Board of Trustees
Financial Workshop
December 2, 2013
Page 1
INTRODUCTION
Page 2
UNCW Guiding Principles
We are committed to the university’s financial integrity by providing
quality, efficient service to the students, faculty and staff. Our mission is
to record, report and safeguard the fiscal assets of the university.
Maintaining an effective system of internal controls and compliance
mechanisms is accomplished through comprehensive policies, procedures,
campus-wide training and supporting a knowledgeable and skilled staff.
Page 3
UNCW Environmental Scan/Overview
Strengths & Opportunities
+ Diverse & growing revenue sources
• Distance Ed
• Auxiliaries
• MARBIONC
+ Healthy liquidity
+ Membership in UNC system & history
of state support
+ Well-managed and growing
endowment
+ Strong controls & planning processes
+ Solid student demand & enrollment
trends
+ Commitment to innovation
+ Exceptional compliance record &
unqualified audit opinions
Weaknesses & Challenges
₋ Continuous need to grow revenues
• Endowment
• Federal contracts & grants
₋ Relatively high level of debt
₋ Dependence on state funding
₋ Legislative mandates
₋ Tuition sensitivity
₋ Financial aid resources
₋ Aging plant (~11 years) & potential
future capital/maintenance needs
Page 4
Agenda
Financials
• Credit Rating
Agencies & Debt
Management
• Higher Education
Financial
Statements
Budgeting
• Budget Process
Funding
• Enrollment Growth
Funding
• Appropriations,
Tuition & Student
Fees
Page 5
Financials
Budgeting
CREDIT RATING AGENCIES AND
DEBT MANAGEMENT
Funding
Page 6
Rating Process
•
•
•
•
•
•
•
•
•
•
Most rating agencies follow standard criteria and are required to provide this information
publicly.
Criteria is required to be transparent so that an experienced analyst could come within a
category of the rating.
Many will also share financial ratios and other qualitative information with prospective
rated institutions.
The ratios are updated each year.
Moody’s issues ratios with a higher degree of rating specificity (by specific rating) than
S&P (which prepares ratios by rating category)
Different rating agencies do not always assign the same ratings to the same institutions.
Ratings are generally assigned to securities rather than institutions, especially for public
universities.
Moody’s publishes a quantitative scorecard to increase the transparency of the
methodology.
S&P is less formulaic but still focuses on the same factors and uses similar ratios.
However, each rating agency may place different weights on the factors and ratings are
not always the same.
Page 7
Moody’s Higher Education Scorecard
Areas of Emphasis
Moody's Higher Education
Scorecard
Demand or Market Position
enrollment, selectivity, student quality,
yield, competitive position, student
charges, and geographic diversity
Management
governing structure, ability to respond to
change, strategic plans, debt policies, and
budgeting practices
Finance
revenue diversity, operating performance,
financial resources (largely through
unrestricted net position, endowment
spending policies, operational liquidity,
and coverage of variable rate debt from
liquidity)
Debt
annual debt burden, maximum debt
burden, debt structure, repayment
method
Section 1: Quantitative Factors
Operating Revenues
>
10%
Net Tuition/Student
>
>
>
>
10%
>
10%
Av DS Coverage
>
10%
Operating Cash Flow
Margin
Debt to Op. Revenues
>
10%
>
5%
Total Cash + Inv
>
10%
Exp. Res. to Debt
Mon. Days Cash on Hand
Exp. Res. to Operations
Liquidity to Demand Debt
>
>
>
>
5%
5%
5%
5%
Selectivity
Matriculation
Av Gifts Per Student
Rev Diversity (Max.
Single Contribution)
5%
5%
5%
Factor 1: Market Postion 35%
Factor 2: Operating
Performance - 30%
Factor 3: Balance Sheet +
Capital Investment: 35%
Section 2: Qualitative Factors
Leadership and Senior
Short- and Long-term Planning
Management
External Disclosures and
Self-assessment and Benchmarking
Internal Controls
Government and Stakeholder Relations
Interest rate, Counterparty and Refinancing Risk
Borrowing Terms and Covenants
Legal Security and Other Bondholder Protections
Multi-year Trends
Healthcare Exposure (for Colleges with medical schools)
Marketable Real Estate
Event Risk
Other Factors
Factor 4: Governance and
Management
Factor 5: Debt Structure
and Legal Covenants
Other Factors
Page 8
Top Causes of Rating Changes
Upgrade Drivers
•
•
•
•
•
•
•
Steady improvement in demand,
increasing selectivity, matriculation
rates, student quality & geographic
diversity
Ability to raise tuition & fees
Consistently strong financial
performance
New schools or programs
Major, transformational gifts
Long history of operating surpluses
Clear ability to manage with surprises
& maintain strategic plans and
budgets
Downgrade Drivers
•
•
•
•
•
•
•
•
•
•
•
•
Sharp increase in debt
Operating deficits
High endowment spending levels (>8%)
Significant debt structure risks
Management concerns
Declines in net tuition revenue or sense that
tuition revenue growth is impaired
Steep reduction in applicants or new freshmen
Drop in expendable resources or unrestricted net
position compared with operating expenses or
debt
Sharp drop-off in state appropriations - not offset
by reduced operating expenses or revenue
increases in other areas
Limited cash/liquidity compared with accounts
payable & near-term debt payments
Fewer than 700 students & accreditation issues
New debt with no visible source of payment
Page 9
S&P 2013 COPs Rating Rationale
Strengths
•
•
•
•
•
Solid debt service coverage (DSC)
Strong housing system demand and occupancy
Managerial/financial commitment to student housing
Favorable overall student demand trends
Operating support from State of North Carolina
Challenges
•
•
•
Below average financial resources in terms of net position
relative to operating expenses and outstanding debt
Above-average total debt burden
Relatively small endowment
Factors that could make the rating go Up/Down
•
•
Up: Continued strong student & housing demand trends;
improved financial resources; increasing housing system DSC
Down: Reduced state support; Additional debt inconsistent
with financial resource growth or revenues; decreasing
housing system DSC
Certificates of Participation
S&P
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBNon Investment Grade
Page 10
Moody’s December University Rating Review
2010 Rating Rationale
Strengths
•
•
•
•
Solid student demand and growing enrollment trends
UNC System membership
Healthy liquidity profile
Solid regional market position / Strong student demand
Challenges
•
•
High leverage
State funding cuts
Factors that could make the rating go Up/Down
•
•
Up: Growth in financial resources, improvements in
scope of research activities & student market position;
cash flow improvement
Down: Reduced state support; Decline in student market
position; Weakened Debt Service Coverage
General Revenue Bonds
Moody's
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Non Investment Grade
Certificates of Participation
Moody's
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Non Investment Grade
Page 11
Moody’s 2012 Ratings
Best
A3
UNCW
ASU
FSU
UNCP
WCU
UNCSA
ECU
ECSU
NCA&T
NCCU
NCSU
UNCA
UNCCH
UNCC
UNCG
WSSU
A2
A1
Aa3 Aa2 Aa1 Aa
Page 12
Debt Profile
$20,000,000
University of North Carolina Wilmington
All Outstanding Debt Service
$18,000,000
$16,000,000
Aggregate Debt Service
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
GESC
COPs
University
Page 13
Debt Analysis
Improving Trends
$300
0.90x
Total Debt ($ Millions)
UNCW Expendable Resources to Debt*
0.83x
Moody's A1 Median
$250
0.80x
254.2
0.79x
0.72x
$200
0.71x
239.6
248.3
0.70x
0.70x
233.4
197.8
0.60x
$150
140.7
0.50x
$100
0.38x
0.31x
$50
0.31x
0.27x
0.28x
0.30x
0.40x
0.30x
$0
0.20x
FY 2008
FY 2009
* Moody’s Calculation except FY13.
