June 22, 2018 BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 (513) 529-3911 FAX
June 13, 2018
The Board of Trustees of Miami University and associated Committees will meet on the Oxford Campus, Oxford, Ohio, on June 20, 21 and 22, 2018.
T. O. Pickerill II Secretary to the Board of Trustees
Overall Page 1 of 53 June 22, 2018
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
Miami University June 2018 Meetings of the Board of Trustees Oxford, Ohio
SCHEDULE OF TRUSTEE EVENTS
Wednesday, June 20, 2018 (all times are approximate)
5:00 p.m. Subcommittee Investment Subcommittee of the Meeting Finance and Audit Committee, Roudebush 104 Per separately distributed agenda
7:00 p.m. Optional Trustee Dinner, Marcum Center
Thursday, June 21, 2018 (all times are approximate)
8:00 a.m. Committee Academic and Student Affairs Committee Meeting Marcum 180/6 Per separately distributed agenda
9:30 a.m. Committee Finance and Audit Committee Meeting Marcum 180/6 Per separately distributed agenda
11:00 a.m. Board Board of Trustees Retreat, Marcum 108/110 Meeting Per attached agenda
5:20 p.m. Optional Trustee Reception, Marcum Center
Friday, June 22, 2018 (all times are approximate)
8:00 a.m. Optional Trustee Breakfast, Marcum Center
9:00 a.m. Board Board of Trustees Meeting, Marcum Center180/6 Meeting Per attached agenda
10:30 a.m. Executive Executive Session with working lunch Session
2:30 p.m. Adjourn
Overall Page 2 of 53 June 22, 2018 BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 M AIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
MIAMI UNIVERSITY BOARD OF TRUSTEES Board Retreat, June 21, 2018 Room 108/110 Marcum Conference Center, Oxford Campus All Times are Approximate
Thursday, June 21, 2018
(Times are approximate) 11:00 a.m. Retreat Convenes - Welcome and Overview, Chair Mark Ridenour
11:05 a.m. - 12:00 p.m. Free Speech – Rights and Responsibilities, Robin Parker, General Counsel
12:00 p.m. - 12:30 p.m. Lunch, Marcum, Room 154/158
12:30 p.m. - 1:30 p.m. Qualitative Portfolio Review - Managing, Cultivating and Soliciting Miami's Best Prospects Brad Bundy, Sr. Associate VP for University Advancement
1:30 p.m. - 1:40 p.m. Break
1:40 p.m. - 3:10 p.m. Deans Update – Past, Present, Boldly Creative Academic Deans
3:10 p.m. - 3:20 p.m. Break
3:20 p.m. - 5:20 p.m. Rediscovering Your Creative Inner Child Jay Kayne, Partner, ImagineIt Project, LLC
5:20 p.m.. Adjourn. Reception and informal dinner (optional), Marcum 112
Overall Page 3 of 53 Attachment Page 1 of 1 Agenda June 22, 2018 BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
Miami University Board of Trustees Marcum Center, Room 180-6, Oxford Campus Agenda 9:00am Friday, June 22, 2018
Call the Meeting to Order and Roll Call – Chair Mark Ridenour
Public Study Session Comments from the Public (if requested) Annual Update, Intercollegiate Athletics, Athletic Director David Sayler
Public Business Session Approval of the Prior Meeting Minutes (final attachment to this agenda) Consent Calendar, Attachment A - Designation of Emerita/Emeritus - VP for Marketing and Communications, and appointment - VP for Institutional Diversity, and appointment Comments by the Chair, Trustee Mark Ridenour Reports - Miami President – Dr. Greg Crawford Committee Reports, Resolutions and Ordinances - Academic and Student Affairs, National Trustee Terry Hershey - Finance and Audit, National Trustee John Altman Resolutions and Ordinances, SVP Creamer, Attachment B - Resolution, Investment Policy Student Trustee Reports Other Business Resolution of Appreciation, National Trustee Mike Gooden, Attachment C
Executive Session Consult with Counsel, Pending Litigation Matters Required to be Kept Confidential, Trade Secrets
Return to Public Session Other Business, as required
Adjourn
Written Reports and Other Material Advancement Update, Attachment D Prior Meeting Minutes, Attachment E
Overall Page 4 of 53 Attachment Page 1 of 1 Attachment A Consent Calendar June 22, 2018
BOARD OF TRUSTEES ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Consent Calendar
RESOLUTION R2018-xx
BE IT FURTHER RESOLVED: that the Board of Trustees hereby approves the following for the rank of Administrator Emerita effective on the formal date of retirement:
Kim Suellau Director of Global Business Programs Farmer School of Business
BE IT FURTHER RESOLVED: that the Board of Trustees hereby approves the following for the rank of Administrator Emeritus effective on the formal date of retirement:
James Lipnickey Director of Regional Tech Services Regional Campuses
Overall Page 5 of 53 Attachment Page 1 of 5 Attachment A Consent Calendar June 22, 2018
BOARD OF TRUSTEES ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Consent Calendar
RESOLUTION R2018-xx
WHEREAS, Miami University provides one of the best undergraduate experiences in the nation, enhanced by superior, select graduate programs; and
WHEREAS, professional expertise is vital in publically advancing the mission of Miami University, and in promoting awareness of the University’s prominent role within State, National and International higher education.
NOW, THEREFORE BE IT RESOLVED, that the positon of Associate Vice President for Communications and Marketing, is now redesignated as Vice President for Communications and Marketing, and Chief Marketing and Communications Officer; and
BE IT FURTHER RESOLVED, that the Secretary to the Board of Trustees is directed and authorized to adjust the Regulations of the Board of Trustees to reflect this change
Overall Page 6 of 53 Attachment Page 2 of 5 Attachment A Consent Calendar June 22, 2018
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Consent Calendar
RESOLUTION R2018-xx
BE IT RESOLVED: that the Board of Trustees, upon the recommendation of the President, hereby elects Michele Sparks as Vice President for Communications and Marketing, and Chief Marketing and Communications Officer, to become effective July 1, 2018.
Overall Page 7 of 53 Attachment Page 3 of 5 Attachment A Consent Calendar June 22, 2018
BOARD OF TRUSTEES ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Consent Calendar
RESOLUTION R2018-xx
WHEREAS, Miami University is committed to diversity and inclusion, and respect for the dignity of others, the rights and property of others, and the right of others to hold and express disparate beliefs, as fundamental, core values of Miami University; and
WHEREAS, it is a primary goal of Miami University achieve inclusive excellence, and a welcoming environment where each member of the Miami community has an opportunity to be involved and included in every aspect of the campus experience; and
WHEREAS, the Mission of Miami University includes instilling in its students an appreciation of diverse views, and a sense of responsibility to our global future; and
WHEREAS, the Office of Institutional Diversity is charged with promoting these essential values and indispensable goals.
NOW, THEREFORE BE IT RESOLVED, that the positon of Associate Vice President for Institutional Diversity, is now redesignated as Vice President for Institutional Diversity and Inclusion; and
BE IT FURTHER RESOLVED, that the Secretary to the Board of Trustees is directed and authorized to adjust the Regulations of the Board of Trustees to reflect this change.
Overall Page 8 of 53 Attachment Page 4 of 5 Attachment A Consent Calendar June 22, 2018
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Consent Calendar
RESOLUTION R2018-xx
BE IT RESOLVED: that the Board of Trustees, upon the recommendation of the President, hereby elects Ronald Scott as Vice President for Institutional Diversity and Inclusion, to become effective July 1, 2018.
Overall Page 9 of 53 Attachment Page 5 of 5 Attachment B Finance and Audit Resolutions June 22, 2018
Miami University Resolution R2018-xx
WHEREAS, the Board of Trustees of Miami University adopted Resolution R2015-45 on May 1, 2015, to update and amend the Non-Endowment Funds Investment Policy; and
WHEREAS, the Board of Trustees adopted Resolution R2018-19 on December 8, 2017, that suspended Section C of the Non-Endowment Funds Investment Policy until new investment objective and risk parameters can be adopted by the Investment Sub- Committee; and
WHEREAS, the Board of Trustees adopted Resolution R2018-18 on December 8, 2017 amending the Non-Endowment Funds Annual Expenditure Policy; and
WHEREAS, Miami University has contracted with Strategic Investment Group (SIG) to serve as the university’s chief investment officer and in this role SIG has worked with the administration and the Investment Sub-Committee to develop the proposed investment policy statement, the asset allocation targets, ranges and benchmarks, and the annual expenditure policy; and
WHEREAS, the Senior Vice President for Finance and Business Services of the University, with the concurrence of the Investment Sub-Committee and the Finance and Audit Committee, has recommended revising and combining the two previous policies as stated below;
NOW, THEREFORE BE IT RESOLVED that the Board of Trustees approves the amended Non-Endowment Funds Investment Policy; and
BE IT FURTHER RESOLVED that this Resolution supersedes and replaces Resolution R2018-18 and Resolution R2018-19.
