UNIVERSITY OF VIRGINIA
BOARD OF VISITORS
MEETING OF THE
FINANCE COMMITTEE
SEPTEMBER 20, 2005
FINANCE COMMITTEE
Tuesday, September 20, 2005
11:00 a.m. – 1:00 p.m.
Board Room, The Rotunda
Committee Members:
W. Heywood Fralin, Chair
A. Macdonald Caputo
Alan A. Diamonstein
Georgia Willis Fauber
Mark J. Kington
Warren M. Thompson
John O. Wynne
Thomas F. Farrell, II, Ex-officio
AGENDA
PAGE
I.
ACTION ITEMS (Mr. Sandridge)
A.
State Operating Budget Submission for the 20062008 Biennium (Mr. Sandridge to introduce
Ms. Colette Sheehy; Ms. Sheehy to report)
B.
Intent to Issue Bonds
C.
Short-term Loan for the Construction of the John
Paul Jones Arena
•
Fiscal Impact Statement
II. REPORTS BY THE EXECUTIVE VICE PRESIDENT AND CHIEF
OPERATING OFFICER (Mr. Sandridge)
A.
Vice President’s Remarks
B.
Annual Report on the UVa Health Care Plan and
Review of University Benefits (Mr. Sandridge
to introduce Ms. Yoke San L. Reynolds; Ms.
Reynolds to report)
C.
Endowment Report: Market Value and Performance
as of June 30, 2005 (Mr. Sandridge to introduce
Mr. Christopher Brightman; Mr. Brightman to report)
D.
Miscellaneous Financial Reports
1.
Academic Division Accounts and Loans
Receivable
2.
Expenditure of Funds from Pratt Estate
3.
Internal Loans to University Departments
and Activities
4.
Quarterly Budget Report
5.
Quasi-Endowment Actions
6.
Endowment/Investments for UVa and Related
Foundations
1
8
11
13
15
16
18
27
29
30
31
35
37
7.
8.
Salary and Compensation for Full-Time
Faculty
Sponsored Program Restricted Grants and
Contracts
PAGE
38
46
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
I.A.
2006-2008 Biennial Budget Submission
BACKGROUND: Every two years, the University submits its
biennial budget requests to the Department of Planning and
Budget in Richmond for review by the Governor for inclusion in
his budget proposal, which will be presented to the General
Assembly on December 16. The 2006-2012 Capital Plan, approved
by the Board last April 2nd, was submitted to the Commonwealth
on May 13th. The 2006-2008 operating budget requests will be
submitted to the Commonwealth by September 15th, subsequent to
the mailing of these materials, but prior to the meeting of the
Finance Committee.
DISCUSSION: The discussion will focus on any changes in the
final submission to the Commonwealth from the amendments listed,
address any Board questions regarding the amendments, and
identify amendments in the Board requests that we withdraw items
from consideration. Depending on the outcome of the Governor’s
budget process, we may want to submit these amendments, and
possibly others, at the General Assembly session which begins in
January. Any requests not included on this list that might be
submitted to the legislature will be communicated to the Board
in advance of the due date with formal approval sought at the
February meeting of the Board.
Operating amendments for the Academic Division (Agency 207)
total $12.2 million general funds [GF] and $28.9 million
nongeneral funds [NGF] in year one (2006-2007) and $19.5 million
GF and $52.8 million NGF in year two (2007-2008). Capital
amendments for the Academic Division total $10.2 million NGF for
the biennium. Operating amendments for The University of
Virginia’s College at Wise (Agency 246) total $3.3 million GF in
year one and $2.9 million GF in year two. Capital amendments
for the College at Wise are $1.1 million GF and a net $17.9
million NGF for the biennium. Operating amendments for the
Medical Center (Agency 209) total $14.8 million GF and $14.8
million NGF in year one and $21.9 million GF and $21.9 million
NGF in year two. Capital amendments for the Medical Center are
$25 million GF and a net $53.0 million NGF for the biennium.
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AGENCY 207 – Academic Division:
Virginia 21st Century Medicine Research Fund ($6.3 million GF,
$6.9 million NGF, and 28 FTEs in year one and $6.3 million GF,
$6.9 million NGF, and 43 FTEs year two) – This investment will
support the eradication of disease using state-of-the-art
principles of regenerative medicine and molecular drug discovery
by attracting scientists prominent in the fields of Drug
Discovery and Regenerative Medicine, constructing necessary
facilities and laboratories, and supporting partnerships with
industry to facilitate the rapid development of diagnostics and
therapeutic compounds.
Virginia COMPETES ($1.75 million GF and 7 FTE in year one and
$3.0 million and 12 FTEs in year two) – The COMmonwealth
Partnership for Engineering Transformation and Economic Success
is a proposal to increase the state’s global competitiveness and
economic prosperity through a multi-faceted education initiative
that draws together the University’s School of Engineering and
Applied Science, Curry School of Education, and McIntire School
of Commerce to develop engineering educated math and science K12 teachers and to establish an engineering innovation
curriculum.
Invest in Research Enterprise by Improving Graduate Stipends
($2.5 million GF in year one and $5.0 million GF in year two) –
This request will increase average net stipend levels to the
cost of living expenses in Charlottesville ($16,100 in 2004-05)
over the next four years, comparable to those currently offered
by peer institutions today.
Provide Maintenance and Preservation Funding for Historic
structures ($500,000 GF in year one and $2.0 million GF and 11
FTEs in year two) – This request is to provide funding to
maintain and preserve one of the nation’s most eminent
collections of historic buildings and landscapes. These special
facilities require a level of care and preservation above and
beyond that level of support provided for via the Commonwealth’s
calculation of operating and maintenance needs through the base
budget adequacy model.
Supplement Energy and Utilities Funding ($416,000 GF in year one
and $874,000 GF in year two) – The cost of natural gas, coal,
and oil for heating University facilities has increased by
approximately 30 percent over the past 3 years necessitating
this request for supplemental funding.
2
‘Hoos Getting Started’ Summer Transition Program ($186,300 GF in
year one and year two) – Hoos Getting Started is a summer bridge
program for 30 Access UVa students. The program includes a
welcome session, a resource guide, enrollment in two summer
session courses, weekly workshops, academic planning meetings,
cultural events, weekly dinners with University faculty and
administrators, and four fall workshops. The program will ensure
that the students experience a smooth transition and achieve
academic success at the University.
Provide Funding for Operations and Maintenance Costs at New
Facilities ($76,400 GF, $234,200 NGF and 2.0 FTEs in year one
and $1.5 million GF, $2.2 million NGF and 54 FTEs in year two) –
Request support for operations and maintenance costs of new
facilities scheduled to open in the 2006-08 biennium.
Provide Comparable Funding for UVa Health Plan ($165,718 GF and
$235,535 NGF in year one and year two) - Requests support to
maintain the state’s funding of the University-sponsored health
care plan at a comparable level to the state funding provided
for other state-sponsored health plans.
Support Blandy Farm, the State Arboretum ($145,000 GF and 2 FTEs
in year one and $290,000 GF and 6 FTEs in year two) – Funding is
requested to increase the quality and capacity of K-12
Environmental Education programs, greatly improve the condition
of the plant collection, and increase visitor learning
opportunities.
