1. Financial Trends and Highlights

2. Education for Employment Mission 2

3. Strategic Goals FY11 Diversity Enrollment Engagement Teaching and Learning Financial Stewardship 3

4. Current Financial Health 4

5. Composite Financial Index Trends 201120102009 Primary reserve1.030.860.77 Return on net assets0.761.311.97 Viability3.503.102.47 Operating margin0.200.290.08 Composite5.505.565.30 Note: The values above are all weighted values and have been modified for GO Bonds/Capital Appropriation Source: www.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengths www.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengths 5

6. Source: www.finance.mnscu.edu/accounting/financialstatements 6

7. Technical College Comparison of Financial Composite Index Ratios for 2011 CFI Component Ratios Primary Reserve Return on AssetsViability Operating MarginComposite DCTC1.030.763.500.205.50 Alexandria Tech0.440.400.620.141.60 Anoka Tech0.560.760.770.372.45 Hennepin Tech0.582.001.71(0.02)4.26 South Central College0.612.003.500.596.69 Southeast Tech0.480.791.030.312.61 St. Cloud TCC1.341.231.850.414.82 Group Average 0.721.131.850.283.99 DCTC – Above or Below Avg. 0.31(0.37)1.65(0.08)1.51 Source: www.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengthswww.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengths 7

8. Per Full Year Equivalent Student Data 201120102009 Total Operating Expense 12,18812,72914,254 Direct Student Expense 8,2168,1568,934 % direct student expense 67.4%64.1%62.7% Student-based Revenue 6,8607,3017,379 % of total revenue* 52%51%45% Appropriation Revenue 4,0674,4255,744 % of total revenue* 31% 35% Operating Margin per FYE** 331492158 % Change in student FYE 3%13%5% * Excluding all capital appropriation for capitalized projects. ** Add back HEAPR revenue equal to HEAPR projects expensed Source: System-Wide Ratios.xls (provided by Minnesota State Colleges and Universities) 8

9. Source: Audited Financial Statements 9

10. State Revenue Support Source: Audited Financial Statements and 2012 appropriations 10

11. Capital Assets--Investment, Age and Maintenance Ratios:201120102009 Additions to beginning depreciable cost (investment)0.070.030.11 Ending accumulated depreciation to depreciation expense (age) 27.5623.9325.30 Facilities maintenance ratio0.100.110.13 Operations and Maintenance expense per square foot$5.73$6.46 $7.07 Source: FY11 Bld and CIP Leadsheet 11

12. Technical College Comparison of Capital Assets/Facilities Ratios Capital Assets/Facilities RatiosInvestmentAge Facilities Maint Ratio Op & Main Exp/Sq Ft DCTC0.0727.60.10$5.73 Alexandria Tech0.037.80.09$5.01 Anoka Tech0.0416.10.12$7.50 Hennepin Tech0.3518.30.12$7.25 South Central College0.0436.90.06$6.13 Southeast Tech0.0218.60.08$6.84 St. Cloud TCC0.0110.80.07$5.78 Group Average0.0818.30.09$5.33 DCTC – Above or Below Avg. (0.01)1.40.01$(0.59) 12

13. Factors that Affected the College in FY11 Increasing program efficiency Utilized external/federal dollars and internal profit centers Obtained external in-kind donations to support technical education Declining state appropriation Consistent enrollment growth Rising costs of equipment and materials necessary to meet industry standards in technical education Substantial increase in use of financial aid, third-party billing, and collections Meeting the criteria of external accrediting bodies and organizations 13

14. Evolving Financial Factors State and federal revenue support Diversification of alternative resources Enrollment uncertain Establishing appropriate tuition rates Changes in salary and benefit expenses Impact of negotiated employment agreements Cost of maintaining facilities and equipment necessary for technical education Shifting needs and expectations of students’ educational experiences 14

15. Future Financial Health 15

16. Source: ISRS screen AR0101UG “Tuition Rates Entry” 16

17. Budget Principles for the Future Incorporate MnSCU strategic framework and newly adopted DCTC strategic directions Serve the economic development needs of Dakota County and the region Demonstrate stewardship through financial accountability to stakeholders Sustain long-term financial viability through planning and collaboration Provide student environment that leads to desired student outcomes 17

18. Plans to Strengthen Future Financial Health Continue to maximize enrollment for programs Maximize efficient use of all facilities Diversification of revenue streams Continually evaluate staff and program efficiency Implement shared administrative service functions and/or campus cooperative efforts with other MnSCU colleges Implement new retention initiatives Leverage partnerships Pilot tuition incentive model 18

19. A member of the Minnesota State Colleges & Universities system and an affirmative action, equal opportunity employer and educator. This document is available in alternative formats to individuals with disabilities by calling 877-937-3282 or TTY: 651-423-8621.