Board of Visitors
Finance Committee
February 19, 2016
BOARD OF VISITORS
STRATEGIC INVESTMENT
FUND
PAT H O G A N
E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
Board of Visitors Strategic Investment Fund
• Establishment of a fund for strategic investments
that support the vision and aspirations of the
highest levels of excellence in the University’s
academic, research and healthcare missions.
• The Strategic Investment Fund would be carefully
managed and designed to grow and provide the
means to fund future strategic investments.
3
FACULTY, STAFF AND
STUDENT HOUSING RATES
2016-2017
COLETTE SHEEHY
S E N I O R V I C E P R E S I D E N T F O R O P E R AT I O N S
UVa Faculty and Staff Property Rents
Rents reflect market rate
86 Units
3.75% Average Increase
5
Student Housing Rates
Academic
Division
College at
Wise
Number of Beds
6,868
760
Occupancy rate (fall 2015)
97%
75%
$195 (3.4%)
$90 (1.5%)
$5,876
$6,243
2016-2017 Academic Year
Average increase
Average double room charge
(nine-month lease)
6
2015-2016 UVa Student Housing Rates
VA Public, Peer & Selected Other Institutions Double Room Rate
$10,000
UVa = $5,681
$9,000
$8,000
Average "Peer" & Selected Others = $7,647
$7,000
Average VA Public Schools = $5,630
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
7
2015-2016 UVa-Wise Student Housing Rates
VA Public, Peer & Selected Other Institutions Double Room Rate
$8,000
UVa-Wise = $6,144
.... Average VA Public Schools = $5,630
$7,000
- - - - Average "Peer" & Selected Others(UMW) = $4,950
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
8
DINING SERVICES RATES
2016-2017
COLETTE SHEEHY
S E N I O R V I C E P R E S I D E N T F O R O P E R AT I O N S
2016-2017 Dining Service Rates
2016-2017 Academic Year
Average increase/(decrease)
Meal Plan Rate Range
Academic
Division
College at
Wise
2.76%
(3.4%)
$200 - $5,190
$165 - $4,112
10
2015-2016 UVa Dining Meal Plan Rates
VA Public, Peer & Selected Other Institutions Full Meal Plan Rate
$7,000
UVa = $4,720
$6,000
Average "Peer" & Selected Others = $5,221
$5,000
Average VA Public Schools = $4,421
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
11
2015-2016 UVa-Wise Dining Meal Plan Rates
VA Public, Peer & Selected Other Institutions Full Meal Plan Rate
$7,000
UVa-Wise = $4,322
.... Average VA Public Schools = $4,421
$6,000
- - - - Average "Peer" & Selected Others = $3,460
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey
12
2016-2017 TUITION AND FEES
FOR THE UNIVERSITY OF
VIRGINIA AND THE
COLLEGE AT WISE
MELODY BIANCHETTO
VICE PRESIDENT FOR FINANCE
2016-2017 University of Virginia
Tuition and Fee Proposal
14
Tuition Setting Context
University of Virginia
• In 2016-17, the University will continue to build on the
sustainable, multi-year financial plan which features:
–
–
–
–
Investing in Quality
Improving Affordability and Predictability
Pursuing Organizational Excellence
Leveraging Financial Resources
• Continual investment in:
– Title IX and Compliance
– Student Health, Safety, and Security
– IT Security Enhancement
15
Multi-Year (FY17-FY23) Financial Plan Assumptions
Category
Assumption
Inflation
• 2.5% (modified HEPI) for the period FY 2106-2023
Tuition
• Undergrad tuition: HEPI inflation + 1%; establish optional fixed rate guarantee; reduce needbased debt for Virginians
• Grad and SOM tuition: 1.5% - 3.5% annual increase
• Law & Darden tuition: 3% annual increase
State Appropriations
• Maintain approved previously appropriation (i.e. no increase, no cut)
Research Funds
• Federal funding for grants and contracts remains at current rate
Endowment Distribution
• 40 basis point spending increase; 7.5% rate of return
T&R Faculty Salary and Benefits
