Resource Analysis – BS PFP and BSBA/PFP

In 2016 CWU College of Business proposed a new specialization, a Bachelor of Science in Business Administration with a specialization in Personal Financial Planning (BSBA/PFP). That proposal was approved by CWU Faculty Senate in Spring 2016 and the CWU Board of Trustees in Summer 2016. The program was established in response to direct inquiries from CWU alumni and a review of the professional landscape in financial services. The PFP specialization adheres to learning outcomes recommended by the Certified Financial Planning Board, (CFP

Board). In a manner similar to certification in professional accounting, students who successfully complete the CWU program will be prepared to sit for the CFP Board Certification. CFP Certification is a highly desired professional designation for prospective employees at companies and organizations involved in different areas of the financial services industry including wealth management, banking, insurance, brokerage, accounting and others. Presently there are no institutions in Washington State, Oregon or

Idaho that offer a CFP Board certified program.

The career potential for those with an education in financial planning is also indicated in the US News 2016 ranking of best jobs. “Financial Advisors” are ranked as fourth among 25 best business related jobs.

Figure 1: Financial Planning Programs in Region (CFP Board Certified)

Figure 2: BLS Logistics Job Outlook (http://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm)

Resource Analysis – BS PFP and BSBA/PFP

Figure 1: US News Ranking of Best Business Jobs 2016. (http://money.usnews.com/careers/best-jobs/financial-advisor)

Continued review of program content along with input from members of a newly formed CWU Financial Planning Advisory Board identified the need to further enhance student preparation by including relevant courses in counseling and financial planning technology. In its original structure as a Specialization in the BS Business Administration program, additional required courses could not be added due to credit limits. It also became apparent that some prospective students would prefer to take course more focused on financial planning concepts and skills rather than core BSBA courses that may not be as relevant. The BS Personal Financial Management (BSPFP) provides both a way to extend specific program requirements as well as offer a curriculum accessible to those who may not otherwise have considered a specialization that builds from core courses assigned to all students pursuing a BSBA with specialization.

Meridian Wealth Management

Merriman

Morgan Stanley

Pacific Capital Resources Group

SCS Consulting

Trellis Advisors

True Retirement

UBA

Wells Fargo Table 1: Companies represented on CWU Financial Planning Advisory Board

Resource Analysis – BS PFP and BSBA/PFP

Courses: The BSBA/PFP and the BSPFP draw from existing College of Business courses alongside new courses specifically developed for the program.

Of the 11 required courses included in the BS PFP, three are courses offered throughout the course of the academic year as part of the Finance curriculum (FIN 370, FIN 475 and BUS 490). Six courses were originally developed and approved in the 2016 BSBA/PFP and two are currently proceeding through the approval process.

The eight courses specifically designed for PFP specialization and major have not been delivered to date. The program is planned for initial delivery in a cohort fashion beginning in Fall 2017. Students in the program will include those pursuing a BSBA/PFP as well as a BSPFP degree. Based on a preliminary graduation plan, we expect five new course to be delivered during the 2017-18 Fall to Spring academic year. This accounts for 22 total workload units over that period. With the beginning of a second cohort in Fall 2018, the total number of PFP specific courses during the 2018-19 Academic Year will increase to 8 classes and 36 total workload units. This number will remain consistent for as long as the program continues as cohort based, beginning each Fall.

The classes required for the PFP program options will be delivered by a combination of CWU Ph.D. faculty, Full-time lecturers and adjunct faculty consisting of business professionals from the financial planning community. We anticipate the breakdown as follows.

o FIN 370 Introductory Financial Management, existing Ph.D. Faculty o FIN 475 Investments, existing Ph.D. Faculty o BUS 490 Cooperative Education, existing oversight by existing Ph.D. Faculty o ACCT 303 Tax Planning for Personal Finance, new, existing Ph.D. Faculty o FCL 355 Family Financial Counseling, new, existing FCL Faculty o PFP 310 Introduction to the Financial Planning Profession, new, adjunct

faculty o PFP 386 Information Technologies for Financial Planning, new, adjunct

faculty o PFP 440 Estate Planning, new, adjunct faculty o PFP 450 Insurance and Risk Management, new, adjunct faculty o PFP 460 Retirement Planning, new, adjunct faculty o PFP 480 Financial Planning Capstone, new adjunct faculty

Enrollment and Graduation Targets for the first years? (student headcount) The program will initially be offered at CWU Ellensburg. Expansion to Centers will be considered once enrollments are established and graduation outcomes verified. Our present expectations for initial program enrollment and growth are included below. Students are expected to enter the program as they enter their junior year. Our target is to

Resource Analysis – BS PFP and BSBA/PFP

enroll 30 students into the inaugural cohort. We have based our initial projections on more conservative numbers.

