University of Virginia
2005-2006 Budget Summary
All Divisions
UNIVERSITY OF VIRGINIA
BUDGET DETAIL
2005-2006
Cover photograph courtesy of Dan Addison
UNIVERSITY OF VIRGINIA – ALL DIVISIONS
2005-2006 OPERATING BUDGET SUMMARY
The operating budget for the period July 1, 2005 through June 30, 2006 for the
University of Virginia will total $1.88 billion, an increase of $138.9 million or 8.0 percent
compared with the 2004-05 projection. Of the total budget, $1,040.8 million or 55.4 percent
relates to the Academic Division (including the Schools of Medicine and Nursing), $812.6
million or 43.2 percent to the Medical Center, and $26.6 million or 1.4 percent to the University
of Virginia’s College at Wise (Wise).
OPERATING BUDGET
(in millions)
Academic Division
Medical Center
Wise
Total
2005-06
Budget
$1,040.8
$812.6
$26.6
$1,880.0
2004-05
Projection
$981.0
$735.1
$25.0
$1,741.1
Increase
$59.8
$77.5
$1.6
$138.9
%
Increase
6.1%
10.5%
6.4%
8.0%
2004-05 2003-04
Budget
Actual
$989.6
$910.1
$720.1
$664.0
$21.7
$20.3
$1,731.4 $1,594.4
SOURCES OF THE OPERATING BUDGET
As shown below, patient revenues (43.3 percent) provide the greatest proportion of the
operating budget, followed by grants and contracts (16.0 percent) and tuition and fees (15.0
percent). Auxiliary enterprise operations will provide 8.8 percent of the operating budget, while
the state general fund appropriation will contribute 8.1 percent and gifts and endowment
distributions will provide 7.1 percent.
2005-06
Private
7.1%
2004-05
Other
1.7%
State GF
8.1%
Patient Rev.
43.3%
Other
1.7%
Patient Rev.
42.2%
State GF
8.3%
Auxiliaries
8.8%
Tuition &
Fees
15.0%
Private
7.5%
Auxiliaries
8.9%
Grants &
Contracts
16.0%
Tuition &
Fees
15.0%
Grants &
Contracts
16.4%
PROJECTED CHANGE IN NET ASSETS
For the fiscal year 2006, there is a projected surplus of revenues after non-operating
items of $98.2 million, as shown on the following page. After adding back funded depreciation
of $51.2 million at the Medical Center, there are planned transfers to contingency, debt service,
renovation, replacement, and expansion reserves of $104.6 million, leaving a projected net
change in assets of $44.8 million. In the Academic Division, there is a $8.0 million reserve for
1
educational and general salaries and contingencies and a $1.1 million transfer to debt service
reserve to fund institutional commitments. The remaining Academic Division transfer to
reserves of $30.2 million and the projected surplus is attributable to the auxiliary units. The
$58.5 million surplus after non-operating items in the Medical Center will be used, along with
$51.2 million of funded depreciation, to provide a $65.3 million transfer to reserves and capital
requirements, leaving a $44.4 million projected increase in net assets. Sources of funds at Wise
will equal projected usages.
2005-06 SOURCES AND USES - ALL DIVISIONS (in millions)
Academic Medical
Division
Center
$1,041.2
$853.1
(1,001.5)
(812.6)
18.0
39.7
58.5
Operating sources
Operating expenses, net of internal recoveries
Non-operating revenues and (expenses)
Surplus after non-operating items and before transfers
Add back funded depreciation
Less: Transfers to contingency and capital reserves
(39.3)
Increase (decrease) in net assets
$ 0.4
Wise
Total
$26.6 $1,920.9
(26.6) (1,840.7)
18.0
98.2
51.2
(65.3)
$ 44.4
-
51.2
(104.6)
$ -
$ 44.8
EMPLOYMENT LEVELS – ALL DIVISIONS
The University has planned for 14,337 full-time equivalent (FTE) positions for 2005-06,
an increase of 2.4 percent or 342 FTEs from the 2004-05 revised budget levels as shown below.
The Academic Division is expecting 8,074 FTEs, an increase of 217 FTEs, the Medical Center is
projecting 6,012 FTEs, an increase of 115 over current staffing levels, and the College at Wise
employment will increase by 10 FTE to 251 FTE.
History of Employment Levels
15,000
12,500
10,000
7,500
5,000
2,500
0
1998
1999
UVA
2000
2001
2002
Med Ctr
2003
2004
2005
2006
Wise
KEY ISSUES
Faculty and staff compensation and retention remain a concern for all divisions and will
be discussed in later sections. For the Academic Division, actions by the Board of Visitors
2
helped to focus several University planning and funding priorities toward operational
restructuring, financial aid, compensation, deferred maintenance, diversity, alumni engagement,
and research. Later sections will outline how these actions are reflected in the 2005-06 budget.
For the Medical Center, the top priority remains to provide quality patient care while
continuing to earn an appropriate operating margin to fund its capital needs. Labor shortages
and increases in pharmaceutical and medical device expenses continue to place upward pressure
on the ability to provide quality patient care. The 2005-06 fiscal plan features the continued
implementation of the Integrated Health Information Management System and the Decade Plan.
The fiscal plan also includes enhanced personnel compensation packages consistent with the
market, increasing surgical case volume, reducing patient length of stay, and the expansion of
facilities and services at the Core Lab, the Virginia Ambulatory Services Center, the radiology
imaging center, and satellite dialysis.
COMPARISON OF THE OPERATING BUDGET TO AUDITED FINANCIAL RESULTS
The University’s 2005-06 operating budget describes a financial plan that is developed
on a basis that is separate but related to the method of preparing the audited financial statements,
which are developed in accordance with generally accepted accounting principles (GAAP).
Because the operating budget and the audited financial statements are prepared with somewhat
different objectives and are based on differing rules and conventions, it is not always obvious
how they are related. In some cases similar descriptions are used in both reports even though the
precise definitions and the specific amounts are not identical. However, both sets of figures are
accurate for their particular purposes, and both are drawn from the University’s financial
applications.
Rather than reporting on operating results after they have occurred as in the audited
financial statements, the annual operating budget reflects the basis on which budget decisions are
made and executed. The objective of the operating budget is to accomplish current University
goals while ensuring our physical and financial resources are appropriately preserved for the
longer term. It is the responsibility of the University administration to propose annual plans
which keep expenditures and revenues in balance.
The schedule from the audited financial statements that most closely relates to the annual
operating budget is the Statement of Revenues, Expenses, and Changes in Net Assets
(SRECNA). Much of the lower half of the SRECNA deals with non-operating activities
affecting the balance sheet and the long-term value of assets, such as realized and unrealized
appreciation on the endowment, gifts received and additions to the endowment, pledges from
donors, and funding received for capital projects. In accordance with standards from the
Governmental Accounting Standards Board, the SRECNA also classifies payments from the
Commonwealth – the general fund appropriation and the reimbursement of indigent care costs –
as non-operating activities. The Medical Center’s budget proposal includes some items
classified as non-operating on the SRECNA, including the reimbursement of indigent care costs.
However, for the Academic Division and Wise, the operating budget is concerned with the
annual impact on net assets and, accordingly, only includes those items impacting the annual
3
view – such as general fund appropriations. Projecting future balance sheet position is not a part
of the annual budgeting process currently.
The upper sections of the SRECNA plus the payments from the Commonwealth focus on
basically the same set of revenue and expense items as the annual operating budget. However,
this presentation differs from the operating budget due to the different rules and conventions
employed. Several of those differing rules are outlined below:
•
The GAAP financial statements are prepared on an accrual basis, while the operating
budget is prepared on a cash basis, which is consistent with the state’s operating
budget.
•
GAAP accounting rules require tuition revenues to be shown net of scholarship
allowances, while the operating budget shows tuition and fees as gross income and
the full amount of all student aid as an expense. It is important in the operating
budget to highlight both the revenue impact of tuition planning, as well as the
corresponding student financial aid requirements, including the funding source for
financial aid.
•
In the GAAP financial statements depreciation expense is recognized for buildings
and equipment. In the Academic Division’s operating budget, depreciation is not
funded and non-capital outlay purchases are recognized as expensed rather than
spread over the useful life of the purchase. This is, in part, a function of significant
maintenance funding coming to the University from the state as a capital
appropriation rather than through the operating budget. Academic Division
expenditures for major repair or renovation work occur within the reserve accounts –
and off the operating budget. Because of this treatment, the Academic Division’s
operating budget includes the transfer from operations (primarily for auxiliaries) to
the reserves in the year the transfer is made. In the auxiliary sections beginning on
page 21, planned reserve expenditures for the upcoming year are disclosed.
•
Alternatively, the Medical Center’s operating budget includes funded depreciation for
buildings and equipment similar to the GAAP treatment, but excludes transfers to
reserves.
•
GAAP statements recognize unrestricted income when received and reflect actual
endowment performance. In the operating budget, the source of expenditures is
shown rather than actual revenues recognized. Unrestricted income, including gifts
and indirect cost recoveries, is shown only as it is to be expended. Endowment
distributions are included only to the extent that expenditures are anticipated.
•
Direct lending is included in the GAAP statements as federal grants and contracts, but
excluded from the annual operating budget.
4
•
Fringe benefit expenditures are included in the operating budget using pooled benefit
rates; the GAAP basis statements include the impacts of the actual expenditures as
well as the related reserve liabilities and assets.
•
Self-funded insurance and healthcare reserves are excluded from the operating
budget, but are included in the GAAP-based financial statements.
At each Finance Committee meeting, the administration provides an overview of actual
results as compared to the budgeted financial plan for the most recently ended quarter. In this
quarterly overview, actual results are not presented in accordance with GAAP, but rather, are
presented consistent with the budget plan as described above. Therefore the actual results will
not tie back to audited financial statements, but will provide a useful basis for comparison to the
previously approved budget plan.
PERFORMANCE MEASUREMENT
Periodically, the Academic Division reports its performance on a set of measures to the
State Council of Higher Education in Virginia (SCHEV). From these reports, SCHEV has
created its Reports of Institutional Effectiveness (ROIE) which are published on its web-site.
This report is intended to provide meaningful information on the academic quality and
operational efficiency of the University. Selected measures from the most recent report are
presented on page 49. A revised set of performance measures together with targeted benchmarks
will be developed over the next few months in conjunction with implementation of the
Restructured Higher Education Financial and Administrative Operations Act.
The Medical Center has established a benchmark group of 29 academic medical centers
which are members of the University Health System Consortium, manage more than 400 beds,
and have a Medicare case mix index of greater then 1.6. Periodically, the Medical Center
compares itself against these peers on several critical indicators. These measures are presented
in the appendix on page 55.
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6
ACADEMIC DIVISION BUDGET DEVELOPMENT
The first step of budget development is the estimation of required cost increases related
to salary and fringe benefits for the upcoming year. Secondly, the Budget Office calculates
expenditure targets for state and local general budgets for each vice president. The targets are
based on preliminary budget assumptions approved by the President and reported to the Board of
Visitors in October 2004. The target development process is designed to give maximum
flexibility to vice presidents in the allocation of resources among their activities. Budgets for
other sources (gifts, endowment, grants, contracts, indirect cost recoveries, and auxiliaries) do
not have initial targets, but are set by the responsible unit based upon expected activity. The third
step in the budget development process is the projection of funds available for expenditure.
Actions by the Board of Visitors – approval of housing, dining, mandatory fee, and tuition rates
– and the General Assembly – passage of a budget – are steps in that process.
The state has authorized a salary increase of 3 percent for all classified employees plus an
additional $50 per year of service for all employees with 5 or more years of continuous service.
The state has authorized a 4 percent average increase for all administrative and professional
faculty, part-time teaching and research faculty, and graduate teaching assistants (GTAs). For
full-time teaching and research faculty, the state has authorized a 5 percent average merit-based
salary increase. For departmental budgets funded from state and local general sources, a $6.7
million salary reserve is set aside from general ($2.7 million) and non-general ($4 million) funds
for the cost of these salary increases, and departmental budgets have not been adjusted.
Departmental budgets for other sources (gifts, endowment, grants, contracts, indirect cost
recoveries, and auxiliaries) reflect expected salary increases.
Departmental budgets funded from state and local general sources have been adjusted for
increased benefit costs of $4.4 million, primarily due to the employer share of employee health
insurance premiums increasing by an average of 22 percent. While the Commonwealth will fund
$1.4 million of the increased benefit cost for state budgets from general funds, the remaining $3
million will be covered by tuition revenues. Departmental budgets for other sources also reflect
the benefit cost increase, but funded from their own sources.
As is consistent with the past few years, no incremental funding for increases in "other
than personal services" budget categories has been included in the state or local general budgets
or targets except as specifically identified in subsequent sections of this narrative.
In the final step of budget development, vice presidents are given an opportunity to
present prioritized lists of resource needs that cannot be addressed within the target budgets
provided. Available institutional funds are then allocated towards the highest priority initiatives.
Incremental tuition and fee revenue, indirect cost recoveries from grants and contracts, state
general funds, and private funds provided in excess of $17 million of funding available to meet
the highest priority needs in 2005-06. The University was able to meet all mandatory
commitments, re-establish a $600,000 reserve for emergency needs, and meet some critical
needs for the next fiscal year. More information concerning the 2005-06 addenda allocation is
included in the expenditure budget analysis later in this document.
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PLANNING PRIORITIES
Schools and departments have been encouraged to fully utilize their available resources
to meet the priorities that have been identified in the University’s strategic planning efforts.
Within the financial and staffing limitations established by the budget, vice presidents, deans,
and directors of major units of the University have the flexibility to re-allocate available funds to
their highest priority program requirements.
KEY INITIATIVES IMPACTING THE UNIVERSITY’S BUDGET
Higher Education Restructuring
For the Academic Division, the most significant accomplishment of 2004-05 was the
General Assembly and the Governor’s approval of legislation to make Virginia's public colleges
and universities more efficient, more competitive, more accessible, and more accountable. Over
the next year, the University expects to work with the state to develop a management agreement
providing the University with the highest level of autonomy available under the legislation.
Additionally, we will develop six-year financial, academic and enrollment plans for the period
July 2006 through June 2012.
