1. March 28, 2014 1

2.  Operating Budget Status  Financial Outlook  Continuing Challenges 2

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4.  Personnel Costs $48.7M 72%  Other $19.0 M 28% ▪ Utilities $2.2 M 11.6% ▪ Deferred Maintenance$1.3 M 6.8% ▪ Facilities $1.7 M 8.9% ▪ Scholarships $3.2 M 16.8% ▪ IT Related Expenses $1.3 M 6.8% ▪ All Other (O&M Budgets)$9.3 M 48.9% 4

5. Auburn University at Montgomery Financial Position For Period Ending February 2014 and Projections through September 2014 Budget 2013-14Year-to-DateProjected 2013-14 TOTAL REVENUES$67,701,906.00$34,124,999.53$70,143,054.00 TOTAL PERSONNEL COSTS48,796,741.0021,165,545.1349,724,709.00 TOTAL OPERATING EXPENDITURES19,399,072.009,974,435.6220,624,075.32 TOTAL OPERATING TRANSFERS493,907.00334,642.34493,907.00 Excess Revenues Over Expenditures$0.00$3,319,661.12$288,176.68 5

6.  Operating Budget Status  Financial Outlook  Strategies 6

7. Continuing Annual Budget Commitments Continuing Annual Budget Commitments State Appropriations 32.6% State Appropriations 32.6% Tuition 52.9% Tuition 52.9% Other 12.3% Other 12.3% Reserves 2.2% Reserves 2.2% Continuing Sources of Funding One-Time Source of Funding Operating Revenues Endowment, Investment, Indirect Cost, etc. 7

8. FY08FY09FY10FY11 Actual ProratedActual AUM$30.2$27.1$24.0$22.1 FY12FY13FY14Decrease Actual Since FY08 AUM$22.9$21.9$22.5$7.7 8

9.  Potential growth in the Education Trust Fund will not translate to timely increases in state appropriations due to:  Rolling Reserve Act  PEEHIP pressures  K-12 funding 9

10.  Tuition  Affordability issues & Federal/public scrutiny  Net tuition  Investment returns – very limited  Gifts – typically restricted  Competition for grants and contracts and limits on full recovery of costs 10

11.  Benefit cost increases – TRS, health insurance  Funding for strategic initiatives for year 2  Salary and wage improvement 11

12.  Operating Budget Status  Financial Outlook  Strategies 9 12

13.  Focus on strategic plan  Emphasis on maintaining salary competitiveness  Enhance quality and reputation  Reduce cost of operation where possible  Inclusive budget process  Budget and Planning Committee  Various meetings 13

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15.  Operations & Maintenance:  Increasing utilities budget – Up $1,000,000  Software licensing & maintenance increases - Need $557,750  Other  Faculty Promotions - $86,460 (with benefits)  Strategic Initiatives Year 2 - $736,500 15

16.  May 2  Legislative update  Tuition Increase  May 30  June 20 16