Presentation of Major Operating Budget Components for the ... · instituted reductions in the...

18
LEHIGH University Financial Planning Report With 2013 - 2014 Budget

Transcript of Presentation of Major Operating Budget Components for the ... · instituted reductions in the...

Page 1: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

LEHIGH University

Financial Planning Report With

2013 - 2014 Budget

Page 2: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

LEHIGH UNIVERSITY

Financial Planning Report With

2013-14 Budget

------------

TABLE OF CONTENTS

PAGE

I. COMMENTARY 1 - 9

II.

COMPOSITE BUDGET

10

III.

REVENUE AND EXPENDITURE DISTRIBUTION

11 - 12

IV.

BUDGET SUMMARIES

a. COMPOSITE BUDGET 13

b. AUXILIARY ENTERPRISES 14

c. FINANCIAL AID 15

d. CAPITAL PROJECTS 15

V. RELATED ORGANIZATIONS 16

Page 3: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

May 2013 To the Board of Trustees Lehigh University This document presents an executive summary and detailed analysis of the operating budget, including an overview, historical data and trends, future projections, and summary schedules outlining both the operating and capital budgets for the coming fiscal year. We have reviewed and modeled the specific assumptions for the university’s operating budget, with a primary focus on the results anticipated for the fiscal year July 1, 2013 to June 30, 2014 (FY13-14).

EXECUTIVE SUMMARY Lehigh continues to build on the extensive work done in the last few years to ensure the integration of Lehigh’s annual financial planning with the University’s long range strategic planning. The on-campus resource planning discussions continue to focus on reallocation opportunities, and alignment of unit plans and activities with the priorities of the University’s Strategic Plan. These discussions then inform the University’s plans for multi-year investment in key areas, in order to ensure that units continue to make progress toward their specific goals, while keeping progress on the Strategic Plan on track. As these planning initiatives unfold, they drive the identification of institution-wide multi-year parameters, as described further below. Our plan reflects the expectation that Lehigh will continue to experience the financial realities facing many higher education institutions still recovering from the economic downturn of 2008-2009, with revenue sources continuing to be challenged and thus expenditures quite constrained, in order to ensure a balanced budget for the near and longer-term projections. As a result, our projections are conservative throughout the plan, with most areas of the University again experiencing flat expense budgets. Any additional resources are directed to investments that are necessary in order to advance our mission-critical strategic efforts in key areas. The FY13-14 operating budget reflects the inclusion of the major proposed parameters approved in February by the Executive Committee. These parameters are predicated on the need for Lehigh to focus on access and affordability for students who enroll, both through constrained growth in tuition, as well as in enhanced financial aid programs. In addition, our planning efforts include identifying and planning for the next eight to ten years of capital investments in support of the strategic priorities of Lehigh as identified through the Campus Master Planning process, and the planning for future fundraising initiatives. Overall, the FY13-14 projections are balanced, with the operating budget at $443,492,840, a 3.9% growth over the prior year.

