Auxiliary Impacts – In-Person vs. Remote Mega-Analysis

In-Person vs. Remote Mega Analysis:
Auxiliary Impacts

3m Video

Modeling College and University Housing and Dining

In our second video for the In-Person vs. Remote Mega-Analysis, we will look at the financial impacts associated with institutional auxiliary revenues such as housing and dining.

Higher education auxiliary revenues are one of the most fiscally impacted areas when examining in-person vs. remote semesters. Especially in the remote scenario, where only a very limited number of students are returning to campus, the loss of auxiliary revenues can have a lasting impact on the financial projections of a given college or university.

Why Does an In-Person vs. Remote Scenario Analysis Matter to Higher Education?

This is the biggest question facing higher education right now. Many financial leaders are asking themselves, “how would an in-person teaching scenario affect our financials versus moving to remote semesters for 2021 and 2022?"

Through this analysis series, we are hoping to help college and university decision-makers analyze and understand how the various impacts associated with these two scenarios can be modeled.

The Synario financial modeling software is ideal for this type of analysis, as it can layer in each micro-scenario and initiative independently, allowing finance professionals to explore their outlook faster than any other modeling software.

Video Transcript

Welcome to the second video of our in-person vs. remote mega-analysis, where we examine how higher education institutions could model the various aspects of in-person vs remote teaching scenarios.

In this video, we’ll show how Synario can model auxiliary impacts associated with in-person vs. remote semesters in fiscal years 2021 and 2022.

– In-Person Scenario –

Just like our last video, we can start by looking at the operating margin of our baseline scenario, showing what our operating margin would look like without the impacts of COVID-19.

Moving to our in-person scenario, changes to auxiliary revenues come from two areas; housing occupancy and dining participation. Looking at the value chart editors to the right, we can see that in-person occupancy is reduced to 80% for 2021 and 85% for 2022. The dining participation rate is also reduced to 70 and 80 percent for 2021 and 2022 respectively.

To offset the drop in occupancy, we can model what it would be like to lease a local dorm facility that adds 400 additional students to our housing projection. The dorm facility has both a revenue and expense impact and can be toggled on in the In-Person macro-scenario.

Finally, by selecting the in-person scenario from the operating margin slider, we can see that our operating margin declines for fiscal years 2021 and 2022.

– Remote Scenario –

In our remote scenario, students are not returning to campus so the occupancy rate and dining participation rate should drop dramatically for 2021 and 2022. In the value chart editor, we can see that the occupancy rate falls to 30 and 40 percent, while the dining participation drops to 25% for those two years. We also will turn off the leased dorm facility initiative for this scenario.

Turning on the Remote scenario in our operating margin graph, we can see a much steeper decline for years 2021 and 2022 than the in-person scenario. If we want to explore this outlook further, we can simply click on a new value in the Occupancy rate chart and watch our operating margin automatically update.

– Cumulative Scenarios –

Now let’s layer in the campus and student changes related to in-person and remote scenarios from our last video.

Since we are already here, let’s layer in the remote student impacts discussed in our last video. By selecting our Remote macro-scenario, we can turn on our student impacts by selecting the appropriate drop-down items. Once the scenario is saved, our operating margin will update to display the new projection.

Similarly, I can update our in-person scenario to include the in-person student impacts, save the changes, and then select our in-person scenario inside the operating margin graph to see our new in-person projection.

That’s it for this video. Check out our next video where we review and layer in personnel changes. As usual, if you have a topic you would like to see covered, email us at info@synario.com.