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University of North Dakota
Budget Office Annual Report
FY2008 (July 1, 2007-June 30, 2008)
October 12, 2008
Submitted By:
Alice Brekke
Assistant to the President and
Budget Director
Table of Contents
EXECUTIVE SUMMARY ................................................................................................ 3
ORGANIZATION ............................................................................................................ 4
MISSION OF THE UNIT .............................................................................................. 4
STATE OF THE UNIT .................................................................................................... 4
STATE OF UNIT - HUMAN RESOURCES ............................................................... 5
Professional development: ................................................................................... 6
STATE OF UNIT-THOSE WE SERVE-THE UNIVERSITY ................................... 8
STATE OF UNIT-THOSE WE SERVE-STUDENTS ............................................... 9
STATE OF UNIT-THOSE WE SERVE-EXTERNAL CONSTITUENTS AND
OTHER STAKEHOLDERS .......................................................................................... 10
STATE OF UNIT - PROGRAMMING ....................................................................... 11
STATE OF UNIT - FISCAL AND PHYSICAL RESOURCES .............................. 11
EVALUATION ................................................................................................................ 11
ACCOMPLISHMENTS OF STRATEGIC GOALS................................................... 11
OTHER ASSESSMENT AND EVALUATION ACTIVITIES ................................. 14
Strategic Initiatives - Priority Action A –Quality Curriculum ............... 14
Strategic Initiatives - Priority Action B – Commitment to Research . 14
Strategic Initiatives - Priority Action C – Serve the People................... 15
Strategic Initiatives - Priority Action D-Improve Campus Climate ..... 15
Strategic Initiatives - Priority Action E-Stabilize Enrollment ................ 16
Strategic Initiatives - Priority Action F-Optimize Information
Technology ................................................................................................................ 16
Strategic Initiatives - Priority Action G-Resource Development ........ 16
Strategic Initiatives - Priority Action H-In Support .................................. 16
University of North Dakota, Budget Office ................................................................ 19
Page 2 of 19
University of North Dakota
Budget Office Annual Report
Fiscal Year 2008
Contact:
Alice Brekke
701.777.2506
alicebrekke@mail.und.nodak.edu
EXECUTIVE SUMMARY
Staff in the Budget Office participated in staff retreats and created individual accounts of
accomplishments and ongoing projects during FY2008 for performance review, individual
goal setting, and overall departmental goal setting, strategic planning and reporting. The
following report summarizes the activities highlighted in individual accounts and staff
meetings.
The Budget Office played a significant role in a number of University strategic fronts during
FY2008. Assistance to the Division of Research regarding complex agreements and federal
costing was provided by staff as the University Research enterprise surpassed $100 million
by the close of FY2008. Staff continued in an advisory role regarding challenges associated
with the cooperative agreement between UND’s National Suborbital Education and Research
Center (NSERC) and NASA, as well as serve on the President Search Committee, Vice
President for Research Search Committee, and Athletic Director Search Committee.
Leadership was also provided on the Division I Commission resulting in an initial 5 year pro
forma as well as other recommendations to guide the transition.
The proposal for the distribution of F & A recovery was completed in FY2007 for final
approval at the start of FY2008. New benchmarks were also established for Facilities &
Administrative (F&A) recovery for periodic review. Staff quickly began work to review the
existing F&A model to define strategies to increase the next rate agreement effective in
FY2010.
Ongoing efforts and dialogs throughout FY2008 revolved around improving the overall
functioning and functionality of PeopleSoft to support UND operations. Staff focused on
reports/data for managing the appropriation, resolving issues with tuition and fees; and
developing data/methods to track revenue collections and project fiscal year totals based on
actuals. The position budget web application continues to improve with updates added
based on departmental requests each year.
The competency of the staff to produce quality results and strong team effort to improve
the information flow has been demonstrated throughout the four years post PeopleSoft
implementation. A multitude of process changes have resulted from identifying and solving
problems, while recognizing the high degree of integration. The dedication and persistence
of staff must certainly be acknowledged. The results are very encouraging, the attitudes are
positive, and we still have much to work towards.
As we look to FY2009, we continue to evaluate the information needs for decision making,
information flow and internal mechanisms for meeting those information needs. A planned
effort to develop resource allocation policy and procedure recommendations to position the
institution for growth in distance offerings has started with the Provost and Vice President
for Student and Outreach Services. And finally, the Director and staff are expected to
provide much assistance in preparation for institutional leadership transition.
