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Managing the Money

Managing the Money. October 28, 2011 Michelle Quinn Sr. Vice President for Administration University of Northern Colorado. Managing the Money?. We care about the money because we care about the mission. UNC President Kay Norton. Managing the Money! …. Four Key Questions *.

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Managing the Money

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  1. Managing the Money October 28, 2011 Michelle Quinn Sr. Vice President for Administration University of Northern Colorado

  2. Managing the Money? ...

  3. We care about the money because we care about the mission.UNC President Kay Norton

  4. Managing the Money! …

  5. Four Key Questions* • Are we achieving strategic and financial balance? • What financial measures and reporting help us assess our effectiveness in fulfilling our mission? • Are we demonstrating integrity in our financial management? • What is our overall financial health? * Strategic Financial Analysis for Higher Education: KPMG, Prager, Sealy & Co. LLC, Attain

  6. Are we achieving strategic and financial balance? • Making data-informed decisions • Settingrealistic strategic objectives given fiscal constraints • Allocating resources in accordance with mission and priorities (connecting planning and budgeting)

  7. University Finances are Complicated * Students 60%

  8. Fiscal Constraints FY12 UNC = $32.8 M

  9. Strategic and Financial Balance • Enrollment growth • Discounting • Student success and support • Mission-driven, data-informed • “profitability” • Reality of personnel costs • Functions • Instruction • Academic Support • Research • Public Service • Student Services • Institutional Support • Operation & Maintenance of Plant • Auxiliary

  10. What financial measures and reporting help us assess our effectiveness in fulfilling our mission? Basic: • Budget with comparison to actual • Revenue • Expense • Departmental • Natural • Functional • Full cost of programs

  11. Measures based on financial policy • Proportion of revenues related to: • Student instruction and support • Main campus • Other locations • Online • Grants and contracts • Housing, Dining • Retail and events • Percent of revenues invested in innovation • Percent of revenues invested in capital • Level of reserves • Discounting tuition

  12. Are we demonstrating integrity in our financial management? • Reasonable and appropriate control of university assets • Compliance with standards and regulations • Using consistent principles of money management

  13. What is our overall financial health? • The sufficiency of resources to achieve our mission • Adequate flexibility in deploying resources to achieve its mission • Effective management of assets and liabilities (including liquidity) • Operating results (relationship of revenues and expenses)

  14. A little basic accounting, the balance sheet:

  15. A little basic accounting, the income statement: * Assets -- Liabilities = Net Assets

  16. Composite Financial Index (CFI)

  17. Graphic Financial Profile CFI Resource Sufficiency Are net assets (equity) sufficient compared to expenses? Asset Performance & Management Are our returns (operating & non-operating) appropriate compared to our net assets (equity)? Operating Results Do operating results indicate organization’s expenses are in alignment with revenues? Debt Management Are net assets (equity) sufficient compared to long-term debt?

  18. Budgets are only a small piece of managing the money

  19. We care about the money because we care about the mission

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