Budget Review

Transcription

1 Budget Review June 21, 218

2 TABLE OF CONTENTS SUMMARY PROPOSED BUDGET HIGHLIGHTS 2-4 CONSOLIDATED BUDGET COMPARISON SUMMARY TOTAL 5-6 SUMMARY OF STATEMENT OF ACTIVITY 7 SUMMARY OF SOURCES AND USES OF CASH 8 CAPITAL OUTLAY 9-1 LONG-TERM CASH FLOW PROJECTIONS CONSOLIDATED BUDGET COMPARISON SUMMARY REPORTS ADMINISTRATION REAL PROPERTY OPERATIONS ENTERPRISES TOTAL TITAN SHOPS DINING SERVICES OPERATIONS 28-3 AUXILIARY SERVICES CONSOLIDATED BUDGET DETAILS 31-36

3 Summary CSUF ASC Budget Review Page 1

4 CSU FULLERTON AUXILIARY SERVICES CORPORATION PROPOSED BUDGET HIGHLIGHTS The operating and capital budget will provide goods and services to support the mission of the University. The budget is subject to assumptions, estimates, forecasts and judgments made by the managers and directors of the Corporation who cannot predict all the actions, and risks, over which there may not be control, and which can cause actual results to differ materially. Some of the factors that may cause such differences include: The state budget; Changes in enrollment; Competition (on and off-campus); and Environmental liability and regulations. As a result, the ASC s operating and capital budget is based on assumptions, historical performances, and judgments of senior management regarding how the corporation will perform. The proposed operating revenue of $4.1 million, offset by expenditures of $39.1 million, generates a net surplus of approximately $944,. In addition, the proposed net income is projected to increase by over $581,, as compared with the current year s forecast. Revenues Total projected Revenues are anticipated to increase by approximately $2.7 in comparison to the current year s forecast. Revenue By Division 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, Titan Shops Building Dining Services Adminis tration FY Actual 16,39,762 1,666,35 7,391,179 $3,428,228 FY Forecast 14,886,836 1,974,638 7,274,279 $4,233,298 FY18-19 Proposed 16,1,635 11,789,949 7,94,49 $4,29,87 CSUF ASC Budget Review Page 2

5 Revenues (continued) Total revenues for Real Property are projected to increase by $8, mainly due to the completion and renting of the Titan Hall building. In addition, Dining Services sales also have an anticipated increase of $7, due to the addition of new venues in the student union. Titan Shop s revenues are estimated to increase by $1,2,, due to price increases on general merchandise items. Moreover, Titan Shops is expecting that the new Point of Sales system will provide analytical tools that will help make better decisions to increase sales. Expenses ASC s total operational expenses are projected to increase by $2.1 million in comparison to the current year s forecast. 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, Expenses By Division Titan Shops Building Dining Services Administrat ion FY Actual 15,235,776 9,676,693 6,698,397 5,629,84 FY Forecast 14,635,948 9,437,263 7,245,185 5,687,648 FY18-19 Proposed 15,84,756 9,972,38 7,71,22 5,663,165 Titan Shop s expenses are projected to increase in comparison to the current year s forecast in the following areas: (1) cost of goods sold - due to the anticipated increase in sales; (2) operations - due to the depreciation of a new POS system, which will increase operational expenses by approximately $14,. In addition to the above stated increased expenses, total increased proposed expenses are approximately $1,2,. Real Property expenses are projected to increase from the current year s forecast due to depreciation expenses incurred as the Titan Hall project reaches completion, and an additional Building Engineer to assist the Chief Engineer for all ASC properties. Total increased proposed expenses are approximately $5,. CSUF ASC Budget Review Page 3

6 Expenses (continued) In Dining Services operations, there is an increase in costs due to adding new venues. This will result in additional costs associated with running the venues including tenant improvement depreciation and increased cost of goods sold (due to increase in sales). Total expenses for Dining Services are anticipated to increase by approximately $4,. In addition, prior legislation increases minimum wage from $11. to $12. an hour, increasing operational costs. This is particularly relevant in the Dining Services and Titan Shops operations as they have the highest percentage of minimum wage employees. Also incorporated is a corporate-wide employee merit pool of 3%. Sources and Uses of Cash The proposed operating, financing, and non-cash transactions (including depreciation), as reported in the summary of sources of cash, generates $8.7 million from the following activities: Operating surplus $ 945, Non-cash depreciation 2,639, Post-retirement obligation (PRBO) 142, Funds liquidated from Investment 5,, Total cash generated: $ 8,726, Sources of Cash Cash from operating activities 11% Funds Liquidated from Investment 57% Depreciation 3% Post retirement benefit 2% Proposed cash usage of ($6.7) million is as follows: Proposed capital outlay requests ($4,415,) Net financing activities (1,95,) Western State Deposit repayment (4,) Total uses of cash: ($6,72,) Uses of Cash Investing Activities 3% Capital Outlay 7% CSUF ASC Budget Review Page 4