Page 3 of 19
ORGANIZATION
The Budget Office operates with six full time staff positions; however, the Data Analyst
position is currently filled with an 80 percent schedule. The Director of the Budget Office
reports to the University President, with four of the office staff reporting to the Budget
Director. A new position was added in February 2008 to work with the Facilities and
Administrative (F & A) rate process to optimize cost recovery and assist the Institution with
minimizing its compliance risk related to sponsored projects. Federal cost compliance is an
integral part of this responsibility. This position reports to the Cost Analyst however there is
an expectation that the work performed is in cooperation with and in support of the Division
of Research.
MISSION OF THE UNIT
The Budget Office mission is to serve the University of North Dakota in partnership with all
units to facilitate responsive and effective planning, budgeting and costing services.
Core responsibilities consist of the facilitation and preparation of the both the annual and
biennial budget, ongoing resource allocation, the integration of planning and budgeting,
facilities and administrative (indirect) rate development and negotiation, recharge center
rate development, cost recovery, and other projects as needed. In cooperation with the
Division of Research, the Budget Office shares in the responsibility for federal compliance by
facilitating discussion and decision making as well as drafting policies and procedures.
STATE OF THE UNIT
The reports of the past few years have been heavily focused on the PeopleSoft
implementation, revision to staffing/responsibilities/processes resulting from the
implementation, and the need to find ways to return to more reasonable work expectations
after the stress and long hours associated with the implementation. FY2008 has been a
year to really use the system and work towards optimizing how the software can truly
support the business functions of the University of North Dakota. We have now been able
to view the software as a tool rather than an excuse. With that change in perspective, staff
members now have current position descriptions that define expectations, duties and
responsibilities. Staff workloads are significantly improved, and the department’s response
time to requests for data/information is once again normal.
The Budget office processes all local and appropriated Budget Journals. During FY08 10,969
lines were entered by the Administrative Assistant. Note: The upgrade of PeopleSoft
Finance to version 9.0 reduced data entry by eliminating the entry of “Parent” line items.
The “parent” budget levels are automatically determined by the “child” budget level.
The Budget Office underwent a remodel to accommodate an additional workspace.
Interruption of work was minimal and the resulting office layout is more functional and
efficient, and a small meeting space was retained.
The Director worked closely with Continuing Education, Academic Affairs and the Council of
Dean’s to formulate a tuition distribution model intended to increase online offerings by the
University. The model was implemented during the summer. Feedback and college
discussion are expected to refine the process during FY2009.
Page 4 of 19
The new F&A distribution model was implemented in FY2008. Each Department/College
established a distribution policy approved by the Provost and VP of Research. Distributions
continue to be made quarterly.
Preparations for the F&A proposal throughout FY2008 included several meetings and
communications with the consultants and university departments. Full space surveys were
completed for 13 departments. Financial data cleanup in conjunction with Accounting
Services was also necessary to ensure accurate disclosure.
Five new reports were developed and tested in FY2008 for use starting in FY2009 for the
position web application used to support preparation of the annual budget. New reports are
a result of valuable feedback and suggestions from application users.
Staff in the office continues to support the budget planning/monitoring and accounting
functions of the President’s Office, University Relations, and the Athletics department. In
addition, assistance is provided as needed in support of budgetary functions of the colleges
under the Vice President of Academic Affairs.
STATE OF UNIT - HUMAN RESOURCES
The Budget Office staff consists of the following positions and the corresponding FTE:
Alice Brekke, Assistant to the President/Budget Director (1 FTE)
Cindy Fetsch, Budget Analyst (1 FTE)
Dawn Pladson, Cost Analyst (1 FTE)
Trinity Bohlman, Cost Compliance Analyst, (1 FTE)
Cynthia Prom, Data Analyst (0.8 FTE)
Tina Azure, Administrative Assistant (1 FTE)
The Budget Office staff has 67 combined years of service to UND with an average of 11.23
years. The Director has served the University for over 29 years. The Administrative
Assistant position was vacated in April 2008 by Cherylyn Stoltman, who continues her
employment with the University at the Center for Rural Health. The new position provided
an opportunity to utilize a BBA in Management from the UND College of Business and Public
Administration received in August of 2007. Her position was filled in April, 2008 by Tina
Azure. Tina is new to the University of North Dakota but not to Higher Education. Tina has
extensive office management experience and was formerly employed at Turtle Mountain
Community College.
A new Cost Compliance Analyst position was created in FY08 to assist with the F&A proposal
and to support the Cost Analyst in activities associated with optimizing cost recovery.
Trinity Bohlman was hired in February, 2008 and reports to Dawn Pladson. Trinity is a UND
Alumnus that was employed by a local public accounting firm for the past 5 years in the
areas of tax and audit.
