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�Financial Update

Eastern Kentucky University
Board of Regents
June 20, 2015

�FY 16 vs FY 15 Operating Revenues
FY 16

FY 15

YTD Activity

YTD Activity

Differen ce

Other Sources

158,288,143
66,673,100
5,148,818
1,182,578
5,993,122
5,968,833

148,396,947
68,033,800
4,747,485
1,098,760
6,184,797
6,857,826

9,891,196
(1,360,700)
401,333
83,818
(191, 675)
(888,993}

Total E &amp; G Revenues

243,254,594

235,319,615

7,934,979

28,834,486

26,481,699

2,352,787

272,089,080

261,801,314

10, 287,766

May 31, 2016

Tuition &amp; Fees
State Appropriations
Government Grants &amp; Contracts
Foundation Transfers, Private Grants &amp; Contracts
Sales/Services Educational Activities

Total Auxiliary Revenue
Total Revenues

�FY 16 vs FY 15 Operating Expenditures
May 31, 2016

Academic Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
0 &amp; M of Physical Plant
Student Financial Aid
Total E &amp; G Expenditures
Total Auxiliary Expenditures
Total Expenditures

FY 16

FY 15

YTD Activity

YTD Activity

88,641,620
135,337
2,377,059
25,661,648
18,857,686
33,049,984
23,389,565
35,450,498

88,754,026
97,330
2,354,371
25,492,894
17,699,805
30,640,236
22,052,865
28,826,640

(112,406)
38,007
22,688
168,754
1,157,881
2,409, 748
1,336,700
6,623, 858

227,563,397

215,918,167

11,645,230

27,439,805

22,732,504

4,707,301

255,003,202

238,650,671

16,352,531

Difference

�Net Operations:

FY 16

FY 15

YTD Activity

YTD Activity

Overall Net:

17,085,878

23,150,643

(6,064,765)

Education &amp; General:

15,691,197

19,401,448

(3,710,251)

Auxiliaries:

1,394,681

3,749,195

(2,354,514)

May 31, 2016

Difference

�Net Operations without Project
Funding:

FY 16

FY 15

YTD Activity

YTD Activity

Revised Overall Net:

24, 218,230

25,638,524

Education &amp; General:

22,823,549

21,889,329

934,220

Auxiliaries:

1,394,681

3,749,195

{2,354,514)

May 31, 2016

Difference

{1,420,294)

�Operating Revenues vs Budget

YTD Percent of Budget

FY 16

FY 15

May 31, 2016
Total E &amp; G Revenues

99.86%

101.59%

Total Auxiliary Revenue

110.18%

122.94%

Total Revenues

100.86%

103.41%

�Operating Expenditures vs Budget

YTD Percent of Budget

FY 16

FY 15

May 31, 2016
Total E &amp; G Expenditures
Total Auxiliary Expenditures
Total Expenditures

86.44%

84.27%

104.85%

105.60%

88.10%

85.92%

�Comments &amp; Questions

�Eastern Kentucky University
Summary of Revenues and Expenditures - All Funds
2016-17 Operating Budget

REVENUES BY SOURCE
2016-17 Proposed Budget

Tuition and Class Fees
State Appropriations
Government Grants and Contracts
Educational Sales and Services
Other Sources

Educational and
General
159,954,891
64,972,279
5,059,750
5,675,916
7,460,250

Auxiliary Revenue
Total Revenues

243,123,086

Auxiliary Fund

Restricted Fund

1,658,691
85,446,324
1,327,337
984,524
23,230,099
27,200,651

85,446,324

2016-17 Proposed
Budget To ta l
161,613,582
64,972,279
90,506,074
7,003,253
8,444,774
23,230,099
355,770,061

2015-16 Approved
Budget Total
154,211,909
68,033,800
90,255,474
7,630,192
6,590,979
22,007,119
348,729,473

