2021 - Finance and Administration Committee - Agenda
THE UNIVERSITY OF TENNESSEE BOARD OF TRUSTEES
FINANCE AND ADMINISTRATION COMMITTEE 1:30 p.m. (EST)/12:30 p.m. (CST) Thursday, February 25, 2021 Virtual/Knoxville
AGENDA
I. Call to Order and Opening Remarks
II. Roll Call
III. Requests to Address the Board (if appropriate for this committee)
IV. Annual Financial Report FY 2020—Information...... Tab 1
V. CFO’s Report on Financial Performance—Information...... Tab 2
VI. Revised FY 2020-21 Operating Budget—Roll Call Vote/Action ...... Tab 3
VII. Annual Report on Finances of the Intercollegiate Athletics Programs—Information...... Tab 4
VIII. FY 2021-22 Tuition and Fees for UT Health Science Center—Roll Call Vote/Action ...... Tab 5
IX. Proposed Paid Parental Leave Policy —Roll Call Vote/Action...... Tab 6
X. Enterprise Resource Planning (ERP) Update —Information ...... Tab 7
XI. Consent Agenda —Roll Call Vote/Action...... Tab 8 Action Items A. Minutes of the Last Meeting...... Tab 8.1 B. Naming of JTV Center for Applied Business Analytics, UTK...... Tab 8.2 C. Renaming of Orange Hall in Honor of Rita Sanders Geier, UTK ...... Tab 8.3 D. Renaming of White Hall in Honor of Theotis Robinson, Jr., UTK...... Tab 8.4 E. Long-term Ground Lease Amendment for a Private Commercial-Retail Development of Campus, UTHSC ...... Tab 8.5 F. Transfer of Property at Research and Education Center – Blount Unit, UTIA...... Tab 8.6
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Information Items G. Disclosure of Additional Revenue/Institutionally-funded Capital Projects for FY 2021-22 and FY 2020-21 ...... Tab 8.7 H. Report on Endowment Investment Performance...... Tab 8.8 I. Composite Financial Index Report for FY 2019-20...... Tab 8.9 J. Fiscal Year 2020 Report of Year-End Fund Balances ...... Tab 8.10
XII. Other Business
[Note: Under the Bylaws of the Board, items not appearing on the agenda may be considered only upon an affirmative vote representing a majority of the total voting membership of the Committee. Other business necessary to come before the Committee at this meeting should be brought to the attention of the Committee Chair or Board Secretary before the meeting.]
XIII. Adjournment
2 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: Annual Financial Report FY 2020
Type: Information
Presenter: David L. Miller, Senior Vice President and Chief Financial Officer
The Annual Financial Report, FY 2020 (“Report”) provides a comprehensive entity-wide perspective of the University’s assets, liabilities, net position, revenues, expenses, changes in net position and cash flows. The financial statements in the Report have been prepared in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board. The management of the University of Tennessee is responsible for the integrity and objectivity of these financial statements.
The financial statements have been audited by the State of Tennessee, Comptroller of the Treasury, Division of State Audit. The auditor’s opinion is based on audit procedures described in their letter on page 3 of the Report, which includes understanding University systems, procedures, and internal controls and performing tests and other auditing procedures sufficient to provide reasonable assurance that the financial statements are not materially misleading nor do they contain material errors.
The full Report is available at: Annual Financial Report 2020
3 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
2020 FINANCIAL REPORT
The University of Tennessee Comparative Financial Statement Summaries Fiscal Years Ended June 30, 2020 and 2019
4 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
FY2020 FY 2019 Total Revenues $2.596B Total Revenues $2.522B
Investment Tuition Tuition Income $66.5M Auxiliaries and Fees Investment and Fees Auxiliaries $244.1M Fed Appr $17.2M $515.8M Income $532.9M $252.2M $117.3M Gifts $37.6M Fed Appr $15.9M Sales & Other Gifts $35.7M Grants and Services Grants and Other $392.9M $56.0M Sales & Contracts Contracts $375.0M Op Rev $20.1M Services $65.2M $761.8M $734.9M Op Rev $22.9M Non-Op Non-Op State Appr Rev State Appr $195.5M Rev $664.7M $644.2M $118.0M
Revenues Increased $74M • Non-operating revenue (capital funding, gifts) increased $77.5M • Grants and Contracts increased $26.9 M ($21M Cares Relief) • State appropriations & Student Fees increased $37.6M (3%) • Investment income decreased $50.8M • Sales & Services (Clinics, Farms, UTC & Martin Athletics) decreased by $9.2M • Auxiliaries decreased $8.1M.
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FY 2020 FY 2019 Total Expenses $2.391B Total Expenses $2.354B
Scholarships Operating Scholarships Benefits Expenses $84.4M Benefits Operating $67.0M $408.7M $533.9M $409.6M Expenses $563.3M
Other Depreciation Other Depreciation $280.1M $144.4M $242.2M $133.0M
Salaries Salaries $1.169B $1.139B Non-Op Exp Non-Op Exp $51.3M $42.2M
• Expenses increased by $37M (1.5%) • Operating Expenses decreased $29.4M (5.2%) • Salaries increased $30M (2.6%) • Scholarships increased $17.4M (26%) • Depreciation increased by $11.4M • Non -operating (interest on capital assets, disposal of assets) increased by $9.1M
6 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
FY2020 FY 2019 Total Assets $5.663B Total Assets $5.546B
Prepaids $2.8M Prepaids $5M Inventories $7.1M Inventories $7M Cash Investments Investments Cash $1.080B $1.352B Net $1.037B Net $1.292B Receivables Pension Receivables Pension $210.3M Asset & $199M Asset & Deferred Deferred Outflows Outflows Capital $145.0M Capital $170M Assets Assets $2.909B $2.793B
• Assets Increased by $117M • Capital assets increased by $116M. • Cash, investments & receivables collectively increased by $28M. • Deferred outflows decreased by $25M related to pensions.
7 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
FY 2020 FY 2019 Total Liabilities $2.190B Total Liabilities $2.278B
Accounts Accounts Payable & Due to Grantors $13.9M Net Pension Payable & Due to Grantors $20.4M Obligation & Accrued Unearned Net Pension Accrued Unearned Deferred Inflows Liabilities Revenue OPEB Obligation Liabilities Revenue $315.6M $180.2M $63.5M $155.5M & Deferred Inflows $176.0M $78.5M OPEB $261.8M $237.5M Annuities & Deposits $28.1M Other Annuities & Deposits Payables Other $28.9M $560.2M Due to Payables Bonds Component Units Bonds $673.4M Due to Payable $271.4M Payable Component Units $1.070B $1.088B $303.3M
Compensated Absences Compensated $91.3M Absences $83.3 M
• Liabilities Decreased by $88M • Post Retirement Benefits decreased $82M • Due to Component Units (Foundations) decreased by $31.9M • Bonds payable decreased by $18M • Net pensions and Deferred inflows increased by $53.8M • Compensated absences increased by $8M
8 2021 - Finance and Administration Committee - Annual Financial Report FY 2020 - Information 1
Fiscal Year 2020 - The Bottom Line
Revenue $2.596B Less Expenses $2.391B Increase in Net Position $ 205M
Assets increased $ 117M Liabilities decreased $ 88M Increase in Net Position $ 205M
9 2021 - Finance and Administration Committee - CFO's Report on Financial Performance - Information 2
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: CFO’s Report on Financial Performance
Type: Information
Presenter: David L. Miller, Senior Vice President and Chief Financial Officer
The attached materials are presented to contribute to the body of financial reports periodically provided to the Board of Trustees. This set of tables provides details summarizing the first two quarters of fiscal year 2020-21 compared to the same time last year. The table below summarizes Unrestricted E&G revenue and auxiliary revenue. The tables on the following pages provide revenue and expense data by institution and for the System as a whole.
UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Current Operating Funds (Unrestricted & Restricted)
FY 2020-21 % of same time % of current thru Dec. 31 last year year budget
REVENUES Unrestricted E&G Funds $ 1,143,957,864 100.5% 73.7% Unrestricted Auxiliary Funds 132,031,418 72.8% 63.3% Restricted Funds (E&G/Aux.) 355,179,028 106.0% 48.2% TOTAL $ 1,631,168,310 98.5% 65.3% EXPENDITURES Unrestricted E&G Funds $ 717,020,372 96.4% 43.5% Unrestricted Auxiliary Funds 121,553,895 79.5% 60.8% Restricted Funds (E&G/Aux.) 349,198,752 106.2% 47.4% TOTAL $ 1,187,773,018 96.9% 46.0%
50% of the fiscal year has been completed.
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UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Unrestricted Revenue Summary Year-to-Year Comparisons First Quarter Comparison FY 2019-20 FY 2020-21 Change Unrestricted E&G Knoxville $ 614,560,303 $ 630,427,339 $ 15,867,036 2.6% Health Science Center 184,474,123 182,538,096 (1,936,027) -1.0% Chattanooga 147,522,738 141,588,463 (5,934,275) -4.0% Agriculture 81,492,233 87,348,116 5,855,883 7.2% Martin 77,877,124 76,012,587 (1,864,537) -2.4% Public Service 14,884,069 14,417,947 (466,122) -3.1% System Administration* 17,901,648 11,625,316 (6,276,332) -35.1% TOTAL E&G $ 1,138,712,238 $ 1,143,957,864 $ 5,245,626 0.5% Auxiliaries Knoxville $ 141,918,077 $ 98,522,427 $ (43,395,650) -30.6% Chattanooga 28,624,497 24,053,957 (4,570,540) -16.0% Martin 9,803,686 8,307,841 (1,495,845) -15.3% Health Science Center 1,075,678 1,147,193 71,515 6.6% TOTAL AUXILIARY $ 181,421,938 $ 132,031,418 $ (49,390,520) -27.2% UNRESTRICTED $ 1,320,134,176 $ 1,275,989,282 $ (44,144,894) -3.3% Restricted Current Funds Knoxville $ 117,691,091 $ 124,651,860 $ 6,960,769 5.9% Health Science Center 132,496,520 143,622,711 11,126,191 8.4% Chattanooga 36,754,753 40,427,949 3,673,196 10.0% Agriculture 24,391,469 21,759,692 (2,631,777) -10.8% Martin 17,085,700 18,341,234 1,255,534 7.3% Public Service 2,839,875 2,874,199 34,324 1.2% System Administration 3,864,415 3,501,383 (363,032) -9.4% TOTAL RESTRICTED $ 335,123,823 $ 355,179,028 $ 20,055,205 6.0% GRAND TOTAL $ 1,655,257,999 $ 1,631,168,310 $ (24,089,689) -1.5%
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UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Current Operating Funds (Unrestricted & Restricted) Year-to-Year Comparisons First Quarter Comparison FY 2019-20 FY 2020-21 Change REVENUES Tuition & Fees $ 737,268,774 $ 748,887,734 1.6% Tuition/Fee Revenue per Student $14,293 $14,249 -0.3% State Appropriations 321,330,417 323,145,326 0.6% Grants & Contracts 318,334,157 335,938,386 5.5% Gifts & Endowments 34,596,979 36,955,698 6.8% Auxiliaries 181,421,938 132,031,418 -27.2% Other 62,305,735 54,209,748 -13.0% TOTAL $ 1,655,258,000 $ 1,631,168,310 -1.5% EXPENDITURES By Natural Classification Salaries & Benefits 713,143,171 710,906,733 -0.3% Operating & Equipment 352,126,385 306,033,592 -13.1% Scholarships/Fellowships 160,197,309 170,832,693 6.6% TOTAL $ 1,225,466,865 $ 1,187,773,018 -3.1% By Functional Area Instruction $ 330,401,696 $ 343,701,006 4.0% Research 157,619,518 154,444,924 -2.0% Public Service 73,341,806 70,982,581 -3.2% Academic Support 122,427,561 112,966,687 -7.7% Student Services 53,227,562 50,076,122 -5.9% Institutional Support 96,575,931 92,281,455 -4.4% Op/Maint Physical Plant 78,810,600 70,933,656 -10.0% Scholarships/Fellowships 160,197,309 170,832,693 6.6% Auxiliaries 152,864,881 121,553,895 -20.5% TOTAL $ 1,225,466,865 $ 1,187,773,018 -3.1% Tuition/Fee Revenue per Student $14,293 $14,249 -0.3% Scholarship/Fellowship Exp per Student $3,106 $3,250 4.7% Total Expenditure per Student $23,758 $22,599 -4.9%
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UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Unrestricted Educational & General (E&G) Funds Year-to-Year Comparisons First Quarter Comparison FY 2019-20 FY 2020-21 Change REVENUES Tuition & Fees $ 737,268,774 $ 748,887,734 1.6% State Appropriations 313,434,783 314,798,976 0.4% Grants & Contracts (F&A recoveries) 25,609,949 25,947,833 1.3% Sales & Services 32,534,980 26,556,243 -18.4% Other 29,863,752 27,767,078 -7.0% TOTAL $ 1,138,712,238 $ 1,143,957,864 0.5% EXPENDITURES By Natural Classification Salaries & Benefits 499,199,509 499,032,118 0.0% Operating & Equipment 175,389,382 144,951,436 -17.4% Scholarships/Fellowships 69,055,975 73,036,817 5.8% TOTAL $ 743,644,866 $ 717,020,371 -3.6% By Functional Area Instruction $ 246,693,301 $ 243,066,477 -1.5% Research 64,944,645 66,431,333 2.3% Public Service 37,932,421 35,972,418 -5.2% Academic Support 98,349,989 89,206,469 -9.3% Student Services 52,350,532 48,320,806 -7.7% Institutional Support 95,691,954 90,338,723 -5.6% Op/Maint Physical Plant 78,626,049 70,647,330 -10.1% Scholarships/Fellowships 69,055,975 73,036,817 5.8% TOTAL $ 743,644,866 $ 717,020,372 -3.6% Tuition/Fee Revenue per Student $14,293 $14,249 -0.3% Scholarship/Fellowship Exp per Student $1,339 $1,390 3.8% Total Expenditure per Student $14,417 $13,642 -5.4%
13 2021 - Finance and Administration Committee - CFO's Report on Financial Performance - Information 2
UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Unrestricted Educational & General (E&G) Funds Year-to-Year Comparisons First Quarter Comparison FY 2019-20 FY 2020-21 Change Knoxville Revenues $ 614,560,303 $ 630,427,339 $ 15,867,036 2.6% Expenses 342,381,134 333,748,476 (8,632,658) -2.5% Net $ 272,179,169 $ 296,678,863 $ 24,499,694 9.0% Health Science Center Revenues $ 184,474,123 $ 182,538,096 $ (1,936,027) -1.0% Expenses 147,860,222 142,711,387 (5,148,835) -3.5% Net $ 36,613,901 $ 39,826,709 $ 3,212,808 8.8% Chattanooga Revenues $ 147,522,738 $ 141,588,463 $ (5,934,275) -4.0% Expenses 95,253,218 89,934,905 (5,318,313) -5.6% Net $ 52,269,520 $ 51,653,558 $ (615,962) -1.2% Agriculture Revenues $ 81,492,233 $ 87,348,116 $ 5,855,883 7.2% Expenses 67,742,646 65,621,223 (2,121,423) -3.1% Net $ 13,749,587 $ 21,726,893 $ 7,977,306 58.0% Martin Revenues $ 77,877,124 $ 76,012,587 $ (1,864,537) -2.4% Expenses 50,026,824 46,815,877 (3,210,947) -6.4% Net $ 27,850,300 $ 29,196,710 $ 1,346,410 4.8% Public Service Revenues $ 14,884,069 $ 14,417,947 $ (466,122) -3.1% Expenses 11,230,955 10,675,742 (555,213) -4.9% Net $ 3,653,114 $ 3,742,205 $ 89,091 2.4% System Administration Revenues $ 17,901,648 $ 11,625,316 $ (6,276,332) -35.1% Expenses 29,149,867 27,512,762 (1,637,105) -5.6% Net $ (11,248,219) $ (15,887,446) $ (4,639,227) 41.2% TOTAL UT SYSTEM Revenues $ 1,138,712,238 $ 1,143,957,864 $ 5,245,626 0.5% Expenses 743,644,866 717,020,372 (26,624,494) -3.6% Net $ 395,067,372 $ 426,937,492 $ 31,870,120 8.1%
14 2021 - Finance and Administration Committee - CFO's Report on Financial Performance - Information 2 UT System Quarterly Financial Summary Second Quarter of FY 2020-21 (July 1 through December 31) Auxiliary Enterprises: UTK, UTC, UTM UT Knoxville* UT Chattanooga UT Martin FY 2019-20 FY 2020-21 Change FY 2019-20 FY 2020-21 Change FY 2019-20 FY 2020-21 Change HOUSING Revenues $ 55,763,792 $ 44,422,287 $ (11,341,505) -20% $ 24,677,837 $ 21,362,625 $ (3,315,212) -13% $ 8,149,312 $ 6,987,831 $ (1,161,481) -14% Expenses 28,946,089 24,147,555 (4,798,534) -17% 8,840,123 8,742,897 (97,226) -1% 4,854,928 4,286,898 (568,030) -12% NET $ 26,817,703 $ 20,274,732 $ (6,542,971) $ 15,837,714 $ 12,619,728 $ (3,217,986) $ 3,294,384 $ 2,700,933 $ (593,451) DINING Revenues $ 8,165,342 $ 2,902,806 $ (5,262,536) -64% $ 491,474 $ 231,244 $ (260,230) -53% $ 680,657 $ 525,168 $ (155,489) -23% Expenses 4,314,303 5,042,682 728,379 17% 256,470 492,864 236,394 92% 58,981 110,957 51,976 88% NET $ 3,851,039 $ (2,139,876) $ (5,990,915) $ 235,004 $ (261,620) $ (496,624) $ 621,676 $ 414,211 $ (207,465) BOOKSTORES Revenues $ 17,062,788 $ 13,626,774 $ (3,436,014) -20% $ 397,315 $ 197,041 $ (200,274) -50% $ 311,417 $ 277,588 $ (33,829) -11% Expenses 14,304,062 10,239,285 (4,064,777) -28% 25,224 14,715 (10,509) -42% 147,498 178,560 31,062 21% NET $ 2,758,726 $ 3,387,489 $ 628,763 $ 372,091 $ 182,326 $ (189,765) $ 163,919 $ 99,028 $ (64,891) PARKING Revenues $ 5,744,226 $ 4,361,150 $ (1,383,076) -24% $ 2,727,395 $ 2,213,728 $ (513,667) -19% $ 450,312 $ 303,542 $ (146,770) -33% Expenses 5,755,753 5,304,759 (450,994) -8% 1,883,830 1,622,989 (260,841) -14% 229,374 140,402 (88,972) -39% NET $ (11,527) $ (943,609) $ (932,082) $ 843,565 $ 590,739 $ (252,826) $ 220,938 $ 163,140 $ (57,798) ATHLETICS Revenues $ 48,786,551 $ 30,608,478 $ (18,178,073) -37% Expenses 77,812,945 55,333,240 (22,479,705) -29% NET $ (29,026,394) $ (24,724,762) $ 4,301,632 OTHER Revenues $ 6,395,378 $ 2,600,931 $ (3,794,447) -59% $ 330,476 $ 49,319 $ (281,157) -85% $ 211,988 $ 213,712 $ 1,724 1% Expenses 3,948,755 2,566,277 (1,382,478) -35% 490,961 265,778 (225,183) -46% 240,961 249,213 8,252 3% NET $ 2,446,623 $ 34,654 $ (2,411,969) $ (160,485) $ (216,459) $ (55,974) $ (28,973) $ (35,501) $ (6,528) TOTALS Revenues $ 141,918,077 $ 98,522,426 $ (43,395,651) -31% $ 28,624,497 $ 24,053,957 $ (4,570,540) -16% $ 9,803,686 $ 8,307,841 $ (1,495,845) -15% Expenses 135,081,907 102,633,798 (32,448,109) -24% 11,496,608 11,139,243 (357,365) -3% 5,531,742 4,966,030 (565,712) -10% NET $ 6,836,170 $ (4,111,372) $ (10,947,542) $ 17,127,889 $ 12,914,714 $ (4,213,175) $ 4,271,944 $ 3,341,811 $ (930,133)
*Includes UTSI
15 2021 - Finance and Administration Committee - CFO's Report on Financial Performance - Information 2
COVID Fiscal Impact 2020 Spring, Summer, and Fall Terms Estimates as of January 1, 2021 UTC UTK UTM HSC TOTAL Estimated Fiscal Impact Refunds & Revenue Reductions $ 15,668,000 $ 95,335,000 $ 8,574,000 $ 2,369,000 $ 121,946,000 COVID-Response Expenses 2,501,000 20,246,000 1,721,000 4,006,000 28,474,000 Total Impact $ 18,169,000 $ 115,581,000 $ 10,295,000 $ 6,375,000 $ 150,420,000
State & Federal Grant Funding CARES Act grants* $ 5,223,908 $ 9,629,157 $ 2,807,094 $ 499,039 $ 18,159,197 State Coronavirus Relief Fund (CRF) grants 688,525 1,154,725 529,075 14,250 2,386,575 Total Available Grant Funding $ 5,912,433 $ 10,783,882 $ 3,336,169 $ 513,289 $ 20,545,772
Net Fiscal Impact $ 12,256,568 $ 104,797,119 $ 6,958,831 $ 5,861,711 $ 129,874,228
*CARES Act grants: Section 1 funding available for institutional aid and from Section 1 grants and Section 2 grants to Strengthening Institutions Program (SIP) campuses (UTC & UTM). Does not inlcude $17.44 million in CARES Act funding that was distributed directly to students. Does not include recently awarded federal relief funding.
The disruption to normal operations and short-term controls has reduced spending in some operating categories such as travel, conferences, campus events, contractual/personal services, library acquisitions, utilities, and maintenance/repair. Expenses in these categories from March 1 to December 31 were $81 million less than during the same period a year ago.
FY20 set asides for future renewal and replacement expenditures for auxiliary facilities and eqiupment were $10 million less than expected.
16 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
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AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: Revised FY 2020-21 Operating Budget
Type: Action
Presenter: David L. Miller, Senior Vice President and Chief Financial Officer
The University develops a revised operating budget proposal each fiscal year to adjust for changes that occur after the original budget is adopted in June. The primary revisions made each year include updating beginning net asset balances to reflect actual rather than projected beginning balances; state appropriations adjustments made by the state Department of Finance and Administration; and mid-year adjustments to enrollment projections, operating plans, organizational structure, revenue projections, and fixed costs.
The revised Unrestricted Educational and General (E&G) Operating Budget is in the amount of $1,551,400,349, an increase of 1.1% over the original budget, and the revised Unrestricted Auxiliary Operating Budget amount of $208,552,002 is a 20.6% decrease of $ 53,974,725 from the original budget.
Unrestricted Unrestricted Unit E&G Auxiliary Restricted Total Chattanooga 183,414,534 21,063,659 66,549,056 271,027,249 Knoxville 765,527,083 174,444,872 264,408,050 1,204,380,005 Martin 102,286,081 10,124,296 36,095,783 148,506,160 Health Science Center 289,048,760 2,919,175 311,941,234 603,909,169 Institute of Agriculture 154,326,412 50,670,994 204,997,406 Institute for Public Service 26,378,832 5,931,012 32,309,844 System Administration 30,418,647 1,850,000 32,268,647 Total 1,551,400,349 208,552,002 737,446,129 2,497,398,480
Detailed information on the revised operating budget follows this summary.
Committee Action
The Committee Chair will call for a motion to recommend adoption by the Board of Trustees of the attached Resolution.
17 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
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The University of Tennessee Board of Trustees
Resolution ___-2021* Resolution to Approve the FY 2020-21 Revised Operating Budget
WHEREAS, by state law, the Board of Trustees must approve an annual operating budget for the University; and
WHEREAS, the Board approved the FY 2020-21 operating budget on June 26, 2020; and
WHEREAS, the operating budget must be revised during the year to update revenue and expenditure projections for the remainder of the fiscal year, taking into consideration final fall enrollments (which are estimated when the original budget is prepared), the impact of the prior year’s activities carried forward into the current year, and adjustments in state appropriations occurring since the budget was approved on June 26, 2020; and
WHEREAS, the FY 2020-21 Revised Operating Budget includes adjustments allocating revisions to budgeted revenues and carry forward of unexpended non- recurring funds from FY 2019-20; and
WHEREAS, further adjustments may be required if material changes in revenues or expenditures arise during the remainder of FY 2020-21; and
WHEREAS, the FY 2020-21 Revised Budgets for Unrestricted Education and General (E&G) and Auxiliary Enterprises are balanced, and within available resources and comply with all applicable policies and guidelines;
NOW, THEREFORE, BE IT RESOLVED: 1. The FY 2020-21 Revised Unrestricted, Educational and General Operating Budget in the amount of $1,551,400,349 and the Revised Unrestricted Auxiliary Operating Budget in the amount of $208,552,002 are hereby approved. A copy of the Revised Budget Document for FY 2020-21 is attached hereto.
2. If material changes in revenues or expenditures arise during the remainder of FY 2020- 21, the University administration is hereby authorized to modify budgets accordingly so expenditures will not exceed available resources and sufficient net assets will be available as of June 30, 2021 to meet outstanding commitments, satisfy liquidity requirements, fund activities deferred to the following fiscal year, and provide a reasonable reserve for contingencies for the beginning of FY 2021-22. (*) Number will be inserted after adoption.
18 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Revised Budget Document FY 2020-21
19 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 THE UNIVERSITY of TENNESSEE
Chattanooga
Knoxville Knoxville Space Institute
Martin
Health Science Center
Institute of Agriculture AgResearch Extension College of Veterinary Medicine
Institute for Public Service Institute for Public Service Municipal Technical Advisory Service County Technical Assistance Service Tennessee Language Center
System Administration
20 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3 THE UNIVERSITY OF TENNESSEE
Contents
MESSAGE FROM THE CFO A-2
OVERVIEW A-3
UNRESTRICTED E&G REVENUES A-4
UNRESTRICTED E&G EXPENDITURES A-5
AUXILIARY ENTERPRISES A-7
RESTRICTED FUNDS A-8
UNRESTRICTED NET ASSETS A-9
SUPPORTING BUDGET SCHEDULES B-1
A-1
21 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Message from the CFO
The FY 2020-21 revised operating budget parking, and UTK athletics. Auxiliary reflects operating plans and financial revenue budgets are reduced by $54 million projections as of October 31, 2020. The (21%). This is offset by temporary spending University develops a revised budget each reductions and drawing upon reserves. fiscal year to adjust for the following changes that occur after the original budget is adopted The financial outlook for core educational in June: and general (E&G) operations is stable and, 1. The university’s original budget is in some cases, better than expected. developed before the end of the previous • UT experienced a 1.9% uptick in fiscal year and uses budgeted net assets as enrollments, primarily at UTK. Tuition the starting point. The revised budget uses and fee revenue budgets were adjusted up actual net assets as the starting point. In by $16.8 million. Most of these funds most years, this change in net assets is offset were allocated to scholarships and student by an increase to non-recurring expenditure services. budgets. • The other major funding source for E&G 2. State appropriations are adjusted in operations, state appropriations, has September, requiring minor adjustments in remained steady. Better than expected most years. sales tax revenues helped the state avoid 3. Other adjustments may be needed if there mid-year funding reductions. are material changes to operating plans, • Some expenditures dropped as a result of organizational structure, revenue the pandemic (travel, seminars, special projections, or fixed costs. events), helping offset costs in other areas. • Federal and state COVID-relief grants are In most years, there are few if any material helping to offset some of the costs of UT’s changes in the university’s revised budget. COVID response and wider deployment This year is an exception. The operating of online instruction, as well as providing budget adopted on June 25, 2020 was direct financial assistance to many developed cautiously. We assumed a return to students. relatively normal campus operations, but each campus and institute developed contingency Revenue and expenditure data for each plans to be prepared in case the pandemic operating unit is provided in this budget continued. document. Also included is information on athletics and auxiliary budgets. A separate As the fall semester approached, chancellors publication containing detailed supporting and staff adjusted instruction and operations in schedules is available in electronic format. response to ongoing health concerns. Hundreds of courses continue to be delivered Respectfully, online, many faculty and staff are working from home, and attendance at campus and athletic events is carefully controlled.
The most significant fiscal impact has been felt David L. Miller by the university’s self-funded auxiliary Chief Financial Officer enterprises: housing, dining, bookstores,
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22 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Overview
The University of Tennessee FY 2020-21 revised budget revenues total $2.50 billion, down 1.2% compared to the original budget approved in June 2020. The adjustments ensure that the university’s revised expenditure and transfer budgets for FY 2020-21 remain within available resources.
Budgeted revenues from educational and general (E&G) funds, both unrestricted and restricted, were increased by $23.8 million, reflecting better than expected performance in enrollments and federal and state COVID-relief grants. These increases were offset by a $54.0 million reduction in auxiliary revenue budgets due to the continued impact of COVID on revenues generated by housing, dining contracts, parking services, and athletics. Mid-year budget revisions of this magnitude are rare. Additional adjustments may be needed before the end of the fiscal year in order to respond to the ongoing pandemic. Operating Revenue FY 2020-21 FY 2020-21 Fund Group Original Revised Change Unrestricted E&G $ 1,534,856,942 $ 1,551,400,349 $ 16,543,407 1.1 % Unrestricted Auxiliaries 262,526,727 208,552,002 (53,974,725) (20.6) % Subtotal: Unrestricted $ 1,797,383,669 $ 1,759,952,351 $ (37,431,318) (2.1) % Restricted Funds 730,199,754 737,446,129 7,246,375 1.0 % Total Operating Revenues $ 2,527,583,423 $ 2,497,398,480 $ (30,184,943) (1.2) %
Unrestricted education and general funds (unrestricted E&G) support the core operations of the university: instruction, research, public service, academic support, student services, institutional support, facilities operations and maintenance, and scholarships and fellowships. They are funded primarily through tuition and student fees, state appropriations, and other sources (including grants and contracts, federal and local appropriations, sales and services, and investment income).
Auxiliaries are self-supporting enterprises which furnish services to students, faculty, and staff such as housing, bookstores, food services and UTK a thletics. They complement the core operations of each campus and are a vital component in student life and campus culture.
Restricted funds must be used in accordance with purposes established by an external party; primarily grants, contracts, gifts and endowments. These are the major revenue sources for research, scholarships, and fellowships.
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23 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Unrestricted E&G Revenues
Unrestricted E&G Revenue FY 2020-21 FY 2020-21 Revenue Source Original Revised Change Tuition & Fees $737,846,711 $754,681,310 $ 16,834,599 2.3 % State Appropriations 630,641,552 631,093,152 451,600 0.1 % Other Revenues 166,368,679 165,625,887 (742,792) (0.4) % Total $ 1,534,856,942 $ 1,551,400,349 $ 16,543,407 1.1 %
FY 2020-21 revised budget unrestricted E&G revenues increased by $16.5 million due to a 2.3% increase in budgeted tuition and fee revenues. There were no significant changes to expected revenues from state appropriations and other unrestricted E&G funding sources.
