debt Refunding----631

TOTAL DEFERRED OUTFLOWS OF RESOURCES----42,683

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES$ 3,242,852$ 3,041,261$ 2,480,529$ 256,752$ 2,165,481

LIABILITIES

Current Liabilities:

Accounts Payable$ 64,133$ 66,992$ 14,429$ 20,386$ 152,584

Salaries and Wages Payable24,30419,2523,8507,09071,141

Due to State-

Due To Component Units/University (Note 6)46,54780,17466,59812,82747,471

Unearned Revenue (Note 10)29,53625,43062,0141,704-

Estimated Claims Payable

Deposits Held in Custody19,05516,086-81-

Obligations Under Securities Lending and Repurchase Agreements-

Other Current Liabilities (Note 11)2017,1332,885--

Long-Term Liabilities - Current Portion: (Note 12)


Bonds Payable--10,5802,01123,687

Loans and Notes Payable281-14,430--


Capital Leases Payable137129-1932,339

Compensated Absences Payable11,6589,143244--

Liability for Self-Insured Claims9,19611,59626,240--

Total Current Liabilities214,916244,088201,27044,292297,222

Noncurrent Liabilities: (Note 12)


Bonds Payable--80,63033,036672,205

Loans and Notes Payable11,1925,0001,4728,000-


Capital Leases Payable2,8102,947-3495,260

Compensated Absences Payable114,293104,3053,119--

Other Postemployment Benefits Payable180,690139,775--2,386

Liability for Self-Insured Claims36,60644,551---

Other Noncurrent Liabilities18,48218,76822,392-71,028

Total Noncurrent Liabilities539,144428,212107,61341,385750,879

TOTAL LIABILITIES754,060672,300308,88385,6771,048,101

DEFERRED INFLOWS OF RESOURCES

Accumulated Increase in Fair Value of Interest Rate Swap Agreements

Gains on Debt Refunding----11,668

TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES754,060672,300308,88385,6771,059,769

NET POSITION

Net Investment in Capital Assets1,565,3131,554,445117,56024,901195,225

Restricted:

Nonexpendable:

Endowment--1,196,686-97

Expendable:

Endowment--380,075-11,931

Loans36,31735,853---

Capital Projects79,29464,217---

Debt Service4,4335,453---

Other654,866589,690326,610--

Unrestricted148,569119,303150,715146,174898,459

TOTAL NET POSITION2,488,7922,368,9612,171,646171,0751,105,712

TOTAL LIABILITIES AND NET POSITION$ 3,242,852$ 3,041,261$ 2,480,529$ 256,752$ 2,165,481

The accompanying notes are an integral part of these financial statements.

Do Total Assets = Total Liabilities and Net Assets?00000


Griswold,Edwin C:Less 1



Lecomte,Patrice:minus 1

Griswold,Edwin C:less 3 to balance w adj to liab on tables

Griswold,Edwin C:PLUS 1



THEUN

IVERSITYO

FFLORIDA

RCM is a financial management philosophy Focuses on operational decentralization Designed to support achievement of primary

academic priorities Budget follows priorities Aligns authority with responsibility Creates full cost view of academic operations

UF Chooses RCM

THEUN

IVERSITYO

FFLORIDA

Five Years In Provost Questions New CFO Dean’s Listening Tour

Forces for Change

Our Starting Point

CU

RRENTM

ODEL

CU

RRENTM

ODEL

Weights by college and level instead of subvention methodology. 1% Rule 70%/30% allocation of appropriation and tuition revenue. Facilities and HSC Administration cost added to colleges pre-

RCM base appropriation; weights adjusted. Student Services and Library processed as pass-through services. Grant expenditures would not be assessed overhead charges for

IT, General Administration, HSC Administration, and Facilities. Spendable endowment funds transferred into Fund 171 exempt

from overhead assessment.

Significant Decisions Made

CU

RRENTM

ODEL

IFAS Research/Extension and HSC Clinical Practice expenditures would have a reduced overhead assessment rate.

Overhead charged on expenditures instead of Employee/Student Headcount (except library and student services).

18 month (annualized) look back of both student credit hours and expenditures.

