October 5, 2016 – 12 Noon – Chattanooga Rooms B & C – University Center

BOARD OF TRUSTEES MEETING

Wednesday, October 5, 2016 – 12 Noon – Chattanooga Rooms B & C – University Center

AGENDA

 Call to Order/Invocation

 Lunch

 Chair Report

o Introduction of New Trustees o Affiliation Agreement Renewal Update/Action o Employee Management Services Agreement/Action

 Consent Agenda o Minutes o Action Items of the Executive Committee o Treasurer/Finance Report

 Chancellor’s Remarks

 Program o International Program-Takeo Suzuki, Executive Director for International Programs

 Endowment Report

 Executive Director’s Report

 Other Business

 Adjournment

Next Board of Trustees Meeting – Wednesday, December 7, 2016

CONSENT AGENDA

MINUTES BOARD OF TRUSTEES MEETING FRIDAY, JUNE 17, 2016 TENNESSEE ROOM

Pursuant to notice, a meeting of the Board of Trustees of the University of Chattanooga Foundation, Inc. was convened at 12:00 p.m. on Friday, June 17, 2016, in the Tennessee Room on the UTC campus in Chattanooga, Tennessee.

The following Ms. Corinne Allen, Chancellor Steven Angle, Mr. Doug Brown, Mrs. Nancy Collum, Mr. members of the Fred Decosimo, Mr. John Foy, Mr. Mike Griffin, Mr. Tom Griscom, Mr. John Guerry, Mr. Board of John Guthrie, Mr. Jim Hall, Mr. Robby Jones, Mr. Bill Kilbride, Ms. Donna Lawrence, Trustees Ms. Ladell McCullough, Ms. Ashlee Patten, Mr. Chris Ramsey, Ms. BettyeLynn Smith, (constituting a Mr. Bill Stacy, Mr. Tony Vest, Mr. Greg Vital, Dr. Andy Walker, Ms. Kim White, Mr. Quorum) were Grady Williams, Mr. Bucky Wolford and Ms. JoAnn Yates. present in person:

Others present: Present by invitation were: Dr. Jerald Ainsworth, Dr. Dee Dee Anderson, Dr. Richard Brown, Mr. Paul Clark, Mrs. Terri Clark, Mr. Andrew Clark, Ms. Terry Denniston, Mrs. Emily Forrest, Mr. Terry Fredrickson, Ms. Jayne Holder, Ms. Kirby Johnson, Dr. Rickey McCurry, Mr. Brent McMillian, Ms. Harriet Neely, Dr. Bryan Rowland, Mr. Takeo Suzuki, Mrs. KT Van Zile, Mr. Troy Van Zile, Ms. Caroline Von Kessler, Mr. Caleb Whitted, and Mrs. Suzanne Brown.

Call to Order Chair Bucky Wolford called the meeting or order. Dr. Bill Stacy gave the invocation. and Invocation:

Chancellor’s Chancellor Angle thanked Emily Forrest and Bryan Rowland for their work on the Annual Remarks: Report presentation. The Chancellor welcomed all of the Trustees and conveyed their importance to the University. Later in the meeting we will recognize those Trustees that are rotating off the board. The University mourns the passing of Lee Anderson and recognize and celebrate his achievements and contributions to the Foundation and University. We finished the year graduating our largest class of 1,390 graduates. We had 11,388 undergraduate and graduate students enrolled in the fall 2015. UTC has over 500 teaching faculty and 56,000 Alumni. Enrollment for the fall seems to be up a couple hundred students. We work with an incredible group of people and have been growing our team over the past year Dr. Joanne Romagni, Vice Chancellor for Research and Dean of Graduate School; Mr. Kirk Englehardt, Vice Chancellor for Marketing and Communications, Dr. Daniel Pack, Dean for the College of Engineering and Computer Science; and, Mr. Takeo Suzuki, Executive Director for International Programs. The overall representation of the endowment ($119M) was presented. Over 1000 students

Board of Trustees Meeting –June 17, 2016 Page - 1 - received support. South Campus Housing project was refinanced last year – a huge effort by many. A tremendous savings due to the refinancing. Campus Updates – A large hole in the ground on Vine St where the racquetball courts used to be for the new dorm and underground parking; the Lupton Library and Fine Arts Center rendering was presented (completion 2018); The new Alumni House at the Corner of Oak St. and Douglas St. is completed and occupied; the Mapp Building is being studied for various programs. Our community partnerships include Bessie Smith Cultural Center, Unum Scholars Program, and MLK RFP Process with Benwood Foundation and River City Company UTC has over 56,000 Alumni and are looking for ways to engage them. Just a few of the events are Homecoming, I love UTC week, Aluni Chapters, Athletics Hall of Fame, Mocs Maniacs Night and Founders Day. Jayne Holder and her group have great programs. The 2016 Distinguished alumnus is Davan Maharaj (gave our commencement address) and the 2015 Outstanding Service Award was earned by Scott LeRoy. College of Arts & Sciences – National Science Foundation Career Award was earned by Dr. Hope Klug; National Science Foundation Grant awarded to Dr. Jim Wang. Volkswagen funded a computer lab. The near completion of the Joseph F. Decosimo Success Center is notable for the College of Business. It is a beautiful center. John Thornton also helped with the fundraising for the Center. The Economics Department moved from the College of Arts and Science to the College of Business. We can take some advantage of the synergies there. One of our most distinguished economists in the College of Business is the holder of the Probasco Chair - JR Clark. Two new endowed scholarships were established by Dr. Marilyn Willis and Professor Ziad Keilany. The College of Engineering – they have done an outstanding job in having students involved in national competitions. Volkswagen is a consistent partner in the Engineering program. A Project Spotlight award went to Jackson Stone through the Oak Ridge Institute for Science and Education. The College of Health, Education, & Professional Studies – we are trying to expand our Gerontology program. Dr. Gary Wilkerson was inducted into the National Athletic Trainers’ Association Hall of Fame. Dr. Renee Murley is the new Director of the School of Education. Graduate School – Dr. Joanne Romagni has been working on the Research Dialogues program. There are new accelerated graduate programs in Interior Design, Computer Science, Public Administration, & Environmental Science. Honors College – the Guerry Center will be undergoing a remodel. We appreciate the great contributions to the University by the Guerry Family. Library – a number of namings have occurred – George C. Connor Special Collections Reading Room, David and Mary Copeland Conference Room, Isobel Griscom Presentation Room, Vernon & Dolly Kirby Harbaugh Reading Alcove, Dr. Joseph A. Jackson Office, Milred Goodman Knies Reading Alcove, Andrew C. Roth Reading Room, and The Steward Family Lounge. The library has become the intellectual hub of the campus. People are drawn to the building. Library Dean Liedtka is open minded and creative in the happenings of the library. Student Development – 220,000 visits to the ARC. There are 1,800 students in intramural sports (We are looking at the Rowing Program and seeing if it is sustainable). Some of the living learning communities – High Achieving Mocs, Discover & Declare and Film Fanatics. Athletics – The Golf Player Development Complex is completed. There were five SoCon Titles – Men’s Basketball, Women’s Basketball, Football, Volleyball and Wrestling. The Board of Trustees Meeting –June 17, 2016 Page - 2 -