Tuition and Fee Revenues FY 2020-21 FY 2020-21 Fee Type Original Revised Change Maintenance Fees $ 520,698,938 $ 530,550,638 $ 9,851,700 1.9 % Non-Resident Tuition 77,171,946 86,736,466 9,564,520 12.4 % Program and Service Fees 77,620,729 77,620,729 - - Other Student Fees 56,347,845 54,021,148 (2,326,697) (4.1) % Non-Credit Program Fees 6,007,253 5,752,329 (254,924) (4.2) % Total Tuition $ 737,846,711 $ 754,681,310 $ 16,834,599 2.3 %
The budget adopted in June reflected a cautious posture with respect to fall enrollments. Fortunately, UT did not suffer the declines seen at many other universities. Knoxville and Chattanooga experienced gains while enrollment dipped at Martin and the Health Science Center. System wide head count enrollment increased by 1.9%, which is reflected in increased maintenance fee revenue budgets. (Maintenance fees are commonly referred to as in-state tuition.)
Non-resident tuition is a differential paid by out-of-state students in addition to the maintenance fee. The 12.4% increase includes two adjustments. Fall 2020 out-of-state enrollments exceeded the expectations from last June. More significant was a structural adjustment to recognize strong out-of-state growth over the last several years (up 41% since fall 2016) that had not yet been incorporated into previous recurring revenue budgets.
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24 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Unrestricted E&G Revenues (continued)
Student programs and services fees (SPSF) are mandatory fees paid by all students for student activities, health services, debt service, capital improvements, student counseling, and similar programs. Actual year-to-date SPSF revenues are tracking close to the original budget. Other student fees include lab fees, course fees, and differential tuition. Most of the 4.1% drop is a result of UTC’s decision to not assess its online access fee to many students who would normally pay it during 2020-21. This will be offset by reserves. Non-credit program fee revenues are generated by personal and professional development courses provided to the public. Many of these courses have been canceled due to the pandemic.
Unrestricted E&G Expenditures
Recurring Unrestricted E&G Expenditure Budgets by Function
FY 2020-21 FY 2020-21 Functional Area Original Revised Change Instruction $ 566,624,958 $ 567,397,609 $ 772,651 0.1 % Research 130,090,400 131,598,388 1,507,988 1.2 % Public Service 83,123,609 83,569,501 445,892 0.5 % Academic Support 180,553,872 181,495,594 941,722 0.5 % Student Services 100,800,163 104,318,982 3,518,819 3.5 % Institutional Support 172,380,198 174,170,068 1,789,870 1.0 % Operation/Maint. of Plant 157,000,671 157,676,700 676,029 0.4 % Scholarships and Fellowships 133,047,193 142,952,452 9,905,259 7.4 % Total E&G Expenditures $1,523,621,064 $ 1,543,179,294 $ 19,558,230 1.3 % Transfers 8,049,695 8,681,592 631,897 7.8 % Expenditures & Transfers $1,531,670,759 $ 1,551,860,886 $ 20,190,127 1.3 %
Mid-year revisions to recurring expenditure budgets are typically minor, but there are some material adjustments this year. Improved expectations for tuition and fee revenues were offset by fairly large increases in two functional area budgets. Most of the revenue increase was allocated to student financial aid (scholarships & fellowships), followed by a relatively large mid-year increase to student services budgets. Both adjustments are consistent with stronger than expected enrollments.
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25 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Unrestricted E&G Expenditures (continued)
Unrestricted E&G Expenditures by Function Recurring and Non-Recurring Budgets Combined FY 2020-21 FY 2020-21 Change Change Functional Area Original Revised Amount % Instruction $ 570,308,488 $ 594,259,973 $ 23,951,485 4.2 % Research 131,117,132 176,348,978 45,231,846 34.5 % Public Service 83,717,359 87,327,025 3,609,666 4.3 % Academic Support 180,940,067 194,097,734 13,157,667 7.3 % Student Services 100,825,163 107,966,320 7,141,157 7.1 % Institutional Support 176,036,643 181,359,871 5,323,228 3.0 % Operation/Maint. of Plant 155,367,360 156,497,015 1,129,655 0.7 % Scholarships and Fellowships 138,694,663 148,858,230 10,163,567 7.3 % Total E&G Expenditures $1,537,006,875 $1,646,715,146 $ 109,708,271 7.1 % Transfers (3,698,766) (96,696,845) (92,998,079) (2,414)% Expenditures & Transfers $1,533,308,109 $1,550,018,301 $ 16,710,192 1.1 %
Total budgeted expenditures (recurring and non-recurring) increased $109.7 million (7.1%). This includes the $19.6 million increase in recurring expenditure budgets discussed on the previous page plus a $90.1 million increase in non-recurring expenditure budgets. Most of the increase is offset by budgeted transfers from non-recurring renewal and replacement fund balances. The large increase in research is typical since a good portion of these funds come from non- recurring facilities and administration recoveries generated in previous years by research grants and contracts.
The non-recurring budget increases were allocated through campus and institute budgeting procedures to non-recurring projects and programs such as facility maintenance, equipment replacements, faculty start-up packages, bridge funding for research operations, lab upgrades, faculty incentives, campus improvements, energy conservation projects, and information technology infrastructure. Unused non-recurring funds will be carried forward to FY 2021-22 for use on similar non-recurring projects and improvements in the future.
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26 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Auxiliary Enterprises
Auxiliary enterprises complement core campus operations by furnishing services to students, faculty, and staff. Each auxiliary enterprise is self-funded through sales, fees, commissions, and private gifts. These stand-alone operations include housing, food services, bookstores, and parking services. It also includes UT Knoxville athletics since it is a self-supporting operation. (The athletic programs at Chattanooga and Martin are included in unrestricted E&G funds.)
The original revenue budgets approved last June were based on assumptions of steady enrollments and normal campus operations. While enrollments exceeded expectations, continuing concerns over the pandemic significantly curtailed normal auxiliary operations. Most faculty, staff, and students shifted to working remotely much of the time. Some have been working remotely all of the time. With far fewer people on campus, the demand for housing, dining, parking, and supplies dropped significantly. UTK athletics made a large adjustment to revenue budgets once it became clear that football and basketball ticket revenue would be far below normal levels.
The revenue declines are being managed through expense reductions and reserves. Some spending reductions were the result of intentional cost controls and deferred spending, some were the result of COVID-related drops in expenses such as travel and special events.
FYAuxiliar 2020-21y RevenuesFY 2020-21 Revenues by Enterprise Original Revised Change Housing $ 79,421,689 $ 73,017,334 $ (6,404,355) (8) % Bookstores 23,210,352 20,039,346 (3,171,006) (14) % Parking 15,597,149 13,861,896 (1,735,253) (11) % Food Services 13,027,003 10,756,278 (2,270,725) (17) % Other 3,007,749 1,557,749 (1,450,000) (48) % Subtotal $ 134,263,942 $ 119,232,603 $ (15,031,339) (11) % UTK Athletics 128,262,785 89,319,399 (38,943,386) (30) % Total Auxiliary Revenues $ 262,526,727 $ 208,552,002 $ (53,974,725) (21) %
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27 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Restricted Funds
Many of the budget tables and schedules in this document include information on restricted fund budgets. This information is not part of the proposed Board resolution. It is presented for information purposes to provide a complete picture of funds available for current operations in 2020-21.
Restricted funds must be used for purposes established by an external party and in accordance with the contractual terms and conditions negotiated with the sponsor of each grant and contract and the administrative provisions set by donors for each gift fund and endowment. They are the largest revenue sources for research and financial aid and play an important role in funding the university’s public service initiatives.
Externally funded projects in research, public service, and instruction are vital components of the university’s core mission. Funding from the federal government, State of Tennessee, gifts, and endowments provide scholarships and fellowships that significantly improve student access and affordability.
Restricted Fund Revenues and Expenses FY 2020-21 FY 2020-21 Sources & Uses Original Revised Change Grants & Contracts $ 633,874,650 $ 642,722,830 $ 8,848,180 1.4% Gifts & Endowments 79,787,754 78,160,019 (1,627,770) -2.0% Other 16,537,315 16,563,208 25,965 0.2% Restricted Revenues $ 730,199,754 $ 737,446,129 $ 7,246,375 1.0% Instruction $ 216,223,572 $ 217,824,695 $ 1,601,123 0.7% Research 200,551,683 196,344,823 (4,206,860) -2.1% Scholarships & Fellowships 185,354,605 193,963,087 8,608,482 4.6% Public Service 73,361,135 73,502,805 141,670 0.2% Academic Support 49,266,125 47,064,254 (2,201,871) -4.5% Other Expenses 5,396,449 8,746,465 3,350,016 62% Restricted Expenses $ 730,153,569 $ 737,446,129 $ 7,292,560 1.0%
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28 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
Unrestricted Net Assets
The university maintains sufficient levels of unrestricted net assets to comply with state regulations on working capital, properly account for revolving funds, and meet contractual obligations and operational plans for the next year. The revised budget results in fund balances of $133.5 million as of June 30, including $114.6 million for E&G operations and $19.0 million for auxiliaries.
Unrestricted Current Fund Net Assets Budgeted for June 30, 2021 Fund Balances E&G Auxiliary Total Working Capital $ 20,308,129 $ 7,974,068 $ 28,282,205 Revolving Funds 17,194,658 1,714,725 18,909,383 Encumbrances 3,153,752 3,153,752 Reappropriations 13,104,034 13,104,034 Unallocated Reserve* 60,802,652 9,275,361 70,078,013 Total Net Assets $ 114,563,225 $ 18,964,154 $ 133,527,379 *Unallocated Reserve as % of Total Expenses & Transfers 3.92% 4.45% 3.99%
Unallocated reserves are contingency funds used to respond to fluctuations in revenues and expenditures. The unallocated reserve for E&G operations is limited to 2% to 5% of total expenditures and transfers; the auxiliary target range is 3% to 5% of expenditures and transfers.
Working capital reserves provide sufficient liquidity to fund accounts receivable, inventories, and petty cash. These are required by state regulations and are non-expendable during the fiscal year.
Encumbrances are carried over for commitments for purchases of goods and services that were not received before the close of the fiscal year. They are fully expended during the fiscal year.
Revolving funds include fund balances tied to revenue-generating units (e.g., service centers, motor pools, conference centers, medical clinics) and university wide cost-distribution models (e.g., unemployment compensation, workers compensation liabilities, claims liabilities, etc.).
Reappropriations are funds carried forward for specific programs and initiatives. The most common example is a project that was planned for the previous fiscal year but delayed until the next fiscal year. Most reappropriations are fully expended during the current year.
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29 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
FY2020-21 REVISED BUDGET 3
FY 2020-21 Revised Budget Schedule Description Page
Unrestricted and Restricted Current Funds – Graphical Presentation B-2
Unrestricted E&G Current Funds – Graphical Presentation B-3 Unrestricted and Restricted Current Funds, Revenues, Expenditures, and Transfers by B-4 Unit Unrestricted Current Funds, Revenues, Expenditures, and Transfers by Unit B-5
Unrestricted Current Funds – 5 Year History B-6
Unrestricted and Restricted Current Funds – 5 Year History B-7
Unrestricted and Restricted Current Funds – Budget Summary B-8
Unrestricted Current Funds - Natural Classifications by Unit B-9
Net Asset by Unit – Unrestricted E&G and Auxiliaries Funds Combined B-10
Net Asset by Unit – Unrestricted Educational and General (E&G) Funds B-11
Net Assets by Unit – Unrestricted Auxiliary Funds B-12
State Appropriations Summary B-13
State Appropriations Five Year History B-14
Auxiliary Enterprises by Category B-15
Athletics Budget Summary (Knoxville, Chattanooga, Martin) B-16
Natural Classifications – Budget Summary B-17
Natural Classifications – Budget Summary (Recurring Budget Type Only) B-18
Revised Budget Summaries – Unrestricted Current Funds
Total University of Tennessee System (Recurring Budget Type Only) B-19
Total University of Tennessee System B-20 Chattanooga B-21
Knoxville (Includes UT Space Institute) B-22
Martin B-23
Health Science Center B-24
Institute of Agriculture B-25
Institute for Public Service B-26
System Administration B-27
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30 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
The University of Tennessee 3 FY 2020-21 Revised Budget Unrestricted & Restricted Current Funds
Unrestricted & Restricted State Revenues Appropriatio Revenues $2.5 billion ($millions) Tuition & ns Fees $647.4 Chattanooga $271.0 $754.7 26% Knoxville 1,204.4 30%
Martin 148.5
Health Science Center 603.9
Institute of Agriculture 205.0 Sales & Services Inst. for Public Service 32.3 $59.5 System Administration 32.7 2%
TOTAL $2,497.4 Grants & Contracts Auxiliaries Other $690.2 $208.8 $136.8 28% Fall 2020 Headcount 8% Enrollment 6%
Knoxville 30,095
Chattanooga 11,695 Auxiliaries Expenditures $2.6 billion Martin 7,117 $200.0 Oper./Maint. Health Science Center 3,188 8% Instruction $156.8 $812.1 Vet Med 381 6% 32% Space Institute 83 Academic Support TOTAL 52,559 $241.2 10%
FTE Positions Student (Unrestricted & Restricted) Services October 31, 2020 $111.1 4% Faculty 4,393 Research Administrative 989 Scholarships $372.7 $342.8 Public Professional 3,372 Institutional 15% 12% Service Support Cler/Tech/Maint 5,491 $160.8 $186.4 6% TOTAL 14,246 7%
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31 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
The University of Tennessee 3 FY 2020-21 Revised Budget Unrestricted Current Funds
Revenues Current Fund Revenues $1.76 billion ($millions) State Chattanooga $204.5 Appropriations Knoxville 940.0 Tuition & $631.1 Fees Martin 112.4 36% $754.7 Health Science Center 292.0 43%
Institute of Agriculture 152.8
Inst. for Public Service 26.4
System Administration 30.4
TOTAL $1,760 Grants & Sales & Contracts Services Other $47.5 $59.5 $58.7 3% Auxiliaries Fall 2020 FTE Enrollment 3% 3% $208.6 Knoxville 27,792 12%
Chattanooga 10,538
Martin 5,599 Expenditures Auxiliaries $1.85 billion Health Science Center 3,371 $199.8 11% Instruction Vet Med 545 Oper./Maint. $594.3 Space Institute 40 $156.4 32% 8% TOTAL 47,885
Academic Support FTE Positions $194.1 (Unrestricted) 11% October 31, 2020 Student Faculty 3,548 Services Research $108.0 Administrative 930 6% $176.3 Public 10% Professional 2,604 Scholarships Institutional Service Cler/Tech/Maint 4,661 $148.9 Support $87.3 8% $181.4 5% TOTAL 11,742 10%
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32 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Summary by Unit Unrestricted and Restricted Current Funds, Revenues, Expenditures, and Transfers
Health Science Institute of Institute for System Total System Chattanooga Knoxville Martin Center Agriculture Public Service Administration EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 754,681,310 $ 118,790,610 $ 472,611,737 $ 62,206,062 $ 88,472,873 $ 12,600,028 State Appropriations 647,372,932 61,126,506 271,374,697 35,675,180 166,293,758 92,945,287 $ 13,815,487 $ 6,142,017 Grants & Contracts 690,221,874 58,242,427 241,350,000 31,563,400 300,896,662 50,644,326 6,275,059 1,250,000 Sales & Service 59,467,883 2,973,919 5,329,970 3,672,746 19,404,781 28,086,467 Other Sources 136,842,479 8,830,128 39,008,729 5,264,476 25,921,920 20,721,298 12,219,298 24,876,630 Total Revenues $ 2,288,586,478 $ 249,963,590 $ 1,029,675,133 $ 138,381,864 $ 600,989,994 $ 204,997,406 $ 32,309,844 $ 32,268,647
Expenditures and Transfers Instruction $ 812,084,668 $ 86,723,401 $ 293,265,064 $ 47,865,352 $ 344,509,703 $ 39,710,416 $ 2,732 $ 8,000 Research 372,693,801 10,442,011 213,517,052 326,351 79,141,115 68,585,272 682,000 Public Service 160,829,830 4,168,181 29,785,273 2,487,636 18,261,983 76,550,072 28,976,685 600,000 Academic Support 241,161,988 21,050,995 99,449,155 11,564,072 99,092,349 9,741,983 263,434 Student Services 111,117,117 28,686,014 59,885,186 14,932,381 7,613,536 Institutional Support 186,363,194 19,437,745 62,392,729 8,360,697 32,602,062 2,887,631 760,654 59,921,676 Op/Maint Physical Plant 156,829,360 19,231,039 86,622,429 11,038,851 34,098,324 3,838,717 2,000,000 Scholarships & Fellowships 342,821,317 66,405,083 219,893,479 44,231,017 11,617,357 627,543 6,838 40,000 Subtotal Expenditures $ 2,383,901,275 $ 256,144,469 $ 1,064,810,367 $ 140,806,357 $ 626,936,429 $ 201,941,634 $ 30,010,343 $ 63,251,676 Mandatory Transfers 10,443,574 3,438,000 742,769 553,053 5,579,752 130,000 Non Mandatory Transfers (107,140,419) (9,618,879) (35,878,003) (2,977,546) (31,476,187) 1,488,203 2,220,345 (30,898,352) Total Expenditures & Transfers $ 2,287,204,430 $ 249,963,590 $ 1,029,675,133 $ 138,381,864 $ 601,039,994 $ 203,429,837 $ 32,230,688 $ 32,483,324 Fund Balance Addition/(Reduction) $ 1,382,048 $ (50,000) $ 1,567,569 $ 79,156 $ (214,677)
AUXILIARIES Revenues $ 208,812,002 $ 21,063,659 $ 174,704,872 $ 10,124,296 $ 2,919,175 Expenditures and Transfers Expenditures $ 200,027,350 $ 14,670,128 $ 176,022,112 $ 6,786,435 $ 2,548,675 Mandatory Transfers 47,548,245 5,753,253 38,752,322 2,672,170 370,500 Non-Mandatory Transfers (38,813,593) 640,278 (40,069,562) 665,691 (50,000) Total Expenditures & Transfers $ 208,762,002 $ 21,063,659 $ 174,704,872 $ 10,124,296 $ 2,869,175 Fund Balance Addition/(Reduction) $ 50,000 $ 50,000
TOTALS Revenues $ 2,497,398,480 $ 271,027,249 $ 1,204,380,005 $ 148,506,160 $ 603,909,169 $ 204,997,406 $ 32,309,844 $ 32,268,647 Expenditures and Transfers Expenditures $ 2,583,928,625 $ 270,814,597 $ 1,240,832,479 $ 147,592,792 $ 629,485,104 $ 201,941,634 $ 30,010,343 $ 63,251,676 Mandatory Transfers 57,991,819 9,191,253 39,495,091 3,225,223 5,950,252 130,000 Non-Mandatory Transfers (145,954,012) (8,978,601) (75,947,565) (2,311,855) (31,526,187) 1,488,203 2,220,345 (30,898,352) Total Expenditures & Transfers $ 2,495,966,432 $ 271,027,249 $ 1,204,380,005 $ 148,506,160 $ 603,909,169 $ 203,429,837 $ 32,230,688 $ 32,483,324 Fund Balance Addition/(Reduction) $ 1,432,048 $ 1,567,569 $ 79,156 $ (214,677)
Knoxville includes UT Knoxville and UT Space Institute.
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33 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Summary by Unit Unrestricted Current Funds, Revenues, Expenditures, and Transfers
Health Science Institute of Institute for System Total System Chattanooga Knoxville Martin Center Agriculture Public Service Administration EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 754,681,310 $ 118,790,610 $ 472,611,737 $ 62,206,062 $ 88,472,873 $ 12,600,028 State Appropriations 631,093,152 60,331,105 259,812,858 35,369,397 163,202,524 92,419,764 $ 13,815,487 $ 6,142,017 Grants & Contracts 47,499,044 1,049,400 23,910,000 241,400 16,896,662 4,350,205 1,051,377 Sales & Service 59,467,883 2,973,919 5,329,970 3,672,746 19,404,781 28,086,467 Other Sources 58,658,960 269,500 3,862,518 796,476 1,071,920 16,869,948 11,511,968 24,276,630 Total Revenues $ 1,551,400,349 $ 183,414,534 $ 765,527,083 $ 102,286,081 $ 289,048,760 $ 154,326,412 $ 26,378,832 $ 30,418,647
Expenditures and Transfers Instruction $ 594,259,973 $ 82,297,071 $ 280,177,064 $ 45,765,352 $ 146,579,955 $ 39,440,531 Research 176,348,978 5,299,685 105,281,202 181,351 22,135,629 43,451,111 Public Service 87,327,025 2,820,618 7,785,273 837,636 761,983 52,050,749 $ 23,070,766 Academic Support 194,097,734 18,506,042 90,437,155 11,164,072 64,092,349 9,641,716 256,400 Student Services 107,966,320 27,418,017 58,583,386 14,357,381 7,607,536 Institutional Support 181,359,871 16,453,269 62,192,729 7,710,697 32,102,062 2,747,273 752,165 $ 59,401,676 Op/Maint Physical Plant 156,497,015 19,223,094 86,322,029 11,037,851 34,098,324 3,815,717 2,000,000 Scholarships & Fellowships 148,858,230 17,577,617 109,883,479 13,656,234 7,617,357 123,543 Subtotal Expenditures $ 1,646,715,146 $ 189,595,413 $ 800,662,317 $ 104,710,574 $ 314,995,195 $ 151,270,640 $ 24,079,331 $ 61,401,676 Mandatory Transfers 10,443,574 3,438,000 742,769 553,053 5,579,752 - 0 130,000 Non Mandatory Transfers (107,140,419) (9,618,879) (35,878,003) (2,977,546) (31,476,187) 1,488,203 2,220,345 (30,898,352) Total Expenditures & Transfers $ 1,550,018,301 $ 183,414,534 $ 765,527,083 $ 102,286,081 $ 289,098,760 $ 152,758,843 $ 26,299,676 $ 30,633,324 Fund Balance Addition/(Reduction) $ 1,382,048 $ (50,000) $ 1,567,569 $ 79,156 $ (214,677)
AUXILIARIES Revenues $ 208,552,002 $ 21,063,659 $ 174,444,872 $ 10,124,296 $ 2,919,175 Expenditures and Transfers Expenditures $ 199,767,350 $ 14,670,128 $ 175,762,112 $ 6,786,435 $ 2,548,675 Mandatory Transfers 47,548,245 5,753,253 38,752,322 2,672,170 370,500 Non-Mandatory Transfers (38,813,593) 640,278 (40,069,562) 665,691 (50,000) Total Expenditures & Transfers $ 208,502,002 $ 21,063,659 $ 174,444,872 $ 10,124,296 $ 2,869,175 Fund Balance Addition/(Reduction) $ 50,000 $ - $ - $ - $ 50,000
TOTALS Revenues $ 1,759,952,351 $ 204,478,193 $ 939,971,955 $ 112,410,377 $ 291,967,935 $ 154,326,412 $ 26,378,832 $ 30,418,647 Expenditures and Transfers Expenditures $ 1,846,482,496 $ 204,265,541 $ 976,424,429 $ 111,497,009 $ 317,543,870 $ 151,270,640 $ 24,079,331 $ 61,401,676 Mandatory Transfers 57,991,819 9,191,253 39,495,091 3,225,223 5,950,252 130,000 Non-Mandatory Transfers (145,954,012) (8,978,601) (75,947,565) (2,311,855) (31,526,187) 1,488,203 2,220,345 (30,898,352) Total Expenditures & Transfers $ 1,758,520,303 $ 204,478,193 $ 939,971,955 $ 112,410,377 $ 291,967,935 $ 152,758,843 $ 26,299,676 $ 30,633,324 Fund Balance Addition/(Reduction) $ 1,432,048 $ 1,567,569 $ 79,156 $ (214,677)
Knoxville includes UT Knoxville and UT Space Institute.
