ACADEMIC SENATE http://www.csueastbay.edu/senate 510-885-3671 COMMITTEE ON BUDGET AND RESOURCE ALLOCATION 15-16 COBRA 3 March 10, 2016 TO: FROM: SUBJECT: PURPOSE: The Academic Senate The Committee on Budget and Resource Allocation (COBRA) 15-16 COBRA 3: Executive Summary of the University Revenue and Expense Summary by Fund Group Year End June 30, 2015 For Information to the Academic Senate BACKGROUND: Debbie Chaw, VP Administration and Finance/CFO and Darrell Hayden, AVP Financial Services presented to COBRA on January 27, 2016 the university revenue and expense summary for all the fund groups for the fiscal year end on June 30, 2015. 2015-16 COBRA 3 summarizes their presentation on the university revenue and expense for the fiscal year 2014-15. COBRA executive summary highlights the following: 1. A comparison of major revenues (sources) and expenses (uses) for each fund and compares the sources and uses for each fund in the fiscal year 2014-15 with the fiscal year 2013-14. 2. The composition of the major revenues (sources) and expenses (uses) for each fund for 2014-15 fiscal year. ACTION REQUESTED: COBRA s Executive Summary Report is for information to the Academic Senate. 1
COBRA Executive Summary University Revenue and Expense Summary by Fund Group Year End June 30, 2015 Presented by VP/CFO Debbie Chaw and AVP Darrell Hayden to COBRA This is COBRA s executive summary of the report Revenue and Expense Summary by Fund Group, Fiscal Year June 30, 2015 presented by Debbie Chaw, VP Administration and Finance/CFO and Darrell Haydon, AVP Financial Services at the COBRA meeting on January 27, 2016. This executive summary highlights the following: 1. A comparison of major revenues (sources) and expenses (uses) for each of the 7 funds and compares the sources and uses for each fund in the fiscal year 2014-15 with the fiscal year 2013-14. 2. The composition of the major revenues (sources) and expenses (uses) for each fund for the 2014-15 fiscal year. This COBRA report has two parts: 1. COBRA Executive Summary 2. CSU East Bay 2014-15 Financial Review PPT slides by Darrell Haydon. It includes the 2014-15 Revenue and Expense Summary for all university funds. The majority of all the sources of funds and uses in 2014-15 are consistent with those in 2013-14. Most funds have slightly higher sources and higher uses in 2014-15 compared to 2013-14. There was a slight decline in Student Fees due to most of the summer quarter being offered through the University Extension (self-support). The balance or the deficit in each fund reflects the timing difference in funds received from the sources and the actual payment for expenditures based on the budget or contracts. A. Operating Fund: Deficit balance of $332,977 as of 6-30-2015 Sources: The total sources for the operating fund increased in 2014-15 compared to 2013-14. Student fees decreased primarily due to most of the summer quarter being offered through the University Extension (self-support). University Extension reimbursed the university in the amount of $6,990,111 for university provided services. These are shown as an increase in other sources in the operating fund. There was also a slight increase in state appropriation for growth in enrollment. 250 2014-15 Operating Fund - Sources 200 Millions 150 100 50 2013-14 2014-15 0 Total Sources Student Fees State Other Sources Appropriation 1
Sources: Higher education (Student) fees $98,944,636 are 50.1% of the total sources. Expenditure Adjustments (General Fund Appropriations) $76,409,561 account for 38.7% of the total sources of the operating fund. 11.3% operating fund are from other finanicial sources which include miscellaneous service fees, facility rentals, and investment earnings. 2014-15 Operating Fund - Total Sources $197,653,462 Other Sources 11.3% State Appropriation 38.7% Student Fees 50.1% Uses: Total expenses increased in 2014-15 compared to 2013-14 due to increased salaries, benefits, and other operating expenses. 250 2014-15 Operating Fund - Uses 200 Millions 150 100 50 2013-14 2014-15 0 Total Uses Salaries & Wages Benefits Financial Aid Other Operating Expenses 2