Internal sales revenue would off-set direct expenditures, eliminate double taxation.

Single payments $100,000 and subcontracts $25,000 or greater would be exempt from overhead assessment.

State Funded Centers funded “Off the Top” of State Appropriations.


CU

RRENTM

ODEL

Revenue Allocation

Appropriation Projected TuitionLess:• State Funded Centers/Student Services/Library Services• IFAS Extension and Research • Legislative Earmarks• Preeminence• Provost Commitments• Salary increases and benefit changes

= Allocable Appropriation

Less:• Strategic Fund Allocation• UG Differential Tuition

= Allocable Tuition

Weighted SCH• 70% Teaching• 30% Enrollment

Weighted SCH• 70% TeachingPro Rata Share• 30% enrollment

Minus:• Waivers• Uncollected

Total RCM Appropriation and Tuition

ABOVE THE LINE

CU

RRENTM

ODEL

Revenue Allocation

BELOW THE LINE

Non RCM Adjustments• Undergraduate Differential Tuition• Jump Start• Dean’s Start Up Packages• Faculty Enhancement• Misc. Provost Allocation• Salary Increases• Fringe Benefit Adjustments• Prior Year RCM Corrections• Legislative Earmarks• Strategic Funding• 1% Subvention• Preeminence

TOTAL STATE REVENUE

CU

RRENTM

ODEL

Revenue Allocation

Other College Revenue

Entrepreneurial Activities

Contracts and Grants

Endowment Earnings and Gifts Other

TOTAL COLLEGE REVENUE

SUPPO

RTUN

ITCO

STS

Eight Cost Pools

Information Technology Bond Payment Facility General Administration HSC Administration Sponsored Project Administration Library Student Services

SUPPO

RTUN

ITCO

STS

Expense Allocation

Estimated Budget charged to all Responsibility Centers Overhead Tax Drivers

• Colleges –18 month annualized direct expenditures –IT, Gen. Admin., HSC Admin, SPA

• Weighted square feet – Facility• Weighted student, faculty, research staff headcount -

Library• Weighted student headcount – Student Services• Three Bond Payment

SUPPO

RTUN

IT

Budget Oversight

Each year, Support Centers will explain their value and services to a Budget Review Council to justify their budget requests

Council will be composed of representatives from colleges, VP areas, and faculty senate• 12-15, with rotating membership

Every five to six years, each Support Center will go through a “zero-based” budget review

STRATEGIC

FUN

D

Strategic Fund

Designed to support new or key initiatives• Central fund funded by tuition increases as well as

Pepsi fund, logo fund, etc.• Used at the discretion of the President and Senior

Vice Presidents

WEIG

HTS

WeightsCollege Name Lower Upper Grad I Grad II Grad III

Agricultural and Natural Resources 1.366 2.323 8.197 11.381

Business Administration 0.897 1.484 6.356 20.123

Dentistry 7.743 4.425 19.911

Design, Construction, and Planning 2.730 3.219 6.429 8.476

DOCE 2.241 10.430

Education 0.480 1.609 4.408 7.670

Engineering 1.623 4.842 9.932 13.119

Fine Arts 3.321 4.666 15.446 15.463

Health & Human Performance 1.318 1.596 6.663 10.371

Journalism & Communications 1.385 1.591 7.486 12.379

Latin American Studies 8.107 23.919 39.594 42.213

Law 7.002 20.874

Liberal Arts & Sciences 1.727 2.688 9.024 10.640

Medicine 6.844 7.018 14.011 26.453

Nursing 6.507 3.718 11.670

Pharmacy 6.975 3.986 12.510

Public Health & Health Professions 0.793 5.073 3.277 9.033

Veterinary Medicine 7.503 4.288 13.458 25.726

CO

NCERN

SW

ITHC

URREN

TMO

DEL

If it Was Working Ideally…

What would it look like?

?

How do we best align RCM with what we want to incentivize? The university has two special structures: These special

structures have local business models that often do not align with RCM

Another special situation presents in the College of Liberal Arts & Sciences. It may present an attractive target for “poaching” students and credit hours. How to ensure appropriate funding for the college in the RCM model?

Related to that, how do we minimize colleges battling for undergraduates?

