Understanding UA Finances:
An Overview of the FY2002 – 2011 Data
Next Forum
Tuesday, May 1, 2012
2:30 – 4 p.m.
Simmons Hall
Welcome and Introduction
• Putting 10 years in Context
• Landscape for Living/Learning
• Ten Year Review
• FY 2013
• Vision 2020
2
Overview of Today’s Presentation
The data given in this presentation are intended
to provide a general overview of the university
budget.
The detailed analysis of our finances is an ongoing
process. Please view the following as part of a
work-in-progress.
3
10 Year History
• General Fund Revenues
• General Fund Expenses
• Auxiliaries
• Debt
4
UA General Fund Sources of Revenue
General Fund Revenues by Major Category
1. Tuition & Fees
2. Other Student Fees
3. State Appropriations
4. Gifts, Grants, Contracts, IDC
5. Inv Income and Other
6. Sales & Non-credit Tuition
Akron Total
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$101.6
$9.8
$93.4
$4.5
$2.9
$7.0
$219.2
$115.1
$14.8
$90.4
$4.3
$2.8
$8.5
$235.8
$127.0
$17.5
$91.4
$4.3
$1.9
$9.7
$251.6
$136.7
$18.3
$89.4
$4.2
$3.0
$9.6
$261.2
$144.1
$18.3
$87.9
$4.3
$5.0
$11.5
$271.2
$172.0
$18.8
$85.2
$4.1
$7.5
$11.3
$298.9
$182.3
$19.6
$90.3
$4.3
$6.5
$12.8
$315.8
$191.9
$20.7
$98.3
$4.3
$6.2
$12.9
$334.3
$209.7
$22.7
$103.8
$4.7
$4.2
$14.2
$359.2
$228.8
$24.3
$104.7
$4.9
$3.3
$15.4
$381.2
% Change
2002-11
125.2%
147.3%
12.1%
7.3%
14.3%
118.0%
73.9%
• Revenue has increased by 73.9%
• Approximately 93% of each year’s revenue is related
to enrollment (Items 1-3)
• Changes in student-related revenue are due to
increases in tuition and fees and increases in the
number of Student Credit Hours (SCH) generated
• State Appropriations per student, inflation-adjusted,
have declined 24% over this period
Source: Query of UA financial accounting system data.
5
UA General Fund Revenues
FY 2002
FY 2011
Dependence on Tuition and Fees has grown dramatically since FY 2002.
6
UA General Fund Expenses
Expenses (Main Campus) in $ Million and Expense/FTE in $
1. ACADEMIC Total
2. ACAD SUPPT Total
3. CONOB Total*
Total
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
% Change
2002-11
$109.9
$87.5
$22.0
$219.3
$115.1
$93.1
$26.6
$234.9
$113.1
$91.0
$46.7
$250.8
$116.2
$92.5
$52.3
$260.9
$122.9
$95.2
$52.2
$270.4
$125.8
$98.5
$72.8
$297.2
$137.0
$111.2
$66.6
$314.8
$146.1
$119.1
$68.9
$334.1
$150.7
$116.5
$90.8
$358.0
$157.3
$118.4
$104.2
$379.8
43.1%
35.3%
374.6%
73.2%
* Continuing Obligations
• Overall, expenses have grown by about 73.2%
• Academic Support expenses have increased at a lower rate
(35.3%) than have Academic expenses (43%)
• Continuing Obligations include transfers to Auxiliaries, and
have grown at the largest rate (374% over 10 years).
Source: Query of UA financial accounting system data.
