UNIVERSITY OF VIRGINIA
BOARD OF VISITORS
MEETING OF THE
FINANCE COMMITTEE
September 20, 2013
FINANCE COMMITTEE
September 20, 2013
8:00 – 9:00 a.m.
Board Room, The Rotunda
Committee Members:
Victoria D. Harker, Chair
John A. Griffin, Vice Chair
Frank B. Atkinson
Allison Cryor DiNardo
Marvin W. Gilliam Jr.
Stephen P. Long, M.D.
Edward D. Miller, M.D.
Linwood H. Rose
George Keith Martin, Ex-officio
Daniel M. Meyers, Consulting Member
Martin N. Davidson, Faculty
Consulting Member
AGENDA
PAGE
I.
II.
ACTION ITEMS (Mr. Hogan)
A.
Operating Budget Requests to the Governor for the
2014-2016 Biennial Budget for the Academic Division,
Medical Center, and the University’s College at
Wise (Mr. Hogan to introduce Colette
Sheehy; Ms. Sheehy to report)
B.
2014-20 State-Required Six-Year Plan for the
Academic Division (Ms. Sheehy to report)
C.
Capital Project Financing Plan: Rugby Road
Office Building (Ms. Sheehy to report)
D.
Authorization of and Intent to Issue Tax-Exempt
Debt (Mr. Hogan)
REPORTS BY THE EXECUTIVE VICE PRESIDENT AND CHIEF
OPERATING OFFICER (Mr. Hogan)
A.
June 30, 2013 Academic Division Financial Report
(Mr. Hogan to introduce Ms. Melody Bianchetto; Ms.
Bianchetto to report)
B.
Endowment Report – Market Value and Performance as
of June 30, 2013 (Mr. Hogan to introduce Mr.
Lawrence Kochard; Mr. Kochard to report)
C.
Annual Report on the UVa Employee Health Plan (Mr.
Hogan to introduce Ms. Susan Carkeek; Ms. Carkeek
to report)
D.
Darden Student Loan Program (Mr. Hogan to introduce
Dean Robert Bruner; Dean Bruner to report)
E.
Executive Vice President’s Remarks
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7
9
11
15
24
41
46
47
PAGE
F.
III.
Miscellaneous Financial Reports
1. Update on Current Fundraising Initiatives
2. Endowment/Long-Term Investments for UVa and
Related Foundations
3. Uses of Funds from Pratt Estate
4. Quasi-Endowment Actions
5. AAU and SCHEV Salary and Compensation for FullTime Instructional Faculty and University Staff
6. Sponsored Programs Restricted Grant and
Contract Activity
ATTACHMENT
A. Six-Year Plan for the Academic Division
B. Summary of Capital Projects Included in Intent to
Issue Tax-Exempt Debt Authorization
48
49
50
51
52
58
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
I.A. Operating Budget Requests to the
Governor for the 2014-2016 Biennial Budget
for the Academic Division, Medical Center,
and the University’s College at Wise
BACKGROUND: Every two years, the University submits its
biennial budget requests to the Department of Planning and
Budget for review by the Governor for inclusion in his budget
proposal, which will be presented to the General Assembly in
December 2013. The 2014-2024 Capital Plan, approved by the
Board of Visitors on April 18, 2013, was submitted to the
Commonwealth in May 2013.
DISCUSSION: Budget amendments for the 2014-2016 biennium will
be submitted to the Governor by September 16, 2013. Proposed
amendments are drawn from the University’s six-year plan
developed pursuant to the Higher Education Opportunity Act
(HEOA) of 2011. Issues that cut across higher education – such
as faculty and staff salary increases, base budget adequacy, and
undergraduate financial aid – will be addressed by the state for
all institutions.
Depending on the outcome of the Governor’s budget process,
the University may want to submit the following amendments, and
possibly others, to the legislative session in January 2014.
Any requests not included on this list that might be submitted
to the General Assembly will be communicated to the Board of
Visitors in advance of the due date. Formal approval by the
Board of Visitors will be sought at its February 2014 meeting.
Operating amendments for the Academic Division (Agency 207)
total $16.5 million in general funds (GF) in year one and $25.2
million GF in year two. Operating amendments for the University
of Virginia Medical Center (Agency 209) total $10.4 million GF
in year one and $10.9 million GF in year two. Operating
amendments for the University of Virginia’s College at Wise
(Agency 246) total $629,000 GF in year one and $1.2 million GF
in year two.
1
AGENCY 207 – Academic Division:
Fund Enrollment Growth – ($427,000 GF in year one and $2,076,000
GF in year two) – The University requests general fund support,
at $8,415 per student from the October 2012 calculation of the
base budget adequacy formula, to educate 179 additional Virginia
undergraduates in fall 2014 and 196 additional Virginia
undergraduates in fall 2015. The request for general funds in
year one takes into account the funds the University received
from the Commonwealth in previous years to support enrollment
growth that did not materialize. Total enrollment growth
targets were met, however, the mix of in-state and out-of-state
students in the entering classes did not match the targets. The
University remains committed to meeting the in-state enrollment
growth target approved by the Board of Visitors in 2011 and will
make the necessary adjustments going forward.
Fund Start-up Packages for Faculty – ($7.0 million GF in year
one and $14.0 million GF in year two) – The University requests
the establishment of a multi-year fund for start-up packages
necessary to recruit new faculty, particularly in the science,
technology, engineering, and math (STEM) disciplines, to support
expected enrollment growth and anticipated retirements over the
next several years. The fund will provide critical resources
for laboratory renovations, equipment, summer wages for ninemonth faculty, and other support for 70 new faculty in these
fields in the 2014-16 biennium. The start-up packages will
average $650,000 per faculty to be paid out over three years as
the new faculty establish their research programs at the
University. The start-up packages will not include base salary
support or signing bonuses for new faculty.
Fund Medical Translational Research – ($4.0 million GF in year
one and year two) – In 2013-14, UVa received incremental funds
of $1 million from the Commonwealth to support cancer research
and to enhance access to care and breakthrough clinical trials,
bringing the Commonwealth’s direct appropriation to $3.4
million. Assuming the continuation of the current
appropriation, UVa requests additional state support of $4.0
million in 2014-15 and 2015-16 to leverage these assets to
accelerate research and to improve the health of its patients
and the Commonwealth’s economy. Additional state support will
expand medical translational research so that laboratory
discoveries are converted into new methods to diagnose and treat
illness and augment cancer outreach and prevention activities.
2
Fund Economic Development Accelerator – ($4.0 million GF in year
one and year two) – In 2013, UVa submitted a proposal to create
the UVa Economic Development Accelerator (UVEDA) with $25
million of state support over five years to be matched with
private contributions. The General Assembly appropriated $1
million to establish the UVEDA in 2013-14. Beginning in 201415, UVa requests an additional $4 million general funds per year
for four years and $3 million in a fifth year, or $19 million
incremental funding, bringing the Commonwealth’s total
investment to $25 million over six years. The University will
match with private contributions the Commonwealth’s commitment.
The UVEDA is a public-private partnership designed to facilitate
knowledge transfer and business development around university
research and innovation (including a proof-of-concept fund).
Fund Operations and Maintenance Costs for New Facilities –
($871,500 GF in year one and $903,600 GF in year two) – The
University requests ongoing support for increased operations and
maintenance costs related to the following core educational and
general capital projects that are scheduled to be fully online
in 2014-16 - Drama Education Addition, Facilities Management
Landscape Shop, Acquisition of 560 Ray C. Hunt Drive, Facilities
Management Shop Building, 2023 Ivy Road (Cary’s Camera), Lacy
Hall, and New Cabell Hall (renovation of existing space with new
systems having incremental value).
Fund Health Insurance Premiums – ($226,600 GF in year one and
year two) – The Commonwealth provides funding to cover the state
share of the increases in employer premiums for state employees
participating in the University's health care plan. The
University’s funding request is based on health plan rates that
will be effective on January 1, 2014.
Add Appropriation Act Language to Administer Salary Increases
for University Staff (Language Only) – The University proposes
language that authorizes it to administer salary increases for
employees not subject to the Virginia Personnel Act (i.e.,
University Staff) on the basis of merit rather than across-theboard. In 2013, the General Assembly passed, and the Governor
approved, a similar authorization for all higher education
institutions with employees not subject to the Virginia
Personnel Act for the salary increases effective July 2013.
Add Appropriation Act Language to Administer Salary Increases
for Classified Staff (Language Only) – The University proposes
language that authorizes it to administer all state-authorized
3
salary increases for classified employees of the University
(i.e., employees subject to the Virginia Personnel Act) on the
basis of merit rather than across-the-board.
Modify Appropriation Act Language to Eliminate Line Items for
Center for Diabetes and Center for Politics (Language Only) –
The University proposes to eliminate from the current
Appropriation Act the specific line item language related to the
Virginia Center for Diabetes Professional Education and the
Center for Politics. This action will not change the overall
appropriation, but will simply remove the language calling these
centers out separately.
Add Appropriation Act Language to Continue Operation of Hampton
Roads Center (Language Only) – The University relocated its
Hampton Roads Regional Center to Newport News. The State
Council of Higher Education for Virginia (SCHEV) conditionally
approved the continued operations of the center for a period of
one year and further provided that UVa must receive final
approval from the Governor and the General Assembly to continue
operating the site beyond the 2013-14 academic year. The
proposed language authorizes the continued operation of the
center, now operating as the University of Virginia Hampton
Roads Center.
AGENCY 209 – Medical Center:
Restore Medicaid Reimbursement to 100% - ($10.4 million GF in
year one and $10.9 million GF in year two) – The Medical Center
requests an increase to Medicaid prospective payment rates in
order to meet the need of an increasing number of Medicaid
enrollees and Virginia residents who fall within the state of
Virginia indigent criteria. The Medical Center requests that
state funding be restored from the current approximately 95% of
cost to the original 100% of the costs to care for Medicaid and
state-defined indigent patients, as previously received in
fiscal years 2007 and 2008 and as established by policy in 2004.
If the state does not return to the practice of fully
reimbursing the University for the care it provides to Medicaid
and indigent care patients, the Medical Center will have to
provide free medical care to these Virginia residents.
Add Appropriation Act Language to Clarify Existing Law Related
to Compensation of Medical Center Employees – (Language Only) –
The Medical Center proposes language to clarify that the Medical
Center is exempt from any state actions regarding compensation
of state employees in accordance with the codified autonomy
4
granted to the Medical Center in 1996. The human resources
system established by the Medical Center and approved by the
Board of Visitors better aligns with standard practices of the
health care industry and assists in the recruitment and
retention of nurses and other health care professionals.
AGENCY 246 – University of Virginia’s College at Wise:
Fund STEM Early College Academy – ($260,383 GF in year one and
$866,001 GF in year two) – The College at Wise requests general
funds to develop a one-year residential STEM Early College
Academy for high-achieving high school seniors, with no direct
cost to the student. Students residing within the southwest
Virginia corridor will be offered admission into this highly
selective program based upon their high school academic
credentials, writing and verbal skills, and the completion of
the application process and personal interview with the
selection committee. The planned curriculum will have a strong
science and math component, with courses in calculus, chemistry,
and biology. The liberal arts mission of the College will
enhance the Academy through courses in composition and writing,
while providing opportunities for students to engage in theatre,
art, music, lectures and student life, and extracurricular
programs. Forty students will be offered admission in fall
2015. Three new positions would be filled in 2014-2015 for a
director, recruiter, and support staff. In 2015-2016, four
Teaching and Research faculty positions would be filled.
Fund High-Need Degrees – ($69,108 GF in year one and year two) –
The College at Wise requests general funds to support the
continuance of programs dedicated to increasing degrees in STEMH disciplines, including: 1) enhancing marketing efforts in
STEM-H disciplines to include the college website and social
media, 2) developing an online RN-to-BSN program, 3) increasing
the engagement of teaching faculty in the recruitment of
students enrolling in STEH-H disciplines, 4) exploring the
feasibility of developing collaborative masters level programs
in STEM-H disciplines, and 5) creating a full-time professional
position focusing on internship/externship development and
career counseling in STEM-H fields.
Fund Appalachian Prosperity Project – ($300,000 GF in year one
and year two) – The College at Wise requests general funds to
support its investment in the Appalachian Prosperity Project
(APP) by staffing full-time leadership and administrative
support personnel to move APP to the next level of excellence
and capacity in continued service to Southwest Virginia.
5
Through a collaborative partnership among UVA-Wise, UVa, the
Virginia Coalfield Coalition, and numerous state, regional, and
community partners, the APP is a university-community-industry
partnership that uses a systems approach to simultaneously
advance education (Appalachians Building Capacity), health
(Healthy Appalachia Institute), and prosperity (Appalachian
Ventures) in Southwest Virginia. Born in 2007 as a result of
the Higher Education Restructuring Act, APP has grown into an
impactful, well-respected, and powerful initiative, making a
difference in a region experiencing even greater challenges with
the recent decline in coal-related jobs.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
APPROVAL OF STATE OPERATING BUDGET AMENDMENTS FOR THE 2014-2016
BIENNIUM FOR THE ACADEMIC DIVISION, THE MEDICAL CENTER, AND THE
UNIVERSITY OF VIRGINIA’S COLLEGE WISE
WHEREAS, the proposed biennial budget requests represent
the highest priority initiatives and are aligned with the sixyear plan submitted to the Commonwealth on July 1, 2013;
RESOLVED, the Board of Visitors of the University of
Virginia approves the 2014-2016 biennial budget requests
accompanying this resolution; and
RESOLVED FURTHER, the Board of Visitors understands that to
the extent these initiatives are not included in the Governor’s
2014-2016 biennial budget, the University may want to pursue
similar requests to the Legislature; and
RESOLVED FURTHER, the President or her designee is
authorized to transmit to the General Assembly any request not
funded by the Governor as long as there are no material
differences from the items already endorsed by the Board of
Visitors.
6
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
I.B. 2014-20 State-Required Six-Year Plan
for the Academic Division
BACKGROUND: Section 23-38.87:17 of the Higher Education
Opportunity Act of 2011 (HEOA) requires that each institution
develop, adopt, and submit biennially a six-year plan addressing
the institution’s academic, financial, and enrollment plans.
DISCUSSION: In accordance with the HEOA and subsequent
communication from SCHEV, the University submitted the 2014-20
Six-Year Institutional Plan for the Academic Division on July 1.
The plan reflects programs and general strategies that will
advance the objectives outlined in the HEOA, as well as
initiatives that will enhance the quality of education,
research, and service at the University. On August 28, the
Director of SCHEV, the Secretaries of Education and Finance, the
Director of the Department of Planning and Budget and the Staff
Directors of the House Appropriation and Senate Finance
Committees met with President Sullivan and others to discuss the
University’s plan. As part of the process, written comments
were provided on September 5. There were two comments specific
to the University’s plan:
1.
Please update the section of your plan that addresses
Access UVA with your most recent action on the program.
2.
While we understand that you may be unable to provide
specifics at this time, please provide the broad
categories and estimates for reallocations and savings.
The University will respond to the comments and must submit
the final 2014-20 Plan by October 4. The HEOA requires Board of
Visitors’ adoption of the plan. The University’s plan is
included as an attachment.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
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APPROVAL OF 2014-2020 STATE REQUIRED SIX-YEAR INSTITUTIONAL PLAN
WHEREAS, §23-38.87:17 of the Virginia Higher Education
Opportunity Act of 2011 requires the governing boards of all
public institutions of higher education to develop and adopt
biennially an institutional six-year plan and submit that plan
to the State Council of Higher Education (SCHEV), the Governor,
and the Chairs of the House Committee on Appropriations and the
Senate Committee on Finance; and
WHEREAS, the University submitted its preliminary plan for
the Academic Division as required on July 1, outlining general
strategies to advance the objectives of the Act and to enhance
teaching, research, and service; and
WHEREAS, final institutional plans must be approved by the
Board of Visitors and submitted to SCHEV, the Governor, and the
Chairs of the House Committee on Appropriations and the Senate
Committee on Finance no later than October 1;
RESOLVED, the Board of Visitors approves the 2014-20 sixyear institutional plan for the Academic Division; and
RESOLVED FURTHER, the President is authorized to transmit
the six-year plan to SCHEV, the Governor, and the chairs of the
House Committee on Appropriations and the Senate Committee on
Finance.
8
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
I.C. Capital Project Financing Plan:
Road Office Building
Rugby
BACKGROUND: The Board of Visitors approved the updated multiyear capital plan at its April 2013 meeting, which included (in
the 2018-20 biennium) the renovation of a building on Rugby Road
that previously served as a faculty apartment building, known as
the Rugby Faculty Apartments. The Housing Division stopped using
the building for apartments in 2003 and it has remained vacant
ever since. The University engaged an architect in 2008 to
design a renovation that would allow the building to be
converted to office space. The financial downturn later that
year intervened and the University never pursued the renovation.
The University would like to initiate the project again to
address some of its current short-term space needs.
DISCUSSION: Built in 1924, the former Rugby Faculty Apartments
is deemed a contributing structure according to the University
Historic Framework Plan. It is one of Fiske Kimball’s last
works at the University. The building is listed in the National
Register of Historic Places as a contributing resource within
the Rugby Road-University Corner Historic District. The project
will renovate 25,000 gross square feet as generic office space
using as a basis the design developed in 2008 by the
architecture firm Glave Holmes.
The project aligns with related actions that address a
number of the University’s strategic priorities:



Converts a non-productive asset to usable space close to
central Grounds.
Provides an opportunity to relocate a number of small units
currently in leased space, redirecting those lease payments
to service the debt on the Rugby Building.
At least two of the units that could relocate to the Rugby
Road building currently occupy valuable space at the
Fontaine Research Park that could be better used as
clinical or research space producing income for the Medical
Center.
9

In the short term, provides needed swing space for
temporary relocation of units in the Rotunda wings while
that building undergoes renovation, avoiding the cost of
leasing space for this purpose.
The rehabilitation includes replacement of HVAC, electrical
and plumbing systems, installation of security and fire
suppression systems, abatement of hazardous materials,
installation of an elevator, and entrance accessibility
improvements. The project budget has been developed using
current cost benchmarks for the particular type of construction
with an estimated cost of $8.1 million to $10.0 million. The
University would allocate between $1 million and $2 million in
deferred maintenance funds with the balance of the project cost
funded from debt in an amount between $7.1 million and $8.0
million depending on final project cost.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
APPROVAL OF THE FINANCIAL PLAN FOR THE RENOVATION OF THE RUGBY
ROAD OFFICE BUILDING
RESOLVED, the Board of Visitors endorses the financial plan
for the renovation of the Rugby Road Office Building with an
expected budget of $8.1 million to $10.0 million to be financed
with $1-2 million in deferred maintenance funds and $7.1-8.0
million in University bonds.
10
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
I.D. Authorization of and Intent to Issue
Tax-Exempt Debt
BACKGROUND: Under federal tax regulations, prior to the
University’s issuance of tax-exempt debt to finance a capital
project, the Board of Visitors must approve an intent-to-issue
resolution, so that the University may reimburse itself with
debt for certain qualified expenditures related to the project.
This resolution also authorizes the University to finance a
capital project on a short-term basis through the University’s
commercial paper program, where appropriate. Short-term debt
may be provided for a capital project only after the
project’s business plan, including documentation of a
project’s fiscal soundness, has been approved by the Capital
Outlay Executive Review Committee.
This resolution does not authorize the University to issue
long-term debt. Prior to the issuance of long-term debt, the
Board of Visitors will be asked to consider a separate issuance
resolution.
DISCUSSION: The following projects require an intent to issue
resolution in order for the University to reimburse itself with
debt for capital expenditures.
The North Grounds Mechanical Plant project will replace two
existing boilers and two chillers as well as their associated
auxiliaries at the North Grounds Mechanical Plant. This plant
provides central heating and cooling to more than half a million
gross square feet in the North Grounds precinct.
The Alderman Road Residence Area Replacement Housing, Phase
4, Building 6 project will be comprised of five stories, housing
176 first years, eight resident assistants, and one resident
coordinator.
The Ambulatory Practice Space project will enable the
Medical Center to move more expeditiously to renovate outpatient
facilities in response to Federal Healthcare Legislation and its
11
subsequent effect on the healthcare market in this region of the
state.
The Education Resource Center project includes a Medical and
Patient Education Complex (5,000 GSF), Medical Resident Work
Space (2,000 GSF), an Outpatient Pharmacy (5,500 GSF), Imaging
MRI/CT facilities (9,000 GSF), building support space (4,250
GSF), and a conditioned public lobby and link between the Cancer
Center and the Lee Street Garage (4,250 GSF).
The Facilities Management Shop Support/Office Building
project will construct a two-story, 14,000 GSF facility, to the
west of the Leake Building at 575 Alderman Road. The building
will be a simple structure consisting of shop support spaces and
office space for Facilities Management employees.
The Rugby Road Office Building project will renovate 25,000
GSF of the old faculty apartment building into usable office
space. The proposed project would rehabilitate the vacant
space, providing needed office space.
With any request for project debt funding, Treasury
Management performs a credit assessment to determine that the
funding identified by each of the sponsors is adequate to cover
the associated debt service payments. While this resolution
gives the University the authority to issue tax-exempt debt for
the projects listed below, the ultimate granting of a loan for a
project is dependent upon Treasury’s credit assessment.
This resolution would authorize a loan or loans and declare
the University’s intent to issue tax-exempt debt for the
projects listed above, in the following amounts:
12
Project
ACADEMIC DIVISION:
North Grounds Mechanical Plant
Alderman Road Residence Area
Replacement Housing, Phase 4,
Building 6
Facilities Management Shop
Support/Office Building
Rugby Road Office Building
MEDICAL CENTER:
Ambulatory Practice Space
Education Resource Center
Requested Intent
to Issue
Authorization
Total of
Requested and
Previous Intent
to Issue
Authorizations
$334,000
$6,200,000
$7,110,000
$29,600,000
$5,000,000
$5,000,000
$10,000,000
$10,000,000
$6,910,000
$25,400,000
$6,910,000
$25,400,000
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
AUTHORIZATION OF AND INTENT TO ISSUE TAX-EXEMPT DEBT
WHEREAS, the University intends to undertake certain capital
projects identified below (the “ Project”), and to finance
the Project through the issuance of tax-exempt debt, in the
maximum principal amount stated below for the Project:
ACADEMIC DIVISION
North Grounds Mechanical Plant - $334,000
Alderman Road Residence Area Replacement Housing, Phase 4,
Building 6 - $6,200,000
Facilities Management Shop Support/Office Building - $5,000,000
Rugby Road Office Building - $10,000,000
MEDICAL CENTER
Ambulatory Practice Space - $6,910,000
Education Resource Center - $25,400,000; and
13
WHEREAS, the University further intends to expend funds on
the Project and to reimburse such expenditures from the proceeds
of the tax-exempt debt; and
WHEREAS, to comply with the Internal Revenue Code of 1986,
as amended, and Section l.l50-2 of the Income Tax Regulations
(the “Regulations”), it is necessary, in order to reimburse
such expenditures incurred prior to the issuance of the taxexempt debt with the proceeds of such debt, that the University
declare its official intent to make such a reimbursement of
expenditures; and
WHEREAS, prior to the issuance of long-term debt, the Board
of Visitors will be asked to consider a separate issuance
resolution;
RESOLVED, short-term debt may be issued for the Project, but
only if the following conditions are met:
1. A comprehensive and detailed financial plan for the
Project is submitted to and approved by the Capital Outlay
Executive Review Committee; and
2. A school or unit shall remain responsible for repaying
any debt obligation incurred regardless of the status of such
school’s or unit’s Project; and
RESOLVED FURTHER, the Board of Visitors of the University of
Virginia declares its intent to expend funds on the Project and
to reimburse such expenditures from the proceeds of tax-exempt
debt, in accordance with the following:
1. This resolution is a declaration of official intent for
purposes of Section 1.150-2 of the Regulations; and
2. The University reasonably expects to issue tax-exempt
debt for the Project in the maximum principal amount stated in
the recitals above.
14
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
II.A. June 30, 2013 Academic Division
Financial Report
ACTION REQUIRED:
None
BACKGROUND: To provide a holistic view of the current financial
status of the University’s Academic Division, the unaudited
financial report for the year ended June 30, 2013 includes:



statement of net assets compared to prior year;
statement of revenues, expenses, and changes in net
assets compared to prior year; and
operating sources and uses, budget versus actual results.
The Commonwealth’s Auditor of Public Accounts is currently
on-site performing the year-end audit. It is anticipated that
year-end statements will be completed in late fall.
DISCUSSION:
Statement of Net Assets
This statement, on the following page, provides Academic
Division’s net assets as of June 30, 2013 and 2012. The
unaudited statement is developed based on Generally Accepted
Accounting Principles (GAAP). The unaudited statements include
material adjustments and accruals in order to be reasonably
accurate, but are not on a full accrual basis.
Net assets are up nearly $471 million or 9.1%, primarily
due to a 13.4% annual return on investments.
The $49 million in receivables are primarily comprised of
billing for sponsored research ($22.1 million) and student
charges ($20.4 million). Past due receivables over 120 days are
only $2.1 million, just over 4% and well within the Commonwealth
of Virginia’s management standard of 10%.
Endowment and other long-term investments are up nearly
$342 million, on the strength of 13.4% return on investments in
15
UNIVERSITY OF VIRGINIA - Academic Division Only
Statement of Net Assets (Unaudited)
As of 6/30/13
As of 6/30/12
(in 000s)
ASSETS
Current Assets
Cash and short term investments
Receivables (accounts, notes, other)
Inventories, prepaids and other
Total current assets
$
Noncurrent Assets
Endowment and other investments
Receivables (pledges and notes)
Deposits with bond trustees
Capital assets, net
Total noncurrent assets
495,297
48,695
266
544,258
$
4,023,415
21,166
21
2,161,195
6,205,797
Total assets
$
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Deferred revenues and deposits
Commercial Paper
Internal deposits held Wise and agencies
Total current liabilities
Noncurrent Liabilities
Long-term debt
Other long-term liabilities
Total noncurrent liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted:
Nonexpendable
Expendable
Unrestricted
Total Net Assets
Total liabilities & net assets
$
3,681,778
19,886
17,787
2,047,232
5,766,683
$
6,222,201
17,150
152,071
139,593
9,873
318,687
20,137
158,600
127,463
11,699
317,899
815,078
493
815,571
758,568
581
759,149
1,134,258
1,077,048
1,220,059
$
498,277
2,541,985
1,355,476
5,615,797
$
16
6,750,055
408,743
46,476
299
455,518
6,750,055
1,231,828
485,919
2,269,045
1,158,361
5,145,153
$
6,222,201
FY13. Further information on the endowment’s performance this
year is included in the written report from the University of
Virginia Investment Management Company (UVIMCO) on page 24.
Student loan receivables, depending on payment schedules,
are included in accounts payable and long-term debt. Student
loan receivables of $39.0 million include $19.7 million through
the Federal Perkins Loan Program, $1.0 million through the
Federal Nursing Student Loan Program, and $18.3 million through
loan programs managed by the University using philanthropy given
for this purpose. The default rates by University students on
the federal loan programs are below required thresholds: 6.4%
for Perkins versus the federal requirement of 15% and 2.1% for
nursing versus the 5% federal threshold. Collectively, the
default rate on University-managed loan programs stands at 2.3%.
Long-term debt and commercial paper are up, reflecting
actions taken earlier this year to issue new commercial paper,
convert commercial paper to long-term debt, and refund/refinance
existing long-term debt.
Statement of Revenues, Expenses, and Changes in Net Assets
(SRECNA)
Shown on page 19, this statement outlines the Academic
Division’s revenues, expenses, and other changes in net assets
as of June 30, 2013 as compared to the same period last year.
It is developed based on GAAP but is unaudited.
At June 30th, net assets are up nearly $471 million or 9%,
primarily attributable to the 13.4% return on investments.
Compared to the prior year, operating revenues and operating
expenses are up 1.9% and 1.6%, respectively. Most of the
increase in operating expenses comes from the one-time employee
bonus awarded in November 2012. Without the bonus, revenues and
expenses would show a slight increase of less than 1%.
Operating Revenues: Total operating revenues for the year ended June 30, 2013
were $1.15 billion, up 1.9% over the prior year. Student
tuition and fees are reported net of discounts and allowances,
and are up about 4.2% as compared to last year. Undergraduate
enrollment growth and increases in tuition and fees approved by
the Board of Visitors in April 2012 account for the increase.
17
Spending from grants and contracts is down 4.2% overall,
but with a varied mix by source. As anticipated, the federal
budget uncertainty with Continuing Resolutions and Sequestration
in lieu of an approved federal spending plan has adversely
affected federally funded grants, which are down over $20
million, or nearly 8%. Spending on state and local grants is up
by $4.5 million, mostly due to a large subcontract. Spending on
grants from private industry and foundations is up about 6%.
State appropriations increased $8.6 million or 6.5%, with
the additional funding coming to support $5.3 million related to
employee benefits, the one-time November 2012 3% bonus, and
additional appropriations in support of the HEOA of 2011.
Spendable gifts are up $15.3 million or 11.6%. A few large
gifts from the foundations account for much of the increase.
Investment income is $504.5 million, reflecting the 13.4%
return on the UVIMCO Long Term Pool through June 30, 2013.
Additions to permanent endowment have declined by $23.9
million to $10.8 million. There was only one gift exceeding $1
million in FY13, compared to five gifts totaling $22 million in
FY12.
Operating Expenses:
Operating expenses were $1.25 billion, up $19 million or
1.6% for fiscal year 2013 as compared to last year. Most of the
increase is attributable to the 3% bonus paid to employees in
November 2012. Without the one-time bonus, operating
expenditures would have been up only $10 million or slightly
less than 1%.
18
UNIVERSITY OF VIRGINIA - Academic Division Only
Statement of Revenues, Expenses, and Changes in Net Assets (Unaudited)
OPERATING REVENUES AND EXPENSES:
Operating Revenues
Student tuition and fees, net
Grants and contracts (federal, state, nongovernmental)
State appropriations (includes ARRA state stabilization)
Gifts
Sales and services of educational departments
Auxiliary enterprises revenues, net
Pell grants
Total operating revenues
Year Ended
Year Ended
6/30/2012
6/30/2013
(in 000s)
$
Operating Expenses
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation of plant
Student aid, net
Auxiliary
Depreciation
Other
Total operating expenses
423,516
304,215
140,208
147,143
18,085
105,351
7,916
1,146,434
$
327,228
280,155
34,108
134,112
38,090
72,523
77,350
50,213
118,432
106,409
11,321
1,249,941
Operating revenues less operating expenses
NONOPERATING REVENUES AND EXPENSES
Nonoperating Revenues
Capital appropriations, grants and gifts
Investment income (loss)
Additions to permanent endowments
Other
Total nonoperating revenues
Nonoperating Expenses
Interest on capital asset related debt, net
Loss on capital assets (gain)
Total nonoperating expenses
Nonoperating revenues less nonoperating expenses (losses)
Total Revenues
Total Expenses
Increase (decrease) in net assets
NET ASSETS
Net assets - July 1 (Beginning)
$
Net assets -- June 30 (ending)
19
406,399
317,405
131,590
131,822
20,352
109,352
8,297
1,125,217
310,209
281,312
32,773
126,962
35,909
75,328
75,329
53,902
122,105
103,975
13,022
1,230,826
(103,507)
(105,609)
78,258
504,535
10,845
3,154
596,792
55,544
182,717
34,722
14,056
287,039
20,854
1,787
22,641
13,334
919
14,253
574,151
272,786
1,743,226
1,272,582
470,644
1,412,256
1,245,079
167,177
5,145,153
4,977,976
5,615,797
$
5,145,153
Operating Sources and Uses, Budget vs. Actual
This report, on page 23, reviews actual results as of
June 30, 2013 compared to budgeted outcomes for the sources
and uses of funds of the Academic Division. The cash-based
operating plan differs from the GAAP SRECNA in the following
ways:

External debt service, UVa Health Plan activity, and endowment
investment performance are excluded, while repayments of debt
to the internal bank and the expendable endowment distribution
are included.