Uses: For the total uses of $198,026,381, salaries $99,696,027 and benefits $44,605,311 are 73% of total uses for the Operating Fund. Financial aid expenses that are primarily state university grant tuition discount are 12% of total uses. Other operating expenses $30,001,609 are 15% of total uses. They include utilities, equipment, information technology costs, contractual services, travel, library acquisitions, and other expenses. 2014--15 Operating Fund - Total Uses $198,026,381 Other Operating Expenses 15.2% Financial Aid 12.0% Benefits 22.5% Salaries & Wages 50.3% *The State of California requires the total student tuition $99,686,027 to be reported in gross amounts as sources in operating fund and the financial aid $23,733,434 to be reported as uses in the operating fund. What the university received is the net amount of student fees (total student fees reduced by the financial aid) $75,211,202 ($$99,686,027 - $23,733,434). Using the net student fees received, the total sources are reduced to $173,920,028. The student fees are only 43.2% of total sources while state appropriation is 43.9% and other sources is 12.8% of the total sources (see chart below). Leaving out financial aid in the total uses, the total expenses are $174,292,947. The salaries and benefits are 82.8% of the total expenses and other operating expenses are 17.2% of the total expenses (see chart below). Operating Fund - Total Sources-Net $173,920,028 Other Sources 12.8% Student Fees 43.2% State Appropriation 43.9% 3
Operating Fund - Total Uses - Net $174,292,947 Other Operating Expenses 17.2% Financial Aid 0.0% Benefits 25.6% Salaries & Wages 57.2% B. Housing Fund: Deficit balance of $719,051 on 6-30-2015. Sources: Total revenues increased in 2014-15 compared to 2013-14 due to increased sales and services of auxiliary enterprises and other financial sources. 14 2014-15 Housing Fund - Sources 12 Millions 10 8 6 4 2013-14 2014-15 2 0 Total Sources Sales and Services of Auxiliary Enterprises Other Financial Sources 4
Sources: The total sources for Housing Fund for 2014-15 were $11,779,735 which is slightly above the $11,230,935 in 2013-14. Housing fees $10,626,756 represent 90.2% of all sources. Other financial sources $1,152,979 (9.8%) consist of commissions on the sale of boarding plans, summer program and camp fees, and investment earnings. 2014-15 Housing Fund - Total Sources $11,779,735 Other Financial Sources 9.8% Sales and Services of Auxiliary Enterprises 90.2% Uses: Total expenses for housing fund decreased in 2014-15 compared to 2013-14. Salaries and benefits, utilities, contractual services, capital outlay projects, and equipment group decreased in 2014-15. Services from other funds/agencies and other operating expenses increased. Thousands 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2014-15 Housing Fund - Uses 2013-14 2014-15 5
Uses: For the total expenditures of $7,194,659, other operating expenses are 32%; salaries and benefits 25.5%; services from other funds/agencies (i.e. costs incurred by operating fund for housing costs) 19.7%, utilities 12.4%, and contractual service group 6.9%. $6,886,299 was transferred out to pay for debt service payments for bonds issued to construct housing facilities. 2014-15 Housing Fund - Total Uses $7,194,659 Other Operating Expenses 32.0% Salaries & Wages 17.7% Benefits 7.8% Equipment Group 3.4% Services from Other Funds/Agencies 19.7% Utilities 12.4% Contractual Services 6.9% C. Parking Fund: Balance $1,843,579 on 6-30-2015 Available to fund a new parking garage plan and repair of several existing parking lots. Sources: The total revenues for parking fund slightly increased in 2014-15 compared to in 2013-14. Parking Fund - Sources 5,000 4,500 4,000 3,500 Thousands 3,000 2,500 2,000 1,500 2013-14 2014-15 1,000 500 0 Total Sources Sales and Services of Auxiliary Enterprises Other Financial Sources 6