B-5
34 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System 3 FY 2020-21 Revised Budget Five Year History Current Funds Revenues, Expenditures and Transfers - Unrestricted
Change FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2017 to FY 2021 Actual Actual Actual Actual Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 681,407,238 $ 710,190,418 $ 746,610,856 $ 764,506,490 $ 754,681,310 $ 73,274,072 10.8 % State Appropriations 527,561,549 573,016,552 592,612,952 639,918,152 631,093,152 103,531,603 19.6 % Grants & Contracts 49,379,698 51,045,254 53,857,681 53,256,325 47,499,044 (1,880,654) (3.8) % Sales & Service 67,209,889 69,851,826 67,576,317 56,898,631 59,467,883 (7,742,006) (11.5) % Other Sources 61,722,810 63,243,539 68,902,249 69,049,649 58,658,960 (3,063,850) (5.0) % Total Revenues $ 1,387,281,183 $ 1,467,347,589 $ 1,529,560,055 $ 1,583,629,248 $ 1,551,400,349 $ 164,119,166 11.8 %
Expenditures and Transfers Instruction $ 528,475,592 $ 498,578,427 $ 510,622,839 $ 517,826,331 $ 594,259,973 $ 65,784,381 12.4 % Research 82,089,147 131,121,213 140,499,005 147,846,046 176,348,978 94,259,831 114.8 % Public Service 77,402,864 79,639,156 81,353,080 77,459,911 87,327,025 9,924,161 12.8 % Academic Support 154,939,269 171,075,686 175,049,100 177,371,195 194,097,734 39,158,465 25.3 % Student Services 95,228,666 96,897,429 98,555,131 99,453,375 107,966,320 12,737,654 13.4 % Institutional Support 147,400,379 164,355,023 168,589,108 175,763,031 181,359,871 33,959,492 23.0 % Operation & Maintenance of Plant 140,923,628 150,918,426 150,151,547 158,633,657 156,497,015 15,573,387 11.1 % Scholarships & Fellowships 100,705,270 115,038,571 124,958,755 129,968,045 148,858,230 48,152,960 47.8 % Subtotal Expenditures $ 1,327,164,814 $ 1,407,623,932 $ 1,449,778,566 $ 1,484,321,590 $ 1,646,715,146 $ 319,550,332 24.1 % Mandatory Transfers 10,203,193 10,733,175 15,435,736 13,109,489 10,443,574 240,381 2.4 % Non-Mandatory Transfers 52,585,255 35,756,137 68,521,859 79,126,450 (107,140,419) (159,725,674) (303.7) % Total Expenditures & Transfers $ 1,389,953,262 $ 1,454,113,244 $ 1,533,736,161 $ 1,576,557,529 $ 1,550,018,301 $ 160,065,039 11.5 % Fund Balance Addition/(Reduction) $ (2,672,078) $ 13,234,345 $ (4,176,105) $ 7,071,719 $ 1,382,048
AUXILIARIES Revenues $ 254,223,902 $ 266,172,939 $ 262,956,722 $ 253,541,204 $ 208,552,002 $ (45,671,900) (18.0) % Expenditures and Transfers Expenditures $ 186,136,905 $ 206,098,534 $ 201,428,896 $ 201,020,939 $ 199,767,350 $ 13,630,445 7.3 % Mandatory Transfers 42,169,835 46,326,750 45,401,257 54,855,089 47,548,245 5,378,410 12.8 % Non-Mandatory Transfers 25,428,666 9,507,965 20,601,174 (393,435) (38,813,593) (64,242,259) (252.6) % Total Expenditures & Transfers $ 253,735,406 $ 261,933,249 $ 267,431,327 $ 255,482,593 $ 208,502,002 $ (45,233,404) (17.8) % Fund Balance Addition/(Reduction) $ 488,496 $ 4,239,690 $ (4,474,606) $ (1,941,388) $ 50,000
TOTALS Revenues $ 1,641,505,085 $ 1,733,520,528 $ 1,792,516,777 $ 1,837,170,452 $ 1,759,952,351 $ 118,447,266 7.2 % Expenditures and Transfers Expenditures $ 1,513,301,719 $ 1,613,722,467 $ 1,651,207,462 $ 1,685,342,529 $ 1,846,482,496 $ 333,180,777 22.0 % Mandatory Transfers 52,373,028 57,059,925 60,836,993 67,964,578 57,991,819 5,618,791 10.7 % Non-Mandatory Transfers 78,013,921 45,264,102 89,123,033 78,733,015 (145,954,012) (223,967,933) (287.1) % Total Expenditures & Transfers $ 1,643,688,668 $ 1,716,046,494 $ 1,801,167,488 $ 1,832,040,122 $ 1,758,520,303 $ 114,831,635 7.0 % Fund Balance Addition/(Reduction) $ (2,183,583) $ 17,474,035 $ (8,650,711) $ 5,130,330 $ 1,432,048
B-6
35 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System 3 FY 2020-21 Revised Budget Summary Five Year History Current Funds Revenues, Expenditures and Transfers - Unrestricted and Restricted
Change FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 TO FY 2021 Actual Actual Actual Actual Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 681,407,238 $ 710,190,418 $ 746,610,856 $ 764,506,490 $ 754,681,310 $ 73,274,072 10.8 % State Appropriations 546,284,768 592,062,887 610,765,836 656,204,483 647,372,932 101,088,164 18.5 % Grants & Contracts 683,228,016 636,058,864 693,424,426 702,555,500 690,221,874 6,993,858 1.0 % Sales & Service 67,209,889 69,851,826 67,576,317 56,898,631 59,467,883 (7,742,006) (11.5) % Other Sources 137,649,683 139,504,137 151,957,239 150,237,117 136,842,479 (807,204) (0.6) % Total Revenues $ 2,115,779,593 $ 2,147,668,133 $ 2,270,334,675 $ 2,330,402,222 $ 2,288,586,478 $ 172,806,885 8.2 %
Expenditures and Transfers Instruction $ 705,774,497 $ 691,201,220 $ 713,275,720 $ 718,398,379 $ 812,084,668 $ 106,310,171 15.1 % Research 266,074,863 323,493,599 339,531,119 340,459,794 372,693,801 106,618,938 40.1 % Public Service 146,773,079 150,461,752 155,162,904 147,913,206 160,829,830 14,056,751 9.6 % Academic Support 207,096,268 218,247,500 225,257,207 229,901,710 241,161,988 34,065,720 16.4 % Student Services 97,803,344 100,380,026 101,857,372 102,352,867 111,117,117 13,313,773 13.6 % Institutional Support 149,261,875 166,685,771 170,448,648 182,412,654 186,363,194 37,101,319 24.9 % Operation & Maintenance of Plant 141,350,370 151,286,259 150,502,571 159,048,262 156,829,360 15,478,990 11.0 % Scholarships & Fellowships 272,381,517 295,164,163 306,406,301 331,245,119 342,821,317 70,439,800 25.9 % Subtotal Expenditures $ 1,986,515,814 $ 2,096,920,290 $ 2,162,441,842 $ 2,211,731,991 $ 2,383,901,275 $ 397,385,461 20.0 % Mandatory Transfers 10,203,193 10,733,175 15,435,736 13,109,489 10,443,574 240,381 2.4 % Non-Mandatory Transfers 52,585,255 35,756,137 68,521,859 79,126,450 (107,140,419) (159,725,674) (303.7) % Total Expenditures & Transfers $ 2,049,304,262 $ 2,143,409,602 $ 2,246,399,437 $ 2,303,967,930 $ 2,287,204,430 $ 237,900,168 11.6 % Fund Balance Addition/(Reduction) $ 66,475,332 $ 4,258,531 $ 23,935,238 $ 26,434,292 $ 1,382,048
AUXILIARIES Revenues $ 255,189,378 $ 266,956,202 $ 263,466,564 $ 253,981,095 $ 208,812,002 $ (46,377,376) (18.2) % Expenditures and Transfers Expenditures $ 186,905,317 $ 207,035,549 $ 202,169,439 $ 201,215,894 $ 200,027,350 $ 13,122,033 7.0 % Mandatory Transfers 42,169,835 46,326,750 45,401,257 54,855,089 47,548,245 5,378,410 12.8 % Non-Mandatory Transfers 25,428,666 9,507,965 20,601,174 (393,435) (38,813,593) (64,242,259) (252.6) % Total Expenditures & Transfers $ 254,503,818 $ 262,870,264 $ 268,171,870 $ 255,677,548 $ 208,762,002 $ (45,741,816) (18.0) % Fund Balance Addition/(Reduction) $ 685,560 $ 4,085,938 $ (4,705,306) $ (1,696,453) $ 50,000
TOTALS Revenues $ 2,370,968,971 $ 2,414,624,335 $ 2,533,801,239 $ 2,584,383,317 $ 2,497,398,480 $ 126,429,509 5.3 % Expenditures and Transfers Expenditures $ 2,173,421,131 $ 2,303,955,839 $ 2,364,611,281 $ 2,412,947,885 $ 2,583,928,625 $ 410,507,494 18.9 % Mandatory Transfers 52,373,028 57,059,925 60,836,993 67,964,578 57,991,819 5,618,791 10.7 % Non-Mandatory Transfers 78,013,921 45,264,102 89,123,033 78,733,015 (145,954,012) (223,967,933) (287.1) % Total Expenditures & Transfers $ 2,303,808,080 $ 2,406,279,866 $ 2,514,571,307 $ 2,559,645,478 $ 2,495,966,432 $ 192,158,352 8.3 % Fund Balance Addition/(Reduction) $ 67,160,891 $ 8,344,469 $ 19,229,932 $ 24,737,839 $ 1,432,048
B-7
36 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Summary Unrestricted and Restricted Current Funds Revenues, Expenditures and Transfers
FY 2019-20 FY 2020-21 FY 2020-21 Change Actual Original Revised Original to Revised Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Amount % EDUCATION AND GENERAL Revenues Tuition & Fees $ 764,506,490 $ 764,506,490 $ 737,846,711 $ 737,846,711 $ 754,681,310 $ 754,681,310 $ 16,834,599 2.3 % State Appropriations 639,918,152 $ 16,286,331 656,204,483 630,641,552 $ 16,253,815 646,895,367 631,093,152 $ 16,279,780 647,372,932 477,565 0.1 % Grants & Contracts 53,256,325 649,299,175 702,555,500 45,940,594 633,874,650 679,815,244 47,499,044 642,722,830 690,221,874 10,406,630 1.5 % Sales & Service 56,898,631 56,898,631 60,882,793 60,882,793 59,467,883 59,467,883 (1,414,910) (2.3) % Other Sources 69,049,649 81,187,468 150,237,117 59,545,292 79,811,289 139,356,581 58,658,960 78,183,519 136,842,479 (2,514,102) (1.8) % Total Revenues $ 1,583,629,248 $ 746,772,975 $ 2,330,402,222 $ 1,534,856,942 $ 729,939,754 $ 2,264,796,696 $ 1,551,400,349 $ 737,186,129 $ 2,288,586,478 $ 23,789,782 1.1 %
Expenditures and Transfers Instruction $ 517,826,331 $ 200,572,048 $ 718,398,379 570,308,488 $ 216,223,572 $ 786,532,060 $ 594,259,973 $ 217,824,695 $ 812,084,668 $ 25,552,608 3.2 % Research 147,846,046 192,613,748 340,459,794 131,117,132 200,551,683 331,668,815 176,348,978 196,344,823 372,693,801 41,024,986 12.4 % Public Service 77,459,911 70,453,295 147,913,206 83,717,359 73,361,135 157,078,494 87,327,025 73,502,805 160,829,830 3,751,336 2.4 % Academic Support 177,371,195 52,530,515 229,901,710 180,940,067 49,266,125 230,206,192 194,097,734 47,064,254 241,161,988 10,955,796 4.8 % Student Services 99,453,375 2,899,492 102,352,867 100,825,163 2,417,933 103,243,096 107,966,320 3,150,797 111,117,117 7,874,021 7.6 % Institutional Support 175,763,031 6,649,624 182,412,654 176,036,643 2,279,236 178,315,879 181,359,871 5,003,323 186,363,194 8,047,315 4.5 % Operations & Maintenance of Plant 158,633,657 414,606 159,048,262 155,367,360 439,280 155,806,640 156,497,015 332,345 156,829,360 1,022,720 0.7 % Scholarships & Fellowships 129,968,045 201,277,074 331,245,119 138,694,663 185,354,605 324,049,268 148,858,230 193,963,087 342,821,317 18,772,049 5.8 % Subtotal Expenditures $ 1,484,321,590 $ 727,410,402 $ 2,211,731,991 $ 1,537,006,875 $ 729,893,569 $ 2,266,900,444 $ 1,646,715,146 $ 737,186,129 $ 2,383,901,275 $ 117,000,831 5.2 % Mandatory Transfers 13,109,489 13,109,489 10,443,574 10,443,574 10,443,574 10,443,574 Non-Mandatory Transfers 79,126,450 79,126,450 (14,142,340) (14,142,340) (107,140,419) (107,140,419) (92,998,079) (657.6) % Total Expenditures & Transfers $ 1,576,557,529 $ 727,410,402 $ 2,303,967,930 $ 1,533,308,109 $ 729,893,569 $ 2,263,201,678 $ 1,550,018,301 $ 737,186,129 $ 2,287,204,430 $ 24,002,752 1.1 % Fund Balance Addition / (Reduction) $ 7,071,719 $ 19,362,573 $ 26,434,292 $ 1,548,833 $ 46,185 $ 1,595,018 $ 1,382,048 $ 1,382,048
AUXILIARIES Revenues $ 253,541,204 $ 439,890 $ 253,981,095 $ 262,526,727 $ 260,000 $ 262,786,727 $ 208,552,002 $ 260,000 $ 208,812,002 $ (53,974,725) (20.5) % Expenditures and Transfers Expenditures $ 201,020,939 $ 194,955 $ 201,215,894 $ 202,078,763 $ 260,000 $ 202,338,763 $ 199,767,350 $ 260,000 $ 200,027,350 $ (2,311,413) (1.1) % Mandatory Transfers 54,855,089 54,855,089 44,022,452 44,022,452 47,548,245 47,548,245 3,525,793 8.0 % Non-Mandatory Transfers (393,435) (393,435) 16,425,512 16,425,512 (38,813,593) (38,813,593) (55,239,105) (336.3) % Total Expenditures & Transfers $ 255,482,593 $ 194,955 $ 255,677,548 $ 262,526,727 $ 260,000 $ 262,786,727 $ 208,502,002 $ 260,000 $ 208,762,002 $ (54,024,725) (20.6) % Fund Balance Addition / (Reduction) $ (1,941,388) $ 244,935 $ (1,696,453) $ 50,000 $ 50,000
TOTALS Revenues $ 1,837,170,452 $ 747,212,865 $ 2,584,383,317 $ 1,797,383,669 $ 730,199,754 $ 2,527,583,423 $ 1,759,952,351 $ 737,446,129 $ 2,497,398,480 $ (30,184,943) (1.2) % Expenditures and Transfers Expenditures $ 1,685,342,529 $ 727,605,357 $ 2,412,550,907 $ 1,739,085,638 $ 730,153,569 $ 2,469,239,207 $ 1,846,482,496 $ 737,446,129 $ 2,583,928,625 $ 114,689,418 4.6 % Mandatory Transfers 67,964,578 67,964,578 54,466,026 54,466,026 57,991,819 57,991,819 3,525,793 6.5 % Non-Mandatory Transfers 78,733,015 78,733,015 2,283,172 2,283,172 (145,954,012) (145,954,012) (148,237,184) (6,492.6) % Total Expenditures & Transfers $ 1,832,040,122 $ 727,605,357 $ 2,559,645,478 $ 1,795,834,836 $ 730,153,569 $ 2,525,988,405 $ 1,758,520,303 $ 737,446,129 $ 2,495,966,432 $ (30,021,973) (1.2) % Fund Balance Addition / (Reduction) $ 5,130,330 $ 19,607,508 $ 24,737,839 $ 1,548,833 $ 46,185 $ 1,595,018 $ 1,432,048 $ 1,432,048
B-8
37 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Natural Classifications by Unit Unrestricted Current Funds Expenditures
Health Science Institute of Institute for Public System Total System Chattanooga Knoxville Martin Center Agriculture Service Administration EDUCATIONAL AND GENERAL Salaries and Benefits Salaries Academic $ 376,799,863 $ 49,197,159 $ 182,303,501 $ 25,316,864 $ 87,383,446 $ 32,009,505 $ 442,425 $ 146,963 Non-Academic 385,799,404 43,555,133 154,668,162 23,139,797 78,451,946 48,788,701 12,158,443 25,037,222 Students 8,530,182 914,842 5,012,618 1,329,954 775,499 316,896 20,800 159,573 Total Salaries $ 771,129,449 $ 93,667,134 $ 341,984,281 $ 49,786,615 $ 166,610,891 $ 81,115,102 $ 12,621,668 $ 25,343,758 Staff Benefits 272,303,319 35,882,922 119,240,487 20,574,319 49,742,179 33,329,183 4,263,048 9,271,181 Total Salaries and Benefits $ 1,043,432,768 $ 129,550,056 $ 461,224,768 $ 70,360,934 $ 216,353,070 $ 114,444,285 $ 16,884,716 $ 34,614,939 Operating 579,122,372 58,953,618 325,667,829 32,534,162 91,798,734 36,411,810 6,969,482 26,786,737 Equipment and Capital Outlay 24,160,006 1,091,739 13,769,720 1,815,478 6,843,391 414,545 225,133 Total Expenditures $ 1,646,715,146 $ 189,595,413 $ 800,662,317 $ 104,710,574 $ 314,995,195 $ 151,270,640 $ 24,079,331 $ 61,401,676
AUXILIARIES Salaries and Benefits Salaries Academic $ 726,044 $ 36,000 $ 690,044 Non-Academic 61,603,682 3,455,457 55,100,011 $ 1,498,310 $ 1,549,904 Students 5,219,601 253,085 4,460,456 506,060 Total Salaries $ 67,549,327 $ 3,744,542 $ 60,250,511 $ 2,004,370 $ 1,549,904 Staff Benefits 16,568,202 1,163,708 14,572,906 677,860 153,728 Total Salaries and Benefits $ 84,117,529 $ 4,908,250 $ 74,823,417 $ 2,682,230 $ 1,703,632 Operating 115,316,321 9,759,378 100,612,695 4,099,205 845,043 Equipment and Capital Outlay 333,500 2,500 326,000 5,000 Total Expenditures $ 199,767,350 $ 14,670,128 $ 175,762,112 $ 6,786,435 $ 2,548,675
TOTALS Salaries and Benefits Salaries Academic $ 377,525,907 $ 49,233,159 $ 182,993,545 $ 25,316,864 $ 87,383,446 $ 32,009,505 $ 442,425 $ 146,963 Non-Academic 447,403,086 47,010,590 209,768,173 24,638,107 80,001,850 48,788,701 12,158,443 25,037,222 Students 13,749,783 1,167,927 9,473,074 1,836,014 775,499 316,896 20,800 159,573 Total Salaries $ 838,678,776 $ 97,411,676 $ 402,234,792 $ 51,790,985 $ 168,160,795 $ 81,115,102 $ 12,621,668 $ 25,343,758 Staff Benefits 288,871,521 37,046,630 133,813,393 21,252,179 49,895,907 33,329,183 4,263,048 9,271,181 Total Salaries and Benefits $ 1,127,550,297 $ 134,458,306 $ 536,048,185 $ 73,043,164 $ 218,056,702 $ 114,444,285 $ 16,884,716 $ 34,614,939 Operating 694,438,693 68,712,996 426,280,524 36,633,367 92,643,777 36,411,810 6,969,482 26,786,737 Equipment and Capital Outlay 24,493,506 1,094,239 14,095,720 1,820,478 6,843,391 414,545 225,133 Total Expenditures $ 1,846,482,496 $ 204,265,541 $ 976,424,429 $ 111,497,009 $ 317,543,870 $ 151,270,640 $ 24,079,331 $ 61,401,676
Knoxville includes UTK Knoxville and UT Space Institute.
B-9
38 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System FY 2020-21 Revised Budget 3 Net Assets by Unit Unrestricted Current Funds, Revenues, Expenditures, and Transfers
Health Science Institute of Institute for System Total System Chattanooga Knoxville Martin Center Agriculture Public Service Administration
FY 2018-19 Actuals Net Assets at Beginning of Year $ 135,615,713 $ 12,475,947 $ 56,009,282 $ 9,504,870 $ 17,220,470 $ 15,804,693 $ 1,521,370 $ 23,079,082 Operating Funds Revenue $ 1,792,516,777 $ 199,283,332 $ 982,600,576 $ 108,965,547 $ 288,945,066 $ 151,662,995 $ 26,517,043 $ 34,542,217 Less: Expenditures and Transfers (1,801,167,488) (197,947,418) (980,280,837) (111,816,183) (294,016,586) (158,317,851) (26,262,636) (32,525,977) Carryover Funds To/(From) Net Assets $ (8,650,711) $ 1,335,915 $ 2,319,739 $ (2,850,635) $ (5,071,521) $ (6,654,856) $ 254,408 $ 2,016,240
Net Assets Detail: ALLOCATED Working Capital $ 28,771,234 $ 4,911,862 $ 10,265,180 $ 1,315,110 $ 5,657,443 $ 1,490,860 $ 76,337 $ 5,054,442 Revolving Funds 23,846,487 6,756,775 17,089,712 Encumbrances 3,510,352 1,449,241 101,015 503,380 1,456,716 Reserve for Reappropriations 2,244,809 $ 700,000 1,544,809 Total Allocated Net Assets $ 58,372,882 $ 4,911,862 $ 18,471,196 $ 1,416,125 $ 6,160,823 $ 2,947,576 $ 776,337 $ 23,688,963 UNALLOCATED $ 68,592,121 $ 8,900,000 $ 39,857,825 $ 5,238,110 $ 5,988,126 $ 6,202,261 $ 999,440 $ 1,406,359 Total Net Assets - June 30, 2019 $ 126,965,002 $ 13,811,862 $ 58,329,021 $ 6,654,235 $ 12,148,949 $ 9,149,837 $ 1,775,777 $ 25,095,322 Percent Unallocated of Expend. & Transfers 3.81% 4.50% 4.07% 4.68% 2.04% 3.92% 3.81% 2.73%
FY 2019-20 Actual Net Assets at Beginning of Year $ 126,965,002 $ 13,811,862 $ 58,329,021 $ 6,654,235 $ 12,148,949 $ 9,149,837 $ 1,775,777 $ 25,095,322 Operating Funds Revenue $ 1,837,170,451 $ 208,131,358 $ 998,443,860 $ 113,018,688 $ 291,073,757 $ 153,962,073 $ 25,774,349 $ 46,766,366 Less: Expenditures and Transfers (1,832,040,123) (206,422,889) (1,001,507,125) (110,288,807) (291,424,868) (153,440,843) (25,812,887) (43,142,704) Carryover Funds To/(From) Net Assets $ 5,130,328 $ 1,708,469 $ (3,063,265) $ 2,729,881 $ (351,111) $ 521,230 $ (38,538) $ 3,623,662
Net Assets Detail: ALLOCATED Working Capital $ 29,782,200 $ 6,345,330 $ 9,229,849 $ 1,108,791 $ 6,949,001 $ 1,995,119 $ 39,594 $ 4,114,516 Revolving Funds 18,929,223 4,019,443 14,909,780 Encumbrances 3,490,491 1,788,069 10,847 $ 421,771 1,269,804 Reserve for Reappropriations 11,779,034 3,000,000 $ 700,000 8,079,034 Total Allocated Net Assets $ 63,980,948 $ 6,345,330 $ 15,037,361 $ 4,119,638 $ 7,370,772 $ 3,264,923 $ 739,594 $ 27,103,330 UNALLOCATED $ 68,114,382 $ 9,175,000 $ 40,228,395 $ 5,264,478 $ 4,427,065 $ 6,406,145 $ 997,645 $ 1,615,654 Total Net Assets - June 30, 2020 $ 132,095,330 $ 15,520,331 $ 55,265,756 $ 9,384,116 $ 11,797,837 $ 9,671,067 $ 1,737,239 $ 28,718,984 Percent Unallocated of Expend. & Transfers 3.72% 4.44% 4.02% 4.77% 1.52% 4.17% 3.86% 2.60%
FY 2020-21 Revised Budget Net Assets at Beginning of Year $ 132,095,330 $ 15,520,331 $ 55,265,756 $ 9,384,116 $ 11,797,837 $ 9,671,067 $ 1,737,239 $ 28,718,984 Operating Funds Revenue $ 1,759,952,351 $ 204,478,193 $ 939,971,955 $ 112,410,377 $ 291,967,935 $ 154,326,412 $ 26,378,832 $ 30,418,647 Less: Expenditures and Transfers (1,758,520,303) (204,478,193) (939,971,955) (112,410,377) (291,967,935) (152,758,843) (26,299,676) (30,633,324) Carryover Funds To/(From) Net Assets $ 1,432,048 $ - $ - $ - $ - $ 1,567,569 $ 79,156 $ (214,677)
Net Assets Detail: ALLOCATED Working Capital $ 28,282,205 $ 6,345,330 $ 9,229,852 $ 1,108,791 $ 5,449,002 $ 1,995,119 $ 39,595 $ 4,114,516 Revolving Funds 18,929,223 $ 4,019,443 14,909,780 Encumbrances 3,143,755 $ 1,778,069 $ 10,850 $ 85,032 $ 1,269,804 Reserve for Reappropriations 13,104,034 3,000,000 1,325,000 $ 700,000 8,079,034 Total Allocated Net Assets $ 63,459,217 $ 6,345,330 $ 15,027,364 $ 4,119,641 $ 5,534,034 $ 4,589,923 $ 739,595 $ 27,103,330 UNALLOCATED $ 70,078,013 $ 9,175,000 $ 40,228,397 $ 5,264,478 $ 6,263,805 $ 6,648,715 $ 1,076,800 $ 1,420,818 Estimated Total Net Assets - June 30, 2021 $ 133,527,378 $ 15,520,331 $ 55,265,756 $ 9,384,116 $ 11,797,838 $ 11,238,636 $ 1,816,395 $ 28,504,307 Percent Unallocated of Expend. & Transfers 3.99% 4.49% 4.28% 4.68% 2.15% 4.35% 4.09% 2.86%
Recommended percent unallocated of expenditures and transfers is 2% to 5% is 2.5% for unrestricted E&G and 3% to 5% for auxiliaries. For System Administration, transfers-in for system charge is excluded from the calculation. Knoxville includes UT Knoxville and UT Space Institute. B-10
39 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System FY 2020-21 Revised Budget 3 Net Assets by Unit Unrestricted Educational and General Current Funds
Health Science Institute of Institute for System Total System Chattanooga Knoxville Martin Center Agriculture Public Service Administration FY 2018-19 Actual Net Assets at Beginning of Year $ 110,305,402 $ 10,602,865 $ 33,501,164 $ 8,665,342 $ 17,111,047 $ 15,804,693 $ 1,521,369 $ 23,098,923 Operating Funds Revenue $ 1,529,560,056 $ 179,649,005 $ 750,996,779 $ 99,014,288 $ 287,177,729 $ 151,662,995 $ 26,517,043 $ 34,542,217 Less: Expenditures and Transfers (1,533,736,161) (178,507,504) (744,199,068) (101,696,667) (292,226,459) (158,317,851) (26,262,636) (32,525,977) Carryover Funds To/(From) Net Assets $ (4,176,105) $ 1,141,501 $ 6,797,711 $ (2,682,379) $ (5,048,730) $ (6,654,856) $ 254,408 $ 2,016,240
Net Assets Detail: ALLOCATED Working Capital $ 22,550,458 $ 3,744,367 $ 5,624,748 $ 909,330 $ 5,650,376 $ 1,490,859 $ 76,336 $ 5,054,442 Revolving Funds 19,195,985 2,086,432 17,109,553 Encumbrances 3,510,352 1,449,241 101,015 503,380 1,456,716 Unexpended Gifts Reserve for Reappropriations 2,244,809 - $ 700,000 1,544,809 Total Allocated Net Assets $ 47,501,604 $ 3,744,367 $ 9,160,421 $ 1,010,345 $ 6,153,756 $ 2,947,575 $ 776,336 $ 23,708,804 UNALLOCATED $ 58,607,851 $ 8,000,000 $ 31,138,453 $ 4,972,617 $ 5,908,561 $ 6,202,261 $ 999,441 $ 1,386,518 Total Net Assets - June 30, 2019 $ 106,109,458 $ 11,744,367 $ 40,298,875 $ 5,982,963 $ 12,062,317 $ 9,149,837 $ 1,775,777 $ 25,095,322 Percent Unallocated of Expend. & Transfers 3.82% 4.48% 4.18% 4.89% 2.02% 3.92% 3.81% 2.69%
FY 2019-20 Actual Net Assets at Beginning of Year $ 106,109,458 $ 11,744,367 $ 40,298,875 $ 5,982,963 $ 12,062,317 $ 9,149,837 $ 1,775,777 $ 25,095,322 Operating Funds Revenue $ 1,583,629,248 $ 188,427,260 $ 774,466,033 $ 104,719,233 $ 289,513,934 $ 153,962,073 $ 25,774,349 $ 46,766,366 Less: Expenditures and Transfers $ (1,576,557,529) (188,168,585) (774,121,444) (102,021,024) (289,850,042) (153,440,843) (25,812,887) (43,142,704) Carryover Funds To/(From) Net Assets $ 7,071,719 $ 258,675 $ 344,589 $ 2,698,209 $ (336,108) $ 521,230 $ (38,538) $ 3,623,662
Net Assets Detail: ALLOCATED Working Capital $ 31,808,129 $ 3,753,043 $ 4,209,389 $ 762,854 $ 16,933,618 $ 1,995,117 $ 39,594 $ 4,114,514 Revolving Funds 17,214,498 2,304,718 14,909,780 Encumbrances 3,490,492 1,788,069 10,847 421,771 1,269,805 Unexpended Gifts Reserve for Reappropriations 11,779,034 3,000,000 $ 700,000 8,079,034 Total Allocated Net Assets $ 64,292,153 $ 3,753,043 $ 8,302,176 $ 3,773,701 $ 17,355,389 $ 3,264,922 $ 739,594 $ 27,103,328 UNALLOCATED $ 58,889,023 $ 8,250,000 $ 32,341,288 $ 4,907,471 $ 4,370,820 $ 6,406,145 $ 997,645 $ 1,615,654 Estimated Total Net Assets - June 30, 2020 $ 113,181,177 $ 12,003,043 $ 40,643,463 $ 8,681,171 $ 11,726,210 $ 9,671,068 $ 1,737,238 $ 28,718,984 Percent Unallocated of Expend. & Transfers 3.74% 4.38% 4.18% 4.81% 1.51% 4.17% 3.86% 2.60%
FY 2020-21 Revised Budget Net Assets at Beginning of Year $ 113,181,177 $ 12,003,043 $ 40,643,463 $ 8,681,171 $ 11,726,210 $ 9,671,068 $ 1,737,238 $ 28,718,984 Operating Funds Revenue $ 1,551,400,349 $ 183,414,534 $ 765,527,083 $ 102,286,081 $ 289,048,760 $ 154,326,412 $ 26,378,832 $ 30,418,647 Less: Expenditures and Transfers $ (1,550,018,301) (183,414,534) (765,527,083) (102,286,081) (289,098,760) (152,758,843) (26,299,676) (30,633,324) Carryover Funds To/(From) Net Assets $ 1,382,048 $ - $ - $ - $ (50,000) $ 1,567,569 $ 79,156 $ (214,677)
Net Assets Detail: ALLOCATED Working Capital $ 20,308,129 $ 3,753,043 $ 4,209,388 $ 762,854 $ 5,433,616 $ 1,995,118 $ 39,594 $ 4,114,516 Revolving Funds 17,194,658 2,304,719 14,889,939 Encumbrances 3,153,752 1,788,069 10,847 85,032 1,269,804 Reserve for Reappropriations 13,104,034 3,000,000 1,325,000 $ 700,000 8,079,034 Total Allocated Net Assets $ 53,760,573 $ 3,753,043 $ 8,302,176 $ 3,773,701 $ 5,518,648 $ 4,589,922 $ 739,594 $ 27,083,489 UNALLOCATED $ 60,802,652 $ 8,250,000 $ 32,341,288 $ 4,907,471 $ 6,157,560 $ 6,648,715 $ 1,076,800 $ 1,420,818 Estimated Total Net Assets - June 30, 2021 $ 114,563,225 $ 12,003,043 $ 40,643,463 $ 8,681,171 $ 11,676,210 $ 11,238,637 $ 1,816,394 $ 28,504,307 Percent Unallocated of Expend. & Transfers 3.92% 4.50% 4.22% 4.80% 2.13% 4.35% 4.09% 2.86%
Recommended percent unallocated of expenditures and transfers is 2% to 5%. For System Administration, transfers-in for system charge is excluded from the calculation. Knoxville includes UT Knoxville and UT Space Institute.
B-11
40 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System 3 FY 2020-21 Revised Budget Net Assets by Unit Unrestricted Auxiliary Funds, Revenues, Expenditures, and Transfers
Health Science Total System Chattanooga Knoxville Martin Center FY 2018-19 Actual Net Assets at Beginning of Year $ 25,330,147 $ 1,873,080 $ 22,508,119 $ 839,527 $ 109,421 Operating Funds Revenue $ 262,956,722 $ 19,634,328 $ 231,603,798 $ 9,951,260 $ 1,767,336 Less: Expenditures and Transfers (267,431,327) (19,439,914) (236,081,770) (10,119,515) (1,790,128) Carryover Funds To/(From) Net Assets $ (4,474,605) $ 194,414 $ (4,477,972) $ (168,255) $ (22,792) Net Assets at End of Year $ 20,855,542 $ 2,067,494 $ 18,030,147 $ 671,272 $ 86,629
Net Assets Detail: ALLOCATED Working Capital $ 6,220,770 $ 1,167,494 $ 4,640,432 $ 405,779 $ 7,065 Revolving Funds 4,670,343 4,670,343 Total Allocated Net Assets $ 10,891,113 $ 1,167,494 $ 9,310,775 $ 405,779 $ 7,065 UNALLOCATED 9,964,429 $ 900,000 $ 8,719,371 $ 265,493 $ 79,565 Total Net Assets - June 30, 2019 $ 20,855,542 $ 2,067,494 $ 18,030,147 $ 671,272 $ 86,630 Percent Unallocated of Expend. & Transfers 3.73% 4.63% 3.69% 2.62% 4.44%
FY 2019-20 Actual Net Assets at Beginning of Year $ 20,855,542 $ 2,067,494 $ 18,030,147 $ 671,272 $ 86,630 Operating Funds Revenue $ 253,541,205 $ 19,704,098 $ 223,977,828 $ 8,299,456 $ 1,559,823 Less: Expenditures and Transfers $ (255,482,593) (18,254,304) (227,385,680) (8,267,783) (1,574,826) Carryover Funds To/(From) Net Assets $ (1,941,388) $ 1,449,794 $ (3,407,852) $ 31,673 $ (15,003) Net Assets at End of Year $ 18,914,154 $ 3,517,288 $ 14,622,295 $ 702,945 $ 71,627
Net Assets Detail: ALLOCATED Working Capital $ 7,974,071 $ 2,592,287 $ 5,020,463 $ 345,938 $ 15,383 Revolving Funds 1,714,725 1,714,725 Total Allocated Net Assets $ 9,688,796 $ 2,592,287 $ 6,735,188 $ 345,938 $ 15,383 UNALLOCATED 9,225,358 $ 925,000 $ 7,887,107 $ 357,007 $ 56,244 Total Net Assets - June 30, 2020 $ 18,914,154 $ 3,517,287 $ 14,622,295 $ 702,945 $ 71,627 Percent Unallocated of Expend. & Transfers 3.61% 5.07% 3.47% 4.32% 3.57%
FY 2020-21 Revised Budget Net Assets at Beginning of Year $ 18,914,154 $ 3,517,287 $ 14,622,295 $ 702,945 $ 71,627 Operating Funds Revenue $ 208,552,002 $ 21,063,659 $ 174,444,872 $ 10,124,296 $ 2,919,175 Less: Expenditures and Transfers (208,502,002) (21,063,659) (174,444,872) (10,124,296) (2,869,175) Carryover Funds To/(From) Net Assets $ 50,000 $ - $ - $ - $ 50,000 Net Assets at End of Year $ 18,964,154 $ 3,517,287 $ 14,622,295 $ 702,945 $ 121,627
Net Assets Detail: ALLOCATED Working Capital $ 7,974,068 $ 2,592,287 $ 5,020,461 $ 345,938 $ 15,382 Revolving Funds 1,714,725 1,714,725 Encumbrances Total Allocated Net Assets $ 9,688,793 $ 2,592,287 $ 6,735,186 $ 345,938 $ 15,382 UNALLOCATED 9,275,361 $ 925,000 $ 7,887,109 $ 357,007 $ 106,245 Estimated Total Net Assets - June 30, 2021 $ 18,964,154 $ 3,517,287 $ 14,622,295 $ 702,945 $ 121,627 Percent Unallocated of Expend. & Transfers 4.45% 4.39% 4.52% 3.53% 3.70%
Recommended percent unallocated of expenditures and transfers is 3% to 5%. Knoxville includes UT Knoxville and UT Space Institute.
