Minnesota State University, Mankato Fiscal Year 2016 Financial Trends and Highlights

Size: px

Start display at page:

Download "Minnesota State University, Mankato Fiscal Year 2016 Financial Trends and Highlights"

Alice Kelly
5 years ago
Views:

1 Minnesota State University, Mankato Fiscal Year 2016 Financial Trends and Highlights Without GASB 68 (Unfunded Pension Liabilities) Per Full Year Equivalent Student Data Composite Financial Index Benchmark Ratios: Values Student FYE 13,752 13,861 14,180 14,194 Primary Reserve % Change in Student FYE -0.8% -2.2% -0.1% -1.7% Return on Net Assets (0.10) (0.01) 0.60 Viability Total Operating Expense Per Student FYE $ 15,433 $ 15,324 $ 14,519 $ 14,005 Operating Margin 0.20 (0.07) (0.11) (0.06) 0.30 Direct Student Expense Per Student FYE $ 9,285 $ 9,153 $ 8,818 $ 8,335 Composite Total Percent Direct Student Expense 60.2% 59.7% 60.7% 59.5% Student Based Revenue Per Student FYE $ 9,550 $ 9,083 $ 8,663 $ 8,520 Student Based Revenue with Fin Aid Per Student FYE $ 1,874 $ 1,883 $ 1,860 $ 1,865 Total Student Based Revenue $ 11,424 $ 10,966 $ 10,523 $ 10,385 % of Total Revenue 67.1% 70.0% 71.8% 72.7% Appropriation Revenue Per Student FYE $ 4,251 $ 3,945 $ 3,628 $ 3,311 % of Total Revenue 25.0% 25.2% 24.8% 23.2% Grant Revenue Excluding Financial Aid $ 348 $ 413 $ 334 $ 394 Notes: The values above are all weighted values. The "Benchmark" values denote relatively good financial health. % of Total Revenue 2.5% 3.0% 2.4% 2.8% GASB 68 which requires entities to disclose their portion of unfunded pension liabilities was implemented in FY2015. Total Revenue Per Student FYE $ 17,017 $ 15,674 $ 14,647 $ 14,281 Operating Margin Per Student FYE $ 432 $ (138) $ (218) $ (112) % of Total Revenue 2.5% -0.9% -1.5% -0.8% (0.50) (1.00) 2.49 Composite Financial Index Composite Financial Index Operating Margin & Unrestricted Net Asset Trends (In Thousands) Composite Financial Index $60,000 $55,359 Fixed Assets - Investment, Age, and Maintenance $50,000 $48,422 $44,761 $45,235 Fixed Asset Ratios: Additions to Beginning Depreciable Cost (Investment) 10.5% 2.7% 1.9% 2.5% Ending Accumulated Depreciation to Depreciation Expense (Age) 13.3 Yrs 12.5 Yrs 11.7 Yrs 11.0 Yrs Facilities Maintenance Ratio 6.5% 6.9% 7.4% 7.4% Operations and Maintenance Expense per Square Foot $ 5.45 $ 5.55 $ 5.76 $ 5.62 Estimated University Square Feet (In Thousands) 2,655 2,655 2,655 2,655 $40,000 $30,000 $20,000 $10,000 $5,939 $0 $(1,916) $(3,093) $(1,592) $(10,000) Unrestricted Net Assets $55,359 $48,422 $44,761 $45,235 Operating Margin $5,939 $(1,916) $(3,093) $(1,592) Unrestricted Net Assets Operating Margin Notes: Margin is the income (loss) before other revenues, expenses, gains, or losses from the statements of revenues, expenses, and changes in net assets. GASB 68 which requires entities to disclose the portion of unfunded pension liabilities was implemented in FY2015.

2 Composite Financial Index ( FY2013 FY2016) Without GASB 68 (Unfunded Pension Liabilities) Ratios: Benchmark Values Primary Reserve Return on Net Assets (0.10) (0.01) 0.60 Viability Operating Margin 0.20 (0.07) (0.11) (0.06) 0.30 Composite Total Notes: The values above are weighted values. The "Benchmark" values denote relatively good financial health. GASB 68, which requires entities to include their portion of unfunded pension liabilities, was implemented in FY2015.

