University of Mary Washington New Board Member Briefing

1. University of Mary Washington New Board Member Briefing Board of Visitors Retreat July 20 – 22, 2012

2. Agenda • Annual Budget Development Process • Glossary of Budget Terms • Six Primary Fund Groups • 2012 – 2013 Budget • 2012 – 2013 Tuition and Fee Schedule • University Relationships with the Foundation

3. Annual Budget Development

4. Annual Budget Development • Annual budget process • Fiscal year budget – July 1 through June 30 • Adopted by BOV in April/May of each year • Impacted by both state and internal factors • State Six‐Year Plans • Adds potential new layer to process • Will know more after this year

5. General Operating Budget Timeline • State guidance provided in late summer / early fall • Crosscutting issues (compensation, financial aid, operation and maintenance of new facilities) • Limitations on new funding requests • Pre‐approval by Secretary of Education • Internal request guidance to VPs – late October • Governor’s budget released – late December • General Assembly convenes

6. Operating Budget Timeline, cont’d. . . • Internal VP requests due in late January • Requests reviewed by Budget Advisory Committee – January through March • BAC submits budget recommendations to President – early April • Draft budget plan prepared • Presidential priorities • General Assembly actions • Compensation • Changes in state general fund support • State tuition and fee policies • President recommends operating budget and tuition and fees to the BOV in May • BOV adopts budget and tuition and fee rates • University implements approved budget by July 1

7. Glossary of Budget Terms

8. Glossary of Budget Terms I. Revenue - Budgeted revenue is derived from either state appropriated tax funds or nongeneral funds generated by UMW. • General Funds (GF): General funds are state tax dollars. State tax dollars support Educational and General Programs, Museums and Cultural Services (Belmont and James Monroe Museum and Library) and state Student Financial Assistance Programs. • Nongeneral Funds (NGF): Nongeneral funds are typically those raised exclusively by UMW to support its budgeted expenditures, the exception being grants and contracts. Nongeneral funds are derived from the following sources:

9. Tuition: A fixed rate charged each student based on the student’s instructional program and residency status. • Comprehensive Fee: A fixed rate charged each student in excess of tuition supporting a wide variety of student, academic support and institutional programming. • Grants and Contracts: Reimbursement of expenditures from federal and state sources, primarily related to student financial assistance. • Sales and Services: Revenue from charges made by a specific organizational unit for the delivery of goods and services. • Housing: A fee charged to students who reside in university housing. Revenue generated through housing owned by the UMW Foundation (University Apartments and Eagle Landing) is not included in the university’s budget. • Board: A fee charged to students who subscribe to a university meal plan. • Other Fees: A variety of fees separately charged for services, fines, cost of materials or supplies, application processing, and facility rental.

10.  II. Expenditures- Expenditures are budgeted on a program basis. The program expenditure classifications used in the budget are nationally recognized by colleges and universities. They allow for comparative reporting and are used for analytical purposes. These expenditure classifications are: • Instruction: Expenditures of the Colleges of Arts and Sciences, Business and Education. Expenditures for both credit and non-credit activities are included, as are general academic instruction, summer session instruction, off-campus instruction, and non-credit community education conducted by the teaching faculty. • Public Service: All funds budgeted specifically for public service and expended for activities established primarily to provide non-instructional services beneficial to groups external to the institution. • Academic Support: This category includes expenditures for the support services that are an integral part of the institution’s primary mission of instruction. Included are expenditures for libraries, dean’s offices, course and curriculum development and academic technology support.

11. Student Services: Funds expended for admissions, registrar activities, financial aid administration, and activities whose primary purpose is to contribute to students’ emotional and physical well-being and to their intellectual, cultural, and social development outside the context of the formal instructional program. • Institutional Support: Expenditures for the day-to-day operational support of the institution, excluding expenditures for physical plant operations. Included are general administrative services, executive direction and planning, fiscal operations, and public relations/development. • Operation and Maintenance of Plant: Expenditures for operations established to provide service and maintenance related to the campus grounds and facilities. • Scholarships and Fellowships: Expenditures made in the form of outright grants, and tuition and fee remissions to students enrolled in formal coursework, either for credit or non-credit. • Auxiliary Enterprises: Self-supporting activities established to furnish goods and services to students, faculty and staff. • Museum and Cultural Services: Expenditures related to the operation of Belmont and the James Monroe Museum and Library. • Higher Education Centers: Expenditures related to the operation of the Dahlgren Education and Research Center.

12. III. Tuition and Fees • Tuition: A fixed rate charged each student based on the student’s enrollment load, instructional program and residency status (Virginia resident or nonresident status). • Comprehensive Fee: A fixed rate charged each student in excess of tuition based on the student’s enrollment load regardless of residency status. The Comprehensive Fee supports a wide variety of student, academic support and institutional programming. • Residential Fee: A per semester charge for on-campus housing and for UMW Foundation owned housing (e.g., University Apartments and Eagle Landing) based on room occupancy levels (single, double, triple, quad). • Meal Plans: A fee charged for subscription to a university meal plan. All residential students, whether living in University or Foundation owned housing, are required to enroll in a meal plan. Freshmen living in university housing must subscribe to either the Super Meal Plan, the 275 Meal Block Plan or the 225 Meal Block Plan. All other students living in university Housing may choose any meal plan except the 90 Meal Block or 5 Meal Plans. All students living in either the University Apartments or Eagle Landing must subscribe to a meal plan. All meal plans are available to these students except the 5 Meal Block Plan. Meal plans are also available to commuter students and students residing in the University Apartments. All meal plans come with flex dollars, which may be used to purchase additional meals or to eat in the Eagle’s Nest or Underground.