Depreciation is excluded and most equipment purchases are
reported as a use of funds, and are not capitalized.

Only gifts received and available for the operating plan are
included. Pledges, non-cash gifts, gifts transferred to the
endowment or capital program, and gifts held at foundations
are excluded.

The operating plan nets financial aid funded from tuition from
gross tuition, but does not exclude financial aid funded from
other sources (gifts, endowments, and grants).

The operating plan reflects mandatory fees collected for
auxiliaries and internal revenues collected from internal
departments as other tuition and fee and sales, investment,
and other revenue.

The operating plan excludes unrealized gains.
Through June 30, 2013, actual net sources exceeded uses by
$20.5 million, due to restricted funds received that could not
be matched with appropriate expenditures in FY13; funds set
aside to comply with operating reserve requirements; funds which
were committed but not spent on multi-year start-up packages;
and other items.
Sources of Funds:
Actual available sources of funds for the Academic Division
as of June 30, 2013 were $1,366 million, or 6.2% less than the
$1,456 million budgeted for the year. The 2012-13 revised
budget anticipated that operating balances would contribute $105
20
million towards operating expenses, while only $20.9 million was
required to cover 2012-13 spending.
Total net tuition and fees ended the year below the revised
budget by $4.5 million, or 1%. Net professional tuition was
$2.0 million or 2.1% below budget primarily related to lower
than expected enrollments in McIntire graduate and Darden
executive programs. Net other tuition ended the year $2.2
million or 2.3% below expectation. The shortfall is related
primarily to the School of Continuing and Professional Studies,
with several contributing items that include a prior year
accounting adjustment, the transition of academic programs to
Curry, and fewer enrollments than projected.
Grants and Contracts through the end of June 2013 totaled
$248.4 million, an $11.1 million increase over the annual
projection. The 2012-13 budget conservatively estimated fiscal
year spending due to anticipated federal budget reductions and
Sequestration. The unresolved federal budget situation and the
multi-year nature of grants and contracts make it difficult to
predict spending for a fiscal year with great precision. Based
on current awards, it is anticipated that grant and contract
spending will continue to decline.
The total estimate for gifts was $136.4 million compared to
actuals through June 2013 of $123.1 million. While gifts via
affiliated foundations exceeded the estimate of $102.5 million
by $1.6 million, expendable gifts for operations were $14.9
million lower than expected. During the fourth quarter, there
was a trend for annual donors to redirect giving to both
foundation and capital projects, such as the Rotunda
restoration.
Uses of Funds:
Total uses of available funds for the Academic Division
totaled $1,345 million which is 7.2% below the fiscal year
2013 revised budget.

Direct Instruction ended the year $16.7 million or 4.8% below
the planned expenditures, primarily due to timing differences,
hiring commitments made but not expended, and departmental
contingency reserves.

Academic Support is $20.2 million or 12.7% below budget, due
to timing differences, hiring commitments made but not
expended, and departmental contingency reserves.
21

General Administration is $17.1 million or 19.2% below the
annual budget, primarily due to timing differences, hiring
commitments, operational savings efforts, and departmental
contingency reserves.

Operation and Maintenance of Physical Plant is $33.5 million
or 28.2% below the revised budget, primarily due to lower
utility costs and deferred utility improvement spending.

