2013-14 Operating & Capital Budget Plan - Cornell University ...

Operating Budget — Details20WEILL CORNELL MEDICAL COLLEGEResourcesResources for the Weill Cornell Medical College andWeill Cornell Graduate School of Medical Sciencesfor 2013-14 are projected to reach $1,533.3 million, anincrease of 7.4 percent or $106.2 million over the forecastfor 2012-13.• Tuition and fees are budgeted at $36.4 million, anincrease of $2.3 million, or 6.8 percent, from theforecast. Tuition at the Medical School will increaseby 2.9 percent to $48,500. Graduate Schooltuition will increase by 4.2 percent to $31,420.• Restricted gifts are expected to total $57.4 million,an increase of 3.6 percent or $2.0 million from the2012-13 year forecast. The plan includes anticipatedgifts to be received to support strategic planoperating programs.• Direct costs of sponsored programs are plannedto decrease 3.4 percent, or $4.5 million from the2012-13 forecast, to $126.0 million. The plan includesan anticipated 5.0 percent decrease in current NIHsupport. Recoveries for facilities and administrativecosts (F&A) from sponsored programs arealso expected to decline in conjunction with thedirect costs. The federal indirect cost recoveryrate has been negotiated to increase by 0.5 percentto 69.5 percent. This rate is effective until June 2015.• Sponsored programs (Qatar) will increase $12.8million or 29.7 percent, reflecting program supportof the Qatar Biomedical Research Agreement.• Revenues from the Physician Organization (PO)are planned at $825.5 million, a $77.3 million or 10.3percent increase from the 2012-13 forecast. Thisplan includes the opening of clinical offices in theUpper West Side of Manhattan and the plannedexpansion of the college’s network physicians.• Revenues for services purchased by the New YorkPresbyterian Hospital (NYPH) are expected tototal $105.1 million, $2.1 million greater than theforecast. These services include professionalcosts related to hospital services and supervisionand training of NYPH residents.• Funding from the Qatar Foundation reflects supportof $86.3 million to operate the academic programin the Weill Medical School in Qatar.Use of ResourcesFor the fiscal 2013-14 plan, expenditures are expectedto total $1,529.6 million, an increase of 7.4 percent, or$105.1 million over the 2012-13 forecast. The mainhighlights are (a) the expansion of the Physician Networkorganization which in turn increases insurancecosts by expanding coverage of Network doctors andgeneral expenses related to operations of the Networkdoctors’ offices and related staff, (b) a $20.8 millionincrease in funding for the Qatar Academic and ResearchPrograms, and (c) the reduction of sponsoredresearch activities due to anticipated NIH cuts.• Plan expenditures for salaries and wages includingbenefits are expected to grow 5.9 percent or $48.1million from the forecast. The majority of thegrowth is due to increases in compensation paymentsto faculty resulting from clinical activities.The plan also includes a 3 percent increase in themerit award program for faculty and staff.• Graduate financial aid costs totaling $25.5 millioninclude financial aid support for the MedicalSchool, Tri-Institutional MD/PhD, and GraduateSchool programs.• General expenses totaling $467.8 million are projectedto increase $35.1 million, or 8.1 percent from2012-13. These costs include rent, facility costs,insurance, and laboratory supplies as well asroutine operating supplies.• Qatar expenses include two components: expensesrelated to the academic program in Qatar and theresearch expenses of the Biomedical ResearchAgreement. The plan is expected to increase 17.2percent or $20.8 million to $141.6 million.• Annual debt service payments totaling $30.5 millionare budgeted to decrease by $0.3 million.Transfers To/From Fund BalancesTransfers to plant funds totaling $1.5 million are projectedfor capital acquisitions and renovations.Net from OperationsThe fiscal 2013-14 budget for the Medical College willresult in a net from operations of $2.2 million.