Agenda Item: 6B Board of Trustees June 20, 2006 Issue: DSO Budgets Proposed Action: Review Background Information: Budgets

Agenda Item: 6B

Board of Trustees June 20, 2006

Issue: DSO Budgets

Proposed action: Review

Background information: Budgets for UNF’s three Direct Support Organizations, the University of North Florida’s Financing Corporation, the Training and At a prior Finance and Audit Committee meeting, members of the committee requested periodic reviews of DSO budgets. Both TSI and the Foundation have approved new budgets over the past two months. These budgets were presented to the Finance and Audit Committee.

These budgets are now being presented to the full Board for review.

Attachments: • Foundation Budget • TSI Budget

UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

FY 2007 APPROVED BUDGETS

The FY 2007 Foundation budgets were approved at the UNF Foundation Board Meeting on June 7, 2006. Increase/(Decrease)

FY 2005-2006 FY 2006-2007 REVENUE Approved Budgets Approved Budgets Amount Percent Beginning Cash on Deposit (Reserves) $ 529,656 $ 500,000 *

REVENUE Contributions (Cash) $ 240,000 $ 275,000 $ 35,000 15% Contributions (Non-Cash, Other) - - - - Contributions (Non-Cash, Securities) - - - - Management Fee from Endowment 812,500 937,500 125,000 15% Investment Earnings - Non-Endowed Trust ** 300,000 367,500 67,500 23% Total Revenue $ 1,352,500 $ 1,580,000 $ 227,500 17%

EXPENDITURES - Recurring Institutional Advancement - Vice President's Office $ 33,218 $ 34,215 $ 997 3% Donor Recognition - Cultivation 25,600 40,600 15,000 59% Development Salaries 223,911 242,000 18,089 8% Development Expenses 82,969 88,969 6,000 7% Presidential Emoluments, Salary and Fringe Benefits 109,000 124,000 15,000 14% President's Discretionary 26,525 31,525 5,000 19% UNF Board of Trustees - Operating 9,300 19,300 10,000 108% Governmental Affairs 13,725 14,137 412 3% Academic Programs - Faculty & Staff Recognition 24,500 24,500 - 0% Foundation Board Operations, Reports 24,550 26,287 1,737 7% Advancements Services 26,880 31,880 5,000 19% Foundation Accounting 387,245 422,245 35,000 9% Presidential Lecture Series 55,000 55,000 - 0% Board Initiatives 55,000 60,000 5,000 9% Investment Management/Consultant Fee 50,000 - (50,000) -100% Academic Scholarships 107,000 122,000 15,000 14% Alumni Relations 51,984 53,544 1,560 3% Total Expenditures - Recurring $ 1,306,407 $ 1,390,202 $ 83,795 6%

EXPENDITURES - Non-Recurring Campaign Fund Reserves $ 150,000 $ 125,000 $ (25,000) -17% Investment Management/Consultant Fee 20,000 - (20,000) -100% Presidential Incidental Reserves 25,000 30,000 5,000 20% Total Expenditures - Non-Recurring $ 195,000 $ 155,000 $ (40,000) -21%

Total Expenditures $ 1,501,407 $ 1,545,202 $ 43,795 3%

Total Revenue Over(Under) Expenditures $ (148,907) $ 34,798

Ending Cash on Deposit (Reserves) $ 380,749 *** $ 534,798

* Estimated Beginning Cash on Deposit ** The Non-endowed investment earnings are reinvested and are available upon request. *** Revenue is projected to be higher than budget and expenditures are projected to be lower than budget, therefore, Ending Cash on Deposit is estimated to be $500,000. PROPOSED UNRESTRICTED OPERATING BUDGET JULY 1, 2006 THROUGH JUNE 30, 2007 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

Current Year Proposed Proposed FY 2006 Change FY 2007 RECURRING EXPENDITURES

I. FOUNDATION/INSTITUTIONAL ADVANCEMENT OPERATIONS

INSTITUTIONAL ADVANCEMENT OPERATING (0151-3001-11) $33,218 $997 $34,215 3% Account has two purposes: 1) Expenses for travel, donor cultivation, searches for staff positions, and special project funding which can be accomplished only with private support ($22,000). 2) Emoluments for Institutional Advancement Vice President/Executive Director which include car, club membership and dues/ expenses related to several key civic organizations ($12,215).

(Increases in activities and operating expenses.)

DONOR RECOGNITION AND CULTIVATION (0158-3008-11) $25,600 $15,000 $40,600 59% The Foundation recognizes the importance of awards and acknowledgements for those who have assisted the University. Areas of support include incentive gifts, newly implemented donor recognition gift clubs, receptions prior to cultural or athletic events, representation at community events and special fund-raising projects which cannot be supported with state revenue.

Increases in activities and operating expenses for six new events ($12,000), funds for media relations ($1,500) and scholarship stewardship ($1,500).

DEVELOPMENT (0160-3010-11) $306,880 $24,089 $330,969 8% Account has two purposes: 1) Support for major gifts, annual giving, constituent programs and planned giving and corporate and foundation relations development activities. Numerous expenditures are incurred in connection with fund-raising activities such as stationery, duplicating, telephone (including mobile phones), charges in support of special events, part-time student labor, travel for development officers involved in major gifts fund-raising and professional education ($88,969). 2) Salaries and benefits for two .5 FTE college development officers and one 1 FTE manager ($242,000).

