Operational and Financial Review - NAU presentation to ABOR
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Presentation delivered by President Cheng at the ABOR meeting in March 2015 as the institution's annual operational and financial review. Produced by Eva Putzova with assistance from many talented NAU staff members. Designed by Julie Sullivan.
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Operational and Financial Review - NAU presentation to ABOR
- 1. President Rita Hartung Cheng – March 11, 2015 Redefining Our Relationships And Prioritizing Investments
- 2. Page Verde Valley Prescott Kingman Bullhead City North Valley Lake Havasu City East Valley West Valley Chandler/Gilbert Signal Peak MCAS-Yuma South Mountain Glendale Phoenix Kayenta Communiversity @ Queen Creek Mesa Tuba City Chinle Fort Defiance Keams Canyon Ganado Show Low Paradise Valley Whiteriver Scottsdale Apache Junction Thatcher Aravaipa Tucson GateWay Communiversity @ Surprise Flagstaff YAVAPAI YUMA PHOENIX BIOMEDICAL TUCSON NORTH Phoenix Tucson
- 3. How Far We Have Come
- 4. Old NEW New
- 5. 1995 2000 2005 2010 2014 30,000 25,000 20,000 15,000 10,000 5,000 20,131 19,069 27,715 Flagstaff Online Community Campuses Yuma
- 6. 1995 2005 2015 2,554 20,131 19,069 27,715 $11,974 $13,841 $10,211 2,821 5,034 State & Tuition Support per Student Enrollment Undergraduate Degrees
- 7. Red Buildings 9 buildings Physical Sciences Chemistry Biological Sciences Educational Annex Adel Mathematics Anthropology Learning Resource Center Engineering & Technology Business Administration 2005 7 buildings Physical Sciences Chemistry Biological Sciences Academic Annex North Heating & Cooling Plant Adel Mathematics SBS West 2010 5 buildings Biological Sciences Physical Sciences Chemistry Wall Aquatic Center Adel Mathematics 2015 4 buildings Biological Sciences Physical Sciences Chemistry Adel Mathematics 2016
- 8. Partnerships Four Forest Restoration Initiative Phoenix Biomedical Campus 1899 Bar & Grill High Country Conference Center American Campus Communities
- 9. Economic Impact NAU’s economic impact in Arizona is approximately $1.845 billion. 61% of NAU graduates reside in Arizona and our alumni circulate $1.65 billion in the Arizona economy each year. Regionally, NAU activity contributes $1.158 billion in Coconino County’s economy and one in every five jobs in this county is a result of NAU’s presence. In its second year of operations (2013–2014), NAU’s programs at the Phoenix Biomedical Campus had an economic impact of $17.5 million.
- 10. Academic Plans & Student Success
- 11. Only at NAU Student = Partner Faculty Environment Active learning Technology STUDENTS Many traditionally aged (18-22) from diverse backgrounds First-generation – 42% But … 1/4 adult learners
- 12. Our Students 3.5 Average Freshman Cohort HS GPA Fall 2014 Flagstaff Community Campuses Online 55% 67% 71% 62% 98% 86% 57% 3% 2% 5% 52% 59% Female AZ Resident Under 21 Over 30
- 13. Academic Programs that Open Doors for Students Historically strong programs Education, forestry, HRM, pre-professional, business New programs serving Arizona’s needs Health professions, STEM, interdisciplinary
- 14. Learning Community 28% Research with Faculty 23% Leadership in Student Organizations 5% Culminating Senior Experience 67% Service Learning 61% Internship or Field Experience 47% Defining Quality: High Impact Practices
- 15. Defining Quality: Faculty Innovations for Learning First Year Learning Initiative Built on active learning, early engagement 80+ certified courses serve 95% of all first-year students Last year prevented 800 “failed” courses ($1.3 million saved costs to students) Global Learning Initiative Every major, every student has discipline-centered global perspective Defining and Assessing Learning Learning goals for each course, each degree program documented (75% of all programs in past 2 years) Learning assessment incorporated into continuous improvement, program review
