FINANCIAL PLAN

FISCAL YEARS 2021-2023 TABLE OF CONTENTS

3 Executive Summary 4 Mission 6 Governance 9 CFO Outlook

Operating and 10 Enrollment Plan 23 Capital Budgets 38 Philanthropy 40 The Endowment

2 THE FINANCIAL PLAN FY 2021 - 2023 EXECUTIVE SUMMARY

I am pleased to present our updated three- epoch of belief, it was the epoch of incredulity, it was year Financial Plan. The plan reflects our shared the season of light, it was the season of darkness, it commitment to ensure we guarantee and celebrate was the spring of hope, it was the winter of despair.” Regis University’s 150th anniversary in 2027 and We are wiser. Our faith has been tested and continue to deliver on our promise of a distinctive strengthened. We see the light through the darkness Jesuit, Catholic, and mission-focused education. every day. We hold steadfastly onto hope. There is In many ways, a university is like a small city. much to celebrate. We have integrated five colleges Of course, our deans and faculty are our most into three and developed curricula to meet the direct link to our students. On any given day — on demands of the future marketplace and needed skills. campus and virtually — there are many complex We have invested in campus improvements to the and unique operations, functions, and staff that benefit of students and employees alike. We have come together for the same purpose and common invested in technology to secure our infrastructure, good. We aspire daily to do more and to deliver on our intellectual property, and to deliver online our core business and our core promises. Whether learning. We have honored service and tenure by facilities management or library services, whether providing an incentivized, voluntary retirement student success coaches or advancement, whether program. We have modernized our Regis University accounting or athletics, we all collaborate to ensure a website to better attract and retain students. return on our investments — and yours — at all levels. Our updated Mission Statement will permeate our On top of our beautiful complexity, we have had strategic planning, our actions and our behaviors. unparalleled events to deal with in framing our As a Jesuit Catholic university, Regis seeks to build a financial plan. The cyber event in August 2019, was more just and humane world through transformative devastating but not defeating. Regis University’s education at the frontiers of faith, reason and culture. response to COVID-19 was swift and our transition to We have a new perspective on what are our worst of online learning — a space we mastered decades ago times and know the best of times are yet to come. — was seamless. We are doing all we can to support our faculty and student health professionals as they I recommend that the Board of Trustees approve the prepare for and go into the front lines. FY 2021 unrestricted operating and capital budgets.

If you will indulge a forever English professor, Charles Gratefully, Dickens wrote in “A Tale of Two Cities,” “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the

THE FINANCIAL PLAN FY 2021 - 2023 3 MISSION

AS A JESUIT CATHOLIC UNIVERSITY, REGIS SEEKS TO BUILD A MORE JUST AND HUMANE WORLD THROUGH TRANSFORMATIVE EDUCATION AT THE FRONTIERS OF FAITH, REASON AND CULTURE. Mission

SERVICE TO THE MISSION: CURA PERSONALIS AND CURA APOSTOLICA

As a Jesuit Catholic university, Regis seeks to build a “Cura apostolica was never about building up more just and humane world through transformative institutions,” says Jesuit historian Fr. John Padberg. education at the frontiers of faith, reason and culture. “It was and is about seeing `the work’ as the people engaged in it and the people served by it.” In the Inspired by the vision of Ignatius of Loyola, the words of Dr. Stephanie Russell, Vice President of the Ignatian character of Regis University is a vision AJCU, “While we need the practical means to sustain of education of the whole person in relation to the and grow our institutions, our core work is flesh and common good, asking, “How ought we to live?” As blood, not bricks and bitmaps.” our new mission statement affirms, we are called together across all the university disciplines to help Our people are the heartbeat of the Regis educational bring reconciliation and justice to a broken world and apostolate, and the financial plan is the concrete transformation to a suffering ecosystem. embodiment of our commitment to Mission. An Ignatian way of discernment prayerfully asks: Do we Jesuit education is also a call to the future — always have all the necessary data? Have we heard from adapting, imagining new forms toward the realization those who will be most impacted by our decisions? of the magis. What unifies Jesuit education across the How do we align our budgetary resources with the generations is not uniformity or mere repetition but number of students that we currently serve, and look a faith-informed way of proceeding that is passed on to the future, with the apostolic concerns prioritized from person to person, from heart to heart. To say it by the global Society of Jesus? another way, care for the person (cura personalis) and care for the mission and flourishing of the institution Listening deeply to one another and discerning the (cura apostolica) are two sides of a single fabric, call of the Spirit in our world, we rededicate ourselves, both integral to Regis’ effectiveness as a “social for the greater glory of God, to the work of the magis. projection.” As difficult as it can be to keep these values in healthy balance, we must take care not to drive a wedge between them.

