May Meeting of the Finance and Audit Committee of the Board of Trustees

—Written by Deanna Herbert

University of Northern Colorado Board of directors Meeting of the Finance and Audit Committee Friday May 7, and discussed the tax year 202021 third quarter (Q3) financial report, fiscal year 2021-22 budget registration overview and update and a profit and loss Ministry of Housing and Residential Education report.

Financial year 2020-21 (FY21) Third Quarter Financial Report

The first financial perspectives of the yearBudget 21 provided for the use of $ 6 million in operating reserves, in addition to the implementation of cost reduction initiatives of $ 17.3 million, to make up for the shortfall in revenue . The previous forecast, at the end of the second quarter, predicted the use of only $ 2.6 million in reserves with further reductions in planned spending. This forecast, including actual results up to the third quarter, has been updated to reflect the most recent assumptions and forecasts an entry of $ 3.3 million, an improvement of $ 5.9 million.

In December, the Coronavirus Response and Relief Supplementary Appropriation Act (CRRSAA) was enacted and additional funding was allocated to the Higher Education Emergency Relief Fund (HEERF II). CRRSAA HEERF II funding to UNC was $ 12.6 million, of which $ 3.8 million directly to students and $ 8.8 million remaining to the institution. The university mapped out the intended use of additional funding in the third trimester with $ 3.1 million realized as revenue and spent during the fiscal year21 and the remaining $ 5.7 million will be allocated to FY22.

Planned spending has been reduced substantially at tthere Q3 update for a total reduction of $ 6.2 million from budget. The prolonged decline in activity on campus, a mixture ofhuman and remote services and travel restrictions for most of the year all contributed to the additional expense savings. Including additional adjustments planned for the balance sheet elements, the net impact of year-to-date changes is a total improvement of $ 9.3 million over a project’s budget operish sover $ 3.3 million.

The University’s cash position is expected to be $ 55.3 million at year-end, $ 12.8 million higher than the 2019 year-end cash position of 42 , $ 5 million. The cash flow situation continues to improve due to the institution’s continued commitment to strengthen the budget before and despite the effects of the pandemic and this work must continue in order to improve the liquidity of the NCU and d ‘ensure financial stability at the present time. in the future.

Fiscal year 2021-22 (FY22) Budget overview

Exercise discussion22 budget overview began with an overview of anticipated registration in the fall. While enrollments of new first-time students and new transfer students are expected to increase in fall 2021, overall enrollments are expected to be 4% lower due to the decline in new student cohorts in fall 2019 and in the fall of 2020. This creates financial pressure on the future. years old, with undergraduate enrollment no expected at return to fall 2020 levels through fall 2025. For preliminary exerciseBased on budget assumptions, graduate enrollment in fall 2021 is expected to be equal to fall 2020 levels.

Even if the pandemic introduced a financial pressure of $ 28 million for fiscal year 21 ($ 23 million in revenue cuts and $ 5 million inincreased spending), UNC responded with a campus-wide effort to success to close this gap. Additionally, the HEERF II Ffinancing of the government stimulus was also a factor in FY21 supporting critical spending and infrastructure needs. The final attribution of HEERF funding, for an amount of $ 22 million, should this month with $ 11 million for students and $ 11 million to the institution. Becauseat the university waits Federal guidelines on how eis HEERF III money can be used it is not thereet included in the FY22 budget.

The follows increase in tuition and fees are included in the exercise22 budget:

  • 7% increase in undergraduate tuition fees
  • 3% increase in graduate tuition fees
  • 3% increase in tuition fees
  • 4% increase in room and board rates
  • 7% increase in differential tuition fees for PVA programs

These changes will result in an increase in the total cost of undergraduate participation (including tuition, fees, and room and board with a level 3 room and 14 meal plan) of approximately $ 1,072 or 4.9% compared to FY21. Despite the increases, UNC will remain the most affordable research university and one of the most affordable public universities in Colorado. Additionally, approximately 30% of UNC students have historically had no tuition and net fees as a result of applying for financial aid from federal, state, and institutional sources.

A draft of the preliminary exercise22 budget is available in the Overview of the budget for fiscal year 2021-222.

Profit and loss of residence

Vice-President of Student Affairs, Katrina Rodriguez, Doctorate., gave an overview of a profit and loss examination by residence for the Department of Housing and Residential Education (HRE). EDH accommodates up to 3 people on campus,500 students in traditional residences, suites, houses and apartments. the Analysis focused on income and expenditure of FY19, the most recent pre-COVID year.

Most of the income from housing and residential education comes from student room costs. Net income from EDH and catering services Also provide fundssupport for other areas of the campus the operations through administrative overheads and cost allowances for custody, field, maintenance, police and IT services.

Most schools in the state have maintained an average 3% increase in rooms and meals each year and similar increases are again planned for FY22. Since UNC prices have remained stable in recent years, there is now a large gap in room and meal prices between UNC, CSU, and CU, for example. Information available to us on increases in operating costs, our pricing relative to our competitors, and the price elasticity study conducted in FY19 informed the decision to recommend a 4% increase for exercise 22.

Additional information and data are available in the executive summary of profit and loss.

Development oF the FYThe budget will be finalized in the coming weeks and a recommendation, with all additional and supporting information, will be presented for approval in June. 11 Board meeting.

See the Board of Trustees Finance and Audit Committee May 7 meeting documents and recording of the meeting.


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