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Vice President for Finance

Financial Flexibility for the Future

For the past several fiscal years, OOF has been involved in promoting and implementing “rebalancing,” which allowed DLCs a greater distribution from endowment while simultaneously relieving the GIB of financial pressures. Following on this Institution- wide success, Vice President Ruiz and the executive vice president and treasurer, Terry Stone, asked OOF to analyze and project the effects of the rebalancing initiative alongside other financial efforts as a means for understanding MIT’s financial operations and the outlook for financial flexibility. Largely as a result of the increased endowment distribution voted in fiscal year 2008 and again in fiscal 2009, we were pleased to project a balanced budget in FY2009 and the foreseeable future. In addition, there will be small surpluses for funding future initiatives. This is a major improvement for the Institute as it helps ensure short-term financial well-being as well as long-term growth and strength.

Debt Strategy

OOF launched a considerable effort to analyze, document, and recommend improvements to the Institute’s integrated debt management and capital structure framework. Working directly with Vice President Ruiz, OOF explored an active approach to debt management and recommended the optimal capital structure for MIT. This included a detailed study of the municipal bond markets, the credit rating process, and the concepts of debt capacity and debt affordability during a period of considerable market tumult and concerns about budget volatility.

Integration with VPF Organization

A key driver of effectiveness for OOF has been our successful integration with the offices formerly under the controller: the CAO, A/R, Payroll, Purchasing, and Travel, etc. Through both formal and informal efforts, such as cross-functional analysis teams and a holiday baking competition, OOF has been working continuously toward the goal of building strategic relationships and improving trust and cooperation within the VPF organization.

Fiscal 2009 Priorities

The Office of Budget, Finance & Treasury adheres to the following, fundamental priorities:

  • Building a solid and cost-effective infrastructure to deliver an unprecedented level of analysis and decision-making support

  • Developing financial strategies that will help increase MIT’s financial flexibility and overall financial health

Maintaining a high standard of excellence by providing outstanding fact-based analytical support for decisionmaking processes while adding value to these processes by enhancing understanding of the important issues

Supporting the president’s, provost’s, and executive vice president’s stated mission objectives through increased connectivity within the MIT community

Cultivating and expanding established relationships in the MIT community, including possible pilot programs with DLCs to improve the budget process

MIT Reports to the President 2007–2008

21–11

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