Professional Memberships:
American Institute of Certified Public Accountants (AICPA)
Council on Governmental Relations (COGR),
Society for College and University Planning (SCUP)
Institute for Management Accountants (IMA)
National Association of College and University Business Officers (NACUBO)
National Association of College and University Research Administrators (NCURA)
NDSCPA-Grand Forks Chapter
North Dakota Society of Certified Public Accountants (NDSCPA)
Page 5 of 19
Professional development:
PeopleSoft Query Training Course
Query Writers working group
U2 Purchasing Policies & Procedures
U2 Fiscal Year End Procedures
U2 Budgets Overview Inquiry
U2 Records Retention & Email
U2 PeopleSoft Account Numbers
U2 Running, Reading & Reconciling Key Finance Reports
U2 Travel Policies & Procedures Workshop
Facilities Discoverer Reports Training
SAS User’s Group Meeting
Society for College and University Planning Annual Meeting
Central Association for College and University Business Officers Annual Meeting
University Courses: Former employee, Cherylyn Stoltman graduated with a BBA in
Management from the UND College of Business and Public Administration.
Alice Brekke, Assistant to the President and Director, Budget
Professional Development, Conference, and Committees:
Society for College and University Planning Annual Meeting
Central Association for College and University Business Officers Annual Meeting
President’s Cabinet
125th Anniversary Planning Committee
Division I Transition Advisory Committee
Annual Reporting Team
Enrollment Management Summit
Investment Committee (budget liaison)
University Planning and Budget Committee
University Fee Allocation Committee (Chair)
University Fee Committee (resource person)
Research Council
Vice President for Research Search Committee
Presidential Search Committee
Athletic Director Search Committee
Capital Campaign Coordinating Council
F&A Consultant Selection Committee
State Board of Higher Education, Budget, Audit and Finance Committee (campus
representative)
NDUS Administrative Affairs Council (attend as needed)
Professional Membership:
Council on Governmental Relations (COGR),
Society for College and University Planning (SCUP)
Institute for Management Accountants (IMA)
National Association of College and University Research Administrators (NCURA)
National Association of College and University Business Officers
Professional Certifications:
Certified Management Accountant
Certified Research Administrator
Page 6 of 19
Dawn Pladson, Cost Analyst
Professional Development, Conference, and Committees:
Query Writers working group
Tax Practitioner's Institute, Fargo, sponsored by North Dakota Society of CPAs
Renewable Community and Empowerment Zone Tax Incentives Workshop
North Dakota HEUG Conference 2008
F&A Consultant Selection Committee
Professional Membership:
American Institute of Certified Public Accountants (AICPA)
NDSCPA-Grand Forks Chapter
North Dakota Society of Certified Public Accountants (NDSCPA)
National Association of College and University Business Officers (NACUBO)
Professional Certifications:
Certified Public Accountant
Community Involvement:
Church school teacher - 6th grade team teacher
Member of St. John Church Membership and Growth Committee, Mission Endowment
Committee, Jr. Lutheran Youth Organization (LYO), Audit Committee, and Rachel Circle
Member of Hatton/Northwood Booster Club
Member of Hatton School Music Parents
Founding committee member of Hatton Parent Teacher Organization
Advisory member of Hatton School Title I program
Member of Hatton Community Club
Steering committee member for fund raising event that raised over $20,000 for an ill
Teacher/community member
Cindy Fetsch, Budget Analyst
Professional Development, Conference, and Committees:
Query Writers working group
North Dakota HEUG Conference 2008
Presented at the North Dakota HEUG 2008 Conference “Lifecycle of a Retroactive
Distribution.”
125th Anniversary Planning (assist Finance Committee chair)
Finance Production Team (PeopleSoft)
U2 Budget Overview Committee
U2 Committee for course on Running, Reading, and Reconciling Key Finance Reports in
PeopleSoft
Professional Membership:
National Association of College and University Business Officers (NACUBO)
Community Involvement:
Soccer Coach
Substitute Sunday School Teacher
Red River High School Booster Parent
Cynthia Prom, Data Analyst
Professional Development, Conference, and Committees:
NACUBO Managerial Decision & Analysis Training
North Dakota HEUG Conference 2008
PeopleSoft Query Training Course
Page 7 of 19
SAS User’s Group
Query Writers working group
Finance Production Team (PeopleSoft)
Student Finance Production Team (PeopleSoft)
Annual Reporting Team
Professional Membership:
National Association of College and University Business Officers (NACUBO)
Community Involvement:
Optimist Club board member and treasurer
Trinity Bohlman, Cost Compliance Analyst
Professional Development, Conference, and Committees:
NACUBO 2008 Facilities & Administrative Rates conference
U2 Travel Policies & Procedures Workshop
Facilities Discoverer Reports Training
Community Involvement:
Jaycee member and committee chair
Tina Azure, Administrative Assistant
Professional Development, Conference, and Committees:
U2 Purchasing Policies & Procedures
U2 Fiscal Year End Procedures
U2 Budgets Overview Inquiry
U2 Records Retention & Email
U2 PeopleSoft Account Numbers
U2 Running, Reading & Reconciling Key Finance Reports
Professional Membership:
National Association of College and University Business Officers (NACUBO)
STATE OF UNIT-THOSE WE SERVE
STATE OF UNIT-THOSE WE SERVE-THE UNIVERSITY
Budget Office staff initiated and/or attended numerous meetings with individuals,
departments and divisions to make presentations, respond to questions, discuss process,
and work through issues related to the budget such as resource management and resource
allocation. The Director is regularly involved in meetings of the Staff Senate, Council of
Deans and the University Planning and Budget Committee to inform on budgetary and
appropriation issues/concerns. Many of these meetings include discussion of institutional
policies and priorities in the context of strategic direction. As requested, updates are
provided for meetings such as Division of Research Retreat, University Senate and
University Council. Additionally, campus leadership is provided by the Director for SBHE,
Legislative, and University discussion regarding topics such as the funding models,
tuition/fees, development/ implementation/revision to policies (for example, waivers), and
federal costing facilities and administration (F & A) cost recovery.
