The Board of Regents approved a summary of revenues and expenditures during the first quarter of fiscal year 2025 during its Friday morning committee meeting in the Jody Richards Hall Regents Room.

FY 2025 quarter one, which ended Sept. 30, saw expenses of $112.8 million, 34% of the $334.6 million budget, and revenue of $138.6 million, 41% of the budget, detailed in a statement here. This compares to expenses at 33% and revenue at 39% after the first quarter of the FY 2024 budget.

“In my opinion, that’s excellent progress from prior years,” Susan Howarth, executive vice president for strategy, operations and finance, said. 

Howarth said net tuition revenue is “the single strategic focus on the revenue side of the budget” since schools can lose revenue through increased enrollment. Net tuition revenue saw almost $64 million in quarter one, per the statement. 

WKU President Timothy Caboni said statewide, there can be an internal “complete focus” on student headcount. He said while population metrics are important, “the reality is that you can buy those numbers.”

“What we’ve been focused on ensuring is the fiscal health of the institution, not focusing on a number of students, but rather ensuring that net tuition is stable and growing,” WKU President Timothy Caboni said. 

Howarth said personnel expense is similar to last year while operating expense has increased, primarily in the “Other Financial Assistance” category due to more PELL and CAP awards and in the “Supplies & Operating” category due to higher property insurance. 

Howarth said she, Caboni and Provost Bud Fischer continue to monitor inflationary increases and all campus units “to make sure that everybody is staying within the tails and no one is getting out of control.”

“Our budget is in great shape,” Caboni told the Herald. “We’re in better shape than last year and we’re going to be in better shape next year as well.”

Shane Spiller, faculty regent, asked Caboni how it is decided which “competing” units receive additional funds or personnel if it’s sought.

“I think it’s pretty simple,” Caboni responded. “This is the amount of money you have, don’t overspend it. And if you need more, we can talk about how we allocate revenue to meet those needs. But until someone has the conversation around ‘this is absolutely mission critical,’ then don’t add it.”

Caboni said it is important to recognize the RAMP model makes it easy for units to understand what money is allocated, which must be taken into account when planning. He said he’s seen “good progress” from Athletics, which he expects to continue. 

The Regents also approved:

• The auditor’s report and financial statements for FY 2024. Jennifer Williams, Forvis Mazars audit partner, said the financial reports provided to the agency present fairly. 
• A resolution to secure a $10 million line of credit through JPMorgan Chase Bank to be used “only in the event the timing of revenue collections does not match expense payment timing,” according to the meeting agenda.
• Faculty and staff personnel actions from March 1 to Sept. 30 and one-time compensation payments in the Sept. 1 to Sept. 30 payroll period.
• A recommendation for revising BOR bylaws, which will shift the responsibility of auditing from the Executive Committee to the Finance and Budget Committee, which will be renamed the “Finance, Budget, and Audit Committee.”

Content Editor Ali Costellow can be reached at [email protected].