George Clark, Vice President Business & Financial Affairs

CWU Financial UpdatesBudget and Finance Committee Overview

October 27, 2015

Agenda

Staffing Update“State” Revenue

• Tuition• State Funding • Projected Cost of Attendance

FY 2016 Budgets by DivisionSummer SessionRCM Initial AllocationsQuestions

BFA Reorganization

John SwineySpecial Assistant to the VP BFA

Kelley ChristiansonInterim Director, Student Financial Services

Adrian Naranjo

Interim AVP, Financial

Planning & Analysis

BFA Reorg - Continued

JohnLogwoodManager, Academic Financials

AndrewSullivanInterim Manager,Student Funds

Sharon JonassenSenior Manager,

Academic & Student Life

Karen HamelAssociate Director FPA,CatPlanAdmin

Brenda MoffordBusiness

Manager,President & Operations

Division Support

BFA New Hires

LoriHauserAdministrative Assistant 4 for AVP Business & AUX

VickiDicken

Fiscal Analyst 3 for Financial

Planning and Analysis (ASL

Business Office)

Lindsey DorseyBudget Analyst 3 within Financial Planning and Analysis

State/Tuition Budget

Enrollment to Increase ~100-300Annual Average Headcount +/-1%

(Generates tuition revenue of $61.2M and $55.2M in FY 16 and FY 17)

10,365

10,265

10,167

10,278 - 10,375

10,440

10,000

10,200

10,400

10,600

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

CWU Cost of Attendance will decreaseResident Undergraduate

Tentative RatesFY 2015

FY 2016 (Est)

FY 2017 (Est)Subject to Change

Base Tuition $7,245 $6,897 $5,907Services & Activities Fee $696 $696 $731

Subtotal Tuition and S&A $7,941 $7,593 $6,638Housing $4,580 $4,810 $5,051Dining $4,736 $4,880 $5,124Student Fees $1,095 $1,095 $1,095

Total $18,352 $18,378 $17,908 Projected increases/year $26 ($470)Cost difference per mo/9 mo $3 ($52)

CWU Cost of Attendance – Resident Undergraduate

Tentative Rates Subject to Change

FY 2016Adjusted for

Math & Tutoring Fee

Base Tuition $ 6,897Student S&A Fee $ 696

Subtotal Tuition $ 7,593 Housing $ 4,810 Dining $ 4,880 Student Fees $ 1,095

Athletic $ 168 Recreation Center $ 306 Central Transit $ 9 Student Health & Counseling Center $ 264 Wellness $ 33 Student Union $ 207 Technology $ 90 Student Lobby $ 3 Math & Writing Tutoring $ 15

TOTAL $ 18,378

Budget Assumptions

FY 2016 FY 2017

Faculty Bargaining Unit Increase of 4% + Promotions

Increase of 3% + Promotions

Classified Staff Increase of 2% Increase of 1.8%

Exempt Staff Increase of 2% Increase of 2% (tentative)

Revenue forecast increasing (state investment in operating and capital)

$114.8

$41.4 $43.4

$19.6

$69.8

$12.8$7.6 $5.5

$119.6

$43.7$47.1

$19.6

$69.8

$12.9$7.6 $5.5

$0.0

$40.0

$80.0

$120.0

State/Tuition Auxilliaries Grant/Contracts Local Funds Capital S&A/522 Funds Internal Service Scholarship

