south carolina ms. dianne c. kuhl, vice chair mr. tim m
TRANSCRIPT
_______________________________________________________________________________________________________________________ 1122 Lady Street ♦ Suite 300 ♦ Columbia, SC 29201 ♦ Phone: (803) 737-2260 ♦ Fax: (803) 737-2297 ♦ Web: www.che.sc.gov
Mr. Tim M. Hofferth, Chair Ms. Dianne C. Kuhl, Vice Chair
Mr. Paul O. Batson, III Mr. Devron H. Edwards
Dr. Bettie Rose Horne Mr. Kenneth W. Kirkland
Ms. Allison Dean Love Dr. Louis B. Lynn
Vice Admiral Charles Munns, USN (ret.) Mr. Kim F. Phillips
Ms. Terrye C. Seckinger Dr. Evans Whitaker
Mr. Gary S. Glenn Interim Executive Director
South Carolina Commission on Higher Education
TO:
FROM:
SUBJECT:
DATE:
Ms. Dianne Kuhl and Members of the Finance & Facilities Committee
Mr. Edward Patrick, Director of Fiscal Affairs
Committee Meeting, April 6, 2017
March 30, 2017
A meeting of the Finance & Facilities Committee is scheduled to be held in the Commission’s Main Conference Room at 9:30 a.m. on Thursday, April 6. The agenda and materials for the meeting are enclosed.
*To access the Teleconference, enter: 800-503-2899; Access Code: 737-4620
If you have any questions about the materials, please contact me at (803) 737-2228.
Enclosures
COMMITTEE ON FINANCE & FACILITIES APRIL 6, 2017
9:30 A.M. MAIN CONFERENCE ROOM
SOUTH CAROLINA COMMISSION ON HIGHER EDUCATION 1122 LADY STREET, SUITE 300
COLUMBIA, SC 29201
AGENDA
1. Introductions
2. Approval of Minutes
A. Approval of Minutes of Meeting on March 2, 2017
3. Interim Capital Project
A. Clemson University1. Business and Behavioral Sciences Building/ Sirrine Hall Replacement
- Increase Construction Budget
4. Lease Approvals
A. Medical University of South Carolina1. 165 Cannon Street Garage2. 22 WestEdge
5. Other Business (For Information, No Action Required)
A. List of Capital Projects and Leases Processed by Staff for February and March
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Agenda Item 2.A Finance and Facilities Committee
MINUTES COMMITTEE ON FINANCE AND FACILITIES
MARCH 2, 2017 10:30 A.M.
MAIN CONFERENCE ROOM SOUTH CAROLINA COMMISSION ON HIGHER EDUCATION
1122 LADY STREET, SUITE 300 COLUMBIA, SC 29201
For the record, notification of the meeting was made to the public as required by the Freedom Information Act.
I. Call to Order
Commissioner Kuhl called the meeting to order at 10.38 a.m. Ms. Myers introduced guests in attendance.
Commissioner Lynn thanked the members of the Committee and staff for their collective and individual support and kind words during the recent passing of his father. Commissioner Kuhl expressed to Commissioner Lynn that he was in our thoughts and prayers.
II. Approval of Minutes of Meetings
Commissioner Kuhl asked if there were any questions regarding the minutes for the meetings of December 1, 2016, December 16, 2016, and February 14, 2017.
With there being no questions, a motion was made (Phillips), carried (Kirkland) to approve the minutes of the December 1, 2016, December 16, 2016, and February 14, 2017 meetings.
III. Other Business
The following items were presented for information only:
A. Commissioners’ Cumulative Expenditures
Committee Members Present Commissioner Dianne Kuhl, Chair Commissioner Ken Kirkland Commissioner Paul Batson Commissioner Louis Lynn Commissioner Kim Phillips
Guests Present Chairman Tim Hofferth Commissioner Allison Love Ms. Beth Bell Mr. Michael Hughes Mr. Rick Kelly Ms. Carol Routh
Staff Present Mr. Edward Patrick Ms. Carrie Eberly Ms. Yolanda Myers Mr. Morgan O’Donnell Ms. Monica Goodwin
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Mr. Morgan O’Donnell presented a summary of board expenses for January, 2017. He stated that this report will be beneficial to the Commission and the public in understanding the fiscal impact to the agency. Mr. O’Donnell noted that there was a discrepancy in the total of the Commissioners’ Other Meeting category expense column and that it will be corrected.
B. Capital Projects & Leases Process by Staff
Mr. O’Donnell reviewed a list of projects approved during the months of December, 2016 and January, 2017. Mr. He explained the process for approving capital projects and noted that in order for an institution to receive the funds given by the legislature, (for example, Capital Reserve Funds,) a project must be created and submitted specifically for that fund. Members of the committee asked for an explanation on determining caps on these types of projects. Mr. O’Donnell explained that there is no cap on funding given by the legislature and that institutions are approved for the amount authorized.
Commissioner Kuhl asked for an update on Commissioner Lynn’s previous request of a list of outstanding capital projects submitted prior to implementing the new financial matrix guidelines. Mr. Edward Patrick stated that the staff has completed the list and it will be forwarded to the committee.
C. Quarterly Budget Report
Mr. O’Donnell presented a summary of the Quarterly Budget Report as of January, 2017. He stated that the budget report is tool used to help monitor the progress of the entire agency’s budget. Mr. O’Donnell further stated that the commission’s budget was trending on target and he does not expect any overspending in budget categories. However, he did note that we sometimes run into issues with advancing scholarship funds because of the way the lottery funds come to the commission. Mr. O’Donnell explained that the lottery funds are forwarded to the commission on a quarterly basis and traditionally we send out 50% of the lottery funding by the end of the fall semester. He stated that we would probably hold some scholarship funding requests for the spring semester until the commission receives sufficient funding. He shared that in prior years, the commission had general funds that could compensate for the cash flow deficit from the scholarships. This is no longer possible because the general funding was moved to the lottery.
Commissioner Kuhl asked, “what steps are we taking for the upcoming semester?” Mr. Edward Patrick stated that if the commission does not have the cash at the time of requests for funds, the agency cannot pay it at that time.
Chairman Hofferth asked if the flow of money from the lottery was based on prior years. Mr. O’Donnell replied that money from the lottery is based on the current year. Chairman Hofferth stated that switching from the general funds was one of his concerns because of unpredictable outcomes from ticket sales. He further stated that the commission should have a contingency plan in case of shortfall for prior commitments. Mr. Patrick stated that the staff will follow up on the actual commitments. Mr. O’Donnell suggested that we have the Lottery Commission present their forecast. Chairman Hofferth suggested we that pose the following questions to the Lottery Commission: (1) How many students are currently eligible? (2) What is the current gap? and (3) How many students are in the pool? Mr. Patrick suggested that we also inquire about what other obligations are on the lottery funding.
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Commissioner Kirkland asked what happens to students who were already obligated to use these funds and funding does not materialized during that calendar year. Mr. Patrick replied that there are two options (1) institutions could deny students from enrolling if they are unsure about the funding or (2) institutions could commit to taking on the cash deficit from their budget until the funds become available.
Commissioner Kuhl also suggested that we look at the number of lottery students at our institutions and what impact it would have on institutions if the funding is not available. Mr. O’Donnell stated that historically, if the lottery did not have sufficient funds, there was a transfer from the general fund at the end of the year to avoid the negative financial impact to the institutions.
D. Tuition and Fees Data
Ms. Carrie Eberly presented the fall data for the Tuition and Required Fees for Academic Year 2016-17. She stated that each sector increased an average between 3-4% and the entire state averaged about 3.5%. Ms. Eberly stated that there was an error on the committee mail-out materials for The Citadel. A medical fee of $495 was duplicated across all categories of students. She stated that the committee materials on the website have been updated to reflect this change.
Commissioner Batson asked for clarification on the fees and if we are looking at the different program fees as well as standard fees. Ms. Eberly stated that as we progress through building the report, we are looking to see if the institutions are disclosing all of the extra fees so that the information is accessible to everyone.
Commissioner Kuhl shared that she and Commissioner Kirkland had a productive meeting with the Commission’s finance staff and the Department of Administration’s Executive Budget staff about the financial matrix.
There being no further business, Commissioner Kuhl adjourned the meeting at 11:33 a.m.
Respectfully submitted,
Yolanda L. Myers Recorder
*Attachments are not included in this mailing but will be filed with the permanent record of these minutes and areavailable for review upon request.
