The Florida International University BOARD OF TRUSTEES

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The Florida International University BOARD OF
TRUSTEES MEETING Operating Budget FY05-06 June
29, 2005
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The Florida International University Board of
TrusteesFINANCE AND AUDIT COMMITTEE
AGENDA

• University wide 2005-06 Budget Summary by fund
• Delineate E G budget
• Review revenue drivers, specifically tuition
  increase resolution
• Present waiver strategy and corresponding policy
• Detail expense increases
• Highlight most significant changes per Fund
• Overview of Local Funds and FIU Foundation
• Present proposal to increase Student Activities
  fees
• Review Resolutions

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UNIVERSITY WIDE BUDGET SUMMARY
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UNIVERSITY WIDE BUDGET SUMMARY
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E G INCREMENTAL REVENUE
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E G INCREMENTAL REVENUE
22,625
Note Fiscal Years 03-04, 04-05 and State Target
05-06 represent Fundable FTEs only while Budgeted
05-06 Total FTE are 23,046, of which 22,625 are
Fundable FTEs
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E G INCREMENTAL REVENUE Undergraduate tuition
increase proposal 5 for Resident

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E G INCREMENTAL REVENUE Graduate tuition
increase proposal 5 resident

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E G INCREMENTAL REVENUE Waiver strategy and
proposed policy
Used to recruit in a highly competitive market
Policy seeks to ensure consistent application of
waiver distribution
Projected Budget 04-05 05-06 103.1 111.3 7.1
9.0 1.3 1.3 3.2 3.3 0.6 0.6
12.2 14.2 1.3 1.4 88.5 95.7

• Undergraduate
• Test results and grade point average
• Minimum enrollment credits
• First time in college students
• Graduate
• To be established by the Provost

Gross Tuition Fee Waivers Under/Grad LACC Sp
onsored Credit Other Incid. Total
Waivers Exemptions Net Tuition Fee
Projected 04-05 waivers based on a report from
the student financial system on April 21,
2005. Budgeted waivers are established as a
percent of gross tuition.
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E G EXPENDITURES
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E G EXPENDITURES Personnel growth tied to
salary increases

• Permanent Salary expenditures will increase due
  to the full year incremental impact of the 4
  salary increases awarded in 04-05 of 3.2M
• The State salary increases of 3.6 across the
  board account for approximately 5.1M
• Assumes no other salary increases in 2005-06
• OPS expenses decreasing 1.6M from 2004-05 to
  2005-06 due to
• 1M PeopleSoft consultants charged to OPS in
  2004-05, offset next year by new consulting
  contracts charged to Expense
• Savings of 0.5M from BBC Shuttle service being
  absorbed by auxiliary operations
• OPS employees increased by 221 primarily due to
  higher Graduate Student Assistants offset by
  lower Faculty Adjuncts

Permanent Salaries

OPS Payroll
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E G EXPENDITURES

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E G EXPENDITURES

• Law 1.3M
• Business Expansion Accreditation 1.3M
• Research Start-Up Investments 1.6M
• Public Health .500M
• Merit-based Scholarships 3.8M

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E G EXPENDITURES

• Utilities 2M
• Maintenance Contracts .6M

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E G EXPENDITURES

PeopleSoft Human Resources 1.65M, net
PeopleSoft increase is 0
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E G EXPENDITURES

All other Executive Areas remain flat to prior
year, includes Directors Policy
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UNIVERSITY WIDE BUDGET SUMMARY
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AUXILIARY REVENUES Budgeted increase of 9.5
exceeding 82 million
Budget FY05-06 Incremental Revenue
Projected FY04-05 Revenue
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AUXILIARY ENTERPRISES INVESTMENTS Continue
providing a source for critical expansions

• Net income increases to 4.3M from a 2.06M loss
  the previous year, driven by favorable operating
  income of 5.5M and lower transfers
• Although net transfers are lower, infrastructure
  investments and loan repayments planned totaling
  8M
• Student related investments Graham Center
  Expansion BBC, Cafeteria Expansion, Recreational
  Field Construction

Operating Investments FY 2005-06
Future Investment Commitments

• 15.7M held as reserves for already committed
  future investment projects
• New Parking Garage, Lakeview Housing, IT Network
  refresh
• Plans under development to invest remaining net
  income while some cash held to meet working
  capital needs

• Lease agreement necessary to control capital
  expenditures in Telecom Operations by 1.8M
• New bond issue to cover 5.5M increase in
  construction costs for Lakeview Housing from
  escalating cement and other material costs

