Planning and Budget Committee January 22, 2016

Agenda How are we doing? – First Qtr results Review of why did you take my money? – Reserves What is a Budget? – Review the basics How is this being monitored? - Financial Oversight Why it is critical this year? - SACS What challenges and opportunities do we face?

1st Quarter Results

1st Quarter Results Budget Reflecting Sequester of Funds

Reserves after Sweep

Budget Budget – an estimate of expected income and expense for a given period in the future. AUM FY15 Budget Actual Revenue $71,661,617 $69,052,048 State Appropriations Tuition and Fees Other Income Expenditures $71,661,617 $70,505,233 Personnel Costs Operating Expenses NET $0 $(1,453,185)

Points of Clarification The deficit from actual operations from the previous year is NOT rolled into the current budget. FY16 budget or actual did not start with a $1.4 million deficit. Our cash balance was decreased by the $1.4 million. Current cash balance on 10/1/2015 - $7,458,403. So, we use our cash reserves to balance the operating budget. The University does NOT have a $4 - $8 million budget deficit.

Financial Oversight External Audits Internal Audits Price, Waterhouse and Cooper conduct a review of our net position each year. Issues a “Review Report of Independent Accountants Internal Audits Auburn University Department of Internal Auditing conducts periodic financial review of AUM. Auburn University Finance and Budget Offices Reviews transactions periodically and asked for justification AUM Financial and Administrative Services Reviews financial position monthly College and Departmental Level Reviews transactions every two weeks after the bi-weekly payroll runs

SACSCOC Reaffirmation Core requirement 2.11.1 The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services. September 2017 – FY16 (current year) externally reviewed financial statements submitted. March 2018 – FY17 (next year) externally reviewed financial statements provided to on-site committee.

Challenges and Opportunities Challenge - Enrollment continues to decline Opportunity - Retention is key

Challenges and Opportunities Challenge – FTFT Retention rate has stabilized near 65% Opportunity – Investigate 2nd to 3rd year persistence

Difference in New Tuition Revenue Generated: $290,000 Difference in Returning Student Tuition Revenue Generated: - $264.915

Difference in Tuition Revenue Generated: - $101,418.

Data Considered for Fall 2016 New Students   Comp Apps Accepts Yield CHP Fall 2014 FR 2511 2118 773 9957 TR 789 680 402 4695 3300 2798 1175 14652 Fall 2015 2925 2419 781 10020 840 684 390 4732 3765 3103 1171 14752 Trends show increased applications and accepted students Data for Fall 2016 – YTD Applications & Attendance Up

Challenges and Opportunities Challenge – Graduation rates – 2008 Cohort, 24.7% (6-year) Opportunity – Investigate students leaving before graduation Challenge – Continued deficits are undesirable Opportunity - Rebalancing of the budget Challenge – Department of Labor Changes Opportunity – Compensation adjustment for some employees

Reminders No lay-offs have occurred since 2010 Salaries were increased in FY16 by 3% (1% merit and 2% supplement) No travel or hiring freezes are in place at this time

Questions?