(Increase of $6,000 for fundraising operating expenses ($1,000 AG, $4,000 CP and $1,000 PG)

PRESIDENTIAL EMOLUMENTS (0169-3019-11) $109,000 $15,000 $124,000 14% The University Board of Trustees has requested and approved a total presidential compensation plan including auto lease and expenses, salary supplement , annual physical and club and civic memberships.

(Estimated increase in emoluments by BOT in Fall 2006 after annual review.)

PROPOSED UNRESTRICTED OPERATING BUDGET JULY 1, 2006 THROUGH JUNE 30, 2007 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

Current Year Proposed Proposed FY 2006 Change FY 2007

PRESIDENT'S DISCRETIONARY (0168-3018-11) $26,525 $5,000 $31,525 19% The Foundation endorses the President's active participation in the entertainment of propsective donors and the continued stewardship of past past donors, and recognizes that this leadership role will enhance the overall assets of the Foundation.

(Increase in activities and expenses.)

BOARD OF TRUSTEES OPERATING (0163-3013-11) $9,300 $10,000 $19,300 108% UNF Board of Trustees operating fund for meetings and other business related to UNF.

(Increase for assessment by Board of Governors.)

GOVERNMENTAL AFFAIRS (0167-3017-11) $13,725 $412 $14,137 3% Assist the University in promoting its mission of teaching, research and public service at all levels of government. The Director of Governmental Affairs monitors activities on legislation in Jacksonville, Tallahassee and Washington.

(Increase in activities and travel expenses.)

FACULTY/STAFF RECOGNITION & AWARDS (0161-3011-11) $24,500 $0 $24,500 0% The Foundation sponsors cash awards for the distinguished professor for teaching excellence, outstanding research faculty, outstanding service faculty, employee of the year awards and employee recognition. Also sponsors a faculty or staff member for Leadership Jacksonville.

(No increase.)

FOUNDATION BOARD OPERATING (0159-3009-11) $24,550 $1,737 $26,287 7% Annual expenses for operations of the Foundation such as stationery, office supplies, Board packets, committee meetings and quarterly meetings. Reports to be distributed each year include UNF Foundation Annual Report and Endowment Report.

(Increase for operating expenses ($737) and Committee on Directors ($1,000).)

PROPOSED UNRESTRICTED OPERATING BUDGET JULY 1, 2006 THROUGH JUNE 30, 2007 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

Current Year Proposed Proposed FY 2006 Change FY 2007

ADVANCEMENT SERVICES (0152-3002-11) $26,880 $5,000 $31,880 19% Department within the Division of Institutional Advancement manages the donor database to insure accuracy of alumni and friends addresses and other information. Advancement Services also processes donor gifts, prepares acknowledgement letters, compiles donor gift histories, prepares and disseminates a variety of weekly, monthly and quarterly management reports and oversees research function.

(Increase for operating expenses in the area of research databases as well as increases for gift acknowledgement activities.)

AUDIT AND FINANCIAL SERVICES (0156-3006-11) $387,245 $35,000 $422,245 9% Account has two purposes: 1) Foundation Accounting provides services necessary in areas of accounting and reporting, investments, including pooled investments, sales and unrelated business income tax filings, nonresident alien visa transactions and other tasks necessary to assure compliance with donor gift agreements and exercise of the Foundation's fiduciary responsibility, and salaries and benefits ($372,991), 2) Audit expense ($49,254).

(Increase for payroll and audit expenses.)

ALUMNI RELATIONS (0153-3003-11) $51,984 $1,560 $53,544 3% The Foundation supports activities of the National Alumni Association including special events and projects, alumni recognition, recruitment efforts and Student Alumni Association.

(Increase in travel and operating expenses.)

INVESTMENT MANAGEMENT CONSULTANT FEES (0166-3016-11) $50,000 ($50,000) $0 -100% The Foundation utilizes the services of an investment consulting firm for advice on the portfolio of endowed funds and non-endowed accounts.

(Line item no longer necessary because of restructuring of how the endowment is managed.) SUBTOTAL FOUNDATION/INSTITUTIONAL ADVANCEMENT OPERATIONS $1,089,407 $63,796 $1,153,203 6% PROPOSED UNRESTRICTED OPERATING BUDGET JULY 1, 2006 THROUGH JUNE 30, 2007 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

Current Year Proposed Proposed FY 2006 Change FY 2007

II. BOARD SUPPORTED ACTIVITIES

PRESIDENTIAL LECTURE SERIES (0170-3020-11) $55,000 $0 $55,000 0% The Foundation will help underwrite one or two lectures annually. Speakers will be of national and international stature. All lectures will be free to the public.

(No increase.)

FOUNDATION BOARD INITIATIVES (0165-3015-11) $55,000 $5,000 $60,000 9% Each year the Foundation Board members fund several priority projects of the University which are recommended by the President of the University of North Florida. The objective is to enhance the academic experience for students and faculty.

(Increase the number of projects funded.)

ACADEMIC SCHOLARSHIP (0162-3012-31) $107,000 $15,000 $122,000 14% The Foundation recognizes the value of providing scholarship dollars for students which includes $50,000 for the general scholarship fund, $5,000 for the UNF Drumline, $3,000 for the Presidential Trio, $29,000 for merit scholarships and $20,000 for use by Assistant Director of Foundation Scholarships to attract and retain outstanding students.

(Replaces unrestricted gift from donor who has established an ednowment.)