7 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Auxiliary Services Total Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Sales Other Income 22,34,654 2,65,862 84,964 22,418,931 24,2 22,499,935 76,943 Total Sales 22,34,654 2,735,826 22,443,131 22,576,878 Cost of Goods Sold Cost of Sales 13,13,984 12,24,335 13,9,376 13,35,12 Total Cost of Goods Sold 13,13,984 12,24,335 13,9,376 13,35,12 Payroll Expense Salaries and Wages Benefits 7,162,82 1,637,329 7,216,82 1,619,93 7,543,128 1,69,377 7,351,11 1,745,68 Total Payroll Expense 8,799,411 8,835,913 9,233,55 9,96,169 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Commission & Royalty Supplies Depreciation Bank and Discount Charges Insurance Debt Service & Interest Exp. Audit and Legal Repairs and Maintenance Merchant Supplies Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Utilities Employee Development Other Direct Costs Departmental Allocation Public Relations Administrative Fee Equipment Rental/Expense 22,616 14, , ,81 296,82 2,5, , ,967 2,645,199 84,22 2,68, , ,97 613,989 69,166 91,332 1,323,381 34,554 89,141 1,19,32 56, ,59 11, , ,11 122, ,74 293,73 2,119, ,75 282,226 2,367,528 77,864 2,194, , ,99 715, ,78 74,63 1,37, ,49 929,56 1,159,21 66,915 1,441,776 18, ,175 17,354 14, , ,654 2,457, ,56 25,941 2,367,855 94,484 2,9, , ,7 736, ,133 85,14 1,366,58 37,69 928,99 95,954 59,648 1,513,29 87, , , ,51 54, ,45 2,657, , ,667 2,278,552 82,864 2,169, ,211 11, , ,363 59,771 1,51,97 288, , ,435 47,941 1,55,55 81,859 Total Operating Expenses 15,378,74 15,965,795 16,25,345 16,731,168 Commission Income Commissions Income 73,48 644,67 668, ,146 Total Commission Income 73,48 644,67 668, ,146 Other Income Unrealized Gain/Loss Investmnt Administrative Services Indirect Cost Recoveries 14 1,158,855 2,64,18 6,233 1,933,14 2,142, 24 1,857,648 2,36, 24 1,989,846 2,17,8 CSUF ASC Budget Review Page 5

8 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Auxiliary Services Total Prior FY Actual Forecast Current Year Budget Proposed Budget Investment/Interest Income Rental Income Other Income 92,54 1,177,219 1,195,548 26,439 1,346,273 1,534,569 84,756 11,534,685 1,194,95 36,432 11,132,149 1,479,164 Total Other Income 14,687,834 15,988,618 16,78,279 16,87,839 Net Income / (Loss) 171,76 363,8 1,29, ,424 CSUF ASC Budget Review Page 6

9 General Fund: REVENUES EXPENSES SURPLUS/(DEFICIT) FY FY FY18-19 FY FY FY18-19 FY FY FY18-19 Actuals For ecast Pr oposed Actuals For ecast Pr oposed Actuals For ecast Pr oposed Administration $ 1,361,988 $ 2,89,83 $ 2,12,862 $ 3,565,66 $ 3,545,469 $ 3,493,152 $ (2,23,78) $ (1,455,666) $ (1,372,29) Grants & Contracts 2,66,24 2,143,495 2,17,8 2,64,18 2,142,179 2,17,13 2,222 1,316 (5) Total General Fund 3,428,228 4,233,298 4,29,87 5,629,84 5,687,648 5,663,165 (2,2,856) (1,454,35) (1,372,295) Building Fund Description College Park 4,95,77 5,5,111 5,5,116 3,961,72 3,896,155 3,991, ,375 1,18,956 1,13,958 Irvine Campus 4,536,264 4,57,339 4,713,153 3,512,979 3,465,163 3,422,674 1,23,285 1,15,176 1,29,479 Gables 36, ,664 35,94 213,46 23,72 222,12 93, ,592 83,928 Titan Hall 549,47 737,934 1,393,92 1,469,28 1,484,154 2,48,238 (92,233) (746,22) (655,146) Building M anagement & Other 231,882 6,93 6, (231,882) (6,93) (6,) El Dorado Ranch 369, ,59 372, ,84 382, ,226 81,735 (37,36) 9,422 Total Building Fund 1,666,35 1,974,638 11,789,949 9,676,693 9,437,263 9,972,38 989,612 1,537,375 1,817,641 Enterprises operations: Dining Services Food Cour t 1,966,585 1,596,556 2,174,26 1,954,611 1,756,363 2,251,495 11,974 (159,87) (77,289) Cater ing 92,7 848,11 913, ,99 973,918 1,22,431 (35,92) (125,97) (19,183) Concessions 199,822 28,747 36,1 213, , ,888 (13,829) (2,219) 6,113 Carl's Jr. 841, , ,12 772, ,91 862,722 69,181 36,327 (6,62) Langsdorf Hall 367, , , , ,76 375,676 (4,428) (24,49) (2,465) Nutwood Café 357, ,583 6, 44, , (46,678) (61,91) 5,484 Vending/Carts/Rec Express 481,2 391,39 49,764 51,171 78,555 83, , , ,12 Starbucks-Library/CBE/TSU 2,274,469 2,682,548 2,91,877 1,991,818 2,61,283 2,84,74 282,651 72,265 97,137 Total Campus Dining 7,391,179 7,274,279 7,94,49 6,698,397 7,245,185 7,71,22 692,782 29,94 239,189 Titan Shops Bookstor e Summary of Proposed Budget Statement of Activity 18/19 Titan Text & Publishing 4,927,634 4,27,822 4,326,93 4,193,221 3,896,926 3,935,29 734, ,896 39,83 E-Ser vices 2,138,648 2,291,549 2,552,181 1,997,871 1,966,998 2,276,439 14, , ,742 General M erchandise 2,67,116 2,537,792 2,827,495 1,496,818 1,495,41 1,626,962 1,173,298 1,42,751 1,2,533 Titan Tech & Office 4,524,12 4,134,66 4,74,113 4,249,555 3,85,147 4,459, , , ,8 Convenience Stores 1,287,33 1,226,596 1,262,744 1,76,43 1,82,25 1,143,35 211, , ,79 Irvine Campus 347, ,553 36, , , ,525 28,44 17,961 15,694 Oper ations 143,954 93,458 67,79 1,92,334 2,3,39 2,55,192 (1,758,38) (1,936,581) (1,987,42) Total Titan Shops 16,39,762 14,886,836 16,1,635 15,235,776 14,635,948 15,84,756 83,986 25, ,879 Total Enterprises Operations 23,43,941 22,161,115 24,41,44 21,934,173 21,881,133 23,541,976 1,496, , ,68 TOTAL SURPLUS (DEFICIT) $ 37,525,474 $ 37,369,51 $ 4,121,863 $ 37,239,95 $ 37,6,44 $ 39,177,449 $ 285,524 $ 363,7 $ 944,414 CSUF ASC Budget Review Page 7

