Transitioning to a new budget model can entail cultural shifts and requires time and resources to develop new processes, train administrators and staff, and respond to possible staffing changes due to increased responsibility or the need for greater financial expertise.

Industry experts recommend a multi-year approach for this transition. Accordingly, UCF is planning a phased adoption starting this year through Fiscal Year (FY) 2022. This includes a “hold-harmless” period of at least one year so units can see the effects of changes without having to contend with sudden budget declines or windfalls.

One of the first steps in this process was to appoint a Steering Committee to serve as the principal advisory body. The Steering Committee is responsible for guiding the process to develop a new, all-funds resource allocation model that best aligns with UCF’s strategic direction, culture and values. Additionally, UCF retained the services of the Huron Consulting Group to support successful and timely engagement of campus stakeholders as the institution collaboratively assesses the current state of budgeting and redesigns a baseline model.

An illustration of the anticipated project timeline is depicted below, followed by more detailed information about each of the phases.

First Quarter (Q1): July, August, September
Second Quarter (Q2): October, November, December
Third Quarter (Q3): January, February, March
Fourth Quarter (Q4): April, May, June

Phase 1: Model and Process Design

Due Diligence and Visioning

Initial stakeholder engagement via interviews with college deans and other financial leaders to:

• Identify redesign considerations
• Engage academic and administrative stakeholders
• Define process Guiding Principles

Financial Model Development

• Discussions and input from Steering Committee to begin preliminary model construction
• Build model framework aligned to proposed allocations

Phase 2: Consensus Building

Expand stakeholder engagement to include campus stakeholders across the institution to:

• Review and evaluate preliminary model
• Gather model feedback from academic units
• Gather model feedback from administrative units
• Refine proposed model

Phase 3: Infrastructure Development

• Stress test proposed model
• Establish governance structures
• Review annual budget processes for new model
• Build scenario planning tool for units
• Conduct budget workshop sessions
• Facilitate training sessions on model
• Conduct high-level academic program analyses

Phase 4: Parallel Process

During this period, the current incremental process is maintained, while the new incentive-based model is run in parallel.

• Operate under current budget model and processes in FY 2021
• Provide reports and information for stakeholders to understand bottom-line under the new model
• Stakeholders analyze parallel data
• Model modified, as needed, to adjust for unintended implications or outcomes

Phase 5: Go-Live

Operate under parameters of the redesigned budget model starting in FY 2022 (July 2021). The model will be live, but this will be a “hold-harmless” period for stakeholders to understand and prepare for the financial impacts-negative or positive–of the new model when implemented for the first time in FY 2023 (July 2022).