{"id":127189,"date":"2022-03-25T08:56:09","date_gmt":"2022-03-25T12:56:09","guid":{"rendered":"https:\/\/www.ucf.edu\/news\/?p=127189"},"modified":"2022-03-25T08:57:22","modified_gmt":"2022-03-25T12:57:22","slug":"from-the-cfo-the-new-budget-model","status":"publish","type":"post","link":"https:\/\/www.ucf.edu\/news\/from-the-cfo-the-new-budget-model\/","title":{"rendered":"From the CFO: The New Budget Model"},"content":{"rendered":"<figure id=\"attachment_123391\" style=\"max-width: 193px;\" class=\"figure float-left\"><noscript><img decoding=\"async\" width=\"300\" height=\"300\" class=\"figure-img  wp-image-123391 img-fluid\" src=\"https:\/\/www.ucf.edu\/news\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-300x300.jpg\" alt=\"Gerald Hector, Senior Vice President for Administration and Finance at UCF\" srcset=\"https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-300x300.jpg 300w, https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-150x150.jpg 150w, https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector.jpg 350w\" sizes=\"(max-width: 300px) 100vw, 300px\"><\/noscript><img decoding=\"async\" width=\"300\" height=\"300\" class=\"figure-img  wp-image-123391 img-fluid lazyload\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20300%20300%22%3E%3C%2Fsvg%3E\" alt=\"Gerald Hector, Senior Vice President for Administration and Finance at UCF\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20300%20300%22%3E%3C%2Fsvg%3E 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" data-srcset=\"https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-300x300.jpg 300w, https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-150x150.jpg 150w, https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector.jpg 350w\" data-src=\"https:\/\/www.ucf.edu\/news\/wp-content\/blogs.dir\/20\/files\/2021\/10\/gerald-hector-300x300.jpg\"><figcaption class=\"figure-caption\">Gerald Hector, Senior Vice President for Administration and Finance<\/figcaption><\/figure>\n<p>This month\u2019s installment of \u201cFrom the CFO\u201d continues sharing information with the campus about the change-management efforts underway at UCF.<\/p>\n<p>We will be launching a new budget model on July 1 that makes several changes to how we have handled budgets in prior years. The new model is designed to help us strengthen our operations, expand our resources and invest in excellence.<\/p>\n<p>The new model brings a greater transparency to how all resources are allocated to carry out the mission of the university. Additionally, it brings with it greater accountability and responsibility for vice presidents, deans, directors, and others to spend the funds allotted to their respective colleges and units with care and purpose.<\/p>\n<p>Some key points are:<\/p>\n<p><strong>1.<\/strong> Our current \u201cincremental\u201d budget model provides colleges and units the budget they had from the prior year, which might be increased or decreased due to changes in enrollment. This model assisted the university on its growth trajectory, but now we must have a more strategic focus to build budgets from the bottom up.<\/p>\n<p><strong>2.<\/strong> In the current budget model, funds first flow into the university from all sources, then central administration distributes those funds to colleges and units. The new model has all funds flowing into the university through the colleges, with the central administrative units providing their allocated costs for funding, and the provost sets aside funds to support colleges and fund presidential strategic priorities.<\/p>\n<p><strong>3.<\/strong> Education and General (E&amp;G) revenues \u2014 including tuition, fees, and state appropriations \u2014 will be allocated in this way:<br>\n<strong>&nbsp; &nbsp; &nbsp; &nbsp;a.<\/strong> The college teaching a course will receive 80% of the revenues associated with the student credit hours generated.<\/p>\n<p><strong>&nbsp; &nbsp; &nbsp; &nbsp;b.<\/strong> The student\u2019s home college will receive 20% of the revenues associated with the credit hours generated.<\/p>\n<p><strong>&nbsp; &nbsp; &nbsp; &nbsp;c.&nbsp;<\/strong>State appropriated funds will be distributed using the following criteria:<\/p>\n<ol>\n<li style=\"list-style-type: none\">\n<ol>\n<li>Instructional effort (42.5%)<\/li>\n<li>Student completion (42.5%)<\/li>\n<li>Research activity (15%)<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p><strong>4.<\/strong> Under the new model, all sources of funds will align with all future uses of those funds. Both the sources and uses of the funds will be completed <a href=\"https:\/\/www.ucf.edu\/news\/from-the-cfo-the-colors-of-money\/\">within the appropriate colors of money<\/a> for the university (i.e., E&amp;G, Auxiliary, Contracts and Grants, and Fundraising).