Meeting Information, Board of Visitors, May 20-21, 2013

From www.virginia.edu/bov/meetings/13may/index.html 27 June 2013

Meeting Information - Schedule, Agendas and Summaries Monday, May 20, 2013

Time Schedule

8:15 a.m. - 8:30 a.m. Medical Center Operating Board - Transitional Care Hospital (Open and Executive Session) (4th Floor - Emily Couric Clinical Cancer Center)

8:30 - 11:30 a.m. Medical Center Operating Board (Open and Executive Session) (4th Floor - Emily Couric Clinical Cancer Center)

11:30 a.m. - 12:30 p.m.

Break

12:30 - 1:00 p.m. Preliminary Meeting (Board Room, The Rotunda)

1:00 - 1:30 p.m. Buildings and Grounds Committee (Board Room, The Rotunda)

1:30 - 2:45 p.m. Finance Committee (Board Room, The Rotunda)

2:45 - 3:00 p.m. Executive Committee (Board Room, The Rotunda)

3:00 - 3:30 p.m. Break

3:30 - 5:15 p.m. Educational Policy Committee (Room 123, Rouss and Robertson Halls)

5:15 - 5:45 p.m. Executive Session - Personnel, Legal (Room 123, Rouss and Robertson Halls)

5:45 - 6:00 p.m. Open Session - Vice Rector Appointment, Board Manual Changes (Room 123, Rouss and Robertson Halls)

6:00 - 7:15 p.m. Break

7:15 p.m. Dinner with Special Guest - The Honorable Eric D. Fingerhut


Tuesday, May 21, 2013

Time Schedule

8:00 - 8:30 a.m. Audit and Compliance Committee (Open and Executive Session) (Board Room, The Rotunda)

8:30 - 9:00 a.m. Committee on The University of Virginia's College at Wise (Board Room, The Rotunda)

9:00 - 9:30 a.m. Advancement and Communications Committee (Board Room, The Rotunda)

9:30 - 9:45 a.m. Break

9:45 a.m. - 12:00 p.m.

Special Committee on Strategic Planning (Board Room, The Rotunda)

12:00 - 1:15 p.m. Break

1:15 - 1:30 p.m. Report from the Vice Chair of the Medical Center Operating Board (Board Room, The Rotunda)

1:30 - 2:15 p.m. Executive Session (Board Room, The Rotunda)

2:15 - 3:00 p.m. Final Session (Board Room, The Rotunda)

*The scheduled start times are flexible depending upon the course of business.

Materials

Agendas and Summaries (PDF Files)

• Docket

• Medical Center Operating Board - Monday, May 20, 8:15 a.m. - MCOB Book - - Transitional Care Hospital Book

• Preliminary Meeting - Monday, May 20, 12:30 p.m.. - Materials

• Buildings and Grounds - Monday, May 20, 1:00 p.m. - Materials - Presentation

• Finance - Monday, May 20, 1:30 p.m. - Materials - Presentation - Budget Summary

• Executive - Monday, May 20, 2:45 p.m. - Materials


• Educational Policy - Monday, May 20, 3:30 - Materials - Student Perspective on MOOCS Presentation

• Audit & Compliance - Tuesday, May 21, 8:00 a.m. - Materials

• The University of Virginia's College at Wise, Fri., Tuesday, May 21, 8:30 a.m. - Materials - Construction Update Presentation - Faculty Representative Presentation

• Advancement and Communications - Tuesday, May 21, 9:00 a.m. - Materials - Presentation

• Special Committee on Strategic Planning - Tuesday, May 21, 9:45 a.m. - Materials - President Sullivan's Presentation - Art & Science Report - Executive Summary - Art & Science Report - Part I & II - A&S Report - Competitive Peer Data - Comparison School Study - Art & Science Presentation - Handouts - Matrix of Other Institutions Plans - Ideas that Are Not in Strategic Plan

• Faculty Personnel Actions

• Minutes

DOCKET

BOARD OF VISITORS

University of Virginia

Regular Meeting

May 21, 2013

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DOCKET BOARD OF VISITORS

May 21, 2013

CONSENT ITEMS 1. APPROVAL TO AMEND THE DELEGATION OF AUTHORITY

IN THE WORKING CAPITAL INVESTMENT POLICY (approved by the Finance Committee on May 20, 2013)

WHEREAS, the University’s Working Capital Investment

Policy authorizes the Vice President and Chief Financial Officer to manage, and further delegate the management of, investments made under the policy; and

WHEREAS, the University currently does not have a Vice President and Chief Financial Officer;

RESOLVED, the Board of Visitors authorizes the Executive Vice President and Chief Operating Officer to manage investments under the Working Capital Investment Policy and further delegate or revoke such responsibility under the program. 2. AMENDMENTS TO DEFINED CONTRIBUTION RETIREMENT

PLANS (approved by the Finance Committee on May 20, 2013)

RESOLVED, the Optional Retirement Plan for Employees of the University of Virginia is amended such that a separated employee may receive benefits from the Plan any time on or after the day he or she separates from service; and

RESOLVED FURTHER, the Optional Retirement Plan for Employees of the UVa Medical Center is amended to grant employees who became eligible employees as a result of the Medical Center’s acquisition of Albemarle Arthritis Associates (AAA), LLP, effective May 26, 2013, the right to apply months of service performed on behalf of AAA toward fulfilling the vesting period requirement.

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3. APPROVAL TO PURCHASE 560 RAY C. HUNT DRIVE, CHARLOTTESVILLE, VIRGINIA FROM THE UNIVERSITY OF VIRGINIA FOUNDATION

(approved by the Finance Committee on May 20, 2013) WHEREAS, the Board of Visitors finds it to be in the best interest of the University of Virginia to purchase from the University of Virginia Foundation (the “Foundation”) land and improvements thereon located at 560 Ray C. Hunt Drive, Charlottesville, Virginia (the “Property”) at a purchase price not to exceed $15,850,000;

RESOLVED, the Board of Visitors approves the acquisition of the Property; and

RESOLVED FURTHER, the Executive Vice President and Chief Operating Officer is authorized, on behalf of the University, to approve and execute purchase agreements and related documents, to incur reasonable and customary expenses, and to take such other actions as deemed necessary and appropriate to consummate such property acquisition; and

RESOLVED FURTHER, all prior acts performed by the

Executive Vice President and Chief Operating Officer, and other officers and agents of the University, in connection with such property acquisition, are in all respects approved, ratified, and confirmed. ACTION ITEMS

4. APPROVAL OF THE AUDIT SCHEDULE FOR FISCAL YEAR

2013-2014 (approved by the Audit and Compliance Committee on May 21, 2013)

RESOLVED, the Audit Schedule for fiscal year 2013-2014

is approved as recommended by the Audit and Compliance Committee.

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5. APPROVAL OF THE CORPORATE COMPLIANCE PROJECT SCHEDULE FOR FISCAL YEAR 2013-2014 (approved by the Audit and Compliance Committee on May 21, 2013)

RESOLVED, the Corporate Compliance Project Schedule for fiscal year 2013-2014 is approved as recommended by the Audit and Compliance Committee. 6. APPROVAL OF THE SUMMARY OF AUDIT FINDINGS FOR

THE PERIOD OCTOBER 1, 2012 THROUGH JANUARY 31, 2013 (approved by the Audit and Compliance Committee on May 21, 2013) RESOLVED, the Summary of Audit Findings for the period

October 1, 2012 through January 31, 2013, as presented by the Chief Audit Executive, is approved as recommended by the Audit and Compliance Committee. 7. APPROVAL OF PROJECT BUDGET AND SCOPE REVIEW,

ALDERMAN ROAD RESIDENCE HALLS BUILDING #6 (approved by the Buildings and Grounds Committee and the Finance Committee on May 20, 2013)

RESOLVED, an $8.0 million increase to the Alderman Road Residence Halls Building #6 to a revised budget range of $36.0 - $38.0 million and an 18,000 gross square feet increase in scope to 74,898 gross square feet is approved.

RESOLVED FURTHER, the financial plan for the Alderman Road Residence Halls Building #6 is complete and approved.

8. APPROVAL OF ADDITION TO THE UNIVERSITY’S MAJOR

CAPITAL PROJECTS PLAN – FACILITIES MANAGEMENT SHOP SUPPORT/OFFICE BUILDING (approved by the Buildings and Grounds Committee and the Finance Committee on May 20, 2013)

RESOLVED, the Facilities Management Shop Support/Office Building at an estimated project cost of $5-6 million, is added to the Major Capital Projects Program.

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RESOLVED FURTHER, the financial plan for the Facilities Management Shop Support/Office Building is complete and approved. 9. APPROVAL TO ESTABLISH THE JAMES C. SLAUGHTER

DISTINGUISHED PROFESSORSHIP IN LAW (approved by the Educational Policy Committee on May 20, 2013)

WHEREAS, James C. Slaughter of New York took a degree from the College of Arts & Sciences in 1949, and a Juris Doctor from the School of Law in 1951; and WHEREAS, Mr. Slaughter had a long and successful career in law and business in New York City, serving as a partner in the firm of Hahn & Hessen, vice president and director of Reeves Brothers, Inc., chairman and chief executive officer of the New York financial firm James Talcott, Inc., and chairman emeritus of Associated Metals and Minerals Corporation; and

WHEREAS, Mr. Slaughter was a patron and leader of a

number of cultural institutions, both in New York and abroad. He was the managing director of The Horace W. Goldsmith Foundation and served on the boards of the Metropolitan Opera, Carnegie Hall, the Jerusalem Foundation, and the American Friends of the British Museum, and he was a member of the American Associates of the Royal Academy; and

WHEREAS, Mr. Slaughter, personally and through the Horace W. Goldsmith Foundation, was a generous benefactor of the School of Law. He served as a trustee of the Law School Foundation and a member of the executive committee for two capital campaigns. He paved the way for the Law Grounds project by funding the acquisition of the former Darden School building, which was renamed and dedicated Slaughter Hall in November 1996. He created the Horace W. Goldsmith Research Professorship in Law, which now supports two chairholders; and

WHEREAS, Mr. Slaughter was a generous donor to other areas of the University and established, with the Horace W. Goldsmith Foundation, the Horace W. Goldsmith Teaching Professorship in the Humanities in the College of Arts & Sciences; and

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WHEREAS, Mr. Slaughter’s nephew, William A. Slaughter, on behalf of the Horace W. Goldsmith Foundation, contributed funds to support a professorship in Mr. Slaughter’s name, and together with the School of Law, agreed to reallocate gift principal from the Horace W. Goldsmith Research Professorship in Law to the new professorship;

RESOLVED, the Board of Visitors establishes the James C. Slaughter Distinguished Professorship in Law; and RESOLVED FURTHER, the Board thanks William A. Slaughter and the Horace W. Goldsmith Foundation for their generosity to the University and to the School of Law.

10. COMMERCE COMMONWEALTH PROFESSORSHIPS AND THE

ROLLS-ROYCE PROFESSORSHIPS IN ENGINEERING (approved by the Educational Policy Committee on May

20, 2013) WHEREAS, Rolls-Royce plc has major businesses in

civil aerospace, defense aerospace, marine propulsion, and energy, with 40,000 employees worldwide, and opened a jet engine manufacturing plant in Virginia; and

WHEREAS, as part of a strategic education and research

partnership among Rolls-Royce, the Commonwealth, the University of Virginia, Virginia Tech, Virginia State University, and the Virginia Community College System, the Commonwealth created nine endowed professorships distributed equally among the University’s School of Engineering and Applied Science and McIntire School of Commerce, and Virginia Tech’s College of Engineering; and

WHEREAS, the professorships in the McIntire School of Commerce and the School of Engineering serve to enhance the curriculum in areas of interest to Rolls-Royce and the Commonwealth;

RESOLVED, the Board of Visitors establishes three Commerce Commonwealth Professorships in the McIntire School of Commerce, and three Rolls-Royce Professorships in Engineering in the School of Engineering and Applied Science;

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RESOLVED FURTHER, the Board thanks Rolls-Royce and the Commonwealth of Virginia for making these professorships possible.

11. APPROVAL TO ESTABLISH THE WILLIAM STAMPS FARISH

ENTREPRENEURIAL RESEARCH PROFESSORSHIP IN THE SCHOOL OF COMMERCE

(approved by the Educational Policy Committee on May 20, 2013)

WHEREAS, William Stamps Farish II received a law degree from the University of Mississippi in 1900; and

WHEREAS, William Stamps Farish II was a pioneer in east Texas oilfield development, president of Standard Oil, and a founding member and president of the American Petroleum Institute; and

WHEREAS, his grandson, William Stamps Farish III, a

businessman and entrepreneur in his own right, took a degree in 1962 from the College of Arts & Sciences; and

WHEREAS, in 1982, William Stamps Farish III created the William Stamps Farish Professorship in Free Enterprise in the McIntire School of Commerce; and

WHEREAS, in 1989, Mr. Farish III created the William Stamps Farish Entrepreneurial Research Professorship in the School of Commerce; and WHEREAS, the entrepreneurial research professorship comes now to the Board of Visitors for formal establishment;

RESOLVED, the Board of Visitors establishes the William Stamps Farish Entrepreneurial Research Professorship to attract and retain an eminent scholar in entrepreneurial studies in the McIntire School of Commerce; RESOLVED FURTHER, the Board thanks William Stamps Farish III for his generosity to the University and the McIntire School of Commerce.

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12. APPROVAL OF NEW DEGREE PROGRAM: BACHELOR OF SCIENCE IN ASTRONOMY

(approved by the Educational Policy Committee on May 20, 2013)

RESOLVED, subject to approval by the State Council of

Higher Education for Virginia, the Bachelor of Science in Astronomy is established in the College of Arts and Sciences. 13. APPROVAL OF NEW DEGREE PROGRAM: BACHELOR OF

PROFESSIONAL STUDIES IN HEALTH SCIENCES (approved by the Educational Policy Committee on May

20, 2013)

RESOLVED, subject to approval by the State Council of Higher Education for Virginia, the Bachelor of Professional Studies in Health Sciences is established in the School of Continuing and Professional Studies. 14. APPROVAL OF NEW DEPARTMENT: DEPARTMENT OF

KINESIOLOGY (approved by the Educational Policy Committee on May

20, 2013) RESOLVED, subject to approval by the State Council of

Higher Education for Virginia, the Department of Kinesiology is established in the Curry School of Education. 15. APPROVAL OF GUIDELINES ON PRIORITY COURSE

ENROLLMENT FOR MILITARY-RELATED STUDENTS (approved by the Educational Policy Committee on May

20, 2013) RESOLVED, the Board of Visitors affirms the Guidelines

on Priority Course Enrollment for Military-Related Students; and

RESOLVED FURTHER, the Guidelines shall be communicated

to the State Council of Higher Education for Virginia and published in future editions of the Undergraduate Record and Graduate Record.

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16. REVISIONS TO THE MANUAL OF THE BOARD OF VISITORS OF THE UNIVERSITY OF VIRGINIA

(recommended by the Executive Committee on May 20, 2013)

RESOLVED, the Board of Visitors authorizes amendments to the Manual of the Board of Visitors of the University of Virginia, 2004 edition, as amended through November 9, 2012 (the Manual), to conform the provisions of the Manual to the Code of Virginia, and to make other changes as reflected in the attached document dated May 20, 2013. 17. APPROVAL OF THE 2013-2014 OPERATING BUDGET AND

ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE ACADEMIC DIVISION (approved by the Finance Committee on May 20, 2013)

RESOLVED, the 2013-2014 Operating Budget and Annual Renovation and Infrastructure Plan for the Academic Division is approved, as recommended by the President and the Chief Operating Officer.

RESOLVED FURTHER, the University will use the approved operating budget to update the four-year plan, Financing Academic Excellence, to roll forward future multi-year planning.

18. APPROVAL OF THE 2013-2014 OPERATING BUDGET FOR

THE UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE (approved by the Finance Committee on May 20, 2013)

RESOLVED, the 2013-2014 Operating Budget for The

University of Virginia’s College at Wise is approved as recommended by the President and the Chief Operating Officer. 19. APPROVAL OF THE 2013-2014 OPERATING AND CAPITAL

BUDGETS AND ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE UNIVERSITY OF VIRGINIA MEDICAL CENTER (approved by the Finance Committee and the Medical Center Operating Board on May 20, 2013)

RESOLVED, the 2013-2014 Operating and Capital Budgets and the Annual Renovation and Infrastructure Plan for the University of Virginia Medical Center are approved, as recommended by the President, the Executive Vice President

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and Chief Operating Officer, and the Medical Center Operating Board.

20. APPROVAL OF THE 2013-2014 OPERATING AND CAPITAL

BUDGETS FOR THE UNIVERSITY OF VIRGINIA TRANSITIONAL CARE HOSPITAL

(approved by the Finance Committee and the Medical Center Operating Board on May 20, 2013)

RESOLVED, the 2013-2014 Operating and Capital Budgets for the University of Virginia Transitional Care Hospital, presented as a component of the Medical Center Operating Budget, are approved, as recommended by the President, the Executive Vice President and Chief Operating Officer, and the Medical Center Operating Board. 21. APPROVAL OF PRATT FUND DISTRIBUTION FOR 2013-

2014 (approved by the Finance Committee on May 20, 2013)

RESOLVED, the budget for the expenditure of funds from

the Estate of John Lee Pratt is approved to supplement appropriations made by the Commonwealth of Virginia for the School of Medicine and the Departments of Biology, Chemistry, Mathematics, and Physics in the College of Arts and Sciences. Departmental allocations, not to exceed $7,240,000 for 2013-2014, are suggested by the department chairs and recommended by the dean of each school; the disbursement of each allotment will be authorized by the Executive Vice President and Provost. To the extent the annual income from the endowment is not adequate to meet the recommended distribution, the principal of the endowment will be disinvested to provide funds for the approved budgets. 22. APPOINTMENTS AND REAPPOINTMENTS TO THE BOARD OF

THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE (approved by the Committee on The University of Virginia’s College at Wise on May 21, 2013)

RESOLVED, Messrs. Paul D. Buchanan, James N.L.

Humphreys, and Lewey K. Lee, are reappointed to The University of Virginia's College at Wise Board for four-year terms ending June 30, 2017, in accordance with the Board’s bylaws;

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FURTHER RESOLVED, Ms. Merry Lu Prior and Messrs. Edward H. Baine and Robert F. Stallard are appointed to The University of Virginia’s College at Wise Board for four-year terms ending June 30, 2017, in accordance with the Board’s bylaws.

23. APPROVAL OF SCHEV ENROLLMENT PROJECTIONS FOR

FALL 2013-2019 (approved by the Committee on The University of Virginia’s College at Wise on May 21, 2013)

WHEREAS, The University of Virginia’s College at Wise is committed to the managed growth of its student body; and WHEREAS, The University of Virginia’s College at Wise is committed to recruiting and retaining an academically talented and diverse student body; RESOLVED, the proposed enrollment projections for The University of Virginia’s College at Wise for the period of fall 2013 through fall 2019 are approved as follows: Term Total Headcount Student FTE Fall 2013 2,432 1,714 Fall 2014 2,444 1,724 Fall 2015 2,468 1,739 Fall 2016 2,493 1,757 Fall 2017 2,518 1,775 Fall 2018 2,543 1,792 Fall 2019 2,568 1,810

ATTACHMENT

RED-LINED VERSION OF BOV MANUAL MAY 20, 2013

FOR EXECUTIVE COMMITTEE – MAY 20, 2013

MANUAL OF

THE BOARD OF VISITORS OF THE

UNIVERSITY OF VIRGINIA

2004

[Revised to reflect changes through November 9, 2012]

MANUAL

OF THE BOARD

OF VISITORS

OF THE

UNIVERSITY

OF VIRGINIA

2004

University of Virginia Press Charlottesville and London

First issued by the University Press of Virginia in 1967 New edition 2005

Printed in the United States of America

TABLE OF CONTENTS

RECTORS OF THE UNIVERSITY OF VIRGINIA i PRESIDENTS OF THE UNIVERSITY OF VIRGINIA ii PREFACE iii 1 STATEMENT OF INSTITUTIONAL PURPOSE 1 2 THE BOARD OF VISITORS 2 2.1 Corporate Name and Governing Body 2.2 Composition 2.21 Student Nonvoting Member 2.22 Visitors Emeriti 2.3 Meetings 2.31 The Annual Meeting 2.32 Regular Meetings 2.33 Special Meetings 2.34 Notice of Meetings 2.35 Quorum 2.36 Telephonic or Video Participation 2.37 Dockets 2.38 Conduct of Business 2.4 Powers and Duties 3 THE COMMITTEE SYSTEM 6 3.1 The Executive Committee 3.2 Standing Committees 3.21 Finance Committee 3.22 Buildings and Grounds Committee 3.23 Student Affairs and Athletics Committee 3.24 Educational Policy Committee 3.25 Audit and Compliance Committee 3.26 Advancement and Communications Committee 3.27 The Committee on The University of Virginia’s College at Wise 3.28 The Medical Center Operating Board 3.3 Special Committees 4 OFFICERS OF THE BOARD 9 4.1 The Rector and Vice Rector of the University 4.11 Terms of Office and Election 4.12 Powers and Duties 4.13 Vacancies 4.14 Rector pro Tempore 4.2 The President of the University 4.21 Election 4.22 Powers and Duties 4.3

4.4 Powers and Duties of the Chief Operating Officer Powers and Duties of the Provost

4.5 Secretary to the Board of Visitors 4.51 Powers and Duties 4.6 General Counsel of the University 4.61 Election 4.62 Powers and Duties 5 MISCELLANEOUS PROVISIONS 13 5.1 Appeals to the Board 5.2 Retirement 5.3 Communications to the Board 5.4 Minutes of Board Meetings 5.41 Clerk of the Board 5.5 Execution of Instruments 5.6 Assignment of Securities 5.7 The Manual 5.8 Distribution of the Manual 5.9 Amendments to the Manual 5.10 Effective Date of the Manual

Appendixes

A THOMAS JEFFERSON ON HIGHER EDUCATION: DOCUMENTS RELATIVE TO THE FOUNDING OF THE UNIVERSITY OF VIRGINIA

1 INTRODUCTION, BY JOHN COOK WYLLIE 15

2 THE STATUTE OF 1818 18

3 PROCEEDINGS AND REPORT OF THE COMMISSIONERS FOR THE UNIVERSITY OF VIRGINIA 20


B THE BOARD OF VISITORS FROM 1819 THROUGH 2011 38

C PERTINENT LEGAL PROVISIONS RELATING TO THE UNIVERSITY OF VIRGINIA EXCERPTED FROM THE CODE OF VIRGINIA, 1950, AS AMENDED THROUGH THE REGULAR SESSION OF THE 2010 GENERAL ASSEMBLY 48

RECTORS OF THE UNIVERSITY OF VIRGINIA

Thomas Jefferson 1819–1826 James Madison 1826–1834 Joseph C. Cabell 1834–1836 Chapman Johnson 1836–1845 Joseph C. Cabell 1845–1856 Andrew Stevenson 1856–1857 Thomas J. Randolph 1857–1864 T. L. Preston 1864–1865 Alexander Rives 1865–1866 B. Johnson Barbour 1866–1872 R. G. H. Kean 1872–1876 Alex. H. H. Stuart 1876–1882 Wyatt M. Elliott 1882–1884 W. Roane Ruffin 1884–1886 Alex. H. H. Stuart 1886–1887 John L. Marye 1887–1890 W. C. N. Randolph 1890–1897 Armistead C. Gordon 1897–1898 Charles P. Jones 1898–1906 Armistead C. Gordon 1906–1918 R. Tate Irvine 1918–1920 John Stewart Bryan 1920–1922 C. Harding Walker 1922–1930 Frederic W. Scott 1930–1939 Robert Gray Williams 1939–1946 Edward R. Stettinius Jr. 1946–1949 Barron Foster Black 1949–1956 Frank Talbott Jr. 1956–1960 Albert Vickers Bryan 1960–1964 Charles Rogers Fenwick 1964–1966 Frank W. Rogers 1966–1970 Joseph H. McConnell 1970–1976 William L. Zimmer III 1976–1980 D. French Slaughter Jr. 1980–1982 Frederick G. Pollard 1982–1987 Joshua P. Darden Jr. 1987–1990 Edward Elliott Elson 1990–1992 Hovey S. Dabney 1992–1998 John P. Ackerly III 1998–2003 Gordon F. Rainey Jr. 2003–2005 Thomas F. Farrell II 2005–2007 W. Heywood Fralin 2007–2009 John O. Wynne 2009–2011 Helen E. Dragas 2011– Formatted: Left

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2013 .

PRESIDENTS OF THE UNIVERSITY OF VIRGINIA

Edwin Anderson Alderman 1904–1931 John Lloyd Newcomb, Acting President 1931–1933 John Lloyd Newcomb 1933–1947 Colgate Whitehead Darden Jr. 1947–1959 Edgar Finley Shannon Jr. 1959–1974 Frank Loucks Hereford Jr. 1974–1985 Robert Marchant O’Neil 1985–1990 John Thomas Casteen III 1990–2010

Teresa Ann Sullivan 2010–

Formatted: Centered, Space After: 0 pt, Linespacing: single

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PREFACE

THE UNIVERSITY of Virginia is an educational institution of the Commonwealth of Virginia. The duties and powers of its governing body, the Board of Visitors, are set forth in general terms in the statutes of the State, of which those most pertinent are printed in an appendix to this Manual. The portions of the Code of Virginia that treat the general organization and governance of the University may be found in Va. Code Sections 23-62 et seq. The Board itself, however, largely determines its internal organization, its procedures of operation, and the responsibilities of the administrative officers selected by it to carry out its directives of policy and program.

On 12 September 1947 the Board adopted a Manual for the purpose of setting forth its powers and duties and those of the principal administrative officers in order to “clarify the manner in which the Board and such administrative officers shall function.” This Manual was replaced in 1966 by a completely revised edition that, with several amendments, served as the controlling statement of the Board’s procedure and practice until a revised Manual was adopted by the Board on 30 May 1975. This present edition of the Manual includes a revised Statement of Purpose adopted by the Board on 31 May 1985, as well as amendments approved since the 1975 edition and the editions of 1985, 1991, and 1998. These amendments reflect changes in how the Board organizes itself and conducts its business, as well as changes in the administrative structure of the University.

It is hoped that the Manual will give to interested persons, and to new members of the Board in particular, an understanding of the manner in which the Board functions and of its relation to the administrative officers. It cannot, of course, convey an adequate impression of the spirit and traditions of the University, which so often guide the decisions of the Board. Nor can it adequately express the resolve that at all times has animated the members of the Board—to realize Mr. Jefferson’s high aspirations for the institution.

The revisions to the Manual in 1966 were done by Mr. Lawrence Lewis Jr. of the Board and by Mr.

Weldon Cooper as Secretary to the Board. Mr. Lewis was chairman of the Board committee that compiled the 1975 edition; Mr. Robert P. Buford and Mr. W. Wright Harrison of the Board were members of the committee, as well as Mr. Raymond C. Bice Jr., who was the Board Secretary. Mr. Charles K. Woltz of the Law School faculty acted as consultant to both the 1966 and 1975 committees. Edgar F. Shannon Jr. was President of the University at the time of the 1966 revision, and Frank L. Hereford Jr. was President in 1975.

Further revisions were undertaken in 1991, during the rectorship of Edward Elliott Elson, and in 1997,

during the rectorship of Hovey S. Dabney. John T. Casteen III was President of the University in both instances. The 1991 revisions were directed by the Executive Committee of the Board of Visitors under the chairmanship of Mr. Elson. The 1997 revisions were done by a special committee of the Board appointed by Mr. Dabney and under the chairmanship of Mr. Champ Clark. Modifications to these revisions were made in 1998 under the supervision of Mr. Clark and at the beginning of the rectorship of John P. Ackerly III; the Board Secretary, Alexander G. Gilliam Jr., assisted in the 1997 and 1998 revisions.

Work on the present edition of the Manual began in the fall of 2003 under the rectorship of Gordon F. Rainey Jr., who asked Mr. Don R. Pippin of the Board and Mr. Gilliam to undertake the task. This edition was approved by the Board of Visitors on 31 July 2004. John T. Casteen III was President of the University.

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In the spring of 2011, the online version of the Manual was updated to include all amendments approved

by the Board of Visitors since the publication of the 2004 edition. Lists of Board Members, Presidents, Rectors, Student Members, and Secretaries were updated. The Code of Virginia provisions relating to the University were also updated and additions made. Further changes were made in February 2012 adding the Provost as an officer of the Board and updating the list of Board of Visitors. This work was undertaken by Susan G. Harris, Secretary to the Board, and Teresa A. Sullivan was President of the University.

In November 2012, additional changes were made to the online version of the Manual. These revisions were recommended to the executive committee by a special committee on governance and engagement formed by Ms. Helen E. Dragas, Rector, under the chairmanship of Mr. George Keith Martin and Mr. John L. Nau III, and affirmed by the Board of Visitors at a regular meeting held on 9 November 2012. Ms. Harris assisted in the revisions.

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MANUAL OF



2004

1

STATEMENT OF INSTITUTIONAL PURPOSE

ON 19 MARCH 1985, with the concurrence of the President, the Faculty Senate of the University of Virginia adopted a new Statement of Institutional Purpose to replace the statement that had been in effect since 17 May 1974. This statement subsequently was recommended by the President to the Board of Visitors, who on 31 May 1985 adopted the Statement of Institutional Purpose reading as follows:

The central purpose of the University of Virginia is to enrich the mind by stimulating and sustaining a spirit of free inquiry directed to understanding the nature of the universe and the role of mankind in it. Activities designed to quicken, discipline, and enlarge the intellectual and creative capacities, as well as the aesthetic and ethical awareness, of the members of the University and to record, preserve, and disseminate the results of intellectual discovery and creative endeavor serve this purpose. In fulfilling it, the University places the highest priority on achieving eminence as a center of higher learning.

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MANUAL OF THE BOARD OF VISITORS

2

THE BOARD OF VISITORS THE GOVERNING body of the University of Virginia is the Board of Visitors, which by statute is made responsible for seeing to the effective government of the University at Charlottesville and all other educational institutions under the governance of the Board of Visitors. SECTION 2.1 CORPORATE NAME AND GOVERNING BODY—The University is a public corporation that by statute bears the name of “The Rector and Visitors of the University of Virginia.” By statute also the governing body of the corporation, which exercises all the powers vested in The Rector and Visitors of the University of Virginia, is styled the “Board of Visitors” and shall hereafter be referred to as such or as “Board” in this Manual. SECTION 2.2 COMPOSITION—The Board of Visitors is composed of seventeen members appointed by the Governor, subject to confirmation by the Senate and the House of Delegates of Virginia, for terms of four years. Members may be reappointed for one additional four-year term. At least twelve of the seventeen members must be from the Commonwealth at large, at least twelve shall be alumni or alumnae of the University of Virginia, and at least one shall be a physician with administrative and clinical experience in an academic medical center.

The statute provides that for each vacancy on the Board of Visitors, the Alumni Association of the

University of Virginia shall propose three names to the Governor for possible appointment. Such proposals, however, are advisory only, and the Governor may appoint persons other than those recommended by the Alumni Association. A vacancy on the Board is filled by the Governor for the unexpired term, subject, of course, to confirmation by the Senate and the House of Delegates. A person filling an unexpired term may be reappointed by the Governor for two additional four-year terms. SECTION 2.21 STUDENT NONVOTING MEMBER—At the first regular meeting of the second semester of the academic session each year, on recommendation of the Executive Committee, the Board of Visitors may elect for a term of one year, a full-time student at the University of Virginia as a nonvoting member of the Board of Visitors, in addition to those members appointed by the Governor and referred to in Section 2.2 above. Such student may attend and participate in a nonvoting capacity in all deliberations and meetings, in Open and Executive Session, of the standing and special committees of the Board as well as meetings of the Board of Visitors itself. SECTION 2.22 VISITORS EMERITI—In recognition of the invaluable service they render to the University during their terms of office and the informed counsel they may continue to provide after their terms expire, former Members of the Board shall be designated Visitors Emeriti. SECTION 2.3 MEETINGS—Meetings of the Board are of three kinds: the Annual Meeting, regular meetings, and special meetings. Discussions and actions on any topic not specifically exempted by the Virginia Freedom of Information Act shall be held in an open meeting, which shall be open to the public. Any official action taken in Executive (closed) Session shall be approved in an open meeting before it can have any force or effect.

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THE BOARD OF VISITORS

SECTION 2.31 THE ANNUAL MEETING—The one meeting each year required by statute is known as the Annual Meeting and is required to be held at the University at Charlottesville. At this meeting the Board elects an Executive Committee, and reviews and decides on such other matters as may come before it. The Rector announces committee assignments and the committee chairs at the Annual Meeting. The date for the Annual Meeting is prescribed by the Board at the Annual Meeting in the preceding calendar year. On the recommendation of the Rector and the President, the date and time of the Annual Meeting may be changed by the Executive Committee. SECTION 2.32 REGULAR MEETINGS—There shall be such other regular meetings of the Board of Visitors each year as the Board may determine. These meetings shall be held on such dates and at such places for the succeeding year as the Board shall determine no later than the Annual Meeting each year. The time, date, and place of a regular meeting may be changed by a quorum of the Board of Visitors or by the Executive Committee. SECTION 2.33 SPECIAL MEETINGS—Special meetings of the Board may be called by the Rector or by any three Visitors at such dates, times, and places as may be specified in the call for the meeting. No matter may be considered at any special meeting that was not included in the call of that meeting except by a two-thirds vote of the Visitors present at the meeting. SECTION 2.34 NOTICE OF MEETINGS—Due notice in writing of the Annual Meeting and all regular meetings and of any changes in the dates, times, or places of a regular meeting shall be given by the Secretary of the Board of Visitors. Such written notice shall be sent at least ten days prior to the meeting. Written notice of all special meetings shall be sent by the Secretary at least five days in advance of the meeting. All notices of a special meeting shall indicate the item or items of business to be considered. Public notice of meetings shall comply with the requirements of the Virginia Freedom of Information Act. SECTION 2.35 QUORUM—A quorum for the conduct of business by the full Board of Visitors shall consist of five members of the Board (as required by statute) except in those instances where other statutory provisions, as, for example, in the consideration of revenue bond issues, may require a larger number for the transaction of particular items of business. A quorum for the Executive Committee and all standing and special committees of the Board of Visitors shall consist of one-third of the appointed members of the committee, except that in no case shall the number be fewer than three members. The quorum must be physically assembled at one primary or central meeting location. SECTION 2.36 TELEPHONIC OR VIDEO PARTICIPATION—Telephonic or video meetings of Board committees, including those held in Executive (closed) Session, may be held as long as proper and timely public notification of the meeting has been given and there is a quorum of the committee physically assembled at its primary or other location. Meetings held in Open Session must be open to the public. Arrangements for telephonic or video meetings must be coordinated with the Secretary. and shall comply with the requirements of the Virginia Freedom of Information Act. SECTION 2.37 DOCKETS—For the Annual Meeting and each regular meeting, the Secretary shall prepare, under the supervision of the Rector and the President, a docket comprising such matters as the Board, the Rector, the President, and the chairman of each standing committee shall refer for consideration. This docket shall include all the agenda items to be considered by the Board and its committees at such meetings that are known by the Rector, the President, and the Secretary at the time the docket is prepared. After receiving the

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Rector’s approval, a copy of this docket, to be called the Regular Docket, shall be mailed to each member of the Board at least ten days prior to the meeting of the Board. Consideration of matters not appearing on the Regular Docket shall require the consent of two-thirds of the Visitors present. The notice of a special meeting containing a list of the items to be considered shall take the place of the Regular Docket at a special meeting. SECTION 2.38 CONDUCT OF BUSINESS—The principles of procedure prescribed in Roberts’ Rules of Order shall provide guidance for the conduct of meetings. The Board strives to be transparent in its operations, and operates entirely openly to the extent required by law. SECTION 2.4 POWERS AND DUTIES—The powers and duties conferred upon the Board are to be exercised for the purpose of carrying into effect the Statement of Institutional Purpose contained in Chapter 1. The major powers and duties are

1 the preservation of the ideals and traditions of the University and particularly encouragement of the maintenance of the Honor System by the student body;

2 the establishment of general education policy; 3 the authorization of the establishment of any additional center, branch, college, or school and, when

necessary, the presentation of such action to the State Council of Higher Education, for its recommendation, and to the General Assembly, for its approval;

4 the authorization of the creation or discontinuation of degrees; 5 the election of a Rector, Vice Rector, President, Chief Operating Officer, Provost, and Secretary and

the election of salaried members of the faculty, except for those faculty members designated by the President during the period between meetings of the Board of Visitors, whose elections may be formally ratified by the Board at its next regular meeting (the foregoing, however, is subject to the provisions of Section 4.22);

6 the determination of the salary ranges for all faculty ranks and the establishment of insurance, retirement, and other programs for the faculty’s benefit;

7 the establishment or discontinuation of any faculty rank; 8 the approval of promotions of faculty members; 9 the establishment of named chairs; 10 the regulation of the government and discipline of students and the renting of rooms and

dormitories; 11 the approval of general policy governing student scholarships and loans; 12 the establishment of scholarships by the remission of tuition within guidelines established by the

State for undergraduate students of character and ability in need of financial assistance; 13 the fixing of tuition charges, other fees, and room rentals; 14 the issuance of revenue bonds to finance projects required by or convenient for the purposes of the

students under its control; 15 the approval of regulations relating to the use of automobiles by students; 16 the care and preservation of all property belonging to the University; 17 the purchase of real estate; 18 the sale, with the approval of the Governor, of any real estate acquired since 1 January 1900 and the

sale, with the approval of the General Assembly, of real estate acquired by purchase prior thereto; 19 the granting of easements for roads, streets, sewers, water lines, utility lines, or other purposes; 20 the exercise of the power of eminent domain; 21 provision for the submission of such reports and budget requests as may be required by the ap-

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propriate agency of the State Government; 22 the approval of the annual budget; 23 the formulation and periodic revision of long-range plans; 24 the election, on nomination of and with the concurrence of the President, of the Vice Presidents of the

University and the chief local administrative officer of The University of Virginia’s College at Wise, this officer having the title of Chancellor, all of whom are directly responsible to the President; and

25 the exercise of other powers conferred on corporations by the provisions of Title 13.1 of the Code of Virginia.

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THE COMMITTEE SYSTEM THE COMMITTEE system of the Board shall be composed of the Executive Committee, standing committees, and special committees. The Secretary of the Board shall serve as the secretary of each committee, keep the minutes of the meetings of the committees, and perform such other duties as the committees may require. The President shall make provision for such additional consultative services as may be requested by a committee chairman. In addition to the appointed members, the Rector shall be an ex officio member of all standing and special committees. SECTION 3.1 THE EXECUTIVE COMMITTEE —At each Annual Meeting the Board shall elect from among its membership an Executive Committee composed of six members. These six members shall consist of the Rector, who shall serve as chair, the Vice Rector, and four Visitors to be elected by the Board. Nominations for these four positions on the Executive Committee may be made by any Visitor, and if there are more than four nominations, a vote shall be taken, and the results shall be announced jointly by the Rector and the Secretary. Any vacancy on the Executive Committee shall be filled for the unexpired term at the next regular meeting of the Board and by vote if there is more than one nomination.

The Executive Committee shall meet upon the call of the Rector. It shall consider all matters referred to it by the Rector, the Vice Rector, or the President and shall, in the interim between meetings of the Board, be vested with the powers and authority of the full Board and shall take such action on all matters that may be referred to it as in its judgment is required. All such actions taken by the Executive Committee in the interim between meetings of the Board shall require a two-thirds vote of the whole number of committee members, and their actions shall be reported to the Board at the next regular meeting and shall, if confirmation is required, be confirmed and approved by the Board at that time.

In addition to the above, the Executive Committee shall organize the working processes of the Board and recommend best practices for governance to the Board. More specifically, the Executive Committee shall:

1. Develop and recommend to the Board a statement of governance setting out the Board’s role;

2. Periodically review the Board’s bylaws and recommend amendments; 3. Provide advice to the Board on committee structure, appointments and meetings; 4. Develop an orientation and continuing education process for Visitors that includes training

on the Virginia Freedom of Information Act; 5. Create, monitor, oversee, and review compliance with a code of ethics for Visitors; and 6. Develop a set of qualifications and competencies for membership on the Board for approval

by the Board and recommendation to the Governor.

SECTION 3.2 STANDING COMMITTEES —The standing committees of the Board of Visitors shall consist of the Finance Committee, Buildings and Grounds Committee, Student Affairs and Athletics Committee, Educational Policy Committee, Advancement and Communications Committee, Audit and Compliance Committee, Committee on The University of Virginia’s College at Wise, and the Medical Center Operating Board. The number to be appointed to each standing committee shall be determined by

Formatted: Indent: First line: 0.19"

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OFFICERS OF THE BOARD

the Rector at the time of appointment. However, no committee shall consist of fewer than three members.

The standing committees shall be appointed by the Rector at the Annual Meeting of each year, and at

the time of appointment the Rector shall designate the chair of each committee. A vacancy on any committee shall be filled by the Rector for the unexpired term, and the Rector shall have the power to change the membership of any standing committee at any time. Each standing committee shall meet at the call of the chair, the Rector, the Vice Rector, or the President and shall consider such matters as may be referred to it by these officers or by members of the committee.

The Secretary shall prepare a docket for each committee meeting and shall attend the meeting. In addition to the duties of the standing committees as listed below, each committee shall consider

such other matters as may be referred to it by the Board, the Rector, the Vice Rector, the President, or the chair and shall make its report and recommendations as required to the Board, to the President, and, upon the request of the Rector, to the Executive Committee. No standing committee has power or authority to commit the Board to any policy or action unless specifically granted such power or authority by the Board. In such cases, a report of final action by any committee shall be made at the next regular meeting of the Board and, if confirmation is required, shall be confirmed and approved by the Board at that time.

On motion of any member, any grant to a committee of power or authority to commit the Board shall

be reviewed by the Board, at which time it may be modified or rescinded by majority vote of the members present without complying with the requirements for amending this Manual. SECTION 3.21 FINANCE COMMITTEE—The Finance Committee shall be responsible in all matters relating to the University’s financial affairs and business operations. It shall review and approve the annual budget and the setting of tuition rates, student fees, and other student charges for recommendation to the Board. On behalf of the Board, it shall approve the investment of endowment and other funds, the purchase of real and personal property, and the making of loans to faculty members, and it shall make progress reports to the Board on its actions.

The committee shall maintain liaison with the University of Virginia Investment Management Company,

a nonprofit, nonstock corporation organized under Virginia law to provide investment and investment management and related services to the University of Virginia, and shall monitor and review periodically the performance of the Company. SECTION 3.22 BUILDINGS AND GROUNDS COMMITTEE—The Buildings and Grounds Committee shall have responsibility in all matters relating to the physical plant and equipment. It shall exercise oversight over the care, maintenance, and security of the University’s buildings and grounds; the selection of architects and engineers and the construction and naming of new buildings; the care and preservation of all furnishings and equipment; and such other matters relating to the buildings and grounds of the University as may come before it. On behalf of the Board, it shall approve the location and design of new buildings and shall make progress reports to the Board on its actions. SECTION 3.23 STUDENT AFFAIRS AND ATHLETICS COMMITTEE—The Student Affairs and Athletics Committee shall be responsible in all matters relating to nonacademic student affairs and to

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athletics. It shall exercise oversight over student conduct, residential and social life, extracurricular activities, food services, health, and such other matters relating to student affairs as may be brought to its attention. The committee shall have oversight over athletic policy and programs, both intramural and intercollegiate. SECTION 3.24 EDUCATIONAL POLICY COMMITTEE—The Educational Policy Committee shall have responsibility in all matters relating to educational policies and programs, except for those matters subject to the oversight of the Medical Center Operating Board. The Educational Policy Committee shall exercise oversight over the proposal of new degrees and educational programs by the President, the conditions affecting the recruitment and retention of faculty members, the adequacy of instructional facilities, and such other matters relating to the educational policies and programs as may be brought before it by the President or Provost or referred to it by the Board. SECTION 3.25 AUDIT AND COMPLIANCE COMMITTEE—The Audit and Compliance Committee shall be responsible for all matters relating to financial accounting and reporting. The Audit and Compliance Committee shall have direct access to internal and external auditors to assess performance, the scope of audit activities, and the adequacy of the system of internal accounting controls. SECTION 3.26 ADVANCEMENT AND COMMUNICATIONS COMMITTEE— The Advancement and Communications Committee shall have responsibility in all matters pertaining to University development, alumni affairs, and public communications. This responsibility shall include the oversight of University capital campaigns and all other programs that promote private donations to and alumni support of the University. As part of this responsibility, the committee’s oversight will include the University-related foundations and their activities to raise funds on behalf of the University. SECTION 3.27 THE COMMITTEE ON THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE—The Committee on The University of Virginia’s College at Wise is charged with the oversight of the College and the advancement of its mission and with bringing its needs and concerns to the attention of the Board of Visitors. The committee will assist the Chancellor in carrying out the Chancellor’s duties and will further the goals of The University of Virginia’s College at Wise. SECTION 3.28 THE MEDICAL CENTER OPERATING BOARD— The Medical Center Operating Board shall be the governing board of the Medical Center and the Transitional Care Hospital for Joint Commission on Accreditation of Hospital Organization purposes, responsible to oversee and direct the operations of the Medical Center and the Transitional Care Hospital as delegated by the Board of Visitors.

The Rector shall serve as a voting member, and he shall appoint four other members of the Board of

Visitors, including the chair, to serve as voting members of the Medical Center Operating Board; one of these members shall be the chair of the Finance Committee and one of these members shall be a physician with administrative and clinical experience in an academic medical center. The Board of Visitors may appoint no more than six public non-voting members of the Medical Center Operating Board, to serve for initial terms not to exceed four years. The President of the University, the Executive Vice President and Provost of the University, the Executive Vice President and Chief Operating Officer of the University, the Vice President and Chief Executive Officer of the Medical Center, the Vice President and Dean of the School of Medicine, the Dean of the School of Nursing, and the President of the Clinical Staff of the Medical Center shall serve as non-voting advisory members. In addition to the six non-voting public

Formatted: CM8, Justified

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members, the Board of Visitors may appoint up to four additional public members on a temporary basis, for terms to begin no later than July 15, 2011 and end on December 31, 2012.

SECTION 3.3 SPECIAL COMMITTEES—Special committees may be constituted at any time by the Rector. The Rector shall determine the membership and the number of members to be appointed to special committees, which shall have a life of not to exceed one year unless renewed for a specified period by the Rector and the Board at the Annual Meeting.

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The Officers of the Board of Visitors shall consist of the Rector of the University of Virginia, the Vice Rector, the President of the University, the Chief Operating Officer of the University, the Provost of the University, the General Counsel of the University, and the Secretary to the Board of Visitors. SECTION 4.1 THE RECTOR AND VICE RECTOR OF THE UNIVERSITY —The Rector of the University is especially charged with the duty of maintaining that level of interest and activity among the members of the Board of Visitors as will best contribute to the determination of broad policies, wise planning for the future, intelligent and considerate observance of the rights of the faculty and the student body, including the care and preservation of the Honor System, and maintenance of the independence of the Board from outside influences harmful to the interests of the students and faculty of the University. The Vice Rector shall act in the Rector’s stead in fulfilling these obligations. SECTION 4.11 TERMS OF OFFICE AND ELECTION — The Rector and Vice Rector shall serve terms of two years, commencing 1 July of the first year and ending 30 June of the last year. At the conclusion of the Rector’s term of office, the Vice Rector shall succeed the Rector and serve for two years in that office.

At its regular meeting closest to 30 June every two years, the Board shall elect a Vice Rector from among

its members to succeed the Rector, as hereinabove provided. At the election meeting, the election shall be by majority vote of the members present following nominations, and the Secretary shall serve as the presiding officer until an election is accomplished unless the Board decides to appoint another presiding officer. The Secretary shall count the votes and announce the election of the Vice Rector. SECTION 4.12 POWERS AND DUTIES —The Rector shall be the presiding officer of the Board of Visitors at all of its meetings; in the Rector’s absence, the Vice Rector shall serve in that capacity. The Rector shall have the power, unless otherwise directed by the Board, to fix the order of business, appoint all standing and special committees (except the Executive Committee), and require the proper preservation of a record of the Board’s proceedings by the Secretary., and, notwithstanding anything contained herein that may be to the contrary, determine who may be present during closed sessions (other than the duly appointed and voting members of the Board) as will reasonably aid the Board’s consideration. Without diminishing the right of individual Visitors to publicly express their personal views, the Rector, unless otherwise determined by the Board or the Rector, shall act as spokesman for the Board of Visitors. The Rector and Vice Rector shall perform such additional duties as may be imposed on their offices by statute or by the direction of the Board.

Whenever the office of the President becomes vacant or a vacancy is impending, the Rector shall appoint

a Special Committee on the Nomination of a President from among the membership of the Board to seek and recommend to the Board a person to fill the vacancy.

This special committee shall be under the chairmanship of the Rector, and the committee shall consist of

no fewer than five members. SECTION 4.13 VACANCIES—Vacancies in the offices of Rector and Vice Rector shall be filled by the

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Board for the unexpired terms, following the procedure set forth in Section 4.11. If the cause of the vacancies is the expiration of the Rector’s or the Vice Rector’s terms as members of the Board, the vacancies shall be filled at the first meeting called for that purpose, at which meeting a quorum shall consist of eleven Visitors. SECTION 4.14 RECTOR PRO TEMPORE —In the absence of the Rector and Vice Rector from any meeting or in the event of their disability or of vacancy in office, the chair of the Finance Committee shall serve as Rector pro tempore. If the chair of the Finance Committee is absent or is unable to serve, the Board shall elect a Rector pro tempore for that meeting. SECTION 4.2 THE PRESIDENT OF THE UNIVERSITY—The President of the University shall be the chief executive officer of the University. The President shall be a member of the General Faculty and of the faculty of the College and of each of the schools of the University. The President also shall be the chief executive officer of The University of Virginia’s College at Wise. SECTION 4.21 ELECTION, APPOINTMENT, AND REMOVAL—The President shall be elected by the Board of Visitors. Appointment, removal, requested resignation, or amendment of the contract or terms of employment of the President may be accomplished only by vote of a majority (or, by statute, two-thirds in the case of removal) of the whole number of Visitors at a regular meeting, or special meeting called for this purpose. The President shall attend all meetings of the Board and shall have notice of and the privilege of attending all meetings of its committees. SECTION 4.22 POWERS AND DUTIES—As the chief executive officer of the University, the President shall have the following powers and duties:

1 The President shall have responsibility for the operation of the University in conformity with the purposes and policies determined by the Board;. The President shall strive to be transparent in all activities and shall operate entirely openly to the extent required by law;

2 The President shall act as adviser to the Board and shall have responsibility for recommending to it for consideration those policies and programs which in the opinion of the President will best promote the interests of the University;

3 The President shall recommend to the Board long-range educational goals and programs and the new degrees that may be best suited to attain those goals and programs;

4 The President shall have the power to establish and modify as he or she deems necessary the internal administrative structure of the University and shall appoint or provide for the appointment of all administrative officers except for the Vice Presidents and the Chancellor of The University of Virginia’s College at Wise, making a report of his or her actions thereon to the Board at the next regular meeting;

5 The President shall serve as President of the Faculty Senate of the University and of the Faculty Senate of The University of Virginia’s College at Wise;

6 The President shall have primary responsibility for the establishment and maintenance of proper relationships with the alumni;

7 The President shall at all times maintain cordial relationships with the students, guarding and protecting their best interests;

8 The President shall use particular efforts to preserve and foster the Honor System; 9 The President shall be responsible for the discipline of students with the power to impose

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appropriate penalties including expulsion; 10 The President shall submit to the Board each year an annual budget for the operation of the

University for the following fiscal year and shall prepare and submit to the Governor a biennial budget request as required by law or regulation;

11 The President shall promote the development of the endowment funds of the University and shall be authorized to accept any gift or grant subject to the approval of the Governor as required, making a report to the Board of such gifts or grants; and

12 The President shall perform such other duties as may be required by the Board. SECTION 4.3 POWERS AND DUTIES OF THE CHIEF OPERATING OFFICER—The Chief Operating Officer, who is elected by the Board of Visitors on the nomination of the President of the University, is an Officer of the Board. The Chief Operating Officer shall have supervision of the financial affairs of all colleges, schools, and divisions of the University and shall advise the Board of Visitors and the President, under whose immediate direction he or she shall be, on all financial matters affecting the University. Subject to the direction of the Board and the President, the Chief Operating Officer shall prescribe accounting procedures and practices for the disbursement of all funds, promulgate management policies and procedures for auxiliary services and operations, and institute budgetary policies and controls that will assure the faithful execution of the budgets. The Chief Operating Officer shall see that no expenditures are made without proper authorization. In addition, he or she shall advise the Board of Visitors and its committees on all matters relating to the duties of his or her office. The Chief Operating Officer shall perform such other duties as may be assigned to him or her by the Board or the President. SECTION 4.4 POWERS AND DUTIES OF THE PROVOST— The Provost, who is elected by the Board of Visitors on the nomination of the President, shall serve as the chief academic officer of the University reporting to the President, and shall have supervision over the academic affairs of the colleges, schools, and divisions of the University. The Provost shall advise the Board of Visitors and the President on all academic matters, including recommending strategic direction for the teaching and research missions of the University. The Provost shall serve as the chief personnel officer for academic faculty, and with the concurrence of the President, shall recommend to the Board of Visitors the election and initial compensation of salaried members of the faculty holding professorial rank or named chairs, promotions of faculty members to the ranks of associate professor, full professor, and professor emeritus, and the removal of faculty members for cause. The Provost shall appoint instructors at the first salary step and shall reappoint lecturers after an initial election by the Board. The Provost shall be authorized, after consultation with the dean, department head, and other affected administrative officers to suspend any faculty member at any time for proper cause. The Provost shall share administrative oversight of the University’s budget, working closely with the President and the Chief Operating Officer on the allocation of resources. The Provost shall advise the Board of Visitors and its committees on all matters relating to the duties of his or her office, and shall perform such other duties as may be assigned by the Board or the President. SECTION 4.5 SECRETARY TO THE BOARD OF VISI-TORSVISITORS—At the first regular meeting after 28 February 19862014 and every fourth year thereafter, upon the nomination of the President and the Rector in concurrence, the Board of Visitors shall elect a Secretary to serve until 28 February of the fourth year thereafter and until his or her successor is elected.

Any vacancy in the office shall be filled for the unexpired term in the same manner as election for the

full term.

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SECTION 4.51 POWERS AND DUTIES—The Secretary shall attend all meetings of the Board of Visitors and its committees and shall record the minutes of all proceedings. The Secretary shall prepare minutes of such meetings that, after approval by the Board, shall be recorded in the permanent records of the Board of Visitors. He or she shall give proper notice of all meetings of the Board, shall preserve as directed all documents or papers pertaining to the actions of the Board, and shall keep in safe custody the Seal of the University, which he or she shall affix to any instrument when authorized by the Board or persons designated by it, including the Rector, the Vice Rector, the President, or the Chief Operating Officer. In addition to the foregoing, the Secretary shall perform those functions and have those duties or responsibilities which are usual to the duties of a secretary and shall assist the Board of Visitors in the discharge of its official duties. The Secretary shall, under the immediate direction of the President, perform such other duties as may be assigned to him or her by the Board, the Vice Rector, the Rector, or the President. SECTION 4.6 GENERAL COUNSEL OF THE UNIVERSITY SECTION 4.61 ELECTION—By statute, a General Counsel of the University shall be appointed by the Attorney General of the Commonwealth of Virginia. Thereafter, on nomination of the President, and his designees provide legal counsel and representation to the Board of Visitors shall elect theand its delegated administrative and academic officers. His designees include General Counsel and Associate General Counsel to serve at its pleasure. . SECTION 4.62 POWERS AND DUTIES—As the Attorney General’s chief legal officerrepresentative of the University, the General Counsel shall adviseadvises the Board, and the President, under whose immediate direction he or she shall be, on all legal matters affectingand other administrative officers and employees of the University. The General Counsel shall perform such other duties as may be assignedand Associate General Counsel report to him or her by the the Attorney General on substantive legal matters and to the President for administrative purposes. The General Counsel or other representative of the Attorney General shall be given notice of, and be invited to attend all meetings of the Board or the President. and its committees.

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5

MISCELLANEOUS PROVISIONS

SECTION 5.1 APPEALS TO THE BOARD —The Board at its discretion shall consider such appeals as are provided for in the University regulations and procedures except that in no event shall the Board consider an appeal from a decision of the Honor Committee involving an honor offense. SECTION 5.2 RETIREMENT —The President, Chief Operating Officer, Provost, General Counsel, and Secretary shall relinquish their positions as Officers of the Board upon retirement or resignation from their administrative duties. SECTION 5.3 COMMUNICATIONS TO THE BOARD — All communications of an official nature directed to the Board of Visitors shall be channeled through the office of the President. All communications of an official nature from the Board of Visitors shall be similarly channeled, or copies thereof shall be furnished to the President. SECTION 5.4 MINUTES OF BOARD MEETINGS —The Minutes of the Annual, regular, and special meetings of the Board shall be open to inspection as required by law. and posted on the Board’s website. SECTION 5.41 CLERK OF THE BOARD —The President may appoint a Clerk of the Board to provide administrative and clerical support to the Secretary, the President, the Rector, and members of the Board in fulfilling their responsibilities as prescribed in this Manual. The Clerk shall serve under the direction and supervision of the Secretary and at the pleasure of the President. SECTION 5.5 EXECUTION OF INSTRUMENTS—The Rector, the Vice Rector, the President, the Chief Operating Officer, and other persons designated and authorized by the Board of Visitors shall execute, in the name and on behalf of The Rector and Visitors of the University of Virginia, any instrument that may require the name of the corporation to be signed thereto, and the Secretary to the Board shall have authority to affix the seal of the corporation to any such instrument and to deliver it to the party entitled to receive it. SECTION 5.6 ASSIGNMENT OF SECURITIES—The Rector, the Vice Rector, the President, the Chief Operating Officer, and other persons designated and authorized by the Board of Visitors shall have authority to sell, assign, and transfer any and all stocks, bonds, evidences of indebtedness or interest thereon, rights and options to acquire or sell the same, and all other securities, corporate or otherwise, standing in the name or belonging to the Rector and Visitors of the University of Virginia in any capacity. The same persons have authority to give the assent of the corporation to mergers, consolidations, agreements for a deposit of stock, or for reorganization of any corporation or corporations in which the Rector and Visitors of the University of Virginia as a corporation may have an interest. SECTION 5.7 THE MANUAL —The Manual of the Board of Visitors of the University of Virginia sets forth the Board’s powers and duties and those of its officers in order to clarify the manner in which the Board and such officers shall function. As the controlling statement of the Board’s procedure and practice, the Manual constitutes the bylaws of the corporation.

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SECTION 5.8 DISTRIBUTION OF THE MANUAL —A copy of this Manual and any amendments that may be made thereto shall be provided by the Secretary to each member of the Board and to each new member of the Board immediately following his or her appointment to the Board. At periodic intervals, on direction of the Rector, the Secretary shall cause the Manual to be reprinted, incorporating therein all amendments which have been adopted following the effective date of this Manual or its last reprinting. SECTION 5.9 AMENDMENTS TO THE MANUAL — This Manual may be amended at any regular meeting of the Board by a majority vote of all the members of the Board provided that the proposed amendment has been submitted to the Executive Committee and its views on the amendment have been submitted to the Board and that notice of the amendment was included in the regular notice of the meeting. SECTION 5.10 EFFECTIVE DATE OF THE MANUAL — The provisions of this Manual shall go into effect on 31 July 2004. As of their effective date, these provisions shall supersede all prior actions of the Board that are inconsistent with them.

The online version of the Manual contains all amendments through May 21, 2013.

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APPENDIXES

A

THOMAS JEFFERSON ON

HIGHER EDUCATION DOCUMENTS RELATIVE TO

THE FOUNDING OF THE UNIVERSITY OF VIRGINIA

1

INTRODUCTION John Cook Wyllie, Director of Libraries

Printed here are the basic documents relative to the founding of the University of Virginia. Thomas Jefferson’s hand is transparently clear in all of these, but a word on the text is in order.

The two statutes (one at the beginning printed in excerpt and the one at the end in full) are taken from

the annual volumes of the Acts of the Virginia General Assembly. The Rockfish Gap documents are a reprint of the only surviving copy now known of the Proceedings and Report of the Commissioners for the University of Virginia, a pamphlet separately printed in 1818 for the use of the members of the Virginia House of Delegates. This pamphlet is now for the first time completely reprinted, although portions of it have frequently been reproduced from other texts. Of the earlier printings, two before this

15

APPENDIX B

one have been made by or for the Board of Visitors, one during the Rectorship of Jefferson, one during the Rectorship of A. H. H. Stuart, son of the Archibald Stuart who sat on the Board of Commissioners with Jefferson and cast one of the two votes to locate the University in Staunton.

Jefferson’s own reprint of 1824 omitted, obviously by intention, the details of the contingent gifts to

the University which depended upon the site chosen. These details were by law required in the 1818 Report, but in 1824 a proper regard for the feelings of the underbidder in the non-auction, or a decent respect for the pride of a sister educational institution, may have influenced the Rector in this editorial excision.

Only indifferent proofreading on the part of the eighty-one-year-old Rector can, however, explain the

other deviations in the 1824 text. Of substantive changes, there were two instances of multiple word omission (three, if the printing of the final statute is included), and the earliest of these does at first glance look like an editorial honing away of unnecessary wordage: the original “Act appropriating part of the revenue of the Literary Fund” became, in 1824, “Act appropriating part of the Literary Fund.” Textually unimportant as this change might seem, its existence clarifies the lengthy omission some pages later of the last nine words in the expression “specification of languages to be taught by the Professor of modern languages.” This excision might be mistaken for a change in plan with respect to one of the professorships. Instead, considered in juxtaposition with the earlier excision, one may say with certainty that the compositor who set the type in 1824 had the bad habit of skipping from one line of a text to the next line when the same word occurred in both. In the first instance, he skipped from one “of” to another; in the second, from one “languages” to another.

This is the justification for not using as a copy text the last form that came under Jefferson’s editorial

supervision. The later miscellaneous changes (including the reduction of a portion of some posttabular comments to a lengthy footnote) are, in short, clearly the printer’s, not the author’s.

Ten printings of the Rockfish Gap documents have been located, only one of these done in the

present century. The earliest, the cleanest (“place” was substituted for “plan” on page 10 [page 45 of this printing] and three obvious typographical errors [here corrected] were made), and the most complete is reprinted here from a pamphlet of 30 pages printed in December 1818 by Thomas Ritchie, Printer for the Commonwealth, in 500 copies by order of the House of Delegates. The late Dr. E. G. Swem (Bibliography of Virginia, 1917, No. 9014) knew this had been printed but was unable to locate a copy.

This was closely followed by a pamphlet of 14 pages printed in 1818 by John Warrock, Printer to the

Senate, in 150 copies by order of the Senate. Dr. Swem (No. 9041) also knew of this, but again was unable to locate a copy. It included the Report in extenso but omitted the Proceedings of the Commissioners, the letter of transmittal, and the supplementary statement regarding gifts.

The Proceedings and Report (without their ancillary documents) were first reprinted at other than

public expense by Thomas Ritchie in his Richmond Enquirer (XV, No. 63) for 10 December 1818, with the comment that the Report “is, we believe, with a few variations, from the ever luminous pen of Thomas Jefferson.” Presumably from this source, it was copied in the Philadelphia Analectic Magazine, XIII (February 1819), 103–16, where the editor commented that “the report is said to be from the pen of Mr. Jefferson.”

Next followed the two journal printings, of the House (Swem No. 9011, which omitted the 16


supplementary material referred to in Jefferson’s letter of transmittal) and of the Senate (Swem No. 9039, which included only the Report).

Jefferson’s own reprint, a pamphlet of 29 pages printed in Charlottesville in 1824 by C. P. McKennie,

was sold by the University Proctor for 121⁄cents (the 2 coin was known as the “one bit” piece before it

disappeared from our coinage, leaving its name only with its twin) and was so advertised on the Explanations, of the Ground Plan of the University which accompanied the Maverick Plan.

N. F. Cabell (great-grandson of the Joseph C. Cabell who received the original draft as well as one of

the manuscript copies sent to the Assembly in 1818) printed the Report without its ancillary documents as Appendix I to his Early History of the University of Virginia (Richmond, 1856), pp. 432–47; and Roy J. Honeywell reprinted this as Appendix J in The Educational Work of Thomas Jefferson (Cambridge, 1931), pp. 248–60, with the annotation that it was “written by Jefferson before the meeting and was adopted by the commissioners with only minor changes.”

Only one further reprinting, in Richmond in 1879, has been located. The Report appeared then on

pages 7–17 of the Annual Report of the Board of Visitors of the University of Virginia for the fiscal year ending May 31, 1879.

Jefferson’s report is often cited (sometimes as the “Rockfish Report,” sometimes as the “Rockfish Gap

Report”), but although it is quite significant in the history of pedagogics, it has never appeared among Jefferson’s collected writings, and even its authorship has in part been thrown into question by the quotation out of context of the comment in Jefferson’s letter of 20 November 1818, to Joseph C. Cabell, that the Report was “written in great haste, and by several hands, dividing the work.”

When Jefferson wrote these words, he was referring to the handwritten copies of the Report produced

for the House and Senate in a year of grace before Xerox. These copies, one of which may still be seen in the Virginia State Archives in Richmond, were written out by pen in great haste, with several people dividing the parts to be copied.

The Report itself bears the authentic marks of Jefferson’s single authorship, not the evidence of haste

and collaboration. It is a careful statement resulting from a lifetime’s contemplation of a subject of central importance to the author. For this reason the present printing has been entitled “Thomas Jefferson on Higher Education.” If there is a lingering doubt in anyone’s mind as to the accuracy of this title on the grounds of authorship, it can be allayed by an examination of the working draft, entirely in Jefferson’s hand, of the chief documents involved. This working draft is now in the Jefferson Papers of the University of Virginia Library.

17

APPENDIX B

2

THE STATUTE OF 1818

CHAPTER XI.—An act appropriating part of the revenue of the Literary Fund, and for other purposes [Passed February 21st, 1818.]

1. Be it enacted by the General Assembly . . . [The first seven sections concern matters other than the

University.] 8. Be it further enacted, That there shall be established, in some convenient and proper part of the State,

a university to be called, “The University of Virginia,”— wherein all the branches of useful science shall be taught. In order to aid the Legislature in ascertaining the permanent scite of the said University, and in organizing it, there shall be appointed without delay by the Executive of this Commonwealth twenty-four discreet and intelligent persons, who shall constitute a board to be called “The board of commissioners for the University.” One member of the said board, shall be appointed from each of the Senatorial districts, as they were arranged, by an act of the last session of the Legislature. If any person so appointed shall fail or refuse to act, his place shall be supplied from the same district, by appointment of the president and directors of the literary fund. The said board shall meet on the first day of August next at the tavern in Rockfish gap on the Blue Ridge for the purpose of performing the duties hereby assigned to them. At least three-fourths of the whole number shall be necessary to form a board for the transaction of business; but any smaller number may adjourn from day to day, until a quorum shall attend. The said board, when assembled, shall have power to adjourn from time to time, and from place to place, until their duties shall have been performed. It shall be their duty to enquire and report to the Legislature at their next session:

First—A proper scite for the University; Secondly—A plan for the buildings thereof; Thirdly—The branches of learning, which should be

taught therein; Fourthly—The number and description of professorships; and Fifthly—Such general provisions as might properly

be enacted by the Legislature, for the better or- ganising and governing the University.

The said board are also authorised and required to receive any voluntary contributions, whether conditional or absolute, whether in land, money or other property, which may be offered, through them, to the president and directors of the literary fund, for the benefit of the University; and to report the same to the Legislature, at their next session. The members of the said board of commissioners shall be allowed for their services the same pay and traveling expences, as are allowed to members of the General Assembly, to be ascertained and certified by the board, and paid out of the literary fund.

9. Be it further enacted, That, as soon as the scite of the said University shall be ascertained by law, there

shall be appropriated, out of the revenue of the literary fund, the sum of fifteen thousand dollars per annum, for the purpose of defraying the expences of procuring the land and erecting the buildings, and for the permanent endowment of the said University; Provided, however, that the appropriation, hereby made to the University, shall in no manner impair or diminish the appropriations hereinbefore made to the

18


education of the poor in the several counties and corporations. 10. Be it further enacted, That the University aforesaid shall be under the government of thirteen visitors

to be appointed by the president and directors of the literary fund, and to hold their offices for seven years, and until their successors shall be appointed, unless sooner displaced by the said president and directors. All vacancies in the office of visitor, by death, resignation, or removal out of the Commonwealth, or failure to act, for the space of one year, shall be supplied by the said president and directors.

11. The said visitors shall appoint one of their own body to be rector, and they shall be a body

corporate, under the name and style of “The rector and visitors of the University of Virginia;” and, as such, they may have and use a common seal, receive and hold property for the benefit of the University, sue and be sued, implead and be impleaded. They shall have power to appoint a clerk for their own body, and allow him a reasonable compensation for his services; to appoint and remove the professors and teachers and all other officers of the University; to regulate their salaries and fees; and to make all such by-laws, rules and regulations, as may be necessary to the good government of the University, and not con-trary to the laws of the land. But the said rector and visitors shall at all times conform to such laws, as the Legislature may from time to time think proper to enact for their government; and the said University shall in all things, at all times, be subject to the controul of the Legislature.

12. This act shall commence and be in force from and after the first day of March next.

19

APPENDIX B

3

PROCEEDINGS AND REPORT OF THE COMMISSIONERS FOR

THE UNIVERSITY OF VIRGINIA. PRESENTED DECEMBER 8, 1818.

Read and referred to a Select Committee

[Richmond: Printed by Thomas Ritchie,

Printer for the Commonwealth. 1818.]

MONTICELLO, Nov. 20, 1818. SIR, The Commissioners appointed under the Act of the last General Assembly, for appropriating a part of the revenue of the Literary Fund, and for other purposes, met according to law, at the Rockfish Gap, on the 1st day of August last, and having continued their session by adjournments until the 4th day of that month, agreed to a report, which being signed in duplicates, individually and unanimously, by all the members who attended, they instructed me to transmit to the Speakers of both Houses of the Legislature. In obedience to that instruction, I now inclose one of the said original reports, with a copy of their journal, and of the documents exhibited and left in their possession.

Some of the outstanding subscription papers therein mentioned, have been returned with additional

subscriptions to the amount of 2650 dollars, and an additional purchase has been made of 483⁄4 acres of

land adjoining the site of the Central College, necessary to the probable extent of buildings, should that be adopted, as proposed by the report, for the site of the University; which circumstances having taken place since the date of the report, I have deemed it a duty to mention as supplementary to it.

I have the honor to be with sentiments of the highest respect and consideration,

Sir, your most obedient and most humble servant,

TH: JEFFERSON. The Honorable the Speaker

of the House of Delegates of Virginia.

PROCEEDINGS OF THE BOARD The Commissioners for the “University of Virginia” having been required by law to meet at the tavern

in Rockfish Gap, on the Blue Ridge, on the first day of August, 1818, the following members attended, (to wit;) Creed Taylor, Peter Randolph, William Brockenbrough, Archibald Rutherford, Archibald Stuart, James Breckenridge, Henry E. Watkins, James Madison, Armistead T. Mason, Hugh Holmes, Philip C. Pendleton, Spencer Roane, John McTaylor, John G. Jackson, Thomas Wilson, Philip Slaughter, William H. Cabell, Nathaniel H. Claiborne, Thomas Jefferson, William A. G. Dade, and William Jones, and their appointments being duly proven, they formed a Board, and proceeded to the discharge of the duties

20


prescribed to them by the Act of the Legislature, entitled, “An Act appropriating a part of the revenue of the Literary Fund, and for other purposes.”

Thomas Jefferson, Esq. was unanimously elected President of the Board, and Thomas W. Maury ap-

pointed Secretary, who appeared and took his seat as such. The Board proceeded to the first duty enjoined on them, (to wit;) to enquire and report a proper site

for the University, whereupon the towns of Lexington and Staunton, and the Central College, were severally proposed; and after some time spent in debate thereon, on motion of Mr. Rutherford; it was

Resolved, That the consideration be postponed for the present. On motion by Mr. Dade, (who stated it to be his object to ascertain the sense of the Board on the

question, whether the Board would visit the several places proposed for the site of the University, at the same moment that he himself was opposed to the adoption of such resolution,) that when this Board adjourns, it shall be to Lexington, in the County of Rockbridge; it was unanimously decided in the negative.

On motion, Resolved, That a Select Committee of six members be appointed by ballot to consider and

report on all the duties assigned to this Board, except that relating to the site of the University, and a committee was appointed of Mr. Jefferson, Mr. Madison, Mr. Roane, Mr. Stuart, Mr. Dade, and Mr. Breckenridge.

On a motion by Mr. Stuart, that when the Board adjourns, it shall be to the town of Staunton, in the County of Augusta, it was decided in the negative.

On motion, Resolved, That when this Board adjourns, it will adjourn till 9 o’clock, on Monday morning. And the Board was accordingly adjourned till 9 o’clock on Monday morning.

MONDAY, August 3d, 1818.

The Board having met according to adjournment, On the motion of Mr. Roane, Resolved, That the Board will now proceed to declare its opinion which of

the three places proposed, to wit; Lexington, Staunton, or the Central College, is most convenient and proper for the site of the University of Virginia, and on a call of the votes nominally, Mr. Breckenridge, Mr. Pendleton, and Mr. J. McTaylor, voted for Lexington; Mr. Stuart and Mr. Wilson for Staunton; and Mr. Creed Taylor, Mr. Randolph, Mr. Brockenbrough, Mr. Rutherford, Mr. Watkins, Mr. Madison, Mr. Mason, Mr. Holmes, Mr. Roane, Mr. Jackson, Mr. Slaughter, Mr. Cabell, Mr. Claiborne, Mr. Jefferson, Mr. Dade, and Mr. Jones voted for the Central College. So it was resolved that the Central College is a convenient and proper place for the site of the University of Virginia.

Resolved, That this declaration of the opinion of the Board be referred to the committee appointed on

Saturday, with instructions that they include it with the other matters referred to them, and report thereon; and that they retire forthwith to prepare and make their report.

21

APPENDIX B

Whereupon the Committee withdrew, and after some time returned to their seats, and delivered in their report, which having been considered, and sundry amendments made thereto, was, upon the question put, passed by the unanimous vote of the Board.

Resolved, That the Secretary prepare without delay, two fair copies of the said report, to be signed each

by every member present, and, to be forwarded by the President, one of them to the Speaker of the Senate, and the other to the Speaker of the House of Delegates.

And the Board adjourned to to-morrow morning, 9 o’clock.

TUESDAY, August 4th, 1818.

The Board met according to adjournment. The Secretary according to order, produced two fair

copies of the report of the Committee, as amended and agreed to by the Board, which were then signed by the attending members.

On motion of Mr. Roane, seconded by Mr. Breckenridge, Resolved unanimously, “That the thanks of this

Board be given to Thomas Jefferson, Esq. for the great ability, impartiality, and dignity, with which he has presided over its deliberations.”

The question being then put, Resolved, That this Board is now dissolved. (Signed) TH: JEFFERSON. Attest, TH: W. MAURY, Secretary.

REPORT. The Commissioners for the University of Virginia, having met, as by law required, at the Tavern in

Rockfish Gap on the Blue Ridge, on the first day of August of this present year 1818, and having formed a board, proceeded on that day to the discharge of the duties assigned to them by the Act of the Legislature intituled an “Act appropriating part of the revenue of the Literary Fund, and for other purposes,” and having continued their proceedings by adjournment from day to day, to Tuesday the fourth day of August, have agreed to a report on the several matters with which they were charged, which report they now respectfully address and submit to the Legislature of the State.

The first duty enjoined on them was to enquire and report a site in some convenient and proper part

of the State, for an University, to be called the “University of Virginia.” In this enquiry they supposed that the governing considerations should be the healthiness of the site,

the fertility of the neighbouring country, and its centrality to the white population of the whole State: for, although the Act authorised and required them to receive any voluntary contributions, whether

22


conditional or absolute, which might be offered through them to the President and Directors of the Literary Fund, for the benefit of the University, yet they did not consider this as establishing an auction, or as pledging the location to the highest bidder.

Three places were proposed; to wit, Lexington in the County of Rockbridge, Staunton in the County of

Augusta, and the Central College, in the County of Albemarle: each of these was unexceptionable as to healthiness and fertility. It was the degree of centrality to the white population of the State which alone then constituted the important point of comparison between these places: and the Board, after full enquiry, and impartial and mature consideration, are of opinion that the central point of the white population of the State is nearer to the Central College, than to either Lexington, or Staunton, by great and important differences; and all other circumstances of the place in general being favorable to it as a position for an University, they do report the Central College in Albemarle, to be a convenient and proper part of the State, for the University of Virginia.

2. The Board having thus agreed on a proper site for the University to be reported to the Legislature,

proceeded to the second of the duties assigned to them, that of proposing a plan for its buildings; and they are of opinion that it should consist of distinct houses or pavilions, arranged at proper distances on each side of a lawn of a proper breadth, and of indefinite extent in one direction at least, in each of which should be a lecturing room, with from two to four apartments for the accommodation of a Professor and his family; that these pavilions should be united by a range of Dormitories, sufficient each for the accommodation of two Students only, this provision being deemed advantageous to morals, to order, and to uninterrupted study; and that a passage of some kind under cover from the weather should give a communication along the whole range. It is supposed that such pavilions on an average of the larger and smaller, will cost each about 5,000 dollars, each dormitory about 350 dollars, and hotels of a single room for a refectory, and two rooms for the tenant necessary for dieting the Students will cost about 3,500 dol-lars each. The number of these pavilions will depend on the number of Professors, and that of the Dormitories and hotels on the number of Students to be lodged and dieted. The advantages of this place are, greater security against fire and infection; tranquility and comfort to the Professors, and their families thus insulated; retirement to the Students, and the admission of enlargement to any degree to which the institution may extend in future times. It is supposed probable that a building of somewhat more size in the middle of the grounds may be called for in time, in which may be rooms for religious worship under such impartial regulations as the visitors shall prescribe, for public examinations, for a library, for the schools of music, drawing, and other associated purposes.