7
UA General Fund Expenses
FY 2002
FY 2011
8
UA General Fund Expenses by Function
Expenses in Millions
% Change
Function
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2002-11
1000 Instruction & Dept Research
$ 90.1 $ 96.8 $ 95.0 $ 97.0 $ 101.6 $ 104.0 $ 112.8 $ 119.2 $ 123.7 $ 127.0
41.0%
2000 Separately Budgeted Research
4.9
4.5
4.5
5.2
5.4
5.4
6.2
7.7
9.1
10.9
120.1%
3000 Public Service
5.1
5.8
7.0
5.9
7.3
6.9
7.8
8.8
8.2
9.1
77.7%
4000 Academic Support
24.0
24.3
24.5
26.0
26.2
27.4
29.6
32.7
31.4
34.1
42.2%
5000 Student Services
8.5
9.3
8.8
8.7
9.2
9.1
10.2
10.5
10.7
11.0
28.7%
6000 Institutional Support
44.0
48.6
48.5
49.1
52.8
52.8
60.2
64.7
56.6
54.3
23.3%
7000 Oper & Maint of Plant
17.8
19.0
18.8
19.5
20.5
23.1
24.5
25.9
24.2
24.2
35.6%
8000 Scholarships & Fellowships
17.3
19.4
19.0
20.8
22.9
25.1
28.2
32.4
37.2
41.5
139.5%
TRNF
7.5
7.3
24.5
28.9
24.5
43.4
35.2
32.3
56.9
67.9
799.4%
Grand Total
$ 219.3 $ 234.9 $ 250.8 $ 260.9 $ 270.4 $ 297.2 $ 314.8 $ 334.1 $ 358.0 $ 379.8
73.2%
9
UA General Fund Expenses by Function
(Excludes Transfers)
FY 2002
FY 2011
10
UA Compensation Expenses
2002
2003
2004
Full Time Faculty
$ 48,528 $ 51,539 $ 50,443
Part Time Faculty
12,672
13,561
13,726
Contract Professionals
16,133
17,680
17,550
Staff
29,581
31,143
31,291
Graduate Assistants
7,753
8,395
8,530
Fringe Benefits
31,977
36,790
35,494
Subtotal Compensation $146,645 $159,107 $157,034
Expense Types in Thousands
2005
2006
2007
2008
2009
2010
2011
$ 50,840 $ 54,508 $ 56,765 $ 61,298 $ 64,284 $ 65,555 $ 67,147
14,089
13,617
13,045
13,653
14,819
15,353
16,475
18,224
19,636
19,951
21,625
24,294
25,165
25,544
31,862
33,128
33,891
36,929
37,801
37,763
38,247
8,893
8,623
8,666
8,899
9,782
10,116
10,845
38,689
40,383
42,138
44,030
49,356
49,632
49,431
$162,596 $169,895 $174,455 $186,433 $200,337 $203,584 $207,690
% Chng
38.4%
30.0%
58.3%
29.3%
39.9%
54.6%
41.6%
• Faculty’s share of total compensation has remained
roughly constant (40%)
• Expenses related to compensation have decreased
from 66.9% to 54.7% of total expenses
Source: Query of UA financial accounting system data.
11
UA Non-Compensation Expenses
Expense Types in Thousands
% Chng
2005
2006
2007
2008
2009
2010
2011
$ (31,868) $ (40,641) $ (45,282) $ (48,624) $ (53,899) $ (46,901) $ (63,439) 309.8%
2,593
2,832
3,181
3,604
4,025
4,008
3,935
34.7%
28,307
30,993
29,247
37,463
39,323
36,360
37,207
46.1%
7,726
9,098
11,182
11,916
12,367
10,717
11,267
58.5%
3,095
2,978
3,140
2,919
2,910
2,961
2,984 -18.2%
6,072
5,400
6,389
6,735
8,169
7,762
8,401
-5.5%
2,469
3,021
3,107
3,827
4,340
3,889
4,082
61.2%
20,391
22,323
24,518
27,490
31,859
36,125
40,828 138.1%
(1,226)
(685)
(1,316)
(1,037)
(1,741)
(4,800)
(4,502) 78.9%
10,725
12,315
12,099
10,864
12,225
12,325
7,403
56.9%
50,039
52,834
76,478
73,237
74,202
92,012 123,963 578.5%
2002
2003
2004
Non-Mand Trf-In
$ (15,480) $ (15,698) $ (16,280)
Student Assistants
2,920
2,664
2,603
Supplies & Services
25,472
26,247
27,946
Purchased Utilities
7,109
8,481
7,059
Communications
3,646
3,060
2,941
Movable Equipment
8,887
8,124
7,595
Travel & Hospitality
2,533
2,477
2,455
Student Aid
17,147
19,230
18,950
Other
(2,516)
(1,777)
30
Mand Trf-Out
4,718
6,948
9,752
Non-Mand Trf-Out
18,269
15,995
30,706
Subtotal NonCompensation $ 72,705 $ 75,750 $ 93,757 $ 98,323 $100,468 $122,743 $128,395 $133,778 $154,458 $172,129
136.8%
Total
73.2%
$219,350 $234,857 $250,791 $260,919 $270,363 $297,198 $314,828 $334,116 $358,043 $379,819
• Non-compensation expenses have increased from
33.1% to 45.3% of total expenses;
• The most significant increases - Transfers, Student
Aid - are budgeted in Continuing Obligations.
