Central Washington University Board of Trustees February 22, 2019 ACTION – Annual Financial Report
On February 8, the Washington State Auditor’s Office held an exit conference with representatives of the Board of Trustees and Business & Finance Affairs for the purpose of reviewing the results of the independent audits of fiscal year 2018, and to provide an open forum for discussion. The SAO performed two audits: • The university’s Comprehensive Annual Financial Report, which included a “clean” opinion with no findings. • An audit of the System (a combination of the housing/dining, bookstore, parking and student fee funds), which also included an unmodified or “clean” opinion with no findings. Over the past few years, the university has implemented several new, highly complex, accounting standards related to pensions and OPEB (other post-employment benefits) and is pleased with another clean audit with no findings. Moreover, the results of operations in fiscal year 2018 indicate significant progress toward improving operating margins, summarized below: - Of the $1.1M increase in operating expenses, Instruction & Student Services expenses increased by nearly $5.9M (5.3%), while all other expenses, including depreciation, decreased by $4.8M (3.5%) 2018 marks the first year under the new RCM/ABB budget model, which, among several things is intended to drive resources towards our core mission. While there is still much work to do integrating this model, the prime financial indicators are very encouraging. • 2018 operating revenues increased $8.3M, or 5.4% over 2017 • 2018 operating expenses increased only $1.1M or .45% over 2017
We recommend the following motion:
The Board of Trustees of Central Washington University hereby accepts the Audited Financial Statements for Fiscal Year 2018 as presented. Submitted: Approved for submission:
_________________________________ __________________________________ Joel Klucking, Vice President James L. Gaudino Business and Financial Affairs President
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