Finance and Audit Committee Meeting Minutes

Finance and Audit Committee Meeting Minutes
Minutes
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
BOARD OF TRUSTEES
MIAMI UNIVERSITY
Minutes of the Finance and Audit Committee Meeting
December 3, 2015
104 Roudebush Hall
The Finance and Audit Committee of the Miami University Board of Trustees met
on December 3, 2015 in Roudebush Hall, Room 104, on the Oxford campus. The
meeting was called to order by Committee Chair Mark Ridenour at 8:00 a.m., with a
majority of the members present, constituting a quorum. Attending were Chair Ridenour,
and Committee members John Altman, Jagdish Bhati, David Budig, C. Michael Gooden,
Sharon Mitchell and Stephen Wilson, along with National Trustees Terry Hershey and
Diane Perlmutter, and Student Trustee Ciara Lawson. Committee member Robert Coletti
was absent.
In addition to the Trustees, David Creamer, Senior Vice President for Finance and
Business Services, and Treasurer; Phyllis Callahan, Provost and Executive Vice
President; Jayne Brownell, Vice President for Student Affairs; Tom Herbert, Vice
President for Advancement; Michael Kabbaz, Vice President for Enrollment
Management and Student Success; and Peter Natale, Vice President for Information
Technology, were in attendance. Also present were; Robin Parker, General Counsel;
Deedie Dowdle, Associate Vice President for Communications and Marketing; David
Ellis, Associate Vice President for Budgeting and Analysis; Bruce Guiot, Chief
Investment Officer; Kim Kinsel, Associate Vice President for Auxiliaries; Cody Powell,
Associate Vice President for Facilities, Planning and Operations; Sarah Persinger,
Controller; Dawn Fahner, interim Associate Vice President of Human Resources; Joe
Bazeley, Assistant Vice President for IT, and Information Security Officer; Troy Travis,
Assistant Vice President for IT, Enterprise Operations; Dr. Amit Shukla, Chair, Fiscal
Priorities and Budget Planning Committee; John Seibert, Director, Planning, Architecture
and Engineering; Barbara Jena, Director of Internal Audit and Consulting; Lindsay
Carpenter, Manager, Academic Affairs Budgets; Claire Wagner, Director of University
News and Communications; and Ted Pickerill, Secretary to the Board of Trustees.
Executive Session
On a motion duly made, seconded, and unanimously approved by the Committee,
the Finance and Audit Committee adjourned to Executive Session in accordance with the
Ohio Open Meetings Act, Revised Code Section 121.22 to consult with counsel and
discuss personnel matters. Following adjournment of the Executive Session, the
Committee convened into the Public Business Session.
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Public Business Session
Chair Mark Ridenour opened the public session and welcomed everyone to the
meeting.
Approval of the Minutes
On a motion duly made by Trustee Mitchell, seconded by Trustee Wilson, and
unanimously approved by the Committee, the Finance and Audit Committee minutes
from the previous meeting were approved.
Financial Statement and Audit Results
Matt Garvey from RSM US LLP (formerly McGladrey LLP) provided an
overview of the audit stating it went very well and all filing deadlines were met. He
stated there were no audit adjustments, and no items deemed past adjustments to report.
He discussed the impact of the pension liability standards change, which added a new
$255 million noncurrent liability, which is discussed in footnote 7 of the Financial
Report. This change necessitated reporting a one year financial statement, rather than the
normal two year statement.
He added that in future years, beginning in 2018, Miami’s share of the retiree
healthcare benefit will also be included.
Following his public report, the Committee members met privately with RSM US
LLP.
Senior Vice President Creamer then continued the financial discussion by
providing a brief overview of recent financial trends for endowment and non-endowment
cash and investments. He also reviewed trends in bonds payable and unrestricted net
assets, trends in operating revenue, net tuition, fee revenue and state appropriations. He
then reviewed revenue from investment income, foundation investment income, federal
contracts, and permanent endowment additions. It was noted that Federal contracts
nationally are flat, but larger research institutions are receiving greater awards, in
particular universities with medical schools, thus tending to reduce awards to nonResearch 1 universities. The annual expense trend and the trend in interest cost on debt,
were also reviewed.
Dr. Creamer then went on to explain that revenue growth for the last five years is
primarily from enrollment growth and change in the enrollment mix (resident/nonresident), not from an increase in tuition cost. The recent rising enrollment numbers are
planned to level off beginning in fall 2016, and it was a matter of discussion if some
enrollment growth should be incorporated into the planning going forward.
Dr. Creamer then reviewed the ten year ratio trend, primary reserve ratio, viability
ratio, and net income ratio. It was then discussed how including the pension liability
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impacts these ratios and necessary reserves. It was remarked that the endowment is also
a consideration for strengthening these ratios.
The Financial Report, Auditor’s Report, and Dr. Creamer’s presentation are
included as Attachment A.
Report on Facilities, Construction and Real Estate
Capital Projects
Associate Vice President Cody Powell, updated the Committee on the status of
current capital projects. He outlined the progress since the last meeting, stating two
major projects were completed under budget, with funds returned.
He next reported that the Gunlock Family Athletic Performance Center footer and
foundation package is well underway, with steel expected in February. The North Quad
renovation is also well underway, with contractors now working inside from the top floor
down. The project is transforming the Martin Dining facility through a more open
interior.
Shideler Hall will begin receiving furniture within the next week. The renovated
facility will provide greater classroom flexibility and include exterior signage to
announce to visitors that they have arrived on campus.
Senior Vice President Creamer then updated the Committee on the Clawson Hall
renovation. He stated issues have been encountered that may result in the cost of the
project exceeding the cost of new construction. The additional cost necessitates a
reconsideration of the project, and the Committee will receive a report and alternatives at
the February meeting.
Resolutions
North Quad
A resolution was proposed to proceed with preconstruction for a new,
approximately 340 bed, residence hall located in North Quad on the site of the existing
tennis courts. The new residence hall will help address the up to 500 bed shortfall
estimated in the Housing Master Plan.
Trustee Wilson then moved, Trustee Gooden seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
Duke Utility Easement
A resolution was proposed granting a utility easement to allow work to rebuild the
Bonham Road bridge. The Butler County Engineer is managing the project, and upon
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completion the project is expected to provide a straighter pathway across the bridge and a
pedestrian walkway that would improve pedestrian safety.
Trustee Altman then moved, Trustee Mitchell seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
The presentation and resolutions are included as Attachment B.
Tuition Promise
A resolution establishing the Miami Tuition Promise was presented. Senior Vice
President Creamer spoke to the resolution stating it encompasses all fees under Miami’s
control, going beyond tuition and the general fee, to include room and board and other
fees. The Miami University Tuition Promise is expected to provide families greater
certainty for planning for the cost of higher education. Ohio Legislation in 2013 paved
the way for this program, resolving issues with fee caps that previously made it
impossible to set tuition and fees beyond each biennium.; throughout the process of
considering a tuition guarantee, students have led and advocated for the Tuition Promise,
with ASG addressing the committee and student senate passing resolutions of support.
Dr. Creamer explained that while the menu of fees are frozen, the application of
these fees to a student bill in any semester may be different. For example, while the
business school fee is locked in for its cost per credit hour for all four years, a student
taking different credit hour loads each semester will see the total fee vary semester to
semester by credit hours enrolled.
Dr. Creamer also explained that regional relocating students and students
transferring from other Ohio public schools are not disadvantaged under this plan. Such
students would receive the lower fee structure associated with their entering cohort
during the year they first began their higher education on the regionals or at another state
school. He also explained that students taking graduate courses during their four years
would receive the cohort pricing for their graduate studies as well.
It was commented that this was a true team effort and it is remarkable that it could
be implemented with only a very modest 2.74% increase for Ohio Students, during the
initial year.
Trustee Wilson then moved, Trustee Mitchell seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
The presentation and resolution are provided as Attachment C.
FY 2016 Undergraduate Tuition Ordinance
Senior Vice President Creamer stated that the Tuition Promise would be
submitted to the Chancellor for final approval and it would be advantageous to this
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review and for prospective students to know the actual cost of tuition under the new
program. The proposed undergraduate tuition ordinance does include the new cohort
tuition to be published for next year. The ordinance also addresses tuition for continuing
students on the Oxford campus. He further stated that summer tuition under the proposal
includes a 20% discount for on-line courses.
Trustee Bhati then moved, Trustee Gooden seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
The ordinance is included as Attachment D.
FY 2016 Room and Board Ordnance
Senior Vice President Creamer provided a comparison of room cost at nearby
institutions, and stated the meal plan will have greater flexibility and offer students
additional options. There was a question about first year students and their choice of a
residence hall. It was explained that students are placed in halls based on their choice of
Living Learning Community, however, the Housing Office does work with students who
prioritize cost to get them into less expensive options.
Trustee Wilson then moved, Trustee Bhati seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
The ordinance is included as Attachment E.
Endowment Administrative Fee
Bruce Guiot explained the resolution stating it recommends an adjustment in the
language to include advancement expenses beyond just development expenses only. It is
not a change in the fee itself, and the Foundation has already adopted the proposed
change.
Trustee Altman then moved, Trustee Bhati seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
The resolution is included as Attachment F.
Opportunity to Lower the Cost of Attending Miami University
Senior Vice President Creamer explained that this was presented to the
Committee at an earlier date, in response to the State Legislature’s requirement. Since
defining the opportunities, the Chancellor has asked that each State University’s Board of
Trustees specifically adopt their plan, and this resolution is therefore submitted.
Trustee Bhati then moved, Trustee Mitchell seconded, and by unanimous voice
vote, the Committee recommended approval by the full Board of Trustees.
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The presentation and resolution are provided as attachment G.
Year to Date Operating Results
Senior Vice President Creamer presented the year-to-date operating results,
compared to budget. He stated a strong performance is expected, due to the larger than
budgeted entering class. He was asked as to the portion of the budget which is funded by
the State, and replied it is approximately 9%.
Dr. Creamer was also asked about bad debt write off, and stated it is extremely
small, less than 0.1%. He explained this is due in large part to the many mechanisms
available to respond to past due payments, such as controlling registration, holding
transcripts, and turning collectables over to the State which has the ability to garnish tax
refunds.
Dr. Creamers report is included as Attachment H.
Internal Audit
Barbara Jenna, Director of Internal Audit and Consulting, updated the Committee
on the annual audit plan, which was approved in September, and covers all six divisions.
IT is the highest audit risk area and there will be several audits performed. A second area
of high audit risk is compliance, with a focus on federal and external compliance. She
informed the Committee that they had performed an audit of the registrar and of
construction projects, with Kreger Hall completed, and Shideler next to be done.
She was asked where laptops appear in the audit, it is in the end user device
inventory. The tracking of all end user devices is being explored, with a review of the
cost benefit. The devices themselves are short-lived, and replacement is not always an
issue, but also of concern is the stored data which can be of greater concern. The data
portion might be addressed through security rather than inventory.
She was asked if her office is adequately staffed, and replied that it is, staffing is
comparable to similar universities across state.
Ms. Jena explained the risk in academic records regarding withdrawals and grade
changes. The desire is to require student and professor confirmation for post semester
changes.
She was asked as to why some high risk areas remain open. She explained that
the fix can sometimes be complicated, or as the initial concern is addressed, new
concerns arise. It was suggested that IT could be subcategorized to best track IT items
which often expand in scope and have new risks identified. It was also explained that
there is a tool to assist in such tracking, and the purchase and recurring costs are being
weighed.
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Following her presentation, the Committee members met privately with Ms. Jena.
Ms. Jena’s report is included as Attachment I.
Forward Agenda
It was requested that an update on new revenue sources be included; the Provost
and Dr. Creamer will pursue placing it on the February agenda.
There was a question about addressing revenue needs with the Engineering and
Computing division. It is believed that this issue is best examined through the Provost’s
office.
The forward agenda is included as Attachment J.
Additional Reports
The following written reports were provided for the Committee’s information and
review:
University Advancement Update, Attachment K
Report on Cash and Investments, Attachment L
Enrollment Report, Attachment M
Lean Project Update, Attachment N
Adjournment
With no other business coming before the Committee, the meeting adjourned the
meeting at 4:30 p.m.
Theodore O. Pickerill II
Secretary to the Board of Trustees
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Attachment A
Financial Report 2015
December 3, 2015
Financial Report
2015
Miami University: Equal opportunity in education and employment.
Produced by University Communications and Marketing 0.3K1215
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Attachment A
Financial Report 2015
Trustees and Officers as of JUNE 30, 2015
Miami University Board of Trustees
Administrative Officers
Date listed is expiration of term.
David C. Hodge
President
David Budig, Chair
February 28, 2022
Mark Ridenour, Vice Chair
February 28, 2020
Dennis A. Lieberman, Secretary
February 28, 2018
Jagdish K. Bhati, Treasurer
February 28, 2019
Sharon J. Mitchell
February 28, 2016
Robert W. Shroder
February 28, 2021
Stephen P. Wilson
February 28, 2023
National Trustees (non-voting)
December 3, 2015
MIAMI UNIVERSITY
Phyllis Callahan
Provost and Executive Vice President
for Academic Affairs
David K. Creamer
Sr. Vice President for Finance and Business
Services/Treasurer
Michael Kabbaz
Vice President for Enrollment Management
and Student Success
J. Peter Natale
Vice President for Information Technology
Jayne Brownell
Vice President for Student Affairs
Tom Herbert
Vice President for University Advancement
John Altman
June 30, 2016
Robin Parker
General Counsel
Terry Hershey
June 30, 2016
Ted Pickerill
Secretary, Board of Trustees and Executive Assistant
to the President
Robert E. Coletti
June 30, 2017
Diane F. Perlmutter
June 30, 2017
C. Michael Gooden
June 30, 2018
Student Trustees (non-voting)
Mary Adeline Lewis
February 28, 2016
Ciara R. Lawson
February 28, 2017
Financial Services Staff
The 2015 financial report and investments report were
prepared by the Miami University Controller’s Office and
the Treasury Services Office.
Sarah C. Persinger
Controller
Jennifer B. Morrison
Assistant Controller
Bruce A. Guiot
Chief Investment Officer and Associate Treasurer
Cynthia L. Ripberger
Senior Associate Director of Investments and
Treasury Services
Statement of Nondiscrimination
Miami University is committed to providing equal opportunity and an educational and work environment free from discrimination on the basis of sex, race, color, religion,
national origin, disability, age, sexual orientation, gender identity, military status, or veteran status. Miami shall adhere to all applicable state and federal equal opportunity/
affirmative action statutes and regulations.
The university is dedicated to ensuring access and equal opportunity in its educational programs, related activities, and employment. Retaliation against an individual who
has raised claims of illegal discrimination or cooperated with an investigation of such claims is prohibited.
Students and employees should bring questions or concerns to the attention of the Office of Equity and Equal Opportunity, Hanna House, 529-7157 (V/TTY) and
529-7158 (fax). Students and employees with disabilities may contact the Office of Disability Resources, 19 Campus Avenue Building, 529-1541 (V/TTY) and 529-8595 (fax).
EthicsPoint
EthicsPoint is an anonymous method for reporting illegal, unethical, or other conduct that violates Miami’s policies. Miami (along with many other universities) has contracted
with EthicsPoint to provide this service. Reports may be filed at www.EthicsPoint.com
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Attachment A
Financial Report 2015
December 3, 2015
Treasurer’s Report
Financial Highlights
For the sixth consecutive year, the University reported positive financial results. For fiscal year 2014-15, the improved financial position
is reflected in total assets, which rose 4.2 percent to a total of $1.98 billion. Net position also increased by $112.1 million.
Undergraduate tuition and fees were increased by 2.0 percent for resident and non-resident students. On the Oxford campus, a firstyear class of 3,635 students represented an increase of 0.7 percent, and surpassed the goal of 3,600 students. Total fall 2014 enrollment
on the Oxford campus grew by 1,129 students while enrollment on the regional campuses decreased by 207 students. Operating
revenues increased by 5.9 percent or $28.2 million largely due to the increase in enrollment but also to modest increases in tuition,
room and board rates and revenues from the second year of the winter semester. The overall increase in operating expenses of $14.1
million or 2.8 percent was primarily a net result of a 2.5 percent salary increase for all faculty and staff offset by a decrease in health
insurance claim expense. Investment portfolios were challenged during the fiscal year, resulting in a decrease of $31.6 million in net
investment income.
Future Outlook and Challenges
In prior years, the University developed a new strategic plan, The Miami 2020 Plan, which provides the overarching goal for the entire
campus to contribute to a vibrant learning and discovery environment that produces extraordinary student and scholarly outcomes.
During fiscal year 2015, every department and division continued to develop strategies and metrics in order to achieve the three core
foundation objectives of a transformational work environment; inclusive culture, global engagement, and effective partnerships and
outreach. The progress of these strategies and metrics will be tracked and presented to the Board of Trustees.
Fiscal year 2015 represented the fifth and final year for implementing the recommendations of the Strategic Priorities Task Force
(SPTF), which led to over $47 million in improvement through 2015.
The fall 2015 first-year enrollment of approximately 3,800 on the Oxford campus surpassed the goal of 3,550 students. The academic
quality of the incoming class improved for the third consecutive year with average ACT scores increasing from 27.6 to 28. Non-resident
first-year enrollment is 45.0 percent as compared to 43.4 percent for the fall 2014 class. First year enrollments on the Hamilton campus
decreased by 9.6 percent, while the Middletown campus decreased by 9.7 percent. The University increased tuition by 2.0 percent for
the non-resident undergraduate students on all campuses.
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Financial Report 2015
December 3, 2015
For fiscal year 2016, Miami’s state share of instruction is budgeted to increase by approximately $4.9 million or 8.7 percent for the
Oxford campus, and decrease by $80,000 or 0.7 percent for the regional campuses.
Higher education continues to experience a high degree of change and transformation. Technology is transforming the learning
environment and new models of education are continually being developed and marketed. Public accountability, the cost of tuition and
student debt are dominating the conversation about higher education both nationally and in Ohio. With the completion of the Miami
2020 Strategic Plan, together with a strong commitment toward improving operating efficiencies and a dedicated and committed
faculty and staff, Miami University remains well positioned to overcome these challenges and to take advantage of the opportunities
that come with the change facing higher education.
Respectfully submitted,
Dr. David K. Creamer
Senior Vice President for Finance and Business Services and Treasurer
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Attachment A
Financial Report 2015
December 3, 2015
Investment report
Miami University and Miami University Foundation
June 30, 2015
Investment Pools
Total investments held by Miami University and the Miami University Foundation crossed a significant milestone during the fiscal
year ending June 30, 2015, finishing the year in excess of one billion dollars for the first time versus $934 million at the previous
year-end. This increase in assets is attributable to continued improvement in University operating cash flow and sustained giving
levels, in spite of a difficult investment environment.
The Miami University Foundation’s investment committee provides governance oversight to one unified endowment investment pool
for the University and the Foundation, while the University maintains oversight of the non-endowment pool. The fiscal year-end
asset values among the pools are as follows:
Pool Type of Funds University Non-endowment
Working capital and cash reserves
to support operating activities
$516,491,000
University & Foundation Endowments
Funds donated to the university and the
foundation to establish endowments in perpetuity
$ 460,141,000
Trusts, Annuities, and Separately Invested Assets
Gifts managed independently of
the pooled funds
$ 26,142,000
Total Investments
Invested as of June 30, 2015
$ 1,002,774,000
The University’s non-endowment pool holds the working capital and cash reserves that fund the University’s operating activities.
Its balance fluctuates significantly during the course of a year based on the University’s cash flow cycle of receipts and expenditures.
June 30 typically marks the low point of this annual cycle.
The combined endowment pool invests endowed gifts from donors. The pool operates under the philosophy that the funds are invested
in perpetuity to provide benefits to today’s students as well as to the many generations of Miami students yet to come. Miami invests
the funds with the confidence that economic cycles will rise and fall, but that a well diversified portfolio will provide the long-term
growth necessary to preserve the purchasing power of the endowment across the generations. The investment policy governing the
endowment pool recognizes that the portfolio can tolerate year-to-year fluctuations in return because of its infinite time horizon,
and looks beyond short-term fluctuations toward an investment philosophy that provides the best total return over very long time
periods.
The University and Foundation also hold assets given by donors in the form of trusts, annuities, insurance policies, real estate, and
other assets. These funds are managed separately from the endowment pool.
Over the last decade, total investment assets have nearly doubled. The pools have increased in value through a combination of prudent
fiscal management, generous support from donors, and solid investment earnings. We appreciate the enduring generosity of our
alumni and friends, along with the wisdom and leadership of our trustees and directors, as we continue to navigate this period of
unprecedented transformation in both higher education and the global capital markets.
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Attachment A
Financial Report 2015
December 3, 2015
return strategy. No managers were liquidated. As a result, the
allocation to long-term capital rose from sixty percent to sixty
six percent versus last year. The potential for increases in interest
rates have reinforced a bias toward absolute return strategies and
low duration bonds.
Asset Allocation
The non-endowment pool has three components. Operating cash
represents the University’s working capital and is invested in
short-term cash equivalents, with a target balance of two to six
months of average cash needs. Core cash represents short-term
reserves and is invested in high quality short-term and
intermediate-term fixed income investments, also with the target
balance of two to six months of average cash needs. Long-term
capital consists of longer-term reserves and represents the
remainder of the pool. It is invested in a mix of longer maturity
bonds and absolute return hedged strategies.
During the year, cash flow generation was again very strong due
to sustained improvements in University operating efficiency.
This growth in operating cash continues to present a major
challenge, however, as short-term interest rates enter their seventh
year near zero. Several rebalancing actions were taken during
the year to reduce operating cash balances and increase the pool’s
earnings potential. These moves were accomplished by initiating
two new absolute return strategies and adding to one absolute
The endowment pool’s primary asset allocation strategy uses
three asset categories: equity, debt, and real assets. Within each
category, exposure can be attained through three types
of strategies: long-only public, hedged, or private. Managers
employed tend to have broad, unconstrained mandates, allowing
them great flexibility to pursue opportunities. Most of these
managers have a global mandate.
At fiscal year-end, total equity related strategies represented about
fifty eight percent of the combined portfolio, up by about four
percentage points during the year. The increase was due to the
addition of capital to hedged equity and coupled with
performance experienced in hedged equity and public equity
strategies that was relatively stronger than debt and real asset
strategies. The reduction in private equity was from the return
of capital from mature programs. Real asset exposure decreased
by two percentage points primarily due to the impact of falling
commodity prices. Over the last five years, the primary allocation
shift has been away from public equity and towards public real
asset strategies.
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Attachment A
Financial Report 2015
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The third measure of the endowment’s asset allocation is liquidity,
or how quickly the exposure to a particular manager can be
redeemed and turned into cash. About 39 percent of the portfolio
could be converted to cash within seven days, while the illiquid
portion, in private limited partnerships, has been shrinking with
the return of capital from mature programs.
Another way to consider the endowment’s asset allocation is
through geographic diversity. The portfolio emphasizes managers
that invest globally, usually allowing the manager to determine
the most opportune places in the world to allocate capital. The
concept of geography is often difficult to quantify, since an
investment might be domiciled in one country, trade in another,
derive its current revenue globally, and perceive its future
earnings growth to be in completely new markets. The following
chart depicts the total endowment’s estimated exposure by
domicile in four broad categories: North America, Europe, Asia,
and LAMA (Latin America, Middle East, and Africa).
Miami treats each investment manager relationship like a
partnership and, along with its external advisors, expends
considerable effort on the due diligence process. The investment
consultants focus on manager research, including back office due
diligence, and conduct regular statistical reviews to examine the
role each manager is playing in the portfolio. Staff has quarterly
conversations with each manager to understand their strategic
thinking and to monitor their activities. Ongoing oversight tasks
include making manager site visits, attending investor
conferences, reading trade publications, tracking government
filings, and monitoring the managers’ service providers.
In total, the endowment employs 27 external managers, some
with multiple mandates. During the year, new relationships were
established with two global hedged equity mangers, one global
public equity manager, and one private real assets manager. Two
managers, one in hedged equity and one in public equity, were
terminated. In addition, two private equity funds made final
liquidating distributions.
Investment Returns
The University’s non-endowment pool earned 1.6 percent for the
fiscal year ended June 30, 2015, down from the 5.2 percent earned
in the previous year. Annualized performance for the trailing
five years was 3.0 percent, providing annualized added return
versus the 90-day Treasury bill over that period of 2.9 percentage
points. The recent results were achieved in spite of sustained near
zero short-term interest rates that significantly limit the earnings
potential of a significant portion of this pool. The absolute return
strategies in the long-term capital portion of the pool produced
returns in excess of 3.2 percent for the year, and have averaged
8.6 percent over the last three years.
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Attachment A
Financial Report 2015
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The endowment pools earned an estimated 1.5 percent for the
fiscal year. This figure excludes the private capital portion of the
portfolio that reports on a significant delay. These results follow
two consecutive years of positive double digit returns. Estimated
annualized performance for the trailing ten years was 5.9 percent.
Hedged equity and hedged debt strategies provided the best
returns for the year as managers were able to capitalize on surging
volatility. While public real assets provided the highest returns
over the last three years, they represented the largest drag on
results for the fiscal year due to the significant decline in oil and
other commodity prices.
The combined distribution for fiscal year 2015 was about $19.3
million. This amount, about $400,000 greater than the previous
year, represents the largest endowment distribution ever for
Miami. Over the last ten years, the cumulative distributions have
totaled almost $157 million and have provided an important
source of funding to help offset reductions in state support. The
following chart shows the proportion of programs supported by
the 2015 distributions.
Program Support
Endowments provide a lasting legacy for Miami because their
principal is invested in perpetuity, and an annual distribution is
made to support a variety of activities of the University. The
spending policies of the University and Foundation are intended
to achieve a balance between the need to preserve the purchasing
power of the endowment principal in perpetuity and the need to
maximize current distribution of endowment earnings. Fulfilling
these dual objectives is often referred to as achieving
“intergenerational equity,” in which no generation of college
students is advantaged in relation to other generations.
The formula under which annual spending distributions are
calculated is a blend of two elements: an inflation component (70
percent of the formula) that increases the prior year’s distribution
by the rate of inflation, and a market factor (30 percent of the
formula) that ties the distribution to the market value of the
investments. This formula was adopted in fiscal year 2004 and is
intended to reduce volatility caused by various market conditions,
while maintaining intergenerational equity and preserving the
purchasing power of the endowed principal.
Miami’s current fundraising priority, the $100 million Miami
Promise Scholarship Campaign, was launched during the fiscal
year. It reinforces the institution’s continued focus on attracting
high achieving students to Miami, while making the Miami
experience more accessible to a wider array of students. Your
support of Miami is profoundly impactful in so many ways, and
is deeply appreciated by the entire Miami community.
6
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December 3, 2015
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Attachment A
Financial Report 2015
Management’s Discussion and Analysis
December 3, 2015
JUNE 30, 2015
Introduction
The following discussion and analysis provides an overview of the financial position and activities of Miami University for the year ended June 30,
2015. This discussion should be read in conjunction with the accompanying financial statements and footnotes.
The University’s annual report consists of this Management’s Discussion and Analysis, the Statement of Net Position, the Statement of Revenues,
Expenses, and Changes in Net Position, the Statement of Cash Flows, and the Notes to the Financial Statements. The financial statements of the
University have been prepared on the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recorded when the
related liability has been incurred. The financial activity of the Miami University Foundation, a component unit of the University, is included through a
discrete presentation as part of the University’s financial statements.
The financial statements, footnotes, and this discussion have been prepared by and are the responsibility of University management.
Financial Highlights
The University reported favorable year-end results for the sixth consecutive year. Enrollment gains, a modest tuition increase and a continued focus
on controlling operating costs have been important contributing factors to these successful results.
Overall the University’s financial position improved at June 30, 2015. Total assets rose 4.2 percent from $1.90 to $1.98 billion. Liabilities increased
$236.3 million and totaled $1.01 billion. Significant financial events during fiscal year 2015 were:
• The University implemented a 2.0 percent tuition increase for resident and non-resident undergraduate students on all campuses.
• The fall 2014 first-year enrollment was 3,635 on the Oxford campus, which represented a 0.7 percent increase over the previous year, as well as
surpassing the institutional goal of 3,600 students. The academic credentials of the incoming freshmen class include an improved average ACT
score, increasing from 27.5 to 27.6, as well as 34.0 percent of the incoming freshman class having graduated in the top 10 percent of their high
school class. Non-resident first-year enrollment was 43.4 percent as compared to 39.5 percent for the fall 2013 class. There was a 5.8 percent
decrease in transfer students but an increase of 2.6 percent in relocation students. International student enrollment comprises 8.9 percent of the
fall 2014 class. The first-year class enrollment on the Hamilton campus decreased by 49 students, while the Middletown campus first-year class
enrollment increased by 10 students.
• The investment portfolios were challenged during the fiscal year. Operational investments recorded a return of 1.6 percent, down from 5.2
percent achieved in the previous year. Near zero short term interest rates and the anticipation of tighter monetary policy from the Federal Reserve
continued to provide imposing barriers to higher returns. The combined University and Foundation endowment pools reported estimated
returns of 1.5 percent, down from 14.4 percent in the previous year. Results were hampered by an increase in volatility and the steep decline in
energy and other commodity prices, triggered in part by the economic slowdown in China and other emerging economies.
• For fiscal year 2015, the University increased salaries by 2.5 percent. General fund salary and benefit expense on all three campuses increased by
$12.2 million to $236.3 million, which was $15.9 million below the adopted budget. Although a hiring freeze is not in effect, requests to add new
positions or fill previously vacant positions are carefully scrutinized.
• As noted above, the liabilities increased $236.3 million with the primary reason being a result of the University implementing GASB 68,
Accounting and Financial Reporting for Pensions – an amendment of GASB Statement 27, which required the University to record their
proportionate share of the net pension liabilities for the State Teachers Retirement System of Ohio (STRS Ohio) and the Ohio Public Employees
Retirement System of Ohio (OPERS), resulting in a net pension liability of $254.7 million at June 30, 2015.
9
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Financial Report 2015
Management’s Discussion and Analysis
December 3, 2015
JUNE 30, 2015
Statement of Net Position
The Statement of Net Position presents the assets, liabilities, deferred outflows/inflows of resources, and net position of the University as of the
end of the fiscal year. The difference between total assets and total liabilities, or net position, is one indicator of the overall strength of the institution.
Also, the increase or decrease in total net position indicates whether the financial position of the institution is improving or declining. Except for capital
assets, all other assets and liabilities are measured at a point in time using current values. Capital assets are recorded at historical cost less an allowance
for depreciation.
Net position is classified into three major categories. The first category, invested in capital assets, reports the institution’s net equity in property,
plant, and equipment. The second major category, restricted net position, reports assets that are owned by the institution, but the use or purpose of the
funds is restricted by an external source or entity. This category is subdivided into two types: nonexpendable and expendable. Nonexpendable restricted
assets are primarily endowment funds that may be invested for income and capital gains, but the endowed principal may not be spent. Expendable
restricted assets may be spent by the institution, but only for the purpose specified by the donor, grantor, or other external entity. The third category,
unrestricted net position, is separated into two types: allocated and unallocated. Allocated unrestricted assets are available to the institution, but are set
aside for a specific purpose by University policy, management, or the governing board. Unallocated unrestricted assets are available to be used for any
lawful purpose of the institution.
Assets
Current assets
Capital assets, net
Long-term investments
Other assets
Total assets
$ 749,862,579
1,048,208,385
174,444,558
11,635,530
$ 1,984,151,052
Deferred Outflows of Resources
$
Liabilities
Current liabilities
Noncurrent liabilities
Total liabilities
$ 101,336,993
909,140,240
$ 1,010,477,233
Deferred Inflows of Resources
$
Net Position
Investment in capital assets
Restricted – nonexpendable
Restricted – expendable
Unrestricted – allocated
Unrestricted – unallocated
Total net position
$ 564,091,473
94,117,310
82,437,918
196,344,051
14,370,093
$ 951,360,845
19,803,662
42,116,636
Total assets of the institution increased 4.7 percent or $88.7 million in fiscal year 2015. This increase was the result of an increase in capital assets
and current investments combined with a decrease in cash and cash equivalents in the amount of $121.9 million, or 54.9 percent. Details of the $104.6
million or 11.1 percent increase in capital assets are provided in the Capital Assets and Debt Administration section of this report.
Total liabilities of the institution increased $236.3 million, or 30.5 percent, and is primarily the result of implementing GASB Statement 68,
Accounting and Financial Reporting for Pensions - an amendment of GASB Statement 27, which required the University to record their proportionate
share of the net pension liabilities for the State Teachers Retirement System of Ohio (STRS Ohio) and the Ohio Public Employees Retirement System
of Ohio (OPERS). Other current and noncurrent liabilities remained relatively unchanged. Overall, net position increased by $112.1 million.
10
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December 3, 2015
MIAMI UNIVERSITY
Statement of Revenues, Expenses and Changes in Net Position
The Statement of Revenues, Expenses, and Changes in Net Position presents the University’s results of operations for the fiscal year. The revenues
and expenses are generally reported as either operating or non-operating. Operating revenues are generated by providing goods and services to
customers and constituencies of the institution. Operating expenses are incurred when goods and services are provided by vendors and employees for
the overall operations of the University. Non-operating revenues include the student instructional subsidy from the State of Ohio, while other revenues
include the State’s capital appropriation. Investment returns are also included in non-operating revenue. Interest on debt is the primary component of
non-operating expense.
In fiscal year 2015, total revenues of the institution from all sources were approximately $665.3 million, which represents a $4.33 million or 0.6
percent decrease from the prior year. Approximately 75.8 percent of revenues were classified as operating, and 20.0 percent were classified as
non-operating revenues.
Operating revenues Non-operating revenues Other revenues Total revenues
Operating expenses Non-operating expenses Total expenses Change in net position $ 504,453,710
133,306,086
27,505,429
665,265,225
(524,868,419)
(28,324,275)
(553,192,694)
$ 112,072,531
$337.1
$140.4
$69.3
$77.7
$11.5
$14.6
$14.8
The University revenue base is shown in the
accompanying chart. Student tuition and fees make
up the largest percentage of revenues at slightly
more than 51.0 percent, while auxiliary enterprises
such as residence and dining halls, several student
recreational facilities, and the bookstore account for
the second highest amount at 21.0 percent. Gifts,
grants, and contracts represent 2.0 percent, as does
endowment and investment income due to factors
that were previously discussed. State appropriations
are 10.0 percent of the total and State capital
appropriations are 12.0 percent.