SUBTOTAL BOARD SUPPORTED ACTIVITIES $217,000 $20,000 $237,000 9%

SUBTOTAL RECURRING EXPENDITURES $1,306,407 $83,796 $1,390,203 6% PROPOSED UNRESTRICTED OPERATING BUDGET JULY 1, 2006 THROUGH JUNE 30, 2007 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC.

Current Year Proposed Proposed FY 2006 Change FY 2007

NON-RECURRING EXPENDITURES

CAMPAIGN FOR UNF (0173-3023-11) $150,000 ($25,000) $125,000 -17% (Continue planning Endowment Campaign Feasibility Study to increase endowment from $70M to $100M by 2010.)

PRESIDENT'S INCIDENTAL RESERVES (0172-3022-11) $25,000 $5,000 $30,000 20% Unanticipated expenses for use by the President and subsequently reported to the Board.

(First increase since fund was established five years ago.)

INVESTMENT MANAGEMENT CONSULTANT FEES (0166-3016-11) $20,000 ($20,000) $0 -100% The Foundation utilizes the services of an investment consulting firm for advice on the portfolio of endowed funds and non-endowed accounts. Search for services are in addition to regular fee.

(Line item no longer necessary.)

SUBTOTAL NON-RECURRING EXPENDITURES $195,000 ($40,000) $155,000 -21%

TOTAL EXPENDITURES $1,501,407 $43,796 $1,545,202 3%

ESTIMATED RESERVES $500,000 $534,798 UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC. Balance Sheet Comparative Totals (without audit) March 31, 2006 and March 31, 2005

March 31, 2006 March 31, 2005 Change ASSETS Total Total Amount Percent Note Cash & Cash Equivalents $ 161,356 377,284 -215,928 -57% Non-Endowed Investments 12,381,785 8,812,731 3,569,054 40% Total $ 12,543,141 9,190,015 3,353,126 36% 1 Endowed Pooled Investments 70,761,264 61,214,559 9,546,705 16% 2 Endowed Non-Pooled Investments 743,071 664,705 78,366 12% Cash on Deposit with UNF 23,861,088 19,957,227 3,903,861 20% 3 #REF! 558,127 487,424 70,703 15% Life Insurance Policy 99,962 99,962 -- -- Prepaid Expenses 20,106 98,834 -78,728 -80% 4 Accounts Receivable - Other 20,243 22,888 -2,645 -12% Equipment - Other 35,258 - 35,258 -- Buildings, Equipment, and Land Improvements 59,979,661 60,233,876 -254,215 -- 5 Less: Accumulated Depreciation (23,979,052) (21,127,910) -2,851,142 13% 5 Construction in Progress - 223,250 -223,250 -100% 6 Bond Issue Costs 370,617 387,937 -17,320 -4% Bond Redemption Account Held by Trustee 4,306 1,249 3,058 245% Bond Service - Wachovia 16 16 -- -- Total Assets $ 145,017,808 131,454,030 13,563,778 10%

LIABILITIES AND FUND BALANCES Liabilities Annuity Payable $ 268,386 243,821 24,565 10% Accounts Payable 16,395 - 16,395 -- Notes Payable 50,000 100,000 -50,000 -50% 7 Lease Payable 22,879 - 22,879 -- Compensated Absences 13,620 19,734 -6,114 -31% Deferred Revenue - 144,645 -144,645 -100% 8 Security Deposits Payable - 133,346 -133,346 -100% 8 Bonds Payable (Long Term) 45,300,000 46,500,000 -1,200,000 -3% 9 Total Liabilities $ 45,671,280 47,141,545 -1,470,265 -3%

Fund Balances $ 99,346,528 84,312,485 15,034,043 18% Total Liabilities and Fund Balances $ 145,017,808 131,454,030 13,563,778 10% Notes 1. Reflects a combination of non-endowed contributions and market performance. 2. Reflects a combination of endowed contributions ($5,774,294) and endowed market performance. 3. Represents Housing and Parking funds available for debt service and operating expenses, and includes required reserves. 4. Represents a decrease in purchases that require pre-payment for events. 5. Represents the Housing and Parking equipment or Parking improvements and depreciation in accordance with established schedules. 6. Reduction represents capitalization of Parking improvement project. 7. Represents a scheduled payment by the University Center on its note payable to UNF Training & Services Institute, Inc. 8. Reflects a change in Housing policy from recording deposits to a required prepayment of rent (deferred revenue). 9. Reflects principal payments on the Housing ($900,000) and Parking ($300,000) Revenue Bonds.

UNIVERSITY OF NORTH FLORIDA FOUNDATION, INC. Revenue and Expenditure Comparative Totals (without audit) For the nine months ended March 31, 2006 and March 31, 2005

March 31, 2006 March 31, 2005 Change REVENUE Total Total Amount Percent Note Contributions $ 6,117,260 3,063,015 3,054,245 100% Contributions - In-Kind Gifts 131,401 148,459 -17,058 -11% Contributions - Securities 114,724 3,234,900 -3,120,176 -96% Contributions - State Matching 3,625,270 5,160,872 -1,535,602 -30% Total Contributions $ 9,988,655 11,607,246 -1,618,591 -14% 1 Miscellaneous Sales 51,430 65,953 -14,523 -22% 2 Parking 2,755,287 2,210,882 544,405 25% 3 Student Housing Fees 8,291,765 7,404,451 887,314 12% 4 Investment Income [realized and unrealized]: Endowed (Pooled) 5,820,347 2,255,471 3,564,876 158% 5 Endowed (Non-Pooled) 68,418 31,821 36,597 115% 5 Non-Endowed and Plant 878,259 242,579 635,681 262% 6 Miscellaneous Revenue 129,624 587,167 -457,542 -78% 2 Total Revenue $ 27,983,786 24,405,569 3,578,217 15%

