PRIUM site visit september 9-10, 2008 Managing finance & optimizing efficiency Nic Van Craen, director finance

previous Presentation about new funding model and its impact on the organisation as seen from the finance department

Presentation about new funding model and its impact on the organisation as seen from the finance department

agenda Function of finance department Some keynumbers: annual accounts & budgetsources Introduction to the New government financing model Transition period by unchanged policy As-is situation between 2003-2006 2007: introduction of the new model and impact on university policy To-be 2008-2013 Introduction of an Allocation model Use of combined integrated data = BI, need for ERP Chaning role of central administration Risks

Function of finance department

Some keynumbers: annual accounts & budgetsources

Introduction to the New government financing model

Transition period by unchanged policy

As-is situation between 2003-2006

2007: introduction of the new model and impact on university policy

To-be 2008-2013

Introduction of an Allocation model

Use of combined integrated data = BI, need for ERP

Chaning role of central administration

Risks

Finance department Global Mission: improvement of revenues, efficiënt & effectiveness costallocation en –centers tools: Financial administration: central, legal, operations Financial management: policy Budgeting & forecasting: framework & steering of university policy and its administration/execution How? responsabilities, 5yr and yearly plan in accordance to strategic plan of university , link between academic policy and financial policy External driver: new governement financing model

Global Mission: improvement of revenues, efficiënt & effectiveness costallocation en –centers

tools:

Financial administration: central, legal, operations

Financial management: policy

Budgeting & forecasting: framework & steering of university policy and its administration/execution

How? responsabilities, 5yr and yearly plan in accordance to strategic plan of university , link between academic policy and financial policy

External driver: new governement financing model

Annual accounts (k €)

Introduction of a new financing model First draft of model in 2004 Decree of 14/03/08 Impact starting on Budget 2008 Milestone 2013 – major change in financing ( no more historical compensation) Academisation 2013

First draft of model in 2004

Decree of 14/03/08

Impact starting on Budget 2008

Milestone 2013 – major change in financing ( no more historical compensation)

Academisation 2013

Institutional funding model

Transition period

As-is situation between 2003-2006: “ frozen” governement funding since 2000, fractional indexation + : fixed, certain and time to prepare - : increase of expenses > index of funding internal budgeting reform preparing change in funding adapted Budgeting proces: zero based if relevant, central policy on the use of local reserves, projection on 5j-bases Budgeting as steering-instrument in university policy instead of post-factum material introduction of active electronic financial administration: use of web-application for ordering, management, reporting & budgeting starting at cost centre level Imposed to realise a closely defined procedure Need for reallocation of staff in finance department Awareness of the cost centre responsables

“ frozen” governement funding since 2000, fractional indexation

+ : fixed, certain and time to prepare

- : increase of expenses > index of funding

internal budgeting reform

preparing change in funding

adapted Budgeting proces: zero based if relevant, central policy on the use of local reserves, projection on 5j-bases

Budgeting as steering-instrument in university policy instead of post-factum material

introduction of active electronic financial administration: use of web-application for ordering, management, reporting & budgeting starting at cost centre level

Imposed to realise a closely defined procedure

Need for reallocation of staff in finance department

Awareness of the cost centre responsables

2007: introduction of the new model Impact on university policy changing role of finance-department from exclusively executing to expertise and consultancy supported bij automated systems and BI not only in this case but as a general organisational impact

Impact on university policy

changing role of finance-department from exclusively executing to expertise and consultancy

supported bij automated systems and BI

not only in this case but as a general organisational impact

To-be 2008-2013 Introduction of a (new) allocation model Characteristics: Governement Funding model = benchmark Knowledge on the cost/funding of activities Solidarity on university-level Key to goalsetting on faculty/course and university level Solide, rewarding goal-achievement Goals: autonomy & responsability on faculty-level in accordance to the university-strategy Rewarding/sanctioning Translation of university strategy by internal drivers Conditions: Business intelligence University management Professionalism of central administration

Introduction of a (new) allocation model

Characteristics:

Governement Funding model = benchmark

Knowledge on the cost/funding of activities

Solidarity on university-level

Key to goalsetting on faculty/course and university level

Solide, rewarding goal-achievement

Goals:

autonomy & responsability on faculty-level in accordance to the university-strategy

Rewarding/sanctioning

Translation of university strategy by internal drivers

Conditions:

Business intelligence

University management

Professionalism of central administration

Central administration = overhead! Contradiction? Increasinge importance of (central) administration while need to maximum output on academic level External conditions, justifying & legislation: Need of Expertise and consulting from central to individual level Automisation: raptools, campusmanagement, webapplications, avoid double input Need of: Strong resolute central administration Internal audit Full cost model (introduced by FP7; impact to total university, f.e. timesheeting) Risks: Resolute central administration  individual academic goals overkill in administration also at academic staff level, dependancy on systems Cost of decision-making Automisation seems like transeferring work from central to individual level Threats: Change in mandate whilst staff isn’t prepared to new situation

Contradiction?

Increasinge importance of (central) administration while need to maximum output on academic level

External conditions, justifying & legislation:

Need of Expertise and consulting from central to individual level

Automisation: raptools, campusmanagement, webapplications, avoid double input

Need of:

Strong resolute central administration

Internal audit

Full cost model (introduced by FP7; impact to total university, f.e. timesheeting)

Risks:

Resolute central administration  individual academic goals

overkill in administration also at academic staff level,

dependancy on systems

Cost of decision-making

Automisation seems like transeferring work from central to individual level

Threats:

Change in mandate whilst staff isn’t prepared to new situation

Any questions?  : nvcraen @ vub.ac.be  : +32 2 629 20 96

 : nvcraen @ vub.ac.be

 : +32 2 629 20 96