Internal Debt Service/Transfers is $8.2 million or 7.1% below
the annual budget primarily as a result of savings that
resulted from prepayment of debt during the year.
22
23
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
II.B. Endowment Report – Market Value and
Performance as of June 30, 2013
ACTION REQUIRED:
None
BACKGROUND: The University of Virginia Investment Management
Company (UVIMCO) provides investment management services to the
Rector and Visitors of the University of Virginia and its
related Foundations. Assets deposited in UVIMCO are held in the
custody and control of UVIMCO on behalf of the University and
Foundations within a long-term, co-mingled investment pool.
UVIMCO’s primary objective in managing the pool is to
maximize long-term real return commensurate with the risk
tolerance of the University. To achieve this objective, UVIMCO
actively manages the pool in an attempt to achieve returns that
consistently exceed the returns on a passively managed benchmark
with similar asset allocation and risk. Recognizing that the
University must attract outstanding students, faculty, and staff
and provide them appropriate resources, UVIMCO attempts to
manage pool assets to provide long-term real returns that
compare favorably with the returns of endowments of other
outstanding schools. UVIMCO does not set spending rates.
UVIMCO communicates the Pool’s risk and return estimates to the
University and Foundations for their consideration in setting
spending rates.
DISCUSSION:
The June 30, 2013 report follows.
Quarter-End June 2013
SUMMARY
The following commentary provides information on the
current market environment as well as the asset allocation,
performance (unaudited), risk management, and liquidity position
of UVIMCO’s Long Term Pool as of and for periods ending June 30,
2013. In addition to this quarterly commentary, we will publish
the June 2013 Annual Report that will serve as the primary
source of public information about the Long Term Pool. We
24
expect to publish the Annual Report in September once KPMG’s
audit of our financial results is complete.
Over the past year, investors shrugged off many of their
lingering macroeconomic fears as solid corporate results and
expansive fiscal policies drove markets upward. Global equities
recorded gains of 17.2% during the year ended June 30, 2013, as
concerns about the fiscal health of the United States and
Europe, sequestration, the fiscal cliff, and the potential
collapse of the European Monetary Union all abated. In April,
investors showed their confidence in the markets by taking
margin debt (borrowing against brokerage accounts) to its
highest level ever. Across the globe, Japan’s TOPIX index was
up 21.0% for the past year, reflecting record stimulus measures
by the Bank of Japan and anticipated reforms from Prime Minister
Shinzo Abe. Tempering the global bull market were concerns
about China’s slowing economic growth and central bank-induced
credit squeeze, and hints from the Federal Reserve that
expansive U.S. monetary policies may be adjusted. Bond yields
rose and investors pulled out of emerging markets, preparing for
the day when easy money dries up. Emerging market equities
gained 3.2% during the year ended June 30, trailing developed
markets by the largest margin in over a decade.
Throughout fiscal year 2013, UVIMCO maintained the same
asset allocation and portfolio tilts that have served us well
for the past several quarters. We are pleased to report that
the Long Term Pool returned 13.4% in fiscal year 2013, a healthy
number in both absolute terms and relative to the policy
portfolio benchmark return of 11.3%. Over the twenty-year
period ending June 30, 2013, the Pool’s annualized return was
11.8%, exceeding the policy benchmark return by 460 bps. The
Long Term Pool finished the fiscal year with slightly less
market risk than the policy portfolio. Current themes continue
to be a relative overweight to quality equities, a small bias
towards emerging market equities, a low duration bond portfolio,
and a relative underweight to real estate.
MARKET ENVIRONMENT
Fiscal year 2013 was the mirror image of the prior year.
Global stocks outperformed bonds, “climbing the wall of worry”
to generate a 17.2% return while the Barclays Treasury index
lost 1.6%. This is in stark contrast to the prior fiscal year,
when global equities lost 6.0% and Treasuries gained 9.0%.
Although fiscal year 2013 began with many of the same investor
concerns as the prior year – slow global growth, global fiscal
25
problems and political risks – the markets shrugged off the U.S.
presidential election, the sequestration debate and other macro
worries to focus on company fundamentals, valuations, and
bottom-up opportunities. However, both fiscal years had one
thing in common: global equities and risk assets traded off
during the quarter ended June 30. During the three months ended
June 30, 2013, global equities lost 0.2%, emerging market
equities lost 8.0%, the VIX increased from 13% to 17% (after
starting the fiscal year at 17%) and high yield spreads widened
by 60 bps after narrowing by 150 bps during the first 9 months
of the fiscal year. The catalyst was not the negative growth or
deflation scare we had seen the prior couple of years, but
rather an increase in global bond yields. Long-duration
Treasuries lost nearly 6% in the second quarter of 2013, unlike
the nearly 11% gain realized in the second quarter of 2012.
The negative return earned by Treasuries during the year
ending June 30, 2013 was the first since the twelve months
ending June 2006. On May 22nd, Fed Chairman Ben Bernanke
discussed QE3 before the Joint Economic Committee stating “we
could in the next few meetings… take a step down in our pace of
purchases.” This language caused a sharp sell-off in bonds, and
losses at the long end of the curve were some of the worst in
the last century. Prior to this sell-off, many investors had
increased their allocation to bonds because of recent
performance in that asset class. According to Michael Goldstein
of Empirical Research Associates, “in the last 4½ years retail
investors have poured $1.3 trillion into bond funds and ETFs,
and the bulk of that came when ten-year Treasuries offered less
than 3%.” Jason Trennert of Strategas suggests we are in the
first inning of the “great rotation” from bonds to equities.
$59 billion was redeemed from bond funds in June, the largest
monthly outflow from bonds on record. U.S. equity mutual fund
inflows totaled $8 billion in 2013 after recording $613 billion
in outflows from 2007 to 2012. Will this rotation continue,
providing a tail-wind to stocks as bond yields gradually
increase, or will stocks and bonds move in the same direction as
they did in the most recent quarter? Jason Trennert analyzed
other periods of rising interest rates and concluded that higher
rates don’t necessarily lead to lower stock prices if the
increases are due to a stronger economy rather than higher
inflation expectations. Ten-year inflation expectations implied
by TIPS were 2% at the end of June, modestly lower than the
implied 2.2% inflation expected one year earlier. Jason argues
that low and well-anchored inflation expectations, combined with
reasonable valuations, could create an attractive environment
for equities as investors rotate out of bonds.
26
The future course of Federal Reserve policy will have a
large impact on the markets over the next several years. How
soon will the Fed taper or curtail their purchases of
Treasuries? The market consensus is that Fed QE has propped up
bond prices, and interest rates will rise as soon as the Fed
stops or reverses their purchases. The question is: when and
how fast will this increase occur? A recent Wall Street Journal
article entitled “Markets Brace for Post-Fed World” reflects the
markets’ concerns. A Google Trend search of “Fed Taper” shows a
sharp rise in internet search activity during 2013, peaking this
month. Despite statements from Federal Reserve officials that
tempered Chairman Bernanke’s May 22nd remarks, the continued
improvement in the U.S. economy argues for changes to Fed policy
sooner rather than later. Complicating future policy is the
likely retirement of Ben Bernanke when his current four-year
term ends in January 2014. The leading candidates to be the
next Fed Chairman include Larry Summers and Janet Yellen. The
inevitable transition will likely increase the risk of future
policy mistakes. It is important to remember that the last
three Fed Chairmen – Ben Bernanke, Alan Greenspan, and Paul
Volcker – all had severe market disruptions and challenges
during the first few years of their tenure. Will history repeat
itself in the first two years of the next Federal Reserve
Chairman’s term?
Asset Allocation
Our policy portfolio for the Long Term Pool continues to be
an allocation of 60% global public equity, 10% global public
real estate, and 30% global investment grade fixed income. This
portfolio is designed to provide long-term growth from equities,
an inflation hedge from real assets, and a deflation hedge from
fixed income.
The Long Term Pool’s actual allocation as of June 30, 2013
is 66.1% to equity managers (public and private), 14.1% to real
asset managers and 19.8% to fixed income (including marketable
alternatives, credit, bonds, and cash). Looking through to our
managers’ underlying investments, the Long Term Pool has a 53.9%
allocation to equities, 15.4% allocation to real assets, and
30.7% allocation to fixed income (including credit, bonds, and
cash) as of June 30, 2013. Our exposure to equities increased
3.9% last fiscal year, while real assets and fixed income
exposures both fell slightly. Drawdown investments were cashflow positive, generating $228 million in net cash inflows
during the course of the fiscal year. The market risk of the
27
Long Term Pool at fiscal year-end is consistent with but
slightly less than the market risk of the Policy Portfolio.
PERFORMANCE
Our 13.4% return for the fiscal year ended June 2013
surpassed the 11.3% return of our policy portfolio by just over
2%. All of our equity strategies recorded double-digit returns,
which is not surprising given the bull market that was evidenced
by a gain of 17.2% in the MSCI All Country World Equity Index
(MSCI ACWI) for the fiscal year. Our equity program’s 17.3%
return was quite strong considering the low beta for our public
equity portfolio, the low net equity position of our long/short
equity managers, and the fact that our private equity portfolio
tends to lag when markets go up quickly. Our real asset
investments provided positive returns of 7.2% for the year but
lagged the public benchmark by just under 3%. However, strong
short-term returns generated by our marketable alternatives and
credit managers drove an overall 6.6% return for our fixed
income portfolio (including marketable alternatives, credit,
bonds and cash), exceeding the Barclays Aggregate Bond index by
over 6%. Long-term performance for the total Pool remains
strong. Our ten-year return of 10.2% exceeds the 7.7% return of
our policy benchmark by a healthy margin.
EQUITIES
Public Equity
The public equity portfolio returned 22.8% for the fiscal
year versus the 17.2% gained by the MSCI ACWI. Over the past 10
years, the public equity portfolio has achieved an annualized
return of 14.6%, meaningfully outpacing the 8.1% gain of the
MSCI ACWI.
Again this year, security selection represented a key
driver of outperformance for UVIMCO’s public equity portfolio.
Our public equity managers take an in-depth approach to
fundamental research, utilize a long-term investment horizon,
build concentrated portfolios, and rely on stock selection as
the primary source of returns. While the magnitude of past
outperformance may not be repeated in the future, we continue to
believe that partnering with managers who exhibit these
characteristics provides the best opportunity to generate longterm excess returns. During the fiscal year, we also benefited
by the strong performance of consumer stocks, as we are
28
overweight consumer stocks in both the long-only public equity
and long/short equity programs.
Another long-standing characteristic of UVIMCO’s public
equity portfolio is a bias to emerging markets. This bias
proved beneficial to returns over the past decade, but
represented a headwind this past year. For the year ended June
30, 2013, the emerging markets index gained 3.2%, trailing
developed markets by the largest amount since 2001. Despite
this challenging environment, nearly all of our emerging-focused
managers outperformed their relevant country or regional
benchmarks for the year, a testament to their stock selection
capabilities. We continue to believe that the emerging markets
will remain an attractive area for skilled, fundamentally driven
managers to generate excess returns, and emerging markets
securities still account for greater than one-third of the Long
Term Pool’s public equity portfolio while emerging markets
represent only 13% of the MSCI ACWI. However, the Long Term
Pool’s exposure to emerging markets has declined over the past
year, largely due to the addition of several new managers who
primarily focus on developed markets.
Long/Short Equity
The long/short equity portfolio returned 17.3% for the
fiscal year versus 13.3% for the Dow Jones Credit Suisse
Long/Short Equity Index and 17.2% for the MSCI ACWI. Over the
past ten years, our long/short portfolio returned 9.6% versus
6.9% on the DJCS Long/Short Index and 8.1% on global equities.
UVIMCO’s long/short equity managers rely on intensive,
fundamental research in selecting both long and short
securities, with a bias towards higher growth, higher quality
companies on the long side and lower quality, secularly
declining companies on the short side. We expect our managers
to generate long-term alpha on both long and short investments,
but recognize this goal is difficult to achieve over shorter
time periods and in certain market environments. Recently, the
environment for shorting stocks has been particularly
challenging with low interest rates, excess liquidity, and
investor competition for shorts. As a result, returns from the
long/short equity portfolio were skewed to the long side during
the fiscal year ended June 30, 2013. However, the portfolio
maintained a net long position of just over 40% during the year,
which makes the overall return of 17.3% even more impressive.
Our managers continued to demonstrate strong stock selection and
an ability to quickly respond to changing dynamics in global
29
markets. For example, our long/short equity portfolio moved
from a net short to a net long position in developed Asian
markets, specifically Japan, as a number of our managers took
advantage of the improving backdrop for Japanese equities during
the fiscal year.
Despite the current challenges facing short investors, we
continue to believe there is value in the long/short equity
model, and remain committed to working with managers who share
our views on fundamental investing and long-term partnership.
Private Equity
For the 12-month period ending June 30, 2013, the private
equity portfolio returned 11.8%, underperforming the MSCI ACWI’s
17.2% return by a wide margin. In past quarterly reports, we
have discussed the difficulty inherent in measuring private
equity investments over relatively short time periods and why,
given the long-term investment horizon of the endowment, we
focus primarily on measuring long-term returns for private
equity. UVIMCO’s private equity portfolio has returned 11.5%
over the ten years ending June 30, 2013 versus 8.1% for the MSCI
ACWI. When considered separately, the buyout portfolio returned
11.3% for the fiscal year and the venture capital portfolio
returned 13.5%. The ten-year period produced a return of 13.2%
in the buyout portfolio and 6.7% in the venture capital
portfolio.
Private equity returns are driven by mergers and
acquisitions and Initial Public Offerings (“IPOs”), which is why
we spend time discussing these markets in our quarterly reports.
Exit alternatives for our private equity managers drive the cash
flow numbers noted below, and are the lifeblood of private
equity returns.
The quarter ending June 30 was characterized by a
relatively slow M&A market, with deal volume staying flat for
the first half of the calendar year. In contrast, Thomson
Reuters reported that transaction values were up, with 3,863
announced mergers in the U.S. valued at $431 billion for the
first half of 2013. In comparison, nearly 4,000 mergers valued
at approximately $345 billion were announced during the first
half of 2012.
Private equity-backed mergers were similar in that deal
values increased by 62% while the number of transactions
declined. Six hundred and ninety-eight private equity-backed
30
deals valued at $95 billion occurred in the U.S. during the
first half of the year, compared to 819 deals totaling $58.6
billion in the same time period last year. Despite this
slowdown in transactions, PricewaterhouseCoopers notes that CEOs
are generally positive about the market for the remainder of
2013, with 75% of CEOs expecting to grow their companies either
organically or by making acquisitions.
Fueled by the continuing bull market in domestic public
equities and an improving U.S. economy, second quarter 2013 IPO
activity increased dramatically over the first quarter.
According to data from Thomson Reuters and the National Venture
Capital Association, twenty-one venture-backed IPOs took place
during the second quarter, raising $2.2 billion, versus just
eight venture-backed IPOs in the first quarter which raised $717
million. The “proof is in the pudding” test, however, is in how
well a company does after going public. Thomson Reuters
reported that over 60% of companies with IPOs in 2013 were
trading above their offering price as of June 30. Year-to-date,
29 venture-backed companies have gone public, raising
approximately $2.9 billion. For the comparable period in 2012,
the dollar figure raised was $18.8 billion but, as noted in
previous quarterly reports, the 2012 number is distorted by the
Facebook IPO. Without Facebook, the 2012 number would be $2.8
billion raised. While the summer months are typically a quieter
period for IPOs, investment banks have indicated that a number
of companies are preparing to come to market later this year.
These plans could be derailed by a host of factors, including
concerns about changes in Federal Reserve policies, a weakening
Chinese economy, unraveling in the European markets, or a
correction in the domestic public equity market.
Continuing the trend that started well over a year ago,
UVIMCO’s private equity portfolio was cash-flow positive for the
quarter ending June 30, with distributions of $48 million versus
capital calls of $33 million. For fiscal year 2013, the net
cash inflows to the Long Term Pool from private equity were $107
million, resulting from $235 million in distributions versus
capital calls of $128 million.
REAL ASSETS
Real Estate
Commercial real estate values in the U.S. have been
steadily rising over the past four years and by some indications
are near peak levels, aided by low interest rates and higher
31
yields than fixed income. According to the Green Street
Commercial Property Index, which tracks the value of real estate
owned by REITs, values have increased 68% from their trough in
mid-2009, more than recouping all the ground that was lost
during the financial crisis. Despite many signs that strong
recoveries have occurred for certain sectors and geographies,
most research still indicates that the deleveraging process will
likely continue. The Linneman Real Estate Index, which compares
the supply of real estate capital with the fundamental demand
for space, notes that commercial mortgage debt is excessive and
that the deleveraging process that has been underway the past
three years will persist over the near term.
For the fiscal year ended June 30, 2013, UVIMCO’s real
estate portfolio generated a return of 8.7% versus a return of
10.0% for the weighted benchmark of publicly-traded U.S. and
international real estate securities. REITs continue to be a
source of yield for investors in an extended low interest rate
environment; however, the total return for the MSCI U.S. REIT
Index over the past fiscal year failed to keep pace with its
explosive returns over the past several years. For fiscal year
2013, the MSCI U.S. REIT Index returned 6.6% versus the 18.5%
annualized return over the past three years. Additionally, the
MSCI All Country World Real Estate Index was the main driver of
the fiscal year weighted-benchmark returns, with a 13.4% return
during the same period. U.S. REITs lost 3.4% in the most recent
quarter due to the rapid rise in bond yields. It is unlikely
REITs will continue to generate attractive returns going forward
if bond yields continue to increase.
On a relative basis, UVIMCO’s real estate performance lags
the weighted benchmark over three-, five-, and ten-year
timeframes, though the gap continues to narrow. Our current
real estate portfolio consists of investments with private
market managers who seek to opportunistically purchase assets in
markets with strong demographics where additional value creation
prospects exist. The vast majority of our real estate exposure
can strategically be classified as value-add, with exposure to
all major real estate sectors. The portfolio contains little to
no exposure to what is generally referred to as “core” real
estate. Geographically, the portfolio is concentrated in the
U.S. with some very targeted exposure to European markets.
Our real estate exposure over the past fiscal year has
remained stable at 8.6% of the Long Term Pool. Unfunded
commitments to real estate have also remained stable over the
past fiscal year. In total, our real estate managers called $82
32
million and distributed $78 million during fiscal year 2013,
requiring $4 million of net funding. This is in contrast to the
past five years, when the real estate managers on average used
$90 million of cash per fiscal year. We did not add any new
managers to the real estate portfolio in fiscal year 2013;
however, we reinvested with three existing managers and made two
co-investment commitments, bringing total real estate
commitments for fiscal year 2013 to just under $90 million.
Resources
Macroeconomic news related to the Fed’s anticipated
unwinding of its stimulus programs and China’s actual and
anticipated slowdown weighed heavily on commodities and
commodity-related equities over the last twelve months. The S&P
Goldman Sachs Commodity Price Index returned a modest 2.0% since
the beginning of the 2013 fiscal year while individual commodity
price returns varied widely. The COMEX Gold price ended the
fiscal year down 23.4%, with most of the price deterioration
occurring since early April when bond yields increased.
Conversely, the WTI Crude Oil spot price index ended the 2013
fiscal year up 13.4%, reflecting continued strong demand from
outside the OECD and supply concerns in the Middle East, which
were marginally offset by dramatic shale driven production
growth in the U.S. Of note, U.S. oil production eclipsed
imports in June for the first time since 1997. Meanwhile, the
price of natural gas finished up 30.5% in fiscal 2013,
reflecting the winding down of a modest, beginning-of-the-year
supply overhang resulting from strong domestic shale driven
production growth in recent years. This reduction in
inventories was primarily driven by colder winter temperatures
versus a year ago and a switch to natural gas fired power
generation at the expense of coal. Against this commodity price
backdrop, the S&P Global Natural Resources Equity Index declined
3.1% over the fiscal year.
UVIMCO’s resources portfolio generated a return of 4.5% for
the fiscal year ended June 30, 2013, which compares favorably to
the broad commodity and equity performance discussed above. Our
portfolio remains weighted towards managers focused on domestic
oil and gas plays. These managers have continued to capitalize
on the resurgence of the domestic oil and gas industry and have
generated strong returns from a strategy of acquiring,
aggregating and de-risking resource plays and selling the plays
to larger buyers with lower costs of capital. Going forward, we
expect a meaningful part of the opportunity set to be driven by
upstream players selling non-core assets to finance their
33
extensive drilling and production programs. Our resources
portfolio has generated exceptional long-term returns of 21.1%,
13.9%, and 23.2% per annum over the last three-, five-, and tenyear periods, respectively. We remain cognizant that these
returns will likely not persist going forward and continue to
seek out the best investments in the broad resource opportunity
set within the evolving domestic oil and gas industry.
The resources portfolio generated a net positive cash flow
during the fiscal year of $69 million, comprised of $122 million
in distributions and $53 million in capital calls. These cash
distributions equate to 32% of the resources portfolio’s market
value as of the beginning of the fiscal year and represent the
second largest annual total distributions in its history. As a
result of the large net outflows in fiscal 2013, the resources
portfolio now represents 5.5% of the Long Term Pool, down from
7.0% a year ago.
FIXED INCOME AND MARKETABLE ALTERNATIVES
Marketable Alternatives and Credit
Marketable alternatives and credit portfolio was up 15.7%
for the fiscal year, outperforming the Barclays High Yield index
return of 9.5%.
Our marketable alternative and credit managers represent a
variety of expertise in areas including bankruptcy claims,
distressed bonds, derivatives, structured products, direct
lending, high yield bonds, real estate lending, and postreorganization equities. Our managers tend to be deep value
investors with a strong focus on downside protection. The
majority of our marketable alternatives and credit managers are
opportunistic, with the flexibility and expertise needed to move
within the equity and credit space based on the current
opportunity set. For example, we have witnessed many of our
managers prepare for the unavoidable “bond tapering” by being
more aggressive on hedging out the direct interest rate risk of
their liquid credit exposure. This allows them to focus on the
company fundamentals instead of trying to predict the Fed
policies.
Bonds and Cash
During the quarter, our bond and cash portfolio was reduced
by investments made to new funds and distributions made to the
University. The total of bonds and cash as of June 30, 2013 was
34
9.8% of the Long Term Pool. Over time, we continue to expect
the sum of the liquid U.S. Treasury bond and cash portfolios to
vary between 8% and 12% of the Pool. Although this is a drag on
returns (especially in a zero interest rate environment), we
believe it provides insurance against future turbulent markets
and will allow us to fund attractive investments that will more
than make up for the return drag.
We continue to manage this part of our portfolio as a
source of liquidity. Our cash portfolio is invested in U.S.
Treasury bills and notes with maturities less than one year and
U.S. Treasury-guaranteed Repurchase Agreements with U.S.domiciled counterparties. The duration of the cash portfolio as
of June 30, 2013 was 0.28 years. Our government bond portfolio
has also been in short-term U.S. Treasury notes and bonds but
with maturities under three years. The average duration of this
portfolio as of quarter end was 0.93 years. The bond portfolio
returned 0.1% for the fiscal year, outperforming the Barclays
U.S. Treasury benchmark which lost 2.1%. Our short duration
added value this year, unlike the prior fiscal year.
RISK MANAGEMENT
Investors may be willing to bear risk if they are
adequately compensated with future higher returns. At UVIMCO,
we are willing to bear certain risks, but others must be
eliminated if we are unable to absorb the downside losses or if
we do not earn a sufficient risk premium from assuming those
risks. We consider three broad portfolio risks when managing
the Long Term Pool – market risk, manager risk, and liquidity
risk – and evaluate these factors relative to the risk tolerance
of the Long Term Pool shareholders.
Market Risk
The largest risk factor present in the Long Term Pool is
equity market risk. On a long-term basis we manage this
exposure through our investments in managers. On a short-term
basis we monitor our equity exposure with portfolio overlays
through the option and futures markets.
A common definition of market risk is the standard
deviation or volatility of a portfolio’s return. Volatility
provides a useful proxy for market risk if returns are normally
distributed. However, it is clear that both the broad market as
well as individual investment strategies are not normally
distributed, but rather are subject to a much higher probability
35
of negative “tail” events. Since investment returns are subject
to “tail risk,” it is useful to complement the standard
deviation statistic with an estimate of drawdown risk.
We manage market risk in the Long Term Pool by diversifying
across three broad asset classes: equity, fixed income, and real
assets. Our objective is to maintain estimated market risk in
the Long Term Pool that is less than or equal to the estimated
market risk of the policy portfolio. Our current estimate of
the volatility of the Long Term Pool returns is 11.0% versus
11.8% for the policy portfolio. In addition, the one-percentile
tail annual drawdown on the Long Term Pool is estimated to be 26.6%, less than the drawdown estimate of -30.2% on the policy
portfolio.
Manager Risk
The Long Term Pool invests with more than one hundred
external managers. We seek to maintain a portfolio of managers
that generates sufficient returns to compensate us for bearing
both market risk and the additional risk inherent in working
with individual managers. Manager risk includes tracking error
or active bets away from the benchmark, operational or business
risks, lack of transparency, and leverage.
Over time, UVIMCO has been well compensated for assuming
manager risk. Attribution analyses suggest that manager
selection is the largest contributor to the Pool’s long-term
outperformance versus the policy benchmark and peers.
Liquidity Risk
At UVIMCO, we define liquidity risk as an inability to meet
any of the following four primary liquidity requirements: (i)
withdrawals by the University and foundation investors, (ii) the
excess of capital calls over expected capital distributions from
private funds, (iii) the need to rebalance exposures following a
market decline, and (iv) the ability to deploy cash
opportunistically as new investment opportunities arise. We
manage this risk by maintaining a portfolio of Treasury bills
and bonds, maintaining sufficient liquidity with our public
equity and hedge fund managers, and managing the pace of
commitments to private investments.
Given our four primary liquidity requirements, we believe
that an appropriate target for liquidity is to have 8% to 12% of
the Long Term Pool invested in assets that are safe and highly
36
liquid, and at least 30% of the Pool available for conversion to
cash in any twelve-month period. As of June 30, 2013, we had
10% of the Long Term Pool invested in Treasuries, 31% of the
Long Term Pool that could be turned to cash within one quarter,
and 47% of the Pool that could be turned into cash within one
year. We also limit our unfunded commitments to private
investments to be no more than 25% of the Long Term Pool. Our
goal is to have 15% of unfunded commitments outstanding on
average. We finished the fiscal year with unfunded commitments
that were 16% of the Long Term Pool.
37
38
39
40
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
II.C. Annual Report on the UVa Employee
Health Plan
ACTION REQUIRED:
None
BACKGROUND: The University of Virginia manages its own employee
health plan. There are three main objectives in managing the
Plan:
(1)
(2)
(3)
Provide a health benefit that is attractive to current
and prospective faculty, staff and health system
employees.
Ensure financial stability of the health plan while
maintaining appropriate reserves.
Keep plan cost increases as low as possible while
keeping the plan fiscally sound and compliant with
regulations. This will be particularly challenging
over the next several years with employees using more
health care services than ever before and as we face
millions of dollars in taxes and fees as a result of
the Affordable Care Act (ACA).
In total, 13,639 employees participate in UVa Health Plan.
This represents 95% of those eligible to enroll. Included are
active employees in the Medical Center and the Academic Division
as well as retirees and COBRA participants. When spouses and
dependents are added, the total health plan enrollment is more
than 29,000.
The UVa Health Plan currently has two options – a Low
Premium Plan and a High Premium Plan. Twenty-one percent (21%)
of participants (2,856) are in the Low Premium Plan and 79% are
in the High Premium Plan (10,783). Average enrollment in the
High Premium Plan for 2012 decreased by 1%, while average
enrollment in the Low Premium Plan increased by 12%. This
increase is attributable to elections of the Low Premium Plan
during the annual Open Enrollment and auto enrollment. New
employees who do not enroll in the Health Plan are automatically
enrolled as employee-only coverage in the Low Premium Plan.
41
Total claim costs per participant are 44.6% lower in the
Low Premium than the High Premium plan. Encouraging enrollment
of more employees in the Low Premium plan has been an
intentional strategy over the past several years. The average
High Premium Plan participant utilizes $820 claims per month
(about $9,840 per year); the average Low Premium Plan
participant utilizes $454 claims per month (about $5,448 per
year).
Plan Costs
As a “self-funded” plan, the University does not purchase
insurance, rather we pay directly for the services employees and
their dependents use. As can be seen in Figure 1 below, the
total cost of the health plan for 2012 was $146 million; up from
$136 million in 2011.
Figure 1.
Total Health Plan Costs
As the University and Health System move toward the goals
of our strategic plan and respond to the changing dynamics of
healthcare, we are also facing significant taxes and fees as a
result of the ACA, totaling nearly $8 million in 2014 alone.
The ACA also requires us to reduce the cost of our health plan
to avoid an excise tax known as a “Cadillac Tax”, as early as
2018.
Total medical claims expense increased 7% in 2012. This is
due in large part to a significant increase in claims over
$100,000. These high cost claims have increased from $7.2
million in 2008 to $24.4 million in 2012.
Total prescription cost increased by 6%, largely due to a
19% increase in specialty drug cost. We have seen continued
increases in total cost for brand medications, and decreases for
generic. Higher copayments for Tier 2 and Tier 3 medications
42
were implemented in January of 2013, which should help mitigate
this. We have partnered with the Health System pharmacy to
encourage our employees to use UVa pharmacies in order to take
advantage of significantly lower cost 340(b) pricing, most
significantly on specialty medications.
Rate increases for next year are necessary to address the
rising costs from medical trends and Affordable Care expenses.
Three strategies will be combined to fund the increases. (1) $9
million will come from reserves. Third-party consultants
recommend a contingent reserve of 25%. There are adequate
reserves to cover the withdrawal and still meet that standard.
(2) Employer rates will increase 9%. (3) Employee rates will
also be increased. However, employees can entirely mitigate the
increase by completing a Biometric Screening and Health Risk
Assessment during Open Enrollment. Plans are also underway for
a 10% increase in retiree premiums. Other changes to the
program to offset these cost increases are detailed later in
this report.
Retiree Coverage
Included in the participant data provided above are
approximately 500 “early retirees”. These are retirees under
age 65. At age 65, retirees transfer to the Commonwealth of
Virginia health plan. Retirees represent 4% of participation in
the UVa Health Plan.
Retirees contribute through their premiums about $4 million
per year against expenses of about $5.5 million per year. On
average, a retiree utilizes $1139 per month, significantly more
than the $637 per month an active employee utilizes. This
difference results in a subsidy of about $5,325 per retiree per
year. The shortfall is subsidized by the active employee group.
Higher utilization is expected for this population group. A
premium increase of 10% is planned to help cover these costs and
close the discrepancy between the premiums and the expenses.
The increase represents about $47 per retiree per month.
The following table in Figure 2 provides the retiree
premiums for 2014.
43
Figure 2.
Retiree Premiums for 2014
Active Employee/Employer Premium Rates
In response to the ACA’s requirement that we offer health
coverage to certain qualifying individuals, we are introducing a
“High Deductible” Health Plan (also known as consumer driven)
called Basic Health. All other benefits-eligible employees will
also be able to elect this plan. At the same time, we are
renaming the current Low and High Premium Plans to Value and
Choice, respectively. Figure 3 below provides the monthly costs
for active employees in the plans.
The first column shows the
employee contributions, the middle column reflects the
University/employer contributions and the far right column
represents the total premium. Down the left side are the
coverage options the employee has from employee only or “single”
coverage, to the various dependent coverage options.
Figure 3.
Active employee premiums for 2014
Note: Employees who complete a Biometric Screening and the
Health Risk Assessment will remain at 2013 premiums.
One benchmark used to measure the effectiveness of the UVa
Health Plan is how it compares against the Commonwealth of
Virginia plan for other state employees. The long-term
expectation is that the UVa plan should provide equal or better
benefits for same or less cost. A third-party analysis reveals
44
that, overall the UVa plan continues to provide quality coverage
at less cost than the state plan.
Plan Changes for 2014
Major changes are scheduled this year. Some of these
changes are the result of difficult decisions. If we did
nothing, we would pass on double-digit premium increases to our
employees. Over time, this strategy would trigger the “Cadillac
tax” through the ACA, which would further increase the cost of
the plan in the years ahead. Instead of double-digit premiums
we are “doubling down” on wellness, keeping costs down, and
coverage steady. These changes will help the University
maintain affordable coverage and avoid millions in fees and
taxes. We have tried to make changes that protect the majority
of our enrollees while at the same time focusing on improving
health and choice.
The changes include: Increased focus on wellness, with
incentives to participate in Hoo’s Well; employees will avoid
premium increases by participating in the Biometric Screening
and Health Risk Assessment.
Employees will receive a monthly reward for being tobaccofree.
The medical and dental plans will be decoupled. This will
help us reduce the cost of the medical plan which will help in
our efforts to avoid the Cadillac Tax. Employees can buy up to
a dental plan with an enhanced level of coverage.
A “working spouse provision” will offer coverage for
spouses only if they do not have access to affordable coverage
that provides “minimum value” from their own employer.
Next Steps
The UVa Health Plan is managed on a calendar year basis.
An earlier open enrollment period is planned this year, from
October 7th to October 25th. During Open Enrollment employees are
also able to change coverage and plan options. Given the number
of plan changes, a comprehensive communication strategy has been
developed using print, email, interactive on-line tools, and
multiple informational sessions. All plan changes are effective
January 1, 2014.
45
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
II.D.
ACTION REQUIRED:
None
Darden Student Loan Program
BACKGROUND: With the elimination of federal support for
international student loan programs, Darden started offering
loan programs with the graduating Class of 2010 and
subsequently. These programs have been offered by Virginia
National Bank and the University of Virginia Community Credit
Union, and are now offered by Discover Bank. The risk of
default loss is covered by a combination of reserves, insurance,
and a guarantee by the Darden Foundation, back-stopped by the
University of Virginia and ultimately by the resources of the
Darden School itself. These loan programs have been available
to all students, domestic and international, though as a
practical matter, only international students avail themselves
of it. The student loan program was structured during an
extremely challenging capital market episode, and subsequently,
Darden and the University of Virginia have accepted risks and
positioned Darden to advance its mission, impact, and stature.
DISCUSSION: Dean Bruner will report to the Finance Committee
motives for establishing the student loan program, primarily to
attract international applicants and enrollees to sustain its
“Top Ten” strategy. He will report on recent discussions with
University administration, the Finance Committee chair, and
industry experts on how to structure the program to best serve
the mission and capabilities of the University of Virginia and
Darden.
46
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2013
COMMITTEE:
Finance
AGENDA ITEM:
ACTION REQUIRED:
II.E.
Executive Vice President’s Remarks
None
BACKGROUND: The Executive Vice President and Chief Operating
Officer will inform the Board of recent events that do not
require formal action, but of which it should be made aware.
47
MISCELLANOUS FINANCIAL REPORTS
Finance Committee
University of Virginia
September 20, 2013
UPDATE ON CURRENT FUNDRAISING INITIATIVES
University of Virginia
Capital Campaign Summary
as of 06/30/13
All Units
Expendable
1,207,925,895
146,863,357
97,001,538
271,163,546
107,525,588
Endowment
689,191,799
66,673,530
36,935,406
0
2,201,967
Total
1,897,117,695
213,536,887
133,936,944
271,163,546
109,727,555
Gift and Pledge Total 1,904,917,065
332,186,084
720,565,562
97,088,981
2,625,482,627
429,275,065
Campaign Total 2,237,103,149
817,654,543
Gifts and Pledge Payments
Outstanding Pledge Balances
Deferred Gifts
Private Grants
Gifts in Kind
Future Support
Additional Amounts To Be Raised
(1)
Total 3,054,757,692
-532,967,065
1,371,950,000
907,484,438
1,628,050,00
374,517,373
3,000,000,000
Rector & Visitors Gift Accounts Only
Expendable
540,669,392
78,965,314
59,109,813
0
59,502,513
Endowment
333,763,838
92,205,698
19,961,801
0
11,184
To
874,433,231
171,171,013
79,071,613
0
59,513,697
Gift and Pledge Total 738,247,032
188,144,503
445,942,522
21,067,659
1,184,189,554
209,212,162
Campaign Total Additional Amounts To Be Raised
Total 926,391,535
TBD
926,391,535
467,010,181
TBD
467,010,181
1,393,401,716
Gifts and Pledge Payments
Outstanding Pledge Balances
Deferred Gifts
Private Grants
Gifts in Kind
Future Support
TBD
1,393,401,716
Rector & Visitors Unrestricted Giving
Gifts and Pledge Payments
Deferred Gifts
Outstanding Pledge Balances
Total 10,955,726
200,000
58,219
11,213,945
0
0
0
0
10,955,726
200,000
58,219
11,213,945
(1) Excludes future or revocable support
Source: Office of University Advancement
Date: August 23, 2013
48
UNIVERSITY OF VIRGINIA
Endowment/Long-Term Investments, Including Related Foundations
at June 30, 2013
(in thousands)
The University of Virginia Medical School and related foundations
The College of Arts and Sciences and related foundations
The University of Virginia Law School and related foundation
Darden School and related foundation
Batten School of Leadership and Public Policy
School of Engineering and related foundation
The McIntire School of Commerce and related foundation
University of Virginia's College at Wise and related foundation
Graduate School of Arts and Sciences
School of Nursing
Curry School of Education and related foundation
School of Architecture and related foundation
School of Continuing and Professional Studies
Rector and
Visitors Funds
Related
Foundation
Funds Invested
by UVIMCO
Alumni
Association
Funds Invested
by UVIMCO
Foundation
Funds Invested
by Direction of
Foundation
Board
$
$
$
$
858,441
390,274
47,234
119,542
118,825
100,474
46,844
48,305
57,628
47,246
14,256
18,477
2,078
44,729
67,369
240,006
230,548
9,721
7,614
9,098
2,630
-
9,790
12,602
42,098
2,532
2,478
429
52
University of Virginia Medical Center and related foundations
Centrally Managed University Scholarships
Athletics and related foundation
Alumni Association
Provost
University of Virginia Foundation and related entities
Miller Center and related foundation
Alumni Board of Trustees
University Libraries
463,898
186,060
43,220
97,334
55,438
56,196
60,249
62,977
66,705
10,592
57,981
-
1,286
450
74,560
100
University - Unrestricted but designated
University - Unrestricted Quasi and True Endowment
University - Unrestricted Other
336,412
175,457
162,477
-
-
All Other
229,637
233,720
52,434
$ 3,675,753
$ 1,103,939
*Includes funds on deposit for other areas/schools not individually listed.
**Excludes approximately $60.1 million of board designated pension funds.
$
198,811
3,788
104,771
10,560
1,764
661
1,333
2,139
719
28,663 **
272
31,170
198
-
*
$
Total
$
912,960
474,033
392,011
360,650
118,825
111,959
89,603
59,784
57,628
49,724
25,493
22,255
2,130
554,096
186,060
106,919
105,730
97,334
66,903
66,030
57,981
56,296
-
336,412
175,457
162,477
11,909
527,700
197,947
$ 5,176,450
SOURCE: AVP/Finance
DATE: August 22, 2013
49
USES OF FUNDS FROM PRATT ESTATE
For Year Ended June 30, 2013
6/30/12
Unexpended
Balance
Arts & Sciences
Biology
Student Support
Faculty Salary Support
Research & Equipment
$
2012-13
Allocations
6/30/13
2012-13
Unexpended
Expenditures
Balance
$
108
129,564
129,672
263,224 $
64,310
1,767
329,301
259,815 $
61,416
321,230
3,410
3,002
131,331
137,743
15,164
56,708
310,068
381,940
85,221
100,000
(14,522)
170,699
100,385
92,557
116,594
309,536
64,151
178,952
243,103
35,628
47,468
83,096
40,339
121,417
(11,756)
150,000
40,339
91,905
5,746
137,990
65,141
29,966
95,106
239,943
178,027
709,119
1,127,089
68,000
38,061
143,939
250,000
306,878
47,627
5,415
359,919
1,066
168,461
847,643
1,017,169
Presidential Science Initiative
Provost Faculty Start-Ups
Pratt Master - To be Allocated
Total Arts and Sciences
715,134
9,802,892
54,836
12,294,659
2,300,000
3,200,000
1,137,339
2,266,014
715,134
10,965,554
54,836
13,228,645
School of Medicine
Student Support
Research & Equipment
Decade Plan
Pratt Master - To be Allocated
Total School of Medicine
82,687
576,586
8,190,729
8,850,002
147,839
1,152,161
2,500,000
3,800,000
215,478
1,714,078
3,421,363
5,350,919
15,048
14,669
7,269,366
7,299,083
7,000,000 $
7,616,933 $
Chemistry
Student Support
Faculty Salary Support
Research & Equipment
Mathematics
Student Support
Faculty Salary Support
Research & Equipment
Physics
Student Support
Faculty Salary Support
Research & Equipment
TOTALS
$
21,144,661 $
20,527,727
1
Includes amounts approved by the Board of Visitors for 2010-11, less amounts that will not be needed for the original
aproved purpose and will be reverted to the endowment balance.
SOURCE: University Budget Office
DATE: July 3, 2013
50
UNIVERSITY OF VIRGINIA
Quasi-Endowment Actions
April 1, 2013 – June 30, 2013
The quasi-endowment actions listed below were approved by either (1) the Executive Vice President and Chief Operating Officer, under the
following Board of Visitors' resolutions or (2) the Assistant Vice President for Finance and University Comptroller, under the delegation
of authority from the Executive Vice President and Chief Operating Officer:
● In October 1990 and June 1996 the Board of Visitors approved resolutions delegating to the Executive Vice President and Chief
Operating Officer the authority to approve quasi-endowment actions, including establishments and divestments of less than $2,000,000,
with regular reports on such actions.
● In February 2006, the Board of Visitors approved a resolution permitting approval of quasi-endowment transactions, regardless of dollar
amount, in cases in which it is determined to be necessary as part of the assessment of the business plan for capital projects. Additionally, to
the extent that the central loan program has balances, they may be invested in the long term investment pool managed by UVIMCO or in
other investment vehicles as permitted by law.
Additions from Gifts
Access UVA Scholarships
1
Duffy, Brian R. Fellowship Fund - History Quasi-Endowment
Jones D. Lung Cancer Research Quasi-Endowment
President's Fund for Excellence Unrestricted Quasi-Endowment
2
University Quasi-Endowment Fund
UVA Bookstore Quasi-Endowment for Excellence
$
Total Additions from Gifts to Quasi-Endowments
Amount
139,000
250,000
125,000
113,870
104,170
400,000
$ 1,132,040
Additions from Endowment Income (Capitalizations)
Antrim, Lottie C. Income Capitalization Quasi-Endowment
Athletics General Operations Quasi-Endowment
Chrysler, W. P. Fund for Engineering Library
Corcoran, W. W. Chair - History - Restricted Quasi-Endowment
Corcoran, W. W. Chair of History - Income Capitalization
Dermatology General Investment Fund
Hecht, Sidney M. Fellowship in Chemistry
Hecht-Cruachem Chemistry Quasi-Endowment #3
HOPE Physician Incentive Quasi-Endowment
Hughes Endowment Income Capitalization Quasi-Endowment
Jordan, Harvey E. Lectureship
Low, Emmet F. and N. Alyce Chair Quasi-Endowment
McIntire, Howard Quasi-Endowment in Neurology
3
Medical Center Capital Assets Quasi-Endowment
Miller, Mae W. Cancer Research Quasi-Endowment
Moyston, Vernah Scott Professorship in Ophthalmology Investment Quasi-Endowment
Plastic Surgery Quasi-Endowment Fund
Radiology Fund Special Diagnostic
Samuels, Bernard Ophthalmology Library Quasi-Endowment
School of Medicine Quasi-Endowment
Southwest-Dishner Gift Quasi-Endowment Fund
Taylor, Henry N. Fund
Virginia Quarterly Review - Anonymous
Total Additions from Endowment Income to Quasi-Endowments
$
8,942
81,680
1,702
116,525
29,126
30,548
8,599
1,419
62,945
1,862
1,399
1,201
22,089
6,629,414
5,929
4,269
18,067
4,305
2,439
86,179
16,054
317
548
$ 7,135,558
Divestments
Mellon Prostate Cancer Research Quasi-Endowment Fund
McIntire School of Commerce Operations Fund
Thaler, Myles H. Quasi-Endowment for HIV Research
$
Total Divestments from Quasi-Endowments
400,000
898,758
25,000
$ 1,323,758
Notes:
1
Quasi-endowment newly established or originally funded since April 1, 2013.
Includes current unrestricted gifts to the University which, under a standing Board of Visitors resolution, are required to be added to the
University's Unrestricted Endowment Fund.
3
Per February 7, 2008 BOV authorization, additional amounts up to $300 million can be made to this fund without further BOV approval.
2
SOURCE: AVP Finance
DATE: August 22, 2013
51
UNIVERSITY OF VIRGINIA
SALARY AND COMPENSATION FOR FULL-TIME INSTRUCTIONAL FACULTY
AT AAU AND SCHEV PEER GROUP INSTITUTIONS
These reports provide average compensation and salary figures for institutions included
in the Association of American Universities, and average salary figures for the University's peer
institutions, as established by the State Council of Higher Education in Virginia. These figures
include instructional faculty paid on a full-time basis; all medical faculty have been excluded.
Salary figures for those faculty with 11- or 12-month duties have been converted to nine-month
figures by adjusting the total salaries by a factor of 9/11ths. The source for these figures is "The
Annual Report on the Economic Status of the Profession, 2012-2013," Academe, March-April,
2013, the bulletin of the American Association of University Professors.
Source: Institutional Assessment and Studies
Date: August 5, 2013
52
UNIVERSITY OF VIRGINIA FACULTY SALARY AND COMPENSATION AVERAGES
Salary at AAU Institutions
 AAU salary data includes all sources of funds.

The 59 institutions included in this year’s rankings are only the U.S. institutions. Two
Canadian institutions, the University of Toronto and McGill University, have been excluded.
The list was revised this year to account for the addition of Boston University to the AAU.

The UVa average in each of the years displayed represents the salary average as of December
1 of that year and reflects the merit increase of that date.

In 2012-13, for the fifth consecutive year, the state did not provide any increase in faculty
salaries. However, deans of the individual schools within the University were allowed to
give increases for promotions, retention, additional responsibilities, and for maintaining
equity if they had available funds. The distribution of the faculty by rank changed somewhat
in 2012-13. Compared to previous years, there were proportionally fewer full professors.
The result was a slight average salary decrease of 1.35%. The median increase among AAU
institutions was 2.4% and UVa’s rank among the AAU decreased by eight positions to 34th.

In 1989-90, before the first round of the Wilder budget cuts, UVa ranked 18th (69th
percentile) in the AAU. Since then, our ranking has varied, never rising above 18th,
dropping to its lowest level in 2012-13 (43rd percentile). During that 23-year period, the
University’s average salary increased from $54,100 in 1989-90 to $109,400 in 2012-13 (a
total increase of 102.2%, which is the equivalent of an annual 3.11% increase applied and
compounded each year).

The University’s current position in the AAU, 34th, is well short of the BOV new target of
20th. This gap represents $8,000 in average salary.
Compensation at AAU Institutions
 As in the case of the average salary, average compensation was reported as of December 1 of
those years. The average compensation includes both salary and benefits.

The UVa percentage compensation decreased 0.22% in 201-13, also caused by the fewer
numbers of full professors. This was well below the median for the AAU (2.14%) and
resulted in an decrease of three positions in our compensation ranking, from 29th to 32nd.

In 1989-90 UVa ranked 20th (65th percentile) in compensation. Since then our ranking has
varied, never rising above 20th nor falling below 33rd, and now stands at 32nd (47th
percentile) in 2012-13. During that 23-year period our average compensation increased from
$66,800 in 1989-90 to $138,400 in 2012-13 (a total increase of 107.2%, which is the
equivalent of an annual 3.22% increase applied and compounded each year).
53
State Salary at SCHEV Peer Institutions
 In the summer of 2007, SCHEV approved a new sample of peer institutions for the
University. The following table includes the salary averages of the new peer group in 200708 through 2012-13. Again, the UVa state salary average represents the salary average as of
December 1 each year. The UVa state salary averages listed in the table represent the
authorized state salary averages rather than the actual averages. They are intended to exclude
all UVa endowment funds.

Five consecutive years without state faculty salary increases has caused UVa’s rank among
the new sample peers to drop to the 20th position (20th percentile) in 2012-13.

