Clarify UCOP budget presentation

Project Goals

To develop and implement a revised UCOP budget presentation that complies with the California State Auditor’s (CSA) recommendations (as indicated by figure 11 of their audit report). The updated budget presentation will incorporate improved use of actual and forecasted expenditures.

Additionally, the budget presentation will include all expenditures and reporting on all expenditures showing changes to the discretionary and restricted reserve balances. Lastly, the budget presentation will be consolidated into one budget presentation to include Permanent (termed “disclosed” by CSA) and One-Time Temporary (termed “undisclosed” by CSA) budgets.

Plan Assumptions

  • UCOP can report on actual expenditures versus budget, leveraging the current system and support provided by UCLA.
  • Changes to the general ledger and other associated financial systems will not interrupt reporting capabilities.
  • UCOP can implement improved forecasting tools and discipline to update projected in-year costs throughout the year, which can be used to improve budgets.
  • UCOP can provide visibility into One-Time Temporary budgets showing commitments against the reserve balance.
  • UCOP will leverage industry best practices (GFOA, NACUBO) in establishing the new format.
  • When implementing best practices, UCOP will work with key stakeholders and the Regents to determine the appropriate format and level of detail for Regents’ oversight.
  • 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 implement new policies, procedures, systems, and tools.
  • Fully 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. This significantly and negatively impacts staff productivity.

CSA Recommendations

By April 2018

Implement our recommended budget presentation shown in figure 11. Specifically, the Office of the President’s budget presentation to the regents should include a comparison of its proposed budget to its actual expenditures for the previous year. It should also include all its expenditures and identify changes to the discretionary and restricted reserves. The Office of the President should combine both the disclosed and undisclosed budget into one budget presentation.

By April 2019

Continue to present a comprehensive budget based on the presentation in Figure 11 to the regents, the Legislature, and the public.