10 SUMMARY OF SOURCES AND USES OF CASH Prior F.Y. Actual 216/17 Forecast Fiscal Year 217/18 Proposed Budget 218/19 SOURCES OF CASH OPERATING ACTIVITIES General Fund $ (2,45,) $ (1,454,) $ (1,372,) Real Property 1,193, 1,537, 1,818, Bookstores 514, 251, 26, Dining Services 62, 29, 239, University Support Programs (92,) - - University Extended Ed. UEE (435,) - - Investment 2,71, - - TOTAL CASH FROM OPERATING ACTIVITIES 2,6, 363, 945, NON-CASH TRANSACTIONS Depreciation 2,51, 2,119, 2,639, Post retirement benefit 92, 132, 142, Other cash & cash equiv. provided by Operation. (1,859,) - - TOTAL NON-CASH TRANSACTIONS 284, 2,251, 2,781, FINANCING Funds Liquidated from Investment 2,, 2,, 5,, TOTAL FINANCING 2,, 2,, 5,, TOTAL SOURCES OF CASH $ 4,344, $ 4,614, $ 8,726, USES OF CASH CAPITAL OUTLAY Administration - Disaster Recovery Bookstores 677, 73, Dining Services 343, 899, 9, Titan Hall Seismic work 4,148, 1,189, Titan Hall: HVAC/Landscape/Construction 3,355, 4,418, - Titan Hall Tenant Improvements 717, 375, Prior Year Capital Budget Carry Forward 353, 3,14, TOTAL CAPITAL OUTLAY 9,593, 6,579, 4,415, INVESTING ACTIVITIES Pay down Heights $2 Mil. 4, 5, 3, College Park(LT Note $ 22 Mil.) Principal pmt. 845, 88, 925, College Park W.(LT Note $ 13.5 Mil.) Principal pmt. 195, 25, 215, Irvine Campus (LT Note $ 3.15 Mil.) Principal pmt. 43, 445, 465, TOTAL INVESTING ACTIVITIES $ 1,87, $ 2,3, $ 1,95, OTHER USES OF CASH Funding Post Retirement Obligation 75, Western State Deposit repayment - 8, 4, TOTAL OTHER USES OF CASH 75, 8, 4, TOTAL USES OF CASH 12,213, 9,49, 6,72, NET SOURCES & (USES) OF CASH (7,869,) (4,795,) 2,6, Net Cash & cash equivalents at beginning of year 18,26, 1,391, 5,596, Cash and cash equivalent at year end $ 1,391, $ 5,596, $ 7,62, CSUF ASC Budget Review Page 8

11 Capital Outlay CSUF ASC Budget Review Page 9

12 Capital Outlay Dining Services Starbucks Library - Refresh $ 3, Starbucks CBE - Remodel 6, Total Dining Services $ 9, Real Property Operations Titan Hall Tenant Improvements 375, Total Real Property Operations 375, Total Capital Requested - fiscal year $ 1,275, Prior Year Capital Budget Carry Forward Dining services 54, Bookstore 41, Real Property 2,226, Total Capital Carry Forward $ 3,14, Total FY18/19 Proposed Capital and Prior Year Carry Forward $ 4,415, CSUF ASC Budget Review Page 1

13 Long-Term Cash Flow Projections CSUF ASC Budget Review Page 11

14 Cash Flow Projections Long-term Cash Flow Projections $('s) Audited Financials Forecast Projected SOURCES OF CASH Operating Activities General Fund (2,45) (1,454) (1,372) (1,413) (1,456) (1,499) (1,544) (1,591) (1,638) (1,687) (1,738) (15,392) Investments 2, Real Property 1,193 1,537 1,818 1,836 1,855 1,873 1,892 1,911 1,93 1,988 2,8 18,647 Bookstores ,687 Dining Services ,268 University Support Programs (92) University Extended Ed. UEE (435) Total Cash from Operating Activities 2, ,29 Non-cash transactions Depreciation 2,51 2,119 2,639 2,639 2,639 2,639 2,64 2,666 2,693 2,72 2,747 26,142 Post Retirement Benefit ,119 Other Cash & Cash Equiv. Provided by Operation. (1,859) Total Non-Cash Transactions 284 2,251 2,781 2,796 2,816 2,821 2,89 2,924 2,959 2,994 3,29 28,261 Total non-cash transactions & Operating Activities 2,344 2,614 3,726 3,723 3,724 3,79 3,757 3,769 3,78 3,829 3,839 36,47 Financing Funds Liquidated from Investment 2, 2, 5, 7, Total Financing 2, 2, 5, , TOTAL SOURCES OF CASH 4,344 4,614 8,726 3,723 3,724 3,79 3,757 3,769 3,78 3,829 3,839 43,47 USES OF CASH Capital Outlay (9,593) (6,579) (4,415) (45) (5) (5) (95) (55) (65) (45) (455) (15,499) Investing Activities Titan Hall (LT Note $ Mil.) (195) (25) (215) (255) (23) (245) (255) (265) (275) (285) (29) (2,52) Housing Authority LT Liability - Principal $2 Mil. (4) (5) (3) (8) Irvine Campus (LT Note $ 3.15 Mil.) Principal Pmt. (43) (445) (465) (49) (515) (54) (57) (6) (63) (66) (67) (5,585) Western State Deposit (L.T 2 Mil.) (8) (4) (4) (4) (2,) College Park (LT Note $ 22 Mil.) Principal Pmt. (845) (88) (925) (965) (1,1) (1,65) (1,115) (1,175) (1,23) (1,285) (1,34) (1,99) Other Uses of Cash Funding Post Retirement Obligation (75) - Total Other Uses of Cash (2,62) (2,83) (2,35) (2,11) (2,155) (1,85) (1,94) (2,4) (2,135) (2,23) (2,3) (21,895) TOTAL USES OF CASH Projections (12,213) (9,49) (6,72) (2,56) (2,655) (2,35) (2,89) (2,59) (2,785) (2,68) (2,755) NET SOURCES & (USES) OF CASH (7,869) (4,795) 2,6 1,163 1,69 1, , ,149 1,85 - Net Cash /Cash Equivalents at Beginning of Year 18,26 1,391 5,596 7,62 8,765 9,834 11,193 12,6 13,239 14,234 15,383 - Cash/cash Equivalent At Year End 1,391 5,596 7,62 8,765 9,834 11,193 12,6 13,239 14,234 15,383 16, CSUF ASC Budget Review Page 12

