President’s Report Fall Assembly

September 12, 2016

STRIVING FOR FINANCIAL STABILITY TO PROVIDE A WORLD-CLASS

LIBERAL ARTS EDUCATION

• Tightening our belts while expanding our programs • Achieving job satisfaction and career enhancement:

– Shepherd should be a desirable place to work • Balancing cost-saving initiatives with revenue-generating

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Shepherd University

FY2016 MAJOR EXPENSES

Shepherd University

Personnel CostsSalaries and Wages 26,171,350$ Employee Benefits 6,335,582$

Subtotal Personnel 32,506,932$ Non-Personnel CostsUtilities: Water, Electrical, Propane, Oil 3,409,152$ Instruction - Supplies and Other Services 2,541,972$ Informational Technology Services 1,826,494$ Telephone 291,421$ Scholarships/Student Aid 2,749,905$ Student Services 902,341$ Auxiliary Services 4,767,230$ Commencement 22,157$ All Other 1,679,053$ Depreciation (Estimate) 7,362,000$

Subtotal Other 25,551,725$ Total 58,058,657$

Note: FY2016 Figures are preliminary and unaudited.

FY2016 REVENUE - GENERAL

Shepherd University

Tuition and Fees 18,021,196$ Federal Grants and Contracts 987,850$ State and Local Grants and Contracts 4,348,940$ Private Grants and Contracts 37,339$ Sales and Services of Educational Activities 38,955$ Auxiliary Enterprises (Athletics, Bookstore, Dining Services, Residence Life, Student Center and Wellness Center)

$ 17,915,536

Other Operating Revenue 282,074$ Subtotal Operating Revenues 41,631,890$

State Appropriations 9,438,077$ Non-Operating Federal Revenue 5,274,874$ Investment Income 67,963$ Gain on Disposal of Equipment 6,562$ Gifts 1,259,462$

Subtotal Non-Operating Revenues 16,046,937$ Total 57,678,828$

Note: FY2016 Figures are preliminary and unaudited.

COST-SAVING INITIATIVES

Shepherd University

Declining of Presidential Perks (club memberships, leased car, extra retirement bonus)

40,160$

Reduction in Popodicon Cleaning Contract 3,125$ Reduction in Popodicon Expenses (Cable $1,424; Electric $3,600; Propane $1,200; Water $950)

7,174$

Total 50,459$ Note: Amounts Shown are Annual Savings

REVENUE-GENERATING LEADS

Shepherd University

Bond Refinancing -- Reducing 5% to 3.5% Rates Annually 250,000$

Sale of Shepherd University Merchandise (7% of Sales) Annually * 10,000$

Total 260,000$ * Proceeds are Being Deposited into a Professional Development Fund to Benefit All Employees

STRATEGIC INVESTMENTS

Shepherd University

Critical Structural Maintenance of Popodicon 100,000$

Friends of Popodicon Priceless

Multi-Use Pavilion (Recoup thru Public Private Partnerships) 230,000$ Sponsorship of Stadium Pavilion Suites (Fall 2016)

Several Multi-Year Contracts Have Been SignedExternal Evaluator of IT Infrastructure 4,132$

Students and Faculty Engaging in Flood Relief Activities 473$

169,605$ * Cash and Commitments as of 9/6/16 - - with 3 Additional Proposals Pending.

$(165,000)*

Total

FY2018 BUDGET TIMELINE

Shepherd University

Solicit Recommendations for Membership on the Budget Advisory Council (BAC) from Faculty Senate, Classified Employees Council, Administrative Council, Deans Council, Executive Leadership, Undergraduate and Graduate Studies

November

Message from Shepherd President to the Campus Community January

BAC Membership Recommendations Forwarded to VPF January

BAC Kick-Off Meeting with Meetings Held Biweekly January

Input of Increases in Special Fees and Essential Expense Increases January

Requests Due from the Technology Oversight Committee January

Tuition and Fees / Room and Board Recommendations Presented to the SGA February

Tuition and Fees / Room and Board Recommendations Presented to the BoG March

Budget Recommendations Presented to the Campus Community March

BAC Recommends FY2016 Budget to the Executive Leadership April

Draft Budget Finalized May

Annual Budget Presented to the BoG for Approval June

NEW INITIATIVES

• Advancing ROTC Partnerships • Center for Regional Innovation • Development of Tabler Farm • Enhancement of IT Services • Enhancement of Student Internship Opportunities • Faculty and Students Helping in Flood-Ravaged Areas • New Banners on Campus • New Residential Hall - - In Progress • President’s Lecture Series, as Part of Lifelong Learning Program • Public-Private Partnership to Support the Business School Initiative • Offering Metro Scholarship Rates to Enhance Recruitment and Retention • Sara Cree Demolition (How can we continue to honor Dr. Cree’s legacy?) • Special Employee Benefits • Sustainable Shepherd • University Healthcare at Shepherd University

Shepherd University

ROTC INITIATIVES

Advancing ROTC Partnerships • Work has been done exploring requirements for offering Air Force or

Army ROTC programs at Shepherd. • Conversations have taken place over the summer with Army ROTC

Leadership from Mount St. Mary and Hood College regarding a possible ‘Cross-town’ partnership between Shepherd and Hood College.

