ASL Budget Forum Nov 21, 2016
Today’s Agenda How we are organized CWU funding source overview Foundation as a source of funds All about reserves CWU spending overview How is this year going? Current ABB Model overview Known limitations Questions/Comments
How We Are Organized (ASL) 1. AC ACAD ADEMIC & STUDENT LIFE The Four Colleges College of Arts & Humanties College of Education & Prof. Studies Five Divisions (in blue) College of Business College of the Sciences Academic Support Ac Same across all funding Provost's Office University Centers types, including Associate Provost's Office Grad Studies & Sponsored Research Foundation Library International Student Programs Student Success Overhead = not self INSTITUTIONAL AL OVE VERHEAD AD supporting (mostly) 2. President's Division 3. Operations Division 4. Enrollment Mgmt Division 5. Bus & Fin Af Affairs Division
How We Are Organized (Overhead) 1. AC ACAD ADEMIC & STUDENT LIFE INSTITUTIONAL AL OVE VERHEAD AD 2. President's Division President's Office Five Divisions (in blue) Athletics Inclusivity/Diversity Public Affairs University Advancement Same across all funding 3. Operations Division Operations Office types, including Facilities Human Resources Foundation Information Services Police & Parking Institutional Effectiveness 4. Enrollment Mgmt Division Overhead = not self Student Financial Services Enrollment Management supporting (mostly) 5. Bus & Fin Af Affairs Division Bus & Fin Affairs Office Financial Planning & Analysis Finance & Business Auxiliaries
The “Color of Money” Matters CWU funding sources FY17 Revenues in Thousands 117,628 Government Federal & State Students Tuition & Fees 70,016 48,800 47,172 26,276 13,157 State/Tuition Summer/Fees Student Activ. Auxiliaries Grants Capital Internal Service Other
Continuing Shades of Color Summer and other Fees FY17 Revenues in Thousands Misc Fees 3,678 Mandatory Fees Cont Ed - Athletics 3,285 - Health Center Unrestricted Fees - Wellness - Summer camps - Learning Commons Course Fees - UESL - Consumables Summer - Study Abroad Indirects - Technology 8,585 - Registrar - Grants - Travel, etc. 5,371 2,423 1,813 1,094 LOCAL 148 INDIRECTS UNR. FEES COURSE FES MANDATORY FEES
Foundations – WA State Universities Total Net Assets 2015 (In Thousands) WSU WWU UW CWU TESC EWU 472,815 74,502 2,428,058 24,601 14,733 24,792 80,000 70,000 60,000 Restricted Unrestricted 50,000 40,000 1,975 30,000 20,000 22,625 10,000 0 WWU CWU EWU TESC
Benchmarking WA Universities Unrestricted Reserves Unrestricted Net Position (In Thousands) WSU WWU UW CWU TESC EWU (7,461) 47,023 869,120 41,269 11,744 74,733 60% 48% 50% 40% 34% 28% 30% 23% 21% 19% 19% 19% 17% 20% 12% 10% 0% WSU WWU UW CWU TESC EWU -10% % of Op Revenue % of Op Expense
Rating Agency Opinion • CWU Operating Reserve Ratio = .3 • Moody’s Median = . 7 Credit Challenges: “ Thin reserves relative to operations ; spendable cash and investments covered expenses a low 0.3 times in FY 2015 ” “ Spendable cash investments, which also remained flat between FY2011-15, covered operations a thin 0.3 times in FY 2015, well below the median of 0.7 times for A1-rated public universities.”