EXPENDITURES Scholarships, Fellowships and Study Abroad $ 1,277,574 1,178,730 98,844 8% 7 Personal Services 760,266 547,491 212,775 39% 8 Professional Fees 852,319 268,676 583,643 217% 8 Equipment and Software 37,001 57,670 -20,669 -36% Equipment transferred to UNF 105,261 135,973 -30,712 -23% Operating Expenses 5,726,870 5,848,762 -121,892 -2% 9 Transferred to UNF - Courtelis Match 531,953 112,806 419,147 372% 10 Interest Expense 978,280 414,056 564,224 136% Amortization 12,990 12,990 -- -- Depreciation Expense 2,019,767 1,848,933 170,834 9% Total Expenditures $ 12,302,279 10,426,088 1,876,192 18%

Revenue Over/(Under) Expenditures $ 15,681,506 13,979,482 1,702,025 12% Beginning Fund Balance 83,665,022 70,333,003 13,332,019 19% Ending Fund Balance $ 99,346,528 84,312,485 15,034,044 18% Notes 1. Reflects a decrease in contributions, in-kind gifts, securities and State matching of prior year's gifts. 2. Reflects implementation of a change in policy to record non-gift revenue in University accounts. 3. Reflects increased Parking rates and traffic fine payments. 4. Reflects increased Housing rental and occupancy rates. 5. Reflects market performance, an increase in the pooled and non-pooled endowed realized earnings and unrealized earnings. 6. Represents an increase in the non-endowed realized and unrealized market value from prior year. 7. Reflects an increase in the amount paid toward Fall 2004 and Spring 2005 scholarships ($1,231,958), fellowships ($32,016) and study abroad ($13,600.) 8. Represents an increase in purchases of contracted and professional services. 9. Reflects a decrease in the operating expenses of primarily the plant funds. 10. Reflects an increase in the contributions received for Courtelis Match Program projects in calendar year (CY) 2004 vs. CY 2005. The $531,953 provides construction funds for the following projects: 1) $8,993 University Center, 2) $60,898 Fine Arts Complex, $460,062 Science & Engineering Building and $2,000 Carpenter Library. UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. FY 2007 APPROVED BUDGETS

The FY 2007 Budgets for IPTM, PSI and TSI Administration were approved at the TSI Board of Directors Meeting on May 18, 2006.

FY 2007 TSI Board of Directors Approved Budgets for Institute of Police Technology Management Public Safety Institute REVENUE (IPTM) (PSI) TSI Administration * Tuition $ 2,270,000 $ 633,420 $ - Contracts 1,758,885 49,350 - Grants 3,000,000 - - Sales - Computer 300,000 - - Sales - Publications 320,000 - - Sales - Other 1,880 - - Radar Testing Revenue 105,375 - - Refunds (94,805) (45,645) - IPTM Overhead Assessment (5% of Revenue) - - 387,807 TSI Investment Income - - 635,000 UNF Foundation (Cost Reimbursement) - - 422,245 PSI Overhead Assessment (5% of Revenue) - - 34,139 Total Revenue $ 7,661,335 $ 637,125 $ 1,479,191

EXPENDITURES - Recurring Administration Salaries and Fringe Benefits $ 2,170,000 $ 114,000 $ 797,594 Administration- Other Personal Services 100,000 10,000 9,000 Administration - Operating Expenses (OE) 500,000 30,400 89,000 Administration - Audit Expenses (UNF TSI and UNF Foundation) - - 75,000 Administration - Operating Capital Outlay 50,000 5,000 5,000 IPTM and PSI Course Expenses (CE) CE - Contract Instructors 896,200 205,000 - CE - Operating Expenses 2,470,000 127,200 - CE - Operating Capital Outlay 375,000 - - CE - Transfers to TSI Administration (overhead 5%) 387,807 34,139 - TSI - University Administration (UA) UA - President's Salary and Fringe Benefits - - 185,133 UA - Other salaries and Fringe Benefits - - 12,000 UA - Governmental Relations - - 68,500 UA - Operating Expenses - - 25,000 UA - University Center Parking - - 22,107 UA - Outside Legal Counsel - - 20,000 TSI - First Coast Technology Park - Operating Expenses - - 96,000 TSI - Faculty Development - - 50,000 Total Expenditures $ 6,949,007 $ 525,739 $ 1,454,334

Total Revenue Over/(Under) Expenditures $ 712,328 $ 111,386 $ 24,857

UNF Training & Services Intstitute GRAND TOTAL Amount Total Revenue $ 9,777,651 Less Total Expenditures 8,929,080 Total Revenue Over(Under) Expenditures $ 848,571

* TSI Administration - TSI/Foundation Accounting, University Administration, Faculty Development and First Coast Technology Park UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. TSI ADMINISTRATION ACCOUNTS (TSI/Foundation Accounting, University Administration, Faculty Development and First Coast Technology Park)

FISCAL YEAR 2007 BUDGET REQUEST

FY 2006 FY 2007 TSI Administration B-2 Approved BUDGET Increase/(Decrease) ITEM # REVENUE Budget REQUEST Amount Percent IPTM Overhead Assessment (5% of Revenue) $ 374,650 $ 387,807 $ 13,157 4% 1 TSI Investment Income 260,000 635,000 375,000 144% UNF Foundation (Cost Reimbursement) 387,245 422,245 35,000 9% PSI Overhead Assessment (5% of Revenue) 32,000 34,139 2,139 7% Total TSI Administration Proposed Revenue $ 1,053,895 $ 1,479,191 $ 425,296 40%