average athletic GPA was 3.1. Our Student Call Center is up and running. Our calls are now done locally. There is an average of 16 callers each night, 35 students are employed, and an average of 150 calls a night are done. The Probasco Chair of Free Enterprise is one of our most distinguished Chairs, near and dear to the heart of our dear friend the late Scottie Probasco. The Chair, JR Clark is the Treasurer of the Mont Pelerin Society, there were also six publications in 2015 and they host a series of Burkett Miller Distinguished Lectures.

Consent The Consent Agenda consisted of the following items that were distributed in advance of Agenda: the meeting:  Minutes-March 23, 2016  Action Items of the Executive Committee  Treasurer/Finance Report  Real Estate Report The Consent Agenda was approved as presented by a motion from Corrine Allen and a second from Bill Stacy.

Chair’s Chair Wolford noted there was a lot going happening on the campus and thanked Remarks: Chancellor Angle for his presentation. He encouraged anyone who hasn’t had a chance to visit the campus to do so. Mr. Wolford recognized the outgoing trustees; Jim Hall, BettyeLynn Smith, Bill Stacy, Sue Anne Wells (absent), Grady William, and Tony Vest. This is an excellent group that has rotated off. He reminded them that after a period of time they could be voted back on. Progress has been made on the renewal of the Affiliation Agreement with Knoxville. An Employee Services Agreement is also being worked on. Bucky Wolford thanked Fred Decosimo for his duties as the Nominating Chair and mentioned to the attending Trustees that the Board is looking for new talented people to serve and to bring names forward to be considered in the future. Mr. Wolford thanked Bryan Rowland for his hard work and he looks forward to working with him next year. The board meeting schedule for 2016-2017 are October 5th, December 7th, March 15th, and May 31st unless for some reason they need to be rescheduled.

Endowment John Foy, Endowment Committee Chair gave an update on the endowment. The Committee endowment fund is approximately $118M. We are up about 50 basis points for the year. Report: Pool B (short term investments) is at approximately $10.2M. The market was not extremely generous with us for the year. The SMILE Fund is turning around and the educational experience gained by the students involved in the fund is phenomenal.

Nominating Nominating Committee Chair Fred Decosimo presented the 2016-2017 nominations. Committee The officer nominees for 2016-2017 are Bucky Wolford, Chair, Kim White, Vice Chair, Report: John Foy, Treasurer, Corinne Allen, Secretary, Fred Decosimo, Immed. Past Chair. The Officer nominations were voted by a motion and second as presented and approved. The nominees to expire on June 30, 2020 are Alan Derthick, Breege Farrell, Mike Kramer (New), Scott LeRoy, Mitch Patel (New), and JoAnn Yates. A motion and second was tendered to approve the nominees as presented. The motion was approved.

Executive Executive Director Bryan Rowland presented his report. It has been a good year. Dr. Board of Trustees Meeting –June 17, 2016 Page - 3 -

Director’s Rowland wants to join Chancellor Angle and Chair Wolford in thanking the outgoing Report: Trustees for their loyalty and service for eight or more years. Since the Foundation’s inception in 1969 – in literal money the Foundation has transferred approximately $112M to help students and UTC. The work of this Board is the work that is done through your hard work in the committees. Chancellor Stacy chaired the Grants Committee over the past few years and done an excellent job. We will miss him. Last year $1.67M was approved in Grants. For next year $1.8M has been approved in grants. Fred Decosimo chaired the Nominating Committee and hase secured two new excellent Trustees for the year. John Foy chaired the Finance Committee. We want to particularly thank the committee for funding 13 new development staff members. You have also invested in the Calling Center and we are very proud of the program. Andrew Clark is doing a great job on overseeing the students calling. The Endowment Committee – as John Foy reported the SMILE Fund is an amazing project. It is changing the students’ lives, the practical knowledge is outstanding. We hope to bring some of the students to a future meeting. The Audit Committee – Grady Williams, thank you for your guidance and for chairing this committee. Another clean audit was issued. Real Estate Committee – Kim White is the chair. A big task was the refinance of the South Campus property. The interest rate went from 5.5% to 3.9%. A great savings. Occupancy is good. Dr. Dee Dee Anderson is managing the South Campus properties. Alumni Program – we are very thankful for the board providing the operational funding for the program. System wide numbers are very strong. $222M system wide has been raised. Through May 31st UTC has raised $14.6M. All departments have done an excellent job. Our Progress to Chancellor’s Goals (as of May 31st) – Gifts and Pledges = 122% Alumni Donors = 107% Donors = 93% From a fundraising perspective the State of the Organization is very healthy. Thank you for your service!

Adjournment: The meeting was adjourned at 1:19 p.m. – Next meeting date is TBD

______Corinne Allen, Secretary

Board of Trustees Meeting –June 17, 2016 Page - 4 -

ACTION ITEMS OF THE EXECUTIVE COMMITTEE

September 28, 2016

 On a motion from Corinne Allen and second from B.B. Bell, the committee approved for Chair Wolford to have a document drawn up to immediately commence termination of the Affiliation Agreement if the September 29, 2016 phone call between the UTFI Representatives, Dr. DiPietro, Chancellor Angle, and Chair Wolford does not produce a positive approval for adoption of both the Employee Services Agreement and the Affiliation Agreement.

 On a motion from John Foy with a second from Fred Decosimo the committee approved to decline the requests of the three Jackson Estate Heirs for the Foundation to pay them each $50K. The Will stipulated they were to receive $50K each if money was left over in the estate. There was no money left.