THE FINANCIAL PLAN FY 2021 - 2023 5 GOVERNANCE Governance

UNIVERSITY BUDGET COMMITTEE

For the Academic Year 2019-2020

The President has put in place a more streamlined approach to building the MEMBERS University’s budget and developing its multi-year financial plan. The committee, Salvador D. Aceves Roberta Mancuso known as the University Budget Committee (UBC), is advisory to the President Senior Vice President and Professor, Social Sciences, and reflects a commitment to a shared role in institutional governance. Guiding Chief Financial Officer CCLS principles that define the committee structure include a meaningful level of Roby Blust Stephanie Morris faculty participation. Vice President, Associate Vice President, Enrollment Management Financial Affairs Regis University’s committee has 12 voting members. The committee’s charge is to Jay Campisi Jerry Perez develop and recommend a budget and multi-year financial plan to the President Associate Professor Director, Infrastructure, through his Cabinet. The committee is composed of the following members: and Chair of Biology, Operations and Security, Regis College Information Technology • Six Academic Affairs representatives of up to four faculty and two deans. Services KariAnne Cvencek One of the faculty member representatives is appointed to the Board’s Assistant to the VP Shari Plantz-Masters Resource Planning Committee. Each Academic Affairs appointment is for Advancement Academic Dean for a two-year term. Members may be reappointed for another term. and Professor, Michael Fisher CCIS Professor, Division • Six staff members. With the exception of the CFO and Provost, each staff of Health Services Robert Spagnola appointment is for a two-year term. Members may be reappointed Education Associate Professor, for another term. Anderson College Janet Houser of Business Provost Tuition and fee recommendations are submitted to the President through the Brent Vogel Cabinet for review and approval. The multi-year financial plan, including the Senior Director of one-year budget, is developed and submitted to the President through the Partner Engagement, Admissions Cabinet for review and approval.

THE FINANCIAL PLAN FY 2021 - 2023 7 Governance

COMMITTEE MEMBERS’ PERSPECTIVE

Roberta Mancuso Jerry Perez Professor of Applied Psychology Director of Infrastructure Operations and Security College of Contemporary Liberal Studies Information Technology Services

As a member of the UBC, I have the privilege of As a member of the University Budget Committee (UBC), simultaneously examining the 30,000-foot and my participation has afforded me insight into the University’s the 3-foot views of the university. Aside from the process of developing and establishing a multi-year financial warm collegiality and distinguished expertise of its plan. The experience has given me a more comprehensive members, the element of the UBC that has been most and holistic view of how resources are distributed across the refreshing is the degree to which Jesuit discernment institution. Our meetings and members have displayed their contributes to the decision-making process. My commitment to the UBC charter while ensuring decisions experiences as a faculty member on the UBC have are aligned with our Jesuit values and mission. The planning given me a significantly more informed and balanced process and the makeup of the committee of both faculty and perspective of our university budget — one that I staff have allowed us to take into account multiple voices when share with my Regis colleagues. While the common discussing revenue and spending matters. theme is Regis’ financial well-being, our committee With my first year of service coming to close, I look forward meetings create an opportunity to infuse the Regis to year two and serving alongside my colleagues to securing Mission into nearly every budgetary decision. Such an a financial plan that can be used as an instrument to guide undertaking fortifies the future of our institution. our leadership as they look to achieve financial stability while working toward institutional objectives and goals.

8 THE FINANCIAL PLAN FY 2021 - 2023 Governance

CFO OUTLOOK

There is no better time to test your plans and your planning historic unemployment lows. Then, our world significantly process than during a time of crisis. Regis University changed with the arrival of COVID-19. Fortunately, back in the experienced two such crises in fiscal year 2020. The spring of 2019, we initiated a series of institutional changes cyberattack, in August 2019, was devastating and tested our designed to align our educational capacity with the number of resilience. As we emerged from our rebuilding and recovery students we serve. This work established three pillars for the efforts, we were confronted with COVID-19. Fortunately, development of the fiscal year 2021 operating budget — each Regis’ new technology platform that emerged from the representing roughly a $5M adjustment. cyberattack, helped position the institution to quickly and The first pillar adjusted the enrollment plan. Resetting the seamlessly adapt and respond to full online learning. Yet, enrollment goals to better reflect market demand in concert there is a more in-depth story that helped prepare us for this. with strategic pricing, led to a $5M dollar reduction in net Five years ago, we adopted a three-year planning cycle tuition revenue. The second pillar focused on funding a $2.5M that became part of Regis’ overall financial architecture. A compensation and benefits pool — a critical component of critical byproduct of this transition was our ability to gain our total rewards strategy. The other $2.2M funded debt a better view and understanding of emerging trends. This service from the 2018 privately placed Regis notes, and new Salvador D. Aceves fiscal framework provided a home for our forecasting and depreciation from the recently renovated student center and Senior Vice President and predictive analytic tools that helped support and guide DeSmet Hall — a freshmen dormitory facility. The final pillar Chief Financial Officer, our revenue and expense planning. As I reflect on the put in place a $5M first-line defense that is able to respond to Professor of Accounting many meetings and conversations that were part of the unforeseen changes in either revenue or expenses. However, development of the enrollment plan, I am reminded of Regis’ in the end, it is important to remember that, ultimately, diverse and robust academic portfolio that educates a broad our budget is the financial articulation of our mission: As a range of traditional, post-traditional, graduate, and doctoral Jesuit Catholic university, Regis seeks to build a more just students. I recall how we witnessed several market challenges and humane world through transformative education at the unfold, ranging from changing demographics with fewer frontiers of faith, reason and culture. 18-year-olds available to begin their college education, to

THE FINANCIAL PLAN FY 2021 - 2023 9 ENROLLMENT PLAN THE ENROLLMENT PLAN

A year like no other. FY20 has been rife with challenges — cyberattack in the first part of the year, pandemic in the latter. While the university has worked to adjust and respond, the crises have created hurdles to achieving success. In spite of the challenges, Regis University achieved 94% of its FY20 revenue goal to date, a feat which is noteworthy considering what we’ve faced.

