The institution's recent financial history demonstrates financial
stability.
[Compliance]
Narrative:
The University of Alabama in Huntsville (UAH) is in compliance with Principle 3.10.1 because the University's recent financial history demonstrates financial stability, despite unfavorable market conditions and a continued decline in the percentage of funding from State appropriations in recent years.
UAH is part of The University of Alabama (UA) System, which also includes the University of Alabama (UA) and the University of Alabama at Birmingham (UAB). All three campuses follow common reporting and budget guidelines established by the Board of Trustees of The UA System, and are subject to the same audit standards. Both UA and UAH also have the same SCT Plus Financial Records System.
Detail of the University's financial position over the past ten years is presented. The net assets have increased from $62.7 million in 1995 to $132.0 million in 2004, an increase of 111 percent. Both major bond rating institutions, Moody's and Standard & Poor's, upgraded UAH's outlook from stable to positive in 2004 ratings. Some of the primary reasons cited for the upgrade were healthy operating margins, healthy balance sheet profile, and a solid market niche.
As State appropriations have remained relatively stable in dollar value over the past five years, and have actually declined as a percentage of total revenues, other primary revenue sources have increased. Federal grants and contracts have exhibited steady growth, from $29.5 million in 1995 to $46.2 million in 2004, an increase of 57 percent. Tuition and fees have grown both in dollar value and as a percentage of the overall budget due to enrollment gains and rate increases. Contributions, endowments, and investment earnings are also up.
The University's Educational and General (E&G) budget has continued to increase as a result of the fiscally responsible measures that have been taken. The University has enhanced student recruiting and retention programs, faculty recruiting, and fundraising, and, therefore, has produced an increase in enrollment. These increases have allowed the University to continue programs and provide new programs that have been determined necessary to provide an excellent college education to the institution's students.
The University's endowment funds continue to grow , with an increase in total value in FY04 and FY03 after two years of market-value declines in FY02 and FY01. University endowments grew from a market value of $2.0 million in 1995 to $3.8 million in 2004, an increase of 91 percent. The UAH Foundation endowment funds grew from a market value of $8.3 million in 1995 to $18.9 million in 2004, an increase of 128 percent.
In summary, UAH continually evaluates its financial operations to support its mission of dedication to excellence in teaching, research, and service.
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Source
Location
1
Board Resolution for Tuition and Fees for June 2004 Meeting
2
Full-Time Equivalent Student Enrollment
3
Moody's Rating Letter, September 13, 2004
4
Standard & Poor's Rating Letter, September 13, 2004
5
Summary of Statements of Net Assets
6
Summary of Statements of Revenues, Expenditures and Changes in net Assets
