Februa uary y 20, 2014 4 ACTION ITEMS A. Rescission of Milton - - PowerPoint PPT Presentation

Meeting ng of the Boar ard d of Visito tors Finan nance ce Committee ittee Februa uary y 20, 2014 4

ACTION ITEMS

• A. Rescission of Milton Airport as Surplus Property
• B. School of Medicine Harrison Distinguished Teaching

Professorships Quasi-Endowment

• C. Capital Project Approval: Wilson Hall Renewal
• D. Delegation of Authority to Declare Official Intent to Issue

Bonds to Reimburse Expenditures

ACTION ITEMS

• E. Faculty, Staff, and Student Housing Rates, 2014-2015
• F. Dining Services Rates, 2014-2015
• G. 2014-2015 Tuition and Required Fees for Graduate,

Professional, and Special Programs

• H. Budget Amendments Transmitted to the General

Assembly

PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

RESCISSION OF

OF MILTON

AIRPORT AS

AS SURPLUS

PROPERTY

Milton Airport

• 172 acre site located six miles SE of Charlottesville
• Current: UVa Police outdoor firing range, ecoMod,

Engineering School, Department of Defense

• Additional Use: indoor joint firearms training facility

(partnership with the City of Charlottesville and Albemarle County)

PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

SCHOOL OF

OF MEDICINE

HARRISON DISTINGUISHED TEACHING PROFESSORSHIPS QUASI-ENDOWMENT

School of Medicine Harrison Distinguished Teaching Professorships Quasi-Endowment

• Create Harrison Distinguished Teaching Professorships Quasi-

Endowment

• Capitalize unexpended distribution in the new quasi-endowment
• Annual distribution will be used to support faculty appointed to

the Harrison teaching professorships.

CAPITAL PROJECT APPROVAL: WILSON HALL RENEWAL

C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T & B U D G E T

Project Approval: Wilson Hall

• Interior renewal;

renovation of 1st and 2nd floors, new accessible entrance

• $4.65 million total cost
• $3.00 million - College

gifts and available cash

• $1.65 million -

maintenance reserves

PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

DELEGATION OF

OF AUTHORITY TO TO DECLARE OFFICIAL

INTENT TO

TO ISSUE BONDS TO TO

REIMBURSE EXPENDITURES

• Authorizes EVP&COO and Finance Committee Chair, acting

together, to declare official intent to issue bonds

• Does not alter current Board policies whereby the Board approves:
• Capital projects
• Expenditures for capital projects
• Issuance of debt

Delegation of Authority to Declare Official Intent to Issue Bonds to Reimburse Expenditures

R I C H K O VAT C H A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S

FACULTY, STAFF, , AND STUDENT HOUSING RATES, , 2014 2014-2015 2015

Faculty and Staff Housing Rates, , 2014-15 15

• Rents reflect market rate
• 87 housing units
• Average increase = 2.7%

Student Housing Rates, , 2014-15 15

Academic Division College at Wise Number of beds 6,680 725 Occupancy rate (fall 2013) 98% 82% Average increase $204 (3.9%) $192 (3.2%) Average double room charge (nine-month lease) $5,492 $6,228

UVa Student Housing Rates

Rate Increase Breakdown - $204 (3.9%)

Salaries & Fringe Benefits $19 (9%) Utilities & Trash $36 (17%) Other Operating Expenses $56 (28%) Renewal & Replacement $93 (46%)

UVa Student Housing Rates

Average Double Room Rate Breakdown - $5,492

Salaries & Fringe Benefits $320 (6%) Utilities & Trash $711 (13%) Other Operating Expenses $1,674 (31%) Transfers to Reserves $1,338 (24%) Debt Expense $1,449 (26%)

UVa Student Housing Rates

VA Public, Peer & Selected Other Institutions Double Room Rate

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000

UVA = $5,288

Average "Peer" & Selected Others = $7,204 Average VA Public Schools = $5,283 Sources: SCHEV 2013-2014 Public Institutions survey & Business Operations web-based survey

UVa-Wise Student Housing Rates

VA Public, Peer & Selected Other Institutions Double Room Rate

Sources: SCHEV 2013-2014 Public Institutions survey & Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