We experienced enrollment wins in FY20 namely within RHCHP — the Loretto Heights School of Nursing currently exceeding its $19M revenue target by 3.5%; Division of Counseling, Department of Health Services Education, and School of Physical Therapy each coming in ahead of their respective budgets; and although the national Pharmacy landscape is difficult, the school currently sits 33% ahead of last year on new student deposits for Fall 2020. Graduate programs in Regis College have also been stable in FY20, where Biomedical Sciences continues to be an attractive program along with the Master of Fine Arts, Master of Arts in Education, and Master of Development Practice. Each of these programs have exceeded revenue targets.

Traditional student revenue is landing just shy of its nearly $70M goal, coming in less than a half of a percentage point to targeted revenue. Definitely a win in light of the factors impacting Regis University’s enrollment.

THE FINANCIAL PLAN FY 2021 - 2023 11 Enrollment Plan

In conducting an enrollment decline root cause analysis, the following highlights External Factors some of the emerging themes: • Economy: In the first part of the year, the strong economy aligned with Internal Factors low unemployment provided challenges in recruitment in particular fields. Employees had their choice of jobs in the computer information science Cyberattack: industry — with employers prioritizing skill over degrees. Employees felt secure in their employment. We now face a stark contrast in the latter part of the • Post-Traditional Lead Generation Decline: Simply put, Regis University did not fiscal year. With mandates of business closures and self-quarantine, citizens are exist from a digital perspective post-cyberattack. In analyzing lead generation living in fear. The impact to enrollment is yet to be known. In the longer term, patterns, it is estimated that 1,988 leads were lost in our post-traditional it may drive more enrollments as individuals return for skill enhancement and undergraduate and graduate efforts — ultimately resulting in a loss of 288 new refinement. students (14.5% lead to enrollment). • National Demographic Trends: The pool of college-bound students is • Traditional Student Application Decline: The timing of the cyberattack also shrinking. With the declining birth rates, financial concerns, and questions hit the traditional student enrollment landscape hard, the critical application about the value of a college education, it is predicted that institutions of submission period for this population. The university has experienced a 17% varying sizes will struggle to meet enrollment and revenue goals. Recruiting the YTD decline in Fall 2020 traditional student applications, with the largest right mix of students who can both afford tuition and succeed in college is the decline in out- of-state applications. new imperative. • D elayed Regis.edu Launch: The cyberattack impacted progress on the web • Competition for Adult Learners: As the demographics shift, schools launch as well — which was originally slated for Fall 2019. Now, the site is slated nationwide are pivoting to add programming designed to attract the adult to launch May 1, 2020. learner. Regional state schools continue to ramp up their online, accelerated • Staff Morale and Retention: The cyberattack and delayed recovery efforts program offerings, pulling away from what has been Regis core business. negatively impacted staff morale and its overall confidence in the university. • Mega-Universities: The big just keep getting bigger. Southern New Hampshire Combine that with — at the time — a strong economy with ample job University, CSU Global, Purdue Global — these institutions are just a sampling opportunities, and Admissions experienced a significant turnover of seasoned of schools that are offering affordable programs, designed to be completed staff. With each recruiter responsible for 80-100 new enrollments annually, quickly. These schools are able to invest upwards of 30% of their revenue even losing one good employee makes an impact. In total, 14 recruiters budgets into marketing. It’s negatively impacting the university’s market share. resigned their positions in FY20, a turnover rate of 33%.

Reduced Budgets:

• Reduced Lead Generation Budget: As complexity and competition increases, it is untenable to expect enrollment growth — or even enrollment stabilization — when lead generation budgets have declined roughly 30% over the last 3-5 years. The charge to enroll more, produce more — with less — is not working and will be even more challenging moving forward.

• L ack of Brand Campaign Budget: The lack of a comprehensive, effective brand campaign — which is a result of a reduced budget — creates for lesser awareness in market overall, which ultimately negatively impacts lead generation efforts.

12 THE FINANCIAL PLAN FY 2021 - 2023 Enrollment Plan

Finding Our Way Forward

Our way forward is constructed via the intersection of marketing, technology, • G ain operational efficiencies and insights by transitioning our CRM from Recruit and intelligence – resulting in sophisticated lead generation strategies. to industry-leading Salesforce, a far more robust and integrated CRM platform that will provide powerful, connected products for improving our marketing • F ocus on finding ways to outsmart Google and social media algorithms with and operations; this is a critical acquisition for FY21. these initiatives led by a skilled digital agency; one of those ways is through machine learning which allows data to inform bidding strategies in the live • E xpand on event marketing in our lead generation strategy; FY21 will be full of Google search platform. testing different approaches to find the right balance of events plus all other types of marketing we deploy to nurture leads faster throughout their journey. • F urther embrace personalized marketing in lead generation by effectively marketing directly to inboxes through tactics such as LinkedIn InMail. • M aximize influencer marketing tactics; we know our best leads are those referred by our current student and alumni base; this is a critical initiative • F ocus primarily on Google paid search, social media, and programmatic to advance. display, enabling fine-tuning of each channel’s strategy and implementation without diluting budget in channels that do not convert to leads; this allows The year ahead, much like the year we’re closing on, will be like no other. We must us to place focus, time and money on fewer, stronger channels. innovate. The crises we’ve faced are forcing change — change for good. It’s that momentum that carries us. • R e-evaluate speed-to-lead protocol to ensure we’re staffed and trained properly in order to reduce our response time to be competitive (e.g. competitor school reaches out within 60 seconds after lead submission vs. our 24- to 48-hour window).

