Insert photo here and delete this box. Budget Review

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1 Insert photo here and delete this box Budget Review June 23, 216

2 TABLE OF CONTENTS SUMMARY PROPOSED BUDGET HIGHLIGHTS 2-3 CONSOLIDATED BUDGET COMPARISON SUMMARY TOTAL 4-5 SUMMARY OF STATEMENT OF ACTIVITY 6 CAPITAL OUTLAY 7 SUMMARY OF SOURCES AND USES OF CASH 8 LONG-TERM CASH FLOW PROJECTIONS 9-11 CONSOLIDATED BUDGET COMPERISON SUMMARY REPORTS ADMINISTRATION REAL PROPERTY OPERATIONS ENTERPRISES TOT TITAN SHOPS 2-22 DINING SERVICES OPERATIONS CONSOLIDATED BUDGET COMPARISON DETAILS 26-31

3 Summary CSUF ASC Budget 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 a difference 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 over the next fiscal year. The proposed operating revenue of $37.64 million, offset by expenditures of $37.18 million, generates a net surplus of approximately $45,. In addition, the proposed net income is projected to decline by 55% or ($468,), over the current year s forecast, mainly due to an increase in administrative costs. Total revenues for the Building and Enterprise Activities are projected to increase by 9%. Revenues By Division 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, Titan Building Dining Administr Shops Services ation FY Actual 16,267,951 1,43,26 6,666,4 $3,321,929 FY Forecast 15,824,61 1,261,378 6,594,181 $3,364,969 FY16-17 Proposed 15,919,379 11,351,375 6,835,586 $3,528,738 CSUF ASC Budget Page 2

5 Expenses are projected to increase in College Park West due to increased capital project costs. In Dining Services operations, there is an increase in costs due to a change from Carl s Jr. to Chick-fil-A. The facility will be under construction for six to seven months, and no revenue will be generated to offset costs such as salaries, utilities and other fixed costs. In addition, mandatory legislation increases minimum wage from $1 to $1.5 an hour, increasing operations costs. This is particularly relevant in dining operations as they have the highest percentage of minimum wage employees. Also incorporated is a corporate-wide employee merit pool of 3%. 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, Expenses By Division Titan Shops Building Dining Services Administration FY Actual 15,554,556 8,371,73 6,238,674 4,828,75 FY Forecast 15,154,183 8,865,691 6,196,676 4,91,957 FY16 17 Proposed 15,14,671 9,849,196 6,578,667 5,616,558 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 $3.5 million from the following activities: Operating surplus $ 45, Non-cash depreciation 2,388, Post retirement obligation (PRBO) 132, University line of credit repayment 543, Total cash generated: $ 3,513, Proposed cash usage of ($15.43) million is as follows: Proposed capital outlay requests ($12,57,) Net financing activities (1,87,) Funding post retirement obligation (75,) Gifts to the University (462,) Total uses of cash: ($ 15,439,) Sources of Cash Depreciat 68% Uses of Cash Capital Outlay 8% PRBO 4% Loan repaymen 15% Surplus 13% Investing Activities 12% Funding PRBO 5% Gift to University 3% CSUF ASC Budget Page 3

6 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 21,898,811 (122,562) 21,128,557 9, 21,89,183 21,444,81 91,9 Total Sales 21,776,249 21,218,557 21,89,183 21,535,981 Cost of Goods Sold Cost of Sales 13,443,476 12,939,725 13,47,74 12,855,225 Total Cost of Goods Sold 13,443,476 12,939,725 13,47,74 12,855,225 Payroll Expense Salaries and Wages Benefits 6,459,377 1,659,451 6,847,41 1,524,78 6,673,197 1,586,789 7,22,93 1,779,73 Total Payroll Expense 8,118,828 8,372,118 8,259,986 9,,3 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 226,93 19,6 448, , ,427 1,729, ,96 34,848 2,261,56 191,27 1,536, , , , ,146 77,831 1,2, ,95 492, ,115 48, ,869 99,43 22,594 15, , ,68 251,476 1,846, , ,155 2,426, ,585 1,64, ,865 17,78 38, ,744 89,64 1,195, ,486 92,666 87, 61, ,619 86,91 189,942 17,69 382, , ,959 1,775, , ,964 2,297,97 15,9 1,656,7 333, , , ,853 89,965 1,271, , , ,992 6, ,183 92,48 218,56 11, , ,42 264,882 2,388, , ,154 2,582, ,7 1,927,176 31, ,9 484, ,716 81,363 1,215,56 272,937 89, ,245 63,44 94,419 17,64 Total Operating Expenses 13,43,726 13,815,664 13,443,688 15,329,863 Commission Income Commissions Income 541, ,62 572, ,786 Total Commission Income 541, ,62 572, ,786 Administrative Services Indirect Cost Recoveries Program Income 1,2,997 1,786,323 3,74 1,252,43 1,824,12 1,324,92 1,868,4 1,341,738 1,941, CSUF ASC Budget 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 Commissions Income Investment/Interest Income Rental Income 66, ,46 9,791, ,253 76, 11,86 9,986, ,655 65, 15,8 9,273, ,397 85,2 15,74 1,89,72 1,157,741 Total 13,981,363 14,231,979 13,525,133 15,521,311 Net Income / (Loss) 1,36,96 917, , ,984 CSUF ASC Budget Page 5

