Transcript Power Point - Finance - The Catholic Diocese of Peoria

Site Meeting Presentation
2013-14 School Year
Let’s think about Catholic education in the U.S.



1839 - Request by Father Blasé Raho, Vincentian missionary in La Salle on
behalf of Catholics in Peoria
Asked Bishop Joseph Rosati of St. Louis to invite The Sisters of the Visitation
or Madames of the Sacred Heart to set up a school
1863 - Sisters of St. Joseph established the first “official” Catholic school in
Peoria
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Do you know the history and traditions of your school?
2011-12 Elementary School Income
Elementary School Income (2011-2012)
Income Sources
Amount
Tuition/Fees
$19,997,510
Parish Investment
$15,050,754
Development/Fundraising
$3,063,816
Extracurricular
$379,334
Other
$3,256,590
TOTAL
$41,748,004
Percent
48%
36%
7%
1%
8%
100%
Sample School Income Comparison
Total 2011-12 Elementary School Income
2011-12 Your School Income
2012-13 Your School Income
70%
65%
60%
60%
50%
40%
48%
36%
34%
27%
30%
20%
8%
7%
10%
4%
7%
1%
0% 0%
1%
2%
0%
Tuition/Fees
Parish Investment
Development/Fundraising
Extracurricular
Other - Cafeteria
2011-12 Elementary School Expense
Elementary School Expenditures (2011-2012)
Expenses
Amount
Salaries/Benefits
$31,487,286
Instructional Materials
$1,003,620
Cafeteria
$1,411,120
Extracurricular
$376,777
Other
$7,365,513
TOTAL
$41,644,316
Percent
76%
2%
3%
1%
18%
100%
Sample School Expense Comparison
Total 2011-12 Elementary School Expenses
2011-12 Your School Expenses
2012-13 Your School Expenses
90%
86%
82%
80%
76%
70%
60%
50%
40%
30%
18%
20%
15%
11%
10%
2%
3%
2%
3%
0%
1%
1%
0%
0%
0%
Salaries/Benefits
Instructional Materials
Cafeteria
Extracurricular
Other
We must have a plan….
Planning
Reporting
Analyzing
and
Stewardship

Five-year financial planning strategy
combines long-range strategic school
objectives with funding alternatives
 Driven by the Strategic Plan
 What do we want to accomplish?
 How much will it cost to…?
 How can we afford to….?
 Funding Model Limited in Potential
 All Families Subsidized Regardless of Need
 Enrollment Trending Down in the Diocese
 Subsidy Levels May Not be Sustainable
 Few Schools Have Multi-year Financial Plans
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
Define the Cost of Education
Operate Schools with Efficient Staffing Levels
Increase the Percentage of Tuition Revenue
Shift Part of Parish Subsidy to Financial Aid
Strengthen Development Efforts
_________


Schools to Follow Good Business Practices
Increase Diocesan Financial Assistance
Use the FAITH IN OUR FUTURE EXCEL TEMPLATE to complete Steps 2 through 12 for your
school. Instructions are included in the tab prior to each worksheet. SAVE THE TEMPLATE
ON YOUR COMPUTER first. If you are not able to save the file, contact the Office of
Catholic Schools and an Excel 97-2003 version of the file will be emailed to you.
STEP 2: Build an enrollment projection
STEP 3: Build a staff projection based on enrollment
STEP 4: Project expenses
STEP 5: Project salaries using salary frame (if available)
STEP 6: Project parish support
STEP 7: Project development/fundraising income and expense
STEP 8: Project financial assistance dollars available from all sources
STEP 9: Project tuition
STEP 10: Adjust the variables and create alternative scenarios until you find a
scenario that balances revenue and expense. Create a conservative and optimistic
projection if necessary.
