Financial Update and Budget Meeting Highlights
The financial update and budget meeting on February 6, 2014, emphasized the importance of staying focused on the mission and executing the strategy to achieve growth and financial strength. The meeting discussed operating expenses by campus, operating reserves from FY2008 to FY2014, operating fund revenues, net revenues and expenses, and outlined next steps to control expenses, hiring plans, committee monitoring, and revenue projections for FY2014.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
FINANCIAL UPDATE AND BUDGET MEETING FEBRUARY 6, 2014
The Path Forward Stay focused on our mission and execute on our strategy Leads to bigger, stronger, more engaged university Growing and acquiring the physical assets to support growth Profile and reputation improving Significant growth in philanthropy UM System support for strategy facilities based upon pro forma Challenged to get back on track to financial strength 2
Days Operating Expense by Campus (Recommended is 65-130 days) 2013 Campus 2011 2012 Columbia 110 115 118 Missouri S&T St. Louis 108 116 123 98 96 84 Kansas City 43 43 36
Operating Reserves FY2008 to FY2014 $45.0 $40.0 $35.0 $30.0 $25.0 Budget Actual/Projected Proforma $20.0 $15.0 $10.0 $5.0 $0.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY14 Budget projected as of 10/31/13 . 4
Operating Fund Revenues FY2008 to FY2014B 180 157.8 152.9 160 147.4 141.1 133.7 140 128.5 127.4 124.5 120.9 119.1 113.3 120 103.7 98.8 Gross student fees Net student fees State Appropriations Other revenues 92.7 100 95.4 80 84 80.6 79.5 75.4 75.1 75.1 60 40 40.5 38.7 38 37 35.6 34.8 33.4 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Bud FY2014 Budget projected as of 10/31/13. 5
Net Revenues and Expenses Operating Fund (in millions) $260 249.1 $250 242.3 $240 243 232.1 228.6 238.3 $230 234.7 216.8 232.5 219.9 229.8 $220 Net Revenues Expenses 210.3 216.2 $210 208.1 $200 $190 $180 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Bud FY14 Budget projected as of 10/31/13 . 6
Summary FY 2014 First submission ($18.1 M) After first request ($16.3 M) Response to targets (Ask $?) ($8.8 M) After additional challenge ($6.1 M) Desired outcome FY 2014 Improve 13 ($4.1) Target FY 2015 > Breakeven 7
FY 2014 Next Steps Expense Control Hiring Plans Soft Freeze Hiring Committee Monitor Unit Accountability Plans Consultant for Shared Services Revenue Enrollment projections Marketing, Recruiting, etc. Other Unit Pro Forma Development Budget Model Revision 8
The Hiring Committee Considerations Consistent with mission/strategy/accreditation/etc. Consistent with hiring plans Included in Budget Compliance with 2014 budget target Reserve status Potential to improve compliance with CRR Compliance with minimum faculty load 9
CRR 310.080 Regular Faculty Workload Policy No regular faculty member can be assigned either fewer than 12 section credits or fewer than 180 student credit hours per academic year without an instructional waiver requested by the Department Chair and issued by the Dean At $270 per UG-SCH, 180 SCH = $48,600 per year How does this compare to average compensation? Should tuition cover other costs? What level of compliance do we have with these minimum standards? What would be the value of increased compliance? What would be the downside to compliance? How much of our current challenge could be met with improvement? 10
Enrollment Growth FS08 to FS13 10,000 9,000 8,000 7,000 6,000 Dual High School Undergraduate Graduate Professional 5,000 4,000 3,000 2,000 1,000 0 FY08 FY09 FY10 FY11 FY12 FY13 12
Salaries and Wages All Funds (in millions) $200.0 $186.5 $176.2 $180.0 $173.3 $168.0 $163.9 $160.0 $140.0 Academic $120.0 $105.9 Academic administrative $105.3 $102.0 $98.5 $100.0 Administrative (non-academic) $80.0 Total $60.0 $40.5 $38.2 $37.8 $37.0 $40.0 $30.4 $29.2 $28.4 $28.2 $20.0 $- FY10 FY11 FY12 FY13 FY14 Budget (Units) 13
Change in Net Assets (Operating Fund) Academic Units FY11 FY12 FY13 Arts and Sciences Biological Sciences (2,019,225) (709,452) (3,235,929) (864,843) (1,184,078) 202,310 Bloch School Conservatory Dentistry Education Computing/Engineering (931,556) (291,409) 576,219 409,524 (473,286) (1,628,552) (119,484) (219,836) (254,289) (949,042) (1,721,053) (450,736) 453,360 (864,699) (1,443,851) Law Nursing Medicine Pharmacy Graduate Studies 338,534 (1,642,125) 1,762,902 950,345 21,533 (50,885) (431,613) 482,602 2,640,055 9,208 (285,716) (460,832) 2,364,498 (332,440) 246,118
Change in Net Assets (Operating Fund) Other Academic University College KC Rep FY11 FY12 FY13 0 8,595 121,247 61,050 10,078 70,300 Academic Affairs 1,324,101 (78,634) (562,396) Information Services Research (262,140) (590,185) (2,677) 1,742,092 (950,795) (266,819) Libraries 30,564 10,846 192,044
Change in Net Assets (Operating Fund) Non- academic Chancellor FY11 FY12 FY13 (12,438) (244,403) 242,710 MCOM (68,817) (99,454) (69,984) Advancement Administration/F inance Diversity Human Resources Scholarships/wai vers Student Affairs Campus wide/adj. 148,049 (2,634,594) 51,920 2,624,391 (265,156) (2,125,877) (299,038) 86,524 (400,054) 17,655 (313,081) 56,039 2,618,146 4,207,526 2,234,278 (288,304) 819,139 868,239 (402,399) (975,410) 1,130,368
Operating Margin by Campus 2013 Campus 2011 2012 Columbia 9% 6% 6% Missouri S&T St. Louis 8% 6% 5% 12% 4% 4% Kansas City 1% 1% 0%
Net Operating Sources (Uses) by Campus (in millions) 2013 Campus 2011 2012 Columbia 52.6 33.4 38.2 Missouri S&T St. Louis 10.0 7.4 6.3 18.4 6.2 5.3 Kansas City 2.5 3.0 (.3)
Change in Net Assets by Campus (in millions) 2013 Campus 2011 2012 Columbia 43.0 24.5 24.3 Missouri S&T St. Louis 7.1 7.1 3.5 11.1 2.9 (4.9) Kansas City 1.3 0.4 (4.0)
FY 2014 Next Steps Expense Control Hiring Plans Soft Freeze Hiring Committee Monitor Unit Accountability Plans Consultant for Shared Services Revenue Enrollment projections Marketing, Recruiting, etc. Other Unit Pro Forma Development Budget Model Revision 20
