FY23 Program Revenue Balances Review
FY23 Total Unrestricted Balances are down by $6.4M compared to the previous year, representing a 0.6% decrease. The balance is $1.081 billion, with 87% meeting the Legislative Audit Bureau's definition of obligated, planned, or designated. Detailed breakdowns of Tuition Balances, Total Unrestricted Balances, and Deficit Spending by Fund Source are provided. Discover how Auxiliary Balances are allocated for various capital commitments and projects across several universities.
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Presentation Transcript
FY23 Program Revenue Balances Review Sean P. Nelson, Vice President for Finance and Administration Board of Regents Business and Finance Committee October 5, 2023
FY23 Total Unrestricted Balances Overall, the total Unrestricted Balances are down over previous year by $6.4M, or approximately 0.6% Total FY23 Unrestricted Balances: $1.081 billion FY13 total in inflation-adjusted dollars: $1.39B Nearly 87% of Total Unrestricted Balance meets the Legislative Audit Bureau s definition of obligated, planned or designated for a specific project, initiative, program, or capital commitment
FY23 Total Unrestricted Balances Summary Tuition balances are down by $51.6M (or 17%) 55% below FY13 GPR/Tuition balances Balance represents approximately 31 days of operating expenses Auxiliary balances are down by $8.9M (or 3%) General Operations balances are up by $19.9M (or 13%) Federal Indirect Cost Reimbursement balances are up by $35.2M (or 14%)
Tuition Balances Tuition balances are down $51.6M, or 17% from prior year 600 551.5 500 395.4 400 337.4 Millions of Dollars 333.2 298.3 300.9 295.6 277.2 300 246.7 245 227.3 200 Green line represents 12% of budgeted expenditures, the BOR reporting threshold for program revenue balances in Regent Policy Document 21-6 T U I T I O N F R O Z E N 100 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Deficit Spending by Fund Source Deficit Spending & Unbudgeted Salaries $64.4M Other $1.7M 2.6% General Program Operations $17.4M 26.9% Nine universities reported planned deficit spending for FY24: UW-Milwaukee, UW-Eau Claire, UW-Green Bay, UW-Parkside, UW-Platteville, UW-River Falls UW-Stevens Point, UW-Superior, and UW-Whitewater GPR/Tuition $30.8M 47.9% Auxiliary Operations $14.5M 22.6%
Auxiliary Balances: A Closer Look at Commitments Enumerated Projects Small/All-Agency Projects Debt Service Deficit Spending Encumbrances Fixed Asset/Capital Equipment Non-capital/Undesignated 6% 6.4% $20.9M 15% $22.9M 3% 62% of Auxiliary balances are allocated for new or ongoing capital commitments and debt service 16% Champions Hall Renovation/Addition, UW-Stevens Point Residence Hall & Sports Facility Upgrades, UW-River Falls Sandburg Residence Hall & Union Renovation, UW-Milwaukee Center for the Arts Parking Ramp, UW-La Crosse 50% 4% $175.1M Esker Dining Hall Remodel, UW-Whitewater (partial listing of total projects)
Key Takeaways Expenses increasing to pre-pandemic levels Example: Travel declined 84% between FY19 and FY21, but returned to near-FY19 levels in FY23 Inflation adding to campus operating costs and eroding purchasing power of reserves UW universities anticipate further reductions in FY24 balances One-time Federal COVID relief funding is now fully drawn down 10 campuses project budgetary shortfalls $64.4 million identified for planned shortfalls and funding staff positions not funded in the current FY24 operating budget 11 comprehensive campuses comprise 33% of total unrestricted balances