B-12
41 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget State Appropriations Summary Unrestricted Current Educational and General Funds
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % STATE APPROPRIATIONS Chattanooga $ 59,726,805 $ 60,171,705 $ 60,331,105 $ 159,400 0.3 % Knoxville Knoxville $ 249,914,955 $ 250,266,755 $ 250,421,955 $ 155,200 0.1 % Space Institute 9,380,503 9,393,603 9,390,903 (2,700) - % Subtotal Knoxville $ 259,295,458 $ 259,660,358 $ 259,812,858 $ 152,500 0.1 %
Martin 36,452,197 35,419,197 35,369,397 (49,800) (0.1) % Health Science Center 162,456,024 163,011,624 163,202,524 190,900 0.1 % Institute of Agriculture AgResearch $ 31,206,388 $ 31,288,288 $ 31,274,288 $ (14,000) - % Extension 38,387,017 38,539,917 38,539,717 (200) - % College of Veterinary Medicine 22,518,259 22,591,459 22,605,759 14,300 0.1 % Subtotal Institute of Agriculture $ 92,111,664 $ 92,419,664 $ 92,419,764 $ 100 - %
Institute for Public Service Institute for Public Service $ 6,124,885 $ 6,138,385 $ 6,131,385 $ (7,000) (0.1) % Municipal Technical Advisory Service 3,715,551 3,724,351 3,733,051 8,700 0.2 % County Technical Assistance Service 3,205,751 3,214,051 3,222,851 8,800 0.3 % Tennessee Language Center 719,900 716,200 728,200 12,000 1.7 % Subtotal Institute for Public Service $ 13,766,087 $ 13,792,987 $ 13,815,487 $ 22,500 0.2 %
System Administration 16,109,917 6,166,017 6,142,017 (24,000) (0.4) % Total State Appropriations $ 639,918,152 $ 630,641,552 $ 631,093,152 $ 451,600 0. 1 %
B-13
42 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget State Appropriations Five Year History Unrestricted Current Educational and General Funds
Change FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2016-17 TO FY 2020-21 Actual Actual Actual Actual Revised Amount % STATE APPROPRIATIONS Chattanooga $ 46,671,705 $ 51,840,105 $ 55,430,905 $ 59,726,805 $ 60,331,105 $ 13,659,400 29.3 % Knoxville Knoxville $ 202,989,655 $ 226,290,355 $ 232,311,655 $ 249,914,955 $ 250,421,955 $ 47,432,300 23.4 % Space Institute 8,583,903 8,990,803 9,132,803 9,380,503 9,390,903 807,000 9.4 % Subtotal Knoxville $ 211,573,558 $ 235,281,158 $ 241,444,458 $ 259,295,458 $ 259,812,858 $ 48,239,300 22.8 %
Martin $ 31,508,097 $ 33,208,097 $ 34,410,197 $ 36,452,197 $ 35,369,397 $ 3,861,300 12.3 % Health Science Center 141,084,321 149,955,324 154,589,424 162,456,024 163,202,524 22,118,203 15.7 % Institute of Agriculture AgResearch $ 27,745,788 $ 29,161,888 $ 30,008,688 $ 31,206,388 $ 31,274,288 $ 3,528,500 12.7 % Extension 33,950,817 35,701,417 36,651,817 38,387,017 38,539,717 4,588,900 13.5 % College of Veterinary Medicine 18,453,659 20,036,359 21,236,259 22,518,259 22,605,759 4,152,100 22.5 % Subtotal Institute of Agriculture $ 80,150,264 $ 84,899,664 $ 87,896,764 $ 92,111,664 $ 92,419,764 $ 12,269,500 15.3 %
Institute for Public Service Institute for Public Service $ 5,643,985 $ 5,841,485 $ 5,929,385 $ 6,124,885 $ 6,131,385 $ 487,400 8.6 % Municipal Technical Advisory Service 3,159,551 3,410,551 3,535,751 3,715,551 3,733,051 573,500 18.2 % County Technical Assistance Service 2,238,651 2,964,551 3,056,451 3,205,751 3,222,851 984,200 44.0 % Tennessee Language Center - - 665,600 719,900 728,200 728,200 100.0 Subtotal Institute for Public Service $ 11,042,187 $ 12,216,587 $ 13,187,187 $ 13,766,087 $ 13,815,487 $ 2,773,300 25.0 %
System Administration 5,531,417 5,615,617 5,654,017 16,109,917 6,142,017 610,600 11.0 % Total State Appropriations $ 527,561,549 $ 573,016,552 $ 592,612,952 $ 639,918,152 $ 631,093,152 $ 103,531,603 19.6 %
B-14
43 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Auxiliary Enterprises Unrestricted Auxiliary Current Funds Revenues, Expenditures and Transfers
FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % HOUSING Revenues $ 67,084,617 $ 79,421,689 $ 73,017,334 $ (6,404,355) (8.1) % Expenditures and Transfers Expenditures $ 46,060,130 $ 48,274,620 $ 50,704,139 $ 2,429,519 5.0 % Mandatory Transfers 25,457,022 26,083,248 25,732,168 (351,080) (1.3) % Non-Mandatory Transfers (5,293,263) 5,063,821 (3,418,973) (8,482,794) (167.5) % Total Expenditures and Transfers $ 66,223,889 $ 79,421,689 $ 73,017,334 $ (6,404, 355) (8.1) % Fund Balance Addition/(Reduction) $ 860,729
FOOD SERVICE Revenues $ 9,195,184 $ 13,027,003 $ 10,756,278 $ (2,270,725) (17.4) % Expenditures and Transfers Expenditures $ 3,867,937 $ 5,315,004 $ 4,433,006 $ (881,998) (16.6) % Mandatory Transfers 4,520,884 6,871,493 6,871,493 100.0 % Non-Mandatory Transfers 789,461 7,711,999 (598,221) (8,310,220) (107.8) % Total Expenditures and Transfers $ 9,178,282 $ 13,027,003 $ 10,706,278 $ (2,320, 725) (17.8) % Fund Balance Addition/(Reduction) $ 16,902 $ 50,000 $ 50,000
BOOKSTORES Revenues $ 24,539,961 $ 23,210,352 $ 20,039,346 $ (3,171,006) (13.7) % Expenditures and Transfers Expenditures $ 23,516,485 $ 21,543,632 $ 21,253,635 $ (289,997) (1.3) % Mandatory Transfers - 109,418 109,418 Non-Mandatory Transfers 926,167 1,557,302 (1,323,707) (2,881,009) (185.0) % Total Expenditures and Transfers $ 24,442,652 $ 23,210,352 $ 20,039,346 $ (3,171, 006) (13.7) % Fund Balance Addition/(Reduction) $ 97,310
PARKING Revenues $ 13,393,795 $ 15,597,149 $ 13,861,896 $ (1,735,253) (11.1) % Expenditures and Transfers Expenditures $ 7,681,650 $ 8,680,177 $ 7,272,826 $ (1,407,351) (16.2) % Mandatory Transfers 6,343,922 6,181,628 6,181,628 Non-Mandatory Transfers 17,929 735,344 407,442 (327,902) (44.6) % Total Expenditures and Transfers $ 14,043,501 $ 15,597,149 $ 13,861,896 $ (1,735, 253) (11.1) % Fund Balance Addition/(Reduction) $ (649,706)
ATHLETICS Revenues $ 135,913,904 $ 128,525,285 $ 89,581,899 $ (38,943,386) (30.3) % Expenditures and Transfers Expenditures $ 116,932,405 $ 115,478,587 $ 113,780,696 $ (1,697,891) (1.5) % Mandatory Transfers 17,965,239 11,648,158 8,248,158 (3,400,000) (29.2) % Non-Mandatory Transfers 1,300,142 1,398,540 (32,446,955) (33,845,495) (2,420.1) % Total Expenditures and Transfers $ 136,197,786 $ 128,525,285 $ 89,581,899 $ (38,943,386) (30.3) % Fund Balance Addition/(Reduction) $ (283,881)
OTHER Revenues $ 3,413,742 $ 2,745,249 $ 1,295,249 $ (1,450,000) (52.8) % Expenditures and Transfers Expenditures $ 2,962,332 $ 2,786,743 $ 2,323,048 $ (463,695) (16.6) % Mandatory Transfers 568,022 405,380 405,380 100.0 % Non-Mandatory Transfers 1,866,129 (41,494) (1,433,179) (1,391,685) -3353.9 % Total Expenditures and Transfers $ 5,396,483 $ 2,745,249 $ 1,295,249 $ (1,450, 000) (52.8) % Fund Balance Addition/(Reduction) $ (1,982,741)
TOTAL Revenues $ 253,541,204 $ 262,526,727 $ 208,552,002 $ (53,974,725) (20.6) % Expenditures and Transfers Expenditures $ 201,020,939 $ 202,078,763 $ 199,767,350 $ (2,311,413) (1.1) % Mandatory Transfers 54,855,089 44,022,452 47,548,245 3,525,793 8.0 % Non-Mandatory Transfers (393,435) 16,425,512 (38,813,593) (55,239,105) (336.3) % Total Expenditures and Transfers $ 255,482,593 $ 262,526,727 $ 208,502,002 $ (54,024,725) (20.6) % Fund Balance Addition/(Reduction) $ (1,941,388) $ 50,000 $ 50,000
B-15
44 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
University of Tennessee System FY 2020-21 Proposed Budget Summary 3 Athletics Unrestricted and Restricted Current Funds for Men's and Women's Athletics Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % KNOXVILLE Revenues General Funds Student Fees for Athletics $ 1,000,000 $ 1,000,000 $ 1,000,000 Ticket Sales 34,510,505 29,843,265 7,943,517 $ (21,899,748) -73.4% Gifts 28,440,721 28,170,000 19,170,000 (9,000,000) -31.9% Other 73,131,552 70,509,520 62,465,882 (8,043,638) -11.4% Total Revenues $ 137,082,778 $ 129,522,785 $ 90,579,399 $ (38,943,386) -30.1% Expenditures and Transfers Salaries and Benefits $ 51,701,359 $ 50,530,827 $ 50,530,827 Travel 9,679,527 10,552,051 8,026,560 $ (2,525,491) -23.9% Student Aid 14,626,990 17,260,977 18,730,977 1,470,000 8.5% Other Operating 40,846,541 37,132,232 36,489,832 (642,400) -1.7% Subtotal Expenditures $ 116,854,417 $ 115,476,087 $ 113,778,196 $ (1,697,891) -1.5% Debt Service Transfers 17,965,239 11,648,158 8,248,158 (3,400,000) -29.2% Other Transfers 2,300,142 2,398,540 (31,446,955) $ (33,845,495) -1411.1% Total Expenditures and Transfers $ 137,119,798 $ 129,522,785 $ 90,579,399 $ (38,943,386) -30.1%
Fund Balance Addition / (Reduction) $ (37,020)
CHATTANOOGA Revenues General Funds $ 8,136,011 $ 8,392,415 $ 8,561,415 $ 169,000 2.0% Student Fees for Athletics 5,581,229 5,334,663 5,334,663 Ticket Sales 771,296 870,023 (870,023) -100.0% Gifts 1,581,533 2,000,000 2,000,000 Other 2,025,201 1,945,000 1,215,023 (729,977) -37.5% Total Revenues $ 18,095,270 $ 18,542,101 $ 17,111,101 $ (1,431,000) -7.7% Expenditures and Transfers Salaries and Benefits $ 7,600,623 $ 7,452,529 $ 7,457,529 $ 5,000 0.1% Travel 1,088,463 1,369,082 1,076,891 (292,191) Student Aid 5,131,487 6,016,894 5,535,186 (481,708) -8.0% Other Operating 4,112,818 3,533,596 2,871,495 (662,101) -18.7% Subtotal Expenditures $ 17,933,391 $ 18,372,101 $ 16,941,101 $ (1,431,000) -7.8% Debt Service Transfers 161,879 170,000 170,000 Other Transfers Total Expenditures and Transfers $ 18,095,270 $ 18,542,101 $ 17,111,101 $ (1,431,000) -7.7% Fund Balance Addition / (Reduction)
MARTIN Revenues General Funds $ 6,620,151 $ 6,854,394 $ 6,904,314 $ 49,920 0.7% Student Fees for Athletics 2,215,905 2,212,000 2,212,000 0.0% Ticket Sales 155,255 140,000 140,000 0.0% Gifts 1,066,165 661,000 675,000 14,000 2.1% Other 2,153,028 1,698,686 1,897,336 198,650 11.7% Total Revenues $ 12,210,503 $ 11,566,080 $ 11,828,650 $ 262,570 2.3% Expenditures and Transfers Salaries and Benefits $ 4,550,795 $ 4,497,748 $ 4,466,056 $ (31,692) -0.7% Travel 879,614 470,238 624,189 153,951 32.7% Student Aid 4,527,700 4,784,039 4,807,738 23,699 0.5% Other Operating 2,136,162 1,697,825 1,814,437 116,612 6.9% Subtotal Expenditures $ 12,094,274 $ 11,449,850 $ 11,712,420 $ 262,570 2.3% Debt Service Transfers 116,230 116,230 116,230 Other Transfers Total Expenditures and Transfers $ 12,210,503 $ 11,566,080 $ 11,828,650 $ 262,570 2.3% Fund Balance Addition / (Reduction)
TOTAL ATHLETICS Revenues General Funds $ 14,756,162 $ 15,246,809 $ 15,465,729 $ 218,920 1.4% Student Fees for Athletics 8,797,134 8,546,663 8,546,663 Ticket Sales 35,437,056 30,853,288 8,083,517 (22,769,771) -73.8% Gifts 31,088,419 30,831,000 21,845,000 (8,986,000) -29.1% Other 77,309,781 74,153,206 65,578,241 (8,574,965) -11.6% Total Revenues $ 167,388,551 $ 159,630,966 $ 119,519,150 $ (40,111,816) -25.1% Expenditures and Transfers Salaries and Benefits $ 63,852,777 $ 62,481,104 $ 62,454,412 $ (26,692) 0.0% Travel 11,647,604 12,391,371 9,727,640 (2,663,731) -21.5% Student Aid 24,286,177 28,061,910 29,073,901 1,011,991 3.6% Other Operating 47,095,521 42,363,653 41,175,764 (1,187,889) -2.8% Subtotal Expenditures $ 146,882,080 $ 145,298,038 $ 142,431,717 $ (2,866,321) -2.0% Debt Service Transfers 18,243,348 11,934,388 8,534,388 Other Transfers 2,300,142 2,398,540 (31,446,955) Total Expenditures and Transfers $ 167,425,570 $ 159,630,966 $ 119,519,150 $ (2,866,321) -1.8% Fund Balance Addition / (Reduction) $ (37,019) Includes unrestricted and restricted funds. Other revenue sources include NCAA conference income, tournament income, program sales, concessions, parking, broadcasting, television, radio, internet, endowments, investments, royalties, advertisements, sponsorships, game guarantees, licensing fees, and sports camps.
B-16
45 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Natural Classifications Unrestricted Current Funds Expenditures
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Salaries and Benefits Salaries Academic $ 382,742,089 $ 381,290,311 $ 376,799,863 $ (4,490,448) (1.2) % Non-Academic 381,286,002 384,161,994 385,799,404 1,637,410 0.4 % Students 10,199,147 8,576,261 8,530,182 (46,079) (0.5) % Total Salaries $ 774,227,237 $ 774,028,566 $ 771,129,449 $ (2,899,117) (0.4) % Staff Benefits 268,283,433 270,360,957 272,303,319 1,942,362 0.7 % Total Salaries and Benefits $ 1,042,510,671 $ 1,044,389,523 $ 1,043,432,768 $ (956,755) (0.1) % Operating 406,709,009 468,995,050 579,122,372 110,127,322 23.5 % Equipment and Capital Outlay 35,101,910 23,622,302 24,160,006 537,704 2.3 % Total Expenditures $ 1,484,321,590 $ 1,537,006,875 $ 1,646,715,146 $ 109,708,271 7.1 %
AUXILIARIES Salaries and Benefits Salaries Academic $ 653,648 $ 697,044 $ 726,044 $ 29,000 4.2 % Non-Academic 61,735,628 62,072,446 61,603,682 $ (468,764) (0.8) % Students 4,596,451 5,350,955 5,219,601 (131,354) (2.5) % Total Salaries $ 66,985,726 $ 68,120,445 $ 67,549,327 $ (571,118) (0.8) % Staff Benefits 16,989,238 16,737,274 16,568,202 (169,072) (1.0) % Total Salaries and Benefits $ 83,974,964 $ 84,857,719 $ 84,117,529 $ (740,190) (0.9) % Operating 116,640,133 116,682,574 115,316,321 (1,366,253) (1.2) % Equipment and Capital Outlay 405,842 538,470 333,500 (204,970) (38.1) % Total Expenditures $ 201,020,939 $ 202,078,763 $ 199,767,350 $ (2,311,413) (1.1) %
TOTALS Salaries and Benefits Salaries Academic $ 383,395,737 $ 381,987,355 $ 377,525,907 $ (4,461,448) (1.2) % Non-Academic 443,021,629 446,234,440 447,403,086 1,168,646 0.3 % Students 14,795,597 13,927,216 13,749,783 (177,433) (1.3) % Total Salaries $ 841,212,964 $ 842,149,011 $ 838,678,776 $ (3,470,235) (0.4) % Staff Benefits 285,272,671 287,098,231 288,871,521 1,773,290 0.6 % Total Salaries and Benefits $ 1,126,485,635 $ 1,129,247,242 $ 1,127,550,297 $ (1,696,945) (0.2) % Operating 523,349,141 585,677,624 694,438,693 108,761,069 18.6 % Equipment and Capital Outlay 35,507,752 24,160,772 24,493,506 332,734 1.4 % Total Expenditures $ 1,685,342,529 $ 1,739,085,638 $ 1,846,482,496 $ 107,396,858 6.2 %
B-17
46 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget (RECURRING) Natural Classifications Unrestricted Current Funds Expenditures
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Salaries and Benefits Salaries Academic $ 382,742,089 $ 381,058,088 $ 381,728,446 $ 670,358 0.2 % Non-Academic 381,286,002 385,860,332 387,698,026 1,837,694 0.5 % Students 10,199,147 8,576,261 8,399,600 (176,661) (2.1) % Total Salaries $ 774,227,237 $ 775,494,681 $ 777,826,072 $ 2,331,391 0.3 % Staff Benefits 268,283,433 270,230,225 271,759,510 1,529,285 0.6 % Total Salaries and Benefits $ 1,042,510,671 $ 1,045,724,906 $ 1,049,585,582 $ 3,860,676 0.4 % Operating 406,709,009 451,979,604 467,627,786 15,648,182 3.5 % Equipment and Capital Outlay 35,101,910 25,916,554 25,965,926 49,372 0.2 % Total Expenditures $ 1,484,321,590 $ 1,523,621,064 $ 1,543,179,294 $ 19,558,230 1.3 %
AUXILIARIES Salaries and Benefits Salaries Academic $ 653,648 $ 697,044 $ 726,044 $ 29,000 4.2 % Non-Academic 61,735,628 62,072,446 61,603,682 $ (468,764) (0.8) % Students 4,596,451 5,350,955 5,219,601 (131,354) (2.5) % Total Salaries $ 66,985,726 $ 68,120,445 $ 67,549,327 $ (571,118) (0.8) % Staff Benefits 16,989,238 16,737,274 16,568,202 (169,072) (1.0) % Total Salaries and Benefits $ 83,974,964 $ 84,857,719 $ 84,117,529 $ (740,190) (0.9) % Operating 116,640,133 116,682,574 115,316,321 (1,366,253) (1.2) % Equipment and Capital Outlay 405,842 538,470 333,500 (204,970) (38.1) % Total Expenditures $ 201,020,939 $ 202,078,763 $ 199,767,350 $ (2,311,413) (1.1) %
TOTALS Salaries and Benefits Salaries Academic $ 383,395,737 $ 381,755,132 $ 382,454,490 $ 699,358 0.2 % Non-Academic 443,021,629 447,932,778 449,301,708 1,368,930 0.3 % Students 14,795,597 13,927,216 13,619,201 (308,015) (2.2) % Total Salaries $ 841,212,964 $ 843,615,126 $ 845,375,399 $ 1,760,273 0.2 % Staff Benefits 285,272,671 286,967,499 288,327,712 1,360,213 0.5 % Total Salaries and Benefits $ 1,126,485,635 $ 1,130,582,625 $ 1,133,703,111 $ 3,120,486 0.3 % Operating 523,349,141 568,662,178 582,944,107 14,281,929 2.5 % Equipment and Capital Outlay 35,507,752 26,455,024 26,299,426 (155,598) (0.6) % Total Expenditures $ 1,685,342,529 $ 1,725,699,827 $ 1,742,946,644 $ 17,246,817 1.0 %
B-18
47 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget (Recurring) Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 764,506,490 $ 737,846,711 $ 757,134,507 $ 19,287,796 2.6 % State Appropriations 639,918,152 629,597,952 630,232,352 634,400 0.1 % Grants & Contracts 53,256,325 45,940,594 47,499,044 1,558,450 3.4 % Sales & Service 56,898,631 60,882,793 61,078,759 195,966 0.3 % Other Sources 69,049,649 59,545,292 58,648,203 (897,089) (1.5) % Total Revenues $ 1,583,629,248 $ 1,533,813,342 $ 1,554,592,865 $ 20,779,523 1.4 %
Expenditures and Transfers Instruction $ 517,826,331 $ 566,624,958 $ 567,397,609 $ 772,651 0.1 % Research 147,846,046 130,090,400 131,598,388 1,507,988 1.2 % Public Service 77,459,911 83,123,609 83,569,501 445,892 0.5 % Academic Support 177,371,195 180,553,872 181,495,594 941,722 0.5 % Student Services 99,453,375 100,800,163 104,318,982 3,518,819 3.5 % Institutional Support 175,763,031 172,380,198 174,170,068 1,789,870 1.0 % Operation & Maintenance of Plant 158,633,657 157,000,671 157,676,700 676,029 0.4 % Scholarships & Fellowships 129,968,045 133,047,193 142,952,452 9,905,259 7.4 % Subtotal Expenditures $ 1,484,321,590 $ 1,523,621,064 $ 1,543,179,294 $ 19,558,230 1.3 % Mandatory Transfers 13,109,489 8,918,487 8,918,487 Non-Mandatory Transfers 79,126,450 (868,792) (236,895) 631,897 72.7 % Total Expenditures & Transfers $ 1,576,557,529 $ 1,531,670,759 $ 1,551,860,886 $ 20,190,127 1.3 % Fund Balance Addition/(Reduction) $ 7,071,719 $ 2,142,583 $ 2,731,979
AUXILIARIES Revenues $ 253,541,204 $ 262,526,727 $ 208,552,002 $ (53,974,725) ( 20.60) % Expenditures and Transfers Expenditures 201,020,939 202,078,763 199,767,350 (2,311,413) (1.1) % Mandatory Transfers 54,855,089 44,022,452 47,548,245 3,525,793 8.0 % Non-Mandatory Transfers (393,435) 16,425,512 (38,763,593) (55,189,105) (336.0) % Total Expenditures & Transfers $ 255,482,593 $ 262,526,727 $ 208,552,002 $ (53,974,725) ( 20.6) % Fund Balance Addition/(Reduction) $ (1,941,388)
TOTALS Revenues $ 1,837,170,452 $ 1,796,340,069 $ 1,763,144,867 $ (33,195,202) (1.8) % Expenditures and Transfers Expenditures $ 1,685,342,529 $ 1,725,699,827 $ 1,742,946,644 $ 17,246,817 1.0 % Mandatory Transfers 67,964,578 52,940,939 56,466,732 3,525,793 6.7 % Non-Mandatory Transfers 78,733,015 15,556,720 (39,000,488) (54,557,208) (350.7) % Total Expenditures & Transfers $ 1,832,040,122 $ 1,794,197,486 $ 1,760,412,888 $ (33,784,598) ( 1.9) % Fund Balance Addition/(Reduction) $ 5,130,330 $ 2,142,583 $ 2,731,979
B-19
48 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 University of Tennessee System FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 764,506,490 $ 737,846,711 $ 754,681,310 $ 16,834,599 2.3 % State Appropriations 639,918,152 630,641,552 631,093,152 451,600 0.1 % Grants & Contracts 53,256,325 45,940,594 47,499,044 1,558,450 3.4 % Sales & Service 56,898,631 60,882,793 59,467,883 (1,414,910) (2.3) % Other Sources 69,049,649 59,545,292 58,658,960 (886,332) (1.5) % Total Revenues $ 1,583,629,248 $ 1,534,856,942 $ 1,551,400,349 $ 16,543,407 1.1 %
Expenditures and Transfers Instruction $ 517,826,331 $ 570,308,488 $ 594,259,973 $ 23,951,485 4.2 % Research 147,846,046 131,117,132 176,348,978 45,231,846 34.5 % Public Service 77,459,911 83,717,359 87,327,025 3,609,666 4.3 % Academic Support 177,371,195 180,940,067 194,097,734 13,157,667 7.3 % Student Services 99,453,375 100,825,163 107,966,320 7,141,157 7.1 % Institutional Support 175,763,031 176,036,643 181,359,871 5,323,228 3.0 % Operation & Maintenance of Plant 158,633,657 155,367,360 156,497,015 1,129,655 0.7 % Scholarships & Fellowships 129,968,045 138,694,663 148,858,230 10,163,567 7.3 % Subtotal Expenditures $ 1,484,321,590 $ 1,537,006,875 $ 1,646,715,146 $ 109,708,271 7.1 % Mandatory Transfers 13,109,489 10,443,574 10,443,574 Non-Mandatory Transfers 79,126,450 (14,142,340) (107,140,419) (92,998,079) (657.6) % Total Expenditures & Transfers $ 1,576,557,529 $ 1,533,308,109 $ 1,550,018,301 $ 16,710,192 1.1 % Fund Balance Addition/(Reduction) $ 7,071,719 $ 1,548,833 $ 1,382,048
AUXILIARIES Revenues $ 253,541,204 $ 262,526,727 $ 208,552,002 $ (53,974,725) ( 20.60) % Expenditures and Transfers Expenditures 201,020,939 202,078,763 199,767,350 (2,311,413) (1.1) % Mandatory Transfers 54,855,089 44,022,452 47,548,245 3,525,793 8.0 % Non-Mandatory Transfers (393,435) 16,425,512 (38,813,593) (55,239,105) (336.3) % Total Expenditures & Transfers $ 255,482,593 $ 262,526,727 $ 208,502,002 $ (54,024,725) ( 20.6) % Fund Balance Addition/(Reduction) $ (1,941,388) $ 50,000
TOTALS Revenues $ 1,837,170,452 $ 1,797,383,669 $ 1,759,952,351 $ (37,431,318) (2.1) % Expenditures and Transfers Expenditures $ 1,685,342,529 $ 1,739,085,638 $ 1,846,482,496 $ 107,396,858 6.2 % Mandatory Transfers 67,964,578 54,466,026 57,991,819 3,525,793 6.5 % Non-Mandatory Transfers 78,733,015 2,283,172 (145,954,012) (148,237,184) (6,492.6) % Total Expenditures & Transfers $ 1,832,040,122 $ 1,795,834,836 $ 1,758,520,303 $ (37,314,533) ( 2.1) % Fund Balance Addition/(Reduction) $ 5,130,330 $ 1,548,833 $ 1,432,048
B-20
49 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Chattanooga FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 123,270,045 $ 121,188,927 $ 118,790,610 $ (2,398,317) (2.0) % State Appropriations 59,726,805 60,171,705 60,331,105 159,400 0.3 % Grants & Contracts 982,743 453,856 1,049,400 595,544 131.2 % Sales & Service 4,261,016 4,845,512 2,973,919 (1,871,593) (38.6) % Other Sources 186,651 269,500 269,500 Total Revenues $ 188,427,260 $ 186,929,500 $ 183,414,534 $ (3,514,966) (1.9) %
Expenditures and Transfers Instruction $ 75,466,590 $ 83,897,738 $ 82,297,071 $ (1,600,667) (1.9) % Research 4,893,521 4,675,717 5,299,685 623,968 13.3 % Public Service 2,165,901 2,764,616 2,820,618 56,002 2.0 % Academic Support 19,400,774 17,684,812 18,506,042 821,230 4.6 % Student Services 27,264,201 27,474,764 27,418,017 (56,747) (0.2) % Institutional Support 17,116,398 16,418,754 16,453,269 34,515 0.2 % Operation & Maintenance of Plant 19,457,009 19,159,504 19,223,094 63,590 0.3 % Scholarships & Fellowships 15,950,255 18,615,985 17,577,617 (1,038,368) (5.6) % Subtotal Expenditures $ 181,714,648 $ 190,691,890 $ 189,595,413 $ (1,096,477) (0.6) % Mandatory Transfers 3,101,633 3,438,000 3,438,000 Non-Mandatory Transfers 3,352,304 (7,200,390) (9,618,879) (2,418,489) (33.6) % Total Expenditures & Transfers $ 188,168,585 $ 186,929,500 $ 183,414,534 $ (3,514,966) (1.9) % Fund Balance Addition/(Reduction) $ 258,675
AUXILIARIES Revenues $ 19,704,098 $ 20,691,519 $ 21,063,659 $ 372,140 1.80 Expenditures and Transfers Expenditures 13,987,372 12,567,408 14,670,128 2,102,720 16.7 Mandatory Transfers 5,631,418 6,104,333 5,753,253 (351,080) (5.8) Non-Mandatory Transfers (1,364,486) 2,019,778 640,278 (1,379,500) (68.3) Total Expenditures & Transfers $ 18,254,304 $ 20,691,519 $ 21,063,659 $ 372,140 1.8 Fund Balance Addition/(Reduction) $ 1,449,794
TOTALS Revenues $ 208,131,358 $ 207,621,019 $ 204,478,193 $ (3,142,826) (1.5) % Expenditures and Transfers Expenditures $ 195,702,020 $ 203,259,298 $ 204,265,541 $ 1,006,243 0.5 % Mandatory Transfers 8,733,051 9,542,333 9,191,253 (351,080) (3.7) % Non-Mandatory Transfers 1,987,818 (5,180,612) (8,978,601) (3,797,989) (73.3) % Total Expenditures & Transfers $ 206,422,889 $ 207,621,019 $ 204,478,193 $ (3,142,826) (1.5) % Fund Balance Addition/(Reduction) $ 1,708,469
B-21
50 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Knoxville FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 475,332,006 $ 452,788,241 $ 472,611,737 $ 19,823,496 4.4 % State Appropriations 259,295,458 259,660,358 259,812,858 152,500 0.1 % Grants & Contracts 27,688,023 23,910,000 23,910,000 Sales & Service 7,187,080 5,164,937 5,329,970 165,033 3.2 % Other Sources 4,963,466 4,259,427 3,862,518 (396,909) (9.3) % Total Revenues $ 774,466,033 $ 745,782,963 $ 765,52 7,083 $ 19,744,120 2.6 %
Expenditures and Transfers Instruction $ 240,682,866 $ 263,052,990 $ 280,177,064 $ 17,124,074 6.5 % Research 83,388,002 75,922,913 105,281,202 29,358,289 38.7 % Public Service 7,080,032 4,806,912 7,785,273 2,978,361 62.0 % Academic Support 80,940,227 88,111,651 90,437,155 2,325,504 2.6 % Student Services 50,931,121 52,824,407 58,583,386 5,758,979 10.9 % Institutional Support 59,895,940 59,715,732 62,192,729 2,476,997 4.1 % Operation & Maintenance of Plant 82,451,840 85,329,737 86,322,029 992,292 1.2 % Scholarships & Fellowships 94,685,242 100,411,578 109,883,479 9,471,901 9.4 % Subtotal Expenditures $ 700,055,270 $ 730,175,920 $ 800,66 2,317 $ 70,486,397 9.7 % Mandatory Transfers 4,644,782 742,769 742,769 % Non-Mandatory Transfers 69,421,392 14,864,274 (35,878,003) (50,742,277) (341.4) % Total Expenditures & Transfers $ 774,121,444 $ 745,782,963 $ 765,52 7,083 $ 19,744,120 2.6 % Fund Balance Addition/(Reduction) $ 344,589
AUXILIARIES Revenues $ 223,977,828 $ 228,907,886 $ 174,444,872 $ (54,463,014) (23.80) % Expenditures and Transfers Expenditures 181,227,600 180,292,394 175,762,112 (4,530,282) (2.5) % Mandatory Transfers 46,348,006 34,875,449 38,752,322 3,876,873 11.1 % Non-Mandatory Transfers (189,926) 13,740,043 (40,069,562) (53,809,605) (391.6) % Total Expenditures & Transfers $ 227,385,680 $ 228,907,886 $ 174,44 4,872 $ (54,463,014) (23.8) % Fund Balance Addition/(Reduction) $ (3,407,852)
TOTALS Revenues $ 998,443,860 $ 974,690,849 $ 939,971,955 $ (34,718,894) (3.6) % Expenditures and Transfers Expenditures $ 880,885,892 $ 910,468,314 $ 976,424,429 $ 65,956,115 7.2 % Mandatory Transfers 50,992,788 35,618,218 39,495,091 3,876,873 10.9 % Non-Mandatory Transfers 69,628,444 28,604,317 (75,947,565) (104,551,882) (365.5) % Total Expenditures & Transfers $ 1,001,507,124 $ 974,690,849 $ 939,97 1,955 $ (34,718,894) (3.6) % Fund Balance Addition/(Reduction) $ (3,063,263)
Knoxville includes UT Knoxville and the UT Space Institute.