• The Army ROTC Military Science Department Chair, from Mount St. Mary’s University, visited Shepherd University at the end of July.

• Final approval for a Cross-town partnership between Shepherd and Hood College is being considered by the Hood College Leadership and the Department of Defense.

Shepherd University

TABLER FARM: FUTURE DEVELOPMENT SITE FOR SHEPHERD’S GROWTH

Shepherd University

Robert C. Byrd Science Scarborough Library

Erma Ora Byrd Snyder Hall

Frank Center Student Center

Knutti Hall White Hall

Robert C. Byrd Center for Congressional History and Education

Kenamond Hall - August 26th Butcher Center - October 2016

Shaw and Thacher Halls - August 26th Stutzman-Slonaker Hall - October 2016

Scarborough Library - August 26th CCA II - November 2016

Turner Hall - August 26th Miller Hall - November 2016

Football Stadium - September 1st Gardiner Hall - TBD

McMurran Hall - September 2016 Ikenberry Hall - TBD

Wellness Center - September 2016Note: Wi-Fi Updates Can be Found at http://www.shepherd.edu/itservices/guestwifi

Buildings to Have Guest Wi-Fi Access Available by September 1st

New Access Point Deployment for Remaining Buildings

IMMEDIATE NEEDS: IMPROVED IT INFRASTRUCTURE AND EXPANDED SERVICES; GUEST WI-FI AND IMPROVED WI-FI EXPERIENCE FOR STUDENTS

Shepherd University

HOW CAN SHEPHERD BE A DESIRABLE PLACE TO WORK?

• Salaries are low. • Employees have been asked to do more with less support. • Turning the tables: If increased student enrollment and

retention are cornerstones for our financial stability and success, and will drive new staff and faculty hires to advance current and new programs, then let’s HIRE!

• Since July 1, 2016 - - the 120-day hiring freeze was lifted, resulting in the hiring of 15 full-time staff, 4 part-time staff and 11 full-time faculty.

• 9 additional full-time and 3 part-time positions are under recruitment.

• We are closely monitoring student enrollment and retention rates: A pilot program offering a Metro Scholarship rate will be deployed.

Shepherd University

OFF CAMPUS MERCHANTS PROGRAM • Off-Campus Merchants accepting Rambler as a form of payment

wherever you see “Rambler Card taken here!” – 7-11 – Dairy Queen – Domino’s Pizza – King’s Pizza – McDonalds – Sheetz – Shepherdstown Sweet Shop Bakery – Shepherdstown Town Hall (Utility Bills) – Subway

Shepherd University

MEALS TO GO PROGRAM • New Dining Services Staff Meal Plans now available

– Go to http://shepherddining.com/ for more information

RAMBLER PERKS PARTNERS • Present your Rambler card to receive your perks!

– Brown’s Tire, Towing and Auto Care Center • Free towing from Shepherd campus to Brown’s Tire • Free shuttle service to/from Brown’s Tire to Shepherd campus

– China Kitchen (Students Only) • Lunch menu available all day

– Complete Auto Repair Service (C.A.R.S.) • 10% off parts or labor (whichever is higher) up to $1,000 • $4.00 off oil change • $10.00 State inspections

– Four Seasons Books • 15% off any regularly priced merchandise

– Shepherdstown Pharmacy • $2.00 off over-the-counter medicines ($2.00 minimum purchase)

– Two Rivers Treads • 10% off any regularly priced merchandise

– Hoss’s Steak and Sea House – Aikens Center, Martinsburg • 10% discount on purchases (not including value meals)

– La Trattoria “Italian Eatery” – Lutz Avenue, Martinsburg • 10% discount off check total (excludes beer, wine, tax and tips)

Shepherd University

SPECIAL EMPLOYEE BENEFITS AND DISCOUNTS

• AT&T – 15% account discount plus 20% accessory discount. • BB&T – BB&T@Work program offers exclusive bundles of

premium discounts and savings on BB&T products and services.

• Costco National Membership Program – New customers receive coupons for free products and other savings.

• Aflac – Enroll for special employee rates on multiple insurance plans.

• Ours Lawyer Lewis & Co., PPLC – 10% discount on tax preparation fees.

Shepherd University

FACULTY/STAFF INSTITUTIONAL ACHIEVEMENTS

• Monthly Institutional Highlights (Formal Communication Committee)

• Slideshow on Shepherd University Website • New Banners on Campus • How Can We Enjoy Working at Shepherd Suggestions?

Shepherd University

President’s Report Fall Assembly

September 12, 2016