Specific initiatives of the department this year focused on the tracking and funding of
Athletic scholarships; better tracking of utility expenditures, restructure of student fees for
billing simplification, and development of an investment fund database for better tracking
Page 8 of 19
and reporting of revenues. The Director was also involved in discussions of the long term
tuition plan and capital replacement funding of the wellness center.
2008 marked the 125th Anniversary of the University. Among the many celebrations,
planning began in FY08 for Convocation activities to commemorate the University’s
anniversary. Budget oversight was provided for the Academic Convocation planning for Phil
Jackson on August 25, 2008. The 125th Convocation planning was lead by VPSOS in
collaboration with Athletics, Alumni, and University Relations.
The Director was greatly involved in the upcoming change of institutional leadership through
participation in the search committee and transition planning. The transition of leadership
to the new President will be an important role throughout FY09 for the Director in the
capacity of assistant to the President for special projects and for the 2009 61st North Dakota
legislative assembly.
The approved F & A reallocation plan was implemented in FY08. Once the revised plan was
approved, the implementation went very smoothly from both a budgeting and a cash
management standpoint. Budget Office staff will be preparing data for review at the
completion of the fiscal year.
Both the Medical School and Energy & Environmental Research Center (EERC) Memorandum
of Understanding were re-negotiated in FY08 with the assistance of the Budget Director.
The department was also asked to assist in the collection of data for the Medical School
performance audit.
On February 26, 2008 the Budget Office hosted an annual budget kickoff session. This
session provides great opportunity to inform the campus community about budget
guidelines and process. Comments and suggestions to improved budget process are also
solicited.
Budget Office staff continues as an active partner with the Office of Institutional Research to
provide core data for the Annual Reporting web site, to inform the campus community about
the annual reporting format/tools and to improve tracking in support of the institutions
strategic plan. As a result of these efforts departments and administration have data
readily available to assist in both managerial and budgeting decisions. UND is also better
positioned to respond to surveys and requests for information.
In addition, budget personnel worked closely to assist new staff members and therefore
build stronger relationships with various University departments such as:
President
Admission’s Office Director
Athletic Director
Athletic Business Manager
Student Financial Aid
University Relations
Budget Office staff has also worked with a number of departments to prepare fee proposals
(Nursing, Teaching and Learning, PXW to name a few).
STATE OF UNIT-THOSE WE SERVE-STUDENTS
The Budget Office staff worked with projects involving student government leadership this
past year including discussion of student fee increases for FY09. The Budget Director met
with Student Senate to make a presentation about the projected tuition and fees increase
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and to hear questions/concerns. Other meetings and discussions with student government
representatives occurred to provide opportunity for a complete understanding of the
institution’s decision to move Athletics to NCAA Division I and the resulting costs.
In addition, Student Government appoints student representatives to serve on the
University Fee Allocation Committee, which is chaired by the Budget Director. This
committee makes recommendations to the President on new funding allocations supported
by student fees. During 2008-09, new funds were not available so the committee was not
convened.
A number of meetings occurred with the Student Government Treasurer as well as with the
Executive team to discuss changes in how the tuition for on-line course offerings is charged,
the corresponding assessment of mandatory student fees, and the implementation of
changes to consolidate the assessment of mandatory student fees. The Budget Director
continues to serve as a resource person to the Student Government Treasurer.
STATE OF UNIT-THOSE WE SERVE-EXTERNAL CONSTITUENTS AND OTHER
STAKEHOLDERS
Legislature: During the spring of 2008, the Budget Office prepared the 2009-11 biennial
budget submittal. This request reflects the overall priorities of the institution in the context
of the North Dakota University System priorities.