Support the Online Virginia Encyclopedia and Virginia Folklife
Program ($250,000 GF and 3 FTEs in year one and year two) – This
support will enable the Virginia Foundation for the Humanities
to implement the Online Virginia Encyclopedia, a multi-year
project, and to expand the Virginia Folklife Program, a longstanding program of VFH.
Amend Family Practice Language (language only) – Exempt family
practice general fund appropriations from future general fund
budget reductions as provided previously for Virginia
Commonwealth University (VCU).
Amend Generalist Medicine Language (language only) – A joint
request with VCU and the Eastern Virginia Medical School to
update generalist medicine language to reflect the inclusion of
this initiative into core curricula at the three medical
schools.
3
Amend Medical Education Language (language only) – A joint
request with VCU to properly reflect that funding is used for
undergraduate medical education.
Adjust non-general fund appropriation for Educational and
General ($20.3 million NGF and 65 FTEs in year one and $39.3
million NGF and 125 FTEs in year two) – A request to support
projected increases in tuition revenues expected at the
University over the next two years based upon the Six Year
Financial Plan to be submitted to SCHEV on October 1, 2005.
Adjust non-general fund appropriation for Student Financial Aid
($1.2 million NGF in year one and $4.1 million NGF in year two)
– A request to support projected increases in student financial
aid funded from tuition – primarily related to the
implementation of Access UVa - expected at the University over
the next two years based upon the Six Year Financial Plan to be
submitted to SCHEV on October 1, 2005.
Supplement Cavalier Substation ($900,000 Higher Ed Operating
Funds) - Supplement to accommodate cost increases.
Supplement Medical Education Building ($9.3 million Gifts) Supplement to accommodate programmatic changes and cost
increases.
AGENCY 209 – Medical Center:
Adjust Indigent Care Reimbursement ($13.6 million GF and $13.6
million NGF in year one and $20.6 million GF and $20.6 million
NGF in year two) – Increase reimbursement for healthcare
provided for Medicaid and qualified indigent patients.
Adjust Indigent Care Guidelines ($1.17 million GF and $1.17
million NGF in year one and $1.23 million GF and $1.23 million
NGF in year two) – A joint request with the VCU Health Authority
to increase guidelines related to qualified indigent patients to
300 percent of poverty level versus the current definition of
200 percent of poverty level.
Cancer Center – ($25.0 million GF) – Request a state investment
of $25 million in the Cancer Center to be constructed at the
University of Virginia Medical Center. The balance of the
funding will come from private gifts and hospital revenues.
4
Hospital Bed Expansion ($60.0 million bonds and $18.0 million
hospital operating revenues) – Involves the infill of the
hospital’s upper level “porches” to create rooms for 129
inpatient beds and 2) the replacement of the hospital’s major
infrastructure systems, which were installed when the hospital
was completed in the late 1980s and are approaching the end of
their useful lives. Project is necessary to address a 110 bed
shortfall projected by 2013.
AGENCY 246 – University’s College at Wise:
Support Student Enrollment Growth ($1.7 million GF and 37 FTEs
in year one and $1.785 million GF and 37 FTEs in year two) Support for additional faculty and classified staff to allow the
College at Wise to support the student enrollment increases of
35.2 percent from fall 2000 to fall 2005. Fall 2005 enrollment
is ahead of projected enrollment growth recently approved by
SCHEV. Faculty will be added in the areas of teacher education,
nursing and business where enrollment increases have stretched
departments limiting diversity in course offerings. The
additional classified positions will allow the College at Wise
to improve service and support for facilities and to faculty and
students, handling operational growth and addressing historical
shortfalls in staffing. Recent funding provided by the
Commonwealth has been used to address critical academic areas to
insure students have access to the classes they need.
Develop Software Engineering Program ($808,000 GF and 9 FTEs in
year one and $850,000 GF and 9 FTEs in year two) - To complement
a regional goal of technology-based employment growth, the
College at Wise has conducted a feasibility study which
demonstrates the viability of adding an accredited Software
Engineering program. Development of this program will allow the
College at Wise to serve a regional need and significantly aid
the area economy.
Supplement Utilities Funding Due to Extraordinary Cost Increases
($250,000 GF in year one and $260,000 GF in year two) – Natural
gas prices have risen 53 percent over the previous year. The
College at Wise also has experienced a 33 percent increase in
the cost of water and sewer service.
Campus Network Infrastructure System Renewal ($550,000 GF in
year one) – This project will renew the campus wide IT
infrastructure with the replacement of network switches, fiber
and monitoring systems.
5
Supplement Drama Building ($4.0 million Gifts) - Supplement to
accommodate donor-funded programmatic enhancements.
Accelerate Housing/Add Dining ($15.0 million NGF) – This project
will allow the College at Wise’s growth to continue by
developing additional on-campus housing and a new dining
facility. The current year enrollment is over 8.5 percent
higher then the same period last fall, and 14.5 percent ahead of
two years ago. To continue to meet the needs of students
attending the College at Wise, additional housing must be
developed. Because of existing space limitations, the addition
of this residence hall will require that new dining and food
preparation space be developed. The current facility is not
feasible for expansion.
Acquire Buffer Properties ($1.1 million GF) – Request that the
State provide $1.1 million in GF in lieu of the current NGF
authorization to acquire three buffer properties (approximately
20 acres) adjacent to the College at Wise that will provide
suitable land for possible future expansion of the College at
Wise.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
APPROVAL OF 2006-2008 BIENNIAL BUDGET REQUEST FOR THE ACADEMIC
DIVISION, THE MEDICAL CENTER, AND THE UNIVERSITY OF VIRGINIA’S
COLLEGE AT WISE
WHEREAS, the University’s 2006-2008 biennial budget request
has been reviewed carefully; and
WHEREAS, the biennial budget request represents the highest
priority initiatives and is aligned with the mission of the
institution;
RESOLVED that the Board of Visitors of the University of
Virginia endorses and supports the 2006-2008 biennial budget
request; and
RESOLVED FURTHER that the Board of Visitors understands
that to the extent these initiatives are not included in the
Governor’s 2006-2008 biennial budget, the Academic Division, the
Medical Center, and The University of Virginia’s College at Wise
may want to pursue similar requests to the legislature; and
6
RESOLVED FURTHER that the Executive Vice President and
Chief Operating Officer 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.
7
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
I.B.
Intent to Issue Bonds
BACKGROUND: All capital projects that require debt financing
must be presented to the Finance Committee for approval of
intent-to-issue resolutions. Federal regulations require this
declaration for projects that seek to utilize tax-exempt
financing. An intent-to-issue resolution states the
University’s expectation to issue bonds so that it may reimburse
itself for expenditures associated with specific, enumerated
projects.
This action will also permit the University, where
appropriate, to provide short-term financing for the project
under the University’s commercial paper program. Short-term
financing will be provided only if a capital project is
accompanied by a business plan documenting its fiscal soundness
and if it obtains approvals from senior management. This
resolution does not authorize the University to actually issue
long-term bonds for this project. Prior to issuing and
incurring long-term debt, the Board will be asked to approve a
separate debt issuance resolution. An appropriate fiscal impact
statement with comments on each project’s financial
considerations also will be provided at that time.
