SXU Welcomes New CFO Daniel Klotzbach

CFO Daniel Klotzbach — sxnews.com

The Xavierite had an opportunity to interview Saint Xavier University’s Vice President for Finance and Administration/Chief Financial Officer, Daniel P. Klotzbach.

CFO Klotzbach elaborated on his background, the financial status of the University, and goals for the future.

Klotzbach has spent decades in the education field.

“I have worked for over 30 years in finance at both Catholic and non-Catholic universities, in a variety of positions in business and finance.  Most recently I worked for over 13 years as the Vice President for Business and Finance at Illinois Wesleyan University in Bloomington, IL.  I appreciated and enjoyed my experience working at two Catholic schools:  Mount Mary College in Milwaukee, WI and Edgewood College in Madison, WI.” Klotzbach said.

“I was attracted to SXU’s clear mission which can guide the work to be done here,” Vice President Klotzbach included.

Chief Financial Officer Klotzbach aims to maintain a balanced budget.

“The IPBC (Integrated Planning and Budget Committee) was created by President Joyner in the spring of 2017.  One of its goals is to help to integrate planning and budget at SXU to create a sustainable financial model.  The various subcommittees of IPBC focus on different areas (such as creating new academic programs, finding new sources of non-tuition revenues, reducing expenses, etc.)  It is important to continue to carefully assess all expenses.  If we can do that and add new sources of revenue (specifically by adding new academic programs and majors and/or increasing enrollment for existing programs) SXU should be able to maintain a balanced budget,” Klotzbach explained.

Saint Xavier University is projected to conclude the fiscal year in the black, producing a profit. The University plans on investing this money back into the school and its students.

“This year the Board of Trustees has authorized the University to place any excess cash into the University’s quasi-endowment fund. Those funds would help to offset some of the loss of MAP (Illinois’ Monetary Assistance Program) funds if the State in the future were to reduce or eliminate MAP.  This will allow students to continue their education at SXU, by providing substitute financial aid,” according to Klotzbach.

Developing the budget is a collaborative effort requiring input from many parties.

CFO Klotzbach stated “We work with the various stakeholders to develop the most accurate projections of the University’s revenues and expenses.  For example, representatives from Admissions, Financial Aid and Institutional Research, along with the President provide the assumptions and projections for undergraduate enrollment and income.”

Klotzbach continues, “A similar process involving the Deans, Provost and Graduate Admissions is followed in developing the budget for Graduate tuition revenue. New initiatives proposed through IPBC are incorporated into the budget.  Our Director of Financial Planning/Analysis (Michelle Aloia) has primary responsibility for working with budget managers to develop the most current budget forecasts.”

The development process can bring challenges for administrators.

“I think that forecasting enrollment is the most challenging. Given that SXU is heavily dependent on student tuition (over 90% of our operating revenue is generated from student tuition, fees, room and board) projecting accurate enrollment is critical.  Enrollment depends on so many different variables, making it difficult to predict how many students will enroll.  Competition from other colleges and universities has a significant influence on our enrollment from year to year,” Klotzbach explained.

Chief Financial Officer Klotzbach shared that the current unpredictably around state educational funding is forcing the school to seek stable revenue sources.

“One of the risks is the uncertainty of MAP given the political and financial situation of Illinois.  In addition, other risks are the shrinking population demographics (fewer graduating seniors) and increasing competition from other schools.” Vice President Klotzbach said.

“One of my main goals is helping all stakeholders to understand the need for SXU to continue to maintain a balanced budget during these financially challenging times,” said Klotzbach.

When asked about his short and long-term goals, Klotzbach said, “My primary goal is to help the University create a Sustainable Financial Model so as to allow it to continue to live out its Mercy Mission into the future.”

Klotzbach stressed the role of Saint Xavier University employees.

“In addition, it is important to recognize the excellence of SXU’s faculty and staff.  To this end, we have completed a faculty salary analysis and are in the beginning stages of a staff salary analysis to look at comparable positions at other schools. The goal would be to adjust salaries of those faculty and staff whose salaries are below a chosen percentile to bring more equity to our salaries,” Chief Financial Officer Klotzbach said.

Saint Xavier University is currently in the process of selling its Orland Park Campus, which is not currently occupied. The school plans on utilizing the profit from this to financially reinforce the university.   

Klotzbach shared, “Another goal is to optimize the use of our facilities and resources.  To that end, we are working to sell our vacant Orland Park Campus, as well as the apartment building at 10140 S Pulaski.  The proceeds of these sales will be used to pay off some of our bonds and bring relief to the debt SXU carries.”

Klotzbach has been welcomed to the Saint Xavier University Community since he started in late 2017. The Chief Financial Officer shared his thoughts on this community.

“I have been impressed by the fine work of the many faculty, staff and administrators I have met during my first several months here at SXU.  The University has weathered significant financial challenges in the past, but with the outstanding leadership of the Board, the clear guidance of President Joyner and the talented and committed faculty, staff and administration,” the CFO said.

“SXU is poised to continue serving our students for another 100 years,” Klotzbach concluded.

John Murawski

News Editor

About Post Author