8 General Fund: CSU Fullerton Auxiliary Services Corp. Summary of Proposed Budget Statement of Activity 16/17 REVENUES EXPENSES SURPLUS/(DEFI CI T) FY FY FY16-17 FY FY FY16-17 FY FY FY16-17 Actuals Forecast Proposed Actuals Forecast Proposed Actuals Forecast Proposed Administration $ 3,321,929 $ 3,364,969 $ 3,528,738 $ 4,828,75 $ 4,91,957 $ 5,616,558 $ (1,56,146) $ (1,545,988) $ (2,87,82) Building Operations 1,43,26 1,261,378 11,351,375 8,371,73 8,865,691 9,849,196 1,671,476 1,395,687 1,52,179 Total General Fund 13,365,135 13,626,347 14,88,113 13,199,85 13,776,648 15,465, ,33 (15,31) (585,641) Enterprises operations: Dining Services Description Food Court 1,925,445 1,879,29 1,897,88 1,871,456 1,819,2 1,882,35 53,989 6,288 15,53 Catering 829, , , ,51 793, ,353 (6,4) (56,329) (72,638) Concessions 256,38 236, , , , ,482 28,139 24,316 8,764 Carl's Jr. 78, , 775, , ,614 4,861 (71,458) (124,614) Langsdorf Hall 396, ,75 42,25 381, , ,749 14,923 17,413 6,51 Nutwood Café 364, , , ,51 375,214 41,3 (25,358) (1,725) (15,545) Vending/Carts/Rec Express 394, ,48 389,75 57,952 53,541 55, , , ,347 Starbucks - Pollak Library 986,366 1,11, 1,21,4 892,974 1,6,62 1,75,385 93,392 94,38 126,15 Starbucks - CBE 733, , 796, 752,14 755, ,872 (18,827) 1, Starbucks - TSU 346,9 381,355 (34,455) Chick-Fil-A 397,5 384,119 12,886 Total Dining Services 6,666,4 6,594,181 6,835,586 6,238,674 6,196,676 6,578, , ,55 256,919 Titan Shops Bookstore Titan Text & Publishing 5,76,558 5,113,994 5,93,685 4,685,112 4,128,52 4,148,35 1,75, , ,65 Titan Online 1,924,765 1,911,915 1,983,172 1,817,517 1,784,986 1,799,36 17, , ,136 General Merchandise 2,321,3 2,428,7 2,469,649 1,368,471 1,415,348 1,436,36 952,829 1,12,659 1,33,343 Titan Tech & Office 4,686,643 4,659,967 4,556,44 4,38,111 4,429,178 4,314,436 36,532 23, ,968 Convenience Stores 1,338,49 1,294,488 1,388,32 1,177,674 1,17,846 1,191,298 16, , ,734 Irvine Campus 288,83 33,74 344, , ,677 37,222 6,948 12,27 37,145 Operations (52,194) 85,535 84,7 1,843,789 1,96,628 1,944,338 (1,895,983) (1,821,93) (1,86,268) Total Titan Shops 16,267,951 15,824,61 15,919,379 15,554,556 15,154,183 15,14, ,395 67, ,78 Total Enterprises Operations 22,933,991 22,418,791 22,754,965 21,793,23 21,35,859 21,719,338 1,14,761 1,67,932 1,35,627 TOTAL SURPLUS (DEFICIT) $ 36,299,126 $ 36,45,138 $ 37,635,78 $ 34,993,35 $ 35,127,57 $ 37,185,92 $ 1,36,91 $ 917,631 $ 449,986 CSUF ASC Budget Page 6

9 Capital Outlay Dining Services Student Union - Starbucks 95, 85, Student Union- Pub 5, Total Dining Services $ 2,3, Bookstores Main Store Security Cameras 25, Main Store Employee lockers 11,5 Main Store Receiving Door replacement 2, Main Store Text floor lounge area remodel 8, Main Store POS System upgrade additional 5, Main Store Brief Stop - Wall Window Replacement 35, Total Bookstore 824,5 Total Enterprises Activities 3,124,5 Real Property Operations College Park West Library Tenant Improvements 2,45, Furniture 3, Sprinklers 4, IT 1, College Park West UEE Building Seismic 6, Sprinklers 8, HVAC 1,, Hardscape 4, 3,25, 2,8, Total Real Property Operations 6,5, Total Capital Requested - fiscal year $ 9,174,5 Prior Year Capital Budget Carry Forward Dining services 184, Bookstore 41,45 Building Fund 3,477,179 Total Capital Carry Forward $ 3,72,224 Total FY15/16 Proposed Capital and Carry Forward $ 12,876,724 CSUF ASC Budget Page 7