Source: Query of UA financial accounting system data.
12
Student FTE’s by College
Annual FTE
ARTS&SCI
7,489
7,748
7,490
7,253
7,155
7,818
8,344
8,717
9,258
BUSADMN
1,671
1,675
1,641
1,598
1,545
1,588
1,658
1,702
1,774
% Chng
9,566
27.7%
1,750
4.7%
2,114
2,127
2002
2003
2004
2005
2006
2007
2008
2009
CPA
EDUCATION
ENGINEERNG
FINE&APPL
HONORS
2010
2011
1,645
1,619
1,752
1,828
1,713
1,698
1,655
1,792
2,013
2,185
713
701
663
633
685
712
740
785
880
997
32.8%
39.8%
2,575
2,642
2,614
2,547
2,552
2,682
2,893
3,049
24
28
30
35
43
51
59
70
71
73
204.2%
1,009
1,155
HSHS
LAW
500
522
541
493
451
453
452
400
436
429
NURSING
378
415
506
533
603
617
631
678
721
690
SUMMIT
1,978
1,899
1,855
1,799
2,360
2,449
2,543
2,701
3,134
3,472
POLYMER
255
249
196
161
146
138
131
134
130
145
UNIVERSITY C.
665
682
731
747
129
121
121
115
129
146
17,893
18,180
18,019
17,627
17,382
18,327
19,227
20,143
21,669
22,735
TOTAL
-14.2%
82.5%
75.5%
-43.1%
-78.0%
27.1%
• At the University level, FTE’s have increased by 27%
• This 27% increase in FTE’s has been accompanied by an
almost 74% increase in revenue
13
Academic Unit Expenses
• Expenses in all Colleges have increased (not always
in proportion to enrollment changes)
• Different Colleges have different rates of change in
expenses with respect to changes in FTE
Expenses in $ Million
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ARTS&SCI
$29.7
$31.1
$30.3
$30.5
$32.2
$33.4
$36.0
$37.8
$37.9
$37.0
BUSADMN
$11.1
$11.1
$10.2
$10.3
$10.7
$10.4
$10.9
$11.3
$11.6
$11.8
$13.4
$14.1
CPA
EDUCATION
ENGINEERNG
FINE&APPL
$8.9
$9.6
$9.3
$9.7
$9.8
$10.0
$11.0
$12.3
$12.9
$13.8
$14.4
$16.0
$0.8
$0.8
$5.8
$6.0
$8.9
$9.3
$9.1
$9.9
$10.3
$9.9
$11.7
$13.3
$14.8
$15.4
$15.1
$15.5
$16.1
$16.7
$17.6
$18.7
$0.5
$0.6
$0.6
$0.7
$0.8
HONORS
HSHS
LAW
$6.0
$6.6
$6.7
$6.7
$7.2
$7.9
$8.7
$9.4
$9.7
$10.1
LIBRARY
$6.7
$6.9
$6.8
$7.2
$7.4
$7.7
$8.5
$8.3
$8.4
$8.8
NURSING
$5.0
$5.3
$5.5
$5.6
$6.3
$6.4
$7.1
$7.5
$7.6
$7.8
SUMMIT
$8.0
$8.4
$8.6
$10.4
$12.0
$12.4
$13.3
$14.2
$15.1
$16.1
POLYMER
$7.2
$7.6
$7.6
$7.2
$7.5
$7.5
$8.0
$8.8
$9.2
$11.0
UNIVERSITY C.
$3.4
Total
$109.9
$3.8
$3.9
$2.6
$2.7
$2.9
$3.4
$3.7
$3.8
$3.9
$115.1
$113.1
$116.2
$122.9
$125.8
$137.0
$146.1
$150.7
$157.3
Source: Query of UA financial accounting system data.
