Diane Newton, vice president of finance and administration, provided an overview of the university’s finances during a finance forum Feb. 11 at the Ida Waldran Auditorium.
The presentation looked at the fiscal 2011budget and how the university spent $7 million in bond money and $4.7 million in stimulus funds.
About $1.3 million in bond funds was allocated for the purchase of computers. Academics was allotted $900,000 of the bond money. More than $2.6 million of bond money was used for repairs, maintenance, and equipment purchase, Newton said.
The bond money was also used for security enhancements and to address safety issues. Newton pointed out that the new sidewalks are not just for beautification. Some were raised because of flooding issues.
“We also addressed about 20 accessible ramps,” she said. “So, there is a lot more than just beautification in those.”
A majority of the $4.7 million is stimulus funds – about $3 million—was used for roof repairs, waterproofing of buildings and lighting projects. About $1 million was set aside for housing needs. Stimulus money was also used to provide bonuses to non-classified employees in December.
The university has experienced revenue shortfalls, she said. UCA received $2.3 million less in state appropriations due to budget cuts. In addition, there was a $1.7 million loss in tuition revenue, she said. However, there was a $3.2 million in scholarship savings. The university had to cut back on scholarships to meet the state mandate, Newton explained.
“Even with those impacts, we feel like we are going to end the year with about $5 million in cash balances,” she said. “Not all of that is spendable money. Of that amount, about $1.5 million is unrestricted.”
The university has not used the line of credit in more than a year.
There are still a number of unknowns for the fiscal 2011 budget, Newton said.
UCA President Allen Meadors has made it a priority to include a salary increase for employees in the 2011 fiscal budget, she added.
“We are not sure of the specifics of it other than we are going to do all we can to make that happen,” she said.
Another priority, Newton said, is making sure rebuilding the fund balances is a part of the budget.
Newton hopes the presentation will help the campus community understand what the university is dealing with and the challenges in next year’s budget, she said.