FY 2010
FY 2011
FY 2012
FY 2013
Page 14
Financials
Budgeting
HIGHER EDUCATION FINANCIAL
STATEMENTS
Source: Adapted from UNC Campus Financials 101, Sept. 12, 2013. Charlie Perusse, Stathis Poulos, Rick
Niswander and Mary Peloquin-Dodd.
Funding
Page 15
Primary Campus Uses of the Consolidated
Financial Statements
The consolidated UNCW financial statements are mainly used for:
•
•
•
•
•
•
State of North Carolina Consolidated Financial Reporting
Rating Agencies
Lenders, Bond Trustees
Providing “factoids”
Looking at trends from the 40,000-foot level
Regulatory Disclosures
•
•
•
•
•
•
•
•
•
NC Office of State Controller
NC Office of State Budget Management
NC Office of State Treasurer
NC General Statutes
NC Government
NC Auditor
Internal Revenue Service
NC Department of Revenue
NCAA
Page 16
Limited Flexibility
Unlike many business entities, university dollars are not fungible.
• Legal, regulatory & good business practices prevent movement between
categories
• Revenues, expenses and other sources of funds are tracked for defined purposes
Examples
•
•
•
•
•
•
•
•
•
•
Donors make gifts that can only be used to fulfill the intent of the donor
Housing receipts should not be used to pay for Administration Assistants in the English
Department
State Appropriations cannot be used to pay for housing
Tuition supports student instruction
Parking receipts fund reserves to repave lots and construct decks
Federal or state scholarship funds can only be used for that purpose by law
State R&R funds can only be used for that purpose
Bond proceeds used for intended purpose
Mandatory fees support stated purpose (athletic fee for athletic department)
Summer school revenue for summer school expenses
Page 17
Limited Flexibility
Diverse Set of Business Lines
• Profit-motivated components, educational components, research components,
community services
• Significant legal and operational restrictions on how business is conducted
• Debt restrictions
• GASB accounting (vestiges and real)
• Detailed compliance reporting to multiple state and federal agencies
• Multiple approval levels
• Special duties to students, parents and donors
Business runs on the cash basis, not accrual basis
• Twelve month budget cycle – timing is critical, e.g. spend it or lose it
• Unexpended carryover of State Funds limited to 2.5% of operating funds
• Cash requirements requisitioned from State Treasurer, not managed locally
Page 18
Key GASB Higher Ed Accounting Practices
Management Discussion & Analysis
• Precedes the basic financial statement and is required to include certain information
prescribed by GASB, dual column comparison of year over year
Basic Financial Statements – Industry nomenclature and single column
• Balance Sheet – Statement of Net Position (formerly Statement of Net Assets)
• Assets, Liabilities, & Net Position
• Income Statement – Statement of Revenues, Expenses and Changes in Net Position
• Revenue, Expenses, Other Changes/Adjustments
• Statements of Cash Flows
• Cash flows are required to be summarized by operating, investing, capital and related
financing, and noncapital financing uses
Discreetly Presented Component Units
• Most University affiliated foundations are presented in the financial statements
Notes to Financial Statements
• Deposit and investment risks disclosures (credit risk, concentration risk, interest rate risk)
including the organization’s policies regarding such risks, are required
Key GASB Higher Ed Accounting Practices
Page 19
(Income Statement)
UNCW
Year Ended June 30, 2012
Statement of Revenues, Expenses & Changes in Net Position (SRECNP)
REVENUES
Operating Revenues:
Student Tuition and Fees, Net (Note 9)
Federal Grants and Contracts
State and Local Grants and Contracts
Nongovernmental Grants and Contracts
Sales and Services, Net (Note 9)
Interest Earnings on Loans
Other Operating Revenues
Total Operating Revenues
$86,526,202
12,144,343
1,035,091
791,931
41,194,644
73,678
3,886,788
145,652,677
EXPENSES
Operating Expenses:
Salaries and Benefits
Supplies and Materials
Services
Scholarships and Fellowships
Utilities
Depreciation
Total Operating Expenses
Operating Loss
150,205,408
18,267,194
46,134,350
16,526,443
6,770,663
14,120,071
252,024,129
(106,371,452)
NONOPERATING REVENUES (EXPENSES)
State Appropriations
Noncapital Grants - Student Financial Aid
Noncapital Gifts, Net (Note 9)
Investment Income (Net of Investment Expense of $170,982)
Interest and Fees on Debt
Federal Interest Subsidy on Debt
Other Nonoperating Expenses
Net Nonoperating Revenues
Income Before Other Revenues
Capital Grants
Additions to Endowments
Increase in Net Assets
91,313,397
22,728,974
4,893,475
2,862,924
(11,917,022)
760,163
(3,443)
110,638,468
4,267,016
21,726,855
2,718,447
28,712,318
NET ASSETS
Net Assets - July 1, 2011
370,983,978
Net Assets - June 30, 2012
399,696,296
•
Equivalent to the “income statement” for a for-profit entity
•
Expenses can be presented in either the natural or functional
presentation
•
There are no prescribed expense allocations
•
Net investment income and realized gains/losses are required to be
presented as a single non-operating financial statement account on
the statement of activities.