Difference
$

%

7,40 1,673
(3,061,521)
250,600
(626,939)
1,853,795
1,222,980
7,040, 588

4.80%
-4.50%
0.28%
-8.22%
28.13%
5.56%
2.02%

EXPENDITURES BY PROGRAM CLASSIFICATION
2016-17 Proposed Budget

Instruction
Research
Public Service
Academic Support
Student Services

Institutional Support

Educational and
General
95,192,305
154,904
4,563,067
25,751,385
21,9 77,817
37,804,389

Auxiliary Fund

Restricted Fund

2016-17 Proposed
Budget Total

2015-16 Approved
Budget Total

Difference
$

%

95,192,305
154,904
4,563,067
25,751,38 5
21,977,817
37,804,389

93,685,461
174,904
4,320,032
24,702,144
21,275,420
38,612,917

1,506,844
(20,000)
243,035
1,049,240
702,397
(808, 528)

1.61%
-11.43%
5.63%
4.25%
3.30%
-2.09%

21,572,503
36,106,715
27,200,651
85,446,324
35S, 770,061

23,350,147
31,321,958
25,840,165
85,446,324
348,729,473

(1,777,643)
4,784,757
1,360,486
0
7, 040,588

-7.61%
15.28%
5.27%
0.00%
2.02%

Operation and Maintenance of

Plant
Scholarships and Fellowships

21,572,503
36,106,715
27,200,651

Auxiliary Enterprises
Restricted Funds
Total Expenditures

243,123,086

27,200,651

85,446,324
85,446,324

�Eastern Kentucky University
Summary of Revenues and Expenditures - Current Unrestricted
2016-17 Operating Budget

REVENUES BY SOURCE
2016-17 Proposed Budget
Educational and
General

Tuition and Class Fees
State Appropriat ions
Government Grants and Contracts
Educational Sales and Services
Other Sources

159,954,891
64,972,279
5,059,750
5,675,916
7,460,250

AuKiliary Revenue

Total Revenues

243,123,086

AuKiliary Fund

2016-17 Proposed

2015-16 Approved

Budget Total

Budget Total

Difference

1,327,337
984,524
23,230,099

161,613,582
64,972,279
5,059,750
7,003,253
8,444,774
23,230,099

154,211,909
68,033,800
4,809,150
7,630,192
6,590,979
22,007,119

$
7,401,673
(3,061,521)
250,600
(626,939)
1,853,795
1,222,980

27,200,651

270,323,737

263,283, 149

7,040,588

1,658,691

%
4.80%
-4.50%
5.21%
-8.22%
28.13%
5.56%
2.67%

EXPENDITURES BY PROGRAM CLASSIFICATION
2016- 17 Proposed Budget
Educational and
General
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operation and Maintenance of Plant
Scholarships and Fellowships

243,123,086

2015-16 Approved

Budget Total

Budget Total

Difference

27,200,651

95,192,305
154,904
4,563,067
25,751,385
21,977,817
37,804,389
21,572,503
36,106,715
27,200,651

93,685,461
174,904
4,320,032
24,702,144
21,275,420
38,612,917
23,350,147
31,321,958
25,840,165

$
1,506,844
(20,000)
243,035
1,049,240
702,397
(808,528)
(1,777,643)
4,784,757
1,360,486

27,200,651

270,323,737

263,283,149

7,040,588

95,192,305
154,904
4,563,067
25,751,385
21,977,817
37,804,389
21,572,503
36,106,715

AuKiliary Enterprises
Total EKpenditures

AuKiliary Fund

2016-17 Proposed

%
1.61%
-11.43%
5.63%
4.25%
3.30%
-2.09%
-7.61%
15.28%
5.27%
2.67%

�Eastern Kentucky University
Summary of Expenditures By Natural Classification
2016-17 Operating Budget

EXPENDITURES

2016-17 Proposed Budget
Educational and
General
Salaries and Wages
Employee Benefits
Maintenance and Operations
Capital

