Management Report Meeting Wednesday, April 29, 2009

2 Carryforward Analysis Anticipated Carryforward – FY09 Year End & Percent to Total Revenues  Juneau – $ % of unrestricted and restricted revenue  Ketchikan – $ % of unrestricted and restricted revenue  Sitka – $ % of unrestricted and restricted revenue

3 FY10 Planned Use of Carryforward  Juneau Bridge funding for Language Restoration Faculty Bridge funding for institutional support & student services staff One time funding for Schools of Management & Career Education  Ketchikan Small, one-time institutional needs  Sitka Small, one-time institutional needs

4 FY09 Budget Building Process Executive Cabinet  Align projects with Strategic and Master Plans Establish assumptions & sets targets Budget Office  Develop Scenarios Analysis of prior year revenues & expenses Project new costs/new revenues Additional need after new State Appropriation Anticipated vacancies, one-time expenditure needs  Request Budget Plans from Departments and Schools

5 FY09 Budget Building Status & Challenges Status is On-going  Chancellor approval to fill vacancies – required 2 month vacancy  Continuous review of spending plans through management reporting Challenges  Continuing progress toward 50/50 GF/NGF in professional schools  Moving programs forward without new funding  Accumulation of 1% performance pool

6 FY09 Budget Flexibility Flexibility provided by:  Accumulated 2% pool Chancellor’s performance pools Chancellor’s reallocation pool (funded by salary savings)

7 FY09 Revenue & Expenditure Projections Revenues  Sufficient authority in all revenue sources Expenditures  Will not exceed revenues  Auxiliaries utilizing fund balances Housing renovations – new roofs, apartment renovations

8 FY09 Management of Contingencies Contingency Pools -- FY09  Zero funded at beginning of year Funds are pooled as they become available Written justification required Chancellor makes final decisions regarding use of pool funds  2% pool for internal reallocation Exceeds 100% of targeted amount for FY09

9 FY09 Management of Initiatives UAS  All Initiatives on track  Anticipate fully expending all initiative funds

10 Debt Strategies & Plans Strategy  Capacity to be used for long-term debt  Meets UAS’ planning objectives & vision Directly impacts student recruitment & retention 1,000 full time students Increase residential program students  Future Debt: Student Housing Dorm Addition Source – University receipts & auxiliary receipts Sufficient capacity

11 Initial Budget Analysis – FY10 Status  List of needs identified for FY10 Sources of funding required: reallocation/new tuition  Using SW guidelines, local calendar and guidelines Budgeted Carryforward  Some carryforward will be used in authorized budget

12 Grant Receivables by Quarter

13 Average Grant Receivable as % of Revenue

14 Impact of Reduced Endowment on Development FY09  54.7% of funding from Foundation Foundation funded 1.5 FTE FY10  Budget reduced from $405.5 to $183.5 Loss of at least 1.0 FTE; reallocation needed for.5 FTE

15 FY09 Cost Savings & Efficiencies Savings  $650.9 to date (includes salary savings) Conversion of Easy Biz Miles ($24.0) Collection of debts previously identified as uncollectible ($200.0) Researching ecommerce postage ($18.0) New computer specifications & warranty support ($27.0) IT helpdesk call queue management ($50.0) Continued energy conservation efforts – not quantifiable

16 M&R, R&R Expenditures:  FY08 = $2,777.2  FY09 projected = $4,408.0  FY10 projected = $2,485.0 (projects listed on page 12 of review handout)