3 Notes: The values above are weighted values. Additionally, these financial ratios have not been adjusted to account for the effect of HEAPR funds treated as repairs and maintenance expenses instead of being capitalized. GASB 68, which requires entities to include their portion of unfunded pension liabilities, was implemented in FY2015.

4 Notes: The values above are weighted values. Additionally, these financial ratios have not been adjusted to account for the effect of HEAPR funds treated as repairs and maintenance expenses instead of being capitalized. GASB 68, which requires entities to include their portion of unfunded pension liabilities, was implemented in FY2015.

5 4.00 Composite Financial Index Trends (FY FY2016) Without GASB 68 (Unfunded Pension Liabilities) CFI CFI with Foundation CFI without Revenue Fund CFI Revenue Fund Only (1.00) CFI CFI with Foundation CFI without Revenue Fund CFI Revenue Fund Only Notes: The values above are weighted values. Additionally, these financial ratios have not been adjusted to account for the effect of HEAPR funds treated as repairs and maintenance expenses instead of being capitalized. GASB 68, which requires entities to include their portion of unfunded pension liabilities, was implemented in FY2015.

6 Scale for Charting Composite Financial Index (CFI) Performance Scoring Scale Weaker Financial Position Relatively Stronger Financial Position Strongest Financial Position Assess institutional viability to survive Reengineer the institution MSU, Mankato Composite Financial Index (CFI) 2.49 Direct institutional resources to allow transformation Focus resources to compete in future state Allow experimentation with new initiatives Deploy resources to achieve a robust mission * Ratio Analysis in Higher Education-Measuring Past Performance to Chart Future Direction, 1999, Fourth Edition, KPMG LLP and Prager, McCarthy & Sealy, LLC, page

7 Per Full Year Equivalent Student Data (without GASB 68 Unfunded Pension Liabilities) Student FYE 13,752 13,861 14,180 14,194 % Change in Student FYE -0.8% -2.2% -0.1% -1.7% Total Operating Expenses per Student FYE $ 15,433 $ 15,324 $ 14,519 $ 14,005 Direct Student Expense Per Student FYE $ 9,285 $ 9,153 $8,818 $8,335 % Direct Student Expense 61.6% 60.9% 60.7% 59.5% Student Based Revenue Per Student FYE $ 9,550 $ 9,083 $ 8,663 $ 8,520 Student Based Revenue Financial Aid Per Student FYE $ 1,874 $ 1,883 $ 1,860 $ 1,865 Total Student Based Revenue Per Student FYE $ 11,424 $ 10,999 $ 10,523 $ 10,385 % of Total Revenue 67.1% 70.0% 71.8% 72.7% Appropriation Revenue Per Student FYE $ 4,251 $ 3,945 $ 3,628 $ 3,311 % of Total Revenue 25.0% 25.2% 24.8% 23.2% Grant Revenue (Excluding Financial Aid) Per Student FYE $ 348 $ 413 $ 334 $ 394 % of Total Revenue 2.5% 3.0% 2.4% 2.8% Total Revenue Per Student FYE $ 17,017 $ 15,674 $ 14,647 $ 14,281 Operating Margin Per Student FYE $ 432 ($ 138) ($ 218) ($ 112) % of Total Revenue 2.5% - 0.9% - 1.5% - 0.8%

8 Operating Margin & Unrestricted Net Asset Trends (In Thousands) Without GASB 68 (Unfunded Pension Liabilities) $60,000 $55,359 $50,000 $40,000 $48,422 $44,761 $45,235 $30,000 $20,000 Unrestricted Net Assets Operating Margin $10,000 $5,939 $0 $(1,916) $(3,093) $(1,592) $(10,000) Unrestricted Net Assets $55,359 $48,422 $44,761 $45,235 Operating Margin $5,939 $(1,916) $(3,093) $(1,592) Note: Margin is the Income (Loss) Before Other Revenues, Expenses, Gains, or Losses from the Statements of Revenues, Expenses, and Changes in Net Assets.

Annual Financial Assessment Higher Learning Commission Financial Ratios

Annual Financial Assessment Higher Learning Commission Financial Ratios Financial ratios can be useful tools for measuring and analyzing financial performance, understanding and communicating financial