1. Planning and Budget Committee
January 22, 2016

2. 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?

3. 1st Quarter Results

4. 1st Quarter Results Budget Reflecting Sequester of Funds

5. Reserves after Sweep

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

7. 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/ $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.

8. 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

9. SACSCOC Reaffirmation
Core requirement
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.

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

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

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

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

14. 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

15. 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

16. 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

17. Questions?