UNIVERSITY OF VIRGINIA
BOARD OF VISITORS
MEETING OF THE
FINANCE COMMITTEE
MARCH 24, 2015
FINANCE COMMITTEE
Tuesday, March 24, 2015
1:30 – 3:00 p.m.
Auditorium of the Albert & Shirley Small Special Collections
Library, Harrison Institute
Committee Members:
Victoria D. Harker, Chair
John A. Griffin, Vice Chair
Frank B. Atkinson
L.D. Britt, M.D.
Kevin J. Fay
John G. Macfarlane III
John L. Nau III
George Keith Martin, Ex-officio
Daniel M. Meyers, Consulting Member
Raymond C. Scheppach, Faculty
Consulting Member
AGENDA
I.
PAGE
ACTION ITEMS (Mr. Hogan)
A.
Enrollment Projections
1.
University of Virginia
1
2.
University of Virginia’s College at Wise
5
B.
2015-2016 Tuition and Required Fees for Undergraduate,
8
Graduate, Professional, and Special Programs (Mr.
Hogan to introduce Ms. Colette Sheehy; Ms. Sheehy to
report)
1.
Undergraduate Programs
2.
Graduate and Professional Programs
3.
School of Engineering and Applied Science
Systems Engineering Accelerated Program
4.
School of Continuing and Professional Studies
Post-Baccalaureate Pre-Medical Certificate
Program
5.
2016 Summer Session
6.
Mandatory Fees
7.
College at Wise Undergraduate Tuition & Fees
C.
Faculty, Staff, and Student Housing Rates, 2015-2016
(Mr. Hogan to introduce Mr. Richard A. Kovatch; Mr.
Kovatch to report)
1.
Faculty and Staff Housing Rates, 2015-2016
27
2.
Student Housing Rates, 2015-2016
30
a.
University of Virginia
b.
University of Virginia’s College at Wise
D.
Contract Rates for Dining Services, 2015-2016 (Mr.
33
Kovatch)
1.
University of Virginia
2.
University of Virginia’s College at Wise
PAGE
E.
F.
G.
II.
Capital Project Approvals (Ms. Sheehy)
1.
Revised Cost of the Newcomb Road Chiller Plant
2.
University Hospital Emergency Department/
Interventional Program/Bed Tower Expansion
3.
Dominion Virginia Power Electrical Grid
Reliability Project
Medical Center Quasi-Endowment – Extension of
Delegated Authority
Endowment Spending Rate Reset
WRITTEN REPORTS BY THE EXECUTIVE VICE PRESIDENT AND CHIEF
OPERATING OFFICER (Mr. Hogan)
A.
Endowment Report: Market Value and Performance as
of December 31, 2014
B.
Interim Academic Division Financial Report as of
December 31, 2014
C.
Medical Center Financial Report
D.
Endowment/Long-Term Investments, Including
Related Foundations as of December 31, 2014
E.
Quasi-Endowment Actions: October 1, 2014 –
December 31, 2014
F.
Sponsored Programs Restricted Grant and
Contract Activity as of December 31, 2014
36
38
40
43
45
47
66
73
75
76
78
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.A.1. Enrollment Projections – University
of Virginia
BACKGROUND: In 1990, the Board of Visitors approved a phased
enrollment growth plan for the next 15 years, culminating in
projected on-Grounds enrollment in 2004-2005 of 20,170: 12,685
undergraduate students, 5,185 graduate students, 1,700 firstprofessional students (law and medicine) and 600 on-Grounds
continuing education students. In 2005, the Board of Visitors
extended the enrollment projections to 2009-2010. During the
study and planning for the restructuring legislation, the
University determined that it could accommodate 1,500 new
students – 1,100 undergraduate students and 400 graduate
students – over the next 10 years, through 2014. This
projection was reaffirmed by the Board in 2007 and in 2009.
In 2011, the Board of Visitors approved the addition of
1,673 new undergraduate students through 2018-2019, which
included 1,400 new students attributable to new growth, and 273
from the plan which was approved in 2005. This new growth was
consistent with the Governor’s proposal to produce 100,000 more
degrees over 15 years. The 1,673 new undergraduates represented
an increase of 11.9% from the base year of 2010-2011. Of these,
1,171 students (70%) were to be Virginians.
Every two years, in the odd numbered year, the State
Council of Higher Education for Virginia (SCHEV) asks public
institutions of higher education to update their enrollment
projections and add two years to the projection timeline. New
enrollment projections for fall 2015 through fall 2022 must be
approved by the BOV and SCHEV this spring.
DISCUSSION: The proposed enrollment projections, presented
below, continue the undergraduate enrollment growth plan that
began in fall 2011 and was to continue through fall 2018, after
which the undergraduate enrollment would level off. The
proposal also represents a slight decrease in projected graduate
student growth and a significant reduction in off-Grounds
students.
1
Undergraduate Students: The last Board-approved
undergraduate enrollment growth plan began in fall 2011 and was
to be completed in fall 2018. The final increase for the
entering first-year class will take place in fall 2015 and will
level off at 3,675. But because of an unexpectedly high yield
rate in fall 2014, we will reach the overall target a year
early, in fall 2017.
Graduate Students: The growth in graduate students
predicted in the 2013 projections did not materialize in fall
2013 and 2014. The graduate schools are still predicting some
growth to begin in fall 2015 but at a slower rate. The overall
growth projected in fall 2022 in the proposal is about 100
students less than was projected in the 2013 projections (a 100
less and two years later).
Law and Medicine: The Law School will continue to reduce
the size of its class, somewhat more than was included in the
2013 projections, resulting in about 100 fewer Law students than
were enrolled in the fall 2014. School of Medicine enrollment
will remain level at 620 throughout the period. Net overall
change is 37 fewer students over the projection period (2015-16
through 2022-23).
On-Grounds Total: The total projected on-Grounds students
in fall 2020 is about 200 lower than was projected in the 2013
enrollment projections, 100 fewer graduate students and 100
fewer Law students.
Off-Grounds: Off-Grounds headcount has declined
significantly in the past few years, due both to our decision to
no longer count the FBI Academy students (about 270) in the
census total and to declining demand in both the School of
Continuing and Professional Studies and in Graduate Education,
but not in the Bachelor of Interdisciplinary Studies program.
Beginning in fall 2016, we will no longer be associated with the
Semester at Sea program, which will cause the off-Grounds
headcount to drop by approximately an additional 600. The
proposal shows some modest growth in subsequent years.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
2
UNIVERSITY OF VIRGINIA ENROLLMENT PROJECTIONS – THROUGH 20222023
WHEREAS, the State Council of Higher Education for Virginia
requires that a six-year enrollment projection be submitted
every two years by public institutions of higher education to
assist in statewide enrollment planning efforts; and
WHEREAS, the University’s existing enrollment plan,
approved by the Board of Visitors in February 2013, must be
updated to reflect projected undergraduate and graduate
enrollment levels through 2022-2023; and
WHEREAS, the Board of Visitors previously discussed and
approved enrollment growth of 1,100 undergraduate students and
400 graduate students over a decade, from 2004-2014; and
WHEREAS, the Board of Visitors supports the recommendations
of the Governor’s Commission on Higher Education Reform,
Innovation and Investment and the resulting Higher Education
Opportunity Act of 2011, one of which is to confer an additional
100,000 undergraduate degrees on Virginians over the next 15
years in order to make the Commonwealth one of the most highly
educated states in the nation; and
WHEREAS, the Board of Visitors revised its enrollment
growth plans in 2013 to continue the incorporation of an
additional undergraduate student growth of 1,400 students by
2020-2021;
RESOLVED, the Executive Vice President and Chief Operating
Officer is authorized to continue to implement plans with the
State Council of Higher Education for Virginia which will allow
the University to increase enrollment by 327 over the period of
2015-2016 through 2022-2023, in keeping with plans approved in
2011 and 2013; and
RESOLVED FURTHER, enrollment growth will occur only with
appropriate state support; and
RESOLVED FURTHER, that all undergraduate student growth
maintains the current 70% in-state/30% out-of-state ratio.
3
4
1,695
Law and Medicine
3,460
20,895
3,342
21,049
509
1,694
4,831
14,015
3,243
573
2010
Actual
3,191
21,106
389
1,702
4,759
14,256
3,434
542
2011
Actual
3,525
18,417
286
1,680
4,155
12,296
2,908
535
1997
Actual
2,812
21,095
341
1,699
4,689
14,366
3,397
536
2012
Actual
3,636
18,463
261
1,652
4,110
12,440
2,907
577
1998
Actual
2,226
21,238
324
1,746
4,558
14,610
3,517
595
2013
Actual
4,087
18,346
240
1,645
3,998
12,463
2,924
540
1999
Actual
1,932
21,800
338
1,687
4,653
15,122
3,709
612
2014
Actual
3,861
18,550
294
1,607
4,160
12,489
2,927
494
2000
Actual
Beginning in fall 2013, the FBI Academy students are no longer included in the numbers above.
Beginning in fall 2016, the Semester at Sea program will no longer be part of the University.
Beginning in 2011, BIS students in Tidewater, Richmond, and Northern Virginia are included in Off-Grounds.
No CPS students are included in the Undergraduate or Graduate totals.
CPS enrollments include Post-Baccalaureate-Pre-Med students.
Off-Grounds enrollments included Semester at Sea students and FBI Academy students, among others.
Notes: The 1st-Year and New Transfer counts are also included in the Undergraduate totals.
Off-Grounds
On Grounds Total
437
4,835
Graduate
Cont & Prof Studies (CPS)
13,928
3,246
566
2009
Actual
3,209
3,330
On-Grounds
Total Undergraduate
1st-Year
New Transfers (full-time)
Off-Grounds
On Grounds Total
18,279
320
343
18,398
1,699
1,703
1st-Professional
Cont & Prof Studies (CPS)
4,220
4,403
Graduate
12,040
2,827
558
11,949
2,876
577
1996
Actual
On-Grounds
Total Undergraduate
1st-Year
New Transfers (full-time)
1995
Actual
2,005
22,079
343
1,622
4,714
15,400
3,675
586
2015
Projected
3,891
18,848
344
1,608
4,301
12,595
2,980
541
2001
Actual
1,458
22,368
348
1,592
4,828
15,600
3,675
586
2016
Projected
3,947
19,197
382
1,608
4,459
12,748
2,999
508
2002
Actual
1,519
22,536
353
1,585
4,910
15,688
3,675
586
2017
Projected
3,434
19,643
489
1,631
4,616
12,907
3,101
493
2003
Actual
1,565
22,589
358
1,585
4,958
15,688
3,675
586
2018
Projected
3,323
20,018
596
1,650
4,632
13,140
3,096
529
2004
Actual
University of Virginia
Proposed Fall Census Headcount Enrollment Projections
1,643
22,659
368
1,585
5,018
15,688
3,675
586
2020
Projected
3,671
20,397
554
1,699
4,791
13,353
3,091
503
2006
Actual
1,682
22,676
February 3, 2015
373
1,585
5,030
15,688
3,675
586
2021
Projected
3,423
20,834
644
1,724
4,830
13,636
3,248
552
2007
Actual
Institutional Assessment and Studies
1,607
22,646
363
1,585
5,010
15,688
3,675
586
2019
Projected
3,366
20,399
605
1,694
4,699
13,401
3,112
532
2005
Actual
1,717
22,694
378
1,585
5,043
15,688
3,675
586
2022
Projected
3,484
21,057
666
1,725
4,904
13,762
3,256
534
2008
Actual
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
Enrollment Projections – University of
Virginia’s College at Wise
BACKGROUND: Since 1954, The University of Virginia’s College at
Wise has demonstrated its commitment to providing quality
educational opportunities to students. The guiding principles
of academic excellence, strengthened admissions standards, and
an expansion of student life activities, including an increased
focus on student leadership initiatives within a residential
campus environment have been the driving forces behind the
College’s success over the past several years.
Every two years, in the odd numbered years, the State
Council of Higher Education for Virginia (SCHEV) asks public
institutions of higher education to update their enrollment
projections and add two years to the projection timeline. New
enrollment projections for fall 2015 through fall 2022 must be
approved by the BOV and SCHEV this spring. In February 2015,
SCHEV requested that headcount enrollment projections be amended
through fiscal year 2021-22 and submitted by May 22, 2015, and
that the projections be conservative.
DISCUSSION: With final enrollment of 2,164 and student fulltime equivalent (FTE) of 1,514 for fall 2014, the College is
projecting growth to be approximately 7% in enrollment and in
FTE by fall 2021. These updated headcount enrollment
projections are an integral part of the College’s Strategic
Plan, Envisioning 2020.
The Office of Institutional Research examined the
College’s enrollment trends and developed the following
headcount enrollment and student FTE projections in consultation
with the Chancellor and senior staff.
5
Term
Campus
Total
Headcount
Student
FTE
Fall
2015
Degree Seeking
Non-degree
Seeking
1,460
1,347
720
180
Fall
2016
Degree Seeking
Non-degree
Seeking
1,475
1,361
725
181
Fall
2017
Degree Seeking
Non-degree
Seeking
1,490
1,375
730
182
Fall
2018
Degree Seeking
Non-degree
Seeking
1,505
1,388
735
184
Fall
2019
Degree Seeking
Non-degree
Seeking
1,520
1,402
740
185
Fall
2020
Degree Seeking
Non-degree
Seeking
1,535
1,416
745
186
Fall
2021
Degree Seeking
Non-degree
Seeking
1,550
1,430
2,180
1,527
2,200
1,542
2,220
1,557
2,240
1,572
2,260
1,587
2,280
1,602
2,305
755
1,619
189
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
6
COLLEGE AT WISE ENROLLMENT PROJECTIONS FOR FALL 2015-2021
WHEREAS, The University of Virginia’s College at Wise is
committed to the managed growth of its student body; and
WHEREAS, The University of Virginia’s College at Wise is
committed to recruiting and retaining an academically talented
and diverse student body;
RESOLVED that the proposed enrollment projections for The
University of Virginia’s College at Wise for the period of fall
2015 through fall 2021 be approved as follows:
Term
Fall 2015
Fall 2016
Fall 2017
Fall 2018
Fall 2019
Fall 2020
Fall 2021
Total Headcount
2,180
2,200
2,220
2,240
2,260
2,280
2,305
7
Student FTE
1,527
1,542
1,557
1,572
1,587
1,602
1,619
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.B. 2015-2016 Tuition and Required Fees for
Undergraduate, Graduate, Professional, and
Special Programs
BACKGROUND: The Board of Visitors sets undergraduate, graduate,
professional, and special program tuition and fees for the
Academic Division and for the College at Wise. The enabling
resolution covers the 2015-16 academic year and 2016 summer
session tuition rates, as well as required fees and activity
fees.
DISCUSSION:
Undergraduate Programs
The 2015-2016 proposal includes a 3.9% increase in base
tuition for all undergraduate students, bringing Virginian
tuition to $10,892, and non-Virginian tuition to $40,506. 201516 tuition and fees for a Virginian undergraduate will be
$13,468, representing an increase of 3.6% or $470. 2015-16
tuition and fees for a non-Virginian undergraduate will be
$43,764, representing an increase of 3.7% or $1,580.
The differential tuition charged to students in the School
of Engineering and Applied Science (SEAS) will increase by
$2,000 to $4,000 over the base tuition. In 2015-16, the SEAS
differential will be charged as follows:
2015-16
SEAS
Differential
Tuition Rate
First-Year
Second-Year
Third-Year
Fourth-Year
SEAS Students SEAS Students SEAS Students SEAS Students
$4,000
$2,000
$2,000
$0
The Batten School of Public Policy and Leadership proposes
a tuition differential to build out and fully implement a highly
interactive, pedagogical approach. Next year, 2015-16, is the
first year of a proposed two-year phased differential of $5,000.
Starting in 2015-16, Batten School students concurrently
enrolled in a B.A./B.S. degree program will pay $2,500 more than
the base tuition and fee rate, or $15,968, for Virginians and
$46,264 for non-Virginians.
8
The McIntire School of Commerce tuition differential
remains unchanged at $5,000 over base tuition.
The price of education (tuition, required fees, housing and
dining, and estimated books, travel, and other) for a Virginian
first-year undergraduate student will increase $895, or 3.3%,
over 2014-2015. The price of education (tuition, required fees,
housing and dining, and estimated books, travel, and other) for
a non-Virginian first-year undergraduate student will increase
$1,985, or 3.5%, over 2014-2015.
Graduate Programs
Graduate School of Arts & Sciences
The Graduate School of Arts & Sciences (GSAS) charges a
flat tuition rate for all doctoral students in years 1-3,
regardless of the students’ mix of class credits and/or research
hours. The proposal includes 2015-16 tuition and fees for
Virginian students of $17,094, a 2.5% increase over the amount
paid in the current year. The proposal includes 2015-16 tuition
and fees for non-Virginian students of $27,574, a 2.4% increase
over the amount paid in the current year.
GSAS charges a lower flat tuition rate for Ph.D. students
in years 4 to completion. The proposal includes 2015-16 tuition
and fees for Virginian students of $7,100, a 2.5% increase over
the amount paid in the current year. The proposal includes
2015-16 tuition and fees for non-Virginian students of $7,782, a
2.3% increase over the amount paid in the current year.
The proposed GSAS flat tuition rates also will be charged
to Ph.D. in Architecture and Ph.D. in Nursing students.
