Item III-A University Financial Report PRESENTED BY Acting Vice - PowerPoint PPT Presentation

Item III-A University Financial Report PRESENTED BY Acting Vice President for Finance and Administration, Angela Poole, CPA Florida Agricultural and Mechanical University June 9, 2016

Pro Forma Financial Statements

Pro Forma Financial Statements

Total Operating Revenues 320,000,000 300,000,000 280,000,000 260,000,000 240,000,000 220,000,000 200,000,000 2012 2013 2014 2015 2016

Total Revenues FY 2014-2015 6% 4% 15% 11% 15% 11% 38% Net Tuition & Fees Contracts & Grants Auxiliary Sales State Appropriation (noncapital) Fed & State Financial Aid Capital Grants & Appropriations Other Revenue DSO/Scholarships

Total Expenses 325,000,000 320,000,000 315,000,000 310,000,000 305,000,000 300,000,000 295,000,000 290,000,000 285,000,000 280,000,000 275,000,000 2012 2013 2014 2015 2016

Operating Expenses FY 2014-2015 6% 8% 5% 20% 61% Compensation & Employee Benefits Services & Supplies Utilities & Communications Scholarships Depreciation

Composite Financial Index (CFI)

Composite Financial Index (CFI)

Composite Financial Index (CFI)

Composite Financial Index (CFI) 3.06 3.50 3.00 2.50 2.00 1.50 0.52 1.00 0.50 (1.93) (0.23) 0.50 0.00 (0.50) (1.00) (1.50) (2.00) 2012 2013 2014 2015 2016

CFI 5-Year Trend (Graphical Financial Profile) FY 2012-2013 FY 2013-2014 FY 2011-2012 FY 2014-2015 Primary Primary Primary Primary Reserve Reserve Reserve Reserve 2.61 2.92 2.10 Net Net Net 0.77 Net 6.18 Operating Operating Operating Viability 0.00 Viability 2.68 0.00 Viability 2.45 0.00 Viability 0.94 0.00 Operating Revenues Revenues Revenues 0.00 0.00 0.00 0.00 Revenues* * * * Return on Return on Return on Return on Net Net Net Net Position Position Position Position FY 2015-2016 (projected) Target CFI Primary Reserve 0.69 Net Operating Viability 0.88 0.00 Revenues* 0.00 Return on Net Position *negative values are rounded to zero for graphical representation

FY14 FY13 FY15 FY12 FY16* FAMU's CFI Scores

Item III- B FY 2015-2016 Athletics Update PRESENTED BY Acting Vice President for Finance and Administration, Angela Poole, CPA Athletic Director, Milton Overton Florida Agricultural and Mechanical University June 9, 2016

Preliminary and Tentative 15

Challenges Declining enrollment • Declining institutional support from auxiliaries and Foundation • Not in compliance with Florida Board of Governors Regulation 9.013(3) • requiring athletics to be self-supporting Lack of revenues from game day assets (parking and multimedia) • Preliminary and Tentative 16

FY 2015-2016 Projection Projected Difference Expenses Budgeted Total Total Projection (Total Projections Revenues Budgeted FY 2015-2016 to Budget) Salary 3,397,584 3,395,869 Student Athletics Fees 4,160,000 4,160,000 - OPS 352,103 347,218 Tuition Waivers - 104,682 104,682 Expense 3,610,483 3,307,471 Football Gate Receipts 450,000 290,269 (159,731) Scholarship 1,450,000 1,759,701 Game Guarantees 685,000 682,500 (2,500) Mandatories 120,462 120,462 Athletic Concession Sales 75,000 92,830 17,830 OCO 6,868 6,779 Athletic Program Sales 10,000 6,495 (3,505) Total 8,937,500 8,937,500 Football Season Tickets 450,000 323,710 (126,290) Athletic Advertising Sales 200,000 200,000 - Royalty 125,000 125,000 - NCAA Revenues 450,000 450,000 - Ticket Sales Away Games - 17,410 17,410 MEAC Revenue 250,000 250,000 - Florida Classic Consortium 760,000 869,204 109,204 Cash Over and Short - 842 842 Other Auxiliary Revenue 7,500 37,656 30,156 Basketball Receipts 15,000 18,762 3,762 Miscellaneous Revenue 500,000 235,878 (264,122) Transfers from DSO/Aux 800,000 - (800,000) Total 8,937,500 7,865,238 (1,072,262) Preliminary and Tentative 17

