UniversityInteractiveSimulationA model for UniversityStrategic Planning andDecision-making
What is UIS?• A powerful interactive simulation of a college oruniversity that calculates outcomes and predictsthe trends ...
Why University Interactive Simulation?• Projects the short-and long-term effects ofstrategic decisions• Allows “what-if” a...
Features of the Model• Provides analysis and projection of financialstate of the University as well as prediction offactor...
Building the UIS Model• Assemble University Historical and Current Data• Financial• Admissions• Retention• Academic• Staff...
Predictive modeling of YOUR University6Financials Students Academics CapitalNeedsOperatingBudgetDemographics Quality Maint...
Financial Model7OperatingFundRevenuesExpensesTuition and Fees(Less Aid)Other RevenueGifts, Grants, etc.InvestmentSalaries ...
Calculated Outcomes8ENROLLMENTSOPERATINGBUDGETSUMMARYCASH BALANCEENDOWMENTSTAFF/FAC GAPCAPITALPROJECTSBASICDEFENSIVEINTERV...
9Subjective Outcomes and Factors Affecting ThemStudentSatisfactionFaculty MoraleBoard SupportAlumni SupportTuitionand fees...
10Typical Resource Allocation SheetResource AllocationTopic FY 0 FY +1 FY +2 FY +3 FY +4 FY +5Enrollment Management BaseTu...
Operating Fund11
12Strategic Dashboard
UIS Can Work for You• Training and Certification of Leaders• Transparent communications tool todevelop understanding among...
K-D’s involvement with your University• Engage key leaders in a series of one-day,interactive seminars.• Understand how un...
15Contact K-D Consultants for a freeconsultationWebsite: www.k-dconsultants.comemail: fletcherlamkin@icloud.comPhone: 888-...
QuestionsorCommentsVisit www.k-dconsultants.com
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Simulation of a University Financial System

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University Interactive Simulation (UIS) is a powerful interactive simulation of a college or university that calculates outcomes and predicts the trends and results of strategic decisions.

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Transcript of "Simulation of a University Financial System"

