UNIVERSITY OF NORTHERN COLORADO: FINANCIAL REPORT 03/31/2011 OVERVIEW Financial highlights of the 3 rd quarter financial report for fiscal year 2011-12 are summarized below: Cash The University s cash position remains strong at 94.3 million. Reserves The CLIFF reserve remains at 19.7 million; we anticipate an increase from FY12 yearend surplus. Accounts Receivable The 3 rd quarter net accounts receivable is about 1.6 million greater than the previous year at this time due primarily to the timing of 3 rd party international payments. Budget to Forecast At the end of the 3 rd quarter, we forecast a 10. million surplus, including 2.1 million of extraordinary income from the foundation for buying down our debt. Page 1
CASH The University cash position is about 16. million higher than the previous fiscal year. Figures 1 and 2 below show amounts available for Operating, Innovation and Multi-Year, Capital Projects, and Reserves. (Note: Restricted funds have money owed to them from the grantors. Until the restricted funds are received, the balances are supported by operating funds.) Figure 1 3 rd Quarter Cash Balance Operating On Campus Education & General Housing, Dining, Parking, UC Extended Campus & Other Designated for Restricted Funds Innovation and Multi-Year Capital Projects Reserves Total Cash 31,60,973 12,419,6 2,43,360 37,467 11,69,914 4,164,633 30,696,412 94,302,31 33% 4% 12% 1% 13% 3% 34% On Campus Education & General Housing, Dining, Parking, UC Extended Campus & Other Designated for Restricted Funds Innovation and Multi-Year Capital Projects Reserves Figure 2 The cash flow trend has been relatively consistent over the last fourr years. The low point during the year has traditionally been the end of July through mid-august and is a good point for benchmarking purposes. This is noted with the letter A in the graph. Page 2
As we intentionally build our cliff reserve to manage unpredictable state funding over the next several years, the high cash points (Sep and Jan) are higher than historical trends. In addition, the trend has been affected over the last few years by various factors, the most significant of which is timing of payments from the State for Fee-for-Service and State Fiscal Stabilization Fund. Table 1 Ending Cash Balance Fiscal Year Month 2009 2010 2011 2012 Jul 40,071,414 37,6,721 40,70,79 0,412,74 Aug-1 37,213,94 33,66,413 3,979,777 46,162,394 Aug 42,167,196 49,416,21,299,24 70,71,449 Sep 66,311,99 73,7,42 67,2,6 1,493,49 Oct 64,111,30 70,479,779 69,092,272 1,60,719 Nov 2,06,91 9,763,724,623,010 72,700,349 Dec 4,00,9 4,920,12 6,434,663 69,990,42 Jan 6,13,,43,24 3,77,79 101,3,936 Feb 63,41,32 1,409,777 6,44,766 100,610,443 Mar 6,43,966 71,434,6 77,466,620 94,302,314 Apr 7,779,07 62,491,426 71,497,091 May 46,39,12 60,36,341 62,962,073 Jun 3,767,70,020,717 66,977,0 CASH RESERVES Strong reserves provide the University a temporary cushion in economic downturns. The following table shows the composition of reserves at the 3 rd quarter ended March 31, 2012. Table 2 Cash Reserve Summary Q3 Mandatory Bonded R&R 70,000 Capital Auxiliary Building 6,41,0 State Building 1,004,4 Smart Classroom 47,66 Rebate & Student Fees 694,606 Arlington Park Debt Service 414,336 Operating Housing and Dining 20,000 Special Colorado Loss in Funding Fund (CLIFF) 19,6,179 Central Reserves-Risk, Fringe Benefits 721,367 Total Reserves 30,696,413 Page 3
ACCOUNTS RECEIVABLE Student accounts receivable is the second largest current asset, afterr cash, at the university. The 3 rd quarter balance in student accounts receivable is about 1.6 million greater than the previous year. Table 3 Student Accounts Receivable (Net) Q1 - Sep 30 Q2 - Dec 31 Q3 - Mar 31 Q4 - Jun 30 FY10 12, 43,34 4, 36,39, 9,969, 44,02 FY11 13,034,9 4,902,10 6,111,099,67,67 FY12 13,06,40 4,493,17 7,704,463 - Figure 3 Net student accounts receivable includes the accounting estimate forr uncollectible accounts, or bad debt. Table 4 shows the amount we believe will bee collected, categorized by age. Table 4 Accounts Receivable Aging at 3/31/12 Days Gross AR Allowance FY12 Net AR FY11 Net AR 0 to 10* 11 to 360 361 to 40,992,291 1,601,60 7,793 100,124 264,26 394,396,92,16 1,337,340 394,396 4,29,21 1,19,362 400,02 41 to 10 10 & Over 1,10,39 3,2,236 1,070,21 3,2,236 0,9-12,697 100,467 Total 12,1,764,114,301 7,704,463 6,111,099 * This aging bucket includes "guaranteed" payments from 3 rd parties. Page 4