- 16. “NAU is about undergraduate education, but these students also provide a large motivated research workforce. Much of our international success in pathogen genomics has been driven by undergraduate hard work and devotion. In return, they get a scientific education that is based upon workplace experience in a real life research environment.” – Paul S. Keim, NAU TGen
- 17. Defining Success 70% 60% 50% 40% 30% 20% 10% 0% 53% 60% 6-year Graduation Rate 52.6% 49.1% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 51% 80% 78% 76% 74% 72% 70% 68% 66% 64% 75% 78% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 73% Projected Enterprise Metric 8 Enterprise Metric 7 Freshman Retention Rate 73.6% 51.6% 69.3% 71.6%
- 18. Meeting Arizona Workforce Needs Enterprise Metric 21 Projected 2,972 3,4373,165 Number of Degrees Awarded in High-Demand Fields 2,884 3,090 3,500 3,300 3,100 2,900 2,600 Enterprise Metric 29 1,350 980 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1,600 1,400 1,200 1,000 800 600 400 200 0 Online Degrees 534 918 1,123 745 4,900 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 6,000 4,500 3,000 1,500 0 Number of Bachelor’s Degrees Awarded 3,203 5,034 3,725 4,513 4,500 Enterprise Metric 1 Enterprise Metric 4 Number of Arizona Community College Transfer Students Awarded Bachelor’s Degrees 1,300 2,300 1,035 1,652 1,771 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2,500 2,000 1,500 1,000 500 0 1,575 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
- 19. Projected Enrollment Growth – Total Headcount Master’s Degree in Physician Assistant Studies and Doctor of Physical Therapy Degree started in Fall 2012. 2013 2014 2015 2016 2017 2018 2019Fiscal Years Physician Assistant Physical Therapy Occupational Therapy TOTAL 25 49 73 100 100 100 100 24 51 86 106 116 120 120 25 54 99 120 135 49 100 184 260 315 340 355 Arizona public universities working together to share faculty, facilities, technology, and supplies to increase high quality, affordable healthcare education. Phoenix Biomedical Campus
- 20. Internal Collaboration for Student Success Academic Affairs, Extended Campuses, EMSA all partner on Enrollment Management Committee Academic Affairs (University College), EMSA partner on retention initiatives
- 21. We Are Affordable Accessible Pledge guarantee 4-year tuition guarantee, predictable affordable Community college partnerships 2NAU Summer research programs Concurrent enrollment and 90-30 programs Transfer tools Jacks Planner Expansion of academic pathways
- 22. Strategies: Extended Campuses Addressing Arizona’s workforce needs Student recruitment strategies NAU-Yuma branch campus NAU-Yavapai regional campus Personalized Learning
- 23. Moving Forward Percent Change in Public and Nonpublic High School Graduates, by State, 2008-09 to 2019-20 Top 5 States Arizona California Colorado Nevada Washington Maricopa 11,112 Pima 2,177 Coconino 1,553 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Greater than 15% 5.01% to 15% 0% to 5% -5% to 0.01% -15% to -5.01% Less than -15% 24,970 30,000 25,000 20,000 15,000 10,000 5,000 0 Enterprise Metric 9 Undergraduate Enrollment 16,654 23,569 22,527 29,754 Enterprise Metric 10 Total Enrollment 27,396 22,307 ProjectedProjected 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 27,26326,308 20,639 22,407 25,380 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
- 24. Transfer Students Dedicated transfer recruitment team Expanded relationships with community colleges and 2NAU programs Improved transfer tools and pathways Financial aid strategies for transfer students International Students 72 countries Work to strengthen the academic infrastructure for international students Develop and nurture strategic relationships with universities and organizations based overseas Construction of International Pavilion facility 2,682 2,870 3,205 3,356 3,336 3,347 878813750 829 719 765 2,4692,5232,6062,376 2,151 1,917 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 AZ Transfers All Other Transfers Total International Enrollment 2008 2009 2010 2011 2012 2013 2014 1,400 1,200 1,000 800 600 400 200 0 506 573 866 911 989 1,080 1,246 China Saudi Arabia Kuwait Brazil Germany Top 5 Countries 3,500 3,000 2,500 2,000 1,500 1,000 500 0
