to the Board of Trustees Thursday, June 13, 2019

President’s Report

President’s Report to the Board of Trustees of Northeastern Illinois University 1 June 13, 2019

Table of Contents

I. ACTION ITEMS

A. Tenure and Rank for the Provost and Vice President for Academic Affairs ............................ 2

B. Tenure and Rank for the Dean of the Libraries ...................................................................... 3

C. Expenditures of $100,000 or More: Detention Basin Expansion Project ................................. 4

D. Expenditures of $100,000 or More: QBS Master Agreement for Roof and Façade Repairs ... 5

E. Expenditures of $100,000 or More: Media Buyer Services ..................................................... 6

F. Preliminary FY2020 Operating Budget ................................................................................... 8

G. Expenditures of $100,000 or More: Concessionaire Contract Renewal: A’viands .................. 13

H. Vice President for Finance and Administration Search Update and Request to Engage A

Search Firm ........................................................................................................................... 14

II. INFORMATION ITEMS

A. Committee Dashboards ......................................................................................................... 15

B. Retention Presentation .......................................................................................................... 16

C. Learning Management System Desire2Learn (D2L) Contract Renewal ................................. 17

D. Third Quarter Budget to Actuals ............................................................................................. 18

E. Construction Update .............................................................................................................. 22

F. Purchases $50,000 to $99,999.99 ......................................................................................... 23

G. News and Events ................................................................................................................... 24

President’s Report to the Board of Trustees of Northeastern Illinois University 2 June 13, 2019 ACTION ITEM I. A. TENURE AND RANK RECOMMENDATIONS: PROVOST AND VICE PRESIDENT FOR ACADEMIC AFFAIRS Dennis Rome has been hired as Provost and Vice President for Academic Affairs and will begin his position July 1, 2019. A graduate of Lane Tech College Prep High School, Dr. Rome is a product of Chicago Public Schools. He earned his bachelor’s degree from Bradley University, his master’s degree from Howard University, and his Ph.D. from Washington State University. All of his degrees are in Sociology. Dr. Rome’s professional journey started in 1990 at Wilmington College in Wilmington, Ohio, where he taught in the Department of Sociology for three years. He moved on to Indiana University to teach in the Department of Afro-American Studies from 1993 through 2002 and then in the Department of Sociology though 2004. Dr. Rome became Professor and Chair of the Department of Criminal Justice at the University of Wisconsin – Parkside in 2004. He was named Associate Provost and Associate Vice Chancellor for Academic Affairs at Wisconsin – Parkside before moving on to Columbus State University in 2014 to serve as Dean and Professor. Dr. Rome has published three books and has another in progress. His most recent book, Black Demons: Mass Media’s Depiction of the African American Male Criminal Stereotype, was published in 2004 by Praeger Press. He also has published numerous book chapters and research articles. Dr. Rome has the endorsement of the Department of Sociology and the Acting Provost. RECOMMENDED ACTION I request that the Board approve the granting of tenure to the new Provost and Vice President for Academic Affairs, Dr. Dennis Rome, at the rank of Professor in the Department of Sociology.

President’s Report to the Board of Trustees of Northeastern Illinois University 3 June 13, 2019 ACTION ITEM I. B. TENURE AND RANK RECOMMENDATIONS: DEAN OF THE LIBRARIES Steven Harris has been hired as the Dean of Libraries and will begin his position August. 1, 2019. Mr. Harris comes to Northeastern after serving as an Assistant Dean at the University of Nevada, Reno since 2013. He has had a 30-plus-year career in university libraries throughout the country, first earning tenure at the University of Tennessee, Knoxville. In addition he has held several leadership roles in the American Library Association and its divisions, including the Association of College & Research Libraries (ACRL) and the Association for Library Collections and Technical Services (ALCTS). The new Dean of Libraries, Steven R. Harris, is recommended by the Acting Provost to be granted tenure and the rank of Associate Professor. RECOMMENDED ACTION I request that the Board grant tenure to Steven R. Harris, Dean of the Libraries, at the rank of Associate Professor in accordance with the recommendation and endorsement put forth by the Acting Provost.

President’s Report to the Board of Trustees of Northeastern Illinois University 4 June 13, 2019 ACTION ITEM I. C. EXPENDITURES OF $100,000 OR MORE: DETENTION BASIN EXPANSION PROJECT Project Background The request for the Detention Basin Expansion project and vendor was approved by the Trustees at their September 17, 2015 meeting. The state budget impasse caused this project to be put on hold in February 2016. Since this project’s suspension in early 2016, the costs originally approved have increased, and approval to continue with the work is requested. Project Scope The scope of work includes expansion of the detention basin to accommodate the added storm water detention required for additional buildings such as the proposed College of Education and future buildings. The bid has now been updated, reviewed, and approved by the architect of record and the Chief Procurement Officer. The 2015 base bid was for $608,428. RECOMMENDED ACTION I request that the Board approve the updated expenditures related to the stalled Detention Basin Expansion project as part of the University’s critical infrastructure improvement. Project Cost Base Bid: $846,364 Additional funds, if needed $ 84,636 TOTAL COST: $931,000 Source of Funds Utilities Infrastructure Reserve Funds Recommended Vendor Accel Construction Services Group, LLC 4753 N. Broadway St. Chicago, IL 60640