UVa-Wise = $6,036

• - - - Average "Peer" & Selected Others = $4,835

.... Average VA Public Schools = $5,283

R I C H K O VAT C H A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S

DINING SERVICES RATES, , 2014 2014-2015 2015

Dining Service Rates

Academic Division College at Wise Average increase 4.0% 4.0% Meal plans rate range $200 - $4,880 $189 - $4,322

UVa Dining Meal Plan Rates

Rate Increase Breakdown - $180 (4%)

Food $38 (21%) Personal Services $55 (31%) Other Operating Expenses $57 (31%) Commission & Fees, $30 (17%)

Other operating expenses include amortization, inflation & utilities, new program support

UVa Dining Meal Plan Rates

All Access 7 Meal Plan Rate Breakdown - $4,560

Food $1,160 (25%) Personal Services $1,131 (25%) Utilities $325 (7%) Other Operating Expenses $1,121 (25%) Commission & Fees $823 (18%)

Other operating expenses include amortization, inflation & utilities, new program support

UVa Dining Meal Plan Rates

VA Public, Peer & Selected Other Institutions Full Meal Plan Rate

Source: Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

UVA = $4,580

Average "Peer" & Selected Others = $5,002 Average VA Public Schools = $4,187

UVa-Wise Dining Meal Plan Rates

VA Public, Peer & Selected Other Institutions Full Meal Plan Rate

Source: Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

UVA-Wise = $4,156

Average "Peer" & Selected Others = $3,890 Average VA Public Schools = $4,187

2014 2014-2015 T TUITION AND REQUIRED FEES FOR GRADUA

UATE, PROFESSIONAL,

,

AND SPECIAL PROGRAMS

C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T & B U D G E T

2014 2014-15 15 Gr Grad adua uate te an and d Profe fessio siona nal l Tui uiti tion n an and F d Fees Acad ademi mic Divi visio ion

• This meeting, the Board will consider tuition and fees for:

– Ph.D. and Master’s programs – McIntire – Darden, Law, and Medicine – Special programs beginning in May and June – E&G and auxiliary required fees – Graduate application fees

• In April, the Board will consider undergraduate tuition for the University and the

College at Wise.

• Proposed rates reflect cost of graduate education and the market for

professional master’s degrees.

• Proposed tuition rates:
• GSAS and Biomedical Sciences: increases between 2.4% and 2.7%
• M.S. in Statistics (Data Science): $24,514 for Virginians, $39,196 for non-Virginians
• Batten’s Master of Public Policy: $18,504 for Virginians, $33,158 for non-Virginians
• Nursing’s Clinical Nurse Leader: $21,654 for Virginians, $35,756 for non-Virginians
• Graduate programs in SEAS and other graduate schools: increases between 1.9% and

3.1% to address unavoidable costs

Academic Division 2014 2014 - 15 Graduate Tuition Proposals

Academic Division 2014 2014 - 15 15 Graduate Tuition Proposals

Programs that begin academic year in May or June:

• SEAS -- no change in tuition for the Accelerated Master’s

Program in Systems Engineering ($38,250 for all students)

• SCPS -- increases between 3.2% and 3.9% in the post-

baccalaureate pre-medical certificate ($26,815 for Virginians, $31,966 for non-Virginians)

McIntire Graduate Programs 2014 2014 - 15 Tuition and Fees Proposal

Program Percent Increase M.S. in Accounting 1.2% M.S. in Commerce 2.5%-2.6% M.S. in MIT 3.1%

Reduce full-time MBA program differential between in-state and

• ut-of-state from $5,000 to $3,000 beginning with entering class

Darden 2014 2014 - 15 Tuition and Fees Proposal

Program Percent Increase Full-time MBA Program (current) 3.7%-4.0% Full-time MBA Program (entering) 3.7%-8.0% MBA for Executives (entering class) 3.9% Global MBA for Executives (entering class) 3.6% PhD Students 2.4%-2.7%

2013 2013 - 14 Tuition & Fees Comparison (Full-time MBA) - Darden Peers

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 * Out-of-state tuition and fees are shown for the public institutions.

