Board of TrusteesFinancial Workshop
December 2, 2013
INTRODUCTION
Page 2
UNCW Guiding PrinciplesPage 3
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.
UNCW Environmental Scan/OverviewPage 4
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
Agenda
• Credit Rating Agencies & Debt Management
• Higher Education Financial Statements
Page 5
Financials Budgeting Funding
• Budget Process • Enrollment Growth Funding
• Appropriations, Tuition & Student Fees
CREDIT RATING AGENCIES AND DEBT MANAGEMENT
Page 6
Financials Budgeting Funding
Rating ProcessPage 7
• 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.
Moody’s Higher Education ScorecardPage 8
>>>
>
>>>>
Moody's Higher Education Scorecard
Section 1: Quantitative Factors
Operating Revenues > 10%
Factor 1: Market Postion -35%
Net Tuition/Student > 10%
Selectivity 5%Matriculation 5%
Av Gifts Per Student 5%Rev Diversity (Max. > 10%Single Contribution)
Factor 2: Operating Performance - 30%
Av DS Coverage > 10%
10%>Operating Cash Flow Margin
Debt to Op. Revenues 5%
Total Cash + Inv > 10%
Liquidity to Demand Debt 5%
Factor 3: Balance Sheet + Capital Investment: 35%
Exp. Res. to Debt 5%Mon. Days Cash on Hand 5%Exp. Res. to Operations 5%
Section 2: Qualitative Factors
Leadership and Senior Management
Short- and Long-term Planning
Factor 4: Governance and ManagementExternal Disclosures and
Internal ControlsSelf-assessment and Benchmarking
Government and Stakeholder Relations
Interest rate, Counterparty and Refinancing Risk Factor 5: Debt Structure and Legal Covenants
Borrowing Terms and CovenantsLegal Security and Other Bondholder Protections
Multi-year Trends
Other FactorsHealthcare Exposure (for Colleges with medical schools)Marketable Real EstateEvent RiskOther Factors
Areas of EmphasisDemand 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
Top Causes of Rating ChangesPage 9
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 10
S&P 2013 COPs Rating RationaleStrengths• 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 ParticipationS&PAAAAA+AAAA-A+AA-
BBB+BBBBBB-
Non Investment Grade
Page 11
Moody’s December University Rating Review2010 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 BondsMoody's
AaaAa1Aa2Aa3A1A2A3
Baa1Baa2Baa3
Non Investment Grade
Certificates of ParticipationMoody's
AaaAa1Aa2Aa3A1A2A3
Baa1Baa2Baa3
Non Investment Grade
Page 12
Moody’s 2012 RatingsBest
A3 A2 A1 Aa3 Aa2 Aa1 AaUNCWASUFSUUNCPWCU
UNCSAECUECSUNCA&TNCCUNCSUUNCAUNCCHUNCCUNCGWSSU
Debt ProfilePage 13
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Aggr
egat
e De
bt S
ervi
ce
University of North Carolina WilmingtonAll Outstanding Debt Service
GESC COPs University
Debt AnalysisImproving Trends
Page 14
* Moody’s Calculation except FY13.
140.7
197.8
233.4
254.2
248.3 239.6
0.30x0.31x
0.28x 0.27x 0.31x
0.38x
0.83x
0.72x0.71x
0.79x
0.70x
0.20x
0.30x
0.40x
0.50x
0.60x
0.70x
0.80x
0.90x
$0
$50
$100
$150
$200
$250
$300
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Total Debt ($ Millions)UNCW Expendable Resources to Debt*Moody's A1 Median
HIGHER EDUCATION FINANCIAL STATEMENTS
Page 15
Source: Adapted from UNC Campus Financials 101, Sept. 12, 2013. Charlie Perusse, Stathis Poulos, Rick Niswander and Mary Peloquin-Dodd.
