Feedback and Response

2.11.1  

The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services.

The member institution provides the following financial statements: (1) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a systemwide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (2) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the change in unrestricted net assets attributable to operations for the most recent year; and (3) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board. Audit requirements for applicant institutions may be found in Commission policy "Accreditation Procedures for Applicant Institutions." (Financial Resources)


Findings of the Off-Site Reaffirmation Committee

The institution has demonstrated that it has a sound financial base. This has been accomplished against a backdrop of a ten percent decline in unrestricted revenue since fiscal 2004. The institution has taken steps to reduce its expenditures and become more efficient. This was essential due to financial loss, and enrollment loss, due to natural disaster. Revenue growth in the five most recent years has been supported by the ability to raise tuition as authorized in the LA Grad Act. The institution also enjoys the support of an endowment fund of $20.7 million, and it participates in a state program to match private gifts.

Total net assets have declined from $143.8 million in fiscal 2011 to $111.4 million in fiscal 2013. Although net assets have declined, they remain adequate to serve as a backstop in helping the institution to support the mission and scope of its programs and services.

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 minutes of August 20, 2013 meeting. There is evidence that good planning precedes the budget, and that planning is tied to institutional Goals. During the 2013-14 year, a committee of peers was created to advise budget reduction and reallocation, known as the Cost Containment and Revitalization Committee. It serves as a recommending body to senior administration.

The institution did not provide the most recent financial audit and management letter. According to the Compliance Report, those items will be available at the end of calendar year 2014.


Response and Actions Taken

The University of New Orleans received our audited financial statements from the Louisiana Legislative Auditors on December 17, 2014. The accompanying Management Letter was issued on December 24, 2014.

Supporting Documents

Document Description
Document IconFR_LLA_ULS_Financial_Report_FYE_06_30_2014LLA_ULS_Financial_Report_FYE_06_30_2014
Document IconFR_LLA_UNO_Management_Letter_2014LLA_UNO_Management_Letter_2014