Budgeting

The School has received updated endowment payout projections that reflect the continued market difficulties of the past several months. We have updated the endowment payout gap report that was sent in early February with the new parameters. An updated Excel workbook that calculates the projected amounts of the annual funding gap has been posted to the Endowment Income Projection subfolder in the Non-Salary View folder of the Finance Repository.

The School received new endowment payout projections last week that reflect the market difficulties of the past several months. For much of the past decade, endowment growth rates have exceeded expense inflation rates, and the extra funding coming from this spread has been available to support incremental activities in your department or program. The UBO is projecting the opposite situation for the next three years: that endowment growth will be less than expense rate growth, creating a widening funding gap. We write to alert you to these new projections so that you may begin factoring them into your financial forecasts and upcoming year budget. To make this situation more concrete, we’re placing an Excel workbook that calculates projected amounts of the annual funding gap in a new Endowment Income Projection subfolder in the Non-Salary View folder of the Finance Repository.

We have posted the final Operating Budget reports for the current fiscal year in the Repository on the H&S Finance website. We have added faculty salary information so that the complete operating budget for the unit can be seen in one place. All reports are presented in Excel so that they can be customized to meet your formatting and printing needs.

The project to replace the Excel workbook used for budgeting is nearing completion. An advisory group completed user acceptance testing and gave strong positive feedback on the new system’s design and functionality. Testing is nearly complete and go-live is scheduled for Tuesday, June 23rd. All users of the new budget planning system are required to have training. If you have questions about training or need help enrolling, please contact your Finance cluster liaison.

At the March 24th H&S Business meeting, we discussed with you our project to replace the Excel budget template that’s been used for many years. This project is nearing completion and the new system will be rolled out for the upcoming FY16 budget cycle.