USF Board of Trustees Finance & Audit Workgroup NOTES Thursday, May 23, 2013 Tampa Campus - Marshall Student Center, Room 3707

Transcription

1 USF Board of Trustees Finance & Audit Workgroup NOTES Thursday, May 23, 2013 Tampa Campus - Marshall Student Center, Room 3707 The meeting of the Finance and Audit Workgroup was called to order by Chair John Ramil at 10:35am. The following members and liaisons were present: John Ramil, Stephanie Goforth (phone), Brian Lamb, Judy Genshaft, Anurag Agarwal, and Brian Keenan. President Genshaft thanked all those on the Board and faculty and staff who worked so hard during the legislative session. USF did well all PECO projects were approved. All worked hard in the community stressing how important these projects are. President Genshaft thanked Mark Walsh, Helen Levine, Pamela Pfeifer, and Casey Welch for their hard work. The President also thanked legislators Will Weatherford, Seth McKeel, Tom Lee, Bill Galvano, and John Legg and commended everyone for working together with USF. Chair Ramil echoed the President s remarks. Action Items: I. Approval of February 28, 2013 Meeting Notes Upon request and receiving no changes to the draft meeting notes, Chair John Ramil requested a motion for approval, it was seconded and the February 28th meeting notes were approved. II Continuation Operating Budget Action: Approval & Authorization of Changes Nick Trivunovich, Vice President for Business & Finance, presented the Continuation Operating Budget. The USF System Board of Trustees (the BOT) is required to adopt an annual budget for the operation of the University. The BOT must approve the budget prior to July 1, 2013 for the State Comptroller to process cash releases of state funds. The universities are still required to submit a detailed operating budget to the BOG by August 19, The Continuation Budget is requested at last year's level with adjustments for reserves, transfers out, and carry forward expenditures. Total Budgeted Revenue is $1.759B and Total Budgeted Expenditures are $1.648B. The USF System will prepare a budget for submission to the BOG by August 19, 2013 and for presentation to the Board of Trustees at a future meeting. Trustee Lamb asked if any changes from the Legislature are included. Mr. Trivunovich responded no. A motion was made to 1) approve the Continuation Operating Budget at last year s level; 2) authorize the President (or the Designee) to make changes as needed between the Continuation Operating Budget and the budget to be submitted to the Board of Governors by August 19, 2013; and 3) authorize the President (or the Designee) to approve other changes such as budget amendments during the fiscal year. The motion was

2 Chair Ramil introduced Mark Lombardi-Nelson, new President of the USF System Student Advisory Council and Trustee. III Preliminary Fixed Capital Outlay Budget Action: Approval & Delegation of Authority Mr. Trivunovich presented the Preliminary Fixed Capital Outlay Budget. This is an annual request and includes unspent funds from previous authority and the anticipated current year amount. Trustee Lamb noted that this budget does align with recent legislative approvals. Major projects approved this session include USF Institute for Heart Health, Interdisciplinary Science Teaching & Research Facility, and College of Business, St. Petersburg Campus. President Genshaft acknowledged the Provost s effort to have the three projects funded. A motion was made to approve the Preliminary Fixed Capital Outlay Budget and to authorize the President, in consultation with the Chair, to make necessary adjustments. The motion was seconded. The motion passed. IV. Five Year Capital Improvement Plan ( / ) Action: Approval & Delegation of Authority Mr. Trivunovich presented the Five Year Capital Improvement Plan. The current plan is similar to last year s plan with a few minor changes. Trustee Lamb stated we need to keep this plan in mind as we move forward we still have work to do on these projects. A motion was made to approve the USF System Five-Year Capital Improvement Plan and authorize the President, in consultation with the Chair, to make necessary adjustments. The motion was seconded. The motion passed. V. DSO/CU Financial Plans and Strategy Statements Action: Approve DSO/CU Financial Plans Fell Stubbs, University Treasurer, introduced the agenda item noting that the annual DSO financial plans are presented to the Trustees for review and approval pursuant to Florida statutes and DSO bylaws. These annual financial plans have been reviewed and approved by the DSO boards of directors and reviewed by University administration. The presentations will focus on cash flow, revenue growth, and capital expenditures. a. USF Research Foundation, Inc. Dr. Paul Sanberg and Patricia Gamble presented the financial plan for USF Research Foundation, Inc. The Research Foundation (RF) has had a good year reduced costs, increased efficiencies, increased revenues. The RF has developed a facility to support Dr. Jeff Krischer and his diabetes research work. There has also been an emphasis on moving industry grants back into the DSO. A decrease in revenue for FY 2014 reflects the completion of a grant from the county to fund Draper s relocation here. A motion was made to approve the Financial Plan for USF Research Foundation, Inc. The motion was