Legislative Council staff made a campus visit on April 16, 2008 to meet with the Budget
Director, Associate Director of Facilities Planning and the Medical School Associate Dean for
Administration and Finance. The purpose of the meeting was to gather information relating
to the status of state agency and institution appropriations for the 2007-09 biennium,
agency compliance with legislative intent, use of 2007-09 one-time funding, and major
budget issues for the 2009-11 biennium. Funding pressures and challenges were discussed
as well as the overall status of the institution and priorities going into the budget process.
Information was provided on the 2007-09 budget, legislative intent issues, major plant
improvement needs, and budget issues for the 2009-11 biennium. OMB staff made a
similar visit later in the summer 2008.
The Director and Budget Analyst facilitated the preparation of the FY09 annual budget
including rate, salary increase and resource allocation decisions in the context of the Higher
Education Roundtable, the UND Strategic Plan and informed by available data/information
as a result of the 60th Legislative Assembly.
State Board of Higher Education/North Dakota University System: The Budget Director
served as the liaison to the Board of Higher Education Budget and Finance Subcommittee,
representing both UND and NDSU. This role will shift to NDSU effective January 1, 2009
(assignment rotates each year). Due to changes in staffing at NDSU, the Budget Director
has served in this capacity for the multiple years. The Budget Director also attends the
Administrative Affairs Council meetings as needed.
Consultants: In the summer of 2007, UND engaged Huron Consulting Group to prepare a
master plan of strategies and investments to maximize the FY2008 Facilities and
Administrative cost rate calculation. An agreement was executed as a result of committee
work that included Budget Office staff. The Cost Analyst worked closely with Huron on
comprehensive compliance, organizational review/assessment and the F&A work plan phase
of the agreement throughout FY08. Progress continues on this project.
Page 10 of 19
Community Service: Staff in the Budget Office is involved in a variety of community
activities including: religious instruction, church leadership, service club members and
leadership, school booster members, lake property owners association, PTO, Youth League
Coach, and other community, school and church activities.
STATE OF UNIT - PROGRAMMING
Programming occurred through meetings with departments, committees, and individuals.
Additionally, the Budget Analyst presented a at the North Dakota HEUG 2008 Conference a
training session “Lifecycle of a Retroactive Distribution.”
STATE OF UNIT - FISCAL AND PHYSICAL RESOURCES
The Budget Office manages a number of institutional resource pools including student fees,
technology fees, application fees, fringe benefit pools and indirect cost recovery.
Expenditures and allocations from the institutional pools totaled $37,024,764 for FY08.
The office operating budget is maintained in a distinct department and consists primarily of
payroll, travel (professional development), data processing, remodeling, and other office
expenses (communications, office supplies and duplicating). The Budget Office completed
FY2008 within budget with total expenditures of $463,569. The funding comes from a
combination of appropriated and local allocation funds.
EVALUATION
The success of the University’s Strategic Plan and major University initiatives such as
PeopleSoft, competitive compensation, and deferred maintenance is directly tied to the
University’s budget. The Budget Office worked diligently throughout FY2008 to
educate/inform the campus community about the status of the budget and therefore impact
the status of key initiatives and accomplishment of strategic goals. The office is committed
to its mission of serving the University in accomplishing current and future strategic goals
through informed budgetary planning.
ACCOMPLISHMENTS OF STRATEGIC GOALS
Budget Office Goal 1 - Clearly identify the expected mission of the Budget Office and define
responsibilities that are consistent with the stated mission.
Mission and responsibilities have been identified.
Staff assignments were reviewed during 2008 and are consistent with mission and
responsibilities.
Continually evaluate opportunities for staff to attend training and other development
sessions to ensure staff ability to meet assigned responsibilities.
As new (or replacement) staff are hired, review of assigned responsibilities has
occurred. Priorities for professional development opportunities have also been
discussed.
Budget Office Goal 2 - Provide leadership in evolving the current budget process into one
that links budget more pro-actively with planning by facilitating institutional decisions about
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use of resources and that includes broad campus participation (this applies to both annual
and biennial budgets).
As a liaison to the SBHE Budget, Audit and Finance Committee, the Director worked
to inform the development of budget guidelines to support the strategic priorities of
the University of North Dakota in the context of SBHE priorities.
The University Planning and Budget Committee (UPBC) met in budget mode on
October 22, 2007 to discuss the tuition benefit for dependents of UND faculty and
staff and again on February 13, and 23, 2008 to discuss FY09 budget guidelines,
FY08 Budget Status, and to review recent budget allocations and priorities of the
2009-11 biennial budget. Ballot measures with impact on state funding resources
were also discussed.