Does the phrase “each tub on its own bottom” really make sense in a large public institution like UF, where there is substantial cross-subsidization? If the goal of RCM is really to have each tub on its own bottom, what do you do with the colleges that are scraping bottom?

We are aware that there are multiple versions of RCM. Do you have opinions about which ones work best?

Provost QuestionsC

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We may be the only public institution to install a full weighted cost of delivery model. Do you have opinions about the pros and cons of the model?

Comments on the best strategic fund model? Moving forward, what are the best models for the future? We have a centralized admissions process. Some deans have

spoken in favor of a decentralized admissions process, which would change radically the culture and processes of the institution.

How do you put planning and predictability into the model? Can RCM work with all the constraints under which the colleges

currently operate? Constraints are imposed by the state statutes and regulations and local policies.

Provost QuestionsC

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Deans’ Common Concerns with Current Model

• Weights• Classification of space• Calculation too complicated• Budget is a surprise each year• Can’t predict outcomes of decisions• Degree production not incentivized• Retention not incentivized• Interdisciplinary programs not

incentivized• Research not incentivized (linear tax)• IDC vs SPA Tax• Tax Driver/Assessment Metrics

• Start up issues for entrepreneurial activities

• Capped enrollment• Tuition allocation• Waivers• Self funded courses lead

to faculty overload• Tax creep• Subvention• Strategic Fund

THEJOU

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Onward We Go

THEJOU

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RCM Committee Role and Responsibility

The Steering Committee: Defines the scope of the review process, project goals and

guiding principles. Ensures that the resulting project plan, implementation

efforts, and resources required align with the University’s strategic goals and initiatives.

Provides leadership and guidance for any decisions, issues, and risks that may be escalated by the RCM Task Force.

THEJOU

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Desired Outcomes and Guiding Principles

Incentivize Specific Activities

Simplify the Model

Model should be:

• Predictable

• Ensures alignment with University strategic goals

• Provides Clarity

Creation of Dedicated Provost Strategic Fund

THEJOU

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Scope of Review

Identify what is working

Review weights and their use

Review special deals

Review methodology for Base Budget and Subvention

Review methods for funding Provost Strategic Fund

Review how Tuition is allocated

Review performance metrics used by State

Review dependence on State timelines

Review Support Unit budgeting process

Provide ranked options/recommendations for changes to current model

THEJOU

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RCM Task Force Role and Responsibility

The Task Force: Will be responsible for performing a review of the current

RCM Budget Model and related business processes. Will identify the specific work streams to be carried out

based on guidance provided by the Steering Committee. Will create working groups as needed and make all work

assignments. Will provide guidance and support for participation from

within the university to enable appropriate decision making.

Will escalate issues to the Steering Committee when appropriate.

Will provide monthly status reports to the Steering Committee.

THEJOU

RNEY

Task Force MembersDirector of FinanceOffice of the DeanCollege of Journalism & Communications

Associate Vice President and DirectorHousing & Residence EducationDivision of Student Affairs

Dean, College of Liberal Arts and SciencesProfessor, Department of Chemistry

Senior Associate Dean & Director Hough Graduate ProgramsGeorge W. and Lisa O. Etheridge, Jr. ProfessorWarrington College of Business

Director, Office of Budget and FinanceIFAS

Assistant DeanFinance & Human ResourcesCollege of Public Health and Health Professions (PHHP)

Business ManagerCollege of Health and Human Performance (HHP)

Associate Dean for Academic AffairsProfessor of EducationCollege of Education

Associate Vice President, Finance and PlanningOffice of the Sr. Vice President for Health Affairs

Dean, College of Medicine

Dean, College of the Arts

Vice President of Student AffairsDivision of Student Affairs

Associate Dean for Administrative and Fiscal AffairsLevin College of Law

THEJOU

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Administrative MemoIn an effort to ensure UF’s budgeting process meets the needs of the university, the Office of the Vice President and Chief Financial Officer is conducting a 5-year review of the university’s budget model.

A steering committee composed of the university deans and vice presidents has been established to provide leadership and guidance for this effort. A task force composed of key representatives from throughout campus will work at the direction of the steering committee to review the current budget model and related business processes. For a list of the steering committee and task force membership, please visit the CFO website at cfo.ufl.edu.

