AUC FY 20 22 Business Planning Financial Projections

AUC FY 20 -22 Business Planning & Financial Projections Annual Meeting Finance Division September 14 th, 2019

Table of Contents 01 Vison, Mission and Values 04 Procurement Services Initiatives 02 Finance Division Team 05 Capital Planning & Management Process 03 • Budget & Finance Initiatives 06 FY 20 -22 Financial Drivers 2

Vision The Finance Division is committed to being an exemplary organization that enables AUC to excel in academics, technology, research, and entrepreneurship. The division will strive to be a global leader in delivering expertise in finance and in pursuing innovation, institutional productivity and sustainability. Mission Our mission is to provide university partners and stakeholders with the tools and resources needed to be wellinformed leaders and effective decision makers. We provide data, information, analysis, knowledge and methods for our leaders to anticipate and respond effectively to the challenges facing the university. Values • Stewards of financial resources • Excellence • Serve & Support • Integrity • Collaboration & Communication • Innovation • Trust & Respect 3

Finance Division Team Gordon Handke VP for Finance & CFO Amir Habib Chief Budget & Financial Planning Officer • Develop annual and multi-year University budgets • Monitor and report the budget throughout the fiscal year Ibrahim Yacoub Executive Director, Procurement Services Mina Stefanos Director, Capital Planning Management Marwa Azab Executive Assistant Mostafa A. Latif University Financial Controller • Fiscal integrity of AUC • Oversee the capital • Procuring AUC’s planning & management and its assets requirements at the best at AUC • Effective dynamic internal value in an agile and control structure • Preparing, assessing compliant manner evaluating and controlling • Integrity of the university’s capital project budgets financial accounting and reporting system Management of $600 M Endowment Fund • Passive Investments 91% • Active Investments 9% • Annual allocation to the operating budget 3

Budget & Finance Initiatives • Enhance monthly budget monitoring – September 2019 • Meaning behind the numbers; explanation of variances. • Office of Budget & Financial Planning will provide standardized reports and assistance. • Budget Planning and Consolidation module (SAP) – December 2019 • Automating budget consolidation • Budget staff focus on value added data analysis • High level “what if” scenario planning 4

Budget & Finance Initiatives • Reviewing new budget methodologies – during FY 20 and FY 21 o Shifting from incremental to incentivized / decentralized budget approach • Workflow automation within Finance operations – January 2020 • Updating of Budget policies and procedures – October, 2019 • Updating of Finance policies and procedures – December, 2019 5

Procurement Services Initiatives • SAP Ariba Procurement module – February 2020 • Sourcing documents (RFI, RFQ, RFP) • PR to PO tracking • Contract management • Electronic signatures • Supplier management • Direct Purchase Order – goods & services $501 to $2, 000 – October 2019 • Updating of Procurement policies and procedures – December 2019 6

The Capital Planning Process Capital Needs Identification Capital Project Implementation & Monitoring Long-Range Master Plan Annual Capital Budget Fund Sources Identified Rolling Fiveyear Capital Plan 7

AUC Capital Planning Committee Mandate To advise on campus land-use decisions and capital investments. The Committee oversees the preparation of the campus Long Range Development Plan, the annual capital budget, the rolling five-year capital plan, any campus projects with the municipality, and other governmental agencies on local plans affecting AUC. Chaired by the Vice President for Finance and CFO, the Committee resides within the Finance Division. It will consult and collaborate with the range of university stakeholders to address our campus development needs in a dynamic global higher education market. In consultation with the Counselor of the University and the General Counsel, the Committee will make recommendations on capital projects to the President for a final decision on which projects to submit to the Board of Trustees for consideration and approval. All authorized capital allocations and expenditures must align with limits as set in the University’s by-laws. 8

Capital Planning Committee Membership Name Title Gordon Handke (Chair) Vice President for Finance & CFO Ehab Abdel Rahman Provost Mahmoud Abdallah Senior Advisor for Enterprise Risk Management & Strategy Shereen Shaker Vice President for Management & Operations Deena Boraie Vice President for Student Life TBD Chief Digital Officer Ranya Boraie Vice President for University Affairs & Chief of Staff Iman Megahed AVP for Digital Innovation & Chief Strategy Officer Amir Habib Chief Budget & Financial Planning Officer Mina Gamil Director, Capital Planning Management & Recording Secretary TBD Faculty Member(s) as recommended by the Provost 9

Capital Project Charter Document • Project Needs • Safety and Security • Academic programs, student needs, administrative needs (including IT and furniture and equipment) • Facility maintenance, operations and systems • Grounds • Community engagement • Project Scope • Project Resource Requirements (Budget, Staffing) • Project Funding • Project Schedule • Operations and Maintenance Implications 10

Operating Revenue – FY 21 -22 Key Decisions • Enrollment projections Endowment Income 13% • Student population (Egyptian/International) • Tuition Fees Gifts & Grants 12% • Advancement plans • Endowment draw Gross Tuition & Fees 62% Education/Auxiliary Services 9% • Revenue centers plans (educational & auxiliary) • Interest rates and short-term investment ST Investment/Other Income 4% 11

Operating Expenses – FY 21 -22 Key Decisions • Compensation plans • Staffing requirements Supplies and Services 23% Financial Assistance 14% • Student financial assistance Depreciation 10% • Inflation rate impact on supplies and services • Foreign exchange rate projections • Academic initiatives • IT initiatives Salaries & Benefits 45% External Grants 5% Academic Initiatives/Contingency 2% • Facilities initiatives 12

Questions? 15