Virtual Homecoming October 19-24 2020

Virtual Homecoming October 19-24 2020

Budget and Finance

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FY 2020 Budget Planning Process: click here

EXTRACTS FROM MANAGEMENT’S DISCUSSION & ANALYSIS

Discussion of Statement of Net Position

Current assets decreased 2% during the year. The ending balance of $17.6 million consists primarily of cash/cash equivalents ($9.6 million), receivables ($7.6 million) and other ($400k). All cash and cash equivalents are essential and completely designated for ongoing operations including capital projects. The University attempts to maximize interest earnings by investing funds in the State Investment Council and with the State of New Mexico Local Government Investment Pool. The University has abided by its short term and endowment investment policies, thereby, ensuring liquidity and safety. The University has implemented procedures to collect receivables in a timely manner and is well able to meet all its current financial obligations.

Discussion of Statement of Revenues, Expenses and Changes in Net Position

The University’s net position decreased by $8.9 million during the year. Operating expenses ($77.6 million) are subtracted from operating revenues ($36 million), resulting in an “operating loss” ($41.6 million). State general fund appropriations ($30.1 million), are not included as operating revenue; however, it is reflected as non-operating revenue, because they are provided to the University without the state receiving commensurate goods and services in exchange. State general fund appropriations are essential for the University to carry out its instructional and public service mission. “(Loss) income before other revenue, expenses, gains and losses” was ($10.1 million). $2.3 million in capital appropriations revenues (federal and state funds designated for construction projects) resulted in a decrease in net position of ($8.9 million).

The state appropriation for general funds for year ended June 30, 2019 was $30.1 million as compared to state appropriation for year ended June 30, 2018 at $29.1 million.

Tuition and fees, net of discounts and allowances, decreased by 10%. Tuition discounts and allowances are tracked individually by student and the annual expense increased by 2%.

Discussion of Statement of Cash Flows

This statement shows the sources and uses of cash and cash equivalents in four standard categories. The University had a $303 thousand net increase during the year, resulting in an ending cash balance of $9,613 million.