Revenues Resident Tuition Non-Resident Tuition Other Tuition WUE/WICHE Extended Campus Tuition COF Stipend Fee-for-Service Academic Fees Student/Other Fees Restricted Gifts for Operations Room and Board Other Auxiliary Services Restricted Grant Facilities/Admin Recovery Other Revenue Net Non-Operating Revenues BUDGET TO FORECAST For the Quarter Ended March 31, 2012 1 Annual Notes Adjusted Budget Annual Forecast 2 2 2 3 4 4 6 Variance Actual at 03/31/2012 % Actual / Budget 7,636,126 6,76,0 (79,621) 2,266,07 90.7% 1,901,06 14,22,290 (1,37,77) 13,39,742 4.2% 2,6,60 4,29,244 1,642,639 4,319,640 149.6% 13,992,960 12,00,713 (1,942,247) 7,71,129.1% 14,93,00 1,004,620 6,20 13,4,91 93.0% 17,70,06 17,01,96 (6,20) 13,403,106 7.0%,26,279,160,000 (96,279) 4,6,031 9.1% 9,9,914 10,42,32 439,46 9,00,92 9.1% 2,600,000 3,200,000 600,000 2,243,424 6.3% 31,163,2 30,662,000 (01,2) 30,210,691 96.9%,690,962 9,26,0 77,093 7,309,39 4.1% 1,000 6,900,900 9,142 67.9% 9,096,12 9,246,96 149,74 7,746,97.2% 44,766 3,41,000 2,696,234 3,0,61 36.6% Total Revenues 191,74,646 193,17,291 1,432,64 170,361,471.% Expenditures & Transfers Personnel Expenditures Faculty Salaries 37,096,71 3,900,600 1,196,271 27,696,36 74.7% Exempt Salaries 21,7,7 19,,00 1,993,07 14,1,626 67.3% GA and TA Salaries and Scholarships,1,97,1,97-7,30,209.% Classified Salaries 19,960,499 1,74,100 1,36,399 13,97,474 70.0% Others Wages,226,773,764,900 (3,127) 4,207,004 0.% Fringe Benefits 22,979,214 20,77,000 2,204,214 1,239,013 66.3% Subtotal Personnel Expenditures 7 11,360,41 109,11,997 6,241,44 2,941,713 71.9% Non-Personnel Expenditures Cost of Sales,1,793 4,900,000 2,793 4,40,2.0% Other Current Expenses 10,21,93 4,700,000,1,93 3,644,043 3.7% Purchased Services 10,2,34 12,00,000 (1,947,466) 9,211,72 7.3% Supplies 7,761,103,600,000 2,161,103 3,701,420 47.7% Scholarships 9 14,10,7 14,03,000 (322,413) 14,02,3 99.1% Utilities 10 6,727,761,92,000 3,761 4,21,11 67.2% Travel 2,942,63 3,100,000 (17,36) 2,404,207 1.7% Capital 11 1,632,772 2,22,000 (92,22) 2,447,121 149.9% Subtotal Non-Personnel Expenditures 9,201,77 3,420,000,71,77 44,390,71 74.9% Transfers Mandatory Transfer Out-Debt Service 9,093,117 9,093,117-6,0,124 71.% Transfers to Cap. Leases, Loans, Other 724,17 46,713 177,474 42,2.% Non-Mandatory Transfer-Out Other 37,920 37,920-37,606 99.2% Transfers to Multi-year & Innovation 4,21,64 4,21,64-3,,074.0% Non-Mandatory Transfers-Out to Op Reserves 900,000 900,000 - - 0.0% Non-Mandatory Transfers-Out to Projects 7,22 7,22-7,22 100.0% Non-Mandatory Transfers-Out to Capital Reserves 4,919,20 4,973,20 (4,000) 6,36,9 129.2% Subtotal Transfers 19,96,9 19,4,416 123,474 16,9,42.1% Total Expenditures and Transfers 194,31,09 12,34,413 12,147,096 144,320,917 74.2% Revenues Less Expenditures and Transfers (2,7,63) 10,793,7 13,79,741 26,040,4 See Explanation of Notes on page 6. Page