MIAMI UNIVERSITY INVESTMENT POLICY STATEMENT - NON-ENDOWMENT Updated June 2018
Overall Page 10 of 53 Attachment Page 1 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
MIAMI UNIVERSITY Investment Policy Statement – Non-Endowment JUNE 2018
I. Purpose This Investment Policy Statement (“IPS”) is intended to serve as a governing framework for the management of the Non-Endowment assets of Miami University. All University funds derived from the sources enumerated in Ohio Revised Code 3345.05 (A) (hereafter referred to as the “Non-Endowment”), shall for investment purposes be designated into one of three pools: 1) the University’s Operating Cash (Tier 1); 2) the University’s Core Cash Sub-Account (Tier 2); and 3) the University’s Long-Term Capital Sub-Account (Tier 3). In addition, the Board of Trustees of Miami University (the “Board”) may designate some of these funds as quasi-endowments, which for investment purposes shall be invested with the University’s endowment pool according to the Pooled Investment Agreement between the University and the Miami University Foundation and the endowment investment policy (Appendix A). The investment of the Non-Endowment is subject to and shall be made in accordance with ORC 3345.05 (C) (1), with at least twenty-five percent of the average amount of the investment portfolio over the course of the previous fiscal year invested in securities of the United States government or of its agencies or instrumentalities, the treasurer of state's pooled investment program, obligations of Ohio or any political subdivision of Ohio, certificates of deposit of any national bank located in Ohio, written repurchase agreements with any eligible Ohio financial institution that is a member of the federal reserve system or federal home loan bank, money market funds, or bankers acceptances maturing in two hundred seventy days or less which are eligible for purchase by the federal reserve system, as a reserve. The Non-Endowment assets in excess of the twenty-five percent may be pooled with other University funds and invested in accordance with Ohio Revised Code Section 1715.52 (UPMIFA).
II. Roles and Responsibilities Board of Trustees. The IPS has been adopted by the Board upon the recommendation of the Board’s Finance and Audit Committee (“Finance & Audit”) which serves as the Investment Committee required by Ohio Revised Code 3345.05.
The Board has delegated implementation of this policy to an investment subcommittee comprised of Board members (the “Committee”). To assist with the investment program the Committee has retained the services of an outsourced Chief Investment Officer (the “OCIO”) which satisfies the requirements of Ohio Revised Code Section 3345.05 (D) (1).
1
Overall Page 11 of 53 Attachment Page 2 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
The IPS will guide the activities and decisions of the Board, as well as, the Committee, the staff of Miami University (the “Staff”), and the OCIO in managing the assets of the Non-Endowment.
Committee. The Committee shall oversee the investment and administration of the Non- Endowment. The Committee, in conjunction with the OCIO, establishes policies and guidelines consistent with this IPS designed to position the Non-Endowment to achieve its objectives with a prudent level of risk. The Committee delegates its authority to make investment decisions to the OCIO in accordance with the Investment Management Agreement dated May 16, 2018, which is incorporated herein by reference. The Committee shall report at least semi-annually to the Board. Revisions to the IPS may be recommended by the Committee and approved by the Board as necessary. Specific responsibilities of the Committee include: submitting for Board approval an IPS, setting forth, among other things, the roles and responsibilities of the Board, the Committee, the Staff, the OCIO, and any other advisors or service providers as deemed appropriate by the Committee submitting for Board approval, following consultation with the OCIO, investment guidelines and objectives for the investment of the assets, including asset allocation target exposures, permissible ranges (i.e., minimum and maximum allocations to each asset class), and the benchmarks against which the performance of each asset class, and the portfolio as a whole, will be evaluated; delegating specific administrative and operational responsibilities relating to the investment and reinvestment of the Non-Endowment assets monitoring compliance with the IPS reviewing periodically the following: o Investment performance, including comparisons to objectives and benchmarks o Asset allocation for the Non-Endowment o Fees paid in support of the management of the Non-Endowment overseeing the OCIO or other advisor(s) who shall have the responsibility, and may have discretion, for implementing investment strategies in accordance with the guidelines set forth in the IPS communicating with the OCIO and any other advisor(s) any changes in the risk profile and characteristics of Miami University that may impact the investment objectives and guidelines of the Non-Endowment overseeing other service providers to the Non-Endowment, including the custodian of Non-Endowment assets proposing to the Board such amendments to the IPS as it, in consultation with the OCIO and any other advisor, deems appropriate
2
Overall Page 12 of 53 Attachment Page 3 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
Staff. The Staff is responsible for overseeing the operations of the Non-Endowment investment program. Specific responsibilities of the Staff include: directing oversight of the budgeting, investing, forecasting, and monitoring associated with the Tier 1 Operating Cash portfolio serving as the day-to-day contact with the OCIO including communicating planned contributions and withdrawals, transfers of funds, and liquidity needs specifying the appropriate strategy for the transfer of funds among the Non- Endowment investment tiers identifying division carry forward balances, donor gifts, and other unrestricted funds that can be quasi-endowed managing constituent relationships monitoring third party service providers (e.g., auditors, custodian, consultants) providing administration, reporting, accounting, audit and tax support for the Non-Endowment operations providing support to the Committee ensuring compliance with Ohio Revised Code Section 3345.05 (C)(1) maintaining the official minutes and records of the Committee
Outsourced Chief Investment Officer. The OCIO will have day-to-day responsibility and discretion for investing a designated portion of the Non-Endowment assets (specifically Tiers 2 and 3). The OCIO will report to the Committee on a regular basis in accordance with the investment management agreement (“Investment Management Agreement”) that governs the relationship. Specific responsibilities include: advising the Committee on the adoption of, and any amendments to, the IPS overseeing the implementation of the investment program on a discretionary basis, including the selection and monitoring of commingled investment vehicles, the appointment of sub-advisers, and the direct management of assets not allocated to investment vehicles or sub-advisers, in accordance with the guidelines and asset allocation ranges as set forth in the Investment Management Agreement periodically reviewing and recommending to the Committee any changes or modifications of the IPS, including the investment guidelines and objectives, to the Committee taking all necessary actions with respect to the hiring and termination of sub- advisers, and the subscription to and withdrawal from, commingled investment vehicles, including reviewing and executing investment management agreements and subscription documents setting investment guidelines for sub-advisers and monitoring their compliance therewith meeting with sub-advisers and evaluating their investment performance
3
Overall Page 13 of 53 Attachment Page 4 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
meeting with the Committee at least quarterly or at other intervals as reasonably agreed with the Committee interacting with the custodian and other relevant service providers to the Non- Endowment, as necessary to perform its investment management services assisting the Staff in meeting its reporting and administrative requirements providing reporting and performance monitoring as necessary for the Committee to perform its oversight responsibilities
III. Fiduciary Duties
In fulfilling its responsibilities described herein, each of the Board, the Committee and the OCIO is a fiduciary to the Non-Endowment and shall act in accordance with UPMIFA. Among other things, UPMIFA requires each person managing an institutional portfolio to do so in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
IV. Objectives: Non-Endowment Investment Program The primary objective of the Non-Endowment investment program is to ensure adequate operating liquidity for the University. Liquidity needs are actively managed in a three- pool structure that allows for differentiation among investment risks and returns.
For investment strategy purposes, the University’s Non-Endowment and Foundation Endowment portfolios should be considered together. The liquidity, risk, and return characteristics of the combined pools provide the opportunity to more effectively deploy capital and improve the overall risk-adjusted returns of both investment programs.
The investment of Non-Endowment assets will be guided by the objective of earning market rates of return while accepting a low level of market risk. The portfolio's asset allocation will be statistically modeled using historical and projected risk and return characteristics of the portfolio's asset classes. The Tiers are constructed to adequately meet the University’s projected budgetary needs and Ohio Revised Code requirements with low risk and liquid investments in Tier 1, with progressively higher expected returns at higher risk profiles in Tiers 2 and 3.