3 b. Sun Dome, Inc. Doug Woolard and Brett Huebner presented the financial plan for Sun Dome, Inc. Completed first year in the new Sun Dome. Global Spectrum manages and books events in the building. We had 145 events in FY were university events; 20 events were televised nationally. Hope to have 150 events in FY Sun Dome ranked 5 th in mid-sized arenas. Facility was rebranded New Day, New Dome. Sun Dome now has a new and dedicated sales force for the loge suites. Brian Keenan asked if the golf course is still under the Sun Dome. Mr. Huebner responded no, it was assigned to USF (as an auxiliary). He also noted that the golf course will show a profit this year. Mr. Woolard stated the golf course is a useful and valued facility for the team. Men s golf team won the Big East Tournament this year. Our team and logo were on the screen at Times Square for a week. The softball team also won the Big East Tournament this year. Mr. Huebner stated that Global Spectrum presents a list for capital expenditures as part of its annual budget process. Nothing was submitted for FY 2014, but something could arise based on the types of booked events. Expect an increase in arena revenues in FY 2014 due to renegotiated Ticketmaster agreement and an increase in university rents (Athletics). Also, in Year 2, warranties expire, so expect some maintenance/repair costs. A motion was made to approve the Financial Plan for Sun Dome, Inc. The motion was seconded. The motion passed. c. USF Foundation, Inc. Joel Momberg and Rob Fischman presented the financial plan for USF Foundation, Inc. The Foundation is completing the largest campaign in USF history and will meet and beat the goal of $600M. FY 2013 was a stellar year for the Foundation. Expecting a $4M cash balance at the end of this year. Realized a 13% portfolio return over the recent 9 months (Q1-Q3); last year the same period had only a 1.13% return. Nothing disclosed in the FY 2014 plan for capital investments. Foundation has no fixed assets, operates in a university building. Trustee Lamb asked if the Foundation is still booking matches from the state. Mr. Fischman responded that the Foundation is not predicting any matches from the state on gifts the program is suspended. Chair Ramil asked if the suspension of the program has hurt the Foundation. Mr. Momberg stated that it hasn t hurt our numbers or our donor support. On the income statement, the decrease in investment income is due to operating pool investments declining. The increase in salaries & benefits is due to vacant positions being filled (no new positions). On the statement of cash flows, the decrease in cash is due to the transfer of gifts to FPU in Trustee Lamb stated that he does not like to see a decrease in cash flows unless it can be attributed to a specific event. Chair Ramil asked about the amount of transfer to FPU. Mr. Fischman responded that approximately $5M will transfer to FPU plus one large gift of $5M for a total of approximately $10.5M. Both amounts are construction related.