Additional investments will be made in financial aid packages to
graduate students in these schools.
Proposed tuition rates for other graduate and special
programs, including the new Data Science Institute, the Clinical
Nurse Leader program, master’s and Ph.D. programs in
engineering, and master’s programs in the McIntire School of
Commerce, can be found in the accompanying resolution.
Batten School of Leadership and Public Policy
The Batten School will charge a flat tuition rate for all
students in the Master of Public Policy Post Graduate Program,
as well as students in their second year of the Accelerated
9
Bachelor/Master of Public Policy Program, regardless of the mix
of class credits and/or research hours. As the enrollment of
the school hits planning targets, the endowment-funded financial
aid will be stretched to support more students, the tuition
discount rate will decrease and will be replaced, as the market
permits, with additional tuition revenue. A high-tuition/highfinancial aid pricing strategy, paired with aggressive
admissions outreach efforts aimed at attracting a socioeconomically diverse pool of students will balance the Batten
School's revenue streams while properly aligning its offering in
the competitive Master of Public Policy prospective student
market. Average net price for Batten School M.P.P. students in
2014-15 was $7,004 for in-state students and $12,942 for out-ofstate students, which equates to a discount rate of 54%.
To better reflect rates that are competitive with similar
programs, the proposal includes 2015-16 tuition and fees for
Virginian students of $25,664, a 38.7% increase over the amount
paid in the current year. The proposal also includes 2015-16
tuition and fees for non-Virginian students of $46,522, a 40.3%
increase over the amount paid in the current year. We anticipate
a similar net price in FY 2015-16 even after this substantial
tuition increase. In the next five years, as admission to the
M.P.P. program becomes increasingly competitive and the Batten
School’s reputation rises, we anticipate a decreased discount
rate and ability to realize net graduate tuition that aligns
with peers.
Medical School
For students in the School of Medicine, the proposal
reflects an increase in tuition and fees for Virginians of $922
(2.0%) and for non-Virginians an increase of $1,120 (2.0%). The
proposal continues to phase in the Clinical Performance
Education Center fee of $1,400 for medical students in years
one, two, and three and $1,000 for students in year four.
Darden School
The Darden School proposes an increase in tuition and fees
for full-time M.B.A. students of $3,256 for both Virginians and
non-Virginians, 5.9% and 5.6% respectively, which maintains the
$3,000 differential between in-state and out-of-state tuition
and fees. The incremental revenue generated will be used to
fund investments in faculty and staff compensation, curriculum
enhancement, and other essential program costs.
10
Tuition and fee rates for the Darden School’s M.B.A. for
Executives (MBAE) program, the two-year Global M.B.A. for
Executives (GMBAE) program, and the Ph.D. program are detailed
on the accompanying resolution, all of which approximate a 3%
increase over current year rates.
Law School
Similar to the Darden School, the Law School maintains the
differential between in-state and out-of-state tuition and fees
of $3,000 for its J.D. and L.L.M. programs. The School’s
proposal represents an increase of $2,200 for both Virginians
and non-Virginians or approximately 4.0%.
As the Law School increases in-state tuition, it will
increase its commitment to scholarships and loan forgiveness at
a percentage rate at least equal to the annual increase in
tuition and required fees. The incremental revenue generated
will be used to fund increases in financial aid, utilities and
facility maintenance, faculty and staff compensation, and
electronic library resources.
Fees
Mandatory Comprehensive Fee
The proposal includes an increase of $62 in the mandatory
comprehensive fee for regular session Virginians to $2,526 (a
2.5% increase) and non-Virginians to $3,208 (a 2.0% increase).
The comprehensive fee is comprised of two parts, one related to
educational and general (E&G) activities or those services that
directly support instruction, and one to support auxiliary
enterprises which provide services to students, but are not
supported by the state.
An additional $7 is requested in E&G fees increasing the
in-state fee from $448 to $455 and the out-of-state fee from
$1,130 to $1,137. The increase would provide $3 for the
Classroom Renewal Fee and $4 for the Academic Credentialing Fee.
Investment in competent support optimizes the University's
capital investment in supporting faculty in the use of
technology. The proposed increase is the first increase since
2010 and will add staff to support the 16 classrooms in the
recently renovated New Cabell Hall, all of which are now
equipped with technology. The Academic Credentialing Fee is
proposed to increase to $24 ($4 increase, 20.0%) to support the
additional costs created by the new practice of mailing diplomas
11
to all graduates. The increase will also cover the cost of
mailing diplomas internationally, as well as the development and
deployment of the secured pdf diploma option.
The non-E&G portion of the fee is proposed to increase by
$55 (2.7%) to $2,071 for Virginians and non-Virginians. The
increase is allocated in the following manner:
•
•
•
•
•
$29 to Student Health to support additional staff devoted
to safety/sexual assault initiatives, as well as salary
and benefit increases for current staff;
$34 to Intramural-Recreational Sports to continue the
transition of facilities (Slaughter Recreation Center) to
be fully self-supporting;
$3 for University transit to support staff salaries and
benefits, compliance with federal requirements to deliver
service to disabled persons who cannot utilize fixed
route service, and access to Charlottesville Area Transit
services for students;
$2 for Newcomb Hall to support personnel and operating
cost increases;
$1 for the student programming fee.
These increases are offset by a $14 decrease in the
auxiliary debt service fee as we realign the fee to match
current commitments.
School of Architecture
The School of Architecture proposes a new Design
Technologies Fee to support the costs of integrating technologybased tools and software into its curriculum. As proposed, all
graduate and undergraduate students in Architecture, Landscape
Architecture, and first-year undeclared students will pay an
annual fee of $560. A lower annual fee of $140 will be assessed
to all Urban and Environmental Planning students since these
students utilize fewer technology-based tools during their
course of study.
The University of Virginia College at Wise
For 2015-2016, The University of Virginia's College at Wise
recommends a $352 (4.0%) increase in tuition and mandatory fees
to $9,220 for Virginians. The College further recommends a $952
(3.9%) increase in tuition and mandatory fees to $25,454 for
12
non-Virginians. The College Advisory Board will meet on March
20, 2015 to consider the tuition and fees proposal.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
13
TUITION, REQUIRED FEES, AND OTHER CHARGES FOR THE ACADEMIC DIVISION FOR FISCAL YEAR 2015-2016
RESOLVED, the tuition and required fees and other charges applicable to the Academic Division are approved as shown below, effective July 1, 2015:
Virginian
Non-Virginian
2014-15 Amount of Percent of
Approved Increase
Increase
2015-16
Proposed
2014-15 Amount of Percent of
Approved Increase
Increase
2015-16
Proposed
REGULAR SESSION:
Undergraduate School (excluding McIntire School of Commerce, School of Engineering and Applied Science, and BA in Public Policy and Leadership )
Full-Time Tuition and All Required Fees for students enrolled in 12 or more credit hours per semester, including University Activity Fee and excluding School Activity Fee (which varies by
Tuition
Required E&G Fees
$
$
$
$
$
$
14
Required Auxiliary Fees
Required Activity Fee
Full-time Students
Orientation Fee
Proposed Dining - full plan
Proposed Housing - weighted average
Total
$
10,484
448
10,932
2,016
50
12,998
210
4,560
5,492
23,260
$
$
$
$
$
$
$
$
$
$
408
7
415
55
470
160
189
819
3.9%
1.6%
3.8%
2.7%
0.0%
3.6%
0.0%
3.5%
3.4%
3.5%
$
$
$
$
$
$
$
10,892
455
11,347
2,071
50
13,468
210
4,720
5,681
24,079
$
$
38,988
1,130
40,118
2,016
50
42,184
210
4,560
5,492
52,446
$
$
$
$
$
$
$
$
$
$
1,518
7
1,525
55
1,580
160
189
1,929
$
40,506
1,137
41,643
2,071
50
43,764
210
4,720
5,681
54,375
Undergraduate Per Credit Hour (for approved part-time programs/loads only)
$
349
$
14
3.9% $
363
$
1,224
$
126
10.3% $
1,350
McIntire School of Commerce Full-time Tuition and All Required Fees:
McIntire Undergraduate Per Credit Hour (for approved part-time programs/loads
$
$
17,998
516
$
$
470
15
3.1% $
3.0% $
18,468
530
$
$
47,184
1,466
$
$
1,580
51
5.2% $
5.4% $
48,764
1,517
$
14,998
$
2,470
3.7% $
17,468
$
44,184
$
3,580
5.6% $
47,764
$
416
$
80
3.8% $
496
$
1,366
$
117
5.8% $
1,484
$
14,998
$
470
3.7% $
15,468
$
44,184
$
1,580
5.6% $
45,764
n/a
n/a $
15,968
n/a
n/a $
46,264
$
$
$
$
3.9%
0.6%
3.8%
2.7%
0.0%
3.7%
0.0%
3.5%
3.4%
3.7%
$
$
$
$
$
$
only):
School of Engineering and Applied Science Full-time Tuition and All Required
Fees (first-year students only) $4K differential also charged to PRODUCED
students:
Engineering Undergraduate Per Credit Hour (First-year students only) (for
approved part-time programs/loads only):
School of Engineering and Applied Science Full-time Tuition and All Required
Fees (second- and third-year students only) $2K differential also charged to
PRODUCED students:
BA in Public Policy and Leadership (first-year students only) $2.5K
differential:
n/a
n/a
TUITION, REQUIRED FEES, AND OTHER CHARGES FOR THE ACADEMIC DIVISION FOR FISCAL YEAR 2015-2016
RESOLVED, the tuition and required fees and other charges applicable to the Academic Division are approved as shown below, effective July 1, 2015:
Virginian
Non-Virginian
2014-15 Amount of Percent of
Approved Increase
Increase
SPECIAL SESSION and OTHER (per credit hour unless otherwise noted):
SCPS Undergraduate
SCPS Community Scholars - Undergrad and High School
SCPS National Criminal Justice Command College program - Undergraduate
level (total program cost)
Study Abroad
2015-16
Proposed
2014-15 Amount of Percent of
Approved Increase
Increase
2015-16
Proposed
$
$
349 $
349 $
13
12
3.7% $
3.4% $
362
361
$
$
349 $
349 $
13
12
3.7% $
3.4% $
362
361
$
$
5,518 $
323 $
242
13
4.4% $
3.9% $
5,760
336
$
$
5,518 $
412 $
242
16
4.4% $
3.9% $
5,760
428
2016 Summer Session, 2016 January Term, and Mt. Lake Biological Station
Undergraduate (per credit)
$
349 $
14
3.9% $
363
$
1,247 $
49
3.9% $
1,296
15
TUITION, REQUIRED FEES, AND OTHER CHARGES FOR THE ACADEMIC DIVISION FOR FISCAL YEAR 2015-2016
RESOLVED, the tuition and required fees and other charges applicable to the Academic Division are approved as shown below, effective July 1, 2015:
Unless otherwise noted, all per credit hour tuition rates for full-time programs are derived by dividing the applicable annual tuition rate by the average course load. Such per credit hour rates are assessed only to
students who are enrolled in an approved part-time program or have been approved for a reduced load.
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
Non-Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
REGULAR SESSION
Graduate School - Tuition and All Required Fees, including University Activity Fee and excluding School Activity Fee (which varies by school):
Graduate School of Arts & Sciences (PhD students in years 1-3, including PhD in Architecture and PhD in
Nursing)
$ 16,678 $
416
2.5% $ 17,094
$ 26,918 $
656
2.4% $ 27,574
Graduate School of Arts & Sciences (PhD students in years 4-completion, including PhD in Architecture and
PhD in Nursing)
$
6,928 $
172
2.5% $ 7,100
$
7,610 $
172
2.3% $ 7,782
Graduate School of Arts & Sciences (Master's degrees and graduate certificate programs, including MPH/MS $ 17,152 $
programs in the Dept of Public Health Sciences)
648
3.8% $ 17,800
$ 27,402 $
1,030
3.8% $ 28,432
16
M.S. in Data Science
$ 24,868 $
74
0.3% $ 24,942
$ 39,609 $
75
0.2% $ 39,684
Biomedical Sciences Graduate Program (Years 1-2 for students with a master's degree and MSTP students,
years 1-3 for all other students)
$ 16,678 $
488
2.9% $ 17,166
$ 26,918 $
774
2.9% $ 27,692
Biomedical Sciences Graduate Program (Years 3-completion for students with a master's degree and MSTP
students, years 4-completion for all other students)
$
4,102 $
110
2.7% $ 4,212
$
110
2.7% $ 4,212
Batten School's Master of Public Policy Post Graduate Program and Accelerated Bachelor/Master of Public
Policy Program (second year only)
$ 18,504 $
7,160
38.7% $ 25,664
$ 33,158 $ 13,364
40.3% $ 46,522
4,102 $
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
Non-Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
School of Nursing Clinical Nurse Leader Program
Clinical Nurse Leader Program Credit Hour
$ 21,654 $
$
680 $
62
-
0.3% $ 21,716
0.0% $ 680
$ 35,756 $
$ 1,160 $
62
-
0.2% $ 35,818
0.0% $ 1,160
School of Engineering and Applied Science Full-time Students (> or = 9 class credits + 3 research hrs/semester)
School of Engineering and Applied Science Full-time Research-Only Students (> or = 12 research hrs/semester)
$ 17,298 $
$ 6,282 $
494
134
2.9% $ 17,792
2.1% $ 6,416
$ 27,304 $
$ 6,282 $
742
134
2.7% $ 28,046
2.1% $ 6,416
School of Engineering and Applied Science Class Credit Hour (if not full-time or research-only )
$
769 $
23
3.0% $
792
$
1,287 $
39
3.0% $ 1,326
School of Engineering and Applied Science Research Credit Hour (if not full-time or research-only )
$
157 $
3
1.9% $
160
$
157 $
3
All Other Full-time Students (> or = 9 class credits + 3 research hrs/semester, excluding Year 3 Curry Doctoral Students)
Curry School - Year 3 Doctoral Students (> or = 6 class credits + 6 research hrs/semester)
All Other Full-time Research Only Students (> or = 12 research hrs/semester)
$ 16,758 $
n/a
$ 4,122 $
674
$ 26,764 $
n/a
$ 4,122 $
782
134
4.0% $ 17,432
$ 13,040
3.3% $ 4,256
134
2.9% $ 27,546
$ 20,010
3.3% $ 4,256
All Other Students Class Credit Hour (if not full-time or research-only )
All Other Students Research Credit Hour (if not full-time or research-only )
$
$
423
3
27.5% $ 1,961
4.5% $
70
$
$
648
3
25.2% $ 3,222
4.5% $
70
REGULAR SESSION
17
1,538 $
67 $
2,574 $
67 $
1.9% $
160
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
Non-Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
REGULAR SESSION
School of Commerce - Tuition and All Required Fees, including University and School Activity Fees:
M.S. in Accounting, including $1,035 Program
M.S. in Accounting Optional Accounting Immersion Program (per course)
$ 29,440 $
$ 2,190 $
736
-
2.5% $ 30,176
0.0% $ 2,190
$ 35,630 $
$ 2,190 $
890
-
2.5% $ 36,520
0.0% $ 2,190
M.S. in Commerce, including $8,225 International Study Fee
$ 40,995 $
815
2.0% $ 41,810
$ 46,395 $
981
2.1% $ 47,376
M.S. in MIT, including Program Fees
M.S. in MIT, Optional Independent Study (per credit hour)
$ 43,050 $
$ 1,091 $
1,304
29
3.0% $ 44,354
2.6% $ 1,120
$ 43,050 $
$ 1,091 $
1,304
29
3.0% $ 44,354
2.6% $ 1,120
School of Medicine - Tuition and All Required Fees, including University and School Activity Fees:
Full-time Students
MD/MBA Program - Spring 2016 Semester
$ 45,482 $
$ 23,337 $
922
1,515
2.0% $ 46,404
6.5% $ 24,852
$ 56,090 $
$ 26,898 $
1,120
1,064
2.0% $ 57,210
4.0% $ 27,962
Darden Graduate School of Business Administration - Tuition and All Required Fees, including University and School Activity Fees:
Full-time MBA Students
$ 54,894 $
3,256
2,175
MBA for Executives (entering class), including Program Fee
$ 67,475 $
5.9% $ 58,150
3.2% $ 69,650
$ 57,894 $
$ 67,475 $
3,256
2,175
5.6% $ 61,150
3.2% $ 69,650
18
Global MBA for Executives (entering class), including Program Fee
$ 72,475 $
2,175
3.0% $ 74,650
$ 72,475 $
2,175
3.0% $ 74,650
PhD Students (years 1-2)
$ 16,678 $
486
2.9% $ 17,164
$ 26,918 $
772
2.9% $ 27,690
PhD Students (years 3-completion)
$
6,928 $
194
2.8% $ 7,122
$
7,610 $
194
2.5% $ 7,804
School of Law - Tuition and All Required Fees, including University and School Activity Fees:
Full-time JD (1L and 2L) and LLM Students
$ 51,800 $
2,200
4.2% $ 54,000
$ 54,800 $
2,200
4.0% $ 57,000
Full-time JD (3L) Students
$ 49,800 $
2,200
4.4% $ 52,000
$ 54,800 $
2,200
4.0% $ 57,000
Full-time Research-Only Students
$
7,400 $
300
4.1% $ 7,700
$
300
4.1% $ 7,700
7,400 $
SPECIAL SESSION AND OTHER
School of Engineering and Applied Science Accelerated Master's Program in Systems Engineering (Tuition
and All Required Fees)
$ 38,250 $
750
2.0% $ 39,000
$ 38,250 $
750
2.0% $ 39,000
School of Continuing and Professional Studies (SCPS) - Tuition and All Required Fees:
Post-Baccalaureate Pre-Medical Certificate Program
National Criminal Justice Command College Program (graduate level)
$ 26,815 $
$ 6,450 $
1,001
256
3.7% $ 27,816
4.0% $ 6,706
$ 31,966 $
$ 12,720 $
1,030
660
3.2% $ 32,996
5.2% $ 13,380
SCPS - Tuition per credit hour
Bachelor of Interdisciplinary Studies
Bachelor of Professional Studies - Health Sciences Management
Commonwealth Graduate Engineering Program
Graduate
Community Scholars Graduate
$
$
$
$
$
5.1%
5.3%
8.1%
3.4%
3.6%
375
475
531
410
392
19
$
$
$
$
$
19
25
43
14
14
Other
K-12 Educators (Undergraduate and Graduate, per credit hour)
Curry Off-Grounds Tuition (per credit hour)
Music Lessons (13 1-hr Lessons/Semester)
Fully Online Graduate Degree and Certificate Programs (per credit hour, Tuition and All Required Fees:)
Credits Taken In Excess of 125% of Program Requirements (per credit hour)
309 $
n/a
$
748 $
$
500 $
$
309 $
9
2016 Summer Session, 2016 January Term, and Mt. Lake Biological Station
Graduate Class Credit Hour
Graduate Research Credit Hour
Research Only (full-time load of research hours, per summer, > or = 6 credits)
Clinical Nurse Leader program (per credit hour)
School of Medicine (per summer)
Continuous Enrollment Fee (per summer)
Summer Language Institute Fee
$
392 $
$
67 $
$
804 $
$
680 $
$ 18,097 $
$
206 $
$
60 $
$
$
$
$
$
$
394
500
574
424
406
$
$
$
$
$
318
500
765
500
318
$
17
9
2.8% $
$
2.3% $
0.0% $
2.8% $
14
3 $
36
363
-
3.6%
0
4.5%
0.0%
2.0%
0.0%
0.0%
$
406
$
70
$
840
$
680
$ 18,460
$
206
$
60
1,158
1,258
874
828
1,235
$
$
$
$
$
58
(758)
70
42
63
684
n/a
$
748
$
500
$
684
$
14
$
$
$
17
14
$
794 $
$
67 $
$
745 $
$ 1,160 $
$ 22,658 $
$
206 $
$
60 $
30
3
35
454
-
5.0%
-60.3%
8.0%
5.1%
5.1%
$ 1,216
$
500
$
944
$
870
$ 1,298
2.0% $
$
2.3% $
0.0% $
2.0% $
$
3.8%
0
4.7%
0.0%
2.0%
0.0%
0.0%
698
500
765
500
698
$
824
$
70
$
780
$ 1,160
$ 23,112
$
206
$
60
OTHER: Other contracted course and cooperative program tuition and required fee rates, including tuition for specialized graduate and professional credit courses, approved on a basis consistent with
University contracting policies and procedures by the Executive Vice President and Chief Operating Officer. Discounts to summer session and January term rates, approved on a basis consistent with
University policies and procedures by the Executive Vice President and Chief Operating Officer.
