Report on the Fiscal Year ending June 30, 2010:
We’ve closed the books for the 2009-10 school year and our auditors have concluded their campus-based work with a solid report of our operations for the past fiscal year. We ended the year with a small surplus.
Lower than planned undergraduate enrollment last year and a higher than expected level of financial aid reduced our net tuition revenue. Additionally, annual giving fell below expected levels. The revenue shortfalls were offset by deferring facility improvement and equipment expenses, obtaining lower than expected debt service levels, and managing the budget with care.
Even though revenue did not meet our budget plan, we still closed the books with a $70,000 surplus. When combined with a positive audit adjustment, we were able to transfer $236,000 to the University Improvement Fund (UIF). This fund is traditionally used to support one-time investments in facilities (e.g. roof repairs, or other major systems replacements), technology and academic program equipment, or projects.
Update on the 2010-11 Fiscal Year Financial Plan:
Our undergraduate enrollment yield for the entering class of 2010 exceeded expectations, and improved retention of existing students improved our initial revenue forecast for fiscal year 2011. Added enrollment requires that we restore some of the positions and service reductions made during the initial budget plan for the 2010-11 academic year. Additional faculty, lecturer and adjunct positions will accommodate the influx of new students. Various budget allocations have been increased to provide proper service levels for the additional students we expect. Funding also has been restored for vacant custodial, security and facilities services positions, and hiring is underway. We’ve also restored a significant portion of the operational budget set aside for facility improvements and reduced our anticipated reliance on the reserve fund for debt service in the coming year.
The board and administration acknowledge that increases in salaries for this year are not in our plan, but we remain committed to sustaining competitive salary and benefit levels. The priority we placed on preserving jobs took a toll in the past year on our facilities and important reserve funds. Addressing those needs will restore vital strength to the institution and to our future financial condition.
A revised budget has been reviewed with trustees on the executive and finance committees of the board; action is expected on an amended budget during the October board meeting.
Brian Benzel
Vice President for Finance and Administration
