TO: Vice Presidents and Deans

FROM: E. Gordon Gee

DATE: October 18, 2007

RE: Fiscal Organization

In my October 4 speech to the faculty, I spoke about moving Ohio State further, faster along the road to national leadership and distinction. Achieving that goal requires us to now be centrally driven, while continuing to be decentralized in our implementation.

One area where that is particularly important is the deployment of our financial resources. I have asked Bill Shkurti, senior vice president for business and finance and chief financial officer, working in collaboration with Executive Vice President and Provost Joe Alutto and Interim Senior Vice President for Health Sciences Chip Souba, to strengthen the direct role of the chief financial officer in overseeing the allocation and utilization of resources within the decentralized operations.

This change will build on current practices and processes, in most cases, but will also require some operational changes. One of those changes is a redefinition of the relationship between the University's chief financial officer (CFO) and the senior fiscal officers in the colleges and support units. Effective November 1, I am adding a dotted line reporting relationship from the senior fiscal officer in each college and support unit to the chief financial officer. The existing direct reporting line to the dean or vice president will remain in place. This means:

 Senior fiscal officers will be expected to communicate directly with the chief financial officer and his staff on issues of relevance, and he with them.  Deans and vice presidents will consult with the CFO regarding hiring, performance evaluations, merit pay increases, and promotions for all SFO's.  A process for SFO submission of annual financial reports, quarterly for selected areas, will be developed and implemented by June 30, 2008. This will be done in such a way as to minimize duplication with existing financial reporting mechanisms.  A senior fiscal officers' steering committee will be created to provide advice and guidance on strategic financial issues. Membership will be limited and by invitation only.  No financial matter will be placed on the Board of Trustees agenda without review by the Office of Business and Finance. This includes affiliated entities.

The CFO will continue to work closely with the provost and the senior vice president for health sciences to make sure financial decisions are in alignment with academic goals and will continue to consult with the President's Cabinet, Council of Deans, and Senate Fiscal Committee on financial matters. I have asked Bill, Joe Alutto, and Chip Souba to form an Integrated Financial Planning (IFP) group to work on budget planning and financial integration. Joe will chair the group. As needed, others will be asked to consult with the IFP. This does not mean that the chief financial officer will become directly involved in the day to day transactions of the decentralized areas. It may, however, result in a requirement for greater consistency in the processes utilized across the University.

More details will be forthcoming from Bill's office in the weeks ahead. I look forward to your support and the support of your senior fiscal officers to make this transition successful.

c: Dr. Joseph A. Alutto Mr. William J. Shkurti Wiley W. Souba Jr. M.D., Sc.D. Senate Fiscal Committee Senior Fiscal Officers