Planning and Budget Committee

March 28, 2014

1

Agenda

Operating Budget Status

Financial OutlookContinuing Challenges

2

Budget StatusFY14 Total Budget - $89.M

3

Operating Expenses - $67.7 M

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

Current Financial Position

           

  Auburn University at Montgomery Financial Position  

 

For Period Ending February 2014 and Projections through September 2014  

   

   Budget 2013-

14 Year-to-DateProjected 2013-

14  

           

  TOTAL REVENUES$67,701,906.0

0 $34,124,999.53 $70,143,054.00  

  TOTAL PERSONNEL COSTS 48,796,741.00 21,165,545.13 49,724,709.00  

 

TOTAL OPERATING EXPENDITURES 19,399,072.00 9,974,435.62 20,624,075.32  

 

TOTAL OPERATING TRANSFERS 493,907.00 334,642.34 493,907.00  

 

Excess Revenues Over Expenditures $0.00 $3,319,661.12 $288,176.68  

            5

Agenda

Operating Budget StatusFinancial OutlookStrategies

6

ContinuingAnnual Budget Commitments

StateAppropriations

32.6%

Tuition52.9%

Other12.3%

Reserves2.2%

Continuing Sources of Funding

One-TimeSource of Funding

Operating Revenues

Endowment, Investment, Indirect Cost, etc.

7

State Appropriations Amounts in Millions

  FY08 FY09 FY10 FY11

  Actual ActualProrat

ed ActualAUM $30.2 $27.1 $24.0 $22.1

  FY12 FY13 FY14Decreas

e

  Actual Actual ActualSince FY08

AUM $22.9 $21.9 $22.5 $7.7

8

Outlook State AppropriationsPotential growth in the Education Trust Fund will not translate to timely increases in state appropriations due to: Rolling Reserve ActPEEHIP pressuresK-12 funding

9

Outlook – Other Revenues

Tuition Affordability issues & Federal/public

scrutiny Net tuition

Investment returns – very limited

Gifts – typically restrictedCompetition for grants and contracts and limits on full recovery of costs

10

Outlook – Cost Pressures

Benefit cost increases – TRS, health insurance

Funding for strategic initiatives for year 2

Salary and wage improvement

11

Agenda

Operating Budget StatusFinancial OutlookStrategies

9 12

Continuing Budget StrategyFocus on strategic planEmphasis on maintaining salary competitiveness

Enhance quality and reputation

Reduce cost of operation where possible

Inclusive budget process Budget and Planning Committee Various meetings

13

AUM Budget Timeline

14

June 27Board of Trustees  Sept 5reviews guidelines Board of Trustees 

approves Budget

March April May June July Sept Oct

May 31 Unit Oct 1Freeze Date  Budget Final Fiscal Year Employment  Recommendations begins& Salary

Auburn University at Montgomery2014-15 Budget Timeline

Budget and Planning Committee Meets

July 11

 to Senior Staff

Aug

Prep

FY 14 – 15 Needs

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

Future Meetings

May 2 Legislative update Tuition Increase

May 30June 20

16