Dear FAS Community,  

I’m writing to share an update on UCSF’s financial outlook, how FAS is taking action, and how you can stay in the loop.   

While much is still uncertain, I want to provide clarity where I can and encourage open and transparent communication.  

UCSF’s financial outlook   

Across the country, changes to federal funding policies have affected research institutions and the work they do.  

 While the State funding picture is looking better, our F&A cost recovery is behind plan and there are multiple challenges arising in our relationship with the federal government, from terminated awards, challenges with reimbursement for work already completed, and delays in new awards.  F&A cost recovery is funding provided for indirect administrative and facilities costs not directly tied to a specific project, but which are essential for the overall operation of the institution, such as facilities and equipment depreciation, interest payments, operations and maintenance (including utilities), libraries, and general, departmental, and sponsored projects administration (including HR, IT, finance, ethics and compliance, and executive leadership). Find out more about sources of funding on UCSF Finance Explained. 

UCSF took steps starting in March, including a hiring freeze, to address fiscal uncertainty driven by these federal changes and proposed cuts to the state budget. Now, we must take additional steps as UCSF works to protect its ability to advance our mission.   

To best position UCSF for the future, we must protect our mission-critical areas of research, learning, and patient care so UCSF can remain an institution with a new operating model that continues to benefit society. In some instances, this will mean reducing and limiting our current functions and workforce.    

How FAS is taking action   

With your help, FAS will focus on several strategies. First, with the hiring freeze, FAS is moving to a model with tighter controls over hiring and staffing levels going forward. Second, departments will focus on planning for the next year and efforts to reduce the cost of administrative and operational support. Third, any fund balances remaining at year-end will be pooled at the FAS level, rather than department, and allocated toward the highest priorities in UCSF.  

We are also partnering with the Enterprise Program Management Office (EMPO) to identify, evaluate, and activate high-impact financial transformation projects that move beyond mere cost-saving measures. Project One is another initiative that will best position us to achieve long-term change.  

FAS leaders are also working on opportunities within each department. While I know we are facing several obstacles, I think the expertise of our community is one of our bright spots.    

What we know about onsite work   

Chancellor Hawgood reminds us that our work is fundamentally rooted in relationships. Collaboration, mentorship and scientific exchange thrive when we are together, and an onsite presence is essential to sustaining and building upon our excellence.   

This June, we plan to share updated guidance that highlights the shared expectation that our community work together, onsite. We are pivoting from earlier thinking that allowed greater flexibility and the opportunity for some teams to remain largely offsite. Instead, I will be asking FAS teams to move to a model in which work is primarily onsite. There will be exceptions based on FAS department needs, the work performed in the unit, the employee’s level in the organization and other factors.  

While we believe this change will help build and enhance the UCSF community, I understand that change can be difficult and impactful. With that in mind, I want to highlight some key points about this upcoming guidance:  

• For some of you, this will not represent a change to your current work. This may be true because you already work onsite or because your unit will request exceptions that mirror your current work arrangements.
• While we plan to share this updated guidance in June, there will be an implementation period, with shared on-site expectations taking full effect in the Fall.
• This implementation period is designed to support and mitigate the impacts on our employees and to ensure that UCSF can work with and provide notice to key stakeholders, like our employee groups and unions.   

To support more of our community being onsite, leadership teams are also working to ensure employees have appropriate workspaces and new commuting options including new park-and-ride, shuttle and Uber commuter shuttle options.   

How to stay in the loop  

With our rapidly evolving environment, it’s critical that we increase communication. I will continue to email updates, ensure managers have updated information to share with you, and my office will host Town Halls to specifically address these issues and give you an opportunity to ask questions.   

Most importantly, I encourage you to connect with your managers and stay engaged in our efforts to keep what is special about UCSF.   

Thank you for your continued dedication and commitment to UCSF.  

Erin S. Gore
Senior Vice Chancellor
Finance and Administration