Diocese School Advisory Board
Diocese School Advisory Board
Building a Long Range
Financial Plan
Financial Plan
Contents
Contents
Overview
Purpose of Plan
Plan Goals
Plan Goals
Plan Summary
(example)
Plan Assumptions
(example)
Comparison of Plan to Goals
(example)
Conclusion
Overview
Overview
Goal is to provide schools that do not have a Long Range
Financial Plan a starting point to build one.
▪
Underlying Assumptions:
◊
Schools have a current year operating budget.
◊
Schools have a current year operating budget.
◊
Schools have a Long Range Strategic Plan.
◊
Effort to develop the 5-year financial plan will take
place in the March/April timeframe.
◊
Schools have the skills available, either a volunteer or a staff
member, to develop a complex multi-year plan using Excel.
Purpose of Plan
Purpose of Plan
Address the school’s Strategic goals and strategies.
Provide information that will help maintain the financial
viability and excellence of the school.
Provide a basis for the early identification of financial
Provide a basis for the early identification of financial
problems, risks and exposures.
Satisfy one of the benchmark requirements to receive
Diocesan funds for tuition assistance or for starting/growing
an endowment.
Plan Goals
Plan Goals
Balance the school’s operating budget each year.
Achieve a teacher salary scale equal to 80% - 90% of
local ISD prior year salary scale.
Provide non-staffing funding to support, maintain and
Provide non-staffing funding to support, maintain and
improve the quality and excellence of the educational
program.
Maintain affordable tuition rates to achieve the inclusion
of students from diverse cultures and socioeconomic
backgrounds.
Ensure tuition assistance is funded annually at 6% - 9%
Plan Goals
Plan Goals
(continued)
(continued)
Increase medical insurance payment by the school to a minimum
of 75% by 2013/14.
Provide 403b Retirement Plan funding for all full time
employees
(30+ hours/week)
.
2012/13 school tear–contribute a minimum of 1.0% of FTE salary
2013/14 school year–contribute a minimum of 1.5% of FTE salary
2013/14 school year–contribute a minimum of 1.5% of FTE salary
2014/15 school year–contribute a minimum of 2.0% of FTE salary
Grow and maintain a cash reserve equal to 2 – 3 months
operating cost.
Grow net development income to achieve a break even budget
(inclusive of debt service). Excess development income to be
used to build the reserve or endowment.
Year 1
Year 2
Year 3
Year 4
Year 5
Operating Plan Preliminary Long Range Long Range Long Range
Income Outlook Operating Plan Projection Projection Projection
Tuition/Fees $2,579,986 $2,708,811 $2,803,620 $2,901,746 $3,003,307 Tuition Assistance ($200,000) ($210,000) ($217,350) ($224,957) ($232,831) Parish/Diocese Support $263,250 $263,250 $271,148 $279,282 $287,660 Development $430,000 $463,500 $538,636 $613,536 $624,553 Other Income $108,539 $117,200 $117,200 $117,200 $117,200 Total Income $3,181,775 $3,342,761 $3,513,254 $3,686,807 $3,799,889 Expenses Salaries / Benefits $2,006,915 $2,088,929 $2,217,890 $2,348,560 $2,457,525 Operations $560,559 $551,547 $604,201 $662,044 $725,595
5-Year Plan Summary
Example
Operations $560,559 $551,547 $604,201 $662,044 $725,595 Develop./Admissions $64,370 $57,734 $59,466 $61,250 $63,088 Event Cost $72,213 $71,500 $73,645 $75,854 $78,130 Other Expenses $42,748 $59,200 $59,650 $60,114 $60,591 Total Expenses $2,746,805 $2,828,910 $3,014,852 $3,207,822 $3,384,929 Net Income $434,969 $513,851 $498,402 $478,985 $414,960 Opening Cash $590,093 $418,450 $451,654 $485,065 $514,715 Net Income $434,969 $513,851 $498,402 $478,985 $414,960 Debt Service ($496,303) ($480,647) ($464,991) ($449,335) ($433,680) Capital Expenditures ($110,309) $0 $0 $0 $0 Closing Cash $418,450 $451,654 $485,065 $514,715 $495,995Income Tuition/Fees Tuition Assistance Parish/Diocese Support Development Other Income Total Income Expenses Salaries / Benefits Operations
5-Year Plan Summary
Example
