Fiscal Strength Finding the balance at UMass Boston.

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Fiscal StrengthFinding the balance at UMass Boston

1Fiscal Strengthoperating margin2.5% actual FY122% targetfinancial cushion 28.2% actual FY12>20% targetreturn on net assets8.2% actual FY125% targetdebt ratio5% actual FY128% thresholdendowment/FTE$4,711 actual FY12$7,669 UMass avg2Fiscal Strengthoperating margin2.5% actual FY122% targetfinancial cushion 28.2% actual FY12>20% targetreturn on net assets8.2% actual FY125% targetdebt ratio5% actual FY128% thresholdendowment/FTE$4,711 actual FY12$7,669 UMass avgoperating margin should exclude market value adjustments for investmentswe should be using interest expense not interest paid and we should consider a revised calculation which adds in principal payments to the expenses and takes out depreciationStart with Income Before Other Revenues, Expenses, Gains & lossesSubtract the value of the Build America Bond subsidySubtract the amount of interest expense that was capitalizedAdd back depreciationSubtract the amount of principal payments madeSubtract transfers to Quasi Endowment (which will move up to Restricted Expendable net assets)Subtract transfers to Plant in support of the Master Plan

3Fiscal StrengthRevenue diversityEnrollmentStudent feesState supportGrants (federal, state)Other (private, ESS, auxiliaries)

Financial managementExpenditure controlReportingMulti-year planningAnalysis

Asset basePhysical infrastructureDeferred maintenanceIT infrastructure

Financial flexibilityEndowment (investments)Reserves (net assets)Debt

4Fulfilling the Promise

5Fiscal StrengthEnrollmentStudent feesState supportGrants (federal, state)Other (ESS, Auxiliaries)

Expenditure controlReportingMulti-year planningAnalysis

Physical infrastructureDeferred maintenanceIT infrastructureEndowmentInvestmentsReservesDebt

6Revenue diversitybreadth of unique revenue streamsEnrollmentFederal support volatility federal financial aid in- or out-of-state federal grants undergraduate, graduate, PhD

Student fees Private fund-raising tuition policy capital campaign(s) mandatory fees gifts differential fees endowment waiver policies public/BoT/legislative interest

State support Other annual appropriation auxiliary services state financial aid ESS state ISAs, contracts, grantsEnrollment (FTE)

Student feesAsset baseinvestment in physical assetsPhysical infrastructure (size, composition, quality)sq ft inventoryhow is space used (classrooms, conference rooms)quality of spaces (expectations, stds or peers)

Deferred maintenancecurrent conditionsmechanical systems vs fluff & buff (painting, carpet)proactive vs reactive

IT infrastructurechanging technologyUITSFinancial flexibilityability to respond to external eventsEndowment (investments) Governance local external (Presidents Office, State) quasi permanent

Reserves current level comparison to peers

Debt current level, expected growth financing (availability, cost)Debt

Expense managementdemonstrate effective cost management & long-term planningExpenditure controlAnalysis actual to budget results depth of understanding growth trends evidence informs plans comparison to peers linked to outcomes inform actions

Reporting integrity of data systems that support customers mgmt reporting that informs decision

Multi-year reporting capital plan breadth of understanding enrollment planning decision horizon integrity of modelingExpense GrowthFY13 = balanced budget

Fiscal StrengthEnrollmentStudent feesState supportGrants (federal, state)Other (ESS, Auxiliaries)

Expenditure controlReportingMulti-year planningAnalysis

Physical infrastructureDeferred maintenanceIT infrastructureEndowmentInvestmentsReservesDebt

15Fiscal StrengthEnrollmentStudent feesState supportGrants (federal, state)Other (ESS, Auxiliaries)

Expenditure controlReportingMulti-year planningAnalysisPhysical infrastructureDeferred maintenanceIT infrastructureInvestmentsReservesDebt16Planning for FY14Expenditure controlfund consolidationchanges to budget process

Reportingpersonnel vs operatingvacancy factorexpanded mgmt reportingmore education, training options

Multi-year planninggreater involvementmake it meaningful

Analysisexpanded partnerships btw academic & support areasissue & policy papersFiscal StrengthRevenue diversityEnrollmentStudent feesState supportGrants (federal, state)Other (private, ESS, auxiliaries)

Financial managementExpenditure controlReportingMulti-year planningAnalysis

Asset basePhysical infrastructureDeferred maintenanceIT infrastructure

Financial flexibilityEndowmentReservesDebt

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