The Chief Finance Officer has presented to the Board of Directors of a Public University the Annual Financial Report and Statement for approval. As a member of the Board, you have been asked to study the Financial Report and prepare a paper for further discussion at the next Board meeting The University has a student population of 12,000 with 1,900 staff comprising of 1,000 academic staff and 900 Non Academic. In 2018, the University had 1600 staffs. The University has completed the construction of the main campus that will allow an increase of student capacity to 20,000. Your second task is to study Revenue and Expenditure. a) What are the key revenues and the total Revenue for 2019? Based on the revenue, who is the most important client of the university? What must you do to retain this client? b) What is Capital Expenditure? ( in the Government University a Development Fund is set up for this expenditure) What is Operating Expenditure? What was the total expenditure of the University for 2019? What does it mean if Revenue is less than Expenditure? Why had this happened? Comment on how well the Expenditure was managed in 2019. c) What would you consider as Fixed Costs for the University? Hint: consider a situation where the students have to be away from the campus for 1 year Will the lecture halls be used, if not in use would the airconditions be turned on, and if they are not switched on, will your utilities electric bills be low? d) What would be the Fixed Cost and Variable Cost per Student? Estimate the Cost Per Student Per Year borne by the University. Compare this to the fees paid by the students. How can the Cost per Student per Year be reduced ? Observation, Conclusion and Suggestions for further actions. 150 MARKS (CO2, PONI 1 CS Scanned with CamScanner The Chief Finance Officer has presented to the Board of Directors of a Public University the Annual Financial Report and Statement for approval. As a member of the Board, you have been asked to study the Financial Report and prepare a paper for further discussion at the next Board meeting The University has a student population of 12,000 with 1,900 staff comprising of 1,000 academic staff and 900 Non Academic. In 2018, the University had 1600 staffs. The University has completed the construction of the main campus that will allow an increase of student capacity to 20,000. Your second task is to study Revenue and Expenditure. a) What are the key revenues and the total Revenue for 2019? Based on the revenue, who is the most important client of the university? What must you do to retain this client? b) What is Capital Expenditure? ( in the Government University a Development Fund is set up for this expenditure) What is Operating Expenditure? What was the total expenditure of the University for 2019? What does it mean if Revenue is less than Expenditure? Why had this happened? Comment on how well the Expenditure was managed in 2019. c) What would you consider as Fixed Costs for the University? Hint: consider a situation where the students have to be away from the campus for 1 year Will the lecture halls be used, if not in use would the airconditions be turned on, and if they are not switched on, will your utilities electric bills be low? d) What would be the Fixed Cost and Variable Cost per Student? Estimate the Cost Per Student Per Year borne by the University. Compare this to the fees paid by the students. How can the Cost per Student per Year be reduced ? Observation, Conclusion and Suggestions for further actions. 150 MARKS (CO2, PONI 1 CS Scanned with CamScanner