Financials Budgeting Funding
Primary Campus Uses of the Consolidated Financial Statements
Page 16
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
Limited FlexibilityPage 17
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
Limited FlexibilityPage 18
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
Key GASB Higher Ed Accounting PracticesPage 19
Management Discussion & Analysis• Precedes the basic financial statement and is required to include certain information
prescribed by GASB, dual column comparison of year over yearBasic 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 statementsNotes 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(Income Statement)
Page 20
UNCWYear Ended June 30, 2012
REVENUESOperating Revenues:
Student Tuition and Fees, Net (Note 9) $86,526,202Federal Grants and Contracts 12,144,343State and Local Grants and Contracts 1,035,091Nongovernmental Grants and Contracts 791,931Sales and Services, Net (Note 9) 41,194,644Interest Earnings on Loans 73,678Other Operating Revenues 3,886,788
Total Operating Revenues 145,652,677
EXPENSESOperating Expenses:
Salaries and Benefits 150,205,408Supplies and Materials 18,267,194Services 46,134,350Scholarships and Fellowships 16,526,443Utilities 6,770,663Depreciation 14,120,071
Total Operating Expenses 252,024,129Operating Loss (106,371,452)
NONOPERATING REVENUES (EXPENSES)State Appropriations 91,313,397Noncapital Grants - Student Financial Aid 22,728,974Noncapital Gifts, Net (Note 9) 4,893,475Investment Income (Net of Investment Expense of $170,982) 2,862,924Interest and Fees on Debt (11,917,022)Federal Interest Subsidy on Debt 760,163Other Nonoperating Expenses (3,443)
Net Nonoperating Revenues 110,638,468Income Before Other Revenues 4,267,016
Capital Grants 21,726,855Additions to Endowments 2,718,447
Increase in Net Assets 28,712,318
NET ASSETSNet Assets - July 1, 2011 370,983,978
Net Assets - June 30, 2012 399,696,296
Statement of Revenues, Expenses & Changes in Net Position (SRECNP)
• 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 21
SOURCES OF REVENUES
Student Tuition & Fees, Net $86,526 (29%)
Additions to Endowments $2,718 (1%)
Federal Grants & Contracts, $12,144 (4%)
State Appropriations & State Aid
$91,313 (31%)
Sales & Services, Net 41,195 (14%)
Capital/Noncapital Grants $44,456 (15%)
Investment Income$2,863 (1%)
Noncapital Gifts, Net $4,893 (2%)
Non-Federal Grants & Contracts
$1,827 (1%)
Other Revenues$4,721 (2%)
Other$14,304 (6%)
2012 Revenue by Source $292,657($ Thousands)
Top Sources of RevenuesPage 22
Top UNCW Revenue SourcesFY10 FY11 FY12
State Appropriations $90,220,051 $89,349,941 $91,313,397
Tuition 44,022,570 50,161,118 54,379,222
Sales & ServicesResidence Life 18,048,402 18,670,602 19,831,141Dining 10,053,924 10,707,694 11,317,318Other Auxiliary Enterprises 6,112,701 6,024,853 5,152,710Education & Related Activity Sales 3,549,396 4,028,211 4,893,475
Total Sales & Services 37,764,423 39,431,360 41,194,644
Fees 27,590,793 30,445,484 32,146,980
Grants & Contracts 18,559,457 17,030,901 13,971,365
Research RevenuePage 23
20.9
24.0
21.3 21.820.5
23.2
30.432.2
28.7
25.8
8.5
9.910.0
8.09.0
5
10
15
20
25
30
35
40
45
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$ M
illio
ns
Year
Grants & Contracts Revenue 2004-2013(Includes Noncapital Grants - State Passthrough for 2009 - 2013)
State PassthroughGrants & Contracts
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.
