Many colleges and universities are experiencing declining enrollment, and/or increasing discount rates creating a decline in student net tuition revenue. Whether or not this is your perspective, each of us desire to improve budgeting and forecasting processes recognizing the approach may be based on overly optimistic projections, established without the use of a multi-year historical enrollment and retention data approach, focused only on the income statement, seen as a “black box” approach by senior leadership, unable to use “what-if” scenario planning, and creating flawed midyear revenue shortfall strategies.
Imagine the ability to table-top multi-year scenarios of recruitment, freshman discounts, capital spending, debt, fundraising, and the impact of strategic initiatives, with full financial statements, including cash flows and ratios; all in real-time, with the leadership team sitting around a table. Rather than someone crunching numbers in a remote cubicle, the entire leadership team can view in real time the impact of various levels of activity, pricing, and discounts on the overall institution. Revenue projection becomes transparent to all participants, with individually owned worksheets for enrollment, financial aid, strategic initiatives, capital spending, donations, auxiliary enterprises, investment management, etc. Having confidence in revenues, the process of adjusting levels of spending is accomplished more successfully. With budgeting and forecasting intertwined, a roadmap is created for more than a single year and strategic initiatives are effectively connected with financial planning. The leadership team is educated and engaged. The board, banks, campus constituency, and accreditors are impressed and grateful for the results.
Learning Objectives - Attendees will be able to:
Identify means and methods for: (a) generating reliable revenue projections in the early fall for both current and coming year, (b) developing a budget and five year forecast based on reliable data and input, (c) integrating strategic initiatives into the planning, (d) engendering ownership of component projections by the leadership team, (e) enabling “what-if” scenario planning, (f) incorporating temporary and permanently restricted activity into the forecasting and creating full financial statements (Statement of Activities, Balance Sheet, Cash Flow Statement), and (g) easily calculating DOE and CFI ratios.
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Delivery Method: Group-Internet-Based
Program Level: Basic
CPE Credits: 1.5
Field of Study: Finance
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