Long Range Financial Planning: KPIs in Capital and Operational Budgets

Jeremy Bass - PFM Financial Advisory LLC
Matthew Kogut - University of New England

This session will discuss approaches toward long range financial planning and development of financial policies including establishment of Key Performance Indicators (KPIs) to ensure strong financial management in assembling capital and operating budgets. To remain competitive in this environment, the capital and operating decisions that an institution makes are crucial. Establishing KPIs that are focused with the appropriate buy-in from management and board are important so that as strategic decisions are made there is financial accountability. This panel will discuss the current market environment where institutions are facing inflationary challenges, demographic changes, increases in interest rates, and growing capital needs. Further this panel will provide an updated case study of the University of New England who used long-range planning to strategically grow its balance sheet through disciplined operations. The University recently accessed the market for a relocation of its medical school campus leveraging gifts and the capital markets. Most recently the University received an upgrade in its credit rating from Moody’s.

Learning Objectives

1. Understand current operating environment.
2. Understand current capital markets and credit markets.
3. Develop appropriate KPIs for operational and capital budgets.
4. Explore alternatives for capital financing including debt, cash, and philanthropy.
5. Manage credit ratings.

CPE Available

• 1 Credit: Finance