Financial Update And Budget meeting February 6, 2014

FINANCIAL UPDATEAND BUDGET MEETING

FEBRUARY 6, 2014

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The Path Forward

• Stay focused on our mission and execute on our

strategy

• Leads to bigger, stronger, more engaged university

• Growing and acquiring the physical assets to support

growth

• Profile and reputation improving

• Significant growth in philanthropy

• UM System support for strategy – facilities based upon

pro forma

• Challenged to get back on track to financial

strength

Days Operating Expense by Campus(Recommended is 65-130 days)

Campus 2011 2012 2013

Columbia 110 115 118

Missouri S&T

108 116 123

St. Louis 98 96 84

Kansas City 43 43 36

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Operating ReservesFY2008 to FY2014

FY08 FY09 FY10 FY11 FY12 FY13 FY14 $0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

BudgetActual/ProjectedProforma

FY14 Budget projected as of 10/31/13 .

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Operating Fund RevenuesFY2008 to FY2014B

FY08 FY09 FY10 FY11 FY12 FY13 FY14 Bud

0

20

40

60

80

100

120

140

160

180

120.9128.5 133.7 141.1 147.4 152.9 157.8

92.7 98.8 103.7113.3 119.1 124.5 127.4

80.6 8495.4

79.5 75.4 75.1 75.1

34.8 33.4 35.6 37 38 38.7 40.5

Gross student feesNet student feesState AppropriationsOther revenues

FY2014 Budget projected as of 10/31/13.

Net Revenues and ExpensesOperating Fund

(in millions)

FY08 FY09 FY10 FY11 FY12 FY13 FY14 Bud

$180

$190

$200$210

$220$230

$240

$250$260

208.1

216.2

234.7229.8

232.5238.3

243

210.3

219.9216.8

228.6232.1

242.3

249.1

Net RevenuesExpenses

FY14 Budget projected as of 10/31/13 .

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Summary – FY 2014First submission ($18.1 M)

After first request ($16.3 M)

Response to targets (Ask $?) ($8.8 M)

After additional challenge ($6.1 M)

Desired outcome FY 2014 Improve ‘13 ($4.1)

Target FY 2015 > Breakeven

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FY 2014 Next StepsExpense Control• Hiring Plans• Soft Freeze• Hiring Committee• Monitor Unit Accountability Plans• Consultant for Shared Services

Revenue• Enrollment projections• Marketing, Recruiting, etc.

Other• Unit Pro Forma Development• Budget Model Revision

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The Hiring Committee Considerations

• Consistent with mission/strategy/accreditation/etc.• Consistent with hiring plans• Included in Budget• Compliance with 2014 budget target• Reserve status • Potential to improve compliance with CRR

Compliance with minimum faculty load

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CRR 310.080 Regular Faculty Workload Policy “No regular faculty member can be assigned either fewer than 12 section credits or fewer than 180 student credit hours per academic year without an instructional waiver requested by the Department Chair and issued by the Dean …”

At $270 per UG-SCH, 180 SCH = $48,600 per year• How does this compare to average compensation?• Should tuition cover other costs?• What level of compliance do we have with these minimum standards?• What would be the value of increased compliance?• What would be the downside to compliance?• How much of our current challenge could be met with improvement?

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BACK UP SLIDES

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Enrollment GrowthFS08 to FS13

FY08 FY09 FY10 FY11 FY12 FY130

1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Dual High SchoolUndergraduateGraduateProfessional

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Salaries and WagesAll Funds(in millions)

FY10 FY11 FY12 FY13 FY14 Budget (Units) $-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

$98.5 $102.0 $105.9 $105.3

$37.0 $37.8 $38.2 $40.5

$28.4 $28.2 $29.2 $30.4

$163.9 $168.0

$173.3 $176.2

186.5

Academic

Academic admin-istrative

Administrative (non-academic)

Total

Change in Net Assets (Operating Fund)Academic Units FY11 FY12 FY13

Arts and Sciences (2,019,225) (3,235,929) (1,184,078)Biological Sciences (709,452) (864,843) 202,310

Bloch School (931,556) (1,628,552) (1,721,053)Conservatory (291,409) (119,484) (450,736)Dentistry 576,219 (219,836) 453,360Education 409,524 (254,289) (864,699)Computing/Engineering

(473,286) (949,042) (1,443,851)

Law 338,534 (50,885) (285,716)Nursing (1,642,125) (431,613) (460,832)Medicine 1,762,902 482,602 2,364,498Pharmacy 950,345 2,640,055 (332,440)Graduate Studies 21,533 9,208 246,118

Change in Net Assets (Operating Fund)

Other Academic FY11 FY12 FY13University College

0 8,595 121,247

KC Rep 61,050 10,078 70,300

Academic Affairs

1,324,101 (78,634) (562,396)

Information Services

(262,140) (590,185) (2,677)

Research 1,742,092 (950,795) (266,819)

Libraries 30,564 10,846 192,044

Change in Net Assets (Operating Fund)

Non-academic FY11 FY12 FY13Chancellor (12,438) (244,403) 242,710MCOM (68,817) (99,454) (69,984)Advancement 148,049 51,920 (265,156)Administration/Finance

(2,634,594) 2,624,391 (2,125,877)

Diversity (299,038) (400,054) (313,081)Human Resources

86,524 17,655 56,039

Scholarships/waivers

2,618,146 4,207,526 2,234,278

Student Affairs (288,304) 868,239 (975,410)Campus wide/adj.

819,139 (402,399) 1,130,368

Operating Margin by Campus

Campus 2011 2012 2013

Columbia 9% 6% 6%

Missouri S&T

8% 6% 5%

St. Louis 12% 4% 4%

Kansas City 1% 1% 0%

Net Operating Sources (Uses) by Campus(in millions)

Campus 2011 2012 2013

Columbia 52.6 33.4 38.2

Missouri S&T

10.0 7.4 6.3

St. Louis 18.4 6.2 5.3

Kansas City 2.5 3.0 (.3)

Change in Net Assets by Campus(in millions)

Campus 2011 2012 2013

Columbia 43.0 24.5 24.3

Missouri S&T

7.1 7.1 3.5

St. Louis 11.1 2.9 (4.9)

Kansas City 1.3 0.4 (4.0)

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FY 2014 Next StepsExpense Control• Hiring Plans• Soft Freeze• Hiring Committee• Monitor Unit Accountability Plans• Consultant for Shared Services

Revenue• Enrollment projections• Marketing, Recruiting, etc.

Other• Unit Pro Forma Development• Budget Model Revision