10 SUMMARY OF SOURCES AND USES OF CASH Prior F.Y. Actual 214/15 Forecast Fiscal Year 215/16 Proposed Budget 216/17 SOURCES OF CASH OPERATING ACTIVITIES General Fund $ 1,364, $ (1,546,) $ (2,88,) Dining Services 427, 398, 257, Bookstores 713, (2,88) 779, Real Property - 2,37, 1,396, 1,52, University Support Programs 311, - - University Extended Ed. UEE 741, - - Temporary Restricted (3,) - - TOTAL CASH FROM OPERATING ACTIVITIES 5,896, 245,912 45, NON-CASH TRANSACTIONS Depreciation 1,73, 1,847, 2,388, Post retirement benefit (4,633,) 15, 132, Other cash & cash equiv. provided by Operation. 6,525, (1,5,) - TOTAL NON-CASH TRANSACTIONS 3,622, 452, 2,52, FINANCING Photo-Voltaic Installation Line of Credit 4.8 Mil 543, 543, 543, TOTAL FINANCING 543, 543, 543, TOTAL SOURCES OF CASH $ 1,61, $ 1,24,912 $ 3,513, USES OF CASH CAPITAL OUTLAY Bookstores 12, 85, 825, Dining Services 65, 25, 2,3, College Park West Seismic work 1,3, 6, College Park West Sprinklers/HVAC/Hardscape/ Furniture - - 3,, College Park West Tenant Improvements - 685, 2,45, College Park (CSU Fullerton Signage) - 1, Irvine Banting Seismic and TI 2,, 2,625, College Park Elevator 17, 77, - El Dorado Ranch - 15, Prior Year Capital Budget Carry Forward - - 3,72, TOTAL CAPITAL OUTLAY 2,337, 5,83, 12,877, INVESTING ACTIVITIES - Pay down Heights $2 Mil. 4, 4, 4, College Park(LT Note $ 22 Mil.) Principal pmt. 77, 8, 845, College Park W.(LT Note $ 13.5 Mil.) Principal pmt , Irvine Campus (LT Note $ 3.15 Mil.) Principal pmt. 795, 42, 43, TOTAL INVESTING ACTIVITIES $ 1,965, $ 1,62, $ 1,87, OTHER USES OF CASH Funding Post Retirement Obligation 75, 75, 75, Elk Land Lease Settlement 1,662, * Gift to University 325, 585, 462, TOTAL OTHER USES OF CASH 1,75, 2,997, 1,212, TOTAL USES OF CASH 5,377, 1,447, 15,959, NET SOURCES & (USES) OF CASH 4,684, (9,26,88) (12,446,) Net Cash & cash equivalents at beginning of year 2,265, 24,949, 15,742,912 Cash and cash equivalent at year end $ 24,949, $ 15,742,912 $ 3,296,912 CSUF ASC Budget Page 8

11 Long-term Cash Flow Projections CSUF ASC Budget Page 9

12 Cal State Fullerton Auxiliary Services Long-term Cash Flow Projections $('s) Audited Forecast Proposed Financials Projections SOURCES OF CASH Operating Activities General Fund 1,364 (1,546) (2,88) (2,19) (2,13) (2,151) (2,173) (2,195) (2,216) (2,239) (2,261) (21,17) Bookstores ,968 Dining Services ,228 Real Property 2,37 1,396 1,52 2,394 2,418 2,49 2,515 2,54 2,566 2,643 2,669 23,132 University Support Programs University Extended Ed. UEE Temporary Restricted (3) - Total Cash from Operating Activities 5, ,53 1,518 1,581 1,597 1,613 1,629 1,697 1,714 14,221 Non-cash transactions Depreciation 1,73 1,847 2,388 2,3 2,323 2,346 2,37 2,393 2,417 2,441 2,466 23,292 Post retirement benefit (4,633) ,681 Other cash & cash equiv. provided by Operation. 6,525 (1,5) (1,5) Total Non-cash transactions 3, ,52 2,442 2,48 2,523 2,552 2,581 2,611 2,641 2,671 23,473 Total non-cash transactions & Operating Activities 9,518 1,37 2,97 3,945 3,998 4,15 4,149 4,194 4,24 4,338 4,385 37,694 Financing Photo-Voltaic Installation Line of Credit 4.8 Mil ,86 Total Financing ,86 TOTAL SOURCES OF CASH 1,61 1,913 3,513 3,945 3,998 4,15 4,149 4,194 4,24 4,338 4,385 38,78 USES OF CASH Capital Outlay (2,337) (5,83) (12,877) (45) (455) (459) (464) (468) (473) (478) (482) (22,436) Investing Activities College Park, C.P. (LT Note $ Mil.) - - (195) (2) (25) (215) (225) (23) (245) (255) (265) (2,35) U.H. LT liability - Principal $2 Mil. (4) (4) - (4) (4) (3) (1,5) - Irvine Campus (LT Note $ 3.15 Mil.) Principal pmt. (795) (42) (43) (445) (465) (49) (515) (54) (57) (6) (63) (5,15) - College Park (LT Note $ 22 Mil.) Principal pmt. (77) (8) (845) (88) (925) (965) (1,1) (1,65) (1,115) (1,175) (1,23) (1,1) Other Uses of Cash Funding Post retirement obligation (75) (75) (75) (75) (75) (3,) Elk Land lease settlement - (1,662) (1,662) Total Other Uses of Cash (2,715) (4,32) (2,62) (2,675) (2,645) (1,67) (1,75) (1,835) (1,93) (2,3) (2,125) (23,312) TOTAL USES OF CASH (5,52) (9,862) (15,497) (3,125) (3,1) (2,129) (2,214) (2,33) (2,43) (2,58) (2,67) (45,748) Gift allocated to University designated account (325) (585) (44) (88) (841) (1,217) (1,2) (1,18) (1,155) (1,154) (1,13) (9,71) NET SOURCES & (USES) OF CASH 4,684 (8,534) (12,424) Net Cash & cash equivalents at beginning of yea 2,265 24,949 16,415 3,991 4,3 4,6 4,818 5,554 6,266 6,948 7,624 - Cash and cash equivalent at year end 24,949 16,415 3,991 4,3 4,6 4,818 5,554 6,266 6,948 7,624 8,272 - CSUF ASC Budget Page 1

