THE UNIVERSITY OF TEXAS SYSTEM KEY FINANCIAL INDICATORS REPORT U. T. SYSTEM BOARD OF REGENTS MEETING MAY 9 10, 2017 Agenda Book 316
YEARTODATE 2016 AND 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT AND PROJECTED 2017 YEAREND FY 2016 U. T. Health Institutions Projected ($ in millions) Clinical Revenues $ 3,535.5 3,668.4 7,382.7 Sponsored Programs 1,040.4 1,075.9 2,140.5 State Appropriations 588.8 611.4 1,219.2 Net Tuition and Fees 76.5 80.9 155.8 Auxiliary Revenues/Sales & of Educational Activities 104.9 108.3 217.4 Net Investment Income 163.7 196.2 367.8 Other Operating Revenues 205.5 197.2 387.5 Gift Contributions for Operations 139.7 124.3 220.2 Total Revenues 5,855.0 6,062.6 12,091.0 Salaries and Wages 2,718.3 2,880.9 5,729.2 Payroll Related Costs 735.7 794.5 1,567.2 All Other Operating Expenses 398.3 412.0 839.7 Materials and Supplies 729.3 771.3 1,526.7 Depreciation and Amortization 371.6 409.1 832.3 Other Contracted 249.9 244.0 461.9 Professional Fees and 208.4 184.8 395.2 Interest Exp. on Cap. Asset Financing 47.0 59.7 121.6 Utilities 67.5 68.4 144.7 Total Expenses $ 5,526.0 5,824.8 11,618.4 Adjusted Income (Loss) 329.0 237.8 472.6 4,000.0 3, 3,668.4 3,535.5 COMPARISON OF REVENUES FEBRUARY FY 2016 TO ($ IN MILLIONS) 1,040.4 1,075.9 588.8 611.4 Clinical Revenues Sponsored Programs & Nonexchange SP 76.5 80.9 104.9 108.3 163.7 196.2 205.5 197.2 State Appropriations Net Tuition & Fees Auxiliary Revenues/S&S Net Investment Income of Educational Activities Other Operating Revenues 139.7 124.3 Gift for Operations 3, COMPARISON OF EXPENSES FEBRUARY FY 2016 TO ($ IN MILLIONS) 2,880.9 2,718.3 735.7 794.5 729.3 771.3 Salaries & Wages 398.3 412.0 Payroll Related Costs All Other Operating Expenses Materials & Supplies 371.6 409.1 Depreciation & Amortization 249.9 244.0 208.4 184.8 Other Contracted Professional Fees & 47.0 59.7 67.5 68.4 Interest Expense Utilities Agenda Book 317
YEARTODATE 2016 AND 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT AND PROJECTED 2017 YEAREND FY 2016 U. T. Academic Institutions Projected ($ in millions) Clinical Revenues $ 0.1 0.2 2.3 Sponsored Programs 664.7 671.3 1,363.4 State Appropriations 542.8 546.5 1,089.1 Net Tuition and Fees 739.5 788.3 1,577.0 Auxiliary Revenues/Sales & of Educational Activities 497.9 548.5 803.0 Net Investment Income/Available University Fund (AUF) 314.3 331.7 626.3 Other Operating Revenues 17.9 28.6 46.6 Gift Contributions for Operations 89.8 108.5 209.9 Total Revenues 2,867.0 3,023.6 5,717.7 Salaries and Wages 1,231.8 1,299.5 2,526.8 Payroll Related Costs 328.1 359.1 692.9 All Other Operating Expenses 521.8 523.4 954.3 Materials and Supplies 135.0 138.8 259.9 Depreciation and Amortization 252.8 273.5 551.8 Other Contracted 131.0 154.5 304.5 Professional Fees and 35.9 42.2 94.8 Interest Exp. on Cap. Asset Financing 55.0 74.5 136.4 Utilities 71.2 74.1 133.3 Total Expenses $ 2,762.8 2,939.8 5,654.7 Adjusted Income (Loss) 104.2 83.8 63.0 900.0 COMPARISON OF REVENUES FEBRUARY FY 2016 TO ($ IN MILLIONS) 739.5 788.3 700.0 664.7 671.3 542.8 546.5 497.9 548.5 314.3 331.7 0.1 0.2 Clinical Revenues Sponsored Programs & Nonexchange SP State Appropriations Net Tuition & Fees Aux Rev/S&S of Ed Act Net Investment Income/AUF 17.9 28.6 Other Operating Revenues 89.8 108.5 Gift for Operations 1, 1, 1,299.5 1,231.8 COMPARISON OF EXPENSES FEBRUARY FY 2016 TO ($ IN MILLIONS) 521.8 523.4 328.1 359.1 252.8 273.5 135.0 138.8 131.0 154.5 35.9 55.0 74.5 71.2 74.1 42.2 Salaries & Wages Payroll Related Costs All Other Operating Expenses Materials & Supplies Depreciation & Amortization Other Contracted Professional Fees & Interest Expense Utilities Agenda Book 318