The scope of this review is to identify what is working with the current budget model as well as how it might be improved in the areas of revenue and expense allocation. The review process is expected to occur over the summer through early fall—with recommendations provided to the Sr. Vice Presidents by the end of the calendar year.

If you have questions or would like more information please contact Greg DuBois, Vice President for Finance and Planning, at [email protected].

mailto:[email protected]

THEJOU

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Process and Timeline

Standing bi-weekly two hour long meetings Began in May with Steering Committee meetings Task force began work July 14

THEWO

RK

Research

John Curry’s responses to Provost Questions Phone Consultation with Malcolm White/Andrew Law - Huron EAB Consulting Engagement White Paper Review – Ohio State University, University of

Michigan, University of Illinois, Indiana University

THEWO

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John Curry’s Responses

THEWO

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Malcolm White/Andrew Law Conversation

THEWO

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University of Illinois

Very much like UF model in their early years – too much funded off the top outside of the model.

THEWO

RK

Indiana University

Support Units keep 40% of Carryforward.

Constraint model for Support Unit budgets.

THEWO

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University of Michigan

Guiding Tenant –General Fund revenues all flow to the central administration and it is the Provost’s task to determine budget allocations –model is simply an aid in developing the General Fund Budgets.

THEWO

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University of Minnesota

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Ohio State University

Modified RCM model plus strategic investment of central funds. College Budget – Present Budget Allocation +/- Net Marginal

Revenue. Central tax funds Support Units. Compensation increases funded from college budgets. Model incentivizes colleges to teach more credit hours, increase

research activity, and release unneeded space.

THEWO

RK

EAB summary of reasons for peer changes: incentivize growth, improve budget transparency, control costs

EAB lessons learned:• Don’t Blame RCM for Everything • Keep It Simple - improves predictability• Budget Models Alone Don’t Solve the Problem • Growth Is the Only Solution

Education Advisory Board Summary

THEWO

RK

Committee Take-Aways

• General fund revenues all flow to central administration• Auxiliary unit’s budget lie outside of the general fund but are

taxed

• Activity based units receive a significant portion of their revenue as a function of what they do (Tuition & IDC)

• State subsidy used to help pay for General Fund Supplement and General Operating Budget

• Central Administrative units – Provost sets budget• Activity based units pay a set of taxes • Taxes based on Revenues

THEWO

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Things Considered Along the Way

THEWO

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IDC AND

SPA

Indirect Cost Recoveryand

Sponsored Program Administration

SPA SUBCO

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SPA Subcommittee Role and Responsibility

The SPA subcommittee is responsible for a focused review of the Sponsored Projects Administration portion of the budget model and providing recommendations for changes to the Task Force.

Research enterprise is a significant factor at the University, and SPA is the only cost pool that had multiple components

Biweekly standing meetings - two hours

Work began September 16

Subcommittee Members

Dean, College of EngineeringAssociate Dean for Administration & Faculty Affairs, University LibrariesSr. Assoc. Dean, Div. of Grad Studies & Res, College of JournalismAssociate Dean of Research, HHPDirector, Office of Budget and Finance, IFASAssociate Dean for Research & Planning, PHHPAssociate Dean for Research & Grad Education, PharmacyAssociate Dean for Research & Scholarship, College of NursingAssociate Dean for Research and Graduate Programs, DCPAssociate Dean for Research, College of DentistrySr. Associate Dean & Director Hough Graduate Programs, BusinessAssociate Dean for Faculty Development, College of LawAssociate Dean for Research and Faculty Development, EducationAssistant Dean for Research & Faculty Programs, College of the Arts

SPA SUBCO

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Desired Outcomes

Minimize disincentives within expenditure-based model for accepting low IDC bearing grants and contracts

Simpler and more predictable model for IDC distribution

Minimize significant deviations to historical revenue streams during the transition to a new IDC model

Distribute returned IDC in a way that supports research operations and infrastructure, factoring in research costs and other available resources within units

SPA SUBCO

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SPA CU

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Grant expenditures would not be assessed overhead charges for IT, Gen Admin, HSC Admin, and Facilities.

