Board of Governors · Professional Nurses and the overall institutional site visit as part of the Higher Learning Commission’s Pathways accreditation process - - each visit was

Board of Governors

Meeting Agenda June 2, 2016

Board Members

Marcia Brand, Chair John Younis, Vice Chair D. Scott Roach, Secretary

John Beatty Ramona Kissel Jason Best, Faculty Eric Lewis

Bridget Cohee Tia McMillan Hunter Cutlip, Student Chad Robinson

Chauncey Winbush

Mary J.C. Hendrix, President

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SHEPHERD UNIVERSITY BOARD OF GOVERNORS MEETING

4:15 p.m. June 2, 2016

Shepherdstown, WV

AGENDA

Regular Session Student Center - Storer Ballroom

210 N. King St., Shepherdstown, WV

1. Call to Order Chair Marcia Brand 2. Public Comments 3. Adoption of the Minutes from April 27, 2016 Board Meeting Chair Brand 4. President’s Report: Approaching First 100 Days on June 6th President Mary Hendrix 5. Campus Safety Annual Data Report Mr. Alan Perdue, General Counsel

Mr. John McAvoy, University Police Chief

6. Annual Approval of the Athletic Program Philosophy President Hendrix 7. Approval of Bond Refinancing Mr. Perdue 8. Quarterly Financial Management Report Mr. James Vigil, Vice President for

Administration and Interim Vice President for Finance

9. Proposed FY2017 Annual Budget Mr. Vigil 10. FY2017 Capital Initiatives Mr. Vigil 11. FY2018 Capital Funding Priorities Mr. Vigil 12. Composite Financial Index Mr. Vigil 13. Election of Officers for 2016-2017 Chair Brand 14. Proposed 2016-2017 Meeting Dates Chair Brand 15. New Business Chair Brand

Adjournment

Shepherd University Board of Governors June 2016

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Shepherd University Board of Governors

Minutes of the Meeting of April 27, 2016

The Shepherd University Board of Governors met on April 27, 2016 in a regular meeting. Members participating were: John Beatty, Jason Best, Marcia Brand, Bridget Cohee, Hunter Cutlip, Ramona Kissel, Eric Lewis, Tia McMillan, D. Scott Roach, Chad Robinson, and John Younis. Also present were Shepherd University President Mary Hendrix, members of the executive staff and others. Board member Chauncey Winbush was absent from the meeting. 1. PUBLIC COMMENTS

No public comments were made.

2. MINUTES OF THE MEETING OF FEBRUARY 25, 2016 M (Roach), S (Best), PASSED, that the minutes of the February 25, 2016 meeting of the Board of Governors be adopted as presented in the agenda book.

3. RECOGNITION OF EMERITUS FACULTY AND STAFF Dr. Christopher Ames, Provost, presented to the Board Dr. Anders Henriksson, Mrs. Ann Henriksson, Dr. Douglas Horner, and Dr. Phillip Simpson, as being recognized as new faculty Emeriti. Mr. Alan Perdue, General Counsel, recognized Ms. Marsha Branch, Ms. Brenda Branson Johnson, Ms. Patt Welsh, and Mr. Paul Schwan, and presented to the Board Ms. Cheryl Layton, as being recognized as new staff Emeriti.

4. PRESIDENT’S REPORT: SUPPORTING EXCELLENCE, INNOVATION AND OPPORTUNITY Dr. Hendrix highlighted several key issues, new initiatives and important opportunities that have taken place since her February 29 arrival to Shepherd. She noted the appointment of James Vigil as Interim Vice President for Finance, replacing Anna Barker, Dr. Chris Ames as Provost, which better aligns our administrative and organizational infrastructure with peer institutions, and Holly Frye as Director of Community and Congressional Relations, in addition to her current role as Assistant Vice President for Student Affairs. A Special Advisory Council to the President was created to advise Dr. Hendrix on new initiatives under consideration and held its first meeting on March 30. The Honorable James Leach, currently at University of Iowa College of Law was selected as this year’s commencement speaker. Dr Hendrix noted Shepherd is trying to respond to budget shortfalls with several revenue generating initiatives, including marketing Shepherd University merchandise in local stores. The 2016 Shepherd University Master Scholars Program will launch this summer. Dr. Hendrix noted the collaborative discussion with Dr. Konrad C. Nau, CEO of University Healthcare Physicians, to strategize about the provision of clinical service, education and research partnerships. President Hendrix welcomed Dr. Nau to the meeting.

5. FACULTY SENATE ANNUAL REPORT Dr. J.B. Tuttle, President of the Faculty Senate and Associate Professor of Education, presented to the Board the Faculty Senate Annual Report. The Senate’s focus has included completion of the second year of the administrator evaluation program, the Academic Structures Task Force is moving forward with the creation of a Business School, and the Consulting/Gateway finance subcommittee is finalizing its report, and members continue to call for transparency, accountability, and inclusive financial decision making. Dr. Tuttle affirmed that the Faculty Senate is positioned


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well to continue working on behalf of the faculty with Provost Ames and Dr. Hendrix. He noted that these are challenging times for universities, and for Shepherd, but proactive, transparent approaches to issues will help Shepherd optimize operations moving forward.

6. ADVISORY COUNCIL OF FACULTY (ACF) ANNUAL REPORT Dr. Sylvia Shurbutt, ACF University Representative and Professor of English, presented to the Board the ACF Annual Report, recapping the State policy issues which the group has worked on during the past year.

7. CLASSIFIED EMPLOYEES COUNCIL (CEC) ANNUAL REPORT Mr. Brian Hammond, Chair of the CEC and Manager of User Support Services, presented to the Board the CEC Annual Report.

8. HOUSING PROJECT UPDATE Mr. James Vigil, Vice President of Administration and Interim Vice President for Finance, presented to the Board a Housing Project Update. The interest rates from USDA are very favorable, and the total cost of the project continues to be well within the levels approved by the Board in December. The aspirational schedule is to close the transactions and begin construction near June 1.

9. PHYSICIAN SERVICES FACILITY INITIATIVE WITH UNIVERSITY HEALTHCARE PHYSICIANS Mr. Vigil, and Dr. Konrad Nau, Dean, WVU School of Medicine Eastern Division and CEO, University Healthcare Physicians, presented to the Board the Physician Service Facility Initiative. The preliminary concept features a facility immediately south of the Softball Field, proximate to WV Route 45, with parking on the west side of University Drive. The facility could serve students, employees, and members of the community.

10. OVERVIEW OF PUBLIC EMPLOYEE INSURANCE PROGRAM Mr. Perdue presented to the Board a general overview of the Public Employee Insurance Program and issues which employees and the University are facing as to premiums and benefits as the State frames the new FY2017 budget.

11. ADJUSTMENT OF ADMINISTRATIVE ORGANIZATION - ATHLETICS M (Lewis), S (Roach), PASSED, that the following resolution be adopted by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the change in the administrative organization to re-align the Director of Athletics as a direct-report of the University President, effective immediately.

12. REPORT OF THE AUDIT AND FINANCE COMMITTEE

Dr. John Younis, Audit and Finance Committee Chair, summarized the discussion of the Committee as presented by Mr. Vigil, Mr. Perdue, and Dr. Marie DeWalt, Director of Human Resources. The presentations included a Housing Project Update and the Human Resources Annual Data Report.

13. REPORT OF THE ENROLLMENT MANAGEMENT AND UNIVERSITY ADVANCEMENT COMMITTEE Mr. Scott Roach, Enrollment Management and University Advancement Committee Chair, summarized the discussions of the Committee as presented by Mr. Bill Sommers, Vice President for Enrollment Management, and Mr. Chris Sedlock, Vice President for University Advancement. The presentations included an Enrollment Update and a University Advancement Update. Mr


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Roach expressed appreciation for all of the contributions made by so many to make the inauguration successful.