3.4. In proceeding to the third and fourth duties prescribed by the Legislature of reporting “the

branches of learning, which should be taught in the University, and the number and description of the professorships they will require,” the Commissioners were first to consider at what point it was understood that University education should commence? Certainly not with the Alphabet, for reasons of expediency and impracticability, as well as from the obvious sense of the Legislature, who, in the same Act make other provision for the primary instruction of poor children, expecting doubtless that, in other cases, it would be provided by the parent, or become perhaps a subject of future, and further attention for the Legislature. The objects of this primary education determine its character and limits.—These objects would be,

To give to every citizen the information he needs for the transaction of his own business.

23

APPENDIX B

To enable him to calculate for himself, and to express and preserve his ideas, his contracts and accounts in writing.

To improve by reading, his morals and faculties. To understand his duties to his neighbours, and country, and to discharge with competence the func-

tions confided to him by either. To know his rights; to exercise with order and justice those he retains; to choose with discretion the

fiduciaries of those he delegates; and to notice their conduct with diligence, with candor and judgment. And, in general, to observe with intelligence and faithfulness all the social relations under which he

shall be placed. To instruct the mass of our citizens in these their rights, interests and duties, as men and citizens, being

then the objects of education in the primary schools, whether private or public, in them should be taught reading, writing and numerical arithmetic, the elements of mensuration (useful in so many callings,) and the outlines of geography and history; and this brings us to the point at which are to commence the higher branches of education, of which the Legislature require the development: those, for example, which are to form the Statesmen, Legislators and Judges, on whom public prosperity, and individual happiness are so much to depend:

To expound the principles and structure of government, the laws which regulate the intercourse of

nations, those formed municipally for our own government, and a sound spirit of Legislation, which banishing all arbitrary and unnecessary restraint on individual action shall leave us free to do whatever does not violate the equal rights of another:

To harmonize and promote the interests of agriculture, manufactures and commerce, and by well

informed views of political economy to give a free scope to the public industry: To develope the reasoning faculties of our youth, enlarge their minds, cultivate their morals, and instil

into them the precepts of virtue and order: To enlighten them with mathematical and physical sciences, which advance the arts and administer to

the health, the subsistence and comforts of human life: And generally to form them to habits of reflection, and correct action, rendering them examples of

virtue to others, and of happiness within themselves. These are the objects of that higher grade of education, the benefits and blessings of which the

Legislature now propose to provide for the good and ornament of their country, the gratification and happiness of their fellow citizens, of the parent especially and his progeny on which all his affections are concentrated.

In entering on this field, the Commissioners are aware that they have to encounter much difference of

opinion as to the extent, which it is expedient that this institution should occupy. Some good men, and 24


even of respectable information, consider the learned sciences as useless acquirements; some think that they do not better the condition of man; and others, that education, like private and individual concerns, should be left to private and individual effort; not reflecting that an establishment, embracing all the sciences which may be useful and even necessary in the various vocations of life, with the buildings and apparatus belonging to each, are far beyond the reach of individual means, and must either derive existence from public patronage or not exist at all. This would leave us then without those callings which depend on education, or send us to other countries, to seek the instruction they require. But the Com-missioners are happy in considering the statute under which they are assembled as proof, that the Legislature is far from the abandonment of objects so interesting; they are sensible that the advantages of well directed education, moral, political and economical, are truly above all estimate. Education generates habits of application, of order and the love of virtue; and controuls, by the force of habit, any innate obliquities in our moral organization. We should be far too from the discouraging persuasion, that man is fixed, by the law of his nature, at a given point; that his improvement is a chimaera, and the hope delusive of rendering ourselves wiser, happier or better than our forefathers were.—As well might it be urged, that the wild and uncultivated tree, hitherto yielding sour and bitter fruit only, can never be made to yield better: Yet we know that the grafting art implants a new tree on the savage stock, producing what is most estimable both in kind and degree. Education, in like manner, engrafts a new man on the native stock, and improves what in his nature was vicious and perverse, into qualities of virtue and social worth; and it cannot be, but that each generation, succeeding to the knowledge acquired by all those who preceded it, adding to it their own acquisitions and discoveries, and handing the mass down for successive and constant accumulation, must advance the knowledge and well-being of mankind, not infinitely, as some have said, but indefinitely, and to a term which no one can fix or foresee. Indeed, we need look back only half a century, to times which many now living remember well, and see the wonderful advances in the sciences and arts which have been made within that period. Some of these have rendered the elements themselves subservient to the purposes of man, have harnessed them to the yoke of his labours, and effected the great blessings of moderating his own, of accomplishing what was beyond his feeble force, and of extending the comforts of life to a much enlarged circle, to those who had before known its necessaries only.—That these are not the vain dreams of sanguine hope, we have before our eyes real and living examples. What, but education, has advanced us beyond the condition of our indigenous neighbours? and what chains them to their present state of barbarism and wretchedness, but a bigotted veneration for the supposed superlative wisdom of their fathers, and the perposterous idea that they are to look backward for better things and not forward, longing, as it should seem, to return to the days of eating acorns and roots, rather than indulge in the degeneracies of civilization? And how much more encouraging to the achievements of science and improvement, is this, than the desponding view that the condition of man cannot be ameliorated, that what has been, must ever be, and that to secure ourselves where we are, we must tread, with awful reverence, in the footsteps of our fathers. This doctrine is the genuine fruit of the alliance between church and state, the tenants of which, finding themselves but too well in their present position, oppose all advances which might unmask their usurpations, and monopolies of honours, wealth and power, and fear every change, as endangering the comforts they now hold. Nor must we omit to mention, among the benefits of education, the incalculable advantage of training up able councillors to administer the affairs of our country in all its departments, Legislative, Executive and Judi-ciary, and to bear their proper share in the councils of our National Government; nothing more than education, advancing the prosperity, the power and the happiness of a nation.

Encouraged therefore by the sentiments of the Legislature, manifested in this statute, we present the

25

APPENDIX B

following tabular statement of the branches of learning which we think should be taught in the University, forming them into groupes, each of which are within the powers of a single professor:

I. Languages Ancient, Latin, Greek, Hebrew.

II. Languages Modern. French, Spanish, Italian, German, Anglo-Saxon.

III. Mathematics Pure. Algebra, Fluxions, Geometry, Elementary,

“ Transcendental, Architecture, Military. “ Naval.

IV. Physico-Mathematics. Mechanics,

Statics, Dynamics, Pneumatics, Acoustics, Optics, Astronomy, Geography.

V. Physics or Natural Philosophy. Chemistry. Mineralogy.

VI. Botany, Zoology.

VII. Anatomy, Medicine.

VIII. Government, Political Economy, Law of Nature and Nations, History, (being interwoven

with Politics and Law.) IX.

Law Municipal. X.

26


Ideology, General Grammar, Ethics, Rhetoric, Belles Lettres and the Fine Arts.

Some of the terms used in this table, being subject to a difference of acceptation, it is proper to define the meaning and comprehension intended to be given them here:

Geometry Elementary, is that of straight lines and of the circle. Transcendental, is that of all other curves; it includes of course Projectiles, a leading branch of the

military art. Military Architecture, includes fortification, another branch of that art. Statics, respect matter generally, in a state of rest, and include Hydrostatics, or the laws of fluids

particularly, at rest or in equilibrio. Dynamics, used as a general term, include Dynamics Proper, or the laws of solids in motion, and

Hydrodynamics, or Hydraulics, those of fluids in motion. Pneumatics, teach the theory of air, its weight, motion, condensation, rarefaction, &c. Acoustics, or Phonics, the theory of sound. Optics, the laws of light and vision. Physics, or Physiology, in a general sense, mean the doctrine of the physical objects of our senses. Chemistry, is meant, with its other usual branches, to comprehend the theory of agriculture. Mineralogy, in addition to its peculiar subjects, is here understood to embrace what is real in Geology. Ideology, is the doctrine of thought. General Grammar, explains the construction of language. Some articles in this distribution of sciences will need observation. A Professor is proposed for ancient languages, the Latin, Greek and Hebrew particularly, but these lan-

guages being the foundation common to all the sciences, it is difficult to foresee what may be the extent of this school—at the same time no greater obstruction to industrious study could be proposed than the presence, the intrusions, and the noisy turbulence of a multitude of small boys; and if they are to be placed here for the rudiments of the languages, they may be so numerous, that its character and value as an University, will be merged in those of a grammar school. It is therefore greatly to be wished, that preliminary schools, either on private or public establishment, could be distributed in districts through the State, as preparatory to the entrance of students into the University. The tender age at which this part of education commences, generally about the tenth year, would weigh heavily with parents in sending their sons to a school so distant as the central establishment would be from most of them. Districts of such extent as that every parent should be within a day’s journey of his son at school, would be desirable in cases of sickness, and convenient for supplying their ordinary wants, and might be made to lessen sensibly the expense of this part of their education. And where a sparse population would not, within such a compass, furnish subjects sufficient to maintain a school, a competent enlargement of district must, of necessity, there be submitted to. At these district schools or colleges, boys should be rendered able to read the easier authors, Latin and Greek. This would be useful and sufficient for many not intended for an university education. At these too might be taught English grammar, the higher branches of numerical arithmetic, the geometry of straight lines and of the circle, the elements of navigation, and geography to a

27

APPENDIX B

sufficient degree, and thus afford to greater numbers the means of being qualified for the various vocations of life, needing more instruction than merely menial or praedial labor; and the same advantages to youths whose education may have been neglected until too late to lay a foundation in the learned languages. These institutions, intermediate between the Primary Schools and University, might then be the passage of entrance for youths into the University, where their classical learning might be critically compleated, by a study of the authors of highest degree. And it is at this stage only that they should be received at the University.—Giving then a portion of their time to a finished knowledge of the Latin and Greek, the rest might be appropriated to the modern languages, or to the commencement of the course of science, for which they should be destined. This would generally be about the 15th year of their age, when they might go with more safety and contentment to that distance from their parents. Until this preparatory provision shall be made, either the University will be overwhelmed with the grammar school, or a separate establishment under one or more Ushers for its lower classes, will be advisable, at a mile or two distance from the general one; where too may be exercised the stricter government necessary for young boys, but unsuitable for youths arrived at years of discretion.

The considerations which have governed the specification of languages to be taught by the Professor

of modern languages, were, that the French is the language of general intercourse among nations, and as a depository of human science, is unsurpassed by any other language, living or dead: that the Spanish is highly interesting to us, as the language spoken by so great a portion of the inhabitants of our continents, with whom we shall probably have great intercourse ere long; and is that also in which is written the greater part of the early history of America: The Italian abounds with works of very superior order, valuable for their matter, and still more distinguished as models of the finest taste in style and composition: and the German now stands in a line with that of the most learned nations in richness of erudition, and advance in the sciences. It is too of common descent with the language of our own country, a branch of the same original Gothic stock, and furnishes valuable illustrations for us. But in this point of view, the Anglo-Saxon is of peculiar value. We have placed it among the modern languages, because it is in fact that which we speak, in the earliest form in which we have knowledge of it. It has been undergoing, with time, those gradual changes which all languages, ancient and modern, have experienced; and even now, needs only to be printed in the modern character and orthography, to be intelligible, in a considerable degree, to an English reader. It has this value too above the Greek and Latin, that while it gives the radix of the mass of our language, they explain its innovations only. Obvious proofs of this have been presented to the modern reader, in the disquisitions of Horne Tooke; and Fortescue Aland has well explained the great instruction which may be derived from it towards a full understanding of our ancient common law, on which as a stock, our whole system of law is engrafted. It will form the first link in the chain of an historical review of our language through all its successive changes to the present day; will constitute the foundation of that critical instruction in it, which ought to be found in a Seminary of general learning; and thus reward amply the few weeks of attention which would alone be requisite for its attainment. A language already fraught with all the eminent science of our parent country, the future vehicle of whatever we may ourselves atchieve, and destined to occupy so much space on the globe, claims distinguished attention in American education.

Medicine, where fully taught, is usually subdivided into several professorships; but this cannot well be

without the accessory of an hospital, where the Student can have the benefit of attending clinical lectures, and of assisting at operations of surgery. With this accessory, the seat of our University is not yet prepared, either by its population, or by the numbers of poor, who would leave their own houses, and

28


accept of the charities of an hospital. For the present therefore, we propose but a single Professor for both Medicine and Anatomy. By him the elements of medical science may be taught, with a history and explanations of all its successive theories from Hippocrates to the present day: and anatomy may be fully treated. Vegetable pharmacy will make a part of the botanical course, and mineral and chemical pharmacy, of those of mineralogy and chemistry.

This degree of medical information is such as the mass of scientific Students would wish to possess, as

enabling them, in their course through life, to estimate with satisfaction the extent and limits of the aid to human life and health, which they may understandingly expect from that art, and it constitutes such a foundation for those intended for the profession, that the finishing course of practice at the bed-sides of the sick, and at the operations of surgery in a hospital, can neither be long nor expensive. To seek this finishing elsewhere, must therefore be submitted to for a while. In conformity with the principles of our constitution, which places all sects of religion on an equal footing, with the jealousies of the different sects in guarding that equality from encroachment and surprise, and with the sentiments of the Legislature in favor of freedom of religion manifested on former occasions, we have proposed no Professor of Divinity; and the rather, as the proofs of the being of a God, the creator, preserver, and supreme ruler of the universe, the author of all the relations of morality, and of the laws and obligations these infer, will be within the province of the professor of ethics, to which adding the developments of these moral obligations, of those in which all sects agree, with a knowledge of the languages, Hebrew, Greek and Latin, a basis will be formed common to all sects. Proceeding thus far without offence to the constitution, we have thought it proper at this point, to leave every sect to provide as they think fittest, the means of further instruction in their own peculiar tenets.

We are further of opinion that, after declaring by law that certain sciences shall be taught in the

University, fixing the number of professors they require, which we think should at present be ten, limiting (except as to the Professors who shall be first engaged in each branch,) a maximum for their salaries, (which should be a certain but moderate subsistence, to be made up by liberal tuition fees, as an excitement to assiduity,) it will be best to leave to the discretion of the visitors, the grouping of these sciences together, according to the accidental qualifications of the Professors, and the introduction also of other branches of science, when enabled by private donations or by public provision, and called for by the increase of population, or other change of circumstances; to establish beginnings, in short, to be developed by time, as those who come after us shall find expedient. They will be more advanced than we are, in science and in useful arts, and will know best what will suit the circumstances of their day.

We have proposed no formal provision for the gymnastics of the school, although a proper object of

attention for every institution of youth. These exercises with ancient nations, constituted the principal part of the education of their youth. Their arms and mode of warfare rendered them severe in the extreme. Ours, on the same correct principle, should be adapted to our arms and warfare; and the manual exercise, military manoeuvres, and tactics generally, should be the frequent exercises of the students, in their hours of recreation. It is at that age of aptness, docility and emulation of the practices of manhood, that such things are soonest learnt, and longest remembered. The use of tools too, in the manual arts, is worthy of encouragement, by facilitating to such as choose it, an admission into the neighbouring work-shops.—To these should be added the arts which embellish life, dancing, musick, and drawing; the last more especially, as an important part of military education. These innocent arts furnish amusement and happiness to those who, having time on their hands, might less inoffensively employ it;—needing at the same time, no regular incorporation with the institution, they may be left to accessory teachers, who will be paid by the indi-

29

APPENDIX B

viduals employing them; the University only providing proper apartments for their exercise. The 5th duty prescribed to the commissioners is, to propose such general provisions as may be

properly enacted by the Legislature, for the better organizing and governing the University. In the education of youth, provision is to be made for: 1, tuition—2, diet—3, lodging—4, government

and 5, honorary excitements. The 1st of these constitutes the proper functions of the professors. 2. The dieting of the students should be left to private boardinghouses of their own choice, and at their own expense; to be regulated by the Visitors from time to time, the house only being provided by the University within its own precincts, and thereby of course, subjected to the general regimen, moral or sumptuary, which they shall prescribe. 3. They should be lodged in dormitories, making a part of the general system of buildings. 4. The best mode of government for youth, in large collections, is certainly a desideratum not yet attained with us. It may well be questioned whether fear, after a certain age, is the motive to which we should have ordinary recourse. The human character is susceptible of other incitements to correct conduct, more worthy of employ, and of better effect. Pride of character, laudable ambition and moral dispositions are innate correctives of the indiscretions of that lively age; and when strengthened by habitual appeal and exercise, have a happier effect on future character, than the degrading motive of fear. Hardening them to disgrace, to corporal punishments, and servile humiliations, cannot be the best process for producing erect character. The affectionate deportment between father and son, offers, in truth, the best example for that of tutor and pupil; and the experience and practice of * other countries in this respect, may be worthy of enquiry and consideration with us. It will be then for the wisdom and discretion of the Visitors to devise and perfect a proper system of government, which, if it be founded in reason and comity, will be more likely to nourish, in the minds of our youth, the combined spirit of order and self respect, so congenial with our political institutions, and so important to be woven into the American character. 5. What qualifications shall be required to entitle to entrance into the University? the arrangement of the days and hours of lecturing for the different schools, so as to facilitate to the students the circle of attendance on them; the establishment of periodical and public examinations; the premiums to be given for distinguished merit; whether honorary degrees shall be conferred? and by what appellations? whether the title to these shall depend on the time the candidate has been at the University, or, where nature has given a greater share of understanding, attention and application, whether he shall not be allowed the advantages resulting from these endowments; with other minor items of government, we are of opinion, should be entrusted to the Visitors; and the statute under which we act, having provided for the appointment of these, we think they should moreover be charged with

The erection, preservation and repair of the buildings, the care of the grounds and appurtenances, and of the interests of the University generally;

That they should have power to appoint a Bursar, employ a Proctor, and all other necessary agents;

To appoint and remove professors, two-thirds of the whole number of Visitors voting for the removal;

To prescribe their duties and the course of education, in conformity with the law; To establish rules for the government and discipline of the students, not contrary to the laws of the

land; To regulate the tuition fees and the rent of the dormitories they occupy; To prescribe and control the duties and proceedings of all officers, servants, and others, with respect

to the buildings, lands, appurtenances, and other property and interests of the University;

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To draw from the Literary Fund such monies as are by law charged on it for this institution; And in general to direct and do all matters and things which, not being inconsistent with the laws of

the land, to them shall seem most expedient for promoting the purposes of the said institution; which several functions they should be free to exercise in the form of bye-laws, rules, resolutions, orders, instructions, or otherwise, as they should deem proper:

That they should have two Stated Meetings in the year, and occasional meetings at such times as they should appoint, or on a special call with such notice as themselves shall prescribe by a general rule; which meeting should be at the University; a majority of them constituting a quorum for business; and that on the death or resignation of a member, or on his removal by the President and Directors of the Literary Fund, or the Executive, or such other authority as the Legislature shall think best, such President and Directors, or the Executive, or other authority, should appoint a successor:

*A police exercised by the students themselves, under proper direction, has been tried with success in some countries, and

the rather as forming them for initiation into the duties and practices of civil life.

That the said Visitors should appoint one of their own body to be Rector, and with him be a body corporate, under the style and title of the Rector and Visitors of the University of Virginia, with the right as such, to use a common seal; that they should have capacity to plead and be impleaded, in all courts of justice, and in all cases interesting to the University, which may be the subjects of legal cognizance and jurisdiction; which pleas should not abate by the determination of their office, but should stand revived in the name of their successors; and they should be capable in law, and in trust for the University, of receiving subscriptions and donations, real and personal, as well from bodies corporate, or persons associated, as from private individuals:

And that the said Rector and Visitors should at all times conform to such laws, as the Legislature may from time to time think proper to enact for their government; and the said University should in all things, and at all times be subject to the control of the Legislature.

And lastly, the Commissioners report to the Legislature the following conditional offers to the President and Directors of the Literary Fund, for the benefit of the University:

On the condition that Lexington, or its vicinity shall be selected as the site of the University, and that the same be permanently established there within two years from the date, John Robinson, of Rockbridge County, has executed a deed to the President and Directors of the Literary Fund, to take effect at his death, for the following tracts of land, to wit:

400 acres on the north fork of James River, known by the name of Hart’s bottom, purchased of the late general Bowyer.

171 acres adjoining the same, purchased of James Griggsby. 203 acres joining the last mentioned tract, purchased of William Paxton. 112 acres lying on the North River, above the lands of Arthur Glasgow, conveyed to him by William

Paxton’s heirs. 500 acres joining the lands of Arthur Glasgow, Benjamin Cambden, and David Edmondson. 545 acres lying in Pryor’s Gap, conveyed to him by the heirs of William Paxton, deceased. 260 acres lying in Childers’ Gap, purchased of William Mitchell. 300 acres lying also in Childers’ Gap, purchased of Nicholas Jones. 500 acres lying on Buffalo, joining the lands of James Johnston. 340 acres on the Cow-pasture River, conveyed to him by general James Breckenridge, reserving the

right of selling the two last mentioned tracts, and converting them into other lands contiguous to Hart’s bottom, for the benefit of the University: Also the whole of his slaves, amounting to 57 in number: one

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APPENDIX B

lot of twenty-two acres, joining the town of Lexington, to pass immediately, on the establishment of the University, together with all the personal estate of every kind; subject only to the payment of his debts, and fulfilment of his contracts.

It has not escaped the attention of the Commissioners, that the deed referred to is insufficient to pass the estate in the lands intended to be conveyed, and may be otherwise defective; but if necessary, this defect may be remedied before the meeting of the Legislature, which the Commissioners are advised will be done.

The Board of Trustees of Washington College, have also proposed to transfer the whole of their funds, viz.

100 shares in the funds of the James River Company. 31 acres of land on which all their buildings stand. Their philosophical apparatus; their expected interest in the funds of the Cincinnati society; the

Libraries of the Graham and Washington societies; and 3000 dollars in cash; on condition that a reasonable provision be made for the present Professors. A subscription has also been offered by the people of Lexington and its vicinity, amounting to 17,878

dollars; all which will appear from the deed and other documents, reference thereto being had. In this case also, it has not escaped the attention of the Commissioners, that questions may arise as to

the power of the Trustees to make the above transfers. On the condition that the Central College shall be made the site of the University, its whole property,

real and personal, in possession, or in action, is offered. This consists of a parcel of land of 47 acres, whereon the buildings of the College are begun, one pavilion and its appendix of dormitories, being already far advanced, and with one other pavilion, and equal annexation of dormitories, being expected to be completed during the present season. Of another parcel of 153 acres, near the former, and including a considerable eminence very favorable for the erection of a future observatory. Of the proceeds of the sale of two glebes, amounting to 3,280 dollars 86 cents; and of a subscription of 41,248 dollars, on papers in hand, besides what is on outstanding papers, of unknown amount, not yet returned. Out of these sums are to be taken, however, the cost of the lands, of the buildings, and other works done, and for existing contracts.

For the conditional transfer of these to the President and Directors of the Literary Fund, a regular power signed by the subscribers and founders of the College generally; has been given to its Visitors and Proctor, and a deed conveying the said property accordingly, to the President and Directors of the Literary Fund, has been duly executed by the said Proctor, and acknowledged for record in the office of the Clerk of the County Court of Albemarle.

Signed and certified by the members present, each in his proper hand-writing, this 4th day of August, 1818.

TH: JEFFERSON, PHIL: C. PENDLETON, CREED TAYLOR, SPENCER ROANE, PETER RANDOLPH, JOHN M. C. TAYLOR, WM. BROCKENBROUGH, J. G. JACKSON, ARCH’D RUTHERFORD, THOS. WILSON, ARCH’D STUART, PHIL. SLAUGHTER, JAMES BRECKENRIDGE, WM. H. CABELL, HENRY E. WATKINS, NATHL. H. CLAIBORNE, JAMES MADISON, WM. A. G. DADE,

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ARMISTEAD T. MASON, WM. JONES. HUGH HOLMES, To all persons to whom these presents shall come, Nelson Barksdale, of the County of Albemarle, Proctor of the Central

College within the same County; Greeting; By virtue of the powers granted to me by certain homologous instruments of writing, signed and

executed by the sundry subscribers, contributors and founders of the said College, which several instruments are all of the same tenor, and expressed in these words following, to wit: “Whereas by an Act of the General Assembly for appropriating a part of the revenue of the Literary Fund to the endowment of an University, and for the appointment of commissioners to enquire and report to the Legislature a proper site for the same, ‘The said Commissioners are authorized to receive any voluntary contributions, whether conditional or absolute, whether in land, money or other property, which may be offered through them, to the President and Directors of the Literary Fund, for the benefit of the University.’ “Be it therefore known, that we the subscribers, contributors and founders of the establishment, of the Central College, near Charlottesville, do hereby authorize and empower the Visitors of the said College, or a majority of them, or the Proctor thereof, to offer through the said Commissioners to the President and Directors of the Literary Fund the said Central College with all the lands, monies, credits and other property thereunto belonging, and of the same to make an absolute conveyance, on condition that the lands of the said College be ultimately adopted by the Legislature as the site of the said University: in witness whereof we have hereunto subscribed our names,” (as by the said several instruments with the names duly subscribed in the proper hand writing of each subscriber, will more certainly appear; Know ye, that I, the said Nelson Barksdale, Proctor of the said College, by this my deed, indented, sealed and delivered, in consideration of the sum of one dollar to me in hand paid for the use of the said College, and of the condition precedent herein after stated, do give, grant, bargain and sell, offer and convey to the said President and Directors of the Literary Fund, for the benefit of the said University of Virginia now proposed to be established, all the lands, monies, credits and other property of whatever form, nature or value, to the said Central College belonging, wheresoever the same may be, or in whatsoever hands. To have and to hold the same to the said President and Directors of the said Literary Fund, and their successors, to and for the sole use and benefit of the said University of Virginia: On the condition precedent, that the lands of the said College in the said County of Albemarle be ultimately adopted by the Legislature of this Commonwealth, or by those whom they shall authorize thereto, as the site of the said University of Virginia: which condition being previously fulfilled, this deed is to be in full force, but otherwise to become void and of no effect. In testimony whereof I have hereunto set my hand and seal this 27th day of July 1818.

NELSON BARKSDALE, (SEAL.)

Proctor to the C. College. Signed, sealed and delivered in presence of

FRANK CARR, JAMES LEITCH, JAMES BROWN.

In the office of the County Court of Albemarle, the 27th day of July 1818. This Indenture was produced to me in my office the date above, and acknowledged by Nelson

Barksdale, Proctor to the Central College, party thereto, to be his hand and seal, act and deed, and

33

APPENDIX B

admitted to record according to law. Teste

ALEX. GARRETT, C. C. A copy. Teste

ALEX. GARRETT, C. C. Whereas, by an act of the General Assembly for appropriating a part of the revenue of the Literary Fund to the endowment of an University and for the appointment of Commissioners to enquire and report to the Legislature, a proper site for the same, the said Commissioners are authorised “to receive any voluntary contributions whether conditional or absolute, whether in land, money, or other property, which may be offered, through them, to the President, and Directors of the Literary Fund, for the benefit of the University:” Be it therefore known, that we, the subscribers, contributors and founders of the establishment of the Central College, near Charlottesville, do hereby authorise and empower the Visitors of the said College, or a majority of them, or the proctor thereof, to offer, through the said Commissioners, to the President and Directors of the Literary Fund, the said Central College, with all the lands, moneys, credits and other property thereto belonging, and of the same to make an absolute convey-ance: On condition, that the lands of the said College be ultimately adopted by the Legislature as the site of the said University. In Witness whereof, we have hereto subscribed our names.

William Mitchell, John P. Cobbs, Joel Yancey, Landon Cabell, Chas. Johnston, Thomas J. McCleland, H. Harrison, William Cabell, Richard Pollard, George Callaway, Robert Morriss, John H. Craven, Thomas Wells, Frank Carr, William Garth, John Minor, Moses Peregoy, William Brown, John Fretwell, James Clark, James Madison, James H. Terrell, J. H. Cocke, Ira Harris, Joseph C. Cabell, Nelson Barksdale, Zachariah Nevill, Garland Garth, Henry Dawson, Thomas J. Randolph, Ro. Rives, William Woods, W. C. Rives, John M. Perry, George M. Woods, N. Bramham, Daniel F. Carr, Samuel L. Hart, Alexander Garrett, John Winn, William Leitch, Ira Garrett, James Dinsmore, John Jones, James Leitch, Fras. B. Dyer, J. W. Garth, John Watson, L. M. V. W. Southall, John Slaughter, George W. Kinsolving, Jo. Bishop, William Watson, J. Goss,

34


John C. Ragland, Jas. Minor, Samuel Leitch, Ben. Hardin, O. Norris, William Dunkum, P. Minor, Jas. O. Carr, Thomas Jefferson, Drury Wood, Jeremiah A. Goodman, Dixon Dedman, Arthur Whitehurst, Clif. Harris, John Walker, Charles Brown, Jesse Garth, Reuben Maury, J. Pollock, Mann Page, John Fagg, J. H. Marks, C. Wirtenbaker, Francis McGehee, William H. Meriwether, I. A. Coles, Allen Dawson, John Coles, Hugh Chisholm, James Lindsay, Saml. Carr, Martin Thacker, N. H. Lewis, Christopher Hudson, David Isaacs, John Harris, Lewis Tul, Richard Woods, Peter Porter, John Dunkum, Daniel M. Raily, Thomas Eston Randolph, Thomas Wood, Joseph Coffman, John F. Carr, John Hudson, Henry Chiles, Elijah Brown, Achilles Broadhead, James Wood, Micajah Woods, Thomas W. Maury, Tucker Coles, Zachariah Shackleford, Samuel Dyer, Sen.

35

APPENDIX B

4

THE STATUTE OF 1819

CHAPTER XIX.—An act for establishing an University Passed January 25th, 1819

1. Be it declared by the General Assembly of Virginia, That the conveyance of the lands and other property appertaining to the Central College in the county of Albemarle, which has been executed by the proctor thereof, under authority of the subscribers and founders, to the President and Directors of the Literary Fund, is hereby accepted, for the use, and on the conditions in the said deed of conveyance expressed.

2. And be it enacted, That there shall be established, on the site provided for the said college, an university, to be called, “The University of Virginia;” that it shall be under the government of seven visitors to be appointed forthwith by the Governor, with the advice of Council, notifying thereof the persons so appointed, and prescribing to them a day for their first meeting at the said University, with supplementary instructions for procuring a meeting subsequently, in the event of failure at the time first appointed.

3. The said visitors, or so many of them as, being a majority, shall attend, shall appoint a rector, of their own body, to preside at their meetings, and a secretary to record, attest, and preserve their proceedings, and shall proceed to examine into the state of the property conveyed as aforesaid; shall make an inventory of the same, specifying the items whereof it consists; shall notice the buildings and other improvements already made, and those which are in progress; shall take measures for their completion, and for the addition of such others, from time to time, as may be necessary.

4. In the said university shall be taught the Latin, Greek and Hebrew languages, French, Spanish, Italian, German and Anglo-Saxon, the different branches of mathematics, pure and physical—natural philosophy, the principles of agriculture, chemistry, mineralogy, including geology, botany, zoology, anatomy, medicine, civil government, political economy, the law of nature and nations, municipal law, history, ideology, general grammar, ethics, rhetorick, and belles lettres; which branches of science shall be so distributed, and under so many professors, not exceeding ten, as the visitors shall think proper and expedient.

5. Each professor shall be allowed the use of the apartments and accommodations provided for him, and those first employed such standing salary as the visitors shall think proper and sufficient, and their successors such standing salary, not exceeding one thousand dollars, as the visitors shall think proper and sufficient, with such tuition fees from each student, as the visitors shall from time to time establish.

6. The said visitors shall be charged with the erection, preservation and repair of the buildings, the care of the grounds and appurtenances, and of the interests of the University generally: they shall have power to appoint a Bursar, employ a Proctor, and all other necessary Agents, to appoint and remove Professors, two thirds of the whole number of visitors voting for the removal; to prescribe their duties, and the course of education, in conformity with the law; to establish rules for the government and discipline of the students, not contrary to the laws of the land; to regulate the tuition fees, and the rent of the dormitories occupied; to prescribe and control the duties and proceedings of all officers, servants and others, with respect to the buildings, lands, appurtenances and other property, and interests of the university; to draw from the Literary Fund such monies as are by law charged on it for this institution; and, in general, to direct and do all matters and things which, not being inconsistent with the laws of the land, to them shall seem most expedient, for promoting the purposes of the said institution; which several functions they shall be free to exercise in the form of by-laws, rules, resolutions, orders, instructions, or otherwise, as they shall deem proper.

7. They shall have two stated meetings in every year, to wit: on the first Mondays of April and October;

36


and occasional meetings at such other times as they shall appoint, or on a special call, with such notice as themselves shall prescribe by a general rule; which meetings shall be at the university; a majority of them constituting a quorum for business, and on the death, resignation of a member, or failure to act for the space of one year, or on his removal out of the Commonwealth, or by the Governor, with the advice of Council, the Governor with like advice shall appoint a successor.

8. The said rector and visitors shall be a body corporate, under the style and title of The Rector and Visitors of the University of Virginia, with the right, as such, to use a common seal; they shall have capacity to plead and be impleaded in all courts of justice, and in all cases interesting to the university, which may be subjects of legal cognizance and jurisdiction; which pleas shall not abate by the determination of their office, but shall stand revived in the name of their successors; and they shall be capable in law, and in trust for the university, of receiving subscriptions and donations real and personal, as well from bodies corporate, or persons associated, as from private individuals.

9. And the said rectors and visitors shall, at all times, conform to such laws as the Legislature may, from time to time, think proper to enact for their government; and the said university shall, in all things, and at all times, be subject to the control of the Legislature. And the said rector and visitors of the University of Virginia shall be, and they are hereby required to make report, annually, to the President and Directors of the Literary Fund, (to be laid before the Legislature at their next succeeding session,) embracing a full account of the disbursements, the funds on hand, and a general statement of the condition of the said university.

10. The said board of visitors, or a majority thereof, by nomination of the board, shall, once in every year at least, visit the said university; enquire into the proceedings and practices thereat; examine the progress of the students, and give to those who excell in any branch of science, there taught, such honorary marks and testimonies of approbation as may encourage and excite to industry and emulation.

11. On every twenty-ninth of February, or, if that be Sunday, then on the next, or earliest, day thereafter, on which a meeting can be effected, the Governor and Council shall be in session, and shall appoint visitors of the said university, either the same or others, at their discretion, to serve until the twenty-ninth day of February next ensuing, duly and timely notifying to them their appointment, and prescribing a day for their first meeting at the university; after which, their meetings, stated and occasional, shall be as herein-before provided: Provided, that nothing in this act contained shall suspend the proceedings of the visitors of the said central college of Albemarle; but for the purpose of expediting the objects of the said institution, they shall be authorized, under the control of the Governor and Council, to continue the exercise of their functions, and fulfil those of their successors, until the first actual meeting of their said successors.

12. And be it further enacted, That the additional sum of twenty thousand dollars shall be, and the same is hereby appropriated to the education of the poor, out of the revenue of the Literary Fund, in aid of the sum heretofore appropriated to that object, and to be paid in the same manner, and upon the same conditions in all respects, as is prescribed by the fourth section of the act, entitled, “an act appropriating part of the revenue of the Literary Fund, and for other purposes,” passed the twenty-first day of February, eighteen hundred and eighteen.

13. This act shall commence and be in force from and after the passing thereof. [This section was repealed on 3 March of the same year.]

22. This act shall commence and be in force from after the first day of January eighteen hundred and twenty; except so much thereof as repeals the additional appropriation of twenty thousand dollars, annually, out of the revenue of the literary fund; and so much of this act as repeals the said appropriation shall commence and be in force from and after the passing thereof.

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APPENDIX B

B

THE BOARD OF VISITORS FROM 1819 THROUGH 2012

Period of Service Thomas Jefferson of Albemarle 1819–1826 James Madison of Orange 1819–1834 Joseph Cabell of Nelson 1819–1856 John H. Cocke of Fluvanna 1819–1851 Chapman Johnson of Richmond 1819–1845 James Breckenridge of Fincastle 1819–1833 Robert Taylor of Norfolk 1819–1820 George Loyall of Norfolk 1823–1828 James Monroe of Loudoun 1827–1831 William C. Rives of Albemarle 1828–1829 1834–1849 Thomas Jefferson Randolph of Albemarle 1829–1853 1857–1864 William H. Brodnax of Dinwiddie 1831–1834 James M. Mason of Alexandria 1833–1851 Samuel Taylor of Richmond 1835–1845 Andrew Stevenson of Albemarle 1845–1857 Robert M. T. Hunter of Lloyds 1845–1851 Thomas L. Preston of Albemarle 1849–1851 1864–1865 1866–1872 Early records are inexact because of variations in the definition of a “session.”

38


Period of Service John Y. Mason of Richmond 1851–1853 Henry A. Wise of Accomac 1851–1855 William Lucas of Jefferson* 1851–1855 Fleming B. Miller of Botetourt 1851–1855 Robert A. Thompson of Kanawha* 1851–1853 Andrew McDonald of Monongalia* 1851–1854 Harrison B. Tomlin of King William 1853–1855 William J. Robertson of Albemarle 1853–1859 James L. Carr of Kanawha* 1853–1859 Sherrard Clemens of Wheeling* 1854–1855 Muscoe R. H. Garnett of Essex 1855–1859 William T. Joynes of Petersburg 1855–1859 John R. Edmunds of Halifax 1855–1864 John B. Baldwin of Augusta 1855–1864 John R. Tucker of Winchester 1855–1859 James Neeson of Marion 1855–1864 Roger A. Pryor of Petersburg 1859–1862 Patrick Henry Aylett of Richmond 1859–1864 Franklin Minor of Albemarle 1859–1864 William H. Terrell of Bath 1859–1864 George W. Summers of Kanawha* 1860–1862 Douglas H. Gordon of Fredericksburg 1861–1864 Allen T. Caperton of Monroe* 1862–1864 R. H. Cunningham of Culpeper 1864–1865 William Frazier of Rockbridge 1864–1865 John Brannon of Lewis* 1864–1865 John M. Daniel of Richmond 1864–1865 Thomas S. Flournoy of Halifax 1864–1865 F. W. M. Holliday of Winchester 1864–1865 George W. Randolph of Richmond 1864–1865 James W. Sheffey of Smythe 1864–1865 *Now in West Virginia.

Period of Service Alexander Rives of Albemarle 1865–1866 Thomas C. Tabb of Norfolk 1865–1866 Thomas J. Pretlow of Southampton 1865–1872 Marmaduke Johnson of Richmond 1865–1872 B. Johnson Barbour of Orange 1865–1873 John R. Woods of Albemarle 1865–1872 Charles L. Mosby of Lynchburg 1865–1867 Samuel H. Lewis of Rockingham 1865–1869 R. W. Hughes of Abingdon 1865–1872 Samuel Watts of Portsmouth 1866–1872

39

APPENDIX B

William E. M. Word of Botetourt 1867–1872 R. G. H. Kean of Lynchburg 1872–1876 1890–1894 R. H. Baker of Norfolk 1872–1875 W. R. Berkeley of Farmville 1872–1876 Joseph T. Campbell of Abingdon 1872–1876 E. H. Montague of King and Queen 1872–1876 Thomas Smith of Warrenton 1872–1876 Moses Walton of Shenandoah 1872–1876 Micajah Woods of Charlottesville 1872–1876 Isaac H. Carrington of Richmond 1873–1876 G. P. Scarborough of Norfolk 1875–1876 A. H. H. Stuart of Staunton 1876–1882 1886–1887 Thomas S. Bocock of Lynchburg 1876–1882 Holmes Conrad of Winchester 1876–1882 1886–1890 James H. Gilmore of Marion 1876–1882 John Goode Jr. of Norfolk 1876–1882 John Hart of Richmond 1876–1880 Dr. W. C. N. Randolph of Charlottesville 1876–1882 1886–1898 Paul Whitehead of Farmville 1876–1882 John L. Marye of Fredericksburg 1876–1882 1886–1890 John F. Lay of Richmond 1880–1882 Wyatt M. Elliott of Spout Spring 1882–1884 John W. Bell of Culpeper 1882–1886 Francis S. Blair of Wytheville 1882–1886 T. T. Fauntleroy Jr. of Winchester 1882–1883 George W. Hansborough of Salem 1882–1886 William Lamb of Norfolk 1882–1884 John Paul of Ottobine 1882–1883 W. Roane Ruffin of Port Walthall 1882–1886 Daniel Ruggles of Fredericksburg 1882–1885 Hugh M. Taylor of Richmond 1883–1886 George T. Barbee of Bridgewater 1883–1886 Edward C. Burks of Lynchburg 1884–1886 William Byrd of Winchester 1885–1886 V. D. Groner of Norfolk 1885–1886 R. W. Martin of Chatham 1886–1888 1892–1896 W. H. Payne of Warrenton 1886–1887 W. A. Stuart of Saltville 1886–1890 E. C. Venable of Petersburg 1886–1888 R. L. Parrish of Covington 1886–1894

40


Period of Service George Perkins of Charlottesville 1887–1888 Burr P. Noland of Middleburg 1887–1889 W. H. Bolling of Wytheville 1888–1892 Mason Gordon of Charlottesville 1888–1892 W. Gordon McCabe of Petersburg 1888–1896 Leigh R. Watts of Portsmouth 1888–1892 1893–1898 Camm Patteson of Buckingham 1890–1897 J. Marshall McCormick of Berryville 1890–1898 Basil B. Gordon of Sandy 1892–1896 Thomas S. Martin of Scottsville 1892–1896 Armistead C. Gordon of Staunton 1893–1898 1905–1918 R. Tate Irvine of Wise and Big Stone Gap 1895–1904 1908–1920 Joseph Bryan of Richmond 1896–1902 W. B. McIlwaine of Petersburg 1896–1899 Daniel Harmon of Charlottesville 1896–1912 Charles P. Jones of Monterey 1897–1906 Henry T. Wickham of Richmond 1897–1898 Algernon B. Chandler of Bowling Green 1897–1902 Henry H. Downing of Front Royal 1897–1906 Carter Glass of Lynchburg 1897–1906 George W. Miles of Radford 1897–1902 M. Q. Holt of Wakefield 1898–1900 Robert Walton Moore of Fairfax 1900–1908 Eppa Hunton Jr. of Richmond 1902–1908 Alexander W. Wallace of Fredericksburg 1902–1905 Henry C. Stuart of Elk Garden 1902–1903 W. H. White of Norfolk and Richmond 1903–1918 Benjamin Franklin Buchanan of Marion 1904–1908 1926–1932 John Wimbish Craddock of Lynchburg 1905–1918 Henry Delaware Flood of Appomattox 1905–1914 James Keith Marshall Norton of Alexandria 1905–1914 1916–1920 George Scott Shackelford of Orange 1908–1912 William Francis Drewry of Petersburg 1908–1916 William Mann Randolph of Charlottesville 1912–1913 Walter Tansill Oliver of Fairfax 1912–1916 1919–1924 George Rust Bedinger Michie of Charlottesville 1913–1920 Joseph William Chinn Jr. of Warsaw 1914–1916 Goodrich Hatton of Portsmouth 1914–1922 Frank Waring Lewis of Morattico 1915–1918 Robert Turnbull of Lawrenceville 1916–1919

41

APPENDIX B

Period of Service Cyrus Harding Walker of Heathsville 1917–1934 John Stewart Bryan of Richmond 1918–1922 Hughes Dalton Dillard of Rocky Mount 1918–1926 Alexander Farish Robertson of Staunton 1918–1922 Edgar Lee Greever of Tazewell 1919–1924 Frederic William Scott of Richmond 1919–1939 William Richard Duke of Charlottesville 1920–1924 Paul Goodloe McIntire of Charlottesville 1922–1934 Emilie Watts McVea of Sweet Briar 1922–1926 Lewis Catlett Williams of Richmond 1922–1946 Marshall Carter Hall of Fairfax 1924–1928 David Denton Hull Jr. of Roanoke 1924–1930 Hollis Rinehart of Charlottesville 1924–1943 Orie Latham Hatcher of Richmond 1925–1926 Mary Cooke Branch Munford of Richmond 1926–1938 Adam Clarke Carson of Riverton 1928–1932 Virginius Randolph Shackelford of Orange 1930–1931 William Alexander Stuart of Abingdon 1931–1938 Robert Gray Williams of Winchester 1931–1946 Christopher Browne Garnett of Cherrydale 1932–1953 James Howard Corbitt of Suffolk 1933–1945 Charles O’Conor Goolrick of Fredericksburg 1933-1946 Beverley Dandridge Tucker Jr. of Richmond 1937–1942 Bessie Carter Randolph of Hollins 1939–1941 Robert William Daniel of Brandon 1939–1940 Edward Reilly Stettinius Jr. of Rapidan 1941–1949 Edward Clifford Anderson of Richmond 1942–1953 Aubrey Gardner Weaver of Front Royal 1942–1944 William Dandridge Haden of Charlottesville 1942–1945 Maitland Hunt Bustard of Danville 1943–1947 Mary Whitworth Calcott of Norfolk 1943–1949 Mary Phoebe Enders Willis of Fredericksburg 1943–1953 Bertha Pfister Wailes of Sweet Briar 1943–1955 Lila Gilmer of Pulaski 1943–1945 Richard A. Carrington Jr. of Lynchburg 1944–1955 Barron Foster Black of Norfolk 1944–1956 Dr. John Morehead Emmett of Clifton Forge 1945–1946 1950–1959 Alfred Dickinson Barksdale of Lynchburg 1945–1957 Thomas Benjamin Gay of Richmond 1945–1955 Dr. Hugh Henry Trout Sr. of Roanoke 1945–1950 Benjamin William Mears of Eastville 1946–1957 John Segar Gravatt of Blackstone 1948–1959 Emily Pancake Smith of Staunton 1949–1959 Frank Talbott Jr. of Danville 1949–1960

42


Period of Service Whitwell Wentworth Coxe of Roanoke 1953–1962 Lillian Lucille Wheeler of Newport News 1953–1960 Howard Worth Smith of Alexandria and Fauquier 1953–1960 Belva T. Dunn Jones of Richmond 1954–1962 Henry E. McWane of Lynchburg 1954–1962 Horace Alfred Gray Jr. of Richmond 1955–1958 Norborne Berkeley of Bethlehem, Pa. 1955–1963 Herbert C. Pollock of Schenectady, N.Y. 1955–1963 Joseph M. Hartfield of New York, N.Y. 1956–1963 Albert Vickers Bryan of Alexandria 1956–1964 Fred Bonham Greear of Norton 1956–1960 Dr. Walter B. Martin of Norfolk 1956–1964 Raynell G. Lantor of South Boston 1958–1966 Charles R. Fenwick of Arlington 1958–1966 E. Sclater Montague of Hampton 1958–1966 Thomas H. Blanton of Bowling Green 1959–1965 William McCutcheon Camp of Franklin 1960–1966 Hunter Faulconer of Charlottesville 1960–1968 Lawrence Lewis Jr. of Richmond 1960–1968 1970–1978 Dr. Edwin L. Kendig Jr. of Richmond 1961–1972 Walkley Elmes Johnson of Exmore 1962–1970 Frank Waters Rogers of Roanoke 1962–1970 Lewis M. Walker Jr. of Petersburg 1962–1970 Richard S. Cross of Philadelphia, Pa. 1963–1971 William A. Hobbs of Cleveland, Ohio and Charlottesville 1963–1967 Langbourne M. Williams of New York, N.Y., and Rapidan 1963–1968 J. Sloan Kuykendall of Winchester 1964–1972 Molly Vaughan Parrish of Newport News 1964–1972 William M. Birdsong of Suffolk 1966–1970 Emma Ziegler Brown of Richmond 1966–1974 Albertis S. Harrison Jr. of Lawrenceville 1966–1967 Dr. J. Hartwell Harrison of Boston, Mass. 1966–1974 J. Harvie Wilkinson Jr. of Richmond 1966–1970 William S. Potter of Wilmington, Del. 1967–1979 W. Wright Harrison of Norfolk 1968–1976 Joseph H. McConnell of Richmond 1968–1976 C. Stuart Wheatley Jr. of Danville 1968–1972 C. Waller Barrett of Charlottesville 1969–1979 Edwin K. Mattern of Roanoke 1970–1978 Dr. Brownie E. Polly Jr. of Big Stone Gap 1970–1974 Donald E. Santarelli of Alexandria 1970–1978 J. Harvie Wilkinson III of Charlottesville 1970–1973 Hugh Scott of Philadelphia, Pa., and Washington, D.C. 1971–1979 Robert P. Buford of Richmond 1972–1980 Warren B. French Jr. of Edinburg 1972–1980

43

APPENDIX B

Period of Service William E. Leggett of Charlottesville 1972–1980 William L. Zimmer III of Richmond 1972–1980 Dr. DuPont Guerry III of Richmond 1974–1982 Virginia Rogers Holton of Roanoke and McLean 1974–1982 Howard W. McCall Jr. of Darien, Conn. 1974–1982 George C. Palmer II of Charlottesville 1974–1982 William C. Battle of Charlottesville 1976–1980 William M. Dudley of Lynchburg 1976–1984 Stephen C. Mahan of Richmond 1978–1982 Dr. Frank S. Royal of Richmond 1978–1982 D. French Slaughter Jr. of Culpeper 1978–1982 Robert V. Hatcher Jr. of Greenwich, Conn. 1979–1983 Dr. Glenn B. Updike Jr. of Danville 1979–1983 E. Massie Valentine Sr. of Richmond 1979–1987 C. Clarke Cunningham Jr. of Radford 1980–1984 David N. Montague of Hampton 1980–1984 Ferman W. Perry of Winchester 1980–1984 Fred G. Pollard of Richmond 1980–1988 Carl W. Smith of Charlottesville 1980–1988 John S. Battle Jr. of Kilmarnock 1982–1990 William M. Camp Jr. of Franklin 1982–1990 Mrs. George M. Cochran of Staunton 1982–1990 Joshua P. Darden Jr. of Norfolk 1982–1990 William R. Harvey of Hampton 1982–1986 James L. Trinkle of Roanoke 1982–1990 Neal O. Wade Jr. of Houston, Tex. 1982–1986 Henry A. Dudley of Washington, D.C. 1983–1988 Dr. Edgar N. Weaver of Roanoke 1983–1989 James S. Cremins of Richmond 1984–1988 Jesse B. Wilson III of Alexandria 1984–1992 Edward Elliott Elson of Atlanta, Ga. 1984–1992 Thomas E. Worrell Jr. of Charlottesville 1984–1992 Lemuel E. Lewis of Virginia Beach 1986–1990 Charles L. Brown of Princeton, N.J. 1986–1990 S. Buford Scott of Richmond 1987–1994 W. L. Lyons Brown Jr. of Prospect, Ky. 1988–1995 Waller H. Horsley of Richmond 1988–1992 Elizabeth Davies Morie of Lexington and Staunton 1988–1996 Robert G. Butcher Jr. of Richmond 1988–1996 Dr. N. Thomas Connally of Arlington 1989–1995 Hovey S. Dabney of Charlottesville 1990–1998 Dr. John Thomas Hulvey of Abingdon 1990–1994 Evans B. Jessee of Roanoke 1990–1997 Pat Kluge of Charlottesville 1990–1995 Arnold H. Leon of Norfolk 1990–1997 Leigh B. Middleditch Jr. of Charlottesville 1990–1994

44


Period of Service Freddie W. Nicholas Sr. of Ettrick 1990–1994 Mortimer M. Caplin of Bethesda, Md. 1992–1997 Warner N. Dalhouse of Roanoke 1992–1997 Albert H. Small of Bethesda, Md. 1992–2000 Daniel A. Hoffler of Eastville 1992–1996 Franklin K. Birckhead of Charlottesville 1994–1998 Dr. Charles M. Caravati Jr. of Richmond 1994–2002 Elsie Goodwyn Holland of Richmond 1994–2003 C. Wilson McNeely III of Charlottesville 1994–1998 John P. Ackerly III of Richmond 1995–2003 T. Keister Greer of Rocky Mount 1995–2003 Elizabeth A. Twohy of Virginia Beach 1995–2003 Champ Clark of Ruckersville 1996–2000 William H. Goodwin Jr. of Richmond 1996–2004 Henry L. Valentine II of Richmond 1996–2000 William G. Crutchfield Jr. of Charlottesville 1997–2005 Terence P. Ross of Alexandria 1997–2005 Walter F. Walker of Seattle, Wash. 1997–2001 James C. Wheat III of Richmond 1997–2001 Timothy B. Robertson of Virginia Beach 1998–2002 2011- Benjamin P. A. Warthen of Richmond 1998–2002 Joseph E. Wolfe of Wise 1998–2002 Thomas J. Bliley Jr. of Richmond and Washington DC 2000–2004 Charles L. Glazer of Connecticut 2000–2004 Gordon F. Rainey Jr. of Richmond 2000–2008 Thomas F. Farrell II of Richmond 2001–2009 Thomas A. Saunders III of New York 2001–2005 Mark J. Kington of Alexandria 2002–2006 2010–2012 Don R. Pippin of Norton 2002–2010 Warren M. Thompson of Herndon 2002–2010 Edwin Darracott Vaughan Jr., M.D., of New York 2002–2010 Susan Y. Dorsey of Mechanicsville 2003–2011 Lewis F. Payne of Nellysford 2003–2011 Georgia M. Willis of Ruther Glen 2003–2007 John O. Wynne of Virginia Beach 2003–2011 G. Slaughter Fitz-Hugh Jr. of Richmond 2004–2008 W. Heywood Fralin of Roanoke 2004–2012 Glynn D. Key of Washington, D.C. 2004–2012

A. Macdonald Caputo of Connecticut 2005---2013

Alan A. Diamonstein of Newport News 2005---2013

Vincent J. Mastracco Jr. of Norfolk 2005---2013

Formatted: Indent: Left: 0"



45

APPENDIX B

Daniel R. Abramson of Alexandria 2006–2010 W. Austin Ligon of Manakin-Sabot 2007–2011 Helen E. Dragas of Virginia Beach 2008– Period of Service Robert D. Hardie of Charlottesville 2008–2012 Randal J. Kirk of Belspring 2009–2012 Hunter E. Craig of Charlottesville 2010– Marvin W. Gilliam Jr. of Bristol 2010– Sheila C. Johnson of The Plains 2010–2011 Allison Cryor DiNardo of Alexandria 2011– Stephen P. Long, M.D., of Richmond 2011– George Keith Martin of Mechanicsville 2011– John L. Nau III of Texas 2011– Edward D. Miller, M.D., of Maryland 2012– Frank B. Atkinson of Richmond 2012– Victoria D. Harker of McLean 2012– Bobbie G. Kilberg of McLean 2012– Linwood H. Rose of Harrisonburg 2012–

STUDENT MEMBERS OF THE BOARD OF VISITORS, 1983 –2012

Period of Service

Gordon F. Willis of Fredericksburg 1983–1984 Gregory C. Whitehead of Portsmouth 1984–1985 Timothy J. Ingrassia of Arlington 1985–1986 Angela L. Cleveland of Annandale 1986–1987 Jerry V. Glover of Charlottesville 1987–1988 Glynn D. Key of Chattanooga, Tennessee 1988–1989 Wendelin L. White of Williamsburg 1989–1990 Julie G. Lynn of Arlington 1990–1991 Adam S. Arthur of Harrisonburg 1991–1992 J. Scott Ballenger of Charleston, South Carolina 1992–1993 Christina A. Howe of Charlottesville 1993–1994 Allison S. Linney of Maitland, Florida 1994–1995 Matthew W. Cooper of Florence, Alabama 1995–1996 Sean N. Bryant of Reston 1996–1996 Charles F. Irons of Chapel Hill, North Carolina 1997–1997 Kristine L. LaLonde of Midlothian 1997–1998 J. Michael Allen of Dallas, Texas 1998–1999 Robert G. Schoenvogel of Dallas, Texas 1999–2000 Stephen S. Phelan Jr. of Montgomery, Alabama 2000–2001 Sasha L. Wilson Rehm of Charlottesville 2001–2002 H. Timothy Lovelace Jr. of Roanoke 2002–2003 John R. M. Rodney of Memphis, Tennessee 2003–2004 James W. Head of Charlottesville 2004–2005 Catherine S. Neale of Richmond 2005–2006


46


Anne Elizabeth Mullen of Greenwood 2006-2007 Carey J. Mignerey of Charlottesville 2007-2008 Adom Getachew of Arlington 2008-2009 Rahul K. Gorawara of Buffalo Grove, Illinois 2009-2010 Stewart H. Ackerly of Richmond 2010-2011 Jonathan B. Overdevest of Bridgetown, New Jersey 2011-2012 Hillary A. Hurd of Richmond 2012-2013

BOARD OF VISITORS SECRETARIES

FROM 1819 THROUGH 2009

Peter Minor 1825 Nicholas P. Trist 1826–1829 John A. G. Davis 1829–1830 Frank Carr 1830–1851 St. George Tucker 1851–1853 R. T. W. Duke 1853–1865 William Wertenbaker 1865–1871 James D. Jones 1871–1882 1886–1900 1902–1904 William A. Winston 1882–1886 J. B. Faulkner 1901–1902 Isaac Kimber Moran 1904–1912 Elmer Irving Carruthers 1912–1947 Vincent Shea 1947–1954 Francis L. Berkeley Jr. 1954–1958 Weldon Cooper 1958–1969 Raymond C. Bice Jr. 1969–1990 Alexander G. Gilliam Jr. 1991–2009 Susan G. Harris 2009–

47

APPENDIX C

C

PERTINENT LEGAL PROVISIONS RELATING TO THE UNIVERSITY OF VIRGINIA

EXCERPTED FROM THE CODE OF VIRGINIA, 1950, AS AMENDED THROUGH

THE REGULAR SESSION OF THE 2012 GENERAL ASSEMBLY

SECTION 23-69. BOARD A CORPORATION. The board of visitors of the University of Virginia shall be and remain a corporation, under the style of “the Rector and Visitors of the University of Virginia,” and shall have, in addition to its other powers, all the corporate powers given to corporations by the provisions of Title 13.1, except in those cases where, by the express terms of the provisions thereof, it is confined to corporations created under such title; and shall also have the power to accept, execute and administer any trust in which it may have an interest under the terms of the instrument creating the trust. The rector and visitors of the University of Virginia shall be at all times subject to the control of the General Assembly. SECTION 23-70. APPOINTMENT OF VISITORS GENERALLY; NUMBER AND TERMS OF OFFICE

A. The board of visitors is to consist of 17 visitors appointed by the Governor, of whom (i) at least 12 shall be appointed from the Commonwealth at large, (ii) at least 12 shall be alumni of the University of Virginia, and (iii) at least one shall be a physician with administrative and clinical experience in an academic medical center.

B. All appointments on or after July 1, 2008, shall be for terms of four years and commence July 1 of the first year of appointment, except that appointments to fill vacancies shall be made for the unexpired terms. Members shall complete their service on June 30 of the year in which their respective terms expire, including appointments made prior to July 1, 2008. All appointments for full terms, as well as to fill vacancies, shall be made by the Governor subject to confirmation by the Senate and the House of Delegates.

SECTION 23-71. APPOINTMENT OF VISITORS FROM NOMINEES OF ALUMNI ASSOCIATION

A. The Governor may appoint visitors from a list of qualified persons submitted to him, before or after induction into office, by the alumni association of the University of Virginia, on or before the first day of April of any year in which the terms of any visitors will expire.

B. Whenever a vacancy occurs otherwise than by expiration of term, the Governor shall certify this fact to the association and nominations may be submitted of qualified persons and the Governor may fill the vacancy, if his discretion so dictates, from among the eligible nominees of the association, whether or not alumni or alumnae.

C. Every list shall contain at least three names for each vacancy to be filled. D. The Governor is not to be limited in his appointments to the persons so nominated.

48

LEGAL PROVISIONS RELATING TO THE UNIVERSITY

E. At no time shall less than 12 of the visitors be alumni or alumnae of the University. SECTION 23-72. ELIGIBILITY TO SERVE MORE THAN TWO SUCCESSIVE TERMS No person shall be eligible to serve for or during more than two successive four-year terms; but after the expiration of a term of two years or less, or after the expiration of the remainder of a term to which appointed to fill a vacancy, two additional four-year terms may be served by such a member if appointed thereto. SECTION 23-73. WHEN OFFICE OF VISITOR DEEMED VACANT If any visitor fail to perform the duties of his office for one year, without sufficient cause shown to the board, the board of visitors shall, at their next meeting after the end of such year, cause the fact of such failure to be recorded in the minutes of their proceedings, and certify the same to the Governor; and the office of such visitor shall be thereupon vacant. If so many of such visitors fail to perform their duties that a quorum thereof do not attend for a year, upon a certificate thereof being made to the Governor by the rector or any member of the board, or by the president of the University, the offices of all visitors so failing to attend shall be vacant. SECTION 23-74. MEETINGS OF BOARD OF VISITORS; QUORUM; RECTOR AND VICE RECTOR; SECRETARY The board of visitors shall meet at the University once a year, and at such other times as they shall determine, the days of meeting to be fixed by them. Five members shall constitute a quorum. The board of visitors shall appoint, from among its members, a rector to preside at their meetings and a vice rector to preside at their meetings in the absence of the rector. The rector and the vice-rector shall also perform such additional duties as the board may prescribe. The terms of the rector and vice-rector shall be for two years, commencing on July 1 of the year of appointment and expiring on June 30 of the year of the expiration of their terms. The board shall also appoint a secretary for such term and with such duties as the board shall prescribe. The board may also appoint a substitute pro tempore, as provided in its bylaws, to preside in the absence of the rector or the vice-rector. Vacancies in the office of rector, vice-rector or secretary may be filled by the board for the unexpired term, as provided in the Board’s bylaws. Special meetings of the board may be called by the rector or any three members. In either of such cases, notice of the time of meeting shall be given by the secretary to every member. SECTION 23-75. EXECUTIVE COMMITTEE OF BOARD At every regular annual meeting of the board, the members shall appoint an executive committee for the transaction of business in the recess of the board, which shall consist of not less than three nor more than six members, to serve for the period of one year or until the next regular annual meeting. SECTION 23-76. POWERS AND DUTIES OF BOARD; PRESIDENT AND OTHER OFfiCERS; PROFESSORS AND INSTRUCTION; REGULATIONS The board shall be charged with the care and preservation of all property belonging to the University. They shall appoint a president, with such duties as may be prescribed by the board, and who shall have

49

APPENDIX C

supreme administrative direction under the authority of the board over all the schools, colleges and branches of the University wherever located, and they shall appoint as many professors as they deem proper, and, with the assent of two-thirds of the whole number of visitors, may remove such president or any professor. They may prescribe the duties of each professor, and the course and mode of instruction. They may appoint a comptroller and proctor, and employ any other agents or servants, regulate the government and discipline of the students, and the renting of the rooms and dormitories, and, generally, in respect to the government and management of the University, make such regulations as they may deem expedient, not being contrary to law. To enable the proctor and visitors of the University to procure a supply of water, and to construct and maintain a system of waterworks, drainage, and sewerage for the University they shall have power and authority to acquire such springs, lands and rights-of-way as may be necessary, according to the provisions of Title 25.1. SECTION 23-76.1. INVESTMENT OF ENDOWMENT FUNDS, ENDOWMENT INCOME, AND GIFTS; STANDARD OF CARE; LIABILITY; EXEMPTION FROM THE VIRGINIA PUBLIC PROCUREMENT ACT A. The board of visitors shall invest and manage the endowment funds, endowment income, gifts, all other nongeneral fund reserves and balances, and local funds of or held by the University in accordance with this section and the provisions of the Uniform Prudent Management of Institutional Funds Act (§ 55-268.11 et seq.). B. No member of the board of visitors shall be personally liable for losses suffered by an endowment fund, endowment income, gifts, all other nongeneral fund reserves and balances, or local funds of or held by the University, arising from investments made pursuant to the provisions of subsection A. C. The investment and management of endowment funds, endowment income, gifts, all other nongeneral fund reserves and balances, or local funds of or held by the University shall not be subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et seq.). D. In addition to the investment practices authorized by the Uniform Prudent Management of Institutional Funds Act (§ 55-268.11 et seq.), the board of visitors may also invest or reinvest the endowment funds, endowment income, gifts, all other nongeneral fund reserves and balances, and local funds of or held by the University in derivatives, options, and financial securities.

1. In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments, including, without limitation, any contract commonly known as a "swap," which gives the University the right or obligation to deliver or receive delivery of, or make or receive payments based on, changes in the price, value, yield or other characteristic of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.

2. In this section, an "option" means an agreement or contract whereby the University may grant or receive the right to purchase or sell, or pay or receive the value of, any personal property asset including, without limitation, any agreement or contract which relates to any security, contract or agreement.

3. In this section, "financial security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest, collateral-trust certificate, preorganization

50


certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

E. The authority as provided in this section as it relates to nongeneral fund reserves and balances of or held by the University is predicated upon an approved management agreement between the University and the Commonwealth of Virginia. SECTION 23-77.1. AUTHORITY TO SELL AND CONVEY CERTAIN LANDS The rector and visitors of the University of Virginia, with the approval of the Governor first obtained, are hereby authorized to sell and convey any and all real estate to which it has acquired title by gift, devise or purchase since January first, 1900, or which may hereafter be conveyed or devised to it. The proceeds derived from any such sale or sales shall be held by said rector and visitors of the University of Virginia upon the identical trusts, and subject to the same uses, limitations and conditions, if any, that are expressed in the original deed or will under which its title was derived, or if there be no such trusts, uses, limitations or conditions expressed in such original deed or will, then said funds shall be applied by the rector and visitors of the University to such purposes as said board may deem best for the University. [Sec. 23-4.1 of the Code permits the sale, with the consent of the Governor, of land acquired prior to 1900 by purchase, will or deed of gift.] SECTION 23-77.2. GRANTING EASEMENTS ON PROPERTY OF THE UNIVERSITY The rector and visitors of the University of Virginia are hereby authorized to grant easements for roads, streets, sewers, water lines, electric and other utility lines or other purpose on any property now owned or hereafter acquired by said rector and visitors of the University of Virginia, when in the discretion of the rector and visitors it is deemed proper to grant such easement. SECTION 23-77.3. OPERATIONS OF MEDICAL CENTER A. In enacting this section, the General Assembly recognizes that the ability of the University of Virginia to provide medical and health sciences education and related research is dependent upon the maintenance of high quality teaching hospitals and related health care and health maintenance facilities, collectively referred to in this section as the Medical Center, and that the maintenance of a Medical Center serving such purposes requires specialized management and operation that permit the Medical Center to remain economically viable and to participate in cooperative arrangements reflective of changes in health care delivery.

51

APPENDIX C

B. Notwithstanding the provisions of § 32.1-124 exempting hospitals and nursing homes owned or operated by an agency of the Commonwealth from state licensure, the Medical Center shall be, for so long as the Medical Center maintains its accreditation by the Joint Commission on Accreditation of Health Care Organizations or any successor in interest thereof, deemed to be licensed as a hospital for purposes of other law relating to the operation of hospitals licensed by the Board of Health. The Medical Center shall not, however, be deemed to be a licensed hospital to the extent any law relating to licensure of hospitals specifically excludes the Commonwealth or its agencies. As an agency of the Commonwealth, the Medical Center shall, in addition, remain (i) exempt from licensure by the Board of Health pursuant to § 32.1-124 and (ii) subject to the Virginia Tort Claims Act (§ 8.01-195.1 et seq.). Further, this subsection shall not be construed as a waiver of the Commonwealth's sovereign immunity.

C. Without limiting the powers provided in this chapter, the University of Virginia may create, own in whole or in part or otherwise control corporations, partnerships, insurers or other entities whose activities will promote the operations of the Medical Center and its mission, may cooperate or enter into joint ventures with such entities and government bodies and may enter into contracts in connection therewith. Without limiting the power of the University of Virginia to issue bonds, notes, guarantees, or other evidence of indebtedness under subsection D in connection with such activities, no such creation, ownership or control shall create any responsibility of the University, the Commonwealth or any other agency thereof for the operations or obligations of any such entity or in any way make the University, the Commonwealth, or any other agency thereof responsible for the payment of debt or other obligations of such entity. All such interests shall be reflected on the financial statements of the Medical Center.

D. Notwithstanding the provisions of Chapter 3 (§ 23-14 et seq.) of this title, the University of Virginia may issue bonds, notes, guarantees, or other evidence of indebtedness without the approval of any other governmental body subject to the following provisions:

1. Such debt is used solely for the purpose of paying not more than 50 percent of the cost of capital improvements in connection with the operation of the Medical Center or related issuance costs, reserve funds, and other financing expenses, including interest during construction or acquisitions and for up to one year thereafter;

2. The only revenues of the University pledged to the payment of such debt are those derived from the operation of the Medical Center and related health care and educational activities, and there are pledged therefor no general fund appropriation and special Medicaid disproportionate share payments for indigent and medically indigent patients who are not eligible for the Virginia Medicaid Program;

3. Such debt states that it does not constitute a debt of the Commonwealth or a pledge of the faith and credit of the Commonwealth;

4. Such debt is not sold to the public;

5. The total principal amount of such debt outstanding at any one time does not exceed $25 million;

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6. The Treasury Board has approved the terms and structure of such debt;

7. The purpose, terms, and structure of such debt are promptly communicated to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees; and

8. All such indebtedness is reflected on the financial statements of the Medical Center.

Subject to meeting the conditions set forth above, such debt may be in such form and have such terms as the board of visitors may provide and shall be in all respects debt of the University for the purposes of §§ 23-23, 23-25, and 23-26.

SECTION 23-77.4. MEDICAL CENTER MANAGEMENT A. The General Assembly recognizes and finds that the economic viability of the University of Virginia Medical Center, hereafter referred to as the Medical Center, together with the requirement for its specialized management and operation, and the need of the Medical Center to participate in cooperative arrangements reflective of changes in health care delivery, as set forth in § 23-77.3, are dependent upon the ability of the management of the Medical Center to make and implement promptly decisions necessary to conduct the affairs of the Medical Center in an efficient, competitive manner. The General Assembly also recognizes and finds that it is critical to, and in the best interests of, the Commonwealth that the University continue to fulfill its mission of providing quality medical and health sciences education and related research and, through the presence of its Medical Center, continue to provide for the care, treatment, health-related services, and education activities associated with Virginia patients, including indigent and medically indigent patients. Because the General Assembly finds that the ability of the University to fulfill this mission is highly dependent upon revenues derived from providing health care through its Medical Center, and because the General Assembly also finds that the ability of the Medical Center to continue to be a reliable source of such revenues is heavily dependent upon its ability to compete with other providers of health care that are not subject to the requirements of law applicable to agencies of the Commonwealth, the University is hereby authorized to implement the following modifications to the management and operation of the affairs of the Medical Center in order to enhance its economic viability:

B. Capital projects; leases of property; procurement of goods, services and construction.

1. Capital projects.

a. For any Medical Center capital project entirely funded by a nongeneral fund appropriation made by the General Assembly, all post-appropriation review, approval, administrative, and policy and procedure functions performed by the Department of General Services, the Division of Engineering and Buildings, the Department of Planning and Budget and any other agency that supports the functions performed by these departments are hereby delegated to the University, subject to the following stipulations and conditions: (i) the Board of Visitors shall develop and implement an appropriate system of policies, procedures, reviews and approvals for Medical Center capital projects to which this subdivision applies; (ii) the system so adopted shall provide for the review and approval of any Medical Center capital project to which this subdivision applies in order to ensure that, except as provided in clause (iii), the cost of any such capital project does not exceed the sum appropriated therefor and that the project otherwise complies with all requirements of the Code of Virginia

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APPENDIX C

regarding capital projects, excluding only the post-appropriation review, approval, administrative, and policy and procedure functions performed by the Department of General Services, the Division of Engineering and Buildings, the Department of Planning and Budget and any other agency that supports the functions performed by these departments; (iii) the Board of Visitors may, during any fiscal year, approve a transfer of up to a total of 15 percent of the total nongeneral fund appropriation for the Medical Center in order to supplement funds appropriated for a capital project or capital projects of the Medical Center, provided that the Board of Visitors finds that the transfer is necessary to effectuate the original intention of the General Assembly in making the appropriation for the capital project or projects in question; (iv) the University shall report to the Department of General Services on the status of any such capital project prior to commencement of construction of, and at the time of acceptance of, any such capital project; and (v) the University shall ensure that Building Officials and Code Administrators (BOCA) Code and fire safety inspections of any such project are conducted and that such projects are inspected by the State Fire Marshal or his designee prior to certification for building occupancy by the University's assistant state building official to whom such inspection responsibility has been delegated pursuant to § 36-98.1. Nothing in this section shall be deemed to relieve the University of any reporting requirement pursuant to § 2.2-1513. Notwithstanding the foregoing, the terms and structure of any financing of any capital project to which this subdivision applies shall be approved pursuant to § 2.2-2416.

b. No capital project to which this subdivision applies shall be materially increased in size or materially changed in scope beyond the plans and justifications that were the basis for the project's appropriation unless: (i) the Governor determines that such increase in size or change in scope is necessary due to an emergency or (ii) the General Assembly approves the increase or change in a subsequent appropriation for the project. After construction of any such capital project has commenced, no such increase or change may be made during construction unless the conditions in (i) or (ii) have been satisfied.

2. Leases of property.

a. The University shall be exempt from the provisions of § 2.2-1149 and from any rules, regulations and guidelines of the Division of Engineering and Buildings in relation to leases of real property that it enters into on behalf of the Medical Center and, pursuant to policies and procedures adopted by the Board of Visitors, may enter into such leases subject to the following conditions: (i) the lease must be an operating lease and not a capital lease as defined in guidelines established by the Secretary of Finance and Generally Accepted Accounting Principles (GAAP); (ii) the University's decision to enter into such a lease shall be based upon cost, demonstrated need, and compliance with guidelines adopted by the Board of Visitors which direct that competition be sought to the maximum practical degree, that all costs of occupancy be considered, and that the use of the space to be leased actually is necessary and is efficiently planned; (iii) the form of the lease is approved by the Special Assistant Attorney General representing the University; (iv) the lease otherwise meets all requirements of law; (v) the leased property is certified for occupancy by the building official of the political subdivision in which the leased property is located; and (vi) upon entering such leases and upon any subsequent amendment of such leases, the University shall provide copies of all lease documents and any attachments thereto to the Department of General Services.

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b. Notwithstanding the provisions of §§ 2.2-1155 and 23-4.1, but subject to policies and procedures adopted by the Board of Visitors, the University may lease, for a purpose consistent with the mission of the Medical Center and for a term not to exceed 50 years, property in the possession or control of the Medical Center.

c. Notwithstanding the foregoing, the terms and structure of any financing arrangements secured by capital leases or other similar lease financing agreements shall be approved pursuant to § 2.2-2416.

3. Procurement of goods, services and construction.

Contracts awarded by the University in compliance with this section, on behalf of the Medical Center, for the procurement of goods; services, including professional services; construction; and information technology and telecommunications, shall be exempt from (i) the Virginia Public Procurement Act (§ 2.2-4300 et seq.), except as provided below; (ii) the requirements of the Division of Purchases and Supply of the Department of General Services as set forth in Article 3 (§ 2.2-1109 et seq.) of Chapter 11 of Title 2.2; (iii) the requirements of the Division of Engineering and Buildings as set forth in Article 4 (§ 2.2-1129 et seq.) of Chapter 11 of Title 2.2; and (iv) the authority of the Chief Information Officer and the Virginia Information Technologies Agency as set forth in Chapter 20.1 (§ 2.2-2005 et seq.) of Title 2.2 regarding the review and approval of contracts for (a) the construction of Medical Center capital projects and (b) information technology and telecommunications projects; however, the provisions of this subdivision may not be implemented by the University until such time as the Board of Visitors has adopted guidelines generally applicable to the procurement of goods, services, construction and information technology and telecommunications projects by the Medical Center or by the University on behalf of the Medical Center. Such guidelines shall be based upon competitive principles and shall in each instance seek competition to the maximum practical degree. The guidelines shall implement a system of competitive negotiation for professional services; shall prohibit discrimination because of race, religion, color, sex, or national origin of the bidder or offeror in the solicitation or award of contracts; may take into account in all cases the dollar amount of the intended procurement, the term of the anticipated contract, and the likely extent of competition; may implement a prequalification procedure for contractors or products; may include provisions for cooperative procurement arrangements with private health or educational institutions, or with public agencies or institutions of the several states, territories of the United States or the District of Columbia; shall incorporate the prompt payment principles of §§ 2.2-4350 and 2.2-4354; and may implement provisions of law. The following sections of the Virginia Public Procurement Act shall continue to apply to procurements by the Medical Center or by the University on behalf of the Medical Center: §§ 2.2-4311, 2.2-4315, and 2.2-4342 (which section shall not be construed to require compliance with the prequalification application procedures of subsection B of § 2.2-4317), 2.2-4330, 2.2-4333 through 2.2-4341, and 2.2-4367 through 2.2-4377.

C. Subject to such conditions as may be prescribed in the budget bill under § 2.2-1509 as enacted into law by the General Assembly, the State Comptroller shall credit, on a monthly basis, to the nongeneral fund operating cash balances of the University of Virginia Medical Center the imputed interest earned by the investment of such nongeneral fund operating cash balances, including but not limited to those balances derived from patient care revenues, on deposit with the State Treasurer.

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APPENDIX C

Other Code Provisions of Particular Interest to the Board of Visitors

General Provisions Sec. 23-1, et seq. Bonds and other obligations, Issuance of Sec. 23-14, et seq. State and Local Government Conflict of Interests Act Sec. 2.2-3100, et seq. Virginia Freedom of Information Act Sec. 2.2-3700, et seq. Scholarships Sec. 23-31, et seq. Scholarship Assistance Program Sec. 23-38.45, et seq. Tuition, eligibility for in-state Sec. 23-7.4

Formatted: Font: Stempel Garamond

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PRELIMINARY MEETING OF THE BOARD

Monday, May 20, 2013 12:30 – 1:00 p.m.

Board Room, The Rotunda OPEN SESSION A. Pledge of Allegiance (Mr. Diamonstein) B. Remarks by the Rector C. Report by the Student BOV Member D. Report by the President E. Approval of the Full Board Minutes for February 21-22,

2013 Meetings of the Board of Visitors and April 18, 2013 Full Board Meeting (The Rector)

F. Resolution for Addition(s) to the Agenda (The Rector) G. Miller Center Amendments to the Bylaws, Election of

Officers, Election of New Members, and Establishment of a New Staggered Term for Council Members

RESOLUTION TO APPROVE ADDITIONAL AGENDA ITEMS RESOLVED, the Board of Visitors approves the consideration of addenda to the published Agenda.