Overhead charged on expenditures instead of Employee/Student Headcount or Revenue.

18 month (annualized) look back on expenditures. Training Grants earning less than 10% IDC will be exempt from

overhead assessment. Subcontracts $25,000 or greater would be exempt from

overhead assessment. Sub-pools would be used for IRB-1, IRB-2, IRB-3, IACUC, Animal

Care Services and Biostatistics

SPA CU

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Revenue Allocation

Distribution of F&A Assessed in Prior Fiscal Year

10% to Principal Investigators

7.5% to Departments

7.5% to Centers (optional)

75% - 82.5% to Colleges

SPA CU

RRENTM

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Revenue Allocation

Chart1

02 OFFICE OF PROVOST

04 OFFICE OF STUDENT AFFAIRS

11 RESEARCH / SPONSORED PROGRAMS

12 GRADUATE SCHOOL

13 COLLEGE OF THE ARTS

14 INFORMATION TECHNOLOGY

15 COLLEGE-DESIGN CONSTRUC / PLAN

16 COLLEGE-LIBERAL ARTS/SCIENCES

17 COLLEGE-BUSINESS ADMINSTRATION

18 COLLEGE-EDUCATION

19 COLLEGE-ENGINEERING

20 INTERNATIONAL CENTER

22 VP-GENERAL COUNSEL

23 COLLEGE-JOURNALISM / COMMUNICA

24 COLLEGE-LAW

26 COLLEGE-HLTH/HUMAN PERFORMANCE

27 OFFICE OF HEALTH AFFAIRS

28 COLLEGE-VETERINARY MED

29 COLLEGE-MEDICINE

30 COLLEGE-MEDICINE JACKSONVILLE

31 COLLEGE-NURSING

32 COLLEGE-PHARMACY

33 COLLEGE-PUBL HLTH / HLTH PROFS

34 COLLEGE-DENTISTRY

36 PHHP-COM INTEGRATED PROGRAMS

52 DIVISION-CONTINUING EDUCATION

55 UNIVERSITY LIBRARIES

56 FLORIDA MUSEUM NATURAL HISTORY

60 COLLEGE- AGRICUL / NAT RES

64 FINANCE / ACCOUNTING

CE TYPE ONE CENTERS

DI DW-DIGITAL WORLD

FY14 Data

FY 14 IDC Earnings

17314.13

26273.96

2013375.3

9597.88

1962.66

6228.38

535838.11

7512867.97

30818.01

1544562.49

12988372.06

37977.46

3600

12504.17

36891.41

842614.35

-622.4

1809279.66

27925013.72

2120141.53

168964.45

1934982.77

3113978.92

3285145.38

1307012.07

4727.92

97845.67

1060305.9

10904855.49

34.21

3795573.85

9788.93

_1

Last Update: Tuesday, October 07, 2014 UFLOR by Expense Account across Fiscal Years

[Facilities and Administration][2014][Accounting Period Type][Budget Period][All Departments][All Budget References][All Employees (UFID/Name)][All Flexfields (College/Dept/Flex)][All Funds (by Ledger Group)][All Sources of Funds][All Programs][All CRIS (IFAS Only)][Oper / NonOper Funds]General Ledger Actuals