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Executive Summary – Clemson Project Proposal
The construction of a new Business and Behavioral Sciences Building to replace Sirrine
Hall (built in 1938) is on Clemson’s Master Plan and was originally put on the CPIP in
FY 2015. This is a project that was initially approved by Clemson’s Board on October
9, 2015 (Phase I) and Phase II was approved by the Clemson Board in February 2017.
Clemson has consistently demonstrated prudence in maintaining their overall campus.
This was observed during the campus site visit and is further evidenced in the Financial
Indicator Matrix analytics in the Expense and Maintenance Reserve sections where
adequate annual Plant Maintenance expenses were incurred and sufficient Maintenance
Reserves balances are available.
In the Expense analytics, it was noted that expenses increased over the ten-year period
by 54%, while during the same period, Scholarship expense increased by 322% from $6
million to $26 million. Also, Plant expense increased by 92% during this same period
going from $37 million to $71 million.
The overall risk assessment for Clemson is low, which is the best assessment possible
under the new guidelines. There were no negative trends noted in the Financial
Indicator Matrix data, and no indication of neglect observed during the campus on-site
visit. The instances of less favorable outcomes were reasonably explained and noted by
the staff.
Agenda Item 3.A Finance and Facilities Committee
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Clemson Project Risk Assessment
Maintenance
How does the institution budget for annual routine maintenance?
Clemson has maintained an adequate maintenance reserve that is dedicated to the
upkeep of current and future capital assets. The total maintenance reserve balance as of
June 30, 2016 was $105.4 million ($81.6 million for E&G assets and $23.8 million for
auxiliary assets). In addition, Clemson expensed $70.7 million in Operation &
Maintenance of Plant as denoted in the Expense section. During the tour of the campus,
there were several older buildings that required renovating, but no evidence of neglected
structures was noted.
Maintenance Risk Assessment: Low Risk
Source of Funds
Readily available and traceable?
The source of funding is 100% State Institution Bond (SIB). Currently, Clemson has
adequate debt capacity to take on this debt. The total debt service for this project will
not exceed $5.7 million over the 20-year bond term. The current debt capacity is $20
million.
Effect on student affordability?
Tuition is a source of funding as it should be for the construction of an academic
building. There is no need to increase tuition to fund the incurred debt service for this
project based on Institutional Reserve Balance and Budget to Actual analytics. The risk
of Tuition revenue decreasing due to a drop in enrollment appears minimal based on the
10-year trend of 3.6% average annual increase in enrollment and an 8% Net Tuition Revenue increase over the same period.
Source of Funds Risk Assessment: Low Risk
Financial Stability
Clemson has consistently shown over the ten year period from FY 2007 to FY 2016 that
their institution is financially stable. There are favorable trends related to increasing
Revenue that consistently exceed increasing Expenses, E&G Change in Net Position
that has been negative only two of the ten years where one year was planned to make
strategic infrastructure improvement, renovations and additional academic offerings,
and in 2009 when appropriations were suddenly and significantly reduced. Please note
that in the 10-year period, consolidated Change in Net Position increased each year.
Liquidity and Debt ratios are consistently strong.
Financial Stability Risk Assessment: Low Risk
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Clemson UniversityRevenue AnalyticsAll Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Tuition and Fees (Gross) $224,319 $242,659 $266,199 $293,619 $315,701 $334,504 $359,496 $377,843 $401,913 $434,408Sales and Services $101,653 $107,636 $114,291 $117,913 $121,317 $132,306 $143,425 $153,026 $162,648 $198,245Grants and Contracts $105,139 $117,001 $125,604 $122,160 $123,394 $119,746 $126,085 $128,082 $132,997 $144,084State Appropriations $150,335 $167,224 $128,279 $114,120 $91,917 $88,780 $92,784 $99,591 $106,345 $108,812Federal Appropriations $9,667 $14,186 $12,317 $11,269 $11,744 $11,507 $10,948 $10,566 $11,338 $11,632Gifts and Grants $34,413 $39,020 $40,293 $59,473 $68,797 $59,127 $56,403 $62,951 $92,828 $87,225Other $42,548 $27,819 $13,360 $54,537 $57,886 $34,876 $47,499 $62,229 $43,418 $32,808Total $668,074 $715,545 $700,343 $773,091 $790,756 $780,845 $836,641 $894,289 $951,487 $1,017,214
7.1% -2.1% 10.4% 2.3% -1.3% 7.1% 6.9% 6.4% 6.9%
Revenue has been trending favorably with an average increase of 4.9% over the past ten years and a total increase of 52.3% over the same period. As expected, Tuition revenue is the primary revenue source averaging 40% of total revenues over the past ten years.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenue Trend
Tuition and Fees (Gross) Sales and Services Grants and Contracts State Appropriations
Federal Appropriations Gifts and Grants Other Total
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Clemson UniversityDebt Capacity AnalysisExcess Debt Service All Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 201690% Pledged Tuition $10,747 $13,981 $17,646 $18,444 $18,925 $20,196 $22,233 $24,738 $26,621 $30,366SIB Debt Service $6,056 $5,973 $5,981 $5,980 $7,056 $8,128 $8,478 $8,164 $10,699 $10,397Available for Debt Service $4,691 $8,008 $11,665 $12,464 $11,869 $12,068 $13,755 $16,574 $15,922 $19,969
The debt service associated with the Business and Behavioral Sciences Building will not exceed $5.7 million. The annual available debt service of $20 million as of June 30, 2016 is more than adequate for Clemson to take on this debt with minimal risk of exceeding the maximum debt service or 90% of pledged tuition.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Debt Capacity
90% Pledged Tuition SIB Debt Service
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Clemson UniversityEnrollment AnalyticsFTE (Based on Credit Hours)
Undergraduate FTE2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Freshman 3,290 3,446 3,522 3,249 3,120 3,525 3,355 3,377 3,350 3,549 Sophomore 3,215 3,236 3,611 3,671 3,788 3,786 4,269 4,413 4,589 4,587 Junior 3,139 3,372 3,383 3,666 3,713 3,806 3,882 4,282 4,331 4,591 Senior 3,922 4,041 4,268 4,378 4,737 5,063 5,106 5,121 5,657 5,826 Unclassified Undergraduate 49 48 52 38 71 83 67 62 94 76 Total Undergraduate FTE 13,616 14,143 14,836 15,001 15,429 16,264 16,679 17,255 18,022 18,628
Graduate FTE 3.9% 4.9% 1.1% 2.9% 5.4% 2.5% 3.5% 4.4% 3.4%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Graduate 2,642 2,878 3,037 3,277 3,380 3,412 3,519 3,558 3,627 3,670 Specialist 8 6 3 3 13 16 17 18 19 18 Total Graduate FTE 2,650 2,884 3,040 3,280 3,392 3,428 3,537 3,576 3,647 3,687
8.9% 5.4% 7.9% 3.4% 1.1% 3.2% 1.1% 2.0% 1.1%
TOTAL FTE ENROLLMENT 16,266 17,027 17,876 18,281 18,821 19,692 20,216 20,831 21,668 22,316 4.7% 5.0% 2.3% 3.0% 4.6% 2.7% 3.0% 4.0% 3.0%
Clemson undergraduate enrollment growth has been steady averaging 3.6% over the ten year period.The freshman class has consistently been the smallest class in the same period due to much of theincoming students having AP credits that qualify them to be in the sophmore class upon arrival.The senior class is consistenly the largest as this includes all students who have been at Clemsonfor four or more years. Due to a focus on internships, several students exceed the four year period.Clemson graduate enrollment has averaged 3.8% growth over the ten year period. In the past three years, enrollment has flattened to a three year average of 1.4%. This is driven by facility capacity andprogram demand.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Undergraduate FTE
Freshman Sophomore Junior
Senior Unclassified Undergraduate Total Undergraduate FTE
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5,000
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total FTE
Total Undergraduate FTE Total Graduate FTETOTAL FTE ENROLLMENT
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Clemson UniversityTuition AnalyticsAll Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Tuition & Fees ("All Fees") $224,319 $242,659 $266,199 $293,619 $315,701 $334,504 $359,496 $377,843 $401,913 $434,408Waivers & Abatements - Undergraduate 10,459 12,412 15,671 16,448 17,675 17,719 20,551 21,484 25,035 28,373 Waivers & Abatements - Graduate 24,503 24,972 25,032 25,399 26,612 26,034 26,409 28,337 27,727 29,510
Net Tuition 189,357 205,275 225,496 251,772 271,414 290,751 312,536 328,022 349,151 376,525 8.4% 9.9% 11.7% 7.8% 7.1% 7.5% 5.0% 6.4% 7.8%