President’s Report to the Board of Trustees of Northeastern Illinois University 5 June 13, 2019 ACTION ITEM I. D. EXPENDITURES OF $100,000 OR MORE: QBS MASTER AGREEMENT FOR ROOF AND FAÇADE REPAIRS Project Background The University building roofs are past their life expectancy. Many wall façades are also in need of repairs. A Request for Qualifications was conducted to select Architectural/Engineering firms to address these needs. In the past, roofing contracts were awarded to contractors on a per-project basis. The Master Agreement for Architectural/Engineering services allows the University to utilize any of the three selected vendors on an as-needed basis without having to enter into a separate contract for each project. This new contracting process allows the University to function in a more efficient manner. Selection Overview The QBS solicitation was posted on the State of Illinois Public Higher Education Procurement Bulletin website in accordance with state procurement regulations. An evaluation committee was formed to review and evaluate vendor submissions. Three firms were selected based on their qualifications to provide Architectural/Engineering services consistent with the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act (30 ILCS 535/1). RECOMMENDED ACTION I request that the Board approve expenditures related to the Architectural/Engineering Vendors for future roof and exterior wall maintenance projects. This award is for an annual amount of $100,000 per vendor. The contracts are for three years. Master Agreement Amount $100,000 per year Source of Funds University Funds Recommended Vendors Inspec, Inc. 8618 W. Catalpa Chicago, IL 60656 GSG-Probe Consulting, Inc. 2942 W. Van Buren Street Chicago, IL 60612 Globetrotters Engineering Corporation 300 S. Wacker Drive Chicago, IL 60608

President’s Report to the Board of Trustees of Northeastern Illinois University 6 June 13, 2019 ACTION ITEM I. E. EXPENDITURES OF $100,000 OR MORE: MEDIA BUYER SERVICES Recognizing that the competitive landscape for higher education is becoming more sophisticated and that differentiation is critical, the University is seeking to enlist the professional services of a media buyer. Northeastern’s contract with the current media buyer expires on June 30, 2019. A media buyer’s primary functions are as follows:

to provide media buying services for multiple media campaigns

to consult and recommend marketing strategies

to capture data and metrics related to return on investment

to allow the University to gain additional advertising and volume discounts through bulk purchasing

Selection Overview Recently, the University issued an RFP for the acquisition of a media buyer. Significant effort was taken to ensure the representation of minority and women owned businesses. Five firms submitted proposals and were reviewed by a three-person Evaluation Committee. After a thorough review of the respondent’s experience and qualifications, the Committee determined that the company that will best serve the needs of the University is Carnegie Dartlet, LLC. To engage the services of the media buyer, the University must indicate an estimate of the funds that we will provide for the purchase of advertising. It is understood that the estimate is a range and not a commitment of a specific amount. The contract with the media buyer is for three years with an opportunity to renew for up to three more years. Funding would come from state funds, and the advertising spend would be set after a marketing budget has been determined at the start of each fiscal year. RECOMMENDED ACTION I request that the Board approve the selection of Carnegie Dartlet LLC, which will manage the purchasing of advertising for the University in an amount not to exceed $1 million per fiscal year. Master Agreement Amount Not to exceed $1,000,000 SOURCE OF FUNDS State Funds Recommended Vendor Carnegie Dartlet, LLC. 210 Littleton Road, Suite 100 Westford, MA 01886 Summary of Respondents Radio Link Media, LLC d/b/a RLM Media 55 E. Jackson Blvd., Suite 910 Chicago, Illinois 60604

President’s Report to the Board of Trustees of Northeastern Illinois University 7 June 13, 2019 ACTION ITEM I. E. EXPENDITURES OF $100,000 OR MORE: MEDIA BUYER SERVICES Central States Media 2006 Altorfer Drive Peoria, Illinois 61615 Colman Brohan & Davis, Inc. d/b/a CBD Marketing 54 W. Hubbard Street Chicago, Illinois 60654 Conroy Media, Ltd. 1211 West 22nd Street, Suite 426 Oakbrook, Illinois 60523

President’s Report to the Board of Trustees of Northeastern Illinois University 8 June 13, 2019 ACTION ITEM I. F. PRELIMINARY FY2020 OPERATING BUDGET Overview The Northeastern Illinois University Board of Trustees is asked to approve the University operating budget that represents preliminary estimated spending plans for the upcoming fiscal year beginning on July 1, 2019 and will be asked to approve the final Fiscal Year 2020 (FY2020) detailed budget at its September 2019 Board meeting. For some background, in August 2003 the Illinois Board of Higher Education (IBHE) adopted Recommended Actions to Expand and Enhance Public University Annual Operating Budget Review, Approval and Oversight. Actions included a requirement that each public university adopt a “preliminary/estimated spending plan” prior to July 1 that includes:

• funding sources reported by, at a minimum, State-appropriated funds, University income funds, and all other non-appropriated funds, and

• expenditures by object of expenditure (e.g., personal services, contractual services, equipment).

This report provides the information required by the IBHE for the FY2020 internal budget. The University’s unrestricted operating budget is comprised of two main sources of funds – state general funds appropriations (approximately 39 percent of operating revenues) and university income funds, mostly tuition (approximately 61 percent of operating revenues). At the time this report was prepared, due to the University’s late enrollment and the state appropriation process total funds available for FY2020 spending could not be finalized. As a result, the budget presented in this report is intended primarily to meet the IBHE’s reporting requirement. At the September 2019 Board meeting a detailed budget for FY2020 will be presented for approval. State appropriation In FY2019, the University received an appropriation of $33,873,200. The FY2019 appropriation level represents a 2 percent decrease from the FY2018 appropriation of $33,209,000. In February 2019, Governor Pritzker proposed an FY2020 state budget that reflected a 5 percent increase to higher education operations with funding for Northeastern equal to $35,566,900. In September 2018, the Board of Trustees adopted the University’s initial FY2020 budget requests and that request was forwarded to the IBHE for consideration. The IBHE presented and approved its budget recommendation for Fiscal Year 2020 in December 2018. For universities, the IBHE recommended an overall 10 percent funding increase from FY2019 levels. For Northeastern, with performance funding adjustments, the IBHE Board approved an FY2020 appropriation recommendation of $37,337,900. This represented an increase of $3,464,700 or 10.23 percent, from the FY2019 appropriation of $33,873,200. The recommendation for Northeastern was a greater percentage than the overall increase to public universities due to Northeastern’s gain in performance funding. In May 2019, the Finance, Building and Grounds Committee of the Board were briefed on the status of the FY2020 budget development. The University began budget planning with the Governor’s recommended funding of a 5 percent increase, then reduced to a 3 percent increase as the General Assembly worked through its process, and finalized control numbers against the conservative scenario reflecting level state appropriation.

