Government, UNC

UNC Board of Governors Meeting Materials April 2014

The UNC Board of Governors Meeting Materials for the April 10th-11th 2014 meeting are available as of April 7th.  The BOG received a package of approximately 600 pages the afternoon of Friday, April 4th.  It includes hot links to additional documents.  In the interest of transparency, I’m posting information about the public items.

April 2014 BOG Meeting Materials – image of webpage with agenda items

Meeting Materials can be viewed here

Some Initial Items of Note from the Audit and Budget & Finance Committees Include:

Audit – Item 3 – Audit Reports Released Since Last Meeting – including ECSU Long Distance Charges Audit and others.

Budget and Finance – Item 2 – Athletics Financial Transparency, Item 4 – Bonds for UNCG Recreation Center,  Item 5 – Tuition Bill Transparency, and Item 14 – FY 2013-14 Budget Management.

UNC Board of Governors April 2014 Meeting Materials Page

UNC Board of Governors April 2014 Meeting Materials Page

Please add your comments and concerns.  I am still reviewing all the materials and will post more items later.

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Government, UNC

$156 Million Project vs. Teachers of Pitt County

The UNC Board of Governors approved a $156 million student center at ECU.  I spoke and voted against the measure in both Thursday’s UNC BOG Budget & Finance Committee and the Friday’s main UNC BOG meeting.  In both instances, I was the lone vote to deny.  It was Item 10 – Authorization of Non-Appropriated Capital Improvement Projects.  The ECU vote was split out in the B&F meeting because of the number of ECU officials attending the committee meeting.    I voted against the ECU item, but voted to approve the other items in a separate vote.

My concerns included:

  • $425 estimated student fee increase.  Approximately $10-11 million per year.
  • Raising fees, but taking credit for holding tuition flat is disingenuous.  
  • Construction costs of $156 million for 280,0000sf of buildings and parking deck.  A thorough review of construction costs for all projects across all campuses should be done.  In addition, those costs should be compared to private sector costs.
  • It is important to note that the instructional budget for Pitt County schools is $25 million per year.  This ECU student fee increase is $10-11 million per year by comparison.

On the same day as the UNC BOG vote for the ECU Student Center, Pitt County Schools announced that it would have to cut teachers’ hours because of ACA (Obamacare).  The impact of ACA (Obamacare) to the UNC System is $47 million per year.  We are going to struggle to deal with all these unanticipated costs.

Financial resources are not unlimited.  We must consider the financial impact of our decisions on students, teachers, taxpayers, and the area.

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Government, UNC

UNC System Financial Statements – Detailed Consolidated and by Campus

I started serving on the UNC Board of Governors in August 2013 and was placed on the Budget and Finance Committee as well as the Audit Committee.  The Board oversees the UNC System and its 17 campuses and related entities.

At our first meeting we were presented with a partial budget ($2.6 billion which is the State Appropriations funding/spending, not the full $8.8 billion).  I personally find it difficult to consider a budget without looking at the whole picture, financials, prior spending, impact, etc.  That’s especially trying when hundreds of pages of materials are supplied just a few days before the meeting.

In my business, we compare property by property financials as well as restaurant unit metrics.  I’m a product of the UNC System – Carolina for undergrad Business Admin and UNCG for MBA, so I was surprised to learn that there were no campus by campus comparison financial statements, nor a detailed consolidated financial statement.

I was able to obtain PDFs of the following financial statements:  ASU, ECSU, ECU, FSU, NC A&T, NCCU, NCSU, UNC-CH, UNC-General Admin, UNCA, UNCC, UNCG, UNCP, UNCSA, UNCW, WCU, WSSU and various other entities.  These are public materials, though not easily found.

Here’s a dropbox link those campus financials:  https://www.dropbox.com/sh/4khqoeet1ltpp9i/NoJ2JcPIF8

Two of my company staff worked to prepare the following Detailed Consolidated and by Campus Financial Statements (with numbers per student and per staff).  They had to start with the pdfs rather than spreadsheets (and hand key in the numbers), because those did not exist in the UNC System.  I’ve since found out that the State Auditor’s office has worksheets with the raw numbers – so I plan to request prior years’ numbers from Auditor Wood.

Here’s a dropbox link to our completed Excel spreadsheet and cover page.  I provided this to the BOG in November 2013.  https://www.dropbox.com/sh/dkf253bpqhmlx1z/HiyqLqQHW5

UPDATE 2/18/14 – SPREADSHEET UPDATED TO REFLECT 2012 FULL TIME EQUIVALENT STUDENT NUMBERS – NOTE SECOND SPREADSHEET

Cover Page of the Detailed Consolidated and by Campus Financials

Cover Page of the Detailed Consolidated and by Campus Financials

The Board of Governors meets every month.  The next meeting of the Budget and Finance Committee is Thursday, February 20, 2014 in the Board Room of the Spangler Center in Chapel Hill at 12:45pm.  The topics will include Tuition and Fees for 2014-15, Budget Priorities, Authorization of Non-Appropriated Capital Improvements, and several others.  The meeting is open to the public.  The whole Board meets that Thursday morning at 9:30am with several committee meetings in the same building that day – all of those meetings are open meetings.  On Friday the 21st, the board meets for its formal session at 9am on SAS Campus, Building C, in Cary, NC (also open to the public).  I would encourage any interested parties to attend.  There is not an opportunity for the public to speak, but there are several breaks where attendees can talk with the BOG and University staff.

You can access full meeting materials through the following link (click on Meeting Materials):  https://www.northcarolina.edu/bog/index.php

ADDED 2/18/14 – UNC Foundations Activity Statements and Financials

UPDATE 2/18/14 – SPREADSHEET UPDATED TO REFLECT 2012 FULL TIME EQUIVALENT STUDENT NUMBERS – NOTE SECOND SPREADSHEET – https://www.dropbox.com/sh/dkf253bpqhmlx1z/HiyqLqQHW5

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