14. REPORT OF THE ACADEMIC AFFAIRS AND STUDENT AFFAIRS COMMITTEE Ms. Bridget Cohee, Academic Affairs and Student Affairs Committee Chair, summarized the discussion of the Committee as presented by Dr. Chris Ames, Provost. The presentation included a review of the 2015-2016 Academic Program Reviews, a proposed addition of a Jazz Concentration in Bachelor of Music Performance and a review of the Higher Learning Commission 2016 Team Report Summary. Members encouraged enhanced efforts in tracking the careers of graduates.

15. RECOMMENDATION FOR APPROVAL OF 2015-2016 ACADEMIC PROGRAM REVIEWS M (McMillan), S (Younis), PASSED, that the following resolution be adopted by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the program reviews of The Department of Contemporary Art and Theater, English, Family and Consumer Sciences (FACS), Modern Languages, Department of Music, Sociology, Master of Arts – Teaching (M.A.T.), and the Board adopts the institutional recommendations that each program be continued at the current level of activity. The Board authorizes the President to submit these reviews on its behalf to the West Virginia Higher Education Policy Commission.

16. RECOMMENDATION FOR APPROVAL OF JAZZ CONCENTRATION IN BACHELOR

OF MUSIC PERFORMANCE M (Kissel), S (Best), PASSED, that the following resolution be adopted by the Board:

RESOLVED, that the Shepherd University Board of Governors approves the addition of the Bachelor in Music Performance - Jazz, effective Academic Year 2016-2017.

17. MOTION TO EXECUTIVE SESSION

M (Cohee), S (Brand), PASSED, that pursuant to Section 4 of Article 9A of Chapter 6 of the WV Code, it was moved that the Board enter into executive session for the purpose of discussion of matters relating to honoraria and awards. At the conclusion of the executive session, the Board returned to open session.

18. APPROVAL OF HONORARY DOCTORATE M (Best), S (Cohee) PASSED, that the following resolution be adopted by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the awarding of the honorary Doctorate of Laws to The Honorable James A. Leach, in recognition of his extraordinary national service; and

FURTHER RESOLVED, That the Shepherd University Board of Governors approves the awarding of the honorary Doctorate of Humane Letters to Mr. William R. “Randy” Smith, in recognition of his extraordinary service to the Eastern Panhandle of West Virginia.


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19. NEW BUSINESS Dr. Best noted that the Board of Governors has previously received more comprehensive data benchmark reports and expressed the desire to see the Board develop a consensus for data that needs to be received and assessed for future planning.

___________________________ ___________________________ Marcia Brand D. Scott Roach Chair Secretary

Shepherd University Board of Governors June 2016 Agenda Page 4-1

Shepherd University Board of Governors June 2, 2016 Agenda Item No. 4

PRESIDENT’S REPORT: APPROACHING FIRST 100 DAYS ON JUNE 6TH

Supporting Excellence, Innovation, and Opportunity Working with a talented leadership team and dedicated faculty, staff, and students, we have been able to address key issues, advance new initiatives, and seize important opportunities for Shepherd University. Executive highlights of these activities are provide below for your review: Appointed Mr. James Vigil as Interim Vice President for Finance, replacing Ms. Anna Barker

who left Shepherd to pursue a special Girls, Inc. Mentoring Program in Maryland. A formal search for a new Vice President for Finance is underway.

Participated (with extreme pride) in the dual accreditation visits from the Commission on Collegiate Nursing Education and the West Virginia Board of Examiners for Registered Professional Nurses and the overall institutional site visit as part of the Higher Learning Commission’s Pathways accreditation process - - each visit was very positive and complimentary to Shepherd’s outstanding faculty, staff, and students.

Celebrated the extraordinary academic and athletic accomplishments of Shepherd’s faculty, directors, staff, and students as they distinguished themselves in state and national competitions.

Appointed Dr. Chris Ames as Provost of Shepherd University to represent the institution and president at key events. The distinguished academic position of Provost better aligns our administrative, organizational infrastructure with that of our peer institutions.

May 7th Commencement Ceremony: Selected The Honorable James A. Leach, Chair in Public Affairs, Visiting Professor of

Law and Senior Scholar at the University of Iowa, as the Commencement speaker. Mr. Leach joined the College of Law after serving most recently as the Chairman of the National Endowment for the Humanities. He is best known for his 30 years of service as a representative in Congress where he chaired the Banking and Financial Services Committee, the Subcommittee on Asian and Pacific Affairs, and the Congressional-Executive Commission on China. Following his time in Congress, he was a Professor at the Woodrow Wilson School at Princeton University and Interim Director of the Institute of Politics and Lecturer at the John F. Kennedy School of Government at Harvard University. He spoke about the importance of promoting civility in politics and personal discourse.

Selected Dr. Sylvia Manning and Mr. Thomas Blondell as recipients of the 2016 President’s Award during commencement, recognizing their special contributions to Shepherd during their time here.

To begin to address the FY2017 budget shortfall, specific initiatives have been outlined under the categories of Revenue Generating and Cost Savings. A few initiatives for generating additional revenue include: 1) 2016 Shepherd Master Scholars Program, leveraging the CATF events with expert lectures on nutrition, wellness, and lifelong learning; 2) signed contract with OhioPyle to sell Shepherd University merchandise to local stores. To date, 13 stores signed on and are selling Shepherd merchandise. We are finalizing licensing agreements with Knights Apparel and Stockdale Technologies to place Shepherd apparel and decal/bumper stickers in Target and Wal-Mart stores in the near future; and 3) bond refinancing.


Orchestrated the development of a list of Embassies in Washington, D.C., representative of the 17 countries our international students currently hail from, for the purpose of engaging them in our university activities and as supporters of additional recruitments.

Collaborative discussions with Konrad C. Nau, MD, Dean, WVU School of Medicine/Eastern Division, to provide clinical service, education, and research partnerships at a physician services facility to be built on Shepherd’s West Campus.

One of the significant leadership job postings is for the Chair of Business Administration, which we are proposing to expand to a more encompassing role for a Business School initiative – funded by support from the business community in a public-private partnership. This search has identified two top candidates for campus interviews.

Launched Monthly Institutional Highlights, starting with March, to promote faculty, staff, and student activities – by our Office of University Communications.

Promoted Instagram Photo Contest #myShepherdU over April 14-15 to advance Shepherd’s photo image; a drone-created video of the campus is in progress.

Inauguration partnership sponsors contributed more than $55k for scholarships to assist in recruitment of this fall’s entering class, the Shepherd Class of 2020, and to defray the costs of Inauguration events.

Meetings have occurred with key community stakeholders to discuss enhancement and renovation of a few facilities, parking challenges, and the cooperation between Shepherd University and the local police department.

We welcomed Mr. Bill Sommers as the Vice President for Enrollment Management (recruited from Shippensburg University).

Appointment of Ms. Holly Frye as Director of Community and Congressional Relations, in addition to her current duties as Assistant Vice President for Student Affairs.

Ongoing projects include:

Shepherd is in discussion with candidates to host a Gubernatorial Debate. New summer internship programs for students (http://www.shepherd.edu/summer-internships),

which includes the newly established Invenergy and Shepherd partnership to fund a student intern at the West Virginia Beech Ridge facility every summer in perpetuity.

Discussions with key stakeholders to launch a Center for Innovation. Development of improved business hospitality areas at Ram Stadium, funded by community

partnerships, including the provision of several food vendors. Introduction of a university-community program series, starting in the Fall of 2016, introducing

topics related to: 1) Financial planning for college, life’s adventures, and retirement; 2) virtual tours of landmarks in the U.S., Europe, Asia and other countries, with local cuisine from each country served by our distinguished chef and staff; 3) the safety of consumable products and the impact on our health; and 4) special presentations on the newly awarded Nobel prizes and their impact on society.