Access UVa
The 2005-06 budget includes an additional $2.2 million institutional investment for the
continued implementation of Access UVa. While all undergraduates will continue to be offered
a total financial aid package equal to their federally determined financial need, first and second
year undergraduates with a family income at or below 200 percent of poverty level ($37,700 in
2004) will be offered a financial aid package made up entirely of grants (no work study or
loans). Additionally, first-year students and transfers from the Virginia Community College
System entering the University in the fall of 2005 will be guaranteed that their loan burden due
to demonstrated financial need will not exceed $18,000 after four years of attendance.
Competitive Compensation
In 2003-04, the Board approved a resolution to increase the compensation of the
University’s faculty and staff to a competitive level. In 2004-05, the Board further refined that
goal with a resolution to move the University’s teaching and research average faculty salary to a
position between the 15th and 19th rank among AAU universities. At the same time, the Board
also approved a supplemental 2 percent increase for faculty in addition to the state authorized 3
percent increase. This supplement allowed us to close the gap between the average teaching and
research faculty salary at the University and at the institution holding the 19th position of AAU
institutions from $5,300 in 2003-04 to $2,900 in 2004-05.
For 2005-06, the General Assembly has approved a 5 percent average salary increase for
full-time teaching and research faculty. The University’s proposed budget also includes funds
for a recommended supplemental increase of 0.5 percent. We project that this total increase of
5.5 percent should reduce the gap between the University’s average faculty salary and the 19th
position to $1,200 in 2005-06. We further project that, with a potential 5 percent increase from
the state, the University should move to the 19th position of the AAU rankings in 2006-07.
8
We have also reserved a third round of $250,000 to be strategically allocated to classified
staffing areas with critical needs.
Deferred Maintenance
In February 2005, the Board heard a report regarding the Academic Division’s deferred
maintenance backlog which currently stands at $144 million for the University’s educational and
general (E&G) buildings, not including maintenance deficiencies for the auxiliary enterprise
units, the Medical Center or Wise. The Board agreed that we should (1) move to establish ongoing maintenance investments that will protect our physical assets; (2) make one-time
investments to reduce the backlog to a reasonable level based on industry standards; and (3) not
allow our current Facilities Condition Index to worsen.
In order to establish on-going maintenance investments to protect the University’s
physical assets, our goal is to invest two percent of the asset value – based on industry guidelines
- annually into maintenance. For the E&G buildings, this will require increasing annual
maintenance expenditures by $1.5 million per year for the next 10 years. In addition, we must
continue to budget two percent of the value of any new facilities that come on line. The 2005-06
budget includes a new permanent allocation of $1.5 million from centrally-managed indirect cost
recoveries from research to finance the first annual contribution to ongoing maintenance needs.
In order to bring the maintenance backlog down to an industry recognized level whereby
identified maintenance deficiencies are 5 percent of the E&G asset value, we will also need to
make at least $73 million in one-time investments in maintenance over the ten year period. In
February, the Board expressed a strong preference towards using debt to meet one-time
maintenance needs. Over the next six months, we will work to establish guidelines for using
debt to finance the one-time investments in the best manner to protect the University’s fixed
assets, as well as debt capacity.
These investments will enable the University to ensure that the facilities condition index
of the E&G buildings will not worsen beyond the current level in 2005-06. While the fair
market value of the asset inventory increases, there could be a slight increase in the absolute
value of the backlog, however, we should not see the Facilities Condition Index (identified
maintenance deficiencies divided by the asset value) worsen with this investment. We will see
greater progress towards reducing both the absolute backlog number and the FCI measure in
future years as we ramp up to a higher level of one-time investment. It will take Facilities
Management several years to plan and gear up staffing to meet the highest level of activity
needed for the 10 year plan to address the E&G deferred maintenance backlog. We will also
coordinate with the auxiliary units, the Medical Center, and Wise to ensure that sufficient funds
are being reinvested into their physical plant to maintain a good facilities condition index.
Base Budget Adequacy
The General Assembly has provided $3.9 million in additional general funds in 2005-06
to assist in addressing base budget adequacy. The University has made several investments in
9
key academic areas with these additional funds. We have addressed unfunded enrollment
growth in the College of Arts & Sciences with a $2.3 million base budget increase. The College
absorbed about 75 percent of the total undergraduate enrollment growth of more than 1,800
students between 1991 and 2004 and requires an infusion of base support to maintain its
instructional excellence. We have provided $750,000 to Alderman Library as the cost of
providing a world class research library continues to rise, and we have provided funds to expand
the undergraduate nursing program ($283,000) and teacher education ($82,650). We expect the
teacher education program to add about 30 students by 2008, while the undergraduate nursing
program plans to add 88 students by 2009. Base budget adequacy funding also covers
administrative and physical plant operating expenses and will partially support the $1.5 million
increase in utility costs for educational and general facilities in 2005-06.
Diversity Commission
The President's Commission on Diversity and Equity made several recommendations in
October that have been addressed in the 2005-06 budget. While the budget for the Chief Officer
for Diversity and Equity was established in 2004-05, the search has not been completed.
Savings due to the vacant position in 2004-05 will be allocated to the one-time cost of
developing new courses that address issues of racial or ethnic diversity and develop innovative
teaching approaches for a diverse student body. Other recommendations funded in the 2005-06
budget include: $269,000 to establish an Office of Graduate Student Diversity, $128,000 to hire
a Director of Diversity Procurement Programs, $125,000 to continue the Excellence in Diversity
Fellows Program, $77,000 for a Coordinator for First-Year Residential Initiatives and related
educational programs, $40,000 to establish community project/research grants program for
undergraduates, and $35,000 for program support for the Office of African-American Affairs.
Research Enhancement Initiative
In February 2004, the Board approved an initiative to enhance research at the University
over the next five years through the investment of $60 million in institutional resources to match
$65.8 million from school reserves, indirect cost recoveries, gifts, and state general obligation
bond proceeds. The Board’s investment would allow construction to commence on Medical
Research Building Number 6 (MR-6), provide seed funding for an Advanced Research and
Technology (ART) facility, and support the recruitment and hiring of ten world class faculty.
The Vice President and Provost and Vice President for Research and Graduate Studies
have worked with the deans and faculty in sciences and engineering to nominate excellent
faculty candidates for this new program. To identify candidates, letters were sent to the provosts
and research vice presidents at the top 50 research institutions and top Historically Black
Colleges and Universities and advertisements were placed in the premier science and
engineering journals. A committee of the top University scientists was assembled to review over
150 applications from a variety of disciplines and schools. The review committee initially
narrowed the field to the top 30 faculty based on research excellence in their field, reputation and
potential fit at the University. Finally, while it was difficult to compare a great computer
scientist to a world class developmental biologist, the review committee ultimately narrowed the
list to the top ten desired candidates. The first recruit from that top ten will arrive at the
10
University in January 2006, and we expect several other exciting recruitment announcements
shortly.
MR-6, located south of the University hospital, is in final document review and
construction contract negotiations are scheduled for the summer of 2005. The new research
facility will add on to the existing MR-5 research facility with the start of construction planned
for late this calendar year. The ART facility at Fontaine Research Park, to be constructed by the
University of Virginia Foundation, is currently in the schematic design phase. Themes and
programs for the building have been identified which are closely aligned with the identified
strategic areas from the VA2020 report. Site construction is expected to begin December 2005.
Alumni Engagement
In 2004-05 the Board’s Alumni Relations Task Force made several recommendations that
will be implemented in 2005-06. At this time, new funding for these recommendations has been
allocated on a temporary basis, with permanent funding reliant upon an increase in unrestricted
private philanthropy to support these services. Specific investments include $1.7 million to
create a new department to coordinate constituent relations by engaging alumni across the
country to build a stronger network amongst our alumni, our local clubs, and the institution; $1
million to enhance already existing services related to alumni news, reunions, career services,
affinity groups, homecomings, and admissions; and $660,000 for interactive media
improvements to enhance the University’s presence on the internet, increase communication
with constituent groups, and electronically distribute information to specific alumni populations.
Student System Project
The Integrated Systems Project, begun in 1999, was charged with implementing an
integrated financial, human resources, and student information system for the University. In
2004-05, the student information phase of the project, known as the Student System Project
(SSP), began with the hiring of a director and a project director. It is expected that the Request
for Proposal for a student system vendor will be released before the end of the 2005 fiscal year.
During 2005-06, SSP expects to complete strategic planning, project structuring, and business
process redesign phases.
THE SCHOOL OF MEDICINE’S IMPLEMENTATION OF THE DECADE PLAN
The Decade Plan – a joint planning effort of the School of Medicine, School of Nursing,
the Health Sciences Library, the Medical Center, and the Health Services Foundation – has
charted the ways in which the Health System will create innovative “Models for all of U.S.” in
areas such as patient service, translational research from cell to bedside, and professionalism in
teaching and service to the community.
In 2004-05, the School of Medicine has noted progress in several important areas:
•
The Academy of Distinguished Educators awarded $100,000 in its first round of
grants to support innovative projects for research in education.
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•
The second class of the Leadership in Academic Medicine Program has gone through
the training sessions. The program fosters the development of future leaders who
understand the particular issues involved with academic medical education and who
will develop the skills to assume positions of vision and leadership.
•
Several curriculum innovations were implemented with great success. One is “Cells
to Society,” a three-day introductory course for first years that takes an entire disease
(e.g., diabetes) and presents it in its complete context from the molecular mechanisms
to societal implications (e.g., obesity). In addition, simulators were used to replace
animal models for specific educational procedures.
•
The Research Advisory Committee (RAC) advised the dean on research directions,
policies, and allocation of research support funds, including new faculty positions. It
recommended the recently implemented space productivity utilization policy, is
helping to shape the policy on external consulting activities, and has recommended a
model for central administration of core research facilities.
•
We have hired an Assistant Dean of Research/Scientific Director of the RAC, and
appointed an Associate Dean for Basic Research and an Associate Dean for Clinical
Research.
During 2005-06, the School of Medicine will continue to focus on curriculum redesign,
improvements in patient access and satisfaction, strengthening research support, and fostering
innovative clinical programs. The budget includes a $4 million allocation from the Pratt Fund to
assist in the continued implementation of the Decade Plan. This allocation will be specifically
used to develop new programs directly related to the implementation, to retain and recruit
outstanding faculty, and to initiate new clinical, research, education, and community service
ventures. The school is working with Health System Development to formulate a development
plan to help fund the initiatives evolving from the Decade Plan.
HIGHER EDUCATION EQUIPMENT TRUST
The 1986 General Assembly established a statewide Higher Education Equipment Trust
to meet the high priority equipment needs of higher education. Through June 30, 2005, the
University has received $98.8 million. The University’s next allocation, $9.4 million, is
anticipated for July 2005. As in 2004-05, the University plans to allocate the 2005-06 allocation
in a strategic manner – to assist in new faculty start-up packages, to purchase critical research
equipment, and to meet critical technology purchases which were deferred during the recent
budget reductions. This funding comes to the University as reimbursement of purchases, so
neither the allocation nor the related purchases are included in the University's 2005-06 budget.
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ACADEMIC DIVISION BUDGET
The Academic Division 2005-06 budget, as shown below, is proposed at $1,040.8 million
including $39.3 million in transfers to reserves, an increase of 6.1 percent over the 2004-05
projection of $981 million. Supplemental budget information provides more detail about the
fund sources (page 43) and uses (page 47).
ACADEMIC DIVISION OPERATING PLAN
(in thousands)
Sources of Available Funds
Tuition and fees
State general fund appropriation
Sponsored research direct costs & indirect cost recoveries
Endowment distributions to be expended
Private gifts to be expended
Sales, investment & other to be expended
Auxiliary enterprises
Total Sources of Available Funds
%
Change
2004-05
Approved
Budget
2003-04
Actual
Results
$20,113
6,693
14,326
379
2,926
3,900
11,261
59,598
7.8%
5.0%
5.0%
0.6%
4.7%
13.6%
7.5%
6.1%
$256,426
128,894
292,412
66,247
65,132
30,938
150,260
990,309
$240,059
121,310
255,867
53,119
69,054
33,582
149,537
922,528
237,747
270,123
100,535
20,296
58,178
48,096
97,381
7,713
13,309
2,853
1,529
5,540
4,589
3,638
3.2%
4.9%
2.8%
7.5%
9.5%
9.5%
3.7%
237,554
268,006
102,251
18,947
61,160
48,385
92,488
208,756
233,248
109,655
19,460
52,769
49,981
89,260
32,531
32,687
17,452
47,256
29,077
31,388
16,649
44,051
3,454
1,299
803
3,205
11.9%
4.1%
4.8%
7.3%
28,867
32,803
16,870
42,190
27,591
31,167
14,536
44,932
1,001,453
953,521
47,932
5.0%
949,521
881,355
31,297
7,433
589
27,462
-
3,835
7,433
589
14.0%
-
28,834
5,800
5,457
28,750
-
1,040,772
980,983
59,789
6.1%
989,612
910,105
403
594
(191)
(32.2%)
$697
$12,423
2005-06
Proposed
Budget
2004-05
Projected
Results
Change
$276,654
139,559
299,666
66,684
65,548
32,583
160,481
1,041,175
$256,541
132,866
285,340
66,305
62,622
28,683
149,220
981,577
245,460
283,432
103,388
21,825
63,718
52,685
101,019
Uses of Available Funds
Direct instruction
Research and public service
Library, information tech., and academic administration
Student services
General administration
Operation and maintenance of physical plant
Scholarships, fellowships and other graduate support
Athletics
Bookstore
Housing and conference services
Other auxiliary operations
Total operating expenses
Transfers to reserves for renewal, replacement, and debt
Reserve for salary increases
Reserve for base operating needs and contingencies
Total Uses of Available Funds
Surplus
As shown on the following page, reimbursement of direct and indirect costs of grants and
contracts (28.8 percent) provides the greatest proportion of the operating budget, followed by
tuition and fees (26.6 percent) and auxiliary enterprises (15.4 percent). The state general fund
13
appropriation will contribute 13.4 percent, while gifts and endowment distributions will provide
12.7 percent, and the remaining 3.1 percent is generated from investment income and other
miscellaneous revenues.
2005-06
2004-05
Private
12.7%
State GF
13.4%
State GF
13.5%
Other
3.1%
Auxiliaries
15.4%
Private
13.1%
Other
2.9%
Aux. Ent.