All Students
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
OTHER CHARGES
Engineering Course Fee (per credit hour) - fourth-year students
Design Technologies Fee -ARCH-BS, ARCH-MAR, LAND-MLAR
Design Technologies Fee -PLAN-BUEP, PLAN-MUEP, and UNDAR-ARU
Nursing Laboratory Fee (per credit hour) - excluding CNL students
Clinical Services Fee - Nursing (BSN students, excludes RN to BSN)
Clinical Services Fee - Nursing (Clinical Nurse Leader program students)
Clinical Services Fee - Medicine
Clinical Performance Education Center Fee - Medicine (Year 1 students)
Clinical Performance Education Center Fee - Medicine (Year 2 students)
Clinical Performance Education Center Fee - Medicine (Year 3 students)
Clinical Performance Education Center Fee - Medicine (Year 4 students)
Orientation Fee (effective for first-year students entering Summer 2016)
Orientation Fee (effective for transfer students entering Summer 2016)
SCPS Continuing Education Unit Fee
Continuous Enrollment Fee (per term)/ Affiliated Status Fee
International Student Fee (annual)
Study Abroad Administrative Fee (for students attending non-UVA programs)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
32
n/a
n/a
60
190
220
184
1,400
1,400
1,000
750
210
130
50
206
100
400
$
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(4)
400
250
-
0.0% $
$
$
0.0% $
0.0% $
0.0% $
-2.2% $
0.0% $
0.0% $
40.0% $
33.3% $
0.0% $
0.0% $
0.0% $
0.0% $
0.0% $
0.0% $
32
560
140
60
190
220
180
1,400
1,400
1,400
1,000
210
130
50
206
100
400
20
All Students
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
21
OTHER CHARGES
Application Fees:
Undergraduate (excluding SCPS BIS and certificate programs)
Graduate Architecture
Graduate Arts & Sciences
Graduate Batten
Graduate Curry
Graduate Engineering
Graduate Nursing
SCPS (undergraduate and graduate programs)
International Study
Law
Darden
Darden (PhD program only)
Medicine
Undergraduate Commerce
Graduate Commerce
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
70
75
85
60
75
60
75
70
90
80
250
100
80
75
75
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
15
25
-
Activity Fees:
All Full-time Students
Arts & Sciences
Graduate Arts & Sciences
Architecture
Batten
Commerce
Graduate Commerce
Darden (MBA)
Education
Engineering
Law
Medicine
Nursing
$
$
$
$
$
$
$
$
$
$
$
$
$
50
10
8
66
36
86
100
56
20
20
40
52
24
$
$
$
$
$
$
$
$
$
$
$
$
$
Residential College Fees:
Hereford
Brown
International
Mosaic
French
Spanish
Monroe Lane
$
$
$
$
$
$
$
120
120
220
220
100
100
100
$
$
$
$
$
$
$
0.0%
0.0%
0.0%
25.0%
0.0%
41.7%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
70
75
85
75
75
85
75
70
90
80
250
100
80
75
75
-
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
$
$
$
$
$
$
50
10
8
66
36
86
100
56
20
20
40
52
24
-
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
120
120
220
220
100
100
100
ALLOCATION OF REQUIRED FEE FOR 2015-16 REGULAR SESSION OF THE ACADEMIC DIVISION
RESOLVED, the annual required fee for all on-Grounds, degree or non-degree seeking students (with the exception of those assessed the special session fee and onGrounds graduate students conducting research off Grounds) and Post-Baccalaureate Pre-Medical Certificate students is established, effective July 1, 2015, in the amount
of $2,526 for Virginia students and $3,208 for Non-Virginia students
RESOLVED FURTHER, the full-time mandatory regular session fee is allocated for 2015-16 as follows:
22
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
Non-Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
OOS Debt Service - Capital Outlay and ETF
Technology Fee
E&G Facilities Construction and Renovation
Classroom Renewal Fee
Arts Fee
Academic Credentialing Fee
Subtotal Required E&G Fees
$
$
$
$
$
$
$
190
190
32
16
20
448
$
$
$
$
$
$
$
-
Athletics
Student Health
Recreational Facilities
Newcomb Hall
University Transit
Auxiliary Debt Service
Student Programming
Microsoft Licensing Fee
Data Center Fee
Safe Ride
WTJU
Subtotal Required Auxiliary Fees
$
$
$
$
$
$
$
$
$
$
$
$
657
417
384
208
178
81
27
20
24
12
8
2,016
REGULAR SESSION TOTAL
$
$
$
$
$
$
$
$
190
190
35
16
24
455
$
$
$
$
$
$
$
682
190
190
32
16
20
1,130
$
$
$
$
$
$
$
-
4
7
0.0%
0.0%
0.0%
9.4%
0.0%
20.0%
1.6%
$
$
$
$
$
$
$
$
$
$
$
$
29
34
2
3
(14)
1
55
0.0%
7.0%
8.9%
1.0%
1.7%
-17.3%
3.7%
0.0%
0.0%
0.0%
0.0%
2.7%
$
657
$
446
$
418
$
210
$
181
$
67
$
28
$
20
$
24
$
12
$
8
$ 2,071
$
$
$
$
$
$
$
$
$
$
$
$
657
417
384
208
178
81
27
20
24
12
8
2,016
2,464 $
62
2.5% $ 2,526
$
3
-
4
7
0.0%
0.0%
0.0%
9.4%
0.0%
20.0%
0.6%
$
682
$
190
$
190
$
35
$
16
$
24
$ 1,137
$
$
$
$
$
$
$
$
$
$
$
$
29
34
2
3
(14)
1
55
0.0%
7.0%
8.9%
1.0%
1.7%
-17.3%
3.7%
0.0%
0.0%
0.0%
0.0%
2.7%
$
657
$
446
$
418
$
210
$
181
$
67
$
28
$
20
$
24
$
12
$
8
$ 2,071
3,146 $
62
3
-
2.0% $ 3,208
RESOLVED FURTHER, the Executive Vice President and Chief Operating Officer is hereby authorized to approve miscellaneous fees not
anticipated in this resolution with the prior approval of the Chair of the Finance Committee.
ALLOCATION OF REQUIRED FEE FOR THE 2015-2015 SPECIAL SESSIONS OF THE ACADEMIC DIVISION
WHEREAS, certain programs are not full-time residential programs but are located on the Charlottesville Grounds; a different fee schedule is appropriate;
RESOLVED, the special session fee for the Academic Division is established, effective with the fall 2015 session, in the amount of $232 for Virginia students and $292
for Non-Virginia students and assessed to: 1) students enrolled in the summer session; 2) students enrolled in on-Grounds executive programs; 3) students enrolled in onGrounds Bachelor of Interdisciplinary Studies and SEAS Produced in Virginia programs; 4) on-Grounds, degree-seeking, graduate students enrolled in a total of three or
fewer credit hours; and 5) students enrolled in the McIntire M.S. Information Technology - Northern Virginia location; and
RESOLVED, the students enrolled in the summer session also will be assessed a fee for services provided by Student Health, effective summer 2016, in the amount of
$148; and
RESOLVED FURTHER, the mandatory special session fee is allocated for 2015-16 as follows:
23
Virginian
Non-Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
2014-15 Amount of Percent of 2015-16
Approved Increase Increase Proposed
OOS Debt Service - Capital Outlay and ETF
Technology Fee
E&G Facilities Construction and Renovation
Classroom Renewal Fee
Arts Fee
Academic Credentialing Fee
Recreational Facilities
Newcomb Hall
University Transit
Microsoft Licensing Fee
Safe Ride
WTJU
$
$
$
$
$
$
$
$
$
$
$
$
SPECIAL SESSION TOTAL - Other Than Summer Session
$
228 $
Student Health
$
SPECIAL SESSION TOTAL - Summer Session
$
11
29
9
8
5
65
36
52
7
5
1
$
$
$
$
$
$
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
$
$
$
11
29
10
8
6
66
36
53
7
5
1
$
$
$
$
$
$
$
$
$
$
$
$
59
11
29
9
8
5
65
36
52
7
5
1
4
1.8% $
232
$
287 $
138 $
10
7.2% $
148
$
366 $
14
3.8% $
380
$
1
1
1
1
-
0.0%
0.0%
0.0%
11.1%
0.0%
20.0%
1.5%
0.0%
1.9%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
$
$
$
$
$
1
$
$
$
$
$
$
$
$
$
$
$
$
60
11
29
10
8
6
66
36
53
7
5
1
5
1.7% $
292
138 $
10
7.2% $
148
425 $
15
3.5% $
440
1
1
1
1
-
1.7%
0.0%
0.0%
11.1%
0.0%
20.0%
1.5%
0.0%
1.9%
0.0%
0.0%
0.0%
ALLOCATION OF REQUIRED FEE FOR THE 2016 JANUARY TERM OF THE ACADEMIC DIVISION
WHEREAS, the January Term is located on the Charlottesville Grounds and offered to non-University students; a different fee schedule is appropriate;
RESOLVED, the January Term fee for the Academic Division is established, effective with the January 2016 session, in the amount of $183 for Virginia students and
$212 for Non-Virginia students and assessed to visiting students; and
RESOLVED FURTHER, the mandatory 2016 January Term fee is allocated as follows:
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
OOS Debt Service - Capital Outlay and ETF
Technology Fee
Non-Virginian
2014-15 Amount Percent of 2015-16
Approved of Increase Increase Proposed
24
E&G Facilities Construction and Renovation
Classroom Renewal Fee
Arts Fee
ID Badge Fee
Recreational Facilities
Newcomb Hall
$
$
$
$
$
$
$
$
6
15
5
2
10
35
18
$
$
$
$
$
$
$
$
1
-
0.0%
0.0%
0.0%
20.0%
0.0%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
$
6
15
6
2
10
35
18
$
$
$
$
$
$
$
$
29 $
6 $
15 $
5 $
2 $
10 $
35 $
18 $
1
-
0.0%
0.0%
0.0%
20.0%
0.0%
0.0%
0.0%
0.0%
$
$
$
$
$
$
$
$
29
6
15
6
2
10
35
18
University Transit
Safe Ride
WTJU
Student Health
$
$
$
$
20
2
1
64
$
$
$
$
4
0.0%
0.0%
0.0%
6.3%
$
$
$
$
20
2
1
68
$
$
$
$
20 $
2 $
1 $
64 $
4
0.0%
0.0%
0.0%
6.3%
$
$
$
$
20
2
1
68
JANUARY TERM TOTAL
$
178 $
5
2.8% $
183
$
2.4% $
212
207 $
5
ALLOCATION OF REQUIRED FEE FOR 2015-2016 FULL-TIME, RESEARCH-ONLY, OFF-GROUNDS GRADUATE STUDENTS
WHEREAS, full-time, research-only, graduate students are conducting research not located on the University Grounds; a different fee schedule is appropriate;
RESOLVED, the full-time, research only, off-Grounds graduate fee for the Academic Division is established, effective with the fall 2015 session, in the amount of $680
for Virginia students and $680 for Non-Virginia students; and
RESOLVED FURTHER, the mandatory full-time, research only, off-Grounds graduate fee is allocated for 2015-16 as follows:
Virginian
2014-15 Amount of Percent of 2015-16
Approved Increase
Increase Proposed
2014-15
Approved
Academic Credentialing Fee
Student Health
Microsoft Licensing Fee
$
$
$
$
TOTAL FOR ALL STUDENTS
$
Technology Fee
190
20
417
20
$
$
$
$
4
29
-
0.0%
20.0%
7.0%
0.0%
$
$
$
$
190
24
446
20
$
$
$
$
647 $
33
5.1% $
680
$
190
20
417
20
Non-Virginian
Amount Percent of
of
Increase
Increase
$
0.0%
$
4
20.0%
$
29
7.0%
$
0.0%
647 $
33
2015-16
Proposed
$
$
$
$
190
24
446
20
5.1% $
680
REQUIRED OFF-GROUNDS FEE FOR THE 2015-2016 ACADEMIC DIVISION
25
WHEREAS, certain programs offered by the University are not located on the Charlottesville Grounds; a different fee schedule is appropriate;
RESOLVED, the per credit hour fee is established, effective July 1, 2015, in the amount of $35 for students enrolled in programs located outside of the Charlottesville
Grounds (including School of Nursing, SEAS Produced in Virginia, and SEAS National Institute of Aerospace)
RESOLVED, the per credit hour fee is established, effective July 1, 2015, in the amount of $23 for students enrolled in programs located outside of the Charlottesville
Grounds (excluding full-time, research only, off-Grounds graduate students, School of Nursing, SEAS Produced in Virginia, and SEAS National Institute of Aerospace).
Including K-12 educators, all other online courses, and all other off-Grounds programs.
TUITION, REQUIRED FEES, AND OTHER CHARGES FOR THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE FOR FISCAL YEAR 2015-2016
RESOLVED, the tuition and required fees and other charges applicable to The University of Virginia’s College at Wise are approved as shown below,
effective July 1, 2015:
Virginian
Non-Virginian
2014-15 Amount of Percent of
Approved Increase
Increase
2015-16
Proposed
Full-time Students (12 hrs or more per semester)
Tuition
Required E&G Fees
$
4,862 $
194
4.0% $
$
150 $
4
2.7% $
$
5,012 $
198
4.0% $
Auxiliary Fees
$
3,856 $
154
4.0% $
Total Tuition and Required Fees
$
8,868 $
352
4.0% $
Room (weighted average)
$
6,228 $
(84)
-1.3% $
Board (175 Meal Block & $50 Dining Dollars Per Semester)
$
4,112 $
0.0% $
Total Cost of Education
$ 19,208 $
268
1.4% $
Students taking more than 18 credit hours per semester must pay for the additional hours at the tuition rates listed below:
26
Other Charges
Part-time Students (less than 12 hours per semester)
Off-Campus Instruction per hour
Non-Credit Courses per unit
Application Fee
Registration Fee for part-time students will be $5 per semester hour.
