The campus is taking action to mitigate the financial impact of COVID-19.
Updated Mar. 2, 2021
Based on the Financial Mitigation Strategies, both central offices and units across campus are called to engage in efforts to address immediate financial needs and the limited-term impacts of the pandemic. Current mitigation actions include:
|Support for remote instruction||Campus loan program||Unit mitigation plans||Campus mitigation for scientific recharge units|
Support for remote instruction
In order to provide the best possible remote experience for students, beginning in Fall 2020, the campus provided approximately $500,000 per quarter to units to support additional costs related to remote instruction. Just over half this amount was allocated to the colleges and professional schools that offer undergraduate courses and minors, and the remainder provided additional fee remission for TAs and Readers. The funds can be used to fund remote instructional improvements as identified by the Deans, and are primarily being used for additional TA and Reader support.
- Spring 2021 Support for Remote Instruction - March 2, 2021
- Winter 2021 Support for Remote Instruction - November 10, 2020
- Fall 2020 Support for Remote Instruction - September 14, 2020
Campus loan program for units with extraordinary needs and ability to repay
The campus has issued a call for applications for internal loans to auxiliary and self-supporting units that meet certain criteria. $70.2 million in loans with terms of 10-20 years were approved for the following units:
- Student Affairs: Housing and Dining Services
- Student Affairs: UC Davis Stores
- Finance, Operations, and Administration: Transportation Services
- School of Veterinary Medicine: Specialty Services Clinics
- Continuing and Professional Education
Loans will be funded out of internal borrowing funds and will address a portion of COVID-19 related losses. Units will repay loans from future revenue. If necessary, loan amounts may be adjusted based on the final financial outcomes for fiscal year 2020-21.
Unit mitigation plans
In December, campus units developed mitigation plans to address COVID-19 related losses experienced in their units that are not addressed through campus programs. The initial plan addressed losses from March through December 2020. Units reported local mitigation actions totaling over $50 million, largely due to one-time savings from travel, entertainment and vacancy management. These plans were reviewed by the Budget Framework Advisory Committee, and Provost Croughan sent a message to unit leaders asking for these plans to be implemented. A revised plan will be requested in the spring that addresses losses through June 2021 and updates the prior plan, as needed. These plans help identify unit capacity to address mitigation needs with unit sources as well as inform other budget decisions. A Mitigation Plan Template that outlines the assumptions and instructions for submitting these plans is available for download.
Campus mitigation for COVID-19 losses to scientific recharge units
Campus has identified a need for one-time mitigation funding for scientific recharge units (campus core facilities and other contract and grant based recharges) that have extraordinary losses due to the COVID-19 pandemic. The campus mitigation program will be available to units that meet certain criteria. Applications were due January 27 and funding decisions are expected by mid-March.
- If our unit is close to $50K recharge income annually but slightly under, will our application still be considered?
- If our rate has not been reviewed recently, will our application still be considered?
- Yes, it will be considered but there is no guarantee of funding. Consider providing an explanation addressing why the rate has not been reviewed and when the next review is anticipated.
- If our unit has not reported lost revenue or COVID19 expenses through the campus process, can we still apply?
- Yes, but please contact your AD/COO as soon as possible to ensure your unit is following campus guidelines for reporting lost revenue, and coding expenses with the COVID19 project code. Corrections to prior months (back to July 2020) and current month lost revenue must be reflected in your unit’s January 2021 lost revenue report to BIA.
Please clearly note discrepancies in the reported vs actual lost revenue section on tab 2. It is fine to add notes on this tab.
If the unit did not report lost revenue because it did not have any, then it is not eligible for scientific recharge mitigation.
- Should positive operating carryforward balance be considered when determining the amount of mitigation funding to request?
- Utilization of positive operating carryforward should be considered when determining your unit’s mitigation need/funding request. Reserves for improvement or equipment do not need to be considered.
- The formula for Net Income or Loss YTD on Tab 2 does not seem right.
- It is correct, assuming signs are preserved when pulling reports from Decision Support. (CR)/DR has been added in addition to comments in some cells on this tab.
- What is the difference between Reported and Actual Lost Revenue and COVID19 Expenses?
- If your unit has regularly been reporting Lost Revenue to BIA via the monthly process, and recording eligible expenses under the COVID19 project code, then Reported and Actual will be the same amount.
If not, the amounts will differ. They also may differ if changes need to be made to what was reported in prior months. For example, if a unit reported $1000k Lost Revenue for December, but it was determined in January that the amount was actually $1200.
- Can we include additional backup?
- What are you looking for in Tab 3, FIS 50?
- The goal of this request is to capture the org structure and all accounts relevant to the recharge activity. Depending on the recharge operation, there may be one or multiple funds. You may include an FIS 50 highlighting relevant accounts, and/or include an FIS 1. If an FIS 1 is used, make sure to check the OP Fund Box to capture fund number(s). The tab naming has been updated.