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The Yellow Crane, Inc.

Planning & Budget

Support operations with current evaluations.

Planning & Budget for a higher education institution involves evaluating the financial health and performance of the institution to make informed decisions, optimize resource allocation, and ensure sustainable operations. Here are some key components and modern trends and methods in financial analysis for higher education we employ in our Planning & Budget Service:

  • Financial Statements Analysis: This involves reviewing the institution's financial statements, including the income statement, balance sheet, and cash flow statement. Ratio analysis is often used to assess liquidity, profitability, and efficiency. Key ratios include current ratio, debt-to-equity ratio, return on assets (ROA), and return on equity (ROE).
  • Budget Analysis: We are analyzing the institution's budget helps identify potential cost savings, resource allocation, and financial planning. Comparing actual results to the budget allows administrators to track performance and adjust their financial strategies accordingly.
  • Cost-Benefit Analysis: We are evaluating the costs and benefits of various programs and initiatives can help prioritize investments and optimize outcomes. It ensures that resources are allocated efficiently to initiatives that provide the best return on investment (ROI).
  • Tuition and Enrollment Analysis: We are monitoring tuition rates and enrollment trends as it is critical for revenue projections. Understanding the demand for programs and the impact of tuition adjustments on enrollment can help set appropriate tuition levels to maintain financial stability.
  • Student Retention and Graduation Rates: Assessing student retention and graduation rates is vital in understanding the institution's long-term financial sustainability. We are helping to improve these rates so it can lead to increased tuition revenue and better alumni fundraising potential.
  • Endowment Analysis: For institutions with endowments, analyzing investment performance, spending policies, and long-term financial projections is crucial. Responsible endowment management can support the institution's financial stability and fund key initiatives. We are analyzing and providing recommendations for effective endowment management.

Our Methods:

  • Data Analytics and Business Intelligence: We employ advanced data analytics tools and business intelligence platforms to enable our clients to extract valuable insights from large datasets. This can helps identify trends, predict future financial challenges, and optimize decision-making.
  • Scenario Planning and Stress Testing: With increased uncertainty in the higher education landscape, many of our clients are adopting scenario planning and stress testing methodologies to model potential financial outcomes under different scenarios. We are providing support in development of relevant scenarios and stress testing methods to improve institutional preparedness and risk management.
  • Performance-Based Funding: Some governments and funding agencies are shifting toward performance-based funding models, where funding is tied to specific performance metrics, such as graduation rates, student outcomes, and research impact. We help our clients to meet requirements of such models by focusing our recommendations on outcomes and accountability.
  • Outsourcing and Shared Services: To streamline operations and reduce costs, many of our clients are outsourcing non-core functions and adopting shared services models. We analyzing such efforts and evaluate benefits from economies of scale with focus more on their core educational mission.
  • Impact of Technology on Operations: Higher education institutions are leveraging technology to automate administrative tasks, enhance student services, and improve operational efficiency. Cloud-based financial management systems, blockchain for credential verification, and AI-driven chatbots are just a few examples of technology's impact. We help our clients with transitioning to new platforms, evaluating impact, and give timely recommendations.
  • Sustainability and ESG Considerations: Environmental, social, and governance (ESG) factors are gaining prominence in financial analysis for higher education. Investors and stakeholders are increasingly interested in institutions' sustainability efforts and responsible financial practices. We help our clients to support such efforts and provide with necessary recommendations.

In conclusion, our Planning & Budget is for higher education institutions and involves a comprehensive review of financial statements, budget, tuition, enrollment, and endowment, coupled with modern trends and methods such as data analytics, scenario planning, and sustainability considerations. These tools and techniques enable institutions to make informed decisions, adapt to changing trends, and ensure long-term financial stability in an ever-evolving landscape