The University is presenting the capital project listed
below for the Board’s consideration under this intent-to-issue
resolution:
Project
Medical Center – Hospital Bed Expansion
Project to increase inpatient bed capacity
Total Intent to
Issue
(in $000’s)
$60,000
DISCUSSION: The Medical Center has undertaken a bed need
analysis which indicates a shortfall of approximately 110 beds
by calendar year 2013. The Medical Center clinical staff has
identified inpatient bed capacity as its highest priority. The
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Medical Center seeks approval to increase inpatient bed
capacity. On September 1, the Medical Center Operating Board
approved the project. On September 16, the Buildings & Grounds
Committee will consider design guidelines for the project.
ACTION REQUIRED: Approval by the Finance Committee and the
Board of Visitors
APPROVAL OF INTENT TO ISSUE BONDS FOR CAPITAL PROJECTS
WHEREAS, the University intends to undertake the following
capital project with bond financing as a funding source:
Medical Center Bed Expansion Project to increase
inpatient bed capacity.
WHEREAS, the United States Department of the Treasury has
promulgated final regulations in Section l.l50-2 of the Treasury
Regulations (“the Regulations”) governing when the allocation of
bond proceeds to reimburse expenditures previously made by a
borrower shall be treated as an expenditure of the bond
proceeds; and
WHEREAS, the Regulations require a declaration of official
intent by a borrower to provide evidence that the borrower
intended to reimburse such expenditures with proceeds of its
bonds; and
WHEREAS, the Board of Visitors of the University of
Virginia desires to make such a declaration of official intent
as required by the Regulations; and
WHEREAS, the University may be required to provide shortterm financing to this project prior to issuing long-term debt
in order to implement an efficient and timely construction
schedule; and
WHEREAS, the University has funding mechanisms to
accommodate short-term financing needs, defined as a period of
less than sixty months; and
WHEREAS, the authority for the University to issue longterm bonds for this project listed is not included in this
resolution and will be addressed in a future bond issuance
resolution; and
9
WHEREAS, if the University arranges short-term financing
for a particular project, and if the project is not ultimately
completed, or if the project utilizes funding sources other than
bonds, then the appropriate school or unit remains responsible
for refunding the short-term obligation.
RESOLVED that, pursuant to the terms of the Regulations,
the University of Virginia declares its intent to reimburse
expenditures in accordance with the following:
1. The University reasonably expects to reimburse
expenditures incurred for this project from the issuance of taxexempt bonds to be issued by the University;
2. This resolution is a declaration of official intent
under Section 1.150-2 of the Regulations;
3. The maximum principal amount of bonds expected to be
issued for the purpose of reimbursing expenditures relating to
this project is $60 million, excluding costs of issuance and
premiums or discounts.
RESOLVED FURTHER, that this project is a separate
enterprise independent of other projects, and that the
authorization for funding relates to this individual project;
and
RESOLVED FURTHER, funds may be borrowed for this project on
a short-term basis, but only if the following conditions are
met:
1. The Board of Visitors approves this resolution;
2. A comprehensive and detailed financial plan for the
school/unit project is submitted;
3. Short-term financing shall not exceed sixty months in
maturity; and
4. The school or unit remains responsible for refunding any
debt obligations incurred for this project regardless of the
status of the capital project or whether or not a bond issuance
actually occurs.
10
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
I.C. Short-term Loan for the Construction
of the John Paul Jones Arena
BACKGROUND: The Board has approved a budget for the
construction of the John Paul Jones Arena at $129.8 million,
with $75 million to be financed from long-term bonds.
DISCUSSION: Current cash flow projections show the arena
project will require a short-term loan, or loans, to provide
interim financing in anticipation of the receipt of pledged
gifts. We anticipate the short-term loan requirements to be no
more than $20 million, in aggregate, for a term of no longer
than four years. The source of the short-term funds will be at
the discretion of the Vice President and Chief Financial
Officer. At this point, potential sources of funding include
Commercial Paper borrowings or funds from the University’s
Capital Renewal Pool or Internal Loan Program.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
APPROVAL OF A SHORT-TERM LOAN FOR THE CONSTRUCTION OF THE JOHN
PAUL JONES ARENA
WHEREAS, the John Paul Jones Arena Project requires shortterm funding in anticipation of the receipt of pledged donations.
RESOLVED that the Board of Visitors approves a short-term
loan, or loans, of up to $20 million for a term of up to four
years for the purpose of providing short-term financing in
anticipation of the collection of pledged gifts associated with
this project; and
RESOLVED FURTHER that the Executive Vice President and Chief
Operating Officer is authorized to execute all necessary
documents to effect the short-term loan(s).
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12
UNIVERSITY OF VIRGINIA
FISCAL IMPACT STATEMENT
PROJECT: Short-term bridge financing for the construction of
the John Paul Jones Arena
FISCAL IMPACT: Providing short-term funding in anticipation of
the receipt of pledged gifts will significantly reduce the
chance of temporary funding shortfalls delaying the Arena
construction. Any short-term funding will require the
University to incur incremental short-term financing costs.
These costs will be incurred either directly (e.g. by issuing
commercial paper) or indirectly as an opportunity cost (e.g.
funds currently invested will be redeployed for this project and
will fail to earn a rate of return). The source of funding will
be determined at the time of borrowing by taking into account
the cost of available funds and the impact on overall liquidity.
The current cost for short-term funds is between 2.2 percent and
2.7 percent.
CONCLUSION: Based on this assessment of fiscal impact, we
recommend the Board of Visitors approve the request for shortterm bridge funding for the John Paul Jones Arena. While a
complete analysis of the costs involved in a construction delay
is not included here, any delay would cause the University to
subject itself to increased construction costs (in both labor
and materials) and may result in the delay of project revenues
and the return anticipated on those revenues. Additionally, the
repayment of the short-term funding costs (and any long-term
borrowing costs) will come from revenues generated following
project completion. The utilization of short-term bridge
funding will allow these repayments to begin earlier than they
may have been absent the short-term funding.
RECOMMEND APPROVAL OF BOARD ACTION:
________________________
Leonard W. Sandridge
September 20, 2005
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14
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
II.A.
ACTION REQUIRED:
None
Vice President’s Remarks
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.
15
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
II.B. Report on the UVa Health Care Plan and
Review of University Benefits
ACTION REQUIRED:
None
BACKGROUND: The University will provide its regular annual
report on the status of the University’s self-insured health
care plan. In addition, the University will present preliminary
findings of a review of the benefits program for the academic
division to determine how the University’s benefits compare with
its peers.
DISCUSSION: The University, in discussion with employee benefit
consultants, regularly monitors its health insurance claims and
premiums, the adequacy of its reserves, and the outlook for
future health care costs. It is anticipated that health care
costs will continue to increase, but the University has slowed
the pace of increase through the implementation of strategic
cost control programs.
