September 2021 Budget Update
Greetings Colleagues,

I hope this message finds you well as we wrap up the 3rd week of fall term. I’d like to take this opportunity to provide updates on our financial outlook, budget model, F&A rate, and UBO organization.

Financial Outlook
We continue to make progress toward a balanced budget and long-term fiscal sustainability. Prior to factoring in federal COVID-relief funding, ISU’s FY2022 appropriated budget reflects an initial deficit of $5.6 million, driven primarily by continued undergraduate enrollment declines, implementation of two year’s changes in employee compensation (CEC), related fringe rate increases, and other inflationary factors. This marks significant improvement over the $11.3 million structural deficit going into FY2021, even in the face of unprecedented challenges posed by the COVID-19 pandemic. 

Grant funds will ameliorate the deficit for FY2022 while we continue to work toward long-term balancing and development of a new budget model.
The FY2022 Budget Book is now available online on the budget website.

Budget Model
Our Budget Model Advisory Group is continuing the multi-year project of developing a new budget model for ISU. This fall, the advisory group will be developing recommendations for fund balance and carry-forward policies, salary savings, administrative recovery, and strategic investments. These recommendations will be shared with the campus community for comment and feedback, then vetted and reviewed by Leadership Council and Administrative Council. The comprehensive budget model is scheduled to be completed in time for FY2024 implementation.

F&A
We have completed the first step of our F&A Rate project charter by submitting a proposal for new federal F&A rates. We expect a response in the summer of 2022. In the meantime, the Office of Research is developing options and recommendations for internal F&A allocation. Hypothetical allocation scenarios will be presented in upcoming Town Halls. Initial recommendations will be presented to Leadership Council later this fall, followed by robust impact analysis with colleges and support units. Final recommendations will be developed before the end of the fiscal year.

UBO Organization
Since centralizing the UBO organization under the Budget, Planning, and Analysis umbrella in July 2020, we have implemented a new financial reporting and budgeting system and implemented several process improvements. These have enabled us to review and realign our UBO portfolios and staffing structures as reflected in the updated UBO organizational chart

We continue to welcome your questions, feedback, and ideas through our online feedback form or by emailing us directly at budget@isu.edu.

Best Regards,

Jen


Jennifer Steele
Chief Fiscal Officer
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