 On a motion from Fred Decosimo and a second from John Foy the committee approved to rollback $88K into the Endowment from the spendable account for the CC Bond Professorship.

 On a motion from John Foy and second from Alexis Bogo the committee approved to return to the Songster Estate the $175K received by the UCFdn that was earmarked for the Lambda Chi Fraternity. The Songster Estate will in turn send the $175K to Lambda Chi so they may use it per Mr. Songster’s wishes.

TREASURER/FINANCE REPORT University of Chattanooga Foundation, Inc. Statement of Financial Position As of June 30, 2016, and June 30, 2015

June 30, 2016 June 30, 2015 ASSETS

Investment Pool A $ 112,900,189 $ 118,547,281 Investment Pool B 4,044,539 3,979,465 Investment Held for UTC 4,091,225 3,269,365 Investment Held for Sim Center - 2,269 Investment Lupton Renaissance 1,301,016 1,327,141 Investment Philp 47,652 48,522 Interest receivable 158,345 180,000 Interest receivable - Excess Building Cost - 86,353 Computer loan receivable 11,304 10,123 Land - - Real Property 137,000 Other investments - - Due from CDFI - 985,741 Note receivable from CDFI 2,367,456 3,000,000 Assets in Transfer - Total Assets $ 125,058,726 $ 131,436,260

LIABILITIES

Payable - Grants $ 1,642,820 $ - Payable-UTFI - - Payable - Sim Center 1,452,723 1,528,412 Payable - UTC 10,923 Payable - Alumni 16,280 Payable to UTC - Lupton funds 1,073,847 1,122,260

Total Liabilities $ 4,196,593 $ 2,650,671

FUND BALANCE

Beginning fund balance $ 128,785,588 $ 122,915,888 Increase (decrease) (7,922,815) 5,869,700

Ending fund balance $ 120,862,773 $ 128,785,588

Ending fund balance plus liabilities $ 125,059,326 $ 131,436,260 University of Chattanooga Foundation, Inc. Statement of Activities For the Period Ending June 30, 2016, and June 30, 2015

4th QTR ended YTD YTD June 30, 2016 June 30, 2016 June 30, 2015

REVENUES, GAINS, AND OTHER SUPPORT

Contributions Pool A $ 562,730 $ 3,076,292 $ 3,051,323 Contributions Pool B 290,507 890,335 1,192,001 Contributions Held for UTC 896,605 2,866,177 2,795,975 Non-cash contributions - - Realized/Unrealized gain/(loss) on investments (595,856) (6,468,337) 4,207,067 Interest and dividend income 387,545 1,520,318 1,588,411 Contribution from CDFI - 713,674 Endowment Mng Fee Income 1,357,216 1,357,216 474,437 Other income - 1,050

Total revenues, gains, and other support $ 2,898,746 $ 3,242,003 $ 14,023,938

EXPENSES

Grants $ 8,547,172 $ 8,656,942 $ 7,165,742 Grants returned - (250,870) (9,888) Contribution to CDFI - - Fund Management Fees 1,356,650 1,356,650 474,437 Computer Loan Write-Offs - (130)

Total grants $ 9,903,822 $ 9,762,722 $ 7,630,161

PROFESSIONAL FEES

Accounting services $ 35,000 $ 70,000 $ 70,000 Audit fees - 34,050 30,450 Legal services 5,419 5,719 420 Consulting services 21,250 85,000 85,000 Custodial fees 21,738 63,191 53,000 Credit Card Fees 3,890 12,687 10,896 Fund management fees - Tax expense - 63,830 47,595 Insurance premiums - 14,968 16,159 Property expense - - UTFI contribution 249,154 996,617 210,368 Athletics Development Support 74,895 74,895 Miscellaneous expense 4,450 9,883 188

Total professional fees $ 415,796 $ 1,430,840 $ 524,076

Total expenses $ 10,319,619 $ 11,193,562 $ 8,154,238

Increase (decrease) in net assets $ (7,420,872) $ (7,951,559) $ 5,869,700

NET ASSETS, beginning of period $ 128,254,901 $ 128,785,588 $ 122,915,888

NET ASSETS, end of period $ 120,834,029 $ 120,834,029 $ 128,785,588 UNIVERSITY OF CHATTANOOGA FOUNDATION, INC. Fund Balance Summary As of June 30, 2016