2015 Revenue
STUDENT FINANCIAL AID
2015 Total = $217.2 ($ in millions)
Miami - Athletic
Scholarships, $10.3
Miami - Donor
Designated Scholarships, $11.4
Federal Grants
& Work Study, $28.8
Ohio Grants, $1.7
Federal Loans,
$92.6
Miami - Annually
Budgeted
Scholarships, $55.6
Private Loans,
$16.8
The University continues to expand the merit
scholarship packages for in-state and out-of-state
students in order to recognize student achievement
and to continue to make a high quality education
more affordable for parents and students. In fiscal
year 2015, Miami-funded financial aid increased by
$8.4 million or 12.2 percent. In total, financial aid
awards were $217.2 million.
11
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Financial Report 2015
Management’s Discussion and Analysis
December 3, 2015
JUNE 30, 2015
Statement of Cash Flows
The Statement of Cash Flows presents detailed information about the major sources and uses of cash by the institution for the fiscal year. The cash
flow analysis is divided into four types of cash flows: operating activities, noncapital financing activities (which includes the state appropriations as well
as gift revenues), capital and related financing activities (which includes debt activity), and investing activities.
Net cash provided by operating activities
Net cash provided by noncapital financing activities
Net cash used in capital and related financing activities
Net cash used in investing activities
Net decrease in cash and cash equivalents
Cash and Cash Equivalents
Beginning of year
End of year
$ 15,399,378
122,426,491
(172,198,658)
(87,579,064)
(121,951,853)
222,217,793
$ 100,265,940
The net $121.9 million decrease in the fiscal year 2015 cash and cash equivalents balance primarily relates to the utilization of bond proceeds for the
construction and renovation of capital assets.
Throughout the year, cash was used for capital acquisitions, payment of debt, investment activities, and operating activities. These uses of cash were
offset in part by the cash provided by tuition and fees, state appropriations, sales by auxiliary enterprises, gifts, and grants.
Capital Assets and Debt
Administration
During fiscal year 2015, the University completed and capitalized
several projects. These projects were funded by a combination of
bond proceeds, state capital appropriations, gifts, and local funding.
The bond proceeds were generated from the 2010A Series General
Receipts and the 2011 Series General Receipts Revenue Bonds totaling
$86.6 million. Major projects capitalized in 2015 include renovation
projects at Beechwoods Hall, Hillcrest Hall, Stonebridge Hall, Kreger
Hall, the Yager Indoor Practice Facility, Millett Hall, Phelps Hall, and
Johnston Hall. See Note 4 for additional information concerning capital
assets and accumulated depreciation.
The University’s bond rating remained the same with a rating of
Aa3 from Moody’s Investors Services and a rating of AA from Fitch
Ratings. For more detailed information on current outstanding debt,
see Note 5 and 6.
On July 30, 2015, the University issued $52,335,000 of Series
2015 General Receipts and Refunding Bonds through a direct bank
purchase process. The proceeds of the Series 2015 Bonds will be used
to refund the Miami University Series 2005 General Receipts and
Refunding Bonds.
Economic Factors That Will Affect
the Future
Similar to the national conversation, affordability and efficiency are the
most talked about issues confronting higher education in Ohio.
Over the last decade Ohio is the only state in the nation where four year
public universities have held increases in tuition below inflation, but
Ohio’s public universities continue to have the twelfth highest average
cost for in-state tuition and mandatory fees. In order to make further
progress in improving affordability, the Ohio General Assembly in June
2015 legislated that resident tuition and mandatory fees are to be frozen
at the fall 2014 amount for fall 2015 and fall 2016. To help offset the lost
tuition revenue, the state appropriation was increased by 4.7 percent for
fiscal year 2016 and 4.0 percent for fiscal year 2017.
Political efforts aimed at improving affordability and efficiency did
not end there, as legislation was also passed requiring all of Ohio’s public
colleges and universities to develop strategies for enabling students
to lower their cost of attendance by at least 5 percent. A task force
was appointed by Governor Kasich to identify recommendations for
operating Ohio’s colleges and universities more efficiently and directing
the resulting savings to improving student affordability or services that
improve the likelihood that students will graduate on-time or early.
In response to these directives, Miami University appointed an
advisory committee on affordability and efficiency to provide ideas and
recommendations to the Governor’s task force and to develop the Miami
University plan for providing its students the opportunity to lower their
cost of attendance by the stated 5 percent goal. Given the increased focus
on affordability, Miami University has also developed a guaranteed tuition
proposal that is expected to be considered by its Board of Trustees during
fiscal year 2016.
12
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December 3, 2015
MIAMI UNIVERSITY
Recognizing the ongoing significance of these issues, the University
intends to form a standing committee devoted to affordability and
efficiency to assist in identifying further improvements beyond these
initial efforts. This committee is expected to pattern its work after the
Strategic Priorities task force that developed a five year plan for new
revenue strategies and improved operating efficiency in 2010 that led to
over $47 million in improvement through fiscal year 2015.
While efficiency and affordability are dominating the external
discussion about higher education, enrollment continues to be a
strategic priority at the University. The fall 2015 first-year enrollment is
approximately 3,800 on the Oxford campus, which surpassed the goal
of 3,550 students. This is the largest incoming class in Miami’s history
and is approximately 80 students above the previous year. For the third
consecutive year, the academic quality of the incoming class improved
with average ACT scores increasing from 27.6 to 28. Non-resident firstyear enrollment is 45.0 percent as compared to 43.4 percent for the fall
2014 class.
First-year enrollments at the Hamilton campus and the Middletown
campus decreased by 9.6 percent and 9.7 percent, respectively.
New academic program offerings and improved enrollment strategies
are in development for the regional campuses in response to the negative
enrollment trend facing many less selective campuses in Ohio and
around the nation.
For fiscal year 2016, the University’s state share of instruction is
budgeted to increase by approximately $4.9 million or 8.7 percent for the
Oxford campus and decrease by $80,000 or 0.7 percent for the regional
campuses. The overall change for Miami University is an increase of
$4.8 million or 7.1 percent or about 3.4 percent more than the statewide
increase in the appropriation.
The University kicked off its Graduating Champions campaign
in April, 2015. This fundraising campaign is focused on increasing
scholarship support and improving athletic facilities, to realize the
vision for “what Miami Athletics can and should be” in the words of
David Saylor, Director of Intercollegiate Athletics. The University also
continued the Miami Promise Scholarship campaign, launched in 2014
with a $100 million goal over five years.
Finally, in May 2015, Dr. David Hodge announced that his tenure as
president of Miami University would come to an end in July 2016 after
ten years. A presidential search process was immediately initiated by the
Board of Trustees and is expected to culminate in the appointment a
highly qualified leader for the University by the summer of 2016.
Higher education continues to experience a high degree of
change and transformation. Technology is transforming the learning
environment and new models of education are continually being
developed and marketed. Public accountability, the cost of tuition and
student debt are dominating the conversation about higher education
both nationally and in Ohio. With the completion of the Miami 2020
Strategic Plan, together with a strong commitment toward improving
operating efficiencies and a dedicated and committed faculty and staff,
Miami University remains well positioned to overcome these challenges
and to take advantage of the opportunities that come with the change
facing higher education.
Miami has been one of the
Kiplinger’s 100 Best Values
in Public Colleges every
year since 1998.
13
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Attachment A
Statement of Net Position
Financial Report 2015
December 3, 2015
JUNE 30, 2015
MIAMI UNIVERSITY
Assets
and Deferred Outflows
Miami University Current Assets
Cash and cash equivalents (includes bond proceeds of $35.4 million)
Investments Accounts, pledges and notes receivable, net Inventories Prepaid expenses and deferred charges $
Total current assets Noncurrent Assets
Restricted cash and cash equivalents Investments Pledges and notes receivable, net Net pension asset Nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets 100,265,940 University Foundation
$
591,269,861 50,450,366 3,300,278 4,576,134 0
11,115,039
0
0
749,862,579 43,757,992
0
174,444,558 11,385,011 250,519 132,113,966 916,094,419 2,910,569
446,145,617
29,116,132
0
0
0
1,234,288,473 Total assets $ 1,984,151,052 Deferred Outflows of Resources
Deferred loss on refunding Pensions (Note 7) 32,642,953
478,172,318
$
521,930,310
214,575 19,589,087 Total deferred outflows of resources 0
0
$
19,803,662 $
0
$
35,351,593 15,501,467 1,492,386 10,912,157 10,721,326 27,358,064 0
$
16,201,846
0
0
0
0
0
635,373
Liabilities and Deferred Inflows
Current Liabilities
Accounts payable Accrued salaries and wages Accrued compensated absences Unearned revenue Deposits Long-term debt - current portion Other current liabilities Total current liabilities Noncurrent Liabilities
Accrued compensated absences Bonds payable Capital leases payable Federal Perkins loan program Net pension liability Other noncurrent liabilities Total noncurrent liabilities Total liabilities 16,837,219
17,061,788 628,373,926 2,403,000 6,552,992 254,748,534 0
0
0
0
0
0
182,946,264
909,140,240 182,946,264
$ 1,010,477,233 Deferred Inflows of Resources
Deferred gains on refunding Pensions (Note 7) $
199,783,483
870,615 41,246,021 Total deferred inflows of resources Net Position
101,336,993 $
42,116,636 0
0
$
0
Investment in capital assets Restricted:
Nonexpendable Expendable Unrestricted $
Total net position $
564,091,473 $
94,117,310 82,437,918 210,714,144 951,360,845 0
187,600,989
133,829,531
716,307
$
322,146,827
See Notes to Financial Statements
14
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Attachment A
Financial Report 2015
Statement of Revenues, Expenses and
Changes in Net Position JUNE 30, 2015
December 3, 2015
MIAMI UNIVERSITY
Miami University University Foundation
OPERATING REVENUES
Tuition, fees, and other student charges Less allowance for student scholarships $ 416,605,293 (79,552,497) $
0
0
Net tuition, fees, and other student charges 337,052,796 Net sales and services of auxiliary enterprises 140,392,111 11,520,909
0
1,888,479 2,425,950 727,481 204,709 10,241,275 0
17,735,567
0
0
0
0
0
Total operating revenues 504,453,710 17,735,567
Sales and services of auxiliary enterprises Less allowance for student scholarships 0
145,843,355 (5,451,244) Federal contracts Gifts Sales and services of educational activities Private contracts State contracts Local contracts Other OPERATING EXPENSES
Education and General
Instruction and departmental research Separately budgeted research Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships and fellowships Auxiliary enterprises Depreciation Other 0
0
0
178,334,980
13,789,283 3,607,350 54,723,216 23,217,533 44,214,921 32,876,467 19,283,546 107,586,374 43,292,502 3,942,247 Total operating expenses 524,868,419 Net operating (loss) income 0
0
0
0
0
0
0
0
0
0
0
0
(20,414,709) 17,735,567
69,284,263 28,866,651 20,684,821 0
0
0
Non-Operating Revenues (Expenses)
State appropriations Gifts, including those from the University Foundation Federal grants Net investment income, net of investment expense of
$2,407,107 for the University and $3,317,961 for the
Foundation in FY15 State grants Interest on debt Payments to Miami University Other non-operating revenues 10,680,607 1,151,262 (28,324,275) 0
2,638,482 1,869,822
0
0
(25,407,833)
(250,018)
Net non-operating revenues (expenses) 104,981,811 (23,788,029)
84,567,102 (6,052,462)
14,558,787 12,115,252 831,390 0
0
11,744,736
27,505,429 11,744,736
Income (loss) before other revenues, expenses,
and gains or losses Other Revenues, Expenses, Gains or Losses
State capital appropriation Capital grants and gifts Additions to permanent endowments Total other revenues, expenses, gains, or losses CHANGE IN NET POSITION Total net position at beginning of year, as restated (Note 7) Total net position at end of year 112,072,531 5,692,274
839,288,314 316,454,553
$ 951,360,845 $ 322,146,827
See Notes to Financial Statements
15
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Attachment A
Statement of Cash Flows
Financial Report 2015
JUNE 30, 2015
December 3, 2015
MIAMI UNIVERSITY
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition, fees, and other student charges Sales and services of auxiliary enterprises Contracts Other operating receipts Payments for employee compensation and benefits Payments to vendors for services and materials Student scholarships Loans issued to students and employees Collection of loans from students and employees $ 415,534,846
147,880,719
12,131,811
12,016,528
(324,092,263)
(143,782,452)
(104,288,947)
( 1,972,947)
1,972,083
Net cash flows provided by operating activities 15,399,378
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State share of instruction funds Grants for noncapital purposes Gifts 71,653,709
21,836,083
28,936,699
Net cash flows provided by noncapital financing activities 122,426,491
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
State capital appropriation Grants for capital purposes Other capital and related receipts Payments to construct, renovate, or purchase capital assets Principal paid on outstanding debt Interest paid on outstanding debt 12,127,296
11,204,235
514,976
(144,313,371)
(21,398,801)
(30,332,993)
Net cash flows used in capital and related financing activities (172,198,658)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments Purchases of investments Endowment income Other investment income 147,525,086
(247,369,631)
136,535
12,128,946
Net cash flows used in investing activities (87,579,064)
Net decrease in cash and cash equivalents (121,951,853)
CASH AND CASH EQUIVALENTS
Beginning 222,217,793
Ending $ 100,265,940
RECONCILIATION OF OPERATING LOSS TO NET CASH FLOWS USED IN OPERATING ACTIVITIES
Operating loss Adjustments to reconcile net operating loss to net cash provided by operating activities:
Depreciation expense Net gain on disposal of capital assets Accounts receivable bad debt adjustments Adjustments to reconcile change in net position to net cash provided by operating activities:
Accounts receivable Inventories Prepaid expenses and deferred charges Notes receivable Net pension asset Deferred outflows of pension resources Accounts payable Accrued salaries and wages Compensated absences Unearned revenue and deposits Federal Perkins loans Net pension liability Deferred inflows of pension resources Net cash flows provided by operating activities $ (20,414,709)
43,292,502
36,973
208,966
(3,806,397)
842,416
(281,925)
(18,622)
(40,300)
(19,589,086)
(3,225,889)
1,044,397
1,440,312
1,349,598
77,468
(19,435,778)
33,919,452
$ 15,399,378
Supplemental Disclosure of NonCash Information:
Property and equipment included in accounts payable $ 17,399,945
Property and equipment acquired by gifts in kind $
911,018
See Notes to Financial Statements
16
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Attachment A
Financial Report 2015
Notes to Financial Statements
JUNE 30, 2015
(1) Summary of Significant
Accounting Policies
Miami University (the University) is a land grant institution chartered
by the State of Ohio in 1809 and governed by a Board of Trustees (the
board). The board consists of up to 17 members, including two student
members and up to six non-voting national trustees. Voting members
are appointed one each year for nine-year terms by the governor with
the advice and consent of the state senate. The two student non-voting
members are appointed for two-year staggered terms by the governor
with the advice and consent of the senate, and the national trustees are
appointed by the voting members and can serve for no more than two
consecutive three-year terms.
The Governmental Accounting Standards Boards (GASB) Statement
No. 39 sets forth criteria to determine whether certain organizations for
which the University is not financially accountable should be reported
as component units based on the nature and significance of their
relationship with the University. The Miami University Foundation
(the Foundation), which is a separate not-for-profit foundation, meets
this criteria due to the significance of their operational or financial
relationships with the University. Note 10 provides additional information
on the Foundation. Certain disclosures concerning the Foundation are
not included because it has been audited separately for the year ended
June 30, 2015 and reports have been issued under separate cover.
The University’s financial statements are included as a discretely
presented component unit in the State of Ohio’s Comprehensive Annual
Financial Report.
Basis for Presentation
The financial statements of the University have been prepared on
the accrual basis of accounting, whereby revenues are recognized when
earned and expenses are recorded when the related liability has been
incurred. For financial reporting purposes, the University is considered a
special-purpose government engaged only in business-type activities as
defined by GASB Statement No. 34 and 35.
Recent and Pending Accounting Pronouncements
Effective July 1, 2014, the University adopted GASB Statement
No. 68, Accounting and Financial Reporting for Pensions—an amendment
of GASB Statement No. 27. The primary objective of this Statement is to
improve accounting and financial reporting by state and local
governments for pensions. It also improves information provided by
state and local governmental employers about financial support for
pensions that is provided by other entities. This Statement resulted from
a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for pensions with regard to
providing decision-useful information, supporting assessments of
accountability and interperiod equity, and creating additional
transparency. The adoption of this statement, further detailed in
Note 7, required a restatement of prior year net position to conform
to the 2015 presentation.
December 3, 2015
MIAMI UNIVERSITY
Effective July 1, 2014, the University adopted GASB Statement No.
69, Government Combinations and Disposals of Government Operations.
This Statement establishes accounting and financial reporting
standards related to government combinations and disposals of
government operations. As used in this Statement, the term government
combinations include a variety of transactions referred to as mergers,
acquisitions, and transfers of operations. The Statement is effective
for periods beginning after December 15, 2013. There has been no
impact to the University financial statements due to the adoption of
Statement No. 69.
Effective July 1, 2014, the University adopted GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement
Date—an amendment of GASB Statement No. 68. The objective of this
Statement is to address contributions made by a state or local government
employer or nonemployer contributing entity to a defined benefit plan
after the measurement date of the government’s beginning net pension
liability. The impact of the adoption of Statement No. 71 has been
reflected in Note 7.
In February 2015, GASB issued Statement No. 72, Fair Value
Measurement and Application. This Statement addresses accounting
and financial reporting issues related to fair value measurements,
including but not limited to, proving guidance for determining fair
value measurements for financial reporting purposes and applying fair
value to certain investments and disclosures related to all fair value
measurements. This Statement is effective for periods beginning after
June 15, 2015. The University has not yet determined the impact this
Statement will have on the financial statements.
In June 2015, GASB issued Statement No. 73, Accounting and
Financial Reporting for Pensions and Related Assets That Are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions
of GASB Statements 67 and 68. The objective of this Statement is to
establish requirements for those pension and pension plans that are not
administered through a trust meeting specified criteria. This Statement is
effective for periods beginning with the University’s year ending June 30,
2016, except those provisions that address employers and governmental
nonemployer contributing entities for pensions that are not within the
scope of GASB Statement No. 68, which are effective for the University
beginning with its year ended June 30, 2017. The University feels this
Statement will not have an impact on the financial statements.
In June 2015, GASB issued Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans. The objective
of this Statement is to improve the usefulness of information about
postemployment benefits other than pensions (other postemployment
benefits or OPEB) included in the general purpose external financial
reports of state and local governmental OPEB plans for making decisions
and assessing accountability. This Statement is effective for periods
beginning after June 15, 2016. The University feels this Statement will
not have an impact on the financial statements.
17
Attachment A
Overall Page 26 of 204
Attachment Page 19 of 59
Attachment A
CONTINUED -
Financial Report 2015
Notes to Financial Statements
In June 2015, GASB issued Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions.
The primary objective of this Statement is to improve accounting and
financial reporting by state and local governments for postemployment
benefits other than pensions (other postemployment benefits or OPEB).
This Statement is effective for the University beginning with its year
ending June 30, 2018. The University has not yet determined the impact
this Statement will have on the financial statements, however, expects the
impact to be material.
In June 2015, GASB issued Statement No. 76, The Hierarchy of
Generally Accepted Accounting Principles for State and Local Governments.
This Statement supersedes GASB Statement No. 55 and reduces the
existing hierarchy to two categories of authoritative GAAP and addresses
the use of authoritative and nonauthoritative literature in the event that
the accounting treatment for a transaction or other event is not specified
within the source of authoritative GAAP. The requirements of this
Statement are effective for reporting periods beginning after June 15,
2015. The University believes this Statement will not have an impact on
the financial statements.
In August 2015, GASB issued Statement No. 77, Tax Abatement
Disclosures. This Statement requires disclosure of tax abatement
information about (1) the reporting government’s own tax abatement
agreements and (2) those that are entered into by other governments
and that reduce the reporting government’s tax revenues. For financial
reporting purposes, tax abatement is defined as resulting from an
agreement between a government and an individual or entity in which
the government promised to forgo tax revenues and the individual or
entity subsequently take specific action to contribute to the economic
development or other benefits of the government. The requirements
of this Statement are effective for reporting periods beginning after
December 15, 2015. The University believes this Statement will not have
an impact on the financial statements.
Cash and Cash Equivalents
Cash consists primarily of cash in banks and money market accounts.
Cash equivalents are short-term, highly liquid investments readily
convertible to cash, with an original maturity of three months or less.
Investments
Investments that are market traded, such as equity and debt securities,
mutual funds, and cash equivalents, are recorded at fair value based on
quoted market prices, as established by the major securities markets.
The value of holdings of commingled funds investing in publicly traded
stocks and bonds and not having a readily determined market value
for fund units is based on the funds’ net asset value as supplied by the
investment manager. Investments in real estate are recorded at appraised
value at the date of donation.
December 3, 2015
JUNE 30, 2015
Inventories
The University bookstore inventories are stated at the lower of first-in,
first-out cost or net realizable value. The supply room inventories are
stated at the weighted average value. All other inventories, including the
Culinary Support Center and Goggin Ice Center, are stated at the last
price paid value.
Capital Assets
Land, buildings, and equipment are recorded at cost at date of
acquisition or market value at date of donation in the case of gifts.
Intangible assets include patents, trademarks, land rights and computer
software. Land, collections of works of art and historical treasures are
capitalized but not depreciated. Any collection that is not capitalized is
charged to operations at the time of purchase. Depreciation is computed
using the straight-line method over the estimated useful lives of the
respective assets. Estimated useful lives are 50 years for buildings; 25
years for infrastructure, library books and land improvements; 20 years
for improvements to buildings; and 5 to 7 years for equipment, vehicles,
and furniture. Intangible assets are depreciated based on the estimated
life of each asset. The University’s capitalization threshold is the lower
of 5 percent of the original building cost or $100,000 for building
renovations and $5,000 for other capitalized items. The capitalization
threshold for intangible assets is $100,000 except for internally
generated computer software which has a threshold of $500,000.
Unearned Revenue
Tuition and fees relating to summer sessions that are conducted
in July and August are recorded in the accompanying statement of
net position as unearned revenue. Unearned revenue also includes the
amounts received from grant and contract sponsors that have not yet
been earned and amounts received from a tuition payment service for
payments received for the next fiscal year. These will be recorded as
revenue in the following fiscal year.
Pensions
For purposes of measuring the net pension liability or assets,
deferred outflows of resources and deferred inflows of resources related
to pensions, pension expense, and information about the fiduciary net
position of the Ohio Public Employees Retirement System (OPERS)
Traditional and Combined Plans as well as the State Teachers Retirement
System of Ohio (STRS Ohio) (collectively referred to as “the Plans”) and
additions to/deductions from the Plan’s fiduciary net position have been
determined on the same basis as they are reported by the Plans. For this
purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Investment income is recorded on the accrual basis and purchases
and sales of investments are recorded on a trade-date basis. Investment
transactions occurring on or before June 30 that settle after such date are
recorded as receivables or payables.
18
Attachment A
Overall Page 27 of 204
Attachment Page 20 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
Operating and Non-operating Revenue
The University defines operating activities, for purposes of reporting
on the Statement of Revenues, Expenses, and Changes in Net Position,
as those activities that generally result from exchange transactions such
as payments received for providing services and payments made for
services or goods received. Substantially all of the University’s expenses
are from exchange transactions. Certain significant revenue streams
relied upon for operations are recorded as non-operating revenues, as
defined by GASB Statement No. 35, including state appropriations, gifts,
and investment income.
Bond Premiums, Discounts and Issuance Costs
Bond premiums and discounts costs are deferred and amortized over
the life of the bonds using the straight line method. Bond issuance costs
are recognized as an expense in the period incurred.
Deferred Outflows/Inflows of Resources
Deferred outflows of resources are a consumption of net positions by
the University that is applicable to a future reporting period. Deferred
inflows of resources are an acquisition of net positions by the University
that is applicable to a future reporting period.
Compensated Absences
Full-time unclassified staff earn vacation at rates of 18 to 22 days per
year, based on the term of their employment contract, with a maximum
accrual of 52 days. Classified employees earn vacation at rates up to
25 days per year, based on years of service and hours reported, with a
maximum accrual equivalent to the amount earned in three years.
Upon retirement, termination, or death, the employee is compensated
at the final rate of pay for unused vacation up to a maximum of 40 days.
Faculty accrue no vacation benefits.
Full-time faculty, unclassified staff, and classified staff earn 15 days
of sick leave per year and individuals who work less than full-time earn
sick leave on a pro-rata basis. There is no limit on the number of sick
leave hours that can be accumulated. Upon retirement a staff member
with 10 or more years of Ohio public service is paid for one-fourth the
value of earned but unused sick leave not to exceed 30 days, based on
the employee’s rate of pay at the time of retirement. The termination
payment method is used to compute the liability for sick leave.
Employees transferring to or from another State of Ohio agency may
transfer any unused accumulated sick leave entitlement to/from the new
agency. Persons leaving employment for reasons other than retirement
are not compensated for unused sick leave.
Net positions
Net positions are divided into three major categories. The first
category, investment in capital assets, which does not include unspent
bond proceeds, reports the institution’s net equity in property, plant, and
equipment. The second major category is restricted net position.
This category contains assets that are owned by the institution, but
the use or purpose of the funds is restricted by an external source or
entity. The corpus of the nonexpendable restricted assets is available
for investment purposes only. The expendable restricted assets may be
expended by the institution, but must be spent only for the purpose as
determined by a donor or external entity. The income generated from
the nonexpendable restricted investments and the expendable restricted
funds may be used for student loans, scholarships and fellowships,
instruction, research, and other needs to support the operation of
the University. The third category is unrestricted net position and
is separated into two types: allocated and unallocated. Allocated
unrestricted assets are available to the institution, but are allocated for a
specific purpose within the institution by University policy, management,
or the governing board. The allocated unrestricted net assets were
$196,344,051 as of June 30, 2015. Unallocated unrestricted net assets
are available to be used for any lawful purpose of the institution.
Tax Status
The University is exempt from federal income taxes under Section
115 of the Internal Revenue Code. As such, the University is subject to
federal income taxes only on unrelated business income, if any, under
the provisions of Section 511 in the Internal Revenue Code.
Estimates
Management has made, where necessary, estimates and judgments
that affect certain amounts reported in the financial statements.
The estimates and judgments are based on current available information,
and actual results could differ from those estimates.
Subsequent Events
The University has evaluated events occurring between the end of
our most recent fiscal year and October 15, 2015, the date the financial
statements were issued.
19
Attachment A
Overall Page 28 of 204
Attachment Page 21 of 59
Attachment A
CONTINUED -
Financial Report 2015
Notes to Financial Statements
(2) Cash and Investments
The University’s cash and investment activities are governed by
policies adopted by the board in accordance with authority granted by
the Ohio Revised Code. Such policies are implemented by the treasurer
and overseen by the board’s finance and audit committee.
The University’s investment strategy incorporates financial
instruments that involve varying elements of risk including market risk,
credit risk, interest rate risk, and custodial credit risk. The University’s
investment policies and procedures establish risk guidelines for each
of the two primary investment pools, the non-endowment pool and
endowment pool. Diversification is a fundamental risk management
strategy for both pools.
Cash and Cash Equivalents
At year-end, the carrying amount of the University’s cash and cash
equivalents was approximately $100.3 million in 2015. Cash and cash
equivalents consists primarily of cash in banks, money market accounts
and the State Treasury Reserve of Ohio (STAR Ohio) that include
short-term, highly liquid investments readily convertible to cash, with
an original maturity of three months or less. STAR Ohio, a 2a7 – like
pooled fund, is a statewide fund managed by the State Treasurer of Ohio.
December 3, 2015
JUNE 30, 2015
Approximately $0.5 million of cash and cash equivalents was covered
by federal depository insurance; $53.6 million was covered by collateral
held by third-party trustees pursuant to paragraph 135.181 of the Ohio
Revised Code in collateral pools securing all public funds on deposit with
specific depository institutions; and the remainder was not collateralized
or insured, leaving it exposed to custodial credit risk. Custodial credit
risk is the risk that, in the event of the failure of a depository financial
institution, the University may not be able to recover its deposits or
collateral securities. The University maintains active relationships with
multiple cash equivalent accounts to reduce its exposure to custodial
credit risk at any single institution.
Investments
Investments held by the University at June 30, 2015 are presented
below, categorized by investment type and credit quality rating. Credit
quality ratings provide information about the investments’ credit risk,
which is the risk that an issuer or other counterparty to an investment
will not fulfill its obligations. The University’s investment management
procedures establish guidelines for average credit quality ratings in the
portfolios. Moody’s Investors Services and Fitch Ratings have assigned
AAA credit ratings to U.S. Treasury obligations. On August 6, 2011,
Standard & Poor’s lowered its credit rating on long-term U.S. Treasury
related debt obligations from AAA to AA+.
The investments as of June 30, 2015 are summarized as follows:
Investment Type Fair Value Not Rated
U.S. Treasury bonds $ 64,988,673 $
0
U.S. Agency bonds 98,755,662 0
Strips 2,666,342 0
Government-backed bonds 74,964,393 0
Corporate bonds 23,077,473 0
Municipal bonds 2,830,923 0
International bonds 492,562 0
Common and preferred stocks 575,736 575,736
Commingled funds 497,051,776 431,255,444
Real estate and other 310,879 310,879
Total investments $ 765,714,419 $ 432,142,059
AAA
$ 64,988,673
98,755,662
2,666,342
74,964,393
0
0
0
0
20,910,842
0
$ 262,285,912
AA, A and BBB
$
0
0
0
0
23,077,473
2,830,923
492,562
0
33,425,296
0
$ 59,826,254
Below BBB
0
0
0
0
0
0
0
0
11,460,194
0
$ 11,460,194
$
Due to significantly higher cash flows at certain times during the year, the amount of the University’s investment in each of the above investment
categories may be substantially higher during the year than at year-end.
The University’s bond investments are exposed to interest rate risk, which is the risk that changes in interest rates will adversely affect the fair value
of an investment. Interest rate risk is managed primarily by adjusting portfolio duration.
Bond investments by length of maturity as of June 30, 2015 are summarized as follows:
Less than
Investment Type
Fair Value
1 Year
1 to 5 Years
6 to 10 Years
U.S. Treasury bonds $ 64,988,673 $ 4,923,673
U.S. Agency bonds 98,755,662 34,885,707
Strips 2,666,342 0
Government-backed bonds 74,964,393 28,128
Corporate bonds 23,077,473 1,064,565
Municipal bonds 2,830,923 101,368
International bonds 492,562 0
Commingled bond funds 65,796,331 3,453,266
Total bonds $ 333,572,359 $ 44,456,707
$ 53,462,876
62,818,331
2,666,342
73,508,292
13,120,060
982,557
0
31,075,492
$ 237,633,950
$ 5,593,317
661,039
0
1,337,382
8,504,529
680,364
492,562
24,922,130
$ 42,191,323
More than
10 Years
$ 1,008,807
390,585
0
90,591
388,319
1,066,634
0
6,345,443
$ 9,290,379
20
Attachment A
Overall Page 29 of 204
Attachment Page 22 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
All of the University’s investments in publicly traded securities
are subject to market risk. As a result, a significant downturn in the
securities markets could adversely affect the market value of University
assets. Investments include approximately $151.0 million as of June 30,
2015, managed by global managers, and such international investments
are exposed to foreign currency risk. The University’s investments that
are exposed to concentration risk consist of securities issued by the U.S.
Treasury and other agencies or instrumentalities of the U.S. government
which represents 31.0% of investments. No other single issuer represents
more than 5% of investments. Commingled bond funds held by the
University include a wide range of investments, including hedge funds.
The University’s objective for investing in these hedge funds is to
provide stable, absolute returns that are uncorrelated to fluctuations in
the stock and bond markets.
Fair values were determined based on prices of established
securities markets, with the exception of some hedge funds and
alternative investments whose fair values were provided by the funds’
managements. Alternative investments generally represent investments
that are less liquid than publicly traded securities and include private
equity, investments in real assets, and other strategies. Hedge funds
may include, but are not limited to, long and short investments in
domestic and international equity securities, distressed securities, fixed
income securities, currencies, commodities, options, futures, and other
derivatives. Many of these securities are intended to reduce market risk,
credit risk, and interest rate risk.
Endowment Funds
The Miami University Foundation (Foundation) manages the
Foundation and University endowment and quasi-endowment funds in
a single investment pool (Pooled Fund). The University investment is
maintained as a separate fund on the financial system of the Foundation
and receives a proportionate share of the Pooled Fund’s activity.
The Foundation owns the assets of the Pooled Fund; the University
has an interest in the Pooled Fund, which is considered an external
investment pool to the University. The Foundation’s Pooled Fund is
not registered with the Securities and Exchange Commission as an
investment company. The Foundation’s Board of Directors appoints an
Investment Committee, which is responsible for oversight of the Pooled
Fund in accordance with Foundation policies. University investments
include $173.6 million managed by the Foundation as of June 30, 2015.
The fair value of the University’s position in the Pooled Fund is based on
the University’s proportional share of the Pooled Fund, which is markedto-market annually. Note 10 provides additional information on the
Foundation and the Pooled Fund.
The Uniform Prudent Management of Institutional Funds
Act (UPMIFA), as adopted by the State of Ohio provides statutory
guidelines for prudent management, investment, and expenditure of
donor-restricted endowment funds held by charitable organizations.
The University’s interpretation of its fiduciary responsibilities
for donor-restricted endowments under UPMIFA requirements,
barring the existence of any donor-specific provisions, is to preserve
intergenerational equity to the extent possible and to produce maximum
total return without assuming inappropriate risks. The investment
policies governing these funds look beyond short-term fluctuations in
economic cycles toward an investment philosophy that provides the best
total return over very long time periods.