In 1989-90, UVa ranked 10th in the State peer group that was in effect at that time. Two new
peer groups have been approved since then. In the current peer group, the University began
in 2007-08 at position 15, at the 41st percentile, and has dropped to 20th (20th percentile) in
2012-13.
Source: Institutional Assessment and Studies
Date: August 05, 2013
54
Average Salary for Full-Time Instructional Faculty at AAU Institutions, 2007-08 to 2012-13
Rank
2007-08
2008-09
2009-10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
22
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Stanford U
147,400
Harvard U
142,700
Cal Tech
141,200
U Penn
134,700
Princeton U
131,700
Duke U
125,700
Northwestern
124,200
Yale U
124,200
123,300
MIT
U Chicago
121,800
Columbia U
120,800
UCLA
114,000
UC Berkeley
113,800
Cornell-Endow 113,400
Emory U
112,400
Brown U
107,800
Washington U 107,500
NYU
106,300
UC San Diego 106,300
CMU
103,700
Rice U
103,700
USC
103,000
U Virginia
103,000
UNC
101,900
1 101,600
Johns Hopkins
Rutgers U
101,300
Vanderbilt
101,100
UC Santa Barb 100,300
UC Davis
99,800
UC Irvine
99,568
U Michigan
99,000
U Maryland
97,900
U Illinois
97,100
97,100
U Rochester
Ohio State
95,700
Brandeis U
93,500
U Texas
92,200
U Arizona
91,900
U Minnesota
91,700
Case Western
91,700
U Washington
91,200
U Iowa
90,800
U Wisconsin
89,300
SUNY StonyBrk 88,900
SUNY Buffalo
88,800
Mich St U
87,300
Purdue U
86,900
U Kansas
86,700
Indiana U
86,300
Syracuse U
85,400
U Colorado
84,500
Penn State
84,200
U Pittsburgh
83,300
Tulane U
83,300
Texas A&M
82,800
U Florida
82,500
U Nebraska
82,200
Iowa State
81,800
U Missouri
76,100
U Oregon
69,800
_____________
Stanford U
154,500
Harvard U
149,400
Cal Tech
147,300
U Penn
139,500
Princeton U
137,500
Duke U
132,700
Columbia U
131,100
Northwestern
130,700
MIT
130,600
Yale U
130,500
U Chicago
127,600
Emory U
119,600
Cornell-Endow 118,800
UCLA
116,800
UC Berkeley
116,500
Washington U 114,400
Rice U
111,100
Brown U
110,400
NYU
110,300
CMU
109,700
UC San Diego 107,200
Rutgers U
106,800
USC
106,000
UNC
106,000
1 105,900
Johns Hopkins
U Virginia
103,900
Vanderbilt
102,900
U Michigan
102,600
UC Santa Barb 102,300
U Rochester
102,100
U Maryland
102,000
UC Irvine
101,900
UC Davis
101,600
Ohio State
100,500
U Illinois
99,700
Brandeis U
96,400
U Washington
96,400
U Texas
96,100
SUNY Buffalo
94,800
U Iowa
94,100
SUNY StonyBrk 94,100
Case Western
93,900
U Minnesota
93,400
U Wisconsin
93,400
U Kansas
91,400
Mich St U
91,000
Purdue U
90,100
Indiana U
89,300
U Colorado
88,300
Syracuse U
88,200
Penn State
87,500
U Pittsburgh
87,300
U Arizona
87,200
Texas A&M
86,000
U Nebraska
85,900
U Florida
85,300
Iowa State
85,300
Tulane U
84,100
U Missouri
81,600
U Oregon
73,300
_____________
Stanford U
153,900
Harvard U
150,000
Cal Tech
145,600
Columbia U
141,400
Princeton U
140,300
U Penn
139,900
Northwestern
134,100
132,200
MIT
U Chicago
132,100
Duke U
131,400
Yale U
129,400
UCLA
121,800
Emory U
120,600
Cornell-Endow 119,900
UC Berkeley
118,800
Washington U 116,100
Rice U
113,400
NYU
111,400
CMU
110,900
UC San Diego 108,800
Brown U
108,300
USC
107,300
Rutgers U
107,100
Johns Hopkins 1 106,885
UC Santa Barb 105,500
UNC
105,500
UC Irvine
104,100
U Michigan
104,000
U Virginia
103,900
U Maryland
103,600
Ohio State
103,400
UC Davis
103,400
102,300
U Rochester
Vanderbilt
101,500
U Illinois
100,100
SUNY StonyBrk 97,700
SUNY Buffalo
97,400
Brandeis U
97,100
U Washington
96,500
U Texas
96,300
Case Western
94,700
U Wisconsin
94,500
U Iowa
94,100
Mich St U
93,100
U Minnesota
92,900
Indiana U
90,800
Purdue U
90,500
U Arizona
89,000
U Colorado
88,800
U Kansas
88,100
Syracuse U
87,900
Texas A&M
87,900
U Pittsburgh
87,600
U Nebraska
87,300
Penn State
86,700
Tulane U
86,600
U Florida
85,300
Iowa State
84,800
U Missouri
81,700
U Oregon
76,000
_____________
Median Increase: 4.05%
UVa Increase: 4.04%
Va Percentile Rank: 63rd
#
#
2010-11
#
Median Increase: 4.24%
Median Increase: 0.93%
UVa Increase: 0.00%
UVa Increase: 0.87%
Va Percentile Rank: 58th UVa Percentile Rank: 53rd
Stanford U
Harvard U
Cal Tech
U Penn
Columbia U
Princeton U
Northwestern
U Chicago
MIT
Yale U
Duke U
UCLA
UC Berkeley
Cornell-Endow
Emory U
Washington U
Rice U
NYU
Georgia Tech
CMU
Brown U
USC
UC San Diego
Johns Hopkins 1
Rutgers U
UC Santa Barb
Vanderbilt
U Virginia
U Michigan
Ohio State
UNC
U Rochester
UC Irvine
UC Davis
SUNY StonyBrk
U Illinois
U Maryland
SUNY Buffalo
U Texas
Brandeis U
U Wisconsin
Case Western
Purdue U
U Washington
U Iowa
Mich St U
U Minnesota
Indiana U
U Pittsburgh
Penn State
U Arizona
U Florida
Tulane U
Iowa State
U Kansas
U Colorado
Texas A&M
U Missouri
U Oregon
2012-13
2011-12
159,500
151,300
150,900
144,300
143,800
142,700
137,300
136,300
135,800
134,400
133,300
126,100
123,000
122,800
120,800
118,900
116,000
113,200
112,900
112,500
112,200
111,400
110,400
109,553
108,900
107,700
107,200
106,300
106,000
105,500
105,400
105,300
104,900
104,500
103,800
103,500
102,700
102,100
100,000
98,500
97,400
97,000
96,400
95,300
95,000
94,500
92,400
91,000
90,500
90,000
89,800
89,400
89,200
88,300
87,600
86,700
85,200
81,300
76,600
#
Stanford U
Harvard U
Cal Tech
U Penn
Princeton U
Columbia U
Duke U
U Chicago
MIT
Northwestern
Yale U
UCLA
UC Berkeley
Cornell-Endow
Washington U
Emory U
NYU
Brown U
CMU
UC San Diego
Rice U
USC
Georgia Tech
UC Santa Barb
Johns Hopkins 1
U Virginia
UC Davis
Vanderbilt
Rutgers U
UC Irvine
U Michigan
U Rochester
Ohio State
U Illinois
UNC
SUNY StonyBrk
U Maryland
Brandeis U
SUNY Buffalo
U Texas
Case Western
Purdue U
U Wisconsin
U Washington
Indiana U
U Iowa
Mich St U
U Minnesota
Tulane U
U Colorado
U Pittsburgh
U Arizona
Penn State
U Florida
Iowa State
U Kansas
Texas A&M
U Missouri
U Oregon
166,400
154,100
151,900
150,300
148,400
148,000
146,600
140,800
140,500
140,000
137,200
131,600
126,200
125,800
123,100
122,143
116,400
115,400
115,200
115,100
114,600
114,300
113,900
112,900
112,200
110,900
110,100
109,800
109,500
109,500
108,900
108,700
107,600
106,500
104,600
104,000
103,800
103,500
102,700
102,300
99,800
98,800
97,700
97,200
96,200
96,100
95,700
93,500
92,600
92,300
91,400
90,800
90,300
89,900
88,700
87,300
86,500
83,600
79,800
_____________
_____________
Median Increase: 2.29%
UVa Increase: 2.31%
UVa Percentile Rank: 53rd
Median Increase: 2.44%
UVa Increase: 4.33%
UVa Percentile Rank: 57th
#
Stanford U
Cal Tech
Columbia U
Harvard U
U Penn
Princeton U
Duke U
MIT
U Chicago
Northwestern
Yale U
UCLA
UC Berkeley
Washington U
Cornell-Endow
Emory U
Brown U
NYU
USC
Rice U
Vanderbilt
UC San Diego
Georgia Tech
CMU
UC Santa Barb
UC Irvine
UC Davis
Rutgers U
U Rochester
U Illinois
Ohio State
U Michigan
Boston U
U Virginia
UNC
U Maryland
SUNY StonyBrk
U Texas
Brandeis U
SUNY Buffalo
Case Western
Purdue U
U Wisconsin
U Washington
Indiana U
U Minnesota
U Iowa
Mich St U
Penn State
U Colorado
Tulane U
U Arizona
U Pittsburgh
U Florida
Iowa State
U Kansas
Texas A&M
U Missouri
U Oregon
Johns Hopkins 1
173,900
158,300
158,100
157,900
155,300
153,100
151,700
145,700
144,600
142,000
140,542
135,700
130,600
125,400
125,100
124,500
119,300
119,200
117,600
117,400
117,100
116,400
116,400
115,200
113,800
113,400
112,800
112,800
111,600
110,400
110,300
110,200
110,100
109,400
107,100
104,900
104,000
103,600
103,200
101,400
100,900
100,500
100,400
99,700
98,400
98,100
97,100
94,600
94,500
94,400
94,000
91,900
91,700
91,200
90,700
89,200
88,400
86,300
78,400
NA
Rank
4.51%
4.21%
6.82%
2.47%
3.33%
3.17%
3.48%
3.70%
2.70%
1.43%
2.44%
3.12%
3.49%
1.87%
-0.56%
1.93%
3.38%
2.41%
2.89%
2.44%
6.65%
1.13%
2.19%
0.00%
0.80%
3.56%
2.45%
3.01%
2.67%
3.66%
2.51%
1.19%
2.99%
-1.35%
2.39%
1.06%
0.00%
1.27%
-0.29%
-1.27%
1.10%
1.72%
2.76%
2.57%
2.29%
4.92%
1.04%
-1.15%
4.65%
2.28%
1.51%
1.21%
0.33%
1.45%
2.25%
2.18%
2.20%
3.23%
-1.75%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Median Increase: 2.39%
UVa Increase: -1.35%
UVa Percentile Rank:
43%
Notes: All medical faculty are excluded from the above salary averages. Only faculty who are 50% or more instructional are included.
Only U.S. instituions are included above. The University of Toronto and McGill University, although members of AAU, are not included.
In 2010-11, Georgia Tech was added to the list and Nebraska and Syracuse were deleted from the list because of changes in AAU membership. In 2012-13, Boston University was added.
Beginning in 1992, at the University of Virginia, salary increases were given on December 1 of each year. The above averages for UVa
include the December 1 increases each year.
Source: Academe, Bulletin of the American Association of University Professors
1
Data for Johns Hopkins for 2008-09 through 20011-12 were not available so the AAU median increase was used. Since they no longer
participate in the AAUP survey, they have been excluded from the calculations beginning in 2012-13
55
Institutional Assessment and Studies
April 9, 2013
Average Compensation for Full-Time Instructional Faculty at AAU Institutions, 2007-08 to 2012-13
Rank
2007-08
2008-09
2009-10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Stanford U
182,500
U Penn
179,400
Cal Tech
175,900
Harvard U
175,100
Princeton U
161,600
Northwestern
160,000
MIT
158,100
Duke U
155,400
Columbia U
151,700
Yale U
151,500
U Chicago
150,700
UCLA
150,300
UC Berkeley
149,900
Emory U
145,400
Cornell-Endow 141,600
USC
141,400
NYU
140,900
UC San Diego 140,500
Brown U
135,800
UC Santa Barb 133,000
UC Davis
132,400
UC Irvine
132,100
Washington U 131,200
Rutgers U
130,700
CMU
129,700
Rice U
129,100
U Virginia
129,000
Johns Hopkins 127,700
UNC
125,200
Vanderbilt
124,600
U Michigan
122,800
U Maryland
122,600
U Rochester
120,700
Ohio State
119,800
U Illinois
119,100
U Minnesota
118,700
Brandeis U
117,200
Mich St U
117,200
U Arizona
116,000
U Wisconsin
115,700
U Iowa
115,600
SUNY StonyBrk 115,500
SUNY Buffalo
115,200
Case Western 114,800
Purdue U
114,200
Syracuse U
113,800
U Washington 112,000
U Texas
110,800
Indiana U
109,700
U Kansas
107,200
U Pittsburgh
106,200
Iowa State
105,800
U Colorado
104,900
U Florida
104,400
Penn State
104,100
Tulane U
103,500
U Nebraska
102,300
Texas A&M
98,800
U Oregon
98,300
U Missouri
95,800
_____________
Stanford U
191,800
Harvard U
185,000
U Penn
184,500
Cal Tech
182,800
Princeton U
168,500
Northwestern
168,200
Duke U
163,700
MIT
163,200
Columbia U
161,500
Yale U
159,200
U Chicago
158,800
UCLA
155,000
UC Berkeley
154,600
Emory U
153,200
Cornell-Endow 148,100
NYU
146,300
UC San Diego 142,900
USC
141,000
Washington U 140,100
Brown U
139,800
Rice U
137,600
UC Santa Barb 136,900
CMU
136,500
UC Irvine
136,300
UC Davis
135,900
Rutgers U
134,900
Johns Hopkins 132,800
U Virginia
130,300
UNC
130,100
Vanderbilt
129,600
U Minnesota
127,300
U Michigan
127,100
U Maryland
127,100
126,200
U Rochester
Ohio State
124,900
U Wisconsin
123,300
U Illinois
123,100
SUNY Buffalo
122,100
Mich St U
121,600
Brandeis U
121,300
SUNY StonyBrk 121,000
U Iowa
119,800
Case Western 119,200
Purdue U
118,900
Syracuse U
117,000
U Washington 116,100
U Texas
115,500
Indiana U
113,900
U Kansas
112,500
U Colorado
111,300
U Pittsburgh
110,900
U Arizona
110,800
Iowa State
109,900
U Florida
109,200
U Nebraska
109,200
Tulane U
108,800
Penn State
108,100
U Oregon
103,200
Texas A&M
102,500
U Missouri
101,100
_____________
Stanford U
192,200
Harvard U
190,100
Cal Tech
181,800
U Penn
181,100
Columbia U
174,300
Princeton U
172,600
Northwestern
172,500
U Chicago
166,600
MIT
166,000
Duke U
163,600
UCLA
162,300
Yale U
160,000
UC Berkeley
158,500
Emory U
155,100
Cornell-Endow 149,900
NYU
147,800
UC San Diego 145,900
USC
144,500
Washington U 143,100
UC Santa Barb 141,800
Rice U
141,100
UC Irvine
139,900
UC Davis
139,200
CMU
138,200
Rutgers U
137,300
Brown U
136,900
1 134,800
Johns Hopkins
U Virginia
130,800
UNC
129,800
U Maryland
129,200
U Michigan
129,000
Ohio State
128,000
Vanderbilt
127,900
U Minnesota
127,600
127,100
U Rochester
U Wisconsin
125,900
U Illinois
125,700
SUNY StonyBrk 125,300
SUNY Buffalo
125,100
Mich St U
125,100
U Washington 121,600
U Iowa
120,500
Case Western 119,600
Purdue U
119,600
Syracuse U
117,800
Indiana U
117,000
U Texas
116,500
Brandeis U
114,600
U Arizona
113,600
U Pittsburgh
112,600
U Colorado
111,400
Tulane U
111,200
U Florida
110,800
U Nebraska
110,600
U Kansas
109,600
Iowa State
108,400
Penn State
108,400
U Oregon
105,100
Texas A&M
104,900
U Missouri
100,400
_____________
Median Increase: 4.27%
UVa Increase: 3.95%
Va Percentile Rank: 56th
Median Increase: 4.01%
Median Increase: 1.52%
Median Increase: 2.47%
UVa Increase: 1.01%
UVa Increase: 0.38%
UVa Increase: 1.76%
Va Percentile Rank: 54th UVa Percentile Rank: 54th UVa Percentile Rank: 48th
#
2010-11
Stanford U
Harvard U
U Penn
Cal Tech
Columbia U
Princeton U
Northwestern
U Chicago
MIT
UCLA
Yale U
Duke U
UC Berkeley
Emory U
Cornell-Endow
NYU
USC
UC San Diego
Washington U
UC Santa Barb
Rice U
UC Irvine
UC Davis
Rutgers U
Brown U
CMU
Georgia Tech
Johns Hopkins
Vanderbilt
SUNY StonyBrk
31 U Virginia
U Michigan
SUNY Buffalo
U Rochester
UNC
Ohio State
U Wisconsin
U Illinois
U Maryland
U Minnesota
Mich St U
Brandeis U
Case Western
Purdue U
U Washington
U Texas
U Iowa
Indiana U
U Arizona
U Pittsburgh
U Florida
Iowa State
Penn State
U Kansas
U Colorado
Tulane U
U Oregon
Texas A&M
U Missouri
2011-12
197,500
190,600
189,000
182,500
180,600
176,600
176,500
172,800
170,800
168,500
166,000
165,800
164,600
156,500
153,800
150,200
149,800
148,800
146,800
145,300
144,600
141,800
141,300
140,200
139,900
139,500
139,000
138,130
135,100
133,800
133,100
132,800
132,200
131,800
131,000
131,000
130,700
130,100
128,300
128,100
126,300
124,100
123,500
123,100
121,800
121,800
119,800
117,600
116,600
116,100
116,100
115,100
113,500
109,900
109,600
108,000
106,600
101,800
100,000
#
Stanford U
U Penn
Harvard U
Columbia U
Cal Tech
Princeton U
Duke U
Northwestern
U Chicago
MIT
UCLA
UC Berkeley
Yale U
Emory U
Cornell-Endow
UC San Diego
NYU
USC
UC Santa Barb
Washington U
UC Davis
UC Irvine
Brown U
Rice U
Rutgers U
Johns Hopkins 1
CMU
Georgia Tech
U Virginia
U Illinois
Vanderbilt
U Michigan
U Rochester
Ohio State
SUNY StonyBrk
U Maryland
SUNY Buffalo
UNC
Brandeis U
U Minnesota
Mich St U
Case Western
Purdue U
Indiana U
U Iowa
U Wisconsin
U Texas
U Washington
U Arizona
U Florida
Iowa State
U Colorado
Penn State
U Pittsburgh
U Oregon
Tulane U
U Kansas
U Missouri
Texas A&M
_____________
207,500
196,500
195,100
193,700
182,100
180,800
180,300
179,900
177,200
176,800
176,700
169,900
168,700
158,600
157,600
156,000
154,600
153,400
153,200
152,000
149,700
148,900
145,900
144,800
143,900
141,500
141,300
140,100
138,700
137,500
137,300
135,600
135,500
134,500
133,400
133,400
132,100
131,300
131,300
129,600
128,100
127,200
126,000
124,000
123,800
123,500
122,900
121,100
118,500
117,100
115,500
115,500
114,900
114,600
113,700
111,900
110,500
104,100
103,000
_____________
Median Increase: 2.47%
UVa Increase: 4.21%
Va Percentile Rank: 52nd
#
2012-13
Rank
Stanford U
213,400 2.84%
U Penn
205,300 4.48%
Columbia U
204,600 5.63%
Harvard U
200,400 2.72%
Duke U
192,300 6.66%
Cal Tech
190,100 4.39%
Princeton U
186,300 3.04%
MIT
184,100 4.13%
UCLA
183,200 3.68%
Northwestern
182,600 1.50%
U Chicago
181,400 2.37%
UC Berkeley
176,600 3.94%
Yale U
173,100 2.61%
Cornell-Endow 159,000 0.89%
UC San Diego 158,700 1.73%
USC
158,500 3.32%
NYU
158,200 2.33%
UC Santa Barb 155,500 1.50%
Washington U 154,900 1.91%
UC Irvine
154,900 4.03%
UC Davis
154,200 3.01%
Emory U
152,800 -3.66%
Brown U
151,400 3.77%
Rutgers U
151,100 5.00%
Rice U
147,900 2.14%
Boston U
144,100 3.59%
U Illinois
143,400 4.29%
U Rochester
142,100 4.87%
CMU
141,600 0.21%
Georgia Tech
141,600 1.07%
Vanderbilt
139,800 1.82%
U Virginia
138,400 -0.22%
Ohio State
138,100 2.68%
U Michigan
137,700 1.55%
SUNY StonyBrk 135,900 1.87%
U Minnesota
135,300 4.40%
134,400 2.36%
UNC 2
SUNY Buffalo
133,600 1.14%
U Maryland
132,000 -1.05%
Brandeis U
130,300 -0.76%
Case Western 129,000 1.42%
Purdue U
128,800 2.22%
Mich St U
127,300 -0.62%
U Wisconsin
127,000 2.83%
U Iowa
125,300 1.21%
Indiana U
124,700 0.56%
U Texas
124,500 1.30%
2 124,000
2.36%
U Washington
Penn State
120,900 5.22%
U Arizona
119,700 1.01%
U Colorado
119,400 3.38%
Iowa State
118,300 2.42%
U Florida
118,200 0.94%
U Pittsburgh
116,900 2.01%
Tulane U
113,600 1.52%
U Kansas
113,400 2.62%
U Oregon
111,500 -1.93%
U Missouri
109,500 5.19%
Texas A&M
105,200 2.14%
1
Johns Hopkins
_____________
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Median Increase: 2.36%
UVa Increase: -0.22%
UVa Percentile Ranking:
47%
Notes: All medical faculty are excluded from the above salary averages. Only faculty who are 50% or more instructional are included.
Only U.S. instituions are included above. The University of Toronto and McGill University, although members of AAU, are not included.
In 2010-11, Georgia Tech was added to the list and Nebraska and Syracuse were deleted from the list because of changes in AAU membership. In 2012-13, Boston University was added.
Beginning in 1992, at the University of Virginia, salary increases were given on December 1 of each year. The above averages for UVa
include the December 1 increases each year.
Source: Academe, Bulletin of the American Association of University Professors
1
Data for Johns Hopkins for 2008-09 through 20011-12 were not available so the AAU median increase was used. Since they no longer
participate in the AAUP survey, they have been excluded from the calculations beginning in 2012-13
2
Data for UNC and the University of Washington for 20012-13 were not available so the AAU median increase was used.
56
Institutional Assessment and Studies
April 25, 2013
SCHEV Approved Institutional Peer Group Faculty Salaries
for the University of Virginia, 2007-08 to 2012-13
2007-08
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19
21
22
23
24
25
26
U Penn
Duke U
UCLA
UC Berkeley
Cornell U
Emory U
Washington U
USC
UNC
Rutgers U
Vanderbilt U
U Michigan
U Maryland
U Illinois
U Virginia
U Texas
U Arizona
U Washington
U Iowa
U Wisconsin
SUNY Buffalo
U Colorado
U Pittsburgh
Tulane U
U Florida
U Nebraska
Mean
Mean Sal. (excl. UVa)
Mean Incr. (excl. UVa
Std Dev (excl. UVa)
UVa Increase
UVa Percentile
60th %tile Salary
2008-09
2009-10
2010-11
2011-12
92,200
91,900
91,200
90,800
89,300
88,800
84,500
83,300
83,300
82,500
82,200
99,200
U Penn
Duke U
Emory U
Cornell U
UCLA
UC Berkeley
Washington U
Rutgers U
USC
UNC
Vanderbilt U
U Michigan
U Maryland
U Illinois
U Washington
96,384
U Virginia
U Texas
96,100
SUNY Buffalo 94,800
U Iowa
94,100
U Wisconsin
93,400
U Colorado
88,300
U Pittsburgh
87,300
U Arizona
87,200
U Nebraska
85,900
U Florida
85,300
Tulane U
84,100
Mean
102,800
Salary
U Penn
139,900
Duke U
131,400
UCLA
121,800
Emory U
120,600
Cornell U
119,900
UC Berkeley
118,800
Washington U 116,100
USC
107,300
Rutgers U
107,100
UNC
105,500
U Michigan
104,000
U Maryland
103,600
Vanderbilt U
101,500
U Illinois
100,100
SUNY Buffalo 97,400
U Washington
96,500
96,384
U Virginia
U Texas
96,300
U Wisconsin
94,500
U Iowa
94,100
U Arizona
89,000
U Colorado
88,800
U Pittsburgh
87,600
U Nebraska
87,300
Tulane U
86,600
U Florida
85,300
Mean
103,700
Salary
U Penn
144,300
Duke U
133,300
UCLA
126,100
UC Berkeley
123,000
Cornell U
122,800
Emory U
120,800
Washington U 118,900
USC
111,400
Rutgers U
108,900
Vanderbilt U
107,200
U Michigan
106,000
UNC
105,400
U Illinois
103,500
U Maryland
102,700
SUNY Buffalo 102,100
U Texas
100,000
U Wisconsin
97,400
96,384
U Virginia
U Washington
95,300
U Iowa
95,000
U Pittsburgh
90,500
U Arizona
89,800
U Florida
89,400
Tulane U
89,200
U Colorado
86,700
U Nebraska
86,700
Mean
105,900
Salary
U Penn
150,300
Duke U
146,600
UCLA
131,600
UC Berkeley
126,200
Cornell U
125,800
Washington U 123,100
Emory U
122,143
USC
114,300
Vanderbilt U
109,800
Rutgers U
109,500
U Michigan
108,900
U Illinois
106,500
UNC
104,600
U Maryland
103,800
SUNY Buffalo 102,700
U Texas
102,300
U Wisconsin
97,700
U Washington
97,200
96,384
U Virginia
U Iowa
96,100
Tulane U
92,600
U Colorado
92,300
U Pittsburgh
91,400
U Arizona
90,800
U Florida
89,900
U Nebraska
88,100
Mean
108,500
99,328
4.05%
13,593
103,088
3.75%
14,548
104,040
0.95%
14,558
106,256
2.10%
15,224
108,970
2.33%
16,935
111,316
2.07%
17,989
4.00%
41%
102,794
0.00%
32%
106,798
0.00%
30%
107,752
0.00%
26%
110,138
0.00%
23%
113,288
0.00%
20%
115,903
Salary
134,700
125,700
114,000
113,800
113,800
112,400
107,500
103,000
101,900
101,300
101,100
99,000
97,900
97,100
96,384
Salary
139,500
132,700
119,600
118,800
116,800
116,500
114,400
106,800
106,000
106,000
102,900
102,600
102,000
99,700
96,400
2012-13
U Penn
Duke U
UCLA
UC Berkeley
Washington U
Cornell U
Emory U
USC
Vanderbilt U
Rutgers U
U Illinois
U Michigan
UNC
U Maryland
U Texas
SUNY Buffalo
U Wisconsin
U Washington
U Iowa
U Virginia
U Colorado
Tulane U
U Arizona
U Pittsburgh
U Florida
U Nebraska
Mean
Salary
155,300
151,700
135,700
130600
125,400
125,100
124,500
117,600
117,100
112,800
110,400
110,200
107,100
104,900
103,600
101,400
100,400
99,700
97,100
96,384
94,400
94,000
91,900
91,700
91,200
89,100
110,700
% Incr. Rank
3.33%
1
3.48%
2
3.12%
3
3.49%
4
1.87%
5
-0.56%
6
1.93%
7
2.89%
8
6.65%
9
3.01%
10
3.66%
11
1.19%
12
2.39%
13
1.06%
14
1.27%
15
-1.27%
16
2.76%
17
2.57%
18
1.04%
19
0.00%
20
2.28%
21
1.51%
22
1.21%
23
0.33%
24
1.45%
25
1.14%
25
1.99%
Notes:
UVa figures represent the authorized state salary average rather than the actual average. It is intended to exclude all endowment funds.
All medical faculty have been excluded from the above salary averages.
Source: Academe, Bulletin of the American Association of University Professors
Institutional Assessment and Studies, 4/25/13
57
UNIVERSITY OF VIRGINIA
Sponsored Programs Restricted Grant and Contract Activity
July 1, 2012 - June 30, 2013
As shown on the subsequent page, for fiscal year 2013, the University received sponsored
program awards totaling $275.7 million, with $216.6 million in direct research costs and $59.1
million in facilities and administrative indirect support. This is a decrease of 10.3% from fiscal
year 2012, which saw $307.3 million in total awards with $239.5 million for direct research and
$67.8 million for facilities and administrative indirect support.
This decline is primarily attributed to the uncertainty of the federal budget, with
Continuing Resolutions and Sequestration actions substituting for an official federal spending
bill. Federal agencies have been conservative thus far in making awards pending final
resolution, but further declines are almost assured. Federal support has declined across the board
with the University’s largest funding agencies, the Department of Health and Human Services
(DHHS) and the National Science Foundation (NSF) down 15% to 19%, respectively. Funding
from the National Aeronautics and Space Administration (NASA) has declined by 26%, while
Department of Education (DE) awards are down 24%. There was a modest 8% growth from the
Department of Defense (DoD).
In addition, this year’s report reflects the end of funding from the 2009 American
Reinvestment and Recovery Act (ARRA). ARRA awards accounted for $1.2 million in 2013. In
total since fiscal year 2009, the University has received $75.7 million in ARRA funding.
In non-federal awards, funding from industry has declined by 16%, while foundation
support has increased by 12%.
The School of Medicine was awarded 61% of all award dollars, followed by the School
of Engineering and Applied Sciences (17%) and the College of Arts and Sciences (14%). The
remaining 8% was distributed among various areas within the University.
Source: Associate Vice President for Finance
Date: August 22, 2013
58
UNIVERSITY OF VIRGINIA
Sponsored Programs Restricted Grant and Contract Activity
Fiscal Year 2013, as compared to Fiscal Year 2012
(in millions)
School
Dept. of
Health &
Human
Services
Medicine
$
Engineering
Arts & Sciences
Education
Nursing
Law
Other Schools/Depts.
Total FY 2013
% of FY 2013
Total FY 2012
% of FY 2012
% Inc (Dec)
$
$
Dept. of Nat'l Science Dept. Of
Defense
Found.
Energy
Dept. Of
Education
NASA
Other
Federal
Foundation,
Industry, and State and
Total
% of
Total
% of
% Inc
Subcontract
Local
FY 2013 FY 2013 FY 2012 FY 2012 (Dec)
98.5 $
1.9
8.7
0.3
1.0
-
4.2 $
17.6
1.6
-
0.6 $
6.5
9.9
0.2
2.1
0.5 $
0.7
8.0
0.1
$
1.1
4.2
1.0
$
1.2
1.6
-
$
0.7
2.4
0.5
1.1
56.5 $
14.4
4.8
5.3
0.5
0.7
2.3
7.5 $ 167.8
4.0
47.0
0.3
38.4
1.8
12.3
0.2
1.7
0.1
0.8
1.2
7.8
60.8% $ 176.7
17.0%
63.1
13.9%
44.7
4.5%
13.7
0.6%
2.7
0.3%
0.5
2.8%
5.9
110.4 $
40.0%
129.4 $
42.1%
-14.7%
23.4 $
8.5%
21.6 $
7.0%
8.3%
19.3 $
7.0%
23.8 $
7.7%
-18.9%
9.3 $
3.4%
9.5 $
3.1%
-2.1%
6.3 $
2.3%
8.2 $
2.7%
-23.2%
2.8 $
1.0%
3.8 $
1.2%
-26.3%
4.7 $
1.7%
7.5 $
2.4%
-37.3%
84.5 $
30.6%
88.2 $
28.7%
-4.2%
15.1 $ 275.8
5.5%
15.3
5.0%
-1.3%
$ 307.3
57.5%
20.5%
14.5%
4.5%
0.9%
0.2%
1.9%
-5.0%
-25.5%
-14.1%
-10.2%
-37.0%
60.0%
32.2%
-10.3%
Source: Associate Vice President for Finance
Date: August 22, 2013
59
ATTACHMENTS
Six-Year Plans – Part I (2013): 2014-16 through 2018-20
University of Virginia Academic and Financial Plan
ATTACHMENT A
ACADEMIC AND SUPPORT SERVICE STRATEGIES FOR SIX-YEAR PERIOD (2014-2020)
Priority
Ranking
Biennium 2014-2016 (7/1/14-6/30/16)
Biennium 2016-2018 (7/1/16-6/30/18)
Biennium 2018-2020 (7/1/18-6/30/20)
Strategies
Strategies
Cost: Incremental, Savings, Reallocation
Strategies (Short Title)
TJ21
Objectives
2014-2015
Amount
Enrollment Growth
1
Incremental:
E1, E6
Faculty: Compensation
2
D
Staff: Compensation
3
D
Faculty: Start-Up Packages
4
5
Affordable Access: Undergraduate Student
Financial Aid (AccessUVa)
A, E5
8
9
Research & Economic Development: PanUniversity Research Priorities
E8, E10,
E11, E13
Research & Economic Development: Medical
Translational Research
E8
Research & Economic Development: Innovation
Ecosystem
E8, E12
Quality Enhancement: Self-Supporting Programs
10
E13
Student Success: Student-Faculty Engagement
11
D
Student Success: Technology-Enhanced Instruction
12
13
E1, E2, E3,
E4, E6, E7,
E10, E13
Efficiency and Continuous Improvement
14
B, E9, E12
$4,729,600
$7,769,160
$0
$0
$0
$0
$0
$0
$12,234,000
$5,188,000
$25,218,000
Savings:
$5,412,960 Continue Board approved enrollment growth plan.
$0
$10,622,000 Continue Board approved faculty compensation plan. Measure Maintain competitive faculty compensation
salary averages by rank against 20th rank among AAU
$0 institutions and adjust plan accordingly.
$0
$0
$0
$3,466,000
$0
$6,932,000
Incremental:
$9,117,000
$3,915,000
$18,294,000
$0
$0
$0
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$7,000,000
$0
$14,000,000
$0
$0
$0
Savings:
$0
$7,948,000 Staff: Compensation
$0 Faculty: Start-Up Packages
Staff: Compensation
Faculty: Start-Up Packages
$0
Reallocation:
$9,698,076
$0
$22,538,130
Incremental:
see below
see below
see below
$0
$0
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$0
$0
$0
$0 Student Success: Total Advising
$0
$0
$0
$0
Savings:
Complete Board approved enrollment growth in 2018-19.
$0
Reallocation:
$0
see below Affordable Access: Undergraduate Student Financial Aid
(AccessUVa)
$0
Affordable Access: Undergraduate Student Financial Aid
(AccessUVa)
Student Success: Total Advising
$0
$0
$0
$0
Incremental:
$0
$0
$0
Savings:
$0
$0
$0
$0 Research & Economic Development: Pan-University Research Research & Economic Development: Pan-University Research
Priorities
Priorities
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$4,000,000
$0
$4,000,000
$0
$0
$0
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$8,000,000
$0
$8,000,000
$0
$0
$0
Savings:
Savings:
$0 Research & Economic Development: Medical Translational
Research
$0 Research & Economic Development: Innovation Ecosystem
$0
$0
$0
Incremental:
$704,166
$704,166
$358,116
$0
$0
$0
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$0
$0
$0
$0 Student Success: Student-Faculty Engagement
Savings:
$0
$0
$0
$0
Reallocation:
$0
$0
$0
$0
Incremental:
$0
$0
$0
$0 Student Success: Technology-Enhanced Instruction
$0
$0
$0
$0
Savings:
$0
$0
$0
Incremental:
$129,323
$129,323
$240,243
$0
$0
$0
Reallocation:
$42,977
$42,977
$42,977
Incremental:
$0
$0
$0
-$8,818,845
$0
-$17,637,689
$0
$0
$0
$0
$0
Savings:
Reallocation:
Research & Economic Development: Innovation Ecosystem
$0
$358,116 Quality Enhancement: Self-Supporting Programs
Reallocation:
Savings:
Research & Economic Development: Medical Translational
Research
$0
Reallocation:
C, E1, E6, E10 Savings:
Institutional Collaboration: The Virginia Community
College System (VCCS)
$5,804,517
Incremental:
D, E3, E5, E6,
Savings:
E8, E10, E12
Reallocation:
6
Within Increase
Reallocation:
D, E1, E6, E8 Savings:
Student Success: Total Advising
7
Savings:
2015-2016
Amount
Within Increase
Quality Enhancement: Self-Supporting Programs
Student Success: Student-Faculty Engagement
Student Success: Technology-Enhanced Instruction
$0
$240,243 Institutional Collaboration: The Virginia Community College
System (VCCS)
$0
Institutional Collaboration: The Virginia Community College
System (VCCS)
$42,977
$0 Efficiency and Continuous Improvement
Attachment A - 1
Efficiency and Continuous Improvement
Six-Year Plans – Part I (2013): 2014-16 through 2018-20
University of Virginia Academic and Financial Plan
ACADEMIC AND SUPPORT SERVICE STRATEGIES FOR SIX-YEAR PERIOD (2014-2020)
Biennium 2014-2016 (7/1/14-6/30/16)
Priority
Ranking
TJ21
Objectives
Strategies (Short Title)
2014-2015
Amount
15
Biennium 2016-2018 (7/1/16-6/30/18)
Biennium 2018-2020 (7/1/18-6/30/20)
Strategies
Strategies
Cost: Incremental, Savings, Reallocation
2015-2016
Amount
Within Increase
Within Increase
Incremental:
$0
$0
$0
Savings:
$0
$0
$0
$0 Research & Economic Development: Southwest Virginia
Economic Development Partnership (Appalachian Prosperity
$0 Project)
Reallocation:
$0
$0
$0
$0
Incremental (Included in Financial Plan line 61)
$46,989,006
$14,666,089
Savings
-$8,818,845
$0
Reallocation
$13,207,053
$42,977
Research & Economic Development: Southwest
Virginia Economic Development Partnership
(Appalachian Prosperity Project)
E13
Total 2014-2016 Costs
$77,879,518
$24,581,319
-$17,637,689
$29,513,107
$0
$42,977
Six-Year Financial Plan for Educational and General Programs, Incremental Operating Budget Need
2014-2016 Biennium
(Assuming No Additional General Fund)
Items
Amount
3
Total Incremental Cost from Academic Plan
2
Increase Faculty Salaries
4
Faculty Salary Increase Rate
2014-2015
Within Increase
Amount
2015-2016
Within Increase
$24,581,319
$46,989,006
$14,666,089
$77,879,518
$0
$0
$0
$0
4.75%
4.75%
4.75%
4.75%
3
$0
$0
$0
$0
3
16.00
0.00
33.00
0.00
Increase Number of Full-Time Faculty ($)
Increase Number of Full-Time Faculty (FTE)
3
Increase Number of Part-Time Faculty ($)
3
Increase Number of Part-Time Faculty (FTE)
Increase Number of Support Staff ($)
Increase Number of Support Staff (FTE)
Library Enhancement ($)
Library Enhancement (FTE)
Technology Enhancement ($)
Technology Enhancement (FTE)
O&M for New Facilities ($)
O&M for New Facilities (FTE)
Utility Cost Increase
NGF share of state authorized salary increase/bonus
Fringe/health insurance benefits increase
VRS increase
Additional In-State Student Financial Aid From Tuition Revenue - UGrad + Grad
$0
$0
$0
$0
0.00
0.00
0.00
0.00
$0
$0
$0
$0
0.00
0.00
0.00
0.00
$875,000
$875,000
$1,750,000
$1,750,000
2.00
2.00
4.00
4.00
$900,000
$900,000
$1,200,000
$1,200,000
4.00
4.00
4.00
4.00
$920,477
$461,230
$1,762,653
$466,978
2.70
0.00
2.70
0.00
$1,142,000
$1,142,000
$2,318,000
$2,318,000
$0
$0
$0
$0
$13,873,000
$5,270,793
$19,150,000
$7,323,421
$3,300,000
$1,253,775
$3,300,000
$1,262,000
$751,000
$751,000
$2,216,000
$2,216,000
$1,865,000
$1,865,000
$4,853,000
$4,853,000
$100,000
$100,000
$200,000
$200,000
$1,500,000
$1,500,000
$3,000,000
$3,000,000
$72,215,483
$28,784,886
$117,629,171
$49,170,718
Others (Specify, insert lines below)
Additional Out-of-State Student Financial Aid From Tuition Revenue - UGrad +
Grad
Unavoidable contractual costs
Deferred Maintenance
Total Additional Funding Need
Attachment A - 2
Research & Economic Development: Southwest Virginia
Economic Development Partnership (Appalachian Prosperity
Project)
Six-Year Plans - Part I (2013): 2014-16 through 2018-20
University of Virginia
Six-Year Financial Plan for Tuition and Fee Increases and Nongeneral Fund Revenue Estimates
2012-2013 (Actual)
Items
Student
Charge
2013-2014 (Estimated)
Total
Revenue
Student
Charge
Rate
Increase
2014-2015 (Planned)
Total
Revenue
Student
Charge
Rate
Increase
2015-2016 (Planned)
Total
Revenue
Student
Charge
Rate
Increase
Total
Revenue
E&G Programs
Undergraduate, In-State *
$10,066 $110,045,000
$10,460
3.9% $118,324,000
$10,931
4.5% $127,300,000
$11,423
4.5% $137,071,000
Undergraduate, Out-of-State *
$36,078 $167,775,000
$37,846
4.9% $176,274,000
$39,549
4.5% $185,577,000
$41,329
4.5% $195,469,000
Graduate, In-State
$13,722
$34,874,000
$14,262
3.9%
$35,941,000
$14,902
4.5%
$37,301,000
$15,571
4.5%
Graduate, Out-of-State
$23,728
$62,792,000
$24,268
2.3%
$70,482,000
$24,904
2.6%
$72,454,000
$25,557
2.6%
$74,484,000
Law, In-State
$44,420
$14,980,000
$45,862
3.2%
$14,882,000
$47,656
3.9%
$15,473,000
$49,511
3.9%
$16,087,000
Law, Out-of-State
$49,420
$38,623,000
$50,862
2.9%
$39,568,000
$52,656
3.5%
$40,965,000
$54,511
3.5%
$42,411,000
Medicine, In-State
$41,226
$13,747,000
$42,776
3.8%
$13,671,000
$43,627
2.0%
$14,012,000
$44,495
2.0%
$14,337,000
Medicine, Out-of-State
$38,714,000
$51,330
$13,836,000
$53,238
3.7%
$16,365,000
$54,292
2.0%
$16,748,000
$55,366
2.0%
$17,119,000
Dentistry, In-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
$0
Dentistry, Out-of-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
$0
PharmD, In-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
$0
PharmD, Out-of-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
$0
Veterinary Medicine, In-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
$0
Veterinary Medicine, Out-of-State
$0
$0
$0
%
$0
$0
%
$0
$0
%
Other NGF
$0
$34,296,000
$34,428,000
$34,671,000
$34,922,000
Total E&G Revenue - Gross
$490,968,000
$519,935,000
$544,501,000
$570,614,000
Total E&G Revenue - Net of Financial Aid
$428,822,000
$455,150,000
$475,125,000
$496,666,000
Auxiliary Program
Mandatory Non-E&G Fees
Undergraduate
$1,940
$1,998
3.0%
$2,041
2.2%
$2,069
1.4%
Graduate
$1,940
$1,998
3.0%
$2,041
2.2%
$2,069
1.4%
Law
$1,980
$2,038
2.9%
$2,081
2.1%
$2,109
1.3%
Medicine
$1,992
$2,050
2.9%
$2,093
2.1%
$2,121
1.3%
Dentistry
$0
$0
%
$0
%
$0
%
PharmD
$0
$0
%
$0
%
$0
%
Veterinary Medicine
$0
$0
%
$0
%
$0
%
Total Auxiliary Revenue (ALL including room and board)
$192,057,000
$200,415,000
$206,427,000
$210,556,000
Total Tuition and Fees
Undergraduate, In-State
$12,006
$12,458
3.8%
$12,972
4.1%
$13,492
4.0%
Undergraduate, Out-of-State
$38,018
$39,844
4.8%
$41,590
4.4%
$43,398
4.3%
Graduate, In-State
$15,662
$16,260
3.8%
$16,943
4.2%
$17,640
4.1%
Graduate, Out-of-State
$25,668
$26,266
2.3%
$26,945
2.6%
$27,626
2.5%
Law, In-State
$46,400
$47,900
3.2%
$49,737
3.8%
$51,620
3.8%
Law, Out-of-State
$51,400
$52,900
2.9%
$54,737
3.5%
$56,620
3.4%
Medicine, In-State
$43,218
$44,826
3.7%
$45,720
2.0%
$46,616
2.0%
Medicine, Out-of-State
$53,322
$55,288
3.7%
$56,385
2.0%
$57,487
2.0%
Dentistry, In-State
$0
$0
%
$0
%
$0
%
Dentistry, Out-of-State
$0
$0
%
$0
%
$0
%
PharmD, In-State
$0
$0
%
$0
%
$0
%
PharmD, Out-of-State
$0
$0
%
$0
%
$0
%
Veterinary Medicine, In-State
$0
$0
%
$0
%
$0
%
Veterinary Medicine, Out-of-State
$0
$0
%
$0
%
$0
%
Attachment A - 3
Student Financial Aid (Program 108)
$62,146,000
$64,785,000
$69,376,000
$73,948,000
Sponsored Programs (Program 110)
$286,409,000
$277,578,000
$274,959,000
$276,826,000
Unique Military Activities
$0
$0
$0
$0
Workforce Development
$0
$0
$0
$0
Other (Specify)
$0
$0
$0
$0
* THE FINANCIAL PLAN IS BUILT ON PRELIMINARY GUIDANCE FROM THE FINANCE COMMITTEE OF THE BOARD OF VISITORS AND REFLECTS FY15 AND FY16
UNDERGRADUATE TUITION INCREASES THAT WILL FALL WITHIN THE RANGE OF 3.5% TO 4.5%. THE ADMINISTRATION AND THE
BOARD WILL WORK OVER THE NEXT YEAR TO DEVELOP A SUSTAINABLE FINANCIAL MODEL FOR THE UNIVERSITY.
Attachment A - 4
Six-Year Plans - Part I (2013): 2014-16 through 2018-20
University of Virginia
FINANCIAL AID PLAN
Note: If you do not have actual amounts for Tuition Revenue for Financial Aid by student category, please provide
an estimate. If values are not distributed for Tuition Revenue for Financial Aid , a distribution may be calculated for
your institution.
Allocation of Tuition Revenue Used for Student Financial
2011-12 (Actual)
T&F Used for Financial Aid
Undergraduate, In-State
Undergraduate, Out-of-State
Graduate, In-State
Graduate, Out-of-State
First Professional, In-State
First Professional, Out-of-State
Total
In-State Sub-Total
Gross Tuition
Revenue
$103,156,000
$155,904,000
$35,642,000
$62,428,000
$28,361,000
$47,873,000
$433,364,000
$167,159,000
Tuition Revenue
for Financial Aid
(Program 108)
% Revenue for
Financial Aid
$15,437,000
$22,898,000
$6,304,000
$25,731,000
$2,206,000
$5,113,000
$77,689,000
$23,947,000
Distribution of
Financial Aid
$15,437,000
$22,898,000
$6,304,000
$25,731,000
$2,206,000
$5,113,000
$77,689,000
$23,947,000
See Note A
See Note A
See Note B
See Note B
See Note B
See Note B
2012-13 (Estimated)
T&F Used for Financial Aid
Undergraduate, In-State
Undergraduate, Out-of-State
Graduate, In-State
Graduate, Out-of-State
First Professional, In-State
First Professional, Out-of-State
Total
Total from Finance-T&F worksheet
In-State Sub-Total
Gross Tuition
Revenue
$110,045,000
$167,775,000
$34,874,000
$62,792,000
$28,727,000
$52,459,000
$456,672,000
$490,968,000
$173,646,000
Tuition Revenue
for Financial Aid
(Program 108)
$16,932,000
$23,231,000
$6,003,000
$24,909,000
$2,312,000
$6,931,000
$80,318,000
$62,146,000
$25,247,000
Attachment A - 5
% Revenue for
Financial Aid
Distribution of
Financial Aid
$16,932,000
$23,231,000
$6,003,000
$24,909,000
$2,312,000
$6,931,000
$80,318,000
$25,247,000
See Note A
See Note A
See Note B
See Note B
See Note B
See Note B
2013-14 (Planned)
T&F Used for Financial Aid
Undergraduate, In-State
Undergraduate, Out-of-State
Graduate, In-State
Graduate, Out-of-State
First Professional, In-State
First Professional, Out-of-State
Total
Total from Finance-T&F worksheet
In-State Sub-Total
Additional In-State
Gross Tuition
Revenue
Tuition Revenue
for Financial Aid
(Program 108)
$118,324,000
$176,274,000
$35,941,000
$70,482,000
$28,553,000
$55,933,000
$485,507,000
$519,935,000
$182,818,000
$9,172,000
% Revenue for
Financial Aid
$17,800,000
$24,900,000
$6,239,000
$25,476,000
$2,393,000
$7,161,000
$83,969,000
$64,785,000
$26,432,000
$1,185,000
Distribution of
Financial Aid
$17,800,000
$24,900,000
$6,239,000
$25,476,000
$2,393,000
$7,161,000
$83,969,000
See Note A
See Note A
See Note B
See Note B
See Note B
See Note B
$26,432,000
$1,185,000
2014-15 (Planned)
T&F Used for Financial Aid
Undergraduate, In-State
Undergraduate, Out-of-State
Graduate, In-State
Graduate, Out-of-State
First Professional, In-State
First Professional, Out-of-State
Total
Total from Finance-T&F worksheet
In-State Sub-Total
Additional In-State
Additional In-State from Financial Plan
Gross Tuition
Revenue
$127,300,000
$185,577,000
$37,301,000
$72,454,000
$29,485,000
$57,713,000
$509,830,000
$544,501,000
$194,086,000
$11,268,000
Tuition Revenue
for Financial Aid
(Program 108)
$18,200,000
$25,900,000
$6,519,000
$26,144,000
$2,464,000
$7,358,000
$86,585,000
$69,376,000
$27,183,000
$751,000
$751,000
Attachment A - 6
% Revenue for
Financial Aid
Distribution of
Financial Aid
$18,200,000
$25,900,000
$6,519,000
$26,144,000
$2,464,000
$7,358,000
$86,585,000
$27,183,000
$751,000
See Note A
See Note A
See Note B
See Note B
See Note B
See Note B
2015-16 (Planned)
T&F Used for Financial Aid
Undergraduate, In-State
Undergraduate, Out-of-State
Graduate, In-State
Graduate, Out-of-State
First Professional, In-State
First Professional, Out-of-State
Total
Total from Finance-T&F worksheet
In-State Sub-Total
Additional In-State
Additional In-State from Financial Plan
Gross Tuition
Revenue
$137,071,000
$195,469,000
$38,714,000
$74,484,000
$30,424,000
$59,530,000
$535,692,000
$570,614,000
$206,209,000
$12,123,000
Tuition Revenue
for Financial Aid
(Program 108)
$19,300,000
$28,000,000
$6,812,000
$26,830,000
$2,536,000
$7,560,000
$91,038,000
$73,948,000
$28,648,000
$1,465,000
$2,216,000
% Revenue for
Financial Aid
Distribution of
Financial Aid
$19,300,000
$28,000,000
$6,812,000
$26,830,000
$2,536,000
$7,560,000
$91,038,000
See Note A
See Note A
See Note B
See Note B
See Note B
See Note B
$28,648,000
$1,465,000
Note A: Tuition revenue is used for financial aid; however, the University does not separately track a tuition dollar paid to where it is expended. All undergraduate tuition
revenues are collected into a 0300 revenue project, then the amount required for financial aid is transferred to program 108. The University is committed to the principle
that in-state undergraduates will pay for in-state undergraduate financial aid, while out-of-state undergraduates will pay for out-of-state undergraduate financial aid.
Note B: The University does not separately track a tuition dollar paid to where it is expended. In addition, financial aid for graduate students is not awarded strictly on
the basis of need (although most all graduate students are needy since they are normally independent students), but rather it is packaged so as to attract the very best
students. Graduate teaching assistants (GTA) and graduate research assistants (GRA) who perform work for the University receive financial support from tuition. For
GTAs (regardless of residency), financial aid from tuition covers 100% of the cost of in-state tuition and fees. For GRAs (regardless of residency), the underlying grant
covers 100% of the cost of in-state tuition and fees. For all out-of-state GTAs and GRAs, financial aid from tuition covers the differential between in-state T&F and outof-state T&F. Gross tuition revenue from graduate students is distorted by the inclusion of Graduate Business (Darden) and graduate programs in the McIntire School
of Commerce, which are high tuition programs with virtually no tuition-funded financial aid.
Attachment A - 7
Six-Year Plans - Part I (2013): 2014-16 through 2018-20
University of Virginia
Foregone Tuition Revenue As A Result of Tuition Waivers (See references at bottom of tables for waiver programs)
Educational and General Programs
The values entered for 2011-12 must match those submitted on the SCHEV S1/S2.
2011-12 (Actual from S1/S2)
In-State
Out-of-State
Program
Total
Undergraduate
Graduate
Total
Undergraduate
Graduate
Total
$0
$0
$0
Unfunded Scholarships
$0
$0
$0
$0
Foreign exchange student waivers
$0
$0
$0
$0
$0
$0
$0
Virginia's military dependent waivers
$0
$0
$0
$0
$249,329
$249,329
$249,329
Virginia's military member waivers
$0
$0
$0
$0
$82,538
$82,538
$82,538
$0
$0
$0
$0
$0
$0
$0
Special arrangement contracts
$0
$0
$0
$0
$0
$0
$0
Academic Common Market
$0
$0
$0
$0
$0
$0
$0
Geographic waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers associated with in-/out-of-state differential
$0
$0
$0
$96,408
$117,476
$213,884
$213,884
$72,293
$28,881
$101,174
$0
$0
$0
$101,174
$0
$0
$0
$0
$0
$0
$0
$101,997
$38,945
$140,942
$0
$0
$0
$140,942
Employee Waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers of tuition/fees student would normally be charged
$0
$0
$0
$0
$0
$0
$0
$174,290
$67,826
$242,116
$96,408
$449,343
$545,751
$787,867
Virginia's military veteran waivers
Federal military member and dependent waivers
Virginia provision for other state's National Guard duty
Senior Citizen's Tuition and Fee Waivers
Certain Public Safety Personnel Child/Spouse Waivers
Virginia Military Survivors & Dependents Education Program
Total
Attachment A - 8
2012-13 (Estimated)
In-State
Out-of-State
Program
Total
Undergraduate
Graduate
Total
Undergraduate
Graduate
Total
Unfunded Scholarships
$0
$0
$0
$0
Foreign exchange student waivers
$0
$0
$0
$0
$0
$0
$0
Virginia's military dependent waivers
$0
$0
$0
$0
$211,930
$211,930
$211,930
Virginia's military member waivers
$0
$0
$0
$0
$70,157
$70,157
$70,157
Federal military member and dependent waivers
$0
$0
$0
$0
$0
$0
$0
Virginia provision for other state's National Guard duty
$0
$0
$0
$0
$0
$0
$0
Special arrangement contracts
$0
$0
$0
$0
$0
$0
$0
Academic Common Market
$0
$0
$0
$0
$0
$0
$0
Geographic waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers associated with in-/out-of-state differential
$0
$0
$0
$20,000
$121,000
$141,000
$141,000
$83,137
$28,303
$111,440
$0
$0
$0
$111,440
$0
$0
$0
Virginia's military veteran waivers
Senior Citizen's Tuition and Fee Waivers
$0
$0
$0
$0
$0
$0
$0
$82,624
$37,384
$120,008
$0
$0
$0
$120,008
Employee Waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers of tuition/fees student would normally be charged
$0
$0
$0
$0
$0
$0
$0
$165,761
$65,687
$231,448
$20,000
$403,087
$423,087
$654,535
Certain Public Safety Personnel Child/Spouse Waivers
Virginia Military Survivors & Dependents Education Program
Total
Attachment A - 9
2013-14 (Planned)
In-State
Out-of-State
Program
Total
Undergraduate
Graduate
Total
Undergraduate
Graduate
Total
Unfunded Scholarships
$0
$0
$0
$0
$0
$0
$0
Foreign exchange student waivers
$0
$0
$0
$0
$0
$0
$0
Virginia's military dependent waivers
$0
$0
$0
$0
$212,000
$212,000
$212,000
Virginia's military member waivers
$0
$0
$0
$0
$70,000
$70,000
$70,000
Virginia's military veteran waivers
$0
$0
$0
$0
$0
$0
$0
Federal military member and dependent waivers
$0
$0
$0
$0
$0
$0
$0
Virginia provision for other state's National Guard duty
$0
$0
$0
$0
$0
$0
$0
Special arrangement contracts
$0
$0
$0
$0
$0
$0
$0
Academic Common Market
$0
$0
$0
$0
$0
$0
$0
Geographic waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers associated with in-/out-of-state differential
$0
$0
$0
$20,000
$121,000
$141,000
$141,000
$87,000
$30,000
$117,000
$0
$0
$0
$117,000
$0
$0
$0
$0
$0
$0
$0
$83,000
$37,000
$120,000
$0
$0
$0
$120,000
Employee Waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers of tuition/fees student would normally be charged
$0
$0
$0
$0
$0
$0
$0
$170,000
$67,000
$237,000
$20,000
$403,000
$423,000
$660,000
Senior Citizen's Tuition and Fee Waivers
Certain Public Safety Personnel Child/Spouse Waivers
Virginia Military Survivors & Dependents Education Program
Total
Attachment A - 10
2014-15 (Planned)
In-State
Out-of-State
Program
Total
Undergraduate
Graduate
Total
Undergraduate
Graduate
Total
Unfunded Scholarships
$0
$0
$0
$0
Foreign exchange student waivers
$0
$0
$0
$0
$0
$0
$0
Virginia's military dependent waivers
$0
$0
$0
$0
$212,000
$212,000
$212,000
Virginia's military member waivers
$0
$0
$0
$0
$70,000
$70,000
$70,000
Virginia's military veteran waivers
$0
$0
$0
$0
$0
$0
$0
Federal military member and dependent waivers
$0
$0
$0
$0
$0
$0
$0
Virginia provision for other state's National Guard duty
$0
$0
$0
$0
$0
$0
$0
Special arrangement contracts
$0
$0
$0
$0
$0
$0
$0
Academic Common Market
$0
$0
$0
$0
$0
$0
$0
Geographic waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers associated with in-/out-of-state differential
$0
$0
$0
$20,400
$123,000
$143,400
$143,400
$91,000
$31,000
$122,000
$0
$0
$0
$122,000
Senior Citizen's Tuition and Fee Waivers
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$83,000
$37,000
$120,000
$0
$0
$0
$120,000
Employee Waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers of tuition/fees student would normally be charged
$0
$0
$0
$0
$0
$0
$0
$174,000
$68,000
$242,000
$20,400
$405,000
$425,400
$667,400
Certain Public Safety Personnel Child/Spouse Waivers
Virginia Military Survivors & Dependents Education Program
Total
Attachment A - 11
2015-16 (Planned)
In-State
Out-of-State
Program
Total
Undergraduate
Graduate
Total
Undergraduate
Graduate
Total
$0
$0
$0
$0
Foreign exchange student waivers
$0
$0
$0
$0
$0
$0
$0
Virginia's military dependent waivers
$0
$0
$0
$0
$212,000
$212,000
$212,000
Virginia's military member waivers
$0
$0
$0
$0
$70,000
$70,000
$70,000
Virginia's military veteran waivers
$0
$0
$0
$0
$0
$0
$0
Federal military member and dependent waivers
$0
$0
$0
$0
$0
$0
$0
Virginia provision for other state's National Guard duty
$0
$0
$0
$0
$0
$0
$0
Special arrangement contracts
$0
$0
$0
$0
$0
$0
$0
Academic Common Market
$0
$0
$0
$0
$0
$0
$0
Geographic waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers associated with in-/out-of-state differential
$0
$0
$0
$21,000
$125,000
$146,000
$146,000
$95,000
$32,000
$127,000
$0
$0
$0
$127,000
Senior Citizen's Tuition and Fee Waivers
$0
$0
$0
Unfunded Scholarships
$0
$0
$0
$0
$0
$0
$0
$83,000
$37,000
$120,000
$0
$0
$0
$120,000
Employee Waivers
$0
$0
$0
$0
$0
$0
$0
Other waivers of tuition/fees student would normally be charged
$0
$0
$0
$0
$0
$0
$0
$178,000
$69,000
$247,000
$21,000
$407,000
$428,000
$675,000
Certain Public Safety Personnel Child/Spouse Waivers
Virginia Military Survivors & Dependents Education Program
Total
Attachment A - 12
Program
FA File Field
Authorization
Unfunded Scholarships
TUIWAIV, IN-1
Code of Virginia § 23-31
Foreign exchange student waivers
TUITION=H
Code of Virginia § 23-7.4:2 C 2
Virginia's military dependent waivers
TUITION=B
Code of Virginia § 23-7.4 E
Virginia's military member waivers
TUITION=M
Code of Virginia § 23-7.4:2 G
Virginia's military veteran waivers
TUITION=U
Code of Virginia § 23-7.4:2 H
Federal military member and dependent waivers
TUITION=R
Federal Higher Education Opportunity Act (Sec. 114)
Virginia provision for other state's National Guard duty
TUITION=T
Code of Virginia § 23-7.4:2 B
Special arrangement contracts
TUITION=I
Code of Virginia § 23-7.4:2 F
Academic Common Market
TUITION=C
Code of Virginia § 23-7.4:2 C 1
Virginia Community College System
TUITION=D
Code of Virginia § 23-7.4:2 D
University of Virginia's College at Wise
TUITION=E
Code of Virginia § 23-7.4:2 E
Old Dominion University's TELETECHNET sites/higher education centers; Radford’s Virginia Educators program
TUITION=P
Appropriation Act (ODU)
VCCS dual enrollment agreement
TUITION=F
Code of Virginia § 23-7.4:2 C 3
Nonresident employed full time in Virginia provision
TUITION=G
Code of Virginia § 23-7.4:2 A
One-year grace period for dependent whose parent or spouse abandons Virginia domicile
TUITION=L
Code of Virginia § 23-7.4 B
Graduate student employed at a contract rate of $4K+
TUITION=Q
Appropriation Act § 4-2.01 b 6
Senior Citizen's Tuition and Fee Waivers
TUIWAIV, IN-1
Code of Virginia § 23-38.54 et seq.
Certain Public Safety Personnel Child/Spouse Waivers
TUIWAIV, IN-1
Code of Virginia § 23-7.4:1 B
Virginia Military Survivors & Dependents Education Program
MSDTFW, IN-7
Code of Virginia § 23-7.4:1 A
Other waivers of tuition/fees student would normally be charged
TUIWAIV, IN-1
Appropriation Act § 4-2.01 b 9
Geographic waivers
Other waivers associated with in-/out-of-state differential
Attachment A - 13
PART II University of Virginia A. Institutional Mission The University of Virginia’s mission is reflected in its Statement of Purpose and Goals. As part of its ongoing strategic planning process, the University anticipates revising its mission statement. The University anticipates submitting revisions to SCHEV during fall 2013 for review and approval. Purpose The central purpose of the University of Virginia is to enrich the mind by stimulating and sustaining a spirit of free inquiry directed to understanding the nature of the universe and the role of mankind in it. Activities designed to quicken, discipline, and enlarge the intellectual and creative capacities, as well as the aesthetic and ethical awareness, of the members of the University and to record, preserve, and disseminate the results of intellectual discovery and creative endeavor serve this purpose. In fulfilling it, the University places the highest priority on achieving eminence as a center of higher learning. Goals The University of Virginia seeks to achieve its central purpose through the pursuit of the following specific goals:  To offer instruction of the highest quality to undergraduates from all walks of life, not only by transmitting established knowledge and skills, but by fostering in students the habits of mind and character required to develop a generous receptivity to new ideas, from whatever source; a disposition for applying the most rigorous criticism to all ideas and institutions, whether old or new; an ability to test hypotheses and re‐interpret human experience; and a desire to engage in a lifetime of learning.  To sustain liberal education as the central intellectual concern of the University, not only in the curricula of the College of Arts and Sciences, but also as a foundation for the professional undergraduate programs.  To educate men and women for the professions in certain undergraduate and in graduate programs leading to degrees in the School of Architecture, Business Administration, Commerce, Education, Engineering and Applied Science, Law, Medicine, and Nursing.  To lead in the advancement and application of knowledge through graduate study and research and to disseminate the results among scholars and the general public.  To attract and retain eminent faculty in order to provide the highest quality of instruction and leadership in research.  To seek the ablest and most promising students, within the Commonwealth and without; and, in keeping with the intentions of Thomas Jefferson, to attend to their total development and well‐
being; and to provide appropriate intellectual, athletic, and social programs.  To strive for diversity in the student body and in the faculty and to promote international exchange of scholars and students.  To provide for students and faculty an atmosphere conducive to fellowship and understanding and to their constructive participation in the affairs of the University and the community at large. Attachment A - 14






