Why university finance is hard to run today
1. The forecast lives in spreadsheets
Revenue, payroll, and spending sit in different systems, so the forecast is rebuilt by hand every month.
2. Enrollment and aid reach revenue months late
Deposits, melt, and discounting move net tuition all summer. Finance sees it at the fall close.
3. The close takes weeks, so cash and ratios are checked late
Days cash on hand, receivables, and covenant ratios are calculated after the month ends, when the options are fewer.
Decisions wait on the close
2 · The ontology we build
The finance model
We bring your systems, outside data, and policies together, model the domain, and compute what it runs on.
A slice of the full model: the labeled objects are the ones this work runs on most.
Department
A unit with a budget and an owner who answers for it.
- division
- enum
- budget_owner
- string
- funded byBudget linemany
Budget line
One line of a department's budget for the fiscal year.
- fiscal_year
- string
- budget
- money
- year_end_variance
- Where each budget line will land at year-end. From expense line, department, and commitments and open orders.
- fundsDepartmentone
- budgetsLedger accountone
Ledger account
An account in the general ledger, the record every forecast reconciles to.
- account
- string
- type
- enum
- net_asset_class
- enum
- is budgeted onBudget linemany
- is closed inFiscal periodmany
- recordsExpense linemany
- recordsRevenue streammany
Fiscal period
A month or quarter of the fiscal year, open until it closes.
- starts_on
- date
- status
- enum
- Æ’operating_margin
(revenue − expense) ÷ revenue
- closesLedger accountmany
- testsDebt covenantmany
Debt covenant
A ratio a lender requires, with its threshold and the date it is tested.
- ratio
- enum
- threshold
- decimal
- next_test
- date
- Æ’covenant_headroom
forecast ratio at next_test − threshold
- tested atFiscal periodmany
Expense line
A category of spending, from payroll and benefits to services and utilities.
- kind
- enum
- to_date
- money
- Æ’run_rate
to_date ÷ days elapsed × days in year
- posts toLedger accountone
- comes due asPayablemany
Revenue stream
A source of revenue: tuition net of aid, housing, and dining, grants, gifts, and the endowment draw.
- kind
- enum
- to_date
- money
- revenue_forecast
- Revenue by stream through year-end, with net tuition built from enrollment and aid. From scenario.
- posts toLedger accountone
- billed asReceivablemany
- is changed byScenariomany
Payable
An amount the institution owes, with the date it comes due.
- payee_type
- enum
- amount
- money
- due_on
- date
- is owed forExpense lineone
- paid fromCash positionone
Cash position
Cash and short-term investments by account, as of today.
- account
- string
- balance
- money
- as_of
- date
- cash_forecast
- Daily cash for the next 13 weeks. From receivable, payable, expense line, revenue stream, and the payroll calendar.
- Æ’days_cash_on_hand
unrestricted cash ÷ (operating expense ÷ 365)
- paysPayablemany
- is paid byReceivablemany
Receivable
An amount owed to the institution by a student, a sponsor, or a donor.
- source
- enum
- amount
- money
- due_on
- date
- collection_risk
- Chance a balance is still unpaid when it comes due. From revenue stream.
- is billed fromRevenue streamone
- pays intoCash positionone
Scenario
A set of assumptions to test before a decision: enrollment, discount rate, salary pool.
- enrollment
- percent
- discount_rate
- percent
- salary_pool
- percent
- Æ’projected_margin
(forecast revenue − forecast expense) ÷ forecast revenue
- changesRevenue streammany
What it enables
3 · What we deploy on top
Applications, agents, and workflows on the model
Each one reads the model and changes it only through governed actions.
Institutional Finance HQ
For the CFO, the controller, and the budget office: cash, revenue, and year-end forecasts, scenarios side by side, and variance by department.
Approve budget transfer: CFO above a set amount
Finance agent
Explains each variance with the transactions behind it, drafts collections follow-ups, and prepares the close checklist.
The controller reviews every draft
Close and procure to pay
Runs the monthly close and reconciliations, then matches invoices to orders and contracts before each payment run.
Release payment run: The controller signs off each run; Move cash to investments: CFO, within the investment policy
4 · Outcomes
What the finance model lets you do
1. Forecast cash and revenue every day
Cash and revenue forecasts update daily, with the drivers behind every change
CFO and treasurerWhat the model sees
Receivables, payables, payroll, enrollment, and aid as they change
2. See the year-end before it arrives
Each department sees where it will land, while a transfer can still help
CFO and budget officeWhat the model sees
Every budget line against commitments, run rates, and past years
3. Manage working capital
Collections start earlier, payment runs follow the cash forecast, and idle cash moves to investments within policy
Controller and treasurerWhat the model sees
Receivables at risk, payables coming due, and idle cash
4. Test decisions before you make them
Scenarios show margin, cash, and covenant headroom side by side before the board meets
CFO and cabinetWhat the model sees
Enrollment, discount rate, salary pool, and rate assumptions
5. Find savings in contracts and spend
Overbilling and duplicates stop before payment, and renewals start with peer prices in hand
Procurement and accounts payableWhat the model sees
Every invoice against its contract, order, and receipt, with peer prices
Projected value when a change goes live, and realized value against a holdout, a matched group, or the prior cycle, reported separately.
Forecast accuracy against actuals, by stream and month
Days cash on hand, and the yield on idle balances
Days to close the books
Start with Institutional Finance
We scope the first domain with your team and agree on the outcomes to measure.