13 1 year Cash Flow Projections ,949 $22, $17, 16,415 $12, $7, 3,991 4,3 4,6 4,818 5,554 6,266 6,948 7,624 8,272 $2, CSUF ASC Budget Page 11

14 Administration CSUF ASC Budget Page 12

15 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 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 charged to campus programs operations, UEE, post-award sponsored programs and real property operations, though no administrative fees are charged to the enterprise activities (bookstore and dining services). Therefore, costs of over $2 million are absorbed by Administration. The proposed budget revenues are projected to increase by 5% due to additional administrative fees charged to properties revenues, as well as IDC collected. The administrative division s expenses (net of revenue) are budgeted to increase by 35%, or $542,. Wages and Salary has incurred an increase of $23, due to a request for 3 full-time benefited positions: (1) $9, for a Marketing Director; (2) $36, for Accounts Payable; and (3) $29, for a receptionist. In addition, approximately $75, is budgeted for a 3% merit increase. Operating expenses are expected to increase as follows: (1) $16, in IDC contributions due to anticipation of increased grants; (2) $85, in rental expenses as the administrative offices will be occupying a larger space; (3) $7, in Professional Services to pay for various consultants to improve productivity in IT and HR. CSUF ASC Budget Page 13

16 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Auxiliary Services Administration Prior FY Actual Forecast Current Year Budget Proposed Budget Sales Payroll Expense Salaries and Wages Benefits 2,328,6 777,616 2,476, ,782 2,492, ,596 2,76,15 836,852 Total Payroll Expense 3,16,216 3,15,73 3,137,535 3,543,2 Operating Expenses Advertising & Promotion Communications Taxes & Licenses Supplies Depreciation Bank and Discount Charges Insurance Debt Service & Interest Exp. Audit and Legal Repairs and Maintenance Donations & Scholarships Rentals Professional Serv/Consultants Conference & Travel Employee Development Other Direct Costs Departmental Allocation Public Relations Equipment Rental/Expense 3,21 3,324 2,76 29,64 36,38 28,497 2, ,81 9,945 29, ,532 16,67 44, ,799 (217,574) 968,115 39,5 32, ,118 3,135 25,338 36,38 3,55 19,319 98,389 91,24 6, , ,771 64,91 122,43 (2,729) 87, 43,712 21,661 2,925 3,52 4,14 3,24 35,794 27,66 21,516 3,5 18,9 114,491 2,1 215, ,577 56,48 14,96 17,47 781,992 39,91 19, ,437 3,48 27,965 4,925 27,5 19,788 66, 9,838 55,3 3,84 174,216 45,75 133,242 22,55 966,245 46,85 21,3 Total Operating Expenses 1,721,859 1,76,884 1,838,134 2,73,556 Commission Income Commissions Income 8, 8, 12, 8, Total Commission Income 8, 8, 12, 8, Administrative Services Indirect Cost Recoveries Investment/Interest Income 1,2,997 1,786, ,577 85,32 1,252,43 1,824,12 96, ,83 1,324,92 1,868,4 11, 45, 1,341,738 1,941, 11, 65, Total 3,241,929 3,284,969 3,338,492 3,448,738 Net Income/(Loss) (1,56,151) (1,545,988) (1,535,175) (2,87,821) CSUF ASC Budget Page 14

17 Real Property CSUF ASC Budget Page 15

18 Real Property Operations Project Summary Rental income from the ASC s real property holdings is budgeted to increase 9% due to an increase in Irvine Banting 1 s rental income. In addition, while expenses are projected to increase due to an increase in costs for College Park West (see below), all other buildings revenues and expenditures are projected to remain relatively the same. Irvine 1 Banting: We have completed the seismic retrofit of the property and prepared approximately 6, square feet of the property for lease to a new tenant. Western State College of the Law moved into its 6, square foot space on March 15, 216. No additional capital expenditures are requested. College Park West: We were able to begin the tenant improvements in the library once Western State vacated the property on March 15, 216 as the building required no seismic retrofit. The tenant improvements are much more comprehensive than originally thought as the HVAC needed to be replaced, the bathrooms needed a complete retrofit, the lighting and electrical system needed to conform to Title 24 requirements, the State Fire Marshal required sprinklers, and several other unforeseen costs. The additional costs total $2,95,. We are also buying new furniture for the building at a cost of $3,. The seismic retrofit for the four floor building began in the last fiscal quarter of , commencing with the demolition of the interior. The actual retrofit will begin in June, 216, and should be completed by November 1, 216 and the cost has increased by $6,. The mechanical improvements include a new HVAC system, a sprinkler system, and new bathrooms and should be completed by January 1, 217 at a cost of $2,2,. During the construction process, the property will not be earning income. An additional $6,5, capital request is needed to complete this project. The total project cost for College Park West is $1,75,. CSUF ASC Budget Page 16