1

Page 4: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

ECONOMIC ENVIRONMENT The economic environment continues to challenge the revenue for many US colleges. A recently published Moody’s rating agency survey reported that more US colleges are facing stagnating enrollment and tuition revenue with 18% of private universities and 15% of public universities projecting revenue declines in FY12-13. We have not experienced the declines reported by these 18% of private universities, but Lehigh’s revenue growth has been modest. Our conservative estimate is that over the next few years Lehigh’s net tuition, our biggest revenue source, will continue to mirror our recent increases of between 2% to 4%. The projected slow recovery in the United States will continue to be a major issue in the affordability of a college education. Lehigh continues to recognize financial aid’s critical role in keeping a Lehigh education affordable regardless of the student’s/family’s resources. While other schools have had to scale back on financial aid in areas such as no-loans programs, we plan no major changes to our financial aid policies for the FY13-14 budget. Our pricing strategy, including the use of financial aid, contributes to the high ranking of a Lehigh degree in return on investment. Payscale.com, who publishes data on salaries and return on investment of graduates, featured an article in the Wall Street Journal on their 2010 return on a college investment survey that ranked Lehigh 12th, a ranking Lehigh continued to maintain in the 2011 and 2012 reports. Additionally, Kiplinger’s ranks Lehigh 25th in their Best Values in Private Colleges, incorporating parameters such as financial aid and student debt, while US News and World Report category of “Great Schools, Great Prices.” ranks Lehigh 27th. In the near term we will continue to scrutinize the academic planning challenges and financial opportunities stemming from the impact of new forms of online education such as MOOC’s and other coming generations of online learning environment. CAMPUS PLANNING We continue to enhance our budget planning processes so that we are aligning our institutional resources with our highest priority needs, including moving forward with the campus master plan, multi-year hiring plans, and a variety of internal planning processes. The Strategic Plan Implementation Group (SPIG), created to ensure the Strategic Plan’s implementation across the campus, is leading our efforts to bring the plan to fruition, and to enhance our expectations for the future. We plan on continuing funding through set asides or reallocations for strategic investments in areas of the plan including Globalization, Southside Community engagement and investing in Faculty and Staff, as well as allocating discretionary funds to the Provost area for highest priority needs throughout the year. Additionally, we have and will continue to take opportunities to jump start specific plan strategic initiatives in anticipation of fundraising dollars being received to permanently support those activities. Our efforts also continue on the Campus Master Plan that began in the spring of 2011. While the plan is intended to represent an implementation period of approximately eight to ten years, it is tied to the development of key strategic initiatives and therefore may be

2

Page 5: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

realized over a shorter or longer period based on evolving priorities. The Space Planning Steering Committee, composed of the Deans of the four colleges, Provost, Vice Provosts, Vice Presidents, and Associate Vice Provosts provided input as to areas of focus in the Campus Master Plan scope, and insights into how the campus and its facilities are meeting institutional needs. The Guiding Principles, listed below, were developed through these collaborative efforts.

• Preserve Lehigh’s exceptional architectural character and park-like setting as the three campuses evolve

• Make optimal use of existing resources and strategic use of new development • Create spaces to foster campus community and interdisciplinary interaction • Improve research space in a manner that enriches the holistic experience for graduate

and undergraduate students • Plan and build in an environmentally sustainable manner • Leverage the presence of the University to better integrate the campus and South

Bethlehem • Improve access and walkability among and within the three campuses

Moving forward with the collaborative efforts with groups such as the space planning committee and campus wide town hall meetings and electronic venues, we plan on taking the initial steps to prioritize the capital projects and developing funding scenarios to support those capital endeavors. Also, last year, the Donald B. and Dorothy L. Stabler Foundation donated 755 acres in Upper Saucon Township, one of the most generous gifts in Lehigh history. As a result we established a new corporate entity, LU Properties LLC, to manage the finances, maintenance and any sales or future development of the property. The staff of LU properties is currently working with the Campus Planning and Operations Committee in developing a comprehensive strategic plan for use of the property. OVERALL FINANCIAL ANALYSIS PICTURE The University’s FY13-14 operating budget serves as its financial plan, developed on a basis that is separate but related to the method of preparing the audited financial statements. The key difference between the budget and the audited financial statements is that the budget focuses on cash, while the audited financial statements consider cash as well as accrued expenses and revenues. The annual operating budget reflects the budget allocation decisions necessary to accomplish University goals and ensure physical and financial resources are appropriately preserved for the future, and that revenues and expenses remain in balance. Similar to many private institutions of higher education, Lehigh University’s operating budget includes multiple fund groups, each with its own particular set of rules as how the funds can be utilized. For example, expendable restricted funds are restricted to the purpose by the provider (research activity, restricted gifts, etc.) while unrestricted funds can be used for any activities consistent with the overall purpose of the University. In addition there are two other fund groups included in the operating budget, designated and auxiliary services, both of which are self-balancing activities, with a required balance between revenue and expense.