YEARTODATE 2016 AND 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT AND PROJECTED 2017 YEAREND U. T. System Administration ($ in millions) FY 2016 Projected Sponsored Programs $ 25.3 19.4 37.7 State Appropriations 1.4 1.3 2.5 Sales & of Educational Activities 17.9 16.3 32.7 Net Investment Income/AUF 137.6 168.2 223.9 Other Operating Revenues 11.3 52.6 105.2 Gift Contributions for Operations 0.7 0.8 0.8 Total Revenues 194.2 258.6 402.8 Salaries and Wages 32.8 39.9 79.7 Payroll Related Costs 7.4 8.9 17.8 All Other Operating Expenses 54.3 48.1 96.2 Materials and Supplies 12.3 13.9 27.9 Depreciation and Amortization 9.0 9.2 18.4 Other Contracted 14.5 11.5 31.3 Professional Fees and 8.2 7.6 15.1 Interest Exp. on Cap. Asset Financing 33.6 44.2 88.4 Utilities 0.2 0.2 0.4 Total Expenses $ 172.3 183.4 375.2 Adjusted Income (Loss) Excluding Other Postemployment Benefits (OPEB), Pension Exp., & Elimination of AUF Transfer to U. T. Austin 22.0 75.2 27.6 Increase in Net OPEB Obligation 333.4 353.5 707.0 Pension Expense 106.4 125.2 250.3 Elimination of AUF Transfer to U. T. Austin 153.1 171.8 343.6 Adjusted Income (Loss) (571.0) (575.3) (1,273.3) 180.0 COMPARISON OF REVENUES FEBRUARY FY 2016 TO ($ IN MILLIONS) 168.2 1 1 137.6 1 80.0 52.6 25.3 19.4 Sponsored Programs & Nonexchange SP 17.9 16.3 11.3 1.4 1.3 0.7 0.8 State Appropriations S&S of Educational Activities Net Investment Income/AUF Other Operating Revenues Gift for Operations COMPARISION OF EXPENSES FEBRUARY FY 2016 TO ($ IN MILLIONS) 54.3 48.1 44.2 39.9 32.8 33.6 30.0 10.0 7.4 8.9 12.3 13.9 9.0 9.2 14.5 11.5 8.2 7.6 Salaries & Wages Payroll Related Costs All Other Operating Expenses Materials & Supplies Depreciation & Amortization Other Contracted Professional Fees & Interest Expense 0.2 Utilities 0.2 Agenda Book 319
YEARTODATE 2016 AND 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT AND PROJECTED 2017 YEAREND U. T. Consolidated ($ in millions) FY 2016 Projected Clinical Revenues $ 3,535.5 3,668.6 7,385.0 Sponsored Programs 1,730.4 1,766.6 3,541.6 State Appropriations 1,133.0 1,159.2 2,310.8 Net Tuition and Fees 816.1 869.2 1,732.8 Auxiliary Revenues/Sales & of Educational Activities 620.7 673.1 1,053.0 Net Investment Income/AUF 462.5 524.3 874.3 Other Operating Revenues 234.7 278.3 539.4 Gift Contributions for Operations 230.1 233.6 430.9 Total Revenues 8,763.1 9,173.0 17,867.9 Salaries and Wages 3,982.9 4,220.3 8,335.7 Payroll Related Costs 1,071.2 1,162.5 2,277.8 All Other Operating Expenses 974.4 983.6 1,890.3 Materials and Supplies 876.7 924.0 1,814.5 Depreciation and Amortization 633.4 691.9 1,402.4 Other Contracted 395.4 410.0 797.7 Professional Fees and 252.5 234.6 505.1 Interest Exp. on Cap. Asset Financing 135.6 178.5 346.4 Utilities 138.9 142.6 278.4 Total Expenses $ 8,461.1 8,948.1 17,648.3 Adjusted Income (Loss) Excluding OPEB & Pension Exp. 302.0 224.9 219.6 Increase in Net OPEB Obligation 333.4 353.5 707.0 Pension Expense 106.4 125.2 250.3 Adjusted Income (Loss) (137.9) (253.8) (737.7) COMPARISON OF REVENUES FEBRUARY FY 2016 TO ($ IN MILLIONS) 4,000.0 3, 3,535.5 3,668.6 1,730.4 1,766.6 1,133.0 1,159.2 816.1 869.2 620.7 673.1 462.5 524.3 234.7 278.3 230.1 233.6 Clinical Revenues Sponsored Programs & Nonexchange SP State Appropriations Net Tuition & Fees Aux Rev/S&S of Ed Act Net Investment Income/AUF Other Operating Revenues Gifts for Operations 4, 4,000.0 3,982.9 4,220.3 COMPARISON OF EXPENSES FEBRUARY FY 2016 TO ($ IN MILLIONS) 3, 1,162.5 1,071.2 974.4 983.6 876.7 924.0 633.4 691.9 395.4 410.0 252.5 234.6 135.6 178.5 138.9 142.6 Salaries & Wages Payroll Related Costs All Other Operating Expenses Materials & Supplies Depreciation & Amortization Other Contracted Professional Fees & Interest Expense Utilities Agenda Book 320
YEARTODATE 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT 10,000.0 9,000.0 8,000.0 7,000.0 6,000.0 5,000.0 4,000.0 9,173.0 U. T. Consolidated (Excluding OPEB & Pension Expense) 8,948.1 224.9 U. T. System Administration (Excluding OPEB, Pension Exp. & AUF elimination) 2 1 258.6 183.4 75.2 U. T. Arlington 3 319.4 306.1 2 1 13.4 U. T. Austin 1, 1,520.3 1,423.9 1, 1, 96.4 U. T. Dallas 3 307.7 314.7 2 1 () (7.0) U. T. El Paso 2 231.3 242.5 1 () (11.3) U. T. Permian Basin U. T. Rio Grande Valley 49.3 48.4 2 258.7 258.6 30.0 1 10.0 0.9 0.2 Agenda Book 321
YEARTODATE 2017 FROM FEBRUARY MONTHLY FINANCIAL REPORT 2 U. T. San Antonio 264.0 270.8 80.0 70.0 72.9 U. T. Tyler 74.8 1 30.0 () (6.8) 10.0 (10.0) (1.9) 1, 1, U. T. Southwestern Medical Center 1,398.6 1,340.3 1, U. T. Medical BranchGalveston 1,021.3 1,030.3 1, 58.4 () (9.1) U. T. HSCHouston U. T. HSCSan Antonio 900.0 789.5 774.2 4 425.0 415.6 700.0 3 2 1 15.2 9.4 U. T. M. D. Anderson U. T. HSCTyler 2,333.1 2,159.4 1 95.1 105.0 80.0 173.7 () (9.9) Agenda Book 322
PUF / AUF / ILP Update For Quarter Ending March 31, 2017 PUF / AUF ILP 700 600 500 400 300 200 100 Projected AUF Spending ($millions) 20 34 150 150 180 180 111 111 42 42 208 209 120 115 123 118 298 298 313 313 320 324 Prior Current Prior Current Prior Current FY17 FY18 FY19 Other PUF Debt Service System Admin UT Austin Other UT Austin Base 140 120 100 80 60 40 20 0 (20) (40) PUF Debt Capacity (FY17FY22 $millions) Prior Quarter Range 52 Current Quarter Target 71 15.0 10.0 5.0 Summary of ILP Funding ($millions) 3.5 15.0 15.0 15.0 10.5 FY16 FY17 FY18 FY19 ILP Funding Available ILP Funding Committed Changes to PUF/AUF Since Prior Quarter PUF investment returns outperformed projections (4.2% act vs 1.6% proj) PUF land receipts of $160M exceeded projection of $125M FY17 Peoplesoft/SIS AUF approved for $13.6M FY18 campus auditor costs of $5.1M shifted back to campuses in exchange for $15.4M of capital funding (proposed for Board consideration in May 2017) Summary of ILP Funding FY17 ILP Available Funding: $15,000,000 Proposed ILP Funding Commitments: Student Success/QL#9 ($10,000,000) U. T. Network for Nat l Sec. ($500,000) Remaining FY17 ILP Available $4,500,000 PUF Permanent University Fund AUF Available University Fund ILP Internal Lending Program Agenda Book 323