Average = $57,178 UVA=$55,900

Reduce differential between in-state and out-of-state from $5,000 to $3,000 beginning with entering class

School of Law 2014 2014 - 15 Tuition and Fees Proposal

Program Percent Increase J.D. 1L and L.L.M. Program 3.6%-8.1% J.D. 2L and 3L 3.6%-4.0% Full-time, Research-Only 7.2%-21.3%

2013 2013 - 14 14 Tui uiti tion & Fe n & Fees Co Comp mpar ariso son n - Law aw P Peers

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 * Out-of-state tuition and fees shown for public institutions in the peer group.

Average = $53,954

UVA=$52,900

School of Medicine 2014 - 15 Tuition and Fees Proposal

Full-Time Students: Tuition and Required Fees 2013-14 Amount of Increase Percent of Increase Proposed 2014-15 Virginians $44,826 $708 1.6% $45,534 Non-Virginians $55,288 $854 1.5% $56,142

2013 2013 – 14 Tuition & Fees Comparison Medicine Peers

UVA = $59,422

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 * Out-of-state tuition and fees shown for the public institutions. Fees include health insurance. UVA fees include Clinical Services Fees.

Average = $52,082

Academic Division

2014-15 Proposal for Comprehensive Fees

Regular Session Full Time $ Change % Change Proposed 2014-15 $ Change % Change Proposed 2014-15 E&G Fees $4 0.9% $448 $4 0.4% $1,130 Auxiliary Fees $68 3.5% $2,016 $68 3.5% $2,016 Comprehensive Fees $72 3.0% $2,464 $72 2.3% $3,146 Student Activity Fee 0.0% $50 0.0% $50

Virginian Non-Virginian

Auxiliary Fees 2014 2014-15 15 Regular Session

Includes: Athletics, Student Health, Intramurals/Rec, Newcomb Hall, Bus Service, Student Programming, Data Center, Microsoft Licensing, Safe Ride, WTJU, Auxiliary Reserves

Approved Auxiliary Fees, 2013-14 $1,948 Proposed Changes: Recreational Facilities Student Health University Transit WTJU Auxiliary Reserves 63 16 5 1 (17) Proposed Auxiliary Fee, 2014-15 $2,016 Increase over 2013-14 3.5%

Graduate Application Fees 2014 2014-15 15 Tuition and Fees Proposal

Graduate Application Fee (Virginians and Non-Virginians): 2013-14 Amount of Increase Percent of Increase Proposed 2014-15 Batten, Engineering $60 $0 0.0% $60 Architecture, Education, Nursing $60 $15 25.0% $75 GSAS $60 $25 41,7% $85

BUDGET AMENDMENTS TRANSMITTED TO

TO THE

GENERAL ASSEMBLY

C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T & B U D G E T

General Assembly Budget Amendments

Academic Division

FY2014-15 FY2015-16 Focused Ultrasound Language Language Thornton Hall “Clean Room” Renovation $2.4 M GF Gilmer Hall/Chemistry Building Detailed Planning $6 M NGF Virginia Foundation for the Humanities $150,000 GF $150,000 GF

General Assembly Budget Amendments

Medical Center

FY2014-15 FY2015-16 State Share of Supplemental Payments for Private Hospital Partners Language Language

College at Wise

FY2014-15 FY2015-16 Wyllie Renovation and Conversion - Planning $250,000 GF

REPORTS

• Legislative Budget Actions for 2014-2016
• Endowment Report – Market Value and Performance as of

December 31, 2013

LEGISLATIVE BUDGET ACTIONS FOR 2014 2014-2016 2016

C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T & B U D G E T

Legislative Budget Actions

• House and Senate vote on respective budgets today
• Key elements of House and Senate amendments
• Conference committee to reconcile differences by March 8

