UNCF ICB 2015 CFO InstituteKEYNOTE The State of Higher Education: HBCUs.

UNCF ICB 2015 CFO Institute

KEYNOTE The State of

Higher Education: HBCUs

Welcome Governance and Leadership

Value Proposition

Enrollment Management and Affordability

Academic Quality, Student Success and Completion

Federal and State Policy Shift

Infrastructure

Fiscal Viability: Financial Resources and Stability

TheWesleyPeachtreeGroup, CPAs____________wpg-inc.com

Governance and Leadership Trustee qualifications, experiences and selection (diversity)

Presidential qualifications, experiences and selection

Trustee development and training

Presidential development and training

Mission driven, decision-making agility and innovation

Focus on strategic goals and outcomes

Philanthropic culture


Value Proposition Clear definition of the value of an HBCU degree vs other

institutions

Changing the public perception of HBCUs

Marketing and branding the value

Appealing to millennials

Ingrain the HBCU value proposition in all faculty, staff and students


Enrollment Management and Affordability

Enrollment trends at UNCF institutions (IPEDS)

Federal Parent PLUS Loan Program impact and recent changes effective for 2015-16

Tuition and discount trends

Rethinking and devising new strategies for recruiting students

More creative ways to enhance student retention


AVERAGE RESULTSRatio 2010 2011 2012 2013 2014FTE Enrollment 54,396 54,718 53,812 52,932 51,000Tuition Discount 25.7% 25.1% 21.5% 22.3% 22.9%Tuition Dependency 41.0% 42.0% 43.8% 44.2% 43.5%

Academic Quality, Student Success and Completion

Reassessment of academic offerings for relevance to mission and market place

Improving student learning outcomes and assessment: standardized assessment tools

Improving student graduation rates and job placement

More effective use of student support programs, mentoring, opportunity exposure

Talented faculty recruitment and retention (knowledge, skills and dedication)

Mode of delivery: online, face-to-face, or a mix


Federal and State Policy Shift Policymakers shifting from making higher education

accessible to focusing on outcomes.

30 or so states have at least some form of performance based funding.

Trend will continue even though the present federal administration has abandoned its score card funding model

HBCU inflows are heavily dependent on Title III, IV and other funding (about 80%) very sensitive to any policy changes (eg, PLUS debacle)

Must continue to explore ways to become less dependent on government funding.


Infrastructure UNCF members: Average Age of Facilities, Renewal, Burden

and Maintenance

Need to continue to invest in infrastructure to be competitive; tech savvy campus

Since 2006 five years plant indebtedness at UNCF institutions increased by 66% to $1.3 billion (about half came in last 5 years). Net PPE is $2.2 billion.


AVERAGE RESULTSRatio 2010 2011 2012 2013 2014Age of Facilities 17.3 17.6 17.8 19.0 19.0Physical Asset Reinvestment 2.0x 2.0x 2.2x 1.9x 1.6xFacilities Burden 21.0% 21.1% 19.4% 18.0% 16.4%Facilities Maintenance 13.3% 13.9% 12.8% 12.6% 11.9%

Fiscal Viability: Financial Resources and Stability A look and UNCF member overall financial strength (2014)

Need to reengineer the current business model of low rates, low costs and thin margins

More active engagement of trustees in development and fundraising

Engage in strategic business analysis to enhance revenue, accomplish cost savings through efficiencies, strategically generate and deploy resources

Expand affiliations, collaborations and partnerships

Adopt cost management model to understand institutional costs, break even points, instructional cost drivers, etc.

Unbundling services for pricing affordability


AVERAGE RESULTSRatio 2010 2011 2012 2013 2014Composite Financial Index 3.3 3.6 2.9 2.7 3.2

Closing Comments


FCPA, CFE, CGFM, CGMACEO & Managing Associate

Donald K. Murphy, CPA

The Wesley Peachtree Group, CPAs

UNCF ICB 2015 CFO Institute

The State of Higher Education: HBCUs

THANK YOU

Contact:(404) [email protected]

UNCF ICB 2015 CFO InstituteKEYNOTE The State of Higher Education: HBCUs.

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