UNIVERSITY OF VIRGINIA
BUDGET SUMMARY
2006-2007
Cover photograph courtesy of Dan Addison
UNIVERSITY OF VIRGINIA – ALL DIVISIONS
2006-2007 OPERATING BUDGET SUMMARY
The operating expenditure budget for the period July 1, 2006 through June 30, 2007 for
the University of Virginia will total $1.97 billion, an increase of $123.2 million or 6.7 percent
compared with the 2005-06 projection. Of the total budget, $1.1 billion or 54.4 percent relates to
the Academic Division (including the Schools of Medicine and Nursing), $866 million or 44.1
percent to the Medical Center, and $30.4 million or 1.5 percent to the University of Virginia’s
College at Wise (Wise).
OPERATING EXPENDITURE BUDGET
(in millions)
Academic Division
Medical Center
Wise
Total
2006-07
Budget
$1,069.9
$ 866.0
$ 30.4
$1,966.3
2005-06
Projection
$1,009.4
$ 806.4
$ 27.2
$1,843.0
Increase
$ 60.5
$ 59.6
$ 3.2
$123.3
%
Increase
6.0%
7.4%
11.7%
6.7%
2005-06 2004-05
Budget
Actual
$1,040.8
$925.6
$812.6
$757.0
$26.6
$25.0
$1,880.0 $1,707.6
SOURCES FOR THE OPERATING EXPENDITURE BUDGET
As shown below, patient revenues (44.1 percent) fund the greatest proportion of the
operating expenditure budget, followed by tuition and fees (15.5 percent) and grants and
contracts (14.1 percent). In only three of the past fifteen years has tuition and fees provided a
greater percentage of the University budget than grants and contracts. The 2006-07 situation is
due to increasing tuition coupled with expected reductions in federally sponsored grants. The
state general fund appropriation will contribute 8.5 percent, gift and endowment distributions
will provide 7.8 percent, and auxiliary enterprise operations will provide 7.5 percent of the
operating expenditure budget.
2006-07
O ther
2.5%
Auxiliarie s
7.5%
2005-06
Patient
Re v.
44.1%
Private
7.8%
Auxiliaries
7.5%
Patient Rev.
43.9%
Private
7.7%
State GF
8.3%
State GF
8.5%
Grants &
Contracts
14.1%
Other
2.1%
Tuition &
Fe e s
15.5%
Grants &
Contracts
15.3%
Tuition &
Fees
15.2%
EMPLOYMENT LEVELS – ALL DIVISIONS
1
The University has planned for 14,454 full-time equivalent (FTE) positions for 2006-07,
an increase of 0.2 percent or 25 FTEs from the 2005-06 revised budget levels as shown below.
The Academic Division is expecting 8,098 FTEs, a decrease of 38 FTEs, the Medical Center is
projecting 6,092 FTEs, an increase of 63 over current staffing levels, and the College at Wise
plans to maintain its employment at the current level of 264 FTEs, pending resolution of the
2006-08 Appropriation Act.
History of Employment Levels
15,000
12,500
10,000
7,500
5,000
2,500
0
1998
1999
UVA
2000
2001
2002
2003
Med Ctr
2004
2005
2006
2007
Wise
KEY ISSUES
During 2005-06, the University administration was fully engaged in developing and
negotiating the management agreement and related policies with the State administration. All
policies were approved by Governor Warner and his Secretaries and submitted for General
Assembly approval with the 2006-08 Budget Bill. The General Assembly then re-submitted the
detailed management agreement as legislation during the 2006 session. The House and Senate
have approved the legislation, which is awaiting the signature of Governor Kaine with an
expected July 1, 2006 effective date. A priority in 2006-07 will be completing a number of tasks
related with the operational implementation of increased decentralized authority.
For all three divisions, the absence of an approved state budget has provided a challenge
in developing an operating budget for 2006-07. The Academic Division and College at Wise
have reviewed the potential budgets and included a conservative estimate of additional funding
and faculty and staff compensation increases. The Medical Center reflects full reimbursement of
indigent care costs, as expected in the final state budget.
Faculty and staff compensation and retention remain a concern for all divisions and will
be discussed in later sections. Fuel increases, whether through each division’s utility budget, the
fuel costs associated with the University transit system, or the impact on the cost of capital
construction, are a significant cost driver in 2006-07. For the Academic Division, actions by the
Board of Visitors helped to focus several University planning and funding priorities toward
financial aid, compensation, deferred maintenance, and research. Later sections will outline how
these actions are reflected in the 2006-07 budget.
2
For the Medical Center, the 2006-07 fiscal plan incorporates aspects of the Decade Plan
developed by the Medical Center and School of Medicine while considering the challenges 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 shortage of healthcare workers. In addition, the Medical Center has planned for the
continued implementation of the Integrated Health Information Management System, as well as
growth in surgery and the number of patients with high acuity illnesses.
COMPARISON OF THE OPERATING BUDGET TO AUDITED FINANCIAL RESULTS
The University’s 2006-07 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). The
operating budget and the audited financial statements are prepared with somewhat different
objectives and are based on differing rules and conventions. 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.
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 Statement of Revenues, Expenses, and Changes in Net Assets (SRECNA) from the
audited financial statements most closely relates to the operating budget, but there are different
rules and conventions employed. Several of those differing rules include:
•
GAAP financial statements classify general fund appropriations as non-operating
income, while the operating budget classifies this as operating income.
•
GAAP financial statements are prepared on an accrual basis, while the operating
budget is prepared on a cash basis, consistent with the state’s operating budget.
•
GAAP accounting rules require tuition revenues to be shown net of scholarship
allowances. The operating budget shows tuition and fees as gross income and the full
amount of all student aid as an expense in order to highlight both the revenue impact
of tuition planning, as well as the corresponding student financial aid requirements.
•
GAAP financial statements recognize depreciation expense 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, due to the state funding a significant
portion of maintenance as a capital outlay appropriation. Academic Division
3
expenditures for major repair or renovation work occur within the reserve accounts –
and off the operating budget. Alternatively, the Medical Center’s operating budget
includes funded depreciation for buildings and equipment similar to the GAAP
treatment.
•
GAAP statements reflect actual endowment investment performance. The operating
budget includes the planned distribution from the endowment.
•
Federal Family Education Loan Program is included in the GAAP statements as
federal grants and contracts, but excluded from the annual operating budget.
•
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, an overview of actual results as compared to the
budgeted financial plan for the most recently ended quarter is provided. 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 in order to provide a useful basis for
comparison to the previously approved budget plan.
PERFORMANCE MEASUREMENT
In the past, the Academic Division has reported its performance on a set of measures
called the Reports of Institutional Effectiveness to the State Council of Higher Education in
Virginia. This report provides meaningful information on the academic quality and operational
efficiency of the University. Selected measures from the most recent report are on page 47.
With implementation of the Restructured Higher Education Financial and Administrative
Operations Act, the Reports of Institutional Effectiveness will be replaced with Institutional
Performance Standards. Performance against these standards will determine the extent to which
the University receives a number of financial incentives, including interest on tuition balances,
credit card rebates, and rebates of transaction fees on sole source procurements from vendors not
registered with the state’s electronic procurement program. The final set of Institutional
Performance Standards is expected to be approved with the 2006-08 Appropriation Act.
The Medical Center has established a benchmark group of 26 academic medical centers
which are members of the University Health System Consortium and are similar to the
University of Virginia Medical Center in bed size and case mix index. Periodically, the Medical
Center compares itself against these peers on several critical indicators. These measures are
presented in the appendix on page 53.
4
ACADEMIC DIVISION BUDGET
BUDGET DEVELOPMENT
The first step in developing an expenditure budget is to estimate salary and fringe benefit
increases for the upcoming year. Second, 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
2005. The target development process is designed to give maximum flexibility to vice presidents
in the allocation of resources among their activities. Expenditure budgets for other sources
(gifts, endowment, grants, contracts, facilities and administrative (F&A) 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.
At the time this budget was developed, the General Assembly had not reached agreement
on a state budget for the 2006-08 biennium. To develop the University’s 2006-07 budget, we
have assumed – based on common funding actions in the individual House and Senate budgets –
the University’s state budget will include the following new items:
•
•
•
•
•
$3.7 million in new base adequacy funds;
$0.6 million for unavoidable cost increases (healthcare, property insurance, etc.);
$0.3 million for undergraduate financial aid;
3 percent salary increases for administrative and professional faculty, part-time
teaching and research faculty, and graduate teaching assistants (GTAs); and
4 percent salary increases for classified and full-time teaching and research faculty.
One possible scenario is that the General Assembly will approve a budget which is
simply a continuation of the 2005-06 budget without the increases and salary authorizations
outlined above. In this event, the University will have the November 2006 salary reserve funded
from tuition to offset the loss of anticipated general funds. This budget plan does not incorporate
potential pass through funding items for the Center for Politics, Blandy Farm, the Virginia
Foundation for Humanities, or the Commonwealth Graduate Engineering Program. It also does
not incorporate any funding from the Higher Education Research Initiative at this time.
A $6.2 million salary reserve is set aside from projected general funds ($2.8 million) and
non-general funds ($3.4 million) for the projected state and local general salary increases.
Departmental budgets funded from state and local general sources have been adjusted for
increased benefit costs of $2.73 million.
Departmental budgets for other sources (gifts, endowment, grants, contracts, indirect cost
recoveries, and auxiliaries) reflect the proposed salary and benefit increases, 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
5
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, state general funds, and private funds provided funding to
meet the highest priority needs in 2006-07. The University was able to meet mandatory
commitments, re-establish a reserve for emergency needs, and address some critical needs. More
information concerning the 2006-07 addenda allocation is included in the expenditure budget
analysis later in this document.
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
Access UVa
In the continued implementation of Access UVa in 2006-07, the University will offer 100
percent of demonstrated need to all undergraduates and will eliminate loans and work study for
first-, second-, and third-year students whose families are at or below 200 percent of poverty
level ($38,700 for a family of four in 2005). Additionally, first- and second-year students and
Fall 2005 and 2006 transfers from the Virginia Community College System will be guaranteed
that their loan burden due to demonstrated financial need will not exceed 25 percent of the cost
of four years of attendance for an in-state student ($18,000 for students who entered in Fall 2005;
$19,500 for students entering in Fall 2006).