The Committee has adopted asset allocation targets and permissible ranges, set forth in Exhibit 1, that are designed to meet this objective provided that markets deliver equilibrium returns consistent with normal market conditions. A benchmark index has been assigned to each asset class, as set forth in Exhibit 1. The combination of the benchmark index assigned to each asset class, weighted in accordance with the target allocation to that asset class, forms the “Policy Benchmark” against which the portfolio’s overall performance will be measured. Each Tier seeks to achieve performance (net of management fees) that exceeds the performance of the applicable Policy Benchmark (net
4
Overall Page 14 of 53 Attachment Page 5 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
of assumed passive management fees and rebalancing costs) over rolling five- and ten- year periods.
V. Investment Objectives: Non-Endowment Tiers TIER 1 - University Operating Cash Objective: To meet the day-to-day cash obligations of the University, provide a liquid and low investment risk source of funds when needed, and meet Ohio Revised Code requirements for public funds. Investments: Includes bank deposits, other cash vehicles, and eligible investments under ORC 3345.05 (C) (1). Tier Size: The targeted minimum cash balance held in Tier 1 is budgeted each fiscal year by the University staff and is confirmed every six months. The minimum balance will be two times the average monthly negative cash balance of the preceding fiscal year.
TIER 2 - University Core Cash Sub-Account Objective: To provide a liquid source of funds in the event the Tier 1 pool is insufficient to meet the University’s operating cash needs, while providing an opportunity for incremental returns with modest volatility. This Sub-Account also houses funds earmarked for specific future disposition by the University that are likely to require target date maturity matching. Investments: Include U.S. Treasury and government agency securities generally with an average weighted maturity of between zero and two years for the baseline allocation. May include eligible investments under ORC 3345.05(C)(1). Tier Size: The targeted balance within this Sub-Account is confirmed during each fiscal year budgeting cycle and verified every six months. The balance generally should not fall below two times the average monthly negative cash balance of the preceding fiscal year.
TIER 3 - University Long-Term Capital Sub-Account Objective: To provide “endowment-like” long-term risk-adjusted returns on assets that would be expended by the University only in the unlikely event of severe financial exigency. Investments: Include public equity, absolute return and hedged strategies, open- ended real estate funds, futures-based commodity strategies, and diversified global fixed income securities. May include eligible investments under ORC
5
Overall Page 15 of 53 Attachment Page 6 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
3345.05(C)(1). While these funds are expected to have less liquid fund structures, private capital investments will be excluded from consideration unless approved by the Committee. Tier Size: This Sub-Account has no size restrictions and generally receives deposits of residual operating cash not deployed in Tiers 1 and 2.
VI. Asset Allocation
To achieve the investment objectives of this IPS, an asset allocation study was conducted and shared with the Committee. It was used to establish percentage targets and ranges for each asset class eligible for investments within Tiers 2 and 3. The asset allocation study analyzed the expected return, risk, and correlation of several asset classes as well as, the expected return and risk of various hypothetical portfolios comprising these asset classes. The expected return and risk characteristics of various portfolios were evaluated in terms of the future expected efficiency of achieving the investment objectives of the Non- Endowment.
Based upon this analysis, asset allocation policies, including ranges for each asset class, were defined. The asset allocation policies are contained in the investment guidelines set forth in Exhibits 1 and 2.
VII. Risk Management
The Tier 2 Sub-Account will emphasize liquidity and low volatility in keeping with the portfolio’s objective of serving as a cash buffer for the University’s short-term operating cash needs. The appropriate duration target and range will be agreed to by the Committee and OCIO and specified in Exhibit 1.
Investments in the Tier 3 Sub-Account will be broadly diversified across and within asset classes in order to seek to minimize the impact of adverse asset class and security- specific shocks, and to avoid excessive portfolio volatility. An appropriate target range for the annual standard deviation of the Tier 3 policy portfolio will be agreed on by the Committee and OCIO as specified in Exhibit 2. Meeting the “endowment-like” long- term return objectives of the Non-Endowment program requires the OCIO to regularly monitor and manage market risks associated with the overall portfolio as well as individual asset classes. Specific investments will also be reviewed and aggregated, as available from each manager, on a regular basis to ensure that the portfolio does not maintain unwarranted concentration risks with respect to any single factor or security at the manager level, asset class level and portfolio level.
6
Overall Page 16 of 53 Attachment Page 7 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
Leverage is also monitored to ensure that the intended exposure is in line with parameters determined by the OCIO to be appropriate for a specific strategy and/or asset class. In addition, the portfolio will seek to maintain sufficient liquidity, at all times, to meet the ongoing distribution needs of the Non-Endowment, to rebalance the portfolio, and to capture tactical opportunities. The source of monies for such liquidity needs will be based on rebalancing and cost considerations.
VIII. Performance Monitoring and Evaluation
The performance of the Non-Endowment, component asset classes, Sub-Advisers and investment vehicles will be monitored by the OCIO on an ongoing basis and reviewed by the Committee at least quarterly. Investment returns are to be measured net of all fees, including investment manager and the OCIO fee. The OCIO will provide a summary of returns versus stated benchmarks for short-term and long-term periods. The OCIO will meet with the Committee regularly to provide a review of performance and risk, a discussion of market conditions and a summary of the current positioning of the portfolio.
IX. Annual Expenditure Policy A reserve for investment fluctuations will be maintained in order to buffer the portfolio from short-term capital market fluctuations. The target balance of the reserve for future investment fluctuations is determined using the statistical drawdown of the previous fiscal year-end Non-Endowment pool, plus one year of budgeted Non-Endowment investment earnings.
Each year, the University budget office shall budget investment earnings based on a reasonable assessment of the interest rate and capital markets environment and any funding to be added to the reserve for investment fluctuations.
Any earnings in excess of this budgeted level shall be allocated 100% to the reserve for investment fluctuations, unless otherwise determined by the Board of Trustees. In the event the earnings are short of the budgeted amount, the difference shall be drawn from the reserve for investment fluctuations.
The target amount of the reserve for investment fluctuations shall be reviewed at least annually to determine its sufficiency and to establish a future target. The review should include estimated losses modelled at one, two, and three standard deviations of the combined allocations to Tiers 1 and 2.
7
Overall Page 17 of 53 Attachment Page 8 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
X. Conflicts of Interest The Committee shall take reasonable measures to assess the independence of the OCIO, and any other service providers to the Non-Endowment. Any actual or potential conflicts of interest relating to any of the foregoing, or to any member of the Board or Committee, shall be disclosed and addressed in accordance with UPMIFA, Ohio’s Ethics laws as applicable, and any conflict of interest policy adopted by Miami University.
XI. Investment Guidelines Sub-advisers who are appointed to manage accounts for the Non-Endowment will be provided investment guidelines as determined by the OCIO. In general, the guidelines will stipulate the types of securities in which the account may invest, general characteristics for the portfolio and/or the performance benchmark and objectives. The specific guidelines may vary depending upon the asset class or sub-asset class. Commingled investment vehicles will be governed by their offering memorandum and other constituent documents.
8
Overall Page 18 of 53 Attachment Page 9 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
Exhibit 1 MIAMI UNIVERSITY – NON-ENDOWMENT (TIER 2) Policy Allocation Targets, Ranges and Benchmarks JUNE 2018
Asset Policy Policy Ranges Benchmark Indices (1) Category Allocation - + Fixed Income 100.0% -10.0% 0.0%
U.S. Treasury & Gov't Agency Securities 100.0% -10.0% 0.0% ICE BAML 0-2 Year Treasury Index
Cash 0.0% 0.0% 10.0% Citigroup 3 Month Treasury Bill Index Total 100% Footnotes: (1) The Policy Benchmark will be reported both gross and net of assumed passive management fees and rebalancing costs. (2) Targeted Duration for the Baseline Allocation: a range of +/- 0.5 years will be targeted around the duration of the benchmark. For example, should the ICE BAML 0-2 Year Treasury Index carry a duration of 1 year, a target range of 0.5 and 1.5 years will be targeted. (3) Should this sub-account house funds earmarked for special university projects requiring target date matching, the University Staff will establish an estimated draw schedule and the OCIO will invest in U.S. Treasury and government/agency securities accordingly.