3

Page 6: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

With the economic environment continuing to strain restricted funds in areas such as investment growth and fund raising the University continues to feel the pressures placed on unrestricted sources such as undergraduate net tuition. While we have effectively deployed restricted funds (gifts, endowment earnings for financial aid, etc.) the expectation is that for the next two to three years, these restricted sources will continue to show minimal growth, resulting in continued pressures on unrestricted funding sources. The composition of the $443 million budget for FY13-14 consists of unrestricted funds of $283 million (64% of the operating budget), restricted funds of $94 million (21% of the operating budget), auxiliary services of $45 million (10% of the operating budget), and designated funds of $21 million (5% of the operating budget). HIGHLIGHTS OF THE FINANCIAL PLAN:

• Strategic Plan Funding Multi-year budget projections are being used as a basis for ongoing planning. We continue to integrate the plan priorities with ongoing activities on campus while taking advantage of opportunities to reallocate / redistribute funds based on analysis undertaken through the Strategic Plan Implementation work. Early years of the plan assume more reallocation while later years build toward an environment with additional resources provided by fundraising.

• 2013-14 Operating Budget The FY13-14 budget is balanced based on inclusion of the major proposed parameters approved by the Executive Committee in February. The operating budget revenues total $443,492,840; expenditures total $442,108,840; with a projected unrestricted net of $1,384,000. Projected budgeted revenues are expected to grow 3.9% over the FY12-13 budget. The modest growth reflects a minimal change in tuition and fees, gifts for operations, and endowment spending generated by additional gifts. The major budget operating expense components include $313,086,150 for educational and general expenses, $83,458,320 for financial aid, and $45,564,370 for auxiliary operations. In addition, the separate capital budget, which reflects capital expenditures rather than operating items, totals $40,894,980.

• General Expense Increases The development of the FY13-14 operating budget reflects a flat budget for general expenditures with incremental dollars going only to a few critical investments in order to advance strategic efforts in key areas. Thus, individual units have had to reallocate their existing resources toward higher-priority areas, in order to cover any changes in expense projections. • Endowment Spending

An important element of the university’s revenues is the endowment payout resulting from the endowment spending formula. Because of the significant decline in the financial markets in 2008-2009 the university temporarily “suspended the floor” of the spending rate calculation and

4

Page 7: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13 we re-established the floor and implemented a 0% increase. For FY13-14 the budget includes a 0% change in the spending per share rate, with continued conservative estimates in future fiscal years being considered as market conditions dictate. Therefore, any expense increases supported through endowment distributions will have to be reallocated to other funding sources.

• Capital Plans We are continuing to subject all capital projects to close examination, with approval provided only to those that have a dedicated funding source, or are required for the arrival of new faculty or staff. With the approval of the Campus Master Plan in March 2012, we are currently reviewing these recommendations which will be incorporated into the multi-year capital budget as projects are identified and timelines established. • Debt The University continues to review its debt portfolio to ensure reasonable rates and a well-diversified portfolio. During FY12-13 Lehigh converted its 2004 Series Variable Rate Demand Notes to a 10 year direct placement at a competitive interest rate. In FY13-14, Lehigh will consider options for its two Standby Bond Purchase agreements which will come due.

BUDGETARY PRIORITIES

• Expense Categories • Compensation

Continued investment in high performing personnel remains a priority. Therefore, we continue our efforts to support employees through 100% merit-based salary increases for FY13-14 while also partnering with employees on benefits costs. In constructing the FY13-14 compensation budget we paid careful attention to the following:

• Continuation of the staff position review process in many units to determine when each opening occurs whether lower priority work can be stopped so that positions can be eliminated or reduced, with the savings dedicated to higher priority needs

• Merit increase setting based on analysis of industry comparisons/projections, turnover/retention statistics, experienced and anticipated inflation and faculty and staff market equity issues

• Implementing recommendations as result of the benefits allocation review process, with a goal of any changes staying within the existing employee benefits expenditure level for the University

The salary increase allocation for faculty and staff is 3.0% for the annual merit pool process. In addition to this merit allocation, we have identified an additional nominal amount for faculty and staff market adjustments.

