How a college realigned resources and strategy to enhance fiscal position

Client need:

A higher education institution needed help to determine if its approach to resource allocation and balance between operating expenditures and revenues would support long-term fiscal viability. The institution sought help to assess short-term cash needs and revise a longer-term budget strategy to be aligned to the institution’s mission.

Baker Tilly solution:

Baker Tilly helped the institution to assess its fiscal position with a financial ratio analysis in the areas of liquidity, debt level, long-term viability and balance of assets. We were integrally involved in assessing net student revenue, cash flow projections, required operating budget allocation realignment, evaluation of non-performing assets and specifics relative to staff and faculty productivity as it related to operating costs. Our review of cash flow projections and non-performing assets resulted in significant modifications to the operating budget and critical decisions on asset ownership and management.

Results achieved:

Our team identified required changes to budget allocations, contract agreements, asset ownership and recommended strategies to enhance revenue, transform administrative infrastructure and align resources with a defined strategy for student success and retention. We worked with the CFO to redefine critical elements and interdependencies within the budget and to make significant changes, which will allow the college to reduce operating expenses by 10%, reallocate resources to distinctive programs, improve collections performance, free up existing resources and create new resources for critical operating investments.