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.