The University employs a total return policy which defines the
total amount of dividends, interest and realized gains to be distributed
from the endowment assets. The University Board has approved an
endowment spending policy whereby distributions in accordance with
donor restrictions are calculated according to a formula which gives a
30% weight to market value and a 70% weight to inflation. Annually the
University establishes a spending formula that defines the total amount
of dividends, interest and realized gains to be distributed from the
endowment assets to other funds. The authorized spending amount was
$8,588,113 in 2015. In accordance with donors’ stipulations, a portion
of the earnings was returned to endowment principal and the balance of
$8,226,822 was distributed for expenditure for 2015. Donor restricted
endowments with insufficient accumulated earnings did not make a
current year distribution.
Business Insider ranks
Miami 31st among the “105
Smartest Public Colleges
in America.”
21
Attachment A
Overall Page 30 of 204
Attachment Page 23 of 59
Attachment A
CONTINUED -
Financial Report 2015
December 3, 2015
Notes to Financial Statements
JUNE 30, 2015
(3) Accounts, Pledges and Notes Receivable
The accounts, pledges and notes receivable as of June 30, 2015 are summarized as follows:
Accounts Receivable
Student receivables
University Foundation
State capital appropriations
Grants and contracts
Other receivables
Total accounts receivable
Less allowances for doubtful accounts
Net accounts receivable
$ 11,358,366
16,025,647
9,402,804
3,916,343
2,453,317
43,156,477
(1,285,000)
$ 41,871,477
Pledges Receivable
Pledges receivable
Less allowance for doubtful pledges
Net pledges receivable
$ 10,937,933
(564,167)
$ 10,373,766
Notes Receivable
Federal loan programs
University loan programs
Total notes receivable
Less allowance for doubtful notes
Net notes receivable
Total
$ 6,958,467
4,497,667
11,456,134
(1,866,000)
9,590,134
$ 61,835,377
(4) Capital Assets
The capital assets and accumulated depreciation as of June 30, 2015 are summarized as follows:
Beginning
Balance
$ 5,792,226
8,162,939
108,689,382
122,644,547
Additions
$
0
767,270
133,075,629
133,842,899
Retirements
$
0
0
124,373,480
124,373,480
Ending
Balance
$
5,792,226
8,930,209
117,391,531
132,113,966
Land improvements Buildings Infrastructure Machinery and equipment Library books and publications Vehicles Intangible assets Total depreciable capital assets Total capital assets 40,796,480
1,008,030,154
144,679,451
106,355,711
67,629,889
8,496,199
16,946,161
1,392,934,045
1,515,578,592
2,103,276
127,946,096
3,916,261
2,762,982
1,325,881
367,978
0
138,422,474
272,265,373
0
254,359
0
12,466,022
0
489,695
0
13,210,076
137,583,556
42,899,756
1,135,721,891
148,595,712
96,652,671
68,955,770
8,374,482
16,946,161
1,518,146,443
1,650,260,409
Less accumulated depreciation:
Buildings Infrastructure Land improvements Machinery and equipment Library books and publications Vehicles Intangible assets Total accumulated depreciation Total capital assets, net 380,487,155
59,208,614
13,940,005
51,101,848
44,381,095
6,664,130
16,149,778
571,932,625
$ 943,645,967
29,720,416
5,347,779
1,444,764
3,714,013
2,159,624
375,447
530,459
43,292,502
$ 228,972,871
217,386
0
0
12,466,022
0
489,695
0
13,173,103
$ 124,410,453
409,990,185
64,556,393
15,384,769
42,349,839
46,540,719
6,549,882
16,680,237
602,052,024
$ 1,048,208,385
Capital Assets Land Collections of works of art and historical treasures Construction in progress Total nondepreciable capital assets 22
Attachment A
Overall Page 31 of 204
Attachment Page 24 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
(5) Long-term Liabilities
The long-term liabilities as of June 30, 2015 are summarized as follows:
Bonds and Leases Payable Bonds payable Capital leases payable Premiums Total bonds and leases payable Beginning
Balance
Additions
$ 641,065,000 $
0
2,640,600 0
37,872,454 0
681,578,054 0
Reductions
$ 21,280,000
118,800
2,044,264
23,443,064
Ending
Balance
$ 619,785,000
2,521,800
35,828,190
658,134,990
Current
Portion
$ 25,195,000
118,800
2,044,264
27,358,064
Other Liabilities
Compensated absences Federal Perkins loans Total other liabilities Total 17,113,862 6,475,524 23,589,386 $ 705,167,440 8,038,438
268,411
8,306,849
$ 31,749,913
18,554,174
6,552,992
25,107,166
$ 683,242,156
1,492,386
0
1,492,386
$ 28,850,450
9,478,750
345,879
9,824,629
$ 9,824,629
Additional information regarding the bonds and capital leases is included in Note 6.
(6) Indebtedness
There was no new debt issued by the University in the year ended
June 30, 2015.
During the year ended June 30, 2014, the University issued
$135,035,000 in General Receipts Revenue Bonds with interest rates
ranging from 3.00 percent to 5.00 percent and maturities from 2015 to
2040. The proceeds are being used to provide continued funding for
the multi-phase effort to renovate all campus student housing and
dining facilities.
During the year ended June 30, 2013, the University issued
$116,065,000 in General Receipts Revenue Bonds with interest rates
ranging from 3.00 percent to 5.00 percent and maturities from 2015 to
2038. The proceeds are being used to provide continued funding for
the multi-phase effort to renovate all campus student housing and
dining facilities.
During the year ended June 30, 2012, the University issued
$148,775,000 in General Receipts Revenue Bonds with interest rates
ranging from 2.00 percent to 5.00 percent and maturities from 2012
to 2036. The proceeds are being used to provide continued funding for
the multi-phase effort to renovate all campus student housing and dining
facilities. A part of the proceeds were also used to refund a portion of the
remaining Miami University General Receipts Bonds, Series 2003.
The net change in cash flows related to the refunding was approximately $2.1
million and the net present value savings was approximately $1.6 million.
In fiscal year 2012, the University defeased a portion of the Series 2003
bonds by placing some of the proceeds from the Series 2011 bonds into
an escrow account to provide for all future debt service. The outstanding
balance of defeased bonds was $28,755,000 as of June 30, 2015.
The December 21, 2011 bond refunding resulted in a difference
between the net carrying amount of the old debt and the reacquisition
price of $1,209,192. The unamortized difference of $870,615 at June 30,
2015, is reported in the accompanying financial statements as a deferred
inflow of resources and is being amortized through the year 2024.
During the year ended June 30, 2011, the University issued
$125,000,000 in General Receipts Revenue Bonds consisting of
$105,445,000 Series 2010A (Federally Taxable Build America Bonds –
Direct Payment) and $19,555,000 Series 2010B (Tax-Exempt Bonds).
Interest rates range from 4.81 percent to 6.77 percent for the Series
2010A bonds and from 2.00 percent to 5.00 percent for the Series
2010B bonds. Maturities range from 2017 to 2035 for the Series 2010A
bonds and from 2011 to 2016 for the Series 2010B bonds. The Series
2010 bond proceeds were used to provide funding for the first phase of
planned improvements to student housing and dining facilities and the
first phase of construction of the Armstrong Student Center.
There was no new debt issued by the University in the years ended
June 30, 2010, 2009 or 2008.
During the year ended June 30, 2007, the University issued
$83,210,000 in General Receipts Revenue Bonds with interest rates
ranging from 3.25 percent to 5.25 percent and maturities from 2010 to
2026. The proceeds were used to fund capital asset additions.
During the year ended June 30, 2005, the University issued
$98,455,000 in General Receipts Revenue and Refunding Bonds with
interest rates ranging from 3.00 percent to 5.00 percent and maturities
from 2006 to 2025. The proceeds were used to refund a portion of the
remaining Miami University General Receipts Bonds, Series 1998 and for
the funding of additional capital assets. In 2005, the University defeased
a portion of the Series 1998 bonds by placing some of the proceeds
from the Series 2005 bonds into an escrow account to provide for all
future debt service. The outstanding balance of defeased bonds was
$6,880,000 as of June 30, 2015.
The March 1, 2005 bond refunding resulted in a difference between
the reacquisition price and the net carrying amount of the old debt of
$863,535. The unamortized difference of $214,575 at June 30, 2015, is
reported in the accompanying financial statements as a deferred outflow
of resources and is being amortized through the year 2019.
23
Attachment A
Overall Page 32 of 204
Attachment Page 25 of 59
Attachment A
Financial Report 2015
CONTINUED -
Notes to Financial Statements
The University incurred total interest costs of $28,305,013 as of June
30, 2015. The interest costs that were capitalized were $1,374,692 as of
June 30, 2015.
The maturity dates, interest rates, and outstanding principal balances
as of June 30, 2015 are as follows:
Maturity
InterestOutstanding
Dates Rates Debt
Bonds Payable
Series 2014 general receipts 2016 – 2040 3.00% - 5.00% $ 135,035,000
Series 2012 general receipts 2015 – 2038 3.00% - 5.00% 112,815,000
Series 2011 general receipts 2015 – 2037 2.00% - 5.00% 137,850,000
Series 2010A general receipts 2018 – 2036 4.81% - 6.77% 105,445,000
Series 2010B general receipts 2015 – 2017 2.00% - 5.00% 7,150,000
Series 2007 general receipts 2015 – 2027 3.25% - 5.25% 63,525,000
Series 2005 general receipts 2015 – 2025 3.63% – 5.00% 57,965,000
Total bonds payable 619,785,000
Bond premiums 35,828,190
Total bonds payable, net $ 655,613,190
The principal and interest payments for the bonds in future years are
as follows:
2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2041 Total PrincipalInterest Total
$ 25,195,000 $ 29,391,860 $ 54,586,860
26,295,000 28,325,210 54,620,210
27,345,000 27,161,998 54,506,998
29,310,000 25,854,918 55,164,918
29,755,000 24,471,727 54,226,727
164,775,000 98,656,324 263,431,324
116,225,000 62,825,377 179,050,377
121,155,000 42,643,982 163,798,982
79,730,000 5,803,050 85,533,050
$ 619,785,000 $ 345,134,446 $ 964,919,446
See Note 14 for details relating to borrowings and retirements of bond
obligations subsequent to year-end.
The University has $2,251,800 in capitalized lease obligations that
have varying maturity dates through 2032 and carry implicit interest
rates ranging from 2.65 percent to 6.38 percent. The scheduled
maturities of these leases as of June 30, 2015, are:
2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2032 Total minimum lease payments
Less amount representing interest Net minimum lease payments $ 194,020
194,586
194,768
194,583
194,091
969,872
962,842
384,038
3,288,800
(767,000)
$ 2,521,800
December 3, 2015
JUNE 30, 2015
(7) Net Pension Liability
For the year ended June 30, 2015, Miami University implemented
the provisions of GASB’s Statement No. 68, Accounting and Financial
Reporting for Pensions—an amendment of GASB Statement No. 27,
and GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date—an amendment of GASB
Statement No. 68. Among other changes, these Statements changed
the manner in which governments account for their proportionate
share of the net pension liability and deferred outflows of resources
relating to contributions made by government employers. As a result of
implementing these Statements, Miami University was required to restate
net position to the earliest period presented. The effect of the restatement
on net position is as follows:
2014
Net position as previously reported, June 30 $ 1,120,588,977
Adjustment for net pension liability and
deferred outflows of resources (281,300,663)
Net position as restated, June 30 $ 839,288,314
Substantially all non-student employees are covered by one of three
retirement plans. The University faculty is covered by the State Teachers
Retirement System of Ohio (STRS Ohio). Non-faculty employees are
covered by the Ohio Public Employees Retirement System of Ohio
(OPERS). Employees may opt out of STRS Ohio and OPERS and
participate in the Alternative Retirement Plan (ARP).
STRS Ohio and OPERS both offer three separate retirement
plans: the defined benefit plan, the defined contribution plan, and a
combined plan.
Defined Benefit Plans
Both STRS Ohio and OPERS are cost-sharing multiple-employer
defined benefit pension plans. Both plans provide retirement, disability,
postretirement health care coverage, and death benefits to plan members
and beneficiaries. Authority to establish and amend benefits is provided
by state statute.
STRS Ohio and OPERS issue stand-alone financial reports. Copies
of these reports may be obtained by writing to STRS, 275 East Broad
Street, Columbus, OH 43215-3771 or to OPERS, 277 East Town Street,
Columbus, OH 43215-4642.
Contribution rates for STRS Ohio are established by the State
Teachers Retirement Board, not to exceed statutory maximum rates
of 14 percent for members and 14 percent for employers. Contribution
rates for fiscal year 2014 were 11 percent for employees and 14 percent
for employers. For the fiscal years ended June 30, 2014, and June 30,
2013, the Retirement Board allocated employer contributions equal to 1.0
percent of covered payroll to post-employment health care (Note 9).
Buildings and computer equipment are financed with capital leases.
The carrying amount related to these capital leases as of June 30, 2015
are $2,611,440 for buildings.
24
Attachment A
Overall Page 33 of 204
Attachment Page 26 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
During calendar year 2014, employees covered by the OPERS
system were required by state statute to contribute 10.0 percent of
their salary to the plan. The University was required to contribute 14.0
percent of covered payroll. Law enforcement employees who are a part
of the OPERS law enforcement division contribute 13.0 percent of their
salary to the plan. For these employees, the University was required to
contribute 18.1 percent of covered payroll. Effective January 1, 2013,
the member contribution rate for law enforcement members increased
to 13.0 percent. The member contribution rate for all other employees
and the University’s contribution rate remained unchanged. The portion
of employer contributions to OPERS allocated to health care for
members in the Traditional Plan was 2.0 percent from January 1 through
December 31, 2014 (Note 9). Effective January 1, 2015, the portion of
employer contributions allocated to health care remained at 2.0 percent.
The payroll for employees covered by STRS Ohio for the year
ended June 30, 2015, was approximately $67,064,000. The payroll for
employees covered by OPERS for the year ended June 30, 2015, was
approximately $86,845,000.
Pension Liabilities, Pension Expense, and Deferred
Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2015, the University reported a liability of $254,748,534
for its proportionate share of the net pension liability for the OPERS
Traditional plan and the STRS Ohio plan, in the amounts of $79,877,382
and $174,871,152, respectively. The net pension liability was measured
as of December 31, 2014 for the OPERS traditional plan and June 30,
2014 for the STRS Ohio plan. The total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of
that date for each plan. The amount used to allocate the net pension
liability, deferred inflows/outflows and pension expense was based on the
contributions during the measurement period which was determined
by the OPERS Traditional plan and STRS Ohio plan to be a reliable
approximation of long term contribution effort to the two plans. At the
measurement date, the University’s proportion was 0.662272 percent for
OPERS Traditional and 0.71894026 percent for STRS Ohio.
At June 30, 2015, the University reported an asset of $250,519 for its
proportionate share of the net pension asset for the OPERS Combined
plan. The net pension asset was measured as of December 31, 2014.
The total pension liability used to calculate the net pension asset was
determined by an actuarial valuation as of that date. The amount used to
allocate the net pension liability, deferred inflows/outflows and pension
expense was based on the contributions during the measurement period
which was determined by the OPERS Combined plan and to be a
reliable approximation of long term contribution effort to the plan. At the
measurement date, the University’s proportion was 0.650661 percent for
OPERS Combined plan.
For the year ended June 30, 2015, the University recognized net
negative pension expense of $5,145,797 consisting of negative pension
expenses of $4,389,877 for the OPERS Traditional plan, $637,869
for the STRS Ohio plan and $118,051 for the OPERS Combined
plan, respectively.
At June 30, 2015, the University reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Differences between expected and actual actuarial experience –
OPERS Traditional and Combined
Deferred Outflows of Resources Deferred
Inflows of
Resources
$
0
$ 1,479,732
Differences between expected and actual actuarial experience –
STRS Ohio
1,683,515
0
Net difference between projected and actual earnings on pension
plan investments – OPERS Traditional and Combined
4,277,306
0
Net difference between projected and actual earnings on pension
plan investments – STRS Ohio
0
32,351,826
Changes in proportion and differences between University
contributions and proportionate share of contributions – OPERS
Traditional and Combined
783
7,414,463
University contributions subsequent to the measurement date –
OPERS Traditional and Combined
4,910,727
0
University contributions subsequent to the measurement date –
STRS Ohio
Total
8,716,756
0
$ 19,589,087
$ 41,246,021
25
Attachment A
Overall Page 34 of 204
Attachment Page 27 of 59
Attachment A
CONTINUED -
Financial Report 2015
Notes to Financial Statements
December 3, 2015
JUNE 30, 2015
Deferred outflows of resources includes $13,627,483 of University contributions subsequent to the measurement dates of the Plans and will be
recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016 2017 2018 2019 2020 Thereafter STRS OPERS OPERS
OhioTraditionalCombined
$ (7,667,078)
(7,667,078)
(7,667,078)
(7,667,078)
0
0
$ 418,022
418,022
957,181
1,065,504
0
0
$ (5,269)
(5,269)
(5,269)
(5,269)
(5,269)
(30,985)
Total
$ (7,254,325)
(7,254,325)
(6,715,166)
(6,606,843)
(5,269)
(30,985)
Actuarial assumptions – STRS Ohio
The total pension liability in the June 30, 2014, actuarial valuation was determined using the following actuarial assumptions, applied to all periods
included in the measurement:
Inflation
Projected salary increases
Investment rate of return
Cost-of-living adjustments (COLA)
2.75 percent
12.25 percent at age 20 to 2.75 percent at age 70
7.75 percent, net of investment expenses
2 percent simple applied as follows: for members retiring before
August 1, 2013, 2 percent per year; for members retiring August 1, 2013,
or later, 2 percent COLA paid on fifth anniversary of retirement date.
Mortality Rates
Rates were based on the RP-2000 Combined Mortality Table
(Projection 2022—Scale AA) for Males and Females. Males’ ages are
set-back two years through age 89 and no set-back for age 90 and above.
Females younger than age 80 are set back four years, one year set back
from age 80 through 89 and not set back from age 90 and above.
Experience Studies
Actuarial assumptions used in the June 30, 2014, valuation are based
on the results of an actuarial experience study, effective July 1, 2012.
Investment Return Assumptions
The 10 year expected real rate of return on pension plan investments
was determined by STRS Ohio’s investment consultant by developing
best estimates of expected future real rates of return for each major asset
class. The target allocation and long term expected real rate of return for
each major asset class are summarized as follows:
Discount Rate
The discount rate used to measure the total pension liability
was 7.75 percent as of June 30, 2014. The projection of cash flows
used to determine the discount rate assumes member and employer
contributions will be made at the statutory contribution rates in
accordance with rate increases described above. For this purpose, only
employer contributions that are intended to fund benefits of current
plan members and their beneficiaries are included. Projected employer
contributions that are intended to fund the service costs of future plan
members and their beneficiaries, as well as projected contributions from
future plan members, are not included. Based on those assumptions,
STRS’ fiduciary net position was projected to be available to make all
projected future benefit payments to current plan members as of June
30, 2014. Therefore, the long-term expected rate of return on
pension plan investments of 7.75 percent was applied to all periods of
projected benefit payment to determine the total pension liability as of
June 30, 2014.
Long-Term
Pension Plan Fiduciary Net Position – STRS Ohio
Target Expected Real
STRS issues a stand-alone financial report that includes financial
Allocation Rate of Return
statements, required supplementary information and detailed
31.00 % 8.00 %
26.00 7.85
information about STRS’ fiduciary net position. That report can
14.00 8.00
be obtained by writing to STRS, 275 E. Broad St., Columbus,
18.00 3.75
OH 43215-3771, by calling (888) 227-7877, or by visiting the STRS
10.00 6.75
web site at www.strsoh.org.
1.00 3.00
Asset Class Domestic Equity International Equity Alternatives Fixed Income Real Estate Liquidity Reserves Total 100.00 %
26
Attachment A
Overall Page 35 of 204
Attachment Page 28 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
Actuarial assumptions – OPERS Traditional and
Combined Plans
Actuarial valuations of an ongoing plan involve estimates of the value
of reported amounts and assumptions about the probability of
the occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and cost trends.
Actuarially determined amounts are subject to continual review or
modification as actual results are compared with past expectations and
new estimates are made about the future.
Projections of benefits for financial reporting purposes are based
on the substantive plan (the plan as understood by the employers and
plan members) and include the types of benefits provided at the time
of each valuation. The total pension liability was determined by an
actuarial valuation as of December 31, 2014, using the following actuarial
assumptions applied to all prior periods included in the measurement
in accordance with the requirements of GASB 67. Key methods and
assumptions used in the latest actuarial valuations are presented below.
Valuation date Experience study Actuarial cost method Investment rate of return Wage inflation Projected salary increases Cost of living adjustments December 31, 2014
5 year period ended December 31, 2010
Individual entry age
8.00%
3.75%
4.25% - 10.05% (includes wage
inflation at 3.75%)
3.00% simple
Mortality Rates
Mortality rates are the RP-2000 mortality table projected 20 years
using Projection Scale AA. For males, 105% of the combined healthy
male mortality rates were used. For females, 100% of the combined
healthy female mortality rates were used. The mortality rates used in
evaluating disability allowances were based on the RP-2000 mortality
table with no projections. For males, 120% of the disabled female
mortality rates were used, set forward two years. For females, 100% of
the disabled female mortality rates were used. The discount rate used
to measure the total pension liability was 8.0% for both the Traditional
Pension Plan and the Combined Plan. The projection of cash flows
used to determine the discount rate assumed that contributions from
plan members and those of the contributing employers are made at the
statutorily required rates. Based on those assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the longterm expected rate of return on pension plan investments for both the
Traditional Pension Plan and the Combined Plan was applied
to all periods of projected benefit payments to determine the total
pension liability.
Investment Return Assumptions
The allocation of investment assets within the Defined Benefit
portfolio is approved by the Board as outline in the annual investment
plan. Plan assets are managed on a total return basis with a long-term
objective of achieving and maintaining a fully funded status for
the benefits provided through the defined benefit pension plans.
The following table displays the Board-approved asset allocation policy
for 2014 and the long-term expected real rates of return.
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Fixed income 23.00 % 23.31 %
Domestic equities 19.90 5.84
Real estate 10.00 4.25
Private equity 10.00 9.25
International equities 19.10 7.40
Other investments 18.00 4.59
Total 100.00 %
The long term expected rate of return on defined benefit investment
assets was determined using a building-block method in which bestestimate ranges of expected future real rates of return are developed for
each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage, adjusted for inflation.
OPERS manages investments in four investment portfolios: the Defined
Benefit portfolio, the Health Care portfolio, the 115 Health Care Trust
portfolio and the Defined Contribution portfolio. The Defined Benefit
portfolio includes the investment assets of the Traditional Pension Plan,
the defined benefit component of the Combined Plan, the annuitized
accounts of the Member-Directed Plan, and the VEBA Plan. Within the
Defined Benefit portfolio, contributions into the plans are all recorded at
the same time, and benefit payments all occur on the first of the month.
Accordingly, the money-weighted rate of return is considered to be the
same for all plans within the portfolio.
Pension Plan Fiduciary Net Position – OPERS
Traditional and Combined
Detailed information about the pension plan’s fiduciary net position
is available in the separately issued OPERS financial report; Additional
information supporting the preparation of the Schedules of Collective
Pension Amounts and Employer Allocations (including the disclosure
of the net pension liability/(asset), required supplementary information
on the net pension liability/(asset), and the unmodified audit opinion on
the combined financial statements) is located in OPERS 2014 CAFR.
This CAFR is available at www.opers.org or by contacting OPERS at:
OPERS, 277 East Town Street, Columbus, Ohio 43215-4642 or by
calling (800) 222-7377.
27
Attachment A
Overall Page 36 of 204
Attachment Page 29 of 59
Attachment A
CONTINUED -
Financial Report 2015
Notes to Financial Statements
December 3, 2015
JUNE 30, 2015
Sensitivity of the University’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following table presents the University’s proportionate share of the net pension liability calculated using the current period discount rate
assumption, as well as what the University’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is
one-percentage-point lower or one-percentage-point higher than the current rate:
University’s
Proportionate
Share
STRS Ohio
OPERS - Traditional
OPERS - Combined
0.72%
0.66%
0.65%
Current Period Discount Rate Assumption STRS Ohio OPERS - Traditional OPERS - Combined 7.75% 8.00%
8.00% $ 174,871,152 79,877,382 (250,519) $ 254,498,015
(8) Retirement Plans
Defined contribution plan: Full-time faculty and unclassified
employees are eligible to participate in the Alternative Retirement Plan
(ARP) offered by STRS Ohio and OPERS. The board has established
the employer contribution as an amount equal to the amount which the
University would have contributed to the respective state retirement
system in which the employee would participate, less any amounts
required to be remitted to the state retirement systems. ARP does
not provide disability benefits, annual cost-of-living adjustments,
postretirement health care benefits, or death benefits to plan members
and beneficiaries.
The payroll for employees electing the alternative retirement program
for the year ended June 30, 2015 was approximately $63,346,000.
Combined plans: STRS Ohio offers a combined plan with features
of both a defined contribution plan and a defined benefit plan. In the
combined plan, employee contributions are invested in self-directed
investments, and the employer contribution is used to fund a reduced
defined benefit. Employees electing the combined plan receive
postretirement health care benefits.
OPERS also offers a combined plan. This is a cost-sharing, multipleemployer defined benefit plan that has elements of both a defined
benefit and defined contribution plan. In the combined plan, employee
contributions are invested in self-directed investments, and the employer
contribution is used to fund a reduced defined benefit. OPERS also
provides retirement, disability, survivor, and postretirement health care
benefits to qualified members. The portion of employer contributions to
OPERS allocated to health care for members in the Combined Plan was
2.0 percent from January 1 through December 31, 2014 and remained at
2.0 percent effective January 1, 2015 (Note 9).
Net Pension Liability Calculated
One-Percentage Point Lower Assumption 6.75%
7.00%
7.00%
$
250,347
146,951,492
32,533
$ 147,234,372
One-Percentage
Point Higer
Assumption
8.75%
9.00%
9.00%
$ 111,043,882
23,384,818
(474,983)
$ 133,953,717
Retirement plan funding: The Ohio Revised Code provides statutory
authority for employee and employer contributions. The University’s
contributions each year are equal to its required contributions.
University contributions for the current and two preceding years are
summarized below.
Employer Contribution
Alternative
STRS Ohio OPERS Programs
2015 $ 9,388,961 $ 12,227,238 $ 6,861,634
2014 8,850,145 12,333,960 6,330,661
2013 8,718,108 11,981,743 6,283,457
(9) Other Postemployment Benefits
In addition to the pension benefits described in Note 8, STRS Ohio
and OPERS provide postretirement health care coverage to retirees
and their dependents. Health care coverage for disability recipients
and primary survivor recipients is also provided. Coverage includes
hospitalization, physicians’ fees, prescription drugs, and partial
reimbursement of monthly Medicare premiums. A portion of the
employer contribution is allocated to fund the health care benefits
(Note 8).
OPERS health care benefits are advance-funded on an actuarially
determined basis. The amount of employer contributions made to
fund post-employment benefits for the year ended June 30, 2015 ,
were approximately $1,746,000.
28
Attachment A
Overall Page 37 of 204
Attachment Page 30 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
(10) Related Organization
The Miami University Foundation (the Foundation) is a separate not-for-profit entity organized for the purpose of promoting educational and
research activities of the University. Since the resources held by the Foundation can be used only by and for the benefit of the University, the Foundation
is considered a component unit of the University and is discretely presented in the University’s financial statements.
The Foundation board is comprised of at least fifteen directors that are elected by the Board and seven directors that are appointed by Miami
University. At least two-thirds of the elected directors are required to be alumni or former students of Miami University. The Foundation issues reports
using standards issued by the Financial Accounting Standards Board.
Amounts received by the University from the Foundation are restricted and are included in gifts in the accompanying financial statements.
The Foundation values its investments at fair value.
Summary financial information for the Foundation as of June 30, 2015, the date of its most recent audited financial report, is as follows:
Net assets at end of year Change in net assets for the year Distributions to Miami University Cash and Cash Equivalents
Cash and cash equivalents consists primarily of cash in banks,
money market accounts, BlackRock Liquidity Federal Trust Fund, and
the State Treasury Asset Reserve of Ohio (STAR Ohio and STAR Plus)
that include short-term, highly liquid investments readily convertible to
cash, with an original maturity of three months or less. The Foundation
maintains active relationships with multiple cash equivalent accounts to
reduce its exposure to custodial credit risk at any single institution. The
carrying amounts of these items are a reasonable estimate of their fair
value.
Investments
Investments that are market traded, such as equity and debt securities
and mutual funds, are recorded at fair value based primarily on quoted
market prices, as established by the major securities markets. The value
of holdings of commingled funds investing in publicly traded stocks
and bonds that do not have a readily determined market value for fund
units is based on the funds’ net asset value as supplied by the investment
manager’s administrator. The values are reviewed and evaluated by
Foundation management. Investments in real estate are recorded
at appraised value at the date of donation. The issuing insurance
companies determine the cash surrender value of the life insurance
policies annually.
Market prices are not available for certain investments.
These investments are carried at estimated fair value provided by the
funds’ management. Some valuations are determined as of June 30,
while the remaining valuations are determined based on March 31
information when June 30 information is not yet available, and adjusted
by cash receipts, cash disbursements, and securities distributions
through June 30. The Foundation believes that the carrying amounts
are reasonable estimates of fair value as of year-end. Because these
investments are not readily marketable, the estimated value is subject
to uncertainty and, therefore, may differ from the value that would have
Unrestricted Temporarily Restricted $ 716,307
(309,467)
25,407,833
$ 133,829,531
(5,852,823)
0
Permanently
Restricted $ 187,600,989
11,854,564
0
Total
$ 322,146,827
5,692,274
25,407,833
been used had a ready market for the investments existed.
Such differences could be material. The amount of gain or loss associated
with these investments is reflected in the accompanying financial
statements using the equity method of accounting.
All donor-restricted endowment investments and unrestricted
board-designated endowments are managed in a unitized investment
pool (Pooled Funds), unless donor-restricted endowment gift agreements
require that they be held separately. For the Pooled Funds, the fair value
of the investments is determined at the end of each quarter and the
incremental fair value increase or decrease is allocated to the individual
fund accounts based on the number of shares the fund owns at the
beginning of the quarter.
Investment income is recorded on the accrual basis and purchases
and sales of investments are recorded on a trade-date basis. Investment
transactions occurring on or before June 30, which settle after such
date, are recorded as receivables or payables. Net dividend and interest
income as well as gains/losses are allocated based on the number of
shares owned.
Long-term Investments
Investments held by the Foundation as of June 30, 2015 were:
Investment Description Domestic public equities Global public equities International public equities Domestic public fixed income Global public fixed income Hedge funds Limited partnerships and non-public equities Split-Interest Funds
Charitable remainder trusts Charitable gift annuities Pooled income funds Total Fair Value
$ 31,122,745
136,020,546
10,257,373
2,490,323
26,807,206
143,933,946
79,309,360
10,154,938
3,275,443
552,028
$ 443,923,908
29
Attachment A
Overall Page 38 of 204
Attachment Page 31 of 59
Attachment A
CONTINUED -
Financial Report 2015
Notes to Financial Statements
The Foundation maintains a diversified investment portfolio for
the Pooled Funds, intended to reduce market risk, credit risk, and
interest rate risk with a strategy designed to take advantage of market
inefficiencies. The Foundation’s investment objectives are guided by
its asset allocation policy and are achieved in partnership with external
investment managers operating through a variety of investment vehicles
including separate accounts, limited partnerships, and commingled
funds. The Foundation’s investment portfolio includes publicly traded
securities. As a result, a significant downturn in the securities markets
could adversely affect the market value of Foundation assets. As of
June 30, 2015, the Foundation has made commitments to limited
partnerships of approximately $21.1 million that have not yet been
funded, some of which management expects may not be called by the
partnerships due to the life-cycle of the partnership.
The 2015 dividend and interest income of $2,435,996, as reported
in the Statement of Activities, is net of fees from external investment
managers totaling $345,225.
Fair Value Measurements
The Foundation uses fair value measurements to record fair value
adjustments to certain assets and liabilities and to determine fair
value disclosures. Subsequent changes in fair value are recorded as an
adjustment to earnings.
Pledges Receivable
As of June 30, 2015, contributors to the Foundation have made
unconditional pledges totaling $43,411,061 with 17 pledges accounting
for over 50 percent of that total. Net pledges receivable have been
discounted using interest rates to a net present value of $40,948,848
at June 30, 2015. Discount rates ranged from 1.20 percent to 6.00
percent. Management has set up an allowance for uncollectible pledges
of $1,198,980 at June 30, 2015. All pledges have been classified as
temporarily restricted net assets since they will either expire or be
fulfilled within a specified time or donor imposed stipulations.
The Foundation had also been notified of revocable pledges,
bequests, and other indications of intentions to give. These potential
contributions are not permitted to be recorded as they are deemed
intentions to give and not promises to give.
Split-interest Agreements
The Foundation’s split-interest agreements with donors consist
primarily of charitable gift annuities, pooled income funds and
irrevocable charitable remainder trusts for which the Foundation serves
as trustee. Assets are invested and payments are made to donors and/
or other beneficiaries in accordance with the respective agreements.
Assets held for these agreements are included in investments.
Endowment
UPMIFA provides statutory guidelines for prudent management,
investment, and expenditure of donor-restricted endowment funds held
by charitable organizations.
December 3, 2015
JUNE 30, 2015
The Foundation’s interpretation of its fiduciary responsibilities
for donor-restricted endowments under UPMIFA requirements,
barring the existence of any donor-specific provisions, is to preserve
intergenerational equity to the extent possible and to produce maximum
total return without assuming inappropriate risks. The investment
policies governing these funds look beyond short-term fluctuations in
economic cycles toward an investment philosophy that provides the best
total return over very long time periods.
UPMIFA specifies that unless stated otherwise in the gift agreement,
donor-restricted assets in an endowment fund are restricted assets until
appropriated for expenditure by the institution. Barring the existence
of specific donor instruction, the Foundation’s policy is to report (a)
the historical value for such endowment as permanently restricted net
assets and (b) the net accumulated appreciation as temporarily restricted
net assets. In this context, historical value represents (a) the original
value of initial gifts restricted as permanent endowments plus (b) the
original value of subsequent gifts along with (c) if applicable, the value of
accumulations made in accordance with specific donor instruction.