FY 2006 FY 2007 TSI Administration B-2 Approved BUDGET Increase/(Decrease) ITEM # EXPENDITURES Budget REQUEST Amount Percent a) TSI/FDN Accounting Other Personal Services $ 10,000 $ 9,000 $ (1,000) -10% Operating Expenses (OE) - Recurring 89,000 89,000 - 0% Operating Capital Outlay - Recurring 10,000 5,000 (5,000) -50% 2 OE Audit Expenses 70,412 75,000 4,588 7% 3 TSI/FDN Acctg - Salaries and Fringe Benefits 679,415 797,594 118,179 17% TSI/FDN Accounting Total OPS, OE, OCO $ 858,827 $ 975,594 $ 116,767 14%

b) University Administration Operating Expenses - Recurring $ 25,000 $ 25,000 $ - 0% 4 UA - University Center Parking 20,325 22,107 1,782 9% UA - Governmental Relations 68,500 68,500 - 0% UA - Outside Legal Counsel 20,000 20,000 - 0% 5 UA - Other salaries 13,067 12,000 (1,067) -8% 6 UA - President's Salary and Fringe Benefits 115,100 185,133 70,033 61% University Administration Total Operating Expenses $ 261,992 $ 332,740 $ 70,748 27%

c) University Academic Affairs Faculty Development $ 50,000 $ 50,000 $ - 0%

d) First Coast Technology Park Operating Expenses $ 135,800 $ 96,000 $ (39,800) -29%

TSI Administration Proposed - Total Expenditures $ 1,306,619 $ 1,454,334 $ 147,715 11%

Revenues Over/(Under) Expenditures $ (252,724) $ 24,857 $ 277,581 -110%

NOTE: 1) FY 2007 Budget request increases or (decreases) justifications are on the attached B-2 Forms as numbered above. 2) All increases are considered recurring. B-2 Form

University of North Florida Training & Services Institute, Inc.

FY 2006-2007 BUDGET REQUESTS [OPS/OE/OCO]

Division: Administration & Finance

Department: TSI/FOUNDATION ACCOUNTING and TSI UNIVERSITY ADMINISTRATION

Please complete this form for each item for which funding is being requested outside your base allocation.

Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

REVENUE

1 TSI Investment Income $635,000

TSI investment income is forecast in the following table:

FY 2007 TSI Investment Income Forecast @ 6% Return Current Amount Invested (March 2006) $ 6,643,337 Amount of forecast withdrawals through June 30, 2006 (950,000) six Amount Invested at July - December 2006 $ 5,693,337 $ 341,600 months

Amount of forecast withdrawals July - December 2006 (800,000) six Amount Invested at January - June 2007 $ 4,893,337 293,600 months Total $ 635,200

FY 2007 Investment Income Budget $ 635,000

NOTE: The TSI Commitment withdrawals not noted in the table will be accomplished via TSI operations cash flow.

Page 1 of 3 B-2 Form UNF Training & Services Institute, Inc. FY 2006-2007 BUDGET REQUESTS [OPS/OE/OCO]

BUDGETS: TSI/Foundation Accounting and TSI University Administration – continued

Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

EXPENSES

2 TSI and Foundation Audit $ 75,000 The increase of $4,588 is based on implementation of new State required certification of the Major Gifts program – Florida Single Audit Act and a presentation to the SUS DSO Financial Directors FY 2007 Annual meeting regarding not-for-profit hot topics and accounting industry changes.

3 TFA Salaries and Fringe Benefits (FB) $797,594

The TSI/Foundation Accounting (TFA) salaries and fringe benefits increase total $118,179. The FY 2007 request includes the recurring cost for positions hired in 2006 Quarter 3; estimated 4% salary increase and FB @ 26%; and a new position request for Foundation Accounting - Coordinator, Accounting.

FY 2007 TSI/Foundation Accounting SALARIES BUDGET Foundation TSI TOTAL TFA SALARIES $ 197,003 $ 197,003 $ 394,006 4 positions at 50/50 104,316 104,316 208,632 TOTAL SALARIES $ 301,319 $ 301,319 $ 602,638 TFA Salaries Fringe Benefits 78,343 78,343 156,686 4% salary increase and FB 19,135 19,135 38,270

Total FY 2007 Salaries & Sal increases $ 398,797 $ 398,797 $ 797,594

New Position Justification – Coordinator, Accounting – Salary w/ est. 4% increase - $43,680 + FB $11,357 = Total: $55,037:

This position will report to the Associate Director of UNF Foundation (FDN) Accounting: responsible for the management of the FDN Accounting daily operations; recommends new fiscal and accounting procedures to ensure compliance with rules, and to ensure effective and efficient program operations. This includes supervision of two Senior Accountants. The daily/monthly functions includes processing check requisitions, interfund transfers, investment reconciliations, scholarship requisitions, cash receipts downloads (contributions), endowment accounting, etc. The Coordinator will serve as manager in charge of Foundation Accounting in the absence of the Associate Director and Director.