Total Expenditures

108,153,966
45,476,251
86,180,176
3,312,694
243,123,086

Auxiliary Fund

Restricted Fund

7,060,075
3,569,565
16,571,011

15,797,239
5,664,375
63,984,710

27,200,651

85,446,324

2016-17 Proposed Budget
Educational and
General

Salaries and Wages
Employee Benefits

Instruction

Maintenance and Operations
Capital
Instruction Total

Research

Mai ntenance and Operations

Research Total
Salaries and Wages
Employee Benefits

Public Service

Maintenance and Operations
Capital
Public Service Total
Salaries and Wages

Academic Support

Employee Benefits
Maintenance and Operations

Academic Support Total
Salaries and Wages
Student Services

Employee Benefits
Maintenance and Operations

Student Services Total
Salaries and Wages
Institutional Support

Employee Benefits
Maintenance and Operations

Summary of Expenditures by Na tural Classification
2016-17 Operating Budget

Auxiliary Fund

Restricted Fund

2016-17 Proposed

2015-16 Approved

Budget Total

Budget Total

131,011,279
54,710,191
166,735,897
3,312,694
355,770,061

2015-16 Approved

Budget Total

Budget Total

59,509,177
21,973,509
13,170,120
539,500
95,192,305
154,904
154,904
1,212,072
609,459
2,741,537

4,563,067
15,130,395
6,447,377
4,173,613
25,751,315
11,290,425
4,331,503
6,355,890
21,,n,111
12,092,650
6,657,100
16,281,446

4,563,067
15,130,395
6,447,377
4,173,613
25,751,385
11,290,425
4,331,503
6,355,890
21,9n,111
12,092,650
6,657,100
16,281,446

$

130,468,378
48,916,644
166,109,738
3,234,714
348,729,473

2016-17 Proposed

59,509,177
21,973,509
13,170,120
539,500
95,192,305
154,904
154,904
1,212,072
609,459
2,741,537

Difference

60,455,144
19,529,892
12,357,590
1,342,836
93,685,461
174,904
174,904
1,103,901
544,984
2,651,147
20,000
4,320,032
14,734,042
5,736,790
4,231,312
24,702,144
10,967,310
3,846,612
6,461,498
21,275,420
12,575,659
6,094,799
18,287,581

542,901
5,793,547
626,159
77,980
7,040,588

Differe nce

$

(945,967)
2,443,617
812,530
(803,336)
1,506,844
(20,000)
(20,000)
108,170
64,475
90,390
(20,000)
243,035
396,353
710,586
(57,699)
1,o49,2AO
323,115
484,890
(105,608)
702,397
(483,009)
562,301
(2,006,136)

�2016-17 Pro posed Budget

Capital
Institutional Support Total
Salaries and Wages
Operation and
Employee Benefits
Maintenance of Pla nt
Maintenance and Operations
Capital
Operation and Maintenance of Plant Total
Salaries and Wages
Scholarships and
Employee Benefits
Fellowships
Maintenance and Operations
Scholarships and Fellowships Total
Salaries and Wages
Auxiliary Enterprises
Employee Benefits
Maintenance and Operations
Auxiliary Enterprises Total
Salaries and Wages
Restricted Funds
Employee Benefits
Maintenance and Operations
Restricted Funds Total
Total Expenditures

Summary of Expenditures by Natural Classification
2016-17 Operating Budget

Educational a nd
General
2,773,194
37,804,389
7,127,755
5,442,973
9,001,776

Auxiliary Fund

Restricted Fund

2,773,194
37,804,389
7,127,755
5,442,973
9,001,776

21,572,503
1,791,493
14,332
34,300,891
36,106,715
7,060,075
3,569,565
16,571,011
27,200,651

243,123,086

2016-17 Proposed
Budget To tal

27, 200,651

2

15,797,239
5,664,375
63,984,710
85,446,324
85,446,324

21,572,503
1,791,493
14,332
34,300,891
36,106,715
7,060,075
3,569,565
16,571,011
27,200,651
15,797,239
5,664,375
63,984,710
85,446,324
355,770,061