$
$
$
$
208
208
81
25
$8
$8
$3
$0
3.8%
3.8%
3.7%
0.0%
$
$
$
$
2014-15 Amount of Percent of
Approved Increase
Increase
2015-16
Proposed
5,056
154
5,210
4,010
9,220
6,144
4,112
19,476
$
$
$
$
$
$
$
$
19,864 $
782 $
20,646 $
3,856 $
24,502 $
6,228 $
4,112 $
34,842 $
794
4
798
154
952
(84)
868
4.0%
0.5%
3.9%
4.0%
3.9%
-1.3%
0.0%
2.5%
$
$
$
$
$
$
$
$
20,658
786
21,444
4,010
25,454
6,144
4,112
35,710
216
216
84
25
$
$
$
$
840
840
245
25
$34
$34
$10
$0
4.0%
4.0%
4.1%
0.0%
$
$
$
$
874
874
255
25
RESOLVED FURTHER, the Executive Vice President and Chief Operating Officer is authorized to approve reduced tuition rates for residents of Kentucky
and Tennessee who live in counties that are within a 50-mile radius of The University of Virginia’s College at Wise and who are enrolled at the College in
accordance with Section 23-7.4:2.F. of the Code of Virginia.
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.C.1. Faculty and Staff Housing Rates,
2015-2016
BACKGROUND: The University operates 85 faculty and staff
housing units, including individual houses, cottages, Lawn
Pavilions, townhouses, and apartments. State policy requires
that rents charged by the University for faculty and staff
housing reflect the market rate for similarly sized and equipped
properties.
DISCUSSION: University faculty and staff housing rates are
proposed to increase by an average of 3.3% from the 2014-2015
rates.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
FACULTY AND STAFF HOUSING RATES FOR 2015-2016
RESOLVED, the faculty and staff housing rates are approved, as shown
below, effective July 1, 2015. Should a property be vacated during the
year, the Executive Vice President and Chief Operating Officer or his
designee is authorized to increase the rates to market level.
Utilities
Furnished
Rents
Amount
2014-2015
of
Per Month Increase
Percent
of
Increase
Rents
2015-2016
Per Month
Utilities
Paid By
Occupant
Piedmont Estates Properties
1 Bedroom Apt. (7)(F)
AC,C,D,E,G,T,WS
$740
$30
4.05%
$770
V
2 Bedroom Apt. (16)
AC,C,D,E,G,T,WS
$885
$35
3.95%
$920
V
Houses (3BR) (16)
C,D,E,G,HVAC,T,WS
$1,285
$40
3.11%
$1,325
Townhouses (3BR)(5)
C,D,E,G,HVAC,T,WS
$1,180
$45
3.81%
$1,225
$785
$30
3.82%
$815
V
Farmhouse Apt. 1 & 3 (1BR)(F) AC,C,D,E,G,T,WS
V
V
Farmhouse Apt. 2 (3BR)(F)
AC,C,D,E,G,T,WS
$1,125
$25
2.22%
$1,150
V
Farmhouse Apt. 4 (2BR)(F)
AC,C,D,E,G,T,WS
$945
$30
3.17%
$975
V
27
Rents
Amount
Percent
Rents
Utilities
2014-2015
of
of
2015-2016 Paid By
Per Month Increase Increase Per Month Occupant
Utilities
Furnished
Sundry Properties
Vyssotsky Cottage (3BR)
AC,C,D,E,G,T,WS
$1,235
$35
2.83%
$1,270
V
McGuffey Cottage (Eff)(F)
AC,C,D,E,T,V,WS
$640
$20
3.13%
$660
Upper Mews (1BR)(F)
AC,C,D,E,HP,T,WS
$825
$25
3.03%
$850
V
Lower Mews (1BR)(F)
AC,C,D,E,HP,T,WS
$800
$25
3.13%
$825
V
Monroe Hill Range (1BR)
C,D,E,HVAC,T,V,WS
$1,100
$15
1.36%
$1,115
Brown College Apts. (2BR)(2)
C,D,E,HVAC,T,V,WS
$865
$20
2.31%
$885
Hereford Coll. Apts.(2BR)(2)
C,D,E,HVAC,T,V,WS
$960
$20
2.08%
$980
Hereford Coll. Principal Res.
C,D,E,HVAC,T,V,WS
(3BR)
$1,500
$30
2.00%
$1,530
Orchard House Rooms(5)(F)
AC,C,D,E,G,T,WS
$545
$15
2.75%
$560
V
118 Oakhurst, Upper (2BR)
AC,C,D,E,G,T,WS
$960
$30
3.13%
$990
V
118 Oakhurst, Lower (2BR)
AC,C,D,E,G,T,WS
$1,070
$30
2.80%
$1,100
V
424 Shea House (1BR)
C,D,E,G,HVAC,T,V,WS
$880
$20
2.27%
$900
423 Shea House (2BR)
C,D,E,G,HVAC,T,V,WS
$1,015
$25
2.46%
$1,040
Hedge House (2BR)
AC,C,D,E,G,T,WS
$965
$25
2.59%
$990
V
E & G Properties
Montebello (3BR)
AC,D,E,G,V,WS
$1,370
$50
3.65%
$1,420
C,T
Big Morea (4BR)
AC,D,E,G,T,V,WS
$1,335
$60
4.49%
$1,395
C
Little Morea (2BR)
AC,D,E,G,T,V,WS
$1,055
$45
4.27%
$1,100
C
Sunnyside (3BR)
AC,E,O,T,WS
$1,930
$60
3.11%
$1,990
C,D,V
Monroe Hill House(3BR)
D,E,HVAC,T,V,WS
$1,440
$45
3.13%
$1,485
C
Weedon House (6BR)
D,E,HVAC,T,V,WS
$3,100
$90
2.90%
$3,190
C
Morven Guest House (5BR)(F)
D,E,G,HVAC,T,WS
$2,885
$85
2.95%
$2,970
C,V
Pavilion I (3BR)
D,E,HVAC,T,V,WS
$1,710
$50
2.92%
$1,760
C
Pavilion II (3BR)
D,E,HVAC,T,V,WS
$1,500
$65
4.33%
$1,565
C
Pavilion III (3BR)
D,E,HVAC,T,V,WS
$1,390
$50
3.60%
$1,440
C
28
Utilities
Furnished
Rents
2014-2015
Per Month
Amount
of
Increase
Percent
of
Increase
Rents
Utilities
2015-2016 Paid By
Per Month Occupant
E & G Properties (Continued)
Pavilion IV (3BR)
AC,D,E,HP,T,V,WS
$1,105
$40
3.62%
$1,145
C
Pavilion V (5BR)
D,E,HVAC,T,V,WS
$1,835
$55
3.00%
$1,890
C
Pavilion VI (4BR)
D,E,HVAC,T,V,WS
$1,445
$55
3.81%
$1,500
C
Pavilion VIII Upper (3BR)
D,E,HVAC,T,V,WS
$960
$40
4.17%
$1,000
C
Pavilion VIII Lower (1BR)
D,E,HVAC,T,V,WS
$685
$20
2.92%
$705
C
Pavilion IX (3BR)
D,E,HVAC,T,V,WS
$1,390
$50
3.60%
$1,440
C
Pavilion X (4BR)
D,E,HVAC,T,V,WS
$2,040
$60
2.94%
$2,100
C
Notes:
-
The (F) designates properties that are furnished.
Utility abbreviations are as follows: AC (window air conditioning), C (cable TV), D (data), E
(electric), G (gas), HP (heating plant), HVAC (heating, ventilation & air conditioning), O
(oil), T (trash), V (voice) and WS (water, sewer).
29
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.C.2.
Student Housing Rates, 2015-2016
BACKGROUND: The University’s Office of Housing and Residence
Life manages 6,892 on-Grounds beds in a variety of traditional,
apartment, suite, and program-specific accommodations, serving
first year, upper-class, and graduate students. The fall 2014
occupancy was 98%. Approximately 42% of undergraduate students
were housed on-Grounds. The University’s College at Wise
manages 763 beds, offering traditional, apartment, and suite
arrangements. Housing approximately 38% of full-time enrolled
students; the fall 2014 occupancy rate was 76%.
DISCUSSION: For 2014-2015, the average double room rate at
Virginia public colleges and universities is $5,475. The
comparable average at the University is $5,492. The University
of Virginia’s College at Wise charges an average of $6,211.
The University proposes a $189 increase in the average
housing double room rate to $5,681 per nine-month academic year
for 2015-2016. This increase is approximately 3.4%. Individual
rate increases range from 1.9% to 3.9%.
The rate proposal will cover increases in salaries and
fringe benefits, including the hiring of two additional staff,
and rising operating costs, which include primarily utilities.
The proposal will also support the 24% increase in debt service
expense for the sixth Alderman Road residence hall opening fall
2015.
The University of Virginia’s College at Wise proposes a $67
decrease in the average housing room rate to $6,144 for 20152016. The proposed housing rates for most residence halls will
increase by 3.5% to cover operating costs and build capital
reserves. However, Henson Hall occupancy has been adversely
impacted this year by nearby construction on the new library.
The 2015-2016 rental rate will decrease by 25% to encourage
students to utilize Henson Hall until construction is completed
in mid-2017.
30
The proposed resolution also addresses summer 2016 housing
rates for the Mountain Lake Biological Station.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
STUDENT HOUSING RATES FOR 2015-2016 FOR THE ACADEMIC DIVISION AND THE
UNIVERSITY’S COLLEGE AT WISE, AND THE MOUNTAIN LAKE BIOLOGICAL STATION
RESOLVED that rental increases for student housing facilities are
approved, as shown below, effective beginning with the 2015-2016 session.
First-Year Housing
Alderman Road, McCormick Road,
Gooch/Dillard, Hereford College,
Brown College and the International
Residential College, first-year rooms
Actual
2014-2015
Per Student
Per Session
Amount of
Increase
Percent of
Increase
Proposed
2015-2016
Per Student
Per Session
$5,480
$190
3.47%
$5,670
$6,380
$230
3.61%
$6,610
$6,170
$6,020
$220
$220
3.57%
3.65%
$6,390
$6,240
$5,500
$6,170
$190
$220
3.45%
3.57%
$5,690
$6,390
$5,500
$6,450
$6,660
$190
$230
$230
3.45%
3.57%
3.45%
$5,690
$6,680
$6,890
$5,500
$5,700
$190
$220
3.45%
3.86%
$5,690
$5,920
$5,930
$6,660
$200
$230
3.37%
3.45%
$6,130
$6,890
Graduate Housing
Range
9 Month
12 Month
Crackerbox (12 month)
$6,170
$8,230
$8,230
$220
$290
$290
3.57%
3.52%
3.52%
$6,390
$8,520
$8,520
Apartments – Single Student
Bice House, Copeley III & IV,
Faulkner (Hench, Mitchell, Younger),
Lambeth Field
Double Occupancy
Single Occupancy
$5,930
$6,660
$200
$230
3.37%
3.45%
$6,130
$6,890
Upper-class Housing
Brown College
Single Room (w/shared bath)
Lawn
Single Room
Single Room (no fireplace)
IRC - Mary Munford/Roberta Gwathmey
Double Room
Single Room
IRC - Lewis/Hoxton
Double Room
Single Room
Single Room (w/bath)
Hereford (Residential College &
Johnson,Malone,Weedon)
Double Room
Single Room
Language House (French,Spanish,Shea)
Double Room
Single Room
31
Upper-class Housing (Continued)
Actual
2014-2015
Per Student
Per Session
Amount of
Increase
Percent of
Increase
Proposed
2015-2016
Per Student
Per Session
Apartments – Graduate (per month)
Copeley Hill I & II
One Bedroom (furnished)
One Bedroom (unfurnished)
Two Bedroom (furnished)
Two Bedroom (unfurnished)
Three Bedroom (furnished)
Three Bedroom (unfurnished)
University Gardens
One Bedroom (furnished)
One Bedroom (unfurnished)
Two Bedroom (furnished)
Two Bedroom (unfurnished)
College at Wise
McCraray
Asbury, Commonwealth, Culbertson,
Randolph, Theme Housing,
Thompson
Henson
$755
$725
$930
$900
$1,100
$1,060
$15
$15
$20
$20
$30
$20
1.99%
2.07%
2.15%
2.22%
2.73%
1.89%
$770
$740
$950
$920
$1,130
$1,080
$755
$725
$930
$900
$15
$15
$20
$20
1.99%
2.07%
2.15%
2.22%
$770
$740
$950
$920
$5,623
$197
3.50%
$5,820
$6,479
$227
3.50%
$6,706
$6,479
-$1,619
-24.99%
$4,860
$1
Percent of
Increase
4.00%
Proposed
Summer 2015
$26
n/a
n/a
$34
Summer Session Housing Rates
Per person, per night, double occ.
(21-night minimum)
Per person, per night, single occ.
(21-night minimum)
Actual
Summer 2014
$25
new
Amount of
Increase
University of Virginia’s College at Wise Summer Session Housing Rate
Actual
Per person, per session, double occ.
(34 days)
Summer 2014
$958.00
Amount of
Increase
$34.00
Percent of
Increase
3.55%
Proposed
Summer 2015
$992.00
Mountain Lake Biological Station Housing Daily Rates
Actual
Dormitories
Cabins/Apartments
Summer 2015
$8.00
$11.25
32
Amount of
Increase
$0.25
$0.25
Percent of
Increase
3.13%
2.22%
Proposed
Summer 2016
$8.25
$11.50
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.D. Contract Rates for Dining Services,
2015-2016
BACKGROUND: The University provides a variety of contract meal
plans for students, ranging from unlimited dining to a declining
balance spending account. Revenues received from contract
dining, retail operations, vending, concessions, and catering
must cover all operating costs, including food, labor, capital,
and indirect costs. The University contracts with Aramark for
dining services. The College at Wise contracts with Chartwells
for these services.
DISCUSSION: The proposed University meal plan rate increases
for 2015-2016 range from zero to 4.1%, with an average increase
of 3.5%. The proposed rate increases are necessary to cover
increases in food costs, personnel costs, and other operating
expenses. Personal services costs are expected to increase
3.0%, food costs 2.7%, and other operating expenses 4.0%. In
2014-2015, approximately 9,525 University students purchased
contract meal plans.
Increases in the College at Wise meal plan rates range from
zero to 2.1% and reflect increases in food and operating costs
resulting from increased utilization of the commuter plans. The
College serves approximately 720 students on contract meal
plans.
The proposed resolution also addresses summer 2016 dining
rates for the Mountain Lake Biological Station.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
33
CONTRACT RATES FOR DINING SERVICES FOR 2015-2016 FOR THE ACADEMIC
DIVISION, THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE, AND MOUNTAIN LAKE
BIOLOGICAL STATION
RESOLVED, the student contract rates for dining services are
approved, as shown below, effective beginning with the 2015-2016 session.
Actual
2014-15
Amount of
Increase
Percent of
Increase
Proposed
2015-16
Regular Meal Plans (1,2,3)
Ultimate Access w/ $600 Plus Dollars
$4,770
$170
3.56%
$4,940
All Access 7 w/ $300 Plus Dollars
$4,560
$160
3.51%
$4,720
All Access 5 w/ $600 Plus Dollars
$3,970
$140
3.53%
$4,110
Semester 100 w/ $800 Plus Dollars
$2,560
$90
3.52%
$2,650
Semester 50 w/ $700 Plus Dollars
$1,660
$60
3.61%
$1,720
$260
$10
3.85%
$270
Ultimate Access w/ $600 Plus Dollars
$4,880
$170
3.48%
$5,050
All Access 7 w/ $300 Plus Dollars
$4,670
$160
3.43%
$4,830
All Access 5 w/ $600 Plus Dollars
$4,080
$140
3.43%
$4,220
Semester 100 w/ $800 Plus Dollars
$2,670
$90
3.37%
$2,760
Semester 50 w/ $700 Plus Dollars
$1,770
$60
3.39%
$1,830
All Access 7 w/ $300 Plus Dollars
$4,670
$160
3.43%
$4,830
Semester 100 w/ $800 Plus Dollars
$2,670
$90
3.37%
$2,760
new
n/a
n/a
$1,960
Semester 80 w/ $750 Plus Dollars
$2,340
$80
3.42%
$2,420
Semester 50 w/ $700 Plus Dollars
$1,770
$60
3.39%
$1,830
Graduate 50 w/ $350 Plus Dollars
$1,300
$50
3.85%
$1,350
RA Semester 50 w/ $260 Plus Dollars
$1,210
$50
4.13%
$1,260
$200
$0
0.00%
$200
Add-On 25 Meals w/ $35 Plus Dollars (per
semester)
Residential College/Language House Meal Plans
(1,2,3,4)
Athletic Meal Plans (1,2,3,5)
Semester 100
Other (1,3,6)
Law School Meal Plan
34
Summer Session Meal Plan Rates (1)
Actual
Summer 2014
Amount of
Increase
Percent of
Increase
Proposed
Summer 2015
60 Meals w/ $120 Plus Dollars
$560
$15
2.68%
$575
40 Meals w/ $80 Plus Dollars
$380
$10
2.63%
$390
20 Meals w/ $40 Plus Dollars
$200
$0
0.00%
$200
(1) Plus Dollars are credited to a student’s identification card and may be used in the same
manner as cash at any board dining hall and/or retail operation.
(2) First-year students are required to purchase an All Access 7 or Ultimate Access meal plan.
(3) Add-On 25 Meals is available to all Semester meal plan holders and may be purchased any time
during the academic year.
