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Microsoft PowerPoint - 081003 Financial statements.ppt ...

  1. 1. O on nivers Sy m sity ystem Financial Statement Analysis Orego Un Oregon University System 2003-04 to 2007-08 2003 04 t 2007 08 Michael Green, Associate Vice Chancellor, Finance & Administration and Controller, OUS 1
  2. 2. Caveats and Disclaimers • Fourth year p y presenting financial ratios and indicators g for Board consideration • Modeled after University of North Dakota System y y report • Included peer analysis beginning last year • Intended to provide better understanding of OUS’ financial condition by presenting key financial information i f ti 2 Oregon University System
  3. 3. Caveats and Disclaimers (cont.) • Using preliminary (unaudited) financial statement information that is subject to change • OUS reporting items of note: – The Chancellor’s Office books contain some cash and investment entries needed to reconcile to the State’s financial records – The Chancellor’s Office books contain certain Systemwide investment and debt balances that have not been allocated to the institutions • Excludes activity from the Federal Direct Student Loan program p g 3 Oregon University System
  4. 4. Caveats and Disclaimers (cont.) • Mission differences can significantly affect these g y ratios, e.g., research activities, statewide public service activities, etc. • This analysis includes revenues and expenditures from all funds, thus these numbers may differ from other analyses • No single ratio or set of ratios will ever answer all the questions q 4 Oregon University System
  5. 5. Overview • OUS full-time equivalent enrollment increased to 71,919 for FY 2008, a 0.8% increase over FY 2007 • State funding in FY 2008 rebounded to the FY 2004 level of 24% of revenues • Operating losses h O ti l have continued at some i tit ti ti d t institutions • OUS institutions have less financial resources than their peers • OUS institutions spend more on Core Services as a percentage of revenues than their peers • OUS institutions spend less on Student Services and Administration and Physical Plant than their peers • OUS faculty bring in more research revenue than their peers 5 Oregon University System
  6. 6. Enrollment 2007-08 Projected versus Actual • Systemwide, FTE growth was 0.8%, which was 0.3% below original projections FY08 Projected versus Actual FTE Enrollment One-Year Growth Rate Projected Actual Difference EOU -5.8% -1.0% 4.8% OIT -0.3% 0 3% 1.3% 1 3% 1.6% 1 6% OSU 1.9% 0.4% -1.5% Cascades 3.2% 4.3% 1.1% PSU 2.4% 1.5% -0.9% SOU 0.5% 0.9% 0.4% UO 0.7% -0.3% -1.0% WOU -0.5% 5.6% 6.1% Total T t l OUS 1.1% 1 1% 0.8% 0 8% -0.3% 0 3% 6 Oregon University System
  7. 7. Current Ratio June 30 30, 2008 2007 200 2004 200 EOU 2.0 1.7 1.7 OIT 2.6 26 2.1 21 2.3 23 OSU 2.2 2.0 2.0 PSU 1.5 15 2.0 20 1.5 15 SOU 2.3 2.3 1.8 UO 2.0 20 2.3 23 1.9 19 WOU 2.9 2.8 2.8 7 Oregon University System
  8. 8. Several institutions have sustained operating losses Income (Loss) Before Other Revenues, Expenses, Gains, and Losses (Dollars in millions) FY 2008 FY 2007 FY 2004 EOU $0.0 ($1.8) $2.1 OIT (0.6) (0.2) (0.8) OSU ( ) (1.8) ( (12.6) ) 13.1 PSU 14.7 10.7 9.9 SOU (1.5) (2.3) (3.4) UO (10.7) 13.4 (2.6) WOU (1.0) (0.6) (0.3) 8 Oregon University System
  9. 9. Trend and Peer Analysis • Peer analysis includes only those peer institutions that publish financial statements in accordance with GAAP (each OUS institution has at least five peers in this analysis) • Peer ratios are provided as a frame of reference • Peer comparison is of FY 2007 data • C rrentl reviewing our selected Peers and o r Currently re ie ing o r our peer institutions may change in future analyses 9 Oregon University System
  10. 10. OUS Contribution Ratio Contribution Ratio - OUS 28% 27% 27% 27% 27% 24% 24% 24% 24% 24% 22% 22% 22% 22% 22% 15% 14% 14% 15% 15% 14% 12% 12% 11% 11% Student Tuition and Fees Grants and Contracts Auxiliary Enterprises Other State Appropriations 2004 2005 2006 2007 2008 10 Oregon University System
  11. 11. Funding per student against peers State Appropriation Funding per Student FTE - Peer Comparison $12,209 $11,258 $8,145 $7,409 $6,708 $6,233 $5,846 $5,653 $5,653 $5,653 $4,286 $3,887 $3,513 $3,502 EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 11 Oregon University System
  12. 12. Tuition and Fees per student against peers Tuition and Fees (net) per student FTE - Peer Comparison $11,377 $8,675 $7,232 $6,704 $6,792 $6,266 $4,913 $4,853 $4,323 $4,464 $4 464 $4,323 $4,315 $4,323 $3,760 EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 12 Oregon University System