The 2006-07 full cost of all phases of Access UVa will be $51 million. Central
University sources will provide $16.7 million ($11.5 million from tuition and $5.2 million from
local funds) in the current year. It is projected that with full implementation of the program in
2008-09, the central University investment will be over $20 million. The remaining portion of
the total cost, $34.3 million in 2006-07, is funded from restricted gifts and endowments, athletic
grants, general funds, outside grants, federal grants and loans, and work study.
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. Since that time, supplements
approved by the Board have allowed us to close the gap between the average teaching and
6
research faculty salary at the University and at the institution holding the 19th position of AAU
institutions from $5,300 in 2003-04 to $1,410 in 2005-06.
For 2006-07, we have assumed the General Assembly will approve a 4 percent average
salary increase for full-time teaching and research faculty. The University’s proposed budget
includes a reserve for a recommended supplemental increase of 1.0 percent for all faculty. We
project that this total increase of 5.0 percent for teaching and research faculty should eliminate
the gap between the University’s average faculty salary and the 19th position – achieving the goal
set out by the Board in 2004-05.
We have also reserved a fourth 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 for educational and general (E&G) buildings. The Board agreed that the
University should move to establish on-going maintenance investments that will protect our
physical assets and make one-time investments to reduce the backlog to a reasonable level based
on industry standards.
In order to establish on-going maintenance investments to protect the University’s
physical assets, our goal – based on industry guidelines – is to invest two percent of the asset
value annually into maintenance. For the E&G buildings, this will require increasing annual
maintenance expenditures by $1.5 million per year for the next ten years. In addition, we must
continue to budget two percent of the value of any new facilities that come on line. For 2006-07
we have allocated $1 million of the second installment. The remaining $500,000 is being held in
a central reserve pending a second quarter review of tuition collections. If tuition collections are
above our conservative projection, the $500,000 will be allocated.
In order to bring the maintenance backlog down to a level where 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 order to fund this $73
million, we will be looking to assistance from the state through its Maintenance Reserve and
capital outlay programs, student fees, private funding, and debt financing. The pending 2006-08
Appropriation Act includes an increase of nearly $5 million for the biennium ($2.5 million in
each year) in the allocation to the University under the Maintenance Reserve Program.
Additionally, we have initiated a student fee – currently at $15 for a full-time student – to
provide annual funding to support building renewal projects related to this initiative.
The University is in the process of identifying an initial set of E&G buildings to address
critical maintenance needs with this one-time funding over the next three years. The next step
will be to address research and infrastructure maintenance deficiencies. We have also made
significant progress in quantifying the condition of facilities in the auxiliary units, the Medical
Center, and Wise. Over the next year, we will complete a long-term plan to systematically
address these needs.
7
Base Budget Adequacy
The budget plan includes $3.4 million in additional general funds in 2006-07 to assist in
addressing base budget adequacy. These new resources, along with tuition and Higher
Education Equipment Trust funds, have enabled the University to make several investments in
key academic areas. We have addressed base budget needs in the College of Arts & Sciences
with a $5.2 million base budget increase; this is year two of a five year plan to address the fact
that the College absorbed about 75 percent of the total undergraduate enrollment growth between
1991 and 2004 and will absorb much of the future growth. The University has increased the base
budget of the School of Engineering and Applied Science by $1.5 million and provided $750,000
to Alderman Library as the cost of providing a world class research library continues to rise.
About $1.25 million of these base budget allocations will be funded with either Higher
Education Equipment Trust funds or from excess tuition collections if actual collections exceed
projected collections. Base budget adequacy funding also covers technological, administrative,
and physical plant operating expenses, including a $1.2 million increase in utility costs for
educational and general facilities in 2006-07.
Diversity Commission
The 2006-07 budget continues to address diversity with the full and permanent funding of
the Office of the Vice President and Chief Officer for Diversity and Equity.
International Programs
The International Studies Office study abroad program offerings have grown from five
faculty-led programs in 2001 to 27 faculty-led programs and three program affiliates today. At
least two new summer and four new January Term programs will be offered in 2006-07. Longstanding transfer-credit study abroad programs include Beijing, Lima, London, Lyon, and
Oxford. Summer and January Term direct-credit study abroad programs are currently located in
the Bahamas, Brazil, China, Costa Rica, France, Ireland, Italy, Jamaica, Morocco, Nicaragua,
South Africa, Spain, and Tibet. In 2006-07, affiliated programs will include the NYU/UVA
London program, the American University of Cairo program, and a language based program in
Sienna, Italy. Additionally, in summer 2006, the University will partner with the Institute for
Shipboard Education to become the academic home for the Semester at Sea program.
Research Enhancement Initiative
In February 2004, the Board approved an initiative to enhance research at the University
over the next five years. 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 to meet the goal of adding ten world class faculty. 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 has reviewed more than 175 applications from a variety of disciplines and schools, and
8
narrowed the field to the top 18 faculty based on research excellence in their field, reputation,
and potential fit at the University. From that list of highly desired candidates, the University has
hired one faculty member, received two oral commitments, and continues to heavily recruit five
strong potential hires.
The first successful hire under the Board’s initiative is Joseph C. Campbell who arrived
at the University in January. Dr. Campbell, a renowned innovator in electrical engineering and
nanotechnology, is widely credited for having developed the modern-day detectors of laser light
used in fiber optics systems in telephone and other telecommunication systems. He brought with
him a $3 million laboratory and several graduate students and postdoctoral researchers.
Additionally, ground has broken for the construction of the Carter-Harrison Research
Building (formerly MR-6), to be located south of the University hospital, while the Advanced
Research and Technology facility at Fontaine Research Park, to be constructed by the University
of Virginia Foundation, is in the design phase.
Governor Warner’s proposed 2006-08 budget included a significant investment of
resources into the Higher Education Research Initiative; the individual budgets passed by the
House and Senate, while modifying a few of the items, endorse the concept of a significant,
strategic investment of Commonwealth resources. We expect that the final 2006-08 budget,
when approved, will provide resources which will help to make the Board’s research
enhancement initiative even more successful. General fund resources will provide for operating
needs and graduate financial support, Higher Education Equipment Trust Fund allocations, and
capital outlay.
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
2005-06, the student information phase of the project, the Student System Project (SSP),
conducted a series of 17 cross-University workshops, analyzed student-related business
processes and requirements, and consulted with peer institutions. These activities culminated in
the selection of PeopleSoft Campus Solutions, release 8.9, as the student system software. A
Request for Proposal for a consulting partner will be released shortly. Plans for 2006-07 include
resolution of critical strategic and policy issues, development of a detailed project plan and
budget, detailed software analysis, business process redesign, and hiring and training of technical
and functional personnel. After approval of the detailed project plan developed in cooperation
with the University’s implementation partner(s), and upon the confirmation of resources and
budget, implementation will begin.
The Board previously approved a budget for the Integrated Systems Project which
included a preliminary estimate of $15 million for the student system phase. Through 2005-06,
$3.3 million has been allocated to this project; in 2006-07, $9.6 million has been included in the
operating budget. It is expected that a revised project budget will be brought to the Board at a
future meeting. At this time, we are expecting to use accumulated balances from investment
earnings to fund this project.
9
Central Development/Alumni Engagement
A continuing challenge is the appropriate funding source of development and alumni
engagement activities. The permanent budget for central development activities is $11.6 million;
in 2005-06, the University funded, on a temporary basis only, an additional $4.2 million to
support the capital campaign, strengthen alumni activities, and develop constituent relations; in
2006-07, an additional need of $1 million permanently and $1.5 million temporarily is projected.
The total of all these needs in 2006-07 is $18.3 million. These activities are funded from the
endowment distribution on the local general endowment, projected to be $12 million in 2006-07.
The gap in the needs versus available unrestricted endowment funding is funded, on a short-term
basis, from accumulated balances from investment earnings. However, a long-term plan is
needed to address the appropriate source of central development activities given the fact that 0.5
percent of gifts raised in the $3 billion capital campaign will benefit the unrestricted endowment.
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 2005-06, the School of Medicine has noted progress
in several important areas:
•
The Faculty Development Program implemented several new programs (the Dean’s
Leadership Seminar Series, Faculty Transitions, and “The Healer’s Art” for physicians)
and enhanced web resources for Promotion & Tenure preparation, academic guidance,
professional development, coping in academic-medical environment, etc.
•
Two curriculum innovations have become national models. “Cells to Society” is a threeday introductory course for first-year students 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). The Clerkship Clinical Skills Education Program is a grantsupported model program designed to enhance basic clinical skill performance.
•
The Research Advisory Committee established a space policy and space management
program to ensure that no departments were below the minimum established threshold of
$300 per square foot in extramural funding.
•
The school implemented the Coulter Foundation Translational Research Partnership, a 5year program to fund and bring to market promising translational projects.
•
The Access, Service, and Communication Committee has been successful in helping 60
percent of the primary care clinics and 50 percent of the specialty care clinics meet the
target of providing non-urgent, initial appointments within 14 days.
10
During 2006-07, the School of Medicine will continue to focus on improvements in
patient access and satisfaction, strengthening research support, and fostering innovative clinical
programs, as well as working with Health System Development to formulate a development
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, 2006, the
University has received $108.2 million. The University’s next allocation, $8.7 million, is
anticipated for July 2006. As in 2005-06, the University plans to allocate the 2006-07 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 2006-07 budget.
The Higher Education Research Initiative mentioned earlier includes a special allocation
of Equipment Trust Funds, ranging from $7.6 million in the Governor’s proposed budget to $26
million in the House’s proposed budget.
ACADEMIC DIVISION OVERVIEW OF OPERATING SOURCES
In a change in presentation from the 2005-06 budget summary, the schedule of Academic
Division Operating Sources on the following page schedule provides total available resources to
the Academic Division based on projected cash inflows from general funds, tuition and fees,
sponsored research, gifts, endowment distributions, auxiliary revenues, and other. In prior years,
the budget document included only the source of projected expenditures in a balanced budget.
Alternatively, this schedule demonstrates total available new revenues rather projected for
expenditure or not.
The schedule provides projected gross cash collections for each fund source (a total of
$1.32 billion) plus the transfer of gifts from the foundations for operating purposes ($64.3
million). Then the portion of these resources which will not be available for the operating
budget are subtracted: transfers to capital reserves or projects ($110 million), gifts-in-kind or
transfers to endowments ($22.7 million); and philanthropic gifts collected directly by
foundations ($150.1 million). These adjustments result in net available resources for the
operating budget of $1,098 million for 2006-07. A description of each fund source begins on
page 14; additional budget detail on funding sources can be found in the supplemental
information on page 41.
