The University of New Orleans has a sound financial base and has demonstrated financial stability to support its mission. Its financial performance reflects stability and an effective use of available resources. A Financial Statement Audit is completed annually by the Louisiana Legislative Auditor for each of the four Management Boards in Louisiana. The Louisiana Legislative Auditor also prepares a Management Letter for each member institution annually.
Financial Statement Audits and Management Letters for the most recent three year period are provided. As of June 30, 2011, the University of New Orleans was a component unit within the Louisiana State University (LSU) System; thus, the 2011 Financial Statement Audit is focused on the LSU System which included the University of New Orleans at that time. Note that the report for the LSU System is titled “Financial Statement Report”. The Management Letter for 2011 is also provided.
Effective December 2011, the University of New Orleans transitioned from the LSU System to the University of Louisiana System Board of Supervisors (ULS). Financial Statement Reports/Audits (note that both terms are used by the University of Louisiana System Board of Supervisors) are provided for 2012 and 2013. The University of New Orleans Management Letter authored by the Louisiana Legislative Auditor for the years 2012 and 2013 are provided.
There were no reportable findings for the years ending June 30, 2011 and June 30, 2012. The most recent Management Letter for the year ending June 30, 2013 does include one finding. The President of the University of New Orleans, together with the Vice President for Business Affairs and the Assistant Vice President for General Accounting and Procurement, submitted a corrective action plan in response to the audit finding and recommendations.
Sound Financial Base
The University of New Orleans demonstrates financial stability in support of the mission of the institution and the scope of its programs and services. Two primary sources of revenue fund the day-to-day operations of the University: 1) unrestricted State Appropriations and 2) tuition and fees. A ten year period of funding is provided to support this response. During the period 2003-2004 through 2012-2013, total unrestricted revenues decreased from $114,047,822 to $102,922,935, or 10%. This includes a loss in enrollment of 26% between 2004-2005 and 2005-2006 in the immediate aftermath of Hurricane Katrina. In 2006, the University received permission from the LSU Board of Supervisors to declare financial exigency as a result of the immediate and significant loss of enrollment post-Katrina and the attendant loss of tuition revenue. The highlight of that plan included: reduction and/or elimination of a limited number of academic programs; a decline in the number of faculty reflecting a lower student population; and administrative and workload reorganization to achieve significant savings. Between 2005-2006 and 2012-2013, total revenues increased by 17%. Unrestricted self-generated revenues have shown an increase in the last ten fiscal years in the amount of $4,185,294 (7%), while state support from the same period shows a dramatic decline of $15,310,181 (29%). However, within the last five fiscal years, unrestricted self-generated revenues have shown an increase of $13,929,126 (27%), partially due to the LA GRAD Act which allowed the University of New Orleans to increase its tuition by 5% beginning in FY2011-12, and 10% each year thereafter. Whereas, state support for the same period shows a decline of $23,466,631 (45%). student tuition and fees constitute approximately 90% of unrestricted self-generated revenues. Specific details regarding unrestricted revenues for this 10-year period are provided in the University of New Orleans Unrestricted Revenues of University by Source 2003-04 thru 2012-13.
During the past five years, with the exception of 2010-2011 and 2011-2012, University expenditures and transfers were parallel to realized revenues. Educational and general expenditures totaled a sum of $121,460,440 in 2008-2009 and $102,922,935 in 2012-2013, or a decrease of 15%. The University was able to make the necessary reductions primarily through faculty and civil service retirement incentives, hiring freezes and spending freezes, and reallocating existing resources while keeping the academic structure intact as much as possible and continuing to serve our mission as an urban research university. Specific details regarding a breakdown of unrestricted educational and general expenditures by function are provided in the University of New Orleans Educational and General Expenditures 2004-2005 to 2012-2013 report.
