Based on its review of relevant documentation, the Goal 8 Committee determined that the University successfully translates its strategic goals into short-range financial plans, has sufficient and continuing funding to meet those goals, and manages its financial resources in an effective and efficient manner. It therefore provides a stable financial environment. Major sources of funding are stable or growing. There is some concern, however, about the erosion of tuition revenue due to declining enrollments.

In summary, the strengths, weaknesses, opportunities, and threats with regard to the financial environment are as follows:

Internal Assessment of the Organization
Strengths Funded by State at higher level than comprehensive institutions Affordable tuition Strong financial position of limited indebtedness Competent financial managers Growth in sponsored research and gifts Reorganization of Advancement Low maintenance for facilities and no deferred maintenance Relative autonomy from detailed State financial control	Weaknesses High-cost science and technology programs Declining enrollment = declining tuition and fees No retrenchment plan No long-term, comprehensive financial plan
Opportunities Healthy State and national economy Formula funding pegged to Carnegie classification Significant base of successful alumni	Threats State constraints on tuition increases Reduction in State funding pending outcomes of MPSERS and Durant cases Continued decline in Federal support for basic research Reluctance to fully fund indirect cost recovery for sponsored research
External Assessment of the Environment

Action Plan

To take advantage of opportunities and remedy concerns with regard to the financial environment, the following action plan is recommended. Responsible parties for implementing the recommendations are identified.

This Action Plan will be integrated into the strategic planning process for 1998/99.

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