UOG 2014 AUDIT: CONTINUED FINANCIAL IMPROVEMENT AND ENROLLMENT GROWTH

UOG’s FY 2014 audit showed continued financial strength as the University’s Good to Great (G2G) implementation is taking root.  The audit conducted by Deloitte and Touche, gave the University a clean (unqualified) audit opinion with only one finding with no questioned cost. The five compliance findings from the prior year were satisfactorily addressed. This is the second straight year that UOG has received a clean audit opinion.

Operating revenues were nearly $95M, a slight increase from the prior year. The University also reported a $4.1 million surplus, an improvement of $600K over FY 2013. The major driver behind the results was tight financial management controls which have been implemented as part of the G2G programs.

“This academic year, UOG has enjoyed record enrollment with students numbering almost 4,000 students and credit hour production nearing 47,000,” said President Robert Underwood.  “We are expecting to serve over 4,000 students in Fall 2015 and are looking forward to future enrollment growth.”

Senior Vice President Anita Borja Enriquez added, “This report is well timed as this is the type of financial improvement that the WASC accreditation group has wanted to see.  With a WASC team arriving this fall, the new of continued financial improvement could not have come at a better time.  It is also heartening to see the increasing demand for STEM subjects as more and more students are recognizing UOG as the place they can get a very strong technical education that will support their careers for the next 30 years or more.“

“These results lay the groundwork for regaining a low risk audit status for the University this fiscal year 2015,” said Vice President of Administration and Finance Randy Wiegand. “The credit for this success goes to our business office accountants and other UOG employees who have contributed to improved grant management.”  

Other FY 2014 Audit Highlights Include:

• The Governor and the Legislature appropriated a total of $34.6M to UOG, of which $27M was for operations and $7.6 million for special appropriations. Have continued to show support to UOG’s G2G implementation by approving legislation allowing a one-time waiver for the University to forgo a $2 million debt service payment in FY 2014.
  
  
• UOG received nearly $36M in revenue from grants and contracts.  This includes awards for student financial aid, developmental disabilities, cancer research, etc.  This is a decrease from last year due to the completion of large federal grant awards including the ARRA grants.
  
  
• Operating expenses decreased by $360K as a direct result of the University’s implementation of its Financial Management Plan. This is especially challenging in light of the increasing enrollment at the University which is placing upward pressure on costs.