9
Overall Page 19 of 53 Attachment Page 10 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
Exhibit 2 MIAMI UNIVERSITY – NON-ENDOWMENT (TIER 3) Policy Allocation Targets, Ranges and Benchmarks JUNE 2018
Asset Policy Policy Ranges Benchmark Indices (1) Category Allocation - + Equities 54.0% -10.0% +10% U.S. Equities 27.0% -10.0% +10% Russell 3000 Index Non-U.S. Equities 18.0% -10.0% +10% MSCI World ex-US Investable Market Index (IMI) (Net) (2) Emerging Market Equities 9.0% -9.0% +10% MSCI Emerging Markets Index (Net) (2)
Alternatives (Net) (3)(4) 12.0% -12.0% +10% Hedge Funds (Net)(4) 12.0% -12.0% +10% HFRX Equal Weighted Strategies Index Hedge Funds (Gross) 22.0% -22.0% +5% Portable Alpha Overlay 10.0% -10.0% +10%
Real Assets 10.0% -7.0% +13% Real Estate 3.0% -3.0% +5% NCREIF Fund Index - Open End Diversified Core Equity Index Commodities 3.0% -3.0% +6% S&P GSCI Total Return Index TIPS 4.0% -4.0% +6% Bloomberg Barclays 1-10 Year U.S. TIPS Index
Fixed Income (4) 24.0% -10.0% +10%
U.S. Investment Grade Fixed Income(5) 21.5% -15.0% +10% Bloomberg Barclays U. S. Aggregate Index U.S. High Yield Bonds 2.5% -2.5% +10% BofA Merrill Lynch High Yield Cash Pay Index Non-U.S. Fixed Income 0.0% 0.0% +10% Citigroup Non-USD World Government Bond Index Hedged
Cash 0.0% 0.0% +20% Citigroup 3 Month Treasury Bill Index Total 100% Footnotes: (1) The Policy Benchmark will be reported both gross and net of assumed passive management fees and rebalancing costs. (2) Indices are net of dividend withholding tax. (3) (Net) indicates that allocations are net of portable alpha strategies. The maximum gross allocation to hedge funds, including those overlaid in portable alpha strategies, is 27%. (4) U.S. Fixed Income includes physical holdings of Treasuries, corporates and synthetic fixed income achieved through portable alpha strategies. (5) For purposes of assessing compliance with the minimum of the policy range, fixed income will be deemed to include the allocation to cash. (6) The targeted annual standard deviation range is 10-12%.
10
Overall Page 20 of 53 Attachment Page 11 of 12 Attachment B Finance and Audit Resolutions June 22, 2018
Business Session Item 5 June 21, 2018 Finance and Audit
Appendix A MIAMI UNIVERSITY FOUNDATION INVESTMENT POLICY most recent version as adopted by the Foundation Board of Directors
[AVAILABLE UPON REQUEST]
11
Overall Page 21 of 53 Attachment Page 12 of 12 Attachment C Other Business Resolutions June 22, 2018
BOARD OF TRUSTEES ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
June 22, 2018 Other Business
RESOLUTION R2018-xx
Resolution of Appreciation for C. Michael Gooden
WHEREAS, C. Michael Gooden was appointed a National Trustee in 2012, and reappointed for a second term in 2015; and
WHEREAS, the Board of Trustee Regulations set the maximum length of service at six years, which concludes on June 30, 2018; and
WHEREAS, National Trustee Gooden graduated from Miami University in 1972, with a degree in Applied Science, and later was awarded an Honorary Doctor of Science from Miami University in 1993; and
WHEREAS, Mike continued his education, earning a Master of Science in Engineering from The Moore School at the University of Pennsylvania; and
WHEREAS, Mike served his nation with honor, courage and commitment for 25 years in the United States Navy, participating in the Navy Enlisted Scientific Education Program while attending Miami University; and
WHEREAS, he was later honored by the Alumni of Miami’s Naval Reserve Officer Training Corps as the 1994 Admiral Sidney W. Souers Distinguished Alumni Award Recipient, for distinguishing himself as a naval officer, and as co-founder, Chairman of the Board, and CEO of Integrated Systems Analysts, Inc.; and
WHEREAS, Mike has served the engineering and business professions, and the community, as the director or chair of; the Greater Washington Board of Trade, the Northern Virginia Minority Business and Professional Association, the National Coalition of Minority Businesses, and the Smithsonian Institution Libraries; and
WHEREAS, he has further served the nation and his community through organizations such as; the Professional Services Council, the American Society of Naval Engineers, the U.S. Chamber of Commerce, the Board of Overseers for the School of Engineering and Applied Science at the University of Pennsylvania, the National Technical Association, the National Science Foundation, and many others, including the United Negro College Fund Advisory Board, and the Northern Virginia Community College Educational Foundation Advisory Board; and
Attachment Overall Page 22 of 53 Attachment Page 1 of 2 Attachment C Other Business Resolutions June 22, 2018
WHEREAS, Mike has also untiringly served his Alma Mater as a College of Engineering and Computing (CEC) Dean’s Ambassador, a member of the CEC Advisory Council, service on the Business Advisory Council, as a Commencement Speaker, and as host of the CEC sponsored National Technical Association annual conference; and
WHEREAS, during his tenure of service as a Miami University National Trustee, Miami has seen phenomenal growth in physical facilities, a strengthened student academic profile, growth in Miami’s student diversity, the Dedication of the College of Engineering and Computing’s Garland Hall, and recognition by U.S. News and World Report that Miami is both our nation’s most efficient university for producing high quality results, and the top public university in its commitment to undergraduate education; and
WHEREAS, the Miami University Trustees, faculty, staff, and students will miss Mike’s strong commitment to inclusive excellence, his great wisdom, significant experience, and extraordinary insight.
NOW, THEREFORE BE IT RESOLVED, that the members of Miami University’s Board of Trustees do hereby express their sincere gratitude and deepest appreciation for C. Michael Gooden’s service and leadership; and
BE IT FURTHER RESOLVED, that the members of this Board offer their best wishes for his continued good health and success in all future endeavors, and extend a warm and open invitation to Mike and Diane to visit often in the years ahead.
Done, by the Miami University Board of Trustees, this Twenty-Second Day of June, Two Thousand Eighteen, at Miami University, in the City of Oxford, County of Butler, State of Ohio, during the Two Hundred and Ninth year of the University’s Charter.
Attachment Overall Page 23 of 53 Attachment Page 2 of 2 Attachment D Advancement Update June 22, 2018
Board of Trustees June 22, 2018
Overall Page 24 of 53 Attachment Page 1 of 14 Attachment D Advancement Update June 22, 2018
University Advancement Report Tom Herbert, J.D. Senior Vice President, University Advancement President, Miami University Foundation
Overall Page 25 of 53 Attachment Page 2 of 14 Attachment D Advancement Update June 22, 2018 FY’18 Fundraising Progress
» Goal: $80 million
» Raised to date: $81 million (101% of goal)
Overall Page 26 of 53 Attachment Page 3 of 14 Attachment D Advancement Update June 22, 2018
Three-year rolling averages
• FY’13: $36.8 million
• FY’14: $42.7 million
• FY’15: $51.9 million
• FY’16: $57.1 million
• FY’17: $74.1 million
• FY’18: $78.8 million
Overall Page 27 of 53 Attachment Page 4 of 14 Attachment D Advancement Update June 22, 2018 Three-year rolling averages
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$- FY13 FY14 FY15 FY16 FY17 FY18
Overall Page 28 of 53 Attachment Page 5 of 14 Attachment D Advancement Update June 22, 2018 Miami Promise Scholarship Campaign
» Goal: $100 million
» Raised to date: $134.8 million (135% of goal)
Overall Page 29 of 53 Attachment Page 6 of 14 Attachment D Advancement Update June 22, 2018
Miami Promise Scholarship Campaign Goals
» FY’15: $18.0 million -- $19.8 million raised » FY’16: $18.0 million -- $30.3 million raised » FY’17: $18.7 million -- $29.4 million raised » FY’18: $20.7 million -- $55.2 million raised to date » FY’19: $24.6 million
Overall Page 30 of 53 Attachment Page 7 of 14 Attachment D Advancement Update June 22, 2018
Graduating Champions Campaign
» Goal: $70 million
» Raised to date: $74.6 million
Overall Page 31 of 53 Attachment Page 8 of 14 Attachment D Advancement Update June 22, 2018
Farmer School of Business Campaign
» Five year campaign for $250 million
» Timeline: July 1, 2016 – June 30, 2021
» Silent phase
» Raised to date: $60 million
Overall Page 32 of 53 Attachment Page 9 of 14 Attachment D Advancement Update June 22, 2018
The Humanities Center
» Fundraising target: $1.5 million (NEH Challenge Grant, by July ’19)
» Met or surpassed all goals so far: FY’16, FY’17, FY’18
» Raised to date: $1,390,464
» $109,536 to raise (by July 2019) to complete the challenge
Overall Page 33 of 53 Attachment Page 10 of 14 Attachment D Advancement Update June 22, 2018 $1B Campaign Progress Report
» Campaign to date:
» Goal: $1 billion
» Raised to date: $278.6 million (28% of goal)
Overall Page 34 of 53 Attachment Page 11 of 14 Attachment D Advancement Update June 22, 2018 $1B Campaign Progress Report
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000 $278,620,000
$-
Overall Page 35 of 53 Attachment Page 12 of 14 Attachment D Advancement Update June 22, 2018
Key Advancement Hires
» Kim Tavares – AVP for Alumni Relations
» Beth Cavanaugh – AVP for Communication, Marketing, Events
» Kirk Bogard – AVP of Dev, Farmer School of Business
» Randy Pratt – AVP of Dev, Principal Gifts & Presidential Priorities
» Ryan Elias – AVP of Dev, Corporate & Foundation Relations
Total hires in FY’18: 33
Overall Page 36 of 53 Attachment Page 13 of 14 Attachment D Advancement Update June 22, 2018
Thank you!
