Reassess fund restrictions

Current Status  Updated May 2017

CSA due date is April 2020

Initiated

Analysis Underway

Partially Implemented

Fully Implemented

Fully Implemented CSA Confirmed

Project Goals

  • Review UCOP restricted funds and fund commitments to determine whether any of them can be reclassified as unrestricted (“discretionary”) budget for reallocation to campuses, according to the following process:
    • Review and update as necessary definitions of current restrictions on the approximately 250 existing restricted funds.
    • Determine if any funding currently classified as “centrally controlled restricted” or “restricted” can be reclassified as “unrestricted funding.”
    • If there is a recommendation to change funding restrictions, determine and quantify the overall impact, if any, on the UCOP budget resulting from change in funding designation (both revenue and expense impacts).
    • Quantify the impact, if any, on the campus allocation resulting from the change in funding designation from restricted to unrestricted.

Plan Assumptions

  • UCOP can identify, categorize and document all current restricted fund sources.
  • Restricted funds can be multi-year commitments, and these agreements must also be documented to ensure they are managed accordingly.
  • UCOP can develop clear parameters for each fund source and outline the approved purposes for use.
  • In cases that are unclear or require judgement, UCOP will outline scenarios to mindfully select conservative or aggressive positions.
  • Reserve policy must be in place before redirecting any available funds, and UCOP reserves must be adequately funded before consideration of discretionary funding reallocation.
  • UCOP’s primary goal is to effectively limit assessment growth, aiming to incorporate areas of savings where available.

CSA Reporting Requirements and Milestones

By April 2018

  • Document and review the restrictions on its funds and fund commitments to determine whether it can reallocate any of these funds to its discretionary budget for reallocation to campuses.

By April 2019

  • Publish the results of its review of fund restrictions and fund commitments and any funds it anticipates reallocating to campuses.

By April 2020

  • Reallocate to the campuses funds that it identified during its review of fund restrictions and fund commitments.

Workstream Milestones (preliminary)

1. Complete stakeholder analysis and form working group June 2017
2. Review and document all restricted fund sources for those with current budgets or existing fund balances. Oct 2017
3. Review all existing fund commitments to ensure appropriate documentation and priority of ongoing commitments. Oct 2017
4. Review previously completed materials to document the restricted funds, including their sources and approved uses. Nov 2017
5. Document all fund restrictions and create central repository for all restricted fund documentation. Dec 2017
6. Develop a “Sources and Uses” document for restricted funds that clearly identifies restricted fund purpose and allowable ways they can be applied. Feb 2018
7. Determine FY17-18 impact of restricted funding for development of FY18-19 budgets to include areas where restricted funds may be applied to cover current unrestricted budget. Jan 2018
8. Establish an annual restricted funds report that details restrictions on funds, fund commitments and fund balances for restricted funds above a certain threshold. Apr 2018
9. Establish appropriate reporting formats, public disclosure levels and timing of updates for all restricted funding. Jul 2018
10. Include restricted funding analysis to be used in budgeting to determine the amount to repurpose for discretionary budgeting. Feb 2019
11. Publish periodic review of restricted funds and fund commitments that can be anticipated for reallocation to the campuses. Mar 2019
12. Implement a process for regular review of restricted fund balances (actual balances and forecasted requirements). Jun 2019
13. Continue to limit campus assessment increases based on the results of the above steps. Apr 2020