15.2%
Grants &
Contracts
29.1%
Grants &
Contracts
28.8%
Tuition & Fees
26.2%
Tuition & Fees
26.6%
HISTORICAL GROWTH IN THE ACADEMIC DIVISION BUDGET
The Academic Division budget has consistently increased over the years, even through
the years of capped and reduced tuition and general fund budget reductions. The following chart
shows the ten-year trend for the funding sources of the Academic Division.
10 yr.
Inc.
(millions)
$1,000
Avg.
Inc.
Law, Darden,
McIntire Grad T&F 163%
16%
Auxiliaries
139%
14%
Grants/Contracts
110%
11%
Gifts/Endowment
90%
9%
Other Tuition/Fees
82%
8%
Investments/Other
78%
8%
$800
$600
$400
$200
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
$0
State General Fund
20%
2%
Total
87%
9%
The budget has increased $485 million or about 87 percent over the past ten years, for an
annual growth rate just under 9 percent. However, the significant growth has been concentrated
in areas other than in core instructional programs. The operating budget for core instructional
and support programs (the state general fund appropriation and tuition revenues other than those
14
generated by the Law School, the Darden School, and the McIntire graduate programs) has
increased by $120.7 million or 51 percent over the past ten years, for an annual increase just over
5 percent. The largest percentage increase (163 percent) has been in the tuition and fees from the
Law School, the Darden School, and the McIntire graduate programs. These programs have not
been subject to tuition roll-back, freezes and caps imposed by the governors and General
Assembly during the period. Alternatively, they have been encouraged to price their programs
closer to market, and, through financial self-sufficiency and revenue sharing agreements, their
educational programs have directly benefited. $327 million, or 67 percent of the growth over the
past ten years, has been in three areas:
•
Grants, contracts, and indirect cost recoveries have increased $157 million or 110
percent during the period. These revenues reimburse the direct and indirect costs of
sponsored research, and are not intended for core instructional activities.
•
Auxiliary enterprise revenues have increased over $93 million or 139 percent over the
period. These revenues are used for the direct and indirect cost of athletics,
bookstores, housing, dining, and other activities which support faculty, staff, and
students, but not core educational activities.
•
Gift, endowment distributions, investment income and other revenues have increased
nearly $77 million or 88 percent over the ten-year period. These revenues, which
have increased due to the exemplary performance of the endowment and other
investment decisions, are generally restricted by the donor and are used to
supplement rather than fund base operating needs.
FUNDING SOURCES
State General Fund Appropriation
State general funds are tax revenues appropriated by the General Assembly for the use of
the institution. The state general fund appropriation is made up of an appropriation for
educational and general programs, a special appropriation for specific programs, and an
appropriation for student financial aid.
The 2005-06 budget for the general fund appropriation will increase $6.7 million or 5.0
percent based upon the 2005-06 Appropriations Act. This increase includes $2.7 million for the
general fund portion of the approved November 2005 increases, $3.9 million for base adequacy
support, the annualization of November 2004 salary increases, $1.4 million for the higher
employer cost of healthcare premiums, and additional undergraduate and graduate financial aid.
It is expected that the Eminent Scholar matching program will remain at $2.9 million, for
a match of about 19¢ on the dollar, while the University adds over half a million dollars or
another 3¢ per dollar from private resources.
The following chart shows the University’s standing using the 2004-05 state
15
appropriation for each school:
School
University of North Carolina - Chapel Hill
University of Michigan - Ann Arbor
University of Maryland
University of Virginia
2004-05 GF per
In-state Student
$19,941
$16,608
$14,275
$9,393
It is anticipated that the 2005-06 general fund appropriation per in-state student for the
University will approximate $10,100.
Non-general Funds
Non-general funds are resources generated by the University such as tuition, indirect cost
recoveries, payments from federal agencies and other entities for research, student and user fees,
or gifts and endowment distributions. With the exception of gifts and endowments, non-general
funds are appropriated by the General Assembly.
Tuition and Fees
The 2005-06 budget reflects the revenue to be generated by the tuition increases
previously approved by the Board of Visitors as shown in the following chart:
TUITION AND E&G FEES
Undergraduate
Graduate
Darden
Law
Medicine, average increase
In-State
Out-of-State
% Increase % Increase
9.0%
6.0%
6.3%
0.5%
6.9%
5.9%
8.5%
7.0%
8.3%
5.6%
Tuition and fee revenues are projected to increase $20.1 million or 7.8 percent over the
revised 2004-05 budget to $276.7 million. The 2005-06 tuition and fees budget was developed
using approved enrollment projections, as well as recent enrollment trends. The budget assumes
that the current in-state versus out-of-state ratios will remain unchanged.
The University’s approved enrollment growth plan shows that Fall 2005 on-grounds
enrollment will total 20,132 students. Of the expected 13,200 undergraduate students, 69
percent will be Virginians. The off-grounds enrollment projection for the fall is 3,350 students,
of which 91 percent will be Virginians. It is projected that the first year class will include 3,100
students, while 514 students will transfer to the University.
Approximately $12.1 million of the total tuition increase is allocable to increases in
undergraduate, graduate, Medical School, Summer Session and the School of Continuing and
16
Professional Studies tuition rates, including the addition of the new January Term.
Approximately $2.7 million of the incremental tuition revenue is allocable to self-supporting
degree programs, including Law, Darden, McIntire graduate programs, and an Engineering
executive-style graduate program.
Grants, Contracts, and Indirect Cost Recoveries
Based upon the historical activity and the value of new sponsored program awards during
the period July 2004 through March 2005, direct expenditures reimbursed from grants and
contracts are expected to increase by 5 percent over the 2004-05 revised budget. It is estimated
that indirect cost recoveries will also increase by 5 percent in 2005-06.
Total grants, contracts, and indirect cost recoveries are budgeted at $299.7 million in
2005-06. Indirect cost recoveries will comprise $62.1 million of that total, with direct costs
funded from grants and contracts budgeted at $237.6 million.
Endowment Income and Gifts
Approximately $82.2 million will be distributed from the pooled endowment fund in
2005-06 to Academic Division units. Based upon historical levels of expenditure and the
changes in the per share distribution amounts, it is projected that an estimated $66.7 million will
be expended in 2005-06 for educational and general programs and student financial aid. The
entire amount distributed will not be expended due to donor restrictions, unfilled professorships,
or accumulations for future commitments. Operating expenses for educational and general
programs and student financial aid funded from gifts are expected to increase just slightly to
$65.5 million from the 2004-05 forecast of $62.6 million, as estimated by the departments
receiving the gifts. Private support for athletics operations, $2.4 million in 2005-06, is included
in the athletics operating revenues.
Other Sources of Funds
Other sources including current fund investments and sales and services of educational
departments will contribute $32 million. Discussion of auxiliary revenues begins on page 21.
OPERATING BUDGET BY EXPENDITURE CATEGORY
Approximately 61.1 percent of the Academic Division’s total operating budget will be
expended on personal services as shown on the following page. When financial aid and
auxiliaries are excluded, approximately 75.3 percent of educational expenditures are for faculty,
staff, and GTA/GRA salaries, wages, and fringe benefits.
The University has reserved $6.7 million to fund the state’s authorized salary increase for
all employees, plus a $725,000 reserve to increase the competitiveness of faculty compensation
with a recommended 0.5 percent supplemental increase for teaching and research faculty.
17
2005-06 By Expenditure Category
The University will incur increased benefit
costs as the employer share of employee health
insurance premiums has increased by an average of
22 percent. While the University will receive a
portion of these increased costs from state general
funds, the majority of the cost will be covered by
tuition.
Other
42.9%
Faculty
Comp.
32.3%
Wages
3.3%
GTA/GRA
2.1%
Staff
Comp.
19.3%
OPERATING BUDGET BY ACTIVITY
The following pie charts show the percentage of the total operating budget dedicated to
each major activity:
2005-06
Financial Aid
9.7%
2004-05
Financial
Aid
9.9%
Auxiliaries
15.4%
Other
13.8%
Instruction
24.0%
Academic
Support
9.9%
Auxiliaries
15.2%
Other 12.9%
Instruction
24.2%
Academic
Support
10.2%
Research &
Public Serv.
27.2%
Research &
Public Serv.
27.6%
Educational and General Budget
Educational and general (E&G) is a term used to describe operations that are related
directly to the University's educational objectives, including the programs of instruction,
research, public service, academic support, student services, institutional support, and
maintenance and operation of physical plant.
Direct Instruction
Instruction includes the teaching faculty, support staff, instructional equipment, and
operating costs directly related to instruction, as well as departmental research. The increase in
the 2005-06 instructional budget is $7.7 million or 3.2 percent over the 2004-05 forecast. This
increase includes a $2.3 million allocation of base operating funds to the College of Arts &
Sciences to recognize the enrollment growth absorbed by the College over the past decade and a
$4 million allocation of the Pratt funds for departmental research in the implementation of the
Decade Plan is also reflected in the 2005-06 budget. In addition to the increased cost of fringe
benefits, funds are allocated to meet two critical goals of the Commonwealth - $283,000 to
expand the undergraduate nursing program and $82,650 to expand the teacher education
program. The previously mentioned allocation of $125,000 for the Excellence in Diversity
18
Fellows Program is also included in this category, as well as $67,000 for faculty support in
Urban and Environmental Planning in the Architecture School.
Research and Public Service
This category includes both University-funded research and public service and sponsored
research and public service. University-funded research and public service includes support for
research faculty, as well as the Center for Public Service, the Center for Advanced Studies, the
Center for Politics, Fishery Resource grants, the State Climatologist, the Institute of Nuclear and
Particle Physics, the Virginia Center for Diabetes Professional Education, the Virginia
Foundation for the Humanities, the Institute of Government, the Women’s Center, the Virginia
Film Festival, and non-credit course offerings. The increase in the 2005-06 research and public
service budget is $13.3 million or 4.9 percent over the 2004-05 forecast. Since the majority (81
percent) of sponsored research falls into this category, this increase is primarily related to the
expected 5.0 percent increase in sponsored research activity, as well as fringe benefit cost
increases. Additionally, the 2005 General Assembly has provided $100,000 additional on-going
general fund support for the Center for Politics, as well as $350,000 for the Virginia Foundation
for the Humanities to conduct the Virginia Encyclopedia Project.
Academic Support
The academic support program encompasses the libraries, academic computing, and
academic administration. The budget for 2005-06 is projected to increase by 2.8 percent or $2.9
million. In addition to fringe benefit increases, other academic support increases are related to
the University’s addenda allocations, including $750,000 to Alderman Library, $68,000 for an
Associate Director for Study Abroad, and $40,000 for the increased cost of planning for disaster
recovery services in the technology arena.
Student Services
The student services program includes those activities whose primary purpose is to
contribute to the students' emotional and physical well-being and to their intellectual, cultural,
and social development outside of the classroom. The student services budget for 2005-06 is
projected to increase by 7.5 percent to $21.8 million. The increases are related to the ramping up
of the Student System Project ($3 million is set aside as a place-holder for 2005-06 pending
development of the project budget), fringe benefit increases, and the funding of several addenda
items, including $263,000 for the Office of Graduate Student Diversity, $79,000 for the support
of residence staff and area housing coordinators, $77,000 for first-year residential educational
programs and direction, and $35,000 for the Office of African-American Affairs program
support. Additionally, a new compliance coordinator for academic eligibility related to athletics,
will be added and will report through the Registrar’s Office and the Provost Office.
General Administrative Activities
This category includes the executive, financial, administrative, logistical, and fundraising
activities of the University. The general administration budget is projected to increase by $5.5
million or 9.5 percent in 2005-06. This increase includes adjustments for fringe benefit increases
19
and the funding of a new Diversity Procurement Programs Director, and increased operating
support for Carr’s Hill. New funding has also been allocated in support of capital campaign
needs and to implement the recommendations of the Alumni Relations Task Force. This funding
has been allocated on a temporary basis, with permanent funding reliant upon an increase in
unrestricted private philanthropy to support these services.
Operation and Maintenance of Plant
The operation and maintenance program category includes all expenditures for operating
and maintaining facilities, leasing space, and police and security, net of amounts charged to
auxiliary enterprises and the Medical Center. The operations and maintenance budget is
projected to increase $4.6 million or 9.5 percent in 2005-06 compared to the 2004-05 revised
forecast. This activity includes new funding related to fringe benefit increases, $1.5 million to
address maintenance deficiencies, $1.5 million to fund expected utility increases, $98,000 for
University Architect staffing, $92,000 for new facilities and increased leasing costs, $75,000 for
vivarium maintenance, and $66,000 for increased air services costs. Additionally the University
will pay $115,000 to the Rivanna Solid Waste Authority as its share of the clean-up costs at the
Ivy Landfill.
STUDENT FINANCIAL AID
Student financial aid includes student scholarships, fellowships and other forms of
student assistance exclusive of student loans, student employment, and service scholarships
where service is required of the students receiving the scholarships. The student financial
assistance budget also does not include aid provided directly to students or their families by third
parties. The student financial aid budget promotes student accessibility through scholarships and
fellowships.
Financial aid awards to undergraduate students are based on standard calculations of the
student's financial need. In the continued implementation of Access UVa, in 2005-06, the
University will offer 100 percent of demonstrated need to all undergraduates and will eliminate
loans and work study for first and second year students whose families are at or below 200
percent of poverty level ($27,600 in 2004). Additionally, first-year students and transfers from
the Virginia Community College System entering the University in the fall of 2005 will be
guaranteed that their loan burden due to demonstrated financial need will not exceed $18,000
after four years of attendance.
Student financial assistance programs are supported from state general funds, tuition,
endowment income, gifts, and federal sources. The 2005-06 budget for student financial
assistance is $101 million, an increase of approximately 3.7 percent over the 2004-05 revised
budget of $97.4 million.
Nearly $36 million or 14 percent of tuition revenue from degree programs is allocated to
undergraduate and graduate financial aid. The University is committed to working with schools
to improve the flexibility and attractiveness of the University’s graduate support packages in
20
order to become more competitive in attracting top graduate students. The University reallocated tuition revenues to support financial aid to students through the following programs:
•
$11.9 million is allocated to undergraduate aid, allowing the University to offer 100
percent of demonstrated need to all undergraduates and to eliminate loans and workstudy for first year, second year, and new transfers from the Virginia Community
College System whose family income is at or below 200 percent of poverty level.