APPROVAL OF AMENDMENTS TO THE MILLER CENTER BYLAWS, ELECTION OF OFFICERS, ELECTION OF NEW MEMBERS, AND ESTABLISHMENT OF A NEW STAGGERED TERM FOR MILLER CENTER GOVERNING COUNCIL MEMBERS RESOLVED, on the recommendation of the Governing Council of the University of Virginia’s White Burkett Miller Center of Public Affairs (the Governing Council), the Board of Visitors ratifies amendment of the Governing Council bylaws regarding the relationship of the Miller Center and Miller Center Foundation to the University (Article IV, Section 3); increasing maximum Council membership (Article VI, Section 2); establishing staggered member terms and extension of terms for officers and committee chairs (Article VI, Section 3); setting the number of annual meetings (Article VI, Section 7); and endorsing a new committee structure (Article VII); and RESOLVED FURTHER, on recommendation of the Governing Council, the Board of Visitors ratifies the election of the following individuals to the Governing Council for one-year terms: Mortimer Caplin, Eugene V. Fife, Daniel K. Frierson, Joseph R. Gladden Jr., Slade Gorton, John T. Hazel Jr., Frederick P. Hitz, and Edgar J. Roberts Jr.; the following individuals for two-year terms: Michael P. Castine, David R. Goode, Glynn D. Key, Richard R. Kreitler, George W. Logan, Leigh B. Middleditch Jr., J. Ridgely Porter III, and Anne R. Worrell; and the following individuals for three-year terms: Terrence D. Daniels, Norwood H. Davis Jr., Claire W. Gargalli, Judith Richards Hope, Daniel P. Jordan, H. Eugene Lockhart, Alan Murray, Elsie W. Thompson, Jeffrey C. Walker, and Suzanne S. Whitmore. All members will be able to stand for re-election to the Governing Council for one additional three-year term; and

RESOLVED FURTHER, on the recommendation of the Governing Council, the Board of Visitors ratifies the election of the following officers to the Governing Council for one-year terms: Eugene V. Fife as Chair, Joseph R. Gladden as Vice Chair, and Jeffrey L. Chidester (non-Council member) as Secretary.

Amended and Restated 2013

BYLAWS

MILLER CENTER GOVERNING COUNCIL

Article I – Name

Section 1. The name of the organization is to be WHITE BURKETT MILLER CENTER OF PUBLIC AFFAIRS.

Article II – Purpose

Section 1. The purpose of the Center is to conduct studies and investigations of problems at the national level of a political, legal, economic or social nature.

Article III – Policy Guidelines

Section 1. The function of the Center will be to contribute to the solution of major problems at the national level of a political, legal, economic or social nature. It will engage in comprehensive and intensive research into problems such as the role of the Presidency within the federal system and the Administration of Justice. Research projects of this nature should be limited in number and should be long-range. Short-term and transitory projects should be avoided. Projects undertaken should be brought into relationship to the on-going educational process at the University through participation of University faculty and students. It should be a major objective of each project to engage the attention of the public and the national government and thereby to strengthen the possibility of contributing to the solution of the particular problem involved. Section 2. The Center is to provide a non-political forum at which recognized authorities may assemble, consider and discuss matters of national importance and provide facilities for research, teaching and dissemination of knowledge.

Article IV – Relationship to University of Virginia Section 1. The Center is to be an integral part of the University of Virginia but with maximum autonomy within the University system. Section 2. The rector and the president of the University, or their designees, are to be ex officio members of the governing body of the Center. The University is to participate in the selection of its other members and of its director as hereinafter specified.

Section 3. The director of the Center and University officials shall, in connection with the annual budget process, consult as needed concerning the assets and liabilities of the Center and Miller Center Foundation and the income and expenses of the Center and Miller Center Foundation.

Section 4. The Fiscal year of the Center is to be the same as that of the University, namely from July 1st to June 30th of each year. Section 5. Retirement requirements of employees of the Center are to be in accordance with the established policy of the University for its own employees of comparable status, provided that association with the Center does not assure the employee of tenure. Nor shall a tenured faculty member of the University lose tenure because of employment by the Center.

Article V – Funding of Operations

Section 1. The Center is to be supported by endowment funds received from the late Burkett Miller and other sources, as well as by such annual grants as may be received. Section 2. Endowment funds are to become a part of the endowment funds of the University but with principal and income separately identified and available only to the Center for a period of at least one hundred years. Section 3. There is to be no encroachment upon or borrowing against existing assets or future income of the endowment for any purpose during the first one hundred years of its existence. Section 4. Current funds allocated to the Center from its endowment or other source are to be channeled through the fiscal offices of the University and all disbursements of Center funds are to be similarly handled in accordance with directions of the Council. Section 5. The University is to provide, equip, maintain and service for the Center offices and other facilities compatible with the prestige that it must enjoy in order to perform the functions to which it is dedicated.

Article VI – The Council

Section 1. The governing body of the Center is to be a Council composed as hereinafter set out.

Section 2. The maximum membership of the Council is to be nineteen twenty-nine including the rector and president of the University, or their designees, during their respective incumbencies.

Section 3. Linwood Holton shall be a life member of the Council. Other members elected in 2009 and after may serve up to two consecutive three year terms. Initially, as of April, 2013, members of the Council shall be elected to terms of one to three years in order to establish a Council of staggered terms. Provided, however, that officers and committee chairs shall be eligible to complete their terms as officers or chairs and remain members of the Council until their terms as officers or chairs have expired.

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Section 4. Members of Council are to be elected by the Board of Visitors of the University with due regard to geographical representation and national prominence on nomination of Council for staggered terms, provided that a majority of Council be not officially connected with the University. Section 5. The vote of a majority of all members of the Council is to be required for action on its part. Action may be taken without a meeting if a consent in writing setting forth the action so taken is signed or otherwise executed by all members. The secretary will place such writing in the minute book and promptly mail copies thereof to all members. Section 6. The Council will exercise oversight for the studies undertaken by the Center in carrying out the purpose for which it has been formed. Section 7. The annual meeting of the Council is to be held at the principal office of the Center in the spring. One other regular meeting is to be held each year in the fall. In addition, the Council is to meet once annually in the fall and in the winter. A special meeting may be called by the chairman or by the director upon the written request of three members of the Council. At least five days written notice of the time and place of any such meeting of the Council will be given by the secretary.

Section 8. Members of the Council shall notify the Council of any material conflict of

interest they may have in any business or programmatic matter concerning the Center, and shall not participate in deliberations or decisions concerning that matter.

Article VII – Committees

Section 1. The Executive Committee of the Council will perform all duties and exercise all powers of the Council other than amendment of the By-Laws when that body is not in session. Section 2. The Committee is to be composed of the chair of the Council, the vice-chair of the Council, and the president of the University, or designee. Section 3. The secretary of the Council is to record the minutes of Committee meetings and promptly furnish copies thereof to other members of the Council. Section 4. Action may be taken by the committee without a meeting if a consent in writing setting forth the action so taken is signed by all its members. The secretary will place such writing in the minute book of the Council and promptly mail copies thereof to all its members.

Section 5. The Nominating Committee shall be responsible for nominating qualified individuals for service on the Governing Council. In making nominations, the Committee shall identify and consider candidates meeting the standards set forth in Article VI Section 4 above.

Section 6. The Council may establish such other committees as it deems appropriate and

shall prescribe the authority of any such committee and the period of its existence.

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Section 1. The Council shall create five standing committees: Academic Affairs; Public Affairs; Administration, Finance & Audit; Development; and Governance and Nominating. It shall create a Charter for each committee. Section 2. The Chairs of each of the standing committees along with the Chair of the Council, the Vice-Chair of the Council, the President of the University (or the President’s designee), the Rector of the University (or the Rector’s designee) shall constitute an Executive Committee. The Executive Committee shall have and exercise the authority of the Council in the event the Council cannot be convened, provided however that the Executive Committee shall have no authority to approve an amendment to the Articles or these Bylaws, a plan of merger or consolidation, a sale, lease, exchange, mortgage, pledge or other disposition of all, or substantially all, the property and assets of the Center, the voluntary dissolution of the Center, or revocation of voluntary dissolution proceedings. The Executive Committee shall have the authority to appoint, remove, or accept the resignation of the Secretary and any similar subordinate officers of the Council. The Executive Committee shall have the power to authorize the seal of the Center to be affixed to all papers which may require it. Section 3. The secretary of the Council is to record the Minutes of Committee meetings and promptly furnish copies thereof to members of the Council. Section 4. Action may be taken by any Committee without a meeting if a consent in writing setting forth the action to be taken is signed by each of its members. The secretary of the Council shall place such consents in the minute book of the Council and shall promptly mail copies thereof to all of its members. Section 5. In addition to the committees described in this Article VII, the Council may establish such other committees as it deems appropriate and shall prescribe the authority of any such committee and the period of its existence. Section 6. The Council shall review the structure and charter of each committee annually at the Council’s spring meeting.

Article VIII – Officers

Section 1. The officers of the Council are to be a chair, vice-chair and secretary, all to be elected by the Council. The two former are to serve three year terms. The secretary, who need not be a member of the Council, is to serve at its pleasure. Section 2. The chair is to preside at all meetings of the Council and of the Executive Committee and to perform the customary duties of that office. The vice-chair shall preside at meetings in the absence of the chair. The secretary will record the minutes of meetings and perform the customary duties of that office.

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Article IX – Beginning and End of Terms

Section 1. Except as hereby provided or otherwise ordered by Council the terms of officers and of the members of Council and of the Executive Committee are to begin on their election by the Board of Visitors and terminate on the election of their successor.

Article X – Director of Center

Section 1. On nomination by the president of the University with the concurrence of its Board of Visitors the Council will elect a director of the Center to serve at its pleasure, provided that the Council is not obliged to accept the nomination. Section 2. The duties and authority of the director are to be determined by the Council. Section 3. The director is to make reports at least quarterly to the members of Council on the progress of studies undertaken by it, together with a summary of receipts and disbursements preliminary to the detailed statements at the end of the fiscal year.

Article XI – Amendment

Section 1. Subject to the approval of the Board of Visitors of the University as hereinafter provided these bylaws may be amended at anytime by unanimous vote of all members of the Council and by a majority vote at any meeting of the Council if notice of the proposed amendment has been given in the call for the meeting.

Article XII – Approval by Board of Visitors

Section 1. These bylaws are adopted under the broad powers granted to the Council by the University’s Board of Visitors pursuant to agreements between Burkett Miller and the University. It will be assumed for all purposes that the provisions hereof are in conformity with such authority unless and until modified or nullified by the Board within six months after a receipt of a copy hereof. Section 2. Amendments to these bylaws will be subject to approval in the same manner by the Board of Visitors, provided that in the rector’s capacity as an ex officio member of the Council he will have sole responsibility for bringing any such amendment to the attention of the Board.

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Miller Center Governing Council As elected at April 18, 2013 Governing Council Meeting

Member Length of First Term Term Ends Mortimer Caplin 1 year 2014 Eugene V. Fife, Chair 1 year 2014 Daniel K. Frierson 1 year 2014 Joseph R. Gladden, Jr., Vice Chair 1 year 2014 Slade Gorton 1 year 2014 John T. Hazel, Jr. 1 year 2014 Frederick P. Hitz 1 year 2014 Edgar J. Roberts, Jr. 1 year 2014 Michael P. Castine 2 years 2015 David R. Goode 2 years 2015 Glynn D. Key 2 years 2015 Richard R. Kreitler 2 years 2015 George W. Logan 2 years 2015 Leigh B. Middleditch, Jr. 2 years 2015 J. Ridgely Porter III 2 years 2015 Anne R. Worrell 2 years 2015 Terrence D. Daniels 3 years 2016 Norwood H. Davis, Jr. 3 years 2016 Claire W. Gargalli 3 years 2016 Judith Richards Hope 3 years 2016 Daniel P. Jordan 3 years 2016 H. Eugene Lockhart 3 years 2016 Alan Murray 3 years 2016 Elsie W. Thompson 3 years 2016 Jeffrey C. Walker 3 years 2016 Suzanne S. Whitmore 3 years 2016 Helen E. Dragas (Fralin) ex officio A. Linwood Holton, Jr. Lifetime Member Teresa A. Sullivan (Hogan) ex officio

All members can stand for re-election to one additional term beyond the close of their current term

UNIVERSITY OF VIRGINIA BOARD OF VISITORS MEETING OF THE

FINANCE COMMITTEE MAY 20, 2013

FINANCE COMMITTEE

Monday, May 20, 2013 1:30 – 2:45 p.m.

Board Room, The Rotunda

Committee Members: Victoria D. Harker, Chair William H. Goodwin Jr., Vice Chair Frank B. Atkinson A. Macdonald Caputo The Hon. Alan A. Diamonstein Vincent J. Mastracco Jr. Edward D. Miller, M.D.

John L. Nau III Timothy B. Robertson Helen E. Dragas, Ex-officio Daniel M. Meyers, Consulting Member Martin N. Davidson, Faculty Consulting Member

AGENDA PAGE

I. CONSENT AGENDA

A. Amendment to Delegation of Authority in Working 1 Capital Investment Policy

B. Defined Contribution Retirement Plan Amendments 2 C. Capital Items:

1. Project Review, Alderman Road Residence 3 Halls Building #6

2. Project Approval, Facilities Management Shop 4 Support/Office Building

D. Purchase of Land and Improvements Located at 560 6 Ray C. Hunt Drive, Charlottesville, Virginia from the University of Virginia Foundation

II. ACTION ITEMS • 2013-2014 Operating Budget (Mr. Hogan to introduce 8

R. Edward Howell and Colette Sheehy; Messrs. Howell and Hogan and Ms. Sheehy to report) 1. Academic Division 2. The University of Virginia’s College at Wise 3. Medical Center 4. Transitional Care Hospital 5. Pratt Fund 6. Annual Renovation and Infrastructure Plan

III. REPORTS BY THE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER (Mr. Hogan)

A. Executive Vice President’s Remarks 15

PAGE B. University of Virginia Investment Management 16

Company Report on the Long-Term Pool – Market Value and Performance as of March 31, 2013 (Written Report)

C. Retirement Administrative Committee (Written 30 Report)

D. Academic Division Quarterly Financial Report 35 (Written Report)

E. Miscellaneous Financial Reports 1. Capital Campaign 44 2. Endowment by School/Foundation 45 3. Investment of Working Capital 46 4. Quasi-Endowment Actions 47 5. Summer Conference Rates for 2013, 2014 49 and 2015 6. Write-off of Bad Debts for Non-Patient 51

Services

IV. APPENDIX • 2013-2014 Pratt Fund Allocations

UNIVERSITY OF VIRGINIA BOARD OF VISITORS CONSENT AGENDA

I.A. AMENDMENT TO DELEGATION OF AUTHORITY IN WORKING CAPITAL INVESTMENT POLICY: Grants the University’s Executive Vice President and Chief Operating Officer the authority to manage the working capital investment program and to delegate that authority as deemed appropriate.

In September 2011, the Board of Visitors approved the University’s Working Capital Investment Policy. This policy replaced the University’s Short-term Investment Policy (approved in November 2009), which replaced the Current Funds Investment Guidelines approved by the Board in October 2002. The Working Capital Investment Policy delegates investment management authority to the University’s Vice President and Chief Financial Officer. The University does not have a Vice President and Chief Financial Officer at this time and as a result the policy’s delegation authority requires changing.

The University believes it is prudent to amend the policy to authorize the Executive Vice President and Chief Operating Officer to manage working capital investments and further delegate such responsibility in accordance with the policy. A report on the investment of the University’s working capital is included in the Miscellaneous Financial Reports section of this document. ACTION REQUIRED: Approval by the Finance Committee and by the Board of Visitors APPROVAL TO AMEND THE DELEGATION OF AUTHORITY IN THE WORKING CAPITAL INVESTMENT POLICY

WHEREAS, the University’s Working Capital Investment Policy authorizes the Vice President and Chief Financial Officer to manage, and further delegate the management of, investments made under the policy; and


RESOLVED, the Board of Visitors authorizes the Executive Vice President and Chief Operating Officer to manage investments under the Working Capital Investment Policy and further delegate or revoke such responsibility under the program.

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I.B. DEFINED CONTRIBUTION RETIREMENT PLAN AMENDMENTS: Amend the Optional Retirement Plan of the University of Virginia allowing employees to receive benefits from the Plan any time on or after the day of separation from service. Amend the Optional Retirement Plan of the UVa Medical Center granting employees service credits for the vesting period requirement from the Albemarle Arthritis Associates (AAA), LLP, effective May 26, 2013.

The University provides academic faculty and managerial and professional staff a choice of two retirement plans – a defined benefit plan (VRS) sponsored by the Commonwealth and a defined contribution plan (ORP) sponsored by the University. The University also sponsors a separate defined contribution plan, Medical Center’s Optional Retirement Plan (MCRP) for employees of the University of Virginia Medical Center.

The ORP is being amended to provide greater flexibility to separated employees in taking a distribution from the Plan. The amendment removes the restriction that prohibits a distribution prior to 60 days from date of separation of service. This aligns the University policy with the VRS requirement to qualify for retiree health benefits.

The MCRP is being amended to incorporate employees of AAA.

Under the MCRP vesting schedule, a participant hired on or after September 30, 2002 is not 100% vested until completing two years in the plan. Until that time, the participant is 50% vested for employer contributions. On behalf of the Medical Center, the University intends to grant employees who became eligible employees as a result of the Medical Center’s acquisition of AAA, effective May 26, 2013, the right to apply months of service performed on behalf of AAA, toward fulfilling the vesting period requirement. To operationalize this grant of service credit, the University must formally amend the benefit plan.

ACTION REQUIRED: Approval by the Finance Committee and by the Board of Visitors AMENDMENTS TO DEFINED CONTRIBUTION RETIREMENT PLANS RESOLVED, the Optional Retirement Plan for Employees of the University of Virginia is amended such that a separated employee may receive benefits from the Plan any time on or after the day he or she separates from service; and

RESOLVED FURTHER, the Optional Retirement Plan for Employees of the UVa Medical Center is amended to grant employees who became

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eligible employees as a result of the Medical Center’s acquisition of Albemarle Arthritis Associates(AAA), LLP, effective May 26, 2013, the right to apply months of service performed on behalf of AAA toward fulfilling the vesting period requirement. I.C.1. PROJECT REVIEW, ALDERMAN ROAD RESIDENCE HALLS BUILDING #6: Approves the revised financial plan for the Alderman Road Residence Halls Building #6.

In accordance with the policy adopted by the Board of Visitors in October 2004, all capital project budget increases in excess of 10% require the approval of both the Finance and Buildings and Grounds Committees. The construction of Alderman Road Residence Halls Building #6 was approved in April 2011 for $30.0 million.

In 2006, Housing and Residence Life embarked on a multi-phase building project to remove and replace the 1960s era residence halls in the Alderman Road area. Originally estimated to cost $205 million, the six residence halls that have been completed or will be complete by this summer have a projected total cost of $121.7 million. That is a savings of more than $83 million, a cost savings that resulted from favorable market conditions and accelerated procurement. Originally Buildings #5 and #6 were to be constructed in a single phase with an approved authorization of $73 million. To take advantage of the favorable construction market, the administration, with approval from the Board of Visitors, decided to accelerate the construction of Building #5 along with Buildings #3 and #4. The three residence halls are scheduled to come on line this summer. The project budget for Building #5 and #6 was set at $30 million each. Final cost of Building #5 (63,759 gsf and 201 beds) is expected to be $28 million. The plan for Building #6 included build out of the ground floor for Housing and Residence Life office space. Initial concept design revealed that in order to realize the needed number of beds, program space, and accommodate the offices on the ground level, the building would have to be six stories which was deemed too high for the site. Redesign efforts resulted in a separate two story office wing and an additional 26 beds for a total of 211 beds. Because of site conditions, a slightly larger footprint to accommodate the additional beds, several rooms large enough to provide for triples, and one added apartment, the cost estimate has been revised to $38 million. In

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addition we have lost some economies of scale because we are constructing a single building in this phase. The Buildings and Grounds Committee approved the design for Building #6 at its November 2012 meeting. The building is five stories, 74,898 gsf, and will include 211 beds, common space, and the office wing. Housing and Residence Life staff currently located in 24,400 square feet distributed across five buildings in the McCormick Road housing area will be consolidated at this site making them more accessible to students.

A budget increase of $8.0 million to fund the expanded scope (from 56,898 gsf to 74,898 gsf) is requested. The incremental cost will be funded from housing reserves ($1.8 million) and increased debt ($6.2 million) taking the full project funding plan to $8.4 million from housing reserves and $29.6 million in debt. The debt will be paid with housing revenues and is included in Housing and Residence Life’s 10-year pro forma. ACTION REQUIRED: Approval by the Buildings and Grounds Committee, the Finance Committee, and by the Board of Visitors APPROVAL OF PROJECT BUDGET AND SCOPE REVIEW, ALDERMAN ROAD RESIDENCE HALLS BUILDING #6 RESOLVED, an $8.0 million increase to the Alderman Road Residence Halls Building #6 to a revised budget range of $36.0 - $38.0 million, and an 18,000 gross square feet increase in scope to 74,898 gross square feet, is approved. RESOLVED FURTHER, the financial plan for the Alderman Road Residence Halls Building #6 is complete and approved. I.C.2. PROJECT APPROVAL, FACILITIES MANAGEMENT SHOP SUPPORT/ OFFICE BUILDING: Approves the addition of the Facilities Management Shop Support/Office Building to the Major Capital Projects program, at a cost of $5-6 million, and the financial plan.

The Facilities Management Shop Support/Office Building is a two-story, 14,000 gsf building to the west of the Leake Building at 575 Alderman Road. The project will modernize work space for many of Facilities Management (FM) in-house services, will allow consolidation of certain shop activities, and allow for the demolition of substandard trailers currently used to house these activities, as well as alleviate the need to lease space off-

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Grounds. FM will vacate 11,635 gsf in temporary metal buildings and in off-Grounds rental space so that the net additional square footage is only 2,365 gsf. The University has added over one million gsf of space since 2009 requiring the addition of about 100 employees in Facilities Management to maintain, clean, and service the new buildings. While many of these employees work in the field, there is a need for permanent support space that enables the staff to most effectively serve their customers. The cost is estimated at $6 million, with $5 million to be financed over a 20-year term. Net operating and maintenance costs of $75,800 will be paid from FM operating funds.

The building will sit on what is now about 4,000 sf of garage storage space that currently requires significant structural and waterproofing repairs on an annual basis. The condition of the garages is such that continued repair is not a wise investment and they should be demolished. Because the garages are integrated with retaining systems for the road and parking lot above, their removal requires construction of a new permanent retaining system capable of supporting vehicles. The cost to replace the garages is about $750,000 of which $400,000 is related to site work and the retaining system.

The need to replace the garages affords an opportunity to optimize the site and achieve programmatic improvements by adding another floor that will allow FM to vacate and remove temporary structures, as well as vacate leased space. Exclusive of the exceptional site conditions this project presents, construction cost per gsf is estimated at $255 with total project costs of $355/gsf.

ACTION REQUIRED: Approval by the Buildings and Grounds Committee, the Finance Committee, and by the Board of Visitors APPROVAL OF ADDITION TO THE UNIVERSITY’S MAJOR CAPITAL PROJECTS PLAN – FACILITIES MANAGEMENT SHOP SUPPORT/OFFICE BUILDING RESOLVED, the Facilities Management Shop Support/Office Building at an estimated project cost of $5-6 million is added to the Major Capital Projects Program. RESOLVED FURTHER, the financial plan for the Facilities Management Shop Support/Office Building is complete and approved.

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I.D. PURCHASE OF LAND AND IMPROVEMENTS LOCATED AT 560 RAY C. HUNT DRIVE, CHARLOTTESVILLE, VIRGINIA FROM THE UNIVERSITY OF VIRGINIA FOUNDATION: Approves the purchase of land and improvements located at 560 Ray C. Hunt Drive, Charlottesville, Virginia from the University of Virginia Foundation.

In keeping with the recently approved Health System strategic plan, the Medical School is expanding its capacity to perform translational research. In 2007, the Ivy Foundation gave the school $25 million for the Ivy Translational Research Building. Rather than construct a new building, the school would like to purchase, from the University of Virginia Foundation, an existing building (560 Ray C. Hunt Drive) in the Fontaine Research Park whose major tenant will vacate in the next 18 months.

The 72,000 sf building is located on 3.47 acres and includes 259 parking spaces with additional parking available on adjacent property in the Park. The purchase price of $15.85 million is based on a recent appraisal for the land and improvements. At its April 2013 meeting, the Board of Visitors approved the addition of this project to the University’s Major Capital Projects Program. The office space will require renovation to make it suitable for research, which will also be funded from the gift.

The central location, the ability to put an existing facility into operation on a short timeline, and the potential for research synergies with existing operations in the Fontaine Research Park support the recommended purchase of 560 Ray C. Hunt Drive from the University of Virginia Foundation. ACTION REQUIRED: Approval by the Finance Committee and by the Board of Visitors APPROVAL TO PURCHASE 560 RAY C. HUNT DRIVE, CHARLOTTESVILLE, VIRGINIA FROM THE UNIVERSITY OF VIRGINIA FOUNDATION WHEREAS, the Board of Visitors finds it to be in the best interest of the University of Virginia to purchase from the University of Virginia Foundation (the “Foundation”) land and improvements thereon located at 560 Ray C. Hunt Drive, Charlottesville, Virginia (the “Property”) at a purchase price not to exceed $15,850,000;


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RESOLVED FURTHER, all prior acts performed by the Executive

Vice President and Chief Operating Officer, and other officers and agents of the University, in connection with such property acquisition, are in all respects approved, ratified, and confirmed.

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UNIVERSITY OF VIRGINIA BOARD OF VISITORS AGENDA ITEM SUMMARY

BOARD MEETING: May 20, 2013 COMMITTEE: Finance AGENDA ITEM: II. 2013-2014 Operating Budget BACKGROUND: At its May meeting, the Board of Visitors considers the proposed operating budgets for the Academic Division, The University of Virginia's College at Wise, and the Medical Center. At its April meeting, the Board of Visitors approved tuition, mandatory fees, housing, and dining rates for 2013-2014, which comprise significant revenue sources for the operating budget. During this fiscal year, the Board of Visitors has heard reports on the University’s budget requests to the state and the preliminary budget assumptions for the 2013-2014 operating budget. Additionally, the Board of Visitors was informed of the Governor’s proposed amendments to the 2012-2014 biennial budget. On February 23, 2013, the Joint Conference Committee of the General Assembly released a compromise budget. After review and amendment by the Governor, the final budget should be approved by the General Assembly in May. The Board has also approved tuition and fee rates for 2013-14, which form a significant proportion of operating revenues. DISCUSSION: The 2013-2014 expenditure budget proposal for all divisions of the University totals $2.7 billion, a 2.4% increase compared with the revised budget of the previous fiscal year. Of this amount, $1.4 billion relates to the Academic Division, $1.3 billion to the Medical Center, and $38.6 million to The University of Virginia's College at Wise.

Academic Division

The proposed Academic Division operating expenditure budget will decrease by 2.5% to $1.41 billion. The decrease in the operating budget is driven by a reduction of expenditures on sponsored research awards and the availability of one-time funds from the previous fiscal year (2011-2012). In 2013-2014, net tuition and fees (32.9%) provides the greatest proportion of the operating budget, followed by grants and contracts (20.6%), sales and services and other, including auxiliary sales and services, investment income and other miscellaneous revenues (13.0%), endowment distributions (11.1%), state general funds (10.2%), and gifts (9.5%). The remaining 2.7% of the expenditure budget will

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be funded from operating cash reserves and accumulated investment balances.

Personnel costs comprise approximately 69.1% of educational

and general expenditures and 58.5% of total operating expenditures in the Academic Division. The proposed budget provides for an average 4.75% merit-based faculty salary pool, which incorporates the 3% increase authorized in the state budget. The state authorized a 2% across-the-board salary increase for classified staff employees who meet expectations on their most recent performance evaluation together with a compression adjustment of $65 per year of service. For University staff we translated the equivalent classified staff increase into a 3% pool to be awarded based on merit.

The 2013-2014 budget development cycle for the Academic

Division incorporated elements that are expected to be principles in the new internal financial model:

• Budget assumptions were developed with greater

collaboration between administrative leadership and deans; • Revenue from undergraduate enrollment growth is flowing to

the schools that generate it, aligning incentives as the University grows;

• Tuition revenue associated with 1.0 percent of the base undergraduate tuition increase will be distributed to schools, providing resources to meet high-priority operating needs;

• New funding provided in the 2013-2014 budget is clearly tied to the University’s strategic priorities;

• Budget discussions were robust and inclusive, contributing to a more transparent and engaged budget process and greater awareness of the University’s strategic direction and financial capacity;

• Effective stewardship of the University’s resources led to academic and administrative units looking within their organizations to reallocate funds towards highest priority needs.

In addition to addressing compensation for faculty and staff,

the budget provides investments to respond to the goals of the Virginia Higher Education Opportunity Act of 2011, including funding for undergraduate enrollment growth approved by the Board in February 2013; ongoing investment in AccessUVa to attract and retain a high-quality, diverse student body; and the establishment of a Strategic Investment Fund to support initiatives emerging

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from the strategic planning process and provide the flexibility to seize new opportunities that advance the University’s academic mission and strategy.

The University of Virginia’s College at Wise

The proposed operating expenditure budget for The University

of Virginia's College at Wise will increase by $1.7 million, or 4.6%, in 2013-2014. State general funds will decrease by 1.0% as compared to the revised 2012-2013 budget, which included general funds provided for one-time, state-authorized bonuses during 2012-2013. Net tuition revenues are increasing by 5.3%, and grants and contracts will decrease by 4.7%. Sales and services, including auxiliary sales and services revenues, will increase by 15.8% from increased housing rents, increased meal plan rates as a result of implementing new meal plan options for students, additional bookstore sales, and additional athletic conference revenue and gate receipts. Key strategic priorities addressed through this budget cycle are increasing student retention, improving graduation rates, and focusing on Science, Technology, Engineering, Math, and Health (STEM-H) offerings.

Medical Center

The Medical Center operating expenditure budget is proposed to increase by $97.3 million, or 8.7%, to $1.22 billion during 2013-2014. The operating margin is expected to be $59.1 million or 4.6%.

The budget presentation includes a proposal to increase

hospital room rates and ancillary service charges between 7.0 and 9.9% and to enhance personnel compensation packages. The pay-for-performance pool has been established at $8.0 million, which includes the impact on benefit costs and is based on a 3.0% salary adjustment with an October implementation date. Other salary adjustments, such as market and compensation design adjustments, total $4.0 million, including the impact on benefit costs. The Transitional Care Hospital’s operating expenditure ($19.8 million in 2013-2014) and capital ($0.6 million in 2013-14) budgets are consolidated with the Medical Center’s budget.

For the Medical Center, the 2013-2014 operating plan was

developed through a priority-based budget process to align resource allocations with Medical Center strategies and goals to achieve the Health System strategic planning goal to become a top decile academic medical center based on quality measures. The operating plan was developed while considering the challenges of

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providing patient care, teaching, and research services in an increasingly changing health care industry. The full impact of the Affordable Care Act will not be realized for a number of years; however, many of its provisions have already been implemented. The result will be decreased reimbursements from government payors and an industry-wide erosion of pricing power with private payors. At the same time, costs associated with providing quality patient care will continue to have upward pressure due to increases in medical supply, pharmaceutical, and medical device expenses, growing administrative burden, and a shortage of health care workers. These changes require proactive fiscal planning now to ensure meeting the mission of the Health System in the future.

From the operating margin and from the capital reinvestment

plan, the Medical Center has set aside a total of $31.0 million for the Strategic Investment Pool to be used to fund future proposals that best align the allocation of resources with Medical Center strategies and goals, including $11.8 million for capital initiatives.

For a full discussion of the budget proposal, as well as

comparative revenue and expenditure data for the Academic Division, The College at Wise, and the Medical Center, please refer to the budget summary, which accompanies this book.

Pratt Fund

In April 1976, the University received funds, designated in the will of John Lee Pratt, to be used "to supplement salaries of the professors of the Departments of Biology, Chemistry, Mathematics and Physics, to purchase equipment for these departments as suggested by the heads of the departments and approved by the President and the Board of Visitors, and to provide for scholarships in these departments for outstanding students." Mr. Pratt’s will provides further that these funds could be used "to support research in the School of Medicine and to provide scholarships for medical students." The will stipulates that the Pratt endowment reverts to Washington and Lee University if the University of Virginia does not comply with the provisions of the will. The original Pratt endowment has been split into two equal endowments, with 50% of the original principal assigned to the College of Arts & Sciences and the remaining 50% assigned to the School of Medicine. The market value of the total Pratt endowment is $128.5 million as of March 31, 2013. In 2013-2014, a distribution of

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$3.44 million from the College of Arts & Sciences endowment and $3.8 million from the School of Medicine endowment, for a total of $7.24 million, is recommended. Additionally, the College of Arts & Sciences plans to use in 2013-2014 approximately $246,000 in funds that were allocated in 2012-2013 but will remain uncommitted by the end of the fiscal year. Similarly, the School of Medicine plans to use in 2013-2014 approximately $428,000 in funds that were allocated in 2012-2013 but will remain uncommitted by the end of the fiscal year. Committees in each of the schools developed the proposal to spend the distribution, which is included as an appendix to this document. Each dean, the Vice President for Research, the Executive Vice President and Provost, and the President are required to indicate their support of these projects. The table below shows aggregate allocations; the attachment describes the specific allocations.

2013-2014 Pratt Fund Allocation

Annual Renovation and Infrastructure Plan

Under Restructuring, the Board of Visitors has delegated authority to approve all capital projects (acquisitions, capital leases, or new construction or renovation projects costing more than $2 million and impacting more than 5,000 gross square feet) funded with non-general funds. To facilitate the consideration of certain projects with no exterior impact, the Board of Visitors considers the Annual Renovation and Infrastructure Plan (ARIP) each year.

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In the 2013-2014 Budget Summary, the Academic Division and the Medical Center will present a detailed list of renovation and infrastructure projects expected to cost between $2 million and $5 million, to be funded with non-general fund cash (no debt), and expected to be initiated within the next fiscal year. This shorter, annual approval process allows these smaller projects to be planned in a more appropriate timeline based on the nature of the project. For example, renovating a lab for a new scientist is a project for which the need will arise during recruitment, and which must be completed before the scientist joins the faculty.

The Academic Division’s ARIP Plan totals $18.1 million to

$22.5 million and addresses Gooch and Dillard Residence Hall balcony, air handling and fire detection improvements, John Paul Jones Arena water intrusion, and several utility upgrade projects. All of the projects will be funded from maintenance cash reserves. The Medical Center’s 2013-2014 ARIP Plan includes $6.7 million to $7.8 million in various renovation projects and infrastructure upgrades. All projects will be funded from Medical Center operating funds. Additionally, the Medical Center is authorized to substitute a new project costing between $2 million and $5 million for a project included on the approved ARIP, provided that the total capital budget as approved by the Board is not exceeded and that a report is provided at each Board meeting listing the changes made to the original project list. ACTION REQUIRED: Approval by the Finance Committee and by the Board of Visitors APPROVAL OF THE 2013-2014 OPERATING BUDGET AND ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE ACADEMIC DIVISION RESOLVED, the 2013-2014 Operating Budget and Annual Renovation and Infrastructure Plan for the Academic Division is approved, as recommended by the President and the Chief Operating Officer. RESOLVED FURTHER, the University will use the approved operating budget to update the four-year plan, Financing Academic Excellence, to roll forward future multi-year planning.

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APPROVAL OF THE 2013-2014 OPERATING BUDGET FOR THE UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE RESOLVED, the 2013-2014 Operating Budget for The University of Virginia’s College at Wise is approved as recommended by the President and the Chief Operating Officer. APPROVAL OF THE 2013-2014 OPERATING AND CAPITAL BUDGETS AND ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE UNIVERSITY OF VIRGINIA MEDICAL CENTER RESOLVED, the 2013-2014 Operating and Capital Budget and the Annual Renovation and Infrastructure Plan for the University of Virginia Medical Center is approved as recommended by the President, the Chief Operating Officer, and the Medical Center Operating Board. APPROVAL OF THE 2013-2014 OPERATING AND CAPITAL BUDGETS FOR THE UNIVERSITY OF VIRGINIA TRANSITIONAL CARE HOSPITAL

RESOLVED, the 2013-2014 Operating and Capital Budget for the University of Virginia Transitional Care Hospital, presented as a component of the Medical Center Operating Budget, is approved as recommended by the President, Chief Operating Officer, and the Medical Center Operating Board. APPROVAL OF PRATT FUND DISTRIBUTION FOR 2013-2014

RESOLVED, the budget for the expenditure of funds from the Estate of John Lee Pratt is approved to supplement appropriations made by the Commonwealth of Virginia for the School of Medicine and the Departments of Biology, Chemistry, Mathematics, and Physics in the College of Arts and Sciences. Departmental allocations, not to exceed $7,240,000 for 2013-2014, are suggested by the department chairs and recommended by the dean of each school; the disbursement of each allotment will be authorized by the Executive Vice President and Provost. To the extent the annual income from the endowment is not adequate to meet the recommended distribution, the principal of the endowment will be disinvested to provide funds for the approved budgets.

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BOARD MEETING: May 20, 2013 COMMITTEE: Finance AGENDA ITEM: III.A. Executive Vice President’s Remarks

ACTION REQUIRED: None BACKGROUND: The Executive Vice President and Chief Operating Officer will inform the Board of recent events that do not require formal action, but of which it should be made aware.

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BOARD MEETING: May 20, 2013 COMMITTEE: Finance AGENDA ITEM: III.B. University of Virginia Investment

Management Company Report on the Long-Term Pool – Market Value and Performance as of March 31, 2013

ACTION REQUIRED: None BACKGROUND: The University of Virginia Investment Management Company (UVIMCO) provides investment management services to the Rector and Visitors of the University of Virginia and its related Foundations. Assets deposited in UVIMCO are held in the custody and control of UVIMCO on behalf of the University and Foundations within a long-term, co-mingled investment pool.

UVIMCO’s primary objective in managing the pool is to maximize long-term real return commensurate with the risk tolerance of the University. To achieve this objective, UVIMCO actively manages the pool in an attempt to achieve returns that consistently exceed the returns on a passively managed benchmark with similar asset allocation and risk. Recognizing that the University must attract outstanding students, faculty, and staff and provide them appropriate resources, UVIMCO attempts to manage pool assets to provide long-term real returns that compare favorably with the returns of endowments of other outstanding schools. UVIMCO does not set spending rates. UVIMCO communicates the Pool’s risk and return estimates to the University and Foundations for their consideration in setting spending rates. DISCUSSION: The March 31, 2013, report follows.

Quarter-End March 2013

SUMMARY

The following commentary provides an update on the current market environment as well as the asset allocation, performance (unaudited), risk management, and liquidity position of UVIMCO’s Long Term Pool as of and for periods ending March 31, 2013. The 5.1% gain recorded by the Long Term Pool this calendar quarter is high, even beating the 4.7% increase in our policy benchmark

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during a market rally. Our fiscal year-to-date return on the Long Term Pool is 10.8% versus the fiscal year-to-date policy portfolio return of 12.6%. While we report on short-term performance, we encourage all of our investors to focus most on longer-term performance. Over the 20-year period ending March 31, 2013, the Pool’s annualized return was 11.9%, exceeding the policy benchmark return by 440 basis points (bps). We continue to position the Long Term Pool defensively versus the policy portfolio benchmark, with less market risk.

Each spring, we estimate the future long-term return of the Long Term Pool by adding the nominal expected return of our policy portfolio together with expected alpha from manager performance and portfolio tilts. This year, we adjusted our long-term (10- year) return forecast down from 8.0% to 7.5%. The decrease in this estimate is partially due to the rise in equity prices outpacing real earnings growth in 2012, and the continued tightening of global credit spreads and sustained low yields. Each asset class included in the Policy Portfolio provides a lower long-term expected return today than it did one year ago.

We make a few observations about the 7.5% estimate for long-term returns. First, assuming a 5% spending rate and a 2.5% rate of inflation, the 7.5% expected return will allow us to preserve the real spending power of the endowment. However, we project no real growth over the next 10 years. A second observation is that active management will continue to be needed in order for the Long Term Pool to keep pace with inflation over the next decade. Finally, although our analysis underlying the 7.5% expected return on the Long Term Pool is sound, there is much uncertainty surrounding the inputs and this final estimate. Increased competition could hamper UVIMCO’s ability to deliver the same level of alpha as we have in the past. In addition, a further run in asset prices in excess of real earnings growth poses a meaningful risk to the endowment’s assets. As always, the UVIMCO Board and staff is working hard to develop an appropriate response to either of these scenarios. MARKET ENVIRONMENT

On the back of a very strong 2012, the market continued its ascent with the S&P 500 up 10.6% for the first quarter of 2013. With Treasuries continuing to offer zero yield, investors looked for yield in any form. Inflows into equities grew, with investors focusing on companies that pay dividends. In addition to the encouraging February employment numbers, U.S. economic data looked positive with housing starts, building permits, industrial

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production, and durable goods orders all up this quarter. These positive economic signs led to a small sell off in Treasuries with the 10-year Treasury ending at 1.87% compared with 1.78% at year end. All in, the U.S. market performed better than most other countries. The MSCI World Index, representing the developed markets, was up 7.9% and the MSCI Emerging Markets Index was down -1.6%.

Although the first quarter was filled with optimism, there are plenty of reasons for investors to remain cautious. The federal budget sequester went into effect on March 1st and it is feared that these cuts could have a meaningful impact on U.S. economic growth. The European markets spent the quarter focused on the banking situation in Cyprus, which ultimately required a $10 billion bailout from the European Union (EU) and International Monetary Fund (IMF). The banks were required to close for two weeks, and government limits were placed on accounts to prevent a run on the banks. Bailout alternatives were considered and ultimately Cyprus Popular (Laiki), the country’s second largest bank, had to close. Depositors, many of them Russian, may be required to pay a tax as high as 40% on their deposits and although Cyprus is a small economy within Europe, this tax is unsettling for depositors in other EU countries as well.

In Asia, the Bank of Japan restated its target of achieving 2% inflation and showed it is very committed to purchasing government bonds and increasing its monetary base target. The Japanese stock market responded to this continued easing, with the MSCI Japan Index rising close to 12% in the first quarter and the yen continuing its devaluation.

Investors are focused on the new global market environment and trying to determine how best to navigate within it. In his investment outlook piece titled “A Man in the Mirror” (April 2013), Bill Gross discusses some of the market questions that need to be asked but are hard to answer:

My point is this: PIMCO’s epoch, Berkshire Hathaway’s epoch, Peter Lynch’s epoch, all occurred or have occurred within an epoch of credit expansion – a period where those that reached for carry, that sold volatility, that tilted towards yield and more credit risk, or that were sheltered either structurally or reputationally from withdrawals and delevering (Buffett) that clipped competitors at just the wrong time – succeeded. Yet all of these epochs were perhaps just that – epochs. What if an epoch changes? What if perpetual credit expansion and its fertilization of asset prices and returns are substantially altered? What if zero-bound interest

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rates define the end of a total return epoch that began in the 1970s, accelerated in 1981 and has come to a mathematical dead-end for bonds in 2012/2013 and commonsensically for other conjoined asset classes as well? What if a future epoch favors lower than index carry or continual bouts of 2008 Lehman-esque volatility, or encompasses a period of global geopolitical confrontation with a quest for scarce and scarcer resources such as oil, water, or simply food as suggested by Jeremy Grantham? What if the effects of global “climate change or perhaps aging demographics,” substantially alter the rather fertile petri dish of capitalistic expansion and endorsement? What if quantitative easing policies eventually collapse instead of elevate asset prices? What if there is a future that demands that an investor – a seemingly great investor – change course, or at least learn new tricks?

At UVIMCO, we continue to ask these questions to our managers and to ourselves. We seek motivated and talented managers who can navigate through these changes, and we are working to adjust the portfolio accordingly. Asset Allocation

Our policy portfolio continues to be an allocation of 60% global public equity, 10% global public real estate and 30% global investment grade fixed income. This portfolio is designed to provide long-term growth from equities, an inflation hedge from real assets and a deflation hedge from fixed income.

The Long Term Pool’s actual allocation as of March 31, 2013 is 64.5% to equity managers, 14.2% to real asset managers and 21.3% to fixed income (including marketable alternatives, credit, and cash). Looking through to our managers’ underlying investments, the Long Term Pool has a 52.6% allocation to equities, 15.5% allocation to real assets and 31.9% allocation to fixed income (including credit, bonds and cash) as of March 31, 2013. Therefore, the Long Term Pool continues to be positioned defensively versus the policy portfolio benchmark, with less equity market risk. PERFORMANCE

The Long Term Pool returned 5.1% in the quarter ended March 31, 2013 versus the policy benchmark gain of 4.7%. While we are pleased by this level of relative outperformance, it is not our goal to outperform the passive benchmark over short time periods such as one quarter or year. Fiscal year-to-date, the Long Term Pool has returned 10.8% versus 12.6% earned by the policy

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benchmark. As expected, Pool performance has lagged the benchmark in the face of rapidly rising equity markets. EQUITIES Public Equity

The public equity portfolio returned 7.1% for the quarter versus 6.6% for its benchmark, the MSCI All Country World Equity Index (“MSCI ACWI”). The public equity portfolio returned 20.9% for the fiscal year versus 17.5% for the benchmark over the same nine-month period. This outperformance was broad-based and occurred despite our tilt towards emerging markets and the relative underperformance of those regions. The MSCI Emerging Markets Index lost 0.4% for the quarter. Although the emerging markets tilt was a headwind for the portfolio, the tilt toward quality low-beta stocks has continued to contribute to the program’s performance. Investor demand for defensive stocks has been significant over the past couple of years.

Over the trailing three-, five-, and 10-year time periods, UVIMCO’s public equity portfolio has returned 17.1%, 7.8%, and 16.7% annually, outperforming the MSCI ACWI on an annualized basis by 870, 520, and 680 basis points, respectively. The long-term outperformance is attributed to a mix of tilts (e.g. the current tilt to quality) and the security selection of our managers. While the magnitude of our public equity program’s outperformance is unlikely to continue, we remain excited about the portfolio. Our managers conduct deep fundamental research on companies and themes and build concentrated portfolios of public equities. Our managers take a long-term approach to investing, which gives them an edge in an increasingly short-term and macro-focused investing environment. This advantage is magnified by investing in less efficient markets, including emerging markets and small cap companies. Long/Short Equity

The long/short equity portfolio returned 8.2% for the quarter versus 6.6% for the MSCI ACWI and 5.1% for the Dow Jones Credit Suisse Long/Short Equity Index. The long/short equity portfolio returned 13.8% for the fiscal year versus 17.5% the MSCI ACWI and 11.3% for the Dow Jones Credit Suisse Long/Short Equity Index over the same nine-month period. It is unusual for the portfolio to outperform the MSCI ACWI during such a strong equity market. The quarterly performance was impressive for a program with a net exposure and beta to global equities of 0.4. Security selection

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on the long and short side continues to contribute to our managers’ returns.

We continue to focus on partnering with managers with differentiated stock selection skills, an unwavering commitment to the short side, and sensible portfolio construction and risk management. Private Equity

The private equity portfolio returned 4.6% for the quarter versus 6.6% for its benchmark, the MSCI ACWI. For the fiscal year-to-date, the portfolio increased by 8.4% versus a 17.5% increase in the index. On a stand-alone basis, the buyout portfolio returned 4.2% for the quarter and 8.6% for the fiscal year to date. Venture capital returned 6.2% for the quarter and 7.2% so far in the fiscal year. Most of our private equity managers provide conservative and lagged valuation updates so when the public markets are firing on all cylinders, as they have been, we expect our short-term returns to trail the public market index. Longer term performance for the private equity portfolio has been stellar with a return of 12.6% for the 10-year period ending March 31, 2013, while the MSCI ACWI returned 9.9%. Broken out between buyout and venture, the former returned 15% and the latter returned 6% for the 10-year period.

According to S&P Capital IQ, at the end of 2012, non-financial companies in the S&P 500 held roughly $1.1 trillion in cash or short-term cash equivalent investments, all of which have fueled merger and acquisition activity so far in 2013. The same source notes that at least twelve $1 billion-plus transactions had been announced by the middle of February, which included the buyout of H.J. Heinz for $23 billion by Warren Buffett and 3G Capital, the $16.7 billion deal for 49% of NBC Universal by Comcast, and the continuing saga of Dell’s $24.4 billion plan to take itself private. Up through mid-March, Thomson Reuters reported that the weekly average for M&A activity was $37.2 billion, with an expectation that the robust appetite for deals would continue into the next few quarters.

As is typical for the first quarter of a calendar year, Initial Public Offering (“IPO”) activity was sparse. Only eight VC-backed companies went public on U.S stock exchanges during the quarter, according to Thomsen Reuters and the National Venture Capital Association (the “NVCA”). Compared to the last quarter of 2012, the number of IPOs was the same, but there was a 58% decline in the dollars raised for Q1 2013. IPO activity in the first

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quarter of a calendar year generally takes a back seat to year-end reporting and planning for the coming year, but the beginning of 2013 also had to contend with various tax and political issues, e.g., the much talked about “fiscal cliff,” and a word new to most investors’ vocabularies: “sequestration.” All of these factors impacted the market for exits, but Thomson Reuters and the NVCA have indicated that “they expect stronger volume in the second and third quarters.”

The private equity portfolio continued to be cash flow positive for the quarter with cash distributions of $57 million compared to $18 million in capital calls. For the fiscal year, cash distributions have totaled $187 million versus capital calls of $96 million, resulting in a net cash flow of $91 million through the nine months of the fiscal year. REAL ASSETS Real Estate

The real estate portfolio returned 1.7% for the first quarter of 2013 versus 6.2% for the weighted benchmark of publicly-traded U.S. and international real estate securities. This strong performance for the benchmark was led by Asian securities and followed by U.S. securities. Fiscal year-to-date, the real estate portfolio generated a return of 2.8%, underperforming the public real estate benchmark by 11.7%. As we have explained in prior commentaries, our private real estate investments are quite different than the underlying holdings of our publicly traded real estate benchmark. However, we expect our real estate investment to outperform the public benchmark over long time periods. Although we have not met this goal, we believe our current real estate portfolio is sound and has latent value.

The Federal Reserve’s aggressive monetary policy has lowered yields on the most liquid, high quality assets over the past year or so. This capital has started to make its way to lower quality markets and assets over the past six months, with the multifamily sector continuing to be a favorite for institutional investors. With vacancies low and rents climbing, construction has rebounded to 260,000 annualized units as of January 2013. While this level is up from the low of 50,000 units in December 2010, it is still well below the 20-year and 40-year averages of 395,000 and 429,000 units, respectively. Positive movement in the office sector may be seen as the economy has continued to add jobs, which should reduce office vacancy given that new construction in the office space is almost non-existent. A potential dampener to the jobs

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growth is the shadow vacancy that currently exists in office space, as well as the more efficient utilization of space going forward.

Overall, the commercial real estate sector is in various stages of stabilization and recovery. Real Treasury yields remain depressed which will continue to support U.S. REIT pricing, with REIT investors willing to take value erosion risk in exchange for secure dividends. Internationally, Asia and Australia REIT markets have seen strong returns as Europe continues to lag amid macro-economic concerns. Fiscal year-to-date, U.S. real estate securities underperformed the global basket of publicly-traded real estate securities by nearly 850 basis points.

Over the past nine months, we funded capital calls of $77 million and received distributions of $56 million, bringing the allocation to 8.4% of the Long Term Pool. During the quarter, the real estate portfolio had $24 million in calls and $10 million in distributions. Staff approved commitments of $55 million to two existing managers during the first quarter. Pending satisfactory legal review, this will bring real estate unfunded commitments to $172 million. We are also negotiating the purchase of a small secondary interest in an existing manager relationship. Resources

The resources portfolio generated a return of 3.6% and 7.3% for the quarter and fiscal year-to-date, respectively. This compares to quarterly and fiscal year to date returns of 0.5% and 8.5%, respectively, for the Goldman Sachs Commodity Index, a broad-based index of commodities. Publicly traded natural resource equities represented by the S&P North America Natural Resources Equity Index returned 7.2% for the quarter and 16.4% fiscal year-to-date. It is typical for UVIMCO’s resources portfolio to lag the performance of publicly traded natural resources during times of broad-based market rallies. The managers in our resource portfolio primarily invest in private, illiquid companies and tend to conservatively value these positions relative to their ultimate sale price. Further, valuations provided by our managers are generally one to two quarters behind the quarter-end date, which complicates comparisons to public benchmarks. UVIMCO’s formal real assets benchmark, the blended MSCI Real Estate Index, returned 6.2% in the first quarter and 14.5% fiscal year to date.

The WTI Crude Oil price finished the quarter at $97.49, just shy of the quarterly highs in January and equal to levels seen in

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the fall of 2012. The spread between WTI and Brent contracted meaningfully towards the end of the quarter as some of the domestic supply bottlenecks began to ease. The NYMEX Henry Hub Natural Gas spot price ended the quarter at $4.03, an increase of 12% since the beginning of the year and in-line with the highest prices of 2012. Prices are still meaningfully below long-term averages as a result of the prolific increase in drilling activity and consequent supply increase made possible by technological advances. Colder temperatures and a modest decrease in domestic rig counts have contributed to the price increase seen in the first quarter of 2013. Our managers are well positioned to benefit from any increase in natural gas prices as they have been very active in acquiring and de-risking conventional and unconventional domestic gas plays. That said, they have also proven their ability to generate returns in declining gas price environments, as evidenced by the resource portfolio’s 3- and 5-year returns of 29.1% and 18.4%, respectively. Our managers continue to focus on acquiring assets in those basins with highly attractive returns to capital.

During the first quarter, our resource managers called $7 million of capital and distributed $17 million. For the fiscal year, cash distributions have totaled $58 million versus capital calls of $36 million, resulting in a net cash flow of $22 million. FIXED INCOME AND MARKETABLE ALTERNATIVES Marketable Alternatives and Credit

For the first quarter of 2013, the marketable alternatives and credit portfolio gained 4.6% versus a 2.9% return on the Barclays High Yield Index. Our credit managers recorded relatively strong performance in January, partially due to certain Lehman claims being realized in that month. Overall, credit risk assets continued to appreciate this quarter and our managers in liquid credit benefited from this rally. Our investments in two credit managers were fully realized as the managers liquidated the remaining positions in these drawdown vehicles.

During the first quarter, our credit managers, who use a private equity fund structure, called $4 million of capital and distributed $13 million. For the fiscal year, cash distributions have totaled $62 million versus capital calls of $6 million, resulting in a net cash flow of $56 million.

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Bonds and Cash

Our bonds and cash continue to increase due in part to distributions coming in from many of our private investments. Both the domestic buyout and resource portfolios have returned sizable amounts of capital to us so far this year. The net cash inflows for the nine months ended March 31, 2013 were $140 million including distributions, redemptions, and new investments.

We continue to manage bonds and cash as a source of liquidity. Our cash portfolio is invested in U.S. Treasury bills and notes with maturities less than one year and U.S. Treasury guaranteed Repurchase Agreements with U.S. domiciled counterparties. The duration of the cash portfolio as of March 31, 2013 was 0.20 years. Our government bond portfolio has also been in short-term U.S. Treasury notes and bonds but with maturities under three years. The average duration of this portfolio as of quarter end was 0.88 years. Returns continue to be insignificant given the zero-interest rate policy of the Federal Reserve Bank. The cash and bond portfolios returned 0% and 0.1% for the quarter, and 0.1% and 0.2% for the fiscal year. The Barclays U.S. Treasury Bond Index (duration of 5.3 years) returned -0.2% and 0.3% for the quarter and fiscal year. RISK MANAGEMENT

Investors may be willing to bear risk if they are adequately compensated with future higher returns. At UVIMCO, we are willing to bear certain risks, but others must be eliminated if we are unable to absorb the downside losses or if we do not earn a sufficient risk premium from assuming those risks. We consider three broad portfolio risks when managing the Long Term Pool – market risk, manager risk, and liquidity risk – and evaluate these factors relative to the risk tolerance of the Long Term Pool shareholders. Market Risk

The largest risk factor present in the Long Term Pool is equity market risk. A common definition of market risk is the standard deviation or volatility of a portfolio’s return. Volatility provides a useful proxy for market risk if returns are normally distributed. However, it is clear that both the broad market as well as individual investment strategies are not normally distributed, but rather are subject to a much higher probability of negative “tail” events. Since investment returns

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are subject to “tail risk”, it is useful to complement the standard deviation statistic with an estimate of drawdown risk.

We manage market risk in the Long Term Pool by diversifying across three broad asset classes: equity, fixed income, and real assets. Our objective is to maintain estimated market risk in the Long Term Pool that is less than or equal to the estimated market risk of the policy portfolio. We look at volatility, worst 1 % drawdown and beta to global equities. Our current estimate of the volatility of the Long Term Pool returns is 11% versus 12% for the policy portfolio. The lowest one-percentile annual drawdown on the Long Term Pool is estimated to be -26%, less than the drawdown estimate of -30% on the policy portfolio. We estimate the beta to global equities for the Long Term Pool is 0.65 versus 0.68 for the policy portfolio. Manager Risk

The Long Term Pool invests with more than one hundred external managers. We seek to maintain a portfolio of managers that generates sufficient returns to compensate us for bearing both market risk and the additional risk inherent in working with individual managers. Manager risk includes tracking error or active bets away from the benchmark, operational or business risks, lack of transparency, and leverage. UVIMCO mitigates manager risk by diversification and employing extensive and ongoing due diligence to assess both the investment and operational aspects of our external fund managers. Our Investment Policy Statement ensures a minimum level of diversification by limiting our exposure to any single manager to 7.5% of the Long Term Pool. As of March 31, 2013, our largest manager exposure was 5.4% of the Long Term Pool, well within the 7.5% maximum.

Over time, UVIMCO has been well compensated for assuming manager risk. Attribution analyses suggest that manager selection is the largest contributor to the Long Term Pool’s long-term outperformance versus the policy benchmark and peers. Liquidity Risk

At UVIMCO, we define liquidity risk as an inability to meet any of the following four primary liquidity requirements: (i) withdrawals by the University and foundation investors, (ii) the excess of capital calls over expected capital distributions from private funds, (iii) the need to rebalance exposures following a market decline, and (iv) the ability to deploy cash opportunistically as new investment opportunities arise. We

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manage this risk by maintaining a portfolio of Treasury bills and notes, maintaining sufficient liquidity with our public equity and hedge fund managers, and managing the pace of commitments to private investments.

Given our four primary liquidity requirements, we believe that an appropriate target for liquidity is to have 10% of the Long Term Pool invested in assets that are safe and highly liquid, and at least 30% of the Pool should be available for conversion to cash in any 12-month period. The total of bonds and cash as of March 31, 2013 was 12.4%. Over time, we continue to expect the sum of the liquid U.S. Treasury bond and cash portfolios to vary between 8% and 12% of the Long Term Pool. Although this is a drag on returns (especially in a zero interest rate environment), we believe it provides insurance against future turbulent markets and will allow us to fund attractive investments that will more than make up for the return drag.

The percentage of the Long Term Pool that can be turned into cash has remained relatively constant. As of March 31, 2013, 37% of the Long Term Pool could be turned to cash within one quarter, and 51% of the Pool could be turned into cash within one year. Our unfunded commitments have remained relatively constant as well. Unfunded private investment commitments ended the quarter at $895 million or 15% of the Long Term Pool. Our target level of unfunded commitments is 15% and the maximum is 25%. We continue to manage our unfunded commitments carefully, investing in drawdown funds only when the expected returns are compelling enough to warrant the assumption of the associated liquidity risk.

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BOARD MEETING: May 20, 2013 COMMITTEE: Finance AGENDA ITEM: III.C. Retirement Administrative Committee ACTION REQUIRED: None BACKGROUND: The University is the plan sponsor of a number of defined contribution retirement plans, including the Optional Retirement Plan for Employees of the University of Virginia and the Optional Retirement Plan for Employees of the University of Virginia Medical Center.

At its June 2, 2007 meeting, the Finance Committee of the Board of Visitors approved a revised Retirement Program Policy. The revised policy established the role of the Finance Committee of the Board of Visitors to provide oversight of the retirement plans and to report annually to the Board.

On May 10, 2013, Ms. Victoria Harker, as Finance Committee Chair, and Mr. Alan Diamonstein, Finance Committee member, met with the Executive Vice President and Chief Operating Officer and representatives of the Retirement Administrative Committee to review the Plan’s annual performance and to discuss the overall program from participant and administrative perspectives. Minutes of that meeting follow.

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Minutes

University of Virginia Board of Visitors Finance Committee Appointees on Retirement

Administrative Committee May 10, 2013, 1:30 p.m.

Madison Hall President’s Conference Room Board of Visitors Finance Committee Appointees (via phone): Victoria Harker and The Honorable Alan Diamonstein Also in Attendance: Pat Hogan, Executive Vice President and Chief Operating Officer; Susan Carkeek, Vice President and Chief Human Resource Officer; Barry Schmitt, CAPTRUST Financial Advisor (via phone); Anne Broccoli, Director of Benefits; Megan Lowe, Assistant Vice President and Chief of Staff to the Executive Vice President and Chief Operating Officer, Jim Matteo, University Treasurer and Chair of the Retirement Administrative Committee. There were six agenda items for this meeting: the background of the Retirement Administrative Committee, the annual review of fund performance, excess revenue credit, Roth 403(b) implementation, future initiatives under consideration, and plan amendments requiring Board of Visitor approval. I. Background of the Retirement Administrative Committee

The University is the plan sponsor of a number of defined contribution retirement plans, the two largest being (1) the Optional Retirement Plan for Employees of the University of Virginia and (2) the Optional Retirement Plan for Employees of the University of Virginia Medical Center.

In June of 2007, the Finance Committee of the Board of

Visitors approved a revised Retirement Program Policy. The revised policy established the role of the Finance Committee of the Board of Visitors to provide oversight of the retirement plans and to report annually to the Board. The policy also clarified the role of the University’s Retirement Administrative Committee (RAC) to establish procedures and review investment performance of the various funds offered. The RAC had been chaired by the Vice President and Chief Financial Officer. With that position eliminated, James Matteo, University Treasurer, has been appointed chair. Susan Carkeek, Vice President and Chief Human Resource Officer, is the retirement program administrator.

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In April of 2008, the Finance Committee of the Board of Visitors approved new Investment Procedures, creating a menu of investment options for plan participants that includes a full range of funds, regardless of which vendor a participant elects. The new Investment Procedures also changed the role of CAPTRUST (a third party engaged to provide analysis of investment performance of the funds) from consultant to advisor thus shifting fund selection and monitoring responsibility to CAPTRUST. Since the approval of the policy and procedures, the Finance Committee has carried out its oversight responsibility through its Chair and one additional Finance Committee member. The Chair and appointee meet at least annually with the RAC to review investment performance and other relevant issues. The Chair then reports back to the full Finance Committee and Board, typically at the spring meeting. II. December 31st, 2012 Annual Performance Review

Barry Schmitt provided an overview of the annual report on fund performance, reminding the appointees that the RAC meets quarterly with CAPTRUST to monitor fund performance and once per year each of the vendors is invited to the RAC to present on their participant activity and fund performance. A detailed of the report of fund performance was provided. III. Excess Revenue Credit Revenue credits have been offered by both Fidelity (one-time credit) and TIAA-CREF (ongoing revenue credits). These credits are the result of CAPTRUST and UVA being able to negotiate more favorable terms which resulted in revenue credits of approximately $115,000 from Fidelity (one-time credit) and approximately $300,000-$330,000 from TIAA-CREF (ongoing). For each vendor a Revenue Credit Account will be set up and funded with excess revenue generated by the plan. RAC approved the use of the revenue credits and is considering how best to utilize these credits. Examples of how these credits may be used include paying reasonable and necessary expenses for the plan, crediting back to participants, and offering additional employee retirement investment education programs. IV. Roth 403(b) Implementation

In response to increasing employee requests, The University added a Roth option in the 403(b), accepting post-tax employee contributions, in January 2013. Unlike Roth IRA’s there is no income limit on a Roth 403(b) so regardless of income, our employees can elect to defer post-tax amounts up to the IRS current 403(b) limits of $17,500 or $22,000, based on age.

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To date, there are 203 employees enrolled with a Roth contribution and the total value of these investments currently is $103,092. V. Future Initiatives Under Consideration:

The following initiatives are under consideration by the RAC.

Fund Line-up Consolidation: It has been several years since a significant change has been made to the fund selections with each vendor. In 2008, the RAC (with approval from the BOV) better aligned the investments across all three vendor platforms (Fidelity, TIAA-CREF, and Vanguard). This process eliminated overlap of funds, created a “best in class” fund structure, and “froze” assets of funds that were not performing to the goals and objectives stated within the Investment Policy. In 2011, after a comprehensive review, Vanguard was eliminated as a record-keeper, while, at the same time, all current Vanguard mutual funds were migrated to and accessible on the Fidelity platform. Currently, the RAC monitors 41 fund options plus the target date fund options. However, the RAC is considering further fund consolidation to continue our strategy in offering “best in class” fund offerings on each of the remaining two platforms (Fidelity and TIAA-CREF).

Closing/Mapping Funds: Generally, if a particular fund no longer meets policy guidelines, it is “closed” for future contributions and replaced with a similar type of fund. The RAC does not monitor the performance of closed funds. Should the fund line-up be significantly changed, consideration would also be given to mapping funds from the closed fund to the replacement fund. Historically, the RAC has not “mapped” funds once a fund is closed, but a change in this strategy is under consideration.

Introduction of a Brokerage Window: If the fund line-up is consolidated, and certain funds removed, a brokerage window would provide employees continued and expanded choice. The brokerage window gives the employee the ability to direct trading within a brokerage’s offering through the retirement plan. Employees would have the option to set up a "window", which would allow them to trade most listed mutual funds. While the freedom of a brokerage window can be too much for some investors to consider, it is a viable option for those who understand the increased risks/rewards of individual fund selection and asset allocation.

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Move towards a Group contract with TIAA: Currently employees with TIAA-CREF have “individual contracts” where assets are held by participants without University control. While the mutual funds held by TIAA-CREF have University control, the variable and fixed annuities are under these individual contracts. A long term strategy under review is adopting “group contracts”, so future contributions would be in a group program under university control. This will provide the University with greater flexibility to both leverage assets for more competitive rates and to “close and map” assets if that direction is approved.

403(b) Oversight: Federal regulations adopted in 2009 for 403(b) plans required many institutions, including UVa, to look more closely into the overall operation and structure of supplemental retirement programs and the efficiency (or inefficiency) within these programs. While the RAC has explicit responsibility for oversight of the retirement plans, even with the 2009 requirements, it is not required to have the same level of fiduciary oversight of the 403(b) Plan. UVa is now considering whether or not to further expand our fiduciary oversight for these plans. One of the driving forces would be to eliminate disparate fund offerings between the ORP and the 403(b), thereby reducing participant confusion. VI. Two Amendments to the Plans

Two plan amendments are proposed for Board approval as consent agenda items of the Finance Committee. The first is a revision to the Optional Retirement Plan for Employees of the University of Virginia to provide flexibility to separated employees in taking a distribution from the plan. The current Plan prohibits a distribution prior to 60 days from the date of separation. The amendment will permit a separated employee to take a distribution at any time after separation from service. This aligns the University policy with the VRS requirement to qualify for retiree health benefits.

The second requested amendment is to the Medical Center’s Optional Retirement Plan to grant service time for the purposes of vesting to employees of Albemarle Arthritis Associates (AAA), as a result of the recent acquisition by the Medical Center. This same provision was extended the Virginia Ambulatory Surgery, Inc., Culpeper Hospital Home Health, and Hematology Oncology Patient Enterprises, P.C. (H.O.P.E.) when they were acquired.

The meeting was adjourned at 2:05 p.m.

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BOARD MEETING: May 20, 2013 COMMITTEE: Finance AGENDA ITEM: III.D. Academic Division Quarterly

Financial Report

ACTION REQUIRED: None

BACKGROUND: To provide a holistic view of the current financial status of the University’s Academic Division, the financial report for the quarter ended March 31, 2013 includes:

• statement of net assets compared to prior year; • statement of revenues, expenses, and changes in net

assets compared to prior year; and • operating sources and uses, budget versus actual results

to date. DISCUSSION: Statement of Net Assets – This statement, on page 37, provides Academic Division’s net assets as of March 31, 2013 as compared to June 30, 2012. The unaudited statement is developed based on Generally Accepted Accounting Principles (GAAP). The unaudited statements include material adjustments and accruals in order to be reasonably accurate, but are not on a full accrual basis. Net assets are up $404.0 million or 7.9 percent due to cash collected from tuition billings (in advance of fourth quarter expenses) and a 10.8 percent year-to-date return on investments. The $39.5 million in receivables are primarily comprised of billing for sponsored research ($30.2 million) and student charges ($5.4 million). Past due receivables over 120 days are only $3.0 million, just under 7 percent and well within the Commonwealth of Virginia’s management standard of 10 percent. Endowment investments are up nearly $270 million, on the strength of 10.8 percent returns so far in FY13. Further information on the endowment’s performance this year is included in the written report from the University of Virginia Investment Management Company (UVIMCO) on page 16. Student loan receivables, depending on payment schedules, are included in accounts payable and long-term debt. Student loan

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receivables of $39.9 million include $20.3 million through the Federal Perkins Loan Program, $1.0 million through the Federal Nursing Student Loan Program, and $18.6 million through loan programs managed by the University using philanthropy given for this purpose. The default rates by University students on the federal loan programs are below required thresholds: 7 percent for Perkins versus the federal requirement of 15 percent and 2.1 percent for nursing versus the 5 percent federal threshold. Collectively, the default rate on University managed loan programs stands at 2.3 percent.

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As of 3/31/13 As of 6/30/12ASSETS

Current AssetsCash and short term investments 520,963$ 426,223$ Receivables (accounts, notes, other) 39,532 44,980 Inventories, prepaids and other 283 299

Total current assets 560,778 471,502

Noncurrent AssetsEndowment and other investments 3,951,118 3,681,778 Receivables (pledges and notes) 21,679 37,673 Capital assets, net 2,130,250 2,044,295 Receivable from Medical Center - 466 Receivable from SWVHEC & agencies 6,748 -

Total noncurrent assets 6,109,795 5,764,212

Total assets 6,670,573$ 6,235,714$

LIABILITIESCurrent Liabilities

Accounts payable and accrued liabilities 25,723$ 14,192$ Deferred revenues and deposits 149,183 183,625 Commercial Paper 204,593 127,463 Internal loan deposits held for UVA Wise 13,106 7,550 Deposits held for SWVHEC - 2,161

Total current liabilities 392,605 334,991

Noncurrent LiabilitiesLong-term debt 732,019 759,582 Other long-term liabilities 500 136

Total noncurrent liabilities 732,519 759,718

Total liabilities 1,125,123$ 1,094,709$

NET ASSETSInvested in capital assets, net of related debt 1,246,430$ 1,238,034$ Restricted:

Nonexpendable 495,187 485,956 Expendable 2,373,016 2,236,393

Unrestricted 1,430,818 1,180,622 Total net assets 5,545,450$ 5,141,005$

Total liabilities & net assets 6,670,573$ 6,235,714$

UNIVERSITY OF VIRGINIA - Academic Division OnlyStatement of Net Assets

(in 000s)

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Statement of Revenues, Expenses, and Changes in Net Assets (SRECNA) – Shown on page 40, this statement outlines the Academic Division’s revenues, expenses, and change in net assets as of March 31, 2013 as compared to the same period last year. It is developed based on Generally Accepted Accounting Principles (GAAP) but is unaudited. At March 31st, net assets are up $404.0 million or 7.9 percent due mostly to the 10.8 percent performance gain on investments. Compared to the prior year operating revenue and expenses are up 4.0 percent and 2.4 percent, respectively, because of the one-time employee bonus awarded in November 2012. Without the bonus revenue and expenses would show only a slight increase of just under 1 percent. Operating Revenues: Net student tuition and fees are up about 5.7 percent, related to undergraduate enrollment growth and increases in tuition and fees approved by the Board of Visitors in April 2012. Grants and contracts are down 4.5 percent overall, but with a varied mix by source. As anticipated, federally funded grants are down significantly, despite funding for the one-time November 2012 3 percent bonus. The overall decline of $19 million in federal funding includes the bonus; if this one-time funding were excluded, federal grants would have been down about $21 million. State/local grants are up by $4 million, mostly due to a large subcontract. Grants from private industry and foundations are flat. State appropriations have increased $13 million or 10 percent due to $5.3 million related to employee benefits and the one-time November 2012 three percent bonus and additional appropriations in support of the Higher Education Opportunity Act of 2009. Spendable gifts are up $18.0 million or 20.6 percent. A few large gifts from the foundations account for much of the increase. Investment income is $326.4, reflecting the 10.8 percent return on the UVIMCO Long Term Pool through March 31, 2013. Additions to permanent endowment have declined by $20 million to $8.1 million. There is only one gift exceeding $1 million so far in FY13, whereas there were five gifts totaling $22 million as of March 31, 2012.

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Operating Expenses: Operating expenses were up $24 million or 2.4 percent as of March 31, 2013 compared to March 31, 2012, most of which is attributable to the 3 percent bonus paid to employees in November 2012. Without it, operating expenditures would have been up only $9 million or just about 1 percent.

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UNIVERSITY OF VIRGINIA - Academic Division OnlyStatement of Revenues, Expenses, and Changes in Net Assets

Nine Months Ended 3/31/13

Nine Months Ended 3/31/12

OPERATING REVENUES AND EXPENSES:Operating Revenues

Student tuition and fees, net 439,988$ 416,195$ Grants and contracts (federal, state, nongovernmental) 237,550 248,752State appropriations (includes ARRA state stabilization) 140,103 127,111Gifts 105,552 87,545Sales and services of educational departments 12,483 14,679Auxiliary enterprises revenues, net 92,317 93,342Pell grants 7,773 8,198Total operating revenues 1,035,765 995,823

Operating ExpensesInstruction 255,640 241,563Research 219,314 217,843Public service 25,308 25,295Academic support 108,374 104,993Student services 29,096 29,020Institutional support 52,738 54,393Operation of plant 69,574 68,528Student aid, net 66,286 63,091Auxiliary 93,380 93,384Depreciation 76,353 72,082Other 12,869 14,670Total operating expenses 1,008,932 984,862

Operating revenues less operating expenses 26,833 10,961

NONOPERATING REVENUES AND EXPENSESNonoperating Revenues

Capital appropriations, grants and gifts 58,345 34,488Investment income (loss) 326,440 71,383Additions to permanent endowments 8,053 28,056Other 11,438 16,707Total nonoperating revenues (losses) 404,275 150,634

Nonoperating ExpensesInterest on capital asset related debt, net 24,664 21,766Loss on capital assets (gain) 1,581 799Other 418 699Total nonoperating expenses 26,664 23,264

Nonoperating revenues less nonoperating expenses (losses) 377,612 127,370

Total Revenues 1,440,040 1,146,457Total Expenses 1,035,595 1,008,126

Increase (decrease) in net assets 404,445 138,331

NET ASSETSNet assets - July 1 (beginning) 5,141,005 4,977,684

Net assets - March 31 (ending) 5,545,450$ 5,116,015$

(in 000s)

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Operating Sources and Uses, Budget vs. Actual – Shown on page 43, this report reviews Academic Division’s budgeted sources and uses versus actual results through March 31, 2013 to highlight performance versus the approved plan. For reference, the annual budget is also presented. The cash-based operating plan differs from the Generally Accepted Accounting Principles (GAAP) financial statements in the following ways: • External debt service, UVa Health Plan activity, and endowment

investment performance are excluded, while repayments of debt to the internal bank and the expendable endowment distribution are included.

• Depreciation is not recognized and most equipment purchases are reported as a use of funds, not capitalized.

• Only gifts received and available for the operating plan are included. Pledges, non-cash gifts, gifts transferred to the endowment or capital program, and gifts held at foundations are excluded.

• The operating plan nets financial aid funded from tuition from

gross tuition, but does not net financial aid funded from other sources (gifts, endowments, and grants) from tuition.

• The operating plan reflects mandatory fees collected for

auxiliaries and internal revenues collected from internal departments as auxiliary revenue.

Overall Results: Through March 31, 2013, actual net sources exceeded uses by $93.9 million, higher than the $35.3 million fiscal year to date budget. Actual available sources of funds for the Academic Division as of March 31, 2013 were $1,150.2 million, right on target versus the planned sources of $1,147.0 million. Similarly, uses of available funds through March 31st are right on target, totaling $1,056.2 million, which is 5 percent below planned uses of $1,111.7 million.

• While it appears as though expenditures for undergraduate

financial aid are $1.7 million over the annual budget as of March 31, adjustments between financial aid sources during the fourth quarter will bring the charges against tuition back within budget.

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• Academic support is $8.9 million or 7.5 percent below the quarterly budget. While it is expected that there will be some increased spending of these funds in the fourth quarter, the majority of this amount represents reserves which will be held for future use.

• General administration is $9.2 million or 14.0 percent below the quarterly budget. The quarterly budgets are determined based on historical spending which had been higher through the third quarter of the preceding year primarily due to the impact of higher than budgeted Virginia Retirement System costs paid to the state. Additionally, administrative reserves will be held for future use.

• Operation & maintenance of physical plant is $25.9 million or

29.1% below the quarterly budget primarily as a result of lower utility costs and utility improvement spending. This trend is expected to continue through year end. Additionally, an estimated $5.5 million has been reserved for building improvements, the anticipated additional payroll scheduled for FY16, and as an offset to the anticipated decline in future fee collections related to the projected decrease in capital project volume.

• Scholarships, fellowships, & other is $8.9 million or 8.8%

below the quarterly budget. The timing of the expected increase in scholarships/fellowships from private gifts will result in costs crossing fiscal years.

