1. TRANSFORMING TUITION PLANNING AT THE UNIVERSITY OF KENTUCKY
ANGIE MARTIN, UNIVERSITY OF KENTUCKY TONY ARD, KAUFMAN HALL

2. TODAY’S SPEAKERS Angie Martin Tony Ard
Vice President for Financial Planning and Chief Budget Officer
University of Kentucky
Tony Ard
Vice President, Higher Education Software
Kaufman Hall / Axiom Software

3. Agenda 1 Current State of Higher Education 2
About University of Kentucky 3
Challenges 4
Goals 5
Key Features and Processes 6
Results and Next Steps 7
Best Practices in Planning

4. CURRENT STATE OF HIGHER EDUCATION

5. SIGNIFICANT CHALLENGES FACING INSTITUTIONS
Funding sources at risk
Growing expenses
Increased competition

6. A NEW REALITY FOR COLLEGES AND UNIVERSITIES
Tuition revenue an increasingly important source of funding
Growth driven by tuition rate increases and international enrollees
Challenges
Affordability
Student debt
More restrictive immigration policies deter applicants from abroad 1
Tuition revenue represents 47% of total revenue at public universities, compared to only 36% 10 years ago
The combined effect of these challenges is already impacting tuition revenue for many institutions, and the prospect of slower, uncertain revenue growth recently led Moody’s to lower its credit outlook for higher education from “stable” to “negative.”3
Transition: University of Kentucky has transformed their tuition planning process to help them overcome these challenges. With that, I’m going to turn it over to Angie Martin from the University of Kentucky.

7. TUITION PLANNING INFORMS OPERATING BUDGET AND LONG-RANGE PLAN
Tuition planning plays a central role in funding most institutions, so planning for future enrollment and tuition is a critical first step in the overall financial planning process.
In both the near and long term, tuition and enrollment are key drivers of operational performance that will determine the institution's ability to fund its programmatic and administrative infrastructure and invest in future growth.
As a best practice, detailed tuition planning should inform the level of spending authorized in the upcoming operational budget and provide a jumping-off point for longer-term tuition planning scenarios that serve as a key input into an integrated, long-range financial plan.

8. ABOUT UNIVERSITY OF KENTUCKY

9. ABOUT THE UNIVERSITY OF KENTUCKY
Public university in Lexington, Kentucky
30,000+ undergraduate and graduate students
20,000+ faculty and staff
$3.9B budget
200+ academic programs, 16 degree-granting colleges
College of Medicine and academic medical center, UK HealthCare
Carnegie Classification: Research Universities (very high research activity)

10. KENTUCKY IN THE NEWS

11. CHALLENGES

12. Needed integrated, accurate, and insightful data
CHALLENGES
Disconnected offline Excel spreadsheet enrollment process
Manual data integration to SAP and ProSam
Data integrity issues
Difficult to model changes in key assumptions
Error-prone annual rollover
Limited reporting and analytics
Needed integrated, accurate, and insightful data

13. CHALLENGES
State-approved budget and parameters for tuition rates come late in the cycle, causing need for last-minute updates
Implementing tuition-sharing agreements with colleges to incent enrollment growth

14. PROJECT GOALS

15. GOALS Integrate enrollment and long-range planning for the university
With support for enrollment scenarios
Enhance reporting and analytics

16. ENROLLMENT PLANNING KEY FEATURES & PROCESSES

17. PROJECT STRUCTURE
Enrollment project includes:
University budget office
Enrollment management
Institutional research
Future expansion
Track tuition sharing agreements with colleges
Institutional scholarship programs

18. ENROLLMENT PLANNING KEY FEATURES
Data model aligned to SAP Student system
Actual enrollment data and rate schedules
User defined enrollment scenarios
Rich set of assumptions
Tuition and fees, enrollment, retention by student type
Planning by semester and year
Reporting
Scenario reports
Ad hoc reporting

19. ENROLLMENT MODEL PROCESS

20. HISTORICAL DATA TABLE

21. HISTORICAL DATA

22. DRIVERS

23. FIRST-TIME, DEGREE-SEEKING UNDERGRADUATES

24. FORECASTING

25. TUITION MODEL

26. CROSSWALK BETWEEN MODEL AND ACCOUNT STRUCTURE

27. BUDGET TABLE

28. MANUAL ADJUSTMENTS Summer, Winter Terms Tuition Sharing Programs
College of Medicine – Expansion Campuses
Bad Debt Expense
Refinements such as projected changes in First-Time Transfers, Retention, Graduation

29. RESULTS

30. RESULTS
Used model to build FY and FY tuition revenue budgets
Allows for comparison of model scenarios to actual results and investigation of variances
Significantly reduced staff time for year-to-year roll forward process and updates
Increased opportunities for data analysis

31. NEXT STEPS

32. NEXT STEPS Model enhancements Transfer students
Projected retention and graduation changes
Net tuition revenue comparisons (net of institutionally-funded scholarships)
Tuition sharing agreements
Ad hoc reporting and Master System User training
Integration with Long-Range Planning Project

33. TUTION PLANNING BEST PRACTICES

34. MODERN TECHNOLOGY OPTIMIZES TUITION PLANNING
Aligns student information with financial data
Fosters collaboration
Performs scenario analysis through flexible modeling

35. Visualize how enrollment and tuition planning data impacts the university’s overall financial plan

36. Guiding strategy and enabling outcomes with comprehensive and integrated financial consulting and performance management software tools. 30
400+
Years
Professionals
Helping senior leaders realize success amid changing market
in offices throughout the United States

37. AXIOM SOFTWARE SOLUTIONS
Strategic Financial Planning
Reporting & Analytics
Budgeting & Forecasting
Long-Range Planning
Executive Dashboards
Budgeting & Forecasting
Capital Planning & Tracking
Financial Reporting
Grants Planning
Tuition Planning
Ad Hoc Reporting
Allocations
Labor should be included, remove allocations
Align financial plans with strategic goals, manage capital initiatives, and communicate key financial metrics and ratios to leadership.
An integrated solution for developing management reports and performing ad hoc analysis.
Engage academic and administrative leaders in budget formulation to align resources and manage financial performance.
© 2018 Kaufman, Hall & Associates, LLC. All rights reserved.

38. OUR INTEGRATED ADVISORY SERVICES
Process Design
Treasury Management
Budget Model Design
Financial Planning
& Analytics

39. QUESTIONS?