Staff Senate BUDGET PRESENTATION 12-9-19

University of Louisville CombinedFY 2019 Financial Results VP for Finance/CFO... Highlights of Financial Results for FY 2019 • University ended the year consistent with plan and an unqu

University of Louisville (Combined)

FY 2019 Financial Results

VP for Finance/CFO

Highlights of Financial Results for FY 2019

• University ended the year consistent with plan and an unqualified “clean” audit

• Total revenues increased by 5% from prior year to $1.099 billion

• Total expenses increased by 3% from prior year to $1.076 billion

• Net position (our financial value) increased by $23 million in FY19 - significant increase

over the prior year performance of $3 million

• Increased Net Position was spread over Capital, Restricted, and Unrestricted asset

categories

• The University’s financial position remains strong as of June 30, 2019 with total assets

and deferred outflows of $1.3 billion

• Liquidity position is improving:

• Unrestricted cash position improved significantly

• Current ratio increased to 1.32x from 1.11x

Summary of Revenues, Expenses and Changes in Net Position

Year Ended June 30, 2019 and 2018

REVENUES

223,173

61,324 67,608 (6,284) (9.3%)

EXPENSES

Interest on capital asset-related debt 10,457 10,789 (332) (3.1%)

Student tuition and fees, net

Affiliate contributions, net

Statement of Net Position (Balance Sheet)

June 30, 2019 and 2018

• Overall increase in our Net Position of

$23 mil

• $15 mil increase in the value of Capital Assets

• $3 mil increase in our Restricted Assets

• $5 mil increase in our general operations (liquidity plan)

6/30/19 6/30/18 $ Diff % Diff TOTAL ASSETS

Unrestricted cash and cash equivalents $ 110,451 $ 80,839 $ 29,612 36.6%

Restricted cash and cash equivalents 2,152 35,816 $ (33,664) (94.0%)

Investments held with ULF 11,236 13,884 (2,648) (19.1%)

DEFERRED OUTFLOWS OF RESOURCES $ 8,080 $ 9,680 $ (1,600) -16.5%

TOTAL LIABILITIES

Accounts payable and accrued liabilities $ 103,575 $ 102,439 $ 1,136 1.1%

DEFERRED INFLOWS OF RESOURCES $ 82,129 $ 61,275 $ 20,854 34.0%

NET POSITION

Restricted - nonexpendable 4,710 1,633 3,077 188.4%

Unrestricted Net Position excluding GASB 75 & OPEB 24,481 18,026 6,455 35.8%

The Depth of Our Resources at June 30, 2019

Cumulative Total

Cumulative

Cumulative Total

Cumulative Days Amount

Cumulative Total

Cumulative Days

• University Based Liquidity

□ Liquid Cash $77.9 $77.9 28.7 $100.1 $100.1 38.0 $125.0 $125.0 46.7

□ ULAA Short-Term Investments $25.3 $103.2 38.0 $13.9 $114.0 43.2 $11.2 $136.2 50.9

□ General Line of Credit $50.0 $164.0 62.2 $50.0 $186.2 69.6

• UofL Liquidity Held by Foundation

□ Designated/Unrestricted Gift

Account Cash Available $46.1 $149.4 55.0 $45.3 $209.3 79.4 $48.9 $235.1 87.9

□ Endowment Spend Cash Availability

▪ Current Year End $1.6 $150.9 55.5 $1.6 $210.9 80.0 $2.6 $237.7 88.9

▪ Carryover $40.0 $190.9 70.3 $22.9 $233.8 88.7 $25.3 $263.0 98.4

▪ Spend Cash Available 7/1 $23.2 $214.1 78.8 $25.8 $259.5 98.5 $20.4 $283.3 106.0

Total $214.1 78.8 $259.5 98.5 $283.3 106.0

The Year in Review…

• Improved Financial Position & Performance

Doing the right thing

• Clean Audit Opinion

Doing it the right way

• Active Investments in Students, Employees, & Programs

Doing it for the right reasons

Questions? Thank You!