2015-16 Approved
Budget Tot al
1,654,878
38,6U,917
6,840,990
4,602,385
11,689,772
217,000
23,350,147
1,791,493
16,123
29,514,342
31,321,958
6,202,599
2,880,684
16,756,882
25,840,165
15,797,239
5,664,375
63,984,710
85,446,324
348,729,473

Diffe rence
$
1,118,316
(808,5281
286,764
840,588
(2,687,996)
(217,000)
11,1n,643)
0
(1,792)
4,786,549
4,784,757
857,475
688,881
(185,871)
1,360,486
0
0
0
0
7,040,588

��Introduction

• Scope of Services
• The Client Service Team
• Audit Approach
• Actions to Promote Smooth Audit Process
• New Accounting Pronouncements
• Other

©2016 Crowe Horwath LLP

2

�Scope of Services

•
•
•
•
•
•
•
•
•

Report on Financial Statements, Including Federal Awards Programs
Management Recommendation Letter
Communication Letter to Those Charged with Governance
Report on Compliance with House Bill 622 (KRS 164A.555 to 164A.630)
Representation Letter
Report on Lease Law Compliance
Subsequent Events Letter
Audit of WEKU-FM
NCAAAgreed-Upon Procedures

©2016 Crowe Horwath LLP

3

�The Client Service Team

• Pete Ugo - Partner
• Alice Cowley - Manager
• Kristina Judd - Senior (In-charge)
•
•
•
•

Stephanie Ayers - Staff
Sue Horn - IT Senior Manager
Nicholas Engler - IT Manager
Brian Archambeault -Assurance Professional Practice Review

© 2016 Crowe Horwath LLP

4

�Audit Approach

Planning Activities

• Review of preliminary financial information
• Discussions with management:
• Risk of fraud in financial statements
• Internal controls
•
•

Entity level
Account level

• Business strategies and risks
• Significant transactions
• Audit issues

• Determine materiality and preliminary risk assessments
• Develop audit plan and timeline
• Coordination with component unit (Foundation) auditors
• Prepare request for schedules and information
• Frequent interaction outside of audit fieldwork
• Significant transactions
• Emerging issues
• New accounting guidance
©2016 Crowe Horwath LLP

5

�Audit Approach (continued)

Interim Fieldwork
c

Document key business systems and processes
Test and evaluate internal controls, including corroboration of entity level and account level
controls

, Review Board and Committee minutes
Confirmations
• Perform SAS 99 procedures
e

Update custom audit programs

• Perform testing on selected accounts
• Perform testing of student financial aid
• Perform testing on other major programs

©2016 Crowe Horwath LLP

6

�Audit Approach (continued)

Final Fieldwork

• Complete open items from interim
• Perform remaining SAS 99 procedures
• Test account reconciliations and balances
• Review significant or unusual transactions and events
• Complete testing of student financial aid and other major federal award programs
• Obtain confirmations, representations and attorney letters
• Draw conclusions based on procedures performed
• Prepare representation letter
• Review the draft of the audit report
• Draft the A-133 report, management recommendation letter and SAS 114 letter

©2016 Crowe Horwath L LP

7

�Actions to Promote Smooth Audit Process

• Clear Understanding of Audit Schedule
•
•
•
•
•

Planning meeting - May 16, 2016
Interim fieldwork - May 16 through May 20, 2016
Student Financial Aid testing - week of July 25, 2016
Final fieldwork -August 8 through August 23, 2016
Completion of audit by September 2016
•
•

Audit Committee meeting
Issuance of final reports and communications (report due to APA/State by October 3, 2016)

• WEKU-FM - fieldwork the week of November 7, 2016 (CPB report due by November 30, 2016)
• NCAA-fieldwork the week of December 12, 2016 (due date of January 15, 2017)

• Utilization of Crowe Information Resource Tracker (CiRT)
• Effective Coordination of our Collective Team
• Board and Committee
• Communication
• Input on audit risks