Net tuition has increased over ten years at an average of 8% while waivers and abatements have increased for under by 17.1% for undergraduates and 2% for graduate students in the same period.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tuition Trend
Tuition & Fees ("All Fees") Waivers & Abatements - Undergraduate Waivers & Abatements - Graduate Net Tuition
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Clemson UniversityExpense AnalyticsAll Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Instruction $159,318 $176,166 $173,423 $175,249 $178,644 $181,146 $201,731 $216,977 $227,483 $233,589Research $112,141 $127,428 $125,623 $126,972 $124,837 $123,594 $130,787 $133,563 $139,399 $146,516Public Service $60,951 $72,648 $68,508 $62,390 $59,083 $57,889 $59,837 $63,542 $65,814 $65,362Academic Support $43,104 $38,647 $35,776 $37,182 $35,321 $36,715 $38,926 $42,231 $47,633 $46,018Student Services $23,608 $27,150 $25,189 $25,316 $27,282 $24,685 $26,694 $35,578 $37,345 $36,540Institutional Support $27,039 $31,951 $27,843 $26,389 $25,490 $28,925 $34,640 $38,019 $42,388 $39,267Operation & Maintenance of Plant $36,811 $48,826 $35,869 $37,435 $42,905 $47,505 $61,942 $64,116 $77,157 $70,664Scholarships and Fellowships $6,165 $10,006 $12,488 $8,124 $22,143 $19,503 $25,179 $22,115 $23,773 $26,006Auxiliary Services $69,282 $73,218 $81,304 $88,329 $89,548 $101,375 $103,420 $116,856 $126,150 $163,498Depreciation $29,946 $32,697 $33,364 $35,164 $35,009 $37,163 $32,715 $42,974 $49,316 $49,872Total $568,365 $638,737 $619,387 $622,549 $640,262 $658,500 $715,870 $775,971 $836,457 $877,333
12.4% -3.0% 0.5% 2.8% 2.8% 8.7% 8.4% 7.8% 4.9%
Expenses have grown at a average rate of 5% per year and in total 54.4% over a ten year period. Instruction cost has grown in total 47%, while operation maintenance has grown 92% and scholarship & fellowhsip expense has grown 322% over this same period.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Instruction Research Public Service
Academic Support Student Services Institutional Support
Operation & Maintenance of Plant Scholarships and Fellowships Auxiliary Services
Depreciation Total
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Clemson UniversityInstitutional E&G Reserve Balance (Public Reserve Balance)All Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$12,003 ($7,798) ($3,816) $18,687 $24,935 $44,874 $46,958 $46,151 $41,670 $56,019
-165.0% -51.1% 589.7% 33.4% 80.0% 4.6% -1.7% -9.7% 34.4%
Net position designated for the ClemsonForward strategic plan; replacement of critical IT infrastructure; police, fire, and EMS equipment; building access control systems; replacement and upgrading lab, classroom, learning technology; This also reflects necessary operating balances to fund continuing equipment purchases and renovations neccessary to meet ongoing accreditation requirements and for self-supporting E&G initiatives fulfill our mission by providing continuing education, short courses and seminars to business and industry. For context, this is equal to approximately 4 weeks in actual University operating expenses
Overall the Change in Net Position has been positive each year except two years. In 2008, the negative change was primarily strategic related planned investments due to faculty startups, renovations and significant IT upgrades. In 2009, the financial crisis resulted in a sudden and significant reduction in state appropriations.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Institutional Reserve Balance (Public Reserve Balance)
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Clemson UniversityInstitutional and Foundation Scholarship Data All Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Federal Funded $6,456 $7,386 $8,195 $12,910 $15,332 $13,943 $18,330 $18,677 $19,076 $20,196"Institutionally" Funded $15,523 $17,847 $21,081 $22,841 $23,866 $24,033 $28,457 $29,959 $36,165 $39,484Foundation/Privately Funded $10,752 $12,575 $14,958 $13,277 $13,462 $13,142 $14,448 $16,032 $17,455 $20,756State Funded $32,410 $39,380 $41,325 $43,595 $43,876 $44,937 $47,467 $48,631 $51,160 $54,792Total $65,141 $77,188 $85,559 $92,623 $96,537 $96,055 $108,702 $113,299 $123,856 $135,227
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Academic Scholarships $57,751 $68,796 $77,077 $83,776 $87,546 $86,809 $99,142 $102,591 $112,991 $122,482Athletic Scholarships $7,389 $8,392 $8,481 $8,847 $8,991 $9,246 $9,560 $10,708 $10,865 $12,745Total $65,141 $77,188 $85,559 $92,623 $96,537 $96,055 $108,702 $113,299 $123,856 $135,227
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Scholarship Source
Federal Funded "Institutionally" Funded
Foundation/Privately Funded State Funded
Total
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Scholarship Type
Academic Scholarships Athletic Scholarships Total
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Clemson UniversityFaculty/Staff to Students
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016FTE Faculty & Staff 4,646 4,749 4,593 4,205 4,052 4,321 4,485 4,741 4,896 5,057 FTE Students (Based on credit hours) 16,266 17,027 17,876 18,281 18,821 19,692 20,216 20,831 21,668 22,316 Ratio 1:3.5 1:3.5 1:4 1:4.5 1:4.5 1:4.5 1:4.5 1:4.5 1:4.5 1:4.5
Overall, the ratio has been consistent and reasonable based on the size and growth of the faculty, staff and students.
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Clemson UniversityInstitutional Subsidies to Athletics - Per NCAA Agreed Upon ProceduresAll Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 20162,262$ 2,435$ 2,924$ 3,234$ 3,512$ 3,771$ 3,753$ 4,376$ 4,191$ 4,634$
Athletic subsidies are non-cash tuition waivers for out-of-state students on athletic scholarships.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Institutional Athletic Subsidies
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Clemson UniversityVariance between Approved Budget and Closing Budget All Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Budgeted Expenses 669,157$ 766,435$ 735,364$ 769,865$ 807,516$ 809,748$ 889,384$ 938,844$ 981,715$ 1,041,618$ Actual Expenses 647,632 748,253 722,553 736,270 773,021 769,894 840,842 887,239 931,452 993,261 Difference 21,525$ 18,182$ 12,811$ 33,595$ 34,495$ 39,854$ 48,542$ 51,605$ 50,263$ 48,357$
3.2% 2.4% 1.7% 4.4% 4.3% 4.9% 5.5% 5.5% 5.1% 4.6%
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Budget to Actual
Budgeted Expenses Actual Expenses Difference
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Clemson UniversityMaintenance Reserve Account and Institutional Capital Reserve AccountAll Dollar Amounts are in Thousand's Unless otherwise indicated
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Maintenance & Stewardship Fund $13,554 $12,955 $22,674 $34,423 $43,375 $54,635 $58,261 $64,136 $75,638 $81,631Auxiliary Improvement Fund Balance $10,124 $22,046 $26,146 $26,197 $27,643 $32,911 $31,187 $32,304 $27,149 $23,858Total $23,678 $35,001 $48,820 $60,620 $71,018 $87,546 $89,448 $96,439 $102,786 $105,489
Maintenance & Stewardship Fund balance is used for ongoing and future maintenance of existing E&G assets. Auxiliary Improvement Fund balance is used for ongoing and future maintenance of existing Auxiliary assets. Neither of these funds are currently used to fund capital projects.
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Maintenance Reserves
Maintenance & Stewardship Fund Auxiliary Improvement Fund Balance Total
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Executive Summary – MUSC Leases Proposal
In conjunction with their Master Plan, MUSC is moving forward with leasing a parking
garage facility that will accommodate the new Shawn Jenkins Children Hospital and
also provide MUSC Public Safety with over 10,000 square feet of office space. As with
all auxiliaries, the parking garage will be self-sustaining during the 10-year lease period.
The 22 West Edge office space lease will be funded by MUSC with revenue generated
by facilities and administrative cost recoveries from extramural grants and contracts
related to the Bioinformatics group. The Hospital Analytics Office is supported by
clinical revenues generated by the Medical University Hospital Authority. This space
will support research based functions, and will not provide classroom space.
During our campus site visit, there was extensive construction being performed for the
22 West Edge location. The parking facility was not yet under construction, but the
need for parking was noted by the CHE team.
The overall risk assessment for MUSC is moderately low. The primary concern is the
low capital reserves to address maintenance projects such as HVAC replacement and
roof repair & replacement. MUSC does have exposure if an unforeseen maintenance
project requires immediate attention. The consistent positive change in net position
offsets this risk, but does not eliminate the risk to MUSC.
