Transcript WVU Department of Intercollegiate Athletics

West Virginia University
Review of the Draft Annual Financial Report
FY 2014
Dan Durbin
Senior Associate Vice President-Finance
October 31, 2014
Draft Report Contents
FY 2014 Draft Annual Financial Report Includes:
• Combined Financial Activity (Pg. 33) For:
 West Virginia University
 Potomac State College of West Virginia University
 West Virginia University Institute of Technology
 West Virginia University Research Corporation
• Management’s Discussion and Analysis (pg. 16)
• Auditor’s Opinion will be Included in Final Report
 Unqualified (Clean) Opinion Expected
 No BOG/Audit Committee Management Letter Expected
2
Highlights of the FY 2014 Draft Financial Activity
• Actual results influenced by extraordinary events
 2020 Plan Investments
 Software Donations
 GASB 45 (OPEB) continues to temporarily skew statements
• Actual Performance exceed budgeted expectations
• Two “billion dollar” milestones: total revenues and net position
excluding OPEB
• Continued positive trends in:





•
Revenues
Expenses
Cash
Operating Margin (adjusted for extraordinary items)
Balance Sheet Stability
3
Positive Trends to Consider
Trend in Expenses
Trend in Revenues
Net Tuition & Fees
Salaries & Wages
State Appropriations
Supplies & Other Services
Gifts, Grants & Contracts - non-capital
Benefits
Auxiliary Enterprises
Utilities & Scholarships
Gifts, Grants & Contracts - capital
Depreciation
Other
Other
0
100,000
200,000
300,000
0
$ in thousands
2013
100,000
200,000
400,000
500,000
$ in thousands
2014
2013
•
•
•
300,000
Tuition and Fees
Auxiliary Enterprises
Grants and Contracts
2014
• Human Capital (Our Employees)
• Students
• Facilities
4
Overview of WVU’s Financial Reports
MEASUREMENTS OF FINANCIAL PERFORMANCE
Statement of Revenues,
Expenses and Changes in
Net Position
(Income Statement)
Statement of Cash Flows
Statement of Net Position
(Balance Sheet)
MEASUREMENT OF FINANCIAL POSITION
5
FY 2014
Statement of Revenues, Expenses and Changes in Net Position (Income Statement)
(Pg. 35)
Analysis of Revenues and Expenses
Change from Prior Year
FY 2014
Amount
Amount
Percent
Operating Revenues
Non-Operating Revenues
Sub-Total Revenues
$706
$269
$975
$23
($11)
$13
3%
-4%
1%
Operating Expenses
Non-Operating Expenses
Total Expenses
$955
$23
$979
$9
$1
$10
1%
4%
1%
$1
30%
Income (Loss) Before Capital Related
Revenues
($3)
Capital Related Revenues
$26
($13)
-33%
$23
($12)
-33%
Increase in Net Position
$ amounts in millions
TOTAL REVENUES EXCEED $1 BILLION
6
Analysis of Operations – FY 2014
From Statement of Revenues, Expenses and Changes in Net Position
(Income Statement)
FY 2014
Amount
Income (Loss) Before Capital Related
Revenues
($3)
Impact of Extraordinary Items :
+ GASB 45 Accrual
+ Donated Software Amortization
Unrealized Investment Gains
$3
$19
($12)
Adjusted Operating Margin
$7.4
$ amounts in millions
7
Summary of Cash Flows – FY 2014
(Pg. 37)
Cash Balance on July 1, 2013
Unrestricted
$
132,274
Restricted
$
96,194
747,071
4,139
751,210
414,199
20,065
83,498
517,762
668,639
81,121
3,034
752,794
415,753
81,313
497,066
Cash Generated From:
Operations
Capital/Debt Activities
Investment Activities
Cash Consumed By:
Operations
Capital/Debt Activities
Investment Activities
Change in Cash
$
Cash Balance on June 30, 2014
$
(1,584)
130,690
$
20,696
$
116,890
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Statement of Net Position (Balance Sheet) as of 6/30/14
(Pg. 33)
Analysis of Assets and Liabilities
Change from Prior Year
FY 2014
Amount
Percent
$5
2%
Current Assets
Non-Current Assets
(including capital)
Total Assets
$1,622
($6)
0%
$1,809
($2)
0%
Deferred Outflow of Resources
$14
($1)
-4%
$1,824
($2)
0%
$145
$822
($8)
($17)
-5%
-2%
$967
($26)
-3%
TOTAL
Current Liabilities
Non-Current Liabilities
(Including $167 million of GASB 45)
Total Liabilities
Deferred Inflow of Resources
TOTAL
$188
Amount
$1
$968
$1
($25)
-3%
$ amounts in millions
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Statement of Net Position (Balance Sheet)
as of 6/30/14 (cont.)
Analysis of Net Position
Change from Prior Year
FY 2014
Amount
Amount
Percent
$868
($2)
0%
Restricted
$31
$3
9%
Unrestricted
($43)
$22
34%
$856
$23
3%
Net Capital Assets
Total Net Position
Excluding $167 Million GASB 45/OPEB Accrual
Unrestricted Net Position
$125
$25
25%
Revised Total Net Position
$1,023
$26
3%
REVISED NET POSITION EXCEEDS $1 BILLION
$ amounts in millions
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A Deeper Look Into the Statements
Changes from 2012 to 2014
2012
2013
2014
$90 million
$97 million
$102 million
76 Days
78 Days
80 Days
$619 million
$646 million
$625 million
3.8%
4.7%
5.0%
$2.1 million
$4.6 million
$7.4 million
34.5%
36.0%
37.0%
Unrestricted Investments
$54 million
$59 million
$68 million
Facilities Impacted By New Construction, Leasing &
Renovation
553,189 SF
444,612 SF
212,440 SF
Student Scholarships
Days of Operating Cash on Hand
Total Long-Term Debt
(Excluding OPEB)
Debt Burden
(Debt Sevice as a % of Operating Expenses)
Adjusted Operating Margin
Tuition Dependency
(% of Non-Capital Revenues)
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Conclusions
• The University remains financially stable:




Positive adjusted operating margins
Stable balance sheet
Sufficient current assets to satisfy current liabilities
WV’s GASB 45/OPEB solution is making welcome changes
• Active investments in strategic items
• Sound financial planning and evaluation process
• Continued dependence on tuition revenue
 Limited growth potential in future enrollment
 Pricing
 Competition
• Future challenges
 State support
 Federal support (grants)
 Enrollment
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Questions?