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ACADEMIC DIVISION OPERATING SOURCES
(in thousands)
2006-07
Proposed
Budget
2005-06
Projected
Results
Change
%
Change
2004-05
Actual
Results
2005-06
Approved
Budget
(old
format)
(old format)
Sources of Available Funds, net of transfers to capital reserves
State general fund appropriation
Less: transfers to capital reserves/projects
State general fund appropriation for operating plan
$ 204,442
(52,805)
151,637
$ 152,499 $ 51,943
(11,693)
41,112
140,806
10,831
34.1%
351.6%
7.7%
$ 139,559
$ 131,795
Tuition and fees
Less: transfers to capital reserves/projects
Tuition and fees for operating plan
300,936
(1,185)
299,751
276,533
(546)
275,987
24,403
(639)
23,764
8.8%
117.0%
8.6%
276,654
$60,685
Sponsored research direct costs & F&A recoveries
Less: transfer to capital reserves/projects
Sponsored research for operating plan
287,117
(11,300)
275,817
291,649
(11,600)
280,049
(4,532)
(300)
(4,232)
(1.6%)
(2.6%)
(1.5%)
299,666
277,006
86,887
85,254
1,633
1.9%
66,684
54,477
230,060
(150,100)
(22,700)
(12,200)
45,060
64,300
109,360
211,933
(137,200)
(20,800)
(11,200)
42,733
60,700
100,159
18,127
12,900
1,900
1,000
2,327
3,600
9,201
8.6%
9.4%
9.1%
8.9%
5.2%
5.9%
9.2%
65,548
59,787
32,349
31,819
530
1.7%
32,583
19,668
175,002
(32,716)
142,285
163,586
(30,211)
133,375
11,416
2,505
8,910
7.0%
8.3%
6.7%
160,481
157,856
$47,364
4.5%
$1,041,174
$961,274
Endowment distribution
Projected philanthropic cash flow
Less: gifts directly to foundations
Less: gifts-in-kind and transfers to endowments
Less: transfers to capital reserves/projects
Net philanthropic cash flows for operating plan
Plus: transfers from foundations
Net gifts available for operating plan
Sales, investment & other
Auxiliary enterprises, including private sources
Less: transfers to capital reserves/projects
Net auxiliary enterprises for operating
Total Sources of Available Funds
$1,098,086
$1,050,722
ACADEMIC DIVISION OVERVIEW OF OPERATING USES
As shown on the following page, the Academic Division’s projected spending plan or
uses of operating funds is $1,069.9 million for 2006-07. After a planned usage of accumulated
investment earnings to support several centrally funded items, the operating plan shows a surplus
of $52.9 million for 2006-07. In reality, these funds are restricted gifts and endowment income
which will not be spent during the year due to donor restrictions or future commitments. For the
most part, these funds are not unrestricted or available for normal operational needs. A
description of each fund source begins on page 18; additional budget detail on funding sources
can be found in the supplemental information on page 45.
12
ACADEMIC DIVISION OPERATING USES
(in thousands)
2006-07
Proposed
Budget
2005-06
Projected
Results
Change
$ 269,010
271,227
106,947
23,393
68,195
62,797
105,900
$ 248,545
274,941
106,377
22,428
67,618
52,684
101,284
$ 20,465
(3,714)
570
965
577
10,113
4,616
36,949
34,286
18,549
51,643
1,048,896
33,359
33,826
17,452
47,932
1,006,446
9,600
7,540
1,000
2,871
21,011
%
Change
2004-05
Actual
Results
2005-06
Approved
Budget
(old format)
(old
format)
8.2%
(1.4%)
0.5%
4.3%
0.9%
19.2%
4.6%
$ 245,460
283,432
103,388
21,825
63,718
53,831
101,019
$ 228,171
253,720
99,441
20,607
54,922
49,011
95,190
3,590
460
1,097
3,711
42,450
10.8%
1.4%
6.3%
7.7%
4.2%
32,531
32,687
17,452
47,256
1,001,453
31,218
30,982
15,905
46,396
925,563
3,000
3,000
6,600
7,540
1,000
2,871
18,011
220.0%
n/a
n/a
n/a
600.4%
7,433
1,000
(411)
31,297
11,022
-
1,069,907
1,009,446
60,461
6.0%
1,040,772
925,563
28,179
41,276
(13,097)
(31.7%)
403
5,586
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
Operating reserves and temporary allocations
Temporary allocation to student system
Reserve for salary increases
Reserve for Access UVa/tuition shortfall
Reserve for base operating needs and contingencies
Reserves for renewal, replacement, and debt
Total operating reserves and temporary allocations
Total Uses of Available Funds
Net Sources and Uses of Operating Funds
Planned application of appreciation of investment
balances
Adjusted Net Sources and Uses of Operating Funds
24,731
9,179
15,552
169.4%
-
-
$ 52,910
$ 50,455
$ 2,455
4.9%
$ 403
$ 5,586
The charts below demonstrate which of the operating revenues will provide the resources
to fund the operating expenditure budget.
2006-07
State GF
14.2%
Private
14.2%
2005-06
Auxiliaries
13.2%
Other
4.6%
State GF
13.9%
Other
3.8%
Private
14.0%
Tuition & Fees
28.0%
Grants &
Contracts
25.8%
Auxiliaries
13.1%
Tuition & Fees
27.3%
Grants &
Contracts
27.9%
13
While net gifts and endowments make up nearly 18 percent of the available resources on
the Academic Division Operating Sources schedule on page 12, it is only expected that gifts and
endowment distributions will fund 14 percent of the Academic Division Operating Uses schedule
on page 13 due to amounts that are not projected for expenditure in 2006-07.
In 2006-07, tuition and fees (28.0 percent) surpass the reimbursement of direct and
indirect costs of grants and contracts (25.8 percent) to provide the greatest proportion of the
operating budget, followed by gifts and endowment distributions (14.2 percent) and the state
general fund appropriation (14.2 percent). Auxiliaries will account for 13.2 percent of the
operating budget, and the remaining 4.6 percent is generated from investment income,
accumulated investment balances, and other miscellaneous revenues.
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 following chart shows the University’s standing
among peer public institutions using the 2005-06 state appropriation for each school:
School
University of North Carolina - Chapel Hill
University of Michigan - Ann Arbor
University of Maryland
University of Virginia
2005-06 GF per
In-state Student
$21,771
$16,311
$14,604
$9,939
As mentioned previously, the General Assembly had not approved a 2006-08
Appropriation Act when this budget was developed, so we have assumed funding and salary
actions consistent with those included in the individual House and Senate budgets. Using these
assumptions, the 2006-07 budget for the general fund appropriation will increase $10.8 million
or 7.7 percent. This increase includes $2.8 million for the general fund portion of the approved
November 2006 salary increases, $3.7 million for base adequacy support, the annualization of
November 2005 salary increases, $633,000 for healthcare, property insurance, and new facilities,
and additional undergraduate financial aid.
It is expected that the Eminent Scholar matching program will remain at $2.9 million, for
a match of about 18¢ on the dollar, while the University adds over half a million dollars or
another 3¢ per dollar from private resources.
Non-general Funds
Non-general funds are resources generated by the University such as tuition, payments
14
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 budget reflects tuition increases previously approved by the Board of Visitors:
TUITION AND E&G FEES
Undergraduate
Graduate
Darden
Law
Medicine, average increase
In-State
% Increase
9.9%
7.7%
8.4%
8.5%
5.1%
Out-of-State
% Increase
7.7%
0.7%
7.2%
7.2%
3.6%
Tuition and fee revenues are expected to increase $23.8 million or 8.6 percent over the
projected 2005-06 budget to $299.8 million. The 2006-07 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 approved enrollment growth plan shows that Fall 2006 on-grounds enrollment will
total 20,282 students. Of the 13,275 undergraduate students, 69 percent will be Virginians. The
off-grounds enrollment projection for the fall is 3,350 students. It is projected that the first year
class will include 3,100 students, while 515 students will transfer to the University.
Approximately $17.2 million of the total tuition increase is allocable to increases in
undergraduate, graduate, Medical School, Summer Session and the School of Continuing and
Professional Studies tuition rates. Approximately $5.2 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. This includes the new Darden
MBA for Executives program.
Grants, Contracts, and Facilities and Administrative (F&A) Recoveries
During 2005-06, the University experienced a decline in federal grants and contract
awards, particularly from the National Institutes of Health (NIH). It is projected that 2006-07
will continue to show a decline in NIH awards. It is expected that the National Science
Foundation (NSF) budget will be increasing; however, because the majority of our extramural
funding is through NIH, we do not expect increases in NSF grants to offset the decrease in NIH
support. 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 decrease by 1.6 percent over the 2005-06 revised budget. It is
estimated that facilities and administrative (F&A) recoveries will decrease by a similar
percentage.
Total grants, contracts, and F&A recoveries are budgeted at $275.8 million in 2006-07.
F&A recoveries, after the transfer of $11.3 million to capital reserves, will comprise $54.3
15
million of that total, with direct costs funded from grants budgeted at $221.5 million.
Endowment Income and Gifts
Approximately $87 million will be distributed from the endowment to the Academic
Division in 2006-07. This is a 1.9% increase over the 2005-06 distribution, due to a planned
increase of 3.6 percent for class A shares and no increase for class B shares.
Based upon historical levels of expenditure, we project that $71.9 million will be
expended in 2006-07 for educational and general programs and student financial aid. The
majority of the $15 million that will be distributed but not expended is restricted and is not
available for general institutional commitments. These amounts will not be expended due to
donor restrictions, unfilled professorships, or accumulations for future commitments.
University Development projects cashflow from philanthropy will reach nearly $233.8
million in 2006-07 with the September 2006 public kick-off of the capital campaign. Of this
amount, it is expected that $150.1 million will be generated directly by the University’s affiliated
foundations. Of the remaining $83.7 million collected by the Rector and Visitors, $15.1 million
will be invested in the pooled endowment fund, $12.2 million will be transferred to capital
projects, and $7.6 million will be in the form of non-cash gifts-in-kind. As a result, just under
$50 million in new gifts collected in 2006-07 will be available for operations. It is projected that
the affiliated foundations will continue to transfer gifts to support the schools’ operating budgets,
about $64.3 million next year.