5

Page 8: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

• Financial Aid - Undergraduate We plan to increase the undergraduate institutional financial aid support, including both unrestricted and restricted funds, by 3.6% for FY13-14 which reflects no major changes to the current financial aid programs. This growth includes the increase to aid for all returning students in proportion to the increased costs of attendance, as well as any adjustments to continuing students’ financial aid needs resulting from individual needs analysis. It also provides funding for the projected needs of the entering class. In addition to this institutional growth in the financial aid budget, we continue to maintain a one-time reserve to guard against any unforeseen temporary increases to financial aid need or drop in enrollment, as a result of the economic environment.

• Facilities Operations and Maintenance Overall we have reduced the facility operations budget by a net total of $1 million. Major highlights include:

• Utilities expense • The price structure of electricity subsequent to

deregulation of electric rates has stabilized and we have used open market purchasing strategies resulting in utility savings that are built into the FY13-14 budget. We continue to implement usage reduction strategies across the campus both for financial and environmental reasons

• Sustainability • The Sustainability Plan has a number of initiatives

that require one-time or ongoing funding over the next few years. The plan calls for investment, both operating and capital, in areas such as water use, energy & climate, waste management and built environment/land use

• Building operations and maintenance • We will drive any increases in future years’

maintenance investments by the campus master plan investments, tied to strategic institutional priorities

• Other Expenses We will fund high priority specific investments such as:

• Bridge funding support for new faculty hires to eventually replace currently planned retirements anticipated over the next few years

• Additional funds to support library journal costs and disk storage as part of the digital library initiatives

• Additional staffing needs in the President’s Office, International Affairs, and Communications and Public Affairs

6

Page 9: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

• Incremental support for the VP for International Affairs and for Athletics

• Discretionary funds made available to the Provost for highest priority academic needs

• Revenue Categories • Tuition / Fees and Enrollment

Tuition continues to be the single largest source of income for the University. Lehigh’s per student undergraduate tuition is currently below the average of our comparison institutions and is projected to continue to remain below the comparison group in FY13-14 as well. Significant tuition and enrollment information is as follows:

• Tuition increase of 3.1%; one of the lowest increases in 40 years (2.9% in FY09-10; 3% in FY10-11; 3% in FY11-12; 3.1% in FY12-13; 3.1% in FY13-14)

• No increase in the technology fee • Room increase of 2.9% and board increase of 2.9% • Total cost of attendance $55,080; increase of 3.0% • Undergraduate fall/spring enrollment is budgeted

at 4,620 FTE with a first year class target of 1,200 and fall semester transfers at 65. Given the financial aid investment described above we anticipate a fall/spring undergraduate tuition discount of 33.8%.

• Graduate enrollments are projected to maintain the levels we have experienced in recent years

• Investment Return The FY13-14 plans assume no increase to the endowment spending rate per share, in order to protect the long-term value of endowment principal. We are anticipating an increase in gifts to endowment, which will help offset expense increases to some extent. Finally, we are projecting that short term investment income will show little increase due to low interest rates available in the market.

• Gifts We project that the income from non-capital gifts available for general expenditures will increase moderately for the FY13-14 fiscal year. Major considerations in developing the gift projections include:

• Continued economic pressures on donors • Conservative estimates on the unrestricted Annual

Fund performance and gifts for scholarships based on recent experience

• Moderate impact from the incremental investment to support the new fundraising campaign, as these results will be more visible in later years

7

Page 10: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

• Auxiliary Enterprises The Auxiliary Enterprises will continue to maintain their own financial viability while also increasing their contribution to the unrestricted general fund. The major sources of auxiliary income are derived from residential facilities and dining services, which will return $1,184,220 to the general operating budget, as well as continue to self-fund maintenance of facilities and equipment. The combined Room and Board revenue increase for FY13-14 is 2.9%.