•
Gifts are recognized when received and eligibility requirements
have been met (not when gift is pledged by donor)
•
No requirement to use restricted funds first
Page 20
Sources of Revenues
2012 Revenue by Source $292,657
($ Thousands)
Sales & Services, Net
41,195 (14%)
Capital/Noncapital Grants
$44,456 (15%)
State Appropriations &
State Aid
$91,313 (31%)
Investment Income
$2,863 (1%)
Noncapital Gifts, Net
$4,893 (2%)
Other
$14,304 (6%)
Non-Federal Grants &
Contracts
$1,827 (1%)
Other Revenues
$4,721 (2%)
Federal Grants & Contracts,
$12,144 (4%)
Additions to Endowments
$2,718 (1%)
Student Tuition & Fees, Net
$86,526 (29%)
Page 21
Top Sources of Revenues
Top UNCW Revenue Sources
FY10
State Appropriations
FY11
FY12
$90,220,051
$89,349,941
$91,313,397
Tuition
44,022,570
50,161,118
54,379,222
Sales & Services
Residence Life
Dining
Other Auxiliary Enterprises
Education & Related Activity Sales
Total Sales & Services
18,048,402
10,053,924
6,112,701
3,549,396
37,764,423
18,670,602
10,707,694
6,024,853
4,028,211
39,431,360
19,831,141
11,317,318
5,152,710
4,893,475
41,194,644
Fees
27,590,793
30,445,484
32,146,980
Grants & Contracts
18,559,457
17,030,901
13,971,365
Page 22
Research Revenue
Grants & Contracts Revenue 2004-2013
(Includes Noncapital Grants - State Passthrough for 2009 - 2013)
45
40
State Passthrough
Grants & Contracts
35
10.0
9.9
8.0
32.2
$ Millions
30
8.5
9.0
30.4
28.7
25
25.8
24.0
20
20.9
21.3
21.8
2006
2007
23.2
20.5
15
10
5
2004
2005
2008
2009
2010
2011
Year
State Passthrough is the amount of non-capital state grants that offset
certain educational scholarship awards such as the NC Education Lottery
Scholarship Program and UNC Need Based Aid.
2012
2013
Page 23
Research Revenue
Facilities & Administrative Indirect Costs
$3,000,000
$2,500,000
$2,481,861
$2,474,509
$2,149,163
$2,000,000
$1,740,818
$1,600,000
$1,500,000
$1,000,000
$500,000
$0
2009-10
2010-11
2011-12
2012-13
2013-14
Projected
Page 24
UNCW Expenses
2012 Expense by Nature $263,943
($ Thousands)
Supplies and Materials
$18,267 (7%)
Services
$46,134 (17%)
Scholarships and
Fellowships
$16,526 (6%)
Salaries and Benefits
$150,205 (57%)
Utilities $6,771 (3%)
Depreciation $14,120 (5%)
Interest $11,917 (5%)
Other $3 (<1%)
Page 25
UNCW Statement of Revenues, Expenses &
Changes in Net Position
(Dollars in Thousands)
$300,000
11,952
$250,000
$200,000
4,891
$19,945
24,445
$28,712
$7,127
$122,572
Increase in Net
Position
$110,638
$119,151
Operating Expenses
$150,000
$254,608
$246,624
$252,024
$100,000
$129,709
$140,028
$145,653
$50,000
$0
2010
2011
2012
Capital Gifts, Grants
& Endowment
Non-Operating
Revenue
Operating Revenue
Key GASB Higher Ed Accounting Practices
Page 26
(Balance Sheet)
UNCW
Year Ended June 30, 2012
ASSETS
Current Assets:
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Receivables, Net (Note 4)
Due from State of North Carolina Component Units
Inventories
Notes Receivable, Net (Note 4)
Total Current Assets
Noncurrent Assets:
Restricted Cash and Cash Equivalents
Receivables, Net (Note 4)
Endowment Investments
Deferred Charges
Notes Receivable, Net (Note 4)
Capital Assets - Nondepreciable (Note 5)
Capital Assets - Depreciable, Net (Note 5)
Total Noncurrent Assets
Total Assets
Statement of Net Position:
$74,411,120
21,871,785
3,861,541
103,154
394,183
559,607
• Equivalent to the “balance sheet” for a for-profit entity
• Current and noncurrent classifications are required
• Consider notes to the financial statements (i.e. receivables, capital
101,201,390
Assets
31,577,332
135,573
60,749,814
3,538,509
5,653,449
66,501,850
418,198,314
Total Current Liabilities
Noncurrent Liabilities:
Funds Held for Others
U. S. Government Grants Refundable
Long-Term Liabilities (Note 7)
Total Noncurrent Liabilities
Total Liabilities
•
Capital Assets
• Intangible assets are required to be presented within capital
assets
• When significant, non-depreciable capital assets are to be
presented separately
Federal Perkins Loan amounts due from borrowers are
recognized as notes receivables
•
586,354,841
687,556,231
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities (Note 6)
Due to Primary Government
Deposits Payable
Unearned Revenue
Interest Payable
Long-Term Liabilities - Current Portion (Note 7)
assets, long-term liabilities, etc.)
Liabilities
•
10,837,251
1,278,984
1,197
4,391,126
2,087,037
6,254,632
24,850,227
7,519,167
4,392,778
251,097,763
263,009,708
287,859,935
•
•
Amounts payable from restricted assets are generally
separately disclosed
Federal portion of Federal Perkins Loans is recognized as a
liability
Gifts received before all eligibility requirements have been fully
met are recognized as a liability
Page 27
Key GASB Higher Ed Accounting Practices
UNCW
June 30, 2012
Statement of Net Position (cont.):
NET POSITION
Invested in Capital Assets, Net of Related Debt
Restricted for:
Nonexpendable:
Scholarships and Fellowships
Research
Endowed Professorships
Departmental Uses
Loans
Expendable:
Scholarships and Fellowships
Research
Endowed Professorships
Departmental Uses
Loans
Debt Service
$
24,575,907
2,309,027
12,724,767
17,820,314
1,109,745
3,771,311
41,382
830,546
7,962,675
335,656
900,227
Unrestricted
Total Net Position
267,350,758
59,963,981
$
399,696,296
Net Position
•
•
Focus on unrestricted net position
Unrestricted net position designated for specific use are not
permitted to be presented separately from undesignated
unrestricted net position
Page 28
UNCW Statement of Net Position
formerly Statement of Net Assets
(Dollars in Thousands)
$800,000
Total Assets
Total Liabilities
Net Position
$700,000
$600,000
$287,860
$288,832
$500,000
$262,755
$400,000
$300,000
$200,000
$687,556
$659,816
$613,794
$370,984
$351,039
$399,696
$100,000
$0
2010
2011
2012
Page 29
Net Position
UNCW Net Position
FY10
$229,927,613
FY11
$247,002,288
FY12
$267,350,758
Restricted Nonexpendable
45,056,161
55,771,543
58,539,760
Restricted Expendable
22,801,543
15,518,651
13,841,797
Unrestricted
53,254,086
52,691,496
59,963,981
$351,039,403
$370,983,978
$399,696,296
$19,944,575
$28,712,318
Invested in Capital Assets, net of related debt)
Change in Net Assets
Page 30
Unrestricted Net Position Defined
• Net Position that is not subject to externally imposed stipulations
• Externally imposed stipulations include stipulations made by:
• Root Source of Funds (creditors, grantors, contributors)
• Laws or regulations of other governments
• Imposed by law through constitutional provisions or enabling legislation
• Includes net position that has been internally designated (defined on next slide)
• Unrestricted net position is generally derived from (not all inclusive): student
tuition and fees, auxiliary enterprises, gifts, interest income, and royalties.