The University’s endowment-fund balance for the year ended June 30, 2013 was $20,677,499, market value. The University of New Orleans participates in the Louisiana Board of Regents Eminent Scholars and Endowed Professorships Program. This Program provides state funds to colleges and universities for the purpose of matching private donations. On May 18, 2012, the University of New Orleans and the University of New Orleans Foundation entered into a Funds Management Agreement. Under this agreement, the Foundation renders management and investment services to the University and also acts as the depository for these state-matching funds. Funds received by the University through this Program are invested by the Foundation in accordance with guidelines promulgated by the Louisiana Board of Regents. Endowments managed through the Foundation as of June 30, 2013, represent 90% of the total portfolio, or $18,680,806, market value, which is reflected in the UNO Schedule B-3-2013, Schedule of Changes of Endowment Fund Balances. UNO receives benefit of the 60% private donor match which is managed by the Foundation. The overall endowment pool managed by the University of New Orleans Foundation at market value is $67,514,288 for the period ending June 30, 2013.
Additionally, six endowments that were managed by the University as of June 30, 2013, with total market value of $806,746, have since been transferred to the University of New Orleans Foundation for management purposes.
Restricted and Auxiliary revenues lend support to the overall mission of the University. Specific details regarding restricted and auxiliary revenues for the period 2003-2004 through 2012-2013 are provided in Restricted Revenues 2003-2004 through 2012-2013.
The University prepares annual financial statements consistent with generally accepted accounting principles, as prescribed by the Governmental Accounting Standards Board (GASB). The most recent Statement of Net Assets as of June 30, 2013 and the Statement of Revenues, Expenses, and Changes in Net Position as of June 30, 2013 and the Statement of Revenues, Expenses, and Changes in Net Position as of June 30, 2013 are provided.
Every member campus of the University of Louisiana System produces an annual published budget document in a format prescribed by the Louisiana Board of Regents and the University of Louisiana System Board of Supervisors Office. The annual operating budget for the University is approved by the University of Louisiana System Board of Supervisors. The 2013-2014 budget was approved and submitted by the University of Louisiana System Board of Supervisors and approvals are noted in the Board meeting minutes of August 20, 2013 for the FY2013-2014 operating budget. The 2013-2014 budget document for the University of New Orleans campus is available in hard-copy format in the University’s Earl K. Long Library, as well as in the University’s intranet Budget Office SharePoint site. Budget summary totals in the format specified by the Board of Regents are provided for the last three years (2011, 2012, and 2013). Budget summary totals for fiscal years 2008-2009 through 2013-2014 are available on the Office of Business Affairs website as well as the University Intranet.
In general, administrative units within the University begin the budget planning process for the next fiscal year during the spring semester, with the assumption of a stand-still budget. During the fiscal year, departments submit requests for additional funding for various purposes such as new positions, salary adjustments, projects, etc. These requests are submitted through the chain of command with final approval from the Vice President of Business Affairs and Provost or President. At every stage of the budget process, the University’s Office of Business Affairs has the primary responsibility for implementation.
A University Budget Committee participates in the budget planning process. The structure used for the budget committee has evolved since the transition of the University to the University of Louisiana System Board of Supervisors management board. In preparation for the FY 2012-2013 budget, two committees were put in place, one for academic programs and the other for non-academic programs to determine strategies for reducing the budget. Each committee was presented with a summary of the University's unrestricted operating budget, to include the adjustments between FY2011-2012 and FY2012-2013 and a history of enrollment. During the 2013-14 year, a single committee was created to advise budget reduction and reallocation, known as the Cost Containment and Revitalization Committee. The Committee included representation from faculty, staff and administration and was presented with a summary of the University's unrestricted operating budget, to include adjustments between FY2012-2013 and FY2013-2014, a five-year history of the University's budget and expenditures, and a history of enrollment. The FY2014-2015 budget preparation memo emailed to the Vice Presidents included a request to complete the spreadsheets for budget submission as well as an opportunity to submit budget requests for FY2014-2015 using a Budget Planning Template for FY2014-2015. The membership of the Budget Committee will be adjusted in academic year 2014-15 to allow a more thorough and widespread understanding of how our revenues are generated. Membership will include: two representatives from Enrollment Management, one representative from the Office of Business Affairs, two deans, two academic department chairs, two Faculty Senate representatives, and the Staff Council president. The Budget Committee will be co-chaired by the Provost/Vice President of Academic Affairs and the Vice President of Business Affairs.