• Research Research continues to be characterized by very tight funding. Although performance at earning federal grant support has been good we anticipate research income for FY13-14 to be consistent with current levels recognizing flat federal funding and the competitive environment. The projections are based on the uncertain federal budget outlook as well as continuation of the lower levels of state funding for research experienced in recent years.

SUMMARY We hereby present the FY13-14 fiscal year budget to the Board of Trustees. The overall budget growth is 3.9%. As discussed earlier in this document, incremental funding for expenditures went to only the highest priority items. This resulted in a modest growth in expense budgets for compensation, financial aid, and a few departmental budgets. However, those expense increases are being partially offset by cost reductions in general expenditures. We also project revenue increases to be modest as the uncertain economy continues to impact the university’s major revenue sources. The comprehensive university operating budget, including Educational and General, Financial Aid, and Auxiliary Enterprises, totals $443,492,840 in revenues and appropriations. Expenditures and appropriations total $442,108,840. The amount of $1,384,000, as required by University policy, is projected as the unrestricted unappropriated balance. The capital budget is the final component of the composite budget. This budget identifies capital expenditure items, rather than operating items, for the coming fiscal year. We project a total capital budget of $40,894,980. Current fund transfers of $6,995,330 and gift and other capital budget sources in the amount of $33,899,650 will provide the necessary funds for this total budget. In addition to the University operating budget the related organizations of the University project activity totaling $9,412,000. The related organizations are the Ben Franklin Partners of Northeastern PA (BFTPNE), the Manufacturers Resource Center (MRC), and the Northampton County Revolving Loan Fund (RLF).

8

Page 11: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

We hope that this overview has given you a sense of the size and scope of the FY13-14 budget. On the following pages, we provide additional budget information for an operating budget totaling $443 million and a capital budget totaling $41 million.

Respectfully submitted,

Margaret F. Plympton

Vice President for Finance and Administration

Stephen J. Guttman Director of Budget

9

Page 12: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

2 0 1 3 - 1 4

C O M P O S I T E B U D G E T

WITH 2012-13 COMPARISON

2013-14 2012-13

REVENUES EXPENDITURES REVENUES EXPENDITURES

UNRESTRICTED

Educational and General 274,973,630 205,965,260 266,223,400 199,522,700 Financial Aid 3,500,000 55,880,960 3,500,000 53,779,350 Auxiliary Enterprises 45,564,370 45,564,370 44,581,100 44,581,100

Subtotal 324,038,000 307,410,590 314,304,500 297,883,150

Appropriations 4,120,410 19,363,820 3,265,030 18,342,380

TOTAL - UNRESTRICTED 328,158,410 326,774,410 317,569,530 316,225,530

Unappropriated Balance 1,384,000 1,344,000

DESIGNATED

Educational and General 19,186,460 19,186,460 19,385,730 19,385,730 Financial Aid 2,212,260 2,212,260 1,499,200 1,499,200

TOTAL - DESIGNATED 21,398,720 21,398,720 20,884,930 20,884,930

RESTRICTED

Educational and General 68,570,610 68,570,610 62,661,350 62,661,350 Financial Aid 25,365,100 25,365,100 25,687,880 25,687,880

TOTAL - RESTRICTED 93,935,710 93,935,710 88,349,230 88,349,230

COMBINED TOTAL UNRESTRICTED, DESIGNATED, AND RESTRICTED

Educational and General 362,730,700 293,722,330 348,270,480 281,569,780 Financial Aid 31,077,360 83,458,320 30,687,080 80,966,430 Auxiliary Enterprises 45,564,370 45,564,370 44,581,100 44,581,100

