What does All Funds Budgeting mean?
All funds budgeting is a comprehensive financial framework structured to present an enterprise-wide view of the budget, incorporating all operating funds into the official university budget. The all funds model expands the budget from a control mechanism to a strategic management viewpoint. With the inclusion of all major revenue sources, the expanded budget view enhances understanding of how and whether financial resources are allocated to support institutional objectives, integrating the budget with strategic and capital plans. The focus shifts from an “accounting” perspective of balancing the budget to a strategic perspective of ensuring funds are available to meet the university’s strategic objectives. If the operating budget is merely incremental and lacks identification of resources required for strategic investment, then while the strategic plan represents substantive change—a strategic gap exists in balancing the budget. Click the About link, above, to learn more.
How much is changing in Phase I of All Funds Budgeting?
The theme for this implementation has become: Simplify.
Simplifying Phase I of implementation means that we start off with moderately-sized and manageable steps toward the long-term goal. We’ve clarified existing business practices and developed a few new ones, and will be working on some technical enhancements. And, of course, the scope of our budgeting will expand beyond the general fund.
Following the FY2017 budget construction season, the University Budget Office will conduct an analysis and begin prioritizing and planning for Phase II. We expect that All Funds Budgeting will be fully implemented within 3-5 years.
Does All Funds Budgeting mean that we will budget all fund groups?
Interestingly enough, no. There are some fund groups that are not reported in the university’s books, and so are excluded from the budget. Agency Funds (AF) and Clearing & Rotating Funds (CL) are two examples. Contract & Grants (CG) will budget compensation only; Plant Funds (PF) will be represented outside of budget construction. Click on the Budget Construction link, above, to see a complete list of funds and sub-funds that are included.
Contracts & Grants
Will there be any impacts to how we budget C&G accounts?
There will be no change; compensation will continue to be budgeted as it is currently.