ASL Budget Forum Nov 21, 2016 Todays Agenda How we are organized - - PowerPoint PPT Presentation

ASL Budget Forum

Nov 21, 2016

Today’s Agenda

• How we are organized
• CWU funding source overview
• Foundation as a source of funds
• All about reserves
• CWU spending overview
• How is this year going?
• Current ABB Model overview
• Known limitations
• Questions/Comments

How We Are Organized (ASL)

• 1. AC

ACAD ADEMIC & STUDENT LIFE The Four Colleges College of Arts & Humanties College of Education & Prof. Studies College of Business College of the Sciences Ac Academic Support Provost's Office University Centers Associate Provost's Office Grad Studies & Sponsored Research Library International Student Programs Student Success INSTITUTIONAL AL OVE VERHEAD AD

• 2. President's Division
• 3. Operations Division
• 4. Enrollment Mgmt Division
• 5. Bus & Fin Af

Affairs Division

• Five Divisions (in blue)
• Same across all funding

types, including Foundation

• Overhead = not self

supporting (mostly)

How We Are Organized (Overhead)

• 1. AC

ACAD ADEMIC & STUDENT LIFE INSTITUTIONAL AL OVE VERHEAD AD

• 2. President's Division

President's Office Athletics Inclusivity/Diversity Public Affairs University Advancement

• 3. Operations Division

Operations Office Facilities Human Resources Information Services Police & Parking Institutional Effectiveness

• 4. Enrollment Mgmt Division

Student Financial Services Enrollment Management

• 5. Bus & Fin Af

Affairs Division Bus & Fin Affairs Office Financial Planning & Analysis Finance & Business Auxiliaries

• Five Divisions (in blue)
• Same across all funding

types, including Foundation

• Overhead = not self

supporting (mostly)

The “Color of Money” Matters

CWU funding sources

117,628 26,276 13,157 47,172 48,800 70,016

State/Tuition Summer/Fees Student Activ. Auxiliaries Grants Capital Internal Service Other

FY17 Revenues in Thousands Government

Federal & State

Students

Tuition & Fees

Continuing Shades of Color

Summer and other Fees

8,585 3,285 3,678 1,094 2,423 1,813 5,371 LOCAL 148 INDIRECTS

• UNR. FEES

COURSE FES MANDATORY FEES Unrestricted Fees

• Summer camps
• UESL
• Study Abroad
• Registrar

Indirects

• Grants

Mandatory Fees

• Athletics
• Health Center
• Wellness
• Learning Commons

Summer Cont Ed

Misc Fees

Course Fees

• Consumables
• Technology
• Travel, etc.

FY17 Revenues in Thousands

Foundations – WA State Universities

WSU WWU UW CWU TESC EWU 472,815 74,502 2,428,058 24,601 14,733 24,792

Total Net Assets 2015 (In Thousands)

22,625 1,975

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

WWU CWU EWU TESC

Restricted Unrestricted

Benchmarking WA Universities

Unrestricted Reserves

23% 21% 28% 19% 48% 17% 19% 19% 12% 34%

• 10%

0% 10% 20% 30% 40% 50% 60%

WSU WWU UW CWU TESC EWU

% of Op Revenue % of Op Expense

WSU WWU UW CWU TESC EWU (7,461) 47,023 869,120 41,269 11,744 74,733

Unrestricted Net Position (In Thousands)

Rating Agency Opinion

• CWU Operating Reserve Ratio = .3
• Moody’s Median = .7

Credit Challenges: “Thin reserves relative to operations; spendable cash and investments covered expenses a low 0.3 times in FY 2015” “Spendable cash investments, which also remained flat between FY2011-15, covered operations a thin 0.3 times in FY 2015, well below the median of 0.7 times for A1-rated public universities.”