President’s Report to the Board of Trustees of Northeastern Illinois University 9 June 13, 2019 ACTION ITEM I. F. PRELIMINARY FY2020 OPERATING BUDGET In the last week of May the General Assembly passed budget appropriation bills which reflect a 5 percent increase to the appropriation for higher education from FY2019 levels. Due to timing of this report, the preliminary budget presented is based on what was the conservative scenario reflecting level funding. Over the next few weeks, as final fall enrollments become known, the final budget will consider the additional state funding against tuition revenues and high priority spending needs. Income fund The unrestricted operating budget reflects the tuition and fee rates adopted by the Board in November 2018 for FY2020. Northeastern, like most of its peers, has experienced enrollment challenges for the past several years. These result from the current national and state economic climate, federal reductions in need-based student aid, and increased competition for a shrinking pool of high school graduates. At the time this Board report was prepared, total credit hour enrollment is projected to be 6.3 percent lower than current year-end estimates. With these enrollments and the approved tuition rates, tuition revenue for FY2020 is projected to be $51,934,800. With the College of Business and Management’s tuition differential and other sources, total income fund revenues are projected at $52,934,800. In total, this represents a decrease of $1,636,200, or 1.8 percent, from the FY2019 budget. Restricted operating funds In addition to the unrestricted operating budget, this preliminary plan includes forecasts for the restricted operating budget, which includes student fee programs, auxiliary services, indirect costs and grant sources. The restricted operating budget includes expenditures from revenue sources that are restricted either by an external requirement or by internal accounting policy. Preliminary student fee program budgets are based on the same projected 6.3 percent enrollment decline as the unrestricted operating budgets, and the fee rates as approved by the Board of Trustees in November 2018. Estimates for auxiliary and grant funds are based on FY2019 revenues, as determined to date. The total preliminary FY2020 budget is summarized in Table 1.

President’s Report to the Board of Trustees of Northeastern Illinois University 10 June 13, 2019 ACTION ITEM I. F. PRELIMINARY FY2020 OPERATING BUDGET As shown on Table 1, resources available for operating purposes in FY2020 are estimated at $148,352,200, a decrease of $2,733,400, or 1.8 percent, from the FY2019 budget.

Table 2, as required by the IBHE, provides estimated proposed expenditures by functional category (e.g., instruction, organized research) and object category (e.g., personal services, travel) by source of funds. Final categorical expenses will be provided in September.

Table 1

NORTHEASTERN ILLINOIS UNIVERSITY

Annual Change

Dollar Percent

Unrestricted Operating Budget

State General Funds Appropriations $ 33,873,200 $ 33,873,200 $ - - %

University Income Fund - Tuition 53,718,000 51,934,800 (1,783,200) (3.3)

University Income Fund - Tuition Differential 403,000 403,000 - -

University Income Fund - Other 450,000 597,000 147,000 32.7

Unrestricted Operating Budget $ 88,444,200 $ 86,808,000 $ (1,636,200) (1.8) %

Restricted Operating Budget

Student Fee Programs $ 9,628,700 $ 8,991,300 $ (637,400) (6.6)

Sales & Services 3,238,500 3,241,700 3,200 0.1

Auxiliary Services 4,270,200 3,979,700 (290,500) (6.8)

Indirect Costs Recovery * 2,604,000 2,431,500 (172,500) (6.6)

Grants & Contracts-Education 600,000 600,000 - -

State and Local Grants & Contracts 8,800,000 8,800,000 - -

Federal Grants & Contracts 33,000,000 33,000,000 - -

Private Grants & Contracts 500,000 500,000 - -

Restricted Operating Budget $ 62,641,400 $ 61,544,200 $ (1,097,200) (1.8) %

Total Operating Budget $ 151,085,600 $ 148,352,200 $ (2,733,400) (1.8) %

* Includes prior year carryovers of $524,000 in FY2019 and $279,500 in FY2020.

Fiscal Year 2020 Operating Budget

(with comparable data provided for Fiscal Year 2019)

FY2019

Budget

FY2020

Preliminary

Budget

President’s Report to the Board of Trustees of Northeastern Illinois University 11 June 13, 2019 ACTION ITEM I. F. PRELIMINARY FY2020 OPERATING BUDGET

