On behalf of the Planning Committee, we offer for your review a draft of the financial model that corresponds to the Implementation Plan we presented in the fall. Please click here to download this document.* As you peruse the contents it is important to keep the following in mind:
- This is a work in progress and we welcome your feedback, corrections, and suggestions.
- The figures represented here are our best guess given what we know today. No matter how well thought out, a strategic plan is never cast in stone.
- The further we go toward 2025, the more uncertain the numbers will become. Thus, while we have projected expenditures out over a 10 year time horizon, the budgetary alignment only extends three years into the future.
When you click the link, it will open a “read only” version of a large spreadsheet. (Just hit “yes” when prompted.) The first tab “One Page Summary” offers an overview of how the strategic plan will impact the operating budget, the capital budget and gift targets over the next 10 years.
The second tab “All Tactics” offers the greatest detail on the 98 strategic plan tactics. The “Notes” column at the very end offers more detail. If you have questions about any individual tactic, we encourage you to contact your representative on the Planning Committee, the Tactic Coordinator (see Column F), or the two of us in our capacity as Planning Committee co-chairs. We will be happy to follow up.
The third, fourth, and fifth tabs offer a year-by-year summary of tactics that impact the operating budget, the capital budget, and gift targets, respectively. The sixth tab summarizes those tactics that do not have an associated financial impact.
The seventh tab “Base Budget Projections” offers a preliminary budget for FY15, FY16, and FY17. You will note both a worst case “Black Swan” scenario for FY15, which assumes that we are only able to recruit 400 students, and the target scenario in which we meet our target of 430 students. FY16 and FY17 assume a recruitment target of 460 students. As you will see, a marginal revenue of $2.4 million and $4.5 million is projected in FY16 and FY17, respectively. (Note that these figures take COLA and other predictable annual increases in the operating budget into account.)
The final tab “Gap Analysis” demonstrates the deficit/surplus we will have if we take on all the operating and non-donor funded capital costs associated with the strategic plan for those years. You will see that if budgetary assumptions hold, we would be able to cover all but $310K of the increase in the operating and capital budgets in FY16. We could close this gap either with an additional 14 students or by putting off some strategic plan initiatives for a later year. If budgetary assumptions hold, we would experience a surplus in FY17.
On Behalf of the Committee,
Dale Daigle & Emily Chamlee-Wright, Co-Chairs
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