B-22
51 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Martin FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 64,169,862 $ 62,661,462 $ 62,206,062 $ (455,400) (0.7) % State Appropriations 36,452,197 35,419,197 35,369,397 (49,800) (0.1) % Grants & Contracts 140,331 241,400 241,400 Sales & Service 3,364,355 3,577,096 3,672,746 95,650 2.7 % Other Sources 592,488 796,976 796,476 (500) (0.1) % Total Revenues $ 104,719,232 $ 102,696,131 $ 102 ,286,081 $ (410,050) (0 .4) %
Expenditures and Transfers Instruction $ 42,500,003 $ 44,824,222 $ 45,765,352 $ 941,130 2.1 % Research 165,779 181,451 181,351 (100) (0.1) % Public Service 508,440 817,525 837,636 20,111 2.5 % Academic Support 9,320,666 10,915,267 11,164,072 248,805 2.3 % Student Services 14,280,320 13,642,616 14,357,381 714,765 5.2 % Institutional Support 6,909,730 7,361,923 7,710,697 348,774 4.7 % Operation & Maintenance of Plant 10,634,144 11,001,859 11,037,851 35,992 0.3 % Scholarships & Fellowships 14,024,165 12,407,954 13,656,234 1,248,280 10.1 % Subtotal Expenditures $ 98,343,249 $ 101,152,817 $ 104 ,710,574 $ 3,557,757 3.5 % Mandatory Transfers 552,276 553,053 553,053 Non-Mandatory Transfers 3,125,498 990,261 (2,977,546) (3,967,807) (400.7) % Total Expenditures & Transfers $ 102,021,023 $ 102,696,131 $ 102 ,286,081 $ (410,050) (0 .4) % Fund Balance Addition/(Reduction) $ 2,698,209
AUXILIARIES Revenues $ 8,299,456 $ 10,124,296 $ 10,124,296 Expenditures and Transfers Expenditures $ 4,222,230 $ 6,786,435 $ 6,786,435 Mandatory Transfers 2,659,769 2,672,170 2,672,170 Non-Mandatory Transfers 1,385,784 665,691 665,691 Total Expenditures & Transfers $ 8,267,783 $ 10,124,296 $ 10, 124,296 Fund Balance Addition/(Reduction) $ 31,672
TOTALS Revenues $ 113,018,688 $ 112,820,427 $ 112,410,377 $ (410,050) (0.4) % Expenditures and Transfers Expenditures 102,565,480 107,939,252 111,497,009 3,557,757 3.3 % Mandatory Transfers 3,212,045 3,225,223 3,225,223 Non-Mandatory Transfers 4,511,282 1,655,952 (2,311,855) (3,967,807) (239.6) % Total Expenditures & Transfers $ 110,288,807 $ 112,820,427 $ 112 ,410,377 $ (410,050) (0 .4) % Fund Balance Addition/(Reduction) $ 2,729,881
B-23
52 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Health Science Center FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 89,167,128 $ 88,472,873 $ 88,472,873 State Appropriations 162,456,024 163,011,624 163,202,524 $ 190,900 0.1 % Grants & Contracts 19,070,639 16,896,662 16,896,662 Sales & Service 16,083,854 19,360,419 19,404,781 44,362 0.2 % Other Sources 2,736,290 1,071,920 1,071,920 Total Revenues $ 289,513,934 $ 288,813,498 $ 289,048,760 $ 235,262 0.1 %
Expenditures and Transfers Instruction $ 123,468,531 $ 137,851,621 $ 146,579,955 $ 8,728,334 6.3 % Research 18,145,488 8,126,446 22,135,629 14,009,183 172.4 % Public Service 211,138 329,340 761,983 432,643 131.4 % Academic Support 57,402,868 54,669,180 64,092,349 9,423,169 17.2 % Student Services 6,977,734 6,883,376 7,607,536 724,160 10.5 % Institutional Support 33,527,962 29,297,464 32,102,062 2,804,598 9.6 % Operation & Maintenance of Plant 42,443,125 34,097,888 34,098,324 436 - % Scholarships & Fellowships 5,220,196 7,160,831 7,617,357 456,526 6.4 % Subtotal Expenditures $ 287,397,041 $ 278,416,146 $ 314,995,195 $ 36,579,049 13.1 % Mandatory Transfers 4,674,404 5,579,752 5,579,752 Non-Mandatory Transfers (2,221,403) 4,817,600 (31,476,187) (36,293,787) (753.4) % Total Expenditures & Transfers $ 289,850,042 $ 288,813,498 $ 289,098,760 $ 285,262 0.1 % Fund Balance Addition/(Reduction) $ (336,109) $ (50,000)
AUXILIARIES Revenues $ 1,559,823 $ 2,803,026 $ 2,919,175 $ 116,149 4.10 % Expenditures and Transfers Expenditures 1,583,737 2,432,526 2,548,675 116,149 4.8 % Mandatory Transfers 215,896 370,500 370,500 Non-Mandatory Transfers (224,807) (50,000) (50,000) Total Expenditures & Transfers $ 1,574,826 $ 2,803,026 $ 2,869,175 $ 66, 149 2.4 % Fund Balance Addition/(Reduction) $ (15,002) $ 50,000
TOTALS Revenues $ 291,073,757 $ 291,616,524 $ 291,967,935 $ 351,411 0.1 % Expenditures and Transfers Expenditures $ 288,980,778 $ 280,848,672 $ 317,543,870 $ 36,695,198 13.1 % Mandatory Transfers 4,890,300 5,950,252 5,950,252 Non-Mandatory Transfers (2,446,210) 4,817,600 (31,526,187) (36,343,787) (754.4) % Total Expenditures & Transfers $ 291,424,868 $ 291,616,524 $ 291,967,935 $ 351,411 0.1 % Fund Balance Addition/(Reduction) $ (351,111)
B-24
53 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Institute of Agriculture FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees $ 12,567,450 $ 12,735,208 $ 12,600,028 $ (135,180) (1.1) % State Appropriations 92,111,664 92,419,664 92,419,764 100 - % Grants & Contracts 5,198,463 4,350,205 4,350,205 Sales & Service 26,002,327 27,934,829 28,086,467 151,638 0.5 % Other Sources 18,082,169 16,577,181 16,869,948 292,767 1.8 % Total Revenues $ 153,962,074 $ 154,017,087 $ 154, 326,412 $ 309,325 0.2 %
Expenditures and Transfers Instruction $ 35,708,342 $ 40,681,917 $ 39,440,531 $ (1,241,386) (3.1) % Research 41,253,256 42,210,605 43,451,111 1,240,506 2.9 % Public Service 45,721,372 51,702,756 52,050,749 347,993 0.7 % Academic Support 10,049,635 9,302,757 9,641,716 338,959 3.6 % Student Services Institutional Support 2,834,153 2,747,198 2,747,273 75 - % Operation & Maintenance of Plant 3,647,538 3,778,372 3,815,717 37,345 1.0 % Scholarships & Fellowships 88,187 98,315 123,543 25,228 25.7 Subtotal Expenditures $ 139,302,483 $ 150,521,920 $ 151, 270,640 $ 748,720 0.5 % Mandatory Transfers Non-Mandatory Transfers 14,138,361 1,872,600 1,488,203 (384,397) (20.5) % Total Expenditures & Transfers $ 153,440,844 $ 152,394,520 $ 152, 758,843 $ 364,323 0.2 % Fund Balance Addition/(Reduction) $ 521,230 $ 1,622,567 $ 1,567,569
B-25
54 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 Institute for Public Service FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees State Appropriations $ 13,766,087 $ 13,792,987 $ 13,815,487 $ 22,500 0.2 % Grants & Contracts 176,126 88,471 1,051,377 962,906 1,088.4 % Sales & Service Other Sources 11,832,137 12,293,658 11,511,968 (781,690) (6.4) % Total Revenues $ 25,774,349 $ 26,175,116 $ 26,3 78,832 $ 203,716 0.8 %
Expenditures and Transfers Instruction Research Public Service $ 21,773,027 $ 23,296,210 $ 23,070,766 $ (225,444) (1.0) % Academic Support 257,024 256,400 256,400 % Student Services Institutional Support 721,177 7 55,665 7 52,165 (3,500) (0.5) % Operation & Maintenance of Plant Scholarships & Fellowships Subtotal Expenditures $ 22,751,228 $ 24,308,275 $ 24,0 79,331 $ (228,944) (0.9) % Mandatory Transfers Non-Mandatory Transfers 3,061,659 2,060,345 2,220,345 160,000 7.8 % Total Expenditures & Transfers $ 25,812,887 $ 26,368,620 $ 26,2 99,676 $ (68,944) (0.3) % Fund Balance Addition/(Reduction) $ (38,538) $ (193,504) $ 79,156
B-26
55 2021 - Finance and Administration Committee - Revised FY 2020-21 Operating Budget - Roll Call Vote/Action
3 System Administration FY 2020-21 Revised Budget Unrestricted Current Funds Revenues, Expenditures, and Transfers
Change FY 2019-20 FY 2020-21 FY 2020-21 Original to Revised Actual Original Revised Amount % EDUCATIONAL AND GENERAL Revenues Tuition & Fees State Appropriations $ 16,109,917 $ 6,166,017 $ 6,142,017 $ (24,000) (0.4) % Grants & Contracts Sales & Service Other Sources 30,656,449 24,276,630 24,276,630 Total Revenues $ 46,766,366 $ 30,442,647 $ 30,418,647 $ (24,000) (0.1) %
Expenditures and Transfers Instruction Research Public Service Academic Support Student Services Institutional Support $ 54,757,671 $ 59,739,907 $ 59,401,676 $ (338,231) (0.6) % Operation & Maintenance of Plant 2,000,000 2,000,000 Scholarships & Fellowships Subtotal Expenditures $ 54,757,671 $ 61,739,907 $ 61,401,676 $ (338,231) (0.5) % Mandatory Transfers 136,394 130,000 130,000 Non-Mandatory Transfers (11,751,361) (31,547,030) (30,898,352) 648,678 2.1 % Total Expenditures & Transfers $ 43,142,704 $ 30,322,877 $ 30,633,324 $ 310,447 1.0 % Fund Balance Addition/(Reduction) $ 3,623,662 $ 119,770 $ (214,677)
B-27
56 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: Annual Report on Finances of the Intercollegiate Athletics Programs
Type: Information
Presenter: David Miller, Senior Vice President and Chief Financial Officer
The Board policy on Oversight of Intercollegiate Athletics outlines three major annual reports to be provided by the athletics departments through the Chancellors to the appropriate Board committees. Oral presentations are required to be provided to the appropriate Board committees by the System staff.
The following reports fulfill the requirement that annually at the Winter Meeting of the Board, each campus with an intercollegiate athletics program must provide a written report to the Finance and Administration Committee, through the Senior Vice President and Chief Financial Officer, to ensure that the Board receives information sufficient to understand and monitor financial performance. The policy contains specific information to be included in the reports.
1. Information on the current annual operating budget and most recent annual operating budget performance for intercollegiate athletics, including without limitation: a) Amounts and sources of generated revenue (e.g., ticket sales, donor contributions, NCAA/conference distributions, corporate sponsorships, licensing, etc.) and institutional funding (institutional or government support, student fees); b) Amounts and uses of funds by expenditure type (e.g., salaries and benefits, scholarships, facilities, debt service, team travel, etc.); and c) A description of how deficits, if anticipated or otherwise, will be handled by the institution. 2. Athletics department’s most recent fiscal year-end unrestricted fund balances;
57 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
3. The amount of the athletics fee, or any similarly termed student fee designated for athletics, at the institution, if applicable, for the most recent five fiscal years; 4 4. The capital master plan for athletics facilities and any associated financing activities; 5. Total debt outstanding and annual debt service requirements on athletics facilities; 6. Projected amount of annual compensation, excluding performance bonuses for the next five years of all coaches with whom the University has employment agreements, and the length of the term of the employment agreements; and 7. Future material financial considerations and trends.
Selected Highlights
UTC UTK UTM FY2020 Operating Budget $18,095,270 $136,807801 $12,741,982
FY20 Year-end $0 $10,603,851 $1,335,591 Unrestricted Fund Balance
FY20 Student Fees for $514 per student per In FY20 $1,000,000 $408 per student Athletics year was allocated from per year the Student Program and Service Fee $5,581,229 Revenue $1,955,502 Revenue (SPSF) Outstanding Debt $1,142,567 $101,740,915 $1,357,410
FY20 Debt Service $161,879 $17,965,239 $117,088 Budget FY21 $11,648,158
58 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Office of the Chancellor Dept5605 615 McCallie Avenue Chattanooga, TN 37403 Phone: (423) 425-4141 4 E-mail: [email protected]
TO: Mr. David L. Miller
FROM: Dr. Steven R. Angle
DATE: Januarv 31, 2021
RE: UTC Athletics Department Annual Report to the UT Board of Trustees
In response to the University of Tennessee Board of Trustees Policy on Oversight of Intercollegiate Athletics, the information below is the University of Tennessee at Chattanooga's annual Athletics financial report to the Finance and Administration Committee.
ATHLETICS DEPARTMENT FY 2020 ACTUALS& FY 2021 REVISED BUDGET
Actual 2019-20 Revised 2020-21 Unrestricted Restricted Tot11l Unrestricted Restricted Total ATHLETICS Revenues
General Funds $ 8,136,011 s 8,136,011 s 8,561,415 $ 8,561,415 Student Fees
Athletic Fees 5,581,229 5,581,229 5,334,663 5,334,663 Ticket Sales 771,296 771,296 - NCAA Conference, Tournaments 389,280 389,280 125,000 125.000 Game Guarantees 677,293 677,293 45S,DOO 455,000 Gifts 1,581,533 1,581,533 - 2,000,000 2,000,000 Licensing Fees 47,183 47,183 50,000 50,000 Sports Camps 268,943 268,943 262,500 262,500 other * 642.502 642.502 322,523 322 523 Total Revenues s 16.513 737 $ 1.581 533 s 18 095 270 S 15111.101 s 2 000 000 S 17111101 Expenditures and Transfers
Salaries s 5,816,705 $ 21.728 s 5,838,433 s 5,657,529 $ $ 5,657,529 Employee Benefits 1.760 427 1.763 1,762.190 1,800,00 1.800.000 Total Salaries andBenefits . s 7,577,132 $ 23,491 $ 7,800,6623 $ 7.457,529 $ - $ 7,457.529 Travel 1,016,550 69,913 1.088,463 676,891 400,000 1,076,891 StudentAid 4,757,505 373,982 5,131,487 5.235,186 300,000 5.535,186 Equipment 18,078 - 18,078 - Other Operating 2 980,593 1,114,147 4,094,740 1,571,495 1,300,000 2,871,495 Subtotal Expendlures $ 16,351,858 $ 1,581,533 s 17,933,391 $ 14,941,101 $ 2,000,000 s 16,941,101 DebtService 161,679 161,879 170,000 170,000 other Transfers
Total Expendtures and Transfers $ 16 513.737 $ 1,581,533 $ 18 095270 $ 15111101 5 2,000,000 $ 17111.101 Revenues LessExpendltures s $ $ s - $ - s
The University of Tennessee at Chattanooga is a comprehensive, community-engaged campus of the University of Tennessee
59 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
UNRESTRICTED FUND BALANCE 4
The Athletics Department does not have an unrestricted fund balance. All unrestricted revenue realized by the department has been expended.
ATHLETICS FEE
The University assesses students an Athletics Fee in the amount of $514 annually. In FY 2021, the fee is expected to generate $5.33 million. The fee makes up approximately 30% of the revenue generated by the Athletics Department.
Actuals Budget Athletics Fee FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Annual Fee Amount $480 $480 $480 $514 $514 Revenue Collected $4,549,281 $4,477,571 $4,472,079 $5,581,229 $5,334,663
CAPITAL MASTER PLAN
The University of Tennessee Board of Trustees and the Tennessee Higher Education Commission approved the University's current master plan in 2012. The University will begin the process to develop a new master plan later this calendar year. Future capital planning for Athletic spaces were addressed as part of the 2012 plan. Items of focus included the following:
Project Status Explanation The existing football practice field was completely Football Practice Facility Partially Completed renovated in 2019 with new turf and equipment. A new tennis facility was completed in 2018 Tennis Facility Completed adjacent to McKenzie Arena with six courts, locker rooms, and office space. The Engel Intramural Complex was completed in Intramural/Soccer Facility Partially Completed 2018 providing a new field for women's soccer. The Engel Intramural Complex was completed in Volleyball/Wrestling Gym Partially Completed 2018 providing a new court for women's sand volleyball. This project is being incorporated into the Athletics Office/Support In Progress McKenzie Arena Addition project. With an expected completion in 2022, this project will create enhanced football facilities, basketball locker rooms, team meeting rooms, and a new training room. In addition, parts of the Arena will McKenzie Arena Addition In Progress be renovated to enhance both student athlete and non-athlete student experiences in the facility. The facility will have team rooms that can be converted to general classrooms and a large multi-purpose room that can serve various campus needs.
UTC Athletics 2
60 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
DEBT OUTSTANDING 4
The Athletics Department has the following one project with outstanding debt:
Debt Outstanding Bonded Project Annual Payment Maturity as of 6/30/20 Finley Stadium $1,142,567 $161,879 FY 2028 Total $1,142,567 $161,879
There is a recurring expense budget dedicated to paying the annual debt service obligation for this project.
COACHES COMPENSATION
The Athletics Department has employment agreements with the following three head coaches for men's basketball, football, and women's basketball:
Projected Annual Compensation Coach Excluding Performance Bonuses Contract Dates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Lamont Paris 04/01/2017- Head Coach $306,000 $306,000 $306,000 $306,000 $102,000 04/30/2023; Men's BB +2 04/30/2025 Russell Wright 12/19/2018- Head Coach $251,000 $251,000 $251,000 $251,000 $0 12/31/2023; Football +112/31/24 Katherine Burrows 05/25/18- Head Coach $150,000 $150,000 $75,000 $0 $0 06/30/2023 Women's BB
Total $707,000 $707,000 $632,000 $557,000 $102,000
FUTURE MATERIAL FINANCIAL CONSIDERATIONS & TRENDS
The current pandemic environment has significantly reduced revenue sources including ticket sales, marketing and advertising contracts, donor support and game guarantees in addition to other national trends. Athletics continues to be financially reliant on institutional support and student fees; although given the current state of our external funding, athletics will be more dependent on these resources until some normalcy returns. The construction surrounding McKenzie Arena is now anticipated to begin in the Spring of 2021. This will cause interruption for events and potentially fund raising support.
UTC Athletics 3
61 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 UNIVERSITY OF TENNESSEE ATHLETICS
62 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 TABLE OF CONTENTS
I. Operating Results & Budget II. Unrestricted Fund Balances III. Student Fees IV. Capital Projects V. Debt Profile VI. Coaches Contracts VII. Financial Considerations & Trends
63 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 OPERATING RESULTS & BUDGET
Operating Revenues
Actuals Prelim Budget Adjusted Budget Variance FY19-20 FY20-21 FY20-21 $ % SEC/NCAA Distributions $ 46,050,131 $ 46,825,756 $ 43,375,000 $ (2,675,131) -5.8% Ticket Sales (net of taxes) 34,753,458 29,843,265 7,943,516 (26,809,942) (a) -77.1% Annual Giving & Endowment Earnings 28,002,904 28,000,000 19,000,000 (9,002,904) -32.1% Multi-Media Rights & Sponsorships 12,657,354 11,335,000 10,201,500 (2,455,854) -19.4% Event Revenues 6,227,616 6,274,000 3,307,000 (2,920,616) -46.9% Trademark Licensing Royalties 2,208,500 1,600,000 3,800,000 1,591,500 (b) 72.1% Football Bowl Game 1,313,316 1,460,000 - (1,313,316) 0.0% Other Revenues 5,027,666 3,924,764 2,692,382 (2,335,284) -46.4% Total Operating Revenues $ 136,240,945 $ 129,262,785 $ 90,319,398 $ (45,921,547) -33.7%
(a) - Decrease directly attributed to the adverse impacts of COVID-19 on event-based revenues. (b) - Increase due to upfront signing bonuses affiliated with new exclusive mid-tier merchandise agreements.
64 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 OPERATING RESULTS & BUDGET
Operating Expenditures & Transfers Actuals Prelim Budget Adjusted Budget Variance FY19-20 FY20-21 FY20-21 $ % Compensation & Benefits $ 52,811,780 $ 52,574,367 $ 49,989,704 $ (2,822,076) (a) -5.3% Sport Teams (travel, recruiting, operations ) 17,876,052 18,156,897 16,893,026 (983,026) -5.5% Debt Service (net of applying capital gifts) 16,887,239 11,648,156 8,248,156 (8,639,083) (b) -51.2% Scholarships 14,150,001 16,111,629 17,611,629 3,461,628 24.5% Facilities 10,492,025 8,417,961 5,029,661 (5,462,364) (c) -52.1% External Relations 4,804,049 4,784,696 4,190,696 (613,353) -12.8% Event Management 6,773,872 5,365,459 4,698,459 (2,075,413) -30.6% Student-Athlete Welfare 4,556,207 4,245,921 6,453,921 1,897,714 41.7% Other Expenditures 7,378,576 6,879,699 4,386,979 (2,991,597) -40.5% Campus - Debt Service (Parking Garages) 1,078,000 1,078,000 1,078,000 - 0.0% Total Expenditures & Transfers $ 136,807,801 $ 129,262,785 $ 118,580,231 $ (18,227,570) -13.3%
(a) - Decrease primarily related to the implementation of a temporary departmental salary reduction plan. (b) - Decrease due to the expiration of a debt series in addition to an increase in the use of accrued capitial gifts towards debt service. (c) - Decrease attributed to lower deferred maintenance expenses coupled with an increase in the application of accrued facility gifts towards expenses.
65 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 OPERATING RESULTS & BUDGET
Total Revenues Over Total Expenditures
Actuals Prelim Budget Adjusted Budget FY19-20 FY20-21 FY20-21 $ % Total Operating Revenues $ 136,240,945 $ 129,262,785 $ 90,319,398 $ (45,921,547) -33.7%
Total Expenditures & Transfers $ 136,807,801 $ 129,262,785 $ 118,580,231 $ (18,227,570) -13.3%
Net Operating Surplus / (Deficit) $ (566,856) (a) $ - $ (28,260,833) (b)
(a) Net Operating Deficit at FYE19-20 was funded through the department’s auxiliary fund balance (i.e., unrestricted reserves). (b) Projected Net Operating Deficit for FY20-21 to be funded through a mixture of institutional support, athletic conference distributions, and additional expenditure reductions.
66 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 UNRESTRICTED FUND BALANCES
Fund Balances @ Year-End
6/30/2019 6/30/2020 Fund Type Entity Balance Balance A019900002 Auxiliary Fund Balance UTK $ 4,843,600 $ 5,135,773 (a) K010005038 Renewal & Replacement UTK 2,003,339 2,002,672 S010021045 Strategic Reserve UTFI 3,440,406 3,465,406 Total Unrestricted Fund Balance $ 10,287,345 $ 10,603,851
(a) - Balance is net of year-end working capital adjustment of $1.3M and $0.7M for FY19 and FY20, respectively.
67 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 STUDENT FEES
Historical Summary
• UTK-Athletics has received $1.0M per year from FY15-16 through FY19-20.
• The funding originates from the Student Program and Services Fee (SPSF) and has not been subject to annual increases and/or pegged to regular SPSF fee increases.
• The funding was based on supporting Title IX efforts associated with women’s athletics programs. Additionally, athletics has provided complimentary access to all sporting events for students except for home football games in which students have received a significantly reduced admission rate of $10/ticket.
• Typically half of the other 12 SEC athletics departments at public institutions receive in excess of $1.0M per year in some form of student fee support.
68 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 CAPITAL PROJECTS
Facilities Master Plan
• The Department of Athletics has engaged global sports architecture firm, Populous, and the parties are completing a comprehensive athletic facilities master plan which will align with the campus facilities master plan.
• The athletics master plan process commenced in January 2020 and is targeted for completion in 2021. The athletics master plan will integrate and inform the overall campus master plan currently scheduled for update within the next year.
• The deliverable(s) will serve as a planning tool for future facility development including the areas of feasibility, prioritization, cost estimation, and fundraising.
69 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 CAPITAL PROJECTS
Projects In Progress Summary
Name Cost Status Neyland Stadium Renovations $ 180,000,000 (a) Design Development Haslam Football Fields Phase II $ 21,600,000 (b) Schematic Design
(a) - Approved funding plan includes up to $109M in bond financing ($80M/20-yr; $29M/10-yr). (b) - Project to be fully funded through private charitable giving utilizing up to $5.0M in short-term financing.
70 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 CAPITAL PROJECTS
Neyland Stadium Renovations ➢ No short-term impact on operating budget
➢ Prioritized remaining scope into the following categories by date: ▪ 2019 – new 360 LED ribbon board ▪ 2020 – new sound system ▪ 2022 – new north videoboard and lower west seating deck ▪ 2025 or later – completion of south endzone renovation
➢ In December 2020, elected to proceed as follows: ▪ Complete full design of 2022 items ▪ Finish design development phase on south endzone renovation
➢ Scope for 2020-2022 will not require borrowing (i.e., donor funded)
➢ Full completion of south endzone renovation will require long-term borrowing funded by the operating budget at approximately ~$7.7M/yr.
10
71 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 DEBT PROFILE
Outstanding Principal by Facility
Balance as of Facility 7/1/20 Neyland Stadium $ 40,250,876 Anderson Training Center 24,722,688 Jones Aquatic Center 13,504,542 Thompson-Boling Arena 12,629,408 Sherri Parker Lee Stadium 3,686,353 Lindsey Nelson Stadium 2,800,461 Regal Soccer Stadium 2,386,611 Thornton Athletics Student Life Center 1,378,503 Siler Bean Warehouse 381,474 Total Balance $ 101,740,915
72 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 DEBT PROFILE
Principal Balance by Facility
$100M
$10.6M
$80M $12.6M Other Facilities
$13.5M Thompson-Boling Arena $60M Jones Aquatic Center $24.7M Anderson Training Center $40M Neyland Stadium
$20M $40.3M
$M
73 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 DEBT PROFILE
Gross Annual Debt Service by Facility
74 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 COACHES CONTRACTS Football
Annual Salary as of February (b) Coach (a) Title Expiration Date 2021 2022 2023 2024 2025 2026 Heupel Head Coach January 31, 2027$ 4,000,000 $ 4,000,000 4,000,000$ 4,000,000$ $ 4,000,000 $ 4,000,000 Banks Defensive Cordinator January 31, 2024$ 1,300,000 $ 1,400,000 1,500,000$ Golesh Offensive Coordinator January 31, 2024$ 750,000 $ 750,000 750,000$ Elarbee Assistant Coach January 31, 2023$ 750,000 $ 750,000 Garner Assistant Coach January 31, 2023$ 550,000 $ 625,000 Steele Assistant Coach February 28, 2023$ 450,000 $ 450,000 Mack Assistant Coach January 31, 2023$ 400,000 $ 400,000 Burns Assistant Coach February 28, 2023$ 300,000 $ 450,000 Schmidt Director of Competition Development January 31, 2023$ 375,000 $ 375,000 Artis Director of FB Sports Performance January 31, 2022$ 200,000
(a) - Information disclosed as of February 16, 2021. (b) - Annual Salary represents the aggregate amount of Base Pay and Supplemental Pay per employment contract.