Research RevenueFacilities & Administrative Indirect Costs
2009-10 2010-11 2011-12 2012-13 2013-14 Projected$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$2,481,861 $2,474,509
$2,149,163
$1,740,818$1,600,000
Page 24Page 24
UNCW ExpensesPage 25
Salaries and Benefits$150,205 (57%)
Supplies and Materials $18,267 (7%)
Services$46,134 (17%)
Scholarships and Fellowships
$16,526 (6%)
Utilities $6,771 (3%)
Depreciation $14,120 (5%)
Interest $11,917 (5%)Other $3 (<1%)
2012 Expense by Nature $263,943($ Thousands)
Page 26
UNCW Statement of Revenues, Expenses &Changes in Net Position(Dollars in Thousands)
$129,709 $140,028 $145,653
$119,151 $122,572 $110,638
4,891 11,952 24,445
$246,624 $254,608 $252,024
$7,127 $19,945 $28,712
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Increase in NetPositionOperating Expenses
Capital Gifts, Grants& EndowmentNon-OperatingRevenueOperating Revenue
2010 2011 2012
ASSETSCurrent Assets:
Cash and Cash Equivalents $74,411,120Restricted Cash and Cash Equivalents 21,871,785Receivables, Net (Note 4) 3,861,541Due from State of North Carolina Component Units 103,154Inventories 394,183Notes Receivable, Net (Note 4) 559,607
Total Current Assets 101,201,390
Noncurrent Assets:Restricted Cash and Cash Equivalents 31,577,332Receivables, Net (Note 4) 135,573Endowment Investments 60,749,814Deferred Charges 3,538,509Notes Receivable, Net (Note 4) 5,653,449Capital Assets - Nondepreciable (Note 5) 66,501,850Capital Assets - Depreciable, Net (Note 5) 418,198,314
Total Noncurrent Assets 586,354,841
Total Assets 687,556,231
LIABILITIESCurrent Liabil ities:
Accounts Payable and Accrued Liabil ities (Note 6) 10,837,251Due to Primary Government 1,278,984Deposits Payable 1,197Unearned Revenue 4,391,126Interest Payable 2,087,037Long-Term Liabilities - Current Portion (Note 7) 6,254,632
Total Current Liabil ities 24,850,227
Noncurrent Liabil ities:Funds Held for Others 7,519,167U. S. Government Grants Refundable 4,392,778Long-Term Liabilities (Note 7) 251,097,763
Total Noncurrent Liabilities 263,009,708
Total Liabil ities 287,859,935
Page 27
Statement of Net Position:
• 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
assets, long-term liabilities, etc.)
Assets
• 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
Liabilities
• 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
Key GASB Higher Ed Accounting Practices(Balance Sheet)
UNCWYear Ended June 30, 2012
Key GASB Higher Ed Accounting PracticesPage 28
UNCWJune 30, 2012
Statement of Net Position (cont.):
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
NET POSITIONInvested in Capital Assets, Net of Related Debt $ 267,350,758Restricted for:
Nonexpendable:Scholarships and Fellowships 24,575,907Research 2,309,027Endowed Professorships 12,724,767Departmental Uses 17,820,314Loans 1,109,745
Expendable:Scholarships and Fellowships 3,771,311Research 41,382Endowed Professorships 830,546Departmental Uses 7,962,675Loans 335,656Debt Service 900,227
Unrestricted 59,963,981
Total Net Position $ 399,696,296
Page 29
UNCW Statement of Net Positionformerly Statement of Net Assets(Dollars in Thousands)
$351,039 $370,984 $399,696
$262,755 $288,832
$287,860
$613,794 $659,816 $687,556
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Total Assets Total Liabilities Net Position
2010 2011 2012
Net PositionPage 30
UNCW Net Position
FY10 FY11 FY12Invested in Capital Assets, net of related debt) $229,927,613 $247,002,288 $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
Change in Net Assets $19,944,575 $28,712,318
Unrestricted Net Position DefinedPage 31
• 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.
Unrestricted Net Position ConsiderationsPage 32
• 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:
• 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
• Academic programs• Research programs• Institutional
advancement• Student housing• Health system• Administration• Capital projects• Athletics programs
Unrestricted Net PositionPage 33
• Unrestricted Net Position does not equal “Cash”• Operationally a collection of Semi-Autonomous Business Units• “Each boat floats on its own bottom”
FY10 FY11 FY12FY13
(preliminary)Unrestricted Net Assets
Unrestricted Trust 22,155,528 20,941,901 22,459,071 24,364,679 Overhead 2,226,890 2,934,972 3,016,650 2,639,248 Housing 10,072,185 7,961,205 9,902,431 9,710,320 Union 6,298,849 8,492,115 10,679,402 15,066,414 Food Service 3,632,825 3,701,644 3,947,561 3,717,953 Rec Ctr/Intramurals 2,024,614 2,842,151 3,661,119 3,283,614 ITSD Communications 1,141,494 1,512,948 1,628,791 1,794,360 Ed & Tech Fees - - - 1,602,820 Other 5,701,701 4,304,560 4,668,956 8,730,915
Total 53,254,086 52,691,496 59,963,981 70,910,321
* Prior to FY12 Ed & Tech Fees were considered General Funds.