Page 31
Unrestricted Net Position Considerations
• Internally Designated Net Position – Defined
•
The designation is required to be expressed by (1) the institution itself or (2) a body
(e.g., a budget or finance committee) or official to which the institution has delegated
the authority to assign amounts to be used for specific purposes
The designated funds represent planned actions and not actual commitments
The designation can be subsequently modified or removed
•
•
•
As universities have numerous programs and initiatives to accomplish their missions to
educate the public, they tend to have more types of internally designated net position
than other organizations to meet the objectives of each program and initiative. Examples
include:
•
•
•
•
•
•
•
•
Academic programs
Research programs
Institutional
advancement
Student housing
Health system
Administration
Capital projects
Athletics programs
•
•
•
•
•
•
•
•
Human resources
Information technology
Recreational programs
Libraries
Art programs
Alumni relations
Student relations
Patient relations
•
•
•
•
•
•
•
Marketing
Trademarks and Patents
Royalties
Fundraising
Legal matters
Accreditation matters
Federal, state and other
compliance
Page 32
Unrestricted Net Position
•
•
•
Unrestricted Net Position does not equal “Cash”
Operationally a collection of Semi-Autonomous Business Units
“Each boat floats on its own bottom”
Unrestricted Net Assets
Unrestricted Trust
Overhead
Housing
Union
Food Service
Rec Ctr/Intramurals
ITSD Communications
Ed & Tech Fees
Other
Total
FY10
FY11
FY12
22,155,528
2,226,890
10,072,185
6,298,849
3,632,825
2,024,614
1,141,494
5,701,701
53,254,086
20,941,901
2,934,972
7,961,205
8,492,115
3,701,644
2,842,151
1,512,948
4,304,560
52,691,496
22,459,071
3,016,650
9,902,431
10,679,402
3,947,561
3,661,119
1,628,791
4,668,956
59,963,981
* Prior to FY12 Ed & Tech Fees were considered General Funds.
FY13
(preliminary)
24,364,679
2,639,248
9,710,320
15,066,414
3,717,953
3,283,614
1,794,360
1,602,820
8,730,915
70,910,321
Page 33
Unrestricted Net Position
Moody’s 2012 Data
0.50x
.44x
Moody’s
Medians
Aa3 - 0.48x
A1 - 0.42x
0.40x
0.30x
.31x
.25x
.30x
.24x
0.20x
.16x
.17x
.13x
0.10x
.12x
.03x
0.00x
UNCW
ASU
UNCP
Unrestricted Net Position to annual operating expenses
FSU
WCU
Unrestricted Net Position to current total debt
Aa3 - 0.27x
A1 - 0.28x
Page 34
UNCW Environmental Scan/Overview
Strengths & Opportunities
+ Diverse & growing revenue sources
• Distance Ed
• Auxiliaries
• MARBIONC
+ Healthy liquidity
+ Membership in UNC system & history
of state support
+ Well-managed and growing
endowment
+ Strong controls & planning processes
+ Solid student demand & enrollment
trends
+ Commitment to innovation
+ Exceptional compliance record &
unqualified audit opinions
Weaknesses & Challenges
₋ Continuous need to grow revenues
• Endowment
• Federal contracts & grants
₋ Relatively high level of debt
₋ Dependence on state funding
₋ Legislative mandates
₋ Tuition sensitivity
₋ Financial aid resources
₋ Aging plant (~11 years) & potential
future capital/maintenance needs
Page 35
Financials
BUDGET PROCESS
Budgeting
Funding
Page 36
Background
• UNCW operates on the State of North Carolina biennial budget cycle
• The university conducts “budget calls” for eight (8) different budget cycles
• Externally managed:
– Office of State Budget and Management (OSBM)
– UNC General Administration
• Internally Managed:
– University Budget Office
• constant external budget compliance and reporting responsibilities
• designed around these external requirements
Page 37
Background
External Budget Cycles
Internal Budget Cycles
•
•
•
•
•
•
•
•
•
Biennial Continuation Budget
Biennial Expansion Budget
Biennial Capital Budget
Supplemental Budget (mid
term submission)
Campus Initiative Tuition
Increases (CITI)
Mandatory & Non-Mandatory
Student Fees
Summer School Rate Increases
Enrollment Projections
•
•
•
•
University Annual Allocation
Budget
Special Funds Budgets
Faculty and EPA Legislative Salary
Increases
SPA Legislative Salary Increases
Facilities & Administration
Receipts (Overhead)
Page 38
Background
• The campus community submits budget requests appropriate for each
budget call
• Multiple processes restrict our ability to link comprehensive allocation
decisions to any one program initiative
• The fragmented nature limits our creativity and collaboration among
departments, schools and divisions
Page 39
Unified Budget Process
• A unified budget process, responsive to university strategic
initiatives, promotes our shared values and encourages
collaboration and creativity
NOTE:
None of our external compliance and reporting responsibilities will
go away.
Align our work to accommodate our internal plans while still meeting
all of our external obligations
Page 40
Year 1 of Budget
Development Cycle
Year 2 of Budget
Development Cycle
FY 2013-14
FY 2014-15
 University Planning - identifies strategic priorities for biennium
 Budgetary Programming - works w/campus to identify programs to meet
strategic direction
 UIC proposes new initiatives that support strategic priorities
 Budgetary programs reviewed / analyzed by Budget Office / UBC - finalize
program budgets
 University Analytics team provides analysis to support
discussions
 Budget Office / UBC identify alternative sources of revenue to
meet decisions
 Cabinet / Chancellor review / prioritize budget requirements
 Enrollment Management Committee develops enrollment
projections
 Cabinet / Chancellor approve enrollment projections
Annual Allocations (Permanent + One-Time Funding)
Biennal Budgets (Continuation, Expansion, Capital)
Enrollment Growth Projections
Campus-Initiated Tuition Increases
Student Fees
Special Funds (Receipt-supported) Budgets
Summer School Increases
Supplemental Budget (2nd Year of Biennial Cycle)
Mid-Year Adjustments < One-Time Allocations >
Ready to
implement by
7/1/13
JUNE
MAY
APRIL
FEB
JAN
DEC
NOV
OCT
AUG
SEPT
JULY
MAY
FEB
MARCH
JAN
MARCH
Calendar year
2015
Calendar year 2014
DEC
NOV
OCT
AUG
SEPT
JULY
Calendar year
2013
JUNE
FY 15 - 17 Biennial Budget
APRIL
University Planning, Programming & Budget Calendar
Page 41
DEFINITION:
“a budget in which the resources
and services are identified by
programs or function and not by
the organizational units involved in
performing all or part of the
program and/or “functions”
Budgetary
Strategic
Planning
Campus identifies
strategic priorities for
biennium.
