annual financial statement analysis – fy 2010-2014
TRANSCRIPT
Annual Financial Statement Analysis – FY 2010-2014 Finance and Administration Committee – January 15, 2015
Page F-21
Overview
Purpose • Provide information on the financial health of the university, including
key financial metrics over time and compared to peer data.
Overview
• Public universities operate in a challenging financial environment o Volatile and declining levels of state funding o Pressure/obligation to keep tuition rates low for our students o Historic pressure to keep reserves low o Need to grow self-generated revenue o Minimal ability to budget for capital renewal o Balance competing goals of financial strength with access and affordability
Slide 1 Page F-22
Financial Analysis
Analysis separated into three sections: • Trend analysis of key financial information (Slides 3-8) • Comparison of key financial information to peer data (Slides 9-21) • Trend analysis of specific financial metrics (Slides 22-30) o Debt policy metrics o Core financial health metrics
Slide 2 Page F-23
Trend Analysis of Key Financial Information
• Presents key financial information over the past five years • Continues use of existing analysis model (OUS) • Design helps to gain insight into University operations
Slide 3 Page F-24
Slide 4
*Current assets have been restated to estimate the amount of cash that since 2012 is now included in non-current investments.
1.8 1.8
1.4 1.5 1.5
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2010* 2011* 2012 2013 2014
Oregon State University Current Ratio
Current Assests/Current Liabilities
Page F-25
Slide 5
StudentTuition & Fees
Grants &Contracts
AuxiliaryEnterprises Other State Appropriations Non-operating
2010 21% 25% 13% 5% 22% 15%2011 24% 25% 14% 5% 20% 14%2012 26% 25% 14% 5% 16% 14%2013 27% 23% 15% 5% 16% 14%2014 30% 21% 14% 5% 16% 14%
0%
5%
10%
15%
20%
25%
30%
35%
Oregon State University Contribution Margin
Page F-26
Slide 6
Oregon State University Contribution Margin
Fiscal Years 2010 & 2014
Student Tuition & Fees
21%
Grants & Contracts
25%
State Appropriations
22%
Non-operating 15%
Auxiliary Enterprises
13%
Other 5%
2010
Student Tuition & Fees
30%
Grants & Contracts
21%
State Appropriations
16%
Non-operating 14%
Auxiliary Enterprises
14%
Other 5%
2014
Page F-27
Slide 7
Instruction Other Core Support Services andStudent Aid Institutional Support Physical Plant Other
2010 26% 40% 14% 7% 4% 9%2011 27% 38% 15% 7% 4% 9%2012 27% 36% 15% 7% 4% 10%2013 29% 34% 15% 8% 4% 10%2014 31% 32% 15% 8% 4% 10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Oregon State University Expenditures
Fiscal Years 2010 - 2014
Page F-28
Slide 8
Research and Public Service
32%
Instruction 31%
Support Services &
Aid 15%
Institutional Support
8%
Physical Plant 4%
Other 10%
2014
Research and Public Service
40%
Instruction 26%
Support Services &
Aid 14%
Institutional Support
7%
Physical Plant 4%
Other 9%
2010
Oregon State University Expenditures
Fiscal Years 2010 & 2014
Page F-29
Analysis of Key Financial Information to Peer Data
• Presents key financial information comparison to peer data for FY 2013 o FY 2014 data not available o Peer information only available if peer institution has separate audit
• Continues use of existing analysis model (OUS) • Design provides a view of the University’s operations relative
to peer institutions
Slide 9
Page F-30
Slide 10
25.8
21.7
20.4 20.0
16.9
18.7
Peer Average 19.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Student/Faculty Ratio
Calculation: Full-time equivalent (FTE) students /FTE faculty members
Page F-31
Slide 11
1.5 1.7
2.2
1.3
3.6
1.1
Peer Average 2.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Current Ratio
Page F-32
Slide 12
27% 25% 26% 20%
25% 18%
32%
16% 19% 14%
17%
21% 36% 14%
23% 24% 27% 33% 17%
20%
18%
15% 12% 11% 5% 16%
15%
14%
14% 12%
19%
7%
9%
10%
13%
5% 9%
3%
19% 11%
1%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OSU PeerAverage
Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Contribution Ratio
Student Tuition and Fees State Appropriations Grants and Contracts
Auxiliary Enterprises Nonoperating Revenues Other
Page F-33
Slide 13
State $5,576
State $9,632 State
$6,924
State $10,389 State
$8,274
State $15,654
State $6,917
Tuition & Fees $9,492
Tuition & Fees
$11,835 Tuition & Fees
$12,551
Tuition & Fees
$12,810
Tuition & Fees $9,844