From time to time, the fair value of assets associated with donorrestricted endowment funds may fall below the level that the donor
or UPMIFA requires the Foundation to retain as a fund of perpetual
duration. In accordance with GAAP, deficiencies of this nature are
reported as unrestricted net assets until such time as the fair value equals
or exceeds historical value; such deficiencies were $47,736 as
of June 30, 2015. These deficiencies resulted from unfavorable
market fluctuations that occurred after the investment of permanently
restricted contributions.
Net Asset Classification
Resources of the Foundation are classified for reporting purposes into
net asset classes based on the existence or absence of donor-imposed
restrictions and state law. Unrestricted net assets represent the portion
of funds over which the Foundation has discretionary control as there
are no donor-imposed purposes or time restrictions on how the funds
may be spent. Temporarily restricted net assets are limited as to use by
donor-imposed stipulations that expire with the passage of time or the
incurrence of expenditures that fulfill the donor-imposed restrictions.
These net assets are primarily restricted for student pledges, splitinterest agreements, and board-designated endowment funds; such
funds are primarily restricted for student financial aid, educational
and research activities, and capital improvements for the University.
Expirations of restrictions on net assets, i.e., the passage of time and/or
fulfilling donor-imposed stipulations, are reported as net assets released
from restrictions between the applicable classes of net assets in the
statement of activities. Permanently restricted net assets, or endowment
funds, represent amounts received from donors with the restriction that
the principal is invested in perpetuity. Generally, the donors of these
assets permit the Foundation to transfer a portion of the income earned
on related investments to the University for such purpose as specified by
the donor.
The Foundation issues separate financial statements. Copies of these
reports may be obtained from Treasury Services, 107 Roudebush Hall,
Miami University, Oxford, Ohio, 45056.
30
Attachment A
Overall Page 39 of 204
Attachment Page 32 of 59
Attachment A
Financial Report 2015
December 3, 2015
MIAMI UNIVERSITY
(11) Commitments
At June 30, 2015, the University is committed to future contractual
obligations for capital expenditures of approximately $124 million.
These commitments are being funded from the following sources:
Contractual Obligations
Approved state appropriations not expended University funds and bond proceeds Total $ 17,077,851
106,949,238
$ 124,027,089
(12) Risk Management
The University’s employee health insurance program is a self-insured
plan. Administration of the plan is provided by Humana Inc. through
December 31, 2014 (with a run-out period extending through December
31, 2015). United Medical Resources, a United Healthcare company,
began administration of the plan January 1, 2015. Employees are offered
two plan options, a Traditional PPO Plan or a High Deductible Health
Plan with a Health Savings Account.
Health insurance claims are accrued based upon estimates of the
claims liabilities. These estimates are based on past experience, current
claims outstanding, and medical inflation trends. As a result, the actual
claims experience may differ from the estimate. An estimate of claims
incurred but not reported in the amount of $2,056,600 is included in
the accrued salaries and wages as of June 30, 2015. The change in the
total liability for actual and estimated claims is summarized below:
Liability at beginning of year Claims incurred Claims paid Decrease in estimated claims
incurred but not reported Liability at end of year $ 2,440,852
27,109,201
(26,834,919)
(52,500)
$ 2,662,634
To reduce potential loss exposure, the University has established a
reserve for health insurance stabilization of $15.0 million.
The University participates in a consortium with all other Ohio
state-assisted universities (excluding The Ohio State University) for the
acquisition of commercial property and liability insurance. The name
of the consortium is the IUC-Insurance Consortium. The commercial
property program’s loss limit is $1.0 billion and the general/auto liability
loss limit is $50 million. The property insurance program has been
in place for 20 years during which time Miami University has had one
material loss above the insurance policy deductible of $350,000.
The property pool deductible for individual universities is $100,000.
The liability program has been in place for 15 years during which time
Miami University has had three losses above the pool deductible.
The current self-insured retention for the liability program is $10 million.
The educator’s legal liability loss limit is $25 million. The University also
participates with the other consortium universities for the purchase of
commercial insurance for other risks. Over the past six years, settlement
amounts related to insured risks have not exceeded the University’s
coverage amounts.
(13) Contingencies
The University receives grants and contracts from certain federal,
state, and local agencies to fund research and other activities. The costs,
both direct and indirect, that have been charged to the grants or contracts
are subject to examination and approval by the granting agency. It is the
opinion of the University’s administration that any disallowance or
adjustment of such costs would not have a material effect on the financial
statements.
The University is presently involved as a defendant or codefendant in
various matters of litigation. The University’s administration believes that
the ultimate disposition of any of these matters would not have a material
adverse effect upon the financial condition of the University.
(14) Subsequent Events
On July 30, 2015, Miami University issued $52,335,000 of Series
2015 General Receipts and Refunding Bonds through a direct bank
purchase process. The bonds carry a 1.88% coupon and mature between
9/1/2016 – 9/1/2024. All of the proceeds of the Series 2015 Bonds will
be used to refund the Miami University Series 2005 General Receipts
and Refunding Bonds.
On September 1, 2015, Miami University called all outstanding Series
2005 General receipts and Refunding Bonds at par. Par value of the
called bonds was $52,220,000.
For six years in a row, U.S.
News & World Report has
ranked Miami among the
top five universities
nationally for best teaching
of undergraduates. In the
most recent report, Miami
ranks in the top two among
public universities, just
after William and Mary.
31
Attachment A
Overall Page 40 of 204
Attachment Page 33 of 59
Attachment A
Financial Report 2015
December 3, 2015
Supplementary Information JUNE 30, 2015
MIAMI UNIVERSITY
STRS Ohio
OPERS
Traditional
OPERS
Combined
0.72% 0.66%
0.65%
$ 174,871,152 $ 79,877,382
$ (250,519)
67,064,006 80,131,382
2,327,431
260.76% 99.68%
10.76%
74.70% 86.45%
114.83%
Retirement Plan Data Year Ended June 30, 2015:
University’s proportion of the net pension liability (asset)
University’s proportionate share of the net pension liability
(asset)
University’s covered-employee payroll
University’s proportionate share of the net pension liability
(asset) as a percentage of its covered-employee payroll
Plan fiduciary net position as a percentage of the total
pension liability
STRS Ohio
Retirement Plan Data Contractually Year Ended June 30, 2015 Required (In Thousands)
Contribution 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 9,539 9,597 9,478 9,587 9,271 9,062 8,825 8,718 8,850 9,389 Contributions in
Relation to the
Contractually
Required Contribution
$ 9,539
9,597
9,478
9,587
9,271
9,062
8,825
8,718
8,850
9,389
Contribution
Deficiency (Excess)
$0
0
0
0
0
0
0
0
0
0
University’s
Covered- Employee Payroll
$ 68,135
68,552
67,702
68,482
66,222
64,727
63,038
62,272
63,215
67,064
Contributions as
a Percentage of
CoveredEmployee Payroll
14.0%
14.0%
14.0%
14.0%
14.0%
14.0%
14.0%
14.0%
14.0%
14.0%
OPERS Traditional and Combined
Retirement Plan Data
Contractually Year Ended June 30, 2015
Required (In Thousands)
Contribution 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 11,303 11,882 13,004 13,480 12,304 11,842 11,863 11,982 12,334 12,227 Contributions in
Relation to the
Contractually
Required Contribution
$ 11,303
11,882
13,004
13,480
12,304
11,842
11,863
11,982
12,334
12,227
Contribution
Deficiency (Excess)
$0
0
0
0
0
0
0
0
0
0
University’s
Covered- Employee Payroll
$ 86,551
86,585
93,251
95,880
87,443
84,585
84,266
85,101
87,598
86,845
Contributions as
a Percentage of
CoveredEmployee Payroll
13.1%
13.7%
13.9%
14.1%
14.1%
14.0%
14.1%
14.1%
14.1%
14.1%
32
Attachment A
Overall Page 41 of 204
Attachment Page 34 of 59
Attachment A
Trustees and Officers as of JUNE 30, 2015
Miami University Board of Trustees
Administrative Officers
Date listed is expiration of term.
David C. Hodge
President
David Budig, Chair
February 28, 2022
Mark Ridenour, Vice Chair
February 28, 2020
Dennis A. Lieberman, Secretary
February 28, 2018
Jagdish K. Bhati, Treasurer
February 28, 2019
Sharon J. Mitchell
February 28, 2016
Robert W. Shroder
February 28, 2021
Stephen P. Wilson
February 28, 2023
National Trustees (non-voting)
Phyllis Callahan
Provost and Executive Vice President
for Academic Affairs
David K. Creamer
Sr. Vice President for Finance and Business
Services/Treasurer
Michael Kabbaz
Vice President for Enrollment Management
and Student Success
J. Peter Natale
Vice President for Information Technology
Jayne Brownell
Vice President for Student Affairs
Tom Herbert
Vice President for University Advancement
Robin Parker
General Counsel
Terry Hershey
June 30, 2016
Ted Pickerill
Secretary, Board of Trustees and Executive Assistant
to the President
Diane F. Perlmutter
June 30, 2017
C. Michael Gooden
June 30, 2018
Student Trustees (non-voting)
Mary Adeline Lewis
February 28, 2016
Ciara R. Lawson
February 28, 2017
December 3, 2015
MIAMI UNIVERSITY
John Altman
June 30, 2016
Robert E. Coletti
June 30, 2017
Financial Report 2015
Financial Services Staff
The 2015 financial report and investments report were
prepared by the Miami University Controller’s Office and
the Treasury Services Office.
Sarah C. Persinger
Controller
Jennifer B. Morrison
Assistant Controller
Bruce A. Guiot
Chief Investment Officer and Associate Treasurer
Cynthia L. Ripberger
Senior Associate Director of Investments and
Treasury Services
Statement of Nondiscrimination
Miami University is committed to providing equal opportunity and an educational and work environment free from discrimination on the basis of sex, race, color, religion,
national origin, disability, age, sexual orientation, gender identity, military status, or veteran status. Miami shall adhere to all applicable state and federal equal opportunity/
affirmative action statutes and regulations.
The university is dedicated to ensuring access and equal opportunity in its educational programs, related activities, and employment. Retaliation against an individual who
has raised claims of illegal discrimination or cooperated with an investigation of such claims is prohibited.
Students and employees should bring questions or concerns to the attention of the Office of Equity and Equal Opportunity, Hanna House, 529-7157 (V/TTY) and
529-7158 (fax). Students and employees with disabilities may contact the Office of Disability Resources, 19 Campus Avenue Building, 529-1541 (V/TTY) and 529-8595 (fax).
EthicsPoint
EthicsPoint is an anonymous method for reporting illegal, unethical, or other conduct that violates Miami’s policies. Miami (along with many other universities) has contracted
with EthicsPoint to provide this service. Reports may be filed at www.EthicsPoint.com
Attachment A
2015 Miami Fncl Rprt Cvr_FNL.indd 3-4
Overall Page 42 of 204
Attachment Page 35 of 59
11/16/15 10:22 AM
Attachment A
Financial Report 2015
December 3, 2015
Financial Report
2015
Miami University: Equal opportunity in education and employment.
Produced by University Communications and Marketing 0.3K1215
Attachment A
2015 Miami Fncl Rprt Cvr_FNL.indd 1-2
Overall Page 43 of 204
Attachment Page 36 of 59
11/16/15 10:22 AM
Attachment A
Auditor's Report
December 3, 2015
Miami University
Report to the Finance and Audit Committee
October 15, 2015
Attachment A
Overall Page 44 of 204
Attachment Page 37 of 59
Attachment A
Auditor's Report
December 3, 2015
October 15, 2015
Finance and Audit Committee
Miami University
Oxford, Ohio
We are pleased to present this report related to our audit of the financial statements of Miami University
(the University) for the year ended June 30, 2015. This report summarizes certain matters required by
professional standards to be communicated to you in your oversight responsibility for Miami University’s
financial reporting process.
This report is intended solely for the information and use of the Finance and Audit Committee and
management and is not intended to be, and should not be, used by anyone other than these specified
parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the
opportunity to continue to be of service to Miami University.
Attachment A
Overall Page 45 of 204
Attachment Page 38 of 59
Attachment A
Auditor's Report
December 3, 2015
Contents
Required Communications
1-2
Summary of Significant Accounting Estimates
3-4
Exhibit A—Significant Written Communications Between Management and Our Firm
Representation Letter
Attachment A
Overall Page 46 of 204
Attachment Page 39 of 59
Attachment A
Auditor's Report
December 3, 2015
Required Communications
Generally accepted auditing standards (AU-C 260, The Auditor’s Communication With Those Charged
With Governance) require the auditor to promote effective two-way communication between the auditor
and those charged with governance. Consistent with this requirement, the following summarizes our
responsibilities regarding the financial statement audit as well as observations arising from our audit that
are significant and relevant to your responsibility to oversee the financial reporting process.
Area
Comments
Our Responsibilities With
Regard to the Financial
Statement Audit
Our responsibilities under auditing standards generally accepted in
the United States of America and Government Auditing Standards,
issued by the Comptroller General of the United States, have been
described to you in our arrangement letter dated April 30, 2015. Our
audit of the financial statements does not relieve management or
those charged with governance of their responsibilities which are also
described in that letter.
Overview of the Planned
Scope and Timing of the
Financial Statement Audit
We have issued a separate communication regarding the planned
scope and timing of our audit and have discussed with you our
identification of and planned audit response to significant risks of
material misstatement during our meeting on April 30, 2015.
Accounting Policies and
Practices
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of
the accounting policies used by the University. In the current year, the
University adopted Government Accounting Standards Board (GASB)
Statement No. 68, Accounting and Financial Reporting for Pensions—
an amendment of GASB Statement No. 27. The adoption of GASB
No. 68 improves accounting and financial reporting by state and local
governments for pensions. It also improves information provided by
state and local governmental employers about financial support for
pensions that is provided by other entities. The University also
adopted GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date – an
amendment of GASB Statement No. 68. The objective of this
Statement is address contributions made by a state or local
government employer or nonemployer contributing entity to a defined
benefit plan after the measurement date of the government’s
beginning net pension liability. The adoption of GASB No. 68 and 71
had a significant impact on the University’s financial statements.
Upcoming Pronouncements
Reference “Basis of Presentation” footnote for a listing of upcoming
GASB pronouncements with discussion of potential impact on the
University.
Management’s Judgments and Accounting Estimates
Summary information about the process used by management in
formulating particularly sensitive accounting estimates and about our
conclusions regarding the reasonableness of those estimates is in the
attached Summary of Significant Accounting Estimates.
Audit Adjustments
There were no audit adjustments proposed by our Firm. University
management made closing entries in the normal course of business
to the original trial balance presented to us to begin our audit.
Page 1
Attachment A
Overall Page 47 of 204
Attachment Page 40 of 59
Attachment A
Auditor's Report
Area
December 3, 2015
Comments
Disagreements With
Management
We encountered no disagreements with management over the
application of significant accounting principles, the basis for
management’s judgments on any significant matters, the scope of the
audit, or significant disclosures to be included in the financial
statements.
Consultations With Other
Accountants
We are not aware of any consultations management had with other
accountants about accounting or auditing matters.
Significant Issues
Discussed With
Management
No significant issues arising from the audit were discussed with or the
subject of correspondence with management.
Significant Difficulties
Encountered in Performing
the Audit
We did not encounter any significant difficulties in dealing with
management during the audit.
Significant Written
Communications Between
Management and Our Firm
Copies of significant written communications between our firm and the
management of the University, including the representation letter
provided to us by management, are attached as Exhibit A.
Page 2
Attachment A
Overall Page 48 of 204
Attachment Page 41 of 59
Attachment A
Auditor's Report
December 3, 2015
Miami University
Summary of Significant Accounting Estimates
Year Ended June 30, 2015
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management’s current judgment. The process used by management encompasses their knowledge and
experience about past and current events and certain assumptions about future events. You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following describes the significant accounting estimates reflected in the University’s June 30, 2015,
financial statements.
Estimate
Allowance for
uncollectible student,
pledges and loans
receivable
Investments
Depreciable Life
Accounting Policy
The allowance for
uncollectible accounts
is based on
management’s
estimate of the
collectability of
identified receivables,
as well as aging of
accounts.
Investments are
recorded at fair value
Property and
equipment are
recorded at cost and
then depreciated over
the estimated useful
lives of the assets.
Management’s
Estimation Process
The University
calculates a specific
percent reserve on the
aging of the accounts
based on historical
experiences and by
identifying specific
accounts which are
doubtful of collection.
Investments that are
market traded are
recorded at fair value
based on quoted
market prices, as
established by the
major securities
markets. The value of
holdings of commingled
funds not having a
readily determined
market value is based
on the net asset value
as supplied by the
investment manager.
Investments in real
estate are recorded at
appraised value at the
date of the donation.
Estimated useful lives
are 50 years for
buildings; 25 years for
infrastructure, library
books and land
improvements; 20
years for improvements
to buildings; and 5 to 7
years for equipment,
vehicles, and furniture.
Basis for Our
Conclusions on
Reasonableness of
Estimate
We tested the
underlying information
supporting the
allowance. We
concluded
management’s estimate
is reasonable.
We tested the propriety
of the information
provided by a third
party and found it to be
consistent with fair
values we obtained
from another third party
source. The
methodology is
appropriate and
reasonable. As it
relates to the fair value
of the investments in
alternative investments
we corroborated the
information to
documentation
obtained directly from
fund management of
the alternative
investment funds and
found it to be
appropriate and
reasonable.
We believe the
estimates and process
used by the University
are appropriate based
upon our testing, which
included substantive
and analytical
procedures.
Page 3
Attachment A
Overall Page 49 of 204
Attachment Page 42 of 59
Attachment A
Estimate
Compensated
absences
Auditor's Report
Accounting Policy
Vacation and sick time
is accrued for
employees based upon
the term of their
employment contract or
years of service.
Management’s
Estimation Process
Unused vacation and
sick time are
determined by current
rates, terms of
employment and
subject to maximum
accruals.
December 3, 2015
Basis for Our
Conclusions on
Reasonableness of
Estimate
We tested the detail
listing of accrued
vacation and sick time
at June 30, 2015 and
noted the amounts
accrued are reasonable
based on the policy.
Page 4
Attachment A
Overall Page 50 of 204
Attachment Page 43 of 59
Attachment A
Auditor's Report
December 3, 2015
Exhibit A—Significant Written Communications between Management
and Our Firm
Attachment A
Overall Page 51 of 204
Attachment Page 44 of 59
Attachment A
Auditor's Report
Attachment A
Overall Page 52 of 204
December 3, 2015
Attachment Page 45 of 59
Attachment A
Auditor's Report
Attachment A
Overall Page 53 of 204
December 3, 2015
Attachment Page 46 of 59
Attachment A
Auditor's Report
Attachment A
Overall Page 54 of 204
December 3, 2015
Attachment Page 47 of 59
Attachment A
Auditor's Report
Attachment A
Overall Page 55 of 204
December 3, 2015
Attachment Page 48 of 59
Attachment A
Auditor's Report
Attachment A
Overall Page 56 of 204
December 3, 2015
Attachment Page 49 of 59
Attachment A
Financial Presentation
December 3, 2015
December 3, 2015
Attachment A
Overall Page 57 of 204
Attachment Page 50 of 59
Attachment A
Financial Presentation
December 3, 2015
Financial Statement Dashboards
Endowment and Non-endowment Cash and Investments
Balance Sheet
(000)
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$2006
2007
2008
2009
2010
2011
Nonendowment Cash and Investments
Attachment A
Overall Page 58 of 204
2012
2013
2014
Endowment
Attachment Page 51 of 59
2015
Attachment A
Financial Presentation
December 3, 2015
Financial Statement Dashboards
Bonds Payable and Unrestricted Net Assets (plus pension liability)
Balance Sheet
(000)
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$2006
2007
2008
2009
Bonds Payable
Attachment A
2010
2011
2012
2013
2014
Unrestricted Net Assets (plus pension liability)
Overall Page 59 of 204
Attachment Page 52 of 59
2015
Attachment A
Financial Presentation
December 3, 2015
Financial Statement Dashboards
Revenues
$600,000
$504,454
$476,261
$500,000
$410,611
$430,626
$444,370
$400,000
$337,053
$315,196
$300,000
$267,284
$280,772
$289,271
$69,014
$69,966
$72,399
$69,284
2012
2013
2014
2015
$200,000
$82,465
$100,000
$2011
Total Operating Revenue
Attachment A
Net Tuition and Fee Revenue
Overall Page 60 of 204
State Appropriation (non-operating)
Attachment Page 53 of 59
Attachment A
Financial Presentation
December 3, 2015
Financial Statement Dashboards
Revenues (continued)
$50,000
$40,000
$30,000
$20,000
$10,000
$-
$(10,000)
$(20,000)
2011
Attachment A
2012
2013
2014
2015
Net Investment Income - University
Net Investment Income - Foundation
Federal Contracts
Permenant Endowment Additions (University & Foundation)
Overall Page 61 of 204
Attachment Page 54 of 59
Attachment A
Financial Presentation
December 3, 2015
Financial Statement Dashboards
Expenses
$530,000
$28,324
$30,000
$525,000
$25,000
$520,000
$20,430
$515,000
$21,326
$20,000
$17,368
$510,000
$15,000
$505,000
$12,711
$524,868
$500,000
$495,000
$490,000
$10,000
$510,737
$507,161
$499,584
$497,452
$5,000
$485,000
$-
$480,000
2011
2012
2013
Total Operating Expenses
Attachment A
Overall Page 62 of 204
2014
2015
Interest on Debt
Attachment Page 55 of 59
Attachment A
Financial Presentation
December 3, 2015
How were the operating surpluses created?
Fall 2009 FTE
% of Total
Fall 15 FTE % of Total
Annual
Tuition
FY 2010 Revenue
FY 2016 Revenue
Impact
Resident
9,731
68.0%
9,276
57.7%
$ 13,533
$ 131,689,623
$ 125,532,108
$ (6,157,515)
Non Resident
4,587
32.0%
6,798
42.3%
$ 30,233
$ 138,677,854
$ 205,522,574
$ 66,844,721
$ 270,367,477
$ 331,054,682
$ 60,687,206
New Revenue From Enrollment Growth and Mix
Winter Term Net Revenue
$
7,100,000
Strategic Priorities- Expense Reductions
$ 30,807,163
2020 Productivity Goal
$
Auxiliary Revenue from Enrollment
Growth
$ 10,703,000
Auxiliary Expense Reductions
$
1,441,496
7,100,000
Total Productivity Improvement
$ 117,838,865
* Additional budget reductions totaling $32,055,324 were accomplished in FY 2010 and FY 2011 prior to Strategic Priorities and 2020 initiatives.
Attachment A
Overall Page 63 of 204
Attachment Page 56 of 59
Attachment A
Financial Presentation
December 3, 2015
Long Range Budget Model
Projected Undergraduate Enrollment
(Assumes Classes of 3,650 and 300 ACE)
16,500
16,000
15,994
15,987
16,019
16,044
FY 2016
FY 2017
FY 2018
FY 2019
15,925
15,971
15,981
15,988
FY 2021
FY 2022
FY 2023
15,542
15,500
15,381
14,968
15,000
14,844
14,742
14,618
14,500
14,000
13,500
FY 2010
Attachment A
FY 2011
FY2012
FY2013
FY 2014
FY2015
Overall Page 64 of 204
FY 2020
Attachment Page 57 of 59
Attachment A
Financial Presentation
December 3, 2015
Ten Year Ratio Trend
(without Pension Liability)
1.50
1.25
1.00
0.75
0.50
0.25
0.00
-0.25
2006
2007
2008
Primary Reserve Ratio
Attachment A
2009
2010
2011
2012
Viability (Debt) Ratio
Overall Page 65 of 204
2013
2014
2015
Net Income Ratio
Attachment Page 58 of 59
Attachment A
Financial Presentation
December 3, 2015
Ten Year Ratio Trend
(with Pension Liability)
1.50
1.25
1.00
0.75
0.50
0.25
0.00
-0.25
2006
2007
2008
Primary Reserve Ratio
Attachment A
2009
2010
2011
2012
Viability (Debt) Ratio
Overall Page 66 of 204
2013
2014
2015
Net Income Ratio
Attachment Page 59 of 59
Attachment B
December 3, 2015
Facilities Presentation
December 3, 2015
Attachment B
Overall Page 67 of 204
Attachment Page 1 of 17
Attachment B
December 3, 2015
Facilities Presentation
Gunlock Family Athletic Performance Center
•
•
•
Project Cost: $23,000,000
Completion Date/% Comp: November 2016/8%
Contingency/Balance: $650,000/95%
Attachment B
Cost of Work: $19,200,000
Project Delivery Method: Construction Manager at Risk
Overall Page 68 of 204
Attachment Page 2 of 17
Attachment B
December 3, 2015
Facilities Presentation
North Quad Renovation
•
•
•
Project Cost: $98,300,000
Completion Date/% Comp: August 2016/50%
Contingency/Balance: $8,397,813/95%
Attachment B
Cost of Work: $79,380,873
Project Delivery Method: Design Build
Overall Page 69 of 204
Attachment Page 3 of 17
Attachment B
December 3, 2015
Facilities Presentation
North Quad Renovation
Attachment B
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Attachment Page 4 of 17
Attachment B
December 3, 2015
Facilities Presentation
Shideler Hall
•
•
•
Project Cost: $25,000,000
Cost of Work: $20,039,255
Completion Date: January 2016/99% Project Delivery Method: Construction Manager at Risk
Contingency/Balance: $1,417,394/8%
Attachment B
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Attachment Page 5 of 17
Attachment B
December 3, 2015
Facilities Presentation
Shideler Hall
Attachment B
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Attachment Page 6 of 17
Attachment B
December 3, 2015
Facilities Presentation
Shideler Hall
Attachment B
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Attachment Page 7 of 17
Attachment B
North Quad Residence Hall
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
RESOLUTION R2015-14
WHEREAS, the 2009 Housing Master Plan called for 7100 beds on the Oxford campus
upon completion of the plan; and
WHEREAS, on-campus housing demand has continued to grow during implementation
of the Housing Master Plan’s first and second phases creating overflow conditions and leasing of
off-campus housing in excess of 300 beds; and
WHEREAS, a recent Housing Master Plan update anticipates a demand of 8000 beds by
2017 generating a shortfall of up to 500 beds on campus; and
WHEREAS, construction of a new residence hall is needed to provide sufficient housing
options for students; and
WHEREAS, the New North Quad Residence Hall project will provide approximately 340
beds on the existing site of the Inter-Collegiate Athletics varsity tennis courts for occupancy in
fall semester 2018; and
WHEREAS, the relocation of the varsity tennis courts to the west side of Yager Stadium
will support the Athletic Master Plan and is necessary to complete this project; and
WHEREAS, Miami University has determined that reduced costs, speed of
implementation, and coordination may be gained by using the Design Build project delivery
method; and
WHEREAS, Miami University has identified bond funds in the amount of $3,500,000 to
advance the design, cost estimating, early site development needs, and other preconstruction
services required to develop a Guaranteed Maximum Price (GMP) for the new residence hall; and
WHEREAS, the Board of Trustees desires to award a contract to the most responsive and
responsible design builder;
NOW, THEREFORE, BE IT RESOLVED: that the Board of Trustees authorizes the
Senior Vice President for Finance and Business Services and Treasurer, in accordance with all
State guidelines, to proceed with the award of a contract for the preconstruction phase of the New
North Quad Residence Hall project which is to include planning, design, estimating and all
related preconstruction services necessary to prepare the Guaranteed Maximum Price (GMP) for
a budget not to exceed $3,500,000.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment B
Overall Page 74 of 204
Attachment Page 8 of 17
Attachment B
North Quad Residence Hall
December 3, 2015
Executive Summary
for the
New Residence Hall
December 3, 2015
The 2009 Housing Master Plan included the construction of new residence halls on
campus providing swing space for renovating existing residence halls, replacement beds
for buildings not continued and replacement beds for the loss of beds from renovation
projects. Upon completion of the multi-year plan, the housing capacity was expected to
provide 7100 beds – essentially the same capacity prior to the master plan. At the time
this was considered an aggressive bed count given the incoming class had declined
significantly over the previous year. Success in enrollment goals since then, improved
student retention, growth of new international programs, and continued interest of
upper-class students in living in on-campus housing has required modification to the
original bed count plan as enrollment on campus has reached a record level.
Throughout the implementation of the earlier phases of the Housing Master Plan,
additional beds have been designed into the projects. For the recent East Quad
Renovations, nearly 100 additional beds were added beyond the original Housing Master
Plan estimates. The Board of Trustees also approved an addition to Hahne Hall as part of
the North Quad Renovation project adding another 100 beds.
Efforts have also been made to reduce the need for new beds by creating triples where
appropriate sized rooms are available (approximately 75 were incorporated into the
three new residence halls on Western Campus).
Availability of on-campus housing for upper-class students has also been reduced over
time to accommodate the growing demand by freshmen and sophomores. Finally,
modest use of off-campus apartments has enabled the increased demand to be
accommodated but leasing beds next to campus was not possible for this fall requiring
some students to be housed almost 2 miles from campus.
Several potential building sites have been evaluated for constructing a new residence hall
to meet the anticipated demand. The site of the Inter-Collegiate Athletics tennis courts
allows for the construction of an approximately 340-bed facility. The proposed site is
adjacent to the North Quad, which is currently off-line for renovations. Necessary utility
improvements to accommodate a new residence hall are now being made and will not
require further disruption. The site offers close proximity to Martin Dining Hall (currently
under renovation with The North Quad Renovations project) and the Garden Commons
dining facility. The Campus Planning Committee has approved this location for a new
residence hall.
Funding for this project will be from bond funds for the Long Range Housing Master Plan.
Attachment B
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Attachment Page 9 of 17
Attachment B
Project component:
North Quad Residence Hall
Budget:
December 3, 2015
Funding Source:
Est. Consulting Services:
Est. Cost of Work:
Est. Owner’s Costs:
Owner’s Contingency:
$3,100,000
$30,000,000
$1,300,000
$2,100,000
Total:
$36,500,000 Bond Series 2014
Attachment B
Overall Page 76 of 204
Bond Series 2014
Bond Series 2014
Bond Series 2014
Bond Series 2014
Attachment Page 10 of 17
Attachment B
Duke Utility Easement
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
RESOLUTION 2016-16
WHEREAS, On September 25, 2015 the Board granted a TEMPORARY
EASEMENT and the EASEMENT FOR ROAD PURPOSES to the Butler County Board
Commissioners (“Butler County”) to allow for planned improvements to Bonham Road
that include the replacement of the bridge over Four Mile Creek and the installation of
pedestrian walkways from the Miami University east stadium parking lot to Yager
Stadium Drive (“Bonham Road Improvements”);
WHEREAS, the Bonham Road Improvements necessitate the relocation of
overhead electrical transmission lines, which requires that the University grant a new
utility easement to Duke Energy of Ohio, Inc. to construct and maintain these lines, a
copy of which is attached to this Resolution and incorporated herein (“Utility
Easement”);
NOW, THEREFORE, BE IT RESOLVED: that the Board of Trustees approves
the Utility Easement, subject to the terms and conditions set forth therein.
BE IT FURTHER RESOLVED that the Senior Vice President for Finance and
Business Services be authorized to sign the Utility Easement, and perform those acts
necessary to carry out and perform the terms thereof.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment B
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Attachment Page 11 of 17
Attachment B
Duke Utility Easement
December 3, 2015
GRANT OF EASEMENT
(Pt. Parcel # H4100009000004 )
In consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of
which is hereby acknowledged, THE TRUSTEES OF MIAMI UNIVERSITY, (hereinafter referred to as
“Grantor”), hereby grant(s) unto DUKE ENERGY OHIO, INC., an Ohio corporation, with a mailing address of
139 East Fourth Street, Cincinnati, OH 45202 and its successors and assigns (hereinafter referred to as “Grantee”), a
perpetual, non-exclusive easement, to construct, reconstruct, operate, patrol, maintain, repair, replace, relocate, add
to, modify and remove electric and/or telecommunication overhead line or lines, including but not limited to, all
necessary and convenient supporting structures (such as poles), wires, cables, guy wires with anchors, grounding
systems, counterpoises, and all other appurtenances, fixtures and equipment (hereinafter referred to as the
“Facilities”) for the transmission and distribution of electrical energy, and for technological purposes (including but
not limited to telecommunications), in, upon, over, along, under, through and across the following described real
estate:
Situate in Section 23, Town 5, Range 1 East of the Miami Meridian, in Oxford Township, Butler County,
Ohio, being part of Lot 4 of the Subdivision of Lands of the Miami University as shown on the plat of
survey recorded in Plat Volume 54, Page 17, and being that property conveyed to THE STATE OF OHIO,
FOR THE USE OF THE PRESIDENT AND TRUSTEES OF THE MIAMI UNIVERSITY OF OXFORD,
OHIO from ELSIE B. RIGLING AND RALPH R. RIGLING by deed dated June 26, 1968, and recorded in
Deed Book 896, Page 391 in the Office of the Recorder of Butler County, Ohio (hereinafter referred to as
“Grantor’s Property”).
Said easement being that area indicated, relative to landmarks and property lines, as shown on a drawing
marked Exhibit “A”, attached hereto and becoming a part hereof, and shall be further evidenced by the
Facilities where constructed on Grantor’s Property (hereinafter referred to as “the Easement Area”).
This easement grant shall include, but not be limited to, the following respective rights and duties of
Grantor and Grantee:
1. Grantee shall have the right of ingress and egress over the Easement Area, and over the adjoining land
of Grantor’s Property (using lanes, driveways, and adjoining public roads where practical as determined by
Grantee).