Overall Page 37 of 53 Attachment Page 14 of 14 Attachment E Prior Minutes June 22, 2018
BOARD OF TRUSTEES ROUDEBUSH HALL ROOM 212 OXFORD, OHIO 45056 (513) 529-6225 MAIN (513) 529-3911 FAX WWW.MIAMIOH.EDU
MIAMI UNIVERSITY BOARD OF TRUSTEES Minutes of the Board of Trustees Meeting Oxford Campus, Marcum Conference Center, Rooms 180-186 Friday, May 18, 2018
The Secretary to the Board of Trustees confirms that as specified in the Regulations of the Board of Trustees of Miami University, and in compliance with Section 121.22 of the Ohio Revised Code, due notice was given prior to holding this meeting of the Board of Trustees.
The meeting was called to order at 9:00 a.m. in the Marcum Conference Center, on the Oxford Campus with the Board Chair, Mr. Mark Ridenour, presiding. The roll was called with a majority of Trustees present, constituting a quorum. In addition to the Board members; President Greg Crawford, Provost Phyllis Callahan, Senior Vice Presidents David Creamer, Tom Herbert, and Michael Kabbaz; and Vice Presidents Jayne Brownell and Pete Natale were also present; as were; Robin Parker, General Counsel; and Ted Pickerill Secretary to the Board of Trustees. Members of the faculty, staff, student body and community were also in attendance.
Present: John W. Altman (National Trustee) Zachary Haines C. Michael Armstrong (National Trustee) Terry Hershey (National Trustee) Jagdish K. Bhati Hallie Jankura (Student Trustee) Megan Cremeans (Student Trustee) John C. Pascoe Robert E. Coletti (National Trustee) Diane Perlmutter (National Trustee) Sandra D. Collins Mark E. Ridenour C. Michael Gooden (National Trustee) Rodrick Robinson Thomas W. Gunlock Robert W. Shroder
Absent: David H. Budig
Comments from the Public (Attachment A)
Donald Ucci, Cathy Wagner, and Amber Franklin addressed the Board. They presented a signed statement, indicating their support for SR 18-11, which they the Trustees to adopt.
The statement is included as Attachment A.
Public Study Session
Climate Survey (Attachment B)
Ron Scott, Associate Vice President for Institutional Diversity, and Denise Krallman, Director of Institutional Research, informed the Board of the results from the recent Climate Survey conducted by Rankin and Associates Consulting. AVP Scott provided background information on the creation of the survey, explained that the survey it to help in understanding Miami’s strengths and weaknesses, and in giving a voice to all. An in depth review of the results
Overall Page 38 of 53 Attachment Page 1 of 16 Attachment E Prior Minutes June 22, 2018
is underway and actions will be taken to enhance Miami University.
Chair Ridenour thanked them and asked that the Board receive an update at a future meeting.
The survey’s executive summary and the presentation are included as Attachment B.
Public Business Session
The Board was informed that the Consent Calendar contained an additional item, the affirmation of Dr. Cathy Bishop-Clark as Dean of the College of Liberal Arts and Applied Science. The Board was also informed that the FY2019 Budget Appropriation Ordinance was revised to reflect the most recent estimates for the incoming, fall 2018 class. Both changes were included in the materials provided to the Trustees and available to the public.
Chair Ridenour then asked the two new Trustees, Zachary Haines and Student Trustee Megan Cremeans to introduce themselves.
Approval of Prior Meeting Minutes
Trustee Shroder moved, Trustee Pascoe seconded, and by voice vote, the minutes of the prior meeting of the Board of Trustees were unanimously approved.
Consent Calendar (Attachment C)
Resolutions on the Consent Calendar, included:
- Designation of Emerita/Emeritus - Award of an Honorary Degree - Award of Tenure - Affirmation of the FSB Dean Appointment - Affirmation of the CLAAS Dean Appointment - Division of Student Affairs Name Change
Trustee Bhati moved, Trustee Robinson seconded, and by voice vote, the resolutions presented on the Consent Calendar were unanimously approved.
All resolutions from the Consent Calendar are included as Attachment C
Comments by the Chair
Chair Mark Ridenour relayed the following information:
Good morning and welcome to this meeting of the Miami University Board of Trustees. Much has occurred since our last meeting. I would like to begin by welcoming Zac Haines and Megan Cremeans, our newest Trustees - welcome! We look forward to your
Overall Page 39 of 53 Attachment Page 2 of 16 Attachment E Prior Minutes June 22, 2018
contributions to this body.
I also would like to welcome our new student leaders, Student Body President Meghan Murtagh and Vice President Vincent Smith, our new ASG leaders - Congratulations!
I would like to thank Ron and Denise for their wonderful update on the Climate Survey. We value the input of all Miamians, and this survey has given a voice to those who are often voiceless, and we will all strive to make Miami welcoming for all. There is much to be done, these are challenges faced throughout society and by colleges and universities nationwide but we will engage to solve.
In April we received some good news from the Federal Government. Federal Funds have been designated to help The Butler County Regional Transit Authority (BCRTA) build a new station in Oxford.
The funds for our campus busing partner were awarded through the Federal Competitive Bus Grant Program. The grant will help build the Chestnut Street Multimodal Station and Shared Services Facility in Oxford. The station will be a passenger and operations center.
BCRTA will be awarded more than $2.6 million to help fund the facility which will allow easy transfers from regional BCRTA and interurban bus routes, and offer shared services to local partners like the Talawanda School district. Additionally, the facility is planned to serve pedestrians and cyclists of the newly developing Oxford Area Trail Network that connects to the site. There have also been discussions that the station site could one day include a potential Amtrak stop.
Still more good news came from the Ohio Third Frontier Commission which has granted Miami University and the University of Dayton, a $400,000 grant to create a technology validation and startup fund.
The award is part of a $2.1 million state program designed to help move new technologies from Ohio businesses and universities out of the lab and into the marketplace.
The Miami University/University of Dayton Technology Validation and Start-up Fund is unique in that it involves a partnership between a private and a public institution in two JobsOhio regional markets—REDI Cincinnati and the Dayton Development Coalition.
Earlier this year, we streamlined our intellectual property management by entering into a shared services agreement with the University of Dayton, which allows us to leverage the University of Dayton’s resources. This new funding from the Ohio Third Frontier commission enhances this partnership by expanding the universities’ reach into tech validation and startups. Successful technology validation and startup funding will result in increased commercialization, as well as licenses to existing Ohio companies.
This will be very beneficial as we mine the patent portfolio of the Air Force Research Laboratory.
Overall Page 40 of 53 Attachment Page 3 of 16 Attachment E Prior Minutes June 22, 2018
This award is very good news, and illustrates the importance of innovation to ensure a successful future in higher education.
Speaking of awards, I was privileged to attend the Advancement Awards Banquet a couple of weeks ago, where many deserving alumni and special friends received 12 awards. Of special note was the John E. Dolibois Award presented to an alumna or alumnus who has served Miami University in a distinctive fashion over many years. While many alumni around the world serve Miami every day, an uncommon few demonstrate continuous and meritorious service. Named in 1984 for Ambassador John E. Dolibois the class of 1942. This year’s awardee was one of our own, Chair Emeritus Donald L. Crain who is most deserving.
I look forward to representing the Board of Trustees and seeing all of the graduates on Saturday in Oxford and at our Regional Campus ceremony on Sunday.
Thank you everyone, that concludes my remarks.
Love and Honor.
Reports, Ordinances and Resolutions
President’s Report
President Crawford provided information on campus updates, Miami achievements and news, national visibility, faculty updates, and elevating diversity and inclusion.