Students entering in the fall will also be a part of the third phase of the plan to limit
total need-based loans; however, since their need-based loans will likely not meet the
cap until their third or fourth year at the University, we will not see a significant
impact with the associated financial aid costs until that time.
•
$6.8 million is allocated to the out-of-state graduate student tuition adjustment
program. To qualify for the program, an out-of-state graduate student must be
employed in a significant academic capacity and earn a contract rate of at least
$5,000 during the fiscal year. The maximum award is limited to the differential
between in-state and out-of-state tuition rates.
•
$7.7 million is allocated to enhance the support of graduate teaching assistants, as the
University continues to provide in-state tuition, required fees, and a healthcare
voucher to eligible graduate teaching assistants. The increase reflects the significant
increase in graduate in-state tuition, as well as a 14 percent increase in the single
coverage healthcare premium for qualifying graduate students.
•
$9.6 million is allocated to in-state and out-of-state graduate fellowships, including
financial aid programs at Law and Darden.
The 2005-06 financial aid budget also includes funding from institutional unrestricted
private resources for: $2.1 million to meet Access UVa requirements, $1.4 million for continued
funding of an undergraduate merit scholarship program established in 1985-86, and $788,000 for
the President's Fellowships for graduate students.
AUXILIARY ENTERPRISES
An auxiliary enterprise is an entity that exists to furnish goods or services to students,
faculty or staff and charges a fee that is directly related, although not necessarily equal, to the
cost of the service. Auxiliary enterprises are expected to be self-supporting, with revenues fully
supporting the operating and capital expenditures of the enterprise. Emphasis is placed on
providing safe, effective, and efficient enterprises that are compatible with and facilitate the
accomplishment of the University's primary mission. Additionally, the Commonwealth requires
that auxiliaries be charged an overhead rate to support the general and administrative services
provided by the educational and general operations. In 2005-06, the auxiliaries will be charged
7.53 percent of their operating expenditures – a total of $4.9 million will be recovered by
educational and general activities. In return, auxiliaries are credited with interest earned on their
cash balances.
21
Revenue projections were developed using Board-approved enrollment projections,
housing and dining rates and mandatory non-E&G fees. Increases in student fees support
operating cost increases in University Transit, Recreational Facilities, Athletics, Student Health,
and Newcomb Hall.
Revenues from all auxiliary enterprises are estimated to total $160.5 million in 2005-06,
an increase of 7.5 percent over the 2004-05 revised budget. Auxiliary enterprise expenditures,
including transfers to reserves, are projected to increase approximately $160.1 million. In the
development of the auxiliary enterprise budgets for 2005-06, the University has continued to
place emphasis on the maintenance of prudent reserves for the rational and systematic renewal
and replacement of equipment and facilities. Detailed budget information, including projected
expenditures from reserves, for the major auxiliary enterprise units is included in the following
sections.
Athletics
Athletics revenues are increasing by 10.8 percent to $35.0 million in 2005-06. This
increase reflects higher football revenues from an aggressive marketing plan, athletic student fee
increases, greater Atlantic Coast Conference distributions, and continued success in generating
private gifts for operations. The 2005-06 expenditures and transfers to reserves are expected to
be $35.0 million, exclusive of $9.5 million in student athlete scholarships, an increase of $3.4
million over the 2004-05 revised budget. The proposed level of expenditure activity projects
athletics to break-even for 2005-06. Increases in available funds are directed towards
improvements in the program support areas of facilities, human resources, sports medicine,
contractual obligations in Football and Men’s and Women’s Basketball, three new positions to
address media relations, academic affairs and lifestyles, and faculty salaries resulting from the
conversion of part-time coaches to full-time in Olympic Sports. While philanthropy has not
increased to the level originally projected due to a concentration of fundraising efforts on the
new arena project, private gifts now support the entire Academic Affairs operating budget as
well as partially fund each of the Olympic Sports operating budgets. Increased transfers to a
maintenance reserve fund have been delayed as other priorities have proven more critical.
As shown on the schedule on the following page, Athletics plans to transfer $2.4 million
to its renovation and repair (R&R) and expansion reserves in 2005-06. With $2.3 million in
planned expenditures, Athletics will have a remaining $1.0 million reserve, primarily earmarked
as a reserve for continuing debt service for Scott Stadium Expansion and the start of a reserve for
the Arena.
ATHLETIC RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$126,000
757,200
650,000
$233,200
Expansion
Reserve
$794,900
1,681,500
1,679,000
$797,400
Total
$920,900
2,438,700
2,329,000
$1,030,600
22
In addition to debt service requirements totaling $1.3 million, Athletics will make the
following expenditures from its reserves in 2005-06: the annual transfer of $400,000 to the
Arena project, $300,000 for University Hall Locker Rooms, $200,000 for University Hall
repairs, and $150,000 for the Boathouse and Dock Replacement.
Bookstore
Bookstore revenues are increasing by 2.7 percent to $34.2 million from the 2004-05
budget, while Bookstore expenditures and transfers are projected to increase 3.1 percent to $34.1
million. In 2005-06, the bookstore expects a small surplus of $42,700. The Bookstore will make
its annual transfer for required debt service of $657,000 as well as its annual transfers of
$250,000 to the Bookstore Endowment for Excellence and $34,000 to Student Council.
As shown on the below schedule, the Bookstore will transfer, on behalf of the Bookstore
and Cavalier Computers, $481,000 to its reserves. With $205,000 in planned expenditures, the
Bookstore will have a remaining $3.5 million reserve, primarily earmarked for expansion of the
central grounds bookstore.
BOOKSTORE RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$2,375,400
239,000
205,000
$2,409,400
Expansion
Reserve
$823,800
242,000
$1,065,800
Total
$3,199,200
481,000
205,000
$3,475,200
In 2005-06, the Bookstore expects to expend: $75,000 on equipment and computer
system purchases and $130,000 on the Central Grounds Bookstore and Cavalier Computer
facility repairs and improvements.
Housing
The Housing Division includes student housing, faculty/staff housing, and conference
services. Revenues are increasing by 6.7 percent to $29.0 million, primarily related to the
housing rate increases (4.0 percent plus $200 to the Housing Improvement Fund) approved in
February 2005. Expenditures and transfers are increasing to $28.9 million, related to higher
operating costs, including compensation, volatility in utility prices, and increased preventive
maintenance. Housing expects a small surplus of $116,900.
As shown in the schedule below, Housing plans to transfer $8.9 million to its reserves in
2005-06. The $4.0 million transfer to the expansion reserve is funded from the Housing
Improvement Fee now assessed to students residing in University housing. With $5.3 million in
planned expenditures, Housing will have remaining an $11.8 million reserve. Most of this
reserve will be committed to the Alderman Road Dormitory Replacement project, which is
scheduled to begin in 2007-08 with the construction of a new dormitory to use as swing space
for the remainder of the project.
23
HOUSING RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair Expansion
Reserve
Reserve
Total
$ 1,026,000 $ 7,205,000 $ 8,231,000
4,934,000
3,996,000
8,930,000
4,924,000
400,000
5,324,000
$ 1,036,000 $ 10,801,000 $ 11,837,000
In 2005-06, the Housing reserves support both Student Housing and Faculty and Staff
Housing. Planned expenditures from the reserves include: $3.0 million to address deficiencies
identified in a facilities audit, $400,000 for maintenance in the Alderman Road dormitories,
$400,000 for planning the Alderman Road Dormitory Replacement project, and $1.5 million for
numerous other repair and renovation projects.
Parking and Transportation
Parking and Transportation (P&T) revenues are increasing by 7.1 percent to $14.0
million in 2005-06. In addition to the approved student fee increase, this reflects a monthly
increase, ranging from $2 to $6, in permit parking rates. P&T expenditures and transfers to
reserves are increasing by 7.2 percent to $14.0 million, resulting from higher operating costs,
including compensation. Included in the operating expenditures is the required annual debt
service associated with parking structures totaling $1.4 million. P&T projects to break-even in
2005-06.
As shown on the schedule below, P&T plans to transfer $1.6 million to its reserves in
2005-06. With $2.2 million in planned expenditures, P&T will have a remaining $3.2 million
reserve, primarily earmarked for future replacement of buses, lot and garage repair and
maintenance and parking projects, such as the South Lawn Project.
P&T RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$1,574,600
1,249,000
1,144,000
$1,679,600
Expansion
Reserve
$ 2,243,000
360,000
1,100,000
$1,503,000
Total
$3,817,600
1,609,000
2,244,000
$3,182,600
2005-06 planned expenditures from the reserves include: $1,000,000 for the Carr’s Hill
Precinct Parking, $350,000 for bus purchases, $203,000 for storm water management, $175,000
for parking lot repairs, and $516,000 for facility maintenance, equipment, lighting and other
needs.
Voice Communications
Voice Communications provides a broad range of modern computing and
communications services ranging from the support of high performance research computing to
basic telecommunication services including telephone, data, voicemail, and cable television
24
services. Revenues are increasing by 11 percent to $13.2 million in 2005-06. Service rates and
the number of people served will remain relatively unchanged for 2005-06. With an offsetting
increase in expenditures and transfers planned for 2005-06, Voice Communications expects to
break even.
As shown on the schedule below, Voice Communications plans to transfer $1.9 million to
its reserve in 2005-06. With $1.3 million in planned expenditures, Voice Communications will
have a remaining $10.1 million reserve. This balance is accumulating for the next major
telephone system replacement project and for infrastructure projects required for future
deployment of the next generation of technology services.
VOICE COMMUNICATIONS
RESERVE
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Expansion
Reserve
$9,553,000
1,913,000
1,321,600
$10,144,400
2005-06 planned expenditures from the reserve include: $421,600 for 800 MGhz
infrastructure (in a joint project with the City of Charlottesville and County of Albemarle),
$350,000 for McKim renovations, $150,000 for a tele-management system, $100,000 for switch
room generators and air conditioning, $100,000 for phone-mail, and $200,000 for other growth
needs.
Student Health
Student Health revenues are increasing by 8.8 percent to $7.4 million in 2005-06, which
is primarily related to the approved student fee increase. Student Health operating expenditures
and transfers to reserves are increasing by 7.6 percent to $7.4 million, related to higher operating
costs, including compensation, medical and pharmacy supplies, utilities and service providers.
Student Health expects to break-even in 2005-06.
As shown on the following page, Student Health will transfer $105,000 to its R&R
reserve. With $121,500 in planned expenditures, Student Health will have a remaining $620,500
reserve, primarily earmarked for future facility needs and major equipment replacement.
STUDENT HEALTH RESERVE
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$637,000
105,000
121,500
$620,500
2005-06 planned expenditures from the reserves include major equipment purchases,
25
facility roof repairs, and renovations required for compliance with the American Disabilities Act.
Intramural/Recreation Sports
Intramural/recreation sports revenues and expenditures will increase to $5.4 million each
in 2005-06. Revenues are increasing by 3.7 percent, primarily related to fee increases.
Memberships for faculty and staff are increasing by $10 for 2005-06 and the full-time student
fee, as approved by the Board in April 2005, is increasing $9 or 4.4 percent. Expenditures are
increasing 3.8 percent as a result of higher operating costs, including compensation, operations
and maintenance cost increases due to volatility in utility prices.
As shown on the schedule below, Intramurals expects to transfer $2.5 million to its
reserves in 2005-06. With $2.6 million in planned expenditures, Intramurals will have a
remaining $3.4 million reserve, primarily earmarked for future expenditures related to North
Grounds Recreation Center renovations and air conditioning, renovations to the Slaughter
Recreation Center, field development and maintenance and continued debt service.
INTRAMURAL RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$2,822,000
902,500
1,091,500
$2,633,000
Expansion
Reserve
$ 672,600
1,627,300
1,558,000
$741,900
Total
$3,494,600
2,529,800
2,649,500
$3,374,900
2005-06 planned expenditures from the reserves include: $1.6 million for debt service
and $1.0 million for renovations to the North Grounds and Slaughter Recreation Centers and
Memorial Gym for such improvements as air conditioning, flooring replacement, security
systems and various field improvements.
Printing and Copying
Printing and Copying (P&C) revenues are increasing by 9.6 percent to $5.2 million in
2005-06. P&C anticipates higher sales volume due to the expansion of a major educational
school program, higher sales of web-based and on-demand forms, and the completion of the
second phase of implementing new equipment to take advantage of digital technology. P&C
expenditures and transfers to reserves are increasing by 9.6 percent to $5.2 million, related to
higher operating costs, including compensation and supplies needed to support the higher sales
volume. P&C expects to break-even in 2005-06.
As shown on the below schedule, P&C will transfer $522,000 to its R&R reserve. With
$799,000 in planned reserve expenditures, P&C will have a remaining $2.7 million reserve
balance, primarily earmarked for future investment in new printing and copying technology and
replacement of production equipment.
26
P&C RESERVE
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$2,994,000
522,000
799,000
$2,717,000
2005-06 planned expenditures from the reserves are primarily for equipment and system
purchases.
Newcomb Hall
Newcomb Hall and University Programming Council revenues are increasing 3.9 percent
to $4.5 million in 2005-06, due to a slight increase in the approved student fee. Newcomb
expenditures and transfers to reserves are projecting an increase of 8.1 percent to $4.5 million,
related to increased transfers. Newcomb expects to break-even in 2005-06.
As shown on the schedule below, Newcomb will transfer $1.4 million to its reserves in
2005-06. With $1.0 million in planned expenditures, Newcomb will have a remaining $2.5
million reserve, primarily earmarked for future planning of a new student center.
NEWCOMB HALL RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$1,451,900
181,300
80,000
$1,553,200
Expansion
Reserve
$ 640,300
1,191,000
857,000
$974,300
Total
$2,092,200
1,372,300
937,000
$2,527,500
2005-06 planned expenditures include $857,000 related to the Newcomb Expansion debt
and other miscellaneous facility repairs expected.
Dining
Under the dining services contract with ARAMARK Corporation, net revenues received
by the University in 2005-06 are expected to total $3.8 million, an increase of 5.9 percent. Of
this amount, $3.6 million is from total board and retail sales and the remaining revenues of
$200,000 are generated from interest earnings and net vending and concession commissions.