To expand educational opportunities for persons with special challenges such as minority status, physical disability, ethnic heritage, or insufficient financial resources. To engage in research in the medical sciences and to provide innovative leadership in health care and medical services in the local community, the Commonwealth, and the nation. To offer to the local community, the Commonwealth of Virginia, and the nation the various kinds of public service and intellectual and cultural activities which are consonant with the purposes of the University. To provide continuing education programs of the highest quality to the Commonwealth and the nation. To cooperate with and assist other colleges, educational institutions, and agencies, especially in the Commonwealth of Virginia, by making available to them the facilities of the University and the experience and counsel of its members so as to contribute to education in the Commonwealth and beyond. To establish new programs, schools, and degrees, and to undertake such research as the needs of the Commonwealth of Virginia and the nation may require. Attachment A - 15
B. Strategies The University of Virginia is in the midst of a strategic planning process, with a final strategic plan scheduled to be considered by the Board of Visitors, at the same time as the Six‐Year Plan, in September 2013. As of July 1, 2013, the draft strategic plan includes six pillars for the University. The six pillars and a description of each are included below, followed by descriptions of Six‐Year Plan strategies. While many Six‐Year Plan strategies will not be included in the final strategic plan – which, by nature, will encompass a broader view of the University – the strategies include representative initiatives of the University that further the goals of the Higher Education Opportunity Act (HEOA) and the pillars of the draft strategic plan. DRAFT STRATEGIC PLAN Pillar #1 – Enrich and Strengthen the University’s Distinctive Residential Culture Among other initiatives, this plan will target for investment programs that reinforce its cohesive yet increasingly diverse academic community, encourage frequent faculty‐student interactions, promote student self‐governance, and emphasize leadership, student research, experiential learning, and public service. It also will concentrate on areas such as advising that fall short of student expectations and support a virtual residential experience that includes non‐traditional adult students and alumni. Pillar #2 – Provide Educational Experiences that Deliver New Levels of Student Engagement The University will enhance a broad range of high‐impact educational experiences that encourage students to internalize knowledge and make it their own. This may include conducting meaningful research with faculty members, service learning, entrepreneurial experiences, internships, and learning to see the world through a global lens. Pillar #3 — Assemble and Support a Distinguishing Faculty A high‐quality faculty characterizes dynamic institutions and is essential to the missions of teaching, research, patient care, and public service. It is the starting point for a virtuous cycle, fueled by innovation, that leads to better undergraduate and graduate students, increased research funding, and more engaged and committed alumni. Accordingly, the generational turnover in faculty, while providing a remarkable opportunity to remake the University, must be managed with utmost care. The strategic plan will provide a framework for assembling a distinctive faculty best suited to fulfill the University’s aspirations as a collegiate research university and equipped to use its scale for advantage. This is a faculty that welcomes collaboration and that combines a commitment to innovation in education with intellectual leadership. Pillar #4 – Strengthen the University’s Capacity to Advance Knowledge and Serve the Public Through Creativity, Scholarship, and Research The University will identify areas where its strengths intersect with new disciplines and technologies. This is essential in an age where solving the great challenges requires multiple perspectives. An important priority will be to leverage current talent and new faculty hiring opportunities to focus research strategically and build interdisciplinary scholarship and research that will contribute to the Attachment A - 16
important issues facing the Commonwealth, the nation, and the world. The University will create high‐
potential cross‐Grounds initiatives in areas of critical intellectual significance, particularly where they overlap with the needs of the Commonwealth; engage corporate, government, and academic partners in these efforts; and develop a new process for periodic sunset review of all centers, institutes, and other units. Pillar #5 – Make Ethical Leadership and Leadership Preparation a Common Purpose Uniting the University Community The University will elevate its efforts to promote leadership development among students, faculty, and staff. The ability of faculty and staff to create innovative research and educational programs and to guide the University through a difficult period for higher education will be essential not only for its continued preeminence, but also for its ongoing ability to serve the Commonwealth. The University also will share its growing proficiency in leadership preparation. Pillar #6 – Steward the University’s Resources to Promote Academic Excellence and Affordable Access Academic excellence is possible only if it rests on a solid foundation of continuous improvement and organizational excellence. Organizational excellence in the context of academic excellence, however, is far more than cost‐cutting. It entails the most efficient allocation and investment of resources so that the University can continue to offer a distinctive educational experience – residential in nature and global in outlook, uniting the best students and faculty, harnessing emerging technologies, and ensuring accessibility and affordability for all qualified students. To achieve these ends, this strategic plan will call for the University to adopt a multi‐year organizational excellence initiative. The focus of this initiative will be to achieve any and all benefits of streamlining, including quality, speed, feedback, accountability, savings, and innovation. SIX‐YEAR PLAN STRATEGIES Priority 1 – Enrollment Growth To increase enrollment of Virginia students, implement BOV‐approved plan for enrollment growth with approximately 33 to 40 percent of growth targeted in STEM‐H disciplines. Undergraduate enrollment growth targets are 256 in 2014‐15 and 280 in 2015‐16. The University’s current undergraduate enrollment growth plan extends to 2018‐19. For 2014‐16, graduate and professional enrollment growth target is 169 students. Note: The University's enrollment growth plan is contingent upon receiving the appropriate state share of funding per Virginia student. TJ21 OBJECTIVES: E1, E6 PILLARS: 1 Priority 2 – Faculty: Compensation To increase quality and enhance recruitment and retention, implement BOV’s four‐year plan to address the competitiveness of faculty salaries. The University, along with other institutions of higher learning, faces a dramatic generational turnover in faculty during the coming decade. To approach the Attachment A - 17
generational turnover from a position of strength, the University will improve the average faculty salary at each rank to the 20th position of its Association of American Universities (AAU) peers. Assuming that these peers will raise their average faculty salary by three percent each year, the University projects that it can attain the 20th rank with annual merit‐based increases for continuing faculty of 4.75 percent. Across the University, if the current mix of faculty (assistant vs. associate vs. full professors) remained unchanged, these increases would require new annual resources of $32,150,000 by the second year of the plan. However, the University plans that the generational turnover of faculty will result in a more even distribution of assistant vs. associate vs. full professors, whereas now more than half are full professors. Reprogramming savings from retiring full professors into enhancing the average salaries of associate and assistant professors will result in a reallocation of existing funds of $6,932,000 by the second year. The remaining new cost will be $25,218,000, of which $10,622,000 will be funded from incremental tuition (undergraduate, graduate, and professional) increases and the remaining $14,596,000 will be funded from other sources of faculty salaries such as grants and contracts and private resources. TJ21 OBJECTIVES: D PILLARS: 3 Priority 3 – Staff: Compensation To increase quality and enhance recruitment and retention, improve compensation for University and classified staff. The long‐term plan is to move to competitive ranges for all University staff. Total incremental costs assumes no state‐authorized salary increase for classified staff since instructions direct institutions to assume no incremental general funds. A three percent BOV‐authorized merit increase for University staff and administrative/professional faculty is included in the budget for the two‐year period. TJ21 OBJECTIVES: D PILLARS: 6 Priority 4 – Faculty: Start‐Up Packages To increase degree production in STEM‐H disciplines, implement plan to provide sufficient start‐up packages and space to accommodate new STEM‐H faculty associated with enrollment growth and retirement turnover. At a research university like U.Va., the costs associated with the recruitment of STEM‐H faculty go beyond salary and fringe benefits. Such faculty require start‐up packages which support the renovation of laboratories, purchase of equipment, hiring of research staff, and training of graduate students, among others, while the research program is being established. It is the expectation that, within a few years, extramural funding will provide support for ongoing costs. Start‐up packages do not include base salary support or signing bonuses for faculty. TJ21 OBJECTIVES: D, E1, E6, E8 PILLARS: 3 Attachment A - 18
Priority 5 – Affordable Access: Undergraduate Student Financial Aid (AccessUVa) The BOV authorized AccessUVa in February 2004 to ensure that an undergraduate education at the University would be available to all students regardless of their financial circumstances. The program has been successful in increasing socioeconomic diversity, reducing student loan debt, and meeting 100 percent of need for undergraduate students. This program has brought the University significant notoriety as the premier need‐based aid program for a public institution in the United States. There are four main components to the program:  Offer 100 percent of financial need to all undergraduates;  Provide all‐grant aid and eliminate need‐based loans to low‐income students;  Cap need‐based loans for all undergraduate students; and  Include financial literacy education and debt management strategies. Section C includes additional information on the structure of AccessUVa and how aid is distributed to families of different income levels. The University engaged an external consultant in 2012 to review the current AccessUVa program and suggest changes that would moderate future cost increases. The results of the report are being discussed with the BOV; modifications will be approved by September 2013 in order to adequately inform prospective students. In the meantime, the University has made a number of administrative changes (e.g. require a work component, require a student contribution, etc.), the result of which has been to hold in check the increase in the total cost of the program. Note: Incremental costs for in‐state students are included in the “Additional In‐State Student Financial Aid From Tuition Revenue ‐ UGrad and Grad” line item in the “Academic and Financial Plan.” Incremental costs for out‐of‐state students are included in the “Additional Out‐of‐State Student Financial Aid From Tuition Revenue ‐ UGrad and Grad” line item in the “Academic and Financial Plan.” TJ21 OBJECTIVES: A, E5 PILLARS: 6 Priority 6 – Student Success: Total Advising To improve retention and graduation rates, the University will pioneer “total advising,” a multidimensional process that combines high‐quality academic advising, career advising, and coaching, includes an online portfolio, and capitalizes on relationships with U.Va. alumni. Supporting initiatives include, but are not limited to:  Continued growth of the College Advising Fellows and College Advising Seminars (COLAs), concurrent with enrollment growth.  Expansion of the Center for Undergraduate Excellence to enhance student access to and awareness of academically‐related curricular and co‐curricular interests.  Reconsideration of the University’s approach to career advising and career development.  Enhanced academic advising to facilitate growth of the 3+1 program, in which undergraduates with advanced standing will earn a bachelor’s degree and master’s degree in four years. In Attachment A - 19
addition, continue to evaluate existing graduate degree programs for conversion to accelerated programs. Note: There are likely to be incremental costs or reallocations associated with these initiatives. However, as part of the ongoing strategic planning process, details are still being formulated. TJ21 OBJECTIVES: D, E3, E5, E6, E8, E10, E12 PILLARS: 1, 2 Priority 7 – Research & Economic Development: Pan‐University Research Priorities To increase research, including regional and public‐private collaboration, continue development of and support for pan‐University research priorities: (1) systems bioscience and bioengineering, (2) computational systems science and modeling (i.e. “Big Data”), (3) sustainability, (4) systems energy, and (5) the OpenGrounds multidisciplinary innovation collaborative. Pursue additional pan‐University or school‐specific research priorities, not included above, when faculty expertise converges with opportunities presented by private enterprise, local and state government, the federal government, and/or other strategic initiatives. Supporting initiatives include, but are not limited to:  Increasing research support from large corporations, small businesses, NGOs, foundations, venture capitalists, state government, local government, and non‐traditional federal agencies. o Continuing and expanding partnership with Rolls‐Royce, and other related companies, through Commonwealth Center for Advanced Manufacturing (CCAM). o Continuing and expanding partnership with the Defense Intelligence Agency (DIA). o Continuing and expanding partnership with the Commonwealth Center for Advanced Logistics Systems (CCALS). o Expanding the statewide i6 proof‐of‐concept innovation program with funds to match U.S. Department of Commerce support.  Capitalizing on existing expertise within the Center for the Advanced Study of Teaching and Learning‐Higher Education (CASTL‐HE), Institutional Assessment and Studies (IAS), and the Teaching Resource Center (TRC) to position the University as a leader in evidence‐based study of teaching and learning in higher education. The University will apply best practices to produce measurable gains in student learning.  Increasing library support for collaborative research, particularly with respect to “Big Data.” TJ21 OBJECTIVES: E8, E10, E11, E13 PILLARS: 2, 3, 4, 5 Priority 8 – Research & Economic Development: Medical Translational Research To increase research, expand medical translational research, including cancer clinical trials and focused ultrasound surgery, so that laboratory discoveries are converted into new methods to diagnose and treat illness and augment cancer outreach and prevention activities. TJ21 OBJECTIVES: E8 PILLARS: 3, 4, 5 Attachment A - 20
Priority 9 – Research & Economic Development: Innovation Ecosystem To increase research and promote economic development, enhance the innovation ecosystem. Supporting initiatives include, but are not limited to:  Continuing implementation of the U.Va. Economic Development Accelerator (UVEDA), a public‐
private partnership designed to facilitate knowledge transfer and business development around University research and innovation, including a proof‐of‐concept fund.  Continuing implementation of a new relationship between U.Va. and the Licensing and Ventures Group to increase deal flow.  Increasing the number of successful start‐up companies generated from U.Va. research. TJ21 OBJECTIVES: E8, E12 PILLARS: 3, 4, 5, 6 Priority 10 – Quality Enhancement: Self‐Supporting Programs To maintain and enhance programmatic quality, incremental revenue generated by self‐supporting programs (business, graduate commerce, and law) will be used to fund increases in financial aid, utilities and facility maintenance, electronic library resources, and academic programs. TJ21 OBJECTIVES: E13 PILLARS: 1, 2, 3, 6 Priority 11 – Student Success: Student‐Faculty Engagement As part of the University’s strategic plan, continue support for select initiatives of the University’s Quality Enhancement Plan (QEP), submitted to the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) in 2007. “Enhancing Student‐Faculty Engagement” was the topic of the QEP. The University submitted a QEP Impact Report to SACSCOC in March 2013, documenting progress‐to‐date. Supporting initiatives include, but are not limited to:  Improving the student‐to‐faculty ratio in the College of Arts and Sciences, the School of Engineering and Applied Science, and the School of Architecture.  Increasing the range of high‐impact educational experiences for undergraduates, during the academic year and summer session, that includes meaningful research with faculty, service learning, entrepreneurial experiences, and internships. Note: There are likely to be incremental costs or reallocations associated with these initiatives. However, as part of the ongoing strategic planning process, details are still being formulated. TJ21 OBJECTIVES: D PILLARS: 1, 2, 3, 5 Attachment A - 21
Priority 12 – Student Success: Technology‐Enhanced Instruction To increase access, continue growth and development of academic programs and coursework using technology‐enhanced instruction. At present, the University offers 17 certificate programs and 13 degree programs that meet the distance education definition of the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). In 27 of these 30 programs, students may earn more than 50 percent of the program through distance education. In addition, the University is heavily focused on enhancing the use of technology in its residential curriculum. Supporting initiatives include, but are not limited to:  Continued graduate program offerings through the Commonwealth Graduate Engineering Program (CGEP).  Continued undergraduate program offerings through the Engineers PRODUCED in Virginia program. Implement the University’s first ABET‐accredited online degree program – the B.S. in Mechanical Engineering.  Continued partnership with George Mason University, James Madison University, and Virginia Tech through the 4‐VA course‐sharing initiative using Cisco TelePresence technology.  Continued partnership, initiated in fall 2013, with Duke University through a course‐sharing initiative using Cisco TelePresence technology.  Continued institutional support for development of hybrid technology‐enhanced courses and the conversion of courses in select degree and certificate programs – such as the Bachelor of Interdisciplinary Studies – to an online format.  Continued development of online methodologies, in the School of Nursing and the School of Medicine, for virtual clinical learning activities.  Continued partnership with Coursera to offer massive open online courses (MOOCs), including expansion into professional development coursework for educators and courses targeted towards University alumni. Two such courses scheduled for fall 2013 include a course on the administration of John F. Kennedy (to be taught by Larry Sabato) and a course on the life of Thomas Jefferson (to be taught by Peter Onuf) .  Investing in production facilities and classrooms required to place the University at the forefront of efforts that enrich traditional in‐class activities with Web‐based or digital technologies.  Assessing the feasibility of a course‐sharing initiative, in graduate engineering, with Oak Ridge National Laboratory (ORNL) core universities – Duke University, Florida State University, Georgia Institute of Technology, North Carolina State University, University of Tennessee, Vanderbilt University, and Virginia Tech. Note: There are likely to be incremental costs or reallocations associated with these initiatives. However, as part of the ongoing strategic planning process, details are still being formulated. TJ21 OBJECTIVES: C, E1, E6, E10 PILLARS: 1, 2, 6 Priority 13 – Institutional Collaboration: The Virginia Community College System (VCCS)  To increase degree completion for Virginians with partial credit: Attachment A - 22
o
o
o
o
o
o
Expand the Bachelor of Interdisciplinary Studies (BIS) program to Thomas Nelson Community College, effective fall 2014 (current sites include Charlottesville, Tidewater Community College, Northern Virginia Community College, and the Richmond Center). Negotiate a guaranteed admission agreement (GAA) with the VCCS for the Bachelor of Interdisciplinary Studies (BIS) program, effective fall 2015. Implement the Bachelor of Professional Studies in Health Sciences, an online degree program developed in cooperation with the VCCS, effective fall 2014 (pending SCHEV approval). Negotiate a guaranteed admission agreement (GAA) with the VCCS for the Bachelor of Professional Studies in Health Sciences program, effective fall 2015. Implement the guaranteed admission agreement (GAA) with the VCCS for the RN to BSN program. Implement the RN to BSN distance learning initiative with Germanna Community College (GCC). TJ21 OBJECTIVES: E1, E2, E3, E4, E6, E7, E10, E13 PILLARS: 1, 2, 6 Priority 14 – Efficiency and Continuous Improvement Building upon the success of the institution’s formal improvement program established in 1994, the University will launch a more comprehensive effort, Organizational Excellence, to enhance effectiveness and efficiency in academic and administrative areas. Institutional and departmental unit efforts will result in resource optimization, streamlining, reorganizations and partnerships, and improved quality. The goal is to redirect at least one percent of the operating budget annually. Supplemental information, appended to the end of this section, provides specific examples of the University’s most significant approaches and accounts for a projected savings/reallocation/cost avoidance of $17.6 million over the biennium. TJ21 OBJECTIVES: B, E9, E12 PILLARS: 6 Priority 15 – Research & Economic Development: Southwest Virginia Economic Development Partnership (Appalachian Prosperity Project) Continue and enhance the University’s Southwest Virginia Economic Development Partnership, the Appalachian Prosperity Project, with a continued focus on (1) K‐12 education support, (2) business support/entrepreneurship, and (3) access to healthcare. TJ21 OBJECTIVES: E13 PILLARS: 4, 5 Attachment A - 23
Priority 14: Efficiency and Continuous Improvement Specific Examples TJ21 Objectives: E9: Other efficiency reforms to reduce total institutional cost. E12: Innovation and continuous improvement. As one of the nation’s premier public universities, the University of Virginia seeks to be a leader in the development of innovative strategies and continuous improvement through the effective stewardship of its public and private resources. Ongoing cost‐containment efforts, enhanced efficiencies, and process improvement are foundational. Both the academic departments and administrative offices benchmark best practices in higher education and other industries and regularly monitor performance to ensure continued improvement. Accordingly, the University’s most significant approaches to efficiency and improvement are described below and the associated cost avoidance and savings projections. These strategies and approaches are differentiated into one of six categories: Consolidation, Realignment, or Redesign of Units; Cost Cutting Initiatives; New Models of Service; Partnerships and Collaborations; Revenue Generation; Energy Conservation and Sustainability. The estimated savings and reallocation total for the 2014‐16 biennium is $17,637,689, or approximately $8,818,845 on an annual basis. Consolidation/Realignment/Redesign of Units Biennial Estimated Savings and Reallocated Dollars: $1,251,955 Many of our academic programs and administrative offices have developed strategies to consolidate or realign units to promote greater efficiencies and cost effectiveness. Examples include:  Academic departments seek to optimize the effectiveness and efficiency of administrative functions through the use of employed faculty and less‐costly administrators. For example, the Curry School has decided to redistribute operational functions to staff members and focus faculty efforts on quality teaching and research (estimated to save $420,000 over the biennium). The Law School is reducing its administrative support in order to reallocate funds to student financial aid, resulting in an estimated $50,000 in annual aid.  Several efforts to redesign the function of the Student Affairs units will result in substantial savings for the University. New funding models for two Associate Deans and administrative staff will enable better services to the increased student population and University Admissions while reducing the overall cost to Student Affairs. The merger of the fiscal and program coordinator positions will provide cost reductions and resource optimization in light of rising costs regarding summer orientation. Finally, Student Affairs will consolidate housekeeping and maintenance operations, providing a 5% guaranteed annual savings. In total, these strategies are estimated to provide an estimated $504,000 over the biennium.  Several strategies to retrain existing employees to perform additional duties normally performed by a separate unit or contractor will result in additional savings. Examples include the repurposing of a debt accountant position in the Comptroller’s Office to increase the analysis of business intelligence, developing efficiencies and increasing capabilities of the office. WTJU, the University’s noncommercial educational radio station, will train existing staff members to Attachment A - 24
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perform work installing, repairing, and maintaining equipment: practices normally contracted out. In total, strategies to retrain employees to perform additional duties are estimated to provide $206,000 in savings over the biennium. The Intramural and Recreational Sports unit has committed to reduce the number of employees hired and reduce operating hours to reduce total unit cost, resulting in $21,000 in savings annually. In addition, IM‐Rec Sports will hold open any full‐time staff vacancies that arise in the foreseeable future, resulting in additional savings over‐and‐beyond that already estimated. New Models of Service Biennial Estimated Savings and Reallocated Dollars: $519,000 In addition to the redesign of units, processes and models of service are being revamped to encourage greater savings and increased efficiencies. While decreased costs are realized, the University is careful to ensure that these new models of service are not only necessary but efficacious. Examples include:  The Law School is expanding their collection of digital library materials (and access to these materials) while reducing expenditures on the Law Library’s print materials. Reallocation of funds from the print collection to digital content, in light of the lower cost of digital content and reduced maintenance costs of the print collection, will have a substantial effect on student access to information. The reduction of funding for print materials is estimated to be $125,000 annually.  The Architecture School will establish an in‐house printing press, eliminating the need to contract printed materials outside of the school while at the same time expanding the quality and variety of printed promotional materials. The school projects savings totaling $37,000 annually.  The office of the Comptroller will continue to direct resources from a reduced emphasis on the Agency Risk Management and Internal Controls Standards (ARMICS) to more emphasis on Recon@UVA, a system that provides an electronic solution for the documentation of reconciliations for all organizational units at the University of Virginia. Recon@UVA provides at the same time more accurate information and an easier reporting service than that of ARMICS. The reallocation of these efforts to improve efficiency and effectiveness is estimated to be $180,000 over the biennium.  Student Affairs will consolidate the Summer Orientation program from 8 to 5 weeks, resulting in significant savings regarding staffing and O&M costs.  The Virginia Quarterly Review magazine will begin a campaign to increase the percentage of digital subscribers as a percentage of total magazine subscribers from 2% to 15% by 2015, resulting in lowered printing and mailing costs totaling savings of $15,000 over the biennium. Cost Cutting Initiatives Biennial Estimated Savings and Reallocated Dollars: $12,395,700 Important to the ongoing improvement of the University is the reduction of incurred cost on behalf of the student. The University thus seeks ways to cut costs when possible to reduce overhead while providing optimal benefits to its constituencies.  Implementation of objectives that align with the Affordable Care Act and other health plan changes will realize savings of $4,003,700 over the biennium. Strategies to realize these goals Attachment A - 25
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include improved wellness screenings for employees and spouses, implementation of consumer driven health plans with health savings accounts, disease management programs, and eligibility modifications for varying levels of healthcare. The office of Risk Management will continue to self‐insure the first $100,000 of each property and equipment breakdown loss, and self‐insure the first $20,000 of vehicle losses. This is estimated to save the University $280,000 each biennium. Our Space and Real‐Estate Management office estimates savings totaling $112,000 over the biennium through the negotiation for lower total real estate lease costs at lease commencement and at each renewal or extension opportunity. The Procurement office estimates 5% savings of total contract spend, nearly $8,000,000 over the biennium, to be achieved through negotiations over the time period. Several large expenditure contracts to be negotiated include the dining services contracts, office supplies, contract facilities repair and maintenance items, and several scientific contracts. The office of Procurement will continue to realize savings from projects either recently negotiated or currently under contract renegotiation: several projects include the procurement of new fiber optic cable with longer shelf‐life ($194,055 savings per biennium), consolidation of retirement vendors from three to two, reducing faculty and staff costs by $600,000 per year, and the renegotiation of the beverage contract which includes a yearly signing bonus of $100,000. Partnerships/Collaborations Biennial Estimated Savings and Reallocated Dollars: $230,000 The University of Virginia seeks to create partnerships with local business and corporations in order to invest in the community while leveraging collaborative efforts. In doing so, the University is able to not only invest in the community, but also attain real savings.  Examples include the development of an auxiliary sales‐and‐services unit to market Curry innovations and a contract with local businesses for enhanced surplus property functions. Revenue Generation Biennial Estimated Savings and Reallocated Dollars: $245,000 Multiple avenues exist for the University to leverage their assets and products to generate revenue. Examples include:  The Virginia Quarterly Review will create a multi‐day writing workshop / conference taught by nationally distinguished authors and journalists, realizing $20,000 in revenue over the biennium.  The Procurement Office seeks to increase their analysis of spending, payment, and cash flow strategies. Other strategies include the use of the University Purchasing Card to drive rebates, applying the Fee for Service Model to increase revenue from catalog suppliers, and expanding the vendor rebate/discount and Publicly Accessible Contract programs. Revenue estimates for the biennium total $200,000. Energy Conservation and Sustainability Biennial Estimated Savings and Reallocated Dollars: $2,996,000 Attachment A - 26