College/UnitFY14 IDC Earnings

02 OFFICE OF PROVOST17,314

04 OFFICE OF STUDENT AFFAIRS26,274

11 RESEARCH / SPONSORED PROGRAMS2,013,375

12 GRADUATE SCHOOL9,598

13 COLLEGE OF THE ARTS1,963

14 INFORMATION TECHNOLOGY6,228

15 COLLEGE-DESIGN CONSTRUC / PLAN535,838

16 COLLEGE-LIBERAL ARTS/SCIENCES7,512,868

17 COLLEGE-BUSINESS ADMINSTRATION30,818

18 COLLEGE-EDUCATION1,544,562

19 COLLEGE-ENGINEERING12,988,372

20 INTERNATIONAL CENTER37,977

22 VP-GENERAL COUNSEL3,600

23 COLLEGE-JOURNALISM / COMMUNICA12,504

24 COLLEGE-LAW36,891

26 COLLEGE-HLTH/HUMAN PERFORMANCE842,614

27 OFFICE OF HEALTH AFFAIRS(622)

28 COLLEGE-VETERINARY MED1,809,280

29 COLLEGE-MEDICINE27,925,014

30 COLLEGE-MEDICINE JACKSONVILLE2,120,142

31 COLLEGE-NURSING168,964

32 COLLEGE-PHARMACY1,934,983

33 COLLEGE-PUBL HLTH / HLTH PROFS3,113,979

34 COLLEGE-DENTISTRY3,285,145

36 PHHP-COM INTEGRATED PROGRAMS1,307,012

52 DIVISION-CONTINUING EDUCATION4,728

55 UNIVERSITY LIBRARIES97,846

56 FLORIDA MUSEUM NATURAL HISTORY1,060,306

60 COLLEGE- AGRICUL / NAT RES10,904,855

64 FINANCE / ACCOUNTING34

CE TYPE ONE CENTERS3,795,574

DI DW-DIGITAL WORLD9,789

Total83,157,826

&L&C&R

&L&C&R

_1

FY 14 IDC Earnings

SPA CU

RRENTM

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Expense Allocation

Estimated Budget for units charged to all Responsibility Centers

Overhead Tax Drivers

• SPA – 18 month annualized direct research expenditureso Includes usage-based Sub-Pools

• Bond Payment – Medicine, IFAS, CLAS In most cases, colleges offset SPA/Bond Payments against IDC

returns

Sponsored Project Administration (avg) 9.75% 10.67%

FY 2016 FY 2015

THEWO

RK


Exemptions (training grants, tuition, pass-throughs)?

How to address (incentivize) strategic awards (Keck, etc.) that may not carry significant F&A?

How to incentivize interdisciplinary research?

Model may involve both a formula-driven component and a fixed component

Should the Research Enterprise be funded “off the top”, as fee-for-service, or some mixture of the two?

If the Research Enterprise is funded “off the top” what accountability is there for the Vice President for Research?

THEWO

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The university has a research infrastructure that must be supported, currently that infrastructure is approx. $40M.

IDCs on low IDC grants/contracts, below a floor of 10%, would fully contribute to the SPA tax.

All IDC will be distributed to college Deans (or comparable administrative units) for subsequent internal distribution, net of SPA taxes.

PI’s, departments and centers will not receive an IDC distribution from any projects where the IDC rate is at or below a college’s average SPA rate.

The deans and VPs support the university’s research goals by making investments in our infrastructure. As such, internal transfers within the 2xx series of fund codes and used to purchase equipment and renovate space would not be subject to SPA tax

A statement regarding returns to the PI should be a minimum of 10% of the IDC returns for all projects with full IDC returns.

Started by reviewing entire SPA budget and how funds were utilized

Reviewed portfolio of projects by unit Average F&A rate Projects generating less IDC than tax

Negative IDC Fund

Reviewed historical percentages of IDC that units retained after taxes

BU

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Model Development

BU

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Model Development

Taxing Revenues

Single Year Impact

“Exceptions” Implicit

No disincentive for accepting low IDC grants

Tax cannot exceed revenue

Taxing initial revenue eliminates the need to tax IDC, residuals, strategic support

Correlation between revenue and costs to institution?

Taxing Expenditures

Lookback Impacts

Explicit exceptions

Disincentive for accepting low IDC grants

Requires subsidies

Previously taxed expenditures in all grant-related funds

Tax based on usage of resources

vs.

BU

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AN

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Model Development

Deduct research enterprise costs from gross IDC revenue

Distribute net IDC proportional to gross earnings

Similar model, with low IDC grants (below tax rate) excluded

BU

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Model Development

Revenue tax on IDC

• 3 Tiers• Higher average IDC rates resulted in lower tax rate tiers

Similar model, with tax rate a function of a unit’s average IDC rate

• Effectively a continuous sliding scale instead of distinct tiers• Higher average IDC rates resulted in lower tax rates

BU

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Model Development

Hybrid Model

• Central SPA costs taken “off-the-top”• Sub-Pool costs allocated based on usage

The New World

YEAR1 C

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Year 1 Changes Implemented – 2016-17 Colleges