% Chng
24.5%
6.8%
55.7%
79.9%
66.7%
54.0%
100.6%
51.4%
14.6%
43.1%
14
Enrollment Trends 1989 - 2000
Fall Semesters
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
26,131
26,031
25,390
24,189
23,416
21,793
20,722
20,037
19,467
19,538
19,248
18,905
3,501
3,530
3,784
3,733
3,652
3,629
3,742
3,568
3,444
3,380
3,451
3,446
611
612
605
595
603
587
634
647
627
590
565
527
Total
30,243
30,173
29,779
28,517
27,671
26,009
25,098
24,252
23,538
23,508
23,264
22,878
Fall Semesters
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
216,242
216,813
214,026
28,124
27,756
26,944
26,982
7,573
7,002
6,736
6,269
313,394 312,162 299,294 287,949 274,402 259,942 249,287 239,510 249,492
251,000
250,493
247,277
Total UA Enrollment by Level
Undergraduate
Graduate
Professional
-24.4%
Total SCH BY Level
Undergraduate
Graduate
279,805 278,391 264,954 252,600 239,293 224,596 211,947 203,399 213,795
33,589
33,771
34,340
35,349
35,109
35,346
37,340
36,111
Professional
Total
Fall Semesters
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Total FTEs BY Level (Based on 15 credit hours)
Undergraduate
Graduate
18,654
18,559
17,664
16,840
15,953
14,973
14,130
13,560
14,253
14,416
14,454
14,268
2,239
2,251
2,289
2,357
2,341
2,356
2,489
2,407
1,875
1,850
1,796
1,799
505
467
449
418
16,633
16,733
16,700
16,485
Professional
Total
20,893
20,811
19,953
19,197
18,293
17,329
16,619
15,967
-21.1%
15
Enrollment Trends 2000 - 2011
Fall Semesters
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
18,905
19,973
20,117
19,699
19,206
18,723
19,672
20,668
21,635
23,277
24,601
25,190
3,446
3,545
3,577
3,805
3,454
3,379
3,328
3,494
3,810
4,103
4,140
3,961
Total UA Enrollment by Level
Undergraduate
Graduate
Professional
527
583
610
625
576
534
539
542
497
531
510
Total
22,878
24,101
24,304
24,129
23,236
22,636
23,539
24,704
25,942
27,911
29,251
29,699 29.8%
548
Fall Semesters
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
214,026
228,776
232,864
233,224
228,331
224,689
26,982
26,835
27,609
26,836
26,044
25,576
25,732
26,783
28,979
31,280
31,800
31,201
6,269
7,246
7,611
7,766
7,037
6,561
6,632
6,546
5,780
6,316
6,090
6,615
247,277
262,857
268,084
267,826
261,412
256,826
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total SCH BY Level
Undergraduate
Graduate
Professional
Total
Fall Semesters
238,193 254,007 266,112 288,527 305,237 310,475
270,557 287,336 300,871 326,123 343,127 348,291
Total FTEs BY Level (Based on 15 credit hours)
Undergraduate
Graduate
Professional
Total
14,268
15,252
15,524
15,548
15,222
14,979
15,880
16,934
17,741
19,235
20,349
20,698
1,799
1,789
1,841
1,789
1,736
1,705
1,715
1,786
1,932
2,085
2,120
2,080
418
483
507
518
469
437
442
436
385
421
406
441
16,485
17,524
17,872
17,855
17,427
17,122
18,037
19,156
20,058
21,742
22,875
23,219
40.8%
16
• 30-45 FT Faculty separate each year
• In the last 7 years there has been a net increase of 28 TT faculty
17
Academic Support (President & VP’s)
Expenses
EXPENSE in $ Million
Location
HR
PRESIDENT
PROVOST
STUDENT
VP INFO TECH/CIO
VP FIN & ADMIN/CFO
VP CP PLAN/FAC MGT
VP GENERAL COUNSEL
VP PUB AFF/DEV
VP RES/DEAN GRAD SCH
Total
2002
$
$
$
$
$
$
$
$
$
$
$
1.49
1.80
4.83
9.26
19.05
9.32
14.65
1.24
3.95
21.92
87.52
2003
$
$
$
$
$
$
$
$
$
$
$
1.76
1.51
4.32
9.94
19.93
10.55
15.16
1.23
4.31
24.37
93.08
2004
$
$
$
$
$
$
$
$
$
$
$
1.87
1.67
4.29
10.06