15 1 year Cash Flow Projections $24, $19, 16,468 $14, 13,239 14,234 15,383 1,391 11,193 12,6 $9, 9,834 7,62 8,765 $4, 5,596 -$1, CSUF ASC Budget Review Page 13

16 Cash flow projection The ASC s cash/cash equivalent, and investments, at the end of fiscal year is forecasted to be approximately $5.6 million. Part of that cash is internally restricted funds. These funds are designated to be used for the purposes assigned by the projects. These funds include Board designated gifts, IDC distributions, College of Extended University operations, Campus Programs operations, University deposited accounts, and other deposits held in custody for non-university entities. ASC has a fiduciary responsibility to maintain and process withdrawals upon request. Historically these funds have not had large withdrawals. As of June 3, 218, the balance of these funds is anticipated to be approximately $15 million which leaves the ASC with $161, of its own unrestricted funds. Long-term Cash Flow Projections $('s) Audited Financials Forecast Projected Projections Cash/cash Equivalent At Year End 1,391 5,596 7,62 8,765 9,834 11,193 12,6 13,239 14,234 15,383 16,468 Investment Activities 1,98 9,26 4,261 4,34 4,347 4,39 4,434 4,478 4,523 4,568 4,614 Total Cash and Investment 21,299 14,856 11,863 13,69 14,181 15,583 16,494 17,717 18,757 19,952 21,82 Gifts to University Designated From ASC Operations Board Designated Gifts & IDC Distributions 4,446 4,853 6,213 6,263 6,313 6,413 6,313 6,313 6,313 5,613 5,613 Deposit Held in Custody for Others 2,161 2,486 2,587 2,665 2,745 2,827 2,912 2,999 3,29 3,59 3,9 University Support Programs and UEE Accounts 8,11 7,356 8,25 8,333 8,416 8,5 8,585 8,671 8,758 8,845 8,934 Total University Designated Funds 14,78 14,695 17,5 17,26 17,473 17,74 17,81 17,983 18,1 17,517 17,636 ASC Unrestricted Fund Balance 6, (5,187) (4,191) (3,293) (2,157) (1,316) (266) 658 2,434 3,445 CSUF ASC Budget Review Page 14

17 Cash flow projection (continued) Total capital projects anticipated for fiscal year equal $6.7 million. This is primarily due to an unanticipated increase in the cost of the Titan Hall seismic work, and the necessary renovations to complete the project. As ASC continues to complete the project, and construction sums become due, ASC will have borrow from designated fund balances until we can accumulate enough cash to cover the expenses with ASC s unrestricted funds. We anticipate that ASC s unrestricted fund balance will be in a surplus position by 225. Cash & Investment vs. University Designated Funds 21,299 14,78 14,856 14,695 17,5 17,26 17,473 17,74 17,81 16,494 15,583 14,181 11,863 13,69 17,983 18,1 17,717 18,757 19,952 17,517 21,82 17,636 6,591 2,434 3, (266) (1,316) (2,157) (3,293) (4,191) (5,187) Total Cash and Investment Total University Designated Funds ASC Unrestricted Fund Balance CSUF ASC Budget Review Page 15

18 Administration CSUF ASC Budget Review Page 16

19 Administration Project Summary The ASC Administration Division provides oversight and support to enterprise operations, grants and contracts, campus programs and University Extended Education (UEE). The administration includes central administration, business and financial services, human resources, management information systems, post-award sponsored programs administration, and real property operations. The ASC Administration budget is presented as a consolidated budget. However, for internal controls, all administrative units have separate budgets. The proposed budget includes administrative fees of $2,119, charged to campus programs operations, UEE, post-award sponsored programs, real property operations, and enterprise operations. The proposed budget revenues are projected to remain relatively the same with a modest increase of $5, due to additional administrative fees charged. Operating expenses are expected to decline by ($9,) due to reduction in various administrative costs. Therefore, for the budget year, the administrative division has a budgeted deficit of ($1.4) million, which is offset by other operations net income. CSUF ASC Budget Review Page 17

20 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Administration Services Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Payroll Expense Salaries and Wages Benefits 2,49,35 721,898 2,631, ,218 2,887,48 757,55 2,632, ,441 Total Payroll Expense 3,212,248 3,312,916 3,645,3 3,38,594 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Supplies Depreciation Bank and Discount Charges Insurance Audit and Legal Repairs and Maintenance Merchant Supplies Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Employee Development Other Direct Costs Departmental Allocation Public Relations Equipment Rental/Expense ,118 1,737 31,84 34,257 24,992 15,773 7, , , , ,799 59, ,893 5,966 1,19,32 51,556 27, ,192 3,623 28,78 29,28 23,112 17,553 71,464 87,163 38, ,184 7,521 51, ,817 2,549 1,159,21 53,484 16, ,4 4,946 3,987 3,245 26,496 17,29 77,84 1, , 536, ,922 45,26 159,849 18,96 95,954 55,58 22, ,75 3,74 32,112 25,52 23,796 18,924 77, ,237 1,5 33, ,184 77,54 43, ,948 21, ,435 35,83 17,23 Total Operating Expenses 2,416,838 2,374,732 2,27,814 2,282,571 Commission Income Commissions Income 8, 8,241 8, 8,24 Total Commission Income 8, 8,241 8, 8,24 Other Income Unrealized Gain/Loss Investmnt Administrative Services Indirect Cost Recoveries Investment/Interest Income Other Income (794) 1,158,842 2,64,18 89,219 36,943 1,933,14 2,142, 23,886 54,67 1,857,648 2,36, 82,116 62,85 1,989,846 2,17,8 33,792 16,984 Total Other Income 3,348,228 4,153,57 4,38,569 4,21,63 Net Income / (Loss) (2,2,856) (1,454,35) (1,797,275) (1,372,295) CSUF ASC Budget Review Page 18