STEP 11: Write down significant assumptions you used for revenue and expenses
STEP 12: Write goals/strategies with rationale and timelines for each major area
of the financial plan
STEP 13: Develop a communications plan (refer to the document above
"Developing and Implementing a Funding Plan for Local Schools"), pp. 5-6
• Project Enrollment
• Build a Staff Projection
• Project Expenses – Project Salaries
• Project Income
•
•
•
Parish Support
Development and Fundraising
Financial Assistance
• Project Tuition
SAM PLE ENROLLM ENT PROJECTION
By Grade
Actual
2008-09 2009-10 2010-11 2011-12 2012-13
PreK
K
1
2
3
4
5
6
7
8
Ye ar 1
Proje ction
Ye ar 2
Ye ar 3
Ye ar 4
Ye ar 5
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
16
16
16
15
15
15
15
15
15
15
17
16
16
16
15
15
15
15
15
15
17
17
16
16
16
15
15
15
15
15
17
17
17
16
16
16
15
15
15
15
17
17
17
17
16
16
16
15
15
15
17
17
17
17
17
16
16
16
15
Total K-8
135
135
135
135
138
140
142
144
146
148
Total Pre K-8
150
150
150
150
153
155
157
159
161
163
Ne t Gain/Los s by Grade
4-Ye ar
Ave rage
Us e d in
Proje ction
K to 1st
1st to 2nd
2nd to 3rd
3rd to 4th
4th to 5th
5th to 6th
6th to 7th
7th to 8th
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Gain/Los s
0
0
0
2
0
0
92%
8%
92%
8%
92%
8%
92%
8%
92%
8%
100%
100%
100%
100%
100%
By Re ligion
Catholic
Non-Catholic
Total
STAFF PROJECTION BASED ON ENROLLMENT
Function
Actual
Full-Tim e
Equivalent
2012-13
Actual
Full-Tim e
Equivalent
2013-14
2014-15
Projected Full-Tim e Equivalent
2015-16
2016-17
2017-18
2018-19
Adm inistration
Principal
Business Mgr./Bookkeeper
Development
Total Administration
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Faculty
K teacher
1st grade teacher
2nd grade teacher
3rd grade teacher
4th grade teacher
5th grade teacher
6th grade teacher
7th grade teacher
8th grade teacher
Art teacher
Computer teacher
Foreign language teacher
Librarian
Music teacher
Physical education teacher
Resource person
Science teacher
Total Faculty
Aides
Clerical
Maintenance
Total Other
SCHOOL EXPENSE
Salaries
420,000
436,800
454,272
481,528
510,420
541,045
Employee benefits
84,000
87,360
90,854
96,306
102,084
108,209
20% Calculated as a percent of salaries
Materials & supplies (incl. textbooks, library)
40,000
41,600
43,264
44,995
46,795
48,667
4%
60,000
62,400
64,896
67,492
70,192
73,000
4% Doesn't include deferred maint. or major capital investments.
20,000
30,000
30,000
40,000
50,000
Make new investments that show more value to parents
paying more tuition.
Increase 4% for 2 years and 6% thereafter to close the gap
and move toward a scale.
Athletics (net)
Repairs & maint. (incl. insurance, utilities)
Other education program expenses
New investment in education
Debt (interest and principal)
Total School Expenses
$604,000 $648,160 $683,286 $720,321 $769,491 $820,921
SAMPLE FINANCIAL PROJECTION FOR EDUCATION PROGRAM K-8
Enrollm ent Grow s to 148
Actual
2012-13
Year 1
Year 2
Year 3
Year 4
Year 5 F o rm ula Assum ptions
SCHOOL INCOME
Tuition Income (Gross)
Fee Income
Financial aid
Financial aid from parish investment
Financial aid from Spalding Fund/Diocese1
Tuition discounts employee
Uncollectable tuition
$268,975
19,320
(17,000)
Tuition and Fee Incom e (net) paid by parents
$267,295
$284,432
$316,268
$352,149
$402,779
$453,109
210,000
214,656
221,525
224,042
226,492
228,870
94,000
15,000
25,000
94,000
5,000
15,000
25,000
94,000
7,500
15,000
25,000
94,000
10,000
15,000
25,000
94,000
12,500
15,000
25,000
$134,000
$139,000
$141,500
$144,000
$146,500
Parish Investm ent in Education
Developm ent Incom e
Fundraising (net)
Annual Fund
Other development/contributions
Transfer from endow ment
Total Development Income
Miscellaneous Incom e
(Rental, interest, sales, unrestricted reveue)
(4,000)
0
13,000
$297,275
19,600
$333,597
19,880
$374,726
20,160
$432,659
20,440
(17,000)
(8,599)
(17,000)
(13,046)
(17,000)
(18,215)
(17,000)
(25,292)
(4,000)
(2,844)
(4,000)
(3,163)
(4,000)
(3,522)
(4,000)
(4,028)
13,000
13,000
13,000
13,000
$490,762
20,720
(17,000)
(32,842)
Grow s to 11% of net tuition income.