Unrestricted Net PositionMoody’s 2012 Data
Page 34
Aa3 - 0.27xA1 - 0.28x
Moody’s Medians
Aa3 - 0.48xA1 - 0.42x
.25x
.13x
.17x
.03x
.30x
.24x
.16x
.31x
.12x
.44x
0.00x
0.10x
0.20x
0.30x
0.40x
0.50x
UNCW ASU UNCP FSU WCU
Unrestricted Net Position to annual operating expenses Unrestricted Net Position to current total debt
UNCW Environmental Scan/OverviewPage 35
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
BUDGET PROCESS
Page 36
Financials Budgeting Funding
• 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• 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
Internal Budget Cycles• University Annual Allocation
Budget• Special Funds Budgets• Faculty and EPA Legislative Salary
Increases • SPA Legislative Salary Increases• Facilities & Administration
Receipts (Overhead)
Page 38
Background
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
University Planning, Programming & Budget CalendarYear 1 of Budget
Development CycleYear 2 of Budget
Development Cycle
FY 15 - 17 Biennial Budget FY 2013-14 FY 2014-15
Calendar year 2013 Calendar year 2014 Calendar year
2015JULY AUG SEP
T OCT NOV DEC JAN FEB MARCH
APRIL MAY JUNE JULY AUG SEP
T OCT NOV DEC JAN FEB MARCH
APRIL MAY JUN
E
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
Page 41
Strategic Planning Campus identifies strategic priorities for biennium.Ongoing initiatives are evaluated.
University Analytics team provides analysis to support discussions and quantify the goals
Budgetary ProgrammingWorking directly with deans and division directors
Sets out to identify those programs necessary to meet the strategic priorities
Budget AnalysisBudget 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.
Evaluate Approve External Compliance
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”
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
ENROLLMENT GROWTH FUNDING
Page 45
Source: Adapted from UNC Enrollment 101 BOG Policy Discussion, Sept. 12, 2013.
Financials Budgeting Funding
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 46Page 46
Enrollment Trends Since 2009Actual Fundable Headcount – Regular Term
Page 47Page 47
Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 8,000
9,000
10,000
11,000
12,000
13,000
14,000
10,984 11,184 11,453 11,983 12,018
1,165 1,171
1,083
1,084 1,133
Undergraduates Graduates
Enrollment Trends Since 2009Actual Fundable SCHs – Regular Term
2009-10 2010-11 2011-12 2012-13 2013-14 Projected 270,000
280,000
290,000
300,000
310,000
320,000
330,000
340,000
350,000
298,620 302,611 308,599
320,636 321,436
17,348 17,011
15,672
16,094 16,531
Undergraduates Graduates
Page 48Page 48
Enrollment Trends Since 2009Actual Fundable SCHs – Distance Education
Page 49Page 49
2009-10 2010-11 2011-12 2012-13 2013-14 Projected -
5,000
10,000
15,000
20,000
25,000
30,000
12,967 16,048 16,643
18,429 19,884
1,235
1,538 1,915
3,390 4,122
Undergraduates Graduates
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 50Page 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 51Page 51
Page 52Page 52
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
Change to SCHs SCH per Instructional Position Instructional Positions RequiredU/G Masters Doctoral U/G Masters Doctoral U/G Masters Doctoral
Cat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473 Campus U/G Cost Factor (5%) 0.000
Total Positions Required 16.228Average Teaching Salary $ 78,630 Instructional Salary Amount $ 1,275,996
Other Academic Costs (44.89%) $ 572,864 Total Academic Requirements $ 1,848,860
Library Rate 11.48% $ 212,336
Gen Inst Spt 54.05% $ 999,309 Neg. Adjust Factor: 50.00% $ -
Total Requirements $ 3,060,504