Assets Liabilities Principal Income Total

SCHOLARSHIPS Permanently Restricted Scholarship Funds 27,728,475.63 - 28,812,705.20 (1,084,190.25) 27,728,514.95 Temporarily Restricted Scholarships Funds 525,368.20 - 839,792.12 (314,423.92) 525,368.20 TOTAL SCHOLARSHIPS FUNDS 28,253,843.83 - 29,652,497.32 (1,398,614.17) 28,253,883.15 PROFESSORSHIPS College of Business 4,109,064.06 - 4,228,591.00 (119,526.94) 4,109,064.06 Education 2,385,983.27 - 2,495,738.14 (109,754.87) 2,385,983.27 Engineering 172,791.77 - 173,064.80 (273.03) 172,791.77 English 1,284,906.08 - 1,336,997.21 (52,091.13) 1,284,906.08 History 41,849.93 - 43,777.75 (1,927.82) 41,849.93 Music 399,867.41 - 404,786.30 (4,918.89) 399,867.41 Nursing 1,741,227.07 - 1,769,384.16 (28,157.09) 1,741,227.07 Physical Therapy 32,276.85 - 33,765.72 (1,488.87) 32,276.85 Political Science 270,574.51 - 283,059.16 (12,484.65) 270,574.51 Sciences 343,678.55 (325.45) 359,078.05 (15,724.95) 343,353.10 Non-Program Specific 3,965,664.91 (5,703.90) 3,663,368.53 296,592.48 3,959,961.01 TOTAL PROFESSORSHIPS 14,747,884.41 (6,029.35) 14,791,610.82 (49,755.76) 14,741,855.06 ACADEMIC PROGRAMS and CHAIRS Zeboim C. Patten Fund-Board Restricted 3,367,057.14 - 3,047,700.27 319,356.87 3,367,057.14 College of Arts and Science- Permanently Restricted 7,044,910.54 - 7,355,952.25 (311,041.71) 7,044,910.54 College of Arts and Science- Temporarily Restricted 105,984.21 (3,236.05) 139,159.51 (36,411.35) 102,748.16 College of Health, Educ, and Prof Studies- Permanently Restricted 1,758,500.88 - 1,771,795.84 (13,294.96) 1,758,500.88 College of Health, Educ, and Prof Studies- Temporarily Restricted 6,113.92 - 5,795.84 318.08 6,113.92 College of Business- Permanently Restricted 762,545.80 - 797,414.33 (34,868.53) 762,545.80 College of Business- Temporarily Restricted 499,347.17 (212,191.62) 500,054.55 (212,899.00) 287,155.55 College of Eng and Comp Science- Permanently Restricted 1,687,903.27 - 1,764,877.40 (76,974.13) 1,687,903.27 College of Eng and Comp Science- Temporarily Restricted 2,278.76 - 2,251.28 27.48 2,278.76 Honors College- Temporarily Restricted 922,775.98 - 973,148.70 (50,372.72) 922,775.98 International Studies - Temporarily Restricted 166668.85 0 166661.33 7.52 166668.85 UHON - Permanently Restricted 34,380.84 - 35,456.89 (1,076.05) 34,380.84 Library- Permanently Restricted 2,071,149.57 - 2,159,834.05 (88,684.48) 2,071,149.57 Probasco Chair-Permanently Restricted 10,885,664.34 - 10,553,931.95 331,732.39 10,885,664.34 Tennessee Tomorrow - Permanently Restricted 4,430,690.44 - 4,635,317.07 (204,626.63) 4,430,690.44 ACADEMIC PROGRAMS and CHAIRS 33,745,971.71 (215,427.67) 33,909,351.26 (378,807.22) 33,530,544.04 PROGRAM FUNDS by Area Athletics 1,301,592.49 (11,242.29) 1,354,060.44 (63,710.24) 1,290,350.20 Business 71,546.30 (974.53) 121,146.92 (50,575.15) 70,571.77 Chancellor Funds 1,334,329.24 (1,073,846.69) (1,204,708.99) 1,465,191.54 260,482.55 Education 104,290.81 (12,266.17) 158,011.24 (65,986.60) 92,024.64 Engineering and Comp Sci 131,794.62 (15,222.73) 166,246.10 (49,674.21) 116,571.89 Facilities 64,640.40 - 69,137.88 (4,497.48) 64,640.40 Faculty Development 164,681.98 - 171,862.16 (7,180.18) 164,681.98 UNIVERSITY OF CHATTANOOGA FOUNDATION, INC. Fund Balance Summary As of June 30, 2016

Assets Liabilities Principal Income Total

Faculty/Staff Support 416,666.26 - 320,561.47 96,104.79 416,666.26 Provost 37,886,315.72 (1,452,672.99) 37,858,522.48 (1,424,879.75) 36,433,642.73 Miscellaneous 53,763.45 - 48,258.98 5,504.47 53,763.45 Fine Arts Center 12,579.11 (94.25) 13,158.77 (673.91) 12,484.86 Student Development 186,171.77 - 198,027.22 (11,855.45) 186,171.77 SIM Center Funds - - (15,556.93) 15,556.93 - Pass Through Funds 56,907.34 (16,330.00) 37,683.77 2,893.57 40,577.34 PROGRAM FUNDS by Area 41,785,279.49 (2,582,649.65) 39,296,411.51 (93,781.67) 39,202,629.84

UTC ANNUAL GIVING Scholarships 64,800.98 (916.76) 143,534.50 (79,650.28) 63,884.22 Administrative Offices 28,734.94 (1,093.80) 42,930.19 (15,289.05) 27,641.14 Athletics 1,011,508.84 (376,357.36) 1,804,316.68 (1,169,165.20) 635,151.48 Campus 844,897.39 (27,905.92) 1,349,326.67 (532,335.20) 816,991.47 College of Arts and Science 255,276.84 (31,323.13) 319,284.78 (95,331.07) 223,953.71 College of Business 1,108,877.99 (899,748.51) 1,214,064.87 (1,004,935.39) 209,129.48 College of Education 139,208.35 (26,516.19) 148,780.28 (36,088.12) 112,692.16 College of Engineering 216,829.37 (21,462.63) 481,867.86 (286,501.12) 195,366.74 Center for Career Community Education 10,794.23 (370.28) 14,368.89 (3,944.94) 10,423.95 Facilites 48,844.27 (200.00) 49,728.64 (1,084.37) 48,644.27 Fine Arts Center 2,695.48 - 26,438.43 (23,742.95) 2,695.48 Graduate School 10,539.21 - 10,574.99 (35.78) 10,539.21 Honors College 114,715.54 (273.10) 127,248.63 (12,806.19) 114,442.44 Library 13,928.40 (6,191.00) 15,063.25 (7,325.85) 7,737.40 Student Development 211,484.71 - 216,875.10 (5,390.39) 211,484.71 Enrollment Services 9,761.85 (127.45) 12,072.07 (2,437.67) 9,634.40 UTC ANNUAL GIVING Total 4,092,898.39 (1,392,486.13) 5,976,475.83 (3,276,063.57) 2,700,412.26

UC FOUNDATION 2,433,448.35 - 2,348,268.57 85,179.78 2,433,448.35 Total Fund Balances 125,059,326 (4,196,593) 125,974,615 (5,111,843) 120,862,773

Assets Liabilities Principal Income Total BALANCES BY INVESTMENT POOL POOL A 113,582,087.70 (1,452,672.99) 114,824,831.22 (2,695,377.19) 112,129,454.03 POOL B 10,128,570.40 (1,670,073.12) 12,380,153.28 (3,921,656.00) 8,458,497.28 Lupton Renaissance 1,301,016.03 (1,073,846.69) (1,278,688.63) 1,505,857.97 227,169.34 McDonald and Philp 47,652.05 - 48,319.44 (667.39) 47,652.05

Total Fund Balance 125,059,326 (4,196,593) 125,974,615 (5,111,843) 120,862,773 THE UNIVERSITY OF TENNESSEE AT CHATTANOOGA CHAIRS OF EXCELLENCE FUNDS ANALYSIS AS OF June 30, 2016