19 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Sales Total Sales Payroll Expense Salaries and Wages Benefits Total Payroll Expense 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 Total Operating Expenses Commission Income Investment/Interest Income Rental Income Total Real Property Operation Prior FY Actual ,34 24,34 224,794 44, ,536 14, ,114 55,89 1,286,7 18,296 23,425 2,261,56 74,397 1,138,617 35,778 2,449 85,53 685, ,369 8,243 8,12,194 6,469 9,479, ,899 1,18,92 Forecast ,71 7, ,144 11,983 35,546 52,943 1,426,79 25,729 16,755 2,426,765 94,196 1,195, ,25 2,34 85, , ,619 2,715 8,489,547 4,615 9,643, ,111 1,261,378 Current Year Budget ,461 46,465 29,926 12,6 369,253 45,74 1,342,89 12,24 218,976 2,293,597 42, 1,238,723 26,591 2,34 819,7 771,2 688,183 3,42 8,12,787 4,8 8,92,12 536,654 9,443,466 Proposed Budget ,65 8, ,889 12,12 32,551 57,1 1,854,56 25, 162,264 2,582,284 62,7 1,532, ,822 2,34 818, , ,419 3,78 9,449,37 4,74 1,547,73 798,932 11,351,375 Net Income / (Loss) 1,671,476 1,395,687 1,31,755 1,52,178 CSUF ASC Budget Page 17

20 Enterprises CSUF ASC Budget Page 18

21 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Sales Sales Total Sales Cost of Goods Sold Cost of Sales Total Cost of Goods Sold Payroll Expense Salaries and Wages Benefits Total Payroll Expense 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 Total Operating Expenses Commission Income Commissions Income Total Commission Income Program Income Commissions Income Rental Income Total Enterprises Total Prior FY Actual ,898,811 (146,866) 21,751,945 13,443,476 13,443,476 3,95, ,93 4,743,76 223,72 64,33 12, , ,698 46, ,167 53,451 36,74 357, ,67 16,39 187,761 3, , ,296 24,478 9, ,349 3,66, , ,514 3,74 66, , ,322 72,532 Forecast ,128,557 9, 21,218,557 12,939,725 12,939,725 4,65,49 78,492 4,845,91 219,894 62,897 1, ,68 173, , ,164 42,81 317, ,786 11,41 164, ,948 22, , ,56 36,23 17,31 61,715 3,565, ,62 514,62 76, 343, , ,632 Current Year Budget ,89,183 21,89,183 13,47,74 13,47,74 3,935, ,728 4,831, ,17 64,489 9, , ,15 396,56 499,923 56,472 33, , , ,64 142,685 31, , ,418 28,549 2,92 1, 69,7 3,484,767 47,176 47,176 65, 371,432 36, ,175 Proposed Budget ,444,81 91,9 21,535,981 12,855,225 12,855,225 4,195, ,937 5,57, ,681 59,417 1,71 463,42 179,97 493, ,216 43,12 34,159 31,453 86,6 183, ,678 33,39 397,63 139,695 23,293 16,179 81,984 3,87, 497, ,786 85,2 342, ,89 721,198 Net Income / (Loss) 1,14,764 1,67,932 1,298,553 1,35,627 CSUF ASC Budget Page 19

22 Titan Shops CSUF ASC Budget Page 2

23 Titan Shops Project Summary Titan Shops revenue for FY is expected to remain relatively flat from the FY forecast, as declines are expected in used book sales along with continued fluctuations in campus technology sales. Over 5% of all technology sales are generated by institutional purchases, making it difficult to predict sales volume from year to year. The overall Cost of Goods Sold (percentage of revenue) is budgeted to decrease to 7.6%, as the store will implement small retail price increases across most categories to help off-set increased operating costs. Total expenses for Titan Shops are expected to increase by 5%, due to increased depreciation, increased credit card processing fees, and increased payroll expenses for the required minimum wage adjustment (from $1. to $1.5, effective January 1, 217, which is the third increase to minimum wage in since 214). The requested capital expenditure proposed for FY designates $25, for an improved store security camera system, which will tie into the UPD system, $35, to replace the wall of the Brief convenience store that needs to be structurally repaired, with another $39,5 for store and operational improvements (replace employee lockers, repair and replace receiving doors and frames, and create a student lounge area in the course materials department). The prior approval of requested capital for a new Point-of-Sale and Inventory Management System $5,, remains in the current capital request. CSUF ASC Budget Page 21