• Includes estimates to manage intergenerational turnover ($30.6 for FY17) and faculty to support
revenue growth
• Annual merit pool of 3% ; Base adjusted for anticipated Resignations/Retirements
• Fringe rate at 27% of salary, includes funding of VRS at state proposed rates
Staff/A&P Faculty Salary and
Benefits
• University staff and A&P: Annual merit pool of 3% from 2015-22
• Classified staff: 0% in 2015-16; 2% thereafter
• Fringe rate at ~38% of salary, includes funding of VRS at state proposed rates
Other Than Personnel Services
• Annual increase at inflation rate
Savings from Organizational
Excellence
• $9-19 million/year; targeted goal of $120 million over FY16-22
Safety Improvements
• Safety improvements of $2.6 million in FY16 + inflation thereafter
Cornerstone Plan
• Identified funding for implementation ($24.88 for FY17)
16
2016-2017 Tuition and Fees
University of Virginia
Tuition
• In-State Undergraduates entering Fall 2016: $13,220
– Optional Guarantee: $14,378
•
•
•
•
•
Continuing In-State Undergraduates: $328 or 3% increase
All Out-of-State Undergraduates: $1,216 or 3% increase
All Graduate Rates: 0.3% - 3.9% increase
SOM: 0.1% - 0.2% increase
Law and Darden: 2.1% - 4.3% increases
Mandatory Fee
• $78 increase (3.1% for in-state, 2.4% for out-of-state)
17
2015-2016 Undergraduate Tuition & Fee
First Year Undergraduate Tuition Peer Comparison
$60,000
$50,000
$14,678 /
$43,974
$40,000
Out of State Average - $37,424
$30,000
Out of
State
$20,000
In state
In State Average - $11,554
$10,000
$-
.
18
2015-2016 Undergraduate Tuition & Fee
Average Undergraduate Tuition In State Comparison
$25,000
$20,000
$15,000
$12,347
Average - $11,836
$10,000
Non-E&G Fees
Tuition
$5,000
$0
19
2016 - 2017 Proposed Price of Attendance
First Year, UVa College of Arts & Sciences
In-State
Tuition & Fees
Orientation Fee
Room
Board
Books, Travel, Others
Total Price of Attendance
Expected % Students on Aid
Out-of-State
$15,874
$210
$5,876
$4,850
$3,914
$30,724
$45,058
$210
$5,876
$4,850
$5,200
$61,194
35%
30%
$10,174
$20,550
$16,914
$44,280
For Students on Aid
Average Grants
Average Net Price before loans
20
2016-2017 Tuition Resolution
University of Virginia
• If the University’s 2016-2017 unrestricted
state appropriation increases beyond what is
assumed in the multi-year financial plan, the
proposed 2016-2017 in-state undergraduate
tuition rates would be revised downward
accordingly.
21
2016-2017 College at Wise
Undergraduate Tuition Proposal
22
Tuition Setting Context
College at Wise
• In 2016-17, continued development of initiatives outlined in
Six Year Plan leading to long-term growth and sustainability:
o Implementing the Wise Writes Program, the cornerstone of SACSCOC
Quality Enhancement Plan
o Enhancing the quality and stability of academic faculty
o Addressing affordability and debt burden of our students
o Cultivating the marketability of the College
• Continual investment in:
o Title IX and Compliance
o Regional Economic Development
o STEM-H Initiatives through accreditation
23
2016-2017 Tuition and Fees
College at Wise
Tuition
• In-State Undergraduates: 3% increase to $5,210
• Out-of-State Undergraduates: 3% increase to $21,288
Mandatory Fee
• $165 increase (4.0% for in-state, 3.4% for out-of-state)
24
2016 - 2017 Proposed Price of Attendance
First Year, College at Wise
In-State
Tuition & Fees
Room
Board
Total
Out-of-State
$9,539
$6,243
$4,112
$26,249
$6,243
$4,112
$19,894
$36,604
25
ENDOWMENT REPORT:
MARKET VALUE AND
PERFORMANCE AS OF
DECEMBER 31, 2015
LARRY KOCHARD
CHIEF EXECUTIVE OFFICER, UVIMCO
Outline
• Performance Review
• Asset Allocation
• Current Environment
• Going Forward
27
Performance Review
As of December 31, 2015
Long Term Pool
Policy Benchmark
