Planning and Budget Committee

November 13, 2015

Agenda

• What’s the ‘real’ story? – Year-end Results• Why didn't we know? – July 2014 position• Where did the money go? - Breakdown of

expenditures• Why did you take my money? -Impacts of multiple

years of deficits.– 15% Sequestration– Sweeping of Reserves

• Why this year?

Year End Results FY 15 versus FY14

Budget 2014-15 Actual FY15 Actual FY14

TOTAL REVENUES $68,989,855.07 $69,052,047.56 $69,460,193.14 TOTAL PERSONNEL COSTS 47,607,018.07 47,170,973.22 47,106,879.45 TOTAL OPERATING EXPENDITURES 21,882,593.00 23,334,259.99 23,741,721.52 TOTAL INTERDEPARTMENTAL TRANSFERS 499,756.00 TOTAL OPERATING TRANSFERS IN 0.00 35,246.24 549,355.81Excess Expenditures Over Revenue $0.00 -$1,417,939.41 -$839,052.02

Auburn University at Montgomery Financial PositionYear End Results - FY 15 versus FY 14

ContinuingAnnual Budget Commitments

Continuing Sources of Funding

Comparing Operating Revenues FY 08 – FY16

Endowment, Investment, Indirect Cost, etc.

FY 08State

Appropriations47%

FY 16State

Appropriations26%

FY 08Tuition/Fees

32%

FY 16Tuition/Fees

49%

FY 08Other Income

21%

FY 16Other Income

25%

FY 2015 as of 07/31/2015

Budget 2014-15 Year-to-Date Projected 2014-15

TOTAL REVENUES $68,989,855.07 $58,186,875.63 $70,026,153.00 TOTAL PERSONNEL COSTS 47,607,018.07 39,154,621.45 47,040,000.00 TOTAL OPERATING EXPENDITURES 21,882,593.00 19,061,729.32 23,398,000.00 TOTAL INTERDEPARTMENTAL CREDITS 499,756.00 TOTAL OPERATING TRANSFERS IN -240,834.05 -150,000.00Excess Expenditures Over Revenues $0.00 -$270,309.19 -$561,847.00

Auburn University at Montgomery Financial PositionFor Period Ending July 2015 and Projections through September 2015

Five Years of Results

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Difference

FY11 to FY15State Appropriations $22,826,807 $22,863,408 $21,947,664 $22,557,727 $22,663,801 ($163,006)Tuition and Fees 36,747,994 35,994,084 39,596,990 41,754,747 40,720,855 3,972,861Interest Earned 574,681 584,462 423,498 375,960 340,836 (233,845)Indirect Cost Recovery 1,216,239 1,188,916 1,280,597 859,361 969,992 (246,247)Sales and Services 2,502,387 2,473,617 2,734,568 2,619,222 2,456,714 (45,673)Contract & Grant Revenue 93,493 129,970 351,025 303,911 205,261 111,768Other Revenue 1,344,284 696,675 1,339,298 989,266 1,694,589 350,305

TOTAL REVENUE $65,305,885 $63,931,132 $67,673,640 $69,460,194 $69,052,048 $3,746,163Personnel Costs 40,333,313 44,141,132 45,917,983 47,106,880 47,170,973 6,837,660Operating Expenses 19,271,944 23,136,468 22,644,660 23,741,721 23,334,260 4,062,316

TOTAL EXPENDITURES $59,605,257 $67,277,600 $68,562,643 $70,848,601 $70,505,233 $10,899,976Operating Transfers (1,424,911) (1,735,257) (170,683) 549,355 35,246

NET SURPLUS/DEFICIT $4,275,717 ($5,081,725) ($1,059,686) ($839,052) ($1,417,939)

End of Year Results FY 2011 - 2015

Five Years of Results

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Difference

FY11 to FY15State Appropriations $22,826,807 $22,863,408 $21,947,664 $22,557,727 $22,663,801 ($163,006)Tuition and Fees 36,747,994 35,994,084 39,596,990 41,754,747 40,720,855 3,972,861Interest Earned 574,681 584,462 423,498 375,960 340,836 (233,845)Indirect Cost Recovery 1,216,239 1,188,916 1,280,597 859,361 969,992 (246,247)Sales and Services 2,502,387 2,473,617 2,734,568 2,619,222 2,456,714 (45,673)Contract & Grant Revenue 93,493 129,970 351,025 303,911 205,261 111,768Other Revenue 1,344,284 696,675 1,339,298 989,266 1,694,589 350,305