24 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Sales Sales Total Sales Cost of Goods Sold Cost of Sales Total Cost of Goods Sold Payroll Expense Salaries and Wages Benefits Total Payroll Expense 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 Equipment Rental/Expense Total Operating Expenses Commission Income Commissions Income Total Commission Income Rental Income Total Prior FY Actual ,831,39 (146,866) 15,684,443 11,434,151 11,434,151 1,928, ,74 2,342, ,676 48,441 3,127 42,513 8,499 16, ,977 24,99 16,514 93, ,819 64, ,19 18,255 18,869 81,291 13,192 8,523 3,183 1,777, ,23 218,23 28, , ,35 Titan Shops Forecast ,211,218 15,211,218 11,3,71 11,3,71 2,5, ,572 2,436, ,976 45,312 2,813 49,21 9,865 14, ,499 22, ,52 67,166 94,751 6, ,782 15, ,815 9,831 27,737 17,76 27,113 1,714,128 25,667 25, , , ,725 Current Year Budget ,63,34 15,63,34 11,364,919 11,364,919 2,8, ,414 2,434,96 126,665 47,469 3,298 45,863 79, , ,28 24, ,625 63,869 16,96 54,92 17,465 19,378 27,96 82,83 24,489 2,167 3,6 1,639, ,18 226,18 268, ,62 393,474 Proposed Budget ,292,676 15,292,676 1,796,3 1,796,3 2,93,78 435,231 2,528,39 155,929 41,791 2,814 51,932 93, ,29 322,649 23, ,278 63,676 79,85 62, ,398 24, ,358 95,35 16,76 16,179 47,614 1,816, , ,621 24, , ,82 Net Income / (Loss) 713,396 67,427 81, ,78 CSUF ASC Budget Page 22

25 Dining Services CSUF ASC Budget Page 23

26 Dining Services Operations Project Summary In January 217, the new hourly minimum wage will increase to $1.5, working its way to $15. by 222. As we work to meet the increase in payroll expenses, we need to put focus on increasing top line sales to help offset the impact of this additional expense. During this year s FY budget process, emphasis on overall performance of existing operations and what could be done differently going forward was a clear priority. Of all of the current dining services operations, Starbucks with its expanded menu offerings, has continued to show consistent growth in revenue as well as net income. Not surprisingly, this year s budget includes the addition of a third Starbucks to be located within the newly-expanded Titan Student Union, a natural fit for this venue creating a place for students to gather while performing at a level that has proven itself a financial success. Looking at our other venues it also was also evident that Carl s Jr. has continued to reflect lackluster sales resulting in marginal net income. The Carl s Jr. space being very unique as compared with our other concepts due to its stand-alone building, kitchen, restrooms, etc. Going through our recent campus dining survey it was not surprising to see a concept score a #1 ranking with our students, staff, and faculty Chick-fil-A. Steps are currently underway to move away from Carl s Jr. and put in place by Spring 217 this new concept that will bring a new level of excitement to our campus dining as well as community. Going forward, we will continue to keep a close look at existing concepts and as these agreements come to term, we will work to make sure we have the best variety of offerings in this very competitive environment of fast casual dining. The request capital expenditure proposed for new concepts is $2.3 million. CSUF ASC Budget Page 24

27 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Comparison Summary For Proposed Budget Year Sales Sales Total Sales Cost of Goods Sold Cost of Sales Total Cost of Goods Sold Payroll Expense Salaries and Wages Benefits Total Payroll Expense 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 Total Operating Expenses Commission Income Commissions Income Total Commission Income Program Income Commissions Income Rental Income Total Dining Services Prior FY Actual ,67,52 6,67,52 2,9,325 2,9,325 1,977, ,389 2,4,658 65,396 15,862 9, ,762 87, ,149 29,19 28, ,19 264,24 12,851 95,626 24,652 12, ,577 41,5 11, ,166 1,828, , ,311 3,74 66,358 13, ,84 355,227 Forecast ,917,339 9, 6,7,339 1,936,654 1,936,654 2,14, ,92 2,48,917 62,918 17,585 7, ,479 82,33 242, ,665 19,36 149, ,62 6,65 14,251 29,166 7,2 25,43 38,225 8, ,62 1,851,15 263, ,935 76, 13,32 143, ,97 Current Year Budget ,178,843 6,178,843 2,42,785 2,42,785 1,927,35 469,314 2,396,619 6,352 17,2 5, ,932 84,444 23,577 24,715 31,56 168, ,364 5,425 13,512 35,22 11,83 245,128 3,335 4, , 39,64 1,845, , ,996 65, 13,2 181, ,71 Proposed Budget ,151,45 91,9 6,243,35 2,59,222 2,59,222 2,12,97 426,76 2,528,83 61,752 17,626 7, ,488 86,53 263, ,567 19,59 167, ,777 6,75 121,144 28,28 9,18 21,75 44,66 6,587 34,37 1,99, , ,165 85,2 11,52 139, ,116 Net Income / (Loss) 427, ,55 487, ,919 CSUF ASC Budget Page 25