Meetings of the UPBC during FY08 focused on the annual budget process schedule
and timeline for FY2009; proposed tuition, fee, and salary increases; dependant
tuition waivers, the long-term tuition plan for the law school; and the capital
campaign goal. The resource allocation model for Academic Affairs was completed
and utilized to inform FY09 budget discussions.
University leadership has recognized the importance of technology-based delivery of
courses both as a geographical need of the state and as a learning preference by
students. Through collaboration of the Council of Deans, Continuing Education, the
Budget office and the office of the Vice President of Academic Affairs, an agreement
was reached to design more online courses and allocate tuition directly to each
college and continuing education. A 60/40 allocation model was implemented during
summer 2008. Each college received a budget based on estimated enrollment for
staff salary and other support of online courses. Sixty courses were offered online
for a total of 1,851 undergraduate credits and 616 graduate credits during the 2008
Summer term. Over 40 additional courses are being offered for the FY2009 Fall
term.
The Annual Reporting Team (ART) met periodically through the year and focused on
the various uses of annual report data.
Budgetary guidance was provided to evaluate funding for capital equipment
replacement reserves at the Wellness Center.
Assistance was provided for establishing base funding in support of international and
graduate recruiting efforts.
Budget Office Goal 3 - Facilitate preparation of the biennial budget to request resources in
support of the institutional strategic plan.
With input from the UPBC, Council of Deans and the President’s Cabinet, the 2009-
11 biennial budget was submitted in July of 2008. The biennial budget includes
description of institutional priorities for use of resources with direct connection to the
UND strategic plan and the ongoing evaluation of accomplishments. This was the
direct result of UPBC efforts over fiscal years 2006, 2007, and 2008.
Materials developed in support of the 2009-11 budget request reflects the NDUS long
term finance plan and flexibility with accountability embraced by the Higher
Education Roundtable.
The information presented in the biennial budget request will be utilized directly in
making the case for funding during the Legislative hearing process.
Budget Office Goal 4 - Facilitate preparation of the annual budget as the spending plan
which supports the departmental and institutional strategic plans.
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With input from the UPBC, Council of Deans, the President’s Cabinet and all campus
departments, the FY09 annual budget was submitted in June of 2008.
Administrative staff in all divisions worked diligently to meet very short timelines.
Budget Office staff successfully performed a central review/compilation of the web-
based position budget application, prepared the data for upload, and completed the
upload for the FY2009 annual budget. Based on feedback from department users,
updates/improvements to the web application are planned for the next year.
Facilitating the annual budget requires coordination of 180 “departments” for UND
and 36 “departments” for the Medical School. The annual budget represents a
spending plan which includes
- 3,188 single occupant positions for FY08
- 1,948 separate funds for FY08
The quality of the annual budget in part derives from the accuracy of actual
expenditures. The Budget Office has primary responsibility for payroll corrections
through the retro distribution process in PeopleSoft. During FY08 a total of 281
retros were processed as compared to 378 for the prior year and 731 for FY06. The
decrease in the number of retros is evidence of the increased comfort of department
staff in monitoring their fund/payroll activity in PeopleSoft and increased diligence in
processing adjustments in a timely manner.
The total FY09 annual budget for the University of North Dakota (including the
School of Medicine and Health Sciences) is $399,732,717 as compared to
$393,241,927 for FY08, $363,346,276 for FY07, and $362,816,501 for FY06. Due to
the procedures used for budgeting recharge centers and transfers, these amounts
are higher than the expenditures that will be reported for financial statement
purposes for each referenced year.
As a result of work done for annual reporting, accountability measures, the Academic
Affairs resource allocation model, and various tuition models more data are available
to inform budget discussions and decisions. Examples include net costs as compared
to peer institutions and appropriated dollars per credit hour.
A pending needs database has been maintained by the Budget Office over the past
few years to readily track and report prior and current identified needs of the
President, cabinet and UPBC. Current resource constraints have resulted in fewer
needs being listed.
The FY09 annual budget included the second year of the F & A reallocation model in
support of the institutions strategic research goals. A summary of FY08 will be
prepared to assist in evaluation of the distribution model.
Budget Office Goal 5 - Provide leadership in the development of performance measures and
departmental reporting as part of the planning and budget process.
Budget Office staff prepare/update a variety of indicators annually that are used in
reporting, surveys and presentations at all levels of the institution. Major categories
of analysis include faculty salaries, tuition, awarded degrees, enrollment, revenues,
expenditures, and financial aid. Data is further analyzed against peer institutions,
regional and national averages, inflation, or computed per FTE student. Budget Office
staff participated in scheduled committee meetings dealing with annual reporting,
performance measures, strategic plan indicators and accountability. This group is
referred to as the Annual Reporting Team (ART).