- 25. Students from 107 Tribes Top 5 Tribal Affiliations Navajo Tribe Cherokee Nation, OK Hopi Tribe Choctaw Tribe of Oklahoma Pascua Yaqui Tribe First-time Freshman Cohort Headcount – Hispanic/Latino 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1,200 1,000 800 600 400 200 0 NAU Reflects Arizona’s Diversity 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% AZ 2013 Census Hispanic/Latino Asian Native Hawaiian/Oth Pac Island White Black/African American American Indian/Alaska Native Two or More 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 First Time Freshman Cohort: IPEDS Ethnicity
- 27. QA
- 29. Strategic Research Strengths Addressing Issues Important to Arizonans 1. Infectious diseases 2. Native American health 3. Forest restoration 4. Land management Microbiology and bioengineering Health sciences Environmental sciences and sustainability Forest restoration and landscape conservation Astronomy Informatics and big data analytics
- 30. Partnership for Native American Cancer Prevention NIH-funded, directed by Laura Huenneke Collaboration with UA In operation for 12 years $15+ million to NAU in support of research with and for Native Americans The Center for Microbial Genetics and Genomics Directed by Regents Professor Paul Keim (joint appointment with TGen) $60+ million in external funding since 2002 400+ students, staff, and research scientists Research on MRSA, c-dif, valley fever, CRE (kleb) and others Native American Health and Infectious Diseases
- 31. Forest Restoration Land Management The Ecological Restoration Institute Since 2002, $35 million in external funding 300+ students; 200+ partners The Landscape Conservation Initiative Effective rangeland management directed by Tom Sisk Diablo Trust “The science has strengthened our collaborative process, and by co-hosting dozens of NAU classes and interns, we’ve worked together to train the next generation of land stewards.” —JuDy Prosser, Bar T Bar Ranch “NAU’s longstanding relationship with the Diablo Trust provides for a working laboratory where significant natural resource matters are examined and addressed.” —Mandy Metzger, Flying M Ranch
- 32. Partnerships Generating Impact TGen North/TGen Northern Arizona Healthcare–THRIVE Diablo Trust Babbitt Ranch Lowell Observatory Discovery Channel Telescope Naval Observatory U.S. Geological Survey U.S. Forest Service National Park Service Science Foundation Arizona Northern Arizona Center for Entrepreneurship ASU and UA
- 33. Research Expenditures 2014 Highlights Federal government: $17 million State local government: $6 million Institutional funds: $6 million Industry: $850,000 Non-profits: $1million Other: $1million $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Research Development Expenditures (in $1,000s) $26,183 $30,751 $34,978 $43,432 $31,590 $30,516 Enterprise Metric 13
- 34. Technology Transfer 2014 Metrics Invention disclosures: 24 U.S. patents issued: 3 IP income: $32,000 Start-up companies: 1
- 35. Public Service Institute for Tribal Environmental Professionals Civic Service Institute GEAR UP Institute for Human Development Other Native American Cultural Center/Tribal Leadership NAU Earn to Learn: Assets for Independence Northern AZ Consortium of History Teachers Family Violence Institute Projected Expenditures Related to Service and Engagement Activities Enterprise Metric 20 $34,321 $26,878 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 0 $28,794 $30,733 $32,772 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $25,585 THOUSANDS
- 36. Building Future Research Capacity Bioengineering research Ecosystem science Health and healthcare research High performance computing and “big data” research Strategic recruiting