Table 2

NORTHEASTERN ILLINOIS UNIVERSITY

Fiscal Year 2020 Operating Budget

General

Operating Fund Restricted

Functional Categories (State and Tuition) Funds Total

Instruction 48,958,000$ 7,805,200$ 56,763,200$

Organized Research 180,000 2,201,000 2,381,000

Public Service 944,000 15,544,000 16,488,000

Academic Support 6,746,000 2,372,000 9,118,000

Student Services 4,085,000 24,329,000 28,414,000

Institutional Support 11,426,400 1,581,000 13,007,400

Operations and Maintenance 12,120,000 3,002,000 15,122,000

Independent Operations - 4,710,000 4,710,000

Benefits/Social Security/Medicare 1,276,000 - 1,276,000

Health Insurance Reserve Fund 1,072,600 - 1,072,600

Total 86,808,000$ 61,544,200$ 148,352,200$

General

Operating Fund Restricted

Line Item Categories (State and Tuition) Funds Total

Personal Services 67,223,800$ 12,979,100$ 80,202,900$

Contractual Services 11,085,000 15,876,000 26,961,000

Travel 194,000 269,000 463,000

Commodities 830,000 1,408,000 2,238,000

Equipment 991,000 824,000 1,815,000

Telecommunications 600,000 95,000 695,000

Awards/Grants/Tuition Waivers 1,322,000 21,709,100 23,031,100

Permanent Improvements 49,600 34,000 83,600

Benefits/Social Security/Medicare 1,276,000 3,396,000 4,672,000

Health Insurance Reserve Fund 1,072,600 - 1,072,600

Indirect Costs - 2,604,000 2,604,000

Other/Transfer Out (Debt Service) 2,164,000 2,350,000 4,514,000

Total 86,808,000$ 61,544,200$ 148,352,200$

by Function and Line Item

President’s Report to the Board of Trustees of Northeastern Illinois University 12 June 13, 2019 ACTION ITEM I. F. PRELIMINARY FY2020 OPERATING BUDGET Base Requirements Over 80 percent of the University’s unrestricted general operating budget supports personnel and benefit costs. And over half of the University’s workforce is covered by collective bargaining agreements with 5 bargaining units. Operating budget increases of 2 to 3 percent for salary growth is required to reflect negotiated contracts and a comparable increase for non-negotiated employees. These salary increases plus other personnel changes in distribution total $1.4 million. In addition to salary growth, the FY2020 preliminary budget also includes an expected contribution due to its occupancy guarantee with the NEST equal to the current year, or $2.0 million. All other FY2020 needs are being met through reallocations as the President and Vice Presidents work through budget planning to meet respective control budgets. The University begins its planning for every upcoming annual budget two years prior through the University Planning and Budget Council (UPBC), a council with membership from all constituency groups. Each Vice President presents prior year accomplishments to the UPBC and requests funding to support future year plans. From there, the UPBC considers requests and, through its process involving each University constituency, recommends projects for funding. For FY2020, the UPBC recommended 13 projects with a total cost of $1.8 million. With consideration given to the University-wide prioritization of these projects, many are accomplished by reallocating existing funds. Other projects, though prioritized by the UPBC process, are not possible due to limited resources. After further consideration and evaluation by the President and Vice Presidents, given the challenging fiscal environment and need to consider upcoming initiatives, no funding for UPBC recommended projects is included in this preliminary FY2020 budget. The President and Vice Presidents are finalizing spending plans to balance against the projected resources. This preliminary unrestricted operating budget of $86,808,000 represents a decrease of $1,636,200 or 1.8 percent below the current year. RECOMMENDED ACTION I request that the Board of Trustees approve the FY2020 preliminary budget as presented in Tables 1 and 2, and as outlined above.

President’s Report to the Board of Trustees of Northeastern Illinois University 13 June 13, 2019

ACTION ITEM I. G. EXPENDITURES OF $100,000 OR MORE: CONCESSIONAIRE CONTRACT RENEWAL: A’VIANDS FOOD AND SERVICES MANAGEMENT

BACKGROUND The University contracts with an external food services vendor to operate dining services and a catering program for the main campus.

In July 2013, a Request for Proposals (RFP) was advertised on the Illinois Public Higher Education Procurement Bulletin. The RFP requested proposals from qualified firms to provide creative food service solutions covering all facets of concept, design, layout, product specification and management of the food service operation on the main campus.

A’viands Food and Services Management was awarded the contract in 2013 as a result of the full RFP process.

DESCRIPTION The original contract with A’viands Food and Services Management began on December 1, 2013 and expired on June 30, 2016. The contract was amended effective July 1, 2016, extending it through June 30, 2019 with an option to renew for a four year term.

A’viands currently operates the Golden Eagle’s Nest Cafeteria located on the lower level of the Student Union. The operation offers a wide variety of daily food options including a Deli, Salad Bar, Pizza, Grill and a World Flavors entrée stations. There is a strong focus on healthy meal options as well as addressing varied dietary needs. A’viands also provides exclusive catering for all events held on the main campus.

Customer service satisfaction surveys have been administered each year of the current contract. Students, Faculty and Staff members have all participated in the surveys with a favorable rating of the dining and catering options provided by A’viands. The Food Service Advisory Committee also met in the spring to discuss the current operation and the members are confident in A’viands’ ability to continue to meet the needs of the University community.

After careful discussion and consideration, the University and A’viands have agreed to a four year renewal of the current contract. A’viands will charge an annual management fee of $49,440, with a shared profit and/or loss pending actual performance, to be capped at an annual not-to-exceed amount of $115,000. The term of the contract is July 1, 2019 through June 30, 2023.

RECOMMENDED ACTION I request that the Board approve the renewal of the contract between the University and A’viands Food and Services Management for the next four years.

