Finance & Administration Committee. June 6, 2018

Transcription

1 Finance & Administration Committee June 6,

2 Agenda Call to Order/Roll/Declaration of Quorum Consent Agenda Vice President s Report Third Quarter Financial Report Tuition Policy Revision - HB 4141 FY University Operating Budget F&A Committee Work Plan 2

3 Consent Agenda Approval of Minutes April 4, 2018 Meeting 3

4 Vice President s Report 4

5 Vice President s Report F&A Committee Current Workplan Review internally prepared financial statements on a quarterly basis, including budget to actual performance Tuition and budget setting Multi-year enrollment forecasting Enterprise systems Research: costs and benefits Long-term tuition strategy 5

6 Vice President s Report Oregon Public Broadcasting PSU s Evolution: Updating Campus to Attract a New Generation of Students May 24,

7 Vice President s Report Capital Project Finance Update Project Status Remaining Philanthropy Need* Internal Loan Karl Miller Center Opened Sept On-Time & On-Budget Peter Stott Center Opened Apr On-Time & On-Budget $0 $2,379,828 remaining $0** $3,141,014 remaining Neuberger Hall Under Construction Completion: Aug $250,000 $6,530,000 est. postoccupancy Fourth & Montgomery In Design Completion: Nov $800,000 (GSE) $10,000,000 (SPH) TBD expected postoccupancy College of the Arts Lincoln Tower Completed $0 $101,301 remaining * Assumes pledge agreements are 100% collected, ** $1,415,215 paid from university reserves 7

8 3rd Quarter Preliminary Financial Reports 8

9 3rd Quarter Preliminary Financial Reports 4th Week Spring Enrollment Official numbers show: Total Headcount down -1.7%: UG -2.1%; GR -0.4% Total SCH down -1.2% as compared to the previous spring FY18 budget was built using declining enrollment and similar student mix as FY17 However, changes in the student mix, specifically, lower numbers of non-resident students are impacting net tuition revenue for FY18 9

10 3rd Quarter Preliminary Financial Reports Spring Preliminary Enrollment Student Credit Hours S17 EOT S17, WK4 S18, WK4 4th WK Change* # % # % # % # % Credit Hours Resident 191, , , Non-Resident 66, , , , ALL 257, , , ,

11 3rd Quarter Preliminary Financial Reports Budget to Actual Update Net tuition revenue $6.6 million down from budget due to reduction in undergraduate resident tuition rate increase, change in enrollment mix and higher tuition discounting State Appropriations up $10 million Other Payroll Expense savings due to budgeted versus actual rate charges (structural savings) - should see less savings in future years due to budget system upgrades for FY19 11

12 3rd Quarter Preliminary Financial Reports Total University Fiscal Year Quarter 3 Forecast Dollars in 000s E&G Designated Operations Service Departments Auxiliary Enterprises Restricted Funds Total All Funds Total All Funds Budget FY17 Q3 Actuals FY18 Q3 Actuals Revenue Student Fees $ 216,451 $ 3,103 - $ 43,980 - $ 263,534 $ 270,503 $ 255,683 $ 258,252 Government Resources & Allocations 95, , ,634 86,602 75,275 80,748 Gift Grants and Contracts 12,311 2, , , , , ,649 Internal Sales 4, ,547 6,719-14,290 14,055 9,509 10,601 Sales and Services Revenue 1,418 3,568 1,118 46, ,455 51,852 41,504 43,115 Investment/Debt/Debt Service 4, ,349 3,778 3,451 3,678 Other Revenue ,289 1,162 1, Total Revenue $ 335,167 $ 9,920 $ 3,672 $ 99,202 $ 126,774 $ 574,735 $ 567,206 $ 495,011 $ 506,631 Expense - - Salaries & Wages $171,191 $3,780 $1,381 $19,129 $28,219 $ 223,700 $225,649 $160,425 $163,812 OPE (fringes) 83,245 1, ,597 11, , ,543 72,608 77,365 Service & Supplies (net of transfers) 59,822 5,315 1,290 63,629 87, , , , ,890 Held for Risk Abatement 2,260-2,260 5, Depreciation ,801 9,878 9,786 7,384 7,337 Total Expense $ 316,518 $ 10,724 $ 3,332 $ 101,156 $ 126,774 $ 558,504 $ 566,841 $ 413,006 $ 424,404 Management Reserve Expenses $ 11,248 $ 11,248 - $ 5,953 $ 5,845 Net $ 7,401 $ (804) $ 340 $ (1,954) $ - $ 4,983 $ (4,634) $ 76,053 $ 76,381 12

