FAQs - Budget Planning and Forecasting
What is the Budget Planning and Forecasting project?
Rutgers University recently adopted a Responsibility Center Management (RCM) budgeting methodology to increase transparency, ownership, and accountability of financial resources across all schools, departments, and units. RCM enables units that generate revenue for the University and those that provide services to revenue-generating units to prioritize decision-making based on controlled resources and long-term, strategic planning.
To support the new budgeting, planning, and forecasting approach, the University is implementing a phased rollout of the redesigned Hyperion planning and forecasting application. This tool provides a universitywide application to analyze and report on more detailed budget and forecasting data.
Why is this change occurring?
The new budgeting, planning, and forecasting approach will enable the University to develop a single, integrated platform that will provide advanced analytic reporting capabilities and deliver a comprehensive, driver-based forecasting and budgeting system utilizing the new chart of accounts.
When will all Rutgers employees begin to work in the Responsibility Center Management model and use the Hyperion tool?
The University began to utilize the Responsibility Center Management budgeting model in Fiscal Year 2016. In October 2015, the costs centers began using the Hyperion planning tool to budget for Fiscal Year 2017. In March 2016, the responsibility centers began using the Hyperion planning tool to budget for Fiscal Year 2017.
An additional Hyperion application, Forecasting, was rolled out in January 2016.
Brief tutorial videos on topics such as how to use the Hyperion tool to budget different fund sources and how to run reports can be found on the Office of Budget and Resource Studies YouTube channel.
What budgeting model did the University use before transitioning to the RCM model?
In 2005, All Funds Budgeting (AFB) was instituted at Rutgers. AFB is a modified version of RCM where flat overhead on tuition and finance and administration is used to support the local/regional administration, and universitywide administration costs are not directly budgeted to the schools.