SOURCE OF ENDOWMENT FUNDS DATE CURRENT CHAIR ESTABLISHED HOLDER STATE UC FDN PRIVATE TOTAL Burkett Miller Sep 1985 Ronald Cox $ 985,824.87 $ $ 2,035,715.85 $ 3,021,540.72 Management and Technology SunTrust Bank - Humanities Mar 1986 Wilfred McClay 1,064,822.62 743,036.00 1,486,072.00 3,293,930.62 Unum Life & Accident Mar 1986 Sergei Avdonin 1,307,629.40 778,728.65 1,557,457.30 3,643,815.35 Insurance Company Applied Mathematics George R. West, Jr. Jul 1986 David Sachsman 854,004.42 1,762,970.81 2,616,975.23 Communications and Public Affairs Judaic Studies Jan 1987 Irven Resnick 860,062.89 592,303.08 1,184,606.16 2,636,972.13 Walter M. Cline, Jr. Jan 1987 David Levine 892,728.59 611,683.44 1,223,366.88 2,727,778.91 Rehabilitation Technology J. Burton Frierson Jan 1987 Mark Mendenhall 851,320.47 584,524.52 1,169,049.05 2,604,894.04 Business Leadership Clarence E. Harris Feb 1988 Richard Becherer 854,587.10 1,762,960.01 2,617,547.11 Business Administration Lyndhurst Foundation Jun 1988 VACANT 868,669.85 1,787,813.57 2,656,483.42 Arts Education Center . O. D. McKee Dec 1998 James Tucker 525,479.77 764,243.16 1,289,722.93 Learning TOTAL $ 9,065,129.98 $ 3,310,275.69 $ 14,734,254.79 $ 27,109,660.46

Endowment Funds reported at Market Value

PROGRAM PRESENTATION

globalize UTC

Takeo Suzuki, Executive Director UTC Office of International Programs [email protected] / Office: 423-425-4759 Dept. 1751, 615 McCallie Ave, Chattanooga, TN, 37403-2598, USA

We Shall Achieve

We Shall Achieve 1. Nothing to do with Suzuki motorcycle 2. Born in May 27, 1975 3. Lived in Wales, Macedonia and Malaysia 4. Loves baseball, camping, traveling 5. My favorite food is …fried Okura.

We Shall Achieve

We Shall Achieve Students fr0m 38 countries at UTC! • ARGENTINA • ITALY • South Korea • AUSTRALIA • Japan • Spain • Belgium • Kenya • Sudan • Bolivia • Kuwait • Tanzania • Brazil • Libya • Thailand • Canada • Mexico • United Kingdom • China • Nigeria • Uzbekistan • COLOMBIA • Pakistan • Venezuela • Ecuador • Peru • Vietnam • GERMANY • PHILIPPINES • ZIMBABWE • Haiti • ROMANIA • India • Saudi Arabia • Iran • Slovakia • Iraq • South Africa

We Shall Achieve Can you connect all the dots with 4 straight lines? Once you begin you cannot lift your pencil.

We Shall Achieve So I’m asking you to think outside the box!

We Shall Achieve How many letter “F” can you find? “ Finished files are the re- Sult of years of scientif- Ic study combines with the Experience of many years. ”

We Shall Achieve COMMUNICATION “ F inished files are the re- Sult of years of scientif- Ic study combines with the Experience of many years. ”

We Shall Achieve Center for Global Education Let’s place UTC in the World Map

Office of Office of International Study Student and Abroad Scholar Services Office of Community English as Outreach a Second Language Institute 12 We Shall Achieve QUESTION “ As far as you are concerned, what does NOT have to change because it is already going well enough? ”

We Shall Achieve QUESTION “ Knowing the university / team and your work as well as you do – what is needed to make 2016/2017 MORE SUCCESSFUL than it already is going to be? ”

We Shall Achieve Five years from “ now…what should be improved, and different? ”

We Shall Achieve “Are we educating our students for the future – a very different future than the one we were prepared for when we were children?”

We Shall Achieve It's time to put CHATTAOOGA and UTC on the world map.

/txsuzuki /UTCglobal

We Shall Achieve

We Shall Achieve Takeo Suzuki, Executive Director /txsuzuki Office of International Programs /UTCglobal [email protected] Office: 423-425-4759 Hooper 203

We Shall Achieve

ENDOWMENT REPORT University of Chattanooga Foundation, Inc.

Foundation

Preliminary Summary as of 09/16/2016

Market Value Market Month to Calendar Calendar as of Value % of Date thru QTD thru YTD thru Asset Class / Manager 09/16/2016 Total Target % 09/16/2016 09/16/2016 09/16/2016

Developed Markets Equity Large Cap Core Vanguard Russell 3000 Index I $33,021,603 28.3% ‐1.4% 2.8% 6.4% Russell 3000 Index ‐1.4% 2.9% 6.5% International Equity Artisan International Fund $9,074,656 7.8% ‐1.1% 1.4% ‐3.4% EAFE Growth Index (in US Dollar NET) ‐0.6% 2.8% 0.5% Dodge & Cox International Stock Fund $9,147,674 7.8% ‐1.9% 8.0% 2.8% EAFE Value Index (in US Dollar NET) ‐1.7% 5.1% ‐1.8% Total Developed Markets Equity $51,243,933 44.0% 35.0% ‐1.4% 3.5% 4.0% MSCI World Index (US$) ‐1.3% 2.9% 3.6%

Emerging Markets Equity Emerging Markets Aberdeen Emerging Markets Instl Fd Instl $3,174,235 2.7% ‐1.4% 3.2% 16.5% MSCI Emerging Markets Index(US$) ‐0.8% 6.9% 13.9% Columbia Acorn Emerging Markets Z $2,267,348 1.9% 0.1% 4.5% 5.8% MSCI Emerging Markets Index(US$) ‐0.8% 6.9% 13.9% Hedged Equity ESG Cross Border Equity Offshore Fund Ltd $1,930,166 1.7% 0.8% 0.1% ‐6.3% HFRI Emerging Markets: Global Index ‐‐ 2.7% 6.3% Total Emerging Markets Equity $7,371,749 6.3% 10.0% ‐0.4% 2.8% 7.3% MSCI Emerging Markets Index(US$) ‐0.8% 6.9% 13.9%

Total Equity $58,615,682 50.3% ‐1.3% 3.4% 4.4% MSCI AC World Index ‐1.2% 3.4% 5.1%