22.29
6.64
15.25
1.32
3.93
23.69
91.00
2005
$
$
$
$
$
$
$
$
$
$
$
1.97
4.04
9.74
20.28
10.26
16.10
1.24
4.22
24.64
92.48
2006
$
$
$
$
$
$
$
$
$
$
$
2.69
3.52
10.43
20.08
10.45
16.77
1.26
4.85
25.18
95.22
2007
$
$
$
$
$
$
$
$
$
$
$
2.30
3.35
10.36
21.39
10.83
17.73
1.27
4.87
26.43
98.53
2008
2009
2010
2011
$ $ 3.79
$ 4.06
$ 11.38
$ 22.09
$ 17.22
$ 19.18
$ 1.34
$ 4.29
$ 27.89
$ 111.23
$ $ 4.15
$ 5.36
$ 11.82
$ 23.17
$ 18.13
$ 20.26
$ 1.51
$ 5.11
$ 29.58
$ 119.09
$ $ 3.23
$ 6.90
$ 11.62
$ 20.18
$ 17.63
$ 20.20
$ 1.67
$ 4.74
$ 30.32
$ 116.49
$ $ 3.22
$ 7.26
$ 11.99
$ 19.26
$ 18.91
$ 20.43
$ 1.62
$ 4.70
$ 31.00
$ 118.38
% Chng
78.9%
50.4%
29.5%
1.1%
102.8%
39.4%
30.4%
18.9%
41.4%
35.3%
• The President’s Office growth in FY 2006 was to support
one-time marketing initiatives and special events. Growth
in FY 2008 was the result of the shifting of Marketing and
Communications from VP for Public Affairs and Development
• HR combined with CFO in FY 2005, growth from FY 2007 to
FY 2008 primarily in sales operations (Computer Solutions
from VP IT, $4.1M; opening of Quaker Square Inn, $0.8M)
• VP Research and Dean of Graduate School expenses are
primarily academic - represent GA stipends and remissions
18
Source: Query of UA financial accounting system data.
Continuing Obligations Expenses
CONOB by Type ($ millions)
1. Schol & Central Remissions
2. General Institutional
3. Utilities
4. Net Transfers
Grand Total
2002
$3.7
4.6
6.2
7.5
$22.0
2003
2004
2005
2006
2007
2008
2009
2010
2011 % Change
$4.3
8.3
6.9
7.3
$26.6
$6.4
9.4
6.4
24.5
$46.7
$10.1
6.7
6.5
28.9
$52.3
$11.4
9.0
7.4
24.5
$52.2
$12.7
7.7
9.0
43.4
$72.8
$13.8
7.9
9.6
35.2
$66.6
$18.1
8.7
9.9
32.3
$68.9
$19.1 $20.7
6.4
6.4
8.4
9.2
56.9
67.9
$90.8 $104.2
461.7%
41.0%
49.3%
799.4%
374.6%
• Continuing Obligations have grown at the largest rate of
any of the expense categories
• The largest expenses in this group over the last few years
are related to two sub-categories:
– Scholarships and tuition remissions (461%)
– Transfers (799%) -- Payments out of central funds to
meet/address commitments
Source: Query of UA financial accounting system data.
19
General Fund Transfers
Transfers by Type
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
($millions)
1. Tr-in
$ (15.4) $ (15.7) $ (15.9) $ (31.8) $ (40.6) $ (45.2) $ (48.3) $ (53.8) $ (46.8) $ (63.1)
2. Dept CO
13.5
10.9
19.9
30.9
36.1
46.3
49.8
46.1
63.0
68.0
3. Aux Support
3.8
6.0
10.0
11.2
11.5
25.9
27.8
29.4
30.7
35.3
4. Debt Service
4.4
4.7
7.1
10.7
11.1
9.4
5.5
8.4
6.7
7.3
5. Other
0.2
0.3
(0.3)
0.1
0.1
0.7
(0.7)
1.0
1.3
1.0
6. To Reserves
2.1
4.1
4.8
0.5
0.0
0.0
0.0
18.0
7. Plant Funds
1.0
1.0
1.7
3.8
1.4
5.7
1.1
1.2
2.0
1.4
Total Net Transfers $ 7.5 $ 7.3 $ 24.5 $ 28.9 $ 24.5 $ 43.4 $ 35.2 $ 32.3 $ 56.9 $ 67.9
• Transfers-in are funds added to the account (primarily
carryover balances)
• Departmental CO are the year end-balances that are
transferred into the subsequent fiscal year
• Auxiliary support growth in FY 2004 represents phase in
of facility fee for the Student Union and Rec & Wellness
Center; FY 2007 represents General Fee to Athletics
• FY 2011 transfers to reserves included initial funding of
Budget Stabilization Fund, reserve for group insurance
contingency and facility fee for the Student Union and
Wellness Center
Source: Query of UA financial accounting system data.