13 3rd Quarter Preliminary Financial Reports Education & General Fund FY17 Actual FY18 Budget FY18 Q3 Forecast FY18 Budget to Q3 Forecast Dollars Percent FY17 Q3 Actuals FY18 Q3 Actuals Revenue Student Tuition and Fees $ 214,456 $ 222,553 $ 216,451 $ (6,101) -2.7% $ 210,228 $ 212,663 Government Resources & Allocations 88,837 85,463 95,495 10, % 74,421 79,894 Gifts Grants and Contracts 11,897 12,272 12, % 8,782 9,136 Internal Sales 4,557 4,884 4, % 3,300 3,612 Sales and Services Revenue 1,386 1,226 1, % 928 1,074 Investment/Debt/Debt Service 4,645 2,710 4,104 1, % 2,685 2,962 Other Revenue % Total Revenue $ 326,261 $ 329,447 $ 335,167 $ 5, % $ 300,723 $ 309,653 Expense Salaries & Wages $ 166,499 $ 172,906 $ 171,191 $ (1,715) -1.0% $ 121,281 $ 123,661 OPE (fringes) 77,427 87,548 83,245-4, % 56,569 60,319 Service & Supplies (net of transfers) 60,583 63,993 59,822-4, % 43,597 45,496 Held for Reserves/Risk Abatement - 5,000 2,260-2,740 Depreciation Total Expense $ 304,508 $ 329,447 $ 316,518 $ (12,929) -3.90% $ 221,447 $ 229,476 Management Reserve Expenses $ 9,387 $ 11,248 $ 11,248 $ 5,953 $ 5,845 Net $ 12,366 $ - $ 7,401 $ 7,401 $ 73,323 $ 74,331 13

14 Tuition Policy Revision In 2018, the Oregon Legislature passed House Bill 4141 amended the statute that outlines the process by which public universities set tuition and fees. Recommending minor amendments to our Tuition, Fees and Fines Policy to comply with HB

15 Break 15

16 FY Operating Budget 16

17 FY Operating Budget Looking Forward to FY19-20 Budget ( Biennium) Public University Support Fund Budget Request Requested minimum investment: +$130M ($867M total) Continue current services Stop shifting personnel costs to students Tuition increase below 5% Requested optimal investment: +$263M ($1B total) Restore per student funding to pre-recession levels Augment student support services Tuition increase below 3% Reality: state faces $1.3 - $1.4 billion shortfall Flat funding = tuition increase over 10% 17

18 FY Operating Budget Context Presenting a balanced budget Budget developed with PSU Performance Based Budgeting principles Base general fund expenditure budget determined by available resources + budget plus 3.46% by division Replenish reserves by budgeting a $4 million Operating Margin Not the final numbers yet - minor changes 18

19 Major Strategic Initiatives Funded Investment Type Recurring One-time Academic Affairs Growth Incentives $1.75M Marketing $150K Compliance $550K Centers of Excellence $1.5M Research Innovation Funding $500K Viking Pavilion $150K Research Support for Structural Deficit $500K Schnitzer Museum $100K Total $2.36M $2.75M 19

20 FY Operating Budget FY19 Budget Alignment with Strategic Plan Key Areas of Focus Helping students move efficiently and effectively towards graduation Prioritizing allocations for impact on advancing excellence in teaching & research Ensuring sufficient reserves 20

21 21

22 Planned expenses from Management Reserves for FY19 $500K Research Incentives $500K Research Structural Deficit $1.5M Centers & Institutes $600K Disability Resource Center $2.6M in Academic Affairs including $400K for AACSB accreditation, and $838K for VPs and Deans returning to teaching roles 22

23 Other structural deficits outside of general fund operations $350,000 Athletics $250,000 Viking Pavilion Both deficits represent the FY19 anticipated loss in operations Losses may continue beyond FY19 23

24 FY Operating Budget Total University Fiscal Year Budget Dollars in 000s E&G Designated Operations Service Departments Auxiliary Enterprises Restricted Funds Total All Funds Gross Tuition and Student Fees $243,464 $3.083 $ - $45,391 $ - $291,398 Tuition Remissions (23,200) (23,200) Government Resources & Allocations 98, , ,809 Gifts Grants and Contracts 12,430 2, , ,893 Internal Sales 4, ,203 7,771-14,952 Sales and Services Revenue 1,202 2,987 1,104 47,175-52,467 Investment/Debt/Debt Service 2, ,043 Other Revenue ,379 Total Revenue $340,755 $9,594 $3,308 $102,376 $134,148 $590,181 Salaries & Wages 179,412 3,254 1,076 21,257 28, ,832 OPE (fringes) 88,851 1, ,896 11, ,858 Services & Supplies (net of transfers) 74,839 3,418 1,469 61,643 94, ,418 Internal Administrative Overhead (6,347) 1,634-4, Depreciation ,669-9,726 Total Expense $336,755 $9,722 $3,031 $107,179 $134,148 $590,834 Hold for Central Reserves/Risk Abatement $4,000 $4,000 Net $ - $ (129) $ 277 $(4,802) $ - $ (4,654) 24

25 FY Operating Budget $590 million All Funds Revenue Sources 25

26 Change in Student Mix FY18 Estimated SCH FY19 Projected Change Undergraduate Resident 559, % Undergraduate Non-Resident 183, % Graduate Resident 110, % Graduate Non-Resident 35, % Total 889, % 26

27 FY Operating Budget All Funds Expenditure Uses $594.8 million By Natural Classification Education & General Expenditures are 58% of the All Funds Budget 27