Mill

ions

FY16 FY17

FY 2016 Revenue Forecast $314.9M

FY 2017 Revenue Forecast $325.8M

ASL, $70.1

BFA, $8.9

Ops, $22.3

President, $10.9

Central Accounts, $2.2

$0

$20

$40

$60

$80

$100

$120

Mill

ions

FY 2016

FY 16 Stack Allocation – President’s Office

Athletics, $2,701,403

Attorney General, $233,575

Faculty Senate,

$181,374

Inclusivity and Diversity, $119,238

President's Office, $1,025,143

Public Affairs, $2,619,254

University Advancement,

$2,706,889

Institutional Effectiveness,

$1,292,434

$114.4M

FY 16 Stack Allocation – OperationsVP Operations,

$760,543

HR, $2,318,739

ITS, $7,287,110

FMD, $10,281,543

Public Safety, $913,340

IS Compliance, $782,953

ASL, $70.1

BFA, $8.9

Ops, $22.3

President, $10.9

Central Accounts, $2.2

$0

$20

$40

$60

$80

$100

$120

Mill

ions

FY 2016

$114.4M

FY 16 Stack Allocation – BFA

Finance Service, $4,871,338Enrollment

Management, $2,509,926

Business & Financial Affairs,

$1,519,280

ASL, $70.1

BFA, $8.9

Ops, $22.3

President, $10.9

Central Accounts, $2.2

$0

$20

$40

$60

$80

$100

$120

Mill

ions

FY 2016

FY 16 Stack Allocation – Academic Affairs

College of Arts & Humanities, $12,285,567

College of Business, $7,882,082

College of Ed & Prof Studies, $14,548,972

College of the Sciences,

$19,694,545

Libraries, $4,304,847

Graduate Studies & Research,

$1,606,235

OISP, $805,778

Provost, $1,380,480

Associate Provost, $3,395,422

Student Success,

$4,236,192

ASL, $70.1

BFA, $8.9

Ops, $22.3

President, $10.9

Central Accounts, $2.2

$0

$20

$40

$60

$80

$100

$120

Mill

ions

FY 2016

$114.4M

Summer Session Budget

Forecast

CWU Summer Session

• “RCM like” model• Summer Revenue allocated based on SCH generated• Less Expenses

• Actual faculty salary and benefits by college• Shared allocation for Institutional and Academic/Student Life

costs based on percent of SCH generated

• Net Revenue allocated to each college after Provost share (~16%)

• Funds Provost “checkbook” for ASL initiatives• Net funds (discretionary) provided to college deans for

adjuncts, travel, and personal development efforts for faculty and chairs

CWU Summer Session – cont’d

• Current fiscal year based on prior year actuals plus tuition adjustments (lags by one year)

• Need to work out plan for summer rates for next summer session with faculty and deans

• Planned initial distributions (70%) for November 2015 based on agreements with ADCO

• True up in December 2015.

CAH, $747,151

COB, $750,130

COTS, $1,173,167

CEPS, $1,451,058

Total Institutional Costs, $206,199

Total ASL Support Costs, $187,327

Provost, $677,173

CAH, $658,061

COB, $387,612

COTS, $900,829

CEPS, $1,591,665

Projected Distribution, $4,215,340

Revenue Distribution back to Colleges

FY16 Summer Session Estimated Revenue $8.8M

Expenses

Tuition and State

Overhead

President

BFA

CollegeOperations

ASL Support

AcademicCollege

RCM Model – College Operations

Overhead costs to Colleges

Operations

Business Units

9

80.0% 10.0% 5.0% 5.0% 100.0%SCH Majors PreMajors Grad Rate Ledger 1 Revenue

CAH 22.5% 17.2% 17.2% 15.2% $24,602,314 21.4%CEPS 27.1% 35.1% 28.4% 34.2% $32,632,312 28.3%CB 10.9% 14.2% 40.8% 18.7% $15,145,133 13.1%COTS 39.4% 33.6% 13.5% 31.9% $42,825,371 37.2%

100.0% 100.0% 100.0% 100.0% $115,205,130 100.0%

RCM Principles = $115.2M Revenue allocated using SCH, Majors, PreMajors and Grad Ratio by College with

3 year averages

21

Summer School1 2 Allocation of Gross Assignable Revenue to Colleges based on four performance factors Faculty Budget