Attachment B
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Attachment Page 12 of 17
Attachment B
Duke Utility Easement
December 3, 2015
2. Grantee shall have the right to cut down, clear, trim, remove, and otherwise control any trees, shrubs,
overhanging branches, and/or other vegetation upon or over the Easement Area. Grantee shall also have the right to
cut down, clear, trim, remove, and otherwise control any trees, shrubs, overhanging branches, and/or other
vegetation which are adjacent to the Easement Area but only to the extent such vegetation may endanger, as
reasonably determined by Grantee, the safe or reliable operation of the Facilities, or where such vegetation is
trimmed consistent with generally accepted arboricultural practices.
3. Grantee shall have the right to allow third parties (a) to attach equipment to Grantee’s Facilities and (b),
to trench with Grantee’s Facilities, and with either (a) or (b), any such equipment shall include, but not be limited to,
wires, cables, and other fixtures; provided, that Grantor shall pursue any claim with the third party and not Grantee,
if any such claim arises out of any third party’s attachment.
4. To the best of Grantor’s knowledge, the Easement Area and the adjoining land of Grantor’s Property,
have never been used to release, discharge, generate or store any toxic, hazardous, corrosive, radioactive or
otherwise harmful substance or material.
5. Grantor shall not place, or permit the placement of, any obstructions, which may interfere with the
exercise of the rights granted herein to Grantee. Grantee shall have the right to remove any such obstruction.
6. Grantee shall have the right to pile dirt and other material and to operate equipment upon the surface of
the Easement Area and the adjoining land of Grantor’s Property, but only during those times when Grantee is
constructing, reconstructing, maintaining, repairing, replacing, relocating, adding to, modifying, or removing the
Facilities.
7. Excluding the removal of vegetation and obstructions as provided herein, any physical damage to the
surface area of the Easement Area and the adjoining land of Grantor’s Property resulting from the exercise of the
rights granted herein to Grantee, shall be promptly paid by Grantee, or repaired or restored by Grantee to a condition
which is reasonably close to the condition it was in prior to the damage, all to the extent such damage is caused by
Grantee or its contractors or employees. In the event that Grantee does not, in the opinion of Grantor, satisfactorily
repair any damage, Grantor must, within ninety (90) days after such damage occurs, file a claim for such damage
with Grantee at (a) 139 East Fourth Street, Cincinnati, OH 45202 Attn: Right of Way Services, or (b) by contacting
an authorized Right of Way Services representative of Grantee.
8. Grantor shall have the right to use the Easement Area and the adjoining land of Grantor’s Property in
any manner which is consistent with the rights granted herein to Grantee, and shall comply with all applicable codes
when making use of the land near the Facilities.
9. Notwithstanding anything to the contrary contained herein, Grantor shall not without the prior written
consent of Grantee (a) construct or install, or permit the construction or installation of any building, house, or other
above-ground structure, or portion thereof, upon the Easement Area; or (b) excavate or place, or permit the
excavation or placement of any dirt or other material upon or below the Easement Area; or (c) cause, by excavation
or placement of material, either on or off the Easement Area, a pond, lake, or similar containment vehicle that would
result in the permanent retention of water in any manner within the Easement Area. This Grant does not prohibit
Grantor from constructing a paved road, curbs, sidewalks, poured in-place mulch, retaining walls and paved parking
surface upon the Easement Area.
10. Grantor warrants that it has the necessary authority and title to Grantor’s Property to grant this easement
to Grantee, and shall defend and hold Grantee harmless from the claim of any third party that Grantor does not have
such authority or title.
Attachment B
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Attachment Page 13 of 17
Attachment B
Duke Utility Easement
December 3, 2015
11. The respective rights and duties herein of Grantor and Grantee shall inure to the benefit of, and shall be
binding upon the respective successors, assigns, heirs, personal representatives, lessees, licensees, and/or tenants of
Grantor and Grantee. Easement, Grantor and Grantee, as used herein, shall be deemed to be plural, when required to
be so. The exercise of any or all of the rights and privileges of Grantee set forth herein, shall be at the sole
discretion of Grantee.
Attachment B
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Attachment Page 14 of 17
Attachment B
Duke Utility Easement
December 3, 2015
IN WITNESS WHEREOF, Grantor has caused this Grant of Easement to be signed by its duly authorized
representative(s), effective the _______ day of _______________, 2015.
THE TRUSTEES OF MIAMI UNIVERSITY, Grantor
By: _________________________________________
By: _________________________________________
Name: _______________________________________
Name: _______________________________________
Title: ________________________________________
Title: ________________________________________
STATE OF
_________________
COUNTY OF _________________
)
) SS:
)
Personally appeared before me this day ______________________ and ____________________, duly authorized
representative(s) of Grantor and acknowledged the signing of this Grant of Easement by ______ to be a voluntary
act and deed for and on behalf of Grantor, and having been duly sworn/affirmed, state(s) that any representations
contained therein are true to the best of _______ personal knowledge.
WITNESS my hand and notarial seal, this ______ day of ___________________, 2015.
My Commission Expires: ________________
Signed Name: _____________________________________
My County of Residence: ________________
Printed Name: _____________________________________
This Instrument Prepared by Janice L. Walker, Attorney-at-Law, 139 E. Fourth St. Cincinnati, OH 45202.
For Grantee’s Internal Use:
Emax #: E7956465
LU#1676354
Pole: BTO-14981
Prep/Chk: TLM/_______ Exec/Rec: _________
Prepared Date: November 2, 2015
Attachment B
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Attachment Page 15 of 17
Attachment B
Duke Utility Easement
December 3, 2015
Attachment B
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Attachment Page 16 of 17
Attachment B
Duke Utility Easement
December 3, 2015
Attachment B
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Attachment Page 17 of 17
Attachment C
Tuition Promise Presentation
December 3, 2015
Tuition Promise
Finance and Audit Committee
December 3, 2015
Attachment C
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Attachment Page 1 of 15
Attachment C
Tuition Promise Presentation
December 3, 2015
Miami Tuition Promise
• Is a guaranteed tuition program for first-time, degree-seeking undergraduate
students on the Oxford campus.
• Would include tuition (instructional and general fee) as well as room and board
• Would establish a single all-in amount guaranteed for 4 years for each academic
year’s entering cohort
Included: Special Purpose Fees (i.e., CEC major fees; Architecture, Interior Design and Music major fees in CCA); Course Fees (e.g., percredit-hour FSB course fee, laboratory fees).
Not Included: Service Charges and fines, such as vehicle registration and library and parking fines. Workshops, student health insurance,
textbooks and supplies
Attachment C
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Attachment Page 2 of 15
Attachment C
Tuition Promise Presentation
December 3, 2015
Tuition Promise – Why?
Supported by students, parents, high school counselors
June, 2013:
Ohio General Assembly legislation enables universities to set tuition for four years
April 2014:
ASG passes resolution urging adoption of guaranteed tuition program (SR020411)
Feb, Apr 2014: Discuss options with Finance and Audit Committee of the Board of Trustees
2014-15:
ASG passes two additional resolutions reaffirming support (SR021501 and SR021529)
Aug, 2015:
Fiscal Priorities Committee indicates unanimous support for Tuition Promise for
Oxford Campus
Fall, 2015:
Creation of Miami University Tuition Promise for the Oxford Campus discussed with
Senate, Faculty Assembly and Finance and Audit Committee of Board of Trustees
Attachment C
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Attachment Page 3 of 15
Attachment C
Tuition Promise Presentation
Program Attributes
1. Initial Rate of
Increase for Ohio Residents
2. Mandatory for New Undergraduate degree seeking
students
3. Guarantee for four years
Guarantee applies to regional campus students relocating to main
4. campus
5. Non-degree students excluded from guarantee
Allows students to complete as many credit hours, degrees and minors
6. in four years as desired
Guarantee includes tuition, all general fees, course and program fees
7. and room and board
8. Course and program fees are a level amount
Transfer students from an Ohio public community or technical college
9. are treated like students relocating from a regional campus
Tuition guarantee also applies to designated graduate courses
10. completed during the four year period
Students enrolled in programs requiring more than four years will have
11. their guarantee extended
Students who take more than four years are assigned to the next
12. oldest cohort
13. Extended time
Attachment C
is provided for extraordinary circumstances
Overall Page 87 of 204
December 3, 2015
Miami University
Ohio University
2.9%
5.0%
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Attachment Page 4 of 15
Attachment C
Tuition Promise
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
RESOLUTION R2016-12
Miami Tuition Promise
WHEREAS, the Ohio General Assembly appropriated additional funding for public
higher education in Ohio for the explicit purpose of freezing tuition for resident undergraduate
students for academic year 2015-6 and academic year 2016-17; and
WHEREAS, the Miami University Board of Trustees (Board) intends to adopt an
ordinance freezing tuition at the fall 2014 level for all returning resident undergraduate students
on all campuses and first time resident undergraduate students on the regional campuses; and
WHEREAS, the Board desires to offer resident undergraduate students enrolling on the
Oxford Campus for the first time the effect of the same tuition freeze while also providing them
greater certainty about the cost of tuition for all four years they are expected to enroll on the
Oxford Campus; and
WHEREAS, Ohio law (Ohio Revised Code §3345.48) authorizes universities to establish
an Undergraduate Tuition Guarantee Program (Program) by adopting a rule for the governance
of the Program; and
WHEREAS, such rule must be submitted to the Chancellor of the Ohio Department of
Higher Education for approval; and
WHEREAS, the Board believes that a tuition guarantee program when combined with
guaranteed room and board rates and other instructional fees will provide students and their
families with the certainty that the cost of their education will not increase over the four
academic years of their Miami experience; and
WHEREAS, the Board is convinced that by holding these costs constant , the Miami
Tuition Promise will provide the confidence and certainty that families need to more effectively
plan for the cost of a college education; and
WHEREAS, in establishing the initial price for tuition under the Program the Board
intends that the cost of tuition be no more than the effect of a tuition freeze in the first year of the
four year guarantee and annual increases of 2% for the remaining three years of the guarantee;
NOW THEREFORE BE IT RESOLVED, that the Board of Trustees adopts the Miami
University Tuition Promise attached hereto as Exhibit A for the governance of the Program; and
BE IT FURTHER RESOLVED, that the President and the Senior Vice President for
Finance and Business Services are authorized to submit the Miami University Tuition Promise to
the Chancellor of the Ohio Department of Higher Education for approval as required by Ohio
Attachment C
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Attachment Page 5 of 15
Attachment C
Tuition Promise
December 3, 2015
Revised Code 3345.48 and are further authorized to modify the Program as may be appropriate
to obtain the approval by the Chancellor; and
BE IT FURTHER RESOLVED, the Miami University Tuition Promise shall become
effective with the approval of the Chancellor of the Ohio Department of Higher Education and
shall be implemented beginning with the 2016-2017 academic year.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment C
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Attachment Page 6 of 15
Attachment C
Tuition Promise
December 3, 2015
MIAMI UNIVERSITY TUITION PROMISE
A. TUITION PROMISE
1. The Miami University Tuition Promise is an Oxford campus, cohort-based, guaranteed
undergraduate tuition program adopted in accordance with Ohio Revised Code §3345.48.
Miami University’s Tuition Promise provides all First-Time Students and their families the
certainty that Tuition, Special Purpose and Course Fees and Room and Board charges will
not increase over the ensuing four academic year period from their first enrollment as a
degree seeking student. The Tuition Promise will apply to all First-Time, degree-seeking
undergraduate students enrolling on the Oxford campus. Tuition and fees will be set
annually for returning students on the Oxford Campus, Miami’s regional campuses,
Luxembourg campus and for the Voice of America Center. Participation in the program is
required for all First-Time, degree-seeking undergraduate students enrolling on the Miami
University Oxford campus for the first time in fall semester of 2016 or later.
2. The four academic years of the Tuition Promise includes eight consecutive semesters, four
(4) winter and four (4) summer terms. The four academic year term is guaranteed
regardless of the student’s enrollment status (full- or part-time or not enrolled) during that
time.
3. Tuition is set by the Board of Trustees each academic year and guaranteed for eight
consecutive semesters for each entering Cohort. Winter and summer terms are charged
separately based on the guaranteed Cohort per-credit-hour rate.
B. TERMS
1. First-Time Student
A First-Time Student is any undergraduate, degree-seeking student enrolled on Miami
University’s Oxford campus for the first time on or after fall 2016. First-Time Students
include students who enroll at Miami after graduating from high school, transfer students
who enroll from another college or postsecondary institution, and non-traditional students
who enroll on the Oxford campus for the first time. First-Time Students do not include nondegree-seeking students or conditionally admitted students such as students enrolled in the
American Culture and English (ACE) Program, College Credit Plus or Advanced High School;
exchange students; and other students participating in other pre-enrollment or
postsecondary option programs.
2. Returning Students
Students enrolled at the Miami University Oxford campus prior to summer term 2016 and
who are enrolled in fall term 2016 or later are considered Returning Students for purposes
of assessing tuition and other fees and are not covered by the Miami Tuition Promise.
Tuition and other fees are set annually by the Board of Trustees for these students.
Attachment C
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Attachment Page 7 of 15
Attachment C
Tuition Promise
December 3, 2015
3. Cohort
a) First-Time Students are assigned to a Cohort (group) based on the semester in which
the student first enrolls as a degree-seeking student. Each academic year contains one
fall semester Cohort and one spring semester Cohort.



Any Oxford campus degree-seeking, undergraduate student who is registered for
classes for the first time as of the fifteenth day of the fall or spring term will be
assigned to that Cohort year for purposes of determining Tuition, Special Purpose
and Course Fees and Room and Board for the four academic years covered by the
guaranteed Cohort price. Each Cohort commences with the first semester of
enrollment and the pricing remains constant for four academic years (e.g., fall 2016
through summer 2020 or spring 2017 through winter 2021).
Students may complete as many undergraduate degrees, majors, minors, and/or
certificates as they choose within their Cohort period.
Students may enroll in graduate-level coursework for programs offered on the
Oxford campus at their guaranteed tuition rate until their Cohort period expires..
4. Tuition (Instructional and General Fee)
Tuition is the sum of the Instructional Fee and General Fee. For non-Ohio-resident students,
Tuition also includes a tuition surcharge. Under the Tuition Promise, Tuition is set each
academic year for eight consecutive semesters for each entering fall and spring Cohort.
Winter and summer terms are charged separately based on the guaranteed Cohort percredit-hour rate.
a) Instructional Fee
These are the guaranteed instructional costs that First-Time, degree-seeking students
will pay. Non-Ohio-resident students also pay a tuition surcharge. Each incoming Cohort
is charged its unique, guaranteed resident or non-resident rate for eight consecutive
semesters. Full-time students pay no additional Tuition regardless of the number of
hours enrolled. Part-time students pay Instructional Fees on a pro-rated, per-credithour basis.
b) General Fee
These are campus fees charged to all students for non-instructional services and
programs on campus, such as orientation, health education and services, recreation,
athletics, transportation, access to technology, graduation, the Armstrong Student
Center, other student-life facilities and student activities.
5. Room and Board Charges
Room and Board charges are the guaranteed rates for Miami’s housing and meal plan
options. Students pay a fee based on the housing and meal plan selected. The schedule of
fees and options are guaranteed for each Cohort for eight consecutive semesters. Miami
University requires first- and second-year students to reside in University-provided housing
and to purchase a meal plan.
2
Attachment C
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Attachment Page 8 of 15
Attachment C
Tuition Promise
December 3, 2015
6. Additional Tuition Promise Guaranteed Fees
a) Special Purpose Fees
Special Purpose Fees are additional per-semester charges that vary by college within
the University and support specialized academic programs and instruction in that
specific college (i.e., the College of Engineering and Computing major fees and the
Architecture, Interior Design and Music major fees in the College of Creative Arts).
These fees are charged as applicable and are guaranteed for each Cohort.
b) Course Fees
Course Fees are per-credit-hour charges for certain courses or course-related costs and
vary based on the course (e.g., the per-credit-hour Farmer School of Business course fee,
laboratory fees). These fees are charged as applicable and are guaranteed for each
Cohort.
7. Charges and Fines Not Included in the Tuition Promise
a) Service Charges and Fines
These are charges and fines incurred by students such as vehicle registration and
library and parking fines. These charges and fines will vary from year to year and are
not included in Miami’s Tuition Promise.
b) Workshops, student health insurance, textbooks and supplies are not included in the
Tuition Promise.
C. DISSEMINATION
The terms of the Tuition Promise, along with Miami University Board of Trustees’ approved
guaranteed Cohort prices, will be widely disseminated including publication on the Miami
University Admission, One Stop for Student Success Services and other student service websites
and in the Miami University Policy Library.
D. ADDITIONAL PROVISIONS
1. Summer/Winter Term Start
Students whose first enrollment is a summer or winter term will pay the continuing
student/non-degree-seeking student tuition rate for the initial term, but will be assigned to
the entering semester Cohort that immediately follows. Summer start students are typically
students who have confirmed their enrollment and will be matriculating for the first time
for the fall semester immediately following the summer term. By being assigned to the
following semester Cohort, these students will receive the benefit of guaranteed tuition for
four full years after completing the initial term.
3
Attachment C
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Attachment Page 9 of 15
Attachment C
Tuition Promise
December 3, 2015
2. Students Enrolled on Both Oxford and Regional Campuses
In addition to students who take all of their credit hours during an academic year (fall,
winter, spring or summer) on either the regional campuses or the Oxford campus, some
students take classes at the regional campuses and the Oxford campus during the same
semester or academic year. Historically, these students have been assessed the tuition
applicable to the “campus of the student” for all credit hours taken. Miami University will
continue to use the “campus of the student” to determine the tuition applicable for all hours
enrolled by the student during an academic year.
3. Exception for Relocating Students and Students Transferring from Ohio’s Public Community
and Technical Colleges
When a student transfers from one of Ohio’s public community or technical colleges or
relocates from one of Miami University’s regional campuses to the Oxford campus, the
student will be assigned to the lowest unexpired Cohort for the duration of that Cohort.
The Cohort will be assigned based on the earliest date of enrollment as a full-time
undergraduate student at the qualifying institution. When the assigned Cohort expires the
student will automatically be placed into the Cohort that went into effect the year after their
assigned Cohort (Cohort +1). The student will remain in that Cohort for up to one year and if
still enrolled after that Cohort expires, will be placed into the next Cohort (Cohort +2) for the
next year and so on until the student is no longer enrolled. (Students admitted for College
Credit Plus or other conditional admissions are not considered to be fully admitted).
If four (4) or more academic years have elapsed since the student’s first date of enrollment
as a full-time undergraduate student at the qualifying institution, then the student
transferring from one of Ohio’s public community or technical colleges or relocating from
one of Miami University’s regional campuses will be assigned to the oldest unexpired Cohort
on the Oxford campus.
For Oxford campus students relocating to the regional campuses, these students will pay the
current tuition and other fees in effect on the regional campuses. These students may
relocate back to the Oxford campus at any time and pay tuition and other fees associated
with their original Cohort.
4. Non-Degree Students
Students admitted or enrolled as non‐degree-seeking students (students who are not
pursuing an undergraduate degree or have not been admitted as a degree-seeking student
at Miami University) are not covered by the Tuition Promise and will not be assigned to a
Cohort unless the student is subsequently admitted and enrolls as a degree-seeking student.
Tuition for these students will continue to be set annually by the Board of Trustees. This
includes non-degree-seeking students or conditionally admitted students such as students
enrolled in the American Culture and English (ACE) Program, College Credit Plus or
Advanced High School; exchange students, and other students participating in other preenrollment or postsecondary option programs. Once a student is admitted as a First-Time,
degree‐seeking student, the student will be assigned to the Cohort based on the semester in
which the student first enrolled as a degree-seeking student.
4
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Attachment C
Tuition Promise
December 3, 2015
5. Re‐Enrolling Students
Re‐enrolling students who were admitted in a degree‐seeking program prior to fall 2016
are not covered by the Tuition Promise and will pay tuition and other fees associated with
Returning Students.
When a student originally assigned to a Cohort seeks to re-enroll after any period of nonattendance and not more than four (4) academic years have elapsed since the student’s
initial degree-seeking enrollment, then the student will be assigned to the student’s original
Cohort for the balance of the Cohort period. If four (4) or more academic years have elapsed,
then the re‐enrolling student is assigned to the oldest unexpired Cohort on the Oxford
campus.
E. EXCEPTIONS TO STANDARD LENGTH OF COHORT
The Miami University Tuition Promise is for four (4) academic years commencing with either the
fall or spring semester. Some students may require additional academic periods beyond the four
(4) academic years to complete their baccalaureate degree and will continue to attend the Oxford
campus beyond their Cohort period. When certain exceptions are met (as described in Section L of
this document) students may extend their guaranteed Cohort price beyond their guaranteed
Cohort period. A student must apply for an exception no later than one semester prior to the
expiration of their Cohort. Students with approved exceptions will be granted additional courses at
their guaranteed Cohort price. The specific courses or length of the exception will be determined as
part of any approval.
F. ACADEMIC COSTS INCLUDED IN THE MIAMI UNIVERSITY TUITION PROMISE
1. Tuition (Instructional and General Fee)
Tuition is the sum of the Instructional Fee and General Fee. For non-Ohio resident students,
Tuition also includes a tuition surcharge. Under Miami’s Tuition Promise, Tuition is set each
academic year and guaranteed for eight consecutive semesters for each entering Cohort.
Winter and summer terms are charged separately based on the guaranteed Cohort percredit-hour rate.
a) Instructional Fee
These are the guaranteed, instructional costs that all First-Time, degree-seeking
students will pay. Non-Ohio resident students will also pay a tuition surcharge. Each
incoming Cohort is charged its unique, guaranteed resident or non-resident rate for
eight consecutive semesters. Full-time students pay no additional Tuition regardless of
the number of hours enrolled. Part-time students pay instructional fees on the Cohort
pro-rated, per-credit-hour basis. The Tuition Promise does not include workshops.
b) General Fee
5
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Attachment C
Tuition Promise
December 3, 2015
These are campus fees charged to all students for non-instructional services and
programs on campus, such as recreation, athletics, transportation, technology, the
Armstrong Student Center, other student-life facilities and student activities.
c) Special Purpose Fees
Special Purpose Fees are additional per-semester fees that vary by college within the
University and support specialized academic programs and instruction in that specific
college (i.e., the College of Engineering and Computing major fees and the Architecture,
Interior Design and Music major fees in the College of Creative Arts). These fees are
charged as applicable and are guaranteed for each Cohort.
d) Course Fees
Course Fees are per-credit-hour fees for certain courses or course-related costs and
vary based on the course (e.g., the per-credit-hour Farmer School of Business course fee,
laboratory fees). These fees are charged as applicable and are guaranteed for each
Cohort.
G. OTHER STUDENT COSTS INCLUDED IN THE MIAMI UNIVERSITY TUITION PROMISE
The goal of the Tuition Promise is to provide a comprehensive set of costs for completing an
undergraduate degree at Miami University. The following costs are also included in the Miami
University Tuition Promise:
1. Housing Rates (Room)
The Tuition Promise includes a guaranteed price schedule for housing that represents the
various housing options available to undergraduate students. The rate charged to the
student is based upon the student’s selected or assigned residence type, (e.g., single room,
double room, triple occupancy, new construction and renovated hall). If a student changes
from one room or hall type to another during the Cohort period, the housing rate charged to
the student will be adjusted based on the guaranteed price schedule that is in effect
throughout the student’s Cohort period.
Student requests to reside in on-campus housing beyond the second year are subject to
room availability. If space is available for a student who has already met the residency
requirement, the established Cohort rate schedule for student rooms continues throughout
the period covered by the guaranteed Cohort price.
2. Meal Plan Rates (Board)
The Tuition Promise includes a number of meal plan options from which the student may
choose depending on whether the student is residing on- or off- campus. A meal plan is
required for students residing in university housing. A Cohort menu of meal plans and rates is
included as part of the Cohort pricing and the actual meal plan cost will be based on the
meal plan selected by the student. While the meal plan price will remain guaranteed during
the Cohort period, individual meal items and merchandise in retail locations are subject to
6
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Attachment C
Tuition Promise
December 3, 2015
price changes.
H. OTHER STUDENT COSTS NOT INCLUDED IN THE MIAMI UNIVERSITY TUITION PROMISE
All other fees, fines, and costs related to attending Miami University not specifically identified as
part of the Tuition Promise are excluded from the guaranteed Cohort price and are subject to
price changes. These exclusions include credit workshops, student health insurance and
textbooks. While such costs are excluded, Miami University will seek to limit increases to the
extent feasible.
I.
COHORT PRICING BEYOND THE INITIAL YEAR
1. Once the initial Cohort Tuition is established, subsequent Cohort increases in Tuition will be
based on:
a) The average rate of inflation, as measured by the consumer price index prepared by the
Bureau of Labor Statistics of the United States Department of Labor (all urban
consumers, all items), for the previous sixty-month period; and
b) The percentage amount the Ohio General Assembly restrains increases on in-state
undergraduate Instructional and General Fees for the applicable fiscal year. If the
General Assembly does not enact a limit on the increase of in-state undergraduate
instructional and general fees, then no limit shall apply under this section for the Cohort
that first enrolls in any academic year for which the General Assembly does not
prescribe a limit.
c) This rate of increase will be benchmarked against other State of Ohio four‐year
residential research institutions’ four-year rolling cost averages to account for the
impact of the Cohort pricing model on tuition changes. If Miami University’s Cohort
Tuition for Ohio residents falls significantly below these institutions, Miami University
may elect to submit for approval by the Chancellor of the Department of Higher
Education an increase in the forthcoming Cohort Tuition pricing in excess of the stated
limitation for Ohio residents.
2. Other increases in Cohort pricing, including the Non-Resident Tuition Surcharge, Special
Purpose Fees, Course Fees and Room and Board charges are not subject to the pricing
formula set forth above and will be determined by the Miami University Board of Trustees.
J.
STUDENTS WHO STOP OUT/WITHDRAW AND RETURN
If a student takes a leave, withdraws, or is judicially suspended from the University for one or
more academic semesters, the four (4) academic year period covered by the guaranteed Cohort
price will not be extended. As a result, the student will lose the term(s) of eligibility while absent
within the four (4) academic year Cohort period. When the student re‐enrolls, if four (4) academic
years have not lapsed since the student’s initial degree-seeking enrollment, then the student will
be charged the guaranteed rate based on his or her original Cohort for the balance of the Cohort
7
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Attachment C
Tuition Promise
December 3, 2015
period. If four (4) or more academic years have passed, then the re‐enrolling student is assigned
to the oldest unexpired Cohort on the Oxford campus (as defined in section K).
K. STUDENTS WHO REQUIRE LONGER THAN THEIR COHORT PERIOD TO GRADUATE
Students who do not complete their undergraduate degree requirements and are not eligible for
an exception (as defined below) by the end of their assigned Cohort term, will automatically be
placed into the Cohort that went into effect the year after their assigned Cohort (Cohort +1). The
student will remain in that Cohort for up to one year and if still enrolled after that Cohort
expires, will be placed into the next Cohort (Cohort +2) for the next year and so on until the
student is no longer enrolled.
L. EXCEPTIONS FOR STUDENTS WHO REQUIRE LONGER THAN THEIR COHORT PERIOD TO
GRADUATE
There will be some students who will take longer than their guaranteed Cohort period to
graduate due to circumstances beyond their control. No later than one semester prior to the
expiration of their guaranteed Cohort term, a student may request, an extension of their
guaranteed Cohort price. Each case will be evaluated on its own merits to determine whether
an extension should be granted and if so, the nature and duration of any extension.
1. A Tuition Promise Appeals Committee will evaluate requests for exceptions. The appeal
must fall within extenuating circumstances established by the Appeals Committee as
described below.
a) If the Appeals Committee finds that the student cannot complete the degree program
within the four (4) academic years of the student’s Cohort due solely to a lack of
available classes or space in classes provided by the University, the University will
provide the student with an opportunity to take the necessary course or courses
without requiring the payment of tuition.
b) Other circumstances will be considered for an extension of the guaranteed Cohort price
beyond the four academic years depending on the validity and impact of the circumstances
including:





Enrollment in a degree program requiring more than 128 hours to graduate
Illness or Injury
Disability that necessitates a reduced course load as a reasonable accommodation
Medical Leave of Absence
Victim of Interpersonal Violence or Crime while enrolled
c) If the Appeals Committee determines that the student has provided sufficient
documentation of extenuating circumstances that were outside the control of the
student and prevented the student from completing the student’s program of study
during the assigned Cohort period, the Committee will determine the appropriate
period of time or number of courses to extend the guaranteed Cohort price.
8
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Attachment C
Tuition Promise
December 3, 2015
d) Any student called to active duty in the United States Armed Services will be given an
automatic extension of their guaranteed Cohort price based upon the number of
academic terms impacted by the student’s active duty absence.
M. GRADUATE COURSES
Students may enroll in graduate-level coursework for designated programs offered on the
Oxford campus at their guaranteed tuition rate until their Cohort period expires. Students
pursuing this option must meet all university requirements for admission to the program or
to enroll in such courses. Following the expiration of their original Cohort, tuition for
graduate level coursework will be assessed at the current Oxford campus graduate student
rate applicable to the program of study.
9
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Attachment Page 15 of 15
Attachment D
Undergraduate Tuition Presentation
December 3, 2015
December 3, 2015
Attachment D
Overall Page 99 of 204
Attachment Page 1 of 11
Attachment D
Undergraduate Tuition Presentation
December 3, 2015
Oxford Campus
Undergraduate Tuition
Fall 2016
Continuing Students
Ohio Residents
Academic Year Full-Time (12 or more credit hours per semester)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Tuition
Semester-On
Campus
2015-16
2016-17
% Change
$6,766.50
$6,766.50
114.00
60.00
66.00
110.00
$7,116.50
114.00
60.00
66.00
110.00
$7,116.50
2015-16
$6,766.50
168.00
60.00
66.00
110.00
$7,170.50
0%
Semester-Off
Campus
2016-17
% Change
$6,766.50
168.00
60.00
66.00
110.00
$7,170.50
0%
Academic Year Part-Time (Per credit hour up to 11 hours)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Tuition
Semester-On
Campus
2016-17
$563.88
Semester-Off
Campus
2016-17
$563.88
9.50
5.00
5.50
9.16
$593.04
14.00
5.00
5.50
9.16
$597.54
Summer and Winter Term- Part Time (per credit hour)
2016-17
$535.60
9.16
$544.76
Basic Instructional and General Fee
Armstrong Student Center Fee
Attachment D
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Attachment Page 2 of 11
Attachment D
Undergraduate Tuition Presentation
December 3, 2015
Nonresidents
Academic Year Full-Time (12 or more credit hours per semester)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Nonresident Surcharge
Tuition
Semester-On
Campus
2015-16
2016-17
$6,766.50
$6,766.50
114.00
60.00
66.00
110.00
8349.90
$15,466.40
114.00
60.00
66.00
110.00
8652.50
$15,769.00
% Change
2015-16
$6,766.50
168.00
60.00
66.00
110.00
8349.90
$15,520.40
1.96%
Semester-Off
Campus
2016-17 % Change
$6,766.50
168.00
60.00
66.00
110.00
8652.50
$15,823.00
1.96%
Academic Year Part-Time (Per credit hour up to 11 credit hours)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Nonresident Surcharge
Tuition
Semester-On
Campus
2016-17
563.88
Semester-Off
Campus
2016-17
$563.88
9.50
5.00
5.50
9.16
721.04
$1,314.08
14.00
5.00
5.50
9.16
721.04
$1,318.58
Summer and Winter Term- Part Time (per credit hour)
2016-17
$535.60
9.16
$721.04
$1,265.80
Basic Instructional and General Fee
Armstrong Student Center Fee
Nonresident Surcharge
Attachment D
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Attachment Page 3 of 11
Attachment D
Undergraduate Tuition Presentation
December 3, 2015
Oxford Campus
Undergraduate Tuition
Fall 2016
Miami University Tuition Promise
Academic Year Full-Time (12 or more credit hours per semester)
Ohio
Resident
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Matriculation Fee
Nonresident Surcharge
Tuition
2015-2016
$6,766.50
2016-17
$6,963.00
141.00
60.00
66.00
110.00
28.00
N/A
$7,171.50
141.00
60.00
66.00
110.00
28.00
N/A
$7,368.00
Nonresident
% Change
2.74%
2015-2016
$6,766.50
2016-17
$6,963.00
141.00
60.00
66.00
110.00
28.00
8349.90
$15,521.40
141.00
60.00
66.00
110.00
28.00
8909.50
$16,277.50
% Change
4.87%
Academic Year Part-Time (Per credit hour up to 11 credit hours)
Ohio
Resident
Nonresident
Basic Instructional and General Fee
2016-207
$580.25
2016-2017
$580.25
Other General Fees:
Technology Fee1
Facilities Fee
Transit Fee
Armstrong Student Center Fee2
Matriculation Fee
Nonresident Surcharge
Tuition
11.75
5.00
5.50
9.16
2.33
N/A
$613.99
11.75
5.00
5.50
9.16
2.33
742.46
$1,356.45
1 The
2
technology fee is no longer assessed at a different rate for on-campus and off-campus students. The average cost of the previous fee is unchanged.
The matriculation fee was previously billed separately as an orientation, alcohol education and graduation fee and not included in tution. For increased transparency
these fees are now being billed as part of tuition but at no increased cost to the student.