Sources: 96.8% of the total sources of $4,518,373 is generated from parking revenue and 3.2% is investment earnings. Parking Fund - Total Sources $4,518,373 Other Financial Sources 3.2% Sales and Services of Auxiliary Enterprises 96.8% Uses: The expenses for parking fund increased in 2014-15 compared to 2013-14. The expenses increased in salaries and benefits, capital outlay projects, and other operating expenses. 3,000 Parking Fund - Uses Thousands 2,500 2,000 1,500 1,000 500 0 2013-14 2014-15 7
Uses: For the total uses of $2,674,794, 25.6% is for salaries and benefits, 21% in capital outlay projects, 43.2% in other operating expenses, and 10.2% for services from other funds/agencies. Parking Fund - Total Uses $2,674,794 Salaries & Wages 17.9% Other Operating Expenses 43.2% Capital Outlay Projects 21.0% Benefits 7.7% Services from Other Funds/Agencies 10.2% D. Continuing Education Fund: Balance $3,103,070 on 6-30-2015 Sources: Continuing education collected fees of $24,730,807 and earned $167,861 on investments. Additional service fees totaling $360,720 comprise the remainder of revenue, which totaled $25,259,387 for the fiscal year. 30 Continuing Education Fund - Sources 25 Millions 20 15 10 2013-14 2014-15 5 0 Total Sources Continuing Education Fees Other Financial Sources 8
Sources: For the total sources of $25,259,387, continuing education fees represent 98% of all sources and 2% is generated from other financial sources. Continuing Education - Total Sources $25,259,387 Other Financial Sources 2.1% Continuing Education Fees 97.9% Uses: The increase in the total uses of the continuing education fund are due University Extension reimbursing the university in the amount of $6,990,111 for university provided services and increased salaries and benefits. 25 Continuing Education Fund - Uses 20 Millions 15 10 5 0 YTD 12/13/2014 YTD 12/13/2015 9
Uses: For the total uses of $22,189,849, 40% is for salaries and benefits; 32% was the reimbursement to the university for services provided, and 28% is for other operating expenses, equipment group and capital outlay projects. Transfers in and out of the operating fund net $12,950 while expenditure adjustments totaled $20,583. Continuing Education:-Total Uses $22,189,849 Equipment Group 4.7% Other Operating Expenses 22.6% Salaries and Wages 34.7% Services from Other Funds/Agencies 31.5% Benefits 5.8% Capital Outlay Projects 0.7% E. University Union: Deficit balance of $3,177,700 on 6-30-2015 (This deficit is covered by its fund equity) Sources: The University Union collected student union fees totaling $5,111,535 federal bond subsidies of $398,170 and investment earnings of $42,789 and other financial sources $291,150. Total revenue of $5,843,644 was used to pay $899,588 in salaries, wages, and benefits. Other expenses include equipment purchases of $1,122,619 and other operating costs for the University Union, the Recreation and Wellness Center, and to fund programs held in Union facilities of $3,508,473. 7,000 University Union Fund - Sources 6,000 Thousands 5,000 4,000 3,000 2,000 2013-14 2014-15 1,000 0 Toal Sources Gifts, Grants and Contracts Sales and Services of Auxiliary Enterprises Other Financial Sources 10
Sources: For the total sources of $5,843,644, sales and service are the major revenue source (87.5%) and gifts, grants and contracts including federal bond subsidies are 6.8%. Other financial sources comprise the remaining 5.7%. University Union - Total Sources $5,843,644 Other Financial Sources 5.7% Gifts, Grants and Contracts 6.8% Sales and Services of Auxiliary Enterprises 95% Uses: The total expenses for the university union fund totaled 6,469,991. Expenses increased in all areas of the University Union for 2014-15. In 2014-15 the operational management of the University Union and Recreation and Wellness Center transitioned from Associated Students Inc. to the University. Expenses increased in equipment due to the cost to purchase the capital investments that Aramark made on campus during the last five years. In addition, there were Misc. Operating Expenses due to the reroofing and the replacing of the mechanical system in the Old University Union. Both of these were one-time expenses. University Union Fund - Uses Thousands 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2013-14 2014-15 11