Source of Funds Student Union Fee

Recommended Vendor A’viands Food and Services Management

President’s Report to the Board of Trustees of Northeastern Illinois University 14 June 13, 2019 ACTION ITEM I. H. VICE PRESIDENT FOR FINANCE AND ADMINISTRATION SEARCH UPDATE AND REQUEST TO ENGAGE A SEARCH FIRM Last fall, the University President assembled a search-and-screen committee to assist with a search for a new Vice President for Finance and Administration (VPFA), which is a position that had been vacant since June 2018 upon the retirement of Vice President, Michael Pierick. Since then, the responsibilities of the position had been divided among the President, the Vice Presidents, and the Interim Chief Financial Officer. The search-and-screen committee, chaired by Acting Provost Wamucii Njogu, spent most of the spring semester going through a process to help identify a new VPFA. A number of phone and in-person interviews took place. Finalists were invited to visit the University for group interviews, as well as to make an open campus presentation. At the end of the process, despite the tireless and dedicated efforts of the committee, the University President did not find a suitable finalist for the position. RECOMMENDED ACTION I request that the Board approve the engagement of an external search firm to assist in employing a Vice President for Finance and Administration. The President’s Report to the Board at its September 2019 meeting will include an information item regarding the status of the search.

President’s Report to the Board of Trustees of Northeastern Illinois University 15 June 13, 2019

INFORMATION ITEM II. A. ACADEMIC/STUDENT AFFAIRS AND ENROLLMENT MANAGEMENT DASHBOARDS

The Chair of the Committee will announce which University metric dashboards it will review at its future meetings.

President’s Report to the Board of Trustees of Northeastern Illinois University 16 June 13, 2019 INFORMATION ITEM II. B. STUDENT RETENTION PRESENTATION A presentation about student retention will be made by Dr. Frank Gaytan.

President’s Report to the Board of Trustees of Northeastern Illinois University 17 June 13, 2019 INFORMATION ITEM II. C. LEARNING MANAGEMENT SYSTEM DESIRE2LEARN (D2L) CONTRACT In 2012, the University entered into a five year contract with Desire2Learn (D2L) to provide the Learning Management System (LMS) and related applications as a result of a competitive Request for Proposal (RFP) process. That contract included five additional one-year renewal options. During the course of this contract, D2L became an Illinois Public Higher Education Cooperative (IPHEC) vendor. The IPHEC award will provide the University with better pricing. Therefore, the University opted not to exercise the remaining renewal options under the current contract. The University is entering into a new, three-year contract with D2L as an IPHEC vendor. With this new agreement, the University will have the same D2L tools, resources, service, and training resources as in the previous contract. In addition, the University will acquire new tools that include advanced reporting, predictive analytics, and adaptive learning tools as well as upgraded versions of the virtual classroom and video assignment tools. A fully integrated LMS is critical to supporting the University’s teaching and learning mission and for promoting student success across face-to-face, hybrid, and online courses. The LMS supports the management of courses and provides access to course content for students and faculty inside and outside of the classroom. The LMS is essential for delivering course materials such as presentations, readings, assignments, grades, etc. to students. The LMS provides communication tools such as discussions, chat, and real-time video. With the new contract, the LMS also provides advanced tools and analytics to further support student success. The pricing from the IPHEC agreement for the first year of the new contract provides the University with new and upgraded D2L tools at roughly the price that a renewal of the previous contract with fewer tools would have cost. The price for year one is $193,182.06 and includes a one-time implementation fee of $12,000 for these new tools. The price reflects the complete cost of the licensing, implementation, support, and maintenance of the fully integrated LMS for one year. Desire2Learn Contract: Year One Cost $193,182.06 Source of Funds CTL Online Course Fee Vendor D2L, Ltd. 500 York Road Towson, MD 21204

President’s Report to the Board of Trustees of Northeastern Illinois University 18 June 13, 2019 INFORMATION ITEM II. D. THIRD QUARTER BUDGET TO ACTUAL REPORT The Northeastern Illinois University Board of Trustees at its June meeting approved the University preliminary operating budget, which represented preliminary spending plans for fiscal year 2019 (FY2019). The Board of Trustees approved the final FY2019 operating budget in September. The operating budget for FY2019 totals $151,085,600. Of that total, $88,444,200 is the University’s unrestricted general operating budget supported by State appropriation and student tuition. In addition, the University’s restricted funds budget amount of $62,641,400 is supported by student fee programs, auxiliary services, grants and contracts. At the Board’s request, quarterly reports are provided for the unrestricted operating budget, which supports most University departments and ongoing operations. This report provides an update on third quarter spending in the unrestricted budget and is summarized in Table 1 at the end of this report. Revenues The FY2019 budget includes State support of $33,873,200 for the University’s unrestricted general operating budget, or 38 percent of that budget. University Income Funds are comprised primarily of tuition revenues. The FY2019 budget includes estimated income funds of $54,571,000, or 62 percent of the general operating unrestricted budget. Through the third quarter, the University has vouchered a total of $33.6 million against the State’s Education Assistance Fund (EAF). Of this amount, through the third quarter, $23.6 million was received. Through the third quarter, 98.8 percent of estimated tuition and income fund revenue was recorded, after adjusting for anticipated waivers and bad debt. These amounts represent the second half of summer 2018 and fall 2018 and spring 2019 enrollments. Because the summer term bridges two fiscal years, accruals are made to apportion the tuition revenues and operating expenses between those fiscal years. Enrollment projections and the resultant revenue projections for the FY2019 budget are based upon historical enrollment trends, the analysis of Enrollment Management Services, and available current registration data. This altogether resulted in total annual credit hour enrollment projected to decline by 9 percent from FY2018 levels. Fall 2018 and spring 2019 credit hour enrollments fell slightly short of the budget targets, with final census date hours below the related prior year term by 10 percent. It is important to note that for both the State appropriation and tuition income, revenues are recorded and reflected in this report as they are billed. Final revenue numbers will be available after the University makes all accounting adjustments during the year-end reconciliation period following June 30, 2019. These adjustments are required to account for activity such as class drop refunds, statutory waivers, bad debt allowances, and fees associated with outstanding account balances.