Attachment D
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Attachment Page 4 of 11
Attachment D
Basic Instructional and General Fee
Armstrong Student Center Fee
Nonresident Surcharge
Attachment D
Undergraduate Tuition Presentation
December 3, 2015
Ohio
Resident
Nonresident
2016-17
$551.25
9.16
N/A
$560.41
2016-17
551.25
9.16
$742.46
1302.87
Overall Page 103 of 204
Attachment Page 5 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
ORDINANCE 2016-01
Undergraduate Student Tuition
2016-2017 Academic Year
WHEREAS, the Ohio General Assembly appropriated additional funding for public
higher education in Ohio for the explicit purpose of freezing tuition for resident undergraduate
students for academic years 2015-16 and 2016-17; and
WHEREAS, the Miami University Board of Trustees recognizes the difficult budget
choices that this action required and expresses its gratitude to the Governor, the President of the
Senate, the Speaker of the House and members of the Ohio General Assembly for its investment
in Ohio’s future and improving affordability for our students; and
WHEREAS, through this ordinance tuition will be frozen for all returning Ohio
undergraduate students at the fall 2014 level for s second consecutive year; and
WHEREAS, predictability in the cost of higher education is another important step to
improving affordability for students and families; and
WHEREAS, tuition predictability has historically been difficult to provide since
legislation governing the setting of tuition only covered a two year period precluding Ohio’s
public colleges and universities from setting tuition beyond each biennium; and
WHEREAS, Ohio Revised Code 3345.48 now authorizes universities to establish an
Undergraduate Tuition Guarantee Program that sets tuition for each new entering cohort for four
years; and
WHEREAS, the Miami University Board of Trustees has adopted the Miami University
Tuition Promise in accordance with Ohio Revised Code 3345.48 and intends to submit the rules
governing the plan to the Chancellor of the Ohio Department of Higher Education for approval;
and
WHEREAS, to assist prospective students and their families in their planning for
attending Miami University beginning with the fall of 2016, the University desires to set tuition
for degree-seeking students covered by the Miami University Tuition Promise and continuing
students who will continue to have tuition set annually; and
Attachment D
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Attachment Page 6 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
WHEREAS, the Ohio General Assembly has directed that Ohio’s public universities not
to increase tuition (instructional and general fees) for Ohio resident undergraduate students for
the 2015-16 and 2016-2017 academic years and the University intends to include the effect of the
tuition freeze for Ohio resident undergraduate degree-seeking students under the Miami
University Tuition Promise; and
WHEREAS, the Miami University Tuition Promise will cover four academic years with
the rate of increase for undergraduate students who are Ohio residents being a zero increase for
the first year (2016-2017) and a 2% increase in years two, three and four resulting in a weighted
overall increase of 2.74% for the four year period to be applied in year one with no further
increase in tuition for the remaining three years of the guarantee; and
WHEREAS, for non- Ohio resident undergraduate students a 2.0% increase was assumed
for all four years resulting in a 4.87% increase over the current, overall non-resident tuition rate;
and
WHEREAS, for continuing students who are Ohio residents there will be no tuition
increase for fall 2016 and for nonresident continuing students the basic instructional and general
fee will increase by 2%; and
WHEREAS, for continuing students the fall 2016 tuition rates are subject to increases in
future years;
NOW THERFORE BE IT ORDAINED: that the Miami University Board of Trustees
adopts the accompanying schedule for Tuition for undergraduates on the Oxford Campus,
effective Fall Semester 2016; and
BE IT FURTHER ORDAINED: that the accompanying schedule for tuition for summer
and winter terms for resident undergraduates on the Oxford campus shall be discounted by 20%
for online courses taken during these academic terms in accordance with the plan to “lower their
cost of attendance by at least five (5) percent;” and
BE IT FURTHER ORDAINED: that the guaranteed Tuition and Fees under the Miami
University Tuition Promise are contingent on the approval of Miami University’s Guaranteed
Tuition Program by the Chancellor of the Ohio Department of Education.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment D
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Attachment Page 7 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
Oxford Campus
Undergraduate Tuition
Fall 2016
Continuing Students
Ohio Residents
Academic Year Full-Time (12 or more credit hours per semester)
Semester-On Campus
2015-16
2016-17 % Change
$6,766.50 $6,766.50
Basic Instructional and General Fee
Other General Fees:
Technology Fee
114.00
Facilities Fee
60.00
Transit Fee
66.00
Armstrong Student Center Fee
110.00
Tuition
$7,116.50
114.00
60.00
66.00
110.00
$7,116.50
Semester-Off Campus
2015-16
2016-17 % Change
$6,766.50 $6,766.50
168.00
60.00
66.00
110.00
$7,170.50
0%
168.00
60.00
66.00
110.00
$7,170.50
0%
Academic Year Part-Time (Per credit hour up to 11 credit hours)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Tuition
Semester-On Campus
2016-17
$563.88
Semester-Off Campus
2016-17
$563.88
9.50
5.00
5.50
9.16
$593.04
14.00
5.00
5.50
9.16
$597.54
Summer and Winter Term- Part Time (Per credit hour)
Basic Instructional and General Fee
Armstrong Student Center Fee
Attachment D
2016-17
$535.60
9.16
$544.76
Overall Page 106 of 204
Attachment Page 8 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
Nonresidents
Academic Year Full-Time (12 or more credit hours per semester)
Semester-On Campus
2015-16
2016-17 % Change
$6,766.50 $6,766.50
Basic Instructional and General Fee
Other General Fees:
Technology Fee
114.00
114.00
Facilities Fee
60.00
60.00
Transit Fee
66.00
66.00
Armstrong Student Center Fee
110.00
110.00
Nonresident Surcharge
8349.90
8652.50
Tuition
$15,466.40 $15,769.00
Semester-Off Campus
2015-16
2016-17 % Change
$6,766.50 $6,766.50
168.00
168.00
60.00
60.00
66.00
66.00
110.00
110.00
8349.90
8652.50
$15,520.40 $15,823.00
1.96%
1.96%
Academic Year Part-Time (Per credit hour up to 11 credit hours)
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Nonresident Surcharge
Tuition
Semester-On Campus
2016-17
563.88
Semester-Off Campus
2016-17
$563.88
9.50
5.00
5.50
9.16
721.04
$1,314.08
14.00
5.00
5.50
9.16
721.04
$1,318.58
Summer and Winter Term- Part Time (Per Credit Hour)
Basic Instructional and General Fee
Armstrong Student Center Fee
Nonresident Surcharge
Attachment D
2016-17
$535.60
9.16
$721.04
$1,265.80
Overall Page 107 of 204
Attachment Page 9 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
Oxford Campus
Undergraduate Tuition
Fall 2016
Miami University Tuition Promise
Academic Year Full-Time (12 or more credit hours per semester)
Ohio Resident
Nonresident
Basic Instructional and General Fee
Other General Fees:
Technology Fee
Facilities Fee
Transit Fee
Armstrong Student Center Fee
Matriculation Fee
Nonresident Surcharge
Tuition
2015-2016 2016-17
$6,766.50 $6,963.00
141.00
60.00
66.00
110.00
28.00
N/A
$7,171.50
141.00
60.00
66.00
110.00
28.00
N/A
$7,368.00
% Change
2.74%
2015-2016 2016-17
$6,766.50 $6,963.00
141.00
141.00
60.00
60.00
66.00
66.00
110.00
110.00
28.00
28.00
8349.90
8909.50
$15,521.40 $16,277.50
% Change
4.87%
Academic Year Part-Time (Per credit hour up to 11 credit hours)
Ohio Resident
Nonresident
Basic Instructional and General Fee
Other General Fees:
Technology Fee1
Facilities Fee
Transit Fee
2
Armstrong Student Center Fee
Matriculation Fee
Nonresident Surcharge
Tuition
2016-207
$580.25
2016-2017
$580.25
11.75
5.00
5.50
9.16
2.33
N/A
$613.99
11.75
5.00
5.50
9.16
2.33
742.46
$1,356.45
1
The technology fee is no longer assessed at a different rate for on-campus and off-campus students. The average cost of the previous fee is unchanged.
2
The matriculation fee was previously billed separately as an orientation, alcohol education and graduation fee and not included in tution. For increased transparency
these fees are now being billed as part of tuition but at no increased cost to the student.
Attachment D
Overall Page 108 of 204
Attachment Page 10 of 11
Attachment D
Undergraduate Tuition
Ordinance
December 3, 2015
Summer and Winter Term- Part Time (Per credit hour)
Basic Instructional and General Fee
Armstrong Student Center Fee
Nonresident Surcharge
Attachment D
Ohio Resident
Nonresident
2016-17
$551.25
9.16
N/A
$560.41
2016-17
551.25
9.16
$742.46
1302.87
Overall Page 109 of 204
Attachment Page 11 of 11
Attachment E
Room and Board Presentation
December 3, 2015
December 3, 2015
Attachment E
Overall Page 110 of 204
Attachment Page 1 of 9
Attachment E
Room and Board Presentation
2016-17
December 3, 2015
2015-16
Miami
OSU
OU
UC
UD
Xavier
Indiana
$3,150
$3,065
$3,185
$3,215
$3,655
$3,150
$2,862
Renovated Double $3,550
$3,280
$3,394
N/A
N/A
$3,490
$3,272
New Double
$3,938
N/A
$3,698
$4,250
N/A
$4,048
Standard Double
Attachment E
$3,900
Overall Page 111 of 204
Attachment Page 2 of 9
Attachment E
Room and Board Presentation
December 3, 2015
2015-16
2016-17
Miami
OSU
OU
UC
UD
Xavier
Indiana
Minimum
$1,850
$1,850
$2,094
$2,160
N/A
$2,420
$2,650
Standard
$2,350
$2,258
$2,236
N/A
$2,440
$2,520
$3,250
Premium
$2,850
N/A
$3,088
N/A
N/A
N/A
$4,250
Attachment E
Overall Page 112 of 204
Attachment Page 3 of 9
Attachment E
Room and Board Presentation
2016-17
Miami
Standard Room +
Board +
Residential Fee $5,900
Attachment E
December 3, 2015
2015-16
OSU
OU
UC
UD
Xavier
Indiana
$5,323
$5,421
$5,375
$6,095
$5,670
$6,112
Overall Page 113 of 204
Attachment Page 4 of 9
Attachment E
Room and Board Presentation
December 3, 2015
Miami Tuition Promise
Ohio Guarantee
Type
2016-17
2015-16
Difference
Standard Double
$3,230
$3,185
$45
Renovated Double
$3,650
$3,394
$256
Minimum Meal Plan
$1,900
$2,104
($204)
Standard Meal Plan
$2,400
$2,247
$153
Premium Meal Plan
$2,925
$3,103
($178)
$400
$0
$400
Residential Fee
Attachment E
Overall Page 114 of 204
Attachment Page 5 of 9
Attachment E
Room and Board
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
Room and Board
Ordinance O2016-02
Returning Students
BE IT ORDAINED: that the Board of Trustees hereby establishes the following charges to be levied and collected for
returning undergraduate students beginning with the first semester of the academic year 2016-2017 unless otherwise
indicated; and
I. Residence Halls (per semester per student)
2015-16
2016-17
% change
A. Fall/Spring SemestersTraditional Halls (Non-renovated)
(A rate deduction of $150 per room per semester will be provided for non-air conditioned rooms)
Single
$4021
$4021
0.00%
Double
$2924
$3150
7.73%
Triple
$2879
$3100
7.68%
Quad
$2879
$3100
7.68%
Renovated Halls
Single
Double
Triple
$4275
$3150
$3014
$4275
$3550
$3200
0.00%
12.70%
6.17%
New Halls
Single
Double
Modified Double
Modified Triple
$4813
$3724
$3150
$3150
$4813
$3900
$3250
$3250
0.00%
4.73%
3.17%
3.17%
Miami Inn
$3961
$3961
0.00%
Heritage Commons
$4982
$4982
0.00%
2015-16
$1200
N/A
N/A
N/A
2016-17
N/A
$1850
$2350
$2850
% change
N/A
N/A
N/A
N/A
II. Meal Plans (per semester per student)
A. Diplomat Meal Plan
Most Common Declining Balance Meal Plan
Minimum
Standard
Premium
B. Summer
Envoy Account Meal Plan
III. Residential Fee
Fall and Spring Residents
Attachment E
$100 min. initial deposit
2015-16
$1625
Overall Page 115 of 204
$100 min. int. dep. N/A
2016-17
$400
% change
(-75.4%)
Attachment Page 6 of 9
Attachment E
Room and Board
December 3, 2015
IV. Residence & Meal Plan Comparison
(Common Experience)
Traditional Double + Board + Fee
Renovated Double + Board + Fee
New Double + Board + Fee
Miami Inn + Board + Fee
2015-16
$5749
$5975
$6549
$6786
2016-17
$5900
$6300
$6650
$6711
% change
2.63%
5.44%
1.54%
-1.11%
V. Summer Housing Weekly
Double Occupancy
Single Occupancy (double as single)
$117
$173
$122
$179
4.27%
3.47%
VI. Winter Term Housing Block Rate (24 days)
(Available for students enrolled in class)
$466
$466
0.00%
VII. Sorority Suites
Less than 800 sq. ft.
800-1,200 sq. ft.
1,200-1,300 sq. ft.
1,300-1,400 sq. ft.
1,400-1,500 sq. ft.
More than 1,500 sq. ft.
$2999
$5243
$5677
$6253
$7046
$7503
$2999
$5243
$5677
$6253
$7046
$7503
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Miami Tuition Promise Students
BE IT FURTHER ORDAINED: that the Board of Trustees further establishes the following charges to be levied for the
fall and spring 2016-2017 cohorts the following charges to be collected beginning first semester of the academic year
and to remain in effect for four (4) years as part of the Miami Tuition Promise unless otherwise indicated.
I. Residence Halls (per semester per student)
2015-16
2016-17
% change
A. Fall/Spring SemestersTraditional Halls (Non-renovated)
(A rate deduction of $150 per room per semester will be provided for non-air conditioned rooms)
Single
$4021
$4021
0.00%
Double
$2924
$3230
10.47%
Triple
$2879
$3175
10.28%
Quad
$2879
$3175
10.28%
Renovated Halls
Single
Double
Triple
$4275
$3150
$3014
$4275
$3650
$3275
0.00%
15.87%
8.66%
New Halls
Single
Double
Modified Double
Modified Triple
$4813
$3724
$3150
$3150
$4813
$4000
$3300
$3300
0.00%
7.41%
4.76%
4.76%
Miami Inn
$3961
$4000
0.98%
Heritage Commons
$4982
$4982
0.00%
Attachment E
Overall Page 116 of 204
Attachment Page 7 of 9
Attachment E
Room and Board
December 3, 2015
II. Meal Plans (per semester per student)
A. Diplomat Meal Plan
Most Common Meal Plan
Minimum
Standard
Premium
B. Summer
Envoy Account Meal Plan
2015-16
$1200
N/A
N/A
N/A
$100 min. initial deposit
2016-17
% change
$1900
$2400
$2925
$100 min. int. dep. N/A
III. Residential Fee
Fall and Spring Residents
2015-16
$1625
2016-17
$400
% change
(-75.4%)
IV. Residence & Meal Plan Fall/Spring Increase
(Common Experience)
Traditional Double + Board + Fee
Renovated Double + Board + Fee
New Double + Board + Fee
Miami Inn + Board + Fee
2015-16
$5749
$5975
$6549
$6786
2016-17
$6030
$6450
$6800
$6800
% change
4.89%
7.95%
3.83%
0.21%
V. Summer Housing Weekly
Double Occupancy
Single Occupancy (double as single)
$117
$173
$122
$179
4.27%
3.47%
VI. Winter Term Housing Block Rate (24 days)
(Available for students enrolled in class)
$466
$466
0.00%
VII. Sorority Suites
Less than 800 sq. ft.
800-1,200 sq. ft.
1,200-1,300 sq. ft.
1,300-1,400 sq. ft.
1,400-1,500 sq. ft.
More than 1,500 sq. ft.
$2999
$5243
$5677
$6253
$7046
$7503
$2999
$5243
$5677
$6253
$7046
$7503
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Attachment E
Overall Page 117 of 204
Attachment Page 8 of 9
Attachment E
Room and Board
December 3, 2015
All Students
VII. Residence Halls Room Refund Policy
The refund policy for room rent and residential fee for first and second semester will be as follows:
(1)
(2)
(3)
(4)
(5)
(6)
Withdrawal during the first five days of the term
100 % of room rent
Withdrawal during the sixth through eighth days of the term
90 % of room rent
Withdrawal during the ninth through twentieth days of the term
50 % of room rent
Withdrawal during the twenty-first through thirtieth days of the term
35 % of room rent
Withdrawal during the thirty-first through the fortieth days of the term 25 % of room rent
Withdrawal after fortieth day of the term
No Refund
The refund policy for room rent for the summer terms will be as follows:
(1)
(2)
(3)
(4)
Withdrawal during the first three days of the term
Withdrawal during the fourth through eighth days of the term
Withdrawal during the ninth through fifteenth days of the term
Withdrawal after the fifteenth day of the term
100% of room rent
50% of room rent
25% of room rent
No Refund
Provided further that no room rental charges will be returned upon withdrawal until thirty days have elapsed from the
date of withdrawal. In the event of an emergency, the Vice President for Finance and Business Services or his designee
is authorized to make exceptions to the above stated refund policy.
An advance Oxford Campus enrollment deposit of $330.00 and an admission fee of $95.00 are charged to all incoming
first year resident students. The $330.00 fee would be applied retroactively toward the student’s final term fees.
VIII. Meal Plan Change and Refund Policy
Diplomat dollars remaining at the end of each semester roll forward to the next semester. When a student moves off
campus, any remaining Diplomat dollars are converted to the Express Meal Plan for off campus students. Upon graduation
or withdrawal, any remaining Express Meal Plan or Diplomat declining balance dollars are forfeited. Meal Plan holders
who withdraw from the university on or before the fortieth day of the term will receive a refund of 80% of any remaining
Express Meal Plan or Diplomat declining balance dollars.
Diplomat Meal Plan holders are permitted to change their selected level until the 1st day of class during each
semester. Meal plan holders may continue to add additional money at any time, but are not permitted to lower their plan
level after the 1st day of class.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment E
Overall Page 118 of 204
Attachment Page 9 of 9
Attachment F
Endowment Administrative Fee
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
RESOLUTION R2016-15
WHEREAS: Miami University incurs certain expenses related to advancement
and investment management costs of the Miami University endowment fund; and
WHEREAS: Resolution R2011-65 currently authorizes the Miami University
endowment to reimburse Miami University for development and investment management
expenses incurred on its behalf by establishing an annual Administrative Fee to be
calculated against the previous fiscal year’s March 31st value of the endowment’s assets;
and
WHEREAS: Resolution R2011-65 also charged the Miami University Finance
and Audit Committee with the responsibility of annually reviewing the administrative fee
plan and rate; and
WHEREAS: The Miami University Finance and Audit Committee met and
discussed broadening the description of how the fee should be used to include any
advancement related expenses along with investment management related expenses; and
WHEREAS: The Miami University Finance and Audit Committee has determined
certain amendments to the Administrative Fee Plan are necessary to broaden the
description of the use of the fee; and
WHEREAS: The proposed Administrative Fee Plan is hereby attached;
NOW THEREFORE BE IT RESOLVED: The Miami University Board of
Trustees adopts the amended Administrative Fee Plan; and
BE IT FURTHER RESOLVED: Resolution R2011-65 is hereby rescinded.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment F
Overall Page 119 of 204
Attachment Page 1 of 2
Attachment F
Endowment Administrative Fee
December 3, 2015
MIAMI UNIVERSITY
Administrative Fee Plan
December 2015
OBJECTIVE
The objective of the Administrative Fee Plan is to reimburse Miami University to support
certain expenses related to the advancement and investment of the Miami University
endowment fund and annual fund.
REVENUE
An administrative fee of 1.00 percent will be calculated against the market value of the
Miami University endowment investment pool as of March 31st (in conjunction with the
annual spending distribution calculation). This amount will be distributed to the
University Education & General Fund before the end of the fiscal year and used to offset
certain costs incurred in that fiscal year as described below.
EXPENSES
The administrative fee revenue shall be used to offset expenses as follows:
•
•
Advancement: A portion of the Administrative Fee shall be used to fund
advancement related expenses including but not limited to the salaries, operating,
travel, and entertainment expenses of university advancement staff as determined
by the Vice President for University Advancement
Investment: A portion of the administrative fee shall be used to fund investment
related expenses, including but not limited to the salaries of finance and business
services staff related to investment and administration of endowment funds, travel
and registration expenses related to external investment manager meetings and
conferences, external audit fees, and external investment consulting fees as
determined by the Senior Vice President for Finance and Business Services
Any Administrative Fee balance not spent in the current fiscal year may be accumulated
and carried forward to a future fiscal year.
This plan and the administrative fee rate will be reviewed on an annual basis by the
Miami University Finance and Audit Committee.
Attachment F
Overall Page 120 of 204
Attachment Page 2 of 2
Attachment G
Lowering the Cost of Attendance Presentation
December 3, 2015
December 3, 2015
Attachment G
Overall Page 121 of 204
Attachment Page 1 of 15
Attachment G
Lowering the Cost of Attendance Presentation
December 3, 2015
All public colleges and universities in Ohio are to
develop and implement a plan to provide in-state,
undergraduate students the opportunity to reduce
their cost of earning a degree (cost of attendance)
by five (5) percent.
Attachment G
Overall Page 122 of 204
Attachment Page 2 of 15
Attachment G
Lowering the Cost of Attendance Presentation
Tuition and Fees
$14,288
Books and Supplies
1,140
Room and Board
11,644
Transportation and Miscellaneous
Subtotal
2,342
$29,414
Time to Graduate (First Time, Full Time)
Total Cost of Attendance
Attachment G
December 3, 2015
Overall Page 123 of 204
4.1years
$120,597
Attachment Page 3 of 15
Attachment G
Lowering the Cost of Attendance Presentation
December 3, 2015
Reduction in hours to graduate (4)
1.5%
Reduced online tuition for nonstandard terms
1.6%
Reduced textbook costs
1.0%
Increased scholarships
4.8%
8.9%
Attachment G
Overall Page 124 of 204
Attachment Page 4 of 15
Attachment G
Lowering the Cost of Attendance Presentation
December 3, 2015
Summary Table B
Pathways Leading to Reduced Time to Degree by 1-2 semesters
Option offered by the
institution
No Overload Fee - 16
Cr.Hrs.
- 32
Cr.Hrs.
Nonstandard Term- 16
Cr.Hrs.
- 32
Cr.Hrs.
College Credit Plus- 16
Cr.Hrs.
Blended Path**** - 16
Cr.Hrs.
- 32
Cr.Hrs.
Tuition
and Fee
Savings
(Dollar
Amount)
Room,
Board
and
Other
Savings
(Dollar
Amount)
Percentage
of Cost of
Attendance
Saved
Additional
Earnings***
(Dollar
Amount)
$7,144
$6,993
11.7%
$24,850
$14,288
$13,986
23.4%
0
$6,993
0
Total
Dollar
Savings
(Dollar
Amount)
Percentage
of Cost of
Attendance
Saved
$38,987
32.3%
$49,700
$77,974
64.7%
5.8%
$24,850
$31,843
26.4%
$13,986
11.6%
$49,700
$63,686
52.8%
$7,144
$6,993
11.7%
$24,850
$38,987
32.3%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
***Additional earnings are based on Payscale.com earnings information for Miami student early career earnings.
****The savings achieved per the Blended Path will vary from 26.4% to 65.0% depending on the actual pathway.
Attachment G
Overall Page 125 of 204
Attachment Page 5 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
BOARD OF TRUSTEES
ROUDEBUSH HALL ROOM 212
OXFORD, OHIO 45056
(513) 529-6225 MAIN
(513) 529-3911 FAX
WWW.MIAMIOH.EDU
December 4, 2015
Finance and Audit
RESOLUTION R2016-13
WHEREAS, House Bill 64 Section 369.600 required all public colleges and universities,
in Ohio to prepare plans that offer students the opportunity to lower their cost of earning a degree
by at least five (5) percent; and
WHEREAS, President Hodge appointed a committee chaired by Amit Shukla and
Christopher Makaroff to draft a plan for Miami University; and
WHEREAS, the plan prepared by the committee has been shared with the University
Senate and through university forums for further input; and
WHEREAS, the plan was reviewed with the Finance and Audit Committee of the Board
of Trustees at their September meeting prior to being submitted to the Chancellor of the Ohio
Department of Higher Education on October 15, 2015; and
WHEREAS, the Chancellor has requested that the boards of trustees at Ohio’s public
colleges and universities formally adopt the plans that have been developed;
NOW THEREFORE BE IT RESOLVED, the Miami University Board of Trustees adopts
the plan attached hereto “Opportunity to Lower the Cost of Attending Miami University;” and
BE IT FURTHER RESOLVED, that the Miami University Board of Trustees directs the
university’s administration to proceed to implement the plan; and
BE IT FURTHER RESOLVED, that the Miami University Board of Trustees directs that
the Chancellor of the Ohio Department of Higher Education be informed of the adoption of the
plan.
Approved by the Board of Trustees
December 4, 2015
T. O. Pickerill II
Secretary to the Board of Trustees
Attachment G
Overall Page 126 of 204
Attachment Page 6 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
Opportunity to Lower the Cost of Attending
Miami University
Name of Institution: Miami University
Legislative Requirements
House Bill 64 Section 369.600 requires all public colleges and universities in Ohio to develop and
implement a plan to provide in-state, undergraduate students the opportunity to reduce their
cost of earning a degree (or cost of attendance) by five percent.
Plans are due to the Chancellor by October 15, 2015. The following is the Miami University plan.
Miami University Background and Student Profile
Miami University and the State of Ohio have enjoyed a successful partnership for 206 years.
Miami’s vision is to provide the best undergraduate experience in the nation, enhanced by
superior, select graduate programs. Students are immersed in high-quality academic and cocurricular experiences. Miami is a residential university with faculty who are dedicated to
learning and discovery. A liberal education core provides the foundation for the more specialized
major studies. Miami offers bachelor’s degrees in 120 areas of study.
Miami University, on its Oxford campus, attracts a highly motivated and driven student body that
has an average ACT score of 28 with 33% of the entering class scoring a 30 or higher. About 37%
of Miami’s entering first year students already have college credit with the average credit hours
completed exceeding 17 or slightly more than one semester. Entering freshmen enroll for an
average of 15.7 credit hours, and 91% of our first year students are retained into their sophomore
year. Miami’s four-year graduation rate of 68.3% ranks 13th among all public colleges and
universities in the U.S. and 1st among public universities in Ohio.
Miami is one of 11 Ohio colleges and universities sharing a five-year, $3.5 million National Science
Foundation grant to help increase underrepresented student success in science, technology,
engineering, and mathematic (STEM) disciplines. The Miami Access Initiative ensures that
academically competitive students from an Ohio Family with an income of $35,000 or less pay no
tuition and fees. For the fall 2015 class all entering students with financial need received offers
of financial aid.
The average time to a degree for an entering first year student at Miami is 4.1 years or the
shortest for any public university in Ohio. Students also pay no additional tuition for credit hours
1
Attachment G
Overall Page 127 of 204
Attachment Page 7 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
enrolled beyond 12 per semester, making their degrees more affordable and attainable in a
shorter time period.
Miami students not only graduate faster but also actively participate in study abroad,
undergraduate research and other activities, including double majors and minors. The average
number of credit hours completed at graduation is 153. With about 38% of Miami undergraduate
students studying abroad by the time they graduate, Miami is ranked 2nd among public doctoral
institutions nationwide. Approximately 64% of Miami students are involved in internships, field
work or co-ops and 39% are engaged in independent research.
In other words, Miami’s students accomplish a great deal in their four years which makes them
extremely attractive to prospective employers, as well as to professional and graduate schools.
Nearly twice as many employers recruit at Miami as at other universities its size. PayScale.com
ranked Miami 41st in the nation for mid-career salary potential. Miami graduates applying to
medical school are accepted 62% of the time as compared to 45% nationally. Acceptance to law
school is 94% compared to an 83% national average.
Reducing Cost of Attendance: Our Approach
As already noted, Miami’s student profile differs from most other public colleges and universities.
Our students are academically better prepared than at most other public universities; they arrive
with more college credit already completed; they enroll in a larger course load each semester;
they graduate with more credit hours and accomplishments that include multiple majors, minors
and other experiences, and they graduate within four years at a rate faster than almost all other
public universities and faster than any other Ohio public university. As ideas for accomplishing
the mandate legislated by House Bill 64 were considered, ideas that aligned best with the goals
of students enrolling at Miami were adopted and included in this proposal.
The plan developed in response to the legislative mandate has been divided into two
components: options for students that directly lower the cost of attending Miami and options
that enable a student to graduate within three (3) years or 3.5 years. Both components
individually exceed the target that was legislated and greatly exceed the target collectively. The
added advantage of the changes that will better enable students to graduate one or two
semesters early is that these students will not only lower their cost of attendance but accelerate
their employment and earnings opportunities. The improved earnings from early graduation
further enhance the financial benefit of this option for students. This outcome also provides
enhanced benefits for the State of Ohio as those students who graduate earlier become
contributors to Ohio’s economy faster.
Because the second part of this proposal, which is a shortened time to graduation, is not as easily
summarized under the form developed by the Department of Higher Education for presenting an
institution’s proposal, the following is provided to better explain the options for accelerating
graduation and the financial benefits that would accrue to students achieving early graduation.
2
Attachment G
Overall Page 128 of 204
Attachment Page 8 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
Already over 60% of all majors offered at Miami include a 3-year path to degree completion.
Better advising and other support services identify these pathways and help students stay on a
course to graduate within a shortened time frame. Effective, proactive and personalized advising
is a key to student success, and our approach is to provide opportunities for student success
based on their goals and aspirations.
Three pathways already exist at Miami University for graduating in a shorter time frame: no
tuition for credit hours enrolled above 12, significant college credit earned before enrolling at
Miami and the completion of far more hours towards graduation than the minimum required. In
addition to these existing pathways, the following improvements will be provided to students to
better communicate these options and to better support students who desire to graduate in less
than four years, or the 4.1 years that is the average time to a degree today.
1. Utilize data-driven, predictive modeling programs in conjunction with more
intentional/proactive and personalized advising to better ensure students are on a
timely path to graduate. These advising sessions will assist students in selecting an
appropriate major and path to graduation including options for accelerated
graduation. Students “at risk” to graduate or to stay on an accelerated path to
graduation will benefit from being identified early and offered additional resources
and support to assist them in achieving their graduation goal.
2. Offer highly demanded and bottleneck courses during nonstandard terms, such as
winter and summer. These critical courses will be available in multiple formats
including hybrid or online modes. The increased availability and flexibility of these
key courses will provide an alternate path for students to graduate early.
Additionally, this will help those students who get off a timely graduation schedule,
perhaps due to a change in major, to get back on schedule and graduate on time.
During these terms, courses will be offered at a subsidized or a reduced tuition rate
(20%) to encourage participation and make accelerated paths to graduation even
more affordable. Also, this will allow Miami to utilize academic resources and
university facilities more efficiently throughout the summer and during periods
between semesters.
3. Improve student familiarity with existing options that offer them the opportunity to
graduate earlier. Miami is one of only two public colleges and universities in Ohio
that assesses no fee for credit hours enrolled above twelve (12). Students enrolling
in 18 credit hours per term can graduate one semester early, which lowers their cost
of attendance by at least 12%. By enrolling in just one course (3 credit hours) during
each of the “nonstandard: terms, a Miami student can also reduce their time to
graduation by a full semester; this lowers the cost of attendance by about 12% as
well. About 37% of Miami’s entering first year students have an average of more
than 17 hours of college credit already earned. These students, through utilization of
either or both overload credit and nonstandard terms, have the potential to reduce
3
Attachment G
Overall Page 129 of 204
Attachment Page 9 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
their time to graduate by an entire year lowering their cost of attendance by 24% or
more.
Additionally, college affordability can be further improved if State of Ohio can incentivize student
behavior by reforming Ohio College Opportunity Grant to reward those students who enroll for
enough credit hours to reflect graduation in four years or less. At the institutional level, Miami
University will implement a comprehensive suite of loan counseling tools to assist and inform
students of their overall loan indebtedness. Some examples of these tools include:
• Clear, bi-annual presentation of students’ total loan debt to-date and estimated
monthly repayment costs.
• Display of loan indebtedness prior to accepting their loans for the school year.
• Data-driven, targeted outreach to students who have borrowed in excess of
“standard” or “normal” limits in their first and second years.
While the changes just summarized will better enable Miami to support students who desire to
graduate faster, it is important to remember that many students prefer to stay for all four years
than graduate sooner because of the enhanced value these added educational experiences offer
them. However, options that expand the pathways for students to graduate earlier also can
provide improved scheduling flexibility for students who prefer to enrich their educational
experience in other ways. In other words, all students will benefit by these improvements
whether they use them to accelerate graduation or to further enrich their educational
experience.
Total Cost of Attendance at Institution
Please provide a breakdown of average tuition, fees, room, board, textbooks, etc, for a full-time student,
living on campus. (Add explanation as necessary)
Type of Cost
Average Cost (Dollar Amount)
Total Cost of Attendance
Tuition and Fees
Books and Supplies
Room and Board
Transportation and Miscellaneous
Total
Time to Graduation (First-Time, Full-Time)
Total:
$14,288
$1,140
$11,644
$2,342
$29,414
4.1 years
$120,597
Outline Options for reducing costs:
4
Attachment G
Overall Page 130 of 204
Attachment Page 10 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
(1) Reducing the credit hours required to complete a baccalaureate degree offered by the
institution
Cost savings to student
(Dollar Amount)
$1,786
Option offered by the institution
Reduce hours to graduate by four (4).
Percentage of total
cost of attendance
1.5%
(2) Offering a tuition discount or rebate to any student that completes a full load of
coursework, as determined by the board of trustees. ("Tuition" means the instructional and
general fees charged by a state institution of higher education.)
Cost savings to student
Option offered by the institution
(Dollar Amount)
No options recommended since students
already enroll for an average of 15.7 credit
N/A
hours in their freshman year
Percentage of total
cost of attendance
N/A
(3) Offering a tuition discount or rebate or reduced tuition option to students enrolling in a
summer or winter term (nonstandard term). ("Tuition" means the instructional and general
fees charged by a state institution of higher education.)
Cost savings to student
Option offered by the institution
(Dollar Amount)
Reduce summer and winter term online tuition
$1,928
by 20% (assume 18 credit hours completed).
Percentage of total
cost of attendance
1.6%
(4) Offering online courses or degrees
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
Make highly demanded and bottleneck courses
available for summer and winter terms in
online, flexible format.
See Summary Table B
See Summary Table B
(5) Reducing the cost of textbooks using cost-saving measures identified and implemented by
the board of trustees
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
$701
0.6%
$467
0.4%
$1,168
1.0%
Shift textbook sales from on-campus store to
online provider.
Move 10% of course sections to open
educational resources.
Total
(6) Incorporation of remediation in the coursework and curriculum of credit-bearing courses
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
Remedial coursework is not offered by Miami at
its Oxford Campus.