(4) Some residential colleges and language houses have a dining requirement as part of their
program.
(5) Athletic Semester 100 Meal Plan is available only to Student Managers.
(6) Law School students are allowed to deposit a minimum $200 per academic year into a dining
spending account.
The University of Virginia’s College at Wise
Actual
2014-15
Amount of
Increase
Percent of
Increase
Proposed
2015-16
225 Block Plan w/$100 Dining Dollars
$4,322
$0
0.00%
$4,322
175 Block Plan w/$100 Dining Dollars
$4,112
$0
0.00%
$4,112
150 Block Plan w/$350 Dining Dollars
$4,112
$0
0.00%
$4,112
80 Block Commuter Plan (per semester)
$562
$11
1.96%
$573
50 Block Commuter Plan (per semester)
$367
$7
1.91%
$374
25 Block Commuter Plan (per semester)
$189
$4
2.12%
$193
Mountain Lake Biological Station
Actual
Daily 2015
Amount of
Increase
Percent of
Increase
Proposed
Daily 2016
Adult
$28.50
$0.50
1.75%
$29.00
Children 13 & older
$28.50
$0.50
1.75%
$29.00
Children 3 to 12
$17.00
$0.00
0.0%
$17.00
$0.00
$0.00
0.0%
$0.00
Children 2 & under
35
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.E.1. Capital Project Approval: Revised
Cost of the Newcomb Road Chiller Plant
BACKGROUND: In April 2011, the Board of Visitors approved the
Newcomb Road Chiller Plant project as part of the University’s
Major Capital Projects Program. This project will replace
existing chillers and supporting systems serving Newcomb Hall,
Clemons Library, and Alderman Library. The construction of this
plant will optimize chiller operations, reduce energy usage, and
provide new chillers and associated auxiliaries to serve both
the current load and the anticipated growth in the precinct.
The schematic design, with an estimated budget of $11.64
million, was approved by the Board of Visitors in November 2013.
DISCUSSION: The original budget for the Newcomb Road Chiller
Plant project was based on two projects that had been recently
completed: the AFC Chiller Plant and the South Chiller Plant
Addition. Subsequently, the East Chiller Plant project was
completed; its scope and budget are more similar to the Newcomb
Road Chiller Plant project when normalized for size and
capacity. Increased equipment and building costs based on
current, competitive market pricing and advances in technology
have resulted in a revised budget of $14.8 million, a $3.16
million increase over the original budget approved by the Board
which will be funded by cash. The new energy-saving
technologies that will be included in the project will provide
greater operational reliability and reduce future operational
and utility costs. The University has implemented similar
technologies in existing chiller plants that have reduced
electricity costs by nearly 20%, or more than $1 million
annually.
The Board of Visitors must approve all cost increases
greater than 10%. Therefore, the administration is seeking
approval of the revised budget of $14.8 million for the Newcomb
Road Chiller Plant project.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
36
PROJECT BUDGET REVIEW - NEWCOMB ROAD CHILLER PLANT
WHEREAS, the University proposes increasing the budget of
the Newcomb Road Chiller Plant project to respond to market
pricing and to improve the reliability and energy efficiency of
the plant;
RESOLVED, the Board of Visitors approves the revised budget
of $14.8 million for the Newcomb Road Chiller Plant project.
37
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.E.2. Capital Project Approval: University
Hospital Emergency Department/Interventional
Program/Bed Tower Expansion
BACKGROUND: The Board of Visitors approves major capital
projects every two years with the update of the Major Capital
Projects Program. This plan was last approved in April 2013 and
included the renovation and expansion of the Emergency
Department/Interventional Program/Bed Tower project. At that
time, however, the full scope of the project had not been
defined and consequently the financial plan was not available.
Based on the current design, the financial plan has been
developed and is being brought to the Finance Committee for
approval.
DISCUSSION: The University recommends the following revision to
the multi-year capital program:
University Hospital Emergency Department/Interventional
Program/Bed Tower Expansion
Debt
$322 - $394 million
In keeping with the recently approved strategic plan for
the Health System to expand University Hospital to the east, the
Medical Center recommends proceeding with expansion and
renovation of the Emergency Department, expansion of
perioperative and interventional services, and construction of a
six-story tower that includes the build out of three stories and
core and shell for the remaining three stories. This would
enable the Emergency Department (ED) to meet annual growth
projections for the foreseeable future, to meet the expectations
of our patients for privacy and a better patient experience, and
eliminate boarding of patients in the ED. In addition, it would
allow the Interventional program to address high utilization of
current space, accommodate future demand and growth, consolidate
many of our interventional services to one floor allowing for
more multidisciplinary work, and to right size pre-operative and
recovery areas to allow more space for patients and create
greater operational efficiencies. The addition of the six-story
38
bed tower with three floors fitted out would allow the Medical
Center to convert the majority of its semi-private rooms to a
single patient room model. This action combined with a strategy
to shift acuity to the tertiary/quaternary end of the spectrum
would allow the Medical Center to mitigate Medicaid expansion
risk.
The project is expected to cost between $322 million and
$394 million to be funded by debt.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
FINANCIAL PLAN FOR THE UNIVERSITY HOSPITAL EMERGENCY DEPARTMENT/
INTERVENTIONAL PROGRAM/BED TOWER EXPANSION
WHEREAS, the Board of Visitors approved a capital project
in April 2013 to expand the Emergency Department, construct an
interventional floor, and evaluate the feasibility of
constructing a new bed tower; and
WHEREAS, after further study the University proposes the
renovation and expansion of the Emergency Department, expansion
of perioperative and interventional services, and construction
of a six-story bed tower, three floors of which will be fitted
out;
RESOLVED, the Board of Visitors approves the University
Hospital Emergency Department/Interventional Program/Bed Tower
Expansion estimated between $322 million and $394 million.
39
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.E.3. Capital Project Approval: Dominion
Virginia Power Electrical Grid Reliability
Project
BACKGROUND: The Board of Visitors approves major capital
projects every two years with the update of the Major Capital
Projects Program. This plan was last approved in April 2013.
When the University identifies new projects outside the biennial
update cycle, approval by the Finance and Buildings and Grounds
Committees is required. The Finance Committee will review the
financial plans and the Buildings and Grounds Committee will
review the proposed projects for inclusion in the University’s
Major Capital Projects Program.
DISCUSSION: The University recommends the following revision to
the multi-year capital program.
Electrical Grid Reliability
Debt
$10.0-15.0 million
On average, the University experiences 30 power
interruptions each year, as well as periodic sustained outages
due to tree, animal, and weather-related problems involving
overhead power lines managed by Dominion Virginia Power (DVP).
These power interruptions and outages cause significant
disruptions to research, teaching, patient care, and general
facilities operations. A joint effort with DVP, this project
will include the installation of an underground electrical
ductbank to interconnect the DVP transmission substation
(Sherwood) with the University’s distribution substations
(Cavalier and Alderman). Eliminating the overhead power lines
and installing a new underground electric ductbank is expected
to eliminate most, if not all, of the power disruptions.
The project will include between three-and-a-half and four
miles of underground ductbank designed and installed by the
University to house DVP-installed conductors. The University
will own and maintain the ductbank and will provide DVP with an
operating license to maintain cabling. DVP’s share of the
40
project also includes a University dedicated transformer at the
Sherwood transmission substation.
Exhibit 1 shows the location of the three substations that
will be interconnected through this project. The route of the
ductbank, which is still under consideration, will be planned to
minimize both cost and impact and to maximize the use of
University property. The route will cross the Norfolk Southern
railway, involve Virginia Department of Transportation and City
of Charlottesville streets, and entail an excavation large
enough to house a two feet by three feet wide concrete encased
bank of PVC ducts (ductbank) at a minimum depth of 30 inches.
The estimated cost range of $5 million reflects current
uncertainties, including the route of the ductbank, right-of-way
needs, potential conflicts with existing infrastructure,
presence of rock, and environmental impacts. The partnership
provides that the University will fund the underground ductbank,
which is considered an improvement over typical overhead line
service provided by DVP. DVP’s investment in the feeders and
necessary substation improvements is estimated to be
approximately $4 million.
EXHIBIT 1
41
ACTION REQUIRED: Approval by the Finance Committee, the
Buildings and Grounds Committee, and by the Board of Visitors
REVISION TO THE UNIVERSITY’S MAJOR CAPITAL PROJECTS PROGRAM DOMINION VIRGINIA POWER ELECTRICAL GRID RELIABILITY PROJECT
WHEREAS, the University proposes the addition of the
Dominion Virginia Power Electrical Grid Reliability Project to
the Major Capital Projects Program;
RESOLVED, the Board of Visitors approves the addition of
the Dominion Virginia Power Electrical Grid Reliability Project,
estimated between $10.0 million and $15.0 million, to the
University’s Major Capital Projects Program.
42
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.F. Medical Center Quasi-Endowment –
Extension of Delegated Authority
BACKGROUND: On February 7, 2008, the Board of Visitors
authorized the creation of a Medical Center Quasi-Endowment at
$87 million to fund costs of future acquisition or construction
of capital assets. The original deposits occurred with the
transfer of cash from the Commonwealth of Virginia’s Treasury to
the University, following Restructuring. At the time, the Board
also authorized the then Vice President and Chief Financial
Officer to deposit subsequent amounts in excess of the $2
million delegated authority, up to an additional $300 million
over the following three years.
DISCUSSION: The University of Virginia Medical Center wishes to
continue to reinvest annual endowment distributions. Given that
this distribution exceeds the current $2 million delegated
authority, the Board of Visitors is asked to consider
authorizing the Executive Vice President and Chief Operating
Officer to approve such reinvestments to the Medical Center
Quasi-Endowment.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
AUTHORITY TO DELEGATE INVESTMENTS IN MEDICAL CENTER QUASIENDOWMENT
WHEREAS, the University of Virginia Medical Center has
established a quasi-endowment for future acquisition or
construction of capital assets and wishes to reinvest semiannual distributions in said quasi-endowment; and
WHEREAS, the semi-annual distribution is in excess of the
existing $2 million delegated authority;
RESOLVED, the Board of Visitors authorizes the Executive
Vice President and Chief Operating Officer to approve the
reinvestment of future endowment distributions into the Medical
43
Center Quasi-Endowment for future acquisition or construction of
capital investments.
44
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
I.G. Endowment Spending Rate Reset
BACKGROUND: At its June 2008 meeting, the Board of Visitors
passed a resolution to update its spending policy for the
University’s endowment. This change to the policy, which became
effective July 1, 2008, calls for an inflation increase in the
annual distribution from the endowment, unless such increase
causes the distribution to fall outside a range defined as 4.0%
on the low end and 6.0% on the high end of the market value of
the Pooled Endowment Fund.
Applying the formula for fiscal year 2015-16 will result in
a payout equivalent to 4.22% of the June 30, 2014 market value,
which is near the bottom of the 4.0%-6.0% band established by
the spending policy.
DISCUSSION: This past summer and fall, the administration
prepared and presented to the Board of Visitor’s Finance
Subcommittee a financial sensitivity analysis regarding the
endowment distribution. Given the current payout, the recent
results achieved by the University of Virginia Investment
Management Company (one-, three-, and five-year returns have
been 19.0%, 12.4%, and 15.2%, respectively), and projected
future returns, we recommend that the 2015-16 payout be
increased by an additional 40 basis points. The additional
return will support a long-term sustainable financial plan that
enables schools to invest the additional funds generated in core
operations. This action will raise the fiscal year 2015-16
spending distribution to 4.62%, still well within the 4.0%-6.0%
band.
ACTION REQUIRED: Approval by the Finance Committee and by the
Board of Visitors
RESET OF ENDOWMENT SPENDING RATE
WHEREAS, the University wishes to provide reliable and
predictable distributions to support programs; and
45
WHEREAS, the University’s current endowment spending
policy, approved by the Board of Visitors in June 2008, calls
for an inflation increase in the annual distribution from the
endowment, unless such increase causes the distribution to fall
outside a range defined as 4.0% on the low end and 6.0% on the
high end of the market value of the Pooled Endowment Fund; and
WHEREAS, the Finance Subcommittee has been working to
develop a long-term financial plan that supports University
priorities; and
WHEREAS, applying the spending policy with the usual
inflator would result in an annual payout for fiscal year 201516 of 4.22% of the market value of the UVIMCO Pooled Endowment
Fund at June 30, 2014;
RESOLVED that for fiscal year 2015-2016, the endowment
spending rate for all shares shall be adjusted by 40 basis
points to 4.62% of the market value of the UVIMCO Pooled
Endowment Fund at June 30, 2014.
46
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.A. Endowment Report: Market Value and
Performance as of December 31, 2014
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 December 31, 2014, report follows:
Quarter-End December 2014
SUMMARY: The following commentary provides an overview of the
current market environment and the asset allocation, performance
(unaudited) and liquidity position of the Long Term Pool as of
and for periods ending December 31, 2014. We also summarize our
risk management strategy for the Long Term Pool, which remains
focused on market, manager, and liquidity risk.
47
The Long Term Pool generated a return of 10.7% in 2014,
outperforming by 380 basis points the 6.9% return earned by our
long-term policy portfolio of 60% global public equity, 10%
global public real estate, and 30% global investment grade fixed
income. The market exposure of the Pool trended slightly down
during 2014 but remained consistent with the risk of the policy
portfolio. Private investments were cash flow positive in 2014,
as distributions of $598 million from private equity, real
estate, resources and credit dwarfed capital calls of $385
million.
While the following commentary provides color on the market
environment and Pool performance in 2014, we prefer to focus on
long-term and not short-term results. For the 20-year period
ending December 31, 2014, the Long Term Pool returned 12.5%
versus the policy portfolio return of 7.6%.
MARKET ENVIRONMENT
Reflections on 2014
2014 marked the sixth year of recovery since the global
financial crisis in 2008, and global equities represented by the
MSCI All Country World Index (MSCI ACWI) rose 4.7% during the
year. The MSCI ACWI has now rallied 183% cumulatively from the
bottom of the market in March 2009 through the end of 2014.
However, signs of market uncertainty began to emerge in the
second half of 2014. Slowing global growth, collapsing
commodity prices and the depreciation of most major currencies
against the U.S. dollar resulted in a decline of 1.7% in the
MSCI ACWI over the last six months of the calendar year.
In 2014, the U.S. market was once again a standout
performer. The S&P 500 Index gained 13.7%, bolstered by
continued accommodative monetary policy and improving economic
growth. The 5.0% U.S. GDP growth registered in the third
quarter of 2014 was the highest rate in eleven years, but
economic news and equity market returns outside the U.S. were
less inspiring. Eurozone GDP growth fell to 0.1% in the third
quarter, while Japan dipped into recession following an increase
in the consumption tax in April. In the face of economic
weakness, the Bank of Japan announced an expansion of
quantitative easing in October, and there are strong signs that
the European Central Bank will follow suit in 2015. The
expectation of easy monetary policy outside the United States
48
contributed to double digit declines in both the euro and the
yen against the U.S. dollar, turning positive equity market
gains on a local currency basis into declines for the year on a
U.S. dollar basis for both geographies. The story was similar
in emerging markets, as the 1.8% decline in the MSCI Emerging
Markets Index in 2014 was largely driven by depreciating
currencies. Big gains in Chinese and Indian markets were offset
by declines in Brazil and Russia. The Russian market declined
by 46% during the year, as a result of the situation in the
Ukraine and the anticipated negative impact of collapsing oil
prices on the economy.
In what was one of the most unexpected outcomes of 2014,
Treasury bond yields in the U.S. moved sharply lower during the
year, resulting in positive returns for bond indices. After
rising to above 3.0% by the end of 2013, most pundits expected
the 10-year Treasury yield to continue to move higher in 2014 as
quantitative easing slowed and the Federal Reserve ultimately
began a cycle of rate increases. While the Fed did end its bond
buying stimulus program, new Fed chief Janet Yellen maintained
that it would be a “considerable time” before interest rates
rise. As a result, the 10-year Treasury yield fell more than 80
basis points through the year to 2.17%. The 30-year Treasury
yield declined even further as the yield curve flattened,
falling by 120 basis points to 2.75%. Driven by this decline in
rates, long-duration assets exhibited significant price
appreciation, with the 30-year Treasury returning 29% for the
year, and the MSCI U.S. Real Estate Index gaining 28.1% for the
year. Meanwhile, the shorter duration benchmark Barclays U.S.
Aggregate Bond Index returned 6.0% for the year. In the
developed markets outside the United States, bond yields also
fell in 2014. The Japanese 10-year bond closed the year at
0.33%, the German 10-year bund yield fell to 0.54%, and both
Spanish and Italian yields closed 2014 below 2.0%, all setting
new record lows.
Commodity markets also produced a surprise in 2014, with
the price of crude oil falling more than 40% for the year.
After peaking in June at more than $100/barrel, WTI crude oil
prices dropped precipitously throughout the second half of the
year, ending 2014 at just over $50/barrel. The decision by OPEC
over Thanksgiving to maintain oil production rather than to cut
in the face of lower prices rattled markets, sending prices down
$7/barrel in one day. We are at the beginning stages of seeing
how these declines in commodity prices will ripple through
domestic and international economies.
49
Positioning for 2015
As always, it is impossible to predict how markets will
behave in 2015. The U.S. economy is entering the year with a
tailwind, and central banks appear prepared to continue and even
accelerate quantitative easing measures. Equity market
valuations seem reasonable on current earnings, and global
earnings yields remain well above global bond yields.