CWU Reserves

By Fund Group (in Millions)

$7.06 $2.94 $8.23 $2.51 $6.49 $18.36 $8.42 $10.80 $1.86 $26.19 (30) (20) (10)

• 10

20 30

State/Tuition Summer/Fees Auxiliaries Student Activities Internal Service Pension Liability

Millions

Committed Available

FY16 Carryforward Balances: CAH $110K COTS $110K CEPS $ 19K CB $158K Provost $159K President $ 97K Remaining $5.8M

Where the Money Goes

NACUBO Spend Categories – provides common classification for comparison

Instruction Research Academic Support Public Service Student Services Institutional Support Facilities Student Aid Auxiliary Depreciation

Academic Expenses

Instruction: Expenses related to credit and noncredit courses, academic, vocational, technical instruction, remedial, special and extension sessions. Research: Expenses related to institutes and research centers, and individual and project research expenditures for activities specifically

• rganized to produce research outcomes

Academic Support: Expenses related to support services for the institution's primary missions (instruction, research, public service). This includes: Libraries, Grad Studies, Educational media services, Academic computing support, Ancillary support, Academic administration, Museums & Galleries, Educational Media Services, and Course and curriculum development.

IPEDS Benchmarking

44% 44%

43%

42% 41% 29% 55% 32% 40% 39% 40% 39% 36% 44% 39%

40%

38% 42% 40% 46%

45%

A B CWU C D E F G H I J K L M N EWU O P Q R WWU

% of Total Expenses Spent on Academic Spend Types (2013-14) 20 Peer Institutions

2013 Academic Expenses 2013 Total Operating Expenses % Academic

*IPEDS data 2013 -

CWU EWU WWU

Spending Patterns Steady

44.4% 10.2% 20.3% 25.1% 44.0% 9.3% 18.4% 28.3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Academic Institutional Support Auxiliary Other

Total Spending 2004 vs. 2016

2004 2016

All Categories vs. Peer Avg

2014

Peer Average CWU Instruction 35% 37% Research 2% 1% Academic Support 8% 6% Public Service 3% 1% Student Services 8% 5% Institutional Support 10% 9% Facilities 5% 6% Student Aid 7% 6% Auxiliary 14% 21% Other 2% 0% Depreciation 6% 8% 100% 100%

FY17 Outlook – Tuition Revenue

3 Academic Terms

Student Type Budget Actual Variance New Students 1751 1903 152 Resident UG 9857 9609

• 248

Non-Resident UG 864 861

• 3

Resident Grad 385 399 14 Non-Resident Grad 129 133 4

Headcount - Fall 16 Student Type Budget Actual Variance Resident Undergrad 14,814,667 15,425,820 611,154 Non-Resident Undergrad 3,500,288 2,730,086 (770,202) Resident Grad 586,411 625,558 39,147 Non-Resident Grad 254,773 273,467 18,694 Total 19,156,139 19,054,931 (101,208) Net Tuition - Fall 16

• Great New Student Numbers
• Transfers flat
• Retention down slightly
• Net Result – 233 fewer than budget
• Resident Waivers down 10%,

Tuition down 15%

• International waivers up $1M

since 2014, headcount down

• Net Result - $100K less net

tuition than expected fall quarter = $300K full year

RCM & ABB

Primary Decision Makers: Provost & Deans

• 1. AC

ACAD ADEMIC & STUDENT LIFE The Four Colleges College of Arts & Humanties College of Education & Prof. Studies College of Business College of the Sciences Ac Academic Support Provost's Office University Centers Associate Provost's Office Grad Studies & Sponsored Research Library International Student Programs Student Success INSTITUTIONAL AL OVE VERHEAD AD

• 2. President's Division
• 3. Operations Division
• 4. Enrollment Mgmt Division
• 5. Bus & Fin Af

Affairs Division

Primary Decision Makers: President & Vice Presidents

Current ABB Model

• 1. Pay Overhead (academic support +

institutional support) expenses first – not an

• verhead rate
• 2. Remaining revenues shared by four colleges

based on allocation formula:

• 80% Student Credit Hours
• 10% Majors
• 5% Pre-majors
• 5% Graduation Ratio
• 3. Create Expense Budgets

Rolling three year average

ASL Revenue

ABB Model Output

All ASL

Provost Subvention

Colleges

Dean Subvention

Departments

ABB Budget

Responsibility Centered Management (RCM)

Subvention Process

Some Known Issues

• 3 Year Rolling average
• Intended to protect in downturn, takes too long in growth
• Can encourage silos
• Rearranging the deck chairs
• May not reward investments in new programs
• Not enough direct linkage between programs and SCH

What Else?