Operations Develop./Admissions Event Cost Other Expenses Total Expenses Net Income Opening Cash Net Income Debt Service Capital Expenditures Closing CashYear 1
Year 2
Year 3
Year 4
Year 5
Operating Plan Preliminary Long Range Long Range Long Range
Income Outlook Operating Plan Projection Projection Projection
Tuition/Fees Tuition Assistance Parish/Diocese Support Development Other Income Total Income Expenses Salaries / Benefits Operations
5-Year Plan Summary
Example
Operations Develop./Admissions Event Cost Other Expenses Total Expenses Net Income Opening Cash Net Income Debt Service Capital Expenditures Closing CashYear 1
Year 2
Year 3
Year 4
Year 5
Operating Plan Preliminary Long Range Long Range Long Range
Income Outlook Operating Plan Projection Projection Projection
Tuition/Fees $2,579,986 $2,708,811 $2,803,620 $2,901,746 $3,003,307 Tuition Assistance ($200,000) ($210,000) ($217,350) ($224,957) ($232,831) Parish/Diocese Support $263,250 $263,250 $271,148 $279,282 $287,660 Development $430,000 $463,500 $538,636 $613,536 $624,553 Other Income $108,539 $117,200 $117,200 $117,200 $117,200 Total Income $3,181,775 $3,342,761 $3,513,254 $3,686,807 $3,799,889 Expenses Salaries / Benefits $2,006,915 $2,088,929 $2,217,890 $2,348,560 $2,457,525 Operations $560,559 $551,547 $604,201 $662,044 $725,595
5-Year Plan Summary
Example
Operations $560,559 $551,547 $604,201 $662,044 $725,595 Develop./Admissions $64,370 $57,734 $59,466 $61,250 $63,088 Event Cost $72,213 $71,500 $73,645 $75,854 $78,130 Other Expenses $42,748 $59,200 $59,650 $60,114 $60,591 Total Expenses $2,746,805 $2,828,910 $3,014,852 $3,207,822 $3,384,929 Net Income $434,969 $513,851 $498,402 $478,985 $414,960 Opening Cash $590,093 $418,450 $451,654 $485,065 $514,715 Net Income $434,969 $513,851 $498,402 $478,985 $414,960 Debt Service ($496,303) ($480,647) ($464,991) ($449,335) ($433,680) Capital Expenditures ($110,309) $0 $0 $0 $0 Closing Cash $418,450 $451,654 $485,065 $514,715 $495,995Plan Assumptions
Plan Assumptions
Example
Year-by-year assumptions:
Inflation rate
Enrollment levels
Tuition/fees
Tuition assistance
Tuition assistance
Teacher salaries
Non-staffing operational cost
Employer medical insurance contribution
403b retirement plan contributions
Parish/Diocese support
Development income
Other income/cost
Comparison of Plan
Comparison of Plan vs
vs Goals
Goals
Example
Example
Teacher salaries to equal 80% to 90% of prior year ISD salaries.
The proposed plan includes a 3% per year increase resulting in an
Comparison of Plan
Comparison of Plan vs
vs Goals
Goals
Example
Example
Teacher salaries to equal 80% to 90% of prior year ISD salaries.
The proposed plan includes a 3% per year increase resulting in an
87.2% ratio by the 5
thyear of the plan.
Ensure tuition assistance is funded annually at 7% to 10% of
tuition/fees gross revenue.
The proposed plan includes a tuition assistance amount each year
The proposed plan includes a tuition assistance amount each year
equal to 7.4% of tuition/fees gross revenue.
Ensure the cash reserve is funded and maintained at a minimum
level of $500,000.
The proposed plan shows the minimum reserve level is only achieved
in year xx of the plan.
The school’s operating budget is to be balanced each year.
The proposed plan shows a balanced budget for every year except
Comparison of Plan
Comparison of Plan vs
vs Goals
Goals
Example
Example
Teacher salaries to equal 80% to 90% of prior year ISD salaries.
The proposed plan includes a 3% per year increase resulting in an
87.2% ratio by the 5
thyear of the plan.
Ensure tuition assistance is funded annually at 7% to 10% of
tuition/fees gross revenue.
The proposed plan includes a tuition assistance amount each year
The proposed plan includes a tuition assistance amount each year
equal to 7.4% of tuition/fees gross revenue.
Ensure the cash reserve is funded and maintained at a minimum
level of $500.000.
The proposed plan shows the minimum reserve level is achieved only in
year 4 of the plan.
The school’s operating budget is to be balanced each year.
