Audit & Business Committee

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October 7, 2021

Audit & Business Committee

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Financial Update

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Update FY2020-21 EOY StatusOperating Budget

Fund balance (2%) $3,435,908Unspent budgets carryforwards $7,150,712Special fees carryforward • Specialized Academic Course Fees $1,882,526• Online Course Fees $1,375,119• Student Activity Fees $ 142,834• Technology Access Fees $ 1,723,100 • Research Indirect Cost $ 1,073,150• Engineering Special Allocation $ 2,945,867

Federal CARES/HEERF funds are not included in these numbers

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Tuition and Fee Revenues Exceeding Budget FY21-22

– Fall 2021 revised revenue estimates (compared to July Proposed Budget)• Summer school $ 232,154• Regular academic year $ ( 73,982)• TNeCampus (including out-of-state) $ 35,081• Out-of-state summer school $ 194,182• Out-of-state regular academic year $ (433,995)• Out-of-state DMBA, MACC, MSN $ ( 29,294)

– Impact of 2% tuition increase $1,324.680– Impact of flat-rate tuition model $5,523,394– Impact of reduced out-of-state domestic tuition (headcount)

• UG non-athlete +20 UG athlete +10• GR non-athlete +326 GR athlete +138

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Capital ProjectsOverview

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Capital Projects 101

• State Funded Projects– Capital Outlay (new construction/major renovation)– Capital Maintenance (renovation and/or maintenance)

• University Funded Projects– Disclosed Projects (new/renovation/maintenance)

• Master Plan– Progress/guidelines for projects

all guided by master plan

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FY23 Capital Outlay Requests

1. Johnson Hall Renovation & Foster Hall Demolition (June BOT)

2. Advanced Construction and Manufacturing Engineering Building• Address State Workforce Needs• Community Engagement

Pending THEC recommendation and upcoming legislative session

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FY23 Capital Maintenance Requests

• Requested Maintenance Projects (Est. $9 million-June BOT)– Craft Center HVAC Upgrades, Generator and Fire Pump Upgrades– Foundation Hall Upgrades– Roaden University Center HVAC Upgrades– Elevator Upgrades

• Subject to state appropriation

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Future Disclosed Projects

• Self-funded– University funds– Private gift funds– TSSBA Bond Financing

• Pro formas to Board of Trustees in October• Request for Approval December Meeting

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West Tucker Stadium (est. $30 million)

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Wings Up Way Parking Garage(3-level 420 space structure located behind Ray Morris Hall; est. $14 million)

Wings Up Way

Stad

ium

Driv

e

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Disclosed Project FY2021-22

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Disclosed Project FY2021-22Campus Funded Projects

Fiscal Year Project Project Cost Project Description2021-22 Lewis Hall Transformer

Replacement$150,000 Replace the transformers and

underground feeder cables that provide electric service to Lewis Hall.

Total Request $150,000

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Approval of Capital Budget FY2022-23 Outlay Revision

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Capital Outlay FY2022-23 (2nd Project)Request for State Funding

Fiscal Year Project Project Cost Project Description2022-23 Advanced Construction and

Manufacturing Engineering Building

$62,400,000 New 80,000 square foot building and demolition of Lewis Hall and Foundry

Funding sources:

State capital appropriations $57,408,000

Gift match (1/3 of match must be from gifts) $1,647,360

Additional match to make 8% (can be gifts or university funds)

$3,344,640

Total Request $62,400,000

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Update Capital Budget Maintenance FY2022-23

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Capital Maintenance Projects FY2022-23 Request for State Funding

Priority Project Project CostFrom June

Project CostUpdated

Project Description

1 Craft Center HVAC Upgrades $1,140,000 $1,140,000 Replace air handlers, fan coil units and pipe insulation.

2 Craft Center Generator and Fire Pump Upgrades

$500,000 $550,000 Install a generator to provide power to sprinkler system. Relocate fire pump and bring up to code.

3 Foundation Hall Upgrades $6,000,000 $6,000,000 Provide building systems and related space upgrades.

4 Roaden University Center HVAC Upgrades

$500,000 $900,000 Replace air handlers.

5 Elevator Upgrades $750,000 $738,000 Upgrades to several elevators on campus.

6 Stormwater System Repairs $500,000 $0 Repair underground piping west of Willow

Total Request $9,390,000 $9,328,000

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Anticipated Disclosed Projects FY2022-23

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Anticipated Disclosed Projects FY2022-23Tennessee Secondary School Bond Authority (TSSBA) & Campus Funded Projects

Fiscal Year Project Project Cost Project Description2022-23 Football Stadium Project $29,900,000 The project includes demolition of

existing west stadium and replacement of stadium with an updated facility in support of football program.