75 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 COACHES CONTRACTS
Olympic/Other Sports Annual Salary as of Feb. 1 (b) Head Coach (a) Sport Expiration Date 2021 (c) 2022 2023 2024 Vitello Baseball June 30, 2024 $ 550,000 $ 625,000 $ 650,000 $ 650,000 Barnes Men's Basketball April 15, 2024 $ 4,690,000 $ 5,200,000 $ 5,450,000 $ 5,700,000 Harper Women's Basketball April 15, 2024 $ 685,000 $ 750,000 $ 750,000 $ 750,000 Webb Men's Golf June 30, 2023 $ 172,000 $ 180,000 $ 180,000 Pavon Women's Golf June 30, 2021 $ 135,500 Glenn Rowing June 30, 2021 $ 135,500 Pensky Soccer January 31, 2024 $ 185,500 $ 195,000 $ 195,000 Weekly, R. Softball June 30, 2022 $ 229,150 $ 243,500 Weekly, K. Softball June 30, 2022 $ 229,150 $ 243,500 Alford-Sullivan Track & Field/XC June 30, 2022 $ 271,000 $ 300,000 Kredich Swimming & Diving April 30, 2024$ 205,300 $ 217,000 $ 217,000 $ 217,000 Woodruff Men's Tennis June 30, 2024$ 163,000 $ 170,000 $ 180,000 $ 180,000 Ojeda Women's Tennis June 30, 2024$ 149,500 $ 160,000 $ 160,000 $ 160,000 Rackham Volleyball January 31, 2023$ 185,500 $ 205,000 $ 210,000 $ 215,000
(a) - Information disclosed as of February 16, 2021. (b) - Annual Salary represents the aggregate amount of Base Pay and Supplemental Pay per employment contract. (c) - Annual Salary reflects decrease from current Athletics Salary Reduction Plan.
76 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
4 FINANCIAL CONSIDERATIONS & TRENDS
Key Future Material Items
• Lingering impact from COVID-19 pandemic on event-based revenues • Legislative outcomes from antitrust lawsuits pending vs. NCAA • Incremental revenue from ESPN/SEC television agreement (FY24-25) • Potential naming rights and recognition opportunities within or around venues • Prospective ticket reseating/repricing programs for stadium and arena
77 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
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UT Martin Athletics
Annual Report to The Finance & Administration Committee
Written By:
Kurt McGuffin Danelle Fabianich Ashley Bynum
Spring 2021
78 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Table of Contents 4 Annual Report to the Finance and Administration Committees ...... 4 Statement of Revenues & Expenses ...... 3 Revenues ...... 4 Expenditures ...... 5 Unrestricted Fund Balances ...... 6 Total Debt Outstanding ...... 8 UT Martin Coaches with Contracts Projected Annual Compensation ...... 8 Future Financial Considerations & Trends ...... 9
79 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
UNIVERSITY OF TENNESSEE AT MARTIN DEPARTMENT OF INTERCOLLEGIATE ATHLETICS STATEMENT OF REVENUES AND EXPENSES 4
2019-2020 2019-2020 2020-2021 Budget Actuals Budget TOTAL TOTAL TOTAL Revenues Operating revenues: 1 Ticket sales $ 160,000.00 155,254.50 140,000.00 2 Direct state or other government support - - - 3 Student fees 2,050,250.00 2,215,904.75 2,212,000.00 4 Direct institutional support 6,603,885.00 6,468,963.40 6,934,616.00 5 Less-Transfers to Institution - - - 6 Indirect Institutional Support - - - 6a Indirect Institutional Support-Athletic Facilities Debt Service 888,200.00 316,673.62 116,230.00 7 Guarantees 1,336,000.00 1,319,147.55 768,180.00 8 Contributions 900,000.00 565,123.21 675,000.00 9 In Kind 200,000.00 702,332.97 200,000.00 10 Compensation and benefits provided by a third-party - - - 11 Media Rights 60,000.00 72,909.79 60,000.00 12 NCAA Distributions 735,000.00 372,675.65 647,646.00 13 Conference Distributions 75,000.00 101,333.33 75,000.00 14 Program, novelty, parking and concessions sales 150,000.00 119,417.32 150,000.00 15 Royalties, licensing, advertisements, and sponsorships 260,000.00 241,428.63 260,000.00 16 Sports camp revenues - - - 17 Endowment and investment income 125,000.00 90,817.68 100,000.00 18 Other - - - 19 Bowl Revenues - - - Subtotal operating revenue 13,543,335.00 12,741,982.40 12,338,672.00
Expenses Operating expenses: 20 Athletics student aid 4,406,571.00 4,496,694.40 4,500,000.00 21 Guarantees 20,000.00 9,901.97 5,000.00 22 Coaching salaries, benefits, and bonuses paid by the university and related entities 2,720,000.00 2,735,306.33 2,735,000.00 23 Coaching other compensation and benefits paid by a third-party - - - 24 Support staff/administrative salaries, benefits, and bonuses paid by the university and related entities 1,659,000.00 1,719,690.53 1,720,000.00 25 Support staff/administrative other compensation and benefits paid by a third-party - - - 26 Severance payments - - - 27 Recruiting 180,000.00 149,849.41 120,000.00 28 Team travel 825,000.00 783,169.96 675,000.00 29 Sports equipment, uniforms, and supplies 950,000.00 1,102,165.26 950,000.00 30 Game expenses 200,000.00 169,638.02 150,000.00 31 Fund raising, marketing, and promotion 30,000.00 46,149.41 30,000.00 32 Sports camp expenses - - - 33 Spirit groups 45,000.00 63,784.66 20,000.00 34 Athletic Facilities, debt service, leases and rental fees 902,764.00 316,673.62 320,000.00 35 Direct overhead and administrative expenses 650,000.00 33,805.18 158,672.00 36 Indirect institutional support - - - 37 Medical expenses and insurance 250,000.00 302,786.39 250,000.00 38 Memberships and dues 5,000.00 21,620.61 5,000.00 39 Student-Athlete Meals(non-travel) 100,000.00 103,217.22 100,000.00 40 Other operating expenses 600,000.00 687,529.43 600,000.00 41 Bowl Expenses - - - 41 Bowl Expenses- Coaching Compensation - - - Total operating expenses 13,543,335.00 12,741,982.40 12,338,672.00
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80 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Annual Report to The Finance and Administration Committee 4 The following report highlights the requested information. Please refer to page 3 for the detailed report with the actuals that were audited and submitted to the NCAA. Included in the spreadsheet are the budgets for FY 2020 and 2021. Revenues
UTM Athletics main sources of revenue are direct institutional support, student fees, and game guarantees. Athletics is constantly looking for different ways to increase revenue. Direct institutional support (DIS) accounts for 51% of athletics revenue with 35% of that revenue covering athletic student aid. Athletic student fees account for 17% of athletics revenue and is one of the department’s top revenue concerns. The current student fee at UT Martin is $204 a semester. The student fee was last increased by $50 in 2015-2016 school year. This increase was a great step in the right direction, but with a steady decline in enrollment the student fee has almost returned to the same level of income before the most recent increase. Athletics believes that a student fee increase might be in order to help fund the needs of the department considering that we believe we have tapped all other resources of income. UTM athletics also has an equestrian student fee of $3,000 a semester. The equestrian student fee goes directly to cover the cost of the Equestrian team and is paid by each member of the team. The below spreadsheet shows the most recent five years of student fee income, not including the equestrian team fee.
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81 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Game guarantees (GG) are the next major source of income for athletics. They are an 4 important source of income that the department depends on to make budget. Unfortunately, game guarantees can be difficult to obtain. Football guarantees are largest source of guarantee revenue with games ranging from $300,000 to $500,000 per game. NCAA regulations dictate the football games that can be played in a season, this will either allow us to play one or two guarantees. Years where the team can only play one guarantee game can create financial restraints to the department. These game guarantees also make scheduling difficult. Game guarantees force the teams to play high level Division I teams, which in turn make it more difficult to qualify for playoffs. Athletics would prefer its football team to only have to play one game guarantee a season, but this is currently not an option considering the departments financial needs.
Other revenues such as NCAA/OVC distributions, ticket sales, corporate sponsorships, and concessions have been constant over the past few years and we have found them difficult to increase. They remain important factors to our budget. Expenditures
Athletics biggest expense representing 35.3% of expenditures is grant-in-aid. Athletics currently is not able to provide cost of attendance to its athletes. This will continually become a bigger factor as more and more OVC members are providing cost of attendance to their athletes. The previous year grant-in-aid actuals were slightly higher than budgeted due to a few teams maxing out their rosters. We do expect a slight decrease in the current fiscal year. Athletics’ next biggest cost representing 34.96% of expenditures is salaries and benefits. Coaches’ salaries are always a major discussion within the department. With one of the lowest salary budgets in the conference, athletics is always looking for ways to stretch salaries and find the next up and coming coaches in order to compete with its competition. The next biggest expenditure at 18.19% is Team expenses. Team expenses include recruiting, equipment, team travel, meals and game day expenditures. The recent addition of an all-sport contract with Under Armour and BSN has helped lower our equipment cost.
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Expenses 4
Student Aid
2% 7% Salaries and Benefits 3% 35% 18% Team Expenses
Debt Service
35% Insurance
Other
Unrestricted Fund Balances
Many of our unrestricted fund balance are in good standing. In Athletics a great majority of our coaches depend on these funds to be able to fund yearly team needs that athletics cannot afford to cover. Some of these needs even include team travel. Some of our coaches have worked very hard to keep these accounts in good standing to be able to complete special projects and cover cost on years with higher-than-normal expense or low revenue. Below are unrestricted funds end-of-year balances for 2019-2020.
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84 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Total Outstanding Debt 4 Athletics is currently paying debt service on Baseball and Softball Lights and Field House. The total left on this debt service is $1,357,410.13, this amount includes estimated administrative fees. This debt service averages $115,000 in yearly payments until 2032. The estimated payment schedule is below.
UT Martin Coaches with Contracts – Projected Annual Compensation
Athletics currently has 1 coach on contract—the Head Football Coach. Our Head Men’s Basketball Coach passed away on November 15, 2020. The interim coach is not on contract. We are starting the search process the first of February. Our Head Women’s Basketball Coach retired June 30th and is now working on a post-retirement agreement. Please refer to the below figure to see details on annual compensation and contract years left. Each coach’s contract has performance measures that extend the length of the contract. Coach Jason Simpson has a broadcast pay of $40,000 and an annual retention bonus of $10,000.
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85 2021 - Finance and Administration Committee - Annual Report on Finances of the Intercollegiate Athletics Programs - Information
Future Financial Considerations & Trends 4 COVID impacts continue from last June with the lowering of the NCAA and OVC distributions by almost 70%. This along with the loss of guarantee games in football and men’s basketball from the 2020-21 seasons will have lasting effects. The goal is to continue our trend of increasing our external funding to make up for losses in our operating budgets while not hurting our student athlete experience. Our focus will remain to develop a reasonable facility plan and we feel we will be successful in implementing those in the near future.
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86 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
AGENDA ITEM SUMMARY 5
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: FY 2021-22 Tuition and Fees for UT Health Science Center
Type: Action
Presenter: David Miller, Senior Vice President and Chief Financial Officer
The Health Science Center is presenting its proposed FY 2021-22 student tuition and fee schedules at this meeting rather than waiting until the Board meeting in June. Although the academic year for the other campuses begins in August of each year, for UTSHC it begins on July 1. Waiting until the June meeting for tuition and fees approval creates a challenge for UTHSC students to have financial plans in place before the academic year begins.
UTHSC proposes reducing out-of-state tuition and fees of one program (Doctor of Medicine) and both in state and out-of-state tuition and fees of one program (MS Forensic Dentistry). Tuition for all other programs will remain unchanged. A description of all proposed changes and schedules of proposed FY 2021-22 tuition and fee levels for all programs can be found in the following materials.
Committee Action
The Committee Chair will call for a motion to recommend adoption of the following Resolution by the Board of Trustees.
Resolved: The Board of Trustees hereby approves the FY 2021-22 tuition and fees for the UT Health Science Center as presented in the meeting materials, which shall be attached to this Resolution following adoption.
87 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
UTHSC tuition changes proposed for Board approval:
Reduce Doctor of Medicine out-of-state tuition from $60,489 to $51,850. 5 Two years ago, the College of Medicine set a goal to bring out-of-state tuition for the College of Medicine down to the 150% of the in-state rate. It was reduced to 175% last year. This change will reach the goal of 150%. In the fall 2019, 6.5% of medical students were classified as out-of-state which grew modestly in the fall 2020. With continued growth over the next four years, the revenue will break even to the fall 2019 (FY 2020) level. The campus will manage the shortfall within the current budget over this period.
Reduce Master’s in Forensic Dentistry in-state tuition from $16,712 to $13,500 and out-of- state tuition from $25,140 to $18,500. The College of Graduate Health Sciences proposes a special rate for the Master’s in Forensic Dentistry run through the Graduate School of Medicine in Knoxville. The program is a specialized program (similar to the Master’s in Pharmacology) with very limited enrollment – two in the fall 2020.
UTHSC fee changes presented for information purposes (these do not require Board approval):
Increase Dentistry Clinic Utilization Fee from $3,200 to $4,800. The fee is used to support operations of the Pre-Doctoral clinic, the largest clinic within the college. It provides a training ground for the students seeking the DDS degree.
Increase Nursing DNP Digital Materials Fee from $40 to $155. The program is changing its clinical tracking software to a more robust system that will facilitate students’ clinical education. The price of the new system ($115) will be added to the existing $40 Digital Materials Fee for a total of $155 per year. Including the price in the fee allows students to use financial aid to cover the cost.
Establish a new Pharmacy Immunization Certificate Fee of $150. This is a new fee that will be charged to all first-year Doctor of Pharmacy students for their immunization certification through American Pharmacists Association. The fee will cover the cost of the certificate test and required materials. Assessing this to students as a fee allows them to use financial aid to pay for the test instead of paying out of pocket.
Increase Pharmacy Medication Therapy Management Certification Fee from $100 to $125. This fee is currently charged to third-year Pharmacy students in order to take the test for Medication Therapy Management Certification. The cost of the test has increased, so the fee is being increased. Assessing this cost to students as a fee allows them to use financial aid to pay for the test instead of paying out of pocket.
88 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
Health Science Center FY 2021-22 Annual Tuition and Fees Tuition Change FY 2020-21 FY 2021-22 Amount Percent IN-STATE 5 Graduate Health Sciences $ 10,894 $ 10,894 MS Pharmacology & Forensic Dentistry 16,712 16,712 MS Forensic Dentistry 16,712 13,500 (3,212) -19.2% Medicine Doctor of Medicine 34,566 34,566 Physician Assistant 22,924 22,924 Dentistry General DDS 30,388 30,388 Transitional DDS 73,028 73,028 Dental Hygiene Bachelor of Science 9,988 9,988 Pharmacy 22,370 22,370 Nursing Bachelors 12,705 12,705 Graduate 18,698 18,698 Health Professions Medical Technology 7,990 7,990 Audiology & Speech Pathology **** 11,110 11,110 Entry Level Advanced Degrees * 13,814 13,814 Masters of Cytopathology Practice 9,900 9,900 Entry Lev Adv Degrees Audiology/Speech Path** 18,820 18,820 Post-Professional Degrees *** 10,068 10,068 Masters of Clinical Lab Science 10,068 10,068
OUT-OF-STATE Graduate Health Sciences $ 16,542 $ 16,542 MS Pharmacology & Forensic Dentistry 25,140 25,140 MS Forensic Dentistry 25,140 18,500 (6,640) -26.4% Medicine Doctor of Medicine 60,489 51,850 $ (8,639) -14.3% Physician Assistant 38,962 38,962 Dentistry General DDS 69,148 69,148 Transitional DDS 73,028 73,028 Dental Hygiene Bachelor of Science 19,976 19,976 Pharmacy 27,374 27,374 Nursing Bachelors 36,930 36,930 Graduate 43,538 43,538 Health Professions Entry Level Bachelor of Science Medical Technology 12,000 12,000 - 0.0% Audiology & Speech Pathology **** 29,300 TBD **** Entry Level Advanced Degrees * 31,796 31,796 Masters of Cytopathology Practice 14,400 14,400 - 0.0% Entry Lev Adv Degrees Audiology/Speech Path** 43,396 43,396 Post-Professional Degrees *** 28,008 28,008 Masters of Clinical Lab Science 14,400 14,400 - 0.0%
* Entry Level Advanced Degrees ** Entry Level Advanced Degrees Audiology/Speech Path Doctor of Physical Therapy Doctor of Audiology Master of Occupational Therapy Master of Science in Speech-Language Pathology Transitional Doctor of Audiology
*** Post-Professional Degrees **** Bachelor of Audiology & Speech Pathology Doctor of Science in Physical Therapy This is a joint degree with UTK where UTHSC will teach Master of Science in Physical Therapy the 4th year of the Bachelor's program but charge the Transitional Doctor of Physical Therapy UTK tuition rate.
89 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
Health Science Center FY 2020-21 Annual Tuition and Fees Other Fees CHANGE FY 2020-21 FY 2021-22 Amount Percent OTHER FEES 5 Health Insurance * $ 3,432 TBD * Disability Insurance 44 TBD * Malpractice Insurance Medicine Class of 2021 and 2022 14 14 Class of 2019 and 2020 43 43 Pharmacy 20 20 Nursing 20 20 Health Professions 20 20 Dentistry 17 17 Course Proficiency Exam Fee 200 200 Other Fees - Health Professions CHP OT Board Review Fee 150 150 CHP OT Media Fee 150 150 Other Fees - Nursing CON Pre-Licensure Digital Course Materials Fee-1st Term 617 617 CON Pre-Licensure Digital Course Materials Fee-2nd Term 617 617 CON Pre-Licensure Digital Course Materials Fee-3rd Term 617 617 CON DNP Digital Course Materials Fee 40 155 115 287.5% CON Nursing Kit 311 311 CON Digital Equipment Fee 420 420 CON Board Review Fee 315 315 Other Fees - Medicine COM Step 1 Exam Prep Fee 120 120 COM PA Digital Course Materials Fee 48 48 COM PA Medical Equipment Fee 476 476 COM PA Board Review Fee 268 268 Other Fees - Pharmacy COP Pre-Naplex Exam Fee-4th Year all in Fall Semester 80 80 COP MTM Certificate Fee-3rd Year all in Fall Semester 100 125 25 25.0% COP Point of Care Testing Certificate Fee 140 140 COP Board Review Fee 175 175 COP Immunization Certificate Fee 150 150 NEW Other Fees - Dentistry COD Dentistry Student Government 60 60 COD Laboratory and Clinical Utilization Fee 3,200 4,800 1,600 50.0% COD Graduate Endodontics Clinical Utilization Fee 12,750 12,750 COD Graduate Orthodontics Clinical Utilization Fee 7,000 7,000
Audiology Mandatory Fees (UTK Campus) 1,932 1,932 * Health insurance rates for FY 2021-22 will be known in April or May. The change will be addressed at the June, 2021 Board of Trustees Meeting.
90 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
Health Science Center FY 2021-22 Annual Tuition And Fees Mandatory Fees
CHANGE 5 FY 2020-21 FY 2021-22 Amount Percent IN-STATE AND OUT-OF-STATE Student Programs and Services Fee (SPSF) Student Activity $ 26 $ 26 Campus Recreation 40 40 Campus Improvement 50 50 Simulation Center Equipment Fee 300 300 Debt Service 54 54 Computer Based Testing Fee 50 50 Health Services 200 200 Counseling 280 280 Total Student Programs and Services Fee (SPSF) $ 1,000 $ 1,000 Other Mandatory Fees Technology $ 240 $ 240 Graduation/Yearbook 50 50 Total Other Fees $ 1,290 $ 1,290
91 2021 - Finance and Administration Committee - FY 2021-22 Tuition and Fees for UT Health Science Center - Roll Call Vote/Action
Health Science Center FY 2021-22 Annual Tuition and Fees Online Fees Change 5 FY 2020-21 FY 2021-22 Amount Percent UNDERGRADUATE MEDICAL TECHNOLOGY IN-STATE Course Fee $ 350 $ 350 Online Support 46 46 Total $ 396 $ 396
OUT-OF-STATE Course Fee $ 415 $ 415 Online Support 46 46 Total $ 461 $ 461
Graduate IN-STATE Course Fee $ 640 $ 640 Online Support 46 46 Total $ 686 $ 686
OUT-OF-STATE Course Fee $ 705 $ 705 Online Support 46 46 Total $ 751 $ 751
HEALTH INFORMATICS AND INFORMATION MANAGEMENT IN-STATE Course Fee $ 500 $ 500 Online Support 50 50 Total $ 550 $ 550
OUT-OF-STATE Course Fee $ 550 $ 550 Online Support 50 50 Total $ 600 $ 600
NURSING DOCTORATE IN-STATE Course Fee $ 600 $ 600 Online Support 50 50 Total $ 650 $ 650
OUT-OF-STATE Course Fee $ 650 $ 650 Online Support 50 50 Total $ 700 $ 700
92 2021 - Finance and Administration Committee - Proposed Paid Parental Leave Policy - Roll Call Vote/Action
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021 6
Committee: Finance and Administration
Item: Proposed Policy on Paid Parental Leave
Type: Action
Presenter: David L. Miller, Senior Vice President and Chief Financial Officer
The University Administration seeks approval to adopt a Policy on Paid Parental Leave. The proposed policy will provide eligible University faculty and regular staff paid time off upon the birth or adoption of a child.
Eligible faculty and staff would be entitled to six weeks (30 days) of paid parental leave within the first 12 months following the birth or adoption of a child. This leave would run concurrently with the 12 weeks (480 hours) of unpaid leave provided by the Family and Medical Leave Act (FMLA), the four months of unpaid leave provided by the Tennessee Parental Leave Act (TPLA), and the 12 weeks of unpaid leave provided for adoptive parents under Tennessee Code Annotated §8-5-806. The leave would be available without regard to the amount of sick or annual leave accrued by the employee, and the employee would not be required to use any accrued leave during this six-week period.
A summary of the key provisions of the proposed Policy on Paid Parent Leave is set forth in Attachment A.
The financial impact is anticipated to vary among employee groups. In many cases, the work of an employee on leave can be absorbed by other employees, but, in other cases, temporary staff may need to be hired. Currently, it is difficult to predict the financial impact because data is not available regarding use of current leave policies related to childbirth/adoption (e.g. FMLA, TPLA, and Annual Leave). With respect to faculty, it is anticipated that the financial impact will be most significant in units with little or no redundancy in academic disciplines. Instructional gaps may need to be filled by hiring lecturers or visiting faculty.
93 2021 - Finance and Administration Committee - Proposed Paid Parental Leave Policy - Roll Call Vote/Action
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As more higher education institutions and other employers adopt paid leave, the University seeks to be competitive in recruiting highly qualified candidates, as well as increasing morale of existing employees by providing this benefit.
If approved, University Administration will develop a system-wide human resources policy and related procedures in order to implement the paid parental leave effective as of July 1, 2021.
The President, Senior Vice President and Chief Financial Officer, and Chief Human Resources Officer recommend approval of the proposed Policy on Paid Parental Leave. If approved, the University Administration will seek the required approval of the Commissioner of Finance and Administration as specified in Tenn. Code Ann. §8-50-209.
Committee Action
The Committee Chair will call for a motion to recommend adoption of the following Resolution by the Board of Trustees.
Resolved:
1. The Board of Trustees hereby approves the creation of a system-wide Human Resources (HR) Policy on Paid Parental Leave (“Policy”), consistent with the key terms set forth in Attachment A, attached hereto and incorporated herein by reference.
2. The Policy and any related procedures shall be in form and substance consistent with the provisions set forth herein as determined by the Senior Vice Chancellor and Chief Financial Officer, in consultation with the General Counsel, and subject to all necessary approvals by the appropriate state agencies.
3. The proper officers of the University be and hereby are authorized to take any and all such actions as may be required or which they may deem necessary or appropriate in order to accomplish the foregoing.
94 2021 - Finance and Administration Committee - Proposed Paid Parental Leave Policy - Roll Call Vote/Action
Attachment A
Summary of Paid Parental Leave Benefit
Objective:
To provide eligible University faculty and regular staff paid time off to spend time with a new child. 6
Policy:
Eligible faculty and staff are entitled to six weeks of paid parental leave within the first twelve months following childbirth or adoption.
General Guidelines:
Eligibility: This benefit is available to regular, active employees (including 9-month faculty) as defined in HR0105, assigned to work at least 75% and on payroll for at least 12 consecutive months.
Relation to other leave entitlements: This six-week paid period runs concurrent with the 12 weeks (480 hours) of unpaid leave provided by the Family and Medical Leave Act (FMLA), the four months of unpaid leave provided by the Tennessee Parental Leave Act (TPLA), and the 12 weeks of unpaid leave provided for adoptive parents under Tennessee Code Annotated section 8-5-806. See HR Policy No. 0338.
Relation to accrued leave: Paid parental leave is available without regard to the amount of sick or annual leave accrued by the employee, and the employee will not be required to use any accrued leave during this six-week period. If employees wish to remain on FMLA/TPLA leave after the expiration of their paid parental leave period, they may use accrued leave for the remainder of their leave entitlement periods.
Use period: Employees must use their paid parental leave within 12 months after the birth or adoption of their child. However, adoptive parents may use their paid parental leave before the placement if necessary to fulfill the legal requirements of the adoption process.
Separation during paid parental leave: Benefits associated with this policy end when an employee’s FTE is reduced below 75% or the employee separates from the University.
Coordination with department: Employees are expected to notify their departments of their intent to take parental leave as far in advance as possible and to cooperate with their departments to ensure that work responsibilities are satisfied to the extent possible with minimal disruption to the University’s operations.
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95 2021 - Finance and Administration Committee - Proposed Paid Parental Leave Policy - Roll Call Vote/Action
Attachment A
Coordination with faculty modified duties programs: Chief academic officers will issue guidance on coordination of this leave policy with other procedures or practices related to reassignment of academic duties.
Miscellaneous: 6 ∑ Payment of this benefit is based on the employee’s hourly or monthly salary, and does not include overtime, extra service pay, or other compensation. If both parents are employees of the University, each parent is entitled to receive six weeks of paid leave. Parents may use their paid parental leave concurrently or during separate periods. ∑ Employees wishing to receive paid parental leave should notify their campus/institute/system Office of Human Resources, which will provide guidance.
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96 2021 - Finance and Administration Committee - Enterprise Resource Planning (ERP) PPT - Information
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration 7
Item: Enterprise Resource Planning (ERP) Update
Type: Information
The University of Tennessee implemented a systemwide enterprise resource planning (ERP) system in 2001 on a Systems Applications and Products (SAP) platform. The implemented software (called IRIS) has served UT very well in managing financial and payroll operations. However, the on-premise software will cease to be supported by SAP in 2025.
As first reported to the Board in November 2019, the UT System is embarking on a long- term project to replace the ERP system for finance and human resource operations. Previous reports indicated that UT System has retained Huron Consulting as the first step in planning a “readiness assessment” to evaluate the state of financial and human capital management operations and how best to prepare for vendor selection and the transition to a new ERP system.
The Huron engagement is complete, and UT System has hired a new Chief Information Officer, Ramon Padilla, who will serve as the project sponsor. The following report outlines the specific processes and timelines for the steps necessary for a successful project.
97 2021 - Finance and Administration Committee - Enterprise Resource Planning (ERP) PPT - Information
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Board of Trustees Update February 25,2021
98 2021 - Finance and Administration Committee - Enterprise Resource Planning (ERP) PPT - Information
Project Overview/Review
Why a new ERP? 7 Current SAP platform – technically at end of life – no functional improvements being made to it by the vendor. Must move to a new solution to gainfunctionality. A new modern cloud-based ERP will provide us with: • Ability to keep pace with the latest software updates and state of the art technology, such as artificial intelligence (AI) and machine learning, with less complexity, risk and shorter implementation timelines. • Realize the operational efficiencies of standardized industry-leading business processes across the UT System. UT will adapt its business processes to the selected software, not vice-versa. • A modern mobile-native, consumer-grade user experience and improved reporting capabilities from a single platform with a single security authorization scheme.
99 2021 - Finance and Administration Committee - Enterprise Resource Planning (ERP) PPT - Information
Guiding Principles
ß Governance, Transparency & Inclusion ß The Program is committed to broad system-wide representation and transparent decision-making. The Program will 7 communicate frequently and fully to ensure accurate information and data are shared with the wider UTcommunity, while also enhancing distributed data access. ß Measurable Improvements ßTransformed business processes will be measured via qualitative and quantitative key performance indicators (KPIs) created from the project’s goals to track ongoing performance and identify continuous improvement efforts. ß Integrating Technology ß UT System will adopt a culture of continuous improvement through technology which supports operational efficiency along with State and UT policy. We will first use the ERP platform functionality to its fullest extent before considering additional software packages. ß Simplification & Standardization ß The Program will work to simplify operations and processes, increase overall operational efficiency, and drive a single source of truth across the UT System. Business processes should follow best practices, facilitate succinct system- wide operations, and continuous improvement.
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100 2021 - Finance and Administration Committee - Enterprise Resource Planning (ERP) PPT - Information
Project Overview/Review
Huron Engagement 7
ß Work centered on discovery and readiness assessment. ß Original timeline for project had UT in the vendor selectionprocess in the Fall of 2020. ß Learnings from the Huron engagement, coupled with sensitivity to COVID-19 related challenges and the addition of a new CIO, caused the executive team to re-evaluate project timeline. ß Specifically,readiness assessment highlighted the need for more in depth preparation and planning activities. ß Analysis of other large ERP implementations showed strong correlations between readiness and project success. ß Over 100 staff systemwide participated in four vendor experience sessions that were held in December.
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Next Steps
New Project Sponsor, Timeline and Opportunities to Engage 7
ß “The project sponsor is the driver and in-house champion of the project. They are typically members of senior management. Project sponsors work closely with the project manager. They participate in high-level project planning. In addition, they often help resolve conflictsand remove obstacles that occur throughout the project.” ß The Executive Committee chose new CIO Ramon Padilla as project sponsor due to his experience with ERP planningand implementation. ß ERP Executive Committee: David Miller (Executive Sponsor), Mark Paganelli (Business Sponsor), Brian Dickens (Business Sponsor), Ramon Padilla (Project Sponsor)
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DRAFT FOR DISCUSSION |ERP Timeline Finance/HR | DRAFT FORDISCUSSION HighLevelActivities Jan May Sep 2022 May Sep 2023 May Sep 2024 May Sep
Jan 1 ERPPROJECT Jul 1 Jul 1 PHASE II: 24 Month Implementation Jul 1 7 Jan 1 PHASE I: Planning and Preparation Jul 1
Jun Jan 1 Business Process Review/Data Governance/Cleanup Activities 30 Standup Project/ChangeManagement/Stakeholder Teams Mar Jan 4 30 Integration HubSolicitation, Evaluation, Contracting Feb 1 Apr 1
Integration HubImplementationand Training Apr 4 Oct 1
BusinessProcess Reimagineand Redesign RFPSolicitation Feb Mar 12 12 Formal BusinessProcess Reimagine Workshops Apr 4 Aug 1
ERP Product Solicitation, Evaluation andContracting Sep 1 Jan 3 ERP Product Implementer Solicitation, Evaluation andContracting Apr Jan 3 29
Data and Analytics Strategy and Implementation Nov Jul 1 Go Live 4
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Systemwide Engagement
Change Management Strategy 7 ß Establish transition management teams
Due to the size and scope of the University of Tennessee, our ERP project will engage every institution for their assistance in a complex set of activities and communications. Local teams of cross-functional leaders / subject matter experts will serve a criticalfunction to connect each institution to the project.