The new gifts of $50 million plus the transfers from the foundations will provide about
$114.3 million for operations next year. Based on estimates provided by the schools and
historical trends, about $80.3 million will be expended in 2006-07, up from the 2005-06 forecast
of $70.5 million. Similar to the unexpended endowment income, nearly all of the $34 million
which will not be spent in 2006-07 is restricted by donors, to be transferred to quasi
endowments, or may be reserved by schools for future commitments or capital projects.
Private support for athletics operations, nearly $4 million in 2006-07, is included in the
athletics operating revenues. Athletics will also generate $10.7 million in gifts during 2006-07
for athletic grants-in-aid.
Other Sources of Funds
Other sources including current fund investments and sales and services of educational
departments will contribute $24.4 million towards the expenditure budget. Finally, in order to
meet one-time commitments to the student system project and on-going central development and
alumni engagement expenditures, approximately $24.7 million from accumulated investment
earnings will need to be used. The accumulated investment earnings were the result of a Board
action four years ago to invest a portion of our current funds in the pooled endowment fund.
Discussion of auxiliary operations begins on page 21.
16
HISTORICAL GROWTH IN THE ACADEMIC DIVISION BUDGET
The Academic Division expenditure 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 for Academic Division
expenditures.
10 yr.
Inc.
Law/Darden/Comm T&F 151%
15.1%
Investments/Other
187%
18.7%
(millions)
$1,000
$800
Avg.
Inc.
Grants/Contracts
88% 8.8%
Auxiliaries
83% 8.3%
Gifts/Endowment
68% 6.8%
Other Tuition/Fees
85% 8.5%
State General Fund
7% 0.7%
$600
$400
$200
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
$0
Total
71% 7.1%
The expenditure budget has increased $444 million or about 71 percent over the past ten
years, for an annual growth rate just over 7 percent. However, the significant growth has been
concentrated in areas other than core instructional programs. The operating expenditure budget
for core instructional and support programs (funded from state general fund appropriation and
tuition revenues other than those generated by the Law School, the Darden School, and the
McIntire graduate programs) has increased by $117 million or 43.9 percent over the past ten
years, for an annual increase of about 4.4 percent. The largest percentage increase (151 percent)
is from 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.
$287 million, or 65 percent of the growth in expenditures over the past ten years, has
been funded from three primary sources:
•
Grants, contracts, and F&A recoveries have increased $129 million or 88 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 operations, fully funded from auxiliary revenues, have increased
over $64 million or 83 percent over the period. These revenues are used for the direct
17
and indirect cost of athletics, bookstores, housing, dining, and other activities which
support faculty, staff, and students, but not core educational activities.
•
Expenditures from gifts, endowment distributions, investment income, and other fund
sources have increased nearly $94 million or 87 percent over the ten-year period.
These fund sources, 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.
OPERATING BUDGET BY EXPENDITURE CATEGORY
Approximately 63 percent of the Academic Division’s total operating budget will be
expended on personal services as shown to the right. When financial aid and auxiliary
operations are excluded, approximately 76 percent of
educational expenditures are for the compensation,
2006-07 By Expenditure Category
including fringe benefits, of faculty, classified staff,
wage employees, and graduate teaching and research
assistants.
Other
The University has reserved $6.2 million to
fund the state’s authorized salary increase for all
employees, plus a $1.1 million reserve to increase
the competitiveness of faculty compensation with a
recommended 1.0 percent supplemental increase for
faculty and a $250,000 pool for classified staff.
36.7%
Wages
3.8%
Faculty
Comp.
35.7%
GTA/GRA
2.7%
Staff
Comp.
21.1%
OPERATING BUDGET BY ACTIVITY
The following pie charts show the percentage of the total operating budget dedicated to
each major activity:
2005-06
2006-07
Financial Aid
9.9%
Financial
Aid
10.0%
Auxiliaries
13.2%
Other
14.6%
Auxiliaries
13.1%
Other 14.5%
Instruction
24.2%
Instruction
25.9%
Academic
Support
10.8%
Academic
Support
11.0%
Research &
Public Serv.
25.4%
Research &
Public Serv.
27.4%
Educational and General Budget
Educational and general (E&G) is a
18
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 2006-07 instructional budget, including items held in the operating reserves, is $31.7 million
or 13 percent over the 2005-06 forecast. This increase includes $5.8 million in the selfsupporting schools related to tuition increases (Law, Darden, and McIntire graduate programs); a
$5.2 million allocation of base operating funds to the College of Arts & Sciences; and a $1.5
million allocation to the School of Engineering and Applied Sciences for base operational needs.
The annualization of the November 2005 salary increase, the projected current year cost of the
November 2006 salary increase, and increased fringe benefit costs add about $8.4 million over
the 2005-06 budget. Addenda funding includes $300,000 to enrich the Provost’s Loan Line
program, which provides critical short-term funding for diversity and spousal faculty hiring;
$150,000 to study the expansion of the Bachelor of Interdisciplinary Studies to Northern
Virginia, particularly in light of the University’s commitment to Governor Warner to increase the
number of VCCS transfer students; and $132,000 to increase the number of Nursing
undergraduates. Funds totaling $4.0 million are held in the President’s Fund for Excellence and
in a normal operating reserve.
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 2006-07 research and public service budget,
net of salary increases held in reserve, is projected to decrease by $3.5 million or 1.3 percent
over the 2005-06 forecast. Since the majority (86 percent) of sponsored research falls into this
category, this decrease is primarily related to the expected decrease in sponsored research awards
mentioned earlier.
Academic Support
The academic support program encompasses the libraries, academic computing, and
academic administration. The budget for 2006-07, including the Student System budget, salary
increases, and other items held in reserve, is projected to increase by 7.8 percent or $8.5 million.
In addition to salary and fringe benefit increases, funding for academic support is increasing for
academic computing ($1 million), library support ($850,000), and the student system
implementation project. Addenda funding includes $239,000 for on-going program assessment
in the schools, $118,000 for academic compliance initiatives, and $43,000 for a transfer
19
coordinator in the Admissions office.
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, including salary
increases held in reserve, for 2006-07 is projected to increase by $1.2 million or 5.4 percent. The
increases are related to salary and fringe benefit increases.
General Administrative Activities
This category includes the executive, financial, administrative, logistical, and fundraising
activities of the University. The general administration budget, including salary increases and
other items held in reserve, is projected to decrease by $1.9 million or 2.7 percent in 2006-07
over the revised budget. The revised 2005-06 budget includes one-time charges related to
electronic procurement fees charged by the state, the purchase of a new electronic procurement
system, and the upgrade of the Oracle financial and human resources systems. Addenda
allocations have been made to provide additional support to the Integrated Systems Deployment
and Support ($327,000); the Office of the Vice President for Management and Budget
($149,000), the Office of the Vice President for Diversity ($90,000), the Office of Sponsored
Programs ($75,000); the President’s Office ($48,000); and Audit ($36,000).
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, including
items held in reserve, is projected to increase $11 million or 20.8 percent in 2006-07 compared to
the 2005-06 revised forecast. The revised budget includes a temporary decrease of $2.6 million
related to the timing of expenditures in the prior year ended June 2005. Permanent increases in
2006-07 include: $1.5 million for salary and fringe benefit increases, $1.5 million to address
maintenance deficiencies ($500,000 of which is being held in reserve pending review of first
semester tuition collections), $1.2 million to fund higher utility costs, $1.0 million for
maintenance of new facilities; $1.0 million for leases and property management costs, and
$360,000 for higher property insurance premiums; and $120,000 for security at the
Harrison/Small Special Collections Library.
STUDENT FINANCIAL AID
The student financial aid budget, nearly $106 million in 2006-07, includes graduate and
undergraduate student scholarships, fellowships and other forms of student assistance supported
from state general funds, tuition, endowment income, gifts, and federal sources. This budget
excludes work study, loans, or aid provided directly to students by third parties.
Financial aid awards to undergraduate students are primarily based on standard
20
calculations of the student's financial need based upon the principles of Access UVa. For
graduate students, the University is committed to working with schools to improve the flexibility
and attractiveness of the University’s graduate support packages in order to become more
competitive in attracting top graduate students. Support to graduate students is based upon both
employment as a graduate teaching or research assistant and merit.
Nearly $37 million, 13 percent of tuition revenue from degree programs, is allocated to
undergraduate and graduate financial aid. The University re-allocates tuition revenues to support
financial aid through the following programs:
•
$11.9 million to support Access UVa.
•
$8.7 million to fund the cost of in-state tuition and fees and a healthcare voucher for
eligible graduate teaching assistants.
•
$6.2 million to provide the differential between in-state and out-of-state tuition and
fees for out-of-state graduate students who are employed in a significant academic
capacity, earning at least $5,000 during the fiscal year.
•
$10.2 million for graduate fellowships, including Law and Darden students.
The 2006-07 budget includes funding from institutional private resources of: $5.2
million for Access UVa, $1.6 million for an undergraduate merit scholarship program, and
$816,000 for the President's Fellowships, our most prestigious graduate fellowship.
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 related 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. The Commonwealth requires that auxiliaries be charged an overhead rate to
support the general and administrative services provided by E&G operations. In 2006-07, the
auxiliaries will be charged 7 percent of their operating expenditures – a total of $4.8 million will
be recovered by E&G activities. In return, auxiliaries are credited with interest earned on their
cash balances.
Revenue projections were developed using Board-approved enrollment projections,
housing and dining rates, and mandatory non-E&G fees. Increases in student fees support cost
increases in University Transit, Recreational Facilities, Athletics, Student Health, and Newcomb.
Revenues from all auxiliary enterprises are estimated to total $175 million in 2006-07, an
increase of 7 percent over the 2005-06 projected budget. Nearly $33 million of the revenues will
be transferred to reserves for renewal, replacement, and debt service, leaving net revenues of
$142.3 million available for operations. It is projected that auxiliary expenditures will total
$141.4 million, leaving a small surplus of $900,000 or about 0.5 percent of gross revenues. The
21
University continues 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 11.9 percent to $40.8 million in 2006-07. This
increase reflects higher basketball revenues largely attributable to increased seating offered in the
John Paul Jones Arena, higher football revenues, athletic student fee increases, higher Cavalier
Sports Marketing radio revenues, and continued success in generating private gifts for
operations. The 2006-07 operating expenditures are expected to be $36.9 million, exclusive of
$10.7 million in student athlete scholarships, an increase of $3.6 million over the 2005-06
revised budget. In addition to supporting normal increases associated with the anticipated salary
increases, the increased available funds are directed towards improvements in the program
support areas facilities, video services, human resources and contractual obligations in Football,
both Men’s and Women’s Basketball, Baseball, Men’s and Women’s Tennis, Field Hockey and
Wrestling.