Budget Office staff provided special assistance in budgeting and accounting/
reporting functions as needed during FY08 to the Athletics Department due to staff
vacancies. Staffing changes in the department and identified financial pressures
created the need for more focused consultation. This is a continuation from FY07.
Page 13 of 19
Budget Office Goal 6 – Assist departments and divisions in achieving their goals by
providing costing and rate development services including recharge centers and indirect
cost.
Provided rate and costing services/financial analysis to 38 recharge centers during
FY08. This resulted in approved costing methodologies supporting $25,021,000 of
budgeted activity as compared to $22,709,149 for FY07.
Completed annual proposal submission and rate negotiation for approval of a
compensated absences (VSL) rate for the EERC. The next rate proposal will be due
December 31, 2008 for revision effective FY10.
Worked with various UND departments on costing issues throughout FY2008 for non-
recharge areas - examples include Music Department, Mailing, Dining, and Facilities.
Provided documentation and information for federal compliance audit and to federal
auditors in areas relating to the F&A proposal and recharge centers, and to
government agencies for program specific audits.
Worked with both the EERC and the Medical School to create a revised F & A
distribution model that reflects the reality of the actual rate calculation and cost
recovery. Further discussion of the results will occur as a result of the next F & A
proposal development (in process during FY08 and FY09).
OTHER ASSESSMENT AND EVALUATION ACTIVITIES
The Budget Office provides budget, appropriation, and other financial data as requested by
departments to access and evaluate programs and activities.
Priority/Action Areas for the Present and Future
Strategic Initiatives - Priority Action A –Quality Curriculum
The budget office is actively involved in the evolution of the Academic Affairs resource
allocation model including the pilot funding model for summer session referred to as the
80/20 model as well as the 60/40 model for online courses.
In support of improving faculty salaries, the Budget Office includes reminders in the annual
budget guidelines that focus attention on this priority. Market salary data are also provided
and institutional progress in closing the gap between market and UND salaries is tracked.
Law tuition plan was developed that will provide resources to fund law school priorities. The
plan was partially implemented in 2008.
In support of goal 5, the University moved forward on the recommendation of the NCAA
Classification Task Force to compete in Division I athletics in all UND sports programs. The
Director participated in the work of the Division I Commission and led the subcommittee
that worked with Carr Sports Associates to develop a business plan for the next 5 years.
The Director continues to inform and advise as needed on the business plan and monitor to
actual performance.
Strategic Initiatives - Priority Action B – Commitment to Research
Collaboration with the Council of Dean’s, the Research Council and the President’s cabinet
resulted in approval of the new F&A distribution model for FY08. The new model includes
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allocations to the colleges for further distribution by each college to departments and
principal investigators. A transition plan for the Medical School was also finalized.
Work began with a consulting team to define strategies for the next F&A rate proposal that
will result in increased cost recovery. Collection of financial and space data was started in
FY08. Thirteen department surveys were completed. A new policy on graduate tuition
waivers separates the awarding of a waiver from the payment of a stipend (among other
changes). Grant and Contract proposals now must request sponsors to pay tuition rather
than waive tuition.
The Budget Director has continued in an advisory role to the University’s Division of
Research on challenging/unusual projects such as the DC8 aircraft cooperative agreement,
Research Enterprise and Commercialization(REAC) building and Northern Plains Behavioral
Research Center building. Assistance to the Interim VP was provided as needed and the
Budget Director is a member of the search committee for the next VP.
Strategic Initiatives - Priority Action C – Serve the People
Institutional leadership change impacts the University, Community of Grand Forks, and the
people of North Dakota. With the announcement by President Kupchella in January 2007 of
his retirement in the spring of 2008, a search committee for a new President was appointed
by the State Board of Higher Education. The Budget Director, along with the other
members from the campus, community and state interviewed several candidates and
recommended Dr. Robert O. Kelley for appointment. Dr. Kelley took office on July 1, 2008
as the University’s eleventh president. The committee was also instrumental in the planning
for the inauguration ceremony scheduled for September 12, 2008.
The Director is a member of the 125th Anniversary Committee and chairs the Finance
Subcommittee. This committee was formed in 2006 to plan the celebration year of the
Quasquicentennial Anniversary of the University. The celebration started in FY08 and
extended to the Community through a variety of arts, literary, academic, and entertainment
events. The budget director provided budget oversight of the planning for the 125th
Anniversary Academic Convocation of Phil Jackson on August 25, 2008. The planning
started in June of 2008 and was lead by the VP of Student Outreach Services and included
Athletics, Alumni, and University Relations.
