FY2013 Actual vs. Budget Internal Financial Repor ng Financial Analysis of Unrestricted Annual Opera ons For the year ended 6/30/2013
UNIVERSITY OF MAINE SYSTEM FY2013 UNRESTRICTED ANNUAL OPERATIONS For FY2013, the UMS experienced a positive net increase from unrestricted operations of $10.1 million; the equivalent of 1.9% of the unrestricted annual operating budget. It should be noted, however, that this includes $6.3 million in net temporary investment income above budget and the $1.0 million transfer of System Reserves to offset the in state, undergraduate tuition and unified fee freeze. Institution Net Increase(Decrease) UMaine $ 897 Thousand 1.487 Million 265 Thousand K 0 UMM 0 200 Thousand 402 Thousand System wide Services (2.372) Million Temporary Investment Income 6.260 Million Employee Benefits 2.918 Million TOTAL $10.057 Million Major factors impacting the year end results: The temporary investment income budget was $2.5 million. UMS earned $8.760 net of expenses for a total budget to actual positive variance of $6.26 million. Of these funds, $5.0 million was transferred to the Budget Stabilization Fund which now has a balance of $15.0 million. (This fund may be utilized to mitigate deficit reserves and/or to hedge against future economic downturns.) The remaining $1.26 million of temporary investment income offsets the System wide Services deficit which resulted primarily from the planned use of reserves for one time funding of campus strategic initiatives and support. Campus budgets and final operating results include the transfer of $1.0 million in System Reserves to offset the FY2013 in state, undergraduate tuition and unified fee freeze. These one time funds were provided to institutions to allow time to bridge the budgetary gaps that resulted from this freeze. On December 27, 2012, the Governor issued an executive order curtailing the allotment of State appropriation. The UMS total appropriation curtailment was $2.5 million which was distributed to the campuses and System wide Services. FTE enrollments for Spring 2013 were 1.2% (250) FTE below budget. Fall 2012 enrollments were 0.7% (157 FTE) above budget. The average FTE for Fall and Spring combined was 22,170 (47 FTE or 0.2% below budget). Residence hall occupancy for Spring 2013 was 2.2% (132 students) below budget. Fall 2012 occupancy was 0.4% (25 students) below budget. The average occupancy for Fall and Spring combined was 6,018 (77 students or 1.3% below budget). Page 1
The Employee Benefit Pool experienced a positive variance of $2.918 million resulting from favorable actuarial valuations for both the workers compensation and the self insured health program liabilities. These funds were transferred to the Employee Benefit Pool Reserve which now has a balance of $20.5 million. Since UMS sponsors a self insured medical benefit program, unallocated reserves are critical to assure that future financial obligations can be met. It is recommended that the UMS Employee Benefit Pool Reserve equal three to six months of expected claims and expenses, or currently approximately $17 million to $33 million. Page 2
University of Maine System FY2013 FTE ENROLLMENT FY2012 FY2013 FY2013 VARIANCE ACTUALS BUDGET ACTUALS # % Fall UMaine 9,120 8,907 9,041 134 1.5% 2,823 2,781 2,862 81 2.9% 1,983 2,005 1,896 (109) (5.4%) K 702 704 779 75 10.7% UMM 537 553 571 18 3.3% 997 1,005 973 (32) (3.2%) 6,764 6,881 6,871 (10) (0.1%) Total 22,926 22,836 22,993 157 0.7% Spring UMaine 8,391 8,329 8,388 59 0.7% 2,824 2,741 2,770 29 1.1% 1,849 1,809 1,771 (38) (2.1%) K 685 693 696 3 0.4% UMM 548 564 548 (16) (2.8%) 935 936 892 (44) (4.7%) 6,417 6,525 6,282 (243) (3.7%) Total 21,649 21,597 21,347 (250) (1.2%) Average UMaine 8,756 8,618 8,715 97 1.1% 2,824 2,761 2,816 55 2.0% 1,916 1,907 1,834 (74) (3.9%) K 694 699 738 39 5.6% UMM 543 559 560 1 0.2% 966 971 933 (38) (3.9%) 6,591 6,703 6,577 (127) (1.9%) Total 22,288 22,217 22,170 (47) (0.2%) Page 3
