June 6 6, 2 2014 014 1 Agend nda a Report: Status of the - - PowerPoint PPT Presentation

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June 6 6, 2 2014 014 1 Agend nda a Report: Status of the - - PowerPoint PPT Presentation

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Joi oint nt Mee Meeting ng of of the e Fin inan ance ce an and d Adv Advan ancemen cement t & Co & Comm mmun unicat ation ions s Com Commi mittees ees June 6 6, 2 2014 014 1 Agend nda a Report:

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Joi

  • int

nt Mee Meeting ng of

  • f the

e Fin inan ance ce an and d Adv Advan ancemen cement t & & Co Comm mmun unicat ation ions s Com Commi mittees ees

June 6 6, 2 2014 014

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SLIDE 2

Agend nda a

Report:

  • Status of the 2014-2016 State Budget

Colette Sheehy Action Items:

  • 2014-2015 Operating Budget:

Budget Context and Cornerstone Plan President Sullivan Overview Pat Hogan All Divisions Colette Sheehy Academic Division Pratt Fund Annual Renovation and Infrastructure Plan UVa’s College at Wise Donna Price-Henry Medical Center & Transitional Care Hospital Larry Fitzgerald

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Sta tatu tus s o

  • f t

the e 2 2014 014-2016 2016 Sta tate te B Budg dget et

Colette Sheehy Vice President for Management and Budget

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et In Intr troduct duction ion

Teresa Sullivan President

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Value ue Pro ropo positi sition

  • n
  • Key Quality & Value Rankings:

– #2 best public university, US News & World Report – #3 best value public college, Princeton Review – #2 best college value, Kiplinger’s – #1 annualized return on investment, PayScale.com

  • Commitment to Affordable Excellence:

– In-state tuition as a % of median income: 18.9% (among the lowest of all national public institutions) – Need-blind; meet 100% of need for all undergraduates – Loan caps below state and national average student indebtedness levels; lowest quartile among all national public institutions.

  • Student Performance:

– 93.3% graduation rate (highest among all national public institutions)

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Con

  • ntext

ext f for

  • r t

the 2 2014 014-2015 2015 B Budget dget

  • Implement the Strategic Plans
  • Maintain access and affordability
  • Invest in the next generation of faculty
  • Implement a new activity-based financial model linked

to strategic initiatives, with incentives for innovation and efficiency

  • Examine processes to identify efficiencies while

maintaining quality

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Pro rogress ress t this is p pas ast t y year ar, 2 2013 013 – 2014 2014

I.2 Launched Total Advising: Career Advising planning II.4 Founded Data Science Institute, philanthropic support III.6 Expanded undergraduate research III.7 Established Center for Global Inquiry and Innovation, Global internships for students V.14 Launched Organizational Excellence V.15 Strategic Philanthropy: faculty and financial aid goals support the plan

Roman numerals and numbers correspond to the strategies and initiatives of the Strategic Plan.

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Top

  • p P

Prior ioriti ities es f for

  • r n

next xt y year ar, 2 2014 014 – 2015 2015

Roman numerals and numbers correspond to the strategies and initiatives of the Strategic Plan.

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I.2 Total Advising:

  • expand advising seminars
  • career advising and internships
  • Clemons renovation planning

III.7 Global Experiences IV.9, 10, 11 Faculty Hiring:

  • search committee training
  • faculty development programs
  • teaching residents

V.12 Affordable Excellence:

  • In conjunction with BOV, considering tuition and financial

aid policy V.14 Organizational Excellence

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Ad Addi diti tional nal Prio ioritie ities s for next xt ye year ar, 201 014 4 – 2015 15

I.1 Addition of leadership in admission criteria I.3 Alumni Engagement: student networking, phone app for alumni access to content, research on alumni II.4 Plan for the next university institute II.5 Library services to support Data Science Inst. and others II.5 & III.6 Enhance spectrum of entrepreneurship activities IV.9 Department Chair leadership program V.15 Strategic philanthropy: begin planning for Bicentennial Campaign

Roman numerals and numbers correspond to the strategies and initiatives of the Strategic Plan.

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et Ov Over ervie view

Pat Hogan Executive Vice President and Chief Operating Officer

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Or Organ aniz izational ational E Excel xcelle lenc nce e P Prin incipl ciples es

  • Reallocate and align resources
  • Streamline, standardize, automate processes
  • Strategic workforce development
  • Redirect savings to strategic priorities
  • Seek high levels of quality and efficiency

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Or Organi nization ational al E Excel xcelle lenc nce Pro rogres ress s i in 2 2013 13-2014 2014

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  • Established formal OE program and governance structure
  • Completed planning for University Financial Model
  • Initiated Managerial Reporting project
  • Designed Center for Leadership Excellence
  • Initiated process mapping of research administration
  • Designed electronic grant proposal workflow and

repository

  • Analyzed strategic sourcing opportunities
  • Benchmarking six administrative areas
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Or Organ aniz izational ational E Excel xcelle lenc nce Ma Major

  • r A

Are reas as o

  • f F

Foc

  • cus, 2

2014 14-2015 2015

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Targeted Academic Division savings of $11.5 million, which represents 3.6% of the FY14 undergraduate addressable operating expenditure budget (i.e., excludes faculty salaries and research).