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2012-13 Revised Budget

2012-13 Quarterly

Budget

Actuals Through

3/31/2013Actuals Over

(Under) BudgetActuals as a %

of BudgetSources of Available Funds

Tuition and Fees Undergraduate 248,900$ 247,000$ 248,468$ 1,468$ 0.6% Less: Tuition to financial aid (31,069) (31,058) (32,742)$ (1,684) 5.4%

Net Undergraduate 217,831 215,942 215,726 (216) -0.1%

Graduate 35,353 36,000 35,336 (664) -1.8%Less: Tuition to financial aid (22,552) (22,000) (20,928) 1,072 -4.9%Net Graduate 12,801 14,000 14,408 408 2.9%

Professional (Law, Darden, McIntire & SEAS Exec.) 100,416 98,000 103,303 5,303 5.4%Less: Tuition to financial aid (6,870) (6,600) (7,088) (488) 7.4%Net Professional 93,546 91,400 96,215 4,815 5.3%

School of Medicine 27,128 26,000 27,145 1,145 4.4%Less: Tuition to financial aid (510) (535) (510) 25 -4.7%Net School of Medicine 26,618 25,465 26,635 1,170 4.6%

Other 97,017 97,000 89,735 (7,265) -7.5%Less: Tuition to financial aid (1,145) (500) (539) (39) 7.8%Net Other 95,872 96,500 89,196 (7,304) -7.6%

Total Net Tuition & Fees 446,668 443,307 442,180 (1,127) -0.3%

State Appropriations 140,140 139,000 140,103 1,103 0.8%Grants & Contracts 237,367 195,000 191,644 (3,356) -1.7%Facilities & Administrative Cost Recoveries 65,400 52,000 51,810 (190) -0.4%Endowment Distribution & Fee 155,045 85,000 87,899 2,899 3.4%Gifts-Via Affiliated Foundations 102,485 67,577 71,155 3,578 5.3%Expendable Gifts 33,890 14,100 13,374 (726) -5.1%Sales, Investment & Other 169,921 151,000 151,999 999 0.7%Operating Cash Balances 105,025 - - - n/a

Total Sources of Available Funds 1,455,940$ 1,146,984$ 1,150,164$ 3,180$ 0.3%

Uses of Available FundsDirect Instruction 347,466$ 260,600$ 258,633$ (1,967)$ -0.8%Research & Public Service 319,740 243,000 244,311 1,311 0.5%Academic Support 158,478 118,900 109,943 (8,957) -7.5%Student Services 43,204 30,200 29,744 (456) -1.5%General Administration 88,755 65,700 56,527 (9,173) -14.0%Operation & Maintenance of Physical Plant 118,960 89,200 63,267 (25,933) -29.1%Scholarships, Fellowships, & Other 104,675 101,500 92,584 (8,916) -8.8%Auxiliary Enterprises 152,695 120,600 120,335 (265) -0.2%Internal Debt Service/Transfers 115,241 82,000 80,885 (1,115) -1.4%

Total Uses of Available Funds 1,449,214$ 1,111,700$ 1,056,229$ (55,471)$ -5.0%

Net Sources in Excess of Uses 6,727$ 35,284$ 93,935$ 58,651$ 166.2%

University of VirginiaAcademic Division

Comparative Statement of Sources and Uses of Funds, Year to Dateas of 03/31/2013 (in thousands)

43

MISCELLANEOUS FINANCIAL REPORTS Finance Committee


May 20, 2013

UNIVERSITY OF VIRGINIA CAPITAL CAMPAIGN SUMMARY

as of 3/31/13

All Units Expendable Endowment Total Gifts and Pledge Payments 1,293,729,948 580,960,545 1,874,690,493 Outstanding Pledge Balances 151,436,897 57,032,971 208,469,868 Deferred Gifts 96,804,527 35,536,845 132,341,372 Private Grants 249,707,077 0 249,707,077 Gifts in Kind 82,797,435 2,433,528 85,230,963 Gift and Pledge Total 1,874,952,849 675,486,924 2,550,439,773 Future Support 302,921,938 83,811,894 386,733,832 Campaign Total 2,177,874,787 759,298,818 2,937,173,605 Additional Amounts To Be Raised (1) -503,002,849 952,563,076 449,560,227

Total 1,371,950,000 1,628,050,000 3,000,000,000

Rector & Visitors Gift Accounts Only Expendable Endowment Total Gifts and Pledge Payments 533,296,273 309,339,003 842,635,276 Outstanding Pledge Balances 75,852,664 112,655,635 188,508,299 Deferred Gifts 62,164,277 19,220,117 81,384,394 Private Grants 0 0 0 Gifts in Kind 59,011,415 11,184 59,022,599 Gift and Pledge Total 730,324,629 441,225,939 1,171,550,568 Future Support 168,674,462 22,697,659 191,372,121 Campaign Total 898,999,091 463,923,598 1,362,922,689 Additional Amounts To Be Raised TBD TBD TBD

Total 898,999,091 463,923,598 1,362,922,689

Rector & Visitors Unrestricted Giving Gifts and Pledge Payments 10,913,905 0 10,913,905 Deferred Gifts 200,000 0 200,000 Outstanding Pledge Balances 57,560 0 57,560

Total 11,171,465 0 11,171,465

(1) Excludes future or revocable support

Source: Office of Development and Public Affairs Date: May 3, 2013

44


SOURCE: Financial Administration DATE: April 30, 2013

Rector and Visitors Funds

Related Foundation Funds Invested by

UVIMCO

Alumni Association Funds

Invested by UVIMCO

Related Foundation Funds Invested by

Direction of Foundation Board Total

The University of Virginia Medical School and related foundations 856,459$ 43,206$ 9,687$ -$ 909,352$ The College of Arts and Sciences and related foundations 388,119 66,852 11,709 429 467,109 The University of Virginia Law School and related foundation 47,177 236,912 - 106,773 390,862 Darden School and related foundation 119,399 225,239 - 7,865 352,503 The McIntire School of Commerce and related foundation 82,298 - 40,213 621 123,132 Batten School of Leadership and Public Policy 118,682 - - - 118,682 School of Engineering and related foundation 100,302 9,524 - 1,728 111,554 University of Virginia's College at Wise and related foundation 48,229 6,891 2,511 2,531 60,162 Graduate School of Arts and Sciences 56,908 - - - 56,908 School of Nursing 46,635 - 2,439 - 49,074 Curry School of Education and related foundation 14,238 9,149 - 1,552 24,939 School of Architecture and related foundation 18,472 2,102 425 584 21,583 School of Continuing and Professional Studies 2,032 - 52 - 2,084

University of Virginia Medical Center and related foundations 456,530 61,144 5,063 26,727 ** 549,464 Centrally Managed University Scholarships 185,453 - - - 185,453 Athletics and related foundation 43,085 64,317 442 289 108,133 Alumni Association - - 73,961 29,976 103,937 Provost 97,052 - - - 97,052 University of Virginia Foundation and related entities - 66,455 - 207 66,662 Miller Center and related foundation 55,271 9,996 - - 65,267 Alumni Board of Trustees - 56,645 - - 56,645 University Libraries 56,050 - 36 - 56,086

University - Unrestricted but designated 332,981 - - - 332,981 University - Unrestricted Quasi and True Endowment 175,139 - - - 175,139 University - Unrestricted Other 162,167 - - - 162,167

All Other 231,468 231,624 53,185 * 12,104 528,381

3,694,146$ 1,090,056$ 199,723$ 191,386$ 5,175,311$

*Includes funds on deposit for other areas/schools not individually listed.**Excludes approximately $60.7 million of board designated pension funds.

Endowment/Long Term Investments for UVa and Related FoundationsMarch 31, 2013

Unaudited

(in thousands)

45


WORKING CAPITAL INVESTMENTS AND LIQUIDITY

AS OF MARCH 31, 2013

Daily Weekly > Weekly Total Cash-Academic $21 $21Cash-Medica l Ctr $60 $60ST Operating Inv. $376 $192 $568LT Operating Inv. $990 $990Cash & Cash Equiva lents $458 $192 $990 $1,640Credit Lines $250 $250

Tota l $708 $192 $990 $1,890% of Tota l 37.5% 10.2% 52.4% 100.0%

Liquid Balances

Cash 4.98%

US Treasury Bond 10.04%

Federal Agency 15.09%

CP 0.94%

Repo Agreement 8.29%

PFM Fund 0.30%

UVIMCO LTP 60.36%

Working Capital Investment Allocation

46

UNIVERSITY OF VIRGINIA QUASI-ENDOWMENT ACTIONS -- JANUARY 1, 2013 THROUGH MARCH 31, 2013

AmountAdditions from GiftsAccess UVA Scholarships 90,000$ Darden, Barbara B. Endowed Scholarship 55,000 Denomme, Robert Quasi-Endowment for French Undergraduate Program 1 154,000 Denomme, Robert Graduate Fellowship Quasi-Endowment for French Department 1 154,000 FINS Research Support Quasi-Endowment 1 20,582 Jones D. Lung Cancer Research Quasi-Endowment 300,000 President's Fund for Excellence Unrestricted Quasi-Endowment 121,471 Research Activities Quasi-Endowment Fund 314,828 University Quasi-Endowment Fund 2 480,816 Vincent, Hugh Delacy and Nannie McCutcheon Fund 25,000

Total Additions from Gifts to Quasi-Endowments 1,715,697$

Additions from Endowment Income (Capitalizations)Antrim, Lottie C. Income Capitalization Quasi-Endowment 8,942$ Athletics General Operations Quasi-Endowment 81,680 Chrysler, W. P. Fund for Engineering Library 1,694 Class of 1955 Fund 1,910 Class of 1956 Fund 6,503 Class of 1957 Fund 5,056 Class of 1958 Fund 6,427 Class of 1959 Fund 7,514 Class of 1960 Fund 6,333 Class of 1961 Fund 5,720 Class of 1962 Fund 8,349 Class of 1963 Fund 2,584 Class of 1964 Fund 5,086 Class of 1965 Fund 1,552 Dermatology General Investment Fund 30,548 Hecht, Sidney M. Fellowship in Chemistry 8,599 Hecht-Cruachem Chemistry Quasi-Endowment #3 1,419 HOPE Physician Incentive Quasi-Endowment 62,945 Horton, Charles E. Professorship in International Plastic Surgery Quasi-Endowment 11,869 Hughes Endowment Income Capitalization Quasi-Endowment 1,862 Jordan, Harvey E. Lectureship 1,400 Low, Emmet F. and N. Alyce Chair Quasi-Endowment 1,201

The quasi-endowment actions listed below were approved by either (1) the Executive Vice President and Chief Operating Officer, under the following Board of Visitors' resolutions or (2) the Assistant Vice President for Finance and University Comptroller, under the delegation of authority from the Executive Vice President and Chief Operating Officer:

● In October 1990 and June 1996 the Board of Visitors approved resolutions delegating to the Executive Vice President and Chief Operating Officer the authority to approve quasi-endowment actions, including establishments and divestments of less than $2,000,000, with regular reports on such actions.

● In February 2006, the Board of Visitors approved a resolution permitting approval of quasi-endowment transactions, regardless of dollar amount, in cases in which it is determined to be necessary as part of the assessment of the business plan for capital projects. Additionally, to the extent that the central loan program has balances, they may be invested in the long term investment pool managed by UVIMCO or in other investment vehicles as permitted by law.

47

McIntire School of Commerce Operations Fund 815,721 McIntire, Howard Quasi-Endowment in Neurology 22,089 Medical Center Capital Assets Quasi-Endowment 3 6,629,414

Additions from Endowment Income (Capitalizations) - continuedMiller, Mae W. Cancer Research Quasi-Endowment 5,929 Moyston, Vernah Scott Professorship in Ophthalmology Investment Quasi-Endowment 4,269 Plastic Surgery Quasi-Endowment Fund 18,067 Radiology Fund Special Diagnostic 4,305 Samuels, Bernard Ophthalmology Library Quasi-Endowment 2,439 School of Medicine Quasi-Endowment 86,179 Southwest-Dishner Gift Quasi-Endowment Fund 16,055 Taylor, Henry N. Fund 317 Virginia Quarterly Review - Anonymous 548

Total Additions from Endowment Income to Quasi-Endowments 7,874,525$

DivestmentsMellon Prostate Cancer Research Quasi-Endowment Fund 400,000$ McIntire School of Commerce Operations Fund 898,758 Thaler, Myles H. Quasi-Endowment for HIV Research 25,000

Total Divestments from Quasi-Endowments 1,323,758$

Notes:1 Quasi-endowment newly established or originally funded since January 1, 2013.

SOURCE: Financial AdministrationDATE: April 19, 2013

2 Includes current unrestricted gifts to the University which, under a standing Board of Visitors resolution, are required to be added to the University's Unrestricted Endowment Fund.3 Per February 7, 2008 BOV authorization, additional amounts up to $300 million can be made to this fund without further BOV approval.

48


SUMMER CONFERENCE RATES REPORT

2013, 2014 and 2015 On June 16, 2001, the Board approved the Signatory Authority Policy which delegates the "[e]stablishment of summer conference rates for housing facilities and for meals, overnight accommodation rates for the Birdwood Pavilion, and room rates for the International Center" to the "President, the Executive Vice President and Chief Operating Officer and the Vice President for Finance". Any approved transaction must be reported to the Board of Visitors at its next meeting following the action.

The rates below have been approved by Patrick Hogan, Executive Vice President and Chief Operating Officer and are hereby being reported to the Board of Visitors as required. Summer Conference Rates – Housing

49

Summer Conference Rates – Dining

Summer Housing and Dining Rates – College at Wise

International Center – Room Rates Guest lodgings are available for international visitors associated with the University of Virginia. The accommodation goal of the International Center is to create a small community for visitors from around the world who need short-term lodgings (3-month maximum stay). Actual

2012-13 Actual 2013-14

Proposed Increase

Percent Increase

Stays of 16 nights or fewer (per day) Single occupancy $40.00 $40.000 $0.00 0.00% Double occupancy $60.00 $60.00 $0.00 0.00% Stays of more than 16 nights (per month) Single, private bath $750.00 $750.00 $0.00 0.00% Double, private bath $1,125.00 $1,125.00 $0.00 0.00% Single, shared bath $650.00 $650.00 $0.00 0.00% Double, shared bath $975.00 $975.00 $0.00 0.00% Single “cozy” room $550.00 $550.00 $0.00 0.00% SOURCE: Business Operations

DATE: April 29, 2013

50

APPENDIX

2013-2014 PRATT FUND ALLOCATIONS ARTS AND SCIENCES - $3,440,000 allocation for 2013-2014, plus $245,820 anticipated carryforward of

remaining 2012-2013 funds Biology - The department proposes to allocate $183,378 from the 2013-14 allocation for graduate fellowships. Of this amount, $128,100 will be used to provide support to outstanding graduate students in Biology, including support of two Jefferson Scholars. The department proposes to use $55,278 to satisfy the department’s membership and to support one in-state student in the Biomedical Sciences Graduate Program (BIMS), an important, inter-school collaborative effort. The department proposes to use the remaining $66,622 of its allocation to augment the salaries of the Director and Associate Director of the Mountain Lake Biological Station. Chemistry - The department proposes to allocate $150,000 of the 2013-14 allocation for graduate support. Pratt funds are a crucial component of the total support package assembled to attract outstanding graduate students. The funds will be used as well to provide merit-based fellowships for outstanding students who have completed their candidacy exams. These funds will also continue to provide a portion of the department’s cost-share on the AES Fellowships in Energy Research. The department proposes to use $50,000 of its allocation to supplement: faculty compensation, including summer wage support for a new faculty position in organic chemistry; summer wages for faculty holding key departmental administrative posts, including the graduate program director and undergraduate program director; and instructional faculty to develop curricular materials for the upcoming academic year. The department proposes to use the remaining $50,000 to purchase research and instructional equipment and to fulfill partially the department’s commitments to matching support for major equipment grants. Mathematics - The Department of Mathematics proposes to allocate $113,098 in partial support of the salaries of four Whyburn Postdoctoral Fellows. Internationally recognized for its excellence, the Whyburn postdoctoral program brings new Ph.D. recipients in mathematics to UVA as faculty instructors for three years of teaching and research. Pratt funds support 40 percent of the academic year compensation plus one month of summer wages for each fellow. The department proposes to allocate $30,000 in faculty summer wages for faculty members serving as mentors in the summer REU program, for the associate chair and for faculty writing department-level grants. The department proposes to spend

Appendix – Page 1

$6,901 of the 2013-14 allocation, along with a portion of the remaining balance from prior years’ allocations (approximately $38,099), to provide fellowship support for students engaged in Ph.D. research. This funding allows the department to be competitive with peer institutions in attracting graduate students. The department is requesting to use $20,000 of prior years’ remaining balances to replace aging computers and printers for the faculty in order to facilitate the continuation of their research programs. Physics - The department proposes to allocate the entire 2013-14 allocation of $250,000 for fellowship support, health insurance, and tuition and fees to outstanding graduate students. Pratt funds are crucial to the department’s ability to provide competitive multi-year packages to attract the most highly qualified physics graduate students. The department also seeks to reallocate prior year balances of $38,721 in continued support of the salary of new faculty member Craig Group and to provide summer wages to the associate chair of the department. The department is requesting that $149,000 of prior year balances be reallocated as a matching cost share on a National Science Foundation proposal that has been awarded entitled “MRI Consortium Development of a Magneto-Electrostatic Spectrometer for High Precision Measurements of Neutron Beta Decay,” Principal Investigator - Dinko Pocanic. New Faculty Start-up Fund – A total of $2,540,000 is requested by the College to use as components of start-up packages associated with new hires, some of which are still being negotiated; for cost sharing on grants and other opportunities that may arise in the coming year; and for other strategic needs in building the programs in these four departments. It is estimated that this funding will be equally split between equipment, faculty salaries, and fellowships. This $2,540,000 is comprised of a $400,000 reserve managed by the dean and a $2.14 million Faculty Start-Up Fund, from which all allocations will be authorized by the Executive Vice President and Provost. This reserve, which will be carefully allocated in accordance with the terms of Mr. Pratt’s will, is critical in the recruitment of faculty members in biology, chemistry, mathematics, and physics.

Appendix – Page 2

SCHOOL OF MEDICINE — $3,800,000 allocation for 2013-2014, plus $427,908 anticipated carryforward of

remaining 2012-2013 funds Support and Training of Student Researchers - $751,406 - Graduate students and postdoctoral fellows are central to a successful biomedical research program. A modest institutional share from the Pratt bequest supplements funds from federal government training programs and charitable foundations to attract exceptional students. These individuals are critical in enhancing the quality of research in the Ph.D. and MD/Ph.D. programs at the University, and the success of these programs has a direct impact on the quality of faculty research at the School of Medicine. Core Facility Support - $976,502 – Research core facilities, including, but not limited to: the Small Animal Multimodality Imaging Core, Advanced Microscopy Facility, Biomolecular Research Facility, Gene Targeting & Transgenic Facility, Biorepository, and the new BioNMR core, provide access to large, expensive equipment and techniques that otherwise would not be available or cost-effective to individual investigators. These facilities operate on a fee-for-service basis. After development costs and other expenses, the core facilities average a cost recovery of 80%, with differential funded by Pratt allocations. These resources provide a competitive advantage to acquiring emerging technologies, and they are critical to the School of Medicine’s success in recruitment and retention of faculty and its ability to continue to grow its externally funded research programs. The Decade Plan - $2,500,000 - The School of Medicine proposes a special distribution to be used towards the recruitment package of the new Cancer Center director. This will be the third of four annual $2.5 million distributions for this purpose.

Appendix – Page 3

Meeting of the Finance Committee

May 20, 2013

1

Finance Committee Agenda

Consent Agenda:

• Working Capital Investment Policy

• Defined Contribution Retirement Plan Amendments

• Capital Items

- Project Review, Alderman Road Residence Halls, #6

- Project Approval, Facilities Management Shop Support/Office Building

• Purchase of 560 Ray C. Hunt Drive from UVa Foundation

Action Items:

• 2013-14 Operating Budget

- Academic Division

- UVa’s College at Wise

- Medical Center & Transitional Care Hospital

- Pratt Fund

- Annual Renovation and Infrastructure Plan

2

Amendment to Delegation of Authority in Working Capital Investment Policy

• Currently, the policy authorizes the VP & CFO to manage the investment of working capital.

• Propose amending the policy to change authorization to the EVP & COO to manage working capital investments.

3

Defined Contribution Retirement Plan Amendments

• Amend the Optional Retirement Plan of the University of Virginia allowing employees to receive benefits any time on or after the day of separation from service (to align with Virginia Retirement System).

• Amend the Optional Retirement Plan of the UVa Medical Center granting employees service credits for the vesting period requirement from the Albemarle Arthritis Associates (AAA), LLP, effective May 26, 2013.

4

Project Review

• Alderman Road Residence Halls

Building # 6

5

Project Approval

• Facilities Management Shop Support/Office Building

–14,000 GSF

–Provide shop support and office space

–$6 million ($5 million debt and $1 million cash)

6

Purchase of 560 Ray C. Hunt Drive from the University of Virginia Foundation

– 110,000 SF

– Purchase price not to exceed $15,850,000

– EVP-COO authorized to approve and execute purchase agreements and related documents on behalf of the University

7


Financing Academic Excellence

Progress Report

May 20, 2013 9

Progress to Date

• Established framework for four-year plan

• Commitment to faculty salaries

• Substantive discussion of Organizational Excellence

• Approved 2013-14 tuition and fees

• Prepared 2013-14 budget

• Implemented administrative changes to AccessUVa to

hold 2013-14 institutional investment at the 2012-13

level. Performed analysis necessary to identify

possible program enhancements and cost reductions.

10

Next Steps

• Overlay Strategic Plan investment priorities and determine

potential funding needs and sources (Strategic Investment Fund)

• Develop a tuition model to address long-term needs, particularly those of the College of Arts and Sciences

• Determine necessary changes to advancement organization to meet philanthropic goals

• Finalize program changes for AccessUVa by September 30, 2013

• Track AAU salary rankings against the Board-approved four-year goal

Incorporate into FY14 FAE

11

BOV Actions Reflected in the Budget

• Reviewed budget assumptions at November meeting:

– Endowment distribution

– Projected AccessUVa costs

– Estimate of sponsored research activity

• Reports on budget actions by the Governor and General Assembly

• Multi-year faculty salary plan and enrollment projections approved at February meeting

• Tuition, fees, housing, and dining rates approved at April meeting

13

2013-2014 BUDGET

ALL DIVISIONS

14

2013-14 Operating Budget

• Academic Division

• University of Virginia’s College at Wise

• Medical Center

• Transitional Care Hospital

• Pratt Fund

• Annual Renovation and Infrastructure Plan

15

ALL DIVISIONS 2013-14 Budget Priorities

Academic Division and the College at Wise

• Competitive faculty and staff compensation

• Objectives of the Higher Education Opportunity Act of 2011 – Enrollment growth

– Access and affordability

– Science, Technology, Engineering, Math and Health education

– Early Alert Retention Program (Wise)

• Capture and redirect savings for critical academic program requests through Strategic Investment Fund or other vehicle (UVa Academic Division)

Medical Center

• Strategic Investment Pool to support the Medical Center’s strategic plan

16

2013-2014 OPERATING EXPENDITURE BUDGET (In Millions)

Academic Div. $1,412.5 -2.5%

Medical Center $1,215.8 +8.7%

UVa-Wise $ 38.6 +4.6%

Total $2,666.9 + 2.4%

Academic Division 53.0%

Medical Center 45.6%

Wise 1.4%

17

Change from

2012-13

ALL DIVISIONS History of Employment Levels

(Budgeted FTE)

18

ALL DIVISIONS Where the Money Comes From

2013-14 ($2.67 Billion) 2012-13 ($2.60 Billion)

19

17.1%

5.8%

42.4%

11.4%

5.9%

5.1%

3.9% 8.4%

17.5%

5.9%

45.1%

10.7%

5.9%

5.0%

1.3%

8.6%

Tuition & Fees

State Appropriations

Patient Revenues

Sponsored Programs

Endowment Distribution

Expendable Gifts

Other

Sales & Services and Other

ALL DIVISIONS Where the Money Goes

2013-14 ($2.67 Billion) 2012-13 ($2.60 Billion)

14.2%

11.3%

5.7%

1.7%

3.0%

4.2%

4.0%

6.3%

2.4% 1.6%

45.6%

Instruction

Research & Public Serv.

Academic Support

Student Services

General Administration

O&M of Physical Plant

Financial Aid

Auxiliaries

Internal Debt Service

Transfers

Patient Care

20

13.9%

12.3%

6.2%

1.7%

3.5%

4.6% 4.2%

6.3%

2.3% 2.1%

42.9%

2013-2014 BUDGET

21

ACADEMIC DIVISION



Wise 1.4%

ACADEMIC DIVISION

Context for the 2013-2014 budget:

• Planning for the University’s third century

• Maintaining access and affordability

• Investing in the next generation of faculty

• Promoting organizational excellence

• Supporting the objectives of the Higher Education Opportunity Act of 2011 via enrollment growth and other strategies

• Designing a financial model to sustain the future

22

ACADEMIC DIVISION 2013-2014 Available Funds - $1.42 Billion

32.9%

10.2%

20.6%

11.1%

9.5%

2.7%

13.0%

Tuition & Fees


Sponsored Programs


Expendable Gifts

Operating Cash Balances

Sales & Services and

Other23

ACADEMIC DIVISION 2013-2014 Operating Expenditure Budget

$1.41 Billion

By Category By Activity

Faculty Comp. 28.8%

Staff Comp. 23.6%

Wages 4.3%

GTA/GRA 1.8%

Non-personal Services 41.5%

26.0%

21.3%

10.4% 3.1%

5.4%

7.8%

7.2%

11.1%

4.5%

3.2% Instruction


Academic Support

Student Services



Financial Aid

Auxiliaries


Transfers

24 GTA/GRA – Graduate Teaching Assistant/Graduate Research Assistant

UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE

2013-2014 BUDGET 26



Wise 1.4%

COLLEGE AT WISE Profile

• 1,707 Fall 2012 FTE Students

• 136 Faculty

• 182 Support Staff

27

COLLEGE AT WISE 2013-2014 Expenditure Budget - $38.6 M

By Source By Program

28.2%

2.8%

9.8%

4.1% 9.2%

4.8%

10.6%

30.5%

Instruction

Research &Public Serv.

AcademicSupport

Student Services

GeneralAdministration

O&M of PhysicalPlant

Financial Aid

Auxiliaries

28

26.9%

39.7% 2.3%

5.1%

1.4%

24.6%

Tuition & Fees

State

Appropriations

Sponsored

Programs

Endowment

Distribution

Expendable Gifts

Sales & Services

and Other

COLLEGE AT WISE Strategic Priorities

• Continue to implement goals and strategies to improve student success through increased retention and graduation rates

• Expansion of the Summer College program

• Support teaching and research faculty merit increase to recruit and retain high-quality faculty

29

UNIVERSITY OF VIRGINIA MEDICAL CENTER

2013-2014 BUDGET 31



Wise 1.4%

MEDICAL CENTER Strategic Objectives FY 13-19

• Continuously improve quality to achieve recognition as a top decile provider of clinical care among academic medical centers

• Continue collaborative efforts between the Medical Center and School of Medicine faculty to realize cost efficiencies to help offset reduced reimbursements for patient care anticipated due to the Affordable Care Act

• Fund the Strategic Investment Pool to grow the three-part mission of clinical care, education, and research

32

MEDICAL CENTER Budget Challenges

• Medicaid and indigent care funding

• Emerging highly competitive environment

• Centers of Excellence & Outreach market share and volume goals

33

MEDICAL CENTER Operating Budget

Actual Projected Budget 2012 2013 2014

Discharges – Medical Center 28,484 28,711 29,458 Discharges – Transitional Care Hospital 222 311 398 Outpatient Visits & ER 818,871 817,505 863,550 Average Length of Stay - Medical Center 5.82 5.68 5.45 ALOS - Transitional Care Hospital 27.85 26.62 28.00

Net Operating Revenue ($ millions) $1,159.6 $1,179.1 $1,274.8 Operating Expenses 1,082.0 1,118.4 1,215.7

Operating Income $ 77.6 $ 60.7 $ 59.1 Operating Income Margin % 6.7% 5.2% 4.6%

Non-Operating Gains $ 7.9 $ 39.1 $ 13.3

Net Income $ 85.5 $ 99.8 $ 72.4

Net Income Margin % 7.4% 8.5% 5.6%

34

OTHER REQUIRED APPROVALS

36

2013-14 BUDGET

2013-2014 PRATT FUND ALLOCATION School of Medicine

(In Thousands)

Research $3,100

Fellowships 700

Total $ 3,800

37

The Pratt Fund may be used for research and scholarships in the School of Medicine.

2013-2014 PRATT FUND ALLOCATION Arts & Sciences

(In Thousands)

New Faculty Start-Up $ 2,540

Fellowships 683

Faculty Salaries 147

Equipment 70

$ 3,440

38

The Pratt Fund may be used for faculty salaries, scholarships, and equipment in Departments of Biology, Mathematics, Physics, and Chemistry.

ANNUAL RENOVATION AND INFRASTRUCTURE PROJECTS PLAN (ARIP)

• Annually, Board of Visitors considers a master plan of renovation and infrastructure projects:

– Between $2 million and $5 million

– Funded with 100% cash (no debt)

• Allows a shorter time-frame to expedite these types of projects

• 2013-2014 Academic Division ARIP = $18.1 to $22.5 million

• 2013-2014 Medical Center ARIP = $6.7 to $7.8 million

39

Budget Resolutions Requiring Approval

• 2013-2014 Operating Budget and Annual Renovation and Infrastructure Plan for the Academic Division

• 2013-2014 Operating Budget for the University of Virginia’s College

at Wise • 2013-2014 Operating and Capital Budgets and Annual Renovation

and Infrastructure Plan for the University of Virginia Medical Center • Operating and Capital Budgets for the University of Virginia

Transitional Care Hospital • Pratt Fund Distribution for 2013-2104

41

2013-2014Budget Summary

All DivisionsRevised May 21, 2013

UNIVERSITY OF VIRGINIA 2013-2014 BUDGET SUMMARY

TABLE OF CONTENTS

CONSOLIDATED BUDGET SUMMARY ............................................................................................................. 1 ACADEMIC DIVISION

Budget and Planning Process .................................................................................................................. 11 Overview of Operating Sources of Funds ............................................................................................... 16 Overview of Operating Uses ................................................................................................................... 22 Major Academic & Administrative Budget Overviews

Executive Vice President and Provost .............................................................................................. 30 College and Graduate School of Arts & Sciences ............................................................................ 34 Curry School of Education ................................................................................................................ 39 Darden School of Business ............................................................................................................... 45 Frank Batten School of Leadership and Public Policy ..................................................................... 48 McIntire School of Commerce .......................................................................................................... 51 School of Architecture ...................................................................................................................... 54 School of Continuing and Professional Studies ................................................................................ 58 School of Engineering and Applied Science ..................................................................................... 62 School of Law ................................................................................................................................... 67 School of Medicine ........................................................................................................................... 70 School of Nursing ............................................................................................................................. 76 University Library ............................................................................................................................. 81 President’s Office ............................................................................................................................. 85 Director of Athletic Programs ........................................................................................................... 88 Vice President and Chief Information Officer .................................................................................. 92 Vice President and Chief Officer for Diversity and Equity .............................................................. 96 Vice President for Research .............................................................................................................. 98 Vice President and Chief Student Affairs Officer .......................................................................... 102 Executive Vice President and Chief Operating Officer .................................................................. 106 Vice President and Chief Human Resources Officer ...................................................................... 109 Vice President for Management and Budget .................................................................................. 112 Senior Vice President for University Advancement ....................................................................... 118

COLLEGE AT WISE ..................................................................................................................................... 121 MEDICAL CENTER ...................................................................................................................................... 129 ANNUAL RENOVATION & INFRASTRUCTURE PROJECTS PLAN ............................................................... 135 RESOLUTION ............................................................................................................................................... 137

Cover photograph courtesy of Daniel Addison/U.Va. University Communications


2013-2014 CONSOLIDATED BUDGET SUMMARY STRATEGIC PRIORITIES The academic program is the heart of the University of Virginia’s mission. From the time of Thomas Jefferson until today, the University has aspired to define its own model for higher education, one that continues to be widely respected for its originality. The University community seeks to be distinctive in several ways. Its efforts are rooted in a set of core principles: excellence, honor and self-governance, innovation and collaboration in the pursuit of knowledge, leadership for the public good, and a vibrant breadth of academic offerings within and across schools. These defining principles were originally expressed by Mr. Jefferson and continue to serve as the guideposts for the University’s future strategic development. These principles shape how U.Va. chooses its academic strategies, how it teaches students and prepares them for the future, and how it brings the knowledge, energy, and commitment developed in the University to the benefit of society through service.

U.Va.’s faculty and schools continue to be ranked among the best in the nation. For 20 consecutive years, the University’s overall undergraduate program has been ranked first or second among public institutions, surpassed only by the flagship University of California institutions. The University’s School of Law, the Darden School of Business, and the McIntire School of Commerce are all top fifteen schools. Rather than relying on a star system, the University has achieved its rankings through strong teams of faculty, and the whole has been greater than the sum of its parts.

Competitor public institutions are typically much larger. The University has foregone the economies of scale these institutions can achieve in favor of an emphasis on smaller courses and closer faculty/student interaction. Competitor private institutions are typically smaller, but they do not face the political pressures to grow in service to the Commonwealth that the University feels. One result of U.Va’s scale is that its departments are typically smaller than those at most research universities (including private institutions). Rankings are known to correlate with size. The University’s choice to remain relatively small requires collaboration across the Grounds in order to achieve a critical mass of faculty in certain important areas that is essential to ensuring continued academic recognition. The University’s decision to remain relatively small may constrain some of the choices that it can make, but it underscores a commitment to prioritize quality. Planning the Future The University of Virginia has reached a defining moment in its history, with stakeholders from every corner of the community coming together to re-examine and re-imagine the University as it approaches its third century. These stakeholders are working together on a strategic plan that will assess the University’s strengths and weaknesses, set priorities, and chart a bold, achievable course for the University as it approaches its third century. The strategic planning process has been inclusive, bringing together faculty, staff, alumni, parents, students, and Board of Visitors members to focus on seven distinct themes within the broad effort: enhancing faculty recruitment, retention, and development; determining what it means to be a public university in the 21st century; enhancing private support and understanding the University’s financial constraints; streamlining business practices; examining student life at a residential college and career services; creating synergy by identifying and aligning common interests across the University; and examining the use of technology to enhance learning and research. The University’s plan for the future, a draft of which will be reviewed with the Board of Visitors in the summer and fall of 2013, will include practical, measurable steps to address the challenges confronting higher education, but it will also reflect the University’s unique values.

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Investing in the Next Generation of Faculty Faculty hiring and compensation is a critical area of emphasis. Attracting and retaining the best faculty is more than just a financial issue. Hiring the right people is the most critical resource decision the University makes. Supporting, evaluating, and rewarding the current faculty is equally important. The University projects significant retirements over the next five to ten years, with the possibility that half of the faculty who will be at the University in 2020 are not on Grounds today. Many peer schools face similar demographic challenges. To succeed in hiring the right people, the University must be vigilant in the search and recruitment process and have the resources necessary to compete with peer schools. U.Va. desires not simply to replace retiring faculty members, but to use the occasion to elevate the quality of faculty in ways that are consistent with the University’s dual focus on education and research. The goal is to recruit faculty members who combine leadership in their field with a commitment to educational innovation. Financing Academic Excellence – A Multi-Year Financial Plan The University is developing a multi-year financial plan and it will incorporate initiatives and activities arising from the strategic plan. Maintaining Access and Affordability The University continues to examine its tuition pricing strategies together with its pioneering financial aid program, AccessUVa, in an effort to attract and retain a diverse student body of the highest caliber while also providing the appropriate level of resources for investment in programs, faculty, and staff. AccessUVa is fundamental to fulfilling the University’s public mandate, yet its financial model is proving difficult to sustain as the growth in the student population qualifying for need-based aid has increased, principally as a result of the economic downturn. The percentage of in-state students qualifying for need-based aid rose from 24 percent in 2004 to 34 percent in 2013,. The University has taken steps to control the additional investment in the program from institutional resources. A more in-depth discussion of AccessUVa can be found on page 7. Supporting the Objectives of the Higher Education Opportunity Act of 2011 A number of the University’s strategic initiatives are shaped by the Virginia Higher Education Opportunity Act of 2011 (HEOA), which committed the Commonwealth and the University to goals for degree attainment, economic opportunity, and affordable access. The overarching goal of the HEOA is to produce 100,000 more degrees by 2025, particularly in science, technology, engineering, mathematics, and health (STEM-H) fields. With a 94 percent graduation rate, the University’s response to this goal is to increase the number of undergraduate students by 1,673 between 2011 and 2018. Beyond admitting more students, the University has targeted ways to increase enrollment in STEM-H programs while maintaining the strength of its liberal arts programs. The HEOA legislation requires submission in odd-numbered years of a six-year plan by each higher education institution that outlines how the institution will respond to furthering the objectives of the Act. The first plan was prepared in 2011 and updated in 2012. The next plan will be submitted in July 2013 and not only projects efforts through 2020, but also reports on progress toward achieving the strategies outlined in the first report. Designing a Financial Model to Promote Excellence This budget marks additional progress in the University’s move toward a new financial model. The new model emphasizes transparent decision making, incentive-based allocations, and prudent stewardship of the University's resources. It will empower the individual academic units to be innovative and cost-efficient, and incentives will be built into the system to encourage entrepreneurialism among deans, administrative leaders, and faculty and staff members across the University. Most importantly, this new long-range planning model will enable the University to align its resources more precisely with its core

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mission areas of education, research, patient care, and service. In 2013-14, the University will continue migration of its current resource allocation model to better enable multi-year academic strategic planning, incentivize cross-Grounds activities that will pull together the collective strengths of schools, and provide, to the extent possible, long-term financial stability for the University. The 2013-14 budget for the Academic Division incorporates elements expected to be principles of the new internal financial model:

Budget assumptions were developed with greater collaboration between administrative leadership and deans;

Enrollment revenue associated with new students follows the activity that generates it, aligning incentives as the University grows;

Tuition revenue associated with 1.0 percent of the base tuition increase for undergraduate students will be distributed to schools, providing resources to meet the highest priority operating needs;

New funding provided in the 2013-14 budget is clearly tied to the University’s strategic priorities;

Budget discussions occurred in two phases this year. The first, held in the fall, was a strategic

conversation with each dean about the priorities and future direction of their school. The second meeting, held in the spring, was focused on the upcoming 2013-14 operating budget and more immediate strategies, priorities, and resource needs; and

Effective stewardship of the University’s resources led to academic and administrative units

looking within their organizations to re-allocate funds towards highest priority needs. Two additional actions that will further implementation of the new model are scheduled to begin July 1, 2013. Graduate tuition revenue will be credited directly to the school that enrolls the student, and, at the same time, the school will be responsible for addressing the financial aid needs of its graduate students, a responsibility that up to this time has been budgeted centrally. A principle of the new model is to charge the revenue centers directly for as many central services as practical to better align cost with usage. Beginning July 1, Facilities Management will issue “memo” bills to the schools for utility charges based on metered usage. This action will provide one year of data for the schools to analyze and begin to examine ways in which they might reduce consumption and generate savings. Reflecting the ongoing transition to a new internal financial model, this document focuses on the strategic priorities of the institution and its constituent units and service centers (beginning on page 30). Strategic direction, key trends, and budget analysis are included for each school and major administrative area. Promoting Organizational Excellence Academic and administrative units demonstrated during the budget process the institutional focus on productivity and effective stewardship of resources. The University remains committed to achieving organizational excellence, which encompasses sound fiscal stewardship of private and state funds and a “cost conscious” culture across all areas of the institution – administrative, academic, medical center, and auxiliary enterprises. As such, the University engages in ongoing targeted efforts to contain and reduce costs and enhance effectiveness. As part of the 2013-14 budget development process, schools and units were asked to report cost-saving and efficiency efforts implemented over the past year. They provided examples of how existing resources have been realigned to support their core mission, initiate new

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activities related to their strategic focus, and address faculty retention/recruitment, curriculum enhancement, and research. Overall, the University is committed to achieving a minimum of $44 million in productivity savings by 2016-17. It will achieve this goal by establishing a formal, continuous, and comprehensive Organizational Excellence Program that is housed within the Executive Vice President and Chief Operating Officer (EVP/COO) portfolio. The program will be governed by a pan-institutional steering committee that includes members of senior management, academic leaders, and other stakeholders with executive sponsorship from the EVP/COO and the Executive Vice President and Provost (EVP/Provost). The steering committee will identify and assess opportunities, prioritize projects for implementation, and assure successful execution for improved quality, streamlined processes and functions, and enhanced synergies throughout the institution. Potential areas to explore include optimal space utilization, closer relationships between the University and University-related foundations, collaborations with other universities, organizational redesign, and an integrated shared services strategy. Along these lines, at the request of the EVP/COO under a program called Paying Forward: Investing in the Future, employees across the University have already submitted over one hundred ideas identifying untapped efficiencies, improvements, and cost-saving opportunities. These forms of continuous improvement are an increasingly critical source of supporting strategic initiatives and demonstrating efficiency and effectiveness to key constituents, such as donors or others to whom the University is accountable. Savings achieved from the Organizational Excellence Program will be redirected to strategic priorities. The University of Virginia’s College at Wise The University of Virginia’s College at Wise is equally committed to a set of core principles: insight, competence, sensitivity, and integrity necessary for living enriched lives and for enriching the lives of others. Key strategic priorities addressed through this budget cycle include increasing student retention, improving graduation rates, and focusing on STEM-H offerings. Further discussion and analysis of The College at Wise’s strategic priorities and operating budget begins on page 121. Medical Center For the Medical Center, the 2013-14 fiscal plan aligns resources with strategies and goals to achieve the Health System’s strategic planning goal of becoming a top decile academic medical center based on quality measures. The Medical Center’s 2013-2014 fiscal plan has been developed while considering the challenge of providing patient care, teaching, and research services in an increasingly changing health care industry. The impact of the Accountable Care Act will not be fully realized for a number of years; however, many of its provisions have already taken effect. The result will be decreased reimbursements from government payors and an industry-wide erosion of pricing power with private payors. At the same time, costs associated with providing quality patient care will continue to have upward pressure due to increases in medical supply, pharmaceutical, and medical device expenses, growing administrative burden, and a shortage of health care workers. These changes require proactive fiscal planning now to ensure meeting the mission of the Health System in the future. Further discussion and analysis of the Medical Center’s strategic priorities and operating budget begins on page 129. OPERATING BUDGET SUMMARY The consolidated operating expenditure budget for the period July 1, 2013 through June 30, 2014 for the University of Virginia will total $2.7 billion, an increase of $62.4 million or 2.4 percent compared with the 2012-13 revised projection. The consolidated budget is comprised of the Academic Division (including the schools of medicine and nursing) at $1.4 billion or 53.0 percent, the Medical Center at $1.2 billion or 45.6 percent, and Wise at $38.6 million or 1.4 percent. The consolidated budget does not include capital or the activities of affiliated foundations.

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SOURCES FOR THE OPERATING EXPENDITURE BUDGET As shown below, patient revenues (45.1 percent) fund the greatest proportion of the operating expenditure budget, followed by tuition and fees (17.5 percent), grants and contracts (10.7 percent), sales and services and other (including auxiliary revenue, investment income, short-term financing, and other miscellaneous revenues) (8.6 percent), endowment distributions (5.9 percent), state general funds (5.9 percent), gifts (5.0 percent), and accumulated investment balances (1.3 percent).

2013-14 2012-13

EMPLOYMENT LEVELS – ALL DIVISIONS The University has planned for 15,879 full-time equivalent (FTE) positions for 2013-14, an increase of 0.6 percent or 89 FTEs over the 2012-13 revised budget levels as shown below. The Academic Division is expecting 8,363 FTEs, a decrease of 214 FTEs. This decrease is driven primarily by a reduction of personnel expenditures on sponsored research awards. The Medical Center is projecting 7,198 FTEs, an increase of 300 FTEs over current staffing levels. Increased staffing for the Centers of Excellence and new initiatives accounts for an increase of 209 FTEs. The remainder of the growth is to support facility expansion and core program growth for existing operations, including 23 additional FTEs at the Transitional Care Hospital. Wise plans to increase its employment by 3 FTEs to 318 FTEs, adding four self-funded positions in auxiliary enterprises and eliminating one faculty position in educational and general (E&G) programs.

2013-14 2012-13 Increase % Inc. 2012-13 2011-12Budget Projection (Decrease) (Dec.) Budget Actual

Academic Division $ 1,412.5 $ 1,449.2 $ (36.7) -2.5% $ 1,361.1 $1,224.6 Medical Center 1,215.8 1,118.4 97.4 8.7% 1,150.3 1,082.0 Wise 38.6 36.9 1.7 4.6% 36.3 34.7Total $ 2,666.9 $ 2,604.5 $ 62.4 2.4% $ 2,547.7 $ 2,341.3

Operating Expenditure Budget (in millions)

17.5%

5.9%

45.1%

10.7%

5.9%

5.0%

1.3%8.6%

Tuition & Fees


Patient Revenues

Sponsored Programs

EndowmentDistributionExpendable Gifts

Operating CashBalancesSales & Services andOther

17.1%

5.8%

42.4%

11.4%

5.9%

5.1%

3.9% 8.4%

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KEY INVESTMENTS Competitive Compensation Attracting and retaining high-quality faculty and staff is critical to success in teaching, research, and service. In 2003-04, the Board of Visitors (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 (T&R) faculty average salary to a position between the 15th and 19th rank among Association of American Universities (AAU) institutions. State-authorized salary increases, together with supplements approved by the Board, allowed the gap between the T&R faculty salary average at the University and at the institution holding the 19th position of AAU institutions to narrow from $7,000 in 2002-03 to $700 in 2007-08. That competitive position relative to faculty salaries eroded as a result of several years of salary freezes. In December 2011, based on performance, the Academic Division addressed strategic faculty and University staff recruitment and retention issues with an average two percent increase across all fund sources. As a result, the University moved from the 28th position to the 26th position with an average salary that was $4,300 below that of the institution holding the 19th position. In February 2013, the Board endorsed a goal to improve the average faculty salary at each rank to the 20th position of AAU peers. Assuming that these peers will raise their average faculty salary by three percent each year through 2016-17, the University can attain the 20th rank with annual merit-based increases for continuing faculty of 4.75 percent over the next four years. The 2013-14 budget includes the first step of this multi-year plan by incorporating the state-authorized average three percent base salary increase and adding an additional 1.75 percent for a total average increase of 4.75 percent. The University and its senior leadership are committed to performance-based implementation of compensation increases to align the use of resources with demonstrated achievement. To approach generational faculty turnover from a position of strength, the University also will adjust the distribution of faculty across ranks. Retiring faculty, primarily full professors, will be replaced largely with assistant and associate professors at the appropriate competitive faculty salary as the University

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returns to a more sustainable mix of 35 percent full professor, 40 percent associate professor, and 25 percent assistant professor. After five years without a base salary increase, the General Assembly included in its budget for fiscal year 2013-14 a two percent salary increase for classified staff and a compression adjustment of $65 per year of service for those employees with at least five years of service up to a maximum of 30 years of service. This budget includes an average three percent merit-based salary increase for University staff, over which the Board of Visitors has compensation authority. It is important that the University be in a position to recruit and retain talented staff to support the primary mission of teaching, research, and service. Enrollment Growth In February 2011 the Board approved a 1,400 student increase in prior undergraduate enrollment projections, bringing the total expected enrollment growth between fall 2011 and fall 2018 to 1,673. In fall 2013, overall undergraduate enrollment is expected to increase by 278 students.

To support this larger enrollment, the 2013-14 budget includes $4.9 million from incremental tuition revenues and $1.1 million in state support from the 2013 General Assembly. Representatives from the Budget Office, the Provost’s Office, and the undergraduate schools collaborated to develop a funding formula to ensure that new revenues are allocated to support new faculty hires and other critical support functions. Out of the 2013-14 incremental revenue from enrollment growth, $3.4 million is distributed to the undergraduate schools, $1.0 million is allocated to AccessUVa to fund need-based aid for the new students, and $593,000 is reserved for non-academic requirements. AccessUVa The Board of Visitors authorized AccessUVa in February 2004 to ensure that an undergraduate education at the University would be available to all students regardless of their financial circumstances. The program has been successful in increasing socioeconomic diversity, reducing student loan debt, and meeting 100 percent of need for all of the University’s students. The program, as conceived in 2004, offers 100 percent of financial need to all undergraduates; provides all-grant aid to low-income students (less than 200 percent of the federal poverty level); caps need-based loans for all undergraduate students; and includes financial literacy education and debt management strategies. In fall 2011, Art & Science Group LLC was hired to conduct a full review of AccessUVa, specifically assessing the effects of financial aid on the admissions process and outcome. Last fall, an internal AccessUVa project management team utilized data from the consultants to develop possible modifications to the program in order to manage the institutional investment and slow the recent rapid escalation of costs; focus on preserving the University’s premier financial aid program for students with demonstrated financial need, including an awareness of student indebtedness; and work to maintain student yield and socio-economic diversity. Certain administrative changes were made to hold the institutional investment in the program constant in 2013-14. More comprehensive recommendations based on the external study will be forthcoming in early 2013-14. The projected 2013-14 full cost of AccessUVa will be $95.4 million, an increase of $3.4 million from 2012-13. The University’s unrestricted contribution will remain unchanged at $40.2 million in 2013-14. The remaining portion of the total 2013-14 AccessUVa cost, $55.2 million, is funded from restricted gifts and endowments, athletic grants, state tax funds, outside grants, federal grants and loans, and work study. Research and Innovation As sequestration and federal budget cuts impact traditional research funding agencies, the University seeks to diversify its research base through collaboration across schools within the University; through

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partnerships with industry; and in cooperation with institutions located throughout the nation and globally. Examples of these types of activities are described below. Rolls-Royce Partnership: In 2007, British-based Rolls-Royce announced plans to build a new jet engine manufacturing plant in Prince George County, offering significant educational and research opportunities for the University. As part of Rolls-Royce's decision to locate its facility in Virginia, the University became part of an innovative partnership that includes Virginia Tech, Virginia State University, and the Virginia Community College System (VCCS) to collaborate with the company on a variety of fronts. The state will allocate $40 million to the University, Virginia Tech, and the VCCS over five years as incentive for the company’s location and research activities; approximately $23.5 million will accrue to the University. In 2012-13, the University received its fourth installment, totaling $4.8 million. The University will receive its final installment of $4.3 million in 2013-14: $3.8 million to establish new endowed professorships in the McIntire School of Commerce and provide graduate student support and, in the Engineering School, $200,000 to support the new manufacturing minor and $250,000 to match research awards from Rolls-Royce. AstraZeneca Collaboration: Through a strategic research collaboration established in 2009, the University and AstraZeneca are working together to develop innovative treatments for cardiovascular disease. Already, over $8 million in funding has been committed to U.Va. The partnership supports preclinical to clinical research projects that work to identify disease mechanisms and biological targets with the potential to lead to successful and commercially viable treatments. Leveraging the strengths of both partners, funded principal investigators from the University are matched with AstraZeneca researchers to accelerate the translation of research into new drugs for patient care. The alliance has the potential to greatly speed up the development of novel drugs to treat diseases in several targeted areas, taking these projects years ahead in some cases. Those targeted areas include coronary artery disease (CAD), peripheral vascular disease (PAD), myocardial infarction, atherosclerosis, and abdominal aortic aneurysms. In aggregate, these diseases account for nearly half of all deaths in the United States. Another exciting development with the AstraZeneca-U.Va. Research Alliance is that several projects that were initially started with modest seed grants have now been expanded into much larger grants. Sustainability: U.Va. has distinctive strengths in environmental sustainability research and education distributed throughout many academic and operating units. Sustainability projects include the U.Va. Bay Game -- a large-scale participatory computer simulation of the Chesapeake Bay watershed -- a powerful tool with real-world applications and impact. It has been described by federal and state agencies, non-governmental organizations, and corporate and education leaders as "the first of its kind" and “simply the best watershed management tool that exists.” U.Va. has the potential to become the global leader in shallow water coastal ecosystem research. The institution’s collaborative research activities can make a difference in how decisions and policies are developed that impact the health of the world’s ecosystems and associated societal and economic well-being. Large-scale Data Analysis (Big Data): The relatively new “Big Data” initiative brings together the computational, analytic, and big data research communities at U.Va., as well as the Library, Information Technology Services, and external partners. In addition to the sciences, mathematics, and engineering units, it also includes the social sciences, business, digital humanities, arts, environmental sciences, and translational medicine to manage, mine, model, and manipulate large data sets. Over 170 faculty and the University’s executive leadership have been involved in the planning stages for this emerging effort. If successful, there are major new federal funds available that may allow U.Va. to leapfrog the competition in this area. Philanthropic support would allow the University to take a commanding position nationally.

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U.Va. Innovation: U.Va. Innovation manages a new set of growing programs designed to enhance the University’s ability to disseminate knowledge and know-how via commercialization and corporate partnerships. These programs support and link with school-based efforts to enhance entrepreneurship in Commerce (entrepreneurship), Darden (new I-lab), Engineering (entrepreneurship courses), and Medicine (translational medicine). The University has recently received funding for three exemplary programs supporting this effort:

One of only seven multi-institution initiatives to win federal funding as part of the U.S. Department of Commerce’s i6 Challenge in 2012, the Virginia Innovation Partnership, led by UVa, will bring together universities, community colleges, corporations, investment capital and other resources to drive promising research discoveries forward. The Virginia Innovation Partnership is unique in the U.S. because it creates a network that links talent, ideas, and capital together across an entire state. The Virginia Innovation Partnership will receive $1 million in federal funding over two years as part of the i6 Challenge, with additional matching funds provided by corporate participants, university partners, and other entities.

In partnership with the Commonwealth, the University is also establishing the U.Va. Economic

Development Accelerator (UVEDA), a program to enhance proof-of-concept research, promote economic development, and accelerate university innovations toward new products, services, and companies. Private, federal, and foundation contributions will match a $1 million investment by the Commonwealth to develop the U.Va. Economic Development Accelerator (UVEDA), a public-private partnership designed to facilitate knowledge transfer and business development around University research and innovation. The public-private partnership created by the UVEDA will enable students, faculty, corporate partners, entrepreneurs, and others to experiment, collaborate, develop products and services, attract investments, build companies, and create jobs.

OpenGrounds serves as a catalyst for creative cross-disciplinary scholarship at the University and connects the University and the global community, addressing critical challenges through collaborative engagement. OpenGrounds connects fellows, faculty, students, and partners across disciplines to collaborate in new ways, share knowledge, and inspire creative action that makes impact on the world. A new state-of-the-art studio space on the Corner was launched in March 2012 and has hosted over 241 events, to date, with diverse groups from across Grounds and the external community. The initiative has already secured significant private funding (Vonage corporate challenge on designing the future of mobile communications). Based on peer benchmarking including Stanford, Harvard, Michigan, Columbia, and others, OpenGrounds is a comprehensive university program distinguished from any other in the nation. It could be rapidly expanded to studios in other schools and other external locations nationally and internationally.

U.Va. Applied Research Institute (ARI): ARI was created to enlarge the scope of projects that University researchers can participate in with government intelligence agencies and private companies. The institute, located at the U.Va. Research Park, has secured $1 million in contracts for projects to date and has recently hired its first full-time director. ARI leverages the University’s human and capital assets to support applied research, education, and training, with a focus on homeland security, national intelligence, and defense challenges with a particular emphasis on opportunities related to operations at Fort Belvoir’s Rivanna Station in northern Albemarle County. ARI’s mission is to create additional unique, traditional, and non-traditional research opportunities for faculty, staff, and students; develop and provide education and training programs relevant to ARI partners; foster pan-University research initiatives; provide U.Va. students unique analytical, research, and development opportunities and facilitate faculty/scientist exchanges with industry and government.

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NSF ASSIST Grant: U.Va. and three other universities are partnering on a national nanotechnology research effort to create self-powered devices to help people monitor their health and better understand how their environment affects it. The National Science Foundation (NSF) Nanosystems Engineering Research Center for Advanced Self-Powered Systems of Integrated Sensors and Technologies, or ASSIST includes four partner schools plus five other affiliated universities and about 30 industry partners in its global research consortium. ASSIST is funded by an initial five-year, $18.5 million NSF grant. ASSIST researchers are using nanomaterials and nanostructures to develop self-powered health monitoring sensors and devices that use body heat and motion as power sources. These devices could be worn on the chest like a patch, on the wrist like a watch, as a cap that fits over a tooth, or in other ways, depending on the biological system that is being monitored. New devices created from this partnership could transform health care by improving the way doctors, patients, and researchers gather and interpret uninterrupted streams of health data.

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ACADEMIC DIVISION BUDGET AND PLANNING PROCESS

As the University migrates to a new internal financial model, the Academic Division currently utilizes a hybrid budget methodology, with three primary approaches: Target Budgets: This portion of the budget is managed on a centralized basis and includes most of the schools and administrative units. Revenues in this category are deposited into central accounts and include: all undergraduate and medical tuition, the state general fund appropriation, all E&G fees, some sales and services activities, most unrestricted endowments, and 28 percent of the facilities and administrative (F&A) cost recoveries. From this central revenue source, target budgets are issued to each major operating unit and cover most direct expenses of the unit. Target budgets are systematically adjusted for institutional salary and fringe benefit actions, as well as for budget reductions. Most indirect expenses, such as operations and maintenance of space, libraries, central IT systems, and administrative overhead (e.g., accounting, payroll, executive administration) are paid centrally instead of by the unit. Most operational decisions (e.g., allocation of funds within the unit, hiring, recruitment/retention packages, carry forward of year-end cash balances) are decentralized. Sales and Services Budgets: This portion of the budget is managed on a decentralized basis. Revenues are deposited to units, while most direct and indirect expenses are managed by the unit. Examples of activities in this category are auxiliary units (e.g., Athletics, Housing, Dining, Student Health), self-sufficient units (Law School and Darden School of Business), portions of units with revenue-sharing arrangements (McIntire School of Commerce, School of Medicine, School of Continuing and Professional Studies (SCPS)), and graduate programs). These activities are responsible for self-funding institutional salary and fringe benefit adjustments and generally are not subject to budget reductions (since general funds are not allocated to them). Many, but not all, sales and

services activities make a contribution towards indirect administrative costs through either an overhead assessment on costs or a revenue tax. Summary Budgets: This portion of the budget is not required to be budgeted at the detail level of expenditure in the University’s accounting system and is incorporated into the budget only through a summary of anticipated activity from the unit. The revenues are generally generated on a decentralized basis and include gifts, endowment distribution, F&A, and intellectual property. Institutional salary and fringe benefit adjustments are self-funded in these activities, and they are not subject to budget reductions. These activities do not make a contribution towards indirect administrative costs. A sub-category of summary budgets is research grants and contracts, which are detail-budgeted in the accounting system but on a project (multi-year) basis by the Office of Sponsored Programs. Additionally, the sponsors, mostly federal agencies, generally pay an indirect cost assessment (for facilities and administration) to the institution. BUDGET DEVELOPMENT The development of the 2013-14 budget had the following objectives:

Assure that resources are aligned to advance the President’s priorities of faculty retention and recruitment, curriculum enhancement, and research;

Understand multi-year financial planning efforts occurring in the schools and major service units;

Continue the transition to an activity-based resource allocation model; and

Demonstrate commitment and resources available to address high-priority items emerging from the strategic planning process.

The 2013-14 budget process began in November 2012 with the development of detailed budget assumptions, which were shared internally with the deans and vice presidents, as well as with the

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Board. In December, meetings were held with each school to discuss the school’s strategic vision, priorities, challenges, and multi-year financial planning efforts. These meetings, which included senior University leadership, financial staff, and school representatives were a prominent example of the new internal financial model transition and demonstrated improved transparency and communication. In December and January, targets were established for centrally-managed budgets, while units began to develop sales and services detailed budgets and to estimate summary budgets. The Budget Office projected cost increases for opening new facilities, utilities, compensation, and Board priorities. Units identified their highest priority items and re-allocated their funds to ensure that priorities were funded. The Budget Office began to model potential revenue scenarios (tuition and state general funds) to meet the requirements of the target budgets. Revenues from incremental undergraduate enrollment projected for 2013-14 were shared with schools using the methodology developed and used for the 2012-13 budget, with budget adjustments occurring in March 2013. Several schools that have been traditionally funded through target budgets have capitalized on new tuition and fee revenue opportunities (to be discussed further in the tuition section beginning on page 18). In March and April, budget meetings were held with vice presidents, deans, and associate deans and with each major administrative area. The individual school/unit meetings were attended by senior administration and provided an opportunity for the schools/units to demonstrate how their strategic priorities are reflected in the 2013-14 operating budget. The 2013-14 budget reflects the state-authorized salary increases and compression adjustments, as well as supplemental salary increases authorized by the Board for faculty and University staff. In the final step of budget development, senior

administrators reviewed additional resource needs that were identified during budget meetings and cannot be addressed within the target budgets provided. Available revenue from tuition, state general funds, and private funds were used to address the highest priority needs, some of which include costs imposed by external parties over which the University has little or no control. More information concerning the 2013-14 funding decisions are included in the unit budget reviews, which begin on page 30. BUDGET AND PLANNING GUIDELINES The Academic Division utilized the following revenue assumptions in the development of the proposed budget: 1. Tuition: For planning purposes, schools

developed plans using undergraduate tuition and fees from the incumbent four-year financial plan discussed on page 2. Actual tuition and fee charges for 2013-14 reflect rates approved by the Board of Visitors in April.

2. Research: Grant and contract revenue are based on historical spending patterns and known new awards with the presumption of no growth projected in base federal research spending together with a decrease related to one-time ARRA (stimulus) funds. The Facilities and Administrative cost rate is 58 percent for contracts awarded beginning July 1, 2012.

3. Auxiliary enterprises: Schools developed

plans using student mandatory fees included in the incumbent four-year financial plan. Actual revenues and fee charges for 2013-14 are based on activity volumes and reflect rates approved by the Board of Visitors in April.

4. State appropriations: For planning purposes,

schools and units assumed no growth in the state appropriations. This budget reflects the allocations from the state budget as approved by the Governor and General Assembly, including the July 2013 salary increases.

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5. Endowment and interest payout: The

University’s approved endowment spending policy will govern the endowment distribution for 2013-14. Return on cash balances invested in the University short-term pool will reflect market-based rates as described in the University’s Internal Investment Program policy.

6. Philanthropy: Estimates for annual giving

are projected for each school and unit based upon estimates developed in consultation between University Advancement and school officials.

The Academic Division utilized the following expenditure assumptions in the development of the proposed budget: 1. Enrollment: Schools assumed planned

enrollment growth for fall 2013 would be supported by allocating incremental revenue related to enrollment growth to those schools with additional students according to a formula that supports the cost of faculty as well as academic, student, and administrative support.

2. Financial aid: The institutional contribution

to AccessUVa will remain the same in 2013-14 as in 2012-13, with savings from administrative changes used to offset other increases. The general parameters of the program remain the same.

3. Compensation:

a. All budgets will account for the

annualized cost of the July 2013 state-authorized salary increases.

b. State-authorized changes are funded from unit funds for self-supporting activities. Normally, state-authorized compensation changes are provided from central funds for centrally-funded activities.

c. 2013-14 fringe benefit rates are estimated at:

Pooled Fringe Benefit Rates Projected 2013-14

FT Faculty and University Staff-Executive

25.2%

FT Classified Staff; University Staff-Managerial/Professional, and University Staff Operational/Administrative

35.9%

Part-time Faculty and Staff with benefits

25.2%

Part-time Faculty and Staff without benefits and Wage employees

6.0%

4. Operations and maintenance costs: The

University commits to funding operating and maintenance costs for new facilities and proactively addressing deferred maintenance. Debt service includes principle payments as well as the blended internal borrowing rate of 4.75 percent.

5. The Darden School of Business and the Law

School financial self-sufficiency models and the McIntire School of Commerce and School of Continuing and Professional Studies revenue-sharing agreements continue in 2013-14.

6. Auxiliary enterprises, the Medical Center,

and the University Physicians Group include a general and administrative charge on the adjusted 2011-12 expenditure base to cover their share of central services.

7. Self-supporting units will continue to

comply with the Board of Visitors Capital and Operating Reserves Policy established in April 2006. Schools and units will also plan for appropriate contingency reserves.

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. In 2013-14, the University expects to receive approximately $13 million and will utilize the funds strategically to assist in new faculty start-up packages, purchase critical research equipment, and replace obsolete equipment. This funding comes to the University as reimbursement of purchases, so

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neither the allocation nor the related purchases are included in the University's 2013-14 budget. COMPARISON OF THE OPERATING BUDGET TO AUDITED FINANCIAL RESULTS The annual operating budget reflects budget allocation decisions necessary to accomplish University goals and ensure physical and financial resources are appropriately preserved for the future. It is the responsibility of the University’s administration to propose annual plans which keep expenditures and revenues in balance. The University’s 2013-14 operating budget serves as its financial plan and is developed on a basis that is different than the basis for preparing audited financial statements. The University prepares its financial statements in conformity with accounting principles generally accepted in the United States. As a public institution, the University adheres to standards promulgated by the Governmental Accounting Standards Board (GASB).

The Statement of Revenues, Expenses, and Changes in Net Assets from the audited financial statements most closely relates to the operating budget, but there are different rules and conventions employed. Several of these differences include: GASB financial statements classify general

fund appropriations as non-operating income, while the operating budget classifies them as operating income.

GASB 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.

GASB financial statements recognize

depreciation expense for capitalized buildings and equipment. In the Academic Division’s operating budget, depreciation expense is not funded, and capital purchases of less than $2 million are expensed rather than spread over the useful life of the capital asset. This is, in part, due to the state funding a portion of maintenance as a

capital outlay appropriation. Academic Division expenditures for major repair or renovation work occur within the reserve accounts, which are not part of the operating budget. Alternatively, the Medical Center’s operating budget includes funded depreciation for buildings and equipment.

GASB financial statements reflect actual

endowment investment performance. The operating budget reflects endowment distributions – funds available for expenditure.

GASB financial statements accrue certain pledged gifts in the year the pledge is made. The operating budget includes only cash received for gifts – again, funds available for expenditure.

Management reports on the fiscal condition of the University on a cash/budgetary basis as well as the modified GASB principles. PERFORMANCE MEASUREMENT Under the 2005 Restructured Higher Education Financial and Administrative Operations Act and the 2006 and 2009 Management Agreements, the University’s performance on a set of pre-defined measures has been subject to review annually by the State Council of Higher Education for Virginia (SCHEV). The Higher Education Opportunity Act of 2011 (HEOA) suspended the Restructuring Act’s requirement that institutions submit performance measure reports until new measures were defined in accordance with the goals and objectives of the HEOA, and further provided that any institution certified by SCHEV as having met its institutional performance benchmarks for fiscal year 2010-11 would be eligible to receive the related financial benefits in subsequent years until new measures were defined and assessed by SCHEV. Therefore, the University remains eligible in fiscal year 2013-14 for the financial benefits, including interest earned on tuition cash balances and rebates of certain procurement fees. The 2012-14 biennial budget, as amended during the 2013 Session, includes newly-defined educational-related performance measures that

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will be assessed biennially by SCHEV no later than October 1 beginning in 2014.

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ACADEMIC DIVISION OVERVIEW OF OPERATING SOURCES OF FUNDS

The Academic Division’s projected operating sources are summarized on the next page. This schedule provides available operating resources based on projected cash inflows from state general funds, tuition and fees, sponsored research and F&A cost recoveries, endowment distributions, gifts, sales and service revenues, and other sources. Available resources for the operating budget are $1.42 billion for 2013-14, a 2.2 percent decrease from the revised sources available for 2012-13 of $1.46 billion. A more detailed discussion follows over the next few pages, but the decrease in resources primarily is related to one-time carry forward balances included in the revised 2012-13 sources and expected reduced sponsored program activity. For the most part, cash balances carried forward from one year to the next are related to purchase commitments spanning the fiscal year, multi-year strategic commitments, one-time balances used for one-time expenses such as start-up packages, and departmental contingency reserves to be used in the event of revenue shortfalls or unanticipated expenditures. The general reduction in 2013-14 sources over the prior year is partially offset by increases in tuition, state general funds, and other sales and services revenues. As demonstrated in the 2013-14 chart below, tuition and fees (32.9 percent) provides the greatest proportion of the operating budget, followed by sponsored programs (20.6 percent), sales and service revenue and other (including auxiliary sales and services, investment income, and other miscellaneous revenues) (13.0 percent), endowment distributions (11.1 percent), state general funds (10.2 percent), gifts (9.5 percent), and operating cash balances (including carry forward balances ) (2.6 percent). 2013-14 2012-13

32.9%

10.2%

20.6%

11.1%

9.5%

2.7% 13.0%

Tuition & Fees


Sponsored Programs

EndowmentDistribution

Expendable Gifts

Operating CashBalances

Sales & Services andOther

30.7%

9.6%

20.8%

10.6%

9.4%

7.2%

11.7%

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University of Virginia - Academic DivisionProjected Operating Sources

( $ )

Sources Amount1

Tui on and GF

Appropria on

2

Grants & Contracts,

F&A

3

Private Unrestricted

4

Private Restricted

5

Local Sales, Services,

Other

6

Auxiliary Total‐Amount

FY Resources Category

2013‐R Appropria ons: State

Tui on

Less: Tui on to Financial Aid

Student Fees

Sales & Services

Grants & Contracts

F&A ‐ Cost Recoveries

Endowment Distribu on

Endowment Admin Fee

Gi s

Gi s‐Via Affil Fdns

Investment Income

Opera ng Cash Balances

MBU Totals

2014‐O Appropria ons: State

Tui on


Student Fees

Sales & Services

Grants & Contracts



Endowment Admin Fee

Gi s

Gi s‐Via Affil Fdns

Investment Income

Opera ng Cash Balances

MBU Totals

140,140,273 140,140,273

436,853,058 57,001 436,910,059

‐62,145,586 ‐62,145,586

30,108,336 2,369,840 39,425,610 71,903,786

5,887,609 10,920,116 152,406,701 169,214,426

237,366,675 237,366,675

16,600,000 48,800,000 65,400,000

40,614,000 99,055,000 139,669,000

15,376,000 15,376,000

33,890,000 33,890,000

315,000 102,169,604 102,484,604

706,876 706,876

59,406,186 21,471,056 17,868,919 2,512 4,977,289 1,298,537 105,024,499

626,849,877 307,637,731 74,173,919 235,117,116 19,031,122 193,130,848 1,455,940,612

144,889,673 144,889,673

459,170,737 57,000 459,227,737

‐64,193,975 ‐64,193,975

29,940,579 2,107,956 40,481,427 72,529,962

12,134,298 11,836,385 159,708,321 183,679,004

229,327,922 229,327,922

16,600,000 46,600,000 63,200,000

41,666,000 101,284,000 142,950,000

15,472,000 15,472,000

35,245,000 35,245,000

327,000 100,243,799 100,570,799

1,231,638 1,231,638

5,244,752 18,059,556 11,582,030 1,679,190 2,630,667 2,900 39,199,095

603,786,063 293,987,478 69,047,030 238,451,989 17,863,646 200,192,648 1,423,328,854

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FUNDING SOURCES State General Fund Appropriation State general funds are tax revenues appropriated by the General Assembly to the institution. The $144.9 million budgeted general fund appropriation for 2013-14 reflects an increase of approximately $4.8 million over the revised 2012-13 budget of $140.1 million. The state general fund appropriation is comprised of:

$123.4 million in general operating

appropriation, a $3.0 million increase over 2012-13. This increase includes base operating support, as well as funding for enrollment growth and faculty and staff salary increases;

$4.3 million for the Rolls-Royce

Partnership; $5.7 million, an increase of $1.0 million, for

bioengineering, biosciences, cancer research, and the focused ultrasound program. The new money is designated for cancer research;

$1.0 million for the creation of an economic

development accelerator; and

$10.5 million for student financial aid.

The following chart shows the University’s standing among peer public institutions using the 2012-13 state appropriation for each school:

Tuition and Fees The 2013-14 tuition and fees budget was developed using the approved enrollment growth plan, which reflects a total of 21,383 on-Grounds headcount students for fall 2013. Of the 14,599 undergraduate students, it is expected that 69 percent will be Virginians. The off-Grounds enrollment projection for fall 2013 is

2,576 students. The following chart demonstrates the trends in undergraduate, graduate, and professional (graduate programs in McIntire, Darden, Law, and the School of Medicine) enrollment.

The 2013-14 budget reflects tuition increases approved by the Board of Visitors in April:

TUITION AND E&G FEES

In-State Out-of-State

Undergraduate 3.9% 4.9% Graduate 3.9% 2.3% Graduate – Ph.D. Arts & Sciences (yrs 4-completion)

145.9% 181.2%

Graduate – Professional Master’s Degree Arts & Sciences

7.3% 4.3%

Batten MPP Post Grad Program

4.9% 11.5%

Nursing CNL Program 19.4% 19.1% Graduate - Commerce (tuition and all fees)

1.5%-3.0% 1.5%-3.0%

Darden (includes all fees) 3.7%-4.1% 3.7%-4.0% Law (includes all fees) 3.2% 2.9% Medicine (includes all fees) 3.7% 3.7%

Tuition and fees revenue, net of financial aid, is expected to increase by $20.9 million or 4.7 percent to $467.5 million. The chart on the following page provides the detail. Approximately $19.6 million of the tuition and fees increase relates to increases in undergraduate, Medical School, and SCPS tuition rates. Undergraduate tuition revenues include the Board-approved $5,000 tuition differential charged to students in the McIntire School of Commerce, expected to generate approximately $3.5 million, and the Board-

School

2012-13 General Funds per In-state Student

University of North Carolina $ 23,182 University of Maryland $17,887 University of Michigan $13,399 University of Virginia $9,129

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approved $2,000 tuition differential charged to first-year students in the School of Engineering and Applied Science, expected to generate approximately $1.3 million. About $2.7 million of the incremental revenue is allocable to tuition from self-supporting degree programs, including Law, Darden, McIntire graduate programs, and an Engineering executive-style graduate program.

Approximately $0.6 million of the additional revenue is related to E&G fees, application fees, program fees such as the School of Nursing and School of Medicine clinical services fees, the School of Nursing laboratory fee, and the School of Engineering and Applied Science lab fee, and mandatory student fees assessed by auxiliary (i.e., non-academic) programs such as athletics, bus services, student union, student health, and other activities.

In 2013-14, $64.2 million, 14.0 percent of tuition revenue, will be applied to undergraduate, graduate, and professional financial aid. The University re-allocates tuition revenues to support financial aid through the following programs: $32.6 million to support AccessUVa.

$12.3 million to fund the cost of in-state

tuition and fees and a healthcare voucher for eligible graduate teaching assistants.

$5.6 million to provide the differential between in-state and out-of-state tuition and fees for out-of-state graduate students employed in a significant academic capacity and earning at least $5,000 annually.

$12.5 million for graduate fellowships, including Law and Darden students.

$1.2 million for summer session, January term, study abroad, and academic transition.

Grants, Contracts, and F&A Recoveries Direct expenditures reimbursed from grants and contracts are expected to be $229.3 million, a decrease of $8.0 million or 3.4 percent as compared to the 2012-13 revised budget. This decrease is based on the spend down of research grants funded under the American Recovery and Reinvestment Act of 2009 (ARRA) and concerns about future federal investment in research and the impact of sequestration, as evidenced by a real decline in new sponsored program awards during the period July 2012 through March 2013 in comparison to July 2011 through March 2012. The following graph demonstrates the trend in research awards for the University, including the temporary impact of ARRA research awards in fiscal years 2010-2012.

2013-14 Tuition and Fees Revenue (in 000s)

2012-13 Revised

2013-14 Projected

% Change from 2012-13

TuitionUndergraduate – In-state $ 94,280 102,557$ 8.8%Undergraduate – Out-of-state 154,620 164,314 6.3% Less: Tuition to financial aid (31,069) (32,624) 5.0%Net Undergraduate Tuition 217,830 234,247 7.5%

Graduate 35,353 35,353 0.0% Less: Tuition to financial aid (22,552) (22,417) -0.6%Net Graduate Tuition 12,801 12,936 1.1%

Professional 100,416 103,123 2.7% Less: Tuition to financial aid (6,870) (7,450) 8.4%Net Professional Tuition 93,546 95,673 2.3%

Medical School 27,128 29,007 6.9% Less: Tuition to financial aid (510) (510) 0.0%Net Medical School Tuition 26,618 28,497 7.1%

Other Tuition 25,114 24,874 -1.0% Less: Tuition to financial aid (1,145) (1,193) 4.2%Net Other Tuition 23,970 23,681 -1.2%

Student Fees 71,904 72,530 0.9%

Total Tuition and Fees $ 446,668 $467,564 4.7%

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In conjunction with the decrease in expected grants and contracts, the budget includes a $2.2 million or 3.4 percent decrease in the reimbursement of indirect costs by grants and contracts. The percentage decrease in F&A recoveries mirrors that for grants and contracts despite the increase in the University’s F&A rate effective July 2012. The University successfully renegotiated the F&A rate to 58 percent, which is applied to new contracts awarded after July 2012. Because the higher rate only gets implemented as new contracts are awarded, it is anticipated that the benefit of the new rate will take several years to impact recoveries. F&A recoveries are expected to comprise $63.2 million of the 2013-14 funding sources. Endowment Income and Gifts The endowment spending policy adopted by the Board allows the endowment spending distribution to increase each year by an inflationary factor, as long as the resulting distribution falls between four and six percent of the preceding June 30 market value of the endowment.

In 2012-13, the spending rate was increased by an inflationary measure of 3.8 percent, based on the five-year average of the Higher Education Price Index. The 2012-13 distribution is made in two installments in January 2013 and June 2013. Through March 2013, the endowment return has been 10.8 percent. Per the Board of Visitors policy, the 2013-14 endowment distribution will increase by 2.4 percent, which was reflected in the budget assumptions reviewed with the Board in November 2012. The 2013-14 distribution will be made in two installments (July 2013 and January 2014) and is expected to provide $143.0 million to the 2013-14 budget, an increase of 2.3 percent over 2012-13. A 0.5 percent administrative fee (based on the endowment’s June 30 market value for the preceding fiscal year) will be assessed to each endowment. One-half of the assessment will be held centrally, while the other half will be returned as unrestricted funds to the schools and units that hold the endowment accounts. The 2013-14 fee will be based on the endowment

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market value as of June 30, 2013 and is expected to provide $15.5 million to the 2013-14 budget, an increase of 0.6 percent over 2012-13.

