LEXINGTON, Ky. (Dec. 6, 2013) — In a commitment to keep the University of Kentucky community informed and engaged in the process of transitioning to a new financial model, UK Provost Christine Riordan and Executive Vice President for Financial Affairs Eric Monday issued the latest newsletter with updates on the financial model.
The e-newsletter was distributed Thursday, Dec. 5. Following is the full message:
As we continue our conversations with groups across campus about the values-based financial model, we are sensitive to the questions and concerns being raised. So, over the next few weeks, in addition to updating our financial model website's frequently asked questions (http://www.uky.edu/Provost/FinancialModel/), we wanted to take the opportunity to delve more deeply into some of the fundamental aspects of the model.
The goal of the new financial model is to create a more consistent and transparent flow of resources throughout the university. To do that, the values-based financial model is an "all-funds" model. Every aspect of our university's budget -- about $2.7 billion -- will be included.
There are several sources of revenue that help fund our operations:
- State appropriations from the Commonwealth
- Tuition dollars assessed to our students
- Grants and contracts and the associated Facilities and Administrative Costs
- Endowment income
- Sales and service
- Clinical revenue
To reflect revenue generation and the all-encompassing nature of the model, every unit has been classified as either a:
- Revenue Generating Unit (RGUs such as colleges and centers);
- Support and Resource Unit (SRUs such as enrollment management, human resources and libraries); or
- Primary auxiliary or self-supporting unit that already lives within the resources generated (such as UK HealthCare, UK Athletics, housing, dining or parking)
In upcoming newsletters, we will describe how we propose each source of revenue would be treated in the financial model with the goal of maximizing their use on behalf of our missions of education, research, service and healthcare at the University of Kentucky.
How we use the model to accomplish that goal is what we will discuss more fully in the coming weeks and months. In the meantime, thank you for your continued interest in this process and your thoughtful questions and comments.
MEDIA CONTACT: Sarah Geegan, (859) 257-5365; firstname.lastname@example.org