President’s Report to the Board of Trustees of Northeastern Illinois University 19 June 13, 2019 INFORMATION ITEM II. D. THIRD QUARTER BUDGET TO ACTUAL REPORT Expenses Through the third quarter, the University spent 70.9 percent of the total $88,444,200 general operating unrestricted preliminary budget. In October the University made a $676,000 contribution payment per its agreement with American Campus Community based on fall occupancy, and in March a $1,253,873 payment based on spring occupancy. To offset this unanticipated expense, the President and Vice Presidents identified $1.3 million by delaying hiring and reducing non-essential spending. The following table provides an outline the actual University revenues and expenses compared to budget through the third quarter of FY2019.

President’s Report to the Board of Trustees of Northeastern Illinois University 20 June 13, 2019 INFORMATION ITEM II. D. THIRD QUARTER BUDGET TO ACTUAL REPORT

Budget

Current

Budget Actual

% of Current

Budget

Revenue

State Appropriations 33,873,200$ 33,873,200$ 33,569,199$ 99.1%

Net Tuition Revenue 53,718,000 53,718,000 52,328,139 97.4

Net Differential Tuition Revenue 403,000 403,000 350,232 86.9

All other sources 450,000 450,000 1,158,185 257.4

Total Revenue 88,444,200$ 88,444,200$ 87,405,755$ 98.8%

Expenditures

Personal Services 71,258,077$ 70,576,207$ 50,752,267$ 71.9%

Contractual Services 10,774,771 10,774,751 8,554,109 79.4

Equipment 1,006,490 459,850 53,937 11.7

Commodities 884,199 793,598 308,535 38.9

Telecommunications 614,441 631,726 287,255 45.5

Travel 208,207 219,738 81,813 37.2

Permanent Improvements 200,000 162,020 2,500 1.5

Operation of Auto Equip 19,015 47,240 30,136 63.8

Tuition Scholarships 1,347,000 1,362,000 1,063,509 78.1

Debt Service 2,132,000 2,132,000 1,598,145 75.0

Identified Savings Held Centrally - 1,285,070 - -

Total Expenditures 88,444,200$ 88,444,200$ 62,732,208$ 70.9%

Notes:

1. Original Budget column reflects the FY019 budget approved by the Board of Trustees in September, 2018.

2. Year-to-date expense activity does not include encumbrances.

3. The Current Budget reflects budget transfers processed between organizations and accounts.

4. State Appropriations and Tuition Revenues reflect amounts the University has billed.

General Operating Budget

Table 1

NORTHEASTERN ILLINOIS UNIVERSITY

FISCAL YEAR 2019 BUDGET TO ACTUAL COMPARISONS

FOR THE PERIOD ENDING March 31, 2019

UNAUDITED FIGURES

President’s Report to the Board of Trustees of Northeastern Illinois University 21 June 13, 2019 INFORMATION ITEM II. D. THIRD QUARTER BUDGET TO ACTUAL REPORT

Budget

Current

Budget Actual

% of Current

Budget

Revenue

University Income Fund (Net Tuition) 56,129,900$ 56,129,900$ 55,352,927$ 98.6%

State Appropriations, Fiscal Year 2017 - - 17,336,800 -

State Appropriations, Fiscal Year 2018 33,208,900 33,208,900 33,023,072 99.4

All other sources 300,000 300,000 706,862 235.6

Total Revenue 89,638,800$ 89,638,800$ 106,419,662$ 118.7%

Expenditures

Personal Services 74,301,210$ 70,315,310$ 52,318,972$ 74.4%

Contractual Services 8,989,420 9,962,885 5,280,271 53.0

Equipment 1,010,790 1,010,633 354,673 35.1

Commodities 866,608 806,782 281,020 34.8

Telecommunications 622,388 641,343 294,402 45.9

Travel 229,369 243,683 70,743 29.0

Permanent Improvements 200,000 259,494 31,342 12.1

Operation of Auto Equip 19,015 37,906 24,759 65.3

Tuition Scholarships 1,299,000 1,312,000 904,461 68.9

Debt Service 2,101,000 2,101,000 1,221,119 58.1

Personnel savings from position eliminations - 2,947,764 - -

Total Expenditures 89,638,800$ 89,638,800$ 60,781,762$ 67.8%

Notes:

1. Original Budget column reflects the FY018 budget approved by the Board of Trustees in September, 2017.

2. FY2017 revenue of $17,336,800 was not budgeted for FY2018, but per the Illinois Comptroller, must be

posted as revenues in FY2018 because it was not received until after FY2017.

3. The FY2018 State appropriations represent the revenue amounts vouchered to the State through the third quarter.

Of this amount, $23,404,521 has been received through the third quarter.

4. Year-to-date expense activity does not include encumbrances.

5. The Current Budget reflects budget transfers processed between organizations and accounts.

General Operating Budget

Table 1

NORTHEASTERN ILLINOIS UNIVERSITY

FISCAL YEAR 2018 BUDGET TO ACTUAL COMPARISONS

FOR THE PERIOD ENDING March 31, 2018

UNAUDITED FIGURES

President’s Report to the Board of Trustees of Northeastern Illinois University 22 June 13, 2019 INFORMATION ITEM II. E. CONSTRUCTION UPDATE Electric Cable Replacement Project Phase 1 - $1.89M The Capital Development Board (CDB) released this project which replaces aluminum cable and outdated tap boxes throughout the campus. The CDB contracted Architectural and Engineering services with Hennenman Engineering Inc. The project is in the initial program analysis phase. Campus Roof Replacements $4.8M The CDB released funds for this project which renews the building envelope and roof integrity, and protects interior spaces for the various University buildings. The CDB has contracted with GSG Probe to supply Architectural and Engineering services. The project is in the initial program analysis phase. As of this writing, the following project is on hold pending release of State funding for the Education Building by the Capital Development Board: • Completion of Education Building construction documents, bid process and then construction.