Implementation of a strategic plan for alternative energy conservation at “Sustainable Shepherd.” Discussions are in progress with stakeholders to facilitate additional partnerships with the local

VA Medical Center. Separate conversations are focused on initiating an ROTC program at Shepherd, possibly as an affiliate member of a university that already has a program in place and offers the requisite military science courses.

Initiation of banner signage at strategic locations on Shepherd’s campus – highlighting noteworthy academic and athletic achievements.

Our greatest challenges are ahead – anticipating several additional years of fiscal challenges for the State of West Virginia, which only supports 16% of our current budget, while maintaining momentum and advancing our mission. Shepherd is in 10th (last) place for funding from the State, with a $2 million difference between us and #9 (West Liberty).

http://www.shepherd.edu/summer-internships




CAMPUS SAFETY ANNUAL DATA REPORT Each year in the fall, Shepherd University publishes a comprehensive report regarding public safety issues and polices, in compliance with the Clery Act. This annual report addresses not only crime statistics, but also all of our campus policies and practices relating to law enforcement, fire safety, missing students, and public safety alerts. The Annual Campus Security and Fire Safety Report is published each year on October 1, and is available on the Shepherd University website. The following pages reflect the calendar year 2015 updates of the charts for campus crime data, as well as the new 2015 fire safety information. The format of the annual Clery Act crime data significantly changed, effective for this fall’s report. General Counsel Alan Perdue and University Police Chief John McAvoy will present the Campus Safety Annual Data Report. TABLE 1 – On Campus Occurrences Total Occurrences on Campus Criminal Offense 2010 2011 2012 2013 2014 2015 1. Murder/Non-negligent manslaughter 0 0 0 0 0 0 2. Negligent manslaughter 0 0 0 0 0 0 3. Sex offenses – Forcible 9 10 9 8 - - 4. Rape - - - - 6 3 5. Fondling - - - - 1 2 6. Sex offense – Non-forcible 0 0 0 0 - - 7. Incest - - - - 0 0 8. Statutory rape - - - - 0 0 9. Robbery 0 0 1 1 1 0 10. Aggravated assault 1 0 0 0 0 0 11. Burglary 9 8 3 3 0 0 12. Motor vehicle theft (Do not include theft from motor vehicle) 0 0 0 0 0 0 13. Arson 0 0 0 0 0 0 TABLE 2 – VIOLENCE AGAINST WOMEN ACT [VAWA] Offenses – On Campus Total Occurrences on Campus Criminal Offense 2010 2011 2012 2013 2014 2015 a. Domestic violence - - - 3 0 1 b. Dating violence - - - 0 0 0 c. Stalking - - 0 0 0 1


TABLE 3 – Residence Halls (a subset of Table 1) Total Occurrences in On-Campus

Student Housing Facilities Criminal Offense 2010 2011 2012 2013 2014 2015 a. Murder/Non-negligent manslaughter 0 0 0 0 0 0 b. Negligent manslaughter 0 0 0 0 0 0 c. Sex offenses – Forcible 9 6 9 7 - - d. Rape - - - - 5 3 e. Fondling - - - - 1 2 f. Sex offense – Non-forcible 0 0 0 0 - - g. Incest - - - - 0 0 h. Statutory rape - - - - 0 0 i. Robbery 0 0 0 0 0 0 j. Aggravated assault 0 0 0 0 0 0 k. Burglary 6 7 3 3 0 0 l. Motor vehicle theft (Do not include theft from motor vehicle) 0 0 0 0 0 0 m. Arson 0 0 0 0 0 0 TABLE 4 – VAWA Offenses – Residence Halls Total Occurrences in On-Campus

Student Housing Facilities Criminal Offense 2010 2011 2012 2013 2014 2015 a. Domestic violence - - - 3 0 1 b. Dating violence - - - 0 0 0 c. Stalking - - 0 0 0 1 TABLE 5 – Non-Campus Occurrences [areas immediately adjacent] Total Occurrences in or on

Non-Campus Buildings or Property Criminal Offense 2010 2011 2012 2013 2014 2015 a. Murder/Non-negligent manslaughter 0 0 0 0 0 0 b. Negligent manslaughter 0 0 0 0 0 0 c. Sex offenses – Forcible 2 2 0 0 - - d. Rape - - - - 0 0 e. Fondling - - - - 0 0 f. Sex offense – Non-forcible 0 0 0 0 - - g. Incest - - - - 0 0 h. Statutory rape - - - - 0 0 i. Robbery 0 0 0 0 0 0 j. Aggravated assault 0 0 0 0 0 0 k. Burglary 0 0 0 0 0 0 l. Motor vehicle theft (Do not include theft from motor vehicle) 0 0 0 0 0 0 m. Arson 0 0 0 0 0 0


TABLE 6 – VAWA Offenses – Non-Campus Occurrences Total Occurrences in or on

Non-Campus Buildings or Property Criminal Offense 2010 2011 2012 2013 2014 2015 a. Domestic violence - - - 0 0 0 b. Dating violence - - - 0 0 0 c. Stalking - - 0 0 0 0 TABLE 7 – Public Property Total Occurrences on Public Property Criminal Offense 2010 2011 2012 2013 2014 2015 a. Murder/Non-negligent manslaughter 0 0 0 0 0 0 b. Negligent manslaughter 0 0 0 0 0 0 c. Sex offenses – Forcible 0 0 0 1 - - d. Rape - - - - 1 0 e. Fondling - - - - 0 0 f. Sex offense – Non-forcible 0 0 0 0 - - g. Incest - - - - 0 0 h. Statutory rape - - - - 0 0 i. Robbery 0 0 1 1 1 0 j. Aggravated assault 0 0 0 0 0 0 k. Burglary 0 0 0 0 0 0 l. Motor vehicle theft (Do not include theft from motor vehicle) 0 0 0 0 0 0 m. Arson 0 0 0 0 0 0 TABLE 8 – VAWA Public Property Occurrences Total Occurrences on Public Property Criminal Offense 2010 2011 2012 2013 2014 2015 a. Domestic violence - - - 0 0 0 b. Dating violence - - - 0 0 0 c. Stalking - - 0 0 0 0 TABLE 9 – On Campus Weapons / Drugs / Alcohol Occurrences Number of Arrests Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. - - 0 0 0 0 b. Drug abuse violations - - 6 9 5 9 c. Liquor law violations - - 10 7 19 28 TABLE 10 – Residence Halls Weapons / Drugs / Alcohol Occurrences Number of Arrests Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. - - 0 0 0 0 b. Drug abuse violations - - 3 3 3 6 c. Liquor law violations - - 3 3 9 16


TABLE 11 – Public Property Weapons / Drugs / Alcohol Occurrences Number of Arrests Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. - - 0 0 0 0 b. Drug abuse violations - - 3 5 2 3 c. Liquor law violations - - 7 4 10 11 STUDENT CONDUCT DISCIPLINE TABLE 12 – On Campus Number of Persons Referred for

Disciplinary Action Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. 0 0 0 0 0 0 b. Drug abuse violations 0 1 7 3 10 14 c. Liquor law violations 230 215 164 87 244 106 TABLE 13 – Residence Halls Number of Persons Referred for

Disciplinary Action Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. 0 0 0 0 0 0 b. Drug abuse violations 0 1 7 3 10 14 c. Liquor law violations 208 208 163 82 234 106 TABLE 14 – Public Property Number of Persons Referred for

Disciplinary Action Crime 2010 2011 2012 2013 2014 2015 a. Weapons: carrying, possessing, etc. 0 0 0 0 0 0 b. Drug abuse violations 0 0 0 0 0 0 c. Liquor law violations 22 7 1 5 10 0


FIRE REPORT

Housing Facilities Total Number of Fires Name of Facility Street Address 2013 2014 2015