Conversely, weaker economic growth outside the U.S. and the
abundance of potential geopolitical risks could easily stall the
recovery.
Regardless of the direction of markets, it seems likely
that market volatility will increase going forward. So far, in
the first three weeks of 2015, the U.S. 10-year Treasury yield
has fallen as low as 1.71%, the WTI oil price has fallen to $45
per barrel, the Swiss National Bank (SNB) has removed its three
year policy of capping the franc versus the euro, and the
European Central Bank has announced plans for a new bond buying
program. The decision by the SNB was particularly unexpected,
resulting in 41% appreciation of the Swiss franc versus the euro
in one day and large losses for many investors.
The ramifications of the sharp decline in oil are also
unclear. While consumers and importing countries will clearly
benefit from lower prices, the move appears to be devastating to
what are already relatively unstable parts of the world,
including Russia and parts of the Middle East. Energy-related
regions and companies in the U.S. are also likely to suffer
meaningfully if current oil prices hold, as much of the shale
oil driving U.S. production growth is uneconomic at these
prices. In addition, the wave of high yield debt issued by
energy companies in recent years may cause disruptions in the
credit markets, as the energy sector accounts for approximately
17% of the U.S. high yield debt market.
The multi-year equity rally has greatly benefitted the Long
Term Pool, but is likely to lead to lower-than-normal future
equity returns. We cannot predict the path of equity markets,
but we are prepared for volatility to return to markets. We
anticipate that compelling investment ideas will be born from
this volatility, and we plan to capitalize on these
opportunities and using our long-term investment horizon to our
advantage. We remain focused on the long term and generating
returns that are at least sufficient to support the future
spending needs of the University. While this is no easy task,
50
we believe that we can best achieve this goal by continuing to
partner with exceptional external managers and by taking a
prudent approach to risk management at the portfolio level.
ASSET ALLOCATION: UVIMCO’s policy portfolio 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 deflation hedge from
fixed income.
The Long Term Pool’s actual allocation as of December 31,
2014 is 65.4% to equity managers, 11.3% to real asset managers,
and 23.3% to fixed income (including marketable alternatives,
credit, and cash). Looking through to our managers’ underlying
investments, the Long Term Pool has a 52.4% allocation to
equities, 13.4% allocation to real assets, and 34.2% allocation
to credit, fixed income, and cash as of December 31, 2014. The
market risk of the Long Term Pool continues to be consistent
with the risk of the policy portfolio benchmark.
PERFORMANCE: The Long Term Pool generated a return of 10.7% in
2014, 380 basis points more than the policy benchmark return of
6.9%. Our private equity, public equity, real estate, and
resources portfolios all recorded double digit gains during the
year, while long/short equity and marketable alternatives &
credit earned respectable returns of 4.4% and 5.2%,
respectively. The 12.4% of the Long Term Pool held in cash and
bonds continues to be a drag on performance, but it helps
maintain the appropriate level of risk in the Pool and provides
critical liquidity for shareholder distributions, capital calls
and new investments.
The following commentary provides color on performance
versus benchmarks, recognizing the short-term tracking error
inherent in UVIMCO’s investments versus the passive policy
portfolio. As stated many times in our prior reports, we prefer
to evaluate the performance of the Long Term Pool over longerterm time horizons as the managers with whom we invest employ
long-term investment strategies. The Pool returned 10.0% over
the last 10 years, outpacing the policy benchmark by 350 basis
points annually. Over the last 20 years, the Pool delivered an
annualized return of 12.5%, beating the policy benchmark by 490
basis points per year.
51
EQUITIES
Public Equity
The public equity portfolio gained 10.8% in the twelve
months ending December 31, 2014 compared to 4.7% for the MSCI
ACWI. The U.S. market was the standout performer, with the S&P
500 Index gaining 13.7% in 2014. Emerging markets lagged in
2014, with the MSCI Emerging Markets Index posting a 1.8%
decline on a U.S. dollar basis as gains in China and India were
offset by declines in Brazil and Russia. Given UVIMCO’s
outsized positioning to emerging markets, we are quite pleased
with the returns generated by our public equity portfolio in
2014. Performance was aided by the Initial Public Offering
(IPO) and subsequent appreciation of JD.com, China’s leading
online fulfillment-based retailer and the second largest Chinese
business-to-consumer e-commerce company. More broadly, we
benefited from outstanding stock selection by our managers. Of
the thirteen active funds in the public equity portfolio for the
full year, ten outpaced their relevant indices in 2014, and all
outperformed their appropriate benchmarks over three and five
years.
Long-term results for the public equity portfolio remain
outstanding. Over the past ten years, our public equity
portfolio has appreciated 12.5% annually versus 6.6% annually
for the MSCI ACWI. During this period, we have benefited from
portfolio tilts to emerging markets and higher quality consumer
companies. Most importantly, though, we have benefited from
manager selection and our partnership with exceptional external
managers. Our managers are quite different from each other with
regard to their geographic location and investment universe.
However, they tend to share a number of common characteristics:
a commitment to rigorous fundamental research, a willingness to
concentrate their portfolios in only their best ideas, a longterm focus, and a partnership mentality. While we do not expect
the level of returns generated by our public equity portfolio to
be repeated in the future, we believe that continuing to partner
with these types of managers will provide UVIMCO with the best
opportunity to generate excess future returns.
UVIMCO's public equity weighting declined in 2014 from
25.8% at the beginning of the year to 22.7% by year-end. One of
our long-standing global public equity managers retired, and we
effected partial redemptions from several others. We will
continue to look for rebalancing opportunities within the public
52
equity portfolio, particularly in cases where we believe the
future return potential has become less appealing than other
opportunities. We also funded two new public equity managers in
2014, and will continue to seek attractive investment partners
in the space.
Long/Short Equity
The long/short equity portfolio gained 4.4% in the twelve
months ending December 31, 2014, compared to the 4.7% gain in
the MSCI ACWI and a gain of 5.5% for the Dow Jones Credit Suisse
Long/Short Equity Index (DJCS Long/Short Index). Long/short
results were underwhelming during the first half of the year, as
the shorting environment generally remained difficult and
markets continued to move higher. However, as some level of
uncertainty and volatility returned to global markets in the
second half of calendar 2014, our long/short portfolio performed
well. During the second half of 2014, our long/short portfolio
rose 2.4% while the MSCI ACWI declined 1.7%. We expect our
managers to capitalize on an increased opportunity set of both
long and short ideas, and to perform well if volatility in
global equity markets continues to rise.
Over longer time periods, the long/short portfolio has
performed well. On a five and ten-year basis, our portfolio has
generated annualized gains of 9.9% and 9.2%, respectively,
comfortably ahead of the annualized gain of 6.4% for the DJCS
Long/Short Index over both periods. Five and ten-year returns
for MSCI ACWI were 9.7% and 6.6%, respectively. We are pleased
that our long/short portfolio has outpaced the fully invested
global index over the long term, but this is not our
expectation. In periods such as the last five years when
markets have recovered strongly and volatility has generally
declined, it is difficult for our long/short managers, with net
exposure to the market of roughly 50%, to keep pace with global
markets.
Long/short equity plays more than one role in the Long Term
Pool. We ask our long/short equity managers to generate
attractive risk-adjusted returns through unconstrained stock
selection. We also expect the portfolio to act as a source of
downside protection in market drawdowns due to lower market
exposure and the ability to make money via shorting. Looking
back, the long/short portfolio has successfully filled both of
these objectives. We believe manager selection has been the
biggest determinant of success for the program historically, as
53
UVIMCO has cultivated strong relationships with exceptional
managers in the space for well over a decade. Our managers rely
on in-depth fundamental research to drive security selection on
both the long and the short side, invest with a longer-term
perspective, and look to generate positive returns from both
long and short investments. At 23.7% of the Long Term Pool, we
anticipate that long/short equity will continue to play
important roles in the endowment in the years ahead.
Private Equity
UVIMCO’s private equity portfolio returned 28.5% during
2014, outpacing the 4.7% return of the MSCI ACWI by a
considerable margin. Within the private equity composite,
buyout investments returned 12.9%, growth equity gained 51.2%,
and our venture capital portfolio appreciated by 43.6%. Over
the ten years ended December 2014, the overall private equity
portfolio has generated an annualized return of 12.9% versus
6.6% per year generated by the MSCI ACWI.
2014 was the busiest year for venture-backed IPOs since
2010, with companies raising $249 billion in public offerings
according to Pitchbook. Information from Pitchbook indicates
that $88 billion was returned to limited partners from venture
funds during the year, which is a sizable increase from the
total distributions of $50.2 billion in 2013. Much like the
past several years, a small number of IPOs dominated the news in
2014. JD.com raised $2 billion in proceeds, while Alibaba,
China’s version of eBay and Amazon, raised $25 billion in its
blockbuster September IPO. Also noteworthy is Uber, a private
company that is challenging the established taxi cab business
model, which raised an additional $1.8 billion in private
funding in December. Other notable IPOs in December 2014 were
Lending Club, Hortonworks, and New Relic, all of which
appreciated considerably after their first day of trading.
Venture capitalists and investors expect more of the same
in 2015, but this will occur only if the domestic economy
continues its solid recovery trajectory and interest rates
remain low. The decline in oil prices during the second half of
2014 is a two-edged sword that puts more money in the pockets of
consumers but may have a dampening effect on certain sectors of
the economy. Also, we note that the headline-grabbing IPO
activity of the last two years has many investors thinking back
to 1999-2000 and the dotcom bubble. However, as noted in
previous commentaries, companies going public today or in the
54
near future typically have good business models, solid balance
sheets and are more seasoned than companies going public ten or
more years ago. As of September 30, there were over 700
registration statements on file with the SEC, which reflects the
optimistic outlook for future public offerings.
On the M&A front, there was $3.5 billion in global mergers
and acquisitions activity as reported by Thomson Reuters. This
represents an increase of 47% over 2013. The total number of
transactions showed an increase of just 6.0% for the year, but
M&A activity as a whole was dominated by 95 deals each valued at
$5 billion or more. The largest M&A transactions in 2014 were
the purchase of WhatsApp by Facebook for $19.5 billion and the
purchase of Nest by Google for $3.2 billion.
The end result of the buoyant IPO and M&A markets for our
private equity portfolio was the continued distribution of cash
and/or shares of portfolio companies from our managers,
particularly in the venture capital portfolio. Distributions
continued at a healthy pace with $278 million received for the
year versus $199 million in capital calls, providing a net cash
flow of $79 million to the Long Term Pool. In 2014, UVIMCO
committed approximately $245 million to private equity,
including buyout, growth equity, and venture capital managers.
As a whole, private equity represented 19.1% of the Long Term
Pool as of December 31, 2014.
REAL ASSETS
Real Estate
The real estate portfolio returned 12.4% in 2014 versus the
20.6% return achieved by the real estate component of our policy
portfolio benchmark, an equally weighted index of publicly
traded U.S. and international real estate securities. UVIMCO’s
real estate portfolio has low international exposure and no
exposure to the public REIT market, which can result in a large
degree of tracking error versus its benchmark.
As we have reported in prior commentaries, the longer-term
performance of UVIMCO’s real estate portfolio has been poor on
both an absolute and relative basis. Over five and ten-year
periods, our real estate portfolio has returned 3.1% and -3.0%,
respectively, and underperformed the benchmark by 1,050 basis
points and 980 basis points, respectively. During 2014 we
55
completed a review of our real estate portfolio and began to
implement a new strategy. Going forward, we will: (i) seek
exposure to publicly traded real estate securities while being
mindful of entry point valuations, and (ii) invest with private
equity real estate managers that have broad enough opportunity
sets and sufficient skills to generate returns comparable to
other private investments.
Domestic REITs performed very well in 2014, returning 28.1%
as represented by the MSCI U.S. Real Estate Index. As has been
widely publicized, REITs have benefited from yield-thirsty
investor demand and raised approximately $68 billion of capital
in 2014, a slight decrease to the record set last year. Over
half of this amount was debt capital raised at attractively low
interest rates that REITs may use to finance facility upgrades
and accretive acquisitions. Although capital markets were
broadly accommodative in 2014, relatively constrained financing
for new development projects kept supply in check across most
sectors and geographies. Tight supply coupled with solid
employment and income trends resulted in a very favorable
environment for real estate owners to raise rents and drive net
operating income.
Green Street Advisors’ Commercial Property Index increased
10.1% in 2014 and now stands at an all-time high. Per data from
GreenStreet Advisors, domestic REITs were fairly valued at the
end of 2014 as they ended the year trading at an approximate
5.0% premium to their NAV, comparable to the long-term average
premium of 4.0%. Equity REITs also appear fairly valued on a
dividend yield spread basis. At the end of 2014, equity REITs
were trading right in line with their long-term average dividend
yield spread to the 10-year U.S. Treasury. As Treasuries
rallied in 2014, this means that equity REIT dividend yields
reached a historic low of approximately 3.6% by the end of the
year.
In 2014, cash distributions for real estate have totaled
$143 million, a meaningful increase from 2013 as a result of the
portfolio’s continued recovery. Capital calls were $52 million,
resulting in net cash inflows of $91 million for the year. We
committed $56 million to a handful of real estate funds and coinvestment opportunities during the year. As of December 31,
2014, real estate represented 6.8% of the Long Term Pool.
56
Resources
The resources portfolio generated a 19.9% return in 2014
versus a gain of 20.6% earned by the formal real assets
benchmark, a blended MSCI Real Estate Index. Driven largely by
price declines in oil and natural gas, the Goldman Sachs
Commodity Index declined 33.1% in 2014 while the S&P North
American Natural Resources Equity Index fell by 9.8%. The
prices of Brent and WTI crude oil declined 50% and 46%,
respectively, in 2014. The SPDR S&P Oil and Gas Exploration and
Production ETF, which is comprised solely of exploration and
production companies as opposed to the broader based energy
companies in the S&P North American Natural Resources Equity
Index, lost 29.4% during the year. Due to a lag in reporting by
our managers, the December 2014 valuation of a meaningful
portion of our resources portfolio does not reflect the full
extent of the recent price declines in oil and natural gas.
Irrespective of reporting lags, the valuation of private assets
in general tends to lag comparable public equities, thus we do
not expect to see the full impact of commodity price declines
until 2015.
Most attribute the initial decline in oil prices to a
combination of weakening demand in Europe and China coupled with
record increases in U.S. shale oil production (expected 1.2
MMbpd or 16% growth). The initial decline was then exacerbated
by OPEC’s decision not to cut production and maintain price
stability, which was contrary to many prior OPEC decisions. A
strong U.S. dollar has led to further concern over emerging
market demand for oil, which has been a key source of
incremental demand growth over the last decade. The continued
fall in oil prices has also stoked fears of global deflation,
which reinforces the downward pricing momentum. Brent crude
ended the year at $55 and traded down to the high $40’s in the
first few weeks of 2015.
After trading above $4 for most of the year, the price of
Henry Hub natural gas declined 27% in 2014 and settled at $3.14
by year end. Most of this decline occurred in December as
expectations for a mild winter in key demand regions continued
to persist. At the same time, strong year over year production
growth corrected a projected storage deficit that persisted for
most of 2014. Total U.S. dry gas production is projected to be
70.1 Bcf/d in 2014, eclipsing 2013’s record production by 6%.
57
The majority of our resources portfolio is invested in
private equity funds that focus on the upstream segment of the
oil and gas industry. In response to the precipitous oil and
gas price declines, these managers are assessing the economics
of their positions on a basin-by-basin basis. We expect that
many of our managers will dramatically reduce their short-term
growth plans and only drill strategically to hold leases on
their very best acreage. Also, our managers are actively
putting pressure on service providers to reduce costs. While
our managers are highly skilled at driving value in oil and gas
investments, the duration of current low prices will be a
significant driver of returns in the short term.
The resources portfolio continued to be cash flow
generative in 2014 with $116 million in distributions versus $93
million in capital calls, providing net cash inflows of $23
million. We committed $80 million to resources funds in 2014,
keeping the Long Term Pool’s allocation to resources at 4.5%,
similar to year-end 2013’s level.
FIXED INCOME AND MARKETABLE ALTERNATIVES
Marketable Alternatives & Credit
The marketable alternatives & credit portfolio generated a
return of 5.2% in 2014, versus 6.8% returned by the Barclays
Aggregate Bond Index and 2.5% returned by the Barclays High
Yield Index. UVIMCO’s marketable alternatives & credit
portfolio consists of a diverse group of managers who have a
wide variety of expertise in areas such as bankruptcy claims,
distressed debt, derivatives, structured products, direct
lending, real estate lending, and post-reorganization equities.
In addition, several of these managers have flexible mandates
that enable them to move within the equity and credit spaces
based on the current opportunity set. Our managers focus on
earning strong risk-adjusted returns, and they typically exhibit
less sensitivity to equity market swings compared to our public
equity and long/short equity portfolios.
The 2.5% return generated by the Barclays U.S. High Yield
Index in 2014 was impacted by weakness in the energy sector,
which accounts for roughly 17% of the index. Many of our more
opportunistic credit managers are actively assessing the energy
sector and preparing to take advantage of any meaningful
dislocation should commodity prices remain low for an extended
58
period. On the whole, interest rates remain extremely low
relative to historical averages and credits spreads remain
relatively tight, especially in high-quality names. As a
result, many of our credit and marketable alternatives managers
with flexible mandates continue to find better opportunities in
the equity markets, and are holding high levels of cash in
anticipation of an improved return environment in credit
markets.