Calculation of Appropriation Request Tuition Total Revenue: FTE Rate FTE x Rate In-State U/G FTEs 197 $ 4,026 $ 793,122 Out-State U/G FTEs -13 $ 16,163 $ (210,115) Res per GS-116-143.6 U/G FTEs $ - In-State Grad FTEs -7 $ 4,163 $ (29,139) Out-State Grad FTEs 11 $ 16,098 $ 177,080 Total FTEs 188 Total Expected Revenue $ 730,947
Appropriation Request $ 2,329,557
UNCW SCH Regular Term Enrollment Model
Page 53Page 53
SCH Enrollment - Change Funding ModelFY 2014-15 Distance Education Request
Change to SCHs SCH per Instructional Position Instructional Positions RequiredU/G Masters Doctoral U/G Masters Doctoral U/G Masters Doctoral
Cat 1 1,271 70 0 708.64 169.52 115.56 1.794 0.413 0.000Cat 2 (392) 1,003 328 535.74 303.93 110.16 -0.732 3.300 2.977Cat 3 2,395 (139) 0 406.24 186.23 109.86 5.896 -0.746 0.000Cat 4 3,046 42 0 232.25 90.17 80.91 13.115 0.466 0.000Totals 6,320 976 328 20.073 3.432 2.977
Total SCH Change 7,624 Campus U/G Cost Factor (5%) 0.000
Total Positions Required 26.483Average Teaching Salary $ 78,630 Instructional Salary Amount $ 2,082,319
Other Academic Costs (44.89%) $ 934,866 Total Academic Requirements $ 3,017,185
Library Rate 11.48% $ 346,515
Gen Inst Spt 54.05% $ 1,630,788 Neg. Adjust Factor: 50.00% $ -
Total Requirements $ 4,994,488
Calculation of Appropriation Request Tuition Total Revenue: SCH Rate SCH x Rate In-State U/G SChs 5,512 $ 136 $ 749,687 Out-State U/G SCHs 808 $ 546 $ 441,200 Res per GS-116-143.6 U/G SCHs $ - In-State Grad SCHs 1,310 $ 204 $ 267,319
Out-State Grad SCHs (6) $ 789 $ (4,735) Total SCHs 7,624 Total Expected Revenue $ 1,453,471
Appropriation Request $ 3,541,017
UNCW SCH Distance Ed Enrollment Model
Categories of InstructionBased on National Study of Instructional Cost and Productivity (Delaware Data)
Category ICommunications & JournalismPsychologySocial SciencesMathematics & StatisticsEnglish Language & LiteraturePhilosophy & Related StudiesSecurity & Protective ServicesHistoryOther
Category IIEducation (not Student Teaching)Area, Ethnic, Cultural & Gender StudiesMulti/Interdisciplinary StudiesBusiness Management, Marketing, & Related ServicesLiberal Arts & Sciences, General
Studies, & HumanitiesParks, Recr., Leisure & FitnessFamily & Consumer Sciences/ Human
SciencesForeign Languages & Literature
Category IIIAgricultural Business & ProductionAgricultural ScienceNatural Resources & ConservationArchitecture and Related ProgramsPublic Administration & Social Service
ProfessionsPhysical SciencesBiological & Biomedical SciencesVisual & Performing ArtsAllied HealthComputer & Information SciencesLibrary ScienceEngineering – Related TechnologiesScience TechnologiesStudent Teaching courses
Category IVEngineeringNursing
Page 54Page 54
Change to SCHs
• 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 55Page 55
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters DoctoralCat 1 (2,362) 125 0Cat 2 5,722 (464) 213Cat 3 2,777 (303) (91)Cat 4 (730) 586 0Totals 5,407 (56) 122
Total SCH Change 5,473
Change to SCHs
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56Cat 2 5,722 (464) 213 535.74 303.93 110.16Cat 3 2,777 (303) (91) 406.24 186.23 109.86Cat 4 (730) 586 0 232.25 90.17 80.91Totals 5,407 (56) 122
Total SCH Change 5,473
Change to SCHs SCH per Instructional Position
SCH per Instructional Position
• 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
Page 56Page 56
• 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
Page 57Page 57
Instructional Positions RequiredSCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473
Change to SCHs SCH per Instructional Position Instructional Positions Required
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473Campus U/G Cost Factor (5%) 0.000
Change to SCHs SCH per Instructional Position Instructional Positions Required
Undergraduate Cost Factors