President Crawford’s presentation is included as Attachment D.
Report of the Chair of University Senate Executive Committee (Attachment E)
Dr. Terri Barr, FY2019 Chair of the Senate Executive Committee, updated the Board on recent meetings of the University Senate, and provided a written summary.
Chair Ridenour thanked her for her report and stated that he understood the Provost is working with the Executive Committee and University Senate to address the issues raised in SR18-11 and SR18-12.
The Senate written report is included as Attachment E.
Report of the Student Body President (Attachment E)
Maggie Callahan, Student Body President, updated the Board on a recent review of the Code of Love and Honor, and the changes proposed for consideration. Although Student Body President Elect Meaghan Murtagh could not attend, Maggie provided an introduction of Ms. Murtagh for the Board.
Overall Page 41 of 53 Attachment Page 4 of 16 Attachment E Prior Minutes June 22, 2018
She thanked the Board and stated how honored she was to serve as Student Body President.
The proposed draft revision to the Code of Love and Honor is also in Attachment E.
Academic and Student Affairs Committee
Report of the Committee Chair
Committee Chair Terry Hershey relayed the following information:
The Academic and Student Affairs Committee met yesterday in the Wilks Conference Center on the Hamilton Campus. During the meeting, two resolutions were considered.
The Committee received written reports from the University Senate and from student leaders. The Committee heard from the Provost, the Senior Vice President for Enrollment Management and Student Success, and from the Vice President for Student Affairs. The Committee received presentations on several topics, and also reviewed written reports, which will be available in the meeting’s minutes.
The Provost, Senior Vice President Kabbaz, and Vice President Brownell, led an integrated dialogue on Academic Degrees, Programs, and Services. They informed the committee about curricular reforms, processes, and quality assurance. They also highlighted support efforts and programs, such as career-planning workshops, internship and career fairs, our libraries, and service learning and engagement. In addition, several questions were posed, such course enrollment and what determines course demand – factors such as majors, minors, and the Miami plan.
Vice President Brownell then updated the committee on student matters, including staffing in the area of student wellness.
The Director of Student Counseling Services, Dr. Ward, then updated the Committee on the status of counseling services. He explained the upward trend in students seeking mental health services, which is now at approximately 20-25% of young adults. The Committee learned that increased staffing has allowed a reduction in the wait time for on-going counseling, but that Miami lags in the availability of a psychiatrist, however he reported Tri Health has added a Nurse Practitioner, who is assisting with medication.
Senior Vice President Kabbaz then provided an update on Enrollment Management and Student Success, followed by Assistant Vice President Susan Schaurer updating the Committee on Admissions. AVP Schaurer reported increased applications, admissions and confirmations for Ohio residents and domestic students of color, but decreased numbers for domestic non- resident and international students. Total confirmations where over 4,000, exceeding the goal for fall 2018.
Provost Callahan then discussed two resolutions for consideration today; a new degree in
Overall Page 42 of 53 Attachment Page 5 of 16 Attachment E Prior Minutes June 22, 2018
Applied Biology, and the acceptance of three reports to the State; the Completion Plan, Promotion and Tenure Policy, and Textbook Policy. The Committee unanimously recommended approval of these resolutions today.
The College of Liberal Arts and Applied Science hosted the meeting, and the committee received an update by Dean Cathy Bishop-Clark, followed by highlights of the Commerce and Nursing programs.
The meeting concluded with Dean Bishop-Clark leading the Committee on a tour of the Hamilton Campus.
Thank you, that concludes my report.
Resolutions (Attachment F)
Note: All Academic and Student Affairs Committee resolutions, and any supporting materials, are included as Attachment F.
Bachelor of Science Degree in Applied Biology
Provost Callahan spoke in support of the resolution. Trustee Shroder then moved, Trustee Robinson seconded, and by voice vote, the resolution was unanimous approved.
RESOLUTION R2018-40
WHEREAS, University Senate on March 12, 2018 passed SR 18-06, endorsing a degree, Bachelor of Science, with a major in Applied Biology, College of Liberal Arts and Applied Science.
NOW THEREFORE BE IT RESOLVED, that the Board of Trustees hereby approves the establishment of a Bachelor of Science, with a major in Applied Biology, within the College of Liberal Arts and Applied Science.
The resolution is included in Attachment F.
Reports to the State of Ohio
Provost Callahan spoke in support of the resolution. Trustee Pascoe then moved, Trustee Robinson seconded, and by voice vote, the resolution was unanimous approved.
RESOLUTION R2018-41
BE IT RESOLVED: that the Board of Trustees hereby accepts the attached revisions to the Promotion and Tenure Policy, the Completion Plan Update Report, and the revision to the Textbook Policy, and directs the Provost and Executive Vice President to submit the documents to the Ohio Department of Higher Education.
Overall Page 43 of 53 Attachment Page 6 of 16 Attachment E Prior Minutes June 22, 2018
The resolution is included in Attachment F.
Finance and Audit Committee
Report of the Committee Chair
Committee Chair John Altman relayed the following information:
Mr. Chairman and Members of the Board of Trustees:
The Finance and Audit Committee met yesterday at the Marcum Conference Center. The Committee considered two ordinances and three resolutions and received several reports at the meeting. All of the ordinances and resolutions are recommended for approval later in this meeting.
Each spring the Committee meets with the University’s independent auditors to review the audit plan for this year’s audit engagement. The discussion with the independent auditors covered several routine aspects of the audit. It is expected that the auditors will present the resulting financial statements and reports at the Committee’s fall meeting.
The Committee also met yesterday with the University’s chief internal auditor to review the audit activity from the past year. While the internal audit department at Miami is small, much was accomplished this past year. Barbara Jena and her staff are to be congratulated on their excellent work.
The Committee received two additional presentations at yesterday’s meeting. Annually, the University’s chief information officer reviews with the Committee the state of technology at the University. Pete Natale and his team updated the Committee on their progress this past year and on some of the challenges associated with a rapidly changing technology landscape. I want to take this opportunity to thank Mr. Natale for the fine work that has been accomplished during his tenure as CIO and to offer our best wishes on his upcoming retirement.
The Committee also received its annual report on the condition of university facilities. While we continue to make very good progress in addressing our aging facility issues and our overall facilities condition index score is within our policy range, many essential buildings have gone decades without major improvements. The Committee’s attention to facility issues at every meeting helps to ensure that the state of Miami’s facilities continues to be an asset in supporting learning and research activities and in the recruitment of future students. The two resolutions in support of the second phase of the Pearson Hall renovation are consistent with both our commitment to having well maintained and safe facilities but also facilities that are keeping pace with changing pedagogical and research needs.
The Committee considered one additional resolution yesterday for the creation of two new quasi-endowments funded by unrestricted bequests. This resolution was unanimously supported at yesterday’s meeting.
Overall Page 44 of 53 Attachment Page 7 of 16 Attachment E Prior Minutes June 22, 2018
Each spring as the academic year concludes, we must finalize the planning for the new academic year. This involves approving all fees and a budget to guide how financial resources are to be allocated for the new year’s academic and operational needs and priorities. Earlier this year, most tuition and fees were formally adopted for this fall. At yesterday’s meeting, a single new course fee was presented for approval, and the Committee recommends its adoption later in the meeting.
Most of yesterday’s meeting was spent discussing the budget ordinance and its implications for next year and the future. While we celebrate the recruitment of another large, diverse and academically talented class, the financial reality the University is facing is that the sources of financial support for next year will decline from this year. I do not have to tell you how difficult a financial picture we are facing when fewer resources will be available to provide the educational experience this new class and our existing students deserve. For now, our past effectiveness in managing financial resources makes it possible to present for your approval a balanced budget that includes a salary increase for next year. However, new revenue initiatives and increased productivity must occur if this is to continue for future budgets. For almost all of higher education and for Miami, the days of “education as usual” are rapidly disappearing. The sooner we recognize the need for constant innovation in delivering our mission and the services that support our mission, the sooner our future success will be assured.
Mr. Chairman, that concludes the report for the Finance and Audit Committee.
Ordinances and Resolutions (Attachment G)
Note: All Finance and Audit Committee Ordinances and Resolutions, and any supporting materials, are included as Attachment G.
Local Administration Competency Certification Program
Senior Vice President Creamer spoke in support of the resolution. Trustee Collins then moved, Trustee Shroder seconded, and by voice vote, the resolution was unanimous approved.