20
ERIP Recovery
• A 5-year plan is in place to recover $26.2
million expenditure for the Early Retirement
Incentive Plan.
– Academic Units will provide 25% of the total, 32% of
their available balances
– Academic Support Units will provide 45% of the total,
56% of their available balances
– CONOB will provide 30% of the total, 45% of the
available balance
21
Revenue and Transfers
(Adjusted for Consistent Reporting)
1. Tuition & Fees
2. Other Student Fees
3. State Appropriations
4. Gifts, Grants, Contracts, IDC
5. Inv Income and Other
6. Sales & Non-credit Tuition
Akron Total
2002
$ 108.9
9.8
93.4
4.5
2.9
7.0
$ 226.5
General Fund Revenues by Major Category, in Millions
2003
2004
2005
2006
2007
2008
2009
2010
$ 123.3 $ 136.6 $ 147.0 $ 155.3 $ 172.0 $ 182.3 $ 191.9 $ 209.7 $
14.8
17.5
18.3
18.3
18.8
19.6
20.7
22.7
90.4
91.4
89.4
87.9
85.2
90.3
98.3
103.8
4.3
4.3
4.2
4.3
4.1
4.3
4.3
4.7
2.8
1.9
3.0
5.0
7.5
6.5
6.2
4.2
8.5
9.7
9.6
11.5
11.3
12.8
12.9
14.2
$ 244.0 $ 261.2 $ 271.5 $ 282.4 $ 298.9 $ 315.8 $ 334.3 $ 359.2 $
2011
228.8
24.3
104.7
4.9
3.3
15.4
381.2
% Change
2002-11
110.1%
147.3%
12.1%
7.3%
14.3%
118.0%
68.3%
Transfers by Type
($millions)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1. Tr-in
$ (15.4) $ (15.7) $ (15.9) $ (31.8) $ (40.6) $ (45.2) $ (48.3) $ (53.8) $ (46.8) $ (63.1)
2. Dept CO
13.5
10.9
19.9
30.9
36.1
46.3
49.8
46.1
63.0
68.0
3. Aux Support 1
11.1
14.2
19.6
21.5
22.7
25.9
27.8
29.4
30.7
35.3
4. Debt Service
4.4
4.7
7.1
10.7
11.1
9.4
5.5
8.4
6.7
7.3
5. Other
0.2
0.3
(0.3)
0.1
0.1
0.7
(0.7)
1.0
1.3
1.0
6. To Reserves
2.1
4.1
4.8
0.5
0.0
0.0
0.0
18.0
7. Plant Funds
1.0
1.0
1.7
3.8
1.4
5.7
1.1
1.2
2.0
1.4
Total Net Transfers $ 14.8 $ 15.5 $ 34.1 $ 39.2 $ 35.7 $ 43.4 $ 35.2 $ 32.3 $ 56.9 $ 67.9
• Adjusting history for consistent reporting:
– General Fund Revenue grows 68% instead of 73%
– Auxiliary Support Transfers grow 217% instead of 821%
– Total Transfers grow 357% instead of 800%
22
General Fund Support of Auxiliaries
• Most of the General Fund support to Auxiliaries
is from designated student fees
Source: Query of UA financial accounting system data.