General fund revenues (Tuition, State Appropriations) all flow to central administration – then distributed to Colleges

Colleges receive a significant portion of their revenue as a function of what they do (Tuition & IDC)

Distribute all (collected/net) tuition using 70/30 teaching/enrollment except for new undergraduate student out of state fee – Differentiate tuition from fee

Tuition revenue determined using terms from CY 2015 (Spring, Summer, Fall 2015)

Revenues from new undergraduate out of state students (Fall 2015 –300 new students = approx. $3.6m) will establish the Provost Strategic Fund

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State appropriation used to help pay for General Fund Supplement

Distribute General Fund Supplement to hold harmless for FY 2017 – same budget as FY 2016 – with additions for FY 16 raises, Preeminence changes, PO&M

General Fund Supplement will be the same in future years unless significant or strategic changes occur

OH assessed using fixed rates on revenues (GA/IT 10%; 2.15% HSC), Facilities no change – commitment is that support units costs will be managed and controlled to stay within this budgeted revenue stream – significant unfunded mandates may require special assessments

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Provost in consultation with Sr. VPs sets budgets for Support Units

Library and Student Services funded by the Provost

State funded Service Centers and other appropriated units funded by State appropriation

Other distribution/assessment arrangements stay the same for the upcoming budget year (FY 17)

Auxiliary unit’s budgets lie outside of the general fund but pay tax on expenditures

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Year 1 Changes Implemented – 2016-17 Sponsored Program Assessment

Revenue is shared based on a percentage of total accrued IDC to a given unit in the prior year.

The percentage applied for the Sponsored Program Assessment is not the same for all units. Instead, there are four tiers:• Tier 1 (36.8%): High research intensity, high in-unit research

infrastructure costs, little or no additional resources to support research infrastructure

• Tier 2 (49%): High research intensity, high in-unit research infrastructure costs, some additional resources available to support research infrastructure

• Tier 3 (53.5%): Units with research portfolios that have additional resources to support research infrastructure, lower in-unit research infrastructure costs, or have lower research intensity

• Tier 4 (75%): Units with little or no research activity; 25% of the returned IDC is reserved in the event that a PI, dept, or center is eligible for returned IDC under UF policy.

YEAR1 C

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The overall model was required to collect very near the same total amount of assessment as was collected in FY 16, effectively using FY 16 as a baseline

The individual percentages for each tier were optimized to yield manageable shifts in the assessment within the context of FY 16.

No change to existing distribution policy for PI’s, Departments or Centers

As the research portfolio grows, this model allows the available resources for central research services supported by SPA (Office of Research, Contracts & Grants, EH&S, Cost Analysis) to increase proportional to IDC growth. In addition, this same group of units will need to be able to withstand fluctuations downward in IDC in any given year.

YEAR1 C

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YEAR2

Items Yet to be Considered

Auxiliary Tax Graduate Student Waivers Facility Tax Other Distribution/Assessment Arrangements Dual Degrees – 2 diplomas/2 colleges Subvention

Re-envisioning your Budget modelYour PresentersThe University of FloridaThe University of FloridaThe University of FloridaThe University of FloridaThe University of FloridaThe University of FloridaCurrent ModelCurrent ModelCurrent ModelCurrent ModelCurrent ModelCurrent ModelSupport Unit CostsSupport Unit CostsSupport UnitStrategic FundWeightsConcerns with Current ModelConcerns with Current ModelConcerns with Current ModelConcerns with Current ModelThe JourneyThe JourneyThe JourneyThe JourneyThe JourneyThe JourneyThe JourneyThe JourneyThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkThe WorkIDC and SPASPA SubcommitteeSPA SubcommitteeSPA SubcommitteeSPA Current ModelSPA Current ModelSPA Current ModelSPA Current ModelThe WorkThe WorkSlide Number 55Building a New ModelBuilding a New ModelBuilding a New ModelBuilding a New ModelYear 1 ChangesYear 1 ChangesYear 1 ChangesYear 1 ChangesYear 1 ChangesYear 1 ChangesYear 1 ChangesYear 2

re-envisioning your budget model · internal sales revenue would off-set direct expenditures,...

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