(4,000)
(4,531) 1% of net tuition income
94,000 Hold flat
15,000
15,000
0%
31,250
$155,250
13,000
0%
Early Childhood Program (net)
Before/After School Program (net)
Hot Lunch/Milk Program (net)
Total School Incom e
$140 /student
0%
$624,295
$651,088
$692,293
$733,191
$788,771
$850,229
SAMPLE TUITION WORKSHEET
2012-13
# at
$ Rate
Rate
Qualifying Rate
1st child
2nd child
3rd child
$2,200
1,125
900
Total Qualifying
Non-Qualifying Rate
1st child
2nd child
3rd child
Total Non-Qualifying
Total
$3,300
2,425
2,250
Tuition
Incom e
88
34
5
$193,600
38,250
4,500
127
$236,350
7
3
1
$23,100
7,275
2,250
11
138
$211,464
44,438
6,535
128
$262,437
7
3
1
$24,948
8,019
1,871
$32,625
11
$268,975
140
51%
41%
Percent used to calculate number of Non-Qualifying students:
1 child
5%
2 children
2%
3 or more children
1%
2nd child % of 1st child
3rd child % of 1st child
73%
68%
Percent tuition increase for 1st child
K-8 Enrollment
138
$2,376
1,307
1,307
Tuition
Incom e
89
34
5
Percent used to calculate number of Qualifying students:
1 child
64%
2 children
25%
3 or more children
4%
2nd child % of 1st child
3rd child % of 1st child
Year 1
# at
$ Rate
Rate
$3,564
2,673
1,871
Year 2
# at
$ Rate
Rate
$2,566
1,540
1,540
Tuition
Incom e
91
35
5
$233,506
53,900
7,700
131
$295,106
7
3
1
$26,943
8,661
2,887
$34,838
11
$297,275
142
$3,849
2,887
2,887
Year 3
# at
$ Rate
Rate
$2,828
1,782
1,782
Tuition
Incom e
92
35
5
$260,176
62,370
8,910
132
$331,456
7
3
1
$29,694
10,182
3,394
$38,491
11
$333,597
144
$4,242
3,394
3,394
Year 4
# at
$ Rate
Rate
$3,170
2,156
2,156
Tuition
Incom e
93
36
5
$294,810
77,616
10,780
134
$383,206
7
3
1
$33,285
12,126
4,042
$43,270
11
$49,453
$374,726
146
$432,659
$4,755
4,042
4,042
64%
25%
4%
64%
25%
4%
64%
25%
4%
64%
25%
4%
55%
55%
60%
60%
63%
63%
68%
68%
5%
2%
1%
5%
2%
1%
5%
2%
1%
5%
2%
1%
75%
70%
75%
75%
80%
80%
85%
85%
8.0%
8.0%
10.2%
12.1%
140
142
144
146
STATISTICS
2012-13
Year 1
Year 2
Year 3
Year 4
Year 5
138
$4,377
140
$4,630
142
$4,812
144
$5,002
146
$5,270
148
$5,547
43%
34%
21%
44%
33%
21%
46%
32%
20%
48%
31%
20%
51%
29%
19%
53%
27%
18%
8%
10%
10%
10%
11%
11%
Qualifying Tuition Rate as % of cost per pupil
Non-Qualifying Tuition Rate as % of cost per pupil
50%
75%
51%
77%
53%
80%
57%
85%
60%
90%
63%
95%
Parish investment as % of school expenses
35%
33%
32%
31%
29%
28%
$416,000
50%
$429,312
50%
$443,050
50%
$457,228
49%
$471,859
48%
$486,958
47%
K-8 Enrollment
Cost per pupil
Sources of Revenue:
Net Tuition and Fees
Parish Investment in operations
Development
Fin. aid & tuition discounts as % of gross tuition inc.
Parish Ordinary Income
Parish investment as % of ordinary income
Enrollment steadily increases.
Parish ordinary income increased 3.2% annually.
• Begin with historical data
• More than an annual budget
• Template that incorporates using
some “What if…” scenarios
• Tool to guide decision makers
• How best can we achieve our goals
and realize our dreams?
 Adjust the variables
 What are your options?
 Move toward a new funding model
• School and Parish are a business
• Financial Statements:
•
•
Analysis only as good as information
provided
Consistent reporting
• Budgeting:
•
•
Long-range Financial Plan
Annual operating budget