Improve UCOP budget process

Current Status  Updated May 2017

CSA due date is April 2020

Initiated

Analysis Underway

Partially Implemented

Fully Implemented

Fully Implemented CSA Confirmed

Project Goals

  • Ensure that the UCOP budget process includes consistent, timely, and appropriate input from relevant campus stakeholders.
  • Understand gaps between the current UCOP budget process and industry best practice budget processes.
  • Develop a plan to address gaps or deficiencies in the budget process.
  • Implement overall budget process best practices, leveraging GFOA and NACUBO standards.
  • Revise budget policies and/or practices related to documentation and approval of one-time expenditures (both budgeted and unforeseen) and the expenditure of surplus funds from previous years to ensure thorough documentation, justification, approval, tracking, and appropriate reporting.
  • Evaluate and revise budget processes as needed to ensure that all expenditures are properly justified and approved.
  • Assuming budget safeguards are deemed sufficient after they’re revised the budget process, implement a multi-year budgeting process and plan.
  • Determine if any budget savings can be identified for reallocation as a result of improved processes.

Plan Assumptions

  • UCOP will clearly document and communicate the role of campus stakeholders and expectations for their input in the budget process.
  • UCOP will consider existing structures/venues for campus input to the UCOP budget and will leverage these structures/venues to ensure efficiency and avoid duplication of effort.
  • UCOP will revise its budget processes to align with best practices (GFAO, NACUBO).
  • UCOP will develop and implement an improved process to appropriately justify, review, approve, and fund one-time expenditures, both planned and unforeseen.
  • UCOP will develop and implement a standardized process to improve the timeliness, consistency, relevance, and usability of budget and expense related reports to support improved management and forecasting of budgets and expenditures.
  • UCOP will analyze existing deployment and distribution of effort and resources and recommend optimal structure to support effective and efficient budget and financial analysis processes.
  • UCOP will clearly document revised budget policies, practices, and processes.
  • Successful and timely outcomes of this workstream are dependent on the UCOP Budget & Finance department’s ability to have sufficient and appropriate time and resources required to analyze and address gaps in the current process and implement new policies, procedures, systems, and tools.
  • Successful and timely outcomes of this workstream are dependent on the replacement of the UCOP budget tool, BDS, with a more sophisticated tool. Replacement is required to fully achieve the desired outcomes as BDS functionality is limited in key areas and requires significant manual manipulation of data, which significantly and negatively impacts staff productivity.

CSA Reporting Requirements and Milestones

By April 2018

  • Increase campus stakeholder input in the budget development process by reconvening the campus budget committee and establishing an agreed upon charter that describes the committee’s scope, role, and protocol for reviewing and providing comments on the Office of the President’s annual budget.

By April 2019

  • Implement the best practices for budgeting identified by GFOA and NACUBO, including developing budget policies and procedures and formally documenting, approving, and justifying all one-time and unexpended expenditure requests.

By April 2020

  • Evaluate its budget process to ensure it is efficient and has adequate safeguards that ensure staff approve and justify all budget expenditures. If the Office of the President determines that its safeguards are sufficient, it should begin developing a multi-year budget plan.
  • Report to the regents on the amount of funds it reallocates to campuses as a result of implementing our recommendations.

Workstream Milestones (preliminary)

1. Stakeholder analysis and formation of budget process working Group — Identify key stakeholders and form working group to support workstream. Includes the identification of internal UCOP stakeholders and a small representative group of campus stakeholders to provide feedback on the proposed campus stakeholder feedback/input process. June 30, 2017
2. Development of project plan and timeline — Develop project plan including but not limited to clear scope, key workstreams, dependencies, preliminary timeline. September 30, 2017
3. Validate project plan and timeline with internal stakeholders (COO Nava, CFO Brostrom and others) and seek feedback. October 5, 2017
4. Workstream 1: Assess current process for campus stakeholder input — In collaboration with campus stakeholder representatives, identify pros and cons of current collaboration process and identify key areas for improvement. October 5, 2017
5. Workstream 1: Develop stakeholder input recommendation — in collaboration with representative group of campus stakeholders, develop a recommendation for a process for campus stakeholder input into the UCOP budget. November 30, 2017
6. Workstream 1: Present stakeholder input recommendation to senior leaders and others as appropriate. December 15, 2017
7. Workstream 1: Present final stakeholder input recommendation to President for input prior to implementation. January 15, 2018
8. Workstream 2: Develop high-level, current-state process maps and documentation of current practices of UCOP-wide budget practices. March 2018
9. Workstream 3: Analyze best practices and create gap analysis — Research and summarize best practices as they relate to all areas impacting the budget and analysis process including processes, tools, and resources, while leveraging guidelines from GFAO, NACUBO, etc. Determine gaps with UCOP processes. March 2018
10. Workstream 1: Stakeholder Input Implementation —implement a process for campus stakeholder UCOP budget process input. April 30, 2018
11. Present progress reports to senior leaders and others as appropriate (multiple updates to be scheduled at regular intervals). On-going
12. Preliminary current state and best practice gap analysis report detailing current practices, policies, stakeholder involvement, structure, resources, and tools and related gaps to best practices. April 2018
13. Preliminary current state and best practice gap analysis report with senior leaders and others as appropriate to inform of progress and seek input. April 2018
14. Review preliminary current state and best practice gap analysis report with the President to inform of progress and seek input. April 2018
15. Review preliminary current state and best practice gap analysis report with appropriate Regents representatives. May 2018
16. Workstream 4: Review and assess current resources and structure — Review and assess current deployment of financial analysis and budgeting resources. Determine strengths, weaknesses, and opportunities related to structure and distribution of work. July 2018
17. Workstream 5: Assess high-level options for budget system replacement — Develop a preliminary assessment of options, costs, dependencies, and timeline for replacement of UCOP Budget Development System. September 2018
18. Note: This audit recommendation requires development and completion of multiple significant workstreams and development and implementation milestones will be depend on approved set of recommendations. Development of detailed milestones between April 2018 and April 2019 will depend on the approved actions.
19. Overall budget process: Options, draft recommendations, and implementation timeline Report — report detailing options, preliminary recommendations, and associated timelines. This milestone includes review by senior leaders September 2018
20. Overall budget process: final recommendations and timeline — present final recommendations with proposed implementation timeline for change in Budget Process and associated tools. Review with senior leaders and others as appropriate to inform of progress and seek feedback. November 2018
21. Overall budget process: final recommendations and timeline present final recommendations with proposed implementation timeline for change in Budget Process and associated tools. Review with President to inform of progress and seek feedback. November 2018
22. Overall budget process: final recommendations and timeline Present final recommendations with proposed implementation timeline for change in Budget Process and associated tools. Review with appropriate Regents representatives. January 2019
23. Implementation of new budget processes — Implement new budget processes and systems and document updated policies and procedures. April 30, 2019
24. Budget process validation - Validate whether outcomes align with planned goals and objectives. Evaluate for sufficient safeguards. Evaluate for potential savings. Report findings to stakeholders. Revise and refine processes as necessary. April 30, 2020
25. Begin development of multi-year budget plan April 30, 2020