1

http://mubudget.missouri.edu/

Budget Allocation Advisory Council

Finance OverviewFY 2016

Financial Reports & Background

Public Financial Reports

• Changes In Net Position

• Statement of Revenues, Expenses and Changes in Net Position – by Fund

http://www.umsystem.edu/ums/fa/controller/financial-reports

2

Budget Cycle Overview

July 1st June 30th December

Long Range Planning

Annual BudgetDevelopment

Budget Management and Reporting

Operating FundTargeted Tuition & Student Fees Restricted AppropriationsGrants & ContractsGifts, Endowment & Investment IncomeEnterprise Operations

Total Revenue

$618M121M

21M165M

75M1,283M

$2,284M

27.1%5.3%0.9%7.2%3.3%

56.2%

100%

Fiscal Year 2016 Budget

Funding Sources

“Enterprise” Operations

Hospitals & ClinicsUniversity PhysiciansAthleticsUniversity StoresResidential LifeCampus DiningResearch ReactorVeterinary MedicineAgricultureParkingKOMUOffice of Research/Patent & RoyaltyOther

$787M181M

68M54M49M29M16M15M10M

8M8M4M

54M

$1,283M

61.3%14.1%

5.3%4.2%3.8%2.3%1.2%1.2%0.8%0.6%0.6%0.3%4.2%

100%

Fiscal Year 2016 Budget

General Operating SourcesTotal: $617M

Operating Fund

• State Appropriations $220M

• Tuition $362M

• Indirect Cost $35M

Fiscal Year 2016 Budget

19901995

20002005

20102015

2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

58%

36%

6%

INDIRECT COST

27%

70%

3 %

Change in General Operating Funding Sources

TUITION

STATE SUPPORT

Drivers on funding from State

– State tax revenues– Historical patterns– Performance funding model – Strategic planning– Other factors

8

State Support to Higher EducationFY 2015 National Comparison*

Appropriation per Capita Ranking

*Information obtained from the Grapevine Report published by Illinois State University

44

7

18

2110

30

22

6

20

State Appropriations for OperationsFY 2001 – FY 2015

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015175,000,000

180,000,000

185,000,000

190,000,000

195,000,000

200,000,000

205,000,000

210,000,000

215,000,000

220,000,000

225,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Head Count State Appropriations FY Based CPI

Head Count

CPI

State Appropriations

Revenue DriversFY 2001 – FY 2015

Drivers on Tuition and fee revenue

– State expectations – SB 389– Competition– Access – Pool of qualified students

12

SENATE BILL NO. 389

94TH GENERAL ASSEMBLY2007

173.1000. The provisions of sections 173.1000 to 173.1006 shall be 2 known and may be cited as the "Higher Education Student Funding 3 Act".

173.1003. 1. Beginning with the 2008-2009 academic year, each 2 approved public institution, as such term is defined in section 173.1102, 3 shall submit its percentage change in the amount of tuition from the 4 current academic year compared to the upcoming academic year to the 5 coordinating board for higher education by July first preceding such 6 academic year. 7 2. For institutions whose tuition is greater than the average 8 tuition, the percentage change in tuition shall not exceed the 9 percentage change of the consumer price index or zero, whichever is10 greater.

13

Consumer Price Index

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

CPI market basket major groups and examples:

• FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)

• HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) • APPAREL (men's shirts and sweaters, women's dresses, jewelry) • TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) • MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and

eye care, hospital services) • RECREATION (televisions, toys, pets and pet products, sports equipment, admissions); • EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer

software and accessories); • OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal

services, funeral expenses). 14

Tuition & Fee Comparison2014 – 2015

Institution

AAU PublicAAU Public & PrivateSEC PublicBig Ten PublicBig XII Public

University of Missouri-Columbia

Average

$11,465$26,510

$9,268$11,814$8,687

$9,433

Lowest

$6,313$6,313$6,313$8,070

$6,960

Highest

$17,772$51,008$11,876$17,502

$9,798

Combined Tuition & Fees Resident Undergraduate

Source: Association of American Universities Data Exchange (AAUDE) Annual Academic Year Tuition and Required Fees 2014-15 Composite Report

State Appropriations plus Net Tuition & Fees Compared to Peers

Where do the resources go?

Operating Fund

• Salaries and Wages 61.8%

• Benefits 19.0%

• Operating Expenses 19.2%

Fiscal Year 2016 Budget

Clearly we can’t do everything

• Strategic planning process brings focus• Progress is being evaluated• More refinement of the focus takes

place

18

Strategic Operating Plan University of Missouri

http://strategicoperatingplan.missouri.edu/19

20

Budget Allocation Advisory Council

Finance OverviewFY 2016