1. Dunlop Hall 604 University Drive 0 1 0 2. Boteler Hall 33 Campus Hill Drive 0 0 0 3. Burkhart Hall 155 Campus Hill Drive 0 0 0 4. Gardiner Hall 405 North King Street 0 0 0 5. Kenamond Hall 501 North King Street 0 0 0 6. Lurry Hall 29 Campus Hill Drive 0 0 0 7. Printz Hall 554 University Drive 0 0 0 8. Martin Hall 25 Campus Hill Drive 0 0 0 9. Miller Hall 202 Duke Street 0 0 0 10. Moler Hall 133 Campus Hill Drive 0 0 0 11. Shaw Hall 77 West Campus Drive 0 1 0 12. Thatcher Hall 127 West Campus Drive 0 0 0 13. Turner Hall 413 North King Street 0 0 0 14. Yost Hall 117 Campus Hill Drive 0 0 0


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ANNUAL APPROVAL OF THE ATHLETIC PROGRAM PHILOSOPHY National Collegiate Athletic Association (NCAA) regulations require the Shepherd University Board of Governors to review and approve the institutional Athletic Program Philosophy on an annual basis. The current Athletic Program Philosophy is contained on the following page. There are no recommendations for changes this year. The following resolution is recommended for adoption by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the Shepherd University Athletic Program Philosophy for the period July 1, 2016 – June 30, 2017 as presented in the agenda materials of June 2, 2016.


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SHEPHERD UNIVERSITY Athletic Philosophy

At Shepherd University, athletes shall be treated as all other students in reference to admissions, scholarships, programs of study, part-time employment, eligibility, and participation in activities representing the University. Shepherd University provides opportunity to all prospective and current members of the student body, faculty, and staff on the basis of individual qualifications and merit without regard to race, sex, sexual orientation, religion, age, national origin, or disability. The purposes of the University’s Athletic Program are to:

provide friendly competition and cooperation with other colleges and universities in a sportsmanship-like game environment;

develop the physical, mental, emotional, social and moral well-being of each participant;

stimulate participants to a high caliber of citizenship;

furnish recreational value to University students, faculty, and community;

provide practical experiences for careers in coaching and teaching; and

provide opportunities for community engagement between athletes, Shepherd University and the greater Shepherd community.

In order that the University may continue to carry on intercollegiate athletics programs pursuant to policies recommended by the North Central Association of Colleges and Secondary Schools, the following minimum standards have been specifically approved by the University.

a. The conduct of the intercollegiate athletics program is exercised by the President upon the recommendation of the Athletics Committee, which is composed of representatives of the faculty, staff and the student body.

b. Students who plan to participate in athletics, like all other students, are admitted by the Office of Admissions subject to policies set by the Committee on Admissions and Credits. Athletes are required to maintain the same academic standards as non-athletes.

c. The award of any student aid, student loan, or student employment to an athlete is made through the regular agency of the University for aid to all students. Such aids are awarded on a basis, which will not discriminate for or against presumed or recognized athletes. An athlete is required to give full and honest return for aid received.

d. All athletic funds are controlled by the Vice President for Administration and Finance. An audit of the receipts and disbursements of these funds is made annually by the auditors of the State and a report made to the President and to the Board of Governors.

e. An effort is made to compete with colleges having similar educational and athletic policies.

f. Shepherd University is a member of the Mountain East Athletic Conference and the National Collegiate Athletic Association (NCAA) - Division II. As a member, the University is committed to the principles of sportsmanship and ethical conduct, rules compliance and amateurism. All eligibility rules from these associations govern the intercollegiate program.



APPROVAL OF BOND REFINANCING

Shepherd University presently has three outstanding series of bonds. The Series 2005 Bonds were issued for the construction of Dunlop and Printz Halls and have an outstanding principle of approximately $16.5 million. The Series 2007 Bonds were issued for the construction of the Wellness Center and have an outstanding principle of approximately $15.3 million. The Series 2013 Bonds were a refinancing of bonds originally issued in 2003 and 2004 which had funded West Campus infrastructure and residence hall renovations and have an outstanding principle of approximately $6.2 million. Prevailing interest rates for municipal bonds suggest that a refinancing of the Series 2005 and Series 2007 bonds on a 20 year schedule could provide total savings of more than $5 million, with more than $250,000 annually saved from debt service payments. The aggregate savings would be more than 13%, with current interest rates. These preliminary assessments were made presuming an institutional credit rating of A3, and the University’s credit rating was adjusted to A3 “Outlook Stable” on May 5, 2016. The University has Piper Jaffray as underwriter and Bowles Rice as bond counsel available, under the established contracts, to provide services for a refinancing. Interest rates may change during the coming weeks. Any refinancing that provides more than a 5% aggregate savings would provide a significant net financial benefit for the University. Staff will be available to discuss the refinancing proposal with the Board at the meeting. The following resolution is recommended for adoption by the Board:

RESOLVED, That the Shepherd University Board of Governors conditionally approves the refinancing of the Series 2005 and Series 2007 Bonds. RESOLVED FURTHER, that the Board of Governors directs the President to consult with and gain final approval of the refinancing by the Executive Committee, upon such parameters as to the terms as the Executive Committee deems appropriate and to include the requirement that the aggregate institutional savings be not less than 5%.

BE IT FURTHER RESOLVED, that the Board delegates to the Executive Committee the authority to act on behalf of the Board in all respects in the further review and final approval of the refinancing of the Series 2005 and Series 2007 Bonds.


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QUARTERLY FINANCIAL MANAGEMENT REPORT Mr. James Vigil, Vice President for Administration and Interim Vice President for Finance, will present the quarterly financial management report. Included are three reports for the third quarter of FY2016: 1) Statement of Net Assets, 2) Budget to Actual Report, and 3) Statement of Revenues, Expenses and Other Changes which shows a year-to-year comparison with FY2015. Highlights when comparing FY2016 with FY2015 include:

4.8% or $1.979 million, decrease in Total Operating Revenues 1.0% or $463,000, decrease in Total Operating Expenses 7.2% or $911,000, decrease in Total Non-Operating Revenues and Expenses $2.405 million decrease in Net Assets 7.2% or $1.880, million decrease in Cash and Cash Equivalents

STATEMENT OF NET ASSETS Assets Changes in assets from the prior year include decreases in Cash and Cash Equivalents, Accounts Receivable, and Grants and Contracts. Cash and Cash Equivalents – At the end of the third quarter, the University had sufficient cash and other resources on hand to meet operating and capital requirements. Cash balances have decreased from FY2015 to FY2016 primarily due to a decline in enrollment, resulting in reduced collection of Tuition and Fees and Auxiliary Enterprises revenue. A mid-year rescission in the University’s State appropriation of $393,000 was also a contributing factor. Cash also reflects a $463,000 reduction in expenses. Accounts Receivable – The majority of Accounts Receivable is associated with student balances. The change in Student Receivables of approximately $138,000 takes into account the decline in enrollment and a resulting decrease in tuition, fees, dining and residence hall revenue. Grants and Contracts Receivable – The decrease of approximately $59,000 is a result from timelier billing of grant expenses compared to FY2015. Loans Receivable, Net – The increase of $47,000 is attributed to increased Perkin’s Loan awards. Capital Assets Net – This reflects a decrease of $3.85 million which is attributed to a slight increase in accumulated depreciation of $197,000, offset by any additions to fixed assets or disposal of assets. Capital Assets will continue to decline in FY2017 as efforts to preserve cash reserves are implemented by minimizing capital spending.