Total gifts from annual giving and transferred from foundations available for the operating budget is projected at $135.8 million, a $0.6 million decrease over revised 2012-13. This projection excludes philanthropic cash flow that will not be available for the operating budget (i.e., it is deposited with University affiliated foundations, invested in the endowment, transferred to capital projects, or made in the form of non-cash gifts-in-kind). Sales and Services and Other Sources of Funds Remaining sources of funds for the 2013-14 operating budget include sales and services ($183.7 million), operating cash balances ($39.2 million), and investment income ($1.2 million). Sales and services includes revenues generated from housing rents, dining contracts and retail sales, bookstore sales, parking permits and fines, athletic conference revenues and gate receipts, and other activities. Sales and services revenue is expected to increase by 15.3 percent over 2012-13. The change is driven by an increase of

$7.0 million in the Medical Center’s shared funding of medical education. The $39.2 million in operating cash balances for 2013-14 includes $11.6 million in accumulated investment earnings to meet expenditure commitments made from unrestricted institutional private funds. The accumulated investment earnings were the result of a Board action years ago to invest a portion of current funds in the pooled endowment fund. The revised 2012-13 operating budget includes operating cash balances of $105.0 million. This reflects unexpended funds carried forward from 2011-12 and available for expenditure during 2012-13. For the most part, cash balances that carry forward from year to year are related to purchase commitments that span fiscal years, multi-year strategic commitments, one-time balances used for such things as start-up packages, vacancy and turnover savings, and departmental contingency reserves to be used in the event of revenue shortfalls or to meet unanticipated expenditures.

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ACADEMIC DIVISION OVERVIEW OF OPERATING USES This Budget Summary document includes two views of the Academic Division’s projected operating uses by fund source: by expenditure category on page 25, which summarizes expenditures for personal services, other than personal services (OTPS), and financial aid, and by activity on page 27, which summarizes total expenditures by instruction, research, administration, and so forth. The projected operating uses are net of revenues and recoveries that internal service providers (such as Printing and Copying Services and Facilities Management) receive from other University departments to offset their expenses, as well as funds that are transferred to reserves.

The Academic Division’s projected spending plan comes to $1.41 billion for 2013-14, a decrease of $36.7 million or 2.5 percent as compared to the revised 2012-13 budget. This overall decrease is due to a reduction of expenditures from sponsored research awards and one-time carry forward balances included in the revised 2012-13 uses. As compared to the projected available sources of $1.42 billion, the 2013-14 operating plan generates a surplus of $10.8 million. The surplus is comprised of operating cash reserves set aside for future years and restricted gifts and endowment income not expected to be expended in 2013-14. The spending plan includes several funds held in a central account for specific strategic needs, which will be allocated during the 2013-14 fiscal year, and for unexpected contingencies. Additionally, each vice president and dean manages reserves related to anticipated vacancies and contingencies. The central reserves include:

$ 9,708,000 Strategic needs $14,400,000 Funds for July compensation adjustments $ 8,790,000 Reserve related to unanticipated tuition shortfalls, weather-related utility

usage, and other contingencies

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OPERATING USES BY EXPENDITURE CATEGORY As the pie chart below indicates, 58.5 percent of the Academic Division’s total operating budget will be expended on personal services. When financial aid and auxiliary operations are excluded, 69.1 percent of educational expenditures are for the compensation (including fringe benefits) of faculty, staff, wage employees, and graduate teaching and research assistants. 2013-14 2012-13

Compensation Compensation, as shown in the above pie charts, includes both salaries and a fringe benefit assessment. Salary expenses are burdened with a fringe rate, which is collected in a pooled fringe account that covers expenses for the employer share of FICA/Medicare; retirement (whether VRS or Optional Retirement Plan); health, dental, disability, and life insurance; unemployment insurance; supplemental benefit credit for University staff paid $42,000 or less; the faculty and employee assistance program; WorkMed (occupational health); and employee professional development.

Fringe benefit rates must be approved by the Department of Health and Human Services (DHHS) in order to be assessed to salary expenditures from grant sources. Fringe rates used in this Budget Summary are outlined in the following chart. The “Approved 2012-13” rates have been approved by DHHS and are reflected in the 2012-13 revised budgets. The “Projected 2013-14” rates were used by sales and services units when developing their 2013-14 budgets. Revised fringe benefit rates are expected to be submitted to DHHS later this spring.

Pooled Fringe Benefit Rates

Approved 2012-13

Projected 2013-14

FT Faculty and University Staff-Executive

26.3% 25.2%

FT Classified Staff; University Staff-Managerial/Professional, and University Staff Operational/Administrative

35.6% 35.9%

Part-time Faculty and Staff with benefits

26.3% 25.2%

Part-time Faculty and Staff without benefits and Wage employees

5.5% 6.0%

In the 2012-14 Appropriation Act, there is a provision for a 3.0 percent faculty salary increase and a 2.0 percent staff salary increase, as well as a staff compression adjustment, in July 2013, provided certain financial benchmarks are achieved at the state level by June 30, 2013. This budget includes provision for the following salary increases effective in July 2013:

4.75% of salary budgets authorized for merit increases for T&R Faculty;

3% of salary budgets authorized for merit increases for Administrative and

Faculty Comp.28.8%

Staff Comp.23.6%

Wages4.3%

GTA/GRA1.8%

Other41.5%

Faculty Comp.28.3%

Staff Comp.21.8%

Wages4.7%

GTA/GRA1.9%

Other43.3%

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Professional Faculty, Graduate Teaching and Research Assistants, and University Staff; and

2% base pay increase for Classified Staff with a rating of meets expectations or better, plus longevity/compression base pay increase ($65 per year of service from 5 to 30 years of service).

Under the University’s Restructuring Agreement with the Commonwealth, the Board may authorize compensation adjustments for faculty and University staff. However, the Board is not authorized to grant base salary increases for classified staff; only the General Assembly may do so.

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University of Virginia - Academic DivisionProjected Operating Uses - By Expenditure Category

1

Tui on and GFAppropria on

FTE Amount

2

Grants & Contracts,F&A

FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5

Local Sales, Services,Other

FTE Amount

6

Auxiliary

FTE Amount Total ‐ FTE Total ‐ Amount

FY CTCSCategory

2013‐R Faculty Salaries and benefitsStaff Salaries and benefitsWages and benefitsGTA/GRA

Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Transfers

Subtotal

MBU Totals

2014‐O Faculty Salaries and benefitsStaff Salaries and benefitsWages and benefitsGTA/GRA

Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Transfers

Subtotal

MBU Totals

1,779.0 240,727,410 801.6 80,002,202 84.9 11,766,313 403.9 61,393,448 30.0 3,444,230 107.7 12,457,900 3,207.1 409,791,503

3,000.2 193,156,252 604.4 42,112,370 198.5 14,916,640 333.2 21,317,383 154.9 9,166,787 570.8 35,078,387 4,862.0 315,747,819

0.0 26,888,681 0.0 15,516,332 1,374,519 0.0 13,268,305 1,297,254 9,399,040 0.0 67,744,131

168.1 10,895,643 310.2 14,461,709 1.0 51,222 27.9 1,430,935 0.7 31,364 507.8 26,870,873

4,947.3 471,667,986 1,716.1 152,092,613 284.5 28,108,694 765.0 97,410,071 185.6 13,939,635 678.4 56,935,327 8,576.8 820,154,326

0.0 680,141,372 0.0 112,802,107 0.0 30,559,590 0.0 45,982,309 18,001,459 106,907,269 0.0 994,394,106

9,518,199 0.0 25,658,596 13,903,763 0.0 55,106,964 19,325 0.0 104,206,846

0 0

‐550,124,058 0.0 ‐2,804,425 ‐2,496,193 ‐13,474,786 ‐15,882,994 0.0 ‐584,782,455

8,370,580 0.0 14,233,444 700,760 0.0 20,209,762 16,459,265 0.0 59,973,811

6,390,952 5,655,396 3,139,954 13,438,551 4,849 26,637,218 55,266,920

0.0 154,297,045 0.0 155,545,118 0.0 45,807,874 0.0 134,737,586 4,550,847 134,120,758 0.0 629,059,229

4,947.3 625,965,031 1,716.1 307,637,731 284.5 73,916,567 765.0 232,147,657 185.6 18,490,483 678.4 191,056,085 8,576.8 1,449,213,555

1,716.1 243,537,858 640.2 70,639,166 75.0 12,115,968 412.4 65,394,672 28.8 3,355,087 97.7 12,039,313 2,970.0 407,082,064

3,061.5 206,196,981 622.5 40,726,551 210.1 16,839,094 340.3 23,215,580 154.2 9,367,575 563.2 36,939,881 4,951.7 333,285,663

0.0 26,977,395 0.0 12,620,606 0.0 548,262 0.0 9,477,998 0.0 1,299,523 0.0 9,207,317 0.0 60,131,101

174.6 11,764,956 240.8 12,591,763 1.0 13,000 24.1 1,093,340 0.9 61,998 441.3 25,525,057

4,952.1 488,477,189 1,503.5 136,578,086 286.0 29,516,324 776.7 99,181,590 183.8 14,084,183 660.8 58,186,512 8,363.0 826,023,885

0.0 649,580,825 0.0 118,962,694 0.0 22,383,891 0.0 47,779,815 0.0 16,586,727 0.0 108,736,469 0.0 964,030,420

0.0 11,054,364 0.0 22,931,617 0.0 11,450,734 0.0 56,938,239 15,000 0.0 102,389,954

0.0 0 0.0 0

0.0 ‐552,460,542 0.0 ‐3,398,482 0.0 ‐2,891,977 0.0 ‐14,239,110 0.0 ‐15,994,833 0.0 ‐588,984,943

7,665,879 0.0 15,137,829 700,760 0.0 19,349,419 135,100 20,209,510 0.0 63,198,497

‐1,029,617 3,775,734 3,640,864 12,463,425 ‐97,500 27,076,327 45,829,233

0.0 114,810,909 0.0 157,409,392 0.0 35,284,272 0.0 136,530,898 0.0 2,400,217 0.0 140,027,473 0.0 586,463,161

4,952.1 603,288,099 1,503.5 293,987,478 286.0 64,800,595 776.7 235,712,488 183.8 16,484,400 660.8 198,213,985 8,363.0 1,412,487,045

25

OPERATING USES BY ACTIVITY The schedule of the Academic Division’s projected operating uses by activity on page 27 summarizes total expenditures by program: direct instruction, research, public service, academic support, student services, general administration, O&M of physical plant, scholarships and fellowships, and auxiliary/self-supporting. The following charts show the percentage of the total operating budget dedicated to each major activity:

2013-14 2012-13

E&G BUDGET E&G is a term used to describe operations that are directly related to the University's educational objectives, including the programs of direct instruction, research, public service, academic support, student services, general administration, and O&M 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 2013-14 direct instruction budget is $367.3 million, a $19.9 million or 5.7 percent increase over the 2012-13 revised forecast. The increased budget results from additional investments funded from tuition rate increases, incremental enrollments, the McIntire differential rate increase, the new first-year differential in the School of Engineering and Applied Science, and differential tuition for several graduate programs, as well as funds reserved to be deployed toward supporting direct instruction activities. The schools all expect to

utilize the incremental funds to invest in faculty and direct instructional support.

The University recommends the use of the Pratt Fund, a gift from John Lee Pratt that is intended “to supplement salaries of the professors of the Departments of Biology, Chemistry, Mathematics and Physics, to purchase equipment for these departments as suggested by the heads of the departments and approved by the President and the Board of Visitors, and to provide for scholarships in these departments for outstanding students." Mr. Pratt’s will provides further that these funds could be used "to support research in the School of Medicine and to provide scholarships for medical students." The will stipulates that the Pratt endowment reverts to Washington and Lee University if the University of Virginia does not comply with the provisions of the will. The original Pratt endowment has been split into two equal endowments, with 50 percent of the original principal assigned to the College of Arts and Sciences and the remaining 50 percent assigned to the School of Medicine.

Instruction

Research & PublicServ.

Academic Support

Student Services



Financial Aid

26.0%

21.3%

10.4%3.1%

5.4%

7.8%

7.2%

11.1%

4.5%3.2% Instruction

Research & PublicServ.Academic Support

Student Services



Financial Aid

Auxiliaries


Transfers

24.1%

22.1%

10.9%3.0%

6.1%

8.2%

7.2%

10.5%

4.1%3.8%

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University of Virginia - Academic DivisionProjected Operating Uses - By Activity

1

Tui on and GF

Appropria on

Fte Amount

2

Grants & Contracts,

F&A

Fte Amount

3


Fte Amount

4

Private Restricted

Fte Amount

5


Other

Fte Amount

6

Auxiliary

Fte Amount Total‐Fte Total‐AmountFY Subtotal for Program Name 1Program SortProgram Name

2013‐R 1 Direct Instruc on

1 Research

1 Public Service

1 Academic Support

1 Student Services

1 General Administra on

1 O&M of Physical Plant

E&G Programs Total

1 Scholarships & Fellowships

Student Financial Aid Total

8 Auxiliary/Self-Suppor ng

Auxiliary Enterprises Total

4 Internal Debt Service

Transfers

Transfers Total

MBU Totals

2014‐O 1 Direct Instruc on

1 Research

1 Public Service

1 Academic Support

1 Student Services



E&G Programs Total





4 Internal Debt Service

Transfers

Transfers Total

MBU Totals

1,858.3 276,747,088 23.4 3,177,366 27.2 8,291,297 314.2 57,883,137 2.6 1,367,114 2,225.7 347,466,002

85.9 24,350,103 1,473.9 222,681,242 8.9 2,438,838 182.9 35,549,036 31.2 1,408,251 1,782.9 286,427,469

44.3 5,705,004 66.4 10,251,170 1.0 846,193 72.3 11,333,416 28.9 5,176,645 212.9 33,312,428

898.2 106,951,992 100.1 16,776,861 25.9 7,879,826 120.0 23,642,414 85.7 3,227,190 1,229.9 158,478,283

300.4 35,389,052 17,003 17.5 3,401,179 12.3 2,323,942 6.4 2,072,512 336.6 43,203,687

351.5 39,904,104 42.2 6,215,001 197.9 31,231,737 42.8 6,351,413 28.5 5,052,937 662.8 88,755,191

1,408.7 111,662,124 10.1 2,971,652 6.0 2,589,982 4.5 1,583,792 2.3 152,560 1,431.6 118,960,110

4,947.3 600,709,465 1,716.1 262,090,295 284.5 56,679,051 749.0 138,667,149 185.6 18,457,209 7,882.4 1,076,603,169

10,494,034 0.0 25,658,596 13,396,802 0.0 55,096,964 28,425 0.0 104,674,821

10,494,034 0.0 25,658,596 13,396,802 0.0 55,096,964 28,425 0.0 104,674,821

16.0 4,735,231 678.4 147,959,602 694.4 152,694,833

16.0 4,735,231 678.4 147,959,602 694.4 152,694,833

8,370,580 0.0 14,233,444 700,760 0.0 20,209,762 16,459,265 0.0 59,973,811

6,390,952 5,655,396 3,139,954 13,438,551 4,849 26,637,218 55,266,920

14,761,532 0.0 19,888,840 3,840,714 0.0 33,648,313 4,849 43,096,483 0.0 115,240,731

4,947.3 625,965,031 1,716.1 307,637,731 284.5 73,916,567 765.0 232,147,657 185.6 18,490,483 678.4 191,056,085 8,576.8 1,449,213,555

1,849.7 293,495,584 23.1 3,256,197 28.7 10,378,025 315.1 59,145,063 1.6 1,068,434 2,218.1 367,343,303

90.2 17,755,548 1,284.7 213,937,245 9.6 1,534,270 185.2 34,778,376 35.2 1,415,874 1,604.8 269,421,313

40.3 4,819,282 57.3 9,440,479 1.0 405,761 80.7 12,090,527 31.7 4,763,225 211.0 31,519,274

887.1 98,437,898 82.9 15,839,057 21.7 4,982,110 117.4 25,195,226 80.7 2,860,453 1,189.8 147,314,744

317.0 35,822,720 17,003 15.3 3,215,853 12.4 2,211,169 6.0 2,052,360 350.7 43,319,105

344.8 32,645,201 45.5 6,785,945 203.9 26,223,371 42.9 6,385,388 26.7 4,215,695 663.7 76,255,600

1,423.0 103,119,238 10.1 2,866,372 6.0 2,618,847 4.1 1,585,488 2.0 70,759 1,445.1 110,260,704

4,952.1 586,095,472 1,503.5 252,142,298 286.0 49,358,237 757.7 141,391,237 183.8 16,446,800 7,683.2 1,045,434,044

0.0 10,556,365 0.0 22,931,617 11,100,734 0.0 56,928,239 0.0 101,516,955

0.0 10,556,365 0.0 22,931,617 11,100,734 0.0 56,928,239 0.0 101,516,955

19.0 5,580,168 660.8 150,928,148 679.8 156,508,316

19.0 5,580,168 660.8 150,928,148 679.8 156,508,316

7,665,879 0.0 15,137,829 700,760 0.0 19,349,419 135,100 20,209,510 0.0 63,198,497

-1,029,617 3,775,734 3,640,864 12,463,425 -97,500 27,076,327 45,829,233

6,636,262 0.0 18,913,563 4,341,624 0.0 31,812,844 37,600 47,285,837 0.0 109,027,730

4,952.1 603,288,099 1,503.5 293,987,478 286.0 64,800,595 776.7 235,712,488 183.8 16,484,400 660.8 198,213,985 8,363.0 1,412,487,045

27

For 2013-14, $3.8 million is recommended for the School of Medicine to provide direct research support. For the College of Arts and Sciences, $3.44 million will support the departments of Biology, Chemistry, Mathematics, and Physics in compliance with the terms of Mr. Pratt’s will. Research and Public Service The 2013-14 research and public service budget will decrease by $18.8 million or 5.9 percent as compared to the revised 2012-13 budget. This category includes both University and externally-funded 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, 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, Blandy Farm, and non-credit course offerings.

The Commonwealth’s expected investment in research of $6.7 million in 2013-14 is included in this program. Of this amount, $1.6 million has been set aside for the University’s highest science and technology priorities, $3.4 million has been allocated for cancer research in the School of Medicine, $1.0 million has been earmarked for the creation of an economic development accelerator, and $0.75 million has been allocated for focused ultrasound research. The 2012-13 revised budget includes nearly $6.5 million of unexpended funds carried forward from 2011-12. These represent one-time funds that are not repeated in the original 2013-14 budget. Academic Support The academic support program encompasses the libraries, academic computing, and academic administration. The $147.3 million budget for 2013-14 is a decrease of $11.2 million or 7.0 percent, primarily related to the inclusion of $8.0 million of carry forward balances in the revised 2012-13 budget. The $1.8 million reserve related to administrative fees withheld from incremental revenue resulting from enrollment,

new fees, and differential tuition is held in this program. 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 2013-14 student services budget is $43.3 million, which is an increase of $0.1 million or 0.3 percent from the revised 2012-13 budget. General Administration This category includes executive, financial, administrative, logistical, and fundraising activities. The 2013-14 general administration budget is $76.3 million, which represents a decrease of $12.5 million or 14.1 percent in 2013-14, primarily due to carry forward balances included in administrative reserves in the 2012-13 revised budget that do not occur in the original 2013-14 budget. When adjusted for the one-time carry forward balance, the 2013-14 budget is 0.1 percent less than the 2012-13 revised budget in this program.

O&M of Physical Plant The O&M program category includes all expenditures for maintaining and operating facilities, leasing space, and police and security, net of amounts charged to auxiliary enterprises and the Medical Center. The 2013-14 O&M budget of $110.3 million, including items held in reserve, is projected to decrease $8.7 million or 7.3 percent as compared to the 2012-13 revised budget. The decrease is attributable to the inclusion of carry forward balances in the 2012-13 revised budget.

STUDENT FINANCIAL AID The student financial aid budget, $101.5 million in 2013-14, includes graduate and undergraduate student scholarships, fellowships, and other forms of student assistance supported from state general funds, endowment income, gifts, and federal sources. This budget excludes loans, or aid provided directly to students by third parties. Aid funded from tuition is presented as a discount to tuition revenues earlier in this document.

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Financial aid awards to undergraduate students primarily are based on current federal methodology and packaged according to the principles of AccessUVa. 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. The 2013-14 financial aid budget includes funding of $7.6 million for AccessUVa from local funds and central unrestricted private resources. Additionally, the budget includes funding from central unrestricted private resources of $2.5 million for an undergraduate merit scholarship program, the University Achievement Awards.

AUXILIARY ENTERPRISES An auxiliary enterprise is an entity that exists to furnish goods or services to students, faculty, or staff and charges a fee to recover 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 2013-14, the auxiliaries will be charged an average of 6.2 percent of their operating expenditures. A total of $6.1 million will be recovered by central administration. In return, auxiliaries are credited with interest earned on their cash balances. Disbursements from auxiliaries are expected to total $213.8 million, including amounts to be transferred to reserves for renewal, replacement, and debt service. The 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. INTERNAL DEBT SERVICE The internal debt service category reflects debt service payments made by schools/units related to borrowings from the University’s internal bank. The 2013-14 budget includes internal debt service payments of $63.2 million, an increase of 5.4 percent over the revised 2012-13 budget of $60.0 million. This increase is primarily attributed to Housing and Residence Life, whose debt service payments will grow to accommodate the three new buildings opening in August 2013 (Lile-Maupin House, Tuttle-Dunnington House, and Shannon House). STAFFING The Academic Division projects a decrease of 214 FTE positions to 8,363 in 2013-14. An increase of 5 FTEs is expected from state and tuition sources. With decreasing federal research dollars, a decrease of 12.4 percent is expected in positions funded from grants and contracts. Positions funded from private sources are expected to increase by 0.9 percent, while positions funded from auxiliaries are expected to decrease by 2.6 percent. Of the 8,363 positions budgeted, 48 percent (4,034 positions) are involved directly in the primary programs of instruction, research, and public service.

(rounded to nearest FTE)

State

Grants & Contracts

Private

Auxiliary

Total

2012-13 Revised

4,947

1,716

1,235

678

8,577

2013-14 4,952 1,504 1,247 661 8,363 Change 5 (212) 12 (17) (214) % Chng 0.1% (12.4%) 0.9% (2.6%) (2.5%)

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MAJOR ACADEMIC AND ADMINISTRATIVE BUDGET OVERVIEWS The following pages (through page 120) provide an overview of each school and administrative/service center area. The overview includes a description of the unit’s operations and strategic direction; an explanation of the 2013-14 budget; and a summary of projects currently on the capital plan, as well as any anticipated changes. EXECUTIVE VICE PRESIDENT AND PROVOST Overview of Operations The Executive Vice President and Provost (EVPP) is the chief academic officer of the University of Virginia and is charged with overseeing the education, research, and public service activities of the schools of the University, the University’s libraries and museums, and a number of other academically-related units. In addition to the eleven schools and University Libraries, the EVPP has responsibility for Undergraduate Admissions, the Center for Liberal Arts, the Center for Politics, the Virginia Foundation for the Humanities, the Weldon Cooper Center for Public Service, the University Press, and the Shannon Center for Advanced Studies. The EVPP’s major responsibilities include: Appointing deans and overseeing their evaluations;

Working with deans and directors to maintain

excellence and realize the academic aspirations of the individual schools and of the University as a whole;

Serving as the chief personnel officer for faculty;

Managing the University’s academic budget, in cooperation with the president and the chief operating officer;

Promoting interdisciplinary and innovative approaches to education and research, as well as fostering diversity of faculty, students, and staff;

Developing and implementing a thoughtful vision

for the future of the University and its relationship to other societal, governmental, and economic institutions, and to society at large;

Overseeing global academic activities, including foreign study, Semester at Sea, Universitas 21, international exchange of scholars, and the promotion of international study; and

Overseeing academic planning, building on current

strategies for advancing academic programs and efficient resource allocations, and nurturing innovations in all programs.

Strategic Direction The major goals for the EVPP in 2013-14 include: 1. Recruit, retain, and develop academic personnel.

Conduct or oversee searches for senior academic leaders and advise the University president on appointments. Strengthen faculty recruitment and advancement with particular attention to recruiting, promoting, and retaining high-quality faculty from diverse backgrounds who demonstrate potential as outstanding scholars and who share a commitment to the University’s goals.

2. Work with senior leaders to set the University’s

academic priorities and align resources and technologies in service to the University’s Statement of Purpose and Goals. Academic program and curriculum review is integral to this work.

3. Advance the University’s core functions of

teaching, research, and service by supporting the work of the deans and fostering collaboration across schools and academic units, especially as related to the arts, international programs, science, and research.

4. Develop and sustain the infrastructure necessary

to support the University's academic mission, including management of data and data systems in service to faculty and students, effective use of academic space, and compliance with the Commonwealth’s higher education coordinating body and the University’s regional accrediting agency. Through the deans, supervise the work of personnel responsible for preparing (in collaboration with the Executive Vice President

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and Chief Operating Officer) all academic revenue and expenditure budgets.

The EVPP has oversight of all initiatives emanating from the 2007 strategic planning effort. Three of the six initiatives established are administered by the EVPP, who manages each respective program budget and is responsible for coordinating and advancing these priorities and affiliated core values. The following are overviews of those three initiatives. Jefferson Public Citizens (JPC) and the Student Experience: JPC is a comprehensive academic public service program that integrates students’ service and research experiences throughout their time at the University. The program deepens student learning by integrating academic and public service experiences and seeks to inspire students to act as engaged citizens through community partnerships, research service projects, and scholarly reflection. The program prepares students to work with local, national, and international communities to effect positive change in the world. Objectives are attained through development of University courses and undergraduate research initiatives that promote community-based projects and engagement. Institute for Faculty Advancement and Academic Leadership includes the following components: 1. The Leadership in Academic Matters Program,

which prepares faculty to become the next generation of department heads, directors, and other University administrative leaders;

2. The Professors as Writers Program, conducted by the Teaching Resource Center, provides support to faculty in their academic and professional writing;

3. Program support for the Vice Provost for Faculty Advancement to sponsor a faculty advancement lecture series and workshops;

4. The Institute for Leadership Excellence in Academic Departments, which targets faculty serving as department chairs or directors of academic centers, provides workshops and other programs to facilitate discussion of common cross-departmental issues, and encourages progress towards a diverse faculty and staff; and

5. The Teaching Technology Support Partners Program, which provides the opportunity for qualified graduate students to work with faculty

to foster integration of technology and innovation into their teaching.

Global Affairs: The Office of Global Affairs advances U.Va.’s international research, learning, and outreach to prepare students, the University, and the Commonwealth to thrive in an interconnected world. Global Affairs anticipates support for several new initiatives in 2013-14 including: 1. Creating a new cross-school Global Studies

major that will enhance international teaching, learning, and research.

2. Establishing a full time University representative in China to help manage new programs, admissions, development, engagement with alumni and friends, and serve as a potential base for distance learning programs.

3. Identifying and nurturing a small number of programs of outstanding cross-disciplinary or cross-school international research that are areas of excellence for the University. Funding would be used to build synergy and prime exceptional projects and grants. These programs, chosen in an internal and competitive request for proposals, would be anchors for a revitalized center for international research.

4. Developing an international internship program that significantly expands opportunities for experiential learning abroad, particularly by drawing on the support of alumni and parents.

The Center for International Studies will continue to serve as a focal point for University-wide global research and education. Critical to the Center’s mission is the formation of interdisciplinary faculty efforts. The Center supports: research initiatives, working groups, and seminars that address significant international issues; development of new courses with a significant international/global perspective or which develop “global classrooms” involving collaboration with similar courses at universities abroad; visiting international scholars and practitioners whose presence on Grounds will contribute to the promotion of research and learning; and individual faculty and graduate student projects that require supplemental aid because of their international scope. 2013–14 Operating Budget The EVPP is currently funded through a traditional centralized budget target, as well as self-generated private resources, grants and contracts, and sales and services activities for the University Press.

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As shown on the pie chart below, excluding the schools and the library, for 2013–14, 60 percent of the EVPP’s operating budget is from tuition and state general funds. Private funds (endowment distributions and gifts) represent 18 percent of funding. Grants, contracts, and F&A constitute 17 percent, while sales and services make-up 5 percent.

Excluding the schools and the library, the EVPP’s 2013-14 operating budget (see the following page) is $54 million, primarily allocated to faculty and staff compensation (62 percent) and academic support activities. The University proposes to allocate $48,800 to augment the ROTC program base budget. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Including the schools and the library, the operating budget for all areas reporting to the EVPP will be $877.7 million in 2013–14. Capital Plan Capital projects under the EVPP area which are not directly related to the schools or the library include: 1) the Fralin Art Museum Addition ($28 million in gifts), for which a concept design and fundraising package is being prepared, and 2) the Contemplative Sciences Center ($13.68 million in gifts), which has been proposed for donor gift funding.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: <All>

Excluding Schools & Library

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Transfers

Subtotal

MBU Totals

98.0 11,292,303 22.5 1,919,084 11.0 1,326,142 10.3 1,358,621 6.1 602,934 0.3 32,740 148.2 16,531,824

138.5 8,744,779 24.4 1,685,951 8.7 582,700 13.0 889,271 5.5 306,387 13.0 721,152 203.1 12,930,240

‐ 3,838,069 0.0 1,124,637 ‐ 123,399 0.0 508,016 ‐ 9,000 ‐ 11,082 0.0 5,614,203

9.5 55,550 2.2 49,777 1.0 34,175 0.1 11,066 ‐ ‐ ‐ ‐ 12.8 150,568

245.9 23,930,701 49.1 4,779,449 20.7 2,066,416 23.4 2,766,974 11.6 918,321 13.3 764,974 364.1 35,226,835

‐ 17,202,572 0.0 2,084,229 ‐ 7,307,127 0.0 2,564,477 ‐ 658,879 ‐ 1,036,930 0.0 30,854,215

‐ 16,700 0.0 64,667 ‐ 514,161 0.0 400,386 ‐ 10,000 ‐ ‐ 0.0 1,005,914

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐520,200 ‐ ‐ ‐ ‐520,200

‐ ‐ ‐ 3,259,159 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,259,159

‐ 90,084 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 90,084

17,309,356 0.0 5,408,055 7,821,288 0.0 2,964,863 148,679 1,036,930 0.0 34,689,171

245.9 41,240,058 49.1 10,187,504 20.7 9,887,704 23.4 5,731,837 11.6 1,067,000 13.3 1,801,904 364.1 69,916,007

96.3 9,774,500 19.8 1,726,954 11.2 1,330,399 6.8 1,155,235 5.8 478,000 0.4 38,953 140.3 14,504,041

143.3 8,792,747 17.5 1,418,939 7.7 538,148 15.1 1,045,006 6.3 363,846 10.6 594,271 200.4 12,752,957

0.0 4,167,718 ‐ 741,531 0.0 62,000 ‐ 370,163 ‐ 61,000 0.0 11,677 0.0 5,414,089

10.5 619,850 2.3 60,000 1.0 13,000 0.1 4,770 ‐ ‐ ‐ ‐ 13.8 697,620

250.1 23,354,815 39.5 3,947,424 19.9 1,943,547 22.1 2,575,174 12.0 902,846 11.0 644,901 354.5 33,368,707

0.0 9,078,360 ‐ 1,301,060 0.0 1,933,349 0.0 2,219,070 0.0 678,254 0.0 962,017 0.0 16,172,111

0.0 12,000 ‐ 50,785 0.0 352,200 0.0 440,800 ‐ 15,000 ‐ ‐ 0.0 870,785

‐ 197,590 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 197,590

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐507,000 ‐ ‐ 0.0 ‐507,000

‐ ‐ ‐ 4,155,522 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,155,522

‐ ‐72,334 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐72,334

0.0 9,215,616 5,507,367 0.0 2,285,549 0.0 2,659,870 0.0 186,254 0.0 962,017 0.0 20,816,674

250.1 32,570,431 39.5 9,454,791 19.9 4,229,096 22.1 5,235,044 12.0 1,089,100 11.0 1,606,919 354.5 54,185,381

33

COLLEGE AND GRADUATE SCHOOL OF ARTS & SCIENCES Overview of Operations The College and Graduate School of Arts & Sciences is the largest of the University of Virginia’s eleven schools and is the institution’s intellectual core. Offering more than 50 undergraduate majors and concentrations and more than two dozen graduate programs, Arts & Sciences spans the liberal arts, stretching from the study of the birth of the universe to the latest scientific and technological advances and encompassing the literatures and languages, history and arts, economics, and politics of the world's cultures. The College and Graduate School comprise more than 11,000 students and approximately 700 full-time regular faculty members.

Strategic Direction The six strategic directions described below, while comprehensive in scope, present specific guidance and focus for the allocation of resources, faculty and staff hiring priorities, and fundraising energies over the next five to seven years, as well as a framework through which to organize fundraising opportunities. The actions proposed here are intended as attainable initial steps nested within a 10 to 15-year repositioning of the College as an eminent research institution also widely acknowledged for the excellence of its undergraduate teaching. 1. Maintain core excellence in undergraduate

education. The College has long been distinguished in offering undergraduates an intimate, rigorous, and broad undergraduate experience amidst the benefits and energy of a major research university. The breadth of the undergraduate offerings and the commitment of faculty to creating genuine, life-altering relationships with their students define the traditional core of the College’s excellence. Preserving the University’s standing as a major research university that takes undergraduate

education seriously requires that students continue to interact with senior faculty, take smaller courses, and explore and connect within a broad array of curricular offerings. Key areas of focus by the College include the establishment of the new Pavilion Seminars for undergraduates; opportunities for undergraduate students to engage in meaningful research; increasing undergraduate participation to take advantage of the substantial improvements to arts-related facilities; and bolstering collaborative research and exchange opportunities with other universities around the world. The College began a comprehensive review of its general education curriculum in 2012-13.

2. Enable faculty growth. Although the need is broad, the College must focus resources on faculty to realize progress and innovation across the disciplines by protecting established strengths in selected programs, building up the sciences, and supporting emerging cross-disciplinary clusters of faculty distinction. Doing so both protects and enhances the core of the College’s mission: the excellence and rigor of the undergraduate educational experience and the eminence and research productivity of the faculty. Academic year 2012-13 marks the low point in a multi-year reduction in the size of the tenured and tenure-track faculty, at 536. Faculty size will begin recovering in 2013-14, with a plan to add at least 60 lines by 2018-19 in addition to regular replacements for retirements and other departures.

3. Establish and expand collaborative and multidisciplinary research in targeted areas well positioned to distinguish the College. Targeted areas include global environmental challenges; life sciences in the post-genomic era; human life span development; cosmic origins and astrochemistry; the Institute for Global Humanities; and quantitative collaborative. The College is also exploring initiatives in the computational sciences. These focus areas will continue to serve as an important factor in the strategic allocation of faculty lines and other resources in the years ahead.

4. Secure sufficient and regular funding to provide

appropriate start-up packages to new faculty to attract the strongest candidates and enable them

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to mount aggressive research programs. The expansion of the size of the faculty, as well as the need to replace growing numbers of retiring faculty, entails substantial financial costs in terms of start-up packages, which often exceed $750,000 per faculty member in the sciences, and the need for expanded laboratory space to support emerging research programs. Start-up packages often involve lab renovations, equipment purchases, funding for graduate and postdoctoral positions, and summer salary support. Such investment is an essential pre-requisite to the College’s priority goal of enhancing the stature of the sciences at the University, but it also has the potential of returning resources to the College in the future as faculty research programs develop and begin competing for federal and other sponsored research awards, which will increase overhead returns to the University, the College, and its departments.

5. Support research and teaching capacity through

staffing, instrumentation, and facilities. Achieving success in the College’s strategic priorities requires investment in facilities, equipment and instruments, and technical and administrative support. Ensuring access to research instrumentation and lab facilities in the sciences, as well as studio and performance space in the arts, presents a critical prerequisite to recruiting excellent faculty and students to College programs and making progress toward strategic initiatives. This strategic initiative also entails re-envisioning some of the College’s classroom, laboratory, and common space to optimize opportunities to integrate technology into learning. Securing adequate funding for the renovation of Gilmer Hall and the Chemistry Building are critical near-term priorities.

6. Strengthen graduate education. Graduate

students work at the vanguard of research and innovation in the twenty-first century university. Their laboratory work and dissertations form the backbone of research innovation around the world. Talented graduate students come to the University brimming with new energy and new ideas, assisting faculty in their scholarly efforts, and emerging as distinguished scholars themselves.

Achieving these aims requires that the College balance aspirations with core foundational needs, such as:

Managing undergraduate enrollment growth effectively to ensure the continued excellence of the undergraduate experience;

Achieving competitive levels for faculty salaries;

Transitioning through the anticipated retirements of a number of eminent faculty to maintain and enhance the strength of the faculty; and

Ensuring the right amount, quality, and types of

classroom, laboratory, and office space to support planned growth and educational initiatives.

The faculty growth due to planned enrollment growth, along with heightened retirement turnover and the normal turnover associated with departures, may require more than 200 faculty searches in the next seven years. This volume of hiring over a relatively brief period presents both challenge and opportunity, and such hiring will transform the College’s faculty and set the tone and foundation for decades. 2013-14 Operating Budget The College is funded through a traditional centralized budget target and self-generated grants, contracts, and private resources. For 2013-14, 61 percent of the College’s operating budget is from tuition and state general funds, while grants, contracts, and F&A recoveries constitute 20 percent and provide an important source of revenue for the College. Private funds (endowment distributions, gifts, and transfers from the College Foundation) represent 19 percent of funding.

The following graph demonstrates the trend in grant support, as well as the diversity of sponsors.

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The following graph shows a similar trend in F&A cost recoveries generated by the school.

The College’s 2013-14 operating budget (see page 38) is $185.0 million, with compensation and graduate fellowships accounting for 85 percent of the budget, including faculty compensation (50 percent), GTA/GRA stipends and graduate fellowship support (20 percent), and staff salaries and wages (15 percent). The College’s budget is allocated almost entirely toward academic core activities (teaching, research, and service), with very little toward administrative services. The majority of administrative services are incurred in the central University budgets. The College’s 2013-14 operating budget includes an allocation of $1.5 million related to fall 2013 enrollment growth. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. The College’s 2012-13 revised operating budget includes $3.5 million of “deep contingency reserve” for the College plus $4.4 million of other non-base reserves related to future initiatives and commitments. These funds are not reflected in the 2013-14 operating budget per University practice, but the College expects the reserves stated above to carry forward into 2013-14 at

similar amounts and be reflected in the 2013-14 revised operating budget. Recruiting and retaining faculty will be a continued emphasis, requiring additional investments in compensation and start-up packages. The following graph demonstrates the average College faculty salary compared to the 60th and 75th percentile of AAU peers.

The following chart provides the student:faculty ratio over the past several years.

Capital Plan Construction is ongoing for the New Cabell Hall Renovation, to be completed in two phases by September 2014. Currently, the highest priority project not in construction is the renovation of Gilmer Hall and the Chemistry Building, the College’s longstanding workhorse buildings in the sciences. The renovations are on the Major Capital Projects Plan at $134 million, proposed to be funded in full from state general funds. The 2013 General Assembly provided $1.8 million for pre-planning (programming and concept design phase) of this critical project.

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Projects on the long-term capital program include the construction of a new music building ($59.5 million); construction of a drama building addition ($25.5 million); renewal of Old Cabell Hall ($65), expansion of the Anheuser-Busch Coastal Research Center ($6 million); and a Science and Engineering Teaching and Research Facility shared with the School of Engineering and Applied Science ($147.3 million).

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R2010 MBU: AS-College of Arts & Sciences

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals

628.1 72,868,899 93.6 8,929,439 15.1 2,061,113 113.4 11,503,465 0.9 55,000 ‐ ‐ 851.1 95,417,916

176.3 11,249,951 44.6 2,348,395 17.0 851,754 59.9 2,995,282 0.7 34,000 ‐ ‐ 298.6 17,479,382

‐ 5,465,251 ‐ 4,639,820 ‐ 466 ‐ 1,313,636 ‐ 1,600 ‐ ‐ ‐ 11,420,773

115.9 8,440,613 47.6 3,283,683 ‐ ‐ 2.0 135,656 0.3 19,863 ‐ ‐ 165.7 11,879,815

920.3 98,024,714 185.8 19,201,337 32.1 2,913,333 175.3 15,948,039 1.9 110,463 1,315.4 136,197,886

‐ 9,850,535 ‐ 13,204,125 ‐ 1,597,663 ‐ 5,955,930 ‐ 1,922,753 ‐ ‐ ‐ 32,531,006

‐ 14,169,629 ‐ 3,493,179 ‐ 1,659,995 ‐ 6,396,562 ‐ 3,200 ‐ ‐ ‐ 25,722,565

‐ ‐231,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐775,253 ‐ ‐ ‐ ‐1,006,253

‐ 13,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13,000

23,802,164 16,697,304 3,257,658 12,352,492 1,150,700 57,260,318

920.3 121,826,878 185.8 35,898,641 32.1 6,170,991 175.3 28,300,531 1.9 1,261,163 1,315.4 193,458,204

621.6 68,024,323 95.0 9,053,720 13.9 2,105,166 127.8 13,039,950 0.2 11,000 ‐ ‐ 858.5 92,234,159

183.0 11,814,075 44.9 2,365,400 20.6 1,028,214 64.8 3,240,155 ‐ 55,927 ‐ ‐ 313.3 18,503,771

‐ 2,908,361 ‐ 4,618,801 ‐ ‐ ‐ 1,302,521 ‐ 65,407 ‐ ‐ ‐ 8,895,090

115.0 8,360,657 46.8 3,269,400 ‐ ‐ 2.1 146,428 0.1 6,000 ‐ ‐ 164.0 11,782,485

919.7 91,107,416 186.6 19,307,321 34.4 3,133,380 194.8 17,729,054 0.3 138,334 1,335.8 131,415,505

‐ 6,608,618 ‐ 13,204,000 ‐ 779,644 ‐ 6,478,297 ‐ 1,586,592 ‐ ‐ ‐ 28,657,151

‐ 15,757,224 ‐ 3,493,000 ‐ 910,000 ‐ 5,776,924 ‐ ‐ ‐ ‐ ‐ 25,937,148

‐ ‐221,854 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐770,364 ‐ ‐ ‐ ‐992,218

‐ 19,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 19,000

22,162,988 16,697,000 1,689,644 12,255,221 816,228 53,621,081

919.7 113,270,404 186.6 36,004,321 34.4 4,823,024 194.8 29,984,275 0.3 954,562 1,335.8 185,036,586

38

CURRY SCHOOL OF EDUCATION Overview of Operations For the Curry School of Education, the past six years have been a time of transition, consolidation, and investment that positions the School well for the coming years. Since 2007, Curry has, among many other things: Established three new research centers and

become host to a national association;

Restructured its doctoral programs to better prepare graduates for faculty and research careers;

Consolidated programs and limited graduate

admissions to be more selective and competitive for top graduate students;

Strengthened interdisciplinary partnerships with

the Darden School, the Batten School, the College of Arts & Sciences, and others;

Converted one of its two undergraduate

programs to a four-year, direct-admit program; Begun growing its undergraduate programs with

a goal of having more balanced enrollments across all degree levels;

Begun offering online courses to select groups of

students;

Reinstated and refined its faculty governance model to ensure that the academic interests of the School are the foremost consideration in planning and decision making; and

Begun an annual faculty-driven process of

developing academic and resource plans that form the basis of school-wide enrollment management, budget development, and faculty hiring plans.

Curry has benefitted from these changes, jumping nearly 10 positions – from 31st to 22st – in national rankings, adding to the number of its top-ranked graduate programs, recruiting and hiring the very top faculty candidates, and driving the recognition of the University as one of the top three institutions in the nation that influence education policy.

Strategic Direction Last year, Curry set out four strategic foci for the years 2012-17: enrollment, research, innovation, and resources. As evidenced below, the School’s strategic direction supports the University’s strategic direction as outlined by President Sullivan’s goals and the preliminary work of the University’s efforts to develop a new strategic plan. In developing and refining its strategic direction, Curry has paid close attention to the needs of the University and to the Commonwealth as it strives to meet its obligations under the Higher Education Restructuring Act as outlined in SCHEV’s institutional performance standards and the goals of the 2011 Higher Education Opportunity Act. Enrollment Curry began the 2012-13 academic year with its first class of directly admitted first-year undergraduate students, its first fully-online graduate programs, its first dual-degree program with another professional school (Darden), and its full ownership of Curry courses and degree and certificate programs at off-Grounds sites. Enrollment trends through 2011-12 are shown below.

For the first time ever, Curry’s students now span the full range of student experiences from first-year undergraduates to Ph.D. candidates and from full-time students in residence in Charlottesville to adult professional learners throughout the Commonwealth and, increasingly, the world. Over the next five years, Curry will: Ensure the School has adequate faculty expertise

and administrative infrastructure to support high-quality programs, both on- and off-Grounds;

Develop student marketing, recruitment, and advising expertise to enroll top students at all levels;

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Refine and expand faculty-driven academic planning processes to ensure that multi-year enrollment and academic plans can drive decision making and resource allocation within the School and in its interactions with others.

Develop functions and processes that ensure course sizes and schedules, as well as faculty workloads, are high quality, efficient, and interdisciplinary;

Launch a direct-admit undergraduate program in youth and social change;

Work with other schools of the University to anchor a Grounds-wide collaboration in STEM education at U.Va., in preK-12 schools and school divisions, and in community colleges;

Develop more courses and programs for delivery

to select audiences online; Update Curry’s largest and most highly regarded

program, Teacher Education, to be more evidence-based and innovative and competitive for top students;

Streamline master’s degree programs while

maintaining their rigor and quality so that undergraduates earn master’s degrees in the “3+1” model, and postgraduate students can complete them in as little as 12 months;

Increase capacity to respond to requests for expertise in teacher preparation and professional development across preK-12 education;

Coordinate enrollment growth to ensure that the experiences of students are not compromised and that growth can be supported and sustained;

Work with the Law School to create and launch a

dual MEd/JD degree program; and

Revise expectations regarding doctoral students to include an increased role in instruction to support enrollment growth and provide doctoral students valuable teaching experiences.

Research As demonstrated in the following graph, Curry has had great success over the past five years in growing its research base. Between 2005-06 and 2011-12, Curry has increased its research support by over 30 percent and has been able to add approximately 30

FTE faculty and staff, the majority of whom are supported by external funding.

As previously noted, Curry has established three new research centers within the past five years and has restructured its doctoral programs to be more research-focused. Curry also consolidated its four clinical centers into a comprehensive clinical enterprise that addresses a wide range of client needs, from reading remediation to speech and hearing disorders and autism spectrum disorder. Curry faces enormous challenges in sustaining and growing its research base and integrating its research into academic programs and faculty innovation, as much of the research Curry performs occurs at off-Grounds sites, away from most faculty and students, and at reduced F&A rates. Overall F&A cost recoveries generated by Curry over the past 10 years are shown below.

Competitive start-up packages for new faculty are becoming more expensive. Curry must update the infrastructure for research administration to ensure that faculty are not encumbered by bureaucracy when proposing and conducting research and that research activities are in compliance with federal law and sponsors’ regulations. Finally, Curry must better coordinate its various research activities, particularly

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those with other schools and other institutions, to ensure that its research program is comprehensive, well-planned, appropriately resourced, and of consistently high quality; that faculty, particularly new hires, have adequate opportunity to develop their individual portfolios; and that all of the School’s research is represented in Curry’s various doctoral programs. Over the next five years, Curry will: Develop a school-wide research center under the

lead of Curry’s new Associate Dean for Research and Faculty Development, and consolidate and add to existing research administrators to better coordinate Curry’s various research activities;

Shift the oversight of research administration from departments to research centers (including the new school-wide center) and flow F&A returns to the centers to support research administration needs;

In collaboration with the University Library and other schools, continue to develop an initiative to establish U.Va. as a model of providing advanced data services and mentoring related to research in the social sciences;

Collaborate to identify space for research activities to take place on-Grounds, in closer proximity to faculty and students, and to develop a multi-year research space plan;

Develop a multi-year plan for the use of indirect

cost recoveries to fund school- and department-level research administration and infrastructure and to create investment and incentive funds; and

Identify funding for research centers to become self-sustaining.

Innovation Curry has long recognized that much of the good work of its faculty and students languishes on shelves, in file cabinets, and on hard drives, while the problems of society that could be addressed by this work are allowed to persist and grow. As such, it is not different than any other school of education. Changing this status quo is an opportunity to lead and to distinguish the University. This shift to impact and scale requires a capacity for innovation, networking, and technology transfer that serves education markets and constituencies.

Curry will make the innovation process for faculty easier and more transparent and will grow an entrepreneurial spirit throughout its and the University’s faculty ranks as Curry implements the following key initiatives over the next five years: Establish and grow an auxiliary sales and

services unit to foster, incubate, develop, and market innovations with the potential to have broad and significant impact in addressing problems in education;

In collaboration with University partners, create a working model for how best to streamline technology transfer and commercialization processes to more easily allow faculty to develop, test, and market their innovations;

Develop business plans that support and structure innovation in a way that is consistent with Curry’s and the University’s mission and strategic vision;

Work with the Curry School Foundation and

venture philanthropists to create a system of investments and incentives that provide start-up funds for innovation and that incent faculty to move their work from discovery to creation and to meaningful and significant change; and

Support a network of education reform innovators from the public and private sectors that serves to stream new ideas and tools into education systems in need of solutions and the support to implement with fidelity, and that establishes the Charlottesville region as a center for education innovation.

Resources As has been demonstrated over the last five years – a period of time when Curry’s all-funds budget has grown from $25 million to $35 million despite years of general fund budget reductions – Curry is capable of generating additional revenue to support its strategic vision. Curry has great potential to expand enrollment-related revenues both in on-Grounds undergraduate and master’s courses and programs and in off-Grounds and online degree and certificate programs; to grow research and clinical revenues and revenues from existing and new sales and services activities such as summer camps, professional conferences, and professional development workshops; and to create entirely new revenue streams from faculty innovations that are brought to market.

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Curry must balance these opportunities with a realistic analysis of sustainability, opportunity cost, and fidelity to mission, along with the need to be accountable to the University for the full cost of its operations. While much of what Curry plans to do with regard to resources is woven throughout the initiatives already listed above, Curry will also: Continue to develop and refine administrative

infrastructure and expertise for working in an activity-based environment to best optimize Curry’s potential to meet its mission and to be a responsible and significant part of fulfilling the University’s mission and strategic direction;

Continue to develop and refine a comprehensive system of multi-year planning to effectively manage and coordinate existing and new revenue streams and cost structures with the goal of achieving financial self-sufficiency, increasing quality, and maintaining appropriate levels of reserves;

Continue phasing in plans to move all sales and

services units to a “full-cost” model of operations through increases in rates, a three-year phase-in of G&A recoveries, and a five-year phase in of project reserves;

Work with central administrators and other

schools to ensure that Curry has, and will continue to have, enough space to meet teaching and service missions along with its research mission; and

Serve as a model for the rest of the University of

a faculty-driven approach to resource planning that works cohesively and proactively with faculty-driven academic planning.

2013-14 Operating Budget Curry is funded through a traditional centralized target budget, as well as self-generated grants, contracts, and private resources. For 2013-14, 52 percent of Curry’s operating budget is from tuition and state general funds. Grants, contracts, and F&A constitute 36 percent. Private funds (endowment distribution, gifts, and transfers from the Curry Foundation) represent 6 percent of funding.

The School’s 2013-14 operating budget (see page 44) is $38.3 million. The primary spending initiatives are faculty compensation (41 percent), staff salaries and wages (23 percent), and GTA/ GRA stipends and graduate fellowship support (14 percent). Curry’s 2013-14 operating budget includes an allocation of $638,810 related to fall 2013 enrollment growth and a target allocation of $305,029 related to transfer of the SCPS summer education programs. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. The below graph demonstrates the average Curry faculty salary as compared to the 60th and 75th percentile of AAU peers.

Capital Plan Curry’s only project on the Major Capital Projects Plan is the $23.7 million renovation of Ruffner Hall, which is financed by the state and which began construction in January 2013. Completion is expected in the summer of 2014 with the building available for full use before fall semester 2014. Curry continues to engage central administrators in a conversation about building on-Grounds, general-purpose research space that can be shared by “dry-lab” researchers throughout the University. Should this not be a possibility, Curry would like to continue discussions of taking over the “Dell Buildings”

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proximate to Ruffner Hall after the New Cabell Hall and Ruffner Hall renovations are complete, to use for research space.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1640 MBU: CU-Curry School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Subtotal

MBU Totals

83.5 9,643,372 53.0 5,148,002 0.3 190,073 4.9 826,080 3.4 410,510 ‐ ‐ 145.1 16,218,037

48.3 3,276,486 23.5 1,595,499 0.7 123,970 ‐ ‐ 3.5 186,914 ‐ ‐ 76.0 5,182,869

‐ 1,317,075 ‐ 1,221,301 ‐ 9,574 ‐ 48,000 ‐ 581,390 ‐ ‐ ‐ 3,177,340

12.5 482,399 8.1 451,599 ‐ 17,047 ‐ ‐ ‐ ‐ ‐ ‐ 20.6 951,045

144.3 14,719,332 84.6 8,416,401 1.0 340,664 4.9 874,080 6.9 1,178,814 241.7 25,529,291

‐ 2,738,617 ‐ 5,375,800 ‐ 366,461 ‐ 191,386 ‐ 1,344,216 ‐ ‐ ‐ 10,016,480

‐ 2,679,552 ‐ 1,026,300 ‐ ‐ ‐ 518,889 ‐ ‐ ‐ ‐ ‐ 4,224,741

‐ 14,442 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14,442

‐ ‐150,300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐118,400 ‐ ‐ ‐ ‐268,700

‐ ‐ ‐ ‐ ‐ ‐ ‐ 208,500 ‐ ‐ ‐ ‐ ‐ 208,500

5,282,311 6,402,100 366,461 918,775 1,225,816 14,195,463

144.3 20,001,643 84.6 14,818,501 1.0 707,125 4.9 1,792,855 6.9 2,404,630 241.7 39,724,754

89.6 9,279,275 49.5 4,803,701 2.6 268,346 4.8 815,311 4.4 492,088 ‐ ‐ 150.7 15,658,721

52.3 3,582,369 23.8 1,567,801 ‐ ‐ 2.7 184,501 3.2 206,555 ‐ ‐ 81.9 5,541,226

0.0 1,694,792 ‐ 1,101,101 ‐ ‐ ‐ 39,000 0.0 513,493 ‐ ‐ 0.0 3,348,386

12.3 470,999 7.5 417,700 ‐ ‐ ‐ ‐ 0.8 55,998 ‐ ‐ 20.5 944,697

154.1 15,027,435 80.7 7,890,303 2.6 268,346 7.5 1,038,812 8.3 1,268,134 253.1 25,493,030

0.0 2,119,307 ‐ 4,909,401 0.0 4,144 0.0 202,000 0.0 1,286,885 ‐ ‐ 0.0 8,521,737

0.0 2,687,807 ‐ 985,500 ‐ ‐ 0.0 598,000 ‐ ‐ ‐ ‐ 0.0 4,271,307

0.0 15,215 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 15,215

0.0 ‐150,300 ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐105,000 ‐ ‐ 0.0 ‐255,300

‐ ‐ ‐ ‐ ‐ ‐ ‐ 208,500 ‐ ‐ ‐ ‐ ‐ 208,500

0.0 4,672,029 5,894,901 0.0 4,144 0.0 1,008,500 0.0 1,181,885 0.0 12,761,459

154.1 19,699,464 80.7 13,785,204 2.6 272,490 7.5 2,047,312 8.3 2,450,019 253.1 38,254,489

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DARDEN SCHOOL OF BUSINESS Overview of Operations The Darden School of Business improves the world by developing and inspiring responsible leaders and by advancing knowledge. Darden follows a three-pronged approach to achieving its mission: student-centered learning, thought leadership, and active engagement with the business community. The school offers a Master of Business Administration (MBA) in three formats: a traditional residency-based program (638 students anticipated in 2013-14), an Executive MBA (118 students anticipated in 2013-14), and a Global Executive MBA (59 students anticipated in 2013-14). In addition, Darden has a small cohort of PhD students (6 students anticipated in 2013-14). The overall trend in headcount enrollment is shown below. The school also offers executive education programs through the Darden School Foundation.

Strategic Direction Darden’s goals for the next year continue to build on the school’s “Six Pillars” strategy: Top Students, Top Programs, Top Faculty/Staff, Top Infrastructure, Top Brand, and Top Resources, with emphasis on the globalization initiative. Darden believes that becoming a more globally relevant school is critical to sustain its top standing as a graduate business school. During the 2011-12 academic year, Darden launched a Global Executive MBA program. In the 2013-14 academic year, the school’s goal is to grow this program, continuing the development of a globally relevant curriculum and increasing Darden’s international standing through branding and outreach. In 2012-13, Darden also launched two MOOCs (Massive Open Online Courses). Pending the successful outcomes of the courses, Darden plans to continue to offer future courses in this format. Additionally, Darden is in the process of recruiting several academic faculty to manage faculty retirements and transitions.

The following graph shows the trend in student: faculty ratio at Darden.

2013-14 Operating Budget Financial self-sufficiency was first endorsed by the Board of Visitors in 1995 and formalized by memorandum of understanding in 2001. As a financially self-sufficient school, Darden retains its tuition revenues, receives a subsidy for each in-state student of $2,500 (which represents 50 percent of the differential between in-state and out-of-state tuition), and is responsible for generating sufficient revenues to cover all of its operating and capital expenditures. Under self-sufficiency, other than the in-state student subsidy ($273,000 in the 2013-14 budget), the only central allocations to Darden are $65,000 from state general funds for financial aid to in-state students and $40,000 from private funds for financial aid. Approximately 66 percent of the school’s operating budget is funded from tuition; 32 percent from endowment distributions, gifts, and transfers from the Darden School Foundation; and the remainder from other sources.

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Darden’s 2013-14 operating budget (see the following page) is $74.0 million, with approximately 52 percent spent on faculty and staff compensation. The 2013-14 budget provides for a 4.75 percent average increase for teaching faculty and a 3.0 percent average salary increase for administrative faculty and staff. Darden continues to face competitive pressures among its peers with regards to faculty and staff compensation, as demonstrated on the below graph showing the average Darden salary versus the 60th and 75th percentile of AACSB peers.

The challenge is compounded by the wave of faculty retirements Darden anticipates in the next five years, as the average cost of replacement faculty members is expected to be higher. Darden continues to explore phased retirement arrangements. Student financial aid and scholarships comprise approximately 11 percent of budgeted expenditures in 2013-14. Darden will continue to invest in scholarships to attract top students, hire four new faculty to fill vacant and retiring faculty positions, and sustain investments related to the newly launched Global Executive MBA program. Darden is proposing three new staff, but will not pursue these hires until there is greater certainty about the school’s economic outlook for 2013-14. Under the self-sufficiency agreement, Darden is directly responsible for building maintenance and utilities. In addition, the School returns 10 percent of tuition and fees ($4.1 million in the 2013-14 budget) to the University to cover overhead expenses. Remaining budgeted expenses include library collections, equipment, and travel. Capital Plan Darden does not have any capital projects on the Major Capital Projects Plan.

As a self-supporting school, Darden is required by the Board of Visitors Capital and Operating Reserves Policy to have operating reserves equivalent to three months of operating expenses. Per the same policy, Darden must demonstrate annual capital expenditures or contributions to capital reserves of at least 1.5 percent of replacement value of buildings and equipment. Darden meets both requirements.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1825 MBU: DA-Darden School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category

2013‐R Faculty Salaries and benefitsStaff Salaries and benefitsWages and benefits

Subtotal

OTPS

Financial Aid


Transfers

Subtotal

MBU Totals

2014‐O Faculty Salaries and benefitsStaff Salaries and benefitsWages and benefits

Subtotal

OTPS

Financial Aid

Central Assessment


Transfers

Subtotal

MBU Totals

80.0 17,247,878 ‐ ‐ 1.0 266,284 22.0 4,336,808 1.0 167,045 ‐ ‐ 104.0 22,018,015

105.0 7,972,788 ‐ ‐ ‐ ‐ 11.0 896,855 15.0 910,966 ‐ ‐ 131.0 9,780,609

‐ 1,773,136 ‐ ‐ ‐ 11,421 ‐ 1,546,546 ‐ 15,900 ‐ ‐ ‐ 3,347,003

185.0 26,993,802 1.0 277,705 33.0 6,780,209 16.0 1,093,911 235.0 35,145,627

‐ 10,860,766 ‐ 2,000 ‐ 4,800 ‐ 4,332,263 ‐ 593,647 ‐ ‐ ‐ 15,793,476

‐ 765,250 ‐ ‐ ‐ ‐ ‐ 5,763,499 ‐ ‐ ‐ ‐ ‐ 6,528,749

‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,950,169 ‐ ‐ ‐ ‐ ‐ 5,950,169

‐ 5,186,025 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,186,025

16,812,041 2,000 4,800 16,045,931 593,647 33,458,419

185.0 43,805,843 2,000 1.0 282,505 33.0 22,826,140 16.0 1,687,558 235.0 68,604,046

79.0 17,192,320 ‐ ‐ 1.0 277,705 27.0 5,465,087 1.0 164,032 ‐ ‐ 108.0 23,099,144

105.4 8,299,778 ‐ ‐ ‐ ‐ 11.0 985,057 15.0 926,434 ‐ ‐ 131.4 10,211,269

‐ 4,548,215 ‐ ‐ ‐ ‐ ‐ 344,885 ‐ 26,712 ‐ ‐ ‐ 4,919,812

184.4 30,040,313 1.0 277,705 38.0 6,795,029 16.0 1,117,178 239.4 38,230,225

‐ 12,084,267 ‐ ‐ ‐ 4,800 ‐ 3,363,589 ‐ 829,883 ‐ ‐ ‐ 16,282,539

‐ 970,399 ‐ ‐ ‐ ‐ ‐ 7,188,349 ‐ ‐ ‐ ‐ ‐ 8,158,748

0.0 4,180,102 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 4,180,102

‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,960,764 ‐ ‐ ‐ ‐ ‐ 5,960,764

‐ 1,227,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,227,500

0.0 18,462,268 4,800 16,512,702 829,883 0.0 35,809,653

184.4 48,502,581 1.0 282,505 38.0 23,307,731 16.0 1,947,061 239.4 74,039,878

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FRANK BATTEN SCHOOL OF LEADERSHIP AND PUBLIC POLICY Overview of Operations The University of Virginia established the Frank Batten School of Leadership and Public Policy in 2007 as part of its strategic plan and as an expression of its Jeffersonian heritage. Through its instructional, research, and outreach programs, the Batten School contributes in important ways to public understanding and deliberation of the great domestic and international issues of each age. The Batten School’s mission is to generate useful knowledge and educate leaders who are prepared to serve communities of all sizes and lead necessary and sustainable change. The Batten School trains students in critical leadership skills and in the analytics and substance of policy. Its programs inspire students to act vigorously, effectively, and ethically on behalf of the common good. Faculty are committed to teaching the use of rigorous analysis; the subtle understanding of political, social and economic context; and the exercise of creative personal and organizational leadership to initiate change in an increasingly diverse world. May 2013 will mark the end of the Batten School’s sixth year of existence. The School’s academic offerings continue to grow and mature. In May 2013, the first cohort of two-year Master of Public Policy (MPP) students will graduate. Enrollments in both the accelerated and two-year MPP programs continue to grow, and the second class of undergraduate students will matriculate in the new undergraduate degree program in Public Policy and Leadership in fall 2013. For the first time in the School’s brief history, all three of the planned academic programs will have students enrolled in both the first and second years of the respective curricula. Strategic Direction The Batten School’s strategic initiatives for 2013-14 are to: 1. Conduct, publish, and teach groundbreaking

collaborative research on leadership;

2. Offer a unique and innovative student experience for undergraduates enrolled in the public policy and leadership major;

3. Strategically expand its reach by offering revenue generating, non-degree granting programs focused on leadership and public policy. The Batten School is particularly interested in developing an offering that

straddles and challenges traditional boundaries between the public and private sectors;

4. Globalize the MPP program with both curricular and co-curricular innovations;

5. Take a leadership role in the University’s cross-Grounds initiative on social entrepreneurship; and

6. Incorporate the full range of policy interests on

vertical (local, state, national, global) and horizontal (for-profit, not-for-profit, government) dimensions into the curriculum.

An enduring University of Virginia core value is to train students to exercise leadership responsibilities in a democratic society. Carrying forward this Jeffersonian tradition, the Batten School takes an expansive approach to public policy education -- one that prepares students to be effective, ethical, and enlightened leaders not only in government, but also in their professions and local communities. The School will strengthen the student experience by featuring capstone experiences as a key component of the undergraduate and graduate programs. These capstones inspire students to become engaged citizens who take on significant challenges through academic projects and scholarly reflection. The graduate capstone projects occur within real-world organizations in public policy arenas. The School furthers the idea that students must see connections between academic learning and public service by requiring MPP students to complete summer internships. Many undergraduates will seek internships as well. The Batten School continues to build a strong faculty with diverse interests and backgrounds. Four new hires began appointments in fall 2012 and have already made significant teaching and research contributions. One new faculty member’s teaching and research on conflicts and cooperation at both the individual and group levels have enriched the leadership curriculum. Another’s research, a thorough cost-benefit analysis of DNA profiling, garnered national attention in academic, judicial, and popular media circles. A third new faculty member’s international research on environmental issues in developing countries has furthered the School’s efforts to globalize across the curriculum. The fourth new faculty member’s timely research on Head Start

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programs provides insights about what early childhood investments are most likely to improve the lives of disadvantaged children. It was cited in President Obama’s State of the Union address. The School will continue to build an eclectic faculty in pursuit of a multi-disciplinary curriculum and research agenda that is relevant and forward-looking. The School promotes the University’s objective of expediting degree completion by offering an accelerated BA/ MPP program, which allows University undergraduates to receive both a bachelor's degree and the MPP degree in one year less than is normally required to earn both degrees. Batten accepts approximately 40 students per year into this program, and already student demand is high. Most students complete the two degrees in five years (rather than the normal six), but some students are able to earn the degrees in four years. In addition, Batten has recently launched new dual degree graduate programs including MPP/JD, MPP/MBA, MPP/Master of Public Health, and MPP/Master of Urban and Environmental Planning. These programs train future professionals for leadership and analytic careers in the legal, health care, business, and environmental sectors. All of the programs allow students to pursue two graduate degrees in an expedited manner, typically saving a year of study. Finally, the Batten School expanded its commitment to the University’s efforts to diversify research to include the promotion of economic growth. The continuing partnership with the Curry School of Education that supports the joint Center on Education Policy and Workforce Competitiveness has proven successful. Last year, Batten entered into a similar partnership with the School of Medicine’s Department of Public Health Services to establish the University of Virginia Center for Health Policy. 2013-14 Operating Budget The Batten School has a hybrid budget model, with the majority of its budget coming from a decentralized source – the endowment funded from the original gift that established the School. The School receives an allocation of tuition generated, net of a 15 percent assessment and a share of undergraduate financial aid. Gifts and endowments provide 75 percent of the 2013-14 operational budget, with 22 percent from tuition and the remainder from grants and contracts and F&A.

The Batten School’s 2013-14 operating budget (see the following page) is $8.97 million. The primary spending initiatives are faculty compensation (47 percent), staff salaries (14 percent), wages (6 percent), OTPS (13 percent), debt service (6 percent), and student fellowships (12 percent). The school’s 2013-14 operating budget includes an allocation of $363,604 related to fall 2013 enrollment growth. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. The School will continue to fill its planned faculty positions, add academic programs, and build the infrastructure required to aggressively search for and identify new markets and diverse revenue streams. Capital Plan No additions, deletions, or modifications for the next update of the Major Capital Projects Plan are planned.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1361 MBU: BA-Frank Batten School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid


Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid


Subtotal

MBU Totals

6.8 1,027,513 0.2 52,300 ‐ ‐ 15.8 2,430,117 ‐ ‐ ‐ ‐ 22.7 3,509,930

2.8 173,568 ‐ ‐ ‐ ‐ 9.0 755,000 ‐ ‐ ‐ ‐ 11.8 928,568

‐ 211,185 ‐ 112,300 ‐ 87,800 ‐ 444,701 ‐ ‐ ‐ ‐ ‐ 855,986

1.0 113,600 0.3 21,000 ‐ ‐ 0.1 5,400 ‐ ‐ ‐ ‐ 1.4 140,000

10.5 1,525,865 0.5 185,600 87,800 24.9 3,635,218 35.9 5,434,483

‐ 15,300 ‐ 15,500 ‐ 55,800 ‐ 760,700 ‐ 5,250 ‐ ‐ ‐ 852,550

‐ 78,140 ‐ 10,500 ‐ ‐ ‐ 700,000 ‐ ‐ ‐ ‐ ‐ 788,640

‐ ‐ ‐ ‐ ‐ ‐ 0.0 913,697 ‐ ‐ ‐ ‐ 0.0 913,697

93,440 26,000 55,800 0.0 2,374,397 5,250 0.0 2,554,887

10.5 1,619,305 0.5 211,600 143,600 24.9 6,009,615 5,250 35.9 7,989,370

7.6 1,335,800 0.2 25,898 ‐ ‐ 13.5 2,849,200 ‐ ‐ ‐ ‐ 21.3 4,210,898

3.5 323,254 1.3 71,300 ‐ ‐ 8.9 840,150 ‐ ‐ ‐ ‐ 13.8 1,234,704

0.0 78,400 ‐ 99,900 ‐ 114,278 ‐ 237,640 ‐ ‐ ‐ ‐ 0.0 530,218

1.6 130,000 0.3 20,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.9 150,000

12.7 1,867,454 1.7 217,098 114,278 22.5 3,926,990 36.9 6,125,820

0.0 12,584 ‐ 31,550 ‐ 71,500 ‐ 1,051,810 0.0 7,560 ‐ ‐ 0.0 1,175,004

0.0 78,140 ‐ 30,000 ‐ ‐ ‐ 991,860 ‐ ‐ ‐ ‐ 0.0 1,100,000

‐ ‐ ‐ ‐ ‐ ‐ 0.0 565,511 ‐ ‐ ‐ ‐ 0.0 565,511

0.0 90,724 61,550 71,500 0.0 2,609,181 0.0 7,560 0.0 2,840,515

12.7 1,958,178 1.7 278,648 185,778 22.5 6,536,171 0.0 7,560 36.9 8,966,335

50

MCINTIRE SCHOOL OF COMMERCE Overview of Operations Established in 1921 through a gift from Paul Goodloe McIntire, the McIntire School of Commerce offers an undergraduate degree (686 students in 2012-13) and three Master of Science graduate degrees (243 students in 2012-13) in Commerce, Management of Information Technology, and Accounting. McIntire’s projected 2013-14 enrollment is 690 undergraduate and 240 graduate students.

The below graph shows how the school’s student:faculty ratio has changed over time.

In addition to its degree programs and through its McIntire School of Commerce Foundation, the School offers the McIntire Business Institute, a non-degree, general business certificate program in the summer and during the academic year, as well as other custom-designed, executive education programs. Strategic Direction McIntire’s strategic plan is focused on: 1. Maintaining and enhancing high-quality

programs which build a world-class faculty, maintain highly-competitive admissions requirements, and develop innovative global programming;

2. Increasing competitive support for faculty by identifying funding in support of research and teaching, encouraging faculty innovation and participation, and developing adequate funding sources to retain faculty and recruit new faculty;

3. Investing in revenue-generating programs,

examining options to expand existing programs and launch new programs, and hiring and retaining the necessary professional staff ; and

4. Providing value-added student services by expanding use of technology, providing the highest levels of student and career services, and collaborating with students to establish new student organizations and areas of interest.

McIntire raises funds and offers programs through its research centers as a way to enhance the intellectual capital of faculty, students, business professionals, and corporate partners. Throughout the year, McIntire research centers sponsor popular symposia, panels, and other programs for faculty, practitioners, and students, discussing both hot topics in business and the very best of practice. 2013-14 Operating Budget The McIntire School operates within a hybrid funding model, with the undergraduate programs funded through a traditional centralized budget target plus an allocation of differential undergraduate tuition generated, net of a 10 percent assessment and a share of undergraduate financial aid. The graduate programs operate on a revenue-sharing basis. Under the revenue sharing agreement established in 1990, the McIntire School retains its graduate tuition revenues, less a 15 percent assessment ($1.1 million in the 2013-14 budget) to the University to cover overhead expenses. Approximately 65 percent of the school’s operating budget is funded from tuition, while 35 percent is funded from endowment distributions, gifts, and transfers from the McIntire School Foundation.

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In 2013-14, full-time McIntire undergraduate students will pay a tuition rate that is $5,000 higher than full-time undergraduate tuition. The differential tuition rate represents the third year of a three-year plan to generate funds that are critical in the areas of faculty compensation and retention; student services, career services, and technology; and building and enhancing programs. Tuition and fees charges for McIntire graduate programs will increase by 1.0-3.0 percent in 2013-14. McIntire’s 2013-14 operating budget (see the following page) is $29.6 million, with approximately 70 percent spent on faculty and staff compensation, 12 percent on debt service for the renovation and expansion of Rouss Hall, and 4 percent on student financial aid. McIntire’s 2013-14 operating budget includes an allocation of $276,000 related to fall 2011 and 2012 enrollment growth and $35,000 related to projected fall 2013 enrollment growth. The University has allocated $495,000 to McIntire related to the anticipated additional revenue generated by the increase in the School’s tuition differential. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. McIntire anticipates hiring two new faculty in 2013-14 along with replacing five existing positions. McIntire faces stiff competition from peers to retain the best, most productive faculty and recruit new faculty at competitive compensation levels. The following graph shows the average McIntire salary as compared to the 60th and 75th percentile of AAU peers:

In the short-term, McIntire has obtained additional private support to address faculty compensation issues; however, it is critical that a sustainable source of revenue be identified. Capital Plan McIntire currently does not have any capital projects on the Major Capital Projects Plan. Through its Foundation, McIntire maintains sufficient operating reserves to meet the Board of Visitors Capital and Operating Reserves Policy requirement that self-supporting schools/departments maintain operating reserves equivalent to three months of operating expenses.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R2375 MBU: MC-McIntire School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment


Transfers

Subtotal

MBU Totals

56.6 11,463,739 ‐ ‐ 2.1 302,708 17.7 3,148,477 ‐ ‐ ‐ ‐ 76.3 14,914,924

40.4 2,855,756 ‐ ‐ ‐ ‐ 3.4 219,500 ‐ ‐ ‐ ‐ 43.8 3,075,256

‐ 990,525 ‐ 36,180 ‐ ‐ ‐ 1,165,500 ‐ ‐ ‐ ‐ ‐ 2,192,205

97.0 15,310,020 36,180 2.1 302,708 21.1 4,533,477 120.1 20,182,385

‐ 1,721,683 ‐ ‐ ‐ ‐ ‐ 870,000 ‐ 71,950 ‐ ‐ ‐ 2,663,633

‐ 609,115 ‐ ‐ ‐ ‐ ‐ 608,759 ‐ ‐ ‐ ‐ ‐ 1,217,874

‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,595,035 ‐ ‐ ‐ ‐ ‐ 3,595,035

‐ 1,104,355 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,104,355

3,435,153 5,073,794 71,950 8,580,897

97.0 18,745,173 36,180 2.1 302,708 21.1 9,607,271 71,950 120.1 28,763,282

59.6 12,123,659 ‐ ‐ 1.8 289,962 15.2 3,090,073 ‐ ‐ ‐ ‐ 76.6 15,503,694

37.9 3,057,653 ‐ ‐ ‐ ‐ 3.2 238,749 ‐ ‐ ‐ ‐ 41.1 3,296,402

0.0 990,080 ‐ 23,904 ‐ ‐ ‐ 905,550 ‐ ‐ ‐ ‐ 0.0 1,919,534

97.5 16,171,392 23,904 1.8 289,962 18.3 4,234,372 117.7 20,719,630

0.0 1,469,777 ‐ ‐ ‐ ‐ ‐ 1,430,000 0.0 74,520 ‐ ‐ 0.0 2,974,297

0.0 556,824 ‐ ‐ ‐ ‐ 0.0 632,148 ‐ ‐ ‐ ‐ 0.0 1,188,972

0.0 1,127,993 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,127,993

‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,595,035 ‐ ‐ ‐ ‐ ‐ 3,595,035

‐ 0 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0

0.0 3,154,594 0.0 5,657,183 0.0 74,520 0.0 8,886,297

97.5 19,325,986 23,904 1.8 289,962 18.3 9,891,555 0.0 74,520 117.7 29,605,927

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SCHOOL OF ARCHITECTURE Overview of Operations The School of Architecture is considered among the top comprehensive environmental design schools in the nation. Each of its four disciplines—architecture, landscape architecture, architectural history, and urban and environmental planning—is ranked among the top 10 percent nationally, while collectively the School is known for its faculty’s and students’ interdisciplinary design, scholarly, and planning efforts. Graduates of the programs are frequent national award winners and populate or lead many of the best professional offices around the world. For the past 20 years, the School of Architecture has been a recognized leader in sustainability in the built environment. In the past three years, the School collaboratively has sought to refine this important distinction by selecting six interdisciplinary research themes, considered to be six ways to sustainability: 1. Design and Health; 2. Design and community engagement; 3. Regenerate: cultural preservation and

sustainability; 4. Design representation and material practices; 5. Adaptive infrastructures; and 6. Global Cultures and the Constructed

Environment Each theme includes faculty members from across the School and has been opened to the larger University community. These themes provide focus to faculty and student recruiting, organize school-wide symposia and publications, and fine tune research proposals and philanthropic requests. These themes seek to organize knowledge into fields of action rather than into an exhaustive taxonomy. The School has a full-time faculty of approximately 45, teaching about 480 students each year across four disciplines. Approximately two-thirds of its students are undergraduates, and approximately two-thirds are architecture students. The most recent enrollment trends are displayed below.

The student:faculty ratio over time is provided on the graph below.