ß Create and deliver change management training
The potential effects of a new ERP on the University of Tennessee will grow as the project progresses through preparation and into implementation. Fundamentally, organizational change occurs when individuals change. Training will be used to help smooth the transition to the new ERP and will prepare individuals for implementation.
ß Assess Change Readiness and Engagement - Survey and Benchmarking
This assessment will cover items such as capacity for change, leadership styles, residual effects of past changes, predisposition toward the change, and employee readiness. Information from the survey will be analyzed and used as part of change management planning, specifically to draft an enterprise-wide Organizational Readiness Assessment and Change Management Plan for the project. The goal will be to recognize the capacity for and resistance to change, and design mitigating strategies for implementation.
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Business Process Reimagine Workshops
7 ß Enterprise wide, cross-institution business process reimagining workshops will be held to think through redesigning processes in advance of the new ERP system implementation. ß Goal of the workshops is for the UT System to the extent possible, have a shared and updated set of standardized key business processes in HR and Finance by which to operate and guide the overall implementation of the new ERP system. ß Specifically,these effortswill focus on improving service delivery to students, staff, faculty, alumni, and other constituents by: ß Identifying opportunities to increase efficiencyand reduce redundancy. ß Informing the new ERP solution implementation with best practices. ß Ensuring that the new ERP system will be used most effectively. ß Positioning the UT System to effectively address the demands of the functional areas and aid in removing administrative barriers in these areas.
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ERP Solution Evaluation
ß The Steering Committee and other stakeholders and subject matter experts will 7 play a key role in the evaluation of potential ERP solutions for the UT System.
ß These individuals will devote significant time and effort in vendor response evaluation, vendor demonstration evaluation and vendor reference checks.
ß Teams will be created to evaluate the vendor solutions by domain (HR/Finance) and functional area.
ß Many of the team participants will likely participate as members of implementation teams once a vendor is selected.
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Who and When? - Phase I
7 Campus staffparticipation and resource commitments.
ß Participation by campus staff will be needed beginning April 2021 through May 2022. ß Transition Management Teams – 1 Team from each campus, that will include representatives from HR, Finance, Communications/Marketing, Information Technology and Institutional Research. Teams will kick off inApril time frame. Meeting frequency – once a month in Phase I. ß Business Process Reimagine and Redesign – Multiple teams based on business processes being reviewed. Participants based on knowledge of subjectarea. Time commitments will be spread across approximately thirty individuals duringthis time. ß ERP Evaluation - Multiple teams based on software functionality being reviewed. Participants based on knowledge of subject area. Time commitments will be spread across approximately fifty individuals during this time.
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7 QUESTIONS?
108 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration 8 Item: Consent Agenda
Type: Action
Presenter: Bill Rhodes, Chair of the Finance and Administration Committee
Certain action items and information items have been placed on the Committee Consent Agenda. These items will not be presented or discussed in the Committee unless a Committee member requests removal of an item from the Consent Agenda. In accordance with the Bylaws, before calling for a motion to approve the Consent Agenda, the Committee Chair will ask if any member of the Committee requests that an item be removed from the Consent Agenda. The Bylaws provide that an item will not be removed from the Consent Agenda solely for the purpose of asking questions for clarification. Those questions should be presented to the Secretary before the meeting.
Committee Action
If there are no requests to remove an item from the Consent Agenda, the Committee Chair will call for a motion in support of the following:
1. The reading of the minutes of the October 22, 2020 meeting of the Committee be omitted and that the minutes be approved.
2. The action items set forth on the Consent Agenda be recommended for adoption by the Board of Trustees.
If the motion passes, the action items will go forward to the Consent Agenda of the full Board meeting.
109 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action
THE UNIVERSITY OF TENNESSEE BOARD OF TRUSTEES
MINUTES OF THE FINANCE AND ADMINISTRATION COMMITTEE October 22, 2020 Knoxville, Tennessee
The Finance and Administration Committee of The University of Tennessee Board of Trustees met at 8:00 a.m. (EDT) on Thursday, October 22, 2020. Following continuing guidance from the U.S. Centers for Disease Control and Prevention (CDC) regarding COVID-19 and in compliance with 8.1 the Tennessee Pledge and other state and local guidelines, the meeting was held virtually with Committee members participating electronically or by telephone. The meeting was hosted from the University of Tennessee, Knoxville campus.
I. Call to Order and Roll Call
Committee Chair Bill Rhodes called the meeting to order. Board Secretary Cynthia Moore called the roll, and the following members of the Committee were present: William (Bill) C. Rhodes III, Committee Chair; John C. Compton, Board Chair; and Amy E. Miles. In addition, the following trustees were in attendance: Bradford D. Box; Leighton Chappell, Student Trustee; Decosta E. Jenkins; and Donnie Smith.
Others present included: President Randy Boyd; David Miller, Senior Vice President and Chief Financial Officer; Brian Dickens, Chief Human Resources Officer; Ron Loewen, Assistant Vice President for Budget and Planning; Austin Oakes, Executive Director for Capital Projects; Chancellors Angle, Carver, Plowman, and Schwab; and other members of the UT senior leadership and administrative staff. The meeting was webcast for the convenience of the University community, the general public, and the media.
Ms. Moore addressed the Open Meetings Act requirements for meetings conducted with members participating electronically and announced the presence of a quorum.
II. Opening Remarks of the Committee Chair
Committee Chair Rhodes welcomed everyone to the meeting. Before moving into the agenda, he expressed his gratitude to President Randy Boyd, the senior leadership team, and the Chancellors for their incredible work on behalf of faculty, students and all constituency groups during the pandemic. He acknowledged the remarkable efforts of the entire University community in response to this extraordinary event.
III. Requests to Address the Board
None.
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IV. CFO’s Report on the Committee’s Strategic Priorities
David Miller, Senior Vice President and Chief Financial Officer, began his remarks by providing an update on the operating budget, which focused on the financial impacts of the COVID-19 pandemic.
Operating Budget Update
Mr. Miller reviewed the financial information shared with the Board previously in connection with the Executive Committee meeting held on September 11, 2020. He then presented the current 8.1 projections, along with the estimates for UT Knoxville athletics and other auxiliaries. Mr. Miller discussed the strategies employed for mitigating and managing the financial impact of the pandemic. Chancellor Plowman discussed the actions taken and under consideration with respect to UT Knoxville athletics, which actions assume that the full, in-conference schedule for football proceeds. Mr. Miller highlighted the significant impacts by campus from both a revenue and expense standpoint. Lastly, he shared the five largest areas of expense reduction, noting that certain areas are actual savings (e.g., reduction in travel) while others are deferrals of expenses (e.g., maintenance and repairs).
Quarterly Financial Update
Mr. Miller discussed first quarter FY 2020-21 (July 1 through September 30) performance against the same period for the prior fiscal year. He indicated that Unrestricted Educational and General (E&G) Funds were 1.8% higher than the prior year, but that Unrestricted Auxiliary Funds were 28.7% lower than the prior year due primarily to the decrease in housing revenues. From an expenditure standpoint, the largest change was associated with Unrestricted Auxiliary Funds. Overall, for the comparison period, total revenues declined approximately .9%, and total expenditures declined by approximately 2.2%. The state appropriation was essentially flat, as the prior year included a one-time grant of $10 million for safety and security upgrades, and scholarship expenditures increased by approximately $6.8 million. Mr. Miller also reviewed net revenues/expenses by campus/institute for the first quarter of FY 2020-21, as compared to the same period for the prior fiscal year.
The members of the Committee reflected on the positive impact of enrollment growth on tuition revenues. Mr. Miller confirmed that the enrollment growth was the contributing factor, as tuition rates were not increased for FY 2020-21, and, in certain instances, tuition rates were reduced.
Enterprise Resource Planning (ERP) System
Mr. Miller provided an update on the ERP project. His presentation addressed a number of topics, including: program objectives; composition of the Steering Committee; project phases; project approach; vendor selection criteria; community engagement; progress to date; and future timelines and decisions. Mr. Miller highlighted the Guiding Principles developed for the ERP Program.
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Committee Chair Rhodes remarked on the critical importance of setting expectations with respect to the project. He expressed his strong support for the following two statements contained in the Guiding Principles –
ÿ Simplification and Standardization – Processes will be redesigned based on higher education best practices and ERP functionality; and ÿ Integrating Technology – Rather than configuring software to current operations, the way we work will change as we adopt new functionality. 8.1 Board Chair Compton inquired as to a cost/benefit analysis for the ERP project. In this regard, Mr. Miller indicated that the request for proposals will include this as an element of the proposal submission. Based on preliminary information, it appears that the pay-back period for these types of projects is approximately 7-8 years, depending on the scope of the project. In response to additional questions from members of the Committee, Mr. Miller reported that the cost estimate for the ERP project is $40 million, which reflects cash outlay to the vendor for the application and the cost of the system integration consultant. This figure does not encompass University employee time. Ms. Miles reinforced the need to avoid customizations and/or additional systems. She stressed the importance of soliciting feedback from the user group on the front-end of the project.
V. FY 2021-22 Operating Budget Appropriations Request for Specialized Units
Mr. Miller explained that each year the University has the opportunity to present a state appropriations budget request for improvement funding for the University’s specialized units – UT Health Science Center (UTHSC); Institute for Agriculture (UTIA); Institute for Public Service (IPS); and UT System Administration. He highlighted the five-year history of funding requests (chart provided in Tab 2 of the meeting materials). The University’s FY 2021-22 appropriations request was derived from THEC’s recommendation for FY 2020-21 (approximately $20.1 million).
The leadership team addressed questions raised by the Committee members as to funding for equipment replacement (UTHSC), the size of the University’s funding requests, and the limited number and size of actual appropriations. It was noted that, due to the new funding formula, the specialized units have received no additional, recurring funding. As such, their operating budgets have borne inflationary impacts. In addition, revenues associated with the specialized units are largely fixed, with little price elasticity. President Boyd remains optimistic for future recurring funding for the specialized units for two reasons – (1) increased advocacy and understanding as to the unique roles these institutions serve (education versus government agency function), and (2) anticipated strong financial position of the State of Tennessee.
Upon motion duly made and seconded, a roll call vote was taken, and the Committee approved a recommendation that the Board of Trustees adopt the Resolution approving the FY 2021-22 Operating Budget Appropriations Request for Specialized Units (as set forth in Tab 2 of the meeting materials).
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VI. Use of UHS Proceeds
Mr. Miller advised that, under an existing Lease and Transfer Agreement with University Health System, Inc. (UHS), the University receives annual payments that can be used at the discretion of the Board. The Administration is recommending that up to $1,550,000 of the outstanding balance of $4,239,000 in UHS proceeds be used to support the acquisition of a vivarium facility and adjacent land, which acquisition is contemplated in the UTHSC Campus Master Plan.
In response to questions raised, Mr. Miller explained how projects are identified and how funds have been used historically. Upon motion duly made and seconded, a roll call vote was taken, and 8.1 the Committee approved a recommendation that the Board of Trustees adopt the Resolution approving the allocation of the UHS proceeds (as set forth in Tab 3 of the meeting materials).
VII. Revisions to Board Policy on Travel
Board Secretary, Cynthia Moore, indicated that existing Board policies are reviewed on a periodic basis as a best governance practice. Currently, there are two outstanding Board policies pertaining to travel (BT0003 – Policy Statement on Travel; and BT0019 – Policy on University Aircraft). Given the overlap in these policies, Ms. Moore has worked with Mr. Miller and Ryan Stinnett, General Counsel, to streamline and combine the policies into a single travel policy (revised BT0003). Additionally, the proposed policy reflects the intended use of an aircraft donated to the University, designated for use by UT Knoxville athletics, and removes administrative items from the policy that are more suitable for inclusion in University procedures. Ms. Moore concluded her remarks by highlighting certain provisions of the proposed policy intended to safeguard the proper use of University-owned aircraft. Committee Chair Rhodes remarked that it is important for the University’s internal auditing team to verify the use of University-owned aircraft for compliance with the travel policy.
Upon motion duly made and seconded, a roll call vote was taken, and the Committee approved a recommendation that the Board of Trustees adopt the Resolution approving the revisions to the Board Policy on Travel (as set forth in Tab 4 of the meeting materials).
VIII. UT System Workforce Update
Brian Dickens, Chief Human Resources Officer, provided an overview of the University’s workforce as of September 30, 2020. The presentation included the following items:
ÿ Employees by category (faculty, exempt, non-exempt); ÿ Number of employees by campus/institute/system administration; ÿ Overall minority and gender representation of the workforce; ÿ Educational credentials of the workforce; ÿ Average years of service, average age of employees, and percentage of employees eligible for retirement; and ÿ Changes in the workforce in the last year (new hires, separations, transfers, etc.).
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Additionally, Dr. Dickens presented an update on the University’s compensation study. He reviewed the timeline, the issues identified, actions taken, and the implementation plan. In response to questions from members of the Committee, Dr. Dickens discussed plans for future compensation studies pertaining to faculty compensation at the various campuses. Chancellor Plowman discussed efforts to address concerns raised as to lecturer pay at the UT Knoxville campus. Dr. Dickens addressed the status of the organizational health survey (as to both employees and students).
IX. FY 2020 Report on Endowment Investment Performance 8.1
Mr. Miller reviewed the investment performance of the University’s endowment as of June 30, 2020, along with performance since the close of the fiscal year. Mr. Miller discussed the recent changes in target allocations and the ongoing rebalancing efforts, as recommended by the University’s new investment advisor (Cambridge Associates). It was noted that the consolidated investment pool (CIP) was over-weighted in certain categories (i.e., private natural resources and energy) and under-weighted in others (i.e., public and private equity), as compared to the University’s peers. He remarked on the particularly poor performance of oil and certain other commodities during the last fiscal year and the resulting negative impact on the endowment return. Mr. Miller explained that adjustments are being made, but it will be some time before the transition is fully executed.
Committee Chair Rhodes recognized Mr. Jim Haslam, whose term of service as a member of the Investment Advisory Council (Council) has been fulfilled, for his many contributions. Mr. Rhodes, who also serves as chair of the Council, stated that he was pleased with the professionalism of the investment advisor. It was confirmed that the UC Foundation is a separate entity under the oversight of its own board; however, as a related organization an annual report is provided by the UC Foundation to the Board of Trustees.
X. Consent Agenda
Committee Chair Rhodes called the Committee’s attention to the Consent Agenda and asked if there were any requests to remove an item from the agenda. There being none, upon motion duly made and seconded, a roll call vote was taken, and the Committee approved: (i) the Resolution to adopt the minutes of the June 25, 2020 meeting of the Committee, and (ii) the Resolutions pertaining to the other action items included on the Consent Agenda. (A complete list of the approved items appears at the end of these minutes.)
XI. Other Business
None.
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XII. Closing Remarks
Committee Chair Rhodes thanked the committee members for their participation and contributions to the meeting discussion. He also expressed his appreciation to Mr. Miller and the members of the team for all their efforts in preparing for the meeting, especially during a global pandemic.
XIII. Adjournment
There being no other business to come before the Committee, the Committee Chair adjourned the meeting. 8.1 Respectfully Submitted,
______Cynthia C. Moore Secretary and Special Counsel
Approved Consent Agenda Items ∑ Minutes of the Last Meeting (June 25, 2020) ∑ Real Property Transactions: ÿ Knox Blount Greenway Easement Expansion – UTIA ÿ Cumberland Forest Property Transfer – UTIA ÿ Sale of Gift Property at Hickory Orchard Way in Knoxville, TN - UTK ∑ Naming of new dental building and grounds of the University of Tennessee College of Dentistry complex – UTHSC (Delta Dental of Tennessee Building and the Delta Dental of Tennessee Oral Health Complex) ∑ Updated Corporate Authorization – Transfer of Securities
List of Information Items Presented to the Committee ∑ Report on Use of Differential Tuition Funds at UTC ∑ Report on Use of Differential Tuition Funds at UTK ∑ FY 2020 Annual Flight Operations Report ∑ Disclosure of Additional Revenue/Institutionally-Funded Capital Projects for FY 2020-21 ∑ Updated Committee Work Plan
Attachments. Copies of the following documents are filed with the official minutes of this meeting. ∑ Presentations: ÿ CFO Report on Strategic Priorities & Key Performance Indicators ÿ Enterprise Resource Planning (ERP) System ÿ UT System Workforce Update
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AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: Naming of JTV Center for Applied Business Analytics, UTK 8.2
Type: Action
In accordance with the Board Policy on the Naming of Facilities and Other Assets of The University of Tennessee (BT0008) and the Board-Approved Guidelines for Naming Opportunities and Endowments, Chancellor Donde Plowman has recommended the naming of an academic center in recognition of generous gift associated with a long- relationship between the UTK’s Department of Business Analytics and Statistics and Jewelry Television (JTV). More information is provided in the attached letter.
Resolved: The Board of Trustees hereby approves naming of the JTV Center for Applied Business Analytics in recognition of the generous gift of the senior leadership of JTV organization, as further described in the meeting meeting materials.
116 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action ii January 27, 2021 THE UNIVERSITY OF
TENNESSEEKNOXVILLE President Randy Boyd University of Tennessee System 800 Andy Holt Tower Knoxville, TN 37996
Dear President Boyd: 8.2 In accordance with the Board of Trustees Policy on Naming of Facilities and Other Assets, and the BoardApproved Guidelines for Naming Opportunities and Endowments, the University of Tennessee, Knoxville, seeks approval to name the JTV Center for Applied Business Analytics after one of our distinguished and generous corporate partners, JTV.
The relationship between Jewelry Television (JTV) and the University of Tennessee has a long and rich history. JTV founders, Bob Hall, Jerry Sisk and Bill Kouns, as well as major shareholders, Charlie Wagner and Greg West are all graduates of UT, spanning various departments/areas of study. In addition, many UT alumni serve in leadership roles within the company and have played a large part in JTV's success. Beginning in 1998, the UT Department of Business Analytics and Statistics engaged with JTV to help enhance decision making capabilities across key strategic areas within the company. Since that time, UT has been a steady provider of analytics talent in the form of internships and fulltime placements. In more recent years, JTV has also been a member of the Business Analytics Forum and has worked with teams of Master's students on capstone projects. An article is attached to this memo further detailing the relationship between the university and JTV.
A gift valued at $5,000,000 from senior leadership within the JTV organization has been committed to fund the proposed cutting-edge analytics theory and practice center. The endowments' earnings will fund operational expenses, including but not limited to faculty support, fellowships, technological resources, and so on.
The long-standing relationship between the UT Department of Business Analytics and Statistics and JTV makes the naming of this center a natural one. In recognition of the distinguished leadership and service of these donors, in addition to the generous financial commitment, we request approval from the Board of Trustees to name the JTV Center for Applied Business Analytics at the University of Tennessee, Knoxville.
Sincerely,
Donde Plowman Chancellor
Office of the Chancellor 527 Andy Holt Tower 1331 Circle Park Drive Knoxville, TN 37996-0184 office865-974-2444 chancello,·rg,utkedu
BIG ORANGE. BIG IDEAS/
117 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action
AGENDA ITEM SUMMARY
Meeting Date: February 25, 2021
Committee: Finance and Administration
Item: Renaming of Orange Hall in Honor of Rita Sanders Geier, UTK 8.3
Type: Action
In accordance with the Board Policy on Naming of Facilities and Other Assets of The University of Tennessee (BT0008) and the Board-Approved Guidelines for Naming Opportunities and Endowments, Chancellor Donde Plowman recommends the renaming of Orange Hall.
The residential facility opened in Fall 2016 and was given a placeholder name of Orange Hall. As the campus explores intentional naming opportunities to formally recognize and celebrate the contributions of historically underrepresented individuals or groups to the University community it is proposed that Orange Hall be renamed Geier Hall in honor of Rita Sanders Geier.
The attached letter from Chancellor Plowman provides additional background information, including Ms. Geier’s accomplishments and outstanding contributions.
Resolved: The Board of Trustees hereby approves renaming of Orange Hall in honor of Rita Sanders Geier in recognition of her many accomplishments and outstanding contributions, as further described in the meeting materials which shall be attached to this resolution.
118 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action
THE UNIVERSITY OF TENNESSEE MEMORANDUM KNOXVILLE
TO: Randy Boyd, President
FROM: Donde Plowman, Chancellor '\J-� 8.3
DATE: January 26, 2021
SUBJECT: Request to Rename Orange & White Residence Halls
In accordance with the University of Tennessee Board of Trustees Policy on Naming Facilities and Other Assets, the University of Tennessee, Knoxville requests that Orange Hall and White Hall be renamed in honor of Rita Sanders Geier (Orange Hall) and Theotis Robinson, Jr. (White Hall).
Orange Hall and White Hall are two residence halls that were part of the West Campus Redevelopment project. Designed in "pod" style and/or apartment style housing, these residence halls are in demand by our students. Each residence hall has a community kitchen and two study lounges on each floor as well as community laundry facilities. Orange Hall also offers various multip urpose rooms that provide space for holding programs and/or classes.
When these two residential facilities initially open in Fall 2016, they were given placeholder names while more permanent names could be presented for campus approval. It has been nearly four years since the halls initially opened, and these placeholder names continue to adorn these facilities. As the campus explores intentional naming opportunities to formally recognize and celebrate the contributions of historically underrepresented individuals or groups to our university community, we respectfully propose that these two residence halls be renamed in honor of Theo t is Robinson, Jr. and Rita Sanders Geier. White Hall would be renamed Robinson Hall, and Orange Hall would be renamed Geier Hall.
The attached documents provide context and background information regarding their individual accomplishments and outstanding contributions to our university community. Amidst our desire to create a more welcoming campus community where everyone matters and belongs, we seek to recognize two individuals who worked tirelessly for equal justice for historically underrepresented students on campus and in our state.
With your agreement, we request this be submitted for approval at the next Executive Committee meeting of the University of Tennessee Board of Trustees or, at the latest, the June meeting of the University of Tennessee Board of Trustees. If you have any questions, please contact me.