Page 2 of 3 B-2 Form UNF Training & Services Institute, Inc. FY 2006-2007 BUDGET REQUESTS [OPS/OE/OCO]

BUDGETS: TSI/Foundation Accounting and TSI University Administration – continued

Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

EXPENSES

4 UA – University Center Parking $ 22,107 The increase of $1,782 reflects the FY 2007 parking passes increase for the average number of weekly IPTM student parking (66) at the general rate; 15 designated for IPTM cars and equipment; and $1,695 for the annual Special Problems week conference.

5 TSI – Other Salaries and Benefits $ 12,000

The decrease of $1,067 reflects the actual amounts required for the 10% salary of the liaison for IPTM:

FY 2006 – 10% salary actual $8,288 fringe benefits 2,984 $11,272

FY 2007 - 4% salary increase est. $ 332 fringe benefits 119 contingency 277 728 Total $12,000

6 TSI – President Salary and Fringe Benefits $185,133

The $70,033 increase reflects the TSI portion of the President’s salary package.

EXPECTED OUTCOME OR BENEFIT(S):

Benefit: To increase the efficiency of operations and customer service.

Page 3 of 3 UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. FY 2007 APPROVED BUDGETS

FY 2007 Budgets for IPTM, PSI and TSI Administration were approved at the TSI Board of Directors Meeting on May 18, 2006.

EXPENDITURES - Recurring Salaries and Fringe Benefits $ 2,170,000 $ 114,000 $ 797,594 Administrative - Other Personal Services 100,000 10,000 9,000 Administrative - Operating Expenses (OE) 500,000 30,400 89,000 Administrative - Audit Expenses (UNF TSI and UNF Foundation) - - 75,000 Administrative - Operating Capital Outlay 50,000 5,000 5,000 IPTM and PSI Course Expenses (CE) CE - Contract Instructors 896,200 205,000 - CE - Operating Expenses 2,470,000 127,200 - CE - Operating Capital Outlay 375,000 - - CE - Transfers to TSI Administration (overhead 5%) 387,807 34,139 - TSI - University Administration (UA) UA - President's Salary and Fringe Benefits - - 185,133 UA - Operating Expenses - - 25,000 UA - Governmental Relations - - 68,500 UA - University Center Parking - - 22,107 UA - Outside Legal Counsel - - 20,000 UA - Other salaries and Fringe Benefits - - 12,000 TSI - First Coast Technology Park - Operating Expenses - - 96,000 TSI - Faculty Development - - 50,000 Total Expenditures $ 6,949,007 $ 525,739 $ 1,454,334

Revenues Over/(Under) Expenditures $ 712,328 $ 111,386 $ 24,857

* TSI/Foundation Accounting, University Administration, Faculty Development and First Coast Technology Park UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICE INSTITUTE, INC. INSTITUTE OF POLICE TECHNOLOGY MANAGEMENT (IPTM)

FISCAL YEAR 2007 BUDGET REQUEST

FY 2006 FY 2007 IPTM B-2 Approved BUDGET Increase/(Decrease) Item # REVENUE Budget REQUEST Amount Percent Tuition $ 2,150,000 $ 2,270,000 $ 120,000 6% Contracts 1,650,000 1,758,885 108,885 7% Grants 3,000,000 3,000,000 - 0% Sales - Computer 240,000 300,000 60,000 25% Sales - Publications 320,000 320,000 - 0% Sales - Other 1,000 1,880 880 88% Radar Testing Revenue 132,000 105,375 (26,625) -20% Refunds (65,000) (94,805) (29,805) 46% Miscellaneous - Other - - - -- 1 Total Proposed Revenue $ 7,428,000 $ 7,661,335 $ 233,335 3%

FY 2006 FY 2007 IPTM B-2 Approved BUDGET Increase/(Decrease) Item # EXPENDITURES Budget REQUEST Amount Percent IPTM - Administrative - Operating Expenses 2 Other Personal Services $ 60,000 $ 100,000 $ 40,000 67% Management Services - Non-Recurring 200,000 - (200,000) -100% 3 Administrative Operating Expenses 600,000 500,000 (100,000) -17% 4 Transfers Out to TSI Overhead - (5% of Revenue) 374,650 387,807 13,157 4% Operating Capital Outlay (OCO) 50,000 50,000 - 0% Salaries & Fringe Benefits 2,170,000 2,170,000 - 0%

IPTM - Course - Operating Expenses Contract Instructors 896,200 896,200 - 0% 5 Course Expenses 2,157,800 2,470,000 312,200 14% Operating Capital Outlay (OCO) 375,000 375,000 - 0%

IPTM PROPOSED - Total Expenditures $ 6,883,650 $ 6,949,007 $ 65,357 1%

Revenues Over/(Under) Expenditures $ 544,350 $ 712,328 $ 167,978 31%

NOTES: (1) FY 2007 Budget request increases or (decreases) justifications are on the attached B-2 Forms as numbered a (2) All increases are considered recurring.

Requested by: Bob Jacob B-2 Form

University of North Florida Training & Services Institute, Inc.

FY 2006-2007 BUDGET REQUESTS [OPS/OC/OCO]

Division Administration & Finance

Department Institute of Police Technology Management (IPTM)

Please complete this form for each item for which funding is being requested outside your base allocation. Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

Revenue

1 Total Revenue $ 7,661,335 A total increase of $233,335 is expected in revenue for tuition, contracts and computer software sales based on current experience and increase in pricing of contract courses.

Expenses

2 Administrative – Other Personal Services $100,000 The increase of $40,000 reflects the FY 2007 funding needed for current seven (7) OPS and student employees.