The School of Architecture has hosted study abroad programs in northern Italy and China for 35 and 20 years, respectively, making these among the longest-running such programs nationally. In recent years, offerings have been expanded to a summer program in Falmouth, Jamaica; Ghana; and New Delhi, India. Strategic Direction The School of Architecture’s strategic direction includes: 1. Support and formalize the School’s six research

themes described earlier. The Center for Design and Health, one of the six themes, has been created; a $2 million endowment has been established for a professorship. The Center’s co-directors are establishing an advisory board and fellows program and are seeking additional research funding. Additionally, the Community Design and Research Center was established this year to support the design and community engagement theme. Faculty are working collaboratively on other research themes at different paces to create symposia, exhibits, and classes and to further their independent scholarship. The School will continue to support these faculty and student efforts through funding.

2. Create an interdisciplinary Ph.D. program. The School includes best-in-class designers and scholars. To deepen their efforts and allow them to contribute to a new generation of researchers, the School is creating its first Ph.D., an interdisciplinary degree in the Constructed Environment. This program will align the School with national peers in having a Ph.D. program and will perhaps make the School

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among the first to offer a newly-conceived Ph.D. for the 21st century.

3. Develop a school-wide curriculum in Practical Imagination, drawing on strengths from across the University. This curriculum will affirm an important but unnamed path to an undergraduate degree in the School by developing an interdisciplinary undergraduate focus described as the Curriculum in Practical Imagination. The degree is listed as B.S. Architecture with a concentration in design thinking. It will include a range of existing core courses as well as electives focused on design thinking, entrepreneurship, arts administration, innovation, and other subjects.

4. Streamline existing academic and administrative processes. The School’s leadership is methodically working to understand these processes and subsequently revise them, with the goals of fairness, efficiency, and transparency. The processes will be based, when possible, on national best practices.

5. Enhance the School’s teaching and research offerings internationally by extending and concentrating international efforts in the Mediterranean basin, Asia, and Africa in diaspora. To this end, a faculty member was appointed to the Weedon Chair in Asian Architecture, reinforcing efforts in Asia, specifically China. In addition, a visiting faculty member from New Delhi served as the Shure Professor. His exhibit, Golconde, demonstrated the power of early modernism in an Indian context. Following this extended effort, he has agreed to host a studio in New Dehli for the next several years.

The School of Architecture contributes to the three major goals of the Commission on the Future of the University -- the student experience, focus on science and technology, and global education. As one of the University’s smallest schools, and given the studio tradition, Architecture students form deep, life-long bonds with each other and with their professors during their time at the University. In the School of Architecture, many students work around the clock to accomplish demanding comprehensive assignments, and faculty and staff work to honor their commitment. Students often arrive with a passion to serve, and courses organized around community engagement, such as the recent all-school Rivanna River competition, satisfy this desire. Alumni

outreach is robust, and the School’s alumni are fully engaged in supporting each other and young graduates. All the disciplines housed in the School of Architecture are considered STEM [science, technology, engineering, and mathematics] subjects, and the School works to advance this understanding of applied technology through traditional coursework and hands-on projects such as those done in the Elmaleh Fabrications Lab or as part of the ECO-Mod, ReCOVER, and Learning Barge projects. The School of Architecture has a long history of providing global education. In recent years, efforts have resulted in faculty hired from China, Austria, the Netherlands, and Spain, and faculty visiting from Australia, Romania, and Egypt. Funded student travel in this 12-month period includes trips to China, New Dehli, and Barcelona. In addition, recent symposia have introduced students to scholars from every continent but Antarctica. 2013-14 Operating Budget The School of Architecture is funded through a traditional centralized target budget and self-generated grants, contracts, and private resources. For 2013-14, 80 percent of the School’s operating budget is from tuition and state general funds. Private funds (endowment distribution, gifts, and transfers from the School of Architecture Foundation) represent 17 percent of funding, while grants, contracts, and F&A constitute 1 percent.

The School of Architecture’s 2013-14 operating budget (see page 57) is $9.8 million, with the primary spending initiatives being faculty compensation (53 percent), staff salaries and wages (21 percent), and GTA/ GRA stipends and graduate fellowship support (13 percent). Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state.

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The below graph demonstrates the average Architecture faculty salary as compared to the 60th and 75th percentile of AAU peers.

In 2013-14, the School will examine how to streamline current processes to maximize available resources to meet the research and instructional goals outlined above. Additionally, the School will be evaluating new revenue sources and improving recruitment efforts to increase enrollment. The Center for Design and Health hopes to hire the Deshong Professor in Design and Health and will be moving forward with expanding the curriculum. The School will continue to devote the efforts of faculty and staff towards the establishment of the Architecture Ph.D. program. Capital Plan The School of Architecture has no current or upcoming capital projects planned.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1565 MBU: AR-Architecture School

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FTE Amount

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FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Subtotal

MBU Totals

39.8 4,686,455 0.1 10,800 1.0 103,796 3.4 529,995 ‐ ‐ ‐ ‐ 44.3 5,331,046

18.9 1,291,087 ‐ ‐ ‐ ‐ 2.0 152,801 0.1 1,100 ‐ ‐ 21.0 1,444,988

‐ 450,210 ‐ 74,201 ‐ ‐ ‐ ‐ ‐ 20,000 ‐ ‐ ‐ 544,411

1.3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.3 ‐

59.9 6,427,752 0.1 85,001 1.0 103,796 5.4 682,796 0.1 21,100 66.5 7,320,445

‐ 1,556,236 ‐ 84,700 ‐ 46,749 ‐ 159,130 ‐ 287,054 ‐ ‐ ‐ 2,133,869

‐ 705,657 ‐ ‐ ‐ 4,000 ‐ 530,650 ‐ ‐ ‐ ‐ ‐ 1,240,307

2,261,893 84,700 50,749 689,780 287,054 3,374,176

59.9 8,689,645 0.1 169,701 1.0 154,545 5.4 1,372,576 0.1 308,154 66.5 10,694,621

39.4 4,512,569 0.1 10,800 0.8 103,227 5.1 555,133 ‐ ‐ ‐ ‐ 45.4 5,181,729

18.9 1,428,385 ‐ ‐ ‐ ‐ 2.0 152,801 0.1 5,550 ‐ ‐ 21.0 1,586,736

‐ 487,723 ‐ 5,800 ‐ ‐ ‐ ‐ ‐ 5,400 ‐ ‐ ‐ 498,923

58.3 6,428,677 0.1 16,600 0.8 103,227 7.1 707,934 0.1 10,950 66.4 7,267,388

‐ 657,159 ‐ 46,200 ‐ 47,471 ‐ 236,000 ‐ 250,369 ‐ ‐ ‐ 1,237,199

‐ 720,538 ‐ ‐ ‐ 4,000 ‐ 530,650 ‐ ‐ ‐ ‐ ‐ 1,255,188

1,377,697 46,200 51,471 766,650 250,369 2,492,387

58.3 7,806,374 0.1 62,800 0.8 154,698 7.1 1,474,584 0.1 261,319 66.4 9,759,775

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SCHOOL OF CONTINUING AND PROFESSIONAL STUDIES Overview of Operations The School of Continuing and Professional Studies (SCPS) responds to the academic and professional needs of adult learners for useful knowledge. SCPS operates seven regional outreach centers located throughout the Commonwealth of Virginia. Each of these centers offers noncredit and credit professional development and certificate programs. Additionally, SCPS offers a part-time Bachelor of Interdisciplinary Studies (BIS) degree program in Charlottesville, as well as other sites, in partnership with Tidewater Community College and Northern Virginia Community College (NVCC). In 2012-13, SCPS expanded the BIS program to NVCC’s Loudoun campus and to the residents of the Greater Richmond region. SCPS serves nearly 10,000 students (unduplicated headcount) each fiscal year. Over the past decade, an increasing number of public, private, and for-profit schools have entered into the academic outreach market to serve K-12 educators. This increased competition has contributed to a continuous decline in SCPS’s off-Grounds credit enrollments; also contributing to the decline in enrollments are budget cuts to SCPS and the Curry School of Education and eroding local support for K-12 educators seeking graduate degrees. As of fall 2013, SCPS no longer administers Curry degree programs or courses. However, SCPS continues to deliver a small portfolio of academic programs for K-12 educators that are requested by the K-12 market but not offered through Curry. Although SCPS has experienced declines in credit registrations, these declines generally have been offset by increases in non-credit programming and tuition rates. The following graphs show the trends in SCPS’s annual enrollment and total revenues.

In addition to academic offerings, SCPS operates a conference center, a satellite uplink facility, and a television studio. Strategic Direction SCPS has implemented a six-year strategic plan that is driving its resource allocations. The three priorities of this plan are academic quality, growth in enrollment, and fiscal stability. SCPS has developed and implemented a multi-year program review calendar, which enables SCPS to evaluate the curriculum, courses, and faculty of its programs and, ultimately, to identify strategic priorities and drive resource allocations. In order to effectively complete the program reviews and improve decision-making, processes and systems have been implemented to become more data driven. Data is analyzed from the enrollment funnel, including data associated with inquiries, prospects, applicants, enrolled students, matriculated students, students on leave, and so forth. SCPS also analyzes (1) student retention rates for existing programs; (2) assessments of marketing activities and investments; and (3) fiscal reporting by program. An integral part of SCPS’ strategic planning has been the implementation of cross-functional teams during fall 2012 to complete program analyses for about 20 academic programs. The results of these reviews have enhanced curriculum, will drive resource allocations and reallocations in 2013-14 and 2014-15, and allowed SCPS to classify its “brand-building” academic programs as Tier 1, Tier 2, or Tier 3 programs. Resources will be allocated accordingly amongst these priorities and in a manner that will increase enrollment growth through allocation of marketing resources, administrative support of the programs, program delivery changes, academic

$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000

2001‐02

2002‐03

2003‐04

2004‐05

2005‐06

2006‐07

2007‐08

2008‐09

2009‐10

2010‐11

2011‐12

Annual Total Revenues

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content changes, etc. As a result of these program reviews, up to four programs have been identified for sun-setting, which will allow resources to be reallocated to grow enrollments in Tier 1 and Tier 2 programs and/or to develop new or emerging programs over the next several years. SCPS’ program review is a multi-year effort and will involve review of additional programs and reassessment of recommendations and results during 2013-14, 2014-15, and beyond. Key programs that will be supported from additional resources reallocated through these efforts include support for the proposed Bachelor in Professional Studies (Health Sciences) undergraduate degree program, Business and Professional graduate and undergraduate certificate programs, the Analyst Boot Camp delivered in collaboration with the Advanced Technical Intelligence Center (ATIC), and continuance of professional education programs in a variety of fields (Finance, Arts and Culture, News Media, K12, and Higher Education) for Chinese professionals through the Triway International Group. SCPS’ Strategic Marketing Plan encompasses tactical efforts that continue to build upon the SCPS web presence, as well as commitments to publications, engagement communications, and recruitment advertising. The plan focuses on both single-year and multi-year approaches that allow for ongoing tactics that continue to demonstrate return on investments, while allowing for the introduction of new efforts that can be tested and evaluated before further expenditure investments are made. Performance metrics for the marketing and communications efforts include: web analytics, due to a robust set-up of Google Analytics; tracking of all print and electronic recruitment advertising; measuring click-thru rates of electronic marketing and communications efforts; and survey data from prospective and current students. Another data collection and analysis initiative to support strategic decision-making has been the recent development and implementation of an Outreach and Contracts Database system. This is the system of record for tracking and reporting of contacts and opportunities with SCPS’ clients and is used to generate and track the status of revenue contracts. When fully implemented, this system will assist SCPS in providing reports of revenues as well as clients and students served. Also supporting strategic planning and program initiatives is the new Chart of Accounts, which will

provide financial information and reporting by program, program area, and location. The expenditure portion was implemented in July 2012, and the revenue portion will be implemented as of summer 2013 Term. SCPS is uniquely poised to assist the University in contributing to the Higher Education Opportunity Act of 2011 goal to award an additional 100,000 degrees over the next fifteen years through expanding its BIS degree program. Beginning fall 2012, SCPS expanded delivery of the BIS program to the Richmond metropolitan area and its partnership with NVCC by delivering the program to students at the NVCC Loudoun campus. SCPS has begun discussions to continue to expand the BIS offering at others areas within the state, including responding to interest from Thomas Nelson Community College to bring the BIS degree program to its adult students in the Williamsburg area once academic approvals are completed. SCPS is responding to the Medical Center’s demand for bachelor-credentialed health science professionals by developing a new Bachelor of Professional Studies (BPS) in Health Sciences degree program in conjunction with Piedmont Virginia Community College (PVCC) and other community colleges throughout the Commonwealth. Initial program enrollments will be accepted for fall 2014. This program will support the Higher Education Opportunity Act and the University’s six-year plan. SCPS continues to offer noncredit, customized education programs and professional training at its seven regional outreach centers, including its center at the Southwest Virginia Higher Education Center. Furthermore, SCPS is expanding its strategic partnership with China to provide customized professional development programs for visiting higher education faculty and working professionals. 2013-14 Operating Budget SCPS’s primary revenue source is the tuition and fees generated by its regional outreach centers. The School has a hybrid budget model, with a portion of funds allocated from the University and a portion directly related to tuition revenues generated, as governed by a revenue-sharing agreement that has been in place since 1998. Under the agreement, SCPS shares in 90 percent of revenues collected in excess of budget and also returns to the University 90 percent of any revenue shortfall. Approximately 92 percent of the School’s operating budget is funded from tuition and state general funds.

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Five percent of the operating budget is funded from local sales and services, with the remainder from grants and contracts, private funds, and auxiliary activities.

SCPS’s 2013-14 operating budget (see the following page) totals $13.9 million, of which approximately 80 percent relates to faculty and staff compensation. SCPS has unique costs due to its statewide operation, which include lease payments for regional outreach centers and travel costs to provide services at each of the seven centers. Primary spending initiatives for 2013-14 represent the direct educational costs of SCPS programs and the supporting administrative costs for these programs and the school. The 2013-14 budget includes additional resources to support outreach staff and the new facility in Newport News; enrollment growth in the BIS degree program; additional resources to grow Business, Technology, and Leadership academic programs; and development of online versions of current courses in order to provide additional opportunities for adult learners across the entire state. These additional investments are critical to fund SCPS’s strategic priorities and to expand SCPS’s academic portfolio. The budget reflects support to the development of the BPS program in Health Sciences in partnership between the UVA Medical Center, PVCC, and other community colleges throughout the Commonwealth. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Due to previous budget reductions, unfunded increases in maintenance and operating costs, and declining off-Grounds enrollments and fee revenues, SCPS anticipates using approximately $395,000 in operating cash balances to cover a portion of the Northern Virginia facility costs that were previously covered through fee revenue. In addition, up to

$393,000 of advertising and media expenses will be paid from non-recurring funds. Capital Plan SCPS currently does not have any capital projects on the Major Capital Projects Plan. The school maintains a reserve associated with its satellite transmission auxiliary; this reserve has been established as a replacement fund for the future maintenance and/or replacement of satellite technology. The operating reserve for the satellite transmission auxiliary is projected to have a balance at June 30, 2013 of $1,000,000, which exceeds the requirement of the Board of Visitors Capital and Operating Reserves Policy.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1915 MBU: CP-School of Cont/Prof Studies

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FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries

Subtotal

MBU Totals

28.2 3,217,069 0.4 29,700 ‐ ‐ ‐ ‐ 1.3 281,010 ‐ ‐ 29.9 3,527,779

71.0 4,292,320 0.6 29,900 ‐ ‐ ‐ ‐ 1.8 110,242 0.3 17,933 73.6 4,450,395

‐ 3,038,132 ‐ 91,500 ‐ ‐ ‐ ‐ ‐ 502,406 ‐ ‐ ‐ 3,632,038

‐ 1,400 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,400

99.2 10,548,921 1.0 151,100 3.0 893,658 0.3 17,933 103.4 11,611,612

‐ 4,462,988 ‐ 224,400 ‐ 76,440 ‐ 1,000 ‐ 210,478 ‐ 47,270 ‐ 5,022,576

‐ 183,518 ‐ 55,900 ‐ ‐ ‐ 82,000 ‐ ‐ ‐ ‐ ‐ 321,418

‐ ‐160,402 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐45,000 ‐ ‐7,000 ‐ ‐212,402

‐ 137,034 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 137,034

4,623,138 280,300 76,440 83,000 165,478 40,270 5,268,626

99.2 15,172,059 1.0 431,400 76,440 83,000 3.0 1,059,136 0.3 58,203 103.4 16,880,238

23.1 2,776,150 0.4 27,770 ‐ ‐ ‐ ‐ 1.0 116,060 ‐ ‐ 24.5 2,919,981

67.5 4,836,697 0.3 13,171 ‐ ‐ ‐ ‐ 1.6 102,422 0.3 18,516 69.5 4,970,806

‐ 2,775,442 ‐ 96,157 ‐ ‐ ‐ ‐ ‐ 341,070 ‐ ‐ ‐ 3,212,669

‐ 1,400 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,400

90.6 10,389,689 0.6 137,098 2.6 559,552 0.3 18,516 94.0 11,104,856

‐ 3,142,608 ‐ 137,852 ‐ ‐ ‐ 1,000 ‐ 135,524 ‐ 38,271 ‐ 3,455,255

‐ 79,518 ‐ 8,400 ‐ ‐ ‐ 82,000 ‐ ‐ ‐ ‐ ‐ 169,918

‐ ‐753,889 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐45,000 ‐ ‐7,000 ‐ ‐805,889

2,468,238 146,252 83,000 90,524 31,271 2,819,285

90.6 12,857,927 0.6 283,350 83,000 2.6 650,076 0.3 49,787 94.0 13,924,141

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SCHOOL OF ENGINEERING AND APPLIED SCIENCE Overview of Operations Founded in 1836, the University of Virginia School of Engineering and Applied Science (SEAS) combines excellence in undergraduate and graduate education in a robust research institution with educational opportunities in nine academic departments. These departments include biomedical engineering; chemical engineering; civil and environmental engineering; computer science; electrical and computer engineering; engineering and society; materials science and engineering; mechanical and aerospace engineering; and systems and information engineering. The undergraduate program offers courses in engineering, ethics, mathematics, the sciences, business, entrepreneurship, and the humanities. The program also places great emphasis on leadership and service. Faculty and graduate student research addresses societal challenges, including creation of a sustainable future, improved health, cyber and physical infrastructure, and personal and societal security. This research is often conducted in collaboration with the University's other schools. The SEAS has 135 tenured and tenure-track faculty, 44 non-tenure-track faculty, 85 research professionals, a professional staff of 120, and an on-grounds and off-grounds student body of 2,478 undergraduates and 673 graduate students.

The SEAS is ranked by U.S. News & World Report in the top 40 among engineering schools in the U.S. overall and in the top 25 among engineering schools within public institutions. Strategic Direction A new strategic plan for the SEAS was developed during 2010-11 to guide the School in the coming years as it continues to become a major research institution. Over the next decade, faculty size (both

tenured and non-tenure-track) and productivity will increase to offer larger, more effective educational programs at both the undergraduate and graduate levels. The SEAS will also continue to expand collaborative research programs of significant benefit to society. Specifically, the SEAS’s strategic plan includes six interrelated goals: 1. Graduates prepared for leadership, 2. Research with impact, 3. Expansion of the School’s outreach, 4. Faculty and staff success, 5. Operational excellence, and 6. Resources for the future. The SEAS advances many of the University’s strategic objectives and supports the objectives of the Higher Education Opportunity Act. The SEAS is highly committed to a student education that includes hands-on learning, global experiences, the opportunity to engage in collaborative and self-directed research, and the ability to broaden one’s education. High-Impact Experiential Programs The SEAS aspires to offer every undergraduate student the opportunity to participate in a sustained, high-impact experience before they graduate. This will enable students to do such things as conduct independent research in tissue engineering, undertake a service project related to water and sanitation in South Africa, or study engineering in Madrid. These experiences improve student learning, retention, and engagement. They expand students' understanding of how technical problem solving relates to, impacts, and is influenced by, societal needs and cultural norms. International Experiences Engineering is a global activity; there is a good chance that all engineering school graduates will be employed with a global company or will be involved with people of other nations and cultures. The SEAS’s Office of International Programs is engaged with developing all types of international experiences such as study abroad programs, summer internships, January Term programs, and other special programs. Approximately 20 percent of the undergraduate student body uses the resources of the International Office.

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Undergraduate Student Participation in Research The opportunity for undergraduate students to participate in research is a requirement for top-ranked engineering schools. Although not required, all SEAS students are encouraged to conduct research either independently or as part of a research program of a faculty member at some point during the student’s undergraduate experience. The opportunity for participating in a research experience is enhanced because of the undergraduate thesis requirement of every SEAS student. This thesis requirement contains all of the attributes of a good research experience including a proposal, a background study, a technical paper, presentations, and the actual conduct of experiments. It has been determined by experience that the best mechanism for an undergraduate student to get into a top graduate school is for the student to participate in the research program of a SEAS faculty member. Graduate Student Experience The SEAS is committed to a larger graduate student body and an outstanding graduate student experience. For its graduate students to lead in their chosen field, whether in academia or industry, the School must provide a thriving, competitive environment that values and encourages internationally-recognized scholarship. The environment should stimulate connections across the SEAS, the University, and beyond. A larger, better connected, and more productive graduate student body will increase the School’s research and scholarly productivity, provide support for its undergraduate program, and enhance the visibility and reputation of the School. Faculty and Staff Experience Success of the SEAS depends largely on the creativity and energy of its people. The School is working to develop the best possible group of people to maximize their potential and advance the mission. Ongoing or planned key actions include: 1. Ensuring that policies and incentives encourage a

culture of excellence;

2. Clarifying roles and responsibilities and implementing transparent decision-making and reporting processes;

3. Expanding leadership and professional development programs for faculty and staff;

4. Developing and fully utilizing an integrated performance management system aligned with compensation and reward systems; and

5. Developing effective support staff capabilities for administrative, technical, and research activities.

Science and Collaborative Research The SEAS recently opened Rice Hall, a state-of-the-art, 100,000-square foot instructional and research facility. Rice Hall will serve collaborative researchers throughout the SEAS and across Grounds as the nexus of information technology engineering activity. The building will facilitate research in areas such as high-performance computing, computer visualization, information assurance, computer security, energy conservation, wireless communications, telemedicine, virtual reality, distributed multimedia, and distance learning. The Rolls-Royce partnership achieved a major milestone by completing the occupancy and full functionality of the Commonwealth Center for Advanced Manufacturing in the summer of 2012. The Commonwealth Center for Advanced Logistics Systems (CCALS), a partnership with Longwood University, Virginia State University, and others, has been funded and is operating. The research focus of the CCALS will be on the integrated logistics system and its economic cost and dependability. The Applied Research Institute was designed to expand the research opportunities for the SEAS and the University in the areas of applied corporate research and development and federal classified research. The facility has the capabilities for secure research activities, and the University can hold security clearances for faculty and staff. The Curry School of Education-SEAS Engineering Education Initiative works to stimulate regular dialogue between the Engineering School and the Curry School. The Curry-SEAS Initiative sponsors speakers, brown-bag seminars, and working groups to discuss topics of mutual interest ranging from research funding opportunities to cooperative training and instructional pursuits. These meetings focus around engineering education at the PK-12 levels, the undergraduate experience, and informal and continuing educational contexts. Through the generosity of external donors, the SEAS has created a fund to provide seed and match funding to support new research collaborations within the School. Each $50,000 award supports a graduate student and comes through an annual call for proposals. Two proposals in each of the past two years have received awards, each supporting collaborative research across departments.

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2013-14 Operating Budget The SEAS is funded through a traditional centralized budget target and self-generated grants, contracts, and private resources. For 2013-14, 47 percent of the School’s operating budget is funded from grants, contracts, and F&A distributions. Approximately 42 percent is provided from tuition and state general funds, while private funds (endowment distribution, gifts, and funds transferred from the Engineering Foundation) represent 10 percent of the budget.

Funding nearly half of the School’s operations, grants and contracts, along with the accompanying return of F&A cost recoveries, are a critical source. The following graphs demonstrate the increase in grant and F&A support to the SEAS, as well as the diversity of sponsors.

The School’s 2013-14 operating budget (see page 66) is $90.1 million; the primary spending initiatives are faculty compensation (39 percent), GTA/ GRA stipends and graduate fellowship support (19 percent), and staff salaries and wages (13 percent). The School’s 2013-14 operating budget includes an allocation of $714,315 related to fall 2013 enrollment growth. The School’s budget also includes an allocation of $318,000 to support the hiring of two new faculty in accordance with the Rolls-Royce partnership agreement, as well as an allocation of $318,000 to support the hiring of two new faculty, which was committed as a part of the dean’s re-appointment. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Recruiting and retaining faculty will be a continued emphasis, in compensation as well as start-up packages. The below graph demonstrates the average SEAS faculty salary as compared to the 60th and 75th percentile of AAU peers.

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Annual Research Awards by Granting Agency

NASA

State

Dept Education

Other Federal

Dept Energy

Nat'l ScienceFoundationIndustry

OtherUniversitiesDept Defense

Foundations

Dept Health &Human Serv.

Source: Office of Sponsored Programs

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The following graph illustrates the School’s student:faculty ratio over the past several years.

Capital Plan Construction has been completed for the SEAS Student Projects Facility, Lacy Hall (shared with Facilities Management shop space), and will be fully occupied by students in the fall of 2013. Lacy Hall will expand opportunities for hands-on learning. Currently, projects on the long term Capital Program include the renovations of Thornton Hall D-Wing and B-Wing ($27 million) and a placeholder for a new lab building possibly shared with the College of Arts & Sciences ($147 million). All projects on the long-term plan are proposed to be funded from state general funds or a combination of state general funds and gifts.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1665 MBU: EN-Engr School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Central Assessment


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment


Subtotal

MBU Totals

149.3 20,291,364 103.9 11,086,163 0.1 311,441 15.8 2,747,748 ‐ ‐ ‐ ‐ 269.0 34,436,716

68.9 4,353,575 54.5 2,610,693 ‐ ‐ 4.9 234,680 0.2 6,922 ‐ ‐ 128.4 7,205,870

‐ 927,738 ‐ 2,948,091 ‐ ‐ ‐ 540,863 ‐ ‐ ‐ ‐ ‐ 4,416,692

17.2 1,264,602 100.7 6,049,281 ‐ ‐ 8.2 489,397 ‐ ‐ ‐ ‐ 126.1 7,803,280

235.4 26,837,279 259.0 22,694,228 0.1 311,441 28.8 4,012,688 0.2 6,922 523.5 53,862,558

‐ 6,332,487 ‐ 22,479,314 ‐ 174,930 ‐ 2,060,241 ‐ 769,959 ‐ ‐ ‐ 31,816,931

‐ 4,777,134 ‐ 3,230,001 ‐ ‐ ‐ 1,439,353 ‐ ‐ ‐ ‐ ‐ 9,446,488

‐ 568,968 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 568,968

‐ ‐ ‐ ‐ ‐ ‐ ‐ 950,000 ‐ ‐ ‐ ‐ ‐ 950,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 ‐ ‐ ‐ 0

11,678,589 25,709,315 174,930 4,449,594 769,959 42,782,386

235.4 38,515,868 259.0 48,403,543 0.1 486,371 28.8 8,462,282 0.2 776,881 523.5 96,644,945

153.3 20,924,611 103.9 11,300,387 0.1 309,502 15.8 2,856,715 ‐ ‐ ‐ ‐ 273.0 35,391,215

67.8 4,731,677 54.5 2,623,311 ‐ ‐ 4.9 239,375 0.2 7,060 ‐ ‐ 127.4 7,601,423

‐ 980,500 ‐ 2,896,179 ‐ ‐ ‐ 540,863 ‐ ‐ ‐ ‐ ‐ 4,417,542

17.2 1,345,600 100.7 5,934,481 ‐ ‐ 8.2 489,397 ‐ ‐ ‐ ‐ 126.1 7,769,478

238.4 27,982,388 259.0 22,754,358 0.1 309,502 28.8 4,126,350 0.2 7,060 526.5 55,179,658

‐ 4,594,116 ‐ 16,694,014 ‐ 226,822 ‐ 2,060,241 ‐ 272,562 ‐ ‐ ‐ 23,847,755

‐ 4,635,071 ‐ 3,167,193 ‐ ‐ ‐ 1,441,956 ‐ ‐ ‐ ‐ ‐ 9,244,220

0.0 837,455 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 837,455

‐ 66,420 ‐ ‐ ‐ ‐ ‐ 950,000 ‐ ‐ ‐ ‐ ‐ 1,016,420

0.0 10,133,062 19,861,207 226,822 4,452,197 272,562 0.0 34,945,850

238.4 38,115,450 259.0 42,615,565 0.1 536,324 28.8 8,578,547 0.2 279,622 526.5 90,125,508

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SCHOOL OF LAW Overview of Operations Founded by Thomas Jefferson in 1819, the University of Virginia School of Law is a world-renowned training ground for distinguished lawyers and public servants. Consistently ranked among the top law schools in the nation, the Law School enrolls approximately 1,080 students in a three-year J.D. program, approximately 45 students in a one-year L.L.M. program, and approximately 5 students in an S.J.D. program. The following graph shows the Law School’s enrollment trend for the J.D. program.

The Law School instills in its students a commitment to leadership, integrity, and community service. The Law School is known for its collegial environment that bonds students and faculty, and student satisfaction is consistently cited as among the highest in American law schools. At the University, law students share their experiences in a cooperative spirit, both in and out of the classroom, and build a network that lasts well beyond their time at the University. Strategic Direction The Law School’s strategic goals for 2013-14 include: 1. Maintaining the quality and diversity of its

student body;

2. Increasing faculty quality, including providing faculty salaries that are more competitive with those of peer institutions;

3. Continuing to refine and improve the placement services provided to students through the Career Services and Public Service offices; and

4. Expanding its externship program, which allows students to earn academic credit while working for a government or non-profit organization under the supervision of a practicing attorney and a Law School faculty member.

2013-14 Operating Budget Financial self-sufficiency was first endorsed by the Board of Visitors in 1995 and formalized by memorandum of understanding in 2002. As a financially self-sufficient school, the Law School retains its tuition revenues, receives a subsidy for each in-state student of $2,500 (the University and the Law School split the cost of the $5,000 differential between in-state and out-of-state tuition), and is responsible for generating sufficient revenues to cover all of its operating and capital expenditures. Under self-sufficiency, other than the in-state student subsidy ($781,000 in the 2013-14 budget), the only central allocations to the Law School are $97,000 from state general funds for financial aid to in-state students and $130,000 from private funds for financial aid. Approximately 85 percent of the School’s operating budget is funded from tuition, 13 percent from gift and endowment distributions (including transfers from the Law School Foundation), and the remainder from grants and contracts and other sources.

The Law School’s net tuition revenue is projected to grow by 1.9 percent in 2013-14. Tuition and fees for non-residents will increase by 2.9 percent; the increase for residents will be 3.2 percent. These are the lowest increases in more than 15 years. Total enrollment is projected to decline slightly. The Law School’s 2013-14 operating budget (see page 69) is $63.4 million, with approximately 62 percent spent on faculty and staff compensation. For several years, the Law School had been gradually increasing the size of its instructional faculty in order to improve the student:faculty ratio (see the following page), which had been at the bottom of its top ten peer group. The Law School is pleased with the progress that has been made, so the focus now is on maintaining, rather than increasing, the size of the faculty.

0

200

400

600

800

1,000

1,200

2002‐03

2003‐04

2004‐05

2005‐06

2006‐07

2007‐08

2008‐09

2009‐10

2010‐11

2011‐12

Annual Full‐Time Equivalent Enrollment (J.D. Program)

Source: Institutional Assessment & Studies

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As a result, total faculty compensation expenditures have grown gradually. The following graph shows the average Law School salary as compared to the 60th and 75th percentile of all AAU peers, which is a broader peer group than the Law School uses internally to measure the competitiveness of its compensation.

The Law School continues to face stiff competition from its smaller group of top ten peer institutions for first-rate faculty. Pursuant to the President’s plan, the Law School will be aggressive in recruiting and retaining talented faculty in the coming years. Student financial aid and scholarships comprise approximately 17 percent of the 2013-14 operating budget. Under the self-sufficiency agreement, the Law School is directly responsible for building maintenance and utilities. In addition, the School returns 10 percent of tuition and fees ($5.5 million in the 2013-14 budget) to the University to cover overhead expenses. Remaining budgeted expenses include library collections, equipment, and travel. Capital Plan The Law School recently completed the Karsh Student Services Center project, so it has only one project on the Major Capital Projects Plan: a deferred

maintenance repair and renovation program. The Law School has chosen not to undertake this large, comprehensive program, preferring instead to tackle smaller, more focused projects on a year-to-year basis. As a self-supporting school, the Law School is required by the Board of Visitors Capital and Operating Reserves Policy to have operating reserves equivalent to three months of operating expenses. Per the same policy, the Law School must demonstrate annual capital expenditures or contributions to capital reserves of at least 1.5 percent of replacement value of buildings and equipment. The Law School meets both requirements.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Students per Faculty

Student:Faculty Ratio

Source: Institutional Assessment & Studies

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1620 MBU: LW-Law School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries

Transfers

Subtotal

MBU Totals

99.4 25,182,000 4.0 604,300 ‐ ‐ 9.5 2,793,000 ‐ ‐ ‐ ‐ 112.9 28,579,300

64.5 4,073,066 1.0 38,070 ‐ ‐ 3.0 177,100 6.0 324,000 ‐ ‐ 74.5 4,612,236

‐ 4,208,000 ‐ 30,500 ‐ ‐ ‐ 460,000 ‐ ‐ ‐ ‐ ‐ 4,698,500

163.9 33,463,066 5.0 672,870 12.5 3,430,100 6.0 324,000 187.4 37,890,036

‐ 8,200,400 ‐ 43,500 ‐ 8,000 ‐ 465,000 ‐ 291,138 ‐ ‐ ‐ 9,008,038

‐ 6,267,082 ‐ ‐ ‐ ‐ ‐ 4,097,944 ‐ ‐ ‐ ‐ ‐ 10,365,026

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐224,000 ‐ ‐ ‐ ‐224,000

‐ 4,548,896 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,548,896

19,016,378 43,500 8,000 4,562,944 67,138 23,697,960

163.9 52,479,444 5.0 716,370 8,000 12.5 7,993,044 6.0 391,138 187.4 61,587,996

99.3 25,930,762 3.0 550,000 ‐ ‐ 9.5 2,956,668 ‐ ‐ ‐ ‐ 111.8 29,437,430

60.0 4,247,805 1.0 40,000 ‐ ‐ 3.0 200,000 6.0 361,100 ‐ ‐ 70.0 4,848,905

‐ 4,231,850 ‐ 35,000 ‐ ‐ ‐ 500,000 ‐ ‐ ‐ ‐ ‐ 4,766,850

159.3 34,410,417 4.0 625,000 12.5 3,656,668 6.0 361,100 181.8 39,053,185

‐ 8,311,400 ‐ 45,000 ‐ 8,000 ‐ 485,000 ‐ 245,000 ‐ ‐ ‐ 9,094,400

‐ 6,654,844 ‐ ‐ ‐ ‐ ‐ 4,145,377 ‐ ‐ ‐ ‐ ‐ 10,800,221

0.0 5,468,430 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 5,468,430

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐229,100 ‐ ‐ ‐ ‐229,100

‐ ‐781,075 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐781,075

0.0 19,653,599 45,000 8,000 4,630,377 15,900 0.0 24,352,876

159.3 54,064,016 4.0 670,000 8,000 12.5 8,287,045 6.0 377,000 181.8 63,406,061

69

SCHOOL OF MEDICINE Overview of Operations The School of Medicine (SOM), the tenth medical school to be established in the United States, was authorized by the Board at its first meeting in 1819. The SOM was established in 1824 as one of the University's original eight schools and opened in March 1825. The first degree offered at the University was the Doctor of Medicine in 1828. The School’s primary mission mirrors that of the University – to help people achieve healthy productive lives and advance knowledge – through education, research, and public service/patient care in the medical sciences. Education The SOM is changing how medicine and science are learned. Its innovative undergraduate medical education Next Generation "Cells to Society” Curriculum eschews the traditional split of basic and clinical sciences and, instead, employs an organ system learning experience in which students learn science in the context of its clinical application. The approach uses the best evidenced-based models for medical education to foster student learning. The curriculum contains a careful balance of active and experiential activities, clinical cases, problem-based learning, small group and team-based experiences, hands-on laboratories, self-directed learning, lectures, and hospital- and community-based clinical experiences. The SOM has established a developmental approach to student assessment using validated tests of student knowledge and skills to ensure readiness for graduation and residency education. The graduate school curriculum for Ph.D. students similarly has been revamped to a more nimble and modular approach to classes and increasing opportunities to hone fundamental skills of oral and written presentations, primary data evaluation, and critique. The school’s primary Ph.D. program is the Biomedical Sciences (BIMS) Graduate Program, an interdisciplinary graduate program designed to train Ph.D. candidates in becoming the next generation of scientific leaders. The first-year curriculum launches students into a “culture of learning” through highly interactive and problem-based teaching modalities. In parallel, students are offered a broad spectrum of research opportunities from which they select a thesis advisor and area of study. Throughout their tenure in the BIMS program, students are exposed to state-of-the-art technologies and collaborative science as active members of research teams. Upon completion of their degree, graduates choose traditional

postdoctoral positions in academia or industry, teach, or pursue careers in government. The following graph shows the enrollment trend for medical students as well as basic medical sciences graduate students.

The Department of Public Health Sciences is the administrative and academic home of two degree programs granted through the University's Graduate School of Arts and Sciences: the Master in Public Health and the Master in Clinical Research. The Master in Public Health program is a nationally accredited degree program that provides graduate public health professional training in quantitative and qualitative research methodologies; health policy, law, and ethics; and translational and community-engagement strategies. The program focuses on the competencies professionals need to improve the health of individuals and populations. The individualized and interdisciplinary curriculum includes courses in the five core areas of public health and a wide range of interdisciplinary courses. Students complete a minimum of 42 credit hours of course work: core courses, courses in a chosen track, a field placement in a community health setting, and a culminating experience project. The following dual degrees options are available: MD-MPH, JD-MPH, MBA-MPH and MPP-MPH. Graduates are prepared for a variety of positions in health care and research, community health, and health policy. The Master of Science Program in Clinical Research (MS-CR) in the Department of Public Health Sciences is an interdisciplinary graduate degree program that provides training to health and medical professionals who desire and need quantitative and analytic skills in patient-oriented and translational research, as well as more traditional clinical investigation. Using an interdisciplinary blend of biostatistics, epidemiology, clinical trial design, medical informatics, and health services research, the

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MS-CR program equips clinical researchers with the statistical and data management tools needed to conduct translational clinical and comparative effectiveness studies in medical care. Another central activity of the school is resident education, also known as graduate medical education.. This is the continued training of future physicians who have graduated from medical school but have not yet achieved independence within a specialty. The Health System has approximately 780 residents and fellows participating in 96 training programs. The Office of Continuing Medical Education of the SOM/Health System is an ACCME (Accreditation Council for Continuing Medical Education) accredited sponsor of continuing medical education (CME) for physicians and other health professionals. U.Va.-sponsored CME programs include specialty and sub-specialty departmental conferences; special seminars; international, national, and regional meetings; activities developed with other organizations and specialty societies; mini-fellowship opportunities; and enduring materials (self-paced learning). Through the CME program and the Center for Telehealth, U.Va. offers access to educational and clinical resources for physicians, other health professionals, and patients, regardless of geographic location. Access to knowledge, both traditional and in increasingly new forms and technologies, is essential for the research, education, and patient care missions of the Health System. The Claude Moore Health Sciences Library (HSL) monitors and seeks out potentially important trends and makes them available to the community through education, hands-on experience, or general awareness. Information about changing publication impact metrics, access to innovative education material, and data management resources are examples of expertise that librarians provide for the Health System. By forming collaborative relationships, such as providing a home for the Bioinformatics Core, the HSL becomes a nexus of knowledge-based services. The HSL plays a role in stimulating collaboration by providing useful spaces, seating, and equipment that offer a fruitful and attractive environment for reflection and interaction. Patient Care The SOM, with its partners in the Health System, provides excellence, innovation, and superlative quality in the care of patients, the training of health professionals, and the creation and sharing of health

knowledge. SOM faculty are innovators in offering new treatments to patients, bringing research breakthroughs to patient care, harnessing new technologies to reach out to underserved populations, and restructuring clinical approaches and facilities to better meet patients’ needs. Revenue from the clinical mission provides necessary support for the education and research missions – which, in turn, provide the physicians with knowledge and new and more effective treatments in the clinical arena. Research Research at the SOM is based on a collaborative model and built around multidisciplinary teams of basic and clinical scientists who are organized to answer disease- or organ-based problems. This approach builds upon the strength of the basic science departments, three of which rank among the top 10 in the nation in National Institutes of Health funding, and on several areas of research excellence within the clinical departments. The School ranks #25 in the U.S. News & World Report annual rankings of research medical schools.

Discoveries being made in these laboratories fuel a translational research effort aimed at bridging the gap between bench and bedside and translating promising laboratory findings rapidly into clinical applications for patients in the Medical Center and wherever medicine is practiced. As an example of this effort, last year the U.Va. Cancer Center was successful in competing for a five-year renewal of its National Cancer Institute (NCI) funding and is one of only two NCI-designated Cancer Centers in the state. Strategic Direction The Decade Plan is a planning effort implemented in 2002 as a collaboration of the SOM, the Medical Center, the University Physician’s Group (UPG), the HSL, and the School of Nursing. It provided the framework for “Move as One,” a consolidated initiative that focuses on Health System-wide collaboration for

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development and innovation in areas such as patient service, translational research, professionalism in teaching, and service to the community. The Decade Plan has transitioned to a strategic plan developed with a focus on advancing the care provided to patients through exceptional medical skill, the most advanced medical technology, and greater access to U.Va. health professionals through community outreach activities and increasing clinical activities on Grounds. Clinical excellence will be the driver of the virtuous cycle that encompasses the education of physicians and medical scientists and the bench-to-bedside and back-to-bench research, which, in turn, develops and differentiates the clinical enterprise. In 2012-13, progress was noted in several important areas:

The third year of the Next Generation curriculum

was implemented.

The graduate school curriculum for Ph.D. students was revamped and implemented as a vibrant, interdisciplinary program that integrates formal course work, independent laboratory research, and exposure to clinical and translational aspects of disease .

The SOM collaborated with the Schools of

Education, Business, Law, Nursing, Engineering, and Leadership and Public Policy, as well as individuals with scientific expertise relevant to specific products or devices, to establish the Virginia Center for Translational and Regulatory Sciences (VCTRS). The inaugural director of VCTRS, who was formerly the Vice President for Global Regulatory, Strategy, Policy and Safety of Merck & Company, was appointed in March 2013.

The SOM, Medical Center, and UPG continue to

build on outreach efforts such as the purchase of the Hematology-Oncology Patient Enterprise physician practice with the acquisitions of Culpeper Medical Associates, Albemarle Arthritis, affiliations with MedExpress and Health Grades, and the soon-to-open clinic at Zion Crossroads.

The SOM and Medical Center are collaborating on the establishment of three Centers of Excellence in areas of focus identified by the strategic plan – Cardiovascular, Neurosciences, and Cancer. Fifteen million dollars has been allocated to fund groundbreaking clinical and

translational research that aligns with the strategy.

The Fund for the Future, established in 2007-08 through agreement between the Medical Center and the SOM, has provided a mechanism for the Medical Center to invest directly in the SOM. Actual and planned disbursements from the Fund through the remainder of 2012-13 and in 2013-14 include:

Anticipated 2012-13 and 2013-14 Funding From SOM Funds for the Future (in Millions)

Microbiology chair package ($6.7 Million) $5.90 Public Health Sciences chair package ($3 Million) $2.20

Jordan Hall HVAC Renovation & Contingency $2.70

Department of Medicine Block Grant Support $2.50

Department of Surgery Chair Renewal $2.30 Radiology Research Infrastructure Support $1.30 Biochemistry Chair Package $1.10 Blake Center Renovations $1.00 Medical Education Building Debt Service $0.50 Cyclotron Renovations $0.30 Cyclotron/PET Operations $0.20 Cell Biology $0.20 Total $20.20

2013-14 Operating Budget The SOM operating budget, which is consolidated in the University budget, excludes clinical operations and is funded through a traditional centralized budget target and self-generated grants, contracts, and private resources. For 2013-14, 57 percent of the SOM operational budget, exclusive of clinical operations, is funded from grants, contracts, and F&A distributions. Approximately 23 percent is provided from endowment distribution and gifts, while 20 percent is from tuition and state general funds.

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The recent trend in F&A generated by the School is exhibited below:

If the clinical operations of the UPG are included, the funding picture of the SOM changes dramatically. The below chart demonstrates that when clinical operations are included, clinical operations are the primary funding source of the SOM (52 percent). In this view, grants, contracts, and F&A recoveries generate 28 percent; private resources comprise 11 percent; and tuition and state general funds provide 9 percent.

Excluding the UPG clinical operations, the SOM’s 2013-14 operating budget (see page 75) is $271.3 million. The primary spending initiatives are faculty compensation (39 percent), other than personal services, net of recoveries (33 percent), staff salaries and wages (19 percent), and GTA/ GRA stipends and graduate fellowship support (6 percent). Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state . As part of the new clinical strategy, the SOM and Medical Center are jointly investing in the Clinical Centers of Excellence, clinical research programs, and in clinical research infrastructure. The SOM is also contributing to the recruitment package for the

new Cancer Center director to further the missions of clinical excellence and bench-to-bedside research. The SOM’s planned investments of over $50 million in VCTRS and the Ivy translational research center support the goals to right-size its research portfolio and enhance its basic science –translational partnerships. These investments are funded primarily from endowments and restricted gifts. The SOM plans to invest $5 million over the next four years in clinical outreach initiatives and an additional $1 million in the year thereafter. The SOM is providing the Department of Medicine with $5 million over three years beginning with fiscal year 2014, which will be matched with a contribution from the Medical Center. This strategic investment in the Department of Medicine will support the goals of expanding the School’s clinical footprint. Finally, the SOM and Medical Center faculty and staff are all committed to achieving improved quality and safety rankings. Most notably, the department chairs pledged to put their chair support funding from the School and the Medical Center at risk, contingent on the achievement of specific quality (Q17) goals by each department. The School and Medical Center have collectively pledged an additional $1.05 million towards this initiative. Capital Plan The SOM has committed to purchase 560 Ray C. Hunt Drive in the Fontaine Research Park to house the Ivy Translational Research Program. Significant investments are planned during the upcoming fiscal year to convert the space into a premier facility for translational research. These renovations, along with the cost of the purchase, will be funded primarily from a gift from the Ivy Foundation. Additionally, the School continues to commit to renovating and optimizing current space on the primary campus; $3 million is commitment to renovate a portion of MR-4 for a translational Biomedical Engineering/Cardiovascular Research lab. The renovation of the Microbiology lab space in Old Jordan Hall continues and is anticipated to be completed in fiscal year 2014. The School is also committed to renovating a portion of the Old Medical School Barringer wing to create permanent space for the Clinical Research Unit and provide the Department of Neurosurgery with updated administrative space.

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With a strong focus on investing in translational research, the SOM intends for these investments to provide the necessary space to foster translational research and facilitate the shift in its research portfolio towards clinical and translational programs.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R2485 MBU: MD-School of Medicine

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals

281.3 36,513,333 507.0 50,307,869 10.6 949,390 139.0 23,870,854 14.8 1,479,435 ‐ ‐ 952.6 113,120,881

171.5 10,794,533 358.7 25,389,696 4.1 294,519 148.0 9,789,681 25.7 1,685,852 ‐ ‐ 708.0 47,954,281

‐ 176,336 ‐ 3,432,435 ‐ 42,073 ‐ 2,000,157 ‐ 19,186 ‐ ‐ ‐ 5,670,187

6.5 200,000 149.6 4,426,617 ‐ ‐ 10.2 599,485 0.4 11,501 ‐ ‐ 166.7 5,237,603

459.3 47,684,202 1,015.3 83,556,617 14.7 1,285,982 297.2 36,260,177 40.8 3,195,974 1,827.3 171,982,952

0.0 28,403,430 ‐ 58,589,067 ‐ 700,995 ‐ 17,757,973 ‐ 2,439,400 ‐ ‐ 0.0 107,890,864

‐ 1,931,175 ‐ 8,875,809 ‐ 137,687 ‐ 6,656,578 ‐ 6,125 ‐ ‐ ‐ 17,607,374

‐ ‐10,376,085 ‐ ‐21,528 ‐ ‐ ‐ ‐ ‐ ‐3,559,945 ‐ ‐ ‐ ‐13,957,557

‐ 2,588,351 ‐ 8,754,821 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 11,343,172

‐ 3,708,351 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,708,351

0.0 26,255,222 76,198,169 838,682 24,414,551 ‐1,114,420 0.0 126,592,204

459.3 73,939,423 1,015.3 159,754,786 14.7 2,124,664 297.2 60,674,728 40.8 2,081,554 1,827.3 298,575,155

227.4 38,068,415 343.0 40,275,368 5.5 1,714,758 130.7 24,220,329 14.6 1,610,051 ‐ ‐ 721.2 105,888,921

183.5 12,885,918 383.8 24,644,474 5.8 539,211 141.3 9,296,014 30.9 1,670,653 ‐ ‐ 745.2 49,036,270

‐ 246,094 ‐ 1,033,115 ‐ ‐ ‐ 626,915 ‐ 26,442 ‐ ‐ ‐ 1,932,566

13.8 112,650 81.6 2,725,399 ‐ ‐ 4.3 244,244 ‐ ‐ ‐ ‐ 99.6 3,082,293

424.6 51,313,077 808.4 68,678,356 11.3 2,253,969 276.2 34,387,502 45.5 3,307,146 1,566.0 159,940,050

‐ 12,540,471 ‐ 71,246,863 ‐ 575,536 ‐ 17,834,302 ‐ 2,197,610 ‐ ‐ ‐ 104,394,782

0.0 1,945,817 ‐ 6,517,682 ‐ 125,834 ‐ 5,731,960 ‐ ‐ ‐ ‐ 0.0 14,321,293

‐ ‐10,547,693 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐3,245,849 ‐ ‐ ‐ ‐13,793,542

‐ 1,817,230 ‐ 8,753,571 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,570,801

‐ ‐4,132,840 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐4,132,840

0.0 1,622,985 86,518,116 701,370 23,566,262 ‐1,048,239 0.0 111,360,494

424.6 52,936,062 808.4 155,196,472 11.3 2,955,339 276.2 57,953,764 45.5 2,258,907 1,566.0 271,300,544

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SCHOOL OF NURSING Overview of Operations Established in 1901, the School of Nursing (SON) nurtures compassionate, empathic nurse leaders who excel independently and as members of health care teams, while understanding how to remain resilient and inspiring their peers to do so, too. Part of the University’s Health System that includes the Medical Center, School of Medicine, and Claude Moore Health Sciences Library, the SON is ranked by U.S. News & World Report among the top two percent of nursing schools in the nation. Enrollment for academic year 2012-2013 is 716 students: 365 undergraduates and 351 graduate students. Programs of study include the traditional Bachelor of Science in Nursing (BSN) and Registered Nurse to Bachelor of Science in Nursing (RN to BSN) undergraduate degrees, a variety of Master of Science in Nursing (MSN) degrees, several post-master’s programs, and two doctoral degree programs, the Doctorate of Nursing Practice (DNP) and PhD. The SON is a pioneer in establishing new and novel programs for nurses, including the Clinical Nurse Leader (CNL) program, the first in the country and the only such program in Virginia and Washington, D.C. The CNL program is a master’s entry degree program for non-nurses with bachelor’s degrees in other areas. Another new degree, the DNP, was established in 2006 and offers a terminal degree for nurse-clinicians. Post-master’s programs are offered in primary care, acute care, psychiatric-mental health, and wound, ostomy, and continence. Two largely online master’s degree tracks include certificates in community and public health leadership and health systems management.

Among the current 95 full- and part-time faculty at the School, there are 19 American Academy of Nursing fellows, seven National Academy Fellows, and 11 endowed professorships that have attracted an internationally recognized group of scholars from a wide cross-section of disciplines. Yet, with a wave of recent and pending retirements, the SON is relying

more heavily on single-course and adjunct faculty while conducting intensive searches for additional tenure-track faculty. Recent trends are causing a swell in the student-to-faculty ratio, as shown on the following graph:

In December 2012, the SON completed a $2.2 million renovation and expansion of the 9,200-square foot Mary Morton Parsons Clinical Simulation Learning Center (CSLC), located in McLeod Hall. The center is comprised of the Theresa A. Thomas Intensive Care Simulation Laboratory, the Reed Physical Assessment Laboratory, two procedural labs, and a mock isolation unit designed to teach students about the critical steps of infection control. The CSLC's expansion incorporates an operating room suite, a virtual reality lab with seven high fidelity patients, and a simulation research lab. The aim of the renovation was to painstakingly mimic hospital settings and acute care situations that many students will ultimately face as nursing professionals. Strategic Direction The SON’s Strategic Plan for 2010-2015 was developed in partnership with faculty, staff, students, and community partners. The School’s goals are to: 1. Cultivate the SON’s multicultural community of

scholars and researchers;

2. Create innovative models of education and practice; and

3. Foster well-being and a collegial spirit in a healthy work environment.

The School also includes among its goals to be a top ten school of nursing, double external research funding, and double external funding for innovative academic programs by the year 2020.

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The SON’s goals are well aligned with those of the University and the Health System at large in terms of work on Grounds, at sites throughout the community, and on projects around the world. The School urges a collaborative approach, regularly tackles cross-disciplinary projects, and fosters among its students the understanding that partnerships are the best route to the delivery of sound, empathic care that is safe and of the highest quality. By expanding key program areas – including the RN to BSN program – as well as access to the CNL and doctoral-level programs, the SON, with the University as a whole, is responding in unison to the nation’s need for more STEM-H graduates to address professional shortages in science, technology, engineering, math, and health care. The SON acknowledges the need for more baccalaureate-prepared nurses and nursing faculty and, accordingly, is working to assuage the national nursing shortage and the national shortage of nursing professors by interacting with and guiding the study of current and prospective students. COLLABORATIVE: The SON has long been a leader in interprofessional education (IPE), an effort that enables health care practitioners – future nurses- and physicians-to-be, among others – to practice working together in a rigorous, quantifiable, and quality-controlled manner. The School’s IPE program, which is regarded among the nation’s best, has expanded in concept and coursework since the 2011 $750,000 Macy grant. Fortified by that grant and the formalization of a new center, called U.Va. ASPIRE (Academic Strategic Partnership for Interprofessional Research and Education), the Schools of Nursing and Medicine, along with partners in the Health Sciences Library, have committed funding, effort, and energy to bolster U.Va.’s interprofessional programs. As part of the collaboration, all third-year nursing and medical students now must demonstrate their solid understanding of core competencies of collaborative practice through a series of mock-scenarios that mimic those they’ll encounter in real life. The SON has taken to heart the 2010 Institute of Medicine (IOM) mandate that team-based approaches be taught to all health care professionals, and its IPE courses are growing in strength, size, and clarity of vision. Through the web-based platform Blackboard Collaborate, students throughout Virginia access graduate nursing content and “live classroom experiences” in their own learning environment at home. This platform not only increases access, but also generates growth in the family nurse practitioner and pediatric nurse practitioner, public health nursing leadership, health systems management, and psych-

mental health programs. The School’s largely online programs, however, all require monthly in-person classroom interaction because students consider such time to be a critical ingredient to their success. Onerous as travel from afar can be, online students choose the School’s program because of the combination of flexible online coursework and periodic face-to-face interactions. Additionally, nursing professors offer access to courses, certifications, and professional development for veteran U.Va. Medical Center nurses. These regular interactions provide an opportunity to encourage practicing RNs to consider earning a baccalaureate degree, along with support from the Medical Center’s chief nursing officer. By 2014, the School’s aim is to double the size of the RN to BSN program, in full support and acknowledgement that 21st century health care requires ongoing education, while respectfully acknowledging an RN’s rich on-the-job knowledge. RESEARCH-CENTERED: The School offers students a multitude of opportunities to conduct research. Its undergraduate Distinguished Majors students conceive of, and carry out, research studies under the careful guidance of nursing mentors. Research opportunities for undergraduates will continue to expand, while graduate level capstone projects – a required “thesis” written during the students’ last year – offer master’s, post-master’s, and doctoral degree students a chance to flesh out relevant research topics of their own. Given their work with people and groups at hospitals and clinics throughout the Commonwealth of Virginia, SON students have a unique vantage that enables them to ask some of the big questions in health care that need addressing. Internships and international experiences (the latter of which about 10 percent of the School’s students tap into) are also unique and integral parts of the most well-rounded undergraduate and graduate study. SON students do what they see faculty doing: meaningful, relevant nursing research. Targeted around six research “clusters” – including rural health, integrative compassionate care, nursing history, oncology, aging, and child, young adult, and family health – SON faculty members conduct a wealth of research on critical topics. With some current major external grants, topics range from novel lung cancer decision aids, interprofessional education, and Alzheimer’s disease, to help for pregnant teens and tablet computers as a means of detecting domestic violence.

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The newly-christened Eleanor Crowder Bjoring Center for Nursing Historical Inquiry, one of just two nurse history centers in the U.S. and four around the world, is quickly becoming a central repository for important nursing artifacts; a dynamic, often digitized collection of journals, photographs, articles; and various memorabilia that can be pored over by students, professors, and researchers for generations to come. The history center offers students, clinicians, and others a sense of what nursing programs worked in times past – and what didn’t – lessons that ultimately inform today’s programs and health care reform as a whole. COMPASSIONATE: In a profession where burnout and “compassion fatigue” are rampant, the SON urges its students and colleagues in the Health System to learn ways to remain centered and whole, deal with grief and grieving, and, most critically, to care for themselves as a means of being a more compassionate caregiver. The School’s Compassionate Care & Empathic Leadership Initiative (CCELI) brings together nursing and medical students, faculty, working nurses, chaplains, physicians, and others to discuss meaningful, concrete ways to promote compassion and nurture resilience. The CCELI video (http://vimeo.com/54874862) provides a platform for discussion and a call to action for departments and individuals struggling with the intense stresses and complexities of care for chronically ill patients while having less time for care. The initiative also has offered methods of coping – through deep breathing exercises, meditation, yoga and other meditative practices – to student nurses-to-be. Contemplative practices and exercises (part of the School’s work with the Contemplative Sciences Center that includes retreats, keeping journals, and learning meditation) are interwoven into the curriculum at regular intervals. GLOBAL: The SON boasts a revolving door to the international community, both through its diverse faculty and the tight-knit collaborations they’ve cultivated with those abroad. That perspective – a global understanding of health and health care – remains essential for all nursing students practicing in an increasingly diverse society. The School has expanded its international exchange sites to include Australia, China, Columbia, Denmark, Grand Bahamas Island, Guatemala, Honduras, India, New Zealand, Nicaragua, and South Africa, and has established a “virtual exchange” program with the University of Lund in Sweden and the University of Venda in South Africa. Nursing students also participate in the Semester at Sea program.

A number of PhD and DNP students focus their research on global health issues, and the School continues to host visiting scholars from Denmark, Hong Kong, Sweden, Taiwan, Thailand, and Indonesia who provide intimate knowledge of health issues abroad. Here at home, the School’s undergraduates volunteer for a variety of extracurricular service projects that give them a vantage on vulnerable and underserved population at Madison House, Nursing Students without Borders, and the Remote Area Medical Clinic in Wise County, among many others. HEALTHY WORK ENVIRONMENT: People often say that nurses must look and sound like those people they treat, and in that regard, diversity in nursing really matters. The SON actively recruits racially-diverse faculty and continues to cultivate more racially-diverse students to join the ranks of its profession. As nursing professors have grown scarcer and highly sought-after, the School continues to stress the health of its working environment. The School offers a mentoring program for junior faculty, the Roberts Scholars Program, that provides protected time and funding to develop individual research programs and areas of study. Grant development resources also are available to support the preparation of National Institutes of Health research grant proposals. In addition to the faculty, the SON strives for its staff to be collegial, supportive, and collaborative as it works to make the School a place that is student-centered, focuses on research and practice, and serves Charlottesville, the Commonwealth, and the world. Ample opportunities for dialogue coupled with the dean’s open-door policy have made the SON a work environment that is respectful, caring, and warm. 2013-14 Operating Budget The SON is funded through a traditional centralized budget target, self-generated grants, contracts, and private resources, and support from the U.Va. Medical Center. For fiscal year 2013-14, 57 percent of the SON operating budget is from tuition and state general funds. Private funds (endowment distribution and gifts) provide 23 percent of funding, while grants, contracts, and F&A constitute 9 percent. The Medical Center supports 10 percent of total funding.

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The following two charts provide the recent trend on (1) grant funding to the SON and (2) F&A generated:

The School’s 2013-14 operating budget is $11.98 million (see the following page). Excluding recoveries, the operating budget is $13.36 million; the primary spending initiatives are faculty compensation (50 percent), staff salaries and wages (20 percent), and GTA/ GRA stipends, graduate fellowship support, and undergraduate scholarships (16 percent). Faculty support from sponsored programs is expected to increase by 151 percent, an additional $362,000 in 2013-14. This is a conservative estimate and includes only currently-funded projects and two small potential awards with combined budgets totaling less than $100,000.

Expenditures for endowed professorships will increase by $331,000 in 2013-2014, compared to revised 2012-2013, due to new appointments. In 2012-2013, scholarships and fellowship awards were slightly reduced to resolve cash deficits in the endowment accounts. These awards will increase by $89,000 in 2013-2014. The School’s 2013-14 operating budget includes an allocation of $60,040 related to fall 2013 enrollment growth. The actual distribution will be made based on enrollment in the classes this fall. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Retirements of both faculty and staff provide an opportunity for new hires that reflect strategic priorities. The SON is recruiting key faculty by specialty with the focus on developing academic leaders and researchers. Since 2011, 12 faculty have retired or moved to other institutions. The SON has hired 10 faculty, four of whom will start in the upcoming academic year 2013-2014. The below graph demonstrates the average SON faculty salary as compared to the 60th and 75th percentile of AAU peers.

Capital Plan The SON has no current or upcoming capital projects planned.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R2465 MBU: NR-Nursing School

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries

Subtotal

MBU Totals

44.2 4,492,394 3.1 239,746 0.5 52,960 3.4 861,975 0.4 30,700 ‐ ‐ 51.6 5,677,775

24.9 2,474,373 1.8 105,555 3.5 286,137 3.2 89,846 ‐ ‐ ‐ ‐ 33.4 2,955,911

‐ 393,621 ‐ 175,174 ‐ ‐ ‐ 78,464 ‐ ‐ ‐ ‐ ‐ 647,259

4.3 275,000 ‐ 57,698 ‐ ‐ ‐ 2,401 ‐ ‐ ‐ ‐ 4.3 335,099

73.4 7,635,388 4.9 578,173 4.0 339,097 6.6 1,032,686 0.4 30,700 89.2 9,616,044

‐ 1,492,799 ‐ 410,624 ‐ ‐ ‐ 644,381 ‐ 38,070 ‐ ‐ ‐ 2,585,874

‐ 936,459 ‐ 207,045 ‐ ‐ ‐ 808,973 ‐ ‐ ‐ ‐ ‐ 1,952,477

‐ 92,945 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 92,945

‐ ‐1,372,600 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐1,372,600

1,149,603 617,669 1,453,354 38,070 3,258,696

73.4 8,784,991 4.9 1,195,842 4.0 339,097 6.6 2,486,040 0.4 68,770 89.2 12,874,740

47.3 4,735,163 6.2 634,759 0.7 72,526 6.6 1,192,392 0.2 23,820 ‐ ‐ 60.9 6,658,660

27.6 1,850,656 1.0 34,645 4.0 254,034 1.6 104,746 ‐ ‐ ‐ ‐ 34.2 2,244,081

‐ 366,836 ‐ 88,120 ‐ ‐ ‐ 37,101 ‐ ‐ ‐ ‐ ‐ 492,057

4.3 275,000 ‐ 49,783 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4.3 324,783

79.1 7,227,655 7.2 807,307 4.7 326,560 8.2 1,334,239 0.2 23,820 99.4 9,719,581

‐ 816,746 ‐ 357,063 ‐ ‐ ‐ 521,073 ‐ 31,116 ‐ ‐ ‐ 1,725,998

‐ 887,939 ‐ 48,902 ‐ ‐ ‐ 880,785 ‐ ‐ ‐ ‐ ‐ 1,817,626

0.0 92,945 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 92,945

‐ ‐1,376,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐1,376,800

0.0 420,830 405,965 1,401,858 31,116 0.0 2,259,769

79.1 7,648,485 7.2 1,213,272 4.7 326,560 8.2 2,736,097 0.2 54,936 99.4 11,979,350

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UNIVERSITY LIBRARY Overview of Operations The University Library (UL) enables research, teaching, and learning through strong collections, versatile spaces, and exceptional public services in support of faculty and students. Aligning with academic priorities, the UL serves the University’s faculty, undergraduates, and graduate students from all disciplines and is open to the public and to scholars worldwide. The UL is also nationally recognized as a leader in collaborations with peer institutions to solve some of the big challenges faced by all academic libraries, such as digital preservation. Collections The UL provides access to a rich array of digital and physical scholarly materials that include archives; 5 million print and digital books; 70,000 journals; hundreds of thousands of non-text materials such as images, videos, databases, etc.; and over 16 million manuscripts. The world-class collection of rare and unique materials is exceptionally strong in American history, literature, and culture. The UL actively develops the Library’s online catalog (VIRGO) to maximize the discovery and use of both physical and digital resources. Spaces The UL’s multiple libraries offer spaces for collaboration and study, discipline-specific physical collections and access to digital collections, and specialized expertise and tools for using Library resources. Undergraduates are especially heavy users of library spaces, and six libraries offer evening and weekend access, including Clemons Library, a 1,500-seat facility that closes only between midnight and early morning on Saturday and Sunday when classes are in session. Services Library staff contribute daily to the academic endeavor, from building innovative programs for the digital humanities to answering a research question texted by a student. Library staff often collaborate with faculty on their research and teach students how best to use and evaluate collections. The Scholars’ Lab, Digital Media Lab, and Data Management and Statistical Consulting groups offer specialized expertise and tools for many forms of digital scholarship including digital humanities, rich media, data-intensive research, and data services dedicated to the collaborative collection, management, use, and preservation of data. In addition to face-to-face services, the UL actively develops virtual services that maximize the use of web-accessible content and ensure the preservation of born-digital

material. The UL is nationally recognized as a leader in innovative services; examples include LEO (faculty delivery service), Hydra and Fedora (open source technologies to support repositories for digital content), and Praxis (graduate student fellowship program in the digital humanities). Contributions to born-digital content and new tools and models for digital scholarship also have brought the UL recognition. Strategic Direction The UL’s collections, services, and spaces directly support the core mission of the University by providing the resources necessary for faculty and student scholarship. To help position the University as a leader in the next decade, the UL priorities support University-wide objectives and align with school missions: Digital Scholarship programs - Since the early 1990s, the UL has nurtured and invested in the projects, programs, and centers that establish the University as a world leader in digital humanities (DH). This field has seen explosive growth in the age of big data, as technology transforms research agendas in core liberal arts disciplines and enables new forms of interpretation and exchange. Moving outward from the Library’s Scholars' Lab, with its strong emphasis on experimental humanities and methodological training for the next generation of digital scholars, the Library aims to re-energize faculty leadership in DH at the University through renewed focus on cross-Grounds research collaborations and by developing its role as crossroads and laboratory for practitioners from all areas of the University. Currently, while there are many DH initiatives underway, collaboration will enable the University to achieve distinction. Data-intensive scholarship – Responding to the growth in data-intensive research across disciplines, the UL has realigned existing resources and hired new expertise to support the acquisition, use, and management of complex data sets. New services are being developed to complement the activities of related initiatives, such as the College’s Quantitative Collaborative, and to expand the available corpus of data resources. Support for new forms of teaching and learning - Through technology-rich spaces like the Robertson Media Center, the UL will promote innovative teaching by offering support for and training in educational technologies with the potential to transform the classroom experience. Offering new

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services that improve research skills in the digital age and enable original and creative coursework in many forms of media will enhance student learning and success. As steward of the University’s scholarship, the UL must also respond to changes in the research library landscape that affect access to scholarly resources and pursue innovative paths to ensure the preservation of important scholarship for future generations: Collection development – To address the ever-rising cost of publications, especially journals, the UL is exploring partnerships with peer research libraries and experimenting with an economically sustainable model for funding the acquisition of materials to support the University’s teaching, learning, and research. Institutional repository for U.Va. scholarship - The UL is expanding its efforts to provide online access and preservation of the scholarship created by the U.Va. community through Libra, the institutional repository. Electronic deposit of theses and dissertations into Libra will replace paper deposit for several University schools this year, and datasets are now accepted. Libra is also poised to grow as a repository for open-access scholarship, aligning the University with national and international trends in digital scholarship and the growing trend for funders to require open access to funded research. Preservation strategies - In addition to preserving physical materials that are essential to research, teaching, and scholarship, the UL must be equally effective at ensuring the preservation of the growing corpus of digital scholarship and ephemera. Copyright, proprietary software, and rapidly changing formats and technologies create significant challenges for both access and authenticity of digital content. The UL will develop a strategy and implement policies to ensure preservation and access to its most valuable materials regardless of format. The UL will also collaborate with other institutions to investigate multiple solutions for preservation to prevent single points of failure. Chief among these collaborations is the Academic Preservation Trust (APTrust), a multi-institutional effort led by the UL to build an aggregate repository solution for the preservation of digital content from multiple institutions (www.aptrust.org). Incubated in 2012-13, APTrust garnered funds and support from 11 peer institutions to build a prototype for digital preservation in the cloud and serve as a founding

node for the Digital Preservation Network (DPN), a companion effort championed by the University’s VP/CIO. In its second year, APTrust will move out of incubation into production mode, providing a secure preservation environment for digital content and laying a foundation for a new model of collaborative service development by academic institutions. Space renewal - Over the next 10 years, the UL will continue to pursue funding to renew three spaces essential to its strategic goals. Renewing the aging Alderman Library will give the University an up-to-code, beautiful, and productive facility that shows the University’s commitment to sustainability and recruiting and retaining the very best scholars. A proposed University Conservation Center will pair conservation of the University’s rare and unique collections with a new teaching and learning environment for scholars and observers. Finally, renewing the Fiske Kimball Fine Arts Library will improve the learning environment in the University’s thriving Arts Grounds area to better support research, collaborative work, and the use of technology. 2013-14 Operating Budget The UL is funded through a centralized budget target and self-generated private resources, grants, and contracts.

The UL’s 2013-14 operating budget (see page 84) is $27.1 million, with 79 percent from tuition and state general funds. Private funds (endowment distribution, gifts) represent 18 percent of funding, while grants, contracts, and F&A constitute 3 percent. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Successful fundraising will continue to be essential to ensure strong collections and services while retaining the flexibility to innovate. One-half of the UL’s total budget is spent on collections and staff who select, acquire, describe, and preserve materials so they are accessible now and will remain so in the future. Strong

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collections are essential to the University’s standing in the scholarly community and often play a significant role in the successful recruitment and retention of faculty. Another one-third of the budget covers direct services to faculty and students, including services for digital scholarship and online access to digital content. Facility support and basic staffing for the UL’s 10 spaces (physical facilities) is currently a small part of the budget. Administrative costs make up the remaining 10 percent of the budget.

University Library Expenditures 13-14 Budget (% of total)

Collections Purchase/lease of materials Selection/Curation Metadata Digital & physical storage Preservation

$13,548,404

(50%)

Services Interlibrary loan and scanning services Information services Online services Technology and research services

$7,858,075

(29%)

Spaces Staffing Technology support Facility support

$2,981,148

(11%)

Administration Senior leadership Finance & HR staff Development & Communications

$2,709,680 (10%)

Total Library Budget

$27,097,307

Together, the UL and the professional school libraries (Darden, Health Sciences, and Law) spend less per full-time student than the library systems at many peer institutions, as the chart below demonstrates.

2010-11 University Library Expenditures

University of Michigan $63,735,669 40,225 $1,548.48

Cornell University $49,470,729 22,033 $2,245.30

University of Pennsylvania $42,427,991 21,329 $1,989.22

UNC, Chapel Hill $38,135,416 24,222 $1,574.41

Duke University $40,714,148 14,924 $2,728.10

Indiana University $33,370,911 37,609 $887.31

Emory University $37,737,236 12,773 $2,954.45

Johns Hopkins University $36,881,269 13,094 $2,826.65

University of Virginia* $33,795,407 20,950 $1613.15 *Includes libraries in Darden, Health Sciences, and Law Data from Association of Research Libraries 2010-11 ARL Statistics

Capital Plan There are no ongoing projects in construction or planning. Currently, projects in the capital program include the renewals of Alderman Library ($120 million) and Fiske-Kimball Fine Arts Library ($19 million). Both projects are contingent on state funding, with the Alderman Library slated for consideration by the 2014 General Assembly session.

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University of Virginia - MBU SummaryExec Level: R1380 VP: PV-VP/Provost, Mbu Level: R1530 MBU: LB-Library-UVa

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Subtotal

MBU Totals

66.4 5,457,595 0.8 95,000 0.8 77,573 2.0 149,800 ‐ ‐ ‐ ‐ 69.9 5,779,968

157.6 9,026,093 7.0 728,113 1.0 92,200 3.7 283,275 1.0 82,380 ‐ ‐ 170.3 10,212,061

‐ 20,615 ‐ 44,000 ‐ 15,000 ‐ 69,000 ‐ ‐ ‐ ‐ ‐ 148,615

224.0 14,504,303 7.7 867,113 1.8 184,773 5.7 502,075 1.0 82,380 240.2 16,140,644

‐ 6,921,810 ‐ 652,821 ‐ 1,572,684 ‐ 1,507,800 ‐ 391,568 ‐ ‐ ‐ 11,046,682

‐ ‐ ‐ 48,000 ‐ ‐ ‐ 60,000 ‐ ‐ ‐ ‐ ‐ 108,000

6,921,810 700,821 1,572,684 1,567,800 391,568 11,154,682

224.0 21,426,113 7.7 1,567,934 1.8 1,757,457 5.7 2,069,875 1.0 473,948 240.2 27,295,326

60.3 5,414,000 0.1 6,048 0.5 75,073 2.0 147,330 ‐ ‐ ‐ ‐ 62.8 5,642,451

171.8 9,995,838 0.6 39,443 ‐ ‐ 4.0 336,473 ‐ ‐ ‐ ‐ 176.4 10,371,754

‐ ‐ ‐ 4,000 ‐ ‐ ‐ 60,000 ‐ ‐ ‐ ‐ ‐ 64,000

‐ 30,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 30,000

232.1 15,439,838 0.7 49,491 0.5 75,073 6.0 543,803 239.3 16,108,205

‐ 5,850,305 ‐ 761,349 0.0 1,399,448 ‐ 2,660,000 ‐ 228,000 ‐ ‐ 0.0 10,899,102

‐ ‐ ‐ ‐ ‐ ‐ ‐ 90,000 ‐ ‐ ‐ ‐ ‐ 90,000

5,850,305 761,349 0.0 1,399,448 2,750,000 228,000 0.0 10,989,102

232.1 21,290,143 0.7 810,840 0.5 1,474,521 6.0 3,293,803 228,000 239.3 27,097,307

84

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PRESIDENT Overview of Operations The mission of the President’s Office is to create an environment in which the time, leadership, and influence of the president, vice presidents, deans, and senior leaders are used to the greatest possible effect— with the ultimate goal of propelling the University into the top tier of universities, public and private, in the country and in the world. This mission is best achieved by pursuing strategic goals, re-deploying resources from lower to higher priorities, and improving productivity and efficiency. Core functions include communications, external relations, event management, and strategic resource management. The President’s Office includes Federal Relations, regional business development, the Office of Equal Opportunity Programs, the Office of the Board of Visitors, General Counsel, and the Miller Center. The President’s Office also includes units that provide services to the University community, such as Major Events (which oversees Fall Convocation, Graduation, and Founder’s Day), ExecTech (which provides technology and computer maintenance for the President’s Office and 23 other administrative areas), University Communications (which formulates and implements communication strategies), and Executive Search Group (which recruits executive leadership talent to the University). Strategic Direction The mission of the President’s Office is to strive for excellence and common ground while positioning U.Va. as one of the top universities in the nation and the world. Overall strategic goals include:

1. Using the broad University view afforded from the President’s Office to make connections among units and individuals on behalf of the president and the University;

2. Positioning the University as a thought

leader in higher education, nationally and globally;

3. Providing the necessary support for the

University to recruit and retain top faculty who have the capacity to distinguish U.Va. in teaching, research, and scholarship;

4. Strategically allocating staff, time, and other

resources to align with mission of the University and the vision of the president;

5. Advocating funding for science agencies

and education toward the goal of making U.Va. one of the nation’s top research universities; and

6. Using the president’s home at Carr’s Hill to

cultivate internal and external constituents, with the home open for more than 100 events annually.

2013-14 Operating Budget The President’s Office and reporting areas are funded through a traditional centralized budget target, as well as self-generated private resources. Excluding the vice presidential areas reporting directly to the president, 40 percent of the President’s Office 2013-14 operating budget is from tuition and state general funds. Private restricted funds (endowment distributions and gifts) represent 33 percent of funding, while private unrestricted funds (endowment distribution and gifts) represent 26 percent.

For the President’s Office and direct reporting units excluding vice presidents, the 2013-14 operating budget (see page 87) is $17.8 million, with the primary spending on compensation (83 percent). The remaining expenditures are primarily in OTPS expenditures and include communications, equipment, special events, and travel for presidential trips and donor cultivation. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state.

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For the President’s Office and all reporting units including vice presidents, the 2013-14 operating budget is $222.2 million. This includes all areas reporting to the vice presidents for Diversity and Equity, Student Affairs, Research, Information Technology Services, and University Advancement, as well as to the Director of Athletics. The president also oversees the President’s Fund for Excellence, which was authorized by the Board as an emergency measure in response to the loss of $52 million in state general funds in 2002 and later made permanent as a means to provide one-time, short-term funding when base budget is not available for significant activities. The Fund, $3 million annually, is allocated from the University’s unrestricted endowment distribution and used at the president’s discretion. Capital Plan The Miller Center retains its commitment to “Phase III” in the 2016-18 cycle, without amendment at this time. The Rotunda project has been funded by the General Assembly.

