Finance and Facilities Committee Meeting February 9, 2024

The Finance and Facilities Committee met on Friday, February 9, 2024 at 10:30 a.m. in the Freeman Center, Room 202 with The Honorable Ronald Tillett presiding as Chair.

Present from the Committee

The Honorable Ronald Tillet
Mrs. Lindsey Carney Smith, Esq.
Mr. John Lawson
Mr. C. Larry Pope
Mrs. Terri M. McKnight, CPA
Ms. Kelli Purdy Meadows
LTC (R) Boris Robinson

Other Board Members Present

Mr. Brent Archer
Mr. William Estrada, Esq.
Dr. Daniel Gade

Other’s Present

President William Kelly
Dr. Quentin Kidd, Provost, Executive Vice President and Chief Academic Officer
Mrs. Jennifer Latour, Chief of Staff
Mrs. Adelia Thompson, Vice President for Advancement, External Engagement and the Arts
Mrs. Lisa Duncan Raines, Vice President for Enrollment, Student Success and Institutional Effectiveness
Mrs. Sara Herzog, Chief Financial Officer
Other CNU faculty and staff members

The Honorable Ronald Tillett, Chair, called the meeting to order and welcomed everyone in attendance. He mentioned that this was the first time the committee had met since some administrative changes had taken place and he wanted to congratulate Mrs. Jennifer Latour who is now the Chief of Staff and Mrs. Sarah Herzog who is now the Chief Financial Officer. They will both be lead staff for the Finance and Facilities Committee moving forward. Chair Tillett also mentioned that Government Relations will remain under Mrs. Latour. We are still in the process of finding a replacement for Ms. Christine Ledford, Vice President of Administration and Auxiliary Services.

Approval of Minutes from the November 17, 2023 meeting

Chair Tillett asked for a motion to approve the minutes from the November 17, 2023 meeting and Mrs. Terri McKnight made the motion for approval that was seconded by Mr. C. Larry Pope, with all in favor.

Chair Tillett introduced Jennifer Latour, Chief of Staff to provide the following report:

General Assembly Status

Mrs. Jennifer Latour, reported that she, along with President Kelly and Tom Kramer have been in Richmond since the first day of the General Assembly Session. She reviewed the biennial budget tracking sheet that shows all Christopher Newport University budget items that have been put forward to either the Governor or to the General Assembly for consideration. Mrs. Latour reviewed the biennial budget and explained that every even numbered year, we develop the biennial budget and every odd numbered year is an amendment to the biennial budget. Mrs. Latour also explained that we requested a language amendment to provide us flexibility to charge out-of-state students less than 100% of the cost of education. Only 6% of CNUs student body is from out-of-state, and having this flexibility would provide us a stronger ability to attract out of state students.

Governor’s Budget Requests (Operating and Capital)

Mrs. Latour reported that Operating requests have been submitted and include student financial aid, funding for the Virginia Military Survivors Dependent education program, safety, security and compliance program, operations and maintenance for new facilities and increased utilities, pathways for VCCS students, technology and cybersecurity enhancements, student success programs, and community and cultural programs. Capital Outlay requests were included in the Governor’s budget. A request for $5 million dollars was made to replace Fume Hood and pressurization valves/controls in our Science Building. Christopher Newport University has received detailed planning funds for the new Plant Operations building and we are now asking for full funding to keep the project moving forward. There was a $3 million dollar ask for furniture, fixtures and equipment (FF&E) for the new Science building. The Maintenance Reserve budget was at $3.7 million and the Governor increased this to $5.4 million which will hopefully stay in the budget.

Relevant Higher Education Bills

Mr. Tom Kramer thanked President Kelly for coming to Richmond once a week to meet with Senators and help to make the requests needed for this General Assembly Session. Mr. Kramer discussed the relevant higher education bills that we are “watching” and he mentioned there are roughly one hundred bills that could impact Christopher Newport University in some way. Mr. Kramer then highlighted the bills that may be relevant to Christopher Newport University and the impact they may have.

Chair Tillett thanked Mr. Kramer for his report and introduced Mrs. Sarah Herzog, Chief Financial Officer to provide the following report:

FY2024 Operating Budget Update

Mrs. Herzog reported that 2023 broke a record for a late adoption of the Governor’s budget so we did not count on additional funds coming forward. Additional funding was approved and we were provided the additional funding in September. The General Assembly approved amendments to include $2.383 million in ongoing base operations funding (“Affordable Access”), $513,000 in ongoing need-based student financial aid, $82,000 additional Maintenance Reserve funds, 2% base salary increase effective 12/10/23 (in 12/29/23 paycheck), and detailed planning funds for replacing the Plant Operations building. The additional operating funds will help to cover the university’s share of the additional salary increase for Education & General areas, focus on a few high priority “one-time” items, and put us in a much better structural position heading into FY 2025. These funds do not alleviate the need to continue the budget savings efforts that began in FY 2024. In addition, 100% of the additional salary increase must be funded for auxiliary functions on our own (athletics, dining, housing, etc.). Mrs. Herzog reviewed the detailed line items with the committee.

Statement of Revenues and Expenditures for the Six Months Ended December 31, 2023

Mrs. Herzog reviewed the Statement of Revenues and Expenditures, noting that total revenues are up from the prior year. The expenses reflect the 5% faculty and staff raise and are level with the expenses from this same time period last year.

Resolution 3: Cancellation of Accounts Receivable Considered Uncollectable

Mrs. Reed, University Comptroller presented Resolution 3: Cancellation of Accounts Receivable Considered Uncollectable to be approved to write off uncollectable debt in the amount of $140,416.22 after failed attempts to collect it. Mrs. Lindsey Carney Smith made the motion seconded by Mrs. Terri McKnight with all in favor. The motion will move to the board for final approval.

Capital Projects Update

Ms. Jennifer Latour thanked Dr. Bob Colvin for covering the Facilities and Campus Operations division while a search is underway to replace that position. The Science and Engineering Research Center will begin steel work in April, with a completion date of October 2025 and a move into the building in Spring of 2026. The New Administration Building opened and staff moved into it in November, the old Sun Trust building will be demolished in April and that area will remain green space.

The Infrastructure Repairs and Improvements include:

Ferguson Center Roof Replacement-reroof the old Ferguson High School sections of the building. Currently under review with the DEB.
Ratcliffe High Roof Replacement-reroof of the area consisting of the High Roof over the second floor and the Low Roof that surrounds it. Currently under review with the DEB.

Future planning projects include:

Replacement of the Plant Operations Building-replacement of the existing plant operations and warehouse building. The RFP’s for this will be sent out next week.

SWaM Report

Mrs. Latour reported that the State Goal for SWaM is 42% and Christopher Newport University is at almost 67% so we have surpassed our goal of 42% for this reporting period.

Adjournment

There being no further discussion the meeting was adjourned at 11:52 a.m.