The Institutional Financial Planning and Analysis Department was recently established in U-M’s Finance Division to offer a more global and cohesive approach to financial forecasting across U-M and serve as a central resource for unit-level financial planning.
Beyond offering forecasting services, IFP&A also supports U-M’s capital planning process and offers other financial services to the U-M community, including analytics and dashboard development.
“Our focus is two-fold — first, to provide leadership with enterprise-wide financial data as it works to align the university’s budget and financial statements with its long-term goals, enhance its overall financial health, and support U-M’s strategic opportunities,” said Keaten North, director of the IFP&A Department.
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“And second, to collaborate with — and be a resource for — units as they work to build out their own mid- and long-term financial plans. U-M’s annual operational revenues total more than $14 billion, and we’re here to support informed decision making through data-driven scenario planning, reliable financial analysis and robust forecasting.”
North added that the IFP&A Department will also enhance U-M’s ability to proactively optimize resource allocation and manage financial risks associated with capital projects and operational growth by evaluating trends, modeling financial impacts and providing advice to units. The department’s innovative financial models and tools will assist U-M leadership in maximizing long-term financial opportunities and ensuring alignment with unit-level programmatic needs while promoting financial stability and affordability.
“An integral component of effective financial management is the ability to plan and forecast with precision, which allows the university to allocate resources strategically, assess risks and support long-term goals,” North said. “And that’s particularly important against the backdrop of the current federal activity and its potential impact on U-M.”
The IFP&A team, which includes eight financial experts, has held a number of unit-level workshops to promote its financial practices across U-M. These workshops provided, among other things, a perspective on IFP&A’s approach to managing financial data and forecasting, information on best practices and a variety of resources that units can use to adopt a similar approach.
“We’ve also developed several UM-wide and unit-specific financial models that incorporate macroeconomic factors and university-specific data. These models ensure that the university is well-positioned to manage financial risks and capitalize on new project opportunities that align with Vision 2034,” North said.
Another core function of the IFP&A Department is to monitor and forecast the many factors that may impact the top credit ratings that U-M has received for a number of years from S&P Global and Moody’s, two leading rating agencies that assess financial health and credit risk.
This information enables university leaders to capitalize on areas of strength and proactively manage potential concerns to protect the institution’s credit ratings. U-M is one of only seven public universities in the country to earn the highest possible credit ratings from S&P Global and Moody’s.
The university’s FY 2024 Annual Report includes more information about U-M’s financial strength and why it has consistently received such high ratings from S&P Global and Moody’s.
The IFP&A Department also played a crucial role in establishing U-M’s Capital Council, which advances the university’s mission, vision and values by streamlining the strategic planning and management of capital investments in its physical footprint. The university is investing billions of dollars in a variety of capital projects over the next five years, and IFP&A will ensure that these resources are appropriately allocated for new projects, facility maintenance and ongoing operations.
Contact the IFP&A Department to request more information or submit questions.