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University of Virginia - MBU SummaryExec Level: R0005 VP: PR-President's Office, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Recoveries

Subtotal

MBU Totals


Subtotal

OTPS

Recoveries

Subtotal

MBU Totals

24.9 3,851,145 0.1 12,188 7.7 1,229,741 10.9 1,730,255 ‐ ‐ ‐ ‐ 43.6 6,823,329

39.3 3,199,423 0.3 17,719 22.1 1,612,856 21.1 1,633,082 5.5 427,250 ‐ ‐ 88.2 6,890,330

‐ 183,975 ‐ 6,719 ‐ 324,876 ‐ 409,393 ‐ 22,000 ‐ ‐ ‐ 946,963

‐ ‐ ‐ ‐ ‐ ‐ ‐ 241 ‐ ‐ ‐ ‐ ‐ 241

64.2 7,234,543 0.4 36,626 29.7 3,167,473 32.0 3,772,971 5.5 449,250 131.8 14,660,863

‐ 2,270,784 ‐ 9,192 ‐ 4,608,466 ‐ 769,100 ‐ 96,025 ‐ ‐ ‐ 7,753,567

‐ ‐869,741 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐472,250 ‐ ‐ ‐ ‐1,341,991

1,401,043 9,192 4,608,466 769,100 ‐376,225 6,411,576

64.2 8,635,586 0.4 45,818 29.7 7,775,939 32.0 4,542,071 5.5 73,025 131.8 21,072,439

24.9 3,803,472 ‐ 292 6.4 1,038,937 12.0 1,870,871 ‐ ‐ ‐ ‐ 43.2 6,713,572

38.3 3,382,994 0.0 632 24.1 1,854,882 20.2 1,652,140 6.0 667,000 ‐ ‐ 88.5 7,557,648

0.0 35,360 ‐ ‐ 0.0 253,926 ‐ 259,876 0.0 30,000 ‐ ‐ 0.0 579,162

63.1 7,221,826 0.0 924 30.5 3,147,745 32.1 3,782,887 6.0 697,000 131.7 14,850,382

0.0 929,452 ‐ ‐ 0.0 2,743,536 ‐ 933,406 0.0 105,000 ‐ ‐ 0.0 4,711,394

0.0 ‐930,562 ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐787,000 ‐ ‐ 0.0 ‐1,717,562

0.0 ‐1,110 0.0 2,743,536 933,406 0.0 ‐682,000 0.0 2,993,832

63.1 7,220,716 0.0 924 30.5 5,891,281 32.1 4,716,293 6.0 15,000 131.7 17,844,214

87

DIRECTOR OF ATHLETIC PROGRAMS Overview of Operations The Director of Athletic Programs oversees the University’s Intercollegiate Athletics Programs and Intramural-Recreational Sports. Athletics Athletics is an integral part of the University's commitment to educational excellence. Its mission is to enhance and support the intellectual purpose of the University and its exemplary academic standards and traditions. Critical to the Athletics mission are high academic achievement; nationally competitive and successful teams; comprehensive integration of student athletes within the University and local communities; a strict adherence to NCAA, ACC, and University rules and regulations; fiscal integrity, which is embodied through the generation and efficient use of resources; and the attraction and retention of the highest quality student athletes and staff, which includes equitable opportunities for women and minorities. Athletics pursues its mission by uniting the varied constituencies of the University community through its intercollegiate and intramural programs. These programs are designed to build support for, and add value to, the academic purposes of the institution while developing students with strong values of leadership, sportsmanship, equity, citizenship, physical fitness, teamwork, and a commitment to excellence. The operating principles of Athletics require that in pursuing its mission, it will consistently provide exemplary service to all of its internal and external constituencies. Athletics’ operations support 12 intercollegiate sports for men and 13 for women, providing competition opportunities for 723 student athletes, 479 of whom receive scholarship support. Intramural-Recreational Sports The Department of Intramural-Recreational Sports (IM-Rec Sports) addresses student and faculty life outside the classroom as it relates to health, wellness, fitness, and overall quality of life through enriching and supporting healthy lifestyles and aiding in employee recruitment/retention. IM-Rec Sports serves the diverse needs of the entire University community, fostering fellowship and meaningful interactions through high-quality programs, facilities, equipment, and personnel; this encourages ethically responsible behavior, sportsmanship, and cooperation. IM-Rec Sports educates participants in the worthy use of leisure time through development of lifetime sports skills and self-awareness in a

recreational context, while also offering meaningful opportunities for personal development and the acquisition of leadership, management, and technical skills. In addition, IM-Rec Sports programs and facilities provide the opportunity for interaction among undergraduate students, graduate students, and faculty/staff. The University operates four venues -- the Aquatic and Fitness Center (AFC), Slaughter Recreation Center (SRC), Memorial Gym, and North Grounds Recreation Center (NGRC), which total over 300,000 square feet -- and over 30 acres of sports fields and courts for students and employee members. These locations offer a variety of equipment, multipurpose space, services, and classes. IM-Rec Sports membership sales have been relatively flat the past two years, with slight increases expected in 2013-14. The expansion of the NGRC is expected to reduce the use burden on the AFC, as well as create new demand for lap swimming, aquatic programming, drop-in fitness, fitness programming, and squash. Strategic Direction Athletics Athletics’ focus is on excellence -- in both academics and on the field or court of play -- in a fiscally responsible way. Athletics’ specific ten year goals (established in 2002) include: • Graduate 100 percent of its student athletes;

• Win 12 national championships and 70

conference championships;

• Fully endow all of its scholarships and provide operational support required to meet other stated goals;

• Build and maintain the highest quality facilities

in the country, with the purpose of attracting and developing the best student athletes to the University annually;

• Attract top prospective student athletes to the

University annually; and

• Fully comply with Title IX. IM-Rec Sports The overall strategic plan of IM-Rec Sports focuses on critical and secondary functions such as creating

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student and faculty interaction outside the classroom; offering positive, alternative solutions to underage drinking and substance abuse concerns; providing leadership opportunities for student staff that teach personnel management, risk management, customer service, business operations, safety considerations, event management, and staff development; and preparing students for career opportunities. Opportunities for collaboration with other University departments, individuals, and initiatives enable both IM-Rec Sports employees and customers to realize IM-Rec Sports does more than just play -- it provides an important community building, quality of life, and experiential educational component to the University life for students, faculty/staff, and dependents. Most importantly, IM-Rec Sports provides positive outlets to learn how to use leisure time wisely; how to stay active, healthy, well, and fit for life; and how to develop self-directed skills to maintain wellness habits and choices after graduation. IM-Rec Sports is collaborating with the newly established Contemplative Sciences Center. The Center, underwritten by a $12 million gift from Sonia and Paul Jones of Greenwich, Connecticut, aims to blend the work of academics from a range of fields including medicine, education, business, and religious studies. The Contemplative Sciences Center will focus on teaching, research, social engagement, and practice as they relate to all facets of the contemplative sciences. IM-Rec Sports will provide core academic support along with hands-on opportunities for practicing contemplative sciences through a variety of mind/body programs. The McArthur Squash Center at the Boar’s Head Sports Club, a ground lease property, opened for play in April 2013. This 33,000-square-foot venue will significantly expand the squash services and programs at the University, providing a new home for the sport, which is currently played at the club level. At no additional cost to U.Va. students and IM-Rec Sports members, the McArthur Squash Center will be available for informal use as well as departmental tournaments, clinics, and classes. As a collaborative venue, members of the Boar’s Head Sports Club and guests of the Boar’s Head Inn will also utilize the courts per Boar’s Head Sports Club operational policies. Budgetary impact on IM-Rec Sports is limited, with other University funding balancing the operating costs for the facility. Overall strategic goals for IM-Rec Sports include the following:

Operate a financially successful business model while delivering excellent customer service by all departmental employees based on the core values of teamwork, accountability and uncommon integrity, and quality focus.

Continue implementation of the findings of the facilities planning effort completed in February 2010.

In continual collaboration with UHR, University

executives, deans, department heads, and supervisors, create a culture of wellness and fitness on Grounds for University employees and students to maximize utilization of existing fitness, wellness, competitive sports, and recreation venues.

2013-14 Operating Budget Athletics and IM-Rec Sports primarily operate as a self-supporting auxiliary, with a small portion of IM-Rec Sports funded through a traditional centralized budget target. In 2012-13, the University began transitioning IM-Rec Sports to a fully self-supporting basis. Units classified as auxiliary units (an entity that exists to furnish goods or services to students, faculty, or staff and charges a fee to recover the cost of the service) are expected to be fully self-supporting for both operating and capital purposes. An auxiliary unit, Athletics and IM-Rec Sports will retain revenues generated (student fees, conference revenue, gate receipts, and corporate sponsorships) and will be held responsible for generating sufficient revenues to cover planned expenditures. In addition, the unit is required to pay a general and administrative overhead to the University for support services; for 2013-14, that amount will be $2.9 million for Athletics and IM-Rec Sports. For 2013-14, 63 percent of the Athletics and IM-Rec Sports operating budget is from auxiliary sales and services. Private funds (endowment distributions, gifts, and transfers from the Virginia Athletics Foundation) represent 36 percent of funding.

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The 2013-14 operating budget for Athletics and IM-Rec Sports (see the following page) is $91.5 million, with 39 percent related to compensation, 17 percent related to athletic grants-in-aid (fully funded by Virginia Athletics Foundation gifts), 11 percent related to debt service on facilities, and 6 percent related to transfers to reserves (described in detail below). Approximately 27 percent of the budget falls into the OTPS category, which includes O&M of facilities, equipment, uniforms, and other supporting expenses. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan Construction is ongoing for the expansion and renovation of the NGRC ($17.2 million from debt and student fees), expected to be completed in November 2013. The Indoor Practice Facility ($13 million in gifts) was completed in spring 2013, impacting increased operational costs. Two projects on the Capital Plan for the long term represent the next phases in the IM-Rec Sports’ Program Planning and Project Formulation Study, with a renovation of Memorial Gym and a renovation and expansion of the SRC. At this time, Athletics does not have any projects on the capital plan. The Director of Athletics anticipates the possible need to update its Capital Plan; however any update to the plan for new projects will be dependent on fundraising progress. The below schedules outline the expected activity in the Repair & Renewal (R&R) and Expansion reserves for both Athletics and IM-Rec Sports. IM-Rec Sports will meet the Board reserve policy of re-investing at least 1.5 percent of replacement value of the facilities. In addition to the transfers to reserves, Athletics also relies on the stadium endowment to meet the Board’s reserve policy. The Athletics quasi-endowment principal balances are included as R&R

reserves.

Athletics (in thousands) R&R Reserve

Expansion Reserve Total

Projected Balance, 7/1/13 $54,016 $- 54,016 Plus: Transfers from Operating

2,430 - 2,430

Less: Planned Expenditures

(2,069) - (2,069)

Projected Balance, 6/30/14

$54,377 $- $54,377

In addition to the above balances, Athletics holds several true endowments valued at $8.4 million as of March 2013. Athletics plans the following expenditures from its reserves in 2013-14: $1.7 million for financing the John Paul Jones (JPJ) Arena and $0.4 million for the final year payments for financing of the stadium waterproofing project. Depending on the results of a study, Athletics may require financing of up to $3.0 million to address JPJ Arena water intrusion. This financing cost is not reflected above.

IM-Rec Sports (in thousands)

R&R Reserve



$2,034 $1,613 $3,647

Plus: Transfers from Operating

1,182 2,093 3,275

Less: Planned Expenditures

(840) (1,622) (2,462)


$2,376 $2,084 $4,460

IM-Rec Sports plans for the following expenditures from the reserves in 2013-14: $1.6 million for debt service, $1.8 million for the remainder of the $3.3 million HVAC project at the AFC, and $840,000 for various facility and pool repairs and equipment replacement.

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University of Virginia - MBU SummaryExec Level: R0825 VP: AT-Athletics Department, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals

7.4 494,223 ‐ ‐ ‐ ‐ 7.0 706,797 ‐ ‐ 71.0 7,760,480 85.4 8,961,500

10.5 670,134 ‐ ‐ ‐ ‐ 9.0 486,109 ‐ ‐ 175.0 14,462,056 194.5 15,618,299

‐ 72,568 ‐ ‐ ‐ ‐ 0.0 2,396,650 ‐ ‐ ‐ 6,527,258 0.0 8,996,476

17.9 1,236,925 16.0 3,589,556 246.0 28,749,794 279.9 33,576,275

‐ 8,146 ‐ ‐ ‐ 169,003 0.0 1,145,675 ‐ ‐ ‐ 21,603,000 0.0 22,925,824

‐ ‐ ‐ ‐ ‐ ‐ ‐ 14,639,371 ‐ ‐ ‐ ‐ ‐ 14,639,371

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐152,947 ‐ ‐152,947

‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,592,361 ‐ ‐ ‐ 2,126,033 ‐ 10,718,394

‐ ‐ ‐ ‐ ‐ 95,505 ‐ 4,834,749 ‐ ‐ ‐ 4,236,813 ‐ 9,167,067

8,146 264,508 0.0 29,212,156 27,812,899 0.0 57,297,709

17.9 1,245,071 264,508 16.0 32,801,712 246.0 56,562,693 279.9 90,873,984

8.0 473,425 ‐ ‐ ‐ ‐ 6.0 640,023 ‐ ‐ 63.8 7,470,720 77.8 8,584,168

10.5 644,883 ‐ ‐ ‐ ‐ 13.0 1,809,209 ‐ ‐ 173.0 15,985,916 196.5 18,440,008

0.0 31,800 ‐ ‐ ‐ ‐ ‐ 1,855,848 ‐ ‐ 0.0 6,546,922 0.0 8,434,570

18.5 1,150,108 19.0 4,305,080 236.8 30,003,558 274.3 35,458,746

0.0 9,377 ‐ ‐ 0.0 169,003 ‐ 1,275,088 ‐ ‐ 0.0 22,896,238 0.0 24,349,706

‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,590,930 ‐ ‐ ‐ ‐ ‐ 15,590,930

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐152,947 ‐ ‐152,947

‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,069,609 ‐ ‐ ‐ 2,349,089 ‐ 10,418,698

‐ ‐ ‐ ‐ ‐ 100,011 ‐ 460,723 ‐ ‐ ‐ 5,277,638 ‐ 5,838,372

0.0 9,377 0.0 269,014 25,396,350 0.0 30,370,018 0.0 56,044,759

18.5 1,159,485 0.0 269,014 19.0 29,701,430 236.8 60,373,576 274.3 91,503,504

91

VICE PRESIDENT AND CHIEF INFORMATION OFFICER Overview of Operations The office of the Vice President and Chief Information Officer (CIO) oversees two complementary roles for information technology (IT) at the University. On the one hand, the daily activities of the University depend on having a robust and predictable IT infrastructure that is sized to capitalize on economies of scale. On the other hand, IT plays an important strategic role for the University. Accordingly, the activities that report to the CIO are organized around utility and strategic functions. On the utility side, the CIO provides central IT services including: network services, messaging services, storage, voice, data center services, administrative services, classroom support, video services, application development, help desk, and server management. On the strategic side, the CIO seeks to leverage technologies, networks, and business practices to provide competitive advantage as the University pursues its teaching, research, and service missions. Here, the focus is on IT architecture, emerging technologies, and support for computationally intense research and scholarship in close partnership with the faculty. Activities that fall within the strategic realm include the centers to support computationally intense research (UVACSE) and scholarship (SHANTI), the 4-VA partnership, work with the library on digital preservation strategies, online learning, and participation in a variety of multi-institution network and cloud partnerships. In 2011, the CIO completed a multi-year operational reorganization that consolidated central IT services to respond more flexibly and efficiently to the rapidly changing IT landscape. The reorganization of central IT to consolidate operations, strategy, architecture, administrative computing, high-performance computing, and security/policy under a single vice president allows the CIO to take an “all funds” approach to funding and managing central IT services. That approach has been effective. The majority of improvements that have been made over the last five years have been accomplished in the context of a steady budget and declining FTE. As a function of the reorganization, all central IT activities, goals, and metrics have been placed into four quadrants:

1. Operational efficiency; 2. IT architecture; 3. Security; and

4. Strategic investment. A brief description of key activities and metrics within each quadrant follows:

Operational Efficiency CIO must run its services efficiently and be judged by the metrics of predictability, cost and value. Define and validate costs

of services provided by ITS, benchmarking with other universities and other industries as appropriate

Continue to develop Service Level targets with customers and improve mechanisms to monitor and maintain service level targets

Increase commitment to project and portfolio management

Improve communication and transparency

Improve management of project and service costs (through project management and Cost of Services initiatives)

Focus on staff training and cross-training

Continue working with Internet2 on cloud-based technology strategies

Security CIO must learn to operate in a world where every device is potentially compromised and where people are accountable for the data that they use. Over the next four years,

double the institutional investment in enhanced IT security, records management, and compliance with particular emphasis on mobile technology, secure research DMZs, eDiscovery, intrusion detection, and data loss prevention

Continue to enhance network and application security

Continue campaign to remediate highly sensitive data and explore technologies that allow the institution to be more proactive in preventing data loss

Continue to monitor and respond appropriately to increased compliance requirements

Enterprise Architecture and Policy

In a world where users control their devices, CIO must pay increased attention to network access, identity and authorization, data management policies, and licensing/software provisioning requirements. Modernize the University’s

communication infrastructure

Refresh and enhance our identity management infrastructure

Continue to work with OGC and Procurement to deploy a set of policies, operating procedures, and training that will strike the appropriate balances between compliance and consumerization and between innovation and risk

Strategic Initiatives CIO must continue to invest in areas where technology gives U.Va. competitive advantage on the teaching and research fronts. Provide the infrastructure

to support on-line and technology-enhanced learning

Provide an environment supporting data-intensive discovery and digital scholarship, specifically in the areas of advanced networks, big data, and digital scholarship

Analytics - provide a robust central reporting and analysis environment

Continue to work with the Library to build a multi-institutional digital preservation archive

Continue to work with VPR to develop U.Va. data management plans that are responsive to emerging funding agency requirements

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Over the last three years, the CIO has placed an increasingly sharp focus on transparency, predictability, efficiency, and assessment. The goals are to make IT operations and costs visible to the community and to hold the organization to costs and service level agreements that resonate with the community, exceed peers, and compare favorably to industry best practices. In addition to organizational efficiency, central IT has been able to satisfy rapidly-growing demand with steady or declining funding through a combination of : 1) finding better and more efficient ways of providing services; 2) taking advantage of Moore’s Law, which provides roughly double the computer chip performance every 18 months for the same cost; and 3) moving aggressively to take advantage of “cloud” computing and the associated favorable economies of scale that characterize the networked world. The savings that we realize are then reinvested in the infrastructure. Over the next four years, central IT will continue to leverage efficiencies and favorable technology cost strategies to meet the “normal” growth in IT service demand. From a budget perspective, the CIO will accomplish this by internally recovering and reallocating a minimum of three percent of its budget annually. Strategic Direction The University’s current funding for IT has allowed it to meet normal growth in IT service demand. These are not, however, normal times. Information and communication technologies are changing fundamentally the ways people teach, learn, discover, publish, and collaborate. The very fabric of inquiry is being altered by data, computation, and emerging tools of digital expression. The University’s current resources are inadequate to meet the challenges it faces from this IT revolution and are small in comparison with its peers. A recent survey of doctoral institutions, for example, found that, on average, central IT accounted for 3 percent of the total institutional budget. For U.Va., central IT accounts for 2.4 percent of the total budget. Looking forward, central IT will need additional funds in four areas to remain competitive in the face of rapidly emerging IT needs and capabilities:

- Big Data, Computation, and Digital Scholarship - Enhanced IT Security, Records Management, and Compliance - Online and Technology Enhanced Learning - Analytics

2013-14 Operating Budget The VP/CIO and Information Technology Services (ITS) are funded in a hybrid model, with Communications Services operating as a self-supporting auxiliary. The remainder of the unit is funded through a traditional centralized budget target and a direct allocation of 2.27 percent of all generated F&A cost recoveries.

Units classified as auxiliary units (an entity that exists to furnish goods or services to students, faculty, or staff and charges a fee to recover the cost of the service) are expected to be fully self-supporting for both operating and capital purposes. An auxiliary unit, Communications Services will retain revenues generated (charges to Academic Division and Medical Center units and fee assessments to students) and will be held responsible for generating sufficient revenues to cover its planned expenditures. In addition, the unit is required to pay a general and administrative overhead to the University for support services; in 2013-14, that amount will be $282,000. For 2013-14, 61 percent of the CIO’s operating budget is from tuition and state general funds. Communication Services’ sales and services revenue (including student fees) will provide 34 percent, while distributions from the University’s F&A cost recoveries will provide another 4 percent. For regular session students, the 2013-14 fees are set at $24 for debt service related to the new data center and $20 for the University-wide Microsoft licensing agreement. For CIO/ITS, the 2013-14 operating budget (see page 95) is $47.8 million, with the primary spending initiatives being compensation (55 percent), Communication Services’ non-personal services expenditures, such as equipment and licensing (21 percent), and other non-personal services and strategic initiatives (14 percent). Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state.

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The 2013-14 budget includes $850,000 allocated from state general funds in support of U.Va.’s participation in the 4-VA program initiative with George Mason University, James Madison University, and Virginia Tech. This funding was also received in 2011-12 and 2012-13. In 2013-14, the VP/CIO will use student fee revenue to cover internal debt service of $480,000 for the students’ share of the new data center. Capital Plan In 2013-14, Communication Services plans to transfer $2.9 million from operations into its reserve. Using current estimates, the ten-year capital plan demonstrates that Communication Services can replace much of its most expensive system, its telephone infrastructure, for an estimated $10.5 million, which should be well in excess of the Board of Visitors policy requiring self-supporting units to demonstrate annual capital expenditures or contributions to capital reserves of at least 1.5 percent of replacement value of equipment. The telephone infrastructure replacement project is underway, and will continue in 2013-14. Full implementation is expected to take up to two years.

.

Communications Services (in thousands) R&R ReserveProjected Balance, 7/1/13 $3,209

Plus: Transfers from Operating 2,863Less: Planned Expenditures 4,048

Projected Balance, 6/30/14 $2,024MAJ

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University of Virginia - MBU SummaryExec Level: R1250 VP: IT-VP/CIO, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals

16.0 2,516,203 ‐ ‐ ‐ 40,035 ‐ ‐ ‐ ‐ ‐ 107,100 16.0 2,663,338

212.3 18,548,326 4.1 416,000 3.0 291,786 ‐ ‐ ‐ ‐ 46.5 2,791,891 265.9 22,048,003

‐ 364,417 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 91,225 ‐ 455,642

‐ 47,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 47,000

228.3 21,475,946 4.1 416,000 3.0 331,821 46.5 2,990,216 281.9 25,213,983

‐ 17,465,379 ‐ 1,700,000 ‐ 339,432 ‐ ‐ ‐ ‐ ‐ 11,020,763 ‐ 30,525,574

‐ 15,140 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,140

‐ ‐849,379 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐849,379

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 480,823 ‐ 480,823

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,230,831 ‐ 1,230,831

16,631,140 1,700,000 339,432 12,732,417 31,402,989

228.3 38,107,086 4.1 2,116,000 3.0 671,253 46.5 15,722,633 281.9 56,616,972

16.0 2,474,425 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 108,323 16.0 2,582,748

212.3 19,891,086 4.1 425,144 3.5 280,878 ‐ ‐ ‐ ‐ 46.5 2,854,322 266.4 23,451,430

0.0 206,352 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 91,225 0.0 297,577

228.3 22,571,863 4.1 425,144 3.5 280,878 46.5 3,053,870 282.4 26,331,755

0.0 7,569,698 ‐ 1,705,000 0.0 60,260 ‐ ‐ ‐ ‐ 0.0 9,825,025 0.0 19,159,983

0.0 31,021 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 31,021

0.0 ‐1,097,450 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐1,097,450

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 480,000 ‐ 480,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,863,267 ‐ 2,863,267

0.0 6,503,269 1,705,000 0.0 60,260 0.0 13,168,292 0.0 21,436,821

228.3 29,075,132 4.1 2,130,144 3.5 341,138 46.5 16,222,162 282.4 47,768,576

95

VICE PRESIDENT AND CHIEF OFFICER FOR DIVERSITY AND EQUITY Overview of Operations The Office for Diversity and Equity (ODE) provides leadership, information, consultation, coordination, and assistance to the various units and constituencies within the University in an effort to embrace diversity and equity as pillars of excellence, synergize actions at all levels of the institution, and cultivate inclusiveness and mutual respect throughout the community. ODE also reaches beyond the University to establish beneficial relationships with individual and institutional partners who share mutual goals and interests. The University is committed to a diverse and inclusive environment in which differences are welcomed and valued. Collaboration with student groups, alumni, faculty, individuals, and organizations from the local community helps to enrich the appreciation for diversity within the community. Together, an institutional infrastructure can be built that will sustain what has been set in motion and take the University to the next level. ODE’s vision is to maximize and leverage diversity, equity, and inclusion to create welcoming, engaging, and productive learning environments for faculty, staff, students, and community. Strategic Direction ODE’s mission is to promote an inclusive, welcoming, and respectful environment by embracing diversity as a core value tied inextricably to the University’s priorities as addressed in the Commission on the Future of the University reports. In 2013-14, the ODE will strive to: Encourage commitment to diversity and equity in

all aspects of academics, extracurricular activities, the workplace, and within the surrounding communities;

Enhance the student experience academically and

culturally; Enhance staff relations in collaboration with the

Vice President and Chief Human Resources Officer; and

Enhance faculty relations in collaboration with the

Vice Provost for Faculty Recruitment and Retention.

The UVA IDEA (inclusion, diversity, equity, access) Fund trustees will enhance and support the Office for Diversity and Equity initiatives.

2013-14 Operating Budget The ODE is funded through a traditional centralized budget target and self-generated grants, contracts and F&A. For 2013-14, 77 percent of ODE’s operating budget is funded by the University’s unrestricted endowment fund, with the remaining 23 percent from the National Science Foundation’s Louis Stokes Alliances for Minority Participation grant, a five-year, $3.5 million mid-level alliance grant awarded (1 of 9 institutions) starting September 15, 2013.

For the ODE, the 2013-14 operating budget (see the following page) is $1.0 million, with the primary spending initiatives being compensation (73 percent), non-personal services, and strategic initiatives. OTPS expenditures include providing support for a wide range of student, faculty, and community activities. These engagements are manifestations of efforts to increase communication and interaction across lines of race, ethnicity, gender, religion, class, sexual orientation, and physical condition. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan The ODE does not have any projects on the Major Capital Projects Plan.

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University of Virginia - MBU SummaryExec Level: R0061 VP: DE-VP/Diversity and Equity, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Subtotal

MBU Totals


Subtotal

OTPS

Subtotal

MBU Totals

‐ ‐ ‐ ‐ 2.0 475,880 ‐ ‐ ‐ ‐ ‐ ‐ 2.0 475,880

‐ ‐ 0.1 4,967 3.0 193,733 ‐ ‐ ‐ ‐ ‐ ‐ 3.1 198,700

‐ ‐ ‐ 1,356 ‐ 24,300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 25,656

‐ ‐ ‐ 4,115 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,115

0.1 10,438 5.0 693,913 5.1 704,351

‐ ‐ ‐ 99,717 ‐ 129,486 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 229,203

99,717 129,486 229,203

0.1 110,155 5.0 823,399 5.1 933,554

‐ ‐ ‐ ‐ 1.0 388,120 ‐ ‐ ‐ ‐ ‐ ‐ 1.0 388,120

‐ ‐ 1.3 61,155 4.0 299,294 ‐ ‐ ‐ ‐ ‐ ‐ 5.3 360,449

‐ ‐ ‐ ‐ 0.0 10,104 ‐ ‐ ‐ ‐ ‐ ‐ 0.0 10,104

1.3 61,155 5.0 697,518 6.3 758,673

‐ ‐ ‐ 176,845 0.0 109,982 ‐ ‐ ‐ ‐ ‐ ‐ 0.0 286,827

176,845 0.0 109,982 0.0 286,827

1.3 238,000 5.0 807,500 6.3 1,045,500

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VICE PRESIDENT FOR RESEARCH Overview of Operations The Office of the Vice President for Research (VPR) supports five main ongoing strategic functions: 1) research enhancement; 2) graduate studies and postdoctoral programs; 3) research compliance; 4) U.Va. innovation, strategic partnerships, and technology commercialization; and 5) research fundraising and development. The role of the VPR is to enhance academic excellence by creating and nurturing cross-school, multi-disciplinary research opportunities that differentiate the University and by providing service to school and non-school units. The VPR’s strategic and service missions are inextricably linked and provide a unique University landscape view to explore, seed, and realize distinctive collaborative opportunities. Offices that report to the VPR include Environmental Health and Safety (EHS), the Center for Comparative Medicine (CCM), and the Virginia Quarterly Review (VQR). Strategic Direction The Office currently supports or is exploring six pan-University initiatives. Fiscal year 2013-14 goals for these initiatives outlined below will advance the President’s priorities of faculty retention and recruitment, curriculum enhancement, and research to bring distinction to U.Va through collaborations and the resulting impact on the world: Sustainability 1. Continue to develop the Global Water Games

template and re-program the U.Va. Bay Game for wide distribution.

2. Submit large U.S. Department of Education proposals for curriculum development and learning assessment with the goal of mainstreaming games developed for K-12 education.

3. Establish the pre-eminent center for coastal change science and adaptation by expanding the U.Va. Coastal Reserve LTER at Oyster, VA.

Quantitative Systems Biosciences 1. Promote potentially-distinguishing areas identified

jointly with deans, unit leadership, and faculty. Current areas of focus include micro biome and neuroscience.

2. Seed fund two to three initiatives under each of the above-mentioned areas of focus.

Energy Systems Prototyping, Research, Innovation and Translation, or ESPRIT 1. Establish external support for a major research

and innovation demonstration project enabling dramatic increases in energy system efficiencies and resilience across a major segment of U.Va. Grounds, in the Charlottesville-Albemarle community, and/or in economically-distressed regions of Virginia.

2. Acquire follow-on funding to continue to meet or exceed a 30/1 return on investment on ESPRIT seed funding.

3. Expand partnerships and faculty and student involvement across Grounds (e.g., Darden, Batten, and the Law School) and with industry.

U.Va. – Latin America Initiative In collaboration with the Executive Vice President and Provost and the Vice Provost for Global Affairs: 1. Establish external support for research and

innovation between U.Va. and Brazil in key areas such as health, commerce, energy systems, sustainability, big data, and cyber security.

2. Increase U.Va.’s visibility in Latin America through projects involving World Cup 2014.

3. Attract high-quality, fully-funded Brazilian postdoctoral and graduate students to U.Va. based upon Brazil’s Science Without Borders (SWB) initiative.

4. Develop opportunities for expansion in other Latin America nations beyond Brazil to distinguish U.Va. through Pan-American interdisciplinary research partnerships in science, technology, and innovation.

OpenGrounds 1. Expand program offerings by attracting new

externally-funded partnerships. 2. Expand network of places across Grounds and

beyond with visible “hotspots” (i.e., tables facilitating both physical and virtual collaborative activity).

3. Pilot models for enhancing boundary-crossing student research with the launch of the externally-funded new scholars program in fall 2013.

4. Continue to engage in discussions with fellows and other supporters to build a sustainable funding model for the growth of future activities.

5. Expand the core studio in the Corner building to multiple bays.

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Big Data 1. Having completed the initial planning stage for a

computational modeling and data mining institute that addresses “Big Data” involving the Library, McIntire, Darden, SEAS, CLAS, SOM, Curry, Architecture, ITS, and the offices of the VPR and Provost, implement a seminar series or symposium addressing big data issues and a big data summit.

2. Institute a RFA to stimulate new cross-Grounds collaborations to bring domains together with analytics and modeling, with the plan to fund a minimum of four collaborations.

3. Hold low-cost workshops to identify needs in analytics, data handling, computation, and visualization.

Primary goals of U.Va. Innovation for 2013-14 include: 1. Enhance customer service by implementing the

“University Engagement Framework”; providing educational opportunities for U.Va. faculty, staff and students; simplifying the invention disclosure process; and establishing event-based and open feedback channels for stakeholders.

2. Improve target pursue rates by increasing the number of strategic technology investments and investing on select technologies over the long-term; providing high-quality support for U.Va. translational research and related initiatives within and outside U.Va. Innovation; and implementing consistent diligence and invention processing timelines.

3. Strengthen business development and strategic partnerships by enhancing support of existing and potential innovation partnerships and developing technology specialization of licensing professionals.

4. Increase licensing and new venture volume leading to enhanced revenue generation.

5. Build U.Va.’s reputation and brand as a world center of innovation helping to drive the 21st century economy through its innovation and human assets.

Primary goals of the Office of Graduate Studies and Postdoctoral Programs for 2013-14 include: 1. Enhance opportunities for interdisciplinary and

problem-based research through the recently-announced Collaborative Research Connection program.

2. Increase support for graduate students with major life events.

3. Increase the number of externally-funded fellowship opportunities for graduate students.

4. Lead in the effort to develop an electronic system for tracking the career outcomes of graduate

student alumni in collaboration with the Graduate School of Arts and Sciences.

5. Enhance support for postdoctoral researchers and scholars through the creation of a University-wide postdoc environment to facilitate programming.

6. Enhance diversity in graduate programs. Primary goals of EHS and the research Compliance operation for 2013-14 include: 1. Significantly expand the University’s laboratory

safety program beyond those highly-regulated areas by emphasizing the better management of chemicals to ensure safe labs and compliance with the state’s fire codes; creating a group of laboratory safety consultants who will assist laboratories with reviewing their programs to make procedures safer and assist in the development of training specific to the equipment and procedures of each research group; implementing a more rigorous laboratory inspection program to meet the expectations of the State Fire Marshal; and more efficiently identifying new faculty, new programs, and new specialized equipment early in the planning stages of renovations, installations, etc. to ensure safe, efficient, and timely operations.

2. Develop software databases and procedures to bring the capabilities of the Institutional Review Boards to the same level of support as that of the Biosafety and Animal Care and Use Committees.

CCM’s goals for 2013-14 include: 1. Ensuring that veterinary care and animal husbandry

are performed and documented in compliance with federal and Commonwealth regulations to maintain the accreditation of the University’s animal use program by the Association for the Assessment and Accreditation of Laboratory Animal Care, Intl (AAALAC), and the Animal Welfare Act (CFR 9).

2. Remain cognizant of the needs of the biomedical research community in advance of changes in requirements for research animal models.

3. Facilitate the generation of highly reproducible data from biomedical research through the provision and validation of disease-free animals.

Primary goals of VQR for 2013-14 include: 1. Maintain commitment to produce editorially-

excellent, visually-engaging print content. To achieve this goal, a targeted direct mail campaign to attract new subscribers and to retain existing ones will be implemented together with redesigning VQR pages to increase readability while continuing VQR’s commitment to long-form journalism.

2. Continue award-winning editorial strategy by focusing VQR’s content in five areas: (1) literature, (2) long-form journalism, (3) photojournalism, (4)

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commentary, and (5) multimedia. The current balance resulting from VQR’s increased publication of short fiction in 2012-13 will be maintained to continue garnering top editorial honors at every level of publishing, including at the national level.

3. Engage the national audience and university community through public events to create conversations around VQR's content and to advance the goal of intellectual inquiry for societal benefit.

4. Promote the recently-created VQR digital edition which can be read on the Kindle Fire, iPad, and other tablets to maximize VQR’s reach and impact through a marketing and promotion plan currently under development.

5. Develop online-only multi-media content in partnership with media organizations with larger online readership and expand VQR’s mission to include content delivery into the classroom and the training and support of the rising generation of writers and photographers.

6. Expand VQR’s wide online reach while simultaneously deepening reader engagement by re-structuring VQR’s website.

7. Implement the recently-established new fundraising program.

Primary goals of Research Fundraising and Development for 2013-14 include: 1. Continue to develop new and increased revenue

streams to support all pan-University initiatives outlined above. This goal will be accomplished by proactively partnering with the President, Provost, University Advancement, and school-based and external partners by identifying new corporate, foundation, and individual prospects and deepening relationships for VPR key program leaders with alumni, parents, friends, and other partners through direct contacts, events, and printed and electronic communications.

2. Launch new crowd funding website to garner philanthropic support for proof-of-concept research. Assess the website for effectiveness and possible expansion into other development areas.

2013-14 Operating Budget The Office of the VPR has a hybrid budget model; it is funded through a traditional centralized budget target, a direct allocation of 10.9 percent of all generated F&A cost recoveries, private funds (endowment distributions and gifts), and assessments and recoveries for services (including assessment of animal husbandry per diem rates and recoveries of research compliance expenditures).

For 2013-14, 65 percent of the VPR’s operating budget (net of $10.6 million in recoveries from schools for animal husbandry, veterinary care services, and research compliance) is from distributed F&A cost recoveries, while 25 percent is from tuition, state general funds, and state restricted funds. Private funds (endowment distributions and gifts) represent 11 percent of funding.

For the Office of the VPR, the 2013-14 operating budget (see the following page), net of recoveries, is $17.4 million. Compensation is the primary expenditure category (53 percent of gross expenditure budget). Other than personal services expenditures include support of strategic and operational initiatives outlined earlier in the summary. Additionally, debt service and O&M (a total of $1.6 million in 2013-14) will be paid for the Carter-Harrison Medical Research Building and the Sheridan G. Snyder Translational Research Building. Expenses of $10.6 million related to animal husbandry, veterinary care services, and research compliance are reimbursed by schools, so the corresponding expenses appear in those units’ budgets. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan The VPR does not have any projects on the Major Capital Projects Plan.

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University of Virginia - MBU SummaryExec Level: R1350 VP: RS-VP/Res&Public Svc, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries


Subtotal

MBU Totals

9.4 1,796,993 12.9 1,567,111 1.0 127,469 0.3 64,071 0.8 220,769 ‐ ‐ 24.4 3,776,413

23.1 2,124,627 52.4 4,345,206 1.9 276,133 0.1 3,143 62.4 2,767,571 ‐ ‐ 139.8 9,516,680

0.0 234,626 0.0 364,829 ‐ 15,813 0.0 500,160 ‐ 96,920 ‐ ‐ 0.0 1,212,348

‐ ‐ 1.9 117,939 ‐ ‐ 0.0 3,788 ‐ ‐ ‐ ‐ 1.9 121,727

32.5 4,156,246 67.1 6,395,085 2.9 419,415 0.4 571,162 63.2 3,085,260 166.1 14,627,168

0.0 1,600,533 0.0 4,552,217 ‐ 464,382 0.0 615,721 ‐ 3,798,932 ‐ ‐ 0.0 11,031,785

‐ 691,647 0.0 297,139 ‐ ‐ 0.0 210,000 ‐ ‐ ‐ ‐ 0.0 1,198,786

‐ ‐100,000 0.0 ‐2,384,415 ‐ ‐ ‐ ‐ ‐ ‐6,879,192 ‐ ‐ 0.0 ‐9,363,607

‐ ‐ 0.0 1,563,400 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,563,400

‐ ‐ ‐ 0 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0

0.0 2,192,180 0.0 4,028,341 464,382 0.0 825,721 ‐3,080,260 0.0 4,430,364

32.5 6,348,426 67.1 10,423,426 2.9 883,797 0.4 1,396,883 63.2 5,000 166.1 19,057,532

5.3 1,041,099 19.1 2,222,969 1.0 124,639 0.2 42,779 0.7 324,036 ‐ ‐ 26.3 3,755,522

23.5 2,048,069 55.9 4,672,519 3.0 361,077 0.6 30,759 59.7 2,804,198 ‐ ‐ 142.7 9,916,622

0.0 26,500 0.0 334,428 0.0 8,250 ‐ 505,000 0.0 109,540 ‐ ‐ 0.0 983,718

‐ ‐ 1.9 115,000 ‐ ‐ 0.2 15,000 ‐ ‐ ‐ ‐ 2.0 130,000

28.8 3,115,668 76.9 7,344,916 4.0 493,966 0.9 593,538 60.4 3,237,774 171.0 14,785,862

0.0 702,994 0.0 5,085,695 0.0 128,754 0.0 531,821 0.0 4,096,500 ‐ ‐ 0.0 10,545,764

0.0 625,781 ‐ 225,400 ‐ ‐ 0.0 220,000 ‐ ‐ ‐ ‐ 0.0 1,071,181

0.0 ‐90,000 ‐ ‐3,000,000 ‐ ‐ ‐ ‐ 0.0 ‐7,489,440 ‐ ‐ 0.0 ‐10,579,440

‐ ‐ 0.0 1,572,672 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,572,672

0.0 1,238,775 0.0 3,883,767 0.0 128,754 0.0 751,821 0.0 ‐3,392,940 0.0 2,610,177

28.8 4,354,443 76.9 11,228,683 4.0 622,720 0.9 1,345,359 60.4 ‐155,166 171.0 17,396,039

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VICE PRESIDENT AND CHIEF STUDENT AFFAIRS OFFICER Overview of Operations The Division of Student Affairs supports the University’s primary goal of developing citizen leaders by promoting the intellectual, cultural, personal, and social growth of students while encouraging their physical and psychological well-being. In practice, the Division: 1) seeks to ensure all students are safe and well so that they can focus on academics; 2) promotes ways for students to apply what they learn in the classroom outside the classroom, which is exemplified by how they govern themselves and hold themselves responsible and accountable (student self-governance); and 3) provides structures and programs that support development of skills and knowledge, including those that align with career interests and that help the students forge institutional and community connections. All Student Affairs programs and services are defined by the core values that define the student experience– self-governance, academic rigor, honor, public service, health and wellness, and multiculturalism and diversity. The Office of the Vice President and Chief Student Affairs Officer (VP&CSAO) ensures that all of the units of the Division render their programs and services in the most effective and efficient manner in support of the Student Experience and the University’s overall mission. Offices reporting to the VP&CSAO include the VP Office, Dean of Students and its units (i.e., Orientation and New Student Programs, Residence Life, Newcomb Hall, Fraternity and Sorority Life), African-American Affairs, Student Health, and University Career Services. Strategic Direction The Division’s annual strategies (submitted as the VP&CSAO annual goals) relate to the Division’s five core functions: student behavior, student climate, student involvement, health and wellness, and residence life. The VP&CSAO works closely with the major unit heads in Student Affairs to ensure planning is consonant with the Division’s core functions and with the President’s strategic priorities; in particular those that focus on: the unique benefits of a residential experience; the distinctiveness and strength of the U.Va. student experience, including effective integration of students’ academic pursuits with career exploration and post-graduation decisions; and the benefits of collaboration across the University. Student Affairs’ Divisional 2013-14 strategies will focus broadly on: 1) The Pan-University Experience: Student Affairs

plays a key role in connecting the student experience across schools. Opportunities around

leadership development (partnering with schools to create a distinctive, comprehensive university leadership program) and public service (building stronger connections between curricular and co-curricular public service activities) will be targeted to maintain U.Va.’s institutional character and ensure the continued strength and distinctiveness of the U.Va. residential experience.

2) Advising, Mentoring, and Career Services: The Division will seek to mirror its success in exceptionally strong student involvement outside of the classroom with equally robust programs in advising, mentoring, and career services. Student Affairs will explore opportunities to interrelate these programs in order to introduce advising early on in a student’s career (perhaps as early as orientation) and to strengthen the system that supports students throughout their tenure at the University.

3) Leveraging Technology to Strengthen Relationships: In an age of unprecedented technological growth which has changed the way students learn, collaborate, and communicate, Student Affairs will explore ways to integrate technology with the value of residential experience. How, for example, can the University leverage social media and other technologies to facilitate faculty-student connections and engage students more effectively? How can Student Affairs adapt its student experience delivery model to account for the increasing amount of time students spend in front of computers and mobile devices? The Division will seek to use technology to enhance the key elements of U.Va’s institutional identity as a top-tier research University with an uncommon focus on the undergraduate student experience.

4) Aligning Policies and Procedures with Aspirations: Centralizing administrative services to improve coordination, reduce bureaucracy, increase flexibility, and maximize available resources is essential to eliminating barriers that hinder Student Affairs’ ability to help students develop into citizen leaders. For example, current policies present challenges for the ways in which students are able to use space, particularly for their co-curricular activities. The Division will focus on using existing resources

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more effectively and on simplifying policies and procedures essential to sustaining the pan-university student experience.

2013-14 Operating Budget The VP&CSAO areas are funded on a hybrid model. Student Health, Newcomb Hall, and Student Programming operate as self-supporting auxiliaries, while New Student Orientation functions as a self-supporting, non-auxiliary activity. The remaining units are funded through a traditional centralized budget target and self-generated grants and contracts and private resources. Units classified as auxiliary units (an entity that exists to furnish goods or services to students, faculty, or staff and charges a fee to recover the cost of the service) are expected to be fully self-supporting for both operating and capital purposes. As auxiliary units, Student Health, Newcomb Hall, and Student Programming retain revenues generated (primarily fee assessments to students) and are held responsible for generating sufficient revenues to cover their planned expenditures. In addition, the units are required to pay a general and administrative overhead to the University for support services; for 2013-14, that amount will total $0.9 million. As a self-supporting activity, New Student Orientation retains the revenues generated through student payments and is held responsible for meeting direct expenditures (including salary increases). However, the unit does not pay a general and administrative assessment. As shown on the pie chart, 59 percent of the VP&CSAO’s 2013-14 operating budget comes from student fees paid to the auxiliary activities. For regular session students, the 2013-14 fees are set at $401 for Student Health, $208 for Newcomb Hall, and $27 for Student Programming. Approximately 21 percent of the operating budget is from tuition and state general funds (including new student orientation revenues), while 13 percent is provided from endowment distributions and gifts. Approximately 6 percent of the budget is related to activity fees assessed to students and managed by students for student-initiated programs (including the student activity fee managed by Student Council and the programming fees levied by each residential college).

For the VP&CSAO, the 2013-14 operating budget (see page 105) is $27.6 million, primarily related to compensation (58 percent of budget). OTPS expenditures include support for the strategic and operational initiatives outlined earlier in the summary. Additionally, debt service of $1.2 million annually will be paid for the Newcomb Hall Renewal and Renovation project underway. The University proposes to allocate $26,600 to Residence Life in support of net increases in housing and dining rates for residence staff; $23,600 for additional residence staff and restructured pay plan; $15,000 to support programs and staff in the Office of African American Affairs; and $100,000 to support new faculty hires in the residential colleges. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan The VP&CSAO does not have any projects on the Major Capital Projects Plan. The charts on the following page demonstrate the Repair & Renewal (R&R) activities for Newcomb Hall and Student Health. The Newcomb Hall Reserve planned expenditures includes $1.2 million in annual debt service for the Newcomb Hall Expansion and $1.5 million in debt service for the Central Grounds/Alderman Clemons Library Chiller. Both units are in compliance with the Board reserve requirement for reinvesting in facilities at 1.5 percent annually:

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Newcomb Hall (in thousands) R&R ReserveProjected Balance, 7/1/13 $2,613

Plus: Transfers from Operating 1,462Less: Planned Expenditures 2,739

Projected Balance, 6/30/14 $1,336

Student Health (in thousands) R&R ReserveProjected Balance, 7/1/13 $1,309

Plus: Transfers from Operating 125Less: Planned Expenditures 108

Projected Balance, 6/30/14 $1,326

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University of Virginia - MBU SummaryExec Level: R1140 VP: SA-VP/Student Affairs, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries


Transfers

Subtotal

MBU Totals

17.2 2,061,973 0.0 500 5.9 496,948 3.7 425,385 ‐ ‐ 31.9 3,873,185 58.6 6,857,991

30.0 1,746,103 1.0 45,000 11.5 674,162 3.0 218,758 6.0 325,413 66.0 4,101,682 117.4 7,111,118

‐ 250,319 ‐ 25,928 ‐ 45,132 ‐ 38,559 ‐ ‐ ‐ 1,138,875 ‐ 1,498,813

‐ ‐ ‐ ‐ ‐ ‐ 0.3 13,501 ‐ ‐ ‐ ‐ 0.3 13,501

47.1 4,058,395 1.0 71,428 17.4 1,216,242 6.9 696,203 6.0 325,413 97.8 9,113,742 176.2 15,481,422

‐ 2,292,155 ‐ 241,075 ‐ 1,598,369 ‐ 358,865 ‐ 1,236,294 ‐ 4,515,905 ‐ 10,242,663

‐ ‐ ‐ ‐ ‐ 60,000 ‐ 4,000 ‐ ‐ ‐ ‐ ‐ 64,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐339,776 ‐ ‐339,776

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 21,000 ‐ 21,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,972,822 ‐ 2,972,822

2,292,155 241,075 1,658,369 362,865 1,236,294 7,169,951 12,960,709

47.1 6,350,549 1.0 312,503 17.4 2,874,611 6.9 1,059,068 6.0 1,561,707 97.8 16,283,693 176.2 28,442,131

17.2 2,139,258 0.0 500 4.1 440,903 3.6 357,576 ‐ ‐ 28.9 3,740,013 53.9 6,678,249

32.6 2,172,830 1.0 44,625 11.0 681,548 3.0 230,695 5.8 327,709 68.0 4,327,492 121.4 7,784,898

‐ 185,107 ‐ 36,003 ‐ 86,398 ‐ 43,240 0.0 33,630 ‐ 1,105,139 0.0 1,489,517

‐ ‐ ‐ ‐ ‐ ‐ 0.3 13,501 ‐ ‐ ‐ ‐ 0.3 13,501

49.8 4,497,194 1.0 81,128 15.1 1,208,849 6.8 645,012 5.8 361,339 96.9 9,172,644 175.5 15,966,166

0.0 1,301,941 ‐ 188,375 ‐ 1,441,627 ‐ 336,958 0.0 1,210,950 ‐ 4,431,964 0.0 8,911,814

‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,500 ‐ ‐ ‐ ‐ ‐ 6,500

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐319,701 ‐ ‐319,701

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ 1,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,996,622 ‐ 2,996,622

0.0 1,301,941 188,375 1,441,627 343,458 0.0 1,210,950 7,109,885 0.0 11,596,235

49.8 5,799,135 1.0 269,503 15.1 2,650,475 6.8 988,470 5.8 1,572,289 96.9 16,282,529 175.5 27,562,401

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EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER Overview of Operations The Office of the Executive Vice President and Chief Operating Officer (EVP-COO) is charged by the Board of Visitors and President with overseeing the non-academic support areas of the University, including operations of the Health System, and supporting special initiatives that have a University-wide impact. First and foremost, the job of the EVP-COO is to lead his team, with a bias towards action, to support the University mission in an efficient, effective, and professional manner. Essential to success are strong, meaningful, and collaborative partnerships between university leadership, community stakeholders, and the entire EVP-COO team, including the following areas: Medical Center, Management and Budget, Human Resources, Finance, Treasury, Compliance and Enterprise Risk Management, Police, Emergency Preparedness, and Audit. The EVP-COO also works closely with the University of Virginia Investment Management Company, the University of Virginia Foundation, and Regional Business Development. At the conclusion of the search for an Executive Vice President for Health Affairs, oversight of the Health System will be transferred to that individual. Strategic Direction The EVP-COO will work to ensure sustainable support for the desired growth and aspirations of the University and Health System by: Strengthening relationships with all constituent

groups important to advance the University’s mission, including the Board; elected officials, major agency heads, and industry and community leaders; the Provost, deans, faculty, and administrators; and alumni, students, and parents;

Working with Board of Visitors and President to provide information as needed and to finalize a four-year operational, capital, and financial forecast – Financing Academic Excellence;

Partnering with the Provost and others to foster

strong relationships between academic and administrative areas, including the continued multi-year financial planning with a focus on addressing the generational shift in faculty, identifying a source of funds to invest in strategic priorities of the institution, and

adopting a viable, long-range tuition strategy that will ensure a strong and sustainable academic environment;

Collaborating with Medical Center leadership in the implementation of the Health System Strategic Plan and the transition to a new organizational structure with a focus on achieving targeted improvement in health care quality and patient safety while sustaining solid financial performance in the face of many changes in the health care industry;

Protecting the strong financial condition of the University, including but not limited to: o recommending and implementing

adjustments to the AccessUVa program that most effectively balance an investment of University resources with preserving the premier financial aid program for undergraduates with demonstrated need;

o overseeing a phased implementation of a new internal financial model, supported by robust financial reporting; and

o providing innovative financial planning and balance sheet and liquidity management to generate new financial resources for the University;

Sponsoring a program of process improvement

that focuses on driving greater synergies, partnering, shared services, and efficiency across the Academic Division and Medical Center in order to re-direct operational savings to strategic priorities; and

Providing cost-effective and high-value financial and business services to customers, including students, parents, alumni, donors, University-related foundations, research sponsors, federal and state government funders, other external stakeholders, and internal customers.

2013-14 Operating Budget The EVP-COO and direct reporting areas are primarily funded through a traditional centralized budget target. Other fund sources support several areas within the EVP-COO, including Treasury Management (funded through sales and services of its internal bank and capital financing program); the Associate Vice President for Finance (funded through F&A support for work associated with grant and contract activity and F&A rate development); and

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Student Financial Services (receives private funding, largely in support of scholarships and fellowships). Excluding the vice presidential areas reporting directly to the EVP-COO, 61 percent of the 2013-14 operating budget is from tuition and state general funds, 16 percent from grants and contracts and F&A, 20 percent from private funds, and 1 percent from auxiliary activity.

For the EVP-COO and direct reporting units (excluding vice presidential areas reporting to the EVP-COO), the 2013-14 operating budget (see the following page) is $98.4 million, with the primary spending on student financial aid ($66.3 million) and compensation ($24.7 million). When consolidated with the vice presidential areas overseen by the EVP-COO, the area’s 2013-14 operating budget totals $323.5 million. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan The EVP-COO does not anticipate changes to the next update of the Major Capital Projects Plan.

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University of Virginia - MBU SummaryExec Level: R0205 VP: CO-Exec VP/COO, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Recoveries

Transfers

Subtotal

MBU Totals

17.0 2,542,083 ‐ ‐ ‐ ‐ ‐ ‐ 1.0 135,000 1.0 155,020 19.0 2,832,103

254.3 15,963,617 30.4 2,751,606 2.0 374,650 ‐ ‐ 5.0 547,000 4.0 329,651 295.6 19,966,524

‐ 451,073 0.0 1,187,361 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,638,434

271.3 18,956,773 30.4 3,938,967 2.0 374,650 6.0 682,000 5.0 484,671 314.6 24,437,061

‐ 7,343,833 0.0 663,115 ‐ 873,357 ‐ ‐ ‐ 3,031,637 ‐ 6,256,600 0.0 18,168,541

‐ 37,587,587 0.0 8,350,056 ‐ 11,527,920 ‐ 8,280,000 ‐ ‐ ‐ ‐ 0.0 65,745,563

‐ ‐2,988,485 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐6,472,271 ‐ ‐9,460,756

‐ 92,830 ‐ 4,526,966 ‐ ‐ ‐ ‐ ‐ ‐979,000 ‐ 313,606 ‐ 3,954,402

42,035,765 0.0 13,540,137 12,401,277 8,280,000 2,052,637 97,935 0.0 78,407,750

271.3 60,992,538 30.4 17,479,104 2.0 12,775,927 8,280,000 6.0 2,734,637 5.0 582,606 314.6 102,844,812

16.0 2,085,954 ‐ ‐ 0.0 0 ‐ ‐ 1.0 136,000 1.0 153,716 18.0 2,375,670

254.3 16,499,100 31.7 2,703,992 2.7 460,850 ‐ ‐ 4.0 484,000 4.0 331,008 296.6 20,478,950

0.0 336,950 0.0 1,487,667 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,824,617

270.2 18,922,004 31.7 4,191,659 2.7 460,850 5.0 620,000 5.0 484,724 314.6 24,679,237

0.0 4,859,182 0.0 806,827 0.0 280,062 ‐ ‐ 0.0 1,951,500 0.0 6,265,905 0.0 14,163,476

0.0 39,355,416 0.0 8,404,755 ‐ 10,058,700 ‐ 8,450,000 ‐ ‐ ‐ ‐ 0.0 66,268,871

0.0 ‐2,988,485 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐6,481,629 0.0 ‐9,470,114

‐ ‐ ‐ 2,603,888 ‐ ‐ ‐ ‐ ‐ ‐362,500 ‐ 500,000 ‐ 2,741,388

0.0 41,226,113 0.0 11,815,470 0.0 10,338,762 8,450,000 0.0 1,589,000 0.0 284,276 0.0 73,703,621

270.2 60,148,117 31.7 16,007,129 2.7 10,799,612 8,450,000 5.0 2,209,000 5.0 769,000 314.6 98,382,858

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VICE PRESIDENT AND CHIEF HUMAN RESOURCES OFFICER Overview of Operations University Human Resources (UHR) supports the mission of the University of Virginia by creating a work environment that attracts, develops, and retains an outstanding and diverse workforce. UHR is responsible for all human resource (HR) functions for the Academic Division of the University, including recruitment, compensation, employee relations, employee development, benefits administration, employee wellness, payroll, recruitment and placement of temporary and wage personnel, and compliance and immigration services. The Vice President and Chief Human Resources Officer (CHRO) also has oversight responsibility for human resources at the College at Wise and for health and retirement benefits for the University’s Medical Center, as well as non-academic aspects of the faculty personnel system. Strategic Direction UHR strives to make the University of Virginia a place people want to work—where careers can grow, employees are passionate about contributing to the mission of the University, and employees are equipped to meet the challenges of the workplace and beyond. To do this, UHR: 1. Provides integrated programs and services to

meet the needs of the University’s strategic priorities by creating a positive work environment and supporting employee development;

2. Enhances the systems and information necessary to meet the needs of employees, managers, schools, and units;

3. Fosters a culture of customer service, keeping the human in human resources;

4. Ensures that exceptional employees reflecting the diversity of our community are hired and retained; and

5. Helps ensure that the University meets its University, federal, and state compliance requirements and operates as an effective steward of University resources.

These priorities dovetail with the strategic direction President Sullivan has outlined in her goal to transform the University into a culture of leadership. Ideally, while UHR continues to provide the institutional-level functions laid out above, it is also positioned to carry out more strategic, long-term

priorities that influence the culture and contribute to the success of the University. UHR’s role should include developing initiatives that promote and achieve the behaviors, culture, and competencies needed to achieve organizational success. However, to do this work well requires a shift in focus from transaction processing to offering more value-added, consultative services. At this writing, UHR’s customers are firmly focused on how well transactions are processed. UHR will continue to invest in infrastructure and emphasize customer service through quality assurance, assessment of HR processes, and systems upgrades. Two critical issues that represent the most significant human resource-related financial challenges to the University are competitive staff compensation and the cost of fringe benefits. The University’s ability to maintain academic excellence is directly linked to its ability to attract and retain top quality faculty and staff. UHR closely monitor staff turnover to track the University’s competiveness in recruitment and retention.

An investment in staff compensation is critical to ensure support for new initiatives in research and teaching and reverse the trend in employee dissatisfaction with pay. The graph below shows the initial goal for staff is a salary average at the 50th percentile of the market range. With the implementation of the University Staff HR Plan, which allows for market and merit pay increases, the average market range penetration for staff increased from 34.9 percent in 2010 to 36.8 percent in 2011 and is currently at 43 percent of market. As part of its strategic financial planning process, UHR has outlined an aggressive five-year staff salary plan that will continue this trend and position U.Va. competitively.

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Fringe benefits represent a large institutional investment, approaching $200 million per year. Fringe benefits also represent an essential component of faculty and staff total compensation and for many is a key consideration in making employment decisions. A recent study by Aon Hewitt shows that the University’s benefits are highly competitive in health, vision, and dental coverage compared to peers. At a time when employee benefits across the country are seriously eroding, the graph below shows that U.Va. has been able to improve benefits while controlling costs. This is an area of distinction for the University.

2013-14 Operating Budget The VP/CHRO and reporting areas are funded through a traditional centralized budget target, as well as self-generated sales and services revenues. For 2013-14, 83 percent of the VP/CHRO operating budget is from tuition and state general funds. Sales and services activities (Temporary Search Group and Compliance and Immigration Services) represent 14 percent of funding, while an allocation from the unrestricted endowment represents 3 percent of funding.

For the VP/CHRO, the 2013-14 operating budget (see the following page) is $8.6 million, with the primary spending on compensation (97 percent). The remaining expenditures are primarily OTPS expenditures. Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan The VP/CHRO does not have any projects on the Major Capital Projects Plan.

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University of Virginia - MBU SummaryExec Level: R0800 VP: HR-Human Resources, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Recoveries

Transfers

Subtotal

MBU Totals

2014‐O Staff Salaries and benefitsWages and benefits

Subtotal

OTPS

Recoveries

Transfers

Subtotal

MBU Totals

1.7 263,509 ‐ ‐ ‐ ‐ ‐ ‐ 0.4 61,827 ‐ ‐ 2.0 325,336

73.6 6,918,055 ‐ ‐ ‐ ‐ ‐ ‐ 16.6 1,450,790 ‐ ‐ 90.3 8,368,845

‐ 42,210 ‐ ‐ ‐ 8,925 ‐ 5,660 ‐ 28,852 ‐ ‐ ‐ 85,647

75.3 7,223,774 8,925 5,660 17.0 1,541,469 92.3 8,779,828

‐ 751,299 ‐ ‐ ‐ 261,601 ‐ ‐ ‐ 386,912 ‐ ‐ ‐ 1,399,812

‐ ‐201,029 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐880,546 ‐ ‐ ‐ ‐1,081,575

‐ ‐130,000 ‐ ‐ ‐ 150,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,000

420,270 411,601 ‐493,634 338,237

75.3 7,644,044 420,526 5,660 17.0 1,047,835 92.3 9,118,065

76.3 6,830,465 ‐ ‐ ‐ ‐ ‐ ‐ 15.7 1,385,121 ‐ ‐ 92.0 8,215,586

‐ 42,452 ‐ ‐ ‐ 7,000 ‐ 5,796 ‐ 86,829 ‐ ‐ ‐ 142,077

76.3 6,872,917 7,000 5,796 15.7 1,471,950 92.0 8,357,663

‐ 713,991 ‐ ‐ ‐ 106,942 ‐ ‐ ‐ 760,045 ‐ ‐ ‐ 1,580,978

‐ ‐264,548 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐1,060,357 ‐ ‐ ‐ ‐1,324,905

‐ ‐150,000 ‐ ‐ ‐ 150,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0

299,443 256,942 ‐300,312 256,073

76.3 7,172,360 263,942 5,796 15.7 1,171,638 92.0 8,613,736

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VICE PRESIDENT FOR MANAGEMENT AND BUDGET Overview of Operations The Vice President for Management and Budget portfolio includes: the Budget Office, Business Operations, Facilities Management, Office of the Architect, Process Simplification, Procurement and Supplier Diversity Services, Space and Real Estate Management, and State Governmental Relations.

Collectively, the Management and Budget service units perform the following core functions: Develop, implement, and monitor the annual

operating budget, capital budget, and the biennial state budget;

Provide financial planning to assist in

identifying and allocating resources required to achieve strategic goals;

Lead integrated, physical planning, including the design of new facilities, renovations, and land use for effective, efficient, and sustainable capital development and historic preservation;

Manage the construction program for the

Academic Division, Medical Center, and College at Wise, with $200 million of construction work in place anticipated for the current fiscal year;

Maintain and operate the academic and health

system physical plant, including maintenance, utilities, custodial services, and grounds care for 16.4 million gross square feet in 557 buildings and 1,708 acres;

Direct the purchasing of goods and services (126,000 purchase orders through the Marketplace and 84,700 p-card transactions) and accounts payable operations (236,600 payable transactions);

Broaden and diversify the supply chain for goods and services;

Develop and maintain effective state relations

with the Executive Branch and the General Assembly in order to advance legislative, operating, and capital priorities;

Coordinate the implementation of the provisions in the Restructuring Act, the Management

Agreement, and the Virginia Higher Education Opportunity Act of 2011;

Develop space planning strategies and policies; Review and coordinate the purchase and sale of

real estate and manage a portfolio of 101 expense leases and 46 income leases;

Deliver housing, dining, transit, and other auxiliary services to support the University’s living and learning community; and

Direct the institution’s formal business

improvement effort, dedicated to improving services, simplifying processes, and optimizing the use of available resources.

Strategic Direction The Management and Budget vision statement is “to be a prudent steward of University resources and a valued partner in achieving teaching, research, service, and health care excellence.” In 2013-14, Management and Budget service units will:

Continue to enhance the organizational capacity

for financial decision-making through robust analytics and regular reporting;

Support multi-year financial planning by projecting cost drivers, monitoring commitments, and modeling sources and uses;

Further the stewardship of financial, physical, and human assets through continuous improvement of business processes and the redesign of business models to achieve an improved level of service and efficiencies;

Prepare for the implementation of the new internal financial model and the delivery of best-value and client-centered services to the University community, which includes regular measurement of performance;

Provide innovative approaches, support services,

and infrastructure to advance institutional priorities; and

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Focus on meeting the needs of customers (faculty, staff, students, and general public) with competitive, high-quality services.

2013-14 Operating Budget The Management and Budget service units are primarily funded through a traditional centralized budget target, with the exception of Facilities Management and Business Operations, both of which operate on a cost recovery basis. The operating budget (see page 116), net of recoveries from internal customers, totals $194.7 million in 2013-14.

Auxiliary activity comprises 53.4 percent of the budget. Auxiliaries are responsible for supporting both their operating and maintenance costs, as well as meeting reserve requirements for the long-term maintenance of their facilities. Auxiliary activities include housing, dining, parking and transportation, bookstores, printing and copying, mail services, child care, management of the John Paul Jones Arena, and leasing activity related to the National Radio Astronomy Observatory and the Judge Advocate General’s Legal Center and School. With the auxiliaries making up the majority of the budget, other than personal services is the predominant expenditure category including inventory purchases, supplies, utilities, and maintenance of facilities. Within the auxiliary budgets, 32 percent is comprised of transfers in support of repair and renovation, expansion reserves, and debt service. Forty-four percent of the budget is funded from tuition and state general funds. Facilities Management is provided with resources to fund the cost of E&G-related utilities ($37.2 million), custodial services ($8.7 million), and maintenance ($29.7 million) for those E&G buildings in the Academic Division. While these numbers are

reflected in the net operating budget, a holistic picture of the scope of Facilities Management operations includes the gross activity for both the Academic Division and the Medical Center, which is projected to total $521.6 million in 2013-14. In 2013-14, the University proposes to allocate to Management and Budget service units: $1.0 million for utility increases for E&G space; $1.5 million in support of the Board-approved plan to address deferred maintenance; $69,000 for operations and maintenance of new facilities (New Cabell Hall heating and air and Lawn Range Room sprinklers); and $21,000 for increases in leasing costs. Funding will be allocated to the target budgets for the above items and for salary increases and compression adjustments as authorized by the state. Central University Reserves The University holds reserves centrally to: 1) manage contingencies, 2) temporarily hold funds that will be allocated during the fiscal year, 3) pay debt service, 4) meet institutional expenses that are not assigned to any one operating unit, and 5) hold offsetting entries to other parts of the budget. Examples of items held in central reserves for 2013-14 include: $14.4 million for employee salary increases and

associated fringe benefits, including a 3.0 percent increase for University staff paid from centrally-budgeted funds (comprised of the 2.0 percent state-authorized increase and a supplemental 1.0 percent Board-authorized increase), the state-approved compression adjustment for classified staff, and the Board-approved 4.75 percent increase for T&R faculty. The 2.0 percent classified staff increase is already reflected within the respective unit budgets;

$8.8 million for repayment of institutional debt related to the Student Information System, Rouss Hall, the South Lawn Project, purchase of 2400 Old Ivy Road; and the Emmet-Ivy parking garage, as well as for anticipated real estate acquisitions;

$4.8 million for high-priority funding requests

addressed during the budget development process;

$3.0 million for the President’s Fund for Excellence;

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$2.6 million specifically designated by the state to fund cancer research, focused ultrasound activities, and the Virginia Foundation for the Humanities;

$5.4 million related to new fees and tuition rates,

reflecting the distribution of 1 percent of incremental undergraduate tuition to schools, as well as a central holdback for AccessUVa and administrative services;

$2.6 million for O&M costs for new facilities coming on line, utility increases, and deferred maintenance investment;

$16.9 million of general and administrative cost

recoveries from auxiliaries, the Medical Center, and the University Physician’s Group, representing payment for services provided by the University;

$11.9 million assessments to existing programs,

representing payment for administrative services provided by the University and AccessUVa;

$5.7 million in fees collected from out-of-state

students, required by the Commonwealth to be remitted to cover a proportionate share of capital project and Equipment Trust Fund debt service; and

$8.8 million reserved for general contingencies,

uncollectible tuition, and unexpected cold weather and higher utility rates.

Capital Plan Construction is ongoing for the East Chiller Plant and Lee Street Re-alignment ($36.5 million from debt and Medical Center operating funds), the Rotunda Roof Repairs ($7.2 million from state general funds and historic preservation gifts), and Facilities Management Landscape Shop ($2.0 million from facilities management operating reserves). All projects are expected to be completed by September 2013. Active planning is underway for the remainder of the Rotunda Renovation ($43.5 million from state and gift funds), North Grounds Mechanical Plant ($13.1 million in debt and utility infrastructure reserves), and Newcomb Road Chiller Plant ($11.6 million from debt, utility infrastructure reserves, and auxiliary funding).

Work is expected to continue in 2013-14 for the Rotunda Renovations project now that the project received support from the 2013 General Assembly session (to be matched by private fundraising). Business Operations units, as auxiliaries, manage their own capital budgets. There are several significant building projects in progress: Construction is ongoing for three Alderman Road

Residence Halls ($69.8 million from housing revenues and debt), which will be completed this summer prior to the start of the fall 2013 academic session.

Active planning is occurring for the sixth new Alderman Road Residence Hall (expected to cost $38 million from housing revenues and debt).

The below schedule outlines the expected activity in the R&R and expansion reserves for the Business Operations auxiliary units. It is expected that all units, except for Housing, will meet the Board reserve policy of re-investing at least 1.5 percent of replacement value of the facilities. Housing worked to limit rate increases for 2013-14, resulting in challenges to meet the Board’s reserve requirement.

Business Operations (in thousands)

R&R Reserve


Projected Balance, 7/1/13 $19,926 $16,362 $36,288

Plus: Transfers from Operating $14,204 $3,450 $17,654

Less: Planned Expenditures ($11,960) ($5,225) ($17,185)

Projected Balance, 6/30/14 $22,170 $14,587 $36,757

For Housing, planned 2013-14 expenditures

totaling $9.5 million include the Alderman Road Housing renewal; Brown College roof replacement; McCormick Road renovations of Metcalf, Lefevre and Hancock; Hereford kitchen repairs of Vaughn, Malone and Weedon; and the balance toward numerous other safety and security and repair and renovation projects addressing deficiencies identified in the facilities audit.

For Dining, planned 2013-14 expenditures

include $2.5 million earmarked for facility repairs and improvements to dining facilities, including New Cabell.

For Parking and Transportation, planned

2013-14 expenditures from the reserves include

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$850,000 for parking lot and garage repairs, lighting upgrades, and structural analysis and $1.1 million for garage and lot maintenance, equipment and vehicle replacement, and other needs.

For Printing and Copying, planned 2013-14

planned reserve expenditures include $805,000 for new vehicle, equipment, and system purchases.

The University Bookstore’s planned 2013-14

reserve expenditures include $775,000 for the Alderman/Clemons/Newcomb chiller replacement and $150,000 for the computer system replacement. Additionally, $85,000 is earmarked for Bookstore and Cavalier Computers unforeseen facility repairs and improvements and equipment and computer system upgrades.

Other repair and renovation reserves are held for

the Child Development Centers, the Cemetery, Mail Services, JPJ Arena, Business Operations, and Cavalier Advantage. Planned expenditures from the reserves in 2013-14 include: Cemetery Expansion, JPJ Arena equipment and furnishing replacements, and Mail Services acquisition of vehicles.

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University of Virginia - MBU SummaryExec Level: R0280 VP: MB-VP/Mgmt & Budget, Mbu Level: <All>

Excludes MB-University Reserves and MB-General Institutional

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Recoveries


Transfers

Subtotal

MBU Totals

24.0 3,817,367 ‐ ‐ 1.5 213,334 ‐ ‐ ‐ ‐ 3.5 529,375 29.0 4,560,076

1,268.8 73,407,592 ‐ ‐ 1.0 101,889 ‐ ‐ ‐ ‐ 264.1 12,517,942 1,533.8 86,027,423

‐ 2,479,601 ‐ ‐ ‐ 12,740 ‐ ‐ ‐ ‐ ‐ 1,625,500 ‐ 4,117,841

‐ 15,479 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,479

1,292.8 79,720,039 2.5 327,963 267.6 14,672,817 1,562.8 94,720,819

‐ 536,444,168 ‐ 2,297,672 ‐ 2,450,251 ‐ 728,553 ‐ 19,500 ‐ 63,540,202 ‐ 605,480,346

‐ ‐518,757,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐8,911,000 ‐ ‐527,668,000

‐ 5,314,325 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 13,831,409 ‐ 19,145,734

‐ ‐2,869,084 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 49,400 ‐ 17,883,146 ‐ 15,063,462

20,132,409 2,297,672 2,450,251 728,553 68,900 86,343,757 112,021,542

1,292.8 99,852,448 2,297,672 2.5 2,778,214 728,553 68,900 267.6 101,016,574 1,562.8 206,742,361

24.0 3,565,878 ‐ ‐ 0.5 105,100 ‐ ‐ ‐ ‐ 3.5 527,588 28.0 4,198,566

1,280.0 72,402,078 ‐ ‐ 2.0 213,457 ‐ ‐ ‐ ‐ 258.9 12,692,506 1,540.9 85,308,041

0.0 2,636,863 ‐ ‐ 0.0 6,306 ‐ ‐ ‐ ‐ 0.0 1,446,355 0.0 4,089,524

0.0 16,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 16,500

1,304.0 78,621,319 2.5 324,863 262.4 14,666,449 1,568.9 93,612,631

0.0 525,774,556 ‐ 2,205,000 0.0 1,763,460 ‐ 750,510 0.0 20,300 0.0 65,449,399 0.0 595,963,225

0.0 ‐518,788,632 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐9,033,556 0.0 ‐527,822,188

‐ 5,314,325 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 135,100 ‐ 17,379,421 ‐ 22,828,846

‐ ‐5,314,325 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,438,800 ‐ 10,124,475

0.0 6,985,924 2,205,000 0.0 1,763,460 750,510 0.0 155,400 0.0 89,234,064 0.0 101,094,358

1,304.0 85,607,243 2,205,000 2.5 2,088,323 750,510 0.0 155,400 262.4 103,900,513 1,568.9 194,706,989

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University of Virginia - MBU SummaryExec Level: R0280 VP: MB-VP/Mgmt & Budget, Mbu Level: <All>Includes MB-University Reserves and MB-General Institutional Only

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Transfers

Subtotal

MBU Totals


Subtotal

OTPS

Financial Aid

Central Assessment

Recoveries


Transfers

Subtotal

MBU Totals

‐ ‐ ‐ ‐ ‐ 37,890 25.0 3,910,000 ‐ ‐ ‐ ‐ 25.0 3,947,890

‐ ‐ ‐ ‐ 0.0 617,000 37.0 2,380,000 ‐ ‐ ‐ ‐ 37.0 2,997,000

‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,700,000 ‐ ‐ ‐ ‐ 0.0 1,700,000

‐ ‐ ‐ ‐ ‐ ‐ 7.0 170,000 ‐ ‐ ‐ ‐ 7.0 170,000

0.0 654,890 69.0 8,160,000 69.0 8,814,890

0.0 12,205,452 ‐ ‐ ‐ 717,021 0.0 4,930,000 ‐ ‐ ‐ ‐1,123,996 0.0 16,728,477

‐ ‐61,895,586 ‐ ‐ ‐ ‐ 0.0 3,910,000 ‐ ‐ ‐ ‐ 0.0 ‐57,985,586

‐ ‐676,355 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐676,355

‐ ‐14,068,037 ‐ ‐398,482 ‐ ‐2,266,193 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐16,732,712

‐ 467,904 ‐ 656,064 ‐ 700,760 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,824,728

‐ ‐5,524,069 ‐ 1,161,960 ‐ 2,894,449 ‐ 8,603,802 ‐ 934,449 ‐ ‐ ‐ 8,070,591

0.0 ‐69,490,691 1,419,542 2,046,037 0.0 17,443,802 934,449 ‐1,123,996 0.0 ‐48,770,857

0.0 ‐69,490,691 1,419,542 0.0 2,700,927 69.0 25,603,802 934,449 ‐1,123,996 69.0 ‐39,955,967

1.0 7,862,800 ‐ ‐ 0.0 74,900 26.0 4,140,000 ‐ ‐ ‐ ‐ 27.0 12,077,700

11.3 6,478,625 ‐ ‐ 0.0 1,198,500 39.0 2,520,000 ‐ ‐ ‐ ‐ 50.3 10,197,125

‐ ‐ ‐ ‐ ‐ ‐ 0.0 1,800,000 ‐ ‐ ‐ ‐ 0.0 1,800,000

0.0 402,300 ‐ ‐ ‐ ‐ 9.0 180,000 ‐ ‐ ‐ ‐ 9.0 582,300

12.3 14,743,725 0.0 1,273,400 74.0 8,640,000 86.3 24,657,125

0.0 40,433,915 ‐ ‐ 0.0 4,905,992 0.0 5,220,000 ‐ ‐ 0.0 ‐1,139,000 0.0 49,420,907

0.0 ‐63,943,975 ‐ ‐ ‐ ‐ 0.0 4,140,000 ‐ ‐ ‐ ‐ 0.0 ‐59,803,975

0.0 ‐11,919,730 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐11,919,730

0.0 ‐15,250,329 0.0 ‐398,482 0.0 ‐2,664,027 ‐ ‐ ‐ ‐ ‐ ‐ 0.0 ‐18,312,838

‐ 467,904 ‐ 656,064 ‐ 700,760 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,824,728

‐ 8,174,457 ‐ 1,171,846 ‐ 3,390,853 ‐ 12,002,702 ‐ 265,000 ‐ ‐ ‐ 25,004,858

0.0 ‐42,037,758 0.0 1,429,428 0.0 6,333,578 0.0 21,362,702 265,000 0.0 ‐1,139,000 0.0 ‐13,786,050

12.3 ‐27,294,033 0.0 1,429,428 0.0 7,606,978 74.0 30,002,702 265,000 0.0 ‐1,139,000 86.3 10,871,075

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SENIOR VICE PRESIDENT FOR UNIVERSITY ADVANCEMENT Overview of Operations The mission of University Advancement is to ensure the University’s future by engaging constituents, supporting the University’s strategic priorities, and inspiring the minds, hearts and generous support of internal (schools/units/administrators) and external (alumni, parents, and friends, including corporations and foundations) partners. University Advancement is organized into three major divisions—University Development, Engagement, and Advancement Services, including WTJU, a non-commercial radio station serving the University and surrounding communities with round-the-clock programming throughout the year. University Advancement consists of approximately 150 full-time professionals who work in partnership with the University’s 11 schools, 15 University-related fundraising foundations, and close to 300 members of the University’s advancement community (administrators, fundraisers, communicators, and alumni relations professionals). Strategic Direction University Advancement’s fundraising divisions (Regional, Reunions, Annual Giving, Corporate and Foundations, Planned Giving, and Principal Gifts) provide direct support for the University’s strategic plan by soliciting gifts for identified priorities. Engagement officers share information about institutional priorities through numerous events featuring university leaders and faculty speakers. WTJU reflects the broadest educational goals of the University, serving as a communications link between the institution and surrounding community and bringing the resources of the University to its neighbors. University Advancement’s budget for 2013-14 aligns directly with the University's strategic focus as it re-organizes and re-deploys resources in direct support of three identified institutional priorities: Faculty support AccessUVa Historic Preservation and Restoration, Jefferson

Grounds Initiative University Advancement will continue to work closely with academic and volunteer leadership to collaborate in support of fundraising objectives that integrate with the priorities of the University and its

academic schools and units. Additionally, University Advancement will continue to work towards the reorganization of annual giving. 2013-14 Operating Budget University Advancement is predominately funded through a traditional centralized budget target, with a small auxiliary operation in WTJU Radio. Units classified as auxiliary units (an entity that exists to furnish goods or services to students, faculty, or staff and charges a fee to recover the cost of the service) are expected to be fully self-supporting for both operating and capital purposes. An auxiliary unit, WTJU will retain revenues generated (student fees) and will be held responsible for generating sufficient revenues to cover its planned expenditures. In addition, the unit is required to pay a general and administrative overhead to the University for support services; for 2013-14, WTJU will pay $11,000. For 2013-14, 94 percent of University Advancement’s operating budget is from private unrestricted funds (endowment fee and endowment distribution), while 6 percent is funded from other school support for Health Sciences fundraising, restricted gifts, grants, and WTJU’s student fees. All development activities are funded from non-state sources.