CWU Reserves By Fund Group (in Millions) 30 Millions 20 $8.42 $18.36 $6.49 10 $10.80 $8.23 $7.06 $1.86 $2.94 $2.51 - State/Tuition Summer/Fees Auxiliaries Student Activities Internal Service Pension Liability Committed Available (10) $26.19 FY16 Carryforward Balances: CAH $110K COTS $110K (20) CEPS $ 19K CB $158K Provost $159K (30) President $ 97K Remaining $5.8M
Where the Money Goes NACUBO Spend Categories – provides common classification for comparison Instruction Academic Expenses Research Academic Support Public Service Instruction: Expenses related to credit and noncredit courses, academic, Student Services vocational, technical instruction, remedial, special and extension sessions. Institutional Support Facilities Research: Expenses related to institutes and research centers, and Student Aid individual and project research expenditures for activities specifically organized to produce research outcomes Auxiliary Depreciation Academic Support: Expenses related to support services for the institution's primary missions (instruction, research, public service). This includes: Libraries, Grad Studies, Educational media services, Academic computing support, Ancillary support, Academic administration, Museums & Galleries, Educational Media Services, and Course and curriculum development.
IPEDS Benchmarking % of Total Expenses Spent on Academic Spend Types (2013-14) 20 Peer Institutions WWU CWU EWU 55% 45% 46% 39% 44% 44% 44% 43% 42% 41% 42% 40% 40% 40% 38% 40% 39% 32% 39% 36% 29% A B CWU C D E F G H I J K L M N EWU O P Q R WWU 2013 Academic Expenses 2013 Total Operating Expenses % Academic *IPEDS data 2013 -
Spending Patterns Steady Total Spending 2004 vs. 2016 50% 44.4% 44.0% 45% 40% 35% 28.3% 30% 25.1% 25% 20.3% 18.4% 20% 15% 10.2% 9.3% 10% 5% 0% Academic Institutional Support Auxiliary Other 2004 2016
All Categories vs. Peer Avg 2014 Peer Average CWU Instruction 35% 37% Research 2% 1% Academic Support 8% 6% Public Service 3% 1% Student Services 8% 5% Institutional Support 10% 9% Facilities 5% 6% Student Aid 7% 6% Auxiliary 14% 21% Other 2% 0% Depreciation 6% 8% 100% 100%
FY17 Outlook – Tuition Revenue 3 Academic Terms Headcount - Fall 16 Great New Student Numbers Student Type Budget Actual Variance Transfers flat New Students 1751 1903 152 Retention down slightly Resident UG 9857 9609 -248 Net Result – 233 fewer than budget Non-Resident UG 864 861 -3 Resident Grad 385 399 14 Non-Resident Grad 129 133 4 Resident Waivers down 10%, Tuition down 15% Net Tuition - Fall 16 International waivers up $1M Student Type Budget Actual Variance since 2014, headcount down Resident Undergrad 14,814,667 15,425,820 611,154 Non-Resident Undergrad 3,500,288 2,730,086 (770,202) Net Result - $100K less net Resident Grad 586,411 625,558 39,147 tuition than expected fall Non-Resident Grad 254,773 273,467 18,694 quarter = $300K full year Total 19,156,139 19,054,931 (101,208)
RCM & ABB 1. AC ACAD ADEMIC & STUDENT LIFE The Four Colleges College of Arts & Humanties College of Education & Prof. Studies College of Business College of the Sciences Ac Academic Support Primary Decision Makers: Provost's Office Provost & Deans University Centers Associate Provost's Office Grad Studies & Sponsored Research Library International Student Programs Student Success INSTITUTIONAL AL OVE VERHEAD AD 2. President's Division Primary Decision Makers: 3. Operations Division President & Vice 4. Enrollment Mgmt Division Presidents 5. Bus & Fin Af Affairs Division
Current ABB Model 1. Pay Overhead (academic support + institutional support) expenses first – not an overhead rate 2. Remaining revenues shared by four colleges based on allocation formula: • 80% Student Credit Hours • Rolling 10% Majors three year • 5% Pre-majors average • 5% Graduation Ratio 3. Create Expense Budgets
R esponsibility C entered M anagement (RCM) Subvention Process ASL All ASL Colleges Departments Revenue Provost ABB Budget Dean Subvention Subvention ABB Model Output
Some Known Issues 3 Year Rolling average • Intended to protect in downturn, takes too long in growth Can encourage silos • Rearranging the deck chairs May not reward investments in new programs • Not enough direct linkage between programs and SCH What Else?
Recommend
More recommend