As shown on the schedule below, Athletics plans to transfer $2.3 million of its remaining
revenues to its renovation and repair (R&R) and expansion reserves in 2006-07.
ATHLETIC RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$786,400
827,700
881,000
$733,100
Expansion
Reserve
$662,300
1,518,800
1,485,800
$695,300
Total
$1,448,700
2,346,500
2,366,800
$1,428,400
With $2.4 million in planned expenditures, Athletics will have a remaining $1.4 million
reserve, primarily earmarked as a reserve for continuing debt service for Scott Stadium
Expansion and the start of a reserve for the Arena.
In addition to debt service requirements totaling $1.086 million, the Athletics budget
plans for the following expenditures from its reserves in 2006-07: $400,000 annual transfer to
the Arena project, $300,000 for University Hall Locker Rooms, $206,000 for University Hall
repairs, $200,000 for the Boathouse and Dock Replacement, $125,000 John Paul Jones Arena
equipment contingency and $55,000 for Crew and Softball improvements.
Bookstore
Bookstore revenues are increasing by 1 percent to $36 million from the 2005-06
projected budget, while Bookstore expenditures increase 1.4 percent to $34.3 million. The
Bookstore will make its annual transfer for required debt service of $647,100 as well as its
annual transfers of $250,000 to the Bookstore Endowment for Excellence, $30,000 to Student
Council, and $15,000 for scholarships.
22
As shown on the below schedule, the Bookstore will transfer, on behalf of the Bookstore
and Cavalier Computers, $516,000 to its reserves. With $205,000 in planned expenditures, the
Bookstore will have a remaining $4.2 million reserve, primarily earmarked for expansion of the
central grounds bookstore.
BOOKSTORE RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$2,630,100
139,000
205,000
$2,564,100
Expansion
Reserve
$1,290,600
377,000
$1,667,600
Total
$3,920,700
516,000
205,000
$4,231,700
In 2006-07, 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 8.8 percent to $31.6 million, primarily related to the
housing rate increases approved in February 2006. Operating expenditures are increasing to
$18.5 million, related to higher operating costs, including compensation, volatility in utility
prices, and increased preventive maintenance.
As shown below, Housing plans to transfer $9.1 million to its reserves in 2006-07. 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 $5.8 million in planned expenditures,
Housing will have remaining a $15.4 million reserve. Most of this reserve will be committed to
the Alderman Road Dormitory Replacement project, which is scheduled to begin in 2006-07
with the construction of a new dormitory to use as swing space for the remainder of the project.
HOUSING RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$ 1,107,000
5,117,000
5,364,000
$ 860,000
Expansion
Reserve
$ 10,928,000
3,996,000
400,000
$14,524,000
Total
$ 12,035,000
9,113,000
5,764,000
$15,384,000
In 2006-07, the Housing reserves support both Student Housing and Faculty and Staff
Housing. Planned expenditures from the reserves include: $2.6 million to address deficiencies
identified in the facilities audit, $600,000 for maintenance in the Alderman Road dormitories,
$400,000 for planning the Alderman Road Dormitory Replacement project, and $2.1 million for
numerous other repair and renovation projects.
Parking and Transportation
23
Parking and Transportation (P&T) revenues are increasing by 6.4 percent to $15.1
million in 2006-07. In addition to the approved student fee increase, this reflects a monthly
increase, ranging from $1 to $6, in permit parking rates. P&T operating expenditures are
increasing by 15.8 percent to $11.2 million, resulting from higher operating costs, including
compensation and fuel. Included in the operating expenditures is the required annual debt
service associated with parking structures totaling $2.7 million.
As shown on the below schedule, P&T plans to transfer $1.6 million of revenues to its
reserves in 2006-07. With $3.2 million in planned expenditures, P&T projects ending fiscal year
2007 with a $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, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$2,376,100
1,186,000
2,303,000
$1,259,100
Expansion
Reserve
$ 2,422,400
414,000
850,000
$1,986,400
Total
$4,798,500
1,600,000
3,153,000
$3,245,500
2006-07 planned expenditures from the reserves include: $1,335,000 for bus
replacements, $750,000 for the Carr’s Hill Precinct Parking, $203,000 for storm water
management, $100,000 for the South Lawn Parking, $100,000 for parking lot repairs, and
$665,000 for facility maintenance, equipment and vehicle replacement, 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
services. Revenues are increasing by 5.3 percent to $13.9 million in 2006-07. Service rates and
the number of people served will remain relatively unchanged for 2006-07. Operating
expenditures are expected to increase by 4.7 percent to $11.9 million.
As shown on the schedule on the following page, Voice Communications plans to
transfer $2.0 million to its reserve in 2006-07. With $1.6 million in planned expenditures, Voice
Communications will have a remaining $9.98 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.
24
VOICE COMMUNICATIONS
RESERVE
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Expansion
Reserve
$9,544,400
2,012,600
1,580,000
$9,977,000
2006-07 planned expenditures from the reserve include: $700,000 for Dorm Network,
$200,000 for Residence hall Wireless Networking, $130,000 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 9.8 percent to $8.1 million in 2006-07, which
is primarily related to the approved student fee increase. Student Health operating expenditures
are increasing by 9.8 percent to $7.9 million, related to higher operating costs, including
compensation, medical and pharmacy supplies, utilities and service providers.
As shown below, Student Health will transfer $116,500 to its R&R reserve.
STUDENT HEALTH RESERVE
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$751,800
116,500
100,000
$768,300
With $100,000 in planned expenditures, Student Health will have a remaining $768,300
reserve, primarily earmarked for future facility needs and major equipment replacement. 200607 planned expenditures from the reserves include major equipment purchases, facility roof
repairs, carpet replacement and minor renovations.
Intramural/Recreation Sports
Intramural/recreation sports revenues will increase to $5.8 million in 2006-07. Revenues
are increasing by 6.6 percent, primarily related to fee increases. Expenditures are increasing 12
percent to $3.3 million as a result of higher operating costs, including compensation and
operations and maintenance cost increases due to volatility in utility prices.
As shown on the following page, Intramurals expects to transfer $2.6 million to its
reserves in 2006-07. With $3.3 million in planned expenditures, Intramurals will have a
remaining $2.9 million reserve, primarily earmarked for future expenditures related to
renovations to the Slaughter Recreation Center, field development and maintenance and
continued debt service.
25
INTRAMURAL RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$2,913,100
928,900
1,337,000
$2,505,000
Expansion
Reserve
$ 756,100
1,638,600
1,994,400
$400,300
Total
$3,669,200
2,567,500
3,331,400
$2,905,300
2006-07 planned expenditures from the reserves include: $1.6 million for debt service
and $1.58 million for renovations to the North Grounds Recreation Center and $190,000 for
equipment and field improvements.
Printing and Copying
Printing and Copying (P&C) revenues are increasing by 9.1 percent to $5.7 million in
2006-07. P&C anticipates higher sales volume with the introduction of digital printing, new
intelligent inserting capabilities, continued production of a major Education School program, and
coordination with Medical Records and the Hospital Forms Compliance Committee to satisfy
web-based and on-demand forms needs. P&C operating expenditures are increasing by 10.5
percent to $5.2 million, related to higher operating costs, including compensation and supplies
needed to support the higher sales volume.
As shown on the schedule below, P&C will transfer $503,500 to its R&R reserve. With
$616,300 in planned reserve expenditures, P&C will have a remaining $3.4 million reserve
balance, primarily earmarked for future investment in new printing and copying technology and
replacement of production equipment.
P&C RESERVE
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$3,485,000
503,500
616,300
$3,372,200
2006-07 planned expenditures from the reserves are primarily for equipment and system
purchases.
Newcomb Hall
Newcomb Hall and University Programming Council revenues are increasing 5.2 percent
to $4.7 million in 2006-07, due to a slight increase in the approved student fee. Newcomb
operating expenditures are projected to increase 6.3 percent to $3.4 million.
As shown on the schedule below, Newcomb will transfer $1.4 million to its reserves in
26
2006-07. With $1.7 million in planned expenditures, Newcomb will have a remaining $2.2
million reserve, primarily earmarked for future planning of a new student center.
NEWCOMB HALL RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$1,363,900
157,500
780,000
$741,400
Expansion
Reserve
$ 1,082,700
1,294,300
951,000
$1,426,000
Total
$2,446,600
1,451,800
1,731,000
$2,167,400
2006-07 planned expenditures include $851,000 related to the Newcomb Expansion debt,
$750,000 reserved for Newcomb Hall Roof replacement and other miscellaneous facility repairs.
Dining
Under the dining services contract with ARAMARK Corporation, net revenues received
by the University in 2006-07 are expected to total $4.1 million, an increase of 9.7 percent. Of
this amount, $3.9 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.
Operating expenditures are expected to total $442,000 in 2006-07.
In addition to planned debt service of $1.2 million, the below schedule illustrates
Dining’s plan to transfer $2.3 million to its reserves in 2006-07. With $1.3 million in planned
expenditures, Dining will have a remaining $7.47 million reserve, primarily earmarked for a
South Lawn Dining Facility, a Residential Dining Facility, and other future facility maintenance
needs.
DINING RESERVES
Projected Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
Ren. & Repair
Reserve
$4,367,800
1,363,000
1,279,000
$4,451,800
Expansion
Reserve
$ 2,117,000
905,500
-0$3,022,500
Total
$6,484,800
2,268,500
1,279,000
$7,474,300
2006-07 planned expenditures of $1.3 million from the reserves are earmarked for facility
repairs and improvements.
Other
This category includes the John Paul Jones Arena operations, leased facilities (NRAO
and Judge Advocate General’s School), Mail Services, University Press, SCPS’s Satellite
Uplink, the Child Development Center, Business Operations, and Cavalier Advantage. There are
increases of $410,000 million in revenues in other auxiliary units, with $141,000 million in
decreasing expenditures. Transfers of $927,500 will be made to the various reserves as shown
on the schedule below. With planned expenditures of $755,600, the 2007 reserve balances are
projected to total $3.9 million.