21 Real Property CSUF ASC Budget Review Page 19

22 Real Property Operations Project Summary Rental Income from the ASC s real property for FY is budgeted to increase 7.4% over projected FY Titan Hall s income is estimated for January 219. Expenses have increased due to the depreciation for Titan Hall and higher utilities throughout the properties. Also, a new Building Engineer is budgeted. All other revenues and expenditures are projected to remain relatively the same. College Park: College Park, being the largest user building, has the need for an additional Building Engineer to assist the Chief Engineer and staff for all ASC properties. By adding this engineer, we expect vendor service calls to diminish. In FY 17-18, old building equipment was replaced and more LED light bulbs were added, resulting in reduced electrical consumption. We were successful in adding College Park to Titan Hall s solar program. College Park will receive residual credits from SCE. 1 & 3 Banting: We have contracted with Generate-Evaporcool for clean-energy technology. This system will assist in keeping the buildings cool while reducing the most costly portions of the energy bills. Because this is an SCE program, the installation and maintenance of this system is at no cost to ASC and is contracted for 5 years. We anticipate 2-25% savings annually. CSUF ASC Budget Review Page 2

23 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Real Property Operation Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Payroll Expense Salaries and Wages Benefits 357,353 85, ,363 11, ,477 68,22 217,796 88,1 Total Payroll Expense 443,1 367,688 35,697 35,86 Operating Expenses Communications Taxes & Licenses Supplies Depreciation Bank and Discount Charges Insurance Debt Service & Interest Exp. Audit and Legal Repairs and Maintenance Professional Serv/Consultants Conference & Travel Utilities Other Direct Costs Public Relations Administrative Fee Equipment Rental/Expense 11,97 1,313 67,978 1,687,314 39, ,768 2,645,199 13,629 1,573, ,586 2, , , ,477 1,23 15, ,699 63,845 1,762,284 39, ,116 2,367,528 6,4 1,561,69 227,279 3,482 1,16,743 88, ,226 2,365 8,72 121,268 83,8 1,99,333 3, 186,536 2,367,855 17,4 1,547, ,924 2, ,96 88, 5 845,54 3,88 7,44 126,562 77, 2,74,632 39, ,152 2,278,552 5,4 1,553, ,672 3,24 1,137, , ,447 4,2 Total Operating Expenses 9,275,3 9,69,575 9,318,325 9,666,52 Commission Income Other Income Unrealized Gain/Loss Investmnt Investment/Interest Income Rental Income Other Income 934 2,835 9,893, ,818 6,233 2,553 1,1, , ,64 11,27, , ,64 1,942, ,572 Total Other Income 1,666,35 1,974,638 12,57,876 11,789,949 Net Income / (Loss) 948,21 1,537,375 2,433,85 1,817,641 CSUF ASC Budget Review Page 21

24 Enterprises CSUF ASC Budget Review Page 22

25 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Enterprises Total Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Sales Other Income 22,34,654 2,65,862 84,964 22,418,931 24,2 22,499,935 76,943 Total Sales 22,34,654 2,735,826 22,443,131 22,576,878 Cost of Goods Sold Cost of Sales 13,13,984 12,24,335 13,9,376 13,35,12 Total Cost of Goods Sold 13,13,984 12,24,335 13,9,376 13,35,12 Payroll Expense Salaries and Wages Benefits 4,314, ,684 4,327, ,55 4,418, ,67 4,51,152 98,617 Total Payroll Expense 5,144,63 5,155,39 5,282,778 5,49,769 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Commission & Royalty Supplies Depreciation Bank and Discount Charges Insurance Repairs and Maintenance Merchant Supplies Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Utilities Employee Development Other Direct Costs Public Relations Administrative Fee Equipment Rental/Expense 21,822 64,337 9, ,81 197,2 328, ,742 4,426 37, ,347 83, ,33 216,781 29, ,59 138,661 38,821 5, ,34 181,622 71,358 7, ,74 21,15 327, ,776 4, ,52 328,239 85, ,714 27,278 19, , ,592 28,246 13, ,55 72, ,475 7,242 14, ,546 17, ,747 58,1 47, , ,432 8,7 2,64 174,287 36,964 47,62 147,22 29,139 4,18 667,75 61,518 19,534 73,77 8,235 54, , , ,165 4, , ,711 77,6 19,199 29,151 13, , ,976 29,41 12, ,58 6,69 Total Operating Expenses 3,686,233 4,521,488 4,616,26 4,782,95 Commission Income Commissions Income 65,48 564, , ,96 Total Commission Income 65,48 564, , ,96 Other Income Administrative Services Rental Income Other Income ,51 389, , ,1 264, , , ,68 Total Other Income 673,31 86, ,834 87,26 CSUF ASC Budget Review Page 23

26 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Enterprises Total Prior FY Actual Forecast Current Year Budget Proposed Budget Net Income / (Loss) 1,423, , ,33 499,78 CSUF ASC Budget Review Page 24

27 Titan Shops CSUF ASC Budget Review Page 25

28 Titan Shops Project Summary Titan Shops revenue for FY is expected to increase by 8.9% over FY forecasts. This will be achieved through increased sales from the new website, general price increases, and better in-stock positions. Total operating expenses for Titan Shops (excluding the ASC Administrative Fee) are expected to increase by 3% over forecast; mainly due to added depreciation and maintenance costs for the NetSuite system and security cameras. The budget includes the required annual minimum wage increase that will go in affect January 1, 219. Overall, payroll costs represent 17.2% of store sales, which is a slight reduction of -.2% when compared to forecast. CSUF ASC Budget Review Page 26