Fall 2017 Fall 2018 Fall 2019 Fall 2020 Enrollment Ellensburg 15 25 30 40

Table 2: Initial Enrollment Projections

The associated tuition revenue stream is based on full-time resident undergraduate tuition of $5,000 per year. We incorporate a ten percent attrition rate between the first and second year of program enrollment. In addition to tuition, with the support of our CWU Financial Planning Advisory Board we are pursuing industry partnerships in the program that would bring additional corporate grants and gifts to fund program development. Thus far we have secured one commitment of $5,000 per year over five years from a CWU Alumni. Our goal is to secure similar commitments from companies of $25,000 per year over five years. Program revenues reflect gradual success in those efforts.

AY 17-18 AY 18-19 AY 19-20 AY 20-21

Tuition and Fees (total) $75,000 $190,000 $260,000 $335,000

Corporate Grants/Donations $25,000 $50,000 $75,000 $100,000

Internal Reallocation

Other Fund Source (specify)

Total Revenue $100,000 $240,000 $335,000 $435,000

AY 17-18 AY 18-19 AY 19-20 AY 20-21

Administrative Salaries (#FTE)/Benefits $57,600 $64,000 $64,000 $25,000

Faculty Salaries (#FTE)/Benefits $23,040 $42,240 $42,240 $142,240

TA/RA Salaries (#FTE)/Benefits $19,200 $19,200 $19,200 $19.200

Clerical Salaries (#FTE)/Benefits

Other Salaries (#FTE)/Benefits

Contract Services (promotions) $5,000 $5,000 $7,500 $7,500

Goods and Services

Travel $5,000 $5,000 $5,000 $5,000

Equipment (list equipment & cost) $5,000

Lease or Acquisition

Other (Course Development) $15,000 9,000

Indirect (if applied to the program

Total Costs $129,840 $144,440 $118,740 $198,940

Annual Net Income $ (29,840) $95,560 $191,260 $236,060 Table 3: Revenues & Expenses

Administration and Faculty

Resource Analysis – BS PFP and BSBA/PFP

Administrative salaries support a CFP qualified Program Director. The College of Business recently identified and secured an individual for this position. The Program Director is engaged with teaching, recruiting students, coordinating with industry-based faculty as well as industry relations for future recruiting and financial support. Administrative salaries reduce in year four based on an expectation of hiring a full time Ph.D. faculty who would assume the role of Program Director as well as faculty.

Faculty salaries are exclusive to course that are not already being offered as part of the College of Business curriculum. The estimates are based on $1000.00 per wlu plus benefits. The PFP specific courses will primarily be delivered by industry professionals with experience associated with each course focus. Faculty cost increases during AY 20-21 are associated with the hiring of a full time Ph. D. faculty.

TA/RA Salaries include a 5 wlu per quarter expense to fund a full time lecturer who will be engaged in supporting industry professionals in their course preparation and delivery. The lecturer will help ensure consistency across course delivery and learning system management. They will be working alongside each industry-based faculty member.

Contract services are primarily associated with the development and distribution of promotional materials and events directed toward prospective students and industry partners.

Travel expenses are directed toward participation at annual academic conferences as well as activities related to industry recruitment.

Equipment expenses are related to computer support for faculty. Other expenses are primarily associated with initial course development. We are

allotting an average of $1,000 per course credit for initial course development.

Library

No additional library resources are anticipated. The College of Business is using separate funds to acquire and support a financial database for research and practice.

Physical No additional physical facility needs are identified. Courses can/will be delivered

in current University/College of Business facilities.

Advising Advising will be supported by a central advising service in the College of Business.

Resources are in place to providing advising. In addition, students will receive advising through engagement with a Financial Planning Club. The college has identified a full time lecturer candidate whose responsibility will extend to club and individual advising.

Resource Analysis – BS PFP and BSBA/PFP

Implementation The College of Business has initiated implementation of the BSBA Personal

Financial Planning specialization with the intention to start course delivery in Fall 2017. Once approved, the BS Personal Financial Planning will be implemented along with the BSBA option. Both programs rely on the same courses. The only exceptions are associated with courses in counseling and in technology.

Areas to be Addressed

The Director for the Personal Financial Planning program has been secured based on the prior approval of the BSBA/PFP.

Presently we are initiating outreach to the business community to make them aware of the program.

We are securing faculty for those courses that would be better addressed by practicing professionals.

In February, the PFP Program Director will be attending the annual CFP Board Academic Programs conference.

In February, we will also be visiting Utah Valley University where a very successful and rapidly growing program is in place.

We will be completing the application materials to receive CFP Board approval in January.

During Winter and Spring quarters, we will be hosting discussions and presentations with professionals in the financial planning industry and will work toward initiating a student chapter of the Financial Planning Association. These efforts will be focused on the BSBA/PFP until such time as we are approved to discuss the BSPFP option.