27
OTHER RESERVES
Beginning Balance, 7/1/06
Plus: Transfers from Operating
Less: Planned Expenditures
Projected Balance, 6/30/07
JAG
R&R
$2,934,900
465,100
233,600
$3,166,400
SCPS
R&R
$162,600
152,700
150,000
$165,300
Other
R&R
Total
$642,600 $3,740,100
309,700
927,500
372,000
755,600
$580,300 $3,912,000
2006-07 planned expenditures from the reserves include: $233,600 for the Judge
Advocate General’s School, $150,000 for SCPS’s Satellite Uplink, and $372,000 for other needs
in Mail Services, the Child Development Center, Business Operations and Cavalier Advantage.
STAFFING
The Academic Division projects a very slight decrease of 38 FTE positions to 8,098 in
2006-07. This decrease is driven by the projected decline in grants, contracts, and F&A
recoveries. Positions funded from private resources are expected to increase by 4.4 percent over
the 2005-06 revised budget to 999 FTEs. The 2006-07 budget reflects a net increase of 15 FTE
positions in auxiliary enterprises over the 2005-06 revised budget. Of the 8,098 positions
budgeted for 2006-07, 2,560 positions are involved directly in the primary programs of
instruction, departmental research, and public service.
2005-06 Revised
2006-07
Change
% Change
State
4,469.5
4,504.9
35.4
0.8%
Grants and
Contracts
1,907.6
1,777.4
(130.2)
(6.8%)
Private
Resources
957.1
998.9
41.8
4.4%
Auxiliaries
802.4
817.2
14.8
1.8%
Total
8,136.6
8,098.4
(38.3)
(0.5%)
28
THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE
2005-2006 BUDGET SUMMARY
The 2006-07 operating budget for the University of Virginia’s College at Wise (Wise) is
projected to total $30.4 million, an increase of $3.2 million or 11.7 percent compared to the
2005-06 revised budget. The Advisory Board of Wise reviewed and approved this budget on
March 24, 2006.
UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE
OPERATING FINANCIAL PLAN (dollars in thousands)
2006-07
Proposed
Budget
2005-06
Projected
Results
Change
$15,014
$12,490
$2,524
20.2%
$12,164
298
5,753
(300)
1,723
877
396
196
6,450
30,407
300
5,201
(275)
1,645
832
426
187
6,424
27,230
(2)
552
(25)
78
45
(30)
9
26
3,177
(0.7%)
10.6%
9.1%
4.7%
5.4%
(7.0%)
4.8%
0.4%
11.7%
298
5,205
(275)
1,583
650
457
160
6,312
26,554
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
9,610
1,627
3,725
1,741
3,096
1,845
2,313
6,450
30,407
7,340
1,501
3,581
1,699
2,723
1,817
2,145
6,424
27,230
2,270
126
144
42
373
28
168
26
3,177
30.9%
8.4%
4.0%
2.4%
13.7%
1.5%
7.8%
0.4%
11.7%
7,246
1,508
3,444
1,683
2,639
1,775
1,947
6,312
26,554
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%
2005-06
Approved
Budget
$
-
STRATEGIC CONSIDERATIONS FOR WISE, WHEN DEVELOPING THE BUDGET
The Six Year Plan prepared by Wise and submitted to SCHEV in October 2005 provided
the foundation for the 2006-07 budget. The first priority of the Six Year Plan was the
solidification of areas of the College which have been historically under funded. It is critical that
under-resourced areas must be brought up in order for the College to continue its move forward.
These include critical faculty and staff positions, as well as operating funds in areas such as
facilities maintenance and utilities.
29
After solidifying the base funding, the focus of the Six Year Plan is on two fundamental
areas: student success and regional involvement. Student success focuses on providing access to
the campus, including classes, financial aid, the residential environment and campus life.
Regional involvement is centered on programs which needed to aid in the development of
southwest Virginia, including software engineering, nursing and K-12 education.
FUNDING SOURCES OF THE EDUCATIONAL AND GENERAL PROGRAMS
State General Fund Appropriation
The general fund revenue appropriation for 2006-07 is projected to total $15.3 million, an
increase of $2.5 million or 19.7 percent over the revised 2005-06 budget. In the absence of an
approved Appropriations Act, this budget is based upon the Governor’s recommended increases
in base operating support and financial aid.
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 $8.6 million for 2006-07.
Tuition and Fees
In 2006-07, net revenue from tuition and fees is projected to total $5.5 million compared
to $4.9 million generated in 2005-06. 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 9 percent in 2006-07. The technology fee will increase from $57 to $60.
Revenue projections for tuition and fees are based upon previous enrollment and future
enrollment growth. Actual FTE enrollment for the fall 2005 semester totaled 1,570. It is
anticipated that the FTE enrollment for fall 2006 will total 1,723, an increase of 8.9 percent.
Wise will continue to offer reduced tuition for students from Kentucky and Tennessee.
Grants, Contracts and Facilities & Administrative (F&A) Recoveries
Sponsored research direct costs and indirect cost recoveries are expected to increase by
4.7 percent in 2006-07. F&A recoveries amount to $90,000 of the total.
Endowment Income and Gifts
For 2006-07, endowment distributions projected for educational and general programs
and student financial aid total $877,000, an increase of $45,000 or 5.4 percent from 2005-06.
Expenditures from private gifts for educational and general programs and student financial aid
are projected to total $396,000 in 2006-07, a 7.0 percent decrease from 2005-06. Private support
for athletics, $255,000 in 2006-07, is included with athletics revenues.
30
Other Sources of Funds
Revenue from local sales and services and local other activities is expected to increase by
4.8 percent to $196,000 in 2006-07.
OPERATING BUDGET BY ACTIVITY
Direct Instruction
This program includes teaching faculty, support staff, instructional equipment and
operating costs associated directly with instruction. Operating costs associated directly with
instruction are projected to total $9.6 million in 2006-07, an increase of $2.3 million or 30.9
percent as compared to the revised 2005-06 budget. Wise has received approval from The State
Council of Higher Education for Virginia to begin the first undergraduate software engineering
degree program in Virginia. The anticipated cost of this program is $800,000 and budgeted
funds are currently being held in reserve. Additional support personnel, anticipated salary
increases and general operating costs totaling $1.3 million is also being held in budget reserve
pending final budget decisions based upon the 2006 General Assembly outcome. The remaining
$100,000 has been allocated for general operating costs within the activity.
Research and Public Service
This category includes research and public service funded from the state and a federal
grant. The Southwest Virginia Public Education Consortium will continue to receive general
fund appropriation in the amount of $297,750 in 2006-07, a decrease of $1,945 or 1 percent as
compared to the revised 2005-06 allotment. The Consortium was allotted the June 30, 2005
available cash balance in 2005-06. Of the $297,750 amount, $97,750 will be allocated to the
William King Regional Arts Center, a non-state agency located in Abingdon, Virginia. The
Consortium serves as the “flow through” agent for this funding. Additionally in 2005-06,
$60,000 was allocated to the educational and general budget. This allocation is made at the
discretion of the Consortium board.
Wise will continue to provide funding to the Pro-Art Association of Wise County and the
City of Norton in the amount of $23,000 in 2006-07, an increase of $8,000 or 34 percent over
2005-06.
Supplemental support for WISE-FM Public Radio, which airs via WVTF-FM, will
remain at $500.
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. An increase in support personnel and
basic operating costs for the academic support program will total $144,000 in 2006-07, an
increase of 4 percent as compared to 2005-06.
Student Services
31
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. The student
services budget will increase by $42,000 or 2.4 percent in 2006-07 as compared to the revised
2005-06 budget.
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 for general administrative programs will be $373,000 in 2006-07, an increase
of 13.7 percent as compared to 2005-06. The increase is primarily related to the recovery of
general and administrative costs ($225,000) from auxiliaries moving from general administration
to operation and maintenance of plant.
Operation and Maintenance of Plant
Maintenance, housekeeping operations, utilities expenditures, facilities management and
landscaping make up this program. The 2006-07 budget will increase by $28,000 or 1.5 percent
as compared to the revised 2005-06 operating budget. Actual expenditures have increased by
$253,000, but are offset by the recovery of general and administrative costs ($225,000) from
auxiliaries which has moved from the general administration category.
STUDENT FINANCIAL AID
Student financial aid, funded from a mix of general fund appropriations, private funds
and grants, will increase by 7.8 percent in 2006-07 as compared to 2005-06.
AUXILIARY ENTERPRISES
Student housing operations, bookstore, cafeteria operations, parking and transportation,
student health services, athletics and the student union make up the auxiliary enterprise activity
at Wise. Auxiliary enterprises are self-supporting, funded solely by revenue collected for
services provided to students, faculty, staff, and the general public. The auxiliary enterprise
budget for 2006-07 will total $6.4 million or 0.4 percent more than 2005-06.
Student Fees
The student services fee provides operating revenue for the majority of Wise’s student
life functions. Activities receiving revenue from student fees include the student government
association, student publications, intramural and outdoor recreation activities, student health
services, and debt services for Cantrell Hall, the Slemp Student Center, athletics and student life
positions. Full-time student auxiliary fees will total $2,380 per academic year, an increase of
$340 or 14 percent over 2005-06. $235 of this increase will provide funding for the first
installment of the new Dining Hall, part of the Wise Restructuring Plan, approved by the Board
32
of Visitors. The remaining $105 will continue to support personnel and basic operating costs of
the student activities program.
Student Housing
The current occupancy level for the residence halls is 97 percent. With the completion of
Culbertson Hall, the 2006-07 occupancy level is projected to exceed 100 percent. Housing rates
will increase by 6.5 percent in 2006-07.
Parking & Transportation
The 2006-07 projected budget for parking and transportation will total $100,215, an
increase of 3 percent as compared to the 2005-06 revised budget.
Cafeteria
The 2006-07 cafeteria budget will increase related to student meal plan rates increases of
4.8 percent for the 2006-07 year. Students residing in campus residence halls are required to
purchase a meal plan.
Bookstore
The 2006-07 operating budget for the bookstore is projected to total $894,722, an
increase of $2,305 over 2005-06.
Athletics
The projected 2006-07 budget for athletic programs will total $987,391, an increase of 11
percent over 2005-06.