Global Hedged Opportunities 1 Marathon European Credit Opport Fund II, L.P. $1,678,433 1.4% ‐‐ 1.8% 3.2% Hedged Equity Passport Offshore Ltd. $2,021,952 1.7% 0.3% ‐3.5% ‐10.9% HFRI Equity Hedge Index ‐‐ 3.5% 3.1% 1 Pointer Management Offshore, Ltd. $9,494,464 8.1% ‐‐ 3.3% ‐4.3% S&P 500 Index ‐‐ 2.4% 6.4% TSWII, L.P. $5,348,352 4.6% ‐‐ 1.6% ‐2.6% S&P 500 Index ‐‐ 2.4% 6.4% Distressed Securities 1 Fir Tree Real Estate Fund III, Ltd. $3,881,028 3.3% ‐‐ 0.3% 3.6% Barclays Mortgage Backed Securities Index ‐‐ 0.4% 3.5% Fir Tree Real Estate Opportunity Fund II $6,375 0.0% ‐‐ ‐‐ 9.5% Barclays Mortgage Backed Securities Index ‐‐ 0.4% 3.5% Global Macro Two River Farms, LLC1 $330,303 0.3% ‐‐ ‐‐ ‐‐ Total Global Hedged Opportunities $22,760,906 19.5% 20.0% 0.0% 1.6% ‐2.5% HFRI Fund of Funds Index ‐‐ 2.0% ‐0.6% MSCI World Index (US$) ‐1.3% 2.9% 3.6% Market Value Market Month to Calendar Calendar as of Value % of Date thru QTD thru YTD thru Asset Class / Manager 09/16/2016 Total Target % 09/16/2016 09/16/2016 09/16/2016

Private Equity Varde Partners XII, L.P. $756,030 0.6% ‐‐ ‐‐ ‐‐ Private Equity Siguler Guff BRIC Opportunities Fd II $4,865,380 4.2% ‐‐ ‐‐ ‐‐ Siguler Guff Distressed Opp Fund III $1,087,802 0.9% ‐‐ ‐‐ ‐‐ Special Situations KKR Special Situations Fund II L.P. $364,272 0.3% ‐‐ ‐‐ ‐‐ VPC Special Opportunities Fund III GP, L.P. $518,692 0.4% ‐‐ ‐‐ ‐‐ Total Private Equity $7,592,176 6.5% 10.0% ‐‐ ‐‐ ‐‐

Income Oriented Rimrock High Income Plus Fund, Ltd $5,401,021 4.6% 0.5% 2.0% 0.7% Barclays Aggregate Bond Index ‐0.6% ‐0.2% 5.2% Long/Short Credit MidOcean Credit Opportunity Fund, Ltd. $2,392,847 2.1% 0.6% 2.2% 4.4% HFRI RV:Fixed Income ‐ Corporate ‐‐ 3.4% 8.0% Absolute Return Gruss Global Investors Ltd $2,346,670 2.0% ‐0.4% ‐0.2% 1.3% HFRI RV:Multi‐Strategy Index ‐‐ 2.1% 3.9% Watershed Capital Ptrs L.P. $473,800 0.4% ‐‐ 4.2% 8.8% HFRI RV:Fixed Income ‐ Corporate ‐‐ 3.4% 8.0% Direct Lending BlueBay Direct Lending Fund II US SLP $653,635 0.6% ‐‐ ‐‐ ‐‐ GSO European Senior Debt Fund LP $118,489 0.1% ‐‐ ‐‐ ‐‐ Barclays Credit Bond Index ‐‐ ‐‐ ‐‐ Highbridge Princ Strat‐Specialty Loan Fd III $3,588,219 3.1% ‐‐ ‐‐ ‐‐ S&P LSTA Leveraged Loan Index ‐‐ ‐‐ ‐‐ KKR Lending Partners II L.P. $2,898,067 2.5% ‐‐ ‐‐ ‐‐ S&P LSTA Leveraged Loan Index ‐‐ ‐‐ ‐‐ KKR Lending Partners L.P. $2,479,685 2.1% ‐‐ ‐‐ ‐‐ S&P LSTA Leveraged Loan Index ‐‐ ‐‐ ‐‐ Total Income Oriented $20,352,434 17.5% 20.0% 0.2% 0.9% 1.0% Barclays Aggregate Bond Index ‐0.6% ‐0.2% 5.2% Market Value Market Month to Calendar Calendar as of Value % of Date thru QTD thru YTD thru Asset Class / Manager 09/16/2016 Total Target % 09/16/2016 09/16/2016 09/16/2016

Real Assets Master Ltd Partnership ‐ Infrastructure 1 Kayne Anderson MLP Fund $1,166,261 1.0% ‐‐ 0.7% 9.7% Alerian MLP Index ‐3.4% ‐4.1% 9.9% Private Real Estate Metropolitan RE Partners Global $1,628,243 1.4% ‐‐ ‐‐ ‐‐ NCREIF‐Property Index ‐‐ ‐‐ ‐‐ Private Energy Kayne Anderson Energy Fund VI, L.P. $1,722,026 1.5% ‐‐ ‐‐ ‐‐ Kayne Anderson Energy Fund VII, L.P. $695,386 0.6% ‐‐ ‐‐ ‐‐ Total Real Assets $5,211,917 4.5% 5.0% ‐‐ ‐‐ ‐‐

Cash and Equivalents SunTrust Cash Account $1,711,045 1.5% ‐‐ ‐‐ 0.1% T‐Bills (90 Day) Index ‐‐ ‐‐ 0.1% Cash & Equivalents Watershed Capital Partners Receivable $349,975 0.3% ‐‐ ‐‐ ‐‐ Total Cash and Equivalents $2,061,020 1.8% 0.1%

Total Fund $116,594,135 100.0% ‐0.6% 2.2% 1.9% 2 Short Term/Style Benchmark ‐0.8% 2.3% 3.8% 3 Long Term/Passive Benchmark ‐1.1% 2.8% 5.2%

1 Estimate as of August 31, 2016 2 Short Term/Style Benchmark: 55% MSCI AC World Index, 20% HFRI FOF, 15% Barclays Aggregate Bond Index, 5% NCREIF, 5% Cambridge PE 3 Long Term/Passive Benchmark: 80% MSCI AC World Index, 20% Barclays Aggregate Bond Index University of Chattanooga Foundation, Inc.