As of December 31, 2014, marketable alternatives & credit
funds represented 10.7% of the Long Term Pool. For the full
year, our credit managers who employ drawdown fund structures
called $40 million of capital and distributed $59 million,
resulting in net inflows of $19 million.
Bonds and Cash
The bond and cash portfolios are managed as sources of
liquidity and risk control for the Long Term Pool. As of
December 31, 2014, liquid U.S. Treasury bonds and cash made up
12.4% of the Long Term Pool, an increase of 270 basis points
from the end of 2013. The biggest driver of this increase has
been a decline in our exposure to public equity. Our target
range for the sum of the U.S. Treasury bonds and cash is between
8.0% and 12.0% of the Long Term Pool. We expect this portion of
the endowment to provide insurance against future turbulent
markets, and to allow us to fund attractive investments in the
future that will more than make up for the return drag.
The government bond portfolio is comprised of short-term
U.S. Treasury notes and bonds with maturities under three years.
The average duration of this portfolio as of December 31, 2014
was 1.34 years. We have continued to maintain our position in
shorter duration bonds, as we feel that the small additional
return earned from investing in longer duration bonds does not
compensate us for the risk of higher rates. For the year ended
December 31, 2014, the bond portfolio returned 0.3%, compared to
the Barclays U.S. Treasury benchmark return of 5.1%.
Our primary objective for the cash portfolio is principal
preservation. The cash portfolio is invested in U.S. Treasury
bills and notes with maturities less than one year. The
duration of the cash portfolio as of December 31, 2014 was 0.36
years. The negligible returns reported for the short-term cash
investments are consistent with an environment in which current
interest rates are near 0%.
59
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 by re-allocating capital across a broad set of
diversified managers. On a short-term basis, we monitor our
equity exposure and rebalance using 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
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 consistent with the estimated market
risk of the policy portfolio. Our current estimate of the
volatility of the Long Term Pool returns is 10.8% versus 11.4%
for the Policy Portfolio. In addition, the one-percentile tail
annual drawdown on the Long Term Pool is estimated to be -25.1%,
less than the drawdown estimate of -27.2% 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
60
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. UVIMCO mitigates
manager risk by diversification and employing extensive and
ongoing due diligence to assess both the investment and
operational aspects of our external fund managers. Our
Investment Policy Statement ensures a minimum level of
diversification by limiting our exposure to any single manager
to 7.5% of the Long Term Pool. As of December 31, 2014, our
largest manager exposure was 4.1% of the Long Term Pool.
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 10% of the
Long Term Pool invested in assets that are safe and highly
liquid, at least 20% of the Pool available for conversion to
cash within one quarter, and at least 30% of the Pool available
for conversion to cash in any 12-month period. As of December
31, 2014, we had 12% of the Long Term Pool invested in
Treasuries, 29% of the Long Term Pool that could be turned to
cash within one quarter, and 46% of the Pool that could be
turned to cash within one year.
We also limit our unfunded commitments to private
investments to be no more than 25% of the Long Term Pool, with
the goal of maintaining unfunded commitment levels that average
15% of the Pool. As of December 31, 2014, unfunded commitments
were 14% of the Long Term Pool.
61
INVES TMENT MANAGEMENT COMPANY
Investment Report
December 31, 2014
Investment Activity
Beginning Net Asset Value (NAV)
Beginning Shares
Month
FYTD 2015 (1)
$7,036,899,958.92
853,411.52
$6,949,542,818.84
854,659.59
$8,245.61
$41,484,932.67
($6,131,823.51)
($33,831,144.78)
($1,172,816.66)
$0.00
NAV Per Share at Beginning of Period
+ Contributions
– Redemptions
+ Investment Return
– Fees
+ Fee Rebates
Ending Net Asset Value (NAV)
Ending Shares
NAV Per Share at End of Period
$8,131.36
$109,783,467.68
($79,900,835.29)
$63,779,507.34
($11,955,851.92)
$6,000,000.00
$7,037,249,106.64
857,576.82
$8,205.97
$7,037,249,106.64
857,576.82
$8,205.97
Long Term Pool
% of NAV
Shareholder Summary
$4,105,893,299.03
$1,581,570,187.48
$1,349,785,620.13
$7,037,249,106.64
University of Virginia Endowment
Affiliated Organizations
University Operating Funds
Total
58.3%
22.5%
19.2%
100.0%
Performance
Market Value (2)
$ Millions %
Long Term Pool
Policy Benchmark
Equity
Public
Long / Short
Private
Time-Weighted Returns
MO
FYTD
CYTD
3 YR
Annualized
5 YR 10 YR
100.0
(0.5)
0.9
10.7
14.0
12.9
10.0
12.5
100.0
(1.1)
0.5
6.9
11.4
8.8
6.5
7.6
1,598
1,667
1,341
22.7
23.7
19.1
(0.9)
(0.4)
(0.8)
0.5
2.4
3.0
10.8
4.4
28.5
20.7
13.3
20.1
16.8
9.9
20.4
12.5
9.2
12.9
12.7
10.6
21.2
4,605
65.4
60.0
(0.7)
(1.9)
1.9
(1.7)
13.1
4.7
17.7
14.7
15.2
9.7
11.7
6.6
14.8
7.4
481
317
6.8
4.5
0.4
(0.6)
2.5
(3.0)
12.4
19.9
12.8
12.0
3.1
25.3
(3.0)
17.7
798
11.3
0.0
0.3
15.2
12.4
16.3
8.2
11.3
10.0
(0.2)
6.9
20.6
14.9
13.6
6.8
9.1
756
675
198
10.7
9.6
2.8
(0.2)
(0.2)
(0.0)
(2.1)
0.1
0.0
5.2
0.3
0.0
10.0
0.2
(0.0)
9.1
1.1
0.0
6.7
4.1
--
7.8
6.6
--
1,629
23.3
(0.2)
(1.0)
2.7
4.7
5.1
5.4
7.1
30.0
0.3
2.7
6.8
3.5
4.5
4.7
6.2
0.1
0.0
(0.1)
(0.1)
--
--
--
--
7,037
(3)
Total Equity
MSCI All Country World Equity
Real Assets
Real Estate
Resources
Total Real Assets
(4)
MSCI Real Estate
Fixed Income, Cash & MAC
Marketable Alternatives & Credit
Government Bonds
Cash & Currency
Total Fixed Income, Cash & MAC
Barclays Aggregate Bond (5)
Portfolio Overlays
(6)
4
62
20 YR
3.4
--
Investment Report
December 31, 2014
Short-Term Liquidity(7)
Actual Liquidity (Cumulative Total % of NAV)
Weekly
Public Equity
Monthly
Quarterly
Semi-Annually
Annually
5%
7%
8%
12%
14%
Long / Short Equity
-
0%
8%
10%
14%
Marketable Alternatives & Credit
-
-
0%
1%
6%
10%
10%
10%
10%
10%
3%
3%
3%
3%
3%
Government Bonds
Cash
Total
18%
20%
29%
35%
46%
Available Liquidity ($ in Millions)
1,232
1,397
2,047
2,460
3,263
Private Funds Market Values and Commitments (8)
($ in Millions)
Market Value of Private Investments
Amount
Public Equity
Long / Short Equity
Private Equity
% of NAV
Uncalled Commitments
Amount
% of NAV
Private Aggregate
Amount
% of NAV
217
3%
15
0%
232
3%
12
0%
30
0%
42
1%
1,339
19%
409
6%
1,748
25%
Real Estate
481
7%
183
3%
664
9%
Resources
317
5%
206
3%
524
7%
Marketable Alternatives & Credit
239
3%
114
2%
353
5%
2,606
37%
957
14%
3,564
51%
Europe
Asia
LAMA(10)
Total
Market and Currency Exposure Estimates (9)
(% of NAV)
Equity
Policy Ranges
Actual
Exposure
North
America
40 - 70
52.4
25.9
7.4
16.5
2.6
Real Assets
5 - 20
13.4
10.6
2.5
0.1
0.2
Credit
0 - 20
3.6
2.6
0.5
0.1
0.4
Government Bonds
5 - 20
9.8
9.8
-
-
-
Total Market Exposure
70 - 100
79.2
48.8
10.4
16.7
3.3
--
--
25 - 75
0 - 40
0 - 40
0 - 20
(2.4)
(0.2)
0.5
8.0
0 - 30
16.5
0 - 30
3.8
0 - 20
Policy Ranges
Cash & Currency
Currency Exposure
Policy Ranges
0 - 30
20.8
22.9
---
100.0
--
71.7
50 - 100
63
Short Term Pool
December 31, 2014
Investment Activity
FYTD 2015 (1)
Month
NAV Per Share at Beginning of Period
+ Net Contributions / (Redemptions)
+ Investment Returns
– Expenses
$219,139,201.14
218,839.16
$1,001.37
$25,928,983.17
($19,498.52)
($1,963.40)
$266,823,936.10
266,498.60
$1,001.22
($21,787,058.43)
$21,166.66
($11,321.94)
Ending Net Asset Value (NAV)
Ending Shares
NAV Per Share at End of Period
$245,046,722.39
244,734.92
$1,001.27
$245,046,722.39
244,734.92
$1,001.27
Short Term Pool
% of NAV
$148,550,555.32
$16,460,724.29
$80,035,442.78
$245,046,722.39
60.6%
6.7%
32.7%
100.0%
Beginning Net Asset Value (NAV)
Beginning Shares
Plan Account Summary
Long Term Pool Cash
Affiliated Organizations
University Operating Funds
Total Short Term Pool
Performance
Time-Weighted Returns
MO
FYTD CYTD
Short Term Pool
Since Inception (Oct 2012)
Annualized Cumulative
Yield to
Maturity
(0.01)
0.01
0.03
0.06
0.13
0.07
0.00
0.01
0.03
0.07
0.15
0.04
3-Month Treasury Bills
Portfolio Composition
Maturity Distribution
70%
60%
U.S. Treasury
Bills
69.5%
50%
40%
36.7%
30.6%
28.6%
30%
20%
Overnight
Funds
30.5%
10%
0.0%
0.0%
0.0%
5-14
Days
15-29
Days
30-59
Days
4.1%
0%
0%
20%
40%
60%
80%
0-4
Days
100%
64
60-89
Days
90-179 180-364
Days
Days
Investment Report
December 31, 2014
Endnotes
(1)
UVIMCO's fiscal year runs from July 1 through June 30.
(2)
All investments are recorded at estimated fair market value in accordance with UVIMCO's valuation policy.
(3)
The Policy Benchmark is the geometrically linked monthly average of the underlying asset classes' benchmarks, weighted by
the Fiscal Year 2015 policy target allocations: 60% Equity, 10% Real Assets, 30% Fixed Income.
(4)
The Real Estate component of our Fiscal Year 2015 policy portfolio is comprised of 50% MSCI U.S. Real Estate Index and
50% MSCI All Country World Real Estate Index. Prior to January 1995, the benchmark is comprised of 100% FTSE National
Association of Real Estate Investment Trusts Equity Index.
(5)
The Fixed Income component of our Fiscal Year 2015 policy portfolio is comprised of 50% Barclays Capital U.S. Aggregate
Bond Index and 50% Barclays Capital Global Aggregate Bond Index (Hedged in U.S. Dollars). Prior to January 1990, the
benchmark is comprised of 100% Barclays Capital U.S. Aggregate Bond Index.
Represents the current market values and performance of overlay positions designed to change the Long Term Pool exposures.
Performance is calculated to reflect the impact of overlays relative to the entire Long Term Pool.
(6)
(7)
Represents securities and funds that may be readily sold for cash within the designated time periods.
(8)
Represents the market values of investments where distributions are at the sole discretion of the managers, plus all uncalled
commitments.
(9)
Market and currency exposures are estimated by looking through managers and funds to the underlying security positions.
Policy ranges express the expected variation in asset class, regional, and currency exposures during normal market
circumstances. Totals may not add due to rounding.
(10)
Latin America, Middle East, and Africa.
65
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.B. Interim Academic Division Financial
Report as of December 31, 2014
The unaudited financial report for the University’s
Academic Division for the six months ended December 31, 2014
follows and includes:
•
•
•
statement of net position compared to June 30, 2014;
statement of revenues, expenses, and changes in net
position compared to the period ended December 31, 2013;
and
cash-basis operating sources and uses, budget versus
actual results through December 31, 2014.
Statement of Net Position
This statement, on the following page, provides Academic
Division’s net positions as of December 31 and June 30, 2014.
The unaudited statement is developed based on Generally Accepted
Accounting Principles (GAAP).
The $280 million in current receivables are primarily
comprised of tuition and other student charges ($251.6 million),
sponsored research ($22.7 million), and auxiliary operations and
other receivables ($5.7 million). Past due receivables over 120
days are only $884,000, or 0.4% and well within the Commonwealth
of Virginia’s management standard of 10%.
Endowment and other long-term investments are essentially
unchanged due to nearly flat investment returns for the first
six months of the fiscal year. Further information on the
endowment’s performance this year is included in the written
report from UVIMCO beginning on page 47.
Student loan programs include $20.2 million through the
Federal Perkins Loan Program, $1 million through the Federal
Nursing Student Loan Program, and $20.3 million through loan
programs managed by the University using philanthropy given for
this purpose. The default rates by University students on the
66
federal loan programs are below required thresholds: 3.8% for
Perkins versus the federal requirement of 15% and 1.7% for
Nursing versus the 5% federal threshold. Collectively, the
default rate on University managed loan programs stands at 2.6%.
The increase in unearned revenues reflects the billings for
spring semester tuition and fees of $273 million.
Net position is up $88.8 million since June 30, 2014, due
primarily to the state’s allocation of general fund
appropriations to the University at the beginning of the fiscal
year, which will be expended as the fiscal year progresses.
67
UNIVERSITY OF VIRGINIA - Academic Division Only
Statement of Net Position (Unaudited)
As of 12/31/14
ASSETS
Current Assets
Cash and short term investments
Receivables (accounts, notes, other)
Inventories, prepaids and other
Total current assets
As of 6/30/14
(in 000s)
$
Noncurrent Assets
Endowment and other investments
Receivables (notes)
Deposits with bond trustees & other
Capital assets, net
Other
Total noncurrent assets
535,374
280,362
249
815,985
$
4,779,617
22,909
0
2,195,632
14,369
7,012,527
Total assets
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Unearned revenues and deposits
Commercial paper
Internal deposits held for Wise, SWVHEC and agencies
Total current liabilities
4,704,472
22,486
1,049
2,186,184
14,479
6,928,670
$
7,828,512
$
7,459,657
$
19,073
390,100
243,708
16,924
669,805
$
14,609
131,700
205,893
7,276
359,478
Noncurrent Liabilities
Long-term debt
Other long-term liabilities
Total noncurrent liabilities
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted:
Nonexpendable
Expendable
Unrestricted
Total Net Position
$
732,441
559
733,000
762,861
460
763,321
1,402,805
1,122,799
1,214,093
$
528,060
2,906,183
1,777,371
6,425,707
Total Liabilities & Net Position
$
68
492,845
37,893
249
530,987
7,828,512
1,265,394
512,240
2,868,908
1,690,316
6,336,858
$
7,459,657
Statement of Revenues, Expenses, and Changes in Net Position
(SRECNP)
Shown on the following page, this statement outlines the
Academic Division’s revenues, expenses, and other changes in net
position as of December 31, 2014 as compared to the same period
last year. It is developed based on GAAP but is unaudited.
Operating Revenues:
Total operating revenues for the six months ended December
31, 2014 were $733.8 million, an increase of 2.6% over the prior
year. There were modest increases in most revenue categories.
Grants and contracts revenue had a very slight 1% decline for
the first six months of the fiscal year. Student tuition and
fees are reported net of discounts and allowances and are up
4.7% as compared to last year, due to undergraduate enrollment
growth and increases in undergraduate, graduate, and
professional tuition and fees approved by the Board of Visitors
in February and April of 2014.
State appropriations are $1.4 million less than at this
same point last year. The FY 2015 appropriation incorporates a
permanent $8.2 million, or 6.6%, budget reduction, partially
offset by technical adjustments related to health insurance,
retirement, and other benefit adjustments.
Auxiliary revenues have increased by 4.4% through the
second quarter primarily due to additional ACC revenue
distribution. Investment income is down significantly when
compared to the same period last year. Earnings for the first
six months of FY 2015 were only $40.4 million, compared to
$358.8 million at December 31, 2013, primarily related to the
0.9% return on the UVIMCO Long Term Pool through December 31,
2014.
Operating Expenses:
Operating expenses were up 6.6% for the period ended
December 31, 2014 compared to last year. Approximately 3.5% of
the increase is attributable to a timing difference in the
recording of the last payroll of the calendar year. There was
also an October 2014 pay increase for faculty and university
staff.