N/A
N/A
5
Attachment G
Overall Page 131 of 204
Attachment Page 11 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
(7) Offering a fixed rate of instructional and general fees for any additional credits taken by
students above a full course load, as determined by the board of trustees
Option offered by the institution
All credit hours above 12 are at no additional
cost.
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
See Summary Table B
See Summary Table B
(8) Offering fast-track degree completion programs
Option offered by the institution
Over 60% of all undergraduate degrees can be
completed in three (3) years.
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
See Summary Table B
See Summary Table B
(9) Eliminating, reducing or freezing auxiliary fees ("Auxiliary fees" mean charges assessed by a
state institution of higher education to a student for various educational expenses including, but not
limited to, course-related fees, laboratory fees, books and supplies, room and board, transportation,
enrollment application fees, and other miscellaneous charges. "Auxiliary fees" do not include
instructional or general fees uniformly assessed to all students.)
Cost savings to student
Percentage of total
Option offered by the institution
(Dollar Amount)
cost of attendance
Provide a tuition guarantee to all degree
See Summary Table B
See Summary Table B
seeking students.
Provide reduced room costs to students during
See Summary Table B
See Summary Table B
summer and winter terms.
(10)
Increased participation in the college credit plus program
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
Average credit hours completed grew from 16.9
to 17.4 in fall 2015.
See Summary Table B
See Summary Table B
(11)
Offering programs to reduce or eliminate the need for remediation coursework
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
N/A
N/A
Students do not enroll in remediation
coursework on the Oxford campus.
(12) Other options offered by the institution - Increase student scholarships with an
emphasis on need based student financial aid.
6
Attachment G
Overall Page 132 of 204
Attachment Page 12 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
Option offered by the institution
Cost savings to student
(Dollar Amount)
Percentage of total
cost of attendance
Additional (new) student financial aid offered to
students entering in fall 2015.
$1,344 (per student)
1.1%
Options offered in previous academic years:
Please be sure to quantify savings as they roll forward into the current academic year. (For
instance, a tuition freeze last year would result in $X and Y% cost avoidance to students in this
academic year). Add additional fields and details as necessary.
(13)
Academic Year 2013-2014
Option offered by the institution
Additional (new) student financial aid offered to
students entering in fall 2013
(14)
Cost savings to student
(Dollar Amount)
$4,119 (per student)
Percentage of total
cost of attendance
3.4%
Cost savings to student
(Dollar Amount)
$31 (per student)
Percentage of total
cost of attendance
0.03%
Academic Year 2014-2015
Option offered by the institution
Additional (new) student financial aid offered to
students entering in fall 2014
7
Attachment G
Overall Page 133 of 204
Attachment Page 13 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
Total Possible Cost Savings for Students
Without Early Graduation Option
Summary Table A
Recommendations Leading to Direct Reductions in the Cost of Attendance
Cost savings to student
Percentage of total
Option offered by the institution
(Dollar Amount)
cost of attendance
1. Reduction in credit hours to graduate.
$1,786
1.5%
2. Rebate for full load.
N/A
N/A
3. Tuition discount for nonstandard terms.
$1,928
1.6%
4. Online courses and degrees.
N/A*
N/A*
5. Reducing the costs of textbooks.
$1,168
1.0%
6. Remediation coursework.
N/A
N/A
7. Reduction for course overload.
N/A*
N/A*
8. Fast-track degree completion.
N/A*
N/A*
9. Eliminating, reducing or freezing auxiliary fees.
N/A*
N/A*
10. Increased participation in College Credit Plus
N/A*
N/A*
program.
11. Reduce or eliminate need for remediation
N/A
N/A
coursework.
12. Increase in student scholarships for students
$1,,344
1.1%
enrolling in fall 2015 and later.
13. Academic Year 2013-2014
$4,119
3.4%
14. Academic Year 2014-2015
$31
0.03%
Total
$10,375
8.6%
*Options for achieving these savings are being made available to help shorten a student’s time to
degree. The calculation of the dollars and percentage savings from these options are summarized under
Summary Table B.
8
Attachment G
Overall Page 134 of 204
Attachment Page 14 of 15
Attachment G
Opportunities to Lower the Cost of a Degree
Resolution
December 3, 2015
Total Possible Cost Savings for Students (continued)
Early Graduation Option**
Summary Table B
Pathways Leading to Reduced Time to Degree by 1-2 semesters
Option offered by the
institution
No Overload Fee - 16
Cr.Hrs.
- 32
Cr.Hrs.
Nonstandard Term- 16
Cr.Hrs.
- 32
Cr.Hrs.
College Credit Plus- 16
Cr.Hrs.
Blended Path**** - 16
Cr.Hrs.
- 32
Cr.Hrs.
Tuition
and Fee
Savings
(Dollar
Amount)
Room,
Board
and
Other
Savings
(Dollar
Amount)
Percentage
of Cost of
Attendance
Saved
Additional
Earnings***
(Dollar
Amount)
$7,144
$6,993
11.7%
$24,850
$14,288
$13,986
23.4%
0
$6,993
0
Total
Dollar
Savings
(Dollar
Amount)
Percentage
of Cost of
Attendance
Saved
$38,987
32.3%
$49,700
$77,974
64.7%
5.8%
$24,850
$31,843
26.4%
$13,986
11.6%
$49,700
$63,686
52.8%
$7,144
$6,993
11.7%
$24,850
$38,987
32.3%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
**The following savings are in addition to the savings summarized in Table A. Each option for early
graduation offers a unique cost savings for the student.
***Additional earnings are based on Payscale.com earnings information for Miami student early career
earnings.
****The savings achieved per the Blended Path will vary from 26.4% to 65.0% depending on the actual
pathway.
9
Attachment G
Overall Page 135 of 204
Attachment Page 15 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
Miami University
Finance and Audit Committee
FY 2016 Forecasted Operating Results
Projections Based upon Activity through September 30, 2015
OXFORD
The projection for the Oxford General Fund based on performance through September is a
surplus of approximately $26.8 million. Details of the specific items are highlighted below.
Revenues
The Oxford campus student fee revenues (instructional, general, out-of-state, and other) are
forecast to be approximately $7.3 million over the $381.6 million budget. Gross instructional
revenue (including the out-of-state surcharge) is forecast to be $7.1 higher than budget and financial
aid is forecast to be on budget. The projections include billing from summer and fall. The favorable
performance compared to budget is attributable to a larger than expected incoming class, improved
retention rates for continuing students and more ACE students than assumed in the budget. The
forecast may change based on the final performance of the winter, spring, and summer of calendar
year 2016 terms.
The forecast for the Oxford campus state appropriations are forecast to be $2.5 million over
the $58.5 million budget. The original university budget was based on the Governor’s introduced
budget. The estimates included in this report are based on the final Conference Committee budget
signed by the Governor which incorporated additional resources to help offset the impact of the
state imposed tuition freeze on resident tuition. Revised assumptions for the state appropriation are
expected to become available in December once revisions have been made by the Ohio Department
of Higher Education that incorporate updated degree and enrollment information from each of the
campuses.
Investment income booked through September 30, 2014 was approximately $336,500. This
amount does not include an estimate of the year end mark-to-market, which is difficult to predict at
this time. If we had marked the portfolio to market as of September 30, an unrealized loss of
$7,501,000 would have been recorded. Given the volatility of the current market, this number could
change as the year progresses. Therefore, we are forecasting investment income to be equal to
budget.
Other revenue categories are projected as budgeted.
Expenditures and Transfers
Employee salaries and staff benefits are projected to on budget. The healthcare expense is
also projected on budget. Through the first three months of the fiscal year medical claims, including
high cost claims, were lower than budget. Prescription drugs costs for regular claims were below
budget while high cost claims for prescription drugs were slightly above budget. Healthcare
expense is difficult to estimate due to the volatility of high cost claims. Graduate assistant fee
waivers were less than budgeted for fall term resulting in a year end projection of $537,500 below
the $30.8 million budget.
Attachment H
Overall Page 136 of 204
Attachment Page 1 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
Savings in departmental support expenditures and salaries are projected on budget; therefore
the forecast does not include a transfer to departmental budgetary carryforward. At the end of FY15,
departments on the Oxford Campus underspent these categories by $12.3 million.
Beginning with this report, the operating unit financial analysis table has been amended to
show the Dolibois European Center in Luxemburg as a separate operational unit. The Dolibois
European Center has a budget of $2 million, with $1.6 million allocated for salaries and benefits
and $386,220 allocated for utilities and other support costs. While the Dolibois European Center is
not a responsibility center under the new budget model, the Center generated gross instructional
revenue of $2.3 million in FY15 and is forecast to generate $2.5 million in FY16.
HAMILTON & MIDDLETOWN
The Hamilton campus student fee revenue (instructional, out-of-state, general, and other) is
estimated to be $1.5 below budget. The instructional fee, out-of-state surcharge, general fee and
other student revenue for the Middletown campus are forecast to be $384,587 above budget. The
performance of Middletown revenues is attributable to higher than budget enrollments by
international students. Expenditures on both campuses are currently forecast on budget.
The state subsidy for the Hamilton is expected to be $9,091 below budget and Middletown
campuses forecast to be $252,248 above budget based on the state Conference Committee adopted
state budget. As noted above, the forecast will be updated in December when the Ohio Board of
Regents provides revised mid-year estimates for the fiscal year.
Overall, the General Fund for Hamilton is projected to end the fiscal year with a $1.8 million deficit
while the Middletown campus is projected to have an operating surplus of approximately $636,836.
VOICE OF AMERICA LEARNING CENTER
The Voice of America Learning Center (VOALC) is projected to end the fiscal year on
budget. As in the prior fiscal year, the funding support for the VOALC has been separately
displayed for all three campuses and the VOALC. This transfer represents the budgeted financial
support from each campus for funding the VOALC administrative operations.
Attachment H
Overall Page 137 of 204
Attachment Page 2 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
FY2016 Forecast
Oxford General Fund Only
As of September 30, 2015
September
End-of-Year
Forecast
Original
Budget
REVENUES:
Instructional & OOS Surcharge
Less Cohort Financial Aid Discount
Net Instructional Fee & Out-of-State Surcharge
General
Other Student Revenue
Tuition, Fees and Other Student Charges
September
Budget to
Forecast
$ 340,112,881
$ 58,947,656
$ 281,165,225
$ 32,539,258
$
3,601,500
$ 317,305,983
$ 347,252,223 $
$ 58,947,656 $
$ 288,304,567 $
$ 32,724,106 $
$
3,601,500 $
$ 324,630,173 $
7,139,342
7,139,342
184,848
7,324,190
$ 58,489,038
$
4,325,000
$
1,444,000
$ 381,564,021
$ 60,978,762
$
4,325,000
$
1,444,000
$ 391,377,935
$
$
$
$
2,489,724
9,813,914
EXPENDITURES:
Salaries
Benefits
Healthcare Expense
Graduate Assistant, Fellowships & Fee Waivers
Undergraduate Scholarships & Student Waivers
Utilities
Departmental Support Expenditures
Multi-year Expenditures
Total Expenditures
$ 168,085,747
$ 32,480,774
$ 29,545,024
$ 30,779,703
$ 12,608,758
$ 13,314,644
$ 27,883,845
$
5,671,742
$ 320,370,237
$ 168,085,747
$ 32,480,774
$ 29,545,024
$ 30,242,203
$ 12,608,758
$ 13,314,644
$ 27,883,845
$
5,671,742
$ 319,832,737
$
$
$
$
$
$
$
$
$
DEBT SERVICE AND TRANSFERS:
General Fee
Capital, Renewal & Replacement
Debt Service
Support for VOALC (50%)
Other Miscellaneous Operational Transfers
Total Debt Service and Transfers
$ (30,151,928) $ (30,151,928) $
$
(7,980,000) $
(7,980,000) $
$
(5,222,213) $
(5,222,213) $
$
(577,383) $
(577,383) $
$
(849,727) $
(849,727) $
$ (44,781,251) $ (44,781,251) $
Net Revenues/(Expenditures) Before Adjustments
$
ADJUSTMENTS:
Departmental Budgetary Savings
Departmental Budgetary Carryforward
Reserve for Investment Fluctuations
Reserve for Future Budgets
$
$
$
$
State Appropriations
Investment Income
Other Revenue
Total Revenues
Net Increase/(Decrease) in Fund Balance
Attachment H
$
16,412,533
16,412,533
Overall Page 138 of 204
$
$
$
$
$
$
26,763,947
-
$
$
$
$
$
26,763,947
$
(537,500)
(537,500)
10,351,414
10,351,414
Attachment Page 3 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
FY2016 Forecast
Hamilton General Fund Only
As of September 30, 2015
September
End-of-Year
Forecast
Original
Budget
REVENUES:
Instructional & OOS Surcharge
Less Continuing & New Scholarships
Net Instructional Fee & Out-of-State Surcharge
General
Other Student Revenue
Tuition, Fees and Other Student Charges
September
Budget to
Forecast
$
$
$
$
$
$
18,297,106
723,638
17,573,468
1,072,238
193,500
18,839,206
$
$
$
$
$
$
17,301,506
1,138,593
16,162,913
1,004,831
193,500
17,361,244
$
$
$
$
$
$
(995,600)
414,955
(1,410,555)
(67,407)
(1,477,962)
$
$
$
$
7,134,467
50,000
79,500
26,103,173
$
$
$
$
7,125,376
50,000
79,500
24,616,120
$
$
$
$
(9,091)
(1,487,053)
EXPENDITURES:
Salaries
Allowance for Unspent Salaries
Benefits
Allowance for Unspent Benefits
Healthcare Expense
Graduate Assistant Fee Waivers
Utilities
Departmental Support Expenditures
Multi-year Expenditures
Total Expenditures
$
$
$
$
$
$
$
$
$
$
14,148,308
(552,558)
2,649,355
(206,325)
2,222,218
696,000
4,895,627
23,852,625
$
$
$
$
$
$
$
$
$
$
14,148,308
(552,558)
2,649,355
(206,325)
2,222,218
696,000
4,895,627
23,852,625
$
$
$
$
$
$
$
$
$
$
-
DEBT SERVICE AND TRANSFERS:
General Fee
Capital, Renewal & Replacement
Unrestricted Allocated Funds
Debt Service
Support for VOALC (25%)
Support for Middletown
Other Miscellaneous Operational Transfers
Total Debt Service and Transfers
$
$
$
$
$
$
$
$
(435,461)
(288,691)
(1,827,697)
(2,551,849)
$
$
$
$
$
$
$
$
(435,461)
(288,691)
(1,827,697)
(2,551,849)
$
$
$
$
$
$
$
$
-
Net Revenues/(Expenditures) Before Adjustments
$
(301,301) $
(1,788,354) $
ADJUSTMENTS:
Departmental Budgetary Savings
Departmental Budgetary Carryforward
Reserve for Investment Fluctuations
Reserve for Future Budgets
$
$
$
$
-
-
$
(301,301) $
State Appropriations
Investment Income
Other Revenue
Total Revenues
Net Increase/(Decrease) in Fund Balance
Attachment H
Overall Page 139 of 204
$
$
$
$
$
$
$
$
(1,788,354) $
(1,487,053)
(1,487,053)
Attachment Page 4 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
FY2016 Forecast
Middletown General Fund Only
As of September 30, 2015
September
End-of-Year
Forecast
Original
Budget
REVENUES:
Instructional & OOS Surcharge
Less Continuing & New Scholarships
Net Instructional Fee & Out-of-State Surcharge
General
Other Student Revenue
Tuition, Fees and Other Student Charges
September
Budget to
Forecast
$
$
$
$
$
$
11,250,720
865,638
10,385,082
630,283
80,700
11,096,065
$
$
$
$
$
$
11,477,799
677,675
10,800,124
599,828
80,700
11,480,652
$
$
$
$
$
$
227,079
(187,963)
415,042
(30,455)
384,587
$
$
$
$
4,753,491
50,000
70,402
15,969,958
$
$
$
$
5,005,739
50,000
70,402
16,606,793
$
$
$
$
252,248
636,835
EXPENDITURES:
Salaries
Allowance for Unspent Salaries
Benefits
Allowance for Unspent Benefits
Healthcare Expense
Graduate Assistant Fee Waivers
Utilities
Departmental Support Expenditures
Multi-year Expenditures
Total Expenditures
$
$
$
$
$
$
$
$
$
$
10,554,776
(977,394)
2,115,923
(377,274)
1,581,503
453,500
3,745,301
17,096,335
$
$
$
$
$
$
$
$
$
$
10,554,776
(977,394)
2,115,923
(377,274)
1,581,503
453,500
3,745,301
17,096,335
$
$
$
$
$
$
$
$
$
$
-
DEBT SERVICE AND TRANSFERS:
General Fee
Capital, Renewal & Replacement
Unrestricted Allocated Funds
Debt Service
Support for VOALC (25%)
Support From Hamilton
Other Miscellaneous Operational Transfers
Total Debt Service and Transfers
$
$
$
$
$
$
$
$
(157,837)
(254,792)
(288,691)
1,827,697
1,126,377
$
$
$
$
$
$
$
$
(157,837)
(254,792)
(288,691)
1,827,697
1,126,377
$
$
$
$
$
$
$
$
-
Net Revenues/(Expenditures) Before Adjustments
$
-
$
636,835
$
ADJUSTMENTS:
Departmental Budgetary Savings
Departmental Budgetary Carryforward
Reserve for Investment Fluctuations
Reserve for Future Budgets
$
$
$
$
-
$
$
$
$
$
-
$
State Appropriations
Investment Income
Other Revenue
Total Revenues
Net Increase/(Decrease) in Fund Balance
Attachment H
Overall Page 140 of 204
636,835
$
$
$
$
$
636,835
636,835
Attachment Page 5 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
FY2016 Forecast
Voice of America Learning Center General Fund Only
As of September 30, 2015
September
End-of-Year
Forecast
Original
Budget
REVENUES:
Instructional & OOS Surcharge
Less Continuing & New Scholarships
Net Instructional Fee & Out-of-State Surcharge
General
Other Student Revenue
Tuition, Fees and Other Student Charges
September
Budget to
Forecast
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
$
35,000
35,000
$
$
$
$
EXPENDITURES:
Salaries
Benefits
Healthcare Expense
Graduate Assistant Fee Waivers
Utilities
Departmental Support Expenditures
Multi-year Expenditures
Total Expenditures
$
$
$
$
$
$
$
$
230,955
48,982
44,555
59,900
288,323
672,715
$
$
$
$
$
$
$
$
230,955
48,982
44,555
59,900
288,323
672,715
$
$
$
$
$
$
$
$
DEBT SERVICE AND TRANSFERS:
General Fee
Capital, Renewal & Replacement
Unrestricted Allocated Funds
Debt Service
Support for VOALC Transfers
Other Miscellaneous Operational Transfers
Total Debt Service and Transfers
$
$
$
$
$
$
$
(35,300)
(481,750)
1,154,765
637,715
$
$
$
$
$
$
$
(35,300)
(481,750)
1,154,765
637,715
$
$
$
$
$
$
$
-
Net Revenues/(Expenditures) Before Adjustments
$
-
$
-
$
-
ADJUSTMENTS:
Departmental Budgetary Savings
Departmental Budgetary Carryforward
Reserve for Investment Fluctuations
Reserve for Future Budgets
$
$
$
$
-
$
$
$
$
-
$
$
$
$
-
$
-
$
-
$
-
State Appropriations
Investment Income
Other Revenue
Total Revenues
Net Increase/(Decrease) in Fund Balance
Attachment H
Overall Page 141 of 204
-
$
$
$
$
$
$
$
$
35,000 $
35,000 $
-
-
-
Attachment Page 6 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - by Operational Unit
FY2016 / FY2015 / FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
College of Arts & Sciences
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
48,100,556
12,682,905
9,103,717
4,221,714
74,108,892
$
$
$
$
$
49,577,235
13,531,242
8,688,453
2,887,680
74,684,610
$
$
$
$
$
53,009,961
17,854,044
10,674,846
7,121,064
88,659,915
$
$
$
$
$
8,049,115
2,690,917
1,647,200
1,024,830
13,412,062
$
$
$
$
$
7,871,880
2,584,750
17,008
660,226
11,133,864
$
$
$
$
$
7,680,308
2,475,375
2,215,325
817,022
13,188,030
15%
15%
15%
14%
15%
2%
4%
9585%
55%
20%
College of Education, Health, and Society
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
12,132,366
3,149,679
1,716,761
1,474,216
18,473,022
$
$
$
$
$
12,660,948
3,555,743
1,607,878
1,051,840
18,876,409
$
$
$
$
$
13,618,903
4,683,030
2,091,474
2,545,220
22,938,627
$
$
$
$
$
2,103,125
710,788
230,385
315,014
3,359,312
$
$
$
$
$
2,146,911
710,512
32,788
169,155
3,059,366
$
$
$
$
$
2,040,818
997,543
171,540
3,209,901
15%
15%
11%
12%
15%
-2%
0%
603%
86%
10%
College of Engineering and Computing
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
6,565,594
1,879,312
619,839
697,737
9,762,482
$
$
$
$
$
6,622,190
1,954,333
505,709
525,757
9,607,989
$
$
$
$
$
6,617,666
2,482,294
597,564
611,159
10,308,683
$
$
$
$
$
1,275,507
462,855
38,093
172,133
1,948,588
$
$
$
$
$
1,222,997
433,277
96,048
1,752,322
$
$
$
$
$
1,203,179
492,644
242,678
1,938,501
19%
19%
6%
28%
19%
4%
7%
0%
79%
11%
Farmer School of Business
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
17,708,566
6,002,199
505,930
2,036,979
26,253,674
$
$
$
$
$
20,391,366
5,990,636
494,014
1,176,750
28,052,766
$
$
$
$
$
19,570,620
7,587,531
896,346
3,301,666
31,356,163
$
$
$
$
$
3,936,878
1,364,967
36,306
471,929
5,810,080
$
$
$
$
$
3,695,872
1,255,111
282,033
5,233,016
$
$
$
$
$
3,284,111
1,167,077
84
252,134
4,703,406
20%
18%
4%
14%
19%
7%
9%
0%
67%
11%
College of Creative Arts
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
8,985,802
2,481,081
1,385,329
1,471,030
14,323,242
$
$
$
$
$
9,117,628
2,692,484
1,273,236
722,677
13,806,025
$
$
$
$
$
9,629,033
3,523,179
1,548,234
1,202,567
15,903,013
$
$
$
$
$
1,506,962
529,340
180,875
235,651
2,452,828
$
$
$
$
$
1,499,735
516,532
1,607
118,539
2,136,413
$
$
$
$
$
1,469,665
497,014
213,741
141,259
2,321,679
16%
15%
12%
20%
15%
0%
2%
11155%
99%
15%
Dolibois European Center - Luxemburg
Salary
Benefits
Scholarships & Fellowships
Utilities
Departmental Support Expenses
Total Expenses
$
$
$
$
$
$
1,027,975
275,645
49,101
328,037
1,680,758
$
$
$
$
$
$
929,736
261,895
27,203
228,264
1,447,098
$
$
$
$
$
$
1,223,639
446,785
35,220
351,000
2,056,644
$
$
$
$
$
$
121,682
56,645
5,357
118,553
302,237
$
$
$
$
$
$
113,986
51,212
1,766
51,561
218,525
$
$
$
$
$
$
128,853
54,027
1,746
68,506
253,132
10%
13%
0%
15%
34%
15%
7%
11%
0%
203%
130%
38%
Attachment H
FY16
Budget
Thru September Year To Date
FY2016
FY2015
FY2014
Overall Page 142 of 204
% of '16 Budget
FY 2016
% Change from '15 YTD
Attachment Page 7 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - by Operational Unit
FY2016 / FY2015 / FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
Graduate School
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
1,580,813
495,789
13,879,476
309,072
16,265,150
$
$
$
$
$
2,420,009
495,082
14,873,780
252,783
18,041,654
$
$
$
$
$
2,361,004
587,467
12,808,216
548,851
16,305,538
$
$
$
$
$
586,626
158,432
10,964,322
95,861
11,805,241
$
$
$
$
$
580,409
167,349
13,404,187
81,187
14,233,132
$
$
$
$
$
403,355
145,328
10,357,368
48,367
10,954,418
25%
27%
86%
17%
72%
1%
-5%
-18%
18%
-17%
Other Provost Departments
Salary
Benefits
Scholarships & Fellowships
Utilities
Departmental Support Expenses
Total Expenses
$
$
$
$
$
$
8,211,049
2,390,578
1,245,328
308
5,474,550
17,321,813
$
$
$
$
$
$
7,848,019
2,709,275
528,507
395
5,912,645
16,998,841
$
$
$
$
$
$
8,985,298
3,615,269
109,910
6,424,579
19,135,056
$
$
$
$
$
$
2,109,773
834,202
49,877
3,050,702
6,044,554
$
$
$
$
$
$
2,033,225
769,112
2,272
2,951,244
5,755,853
$
$
$
$
$
$
2,017,991
755,194
52,500
20
2,671,364
5,497,069
23%
23%
45%
0%
47%
32%
4%
8%
0%
-100%
3%
5%
Total Provost Office
Salary
Benefits
Scholarships & Fellowships
Utilities
Departmental Support Expenses
Total Expenses
$
$
$
$
$
$
104,312,721
29,357,188
28,456,380
49,409
16,013,335
178,189,033
$
$
$
$
$
$
109,567,131
31,190,690
27,971,577
27,598
12,758,396
181,515,392
$
$
$
$
$
$
115,016,124
40,779,599
28,726,590
35,220
22,106,106
206,663,639
$
$
$
$
$
$
19,689,668
6,808,146
13,147,058
5,357
5,484,673
45,134,902
$
$
$
$
$
$
19,165,015
6,487,855
13,455,590
4,038
4,409,993
43,522,491
$
$
$
$
$
$
18,228,280
6,584,202
12,839,018
1,766
4,412,870
42,066,136
17%
17%
46%
15%
25%
22%
3%
5%
-2%
33%
24%
4%
Physical Facilities
Salary
Benefits
Utilities
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
$
11,617,710
3,641,987
12,886,292
6,930
771,857
28,924,776
$
$
$
$
$
$
11,940,718
3,741,925
13,159,466
2,423
781,433
29,625,965
$
$
$
$
$
$
12,794,937
5,130,523
13,279,424
27,162
300,562
31,532,608
$
$
$
$
$
$
3,014,328
1,208,534
3,265,830
106,693
7,595,385
$
$
$
$
$
$
3,067,482
1,193,612
3,291,725
288,186
7,841,005
$
$
$
$
$
$
2,861,706
1,120,018
3,332,991
21
47,539
7,362,275
24%
24%
25%
0%
35%
24%
-2%
1%
-1%
0%
-63%
-3%
Other Finance & Business Services Departments
Salary
$
7,788,857
Benefits
$
2,417,137
Departmental Support Expenses
$
1,910,247
Total Expenses
$
12,116,241
$
$
$
$
8,035,713
2,470,382
1,201,466
11,707,561
$
$
$
$
8,203,199
3,311,193
2,201,227
13,715,619
$
$
$
$
1,804,534
726,218
641,704
3,172,456
$
$
$
$
1,959,410
784,496
329,243
3,073,149
$
$
$
$
1,881,058
737,751
497,844
3,116,653
22%
22%
29%
23%
-8%
-7%
95%
3%
Enrollment Management & Student Success
Salary
$
Benefits
$
Scholarships & Fellowships
$
Departmental Support Expenses
$
Total Expenses
$
$
$
$
$
$
6,139,014
1,943,430
62,640,323
2,713,887
73,436,654
$
$
$
$
$
6,826,677
2,754,236
72,548,488
3,581,483
85,710,884
$
$
$
$
$
1,581,090
636,728
34,839,010
1,205,310
38,262,138
$
$
$
$
$
1,327,796
516,110
30,491,652
828,260
33,163,818
$
$
$
$
$
1,181,930
477,739
27,598,141
566,088
29,823,898
23%
23%
48%
34%
45%
19%
23%
14%
46%
15%
Attachment H
4,980,451
1,560,108
55,511,208
2,688,059
64,739,826
FY16
Budget
Thru September Year To Date
FY2016
FY2015
FY2014
Overall Page 143 of 204
% of '16 Budget
FY 2016
% Change from '15 YTD
Attachment Page 8 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - by Operational Unit
FY2016 / FY2015 / FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY16
Budget
Thru September Year To Date
FY2016
FY2015
FY2014
Salary
Benefits
Departmental Support Expenses
Total Expenses
$
$
$
$
3,864,846
1,196,472
5,182,721
10,244,039
$
$
$
$
4,060,901
1,230,793
3,957,743
9,249,437
$
$
$
$
4,219,652
1,705,869
3,960,578
9,886,099
$
$
$
$
1,008,131
405,128
808,512
2,221,771
$
$
$
$
951,686
370,379
521,280
1,843,345
$
$
$
$
882,995
344,811
1,238,759
2,466,565
24%
24%
20%
22%
6%
9%
55%
21%
Student Affairs
Salary
Benefits
Scholarships & Fellowships
Departmental Support Expenses
Total Expenses
$
$
$
$
$
5,220,016
1,540,516
953,072
(1,281,496)
6,432,108
$
$
$
$
$
5,031,600
1,550,085
907,265
(1,788,320)
5,700,630
$
$
$
$
$
6,624,312
2,494,316
1,033,877
(1,675,187)
8,477,318
$
$
$
$
$
1,275,689
496,696
85,629
(416,386)
1,441,628
$
$
$
$
$
1,336,851
503,820
1,471
(429,896)
1,412,246
$
$
$
$
$
1,241,764
467,722
44,635
691,937
2,446,058
19%
20%
8%
25%
17%
-5%
-1%
5721%
-3%
2%
University Advancement
Salary
Benefits
Departmental Support Expenses
Total Expenses
$
$
$
$
4,018,665
1,313,240
641,339
5,973,244
$
$
$
$
4,127,538
1,312,412
350,349
5,790,299
$
$
$
$
4,406,315
1,780,629
410,520
6,597,464
$
$
$
$
1,068,914
427,093
79,920
1,575,927
$
$
$
$
1,033,489
408,056
221,496
1,663,041
$
$
$
$
990,088
388,557
272,754
1,651,399
24%
24%
19%
24%
3%
5%
-64%
-5%
Information Technology
Salary
Benefits
Departmental Support Expenses
Total Expenses
$
$
$
$
7,759,854
2,489,482
2,585,768
12,835,104
$
$
$
$
7,195,604
2,278,002
1,714,435
11,188,041
$
$
$
$
8,705,000
3,525,525
3,208,904
15,439,429
$
$
$
$
1,759,576
711,711
1,765,062
4,236,349
$
$
$
$
1,845,274
741,788
1,997,104
4,584,166
$
$
$
$
1,910,881
759,271
2,222,376
4,892,528
20%
20%
55%
27%
-5%
-4%
-12%
-8%
Centrally Budgeted Funds
Salary
Benefits
Departmental Support Expenses
Total Expenses
$
$
$
$
5,537
819,405
672,155
$
$
$
$
626
11,123
849,447
861,196
$
$
$
$
1,289,530
543,908
5,700,655
7,534,093
$
$
$
$
3,690
2,219
688,441
694,350
$
$
$
$
803,880
803,880
$
$
$
$
712,578
712,578
0%
0%
12%
9%
0%
0%
-14%
-14%
Grand Total
Salary
Benefits
Scholarships & Fellowships
Utilities
Departmental Support Expenses
Admin Service Charge
Multi Year Accounts
Total Expenses
$
$
$
$
$
$
$
$
19%
18%
47%
25%
30%
25%
0%
27%
2%
4%
9%
-1%
35%
0%
-24%
8%
% of '16 Budget
FY 2016
% Change from '15 YTD
President
149,563,120
43,521,667
84,927,590
12,935,701
29,331,235
(7,639,099)
4,680,725
317,320,939
$
$
$
$
$
$
$
$
156,098,845
45,728,842
91,521,588
13,187,064
22,538,836
(8,079,403)
5,110,493
326,106,265
$
$
$
$
$
$
$
$
168,085,746
62,025,798
102,336,117
13,314,644
34,123,106
(8,106,724)
5,671,742
377,450,429
$
$
$
$
$
$
$
$
31,205,620
11,422,473
48,071,697
3,271,187
10,363,929
(2,026,681)
981,594
103,289,819
$
$
$
$
$
$
$
$
30,687,003
11,006,116
43,948,713
3,295,763
7,670,987
(2,030,600)
1,298,559
95,876,541
$
$
$
$
$
$
$
$
29,178,702
10,880,071
40,481,815
3,334,757
9,786,301
(1,911,859)
876,444
92,626,231
Note: Excludes Transfers
Attachment H
Overall Page 144 of 204
Attachment Page 9 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
Residence & Dining Halls
Revenue
88,831,152
95,376,089
99,106,340
50,836,265
49,404,131
45,607,702
51%
3%
General Fee Support
Salary
Benefits
Utilites
88,831,152
15,344,766
3,938,126
5,614,894
95,376,089
15,732,386
4,046,864
6,179,598
99,106,340
14,198,818
4,470,242
6,191,844
50,836,265
3,523,569
1,228,822
1,356,666
49,404,131
3,913,862
1,301,194
1,391,005
45,607,702
3,489,906
1,206,878
1,152,460
51%
25%
27%
22%
3%
-10%
-6%
-2%
Charge Outs
Operating Expenses
(407,594)
29,339,543
(2,695,243)
33,518,415
(2,668,480)
37,369,828
83,114
9,204,738
(219,481)
7,822,036
108,294
4,882,334
-3%
25%
-138%
18%
22,303,542
76,133,276
(12,261,837)
436,036
13,939
30,866,290
87,662,249
(7,706,422)
7,417
44,500
33,909,606
93,516,358
(5,589,982)
-
654
8,568,421
23,965,984
(1,509,937)
25,360,344
7,725,834
21,934,450
(1,860,244)
25,609,437
121
5,457,620
16,297,612
29,310,090
1%
25%
26%
27%
25,637,661
855,000
26,492,661
4,714,092
1,080,457
508,405
(20,371)
3,354,456
14,371,431
57,760
24,066,231
(2,303,909)
122,521
26,044,832
855,000
26,899,832
4,232,203
1,046,556
413,065
(688,444)
5,247,135
14,127,443
47,326
24,425,284
(2,416,642)
57,906
27,031,621
872,081
27,903,702
4,330,943
1,362,910
455,429
(637,937)
5,012,470
14,348,714
47,196
24,919,725
(2,983,977)
-
9,382,576
218,020
9,600,596
969,213
322,517
126,249
(203,980)
872,548
5,313,098
11,932
7,411,577
(644,564)
1,544,455
8,301,434
213,750
8,515,184
1,103,079
351,434
288,865
(49,445)
823,494
5,091,813
11,959
7,621,199
(203,910)
690,076
9,373,197
213,750
9,586,947
1,362,917
413,658
298,776
712,075
5,487,684
8,275,110
1,311,837
35%
25%
34%
22%
24%
28%
32%
17%
37%
25%
30%
22%
Total Sources
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
11%
9%
-19%
-1%
Shriver Center
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
Attachment H
Overall Page 145 of 204
13%
2%
13%
-12%
-8%
-56%
313%
6%
4%
0%
-3%
216%
124%
Attachment Page 10 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
Marcum Conference Center
Revenue
2,058,362
1,428,869
1,511,562
General Fee Support
2,058,362
955,142
203,847
176,623
(7,087)
1,428,869
535,093
144,168
137,654
(43,000)
1,511,562
568,490
178,235
207,448
46,652
631,942
5,198
5,092
1,970,757
(18,533)
69,071
454,496
24,525
1,252,936
(141,119)
34,813
485,314
1,500
1,487,639
(23,923)
-
5,383,708
15,735,046
383,955
1,226,906
22,729,614
7,688,808
2,373,843
8,800
(117,760)
12,088,308
-
5,987,974
16,107,965
692,406
1,112,975
23,901,320
7,618,940
2,314,442
9,869
(123,173)
13,628,179
-
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
384,105
360,103
542,611
25%
7%
384,105
114,569
39,286
43,189
360,103
167,025
55,218
46,060
-
542,611
267,904
91,069
46,450
(6,250)
25%
20%
22%
21%
0%
7%
-31%
-29%
-6%
70,918
52
339,274
(22,780)
(1,951)
161,430
138
1,278
562,019
(19,408)
23%
36%
59%
956%
21%
25%
-9%
-74%
-3587%
46%
24%
26%
21%
29%
24%
24%
22%
59%
5%
-46%
82%
21%
-1%
0%
405%
39%
4%
51%
159%
16%
31%
82%
48%
6%
-10%
-65%
112,503
544
310,090
(5,981)
68,034
Intercollegiate Athletics
Revenue
General Fee Support
Designated Revenue
Restricted Revenue
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
436,248
Restricted Expense
Total Uses
Attachment H
2,951,009
4,142,580
150,756
402,043
7,646,388
1,833,742
709,907
560
13,309,551
5,128,939
590,374
303,996
-
Designated Expense
Net Transfers
Net Total
6,385,883
17,370,318
590,374
1,877,805
26,224,380
7,692,515
2,979,737
2,500
1,392,619
23,870,866
1,632,054
490,802
746,950
1,349,553
25,544,760
895,565