RESOLUTION 2018-42
WHEREAS, the 132nd Ohio General Assembly enacted H.B. 529 which appropriates $20,723,586 to Miami University for capital improvement projects for the 2019-20 biennium; and
WHEREAS, the Local Administration Competency Certification Program allows institutions of higher education to administer state-funded capital facilities projects pursuant to section 3345.51 of the Revised Code without the supervision, control, or approval of the Ohio Facilities Construction Commission; and
WHEREAS, the University maintains its desire to participate in the Local Administration Competency Certification Program, and administer its own capital facilities projects;
Overall Page 45 of 53 Attachment Page 8 of 16 Attachment E Prior Minutes June 22, 2018
THEREFORE, BE IT RESOLVED: that the University is authorized to participate in the Local Administration Competency Certification Program; and
BE IT FURTHER RESOLVED: that the appropriate University officials are directed to take all necessary steps to accomplish that purpose, including, without limitation, giving written notice to the Ohio Department of Higher Education pursuant to R.C. 3345.51 (A) (2), of the Board’s request to administer a capital facilities project within sixty days after the effective date of the section of an act in which the General Assembly initially makes an appropriation for the project; and
BE IT FURTHER RESOLVED: that pursuant to the requirement set forth in R.C. 3345.51(A) (3), the University intends to comply with section 153.13 of the Revised Code and the guidelines pursuant to section 153.16 of the Revised Code, and all laws that govern the selection of consultants, preparation and approval of contract documents, receipt of bids, and award of contracts with respect to the applicable project; and
BE IT FURTHER RESOLVED: that pursuant to the requirement set forth in R.C. 123.24 (D)(6), the University agrees to indemnify and hold harmless the State and the Ohio Facilities Construction Commission for any claim of injury, loss, or damage that results from the University’s administration of a capital facilities project; and
BE IT FURTHER RESOLVED: that pursuant to the requirement set forth in R.C. 123.24 (D) (5), the University will conduct biennial audits of the University’s administration of capital facilities projects in accordance R.C. 3345.51(C); and
BE IT FURTHER RESOLVED: that pursuant to the requirement set forth in R.C. 123.24 (D) (2), the University will select new employees to participate in the Local Administration Competency Certification Program as necessary to compensate for employee turnover.
Pearson Hall Phase II
Senior Vice President Creamer spoke in support of the resolution. Trustee Bhati then moved, Trustee Collins seconded, and by voice vote, the resolution was unanimous approved.
RESOLUTION R2018-43
WHEREAS, the Pearson Hall Phase Two Renovation project completes the installation of new mechanical, electrical, data, and fire suppression systems, safety and functional improvements to teaching and research labs, and modernization of classroom and collaborative learning spaces; and
WHEREAS, Miami University has determined that reduced costs from speed of implementation, improved constructability, and coordination may be gained by utilizing the Design Build project delivery method; and
Overall Page 46 of 53 Attachment Page 9 of 16 Attachment E Prior Minutes June 22, 2018
WHEREAS, Miami University has identified state and local funds in the amount of $30,000,000 for the Pearson Hall Phase Two Renovation project; and
WHEREAS, the receipt of the Guaranteed Maximum Price (GMP) is planned for June 2018; and
WHEREAS, the Board of Trustees desires to award a contract to the most responsive and responsible Design Build firm;
NOW, THEREFORE, BE IT RESOLVED: that the Board of Trustees authorizes the Senior Vice President for Finance and Business Services and Treasurer, in accordance with all State guidelines, to proceed with the award of contract for the Pearson Hall Phase Two Renovation project with a total project budget not to exceed $30,000,000.
Executive Summary For the Pearson Hall Phase Two Renovation May 17, 2018
This project is for the second phase of the renovation of Pearson Hall for the biological sciences including the Departments of Biology and Microbiology. This phased, occupied renovation will address deferred maintenance issues with the facility through the installation of new and efficient mechanical, electrical, data, and fire suppression systems. The project also includes lab safety improvements. The project will be occupied during renovations.
Phase Two (final phase) is expected to complete the remaining 50% of the necessary heating, cooling, and lab exhaust systems; replace electrical switchgear, modernize the public areas, and modernize the balance of the classrooms, class labs and research laboratories.
Project Component: Budget: Funding Source: Est. Design and Administration: $2,675,000 Local Funds Est. Cost of Work: $23,500,000 State Funds / Local Funds Est. Owner’s Costs: $1,650,000 Local Funds Est. Contingency: $2,175,000 Local Funds
Total: $30,000,000 State Funds ($19,523,586) / Local Funds
Quasi-Endowments
Senior Vice President Creamer spoke in support of the resolution. Trustee Shroder then moved, Trustee Pascoe seconded, and by voice vote, the resolution was unanimous approved.
Overall Page 47 of 53 Attachment Page 10 of 16 Attachment E Prior Minutes June 22, 2018
Resolution R2018-44
WHEREAS, from time to time, Miami University accumulates financial balances through the receipt of large, unrestricted gifts and the prudent management of resources; and
WHEREAS, the Provost, the Deans, the Senior Vice President for Finance and Business Services, and the Vice President for Advancement periodically identify a portion of these funds that can be utilized to create quasi-endowments to establish a source of long-term funding for strategic initiatives; and
WHEREAS, Resolution R2015-45 established the Miami University Quasi- Endowment Policy; and
WHEREAS, the Miami University has received $1,101,956.04 in unrestricted proceeds from the estate of W. Paul Zimmerman; and
WHEREAS, the Miami University has received $139,610.39 in unrestricted proceeds from the estate of William J. Saunders, Jr.; and
WHEREAS, The Vice President for Advancement has recommended that the proceeds of the Zimmerman and Saunders unrestricted gifts be quasi-endowed, with the annual distributions to be used for the general needs of Miami University as determined annually by Miami University’s President, Provost, Senior Vice President for Finance and Business Services, and Vice President for Advancement; and
WHEREAS, the Provost and the Senior Vice President for Finance and Business Services of the University, with the concurrence of the Finance and Audit Committee, has recommended approval of this plan;
NOW, THEREFORE BE IT RESOLVED that the Board of Trustees approves the creation of the W. Paul Zimmerman quasi-endowment; and
BE IT FURTHER ESOLVED that the Board of Trustees approves the creation of the William and Jane Saunders quasi-endowment; and
BE IT FURTHER ESOLVED that the annual distributions of the W. Paul Zimmerman Fund and William and Jane Saunders Fund be used for the general needs of Miami University as determined annually by Miami University’s President, Provost, Senior Vice President for Finance and Business Services, and Vice President for Advancement; and
Overall Page 48 of 53 Attachment Page 11 of 16 Attachment E Prior Minutes June 22, 2018
Miscellaneous Fees 2018-19 Academic Year
Senior Vice President Creamer spoke in support of the proposed Ordinance, explaining that with the Miami Promise, new fees will affect only the incoming, fall 2018 Cohort.
Trustee Robinson then moved, Trustee Collins seconded, and by roll call vote, the ordinance was unanimously approved, with eight voting in favor and none opposed.
ORDINANCE O2018-06
WHEREAS, Miami University (University) is committed to providing affordable access to high quality education and services for its students; and
WHEREAS, the University is authorized by the Ohio General Assembly to charge user fees for services not generally covered by tuition and not uniformly assessed to all students; and
WHEREAS, predictability in the cost of higher education is an important step to improving the affordability for students and families, and
WHEREAS, the University has adopted the Miami University Tuition Promise in accordance with Ohio Revised Code 3345.48 and is recommending separate miscellaneous fee schedules for each cohort under the Tuition Promise program while students not covered by the Tuition Promise will be assessed miscellaneous fees based on the historic fee schedule as modified by this ordinance;
NOW, THEREFORE, BE IT ORDAINED: that the Board of Trustees approves the attached changes to miscellaneous fees for academic year 2018-19 for students matriculating prior to Fall 2016, the Fall 2018 Miami Tuition Promise cohort, and future cohorts except as otherwise specified. The fees apply to all campuses, except as otherwise specified; and
BE IT FURTHER ORDAINED: that fees adopted by prior action of the Board are hereby reauthorized at their previously adopted rates; and
BE IT FURTER ORDAINED: the miscellaneous fee schedule established for students enrolling for the first time in academic year 2018-19 will remain in effect for four years according to the provisions of the Miami University Tuition Promise; and
BE IT FURTHER ORDAINED: that fees will be assessed based on the previously adopted and attached miscellaneous fee schedule rates. In case of dispute, fees must be paid in full unless specific arrangements have been authorized in writing by the Senior Vice President for Finance and Business Services or his designee; and
BE IT FURTHER ORDAINED: that the Senior Vice President for Finance and Business Services is authorized to approve changes in the fees stated above to align with the provisions the enacted biennial operating budget and to approve new fees consistent with those stated above
Overall Page 49 of 53 Attachment Page 12 of 16 Attachment E Prior Minutes June 22, 2018
subject to annual confirmation by this Board.