Ongoing initiatives are
evaluated.
University Analytics
team provides
analysis to support
discussions and
quantify the goals
Programming
Working directly with
deans and division
directors
Sets out to identify those
programs necessary to
meet the strategic
priorities
Evaluate
Approve
External
Compliance
Budget Analysis
Budget Office /
University Budget
Committee (UBC)
Analysis and Review of
those programs
identified by Budgetary
Programming office.
Finalize budgets for
each program.
Analyze and identify all
funding sources
available for each
program.
No more going
through divisions
for data
Page 42
Strategic Action Planning Workgroup – Initial
Objectives (FY 2015-17)
Journey of Learning
•
Objective 1 – Meet or exceed all institutional goals in the UNC performance
funding measures.
–
–
–
–
–
–
–
–
–
–
•
Graduation Rates of NCCCS Transfer Students
Degrees Awarded in STEM and Health Disciplines
Undergraduate Students graduating with University Honors
Energy Efficiency
Annual Giving
6-Year Graduation
Retention
Degree efficiency
Degrees awarded to Pell recipients
Financial integrity index (UNC FIT)
Objective 2 -Ensure that all undergraduates have an applied learning experience (in
research/discovery, internships/application, service learning/regional engagement,
and/or study abroad/exploration away) that achieves a set of established learning
objectives.
Page 43
Strategic Action Planning Workgroup – Initial
Objectives (FY 2015-17)
Love of Place
• Objective 3 – Design and develop proposals for advanced health professional
degree programs responsive to health industry needs.
•
Objective 4 – Conceptualize, design and fund an industry-linked film production
facility consistent with the addition of a graduate program in Film Studies.
Power of Ideas and Innovation
• Objective 5 – Develop and implement the CREST (Millennial Campus) model with
initial emphasis on meeting MARBIONC partnership targets.
•
Objective 6 – Enhance the regional entrepreneurial community through the launch
of the Center for Innovation and Entrepreneurship and related programs.
Page 44
Financials
Budgeting
ENROLLMENT GROWTH FUNDING
Source: Adapted from UNC Enrollment 101 BOG Policy Discussion, Sept. 12, 2013.
Funding
Page 45
Enrollment = Admissions + Retention
• Enrollment increases by:
– Bringing in more students; and
– Retaining more of the existing students
• BOG and UNCW policies regarding Satisfactory Academic
Progress affect enrollment.
Page 46
Enrollment Trends Since 2009
Actual Fundable Headcount – Regular Term
14,000
13,000
12,000
1,165
1,171
1,084
1,133
11,983
12,018
1,083
11,000
10,000
10,984
11,184
11,453
Fall 2010
Fall 2011
9,000
8,000
Fall 2009
Undergraduates
Fall 2012
Graduates
Fall 2013
Page 47
Enrollment Trends Since 2009
Actual Fundable SCHs – Regular Term
350,000
340,000
330,000
320,000
310,000
16,531
320,636
321,436
15,672
17,011
17,348
300,000
290,000
280,000
16,094
298,620
270,000
2009-10
302,611
2010-11
Undergraduates
308,599
2011-12
2012-13
Graduates
2013-14
Projected
Page 48
Enrollment Trends Since 2009
Actual Fundable SCHs – Distance Education
30,000
25,000
4,122
20,000
15,000
3,390
1,538
1,235
10,000
5,000
1,915
16,048
16,643
2010-11
2011-12
18,429
19,884
12,967
2009-10
Undergraduates
2012-13
Graduates
2013-14
Projected
Page 49
Events Leading to Student Credit Hour
(SCH) Funding Model
•
Prior to the SCH Funding Model
• Enrollment funding based on percentage change in full-time equivalent
(FTE) enrollment
•
Percentage increase in enrollment applied to budget
• 1995 Session
• Consider alternative approaches to funding University Enrollment,
including SCH funding
• Review opportunities for off-campus degree programs and summer
school
•
1997 Session
• Examine funding required for increasing enrollment in distance
education instruction
Page 50
Student Credit Hour Funding Model for
Enrollment Changes
• Following the 1997 Session, UNC developed and implemented
an SCH enrollment-change funding model
–
–
Initially used for 1998-99 enrollment change
Distance education funded using comparable model
beginning FY 1998-99
• Recognizes program costs and degree level differences to
request funding for enrollment changes
Page 51
UNCW SCH Regular Term Enrollment Model
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
Doctoral
(2,362)
125
0
5,722
(464)
213
2,777
(303)
(91)
(730)
586
0
5,407
(56)
122
5,473
Total SCH Change
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
0.000
Campus U/G Cost Factor (5%)
16.228
$
78,630
$ 1,275,996
Total Positions Required
Average Teaching Salary
Instructional Salary Amount
Other Academic Costs (44.89%)
Total Academic Requirements
$ 572,864
$ 1,848,860
Library Rate
11.48%
$
212,336
Gen Inst Spt
Neg. Adjust Factor:
54.05%
$
$
999,309
-
50.00%
$ 3,060,504
Total Requirements
Calculation of Appropriation Request
Total Revenue:
In-State U/G FTEs
Out-State U/G FTEs
Res per GS-116-143.6 U/G FTEs
In-State Grad FTEs
Out-State Grad FTEs
Total FTEs
Total Expected Revenue
Appropriation Request
FTE
197
-13
-7
11
188
Tuition
Rate
$
4,026
$
16,163
$
$
4,163
16,098
FTE x Rate
$ 793,122
$ (210,115)
$
$
(29,139)
$ 177,080
$
730,947
$ 2,329,557
Page 52
UNCW SCH Distance Ed Enrollment Model
SCH Enrollment - Change Funding Model
FY 2014-15 Distance Education Request
Change to SCHs
U/G
Doctoral
Masters
Cat 1
1,271
70
Cat 2
(392)
1,003
Cat 3
2,395
(139)
Cat 4
3,046
42
Totals
6,320
976
Total SCH Change
0
328
0
0
328
7,624
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Instructional Positions Required
U/G
Masters
Doctoral
1.794
0.413
0.000
-0.732
3.300
2.977
5.896
-0.746
0.000
13.115
0.466
0.000
20.073
3.432
2.977
0.000
Campus U/G Cost Factor (5%)
26.483
$
78,630
$ 2,082,319
Total Positions Required
Average Teaching Salary
Instructional Salary Amount
Other Academic Costs (44.89%)
Total Academic Requirements
$ 934,866
$ 3,017,185
Library Rate
11.48%
$
Gen Inst Spt
Neg. Adjust Factor:
54.05%
$ 1,630,788
$
-
50.00%
346,515
$ 4,994,488
Total Requirements
Calculation of Appropriation Request
Total Revenue:
In-State U/G SChs
Out-State U/G SCHs
Res per GS-116-143.6 U/G SCHs
In-State Grad SCHs
Out-State Grad SCHs
Total SCHs
Total Expected Revenue
Appropriation Request
5,512
808
$
$
Tuition
Rate
136
546
1,310
$
204
SCH x Rate
$ 749,687
$ 441,200
$
$ 267,319
(6) $
7,624
789
$
SCH
(4,735)
$ 1,453,471
$ 3,541,017
Page 53
Categories of Instruction
Based on National Study of Instructional Cost and Productivity
(Delaware Data)
Category I
Communications & Journalism
Psychology
Social Sciences
Mathematics & Statistics
English Language & Literature
Philosophy & Related Studies
Security & Protective Services
History
Other
Category II
Education (not Student Teaching)
Area, Ethnic, Cultural & Gender Studies
Multi/Interdisciplinary Studies
Business Management, Marketing,
& Related Services
Liberal Arts & Sciences, General
Studies, & Humanities
Parks, Recr., Leisure & Fitness
Family & Consumer Sciences/ Human
Sciences
Foreign Languages & Literature
Category IV
Engineering
Nursing
Category III
Agricultural Business & Production
Agricultural Science
Natural Resources & Conservation
Architecture and Related Programs
Public Administration & Social Service
Professions
Physical Sciences
Biological & Biomedical Sciences
Visual & Performing Arts
Allied Health
Computer & Information Sciences
Library Science
Engineering – Related Technologies
Science Technologies
Student Teaching courses
Page 54
Change to SCHs
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
•
Enrollment change is based on campus SCH
projections.
