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Budget Forum

Budget Forum. 19 August 2011 10am -12:30pm. Agenda. Opening: Pranay Lodhiya, Vice-President (Finance & Resources) / Chief Financial Officer Vision 2015: Paul Johnson, Vice-Chancellor Research Plan: Tim Brown, Deputy Vice-Chancellor (Research )

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Budget Forum

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  1. Budget Forum 19 August 2011 10am -12:30pm

  2. Agenda • Opening: Pranay Lodhiya, Vice-President (Finance & Resources) / Chief Financial Officer • Vision 2015: Paul Johnson, Vice-Chancellor • Research Plan: Tim Brown, Deputy Vice-Chancellor (Research) • Risk Management:Carl Gibson, Director, Risk Management Unit • University Planning Cycle and Operational Plan: David Ensor, Vice-President (Operations) / Chief Operating Officer • Student Load Projections:John Rosenberg, Senior Deputy Vice-Chancellor and Vice-President • 2012-2014 Budget • Key Financial Issues:Pranay Lodhiya, Vice-President (Finance & Resources) / Chief Financial Officer • budget approach and principles, BRG membership, income & expenditure projections: Tania O’Reilly, Director (Corporate Planning & Reporting) • where to from now?: Pranay Lodhiya, Vice-President (Finance & Resources) / Chief Financial Officer • Questions • Closing: Pranay Lodhiya, Vice-President (Finance & Resources) / Chief Financial Officer 10:15 -10:30 10:30-10:45 10:45 -11:00 11:00- 11:15 11:15- 11:45 11:45- 12:15 12:15-12:30

  3. Vision 2015 • Transform student lives through learning • substantially increase student enrolments • create new pathways for under represented students • ensure higher rates of student retention and success • Create new and useful knowledge • increase quantity and quality of research activity • produce more excellently trained research graduates • develop knowledge exchange programs • Support and reward staff excellence • attract and retain the best staff • maximise opportunities for outstanding performance • invest in staff development • Operate sustainably and ethically • become a sustainable organisation • operate in a financially sustainable manner

  4. Thank You Research Plan 2012-2015

  5. Research Plan 2012-2015 Professor Tim Brown Deputy Vice-Chancellor and Vice President (Research)

  6. Need for Plan • La Trobe has some excellent research performance, but great variability • The targets in the Plan from 2009 are largely on track but need consideration for the future • To do better, staff are the key to excellence • Hire • Develop • Retain • Focus investment to maintain and improve excellence Research Plan 2012-2015

  7. HOW ARE WE GOING? Research Plan 2012-2015

  8. Research Plan 2012-2015

  9. Research Plan 2012-2015

  10. Research Plan 2012-2015

  11. Research Plan 2012-2015

  12. ERA and La Trobe • 12 of 21 broad fields & 29 of 49 specific disciplines rated at or above world standard • Areas of excellence – parts of Faculty of Science, Technology & Engineering and Faculty of Humanities & Social Sciences especially • Need to make tough choices about our research investment • Continue investing in areas of strength • Identify areas to develop • Determine where to diminish or terminate support Research Plan 2012-2015

  13. Research Plan 2012-2015

  14. Staff research • 987 staff included in ERA – 21% with no reported publications; further 35% made no substantial contribution • Only 21% made substantial contribution to one or more of 29 specific disciplines judged to be at or above world standard Research Plan 2012-2015

  15. Research Plan – KEY IDEAS Research Plan 2012-2015

  16. La Trobe’s vision • Strive for research to be at or above world standard • Focus investment in research to lift defined areas to this standard, improve defined areas to ‘above’ or ‘well above’ world standard • At Unite (Intranet home page, click Unite & add sites/research/rpr/default.aspx ) from August 5 Research Plan 2012-2015

  17. Evaluation of the quality of research • ERA identifies research at or above world standard measured by peer-reviewed publications and national competitive grants • UARQ (University Analysis of Research Quality) – objective measure of ‘applied research’ to be trialed in 2011, RGSC to examine outcome of trial Research Plan 2012-2015

  18. Developing Staff • Aim for teaching-and-research staff to be able to develop to be established, productive researchers • Workload management, performance development promotions aligned to this • Competitive grant or publication profile considered Research Plan 2012-2015

  19. $5m redistribution budget 1. Additional to SRE funding 2. Max amt allocated to Faculties according to ERA scores 3. Faculties prepare bid for max amt to optimize high quality research, recover costs 4. If bid involves ordinarily budgeted research expenditure no savings be required 5. If bid involves new expenditure, savings equal to new expenditure be identified as part of bid 6. Bids form part of Faculty Operational Plans 7. Bids externally refereed