28 Auxiliary Services Consolidated budget Details CSUF ASC Budget Page 26

29 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Details Auxiliary Services Total Current Prior FY Year Proposed Actual Forecast Budget Budget Sales 655 Non-serialized Rental Income 2,11,156 1,757,478 1,551,553 1,851, Taxable Sales 14,194,73 13,689,23 15,639,661 14,588, Nontaxable Sales 5,612,836 5,593,317 4,522,933 4,91, Miscellaneous Sales 157,23 149, 16,65 152,9 645 Sales Discounts -77,87-6,261-65,614-49, Interdepartment Sales/Transfer -122,562 9, 91,9 Total Sales 21,776,249 21,218,557 21,89,183 21,535,981 Cost of Goods Sold 71 Cost of Sales 12,216,249 11,911,853 13,47,74 11,756, Non-serialized Rental Costs 1,227,227 1,27,872 1,99,84 Total Cost of Goods Sold 13,443,476 12,939,725 13,47,74 12,855,225 Payroll Expense Salaries and Wages 8167 Salary/Wages - Part Time 597,317 1,274,644 1,987,44 1,78, Staff/Faculty Reimburse-Salary 149, , , , CSU Additional Pay 4, 4,1 4, Salary/Wages - Full Time 4,171,195 4,351,843 4,46,761 4,766, Salary/Wage Student Assistant 1,22,37 745, , OT/DT Student Assistant Wages 6,599 53, Salary/Wage Graduate Assistant 15,956 74, OT/DT Graduate Assistant Wage Part Time/Partial Benefits 113,29 116,55 124,89 126, OT/DT Misc Salary/Wage 15,991 12, OT/DT Full Time/Benefits 72,646 6,663 3,445 5, OT/DT Part Time/Benefits 1,87 1,8 Benefits 899 Misc Benefits/Accrual 65, Employer FICA Expense 389, , ,557 43, Employer SUI Expense 25,589 26,825 39,758 35, Employer Workers Comp Expense 81,521 8,327 92,46 135, Employer Life Insurance Exp 9,929 9,793 9,866 1, Staff Benefit-LT Disability 6,682 7,672 6,936 8, Employer Dental Insurance Exp 34,268 43,117 34,985 35, Employer Health Insurance Exp 626,79 543, ,46 62, Employer Retirement Expense 329, , , , Employer Vision Care Expense 16,276 9,651 15,445 12, Postretirement Benefit 48,989 49,66 68,846 7, CSU Additional Pay Benefits Other Flex Benefits 5,985 6,21 6, 5, HR ER Life Ins Expense HR ER Dental Expense Health-Partial Benefits 2,69 2, , 837 Vacation Benefit Accrual 63,562 Total Payroll Expense 8,118,828 8,372,118 8,259,986 9,,3 CSUF ASC Budget Page 27

30 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Details Auxiliary Services Total Current Prior FY Year Proposed Actual Forecast Budget Budget Operating Expenses Advertising & Promotion 811 Advertising and Promotion 8,516 72,888 67,988 7, Local Advertising 19,612 14,45 17,752 15, Promotional Items 42,514 41,258 2,157 4, Promotion-Low Price Guarantee 38,61 5,898 41,745 5, Promotion-Requisition Rewards 44,85 41,1 42,3 42, Communications 8112 Telephone and Communication 82,777 78,545 87,88 79, Postage and Delivery 26,283 27,453 19,81 22,226 Taxes & Licenses 813 Taxes & Licenses 46,43 35,783 38,869 37, Property Tax Expense 42, , , ,151 Commission & Royalty 8115 Commission Expense 134, ,57 133,25 193, Athletics Concession Expense 15,399 24,156 18, 25, Royalty 27, ,785 19,77 229, Sports Complex Commission Exp 15,169 15,323 Supplies 8121 Supplies-Expendable 14,84 137, ,42 149, Printing 6,934 11,6 14,123 12, Supplies-Office 52,215 49,141 46,697 47, Supplies-Linen 8,986 8,7 8,735 8,7 826 Supplies-Cleaning 44,28 44,775 42,984 46,31 Depreciation 8122 Depreciation 1,727,841 1,845,821 1,773,543 2,387, Intangible Amortization 1,7 1, 1,71 1,8 Bank and Discount Charges 818 Services-Bank Charges 64,72 71,74 58,599 69, Credit Card Fees 525, , , ,827 Insurance 8132 Insurance-General 34, , , ,154 Debt Service & Interest Exp Interest Expense 39,116 39,296 82, Debt Service Expense 1,952,444 2,387,469 2,214,53 2,582,284 Audit and Legal 8138 Services-Financial/Audit 11,568 74,45 13,5 65, Services-Legal 8, ,135 47,4 63,3 Repairs and Maintenance 7416 Elevators-Misc-Permit 1, Repairs & Maintenance 219, ,3 298, , Maintenance-Pest Control 22,336 26,959 23,118 24, Maintenance-Contracts 26,71 273, , , Maintenance-Vehicles 3,597 2,654 5,425 2, Maintenance-Building 62,82 149,9 74,4 93, Maintenance-HVAC Repair 226,15 144, ,497 7, Services-Custodial 412,34 432, ,26 463, Maintenance-Electrical Repair 52,765 43,4 22,2 35,265 CSUF ASC Budget Page 28

