Situation
Censeo’s client, a public research university with a budget of more than $1 billion, faced a 10 percent decline in its net position over the prior five-year period. A recent credit ratings downgrade, state funding pressures, and volatility in its Clinical Services division due to the Affordable Care Act were causing financial strain. Censeo was brought in by the Office of the Chief Financial Officer (OCFO) to assess and quantify the overall financial health of the university and develop longer-term financial management practices to improve performance.
Approach
Working closely with the Senior Vice President for Finance & Administration and Chief Operating Officer, as well as other key leadership from across the university, Censeo conducted a 12-week comprehensive review of whole-of-university financials. This included assessing historical drivers of financial performance as well as benchmarking key financial ratios and trend analysis against peer universities.
In addition to the historical and peer analyses, the Censeo team also conducted a number of other relevant financial assessments, including an evaluation of cash management, and treasury and related foundation policies and operations. Censeo also built a dynamic financial tool to project the university’s three key financial statements based on a range of operating and market assumptions. In order to capture data and develop findings, Censeo conducted a range of university-wide interviews in addition to deep quantitative and qualitative analysis of financial drivers, policies, and practices.