• 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
Page 58Page 58
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473Campus U/G Cost Factor (5%) 0.000
Tota l Pos itions Required 16.228Average Teachi ng Sa lary 78,630$ Instructional Sa lary Amount 1,275,996$
Other Academic Costs (44.89%) 572,864$ Tota l Academic Requirements 1,848,860$
Change to SCHs SCH per Instructional Position Instructional Positions Required
Calculating Costs
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 = $78,630)
Instructional Salary Amount• Total Positions Required x Instructional Salary Rate
Other Academic Costs• Covers the faculty personnel benefits, academic supplies,
equipment and other instructional costs• Based on the relationship of these costs to faculty salaries
Total Academic Requirements• Instructional Salary Amount + Other Academic Costs
Page 59Page 59
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473Campus U/G Cost Factor (5%) 0.000
Tota l Pos itions Required 16.228Average Teachi ng Sa lary 78,630$ Instructional Sa lary Amount 1,275,996$
Other Academic Costs (44.89%) 572,864$ Tota l Academic Requirements 1,848,860$
Library Rate 11.48% 212,336$
Gen Inst Spt 54.05% 999,309$ Neg. Adjust Factor: 50.00% -$
Change to SCHs SCH per Instructional Position Instructional Positions Required
Calculating Costs
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
Page 60Page 60
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473Campus U/G Cost Factor (5%) 0.000
Tota l Pos itions Required 16.228Average Teachi ng Sa lary 78,630$ Instructional Sa lary Amount 1,275,996$
Other Academic Costs (44.89%) 572,864$ Tota l Academic Requirements 1,848,860$
Library Rate 11.48% 212,336$
Gen Inst Spt 54.05% 999,309$ Neg. Adjust Factor: 50.00% -$
Total Requirements 3,060,504$
Change to SCHs SCH per Instructional Position Instructional Positions Required
Calculating Funding Request
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
Page 61Page 61
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
U/G Masters Doctoral U/G Masters Doctoral U/G Masters DoctoralCat 1 (2,362) 125 0 708.64 169.52 115.56 -3.333 0.737 0.000Cat 2 5,722 (464) 213 535.74 303.93 110.16 10.681 -1.527 1.934Cat 3 2,777 (303) (91) 406.24 186.23 109.86 6.836 -1.627 -0.828Cat 4 (730) 586 0 232.25 90.17 80.91 -3.143 6.499 0.000Totals 5,407 (56) 122 11.040 4.083 1.105
Total SCH Change 5,473Campus U/G Cost Factor (5%) 0.000
Tota l Pos itions Requi red 16.228Average Teaching Sa lary 78,630$ Instructional Sa lary Amount 1,275,996$
Other Academic Costs (44.89%) 572,864$ Tota l Academic Requi rements 1,848,860$
Library Rate 11.48% 212,336$
Gen Inst Spt 54.05% 999,309$ Neg. Adjust Factor: 50.00% -$
Total Requirements 3,060,504$
Calculation of Appropriation RequestTuition
Total Revenue: FTE Rate FTE x Rate In-State U/G FTEs 197 4,026$ 793,122$ Out-State U/G FTEs -13 16,163$ (210,115)$ Res per GS-116-143.6 U/G FTEs -$ In-State Grad FTEs -7 4,163$ (29,139)$ Out-State Grad FTEs 11 16,098$ 177,080$
Total FTEs 188Total Expected Revenue 730,947$
Appropriation Request 2,329,557$
Change to SCHs SCH per Instructional Position Instructional Positions Required
Calculating Funding Request
Calculation of Appropriation Request
• These new students will cover some of the costs through paying tuition
• Tuition Revenue = New FTEs x Tuition Rates
Appropriation Request• = Total Requirements (cost)
less Total Tuition Revenue
Page 62Page 62
Timeline for Enrollment ProjectionsBiennium 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 63Page 63
Year End Appropriations(Budget versus Actual)
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 $80,000,000
$85,000,000
$90,000,000
$95,000,000
$100,000,000
$105,000,000