©2016 Crowe Horwath LLP

8

�New Accounting and Auditing Pronouncements

Effective for year ended June 30, 2016
• Office of Management and Budget ('Super Circular') - Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards."
• GASS Statement No. 72 , Fair Value Measurement and Application
• GASS Statement No. 73, Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68
• GASS Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for
State and Local Governments
• GASS Statement No. 79, Certain External Investment Pools and Pool Participants

© 2016 Crowe Horwath LLP

9

�New Accounting and Auditing Pronouncements (continued)

Effective for year ended June 30, 2017
• GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans
• GASB Statement No. 77, Tax Abatement Disclosures
• GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined
Benefit Pension Plans
GASB Statement No. 80, Blending Requirements for Certain Component Units
• GASB Statement No. 82 , An Amendment of GASB Statements No. 67, No. 68 and No. 73
Effective for year ended June 30 , 2018
• GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions
• GASB Statement No. 81 , Irrevocable Split-Interest Agreements

©201 6 Crowe Horwath LLP

10

�"" Crowe Horwath.

Thank you
Pete A. Ugo, CPA
Partner

Phone +1 317.208.2509
Pete.ugo@crowehorwath.com

In accordance wtlh a pplicable p,olesS1onal standards, some firm

servicn may not be available to attest dIents

This matenal Is foi informabonal purposes onty and should not be construed as fmanctal or legal advice PIMse seek guidance specrf1c to your Ofganization from qualified advis ers In your 1urrsdlct1on

O 2016 Crowe Ho,wath LLP an mdePfl:ndent member of C1owe Horwath !nternatJonal

11

�14:13 Friday, December 2. 2016

i:: II -,
Undergraduate
Full-time

Undergraduate
Part-time

Graduate
Full-time

Graduate
Part-time

Full-Time Equivalent
(Standard FTE)

11010

3283

812

1776

13508.33

FTE Standard = Total Full-time Head Count(UG+GR) + 1/3 of total part-time headcount(UG+GR)
r-

II

6

Graduate
Full-time FTE

Graduate
Part-time FTE

Undergraduate
Full-time FTE

Undergraduate
Part-time FTE

Full-Time Equivalent
(FTE Total)

812

1045.22

11010

1612.04

14479.26

FTE is 1 for each undergrad and grad student having a minimum of 12 and 9 credit hours respectively
Undergrad and grad students with less than 12 and 9 credit hours respectively, FTE = cr_hrs/12 (UG);cr_hrs/9 (GR)

FTE CPE(Most appropriate one to consider as FTE) - Fall 2016

Total Credit Hours
Undergraduate

Total Credit Hours
Graduate

177627

16184

Headcount

CPE Undergraduate
FTE

CPE Graduate
FTE

CPE
Full-Time Equivalent
(FTE)

219

11841 .8

1348.67

13409.47

Total enrolled credit hours for the term are classified into graduate and undergraduate except for certain programs like Doctoral. Phannacy..etc which are included
as headcount basis .
CPE FTE = Total GR Credit Hours/12 + Total UG Credit Hours/15 + Headcount of Doctoral Programs

f-TE IPEDS Fall 2016
Undergraduate
Full-time

Undergraduate
Part-time

Graduate
Full-time

Graduate
Part-time

IPEDS
Full-Time Equivalent
(FTE)

11010

3283

812

1776

13789.21

FTE IPEDS = Total Full-time Head Count(UG+GR) + Total part-time headcount(UG}*0.403543 + Total part-time headcount(GR}*0.361702

FTE = Graduate Credit Hours/9 for GR_CR_HRS &lt; 9

1

�Board of Regents Meeting
June 2016

CJS/FSE Presentation

£KU

Associate Professor / FPSET Prognm Coordinator
Department of Fire Protectioa and Paramedidne Sciences
C
ofJustice and