80.0% 10.0% 5.0% 5.0% 100.0% 2016 EstState $46,485,000 SCH Majors PreMajors Grad Rate Ledger 1 RevenueTuition $72,443,000 CAH 22.52% 17.16% 17.23% 15.21% $24,602,314 21.4% $747,151Admin Fee $4,000,000 CEPS 27.11% 35.07% 28.44% 34.18% $32,632,312 28.3% $1,451,058Capital $1,211,000 CB 10.94% 14.16% 40.83% 18.74% $15,145,133 13.1% $750,130Univ Carryforward $442,000 COTS 39.43% 33.62% 13.50% 31.87% $42,825,371 37.2% $1,173,167

ASL Revenue Enhanc $1,824,129 100.0% 100.0% 100.0% 100.0% $115,205,129 100.0% $4,121,506Total $126,405,129

Deductions Check figures SCH Majors PreMajors Grad Rate

Waivers $11,200,000 CAH $20,756,962 $1,976,760 $992,605 $875,987 $24,602,314Capital CEPS $24,985,556 $4,039,706 $1,638,337 $1,968,713 $32,632,312Contingency $0 CB $10,082,482 $1,631,171 $2,351,953 $1,079,527 $15,145,133 COTS $36,339,104 $3,872,876 $777,361 $1,836,030

Total $11,200,000 Total Budget $72,379,758Total Available $115,205,129 $114,409,912

3 Sum University Overhed Costs 4 Sum Academic Overhed Costs 5 Prorate Overhead to Colleges

Percent RevenueUniversity (div 30) $2,145,180 Total $15,728,954 Add SCH Support University ASL TotalPresident $10,879,310 Provost $1,380,480 CAH $9,453,913 $3,358,953 $12,812,867

President $1,025,143 Grad Studies $1,606,235 CEPS $12,539,595 $4,455,289 $16,994,884Athletics $2,701,403 Assoc Prov $3,395,422 CB $5,819,809 $2,067,765 $7,887,574AG $233,575 OISP $805,778 x COTS $16,456,475 $5,846,947 $22,303,422FS $181,374 Student Success $4,236,192 x $44,269,792 $15,728,954 $59,998,746Inclusivity $119,238 Libraries $4,304,847 xPublic Affairs $2,619,254Advancement $2,706,889Accred & Comp Plan $1,292,434

BFA $8,900,544 6 Calculate Burdened BudgetsVPBFA/CFO $1,519,280 7 Calculate College Net Budgets Add RevisedFin Service $4,871,338 Net Alloc Current Costs Over/Und Summer Over/UnderEnrollment $2,509,926 CAH $11,789,447 $12,285,567 ($496,120) $658,061 $161,941

Operations $22,344,758 CEPS $15,637,428 $14,548,972 $1,088,456 $1,591,665 $2,680,121VP Operations $760,543 CB $7,257,559 $7,882,082 ($624,523) $387,612 ($236,911)HR $2,318,739 COTS $20,521,950 $19,694,545 $827,405 $900,829 $1,728,234ITS $7,287,110 $55,206,383 $54,411,166 $795,217 OE $0FMD $10,281,543Public Safety $913,340IS Compliance $783,483

Total Cost Continuing $44,269,792 $0 $0 $0 $0 Univ OH / Total BudgetTotal Assignable $44,269,792 38.7%

Calculate Total Assignable Revenue

FY16 Budget

-$496,120

$1,088,456

-$624,523

$827,405

-$800,000

-$400,000

$0

$400,000

$800,000

$1,200,000

CEPS

FY 2016 College RCM Ledger 1 Only

CAHCoB

COTS

Tuition and State

Overhead

President

BFA

DepartmentOperations

Dean Office

Academic Departments

RCM Model – Department Operations

Overhead costs to Depts

Operations

ASL Support

18

CEPS Net Margin by Department

41002Aerospace

41003MilitaryScience

41004Information

Tech &Admin Mgt

41005Teaching

Elem Adol &Young

41006Family &

ConsumerSciences

41007Nutrition

Exercise &Hlth Scie

41008Eng Tech,Safety &

Construct

41009Aviation

41016Ed

Foundations& Curriculum

41017Lang Lit &

Sped

41018AdvancedPrograms

41019Phys Ed

School &Public Health

Net $25,725 $34,875 $1,041,353 $154,981 -$10,050 $864,109 $84,608 -$253,583 -$450,900 -$311,771 -$160,256 $199,364