The University seeks to provide leadership toward achievement of the University’s sustainability resolution endorsed by the Board of Visitors in June 2011.  This includes developing and implementing additional initiatives to contain costs and promote environmental stewardship, such as retro‐commissioning of systems in high‐energy intensity buildings, and the embedding of green practices through LEED certification, housekeeping initiatives, and landscaping practices. Estimated savings are approximately $3,000,000 over the biennium. Attachment A - 27
C. Financial Aid The University of Virginia’s Board of Visitors authorized AccessUVa in February 2004 to ensure that an undergraduate education at the University would be available to all students regardless of their financial circumstances. The program has been successful in increasing socioeconomic diversity, reducing student loan debt and meeting 100 percent of need for all of the University’s undergraduate students. This program has brought the University significant notoriety as the premier need‐based aid program for a public institution in the United States. There are four main components to the program:  Offer 100 percent of financial need to all undergraduates;  Provide all‐grant aid; eliminate need‐based loans to low‐income students;  Cap need‐based loans for all undergraduate students; and  Include financial literacy education and debt management strategies; The following table highlights examples of how aid is awarded through the AccessUVa program to students from families of different income levels (low = less than 200 percent of federal poverty guidelines; middle = 200 to 400 percent of federal poverty guidelines; and high = greater than 400 percent of poverty guidelines): AccessUVa
AY2013 - 2014
Low Income
Family Income < $47K
(200% of Poverty or Less)
(Example Income $0K)
Middle Income Family Income $47K ‐ $94K
(200% ‐ 400% of Poverty)
(Example Income $70K)
High Income
Family Income > $94K (Greater than 400% of Poverty)
(Example is $100K)
Current
Current
Current
Instate
Total Cost of Attendance
Less Expected Family Contribution
Total Need
26,300
26,300
1,600
13,600
26,300
19,000
24,700
12,700
7,300
7,000
7,000
How Need is Met
Subsidized Loans
Work Expectation
Grants from State, Federal and
Private Sources
3,000
10,850
2,850
Grants from Tuition
10,850
2,850
Unmet Need
0
Out of State
Current
Total Cost of Attendance
Less Expected Family Contribution
Total Need
0
300
0
Current
0
Current
54,500
54,500
54,500
1,600
13,600
19,000
52,900
40,900
35,500
7,000
7,000
4,000
4,000
How Need is Met
Subsidized Loans
Work Expectation
Grants from State, Federal and
Private Sources
4,000
14,670
8,970
7,350
Grants from Tuition
34,230
20,930
17,150
Unmet Need
0
Assumptions: Family of four, no assets, one in college
Attachment A - 28
0
0
The following table shows the various sources of funding that comprise the AccessUVa budget, which reached approximately $95 million in 2012‐13. Institutional grants comprise about $40.2 million of the budget and are taken from unrestricted institutional funds. The remainder of the funding comes from state, federal, and private funds as well as athletics grants‐in‐aid. Attachment A - 29
D. Evaluation of Previous Six‐Year Plan (2012‐13) The University of Virginia received $800,000 in general funds in 2012‐13 to address the objectives of the Higher Education Opportunity Act of 2011. In addition to progress on strategies, the narrative below describes how those funds have been used and are noted as “HEOA funding.” Priority 1 – Enrollment Growth The University’s on‐Grounds undergraduate enrollment projection for fall 2012, approved by SCHEV in June 2011, was 14,620. Actual enrollment totaled 14,641 or 100.1 percent of the projection. For Virginia residents, the University met 98.7 percent of its on‐Grounds undergraduate enrollment projection for fall 2012 (10,203). The University’s actual total annual FTE is estimated to meet 97.6 percent of its target of 24,396 and 98.0 percent of its in‐state FTE target (13,888). In the School of Medicine, fall 2012 headcount met 100.3 percent of its target of 612. For 2012‐13, 33.3 percent of bachelor’s degrees awarded were in STEM‐H fields (based on the SCHEV definition of STEM‐H for U.Va.). Among Virginia residents, 35.4 percent were in STEM‐H fields. The College of Arts and Sciences received $45,000 in HEOA funding. This funding was utilized to purchase 20 rotary evaporators in organic chemistry classroom laboratories. This investment allowed for adequate fume hood capacity in CHEM 2411 and CHEM 2421 which supports the HEOA objective to increase degree production in STEM‐H disciplines. Priority 2 – Faculty Start‐Up Packages The College of Arts and Sciences (CLAS) and the School of Engineering and Applied Science (SEAS) represent the two undergraduate schools of the University that will absorb the greatest proportion of undergraduate enrollment growth. In addition to hiring new faculty to accommodate enrollment growth, the University is experiencing significant faculty turnover due to retirements. At a research university like U.Va., the costs associated with the recruitment of STEM‐H faculty go beyond salary and fringe benefits. Such faculty require start‐up packages which support the renovation of laboratories, purchase of equipment, hiring of research staff, and training of graduate students, among others, while the research program is being established. It is the expectation that, within a few years, extramural funding will provide support for any ongoing costs. Start‐up packages do not include base salary support or signing bonuses for new faculty. The University has previously submitted budget amendments for faculty start‐up packages that were not funded by the Commonwealth. In 2012‐13, the College of Arts and Sciences hired 13 faculty with associated start‐packages while the School of Engineering and Applied Science hired five faculty with associated start‐up packages. Start‐up packages were supported through reallocation of funds during 2012‐13. However, funding for faculty start‐ups is an ongoing need with insufficient base operational resources to maintain long‐term competitiveness. Priority 3 – Faculty and Staff Bonus In December 2012, the University implemented the state‐authorized three percent bonus for eligible faculty and staff. For state‐funded positions, one third of the cost of the bonus was supported by state general funds, one third by tuition, and one third was reallocated by departments and schools. Attachment A - 30
Priority 4 – Faculty Compensation In December 2011, the University implemented a BOV‐authorized strategic salary adjustment for faculty equivalent to two percent of the faculty salary base. In February 2013, the Board of Visitors approved a four‐year plan to address the competitiveness of faculty salaries. The plan calls for an average 4.75 percent salary increase in each of the four years through 2016‐17. Modeling assumptions included a peer annual average increase of three percent and a state‐authorized increase of two percent annually. The University’s 2013‐14 budget includes funding for the 4.75 percent increase using a combination of the three percent salary increase authorized by the state with an additional 1.75 percent reallocated from base budget savings. Priority 5 – Staff Compensation The University has an overall goal of reaching the 50th percentile of market‐based salaries for its staff employees. Classified staff are bound by the state‐authorized salary increase while the Board of Visitors has greater flexibility with regard to University staff salaries. In 2013‐14, the operating budget includes the two percent across‐the‐board salary increase for classified staff who “meet expectations” and the $65 per year of service compression adjustment. The budget includes an average three percent salary increase for University staff which will be awarded based on merit. This increase is roughly equivalent to the average increase awarded to classified staff when both the two percent increase and the compression adjustment are considered. Priority 6 – Pan‐University Research Priorities The University identified five pan‐University research priorities in its Six‐Year Plan: (1) systems bioscience and bioengineering, (2) computational systems science and modeling (Big Data), (3) sustainability, (4) systems energy, and (5) the OpenGrounds multidisciplinary innovation collaborative. Each of these initiatives has made great strides forward during 2012‐13 with significant private and federal collaborations associated with each effort. Select examples include:  Systems Bioscience and Bioengineering o Supported key recruitment and retention efforts in neuroscience, biomedical engineering, and cardiovascular medicine. o Assessed capabilities of all bioscience departments to develop areas where new opportunities exist, such as neuroscience, microbiome, drug discovery, and computational modeling.  Computational Systems Science and Modeling (Big Data) o The new "Big Data" initiative brought together the computational, analytic, and big data research communities at U.Va. More than 170 faculty and the University’s executive leadership have been involved in the planning stages for this emerging effort. o Plans are proceeding to develop a master's degree, a graduate certificate, and an undergraduate minor with associated curriculum development. The University is formulating a strategy for cluster hires of new faculty across the institution and to pursue opportunities for new funding with corporate partners, including IBM, SAP, Microsoft, and Micron.  Sustainability o The U.Va. Bay Game, a model of the Chesapeake Bay watershed, the nation's largest estuary, involves eight different schools at the University. In May 2013, it received the Attachment A - 31
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Leveraging Excellence Award from the National Consortium for Continuous Improvement in Higher Education. A general template has been developed, the Global Water Game. o The U.Va. Bay Game has been described by federal and state agencies, NGOs, and corporate and education leaders as "the first of its kind" and "simply the best watershed management tool that exists." o U.Va. has the potential to become the global leader in shallow water coastal ecosystem research. Many universities are now just beginning to name "water" and related studies as essential strategic themes. U.Va. has been a leader. Systems Energy o Designed and built the first two affordable homes in the United States meeting "Passive Energy" standards. o Seeded revolutionary concept for intensive cooling of computer chips for data centers which extracts extreme levels of waste heat, which can then be utilized as energy source. OpenGrounds o Since opening in 2012, the OpenGrounds Studio has hosted 241 events. The space has created a place in the University culture among students and faculty that serves an essential role in building networks outside the boundaries of existing units. o OpenGrounds launched its first “challenge program” in partnership with Vonage, supporting University student and faculty research (funding level at $120,000). o The second student challenge will be offered in fall 2013, with sponsorship from Hearst Business Media (funding level at $50,000+). Priority 7 – Undergraduate Financial Aid: AccessUVa The University continues to support its signature financial aid program, AccessUVa. In 2012‐13, the total cost increase was $2.9 million, which included $156,040 additional funding from the state, $1.8 million from tuition, and the remainder from private, federal, and external sources. The University has implemented several administrative modifications to the program, effective in 2013‐14, in order to hold down the cost of the program. A study by an external consultant is being analyzed and will be discussed by the Board of Visitors to determine the future direction of the program. Priority 8 – Medical Translational Research In 2012‐13, the University received a general fund allocation of $1,500,000 to support cancer research and $750,000 to support focused ultrasound research. Select examples of progress on these activities and other medical translational research efforts include:  Overall, School of Medicine extramural funding for clinical research in 2012‐13 increased more than 16 percent over the previous year; the research portfolio has increased the translational and clinical focus in neuroscience and cancer.  Cancer Center subjects on trials increased 27 percent over the past year. Faculty searches are underway for outcomes researchers, including in the area of cancer prevention and control. Successful searches have been completed for a new director of the Cancer Center and for the inaugural director of the Virginia Center for Translational and Regulatory Studies. Attachment A - 32
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Funded projects include a focused ultrasound trial for Parkinson’s disease and a genomics trial for relapsed pediatric cancers. A successful trial for treatment of essential tremor with focused ultrasound has been completed. Launched a strategic clinical plan that includes funds for clinical research grants and infrastructure funding for genomics and imaging and clinical effectiveness/outcomes research. Launched the “Cancer Center Without Walls,” the goal of which is to increase access for the citizens of the Tobacco Region to the revolutionary advances in cancer care, including clinical research, that are available only at NCI‐designated cancer centers. o The “Cancer Center Without Walls” helps build a healthy citizenry by enhancing access to the full spectrum of cutting‐edge cancer prevention, risk management, and treatment. It also helps build a healthy economy by expanding the health and IT workforce, investing in local healthcare delivery, and retaining clinical expenditures in the Tobacco Region. o The $1 million grant began January 1, 2013 and lasts 18 months. To date, U.Va. has launched efforts in mobile mammography and telemedicine video colposcopy and a prostate cancer trial has opened at two sites in Southwest Virginia. The University is now launching the Health Heritage project, which will examine cancer risk and prevention among this population. Priority 9 – Self‐Supporting Programs The University utilized incremental tuition revenue from self‐supporting programs (business, graduate commerce, and law) to maintain and enhance programmatic quality. Incremental tuition revenue was allocated to financial aid, utility and facilities maintenance, electronic library resources, and academic programs. In addition, the Darden School of Business reallocated $200,000 to invest in curriculum innovations related to the assessment of student learning, as well as investing in behavioral research. Priority 10 – Economic Development In partnership with the Commonwealth, the University established the U.Va. Economic Development Accelerator (UVEDA), a public‐private partnership designed to facilitate knowledge transfer and business development around University research and innovation. The new $2 million program ($1 million from the state in 2013‐14, plus a U.Va. match) will enhance proof‐of‐concept research, promote economic development, and accelerate university innovations toward new products, services and companies. These funds will leverage external dollars. The University expects a 7:1 return on investment, which will generate new research and proof‐of‐concept funding, business development and product development, and associated jobs. The new relationship with the Licensing and Ventures Group is progressing with new staff hired and a revised incentive‐based licensing revenue distribution formula in place. In addition, the University initiated the first "Entrepreneur‐in‐Residence" initiative, bringing in a seasoned executive with experience in launching and securing funding for startup companies, to work with high‐potential U.Va. projects and innovators to accelerate the development and launch of new companies to commercialize discoveries. Attachment A - 33
Priority 11 – Student‐Faculty Ratio The University maintains an aspirational goal of a 15:1 student‐faculty ratio. In fall 2012, using the methodology of the Common Data Set, the student‐faculty ratio, was 15.8:1. This represents a deterioration from 15.6:1 in fall 2011 and 15.3:1 in fall 2010. In the University’s largest school, the College of Arts and Sciences, the student‐faculty ratio was 17.4:1 in fall 2012. This represents an improvement from 17.7:1 in fall 2011, but a deterioration from 17.2:1 in fall 2010. Despite not meeting its aspirational goal, the University maintains a competitive position with respect to AAU institutions. As of fall 2011, the University ranked fourth – tied with five other institutions – among AAU public institutions on this measure. Priority 12 – Graduate Student Financial Aid The School of Engineering and Applied Science reallocated $122,000 to increase support for graduate teaching assistants (GTAs). GTAs are a critical instructional means by which to accommodate undergraduate enrollment growth in STEM‐H disciplines. Priority 13 – Library The University Library received $178,500 in HEOA funding and reallocated $105,602. These funds were utilized to expand collaborative efforts enabling data‐intensive research across disciplines. In addition to existing efforts in this arena, the University Library has reallocated 2.0 FTE to focus on data support services. Incremental and reallocated revenue has provided the resources to complement discipline‐
specific research agendas, help faculty obtain grants, and build a community of diverse scholars interested in similar research issues. In addition, funding is being utilized to expand training initiatives to prepare students for data‐intensive career opportunities. This funding meets the HEOA objectives to increase research and increase technology‐enhanced instruction. Priority 14 – Technology Enhancement The University made a number of enhancements with respect to information technology (IT) operations and infrastructure, which are clustered around “major themes,” including: Major Theme: Improving central IT’s operational efficiency.  Implemented components of IT service management best practices (ITIL), improving both customer service and operational efficiency;  Published a service catalog of 113 services with promised service levels;  Implemented a robust incident management process leading to significant decrease in mean time to resolution of system outages;  Continued to negotiate and publish service level agreements with a variety of customers; and  Undertook a comprehensive storage inventory and analysis and procured a new storage solution from a single vendor. Implementation of this solution will allow more streamlined provisioning of services to the University and more efficient – and less costly – management and operation. Major Theme: Continue to modernize our enterprise IT architecture and policy.  Procured dark fiber of up to 40Gb capacity, with 10Gb operationalized. This provides the University with a significant increase in its ability to support bandwidth‐intense research activity. Attachment A - 34
Major Theme: Continue to invest in strategic initiatives.  Digital preservation – Developed active national partner communities for APTrust and the Digital Preservation Network (DPN), preservation initiatives aimed at medium‐term and long‐term scholarly preservation. Both initiatives are in early system design and development stages, with APTrust expected to deliver Phase 1 in December 2013; and  Created and equipped the new VizLab in Rice Hall and collaborated with the University Library on the new Viz Wall in Clemons Library. Priority 15 – Increase Research Support from Non‐Traditional Sources The University made great strides in diversifying its research portfolio over the past year by creating partnerships with multiple sponsors. Select examples include:  U.Va. and AstraZeneca are working together to develop innovative treatments for cardiovascular disease. Over $8 million in funding has been committed to the University, supporting preclinical research projects that identify disease mechanisms and biological targets for commercially viable treatments.  The Virginia Innovation Partnership, led by U.Va., is one of only seven multi‐institution initiatives nationwide to receive federal funding as part of the U.S. Department of Commerce’s 2012 “i6 Challenge.” With more than $1 million in matching funds, the program brings together universities, community colleges, corporations, investment capital, and other resources to drive promising research discoveries forward.  As part of a strategic partnership with Nike, the University designed a participatory simulation game based on the sustainable manufacture of t‐shirts. (Funding level at more than $400,000.)  Through the Commonwealth Research Commercialization Fund, U.Va. faculty were awarded more than $530,000 in support for the life sciences, cybersecurity, and energy research efforts. An additional $150,000 was awarded to faculty‐led local start‐up companies. Priority 16 – Bachelor of Interdisciplinary Studies The Bachelor of Interdisciplinary Studies (BIS), a part‐time undergraduate degree program for adults, was expanded to the University’s Richmond Center in fall 2012. The University is in discussions with Thomas Nelson Community College (TNCC) to expand the program to TNCC, effective fall 2014. The expansion of the BIS program to the Richmond Center was partially supported through a reallocation of funds from administrative to instructional areas, as well as a restructuring of BIS administrative functions. Priority 17 – Technology‐Enhanced Instruction The University offers 17 certificate programs and 13 degree programs that meet the distance education definition of the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). In 27 of these 30 programs, students may earn more than 50 percent of the program through distance education. In addition, the University is heavily focused on enhancing the use of technology in its residential curriculum. Items of note during 2012‐13 include:  Course‐sharing initiative with 4‐VA – The University continued its partnership with George Mason University, James Madison University, and Virginia Tech to utilize Cisco TelePresence Attachment A - 35
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technology in a course‐sharing initiative. Since inception, the University has participated in three courses through 4‐VA. Course‐sharing initiative with Duke University – The University signed an MOU with Duke University to utilize Cisco TelePresence technology in a course‐sharing initiative. Initial course offerings will focus on less commonly taught languages (LCTLs), including Creole and Tibetan. Coursera – To date, the University has offered six massively open online courses (MOOCs) with a combined enrollment of 411,000 and 25,000 participants receiving “Statements of Accomplishment.” In addition, it joined a team of Coursera partner institutions to begin offering professional development coursework for K‐12 educators. Commonwealth Graduate Engineering Program (CGEP) – CGEP successfully completed the transition from site‐based distance education to desktop delivery of graduate engineering courses. PRODUCED in Virginia – The PRODUCED program received $75,000 in HEOA funding to design laboratory activities that can be completed through distance education. At present, only the B.S. in Engineering Science, which is not an ABET‐accredited program, is offered through PRODUCED. The development of distance learning laboratory activities, that meet ABET accreditation requirements, will allow the University to expand the engineering programs offered through PRODUCED. This funding supports the HEOA objectives to increase enrollment of Virginia students, increase degree completion for Virginia residents, enhance community college transfer programs, increase degree production in STEM‐H disciplines, and increase technology‐enhanced instruction, including course redesign and online instruction. Bachelor of Interdisciplinary Studies (BIS) – The BIS program received $45,000 in HEOA funding to convert five existing courses to an online format. These courses may be taken by students in both the BIS and BPS part‐time degree programs (cross‐reference priority 16). This funding supports the HEOA objectives to enhance community college transfer programs and increase technology‐enhanced instruction, including course redesign and online instruction. Bachelor of Professional Studies (BPS) in Health Sciences – The BPS program received $70,000 in HEOA funding to create two new online courses for the BPS and to initiate marketing and outreach to feeder institutions within the VCCS (cross‐reference priority 23). This funding supports the HEOA objectives to increase enrollment of Virginia students, increase degree completion for Virginia residents, enhance community college transfer programs, increase degree production in STEM‐H disciplines, and increase technology‐enhanced instruction, including course redesign and online instruction. Hybrid Technology‐Enhanced Courses – During 2012‐13, the Office of the President and the Teaching Resource Center awarded 10 grants for faculty to develop hybrid courses that incorporate the use of digital technology. A second round of proposals was solicited in April 2013 for courses being offered in 2013‐14. Distance Education Initiative with Germanna Community College (GCC) –The University signed an MOU with GCC to develop a distance education initiative for students admitted to the RN to BSN program. Students residing in the vicinity of GCC may complete the first‐year of coursework, via synchronous distance education, on the campus of GCC rather than travelling to Charlottesville. Priority 18 – 3+1 In 2012‐13, 82 students earned a bachelor’s degree in three years or less, representing 2.6 percent of the Class of 2013 (80 students did so in 2011‐12). In addition, 14 students graduated with a bachelor’s Attachment A - 36
and master’s degree in four years. Currently, the following University master’s programs are amenable to the 3+1 program: commerce, Middle Eastern and South Asian studies, public policy, statistics, and teacher education. As the University looks to expand the 3+1 program, it is exploring the development of professional master’s degree programs in chemistry, environmental sciences, French, and religious studies. The Curry School of Education reallocated $25,000 to shift from a 9‐month to a 12‐month teaching model in support of more timely degree completion. Priority 19 – Deferred Maintenance Despite the investment included in the Six‐Year Plan, the University is behind on funding the deferred maintenance plan presented to the Board of Visitors, extending the time it will take to commit the required funding included in the plan. The operating budget for 2013‐14 includes an additional $1.5 million for operating budget maintenance in accordance with the Board approved multi‐year plan. The goal is to reach a reinvestment rate of two percent of plant value and a Facilities Condition Index (FCI) of five percent. Priority 20 – Internships and Research Experiences The School of Nursing received $50,000 in HEOA funding to expand undergraduate research opportunities in STEM‐H disciplines. Such opportunities include the establishment of an academic‐year undergraduate research assistantship program, a summer undergraduate research internship program, an undergraduate research poster competition, and a travel program for undergraduates to present with faculty at research conferences. This funding supports the HEOA objectives to improve retention and graduation rates and optimize year‐round use of institutional and instructional facilities. Priority 21 – Summer Session and January Term In 2005, the University established a January Term, or J‐Term, as an opportunity for students to take an intensive two‐week course and earn three credits. Enrollment in J‐Term courses has grown from 267 in 2005 to 1,225 in 2013, a 359 percent increase. In J‐Term 2013, classes met in 15 different facilities on Grounds, resulting in better utilization of facilities. Likewise, hundreds of students advance their academic standing through summer school courses, which use U.Va. facilities during the summer months. Priority 22 – Medical and Nursing Curriculum The School of Medicine continued implementation of its redesigned curriculum, which includes extensive use of instructional technology through the “Learning Studio,” the Medical Simulation Center, and the Clinical Skills Center. The School of Nursing received $96,500 in HEOA funding for two initiatives:  $47,000 for the Inter‐Professional Education (IPE) Initiative – In partnership with the School of Medicine, the IPE initiative is designed to train the next generation of health care providers in an environment that fosters collaboration to provide patient‐centered care. This funding supports the HEOA objectives to increase degree production in STEM‐H disciplines and develop new programs or initiatives, including quality enhancements. Attachment A - 37
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$49,500 for the Virtual Clinical Learning Initiative – In partnership with the School of Medicine, this initiative is designed to provide online methodologies for virtual clinical learning activities. Such activities provide a richer educational experience, reach a wider student population, and expand the IPE initiative referenced above. This funding supports the HEOA objectives to increase degree production in STEM‐H disciplines and increase technology‐enhanced instruction, including course redesign and online instruction. Priority 23 – Bachelor of Professional Studies The Bachelor of Professional Studies (BPS) in Health Sciences is a proposed degree completion program for graduates of the Virginia Community College System (VCCS). The Board of Visitors approved the degree program on May 21, 2013. A draft program proposal is under review by the State Council of Higher Education for Virginia. If the proposal proceeds expeditiously through the SCHEV program approval process, the expected initiation date is fall 2014. In 2012‐13, the BPS program received $70,000 in HEOA funding to create two new online courses for the BPS and to initiate marketing and outreach to feeder institutions within the VCCS. In addition, the School of Continuing and Professional Studies (SCPS) and the U.Va. Medical Center reallocated $32,000 to assist with developmental costs related to the BPS program. This funding supports the HEOA objectives to increase enrollment of Virginia students, increase degree completion for Virginia residents, enhance community college transfer programs, increase degree production in STEM‐H disciplines, and increase technology‐enhanced instruction, including course redesign and online instruction. Priority 24 – Comprehensive Wellness Plan The comprehensive wellness program, known as Hoo’s Well, is designed to help employees get healthy and stay healthy by improving their general fitness and reducing their risk for heart disease, cancer, diabetes, and other chronic conditions. The program includes education, wellness activities, goal setting, outreach programs and referrals, and monetary incentives. As a result of preventing illness and improving the health of University employees, healthcare claim expenses and personal healthcare expenses should decrease. The program was launched in September 2011 and now includes:  Individual employee biometric screenings (blood pressure, blood glucose, cholesterol, waist circumference) and online health assessment (health history, lifestyle and habits, and health screenings) to understand level of wellness.  An employee action plan for improvement, including a customized to‐do list.  A variety of wellness programs for employees: o On‐Grounds examples include Hoo’s Well Eats Well, Steps@UVa, Lunch and Learn, Igniting Positive Change, Nutritional Consultants, Fitness Consultations, Walking Program, and Weight Watchers. o Aetna online offerings include healthy eating, relaxation, overcoming depression, and overcoming insomnia.  Incentives for taking recommended actions to stay healthy. The savings related to the comprehensive wellness program are incorporated in Priority 38 – Academic and Administrative Efficiencies. Attachment A - 38
Priority 25 – Preservation of Historically Significant Buildings During the summer of 2012 the University undertook a project to repair the fireplaces and replace the flues in 105 chimneys in the Lawn and Range student rooms after cracks and deterioration were found during an inspection which resulted in a prohibition of fires in the fireplaces until the repairs could be executed. The work went a step further by including a fire suppression system in all of the rooms. The total cost of the project was $3.7 million. The University also completed the first phase of renovation and repair to the Rotunda by replacing the roof, repairing the windows, and repointing the brick. The state has provided $24 million for the balance of the renovation project and the University will match this amount with private fundraising. Priority 26 – University Community Partnership for Next Generation Innovation Phase II of the University Community Partnership for Next Generation Innovation (Gig‐U) is nearing completion, and planning is under way for a possible Phase III. As a result of the work done by this partnership, the critical importance of advanced broadband connectivity for national competitiveness on the global economic field has become a regular part of the national conversation. (For example, see the recent White House announcement at www.whitehouse.gov/the‐press‐
