Strategic Budgeting

This is historical data. See current data on NMHU here.

Task: As stated in the HLC action letter, Highlands must provide evidence that the institution has ameliorated the findings of non-compliance identified in this action that resulted in the imposition of Probation, Core Component:

1. University accomplishments, plans and results in increasing and stabilizing its CFI, primary reserve ratio, and University reserves;
2. use of new institutional capital planning strategies demonstrating progress to keep projects on time, within scope and on budget; and
3. mission-driven, integrated and transparent strategic planning and budgeting decisions;

More information was provided in the HLC action letter:

The University is out of compliance with Criterion Five, Core Component 5.A, “the institution’s resource base supports its current educational programs and its plans for maintaining and strengthening their quality in the future,” for the following reasons:

• The University has not demonstrated that it has the financial resources to support its programs and its plans for maintaining and strengthening their quality, nor has it demonstrated appropriate financial practices in this regard, because:
  • the University’s history is marked by recurrent and unresolved fiscal concerns including revenue declines, an unstable CFI score, little evidence of sustained planning activities, and a 15-year history of financial concerns, as expressed in the 2000 Comprehensive Report leading to a 2004 Focused Visit, a 2009 Monitoring Report, and 2013 Financial Indicators Report, which indicate the University’s challenge in meeting this requirement;
• The University has not demonstrated evidence of a completed integrated planning process, any accomplishments attained for Strategic Plan-HU Vision 2020, or sustained processes for strategic plan implementation or established budget procedures; and
• While the University in its August 2016 response described positive cash flow as well as the likelihood of additional cuts from the state, there appeared to be no new financial resources since the Commission’s recent evaluation to assure improved financial support for educational operations now and in the future.

Resolution: Highlands needs to accomplish things to resolve Probation Area:

1. Provide evidence of accomplishments, plans, and results in increasing and stabilizing our CFI, primary reserve ratio, and University reserves.
2. Provide evidence of our new institutional capital planning strategies, including our success in completing the Trolley Barn on time and under budget.
3. Create a mission-driven, integrated, and transparent strategic planning process (see Probation Area 5.C) and budget process.
4. Show evidence of integrated and transparent budgeting decisions.

Note: The evidence of the integrated and transparent strategic planning is present in Probation Action Plan 5.C.

Background: As noted by the HLC, Highlands has had 15-year history of financial concerns. The core of this probation area, along with Probation Area 5.C, ties to our lack of sustained evidence of budgeting to strategic planning, and then transparently presenting those budget decisions to the university community.