Fall Update on the Budget, Financial Framework and Key University Initiatives

MASON MOMENTUM

SVP Carol Dillon Kissal | Provost S. David Wu | September 11, 2019

Welcome to Mason!

Anne Holton, Interim President

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Mason Nation

Access to Excellence

Thriving Together

Talent Ecosystem

Innovation Engine

Institutional Effectiveness

KEY UNIVERSITY INITIATIVES

Improve Processes – Student Experience RedesignExpand Access: ADVANCE PROGRAM

Compensation increases for Faculty & StaffBuilding for the Future – Core Campus

Improved Processes and Increased TransparencyPerformance Management Process

Arlington Innovation DistrictSecure external support for the Institute for a Sustainable Earth and the Institute for Digital Innovation

Launch multidisciplinary curricular innovationsMeet targets for the Tech Talent Investment Program

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Provide affordable access for all students

Grow enrollment and degree production

Expand online program enrollment

Create accessible pathways for diverse populations

Access to Excellence

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Community College Partnerships

Expand Online Programs

Build Virtual Campus

Access to Excellence Strategy

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GUIDED PATHWAYSTargeting high-demand disciplines

REDUCED TUITIONSaving students time & money

DEDICATED ADVISINGNOVA admission through

Mason graduation

NEW TRANSFER MODELSingle point of admission

WORKFORCE NEEDSEngaging K-12 and regional

businesses

Mason’s ADVANCE partnership with Northern Virginia Community College (NOVA) will also play a role in developing the talent pipeline, collaborating with Northern Virginia employers to adapt and create high-demand programs to fulfill critical workforce needs, much like Mason’s with Amazon.

ADVANCE A NOVA | Mason Partnership

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Student Success Strategies

Strengthen inquiry-based, experiential learning through Mason Impact

Increase academic success, enhanceretention and strengthen graduation rates through Student Experience Redesign

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Mason Impact

Undergraduate Research

CivicEngagement

Global Engagement

Entrepreneurship

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Great Lives, Great Careers

Robust, Scalable Student Care Network

Mason Impact

Inclusive, Thriving Communities

Student Experience Redesign

Enhancing the Mason Student Experience

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Fostering faculty excellence, scholarship and diversity• Increase full-time faculty lines to meet enrollment

needs and maximize research impact

• Increase faculty and staff compensation competitiveness

• Manage increasing competition for faculty talent with strategic retention resources

• Optimize organizational design and decision processes to support academic excellence

Thriving Together

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Innovation Engine

Sustain R1 research growth through strategic investments in faculty, research support, and infrastructure

Strengthen research impact via multidisciplinary institutes

Institute for Biohealth Innovation (IBI)Institute for a Sustainable Earth (ISE)Institute for Digital InnovAtion (IDIA)

Grow Tech Talent Degrees to meet the demands of our students, business community and the Commonwealth

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Recruit Faculty Innovators

Grow ResearchInfrastructure

Promote Translation& Commercialization

DevelopInnovation Workforce

3T Magnetic Resonance Imaging (MRI) System

Mason Institute for Biohealth Innovation

(IBI)

Mason Institute for a Sustainable Earth

(ISE)

Mason Institute for Digital Innovation

(IDIA)

Bioengineering Eminent Scholar Recruit

Innovation Engine

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Mason Tech Talent Initiative

GEORGE MASON UNIVERSITY

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200

400

600

800

1000

1200

1400

1600

1800

2000

2014 FallCensus

2015 FallCensus

2016 FallCensus

2017 FallCensus

2018 FallCensus

UVA ODU VT GMU

TTI Bachelors Enrollment (HC)BS, Computer Science +

BS, Computer Engineering

Create Innovation District at Virginia Square

Establish 1st School of Computing in Virginia

Scale Online Learning

SVP ADMINISTRATION & FINANCE

New Leadership

• VP Human Resources & Payroll

• VP Finance• AVP Strategic Planning

and Budgeting• AVP Business Services• Director of Strategic

Real Estate Initiatives• Special Assistant for IT• Operations Manager

Strategic Planning

Framework

• Financial Health -Exceeding Financial Targets

• New Planning & Budget Process

• Enterprise Technology Assessment

Transformation

• Alignment of Department Goals with University Goals

• Value Mapping

• Service Delivery Model

• New Practice: Business Process Improvement

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OPERATIONAL UPDATE

Access to Excellence

Thriving Together

Talent Ecosystem

Innovation Engine

Institutional Effectiveness

President’sGoals

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Arlington Innovation District

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CORE CAMPUS CONSTRUCTION PROGRESS IN 2019!

