Informational session for trustees: UA financials
IN AN INFORMATIONAL SESSION before the Board of Trustees on March 14, Vice President for Finance & Administration/CFO David J. Cummins presented a comprehensive report about how the University will manage its fiscal resources to maximize opportunities for academic investment and growth as outlined in Vision 2020 and balance its budget in the face of projected shortfalls in revenue.
Key points include:
- Fiscal 2012-13 (the fiscal year that begins July 1, 2012) is a transition year:
- Projections are being adjusted;
- Targeted reductions have been implemented; and
- Fiscal integrity, ensuring excellence and strategic investment are budgeting principles.
- With decreased state support for higher education and no anticipated growth in enrollment, budget management must account for reduced revenues.
- Rather than absorb significant budget reductions in Fiscal 2011-12 (the last fiscal year), the University chose to spread state funding reductions over two years, impacting budget projections in Fiscal 2012-13.
- We will project flat enrollment for the next fiscal year partly due to slower growth of the traditional college-age population and an improving economy (fewer college applicants with increasing employment opportunities), creating a more competitive environment and increased need to target non-traditional college students (including veterans, adult and online learners).
- An increase of 3.5 percent in tuition and fees is anticipated (for Board consideration in June), consistent with plans/actions at other Ohio universities.
- To increase student success (persistence and graduation rates), enrollment strategies are targeting those students most prepared to do college level work and providing pathways for students who require more preparatory education for college completion. Students requiring more preparatory work will be guided to pathways for success at partner community colleges that will enhance their opportunities for associate to bachelor’s degree completion or specialized skills training.
Download an abbreviated presentation to the Board.
A campus forum will be held to cover the entire presentation. Details will be posted to the E-mail Digest. A presentation will be made to University Council as well.
Sources of 2011 General Funds
67 cents of each dollar came from students
- Tuition and fees
- Continuing education
27 cents of each dollar came from the state
- State Share of Instruction
- Federal stimulus
4 cents of each dollar came from services
- Internal sales
- Experimental testing
1 cent of each dollar came from research overhead charged to grants
1 cent of each dollar came from investment income and other
- University endowments
- University investment pool
- Other miscellaneous sources
Expenditures of 2011 General Funds
50 cents of each dollar went to academic activities
- Academic Affairs
- Student Engagement and Success
11 cents of each dollar went to University-awarded financial aid
19 cents of each dollar went to institutional support services
- Central finance functions
- Information Technology
- Talent Development and Human Resources
10 cents of each dollar went to supporting auxiliary enterprises
7 cents of each dollar went to facilities and campus safety
- Physical Plant Operations
- Campus Police
3 cents of each dollar went to debt retirement