1. Board of Trustees Retreat Budget Overview
Robert Pompey
Vice Chancellor for Business and Finance
July 15, 2016

2. Agenda University Financial Profile State Fund Budget vs. Actual
State Appropriation Budget FY (previously approved)
Short Session Budget Update
A&T Foundation Update

3. University Financial Profile
FY FY 2015
Assets $396 million $442 million
Endowment Market Value $20 million $47 million 
Property Plant and Equipment $303 million $333 million
Liabilities $38 million $58 million 

4. University Financial Profile (continued)
FY FY 2015
Long-term Debt $24 million $46 million 
Net Assets $358 million $373 million 
Revenues $206 million $250 million 
Expenses $229 million $246 million
Moody’s Credit Rating N/A A-1

5. State Fund Budget vs. Actual Analysis as of May 31, 2016 (000’s omitted)5

6. SHORT SESSION UPDATE

7. SB 873 - ACCESS TO AFFORDABLE COLLEGE EDUCATION ACT
Fixed Tuition and Fees
Fees capped at 3% increase (currently 5% for Board of Governors approved fees)
Tuition Reduction (ECSU, UNCP and WCU)
18% enrollment cap review for the above Universities
In-state tuition – nonresident graduate research or graduate teaching assistants
Cheatham White Scholarship (NC A&T and NCCU)

8. (undergraduate students)
FIXED TUITION AND FEES
(undergraduate students)
Fixed tuition for each incoming class for 4 years
Excludes summer sessions
Effective Fall 2016
Tuition increases will only apply to incoming freshmen and transfer students

9. Fixed Tuition and Fees - Impact
Example of
Fixed Tuition and Fees - Impact
Tuition increase - $100
Freshmen and Transfers FTE - 1,800
Continuing Undergraduate FTE - 6,200
Total Undergraduate FTE – 8,000

10. Fixed Tuition and Fees – Impact
Example of
Fixed Tuition and Fees – Impact
(continued)
Increase in Tuition Revenues
Current Guidelines $800,000
Proposed Legislation $180,000
Impact of Legislation ($620,000)

11. Cheatham – White Scholarships
Scholarship funds for exceptional students
Fashioned similar to Morehead and Park Scholarships
Includes tuition, fees, room, board, supplies, and international travel experience
50 student awards per year – 40 resident and 10 nonresident

12. Cheatham – White Scholarships
(continued)
Funding of approximately $3 million for the program
Private fundraising match required
Effective Fall 2018

13. OTHER BUDGET PROVISIONS
Salary Increases 1.5% +.5% Bonus (across the board increase)
Merit Increase Pool - .75%
Advancement Cap Eliminated

14. FY 2017 Short Session Budget Impact Year Ending June 30, 2017
Reductions
Enrollment Growth Funding Reduction
148,429
Management Flex Budget Reduction
1,880,408
Advancement Program Cap (eliminated)
Total Reductions
2,028,837 14

15. History of Permanent Reductions at North Carolina A&T
Fiscal Year Amount Position Eliminations
$ ,
$ 1,094,
$ 5,139,
$ 4,000,
$ 14,171,
$ 9,200,
$ 4,621,
$ 1,300,
2017 (proj.) $ 2,029,
Total $ 42,147,

16. FOUNDATION UPDATE

17. Overall Goals
Repurpose the North Carolina A&T Foundation to a Real Estate Foundation
Revise the Structure of the Foundation
Transition financial records to the University System
Enhance Operational Structure

18. Current Status Real Estate Focus Adopted Board Members – 9 to 15
Board Chair vs. President
Adopted a Strategic Plan

19. Current Status (continued)
Appointed an Executive Director
Financial Records Transitioned to the University
Foundation Employees are State Employees
Major Functions have been enhanced and consolidated (payroll, receipts, and disbursements)

20. QUESTIONS!