Rates for contract meal plans were approved by the Board of Visitors in April and were
increased an average of 4 percent to offset expected increases in food and labor costs. Dining
expenditures and transfers also include the debt service on the New Observatory Hill Dining
facility, bringing the annual required debt service to $1.1 million. After 2005-06 expenses and
transfers of $3.5 million, Dining projects a surplus of $277,300.
27
As shown on the schedule below, Dining plans to transfer $1.9 million to its R&R and
expansion reserves in 2005-06. With $1.2 million in planned expenditures, Dining will have a
remaining $5.7 million reserve, primarily earmarked for a South Lawn Dining Facility, a
Residential Dining Facility, and other future facility maintenance needs.
DINING RESERVES
Projected Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
Ren. & Repair
Reserve
$2,503,000
1,400,000
1,152,000
$2,751,000
Expansion
Reserve
$ 2,504,000
500,000
-0$3,004,000
Total
$5,007,000
1,900,000
1,152,000
$5,755,000
2005-06 planned expenditures of $1.2 million from the reserves are earmarked for facility
repairs and improvements.
Other
There are increases of $1.3 million in revenues in other auxiliary units, with $1.3 million
in offsetting increases in expenditures. Transfers of $828,300 will be made to the various
reserves as shown on the schedule below. With planned expenditures of $231,100, the ending
balances are projected to be $3.8 million.
OTHER RESERVES
Beginning Balance, 7/1/05
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/06
JAG
R&R
$2,508,700
453,600
88,100
$2,874,200
SCPS
R&R
$188,200
152,500
50,000
$290,700
Other
R&R
$477,800
222,200
93,000
$607,000
Total
$3,174,700
828,300
231,100
$3,771,900
2005-06 planned expenditures from the reserves include: $88,100 for the Judge Advocate
General’s School, $50,000 for SCPS’s Satellite Uplink, and $93,000 for other needs in Mail
Services, the Child Development Center, Business Operations and Cavalier Advantage.
STAFFING
As shown on the following page, the Academic Division projects a 2.8 percent increase of
217 FTE positions to 8,074 in 2005-06. Sponsored program positions, projected to increase 1.6
percent over the 2004-05 revised budget to 1,922, are supported by growth in sponsored
programs. If sponsored program awards do not support the projected number of FTEs, the
positions will not be created or continued. Positions funded from private resources are expected
to increase by 6.4 percent over the 2004-05 revised budget to 899 FTEs. The 2005-06 budget
reflects a net increase of 28 FTE positions in auxiliary enterprises over the 2004-05 revised
budget.
28
2004-05 Revised
2005-06
Change
% Change
State
4,338.95
4,449.66
110.71
2.6%
Grants and
Contracts
1,897.08
1,922.12
25.04
1.3%
Private
Resources
846.17
899.95
53.78
6.4%
Auxiliaries
774.57
802.36
27.79
3.6%
Total
7,856.77
8,074.09
217.32
2.8%
Of the 8,074 positions budgeted for 2005-06, 2,446 positions are involved directly in the
primary programs of instruction, departmental research, and public service. Another 1,922
positions are funded from grants, contracts, and related indirect cost recoveries.
29
30
THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE
2005-2006 BUDGET SUMMARY
The 2005-06 operating budget for the University of Virginia’s College at Wise (Wise) is
projected to total $26.6 million, an increase of $1.6 million or 6.3 percent compared to the 200405 revised budget.
UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE
OPERATING FINANCIAL PLAN
(dollars in thousands)
2005-06
Proposed
Budget
2004-05
Projected
Results
Change
$12,164
$10,962
$1,202
11.0%
$ 10,769
298
5,205
(275)
1,583
650
457
160
6,312
26,554
298
4,958
(275)
1,575
790
417
160
6,106
24,991
247
8
(140)
40
206
1,563
0.0%
5.0%
0.0%
0.5%
(17.7%)
9.6%
0.0%
3.4%
6.3%
200
4,711
(275)
804
5,501
21,710
Uses of Available Funds
Direct instruction
Research and public service
Library, technology, and academic administration
Student services
General administration
Operation and maintenance of physical plant
Scholarships and fellowships
Auxiliary enterprises
Total Uses of Available Funds
7,246
1,508
3,444
1,683
2,639
1,775
1,947
6,312
26,554
6,525
1,500
3,419
1,533
2,495
1,493
1,920
6,106
24,991
721
8
25
150
144
282
27
206
1,563
11.0%
0.5%
0.7%
9.8%
5.8%
18.9%
1.4%
3.4%
6.3%
6,288
1,019
2,744
1,391
2,188
1,479
1,100
5,501
21,710
Surplus
$
$
$
Sources of Available Funds
State general fund appropriation
State general fund appropriation for SW Va.
Public Education Consortium
Tuition and fees
Tuition and fees - tuition remission
Sponsored research direct costs
Endowment distributions to be expended
Private gifts to be expended
Sales, investment and other to be expended
Auxiliary enterprises, including gifts for Athletics
Total Sources of Available Funds
-
-
-
%
Change
0.0%
2004-05
Approved
Budget
$
-
FUNDING SOURCES OF THE EDUCATIONAL AND GENERAL PROGRAMS
State General Fund Appropriation
The general fund revenue appropriation for 2005-06 is projected to total $12.2 million, an
increase of $1.2 million or 10.7 percent over the revised 2004-05 budget. This increase is
mainly related to increases in base operating support and financial aid.
31
Non-general Funds
Non-general fund educational and general (E&G) revenue generated by Wise, including
tuition and fees, grants, contracts and indirect cost recoveries, gifts, distributions from
endowments and other sales and services income is projected to total $7.8 million for 2005-06.
Tuition and Fees
In 2005-06, net revenue from tuition and fees is projected to total $4.9 million compared
to $4.7 million generated in 2004-05. Tuition and fees include revenue from the technology fee,
application for admission fees, and late registration fees. Non-resident students are required to
pay the full cost of education. To be in compliance with this state policy, the non-resident
tuition rate will increase by 6.6 percent in 2005-06. The technology fee will increase from $52
to $57.
Revenue projections for tuition and fees are based upon previous enrollment and future
enrollment growth. For 2004-05, Wise’s rate of growth surpassed that projected by the State
Council of Higher Education for Virginia (SCHEV). Actual FTE enrollment for the fall 2004
semester totaled 1,561, an increase of 249 or 18.9 percent over the SCHEV projection of 1,312.
It is anticipated that the FTE enrollment for fall 2005 will total 1,607, an increase of 2.9 percent
over the fall 2004 semester. Wise is currently submitting an enrollment projection analysis
report to SCHEV beginning with fall 2005 enrollment and culminating in the fall 2010
enrollment. This report will more accurately reflect realistic and achievable enrollment growth.
Freshmen enrollment is projected to increase by 3.0 percent and transfer enrollment is projected
to increase by 12.0 percent. Out-of-state applications have increased by 82 percent from the
previous year, reflective of the reduced tuition for students from Kentucky and Tennessee.
Grants, Contracts and Indirect Cost Recoveries
Sponsored research direct costs and indirect cost recoveries are expected to remain
relatively flat at $1.6 million in 2005-06. Indirect cost recoveries amount to $100,000 of the
above total, an increase of 8.7 percent from the previous year.
Endowment Income and Gifts
For 2005-06, endowment distributions projected for educational and general programs
and student financial aid total $650,000, a decrease of $140,000 or 17.7 percent from 2004-05.
The 50th Anniversary Celebration contributed to the increase in expenditures over the past two
fiscal years. The final celebratory event will be held in April of this fiscal year. Expenditures
from private gifts for educational and general programs and student financial aid are projected to
total $457,000 in 2005-06, or a 10.0 percent increase from 2004-05. Private support for
athletics, $247,000 in 2005-06, is included with athletics revenues.
Other Sources of Funds
Revenue from local sales and services and local other activities is expected to remain
unchanged from 2004-05.
32
OPERATING BUDGET BY ACTIVITY
Direct Instruction
This program includes teaching faculty, support staff, instructional equipment and
operating costs associated directly with instruction. The operating budget for instruction is
projected to increase by $721,000 or 11.0 percent in 2005-06. Wise is guided by a legacy of
teaching and scholarly excellence and by a dedication to quality in both the arts and sciences and
in professional programs. To meet the Southern Association of Colleges and Schools (SACS)
requirements, $223,000 of the increase is dedicated to hiring two new faculty in accounting and
physical education. In 2004-05, the University provided one-time funding for teaching and
research faculty salaries in the amount of $100,000 to make the salary base more equitable.
Wise is committed to continuing the funding of these increases. To insure that all faculty will
have the opportunity for professional development, $50,000 is allocated to a new faculty travel
program. A 5.0 percent increase totaling $39,000 for other than personal services is allocated to
academic departments, who have operated with no increase in their other than personal services
(OTPS) budgets over the past three fiscal years.
Research and Public Service
This category includes research and public service funded from the state and a federal
grant. Funding for the Southwest Virginia Public Education Consortium appropriated from
general funds in the amount of $297,750 is unchanged from the previous year. Wise serves as
the fiscal agent and site of the Consortium offices. Of this amount, $97,750 is allocated to the
William King Regional Arts Center, a non-state agency located in Abingdon, Virginia. The
Consortium, which serves as the “flow through” agent for this funding, will remit the
appropriated allocation to William King after July 1, 2005.
Wise will provide funding once again in the amount of $15,000 in 2005-06 for operating
costs associated with the various performances produced during the year by the Pro-Art
Association of Wise County and the City of Norton.
A $500 allocation from Wise will provide supplemental support for the WISE-FM Public
Radio, which now airs via WVTF-FM operated through Virginia Tech.
Academic Support
The academic support program includes library services, technological and computer
services and academic services to both students and instructional faculty. Faculty development
and recruitment are also included within this program. The academic support budget is projected
to increase by $25,000 or 0.7 percent in the 2005-06 fiscal year. Increases in budgeted amounts
for 2005-06 include a 5.0 percent increase in OTPS totaling $20,300, a $48,000 payment for
Wise’s new student system, and a $7,000 increase in the technology fee budget to match the
increase in fee revenue projections. A cumulative increase in wages and fringe benefits from
2004-05 to 2005-06 is projected to total $10,000. These increases are offset by a one-time
allotment in 2004-05 from the University in the amount of $66,000 to fund a much needed
security up-grade.
33
Student Services
Social and cultural development, counseling and career guidance and general student
affairs are included within the student services program. Recruiting, financial aid services,
registration services and general college publications also fall within this program. For the
2005-06 fiscal year, the student services budget is projected to increase by $150,000 or 9.8
percent from 2004-05. Continued growth in enrollment requires increased funding for the costs
associated with student recruitment and retention. A total of $50,000 is allocated to support
these operating costs. An additional $25,000 is allocated to support the costs of remaining in
compliance with the Americans with Disabilities Act. Other increases to budgets within this
category include a 5 percent increase in OTPS totaling $6,300 and increases to the wage and
fringe benefits budget totaling $18,550.
General Administration
Included within the general administration program are the executive management, fiscal
operations, logistical services, public relations and development, and staff development areas.
The total increase in the general administration budget for 2005-06 is $144,000 or 5.8 percent.
Increases include an additional $10,000 allocated for the SACS Self Study and a 5 percent
increase in OTPS in the amount of $31,700. In addition, $33,700 is allocated to development for
increased operating costs.
Operation and Maintenance of Plant
Maintenance, housekeeping operations, utilities expenditures, facilities management and
landscaping make up this program. In 2005-06, the physical plant services budget is projected to
increase by $282,000 or 18.9 percent from 2004-05. An additional $150,000 is allocated to meet
the increased cost of utilities projected for 2005-06. The OTPS budget for physical plant
services is estimated to increase by $100,000 to accurately reflect actual operating costs.
STUDENT FINANCIAL AID
Student financial aid, funded from a mix of general fund appropriations, private funds
and grants, is expected to increase by 1.4 percent or $27,000 in 2005-06 to $1.9 million.
AUXILIARY ENTERPRISES
The auxiliary enterprises at Wise include student housing operations, bookstore and
cafeteria operations, parking and transportation, student health services, athletics and the student
union. Auxiliary enterprises are self-supporting, funded solely by revenue collected for services
provided to students, faculty, staff, and the general public. The auxiliary budget for 2005-06 will
total $6.3 million, an increase of $206,000 or 3.4 percent over the 2004-05 projection.
34
Student Fees
The student services fee provides operating revenue for many of Wise’s student life
functions, which in turn enhance the campus environment. Activities receiving revenue from
student fees include the student government association, student publications, intramural and
outdoor recreation activities, student health services, debt service for Cantrell Hall and the Slemp
Student Center, athletics and student life positions. The 2005-06 full-time fees total $2,040 per
academic year, an increase of $98.00 or 5.0 percent. The increase will support the operating
costs associated with maintaining quality services for the students at Wise.
Student Housing
The 2004-05 occupancy level for residence halls is 99.6 percent and occupancy for 200506 is expected to exceed 100 percent. The construction of a new residence hall is underway with
occupancy planned for January 2006. Housing rates will increase by 7.5 percent in 2005-06.
Parking & Transportation
The projected budget for parking and transportation for 2005-06 totals $97,477. Parking
permit fees will increase to $60 per year in 2005-06, an increase of $12 over 2004-05. The
2004-05 parking and transportation budget of $137,264 includes the one-time paving costs
associated with the new women’s softball field.
Cafeteria
The 2005-06 revenue projection for the cafeteria totals $1.1 million, an increase of
$8,681 over 2004-05. Student meal plan rates will increase by 5 percent for the 2005-06 year.
Students residing in campus residence halls are required to purchase a meal plan.
Bookstore
The 2005-06 operating budget for the bookstore is projected to total $892,417, an
increase of $6,200 over 2004-05.
Athletics
The projected athletics budget for 2005-06 is $892,866, a 10.0 percent increase over
2004-05.
STAFFING
To properly manage the federal, state and private funded grant programs, Wise has
increased both faculty and classified staff. An amendment was submitted to the Department of
Planning and Budget requesting an increase in FTE to reflect actual staffing within the grant
programs.
