Finance & Investment Committee FY2016/2017 1st Quarter Results October 21, 2016

FY 2016/2017 First Quarter Financial Results Financial Overview Summary Operating Statement September and First Quarter Results Sales Assessment Investment Results Financial Statements September Year-over-year Comparison Contribution History/Wage Impact

FY 2016/2017 First Quarter Financial Overview Operating results behind Plan Timing Variances on Sales and Credit & Revenues Sales $531K (5.2%) behind plan Textbooks down $249K (6.0%) from budget Residential Dining down $169K (8.1%) Slow summer Sales Margins running half point below plan Operating Income on plan Delayed hiring/Expense deferal -Textbook/Verba Link fixed ID Card Sales were a timing benefit. Budgeted later.

FY 2016/2017 First Quarter Financial Overview (cont’d) Major Capital Projects completed Expenditures in line and awaiting campus invoicing Cash flow of $556K for Q1(False Positive) Investment Portfolio up $380K $520K Campus Track Loan reimbursement PERS Payment of $228K Minimum wage impact pending -Textbook ID Card Expense/Sales were a timing impact. Invoice pending from CO.

Operating Statement Summary September and 1st Quarter Results Credits & Revenues missed budgeted Coke Sponsorship funding

Current Year Expenditures of $421,250 FY2016/2017 Q1Capital Status Current Year Expenditures of $421,250 $294,841 Amazon Locker ($567K Budget) Project complete and awaiting campus invoicing $48,647 USU EBT Project ($47K Budget) $18,301 Prior year project Carry over Ongoing miscellaneous projects

Capital Expenditure Status FY 2016/2017 September YTD Amazon and USU EBT Projects completed - Awaiting final invoicing from campus

Smith Barney Portfolio FY 2016/2017 Performance Portfolio up $360,765 (4.5%) for the Quarter

SMIF Portfolio FY 2016/2017 Performance Portfolio up $441 (.3%) for the Quarter $240K up since 9/30/11

Financial Statements Overview September 2016 Investment Report Cash/Investment up $2.5M from last year Campus paid of $520K track Loan $960K Investment swing ($580K YTD loss last year) $500K Pending payments to Campus, Sales Tax, Capital Balance Sheet Cash per Investment report A/R down $1M - $500K Athletics loan Inventory up $260K, A/P up $300K Employee Long Term Liability up $600K Cash Flow Statement September/Q1 Cash Flow of $1,071K/$556K Track Loan repayment and Investments. Rest operational. PERS GASB 68 Payment of $228K in July

Investment Designation Report September 2016 PERS GASB 68 Payment of $228,312 in July $520K Receipt in September for Track Loan Investment turn around $300K+ pending for Athletics, Housing, Campus Sales tax due

Balance Sheet – September 2016 Update Cash Up from last year Fall Housing payment ($2.7M) received in September this year Monthly VEBA funding of $50K chipping away at Post Retirement but PERS now added to the mix.

Cash Flow – September 2015 September/Q1 Cash Flow of $983,567/$528,117. Driven by Track Loan reimbursement $520K, Investment $381K PERS Payment and Monthly VEBA Funding

FY 2015 & 2016 Year-to-Year September YTD Comparison Q1 results tracking behind of last year Sales trailing in Textbooks and Residential Dining Summer Activity Margins a half point lower Awaiting second half minimum wage impact Investments turn around from loss position

September Operating Statement Year-to-Year Comparison

Contribution History

Financial History Contribution Reporting Need to Formally Define Budget Base Target for Incentive Need to Address how to achieve that Target Paradigm Shift between Books and Food Ongoing Minimum Wage Impact threatens success

Financial History Contribution Reporting Official Reported Results Skewed by investments and Accounting adjustments Accounting for Extraordinary events includes PERS and Post Retirement Medical History only Reported the liability Cash requirement Pending and Ongoing Ongoing historical catchup/Payments for PERS Post Retirement Medical being covered through VEBA

Sales and Contribution History (Per Audit )

Contribution History (by Category) Post Retirement Medical Economic Melt own PERS/Post Retirement PERS

FY 2015/2016 Pro-Forma Operating Results

Contribution History Net of Non-Operational Items Meal Price Increases/Textbook Challenges Staff/Benefit reductions Historical TextBook Cash Cow Pricing slowdown/Minimum wage challenges Economic Meltdown

Escalating HR Costs to Consider Minimum Wage Increases Effective Date Old Rate Final Minimum Wage Mandate Increase Amount Average Labor Hours Projected Total Impact (align CA & LB) January 1, 2014 $8.00 $9.00 $1.00 469,768 $ 469,768.00 January 1, 2016 $10.00 January 1, 2017 $10.50 $0.50 $ 234,884.00 January 1, 2018 $11.00 January 1, 2019 $11.50 $12.00 January 1, 2020 $12.50 $13.00 January 1, 2021 $13.50 $14.00 January 1, 2022 $14.50 $15.00 $ 2,348,840.00 These total average hours are based on: - Full time hourly employees - Part time employees - Majority part time student workforce