•
Input the incremental number of future
SCHs of instruction that are above or below
the number of hours of instruction
budgeted for the prior fiscal year.
•
SCHs are projected separately for:
•
Undergraduate, masters, and doctoral
instruction (horizontally across)
•
Within four levels of program costs, from low to
high (vertically down)
Page 55
SCH per Instructional Position
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
•
Number of SCHs delivered by a faculty
member in each category and level
•
Same numbers are used for all
campuses
•
Based on two data sets:
•
National Study of Instructional
Cost and Productivity (developed
and maintained by the University
of Delaware, Office of Institutional
Research)
•
UNC-specific data on average class
sizes
Instructional Positions Required
Page 56
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
• Number of Instructional
positions required to meet
change in SCH
• Can be positive or negative
based on category SCH change
• Calculations = Change to SCHs/
SCH per Instructional Position
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
Page 57
Undergraduate Cost Factors
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
•
Two cost factors identified by the Board of
Governors to recognize special circumstances
•
Eligibility is reviewed every year
•
Apply only to undergraduate enrollment growth
•
Low-income students
•
More than 1/3 of resident undergraduate
students receive Pell Grants
•
Diseconomies of scale
•
Headcount enrollment less than 6,000
students
•
Neither apply to UNCW
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
Campus U/G Cost Factor (5%)
0.000
Page 58
Calculating Costs
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
0.000
Campus U/G Cost Factor (5%)
Instructional Salary Rate of Campus
• Campus-specific rate, calculated by dividing General Fund
teaching salaries by number of budgeted FTE teaching
positions
($64,433,808 / 819.46 FTE = $78,630)
Instructional Salary Amount
• Total Positions Required x Instructional Salary Rate
Other Academic Costs
• Covers the faculty personnel benefits, academic supplies,
equipment and other instructional costs
• Based on the relationship of these costs to faculty salaries
Total Academic Requirements
• Instructional Salary Amount + Other Academic Costs
Total Pos i tions Requi red
Avera ge Tea chi ng Sa l a ry
Ins tructiona l Sa l a ry Amount
16.228
$
78,630
$ 1,275,996
Other Aca demi c Cos ts (44.89%)
$
$
Total Aca demi c Requi rements
572,864
1,848,860
Page 59
Calculating Costs
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Doctoral
Total SCH Change
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Library Rate
•
•
Covers library costs
Based on the relationship of Library Costs to Total Academic
Requirements
General Institutional Support Rate
•
•
Covers costs such as student services, academic advising,
registrars, student counseling, financial aid personnel, campus
management/maintenance, accounting, internal controls,
financial compliance, legal, institutional research, facilities
management, human resources, physical plant, campus safety
and security
Based on the relationship of General Institutional Support costs
to Total Academic Requirements
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
0.000
Campus U/G Cost Factor (5%)
Total Pos i tions Requi red
Avera ge Tea chi ng Sa l a ry
Ins tructiona l Sa l a ry Amount
16.228
$
78,630
$ 1,275,996
Other Aca demi c Cos ts (44.89%)
Total Aca demi c Requi rements
$
$
572,864
1,848,860
Li bra ry Ra te
11.48%
$
212,336
Gen Ins t Spt
Neg. Adjus t Fa ctor:
54.05%
$
$
999,309
-
50.00%
Page 60
Calculating Funding Request
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Total SCH Change
Doctoral
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
0.000
Campus U/G Cost Factor (5%)
Total Requirements = Total Cost
• Funds needed for delivery of new SCHs
• Total Requirements = Instructional
Salary amount
+ Other Academic Costs + Library
amount +
General Institutional Support amount
Total Pos i tions Requi red
Avera ge Tea chi ng Sa l a ry
Ins tructiona l Sa l a ry Amount
16.228
$
78,630
$ 1,275,996
Other Aca demi c Cos ts (44.89%)
Total Aca demi c Requi rements
$
$
572,864
1,848,860
Li bra ry Ra te
11.48%
$
212,336
Gen Ins t Spt
Neg. Adjus t Fa ctor:
54.05%
$
$
999,309
-
$
3,060,504
Total Requirements
50.00%
Page 61
Calculating Funding Request
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Cat 1
Cat 2
Cat 3
Cat 4
Totals
Change to SCHs
U/G
Masters
(2,362)
125
5,722
(464)
2,777
(303)
(730)
586
5,407
(56)
Doctoral
Total SCH Change
0
213
(91)
0
122
5,473
SCH per Instructional Position
U/G
Masters
Doctoral
708.64
169.52
115.56
535.74
303.93
110.16
406.24
186.23
109.86
232.25
90.17
80.91
Instructional Positions Required
U/G
Masters
Doctoral
-3.333
0.737
0.000
10.681
-1.527
1.934
6.836
-1.627
-0.828
-3.143
6.499
0.000
11.040
4.083
1.105
0.000
Campus U/G Cost Factor (5%)
Calculation of Appropriation
Request
• These new students will cover
some of the costs through paying
tuition
• Tuition Revenue = New FTEs x
Tuition Rates
Calculation of Appropriation Request
Appropriation Request
• = Total Requirements (cost)
less Total Tuition Revenue
Total Revenue:
In-State U/G FTEs
Out-State U/G FTEs
Res per GS-116-143.6 U/G FTEs
In-State Grad FTEs
Out-State Grad FTEs
Total FTEs
Total Expected Revenue
Appropriation Request
Total Pos i tions Requi red
Avera ge Tea chi ng Sa l a ry
Ins tructiona l Sa l a ry Amount
16.228
$
78,630
$ 1,275,996
Other Aca demi c Cos ts (44.89%)