University of Maine System FY2013 RESIDENCE HALL OCCUPANCY FY2012 FY2013 FY2013 VARIANCE ACTUALS BUDGET ACTUALS # % Fall UMaine 3,405 3,398 3,348 (50) (1.5%) % 1,053 1,000 947 (53) (5.3%) K 205 210 225 15 7.1% UMM 254 262 256 (6) (2.3%) 301 285 296 11 3.9% 1,004 1,100 1,158 58 5.3% Total 6,222 6,255 6,230 (25) (0.4%) Spring UMaine 3,270 3,246 3,173 (73) (2.2%) % 959 990 874 (116) (11.7%) K 169 190 169 (21) (11.1%) UMM 227 234 225 (9) (3.8%) 284 285 268 (17) (6.0%) 950 990 1,094 104 10.5% Total 5,859 5,935 5,803 (132) (2.2%) Average UMaine 3,338 3,322 3,261 (61) (1.8%) % 1,006 995 911 (84) (8.4%) K 187 200 197 (3) (1.5%) UMM 241 248 241 (7) (2.8%) 293 285 282 (3) (1.1%) 977 1,045 1,126 81 7.8% Total 6,042 6,095 6,018 (77) (1.3%) Page 4
University of Maine System Unrestricted Annual Operations FY2013 ACTUAL vs. BUDGET ($000's) FY2013 ACTUAL vs. BUDGET FY2012 FY2013 FY2013 VARIANCE ACTUALS BUDGET ACTUAL $ % Revenues Tuition & Fee Revenue $267,453 $265,727 $270,340 $4,613 1.7% Dining & Residence Revenue 57,401 59,431 57,552 (1,879) (3.2%) Tuition Waivers/Scholarships (48,743) (50,434) (51,901) (1,467) 2.9% Net Student Charges Revenue 276,111 274,724 275,991 1,267 0.5% State Appropriation 181,031 178,695 176,160 (2,535) (1.4%) State Fiscal Stabilization Funds ARRA 61 0 0 0 % Other Income 75,880 67,436 77,924 10,488 15.6% Total Revenues $533,083 $520,855 $530,075 $9,220 1.8% Expenses Compensation & Benefits $336,344 $350,065 $341,631 $8,434 2.4% Fuel & Electricity 18,305 22,552 19,918 2,634 11.7% Travel 6,321 4,936 6,417 (1,481) (30.0%) Memb., Contrib. & Sponsorships 1,803 1,823 2,092 (269) (14.8%) Interest Expense 8,192 7,665 7,665 0 0.0% Depreciation 30,301 28,257 28,142 115 0.4% Other Expenses/Transfers 118,730 113,557 117,882 (4,325) (3.8%) Total Expenses $519,996 $528,855 $523,747 $5,108 1.0% Operating Increase (Decrease) $13,087 ($8,000) $6,328 $14,328 Modified Cash Flow Operating Increase (Decrease) $13,087 ($8,000) $6,328 $14,328 Plus Depreciation 29,670 28,257 28,142 (115) (0.4%) Less Capital Expenditures & Reserve Funding (24,510) (11,751) (16,216) (4,465) 38.0% Less Debt Service Principal (9,303) (9,208) (9,208) 0 0.0% Net Change in Cash $8,944 ($702) $9,046 $9,748 Reserve Transfer Tuition Mitigation 0 1,011 1,011 0 0.0% Adjusted Net Change $8,944 $309 $10,057 $9,748 Page 5
University of Maine System Unrestricted Annual Operations FY2013 ACTUAL vs. BUDGET ($000's) FY2013 ACTUAL vs. BUDGET FY2012 FY2013 FY2013 VARIANCE ACTUALS BUDGET ACTUAL $ % Revenues UMaine $251,109 $246,706 $249,131 $2,425 1.0% 39,898 38,119 39,787 1,668 4.4% 39,491 39,912 37,667 (2,245) (5.6%) K 11,855 11,905 12,382 477 4.0% UMM 10,387 10,874 10,319 (555) (5.1%) 16,814 15,979 16,528 549 3.4% 138,229 138,101 138,205 104 0.1% System Wide Services 20,944 16,759 16,637 (122) (0.7%) Temporary Investment Income 4,356 2,500 9,419 6,919 276.8% Total Revenues $533,083 $520,855 $530,075 $9,220 1.8% Expenditures (includes capital expenditures utilizing operating funds & Tuition Mitigation) UMaine $246,763 $246,706 $248,234 ($1,528) (0.6%) 38,249 37,935 38,300 (365) (1.0%) 38,524 39,871 37,402 2,469 6.2% K 11,855 11,904 12,382 (478) (4.0%) UMM 10,387 10,874 10,319 555 5.1% 16,394 15,979 16,328 (349) (2.2%) 137,851 138,018 137,803 215 0.2% System Wide Services 19,472 16,759 19,009 (2,250) (13.4%) Temporary Investment Income 2,674 2,500 3,159 (659) (26.4%) Employee Benefits 1,970 0 (2,918) 2,918 % Total Expenditures $524,139 $520,546 $520,018 $528 0.1% Operating Increase (Decrease) & Tuition Mitigation Transfer UMaine $4,346 $0 $897 $897 1,649 184 1,487 1,303 967 41 265 224 K 0 1 0 (1) UMM 0 0 0 0 420 0 200 200 378 83 402 319 System Wide Services 1,472 0 (2,372) (2,372) Temporary Investment Income 1,682 0 6,260 6,260 Employee Benefits (1,970) 0 2,918 2,918 Operating Increase (Decrease) $8,944 $309 $10,057 $9,748 Page 6