Pool B

Preliminary Summary as of 09/16/2016

Market Value Market Month to Calendar Calendar as of Value % of Date thru QTD thru YTD thru Asset Class / Manager 09/16/2016 Total Target % 09/16/2016 09/16/2016 09/16/2016

Income Oriented Core Vanguard Total Bond Market ETF $3,796,874 43.3% ‐0.5% ‐0.2% 5.2% Barclays Aggregate Bond Index ‐0.6% ‐0.2% 5.2% Short Vanguard Short‐Term Bond ETF $3,709,891 42.3% 0.1% ‐0.0% 2.4% ML 1‐3 Corporate/Government Index 0.0% ‐0.1% 1.6% Total Income Oriented $7,506,765 85.6% 100.0% ‐0.2% ‐0.1% 3.8% 1 Income Oriented Custom Benchmark ‐0.3% ‐0.1% 3.4%

Cash and Equivalents Cash & Equivalents SunTrust Cash Account $1,264,258 14.4% ‐‐ ‐‐ 0.1% T‐Bills (90 Day) Index ‐‐ ‐‐ 0.1% Total Cash and Equivalents $1,264,258 14.4% ‐‐ ‐‐ 0.1%

Total Fund $8,771,023 100.0% 100.0% ‐0.2% ‐0.1% 3.4%

1 Income Oriented Custom Benchmark ‐ 50% Barclays Aggregate Bond Index & 50% ML 1‐3 Corporate/Government Index UTCsmilefund

During our last performance update at the beginning of the Initial Value: summer, we discussed our plans of rebalancing our port- $250,000 07/01/2015 folio and refining our process to improve our allocation and selection effects to ultimately achieve a higher return. Fortunately, we have succeeded as we have outperformed Beginning Year Value: the benchmark over the last four months and turned our team of officers and analysts into a well-oiled machine. $243,052 01/01/2016 Although we did not perform well as a fund during our first seven months, we are proud that we have finally surpassed our initial allocation. In fact, since our lowest value in Feb- Current Value: ruary, the fund has gained over 20 percent and currently $255,174 09/28/2016 stands at over $255,000. -Dillon Martin YTD Return: Return since May:

4.987% 8.876%

Sector Allocation Sector Allocation 2% 3% IT 3% 3% 2% 3% ITCONSUMER DISCRETIONARY 3% 17% 3% CONSUMERHEALTHCARE DISCRETIONARY 5% 17% HEALTHCARE 5% CONSUMER STAPLES 6% CONSUMER STAPLES 6% ENERGY ENERGY 14% INDUSTRIALS 14% INDUSTRIALS 12% TELECOMUNICATIONS 12% TELECOMUNICATIONS FUNDS FUNDS 13% FINANCIALS 10%10% 13% FINANCIALS REALREAL ESTATE ESTATE 12%12% MATERIALSMATERIALS

SMILE Fund (White) vs. Benchmark (Orange) May 1, 2016-September 28, 2016

EXECUTIVE DIRECTOR’S REPORT

Executive Director’s Report October 2016

Thank you very much for your hard-work and dedication to the University of Chattanooga Foundation and to the University of Tennessee at Chattanooga. Your efforts to support our students and faculty/staff make a tremendous impact.

Please join me in welcoming our two newest members. Mike Kramer and Mitch Patel joined us officially on July 1, 2016. Both are already very active with their committees and are also very involved with other parts of our campus.

The UTC campus had a great year. The Chancellor’s Annual Report to the University of Chattanooga Foundation outlined a number of outstanding projects. Your time and resources made a huge impact on our faculty, staff and students. A copy of the Chancellor’s Report can be found at http://www.utc.edu/development/pdfs/chancellor-report-16-v8-web.pdf.

We are happy to report that our enrollments are strong for the fall 2016 semester and that our south campus housing is approximately 99% occupied. We are very excited about the new residents we welcomed in mid-August. I also want to thank the many volunteers who assisted with move-in day; it was a great success.

Lots of activities have occurred around the development and alumni office. We are excited about the plans for homecoming and other activities planned around alumni reunions. Many of you may have participated in the re-dedication of Chamberlain Field. What a wonderful addition to the center of our campus. We are also happy to report that later this fall, there will be an edition of the UTC magazine. Watch for it in your mailbox and through email. The campus calling program is also underway. We have 16 students calling each night and we call our alumni 4 nights per week. We also have a good group of development professionals out making calls every day on behalf of the UC Foundation and UTC!

At the end of this report you will find a number of charts concerning year-end fundraising and year-to-date results. Attached are the fiscal year 2016 reports as well as the first two months of fiscal year 2017. We had a great year and are having a great first two months. Thank you to all who have donated and all who have volunteered their time.

As always, thank you! If I can be of assistance, please call me at (423) 425-4232 or email me at [email protected].

UT Campus Development Report – FY 2016 Below are fundraising totals for the University of Tennessee System campuses and institutes for fiscal year 2016. CAMPUS DEVELOPMENT REPORT USING CAMPAIGN COUNTING July 1, 2015 – June 30, 2016 CHANGE GIFTS & PLANNED PRIVATE THIS CAMPUS PLEDGES GIVING GRANTS TOTALS MONTH Institute of Agriculture $9,325,735 $4,037,000 $865,412 $14,228,148 $6,037,211 HSC-Medical Center $1,298,403 $0 $66,766 $1,365,169 $270,631 HSC-Memphis $31,867,102 $1,836,233 $3,879,737 $37,583,072 $2,666,331 UTC $9,552,972 $5,340,659 $165,556 $15,059,187 $379,054 UTK $88,328,331 $75,407,453 $3,475,470 $167,211,254 $7,716,274 UTM $3,412,496 $835,778 $0 $4,248,274 $815,776 UT System $566,338 $0 $0 $566,338 $80,958 TOTAL $144,351,377 $87,457,123 $8,452,941 $240,261,442 $17,966,235