THE FINANCIAL PLAN FY 2021 - 2023 13 Enrollment Plan

FY 2021-2023 Budgeted Revenue and Credit Hours (as of 3/26/20)

Bill-by Program Revenue Generation Managerial/Schedule Type Credit Generation

Ugrad Grad FY 2020 FY 2021 FY 2021 vs. FY 2020 FY 2020 FY 2021 Budget to Budget FY 2021 Budgeted to Post-Traditional Tuition Rate Tuition Rate Revenue Revenue FY 2020 Revenue Credit Hour Credit Hour Credit Hour FY 2021 vs. FY 2020 FY 2020 Anticipated Increase % Increase % and Graduate Budget Budget Variance Budget Anticipated Budget Credit Hour Variance Credit Hour Variance (average) (average) Anderson College 4.7% -1.5% $15,683,830 $12,185,590 $(3,498,240) 18,227 14,074 14,164 (4,063) 90 of Business College of Computer and 4.7% 8.7% 11,767,030 9,957,005 (1,810,025) 16,552 12,856 12,763 (3,789) (93) Information Sciences College of Contemporary -6.9% -3.2% 4,927,525 3,005,920 (1,921,605) 14,753 10,489 10,492 (4,261) 3 Liberal Studies

Regis College 5.3% 3.3% 7,080,050 7,242,610 162,560 12,509 12,650 12,108 (401) (542)

Rueckert-Hartman College for Health 4.5% 3.8% 37,532,521 38,682,220 1,149,699 44,179 44,850 44,578 399 (272) Professions Post-Traditional 76,990,956 71,073,345 (5,917,611) 106,220 94,919 94,105 (12,115) (814) and Graduate Total

Traditional (RC, 1.0% N/A 69,122,672 69,151,311 28,639 54,189 53,913 53,315 (874) (598) RHCHP, ACB, CCIS)

Summer School 1.0% N/A 361,849 493,865 132,016 592 799 716 124 (83)

TRADITIONAL TOTAL $69,484,521 $69,645,176 $160,655 54,781 54,712 54,031 (750) (681)

UNIVERSITY TOTAL $146,475,477 $140,718,521 $(5,756,956) 161,001 149,631 148,136 (12,865) (1,495)

14 THE FINANCIAL PLAN FY 2021 - 2023 Enrollment Plan

Traditional Fall First-Year Student Class Sizes Traditional First-Year Student

8000 7410 7295 6911 7000 6397

6000 5617

4903 5000 4427 4399 4288

4000 3596

3000

2000 Fiscal Year

1000 FY 2019 (actual) 508 0 FY 2020 (actual) 481 Applications Admits

FY 2021 (budget) 485

Fall Fall Fall Fall Fall FY 2022 (budget) 505 2016 2017 2018 2019 2020

(as of 3/15/2020) FY 2023 (budget) 505

THE FINANCIAL PLAN FY 2021 - 2023 15

Enrollment Plan

FY 2018 FY 2018 FY 2019 FY 2019 FY 2020 FY 2020 (goal) (actual) (goal) (actual) (goal) (actual)

Post-Traditional New Student Enrollment (as of 3/15/2020)

3331 3400

3200 2905 3000 2686 2800

2600 2299 2309 2400

2200

2000 1777 1800

1600

1400

1200 857 1000 812 811 835 798 785 776 779 760 714 647 800 629 613 521 542 600 431 464 475 448 380 304 387 360 400 258 258 172 170 115 111 200 95

0 Anderson College College of Computer *College of Contemporary *Regis College Rueckert-Hartman TOTAL of Business and Information Sciences Liberal Studies College for Health Professions *Education Programs Move from CCLS to Regis College in FY 2019

THE FINANCIAL PLAN FY 2021 - 2023 17 Enrollment Plan

FINANCIAL AID

Philosophy Behind Regis Financial Aid Types of Financial Aid For more than 140 years, Regis University has sought to make higher education There are four types of student aid: accessible to talented students from all socioeconomic backgrounds. The Office of Financial Aid assists students and their families as they apply for financial aid, • Loans: These funds must repaid either by the student or the parent, or review their financing options and make the decisions that can determine their may be forgiven in certain circumstances. Interest on loans is paid by the financial well-being for years to come. federal government (subsidized) for our students with the greatest needs until the student graduates. Examples of loans include Federal Subsidized

Financial Aid Eligibility and Unsubsidized Direct Loans, PLUS (for graduate students and/or parents of undergraduates), and alternative loans. Financial Aid is any grant or scholarship, loan or paid employment offered to help a student meet his/her college expenses. Students desiring need-based financial • Gifts: These are scholarships and grants that do not need to be paid aid must apply using the electronic Free Application for Federal Student Aid back, but often have income or academic requirements. Grants may come (FAFSA). This process determines the Estimated Family Contribution (EFC) that, from the federal or state government or Regis. Scholarships may come in addition to the Cost of Attendance (COA), is used to determine the student’s from the reallocation of Regis tuition (general funded), from annual or need. Cost of attendance includes tuition, required fees, room & board, books, endowed fundraising efforts of Regis University Advancement, or from personal expenses and transportation. The formula for determining need is: outside entities.

COA – EFC = Need • Work: Student Employment may be funded by Federal, State or University funds and to help defray the cost of personal expenses through Based on the calculated need and the student’s high school academic select on and off-campus approved employment positions. achievements (for traditional students), a financial aid award package is developed that may include scholarships, grants, loans and student employment. A student • Benefits: Educational grants awarded to eligible Regis employees or their may accept all, a portion, or none of the loans offered. dependents include Regis’ Employment Tuition Benefit (ETB), Tuition Exchange, and AJCU’s Faculty and Staff Children Exchange Program (FACHEX).

