Report 23-25 | December 2023
The University of Wisconsin (UW) System, which is rebranding itself as the Universities of Wisconsin, provides postsecondary academic education for approximately 161,000 students. As of June 30, 2023, UW System included 13 four-year universities, 13 two-year branch campuses associated with a university, UW System Administration, and an 18-member Board of Regents.
We provided unmodified opinions on UW System’s financial statements as of and for the years ended June 30, 2023, and June 30, 2022. These financial statements account for the financial position and activity of UW System. We conducted this financial audit by auditing UW System’s financial statements in accordance with applicable government auditing standards, issuing our auditor’s opinions, reviewing internal controls, and issuing our auditor’s report on internal control and compliance. We also reviewed UW System program revenue balances as of June 30, 2023.
Net position provides a measure of overall financial condition. On the basis of generally accepted accounting principles (GAAP), UW System’s net position was $6.4 billion as of June 30, 2023. UW System total revenue increased from $5.9 billion in fiscal year (FY) 2021-22 to $6.3 billion in FY 2022-23, or by 6.8 percent. Student Tuition and Fees totaled $1.5 billion and accounted for 23.8 percent of UW System’s total revenue in FY 2022-23. UW System expenses increased from $5.5 billion in FY 2021-22 to $6.4 billion in FY 2022-23, or by 16.4 percent. Total Salary and Fringe Benefits was UW System’s largest expense and totaled $4.1 billion, or 64.1 percent of UW System’s total expenses in FY 2022-23.
On a budgetary basis, UW System’s total program revenue balance was $1.6 billion as of June 30, 2023. Of that amount, $1.1 billion was from unrestricted sources, such as tuition and auxiliary operations. As of June 30, 2023, UW System’s unrestricted program revenue balances were $9.4 million (0.8 percent) less than they were as of June 30, 2022. Program revenue balances from unrestricted sources declined at 10 UW institutions after increasing at 11 UW institutions in FY 2021-22. Unrestricted program revenue balances ranged from $7.6 million at UW-Oshkosh to $496.7 million at UW-Madison.
Program revenue balances increased at UW Madison and UW Systemwide due, in part, to lower than anticipated costs for the Administrative Transformation Program, which is an ongoing project to replace major information technology systems. Total tuition program revenue balances declined 17.3 percent, from $298.3 million as of June 30, 2022, to $246.7 million as of June 30, 2023, including declines at 12 UW institutions. The decline was due, in part, to a long-term trend in declining enrollment at most UW institutions. In June 2023, UW System hired a contractor to assess the financial health of UW institutions and results from the review are expected in 2024.