$25,725 $34,875

$1,041,353

$154,981

-$10,050

$864,109

$84,608

-$253,583

-$450,900

-$311,771

-$160,256

$199,364

-$600,000

-$400,000

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

42002Anthropology

42004BiologicalSciences

42005Chemistry

42010Geography

42011GeologicalSciences

42014Math

ematics

42017Physics

42018PoliticalScience

42019Psychology

42020Sociology

42023Computer

Science

42027Law &Justice

42031Science

EducationSeries1 -$40,651 -$943,793 -$602,785 $50,664 -$993,330 $815,396 -$597,311 -$204,081 $845,032 $1,441,711 $35,351 $1,389,026 -$351,546

-$40,651

-$943,793

-$602,785

$50,664

-$993,330

$815,396

-$597,311

-$204,081

$845,032

$1,441,711

$35,351

$1,389,026

-$351,546

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

COTS Net Margin by Department

CAH Net Margin by Department

44001 College ofArts &

Humanities44003 Art 44006

Communication44007 Theatre

Art 44008 English 44009 WorldLanguages 44013 History 44015 Music

44016Philosophy &

Religious StudiesSeries1 -$389,367 -$23,817 $699,876 -$184,001 $511,732 -$50,854 -$198,593 -$1,318,851 $476,524

-$389,367

-$23,817

$699,876

-$184,001

$511,732

-$50,854

-$198,593

-$1,318,851

$476,524

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

CoB Net Margin by Department

47002 Accounting Department 47003 Finance & SCM/47005 Management 47004 Economics

Series1 -$65,100 -$845,966 $284,030

-$65,100

-$845,966

$284,030

-$1,000,000

-$800,000

-$600,000

-$400,000

-$200,000

$0

$200,000

$400,000

35,067 32,404 30,05333,706

32,193 30,283 33,20830,570 28,591

15,608 15,430 15,257 15,161 15,480 15,81814,904

15,348 15,952

37,836 38,553 38,767 38,148 37,319 38,314 38,273 38,995

38,149

56,48856,482 53,105

57,822 58,587

52,568

57,99855,689

52,091

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Fall 2012 Winter 2013 Spring 2013 Fall 2013 Winter 2014 Spring 2014 Fall 2014 Wtr 2015 Spring 2015

ASL Colleges SCH Time-Series

CAH CB CEPS COTS

What can be done to influence RCM outcomes?• Dashboard metrics

• DEANS/CHAIRS/FACULTY – added transparency regarding budget deployment• STUDENTS: Enrollment trends

• SCH by Department with UGR and Grad• Major/Pre-Major declaration trends

• DEANS/CHAIRS: Reports• Provide information for faculty class / revenue estimates

• Revenue per SCH UGRD • FY 16 Tuition Est/2014-2015 UGR SCH = $58,844.5K/411,691 = $143/SCH

• Revenue per SCH Grad • (Fall 14/Wtr 15/Spr 15) = $2398.5K/13863 = $173/SCH

• Courses: Median class size versus benchmark • Upper division and lower division benchmarks versus actuals• Prioritizing investment in small courses where possible• Provost/Dean set targets for “X” students per course• Percentage of courses below breakeven decreases

• Collapsing excess sections via space / seat capacity utilization Facilities• Consolidate excess sections to create adjunct savings and T/TT/NTT SCH recovery or

redeployment to high demand / bottleneck courses

Summary

• Questions