STAFFING
Although $1.8 million has been recommended in the Governor’s budget for an increase in
personnel due to continued enrollment growth, no additional positions have been included. A
request for additional FTE appropriation will be made once the final budget bill is approved in
the 2006 General Assembly session. Full-time equivalent positions for 2006-07 have been
allocated as follows:
Educational and General
Auxiliary Enterprises
Sponsored Programs
Total
219
33
12
264
33
34
UNIVERSITY OF VIRGINIA MEDICAL CENTER
2006-2007 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 2006-07, 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. The
capital budget for IHIMS is $12.7 million in 2006-07.
Previous increases in capital investment for the hospital expansion and all other capital
activity will result in additional depreciation expense of $5.1 million for 2006-07. The budget
maintains operating room capacity at 23 rooms, which may grow to 26 rooms by the end of
2006-07. The Medical Center’s 2006-07 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 2006-07, discharges are budgeted at the same level as originally budgeted for 200506, but are projected to grow from the 2005-06 projected levels. In 2006-07 the growth
budgeted will result form increased operating room capacity and additional bed capacity.
Outpatient service demand is expected to grow by 3.0 percent from fiscal year 2005-06 projected
levels.
35
The following table includes historical and projected patient volumes:
Discharges
Adjusted Discharges
Average length of stay
Patient days
Clinic & ER visits
Budgeted
2006-07
30,405
52,122
5.8
176,349
678,673
Forecasted
2005-06
29,288
49,856
5.8
169,894
658,906
Budgeted
2005-06
30,405
52,694
5.6
171,147
654,359
Actual
2004-05
29,076
47,972
5.8
166,904
654,742
Revenues
Revenues from operations are projected to increase 7.4 percent or $62.6 million to $909.6
million in 2006-07. The Medical Center’s 2006-07 budgeted payer mix remains consistent with
that of 2005-06. 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 may also result from the impact of the
new operating rooms, added beds, and emerging new diagnostic and testing procedures.
Rate Changes
The Medical Center proposes rate increases of 8.0 percent to 9.9 percent, which is
commensurate with rate increases we believe will be implemented generally in the hospital
industry.
Expenses
Expenses from operations are projected to increase 7.4 percent or $59.6 million to $866.0
million in 2006-07. Expenses per adjusted discharge increase 2.7 percent from the forecasted
amount of $8,887 to $9,129. 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 Data Base.
Staffing
The Medical Center’s 2006-07 budget includes 6,092 FTEs, an increase of 63 FTEs from
staffing at the 2005-06 projections of 6,029 FTEs and 140 FTEs greater than in 2004-05. On an
all payer Case Mix Index weighted adjusted discharge basis, FTEs will drop from 24.25 in 200506 to 23.44 in 2006-07 reflecting fewer FTEs required to treat volume growth.
OPERATING PLAN
The operating plan is presented on page 37 and includes actual results from 2004-05, the
original 2005-06 budget, the 2005-06 projection, and the 2006-07 budget. The Medical Center’s
2006-07 fiscal plan projects an operating margin of $43.6 million or 4.8 percent. With nonoperating activities contributing $16.8 million, net income is budgeted at $60.4 million. In
comparison, it is projected that the 2005-06 operating margin will be $40.6 million or 4.8
percent. Non-operating activities in 2005-06 are expected to contribute $24.7 million, for an
expected net income of $65.3 million.
36
UNIVERSITY OF VIRGINIA MEDICAL CENTER
OPERATING FINANCIAL PLAN
(dollars in thousands)
2006-07
Proposed
Budget
Operating Revenues
Total Gross Charges
2005-06
Projected
Results
2005-06
Approved
Budget
2004-05
Actual
Results
$1,833,410
$1,668,005
$1,600,268
$1,431,327
Less Deductions:
Indigent Care Deduction
Contractual Deduction
Total Deductions
104,614
837,811
942,425
96,078
745,308
841,386
97,751
668,675
766,426
80,155
570,975
651,130
Net Patient Revenue
890,985
826,619
833,842
780,197
18,630
20,385
19,342
19,399
Total Operating Revenues
909,615
847,004
853,184
799,596
Operating Expenses
Compensation and Benefits
Supplies, Utilities, and Other
Depreciation and Amortization
Interest Expense
Bad Debt
401,068
368,844
50,740
6,677
38,659
378,223
344,390
45,641
4,736
33,388
374,299
348,205
51,218
6,729
32,157
354,510
328,230
42,008
4,816
27,389
Total Operating Expenses
865,988
806,378
812,608
756,953
Operating Income
Operating Income Percent
43,627
4.8%
40,626
4.8%
40,576
4.8%
42,643
5.3%
Non-operating Revenues (Expenses)
Investment Income
Net Gain from Affiliates
Net Gain (Loss) on Fixed Assets
Other
Net Non-operating Revenues
18,776
766
(800)
(1,940)
16,802
25,764
1,174
(381)
(1,864)
24,693
18,661
1,271
(174)
(1,806)
17,952
24,714
2,446
(185)
(6,141)
20,834
60,429
65,319
58,528
63,477
50,740
45,642
51,218
42,008
Cash Available for Capital and Other
Transfer to Capital Requirements
111,169
73,766
110,961
50,400
109,746
65,300
105,485
49,900
Remaining Addition to Cash and
Reserves
$37,403
$60,561
$44,446
$55,585
Miscellaneous Revenue
Net Income
Add back Non-cash Expenditures:
Depreciation and Amortization
37
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.
•
Increasing surgical case volume as accommodated by the operating rooms opened in
November 2005.
•
Medical supply and drug cost management.
•
Expansion of bed capacity.
•
Contract discussions with Anthem.
The major risk factors that impact the ability to accomplish the fiscal plan include:
•
A nationwide shortage in healthcare workers that could negatively impact our ability
to staff for expanded capacity, especially considering that our biggest need is for
operating room personnel, who are among the more difficult to recruit.
•
Maintaining an adequate number of physicians in specialty areas experiencing a
national shortage such as Radiology, Anesthesia, and Hematology/Oncology.
•
Centers for Medicare & Medicaid Services and other regulatory reimbursement
changes.
•
Advances in medical technology that could impact expenses and/or revenues very
quickly.
•
Inflation in the cost of medical devices and pharmaceuticals in excess of 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 reserves and interest income. The Medical Center faces many challenges
regarding capital funding as continued pressures on the operating margin affect cash flow, while
38
demand for capital increases significantly as the result of space requirements, technological
advances and aging of existing equipment. Subject to funds availability, the Medical Center
management recommends $73.8 million, which includes $12.1 million for contingencies, be
authorized for capital requirements.
39
40
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2006-07 Financial Plan
State General Fund Appropriations for Educational and General (E&G)
Base Appropriations
Less: Transfer to capital projects
Less: Transfer to maintenance reserve
Less: Transfer to student financial aid
Reappropriation of 2004-05 balances
State adjustments during year
Actions pending General Assembly approval of 2006-08 Budget
Total State General Fund Appropriations for E&G
Special State Appropriations for E&G
Eminent Scholars matching funds
Fishery Resource Grants, including reappropriation of 2004-05 balances
Commonwealth Tech Research Fund, reappropriation of 2004-05 balances
VIVA library materials
Total Special State Appropriations for E&G
$
2005-06 Projection
193,482,232 $
(45,355,000)
(7,450,000)
(7,107,218)
7,815,771
141,385,785
166,785,132
(24,900,000)
(4,900,000)
(6,792,952)
222,149
(80,126)
130,334,203
2005-06 Approved
Budget
(old format)
$
130,214,366
(2,004,625)
1,780,545
129,990,286
2,933,590
210,000
3,143,590
2,933,590
212,785
472,081
60,197
3,678,653
2,933,590
210,000
3,143,590
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
6,670,332
128,759,404
8,837,868
8,216,009
28,683,630
4,721,703
17,153,154
3,265,709
6,400,000
356,000
213,063,809
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
306,300
195,843,844
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
Less: Transfer to undergrad University Grants
Less: Transfer to graduate adjustment
Less: Transfer to GTA/GAA remission
Less: Transfer to GTA/GAA healthcare
Less: Transfer to graduate University Grants
Subtotal tuition transferred to financial aid
Percentage of tuition to financial aid
(11,912,279)
(6,243,995)
(6,669,812)
(1,980,397)
(4,053,638)
(30,860,121)
14.5%
(11,978,593)
(6,763,181)
(6,129,506)
(1,532,925)
(4,092,113)
(30,496,318)
15.6%
(11,912,279)
(6,763,180)
(6,206,993)
(1,520,169)
(4,073,638)
(30,476,259)
15.6%
182,203,688
165,347,526
165,228,985
35,779,923
23,743,669
5,358,310
1,330,000
66,211,902
33,123,771
20,990,850
4,856,784
1,290,000
763,677
61,025,082
33,123,771
20,990,850
5,073,180
1,290,000
763,677
61,241,478
(6,012,000)
9.1%
(6,617,729)
10.8%
(5,509,269)
9.0%
60,199,902
54,407,353
55,732,209
Net traditional degree program tuition
Self-supporting degree program tuition
Law JD, graduate, and appellate judges' programs
Darden MBA, executive 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
Less: Transfer to University Grants
Percentage of tuition to financial aid
Net self-supporting degree program tuition
41
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2006-07 Financial Plan
Other tuition and fees
SCPS non-degree tuition and fees
McIntire executive and E&Y fees
Darden executive MBA fees
Mandatory E&G fees
Application fees
Other program fees
Less: Transfers to capital reserves
Total other tuition and fees
Total Tuition and Program Fees
Fines, rents, sales and services
Plus: Transfer from Facilities and Administrative (F&A) Cost Recoveries
Less: Transfer to Student Financial Aid
Federal financial aid reimbursement
Total State Nongeneral Funds for E&G
10,207,770
1,338,148
497,391
3,966,650
2,378,900
1,526,314
(1,184,600)
18,730,573
261,134,163
4,846,515
16,600,000
(467,603)
585,000
2005-06 Projection
9,272,972
1,280,359
3,213,850
2,323,200
1,512,768
(546,100)
17,057,049
236,811,928
4,563,508
16,600,000
(736,075)