$110,000,000
-5.44%
0.0%
0.0%-5.68%
Page 64Page 64
Note: Federal stimulus funds replaced appropriations (FY09-10 $7.2M) (FY10-11 $7.5M)
Comparison of Resident to Non-Resident SCHPage 65Page 65
SCH Enrollment - Change Funding Model
FY 2014-15 Regular Term Request
Change to SCH's SCH per Instructional Position Instructional Positions Required
U/G Masters Doctoral U/G Masters Doctoral U/G Masters Doctoral
Cat 1 708.64 169.52 115.56 0.000 0.000 0.000
Cat 2 100 535.74 303.93 110.16 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
Totals 100 0 0 0.187 0.000 0.000
Total SCH Change 100
Campus U/G Cost Factor (5%) 0.000
Total Positions Required 0.187
Average Teaching Salary $ 78,630
Instructional Salary Amount $ 14,677
Other Academic Costs (44.89%) $ 6,589
Total Academic Requirements $ 21,266
Library Rate 11.48% $ 2,442
Gen Inst Spt 54.05% $ 11,494
Neg. Adjust Factor: 50.00% $ -
Total Requirements $ 35,203
Calculation of Appropriation Request
Tuition
Total Revenue: FTE Rate FTE x Rate
In-State U/G FTE's 3 $ 4,026 $ 13,601
Out-State U/G FTE's $ 16,163 $ -
Res per GS-116-143.6 U/G FTE's $ -
In-State Grad FTE's $ 4,163 $ -
Out-State Grad FTE's $ 16,098 $ -
Total FTE's 3
Total Expected Revenue $ 13,601
Appropriation Request $ 21,602
SCH Enrollment - Change Funding ModelFY 2014-15 Regular Term Request
Change to SCH's SCH per Instructional Position Instructional Positions RequiredU/G Masters Doctoral U/G Masters Doctoral U/G Masters Doctoral
Cat 1 708.64 169.52 115.56 0.000 0.000 0.000
Cat 2 100 535.74 303.93 110.16 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
Totals 100 0 0 0.187 0.000 0.000
Total SCH Change 100 Campus U/G Cost Factor (5%) 0.000
Total Positions Required 0.187
Average Teaching Salary $ 78,630
Instructional Salary Amount $ 14,677
Other Academic Costs (44.89%) $ 6,589
Total Academic Requirements $ 21,266
Library Rate 11.48% $ 2,442
Gen Inst Spt 54.05% $ 11,494
Neg. Adjust Factor: 50.00% $ -
Total Requirements $ 35,203
Calculation of Appropriation Request
Tuition
Total Revenue: FTE Rate FTE x Rate
In-State U/G FTE's $ 4,026 $ -
Out-State U/G FTE's 3 $ 16,163 $ 54,604
Res per GS-116-143.6 U/G FTE's $ -
In-State Grad FTE's $ 4,163 $ -
Out-State Grad FTE's $ 16,098 $ -
Total FTE's 3
Total Expected Revenue $ 54,604
Appropriation Request $ (19,401)
Comparison of Resident to Non-Resident SCHPage 66Page 66
Scenario One Scenario Two
AssumptionsNumber of Cat 2 SCHs 100 100In-State U/G FTEs 3 0Out-of-State U/G FTEs 0 3
Total Requirement $35,203 $35,203
Funding SourcesTuition $13,601 $54,604Appropriations Request $21,602 ($19,401)
Net Revenue to UNCW $35,203 $35,203
• Mandated increase in out-of-state tuition results in no change in funding
Fundable SCHs (FY 07-08 thru FY 13-14)
Page 67Page 67
Regular Term FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 Projected
UG-Resident 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
Grad - Non Resident 2,039 2,375 2,625 2,618 2,250 2,589 2,648
S/T - RTI 304,594 311,175 315,968 319,622 324,271 339,440 338,085
Distance EducationUG-Resident 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
Grad - Non Resident 48 51 67 164 207 126 260
S/T - DE 9,383 12,128 14,202 17,586 18,559 14,017 26,343
Total - All Fundable SCHs 313,977 323,303 330,170 337,208 342,830 353,457 364,428
Total Increase 50,451
% Increase 16.1%
APPROPRIATIONS, TUITION & STUDENT FEES
Page 68
Financials Budgeting Funding
Student Tuition – Resident StudentsFY 07-08 thru FY 13-14
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
$0
$1,000
$2,000
$3,000
$4,000
$5,000
4.3%
18.1%6.5%
6.3%1.7% 5.5%
14.0% 6.5%
7.6% 2.0%
6.5%
16.1%
6.5%
11.9% 6.0%
7.3%
7.6%
8.6% 1.9%
6.5%
16.0%
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.
