UQ’s Budget Contribution Model An Overview VC Forum Head of Schools Workshop September 14, 2012 Introduction • What is the BCM? • BCM ~ Centre to Faculty • Structure of the BCM • BCM Drivers • University Funding Model – BCM Distribution • BCM ~ Income • BCM ~ Central Overheads • BCM ~ Infrastructure Support Costs UQ’s Budget Contribution Model What is the BCM? • Mechanism for distribution of income and allocation of costs • Not all income • Not all costs • A common misconception is that the BCM is the budget • The BCM is an input into the budget process UQ’s Budget Contribution Model What is the BCM? The BCM is used to: • Distribute CGS Block Grant income to Faculties and Institutes • Distribute CGS Research (Secondary Gains) to Faculties and Institutes • Allocate Central Overhead against Faculties and Institutes UQ’s Budget Contribution Model What is the BCM? The following income is not included in the BCM: • • • • Research Income Trading income Investment income Donations, Scholarships and Bequests The following expenditure is not included in the BCM: • Direct costs at Faculty and Institute • Capital Expenditure from tied income sources UQ’s Budget Contribution Model BCM ~ Centre to Faculty • The BCM is a conduit between the Centre and the Faculties and Institutes • The Faculty may in turn distribute income in accordance with its own mechanism • The Faculty may allocate costs in accordance with its own mechanism • Portion of Central Overhead as levied upon it • Allocation of Faculty Overhead • Running the Faculty Office • Faculty Initiatives (Strategic) UQ’s Budget Contribution Model Structure of the BCM • Income • CGS Block Grant • Secondary Gains on Research (Research Block Grant) • Tuition Fees • Deductions • Central Costs • Infrastructure Support Costs (Repairs and Maintenance, Insurance) • Strategic Initiatives • Debt Servicing • Capital UQ’s Budget Contribution Model BCM Drivers • Income distributed and costs (deductions) allocated to Faculties and Institutes on the basis of selected drivers • The cost or deduction driver is not activity based costing. • Has been determined as a reasonable proxy for resource usage • The drivers are influenced by UQ’s strategic objectives. • For example, Research EFTSL and Research secondary gains are not included in overhead calculations UQ’s Budget Contribution Model BCM Drivers ~ Income Item Driver CGS Block Grant Weighted Funded EFTSL Medical Loading Faculty of Health Science Regional Loading Faculty of Science Student Contribution Charge Weighted Funded EFTSL Enhanced Student Contribution Charge 40 % WFETSL, 30 % EFTSL, 30 % SECat T&L Performance / HEPP / ISP External Strategic Funding distributed directly by office of DVC A and SDVC JRE / RTS 40 % RHD EFTSL, 10 % RHD Completions, 40 % Research Income, 10 % Weighted Publications (ERA) APA Scholarships External Strategic Funding distributed directly by office of DVC R RIBG External Strategic Funding distributed directly by office of DVC R SRE Fellowships/Research Infrastructure support ex DVC R $4.8m Balance ~ Category 1 Income Weighted by ERA Index, 1/2 Institute Support, 1/2 Tuition Fees Direct to Faculties / Institute UQ’s Budget Contribution Model BCM Drivers ~ Costs • Drivers Include: • • • • • • • • Funded EFTSL Weighted Funded EFTSL International EFTSL Non Research EFTSL Staff FTE Space Total Income (BCM) iCEVAL • Examples: • Library • 50 % Staff FTE • 50 % Non Research EFTSL • DVC I • 100 % International EFTSL UQ’s Budget Contribution Model BCM Drivers ~ Costs Item Drivers Office of: Vice Chancellor Total Income, Non Research EFTSL, Staff FTE, International EFTSL Senior Deputy Vice Chancellor Total Income, Non Research EFTSL, Staff FTE DVC (Academic) Non Research EFTSL, Total Income, Funded EFTSL DVC (Research) Total Income, Non Research EFTSL, Staff FTE, International EFTSL DVC (International) International EFTSL DVC (External Relations) Total