Funds Management Strategies

OVERVIEW

The FMP Committee will study individual fund types and historical expenditure data to understand the key factors that contribute to the accumulation of fund balances, i.e., policies, restrictions, commitments, risk tolerance, future planning, etc. FMP committee members and, in some cases, non-members will form subgroups to assess fund management ideas and develop strategies for consideration. Subgroups will solicit assistance from others where these resources will be advantageous to the project. As fund management strategies are drafted, they will be posted on this page as part of the vetting and feedback process. Input on these proposed strategies will be invited via the process outlined on the Feedback and Input page.

CURRENT SUBGROUP TOPICS

Scholarships

This subgroup will review scholarship accounts with cash balances to develop an understanding of the reasons that have contributed to the balances, as well as the commitments, unit plans and timelines for the use of these funds. Based on these findings, the subgroup will work to develop strategies to effectively manage these resources for the benefit of unit and central student aid efforts.

Subgroup Membership: Frank Dooley (Lead), Joel Ebarb, Keith Kluender, Cherise Hall, Kristi Hartwick, Ted Malone, Ellen Barbour

Fellowships

The funding sources, balances and processes for awarding fellowships will be studied for both Graduate School centrally managed fellowships and unit supported fellowships. With this understanding, the subgroups will refine or redesign processes and cash management strategies that will promote full allocation of fellowship funds in a timeframe that awards fellowships to the units’ highest quality student applications.

Subgroup Membership: Rukhsana Malik (Lead), Cyndi Lynch, Heather Oakley, Tim Riley, Cheryl Cornell, Suzanne Payne, Jerry Shively, Heather Toro

Professorships

This subgroup will review the overall fund balances in professorship accounts, both filled and unfilled, to gain an understanding of the level of cash that has accumulated. Effort will be focused on understanding the rationales for accumulating these balances. Management strategies will then be developed that will provide options to maximize the use of cash in excess of current needs while maintaining access to cash planned for future needs, including discretionary funds.

Subgroup Membership: Elizabeth Topp (Lead), Laurel Weldon, Andrew Bean, Anil Bajaj

Faculty Discretionary Funds

Faculty discretionary funds are made up of a variety of resources including research incentive funds, salary savings from grant support, royalties, etc. that are allocated to an individual professor as a result of his/her specific professorial activities, i.e., research, grant awards, publications, awards. This review will exclude balances associated with Professorships which is separately addressed. The subgroup will review the significance of these balances, how they have accumulated, and the planned uses including those planned for future use.

Subgroup Membership: Jay Akridge (Co-Lead), Laurel Weldon (Co-Lead), Jeff Bolin, Kirke Willing

Central Bank Concept

This subgroup will investigate the options for managing some portion of unit cash at the Provost’s level using a central bank. A central bank would allow units holding cash for future year commitments to “deposit” these funds with the assurance that they can be “withdrawn” when needed. Units needing to smooth fluctuations in fund sources or to make strategic investments could “borrow” against these deposits. The subgroup will develop the operational processes for launching and managing a central bank.

Subgroup Membership: Abhi Deshmukh (Lead), David Hummels, Jason Dietz

Faculty Start-up

Significant funds are committed to faculty start-up packages that extend for multiple years. The subgroup will investigate the sources of these funds and how these resources are managed to meet start-up commitments over time. This information will provide a framework to develop strategies that provide timely access to start-up funds to faculty while productively managing multi-year commitments.

Subgroup Membership: Keith Kluender (Lead), Jay Akridge, Jeff Bolin, Tammy Emilson, Mona Holdcraft

Appropriated Funds (AG, HHS, VET)

These funds are primarily in the College of Agriculture with some balances in HHS and Veterinary Medicine and are restricted in purpose and use. This subgroup will document the restrictions and other reasons for cash balances and determine if additional strategies can be implemented for the management of these balances over time.

Subgroup Membership: Connie Lapinskas (Lead), Jason Henderson, Cherise Hall, Angela Abbott, Deb Cessna

Income Producing Funds

Income producing funds include a variety of activities and span across all colleges. The other significant source of balances is a combination of Digital Education and Purdue Extended Campus. This subgroup will study the various unique components and assess for each the reasons for balances and the opportunities to manage these in more advantages ways.

Subgroup Membership: Jon Harbor (Co-Lead), Jason Dietz (Co-Lead)

Gift Funds

Gift funds and subsequent balances exist in almost every unit reporting to the Provost. While gift funds include expenses for faculty start-up and professorships, this subgroup will address all other gift funds. The variety of purpose will be reviewed with a focus on major components. An assessment of the management of these resources will be used to determine new or enhanced strategies to assure gift funds are expended in timely order rather than accumulating.

Subgroup Membership: Tammy Emilson (Lead), Connie Lapinskas, Jason Dietz, Theresa Weilbaker

Provost Reserve Funds

An analysis of the reserve funds held centrally by the Provost will be studied. This will include the review of methodologies for funding initiatives and commitments, strategies for managing cash balances, and the approaches to single and multi-year funding plans. An assessment of these various strategies will determine where changes can be effective in the overall support of the units reporting to the Provost.

Subgroup Membership: Connie Lapinskas (Lead), Kristi Hartwick, Suzie Robinson

Student Life

Student Life funds are primarily composed of University Residences and Food Service Operations. These are auxiliary operations and include residence halls, food services, recreational gym, convocations, the student hospital. Unlike most other units, major expenses impacting fund balances and facilities and R&R costs. The subgroup will study this financial structure to determine if current cash management strategies can be modified to more cost effectively finance the operation.

Subgroup Membership: Frank Dooley (Co-Lead), Connie Lapinskas (Co-lead), Beth McCuskey, Barb Frazee, Doug Smith

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