18 THE FINANCIAL PLAN FY 2021 - 2023 Enrollment Plan

Sources of Financial Aid Financial Aid Trends There are five sources of aid: • Federal: This source covers many types of • As has become the norm nationally, Regis • Federal Perkins Loans were eliminated aid including grants, loans and workstudy has become increasingly reliant on tuition- during the 2017-18 award year, affecting 161 monies, and students must fill out the FAFSA discounting strategies to enroll traditional enrolled students. Regis developed a short- to receive. Examples include the Federal Pell undergraduates. The average tuition discount term plan to support impacted students Grant, Federal Supplemental Educational for traditional students for the 2018 financial and leveraged resources from the Schneider Opportunity Grant (SEOG), Federal aid year was $18,217 on a tuition charge of family emergency loan fund. In FY19, 75 Subsidized and Unsubsidized Direct Loans, $36,460, with most of these funds coming students opted to secure a Schneider loan Federal Workstudy, Federal TEACH Grant, from tuition reallocation. With approximately totaling $214,500. among others. $1.45M in annual scholarship support from University Advancement, we have much • As our undergraduate enrollment of students • State: This is allocated to Colorado residents opportunity to lessen the reliance on internal in post traditional programs has decreased, who meet specific need-based eligibility sources of aid with a renewed commitment of so has our total number of Pell-eligible requirements. This source includes Colorado fundraising and philanthropy. students, from 1706 Federal Pell Grant State Grant, Colorado Workstudy, Colorado recipients in FY14 to 1,110 in FY19. However, Merit, Colorado Graduate Grant, and the • During FY19, 229 traditional students with the numbers of traditional students who College Opportunity Fund (COF). an EFC greater than the Cost of Attendance are Pell eligible has been increasing since received more than $4M in Regis awards. FY14. In FY19 Regis enrolled 565 traditional • Institutional: Regis reallocates monies from Additionally, 289 students who did not fill students who were Pell eligible, up from 548 the general fund to support merit and need- out a FAFSA received more than $5.5M in in FY18. In FY19 a full time student with a 0 based scholarships, student employment, Regis-funded awards. EFC received a full Pell award of $6,095. required matching funds to Federal financial aid awards, and educational benefits awarded • As we have become more engaged with the • In FY19, 236 employees, spouses, to Regis employees, their dependents, and Colorado Department of Higher Education, dependents and affiliate faculty utilized our colleagues in AJCU. we have been able to secure more State employee tuition benefits, totalling funding, growing from $3.4M in 2015-2016 to approximately $2.82M. • University Advancement: Raises external $4.4M in 2018-2019. However, with a decline philanthropic funds for both endowed and of Pell-eligible Colorado residents, this Summary: Regis is grappling with decisions annual scholarships. number is expected to decrease. to increase enrollment of all students, while ensuring we leverage our limited • Other: Scholarships that students bring • Overwhelmingly, students continue to resources wisely to do so. With current and with them from external organizations finance their Regis education with loans. anticipated changes in Federal and State and foundations, and alternative loans are The amount of loans disbursed to students awarding, Regis will be wrestling with our included in this category. has steadily decreased from a peak of philosophies regarding mission, enrollment, $98.8M in 2011 to $80.7M FY19. This tuition increases and discounting, along with decrease coincides with a decrease in our necessary fundraising strategies to support post-traditional enrollment. our students’ successful academic and social progression.

THE FINANCIAL PLAN FY 2021 - 2023 19 Enrollment Plan

FINANCIAL AID OVERVIEW FY 2019 (apparent inconsistencies are explained by rounding)

TYPES OF AID SOURCES OF AID

5.8% 3.8% $7.7M 1.6% $5.1M $2.1M 1.3% 2.4% $1.7M $3.2M 28.5% 60.4% $38.1M $80.7M 35.7% 60.6% $47.7M $81.0M

TOTAL $133.7M TOTAL $133.7M

Loans Work Federal State Other

University Advancement Gifts Benefits Institutional Endowed and Annual Scholarships

20 THE FINANCIAL PLAN FY 2021 - 2023 Enrollment Plan

FINANCIAL AID OVERVIEW FY 2019 (continued) (apparent inconsistencies are explained by rounding)

TRADITIONAL STUDENTS TYPES OF AID SCHOOL DISTRIBUTION ALL AID (loans, gifts, work, benefits)

3.3% UW GR $1.9M 3.4% $.61M $2.0M RHCHP UG CBE GR $15.7M $11.2M 23.3% CBE UG $13.5M RHCHP GR $11.6M CCIS GR $12.9M $5.4M CCIS UG $4.4M

RHCHP DD CCLS GR $20.5M $4.2M 70% CCLS UG RC UG $2.0M $40.7M $38.1M RC GR $7.1M

TOTAL $58.1M TOTAL (unduplicated) $133.7M

RC UG RHCHP DD RHCHP GR RHCHP UG Gifts Work UW GR CBE GR CBE UG CCIS GR Loans Benefits CCIS UG CCLS UG CCLS GR RC GR

KEY: DD = doctoral degree GR = graduate UG = undergraduate UW = universitywide

THE FINANCIAL PLAN FY 2021 - 2023 21 Enrollment Plan

FINANCIAL AID OVERVIEW FY 2019 (continued) (apparent inconsistencies are explained by rounding)

LOAN DISTRIBUTION % AND NUMBER OF STUDENTS BY LEVEL SOURCES OF TRADITIONAL STUDENT GIFT AID

2.9% 7.7% 3.6% $1.2M $3.1M $1.4M

16.8% (999) 7.5% $3.0M 13.5% (926) $13.5M $10.9M 22.9% (412) $18.5M 78.4% 46.9% (2298) $31.9M $37.9M

TOTAL $80.7M TOTAL $40.7M

Traditional Graduate Undergraduate Institutional State Other

Post-Traditional University Advancement Doctorate Undergraduate Federal Endowed and Annual Scholarships