Subtotal 439,372,430 422,745,020 423,538,660 407,117,310

Appropriations 4,120,410 19,363,820 3,265,030 18,342,380

TOTAL - UNRESTRICTED, DESIGNATED, AND RESTRICTED 443,492,840 442,108,840 426,803,690 425,459,690

Unappropriated Balance 1,384,000 1,344,000

L E H I G H U N I V E R S I T Y

10

Page 13: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

LEHIGH UNIVERSITY Sources of Operating Revenue

2013 - 14

Tuition & Fees 54.0%

Room & Board 7.9%

Other Sources 2.4%

Endowment Earnings 13.7%

Gifts 4.1%

Research Grants & Contracts 8.4%

Indirect Cost Recovery 2.0%

Financial Aid

Government 1.0%

Other 4.0%

$443,492,840

Auxiliary Enterprises

Other Investment Returns

2.5%

11

Page 14: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

LEHIGH UNIVERSITY Operating Expenditure Distribution

2013 - 14

Salary & Wages 35.4%

Employee Benefits 11.1%

General Expenses

26.4%

Facilities - Operations

and Maintenance

8.2%

Financial Aid 18.9%

$442,108,840 By Expense Areas

Note: Facilities Operations and Maintenance Salaries & EB's are included in the Salary & Wage and EB categories

12

Page 15: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

L E H I G H U N I V E R S I T Y

B U D G E T S U M M A R I E S U N R E S T R I C T E D A N D R E S T R I C T E D C O M P O S I T E B U D G E T

2013-14 2012-13

% of % of Amount Total Amount Total

REVENUE AND APPROPRIATIONS

Tuition and Fees 239,628,470 54.0 231,314,190 54.2 Auxiliary - Room and Board 34,915,250 7.9 33,643,730 7.9 Auxiliary - Other Sources 10,649,120 2.4 10,937,370 2.6 Endowment Earnings 60,659,690 13.7 59,575,620 13.9 Other Investment Returns 11,000,000 2.5 10,900,000 2.6 Gifts 18,100,000 4.1 16,100,000 3.8 Grants and Contracts 37,255,000 8.4 33,804,370 7.9 Financial Aid - Government 4,517,650 1.0 4,649,360 1.1 Indirect Cost Recovery 9,000,000 2.0 8,067,330 1.9 Other 13,647,250 3.1 14,546,690 3.4 Appropriations 4,120,410 0.9 3,265,030 0.7

TOTAL-REVENUE AND APPROPRIATIONS 443,492,840 100.0 426,803,690 100.0

EXPENDITURES AND APPROPRIATIONS

Salaries and Wages 156,475,620 35.4 150,010,290 35.3 Employee Benefits 49,011,360 11.1 47,162,970 11.1

Total Compensation 205,486,980 46.5 197,173,260 46.4

General Expenses 102,924,610 23.2 96,474,120 22.7 Contract Food Operations 14,056,690 3.2 13,660,510 3.2 Financial Aid 83,458,320 18.9 80,966,430 19.0 Facilities - Operations and Maintenance 36,182,240 8.2 37,185,370 8.7

TOTAL - EXPENDITURES AND APPROPRIATIONS 442,108,840 100.0 425,459,690 100.0

Unappropriated Balance 1,384,000 1,344,000

TOTAL 443,492,840 426,803,690

Page 16: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

A U X I L I A R Y E N T E R P R I S E S B U D G E T UNRESTRICTED

2013-14 2012-13

% of % of Amount Total Amount Total

REVENUE

Room and Board

Residence Services* 23,731,490 52.1 22,833,550 51.2 Food Services 11,183,760 24.5 10,810,180 24.2

Total - Room and Board 34,915,250 76.6 33,643,730 75.4

Other Sources

Residence Services 649,200 1.4 649,200 1.5 Residence Halls Association 143,500 0.3 143,500 0.3 Food Service** 4,544,160 10.0 4,491,100 10.1 Bookstore** 4,633,530 10.2 4,980,710 11.2 Child Care Center 604,540 1.3 598,760 1.3 Debit Card Services 74,190 0.2 74,100 0.2