Total Aca demi c Requi rements
$
$
572,864
1,848,860
Li bra ry Ra te
11.48%
$
212,336
Gen Ins t Spt
Neg. Adjus t Fa ctor:
54.05%
$
$
999,309
-
$
3,060,504
$
$
$
$
$
FTE x Rate
793,122
(210,115)
(29,139)
177,080
50.00%
Total Requirements
FTE
197
-13
-7
11
188
Tuition
Rate
$
4,026
$
16,163
$
$
4,163
16,098
$
730,947
$
2,329,557
Page 62
Timeline for Enrollment Projections
Biennium Budget
YEAR ONE
•
•
•
•
•
•
Enrollment Memo instructions (early fall)
Campus process takes place
Initial campus submission
Analysis and Review by internal GA team
Dialogue with campus
Final submission to OSBM and FRD
YEAR TWO
•
Enrollment Memo instructions (later fall)
•
Campus process revises prior year submission
Page 63
Year End Appropriations
(Budget versus Actual)
$110,000,000
$105,000,000
$100,000,000
0.0%
$95,000,000
-5.44%
$90,000,000
-5.68%
0.0%
$85,000,000
$80,000,000
FY 2009-10
Beginning Year Budgeted $102,973,269
End of Year - Budgeted
$95,407,967
End of Year - Actual
$90,220,051
FY 2010-11
$105,393,488
$94,733,938
$89,349,941
FY 2011-12
$105,976,765
$91,313,808
$91,313,398
FY 2012-13
$93,230,450
$96,878,539
$96,878,528
FY 2013-14
$96,484,692
Note: Federal stimulus funds replaced appropriations
(FY09-10 $7.2M) (FY10-11 $7.5M)
Page 64
Comparison of Resident to Non-Resident SCH
SCH Enrollment - Change Funding Model
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
FY 2014-15 Regular Term Request
Change to SCH's
U/G
SCH per Instructional Position
Masters Doctoral
Cat 1
U/G
Masters
Instructional Positions Required
Doctoral
U/G
Masters
169.52
115.56
0.000
0.000
0.000
535.74
303.93
110.16
0.187
0.000
0.000
Cat 3
406.24
186.23
109.86
0.000
0.000
0.000
Cat 4
232.25
90.17
80.91
0.000
0.000
0.000
Cat 2
Totals
100
100
Total SCH Change
0
0
0.187
Change to SCH's
Doctoral
708.64
0.000
0.000
100
U/G
Cat 1
U/G
Masters
U/G
Masters
115.56
0.000
0.000
0.000
535.74
303.93
110.16
0.187
0.000
0.000
Cat 3
406.24
186.23
109.86
0.000
0.000
0.000
Cat 4
232.25
90.17
80.91
0.000
0.000
0.000
0.187
0.000
0.000
Cat 2
Totals
100
100
0
0
100
Campus U/G Cost Factor (5%)
0.187
Total Positions Required
Average Teaching Salary
$ 78,630
Instructional Salary Amount
$ 14,677
Instructional Salary Amount
$ 14,677
Other Academic Costs (44.89%)
$
Other Academic Costs (44.89%)
$
Total Academic Requirements
$ 21,266
6,589
Total Academic Requirements
$ 21,266
Library Rate
11.48%
$
2,442
Library Rate
11.48%
$
Gen Inst Spt
54.05%
$ 11,494
Gen Inst Spt
54.05%
$ 11,494
Neg. Adjust Factor:
50.00%
$
Neg. Adjust Factor:
50.00%
$
-
Total Requirements
$ 35,203
6,589
2,442
-
$ 35,203
Calculation of Appropriation Request
Tuition
Tuition
FTE
3
Out-State U/G FTE's
Rate
$
4,026
$
16,163
Res per GS-116-143.6 U/G FTE's
FTE x Rate
$ 13,601
$
-
$
-
In-State Grad FTE's
$
4,163
$
-
Out-State Grad FTE's
$
16,098
$
-
Total FTE's
0.187
$ 78,630
Calculation of Appropriation Request
In-State U/G FTE's
0.000
Average Teaching Salary
Total Requirements
Total Revenue:
Doctoral
169.52
0.000
Total Positions Required
Instructional Positions Required
Doctoral
708.64
Total SCH Change
Campus U/G Cost Factor (5%)
SCH per Instructional Position
Masters Doctoral
3
Total Expected Revenue
$ 13,601
Appropriation Request
$ 21,602
Total Revenue:
FTE
In-State U/G FTE's
Rate
FTE x Rate
$
4,026
$
16,163
$
-
In-State Grad FTE's
$
4,163
$
-
Out-State Grad FTE's
$
16,098
$
-
Out-State U/G FTE's
3
Res per GS-116-143.6 U/G FTE's
Total FTE's
$
-
$ 54,604
3
Total Expected Revenue
$ 54,604
Appropriation Request
$ (19,401)
Page 65
Comparison of Resident to Non-Resident SCH
Scenario One
Assumptions
Number of Cat 2 SCHs
In-State U/G FTEs
Out-of-State U/G FTEs
100
3
0
Scenario Two
100
0
3
Total Requirement
$35,203
$35,203
Funding Sources
Tuition
Appropriations Request
$13,601
$21,602
$54,604
($19,401)
Net Revenue to UNCW
$35,203
$35,203
•
Mandated increase in outof-state tuition results in no
change in funding
Page 66
Fundable SCHs (FY 07-08 thru FY 13-14)
Regular Term
UG-Resident
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
Projected
240,752
246,692
249,376
250,189
256,103
268,685
270,089
UG-Non Resident
48,721
47,659
49,244
52,422
52,496
54,661
51,446
Grad - Resident
13,082
14,449
14,723
14,393
13,422
13,505
13,902
2,039
2,375
2,625
2,618
2,250
2,589
2,648
304,594
311,175
315,968
319,622
324,271
339,440
338,085
8,401
10,573
12,624
15,451
15,903
11,326
20,661
UG-Non Resident
240
325
343
597
741
644
1,555
Grad - Resident
694
1,179
1,168
1,374
1,708
1,921
3,867
48
51
67
164
207
126
260
9,383
12,128
14,202
17,586
18,559
14,017
26,343
313,977
323,303
330,170
337,208
342,830
353,457
364,428
Total Increase
50,451
% Increase
16.1%
Grad - Non Resident
S/T - RTI
Distance Education
UG-Resident
Grad - Non Resident
S/T - DE
Total - All Fundable SCHs
Page 67
Financials
Budgeting
APPROPRIATIONS, TUITION &
STUDENT FEES
Funding
Student Tuition – Resident Students
Page 68
FY 07-08 thru FY 13-14
$5,000
11.9%
14.0%
$4,000
6.3%
$3,000
$2,000
7.6%
1.7%
2.0%
5.5%
6.5%
6.5%
6.5%
7.6%
16.0%
16.1%
6.5%
6.5%
18.1%
4.3%
8.6%
1.9%
UG-Res
Grad-Res
MBA-Res
MSA-Res
$1,000
$0
6.5%
6.0%
6.3%
7.3%
Cumulative
Increase
66.8%
53.4%
54.6%
47.5%
Average
Increase
11.1%
8.9%
9.1%
7.9%
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
UG-Res
$2,413
$2,459
$2,565
$3,029
$3,225
$3,743
$4,026
Grad-Res
$2,714
$2,769
$2,949
$3,421
$3,643
$3,880
$4,163
MBA-Res
$3,217
$3,272
$3,452
$3,934
$4,189
$4,689
$4,972
MSA-Res
$3,217
$3,272
$3,452
$3,934
$4,189
$4,462
$4,745
Note: In FY 2010-11, CITI increase was 2%, coupled with $411 supplemental tuition increase to meet legislative reductions.
