WVU nets $1 billion in revenue [The Dominion Post, Morgantown, W.Va.]

Sept. 30--WVU's revenue exceeded $1 billion for the second consecutive year and the university's adjusted operating margin was $5.1 million in the black for the past fiscal year.

The unaudited financial figures from fiscal year 2013 were presented to the Board of Governors during its meeting last week. FY 2013 ended June 30, audited numbers will be presented to the board in November.

In total, WVU had $1.002 billion in revenue, which is about 5 percent higher than the budgeted $948 million, according to WVU data. While the revenues were lower than last year, they were still above what was anticipated.

"We are still over one billion in total revenues for the second year," Senior Associate Vice President for Finance Dan Durbin said, later adding, "We are a $1 billion organization, no rounding required," which drew a chuckle from the board.

Part of the reason for the increase was due to about 15 percent higher than expected auxiliary revenue, which includes items such as athletic ticket sales and food purchases in the Mountainlair.

"Other revenues" were also 34 percent higher than forecasted, $73 million versus $54 million, which is attributed to higher gift revenue and investment returns.

Revenue streams that saw a drop compared to last fiscal year included grants and contracts. But, Durbin explained, most of that is due to a $71 million software donation the university received late last fiscal year.

Expenditures were also about 5 percent higher than expected, $968 million instead of $917 million. One of the main reasons was due to about a 34 percent increase in scholarships and fellowships spending than anticipated. WVU budgeted for $27 million and actually spent $37 million. There was also a slight increase in wages expenses than anticipated.

Durbin said that showed WVU is investing in the right areas -- in people with scholarships and wages, and in supplies to support those people.

Durbin said one thing to take away from the report is that WVU is financially stable. It has a strong revenue base and continues to make the right investments. Also, cash reserves have increased.

When capital expenditures are separated from operating funds, WVU finished the year with a $3.6 million operating loss. But, when other-post-employment-benefits, mainly retiree health insurance, amortization of the software donation and refinanced bonds -- which allowed them to skip a payment are factored in -- WVU finished the year with a $5.1 million adjusted surplus. Last year, WVU had about a $1.2 million adjusted surplus.

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