Total - Other Sources 10,649,120 23.4 10,937,370 24.6

TOTAL - REVENUE 45,564,370 100.0 44,581,100 100.0

EXPENDITURES

Residence Services* 24,380,690 53.5 23,482,750 52.7 Residence Halls Association 143,500 0.3 143,500 0.3 Food Service** 15,727,920 34.5 15,301,280 34.3 Bookstore** 4,633,530 10.2 4,980,710 11.2 Child Care Center 604,540 1.3 598,760 1.3 Debit Card Services 74,190 0.2 74,100 0.2

TOTAL - EXPENDITURES 45,564,370 100.0 44,581,100 100.0

* Residence Services includes Residence Halls, Fraternities and Sororities** Food Services is operated by Sodexo and Bookstore is operated by Barnes & Noble

14

Page 17: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

F I N A N C I A L A I D B U D G E T

2013-14 2012-13

% of % of Amount Total Amount Total

REVENUE

Endowment Earnings 22,056,940 26.4 21,453,270 26.5 Gifts and Grants 4,502,770 5.4 4,584,450 5.7 Government Support 4,517,650 5.4 4,649,360 5.7 Unrestricted Educational Budget 52,380,960 62.8 50,279,350 62.1

TOTAL - REVENUE 83,458,320 100.0 80,966,430 100.0

EXPENDITURES

Undergraduates

University Sources 68,418,330 82.0 66,067,300 81.6 Government Sources 4,517,650 5.4 4,649,360 5.7

TOTAL - UNDERGRADUATES 72,935,980 87.4 70,716,660 87.3

GRADUATES 10,387,730 12.4 10,107,340 12.5

PRIZES 134,610 0.2 142,430 0.2

TOTAL - EXPENDITURES 83,458,320 100.0 80,966,430 100.0

C A P I T A L P R O J E C T S B U D G E T

2013-14

Amount

SOURCES OF REVENUES

Plant Preservation 8,494,450

General 20,076,530

Gifts 12,324,000

TOTAL - SOURCES 40,894,980

USES

Building Construction and Renovations 35,729,980 Land Improvements 5,165,000

TOTAL - USES 40,894,980

15

Page 18: Presentation of Major Operating Budget Components for the ... · instituted reductions in the spending per share rate of 5% for FY09-10, 3% for FY10-11 and 0.5% for FY11-12. In FY12-13

L E H I G H U N I V E R S I T Y

2 0 1 3 - 1 4

R E L A T E D O R G A N I Z A T I O N S

Restricted

Personnel Expense Total Prior Year

BEN FRANKLIN PARTNERSHIP

REVENUES

Federal and State Grants 5,200,000 5,400,000 Unrestricted Funds; Private Gifts & Grant 1,600,000 1,600,000

TOTAL - REVENUES 6,800,000 7,000,000

EXPENDITURES

Administration and General 730,000 490,000 1,220,000 1,220,000 Projects at Lehigh 100,000 100,000 100,000 Projects with others 2,400,000 2,400,000 2,600,000 Other Programs 1,965,000 1,115,000 3,080,000 3,080,000

TOTAL - BEN FRANKLIN PARTNERSHIP 2,695,000 4,105,000 6,800,000 7,000,000

MANUFACTURERS RESOURCE CENTER

REVENUES

Federal and State Grants 1,478,940 1,350,950 Client Revenue and Unrestricted Funds 945,000 1,110,000 Interest and Investment Income 176,060 182,330

TOTAL - REVENUES 2,600,000 2,643,280

EXPENDITURES

Administration and Programs 1,389,510 1,210,490 2,600,000 2,643,280

TOTAL - MANUFACTURERS RESOURCE CENTER 1,389,510 1,210,490 2,600,000 2,643,280

SMALL BUSINESS DEVELOPMENT CENTER REVOLVING LOAN FUND

REVENUES

Interest and Fees 12,000 18,000

EXPENDITURES

Administration 10,000 2,000 12,000 18,000 Loan Commitments

TOTAL - SBDC REVOLVING LOAN FUND 10,000 2,000 12,000 18,000

16