In FY 2012-13, CITI increases included 6.5% , coupled with year-1 “catch-up” of $308.00.
Page 69
Student Tuition – Non-Resident Students
FY 07-08 thru FY 13-14
$17,000
3.2%
1.7%
1.8%
$16,000
3.3%
6.5%
6.5%
$15,000
4.9%
$14,000
6.3%6.5%
1.7%
$13,000
$12,000
1.8%
1.9%
2.0%
6.5%
5.0%
5.1%
6.5%
1.8%
5.3%
UG-NRes
Grad-NRes
MBA/MSA-NRes
Cumulative
Increase
30.3%
27.7%
27.0%
Average
Increase
5.1%
4.6%
4.5%
2.0%
1.8%
FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14
UG-NRes
$12,376
$12,626
$13,447
$14,128
$15,046
$15,846
$16,129
Grad-NRes
$12,579
$12,829
$13,663
$14,349
$15,281
$15,781
$16,064
MBA/MSA-NRes
$13,078
$13,328
$14,162
$14,858
$15,823
$16,323
$16,606
Note: In FY 2010-11, CITI increase was 2%, coupled with $412
supplemental tuition increase to meet legislative reductions.
In FY 2012-13, CITI increase was 3.3%, coupled with
$300.00 year -1 “catch-up” for undergraduate non-resident
students.
Page 70
What Tuition Means to UNCW
FY14 Projected
Tuition Revenues
Regular Term Instruction
Resident Students
$38,559,022
Non-Resident Students
Subtotal – Regular Term
28,124,167
$66,683,189
Distance Education (includes RN to BSN AP program)
Resident Students
Non-Resident Students
Subtotal – Distance Education
Total Tuition Revenue
$3,337,875
765,499
$4,103,374
$70,786,563
Page 71
Year End Appropriations
(Budget versus Actual)
$110,000,000
$105,000,000
$100,000,000
0.0%
$95,000,000
-5.44%
$90,000,000
-5.68%
0.0%
$85,000,000
$80,000,000
FY 2009-10
Beginning Year Budgeted $102,973,269
End of Year - Budgeted
$95,407,967
End of Year - Actual
$90,220,051
FY 2010-11
$105,393,488
$94,733,938
$89,349,941
FY 2011-12
$105,976,765
$91,313,808
$91,313,398
FY 2012-13
$93,230,450
$96,878,539
$96,878,528
FY 2013-14
$96,484,692
Note: Federal stimulus funds replaced appropriations
(FY09-10 $7.2M) (FY10-11 $7.5M)
Page 72
FY 2013-14 UNCW Mandatory Student Fees
Mandatory Fee Allocation
Student Services
Athletics
Health
Media
SGA
Student Union
Recreation & Intramurals
Postal
Athletic Facilities Operating
Cultural Events - Academic Affairs
Cultural Events - Student Affairs
Union Debt
Union Expansion Debt
Westside Expansion Debt
Recreation Debt
Recreation Expansion Debt
Leadership
ID/Debit Card
Education & Technology
Subtotal – General & Debt Fees
Transportation
Association of Student Gov't
Subtotal – Miscellaneous Fees
Total Mandatory Fees
Annual Amount
$24.00
538.55
190.50
12.50
53.00
129.00
253.00
15.00
107.50
30.15
10.00
0.00
212.00
20.00
0.00
216.40
21.00
9.00
398.50
$2,240.10
76.00
1.00
$77.00
$2,317.10
Page 73
FY 2013-14 Total Mandatory Student Fees
(General Fees + Debt)
Appalachian State University
$2,604.00
UNC Charlotte
$2,487.00
UNC Asheville
$2,445.00
Western Carolina University
$2,427.00
UNC Greensboro
$2,390.00
UNC Wilmington
$2,240.70
Winston-Salem State University
$2,233.16
East Carolina University
$2,125.00
North Carolina A&T State University
$2,044.50
North Carolina State University
$2,017.15
North Carolina Central University
$1,989.09
UNC Pembroke
$1,852.00
Fayetteville State University
$1,837.00
UNC Chapel Hill
$1,699.98
Elizabeth City State University
$1,651.65
Does not include Miscellaneous Fees
Page 74
Mandatory Student Fees
FY 07-08 thru FY 13-14
$3,000
16.1%
2.4%
-0.6%
2.5%
0.4%
-5.6%
4.2%
$2,000
$1,000
Mandatory Fees
$0
Mandatory Fees
Cumulative Average
Increase Increase
16.7%
2.8%
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
$1,985
$2,068
$2,402
$2,387
$2,446
$2,456
$2,317
Page 75
Summary of Changes to State Budget
FY 13-14
FY 14-15
Variance
Enrollment Growth
$3,607,600
$8,054,992
$4,447,392
CITI
$3,513,972
$0
($3,513,972)
Fees *
$26,493,721
$27,494,165
$1,000,444
Total
$33,615,293
$35,549,157
$1,933,864
* Based on "budgeted student FTE" (FY13-14: 11,434; FY14-15: 11,622)
Page 76
UNCW Environmental Scan/Overview
Strengths & Opportunities
+ Diverse & growing revenue sources
• Distance Ed
• Auxiliaries
• MARBIONC
+ Healthy liquidity
+ Membership in UNC system & history
of state support
+ Well-managed and growing
endowment
+ Strong controls & planning processes
+ Solid student demand & enrollment
trends
+ Commitment to innovation
+ Exceptional compliance record &
unqualified audit opinions
Weaknesses & Challenges
₋ Continuous need to grow revenues
• Endowment
• Federal contracts & grants
₋ Relatively high level of debt
₋ Dependence on state funding
₋ Legislative mandates
₋ Tuition sensitivity
₋ Financial aid resources
₋ Aging plant (~11 years) & potential
future capital/maintenance needs