Handbook
For Medical School Accountants
DEAN’S REVENUEALLOCATION
Last Date Reviewed: 112/101/17
Background
Everyach year around May, the Dean’s Office of the Medical School distributesfundsto the departments that werwere allocated to the Medical School from the University Budget Office to departments via the budget system.. These funds include Operations & Maintenance (O&M), Indirect Cost Recovery (ICR), andother State Special Funding (e.g. Tobacco, MnCare).
Historically,allocations were based on a variety of commitments that had been made between the Dean and the department chair. The Dean’s allocation was created to help better define how the Medical School should allocate itsresources. A committee of faculty and staffworked on a methodology to distribute the funding from Central based on annual efforts towards the Medical School’s mission.
The components of the Dean’s Allocation are asfollows:
- Medical Student Teaching & Advising(D,E)**
- Currently, 34.9% of Medical Student tuition is returned to the departments via the Dean’s Allocation.
- The Office of Medical Education (OME)determines the value of each component of Medical Student education (teaching, course direction, advising)and then works with departments to determine who will fill these roles.
- Spreadsheets are sent to the Dean’s Office Finance area to input amounts into the allocation model once that process is complete.
- Typically, some funds will be held back for Critical Theme projects. Awarding these dollars results in post – budget transfers.
- Tuitionfor Medical School courses taught to undergrads and other professional students in academic plans outside of the Medical School(F)
- Departments receive 80% of the tuition.
- Graduate Programs(G)
oDepartments receive 80% of tuition revenue generated by students enrolled in their graduate programs. .Traditionally, this is done in the basic science departments because the department pays the tuition of their graduate students.
- Research(H)
Basic Science
- Basic Science departments receive a research unit for every faculty FTE (including part-time appointments). Typically, a research unit isworth $55k.
- Basic science departments submit their list of faculty to the Dean’s Office Finance area. This listmay then be adjusted depending on other commitments. For example, a department will not receive a research unit for a faculty member who is totally supported by the Dean’s office or another University entity.
Clinical Science
- The Dean’s Office calculates each Clinical Science department’s three year average of full-time (67% FTE and above) facultysalaries supported by sponsored funds and uses it to determine the departmental percentageof all Medical School Clinical Science departments.
- The departmental percentage is multiplied by the total number of research units given to Clinical departments (typically approximates 175), which is then multiplied by $55K (the amount of a research unit). The total is the department’s allocation for research.
- Department head support (I)
- The Dean determines Department Head Support
- Provost Support and MNCare(J)
- If there are special dollars from the state or University for a specific program, the funds will go directly to that department. For example,MNCare funds are determined by a committee—they are not part of the general state appropriation funds.
- Admin and Cost Pools(K)
- This is aformulaic component that gives dollars to help pay for administration and some of the budget model cost pools (see Budget Model SOP).
- This allocation is based on weighting the actual allocations for education and research.The formula weighs education dollars(columns D, E, F,G)at 1 and the research dollars(column H)at 10. A department’s weighted total is divided by the Medical School’sweighted total to determine what percentage of the Admin and Cost Pool funding each department will receive.
Example: A Department has 1m in education funding and 100k in research funding. The formula would be(1m*1 +100k*10)= 2m.
The school total given for education funding is 20m and school total given for research is 6m. The formula would be (20m*1 +6m*10) = 80m. The percentage given to the department would 2.5% of the Admin and Cost Pools total.
- Graduate student stipends(L)
- Funds are given to the basic science departments to help with the cost of the 1styear graduate students.
- Funds are allocated based on the recommendation of the BSGC (Basic Sciences Graduate Programs Council).
- Family Medicine receives an allocation in this category because it is the carryover of a state special dedicated to support their residency programs
- Phase-in and Discretionary funds of the Dean(M,S)
- The Dean allocated additional funds to the BSGC to distribute to Basic Science departments. This allocation is included here and is distributed based on headcount.
- GCD (Genetics, Cell Biology & Development) and BMBB (Biochemistry, Molecular Biology & Biophysics) are joint departments within CBC (College of Biological Sciences). They receive additional funding in lieu of tuition for courses they teach in CBS (which is not returned to them).
- Any other discretionary funding decisions made by the Dean will be represented in this column.
Usually, the Dean’s Allocation is not completed in time to be implemented via the EFS Budget Entry system. In that case, Departments budget their final allocation from the previous fiscal year into EFS. Once all the funding decisions have been made and the allocation model is final, the Dean’s Office will increase or decrease the amount of funding for each department to reconcile to the new allocation.
** Letters in ( ) are cross references to the supplemental report.