Effective January 2006, the University will adjust its
premiums to reflect increased plan costs. Rates will be set to
cover projected claims costs and to keep the reserve at an
appropriate level based on projected costs.
The University has completed the initial phase of an
assessment of its benefits by performing a side-by-side
comparison of key benefits with peers. Preliminary findings
show that that the University fares well when compared to its
peers in most core benefits areas, such as retirement, health,
life, disability, leave, and education benefits. The notable
outliers thus far include optional supplemental benefits for
faculty, employer-paid retiree health plan, education benefits
for spouses and dependents, and domestic partner benefits.
As part of the formation of the ten-year plan, the
University will consider the future direction of benefits at the
University and review new approaches to providing employees with
desired benefits. The University may consider offering some
16
individual employee discretion in selecting specific benefits
from a list of options in a “cafeteria” style plan.
A detailed report on the health plan and a review of
University benefits will be provided during the September 20th
Finance Committee meeting.
17
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
September 20, 2005
COMMITTEE:
Finance
AGENDA ITEM:
II.C. Endowment Report: Market value and
Performance as of June 30, 2005
ACTION REQUIRED:
None
BACKGROUND: The University of Virginia Investment Management
Company (UVIMCO) provides investment management 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
(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 to 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:
PERFORMANCE
The Pool’s assets increased by approximately $300 million
from $2.3 billion at fiscal year-end June 2004 to $2.6 billion
at fiscal year-end 2005 as investment returns of $335 million
and contributions of $48 million exceeded distributions and
withdrawals of $94 million. The Pool returned 14.3 percent for
the year, outpacing the target benchmark return of 12.6 percent,
and comfortably exceeding the return on inflation plus spending.
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Performance Summary June 30, 2005
Portfolio
14.3%
1-Year Return
3-Year Return
12.0%
5-Year Return
7.5%
10-Year Return
14.2%
Fiscal Year 2004 Return
Fiscal Year 2003 Return
Fiscal Year 2002 Return
12.7%
9.2%
-0.1%
Target Difference
12.6%
1.7%
10.6%
1.4%
4.2%
3.3%
9.2%
5.0%
15.2%
4.2%
-6.2%
-2.5%
5.0%
6.1%
The Pool’s strong return was achieved in a favorable if
unremarkable domestic capital market environment. The broad
U.S. equity market returned eight percent in a year notable for
its lack of consistent direction and low level of volatility.
Despite low starting yields, U.S. Government bonds also returned
eight percent as long-term yields declined despite steadily
rising short-term interest rates. Appreciating from lower
valuations, international equities provided the year’s best
public market returns. Developed international equities
returned 15 percent, and emerging markets returned 35 percent.
The Pool’s strong fiscal year return is primarily
attributable to manager selection strategy. The 56 percent
allocation to hedge funds returned 13.4 percent, the seven
percent allocation to U.S. equities returned 14.6 percent, and
the ten percent allocation to international equities returned
33.4 percent, versus eight percent on the Tremont Hedge Index,
8.1 percent for the Russell 3000 Index, and 16.9 percent on the
All Country World ex. U.S. Index. The 11 percent allocation to
private equity also contributed strong returns of 17.6 percent
for the year.
From a longer-term prospective, the Pool’s performance is
remarkable. Over the past ten years the Pool generated a 14
percent average annual compound return, compared to ten percent
for U.S. equities, six percent for international equities, and
seven percent for bonds. June 30, 2005 marks five years since
the beginning of the correction of the late 1990s equity market
bubble. Over that period, the Pool provided a 7.5 percent
average annual compound return, more than maintaining its
purchasing power after distributions, in an environment where
U.S. equities lost 1.4 percent per year and international
equities were up a modest 0.8 percent.
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UVIMCO's multi-year returns compare favorably with its Peer
Group. Over the three-, five-, and ten-year periods ending June
2004, the Pool's returns were in the top quartile of the Peer
Group of the largest higher education endowments. Peer returns
for the fiscal year ending June 30, 2005 will not be available
until late September 2005.
OUTLOOK
As often, the economic outlook is mixed. In the U.S.,
strong GDP growth, high corporate profit margins, moderate
inflation, and low bond yields are counter balanced by concerns
about an unsustainably low savings rate and the related current
account deficit, and by growing evidence of a bubble in
residential real estate.
Outside the U.S., Europe generally remains unable to find
the political consensus necessary to reform its product and
labor markets sufficiently to sustain growth. In contrast,
Japan finally shows signs of a genuine expansion with robust
corporate finance activity and rising real estate prices.
More importantly, China’s booming economy and huge physical
infrastructure development puts upward pressure on commodity
prices, while its enormous supply of labor puts downward
pressure on wages in the tradable goods sector and thereby
raises returns on capital. At the same time, China’s
underdeveloped and state controlled domestic capital markets
promote wasteful internal capital allocation and poor domestic
investment returns, leading to excess savings. Coming full
circle, China’s excess savings fund the U.S. capital account
surplus, lower global real interest rates, and inflate real
asset prices.
The outlook for the U.S. equity market seems sedate
relative to the boom, bust, and rebound of the past ten years.
With recent earnings gains outpacing prices, the market’s P/E
multiple based upon current, as reported earnings has declined
to 18 or an earnings yield of 5.5 percent. If these earnings
are sustainable, then U.S. equities would seem fairly priced
given a likely secular reduction in the equity risk premium,
though somewhat richly priced versus historical relationships.
However, current real earnings per share of the S&P 500 are well
above their long-term historical moving average, and corporate
profit margins and profits as a proportion of GDP are near
record levels. If U.S. corporate earnings levels are
unsustainably high, then U.S. equity prices are vulnerable.
20
The unsustainably steep yield curve of the past few years
flattened during fiscal year 2005 with long rates declining even
as the Fed increased short rates. In response to sustained
strength in domestic output and employment and even stronger
growth in consumption, the Fed steadily tightened monetary
policy by raising the Fed Funds rate from one percent in June of
2004 to 3.50 percent in August 2005. In response to the
expected growth and inflation moderating effects of the Fed’s
tightening actions, and buoyed by demand from Asian central
banks, long-term nominal and real interest rates declined by
about 0.5 percent.
Credit spreads tightened modestly during the year, masking
greater intra-year volatility. While healthy corporate balance
sheets, other than in the distressed automobile sector, support
narrower than average credit spreads, investors today are
receiving thin compensation for bearing credit risk.
STRATEGY
For fiscal year 2006, UVIMCO has adopted a new investment
policy including a new target asset allocation. The new asset
allocation is based upon an extensive review of investment
objectives and capital market risk and return expectations
conducted during the past six months. The table below compares
the new target for fiscal year 2006 to the prior target from
fiscal year 2005 using broad asset class categories.
Investment Policy
Asset Classes
Public Equity
Hedge Funds
Private Equity
Real Assets
Fixed Income
Total Assets
Target Allocations
2005
2006
Change
15.0%
25.0%
10.0%
57.5%
45.0%
-12.5%
19.5%
15.0%
-4.5%
3.0%
5.0%
2.0%
5.0%
10.0%
5.0%
100.0%
100%
0%
The new target has larger allocations to the traditional
asset classes of public equities and fixed income and lower
allocations to the alternative asset classes of hedge funds and
private equity. The most meaningful change is the increased
allocation to public equities. Public equity markets are more
reasonably priced than during the equity market mania of the
late 1990s, during which the decision to reduce the public
equity target down to 15 percent was made. The continued large
21
allocation to hedge funds recognizes that UVIMCO invests in
public markets primarily through active managers, a majority of
which are organized as hedge funds.
