Financial Administrator Development Program. October 19, 2017

Transcription

1 Financial Administrator Development Program October 19, 2017

2 Program Introduction Mark P. Haas Vice President for Finance and Treasurer

3 Housekeeping Issues Sign in every session Complete daily feedback surveys Restroom locations Breaks/lunch Website: 3

4 MSU Organization Chart Board of Trustees President Provost and Executive Vice President for Academic Affairs Executive Vice President for Administrative Services Other Vice Presidents VP for Finance and Treasurer Executive Officers Other Executives Chief Investment Officer 4

5 Office of the Vice President for Finance and Treasurer Stephen Hsu Vice President for Research and Graduate Studies Mark Haas Vice President for Finance and Treasurer Twila Reighley Assistant Vice President for Research and Graduate Studies Contract and Grant Administration Controller Treasury and Financial Management Risk Management and Insurance University Services Evo Pedawi Director Greg Deppong Controller Jeff Rayis Director Matthew McCabe Director Kim Kokenakes Director 5

6 Program Goals and Purpose MSU went from a bookkeeping system to a full financial accounting system; we are providing you with: Resources, technical tools, and organizational context Skills to use financial information Broader institutional perspective Program builds on previous training, with the intention of expanding the capacity and perspective of the leaders who have financial administration responsibilities 6

7 Expand Your Horizons Human Resources Research Risk/ Legal Procurement Finance/ Accounting / Budget Advancement Personal Development Planning 7

8 Financial Administrator Development Program Another Step to Keeping MSU World Class Oct 2017 Nov 2017 Jan 2018 Feb 2018 April 2018 May 2018 June 2018 Session 1 Welcome / University Strategic Planning Success Strategies / Myers Briggs Internal Controls and Ethics Undergraduate Education and Studies Financial Statements and External Audits Audits Session 2 Communicating Institutional information Treasury, Financial Mgt and Investments Financial and Tax Policies / Processes FOIA IT Services MSU Financial Data Analysis Session 3 Records Mgt Culture of High Performance Procurement Goods and Services Student Affairs and Services Legal Issues and Risk Assessment Risk Mgt and Ins. Worker s Comp Budget Administration Registrar s Office Financial Aid Student Financial Services Admissions Session 4 Finding Funding, Budget Prep, Proposal Award Process Post Award Contract and Grant Admin Facilities and Admin. Costs Clinical Research Financial Data Analysis cont d KC Update Athletics Session 5 Research Outcomes Data Services Travel Governmental Affairs State Government Relations University Advancement Working with Gift Funds Session 6 Total Compensation and Wellness Talent Management Employee Relations Payroll Policies Benefits and Benefit Cost Rate Accounting Orgs, Charts of Accounts, & Workflow Session 7 Facilities Planning and Space Management MSU Construction Secchia Center Know Your Niche 8

9 Foundation of Financial Training Programs Financial Administrator Development Program Targeted Topics in Accounting Accounting in EBS I Financial System Orientation 9

10 MSU Financial Training Programs 10

11 1,396 Attendees Have Completed Accounting in EBS Class Fiscal Officers Delegates Initiators Nonfinancial system users and former employees 2,565 2, Total Completed Remainder

12 Schedule of Future Accounting Classes Date Seats Reserved Openings December 5,

13 The World Has Changed Funding paradigm for higher education has shifted Educational delivery mechanism is evolving Public view of higher education moving 13

14 $1,000 $900 $800 $700 $600 $500 $400 Revenues Trend Tuition and State Appropriations Tuition and Fees $859 Million $300 $200 State Appropriations $338 Million $100 $

15 Research Requires Institutional Support Indirect Cost Recovery from Grants 30% Direct Cost from Grant 55% Institutional Support 15% *Effective Averages 15

16 Revenue Trends $2,600 $2,400 Total $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Tuition and Fees State and Federal Grants State Appropriations Auxiliary Activities Private Gifts and Grants Departmental Income 16

17 Revenue Increases as Student Enrollment Increases $3,000 60,000 $2,500 $2.6B 55,000 $2,000 $1,500 50,019 50,000 Students $1,000 $500 $1.3B 44,937 45,000 $0 40,000 Total Revenue Students 17

18 Growing Research Requires Growing Institutional Support $1,200 $1,000 Research Expense $1 B $800 $600 $400 $200 $454 30% $136 $558 $508 $516 $527 37% 36% 34% 34% $172 $177 $189 $205 $613 36% $218 Average Institutional Support Projected $300M $ Research & Development Institutional Funds 18

