Board of Visitors Retreat - University of Virginia · Data Science Open Grounds at Emmet-Ivy...

Board of Visitors Retreat

Strategic Plan Financial Overview

August 3, 2019

Financial Framework -- Agenda

Financing Our Strategic Priorities

Starting Point -- Position of Strength

Ten Key Initiatives (of which many goals underneath)

Next Steps

2

Financing Our Strategic Priorities

Strengthen our FoundationCultivate the Most Vibrant

Community in Higher Education

Enable Discoveries that Enrich and Improve Lives

Make UVA Synonymous with Service

A Great & Good University

SuccessUVA

Citizen Leaders for

the 21st

Century

Third-Century Faculty

Initiative

Pathways to Research Preeminence

Cultivating Staff Success

Good Neighbor Program

Broadening our Horizons

School of Data Science

Open Grounds at Emmet-Ivy

Bachelor’s Completion &

Certificate Programs3

Net Assets: $8.6 billion

UVA’s Financial FrameworkFinancial Strength as of June 30, 2018

4Diverse Revenue Base Strong Philanthropic Tradition

UVA’s Financial Framework: Current State FY2020Academic Division Revenues, $1.9B Academic Division Expenses, $1.9B

Operating & Capital Reserves

CapitalInfrastructure

Strategic Initiatives

Endowment & Annual Giving$381M, 20%2-3% growth

Auxiliaries & Other

$317M, 12%2-3% growth

Tuition & Fees

$623M, 33% 2-3% growth

Research$425M, 22%3-5% growth

State Support $167M, 9%8% growthSIF Return

$70M, 4%2-3% growth

Student, Admin, Facilities $234M, 12%2-3% growth

Auxiliaries & Debt Service$265M, 14%Instruction, Research, &

Academic$1,265M, 66%

3% growth

Student Financial Aid $145M, 8%3% growth

5

Operating Expenses, $1.76B Net Resources Directed To: Capital, Strategic, SOM & ReservesPatient Revenues, $1.70B

Net Resources Directed Toward

Medical Center

UVA’s Financial Framework: Opportunities

New Resources Directed Toward

Organizational Excellence

Savings

Strategic InitiativesMinimize Deferred

Maintenance Enterprise Risk

6

Revenue Opportunities

Capital Campaign & Investment

Return

Public-Private Partnerships &

Asset Utilization

Strategic Investment

Fund

Leverage External Research

Investments

Commonwealth and Tuition

Leverage Debt Capacity

Core Growth, Consolidation, Reallocation

P3

Financing Our Strategic Priorities

Strengthen our FoundationCultivate the Most Vibrant

Community in Higher Education

Enable Discoveries that Enrich and Improve Lives

Make UVA Synonymous with Service

A Great & Good University

SuccessUVA

Citizen Leaders for

the 21st

Century

Third-Century Faculty

Initiative

Pathways to Research Preeminence

Cultivating Staff Success

Good Neighbor Program

Broadening our Horizons

School of Data Science

Open Grounds at Emmet-Ivy

Bachelor’s Completion &

Certificate Programs7

Open Grounds at Emmet-Ivy

8

Hotel & Conference Center

• Project cost: $105M (pending)• Estimated annual cost: $TBD(debt service, O&M, programming)

School of Data Science

• Project cost: $43M• Estimated annual cost: $740,000

(O&M, does not include programming)

Good Neighbor Program

9

Provide a Living Wage to Full-time Employees

• Estimated annual cost included in FY2019-20 operating budget

Contribute to Affordable Housing• Estimated annual cost: TBD

Sustainability Goals• Estimated project cost: TBD

Citizen Leaders for the 21st Century

P3

TBD

10

Current State:• Total housing inventory: 6,632 beds (99% occupancy)

Future State:• House all first- and second-year students and enhance programming• Working group reviewing housing scenarios and developing a range of options

Next Steps

• Further refine ten-year implementation sequencing and financing plan

• Continue conversation with the Commonwealth around Six Year Plan and IPPA

• Optimize structure of and execute debt issuance this fall

• Enhance financial metrics/dashboard

11

Draft Financial Metrics

Leverage External Research

Investments

Organizational Excellence

Savings

First Gen Support, Student

Financial Aid

12

We should strive not simply to be great, but

also to be good...

…both outstanding and ethical

…excellent for a purpose.

We will be the leading public university in

the country in 2030 and one of the very

best in the world, whether public or private.

Jim Ryan

A Great and Good University: The 2030 Plan