The University of Illinois at Urbana-Champaign (UIUC) is a public research university that provides financial statements to stakeholders, including students, faculty, staff, and investors. The university's earning statement, also known as the Statement of Revenues, Expenses, and Changes in Net Position, provides a comprehensive overview of its financial performance over a specific period.
Overview of UIUC’s Earning Statement
UIUC’s earning statement is prepared in accordance with the Governmental Accounting Standards Board (GASB) standards, which provide a framework for financial reporting by public colleges and universities. The statement presents the university’s revenues, expenses, and changes in net position, which provide insights into its financial health and sustainability. The statement is typically presented in a comprehensive format, which includes all revenues and expenses, as well as gains and losses.
Revenue Streams
UIUC’s earning statement reveals that the university generates revenue from various sources, including:
- Tuition and fees: This is the primary source of revenue for the university, accounting for approximately 40% of total revenues.
- Grants and contracts: The university receives funding from government agencies, foundations, and corporations to support research and other activities, accounting for around 25% of total revenues.
- Investments: UIUC’s endowment and other investments generate income, which accounts for approximately 10% of total revenues.
- Auxiliary enterprises: The university operates various auxiliary enterprises, such as dining, housing, and recreation, which generate revenue and account for around 15% of total revenues.
| Revenue Source | FY 2020 | FY 2021 | FY 2022 |
|---|---|---|---|
| Tuition and fees | $734 million | $763 million | $794 million |
| Grants and contracts | $442 million | $463 million | $484 million |
| Investments | $143 million | $153 million | $163 million |
| Auxiliary enterprises | $221 million | $233 million | $245 million |
Expense Analysis
UIUC’s earning statement also provides insights into the university’s expenses, which can be categorized into several areas, including:
- Instruction: This includes costs associated with faculty and staff salaries, benefits, and other instructional expenses, accounting for approximately 60% of total expenses.
- Research: The university invests in research activities, which accounts for around 15% of total expenses.
- Student services: The university provides various student services, including counseling, health services, and student activities, which account for approximately 10% of total expenses.
- Administrative services: The university’s administrative services, including human resources, finance, and facilities management, account for around 10% of total expenses.
| Expense Category | FY 2020 | FY 2021 | FY 2022 |
|---|---|---|---|
| Instruction | $1.04 billion | $1.09 billion | $1.14 billion |
| Research | $243 million | $254 million | $265 million |
| Student services | $143 million | $151 million | $159 million |
| Administrative services | $143 million | $151 million | $159 million |
What is the significance of UIUC’s earning statement?
+UIUC’s earning statement provides a comprehensive overview of the university’s financial performance, highlighting its revenue streams, expenses, and changes in net position. This information is essential for stakeholders, including students, faculty, staff, and investors, to assess the university’s financial health and sustainability.
How does UIUC’s revenue mix impact its financial sustainability?
+UIUC’s revenue mix, which includes tuition and fees, grants and contracts, investments, and auxiliary enterprises, helps to mitigate risks and ensure financial sustainability. However, the university’s reliance on tuition and fees highlights the need for strategic planning to manage enrollment and pricing strategies.
