Financial Trends and Highlights

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Education for Employment

Mission

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Strategic Goals FY11

• Diversity• Enrollment• Engagement• Teaching and Learning• Financial Stewardship

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Current Financial Health

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Composite Financial Index Trends 2011 2010 2009

Primary reserve 1.03 0.86 0.77 Return on net assets 0.76 1.31 1.97 Viability 3.50 3.10 2.47 Operating margin 0.20 0.29 0.08 Composite 5.50 5.56 5.30 Note: The values above are all weighted values and have been modified for GO Bonds/Capital Appropriation Source: www.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengths

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2009 2010 2011$0

$2

$4

$6

$8

$10

$12

$14

Margin and Unrestricted Net Asset Trends (millions)

Operating Margin Unrestricted net assets

Source: www.finance.mnscu.edu/accounting/financialstatements

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Technical College Comparison of Financial Composite Index Ratios for 2011

CFI Component RatiosPrimary Reserve

Return on Assets Viability

Operating Margin Composite

DCTC 1.03 0.76 3.50 0.20 5.50

Alexandria Tech 0.44 0.40 0.62 0.14 1.60Anoka Tech 0.56 0.76 0.77 0.37 2.45Hennepin Tech 0.58 2.00 1.71 (0.02) 4.26South Central College 0.61 2.00 3.50 0.59 6.69Southeast Tech 0.48 0.79 1.03 0.31 2.61St. Cloud TCC 1.34 1.23 1.85 0.41 4.82

Group Average 0.72 1.13 1.85 0.28 3.99DCTC – Above or Below Avg. 0.31 (0.37) 1.65 (0.08) 1.51

Source: www.finance.mnscu.edu/accounting/financialstatements/2011-2009 Composite Financial Index Strengths

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Per Full Year Equivalent Student Data

2011 2010 2009 Total Operating Expense 12,188 12,729 14,254 Direct Student Expense 8,216 8,156 8,934 % direct student expense 67.4% 64.1% 62.7% Student-based Revenue 6,860 7,301 7,379 % of total revenue* 52% 51% 45% Appropriation Revenue 4,067 4,425 5,744 % of total revenue* 31% 31% 35% Operating Margin per FYE** 331 492 158 % Change in student FYE 3% 13% 5% * Excluding all capital appropriation for capitalized projects.

** Add back HEAPR revenue equal to HEAPR projects expensed Source: System-Wide Ratios.xls (provided by Minnesota State Colleges and Universities)

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2007 2008 2009 2010 20116,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

Tuition & State Appropriation Trends

Tuition State Appropriation

Source: Audited Financial Statements

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State Revenue Support

Source: Audited Financial Statements and 2012 appropriations

2006 2007 2008 2009 2010 2011 2012 20130.00%

0.50%

1.00%

1.50%

2.00%

2.50%

DCTC Percentage Share of Allocation

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Capital Assets--Investment, Age and Maintenance

Ratios: 2011 2010 2009

Additions to beginning depreciable cost (investment) 0.07 0.03 0.11 Ending accumulated depreciation to depreciation expense (age)

27.56 23.93 25.30 Facilities maintenance ratio 0.10 0.11 0.13 Operations and Maintenance expense per square foot $5.73 $6.46 $7.07

Source: FY11 Bld and CIP Leadsheet

Technical College Comparison of Capital Assets/Facilities Ratios

Capital Assets/Facilities Ratios Investment Age

Facilities Maint Ratio

Op & Main Exp/Sq Ft

DCTC 0.07 27.6 0.10 $5.73

Alexandria Tech 0.03 7.8 0.09 $5.01

Anoka Tech 0.04 16.1 0.12 $7.50

Hennepin Tech 0.35 18.3 0.12 $7.25

South Central College 0.04 36.9 0.06 $6.13

Southeast Tech 0.02 18.6 0.08 $6.84

St. Cloud TCC 0.01 10.8 0.07 $5.78

Group Average 0.08 18.3 0.09 $5.33DCTC – Above or Below Avg. (0.01) 1.4 0.01 $(0.59)

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Factors that Affected the College in FY11

• Increasing program efficiency• Utilized external/federal dollars and internal profit centers• Obtained external in-kind donations to support technical

education• Declining state appropriation• Consistent enrollment growth• Rising costs of equipment and materials necessary to meet

industry standards in technical education• Substantial increase in use of financial aid, third-party billing,

and collections• Meeting the criteria of external accrediting bodies and

organizations

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Evolving Financial Factors

• State and federal revenue support• Diversification of alternative resources• Enrollment uncertain• Establishing appropriate tuition rates• Changes in salary and benefit expenses• Impact of negotiated employment agreements• Cost of maintaining facilities and equipment necessary

for technical education• Shifting needs and expectations of students’

educational experiences

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Future Financial Health

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2008 2009 2010 2011 2012$100.00

$110.00

$120.00

$130.00

$140.00

$150.00

$160.00

$170.00

$180.00

Base Tuition per Credit Rate

Source: ISRS screen AR0101UG “Tuition Rates Entry”

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Budget Principles for the Future

• Incorporate MnSCU strategic framework and newly adopted DCTC strategic directions

• Serve the economic development needs of Dakota County and the region

• Demonstrate stewardship through financial accountability to stakeholders

• Sustain long-term financial viability through planning and collaboration

• Provide student environment that leads to desired student outcomes

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Plans to Strengthen Future Financial Health• Continue to maximize enrollment for programs• Maximize efficient use of all facilities• Diversification of revenue streams• Continually evaluate staff and program efficiency• Implement shared administrative service functions

and/or campus cooperative efforts with other MnSCU colleges

• Implement new retention initiatives• Leverage partnerships• Pilot tuition incentive model

A member of the Minnesota State Colleges & Universities system and an affirmative action, equal opportunity employer and educator. This document is available in alternative formats to individuals with disabilities by calling 877-937-3282 or TTY: 651-423-8621.