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Agenda Item 4.A Finance & Facilities Committee
MUSC Risk Assessment
Institution: The Medical University of South Carolina (MUSC)
Leases: 1) 165 Cannon Street Garage; 2) 22 WestEdge office space
Date Received: 1) February 9, 2017 2) January 18, 2017
Risk: Maintenance – Moderate Risk How does the institution budget for annual routine maintenance?
Operational & Plant Maintenance expense of $87 million appears to be adequate.
However, the Capital Reserve account has been nearly depleted from $6.2 million to a
current balance of $100,000. This low Capital Reserve account coupled with a deferred
maintenance need of $107 million is a concern. The risk is offset by a consistent
increase in net position and a favorable budget to actual variance over the past ten-year
period in addition to the $87 million in plant maintenance expense.
Risk: Source of Funds – Low Risk
Readily available and traceable?
In regards to the lease at 22 West Edge, the University received approximately $260
million of extramural grants in fiscal year 2016 alone, and it is projected that this
amount will stay consistent if not increase in the future.
In addition, the parking revenues generated for the lease payment for the garage at 165
Cannon Street are expected to breakeven in the first few years, and then become a
source of auxiliary revenue for the University, considering normal increases in demand
and fees.
Effect on student affordability?
The sources of funds associated with both leases will not have an effect on students’
access or affordability. Although tuition increases have been low, enrollment has
continued to rise over the past ten years. Parking fees are expected to be in alignment
with other parking options.
Risk: Financial Stability – Low Risk
Based on the analytics performed, there appears to be no current nor projected financial
stability concerns. The University has consistently had positive change in their net
position coupled with a diversified revenue stream.
31
Agenda Item 4.A.1 Finance & Facilities Committee
DESCRIPTION OF LEASE APPROVAL FOR CONSIDERATION April 6, 2017
MEDICAL UNIVERSITY OF SOUTH CAROLINA PROJECT NAME: 165 Cannon Street Garage REQUESTED ACTION: New Lease Approval REQUESTED ACTION AMOUNT: $52,988,800 INITIAL CHE APPROVAL DATE: N/A
DESCRIPTION: MUSC requests approval to lease 1,400 parking spaces within the 165 Cannon Street Parking Garage. The garage will be built on the current land that M Lot is located. This land was sold by MUSC to the MUSC Foundation in 2016. The lease term is August 1, 2019 through July 31, 2039, with three five-year options to extend. There is no annual rent increase. The annual rent is exclusive of operating expenses, utilities, taxes and insurance.
This is a new lease that will support MUSC employee and guest parking associated with the new Shawn Jenkin’s Children’s Hospital. The amount per space is $145 per month. It is expected that 700 parking spaces currently leased by CareAlliance at 21 Courtenay Drive shall transfer to this parking garage. In addition, the property will provide 10,672 square feet of office space for Public Safety. The associated cost per square foot is $20. Revenues generated from parking spaces, and auxiliary and clinical revenues from public safety services will be used to make the lease payments.
Term 8/1/2019-7/30/2039 (20 Years) Parking Garage Office Space Number of Spaces Square feet 1,400 10,672
Amount per Space Cost per Square Foot
$145.00 $20.00 $203,000/month $2,436,000/year $213,440/year
Annual Lease Payment $2,649,440/year
Total Amount of Lease Term(20Years): $52,988,800 Total Amount Including Extended Terms: $92,730,400
ACTION REQUESTED: Staff presents the item for approval, provided the rates and terms of the lease are approved by the Department of Administration.
32
MEDICAL UNIVERSITY
of SOUTH CAROLINA
Office of Institutional Resources & Research 28 Ehrhardt Street, MSC 205 Chark"Ston, SC 29425 843-792-5996
February 9, 2017 Edward Patrick Carrie Eberly and Morgan O'Donnell South Carolina Commission on Higher Education 1122 Lady Street Columbia, SC 29201
RE: Request for Leased Space/ 165 Cannon Street Garage
Dear Mr. Patrick, Ms. Eberly and Mr. O'Donnell
The Medical University of South Carolina (MUSC) requests to lease 1,400 parking spaces within the 165 Cannon Street Parking Garage from 165 Cannon Street, LLC. This lease is critical to several community
initiatives taking place at the Medical University of South Carolina. This lease agreement will provide support for MUSC employee and guest parking associated with the new Shawn Jenkins Children's Hospital. This property shall also provide 10,672 square feet of office space for Public Safety needed to accommodate their move to facilitate the Greenway Project and 'activate' the street. In addition, it is expected that 700 parking spaces currently leased by CareAlliance Health at 2 I Courtenay Drive shall transfer to this parking garage.
Please prepare this lease for the May 2017 SFAA meeting.
Number of spaces: Cost per space: Cost per SF/Public Safety; Annual Rent: Annual rent increase: Estimated Start Date:
1,400 parking spaces $145.00 $20.00 $2,649,440.00 None October 2018
Lease Tenn� 20 Years Extended Tenn: 3 Tcnns, S Years Each Total Including Extensions: $92,730,400.00
Please let me know if you have any questions.
Sincerely,
��� Medical University of South Carolina Leasing Manager
33
Agenda Item 4.A.2 Finance & Facilities Committee
DESCRIPTION OF LEASE APPROVAL FOR CONSIDERATION April 6, 2017
MEDICAL UNIVERSITY OF SOUTH CAROLINA PROJECT NAME: 22 WestEdge REQUESTED ACTION: New Lease Approval REQUESTED ACTION AMOUNT: $9,632,250 INITIAL CHE APPROVAL DATE: N/A
DESCRIPTION: MUSC requests approval to lease 25,000 square feet of office space located at 22 WestEdge. The initial lease term is May 1, 2018 through April 30, 2028, with three five-year options to extend. This is a full service lease and includes an annual increase of 2.5%. The cost per square foot will be $36 the first year, and will increase to $44.96 per square foot. No maintenance costs will be incurred as a part of this lease. The landlord will provide an up-fit allowance of $1,000,000 for initial buildout. Market comps considered ranged from $34.50-$36.36 per square foot.
This is a new lease that will support the WestEdge partnership between the City of Charleston and the Medical University of South Carolina for the development of the Hospital Medical District. Half of the space will be used by the MUSC Bioinformatics group and half will be subleased by the Hospital Analytics Office, a function of the Medical University Hospital Authority (MUHA). The revenue stream used to pay the University’s portion of the lease will be facilities and administrative cost recoveries from extramural grants and contracts. The Hospital Analytics Office is supported by clinical revenues. This space will support research based functions, and will not provide classroom space.
Term Annual Rent Year 1 $900,000 Year 2 $913,500 Year 3 $927,250 Year 4 $941,250 Year 5 $955,250 Year 6 $969,500 Year 7 $984,000 Year 8 $998,750 Year 9 $1,013,750 Year 10 $1,029,000
Total $9,632,250
The total lease cost would be $30,741,987 should all three options to extend be exercised. Approval from the Department of Administration will be required prior to exercising the option to renew the lease.
ACTION REQUESTED: Staff presents the item for approval, provided the rates and terms of the lease are approved by the Department of Administration.
34
i1MUSC MEDICAL UNIVERSITY
of SOUTH CAROLINA
Office of Institutional Resources & Research 28 Ehrhardt Street, MSC 205 Charleston, SC 29425
MEMORANDUM To: Morgan O'Donnell
Gary Glenn
From: Rachel Jones
Date: January 17, 2017
Re: MUSC Lease - Full Commission Approval Requested
The following lease agreement was approved by the MUSC Board of Trustees on August 12, 2016 and shall be reaffirmed by the MUSC Board on February 10, 2017. It is requested that this be presented to the February 2017 Finance & Facilities Meeting.
DESCRIPTION OF LEASE: This lease is for 25,000 square feet of office space located at 22 WestEdge. The purpose of this lease is to provide space for MUSC Bioinformatics and the Hospital Analytics Office. This lease will support the WestEdge partnership between the City of Charleston and the Medical University of South Carolina for the development of the Hospital Medical District. The cost per square foot for this lease is $36.00. The monthly rental rate will be $75,000.00, resulting in an annual lease amount of $900,000.00. The rent shall increase 2.5% annually. Medical University Hospital Authority shall sublease approximately half of this space from the Medical University of South Carolina for the Hospital Analytics Office. Landlord shall provide an upfit allowance of $1,000,000.00 for initial buildout.
