FY2021 Financial Plan Office of Business and Finance Financial Planning and Analysis FY 2021 FINANCIAL PLAN FY 2021 Financial Plan Chapter 1 | Executive Summary........................................................................................................................................................3 University Response to COVID-19 ..............................................................................................................................................5 Strategic Context.............................................................................................................................................................................6 FY 2021 Operating Plan Summary..............................................................................................................................................9 Chapter 2 | FY 2021 Operating Plan Scope ................................................................................................................................12 Operating Plan Units.....................................................................................................................................................................12 Operating Plan Funds ...................................................................................................................................................................17 General Funds Allocations ..........................................................................................................................................................21 Chapter 3 | FY 2021 Financial Plan...............................................................................................................................................24 Consolidated ..................................................................................................................................................................................24 University [excluding Health System and OSUP] .................................................................................................................25 University by Fund Group [FY21 Plan] .....................................................................................................................................26 Chapter 4 | University Operating Plan | Sources.......................................................................................................................28 Tuition and Fees............................................................................................................................................................................28 Government Appropriations.......................................................................................................................................................34 Grants and Contracts ...................................................................................................................................................................34 Sales and Services........................................................................................................................................................................36 Advancement Sources ................................................................................................................................................................36 Interest Income ..............................................................................................................................................................................37 Chapter 5 | University Operating Plan | Uses.............................................................................................................................38 Salaries and Benefits ...................................................................................................................................................................38 Student Financial Aid ...................................................................................................................................................................39 Fee Authorizations........................................................................................................................................................................40 Supplies and Services .................................................................................................................................................................40 Interest Expense.............................................................................................................................................................................41 Chapter 6 | Health System Operating Plan ................................................................................................................................42 Chapter 7 | OSU Physicians Operating Plan...............................................................................................................................44 Chapter 8 | Capital Investment Plan FY 2021-25......................................................................................................................45 Chapter 9 | Economic Impact of Ohio State...............................................................................................................................48 Appendix A | FY 2021 Financial Plan – GASB Version............................................................................................................49 FY 2021 Presentation Notes ......................................................................................................................................................49 Consolidated – GASB Version..................................................................................................................................................50 Appendix B | Student Fees ..............................................................................................................................................................51 1 FY 2021 FINANCIAL PLAN Columbus Undergraduate Fees.................................................................................................................................................51 Regional Campus and ATI Undergraduate Fees .................................................................................................................52 Undergraduate Program and Technology Fees...................................................................................................................53 Graduate and Professional Fees ..............................................................................................................................................54 Online Programs ...........................................................................................................................................................................55 Graduate Program and Technology Fees..............................................................................................................................56 Housing Rates................................................................................................................................................................................57 Dining Rates ...................................................................................................................................................................................58 Appendix C | Typical Annual Undergraduate Fees..................................................................................................................59 Appendix D | Tuition and SSI History (Columbus Campus)....................................................................................................60 2 FY 2021 FINANCIAL PLAN Chapter 1 | Executive Summary We are pleased to submit the FY 2021 Financial Plan. This plan builds on the university’s strengths and provides operating margin to be reinvested into capital projects at the university. Consistent with the higher education and the health care industries, this was a challenging planning year with the pandemic affecting nearly every revenue source. We have taken corresponding expenditure and cost containment actions during this planning cycle. Impacts on the plan relating to COVID-19 are addressed throughout the narrative. We are presenting the Operating Plan alongside the Capital Investment Plan to provide more clarity about funding sources – which funding sources are fungible and can be spent for unrestricted purposes, and which funding sources must be spent on legally mandated or designated programs and projects. The narratives throughout this financial plan utilize this managerial-based presentation. The full U.S. GAAP version of the plan is presented in Appendix A for comparison. This document includes an Executive Summary, an introduction on planning at Ohio State, the full FY 2021 Operating Plan, a snapshot of the FY 2021 Capital Investment Plan, and detailed material provided in the Appendix. Highlights of the Financial Plan . The Consolidated FY 2021 Operating Plan projects a surplus after depreciation of $35.6 million on $7.5 billion of sources and $7 billion of uses and $458.6 million of depreciation. We anticipate sources will decrease - 0.2% over FY 2020 results, driven primarily by decreases in university sales and services, tuition and fees, and interest income, offset by growth in The Ohio State University Health System and Ohio State University Physicians, Inc.