  20. Effect on expenditure budgets

  21. Block Grant Allocations • Agreed at Research Income & Expenditure Committee meeting Feb, 2011 • RIBG, JRE and RTS be distributed in the same way this year as the previous 3 years. • SRE Base (20% of SRE funding) be distributed as earned under the Federal Government formula, namely 20% of the indicative total. • SRE Threshold 1 and 2 be distributed according to weighted publications to areas of University strength (weights 1 for a publication in a specific discipline (4 digit FoR) rated 3, 2 for discipline rated 4 and 5 for discipline rated 5) in conformity with the commitment in the 2015 Strategic Plan, 80% of SRE be distributed to areas of strength.

  22. Thank You Research Plan 2012-2015

  23. Risk Management Carl Gibson Director Risk Management Unit

  24. 1000 billion US$ Financial crises Liquidity & credit crunch Asset price collapse Economic disparity Global imbalances & currency volatility Slowing Chinese economy Extreme commodity price volatility Fragile states Increasing predicted consequence Global risk Extreme consumer price volatility Abstracted from Global Risk Report 2011 – World Economic Forum Increasing likelihood Very likely

  25. Tertiary sector risk Regulatory reform Changing customer expectations Changing employer expectations Changing Government expectations Changing Council expectations Changing industry/technology Changing demographics Increasing international/domestic competitiveness on price Economic volatility Increasing international/domestic competitiveness on product Increasing consequence Foreign exchange volatility Increasing likelihood

  26. Predicted impact Catastrophic infrastructure loss Domestic income reduction Major Ineffective major project mgt International income reduction Unforseen expenditure Investment loss Major supplier collapse Moderate Strategy implementation costs Salary cost increase Major fraud New technology costs Minor Major litigation Unlikely Possible Likely Likelihood

  27. Domestic income reduction Deregulated domestic market Student attraction Student retention Product marketing Product quality Product – market alignment Flexible delivery Teaching capability Infrastructure & amenities Curriculum & course structure/content Competitiveness Institutional reputation Market understanding Capability & approach

  28. Thank You Research Plan 2012-2015

  29. University Operational Plan 2012-2014 David Ensor Vice-President (Operations) and Chief Operating Officer Budget Forum 19 August 2011

  30. Outline • Our Context • Vision 2015 Objectives and Characteristics • Planning, Review and Improvement Cycle and the planning framework • Principles underpinning Operational Plan 2012-2014 • The process so far • Current status and next steps

  31. Vision 2015 Four Key Objectives 1: Transform student lives through learning 2: Create new and useful knowledge 3: Support and reward staff excellence 4: Operate sustainably and ethically

  32. Vision 2015 Characteristics Open – to our communities, prospective students and new ideas Transformative – by making a positive difference to our students, staff, and communities, and to knowledge and practice Engaged – in knowledge creation and public discourse in local, regional, national and international contexts Accountable – to each other and our communities, improving what we do and how we do it Sustainable – ensuring that by our individual and collective actions we extend the capabilities and choices of future generations

  33. Planning, Review and Improvement Cycle • La Trobe is working to develop an integrated Planning, Review and Improvement Cycle • To live our values and achieve our Objectives: • Clear plans must guide our behaviour and prioritisation of resources • Objectives and targets must be clearly stated and well understood across La Trobe • Mechanisms to monitor and review performance on sound data and evidence are essential • Progress has been made; further strengthening of the Planning and Review Cycle is needed

  34. Current Planning Framework

  35. Priorities for Strengthening the Planning Framework • Recommence discussions of Vision 2025 and beyond • Development of a 10 year University Business Plan • outlining strategy for Teaching & Learning; Research & Research Training; • Internationalisation; Engagement; Budget and Revenue Sources (including • commercialisation, fundraising, divestment); Student Load; Capital and • Infrastructure; Workforce); Campuses and organisation (Governance, risk management etc) • Develop new Research and Research Training Plan (underway) • Develop an Environmental Sustainability Plan (underway) • Implement revised staff Performance Management System • Ensure consistency and alignment of Plans at all layers

  36. Principles Underpinning Operational Plan 2012-2014 • Activity planning (the Operational Plan) and resource planning (the budget) must be an iterative process • Priorities for action must be linked to Vision 2015 Objectives • The Operational Plan should include only priority initiatives (rather than also including ‘business as usual’ items) • Accountabilities, timelines and measures of success must be clear • Recently formed Budget Reference Group has played a role in quantifying the financial implications of the OP and identifying the sources of funding to be applied to each OP Priority

