Budget & Planning

Yale School of Medicine Departments are required to participate in the budgeting and monitoring process using FMT (Financial Management Tool). The annual budget process begins in late fall, with the Dean’s Office calculating the amount of general funds each department will receive for the next budget year (GA Allocation). At about the same time the University sets faculty and staff increases, the Yale College term bill increase, and the endowment income distributions are distributed. The Dean’s Office also announces assessment rates and fringe benefit rates by the end of December. Budgetary guidelines are issued in December by the Budget Director to departmental administrators. These guidelines include expected endowment income, faculty and staff increase guidelines, fringe rates and all assessment rates. By the first week in February, departments submit budgets to the Budget Director. The budget submitted by departments includes projections for all income sources, associated expenses and transfers in or out of the departments at a detail level. Departments projecting a deficit are required to submit detailed information supporting that deficit and a plan for bringing that deficit into balance.

The School’s Budget Director reviews the income and expense projections submitted by the departments, confirms dowry commitments, and if a department is projecting a deficit, provides supporting material for the Dean’s Office as part of the review process. Meetings are held with departments as necessary to review the data and to discuss plans for balancing projected deficits. Summarized budgets are then reviewed by the Dean’s Office and, when finalized, submitted to the Provost and University’s Budget Office for review and consolidation. The Yale Corporation usually meets in early April to review and approve the budget.

Once the budget is approved, this budget becomes the MP0 budget and is then used to monitor the department’s financial progress during the fiscal year. On a quarterly basis, departments are required to report a projection of year-end revenues and expenses in detail to the Dean’s Office. This quarterly monitoring process requires departments to review their accounts and make detailed projections of their revenue, expenses and transfers. The monitoring process should be completed in the first two weeks following the close of each quarter and then submitted to the Budget Director. The departmental quarterly monitoring reports follow the same review process as the budgets.

Monitoring and Budget Schedule

• 1st QTR Monitoring
  Mid October: Most departments are not required to submit a projection for this period. The YSM Budget Director will notify each department that is required to do so. This is usually a high level projection.
• 2nd QTR Monitoring
  December to Mid January: This data is used to develop the next fiscal years budget.
  Early February: Annual Budget for the next fiscal year
• 3rd QTR Monitoring - Mid April

Yale School of Medicine Financial Planning Process

University-wide 10 year planning model is developed by each school during the summer and early fall by all funding sources using both common growth parameters provided by the University and individualized parameters based on the needs of each school. Sub-models are also developed by the University for benefits, endowment spending, I&A, utilities and assessments. Model base is the most recent MP0 budget. These models get summarized and presented to the Yale Corporation in December.