29 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Titan Shops Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Sales 15,422,924 14,82,93 15,473,73 15,333,143 Total Sales 15,422,924 14,82,93 15,473,73 15,333,143 Cost of Goods Sold Cost of Sales 11,24,913 1,13,81 1,83,966 1,95,124 Total Cost of Goods Sold 11,24,913 1,13,81 1,83,966 1,95,124 Payroll Expense Salaries and Wages Benefits 2,149,21 399,132 2,8, ,955 2,33, ,484 2,225,27 416,846 Total Payroll Expense 2,548,153 2,457,32 2,418,342 2,641,873 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Commission & Royalty Supplies Depreciation Bank and Discount Charges Insurance Repairs and Maintenance Merchant Supplies Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Utilities Employee Development Other Direct Costs Public Relations Administrative Fee Equipment Rental/Expense 138,316 47,743 2,118 4,922 12,55 138, ,78 21, ,876 91,94 8,63 6, ,388 18, ,977 8,292 25,151 4,77 28, ,91 5,928 2,877 5,695 1,964 78, ,816 2, ,599 79,67 8,786 65,458 24,19 7,18 158,961 57,157 21,722 11, ,468 28, ,693 5,22 2,631 42,623 93,4 171,463 35,827 21,66 268,773 65,322 76,1 65, ,91 23,18 169,119 9,46 22,94 3, ,764 37, ,317 54,711 3,53 57,35 92, ,66 318,837 21,66 27,558 87,494 73,1 65, ,118 4,95 162,119 56,461 24,178 1,44 444,144 25,743 Total Operating Expenses 1,662,77 2,165,565 2,243,996 2,248,759 Commission Income Commissions Income 226,873 23, , ,25 Total Commission Income 226,873 23, , ,25 Other Income Administrative Services Rental Income Other Income ,644 25,38 145, , ,31 166,89 89,76 43,166 Total Other Income 389, ,17 325, ,242 Net Income / (Loss) 83,987 25, , ,879 CSUF ASC Budget Review Page 27

30 Dining Services CSUF ASC Budget Review Page 28

31 Dining Services Operations Project Summary Our Fiscal Year s Budget will continue to challenge our Team as we work to bring our campus several new concepts in addition to remodeling and refreshing some of our existing locations. Two of our newest additions going into the Food Court this Fall will be Hibachi-San (Japanese Poke Fare) and Pieology, the latter of which will be the first to be located on a University campus in the United States. Additional projects include remodeling of our Mihaylo Hall Starbucks location, as it celebrates its 1th year anniversary, and refreshing our Pollak Library Starbucks as we prepare to celebrate its 5th anniversary. Last, but not least, will be the addition of a Roscoe s Deli a favorite in downtown Fullerton to be added to our Student Union in late fall. With all these new Operations, student employment opportunities continue to grow as we become one of the largest employer of students at CSUF. As we grow, one of the challenges we will be facing involves the 9.% increase to minimum wage which comes half-way through our Fiscal Year. Having such an increase in costs will require significant marketing efforts to try to offset this expense. Utilization of the technology available to us will continue to be more and more paramount as we look to expand our mobile-order-mobile-pay business through our Apps. Knowing we have a lot of new projects on the horizon, and that we are continuing to grow both top line as well as bottom line results, is very exciting to our team as we look forward to an exciting year ahead. CSUF ASC Budget Review Page 29

32 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Dining Services Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Sales Other Income 6,611,73 6,568,769 84,964 6,945,858 24,2 7,166,792 76,943 Total Sales 6,611,73 6,653,733 6,97,58 7,243,735 Cost of Goods Sold Cost of Sales 2,79,71 2,191,254 2,286,41 2,399,978 Total Cost of Goods Sold 2,79,71 2,191,254 2,286,41 2,399,978 Payroll Expense Salaries and Wages Benefits 2,165,358 43,552 2,247,412 45,595 2,384,313 48,123 2,276, ,771 Total Payroll Expense 2,595,91 2,698,7 2,864,436 2,767,896 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Commission & Royalty Supplies Depreciation Bank and Discount Charges Insurance Repairs and Maintenance Merchant Supplies Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Utilities Employee Development Other Direct Costs Public Relations Administrative Fee Equipment Rental/Expense 63,56 16,594 7,61 37,888 94,515 19, ,962 19, , ,253 3,623 96,156 45,393 1, ,532 58,369 13,67 1, ,616 69,712 2,43 4, ,45 1, , ,96 19, ,93 248,632 4, ,256 66,88 12,48 195,168 65,435 6,524 1, ,82 43,55 75,782 2,22 11,73 485,923 77, , ,183 25, , ,11 4,6 135,428 2,196 13, ,51 56,76 6, ,941 24,32 75,217 19,59 4, ,45 93,46 338, ,328 18,931 24, ,217 4,5 124,771 67,33 9, ,534 67,515 4,863 1,77 277,914 34,866 Total Operating Expenses 2,23,526 2,355,923 2,372,21 2,533,336 Commission Income Commissions Income 423, ,64 369,219 48,656 Total Commission Income 423, ,64 369,219 48,656 Other Income Rental Income Other Income 98, ,479 1, ,325 15,96 18,683 1, ,442 Total Other Income 283, ,96 286, ,18 Net Income / (Loss) 619,744 29,95 12, ,199 CSUF ASC Budget Review Page 3