The reduction in the private equity target recognizes the
lower current actual allocation to private equity and the
impracticality and imprudence of quickly increasing that actual
allocation. UVIMCO commits capital to buy-out and venture
capital managers expected to achieve returns substantially above
that available from actively managed public equity and hedge
fund investments. Only a small fraction of private equity
managers meet this standard, and many of those are closed to new
investment. Given these constraints, UVIMCO’s target allocation
to private equity will follow rather than lead actual investment
activity.
The increased target allocations to fixed income and real
assets reflect an intention to increase the asset class
diversification of the Pool. Actual increases in the Pool’s
allocations to these asset classes will be dependent on the
identification of attractive active management strategies.
At the beginning of fiscal year 2006, the Pool’s actual
allocation to public equities is at the new target. Within
public equities, the Pool is overweight emerging market equities
and underweight developed non-U.S. equities by about five
percent each. In view of the reduced relative attractiveness of
emerging markets after their impressive three year appreciation
of 25 percent per year compounded, the Pool’s emerging market
exposure may be reduced in favor of developed markets.
The nearly ten percent overweight to hedge funds mirrors
the combined underweight to private equity, real assets, and
fixed income. As attractive opportunities are identified and
funded in these other asset classes, hedge fund investments may
be redeemed to provide the required capital. Within hedge
funds, UVIMCO staff seeks to improve returns by continually
allocating toward higher return and away from lower return
managers and by increasing the leverage within the hedge fund
strategies where appropriate.
The Pool’s actual allocation to private equity and real
assets are slightly below target. The 2006 target allocations
are an approximate forecast of the expected average allocations
over the full fiscal year. A brisk pace of commitments made
during 2004 and 2005 is expected to increase the market value of
the Pool’s private equity portfolio toward 15 percent and the
22
real assets portfolio toward 5 percent during the current fiscal
year. The actual pace of draws and distributions to and from
private investments is difficult to forecast with any precision.
An increase in the fixed income allocation from its present
five percent minimum will be dependent upon identification of
active management opportunities with higher return expectations
than the Pool’s alternative investment opportunities,
principally hedge funds. The five percent minimum allocation to
high grade fixed income is primarily intended to provide a
source of liquidity to fund unanticipated capital calls and/or
withdrawals; the Pool may borrow against these bonds to meet
such short-term liquidity needs.
The Pool’s principal source of active investment strategy
is security selection through allocations to external investment
managers. The broad outlines of these allocations are
determined by the strategic allocation target adopted by the
Board in UVIMCO’s Investment Policy Statement. The Board has
delegated identification, analysis, and retention of specific
active managers to UVIMCO staff under the direction of the CEO.
UVIMCO staff believes it is able to consistently identify
active managers expected to produce returns through skillful
exploitation of market inefficiencies well in excess of the
expected return to passive market exposure. Because these
skill-based returns are often uncorrelated with each other, the
Pool’s diversified collection of active management strategies
aggregates to a lower risk portfolio than a traditional
institutional allocation of 65 percent equities and 35 percent
fixed income.
23
24
25
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26
MISCELLANEOUS FINANCIAL REPORTS
Finance Committee
University of Virginia
September 20, 2005
UNIVERSITY OF VIRGINIA ACADEMIC DIVISION
FINANCIAL REPORT
ACCOUNTS AND LOANS RECEIVABLE AS OF JUNE 30, 2005
Summary of Accounts Receivable:
The University's Academic Division's total accounts
receivable at June 30, 2005 were $11,467,000 as compared to
$15,985,000 at March 31, 2005. The major sources of receivables
at June 30, 2005 were sponsored programs of $7,934,000 and other
receivables of $2,447,000.
The past due receivables over 120 days old were $989,000 at
June 30, 2005 or 8.62 percent of total receivables, which is
well below the Commonwealth's management standard of ten
percent.
Student
Accounts
Gross Accounts
Receivable
Sponsored
Programs
Other
Receivables
Total
$1,087,000
$7,934,000
$2,447,000
$11,468,000
100,000
600,000
159,000
859,000
Net Accounts
Receivable
$987,000
$7,334,000
$2,288,000
$10,609,000
Accounts
Receivable
Greater than 120
Days Past Due
$165,000
$622,000
$202,000
$989,000
Less: Allowance
for Doubtful
Accounts
SOURCE:
DATE:
27
Revenue and Collections
August 29, 2005
UNIVERSITY OF VIRGINIA ACADEMIC DIVISION
FINANCIAL REPORT
ACCOUNTS AND LOANS RECEIVABLE AS OF JUNE 30, 2005
Summary of Loans Receivable:
The default rate for the Perkins Student Loan Program
decreased by 0.24 percent to 4.91 percent. This is based on the
cohort default rate calculation and is well below the 15 percent
threshold set by federal regulations. The Health Professions
Loan Program default rate also decreased by 0.11 percent to zero
percent. The Nursing Undergraduate Student Loan Program default
rate remained the same at 1.84 percent. Both medical loan
programs are well below the five percent federal threshold. The
University Loan Program default rate increased by 0.07 percent
to 4.727 percent.