Uses: For the total uses of $6,469,991, salaries and benefits are 13.9%, other operating expenses are 54.2%, equipment expenditures are 17.4% and services from other funds/agencies are 14.5%. There was a transfer out of $2,551,353 to pay for debt service on bonds. University Union - Total Uses $6,469,991 Salaries & Wages 11.0% Other Operating Expenses 54.2% Benefits Group 2.9% Services from Other Funds/Agencies 14.5% Equipment Group 17.4% F. Trust Fund: Deficit balance of $337,578 on 6-30-2015 Sources: The total sources for the trust fund for the fiscal year ended 6-30-2015 were $110,835,863 and consisted of $107,989,217 of federal and state financial aid funds that were disbursed by the campus to students. 120 Trust Fund - Sources Millions 100 80 60 40 20 2013-14 2014-15 0 Total Sources Higher Education Fees Gifts, Grants & Contracts Other Financial Sources 12
Sources: For the total sources of $110,835,863, federal and state financial aid and donor funds collected by the Educational Foundation and transferred to the University for current use represent 97.4% of fund sources. The remaining 2.3% is generated from other financial sources. Trust Fund - Total Sources $110,835,863 Other Financial Sources 2.3% Higher Education Fees 0% Gifts, Grants & Contracts 97.4% Uses: The expenditures for the trust fund for the fiscal year end 6-30-2015 are similar to the same period in 2013-14. Net transfers out of $196,979 were made to other campus organizations and net adjustments of $237,430 resulted in an ending fund deficit of $337,578. Trust Fund - Uses Millions 120 100 80 60 40 20 0 2013-14 2014-15 13
Uses: For the total uses of 110,739,032, federal loans are 53% of fund use, 43.2% is financial aid, 3.7% was used for other operating expenses, and 0.7% for salaries and benefits. Other Operating Expenses 3.7% Trust Fund - Total Uses $110,739,032 Salaries & Wages 0.6% Benefits Group 0.1% Non- Expenditure Disbursement 53.0% Financial Aid 43.2% G. Lottery Fund: Deficit balance of $858,415 on 6-30-2015 Sources: Lottery proceeds are not shown as revenue. Uses: Expenditures from the Lottery Fund of 2,136,415 were driven primarily by library acquisitions of $1,054,695. Lottery proceeds, shown as a transfer in, of $1,483,000 did not fully offset expenditures leaving a fund deficit of $858,415 absorbed by the prior year equity balance. 2,500 Lottery Fund - Uses 2,000 Thousands 1,500 1,000 500 0 2013-14 2014-15 14
Uses: For the use of $2,136,415, library acquisitions represent 49.4% of fund use; equipment group 21.3%; contractual services group 10.4%; and other operating expense make up the remaining 13%. Lottery Fund - Total Uses $2,136,415 Other Operating Expenses 13.0% Equipment Group 21.3% Contractual Services Group 10.4% Library Acquisitions 49.4% Grand total of All Funds: Deficit balance of $479,071 on 6-30-2015 Millions 400 350 300 250 200 150 100 50 0 All Funds - Total Sources 2013-14 2014-15 15
Sources of All Funds: For the total sources of $355,890,465, higher education fees are 27.9% of total sources of all funds, state appropriations 21.5%, gifts, grants and contracts (federal loans and financial aid) 30.5%, continuing education 6.9%, sales and services of auxiliary enterprise 5.7% and other financial sources 7.6%. Total Sources $355,890,465 Other Financial Sources 7.6% Sales & Services of Auxiliary Enterprise 5.7% General Fund Appropriations 21.5% Gifts, Grants & Contracts 30.5% Higher Education Fees 27.9% Continuing Education Fees 6.9% Uses of all funds: Total uses are higher in the first half year in 2014-15 compared to the same period in 2013-14. All Funds - Total Uses Millions 400 350 300 250 200 150 100 50 0 2013-14 2014-15 16
Uses of All Funds: For the total uses of $349,431,120, salaries and benefits are 45.1%, financial aid 20.5%, nonexpenditure disbursement of federal loans 16.8% and other operating expenses are 10.2%. Equipment Group 1.6% Services from Other Funds 2.9% Contractual Service Group 1.4% Non- Expenditure Disbursement 16.8% Total Uses $349,431,120 Other Operating Expenses 10.2% Financial Aid 20.5% Salaries 31.7% Capital Outlay Project 0.4% Benefits Group 13.4% Utilities 1.1% 17