22 THE FINANCIAL PLAN FY 2021 - 2023 OPERATING AND CAPITAL BUDGETS Operating and Capital Budgets

FY 2016 – FY 2021 Tuition and Fee Revenue Chart

$148.4 150 $146.6 $145.9 $142.7 $142.5 145 $141.7

140

135

130 (in millions)

125

120

0 FY FY FY FY FY FY 2016 2017 2018 2019 2020 2021 (actual) (actual) (actual) (actual) (budget) (budget)

24 THE FINANCIAL PLAN FY 2021 - 2023

Operating and Capital Budgets

FY 2021 Operating Budget Highlights and Financial Planning

The development of the operating budget is the operating budget. The $33.3M Financial Aid the Student Center, DeSmet, and Berce Athletic anchored around three pillars—each representing budget is a reduction from last fiscal year of $1.4M. Center, as well as, interest on the DeSmet notes roughly a $5M adjustment. $400k of that reduction was made to account for payable. The Operations unit includes the divisions the cut (485 versus 505) to the budgeted freshmen of Advancement, Legal, Mission, the Office of The first pillar reduces tuition revenue by $5.8M class. Finally, a reduction of $500k was made to the President, Information Technology Services, by resetting the enrollment goals to better reflect the Discounts budget. Physical Plant, Office of Human Resources, and market demand and to integrate a strategic pricing Financial Affairs. strategy. The second pillar provides funding of The University decreased its FY 2020 operating a $2.5M compensation and benefits pool — a budget by $15M. Highlights of the budget critical component of our total rewards strategy. reductions include a $5.1M decrease in Academic It also funds $2.2M for new debt service from the Instructional expenditures. The Student Affairs 2018 Regis notes, and new depreciation from the budget decreased from $9.7M to $8.1M. The recently renovated Student Center and DeSmet Enrollment Management budget was reduced from Hall. The third pillar put in place a $5M first-line of $21.4M to $17.5M. The Enrollment Management defense that can respond to unforeseen changes in unit includes Admissions, Marketing and either revenue or expenses. Communications, Athletics, Enrollment Services, and the Porter Billups Leadership Academy Some targeted adjustments were captured in the divisions. The Operating divisions decreased their operating budget. To align student orientation fee collective budgets by a net $200k after adjusting revenue with costs we eliminated this fee from for a $2.2M increase in funding for depreciation on

26 THE FINANCIAL PLAN FY 2021 - 2023 Operating and Capital Budgets

The Operating Budget - Academic Affairs

Higher education is a challenging industry, and Regis discussions with industry leaders, we have identified which to fulfill degree requirements. In addition, the new University is not immune. Shifting demographics, that contemporary industry need for workers who can structure will create the opportunity for the creation of escalating competition, and changes in industry needs navigate the complexities of strategically deploying alternative credentials, maximizing business development are all impacting enrollments, particularly of adult technology within the business environment. Industry efforts. students. The public opinion of the value of a college seeks graduates who can work with technology while Operational Efficiencies education is shifting. The FY 2021 Academic Affairs understanding an organizational context. Business financial plan will address fiscal improvement through the moves at a rate faster than ever before, and as such The integration of the Anderson College of Business and continued focus on student success, the right-sizing of businesses need to use artificial intelligence to expedite the College of Computer and Information Sciences along personnel to the size of our student body, restructuring decision making. Importantly, businesses need those who with the realignment of the College of Contemporary of colleges, and quality assurance of learners’ online understand how to integrate data science into strategic Liberal Studies into the School for Professional experience. planning and organizational growth. Advancement enables operational efficiencies. These include the alignment of faculty/staff with student Student Success Regis University is integrating the Anderson College of FTE’s (variable and fixed costs) and economies of scale Business and the College of Computer and Information We are fortunate that our emphasis on student through shared services and the reduction of redundant, Sciences into one college in order to exploit this success began several years ago. Evidence suggests low-value-added work resulting in the savings of $889k opportunity. This will allow the University to integrate that institutions that are thriving are those focusing associated with these integration tactics. In addition to innovative business programs with strategic technology on student retention and completion. Implemented the integration efforts, leadership throughout Academic deployment, and integrate computer science, artificial this year include implementation of Student Success Affairs have been working to realign their budgets to intelligence, data science, and software engineering Coaches, the beginning of an adult first year experience current enrollment realities, resulting in a $5.2M expense with business acumen. No other institution in the Front and orientation, and initiation of social and mission decrease planned for FY 2021. Range is structured to respond to this rapid integration of experiences for adults. A tool to proactively address business and technology. Quality Assurance student retention, Education Advisory Board’s

(“EAB”) Navigate software, will be available to our From a College to a School with a new organizational A comprehensive evaluation of Regis University Student Success Coaches in Fall 2020. This tool uses home online courses was conducted in FY 2020 providing predictive analytics to assist our coaches in prioritizing The College of Contemporary Liberal Studies will be evidence for improving the online learning experience interventions. moved under the leadership of the Dean of Regis College for our students. Going forward for FY 2021, a quality as the School of Professional Advancement. The new assessment process for online coursework will be Restructuring school will continue to focus on the distinct adult learner implemented. This will include a focus on faculty-student Two colleges become one population while enabling the University to maximize the engagement, active learning, and community building. The boundaries between business and technology have use of existing resources. The new structure will help our Ongoing quality monitoring will begin in order to assure become increasingly blurred. Through focus groups and adult learners have a broader liberal arts curriculum from that requirements are met.