Investment Assumptions
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UNIVERSITY WIDE BUDGET SUMMARY
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SPONSORED RESEARCH PERFORMANCE HIGHLIGHTS

• Forecasted to increase by 10.4M based on new
  multi-year grant proposals growing from 63.4M to
  73.8M
• The majority of new proposals are sponsored by
  the Federal Government allowing higher indirect
  cost recovery
• FY 05-06 will generate positive operating income
  mainly due to a change in strategy that
  significantly reduces cost sharing and increases
  cost recovery
• Despite financial improvement, funds might not be
  available to support new startup equipment
  expenditures
• Billing in 04-05 was slower due to PeopleSoft
  conversion and staff restructuring in Office of
  Sponsored Research Administration post-award
• For 05-06, a new billing process will improve
  liquidity and generate a 2M one time revenue
  gain

Projected Financial Improvement
Working Capital
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UNIVERSITY WIDE BUDGET SUMMARY
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FINANCIAL AID SCHOLARSHIPS PERFORMANCE HIGHLIGHTS
Need Based Activity

• Need-based financial aid scholarships are
  estimated to increase from 38.4M in FY 04-05 to
  38.9M in FY 05-06
• Mainly comprised of Pell Grants and Florida
  Student Assistant Grants
• Based on a strategic decision to attract high
  achieving students, the University committed
  26.9M receiving 23M from merit based funding
  sources and 3.9M funding from EG
• Non-Need based (merit) financial aid consists of
  Bright Futures, Private and FIU funded
  scholarships
• Loan fund activity increasing from 62.1M in
  FY04-05 to 70.1M in FY05-06 is due to
• Tuition increases from core coursework, tuition
  plus programs

Merit Based Activity
Loans
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FINANCIAL AID FUNDING TREND
3.9M merit scholarships funded by EG
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UNIVERSITY WIDE BUDGET SUMMARY
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OTHER LOCAL FUND PERFORMANCE HIGHLIGHTS

• A 15 or 1.38 fee increase to 10.52 from 9.14
  per student credit hour is proposed for 05-06 to
  fund the student recreation center
• Forecasted incremental revenue is 1.45M (1.15M
  due to fee increase and .3M due to additional
  credit hours) while higher expenses to manage the
  student center held in auxiliaries
• Incremental fee approved by the University Fee
  Committee consisting of four staff members and
  four student representatives
• Athletics Revenues are increasing to 13.4M, a
  0.9M increase
• 10.8M or 80 of athletics come from student
  fees, increasing 0.9M due to higher FTE students
  
• Remaining funding stays flat .3M ticket sales,
  1M in game guarantees, .8M foundation, .2M
  sponsorships and .3M other
• The following re-alignments impacted year over
  year expenditures

Activities Services
Intercollegiate Athletics
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FIU FOUNDATION, INC. Approved by FIU Foundation
Board May 2005

• Income decrease of 3.3M from the previous year
  is a result of
• Decrease in State matching endowments of 3.9M,
  since State fully matched all of pending requests
  in FY04-05
• A decrease in budgeted endowment revenues of
  1.3M
• Projected increase of investment earnings of
  1.5M from a higher investment pool

Revenues FY 2005-06

• Increase in expenses of 4.4M from previous year
  is a result of
• The donated amounts received in FY04-05 of 3.2M
  will be remitted (expended) to the University in
  FY05-06 to be used on donor approved projects
• Higher investment earnings from endowments
  amounting to 1.2M are distributed to
  corresponding University accounts

Expenditures FY 2005/06
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FIU FOUNDATION, INC. Approved by FIU Foundation
Board May 2005
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UNIVERSITY WIDE REVENUE EXPENDITURE SUMMARY
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RESOLUTION SUMMARY

• Increase in Resident Tuition at all levels 5
  (Undergraduate, Graduate Law)
• New Architecture Resident Graduate Students 15
  increase (additional 28.79/cr hr)
• No increase in Non Resident Fees
• Flexibility to lower fees for Non-Resident
  students existing and new
• Delegate to President authority to approve any
  subsequent amendments subject to following Rule
  process

Tuition Rule
Waiver Policy

• Specific Undergraduate student criteria
• Delegate authority to Provost to establish
  criteria for Graduate students

AS Fees

• Increase of 1.38/cr hr. from 9.14 to 10.52
• Higher fee to fund Recreational Sports Centers at
  University Park Biscayne Bay Campus

• Operating Revenues and Expenditures for EG,
  Auxiliaries, Sponsored Research, Local Agencies
  and FIU Foundation
• Capital Improvement Plan 2006-07

2005-06 Operating Budget