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Officers of Administration Annual Meeting October 10th, 2013.

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Presentation on theme: "Officers of Administration Annual Meeting October 10th, 2013."— Presentation transcript:

1 Officers of Administration Annual Meeting October 10th, 2013

2 Agenda Financial Update Governance Transition Other Key Initiatives Questions 2

3 Financial Update Overview – UO Budget Structure Financial Update – End of FY13 Projected Revenue Streams – FY14 and beyond Key Issues Going Forward 3

4 School & College Budgets UO Budget Structure 4 E&G Funds Other Funds Central Admin Budgets Insitutional Expenses (Debt, assessments, utilities, leases) Tuition revenue State Appropriation F&A Return Overhead revenue Fee revenue, interest earnings Grants and Contracts revenue Auxiliary Revenue Service Center Revenue Designated Operations Revenue Restricted gifts Grants & Contracts Plant Funds Auxiliary, Service Centers, and Designated Ops Funds Restricted Gifts

5 Financial Resources FY2013 Revenue Streams 5 State Appropriation$46.4 million

6 Decreased levels of State Appropriation Loss of more than $30 million of annual support per year

7 University Resources FY2013 Revenue Streams 7 State Appropriation$46.4 million Resident Tuition$119.1 million Non-resident Tuition$241.8 million

8 8 Increasing Dependence Upon Non-Resident Tuition

9 School & College Budgets UO Budget Structure 9 E&G Funds Other Funds Central Admin Budgets Institutional Expenses (Debt, assessments, utilities, leases) Tuition revenue State Appropriation F&A Return Overhead revenue Fee revenue, interest earnings Grants and Contracts revenue Auxiliary Revenue Service Center Revenue Designated Operations Revenue Restricted gifts Grants & Contracts Plant Funds Auxiliary, Service Centers, and Designated Ops Funds Restricted Gifts

10 E&G Fund Balance (millions)

11 E&G Carry Forward Balances

12 School & College Budgets UO Budget Structure 12 E&G Funds Other Funds Central Admin Budgets Institutional Expenses (Debt, assessments, utilities, leases) Tuition revenue State Appropriation F&A Return Overhead revenue Fee revenue, interest earnings Grants and Contracts revenue Auxiliary Revenue Service Center Revenue Designated Operations Revenue Restricted gifts Grants & Contracts Plant Funds Auxiliary, Service Centers, and Designated Ops Funds Restricted Gifts

13 Unrestricted Net Assets (thousands) 2.5 Weeks 4.5 Weeks 6.8 Weeks 7.2 Weeks 7.0 Weeks Operating Cost Coverage

14 Agenda Overview – UO Budget Structure Financial Update – End of FY13 Projected Revenue Streams – FY14 and beyond Key Issues Going Forward 14

15 Major Recurring Sources of Operating Funds – E&G Funds (Pre PERS Buy Out) Tuition revenue – Resident Undergraduate – capped at 3.5% FY14 & FY15 – Non-Resident Undergraduate – market pressure State Appropriation – Early projection without buy-down: 1.1% increase in FY14 and 3.0% increase in FY15 (3.0%/4.8% with buy down) F&A Return – Dropped $1.5 million in FY13 and likely to drop another $1.0 million in FY14

16 Major Recurring Sources of Operating Funds – E&G Funds FY2012FY2013 FY Projections FY ProjectionsNotes: Net UG Tuition $ 243,200,000 $ 264,200,000 $ 269,500,000 $ 275,000,000 Assumes approximately 3% average FY15 tuition inrease, no substantive change of plan in size or mix of UG population. FY14 permanent $859K tuition buy down for state app; assumes additional $859K tuition buy down in FY15 Net G Tuition (after GTF/Law rem) $ 36,100,000 $ 34,900,000 $ 34,300,000 $ 35,200,000Probably an overestimate in FY2015 Summer Session $ 13,700,000 $ 17,300,000 $ 18,700,000 $ 19,200,000Possibly an underestimate in FY15 Continuing Education $ 10,200,000 $ 11,800,000 $ 12,200,000 $ 12,500,000Also might be an underestimate in FY15 Other Tuition and Fees* $ 11,300,000 $ 12,200,000 $ 13,500,000 $ 14,100,000 * Matriculation, Special Student Tuition, 17XXXX (approx 8M), New International Fee inFY14 - ramping up over 4 years. Other assumptions same as tuition. State Appropriation $ 50,300,000 $ 46,400,000 $ 47,800,000 $ 50,100,000 Gross State Appropriation; includes $859K FY14 tuition buy down and additional $859K FY15 tuition buy down; also includes estimate of recurring incentive funds - same as FY13 ($617K) Overhead $ 6,800,000 $ 8,600,000 $ 8,500,000 $ 8,800,000New rate structures ramping up over four years F and A recovery $ 20,700,000 $ 19,200,000 $ 18,200,000 $ 17,300,000FY14 and 15 estimates carry substantial uncertainty Total Operating Funds $ 392,300,000 $ 414,600,000 $ 422,700,000 $ 432,200,000 Year to year growth5.68%1.95%2.25% 3.28%Annualized Growth Rate over three years.

17 Key Issues Going Forward Salary increase funding in the context of available revenue Human & Capital infrastructure to support campus growth 17

18 Context: Rapidly Growing Student Enrollment CONFIDENTIAL – INTERNAL ADVISORY COMMUNICATION

19 YearStudentsTenure Related Faculty Student / Tenure Related Faculty Ratio FY200820, FY200921, FY201022, FY201123, FY201224, FY201324, Additional Tenure Related Faculty Hiring CONFIDENTIAL – INTERNAL ADVISORY COMMUNICATION

20 Student / Tenure Related Faculty Ratio To return to FY2008 Ratio of 31.7 – Need 60 Tenure Related Faculty To return to FY2000 Ratio of 27.9 – Need 166 Tenure Related Faculty CONFIDENTIAL – INTERNAL ADVISORY COMMUNICATION

21 Classroom Infrastructure CONFIDENTIAL – INTERNAL ADVISORY COMMUNICATION

22 Key Issues Going Forward Salary increase funding in the context of available revenue Human & Capital infrastructure to support campus growth PERS and PEBB Costs 22

23 Governance Board New University of Oregon Board of Trustees Major functions University of Oregon will likely take over from State Board of Higher Education – Treasury Functions (Debt & Cash Management) – Preparation of Audited Financial Statements – Payroll tax reporting – Internal Audit – Retainer contracts, P-Card Program – Risk Management (TBD) Ongoing discussions: Shared Services and governance structure for regional and technical institutions 23

24 Other Key Initiatives New CHRO / Restructuring HR Functions New Version of Academic Budget Model Expanded Focus of Tuition & Fee Advisory Board Implementation of new faculty CBA Development of facilities plans 24

25 Questions? 25


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