Tuition & Fees $7,852
Tuition & Fees
$16,120
$-
$5,000
$10,000
$15,000
$20,000
$25,000
OSU Peer Average Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
State Appropriations and Tuition & Fees per Student FTE
$19,475
$23,199
$18,118
$23,506 $23,307
$15,069
$21,467
Page F-34
Slide 14
$229,851
$309,986
$436,308
$141,559 $151,330 $171,134
Peer Average $242,063
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Grants and contracts revenues per faculty FTE
Page F-35
Slide 15
$9,059
$10,646
$19,026
$8,132
$12,580 $13,618
Peer Average $12,801
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Instruction cost per student FTE
Page F-36
Slide 16
$215,121
$285,223
$343,588
$125,932 $134,040 $142,079
Peer Average $206,172
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Research costs per faculty FTE
Page F-37
Slide 17
$60,623
$102,491 $106,052
$102,559
$45,458
$35,380
Peer Average $78,388
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Academic support costs per faculty FTE
Page F-38
Slide 18
$1,052 $1,159
$3,087
$1,018
$752
$1,075
Peer Average $1,418
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Student services costs per student FTE
Page F-39
Slide 19
$1,177
$1,581
$1,763
$1,055
$1,596
$1,306
Peer Average $1,460
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Student aid costs per student FTE
Page F-40
Slide 20
11.6%
12.5% 11.9%
12.9%
14.8% 14.6% Peer Average 13.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
OSU Arizona UC Davis Iowa State NC State MichiganState
Oregon State University Peer Institutions
Institutional support & operation and maintenance of plant as % of total expenditures
Page F-41
Slide 21
OSU Arizona UC Davis Iowa State NC State MichiganState
PrimaryReserve 17.9% 28.6% 42.6% 43.8% 29.2% 68.1%
Debt Burden 3.2% 5.8% 4.6% 3.8% 2.7% 9.5%
Prim
ary
Rese
rve
Prim
ary
Rese
rve
Prim
ary
Rese
rve
Prim
ary
Rese
rve
Prim
ary
Rese
rve
Prim
ary
Rese
rve
0%
10%
20%
30%
40%
50%
60%
70%
Oregon State University Peer Institutions
Primary reserve & debt burden ratios
Page F-42
Trend Analysis of Specific Financial Metrics
• Presents specific financial metrics including o Metrics for the Debt Policy o Metrics considered industry standard core measures of financial health
• Design provides a view of the University’s financial health
Slide 22
Page F-43
Slide 23
3.5%
3.7%
3.4%
3.2%
3.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2010 2011 2012 2013 2014
Oregon State University Debt Burden Ratio
Calculation: Debt service*/Adjusted Expenses(I) *Debt service & debt excludes State paid debt, example XI-G
(I) Total expenses: Operating expenses & principal and interest paid less depreciation expense
Page F-44
Slide 24
2.2
3.3
4.8
4.4
4.1
0.0
1.0
2.0
3.0
4.0
5.0
2010 2011 2012 2013 2014
Oregon State University Debt Service Coverage Ratio
Calculation: 3 year average net revenues available for debt service/Debt service *Debt service & debt excludes State paid debt, example XI-G
Page F-45
Slide 25
36.5% 35.9% 38.1%
35.1%
41.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
2010 2011 2012 2013 2014
Oregon State University Income Statement Leverage Ratio
Calculation: Debt/Revenues *Debt service & debt excludes State paid debt, example XI-G
Page F-46
Slide 26
121.2%
132.6%
113.5%
125.3%
107.7%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
2010 2011 2012 2013 2014
Oregon State University Viability Ratio
Calculation: Expendable net assets/Debt *Debt service & debt excludes State paid debt, example XI-G
Page F-47
Slide 27
47.8% 49.9%
43.1% 43.6% 43.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
2010 2011 2012 2013 2014
Oregon State University Primary Reserve Ratio
Calculation: Expendable net assets/Operating expenses plus interest expense
Page F-48
Slide 28
10.6%
8.2%
-0.7%
3.6%
6.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2010 2011 2013 2014
Oregon State University Return on Net Assets Ratio
2012
Calculation: Change in net assets/Total net assets
Page F-49
Slide 29
4.4%
2.7%
-6.9%
-3.2% -3.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
2010 2011 2012 2013 2014
Oregon State University Net Operating Revenues Ratio
Calculation: Income(loss) before capital & other/Operating revenues plus non-operating revenues
Page F-50
Slide 30
Oregon State University Core Financial Health Metrics – Graphical Presentation
Page F-51
Questions?
Slide 31
Page F-52