office/2013/06/06/president‐obama‐unveils‐connected‐initiative‐bring‐america‐s‐students‐di.) A number of Gig‐U research university communities have launched Gig‐U‐catalyzed initiatives. Priority 27 – Increase in Virginia Retirement System (VRS) Contribution The legislature passed a bill to put the VRS system back on sound financial footing by increasing the percentage of the VRS board recommended contribution rate that is funded each biennium. The first step increase occurred in FY13 and was funded from incremental general funds and tuition for those employees paid from state funds. All other costs were borne by the fund source that pays the employee’s salary. Priority 28 – Academic Facility Scheduling The University routinely engages in best practices related to academic facility scheduling. The University has a central classroom system administered by the University Registrar serving the seven schools with undergraduate students. In its most recent public report, using fall 2010 data, SCHEV reported a 70.49 percent classroom occupancy rate for the University’s main campus (VCU had the highest classroom occupancy rate at 76.83 percent) and a laboratory occupancy rate of 86.94 percent for the University’s main campus (the highest in the state). According to institution‐specific data recently provided to the University by SCHEV, the fall 2012 classroom occupancy rate increased to 73.93 percent while the fall 2012 laboratory occupancy rate increased to 94.24 percent. By 2018, the University has committed to the Commonwealth to increase enrollment by 1,673 students. The University is planning for 33 to 40 percent of undergraduate enrollment growth to be in the STEM disciplines, with the largest growth in biology and chemistry. U.Va. is planning to modernize its labs in chemistry and biology, increase their number, and redesign them to support planned changes in pedagogy. Over the past year, significant effort has been expended surrounding space utilization and planning for STEM‐H facilities. Section E includes a more detailed discussion of efforts to maximize space utilization in upcoming capital projects, particularly for STEM‐H facilities. Attachment A - 39
Priority 29 – College Advising Fellows and College Advising Seminars As part of its Quality Enhancement Plan (QEP) for the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), the University has continued to invest in College Advising Seminars (COLAs), including through reallocation. COLAs are one‐credit, graded seminars open to new first‐year students and new second‐year transfer students in which approximately 20 percent of course content is devoted to advising issues. Between 2007‐08 and 2012‐13, both enrollment and course sections offered increased by more than 450 percent. Priority 30 – Operations and Maintenance (O&M) for New Facilities New O&M support was funded based on expected occupancy rates. For 2012‐13, this included Lacy Hall (School of Engineering and Applied Science/Facilities Management), Jordan Hall, ITC Data Center, UPS maintenance contract, Newcomb Hall’s dining expansion, and the Caplin Theatre. For 2013‐14, projects incurring either new or incremental O&M include New Cabell Hall (HVAC system), Lawn and Range Room sprinkler systems, and the North Grounds Recreation Center expansion. Priority 31 – General Fund Share of 2005‐10 Undergraduate Enrollment Growth In response to the Restructured Higher Education Financial and Administrative Operations Act, U.Va. submitted a Six‐Year Plan (2006‐12) that included enrollment growth of 1,100 additional undergraduate students. By 2010, U.Va. had increased undergraduate enrollment by 614 students over 2005. This increase included 417 in‐state students. Per §23‐38.87:14.B. of the Virginia Higher Education Opportunity Act of 2011, “The Governor shall consider and recommend as he deems appropriate and the General Assembly shall consider and provide as it deems appropriate additional general fund appropriations to address the unfunded enrollment growth that occurred between the 2005‐2006 fiscal year and the enactment of this chapter.” U.Va. requested $3,480,000 (417 in‐state students * $8,346 state support per in‐state student based on the 2010 base budget adequacy formula) in general funds in each year of the 2012‐14 biennium and going forward to support enrollment growth that occurred between 2005 and 2010. To date, this request has not been funded by the General Assembly. Priority 32 – Restructuring of Graduate Programs The Graduate School of Arts and Sciences (GSAS) continued to implement the restructuring of its graduate programs with the goal of improving quality, enhancing recruitment, and increasing the competitiveness of individual programs. 2012‐13 represented the second year of restructuring with a focus on STEM disciplines. Restructuring has focused on reducing cohort sizes, enhancing financial support, and more active use of metrics to monitor success (e.g. admission strength and demand, completion rates, placement rates, etc.) Priority 33 – Center for the Advanced Study of Teaching and Learning (CASTL) The Center for the Advanced Study of Teaching and Learning (CASTL), as well as its postsecondary counterpart (CASTL‐HE), was identified as an institutional priority during the last strategic planning process. CASTL‐HE has also emerged as an institutional priority in the current strategic planning process Attachment A - 40
to enhance the University’s leadership with respect to the assessment of student learning. Select initiatives of CASTL and CASTL‐HE, which included a reallocation of funding, include:  Continuing development of the Center on Education Policy and Workforce Competitiveness;  Building a multi‐school STEM education center;  Developing a data services initiative with the University Library and the College of Arts and Sciences to support research in the social sciences; and  Enhancing CASTL‐HE partnerships throughout the University to increase assessment of student learning within University programs. Priority 34 – Rolls‐Royce Partnership The Commonwealth Center for Advanced Manufacturing (CCAM), a new 62,000 square foot research facility, held its grand opening event in March 2013. CCAM is a public‐private collaborative research center that undertakes research critical to the surface technology and advanced manufacturing industries. CCAM currently has 15 industrial partners and three university members. The physical facility is owned by the University of Virginia Foundation. Construction was financed with a $2.5 million grant from the Virginia Tobacco Indemnification and Community Revitalization Commission, a $4 million grant from the federal Economic Development Administration, and a portion of $15 million in state Recovery Act bonds. U.Va. has hired seven of eight faculty identified in the original recruitment plan into multiple departments and is in the final stages of recruiting the eighth faculty member. Over the past three years, U.Va. has received nearly $10.5 million in sponsored research funding in support of the Rolls‐Royce initiative awarded to 13 different principal investigators. Priority 35 – Partnership with the Defense Intelligence Agency (DIA) U.Va. secured a facility clearance from the federal government to expand its research capabilities. In addition, a director was hired to lead the University’s Applied Research Institute (ARI) and pursue additional funding, internship, and training opportunities. Priority 36 – Accelerated Graduate Programs As the University looks to expand the 3+1 program, as well as implement efficiencies in academic programs, it has been reviewing the duration of a number of graduate programs. The McIntire School of Commerce experienced savings of $70,000 when it condensed the Northern Virginia section of the M.S. in Management of Information Technology from 16 to 12 months. The Curry School of Education reallocated $25,000 to shift from a 9‐month to a 12‐month teaching model in support of more timely degree completion. In addition, the Graduate School of Arts and Sciences is exploring the development of one‐year professional master’s degree programs in chemistry, environmental sciences, French, and religious studies. Priority 37 – Veterans Services In 2011‐12, the University hired a veterans’ affairs coordinator to serve the needs of students who are members/veterans of the uniformed services. This individual, housed in the Office of the University Registrar, assists military‐related students and ensures compliance with guidelines, rules, and regulations set forth by the U.S. Department of Veterans Affairs and other regulatory agencies. Attachment A - 41
In addition, an associate dean in the Office of the Dean of Students has been charged with serving as the primary student services resource for student veterans. This position assists veterans by serving as a triage point for a broad range of issues and concerns with which they may present. The Office of the Dean of Students also is collaborating with a researcher in the Curry School of Education (whose research interest pertains to veterans and their families) to develop content for a comprehensive veteran’s information Web site. This Web site, when complete, will house student services, compliance and benefits, and regional and national resources for student veterans and their families. The University is an active participant in SCHEV’s Military Education Advisory Committee (MEAC). In May 2013, the Board of Visitor’s passed Guidelines on Priority Course Enrollment for Military‐Related Students. Each year, the University provides, to the Department of Veterans Services, an overview of its activities that support the goals of Executive Order 29 (Serving Virginia’s Veterans). Priority 38 – Academic and Administrative Efficiencies The University continued its efforts to achieve academic and administrative efficiencies. The following represent select examples of savings achieved – and generally reallocated to other school/unit priorities – or costs avoided:  Health Plan Modifications – $1.4 million. o Comprehensive wellness program to improve employee health through education, wellness activities, goal setting, outreach programs and referrals, and monetary incentives. o Implemented tobacco cessation and chronic disease management programs. o Completed pilot dependent eligibility verification audit and in the process of conducting a full audit to ensure only eligible dependents are covered by the U.Va. Health Plan.  Reorganization o The Curry School of Education redirected resources from low‐productivity programs to higher demand programs – $342,000. o Vacant positions – $1.1 million. o Merger of positions – $128,000. o Activities previously outsourced retained internally, such as external mailing, HVAC maintenance, and biosafety equipment certification – $163,000. o Sunset an institute – $290,000. o Reduced services, such as discontinuing Saturday morning clinics at Student Health and discontinuing clinics between Christmas and New Year’s Day – $65,000. o Optimize occupancy of University‐owned space and reduce dependency on commercially leased space – $391,000.  Conservation o Recycling efforts result in the sale of recyclable material and avoidance of trash collection – $530,000. o Energy conservation and retro commissioning of inefficient, high‐energy buildings – $4.8 million.  Procurement o Recoveries from procurement transactions, including rebates, catalog and logo sales, and sales volume discounts – $1.6 million. o Negotiated contract savings. For example:  Voice infrastructure trunking service – $490,000. Attachment A - 42
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 Benefit vendor contracts – $500,000.  Life insurance premium reductions – $1.3 million.  Beverage contract – $130,000.  Consolidation of retirement vendors – $600,000.  Videographer for online courses – $175,000. Outsourcing surplus property operations – $109,000. Conversion of 103 non‐catalog vendors to electronic purchase order delivery, thereby eliminating the manual delivery of 5,400 orders to these vendors, which will save staff time and expedite orders. Priority 39 – Southwestern Virginia Economic Development Partnership This partnership, commonly known as the Appalachian Prosperity Project (APP), continued during 2012‐
13. The partnership uses a systems approach to simultaneously advance the inextricably linked fields of education (Appalachians Building Capacity), health (Healthy Appalachia Institute), and prosperity (Appalachian Ventures). Select examples of successes during 2012‐13 include:  Helped to secure $1 million in new funding to bring programs and services to the residents of Southwest Virginia. Over the past four years the total is $10.9 million. This includes funding to create the University’s “Cancer Center Without Walls” to extend U.Va. Health System resources into the region, for downtown revitalization efforts in the Town of Appalachia, and advancing the Clinch River Valley Initiative to bring new economies to the region.  Created a research center that provides evidence‐based research to Planning Districts 1 and 2 to guide community economic development strategy, inform priorities, assess impact, and create a compelling asset‐based narrative that helps attract new jobs to the region.  Continued the specialty clinical services and health education of the U.Va. Office of Telemedicine throughout Southwest Virginia using an extensive network of telemedicine sites. There are now more than 25 active telemedicine sites in the region, with a substantial growth in providing child and family psychiatric resources. With support from the Tobacco Commission, U.Va. updated the aging technology at three sites to establish what is emerging as a state‐of‐
the‐art high definition network. In addition, two new clinics were offered in Southwest Virginia ‐ one for cystic fibrosis and one for ostomy patients.  U.Va., the College at Wise, and the Southwest Virginia Public Education Consortium (SVPEC, comprised of 16 school systems) continued to work together to improve knowledge of traditional American history on the part of the region’s teachers and children. This year saw the completion of one federal “Teaching American History” grant, continuing work under the auspices of another, and a joint $2.4 million proposal by U.Va. and SVPEC to extend such work in the region in other subject areas.  Created a regional blueprint for a vibrant entrepreneurial community in Southwest Virginia using input from over 50 people representing 37 organizations during a series of workshops. The blueprint identifies strategies that will accelerate growth for both new ventures and established companies and to lay the groundwork for future investments by external agencies. Recognized by the following: o The National Association of Development Organizations (NADO) awarded APP with the NADO 2012 Innovation Award. o The APP‐authored "Blueprint for Entrepreneurial Growth and Economic Prosperity in Southwest Virginia" was cited by the Governor's Rural Jobs Council as a model for rural entrepreneurship that should be replicated across the Commonwealth. Attachment A - 43
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The Center for Telehealth at U.Va. was selected as the first member of Cisco's new Healthcare Center of Excellence program, in part for their innovative work and extensive health coverage in Southwest Virginia. Each September, the University provides, to the Commonwealth, an annual report detailing the partnership’s scope of activities over the previous year. Priority 40 – Increased Utility Costs FY13 E&G utility expenses are six percent lower than FY12, a reduction of $2.1 million. The savings are attributable to four major factors: (1) the FY13 average utility rate did not increase over FY12; (2) FY13 natural gas prices were nine percent lower than originally projected, resulting in lower heating costs; (3) FY13 cooling degree days were five percent lower than FY12, resulting in lower cooling costs; and (4) extensive energy conservation efforts. Priority 41 – Unavoidable Contractual Cost Increases As reflected in the 2012‐13 Six‐Year Plan, the University experienced unavoidable contractual increases in rent, E‐911, fire services, and other high‐priority needs. Priority 42 – Incremental Tuition Revenue, Endowment Income, and AccessUVA In 2010‐11, the University used non‐recurring endowment income to fund an unusually large increase in financial aid from 2009 to 2011 due to the growing number of University undergraduates demonstrating need. The University met its commitment to these students, but with one‐time balances. Over a three‐ year period, the University will need to transfer the ongoing obligation for this undergraduate need‐
based aid to a sustainable funding source, most likely tuition. The first transfer of $1.85 million occurred in 2012‐13. The 2013‐14 operating budget includes an additional $1.5 million funded from tuition even though the total investment from institutional funds remains the same as in 2012‐13. Priority 43 – Strategic Institutional Priorities Funds generated from lower than anticipated fringe benefit and utility rates were set aside to provide funding for the University’s highest priority of addressing faculty compensation in FY14. Commonwealth Center for Advanced Logistics Systems (formerly the Virginia Logistics Research Center) SCHEV has asked that the Commonwealth Center for Advanced Logistics Systems (CCALS) be submitted as a separate report because it involves multiple institutions. Longwood University has taken responsibility for drafting the report. In 2012‐13 the University invested $240,000 in HEOA funding, with $150,000 of that amount continuing as base budget support in 2013‐14 and beyond. The separate report describes the progress made in the Center’s first year of operation. Attachment A - 44
E. Capital Outlay Capital projects proposed in the Six‐Year Plan, with significant strategic impact, include those helping to address 1) enrollment growth and STEM‐H learning, and 2) investment in the maintenance of facilities. Enrollment Growth and STEM‐H A number of projects in the six‐year capital outlay program are planned as part of a strategic response to increases in the University’s undergraduate enrollment and changes in its academic and research enterprise and its business practices. Projects in this group include: Gilmer Hall and Chemistry Building renovations (2012‐14 and 2014‐16), Science and Engineering Teaching and Research Facility (2016‐18), Physics Building renewal (2018‐20), Thornton Hall D‐Wing and B‐Wing renovation (2018‐20), and in a contributing manner Alderman Library renewal (2014‐16). The Alderman Library renewal project will strengthen the University Library’s support of education and research by increasing the amount of study space and by providing enhanced technology. While Alderman Library provides approximately 14 percent of the building for individual and group study space, 25 percent is the standard for a research library. Growing enrollments and the expanding STEM‐H offerings will hinder further the Library’s efforts to respond to the increasing demands. The library houses a robust technology center that supports research in both the humanities and STEM‐H disciplines, but the building’s current infrastructure has been stretched to the limit, and is hard pressed to meet the high energy and cooling demands of these spaces. The University has undertaken an integrated planning effort to develop a strategy for these projects under the rubric of “Planning for Science, Technology, Engineering, Mathematics, and Healthcare (STEM‐H) Facilities.” The purpose of the STEM‐H planning effort is to define and articulate a common understanding of STEM‐H learning and research goals for U.Va., and to identify, through facilitated conversations, collaborative and interdisciplinary program development strategies. The proposed planning process will insure that adequate consultation with constituent groups and/or stakeholders takes place and that appropriate standards for the use of University resources are developed and applied. The STEM‐H planning study will address and develop facility responses to the following significant challenges:  Increased enrollment. The University has committed to undergraduate enrollment growth of 1,673 students between fall of 2010 and 2018, of which 390 will go to the School of Engineering and Applied Science and roughly 817 to the College of Arts and Sciences. In addition the College will provide STEM‐H course hours to non‐art and sciences students equivalent to an additional enrollment of 200. Forecasts indicate the added enrollment cannot be accommodated by continuing to teach in the same way in the present facilities.  Increased undergraduate demand for STEM‐H courses. The share of enrollment growth going to majors in the STEM‐H disciplines has increased significantly over the last five years and the trend is expected to accelerate as the 1,673 growth commitment is realized. Increasing demand for STEM‐H will exacerbate pressure to increase the capacity of teaching facilities and develop alternate pedagogies.  STEM‐H faculty retirements, replacements, and new hires. The College of Arts and Sciences anticipates more than 50 replacement hires and roughly 25 new hires by 2018, while the School of Engineering and Applied Science anticipates 60 replacement hires and 28 new hires. New Attachment A - 45
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faculty will need sufficient, quality lab space for aggressive research programs, making it urgent that the research space has adequate infrastructure and be configured to allow efficient allocation. Pedagogy, technology, and curriculum. Some STEM‐H faculty are already testing and adopting pedagogies, many of them technology‐enabled, which facilitate more effective learning or greater class size, or both. Project‐based labs, lectures punctuated with group learning breakouts, virtual lab experiments, and synchronous distance participation in class are all in use at small scale by individual faculty. At the dean and department chair level, planning efforts have begun to adapt curriculum to larger enrollments in the STEM‐H fields and to test and scale‐
up adoption of emerging pedagogies and technologies where the evidence supports it. These advances will change the kind and quantity of spaces needed for instruction, class laboratory sections, team learning, and individual class work; and facilities need to be planned accordingly. Facility condition and configuration. Thornton Hall, the Physics Building, Gilmer Hall, and the Chemistry Building, date from the 1930s, 50s, and 60s. Together, they constitute roughly 800,000 GSF of space, and house electrical engineering, civil/environmental engineering, and materials science and engineering, physics, biology, psychology, and chemistry departments, as well as a variety of core facilities, classroom laboratories, and instructional classrooms. o Infrastructure: Much of the mechanical, electrical, and plumbing systems in the buildings is original or at the end of its useful life. These older systems are energy intensive (Gilmer and Chemistry consume $4 million in combined energy use each year), are stretched past their designed limits, lack flexibility and capacity for increased demand and are at risk of failure. Most importantly, key systems: electricity, steam, air and exhaust, lack capacity or reliability to support research. The buildings have become a major limiting constraint on the research of the departments they house. o Configuration: Much of the research and teaching space in these buildings is in its original configuration and poorly suited for present uses. Labs tend to be separate rooms offering little opportunity for collaborative work or flexible space assignment. Many teaching labs are sized wrong for present section numbers and have no provisions for technology, team learning, or multiple instruction methods. o Supply: The 390 additional students in the School of Engineering and Applied Science represent a roughly 17 percent increase over their 2010 enrollment, with an anticipated increase of 28 faculty. In the College of Arts and Sciences, the new enrollment creates an anticipated 40 percent increase in STEM‐H students between 2011 and 2019 and faculty hires will increase STEM‐H faculty by 20 to 25. The space needs will be significant, and the University is challenged to maximize efficiency and flexibility in its use of the space in these existing STEM buildings. The STEM‐H study has been formulated around a goal of integrated planning, and some key themes have emerged as having primary importance:  Academics drive planning. Although the deliverable of this study will be a roadmap of facility projects, and the facility issues are complex and important; the academic needs of enrollment growth, hiring, pedagogy, and technology will be the drivers of what spaces are needed and how they will be used. Facility planning and academic planning must advance in tandem.  Engage multiple schools of the University. Issues of undergraduate STEM‐H instruction and faculty research extend over multiple schools: The College of Arts and Sciences and the School of Engineering and Applied Science are the dominant providers of instruction. Students in engineering, education, nursing, architecture, and medicine also use the basic science courses Attachment A - 46
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provided by the College of Arts and Sciences. Opportunities for collaborative research exist between all the schools of the University. The planning process will center on the College of Arts and Sciences and the School of Engineering and Applied Science, but will engage the other schools too. Engage with the schools’ planning for enrollment growth, pedagogy, and technology. Planning is at different stages in the various schools and ranges from well‐organized initiatives of the dean’s office to individual faculty practice and research. The STEM‐H study should engage widely and facilitate advancing plans for academic as well as facility issues. Emphasize collaboration. It is a distinguishing aspect of the undergraduate experience and a key strategy for how U.Va. will compete as a research university, despite its relatively small size. Designing for collaboration is a guiding principle. Develop robust data to inform planning decisions. The relevant data for this study are unusually complex. It involves multiple schools, multiple buildings, measures of both the instruction and research enterprise, and many areas of change. The University launched the STEM‐H study in May 2013 and expects to complete it by calendar year end. Investment in Maintenance of Facilities Recent capital initiatives funded by a combination of state funding and/or gift funds include the Ruffner Hall renovation, New Cabell Hall renovation, Rotunda restoration, and maintenance reserve. Continued investment in maintenance of aging facilities is reflected in the 2014‐20 six‐year capital outlay plan. The University’s board‐approved capital plan includes a $125 million multi‐year Jeffersonian Grounds Initiative to address building, site, and infrastructure needs of the Academical Village. The Academical Village is the "heart" of the University. It is listed on the Virginia Landmarks Register, is a National Historic Landmark, and is listed by UNESCO, with Monticello, as a World Heritage Site. The project continues and accelerates the renovation, restoration, and repair program initially begun in the late 1980s. The current Rotunda renovation project is the most recent in this program. While the University has made significant progress with its stewardship of the Academical Village, it has become clear that an accelerated program is a significant component of the strategic response to strengthen a distinctive residential culture and attract the highest quality faculty. A major private fundraising effort is planned to support the work that needs to be done in the Academical Village. Recognition by the state of the special needs to preserve the historic assets in the original Jeffersonian‐designed university would boost the ability to attract private support and to accomplish the work on a reasonable schedule. A suggested avenue might be a supplemental state maintenance reserve appropriation designated for the Academical Village renovation. Attachment A - 47
ATTACHMENT B
SUMMARY OF CAPITAL PROJECTS
FOR THE INTENT TO ISSUE TAX-EXEMPT BOND DEBT
ACADEMIC DIVISION
North Grounds Mechanical Plant - This project completely
replaces all equipment at the North Grounds Mechanical Plant,
which consists of two 15 MMBTUH boilers and two 800-ton
chillers, as well as their accompanying auxiliaries, with
adequate capacity to meet current and anticipated minor growth
in the North Grounds precinct. The current chillers and boilers
are over 33 years old and significantly exceed the twenty-year
typical life. Over the past few years, the boilers and chillers
have experienced increasingly higher rates of failure. The
project will upgrade the plant to current code requirements
including the physical separation of boilers and chillers and a
state-of-the-art refrigerant detection and oxygen monitoring
system.
Alderman Road Residence Area, Bldg. 6 - This building will be
five stories, 74,898 gsf, and will include 211 beds, common
space, and an office wing. Housing and Residence Life staff
currently located in 24,400 square feet distributed across five
buildings in the McCormick Road housing area will be
consolidated at this site making them more accessible to
students. Debt for this project will be paid with housing
revenues and is included in Housing and Residence Life’s tenyear pro forma.
Facilities Management Shop/Office – The project will construct a
two-story, 14,000 gsf facility, to the west of the Leake
Building at 575 Alderman Road. The building will be a simple
structure consisting of shop support space and office space for
Facilities Management employees replacing 11,635 gsf currently
in leased space and in trailers which are substandard, all of
which will be vacated. It provides for more modern and
efficient shop and office space, supporting a larger effort to
update workspace, reorganize the yard providing much needed
parking and staging for service vehicles and changes in work
flows.
Rugby Road Office Building - This project will renovate 25,000
gsf of the old faculty apartment building on Rugby Road into
usable office space. The proposed project would rehabilitate
Attachment B - 1
the vacant space providing needed office administrative space,
and allows for flexible office space and conference rooms on
each floor. The rehabilitation includes replacement of HVAC,
electrical and plumbing systems, installation of security and
fire suppression systems, abatement of hazardous materials,
installation of an elevator and entrance accessibility
improvements.
MEDICAL CENTER
Ambulatory Practice Space - Carried forward from the current
Capital Plan, this umbrella renovation authorization will enable
the Medical Center to move more expeditiously to renovate
outpatient facilities in response to federal healthcare
legislation and its subsequent effect on the healthcare market
in this region of the State. The projects to be completed under
this umbrella will span a seven-year timeframe consistent with
the duration of the Medical Center Long Range Plan.
Education Resource Center - The Education Resource Center
project provides approximately 30,000 to 35,000 gsf for graduate
medical and patient education, a relocated outpatient pharmacy,
and an outpatient imaging center. It replaces a project of
limited scope included in the current approved plan. These
functions are directly responsive to the Health System’s stated
mission to provide excellence and innovation in the care of
patients, the training of health professionals and the creation
and sharing of health knowledge. It provides new conferencing
space for resident and patient education and much needed
dedicated resident workspace. The project site is adjacent to
the Emily Couric Clinical Cancer Center and the new elevator and
stair tower for the Lee Street Garage, providing convenient
access to the pharmacy for patients and staff leaving the
Medical Center via the 11th Street or Lee Street garages. In
addition, this project provides space for a new outpatient
imaging center that significantly improves patient access and
fulfills the need for diagnostic imaging services convenient to
the Couric Cancer Center and the Battle Building. This new
center, located in the lower level, will connect directly with
the Couric Cancer Center.
Attachment B - 2