- 37. Building Future Research Capacity New Center for Bioengineering Innovation $1 million W. M. Keck Foundation award Translating research on muscle contraction to improve prosthetic devices New Center for Ecosystem Science and Society (ECOSS) From microbial systems to whole Earth systems $1.3 million in new external funding
- 38. Building Future Research Capacity Translational Health Research Initiative (THRIVE) Partnership with Northern Arizona Healthcare $400,000 Flinn Foundation grants for personalized translational medicine Informatics and Computing Program (ICP) “Big data” research Research-intensive academic unit in CEFNS Integrate big data analytics into interdisciplinary research focused on improving patient outcomes FLINN PROJECT Shi’hoogan PROJECT THRIVE
- 39. QA
- 41. Office of the Governor Office of Strategic Planning and Budgeting Joint Legislative Budget Committee NAU Leadership • President • Cabinet • Strategic Planning and Budget CouncilMaster Plan Every 5 Years Strategic Plan Every 2-3 Years Performance Evaluation Every Year Macro Budget Every Year Task Forces Organized Groups External Stakeholders Faculty Students Staff Standing Committees Strategic Priorities Every Year Arizona Board of Regents Vision 2020 Divisional Plans Every Year Planning Culture
- 42. Financial Highlights FY 2014 Total assets: $1.1 billion Net assets: +$4 million Total revenue sources: $490.3 million Total expenses: $486 million Monthly days cash on hand: 132 Days The FY14 debt ratio: 5.7% (without SPEED), 6.9% (with SPEED) Maximum allowed is 8% Debt capacity is $180 million Debt Capacity estimated at June 30, 2015: $190 million
- 43. Wyoming North Dakota Alaska New Mexico Hawaii Illinois Nebraska North Carolina Mississippi Arkansas Connecticut Maryland Alabama Utah California Georgia New York Kansas West Virginia Iowa Oklahoma Kentucky Minnesota South Dakota Indiana Texas Idaho Louisiana Delaware Tennessee Montana New Jersey Washington Virginia Massachusetts Florida Wisconsin Maine South Carolina Ohio Michigan Oregon Nevada Missouri Rhode Island Vermont Colorado Arizona Pennsylvania New Hampshire $0 $100 $200 $300 $400 $500 $600 $ 700 $136 Arizona Arizona -21%
- 44. Net Tuition/Fee and State Appropriation Revenue INFLATION ADJUSTED GENERAL FUND PER FTE GENERAL FUND and net tuition per fte $7,600 $13,757 $12,614 $12,089 $12,066 $11,331 $11,260 $11,817 $12,199 $6,094 $5,257 $4,804 $3,780 $3,570 $3,573 $3,579 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Educational and General Expenses per FTE Enrollment $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 2009 2010 2011 2012 2013 ABOR Peers Median NAU (Est.)(Est.)
- 45. Tuition, Fee, and State Appropriations per Degree Awarded ABOR Peers – IPEDS FY 2013 UniversityofM aine TheUniversityofAlabam a UniversityofAkron M ain Cam pus Northern IllinoisUniversity BowlingGreen StateUniversity UniversityofNevada ~ LasVegas UniversityofNorth Carolina atGreensboro W estern M ichigan UniversityMed ianKentStateUniversity~ Kent Southern IllinoisUniversity~ Carbondale Georgia StateUniversity O hioUniversity~ M ain Cam pus N orthern Arizona University W ichita StateUniversity GeorgeM ason University O ld D om inion University $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 0 NAU PER DEGREE $57,732 $65,741
- 46. Investments Personnel Over 60% of university expenditures Average salaries from market median $29.2 million to reach market Classified Staff Service Professionals Faculty 0% -2% -4% -6% -8% -10% -12% -14% -16% Fall 2012 Fall 2013 Fall 2014 -12.8% -9.9% -10.4%
- 47. Tuition Differentiation UNDERGRADUATE GRADUATE Flagstaff $9,165 Extended Campuses $8,554 Yuma $8,554 Flagstaff Pledge $9,989 Extended Campuses $7,032 Yavapai $5,345 Yuma $6,902 Personalized Learning $5,000 Percent of all undergraduates on Pledge = 75% Resident Tuition + Fees Starting Fall 2014
