Athens State University (ASU) has a sound financial base and a proven record of financial stability since being accepted into the Alabama College System (now the Alabama Community College System) in 1975. The University’s financial resources are provided primarily by appropriations from the State of Alabama and tuition and fees. The University’s financial stability is evidenced in the annual audited financial statements (2003, 2004, 2005, 2006, 2007, 2008, 2009) prepared by the University and audited by the Department of Examiners of Public Accounts of the State of Alabama. Each annual audited financial statement includes a Statement of Net Assets and a Statement of Revenues, Expenses, and Changes in Net Assets. The audited financial statements, along with the management representation letter for the most recent fiscal year, demonstrate that Athens State University has been and continues to be a financially stable academic institution, and that the University’s financial base is providing excellent support for the degree programs and services offered by the institution.

For the fiscal years 2004 through 2007, the University increased its unrestricted net assets, exclusive of plant and plant-related debt, each year. During the fiscal year (FY) ending September 30, 2008, the University made a cash payment for the purchase of a facility, which resulted in that year reflecting a decrease in the University’s unrestricted net assets, exclusive of plant and plant-related debt. Additionally, during FY 2009, the State of Alabama declared proration in the 11th month of the year, resulting in a reduction in the University’s state appropriations. However, despite this reduction, the University’s unrestricted net assets, exclusive of plant assets and plant-related debt, still showed a slight increase for FY 2009.

In order to maintain financial stability in the event of future statewide proration, the University maintains approximately three and one-half months of operating reserves. Funds in reserve have increased approximately 40% since 2004.

The University is in the process of performing major capital improvements to selected University buildings. In 2007, the University entered into a bond issue for $11,250,000 in new debt. The proceeds of this new debt are maintained in a Money Market/Investment account to be used for future construction projects for the University. To cover the debt, the University added a $6 per credit hour facilities fee. At current enrollment levels, this fee covers a substantial amount of the cost of the additional debt payments.

The budget planning process is a participatory activity at all levels of the institution. Prior to fall 2009, the planning process was initiated by the Vice President for Financial Affairs, who distributed budget packets to the various academic, administrative and support units. Using each unit’s strategic short range plans and long range initiatives, and with input from the members in each unit, unit budgets were developed. Budget hearings were then held to ensure that the budgeting process was deliberative, comprehensive and participatory. Using the results of the hearings, the Vice President for Financial Affairs then assimilated a preliminary budget and schedules of unfunded positions and critical needs that were then submitted to and reviewed by the President’s Cabinet. The President then made the final decisions regarding the proposed budget. The University then submitted the formal budget to the Department of Postsecondary for approval. The aforementioned process guided the planning process for the most recently approved University budget approved by the Alabama State Board of Education in September 2009.

Starting in the fall of 2009, oversight of the budget planning process is the responsibility of the Budget Advisory Committee (BAC), chaired by the Vice President for Financial Affairs. Additional information on the current budget planning process can be found in the narratives for Core Requirement 2.5 and Comprehensive Standard 3.10.4.