Gross Loans
Receivable
Perkins Student
Loans
Health
Professions
Loans
Undergraduate
Nursing Loans
University
Loans
Total Student
Loan
Outstanding
Current
Default Rate
Inc./(Dec)
From Last
Quarter
$19,265,000
4.91%
(0.24)%
168,000
0.00%
(0.11)%
741,000
1.84%
0.00%
8,222,000
4.72%
0.07%
$28,396,000
SOURCE:
DATE:
28
Student Financial Services
August 29, 2005
EXPENDITURE OF FUNDS FROM PRATT ESTATE
For Year Ended June 30, 2005
07/01/04
Unexpended
Balance
Arts & Sciences
Biology
Student Support
Faculty Salary Support
Research & Equipment
Chemistry
Student Support
Faculty Salary Support
Research & Equipment
$
19,755.47
-7,904.22
198,500.92
210,352.17
FY 04-05
Net
Allocations1
$
273,572.00
36,428.00
0.00
310,000.00
FY 04-05
Expenditures
$
06/30/05
Unexpended
Balance
312,026.26
35,173.26
59,455.51
406,655.03
-18,698.79
-6,649.48
139,045.41
113,697.14
98,417.69
8,806.67
-37,578.07
69,646.29
25,000.00
60,000.00
195,000.00
280,000.00
79,857.40
71,670.01
124,329.93
275,857.34
43,560.29
-2,863.34
33,092.00
73,788.95
315,108.41
46,676.09
90,889.67
452,674.17
21,391.00
268,609.00
20,000.00
310,000.00
31,689.40
272,510.82
22,789.15
326,989.37
304,810.01
42,774.27
88,100.52
435,684.80
-62,769.16
252,114.55
1,056,844.18
1,246,189.57
123,066.00
36,934.00
150,000.00
310,000.00
26,600.00
32,064.85
30,693.41
89,358.26
33,696.84
256,983.70
1,176,150.77
1,466,831.31
Presidential Science Initiative
Science & Tech Initiative (FEST)
Provost Faculty Start-Ups
Morphogenesis & Regen. - A&S
Total Arts and Sciences
421,692.43
342,155.82
1,790,635.35
1,165,000.00
5,698,345.80
90,000.00
0.00
663,183.00
0.00
1,963,183.00
210,864.38
91,376.61
15,000.00
0.00
1,416,100.99
300,828.05
250,779.21
2,438,818.35
1,165,000.00
6,245,427.81
School of Medicine
Student Support
Research & Equipment
Science & Tech Initiative (FEST)
Special Distribution
Morphogenesis & Regen. - Med
Decade Plan
Pratt Master - Allocated
Total School of Medicine
15,628.96
1,040,800.38
192,113.58
600,000.00
1,165,000.00
3,857,182.24
58,941.00
6,929,666.16
207,573.00
1,355,675.00
0.00
0.00
0.00
0.00
-58,941.00
1,504,307.00
224,397.76
1,538,867.50
104,270.57
300,107.48
0.00
877,515.33
0.00
3,045,058.64
-1,095.80
857,607.88
87,843.01
299,892.52
1,165,000.00
2,979,666.91
0.00
5,388,914.522
$ 12,628,011.96 $ 3,467,490.00
$ 4,461,159.63
$11,634,342.33
Mathematics
Student Support
Faculty Salary Support
Research & Equipment
29
Physics
Student Support
Faculty Salary Support
Research & Equipment
TOTALS
NOTES: 1.
2.
Allocations include amounts approved by the Board of Visitors for 2005-06 and $204,307.00 carryforward
amount from prior year allocation.
Includes $1,000,000.00 invested in UVA Endowment Pool managed by UVIMCO.
SOURCE: Financial Analysis
DATE:
August 29, 2005
INTERNAL LOANS TO UNIVERSITY DEPARTMENTS AND ACTIVITIES
As of June 30, 2005
PURPOSE
Wise Student System
ITC Mainframe
Wise Student Center
Columbarium
DATE OF
LOAN
INTEREST
RATE
04/21/04 Blended borrowing
rate (4.75%)
03/16/04 Blended borrowing
rate (4.75%)
11/30/03 Blended borrowing
rate (4.75%)
10/30/03 Blended borrowing
rate (4.75%)
ORIGINAL
LOAN AMOUNT
PRINCIPAL
PAYMENTS MADE
TO DATE
OUTSTANDING
PRINCIPAL
APPROXIMATE
FINAL PAYMENT
200,000.00
50,000.00
150,000.00
July 2007
300,000.00
200,000.00
100,000.00
July 2006
2,000,000.00
1,000,000.00
1,000,000.00
85,000.00
45,000.00
June 2007
October
40,000.00 2008
30
ITC-Cincom
02/01/02 Fed. Funds+60 pts.
950,000.00
950,000.00
-
July 2005
WTJU
06/01/00 Fed. Funds+60 pts.
120,000.00
120,000.00
-
May 2005
UVA Medical Center
07/10/02 Fed. Funds+60 pts.
4,021,451.50
3,033,098.83
988,352.67
June 2006
Wise Football Facility
12/22/98 Fed. Funds+60 pts.
3,000,000.00
1,285,772.18
1,714,227.82
June 2009
10,676,451.50
6,683,871.01
3,992,580.49
Total Internal Loans
Subject to
$15M Limit Established by
BOV1
NOTES: 1.
Per January 1990 Board of Visitors resolution establishing the internal loan pool at $10 million and
per April 2003 Board of Visitors resolution approving the expansion of the internal loan pool from
$10 million to $15 million. All internal loans are subject to the approval of the Executive Vice
President and Chief Operating Officer.
SOURCE:
DATE:
Investment and Tax Services
August 15, 2005
*
QUARTERLY BUDGET REPORT
As of June 30, 2005
This report compares the actual results for the sources and
uses to the Academic Division annual budget (excluding the Medical
Center and the University of Virginia’s College at Wise). At the
end of fiscal year 2004-05, 97.9 percent of the budget has been
collected representing tuition revenues, the allotment of general
fund appropriations, sales, investment and other revenues and
auxiliary enterprise collections. The remaining sources of
available funds are recognized as expended. For fiscal year end
2004-05, 97.4 percent of the budget has been expended.
The operating budget is developed using differing rules and
conventions from the audited financial statements, which are
developed in accordance with generally accepted accounting
principles (GAAP). In some cases, similar descriptions are used in
both reports even though the precise definitions and the specific
amounts are not identical. However, both sets of figures are
accurate for their particular purposes, and both are drawn from the
University’s financial applications. Outlined below are several of
the differing conventions used in the operating budget and the
actual results presented on the accompanying statement:
•
The operating budget is prepared on a cash basis.
•
The operating budget presents tuition and fees as gross income
and the full amount of student aid as an expense.
•
In the operating budget, depreciation is not funded and noncapital outlay purchases are recognized as expensed rather
than spread over the useful life of the purchase. Debt
service, major repair or renovation expenditures occur within
the capital outlay accounts – and off the operating budget;
however, the operating budget does include the annual
transfers from auxiliary enterprise operations to the capital
outlay accounts and reserves.
•
In the operating budget, the source of expenditures is shown
rather than actual revenues recognized. Unrestricted income,
including gifts and indirect cost recoveries, is shown only as
it is to be expended. Endowment distributions are included
only to the extent that expenditures are anticipated.
31
•
Direct lending is excluded from the operating budget.
•
Fringe benefit expenditures are included in the operating
budget using pooled benefit rates.
A definition of terms is included to explain the categories
for the sources and uses of funds.
