Text of Messiah College FY13 Financial Plan FY13 ParametersJanuary 4, 2012
Messiah College FY13 Financial Plan FY13 ParametersJanuary 4, 2012
FY13 Budget Forum Budget Methodology Revenue Sources Expense Drivers Financial Planning Q & A
Budget Methodology Budget now focuses on cash flows and controllable expenditures. Operating budget no longer includes depreciation, a non-cash expenditure. Budget includes capital spending and total debt service. Total debt service includes principal and interest. Depreciation funding targeted at 70%.
Revenue Sources Undergraduate Enrollment Tuition and Fee Increases Financial Aid (Discount Rate) Auxiliary (Room, Board, Campus Store) Graduate Programs Endowment Other (Conferences, Camps etc.) Gifts UG Net Tuition & Fees (NTR) (>1/2 of Total Revenue) (=1/4 of Total Revenue)
Pricing Strategy Middle of the pack relative to Peer Group Price sensitivity - what will the market bear? Sufficient increase to meet revenue needs 3.9% increase to comprehensive fee proposed (slightly higher than last year)
HEPI Higher Education Price Index CPI Consumer Price Index
Graduate Programs Projected Operating Results (in 000s) FY13FY14FY15 FFTE 211 244 270 Revenue$2,126$2,516$2,892 Compensation($1,569)($1,904)($2,054) Direct Operating Expenses($297)($300)($306) Gross Margin$260$312$531 Includes projections for the following programs: Art Education Conducting Counseling Education Higher Education Youth & Young Adult Ministries
Other Revenue Auxiliary Revenue (Dining, Housing, Campus Store) fee and revenue increases average 4.0% ($713,000) Endowment, and federal and state aid appropriations increased modestly ($225,000) Modest projected increases in other revenue sources (gifts, summer conferences, etc: $175,000)
Revenue Summary (in 000s) FY13 FY12 $ % Budget Change Net Tuition and Fees*$50,744$50,142$6021.2% Endowment Income 6,085 5,894 1913.2% Interest & Trust Income 555 617 (62)-10.0% Gov't Appropriations 741 727 142.0% Gifts 1,359 1,294 655.0% Other Revenue 4,448 4,338 1102.5% Auxiliary Enterprises 22,489 21,670 8193.8% Total Revenue$86,421$84,682$1,7392.1% * Includes graduate programs.
Sensitivity Parameters Approximate Sensitivity Parameters Estimated value of a 1% change FY12 data 1% tuition$610,000 (net of fin. aid) 1% FTFTFr fin aid$225,000 (i.e., 44% to 45%) 1% Enrollment$425,000 1% R&B$155,000 1% All Salaries$400,000 (w/benefits) 1% faculty$155,000 (w/benefits) 1% staff/admin$212,000 (w/benefits) 1% student$33,000 1% variable costs$113,000
Competitor Institutions Calvin College Cedarville University Eastern Mennonite University Eastern University Elizabethtown College Geneva College Gordon College Grove City College Houghton College Lebanon Valley College Liberty University Roberts Wesleyan College Susquehanna University Wheaton College York College
Glossary of Terms Higher Education Price Index (HEPI) Measures increases in cost of goods and services purchased by institutions of higher education. Compensation is a major factor. Gross Tuition Price charged to a student for attendance. Net Tuition Price to be paid by the student/family after aid. Cost Resources expended by the institution to provide the full educational experience to each student. Net Tuition Revenue Tuition and fees less financial aid.
CPI-W versus Wage & Salary Increases Prior Multi-Yr Wg & Sal Incr3-yr5-yr Faculty Base5.3%11.2% Fac avg w/step/promo/ret.**7.3%15.9% Assistant Professor10.2%20.7% Associate Prof (w/steps) ***9.3%19.1% Full Professor8.5%17.6% Prior 3 YRPrior 5 YR CPI-W 5.6%12.1% Est.