THE FINANCIAL PLAN FY 2021 - 2023 27 Operating and Capital Budgets

Total Rewards Strategy

Total Rewards Overview Compensation Jesuit value of cura personalis. We continue to offer generous leave choices, tuition benefits and Our total rewards strategy includes compensation During the previous fiscal year, the University a competitive retirement contribution, all of which (i.e., wages and salaries, promotions and pay began a concerted effort to assess vacant provide our employees with a well-rounded benefits increases), benefits (i.e., health and welfare, positions, by realigning and restructuring jobs package. education, paid time off and retirement) and personal to ensure our workforce is effectively meeting growth (i.e., training, career development, employee our strategic initiatives. Through the work of the recognition, work and life balance, and performance Cabinet Committee on Staffing in consultation Personal Growth management). and partnership with Human Resources and the

diligence of each of our divisional units, we began A renewed focus on personal growth options For the next fiscal year, we will be advancing our the process of reducing our overall headcount, and includes a robust and comprehensive learning and total rewards initiatives by further defining the at the same time, recognizing our key employees development program, accomplished through elements of the program through the development through redefined job duties and internal promotions. increased training and career growth opportunities. and formalization of a total rewards inventory. These efforts have assisted us in our overall retention We will introduce a performance management The total rewards inventory is an assessment of efforts and created growth opportunities for our top system that encompasses a consistent approach current offerings, as well as, opportunities for performers. We continue to assess and refine our to performance assessment to aid in the evaluation additional enhancements. The inventory offers us staffing needs as transitions occur. and recognition of required skills and behaviors. the opportunity to both educate current employees We continue to encourage and offer alternative and market our total reward offerings to potential and new ways to work such as flexible schedules, new hires as part of our retention and recruitment Benefits telecommuting and reduced work schedules, with strategies. Both endeavors augment our efforts to be the desired purpose of meeting University initiatives an employer of choice. We continue to re-evaluate our plan to provide and enhancing the work and life balance of our participants with offerings that assist in providing The University is again planning a total rewards employees. overall health and wellness initiatives that meet annual funding goal of $2.5M compensation our employees’ varying needs. For the next plan and benefits pool for FY 2021. As the University year, these enhanced medical options include implements to resize and adapt headcounts to weight management and cancer support programs. better align with student enrollment goals, this Additionally, the medical plans have a tiered premium allocation provides the opportunity to recognize and structure based on three salary levels. This approach compensate those employees whose positions and is intended to recognize the rising cost of living in work remain vital to our mission. the Denver area as well as meet our mission and

28 THE FINANCIAL PLAN FY 2021 - 2023 This chart details amounts committed, allocated and requested for Total Rewards.

$3.0M

$2.5M $2.5M $2.5M $2.5M

$2.0M

$1.5M

$1.0M

$.5M

$0 $0M FY 2020 FY 2021 FY 2022 FY 2023 actual request request request Operating and Capital Budgets

THE FY 2020 AND FY 2021 OPERATING BUDGETS (as of 4/1/20)

Revenue FY 2020 FY 2021 Expenditures FY 2020 FY 2021

Academic Tuition and Fees $148,392 $142,466 $58,146 $53,046 Instructional

Financial Aid and (36,224) (34,324) Co-Curricular 9,693 8,117 Discounts

Enrollment Net Tuition and Fees 112,168 108,142 21,385 17,485 Management

Auxiliary Operations 36,907 36,693 10,657 11,349 Enterprises

Total Rewards 0 2,500 Contribution Revenue 1,600 1,025

TOTAL OPERATING $126,131 $117,841 Other Revenue 2,330 2,331 EXPENSE

Change in Net Assets TOTAL OPERATING $624 $5,006 $126,755 $122,847 from Operations REVENUE (in thousands) (in thousands)

30 THE FINANCIAL PLAN FY 2021 - 2023 Operating and Capital Budgets

FINANCIAL STATEMENTS

Regis University was founded in 1877, and its main campus is located in Denver, Colorado. The University offers a wide range of undergraduate and graduate degrees. The University’s primary source of revenue is student tuition and fees.

Operating activities include the delivery of education programs and the necessary support functions including unrestricted investment income. Non- operating activities include contributions not used in operations realized and unrealized gain/loss on endowments in temporarily restricted assets and other supplemental activities.

The University financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America for not-for-profit organizations.

THE FINANCIAL PLAN FY 2021 - 2023 31 Operating and Capital Budgets

FY 2018 AND FY 2019 ACTUAL AUDITED OPERATING RESULTS

Revenue FY 2018 FY 2019 Expenditures FY 2018 FY 2019

Tuition and Fees $146,571 $145,912 Instruction $50,057 $49,908

Financial Aid and (41,390) (43,237) Academic Support 18,076 16,195 Discounts

Student Services 26,675 26,299 Net Tuition and Fees 105,181 102,675

Institutional Support 32,472 33,227

Auxiliary Enterprises 11,059 11,750

Auxiliary Enterprises 8,475 10,608

Contribution Revenue 6,212 5,709 TOTAL OPERATING $135,755 $136,237 EXPENSE Other Revenue 14,865 13,468 Change in Net Assets $1,562 $(2,635) from Operations TOTAL OPERATING $137,317 $133,602 REVENUE (in thousands)

(in thousands)

32 THE FINANCIAL PLAN FY 2021 - 2023 THE STUDENT CENTER

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THE FINANCIAL PLAN FY 2021 - 2023 33 A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. PROGRESS. IN A WORK PROGRESS. IN A WORK PROGRESS. IN A WORK PROGRESS. IN A WORK PROGRESS. IN A WORK PROGRESS. IN A WORK A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS. A WORK IN PROGRESS.

