Staff Senate BUDGET PRESENTATION 12-9-19

University of Louisville (Combined) FY 2019 Financial Results (from Audited Statements) Daniel A Durbin VP for Finance/CFO BOT 10-24-19 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 Student tuition and fees, net State appropriations Clinical services and practice plans Grants and contracts Intercollegiate athletics Affiliate contributions, net Capital appropriations & gifts Other revenues Total Revenues EXPENSES Salary & wages Employee benefits Utilities Scholarships and fellowships Supplies & services Depreciation Interest on capital asset-related debt Total operating expenses Increase (Decrease) in Net Position 6/30/19 6/30/18 $ 223,173 128,930 287,393 152,019 86,826 61,324 58,147 101,561 1,099,373 $ 217,395 132,959 262,096 144,596 76,491 67,608 44,368 101,630 1,047,143 570,922 137,811 21,251 32,527 250,848 52,213 10,457 1,076,030 562,274 142,801 20,249 32,216 226,952 48,780 10,789 1,044,060 $ 23,343 $ 3,083 $ Diff $ $ % Diff 5,778 (4,029) 25,297 7,423 10,335 (6,284) 13,779 (69) 52,230 2.7% (3.0%) 9.7% 5.1% 13.5% (9.3%) 31.1% (0.1%) 5.0% 8,649 (4,990) 1,003 311 23,897 3,433 (332) 31,970 1.5% (3.5%) 5.0% 1.0% 10.5% 7.0% (3.1%) 3.1% 20,260 657.2% Statement of Net Position (Balance Sheet) June 30, 2019 and 2018 6/30/19 TOTAL ASSETS Unrestricted cash and cash equivalents Restricted cash and cash equivalents Short-term investments Accounts receivable, net Due from Affiliates Investments held with ULF Capital assets, net Other assets Total assets $ 110,451 2,152 6,517 139,040 34,442 11,236 976,355 38,023 1,318,216 $ DEFERRED OUTFLOWS OF RESOURCES $ $ TOTAL LIABILITIES Accounts payable and accrued liabilities Bonds and notes payable Other liabilities Total liabilities 8,080 80,839 35,816 137,570 37,853 13,884 971,395 23,519 1,300,876 $ Diff $ 29,612 $ (33,664) 6,517 1,470 (3,411) (2,648) 4,960 14,504 17,340 9,680 $ $ 103,575 259,263 150,297 $ 513,135 $ 102,439 271,258 167,895 $ 541,592 $ DEFERRED INFLOWS OF RESOURCES $ $ NET POSITION Net investment in capital assets Restricted - nonexpendable Restricted - expendable Unrestricted Total net position Unrestricted Net Position excluding GASB 75 & OPEB 6/30/18 % Diff 36.6% (94.0%) 0.0% 1.1% (9.0%) (19.1%) 0.5% 61.7% 1.3% (1,600) -16.5% 1,136 (11,995) (17,598) $ (28,457) 1.1% (4.4%) (10.5%) (5.3%) 61,275 $ 20,854 34.0% $ 716,400 4,710 79,510 (69,588) $ 731,032 $ 701,024 1,633 79,622 (74,590) $ 707,689 $ 15,376 3,077 (112) 5,002 $ 23,343 2.2% 188.4% (0.1%) 6.7% 3.3% 24,481 18,026 6,455 35.8% 82,129 • 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 • $5 mil increase in our general operations (liquidity plan) The Depth of Our Resources at June 30, 2019 FY 2017 Actual ($ millions) Amount • University Based Liquidity □ Liquid Cash □ ULAA Short-Term Investments □ General Line of Credit $77.9 $25.3 • UofL Liquidity Held by Foundation □ Designated/Unrestricted Gift Account Cash Available $46.1 □ Endowment Spend Cash Availability ▪ Current Year End $1.6 ▪ Carryover $40.0 ▪ Spend Cash Available 7/1 $23.2 Total Cumulative Total FY 2018 Actual Cumulative Days Amount Cumulative Total FY 2019 Actual Cumulative Days Amount Cumulative Total Cumulative Days $77.9 $103.2 28.7 38.0 $100.1 $13.9 $50.0 $100.1 $114.0 $164.0 38.0 43.2 62.2 $125.0 $11.2 $50.0 $125.0 $136.2 $186.2 46.7 50.9 69.6 $149.4 55.0 $45.3 $209.3 79.4 $48.9 $235.1 87.9 $150.9 $190.9 $214.1 $214.1 55.5 70.3 78.8 78.8 $1.6 $22.9 $25.8 $210.9 $233.8 $259.5 $259.5 80.0 88.7 98.5 98.5 $2.6 $25.3 $20.4 $237.7 $263.0 $283.3 $283.3 88.9 98.4 106.0 106.0 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 FY2020 versus FY2019 Modified-Accrual Basis Revenues Annual Budget General Funds Tuition and Fees State Appropriations Transfers In Other Revenue Auxiliaries Hospital-Related General Funds Total Non-General Funds UL Research Foundation UL Athletic Association UL Foundation Other Department Funds Non-General Funds Total Total Revenues Annual Actuals % of Annual Trend Status 158,776,734 37,990,100 2,464,224 4,543,593 5,674,039 2,491,484 211,940,174 48.6% 30.0% 10.4% 27.9% 45.3% 27.0% 41.1% 314,291,115 127,117,700 23,461,045 16,922,416 12,604,644 8,522,013 502,918,933 157,621,689 38,135,300 4,135,319 4,135,317 5,487,809 2,291,673 211,807,107 50.2% 30.0% 17.6% 24.4% 43.5% 26.9% 42.1% -1.6% 0.0% -7.2% 3.4% 1.7% 0.1% -1.0% -2 1 -1 508,670,468 117,714,000 53,246,000 36,435,770 716,066,238 $1,231,391,568 135,555,441 52,149,481 11,534,726 8,368,077 207,607,724 $419,547,898 26.6% 44.3% 21.7% 23.0% 29.0% 34.1% 568,696,016 110,732,317 75,708,138 32,470,471 787,606,942 $1,290,525,875 118,987,539 55,316,835 19,763,299 8,465,585 202,533,258 $414,340,365 20.9% 50.0% 26.1% 26.1% 25.7% 32.1% 5.7% -5.7% -4.4% n/a 3.3% 2.0% 1 2 % of Budget Annual Actuals FY 2019 YTD Sep % of Annual Trend Status 21.7% 23.3% 17.0% 31.7% 38.3% 9.4% 21.9% 563,650,112 142,236,553 385,713,606 132,480,708 22,303,642 18,642,049 $1,265,026,670 125,272,719 33,782,988 48,135,253 41,813,701 10,035,280 2,472,405 $261,512,347 22.2% 23.8% 12.5% 31.6% 45.0% 13.3% 20.7% -0.5% -0.4% 4.5% 0.1% -6.7% -3.9% 1.3% 2 1 Annual Budget Revenue Over/(Under) Expenses % Realized FY 2019 YTD Sep 326,958,382 126,633,700 23,655,527 16,311,627 12,528,885 9,237,209 515,325,330 Expenses All Funds Salary Fringe Benefits Operating Financial Aid Debt Service Utilities Total Expenses FY 2020 YTD Sep Status Indicators Better than Expected As Expected Worse than Expected 575,197,629 144,697,499 325,507,029 135,352,478 29,620,341 21,016,592 $1,231,391,568 FY 2020 YTD Sep 125,071,805 33,721,598 55,232,935 42,878,801 11,348,208 1,971,676 $270,225,022 $149,322,876 $152,828,019 Budget to Actual Report thru September FY2020 versus FY2019 Modified-Accrual Basis Descriptions of Notable Revenue Variances Actuals (thru September) Revenues FY2019 Change Notes 158,776,734 157,621,689 1,155,045 Increase due to higher tuition rates but lower relative to budget due to enrollment 2,464,224 4,135,319 135,555,441 118,987,539 - Clinical 48,216,207 42,057,543 6,158,663 - Academic Program Support 21,477,439 14,797,429 6,680,010 Partially due to timing of contract billing and allocation to Public Health 5,875,835 5,246,361 17,387,901 19,901,812 (2,513,910) Pell grants; Federal Work Study; KEES;College Access Program ULAthletic Association 52,149,481 55,316,835 (3,167,355) $2.4 million less in football revenues (1 less game; no game guarantee) ULFoundation 11,534,726 19,763,299 (8,228,573) One-time $10 million gift