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, PO111 PUBLIC UNIVERSITY OF MALAYSIA REVENUE AND EXPENDITURE STATEMENT as of 31 December 2019 2019 2018 REVENUE Government Grant Other Grants Student Fees Others 165,931,500 37.292,514 34,958,878 29,000,462 164,676,397 38,934,593 32,281.044 30,002,629 267.183.352 265,894,663 126,842,084 113.421.496 12,117.943 25,142,647 94,504 5,478,033 12.078 118,756,998 104.927.517 17,103,258 22,61 2,643 97,756 TOTAL REVENUES EXPENDITURES Emoluments Supply and Services NOTE 31 Other Expenses (incl. Student Activities) Depreciation of Assets, Plants and Equipments Bad Debts Less Revaluation of Assets Employee Benefits TOTAL EXPENDITURES INCOMEXLOSS) BEFORE TAX TAX INCOME/LOSS) AFTER TAX 283,108,785 263,498,172 1.596,491 (15,925,433) 3.261 (15,928,694) 2.396,491 OTHER REVENUE AFTER TAX Item will not be Reclassified as Profit or Loss Net Gains from Revaluation of Real Estate 251.971,732 236,046,038 2,396,491 2018 PUBLIC UNIVERSITY OF MALAYSIA REVENUE AND EXPENDITURE STATEMENT as of 31 December 2019 NOTE 31 2019 SUPPLY AND SERVICES Travel Expenses 3.556,295 Goods Transportation 49.290 Communication and Utilities 13.732,198 Rentals 12.757,084 Raw Material Supplies, Maintenance and Repair 865,650 Other Supplies 9,911,341 Maintenance and Minor Repair Services 14,129,874 Professional Services and Hospitalitics 58,419,764 3,112,734 21.901 11.963,695 12.999.142 726,424 9.349,484 12,704,272 54,049,865 113.421,496 104.927.517 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