UNLV has experienced notable financial trends over the past two fiscal years, reflecting both growth and challenges in its operations. Below is a breakdown of the financial trends related to UNLV, focusing on key line items from the university’s financial statements for the years ended June 30, 2024, and 2023.
Key Financial Trends
Operating Revenues
Student Tuition and Fees:
2024: $225,472,000
2023: $222,479,000
Trend: A steady increase, indicating stable enrollment and financial contributions from students.
Federal Grants and Contracts:
2024: $98,044,000
2023: $74,992,000
Trend: A significant rise, showcasing growth in external funding for research and programs.
State Grants and Contracts:
2024: $36,398,000
2023: $24,506,000
Trend: A notable increase, reflecting stronger support from Nevada for university initiatives.
Sales and Services of Auxiliary Enterprises:
2024: $47,887,000
2023: $44,905,000
Trend: A moderate increase, indicating growth in auxiliary services such as housing, dining, and other campus-related enterprises.
Other Operating Revenues:
2024: $4,680,000
2023: $4,406,000
Trend: A slight increase, showing consistent performance in miscellaneous revenue streams.
Operating Expenses
Employee Compensation and Benefits:
2024: $671,354,000
2023: $592,230,000
Trend: A substantial increase, reflecting higher payroll costs and benefits, likely due to expanded staffing and competitive compensation.
Utilities:
2024: $19,788,000
2023: $17,409,000
Trend: A steady rise in utility expenses, possibly due to campus expansion or increased operational demands.
Supplies and Services:
2024: $201,919,000
2023: $176,991,000
Trend: A significant increase, indicating higher spending on operational supplies and services.
Scholarships and Fellowships:
2024: $37,521,000
2023: $35,270,000
Trend: A moderate increase, showcasing continued investment in student financial aid.
Depreciation:
2024: $63,126,000
2023: $58,243,000
Trend: A steady rise, reflecting ongoing wear and tear on capital assets and investments in infrastructure.
Non-Operating Revenues
State Appropriations:
2024: $317,550,000
2023: $237,707,000
Trend: A significant increase, highlighting stronger financial support from the state government.
Federal Grants and Contracts:
2024: $60,867,000
2023: $91,003,000
Trend: A decrease, indicating reduced federal funding compared to the previous year.
Gifts:
2024: $27,473,000
2023: $27,229,000
Trend: A slight increase, showing consistent donor contributions to the university.
Investment Income:
2024: $41,874,000
2023: $36,388,000
Trend: A notable rise, reflecting improved returns on university investments.
Capital Financing Activities
Capital Appropriations:
2024: $22,210,000
2023: $12,061,000
Trend: A significant increase, indicating stronger state support for capital projects.
Purchases of Capital Assets:
2024: $(40,785,000)
2023: $(173,613,000)
Trend: A sharp decrease in capital asset purchases, suggesting a slowdown in infrastructure investments.
Principal Paid on Capital Debt and Leases:
2024: $(26,751,000)
2023: $(26,368,000)
Trend: Relatively stable, reflecting consistent debt repayment efforts.
Cash Flow Trends
Net Cash Used by Operating Activities:
2024: $(411,713,000)
2023: $(328,465,000)
Trend: A significant increase in cash outflows, indicating higher operational costs.
Net Cash Provided by Noncapital Financing Activities:
2024: $388,063,000
2023: $320,707,000
Trend: A substantial increase, driven by higher state appropriations and federal grants.
Net Cash Used by Capital Financing Activities:
2024: $(52,641,000)
2023: $(190,228,000)
Trend: A sharp decrease, reflecting reduced spending on capital projects.
Net Cash Provided by Investing Activities:
2024: $57,326,000
2023: $163,196,000
Trend: A significant decrease, indicating lower investment activity compared to the previous year.
Conclusion and Projections for Fiscal Year 2025
Projected Budget Report for 2025
Based on the trends observed in 2024, the 2025 fiscal year budget report may show:
Operating Revenues: Continued growth in tuition and fees, state grants, and auxiliary services, with federal grants potentially stabilizing or slightly decreasing.
Operating Expenses: Further increases in employee compensation and benefits, utilities, and supplies, driven by inflation and campus expansion.
Non-Operating Revenues: State appropriations are likely to remain strong, while federal grants may continue to decline. Investment income could see modest growth.
Capital Financing Activities: Capital appropriations may increase, but spending on capital assets is expected to remain conservative.
Proposed Plan to Increase Revenue and Decrease Spending
To ensure financial sustainability, UNLV Athletics should consider the following strategies:
Revenue Growth:
Expand Sponsorships: Leverage Las Vegas’ major market status to attract corporate sponsors for athletic programs.
Enhance Ticket Sales: Improve fan engagement and attendance at games through targeted marketing campaigns and promotions.
Boost Fundraising: Launch initiatives to increase donor contributions, focusing on alumni and community support.
Maximize NIL Opportunities: Partner with local businesses to create NIL deals that benefit student-athletes and generate additional revenue.
Cost Management:
Optimize Staffing: Conduct a review of employee compensation and benefits to identify areas for cost savings.
Energy Efficiency: Invest in energy-saving technologies to reduce utility expenses.
Streamline Operations: Implement cost-effective measures in supplies and services without compromising quality.
Prioritize Capital Projects: Focus on high-impact infrastructure investments that align with long-term goals.
By adopting these strategies, UNLV Athletics can strengthen its financial position and continue to build a competitive and sustainable program for years to come.