Here is a sneak peek of an operating statement, produced with the help of Hyperion’s HPCM tool, to visualize the UFM. The output displays a combined summary report of all 11 UVa schools—just one of 60 potential views of individual and summary reports.
Today, the sneak peek includes the actual results for Fiscal Year (FY) 14 and for FY15 through October. Within the next several weeks, the summary will also include the FY15 budget using the UFM (a follow-up will be available after the translated FY15 budget is loaded in HPCM). So for now, here are some important highlights in the Actuals for FY14:
The columns compare current year results to the current year budget (still in process of being converted) and prior year actuals.
The summary at the top calls out the Operating Sources and Uses. For FY14, the Operating Sources are ($920M) and Uses are $984M, including a full allocation of undergraduate tuition revenue and Central Services costs. These values yield a Pre-Operating Margin of $76M that the leadership team can use as the basis for discussions on the level of University support required to fund the various schools and entities. This will ultimately populate in the section labeled “Specifically Designated Univ. Operating Support.” In keeping with accounting principles, revenue is shown as a negative number (Credit) and costs are shown as a positive number (Debit).
The data on these reports will refresh monthly, as revenue and costs are incurred by the units. Understandably, this report shows FY15 with roughly half of the direct revenue as FY14, since spring 2015 tuition revenue has not been published. And because revenue is frontloaded, it appears distorted earlier in the year. As costs are incurred, the actuals will close the gap to approach the forecasted budget.
The Line Items designated by “LI” in the rows are generated from Object Codes from the General Ledger (GL) and Expenditure Types from the Grants Accounting (GA) module in the Integrated System. The Operating Sources data comes from the GL, while the Operating Uses data comes from the GA; this allows us to view the complete operating statement in a single report (something that wasn’t previously possible in Discoverer).
Also unique to the UFM model and enabled by the HPCM tool is the allocation of certain revenues and central-service costs out to the schools and units. HPCM uses a combination of school enrollment and class credit hours to allocate out the Undergraduate Tuition to the eight undergraduate schools. The model uses a number of additional driver metrics to allocate central services costs—this can be seen in the rows beginning with “LI.CSAC” (central service activity clusters). A list of some of the most important Driver Metrics used in the allocation process can be seen at the bottom of the report.
Read more detail about how the UFM works.