Vice President for Finance
conducted to find a director for the office. A new director, Allen Marcum, was hired in June 2008. For the purposes of this year’s annual report, we will report on the activities of each office individually while reporting on the FY2009 priorities collectively.
The Office of Budget Operations (OBO) continued to support the MIT community by compiling the Institute’s annual operating budget, which will total $2.4 billion in fiscal 2009. OBO manages the yearly budget cycle, including the production of the Budget Book and the end-of-year Report of Financial Results.
Members of OBO maintained their excellent support of DLCs in fiscal 2008. Despite the vacancy of one budget officer position since February 2008, and the increased responsibilities resulting from the retirement of Peg Warner, the office was able to accomplish numerous goals over the past year.
OBO members participated in several VPF teams set up to improve processes and services provided by our organization. These projects included the Software Project Review team, the Training Alignment team, and various VPF “quick win” teams. One member of OBO, Lody Petriv, also participated in a newly developed PDI in the VPF area. We also offered several training opportunities to the MIT community including courses on budgeting fundamentals, budget submission, and the closing process, as well as Brio training.
OBO helped lead a project to centralize and document many of MIT’s financial processes, policies, and procedures. This project was in response to our annual PwC audit letter recommending the development of a major accounting processes inventory to identify opportunities to improve the quality of financial information and decision support through better coordination and systemic integration. By codifying these policies and procedures, OBO believes it has ensured consistency, improved internal controls, and increased transparency. The overall project was coordinated by one member of the office and every member helped define and document at least one accounting process. The individual projects included software accounting, the reconciliation of co-mingled endowments, and a more effective gift reconciliation process.
Telephone and Networking Pricing and Budget Allocation
OBO worked collaboratively with members of IS&T and nearly every DLC across the Institute to help implement the first year of a new telephone and network pricing methodology. This was the culmination of a three-year process that started with the formation of a Pricing Steering Committee and included consultations with the Assistant Deans’ Group and other various MIT committees, including AIM and Academic Advisory Council II (AACII). Because today’s technology and industry standards made prior years’ billing methods obsolete, this change was essential for transparent billing practices. OBO then reallocated general funds that cover the costs of telephone and network services among the DLCs as necessary. This project resulted in a cost allocation method that is more sustainable in the long term.
MIT Reports to the President 2007–2008