Equity
Public
Long / Short
Private
Total Equity
MSCI All Country World Equity
Real Assets
Real Estate
Resources
Total Real Assets
MSCI Real Estate
Fixed Income, Cash & MAC
Marketable Alternatives and Credit
Government Bonds
Cash & Currency
Total Fixed Income, Cash & MAC
Barclays Aggregate Bond
Market Value
$ Millions %
1 YR
3 YR
Annualized
5 YR
10 YR
20 YR
FYTD
Dec-15
7,448
100.0
100.0
6.0
(0.4)
11.0
6.5
10.9
6.2
9.1
5.5
11.7
6.6
(0.7)
(1.8)
1,750
1,676
1,362
4,788
23.5
22.5
18.3
64.3
60.0
1.1
6.3
23.6
9.0
(1.8)
11.9
10.5
22.9
14.4
8.3
12.4
9.8
20.4
13.7
6.7
10.3
8.5
14.2
11.0
5.3
11.5
11.1
20.6
14.1
6.4
(5.4)
2.2
1.3
(0.8)
(4.7)
490
285
775
6.6
3.8
10.4
10.0
24.4
(25.2)
2.7
2.5
16.3
(2.4)
8.8
7.6
13.1
5.4
10.9
9.4
(2.5)
12.1
6.5
5.6
4.0
-11.0
8.3
4.7
(8.0)
0.1
6.1
9.9
11.8
3.6
25.3
30.0 0
(2.2)
0.4
0.0
(0.7)
0.8
6.2
0.3
0.0
3.1
2.1
6.3
0.3
0.0
3.2
3.6
6.2
3.8
-5.0
4.4
6.8
5.9
-6.3
5.4
(1.9)
(0.2)
(0.0)
(0.9)
1.0
741
877
267
1,885
28
Asset Allocation
100%
90%
23.5%
80%
60%
Equity
70%
22.5%
60%
50%
40%
18.3%
30%
6.6%
20%
9.9%
3.8%
30%
Fixed
Income
10%
0%
10%
Real
Assets
15.4%
2001
2002
2003
Public Equity
Real Estate
Bonds & Cash
2004
2005
2006
2007
2008
2009
2010
Long/Short Equity
Resources
2011
2012
2013
2014
2015
Policy Portfolio
Private Equity
Marketable Alternatives & Credit
As of December 31, 2015
29
Current Environment
• Macroeconomic challenges
o Deflation, global growth
o Commodities
o Emerging markets
o Interest rates
o Elections
• Valuations
• Competing pools of capital
• Opportunities?
30
Going Forward
• Constantly reassess the current portfolio
o Recent analyses include marketable alternatives & credit
• Manage risk and rebalance
• Use market weakness as an opportunity to add to high conviction
managers
• Continue to co-invest with our managers
• Be opportunistic
• Most importantly, understand our edge
31
DECEMBER 31, 2015
QUARTERLY FINANCIAL
REPORT
MELODY BIANCHETTO
VICE PRESIDENT FOR FINANCE
December 31, 2015 Financial Report
Key Take-Aways
• Change in Net Position
• Planned vs. Actual Performance
• Key Drivers
– Endowment
– Health System
– Research
– Treasury
– Investments in Strategic Priorities
33
MANAGERIAL REPORTING
PROJECT – UPDATE
MELODY BIANCHETTO
VICE PRESIDENT FOR FINANCE
Purpose: Transform Data to Insight
Where We Will
Be
Where We Were
Where We Are
Operational data is not
integrated or accessible
from a single source
Establishing data
definitions and data
governance, which
improve data quality
Single source for
finance, employee,
student, space, and
other data
Designing and
populating data
warehouse to link data
for 1st time
Accessible and robust
toolset with capability
to summarize and drilldown, perform Googlelike search, and
develop high quality
decision-support
Data is managed and
manipulated across
many platforms
(shadow systems),
making it difficult to
aggregate, verify, and
consistently report on
data
Data sources do not
have common
definitions
Developing a modernday business
intelligence tool (Qlik)
Will deploy expenditure
data by June 2015
Transformation to an
analytical,
information-driven
culture
35
Timeline
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
initial pilot 1st data release 2nd data release 3rd and 4th data 5th data release
launch
releases
Jul 17
6th data
release,
Discoverer
phase-out
Jul 18
Jul 19
Expenditure Detail
Income Statement,
Balance Sheet
Employee Labor and Benefits
Charging
Student Financial Detail billing and collections,
financial aid
Student Academic Detail enrollment and degree
information
Other Employee Employment
Detail
Advanced Analytics, Other Data Sources
(space, fixed assets, research, fundraising,
admissions, etc.)
36
Prototype of Expenditure Dashboard
37