35
With the completion of the new Slemp Student Center, new positions in housekeeping,
maintenance, landscaping, clerical and office management have been created. The Residence
Life staff has increased to facilitate both the increase in residence hall occupants and the
construction of a new residence hall to be completed in 2006. The newly-created major in health
and physical education within the athletics program has made it necessary to add full-time
positions in women’s softball, football, volleyball and strength and conditioning.
Full-time equivalent positions for 2005-06 are allocated as follows:
Educational and General
Auxiliary Enterprises
Sponsored Programs
Total
209
32
10
251
36
UNIVERSITY OF VIRGINIA MEDICAL CENTER
2005-2006 BUDGET SUMMARY
The Medical Center’s budget plan has been developed to include aspects of the joint
Decade Plan, developed by the Medical Center, the School of Medicine, the School of Nursing,
the Health Sciences Library, and the Health Services Foundation, while considering the
challenge of providing patient care, teaching, and research services in an increasingly changing
health care industry. The cost associated with providing quality patient care will continue to
have upward pressure due to increases in medical supply, pharmaceutical, and medical device
expenses, as well as a continued shortage of healthcare workers. In addition, in 2005-06, the
Medical Center expects to continue its growth in surgery and to care for patients with high acuity
illnesses.
The Medical Center budget development process continues to be highly participatory and
clinically focused. Patient care service management, support function management, and
physicians have significant roles in the budget development cycle. The budget process begins
with senior management developing basic budget assumptions such as admissions, length of
stay, number of employees, and inflation. It continues with a budget forum which includes most
Medical Center managers and ends with each operating unit providing a cumulative operating
and capital budget that contains service demand forecasts, required full-time equivalent
personnel, and non-labor expenses.
The Medical Center continues to modernize and integrate information technology
services through the Integrated Health Information Management System (IHIMS) project.
Incremental operating costs in the 2005-06 budget for IHIMS are $1 million, with capital costs
of $6.8 million.
Previous increases in capital investment for the hospital expansion and all other capital
activity will result in additional depreciation expense of $9.8 million for 2005-06. The budget
maintains operating room capacity of 23 rooms, including two modular operating rooms. The
Medical Center’s 2005-06 fiscal plan accounts for these additional expenses while preserving its
goal of providing high quality and cost effective health care, education, and research services to
patients and their families, students, employers, state and federal governments, referring
physicians, referring agencies, and affiliated networks.
BUDGET DEVELOPMENT ASSUMPTIONS
Market Conditions
For 2005-06, discharges are budgeted at the same level as originally budgeted for 200405, but are projected to grow from the 2004-05 projected levels. 2004-05 levels did not meet
budget due to the average length of stay increasing to 5.8 days. In 2005-06 there is a
collaborative effort, along with a funded initiative, among doctors, clinicians, and administrators
to reduce the average length of stay back to the average historical level of 5.6 days. In addition
to the initiative to decrease the average length of stay, the growth in discharges from 2004-05
projected levels is influenced by increased operating room capacity. Outpatient service demand
is expected to grow by 3.2 percent consistent with Medical Center and industry trends.
37
The following table includes historical and projected patient volumes:
Discharges
Adjusted Discharges
Average length of stay
Patient days
Clinic & ER visits
Budgeted
2005-06
30,405
52,302
5.6
165,055
633,973
Forecasted
2004-05
28,460
48,539
5.8
165,055
633,973
Budgeted
2004-05
30,405
50,643
5.6
171,147
631,239
Actual
2003-04
29,164
47,972
5.74
167,622
624,696
Revenues
Revenues from operations are projected to increase 9.7 percent or $75.3 million to $853.2
million in 2005-06. The Medical Center’s 2005-06 budgeted payer mix remains consistent with
that of 2004-05. One of the Medical Center’s largest challenges is the unwillingness of payers,
especially government programs, to increase their payments to be commensurate with the
increases in medical delivery costs. Growth in revenues will be realized as a result of the full
year impact of the two operating rooms, added beds, additional bed capacity due to reducing
patient length of stay, and emerging new diagnostic and testing procedures.
Rate Changes
The Medical Center proposes rate increases of 8 percent to 9.9 percent, which is
commensurate with rate increases expected in the hospital industry.
Expenses
Expenses from operations are projected to increase 10.5 percent or $77.5 million to
$812.6 million in 2005-06. Expenses per adjusted discharge increase 2.6 percent from the
forecasted amount of $15,145 to $15,537. It is anticipated that expense per adjusted discharge
included in the budget will be approximately equal to the academic medical center median
expense as shown in the University Health System Consortium Operational Database.
Staffing
The Medical Center’s 2005-06 budget includes 6,012 FTEs, an increase of 115 FTEs
from staffing at the 2004-05 projections of 5,897 FTEs and 354 FTEs greater than in 2003-04.
On an adjusted discharge basis, FTEs will drop from 44.35 in 2004-05 to 41.95 in 2005-06
reflecting fewer FTEs required to treat volume growth.
OPERATING PLAN
The operating plan is presented on page 39 and includes actual results from 2003-04, the
original 2004-05 budget, the 2004-05 projection, and the 2005-06 budget. The Medical Center’s
2005-06 fiscal plan projects an operating margin of $40.6 million or 4.8 percent. With nonoperating activities contributing $18.0 million, net income is budgeted at $58.5 million. In
comparison, it is projected that the 2004-05 operating margin will be $42.8 million or 5.5
percent. Non-operating activities in 2004-05 are expected to contribute $18.6 million, for an
expected net income of $61.4 million.
38
UNIVERSITY OF VIRGINIA MEDICAL CENTER
OPERATING FINANCIAL PLAN
(dollars in thousands)
2005-06
Proposed
Budget
Operating Revenues
Total Gross Charges
2004-05
Projected
Results
2004-05
Approved
Budget
2003-04
Actual
Results
$1,600,268
$1,386,755
$1,267,435
$1,141,277
Less Deductions:
Indigent Care Deduction
Contractual Deduction
Total Deductions
97,751
668,675
766,426
83,799
543,857
627,656
85,626
437,022
522,648
79,386
375,314
454,700
Net Patient Revenue
833,842
759,099
744,787
686,577
19,342
18,751
13,139
15,398
Total Operating Revenues
853,184
777,850
757,926
701,975
Operating Expenses
Compensation and Benefits
Supplies, Utilities, and Other
Depreciation and Amortization
Interest Expense
Bad Debt
374,299
348,205
51,218
6,729
32,157
351,496
309,581
41,459
4,898
27,662
345,777
304,563
38,712
4,730
26,283
330,600
269,993
37,656
4,338
21,376
Total Operating Expenses
812,608
735,096
720,065
663,963
Operating Income
Operating Income Percent
40,576
4.8%
42,754
5.5%
37,861
5.0%
38,012
5.4%
Non-operating Revenues (Expenses)
Investment Income
Net Gain from Affiliates
Net Gain (Loss) on Fixed Assets
Other
Net Non-operating Revenues
18,661
1,271
(174)
(1,806)
17,952
18,973
1,271
(174)
(1,428)
18,642
14,294
1,035
(125)
(1,422)
13,782
14,443
2,264
(1,213)
(7,680)
7,814
58,528
61,396
51,643
45,826
51,218
41,459
38,712
37,656
Cash Available for Capital and Other
Transfer to Capital Requirements
109,746
65,300
102,855
50,000
90,355
62,500
83,482
41,400
Remaining Addition to Cash and
Reserves
$44,446
$52,855
$27,855
$42,082
Miscellaneous Revenue
Net Income
Add back Non-cash Expenditures:
Depreciation and Amortization
39
The rapidly changing health care environment will require continuous examination of
budget assumptions. Management will monitor budget versus actual performance on a monthly
basis and, where appropriate, make changes to operations. Management will continue to identify
and implement process improvement strategies that will allow for operational streamlining and
cost efficiencies.
The major strategic initiatives that impact next year’s fiscal plan include:
•
Salary adjustments for employees and residents; employee market adjustments, and
internal alignment adjustments.
•
The impact of increasing surgical case volume as accommodated by 23 operating
rooms.
•
The full year realization of operations of Lynchburg Dialysis.
•
Facility expansions such as the Core Lab.
•
Required expenses related to the Decade Plan and IHIMS.
•
Expansion of the radiology imaging joint venture.
•
Expansion of the services of the Virginia Ambulatory Services Center.
•
Continued construction of the hospital expansion which will be close to completion
by the end of the fiscal year.
The major risk factors that impact the ability to accomplish the fiscal plan include:
•
Nationwide shortage in healthcare workers which could negatively impact our ability
to staff expanded capacity especially when the biggest need will be for highly sought
operating room personnel.
•
Failure to achieve the reduction in patient length of stay.
•
Possible changes in key medical leadership positions.
•
Maintaining an adequate number of physicians in areas experiencing a national
shortage such as radiology, anesthesia, and hematology/oncology.
•
Centers for Medicare & Medicaid Services (CMS) and other regulatory
reimbursement changes.
•
Advancements in medical technology which could alter expenses and/or revenues
very quickly.
40
•
Inflation for medical devices and pharmaceuticals could exceed the budget
assumptions.
•
Enhanced scrutiny by federal regulators in areas such as medical records, billing,
coding and contractual agreements.
CAPITAL PLAN
Funds available to meet capital requirements are derived from operating cash flows,
funded depreciation reserve, and interest income. The Medical Center faces many challenges
regarding capital funding as continued pressures on the operating margin affect cash flow, while
demand for capital has increased significantly from space requirements, technological advances
and aging of existing equipment. Subject to funds availability, the Medical Center management
recommends $65.3 million be authorized for capital requirement
41
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2005-06 Financial Plan 2004-05 Projection
State General Fund Appropriations for Educational and General (E&G)
Legislative appropriations, Chapter 951
$
State adjustment to move research funds to 2004-05
Anticipated state adjustments
Total State General Fund Appropriations for E&G
Special State Appropriations for E&G
Eminent Scholars matching funds
Fishery Resource Grants, including reappropriation of 2003-04 balances
Reappropriation of 2003-04 balances
VIVA library materials
Total Special State Appropriations for E&G
State Nongeneral Funds for E&G
Traditional degree program tuition
School of Architecture
College of Arts & Sciences
McIntire School of Commerce
Curry School of Education
School of Engineering and Applied Science
School of Nursing
Medicine
School of Continuing and Professional Studies (SCPS)
Summer Session
January Term
Subtotal traditional degree program tuition
Transfer to undergrad University Grants
Transfer to graduate adjustment
Transfer to GTA/GAA remission
Transfer to GTA/GAA healthcare
Transfer to graduate University Grants
Subtotal tuition transferred to financial aid
Percentage of tuition to financial aid
130,214,366 $
(2,004,625)
1,780,545
129,990,286
2,933,590
210,000
3,143,590
6,414,580
116,796,213
7,871,191
8,259,637
28,273,485
4,063,430
15,500,264
2,508,744
5,850,000
167,700
195,705,244
119,591,166
2,004,625
308,776
121,904,567
2004-05 Approved
Budget
$ 120,478,535
(878,018)
119,600,517
2,933,590
234,916
1,581,914
61,014
4,811,434
$
6,117,800
109,197,900
7,435,600
7,435,600
25,509,200
3,390,800
14,066,100
2,436,801
5,170,000
155,715
180,915,516
2,933,485
210,000
3,143,485
$
6,117,800
109,197,900
7,435,600
7,435,600
25,509,200
3,390,800
14,066,100
2,436,801
5,170,000
180,759,801
(11,912,279)
(6,763,180)
(6,206,993)
(1,520,169)
(4,073,638)
(30,476,259)
15.6%
(9,741,469)
(6,790,261)
(5,803,584)
(1,333,482)
(4,112,113)
(27,780,909)
15.4%
(9,437,079)
(6,790,261)
(5,803,584)
(1,333,482)
(3,588,489)
(26,952,895)
14.9%
165,228,985
153,134,607
153,806,906
33,123,771
20,990,850
5,073,180
1,290,000
763,677
61,241,478
30,186,160
20,401,633
4,716,600
973,500
623,660
56,901,553
30,186,160
20,401,633
4,803,600
973,500
623,660
56,988,553
(5,509,269)
9.0%
(3,870,717)
6.8%
(3,161,444)
5.5%
Net self-supporting degree program tuition
55,732,209
53,030,836
53,827,109
Other tuition and fees
SCPS non-degree tuition and fees
McIntire executive and E&Y fees
Mandatory E&G fees
Application fees
Other program fees
Total other tuition and fees
9,178,972
1,408,793
3,213,850
2,323,200
1,512,768
17,637,583
9,173,972
1,345,318
2,410,100
1,757,600
1,472,230
16,159,220
9,241,015
1,342,612
2,585,100
1,757,600
1,472,230
16,398,557
238,598,777
222,324,663
Net traditional degree program tuition
Self-supporting degree program tuition
Law JD, graduate, and appellate judges' programs
Darden MBA and PhD programs
McIntire executive and E&Y degree programs
Engineering executive degree program
SCPS BIS degree program
Subtotal self-supporting degree program tuition
Transfer to University Grants
Percentage of tuition to financial aid
Total Tuition and Program Fees
224,032,572 43
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2005-06 Financial Plan 2004-05 Projection
Fines, rents, sales and services
Recovery of overhead (30%)
Transfer to GRA healthcare
Work study reimbursement
4,209,799
16,600,000
(739,114)
585,000
3,724,241
16,600,000
(972,518)
585,000
2004-05 Approved
Budget
2,478,953
16,600,000
(972,518)
585,000
Total State Nongeneral Funds for E&G
259,254,462
242,261,386
242,724,007
Total Grants, Contracts and Indirect Cost Recoveries for E&G
262,547,775
248,514,676
257,029,900
654,936,113
617,492,063
622,497,909
1,330,889
48,704,251
48,541,348
26,162,186
1,592,013
47,739,981
45,425,764
22,724,943
1,306,100
48,401,892
49,041,250
26,313,571
124,738,674
117,482,701
125,062,813
779,674,787
734,974,764
747,560,722
Funds Available for Student Financial Assistance