23
Unrestricted Auxiliary Expenses
EXPENSE in $ Millions
Location
Athletic Fac
Athletics
Dining Serv
EJ Thomas Hall
Parking Serv
2002
$
$
$
$
$
0.35
9.32
7.28
4.53
4.10
Student Rec & Wellness Ctr
Resident Life & Housing
Student Union
Telecommunications
Total
$ 6.63
$ 1.61
$ 2.84
$ 36.56
2003
2004
2005
2006
$ 0.54 $ 0.61 $ 0.96 $ 1.06
$ 10.47 $ 11.98 $ 13.10 $ 14.54
$ 7.53 $ 8.09 $ 9.05 $ 9.27
$ 4.67 $ 4.78 $ 4.66 $ 3.94
$ 4.30 $ 5.60 $ 5.02 $ 5.09
$ 1.87 $ 3.64 $ 3.07
$ 7.12 $ 8.60 $ 11.69 $ 12.08
$ 2.02 $ 2.22 $ 2.85 $ 2.99
$ 3.26 $ 3.31 $ 2.70 $ 3.34
$ 39.91 $ 47.07 $ 53.66 $ 55.36
2007
$
$
$
$
$
$
$
$
$
$
1.33
16.07
12.32
3.72
5.48
2.94
11.79
3.36
2.81
59.80
2008
$
$
$
$
$
$
$
$
$
$
1.74
17.35
13.73
3.02
6.36
2.77
15.78
3.18
3.27
67.19
2009
$
$
$
$
$
$
$
$
$
$
1.36
18.77
14.13
3.22
6.92
3.02
17.59
3.14
4.37
72.52
2010
$
$
$
$
$
$
$
$
$
$
3.82
22.99
15.17
2.98
7.15
3.10
16.63
3.10
4.70
79.64
2011
$
$
$
$
$
$
$
$
$
$
5.36
23.92
16.72
3.04
10.82
4.87
20.31
6.32
3.69
95.05
% Chng
1431.4%
156.7%
129.7%
-32.9%
163.9%
160.4%
206.3%
292.5%
29.9%
160.0%
• Auxiliary services contribute directly to the quality
of student life
• The net fiscal impact of these items can be less
than they appear. For example, consider the
Athletics expenses in 2011:
• $6.5 million of the expenses were scholarships
• $1.1 million was on-campus spending (physical
facilities, dining services, computer solutions,
telecom, etc.)
Source: Query of UA financial accounting system data.
24
Investment in the Campus
2002
2003
Academic
$ 1.1 $ 1.2
Academic Support
1.8
2.0
Auxiliary
7.5
8.3
Athletics
Total
$ 10.4 $ 11.5
Annual Debt Service in Millions
2004
2005
2006
2007
2008
2009
2010
2011
$ 1.3 $ 1.3 $ 1.3 $ 1.6 $ 1.1 $ 1.3 $ 1.2 $ 1.4
2.4
2.3
2.1
2.7
3.4
4.1
3.8
4.5
9.5
9.1
10.4
13.4
15.0
18.1
16.8
19.9
1.0
0.9
0.9
1.1
4.3
5.2
4.8
5.7
$ 14.2 $ 13.7 $ 14.6 $ 18.8 $ 23.8 $ 28.6 $ 26.6 $ 31.5
2002
2003
$ 24.0 $ 14.0
15.0
13.0
22.0
42.0
$ 61.0 $ 69.0
Plant Fund Expenditures in Millions
2004
2005
2006
2007
2008
2009
2010
2011
Total
$ 13.0 $ 5.0 $ 16.0 $ 19.0 $ 14.0 $ 23.0 $ 24.0 $ 12.0 $ 164.0
25.0
12.0
7.0
8.0
16.0
10.0
10.0
10.0
126.0
33.0
9.0
9.0
29.0
44.0
56.0
56.0
12.0
312.0
$ 71.0 $ 26.0 $ 32.0 $ 56.0 $ 74.0 $ 89.0 $ 90.0 $ 34.0 $ 602.0
Academic
Academic Support
Auxiliaries
Total
• Roughly 80% of the University’s debt service is
attributed to auxiliary functions – mainly
residence halls, the Student Union and
recreation center, and parking – and is backed
by designated fees.
25
Preparing for FY 2013
• Our Budgetary Reality
• Where do we go from here?