3 Administrative Operating Expenses $500,000 Reduced by $100,000 based on current estimates of expense needs.

4 Transfers Out to TSI Overhead (5%) $387,807 Reflects the increase of $13,157 based on the IPTM FY 2007 revenue projection.

Page 1 of 2 B-2 Form UNF Training & Services Institute, Inc. FY 2006-2007 BUDGET REQUESTS [OPS/OE/OCO]

BUDGETS: Institute of Police Technology Management (IPTM) – continued

Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

5 Course Expenses $2,470,000 The increase of $312,200 is attributed to the cost increases for travel (e.g. fuel, airfares, hotels, etc.) and course development expenses (e.g. non-employee compensation, curriculum development, printing course materials, etc.)

EXPECTED OUTCOME OR BENEFIT(S):

Benefit: To have appropriate level of operating funds for office operations, administration of grant operations, and course instruction.

Page 2 of 2 UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. PUBLIC SAFETY INSTITUTE (PSI)

FISCAL YEAR 2007 BUDGET REQUEST

FY 2006 FY 2007 PSI B-2 Approved BUDGET Increase/(Decrease) Item # REVENUE Budget REQUEST Amount Percent Tuition $ 520,000 $ 633,420 $ 113,420 22% Contracts 120,000 49,350 $ (70,650) -59% Refunds (30,000) (45,645) $ (15,645) 52% Miscellaneous - Other - - $ - -- 1 Total Proposed Revenue $ 610,000 $ 637,125 $ 27,125 4%

FY 2006 FY 2007 PSI Approved BUDGET Increase/(Decrease) B-2 EXPENDITURES Budget REQUEST Amount Percent Item # Administrative - Operating Expenses PSI - Other Personal Services (OPS) $ 10,000 $ 10,000 $ - 0% Administrative Operating Expenses 30,400 30,400 - 0% Management Services 18,000 0 (18,000) -100% 2 Transfers Out to TSI Overhead - (5% of Revenue) 32,000 34,139 2,139 7% 3 Salaries & Fringe Benefits 100,000 114,000 14,000 14% Operating Capital Outlay (OCO) 5,000 5,000 - 0%

PSI - Course - Operating Expenses Contract Instructors 205,000 205,000 - 0% Course Expenses 127,200 127,200 - 0% Operating Capital Outlay (OCO) 0 0 -

PSI PROPOSED - Total Expenditures $ 527,600 $ 525,739 $ (1,861) 0%

Revenues Over/(Under) Expenditures $ 82,400 $ 111,386 $ 28,986 35%

NOTES: (1) FY 2007 Budget request increases or (decreases) justifications are on the attached B-2 Forms as numbered above. (2) All increases are considered recurring.

Requested by: Bob Jacob B-2 Form University of North Florida Training & Services Institute, Inc.

FY 2006-2007 BUDGET REQUESTS [OPS/OC/OCO]

Division Administration & Finance

Department Public Safety Institute (PSI)

Please complete this form for each item for which funding is being requested outside your base allocation. Total Budget Requested: Item # Item Description and Justification Recurring Non-Recurring

Revenue

1 Total Revenue $ 637,125 The increase of $27,125 the sum of expected increase of $113,420 tuition revenue; a decrease in contract revenue of $70,650; and increase in refunds of $15,645.

Expenses

2 Transfers Out to TSI Overhead (5%) $34,139 Reflects slight increase of $2,139 based on to the PSI FY 2007 revenue projection.

3 Salaries and Fringe Benefits $114,000 The increase of $14,000 reflects the FY 2007 salary needed for current employees. (4% salary increase and fringe benefits)

EXPECTED OUTCOME OR BENEFIT(S):

Benefit: To have appropriate level of operating funds for administrative operations, and course instruction. UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. (TSI)

Balance Sheet Comparative Totals (without audit)

March 31, 2006 and March 31, 2005

March 31,2006 March 31,2005 Change Total Total Amount Percent Notes Assets Cash and cash equivalents $ 467,833 1,626,264 -1,158,432 -71% 1 Investment securities, at market 6,643,337 7,020,315 -376,978 -5% 2 Land - held for UNF 1,507,771 1,507,771 -- -- IPTM trademark/goodwill purchase - net 65,999 153,999 -88,000 -57% Notes receivable - Duval Research & Development Authority (RDA) 400,840 - 400,840 -- 3 Notes receivable - UNF University Center 50,000 100,000 -50,000 -50% Accounts receivable - UNF 140 44,000 -43,860 -100% 4 Accounts receivable (net of allowance - $90,000) 300,260 387,592 -87,332 -23% Grants receivable 550,725 172,546 378,179 219% 5 Inventory 124,540 135,698 -11,158 -8% Prepaid expenses 3,003 23,790 -20,787 -87% Equipment - Vehicles (net of depreciation) 15,288 27,095 -11,806 -44% Total Assets $ 10,129,737 11,199,069 -1,069,332 -10% 10

Liabilities and Fund Balance Compensated absences $ 273,384 251,381 22,003 9% Accounts payable 108,080 - 108,080 -- 6 EFT payable 16,155 70,678 -54,523 -77% Deferred revenue 38,115 27,520 10,595 38% Sales taxes payable 115 82 33 41% Total Liabilities $ 435,849 349,660 86,189 25%