1973-Department of
Fire Prevention &amp;
Control formed

2007- online degree
offerings began

l
l
mmllllllmallmmlllmllllll~
l
l
1984-combined into
new Dept. of Loss
Prevention &amp; Safety

2010-split into 3 BS degree programs

-Fire, Arson and Explosion Investigations
-Fire Protection &amp; Safety Engineering Tech
-Fire Protection Administration

1

�Board of Regents Meeting
June 2016

. Fortune 500 companies

CJS/FSE Presentation

. Every major FD in the

- Siemens, State Farm, UPS,
U.S.
Disney, Liberty Mutual,
. Consulting firms
Travelers Ins., Duke
Energy, ConAgra, NRG
- Jensen Hughes,
Energy, Amazon, General
Scientific Experts
Motors, Chrysler, Georgia
Analysis, Unified
Pacific, Kia, Marathon Oil,
. Military
Ford, General Motors
- EOD, investigative,
. International
general fire
- Saudi Aramco, Oman Oil,
G4S,NFPA

I

External Accreditation
. All 3 degree programs are accredited
by the International Fire Service
Accreditation Congress (IFSAC).
. The FPSET degree received
accreditation by the Accreditation
Board for Engineering and
Technology (ABET)
- Making it the second in the world to
have its on campus degree
accredited and the first in the world
to be accredited online.

E'l9,n•or1r,,g
Te,chno ogy

A a ET

Accreditation
ComfT"11110n

2

�Board of Regents Meeting
June 2016

CJS/FSE Presentation

Present - Enrollment Growth
Total FSE Registrations: Campus and Online
1600

+_40°%
1400
1200
~ 1000

.2

~

..

"'
·;;,

/

--

7

800

Ir 600
400
200

2008-2009 2009-2010 2010-2011

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Academic Year

Present - Faculty
. Currently the program employs
- 6 faculty members (1 open position frozen)
- 1 instructor
- 1 lab coordinator
"

.

..... •~

'-'

...

,f " ., t

3

�Board of Regents Meeting
June 2016

CJS/FSE Pres entatio n

Teaching Excellence
. Faculty have consistently won awards for
teaching excellence:
• 10 Golden Apple Awards
• "Top 10 Fire Science Instructors in the South"
• " Top 15 Arson Investigation Professors"

. Regularly requested to speak at national and
international conferences
- All 50 states
- Australia, Canada, China, Jamaica, Oman,
- -~ udi Arabia, South Africa, Sout_h Kore~ _

Journals
- Journal of Forensic Science
- Fire &amp; Arson Investigator
- Fire Technology
- Fire Science Reviews

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FORENSIC
SCIE~CES

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DYNAMICS

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4

�Board of Regents M eeting
June 2016

CJS/ FSE Presentat ion

. Discover Magazineidentified EKU as the
place for new science in
fire investigations
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requested to participate
in news &amp; documentaries
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News, CNN, CBS / 60
Minutes, local news

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Service
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international committees and editorial boards
. Maintain, inspect, and test all fire extinguishers on
campus
- Corey Hanks (instructor) supervises student workers

. Regularly attend conferences where EKU students
volunteer

5

�Board of Regents Meeting
June 2016

CJS/FSE Presentation

Vision for the Future
. Next 2 years
- Master's of Science in Fire &amp; Explosion
Investigation
- Sustain growth, external accreditations, &amp;
recent increase in publications

. Next 5 years
- Become our own Department

. Initiatives require additional faculty lines

Current Students
. Carl Dolente
- New Jersey native
-

Dual Major: FAEI &amp; FPSET
Senior, December '16
Student worker
Past president of student
organizations
- Accepted a job offer with
Scientific Expert Analysis
(SEA) Limited

. Lisa Webb
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Kentucky native
FPSET major
Senior, December '16
Student worker
3.5+ GPA

- Works in the tutoring
center
- Plans to continue
studies in Graduate

School

6

�Board of Regents Meeting
June 2016

CJS/FSE Presentation

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