Cost per Square Foot: $36.00 Lease Term: 10 Years [5/1/2018-4/30/2028] Annual Lease Cost:
Year 1 Ycar2 Year3 Ycar4 YearS
$900,000.00 $922,500.00 $945,562.50 $969,201.56 $993,431.60
Ycar6 Yc.-ar 7 Ycar8 Ycar9 Year 10
Renewal Option: 3 terms, 5 years each
$1,018,267.39 $1,043,724.08 $1,069,817.18 $1,069,562.61 $1,123,976.67
Year I $1,152,076.09 Yc.-ar6 $1,303,468.35 Ycar2 $1,180,877.99 Year7 $1,336,055.06 Ycar3 $1,210,399.94 Ycar8 $1.369,456.44 Ycar4 $1,240,659.94 Ycar9 $1,403,692.85 Ycar5 $1,271.676.44 Year IO $1,438,785.17
Total Lease Cost: Annual Operating Costs:
$30,741,987 Full Service
Year 11 $1.474.754.80 Year 12 $1,511,623.67 Year 13 $1,549,414.26 Year 14 $1,588,149.61 Year IS $1,627,853.35
Comparable Rates: 40 Calhoun Street 151 Meeting Street 177 Meeting Street
$34.50 SF $36.36 SF $36.00 SF
Full Service Full Service Full Service
35
MUSC10 Year Net Change in Net Position Trend
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Change 93,047,590$ 32,551,145$ 28,156,768$ 156,153,363$ 122,873,368$ 34,355,880$ 26,001,961$ 25,991,500$ 17,099,491$ 5,579,025$ Beginning Yr 678,608,454$ 771,656,044$ 804,207,189$ 823,613,957$ 979,767,320$ 1,102,640,688$ 809,415,115$ 833,822,324$ 522,751,059$ 539,850,550$ End Year 771,656,044$ 804,207,189$ 832,363,957$ 979,767,320$ 1,102,640,688$ 1,136,996,568$ 835,417,076$ 859,813,824$ 539,850,550$ 545,429,575$
Return on Net Position 13.71% 4.22% 3.50% 18.96% 12.54% 3.12% 3.21% 3.12% 3.27% 1.03%
36
Medical University of South CarolinaCHE Financial Matrix10‐Year Revenue Trend
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Appropriations 136,510,000$ 138,157,000$ 116,418,000$ 108,647,000$ 81,659,000$ 79,017,000$ 82,325,000$ 92,865,000$ 108,173,000$ 91,859,000$ Tuition 46,341,000 49,199,000 55,377,000 62,545,000 69,197,000 76,850,000 82,352,000 86,674,000 89,555,000 93,907,000 Federal grants and contracts 116,302,000 117,734,000 119,783,000 138,760,000 154,409,000 146,790,000 142,467,000 133,549,000 132,669,000 138,868,000 Hospital Authority sales & services 70,960,000 83,161,000 83,025,000 68,423,000 83,646,000 87,912,000 102,101,000 102,448,000 108,837,000 111,475,000 Auxiliary enterprises 6,898,000 7,470,000 9,782,000 6,686,000 11,038,000 11,479,000 11,958,000 12,826,000 13,990,000 14,667,000 Other revenues 86,588,000 97,577,000 106,138,000 133,713,000 141,480,000 124,349,000 138,257,000 136,409,000 143,247,000 141,690,000 Total revenues 463,599,000$ 493,298,000$ 490,523,000$ 518,774,000$ 541,429,000$ 526,397,000$ 559,460,000$ 564,771,000$ 596,471,000$ 592,466,000$
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Total revenues 463,599,000$ 493,298,000$ 490,523,000$ 518,774,000$ 541,429,000$ 526,397,000$ 559,460,000$ 564,771,000$ 596,471,000$ 592,466,000$ Total expenses 474,401,000$ 516,205,000$ 540,569,000$ 553,899,000$ 585,502,000$ 599,632,000$ 621,104,000$ 628,298,000$ 661,547,000$ 693,991,000$
$‐
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Other revenues
Auxiliary enterprises
Hospital Authority sales & services
Federal grants and contracts
Tuition
Appropriations
37
Medical University of South Carolina CHE notes: this schedule is extracted from the unaudited section of the institution's CAFR, it is rounded to thousandsCHE Financial Matrix Schedule of Expenses by Function ‐ University10‐Year Expenditure Trend
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Instruction 164,547,000$ 180,898,000$ 192,271,000$ 187,876,000$ 195,634,000$ 191,499,000$ 195,119,000$ 172,648,000$ 187,337,000$ 187,241,000$ Research 126,864,000 130,597,000 140,638,000 148,542,000 169,227,000 169,997,000 178,477,000 170,663,000 171,551,000 184,596,000 Public Service 33,089,000 37,434,000 40,452,000 43,018,000 45,523,000 45,137,000 45,580,000 73,866,000 75,818,000 78,658,000 Academic Support 32,210,000 35,235,000 38,332,000 36,590,000 33,035,000 36,898,000 45,032,000 46,243,000 53,929,000 59,531,000 Student Services 9,028,000 9,605,000 9,881,000 10,321,000 8,596,000 8,258,000 8,388,000 8,140,000 8,713,000 8,793,000 Institutional Support 36,669,000 40,052,000 34,203,000 37,015,000 36,793,000 36,400,000 38,686,000 33,449,000 42,307,000 47,134,000 Operations & Maintenance of Plant 59,770,000 66,775,000 67,919,000 69,385,000 72,371,000 86,833,000 83,346,000 83,325,000 86,660,000 86,938,000 Auxiliary enterprises 4,876,000 5,830,000 6,868,000 7,736,000 10,616,000 11,997,000 10,663,000 10,218,000 10,695,000 11,056,000 Other expenses 7,348,000 9,779,000 10,005,000 13,416,000 13,707,000 12,613,000 15,813,000 29,746,000 24,537,000 30,044,000 Total expenses 474,401,000$ 516,205,000$ 540,569,000$ 553,899,000$ 585,502,000$ 599,632,000$ 621,104,000$ 628,298,000$ 661,547,000$ 693,991,000$
$‐
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
2007200820092010201120122013201420152016
Other expenses
Auxiliary enterprises
Operations & Maintenance ofPlantInstitutional Support
Student Services
Academic Support
Public Service
38
Medical University of South CarolinaCHE Financial Matrix10‐Year Ratio of Debt to Debt CapacityNote: this only includes SIB Bonds
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total revenue available for debt service 8,400,000 8,400,000 8,400,000 8,612,000 10,656,000 8,502,000 6,924,000 9,861,000 8,466,000 8,187,000
Debt service principal 3,495,000 3,135,000 3,270,000 3,390,000 3,505,000 4,060,000 4,155,000 4,225,000 4,210,000 4,360,000
Debt service interest 2,162,000 1,992,000 1,858,000 1,717,000 1,568,000 2,211,000 1,988,000 1,867,000 1,698,000 1,525,000
Total debt service requirements 5,657,000 5,127,000 5,128,000 5,107,000 5,073,000 6,271,000 6,143,000 6,092,000 5,908,000 5,885,000
Ratio of debt/ debt capacity State Institution Bonds 1.48 1.64 1.64 1.69 2.10 1.36 1.13 1.62 1.43 1.39
‐
0.50
1.00
1.50
2.00
2.50
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ratio of debt/ debt capacity StateInstitution Bonds
39
Medical University of South CarolinaCHE Financial Matrix10‐Year Trend of Excess Debt Service
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Excess Debt Service 981,485 899,771 899,771 899,771 750,642 0 0 0 0 0
40
Medical University of South CarolinaCHE Financial Matrix10‐Year Enrollment Trend
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Headcount (per CAFR)Undergraduate 272 319 267 237 200 204 205 293 324 306 Graduate 1,105 1,032 1,027 1,051 1,211 1,233 1,243 1,267 1,319 1,338 First Professional 1,161 1,181 1,220 1,272 1,268 1,294 1,329 1,340 1,352 1,350
FTEUndergraduate 235 277 240 220 200 206 205 286 318 unavailableGraduate 1,358 1,263 1,285 1,354 1,501 1,541 1,537 1,553 1,583 unavailableFirst Professional 1,222 1,215 1,251 1,297 1,314 1,353 1,391 1,391 1,406 unavailable
Enrollment Criteria N/A
