Approval of Minutes

Minutes of the meeting of December 18, 2001 were approved as distributed with one correction. The corrected minutes will be put on the Committee website.

Access to Financial Information

Mr. Steve Hinnenkamp, Director of Financial Systems, Controller's Office, made a presentation of the newest web-based financial reporting system, Access to Financial Information (AFI.) AFI is currently for sponsored accounts only and established for principal investigators and administrators to gain access to timely data. Mr. Hinnenkamp discussed security issues to AFI and demonstrated the various reports that the system offers.

The Committee discussed the training program as Chairman Steinwachs commented that training for AFI should be a part of the junior faculty program. Chairman Steinwachs asked if the system was capable of tracking users and Mr. Hinnenkamp stated that this was not currently available. Dr. Brunyate asked what the timeframe was for all accounts to be accessible via AFI. Mr. Hinnenkamp responded that the next phase, AFI 2, would include access to non-sponsored accounts and is being designed.

Fiscal 2002 Operating Results as of December 31, 2001

Key revenue indicators as of December 31, 2001 were presented to the Committee. The key points are:

Tuition revenue is currently $6.1 million (2.2%) higher than budget but projected to be at $1.8 million ahead by year- end. Some tuition revenues have been received earlier than expected. Increase of 8.6% over this time last year. Dr. Kelen asked if there were any downturns in enrollments due to the events of September 11th. Provost Knapp responded that, to date, a decline was not felt widespread. The only program that experienced an enrollment decline directly attributable to the attacks was the part-time business program in the School of Professional Studies.

Facilities & administrative cost recoveries are 8.7% more than projected and 10.3% higher than this time last year. All research divisions experienced significantly better recoveries than budgeted. Recoveries are projected to be $10.3 million ahead of budget by year-end. Organized research base is $5.5 million (3.6%) more than budgeted. This represents 14.3% growth over FY2001. This base is projected to exceed budget by 10.9% by year-end. Other sponsored activity base is consistent with budget and is 13.6% greater than FY 2001. This base is projected to exceed budget by 7.7% by year-end.

Clinical services revenue is $100.3 million and is 2.7% higher than budgeted. This is $5 million (5.3%) higher than last year at this time. Clinical services revenue is projected to exceed budget by $6.4 million or 3.2%, by year- end.

The Committee also reviewed the sources and uses of funds through December (TABLE 1). The University financial posture is better than budgeted and is comparable in that respect to the same period last fiscal year. Through December, the total operating surplus is $162.9 million compared to an anticipated surplus of $82.3 million. The general fund operating surplus is $111.8 million, an increase of $28.2 million over the projected surplus of $83.6 million. This increase is due primarily to more robust facilities and administrative cost recoveries, higher than expected clinical revenues and tuition revenues and lower expenditures. In the sponsored and designated funds, the University reports a $51.1 million operating surplus instead of the projected $1.2 million shortfall. The Sidney Kimmel gift to the School of Medicine explains most of the variance. The University projects a $3.4 million surplus at year-end, consistent with budgeted amounts ( TABLE 2). Revenues are projected to be 1.9% over budget and expenditures are projected to be 1.5% over budget. At this time all divisions expect to finish the year with their budgeted bottom lines (TABLE 3).

Fiscal 2003 Budget Assumptions

The Committee reviewed the fiscal 2003 tuition recommendations for undergraduate, graduate, doctoral and part-time programs. The recommended level of undergraduate tuition and fees for the Homewood schools is $27,390, which is a 4.5% increase over last year. The anticipated room and board rate is $8,829, which is a 3.8% increase over last year. Therefore, the total cost to attend the Homewood campus would be $36,219. Tuition recommendations for doctoral, graduate and part-time programs were also discussed. Recommended increases are generally 4.5% or below. Exceptions include the part-time MLA program offered by the School of Arts & Sciences, which is proposing a 12.3% increase in order to more closely align this tuition fee with School's writing program. The School of Medicine recommends a 6% increase in tuition for those M.D. students entering fall 2002. This cohort group will remain at $29,800 for the next four years.

The Schools of Arts and Sciences and Engineering are considering a mandatory fee for health insurance for graduate students. These students are required to have and show proof of health insurance coverage and this is becoming an increasing financial burden ($900 per year) on many students. Further, by allowing policies to lapse after enrolling, many students are actually uninsured. When fully implemented, the Schools will fully subsidize graduate student health insurance and thus achieve universal coverage.

The Committee also discussed a summary of the assumptions for the fiscal 2003 budget and plan. The State's fiscal condition puts Maryland State aid at risk. The divisions have been advised to develop a contingency plan for a possible fiscal 2002 reduction (a maximum risk of 25%) and no increase in fiscal 2003.

Salary budgets are generally not to exceed 3.5% plus an additional 0.5% targeted at the lower pay grades where salaries fall below market rates. This does not take into account promotions and retention issues. The personnel benefits rate for fiscal 2003 was previously negotiated at 29.0%.

The on-campus organized research rate is 63.5% of which 57% is budgeted for operations and 6.5% is budgeted for one-time uses such as capital projects and faculty recruitment.

Endowment distribution is a 4.0% increase from fiscal 2002 and maintains the overall payout rate at 5.0% of the trailing three-year average market value. Administration responded to a question concerning payouts on new endowments by confirming it was working with the divisions to address payout issues in FY 2002.

Capital Projects

Dr. McGill provided an update on the University's capital projects. He spoke specifically about several major projects that are in various phases of development. Large Homewood campus projects include the San Martin Center, Gilman Hall renovation, a new chemistry building and Hodson Hall. The East Baltimore campus projects include the Broadway Research Building, and additions to the Bloomberg School of Public Health to house the Malaria Institute and other research. Other large projects include the Montgomery County Campus Building III and the Peabody Institute renovation.

Divisional Faculty Salaries

Dr. Parrott and Dr. Brunyate presented divisional faculty salaries information. The peer group for the School of Advanced International Studies (SAIS) consists of selected Association of Professional Schools of International Affairs (APSIA), including Columbia, Georgetown, George Washington, Princeton and Tufts. The APSIA data suggests that SAIS is competitive with respect to salary.

The peer group for the Peabody Institute consists of schools in the National Association of Schools of Music (NASM), including Cleveland Institute, New England Conservatory, Boston Conservatory, and San Francisco Conservatory. Dr. Brunyate indicated that some of the presented data was suspect or inferred and offered to obtain further clarification at a future Committee meeting.

Associate Provost James Zeller updated the Committee on the status of the other divisional presentations. Data for the School of Arts & Sciences, School of Medicine and School of Professional Studies was distributed and would be formally presented by a Committee member at the May meeting. The Schools of Engineering, Public Health and Nursing are still in process of obtaining their data with hopes of presenting their information at the May meeting as well.

The next committee meeting is scheduled for Tuesday, May 14, 2002, 3:00 p.m., at the Shriver Hall Board Room.

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Last updated 17Jun02 by dgips@jhu.edu