Ensuring the Financial Health and Stability of Frontier Nursing University

Being responsible for the finances of a university is a major responsibility, particularly one that just purchased, renovated, and built a new campus. It is a multifaceted task that requires a team dedicated to the financial health and stability of the university. Leading those efforts for Frontier Nursing University is Chief Financial Officer Emily Fangue, CPA, MBA.

Fangue joined FNU in the fall of 2022, replacing former CFO Michael Steinmetz, who retired in August 2022 after nearly 13 years with the university. Fangue is a certified public accountant with a degree in accounting from the University of Kentucky and a master’s in business administration from Morehead State University.

With support from FNU Controller Joseph Duruttya, the Board of Directors FNU Finance and Audit Committee, and the Foundation Board of Directors, Fangue hit the ground running, quickly picking up where Steinmetz left off.

“FNU has a sound financial base and prepares its annual budgets and administers its financial operations to be self-sustaining and ensure achievement of student learning outcomes and program outcomes,” Fangue said. “As the demand for its programs has increased over the past several years, FNU has been able to fund an increasing percentage of its operating expenses from sources such as tuition and fees. The sustainability of operations is also supported by strong operating margins and financial reserves. Sources of financial support include tuition, fees, grants, donations, bequests, gift shop sales, and earnings on investments.”

Fangue meets quarterly with the Board of Directors Finance and Audit Committee and the Foundation Board of Directors. The Finance and Audit Committee reviews and recommends to the board the proposed budget for the University, quarterly performance, long-range financial planning documents, and proposed tuition/fee changes.

The Foundation Board of Directors manages the affairs of Frontier Nursing Service, Incorporated, and oversees the investments and related policies of the University Endowment.

“The support, insight, and expertise of our volunteers and advisors are essential to ensure that we are making the right decisions for the present and future of Frontier,” Fangue said.

That decision-making process comes with an awareness that what might be the right course of action today may need to change tomorrow. Unforeseen events, such as the pandemic, have major implications on national and global markets.

“The university experienced some temporary decline in enrollment as a result of the pandemic,” Fangue said. “The pay rates for travel nurses increased significantly during the pandemic due to the great need for providers. This negatively impacted the number of students enrolling. As the rates for travel nurses began to decline, our enrollment returned to normal levels.”

With the campus now open and the impact of the pandemic beginning to lessen, FNU has returned to a state of relative normalcy regarding its financial structure, goals, and planning.

“The university ensures that each budget cycle sets targets for 4-6% of net income to revenue, which is a best practice established by the Department of Education,” Fangue said. “The excess funds provide support for unexpected expenses that may arise and any temporary shortfalls in enrollment. Any excess funds are invested in a well-balanced portfolio. The investments not only provide support for long-term strategies but they also act as a safety net for the university. We are sometimes asked why, as a non-profit, we do not spend all of the revenue we make. It is the aforementioned reasons that safeguard us for the future and the unknown.”