1 2 3 4 6 7 9 10 11 Notes to 3 rd Quarter Budget to Forecast Report (page ) The budget to forecast report includes operating and restricted gift revenue from the UNC Foundation. This report does not include internal sales, restricted grants and contracts, or restricted financial aid revenue. The main campus tuition revenue forecast is based on the spring census (January 23, 2012). Undergraduate main campus tuition revenue and graduate main campus tuition revenue is forecasted within.6% of budget. See Table on the following page for details. The extended campus tuition revenue forecast is below budget. Fewer programs than originally budgeted have been offered, resulting in forecasted student credit hours being 10.0% below the original budget. However, extended campus tuition in FY12 is forecasted to be up over FY11 actual revenue by 2.3 million (19%). FY12 extended campus faculty salaries and other expense also will be less than budgeted. There will be a minor shift between the COF stipend and the fee-for-service revenue due to a slight change from budget in COF student credit hours. The revised revenue forecasts for academic fees, student fees, restricted gifts for operations, room & board, other auxiliary services, restricted grant facilities/admin recovery, and other revenue are based on an analysis of prior year 4 th quarter revenues and year-to-date receipts. Net non-operating revenues includes a 2.1 million quasi-endowment transfer to UNC that was used for a buy-down of 2001 auxiliary bonds as part of the July 1 issuance of 2011A bonds. Personnel expenditures are expected to be 6.2 million favorable to budget. Many positions that were frozen beginning in February 2011 have remained vacant for a portion or all of the current year, resulting in vacancy savings in our personnel budget. Fringe benefits were less than budgeted due to lower than budgeted costs and vacant positions. Cost of sales, other current expenses, purchased services, supplies, and travel are expected to be 6.0 million favorable to budget. The campus community has identified 4.6 million in sustainable cost savings and continues to limit expenses similarly to last fiscal year Institutional scholarship expenditures are estimated to be about 322,000 greater than budgeted. The variance is the combination of an estimated shortfall of 400,000 in athletics fundraising and minor net savings in other institutional scholarship programs. The utilities forecast is based on the most current information for usage trends and rate change estimates. Weather conditions can vary significantly from one year to another, resulting in variance from budgeted to actual expenditures. The estimated savings of more than 00,000 is primarily due to mild weather in FY12. The capital forecast reflects an anticipated increase in library materials cost and an increase in small equipment purchases on campus. Page 6
MAIN CAMPUS RESIDENT AND NON-RESIDENT TUITION DETAIL Table Budget Forecast Variance at 3/31/2012 Undergrad Main Campus Resident Non-Resident WUE Total Undergrad Main Campus Resident Non-Resident WUE Total Total Fall 11 23,390,233,367,90 1,394,909 30,12,732 Fall 11 23,7,602 4,627,17 2,036,171 30,0,930 39,19 Interim 11-12 334,71 62,01 16,1 412,94 Interim 11-12 2,376 44,940 16,470 349,76 (63,16) Spring 12 22,049,2,14,424 1,33,71 2,36,397 Spring 12 21,491,70 4,234,119 1,93,213 27,664,02 (72,31) Summer 12 2,,719 2,40 136,790 3,0,917 Summer 12 2,92,661 497,12 20,000 3,631,173 0,26 Total FY12 4,662,922 11,103,473 2,6,60 62,63,000 Total FY12 4,96,39 9,403,72 4,19,4 62,19,971 (47,029) Graduate Main Campus Resident Non-Resident WICHE Total Graduate Main Campus Resident Non-Resident WICHE Total Total Fall 11 3,77,773 2,0,302 -,64,07 Fall 11 3,427,921 2,230, 172,949,31,7 (32,320) Interim 11-12 11,1,49-17,340 Interim 11-12 12,10 - - 12,10 (4,30) Spring 12 3,,076 2,02,3 -,607,611 Spring 12 3,19,126 2,233,31 160,441,,94 (1,663) Summer 12 1,627,474 64,296-2,21,770 Summer 12 1,644,9 64,296-2,29, 17,0 Total FY12,973,204 4,797,92-13,770,796 Total FY12,20,116,11,62 333,390 13,732,06 (3,72) Total Main Campus Resident Non-Resident WUE/WICHE Total Total Main Campus Resident Non-Resident WUE/WICHE Total Total Fall 11 27,169,006 7,42,92 1,394,909 36,016,07 Fall 11 27,31,23 6,,042 2,209,120 36,32,6 36,7 Interim 11-12 346,96 67,10 16,1 430,294 Interim 11-12 300,6 44,940 16,470 362,296 (67,99) Spring 12 2,604,331 7,200,99 1,33,71 34,144,00 Spring 12 24,66,76 6,467,00 2,09,64 33,23,030 (90,97) Summer 12 4,16,193 1,179,704 136,790,32,67 Summer 12 4,73,220 1,11,0 20,000,930,02 97,341 Total FY12 7,636,126 1,901,06 2,6,60 76,423,796 Total FY12 6,76,0 14,22,290 4,29,244 7,92,039 (49,77) Total Forecast for Fiscal Year 2011-12 (49,77) Page 7