26
Facing a Few Budget Realities
• The enrollment projections for FY 2012 did not
materialize;
– Growth was 0.4% compared to projected 3.5%
• The proportion of costs covered by SSI is
decreasing;
– SSI reduced $14 million (13%) in FY 2012 alone
– SSI/FTE has fallen 24% in real terms in the past 10
years
• We are looking at pathways for student success,
some of which may have some (at least shortterm) financial impacts
27
Proposed Revenue Assumptions
FY12 – FY13
• Adjustments to the Base:
– Flat enrollment – FY 2011 to FY 2012 and into
FY 2013
– Absorb remainder of FY 2012 reduction in state
funding – eliminate $8.4 million from FY 2011
under-spending
• Request Increase in Tuition & Fees of 3.5%
– Within existing fee cap language
– Consistent with anticipated increases at other
Ohio universities
28
Proposed Major Expenditure
Assumptions FY 2012 – FY 2013
• Assume Compensation Increases per Collective
Bargaining Agreements and others comparable
to FY 2012
• Assume Increases in Scholarships of $3.5 million
• Strategic Investments of at least $2 million
• Identify reallocations consistent with strategic
priorities
29
FY 2013 Budget Development
Process
• Fiscal Analysis to Determine Starting Balance
• Instructions to Academic and Support Units
– Requested explanations of the impact of 3% and 6%
reduction scenarios
– Requested revenue enhancement ideas
• Review Submissions
– University Council Budget & Finance Committee
– Council of Deans
– Vice Presidents
• Board Action on Tuition and Fees May 2
– Briefing on budget development April 30
• Board Approval of Budget June 13
30
Where do we go from here?
• We need to plan (and act) strategically for
FY 2013 and beyond.
• Program Review was done without taking into
account financial issues. In addition to the
formative reviews already completed, a
summative review needs to be done.
• Spending levels need to be assessed in context
of the mission of each unit.
• Internal reallocation is critical, and the 3% and
6% planning scenarios will serve as a
foundation for these discussions.
– Reallocation is necessary to address cost pressures
and flat revenue; nonetheless, many unit budgets may
increase.
31
Pathways to Success will Achieve Vision,
Mission, and Aspirational Goals
The University of Akron Vision
…to set a new standard for public research universities in
adding economic value and enriching lives.
The University of Akron Mission
…to ensure student success and leverage our region’s unique
assets in the creation of knowledge and application of research
that benefits humankind.
Aspirational Goals
40,000 student learners; increased diversity as part of inclusive
excellence; 60% graduation rate; 80% placement rate; $200M
research expenditures; $1B development portfolio; recognition
for distinction: The Akron Experience & The Akron Model;
revitalized campus neighborhood; diversified revenue to
support growth.
Pathways to Success
 The Akron Experience:
Academic & Inclusive
Excellence
 Global Relevance
 Interdisciplinary Clusters of
Entrepreneurial Innovation
 Connectivity for Economic
Vitality
 Community and Campus
Enhancement &
Engagement
 Diversified Revenue to
Support Growth
32
Vision 2020 Implementation
Ensuring Academic Excellence
(Capacity/Excellence Assurance)
 Academic program review
 Reallocation within/across units
 18 month timeframe
Achieving Academic Distinction
(Strategic Investment)
 Interdisciplinary innovation
 Budget process allocation
 10 year timeframe
Achieve
Aspirational
Goals and
Student
Academic
Success
33
Achieving Academic Distinction
Through Strategic Investment
Connectivity for Economic Vitality
Human Condition
-Societal Issues
-Arts and Culture
Regional Solutions
–Urban Issues
-Education
Partners: UPA, APS, SEI
Educated Workforce
+
Innovation =
Economic Development
Health Care &
Medicine
-Community
Health/Accountable Care
-Clinical Research/
Simulation
Partners: UPA, APS,
Akron Art Museum,
Social Agencies
Innovative
Technologies
-Advanced Materials &
Devices
-Advanced Energy
Partners: ABIA, Industry
Partners: ABIA
34
Questions?
35
Revenues by Source – FY 2010
(per FTE)
• UA ($17,528) vs. Other Ohio Schools ($20,726)
45%
43%
23%
22%
14%
16%
7%
4%
2%
4%
9%
12%
IPEDS Data excludes OSU, Central State and SSU
36
Expenses by Function – FY 2010
(per FTE)
• UA ($15,520) vs. Other Ohio Schools ($16,929)
45%
49%
8%
7%
6%
5%
11%
12%
16%
12%
4%
6%
10%
9%
37
IPEDS Data excludes OSU, Central State and SSU