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UPR. (2017, Abril 27) - Plan Fiscal de La UPR (Borrador)
UPR. (2017, Abril 27) - Plan Fiscal de La UPR (Borrador)
Fiscal Plan
April 30, 2017 - San Juan, Puerto Rico
1
Disclaimer
The University of Puerto Rico (the University), and each of their respective officers, directors, employees, agents, attorneys, advisors, members, partners or
affiliates make no representation or warranty, express or implied, to any third party with respect to the information contained herein and all Parties expressly
disclaim any such representations or warranties. The University has had to rely upon preliminary information and unaudited financials for 2016, in addition to
the inherent complexities that are part of a university in transition.
The Parties do not owe or accept any duty or responsibility to any reader or recipient of this presentation, whether in contract or tort, and shall not be liable for
or in respect of any loss, damage (including without limitation consequential damages or lost profits) or expense of whatsoever nature of such third party that
may be caused by, or alleged to be caused by, the use of this presentation or that is otherwise consequent upon the gaining of access to this document by such
third party.
This document does not constitute an audit conducted in accordance with generally accepted auditing standards, an examination of internal controls or other
attestation or review services in accordance with standards established by the American Institute of Certified Public Accountants or any other organization.
Accordingly, the Parties do not express an opinion or any other form of assurance on the financial statements or any financial or other information or the
internal controls of the University and the information contained herein.
Any statements and assumptions contained in this document, whether forward-looking or historical, are not guarantees of future performance and involve
certain risks, uncertainties, estimates and other assumptions made in this document. The economic and financial condition of the University and its
instrumentalities is affected by various financial, social, economic, environmental and political factors. These factors can be very complex, may vary from one
fiscal year to the next and are frequently the result of actions taken or not taken, not only by the University and its instrumentalities, but also by entities such as
the government of the United States. Because of the uncertainty and unpredictability of these factors, their impact cannot be included in the assumptions
contained in this document. Future events and actual results may differ materially from any estimates, projections, or statements contained herein. Nothing in
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government instrumentality in the Government or an admission of any fact or future event. Nothing in this document shall be considered a solicitation,
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Introduction
Institutional Profile
4
Guiding Principles of the UPR Fiscal Plan
1. Seeks to meet the fiduciary responsibility of the 6. Commits to its fiscal responsibility with specific
University with Puerto Rico while maintaining revenues and expenditures measures to support the
institutional integrity and financial stability. achievement of its strategic sustainable
management goal.
2. Protects the necessary human, financial, technical,
and capital resources needed to support the 7. Nurtures the innovation and transformation of
sustained achievement of the UPR mission. academic endeavors, research and the creation of
knowledge, as well as its technological structures.
3. Centers on the strengthening of the diversity and
uniqueness that characterizes the UPR System for 8. Reinforces institutional capacities without affecting
the successful attainment of the UPR 2017-2022 access, social responsibility, quality of services and
Strategic Plan. professional and vocational success of its
constituents.
4. Recognizes the complexities of the external
environment aiming to position itself as a key 9. Prioritizes administrative and academic
contributor to the development of local economies. transformations that are guided by efficiency and
effectiveness criteria.
5. Aims to champion social, cultural, and economic
growth in alignment with the needs and priorities of 10. Allows for the development of capacity and
the private and public sectors while strengthening creativity among teaching and non-teaching
the academic experience. personnel to implement the necessary changes.
Educational Service to
Environment Research and Diverse Sustainability
Creative Work Communities STUDENT
To enhance and To attain
differentiate To increase sources To promote growth operational
academic of external funding in local economies efficiencies and to SUCCESS
programs and to secure and to value secure fiscal
according to higher patents cultural and artistic stability
learning trends expressions
The Universitys main sources of revenue from the Government of Puerto Rico for
the current fiscal year ending on June 30, 2016-17 are:
UPR Appropriation Formula from Act No. 2, 1966 $ 833.9M
Additional Appropriations for Essential Services provided by the UPR
to the Government of Puerto Rico through Medical School,
Puerto Rico Seismic Network, Technology Assistance Program and
other programs for Student Financial Assistance $ 38.5M
Revenues from the Gambling Law, Act No. 36, 2005 (slot machines)
for operating expenses and debt service $ 62.0M
25%
19.8%
20% 15.0% 16.0%
14.2%
15% 12.2%
10%
5%
0%
-5% 0.0%
-3.0%
-10% -5.1% -5.0%
-7.3% -7.9% -9.0% -9.3%
-15%
-15.8% -14.3% -15.7%
-20%
-18.6%
-25% -21.3%
Under 5 to 9 10 to 15 to 20 to 25 to 30 to 35 to 40 to 45 to 50 to 55 to 60 to 65 to 70 to 75 to 80 to 85
5 years years 14 19 24 29 34 39 44 49 54 59 64 69 74 79 84 years
years years years years years years years years years years years years years years years and
over
11
Summary of Cash Flows Measures
The UPR Fiscal Plan considers a reduction in the annual appropriation from the Government of Puerto Rico of
$241 million by fiscal year ending June 30, 2021, as indicated by the Governor of Puerto Rico on his letter to the
Financial Oversight and Management Board on March 20, 2017.