Income EDO Non Research EFTSL, Staff FTE, Space, International EFTSL, Total Income Strategic Initiatives Total Income, Funded EFTSL, Weighted Funded EFTSL, iCEVAL Infrastructure Support Non Research EFTSL, Staff FTE, Space, International EFTSL, Total Income Capital & Debt Servicing Non Research EFTSL, Space UQ’s Budget Contribution Model BCM Drivers ~ Data Sets Category Calculation/Data Source CGS Load Forecast data – Planning Office * Funding Index Tuition Fees - $ and EFTSL Tuition Fee Model JRE/RTS (4 indexes below) Research Income HERDC – Average of preceding two years Publications Average of preceding two years Awards Average of preceding two years, PhD weighted by 2 RHD Load Immediate prior year actual load Non Research EFTSL Addition of the above EFTSL streams (non research only) Space Faculty and Institute space – latest per Reportal FTE Census data at 31/3/2012 Total Income Total income per BCM less Research Block Grant less Enhanced Contribution Charge less Strategic Contribution UQ’s Budget Contribution Model University Funding Model ~ BCM Distribution Distributed through the BCM 2012 Total Effective Distribution to Faculties and Institutes $ 534 m 61 % of BCM Income > Faculties and Institutes $ 407 m * CGS Block Grant $ 448 m > Central Costs (1)$ 272 m * Research Block Grant $ 146 m BCM $882 m * Tuition Fees $ 288 m > Strategic Funding >Strategic Funding (2) $ (3) $ 58 m > Debt Servicing $ 15 m > Capital $ 47 m Note (1) ~ Much of these incurred on behalf of total UQ Note (2) ~ Discretionary Strategic Funding Note (3) ~ Direct Flow through for RIBG, SRE, APA Scholarships, HEPP Note (4) ~ In excess of 90 % of Strategic Funding flows back to Faculties and Institutes UQ’s Budget Contribution Model 83 m $ 127 m (4) Direct Revenue Distributions (2012) CGS Block Grant • C’wealth Contribution $269m • Student Contribution $167m Tuition Fees • International • Domestic Research Block Grants • JRE • RTS • SRE UQ’s Budget Contribution Model $258m $ 30m Domestic Load Modelling Tuition Fee Modelling FFI Faculties And Institutes $ 30m $ 56m $ 11m Research Performance Research Block Grants Research Income RHD Load RHD Awards Publications 40% 40% 10% 10% JRE RTS $ 30m $ 56m SRE $ 11m Category 1 Income moderated by ERA SRE $ 5m Fellowships/Infrastructure APA $ 20m Direct to Scholars RIBG $ 24m via DVCR Load Models One Commonwealth-supported domestic model Four international tuition fee models • • • • Undergraduate Postgraduate Coursework Postgraduate Research Non-award Three domestic tuition fee models • Undergraduate • Postgraduate Coursework • Postgraduate Research Load Models TOTAL EFSTL 2012 Actual by program CONTINUING EFTSL 2013 COMMMENCING 2013 Model Faculty Estimate TOTAL EFTSL 2013 Legend Known Value SCHOOL/SUBJECT AREA EFTSL SPLITS 2013 Based on Historical Patterns Modelling Process Faculty / Institute Input FUNDING BAND/COURSE FEE RATES 2013 Actual REVENUE By program, faculty etc Load Models CONTINUING EFTSL 2013 Model Granularity: Program and Program Year Retention: Semester on Semester Based on 3 year history Distribution: 1 year history (annualised) Schools Tuition Fee Band or CGS/SCC Band Load Models COMMMENCING 2013 Faculty Estimate Granularity: Semester Program (International) Program and Program Year (Dom) Faculty Funding Index BCM: • International tuition fees passed through ‘as earned • Domestic load weighted by Faculty Funding Index FFI Faculty Funding Index: • A multiplier that is applied to Faculties’ student load (EFTSL) to calculate the weighted student load (WEFTSL) • Representative of Commonwealth Funding Bands • Moderated for scale Faculty Funding Index Commonwealth Funding Clusters 2011 Data Faculty Funding Index Commonwealth Funding Clusters 2011 Data Faculty Funding Index Commonwealth Funding Clusters Arts 0.78 BEL 0.59 EAIT 1.24 Health 1.19 Science 1.30 SBS 0.84 2012: Variance “Theoretical” FFI to Actual FFI <.019 Questions?