Changes in USMB’s Financial Position, 2015–2018
Source: Financial Statements, Debate on’ori
Updated: September 2019
Table 1 – Excerpts from USMB’s Financial Statements for 2015–2018 – Revenues and Expenses
Table 1 presents, for the fiscal years 2015 through 2018, changes in several major revenue and expense items from the financial statements of the consolidated budget, as well as net income and cash flow from operations (CAF). It should be noted that the USMB’s financial statements have been certified without qualification by the auditor (Mazars) since 2012. This table highlights several long-term trends.
- Revenue increased by €6.5 million between 2015 and 2018.
- In terms of expenses, payroll costs account for a slightly higher share: 78.7% in 2014 and 79.6% in 2018. This line item increased by 7.6% between 2015 and 2018, faster than other expenses, and also faster than the subsidy for public service charges (SCSP) intended to finance it (+7.1%).
- The result was positive for all four fiscal years, but remained low (0.8% of revenue in 2017 and 2018).
- The CAF is positive and has so far been sufficient to cover our investments not funded by other sources (research, educational, major maintenance, etc.), thereby limiting withdrawals from working capital.
Table 2 – Excerpts from USMB’s Financial Statements for 2015–2018 – Investments and Related Financing
Table 2 shows the trend in the investment section. After peaking in 2017, the volume of funds allocated to fixed assets returned to its 2016 level. The year 2018 saw the completion of the sports hall on the Jacob-Bellecombette campus and the building for the Polytech engineering school in Bourget-du-Lac. The amount of depreciation and amortization expenses generated by investments financed with internal funds rose slightly by 1.6% (€1.520 million in 2018 and €1.495 million in 2017), confirming that our annual investment pace using internal funds is appropriate.
The change in working capital resulting from the 2018 budget execution was €126,000; this amount was increased by off-budget accounting adjustments. At the end of 2018, working capital represented 34 days of disbursable operating expenses.
Table 3 – Selected Key Ratios for 2015–2018 (Consolidated Budget)
Table 3 summarizes the figures for several key indicators. Working capital and cash on hand, expressed in days of cash expenditures, are significantly above the warning thresholds set by our regulatory authorities (15 days and 30 days, respectively). The ratio of personnel expenses to collectible revenue remains at the warning threshold (82%–83%), requiring us to approach our employment policy with responsibility. The portion of the increase in total payroll attributable to the shift-aging-skill level factor (GVT balance) calculated for 2018 amounts to €605,000.
The financial indicators derived from the balance sheets (financial and cash flow) point to a sound financial position, free of excesses, which is maintained through rigorous and prudent management of resources, particularly human resources.