Fiscal Years Ending June 30,
2018 2019 2020 2021 2022 2023 2024 2025 2026
Expense Reduction Measures $ 91.50 $ 125.67 $ 149.20 $ 166.04 $ 167.46 $ 166.04 $ 164.61 $ 163.18 $ 162.32
Revenue Measures $ 57.50 $ 54.33 $ 60.80 $ 74.96 $ 73.54 $ 74.96 $ 76.39 $ 77.82 $ 78.68
Total Impact of Measures $ 149.00 $ 180.00 $ 210.00 $ 241.00 $ 241.00 $ 241.00 $ 241.00 $ 241.00 $ 241.00
13
Expense Reduction Measures (Cash Outflows)
(changes in $ millions)
Expenses Reduction Measures
(Cash Outflows) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Reduction to Central Administration
and Other Systemic Services $ 9.00 $ 10.00 $ 18.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00
Reorganization of Administrative
Structures and Academic Support
Services 5.00 16.00 25.00 25.00 30.00 30.00 30.00 30.00 30.00
Procurement and General Expense
Reductions 17.50 24.67 26.20 36.04 32.46 31.04 29.61 28.18 27.32
Adjustments to Employees Medical
Insurance, Christmas Bonus 25.00 25.00 30.00 35.00 35.00 35.00 35.00 35.00 35.00
Reduction on Institutional Capital
Improvements Reserve Fund 19.00 34.00 34.00 34.00 34.00 34.00 34.00 34.00 34.00
Debt Service Payment Reduction 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00
Total Expenses Reductions Measures
(Cash Outflows) $ 91.50 $ 125.67 $ 149.20 $ 166.04 $ 167.46 $ 166.04 $ 164.61 $ 163.18 $ 162.32
19
Revenue Measures (Cash Inflows) Expected Changes
(changes in $ millions)
Revenue Measures (Cash Inflows) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Tuition Increase, Undergraduate Student
$ 6.74 $ 6.74 $ 6.74 $ 6.74 $ 6.74 $ 6.74 $ 6.74 $ 6.74 $ 6.74
Enrollment (with Pell Grant)
Tuition Increase, Undergraduate Student
25.59 14.74 9.02 7.60 6.17 7.60 9.02 10.45 11.31
Enrollment (without Pell Grant)
Tuition Increase, Graduate Student 3.67 2.86 2.04 1.63 1.63 1.63 1.63 1.63 1.63
Reduction in Special Tuition Exemptions 1.50 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Executive Order No. 2017-021 5.00 10.00 10.00 15.00 15.00 15.00 15.00 15.00 15.00
Department of Education
10.00 10.00 10.00 15.00 15.00 15.00 15.00 15.00 15.00
(training to teachers and tutoring)
Municipalities Technical Agreements - - 4.00 6.00 6.00 6.00 6.00 6.00 6.00
PR Science & Technology Trust, patent - - 3.00 4.00 4.00 4.00 4.00 4.00 4.00
Virtual University - 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Other Revenues Initiatives
5.00 6.00 11.00 14.00 14.00 14.00 14.00 14.00 14.00
(i.e. external funds, gambling law)
Total Revenue (Cash Inflows) Measures $ 57.50 $ 54.33 $ 60.80 $ 74.96 $ 73.54 $ 74.96 $ 76.39 $ 77.82 $ 78.68
62,000
62,000
59,000
56,000 57,800
55,700 56,000
55,400 55,200
53,000 54,700 54,200 54,700
FY FY FY FY FY FY FY FY FY
2018 2019 2020 2021 2022 2023 2024 2025 2026
Total Undergraduate Students (with Pell Grant) 39,200 39,200 39,200 39,200 39,200 39,200 39,200 39,200 39,200
Total Undergraduate Students (without Pell Grant) 16,800 13,000 11,000 10,500 10,000 10,500 11,000 11,500 11,800
Total Graduate Students 6,000 5,600 5,200 5,000 5,000 5,000 5,000 5,000 5,000
25
Organic Law
Founded in 1903 Mission
The University of Puerto Rico To serve the people of Puerto Rico and contribute to the
(the University) is a state development and enjoyment of the fundamental, ethical
supported university system and esthetic values of Puerto Rican culture, and committed
created by Law No. 1 to the ideals of a democratic society.
of January 20, 1966, To advance its mission, the University strives to provide
Law of the University high quality education and create new knowledge in the
of Puerto Rico Arts, Sciences and Technology.
(Act No. 1), as amended.
Eight members
The Secretary of One ex-officio
appointed by
the Department member of the
the Governor of
Two tenured Two full-time of Education of Fiscal Agency
Puerto Rico and
professors students Puerto Rico and Financial
confirmed by
becomes ex- Advisory
the Senate of
officio member Authority
Puerto Rico
The President of the University, appointed by the The Chancellors, appointed by the Board of
Board of Governors, is the Chief Executive Officer Governors following the recommendation of the
(CEO) of the Institution. President of the University, under the Presidents
oversight.
Ro Piedras Mayagez Medical UPR UPR UPR UPR UPR UPR UPR UPR
Campus University Science Aguadilla Arecibo Bayamn Carolina Cayey Humacao Ponce Utuado
Campus Campus
MSCHE accreditation is
fundamental for the
Since 1946, the UPR maintains financial stability of the
institutional accreditation by University.
the Middle States Commission Without this
on Higher Education (MSCHE) accreditation the
as its leading credential to University would not be
validate and strengthen the authorized to manage
quality and integrity of its Title IV funds.
endeavors in the framework of This is one of the basic
internationally recognized requirements
standards. established by the US
Department of
Education.
Baccalaureate, 108 , 2%
64,000
62,182
62,000
60,351
60,000
57,772 58,104
58,000 57,482
56,000
54,000
2012-13 2013-14 2014-15 2015-16 2016-17
68.0%
$5,730 65.5%
66.0%
30,000
62.8% 63.1%
64.0%
$5,645 20,000 62.0%
60.0%
10,000
58.0%
0 56.0%
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2013-14
2014-15
2015-16
2016-17
2017-18
Matrcula Total
Undergraduate Sub Graduada
Enrollment Total
Pell Participantes
Grant FPell
Participants % Participacin
%Participation