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The Florida International University BOARD OF TRUSTEES

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Title: The Florida International University BOARD OF TRUSTEES


1
The Florida International University BOARD OF
TRUSTEES MEETING Operating Budget FY05-06 June
29, 2005
2
The Florida International University Board of
TrusteesFINANCE AND AUDIT COMMITTEE
AGENDA
  • University wide 2005-06 Budget Summary by fund
  • Delineate E G budget
  • Review revenue drivers, specifically tuition
    increase resolution
  • Present waiver strategy and corresponding policy
  • Detail expense increases
  • Highlight most significant changes per Fund
  • Overview of Local Funds and FIU Foundation
  • Present proposal to increase Student Activities
    fees
  • Review Resolutions

3
UNIVERSITY WIDE BUDGET SUMMARY
4
UNIVERSITY WIDE BUDGET SUMMARY
5
E G INCREMENTAL REVENUE
6
E G INCREMENTAL REVENUE
22,625
Note Fiscal Years 03-04, 04-05 and State Target
05-06 represent Fundable FTEs only while Budgeted
05-06 Total FTE are 23,046, of which 22,625 are
Fundable FTEs
7
E G INCREMENTAL REVENUE Undergraduate tuition
increase proposal 5 for Resident

8
E G INCREMENTAL REVENUE Graduate tuition
increase proposal 5 resident

9
E G INCREMENTAL REVENUE Waiver strategy and
proposed policy
Used to recruit in a highly competitive market
Policy seeks to ensure consistent application of
waiver distribution
Projected Budget 04-05 05-06 103.1 111.3 7.1
9.0 1.3 1.3 3.2 3.3 0.6 0.6
12.2 14.2 1.3 1.4 88.5 95.7
  • Undergraduate
  • Test results and grade point average
  • Minimum enrollment credits
  • First time in college students
  • Graduate
  • To be established by the Provost

Gross Tuition Fee Waivers Under/Grad LACC Sp
onsored Credit Other Incid. Total
Waivers Exemptions Net Tuition Fee
Projected 04-05 waivers based on a report from
the student financial system on April 21,
2005. Budgeted waivers are established as a
percent of gross tuition.
10
E G EXPENDITURES
11
E G EXPENDITURES Personnel growth tied to
salary increases
  • Permanent Salary expenditures will increase due
    to the full year incremental impact of the 4
    salary increases awarded in 04-05 of 3.2M
  • The State salary increases of 3.6 across the
    board account for approximately 5.1M
  • Assumes no other salary increases in 2005-06
  • OPS expenses decreasing 1.6M from 2004-05 to
    2005-06 due to
  • 1M PeopleSoft consultants charged to OPS in
    2004-05, offset next year by new consulting
    contracts charged to Expense
  • Savings of 0.5M from BBC Shuttle service being
    absorbed by auxiliary operations
  • OPS employees increased by 221 primarily due to
    higher Graduate Student Assistants offset by
    lower Faculty Adjuncts

Permanent Salaries

OPS Payroll
12
E G EXPENDITURES

13
E G EXPENDITURES
  • Law 1.3M
  • Business Expansion Accreditation 1.3M
  • Research Start-Up Investments 1.6M
  • Public Health .500M
  • Merit-based Scholarships 3.8M


14
E G EXPENDITURES
  • Utilities 2M
  • Maintenance Contracts .6M

15
E G EXPENDITURES

PeopleSoft Human Resources 1.65M, net
PeopleSoft increase is 0
16
E G EXPENDITURES

All other Executive Areas remain flat to prior
year, includes Directors Policy
17
UNIVERSITY WIDE BUDGET SUMMARY
18
AUXILIARY REVENUES Budgeted increase of 9.5
exceeding 82 million
Budget FY05-06 Incremental Revenue
Projected FY04-05 Revenue
19
AUXILIARY ENTERPRISES INVESTMENTS Continue
providing a source for critical expansions
  • Net income increases to 4.3M from a 2.06M loss
    the previous year, driven by favorable operating
    income of 5.5M and lower transfers
  • Although net transfers are lower, infrastructure
    investments and loan repayments planned totaling
    8M
  • Student related investments Graham Center
    Expansion BBC, Cafeteria Expansion, Recreational
    Field Construction

Operating Investments FY 2005-06
Future Investment Commitments
  • 15.7M held as reserves for already committed
    future investment projects
  • New Parking Garage, Lakeview Housing, IT Network
    refresh
  • Plans under development to invest remaining net
    income while some cash held to meet working
    capital needs
  • Lease agreement necessary to control capital
    expenditures in Telecom Operations by 1.8M
  • New bond issue to cover 5.5M increase in
    construction costs for Lakeview Housing from
    escalating cement and other material costs