State general fund appropriations
Tuition and other nongeneral funds
Grants, contracts and indirect cost recoveries
Endowment distributions projected for expenditure
Private gifts projected for expenditure
Investment and other income projected for expenditure
6,424,984
36,724,642
20,672,379
17,979,749
17,006,247
2,210,921
6,149,848
32,624,144
20,612,566
18,564,546
17,196,190
2,234,046
6,149,848
31,086,857
19,170,100
17,845,280
16,090,423
2,145,020
Total Funds Available for Student Financial Assistance
101,018,922
97,381,340
92,487,528
Total State Funds for E&G
University Funds for E&G
Student activity fees
Endowment distributions projected for expenditure
Private gifts projected for expenditure
Sales, services, investment and other income projected for expenditure
Total University Funds for E&G
Total Funds Available for E&G
44
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2005-06 Financial Plan 2004-05 Projection
Revenues from Auxiliary Enterprises
Athletics
TV, radio, licensing and sponsorship
Conference revenue
Gate receipts
Student fees
Private gifts and endowment distributions
Other
Subtotal
2004-05 Approved
Budget
1,910,000
9,179,000
11,816,750
8,704,000
2,384,405
974,500
34,968,655
1,662,670
8,235,000
10,464,656
7,650,000
2,509,719
1,048,684
31,570,729
1,635,000
8,235,000
10,464,656
7,650,000
2,509,718
987,800
31,482,174
University bookstores
34,183,051
33,293,265
34,254,265
Housing
Student housing rents
Conference services
Faculty and staff housing
Subtotal
25,512,000
2,870,000
650,000
29,032,000
23,867,000
2,657,000
697,460
27,221,460
23,867,000
2,657,000
697,460
27,221,460
Parking and transporation
Student fees
Parking fees, bus passes, charter fees and other
Subtotal
2,554,000
11,445,000
13,999,000
2,455,000
10,615,000
13,070,000
2,455,000
10,595,000
13,050,000
Voice communications
Student health
Intramural/recreation sports
Printing services
Newcomb Hall and University Programming Council
Dining
Leased facilities
Mail services
University Press
Other
13,224,604
7,398,783
5,413,550
5,217,000
4,489,762
3,755,200
3,972,615
1,979,000
1,852,954
994,595
11,913,101
6,798,139
5,221,843
4,757,900
4,322,717
3,544,900
2,845,388
1,924,800
1,619,609
1,116,508
11,913,101
6,798,139
5,280,843
4,757,900
4,345,717
3,544,900
2,845,388
1,924,800
1,619,609
1,221,750
Total Revenues from Auxiliary Enterprise Operations
160,480,769
149,220,359
150,260,046
981,576,463
990,308,296
Total Funds Available for the Academic Division
$
1,041,174,478
$
45
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Projected Use of Funds
2005-06 Proposed 2004-05 Projected 2004-05 Approved
Budget
Budget
Results
Educational & General (E&G) Programs
State Funds for E&G Programs
101 Direct instruction
102 Research
103 Public service
104 Library, information technology, and academic administration
105 Student services
106 General administration
107 Operation and maintenance of physical plant
Total State Funds for E&G Programs
Grants, Contracts and Indirect Cost Recoveries for E&G Programs
101 Direct instruction
102 Research
103 Public service
104 Library, information technology, and academic administration
105 Student services
106 General administration
107 Operation and maintenance of physical plant
Total Grants, Contracts and Indirect Cost Recoveries for E&G Programs
Private Funds for E&G Programs
101 Direct instruction
102 Research
103 Public service
104 Library, information technology, and academic administration
105 Student services
106 General administration
107 Operation and maintenance of physical plant
Total Private Funds for E&G Programs
Total for E&G Programs
$
206,454,736
6,514,513
3,141,825
68,785,052
17,811,642
39,852,215
49,828,355
$
199,490,883
6,428,145
2,963,497
67,109,561
17,007,745
30,246,278
45,731,278
$
196,455,897
7,065,599
2,570,122
65,042,798
15,679,656
33,025,958
45,627,979
$
392,388,338
$
368,977,387
$
365,468,009
$
4,258,147
226,687,580
9,581,828
15,498,901
243,640
4,676,808
1,600,870
$
3,602,896
216,898,971
8,680,684
14,307,430
224,951
4,702,165
97,579
$
5,131,485
213,524,000
14,597,000
17,771,515
469,000
5,161,900
375,000
$
262,547,775
$
248,514,676
$
257,029,900
$
38,969,010
24,134,179
13,372,049
19,103,587
3,769,347
22,688,566
2,701,936
$
34,652,937
21,494,105
13,657,906
19,117,986
3,063,747
23,229,220
2,266,800
$
47,224,017
18,120,065
12,128,828
19,436,813
2,798,050
22,972,743
2,382,297
$
124,738,674
$
117,482,701
$
125,062,813
$
779,674,787
$
734,974,764
$
747,560,722
47
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Projected Use of Funds
2005-06 Proposed 2004-05 Projected 2004-05 Approved
Budget
Budget
Results
Student Financial Assistance
108 State scholarships and fellowships
108 Grant-related scholarships and fellowships
108 Private scholarship and fellowships
$
43,149,626
20,672,379
37,196,917
$
38,773,992
20,612,566
37,994,782
$
37,236,705
19,170,100
36,080,723
$
101,018,922
$
97,381,340
$
92,487,528
$
34,968,660
34,140,351
28,915,100
13,999,000
13,224,604
7,398,783
5,413,550
5,217,000
4,489,674
3,477,900
3,972,615
1,978,900
1,934,330
947,728
$
31,567,409
33,107,365
27,093,000
13,061,000
11,913,101
6,873,139
5,217,850
4,757,900
4,154,921
3,332,150
2,845,388
1,924,700
1,646,037
1,131,594
$
31,356,869
34,159,265
27,093,000
13,041,000
11,913,101
6,798,139
5,275,850
4,757,900
4,300,956
3,332,150
2,845,388
1,924,700
1,646,037
1,119,408
Total for Auxiliary Enterprises
$
160,078,195
$
148,625,554
$
149,563,763
Total Operating Budget - Academic Division
$
1,040,771,904
$
980,981,658
$
989,612,013
Total for Student Financial Assistance
Auxiliary Enterprise Operations
Athletics
University bookstores
Housing and conference services
Parking and transportation
Voice communications
Student health
Intramural/recreation sports
Printing services
Newcomb Hall and University Programming Council
Dining
Leased facilities
Mail services
University Press
Other auxiliary activities
48
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
First-Year Retention Rate (%)
Fall 99 Fall 2000
Fall 2000 - Fall Fall 2001 - Fall Fall 2002 - Fall Fall 2003 - Fall
2001
2002
2003
2004
96.6%
96.0%
96.6%
97.1%
97.0%
Peer Group
Average
90.0%
The University has one of the highest retention rates of all public instituions in the Association of American Universities. This result is evidence of the
University's outstanding undergraduate educational experience.
Number of Transfer Students from VCCS and Richard Bland Colleges
Fall 1997
Fall 1998
Fall 1999
Fall 2000
Fall 2001
Fall 2002
Fall 2003
5-Year
Average
184
173
168
122
153
148
177
154
The number of applications from Virginia Community College System (VCCS) students declined in fall 2002, resulting in a drop in the number of entering VCCS
transfer students. However, the University remains strongly committed to recruiting highly qualified VCCS applicants at closer to previous levels in the near
future. In fact, the number of matriculants in fall 2003 has already begun to rebound.
Undergraduate Class Section Size
Fall 1999
Fall 2000
Fall 2001
Fall 2002
Fall 2003
3-Year
Average
2-9
17.4%
18.2%
16.4%
16.3%
16.9%
16.5%
10-19
32.5%
32.2%
32.4%
31.4%
30.6%
31.5%
20-29
20.5%
18.8%
20.3%
20.8%
20.5%
20.5%
30-39
9.4%
10.2%
10.4%
9.5%
10.1%
10.0%
40-49
6.2%
5.8%
6.0%
7.1%
6.4%
6.5%
50-99
8.3%
8.8%
8.2%
8.9%
9.0%
8.7%
100+
5.7%
6.0%
6.3%
6.0%
6.3%
6.2%
Approximately 10% of the undergraduate students also enrolled in individual instruction courses in the fall 2003 are not included above. These provide one-onone contact with senior faculty. Most of the courses of size 50 or more have associated discussion sections that meet once a week with graduate instructors. These
discussion sections typically contain 20 or fewer students and allow the students to interact in a smaller setting to discuss, in depth, what was covered in the lecture
during the previous week. Many of the science courses also have additional laboratory sections in which the student can receive individual help from the lab
instructor.
Percent of Lower-Division Courses Taught by Full-Time Faculty
Fall 1997
Fall 1998
Fall 1999
Fall 2000
Fall 2001
Fall 2002
Fall 2003
5-Year
Average
Sections
72%
73%
73%
75%
74%
74%
75%
74%
Subsections
13%
18%
18%
17%
18%
16%
10%
16%
The subsections included above are discussion and laboratory sections that are associated with the primary lectures. The associated subsections are typically
taught by graduate teaching assistants while the lecture sections to which they are associated, are taught by full-time faculty.
First-Time, Full-Time Graduation Rate after Six Years
1992 Cohort
1993 Cohort
1994 Cohort
1995 Cohort
1996 Cohort
1997 Cohort
4-Year
Average
Peer Group
Average
91.3%
92.2%
91.8%
92.2%
92.0%
92.0%
92.0%
75.0%
The University's 6-year graduation rate for first-time full-time freshmen is the highest among all state-supported universities in the United States. This provides
compelling evidence of the University's strong commitment to the success of its undergraduate students and to the students' obvious satisfaction with their
educational experiences at the University.
49
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
Average Time-to-Degree for Undergraduate Degrees (years)
Grad. In 1996- Grad. In 1997- Grad. In 1998- Grad. In 1999- Grad. In 2000- Grad. In 2001- Grad. In 200297
98
99
2000
01
02
03
4.2
4.1
4.2
4.1
4.2
4.2
4.1
5-Year
Average
4.2
The University works diligently, through its advising programs, to keep undergraduates on track to earn 4-year bachelors degrees. Approximately 90% of UVa
bachelors degree recipients graduate within 4 years and over 99% graduate within 5 years.
Percentage of Living Undergraduate Alumni who Donate Annually
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
Peer Group
Average
28%
28%
29%
30%
28%
26%
27%
Alumni giving can indicate the degree of loyalty that alumni hold toward the institution and the degree of non-gift support they will render in terms of serving as
volunteer alumni leaders, participating in programs, attending athletic competitions, and voicing favorable opinions about the institution to prospective students
and others.
Classroom and Laboratory Space Utilization (Occupancy Rate)
Fall 1996
Fall 1998
Fall 2000
3-Year
Average
Classrooms
57%
58%
61%
59%
Labs
54%
68%
64%
62%
UVA exceeded the SCHEV guidelines for both classroom and class lab utilization in fall 2000. As a residential university, UVA offers traditional classes during
the day and encourages students to attend both formal and informal study sessions in the evenings. Thus, classrooms are used for multiple purposes, which
increases the efficiency of space utilization. Such informal use of classrooms is not included in the figures above.
Percentage of E&G Spending on Instruction and Academic Support
FY1999
FY2000
FY2001
FY2002
FY2003
Public Peer
Group Avg.
69%
71%
72%
67%
69%
63%
This measure illustrates the investment the institution has made in its primary program of instruction relative to other supporting activities. It is best viewed in the
context of similar institutions or as a trend over time.
Percentage of Management Standards Met
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY2002
FY2003
5-Year
Average
100%
100%
100%
100%
100%
100%
100%
100%
The Commonwealth sets management standards as measures of sound financial practices and performance. The University has met 100 percent of the standards
since their inception.
Debt Service-to-Expenditure Ratio
FY 1997
FY 1998
FY 1999
FY 2000
FY 2001
FY2002
FY2003
5-Year
Average
3.7%
3.5%
3.7%
4.9%
5.0%
2.7%
2.3%
3.7%
This ratio is used to guide management in its decisions regarding future capital construction and its financing. As such, it is a measure of the financial health of an
institution. The University's debt ratio remains well below the Commonwealth of Virginia's performance upper limit of 7%. Beginning in FY02, in accordance
with Governmental Accounting Standards, the University adopted GASB No. 35, Basic Financial Statemetns and Management's Discussion Statements Nos 37
and 38 for financial reporting. The above ratios are computed in accordance with GASB No. 35 and should not be compared to ratios computed under prior
financial reporting models.
50
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
Research and Public Service Expenditures per Full-Time Faculty
FY 2000
FY 2001
FY2002
FY2003
Peer Group
Average
$91,837
$91,690
$113,842
$142,956
$122,597
Research leads to better health care for the citizens of the Commowealth, and provides access to important experimental research trials. Research drives economic
development; Commerce Department statistics indicate that UVa research creates over 10,000 jobs (over 36 jobs per $1 million of research awards). UVa
discoveries and inventions stimulate start-up businesses in the region and these bring valuable high-tech employment opportunities to Virginia. Research activities
enhance the quality of undergraduate education and the University's K-12 outreach.
Credit Hours Taught per FTE Faculty
Fall 97
Fall 98
Fall 99
Fall 2000
Fall 2001
FY2002
FY2003
5-Year
Average
231
232
226
224
224
230
230
227
The five year average of 227 credit hours taught per fall term per faculty member is the equivalent of each faculty member teaching 3 courses (of 3 credit hours
each) with an average of 25 students in each class.
Moody's Bond Rating
1997
1998
1999
2000
2001
2002
2003
Aa1
Aa1
Aa1
Aaa
Aaa
Aaa
Aaa
Moody’s Investors Service, one of the world’s leading credit rating, research, and risk analysis companies, upgraded the University’s General Pledge Revenue
Bond Issues to Aaa status in 2000. Only two other public universities – the University of Texas at Austin and the University of Michigan - have been assigned this
rating. The rating is based on a superior balance sheet, excellent student demand for undergraduate and graduate programs, manageable plans for additional
borrowing, and strong overall operating performance.
African American First-Time, Full-Time Graduation Rate after Six Years
1993 Cohort
1994 Cohort
1995 Cohort
1996 Cohort
1997 Cohort
AAU Publics
Average 1996
Cohort
84.6%
83.1%
83.3%
87.4%
87.3%
63.2%
The graduation rates displayed are for first-time, full-time African American students who received a bachelor's degree within 6 years of entering. The University
has the highest such rate of all public institutions in the Association of American Universities and 10th highest among AAU privates. This result shows the
University's continuing strong commitment both to a diverse student body and to their academic success.
