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  • The San Juan Daily Star

UPR registers $38 million net deficit for July-November

The University of Puerto Rico’s net deficit of nearly $38 million during the five-month period that ended Nov. 30 was 141% higher than the budgeted $15.7 million net deficit.

By The Star Staff

The University of Puerto Rico (UPR) recorded a net deficit of $37.9 million between July and November, the first five months of fiscal year (FY) 2023, which began July 1, according to an unaudited draft liquidity report for November disclosed recently by the Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish initials).

The net deficit during the five-month period that ended Nov. 30 was 141% higher than the budgeted $15.7 million net deficit.

The number of employees, however, increased from 9,646 to 10,267, or 6%, from June to November. The increase in headcount is attributed to normal seasonality and attrition. By campus, the increases in headcount are primarily due to hikes at the Río Piedras, Ponce and Humacao campuses.

UPR ended November with a cash balance of $244.7 million and has an unfavorable net cash flow variance after debt service of $22.1 million compared to forecast.

“The unfavorable variance is primarily driven by lower than expected Campus‐Generated Inflows and Slot Machine receipts, and higher than expected student aid disbursements (Federal Grants, Pell and Donations),” the report notes.

The university recorded nearly $467.6 million in total revenue between July and November, which was 2% higher than the $456.5 million budgeted figure for the period. Meanwhile, expenses after debt service payments were $505.4 million, 7% more than the $472.2 million projection.

UPR ended with a bank cash balance after debt service of $244.7 million at the end of the July-November period, 8% less than the $266.8 million estimate, the report indicated.

UPR prepared its FY 2023 liquidity plan in November 2022, using the Financial Oversight and Management Board-certified budget as the baseline for liquidity planning. For FY 2023, a forecast was provided that takes into consideration timing and seasonality of cash inflows and outflows, based on conversations with UPR finance and accounting management, and based on observations of historical FY 2020 and FY 2021 actual cash flow data.

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