  • Complete transition to University Financial Model
  • Implement strategic sourcing
  • Renegotiate major procurement contracts
  • Use technology to gain efficiencies
  • Reduce unnecessary intra-unit business transactions
  • Continue strategic workforce development
  • Reduce reliance on leased space through space planning
  • Benchmark additional administrative services
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2014 2014-2015 2015 P Pre resent ents s S Signif ific ican ant t I Incr cremen emental tal Op Operat ating ing C Cos

  • st

t R Requ quiremen irements ts

(In n Milli lions

  • ns)

The University is facing significant operating cost increases in FY15 in the following areas:

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Academic Division Medical Center College at Wise TOTAL Faculty salary increase $13.93 $ 0.00 $ .60 $14.53 Staff salary increase/bonus 11.12 42.00 .65 53.77 Fringe benefits increase 19.92 19.90 .82 40.64 O&M of new buildings 1.57 3.03 .13 4.73 Total $46.54 $64.93 $2.2 $113.67

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SLIDE 15

Next xt Steps ps

15

Present

  • perating

budget to Board of Visitors for approval Update State Six Year Plan Develop multi-year financial plan alternatives Discuss multi-year financial plan with Board of Visitors

June Summer Fall

Finance Subcommittee

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et All l D Div ivis isions ions

Colette Sheehy Vice President for Management & Budget

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BOV OV A Act ction ions s R Refle lected cted i in t the B Budget dget

  • Reviewed budget assumptions:

– Endowment distribution – Projected AccessUVa costs – Estimate of sponsored research activity – Compensation adjustments

  • Received reports on budget actions by the Governor

and General Assembly

  • Approved tuition, fees, housing, and dining rates at

February and April meetings

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ALL D DIV IVISION ISIONS 2014 2014-2015 2015 O OPERATING TING E EXPEN XPENDIT DITUR URE E BUDGE GET

(In In Millions) ions)

Academic Division $1,466.9 +0.3% Medical Center $1,280.7 +7.9% UVa-Wise $ 41.5 +4.3% Total $2,789.1 + 3.7%

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Change from Projected 2013-14 Academic Division 52.6% Medical Center 45.9% Wise 1.5%

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ALL D DIV IVISION ISIONS His istor

  • ry

y o

  • f E

Emplo ployment nt L Levels vels

(Budg dgete ted d FTE)

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8,505 8,725 8,686 8,756 8,636 8,577 8,067 8,164 6,347 6,376 6,214 6,393 6,688 6,898 7,198 7,495 291 302 284 292 306 315 324 330

  • 5,000

10,000 15,000 20,000 2008 2009 2010 2011 2012 2013 2014 2015 Academic Med Center Wise

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ALL D DIV IVISIONS ISIONS Where re t the M Mon

  • ney C

Com

  • mes

es F Fro rom

Projected 2013-14 ($2.69 Billion) Proposed 2014-15 ($2.79 Billion)

20 18.7% 5.8% 43.8% 10.5% 5.7% 4.5% 2.0% 9.0% 19.2% 5.9% 45.2% 10.0% 5.6% 4.5% 1.1% 8.5% Tuition & Fees State Appropriations Patient Revenues Sponsored Programs Endowment Distribution Expendable Gifts Other Sales & Services, Investment Income

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ALL D DIV IVISIONS ISIONS Where re t the M Mon

  • ney G

Goe

  • es

Projected 2013-14 ($2.69 Billion) Proposed 2014-15 ($2.79 Billion)

21 14.1% 10.6% 5.5% 1.7% 3.6% 4.0% 5.2% 6.4% 2.1% 0.8% 46.0% Instruction Research & Public Serv. Academic Support Student Services General Administration O&M of Physical Plant Financial Aid Auxiliaries Internal Debt Service Transfers Patient Care 13.8% 11.6% 5.6% 1.7% 3.7% 4.2% 5.4% 6.5% 2.3% 1.0% 44.2%

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et Academic demic D Div ivis ision ion

Colette Sheehy Vice President for Management & Budget

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ACADE DEMIC MIC D DIV IVISION ISION 2014 2014-2015 2015 S Sou