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Other Noncurrent Assets – The increase of $307,000 reflects a State-mandated no hardship arrears conversion that applied to all State agencies. In September 2014, employees who were still being paid on the final day of each semi-monthly work period were converted to arrears pay (a delay of an additional half-month). These employees did not miss a pay, per State law they were “loaned” this amount and a corresponding receivable was recorded. An employee’s final paycheck is due a half-month after the time of their separation from service. A deduction will be made against this final check, to collect the receivable. Liabilities Total Liabilities include increases in Accrued Liabilities with decreases in Accounts Payable, Deferred Revenue, Leases and Bond Payables resulting in a .99% decrease in Total Liabilities. Accounts Payable – Cautious year-to-date spending and timely payment of expenses has produced a decrease in Accounts Payable of $177,000. Accrued Liabilities – The increase of $334,000 is due to an accrual of four months of bond interest in FY2016 compared to an accrual of three months of bond interest in FY2015. Other Post-Employment Benefits Non-Current – Increased $550,000 in accordance with an actuarial study conducted by the State. Net Pension Liability GASB 68 – $449,000 reflects the promised benefits to employees for services performed compared to the assets set aside to pay for those benefits. Leases Payable – The Decrease of $84,000 resulting from retirement of The Football Field Turf Lease Purchase Finance Agreement. Bonds Payable – Decrease of $1.47 million resulting from bond premium payments consisting of more principal. STATEMENT OF REVENUES, EXPENSES AND OTHER CHANGES Operating Revenues The University has generated 88.6% of the projected Operating Revenue for the fiscal year. Tuition and Fees are at 88% of budget with Summer I and a portion of Summer III still to be recorded in FY2016. Operating revenue for FY2016 is projected to be at 93% of budget at June 30. The year-over-year comparison of Federal Grants and Contracts reflects an increase of $493,000 primarily from a Nursing Inter-Professional Collaboration grant. The FY2016 budget reflects new grants and expired grants overstating budgeted revenue. The FY2017 budget will be adjusted to reflect expired, current and new grants and contracts. State and local grants are at 84.8% of the budget. The majority of the revenue is generated through the receipt of State-provided scholarships. With the decline in enrollment and the expiration of budgeted grants, revenue will fall short of budget. The FY2017 budget will be adjusted to reflect expired, current, and new grants and contracts.


Agenda Page 8-3

Revenue generated from the operation of Auxiliary Enterprises is at $16.8 million, down $837,000 from $17.7 million last fiscal year. However, a decrease of $474,000 can also been seen in expenses resulting in a FY2016 third quarter surplus of $6.82 million compared to $7.18 million for FY2015. Operating Expenses The University has expended 74% of budgeted Operating Expenses compared to 74.8% for the same time last year, reflecting continued focus on reducing costs during these fiscally challenging times. The Instruction increase of $292,000 is related to timelier posting of p-card expenses for supplies and services in FY2016 compared to FY2015. Research is reflecting expenditures of $183,000. This is the result of increased grant activity. Non-Operating Revenues and Expenses Total Non-Operating Revenues and Expenses reflect actuals at 82.3% of budget. Non-Operating Federal Revenue is at 90%. This line is for PELL and the 9.1% decline from FY2015 corresponds to the decline in enrollment and a decline in eligibility. Gifts, at $1.087 million, are at 101.6% of budget, and are comparable to FY2015. The majority is in the form of student scholarships. Other Revenues, Expenses, Gains or Losses Expenses for Other Post-Employment Benefits (OPEB) are at 56.9% of budget and are projected to be below budget at yearend. This is due to an overstatement in the number of policies to be included in the budget calculation. Overall, at the end of the third quarter, total Net Assets are $95.2 million compared to $100.4 million last year. The change is primarily driven by a decrease in the University’s State appropriation, a decline in significant capital investments and declining enrollment.


Agenda Page 8-4

Table 1

Actual Actual3/31/16 3/31/15 % Change

ASSETSCurrent assets:

Cash and cash equivalents $24,176 26,056 -7.22%Accounts receivable net 689 827 -16.66%Grants and contracts receivable, net 746 805 -7.32%Inventories 423 428 -1.21%Loans Receivable 100 100 0.09%Other assets 2 - n/a

Total Current assets 26,136 28,216 -7.37%

Noncurrent assets:Restricted cash and cash equivalents 0 1 -99.25%Loans receivable, net 419 372 12.77%Capital assets net 127,487 131,342 -2.93%Other Noncurrent assets 307 - n/a

Total Noncurrent assets 128,214 131,715 -2.66%

TOTAL ASSETS $154,349 $159,931 -3.49%

Total Deferred Outflows of Resources (GASB 68) 43 - n/a

TOTAL ASSETS & Deferred Outflows (GASB 68) $154,392 $159,931 -3.46%

LIABILITIESCurrent liabilities:

Accounts payable $530 707 -25.10%Accrued liabilities 2,842 2,508 13.30%Due to the Commission - - n/aDue to other State agencies 9 - n/aDeferred revenue 128 225 57.10%Long-term liabilities - current portion 2,319 2,341 -0.92%

Total Current liabilities 5,828 5,781 0.82%

Noncurrent liabilities:Advances from federal sponsors 512 527 -2.91%Deposits 175 189 -7.64%Other post employment benefits 10,688 10,138 5.42%Net Pension Liability (GASB 68) 449 - n/aCompensated absences 421 472 -10.80%Leases Payable 505 589 -14.32%Bonds Payable 40,319 41,791 -3.52%

Total Noncurrent liabilities 53,068 53,706 -1.19%

TOTAL LIABILITIES $58,897 $59,487 -0.99%

Total Deferred Inflows of Resources (GASB 68) 235 - n/a

TOTAL LIABILITIES & Deferred Inflows (GASB 68) $59,131 $59,487 -0.60%

NET ASSETS 95,261 100,444 -5.16%

TOTAL LIABILITIES AND NET ASSETS 154,392 $159,931 -3.46%

Shepherd UniversityStatement of Net AssetsAs of March 31, 2016

(Dollars in Thousands)


Agenda Page 8-5

Table 2

FY16 FY16Budget Actual $ %Annual YTD Variance Budget

OPERATING REVENUES Revised Tuition and Fees $19,304 $16,982 $2,321 88.0% Federal Grants and Contracts 1,284 785 499 61.1% State and Local Grants and Contracts 4,663 3,954 709 84.8% Private Grants and Contracts 22 36 (14) 162.3% Sales and Services of Educational Activities 32 30 2 94.9% Auxiliary Enterprises 18,302 16,859 1,443 92.1% Other Operating Revenues 500 420 80 84.0% TOTAL OPERATING REVENUES 44,106 39,067 5,040 88.6%

OPERATING EXPENSESCore Operating Expenses Primary Mission Costs Instruction 17,844 12,707 5,137 71.2% Academic Support 3,322 2,486 836 74.8% Student Services 3,832 2,501 1,331 65.3% Scholarships & Fellowships 3,448 2,652 795 76.9% Subtotal Primary Mission Costs 28,446 20,346 8,100 71.5% Other Core Operating Expenses Operations and Maintenance 4,765 3,653 1,112 76.7% Institutional Support 6,090 4,653 1,437 76.4% Research 290 183 107 63.0% Public Service 229 176 53 76.8% Subtotal Other Core Operating Expenses 11,373 8,664 2,710 76.2% Total Core Operating Expenses 39,819 29,010 10,809 72.9%

Auxiliary Expenses 13,114 10,037 3,078 76.5% Depreciation Expense 7,362 5,555 1,807 75.5% Transfers and Other (Additions) Subtractions 293 207 86 70.6% TOTAL OPERATING EXPENSES 60,589 44,809 15,780 74.0%

NONOPERATING REVENUES AND EXPENSES State Appropriations 9,438 6,980 2,458 74.0% Nonoperating federal revenue 5,650 5,084 566 90.0% Investment Income 31 40 (9) 128.3% Interest on capital asset related debt (1,941) (1,456) (485) 75.0% Gifts 1,070 1,087 (17) 101.6% Fees assessed by the Commission for interest and reserves (38) (38) - 100.0%TOTAL NONOPERATING REVENUES AND EXPENSES 14,211 11,698 2,513 82.3%