  1. 1. UniversityInteractiveSimulationA model for UniversityStrategic Planning andDecision-making
  2. 2. What is UIS?• A powerful interactive simulation of a college oruniversity that calculates outcomes and predictsthe trends and results of strategic decisions.• UIS is used in UIS Seminar to predict outcomes fora fictional university with characteristics andissues typical of today’s era in higher education.• UIS can also be adapted to a specific universityto provide an exceptionally useful predictivemanagement tool.2
  3. 3. Why University Interactive Simulation?• Projects the short-and long-term effects ofstrategic decisions• Allows “what-if” analysis with variableparameters• Learning without “hard knocks”• Avoidance of “crashes”• Cost effective method to aid strategic planningand decision-making• Very supportive of new HLC AccreditationCriteria3
  4. 4. Features of the Model• Provides analysis and projection of financialstate of the University as well as prediction offactors affecting student, faculty, Board, andalumni satisfaction.• Links operating fund, enrollment management,cash flow, endowment, and capital investmentto display the University’s financial picture• Allows change of multiple variables to predictshort-term and long-term effects of strategicdecisions.4
  5. 5. Building the UIS Model• Assemble University Historical and Current Data• Financial• Admissions• Retention• Academic• Staffing• Capital Needs• Advancement• Determine sensitivity to change• Create a list of the “big strategic decisions”• Apply “decisions” and change parameters to BasicData to predict the next five years5
  6. 6. Predictive modeling of YOUR University6Financials Students Academics CapitalNeedsOperatingBudgetDemographics Quality MaintenanceCash Flow Admissions Programs NewConstructionEndowment Retention New Majors? RenovationStaffing Unmet needs FacultyMakeupExpansionPay andBenefitsAthletics Class Size TechnologyFundraising Projections? DistanceLearning
  7. 7. Financial Model7OperatingFundRevenuesExpensesTuition and Fees(Less Aid)Other RevenueGifts, Grants, etc.InvestmentSalaries & BenefitsFacultyStaffOther ExpensesOperatingDebt, DepreciationEndowmentCashReserveCapitalInvestment
  8. 8. Calculated Outcomes8ENROLLMENTSOPERATINGBUDGETSUMMARYCASH BALANCEENDOWMENTSTAFF/FAC GAPCAPITALPROJECTSBASICDEFENSIVEINTERVALTUITION/FEESSALARIES &BENEFITSPAY GAP
  9. 9. 9Subjective Outcomes and Factors Affecting ThemStudentSatisfactionFaculty MoraleBoard SupportAlumni SupportTuitionand feesTuitionDiscountRoom andBoard OperatingExpense# Faculty# StaffPayCapitalExpenditureFacilitiesGroundsCashBalanceSurplus orDeficit StudentQualityMarketingNewInitiativesStudentSatisfactionFaculty MoraleBoard SupportAlumni Support
  10. 10. 10Typical Resource Allocation SheetResource AllocationTopic FY 0 FY +1 FY +2 FY +3 FY +4 FY +5Enrollment Management BaseTuition % Increase 5% 5% 5% 5% 5% 5% 5%Budgeted Freshman TDR (%) 45% 45% 45% 45% 45% 45% 45%Target ACT Average 24 24 24 24 24 24 24Personnel and Pay Base# Faculty Increase 0 0 0 0 0 0 0Faculty Pay % Increase 3% 3% 3% 3% 3% 3% 3%Adjunct Pay % Increase 3% 3% 3% 3% 3% 3% 3%# Staff Increase 0 0 0 0 0 0 0Staff Pay % Increase 3% 3% 3% 3% 3% 3% 3%Retirement Benefits 10% 10% 10% 10% 10% 10% 10%Operational Variables BaseFees Increase 5% 5% 5% 5% 5% 5% 5%Rm and Board Increase 5% 5% 5% 5% 5% 5% 5%Average Students per Class 15.0 15.0 15.0 15.0 15.0 15.0 15.0Operational expense % increase 5% 5% 5% 5% 5% 5% 5%Marketing and Public Relations ($k) $200 $200 $200 $200 $200 $200 $200Contingency 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Capital and New InitiativeExpenditures10-yr Requirement(Thousands of $) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Annual Maintenance and Capital $20,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Annual Capital $6,500 $650 $650 $650 $650 $650 $650Major Maintenance $4,000 $400 $400 $400 $400 $400 $400Access, Safety and Security $5,000 $500 $500 $500 $500 $500 $500Information Technology $4,500 $450 $450 $450 $450 $450 $450New Initiatives $64,050 $0 $0 $0 $0 $0 $0Dormitory Renovation $2,000 $0 $0 $0 $0 $0 $0Sci and Tech center $20,000 $0 $0 $0 $0 $0 $0Grounds Improvements $2,000 $0 $0 $0 $0 $0 $0Student Rec Center $6,000 $0 $0 $0 $0 $0 $0Fine Arts Center $5,000 $0 $0 $0 $0 $0 $0Athletic Center $6,000 $0 $0 $0 $0 $0 $0New Student Dormitory $4,000 $0 $0 $0 $0 $0 $0New Academic Building $15,000 $0 $0 $0 $0 $0 $0New Campus Initiative $1,200 $0 $0 $0 $0 $0 $0Online Learning Center $1,000 $0 $0 $0 $0 $0 $0Emergency Management Major $750 $0 $0 $0 $0 $0 $0Mens and Womens lacrosse $600 $0 $0 $0 $0 $0 $0Hi Tech Laboratory $500 $0 $0 $0 $0 $0 $0Graduate and Continuing Education BaseGraduate School Tuition Increase 3.60% 3.60% 3.60% 3.60% 3.60% 3.60% 3.60%Graduate School Discount Rate 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00%Continuing Education Tuition Increase 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%New Loan/bond $0 $0 $0 $0 $0 $0 $0
  11. 11. Operating Fund11
  12. 12. 12Strategic Dashboard
  13. 13. UIS Can Work for You• Training and Certification of Leaders• Transparent communications tool todevelop understanding among universityconstituencies• Aid to Strategic Planning• Vital information and data for strategicdecision-making• Very effective preparation foraccreditation13
  14. 14. K-D’s involvement with your University• Engage key leaders in a series of one-day,interactive seminars.• Understand how university financial systems work• Learn how the budget is linked to strategic plans• Understand complex interactions, second andthird order effects, and unintended consequencesof strategic decisions.• Learn how to use UIS• Utilize UIS as an aid to strategic decision makingfor your university.• Build the Model using your university’s information• Apply the model for planning and budgeting• Refine and perfect the model and its use.14
  15. 15. 15Contact K-D Consultants for a freeconsultationWebsite: www.k-dconsultants.comemail: fletcherlamkin@icloud.comPhone: 888-425-1112
  16. 16. QuestionsorCommentsVisit www.k-dconsultants.com

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