  • urces:

ces: $ $1.47 1.47 B Bil illion lion

23 36.4% 10.3% 19.3% 10.7% 8.7% 2.1% 12.5% Tuition & Fees State Appropriations Sponsored Programs Endowment Distribution Expendable Gifts Other Sales & Services, Investment Income

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ACADE DEMIC MIC D DIV IVISION ISION 2014 2014-2015 2015 P Pro rojec jection tions In Incr crement mental al E Exp xpen enditures ditures

(In In Millions

  • ns)

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Funded from Undergraduate Tuition and State General Funds Funded from Other University Sources Total Academic Division Faculty salary increase $5.59 $8.34 $13.93 Staff salary increase/bonus 5.62 5.50 11.12 Fringe benefits increase 8.89 11.03 19.92 O&M of new buildings .45 1.12 1.57 Total $20.55 $25.99 $46.54

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ACADE ADEMIC MIC DIVIS IVISIO ION N – Under dergr graduate duate Schools

  • ls

2014 2014-20 2015 15 Investments vestments in in the he Strategic tegic Pla lan

(In n Mil illi lions)

  • ns)

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Reallocations/ Reserves Tuition/ State Approp. Strategic Investment Fund Philanthropy Total Academic advising $ $0.40 $ $ $0.40 Career development 1.24 1.24 Global initiatives 0.75 0.75 Faculty hiring 10.72 0.69 11.41 Library resources/facilities 0.90 0.80 1.70 Research/Innovation 3.00 2.08 0.50 5.58 Managerial reporting system 2.71 2.71 Supporting Organizational Excellence 0.86 0.86 Strategic Communication and Branding 0.93 0.93 1.86 Total $15.55 $5.16 $5.30 $0.50 $26.51

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ACADE DEMIC MIC D DIV IVISION ISION 2014 2014-2015 2015 O Ope perating ating E Exp xpend enditure iture B Budget dget $1.47 .47 B Billion lion

By Category By Activity

26 GTA/GRA – Graduate Teaching Assistant/Graduate Research Assistant Faculty Comp. 29.3% Staff Comp. 24.6% Wages 3.8% GTA/GRA 1.6% Other 40.7% 26.0% 20.1% 10.2% 3.1% 6.6% 7.5% 9.5% 11.4% 4.0% 1.6% Instruction Research & Public Serv. Academic Support Student Services General Administration O&M of Physical Plant Financial Aid Auxiliaries Internal Debt Service Transfers

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et Pratt tt F Fund nd

Colette Sheehy Vice President for Management & Budget

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2014 2014-2015 2015 PRATT T FUND ND ALLO LOCATION TION Schoo

  • ol of
  • f Me

Medic dicine ne

(In Thou

  • usa

sand nds) Research $3,833 Fellowships 1,220 Total $ 5,053

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The Pratt Fund may be used for research and scholarships in the School of Medicine.

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2014 2014-2015 2015 P PRATT T F FUND ND A ALLO LOCATI TION Arts s & & S Sci ciences ces

(In In Thou

  • usand

sands) Fellowships $ 1,476 Faculty Salaries 1,211 Equipment 893 Total $ 3,580

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The Pratt Fund may be used for faculty salaries, scholarships, and equipment in Departments of Biology, Mathematics, Physics, and Chemistry.

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201 014-2015 2015 O Oper eratin ating g B Budg dget et Ann Annual al R Ren enova vatio tion n a and nd In Infrast astructure ucture P Pro roject jects s P Pla lan

Colette Sheehy Vice President for Management & Budget

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An Annual ual R Renovat

  • vation

ion a and d In Infrastr structur cture e P Pro rojec jects ts P Plan n ( (AR ARIP) IP)

  • Annually, Board of Visitors considers a master plan of

renovation and infrastructure projects: – Between $2 million and $5 million – Funded with 100% cash (no debt)

  • Allows a shorter time-frame to expedite these types of

projects

  • 2014-2015 Academic Division ARIP = $10.7 to $12.8

million

  • 2014-2015 Medical Center ARIP = $2.7 to $3.3 million

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et College lege a at t Wis ise

Donna Price-Henry Chancellor

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COL OLLEGE EGE A AT T W WIS ISE E Pro rofil ile

  • 1,636 Fall 2013 FTE Students
  • 136 Faculty
  • 194 Support Staff

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COL OLLEGE EGE AT T WIS ISE Stude dent t Enrol

  • llme

lment nt Levels els

1661 1651 1707 1636 1652 1990 2067 2420 2291 2322 73 35 17 17 250 500 750 1000 1250 1500 1750 2000 2250 2500 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014 (proj.)