L AR RY K O C H AR D C H I E F E X E C U T I V E O F F I C E R O F U V I M C O

ENDOWMENT REPORT: MARKET VALUE AND PERFORMANCE AS

AS OF OF

DECEMBER 31, 2013

Outline

• Governance and Staffing
• Performance Review
• Asset Allocation

Governance and Staffing

Staff

• 34 members led by Larry Kochard as CEO/CIO
• Investment team comprised of CEO/CIO, 3 Managing Directors, 1 Director, 5 Associates,

and 3 Analysts

• Average of 20 years of investment experience among senior staff

Board of Directors

• 12 members, three appointed by the BOV, and one by the President
• David MacFarlane was appointed as Board Chairman effective January 1, 2014
• Meryl Witmer was appointed on January 1, 2014
• Meets 4 times a year

Performance Review

As of December 31, 2013 $ Millions % FYTD CYTD 3 YR 5 YR 10 YR 20 YR Long Term Pool 6,394 100.0 8.5 16.6 12.6 14.5 10.2 11.9 Policy Benchmark 100.0 9.5 13.4 8.3 12.5 7.2 7.4 Equity Public 1,652 25.8 15.0 25.0 17.1 26.4 14.8 12.3 Long / Short 1,545 24.2 9.2 21.7 12.8 11.1 10.0 8.9 Buyout 832 13.0 3.6 10.7 13.8 17.6 12.6

• Venture Capital

271 4.2 26.5 42.3 30.2 23.1 9.5 20.2 Total Equity 4,300 67.2 11.2 21.6 15.5 17.5 11.8 14.1 MSCI All Country World Equity 60.0 16.0 23.4 10.3 15.5 7.7 7.4 Real Assets Real Estate 510 8.0 4.6 12.4 9.8 (7.3) (0.1) 3.2 Resources 284 4.4 2.8 3.8 13.1 19.9 22.5

• Total Real Assets

794 12.4 3.9 8.9 12.3 8.4 12.2 11.0 MSCI Real Estate 10.0 (1.1) 0.8 8.2 15.3 8.0 8.1 Fixed Income, Cash & MAC Marketable Alternatives and Credit 676 10.6 6.7 16.3 9.7 14.8 7.1 7.5 Government Bonds 444 6.9 0.2 0.2 0.2 2.5 4.7 6.4 Cash & Currency 180 2.8 (0.0) (0.2) (0.0) 0.0

• Total Fixed Income, Cash & MAC

1,300 20.3 3.5 7.5 4.7 8.9 5.7 6.9 Barclays Aggregate Bond 30.0 0.7 (1.1) 3.4 4.3 4.5 5.7 Portfolio Overlays (0) (0.0) (0.1)

• Market Value

Time-Weighted Annualized

Performance Review

Annualized Returns of the Long Term Pool Versus Benchmarks and Peers

Periods Ending June 30, 2013 1 YR 3 YR 5 YR 10 YR 20 YR Long Term Pool 13.4 14.0 6.2 10.2 11.8 Policy Portfolio Benchmark 11.3 10.7 4.4 7.7 7.2 Comparative Industry Data TUCS All Master Trusts Top Quartile (1) 13.3 12.0 6.0 7.6 8.6 TUCS All Master Trusts Median 11.3 10.6 5.1 6.9 7.8 TUCS All Master Trusts Bottom Quartile 8.0 8.4 4.0 6.1 7.3 Cambridge $2+ Billion Top Quartile (2) 12.5 12.0 4.5 10.1 11.5 Cambridge $2+ Billion Median 11.7 11.0 3.9 8.6 9.6 Cambridge $2+ Billion Bottom Quartile 11.2 10.4 3.3 8.0 8.7

(1)

Trust Universe Comparison Service (TUCS) reports performance of over 600 institutions representing $3.5 trillion in assets under management

(2)

Represents data for 31 colleges and universities with more than $2 billion in assets as of June 30, 2013

Asset Allocation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

As of December 31, 2013

Public Equity Long/Short Equity Private Equity Real Estate Resources Marketable Alternatives & Credit Bonds & Cash

25.8% 24.2% 17.2% 8.0% 4.4% 10.6% 25.8% 24.2% 17.2% 8.0% 4.4% 10.6% 9.8% 30% Fixed

Income

10% Real Assets 60% Equity Policy Portfolio