13. Mandatory Processing Fee: A non-refundable fee charged to every student that registers for classes. • Audit Fee: A fee charged to part-time students for auditing a course for no credit on a space available basis. • Tuition Overload Fee: A per credit hour fee charged to full-time undergraduate students registered for more than 18 semester credit hours. • Orientation Fee: A mandatory one-time fee charged to new students to cover the cost of student orientation programming. • Credit-by-Examination: A fee charged to degree-seeking students taking an examination for which degree credit may be awarded. • Private Music Lesson Fee: A fee charged to students taking private music lessons through the university. • Special Course Fees: A supplemental fee charged in addition to tuition for specialized instruction, such as equestrian fees or private music lessons. • Study Abroad Fee: A supplemental fee charged to students studying abroad. • BLS Life/Work Portfolio: BLS (Bachelor of Liberal Studies) candidates pay a special fee for the review of a life/work portfolio. The BLS program is designed to meet the needs of adult students who have some college experience and want to complete a bachelor’s degree in the liberal arts or sciences.

14. Six Primary Funds Education and General Auxiliary Services and Programs Comprehensive Fee Programs Student Financial Assistance Programs Museum and Cultural Services Centers for Higher Education

15. Educational and General (E&G) Programs • Core instructional programs and related support services • Academic programs, library, information technology, facilities services, campus safety, administration, finance, human resources • $52.6 million budget for 2012-13 • Represents about 51% of total operating budget • Primary sources of support come from general fund (state taxpayer) appropriations and student tuition and fees • General funds: $19.9 million (38%) • Tuition and fees: $32.7 million (60%) • Other (non-credit instruction, orientation, library fines): $1.2 million (2%)

16. Auxiliary Enterprise Programs • Self-supporting services provided to students, faculty and staff • Dining, University housing, bookstore, recreation, intercollegiate athletics, student life operations, student activities, network and communication services • Receives no general fund (state taxpayer) support • $21.6 million budgeted for 2012-13 • Represents about 21% of the total operating budget

17. Comprehensive Fee • The Comprehensive Fee budget is supported entirely by a mandatory fee charged to all students • $21.2 million budget for 2012-13 • Represents about 21% of the total operating budget

18. The Comprehensive Fee Budget • Supports a variety of Instructional, Student and University Programs. . . • Admissions • Financial Aid • Orientation and Programming • Student Clubs/Recreation/Athletics • Faculty development grants • Undergraduate research program • Special Events/Commencement • Facilities – utilities, improvements, debt service • Information Technology • News and Information, Development, Alumni Relations

19. Student Financial Assistance • Provides support for scholarships and grants awarded to students through state and federal programs • Key programs include: • Virginia Student Financial Assistance Program • Federal Pell Grant Program • Supplemental Educational Opportunity Grants (SEOG) • College Scholarship Assistance Program (federal and state) • Work study and student employment • $4.5 million budget for 2012-13 • $1.7 million from general funds • $2.8 million from federal funds • Represents about 4% of the total operating budget

20. Museums and Cultural Services • Gari Melchers - Belmont • James Monroe Museum and Library • Revenue sources • State general funds • Ticket sales • Gift shop revenue • Facilities rental • Private gifts • Total budget of $971,000 for 2012-13 • Represents about 1% of the total operating budget

21. Dahlgren Education and Research Center • Opened January 2012 • 2012-13 operating budget is currently supported almost entirely by state general funds • Funding goal is to reach 50/50 cost share between GF and user fees after 5 years • Total operating budget of $2,000,000 • Represents about 2% of total operating budget

22. The 2012-13 University Budget

23. The Budget is comprised of six separate fund groups

24. Composition of the 2012-13 Revenue Budget

25. Composition of the 2012-13 Expenditure Budget by Fund

26. 2012-13 Tuition and Fee Schedule

31. Comparison of 2012-13 Tuition and Fees

32. University Relationships withthe Foundation

33. Memorandum of Understanding • Delineates relationship between the University and the Foundation in the following key areas: • Fund raising • Asset management, including real estate • Depository of private gifts • Funding and administration of the Foundation staff, operations and services

34. Support, Development and Maintenance Agreements Between University and Foundation • Eagle Landing, Parking Deck and Pedestrian Bridge • UMW Apartments • Dining / Student Center

35. Loan Agreement to the Foundation • University loaned the Foundation $1.6 million to purchase properties on Powhatan and Thornton Streets adjacent to and near the Pizza Hut • Per the terms of the Loan, the University will purchase the properties from the Foundation by December 2014

36. Leases with the Foundation • The University has entered into several leases for property and space owned by the Foundation:

37. Questions?