2022-23 Wings Up Way Parking Garage

$13,925,600 Construct a 4-level above grade parking garage. The garage will be cast-in-place concrete with brick and limestone/precast detailing with 412 parking spaces.

Total Request $43,825,600

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Performance Evaluation Analysis

Staff (Non-Faculty) Performance Evaluation Process

• Year 6 of Performance Evaluation Process• Staff evaluations – Focus on individual employee performance– Ensure employees have a voice in their evaluation– Allow for specific goals and achievements to be recognized– Stress job specific performance – Include a self-evaluation component

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Continuing the Change of Non-Faculty Performance Evaluation Culture

• Core competencies aligned to TTU Strategic Plan objectives– Academic Excellence– Student Success– Community Engagement– Meaningful Innovation– Supportive Environment– Value Creation

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• Evaluations scores tie directly back to actual job responsibilities– Annually employees and supervisors review job duties prior to

evaluation to ensure accurate reflection of duties– Employee is rated on their specific job duties

• Employee goals are set for high performance and departmental growth– Annually evaluate accomplishments towards goals

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Continuing the Change of Non-Faculty Performance Evaluation Culture

Staff (Non-Faculty)% of Employees Rated in Performance Category

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42.0%

37.0% 38.0%

34.0%

44.3%46.0%

57.0%

62.0% 61.0%

65.0%

55.3%53.5%

0.6% 1.1%

6.0%

0.9% 0.4% 0.5%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2015-16 2016-17 2017-18 2018-19 2019-20 2020-2021

% of Employees Rated in Category

High Performers Middle Performers Low Performers

Faculty Performance Evaluation Process

• All faculty, both tenured and non-tenured, are evaluated annually by the department chairperson and the college dean – Teaching– Advisement– Research/Scholarship/Creative Activity– Service/Outreach– Administration– Other (as assigned and detailed)

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Faculty % of Employees Rated in Performance Category

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82.0%

77.0%

83.0%81.0% 80.0%

87.0%

16.0%18.0%

15.0% 16.0%18.0%

10.8%

2.0%5.0%

2.0% 3.0% 2.0% 1.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21



Performance Based Compensation

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Performance Based Compensation Model

• 4% Pool for Performance Base Salary Increase– Eligibility• Faculty = 2020 & 2021 Performance Evaluation Scores of acceptable or

better rating• Staff = 2020 & 2021 Performance Evaluation Scores of meets

expectations or better rating • Hire date on or before January 1, 2021• Minimum award = 1%• Maximum award = 7%

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Staff – Distribution of Base Salary IncreaseBy Category

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42%37% 38%

34%

57%62% 61%

65%

1% 1%6%

1%0%

10%

20%

30%

40%

50%

60%

70%

2015-16 2016-17 2017-18 2018-19



Performance Scores

Staff – Distribution of Base Salary Increase(By Classification)

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268

390

29

C&S AD AE

# Receiving Increase

4.27%

4.16%

3.96%

C&S AD AE

Average Increase %

Faculty - Distribution of Base Salary IncreaseBy Category

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82%77%

83% 81%

16% 18%15% 16%

2%5%

2% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2015-16 2016-17 2017-18 2018-19



Performance Scores

Staff SummaryPerformance Increase Distribution

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Highest Inc Avg Inc Lowest Inc

Staff Summary

ALL Middle Performers ALL High Performers

Staff FY21 Performance Score Distribution

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0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

0 1 2 3 4 5 6

Normal Distribution

Nor

mal

Dist

ribut

ion

for D

ata

Set

Performance Score

Example – Staff “Good Distribution”

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%


C&S Middle Performers C&S High Performers

AD Middle Performers AD High Performers

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%



Example – Staff “Needs Improvement”

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%



0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%


C&S Middle Performers C&S High Performers

AD Middle Performers AD High Performers

Faculty SummaryPerformance Increase Distribution

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%


Faculty Summary


Faculty FY21 Performance Score Distribution

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0

0.1

0.2

0.3

0.4

0.5

0.6

0 1 2 3 4 5 6

Normal Distribution

Performance Score

Nor

mal

Dist

ribut

ion

for D

ata

Set

Example – Faculty “Good Distribution”

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%



Example – Faculty “Needs Improvement”

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%



Observations

• Annual evaluations conducted March-May• Raise recommendations submitted June• Raises were generally correlated with evaluation scores• Evaluation scores were not normally distributed• Supervisor training is needed to improve score and raise

distributions• Evaluation forms need further review and revision

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Edmonds Estate Quasi-Endowment

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Tenure Upon Appointment Recommendation

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Documents

Audit & Business Committee