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Six-Year Capital Plan: 2020-2026PROPOSED PROJECTS FOR SUBMISSION TO DPB

FOR LEGISLATIVE CONSIDERATION

IDIA Institute for Digital Innovation Building & Garage (400,000 GSF) (PPEA)

GFNGFPPEATotal

$84M$84M$82M

$250M

Construct Academic VIII-STEM (200,000 GSF) GF $186M

Improve Telecom/Network Infrastructure – Phase IIGF

NGFTotal

$25M$20M$45M

Virtual Online Campus GF $11M

Renovate Planetary (S&T I) Hall (100,000 GSF) GF $75M

Renovate and Addition David King Hall(86,000 GSF, Reno: 60,000 GSF New) GF $94M

Renovate Fenwick Learning Commons Phase 2(90,000 GSF Reno; 35,000 GSF New) GF $57M

Central Plant Capacity Expansion GF $5M

Renovate Enterprise Hall (Reno: 100,000 GSF) GF $53M

PPEA Authority West Campus NA NA

PROPOSED PROJECTS FOR BOV APPROVAL ONLY UNDER HECONew Business School Building (200,000 GSF) NGF $165M

Activities Building (15,000 GSF) NGF $3.75M

PREVIOUS BOARD APPROVED PROJECTS UNDER HECO Renovations to Center for the Arts Concert Hall NGF $25M

FF&E DPB SUBMISSION FOR APPROVED PROJECTSRobinson Hall GF $11.32M

Telecom/Network Infrastructure – Phase I GF $1.25M

Total Six-Year Capital PlanGeneral Fund $602.57M

Non-general Fund $297.75M

PPEA $82M

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Our Six-Year Operating Plan Aligns with Goals of Virginia Plan

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Increase Student Financial Aid

Support In-state Enrollment

Growth

Support Salary Compensation

Increases

Support R-1 Research

Infrastructure

Mason Six-Year Operating Plan

Mason Priority

#1

Mason Priority

#3

Mason Priority

#2

Mason Priority

#4

Mason Six-Year Academic PlanMasonPriority

Mason StrategiesMason

FY 2021

General Fund

FY 2021

Mason FY 2022

General Fund

FY 2022

1 1. Provide Affordable Access for All Students $5.0M $5.0M $6.5M $6.5M

2 8. Support Salary Compensation Increases $8.5M $8.5M $8.9M $8.9M

3 2. Enrollment Growth & Degree Awards $10.0M $10.0M $12.0M $12.0M

4 11. Elevate Research -- $3.5M -- $3.5M

5 7. Support New Faculty Hires $5.0M $5.0M $6.25M $6.25M

6 9. Support Emergency Retention Funding $1.0M $1.0M $1.5M $1.5M

7 3. Student Success Initiatives $0.5M $0.5M $0.6M $0.6M

8 6. Accessible Pathways $0.6M $0.6M $0.6M $0.6M

9 4. New & Enhanced Programs $1.0M $1.0M $1.2M $1.2M

10 12. Research of Consequence -- $4.0M -- $4.0M

11 5. Online Degrees -- $0.5M -- $0.75M

12 10. Effectiveness & Efficiency $1.0M -- $1.0M --

Total $32.6M $39.6M $38.55M $45.8M

22Current year submission for Two-Year Biennium, FY 2021 – FY 2022

FINANCIAL OVERVIEW

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?Mason’s Financial Planning will Address Critical Questions

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OFFICE OF STRATEGIC BUDGETING AND PLANNING

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A renewed dedication to Transparency, Accountability & Responsiveness will transform how we engage with our university partners in support of the University’s strategic academic, research and outreach mission.

IMPLEMENT

MONITOR

REPORT

PLAN

~Strategic Objectives~

To support the University’s vision and mission that simultaneously sustains established priorities with a dynamic and nimble response to strategic opportunities;

To ensure that all systems, policies and practices align to optimize resources in support of university priorities.

~Core Values~

Operational Excellence

Integrated Planning & Budgeting

Financial Sustainability

Budget Focus Areas: The engagement identified five key focus areas related to the budget and planning process at George Mason that incorporate people, processes, and technology.

I. Organizational Structure

II. Inclusivity and Accountability

III. Reporting and Transparency

IntegratedBudget and

Planning Process

IV. Integrated Budget Process

V. Budget Tool -Requirements

Mason Recently Completed a Review of Budget Practices

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As George Mason initiates changes for integrated budgeting and planning, theimplementation roadmap will address each of the identified focus areas.

Financial Framework Provides The Bridge From Strategic Plan To Operating Budget

Strategic Plan-Based Key Initiatives

Entity/Unit Level/ Other Group Planning with

Specific Initiatives

High-level business planning with operating and

capital requirements

Existing operations

Resources available

Financial Plan

Str

ate

gic

Pla

n

Ad hoc Planning

High-level business planning, or quantification ofthe Strategic Plan through identified initiatives, isthe critical link to the Financial Plan

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Enterprise Risk Management incorporated into business planning and existing operations.

Operating targets establish performance levels necessary to achieve or maintain credit quality while generating cash for GMU’s strategies

These targets provide a framework for evaluating plan projections, options to resolve any cash flow gap, and related sensitivity analyses

*Medians for peers and Moody’s are based on FY18 audited financial statements.