Fund Balance Fund balance [Board] Restricted for IPTM and PSI salaries $ 1,000,000 # 1,000,000 -- -- Fund balance [Contractual] Restricted for IPTM course development - 350,000 -350,000 -100% 7 Fund balance [Board] Designated for Library Addition 1,237,791 3,000,000 -1,762,209 -59% 8 Fund balance [Board] Designated for Social Sciences Building 2,345,000 1,345,000 1,000,000 74% 9 Fund balance - Unrestricted 5,111,097 5,154,409 -43,312 -1% Total Fund Balance $ 9,693,888 10,849,409 -1,155,521 -11%

Total Liabilities and Fund Balance $ 10,129,737 11,199,069 -1,069,332 -10% 10

Notes: 1) Reflects a decrease in the amount held as cash to fund TSI's commitment to construction of the UNF Library. 2) Reflects a combination of withdrawals for TSI Library commitment payments and investment earnings. 3) Represents the amount remitted to the Duval RDA toward its up to $500,000 loan advance approved in May 2006. 4) Represents the return of funds on deposit for payroll from UNF, which are no longer needed now that payroll is processed by UNF Payroll Office. 5) The increase is attributed to the amount of grant items completed and claims processed greater than the same period in the prior fiscal year. 6) Represents accounts payable processed at month end. 7) Reflects the removal of the contract obligation for IPTM course development, which was released at the end of the contract with AJC, Inc. (Dec 2005) 8) Reflects the amount transferred to UNF for the TSI Library Commitment. 9) The increase represents the additional $1 million the Board committed for the Social Sciences Building aoproved in September 2005. 10) The 10% decrease represents the net of revenue (e.g. operational revenue and investment earnings) and operational expenditures (e.g. TSI Library commitment payments and operational expenses.) UNIVERSITY OF NORTH FLORIDA TRAINING & SERVICES INSTITUTE, INC. (TSI) Revenue and Expenditure Comparative Totals (without audit) For the nine months ended March 31, 2006 and March 31, 2005

March 31, 2006 March 31, 2005 Change Revenue Total Total Amount Percent Note Tuition $ 2,076,998 1,820,796 256,201 14% Contracts 1,120,382 1,165,357 -44,976 -4% Grants 2,628,662 2,483,256 145,406 6% Sales - Computer 260,810 177,200 83,610 47% Sales - Publications 231,382 246,020 -14,638 -6% Radar testing revenue 71,050 52,200 18,850 36% Sales - Other 1,273 797 476 60% Refunds (93,633) (77,167) -16,466 21% Total Operating Revenue $ 6,296,923 5,868,460 428,463 7% 1

IPTM overhead assessment 299,165 281,499 17,666 6% PSI overhead assessment 24,729 20,455 4,274 21% Investment earnings - realized 247,937 169,505 78,431 46% 2 Investment earnings - unrealized 593,296 325,194 268,102 82% 2 UNF Foundation [reimburse operating cost] 290,434 264,183 26,251 10% Miscellaneous revenue 6,146 3,611 2,535 70% Foreign exchange gain(loss) (4,332) (5,307) 974 -18% Total Revenue $ 7,754,296 6,927,600 826,696 12% Expenses Course expenses (printing, travel, postage, etc.) $ 1,280,560 1,278,934 1,626 -- Management services/bonus 213,000 282,000 -69,000 -24% Contract instructors 748,508 798,212 -49,704 -6% Royalties 31,688 41,443 -9,755 -24% Professional/Consultant fees 61,720 64,368 -2,648 -4% Audit fees 68,500 75,000 -6,500 -9% OPS Employees 84,514 57,268 27,246 48% Salaries/Benefits/Temp Employees 1,717,815 1,571,346 146,469 9% 3 Administrative expenses (printing, postage, office supplies, telephone, etc.) 329,987 317,539 12,448 4% Broadcasting (grant related) 604,394 262,978 341,416 130% 4 Investment manager/Bank fees 22,584 15,164 7,421 49% Contribution to UNF (equip/renovation/Library) 1,764,969 99,275 1,665,694 1678% 5 Faculty Development 50,000 25,000 25,000 100% 6 University Center Parking 20,325 30,899 -10,574 -34% Computer hardware/software 18,861 14,716 4,146 28% Grant equipment purchases (pass-thru) 977,772 777,065 200,706 26% 7 Insurance 55,393 28,565 26,829 94% Depreciation - vehicles 8,855 8,855 -- -- Amortization 66,000 66,000 -- -- Overhead assessment expense 323,894 301,954 21,940 7% Total Expenses $ 8,449,340 6,116,580 2,332,760 38% Fund Balance Revenue Over/(Under) Expenses $ (695,044) 811,020 -1,506,064 -186% Beginning Fund Balance 10,388,931 10,038,390 350,542 3% Total Fund Balance $ 9,693,888 10,849,410 -1,155,522 -11% 8 Notes: 1) Reflects a net increase of $428,463 or 7% from IPTM and PSI operational revenue over same period in the prior year. 2) Represents an increase in investment earnings of $344,893 or 70% over the same period in the prior year. 3) Reflects an increase in salary expenses due to filling vacant positions for IPTM and TSI/Foundation Accounting. 4) The increase is the result of the broadcast advertising campaign for the "You Drink You Drive You Lose" grant. 5) The increase reflects the amounts transferred to UNF for the TSI Library commitment and other equipment. 6) The increase reflects timing of the faculty development payment to Academic Affairs. 7) Reflects an increase in grant equipment purchased for distribution to State law enforcement departments. 8) The decrease in fund balance reflects the net of revenue received and operational expenses, which includes the TSI commitment payments.