Approved By: Randy Boyd, President
cc: Cindy Moore
Office of the Chancellor 527 Arciy I lo't Tcwier 1331 Ci'cle Pa.-!•: Drhe l BIG 011ANGE. BIG IDEAS/ 119 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Naming of White Hall in honor of Ms. Rita Sanders Geier Rita Sanders Geier, formerly Associate to the Chancellor and Senior Fellow at the Howard Baker Center for Public Policy at the University of Tennessee at Knoxville (2007·2011) 1 led efforts to achieve the university's intercultural and diversity goats and to promote solutions to critical public policy issues, She assumed these positions after an extensive career in public service, most recently as Executive Counselor to the Commissioner of the Social Security Admini.stration 8.3 (SSA) from 2001 to 2007 and as Associate Commissioner and Deputy Associate Commissioner for Hearings and Appeals at SSA from 1992-2001. Previously, Ms. Geier was General Counsel for the Appalachian Regional Commission (ARC), a Federal-State economic development partnership from 988- 992. Her work at ARC followed nine years with the United States Department of Justice (DOJ) Civil Division, where she was Assistan Director for Commercial Litigation and Senior Trial Counsel, specializing in civil prosecution •Offraud cases. Before DOJ, Ms. Geier was Director of Seattle-King County Legal Services, Regional Director for the Legal Services Corporation (LSC),directing operations in seven western states and Micronesia, and Director of tSC's first research and demonstration office, funding projects nationally to improve the quality and access to legal services for low income people. Sorn in Memphis Tennessee, Ms. Geier graduated from Memphis Melrose High School, and earned her Bachelor of Arts from Fisk University. After earning a Master of Arts in History from the University of Chicago, she returned to Tennessee to teach at Tennessee State University (TSU) in Nashville. Her experience there convinced her that the State of Tennessee continued to maintain a dual and distinctly unequal system of higher education, one for blacks and one for whites. In 1968, Ms. Geier led other TSU faculty and students in filing a class action lawsuit in Federal court seeking eradication of the vestiges of past legal segregation and creation of a unitary system of higher education to provide greater access and equity for African-Americans throughout the state's colleges and universities. The Federal court's order that the State of Tennessee had an affirmative duty to dismantle its dual system became a model for challenges to other higher education systems. throughout the South. During 38 years of Federal litigation and oversight, the State of Tennessee invested approximately $500 million in student scholarships, faculty and administrative hlring and advancement, graduate study, summer preparatory programs, curricula, and campus life changes, and capital improvements, induding $77 million under the 2001 Consent Decree. Ms. Geier earned a juris Doctor degree at Vanderbilt University Law School in 1970. She received the Presidential Rank Meritorious Executive Award from President William Clinton, is a Fellow of the National Academy of Public Adminis ration and continues to work for equal justice and opportunity through numerous organizations, including the Knoxville Area Urban League, the Tennessee Justice Center and the Board of Advisors for Vanderbilt University Law School. 120 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration Item: Renaming of White Hall in Honor of Theotis Robinson, Jr., UTK 8.4 Type: Action In accordance with the Board Policy on Naming of Facilities and Other Assets of The University of Tennessee (BT0008) and the Board-Approved Guidelines for Naming Opportunities and Endowments, Chancellor Donde Plowman recommends the renaming of White Hall. The residential facility opened in Fall 2016 and was given a placeholder name of White Hall. As the campus explores intentional naming opportunities to formally recognize and celebrate the contributions of historically underrepresented individuals or groups to the University community it is proposed that White Hall be renamed Robinson Hall in honor of Theotis Robinson, Jr. The attached letter from Chancellor Plowman provides additional background information, including Mr. Robinson’s accomplishments and outstanding contributions. Resolved: The Board of Trustees hereby approves renaming of White Hall in honor of Theotis Robinson, Jr., in recognition of his many accomplishments and outstanding contributions, as further described in the meeting materials which shall be attached to this resolution. 121 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action THE UNIVERSITY OF TENNESSEE MEMORANDUM KNOXVILLE TO: Randy Boyd, President FROM: Donde Plowman, Chancellor '\J-� 8.4 DATE: January 26, 2021 SUBJECT: Request to Rename Orange & White Residence Halls In accordance with the University of Tennessee Board of Trustees Policy on Naming Facilities and Other Assets, the University of Tennessee, Knoxville requests that Orange Hall and White Hall be renamed in honor of Rita Sanders Geier (Orange Hall) and Theotis Robinson, Jr. (White Hall). Orange Hall and White Hall are two residence halls that were part of the West Campus Redevelopment project. Designed in "pod" style and/or apartment style housing, these residence halls are in demand by our students. Each residence hall has a community kitchen and two study lounges on each floor as well as community laundry facilities. Orange Hall also offers various multip urpose rooms that provide space for holding programs and/or classes. When these two residential facilities initially open in Fall 2016, they were given placeholder names while more permanent names could be presented for campus approval. It has been nearly four years since the halls initially opened, and these placeholder names continue to adorn these facilities. As the campus explores intentional naming opportunities to formally recognize and celebrate the contributions of historically underrepresented individuals or groups to our university community, we respectfully propose that these two residence halls be renamed in honor of Theo t is Robinson, Jr. and Rita Sanders Geier. White Hall would be renamed Robinson Hall, and Orange Hall would be renamed Geier Hall. The attached documents provide context and background information regarding their individual accomplishments and outstanding contributions to our university community. Amidst our desire to create a more welcoming campus community where everyone matters and belongs, we seek to recognize two individuals who worked tirelessly for equal justice for historically underrepresented students on campus and in our state. With your agreement, we request this be submitted for approval at the next Executive Committee meeting of the University of Tennessee Board of Trustees or, at the latest, the June meeting of the University of Tennessee Board of Trustees. If you have any questions, please contact me. Approved By: Randy Boyd, President cc: Cindy Moore Office of the Chancellor 527 Arciy I lo't Tcwier 1331 Ci'cle Pa.-!•: Drhe l BIG 011ANGE. BIG IDEAS/ 122 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Naming of White Hall in honor of Mr. Theotis Robinson Excerpts taken from: Cynthia Griggs Fleming, University of Tennessee Theotis Robinson Jr. first gained statewide attention in 1960 when the University of Tennessee refused to admit him due to his race. The previous spring Robinson, who graduated in June from Austin High School, had participated in sit-in demonstrations to desegregate Knoxville's 8.4 downtown eating establishments. Those sit-ins proved successful: we Iii before the end of the summer desegregation became a fact of life in downtown Knoxville. While Robinson and his fellow civil rights activists were thrilled at their success, they still realized that much remained to be done. That realization prompted Robinson to apply to the University of Tennessee that fall. Initially the school refused to admit him, but after a series of meetings with various school officials, the Board of Trustees allowed him to regist r. Thus, in January 1961 Theotis Robinson Jr. became the first black undergraduate to attend the University of Tennessee. From this "first" Robinson went on to become the first African American to serve on the Knoxville City Council in over fifty years. He was elected to that post in 1969 and he served hrough the end of 1977. Since that time Robinson has continued to serve the Knoxville community in various-capacities including a post as vice-president for Economic Development for the 1982 World's Fair. He later accepted the position of special projects coordinator at the University of Tennessee. In August 2000 the university promoted Robinson to the new position of vice•president for Diversity and Equity. He retired from that role in 2014. In recognition of his commitment to the University of Tennessee, he was awarded an Honorary Doctorate in 2019. Robinson is also a regular contributor to the editorial pages of the Knoxville News-Sentinel. Theo is has been on the forefront of civil rights in the Knoxville Community for many years. He has fought for justice and equality for everyone regardless of their race, gender, national origin, etc. He is the epitome of what we look for in giving this recognition to honor a campus trailblazer. 123 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration Item: Long-term Ground Lease Amendment for a Commercial/Retail 8.5 Development on the Campus of the Health Science Center Type: Action In March 2019, the Board approved the ground lease of 9.7 +/- acres of University property to Memphis Medical District Apartments, GP (“MMDA”) for the development of a 374-unit apartment structure and supporting retail space (“Ground Lease”) to help meet the needs of students and faculty at the UT Health Science Center (“UTHSC”). UTHSC proposes to amend the Ground Lease to: (i) address expenses related to environmental issues, and (ii) add approximately 0.5 +/- acres of property located at 694- 704 Madison Avenue, Memphis, TN, for additional retail development. Environmental Remediation Prior to beginning construction, MMDA conducted due diligence on the University’s property covered by the Ground Lease. The environmental site assessments and soil sampling detected contamination that requires soil remediation, air sampling and vapor barriers. The University and MMDA have worked with the Tennessee Department of Environment and Conservation to develop a remediation plan. As the cost of remediation is estimated to be in the range of $750,000 to $1,000,000, MMDA has requested that the University split the cost to perform the remediation to the University’s property. While MMDA would be obligated to cover the remediation costs under the Ground Lease, the development would not be economically viable given the additional costs associated with the remediation, which was not anticipated by either the University or MMDA. The University Administration seeks the Board’s approval to amend the Ground Lease to provide that the University will pay up to $500,000 for environmental remediation to permit the project to move forward. Retail Development There is a lack of dining, retail and service offerings near the UTHSC campus. In January 2020, UTHSC acquired the Madison Avenue property (“Trolley Stop”), located on the west side of campus and adjacent to property subject to the Ground Lease. UTHSC planned to renovate the Trolley Stop property, which includes an approximate 11,600 square foot building, for the purpose of addressing the identified gap in dining and retail 124 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action services. Given other immediate capital outlay and maintenance needs, UTHSC determined that it would not have sufficient funding to renovate the Trolley Stop in the foreseeable future. UTHSC issued a Request for Proposals to determine if private developers would have an interest in developing the Trolley Stop site. MMDA submitted the only proposal. MMDA’s proposal contemplates developing the Trolley Stop site to contain retail offerings that are complementary to the retail development permitted under the Ground Lease. MMDA has offered to pay ground rent in the amount of $40,000 annually, with a 5% increase every five years. Adding the Trolley Stop to the Ground Lease will permit MMDA to finance, permit and 8.5 develop this property concurrently with the housing development. The guidelines as to the type of permissible retail development, as set forth in the Ground Lease, will extend to the Trolley Stop. The attached term sheet sets out the details associated with the development of the additional retail space. Chancellor Schwab and the Chief Financial Officer recommend approval of the Ground Lease as described herein. Resolved: The Board of Trustees hereby approves an amendment of the Ground Lease entered into by and between the University and Memphis Medical District Apartments, GP (MMDA) in order to document the following revisions: (i) the University and MMDA agree to split, on an equal basis, the cost of environmental remediation associated with the property covered by the Ground Lease, subject to the University’s share of such expenses not exceeding $500,000; and (ii) the addition of approximately 0.5+/- acres of property located at 694-704 Madison Avenue, Memphis, TN (commonly referred to as the Trolley Stop), which shall be developed as additional retail space. The amendment shall be in form and substance consistent with the approvals contained herein as determined by the Senior Vice Chancellor and Chief Financial Officer in consultation with the General Counsel, and subject to all necessary approvals by the appropriate state agencies. The proper officers of the University are authorized to take any and all such actions as may be required or which they may deem necessary or appropriate in order to accomplish the foregoing. 125 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action University of Tennessee Health Science Center Term Sheet Ground Lease Amendment 694-704 Madison Avenue, Memphis, TN 1. Tenant Memphis Medical District Apartments, GP 2. Property 694-704 Madison Avenue, approximately 0.5 +/- acres 8.5 3. Lease Form Tenant has an existing lease (Existing Lease) on the adjacent property with the State of Tennessee on behalf of the University of Tennessee. Tenant and University will incorporate the subject property into the Existing Lease Agreement via an amendment. 4. Lease Term Thirty (30) years with two (2) fifteen (15) year options to extend 5. Permitted Uses Allowable uses subject to Section 10a of the Existing Lease. 6. Annual Rent $40,000 per year with 5% increases every 5 years 7. Tenant Obligations Per Section 5 of Existing Lease 8. Plans and Improvement Per Section 14 of Existing Lease 9. Alterations Per Section 15 of Existing Lease 126 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration Item: Transfer of Property at UTIA AgResearch and Education Center – 8.6 Blount Unit Type: Action UTIA’s East Tennessee AgResearch and Education Center - Blount Unit (“Blount Unit”), was acquired in 1943 and is located on Alcoa Highway, approximately eight miles south of the UT Knoxville campus. This 515-acre property is the primary site for the Center’s registered Angus cattle herd and serves as the Center’s main hub of activity for livestock research, teaching and outreach. The Blount Unit property sits on both sides of South Singleton Station Road. Two infrastructure projects are planned (described below) that will encroach upon and negatively impact the Blount Unit property. The Tennessee Department of Transportation (“TDOT”) and the City of Alcoa, Tennessee (“Alcoa”), with TDOT’s assistance pursuant to the State Industrial Access Program, are seeking to acquire certain portions of the Blount Unit property in connection with each of these projects. Alcoa Highway Expansion TDOT is in the process of expanding Alcoa Highway and has designated 34 +/- acres on the southwest side of South Singleton Station Road of the Blount Unit property (referred to herein as “Parcel #1”) as part of the right-of-way associated with the expansion project. TDOT and the University have each obtained an appraisal for Parcel #1. Project Pearl A new industrial development (“Project Pearl”) is planned between South Singleton Station Road and Pellissippi Parkway. To provide access to Project Pearl, TDOT, on behalf of Alcoa pursuant to the State Industrial Access Program, intends to widen South Singleton Station Road. Based on TDOT’s design, approximately 11 +/- acres of the Blount Unit property contiguous to the road (referred to herein as “Parcel #2”) have been designated for this road expansion project. TDOT is obtaining an appraisal on behalf of Alcoa, and the University will obtain an appraisal. 127 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action The Alcoa Highway Expansion project and Project Pearl will reduce the size of some existing paddocks and render certain boundary areas unusable. Since these actions will negatively impact UTIA’s education and research operations at Blount Unit, the University is seeking consideration at or above fair market value. The University Administration seeks approval for the transfer of Parcel #1 and Parcel #2, individually, for consideration equal to or above the fair market value of such property, subject to receipt of all required State approvals. Resolved: 8.6 The Board of Trustees hereby approves: (i) the transfer to the Tennessee Department of Transportation of Parcel #1, consisting of 34 +/- acres on the southwest side of South Singleton Station Road, which property is a portion of UTIA’s East Tennessee AgResearch and Education Center – Blount Unit (“Blount Unit”), in connection with the Alcoa Highway Expansion project, and (ii) the transfer to the City of Alcoa, Tennessee, of Parcel #2, consisting of 11 +/- acres adjacent to South Singleton Station Road, which property is a portion of the Blount Unit, in connection with Project Pearl. Such approval is conditioned upon the University receiving consideration for each parcel equal to or above its fair market value. Further, such transfers shall be subject to receipt of all required State approvals. 128 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action CL SINGLETON STATION ROAD SIA VARIES 12' 12' 12' 10' 8' TRAFFIC TRAFFIC TRAFFIC 8' 12' GREENWAY SHOULDER LANE LANE LANE SHOULDER E EXISTING GROUND W P EXISTING GROUND FINISHED GRADE R P H N AN E R L EELE S E E S N E U UNDERDRAIN T N T ELL T R R EXISTING GROUND TYPICAL TANGENT SECTION . W R F O OF IMPROVEMENT . R A D O . W EXISTING GROUND L OAD R . 4 W . M A . C R . OAD W . E UNIVERSITY OF TENNESSEE AV O HY . RP MU R T N E S E 1 R P UNIVERSITY OF TENNESSEE PROP P PR .W. CONSTRUCTION R P OP R .O O R PR EASEMENT ESEN O T R 10' G P .O REEN .W. WAY #101651 P O.W. R . R R Y . A P NW O EE AD O R . ' G O O R 10 R . P PR ON . W . ES I 03 . .W OP R.O.W. ENT AT W O PR R.O ST 8.6 . .W . . R PRES ON P . T P ENT T R EN ROP R.O.W LE . O S R.O.W . ING O.W P E . . . S R. RE P PR W . S ENT SEN R O. R.O.W ES T . . SENT PR R.O O T R PRE .03 PROP . AY #101651 W . N EENW R . . W ' G SE 10 . E A . & C.A. & PR . . R.O.W C . W .O.W . C 11 .A R .O . P R . RO P & O 03 S P W R . . . S P . AY N I W N 1 N EE P 3 R O G L ' W 10 . G R 5 #101651.03 . L O R S E P O PROP R.O.W. & C.A. . T P E T R 016 O R N R . N O O E #1 .W AK P P S S . L 11 O PROP R.O.W. P E R T R A . E R R E O S T P P I . N E O W I N N PRE SENT P T R R.O.W. . P R O R . A E O D S .W E .03 . 03 . 1 N . .A .A. T C #10165 & C 01651. & . R #1 W O.W . . R. O .O OP . . R PR W .W 3 OP . .O PR T R EN ES PR #101651 UNIVERSITY OF TENNESSEE R .O . . LETON W 03 SING . N. & P P RD R O ION C TAT O R S . P . A P A . 03 . . C & P . O R .W P O 3 . #101651. .0 .A R 1 C A 65 & P L 01 . R C #1 .W E .O S OA R E N T H R W .O Y . W ( . U #101651.03 PROP. S PERM DRAIN ESMT 129 #1016 ) 51.0 3 PR R.O OP P .W.& R C.A .W. E . R.O ROP S .03 P E P N O #101651 T R R P . . 03 .A O . C . W 651 . & . 1 10 .W # .O R STATE OF TENNESSEE DEPARTMENT OF TRANSPORTATION 11 P BUREAU OF ENGINEERING R CR E S E E BLOUNT COUNTY N S T PINE LAKES GOLF & C SIA: INDUSTRIAL ACCESS P R R E . E O COUNTRY CLUB INC. SERVING N S . W E T N . PROJECT PEARL T D R R . P RIGHT-OF-WAY O O . V W P R . dgn R P . 21 I A - 2 . - 2 . S E it b i xh E C S T 03 U T _ A . I S E T B \ & s it A b N i xh . E l\ 0 200 400 600 r ea T P t ec j R W o r R . P _2_ O T D . O \ O . M P 54 000016952 : \ #101651 J 15 R R : 2 . P \ X W 21 / LE 2 / :\ I . 2 129 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration Item: Disclosure of Additional Revenue/Institutionally-Funded Capital 8.7 Projects for FY 2021-22 and FY 2020-21 Type: Information The University administration has identified additional revenue/institutionally-funded capital projects for FY 2021-22. These projects are in addition to the list of FY 2021-22 projects approved by the Board on June 26, 2020 and they total $15,647,400 and are listed below: 1. UTC – Pedestrian Connectors - $1,512,400 2. UTHSC – GMP Generator & HVAC Upgrades - $1,110,000 3. UTHSC – Madison Plaza Building Improvements - $470,000 4. UTHSC – Van Vleet Biorepository - $555,000 5. UTIA – CVM Renovation & Expansion - $12,000,000 The following projects have been deleted from the list of revenue/institutionally funded projects for FY 2021-22, and will not be included in the amended 2021-22 fiscal year appropriations bill to be passed by the General Assembly. 1. UTK – New Parking Garage - Planning - $700,000 2. UTK – Student Union Retail Renovation - $500,000 Also, additional FY 2020-21 projects totaling $11,907,500 have also been identified. These projects are in addition to the list of FY 2020-21 projects approved by the Board on June 21, 2019 and are listed below: 1. UT – Master Plan Update – Research Park at Cherokee Farm - $75,000 2. UTHSC – Dunn Dental Sewer Line Replacement - $300,000 3. UTHSC – Food Bank Cold Storage - $10,000,000 4. UTIA – WTREC-Greenhouse Replacement - $87,500 5. UTK – 908 21st Street Demolition - $50,000 6. UTK – Chamique Holdsclaw Storm Line Replacement - $225,000 7. UTK – Hodges Library – UT Press - $200,000 8. UTK – Kingston Pike Bldg Improvements - $480,000 9. UTK – Pediatric Language Clinic Demolition - $90,000 10. UTK – Second Creek Stabilization - $400,000 130 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action The Board’s actions in 2019 and 2020 included authorization, with the President’s approval, to enter into design and construction contracts for additional revenue/institutionally funded projects identified during the fiscal year. Accordingly, with the President’s approval, the University sought approval by the Tennessee Higher Education Commission and the State Department of Finance and Administration for these additional projects. In accordance with the Board’s June 21, 2019 and June 26, 2020 8.7 authorizations, these additional projects are reported for information, and no action is required. 131 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration 8.8 Item: Report on Endowment Investment Performance Type: Information Investment of University funds is under the jurisdiction of the Finance and Administration Committee of the Board of Trustees, which makes recommendations to the Board on matters requiring Board action. Prior to each regularly scheduled Board meeting, the Finance and Administration Committee receives for review an investment report provided by the Treasurer and recommends to the Board any actions deemed necessary. At each regularly scheduled Board meeting, the Committee reports its finding and recommendations, if any, to the Board for such actions as the Board deems appropriate. The Report on Endowment Investment Performance for the quarter ended December 31, 2020 is included in the meeting materials. The following table and accompanying appendix provides a summary of endowment distributions by support and business areas. Monies are distributed quarterly as cash transfers to the benefitting unit or department to be used according to their designated purpose. The amounts provided include only those from endowments invested in the Consolidated Investment Pool. 132 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Investment Summary as of December 31, 2020 • Consolidated Investment Pool (CIP) Cash-flow Activity for 12-month Period: o $70 million in New Gifts o $48 million in Spending Plan Distributions o $11 million in Administrative Support • Consolidated Investment Pool (CIP)* and Benchmark 1-year Returns: 8.8 o Trailed Broad Policy B-mark (60/40 stock & bond mix): +9.16% vs +14.01% o Outperformed the Target Weighted B-mark (Multi-asset benchmark): +9.16% vs +4.66% o Outperformed CPI+5.5% (Inflation + Spend): +9.16% vs. +6.87% *CIP returns are estimates. All private-investment returns (roughly 30% of the portfolio) are held at 0% return for the most recent quarter due to lagged reporting. CIP Market Value at Calendar Year-end $1,157 $1,200 $1,070 $965 $955 $1,000 $876 $791 $794 $800 $752 $595 $644 $600 $400 $200 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 133 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action University of Tennessee Performance Dashboard | As of December 31, 2020 Preliminary CIP Performance (%) Trailing 5Y Performance by CIP Asset Class (%) Cumulative Annualized Annualized Annualized Annualized Total Assets 7.4 Trailing Trailing Trailing Trailing Since Public Equity 13.1 1-Year 3-Year 5-Year 10-Year Inception Priva te Equity 6.4 CIP 9.16 6.05 7.36 6.51 8.08 Public Real Estate 4.7 Broad Policy Benchmark 14.01 8.11 9.40 7.30 7.48 Private Real Estate 0.0 Private Infrastructure 8.9 Value Add -4.85 -2.06 -2.04 -0.79 0.60 Private Energy 2.2 8.8 Target Weighted Benchmark 4.66 4.81 6.95 6.30 8.62 Timber/Agriculture -0.3 Private Diversifiers 3.7 Value Add 4.50 1.24 0.41 0.21 -0.54 Public Credit 3.7 Long/Short 4.9 CPI + 5.5% 6.87 7.10 7.31 7.19 7.73 Absolute Return 1.5 Bonds 4.3 Value Add 2.29 -1.05 0.05 -0.67 0.35 Cash 0.2 Actual and Interim Target Allocation Portfolio Liquidity Cash 3.1% Bonds 4.8% Interim Actual Target Allocation Allocation Illiquid Daily Diversifying Public Equity 45.6% 40% 29% 35% Strategies 21.8% Public Private Equity 12.5% 15% Equity 45.6% Real Estate 2.5% 3% Private Natural Resources 9.8% 9% Annual Private Natural 3% Resources Diversifying Strategies 21.8% 24% Semi-Annual 5% 9.8% Private Quarterly Monthly Equity Bonds 4.8% 10% 18% 12.5% 9% Real Estate 2.5% Cash 3.1% 134 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Index & Benchmark Summary: Broad Policy Benchmark: 60.0% MSCI ACWI IMI Index + 39.0% Bloomberg Barclays Global Aggregate Bond Index + 1.0% U.S. 91-Day Treasury Bills This benchmark is intended to assess the overall asset allocation and risk profile of the portfolio. The Bloomberg Barclays Global Aggregate Bond Index consists of a wide range of global investment grade bonds, including sovereigns, corporate bonds, and various asset-backed securities. MSCI ACWI IMI Index includes large, mid, and small-cap stock market exposure across both Developed and Emerging Markets. 8.8 Target Weighted Benchmark: This benchmark is comprised of multiple public and private indices which represent the various asset classes in which the CIP invests. These include equity, real estate, natural resources, hedged strategies, bonds, and cash. The weightings of the underlying indices are dynamic and rebalanced periodically to align with those of the CIP at the beginning of a measurement period. CPI + 5.5%: This is the 1-year inflation-measuring Consumer Price Index + 5.5%. Cambridge Associates (CA) Notes: Notes: Performance is preliminary as of December 31, 2020. Totals may not sum due to rounding. 100% of Private investment performance is as of September 30, 2020. Private investment market values have been updated with capital calls and distributions through the current month. A 0% return is assumed for all private investments for the current quarter. Returns provided by FEG through October 31, 2018. Please note that CA uses CPI – All Urban Consumers as a measure of inflation. The primary data source for information is the investment manager and/or fund administrator, therefore data may not match custodial or other client records due to differences in data sourcing, methodology, valuation practices, etc. Estimated values may include prior quarter end data adjusted by a proxy benchmark or by subsequent cash flows. CA makes no representations that data reported by unaffiliated parties is accurate. 135 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration 8.9 Item: Composite Financial Index Report for FY 2019-20 Type: Information Summary The Composite Financial Index (CFI) developed by Prager, Sealy & Co. and KPMG, utilizes four strategic ratios which are weighted and combined to form a single-digit score. The CFI provides an overall picture of an institution’s financial health and can also be used in shorter term planning and budgeting. Traditional accounting methods are useful for developing historical sources and uses of funds, however they do not facilitate comparison to peers or benchmarks or provide easy measures for stakeholders. The industry standard for the appropriate zone for each ratio is recommended in Strategic Financial Analysis for Higher Education: Identifying, Measuring & Reporting Financial Risks (Seventh Edition), by KPMG LLP; Prager, Sealy & Co., LLC; Attain LLC. Analysis for Fiscal Year 2019-20 To allow monitoring trends in these ratios, each annual report includes three years of CFI analysis. This report provides summary graphs of fiscal years 2018 and 2019 for comparison, and a full report for FY 2020. This report provides each of the four ratios and the weighted CFI for UT Chattanooga, UT Knoxville, UT Martin, UT Health Science Center, and the UT System as a whole. Campus averages, benchmarks and watch indicators are also provided. The CFI was developed for academic campuses therefore the measures do not translate well to System Administration and the Institute for Public Service. However, those units are included in the total University metrics. ∑ Two of the ratios are each weighted at 35% and comprise 70% of the CFI (primary reserve and viability). Both depend heavily on unrestricted net assets. ∑ All institutions and the UT System as a whole have acceptable to strong CFI scores. 136 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action ∑ All four campuses and the system as a whole have strong primary reserve ratios with two campuses and the system above the target benchmark. ∑ Three of the 20 ratios calculated fell within the watch zone. ∑ Three of the campuses are below the benchmark in the viability ratio, but not to the watch zone. ∑ The CFI score for UTM jumped from 1.42 in FY2019 to 4.31 for FY2020. This change is due to timing of revenue received in FY20 for capital projects to be expensed in FY21. The CFI is expected to return to between 1 and 2 in FY21. BACKGROUND 8.9 The four ratios are the primary reserve, net operating revenue, return on net assets, and viability. Primary Reserve Ratio The primary reserve ratio measures the financial strength and sufficiency of resources of the institution by comparing expendable net assets to total expenses. Expendable Net Assets Total Expense Expendable net assets represent those funds an institution can access quickly and spend to satisfy its obligations. Expendable net assets is calculated by total net assets less permanently restricted net assets. This ratio indicates how long an institution could function by using expendable assets without additional operating revenue which provides a measure of financial strength and flexibility. Year-to-year analysis can indicate whether an institution is increasing net worth in relation to its growth in operations. It is recommended this ratio be at least 0.40. However, a lower ratio for public institutions is acceptable. A negative ratio or a decrease over time indicates a weakening financial condition. Net Operating Revenue Ratio The net operating revenues ratio indicates whether total operating activities resulted in a surplus or deficit. Operating Surplus or Deficit Operating Revenue This ratio is an indicator of whether an institution is living within available resources. A large surplus or deficit directly impacts the amount of funds an institution adds to, or subtracts from, net assets. This activity directly affects the primary reserve ratio, the return on net assets ratio, and the viability ratio. Large surpluses may indicate strong financial performance from the year’s activities, but may indicate under-spending on mission-critical investments. An operating loss for the year results in a negative ratio and may be relatively unimportant if the institution is financially strong. The institution should be aware of the causes of the deficit, and implement remedies. Similar to the return on net assets ratio, volatility should be measured over a two to three-year average. A recommended zone is 2% to 4% over the long term. 137 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Return on Net Assets Ratio The return on net assets ratio indicates an institution’s financial strength compared to previous years by measuring total economic return. Change in Net Assets Beginning Total Net Assets The ratio may reasonably be volatile from year-to-year due to several factors. The ratio may temporarily decline if it reflects a strategy to better fulfill the institution’s mission. However, an increasing trend may be the result of planned savings for future planned expansion. Therefore, it is better applied over an extended period. It is recommended the zone be 3% above the consumer price index over the long term; the watch metric isCPI. 8.9 Viability Ratio The viability ratio is fundamental to measuring financial health because it reveals the capacity to repay total debt through available funds. Expendable Net Assets Long-term Debt A ratio of 1:1 or greater indicates that an institution has sufficient expendable net assets to satisfy debt obligations, however this is insufficient for long-term strategic management. There is no absolute threshold that will indicate whether the institution is financially viable. As the viability ratio falls below 1:1, the institution’s ability to respond to adverse conditions from internal resources diminishes, as does its ability to attract capital from external sources and its flexibility to fund new objectives. It is recommended the ratio be at least 1.25:1. 138 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Fiscal Year 2020 Composite Financial Index Ratio Knoxville Chattanooga Martin Health Science Ctr Total University* Campus Bench- Watch PRIMARY RESERVE Weight 35% Average mark Total expendable net assets 726,728,177 47,460,758 49,410,954 101,727,129 1,069,922,087 Total expenses 1,309,609,567 226,078,201 113,258,526 614,824,088 2,391,266,522 RATIO = 0.555 0.210 0.436 0.165 0.447 0.342 0.400 0.130 High NET OPERATING REVENUE Weight 10% Operating surplus or deficit (14,364,202) (6,193,524) 7,674,061 (22,715,065) 9,598,867 Total revenue 1,370,558,071 260,452,116 140,093,686 642,880,493 2,596,364,990 RATIO = -0.010 -0.024 0.055 -0.035 0.004 -0.031 .02 to .04 0.000 8.9 RETURN ON NET ASSETS Weight 20% Change in net assets 60,948,504 34,373,916 26,835,160 28,056,406 205,098,468 Total net assets (beginning of year) 2,257,388,192 276,345,639 129,498,164 467,723,007 3,267,975,031 3%+CPI CPI RATIO = 0.027 0.124 0.207 0.060 0.063 0.105 0.037 0.007 VIABILITY Weight 35% Expendable net assets 726,728,177 47,460,758 49,410,954 101,727,129 1,069,922,087 Long-term debt 770,278,619 118,073,880 61,980,349 73,503,973 1,031,508,424 RATIO = 0.943 0.402 0.797 1.384 1.037 0.88 1.25X 0.40X Knoxville Chattanooga Martin Health Science Ctr Total University* *Includes System Adminstration and Institute for Public Service STRENGTHS AND WEIGHTS WORKSHEET CFI SCORE CFI SCORE CFI SCORE CFI SCORE CFI SCORE Primary Reserve 1.46 0.55 1.15 0.44 1.18 Net Operating Revenue -0.08 -0.18 0.42 -0.27 0.03 Return on Net Assets 0.27 1.24 2.07 0.60 0.63 Viability 0.79 0.34 0.67 1.16 0.87 CFI SCORE (Total of Last Column) 2.44 1.95 4.31 1.93 2.70 2.66 1 to 3 < 1 139 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action Ratio Trends for FY 2018, 2019, and 2020 8.9 140 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action 8.9 141 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action 8.9 UT Compared to the Six Locally Governed Institutions 142 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action AGENDA ITEM SUMMARY Meeting Date: February 25, 2021 Committee: Finance and Administration Item: Fiscal Year 2020 Report on Year-end Fund Balances 8.10 Type: Information At the end of each fiscal year some University unrestricted revenue is carried forward into the next fiscal year for a variety of purposes. All money is included and reported in the audited annual financial statements in the Annual Financial Report. Total carry forward money includes revenue from the current fiscal year and the amounts accumulated from prior fiscal years. Current fiscal year projected year-end balances are reported in the annual operating budget and the revised budget approved by the Board of Trustees. The following six funds are itemized in the annual operating budget. ∑ Working Capital o Required by statute and consists of petty cash, receivables, and inventories. ∑ Revolving Funds o Dedicated to support self-sustaining activities such as service centers. ∑ Encumbrances o Committed to cover purchased goods and services to be received and paid for in the new fiscal year. ∑ Reappropriations o Committed to cover allocations for specific future projects and activities. ∑ Unallocated Auxiliaries o Reserved to provide a “rainy day” fund for auxiliary operations. ∑ Unallocated Education and General o Reserved to provide a “rainy day” fund of 2% to 5% for annual operations. When unrestricted and uncommitted revenue exceeds expenses, operating revenue may be carried forward and accumulated from year-to-year for long-term needs. There are four additional funds outside the annual operating budget containing year-end carry forward money. ∑ Renewal and Replacement o Unrestricted funds accrued as one-time monies to cover both anticipated and unanticipated long-term needs. The funds allow each institution to meet a wide variety of needs and provide reserves for the full operating budget. 143 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action ∑ Unexpended Plant Funds o Committed funds held which are for approved capital projects. ∑ Debt Service o Committed funds held to cover debt service obligations ∑ Quasi-Endowments o Committed funds held as quasi-endowments on behalf of institutions. These categories of funds are common to all Tennessee universities and colleges and are reported uniformly to the Legislature each year. The table below provides a four-year summary of total year-end carry forward balances for all funds. 8.10 Balances Budgeted in the annual Operating Budget (Year-end Actuals) Fund FY 2017 FY 2018 FY 2019 FY 2020 % Chg. FY19 Working Capital $30,269,859 $29,104,516 $28,771.229 $29,782,199 3.5% Revolving Fund 14,434,335 24,571,945 23,886,170 18,929,224 -20.8% Encumbrances 4,427,733 3,436,957 3,510,353 3,490,491 -0.6% Reappropriations 12,232,441 11,890,693 2,244,809 11,779,034 424.7% Unallocated Auxiliaries 9,871,218 10,324,635 9,964,429 9,225,358 -7.4% Unallocated E&G 46,926,158 56,306,804 58,607,852 58,908,865 0.5% Subtotal $118,161,744 $135,635,551 $126,984,842 $132,115,171 4.0% Balances Reported in Annual Financial Statements Fund FY 2017 FY 2018 FY 2019 FY 2020 % Chg. FY 19 Renewal & Replacement $553,567,335 $515,054,687 $579,540,620 $601,349,775 3.8% Unexpended Plant Funds 54,607,375 138,317,754 111,459,306 156,024,078 40.0% Debt Service 32,630,910 44,346,627 35,227,491 40,312,400 14.4% Quasi-Endowments 13,964,620 14,107,006 13,985,044 12,855,664 -8.1% Subtotal $654,770,240 $711,826,074 $740,212,461 $810,541,917 9.5% Total Year-end $772,931,984 $847,461,625 $867,197,303 $942,657,087 8.7% Less Investment in Plant -6,161,641 -8,381,080 -7,200,416 -7,162,487 -0.5% & Interest Payable Less Benefits Liability -314,847,503 -420,261,497 -387,926,710 -358,183,066 -7.7% Total $451,922,840 $418,819,048 $472,070,177 $577,311,534 22.3% Nine of the ten funds are largely committed and well-defined. Renewal and Replacement (R&R) funds comprise about 64% of the annual carry forward and are used for a wide variety of long-term planned expenses and reserves. This annual report includes the amounts of all unrestricted carry forward funds. The report also includes a designation of the level of commitment of all Renewal and Replacement funds. However, due to the Covid-19 pandemic the institutions were not required to categorize the R&R funds by level of commitment. The categorization process is time consuming and R&R funds are likely to have significant fluctuation during the year making it difficult to document specific planned commitments. 144 2021 - Finance and Administration Committee - Consent Agenda - Roll Call Vote/Action The table below provides the FY20 renewal and replacement fund balances by institution. FY 2019-20 Renewal and Replacement Fund Summary No. of Year Institution Accounts Beginning Additions Subtractions Year End Chattanooga 38 $51,864,449 $18,231,408 -$26,628,917 $43,466,940 Knoxville 61 382,039,756 158,782,283 -134,189,834 406,632,205 Martin 25 25,498,761 6,050,410 -2,690,977 28,858,194 Health Science Center 16 10,134,624 9,689,399 -19,824,024 0 Institute of Agriculture 33 57,837,147 10,070,226 -6,131,836 61,775,537 Institute of Public Service 10 8,640,766 2,700,000 0 11,340,766 8.10 UT System 8 43,525,115 23,751,017 -18,000,000 49,276,133 191 $579,540,619 $229,274,742 -$207,465,588 $601,349,775 For the current fiscal year ending June 30, 2021 we will again document the level of commitment for renewal and replacement funding in the following categories. The report is provided to the Board annually at the fall meetings. OBLIGATED Balances held to cover a legal liability/binding agreement with a party external to the University. PLANNED Balances held for a specific purpose as approved by an appropriate University official (president, vice presidents, chancellors, vice chancellors, deans, directors, or designees in accordance with institutional policies or practices). The purpose for which funds are held can range in degree of specificity from a narrowly defined purpose, such as “replacement of the ERP system,” to a broad category, such as “future technology needs.” RESERVES Balances purposefully held for contingencies that must be addressed to ensure the continuation of operations. Reserves are not held to fund known future expenses, but rather to mitigate risks that may result from unexpected funding shortfalls or unanticipated needs. DISCRETIONARY Balances, with no funding source requirements, held to take advantage of strategic opportunities that emerge during the year. 145