- 48. NR Grad 1% 50% 40% RES UG NR UG RES Grad 9% FY 2015 Online 8% Yuma 1% Community Campuses 6% Flagstaff 85% FY 2015 Flagstaff Enrollment Driving Tuition Revenue FY 2015 Est. Tuition Revenue by Residency by Academic Level FY 2015 Est. Tuition Revenue by Campus $250,000 $200,000 $150,000 $100,000 $50,000 0 $250,000 $200,000 $150,000 $100,000 $50,000 2011 2012 2013 2014 2015 Fiscal Year 2011 2012 2013 2014 2015 Fiscal Year RES Grad RES UG NR Grad NR UG Online Statewide Yuma FlagstaffTHOUSANDSTHOUSANDS
- 49. Projected Revenue Sources Other 12% Auxiliary Revenue 11% Gov’t Grants Contracts Fin Aid 15% 40% Tuition and Fees 22% Total Revenue: $519M Enrollment: 27,715 FY 2015 State General Fund Other 12% Auxiliary Revenue 10% Gov’t Grants Contracts Fin Aid 16% 42% Tuition and Fees 20% FY 2020 State General Fund Total Revenue: $610M Enrollment: 32,284 Total Revenue: $400M Enrollment: 21,352 State General Fund Auxiliary Revenue 9% Gov’t Grants Contracts Fin Aid 14% 25% Other 12% 40% FY 2008 Tuition and Fees
- 50. Budget Planning Scenarios for 2020 Goals Assumptions Enrollment growth: Growth to 32,284 Tuition rates: Commitment to Pledge Maintaining tuition differentiation State appropriation: Performance funding FY17 to FY20 Personalized Learning growth $9 million in FY20 Continued investments in personnel, technology, programs and facilities Continued focus on efficiencies Outcomes Net position in FY20: + $5 million Total revenue: $610 million Total expenditures: $605 million Debt service: 4.5% of expenditures Days cash on hand Target 120-130 Days
- 51. Projected Debt Service Credit Ratings: A1 (Moody’s) A+ (SP) Stable outlook Debt Ratio: 5.7% (without SPEED) 6.9% (with SPEED) 8% cap Projected Debt Service Debt Capacity Projection Fiscal Year (Without SPEED) 2015 $190,000,000 2016 $215,000,000 2020 $340,000,000
- 52. 25 28 96A 30 55 27 96B 24 59 16 46 58 37A 3 88 1 30A 58 17 37 26 35 18 52 86 96C 43 42 90 47A 2 54 59 14 15 29 44 38 31 39 45 21 40 5 9 56 4 2019 48 59 22 23 6 59 3A 58A 8 92 10 12 91 33 30B 11 33A 30C 27A 13A 13 50B 50 50 50B 16A 21B 57 50B 50B 50 50B 50 49 54 32 23A 54B 47 18A 50B 5959 5959 55 30D 36 50 50 60 7A 89 L10 P Science Health Building North Campus Athletic Recreation Center Student Academic Services STRATEGIC PROJECTS MAP FiscalYear 2014-2015 Under Construction New Construction Renovation Deferred Maintenance Other NAU Facilities NORTHERN ARIZONA UNIVERSITY 73 25 77 28 96A 30 55 96B 24 62 59 68 46 37A 69 30A 81 37 26 35 6370 82 65 64 52 86 66 96C 43 42 90 61 47A 67 54 59 14 51 80 72 76 98C 98D 29 44 38 31 39 53 45 40 75 75 56 79 48 59 22 23 59 92 83 33 98F 30B 95 95 33A 30C 27A 50B 50 50 95 95 50B 98B 77A 95 98A 21B 71 71 71 71 71 71 50B 50B 50 80B 50B 50 49 54 32 96 80 97 23A 54B 47 18A 74 80 8077A 77A 67 82B 77A 50B 5959 5959 55 30D 84 78 75 75 50 50 53 60 89 85 0 250 500 750 1,000125 Feet North Campus Athletic Recreation Center Student Academic Services D O North Campus South Campus Facilities Under Construction New Construction Renovation Deferred Maintenance Other NAU Facilities
- 53. Meeting Space Needs North Campus Athletics and Recreation Complex Science and Health Student and Academic Support Building Future needs: Research Infrastructure Phase II
- 54. NAU Foundation “Only at NAU” Campaign Started in 2009 Public phase began in 2013 At $83 million with target of $100 million foundation assets $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 0 $63,381 $92,480 $95,337 $109,075 $136,248 2010 2011 2012 2013 2014 Fiscal Year 5-year Since Inception NAU Foundation 15.2% 7.9% Moderate Growth Composite Index 13.6% 8.0% Annualized Rate of Return THOUSANDS
- 55. QA
- 56. Our Partners John Coe, Principal, Marshall Elementary Magnet School Leah Bornstein, President, Coconino Community College Jeffrey Hall, Director, Lowell Observatory David Engelthaler, Director of Programs, TGen North
- 57. 23,569 2020 Goals 16,654 5,034 60% 50% 6-year graduation $31.6M $26.1M 1,350 $43.4M 4,900 Comm college to bachelor’s Comm college transfers Freshman retention Research expenditures Annual bachelor’s 78% Online degrees 51.6% 73.6% 1,123 1,771 2,469 1,917 1,035 534 3,151 71.5% Undergraduate enrollment 3,800 2,300 25,531