Board of Trustees Retreat Budget Overview Robert Pompey
Board of Trustees Retreat Budget Overview Robert Pompey Vice Chancellor for Business and Finance July 15, 2016 North Carolina Agricultural and Technical State University
North Carolina Agricultural and Technical State University Agenda • University Financial Profile • State Fund Budget vs. Actual • State Appropriation Budget FY 16 -17 (previously approved) • Short Session Budget Update • A&T Foundation Update www. ncat. edu 2
North Carolina Agricultural and Technical State University Financial Profile FY 2009 FY 2015 Assets $396 million $442 million Endowment Market Value $20 million $47 million Property Plant and Equipment $303 million $333 million Liabilities $38 million $58 million www. ncat. edu 3
North Carolina Agricultural and Technical State University Financial Profile (continued) FY 2009 FY 2015 Long-term Debt $24 million $46 million Net Assets $358 million $373 million Revenues $206 million $250 million Expenses $229 million $246 million Moody’s Credit Rating N/A A-1 www. ncat. edu 4
North Carolina Agricultural and Technical State University State Fund Budget vs. Actual Analysis as of May 31, 2016 (000’s omitted) www. ncat. edu 5
North Carolina Agricultural and Technical State University SHORT SESSION UPDATE www. ncat. edu 6
North Carolina Agricultural and Technical State University SB 873 - ACCESS TO AFFORDABLE COLLEGE EDUCATION ACT • Fixed Tuition and Fees • Fees capped at 3% increase (currently 5% for Board of Governors approved fees) • Tuition Reduction (ECSU, UNCP and WCU) • • 18% enrollment cap review for the above Universities In-state tuition – nonresident graduate research or graduate teaching assistants • Cheatham White Scholarship (NC A&T and NCCU) www. ncat. edu 7
North Carolina Agricultural and Technical State University FIXED TUITION AND FEES (undergraduate students) • Fixed tuition for each incoming class for 4 years • Excludes summer sessions • Effective Fall 2016 • Tuition increases will only apply to incoming freshmen and transfer students www. ncat. edu 8
North Carolina Agricultural and Technical State University Example of Fixed Tuition and Fees - Impact • Tuition increase - $100 • Freshmen and Transfers FTE - 1, 800 • Continuing Undergraduate FTE - 6, 200 • Total Undergraduate FTE – 8, 000 www. ncat. edu 9
North Carolina Agricultural and Technical State University Example of Fixed Tuition and Fees – Impact (continued) Increase in Tuition Revenues Current Guidelines Proposed Legislation $800, 000 $180, 000 Impact of Legislation ($620, 000) www. ncat. edu 10
North Carolina Agricultural and Technical State University Cheatham – White Scholarships • Scholarship funds for exceptional students • Fashioned similar to Morehead and Park Scholarships • Includes tuition, fees, room, board, supplies, and international travel experience • 50 student awards per year – 40 resident and 10 nonresident www. ncat. edu 11
North Carolina Agricultural and Technical State University Cheatham – White Scholarships (continued) • Funding of approximately $3 million for the program • Private fundraising match required • Effective Fall 2018 www. ncat. edu 12
North Carolina Agricultural and Technical State University OTHER BUDGET PROVISIONS • Salary Increases 1. 5% +. 5% Bonus (across the board increase) • Merit Increase Pool -. 75% • Advancement Cap Eliminated www. ncat. edu 13
North Carolina Agricultural and Technical State University FY 2017 Short Session Budget Impact Year Ending June 30, 2017 Reductions Enrollment Growth Funding Reduction Management Flex Budget Reduction 148, 429 1, 880, 408 Advancement Program Cap (eliminated) Total Reductions 2, 028, 837 www. ncat. edu 14
North Carolina Agricultural and Technical State University History of Permanent Reductions at North Carolina A&T Fiscal Year Amount Position Eliminations 2008 $ 591, 376 0 2009 $ 1, 094, 000 12 2010 $ 5, 139, 349 32 2011 $ 4, 000 0 2012 $ 14, 171, 475 147. 4 2015 $ 9, 200, 000 $ 4, 621, 937 53 6 2016 $ 1, 300, 000 6 2017 (proj. ) Total $ 2, 029, 000 $ 42, 147, 137 0 250. 4 www. ncat. edu 15
North Carolina Agricultural and Technical State University FOUNDATION UPDATE www. ncat. edu 16
North Carolina Agricultural and Technical State University Overall Goals • Repurpose the North Carolina A&T Foundation to a Real Estate Foundation • Revise the Structure of the Foundation • Transition financial records to the University System • Enhance Operational Structure www. ncat. edu 17
North Carolina Agricultural and Technical State University Current Status • Real Estate Focus Adopted • Board Members – 9 to 15 • Board Chair vs. President • Adopted a Strategic Plan www. ncat. edu 18
North Carolina Agricultural and Technical State University Current Status (continued) • Appointed an Executive Director • Financial Records Transitioned to the University • Foundation Employees are State Employees • Major Functions have been enhanced and consolidated (payroll, receipts, and disbursements) www. ncat. edu 19
North Carolina Agricultural and Technical State University QUESTIONS! www. ncat. edu 20
- Slides: 20