<\/p>\n<p><strong>5.<\/strong> Carryforward funds from a prior year will be highlighted to identify non-recurring expenses. These funds will follow the annual carryforward spending plan voted on by our Board of Trustees every June and tracked over the course of the next fiscal year.<\/p>\n<p>Effective July 1, 2019, the rules around carryforward usage in a subsequent year changed, so it\u2019s important that there be a clear understanding of how these funds may be used. This spring and into the summer, we plan to spend more time meeting with the campus community in small group sessions to ensure this topic is better understood.<\/p>\n<p>There will also be enhanced discussions around budget development and deployment that include:<\/p>\n<p><strong>1.<\/strong> Budget presentations by Central Support Units<br>\n<strong>2.<\/strong> Budget presentations and management by colleges<br>\n<strong>3.<\/strong> Continued updates after each Board of Trustees meeting with <em>Dollars &amp; $ense<\/em> webinars<br>\n<strong>4.<\/strong> Group meetings and events with President Cartwright and Provost Johnson<br>\n<strong>5.<\/strong> A new, comprehensive budget model web course that you can review at your own pace for a window into how the budget model will work. <a href=\"https:\/\/rise.articulate.com\/share\/xuhd8sXFcvyhzykm9IHIn_ka9exxHFPq#\/\">You can find the course here<\/a>.<\/p>\n<p>The model will take a couple of years to mature on our campus, but having it done with all the other changes presents some unique opportunities for us to continue to improve. We encourage you to visit the <a href=\"https:\/\/fa.ucf.edu\/budgetredesign\/\">Budget Model Redesign Initiative<\/a>. Our future is looking brighter every day as we work together to solve some of these issues.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How changing UCF&#8217;s budget model will reshape the way resources are allocated across campus.<\/p>\n","protected":false},"author":30,"featured_media":106281,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"lazy_load_responsive_images_disabled":false,"footnotes":"","_links_to":"","_links_to_target":"","_wp_rev_ctl_limit":""},"categories":[5],"tags":[46606,35527],"tu_author":[],"class_list":["post-127189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colleges","tag-from-the-cfo","tag-gerald-l-hector"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>From the CFO: The New Budget Model | University of Central Florida News<\/title>\n<meta name=\"description\" content=\"How changing UCF&#039;s budget model will reshape the way resources are allocated across campus.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ucf.edu\/news\/from-the-cfo-the-new-budget-model\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From the CFO: The New Budget Model\" \/>\n<meta property=\"og:description\" content=\"How changing UCF&#039;s budget model will reshape the way resources are allocated across campus.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ucf.edu\/news\/from-the-cfo-the-new-budget-model\/\" \/>\n<meta property=\"og:site_name\" content=\"University of Central Florida News | UCF Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/UCF\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-25T12:56:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-25T12:57:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2019\/07\/UCF-Money.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Schlueb \u201993 &#039;21MA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@UCF\" \/>\n<meta name=\"twitter:site\" content=\"@UCF\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Schlueb \u201993 &#039;21MA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/from-the-cfo-the-new-budget-model\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/from-the-cfo-the-new-budget-model\\\/\"},\"author\":{\"name\":\"Mark Schlueb \u201993 '21MA\",\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/#\\\/schema\\\/person\\\/c49b89acd64eb33d855225f922bd07a4\"},\"headline\":\"From the CFO: The New Budget Model\",\"datePublished\":\"2022-03-25T12:56:09+00:00\",\"dateModified\":\"2022-03-25T12:57:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/from-the-cfo-the-new-budget-model\\\/\"},\"wordCount\":611,\"image\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/from-the-cfo-the-new-budget-model\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ucf.edu\\\/wp-content\\\/blogs.dir\\\/20\\\/files\\\/2019\\\/07\\\/UCF-Money.jpg\",\"keywords\":[\"From the CFO\",\"Gerald L. 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