MULTI-YEAR BUDGET For the Quarter Ended March 31, 2012 Sources Unexpended Balances from FY11 (revised for net prepaid adjustment) 9,73,944 FY12 Transfers from Operating (current revenues) completed through Q2 4,21,64 FY12 Net Transfers from/to Capital Reserves/Projects and Other 4,334 FY12 Net Transfers and Adjustments to be completed in Q3 7,790 Total Multi-Year Budgets 14,004,932 Actual at Available Multi-Year Commitments Budget 03/31/2012 Balance Grant Match Funds 1,076,63 12,79 64,24 Faculty Research and Professional Development 96,1 1,311 13,204 Faculty Start-up Packages 70,10 96,927 473,223 Instructional Technology 1,29,794 274,632 1,01,161 Academic Priorities and Accreditation 3,737,702 32,94 3,70,10 Facility Repair and Campus Safety Projects 337,36 69,949 267,437 University Strategic Priorities 174,16 0,267 123,9 Research Incentive (IDC) 1,73,174 02,42 1,23,692 General Fund Innovation 441,364 21,97 22,377 Online Course Development Innovation 746,9 207,469 39,16 Academic Portfolio Innovation 2,136,441 6,902 2,129,39 College Incentive and Innovation Funds 77,39 64,2 723,107 Total Multi-Year Budgets 14,004,932 2,19,37 11,1,4 Page
CAPITAL PROJECTS For the Quarter Ended March 31, 2012 Budget Actual at 03/31/2012 Available Balance Projected Expenditures through 06/30/2012 General Fund Projects with budgets less than 200,000 1,009,233 462,70 46,43 227,32 College of NHS Equipment 36,473 306,7 61,6 17,000 Card Access System Upgrade 31,29 7,932 23,366 10,000 Butler-Hancock Interior Renovation 30,126 30,126 - - Butler-Hancock Gym Wall Panel Replacement 94,192 43, 910,337 60,000 Gray Hall Window Replacement Phase 1 77,26 44,63 32,612 - Michener Fire Alarm System 33,661 329,96,696 - McKee Hall Roof Replacement 326,72 233,31 93,374 - Total General Funded Projects 3,13,972 1,49,19 1,676,44 904,32 Housing, Dining, Extended Studies, Student Fees Projects with budgets less than 200,000 1,907,22 73,6 1,13,642 16,323 Central Campus FF&E 2,4 2,4 - - Harrison Hall Student Rm Remodel 772,46 73,9 36, 29,041 Harrison St Rm Bath Reno Prototype 1,293,94 6,374 1,22,71 00,000 Michener Repairs 4,74-4,74 - UC Convenience Store 317,11 272,96 44,10 - Total Auxiliary and Other Funded Projects 4,4,144 2,116,409 2,467,73 1,34,364 Restricted Capital Grants/Gifts Projects with budgets less than 200,000 6,420 1,374 0,046 33,000 Total Restricted Grant/Gift Funded Projects 6,420 1,374 0,046 33,000 Total University Funded Projects 7,7,36 3,94,302 4,194,234 2,22,96 State Capital Appropriations Reroof Candelaria, Butler-Hancock, McKee 7,697,630 2,067 - Total State Capital Appropriated Projects 7,697,630 2,067 - Total Capital Projects 7,796,233 3,99,932 4,196,301 2,22,96 UNC has a deferred maintenance backlog of 11 million for the state-supported and auxiliary facilities. State appropriations for capital projects were 4 million from 1999 2003, but only 1 million from 2004 2010. No additional monies are anticipated from the state for this purpose in the foreseeable future (1-3 years). Page 9
RESTRICTED GRANTS AND CONTRACTS For the Quarter Ended March 31, 2012 Actual at Budget 03/31/2012 Restricted Grants and Contracts Federal Grants 6,730,10,74,071 State and Local Grants 77,746 1,322 Other Private Grants 14,09 74,19 UNC Foundation Grants 1,66,11 2,41 Total Restricted Grants and Contracts,609,0,94,967 Restricted Financial Aid Federal Financial Aid 13,49,270 13,432,770 State and Local Financial Aid 3,04,24 3,32,12 Other Private Financial Aid 6,0,000 79,171 Restricted Student Loan Funds - 161,7 Restricted Endowment Funds - 6,41 Total Restricted Financial Aid 23,603,24 1,232,02 Total Restricted Grants, Loans, Endowments 32,213,404 24,217,049 Page 10