AdmissionsApplicants 4,673 4,786 5,028 5,379 5,844 6,580 6,558 6,659 6,911 6,865 Offered 1,354 1,337 1,307 1,358 1,445 1,457 1,441 1,618 1,667 1,668 Accepted 1,056 1,036 1,020 1,034 1,110 1,071 1,059 1,171 1,205 1,191
Residency for fee purposesSC Residents 1,934 1,941 1,908 1,939 1,987 1,954 1,988 2,075 2,113 2,092 ‐ percentage 76% 77% 76% 76% 74% 72% 72% 72% 71% 70%
41
Medical University of South CarolinaCHE Financial Matrix10‐Year Tuition Trend
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
UndergraduateHealth Professions 16,533 17,361 19,374 20,250 21,051 21,501 21,717 22,371 22,752 22,752 Nursing 15,837 17,418 18,987 20,316 21,027 21,477 21,876 22,314 22,761 22,751
GraduateDental Medicine 26,551 31,064 36,345 38,162 40,452 42,474 43,749 45,062 46,450 47,415 Graduate Studies 13,166 14,483 15,498 17,049 18,072 18,253 19,166 19,549 19,941 20,339 Health Professions 17,058 18,338 21,289 20,899 21,243 23,061 23,201 23,274 23,729 23,729 Medicine 23,270 25,598 29,438 31,204 33,388 33,388 33,388 33,388 33,388 33,388 Nursing 17,058 18,765 21,015 22,065 23,175 23,175 23,871 24,348 24,348 24,348 Pharmacy 15,330 17,647 19,411 20,757 21,794 22,446 23,120 23,863 24,554 25,290
UndergraduateHealth Professions 44,538 46,767 35,726 30,870 32,415 32,865 33,195 34,191 34,773 24,773 Nursing 43,377 30,264 33,399 33,399 35,736 36,450 33,000 33,000 33,000 33,000
GraduateDental Medicine 74,050 81,455 63,831 67,023 71,045 74,598 76,837 79,142 81,625 83,290 Graduate Studies 16,536 18,192 22,741 25,017 26,517 26,782 28,122 28,684 29,257 29,843 Health Professions 34,011 30,943 34,329 27,622 29,513 32,985 33,644 32,395 33,021 33,485 Medicine 65,800 72,380 52,770 55,936 59,852 59,852 59,852 59,852 59,852 59,852 Nursing 27,513 30,264 34,803 36,543 28,659 28,659 28,659 28,659 28,659 28,659 Pharmacy 36,400 35,294 29,000 31,000 32,550 33,527 34,534 35,637 36,669 37,755
Resident
Non‐Resident
42
Medical University of South CarolinaCHE Financial Matrix10‐Year Trend of Institutional and Foundation Scholarship Data
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Institutional Scholarships 1,284,180$ 1,237,725$ 880,943$ 1,151,903$ 1,227,113$ 1,314,274$ 3,091,241$ 3,802,267$ 3,431,003$ 3,240,859$ Other scholarships 264,434$ 590,126$ 715,999$ 901,619$ 484,939$ 415,984$ 414,819$ 397,584$ 447,225$ 410,500$ State Scholarships 413,750$ 396,250$ 353,750$ 293,750$ 295,750$ 327,500$ 248,750$ 368,750$ 395,000$ 396,250$ Total 1,962,364 2,224,101 1,950,692 2,347,272 2,007,802 2,057,758 3,754,810 4,568,601 4,273,228 4,047,609
65% 56% 45% 49% 61% 64% 82% 83% 80% 80%
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
State Scholarships
Other scholarships
Institutional Scholarships
43
Medical University of South CarolinaCHE Financial Matrix10‐Year Trend of Institutional Reserve Balance
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net position 397,555,000$ 440,128,000$ 454,586,000$ 518,439,000$ 582,198,000$ 599,151,000$ 618,709,000$ 632,063,000$ 310,527,000$ 310,463,000$
$‐
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net position
44
Medical University of South CarolinaCHE Financial Matrix10‐Year Measure of Variance Between Approved Budget in July and Actual Closing Budget in June
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Approved budget Revenue 625,497,715 604,794,772 587,341,734 598,080,215 561,760,925 538,328,663 556,861,155 516,857,410 512,635,349 440,736,094
Expenditure 686,323,696 651,837,388 633,072,312 630,470,247 603,592,833 578,936,587 586,775,954 545,204,790 524,837,836 449,282,543
Other Additions (Deductions) 64,606,094 54,898,901 50,051,801 32,390,032 41,831,908 40,607,924 33,865,492 28,347,380 12,202,488 8,546,449
Net Increase (Decrease) in Fund Balance 3,780,113 7,856,285 4,321,223 ‐ ‐ ‐ 3,950,693 ‐ 1 ‐
June Actual Revenue 654,396,443 630,550,964 602,721,144 592,470,025 570,366,693 576,924,737 557,849,982 536,860,601 533,296,762 506,364,131
Expenditure 700,199,882 670,759,390 638,010,952 630,439,830 613,658,096 603,606,237 587,230,291 567,057,953 556,809,153 515,598,165
Other Additions (Deductions) 75,033,360 73,084,410 41,938,245 39,437,913 43,563,669 34,445,766 36,338,801 41,391,016 25,119,076 13,708,108
Net Increase (Decrease) in Fund Bal 29,229,921 32,875,984 6,648,437 1,468,108 272,266 7,764,266 6,958,492 11,193,663 1,606,685 4,474,074
Variance Revenue 28,898,728 25,756,192 15,379,410 (5,610,190) 8,605,768 38,596,074 988,827 20,003,191 20,661,413 65,628,037
Expenditure (13,876,186) (18,922,002) (4,938,640) 30,417 (10,065,263) (24,669,650) (454,337) (21,853,163) (31,971,317) (66,315,622)
Other Additions (Deductions) 10,427,266 18,185,509 (8,113,556) 7,047,881 1,731,761 (6,162,158) 2,473,309 13,043,636 12,916,588 5,161,659
Net Increase (Decrease) in Fund Bal 25,449,808 25,019,699 2,327,214 1,468,108 272,266 7,764,266 3,007,799 11,193,663 1,606,684 4,474,074
45
Medical University of South CarolinaCHE Financial Matrix10‐Year Budget revenue line item
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Approved budgetAppropriations 118,518,789$ 97,846,988$ 89,491,594$ 77,638,143$ 74,309,091$ 74,709,256$ 103,302,216$ 125,551,723$ 128,539,355$ 98,662,277$ Tuition 95,073,385 91,951,512 86,207,825 81,829,072 77,921,611 70,174,582 65,020,463 56,512,729 48,644,829 43,689,713 Federal grants and contracts 130,806,218 134,040,910 135,029,025 155,598,910 158,013,331 141,654,428 125,622,381 117,470,292 112,770,609 119,078,889 Hospital Authority sales & services 112,271,413 113,972,688 107,527,197 111,849,999 95,364,287 89,086,270 94,280,604 89,696,765 76,859,261 72,885,426 Auxiliary enterprises 14,368,386 13,552,726 13,380,049 12,378,599 11,858,138 9,027,814 8,465,541 8,638,289 7,770,171 6,182,459 Other revenues 154,459,524 153,429,948 155,706,044 158,785,492 144,294,467 153,676,313 160,169,950 118,987,612 138,051,124 100,237,330 Total Revenue 625,497,715$ 604,794,772$ 587,341,734$ 598,080,215$ 561,760,925$ 538,328,663$ 556,861,155$ 516,857,410$ 512,635,349$ 440,736,094$
625,497,715 604,794,772 587,341,734 598,080,215 561,760,925 538,328,663 556,861,155 516,857,410 512,635,349 440,736,094 June Actual ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Appropriations 107,235,185$ 98,945,828$ 85,587,302$ 78,839,950$ 75,409,985$ 72,940,768$ 96,946,819$ 103,594,448$ 121,636,641$ 120,594,721$ Tuition 98,900,431 95,213,727 91,111,054 86,670,686 80,940,422 72,627,855 65,355,679 58,782,544 51,976,922 48,952,409 Federal grants and contracts 136,964,584 129,729,151 134,616,043 139,165,597 145,630,496 153,822,976 138,035,243 120,874,199 118,990,468 116,850,124 Hospital Authority sales & services 116,229,057 113,172,786 108,089,676 108,726,643 92,943,114 91,317,445 96,010,361 92,515,416 89,475,432 77,674,189 Auxiliary enterprises 15,041,031 14,566,853 13,334,798 12,392,323 12,253,240 11,472,267 7,508,232 10,064,603 7,718,469 7,196,890 Other revenues 180,026,155 178,922,619 169,982,271 166,674,826 163,189,436 174,743,426 153,993,648 151,029,391 143,498,830 135,095,798 Total Revenue 654,396,443$ 630,550,964$ 602,721,144$ 592,470,025$ 570,366,693$ 576,924,737$ 557,849,982$ 536,860,601$ 533,296,762$ 506,364,131$