Income (Loss) Before Other Revenues, Expenses, Gains or Losses (2,272) 5,956 (8,228) -262.2%

OTHER REVENUES, EXPENSES, GAINS OR LOSSES CTC Net Assets Transfer - (4) 4 n/a Other Post Employment Benefits (OPEB) expense (801) (456) (345) 56.9%

Increase (Decrease) in Net Assets (3,073) 5,496 (8,569) -178.8%

Shepherd UniversityBudget to Actual Report

For The Period From July 1, 2015 to March 31, 2016(Dollars in Thousands)


Agenda Page 8-6

Table 3

Nine Months Nine Months Percent Dollar Ended Ended Change Change 3/31/16 3/31/15 Annual Annual

OPERATING REVENUES Tuition and Fees $16,982 $18,409 -7.7% ($1,427) Federal Grants and Contracts 785 292 168.8% 493 State and Local Grants and Contracts 3,954 4,129 -4.2% (175) Private Grants and Contracts 36 - n/a 36 Sales and Services of Educational Activities 30 29 5.1% 1 Auxiliary Enterprises 16,859 17,696 -4.7% (837) Other Operating Revenues 420 491 -14.5% (71) TOTAL OPERATING REVENUES 39,067 41,046 -4.8% (1,979)

OPERATING EXPENSESCore Operating Expenses Primary Mission Costs Instruction 12,707 12,415 2.3% 292 Academic Support 2,486 2,529 -1.7% (43) Student Services 2,501 2,836 -11.8% (335) Scholarships & Fellowships 2,652 2,868 -7.5% (216) Subtotal Primary Mission Costs 20,346 20,648 -1.5% (302) Other Core Operating Expenses Operations and Maintenance 3,653 3,656 -0.1% (3) Institutional Support 4,653 4,607 1.0% 46 Research 183 109 67.5% 74 Public Service 176 163 7.8% 13 Subtotal Other Core Operating Expenses 8,664 8,535 1.5% 129 Total Core Operating Expenses 29,010 29,183 -0.6% (173)

Auxiliary Expenses 10,037 10,511 -4.5% (474) Depreciation Expense 5,555 5,358 3.7% 197 Transfers and Other (Additions) Subtractions 207 220 -5.9% (13) TOTAL OPERATING EXPENSES 44,809 45,272 -1.0% (463)

NONOPERATING REVENUES AND EXPENSES State Appropriations 6,980 7,456 -6.4% (476) Nonoperating federal revenue 5,084 5,593 -9.1% (509) Investment Income 40 15 167.2% 25 Interest on capital asset related debt (1,456) (1,506) -3.3% 50 Loss on disposal of equipment - - n/a - Gifts 1,087 1,089 -0.2% (2) Payments on behalf of Shepherd University - - n/a - Fees assessed by the Commission for interest and reserves (38) (38) -0.5% 0 TOTAL NONOPERATING REVENUES AND EXPENSES 11,698 12,609 -7.2% (911)

Income (Loss) Before Other Revenues, Expenses, Gains or Losses 5,956 8,383 -29.0% (2,427)

OTHER REVENUES, EXPENSES, GAINS OR LOSSES Capital Grants and Gifts 0 - n/a 0 CTC Net Assets Transfer (4) (4) 5.3% (0) Other Post Employment Benefits (OPEB) expense (456) (478) -4.5% 22

Increase (Decrease) in Net Assets 5,496 7,901 -28.2% (2,405)

Shepherd UniversityStatement of Revenues Expenses and Other ChangesFor The Period From July 1, 2015 to March 31, 2016

(Dollars in Thousands)



PROPOSED FY2017 ANNUAL BUDGET

The FY2017 budget reflects an increase in operating revenue of $139,000 or 0.31%. Total operating expenses are budgeted to increase $1.175 million or 1.94%, and the University’s State appropriation is budgeted to be reduced by $235,952 or 2.5%. Overall, the FY2017 budget reflects a projected decrease in Net Assets of $3.9 million. After three consecutive years of reductions to the University’s State appropriation totaling $1.8 million and significant cuts to Shepherd’s operating budgets, the University has built a proposed FY2017 budget that addresses mandatory increases in operating expenses and funds over budget conditions in critical student services areas. It also reflects an investment in Shepherd’s faculty and staff and also in its future by completing the funding for the FY2016 pay raise of 2% for all employees, establishing a new English as a Second Language (ESL) program and adding a Major Gifts Officer position in University Advancement. In order to sustain Shepherd’s solid cash position through another challenging year we have developed a proposed plan to preserve cash in FY2017 by significantly reducing capital spending. The plan, reflected in the attached operating budget statement, includes all transactions impacting cash and multiple State appropriation rescission scenarios. It also reflects a FY2017 capital projects list that only consists of projects that are necessary to enhancing the student experience and protecting building envelopes. The plan also takes into account a reduction in departmental capital spending if the additional appropriations cuts occur. Enrollment

Full-Time Headcount – Fall has been adjusted to reflect historical persistence rates from Fall to Fall, by class.

Full-Time Headcount – Spring has been adjusted to reflect a projected increase in retention rates from Fall to spring.

Part-time credit hours reflect an increase in summer school enrollment. Graduate reflects a flat enrollment projection for FY2017 compared to FY2016.

FY2016 to FY2017 Enrollment Comparison

Student Enrollment FY2016 Actual

FY2017 Projection Variance %

Change Undergraduate Full-Time Headcount – Fall 2,926 2,918 (8) (.002)% Full-Time Headcount – Spring 2,612 2,629 17 .006% Part-Time Credit Hours – Total 9,528 9,658 149 .015% Graduate Part-Time Credits – Total 3,380 3,379 1 0%


The Doctor of Nursing Practice program, in its second year, is expected to add its second cohort of new students generating an additional $123,340 in new revenue. These enrollments are not reflected in the above table.

Tuition and Fees

Tuition and Fee revenue is expected to increase by 1.74% over FY2016 primarily driven by the 5% tuition increase for undergraduate and graduate tuition, and course/program fee increases and additions.

Tuition and Fee revenue also reflects the increase to in-state undergraduate enrollment as compared to out-of-state enrollment.

Federal and State contracts and grants reflect the expiration of several grants.

Other Operating Revenues

Revenue generated by the operation of Auxiliary Enterprises is projected to decline -0.56%. The projected decline in retail food sales and auxiliary fee revenue is contributing to the overall decline.

Expenditures

Faculty promotions effective July1, annual increment, and 2% salary increases from FY2016 are budgeted at $650,000.

PEIA premium increases are budgeted at $395,000. Depreciation is budgeted at $7.471 million. Over budget conditions in student support services, graduate, and academic unit adjunct budgets are

budgeted at $235,000. Bad debt expense is budgeted at $107,000. Expenses of $40,000 for new ESL program are budgeted. New Major Gifts Officer salary budgeted at $100,000, including benefits. Reinstatement of academic research and travel budgets at $20,000. New Science Lab Tech position at $28,000, including benefits, is budgeted and will be funded by an

increase in lab fees for CIS, Biology, and Chemistry classes. Reduced budgets in University Communications, PASS, software maintenance, insurance, and cell

phones at $280,000.

Non-Operating Revenues and Expenditures

State appropriations reflect a decrease of $235,952. Interest on capital asset related debt will decrease 3.4% as the bond premium payments continue to

reflect higher principal payments. Based on enrollment trends, non-operating federal revenue, PELL, is anticipated to decline by

$250,000. Contributions from the Foundation for student scholarships, included under Gifts, are expected to

increase by $90,000.

Other Post Employment Benefits (OPEB)

OPEB is projected to decrease $153,216 due to a recalculation which will reduce the number of policyholders.