4 A motion was made to approve the Financial Plan for USF Foundation, Inc. The motion was d. USF Alumni Association, Inc. Bill McCausland and Melissa Schaeffer presented the financial plan for USF Alumni Association, Inc. Current membership is 23,000; expect to reach 30,000 next year, with increased visibility and awareness of the Alumni Association over the last year. All new graduates become members for one year. Need to focus on retention of new graduates in second year. Established a process to track our graduates, where they are working, etc. License plate revenue is holding steady. Only USF (1%) and UCF (0.5%) saw an increase in license plates this year. A motion was made to approve the Financial Plan for USF Alumni Association, Inc. The motion was e. USF Financing Corp. & Property Corp. Fell Stubbs presented the financial plan for USF Financing Corp. & Property Corp. The Financing Corporation is a conduit financing entity, which issues debt on behalf of the University, and which receives pledged revenues or lease payments from the University's major business units to pay debt service on their capital projects. It is the dedicated bond issuing entity for the University. The Financing Corp. has also invested in INTO USF a 50% equity interest. Only issued fixed rate debt since 2007, and no new debt since Restructuring existing bonds; 60% of outstanding bonds are variable rate. A motion was made to approve the Financial Plan for USF Financing Corp. The motion was f. University Medical Services Assoc. Inc. Dr. Stephen Klasko, Dr. Jeffrey Lowenkron, and Oon Soo Ung presented the financial plan for University Medical Services Assoc. Inc. (UMSA). Healthcare is stable, but FY 2014 will be challenging. Between $10-$12M in the operating account is sufficient to fund the day-to-day operations of the Physician s Group. Moved excess cash to short term investments to realize larger returns. There will be a major change from ICD-9 (current billing codes used/price list) to ICD-10 which increases the number of codes. Everyone must change to ICD-10 (implementation) with no increase in revenue. A motion was made to approve the Financial Plan for University Medical Services Assoc. Inc. The motion was g. USF Medical Services Support Corp. Oon Soo Ung presented the financial plan for USF Medical Services Support Corp. This is a flow thru entity for UMSA. Staffing is non-physician related. MSSC is primarily structured to be a break-even organization; all payroll and operating expenses are funded by UMSA in the form of services revenue. The projected operating loss in FY14 is due to unfunded depreciation for the three facilities.

5 A motion was made to approve the Financial Plan for USF Medical Services Support Corp. The motion was h. USF Health Professions Conferencing Corp. Dr. Stephen Klasko and Greg Vannette presented the financial plan for USF Health Professions Conferencing Corp. (USF HPCC). A large part of the historical cash flow has been traditional CME this is no longer a viable revenue source. HPCC is an economic engine for Tampa generates 8,000 room nights in Tampa. CAMLS revenue will grow 25% in FY14. Robotics training has doubled in size and more than doubled its revenue from greater utilization. Becoming a leading robotics training center. HPCC is expanding its core business and achieving healthcare and hospital efficiencies. The Tampa Bay Research and Innovation Center has been retooled and is generating a growing stream of revenue from product validation, 3-D printing and preclinical testing. These innovative public/private partnerships hold great promise for the growth of CAMLS and Florida in the global economy. HPCC faces the following challenges: draw down of cash; and competitors are not academic, but entrepreneurial. The projected operating loss in FY14 is due to depreciation on equipment. A motion was made to approve the Financial Plan for USF Health Professions Conferencing Corp. The motion was Mr. Long stated that the annual DSO plan disclosure of current year and future year is not enough information for trend data. So we will implement a 3-year format going forward to see trend data, not just next year data. Information Item: VI. FY USF System Financial Statements (final) Jennifer Condon, new University Controller, presented the final FY USF System Financial Statements. The statements were finalized in March. Received an unqualified opinion. No material weaknesses identified. There were a few minor reclassifications, but no impact to bottom line. Other Mr. Long noted that USF Purchasing is hosting a Supplier Diversity Conference today. Over 100 vendors signed up to attend. This provides the ability to compete and is an educational outreach program for the community. Chair Ramil would like to see a new economic impact analysis to include CAMLS. Dr. Klasko stated that the driver for health in Florida will be USF. Chair Ramil thanked everyone again for a successful legislative session. He also congratulated the men s golf team and the softball team for their Big East Tournament wins and wished good luck to the baseball team currently playing in the conference tournament. Having no further business, Chair Ramil adjourned the Finance and Audit Workgroup meeting at 12:25pm.