NSF Federally Funded Research Expenditures Ranking
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
5-Year
Average
58th
55th
47th
46th
45th
49th
48th
The National Science Foundation (NSF) collects total annual expenditures on federally funded research and publishes a ranked list based on those expenditures.
Even though it is a small institution compared to most other major public research institutions, UVa has improved its ranking in federally funded research
expenditures by 6 positions between FY97 and FY01 and is committed to continuing the growth.
51
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
Selected Awards Received Annually by UVa Faculty
Award
5-Year
Average
1998
1999
2000
2001
2002
2003
0
2
0
1
2
1
0
4
2
3
0
4
3
0
0
4
1
1
0
5
0
1
1
1
1.6
1.2
0.2
3.6
0
2
1
0
0
0
0
0
0
0
0
0
0
0
1
1
2
0
0
0
0
0
2
0
0
1
0
0
0
1
0
0
1
0
0
0
0
1
1
0
0
0
0.2
0.8
0.6
0.2
0.4
-
National Humanities Center Fellowships
0
0
0
2
0
1
2
0
1
0
1
1
0.8
0.8
National Research Council Minority
Fellowships
0
0
0
0
1
0
0.2
3
0
1
2
0
4
0
2
1
0
3
1
0
0
1
5
1
0
0
0
3
0
1
0
0
5
0
2
2
0
4.0
0.4
1.0
0.6
0.2
American Academy of Arts and Sciences
American Council of Learned Societies
CASE Professor of the Year
Fulbright Scholar Program
Getty Postdoctoral Fellowships in the History
of Art and the Humanities
Guggenheim Fellowships
Institute of Medicine
Life Achievement Award
MacArthur Awards
National Academy of Engineering
National Academy of Sciences
National Endowment for the Humanities
Fellowships
National Science Foundation CAREER
Awards
Pew Scholars in Biomedicine
Sloan Foundation Awards
Virginia's Outstanding Faculty Member
Virginia's Outstanding Scientist
Total
12
16
19
18
15
16
16.8
A major research institution, UVa shares with many of the nation's top universities the distinction of its faculty annually receiving such awards as listed above. For
example, the National Academy of Science, the National Academy of Engineering, and the American Academy of Arts and Sciences are the most prestigious
organizations of scientists in the entire world. Pew and Fulbright Scholarships, Guggenheim and Getty Fellowships, and National Science Foundation Career
Awards, are granted only to top humanities and science faculty. As expected, UVa maintains a steady state of such new awards each year.
Student Awards
1998
Beinecke Scholars
Goldwater Scholars
0
3
Jack Kent Cook Award
Luce Scholars
Marshall Scholars
Mellon Scholars
0
0
1
Mitchell Scholars
Rhodes Scholars
St Andrews Award
Truman Scholars
Udall Scholars
1
0
1
0
1999
2000
0
0
3
2
Awards were first given in 2001
0
0
0
1
2
0
Awards were first given in 2002
1
0
0
0
0
2
0
1
2001
2002
2003
5-Year
Average
0
4
6
1
0
0
0
3
4
0
0
0
1
0
0
2
0
0
4
1
0
1
0
1
0
0
1
0
0.0
3.2
3.7
0.2
0.4
0.4
1.0
0.2
0.2
1.0
0.4
0
1
0
1
Total
6
6
6
13
10
8
11
This measure demonstrates the degree to which national and international organizations recognize and monetarily reward University students for their
achievements. These awards are highly selective and competitive. Selection criteria vary among the award-granting organizations, but high academic achievement
is of primary importance. Other factors include integrity of character, service to the community, potential for leadership, and interest in specific careers such as
public service, higher education, business and industry, and the arts. The number of successful students (13 this year) and the diversity of the awards (from
graduate school funding to study in Asia and Scotland) demonstrate the enhancement we have seen in this area. See
http://www.virginia.edu/artsandsciences/fellowships/ for more information. In 2003, the Jack Kent Cooke award was changed to include national instead of
regional competition, so only 2 students per school could be nominated.
52
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
Percent University Housing Beds with Internet Ports
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
5-Year
Average
100%
100%
100%
100%
100%
100%
100%
100%
This measure demonstrates the University’s commitment to technology as a means of education and communication for students by providing state-of-the-art
internet access for each student who lives in University housing. Twenty-four hour, in-room access provides greater safety and convenience than public computer
labs, and it enables students to use the power of the internet for conducting University business, for performing academic research, and for communicating with
faculty and other members of the University community.
Association of Research Libraries Index
Volumes Held
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
5-Year
Average
4,513,843
4,588,606
29,543,494
22nd
4,678,553
47,806,197
23rd
4,779,269
76,773,284
22nd
4,867,833
91,727,071
23rd
4,921,442
101,662,463
25th
4,767,141
69,502,502
23rd
Web Page Acesses
ARL Index Ranking
22nd
The Association of Research Libraries (ARL) includes 112 of the largest academic libraries in North America. Each year ARL uses principal component analysis to
aggregate five data categories: volumes held, volumes added (gross), current serials, total library expenditures, total professional and support staff. For each
library this analysis produces the "ARL Library Membership Index." Each year the current index rankings (from 1 to 112) are published in the Chronicle of
Higher Education .
US News and World Report Ranking
National Universities
National Public Universities
1999
2000
2001
2002
2003
2004
5-Year
Average
Tied 22nd
Tied 1st
22nd
2nd
Tied 20th
Tied 1st
Tied 21st
2nd
23rd
2nd
Tied 21st
Tied 1st
Tied 21st
2nd
The US News and World Report uses a combination of program quality and financial measures to rank colleges and universities each year (note: the methodology
changes from year to year.). Achieving status as the number one public university in the country has been a goal of the University since 1990, a goal that has been
met in four of the last seven years. Most recently, the University has set its aspirations higher, seeking to be both the top public university and among the top 15
universities overall.
Kiplinger's Ranking of State Colleges and Universities
In-State
Our-of-State
1998
2000
2002
2003
2nd
2nd
2nd
2nd
8th%
Like the US News rankings, the Kiplinger’s rankings can be used to assess the overall quality and effectiveness of an institution compared with its competitors.
Kiplinger’s selects the top 100 public colleges/universities based on quality, then ranks them based on a combination of quality and cost measures. Beginning in
2003, separate rankings were provided based on in-state costs vs. out-of-state costs. Kiplinger's does not rank public institutions every year.
53
University of Virginia - Academic Division
Supplemental Budget Information
Selected Performance Measurements
(from Report of Institutional Effectivness, http://roie.schev.edu/)
National Research Council Rankings of Research-Doctorate Programs
Rankings were
Programs Ranked in the Top 10 (5)
English (4), Spanish-Italian-and-Portuguese (5), Religious Studies (6), German (8), Physiology (9)
Programs Ranked 11th through 20th (6) French (13), Art History (16), Astronomy (17), Classics (18), History (19), Psychology (19)
Unlike the U.S. News and World Report , which ranks mostly undergraduate and professional programs, the National Research Council (NRC) ranks graduate
programs. The above rankings are based on the NRC criterion of quality of faculty in the program. If institutions around the country are compared on the basis of
how many graduate programs they have in the top 20, according to the NRC quality of faculty rankings, UVa ranks 25th in such a comparison, with 11 top 20
programs. UVa is one of a few institutions to achieve such a distinction in predominantly humanities and behavioral sciences programs, rather than in engineering
and physical sciences programs. Increasing resources to science and engineering, as well as fine and performing arts, are priorities in the University's long-range
plans.
Jobs Created by Research
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
5-Year
Average
5,803
5,942
6,812
7,608
8,157
9,332
10,066
8,395
Research leads to better health care for the citizens of the Commowealth, and provides access to important experimental research trials. Research drives economic
development; Commerce Department statistics indicate that UVa research creates over 10,000 jobs (over 36 jobs per $1 million of research awards). UVa
discoveries and inventions stimulate start-up business in the region and these bring valuable high-tech employment opportunities to Virginia. Research activity
also enhances the quality of undergraduate education and the University's K-12 outreach.
54
University of Virginia - Medical Center
Supplemental Budget Information
Selected Performance Measurements
Medicare Case Mix Index
Average Length of Stay
Gross Revenue per Adjusted Discharge
Net Revenue per Adjusted Discharge
FTE per Adjusted Discharge
FTE per Adjusted Occupied Bed
Labor Expense per Adjusted Discharge
Supply Expense per Adjusted Discharge
Total Expense per Adjusted Discharge
Operating Margin
2005-06
Budget
1.9
5.6
$
30,597
$
16,313
41.95
7.50
$
7,156
$
3,579
$
15,537
4.8%
50th
Percentile
Peer Median
1.9
6.0
$
30,320
$
16,690
42.96
7.00
$
7,453
$
3,315
$
15,506
4.3%
55
APPROVAL OF THE 2005-2006 OPERATING BUDGET FOR THE ACADEMIC
DIVISION
RESOLVED that the 2005-2006 Operating Budget for the Academic Division is
approved, as recommended by the President and the Chief Financial Officer.
APPROVAL OF THE 2005-2006 OPERATING BUDGET FOR THE
UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE
RESOLVED that the 2005-2006 Operating Budget for the College at Wise is
approved, as recommended by the President and the Chief Financial Officer.
APPROVAL OF THE 2005-2006 OPERATING BUDGET FOR THE
UNIVERSITY OF VIRGINIA MEDICAL CENTER
RESOLVED that the 2005-2006 Operating Budget for the University of Virginia
Medical Center is approved, as recommended by the Medical Center Operating Board,
the President, and the Chief Financial Officer.
University Academic Division
Major Budget Unit Detail
Table of Contents
Units Reporting to the Vice President and Provost
Office of the Vice President and Provost ………………………………………………………………...A-1
Planning & Evaluation …………………………………………………………………………………...A-2
Admissions ……………………………………………………………………………………………….A-3
Virginia Foundation for the Humanities …………………………………………………………………A-4
Center for Public Service ………………………………………………………………………………...A-5
Center for Liberal Arts …………………………………………………………………………………...A-6
Center for Politics ………………………………………………………………………………………..A-7
Institute of Advanced Technology in Humanities ………………………….…………………………...A-8
Associate Provost for Academic Support ………………………………………………………………...A-9
Vice Provost for International Affairs ....………………………………………………………………A-10
Vice Provost for Academic Programs ….………………………………………………………………..A-11
Associate Provost for Management & Budget ….……………………………………………………….A-12
University Library ….……………………………………………………………………………………A-13
Architecture School ……………………………………………………………………………………..A-14
Law School ……………………………………………………………………………………………...A-15
Curry School of Education ….…………………………………………………………………………...A-16
School of Engineering and Applied Sciences …….……………………………………………………..A-17
Darden Graduate School of Business Administration .....……………………………………………….A-18
School of Continuing and Professional Studies ….……………………………………………………...A-19
College of Arts and Sciences ….………………………………………………………………………...A-20
McIntire School of Commerce ….……………………………………………………………………….A-21
School of Nursing ……………………………………………………………………………………….A-22
School of Medicine ….…………………………………………………………………………………..A-23
Units Reporting to the Vice President for Research and Graduate Studies
Office of the Vice President for Research and Graduate Studies ….........................................................A-24
Environmental Health and Safety ….........................................................................................................A-25
Units Reporting to the President
Office of the President …………………………………………………………………………………..A-26
Major Events …………………………………………………………………………………………….A-27
Board of Visitors ….……………………………………………………………………………………..A-28
Miller Center for Public Affairs ….……………………………………………………………………...A-29
Equal Opportunity Programs ……………………………………………………………………………A-30
General Counsel …………………………………………………………………………………………A-31
Virginia Quarterly Review.... ..................................……………………………………………………..A-32
Diversity Office .... ………………………………………………………………………………………A-33
Federal Relations ….……………………………………………………………………………………..A-34
Units Reporting to the Senior Vice President for Development & Public Affairs
University Development Office …………………………………………………………………………A-35
University Relations …………………………………………………………………………………….A-36
University Academic Division
Major Budget Unit Detail
Table of Contents (continued)
Units Reporting to the Executive Vice President and Chief Operating Officer
Office of the Executive Vice President and Chief Operating Officer …………………………………..A-37
University Police ….……………………………………………………………………………………..A-38
Audit Department ….…………………………………………………………………………………….A-39
University Architect ……………………………………………………………………………………..A-40
Units Reporting to the Vice President for Management and Budget
Office of the Vice President for Management and Budget ….…………………………………………..A-41
Leadership Development Center ….……………………………………………………………………..A-42
University Budget Office, including University Reserves ….………………………………...A-43
State Governmental Relations ….………………………………………………………………………..A-44
Procurement Services ….………………………………………………………………………………...A-45
Facilities Management …………………………………………………………………………………..A-46
Units Reporting to the Vice President for Finance
Office of the Vice President for Finance ………………………………………………………………..A-47
Comptroller ……………………………………………………………………………………………...A-48
Business Operations ….………………………………………………………………………………….A-49
Human Resources ….…………………………………………………………………………………….A-50
Sponsored Programs …………………………………………………………………………………….A-51
Risk Management ….…………………………………………………………………………………….A-52
Integrated System Deployment and Support ….…………………………………………………………A-53
Units Reporting to the Director of Athletic Programs
Athletics …………………………………………………………………………………………………A-54
Intramurals and Recreational Sports …………………………………………………………………….A-55
Units Reporting to the Vice President for Student Affairs
Office of the Vice President for Student Affairs ….……………………………………………………..A-56
Office of African American Affairs ….………………………………………………………………….A-57
Office of the Dean of Students ….……………………………………………………………………….A-58
Residence Life ………………………………………………………………………………………..A-59
Student Health ….………………………………………………………………………………………..A-60
University Career Services ….…………………………………………………………………………...A-61
WTJU ……………………………………………………………………………………………………A-62
Units Reporting to the Vice President and Chief Information Officer
ITC Budget & Administration ........……………………………………………………………………..A-63
ITC Communications & Systems ….…………………………………………………………………….A-64
ITC Computing Support Services ................. ……………………………………………………………A-65