585,000
2005-06 Approved
Budget
(old format)
9,178,972
1,408,793
3,213,850
2,323,200
1,512,768
17,637,583
238,598,777
4,209,799
16,600,000
(739,114)
585,000
282,698,075
257,824,361
259,254,462
Total State Funds for E&G
427,227,450
391,837,217
392,388,338
Grants, Contracts and F&A Cost Recoveries for operations
Grants and Contracts
Less: Transfers to student financial aid
Net grants and contracts for operations
221,500,000
(16,215,788)
205,284,212
225,200,000
(16,193,435)
209,006,565
237,720,154
(18,672,379)
219,047,775
65,500,000
(16,600,000)
(2,414,997)
(11,300,000)
35,185,003
66,600,000
(16,600,000)
(1,765,933)
(11,600,000)
36,634,067
62,100,000
(16,600,000)
(2,000,000)
43,500,000
240,469,215
245,640,632
262,547,775
1,277,220
1,324,797
1,330,889
87,100,000
(20,563,092)
(213,000)
66,323,908
85,600,000
(19,179,520)
(346,000)
66,074,480
66,684,000
(17,979,749)
48,704,251
233,800,000
64,300,000
(150,100,000)
(7,600,000)
(15,100,000)
(12,200,000)
(18,445,299)
(3,740,354)
90,914,347
214,000,000
60,700,000
(137,200,000)
(7,000,000)
(13,800,000)
(11,200,000)
(17,277,355)
(2,067,405)
86,155,240
67,932,000
(17,006,247)
(2,384,405)
48,541,348
23,688,412
25,031,041
26,162,186
182,203,887
178,585,558
124,738,674
849,900,552
816,063,407
779,674,787
F&A Cost Recoveries
Less: Transfer to educational and general
Less: Transfers to student financial aid
Less: Transfers to capital reserves
Net F&A Cost Recoveries for operations
Total Grants, Contracts and Indirect Cost Recoveries for operations
University Funds for E&G
Student activity fees
Endowment distribution
Less: Transfers to student financial aid
Less: Transfers to auxiliary operations
Net endowment distribution for operations
Gifts
Plus: Transfers from affiliated foundations
Less: Gifts made directly to affiliated foundations
Less: Gifts-in-kind
Less: Transfers to endowments
Less: Transfers to capital projects
Less: Transfers to student financial aid
Less: Transfers to auxiliary operations
Net gifts available for operations
Sales, services, investment and other income
Total University Funds for E&G
Total Funds Available for E&G
42
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Available Fund Sources
2006-07 Financial Plan
Funds Available for Student Financial Assistance
General fund appropriations, including reappropriation of 2004-05 balances
Tuition and other nongeneral funds
Grants, contracts and indirect cost recoveries
Endowment distributions
Private gifts
Investment and other income
2005-06 Projection
2005-06 Approved
Budget
(old format)
7,107,218
37,339,724
18,630,785
20,563,092
18,445,299
3,814,011
6,792,952
37,850,122
17,959,368
19,179,520
17,277,355
2,224,350
6,424,984
36,724,642
20,672,379
17,979,749
17,006,247
2,210,921
105,900,129
101,283,667
101,018,922
3,469,000
9,050,000
13,864,308
9,421,868
3,953,354
1,021,250
40,779,780
1,984,566
9,179,000
11,816,750
8,704,000
2,413,405
2,339,873
36,437,594
1,910,000
9,179,000
11,816,750
8,704,000
2,384,405
974,500
34,968,655
University bookstores
35,955,200
35,611,251
34,183,051
Housing
Student housing rents
Conference services
Faculty and staff housing
Subtotal
27,938,308
2,970,000
672,000
31,580,308
25,512,000
2,870,000
650,000
29,032,000
25,512,000
2,870,000
650,000
29,032,000
Parking and transporation
Student fees
Parking fees, bus passes, charter fees and other
Subtotal
2,786,000
12,334,000
15,120,000
2,554,000
11,653,000
14,207,000
2,554,000
11,445,000
13,999,000
Voice communications
Student health
Intramural/recreation sports
Printing services
Newcomb Hall and University Programming Council
Dining
Leased facilities
Mail services
University Press
Other
13,928,000
8,125,411
5,772,350
5,691,000
4,722,262
4,117,700
4,024,888
2,055,500
2,021,937
1,107,497
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
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
175,001,833
(32,716,386)
142,285,447
163,585,908
(30,210,864)
133,375,044
160,480,769
Total Funds Available for Student Financial Assistance
Revenues from Auxiliary Enterprises
Athletics
TV, radio, licensing and sponsorship
Conference revenue
Gate receipts
Student fees
Private gifts and endowment distributions
Other
Subtotal
Subtotal revenues from auxiliary enterprises
Less: Transfers to reserves for renewal, replacement, and debt service
Total revenues from auxiliary enterprises for operations
Total Funds Available for the Academic Division
$
1,098,086,128
$
1,050,722,118
160,480,769
$
1,041,174,478
43
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Projected Use of Funds
2005-06 Approved
Budget
(old format)
2006-07 Proposed
Budget
2005-06 Projected
Results
$
224,766,580
7,182,129
3,505,039
76,195,711
19,206,545
37,398,926
58,972,520
$
197,964,529
8,292,926
3,679,748
75,691,448
18,491,932
39,872,063
47,844,571
$
206,454,736
6,514,513
3,141,825
68,785,052
17,811,642
39,852,215
49,828,355
$
427,227,450
$
391,837,217
$
392,388,338
$
1,880,992
213,832,160
8,540,127
10,810,887
241,106
3,208,872
1,955,071
$
2,224,753
218,426,858
8,382,978
11,196,091
247,690
3,170,481
1,991,781
$
4,258,148
226,687,580
9,581,828
15,498,901
243,640
4,676,808
1,600,870
Total Grants, Contracts and Indirect Cost Recoveries for E&G Programs $
240,469,215
$
245,640,632
$
262,547,775
$
49,631,919
25,663,754
12,688,588
30,882,296
4,193,740
29,095,639
2,727,271
$
44,355,584
24,305,314
11,854,693
22,489,178
3,688,452
28,575,379
2,847,335
$
38,969,010
24,134,179
13,372,049
19,103,587
3,769,347
22,688,566
2,701,936
$
154,883,207
$
138,115,935
$
124,738,674
$
822,579,872
$
775,593,784
$
779,674,787
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
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
45
University of Virginia - Academic Division
Supplemental Budget Information
Detail of Projected Use of Funds
2005-06 Approved
Budget
(old format)
2006-07 Proposed
Budget
2005-06 Projected
Results
$
44,446,942
18,630,785
42,822,402
$
44,643,074
17,959,368
38,681,225
$
43,149,626
20,672,379
37,196,917
$
105,900,129
$
101,283,667
$
101,018,922
$
36,949,037
34,285,750
18,549,000
11,239,000
11,915,415
7,877,550
3,317,847
5,231,900
3,358,209
441,900
2,670,568
2,036,000
2,392,685
1,162,076
$
33,359,382
33,825,951
17,452,100
9,705,000
11,375,388
7,172,083
2,962,181
4,733,900
3,159,774
432,900
2,618,295
1,948,900
2,359,721
1,463,241
$
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
Total for Auxiliary Enterprises
$
141,426,937
$
132,568,816
$
160,078,195
Total Operating Budget - Academic Division
$
1,069,906,938
$
1,009,446,267
$
1,040,771,904
Student Financial Assistance
108 State scholarships and fellowships
108 Grant-related scholarships and fellowships
108 Private scholarship and fellowships
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
46
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.
47
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.
48
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.
49
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.
50
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.
51
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.
52
University of Virginia - Medical Center
Supplemental Budget Information
Selected Performance Measurements
2006-07
Budget
All Payer Case Mix Index (CMI)
1.8
Average Length of Stay, CMI Adjusted
3.2
Gross Revenue per CMI Weighted Adjusted Discharge $
19,327
Net Revenue per CMI Weighted Adjusted Discharge
$
9,589
FTE per CMI Weighted Adjusted Discharge
23.40
Labor Expense per CMI Weighted Adjusted Discharge $
4,228
Supply Expense per CMI Weighted Adjusted Discharge $
2,046
Total Expense per CMI Weighted Adjusted Discharge $
9,129
Operating Margin
4.8%
50th
Percentile
Peer Median
1.7
3.6
$
18,315
$
9,276
27.75
$
4,550
$
1,979
$
9,544
3.9%
53
APPROVAL OF THE 2006-2007 OPERATING BUDGET FOR THE ACADEMIC
DIVISION
RESOLVED that the 2006-2007 Operating Budget for the Academic Division is
approved, as recommended by the President and the Chief Financial Officer.
APPROVAL OF THE 2006-2007 OPERATING BUDGET FOR THE UNIVERSITY OF
VIRGINIA'S COLLEGE AT WISE
RESOLVED that the 2006-2007 Operating Budget for the College at Wise is approved,
as recommended by the President and the Chief Financial Officer.
APPROVAL OF THE 2006-2007 OPERATING BUDGET FOR THE UNIVERSITY OF
VIRGINIA MEDICAL CENTER
RESOLVED that the 2006-2007 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.
55
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
General Institutional….… ............................................................. ……………………………………...A-44
Department of Space and Real Estate Management…………………………………………………… A-45
State Governmental Relations ….………………………………………………………………………..A-46
Procurement Services ….………………………………………………………………………………...A-47
Facilities Management …………………………………………………………………………………..A-48
Units Reporting to the Vice President for Finance
Office of the Vice President for Finance ………………………………………………………………..A-49
Comptroller ……………………………………………………………………………………………...A-50
Business Operations ….………………………………………………………………………………….A-51
Human Resources ….…………………………………………………………………………………….A-52
Sponsored Programs …………………………………………………………………………………….A-53
Risk Management ….…………………………………………………………………………………….A-54
Integrated System Deployment and Support ….…………………………………………………………A-55
Units Reporting to the Director of Athletic Programs
Athletics …………………………………………………………………………………………………A-56
Intramurals and Recreational Sports…………………………………………………………………….A-57
Units Reporting to the Vice President for Student Affairs
Office of the Vice President for Student Affairs ….……………………………………………………..A-58
Office of African American Affairs ….………………………………………………………………….A-59
Office of the Dean of Students ….……………………………………………………………………….A-60
Residence Life………………………………………………………………………………………… A-61
Student Health ….………………………………………………………………………………………..A-62
University Career Services ….…………………………………………………………………………...A-63
WTJU ……………………………………………………………………………………………………A-64
Units Reporting to the Vice President and Chief Information Officer
ITC Budget & Administration ........……………………………………………………………………..A-65
ITC Communications & Systems ….…………………………………………………………………….A-66
ITC Computing Support Services ….……………………………………………………………………A-67