  13. 13. Grant, contract revenue: faculty vs peers Grants and Contract Revenues per Full time Faculty - Peer Comparison Full-time $239,837 $201,944 $171,716 $142,804 $97,401 $91,608 $74,768 $70,889 $62,952 $58,844 $54,427 $49,462 $49 462 $49,462 $49 462 $49,462 $49 462 EOU Pe e r OIT Pe e r OSU Pe e r PSU Pe e r SOU Pe e r UO Pe e r WOU Pe e r Avg Avg Avg Avg Avg Avg Avg 2007 2007 2007 2007 2007 2007 2007 13 Oregon University System
  14. 14. Core Service expenditures vs peers Core Service Expenditures as percentage of Revenues - Peer Comparison Core Service = instruction, research, public service (excluding Auxillary Enterprises) 67.0% % 63.3% 57.2% 57.9% 53.7% 53.1% 51.0% 49.2% 49 2% 47.3% 47.6% 46.6% 45.4% 45.4% 45.4% EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 14 Oregon University System
  15. 15. Instructional costs vs peers Instruction costs per student FTE - Peer Comparison I t ti t t d t P C i (excluding Auxillary Enterprises) $17,099 $11,472 $8,149 $7,933 $7,805 $7,364 $6,437 $6 437 $6,127 $6,041 $5,807 $5,142 $5,142 $5,200 $5,142 EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 15 Oregon University System
  16. 16. Support services, student aid vs peers Support Services and Student Aid as percentage of Revenues - Peer Comparison Academic Support, Student Services and Student Aid (excluding Auxillary Enterprises) 25.4% 25 4% 25.4% 25 4% 25.4% 25 4% 25.3% 25 3% 24.5% 23.9% 22.9% 21.9% 20.9% 17.8% 15.1% 14.0% 12.3% 11.3% EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 16 Oregon University System
  17. 17. Student services costs vs peers Student Services costs per Student FTE - Peer Comparison (excluding Auxiliary Enterprises) $1,357 $1,259 $1,259 $1,259 $1,148 $1,092 $1,075 $1,008 $995 $980 $933 $915 $861 $570 EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 17 Oregon University System
  18. 18. Administration, physical plants vs peers Administration and Physical Plant as percentage of Revenues - Peer Comparison Ad i i t ti d Ph i l Pl t t fR P C i (excluding Auxillary Enterprises) 21.6% 20.0% 20.0% 20.0% 19.6% 16.3% 16.5% 14.9% 14.3% 13.1% 12.5% 12.5% 10.6% 10.6% EOU OIT SOU WOU OSU PSU UO 2007 Peer Avg 2007 18 Oregon University System
  19. 19. Primary reserve ratio: Regionals Primary Reserve Ratio - Regionals (Expendable Net Assets as a percentage of Total Adjusted Expenses) 32.7% 29.2% 29 2% 28.6% 28.3% 26.9% 26.6% 24.2% 24.7% 23.4% 22.9% 19.8% 20.1% 18.8% 18.8% 16.5% 16.1% 16.0% 15.2% 13.7% 13.4% EOU OIT SOU WOU 2004 2005 2006 2007 2008 19 Oregon University System
  20. 20. Primary reserve ratio: Large campuses Primary Reserve R ti - L P i R Ratio Large campuses (Expendable Net Assets as a percentage of Total Adjusted Expenses) 27.1% 25.5% 24.6% 24 6% 24.7% 24 7% 23.8% 23.9% 22.5% 22.7% 21.1% 21.5% 18.8% 17.1% 16.7% 16.1% 15.3% OSU PSU UO 2004 2005 2006 2007 2008 20 Oregon University System
  21. 21. Debt burden ratio: Regionals Debt Burden Ratio - Regionals (Principal and Interest Paid as a percentage of Total Adjusted Expenses) 6.1% 5.9% 5 9% 6.0% 5.9% 4.4% 4.2% 4 2% 3.9% 3.9% 3.9% 3.7% 3.8% 3.8% 3.8% 3.6% 3.6% 3.3% 3.4% 3.2% 3.0% 2.6% EOU OIT SOU WOU 2004 2005 2006 2007 2008 21 Oregon University System
  22. 22. Debt burden ratio: Large campuses Debt Burden Ratio - Large campuses (Principal and Interest Paid as a percentage of Total Adjusted Expenses) 5.1% 4.6% 4.5% 4.4% 4.3% 4.1% 3.5% 3.3% 3.3% 2.9% 2.9% 2.6% 2.4% 2.3% 1.7% OSU PSU UO 2004 2005 2006 2007 2008 22 Oregon University System
  23. 23. Primary reserve & debt burden ratios 194% 112% 80% 0.0% 70% 1.0% 1 0% 60% 2.0% 50% 3.0% Primary reserve 40% 4.0% Debt Burden Peer Avg Peer Range 30% 5.0% 20% 6.0% 10% 7.0% 0% 8.0% 8 0% EOU OIT SOU WOU OSU PSU UO 23 Oregon University System
  24. 24. Summary • OUS FTE enrollment increased 0.8% from FY 2007 • State support as a percentage of revenues returned to the 2004 level 24% level, • In general, OUS institutions spend less on Instruction costs per student FTE, Student Services, Administration, p and Physical Plant than their peers. • Despite a challenging environment, OUS faculty generate more Grant and Contract revenue than their peers • Our peer institutions have better financial strength as evidenced b hi h state f di id d by higher t t funding, hi h primary higher i reserves, and lower debt burden ratios 24 Oregon University System
  25. 25. Questions or Comments? 25 Oregon University System

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