31 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Details Auxiliary Services Total Current Prior FY Year Proposed Actual Forecast Budget Budget Maintenance-Elevator Repair 31,768 47,639 29,4 45, Maintenance-Plumbing Repairs 27,259 33,498 35,78 39, Maintenance-Landscape Repair 164, ,79 123, , Maintenance-Parking Lot Repair 12,821 13,348 14,56 12, Maintenance-Fire Safety/Sprin 38,79 36,917 43,219 34,449 Merchant Supplies 8125 Processing Fees Fees 8192 Supplies-Merchant 113,826 88,224 9,445 87, Supplies-Uniforms 9,321 9,782 11,46 9, Resale Product and Inventory C 63,218 32,14 65,2 47, Paper Supplies 171, ,61 166, ,387 Donations & Scholarships 8157 Donations 11,814 66,68 9,185 99, Student Scholarships & Awards 44,55 41,1 42,3 42, Rentals 8153 Rental-Building/Space 359, , , , Rental-Caps & Gowns 16,12 15,5 15,5 16, Professional Serv/Consultants 8114 Services-Consultants 37,4 25,624 32,44 46,1 812 Services-Contracted 2,12 258, ,691 23, Services-Temporary Help 11,775 73,823 53, 6,2 822 Safety/Security 168, , , , Payroll Processing 136,98 119,632 14,1 12,611 Conference & Travel 8116 Travel-Conference 38,425 49,98 51,688 56, Travel 37,66 37,418 35,963 22, Parking Expense 2,34 2,314 2,314 2,34 Utilities 8172 Trash Removal 65,337 61,932 62,422 6, Utilities 353,87 35, , , Electricity 697, , ,4 686, Gas/Heating Fuel 3,724 45,294 45,84 57, Water/Sewer 53,586 49,217 6,5 51,34 Employee Development 8144 Employee Development 5,916 15,823 36,523 24,7 817 Employee Text Incentive 114, ,684 17,715 13, Retiree Health Expense 1, ,979 19,14 117,432 Other Direct Costs 819 Spoilage 2,164 4, , Bad Debt Expense 4,223 89,31 1,65 1, Dues, Membership, Subscription 34,625 27,19 27,865 32, Cash Short/Over 4, ,27 3, Proposal Costs Reference Materials 576 1,783 1,2 1, Materials ,2 CSUF ASC Budget Page 29

32 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Details Auxiliary Services Total Current Prior FY Year Proposed Actual Forecast Budget Budget Other Direct Costs 536, ,93 773,12 845, 819 Prior Fiscal Year Expense -96, Recruitment 1,367 1,84 2,145 1, Restocking Fees 4,176 2,98 5,272 2, Departmental Allocation 8198 Departmental Allocation 32,69 42, 42, 45, IDC Allocation 936,46 765, 739,992 92,885 Public Relations 8118 Board Relations 27,271 31,555 28,2 32, Hospitality/Food & Beverages 1,56 2, , Public Relations 2,447 27,546 31,952 27,754 Administrative Fee 815 Administrative Fee 5 1, 8283 Property Management Expense 736, , ,183 94,419 Equipment Rental/Expense 813 Equipment-Expendable 92,54 66,743 81,68 85, Rental-Equipment 6,989 19,348 1,8 21,46 Total Operating Expenses 13,43,726 13,815,664 13,443,688 15,329,863 Commissions Income 622 Maui Wowi 4,17 4, 3, 4,3 623 Michaelangelos Pizza Vendor Commissions 15,377 19,525 38,25 2,2 629 Commissions Income 297,976 34, ,95 34, Licensing Income 11,885 31,934 13,937 15, 6228 First Class Vending Commission 26,482 59, 5,42 54,8 623 Juice It Up Commission Income 83,51 82,2 82,269 81, Kettle Masters Commission Incm 6,968 6,2 7,855 6, AJs Espresso Commission Income 57,364 5, 58,4 52, Barcelona on the Go 26,41 26, 3,22 27, Misc. Mobile Food Trucks 1,73 8,8 4,96 9, Spud Runners Juice It Up Yogurt Commission 1,85 2,4 2,5 Total Commission Income 541, ,62 572, ,786 Administrative Services 66 Contracted Services 41,734 42,366 41,742 41, Administrative Services 1,159,263 1,21,37 1,282,35 1,299,996 Indirect Cost Recoveries 61 Indirect Cost-Federal 1,46,324 1,3, 1,5, 1,5, 62 Indirect Cost-State 35, , 288, 3, 63 Indirect Cost-Profit Oriented 23,177 27,12 18, 21, 64 Indirect Cost-Fnd & Tax Exempt 51,227 17, 62,4 12, 644 Program Fees 3,74 Commissions Income 6229 Pepsi Commission Income 66,358 76, 65, 85,2 CSUF ASC Budget Page 3

33 CSU Fullerton Auxiliary Services Corporation Consolidated Budget Division Details Details Auxiliary Services Total Current Prior FY Year Proposed Actual Forecast Budget Budget Investment/Interest Income 69 Interest Income 43,2 57, 43,8 43, Dividend Income 63,238 8,936 62, 17, 62 Investment Income/Dividends 69,68 35,15 45, Rental Income 618 Textbook Rental Income 172, , , , Rental Income 9,551,553 9,476,72 8,961,73 1,576, Parking Lease Income 57,72 37,155 57,72 92, Storage Rent 1,62 16,737 14,76 31, Pepsi Market Fund 18, 135, 18, 135, 617 EWR Admin Fee Income Returned Check/Item Charge Shipping & Postage Charges 63,264 56,591 64,762 6, Restocking Fee Titan Tech Ctr 1, Restocking Fee 3,95 3,95 2,228 3, Maintenance Assessments 188, , ,36 189, Ground Lease Fees 114, ,215 12, 118, Computer Repair Service 8,136 9,61 5,565 4, Computer Repair Parts 1, , Rental Caps/Gowns/Hoods 29,465 26,8 28, 27,3 65 Other Operating Income 313,71 429, , , ,413 1,155 8, Gain/Loss on Sales of Assets 23, , Rebates 29,361 2,31 4,431 23,445 Total 13,981,363 14,231,979 13,525,133 15,521,311 Net Income (Loss) 1,36,96 917, , ,984 CSUF ASC Budget Page 31