The following resolutions are recommended for adoption by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the FY2017Annual Budget as presented in the agenda materials of June 2, 2016. RESOLVED FURTHER, that the Shepherd University Board of Governors authorizes the President, following consultation with the Executive Committee, to make amendments to the budget, as appropriate and consistent with the alternative financial scenarios provided in the agenda materials of June 2, 2016. BE IT FURTHER RESOLVED, that the Shepherd University Board of Governors authorizes the Executive Committee to act on behalf of the Board, on an emergency and interim basis, to approve and to take any actions necessary and in the best interests of the University, to address circumstances of appropriations reductions in excess of the 5% rescission model presented in the June 2, 2016 agenda materials or arising from fiscal and operational emergencies in the event that no FY2017 appropriations are provided for prior to July 1, 2016.


Shepherd University FY2016 and FY2017 Budget Comparison

(Dollars in Thousands) Based on FY17 2.5% Rescission

OPERATING REVENUES FY16 Adjusted

Budget FY17 Proposed

Budget Tuition and Fees 19,318$ 19,655$ 336$ 1.74% Federal Grants and Contracts 1,485$ 1,457$ (28)$ -1.90% State and Local Grants and Contracts 4,462$ 4,408$ (53)$ -1.20% Private Grants and Contracts 30$ 20$ (11)$ -34.87% Sales and Services of Educational Activities 15$ 15$ -$ 0.00% Auxiliary Enterprises 18,394$ 18,285$ (109)$ -0.60% Other Operating Revenues 613$ 617$ 4$ 0.70%TOTAL OPERATING REVENUES 44,318$ 44,457$ 139$ 0.31%

OPERATING EXPENSES Instruction 17,899$ 18,553$ 654$ 3.65% Academic Support 3,341$ 3,424$ 83$ 2.48% Student Services 3,840$ 3,860$ 19$ 0.50% Scholarships & Fellowships 3,448$ 3,079$ (369)$ -10.71% Operations and Maintenance 4,766$ 5,016$ 250$ 5.25% Institutional Support 5,969$ 6,384$ 414$ 6.94% Research 244$ 244$ -$ 0.00% Public Service 229$ 239$ 10$ 4.45% Auxiliary Expenses 13,137$ 13,140$ 3$ 0.02% Depreciation Expense 7,362$ 7,472$ 110$ 1.49% Transfers and Other (Additions) Subtractions 293$ 293$ -$ 0.00%TOTAL OPERATING EXPENSES 60,529$ 61,703$ 1,175$ 1.94%

OPERATING LOSS (16,211)$ (17,247)$ (1,036)$ 6.39%

-$ NONOPERATING REVENUES (EXPENSES) -$

State Appropriations 9,438$ 9,202$ (236)$ -2.50% Nonoperating federal revenue 5,650$ 5,400$ (250)$ -4.42% Investment Income 31$ 33$ 2$ 6.01% Interest on capital asset related debt (1,941)$ (1,876)$ 65$ -3.34% Loss on disposal of equipment -$ Gifts 1,152$ 1,240$ 88$ 7.67% Payments of behalf of Shepherd University -$ Fees assessed by the Commission for interest and reserves (38)$ (38)$ -$ NET NONOPERATING REVENUES 14,293$ 13,962$ (331)$ -2.32%

-$ Other Post Employment Benefits (OPEB) Expense (801)$ (648)$ 153$ -19.12%

-$ INCREASE (DECREASE) IN NET POSITION (2,719)$ (3,933)$ (1,213)$ 44.62%

Variance FY17 Budget to FY16

Adjusted Budget


FY2017 Operating Budget Scenarios and Cash Flow Projections(Dollars in Thousands)

2.50% 5%FY16 Senate Bill Governor's Rescission Rescission

Projection FY17 Budget FY17 Budget FY17 Budget FY17 Budget Tuition and Fees 17,916$ 19,655$ 19,655$ 19,655$ 19,655$ Federal Grants and Contracts 797 1,457 1,457 1,457 1,457 State and Local Grants and Contracts 4,534 4,408 4,408 4,408 4,408 Private Grants and Contracts 22 20 20 20 20 Sales and Services of Educational Activities 36 15 15 15 15 Auxiliary Enterprises 17,721 18,285 18,285 18,285 18,285 Other Operating Revenues 517 617 617 617 617 TOTAL OPERATING REVENUES 41,543 44,457 44,457 44,457 44,457

Core Operating Expenses Primary Mission Costs Instruction 16,142 18,553 18,553 18,553 18,553 Academic Support 3,344 3,424 3,424 3,424 3,424 Student Services 3,374 3,860 3,860 3,860 3,860 Scholarships and Fellowships 2,938 3,079 3,079 3,079 3,079 Subtotal Primary Mission Costs 25,798 28,916 28,916 28,916 28,916 Other Core Operating Expenses Operations and Maintenance 4,643 5,016 5,016 5,016 5,016 Institutional Support 6,138 6,384 6,384 6,384 6,384 Research 202 244 244 244 244 Public Service 235 239 239 239 239 Subtotal Other Core Operating Expenses 11,218 11,883 11,883 11,883 11,883 Total Core Operating Expenses 37,016 40,799 40,799 40,799 40,799

Auxiliary Expenses 12,985 13,140 13,140 13,140 13,140 Depreciation Expense 7,377 7,472 7,472 7,472 7,472 Transfers and Other (Additions) Subtractions 311 293 293 293 293

TOTAL OPERATING EXPENSES 57,689 61,704 61,704 61,704 61,704 State Appropriations 9,438 9,552 9,438 9,202 8,966 Nonoperating Federal Revenue 5,216 5,400 5,400 5,400 5,400 Investment Income 51 33 33 33 33 Interest on Capital Asset Related Debt (1,955) (1,876) (1,876) (1,876) (1,876)

Loss on Disposal of Equipment - - - - - Gifts 1,267 1,240 1,240 1,240 1,240 Fees Assessed by the Commission for Interest and Reserves (38) (38) (38) (38) (38) TOTAL NONOPERATING REVENUES AND EXPENSES 13,979 14,311 14,197 13,961 13,725

Income (Loss) Before Other Revenues, Expenses, Gains or Losses (2,167) (2,936) (3,050) (3,286) (3,522)

OTHER REVENUES, EXPENSES, GAINS OR LOSSES CTC Net Assets Transfer 1 - - - - Other Post Employment Benefits (OPEB) Expense (619) (648) (648) (648) (648)

Increase (Decrease) in Net Assets (2,785)$ (3,584)$ (3,698)$ (3,934)$ (4,170)$

Depreciation 7,377 7,472 7,472 7,472 7,472 gasb 68 - - - OPEB 619 648 648 648 648

Capital Expenditures (1,243) (970) (970) (970) (970) Department Capital Expenditures (868) (865) (865) (675) (443)

Navitas Buildout (700) (700) (700) (700) Vacancy Savings 250 250 250 250

Bond and Lease Principal Payments and Amortization (1,556) (1,625) (1,625) (1,625) (1,625) Changes in Balance Sheet Accounts 485 (535) (535) (535) (535)

Increase (Decrease) in Cash 2,029$ 91$ (23)$ (69)$ (73)$

Ending Cash 19,908$ 19,999$ 19,885$ 19,839$ 19,835$

Shepherd University Board of Governors June 2016 Agenda Page10-1


FY2017 CAPITAL INITIATIVES Mr. James Vigil, Vice President of Administration and Interim Vice President for Finance, will review the capital initiatives that are expected to be undertaken during FY2017. Mr. Vigil will then be available for any questions from members of the Board.