654,396,443 630,550,964 602,721,144 592,470,025 570,366,693 576,924,737 557,849,982 536,860,601 533,296,762 506,364,131 Variance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Appropriations (11,283,604)$ 1,098,840$ (3,904,292)$ 1,201,807$ 1,100,894$ (1,768,488)$ (6,355,397)$ (21,957,275)$ (6,902,714)$ 21,932,444$ Tuition 3,827,046 3,262,215 4,903,229 4,841,614 3,018,811 2,453,273 335,216 2,269,815 3,332,093 5,262,696 Federal grants and contracts 6,158,366 (4,311,759) (412,982) (16,433,313) (12,382,835) 12,168,548 12,412,862 3,403,907 6,219,859 (2,228,765) Hospital Authority sales & services 3,957,644 (799,902) 562,479 (3,123,356) (2,421,173) 2,231,175 1,729,757 2,818,651 12,616,171 4,788,763 Auxiliary enterprises 672,645 1,014,127 (45,251) 13,724 395,102 2,444,453 (957,309) 1,426,314 (51,702) 1,014,431 Other revenues 25,566,631 25,492,671 14,276,227 7,889,334 18,894,969 21,067,113 (6,176,302) 32,041,779 5,447,706 34,858,468 Total Revenue 28,898,728$ 25,756,192$ 15,379,410$ (5,610,190)$ 8,605,768$ 38,596,074$ 988,827$ 20,003,191$ 20,661,413$ 65,628,037$
28,898,728 25,756,192 15,379,410 (5,610,190) 8,605,768 38,596,074 988,827 20,003,191 20,661,413 65,628,037
46
Medical University of South CarolinaCHE Financial Matrix10‐Year Budget expenditure line item
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Approved budgetInstruction 197,458,303$ 167,388,149$ 179,655,677$ 189,889,008$ 177,707,664$ 181,490,549$ 187,051,131$ 168,801,131$ 156,187,747$ 125,248,992$ Research 180,814,092 175,299,003 182,938,804 185,510,324 180,850,015 166,159,883 149,737,462 143,978,917 127,897,624 127,906,028 Public Service 71,453,479 76,129,645 46,676,189 45,010,628 48,360,793 42,666,139 38,858,960 35,997,000 36,521,398 31,153,916 Academic Support 54,807,219 54,859,443 48,810,640 38,869,475 38,236,219 36,394,920 38,529,829 39,085,640 35,074,464 29,600,538 Student Services 8,906,363 8,364,671 8,269,766 9,076,193 8,282,026 10,926,343 10,315,200 9,905,752 9,285,959 8,914,071 Institutional Support 65,611,019 62,837,759 68,448,398 67,579,102 60,038,163 62,807,797 67,111,294 66,549,174 85,417,687 52,266,670 Operations & Maintenance of Plant 67,720,673 66,242,186 65,106,403 73,756,002 67,508,746 61,770,216 63,350,434 65,437,767 57,152,156 57,343,309 Auxiliary enterprises 11,931,242 11,830,318 11,399,494 11,810,017 11,440,669 8,099,805 7,343,767 5,433,380 5,140,328 4,153,936 Other expenses 27,621,306 28,886,214 21,766,941 8,969,498 11,168,538 8,620,935 24,477,877 10,016,029 12,160,473 12,695,083 Total Expenditure 686,323,696$ 651,837,388$ 633,072,312$ 630,470,247$ 603,592,833$ 578,936,587$ 586,775,954$ 545,204,790$ 524,837,836$ 449,282,543$
June ActualInstruction 200,583,627 173,813,520 168,279,387 185,032,474 183,396,356 184,392,117 187,097,691 186,696,546 160,536,149 149,394,126 Research 195,009,239 181,548,407 180,301,155 187,013,285 181,696,199 178,087,827 160,772,088 147,263,334 143,200,901 134,088,634 Public Service 78,723,061 76,423,836 72,843,122 45,310,874 45,427,756 45,728,515 42,449,748 40,006,393 36,367,497 31,882,450 Academic Support 59,971,163 54,407,507 48,427,696 46,754,426 37,579,145 35,234,419 39,277,681 39,295,217 36,742,228 32,686,477 Student Services 9,020,010 8,839,153 8,273,715 8,482,316 8,363,624 8,802,303 10,392,973 9,983,305 9,792,681 8,980,589 Institutional Support 66,024,226 67,495,061 57,200,731 63,785,839 65,157,082 63,698,380 62,970,072 63,462,803 89,447,713 84,111,160 Operations & Maintenance of Plant 64,540,171 65,768,679 71,133,328 73,871,354 69,169,482 64,839,228 63,397,981 62,849,639 64,191,777 58,486,853 Auxiliary enterprises 11,623,332 10,852,941 10,493,521 10,842,823 12,071,102 10,590,865 7,733,592 6,927,086 5,896,988 4,950,731 Other expenses 14,705,053 31,610,286 21,058,297 9,346,439 10,797,350 12,232,583 13,138,466 10,573,630 10,633,219 11,017,147 Total Expenditure 700,199,882 670,759,390 638,010,952 630,439,830 613,658,096 603,606,237 587,230,292 567,057,953 556,809,153 515,598,167
VarianceInstruction (3,125,324) (6,425,371) 11,376,290 4,856,534 (5,688,692) (2,901,568) (46,560) (17,895,415) (4,348,402) (24,145,134) Research (14,195,147) (6,249,404) 2,637,649 (1,502,961) (846,184) (11,927,944) (11,034,626) (3,284,417) (15,303,277) (6,182,606) Public Service (7,269,582) (294,191) (26,166,933) (300,246) 2,933,037 (3,062,376) (3,590,788) (4,009,393) 153,901 (728,534) Academic Support (5,163,944) 451,936 382,944 (7,884,951) 657,074 1,160,501 (747,852) (209,577) (1,667,764) (3,085,939) Student Services (113,647) (474,482) (3,949) 593,877 (81,598) 2,124,040 (77,773) (77,553) (506,722) (66,518) Institutional Support (413,207) (4,657,302) 11,247,667 3,793,263 (5,118,919) (890,583) 4,141,222 3,086,371 (4,030,026) (31,844,490) Operations & Maintenance of Plant 3,180,502 473,507 (6,026,925) (115,352) (1,660,736) (3,069,012) (47,547) 2,588,128 (7,039,621) (1,143,544) Auxiliary enterprises 307,910 977,377 905,973 967,194 (630,433) (2,491,060) (389,825) (1,493,706) (756,660) (796,795) Other expenses 12,916,253 (2,724,072) 708,644 (376,941) 371,188 (3,611,648) 11,339,411 (557,601) 1,527,254 1,677,936 Total Expenditure (13,876,186) (18,922,002) (4,938,640) 30,417 (10,065,263) (24,669,650) (454,338) (21,853,163) (31,971,317) (66,315,624)
47
Medical University of South CarolinaCHE Financial Matrix10‐Year Ratio of FTE Faculty, Adjunct Faculty, and Staff to Students
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
FTE Faculty (all) 1,438.63 1,440.76 1,393.57 1,440.76 1,371.29 1,341.64 1,298.49 1,236.67 1,264.99 1,196.36 ‐ratio 0.44 0.43 0.46 0.44 1.02 1.00 0.99 1.04 0.98 Adjunct Faculty (all) 33.00 30.00 34.00 31.00 51.00 51.00 53.00 51.00 35.25 42.81 ‐ratio 0.01 0.01 0.01 0.02 0.04 0.04 0.04 0.03 0.04 Staff (non‐faculty) 1,681.33 1,683.33 1,625.79 1,584.14 1,599.18 1,579.93 1,556.56 1,552.97 1,649.36 1,597.52 ‐ratio 0.51 0.50 0.51 0.52 1.20 1.20 1.24 1.36 1.31 All staff 3,152.96 3,154.09 3,053.36 3,055.90 3,021.47 2,972.57 2,908.05 2,840.64 2,949.60 2,836.69 ‐ratio 0.95 0.95 0.98 0.97 2.26 2.24 2.27 2.43 2.32
Students (FTEs) not available 3,306.29 3,229.81 3,133.30 3,100.48 1,314 1,297 1,251 1,215 1,222
FTE Faculty by College:College of Dental Medicine 55.89 57.49 59.26 56.66 57.46 59.56 56.96 50.96 53.36 48.26College of Graduate Studies 3.00 3.00 1.00 2.00 3.00 2.00 3.00 2.00 3.00 4.00College of Health Professions 56.59 56.94 52.91 47.10 47.07 53.11 54.03 53.25 55.15 56.90College of Medicine 1,178.59 1,184.15 1,141.97 1,134.96 1,127.00 1,097.76 1,058.10 1,003.16 1,012.04 947.38College of Nursing 53.05 50.35 51.35 46.95 41.70 36.00 36.85 36.05 40.20 37.20College of Pharmacy 36.28 38.20 34.71 37.13 37.56 38.22 39.70 36.50 38.72 39.45Total by college 1,383.41 1,390.14 1,341.19 1,324.79 1,313.79 1,286.64 1,246.64 1,181.92 1,202.46 1,133.19