Appropriation Ordinance 2019 (REVISED)
Senior Vice President Creamer spoke in support of the proposed Ordinance, explaining that it included the adjustment mentioned at the start of the meeting.
Trustee Bhati then moved, Trustee Pascoe seconded, and by roll call vote, the ordinance was unanimously approved, with eight voting in favor and none opposed,
ORDINANCE O2018-07
BE IT ORDAINED: by the Board of Trustees that the Operating Budget for Fiscal Year 2018-19, as presented at this meeting, be and it hereby is enacted with the following current expenditures and transfers for the major purposes as follows:
General Fund Expenditures: Salaries ...... $214,390,122 Staff Benefits ...... 72,377,198 Scholarships, Fellowships and Student Fee Waivers ...... 104,613,433 Less: Scholarships Treated as Discount……………………………………………………….………….(87,330,961) Graduate Assistant Fee Waivers ...... 19,981,003 Utilities ...... 14,679,724 Other Expenditures ...... 44,406,276 Subtotal General Fund Expenditures ...... $383,116,795 General Fund Transfers: Debt Service (mandatory transfer) ...... 8,138,716 General Fee and Other (non-mandatory transfers) ...... 72,002,941 Total General Fund ...... $463,258,452 Designated Fund ...... $52,044,338 Restricted Fund ...... $61,234,737 Auxiliary Enterprises: Expenditures ...... $115,975,851 Debt Service (mandatory transfer) ...... 50,987,269 Other Transfers ...... 23,969,215 Total Auxiliaries ...... $190,932,335 TOTAL ...... $767,469,862
Provided that the above appropriations include aggregate merit and salary improvement increases for faculty and unclassified staff equal to two percent (2.0%) effective with the beginning of the appointment year; and Provided further that an additional one percent (1.0%) is included for faculty and
Overall Page 50 of 53 Attachment Page 13 of 16 Attachment E Prior Minutes June 22, 2018
unclassified staff salaries for making improvements in the market competitiveness of salaries; and Provided further that a pool of funds amounting to one percent (1.0%) is included for classified staff salary enhancements and adjustments to scale; and Provided further that additional institutional funds are set aside for student financial aid, selected support (non-personnel) budgets, and debt service; and Provided further that the Senior Vice President for Finance and Business Services and Treasurer, with the approval of the President, may make such adjustments as are necessary in the operating budget within the limits of available funds or within the limits of additional income received for a specific purpose (“restricted funds”).
The ordinance is included within Attachment G.
Student Trustee Reports
Chair Ridenour welcomed Student Trustee Cremeans, then the Board received a report from Student Trustee Hallie Jankura, who relayed:
As finals week comes to a close, fewer students are flooding King Library and more are strolling around campus in caps and gowns taking photos under Upham Arch, on the Seal, in their favorite academic halls, and around this beautiful spring campus. It’s hard to think that in just a year I’ll be getting ready to leave Miami!
The end of the semester is a time of reflection for all. As for us students, there’s a lot to reflect on. This was a busy semester!
On the top of the list of priorities for students sits the need for attention on diversity and inclusion. Many students have been working to ensure that all students are becoming more well- rounded adults who understand their biases and will soon be ready to dive into a diverse workforce.
On April 28, Elevate: the Diversity and Inclusion Career Symposium hosted students, faculty, and professionals for a morning of conversation and networking. The goal? To equip participants with the skills necessary to work in any environment. They heard from panelists who lead in diversity efforts at Tri-Health, Cintas, and Fifth Third Bank. Round table discussions provided opportunities for conversation about bias, diversity in the workplace, and tips to handle new work environments. The event was a hit for all who had the opportunity to attend, and they hope that it will be offered again next year.
Also on the 28th, Spectrum, The Office of Diversity Affairs, The Office of Community Engagement and Service, Oxford Area PFLAG, and Not in Our Town collaborated to host a community Pride Parade. Students and community members met at the Seal and marched uptown. The event allowed LGBTQ+ students and allies to band together in celebration of different identities.
Overall Page 51 of 53 Attachment Page 14 of 16 Attachment E Prior Minutes June 22, 2018
On April 25, the 24th Annual Undergraduate Research Forum highlighted the work of over 550 undergrad students. After working countless hours researching topics, the forum was an opportunity to celebrate and recognize everyone’s accomplishments and for students to share their findings. The opportunity to collaborate with faculty as early as a student’s first year is part of what makes the Miami student experience unique. Topics covered a wide array of student passions. To name just a few, presentations were given on An Overview of Spectral Phasor Analysis in Biomedical Optics (Max Kreider and Andy Rodriguez), Age Friendliness in Oxford: Communication, Community, and Service (Sundeep Vaswani and Bobbie Hall), and Cooperative Businesses: The Challenges of Recruiting Millennial Talent (Joslyn Andrews and Caitlin Sifuentes).
There’s also lots of activity happening on our regional campuses, as we learned during yesterday’s Academic and Student Affairs Committee Meeting and tour of the Hamilton campus. Megan and I had the opportunity to stick around for a bit to chat with the three students who joined us for lunch. They shared their Miami experiences and highlighted hope for strengthening connections between the regionals and Oxford campus. The concerns of regional students greatly revolve around socioeconomic status and opportunities for a Miami student experience that may be limited as a result. It is our hope to bring together students from Oxford and the regionals to co-host events and foster discussion about inclusion.
The business fraternity Pi Sigma Epsilon, PSE, was honored with the Lewis F. Gordon Top Chapter Award at the PSE National Convention in San Diego. This is the highest honor given to one of 70 nationwide chapters. The co-ed fraternity focuses on developing skills in marketing and sales, providing students with real-world experience working with businesses like BMW, Hasbro, Target, and Proctor & Gamble. The goal of Miami’s chapter is to have 100% of its members employed by graduation. This award is a part of the tradition of excellence for Miami’s PSE chapter, which has received 11 Top Gold Chapter awards in the past 16 years.
For one of the offered Media and Culture capstone courses, students in MAC 414-B formed Capstone Pictures and created a film that reflects a continued interest in mental health awareness. “The Suicide Man” was a 20 minute short film made over the course of the semester, with an allegorical narrative that considers what would happen to a depressed man who was unable to die, and the ways that he learns to positively impact the people around him. Before the film premiered, a faculty member who led the program and the student director of the film stood up and spoke with great passion not only on the production of the film, but its messages and themes and their timeliness to the current age. Once the film had concluded, several members of the audience mentioned in the Q&A that they believed it could and should be shown to support groups. Not only did this capstone allow students to gain on-set film production experience, but it also sparked conversation about mental health stigmas and what resources are available on Miami’s campuses.
In just a few days, students will be heading out of the red brick buildings and out across the globe. Miami students are traveling to places like China to study business and to the Czech Republic to teach English and more still are taking on internships with top-rated companies and firms throughout the United States. Wherever they’re heading for the break, one thing is certain - those returning in the fall are excited and ready to continue making change to Miami’s campus,
Overall Page 52 of 53 Attachment Page 15 of 16 Attachment E Prior Minutes June 22, 2018
culture and community.
On the behalf of the student body, I’d like to welcome Megan Cremeans and Zach Haines to the Board of Trustees. I look forward to working with you both!
That concludes my report.
Other Business
Recognition of Colin McDonough
The student assistant for Presidential Event Planning, Colin McDonough was honored by the Board with a certificate of appreciation, which stated:
Colin is commended for his dedicated service to Miami University. Through his support for countless University events, he contributed significantly to the experience of the entire Miami Community. Colin’s commitment is an example to all, and is in keeping with the highest traditions of Miami University.
Written Reports
Tom Herbert, Vice President for Advancement submitted a written report which is included as Attachment H.
Executive Session
Trustee Collins moved, Trustee Bhati seconded, and by unanimous roll call vote, with eight voting in favor and none opposed, the Board convened to Executive Session to consult with counsel, and review pending litigation; as provided by the Open Meetings Act, Ohio Revised Code Section 121.22.
Adjournment of Meeting
Following Executive Session, the Board returned to public session, and with no other business to come before the Board, there was a motion, second, and by unanimous voice vote, the Board adjourned at 12:00 p.m.
T. O. Pickerill II Secretary to the Board of Trustees
Overall Page 53 of 53 Attachment Page 16 of 16