Investment Assumptions
20
UNIVERSITY WIDE BUDGET SUMMARY
21
SPONSORED RESEARCH PERFORMANCE HIGHLIGHTS
  • Forecasted to increase by 10.4M based on new
    multi-year grant proposals growing from 63.4M to
    73.8M
  • The majority of new proposals are sponsored by
    the Federal Government allowing higher indirect
    cost recovery
  • FY 05-06 will generate positive operating income
    mainly due to a change in strategy that
    significantly reduces cost sharing and increases
    cost recovery
  • Despite financial improvement, funds might not be
    available to support new startup equipment
    expenditures
  • Billing in 04-05 was slower due to PeopleSoft
    conversion and staff restructuring in Office of
    Sponsored Research Administration post-award
  • For 05-06, a new billing process will improve
    liquidity and generate a 2M one time revenue
    gain

Projected Financial Improvement
Working Capital
22
UNIVERSITY WIDE BUDGET SUMMARY
23
FINANCIAL AID SCHOLARSHIPS PERFORMANCE HIGHLIGHTS
Need Based Activity
  • Need-based financial aid scholarships are
    estimated to increase from 38.4M in FY 04-05 to
    38.9M in FY 05-06
  • Mainly comprised of Pell Grants and Florida
    Student Assistant Grants
  • Based on a strategic decision to attract high
    achieving students, the University committed
    26.9M receiving 23M from merit based funding
    sources and 3.9M funding from EG
  • Non-Need based (merit) financial aid consists of
    Bright Futures, Private and FIU funded
    scholarships
  • Loan fund activity increasing from 62.1M in
    FY04-05 to 70.1M in FY05-06 is due to
  • Tuition increases from core coursework, tuition
    plus programs

Merit Based Activity
Loans
24
FINANCIAL AID FUNDING TREND
3.9M merit scholarships funded by EG
25
UNIVERSITY WIDE BUDGET SUMMARY
26
OTHER LOCAL FUND PERFORMANCE HIGHLIGHTS
  • A 15 or 1.38 fee increase to 10.52 from 9.14
    per student credit hour is proposed for 05-06 to
    fund the student recreation center
  • Forecasted incremental revenue is 1.45M (1.15M
    due to fee increase and .3M due to additional
    credit hours) while higher expenses to manage the
    student center held in auxiliaries
  • Incremental fee approved by the University Fee
    Committee consisting of four staff members and
    four student representatives
  • Athletics Revenues are increasing to 13.4M, a
    0.9M increase
  • 10.8M or 80 of athletics come from student
    fees, increasing 0.9M due to higher FTE students
  • Remaining funding stays flat .3M ticket sales,
    1M in game guarantees, .8M foundation, .2M
    sponsorships and .3M other
  • The following re-alignments impacted year over
    year expenditures

Activities Services
Intercollegiate Athletics
27
FIU FOUNDATION, INC. Approved by FIU Foundation
Board May 2005
  • Income decrease of 3.3M from the previous year
    is a result of
  • Decrease in State matching endowments of 3.9M,
    since State fully matched all of pending requests
    in FY04-05
  • A decrease in budgeted endowment revenues of
    1.3M
  • Projected increase of investment earnings of
    1.5M from a higher investment pool

Revenues FY 2005-06
  • Increase in expenses of 4.4M from previous year
    is a result of
  • The donated amounts received in FY04-05 of 3.2M
    will be remitted (expended) to the University in
    FY05-06 to be used on donor approved projects
  • Higher investment earnings from endowments
    amounting to 1.2M are distributed to
    corresponding University accounts

Expenditures FY 2005/06
28
FIU FOUNDATION, INC. Approved by FIU Foundation
Board May 2005
29
UNIVERSITY WIDE REVENUE EXPENDITURE SUMMARY
30
RESOLUTION SUMMARY
  • Increase in Resident Tuition at all levels 5
    (Undergraduate, Graduate Law)
  • New Architecture Resident Graduate Students 15
    increase (additional 28.79/cr hr)
  • No increase in Non Resident Fees
  • Flexibility to lower fees for Non-Resident
    students existing and new
  • Delegate to President authority to approve any
    subsequent amendments subject to following Rule
    process

Tuition Rule
Waiver Policy
  • Specific Undergraduate student criteria
  • Delegate authority to Provost to establish
    criteria for Graduate students

AS Fees
  • Increase of 1.38/cr hr. from 9.14 to 10.52
  • Higher fee to fund Recreational Sports Centers at
    University Park Biscayne Bay Campus
  • Operating Revenues and Expenditures for EG,
    Auxiliaries, Sponsored Research, Local Agencies
    and FIU Foundation
  • Capital Improvement Plan 2006-07

2005-06 Operating Budget
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