Finance and Facilities Committee Meeting June 11, 2021

The Finance and Facilities Committee met on Friday, June 11, 2021 at 8:30 a.m. in the David Student Union Boardroom, with Chair Bruce Jennings presiding.

Present from the Committee

Mr. W. Bruce Jennings, Chair
Mr. William R. Ermatinger
Mr. Robert R. Hatten, Esq.
Ms. Maria Herbert
C. Bradford Hunter
Mrs. Terri M. McKnight, CPA
Mrs. Lindsey Carney Smith, Esq.

Present from the University

Mrs. Ashleigh Andrews, Assistant Vice President for Finance and Planning
Mr. Andrew Crawford, Chief Information Officer
Mrs. Sarah Herzog, Director of Planning and Budget
Ms. Rachel Holland, Associate Professor/Dept. Chair of Music
Mrs. Jennifer Latour, Vice President for Finance and Planning/CFO
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Adelia Thompson, Chief of Staff
Ms. Deborah Roundtree, Special Assistant to the Chief of Staff
Mrs. Rhonda Wissinger, Executive Assistant

Public in Attendance

None

Overview of Committee

Chair Jennings gave an overview of the committee, given it is a new committee with its charge recently updated in the Bylaws.

The charge as stated in the Bylaws states, “this Committee is responsible for oversight of the fiscal policies and physical assets of the University. It shall be the duty of this Committee to consider and make recommendations to the Board concerning fiscal policy and financial planning for the University. The Committee shall regularly report to the Board all information necessary to aid in meeting its fiduciary responsibilities to the Commonwealth of Virginia and the University. It shall also be the duty of this committee to consider and make recommendations to the Board concerning the development, maintenance and preservation of the physical facilities and grounds of the University.”

Review of Minutes from the April 16, 2021 Joint Finance and Audit and Building and Grounds Committee meeting

Chair Jennings asked if everyone had a chance to review the minutes from the April 16, 2021 joint Finance and Audit and Building and Grounds meeting and asked if there were any edits to be made to the minutes. No edits were needed. Chair Jennings introduced Mrs. Jennifer Latour, Vice President for Finance and Planning/CFO to provide the following report:

Statement of Revenues and Expenditures for the Nine Months Ending April 2021 and 2020

Ms. Latour reported there are currently $5 million more than current budget which is a result from Federal Stimulus funds.

FY22 Budget Presentation

Mrs. Latour presented the $178.1 million operating budget for FY 2021-22 recommended to the Board of Visitors for approval. The operating budget includes an increase in general fund support for the Educational and General program, a decrease in tuition and fees revenue, savings in auxiliary debt service due to the Commonwealth’s restructuring and refinancing of bonds, and a substantial increase in student financial aid through the federal stimulus programs.

The State has provided $2.4 million in on-going support, initially provided in FY21 as one-time funding, with the flexibility to address operational needs, to enhance financial aid, or to address the impacts of the COVID-19 pandemic. In addition, $895,000 was provided in FY 2021-22 to address unavoidable cost increases and required spending.

There was discussion regarding the importance of private funds supplementing the university budget. Mr. Robert Hatten requested that the Presidents of the Education and Real Estate Foundations be invited to the September Board meeting to give the Board an overview.

The budget will support the goals and priorities of the University. Mrs. Latour reviewed expenditures, faculty and staff salary increases, reserve funds and other operating expenses.

Resolution 2: FY22 Operating Budget

At the conclusion of the budget presentation, Mrs. Latour presented Resolution 2: FY22 Operating Budget.

Ms. Maria Herbert made the motion to adopt the resolution and Mr. William Ermatinger seconded, with all in favor. This resolution moved to the full board for approval.

Capital Projects Update

Ms. Ledford reported the Fine Arts Center is nearing completion. Most of the “punch list items” have been taken care of and should be completed by September. The new fountain is under construction with an anticipated completion date of August 2021. The improvements to the roof of the David Student Union have been delayed as there were other building issues found that needed to be addressed first. The State also gave us $11 million to upgrade the chiller plant, facilities maintenance roof and chiller replacement, Ferguson Center roof replacement, replacement of Ratcliffe water heaters and high roof.

SWaM Report for the Nine Months Ending April 30, 2021

Ms. Ledford reported the SWaM target goal is 42%, Christopher Newport University is slightly below our goal, currently at 41.22%. This compares favorably to the state at 29.6%. We will be having our annual SWAM fair in November.

There being no further discussion the meeting was adjourned at 9:56 a.m.