University Advancement’s 2013-14 operating budget (see page 120) is $19.1 million, with the majority of spending on compensation (67 percent). The remaining expenditures are allocated around completing the present fundraising initiatives, while preparing to go further, faster, and with greater intensity in programs for all aspects of the University’s constituency (cultivation, solicitation, stewardship, and recognition).

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Funding will be allocated to the target budgets for salary increases and compression adjustments as authorized by the state. Capital Plan University Advancement does not have any projects on the Major Capital Projects Plan, but plays a significant role in the fundraising needed for many projects in the Capital Plan. University Advancement’s priority for Historic Preservation and Restoration, as it relates to required fundraising for both the Rotunda Renovation and the Jefferson Grounds Initiative, will be key factors for the success of both capital initiatives.

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University of Virginia - MBU SummaryExec Level: R0065 VP: DV-SVP University Advancement, Mbu Level: <All>

1


FTE Amount

2


FTE Amount

3


FTE Amount

4

Private Restricted

FTE Amount

5


FTE Amount

6

Auxiliary


FY CTCS Category


Subtotal

OTPS

Recoveries

Subtotal

MBU Totals


Subtotal

OTPS

Recoveries

Subtotal

MBU Totals

‐ ‐ ‐ ‐ 24.5 3,503,536 ‐ ‐ ‐ ‐ ‐ ‐ 24.5 3,503,536

‐ ‐ ‐ ‐ 119.1 8,543,151 2.0 113,000 ‐ ‐ 2.0 136,080 123.1 8,792,231

‐ ‐ ‐ ‐ ‐ 653,000 ‐ 43,000 ‐ ‐ ‐ 5,100 ‐ 701,100

143.6 12,699,687 2.0 156,000 2.0 141,180 147.6 12,996,867

‐ ‐ ‐ 73,039 0.0 7,036,573 ‐ 164,114 ‐ 407,799 ‐ 10,595 0.0 7,692,120

‐ ‐ ‐ ‐ ‐ ‐230,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐230,000

73,039 0.0 6,806,573 164,114 407,799 10,595 0.0 7,462,120

73,039 143.6 19,506,260 2.0 320,114 407,799 2.0 151,775 147.6 20,458,987

‐ ‐ ‐ ‐ 23.8 3,396,705 ‐ ‐ ‐ ‐ ‐ ‐ 23.8 3,396,705

‐ ‐ ‐ ‐ 121.8 9,129,001 2.0 109,750 ‐ ‐ 2.0 135,850 125.8 9,374,601

‐ ‐ ‐ 18,900 ‐ ‐ ‐ 43,600 ‐ ‐ ‐ 6,000 ‐ 68,500

18,900 145.6 12,525,706 2.0 153,350 2.0 141,850 149.6 12,839,806

‐ ‐ ‐ 60,600 0.0 5,623,559 ‐ 189,650 0.0 618,557 ‐ 6,650 0.0 6,499,016

‐ ‐ ‐ ‐ ‐ ‐227,950 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐227,950

60,600 0.0 5,395,609 189,650 0.0 618,557 6,650 0.0 6,271,066

79,500 145.6 17,921,315 2.0 343,000 0.0 618,557 2.0 148,500 149.6 19,110,872

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THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE 2013-2014 OPERATING BUDGET SUMMARY

The 2013-14 operating expenditure budget for Wise is projected to total $38.6 million, an increase of 4.6 percent as compared to the revised 2012-13 budget. The 2013 General Assembly approved an increase of $365,871 in Wise’s general fund appropriation for E&G operating programs and state financial aid. This increase includes funding for base operating support, an additional 1.0 percent faculty salary increase to bring the total faculty salary increase to 3.0 percent, expansion of the Summer College program, and additional undergraduate financial assistance. The College at Wise Advisory Board reviewed and approved this budget on March 22, 2013. FUNDING SOURCES OF THE OPERATING BUDGET Wise’s operating financial plan on page 124 projects available operating resources from state general funds, tuition and fees, sponsored research and F&A cost recoveries, endowment distributions, gifts, auxiliary revenues, and other sources. Available resources for the operating budget are $38.6 million for 2013-14, a 4.6 percent increase from the revised sources available for 2012-13 of $36.9 million. The charts below demonstrate which operating revenues will provide the resources to fund the operating expenditure budget.

2013-14 2012-13

In 2013-14, the general fund appropriation (39.7 percent) will continue to provide the greatest proportion of the operating budget. Tuition and fees revenue will comprise 26.9 percent of the 2013-14 funding sources, followed by sales and services and other (including auxiliary revenues, investment income, and other miscellaneous revenue) (24.6 percent), endowment income (5.1 percent), grants and contracts (2.3 percent), and gifts (1.4 percent).

FUNDING SOURCES State General Fund Appropriation The general fund appropriation for 2013-14 is projected to total $15.3 million. This represents a decrease of 1.0 percent as compared to the revised 2012-13 budget, which included general funds provided for one-time state-authorized bonuses during 2012-13. The 2013-14 appropriation does not reflect expected incremental general funds for staff salary increases and related retirement and other fringe

26.9%

39.7%2.3%

5.1%1.4%

24.6%

Tuition & Fees


Sponsored Programs


Expendable Gifts

Sales & Services and Other

26.7%

42.0%

2.5%

5.2%1.4%

22.2%

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benefits to result from approval of the 2013 General Assembly budget. A general fund appropriation totaling $195,860 for the Southwest Public Education Consortium (SVPEC) will continue in 2013-14. This appropriation is through the Virginia Department of Education. The Graduate Medical Education Consortium (GMEC) will receive reduced general fund appropriation in 2013-14 totaling $107,530. This funding originates from the Virginia Department of Health and represents a decrease of $103,591 as compared to the revised 2012-13 budget. Wise serves as the fiscal agent for both of these organizations. State financial aid totals $2.1 million. Tuition and Fees Tuition and fees, net of $50,000 for financial aid, are projected to total $10.4 million in 2013-14. This represents a $520,449 or 5.3 percent increase over revised projections and includes both E&G and auxiliary fees. Wise’s continued commitment to student affordability is reflected in the recommendation of a 5.0 percent increase in tuition for in-state students and a 4.8 percent increase for out-of-state students and all foreign study courses. The Center for Teaching Excellence will continue to offer dual enrollment opportunities and professional teaching training programs. The technology fee will be $125 in 2013-14, an increase of $4 over 2012-13. The state-required out-of-state capital fee assessed to all non-resident students will remain at $632 per year in 2013-14. Planned enrollment, consistent with the Board-approved projections, continues to aid in providing incremental tuition and E&G revenue. Actual full-time equivalent enrollment for the fall 2012 semester totaled 1,707, an increase of 3.4 percent as compared to fall 2011. Strategies to improve retention, progression, and six-year graduation rates, including the early alert retention program, were implemented in 2012-13. Through the support of the entire College community, these strategies and goals have resulted in improved student success. The more selective process in the offer of provisional admission to freshman and transfer applicants

has also impacted student success. Wise continues to offer reduced tuition rates for students residing in targeted counties in Kentucky and Tennessee. Enrollment is projected at 1,714 for fall 2013, a 0.4 percent increase as compared to fall 2012. Student fees provide operating revenue for the majority of Wise’s student life programs. Activities receiving funds from student fee revenue include the student government association; student publications; intramural and outdoor recreational activities; graduation fee; student health services; athletics; student life programs; operating, maintenance, and housekeeping personnel assigned to Cantrell Hall and the Slemp Student Center; and debt service for the Slemp Student Center, Smith Dining Commons, and the football stadium. No state funds are available to support these programs and operations. Historically, Wise has been in the middle of the 15 public higher education institutions in Virginia in overall fees and has been one of the lowest in total cost of attendance in the Commonwealth. The student service fee for full-time students will increase 5.0 percent from $3,532 in 2012-13 to $3,708 in 2013-14. Grants, Contracts, and F&A Recoveries Sponsored research direct costs and indirect cost recoveries are projected to decrease by $43,695 or 4.7 percent in 2013-14 as compared to the revised 2012-13 budget. Several grants are scheduled to end on June 30, 2013, and the PTE Clinical Faculty/Mentor grant will end September 30, 2013. Endowment Income and Gifts Projected endowment distributions total $2.0 million in 2013-14, an increase of 3.5 percent as compared to 2012-13. Private gifts, including $88,200 of athletic gift revenue, are projected to total $534,083 in 2013-14, representing a 2.3 percent increase over the 2012-13 revised projection. Sales and Services and Other Sources of Funds Other sources of funds for the 2013-14 operating budget represents sales and services, which include non-academic revenues supporting

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auxiliary services to students, faculty, and staff, such as housing rents, board rates, bookstore sales, parking passes and fines, athletic conference revenues and gate receipts, and other activities. Sales and services income is estimated to total $9.5 million in 2013-14, an increase of 15.8 percent above the 2012-13 revised budget of $8.2 million. The 2013-14 budget reflects additional revenues generated from increased housing rents, increased meal plan rates as a result of implementing new meal plan options for students, additional bookstore sales in the Prior Convocation Center and the Humphreys-Thomas Field House, and additional athletic conference revenue and gate receipts. As explained in more detail on page 127, these revenues will be used to support increased operating expenses of Wise’s auxiliary enterprises.

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University of Virginia's College at WiseProjected Operating Sources

( $ )

Sources Amount1

Tui on and GF

Appropria on

2

Grants & Contracts,

F&A

3


4

Private Restricted

5


Other

6

Auxiliary Total‐Amount

FY Resources Category

2013‐R Appropria ons: State

Tui on


Student Fees

Sales & Services

Grants & Contracts



Endowment Admin Fee

Gi s

MBU Totals

2014‐O Appropria ons: State

Tui on


Student Fees

Sales & Services

Grants & Contracts



Endowment Admin Fee

Gi s

MBU Totals

15,489,164 15,489,164

7,400,000 7,400,000

‐50,000 ‐50,000

275,791 2,242,940 2,518,731

8,194 72,600 8,112,761 8,193,555

883,082 883,082

38,790 38,790

1,838,354 1,838,354

82,794 82,794

522,228 522,228

23,123,149 921,872 82,794 2,360,582 72,600 10,355,701 36,916,698

15,340,971 15,340,971

7,896,670 7,896,670

‐50,000 ‐50,000

281,241 2,261,269 2,542,510

2,500 72,600 9,411,124 9,486,224

842,767 842,767

35,410 35,410

1,903,523 1,903,523

84,415 84,415

534,083 534,083

23,471,382 878,177 84,415 2,437,607 72,600 11,672,393 38,616,574

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OPERATING USES BY ACTIVITY The schedule of Wise’s projected operating uses by activity on page 126 summarizes total expenditures by program: direct instruction, research, public service, academic support, student services, general administration, O&M of physical plant, scholarships and fellowships, and auxiliary/self-supporting. The following charts show the percentage of the total operating budget dedicated to each major activity:

2013-14 2012-13

Direct Instruction Direct instruction includes teaching and research (T&R) faculty, support staff, equipment, and operating costs associated directly with teaching. The 2013-14 instruction budget totals $10.8 million, an increase of 2.4 percent as compared to the revised 2012-13 budget. The 2013-14 instruction budget includes $150,000 to support T&R faculty merit increases implemented in December 2012 and will continue through 2017-2018 with a net allocation of $900,000. Additionally, reserve funds for T&R faculty salaries will total $200,000 in 2013-14, an increase of 22 percent as compared to the 2012-13 revised budget. Research and Public Service The SVPEC, GMEC, the Pro-Art Association of Wise County, and the City of Norton make up the public service activities on the Wise campus. Sponsored research, both state and federal grant funded, is also included within this program. The 2013-14 operating budget for research and public service decreases by 5.6 percent to $1.1 million, primarily as a result of the June 30, 2013 completion of various sponsored program awards and the reduced appropriation for the GMEC program.

The 2013-14 general fund appropriation for the SVPEC will total $196,000. From this amount, $71,849 will be allocated to the William King Regional Arts Center, a non-state agency located in Abingdon, Virginia, for the Van Gogh outreach program that serves the far southwest Virginia region. The SVPEC also approved the allocation of $21,242 of its appropriation to the E&G budget during 2012-13. The GMEC will receive a general fund allocation through the transfer of appropriation from the Virginia Department of Health in the amount of $107,530, a decrease of 49 percent as compared to the revised 2012-13 budget. The GMEC mission will continue, improving access to high-quality primary care for the citizens of Virginia by forming educational partnerships between rural and underserved communities in Southwest Virginia. Funding for the Pro-Art Association of Wise County and the City of Norton will total $19,000 in 2013-14.

28.2%

2.8%

9.8%

4.1%9.2%

4.8%

10.6%

30.5%

Instruction


Academic Support

Student Services



Financial Aid

Auxiliaries

28.7%

3.1%10.1%

4.3%9.6%

5.0%

10.9%

28.3%

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University of Virginia's College at WiseProjected Operating Uses - By Activity

1

Tui on and GF

Appropria on

Fte Amount

2

Grants & Contracts,

F&A

Fte Amount

3


Fte Amount

4

Private Restricted

Fte Amount

5


Other

Fte Amount

6

Auxiliary

Fte Amount Total‐Fte Total‐AmountFY Subtotal for Program Name 1Program SortProgram Name

2013‐R 1 Direct Instruc on

1 Research

1 Public Service

1 Academic Support

1 Student Services



E&G Programs Total





MBU Totals

2014‐O 1 Direct Instruc on

1 Research

1 Public Service

1 Academic Support

1 Student Services



E&G Programs Total





MBU Totals

104.5 10,019,553 2.9 337,794 1.1 235,472 108.4 10,592,819

0.5 47,082 0.5 47,082

3.9 568,961 3.1 536,996 2,500 5,000 7.0 1,113,457

41.0 3,717,118 19,654 4,500 41.0 3,741,272

24.3 1,585,582 100 24.3 1,585,682

52.7 3,327,163 1.0 82,794 66,925 63,000 53.7 3,539,883

25.1 1,830,517 25.1 1,830,517

251.4 21,048,894 6.5 921,872 1.0 82,794 1.1 324,551 72,600 260.0 22,450,710

2,074,255 1,948,419 4,022,674

2,074,255 1,948,419 4,022,674

87,612 54.8 10,355,701 54.8 10,443,313

87,612 54.8 10,355,701 54.8 10,443,313

251.4 23,123,149 6.5 921,872 1.0 82,794 1.1 2,360,582 72,600 54.8 10,355,701 314.8 36,916,698

103.3 10,313,438 2.9 281,640 1.1 253,486 107.2 10,848,564

0.5 36,410 0.5 36,410

3.9 491,129 3.1 560,127 2,500 5,000 7.0 1,058,756

41.0 3,773,714 19,654 4,500 41.0 3,797,868

24.3 1,577,769 100 24.3 1,577,869

52.7 3,357,032 1.0 84,415 66,925 63,000 53.7 3,571,372

25.1 1,858,362 25.1 1,858,362

250.2 21,371,444 6.5 878,177 1.0 84,415 1.1 342,565 72,600 258.8 22,749,200

2,099,938 2,006,842 4,106,780

2,099,938 2,006,842 4,106,780

88,200 59.0 11,672,393 59.0 11,760,593

88,200 59.0 11,672,393 59.0 11,760,593

250.2 23,471,382 6.5 878,177 1.0 84,415 1.1 2,437,607 72,600 59.0 11,672,393 317.8 38,616,574

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Academic Support Academic support includes library services, technological and computer services, and general academic services to both students and instructional faculty. Faculty development and recruitment are also included within this program. The 2013-14 academic support budget totals $3.8 million, an increase of 1.5 percent as compared to the revised 2012-13 budget. Student Services Student Services includes social and cultural development activities, counseling and career guidance, as well as general student affairs services. Enrollment management, financial aid services, registration services, publication costs associated with student recruitment, and programs designed to meet the guidelines of the American Disabilities Act also are part of the student services activity. The 2013-14 student services budget totals $1.6 million, a 0.5 percent decrease as compared to the revised 2012-13 budget. General Administration Institutional support from executive management, fiscal operations, logistical services, development, public relations, and staff training and development totals $3.6 million in 2013-14, an increase of 0.9 percent as compared to the revised 2012-13 budget. This increase includes an allocation for College Staff merit increases totaling $77,000 and $200,000 of increased E&G recoveries from auxiliaries, totaling $900,000 in 2013-14. O&M of Plant Physical plant services in housekeeping, maintenance operations, utilities, landscaping and grounds maintenance totals $1.9 million in 2013-14, an increase of 1.5 percent as compared to the revised 2012-13 budget. Student Financial Aid The student financial aid budget totals $4.1 million in 2013-14, an increase of 2.1 percent as compared to the revised 2012-13 budget. The general fund appropriation for student financial aid in 2013-14 totals $2.1 million, reflecting increased state support of $113,736. Student financial aid from private funds and grants totals

$2.0 million in 2013-14, an increase of $58,423 over the revised 2012-13 budget. Auxiliary Enterprises The 2013-14 auxiliary enterprises operating budget totals $11.8 million. Self-supporting activities include student housing operations, conference events, bookstore, dining services, fleet vehicle management, SWVA Tech Center conferences, printing and copying services, parking and transportation, student health services, student union operations, athletics, and debt service for residence halls, dining hall, football stadium, and student union buildings. Funded solely by revenue collected for services provided to students, faculty, staff and the general public, the auxiliary enterprises operating budget comprises 30.5 percent of Wise’s total operating budget. Student Housing Occupancy levels are projected to remain between 92 to 100 percent in 2013-14. To maintain and effectively operate Wise’s residence halls, revenue must reflect the cost of operation because the Commonwealth does not provide operational funding for residence halls. Continuing to provide residence life opportunities to meet the needs and expectations of the student body will require a 7 percent increase in room rates. This increase includes the funding stream to maintain the financial model for the capital outlay program that is currently underway. The 2013-14 operating budget for residence hall programs totals $2.7 million. The 2013-14 operating budget for conference events totals $177,700. Parking & Transportation The 2013-14 operating budget for parking and transportation services totals $155,100. Services include parking management, along with associated staffing including campus police. Dining Services Projected 2013-14 expenditures in the dining services operating budget will total $1.9 million. To maintain and effectively operate Wise’s dining services, revenue must reflect the cost of operation. To continue providing meal opportunities that meet the needs and

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expectations of the student body, Wise must keep its meal revenue in line with inflationary increases and operational needs. The CPI for the out-of-home food service for 2012 was 2.7 percent. Based on negotiations with Chartwells, Wise’s dining service provider, the meal plan rate for on-campus residents will increase 4 percent, with an increase of 5 percent for optional meal plan contracts for commuting students. Bookstore The 2013-14 operating budget for the bookstore will total $1.4 million, a 7.8 percent increase as compared to revised 2012-13 projections. The additional retail areas in the David J. Prior Convocation Center and the Humphreys-Thomas Field House have resulted in increased sales in merchandise. Athletics The 2013-14 operating budget for the intercollegiate athletics program totals $2.4 million. In July 2012, Wise was approved for the first step of a three-year process for membership in the NCAA Division II. In February 2013, the Mountain East Conference (MEC), of which Wise is a charter member, announced that its application for membership had been approved by the NCAA Division II Membership Committee. The MEC will officially become the 25th NCAA Division II conference on September 1, 2013 and immediately assume active status. To meet Title IX compliance, funding for Women’s Lacrosse and Women’s Golf is included in the 2013-2014 athletics budget. Merit increases for College Staff will also be allocated in 2013-14. Expenditures for intercollegiate athletic programs include all athletic team travel and meals, wages for student and part-time coaching personnel, uniforms, and equipment, as well as all expenses related to recruitment activities. Staffing FTE positions for 2013-14 have been allocated as follows and reflect an increase of three positions over revised staffing levels in 2012-13:

E&G 250.2 Auxiliary Enterprises 59.0 Sponsored Programs 6.5 Private Sources 2.1 Total 317.8 The 1.2 reduction in E&G FTEs as compared to the revised 2012-13 budget is due to the elimination of an unneeded T&R faculty position that was budgeted in Software Engineering and the shift in funding part of another position from E&G funds to private sources. Of the four additional auxiliary FTE positions, three have been allocated to athletics to support Women’s Lacrosse, Trainer, and Strength & Conditioning. The remaining FTE has been allocated to the Russell County Conference Center.

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UNIVERSITY OF VIRGINIA MEDICAL CENTER 2013-2014 BUDGET SUMMARY

The Medical Center’s 2013-2014 fiscal plan has been developed while considering the challenge of providing patient care, teaching, and research services in an increasingly changing health care industry. The full impact of the Accountable Care Act will not be realized for a number of years; however, many of its provisions have already been implemented. The impact will be decreased reimbursements from government payors and an industry-wide erosion of pricing power with private payors. At the same time, costs associated with providing quality patient care will continue to have upward pressure due to increases in medical supply, pharmaceutical, and medical device expenses, growing administrative burden, and a shortage of health care workers. These changes require proactive fiscal planning now to ensure meeting the mission of the Health System in the future.

To meet these challenges, the Medical Center utilizes a priority-based budget process to align resource allocations with Medical Center strategies and goals to achieve the Health System’s strategic planning goal of becoming a top decile academic medical center based on quality measures. The Medical Center budget development process is operationally focused and highly participatory. 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 discharges, length of stay, and productivity standards which drive the number of employees. The budget is consistent with the Long Range Financial Plan and has been prepared to move the Medical Center toward the goal of a cost structure no higher than Medicare payments by 2015-16. When the Medical Center began this process, costs exceeded Medicare payments by 14 percent. In 2012-13, the Medical Center estimates the gap will be reduced to 9 percent. The final budget provides each operating unit a cumulative operating budget that contains service demand forecasts, required full-time equivalent personnel, and non-labor expenses. BUDGET DEVELOPMENT ASSUMPTIONS Market Conditions For 2013-14, discharges are budgeted to grow 2.6 percent from 2012-13 projected levels. The growth will be facilitated by improved patient flow resulting from the newly constructed 72-bed tower that increased physical inpatient bed capacity from 589 in 2012 to 661 inpatient beds in fiscal year 2013. The plan is to staff these

beds as demand grows. Inpatient and outpatient demand for healthcare services from the existing population is expected to grow by a weighted average of 4.0 percent. The Medical Center is also expected to capture additional market share in high case mix index (CMI) services by implementing the Centers of Excellence in the strategic plan. The following table includes historical and projected patient volumes:

Actual

2011-12 Projected 2012-13

Budget 2013-14

Discharges - Medical Center 28,484 28,711 29,458 Discharges - Transitional Care Hospital 222 311 398 Adjusted Discharges 52,867 53,795 55,662 Average Length of Stay (ALOS) -Medical Center

5.82 5.68 5.45

ALOS - Transitional Care Hospital 27.85 26.62 28.00

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Actual 2011-12

Projected 2012-13

Budget 2013-14

Patient Days – Medical Center 165,746 161,300 160,546 Patient Days – Transitional Care Hospital 5,821 8,279 11,144 Clinic & Emergency Room Visits 818,871 817,505 863,550

Revenues The Medical Center has seen growth in volumes over the last year, but a disproportionate share of the growth has been Medicaid and Medicare patients. One of the Medical Center’s largest challenges is the unwillingness of government payors to increase their payments commensurate with the increases in medical delivery costs. Growth in revenues will result from the impact of increasing volume and negotiated contracts that include rate increases. Rate Changes The Medical Center proposes an overall rate increase of 7.0 percent to 9.9 percent, which is commensurate with rate increases expected to be implemented in the hospital industry. Expenses Expenses from operations are projected to increase by $97.3 million from the 2012-13 projection. Expenses per CMI weighted adjusted discharges are projected to increase, going from $10,827 to $11,005 (excluding the Transitional Care Hospital). The 2012-13 projection includes a reduction to expenses from the vendor settlement. If the settlement was excluded, the cost per adjusted discharge would be $10,926. The 2013-14 expense per adjusted discharge includes $49 for implementation of the Centers of Excellence Strategic Initiative and $55 for ICD-10 conversion. Without the items noted above, the 2012-13 cost per adjusted discharge would be $10,926, and 2013-14 would be $10,901. The Medical Center anticipates that expense per CMI weighted 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. Previous increases in capital investment will result in additional depreciation expense of $9.4

million for 2013-14. Additionally, interest on capital investments is increasing by $3.1 million for 2013-14. The Medical Center’s 2013-14 fiscal plan accounts for these additional expenses while preserving its goal of providing high-quality and cost-effective health care, education, and research services.

The pay-for-performance pool has been established at $8 million, which includes the impact on benefit costs and is based on a 3.0 percent salary adjustment with an October implementation date. Other salary adjustments, such as market and compensation design adjustments, total $4 million, including the impact on benefit costs. Staffing The Medical Center’s 2013-14 budget has been benchmarked with comparable academic medical centers. FTEs are planned at 7,198, an increase of 300 FTEs from the current fiscal year projection of 6,898 FTEs. Increased staffing for the Centers of Excellence and new initiatives accounts for an increase of 209 FTEs. The remainder of the growth is to support facility expansion and core program growth for existing operations, including 23 additional FTEs at the Transitional Care Hospital. OPERATING PLAN The operating plan is presented on page 132 and includes actual results from 2011-12, the original 2012-13 budget, the 2012-13 projection, and the 2013-14 budget. The Medical Center’s 2013-14 fiscal plan projects an operating margin of $59.1 million or 4.6 percent. With non-operating activities contributing $13.3 million, net income is budgeted at $72.4 million. In comparison, it is projected that the 2012-13 operating margin will be $60.7 million or 5.2 percent. Non-operating activities in 2012-13 are expected to contribute $39.1 million, for a net income of $99.9 million.

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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. Also, 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:

Continuous improvement in quality to achieve recognition as a top decile provider of clinical care among academic health centers;

Continuation of the collaborative effort between the Medical Center and the School of Medicine faculty to realize cost efficiencies on a volume-adjusted basis in preparation for future reimbursement reductions included in the Affordable Care Act;

Continuation of efforts to better engage employees and enhance patient satisfaction;

Maintaining adequate working capital to foster growth in capacity, technology, and innovation to meet the needs of healthcare in Virginia;

Continued investment in the capital requirements of the Medical Center with the priorities of maintaining the current patient care infrastructure, planning for the opening of the Battle Building, Emergency Department Expansion, and construction of the Education Resource Center;

Maintain market-driven and performance-based salaries for employees;

Fund the Strategic Investment Pool to grow the tri-partite mission of clinical care, education, and research; and

Continue to develop innovative care delivery models in response to a changing reimbursement environment, including an Accountable Care Organization and expanded use of telemedicine to prevent readmissions.

The major risk factors that impact the ability to accomplish the fiscal plan include:

Changes in healthcare reform including state participation, maintaining the timeline for Medicaid expansion, and sequestration;

Resolution by CMS of the sustainable growth rate issue for physicians;

ICD 10 Conversion;

Participation in the 340b drug program;

Maintaining and growing a superior workforce in an environment where workforce shortages are projected;

Medicare payments at risk due to value based purchasing, electronic health record meaningful use, and hospital readmissions;

Cuts in Graduate Medical Education, Indirect Medical Education, and Facility Fees beyond sequestration;

Reduced Medicaid funding for Virginia’s Academic Health Center type one hospitals;

Marketplace changes create a highly competitive environment;

Centers of Excellence failure to achieve market share and volume goals;

Outreach objectives are not achieved; and

Changes in market dynamics from emerging Accountable Care Organizations and Clinically Integrated Networks

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University of Virginia Medical CenterOperating Financial Plan (dollars in thousands) 2013-14 2012-13 2012-13 2011-12 Budget Projected Original Budget Actual Operating Revenues Total Gross Charges $3,980,437 $3,472,994 $3,524,144 $3,213,055 Less Deductions: Indigent Care Deduction 274,982 231,093 227,688 207,515 Bad Debt 56,830 26,638 48,220 30,942 Contractual Deduction 2,414,468 2,081,114 2,087,488 1,858,767 Total Deductions 2,746,280 2,338,845 2,363,396 2,097,224 Net Patient Revenue 1,234,157 1,134,149 1,160,748 1,115,831 Miscellaneous Revenue 40,684 44,990 48,089 43,789 Total Operating Revenues 1,274,841 1,179,139 1,208,837 1,159,620 Operating Expenses Compensation and Benefits 573,893 528,853 540,662 491,862 Supplies, Utilities, and Other 536,352 496,552 513,207 510,067 Depreciation and Amortization 88,026 78,603 79,781 72,937 Interest Expense 17,484 14,397 16,622 7,103 Total Operating Expenses 1,215,755 1,118,405 1,150,272 1,081,969 Operating Income 59,086 60,734 58,565 77,651Operating Income Percent 4.6% 5.2% 4.9% 6.7% Total Other Gains and Losses 13,335 39,134 16,273 7,857 Revenues and Gains in Excess of Expenses 72,421 99,868 74,838 85,508:

Add back Depreciation and Amortization 88,026 78,603 79,781 72,937 Less Principal Payments on Debt (26,685) (23,003) (23,003) (21,050) Cash Available for Capital and Other 133,762 155,468 131,616 137,395

Capital Funded from Operations 106,692 58,860 96,384 63,399

Additions to Cash and Reserves $27,070 $96,608 $35,232 $73,996

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CAPITAL PLAN Funds available to meet capital requirements are derived from operating cash flows, funded depreciation reserves, philanthropy, and interest income. The Medical Center faces many challenges regarding capital funding as continued pressures on the operating margin affect cash flow, while demand for capital has increased significantly due to space requirements, technological advances, and aging of existing equipment. Subject to funds availability, the Medical Center management recommends $106.7 million be authorized for capital requirements, which includes $5.0 million for contingencies and $11.8 million for the Strategic Investment Pool.

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UNIVERSITY OF VIRGINIA ACADEMIC DIVISION AND MEDICAL CENTER ANNUAL RENOVATION AND INFRASTRUCTURE PROJECTS PLAN

Under Restructuring and the 2011 Acts of Assembly, Chapter 890, the Board has been delegated

the authority to approve all capital projects (acquisitions, capital leases, or new construction or renovation projects costing more than $2 million and impacting more than 5,000 gross square feet) funded with non-general funds. To facilitate the consideration of certain projects, the Board considers the Annual Renovation and Infrastructure Projects (ARIP) Plan each year.

With the Budget Summary presentation to the Board, the Academic Division and the Medical

Center will present a detailed list of renovation and infrastructure projects expected to cost between $2 million and $5 million, to be funded with non-general fund cash (no debt), and expected to be initiated within the next fiscal year. This shorter, annual approval process allows these smaller projects to be planned in a more appropriate timeline based on the nature of the project. For example, renovating a lab for a new scientist is a project for which the need will arise during recruitment and which requires completion before the scientist joins the faculty. The 2013-14 ARIP Plan is shown on the following page.

The Academic Division’s 2013-14 ARIP Plan incorporates projects totaling $18.1 million to

$22.5 million and addresses Gooch and Dillard Residence Hall balcony, air handling and fire detection improvements, JPJ Arena water intrusion, and several utility upgrade projects. All of the projects will be funded from maintenance cash reserves. The Medical Center’s 2013-14 ARIP Plan includes $6.7 million to $7.8 million in various renovation projects and infrastructure upgrades. All projects will be funded from Medical Center operating funds. The Medical Center is authorized to substitute a new project costing between $2 million and $5 million for a project included on the approved ARIP, provided that the total capital budget as approved by the Board is not exceeded and that a report is provided at each Board meeting listing the changes made to the original project list.

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2013-14 Annual Renovation and Infrastructure Projects Plan

School/ Unit

E&G Funds Low High

ACADEMIC DIVISION Housing Gooch: Balcony repairs, air handling and duct

replacement and installation of fire detection system.

67,492 gsf -$ 4,125,000$ -$ -$ 3,700,000$ 4,600,000$

Housing Dillard: Balcony repairs, air handling and duct replacement and installation of fire detection system.

64,983gsf -$ 4,100,000$ -$ 3,600,000$ 4,600,000$

Athletics JPJ Arena Water Intrusion -$ 3,000,000$ -$ -$ 2,700,000$ 3,300,000$

Facilities Mgt

Heating Distribution Upgrades 4,500,000$ -$ -$ -$ 4,000,000$ 5,000,000$

Facilities Mgt

General Utilities Distribution Upgrades 4,500,000$ -$ -$ -$ 4,100,000$ 5,000,000$

TOTAL ACADEMIC DIVISION 9,000,000$ 11,225,000$ -$ -$ 18,100,000$ 22,500,000$

MEDICAL CENTERMed Ctr Conversion of support space for Vascular

Operating Room 1,400 gsf -$ -$ 2,800,000$ -$ 2,500,000$ 3,000,000$

Med Ctr Renovation and Relocation of UVA Research Park (PRA Bldg) for support staff

80,000 gsf -$ -$ 3,200,000$ 1,500,000$ 4,200,000$ 4,800,000$

TOTAL MEDICAL CENTER -$ -$ 6,000,000$ 1,500,000$ 6,700,000$ 7,800,000$

Project Description Scope Other

Total Project Budget RangeAuxiliary Reserve

Medical Center

Operating

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APPROVAL OF THE 2013-14 OPERATING BUDGET AND ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE ACADEMIC DIVISION

RESOLVED, the 2013-14 Operating Budget and Annual Renovation and Infrastructure

Plan for the Academic Division is approved, as recommended by the President and the Chief Operating Officer. INTERIM POLICY ON APPROVAL OF STRATEGIC INVESTMENTS

WHEREAS, the University of Virginia has a need to meet potential one-time strategic investment priorities, prior to finalization of a long-term financial and of a strategic plan;

WHEREAS, operating savings have been generated which may provide funding to meet

such one-time needs; RESOLVED, the Board of Visitors delegates to the Finance Committee Chair and Vice

Chair the authority to approve any such proposed one-time strategic investment needs on an interim basis as presented by the President.

APPROVAL OF THE 2013-14 OPERATING BUDGET FOR THE UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE

RESOLVED, the 2013-14 Operating Budget for The University of Virginia’s College at

Wise is approved, as recommended by the President and the Chief Operating Officer. APPROVAL OF THE 2013-14 OPERATING AND CAPITAL BUDGETS AND ANNUAL RENOVATION AND INFRASTRUCTURE PLAN FOR THE UNIVERSITY OF VIRGINIA MEDICAL CENTER

RESOLVED, the 2013-14 Operating and Capital Budget and Annual Renovation and

Infrastructure Plan for the University of Virginia Medical Center is approved, as recommended by the President, the Chief Operating Officer, and the Medical Center Operating Board. APPROVAL OF PRATT FUND DISTRIBUTION FOR 2013-14

RESOLVED, the budget for the expenditure of funds from the Estate of John Lee Pratt is

approved to supplement appropriations made by the Commonwealth of Virginia for the School of Medicine and the Departments of Biology, Chemistry, Mathematics, and Physics in the College of Arts and Sciences. Departmental allocations, not to exceed $7,240,000 for 2013-14, are suggested by the department chairs and recommended by the dean of each school; the distribution of each allotment will be authorized by the Executive Vice President and Provost. To the extent the annual income from the endowment is not adequate to meet the recommended distribution, the principal of the endowment will be disinvested to provide funds for the approved budgets.

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EXECUTIVE COMMITTEE MAY 20, 2013

EXECUTIVE COMMITTEE

Monday, May 20, 2013

2:45-3:00 p.m. Board Room, The Rotunda

Committee Members: Helen E. Dragas, Chair George Keith Martin Marvin W. Gilliam Jr. Victoria D. Harker John L. Nau III Timothy B. Robertson

AGENDA

• ACTION ITEM

o Board of Visitors Manual Changes

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BOARD OF VISITORS AGENDA ITEM SUMMARY BOARD MEETING: May 20, 2013 COMMITTEE: Executive AGENDA ITEM: Board Manual Revisions

BACKGROUND: According to the Manual of the Board of Visitors of the University of Virginia (the Manual), the Executive Committee must review any proposed amendment to the Manual and submit the committee members’ views on the amendment to the Board prior to a vote by the Board. The Manual amendments are proposed to conform to new legislation that will go into effect July 1, 2013, and to make other changes. A redlined version of the amended Manual is attached. ACTION REQUIRED: Review by the Executive Committee and approval by the Board of Visitors REVISIONS TO THE MANUAL OF THE BOARD OF VISITORS OF THE UNIVERSITY OF VIRGINIA

RESOLVED, the Board of Visitors authorizes amendments to

the Manual of the Board of Visitors of the University of Virginia, 2004 edition, as amended through November 9, 2012 (the Manual), to conform the provisions of the Manual to the Code of Virginia, and to make other changes as reflected in the attached document dated May 20, 2013.

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ATTACHMENT

RED-LINED VERSION OF BOV MANUAL MAY 20, 2013

FOR EXECUTIVE COMMITTEE – MAY 20, 2013

MANUAL OF



2004

[Revised to reflect changes through November 9, 2012]

MANUAL

OF THE BOARD

OF VISITORS

OF THE

UNIVERSITY

OF VIRGINIA

2004

University of Virginia Press Charlottesville and London

First issued by the University Press of Virginia in 1967 New edition 2005

Printed in the United States of America

TABLE OF CONTENTS

RECTORS OF THE UNIVERSITY OF VIRGINIA i PRESIDENTS OF THE UNIVERSITY OF VIRGINIA ii PREFACE iii 1 STATEMENT OF INSTITUTIONAL PURPOSE 1 2 THE BOARD OF VISITORS 2 2.1 Corporate Name and Governing Body 2.2 Composition 2.21 Student Nonvoting Member 2.22 Visitors Emeriti 2.3 Meetings 2.31 The Annual Meeting 2.32 Regular Meetings 2.33 Special Meetings 2.34 Notice of Meetings 2.35 Quorum 2.36 Telephonic or Video Participation 2.37 Dockets 2.38 Conduct of Business 2.4 Powers and Duties 3 THE COMMITTEE SYSTEM 6 3.1 The Executive Committee 3.2 Standing Committees 3.21 Finance Committee 3.22 Buildings and Grounds Committee 3.23 Student Affairs and Athletics Committee 3.24 Educational Policy Committee 3.25 Audit and Compliance Committee 3.26 Advancement and Communications Committee 3.27 The Committee on The University of Virginia’s College at Wise 3.28 The Medical Center Operating Board 3.3 Special Committees 4 OFFICERS OF THE BOARD 9 4.1 The Rector and Vice Rector of the University 4.11 Terms of Office and Election 4.12 Powers and Duties 4.13 Vacancies 4.14 Rector pro Tempore 4.2 The President of the University 4.21 Election 4.22 Powers and Duties 4.3

4.4 Powers and Duties of the Chief Operating Officer Powers and Duties of the Provost

4.5 Secretary to the Board of Visitors 4.51 Powers and Duties 4.6 General Counsel of the University 4.61 Election 4.62 Powers and Duties 5 MISCELLANEOUS PROVISIONS 13 5.1 Appeals to the Board 5.2 Retirement 5.3 Communications to the Board 5.4 Minutes of Board Meetings 5.41 Clerk of the Board 5.5 Execution of Instruments 5.6 Assignment of Securities 5.7 The Manual 5.8 Distribution of the Manual 5.9 Amendments to the Manual 5.10 Effective Date of the Manual

Appendixes

A THOMAS JEFFERSON ON HIGHER EDUCATION: DOCUMENTS RELATIVE TO THE FOUNDING OF THE UNIVERSITY OF VIRGINIA

1 INTRODUCTION, BY JOHN COOK WYLLIE 15


3 PROCEEDINGS AND REPORT OF THE COMMISSIONERS FOR THE UNIVERSITY OF VIRGINIA 20


B THE BOARD OF VISITORS FROM 1819 THROUGH 2011 38

C PERTINENT LEGAL PROVISIONS RELATING TO THE UNIVERSITY OF VIRGINIA EXCERPTED FROM THE CODE OF VIRGINIA, 1950, AS AMENDED THROUGH THE REGULAR SESSION OF THE 2010 GENERAL ASSEMBLY 48

RECTORS OF THE UNIVERSITY OF VIRGINIA

Thomas Jefferson 1819–1826 James Madison 1826–1834 Joseph C. Cabell 1834–1836 Chapman Johnson 1836–1845 Joseph C. Cabell 1845–1856 Andrew Stevenson 1856–1857 Thomas J. Randolph 1857–1864 T. L. Preston 1864–1865 Alexander Rives 1865–1866 B. Johnson Barbour 1866–1872 R. G. H. Kean 1872–1876 Alex. H. H. Stuart 1876–1882 Wyatt M. Elliott 1882–1884 W. Roane Ruffin 1884–1886 Alex. H. H. Stuart 1886–1887 John L. Marye 1887–1890 W. C. N. Randolph 1890–1897 Armistead C. Gordon 1897–1898 Charles P. Jones 1898–1906 Armistead C. Gordon 1906–1918 R. Tate Irvine 1918–1920 John Stewart Bryan 1920–1922 C. Harding Walker 1922–1930 Frederic W. Scott 1930–1939 Robert Gray Williams 1939–1946 Edward R. Stettinius Jr. 1946–1949 Barron Foster Black 1949–1956 Frank Talbott Jr. 1956–1960 Albert Vickers Bryan 1960–1964 Charles Rogers Fenwick 1964–1966 Frank W. Rogers 1966–1970 Joseph H. McConnell 1970–1976 William L. Zimmer III 1976–1980 D. French Slaughter Jr. 1980–1982 Frederick G. Pollard 1982–1987 Joshua P. Darden Jr. 1987–1990 Edward Elliott Elson 1990–1992 Hovey S. Dabney 1992–1998 John P. Ackerly III 1998–2003 Gordon F. Rainey Jr. 2003–2005 Thomas F. Farrell II 2005–2007 W. Heywood Fralin 2007–2009 John O. Wynne 2009–2011 Helen E. Dragas 2011– Formatted: Left

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2013 .

PRESIDENTS OF THE UNIVERSITY OF VIRGINIA

Edwin Anderson Alderman 1904–1931 John Lloyd Newcomb, Acting President 1931–1933 John Lloyd Newcomb 1933–1947 Colgate Whitehead Darden Jr. 1947–1959 Edgar Finley Shannon Jr. 1959–1974 Frank Loucks Hereford Jr. 1974–1985 Robert Marchant O’Neil 1985–1990 John Thomas Casteen III 1990–2010

Teresa Ann Sullivan 2010–

Formatted: Centered, Space After: 0 pt, Linespacing: single

ii

PREFACE

THE UNIVERSITY of Virginia is an educational institution of the Commonwealth of Virginia. The duties and powers of its governing body, the Board of Visitors, are set forth in general terms in the statutes of the State, of which those most pertinent are printed in an appendix to this Manual. The portions of the Code of Virginia that treat the general organization and governance of the University may be found in Va. Code Sections 23-62 et seq. The Board itself, however, largely determines its internal organization, its procedures of operation, and the responsibilities of the administrative officers selected by it to carry out its directives of policy and program.

On 12 September 1947 the Board adopted a Manual for the purpose of setting forth its powers and duties and those of the principal administrative officers in order to “clarify the manner in which the Board and such administrative officers shall function.” This Manual was replaced in 1966 by a completely revised edition that, with several amendments, served as the controlling statement of the Board’s procedure and practice until a revised Manual was adopted by the Board on 30 May 1975. This present edition of the Manual includes a revised Statement of Purpose adopted by the Board on 31 May 1985, as well as amendments approved since the 1975 edition and the editions of 1985, 1991, and 1998. These amendments reflect changes in how the Board organizes itself and conducts its business, as well as changes in the administrative structure of the University.

It is hoped that the Manual will give to interested persons, and to new members of the Board in particular, an understanding of the manner in which the Board functions and of its relation to the administrative officers. It cannot, of course, convey an adequate impression of the spirit and traditions of the University, which so often guide the decisions of the Board. Nor can it adequately express the resolve that at all times has animated the members of the Board—to realize Mr. Jefferson’s high aspirations for the institution.

The revisions to the Manual in 1966 were done by Mr. Lawrence Lewis Jr. of the Board and by Mr.

Weldon Cooper as Secretary to the Board. Mr. Lewis was chairman of the Board committee that compiled the 1975 edition; Mr. Robert P. Buford and Mr. W. Wright Harrison of the Board were members of the committee, as well as Mr. Raymond C. Bice Jr., who was the Board Secretary. Mr. Charles K. Woltz of the Law School faculty acted as consultant to both the 1966 and 1975 committees. Edgar F. Shannon Jr. was President of the University at the time of the 1966 revision, and Frank L. Hereford Jr. was President in 1975.

Further revisions were undertaken in 1991, during the rectorship of Edward Elliott Elson, and in 1997,

during the rectorship of Hovey S. Dabney. John T. Casteen III was President of the University in both instances. The 1991 revisions were directed by the Executive Committee of the Board of Visitors under the chairmanship of Mr. Elson. The 1997 revisions were done by a special committee of the Board appointed by Mr. Dabney and under the chairmanship of Mr. Champ Clark. Modifications to these revisions were made in 1998 under the supervision of Mr. Clark and at the beginning of the rectorship of John P. Ackerly III; the Board Secretary, Alexander G. Gilliam Jr., assisted in the 1997 and 1998 revisions.

Work on the present edition of the Manual began in the fall of 2003 under the rectorship of Gordon F. Rainey Jr., who asked Mr. Don R. Pippin of the Board and Mr. Gilliam to undertake the task. This edition was approved by the Board of Visitors on 31 July 2004. John T. Casteen III was President of the University.

iii

In the spring of 2011, the online version of the Manual was updated to include all amendments approved

by the Board of Visitors since the publication of the 2004 edition. Lists of Board Members, Presidents, Rectors, Student Members, and Secretaries were updated. The Code of Virginia provisions relating to the University were also updated and additions made. Further changes were made in February 2012 adding the Provost as an officer of the Board and updating the list of Board of Visitors. This work was undertaken by Susan G. Harris, Secretary to the Board, and Teresa A. Sullivan was President of the University.

In November 2012, additional changes were made to the online version of the Manual. These revisions were recommended to the executive committee by a special committee on governance and engagement formed by Ms. Helen E. Dragas, Rector, under the chairmanship of Mr. George Keith Martin and Mr. John L. Nau III, and affirmed by the Board of Visitors at a regular meeting held on 9 November 2012. Ms. Harris assisted in the revisions.

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MANUAL OF



2004

1

STATEMENT OF INSTITUTIONAL PURPOSE

ON 19 MARCH 1985, with the concurrence of the President, the Faculty Senate of the University of Virginia adopted a new Statement of Institutional Purpose to replace the statement that had been in effect since 17 May 1974. This statement subsequently was recommended by the President to the Board of Visitors, who on 31 May 1985 adopted the Statement of Institutional Purpose reading as follows:

The central purpose of the University of Virginia is to enrich the mind by stimulating and sustaining a spirit of free inquiry directed to understanding the nature of the universe and the role of mankind in it. Activities designed to quicken, discipline, and enlarge the intellectual and creative capacities, as well as the aesthetic and ethical awareness, of the members of the University and to record, preserve, and disseminate the results of intellectual discovery and creative endeavor serve this purpose. In fulfilling it, the University places the highest priority on achieving eminence as a center of higher learning.

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THE BOARD OF VISITORS THE GOVERNING body of the University of Virginia is the Board of Visitors, which by statute is made responsible for seeing to the effective government of the University at Charlottesville and all other educational institutions under the governance of the Board of Visitors. SECTION 2.1 CORPORATE NAME AND GOVERNING BODY—The University is a public corporation that by statute bears the name of “The Rector and Visitors of the University of Virginia.” By statute also the governing body of the corporation, which exercises all the powers vested in The Rector and Visitors of the University of Virginia, is styled the “Board of Visitors” and shall hereafter be referred to as such or as “Board” in this Manual. SECTION 2.2 COMPOSITION—The Board of Visitors is composed of seventeen members appointed by the Governor, subject to confirmation by the Senate and the House of Delegates of Virginia, for terms of four years. Members may be reappointed for one additional four-year term. At least twelve of the seventeen members must be from the Commonwealth at large, at least twelve shall be alumni or alumnae of the University of Virginia, and at least one shall be a physician with administrative and clinical experience in an academic medical center.

The statute provides that for each vacancy on the Board of Visitors, the Alumni Association of the

University of Virginia shall propose three names to the Governor for possible appointment. Such proposals, however, are advisory only, and the Governor may appoint persons other than those recommended by the Alumni Association. A vacancy on the Board is filled by the Governor for the unexpired term, subject, of course, to confirmation by the Senate and the House of Delegates. A person filling an unexpired term may be reappointed by the Governor for two additional four-year terms. SECTION 2.21 STUDENT NONVOTING MEMBER—At the first regular meeting of the second semester of the academic session each year, on recommendation of the Executive Committee, the Board of Visitors may elect for a term of one year, a full-time student at the University of Virginia as a nonvoting member of the Board of Visitors, in addition to those members appointed by the Governor and referred to in Section 2.2 above. Such student may attend and participate in a nonvoting capacity in all deliberations and meetings, in Open and Executive Session, of the standing and special committees of the Board as well as meetings of the Board of Visitors itself. SECTION 2.22 VISITORS EMERITI—In recognition of the invaluable service they render to the University during their terms of office and the informed counsel they may continue to provide after their terms expire, former Members of the Board shall be designated Visitors Emeriti. SECTION 2.3 MEETINGS—Meetings of the Board are of three kinds: the Annual Meeting, regular meetings, and special meetings. Discussions and actions on any topic not specifically exempted by the Virginia Freedom of Information Act shall be held in an open meeting, which shall be open to the public. Any official action taken in Executive (closed) Session shall be approved in an open meeting before it can have any force or effect.

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SECTION 2.31 THE ANNUAL MEETING—The one meeting each year required by statute is known as the Annual Meeting and is required to be held at the University at Charlottesville. At this meeting the Board elects an Executive Committee, and reviews and decides on such other matters as may come before it. The Rector announces committee assignments and the committee chairs at the Annual Meeting. The date for the Annual Meeting is prescribed by the Board at the Annual Meeting in the preceding calendar year. On the recommendation of the Rector and the President, the date and time of the Annual Meeting may be changed by the Executive Committee. SECTION 2.32 REGULAR MEETINGS—There shall be such other regular meetings of the Board of Visitors each year as the Board may determine. These meetings shall be held on such dates and at such places for the succeeding year as the Board shall determine no later than the Annual Meeting each year. The time, date, and place of a regular meeting may be changed by a quorum of the Board of Visitors or by the Executive Committee. SECTION 2.33 SPECIAL MEETINGS—Special meetings of the Board may be called by the Rector or by any three Visitors at such dates, times, and places as may be specified in the call for the meeting. No matter may be considered at any special meeting that was not included in the call of that meeting except by a two-thirds vote of the Visitors present at the meeting. SECTION 2.34 NOTICE OF MEETINGS—Due notice in writing of the Annual Meeting and all regular meetings and of any changes in the dates, times, or places of a regular meeting shall be given by the Secretary of the Board of Visitors. Such written notice shall be sent at least ten days prior to the meeting. Written notice of all special meetings shall be sent by the Secretary at least five days in advance of the meeting. All notices of a special meeting shall indicate the item or items of business to be considered. Public notice of meetings shall comply with the requirements of the Virginia Freedom of Information Act. SECTION 2.35 QUORUM—A quorum for the conduct of business by the full Board of Visitors shall consist of five members of the Board (as required by statute) except in those instances where other statutory provisions, as, for example, in the consideration of revenue bond issues, may require a larger number for the transaction of particular items of business. A quorum for the Executive Committee and all standing and special committees of the Board of Visitors shall consist of one-third of the appointed members of the committee, except that in no case shall the number be fewer than three members. The quorum must be physically assembled at one primary or central meeting location. SECTION 2.36 TELEPHONIC OR VIDEO PARTICIPATION—Telephonic or video meetings of Board committees, including those held in Executive (closed) Session, may be held as long as proper and timely public notification of the meeting has been given and there is a quorum of the committee physically assembled at its primary or other location. Meetings held in Open Session must be open to the public. Arrangements for telephonic or video meetings must be coordinated with the Secretary. and shall comply with the requirements of the Virginia Freedom of Information Act. SECTION 2.37 DOCKETS—For the Annual Meeting and each regular meeting, the Secretary shall prepare, under the supervision of the Rector and the President, a docket comprising such matters as the Board, the Rector, the President, and the chairman of each standing committee shall refer for consideration. This docket shall include all the agenda items to be considered by the Board and its committees at such meetings that are known by the Rector, the President, and the Secretary at the time the docket is prepared. After receiving the

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Rector’s approval, a copy of this docket, to be called the Regular Docket, shall be mailed to each member of the Board at least ten days prior to the meeting of the Board. Consideration of matters not appearing on the Regular Docket shall require the consent of two-thirds of the Visitors present. The notice of a special meeting containing a list of the items to be considered shall take the place of the Regular Docket at a special meeting. SECTION 2.38 CONDUCT OF BUSINESS—The principles of procedure prescribed in Roberts’ Rules of Order shall provide guidance for the conduct of meetings. The Board strives to be transparent in its operations, and operates entirely openly to the extent required by law. SECTION 2.4 POWERS AND DUTIES—The powers and duties conferred upon the Board are to be exercised for the purpose of carrying into effect the Statement of Institutional Purpose contained in Chapter 1. The major powers and duties are

1 the preservation of the ideals and traditions of the University and particularly encouragement of the maintenance of the Honor System by the student body;

2 the establishment of general education policy; 3 the authorization of the establishment of any additional center, branch, college, or school and, when

necessary, the presentation of such action to the State Council of Higher Education, for its recommendation, and to the General Assembly, for its approval;

4 the authorization of the creation or discontinuation of degrees; 5 the election of a Rector, Vice Rector, President, Chief Operating Officer, Provost, and Secretary and

the election of salaried members of the faculty, except for those faculty members designated by the President during the period between meetings of the Board of Visitors, whose elections may be formally ratified by the Board at its next regular meeting (the foregoing, however, is subject to the provisions of Section 4.22);

6 the determination of the salary ranges for all faculty ranks and the establishment of insurance, retirement, and other programs for the faculty’s benefit;

7 the establishment or discontinuation of any faculty rank; 8 the approval of promotions of faculty members; 9 the establishment of named chairs; 10 the regulation of the government and discipline of students and the renting of rooms and

dormitories; 11 the approval of general policy governing student scholarships and loans; 12 the establishment of scholarships by the remission of tuition within guidelines established by the

State for undergraduate students of character and ability in need of financial assistance; 13 the fixing of tuition charges, other fees, and room rentals; 14 the issuance of revenue bonds to finance projects required by or convenient for the purposes of the

students under its control; 15 the approval of regulations relating to the use of automobiles by students; 16 the care and preservation of all property belonging to the University; 17 the purchase of real estate; 18 the sale, with the approval of the Governor, of any real estate acquired since 1 January 1900 and the

sale, with the approval of the General Assembly, of real estate acquired by purchase prior thereto; 19 the granting of easements for roads, streets, sewers, water lines, utility lines, or other purposes; 20 the exercise of the power of eminent domain; 21 provision for the submission of such reports and budget requests as may be required by the ap-

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propriate agency of the State Government; 22 the approval of the annual budget; 23 the formulation and periodic revision of long-range plans; 24 the election, on nomination of and with the concurrence of the President, of the Vice Presidents of the

University and the chief local administrative officer of The University of Virginia’s College at Wise, this officer having the title of Chancellor, all of whom are directly responsible to the President; and

25 the exercise of other powers conferred on corporations by the provisions of Title 13.1 of the Code of Virginia.

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THE COMMITTEE SYSTEM THE COMMITTEE system of the Board shall be composed of the Executive Committee, standing committees, and special committees. The Secretary of the Board shall serve as the secretary of each committee, keep the minutes of the meetings of the committees, and perform such other duties as the committees may require. The President shall make provision for such additional consultative services as may be requested by a committee chairman. In addition to the appointed members, the Rector shall be an ex officio member of all standing and special committees. SECTION 3.1 THE EXECUTIVE COMMITTEE —At each Annual Meeting the Board shall elect from among its membership an Executive Committee composed of six members. These six members shall consist of the Rector, who shall serve as chair, the Vice Rector, and four Visitors to be elected by the Board. Nominations for these four positions on the Executive Committee may be made by any Visitor, and if there are more than four nominations, a vote shall be taken, and the results shall be announced jointly by the Rector and the Secretary. Any vacancy on the Executive Committee shall be filled for the unexpired term at the next regular meeting of the Board and by vote if there is more than one nomination.

The Executive Committee shall meet upon the call of the Rector. It shall consider all matters referred to it by the Rector, the Vice Rector, or the President and shall, in the interim between meetings of the Board, be vested with the powers and authority of the full Board and shall take such action on all matters that may be referred to it as in its judgment is required. All such actions taken by the Executive Committee in the interim between meetings of the Board shall require a two-thirds vote of the whole number of committee members, and their actions shall be reported to the Board at the next regular meeting and shall, if confirmation is required, be confirmed and approved by the Board at that time.

In addition to the above, the Executive Committee shall organize the working processes of the Board and recommend best practices for governance to the Board. More specifically, the Executive Committee shall:

1. Develop and recommend to the Board a statement of governance setting out the Board’s role;

2. Periodically review the Board’s bylaws and recommend amendments; 3. Provide advice to the Board on committee structure, appointments and meetings; 4. Develop an orientation and continuing education process for Visitors that includes training

on the Virginia Freedom of Information Act; 5. Create, monitor, oversee, and review compliance with a code of ethics for Visitors; and 6. Develop a set of qualifications and competencies for membership on the Board for approval

by the Board and recommendation to the Governor.

SECTION 3.2 STANDING COMMITTEES —The standing committees of the Board of Visitors shall consist of the Finance Committee, Buildings and Grounds Committee, Student Affairs and Athletics Committee, Educational Policy Committee, Advancement and Communications Committee, Audit and Compliance Committee, Committee on The University of Virginia’s College at Wise, and the Medical Center Operating Board. The number to be appointed to each standing committee shall be determined by

Formatted: Indent: First line: 0.19"

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the Rector at the time of appointment. However, no committee shall consist of fewer than three members.

The standing committees shall be appointed by the Rector at the Annual Meeting of each year, and at

the time of appointment the Rector shall designate the chair of each committee. A vacancy on any committee shall be filled by the Rector for the unexpired term, and the Rector shall have the power to change the membership of any standing committee at any time. Each standing committee shall meet at the call of the chair, the Rector, the Vice Rector, or the President and shall consider such matters as may be referred to it by these officers or by members of the committee.

The Secretary shall prepare a docket for each committee meeting and shall attend the meeting. In addition to the duties of the standing committees as listed below, each committee shall consider

such other matters as may be referred to it by the Board, the Rector, the Vice Rector, the President, or the chair and shall make its report and recommendations as required to the Board, to the President, and, upon the request of the Rector, to the Executive Committee. No standing committee has power or authority to commit the Board to any policy or action unless specifically granted such power or authority by the Board. In such cases, a report of final action by any committee shall be made at the next regular meeting of the Board and, if confirmation is required, shall be confirmed and approved by the Board at that time.

On motion of any member, any grant to a committee of power or authority to commit the Board shall

be reviewed by the Board, at which time it may be modified or rescinded by majority vote of the members present without complying with the requirements for amending this Manual. SECTION 3.21 FINANCE COMMITTEE—The Finance Committee shall be responsible in all matters relating to the University’s financial affairs and business operations. It shall review and approve the annual budget and the setting of tuition rates, student fees, and other student charges for recommendation to the Board. On behalf of the Board, it shall approve the investment of endowment and other funds, the purchase of real and personal property, and the making of loans to faculty members, and it shall make progress reports to the Board on its actions.

The committee shall maintain liaison with the University of Virginia Investment Management Company,

a nonprofit, nonstock corporation organized under Virginia law to provide investment and investment management and related services to the University of Virginia, and shall monitor and review periodically the performance of the Company. SECTION 3.22 BUILDINGS AND GROUNDS COMMITTEE—The Buildings and Grounds Committee shall have responsibility in all matters relating to the physical plant and equipment. It shall exercise oversight over the care, maintenance, and security of the University’s buildings and grounds; the selection of architects and engineers and the construction and naming of new buildings; the care and preservation of all furnishings and equipment; and such other matters relating to the buildings and grounds of the University as may come before it. On behalf of the Board, it shall approve the location and design of new buildings and shall make progress reports to the Board on its actions. SECTION 3.23 STUDENT AFFAIRS AND ATHLETICS COMMITTEE—The Student Affairs and Athletics Committee shall be responsible in all matters relating to nonacademic student affairs and to

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athletics. It shall exercise oversight over student conduct, residential and social life, extracurricular activities, food services, health, and such other matters relating to student affairs as may be brought to its attention. The committee shall have oversight over athletic policy and programs, both intramural and intercollegiate. SECTION 3.24 EDUCATIONAL POLICY COMMITTEE—The Educational Policy Committee shall have responsibility in all matters relating to educational policies and programs, except for those matters subject to the oversight of the Medical Center Operating Board. The Educational Policy Committee shall exercise oversight over the proposal of new degrees and educational programs by the President, the conditions affecting the recruitment and retention of faculty members, the adequacy of instructional facilities, and such other matters relating to the educational policies and programs as may be brought before it by the President or Provost or referred to it by the Board. SECTION 3.25 AUDIT AND COMPLIANCE COMMITTEE—The Audit and Compliance Committee shall be responsible for all matters relating to financial accounting and reporting. The Audit and Compliance Committee shall have direct access to internal and external auditors to assess performance, the scope of audit activities, and the adequacy of the system of internal accounting controls. SECTION 3.26 ADVANCEMENT AND COMMUNICATIONS COMMITTEE— The Advancement and Communications Committee shall have responsibility in all matters pertaining to University development, alumni affairs, and public communications. This responsibility shall include the oversight of University capital campaigns and all other programs that promote private donations to and alumni support of the University. As part of this responsibility, the committee’s oversight will include the University-related foundations and their activities to raise funds on behalf of the University. SECTION 3.27 THE COMMITTEE ON THE UNIVERSITY OF VIRGINIA’S COLLEGE AT WISE—The Committee on The University of Virginia’s College at Wise is charged with the oversight of the College and the advancement of its mission and with bringing its needs and concerns to the attention of the Board of Visitors. The committee will assist the Chancellor in carrying out the Chancellor’s duties and will further the goals of The University of Virginia’s College at Wise. SECTION 3.28 THE MEDICAL CENTER OPERATING BOARD— The Medical Center Operating Board shall be the governing board of the Medical Center and the Transitional Care Hospital for Joint Commission on Accreditation of Hospital Organization purposes, responsible to oversee and direct the operations of the Medical Center and the Transitional Care Hospital as delegated by the Board of Visitors.

The Rector shall serve as a voting member, and he shall appoint four other members of the Board of

Visitors, including the chair, to serve as voting members of the Medical Center Operating Board; one of these members shall be the chair of the Finance Committee and one of these members shall be a physician with administrative and clinical experience in an academic medical center. The Board of Visitors may appoint no more than six public non-voting members of the Medical Center Operating Board, to serve for initial terms not to exceed four years. The President of the University, the Executive Vice President and Provost of the University, the Executive Vice President and Chief Operating Officer of the University, the Vice President and Chief Executive Officer of the Medical Center, the Vice President and Dean of the School of Medicine, the Dean of the School of Nursing, and the President of the Clinical Staff of the Medical Center shall serve as non-voting advisory members. In addition to the six non-voting public

Formatted: CM8, Justified

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members, the Board of Visitors may appoint up to four additional public members on a temporary basis, for terms to begin no later than July 15, 2011 and end on December 31, 2012.

SECTION 3.3 SPECIAL COMMITTEES—Special committees may be constituted at any time by the Rector. The Rector shall determine the membership and the number of members to be appointed to special committees, which shall have a life of not to exceed one year unless renewed for a specified period by the Rector and the Board at the Annual Meeting.

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The Officers of the Board of Visitors shall consist of the Rector of the University of Virginia, the Vice Rector, the President of the University, the Chief Operating Officer of the University, the Provost of the University, the General Counsel of the University, and the Secretary to the Board of Visitors. SECTION 4.1 THE RECTOR AND VICE RECTOR OF THE UNIVERSITY —The Rector of the University is especially charged with the duty of maintaining that level of interest and activity among the members of the Board of Visitors as will best contribute to the determination of broad policies, wise planning for the future, intelligent and considerate observance of the rights of the faculty and the student body, including the care and preservation of the Honor System, and maintenance of the independence of the Board from outside influences harmful to the interests of the students and faculty of the University. The Vice Rector shall act in the Rector’s stead in fulfilling these obligations. SECTION 4.11 TERMS OF OFFICE AND ELECTION — The Rector and Vice Rector shall serve terms of two years, commencing 1 July of the first year and ending 30 June of the last year. At the conclusion of the Rector’s term of office, the Vice Rector shall succeed the Rector and serve for two years in that office.

At its regular meeting closest to 30 June every two years, the Board shall elect a Vice Rector from among

its members to succeed the Rector, as hereinabove provided. At the election meeting, the election shall be by majority vote of the members present following nominations, and the Secretary shall serve as the presiding officer until an election is accomplished unless the Board decides to appoint another presiding officer. The Secretary shall count the votes and announce the election of the Vice Rector. SECTION 4.12 POWERS AND DUTIES —The Rector shall be the presiding officer of the Board of Visitors at all of its meetings; in the Rector’s absence, the Vice Rector shall serve in that capacity. The Rector shall have the power, unless otherwise directed by the Board, to fix the order of business, appoint all standing and special committees (except the Executive Committee), and require the proper preservation of a record of the Board’s proceedings by the Secretary., and, notwithstanding anything contained herein that may be to the contrary, determine who may be present during closed sessions (other than the duly appointed and voting members of the Board) as will reasonably aid the Board’s consideration. Without diminishing the right of individual Visitors to publicly express their personal views, the Rector, unless otherwise determined by the Board or the Rector, shall act as spokesman for the Board of Visitors. The Rector and Vice Rector shall perform such additional duties as may be imposed on their offices by statute or by the direction of the Board.

Whenever the office of the President becomes vacant or a vacancy is impending, the Rector shall appoint

a Special Committee on the Nomination of a President from among the membership of the Board to seek and recommend to the Board a person to fill the vacancy.

This special committee shall be under the chairmanship of the Rector, and the committee shall consist of

no fewer than five members. SECTION 4.13 VACANCIES—Vacancies in the offices of Rector and Vice Rector shall be filled by the

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Board for the unexpired terms, following the procedure set forth in Section 4.11. If the cause of the vacancies is the expiration of the Rector’s or the Vice Rector’s terms as members of the Board, the vacancies shall be filled at the first meeting called for that purpose, at which meeting a quorum shall consist of eleven Visitors. SECTION 4.14 RECTOR PRO TEMPORE —In the absence of the Rector and Vice Rector from any meeting or in the event of their disability or of vacancy in office, the chair of the Finance Committee shall serve as Rector pro tempore. If the chair of the Finance Committee is absent or is unable to serve, the Board shall elect a Rector pro tempore for that meeting. SECTION 4.2 THE PRESIDENT OF THE UNIVERSITY—The President of the University shall be the chief executive officer of the University. The President shall be a member of the General Faculty and of the faculty of the College and of each of the schools of the University. The President also shall be the chief executive officer of The University of Virginia’s College at Wise. SECTION 4.21 ELECTION, APPOINTMENT, AND REMOVAL—The President shall be elected by the Board of Visitors. Appointment, removal, requested resignation, or amendment of the contract or terms of employment of the President may be accomplished only by vote of a majority (or, by statute, two-thirds in the case of removal) of the whole number of Visitors at a regular meeting, or special meeting called for this purpose. The President shall attend all meetings of the Board and shall have notice of and the privilege of attending all meetings of its committees. SECTION 4.22 POWERS AND DUTIES—As the chief executive officer of the University, the President shall have the following powers and duties:

1 The President shall have responsibility for the operation of the University in conformity with the purposes and policies determined by the Board;. The President shall strive to be transparent in all activities and shall operate entirely openly to the extent required by law;

2 The President shall act as adviser to the Board and shall have responsibility for recommending to it for consideration those policies and programs which in the opinion of the President will best promote the interests of the University;

3 The President shall recommend to the Board long-range educational goals and programs and the new degrees that may be best suited to attain those goals and programs;

4 The President shall have the power to establish and modify as he or she deems necessary the internal administrative structure of the University and shall appoint or provide for the appointment of all administrative officers except for the Vice Presidents and the Chancellor of The University of Virginia’s College at Wise, making a report of his or her actions thereon to the Board at the next regular meeting;

5 The President shall serve as President of the Faculty Senate of the University and of the Faculty Senate of The University of Virginia’s College at Wise;

6 The President shall have primary responsibility for the establishment and maintenance of proper relationships with the alumni;

7 The President shall at all times maintain cordial relationships with the students, guarding and protecting their best interests;

8 The President shall use particular efforts to preserve and foster the Honor System; 9 The President shall be responsible for the discipline of students with the power to impose

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appropriate penalties including expulsion; 10 The President shall submit to the Board each year an annual budget for the operation of the

University for the following fiscal year and shall prepare and submit to the Governor a biennial budget request as required by law or regulation;

11 The President shall promote the development of the endowment funds of the University and shall be authorized to accept any gift or grant subject to the approval of the Governor as required, making a report to the Board of such gifts or grants; and

12 The President shall perform such other duties as may be required by the Board. SECTION 4.3 POWERS AND DUTIES OF THE CHIEF OPERATING OFFICER—The Chief Operating Officer, who is elected by the Board of Visitors on the nomination of the President of the University, is an Officer of the Board. The Chief Operating Officer shall have supervision of the financial affairs of all colleges, schools, and divisions of the University and shall advise the Board of Visitors and the President, under whose immediate direction he or she shall be, on all financial matters affecting the University. Subject to the direction of the Board and the President, the Chief Operating Officer shall prescribe accounting procedures and practices for the disbursement of all funds, promulgate management policies and procedures for auxiliary services and operations, and institute budgetary policies and controls that will assure the faithful execution of the budgets. The Chief Operating Officer shall see that no expenditures are made without proper authorization. In addition, he or she shall advise the Board of Visitors and its committees on all matters relating to the duties of his or her office. The Chief Operating Officer shall perform such other duties as may be assigned to him or her by the Board or the President. SECTION 4.4 POWERS AND DUTIES OF THE PROVOST— The Provost, who is elected by the Board of Visitors on the nomination of the President, shall serve as the chief academic officer of the University reporting to the President, and shall have supervision over the academic affairs of the colleges, schools, and divisions of the University. The Provost shall advise the Board of Visitors and the President on all academic matters, including recommending strategic direction for the teaching and research missions of the University. The Provost shall serve as the chief personnel officer for academic faculty, and with the concurrence of the President, shall recommend to the Board of Visitors the election and initial compensation of salaried members of the faculty holding professorial rank or named chairs, promotions of faculty members to the ranks of associate professor, full professor, and professor emeritus, and the removal of faculty members for cause. The Provost shall appoint instructors at the first salary step and shall reappoint lecturers after an initial election by the Board. The Provost shall be authorized, after consultation with the dean, department head, and other affected administrative officers to suspend any faculty member at any time for proper cause. The Provost shall share administrative oversight of the University’s budget, working closely with the President and the Chief Operating Officer on the allocation of resources. The Provost shall advise the Board of Visitors and its committees on all matters relating to the duties of his or her office, and shall perform such other duties as may be assigned by the Board or the President. SECTION 4.5 SECRETARY TO THE BOARD OF VISI-TORSVISITORS—At the first regular meeting after 28 February 19862014 and every fourth year thereafter, upon the nomination of the President and the Rector in concurrence, the Board of Visitors shall elect a Secretary to serve until 28 February of the fourth year thereafter and until his or her successor is elected.

Any vacancy in the office shall be filled for the unexpired term in the same manner as election for the

full term.

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SECTION 4.51 POWERS AND DUTIES—The Secretary shall attend all meetings of the Board of Visitors and its committees and shall record the minutes of all proceedings. The Secretary shall prepare minutes of such meetings that, after approval by the Board, shall be recorded in the permanent records of the Board of Visitors. He or she shall give proper notice of all meetings of the Board, shall preserve as directed all documents or papers pertaining to the actions of the Board, and shall keep in safe custody the Seal of the University, which he or she shall affix to any instrument when authorized by the Board or persons designated by it, including the Rector, the Vice Rector, the President, or the Chief Operating Officer. In addition to the foregoing, the Secretary shall perform those functions and have those duties or responsibilities which are usual to the duties of a secretary and shall assist the Board of Visitors in the discharge of its official duties. The Secretary shall, under the immediate direction of the President, perform such other duties as may be assigned to him or her by the Board, the Vice Rector, the Rector, or the President. SECTION 4.6 GENERAL COUNSEL OF THE UNIVERSITY SECTION 4.61 ELECTION—By statute, a General Counsel of the University shall be appointed by the Attorney General of the Commonwealth of Virginia. Thereafter, on nomination of the President, and his designees provide legal counsel and representation to the Board of Visitors shall elect theand its delegated administrative and academic officers. His designees include General Counsel and Associate General Counsel to serve at its pleasure. . SECTION 4.62 POWERS AND DUTIES—As the Attorney General’s chief legal officerrepresentative of the University, the General Counsel shall adviseadvises the Board, and the President, under whose immediate direction he or she shall be, on all legal matters affectingand other administrative officers and employees of the University. The General Counsel shall perform such other duties as may be assignedand Associate General Counsel report to him or her by the the Attorney General on substantive legal matters and to the President for administrative purposes. The General Counsel or other representative of the Attorney General shall be given notice of, and be invited to attend all meetings of the Board or the President. and its committees.

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SECTION 5.1 APPEALS TO THE BOARD —The Board at its discretion shall consider such appeals as are provided for in the University regulations and procedures except that in no event shall the Board consider an appeal from a decision of the Honor Committee involving an honor offense. SECTION 5.2 RETIREMENT —The President, Chief Operating Officer, Provost, General Counsel, and Secretary shall relinquish their positions as Officers of the Board upon retirement or resignation from their administrative duties. SECTION 5.3 COMMUNICATIONS TO THE BOARD — All communications of an official nature directed to the Board of Visitors shall be channeled through the office of the President. All communications of an official nature from the Board of Visitors shall be similarly channeled, or copies thereof shall be furnished to the President. SECTION 5.4 MINUTES OF BOARD MEETINGS —The Minutes of the Annual, regular, and special meetings of the Board shall be open to inspection as required by law. and posted on the Board’s website. SECTION 5.41 CLERK OF THE BOARD —The President may appoint a Clerk of the Board to provide administrative and clerical support to the Secretary, the President, the Rector, and members of the Board in fulfilling their responsibilities as prescribed in this Manual. The Clerk shall serve under the direction and supervision of the Secretary and at the pleasure of the President. SECTION 5.5 EXECUTION OF INSTRUMENTS—The Rector, the Vice Rector, the President, the Chief Operating Officer, and other persons designated and authorized by the Board of Visitors shall execute, in the name and on behalf of The Rector and Visitors of the University of Virginia, any instrument that may require the name of the corporation to be signed thereto, and the Secretary to the Board shall have authority to affix the seal of the corporation to any such instrument and to deliver it to the party entitled to receive it. SECTION 5.6 ASSIGNMENT OF SECURITIES—The Rector, the Vice Rector, the President, the Chief Operating Officer, and other persons designated and authorized by the Board of Visitors shall have authority to sell, assign, and transfer any and all stocks, bonds, evidences of indebtedness or interest thereon, rights and options to acquire or sell the same, and all other securities, corporate or otherwise, standing in the name or belonging to the Rector and Visitors of the University of Virginia in any capacity. The same persons have authority to give the assent of the corporation to mergers, consolidations, agreements for a deposit of stock, or for reorganization of any corporation or corporations in which the Rector and Visitors of the University of Virginia as a corporation may have an interest. SECTION 5.7 THE MANUAL —The Manual of the Board of Visitors of the University of Virginia sets forth the Board’s powers and duties and those of its officers in order to clarify the manner in which the Board and such officers shall function. As the controlling statement of the Board’s procedure and practice, the Manual constitutes the bylaws of the corporation.

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