SOURCE:
DATE:
32
Budget Office
September 8, 2005
University of Virginia Academic Division
2004-2005 Operating Budget Report
As of June 30, 2005
(in thousands)
33
2004-05
Revised
Budget
6/30/05
Actual
Results
Sources of Available Funds
Tuition & Fees
State General Fund Appropriations
Sponsored Research Direct & Indirect Costs
Endowment Distributions Expended
Private Gifts Expended
Sales, Investment & Other Revenues
Auxiliary Enterprises
$256,541
132,866
285,340
66,305
62,622
28,683
149,220
$260,685
131,795
277,006
54,477
59,787
19,668
157,856
($4,144)
1,071
8,334
11,828
2,835
9,015
(8,636)
Total Sources of Available Funds
$981,577
$961,274
$20,303
Uses of Available Funds
Direct Instruction
Research and Public Service
Library, Information Tech., & Academic Administration
Student Services
General Administration
Operation & Maintenance of Physical Plant
Scholarships, Fellowships, and Other Graduate Support
Total Educational & General and Student Aid
237,747
270,123
100,535
20,296
58,178
48,096
97,381
832,356
228,171
253,720
99,441
20,607
54,922
49,011
95,190
801,062
9,576
16,403
1,094
(311)
3,256
(915)
2,191
31,294
96.0%
93.9%
98.9%
101.5%
94.4%
101.9%
97.8%
96.2%
Auxiliary Enterprises
Athletics
University Bookstores
Housing
Other Auxiliary Enterprises
Auxiliary Operating Uses
Transfers to reserves for renewal, replacement & debt
Total Auxiliary Enterprise Uses
29,077
31,388
16,649
44,051
121,165
27,462
148,627
31,218
30,982
15,905
46,396
124,501
30,125
154,626
(2,141)
406
744
(2,345)
(3,336)
(2,663)
(5,999)
107.4%
98.7%
95.5%
105.3%
102.8%
109.7%
104.0%
$980,983
$594
$955,688
$5,586
$25,295
($4,992)
97.4%
n/a
Reserve for Salary Increases
Reserve for Base Operating Needs and Contingencies
Total Uses of Available Funds
Surplus
Variance
6/30/05
Percentage
of Budget
101.6%
99.2%
97.1%
82.2%
95.5%
68.6%
105.8%
97.9%
DEFINITION OF TERMS
Sponsored Research Direct and Indirect Costs -- primarily
research projects, but also includes activities restricted to
institutional and service programs.
Auxiliary Enterprises - those activities which are supported
entirely through fees charged to users, such as housing,
athletics, dining services, the telephone system and the
bookstore.
Instruction -- expenditures for the primary mission of the
University, which includes teaching faculty, support staff,
instructional equipment, and related routine operating costs.
Research -- includes expenditures for activities such as support
for research faculty and sponsored research. Activities include
the Center for Public Service, the State Climatologist, and the
Center for Liberal Arts.
Public Service -- includes activities such as the Miller Center
of Public Affairs, the Virginia Foundation for the Humanities
and Public Policy, and that portion of the medical school's
clinical physicians salaries and fringe benefits related to
patient care.
Library, Information Technology and Academic Administration -encompasses the libraries, the activities of the deans of the
schools, and other related expenditures.
Student Services -- activities whose primary purpose is to
contribute to the students' emotional and physical well-being
and to their intellectual, cultural, and social development
outside the classroom.
General Administration -- includes the financial,
administrative, logistical, and development activities of the
University.
Operation and Maintenance of Physical Plant -- includes
expenditures for activities related to the operation and
maintenance of the physical plant, net of amounts charged to
auxiliary enterprises and the Medical Center.
34
UNIVERSITY OF VIRGINIA
QUASI-ENDOWMENT ACTIONS
April 1, 2005 – June 30, 2005
(Per October 1990 and June 1996 Board of Visitors resolutions granting the
Executive Vice President and Chief Operating Officer authority to approve
selected quasi-endowment transactions, including establishments and
disinvestments, less than $2,000,000.)
Per the delegated authority from the Executive Vice President and Chief
Operating Officer, the Vice President for Management and Budget has approved the
additions, divestments and capitalizations of the quasi-endowments listed below.
Additions
Howland, Benjamin C. Memorial Lecture Fund
Low, Emmet F. and N. Alyce Chair Quasi-Endowment*
Marching Band Quasi-Endowment
Pediatrics Operational Quasi-Endowment Fund
Pratt Distinguished Professorship in Biomedical
Research Quasi-Endowment
UVA Bookstore Quasi-Endowment For Excellence
University Quasi-Endowment Fund (1)
Total Additions to Quasi-Endowments
$
Amount
30.00
28,537.21
25,000.00
15,400.00
1,000,000.00
250,000.00
6,804.13
$1,325,771.34
Divestments
School of Medicine Quasi-Endowment
Thaler, Myles H. Quasi-Endowment for HIV Research
Total Divestments from Quasi-Endowments
$50,000.00
10,413.00
$60,413.00
Endowment Income Capitalizations
Antrim, Lottie C. Income Capitalization Quasi-Endowment
Athletics General Operations Quasi-Endowment
Bristol Laboratories Quasi-Endowment - Hecht
Capital Renewal Program Quasi-Endowment
Chrysler, W.P. Fund for Engineering Library
Class of 1955 Fund
Class Of 1956 Fund
Class Of 1957 Fund
Class Of 1958 Fund
Class Of 1959 Fund
Class Of 1960 Fund
Class Of 1961 Fund
Class Of 1962 Fund
Class Of 1963 Fund
Class Of 1964 Fund
Class Of 1965 Fund
Dean’s Adenosine Patent Quasi-Unrestricted Income
$11,032.25
67,620.89
3,464.11
24,739.84
921.57
802.40
2,731.60
2,123.69
2,699.95
3,156.29
2,660.47
2,402.95
3,507.21
1,085.37
2,136.28
652.05
92,616.39
35
Endowment Income Capitalizations (continued)
Dermatology General Investment Fund
$12,832.25
Hecht-Cruachem Chemistry Quasi-Endowment
3,956.62
Hecht-Cruachem Chemistry Quasi-Endowment #2
3,579.80
Hecht-Cruachem Chemistry Quasi-Endowment #3
1,501.84
Horton, Charles E. Professorship in International
Plastic Surgery Quasi-Endowment
6,175.64
Hughes Endowment Income Capitalization Quasi-Endowment
1,689.51
Jordan, Harvey E. Lectureship
587.89
McIntire, Howard Quasi-Endowment In Neurology
11,384.46
Miller, Mae W. Cancer Research Quasi-Endowment
7,141.51
Moyston Quasi-Endowment for Ophthalmology
10,335.32
Pediatrics Operational Quasi-Endowment Fund
34,147.42
Phase II Chemistry Building Unrestricted Quasi-Endowment 20,749.14
Plastic Surgery Quasi-Endowment Fund
15,914.20
Radiology Fund Special Diagnostic
1,808.47
School Of Medicine Quasi-Endowment
20,081.47
Swortzel, Thelma R. Research Quasi-Endowment
11,964.94
Taylor, Henry N. Fund
133.17
Virginia Quarterly Review Anonymous
230.21
Total Endowment Income Capitalizations
$390,567.17
NOTES:
* Quasi-Endowment newly established or originally funded since
April 1, 2005.
(1) 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.
