A Performance Audit of the Utah Telecommunication Open ...

The data in Figure 3.2 shows that, while the new marketingprogram began with a head start on planned enrollment, newsubscriptions have grown at a much slower pace than anticipated inthe five-year plan. To achieve the expected number of new subscribers,UTOPIA, under its new UIA-financed plan, would need to add about450 subscribers each month for the first year. From July to April, theagency added about 190 subscribers each month. Despite focusedmarketing efforts, the agency has been consistently missing itssubscriber targets.UTOPIA Reports UIA Revenues Are Meeting Expectations.Apart from subscribers, another indicator of the network’s success isits revenue growth. UTOPIA officials argue that while their subscribercounts are below target, the real test of network health will berevenues. Figure 3.3 shows that reported accumulated revenues wereperforming better than plan targets until May, 2012.Figure 3.3 UIA Accumulated Revenues Compared to PlanProjections. For most of fiscal year 2011, UIA revenues exceededexpectations at first because the financial plan assumed the agencywould offer promotional deals which were not offered as modeled. Also,business revenues have exceeded expectations.700,000600,000UIA accumulatedrevenues initiallyperformed better thanprojected because ofearlier than anticipatedrevenue collection.500,000400,000300,000200,000100,000PlanActual‐Source: Data provided by UTOPIA administration.The CFO reports that UTOPIA staff originally modeled a possiblepromotion into their projections that they did not use, allowing more- 34 -A Performance Audit of the Utah Telecommunication Open Infrastructure Agency (August 2012)