TOTAL REVENUE $65,305,885 $63,931,132 $67,673,640 $69,460,194 $69,052,048 $3,746,163Personnel Costs 40,333,313 44,141,132 45,917,983 47,106,880 47,170,973 6,837,660Operating Expenses 19,271,944 23,136,468 22,644,660 23,741,721 23,334,260 4,062,316

TOTAL EXPENDITURES $59,605,257 $67,277,600 $68,562,643 $70,848,601 $70,505,233 $10,899,976Operating Transfers (1,424,911) (1,735,257) (170,683) 549,355 35,246

NET SURPLUS/DEFICIT $4,275,717 ($5,081,725) ($1,059,686) ($839,052) ($1,417,939)

End of Year Results FY 2011 - 2015

TotalAnnual Budget

Comparing Total Budgets FY 08 – FY16

FY 08Operating

76%

FY 16Operating

69%

FY 08Restricted

17%

FY 16Restricted

19%

FY 08Auxiliary

7%

FY 16Auxiliary

12%

TotalOperating

Budgets$69 M

Operating BudgetsFY16

Personnel$47.2 M68.2%

O&M$21.9 M 31.8%

Fixed Salaries,Wages and

Benefits$46 M, 97.5%

Part-timeWages1.2 M, 2.5%

Fixed O&M $8.3 M, 38%

Scholarships $5.4 M, 25%

Other O&M $8.2 M, 37%

Available to SequesterPart-Time Wages

$9,371,153Other Operating

Total Sequester @ 15% $1,405,673

Total Deficit FY 14($1,417,939)

History of Cash and Reserves

As of 9/30 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Budget Reserve $8,283,511 $15,943,026 $11,299,675 $12,048,582 $13,922,238Cash Balance $21,900,984 $13,893,874 $11,465,242 $10,355,292 $7,458,403Excess Cash $13,617,473 ($2,049,152) $165,567 ($1,693,290) ($6,463,835)% of Reserves Covered by Cash 100% 87% 100% 86% 54%

Cash-On-Hand vs Reserves at Year-EndFY 2011 - FY 2015

Reserves BeforeBase Budget $ 7,919,558Self-Supporting $ 5,069,524IDC $ 736,583Matching Funds $ 196,573 TOTAL $13,922,238

Reserves AfterBase Budget $ 746,714Self-Supporting $5,069,524IDC $ 736,583Matching Funds $ 196,573One-Time Suppl $ 694,000

TOTAL $7,443,394

BANNER Verification of Cash Balance

Why this Year?• FY 15 fourth year of deficits – cumulative deficit total

of $8,398,402.• Since FY 11 – Revenue has increased 5.7% or

$3,746163. Expenditures have increased 18.3% or $10,899,976.

• Revenue went down from FY 14 to FY 15 by approximately $400,000.

• Currently have cash to cover only 54% of the total reserves.

AUBURN UNIVERSITY - AUM BUDGET OF REVENUE October 1, 2015-September 30, 2016

2015-2016 ESTIMATED 2015-2016 ESTIMATED 2015-2016 ESTIMATED 2014-2015

REVENUE REVENUE REVENUE REVENUE PERCENT

UNRESTRICTED RESTRICTED TOTAL TOTAL CHANGE

AUBURN UNIVERSITY AT MONTGOMERY

I. CURRENT FUNDS

A. STATE APPROPRIATIONS 22,775,297 22,775,297 22,663,801 0.49%

B. STUDENT FEES & CHARGES

Tuition 41,741,818 41,741,818 40,738,730

Administrative Service Fee 440,000 440,000 425,000

Student Activity Fee 135,000 135,000 120,000

Technology Fees 965,000 965,000 940,000

Total Fees 43,281,818 43,281,818 42,223,730 2.51%

C. OTHER INCOME

Interest Earned 350,000 350,000 400,000

Indirect Cost Recovery 825,000 825,000 652,681

Sales & Services 1,938,958 1,938,958 1,677,220

Gifts, Grants & Contracts 18,740,659 18,740,659 20,474,569

Total Other Income 3,113,958 18,740,659 21,854,617 23,204,470 -5.82%

TOTAL CURRENT FUNDS 69,171,073 18,740,659 87,911,732 88,092,001 -0.20%

II. AUXILIARY ENTERPRISES 12,127,045 12,127,045 11,509,657 5.36%

TOTAL REVENUES - AUM 81,298,118 18,740,659 100,038,777 99,601,658 0.44%

SOURCE OF FUNDING

FY 16 Budget

So….What Does This Mean?

• Continue to add programs that will attract students

• Continue our planned marketing and recruiting efforts

• Continue retention efforts

Questions?