33 Auxiliary Services Consolidated Budget Details CSUF ASC Budget Review Page 31

34 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Auxiliary Services Detail Sales Non-serialized Rental Income Taxable Sales Nontaxable Sales Miscellaneous Sales Sales Discounts Interdepartment Sales/Transfer Current Prior FY Year Proposed Actual Forecast Budget Budget ,757,24 1,269,976 1,739,38 1,181,924 13,689,862 12,415,58 15,231,283 14,284,554 6,479,175 6,869,964 5,424,46 6,943,91 172,36 152,93 87,75 14,35 (63,713) (57,489) (63,87) (5,758) 84,964 24,2 76,943 Total Sales 22,34,654 2,735,826 22,443,131 22,576,878 Cost of Goods Sold 71 Cost of Sales 755 Non-serialized Rental Costs Total Cost of Goods Sold Payroll Expense 11,956,832 11,322,8 11,977,419 12,591,298 1,147, ,327 1,112, ,84 13,13,984 12,24,335 13,9,376 13,35,12 Salaries and Wages 8167 Salary/Wages - Part Time 651, ,589 1,95,226 2,274, Staff/Faculty Reimburse-Salary 16,69 164,96 15,187 15, CSU Additional Pay 4, 4, 3,996 3, Salary/Wages - Full Time 4,452,159 4,416,465 5,83,952 4,627, Reimbursed Wages-Allocation (1) 8325 Salary/Wage Student Assistant 1,567,776 1,479, ,57 168, OT/DT Student Assistant Wages 5,594 5,985 2,5 833 Salary/Wage Graduate Assistant 78,9 84,857 7,96 13, OT/DT Graduate Assistant Wage Part Time/Partial Benefits 131, ,189 19, OT/DT Misc Salary/Wage 16,674 15,685 3, 8567 OT/DT Full Time/Benefits 86,899 19,942 1,8 3, Benefits OT/DT Part Time/Benefits 7,83 11, Employer FICA Expense 41,152 48, , , Employer SUI Expense 64,39 27,84 35,524 34, Employer Workers Comp Expense 79,466 85, ,258 82, Employer Life Insurance Exp 1,173 1,318 12,75 34, Staff Benefit-LT Disability 4,99 7,113 1,45 9, Employer Dental Insurance Exp 49,69 38,769 41,692 45, Employer Health Insurance Exp 568,54 629, , , Employer Retirement Expense 352, , ,241 35, Employer Vision Care Expense 9,361 8,635 9,936 9, Postretirement Benefit 46,665 46,529 65,767 55, CSU Additional Pay Benefits Other Flex Benefits 6,36 6, Reimbursed Benefits/Taxes-Allc (1) HR ER Life Ins Expense HR ER Dental Expense , Health-Partial Benefits 21,924 14,722 3, Vacation Benefit Accrual 13,452 CSUF ASC Budget Review Page 32

35 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Auxiliary Services Detail Current Prior FY Year Proposed Actual Forecast Budget Budget Total Payroll Expense 8,799,411 8,835,913 9,233,55 9,96,169 Operating Expenses 811 Advertising and Promotion 821 Local Advertising 825 Promotional Items 8948 Promotion-Low Price Guarantee 8972 Promotion-Requisition Rewards Communications 8112 Telephone and Communication 8212 Postage and Delivery Taxes & Licenses 813 Taxes & Licenses 8284 Property Tax Expense Commission & Royalty 8115 Commission Expense 8194 Athletics Concession Expense 8195 Royalty 8216 Sports Complex Commission Exp Supplies 8121 Supplies-Expendable 8123 Printing 8146 Supplies-Office 822 Supplies-Linen 826 Supplies-Cleaning Depreciation 8122 Depreciation 8222 Intangible Amortization Bank and Discount Charges 818 Services-Bank Charges 8181 Credit Card Fees Insurance 8132 Insurance-General Debt Service & Interest Exp Debt Service Expense Audit and Legal 8138 Services-Financial/Audit 8139 Services-Legal Repairs and Maintenance 8142 Repairs & Maintenance 8152 Maintenance-Pest Control 8169 Maintenance-Contracts 8176 Maintenance-Vehicles 8242 Maintenance-Building 8378 Maintenance-HVAC Repair 8379 Services-Custodial 69,382 72,21 86,289 76,851 8,361 11,998 18,483 1,426 42,766 24,851 38,742 27,7 38,457 31,738 43,661 34,13 43,65 41,2 46, 43, 74,599 8,897 75,692 75,553 29,763 36,24 31,662 35,696 35,465 41,999 44,37 43,555 76,313 8,882 96,268 94, , ,64 131, ,722 23,913 3,652 3,93 3,55 246, ,24 38, ,123 58, , ,71 161,92 169,95 3,927 1,177 5,275 2,895 68,866 65,262 6,82 64,518 8,523 11,983 4,85 9,996 53,43 51,67 51,87 48,541 2,49,263 2,119,442 2,456,325 2,657,275 1,175 1, 77,443 7,758 72,3 74, , , ,53 583, , ,226 25, ,667 2,645,199 2,367,528 2,367,855 2,278,552 74,3 74,4 8,4 76,4 9,992 3,464 14,84 6, ,71 262,36 24,73 259,342 35,944 48,65 27,384 47, , , , ,398 4,261 3,73 3,53 3,958 47, , ,98 86,248 11, ,31 11,64 86, ,387 66, , ,513 CSUF ASC Budget Review Page 33