Budget to Actual Report

First Quarter FY20

Daniel A Durbin

VP Finance/CFO

BOT 10-24-19

Budget to Actual Report thru September

FY 2020 versus FY2019

Modified-Accrual Basis

Status Indicators

Better than Expected

As Expected Worse than Expected

Annual Budget YTD Sep % Realized Annual Actuals YTD Sep % of Annual Trend Status

General Funds

Non-General Funds

Annual Budget YTD Sep % of Budget Annual Actuals YTD Sep % of Annual Trend Status

All Funds

Descriptions of Notable Revenue Variances

Revenues

Actuals (thru September)

FY 2020 FY2019 Change Notes

Tuition and Fees

Transfers In

UL Research Foundation

158,776,734

2,464,224

135,555,441

157,621,689

4,135,319

118,987,539

1,155,045

(1,671,095)

16,567,902

Increase due to higher tuition rates but lower relative to budget due

to enrollment

Due to timing of debt service transfers from corporations

Clinical and program support increases: $12.8million

- Clinical 48,216,207 42,057,543 6,158,663 Partially due to timing of contract billing and increase in House Staff residency

contract ($1.4M)

- Academic Program Support 21,477,439 14,797,429 6,680,010 Partially due to timing of contract billing and allocation to Public Health

- Pass-through financial aid 17,387,901 19,901,812 (2,513,910) Pell grants; Federal Work Study; KEES; College Access Program

UL Athletic Association 52,149,481 55,316,835 (3,167,355) $2.4 million less in football revenues (1 less game; no game guarantee)

UL Foundation 11,534,726 19,763,299 (8,228,573) One-time $10 million gift received in FY2019

Budget to Actual Report thru September

FY 2020 versus FY2019

Modified-Accrual Basis

Descriptions of Notable Expense Variances

Budget to Actual Report thru September

FY 2020 versus FY2019

Modified-Accrual Basis

Actuals (thru September)

Change

- Trager Clinic construction 1,501,749 0 1,501,749 One-time expense offset by $1.5M in gift revenues No

Adjusted Operating 51,904,808 48,135,253 3,769,555

Liquid Cash – FY 2018 to FY 2020

(Actuals through September FY 2020)

$78

$100

$100

$125

$125

$158

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

The Depth of Our Resources

(Actuals through September FY 2020)

Cumulative Total

Cumulative

Cumulative Total

Cumulative Days

• University Based Liquidity

□ ULAA Short-Term Investments $13.8 $140.6 52.0 $11.0 $169.4 62.6

□ General Line of Credit $50.0 $190.6 70.5 $50.0 $219.4 81.1

• UofL Liquidity Held by Foundation

□ Designated/Unrestricted Gift

Account Cash Available $36.7 $227.3 84.0 $43.7 $263.1 97.2

□ Endowment Spend Cash Availability

▪ Current Year End $20.5 $247.8 91.6 $13.8 $276.8 102.3

Total $273.9 101.2 $307.3 113.7

Questions? Thank You!

University of Louisville

Budget Planning & Monitoring

VP for Finance/CFO

About the Committee

• Committee Charge:

– To advise the president and her leadership team about the allocation of current and future financial resources and ensure they are in alignment with the university’s mission and strategic plan

• Chairs:

– University Provost

– University VP- Finance/CFO

• Membership:

• Deans (6)

• Faculty (9)

• Staff (3)

• Student (3)

• Central (9)

• Sub-Committees (to consolidate activities into the main committee):

» Funding Request Sub-committee

» Budget Model Allocation Sub-committee

» Administrative Activity Review Sub\committee

Details of Sub-Committees and Tasks

Colin Crawford Sonya Hardin Reg Bruce David Simpson Krista Wallace-Boaz Virginia Hosono Zach Pennington (3 Central)

Gerry Bradley David Jenkins Marion Hambrick David Owen David Schultz Shavon Wagner Ben Barberie (3 Central)

Craig Blakely Amy Lingo Monica Delano Bruce Keisling John Usher Lindsey Ronay Jasper Noble (3 Central)

New Funding Review

Budget Model Allocation

Administrative Unit Budgets

Subcommittee Members

University-wide budget goals, policies, and priorities;

• Corrective budget actions to avoid deficits;

• University enrollment targets;

• Employee compensation changes;

• Fringe benefit changes;

• Evaluation of university investments in programs and activities (cost vs benefit);

• Other changes identified by the provost and CFO;

• Investments in design and use of space; and

• Items recommended by subcommittees.

• Enhance peer understanding of our budget by being involved

Committee Topics for Consideration and Recommendations