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Operating and Capital Budgets

FY 2021 CAPITAL SPENDING OUTLOOK

DEFERRED MAINTENANCE: $2.0M

TECHNOLOGY: $1.25M

36 THE FINANCIAL PLAN FY 2021 - 2023 Operating and Capital Budgets

2018-2019 REGIS STUDENTS BY REGION OF RESIDENCE SOURCE: REGIS UNIVERSITY ANALYTICS AND REPORTING

NORTH AMERICA: 9,323 EUROPE: 91 ASIA: 206 SOUTH AMERICA: 24 AFRICA: 162 OCEANIA: 6

WORLDWIDE: 9,881

THE FINANCIAL PLAN FY 2021 - 2023 37 PHILANTHROPY PHILANTHROPIC INVESTMENT

One of the great strengths of the American families. Even among those students who understand philanthropic landscape is its dual nature as and desire our kind of educational experience, both private expression and public action. While growing numbers of them require greater financial giving must serve a public purpose, in order to be assistance in meeting the cost. This is especially true philanthropy, every gift also is a donor’s expression for Regis. of her or his individual values, passions and As you walk around our beautiful campus, it also is interests. At its core, philanthropy is an inherently important to reflect that many of our buildings, labs creative activity. and sports facilities resulted from the generosity Guided by values, passions and interests, one and vision of our alumni and friends. We rely on the chooses from among a wide variety of charitable support of our alumni and friends to help us maintain organizations, educational institutions and social the outstanding education we offer. For over 140 causes. On many occasions, especially when larger years, Regis University has been a place where gifts are involved, donors exercise an extra degree of students have been inspired to achieve success creativity, investing in things that did not previously beyond their expectations. It is where our students exist like endowed scholarships and professorships, learn, live and gather. innovative academic programs and new buildings.

Only three sources of operating revenue are available to most private colleges and universities — student tuition and fees, auxiliary services income (bookstore and food services) and philanthropy (gifts and endowment income). To base Regis University’s future on the whim of 17-year-olds is not for the faint of heart. As the options for higher education multiply, so too are the financial pressures on most American

THE FINANCIAL PLAN FY 2021 - 2023 39 THE ENDOWMENT

A GIFT TO BOTH THE ANNUAL FUND AND THE ENDOWMENT MATTERS BECAUSE OF REGIS’ COMMITMENT TO ATTRACT AND ENROLL TALENTED STUDENTS, REGARDLESS OF THEIR FINANCIAL CIRCUMSTANCES. THIS IS THE REGIS UNIVERSITY THAT OUR ALUMNI AND FRIENDS KNOW AND TREASURE. The Endowment

ENDOWMENT PERFORMANCE

The Regis portfolio has grown to $74.1M as of Over the last ten years, Regis has outperformed December 31, 2019 with annualized returns of 18.4%, its benchmark and slightly trailed its median peer, 6.2%, and 7.1% over the past 1-, 5-, and 10-year in a peer group comprised of endowments and periods, respectively (net of investment foundations with $50M to $250M in assets. management fees).

Annual Endowment Return Performance - Ending Dec. 31, 2019

25%

20%

15%

10%

5%

0%

-5%

-10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Regis Endowment Actual Allocation Index Peer Median

Regis portfolio returns are presented net of fees and exclude legacy CDOs, a short-term liquidity pool, and a university-related investment pool. Peer group is comprised of the InvestorForce All Endowment & Foundation $50M to $250M (Net of Fees). Returns for 2019 are preliminary.

THE FINANCIAL PLAN FY 2021 - 2023 41 The Endowment

ENDOWMENT SPENDING PURPOSES FY 2019

27%

50%

3% 18% 2%

Academic, Religious and Student Loan General Financial Aid Student Programs ACB Chair Program Operations

Total: $2.8M

42 THE FINANCIAL PLAN FY 2021 - 2023 The Endowment

ENDOWMENT ASSETS OVER TIME

(apparent inconsistencies are explained by rounding)

Market Value History - 10 Years Ending Dec. 31, 2019

$80

$60

$40 (in millions) (in

$20

$0

2010 2012 2014 2016 2018

SUMMARY OF CASH FLOWS

1 Year - 2019 5 Years - 2015-2019 Ten years, 2010-2019

Beginning Market Value $64,066,862 $55,764,494 $38,486,045

Net Cash Flow ($868,376) ($480,090) ($52,769)

Net Investment Change $10,863,473 $18,777,556 $35,628,685

Ending Market Value $74,061,960 $74,061,960 $74,061,960

THE FINANCIAL PLAN FY 2021 - 2023 43 The Endowment

ENDOWMENT ASSET ALLOCATION OVER TIME

Balance at Dec. 31, 2018 is $64.1M Balance at Dec. 31, 2019 is $74.1M

80%

60%

40%

% Allocation (Actual) % Allocation 20%

0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 INVESTMENT POLICY Asset Allocation History 10 Years Ending Dec. 31, 2019

US Equity Non-US Equity Fixed Income Real Estate

Marketable Non-Marketable University-Related Alternatives Alternatives Short Term Pool Pool

44 THE FINANCIAL PLAN FY 2021 - 2023

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