Prium Brussels 0809 Managing Finance


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Managing finance & optimizing efficiency, by Nic Van Craen (powerpoint presentation)

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  • Prium Brussels 0809 Managing Finance

    1. 1. PRIUM site visit september 9-10, 2008 Managing finance & optimizing efficiency Nic Van Craen, director finance
    2. 2. previous <ul><li>Presentation about new funding model and its impact on the organisation as seen from the finance department </li></ul>
    3. 3. agenda <ul><li>Function of finance department </li></ul><ul><li>Some keynumbers: annual accounts & budgetsources </li></ul><ul><li>Introduction to the New government financing model </li></ul><ul><li>Transition period by unchanged policy </li></ul><ul><li>As-is situation between 2003-2006 </li></ul><ul><li>2007: introduction of the new model and impact on university policy </li></ul><ul><li>To-be 2008-2013 </li></ul><ul><ul><li>Introduction of an Allocation model </li></ul></ul><ul><ul><li>Use of combined integrated data = BI, need for ERP </li></ul></ul><ul><ul><li>Chaning role of central administration </li></ul></ul><ul><li>Risks </li></ul>
    4. 4. Finance department <ul><li>Global Mission: improvement of revenues, efficiënt & effectiveness costallocation en –centers </li></ul><ul><li>tools: </li></ul><ul><ul><li>Financial administration: central, legal, operations </li></ul></ul><ul><ul><li>Financial management: policy </li></ul></ul><ul><ul><li>Budgeting & forecasting: framework & steering of university policy and its administration/execution </li></ul></ul><ul><li>How? responsabilities, 5yr and yearly plan in accordance to strategic plan of university , link between academic policy and financial policy </li></ul><ul><li>External driver: new governement financing model </li></ul>
    5. 5. Annual accounts (k €)
    6. 6. Introduction of a new financing model <ul><li>First draft of model in 2004 </li></ul><ul><li>Decree of 14/03/08 </li></ul><ul><li>Impact starting on Budget 2008 </li></ul><ul><li>Milestone 2013 – major change in financing ( no more historical compensation) </li></ul><ul><li>Academisation 2013 </li></ul>
    7. 7. Institutional funding model
    8. 8. Transition period
    9. 9. As-is situation between 2003-2006: <ul><li>“ frozen” governement funding since 2000, fractional indexation </li></ul><ul><ul><li>+ : fixed, certain and time to prepare </li></ul></ul><ul><ul><li>- : increase of expenses > index of funding </li></ul></ul><ul><ul><li>internal budgeting reform </li></ul></ul><ul><ul><li>preparing change in funding </li></ul></ul><ul><li>adapted Budgeting proces: zero based if relevant, central policy on the use of local reserves, projection on 5j-bases </li></ul><ul><li>Budgeting as steering-instrument in university policy instead of post-factum material </li></ul><ul><li>introduction of active electronic financial administration: use of web-application for ordering, management, reporting & budgeting starting at cost centre level </li></ul><ul><ul><li>Imposed to realise a closely defined procedure </li></ul></ul><ul><ul><li>Need for reallocation of staff in finance department </li></ul></ul><ul><ul><li>Awareness of the cost centre responsables </li></ul></ul>
    10. 10. 2007: introduction of the new model <ul><li>Impact on university policy </li></ul><ul><li>changing role of finance-department from exclusively executing to expertise and consultancy </li></ul><ul><li>supported bij automated systems and BI </li></ul><ul><li>not only in this case but as a general organisational impact </li></ul>
    11. 11. To-be 2008-2013 <ul><li>Introduction of a (new) allocation model </li></ul><ul><ul><li>Characteristics: </li></ul></ul><ul><ul><ul><li>Governement Funding model = benchmark </li></ul></ul></ul><ul><ul><ul><li>Knowledge on the cost/funding of activities </li></ul></ul></ul><ul><ul><ul><li>Solidarity on university-level </li></ul></ul></ul><ul><ul><ul><li>Key to goalsetting on faculty/course and university level </li></ul></ul></ul><ul><ul><ul><li>Solide, rewarding goal-achievement </li></ul></ul></ul><ul><ul><li>Goals: </li></ul></ul><ul><ul><ul><li>autonomy & responsability on faculty-level in accordance to the university-strategy </li></ul></ul></ul><ul><ul><ul><li>Rewarding/sanctioning </li></ul></ul></ul><ul><ul><ul><li>Translation of university strategy by internal drivers </li></ul></ul></ul><ul><ul><li>Conditions: </li></ul></ul><ul><ul><ul><li>Business intelligence </li></ul></ul></ul><ul><ul><ul><li>University management </li></ul></ul></ul><ul><ul><ul><li>Professionalism of central administration </li></ul></ul></ul>
    12. 12. Central administration = overhead! <ul><li>Contradiction? </li></ul><ul><li>Increasinge importance of (central) administration while need to maximum output on academic level </li></ul><ul><li>External conditions, justifying & legislation: </li></ul><ul><ul><li>Need of Expertise and consulting from central to individual level </li></ul></ul><ul><ul><li>Automisation: raptools, campusmanagement, webapplications, avoid double input </li></ul></ul><ul><li>Need of: </li></ul><ul><ul><li>Strong resolute central administration </li></ul></ul><ul><ul><li>Internal audit </li></ul></ul><ul><ul><li>Full cost model (introduced by FP7; impact to total university, f.e. timesheeting) </li></ul></ul><ul><li>Risks: </li></ul><ul><ul><li>Resolute central administration  individual academic goals </li></ul></ul><ul><ul><li>overkill in administration also at academic staff level, </li></ul></ul><ul><ul><li>dependancy on systems </li></ul></ul><ul><ul><li>Cost of decision-making </li></ul></ul><ul><ul><li>Automisation seems like transeferring work from central to individual level </li></ul></ul><ul><li>Threats: </li></ul><ul><ul><li>Change in mandate whilst staff isn’t prepared to new situation </li></ul></ul>
    13. 13. Any questions? <ul><li> : nvcraen @ </li></ul><ul><li> : +32 2 629 20 96 </li></ul>