Enterprise Funds The Enterprise Funds consist of Housing and Dining, parking, and the Wildcat Shop (bookstore). Although many universities contract-out these functions, they are self-operated at CWU, and must generate enough revenue to cover their operating expenses and debt service, plus set aside funds for asset re-investment. When combined with the student activities funds, this is the “CWU System,” an entity that holds the university’s revenue bonds. Generally speaking, the Enterprise Funds derive their revenues from student fees, so enrollment is critical to the financial viability of these operations. In the case of Housing and Dining, first-year Ellensburg students are the main driver of revenues as CWU requires first-year students to live on campus. As enrollment in this category has been very strong since FY 2016, the enterprise funds have performed very well, but are operating near capacity. When Dugmore Hall and the associated dining facility open in fall 2019, much needed capacity will come online. It will also bring additional operating costs and about $2.3 million in additional bond payments. Expenses are mainly driven by staff FTE, wage rates, and inflationary pressures on operating expenses, including cost of goods sold. CWU is fortunate to have seasoned operators in these areas responsible for the day-to-day operations and financial management. Below are operating results since FY 2015. The increase in wage-and-benefits is subject to the vacancy rate phenomenon as in other funds, however we do expect to see considerable increase in operating expenses due to the new residence hall and dining facility, as well as other investments intended to improve the residential student experience. Expenses Wages & Benefits 11,680 12,562 13,728 14,518 16,545 20,426 Goods & Services 10,028 11,115 12,097 11,891 12,703 13,630 Cost of Goods Sold 10,915 11,643 12,027 11,989 12,134 13,269 Debt Service 5,804 5,804 5,804 6,010 5,710 8,772 Total Expenses 38,427 41,124 43,655 44,408 $47,092 56,098 Net Margin $1,237 $3,039 $3,510 $6,158 $5,522 $2,959 Excludes depreciation Enterprise Funds Operations ('000s) FY15 FY16 FY17 FY18 FY19 (F) FY20 (B) $39,663 $44,163 $47,165 $50,566 $52,614 $59,056 Revenues
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