69
UNIVERSITY OF VIRGINIA - Academic Division Only
Statement of Revenues, Expenses, and Changes in Net Position (Unaudited)
OPERATING REVENUES AND EXPENSES:
Operating Revenues
Student tuition and fees, net
Grants and contracts (federal, state, nongovernmental)
State appropriations
Gifts
Sales and services of educational departments
Auxiliary enterprises revenues, net
Pell grants
Other operating income
Total operating revenues
Six Months Ended
12/31/2014
12/31/2013
(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
Operating revenues less operating expenses
253,904
147,703
143,924
66,201
13,287
95,862
4,458
8,450
733,789
$
242,554
149,233
145,331
63,272
10,048
91,840
4,256
23,110
729,644
178,957
143,215
22,573
84,728
23,220
44,522
48,130
29,725
64,377
55,017
8,980
703,444
30,345
161,349
142,572
19,729
75,132
19,386
43,211
47,464
30,355
61,032
53,483
6,095
659,808
69,836
NONOPERATING REVENUES AND EXPENSES
Nonoperating Revenues
Capital appropriations, grants and gifts
Investment income
Additions to permanent endowments
Total nonoperating revenues
25,911
40,434
10,507
76,852
29,955
358,820
3,995
392,770
Nonoperating Expenses
Interest on capital asset related debt, net
Loss on capital assets
Other
Total nonoperating expenses
Nonoperating revenues less nonoperating expenses
15,195
580
2,573
18,348
58,504
15,932
702
13
16,647
376,123
810,641
721,792
88,849
1,122,414
676,455
445,959
Total Revenues
Total Expenses
Increase in net position
NET POSITION
Net position - July 1 (Beginning)
Net position -- December 31 (ending)
$
70
6,336,858
6,425,707
$
5,615,796
6,061,755
Comparative Statement of Sources and Uses of Funds
This report, on the following page, reviews actual results
for period ended December 31, 2014 compared to budgeted sources
and uses of funds of the Academic Division. The cash-based
operating plan differs from GAAP 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 cash-based operating plan nets financial aid funded
from tuition from gross tuition, but does not net financial
aid funded from other sources (gifts, endowments, and
grants).
• The cash-based operating plan reflects mandatory fees
collected for auxiliaries and internal revenues collected
from internal departments as other tuition and fees, sales,
investment, and other revenue.
• The cash-based operating plan excludes unrealized gains.
Through December 31, 2014, sources in excess of uses is
right on target within $2 million or 0.5%.
Sources of Funds:
Actual available sources of funds for the Academic Division
as of December 31, 2014 were $1.1 million less than the amount
budgeted for the period. The 2014-15 revised budget includes
the final actions taken by the General Assembly in June 2014 to
reduce the expected FY 2015 state general fund appropriation by
$8.2 million. The November 2014 $8.16 million reduction is
reflected in the actual state appropriation received.
Uses of Funds:
Total uses of available funds for the Academic Division
totaled $722 million which is 0.4% below the amount budgeted for
the period.
71
72
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.C. Medical Center Financial Report
Medical Center Financial Report
Summary of Operating Statistics and Financial Performance Measures
Fiscal Year to Date with Comparative Figures for Prior Year to Date – November FY15
OPERATING STATISTICAL MEASURES - Novem ber 2014
OTHER INSTITUTIONAL MEASURES - Year to Date
ADMISSIONS and CASE MIX - Year to Date
Actual
ADMISSIONS:
Adult
Pediatrics
Psychiatric
Transitional Care
Culpeper
Subtotal Acute
Budget
% Variance
Prior Year
10,113
1,223
505
124
505
12,470
10,187
1,188
507
169
491
12,542
(0.7%)
2.9%
(0.4%)
(26.6%)
2.9%
(0.6%)
10,246
1,202
500
130
12,078
1,869
1,938
(3.6%)
1,529
Total Admissions
14,339
14,480
(1.0%)
13,607
Adjusted Admissions
25,453
25,133
1.3%
23,555
Observation
CASE MIX INDEX:
All Acute Inpatients - MC
Medicare Inpatients - MC
2.03
2.16
1.98
2.10
2.5%
2.9%
1.97
2.10
Actual
ACUTE INPATIENTS:
Inpatient Days
All Payor CMI Adjusted ALOS - MC
Average Daily Census
Births
OUTPATIENTS:
Clinic Visits
Average Daily Visits
Emergency Room Visits - MC
Emergency Room Visits - CRH
SURGICAL CASES
Main Operating Room (IP and OP)
UVA Outpatient Surgery Center
Culpeper Surgery Center
Total
Budget
% Variance
Prior Year
75,097
2.90
490
776
70,843
2.73
463
767
6.0%
(4.6%)
5.8%
1.2%
71,466
2.87
467
724
343,457
3,513
25,401
4,958
352,730
3,596
24,858
4,714
(2.6%)
(2.3%)
2.2%
5.2%
337,273
3,414
24,660
0
7,412
4,361
570
12,343
7,049
4,585
610
12,244
5.1%
(4.9%)
(6.6%)
0.8%
7,468
4,192
11,660
OPERATING FINANCIAL MEASURES - Novem ber 2014
REVENUES and EXPENSES - Year to Date
($s in thousands)
NET REVENUES:
Net Patient Service Revenue
Other Operating Revenue
Total
Actual
$
EXPENSES:
Salaries, Wages & Contract Labo
Supplies
Contracts & Purchased Services
Depreciation
Interest Expense
Total
$
Operating Income
$
Operating Margin %
Non-Operating Revenue
$
Net Income
$
559,165
16,470
575,635
253,367
129,982
121,869
36,308
8,382
549,908
25,727
4.5%
7,920
33,647
Budget
OTHER INSTITUTIONAL MEASURES - Year to Date
% Variance
Prior Year
539,455
20,477
559,932
3.7%
(19.6%)
2.8% $
502,434
19,551
521,985
(0.3%)
(9.0%)
1.9%
(0.5%)
(13.9%)
(1.9%) $
26.4% $
$
252,608
119,209
124,263
36,133
7,362
539,575
20,357
3.6%
15,687
(49.5%) $
228,631
116,691
107,921
34,124
5,960
493,327
28,658
5.5%
23,522
$
36,044
(6.7%) $
52,180
$
$
$
$
($s in thousands)
NET REVENUE BY PAYOR:
Medicare
Medicaid
Commercial Insurance
Anthem
Aetna
Other
Total Paying Patient Revenue
Actual
$
$
OTHER:
Collection % of Gross Billings
Days of Revenue in Receivables (Gross
Cost per CMI Adjusted Admission
$
Total F.T.E.'s (including Contract Labor)
F.T.E.'s Per CMI Adjusted Admission
73
167,325
114,871
94,068
109,720
41,552
31,629
559,165
Budget
$
$
29.74%
47.8
10,831 $
7,601
22.91
177,833
104,862
88,505
108,904
39,017
20,334
539,455
28.90%
45.0
11,031
7,659
23.95
% Variance
(5.9%) $
9.5%
6.3%
0.7%
6.5%
55.6%
3.7% $
2.9%
(6.2%)
1.8% $
0.8%
4.3%
Prior Year
165,629
97,666
82,431
101,430
36,340
18,938
502,434
30.61%
47.2
10,681
7,016
23.24
University of Virginia Medical Center
SUMMARY OF OPERATING STATISTICS AND FINANCIAL PERFORMANCE MEASURES
Fiscal Year to Date w ith Com parative Figures for Prior Year to Date - Novem ber 30, 2014
Assumptions - Operating Statistical Measures
Adm issions and Case Mix Assum ptions
Admissions include all admissions except normal new borns
Pediatric cases are those discharged from 7 West, 7 Central, 7 North, NICU and PICU
Psychiatric cases are those discharged from 5 East
TCH cases are those discharged from the TCH, excluding any Medicare interrupted stays
All other cases are reported as Adult
Short Stay Admissions include both short stay and post procedure patients
Case Mix Index for All Acute Inpatients is All Payor Case Mix Index from Stat Report
Other Institutional Measures Assum ptions
Patient Days, ALOS and ADC figures include all patients except normal new borns
Surgical Cases are the number of patients/cases, regardless of the number of procedures performed on that patient
Assumptions - Operating Financial Measures
Revenues and Expenses Assum ptions:
Medicaid out of state is included in Medicaid
Medicaid HMOs are included in Medicaid
Physician portion of DSH is included in Other
Non-recurring revenue is included
Other Institutional Measures Assum ptions
Collection % of Gross Billings includes appropriations
Days of Revenue in Receivables (Gross) is the BOV definition
Cost per CMI Adjusted Discharge uses All Payor CMI to adjust
74
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.D. Endowment/Long-Term Investments,
Including Related Foundations, as of
December 31, 2014
School of Medicine and related foundations
e ated
Foundation
Related
Alumni
Funds Invested
Foundation
Association by Direction of
Rector and
Funds Invested Funds Invested
Foundation
Visitors Funds by UVIMCO
by UVIMCO
Board
56,167 $
$
968,681 $
10,691 $
- $
(in thousands)
Total
1,035,539
College of Arts & Sciences and related foundations
School of Law and related foundation
Darden School of Business and related foundation
439,443
54,133
83,542
285,204
12,511
-
5,754
110,767
541,250
450,104
133,094
271,703
409,091
132,296
12,129
-
4,294
Frank Batten School of Leadership and Public Policy
School of Engineering and Applied Science and related foundation
McIntire School of Commerce and related foundation
2,402
631
132,296
127,710
109,383
113,179
55,708
53,044
University of Virginia's College at Wise and related foundation
58,845
13,909
64,417
52,807
-
2,814
-
75,556
Graduate School of Arts & Sciences
School of Nursing
Curry School of Education and related foundation
15,877
11,163
School of Architecture and related foundation
21,660
3,794
469
-
27,040
25,923
School of Continuing & Professional Studies
2,380
-
57
-
2,437
University of Virginia Medical Center and related foundations
Jefferson Scholars Foundation
532,684
-
72,391
266,446
1,374
15,804
13,825
622,253
-
Centrally Managed University Scholarships
Athletics and related foundation
214,657
48,409
68,180
493
-
214,657
117,082
Provost
111,487
-
-
-
111,487
-
-
64,380
89,238
36,683
-
101,063
89,238
Alumni Association (Funds Held for Others)
Alumni Association
University of Virginia Foundation and related entities
2,802
64,417
55,621
280,271
-
86,323
-
-
86,323
Miller Center and related foundation
62,002
11,978
-
-
73,980
University Libraries
69,413
-
239
-
69,652
-
64,735
-
-
64,735
11,112
-
-
11,112
University - Unrestricted but designated
375,253
-
-
-
375,253
University - Unrestricted Other
216,340
-
-
-
216,340
University - Unrestricted Quasi and True Endowment
197,768
-
-
-
197,768
University - Restricted
145,924
-
-
-
145,924
Alumni Board of Trustees
University Investment Management Company
University Charitable Remainder Trusts
73,819
$
University Operating Funds - Short Term Investments
4,160,276
$
1,318,776
$
238,112
$
190,160
73,819
$
5,907,324
856,798
University Operating Funds - Long Term Investments w/ UVIMCO
1,349,786
$
2,206,584
Source: Associate Vice President for Finance
Date: February 10, 2015
75
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.E. Quasi-Endowment Actions, October 1,
2014 – December 31, 2014
The quasi-endowment actions shown on the next page were
approved by either (1) the Executive Vice President and Chief
Operating Officer (EVP-COO), 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 EVP-COO:
•
In October 1990 and June 1996, the Board of Visitors
approved resolutions delegating to the EVP-COO 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.
76
UNIVERSITY OF VIRGINIA
Quasi-Endowment Actions
October 1, 2014 – December 31, 2014
Additions from Gifts
Access UVA Scholarships
Buchanan, Carol P. Quasi-Endowment Fund
President's Fund for Excellence Unrestricted Quasi-Endowment
University Quasi-Endowment Fund 1
Total Additions from Gifts to Quasi-Endowments
$
Additions from Endowment Income (Capitalizations)
Total Additions from Endowment Income to Quasi-Endowments
$
$
Amount
159,000
488,970
83,734
220,137
951,841
-
Divestments
Center for SCAT Restricted Quasi-Endowment
$
66,595
Mellon Prostate Cancer Research Quasi-Endowment Fund
475,000
Trolinger, Margaret M. Rheumatoid Arthritis Research
175,000
Total Divestments from Quasi-Endowments
$
716,595
Notes:
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: Associate Vice President for Finance
Date: February 10, 2015
77
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
March 24, 2015
COMMITTEE:
Finance
AGENDA ITEM:
II.F. Sponsored Programs Restricted Grant and
Contract Activity as of December 31, 2014
As shown on the subsequent page, through the six months
ended December 31, 2014, the University received sponsored
program awards totaling $159.3 million. This is an increase of
4.3% in award dollars for the same period in fiscal year 2014,
which saw $152.8 million in total awards. The number of awards
is also slightly higher with 1,056 awarded through December 31,
2014 versus 1,039 awarded through December 31, 2013, an increase
of 1.6%. It is important to note that mid-year totals have not
necessarily been predictive of performance for the full year.
Based on the federal budget outlook, we do not anticipate
significant changes in future federal grant funding available.
Faculty hiring, investment through the Cornerstone Plan, and
continued success in faculty proposals could, of course, impact
the proportion of federal funding awarded to the University.
Comprising 66% of sponsored activity, federal support to
the University through December 2014 is up $7.7 million or 7.8%
over the same period last year. We continue to see an increase
from our largest funding agency the Department of Health and
Human Services (up 13.6% to $67.7 million), as well as the
Department of Education (47.9% increase to $7.1 million), and
NASA (18% increase to $1.3 million). There were declines in
funding from the National Science Foundation (down 14.5% to
$14.8 million), the Department of Energy (down 4.9% to $3.9
million), and other federal (down 7.7% to $3.6 million).
Foundation, industry, and subcontracts make up 27.1% of
sponsored activity, declining by 7.9% to $43.2 million. State
awards make up 6.8% of our grants and contracts, increasing
nearly 32% to $10.8 million thus far through December 2014.
The School of Medicine was awarded 56.9% of all award
dollars, followed by the School of Engineering and Applied
Sciences (18.1%), the College of Arts and Sciences (11.7%), and
the Curry School of Education (8.1%). The remaining 2% was
distributed among various areas within the University.
78
UNIVERSITY OF VIRGINIA
Sponsored Programs Restricted Grant and Contract Activity
Fiscal Year 2015 as of December 31, 2014
(in millions)
School
Medicine
Engineering
Arts & Scs.
Education
Nursing
Law
Architecture
Dept. of
Health &
Human
Services
$
Other 1
$
0.3
79
Six Month Total Through 12/31/14
% of Total
# of Awards
$
Six Month Total Through 12/31/13
% of Total
# of Awards
$
% $ Increase/Decrease
% # of Awards Increase/Decrease
61.4
0.4
4.6
1.0
-
Nat'l
Science
Found.
8.3
3.4
1.8
-
Dept. Of
Education
$
1.3
0.4
6.4
-
Dept. of
Defense
$
0.3
0.6
5.1
1.2
-
Dept. of
Energy
$
-
0.4
0.1
3.1
-
NASA
$
0.3
0.5
0.8
-
Other
Federal
$
-
1.3
1.6
0.2
-
Foundation,
Industry,
and
Subcontract
$
0.5
24.7
9.3
3.6
3.5
0.5
0.4
0.2
State
$
1.0
3.5
3.8
1.2
0.2
0.3
-
Six Month
Total
Through
12/31/14
$
1.8
67.7 $
42.5%
176
14.8 $
9.3%
54
7.1 $
4.5%
18
6.9 $
4.3%
26
3.9 $
2.4%
19
1.3 $
0.8%
13
3.6 $
2.3%
21
43.2 $
27.1%
670
10.8 $
6.8%
59
59.6 $
39.0%
181
17.3 $
11.3%
61
4.8 $
3.1%
13
6.9 $
4.5%
30
4.1 $
2.7%
13
1.1 $
0.7%
15
3.9 $
2.6%
23
46.9 $
30.7%
651
8.2
5.4%
52
13.6%
-2.8%
-14.5%
-11.5%
47.9%
38.5%
0.0%
-13.3%
-4.9%
46.2%
18.2%
-13.3%
-7.7%
-8.7%
-7.9%
2.9%
90.6
28.8
18.7
12.9
1.9
0.7
0.2
5.5
% of Six
Month
Total
Through
12/31/14
Six Month
Total
Through
12/31/13
56.9% $
18.1%
11.7%
8.1%
1.2%
0.4%
0.1%
3.5%
% of Six
Month
% Inc/Dec
Total
Over
Through
12/31/13 Prior Year
88.1
27.7
18.1
13.1
1.4
0.6
0.1
57.6%
18.1%
11.8%
8.6%
0.9%
0.4%
0.1%
2.8%
4.0%
3.3%
-1.5%
35.7%
16.7%
100.0%
3.7
2.4%
48.6%
159.3
1,056
$
152.8
1,039
31.7%
13.5%
4.3%
1.6%
Note: Historically, mid-year totals have not been predictive of performance for the entire fiscal year
1
Includes: Center for Public Service; Chief of Police; Darden School of Graduate Business Administration; Executive Vice President and Provost; Facilities Management; Frank Batten School of Leadership and Public Policy;
Miller Center; Student Health; UVa's College at Wise; Vice President and Chief Student Affairs Officer; Vice President for Diversity and Equity; Vice President for Research; Vice Provost for Academic Affairs; Vice Provost
for Academic Outreach; Vice Provost for Global Affairs; Vice Provost for the Arts; Virginia Foundation for the Humanities.
Source: Associate Vice President for Finance
Date: January 16, 2015