Through collaboration with Academic Affairs and the Division of Continuing Education, a new
funding model was piloted in the summer of 2008 to increase the number of courses
delivered on-line. The model encourages diversity in our curriculum to appeal to both
distant and technology learners and therefore better serve the population of North Dakota.
Graduate school base funding for recruiting efforts.
Strategic Initiatives - Priority Action D-Improve Campus Climate
Budget office staff participated in numerous training and other professional conferences is
support of personal growth objectives.
Budget office staff led development of the spouse/dependent tuition waivers for 50% of
tuition and the resource implications of implementing the policy.
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The Budget Director proactively communicates regarding budget process and status,
Legislative and State Board of Higher education activities affecting resources and a variety
of other costing and policy issues to students, faculty and staff.
For FY08, the Budget Director was again invited to speak to the UND Leadership
Development group.
With the growth and development of Wellness programming and the opening of the new
student Wellness Center in September 2006, the Budget Office staff and the Director have
been actively involved in the resource planning.
Strategic Initiatives - Priority Action E-Stabilize Enrollment
The Budget Office supports all initiatives, including analysis of tuition models and waiver
programs, to stabilize and enrich the enrollment of the University through the budgetary
process.
Strategic Initiatives - Priority Action F-Optimize Information Technology
Ongoing participation by Budget Office staff on both the finance and student production
teams has occurred. These teams engage in interdepartmental discussions that have
resulted in process changes to improve the student Campus Connection experience
throughout the college career as well as improve the accuracy, efficiency and usefulness of
the finance and human resource systems.
Several staff members have been trained in creating custom queries of information from all
three modules of PeopleSoft for use in their job duties and have acted as a resource to
other departments as needed.
The Budget Office provides status reports on Technology Fee collections and reviews the
financial implications of allocation recommendations made by the Student Technology Fee
Committee.
Extensive work on retroactive distribution process continued.
Utilization of a database for collecting budget data and year to date activity continue and
staff continue to refine and add reports for users.
Strategic Initiatives - Priority Action G-Resource Development
As part of the FY08 annual budget, the Budget Director identified resources to support
increased development activity in preparation for a major capital campaign which is now in
the silent phase.
Based on the pro forma included in the recommendations made by the Division I
Commission and approved by the President, the Budget Director assisted in the
development of the case for impact scholarships.
Strategic Initiatives - Priority Action H-In Support
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Staff duties and compensation levels were reviewed during FY08 in support of keeping the
organization structure efficient and retaining quality staff.
The Budget Office continues to maintain the campus focus on salary improvement by
providing benchmarks and guidance as part of the annual budget process.
The Budget Office underwent a remodel to accommodate an additional workspace.
Interruption of work was minimal and the resulting office layout is more functional and
efficient, and a small meeting space was retained.
With the growth and development of Wellness programming and the opening of the new
student Wellness Center in September 2006, the Budget Office staff and the Director have
been actively involved in the resource planning.
The Budget Director proactively communicates regarding budget process and status,
Legislative and State Board of Higher education activities affecting resources and a variety
of other costing and policy issues to students, faculty and staff.
Budget Office staff initiated and/or attended numerous meetings with individuals,
departments and divisions to make presentations, respond to questions, discuss
process, and work through issues related to the budget such as resource
management and resource allocation. The Director is regularly involved in meetings
of the Staff Senate, Council of Deans and the University Planning and Budget
Committee to inform on budgetary and appropriation issues/concerns. Many of
these meetings include discussion of institutional policies and priorities in the context
of strategic direction. As requested, updates are provided for meetings such as
Division of Research Retreat, University Senate and University Council.
For FY08, the Budget Director was again invited to speak to the UND Leadership
Development group.
The Budget Office in partnership with Account Services and Financial Aid participated in
discussions regarding tracking and management of scholarship funds. From these
discussions, a new process for tracking and funding athletic scholarships was put in place.
Budget Office staff members participated in teams responsible for:
refinement of UND Foundation fund procedures.
using tuition remission to result in more departments funding their graduate student
tuition through grants and with funding received for instruction of online courses.
execution of EERC and Medical School Memorandum of Understandings.
better oversight and monitoring of deficits by the University community.
establishing new base funding for international and grad student recruiting efforts.
collecting and providing data for Medical School performance audit.
new model for utility payments and better tracking of utilities.
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University of North Dakota, Budget Office
University President
Dr. Robert O. Kelley
Budget Director & Assistant to the President
Alice Brekke
Administrative Clerk
Tina Azure
Data Analyst Budget Analyst Accountant/Cost Analyst
Cynthia Prom Cindy Fetsch Dawn Pladson
Compliance Analyst
Trinity Bohlman
Revised 6/30/08
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