28 FY Operating Budget All Funds Budget Dollars in 000's FY19 Budget Compared to Adopted Budget Q3 Forecast Budget FY18 Budget FY18 Q3 Forecast Dollars Percent Dollars Percent Gross Student Tuition and Fees $292,190 $286,362 $291,938 $ (252) -0.1% $5, % Tuition Remissions (21,687) (22,828) (23,300) (1,613) 7.4% (472) 2.1% Government Resources & Allocations 86,602 96,634 99,809 13, % 3, % Gift Grants and Contracts 139, , ,893 9, % 7, % Internal Sales 14,056 14,290 14, % % Sales and Services Revenue 51,852 52,455 52, % % Investment/Debt/Debt Service 3,777 5,349 4, % (1,307) -24.4% Other Revenue 1,162 1,289 1, % % Total Revenue $567,207 $574,738 $590,181 $22, % $15, % Salaries & Wages $225,650 $223,700 $233,832 $8, % $10, % OPE (fringes) 110, , ,858 1, % 6, % Service & Supplies (net of transfers) 220, , ,418 14, % 18, % Depreciation 9,787 9,878 9,726 (60) -0.6% (153) -1.5% Total Expense $566,842 $556,244 $590,834 23, % 34, % Held for Reserves $5,000 $2,260 $4,000 $(1,000) -20.0% $1,740 Management Reserve Expenses $11,248 $(11,248 ) Net $(4,635) $6,386 $(4,654) $(19) $(9,637) 28

29 FY Operating Budget Education & General (E&G) Dollars in 000's FY19 Budget Compared to Adopted Budget Q3 Forecast Budget FY18 Budget FY18 Q3 Forecast Dollars Percent Dollars Percent Gross Tuition and Student Fees $244,240 $239,279 $243,464 $ (776) -0.3% $4, % Tuition Remissions (21,687) (22,828) (23,300) (1,613) 7.4% (472) 2.1% Government Resources & Allocations 85,463 95,495 98,670 13, % 3, % Gift Grants and Contracts 12,272 12,311 12, % % Internal Sales 4,884 4,998 4, % (39) -0.8% Sales and Services Revenue 1,226 1,418 1,202 (24) -2.0% (216) -15.2% Investment/Debt/Debt Service 2,710 4,104 2, % (1,294) -31.5% Other Revenue % % Total Revenue $329,447 $335,167 $340,755 $11, % $5, % Salaries & Wages $172,906 $171,191 $179,412 $6, % $8, % OPE (fringes) 87,548 83,245 88,851 1, % 5, % Service & Supplies (net of transfers) 63,993 59,822 68,492 4, % % Depreciation Total Expense $324,447 $314,258 $336,755 $12, % $22, % Held for Reserves/Risk Abatement $5,000 $2,260 $4000 $ (1,000) $1,740 Management Reserve Expenses $11,248 $ (11,248) Net $ - $7,401 $ - $ - $ (7,401) 29

30 FY Operating Budget Total University Fiscal Year Budget Dollars in 000s E&G Designated Operations Service Departments Auxiliary Enterprises Restricted Funds Total All Funds Gross Tuition and Student Fees $243,464 $3.083 $ - $45,391 $ - $291,398 Tuition Remissions (23,200) (23,200) Government Resources & Allocations 98, , ,809 Gifts Grants and Contracts 12,430 2, , ,893 Internal Sales 4, ,203 7,771-14,952 Sales and Services Revenue 1,202 2,987 1,104 47,175-52,467 Investment/Debt/Debt Service 2, ,043 Other Revenue ,379 Total Revenue $340,755 $9,594 $3,308 $102,376 $134,148 $590,181 Salaries & Wages 179,412 3,254 1,076 21,257 28, ,832 OPE (fringes) 88,851 1, ,896 11, ,858 Services & Supplies (net of transfers) 74,839 3,418 1,469 61,643 94, ,418 Internal Administrative Overhead (6,347) 1,634-4, Depreciation ,669-9,726 Total Expense $336,755 $9,722 $3,031 $107,179 $134,148 $590,834 Hold for Central Reserves/Risk Abatement $4,000 $4,000 Net $ - $ (129) $ 277 $(4,802) $ - $ (4,654) 30

31 FY Operating Budget Resolution Approving FY Operating Budget 31

32 F&A Committee Work Plan 32

33 F&A Committee Work Plan F&A Committee Current Workplan Review internally prepared financial statements on a quarterly basis, including budget to actual performance Tuition and budget setting Multi-year enrollment forecasting Enterprise systems Research: costs and benefits Long-term tuition strategy 33

34 F&A Committee Work Plan F&A Committee Potential New Items Review of academic area budget allocations given shifting enrollment patterns Revisit the University Reserve Policy established by the board Overall university efficiency review Review of the overall budgeting process Resource alignment with student retention and graduation 34

35 University Place Hotel 35

36 University Place Hotel 36

37 University Place Hotel 37

38 University Place Hotel 38

39 University Place Hotel 39

40 University Place Hotel 40

41 University Place Hotel 41

42 Questions and Comments