Faculty Senate

1
American University Vice President of Finance and
Treasurer
Faculty Senate
Updated May 7, 2008
2
American University
Section 1
Financial Management
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American University
Financial Management
University Budget Process

• A direct link between university goals and
  annual and long-term resource allocations
• Two-year budget process implemented since
  FY2004-5 as part of the 15-Point Strategic
  Plan
• FY2008-9 will be the third two-year budget cycle
  
• Open and collaborative budget process involving
  campus constituencies
• Presidents Cabinet
• University Budget Committee
• Faculty Senate Instructional Budget and
  Benefits Committee
• Enrollment planning by the deans and the
  Office of Enrollment
• Town hall meetings
• Staff Council

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American University
Financial Management
University Budget Process

• Board of Trustees approvals
• Budget formulation guidelines in November
• A formal two-year budget proposal in February
• Periodic budget status reports to the BOT
  Finance and Investment Committee and the full
  Board

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American University
Financial Management
FY2009 Revenue Budget
FY2009 Revenue Budget 427.7
(in millions)
Student Fee Dependency FY 2009 94 FY 1984
95
346
347
325
311
32
26
11.7
12
12
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American University
Financial Management
FY2009 Expenditure Budget
FY2009 Expenditure Budget 427.7
(in millions)
78
Financial Aid of Budget FY 2009 18 FY
1984 11.3
74
120
6.5
7.4
188
10
16.8
195
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Financial Management
Financial Safeguards
FY2008 FY2009 Enrollment Contingency (1.5
of tuition) 4.9 M 5.2 M Transfer to Quasi
Endowment (2 of budget) 4.0 M (1) 8.5
M Pre-fund Salary Increases 3.8 M 3.9
M Deferred Maintenance (incl. residence halls)
8.7 M 9.1 M New Budget Initiatives
since 2002 PC Replacement Fund 1.0 M 1.0
M Furnishings/Capital Equipment Renewal Fund
1.8 M 2.1 M Facilities Modernization Fund
1.8 M 2.1 M Total 26.0 M 31.9
M Percent of Operating Budget 6.5 7.5

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Financial Management
American University
Revenues and Expenditures (in millions)
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Financial Management
American University
Endowment Funds
Fiscal Year
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Financial Management
American University
Endowment Performance
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American University
Financial Management
Asset Allocation

• Alternative assets are comprised of half hedge
  funds and half energy related funds

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Financial Management
American University
Debt Portfolio - As of April 30, 2007
Core Debt Amount Series 1985 48,900,000 Tenl
ey Campus, Sports Center, Refinancing Series
A 12,000,000 Centennial Hall Series
1996 0 Residence Halls Renovations, Ward
Circle, (Refinanced with Series 2006
Issue) Myers-Hutchins, Battelle-Tompkins Series
1999 21,000,000 WCL Purchase
Renovation Series 2003 37,000,000 Greenberg
Theatre Katzen Arts Center Series 2006
99,975,000 SIS (partial), Nebraska Hall,
Series 1996 refinance Special Purpose
Debt SunTrust Loan 15,000,000 4200 Wisconsin
Ave. SunTrust Loan 22,000,000 3201 New
Mexico Ave. Total 255,875,000
Net debt service increase 1.9
million
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Financial Management
American University
Peer Comparison
SP upgraded AUs rating outlook from stable to
positive and affirmed its A rating on February
8, 2008.
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American University
Section 2
Capital Projects and Facilities Management
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Facilities Management
American University
2000 Campus Plan
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Facilities Management
American University
History of Growth in Facilities
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Facilities Management
American University
Condition of Facilities
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Facilities Management
American University
Improvement Projects

• Kogod School of Business Expansion
• Classrooms
• Computer lab
• Student Service offices
• Spring 2009

• School of International Service New Building
• Classrooms
• Faculty/staff offices
• Meeting/function space
• Underground parking
• Spring 2010

• McKinley Renovation School of Communication
• Classrooms
• Faculty/staff offices
• Theater
• Converged Newsroom
• Timetable under discussion