SOURCE:
DATE:
36
Financial Administration
August 29, 2005
ENDOWMENT/INVESTMENTS FOR UVA AND RELATED FOUNDATIONS*
June 30, 2005
(In Thousands)
R&V Funds
Invested by
UVIMCO
$562,741
Related
Foundation
Funds
Invested
by UVIMCO
$ 6,035
Related
Foundation
Funds
Invested by
Direction
of Fdn Bd
$21,461
88,204
54,018
136,637
0
278,859
247,361
10,890
12,438
3,334
274,023
UVA Law School and related foundation
34,213
97,048
106,076
0
237,337
School of Engineering and related foundation
62,071
0
1,120
2,283
65,474
McIntire School of Commerce and related
foundation
Graduate School of Arts and Sciences
29,959
0
413
29,670
60,042
36,775
0
0
0
36,775
26,394
0
0
1,626
28,020
24,569
629
277
1,754
27,229
9,998
5,969
50
16
16,033
12,426
0
31
349
12,806
58
0
0
61
119
0
0
0
245,214
245,214
Athletics and related foundation
32,852
41,196
3,689
336
78,073
Miller Center and related foundation
40,947
2,855
0
0
43,802
0
0
31,104
9,056
40,160
0
45,204
495
0
111,990
5,310
42,112**
UVA Medical School and related foundations
Darden School and related foundation
College of Arts and Sciences and related
foundations
37
School of Nursing
UVA's College at Wise and related
foundation
Curry School of Education and related
foundation
School of Architecture
School of Continuing and Professional Studies
Alumni Association*
Alumni Board of Trustees
UVA Foundation and related entities
UVA Medical Center and related foundation
All Other
Notes:
*
**
876,086
16,062
0
$2,196,644
$285,216
$355,903
Funds
Invested
by Alumni
Association
$3,403
Total
$593,640
45,699
159,412
0
$297,102
892,148
$3,134,865
Includes funds on deposit for other areas/schools not individual listed.
Excludes approximately $21.6 million of board designated pension funds.
SOURCE:
DATE:
Financial Administration
August 29, 2005
UNIVERSITY OF VIRGINIA
SALARY AND COMPENSATION FOR FULL-TIME 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 eleven- or
twelve-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, 2004-2005," Academe, March-April, 2005, the
bulletin of the American Association of University Professors.
SOURCE:
DATE:
Institutional Assessment and Studies
August 19, 2005
38
UNIVERSITY OF VIRGINIA FACULTY SALARY AVERAGES
Salary at AAU Institutions
•
AAU salary data includes all sources of funds.
•
The 60 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 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. The 1996-97
average does not include the increases from endowment funds
that were made in early 1997 retroactive to December 1996.
That retroactive increase from the endowment, along with
the December 1997 installment from the endowment and five
percent increase from the state, are represented in the
1997-98 figures.
•
The UVa percentage increase between 2003-04 and 2004-05 was
5.06 percent. This was well above the median for the AAU
(3.32 percent) causing the University’s rank position of
24th in 2003-04 to rise to 23rd in 2004-05.
•
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 as low as 32nd in 1996-97, and now stands at 23rd
(63rd percentile) in 2004-05. During that 15-year period
the University’s average salary increased from $54,100 in
1989-90 to $91,090 in 2004-05 (a total increase of 68
percent, which is the equivalent of a 3.46 percent increase
applied and compounded each year).
Compensation at AAU Institutions
• As in the case of the average salary, average compensation
was reported as of December 1 of those years.
•
The UVa percentage increase between 2003-04 and 2004-05 was
5.18 percent. This also was well above the median for the
AAU (3.53 percent) and resulted in a three-position rise in
our compensation ranking (from 27th to 24th).
•
In 1989-90 UVa ranked 20th (65th percentile) in
compensation. Since then our ranking has varied, never
39
rising above 20th, and now stands at 24th (61st percentile)
in 2004-05. During that 15-year period our average
compensation increased from $66,800 in 1989-90 to $113,800
in 2004-05 (a total increase of 70 percent, which is the
equivalent of a 3.62 percent increase applied and
compounded each year).
State Salary at SCHEV Peer Institutions
•
In the spring of 1997, SCHEV approved a new sample of peer
institutions for the University. 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
endowment funds.
•
The UVa percentage increase in State authorized salary
between 2003-04 and 2004-05 was five percent. This
includes both the three percent provided by the State plus
the two percent supplement allocated from tuition. The
mean increase for the peer group was 3.06 percent. This
resulted in a rise from 17th position in 2003-04, to 16th
position in 2004-05.
•
In 1989-90, UVa ranked 10th in our previous state peer
group of 25. In the newly constituted group, the
University began in 1996-97 at position 16 (27th
percentile). Since then, our ranking has varied, rising as
high as 11th in 2000-01, falling as far as 17th last year,
and rebounding slightly to the 16th spot in 2004-05.
SOURCE:
DATE:
Institutional Assessment and Studies
August 19, 2005
40
41
42
43
44
45
SUMMARY OF SPONSORED PROGRAMS GRANTS AND CONTRACTS
Fiscal Year 2004 - 2005
For Fiscal Year 2005, the University received sponsored
program awards totaling $314.16 million dollars. This was an
approximate increase of six percent over the fiscal year 2004
number of $295.94 million dollars.
This year’s numbers
include $69.12 million for indirect costs.
The Department of Health and Human Services (DHHS)
continues to be the University’s largest sponsor of awards,
accounting for almost 51 percent of the total.
The School of
Medicine was awarded 56 percent of the award dollars, followed
by the College of Arts and Sciences and the School of
Engineering, who each accounted for approximately 15 percent of
the funds. The remaining 14 percent was distributed among
various areas within the University.
NOTE: The Curry School of Education shows a significant
increase in funding compared to previous years. This is due in
large part to the receipt of several multi-year awards from the
Department of Education. There is some speculation that the
Department of Education is funding awards in this manner due to
the uncertain nature of future budgets.
SOURCE:
DATE:
46
Office of Sponsored Programs
August 29, 2005
SPONSORED PROGRAM RESTRICTED GRANTS & CONTRACTS
For the period July 1, 2004 - June 30, 2005
(In $ Millions)
SCHOOL
DHHS
DOD
DE
DOE
NASA
NSF
Other
Federal
Architecture
Arts & Scs.
15.21
Education
1.39
Engineering
2.56
1.06
1.03
3.43
3.50
11.08
13.34
0.30
10.12
4.59
0.68
0.92
2.69
13.45
2.06
47
Law
Non
Federal
State
163.67
Nursing
3.18
Other *
0.09
2.40
0.58
0.24
0.68
0.75
Total
03-04
% Inc./
Dec.
0.44
0.09
0.53
0.58
-9%
7.16
0.52
46.62
49.37
-6%
1.53
3.39
18.07
8.81
105%
10.95
1.83
48.10
45.12
7%
1.74
2.35
-26%
1.74
Medicine
Total
04-05
31.57
2.26
175.15
171.18
2%
0.32
0.25
3.75
3.91
-4%
3.59
0.03
0.10
0.08
1.50
5.33
9.48
20.20
14.62
38%
314.16
295.94
6%
Total 04-05
159.10
16.80
16.00
4.96
6.53
25.01
8.90
59.04
17.82
Total 03-04
160.97
14.44
8.24
5.33
4.82
22.67
9.26
55.09
15.11
% Inc./Dec.
-1%
16%
94%
-7%
35%
10%
-4%
7%
18%
7%
Notes:
1)
2)
3)
* Includes University Librarian, Vice President for Research and Graduate Studies, Miller Center, Vice President and
Provost, School of Continuing and Professional Studies, Center for Public Service, Financial Administration, Student Health,
Health Sciences Library, University of Virginia’s College at Wise, Virginia Foundation for the Humanities, and Vice
President and Chief Student Affairs Officer.
Report reflects data as of August 2, 2005.
Totals may be slightly off due to rounding.
SOURCE:
DATE:
Office of Sponsored Programs
August 29, 2005
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