Projects BudgetStrategic/Master Plan Initiatives

Enhanced Wi-Fi Across Campus Including Guest Access 110,000Enhanced Wi-Fi in Residence Halls 150,000

Subtotal: Strategic/Master Plan Initiatives 260,000

Renovation and Campus EnhancementsHuman Resources Interior Renovations to Mitigate Poor Air Quality 35,000Stutzman Slonaker Room 313 Renovations - Big Data Lab 20,000IT - Virtual Desk Top Infrastructure Upgrade 75,000

Subtotal: Renovation and Campus Enhancements 130,000

General Maintenance and RepairWest Woods Residence Halls HVAC Replacement 150,000Shaw/Thacher Residence Halls Shower Room Tile Refinishing 50,000Dining Hall Kitchen Tile Refinishing 25,000Civil War Center Roof, Gutter, Masonry Repairs 30,000Popodicon Roof, Masonry, Flooring Repairs 100,000Human Resources Masonry Repairs 125,000Capital Contingency 100,000

Subtotal: General Maintenance and Repairs 580,000

TOTAL: Capital Initiatives 970,000

CAPITAL INITIATIVES FY2017 SHEPHERD UNIVERSITY


Agenda Item 11-1


FY2018 CAPITAL FUNDING PRIORITIES

West Virginia Higher Education Policy Commission (HEPC) Series 12 requires each higher education institution to file its capital funding priorities with the Commission each year. The purpose of the annual capital projects list is to identify to the Commission the capital projects which the University would wish to pursue during the next two years, if funding were available. The Commission may receive direct appropriations from the Legislature to fund capital priorities, or the Commission may receive authorization to issue additional capital bonds. In either event, the University’s list will be integrated by the Commission with lists from all other institutions and the Commission will establish its statewide priorities for funding projects. The following list of capital priorities reflects the projects, which would allow the University to begin to implement the objectives of the Facilities Master Plan and the University’s strategic objectives. The following resolution is recommended for adoption by the Board:

RESOLVED, That the Shepherd University Board of Governors approves the FY2018 Capital Funding Priorities as presented in the agenda book of June 2, 2016, and authorizes the President to submit the Capital Funding Priorities on its behalf to the West Virginia Higher Education Policy Commission.


Agenda Item 11-2

Capital Project

A. Life, Health Safety 1,105,000

1. Emergency Power Generators for Two Buildings 400,000

2. Ikenberry Hall Fire Alarm System Upgrade 30,000

3. Security Cameras 250,000

4. Butcher Center Elevator 175,000

5. Interior and Exterior Door Locks to Upgrade Antiquated Lock System 250,000

B. Deferred Maintenance 2,340,000

1. Roofing Replacements 750,000 Knutti Hall 150,000 McMurran Hall 250,000 Student Center 350,000

2. Exterior Building Envelop - Masonry Repairs 40,000 Knutti Hall 40,000

3. Pedestrian and Vehicle Circulation 250,000 Repaving Streets and Parking Lots 250,000

4. Equipment Screen for Frank Center Roof 200,000

5. Butcher Center 1,100,000 Replace Existing Rooftop Units and Install AC on Non-Equipped Original Units 1,100,000

C. Instructional Building Improvements 18,100,000

1. Frank Center Renovation and Addition 16,000,000 Renovation of Performance Space and Addition to the Frank Center to Expand Instructional Space 16,000,000

2. Snyder Annex Renovation 500,000 Renovation of Free-Standing Historic Building for Public History Programs 500,000

3. Weight Room Building at Soccer Complex 1,600,000 Replaces Butcher Weight Room Project 1,600,000

D. Other Facilities Construction and Improvements $50,693,600

1. Demolition of Sara Cree Hall $1,000,000

2. Parking Structure 10,000,000 500 Space Parking Structure 10,000,000

3. New Maintenance Facility 6,359,600 Facilities Building - 20,160 Square Feet 4,533,600 Motor Pool Facility - 2,569 Square Feet 512,000 Storage Bins - 2,400 Square Feet 264,000 Demolition of Existing Trailers and Restoration of Existing Site 525,000 Renovation of Existing Maintenance Building for Alternative Use 525,000

4. King Street Pedestrianization 2,450,000 Conversion of King Street to Pedestrian Walkway and Upgrading of Existing Water Lines 2,450,000

5. Campus Entrances and Border definitions 500,000 Construction of Stone Columns, Walls and Landscaping Features to Define University Borders 500,000

6. New Student Center / Dining Facility 30,184,000 New Student Center, Dining Operations, Conference Rooms, Bookstore and Administrative Offices - 109,000 Square Feet 30,184,000

7. Field Houses and Restrooms for Softball and Baseball 200,000

E. Technology Upgrades 375,000

1. Telephony Upgrade 375,000 Architecture Change to VoIP (Voice over Internet Protocol)

TOTAL 72,613,600

Shepherd UniversityFY2018 Capital Funding Priorities



COMPOSITE FINANCIAL INDEX Mr. James Vigil, Vice President of Administration and Interim Vice President for Finance, will present to the Board Shepherd’s Composite Financial Index and related data. Mr. Vigil will then be available for any questions from members of the Board.


Agenda Page 13-1


ELECTION OF OFFICERS FOR 2016-2017 As provided by the State Code and the Board of Governors’ Bylaws, elections are to be held each June for the positions of Chairperson, Vice Chairperson, and Secretary of the Board. Chairperson

In June of each year, the members shall elect a Chair from among the nine lay members. In the event of a vacancy in the office of chairperson, the vice chairperson shall succeed to the office of chairperson for the rest of that fiscal year, and shall remain eligible to serve as chairperson in the following four fiscal years. The chairperson shall perform such duties as may be prescribed by law or by the regulations and policies of the Board. No member may serve as chair for more than four consecutive years.

Vice Chairperson

In June of each year, the members shall elect a Vice Chair from among the nine lay members immediately following election of a Chair. In the event of a vacancy in the office of Vice Chairperson, the members shall elect a Vice Chair at the next meeting following the occurrence of the vacancy. No limitation shall apply as to the consecutive years of service as Vice Chair. The Vice Chair shall perform such duties as may be prescribed by the Board and shall assume the duties of the chairperson during the latter's absence.

Secretary of the Board

In June of each year, the members shall elect a Secretary from among the nine lay members immediately following election of a Chair and Vice Chair. In the event of a vacancy in the office of Secretary, the members shall elect a Secretary at the next meeting following the occurrence of the vacancy. No limitation shall apply as to the consecutive years of service as Secretary. The Secretary shall perform such duties as may be prescribed by the Board and shall preside at meetings in the absence of the Chair and the Vice Chair.

The Bylaws further provide that following the election of these officers, the Audit and Finance Committee membership is established.

The Audit and Finance Committee shall consist of three members, all of whom shall have some experience in matters of finance and/or accounting, and shall include at least one member who possesses accounting or financial management expertise; provided, however, that no Board Member may serve on this Committee at any time that said Member is receiving any compensation, directly or indirectly, for consulting or any service provided to the University. The members of the Committee, and its Chair, shall be elected annually by the Board at the Annual Meeting, following an initial nomination by the newly elected Chair.


Agenda Page 14-1


PROPOSED 2016-2017 MEETING DATES The following list of dates reflects recommended meeting dates for the 2016-2017 academic year based upon mandated and strategic decision-making processes during the course of the year. The Board must meet at least six times annually. This proposed schedule reflects a total of six meetings. The meetings of the full board will be preceded by committee meetings that will be generally scheduled for 3:00 p.m. The Chair will lead the discussion for setting a schedule of meetings for the coming year. July Propose no meeting. August Propose no meeting. September Thursday, September 29, 2016 at 4:15 p.m. October Propose no meeting. November Wednesday, November 16, 2016 at 4:15 p.m. December Propose no meeting.

January Thursday, January 26, 2017 at 4:15 p.m. February Propose no meeting. March Thursday, March 9, 2017 at 4:15 p.m. April Thursday, April 27, 2017 at 4:15 p.m. May Propose no meeting. June Thursday, June 22, 2017 at 4:15 p.m.

Documents

Board of Governors · Professional Nurses and the overall institutional site visit as part of the Higher Learning Commission’s Pathways accreditation process - - each visit was