received in FY2019 Tuition and Fees Transfers In ULResearch Foundation - Hospital - Pass-through financial aid 10 FY2020 (1,671,095) Due to timing of debt service transfers from corporations 16,567,902 Clinical and program support increases: $12.8million Partially due to timing of contract billing and increase in House Staff residency contract ($1.4M) 629,475 Budget to Actual Report thru September FY2020 versus FY2019 Modified-Accrual Basis Descriptions of Notable ExpenseVariances Actuals (thru September) Expenses FY 2020 Operating 55,232,935 48,135,253 7,097,682 - Trager Clinic construction 1,501,749 1,501,749 One-time expense offset by $1.5M in gift revenues No - PMOB / Peds support 1,032,144 1,032,144 Final payment in 1Q of FY 2020 Yes 794,234 794,234 Various software licenses Yes 51,904,808 48,135,253 3,769,555 - IT software Adjusted Operating 11 Change FY 2019 Notes Timing related? Liquid Cash – FY 2018 to FY 2020 (Actuals through September FY 2020) $180 $158 $160 $140 $ millions $120 $100 $125 $125 $100 $100 $80 $78 $60 $40 $20 $0 Jun Jul Aug Sep Oct Nov FY18 12 Dec FY19 Jan FY20 Feb Mar Apr May Jun The Depth of Our Resources (Actuals through September FY 2020) Sep-2018 Actual ($ millions) • University Based Liquidity □ Liquid Cash □ ULAA Short-Term Investments □ General Line of Credit • UofL Liquidity Held by Foundation □ Designated/Unrestricted Gift Account Cash Available □ Endowment Spend Cash Availability ▪ Current Year End ▪ Carryover Total 13 Amount Cumulative Total Sep-2019 Actual Cumulative Days Amount Cumulative Total Cumulative Days $126.8 $13.8 $50.0 $126.8 $140.6 $190.6 46.9 52.0 70.5 $158.4 $11.0 $50.0 $158.4 $169.4 $219.4 58.5 62.6 81.1 $36.7 $227.3 84.0 $43.7 $263.1 97.2 $20.5 $26.2 $247.8 $273.9 $273.9 91.6 101.2 101.2 $13.8 $30.5 $276.8 $307.3 $307.3 102.3 113.7 113.7 Questions? Thank You! 14 University of Louisville Budget Planning & Monitoring Committee Daniel A Durbin VP for Finance/CFO December 9, 2019 About the Committee • Committee Charge: – • Chairs: – – • University Provost University VP- Finance/CFO Membership: • • • • • • 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 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 16 Details of Sub-Committees and Tasks 17 Subcommittee Members 18 New Funding Review Budget Model Allocation Administrative Unit Budgets Colin Crawford Gerry Bradley Craig Blakely Sonya Hardin David Jenkins Amy Lingo Reg Bruce Marion Hambrick Monica Delano David Simpson David Owen Bruce Keisling Krista Wallace-Boaz David Schultz John Usher Virginia Hosono Shavon Wagner Lindsey Ronay Zach Pennington Ben Barberie Jasper Noble (3 Central) (3 Central) (3 Central) Committee Topics for Consideration and Recommendations 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 19 ... You! Budget to Actual Report First Quarter FY20 Daniel A Durbin VP Finance/CFO BOT 10-24-19 Budget to Actual Report thru September FY2020 versus FY2019 Modified-Accrual Basis Revenues Annual Budget. .. $12.8million Partially due to timing of contract billing and increase in House Staff residency contract ($1.4M) 629,475 Budget to Actual Report thru September FY2020 versus FY2019 Modified-Accrual... plan 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