The Way Forward • Rebuilding infrastructure • Deficit reduction (past and future) • Revenue generation • Expense reductions • Accounting reclassifications Preliminary and Tentative 18

Item IV-A Transfer of DSO Building to University (625 E. Tennessee St.) PRESENTED BY Acting Vice President for Finance and Administration, Angela M. Poole, CPA and Associate Vice President for Facilities, Sameer Kapileshwari Florida Agricultural and Mechanical University June 9, 2016

Building Information • Located at 625 East • Interior gross area totals Tennessee Street, the 30,583 sq.ft building was purchased 97 parking spaces, plus • by the FAMU Foundation two designated disabled in 2012 for $700,000. parking spaces Executive Board Room, • FAMU Foundation • two kitchenettes and operations are housed at catering prep spaces this location with Building is often used for • approximately 11 University meetings and employees (6,776 sq.ft). workshops, and corporate and community University Advancement • engagement functions. and Alumni Affairs occupied the building in February 2015 (4,105 sq.ft). Preliminary and Tentative 20

Options for Consideration Option 1: University leases space from Foundation Total Annual Square Annual Department Rental footage Rental Rate EXPENSE ITS 15,313 $ 15/sq. ft. $229,695 University Advancement 4,105 $ 15/sq. ft. $61,575 Total 19,418 $291,270 - University leases space from Foundation - Foundation is responsible for maintenance Preliminary and Tentative 21

Options for Consideration Option 2: University acquires the property with leaseback to the FAMU Foundation Total Annual Square Annual Department Rental footage Rental Rate INCOME Foundation 6,776 $ 15/sq. ft. $101,640 Total 6,776 $101,640 – University owns the building and rents to the Foundation. – The University will receive free and clear title to the property. – University assumes all responsibilities for utilities, operations, and maintenance. – If approved by the Legislature, POM funding through the BOT/BOG process could be estimated at $6/sq. ft. - $116,508 Preliminary and Tentative 22

Recommended Options and Next Steps Staff recommends Board approval for Option 2 , that will include conducting necessary due diligence. If it is determined through the search and other means that we should not move forward, then the process would cease. Preliminary and Tentative 23

Thank you Questions? Preliminary and Tentative 24

Item IV – B Department of Education (DOE) Capital Financing and Conceptual Development for Palmetto North PRESENTED BY Acting Vice President/CFO Angela M. Poole, CPA Associate Vice President for Facilities Sameer Kapileshwari Florida Agricultural and Mechanical University June 9, 2016

What is a Living-Learning Community (LLC)? LLC - Residential housing programs that • incorporate academically based themes and build community through student learning • Students with similar interests, goals, and academic programs are placed on designated floors within the residence halls Participants in the program partake in • special academic and/or extra-curricular programming designed especially for them Preliminary and Tentative 26

Living Learning Communities at FAMU Five major-specific LLCs: Allied Health • Sciences; Business; Journalism, Science, Technology, Engineering, and Math (STEM); Honors (all majors) • Currently, FAMU Village is the only LLC Implemented in Fall 2015 (203 students) • For incoming freshmen only based on • space availability Preliminary and Tentative 27

How do LLCs contribute to retention and student success? Smooth academic transition to college • Feeling a sense of belonging to the institution • Smooth social transition to college • Higher college grades • • Increased first year retention rates Increased levels of student engagement • Increased interactions with faculty • Increased persistence and graduation rates • Data Source: The National Study of Living-Learning Programs Preliminary and Tentative 28

Closures of Deteriorating Facilities Palmetto North Preliminary and Tentative 29

Closures of Deteriorating Facilities Palmetto North 30 Preliminary and Tentative

FAMU Living-Learning Community Concepts Palmetto St. • 440 beds within 2 and 4 bedroom suites • Create a park between existing neighborhood and new development as part of the community enrichment and as a buffer from the new development. • Other amenities - Bike share development, roof top terraces, basketball and volleyball courts. Preliminary and Tentative 31

FAMU Living-Learning Community (LLC) Concepts Precedent Preliminary and Tentative 32

FAMU Living-Learning Community Concepts Lounge spaces, retail, studios, and classroom spaces are on the ground floors and residence are on the upper floors. Preliminary and Tentative 33

Existing Housing System Occupancy Analysis Preliminary and Tentative 34