Full-time & Total Enrollment Provisionally Admitted Students

FTE Headcount Provisional 34

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COL OLLEGE EGE AT T WIS ISE Full-tim time e Pos

  • sitio

ition Level vels

145 141 139 136 136 94 92 96 96 98 148 165 176 188 194 50 100 150 200 250 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Faculty and Staff

Total Faculty - Including T&R T&R Only Faculty Total Staff 35

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COL OLLEGE EGE A AT T W WIS ISE E 2014 2014-2015 2015 E Exp xpendi enditure ture B Budget: dget: $ $41.5 1.5 million ion

By Source By Use

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26.0% 38.6% 2.0% 8.1% 1.7% 23.6% Tuition & Fees State Appropriations Sponsored Programs Endowment Distribution Expendable Gifts Sales & Services and Other 27.4% 2.5% 10.0% 4.0% 9.3% 4.0% 13.7% 29.1% Instruction Research & Public Serv. Academic Support Student Services General Administration O&M of Physical Plant Financial Aid Auxiliaries

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COL OLLEGE EGE A AT T W WIS ISE E Strat ategi egic c P Prior ioriti ities es

  • Support the early intervention and

identification of first-time at-risk students through the Summer Bridge Program

  • STEM Early College Academy Pilot Program
  • Support teaching and research faculty merit

increase to recruit and retain high-quality faculty

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et Me Medi dical al C Cen ente ter

Larry Fitzgerald Associate Vice President for Business Development and Finance

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UVA M MEDIC ICAL AL C CENT ENTER ER Fin inan anci cial al O Obj bject ectives ives FY FY 14 – FY FY 20 20

  • Support academic mission
  • Continuously improve quality
  • Execute Strategic Plan

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UVA M MED EDIC ICAL AL C CENTER ENTER Budg dget et C Challe leng nges: es: F FY15 a and d b beyon

  • nd
  • Medicaid and Indigent Care funding
  • Impact of Federal Healthcare Reform
  • Competitive environment
  • Medicare payments
  • Centers of Excellence and Outreach
  • Utilization patterns
  • Accountable Care Organizations and Clinically

Integrated Networks

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UVA M MEDIC ICAL AL C CENT ENTER ER FY FY 15 15 O Ope peratin ating g B Budget dget

Note: The UVA Medical Center includes UVA Outpatient Surgery Center, Imaging Center, Free Standing Dialysis Units, Community Medicine, the Transitional Care Hospital, Outreach, Accountable Care Organization, Strategic Investment Pool and UVA HOPE Cancer Care.

Actual Projected Budget 2013 2014 2015 Discharges – Medical Center 28,859 28,120 28,637 Discharges – Transitional Care Hospital 305 303 426 Outpatient Visits & ER 824,941 848,840 911,731 Average Length of Stay Medical Center 5.62 5.74 5.40 ALOS – Transitional Care Hospital 26.43 31.00 28.99 Net Operating Revenue ($ millions) $1,214.4 $1,254.2 $1,339.9 Operating Expenses 1,135.1 1,187.3 1,280.7 Operating Income $ 79.3 $ 66.9 $ 59.2 Operating Income Margin % 6.5% 5.3% 4.4% Non-Operating Gains $ 23.3 $ 48.3 $ 37.4 Net Income $ 102.6 $ 115.2 $ 96.7 Net Income Margin % 8.3% 8.8% 7.0%

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2014 014-2015 2015 O Oper erat ating ing B Budg dget et Trans ansitio itional nal C Care re H Hospit pital al

Larry Fitzgerald Associate Vice President for Business Development and Finance

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UVA TRANSITIO ANSITIONAL AL C CARE RE H HOSP SPIT ITAL AL FY FY 2015 5 O Ope peratin ating g B Budget dget

Actual 2013 Projected 2014 Budget 2015

Discharges 305 309 426 Average Length of Stay 26 31 29 Average Daily Census 23 26 34 Net Operating Revenue $16,302,959 $18,146,270 $21,998,034 Operating Expenses 16,891,585 17,737,032 20,893,307 Operating Income (588,626) 409,238 1,104,727 Operating Margin (3.6%) 2.3% 5.0%

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Budg dget et R Resolu

  • lution

tions s R Requ quir iring ing A Appro pproval al

  • 2014-2015 Operating Budget and Annual Renovation and

Infrastructure Plan for the Academic Division

  • Pratt Fund Distribution for 2014-2015
  • 2014-2015 Operating Budget for the University of Virginia’s

College at Wise

  • 2014-2015 Operating and Capital Budgets and Annual

Renovation and Infrastructure Plan for the University of Virginia Medical Center

  • 2014-2015 Operating and Capital Budgets for the University
  • f Virginia Transitional Care Hospital

44