36 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Auxiliary Services Detail 838 Maintenance-Electrical Repair 8381 Maintenance-Elevator Repair 8382 Maintenance-Plumbing Repairs 8383 Maintenance-Landscape Repair 8384 Maintenance-Parking Lot Repair 8385 Maintenance-Fire Safety/Sprin Merchant Supplies 8125 Processing Fees 8192 Supplies-Merchant 8197 Supplies-Uniforms 8214 Resale Product and Inventory C 8215 Paper Supplies Donations & Scholarships 8157 Donations 8168 Student Scholarships & Awards Rentals 8153 Rental-Building/Space 823 Rental-Caps & Gowns Professional Serv/Consultants 8114 Services-Consultants 812 Services-Contracted 8188 Services-Temporary Help 822 Safety/Security 8238 Payroll Processing Conference & Travel 8116 Travel-Conference 8173 Travel 8174 Travel-Participants 8184 Parking Expense Utilities 8172 Trash Removal 8177 Utilities 8375 Electricity 8376 Gas/Heating Fuel 8377 Water/Sewer Employee Development 8144 Employee Development 817 Employee Text Incentive 8219 Retiree Health Expense Other Direct Costs 819 Spoilage 8111 Bad Debt Expense 8117 Dues, Membership, Subscription 8128 Cash Short/Over 8129 Proposal Costs 8133 Supplies-Instructional 8137 Reference Materials 8143 Materials 8147 Other Direct Costs Current Prior FY Year Proposed Actual Forecast Budget Budget ,377 37,459 28,4 35,145 45,216 51,837 46,226 46,538 59,724 33,561 38,35 41,36 199, , , ,954 28,63 17,78 17,78 67,21 53,327 63,31 37,418 49,493 1, ,272 1,5 133,89 11,88 9,31 111,753 11,27 11,855 8,75 8,765 53,431 53, 23,445 53,4 167,22 161, , ,189 95,57 82,79 68,7 67,918 43,4 41,2 46, 43, 599, ,898 72,824 71,383 14,268 16, 16, 16, 65,92 2,247 61, 3,5 169, ,32 154, , ,955 94,437 47,324 87, ,342 27,72 216,7 246, ,681 83,2 1,12 17,232 51,1 4,763 62,618 3,156 37,444 31,179 19,832 26, ,192 2,688 2,564 2,784 72,141 71,517 71,875 74,949 31,22 313, ,65 331, , ,25 795,2 954,85 71,291 52,518 75,4 75,5 51,47 62,233 59,5 74,45 18,85 25,592 19,753 45,95 134,13 117,14 144,216 18, , ,83 143,1 134,4 4, , ,65 1,8 1,8 1,8 31,978 36,616 31,113 37,674 7,81 3,82 3,317 2, ,452 1,45 1, , ,192 88,179 88, 925,5 CSUF ASC Budget Review Page 34

37 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Auxiliary Services Detail 8154 Publication Costs 824 Recruitment 8221 Restocking Fees Departmental Allocation 8198 Departmental Allocation 8199 IDC Allocation Public Relations 8118 Board Relations 814 Hospitality/Food & Beverages 8148 Public Relations Administrative Fee 815 Administrative Fee 816 Special Handling Charge 8283 Property Management Expense Equipment Rental/Expense 813 Equipment-Expendable 8155 Rental-Equipment 892 Equipment-Non Capitalized Tran Total Operating Expenses Current Prior FY Year Proposed Actual Forecast Budget Budget ,641 1,415 2,796 2,494 2,951 3,629 2,767 2,917 1,258 1,99,62 1,159,21 95, ,435 35,854 25,254 23,1 24, 649 3,39 3,235 3,64 2,225 38,622 33,313 2, ,551 1,438,776 1,513,29 1,547, ,926 3, 3, 99,772 84,443 74,338 69,8 11,121 11,992 13,21 12,779 12,447 15,378,74 15,965,795 16,25,345 16,731,168 Commissions Income 622 Maui Wowi 626 Vendor Commissions 629 Commissions Income 6227 Licensing Income 6228 First Class Vending Commission 6229 Pepsi Commission Income 623 Juice It Up Commission Income 6231 Kettle Masters Commission Incm 6232 AJs Espresso Commission Income 6233 Barcelona on the Go 6235 Misc. Mobile Food Trucks 6236 Spud Runners 6237 Two Garnachas Commission Incm 6238 Juice It Up Yogurt Commission Total Commission Income 2,259 1, 1,6 1,42 16, 11,6 18,85 12,95 32,13 32, , ,934 23,949 32,145 25,2 34,5 67,447 31,762 4, 27, 113,529 72,538 72, 8,4 76,98 73,515 74,35 81,494 3,652 3,438 6,35 3,437 67,247 62,918 45, 72, 23,689 23,621 24,25 24,64 12,3 11,185 9,399 12, ,733 3,45 73,48 644,67 668, ,146 Unrealized Gain/Loss Investment 65 Unrealized Gain/Loss on Invest 66 Contracted Services 68 Administrative Services Indirect Cost Recoveries 61 Indirect Cost-Federal 62 Indirect Cost-State 63 Indirect Cost-Profit Oriented 64 Indirect Cost-Fnd & Tax Exempt 14 6, ,4 41,742 41,742 41,742 1,112,851 1,891,362 1,815,96 1,948,14 1,473,458 1,5, 1,55, 1,55,4 426,49 46, 351, 45, 13,594 42, 3, 3, 15,557 14, 15, 14,4 CSUF ASC Budget Review Page 35

38 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Auxiliary Services Detail Investment/Interest Income Current Prior FY Year Proposed Actual Forecast Budget Budget Interest Income Dividend Income Investment Income/Dividends 63,853 12,55 44,556 12,636 13,889 23,796 28,21 4,2 Rental Income 618 Textbook Rental Income 621 Rental Income 6219 Parking Lease Income 625 Storage Rent Other Income 615 Pepsi Market Fund 617 EWR Admin Fee Income 627 Returned Check/Item Charge 6221 Shipping & Postage Charges 6225 Restocking Fee 6264 Maintenance Assessments 6265 Ground Lease Fees 644 Memberships 6471 Computer Repair Service 6472 Computer Repair Parts 6481 Rental Caps/Gowns/Hoods 65 Other Operating Income 659 Donations 692 Other Income 694 Gain/Loss on Sales of Assets 696 Rebates Total Other Income 135,344 93,91 117,921 6,36 9,929,559 1,126,185 11,34,372 1,945,15 95,582 11,262 95,652 11,268 16,734 16,735 16,74 16,74 18, 18, 18, 18, ,299 61,4 61,477 62,83 2,248 1,756 2,884 1, , ,36 187,2 187,2 114,42 115, ,5 115,5 8 29,18 32,183 49,79 35, ,132 1,69 3,472 25,777 29,3 27, 27, 565,42 649,58 545, , ,484 6,942 7,865 7,265 3,3 1,8 16, ,388 15, ,49 14,687,834 15,988,618 16,78,279 16,87,839 Net Income (Loss) 171,76 363,8 1,29, ,424 CSUF ASC Budget Review Page 36