President’s Report to the Board of Trustees of Northeastern Illinois University 23 June 13, 2019 INFORMATION ITEM II. F. PURCHASES OF AT LEAST $50,000 BUT LESS THAN $100,000 Board of Trustees’ Regulations require that the President report to the Board purchases of at least $50,000 but less than $100,000 other than those exempt from Board approval (e.g. utilities). The following lists those purchases since the last Board meeting.

VENDOR

DESCRIPTION

PURCHASE

ORDER AMOUNT

Susan Rankin

Campus Climate Study

$79,190.00

Stuckey Construction

Company

Building H Floor Slab Repairs

$52,192.94

F.E. Moran Mechanical

Services

Building Automation Software Upgrade for

BBH

$53,600.00

Weber Furniture

Service

CCICS Lower Level Conference Room

Millwork Bench Seating

$54,549.44

President’s Report to the Board of Trustees of Northeastern Illinois University 24 June 13, 2019 INFORMATION ITEM II. G. NEWS AND EVENTS April 19 - June 13, 2019 Pedroso Center Extended Hours - April 22 - April 26 The week prior to midterm exams, Pedroso Center extended its schedule until 7pm to offer an additional study space for NEIU students. Tutors from the Learning Support Center, games, prices, and food were offered. President’s Toast to the Graduates and Masters Hooding Ceremony - April 22 The NEIU Alumni Association participated in several pre-graduation celebrations in April to welcome new graduates into the NEIU Alumni Association. These events, Academic Honors (April 18), the President’s Toast to the Graduates and the Graduate Hooding Ceremony (April 22) have become new traditions that take place each semester prior to graduation. Open Gym Queer Volleyball Hour - April 23 In collaboration with Campus Recreation, Pedroso offered a brave space for LGBTQIA+ identified students to unwind and play this fun sport in community. #Proud2bNEIU Day – April 24 The Development Office produced the University’s second social media event, #Proud2bNEIU Day, following the trend of many universities to build alumni pride and increase giving on a specific day. This year’s goal was to increase participation by encouraging first-time gifts and sharing messages on social media platforms. Staff tabled in Village Square, with an opportunity for faculty, staff, alumni and visitors to share why they are #Proud2bNEIU. Resulting signs and images were shared across social media platforms and on the campus screens. Meeting with Governor Pritzker and Cabinet Members – April 25 President Gibson and public university presidents meet with Governor and members of his cabinet to discuss funding for public higher education, meeting took place at the Governor’s Office in Chicago. Legacy Celebration - April 25 As every year, the newly named “Legacy Celebration” was a multicultural celebration for all graduating students of color, first-generation students, LGBTQIA+ students, and student-leaders involved in Pedroso. Families and mentors were also invited to celebrate with their graduates. Celebration of Excellence – April 26 Institutional Advancement continued its co-sponsorship of Northeastern’s event to recognize upcoming graduates in STEM, which was expanded this year to recognize not only MARC (Maximizing Access to Research Careers) Scholars but also graduating McNair Scholars and Honors Program Scholars. The celebration was held at El Centro. NEIU and ASPIRA Memorandum of Understanding (MOU) Signing Ceremony – April 29 President Gibson and members of the University community participated in a signing ceremony of a new MOU with ASPIRA of Illinois. The new MOU promotes educational opportunities for students, professionals and alumni of both institutions. Ceremony was held at NEIU. Stress-Free Zone during Finals Week - April 29 through May 3 Student Health Services and Counseling Services hosted the Stress-Free Zone during Finals Week at all 3 campus sites. Approximately 400 students enjoyed chair massages, yoga classes, movies, games and snacks.

President’s Report to the Board of Trustees of Northeastern Illinois University 25 June 13, 2019 INFORMATION ITEM II. G. NEWS AND EVENTS Student Philanthropy Initiative The Student Philanthropy Initiative is an initiative to engage current students in philanthropic activities in order to develop a culture of giving among future alumni. Managed by Assistant Director of Alumni Relations, Ashley Agron, and Development Officer, Cecil Hynds-Riddle, the program had successful events in the spring 2019 semester including Penny Wars with Greek organizations, the Piggy Bank Savings Challenge during March Philanthropy Month, #Proud2bNEIU Day, and Diploma Stuffing. Class of 2019 Class Gift Campaign The Class Gift Scholarship was awarded to three students in spring 2019 and one student in fall 2019. The Class gift scholarship recipients along with Student Philanthropy Committee members have raised over $1,900 for the Class Gift in the spring semester. Annual May Appeal – May 2019 The Office of Development sent out the May appeal in late May 2019. The goal is predominantly acquisition of new donors, with direct mail sent to 5,000 contacts, of which 4,000 were segmented by decade and graduation year and 1,000 to lapsed donors. May Day - May 1 In partnership with the Justice Studies department, NEIU hosted students, faculty, and staff who came together to memorialize the undocumented immigrant struggles in the US with a march and rally. Public Higher Education Press Conference in Springfield – May 1 President Gibson and Suleyma Perez travel Springfield to participate in press conference held by the leadership of the House Higher Education Appropriations Committee urging the General Assembly to support funding for public higher education. Golden Alumni Induction Ceremony - Monday, May 6 During the May Commencement Ceremony, the University and NEIU Alumni Association recognized Golden Graduates of the Classes of 1968 and 1969 who celebrated the 50th anniversary of their graduation. Sixteen Golden Alumni participated in the ceremony and received medals from President Gibson. May 2019 Commencement Ceremony - May 6 The University held the May 2019 Commencement ceremony on Monday, May 6 at the Credit Union 1 Arena (formerly UIC Pavilion). Approximately 800-900 of graduates participated in the ceremony and were accompanied by their guests. Maria Woltjen, Executive Director of The Young Center for Immigrant Children’s Rights, provided the commencement address. Chicago’s Mayor and City Council Inauguration Events – May 20 President Gibson and Suleyma Perez attended the City of Chicago’s Mayor and City Council inauguration ceremony and events including Alderman Samantha Nugent’s celebration with residents’ of the 39th Ward. NEIU Faculty Emeriti Luncheon - May 30 The Office of Alumni Relations hosted a luncheon for faculty emeriti at Maggiano’s Old Orchard to meet President Gibson and to reconnect with each other and university representatives. More than 40 people participated, including 22 faculty emeriti. During the program, President Gibson and the deans of the College of Arts and Sciences, College of Business and Management and the Goodwin College of Education provided updates and news items from the University.