New Financial Framework

RATIO Moody’s* MASON

Aa3 Aa2 FY 2018 Target

Operating Cash Flow Margin 10.3% 11.3% 17.5% 11.0%

Operating Margin 2.1% 3.3% 8.7% 3.0%

Debt Service to Operations 4.4% 4.0% 7.0% 4.2%

Spendable Cash & Invest / Operations 0.7 0.7 0.7 0.7

Average Annual Debt Service Coverage 2.7 2.9 2.4 2.8

Spendable Cash & Invest / Debt 1.4 1.3 0.9 1.3

Total Debt to Cash Flow 5.1 4.7 4.0 4.9

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SVP OPERATIONS

Human Resources &

Payroll

Information Technology

ServicesFacilities and

Campuses

Fiscal ServicesStrategic Planning & Budgeting

Business Services

University PoliceSafety,

Emergency & ERM

Strategic Real Estate

Capitol Connection

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Value Map& Benefits

Vision, Mission,

Principles: Creation &

Update• Understand the benefits your department provides to customers.

• Focus on Benefits not Attributes, i.e.: “Customer will gain THIS BENEFIT because of our ATTRIBUTES.”

• Measures, goals, priorities, and activities are aligned with priorities (at all levels) and desired results.• Success measures and related operational decisions and processes are driven by timely, accurate, and meaningful data.

Strategic Planning FrameworkOffice of the Senior Vice President

University Consulting / BPI

Priorities Goals Initiatives Review

Strategic Plan Evaluated

Periodically to Ensure Continued

Relevance To University,

Finance, and Customers

1 to 3-Year Strategies &

Priorities

1-3 Strategic Goalsfor Priority #1

1-3 Strategic Goalsfor Priority #2

1-3 Strategic Goalsfor Priority #3

Initiatives (1-3)related to each Goal

Initiatives (1-3)related to each Goal

Initiatives (1-3)related to each Goal

University GoalsAll Other Plans Must Align

Office of the Senior Vice President GoalsAll Plans Below Must Align

Process for developing Strategic Business Plans for each Department

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Value Mapping Process

Enterprise Technology Assessment

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• Overarching Vision for ITS

• Quality Management System

• Additional Resources

• Process Documentation and Automation

HUMAN RESOURCES REORGANIZATION

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“As the needs of the university continue to change and grow in complexity, I recognize it is imperative that HR & Payroll be equipped to provide a higher standard of service, be more responsive to customer needs, and operate with greater agility.”

Lester L. Arnold, Sr., SPHR-SCP, SPHRCHRO | Vice President for Human Resources and Payroll

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FINANCIAL DASHBOARD PILOT

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Enrollment Graduate and Undergrad by Fiscal YearUndergrad

DRAFT Working Model

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Budget

Budget vs. Actual Fiscal Year EndActual Budget Target

Colle…

4K

Space Planning and Facilities by Fiscal YearOrg 3 Colleg… Colleg… Colle… Colle… Colle… Interdi…

Volgenau School of Engi… Schar School of Policy a… College of Science

4K 4K 4KSchool of Business Interdisciplinary Progra… College of Humanities a…

4K 4K 4KSchool for Conflict Analy… College of Visual and Pe… College of Health and H…

4K 4K 4K

Pre-Award Grant and Research Activity by Fiscal Year

Fiscal # of # of PI # ofYear Proposals Sponsored/

Non–Sponsored

2018 6 3 722017 4 2 482019 4 2 482016 3 1 24Total 17 3 192

Page FilterOrg 3: All

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College of Education and H…

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College of Humanities and …

College of Science

College of Visual and Performing A…

Interdisciplinary Programs and C…

Schar School of Policy and Gover…

School for Conflict Analysis and Res…

School of Business

Volgenau School of Engineering

**vendor prototype using generic data**

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Students by Ethnic Background and 2023 Forecast

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2014 2015 2016 2017 2018 2019 2022 2020 2021 2023

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Two or More

DRAFT Working Model

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New Students by Fiscal Year and 2023 Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022

ENG 105 ENG 109 ENG 113 ENG 117 ENG 1

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Course SchedulesSchedule ENG101

M -W 1

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2015 2014 2016 2017 2018 2019 2022 2020 2021 2023

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18.2K

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15.6K

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17.7K18.6K

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Students by Ethnic Background and 2023 ForecastFemale Male

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Full-Time and Part-Time and 2023 ForecastFull-Time Part-Time

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College of Education and H…

College of Health and Human Servi…

College of Humanities and …

College of Science

College of Visual and Performing A…

Interdisciplinary Programs and C…

Schar School of Policy and Gover…

School for Conflict Analysis and Res…

School of Business

Volgenau School of Engineering

Org 3: All

**vendor prototype using generic data**

INCREASING EFFICIENCIES & EFFECTIVENESS

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University Business ConsultingA small management consulting-style team

serving the Mason Community

Partner with colleges, units and leadership

Business Practice Improvement (BPI)

Achieve goals

Drive new initiatives Thoughtful problem solving

THANK YOU!

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Q&A