6.5%6.3%
Page 69Page 69
Cumulative Increase
Average Increase
UG-Res 66.8% 11.1%Grad-Res 53.4% 8.9%MBA-Res 54.6% 9.1%MSA-Res 47.5% 7.9%
Student Tuition – Non-Resident StudentsFY 07-08 thru FY 13-14
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
$12,000
$13,000
$14,000
$15,000
$16,000
$17,000
5.1%
6.5%
1.7%6.5%
1.8%2.0%
6.5%
1.9%
5.3%
3.2%
3.3%
1.7%
1.8%
1.8%
1.8%2.0%
6.5%
5.0%6.3%
4.9%
6.5%
Page 70Page 70
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.
Cumulative
IncreaseAverage
IncreaseUG-NRes 30.3% 5.1%Grad-NRes 27.7% 4.6%MBA/MSA-NRes 27.0% 4.5%
What Tuition Means to UNCWFY14 Projected
Tuition Revenues
Regular Term Instruction
Resident Students $38,559,022
Non-Resident Students 28,124,167
Subtotal – Regular Term $66,683,189
Distance Education (includes RN to BSN AP program)
Resident Students $3,337,875
Non-Resident Students 765,499
Subtotal – Distance Education $4,103,374
Total Tuition Revenue $70,786,563
Page 71Page 71
Year End Appropriations(Budget versus Actual)
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 $80,000,000
$85,000,000
$90,000,000
$95,000,000
$100,000,000
$105,000,000
$110,000,000
-5.44%
0.0%
0.0%-5.68%
Page 72Page 72
Note: Federal stimulus funds replaced appropriations (FY09-10 $7.2M) (FY10-11 $7.5M)
FY 2013-14 UNCW Mandatory Student FeesPage 73
Mandatory Fee Allocation Annual AmountStudent Services $24.00 Athletics 538.55 Health 190.50 Media 12.50 SGA 53.00 Student Union 129.00 Recreation & Intramurals 253.00 Postal 15.00 Athletic Facilities Operating 107.50 Cultural Events - Academic Affairs 30.15 Cultural Events - Student Affairs 10.00 Union Debt 0.00 Union Expansion Debt 212.00 Westside Expansion Debt 20.00 Recreation Debt 0.00 Recreation Expansion Debt 216.40 Leadership 21.00 ID/Debit Card 9.00 Education & Technology 398.50
Subtotal – General & Debt Fees $2,240.10Transportation 76.00 Association of Student Gov't 1.00
Subtotal – Miscellaneous Fees $77.00
Total Mandatory Fees $2,317.10
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 FeesFY 07-08 thru FY 13-14
FY 2007-08
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
$0
$1,000
$2,000
$3,000
16.1% -0.6%2.5%
0.4%-5.6%
2.4%4.2%
Page 75Page 75
Cumulative Increase
Average Increase
Mandatory Fees 16.7% 2.8%
Summary of Changes to State Budget
Page 76Page 76
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)
UNCW Environmental Scan/OverviewPage 77
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