FINANCIAL UPDATE AND BUDGET MEETING FEBRUARY 6, 2014

2 The Path Forward Stay focused on our mission and execute on our strategy Leads to bigger, stronger, more engaged university Growing and acquiring the physical assets to support growth Profile and reputation improving Significant growth in philanthropy UM System support for strategy – facilities based upon pro forma Challenged to get back on track to financial strength

Days Operating Expense by Campus ( Recommended is days) Campus Columbia Missouri S&T St. Louis Kansas City43 36

4 Operating Reserves FY2008 to FY2014 FY14 Budget projected as of 10/31/13.

5 Operating Fund Revenues FY2008 to FY2014B FY2014 Budget projected as of 10/31/13.

Net Revenues and Expenses Operating Fund (in millions) FY14 Budget projected as of 10/31/13. 6

7 Summary – FY 2014 First submission($18.1 M) After first request($16.3 M) Response to targets (Ask $?) ($8.8 M) After additional challenge ($6.1 M) Desired outcome FY 2014 Improve ‘13 ($4.1) Target FY 2015 > Breakeven

8 FY 2014 Next Steps Expense Control Hiring Plans Soft Freeze Hiring Committee Monitor Unit Accountability Plans Consultant for Shared Services Revenue Enrollment projections Marketing, Recruiting, etc. Other Unit Pro Forma Development Budget Model Revision

9 The Hiring Committee Considerations Consistent with mission/strategy/accreditation/etc. Consistent with hiring plans Included in Budget Compliance with 2014 budget target Reserve status Potential to improve compliance with CRR  Compliance with minimum faculty load

10 CRR Regular Faculty Workload Policy “No regular faculty member can be assigned either fewer than 12 section credits or fewer than 180 student credit hours per academic year without an instructional waiver requested by the Department Chair and issued by the Dean …” At $270 per UG-SCH, 180 SCH = $48,600 per year How does this compare to average compensation? Should tuition cover other costs? What level of compliance do we have with these minimum standards? What would be the value of increased compliance? What would be the downside to compliance? How much of our current challenge could be met with improvement?

11 BACK UP SLIDES

12 Enrollment Growth FS08 to FS13

13 Salaries and Wages All Funds (in millions)

Change in Net Assets (Operating Fund) Academic UnitsFY11FY12FY13 Arts and Sciences(2,019,225)(3,235,929)(1,184,078) Biological Sciences(709,452)(864,843)202,310 Bloch School(931,556)(1,628,552)(1,721,053) Conservatory(291,409)(119,484)(450,736) Dentistry576,219(219,836)453,360 Education409,524(254,289)(864,699) Computing/Engineering(473,286)(949,042)(1,443,851) Law338,534(50,885)(285,716) Nursing(1,642,125)(431,613)(460,832) Medicine1,762,902482,6022,364,498 Pharmacy950,3452,640,055(332,440) Graduate Studies21,5339,208246,118

Change in Net Assets (Operating Fund) Other Academic FY11FY12FY13 University College 08,595121,247 KC Rep61,05010,07870,300 Academic Affairs1,324,101(78,634)(562,396) Information Services (262,140)(590,185)(2,677) Research1,742,092(950,795)(266,819) Libraries30,56410,846192,044

Change in Net Assets (Operating Fund) Non- academic FY11FY12FY13 Chancellor(12,438)(244,403)242,710 MCOM(68,817)(99,454)(69,984) Advancement148,04951,920(265,156) Administration/F inance (2,634,594)2,624,391(2,125,877) Diversity(299,038)(400,054)(313,081) Human Resources 86,52417,65556,039 Scholarships/wai vers 2,618,1464,207,5262,234,278 Student Affairs(288,304)868,239(975,410) Campus wide/adj. 819,139(402,399)1,130,368

Operating Margin by Campus Campus Columbia9%6% Missouri S&T 8%6%5% St. Louis12%4% Kansas City1% 0%

Net Operating Sources (Uses) by Campus (in millions) Campus Columbia Missouri S&T St. Louis Kansas City2.53.0(.3)

Change in Net Assets by Campus (in millions) Campus Columbia Missouri S&T St. Louis (4.9) Kansas City1.30.4(4.0)

20 FY 2014 Next Steps Expense Control Hiring Plans Soft Freeze Hiring Committee Monitor Unit Accountability Plans Consultant for Shared Services Revenue Enrollment projections Marketing, Recruiting, etc. Other Unit Pro Forma Development Budget Model Revision