The University of New Orleans’ operating budget is preceded by sound planning and is subject to sound fiscal procedures. The Office of Business Affairs is responsible for monitoring spending within the operating budget. It is also required to prepare and submit to the Budget Committee, on a routine basis, a report of the University’s net budget position. An example of a Budget Status Report created during the 2013-14 fiscal year on an ad-hoc basis is attached.Also, the University of Louisiana System requires institutions to provide quarterly financial reports on operating revenue and expenditures, as well as other major funding sources.
The University of New Orleans is currently in non-compliance of Core Requirement 2.11.1 because the University will not be able to submit the audit for the most recently completed fiscal year by the SACSCOC deadline of October 21, 2014. As soon as the completed audit is received by the University, it will be forwarded to the Commission. The anticipated date for the audit is by the end of the calendar year 2014.
|ACT_419||Legislation moving UNO to University of Louisiana System|
|Ad_Hoc_Budget_Report||Example of Ad Hoc Budget Report from 2013-14 Year|
|BOR_Emi_Sch_End_Pro_Program||Louisiana Board of Regents Eminent Scholars and Endowed Professorships Programs|
|BOR_Summary_2013||Budget Summary for 2013 in Board of Regents Format|
|Budget_Planning_Template||Tool for Units to Submit Annual Budget Requests|
|Budget_Preparation_Memo||Memo Providing Directions for Departments to Submit Annual Budgets|
|Budget_Presentation_2012_2013||Fiscal Year 2012-2013 Operating Budget Overview|
|CCRC_present_budget_overview||Presentation to Cost Containment and Revitalization Committee on UNO Budget|
|Cost_Contain_Revit_Minutes||Sample Minutes of Cost Containment and Revitalization Committee|
|Fin_Services_Budget||Dissemination of University of New Orleans Budget Summaries on Office of Business Affairs Website|
|Funds_Mgt_Agree||Funds Management Agreement Between University of New Orleans and the University of New Orleans Foundation|
|GASB_Website||Governmental Accounting Standards Board Website|
|HB1171Act741_GRAD Act_I||Grad Act|
|LLA_Fin_Statement_2011||Louisiana Legislative Auditor Financial Statement Audit 2011|
|LLA_Fin_Statement_2012||Louisiana Legislative Auditor Financial Statement Audit 2012|
|LLA_Fin_Statement_2013||Louisiana Legislative Auditor Financial Statement Audit 2013|
|LLA_Mgt_Letter_2011||Louisiana Legislative Auditor Management Letter 2011|
|LLA_Mgt_Letter_2012||Louisiana Legislative Auditor Management Letter 2012|
|LLA_Mgt_Letter_2013||Louisiana Legislative Auditor Management Letter 2013|
|Quarterly_Financial_Reports||Quarterly Report of Budget and Actual Revenues and Expenditures|
|UL_System_minutes_08_20_2013||Example of UL System executing financial management|
|UNO_Budget_Summ_Intranet||Dissemination of University of New Orleans Budget Summaries on UNO Intranet (Sharepoint)|
|UNO_Ed_Gen_Expen_2004_2013||Educational and General Expenditures for University of New Orleans 2004-2013|
|UNO_Restr_Rev_2004_2013||Restricted Revenues for University of New Orleans 2004_2013|
|UNO_Sch_B_3_2013||Schedule of Changes of Endowment Fund Balances|
|UNO_Sharepoint_Operating_Budget||University of New Orleans Operating Budget Disseminated on Intranet|
|UNO_State_Net_Assets_2013||University of New Orleans Statement of Net Assets 2013|
|UNO_State_Rev_Exp_Net_Pos_2013||University of New Orleans Statement of Revenue, Expenses, and Changes in Net Position 2013|
|UNO_Unrest_Rev_2004_2013||Unrestricted Revenues for University of New Orleans by Source 2004-2013|