19 Educational Delivery Mechanism Evolving On Campus Mail Order Online Learning Original public universities land grants from states University of Phoenix mass produced mail order degrees Many weekend Executive MBA programs ($10,00 to $120,000) Universities investing $100s of millions to increase online learning capability MSU administered approximately 176,784 virtual school credit hour classes online in FY16, which represents approximately 13% of the total school credit hour at MSU (2% are hybrid) Future? Continued need for on campus experience, but mix changing. 19

20 Public View of Higher Education Moving Institutes of higher learning revered Sports scandals Violence and sexual assaults on campus Cheating scandals students and teachers Tuition increases faster than inflation Student debt skyrockets College graduates cannot get jobs Questioned value of higher ed 20

21 Tougher Competition MSU ranked in top 100 universities in the world Rankings based on: Education Research Outreach Cost / Value Funding affects all factors China s national policy is to have 50 of top 100 universities in the world in China 21

22 MSU Needs to Continuously Improve to Remain in Top 100 Universities Other schools working hard to move up Need more revenue to support research Competition for funding intensifying Need to be more productive More and better output per $ spent Need to cut costs 22

23 Improvements Require Change and Money Limited revenue options Tuition Appropriations Research grants Charitable gifts Debt (pay now or later) Require changes to improve effectiveness 23

24 MSU 2017 Revenue Departmental Income In Millions Gifts and Grants $263 $278 $859 Tuition and Fees Investment Income $391 $338 $468 State Appropriations $357 Research Grants & Contracts Auxiliary Activities (Housing, Athletics) Source: 2017 MSU Annual Financial Statements and Investments and Financial Management 24

25 1,600 1,400 Debt Funds Building Projects Actual Debt $1,247 M New Debt 1,200 1, *Projections assume no change to non General Revenue debt (including Federal Student Loan Deposits, lines of credit, lease obligations). Future General Revenue debt is only projected for projects that have been approved by the BOT to use debt. Includes debt for $128M of projects No New Debt $66.3 M * 2019* 2020* 2021* 2022* 25

26 2,000 1,800 1,600 MSU Debt and Debt Capacity If Debt Capacity Grows 2% a Year Debt as of June 30, 2017 Debt Capacity as of Nov 2016 If Debt Capacity Remains Constant (no growth) 1,400 1,200 1, Possible Future Debt Near Term Planning Approved Debt Current Actual Projection

27 World Class Support for World Class University Education Research Outreach Mission Colleges Depts. Institutes Centers Etc. HR, Etc. Finance IT Infrastructure Physical Infrastructure Actions Support 27

28 Changing University Requires Changing Culture World Class Research University Needs World Class Support Units Higher expectations and accountability More effective service delivery More cost efficient operations Metric driven management decisions Self supporting financially Continuous drive to get better Encouraging collaboration Looking at the impact on the institution rather than the unit Willingness to take calculated risks for bigger rewards 28

29 Changing World => Changing Roles Financial Administration = T Shaped Leaders BOUNDARY CROSSING COMPETENCIES Teamwork, communication, perspective, networks, critical thinking, global understanding, project management, etc. MANY DISCIPLINES Understanding & Communications You MANY SYSTEMS Understanding & Communications Broader perspective of how actions affect university Better understanding of financial situation (unit & university) Increased use of financial information to make better informed management decisions DEEP IN AT LEAST ONE DISCIPLINE Analytic thinking & problem solving DEEP IN AT LEAST ONE SYSTEM Analytic thinking & problem solving Deeper knowledge of cost structures/systems Clearer view of impact current processes have on overall effectiveness and cost 29

30 Multiple Approaches to Increase MSU Knowledge and Understanding Process review (mapping) and revision Project management training Benchmarking performance and costs Bookkeeping to accounting basics training Financial administrator training HR administrator program being developed Executive Leadership Academy 30

31 Sharing New Knowledge and New Reports Help Us Make Better Decisions You were hand picked to participate and represent the units on campus You each bring a variety of knowledge and skills I expect you to teach and mentor each other (and us), as well as learn We will succeed together failure is not an option 31

32 Continuous Improvement Project Management Observe Modify Map Process Process Mapping Benchmarking Analyze Measure Business Intelligence Metrics 32

33 Thank you for your participation! Mark P. Haas Vice President for Finance and Treasurer E mail: haasmark@msu.edu Phone: (517) \\evpas.campusad.msu.edu\public\staff - Individual Folders\Haas, Mark\Financial Administrator Development\ Program\Speaker Presentations\Oct 2017\Haas Welcome.pptx 33