Optimized Budgeting and Reporting for Higher Education – 2024 Virtual Solutions Summit

Optimized Budgeting and Reporting for Higher Education

Timestamps

Virginia Commonwealth University | Session Overview:

Speakers:
David Patrick | Director of Budget, Analysis and Financial Planning
Brian Brennan | Budget Analyst

  • 0:12 – Speaker Introductions for Virginia Commonwealth University
  • 1:04 – Overview of VCU and Student Demographics.
  • 2:00 – VCU's Operating Budget Breakdown
  • 2:53 – Revenue Sources and Recent Changes
  • 3:30 – Expense Allocation and Inflation Impact
  • 4:25 – Reasons for Using Synario
  • 5:52 – Capital Projects and Debt Service Levels
  • 6:30 – Strategic Prioritization of Projects
  • 7:41 – Introduction to Budget Planning and Treasury Integration
  • 9:00 – Tuition Summary and Financial Outlook
  • 12:00 – Salary Summary and Expense Planning
  • 16:00 – Three-Year Financial Plan Overview
  • 18:49 – Linking Budget Decisions to Financial Statements
  • 26:34 – Scorecards for Moody's and S&P Ratings
  • 31:28 – Monitoring Cash Rations and Capital Planning
  • 33:38 – Q&A

Effective Budgeting, Reporting,
and Treasury Management

At the recent Synario Virtual Solutions Summit 2024, David Patrick and Brian Brennan from Virginia Commonwealth University (VCU) shared insights into their strategic financial management practices. VCU, a prominent institution in higher education, has implemented innovative solutions to enhance budgeting, reporting, and treasury management, ensuring the university's financial stability and growth.

Virginia Commonwealth University Landscape

VCU serves a diverse student body of 28,594 students across undergraduate, graduate, and professional programs. With a significant portion of students being first-generation college attendees and Pell Grant eligible, VCU is committed to providing accessible and high-quality education. The university's graduates significantly out-earn high school graduates, highlighting the value of higher education at VCU.

  • Student Demographics
    • 28,594 students across all degree level
    • 37% of freshmen are first-generation college students
    • 33% of undergraduates are Pell Grant eligible
    • 91% of students are Virginia residents
Virginia Commonwealth University

Budgeting Strategy Software Advantages

VCU's all-funds operating budget stands at approximately $1.6 billion, excluding the health system. The budget is divided into designated funds (52%) and education and general funds (48%). The university's revenue is primarily supported by tuition and fees (58%) and state funding (39%). VCU has adapted to changes in enrollment and state funding, emphasizing the importance of accurate budgeting to meet financial targets.

  • Budget Breakdown
    • Total Operating Budget: $1.6 billion
    • Designated Funds: 52%
    • Education and General funds: 48%
  • Revenue Sources
    • Tuition and Fees: 58%
    • State Funding: 39%
    • Auxiliary: 3%

VCU has integrated Synario into their budgeting process to enhance accuracy, flexibility, and strategic planning. The platform allows VCU to model various financial scenarios, which is crucial for effective budgeting.Synario's scenario analysis capabilities allow VCU to explore different financial outcomes based on varying assumptions. For example, they can model the financial impact of different tuition rate increases or changes in state funding. This helps VCU prepare for various financial situations and make informed decisions about budget allocations.

The platform facilitates collaboration between the Budget Office, Treasury Office, Controller's Office, and Office of Academic Affairs. This ensures that all departments are aligned and working with the same financial data. Consistent reporting and a unified framework improve communication and coordination, leading to more effective budgeting.

“This three year model is really what we use to prioritize our needs and build the overall budget, and then communicate that to our leadership team"

– David Patrick, Director of Budget, Planning and Analysis,
Virginia Commonwealth University

Budgeting Reporting Meeting

Bridging the Gap Between Finance and Treasury 

With the ability to house the financial data from different departments, Synario has become a centralized hub for different departments to engage in the planning process. By increasing the ease of information sharing, the collaboration between the finance and treasury departments has improved. This has lead to a better planning process for capital projects, as the long-term effects of these projects can now be tied to operational finances, giving a more complete picture of institutional health into the future.

Financial Reporting & Communicating with Leadership 

VCU takes advantage of Synario's reporting capabilities. Synario has revolutionized their approach to both credit rating meetings with Moody's and S&P, as well as presenting their financial future to leadership. Without some of the error prone tendencies of spreadsheets, VCU is able to move fluidly through their presentations, and even adjust reports on the fly – helping to further explore 'what-if' scenarios, and improve communication between non-finance stakeholders.