  37. Operational Plan: The process so far • May: Vice-Chancellor, Deputy Vice-Chancellors, Vice-Presidents, Pro Vice-Chancellors, Executive Deans, Heads of School and Directors invited to propose University priorities for 2012-2014 • May: Vice-Chancellor’s Advisory Group met to workshop the development of draft Operational Plan • June: Operational Plan Draft 2 presented to PRC; considered by BRG and circulated to senior management • June: Further feedback included into Draft 3; PRC considers CFO analysis and draft 3 of Plan • July: Operational Plan Draft 4 released to University to guide development of Faculty and Division Ops

  38. Operational Plan: Current Status and Next Steps • The CFO Analysis and draft Load Plan 2012-2014 raise serious questions about the ability to resource the Operational Plan as currently stands • A rapid, iterative process needs to occur now …. Vice-Chancellor’s Advisory Group to meet on 31 August to discuss possible re-framing of Operational Plan priorities and its financial consequence

  39. Thank You Research Plan 2012-2015

  40. Student Load Projections Professor John Rosenberg Senior Deputy Vice-Chancellor and Vice-President

  41. Outline • Role of Course and Load Planning Sub-committee • Load planning process • Headlines from the draft Load Plan 2012-2014

  42. Role of CALPS • Consider proposals for new courses, major course revisions and discontinuation of courses from a strategic viewpoint (academic merit is considered by Programs Committee). • Annually (March) conducts strategic reviews of all courses to ensure: • - existing courses continue to be attractive to potential students, are viable, contemporary, and regularly revised and refreshed; • - planning and consideration is being given to the introduction of new courses in both the short and long term; • - the overall suite of programs being offered by the University is meeting the needs and demands of potential students, government and industry; • - courses no longer viable are discontinued.

  43. Role of CALPS (cont) • 3. Co-ordinates the development of a University Load Plan for • recommendation to PRC. • 4. Provides input to and co-ordinate with the planning and budget • processes. • 5. Monitors the University’s performance against the Load Plan and • present regular reports to the PRC.

  44. Load Planning Process • The University’s Load Plan is developed by the Course and Load Planning Subcommittee of PRC (CALPS) in conjunction with Faculties • The Plan specifies commencing load targets in each semester and projected continuing load by course and funding type for the coming three year period; it is updated annually • The load targets and revenue estimates arising from the Load Plan serve as inputs into the annual budget process • Targets for the number of commencing students become the recruitment targets. The VTAC selection process and the work of Marketing and Engagement and La Trobe International are focused on achieving Load Plan targets

  45. Load Planning Process • March: Strategic Course Reviews occur. Course level data on trends in student demand, retention and student satisfaction inform discussions with each Faculty. Courses to be reviewed or discontinued are identified; proposals for new courses are discussed • June: Faculties provide proposed load targets for next 3 years in each course via load planning templates • July: CALPS holds meetings with each Faculty to discuss proposed load targets; adjustments made according to agreements reached with CALPS • August: Combined CALPS meeting with Faculties to recommend a first draft of the Load Plan • September: PRC considers CALPS proposed Load Plan

  46. Draft Load Plan: CSP and Fee-payment load by Fee Category for 2011 to 2014

  47. Draft Load Plan: Commencing and Continuing CSP and Fee-paying load by Fee Category for 2011 to 2014

  48. Draft Load Plan: CSP and Fee-paying load by Faculty for 2011 to 2014 • Figures exclude bridging course, domestic HDR, offshore and onshore partner load • FLM and FSTE are projected to have lower coursework EFTSL in 2012 than 2011, mostly due to decreases in continuing international load • FLM coursework load is projected to shift from 49% CSP and 48% international in 2011 to 54% CSP and 43% international in 2012

  49. Draft Load Plan: CSP and Fee-paying Revenue by Faculty for 2011 to 2014 • Figures exclude bridging course, domestic HDR, offshore and onshore partner load • All Faculties except FLM have increased revenue projected in 2012, due to: • tuition fee increases, • CSP indexation • abolition of the CSP cap (no more revenue foregone) • FLM has a large differential between CSP and fee-paying average prices: $11K CSP vs $21K Int. Fee in 2011 • FLM’s shift towards CSP and the price differential between categories sees the Faculty’s projected revenue fall, despite indexation of at least 2.5% in each category

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