UTC Campus Development Report – FY 2016 Below are fundraising results for fiscal year 2016 for the UTC campus. UTC CAMPUS DEVELOPMENT REPORT USING CAMPAIGN COUNTING LOGIC July 1, 2015 – June 30, 2016 CHANGE GIFTS & PLANNED PRIVATE THIS COLLEGE PLEDGES GIVING GRANTS TOTALS MONTH Arts & Sciences $1,078,298 $415,659 $9,605 $1,503,562 $10,541 Business $1,261,585 $900,000 $0 $2,161,585 -$140 CECS $970,246 $0 $55,951 $1,026,197 $25,941 CHEPS $756,293 $800,000 $0 $1,556,293 $11,690 Athletics $1,869,493 $0 $0 $1,869,493 $212,431 Library $97,192 $0 $0 $97,192 $7,300 WUTC $1,821,870 $0 $0 $1,821,870 $66,522 Honors College $126,591 $1,562,500 $0 $1,689,091 $1,347 Campus Wide $1,571,404 $1,662,500 $100,000 $3,333,904 $43,422 TOTAL $9,552,972 $5,340,659 $165,556 $15,059,187 $379,054

Executive Director’s Report 2 | P a g e UTC FYTD Comparison – FY 2016 Below is a three-year comparison for UTC. We ended the fiscal year with a 4% increase in dollars raised (new gifts and pledges), over last year, we were slightly down in total dollars for cash receipts with a decrease of 5% and we were up 919 total donors this year representing a 15% increase. UT CHATTANOOGA FYTD COMPARISON July 1, 2015 – June 30, 2016 Dollars Raised* Cash Receipts Number of Donors**

College FYTD FYTD FYTD FYTD FYTD FYTD FYTD FYTD FYTD 2014 2015 2016 2014 2015 2016 2014 2015 2016 Arts & $296,795 $846,989 $1,503,562 $360,405 $458,354 $783,139 555 446 737 Sciences Business $715,309 $2,116,579 $2,161,585 $591,786 $2,030,073 $798,536 318 282 344 CECS $592,696 $1,417,417 $1,026,197 $519,512 $526,028 $312,262 152 148 126 CHEPS $504,141 $566,992 $1,556,293 $909,946 $951,461 $2,307,924 446 313 304 Athletics $2,066,461 $1,381,275 $1,869,493 $2,016,911 $1,255,157 $1,273,508 1,249 1,274 1,652 Library $86,050 $24,499 $97,192 $60,550 $47,837 $104,174 64 47 45 WUTC $505,533 $779,448 $1,821,870 $505,629 $778,953 $771,932 2,683 3,099 3,097

Honors $0 $0 $1,689,091 $0 $0 $217,614 0 0 159 College Campus $1,608,151 $7,350,912 $3,333,904 $2,208,210 $2,136,383 $1,192,084 1,315 885 1,101 Wide Grand $6,375,134 $14,484,112 $15,059,187 $7,172,949 $8,184,245 $7,761,171 6,161 6,024 6,943 Total

UT Campus Development Report – FY 2017 Below are fundraising totals for the University of Tennessee System campuses and institutes. CAMPUS DEVELOPMENT REPORT USING CAMPAIGN COUNTING July 1, 2016 – August 31, 2016 CHANGE GIFTS & PLANNED PRIVATE THIS CAMPUS PLEDGES GIVING GRANTS TOTALS MONTH Institute of Agriculture $521,734 $216,000 $59,900 $797,634 $495,772 HSC-Medical Center $251,676 $0 $152 $251,828 $101,922 HSC-Memphis $1,640,151 $0 $337,634 $1,977,785 $1,345,932 UTC $922,371 $200,000 $261,880 $1,384,251 $396,211 UTK $13,954,094 $4,888,391 $20,000 $18,862,485 $11,668,358 UTM $788,170 $0 $0 $788,170 $287,800 UT System $69,570 $0 $110,000 $179,570 $155,986 TOTAL $18,147,767 $5,304,391 $789,566 $24,241,723 $14,451,982

Executive Director’s Report 3 | P a g e UTC Campus Development Report – FY 2017 Below are fundraising results (July 1,2016 through August 31, 2016) for the UTC campus. UTC CAMPUS DEVELOPMENT REPORT USING CAMPAIGN COUNTING LOGIC July 1, 2015 – August 31, 2016 CHANGE GIFTS & PLANNED PRIVATE THIS COLLEGE PLEDGES GIVING GRANTS TOTALS MONTH Arts & Sciences $13,433 $100,000 $39,580 $153,013 $10,874 Business $159,877 $100,000 $0 $259,877 $9,202 CECS $67,922 $0 $202,334 $270,256 $4,212 CHEPS $245,902 $0 $0 $245,902 $84,697 Athletics $221,546 $0 $0 $221,546 $130,807 Library $1,188 $0 $0 $1,188 $1,188 WUTC $160,536 $0 $0 $160,536 $137,273 Honors College $25,437 $0 $0 $25,437 $5,490 Campus Wide $26,530 $0 $19,966 $46,496 $12,468 TOTAL $922,371 $200,000 $261,880 $1,384,251 $396,211

UTC FYTD Comparison – FY 2017 Below is a three-year comparison for UTC. We are tracking slightly behind in “Dollars Raised” (new gifts and pledges), in cash receipts but we are tracking ahead in total number of donors. We continue to be optimistic about results for the upcoming months. UT CHATTANOOGA FYTD COMPARISON July 1, 2015 – August 31, 2016 Dollars Raised* Cash Receipts Number of Donors** College FYTD FYTD FYTD FYTD FYTD FYTD FYTD FYTD FYTD 2014 2015 2016 2014 2015 2016 2014 2015 2016

Arts & Sciences $35,069 $79,161 $153,013 $17,562 $38,887 $44,994 101 124 85 Business $112,855 $482,751 $259,877 $110,515 $221,726 $178,670 58 62 41 CECS $21,647 $394,533 $270,256 $6,579 $44,026 $266,648 26 25 27 CHEPS $26,855 $569,393 $245,902 $518,461 $544,186 $68,736 107 84 81 Athletics $132,135 $140,072 $221,546 $185,114 $100,859 $171,520 344 303 374 Library $423 $2,103 $1,188 $281 $491 $136 10 11 12 WUTC $60,768 $53,452 $160,536 $59,940 $55,490 $55,491 880 765 973 Honors College $0 $0 $25,437 $0 $13,272 $20,674 0 16 17

Campus Wide $129,844 $261,841 $46,496 $160,712 $219,364 $37,844 243 151 195

Grand Total $519,597 $1,983,307 $1,384,251 $1,059,164 $1,238,303 $844,714 1,703 1,488 1,727

Executive Director’s Report 4 | P a g e