Difference not in a College 55.22 50.62 52.38 115.97 57.50 55.00 51.85 54.75 62.53 63.17
Adjunct Faculty by College:College of Dental Medicine 0.8 1.3 1.8 0 0.8 1.7 2.1 1.6 0.4 0.8College of Graduate Studies 1.05 1.05 2.15 2 2 1.8 1.8 1.8 1 1.65College of Health Professions 0.15 0.46 0.74 0.6 12.11 11.52 11.27 6.2 7.56 7.82College of Medicine 21.34 18.92 18.11 20.78 21.44 23.43 21.86 23.28 10.09 8.16College of Nursing 3.2 3.55 6.39 1.73 8.62 8.29 8.21 8.87 12.67 20.36College of Pharmacy 1.72 1.12 1.09 1.31 1.34 1.67 2.67 2.63 0.63 0.51Total by college 28.26 26.41 30.28 26.42 46.32 48.41 47.91 44.38 32.35 39.31
Difference not in a college 4.74 3.59 3.72 4.58 4.68 2.59 5.09 6.62 2.90 3.50
Undergraduate FTE Faculty by College:College of Health Professions BS CVP program 2 2 2 2 9 9 9 9 9 9 BS in Healthcare Studies (new) 2 0 0 0 0 0 0 0 0 0College of Nursing BSN program 10 10 8.5 8.5 8 8 8 8 7 7 RN‐BSN program 1.5 1.5 0 0 0 0 0 1.1 1.1 1.1
Undergraduate Adjunct Faculty by College:College of Health Professions BS CVP program 0 0 0 0 0 0 0 0 0 0 BS in Healthcare Studies 1 0 0 0 0 0 0 0 0 0College of Nursing BSN program 0.5 0.5 0.35 0.35 0.3 0.3 0.3 0.3 0.25 0.25 RN‐BSN program 0.3 0.3 0 0 0 0 0 0.25 0.25 0.25
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Medical University of South CarolinaCHE Financial Matrix10‐Year Trend of Capital Reserve Account
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Capital Reserve 99,265 533,614 3,256,493 7,443,213 5,874,643 1,102,999 2,496,163 5,433,511 6,224,305 No records available
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
201620152014201320122011201020092008
Capital Reserve
49
Capital Projects & Leases Processed by Staff
Date Approved Project # Institution Project Name Action Category Budget Change Revised Budget Original
Approval Date Staff Approval Criteria
-
2/27/2017 9899 Piedmont Technical College Moss Property Donation Establish Project $20,000 $20,000 - Preliminary Land Study
2/27/2017 9886 Piedmont Technical College Upstate Center for Manufacturing Excellence Increase Budget $3,750,000 $3,981,305 5/19/2004
2/27/2017 NewNortheastern Technical
College Mulit-use Instructional Building Establish Project $3,500,000 $3,500,000 2/27/2017--
2/21/2017 9925 Clemson University Clemson House Demolition1 Establish Construction Budget $3,705,000 $3,800,000 6/2/2016Construction Budget & Source of Funds agreed to CPIP approval
2/17/2017 9601 Coastal Carolina University 2013-14 Maintenance Needs Close Project $0 $900,000 10/23/20132/17/2017 9604 Coastal Carolina University Football Stadium Field Turf Decrease Budget, Close Project ($101,095) $1,148,905 5/1/20142/17/2017 9612 Coastal Carolina University 2015-16 Maintenance Needs Close Project $0 $140,000 1/20/20162/17/2017 9566 Francis Marion University Deferred Maintenance 2012 Close Project $0 $1,673,547 12/20/20122/17/2017 6030 USC - Columbia Gambrell Hall Repairs Decrease Budget, Close Project ($3,870,883) $4,329,117 8/17/20052/17/2017 6043 USC - Columbia Columbia Campus Utility Infrastructure Repairs Decrease Budget, Close Project ($1,490) $1,348,510 11/15/20072/17/2017 6102 USC - Columbia Athletic Village Tennis Complex Addition Decrease Budget, Close Project ($6,980) $993,020 4/4/20132/17/2017 9576 Winthrop University Withers/WTS Maintenance & Repairs Close Project $0 $159,738 2/18/20152/17/2017 6110 Tri-County Tech Oconee Workforce & Economic Development Center Decrease Budget, Close Project ($750,000) $0 6/1/20152/27/2017 9531 Lander University 312 Barksdale Street Property Acquisition Decrease Budget, Close Project ($46,443) $242,557 4/19/20102/27/2017 9533 Lander University Deferred Maintenance Close Project $0 $547,427 12/6/20112/27/2017 9535 Lander University Deferred Maintenance 2012 Close Project $0 $931,072 1/16/20132/27/2017 9537 Lander University 2013-14 Maintenance Needs Close Project $0 $850,000 4/30/20142/27/2017 9538 Lander University 2014-15 Maintenance Needs Close Project $0 $292,719 10/27/2014
2/27/2017 6088Spartanburg Community
College Tyger River Building CBED Renovation Decrease Budget, Close Project ($5,915) $1,694,085 10/28/2013
Project and Source of Funds Legislatively Authorized
1Project Approved on Year One of CPIP on June 2, 2016. CPIP budget approved was $3,800,000.
Project Expenditures agreed to Statewide Permanent
Improvement Reporting System (SPIRS)
February 2017
Routine Staff Approvals
Close-Outs
Projects Approved on Year One of CPIP
29
50
Agenda Item 5.A Finance and Facilities Committee
Capital Projects & Leases Processed by Staff
Date Approved Project # Institution Project Name Action Category Budget Change Revised Budget Original
Approval Date Staff Approval Critera
3/16/2017 9609 Coastal Carolina University Soccer Complex ConstructionChange Source of Funds, Increase
Budget $4,925,000 $5,000,000 10/1/2015Phase I and II concurrently
approved 10/1/2015
3/9/2017 9931 Clemson University IPTAY Center Expansion/Renovation1 Establish Construction Budget $9,750,000 $10,000,000 6/2/2016
Construction Budget & Source of Funds agreed to CPIP approval
3/8/2017 6030 Midlands Technical College Airport Support Center Up-fit Decrease Budget, Close Project ($286,633) $4,713,367 3/22/20113/9/2017 6120 Williamsburg Tech Electrical Technology/MCSC Lab Renovations Close Project $0 $628,000 10/2/20153/9/2017 6122 Florence-Darlington Cosmetology Building and Land Acquisition Decrease Budget, Close Project ($100,480) $1,722,020 1/8/20163/9/2017 6072 USC-Columbia Harper/Elliott Renovations Change Source, Decrease, Close ($308,529) $3,919,471 11/5/2009
Leases Processed by Staff
Date Approved Action Institution Project Name Rates Term
3/16/2017 Lease Renewal
Clemson University Clemson Computing (CCIT) & Eagles Landing2
Cost per SF - $15.75; Annual
Lease Cost - $276,538.50
(includes operating costs); Total Lease cost:
$829,615.50
3 Years (5/2/2017-5/1/2020)
2Lease Which is Less Than $1,000,000 in a Five-year Period.
March 2017
Routine Staff Approvals
Close-Outs
March 2017
Purpose/Additional Info
Continue to provide space for Clemson's Computing and Information Medicaid IT services staff. This group provides applications programming support for university systems and support for the contract with the SC DHHS for the DHHS Medicaid Information Technology Project
Projects Approved on Year One of CPIP
Project Expenditures agreed to Statewide Permanent
Improvement Reporting System (SPIRS)
1Project Approved on Year One of CPIP on June 2, 2016. CPIP budget approved was $10,000,000.
51