President’s Report to the Board of Trustees of Northeastern Illinois University 26 June 13, 2019 INFORMATION ITEM II. G. NEWS AND EVENTS NEIU Alumni Association Members Appeal - June 2019 In June 2019, the NEIU Alumni Association sent a direct mail appeal to 4,500 alumni to promote and encourage participation in the NEIUAA Membership Program. The membership program includes five membership levels that provide benefits and resources to alumni and friends of the University. One third of the price of every membership is directed to the NEIUAA Internship Scholarship. NEIU Alumni and Family Day at Six Flags - June 1 The Alumni Association hosted its annual NEIU Alumni and Family Day at Six Flags in Gurnee, Illinois. More than 200 alumni, students, faculty, staff, family and friends attended. Tickets included a day pass, a summer thrill pass and lunch. Proceeds from ticket sales benefited the NEIU Alumni Association. Illinois Board of Higher Education (IBHE) Meetings – June 4 President Gibson and Suleyma Perez attended the IBHE meetings held at Northern Illinois University in DeKalb, Illinois. Meetings included a morning session with the presidents of the public universities and afternoon open board meeting of IBHE. ASPIRA Graduation Remarks – June 7 President Gibson was invited to provide welcome remarks at ASPIRA’s 2019 Graduation Ceremony held at NEIU. Health & Wellness Information Sessions - June 7 & 14 Student Health Services provided information on health services, immunizations, and self-care to students at First-Year Orientations. 2019 Retiree Reception – June 10 The University’s 2019 Retiree Reception was held in Alumni Hall on June 10. During the program, the University recognized 43 faculty and staff who are retiring in fiscal year 2019. Past retirees and current faculty and staff were also invited to attend and celebrate the new retirees, as well as to reconnect with past retirees. The NEIU Foundation and State University Annuitants Association (SUAA) hosted informational tables about post-retirement benefits. Student Counseling Services (SCS) completed a very active academic year. In addition to serving students at the Main Campus location, they expanded services to El Centro and the Carruthers Center, and continued to see an increase in students seeking services over last year. SCS offered a number of skills-based outreach programs to serve students who don't want to come for one-on-one counseling, including workshops on Test Anxiety and Public Speaking Anxiety. Continued to collaborate with faculty to address topics such as student retention (URIT), and suicide prevention, and in collaboration with Student Health Services completed a successful Stress Free Zone, which also drew an increase of students during Finals Week. Grants from Private Foundations NoVo Foundation: $25,000* The Office of Development partnered with Associate Professor & Community Health Program Coordinator Jennifer Banas and Waukegan School District 60 to secure a $25,000 grant from the NoVo Foundation. The grant, titled “Bibliotherapy: A ‘novel’ approach to Socio-Emotional Learning” is a new approach to building social and emotional competency among socioeconomically disadvantaged youth. A young adult novel curriculum will be implemented in

President’s Report to the Board of Trustees of Northeastern Illinois University 27 June 13, 2019 INFORMATION ITEM II. G. NEWS AND EVENTS required 10th grade high school health education classes that aims to promote social justice, develop health and English language arts literacy, foster a love of reading, and to be bibliotherapeutic in nature. Waukegan School District 60 was the lead applicant, and the NEIU Foundation will receive a $15,000 subaward from the project. Healthcare Foundation of Northern Lake County: $35,000 (Third Year Renewal) For the third consecutive year, the Healthcare Foundation of Northern Lake County has granted Associate Professor Jennifer Banas funding for her collaborative project with Waukegan School District 60, Community-Based Approach to Improving Access to Healthcare via a Targeted Health Literacy Curriculum. The project improves the long-term health outcomes of youth through a curriculum that develops health literacy skills and promotes self-advocacy in gaining access to health care. The project also creates a pipeline for linguistically and culturally diverse health professionals who will serve Lake County’s racially/ethnically diverse population by promoting health careers. Woods Fund of Chicago: $10,000 The Prison + Neighborhood Arts Project (PNAP), led by Professors Erica Meiners and Tim Barnett, as received a grant from the Woods Fund of Chicago. The $10,000 grant will facilitate providing educational programming in the humanities for male inmates at the Stateville Correctional Center. A select cohort will receive resources to earn their degrees through NEIU’s University Without Walls program. PNAP also fosters dialogue on the need for educational resources in the criminal justice system.