(747,875)
1,853,685
3,954,492
280,308
220,731
6,309,216
1,848,119
708,231
111
4,910,985
-
1,877,805
26,452,482
228,102
-
307,555
8,284,699
187,500
(450,811)
Overall Page 146 of 204
117,364
207,941
7,792,751
207,500
(1,276,035)
1,556,236
3,948,761
164,909
236,173
5,906,079
1,831,306
709,312
1,313
4,455,203
115,977
287,541
7,400,651
100,000
(1,394,572)
Attachment Page 11 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
Recreation Center
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
2,820,137
4,501,401
7,321,538
2,569,186
532,432
3,191,209
3,706,729
6,897,938
2,660,057
599,473
3,157,940
3,754,534
6,912,474
2,824,883
784,656
758,041
1,059,016
187,544
1,393,469
6,499,687
(726,064)
95,786
717,230
1,429,918
312,791
5,719,468
(1,105,247)
73,223
746,260
336,436
1,125,212
248,000
6,065,447
(847,027)
-
3,518,776
2,238,736
5,757,512
1,225,713
309,369
997,729
356,378
221,049
2,043,168
5,153,404
(557,937)
46,171
3,529,955
2,182,739
5,712,694
1,156,649
323,471
950,515
414,371
203,240
2,039,936
5,088,182
(579,832)
44,681
3,463,860
2,201,527
5,665,387
1,238,055
419,513
1,082,318
461,340
170,000
2,030,650
5,401,876
(263,511)
-
977,603
938,633
1,916,236
633,845
178,965
237,754
248,349
74,638
1,373,550
(212,407)
330,278
1,037,706
926,683
1,964,389
632,419
173,630
949,796
1,125,350
2,075,146
599,018
168,471
31%
25%
28%
22%
23%
-6%
1%
-2%
0%
3%
195,916
239,442
70,061
1,311,467
(201,311)
451,611
200,224
251,340
23,520
349,772
1,592,343
482,803
32%
0%
22%
30%
21%
23%
25%
5%
6%
-27%
1,268,377
545,684
1,814,061
268,833
96,686
259,293
71,103
70,001
515,802
1,281,718
(66,141)
466,202
1,311,974
559,684
1,871,658
280,125
100,777
304,662
76,517
89,799
519,240
1,371,121
500,537
45%
25%
37%
21%
23%
28%
24%
1%
17%
-2%
0%
15%
17%
15%
28%
24%
25%
11%
-63%
8%
3%
1%
57%
4%
7%
Goggin Ice Arena
Revenue
General Fee Support
Total Sources
`
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
Attachment H
1,571,209
550,383
2,121,592
264,538
96,624
298,811
78,612
25,762
558,692
1,323,040
(66,528)
732,025
Overall Page 147 of 204
Attachment Page 12 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
41%
25%
40%
21%
22%
7%
-1%
7%
-12%
-12%
255%
15%
344%
0%
27%
20%
25%
6%
-3%
461%
8%
23%
23%
17%
0%
25%
19%
10%
9%
9%
Parking and Transportation
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
4,130,539
200,000
4,330,539
448,533
132,777
(15,575)
1,798,245
1,937,403
4,301,383
11,171
40,327
3,999,221
200,003
4,199,224
429,872
130,932
(19,603)
1,903,328
1,716,098
4,160,626
(64,355)
(25,758)
4,521,824
199,000
4,720,824
454,048
166,395
1,842,975
49,750
1,892,725
94,632
35,913
(17,500)
2,046,390
(44,654)
314,404
1,710,121
4,359,454
(361,370)
-
460,676
860,971
(90,343)
941,411
1,726,264
50,000
1,776,264
107,111
40,865
(10,047)
313,869
434,206
886,005
(16,090)
874,168
1,749,670
50,000
1,799,670
120,093
46,897
(5,361)
353,880
435,398
950,907
848,763
Utility Enterprise
Revenue
Total Sources
Salary
Benefits
Utilities
Charge Outs
Expense Recovery
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
Attachment H
1,154,576
382,306
10,821,135
(22,515,171)
1,384,738
331
2,428,526
(6,343,559)
(6,274,088)
69,471
1,258,056
425,303
10,470,089
(23,175,972)
1,216,450
2,407,322
(7,398,751)
(6,964,248)
434,503
1,417,016
570,474
12,159,507
(40,000)
(23,734,159)
1,723,506
320,500
128,850
2,050,493
(5,965,676)
319,978
2,406,788
(5,496,868)
(5,496,868)
-
617,983
(2,527,871)
(1,374,217)
1,153,654
Overall Page 148 of 204
292,319
117,998
1,880,318
(5,888,707)
354,551
609,085
(2,634,437)
(1,349,858)
1,284,579
262,107
105,857
1,887,587
(177)
(5,777,368)
393,225
620,690
(2,508,080)
2,508,080
26%
46%
25%
1%
-10%
1%
-4%
2%
-10%
Attachment Page 13 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
Student Health Services
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
1,736,418
1,853,078
624,649
477,049
2,252,538
422,552
2,361,067
985,363
305,503
1,682
500,155
133,673
1,926,377
(83,411)
351,279
2,330,127
865,807
274,447
5,398
723,080
109,335
1,978,067
(165,439)
186,621
1,690,773
3,778,234
3,915,177
1,803,238
1,759,025
-
46%
3%
699,997
841,160
210,290
175,000
-
25%
20%
4,756,337
388,710
85,837
324,692
2,013,528
75,757
17,177
66,628
4%
-5%
-15%
9%
431,533
60%
434%
2,454,491
3,978,178
(778,159)
-
613,623
1,204,717
(194,540)
614,270
3,840
3,840
(3,840)
42%
19%
20%
21%
724,448
1,934,025
80,068
20,236
61,290
80,757
242,351
(192,940)
1,498,734
-
141,211
119,263
2,252,538
726,763
294,343
5,892
422,552
167,956
68,022
1,065
1,075,347
140,000
110,658
19,008
2,242,345
(10,193)
-
366,710
(2,548)
53,294
260,474
209,427
84,597
841
183,028
31,090
508,984
(16,360)
(264,870)
396,945
19%
396,945
259,486
104,636
89,148
28,636
481,906
(84,961)
199%
-100%
19%
23%
23%
18%
62%
-20%
-20%
27%
10%
14%
-40%
-39%
16%
25%
-28%
-84%
-120%
Armstrong - Student Affairs
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
185,098
Total Uses
Net Transfers
Net Total
Attachment H
1,690,773
141,593
36,952
140,881
553,299
1,057,823
(581,623)
51,327
4,478,231
334,192
66,444
275,395
701,089
2,407,128
3,784,248
(647,121)
46,862
Overall Page 149 of 204
25%
30%
25%
397%
1%
-59%
Attachment Page 14 of 15
Attachment H
Year to Date Operating Results
December 3, 2015
MIAMI UNIVERSITY
Financial Analysis - Auxiliary Units (Oxford Campus)
FY2016/FY2015/FY2014
FY2014
Year-end Actual
FY2015
Year-end Actual
FY2016
Original Budget
FY2016
Thru Sep YTD
FY2015
FY2014
% of '16 Budget
FY 2016
% Change from '15 YTD
22%
25%
24%
24%
25%
42%
0%
4%
0%
3%
35%
0%
27%
31%
-39%
-42%
Other Auxiliary
Revenue
General Fee Support
Total Sources
Salary
Benefits
Utilities
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Total Uses
Net Transfers
Net Total
184,396
4,541,070
4,725,466
67,328
17,139
193,706
5,163,646
5,357,353
66,003
18,744
181,106
920,294
1,101,400
71,061
23,270
465,205
349,947
899,618
(3,972,012)
(146,163)
815,995
345,510
1,246,252
(4,486,650)
(375,550)
539,058
100
345,255
978,744
(122,656)
-
137,079,353
28,695,902
383,955
1,226,906
167,386,115
35,349,959
9,330,996
19,913,727
(22,515,171)
(568,387)
51,199,848
14,919,226
31,072,206
436,248
1,392,619
140,531,273
(25,215,609)
1,639,233
145,383,166
29,393,128
692,406
1,112,975
176,581,676
34,889,259
9,390,845
19,158,812
(23,175,972)
(3,569,463)
60,052,456
14,791,271
39,829,612
746,950
1,349,553
153,463,323
(23,381,510)
(263,157)
151,527,851
26,158,914
590,374
1,877,805
180,154,944
33,911,302
11,335,612
21,175,890
(23,734,159)
(2,980,829)
63,872,464
14,952,814
42,904,107
590,374
1,877,805
163,905,380
(16,249,564)
-
39,221
230,073
269,294
17,159
5,807
189,610
94,308
306,885
47,311
9,721
27,641
230,074
257,715
17,106
5,646
30,379
2,687,028
2,717,407
16,541
5,480
328,415
87,365
438,531
(30,000)
(210,816)
163,392
88,892
274,305
(2,661,501)
(218,399)
65,879,576
6,095,683
280,308
220,731
72,476,297
8,639,368
2,955,736
3,864,405
(5,888,707)
(278,972)
15,198,597
5,263,017
9,384,250
117,364
207,941
39,463,001
(3,752,134)
29,261,163
61,518,510
8,584,574
164,909
236,173
70,504,165
8,489,403
2,953,032
3,586,810
(5,777,368)
96,683
11,542,385
5,629,898
7,472,889
115,977
287,541
34,397,249
(2,561,501)
33,545,415
8%
-30%
-258%
-105%
Total Auxiliary
Revenue
General Fee Support
Designated Revenue
Restricted Revenue
Total Sources
Salary
Benefits
Utilities
Expense Recovery
Charge Outs
Operating Expenses
Inventory Purchases
Debt Service
Designated Expense
Restricted Expense
Total Uses
Net Transfers
Net Total
Attachment H
70,210,754
6,339,729
150,756
402,043
77,103,282
8,015,482
2,831,889
4,181,415
(5,965,676)
(165,520)
17,011,871
5,433,705
10,925,634
303,996
307,555
42,880,352
(3,866,255)
30,356,675
Overall Page 150 of 204
46%
24%
26%
21%
43%
24%
25%
20%
25%
6%
27%
36%
25%
51%
16%
26%
24%
7%
4%
-46%
82%
6%
-7%
-4%
8%
1%
-41%
12%
3%
16%
159%
48%
9%
3%
4%
Attachment Page 15 of 15
Attachment I
Internal Audit
December 3, 2015
Business Session
Item 10
To:
Finance and Audit Committee
From:
Barbara K. Jena, Director of Internal Audit and Consulting Services
Subject: Internal Audit & Consulting Services - November 2015 Report
Date:
November 06, 2015
The following presents the Internal Audit and Consulting Services (IACS) annual plan and scope of
internal audit activities, a summary of Internal Audit issues raised in reports, and IACS staffing and
budget for fiscal year 2016.
1. Annual plan and scope of internal audit activities
The Internal Audit Plan is based on a risk analysis of key areas across the University. It was reviewed
and approved by Mark Ridenour and is now presented to the full Committee for approval and any
comments you may have. Information Technology is considered the highest audit risk and is an
ongoing focus area. IACS scheduled an audit of Windows file share security, as well as follow-up audits
concerning end-user device inventory, securing confidential information, and network penetration
testing. Another area of audit focus is compliance with federal regulations and other external
requirements. The audit plan includes compliance reviews of:
⦁ Academic record updates, student refunds, and exit counseling
⦁ Clery Act crime statistics and VAWA required notification
⦁ Construction projects
⦁ Confucius Institute
Please see page 2 for the complete audit plan.
2. Internal Audit issues
The report on pages 3 – 10 summarizes all open audit issues (including those from prior years) and is
sorted by risk level, high to low. The following table shows that since the June 2015 report to the
Committee, 14 issues were added and 22 closed. Four new high risk issues arose in an audit of
academic record updates on the Oxford and regional campuses. Three of these recommendations for
improvement pertain to student withdrawals and one pertains to grade changes (pages 4-5). Added
issues at the moderate risk level pertain to the fuel dispensing system (page 7), as well as departmental
deposit policies and procedures (page 8). The closed issues are summarized on pages 11 - 14.
Audit Issue Status
Open audit
issues
6/5/2015
Risk Level
High
4
Moderate
6
Low
29
Total
39
Added
4
8
2
14
Closed
0
1
21
22
Open audit
issues
11/6/2015
8
13
10
31
3. IACS staffing and budget
IACS is now fully staffed with a Director, two full-time Associate Auditors, and two Interns. The FY 2016
total budget is $359K. Personnel costs account for $335K, or 93% of the budget. Expenditures are
running under budget as of September 30, 2015.
Attachments
Cc: David K. Creamer
Attachment I
Overall Page 151 of 204
Attachment Page 1 of 14
Attachment I
Internal Audit
December 3, 2015
Internal Audit and Consulting Services
FY 2016 Audit Plan
Reference to
Division
Audit Risk Analysis
Audit Area
Audit Project
Status
3; 6
Registrar
Academic Record Updates
Completed
8
45
8
43
18
12
44; 52
11; 13; 26
14
25; 30
46
1A; 1D
Enrollment Mgt & SS
Finance & Bus. Svc.
Finance & Bus. Svc.
Finance & Bus. Svc.
Finance & Bus. Svc.
Student Affairs
Finance & Bus. Svc.
University-wide
Academic Affairs
Finance & Bus. Svc.
Enrollment Mgt & SS
Finance & Bus. Svc.
IT Services
Finance & Bus. Svc.
24
University-wide
Physical Facilities Dept.
HDRBS
Physical Facilities Dept.
HDRBS
OESCR
Treasury Services
University-wide
Deans - CAS, CEHS, CEC
University-wide
Enrollment Management
HDRBS
IT Services
IACS
University-wide
Physical inventory audit - Central Stores
Completed
Physical inventory audit - Rec Center
Completed
Fuel Dispensing System Audit
Completed
MiTech Repair Center - Control of Computers
VAWA required notification - agreed upon procedures
Departmental Deposit Policies and Procedures
Change fund follow-up audits
Completed
In process
International Enrollment Management - follow-up
Physical inventory audit - Goggin Ice Center follow-up
Consulting - IT
In process
In process
On-going
Training/CPE
On-going
EthicsPoint Reporting System with General Counsel
On-going
14; 19; 23
Finance & Bus. Svc.
Human Resources
Consulting - HR
In process
10
University Advancement
Advancement Services
Gift Processing
In process
1G
IT Services
Finance & Bus. Svc.
15
3
2
11; 49
1A; 1B
30
2
36
Finance & Bus. Svc.
Academic Affairs
Finance & Bus. Svc.
Academic Affairs
IT Services
Academic Affairs
Finance & Bus. Svc.
Finance & Bus. Svc.
University-wide
30
3; 6
Academic Affairs
Enrollment Mgt & SS
University-wide
9; 25
5
1A; 1B
10; 53
1A; 1B
25
20; 21
43
1A
Enrollment Mgt & SS
Intercollegiate Athletics
IT Services
University Advancement
IT Services
Enrollment Mgt & SS
Academic Affairs
Finance & Bus. Svc.
IT Services
University-wide
IACS
Police
Middletown Campus
Physical Facilities Dept.
Arts and Science
Information Security
Global Initiatives
Physical Facilities Dept.
Accounts Payable
University-wide
Global Initiatives
Registrar
University-wide
Bursar & SFA
Intercollegiate Athletics
Information Security
WCAA
Information Security
Bursar
Deans - FSB, CCA
HDRBS
ISO
End User Device Inventory - follow-up
Sept
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
June
12
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True
Completed
Completed
McGladrey Coordination
Aug
2
Completed
Completed
Expense Account Audits - follow-up
July
1
In process
LEAN Project - website update
In process
Clery Act Crime Statistics - agreed upon procedures
Middletown Business Office follow-up audit
Construction Project - Kreger Hall
Completed
In process
In process
Speech and Hearing Clinic follow-up audit
Completed
Windows file share security
Scheduled
International Workshops Audit
Scheduled
Construction Project - Shideler Hall
Scheduled
Reimbursements Paid
In process
Enterprise Risk Assessment
On-going
Confucius Institute
Scheduled
Academic Record Updates - follow-up
Scheduled
Enterprise Risk Management - Compliance
On-going
Compliance with fed. regs - refunds and exit counseling - follow-up
Football attendance - agreed upon procedures
Securing Confidential Information - follow-up
Western College Alumnae Association financial audit
Network Penetration Testing - follow-up
Scheduled
Scheduled
Scheduled
Scheduled
In process
Fee Waiver Audit follow-up
Scheduled
Academic Admin. Expense Account Audits
Scheduled
MiTech Repair Center - Control of Computers follow-up
Review of Identity Theft Prevention Program (Red Flags)
Scheduled
Scheduled
2
Attachment I
Overall Page 152 of 204
Attachment Page 2 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
1
2
Audit Name And Date
Date
Opened
Date
Due
95.1 - Network
Penetration Testing 3/2014
3/20/2014
11/1/2015 High
94.1 - End User Device
Inventory 4/2014
4/1/2014
Risk
Level
9/1/2015 High
Division
IT Services
IT Services
Recommendation
Responsible
Person
Management Response and Status
IACS outsourced a network vulnerability assessment and penetration
test to CBTS. The goal of the assessment was to identify gaps in
controls and defenses that could allow an attacker to compromise
Miami University's systems, expose sensitive data, and cause
damage to the University. One high level recommendation was to
require that all servers be managed by IT Services and updates
pushed from a central location. Vulnerabilities were categorized as
high, medium, or low and specific recommendations made to
address the identified risks.
Joe Bazeley,
Assistant VP for
Security,
Compliance &
Risk
Management
It is recommended that IT Services explore tracking all Universityowned end user devices. Tracking these devices could reduce or
avoid cost by enabling IT Services to:
Troy Travis,
Asst VP for
Enterprise
Operations;
Phyllis
Callahan,
Provost & Exec.
VP for
Academic
Affairs
Troy Travis submitted a report 11/3/2015 recommending tools for
inventorying and tracking end user devices, as well as an update to
purchasing policy. This appears responsive to the audit
recommendation. IACS plans to meet with Troy to get a better
understanding of the recommended tools, costs, and
implementation process.
Joe Bazeley,
Assistant VP for
Security,
Compliance &
Risk
Management
In his 1/2015 response, Joe Bazeley stated, "Management agrees
with the finding. Performing the first 3 recommended security
training actions will require additional funding, while the 4th should
not. Joe Bazeley will generate a list of options with associated costs
for performing the first 3 recommended actions by the end of
February 2015. IT Services did not budget for any of these expenses,
and they will likely be annual expenses."
• reduce the risk of copyright infringement as a result of a negative
software licensing audit;
• reduce the risk that devices and any stored data are lost or stolen
with employee turnover;
• increase the efficiency gained through automation of deployment;
• improve scheduling for replacement devices; and
• provide management with the data needed to establish a control
limiting the number of devices per employee, if management chose
to implement such a control.
In a 9/2015 status update, Joe Bazeley stated, "All high and critical
findings in the initial report have been remediated. A process is
being finalized to categorize given risks to Miami's data, to
communicate the need for patching to the relevant IT support
function, and to validate the patch after it has been applied. The
process will include specific guidance for identifying which medium
vulnerabilities need to be remediated and which can be accepted.
In a 11/2015 update, Joe Bazeley stated, "The current vulnerability
scanning process has been updated to line up with the revised
vulnerability management standard. The process is being used, and
we will approach IACS in March 2016 to assess our adherence to the
standard. We are also still pursuing funding to purchase an
improved vulnerability scanning tool." IACS continues to monitor
the status of this issue.
At their 6/2014 Finance and Audit Committee meeting, the Board
directed IT Services and Academic Affairs to implement internal
control of University-owned end user devices.
3
117.1 - Securing
Confidential
Information-Procedure
Review- 1/2015
1/16/2015
11/1/2015 High
IT Services
It is recommended that IT Services work with Human Resources and
Academic Personnel management to:
• require that all new employees (including students) receive
appropriate training regarding Miami's information security
practices;
• require that all employees (including students) receive
appropriate updates on information security annually;
• provide appropriate employees with clear documentation
detailing the approved mediums for communicating Personally
Identifiable Information; and,
• establish procedures to hold employees who have received
training accountable by receiving appropriate disciplinary action for
violating Miami's information security practices.
As of 4/2015, Joe Bazeley estimated training costs of approximately
$18K annually ($2.50/user/year). This estimate excludes AFSCME
staff and includes student workers. In a 5/2015 update, Joe stated a
funding source needs to be identified and he is putting together a
business case for this item and other needed security resources.
In a 11/2015 update, Joe Bazeley stated that the business case was
presented on 10/16/2015 and he is waiting for a response on
whether the requested funds will be made available. IACS continues
to monitor the status of this issue.
3
Attachment I
Overall Page 153 of 204
Attachment Page 3 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
Date
Opened
Date
Due
4
117.2 - Securing
Confidential
Information- Procedure
Review- 1/2015
1/16/2015
11/1/2015 High
Risk
Level
Division
IT Services
Recommendation
It is recommended that IT Services management continue to
investigate and implement methods to detect and correct exposed
Personally Identifiable Information (PII). IT Services should work
with General Counsel to define PII.
Responsible
Person
Joe Bazeley,
Assistant VP for
Security,
Compliance &
Risk
Management
Management Response and Status
"Management agrees with the finding. IT Services will begin
researching possible solutions in February 2015, and plans on having
a comprehensive solution for scanning all file servers and web
servers housed at Miami and managed by IT Services by the end of
June 2015." In a 5/15 update, Joe Bazeley stated, "Work on the
proof of concept is underway, and we expect to have a process in
production by end of June 2015."
Joe Bazeley states in his 9/15 update, "Proof of concept of in-house
solution using open source software found to have numerous
deficiencies. Incorporating commercial software into the overall
security business case as funding will be required."
In a 11/2015 update, Joe Bazeley stated that the business case was
presented on 10/16/2015 and he is waiting for a response on
whether the requested funds will be made available. IACS
continues to monitor the status of this issue.
5
104.1 - Audit of
Academic Record
Updates - 7/2015
7/28/2015
1/1/2016 High
Enrollment
Management
& Student
Success
IACS recommends that the Office of the University Registrar work
with the Office of Student Financial Assistance to revise current
procedures for determining withdrawal dates to align with federal
regulation 34 CFR § 668.22. The University Registrar should work
with the Office of the Provost to enforce the procedures as needed.
David Sauter,
University
Registrar
Management concurred 7/2015 stating, "The Office of the University
Registrar concurs with the finding that current procedures are
insufficient to comply with the regulation to determine withdrawal
dates...a Lean initiative is nearly completed which will automate and
standardize the University withdrawal process. Full compliance will
occur no later than January 1, 2016."
In a 10/2015 update, management stated, "(1) Photoroster (faculty
class list) provides information as to student (a) attending or (b) last
attended/never attended; (2) University Lean Initiative will provide
policy and process changes to require one online form, notification
and signatory workflow, and process improvements across the
University for all academic and medical withdrawals." In response to
IACS's question whether the University is on track to be in full
compliance by 1/1/2016, management reported that the Lean
initiative is just moving forward as an IT project and there is no
estimate of when it will be placed into production.
IACS will meet with the Registrar to discuss interim measures that
may be able to be taken for determining withdrawal dates in
alignment with federal regulation.
6
104.2 - Audit of
Academic Record
Updates - 7/2015
7/28/2015
1/1/2016 High
Enrollment
Management
& Student
Success
IACS recommends that appropriate policies and procedures be
established to document if a student began attendance in any class.
In order to obtain and maintain such documentation consistently
and timely, the Office of the University Registrar should work with
the Office of Student Financial Assistance and the Office of the
Provost in designing and enforcing the policies and procedures.
David Sauter,
University
Registrar
Management concurred 7/2015 stating, "The Office of the University
Registrar concurs with the finding that current procedures are
insufficient to comply with the regulation to determine if a student
began attendance in a class...Full compliance will occur no later than
January 1, 2016."
In a 10/2015 update, management stated that policies and
procedures are under development that will document if a student
began attendance in any class. More specifically, plans are to
​discontinue student web class drops once classes begin in order to
record attendance information from faculty, using the photo roster
drop process. COAD is reviewing the proposed new drop date policy
and class attendance policy at 11/4/15 meeting, then to
APC/University Senate for implementation August 2016.
Given the need to comply with federal regulation to determine if a
student began attendance in a class, IACS will ask the Registrar if
these procedural changes could be implemented 1/25/2016 (first
day of class Spring Term 2016), rather than 8/2016.
4
Attachment I
Overall Page 154 of 204
Attachment Page 4 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
7
Audit Name And Date
Date
Opened
104.3 - Audit of
Academic Record
Updates - 7/2015
7/28/2015
Date
Due
Risk
Level
10/31/2015 High
Division
Enrollment
Management
& Student
Success
Recommendation
IACS recommends the Office of the University Registrar:
a. Standardize and improve withdrawal policies and procedures as
follows:
Responsible
Person
David Sauter,
University
Registrar
i. Create a standardized withdrawal form for all campuses and
withdrawal scenarios. The form should include information such as
reason for withdrawal, last date of attendance or never attended
information, registrar's date of receipt, processor and date posted.
This form should be completed by registrar staff if not provided
otherwise and supporting documentation attached.
Management Response and Status
Management concurred 7/2015 stating, "The Office of the University
Registrar concurs with the finding that current withdrawal policies
and procedures are insufficient and need to be standardized and
improved. As stated in Management Response #1, a Lean initiative
is nearly completed which will automate and standardize the
University withdrawal process...Full compliance is anticipated early
Fall 2015, including real-time electronic processing and review and
redefining as needed the Enrollment Status codes and training for all
users on the process."
In a 10/2015 update, management reported:
a.i. and a.ii. Per 104.1, the University LEAN project will include a
standardized on-line form, stored electronically for appropriate
University access. The Lean initiative is just moving forward as an IT
project and there is no estimate of when it will be placed into
production.
ii. Retain all withdrawal documents in a central location either
electronically or in paper form.
iii. Process withdrawal requests in the timeframe required by
departmental procedures.
a.iii. Processing will occur within a timeframe established during the
LEAN project and in accordance with federal regulations. Based on
the current draft LEAN project, the process will require a time length
appropriate to secure various signatures and, last dates of
attendance, and notifications. This is under discussion by the LEAN
project participants as they acknowledge the various types of
withdrawals across the University.
b. Define Withdrawal and Enrollment Status codes and their use to
improve input accuracy and consistency.
c. Retrain employees who process withdrawals, including the Office
of Student Financial Assistance and Global Initiatives, to gain
proficiency in the established policies and procedures, and to
minimize inaccurate input, incomplete documentation and nonexecution of required procedures.
b. Banner codes have been updated and are stored in the
appropriate Banner table.
c. Three senior level managers will be re-trained, and each in turn
will re-train her/his staff.
8
104.4 - Audit of
Academic Record
Updates - 7/2015
7/28/2015
10/31/2015 High
Enrollment
Management
& Student
Success
IACS recommends the Office of the University Registrar continue
working with IT Services to automate the grade change process. The
automated process should be used by all campuses and include
these features:
a. email confirmations to the student and the instructor of record
b. workflow approvals
c. required fields such as the reason for the change
d. capability to attach supporting documentation if applicable
e. audit trail data such as registrar's date of receipt, processor and
date posted
f. trend analysis to detect possible fraud
David Sauter,
University
Registrar
Management concurred 7/2015 stating, "The Office of the University
Registrar concurs with the finding that the process of automating
grade changes continues until completed and that it be used across
the University. This automation has been under development and
with minor adjustments will be put into production. The automated
process includes workflow approvals, fields to indicate reason(s) for
the change, Google document capability, and audit trail data. The
process concludes by sending both the instructor and the student email notification that the grade has been changed for a class. Trend
analysis can be reviewed via Business Intelligence model under
development, either academic-unit-specific (e.g., department,
individual faculty member) or administrative offices (e.g., Provost).
Full compliance is anticipated early Fall 2015."
In a 10/2015 update, management reported that EMSS submitted
the grade change automation project request to IT Services on
10/26/15. It is on the EMSS priority list, now awaiting assignment of
IT resources.
5
Attachment I
Overall Page 155 of 204
Attachment Page 5 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
Date
Opened
Date
Due
9
53.2 - Inventory Audits 7/31/2012
7/31/2012
6/30/2016 Moderate
Risk
Level
Division
Finance &
Business
Services
Recommendation
Accounting adjustments should be booked monthly in Banner to
recognize changes in inventory balances throughout the year as well
as cost of goods sold/distributed, shrinkage, or markdowns. Current
accounting procedures require units (such as Culinary Support,
Central Stores, and the Bookstore) to charge inventory purchases
throughout the year to expense (157XXX) accounts. It is only at
yearend that the inventory asset accounts are adjusted in Banner.
This practice masks shrinkage and markdowns.
Responsible
Person
Sarah
Persinger,
Controller
Management Response and Status
Purchasing conducted an RFI in December 2014. This was the
response from the Chief Procurement Officer, "We had only two
responses that were more about maintenance inventory systems.
The scope of the RFI was comprehensive to include virtually all
inventories on campus and consider a single platform. We are left to
conclude there is not a one size fits all solution. At this time I am not
contemplating any further sourcing action." The Controller added,
"This topic will be revisited during FY16 in light of the Purchasing lack
of response to the RFI in order to encompass inventories into a
single system."
In a 11/2015 update, the Controller stated that a meeting has been
set up between HDRBS and General Accounting to discuss and
determine next steps forward to implementing the recommendation
of IACS for periodic inventory counts.
10
110.1 - Audit of Fee
Waivers- 1/2015
1/28/2015
1/28/2015 Moderate
Enrollment
Management
and Student
Success
Where documented authorization to waive fees cannot be located, it
is recommended that the Bursar's Office obtain such authorization
from the Treasurer. Documented authorization for waiving all fees
should be maintained by the Bursar's Office going forward.
Kriss Cassano,
Bursar
In a 10/2015 update, management stated, "All waiver
documentation is current and up to date." IACS scheduled a followup review fourth quarter, FY 2016.
11
110.2 - Audit of Fee
Waivers- 1/2015
1/28/2015
8/24/2015 Moderate
Enrollment
Management
and Student
Success
To strengthen internal controls over the University's fee waiver
process, it is recommended that the Bursar's Office verify that all
waivers are in compliance with waiver agreements before applying
them.
Kriss Cassano,
Bursar
In a 10/2015 update, management stated, "No student is added to a
waiver unless we have documented information regarding the
waiver and the number of students included (listed)." IACS
scheduled a follow-up review fourth quarter, FY 2016.
12
127.1 - Audit of Title IV
Federal Student Aid
Refunds- 4/2015
4/27/2015
4/27/2015 Moderate
Enrollment
Management
& Student
Success
It is recommended that the Office of the Bursar comply with federal
regulation 34 CFR § 668.164(e) and issue student refunds within the
14 day requirement. Additional training and process improvements
should be considered.
Kriss Cassano,
Bursar
In a 10/2015 update, the Bursar stated, "We have updated refunding
procedures to refund all TIV accounts during the weekly refunding
and a second time during the week as a cross check." IACS
scheduled a follow-up review third quarter, FY 2016.
13
127.2 - Audit of
Required Exit
Counseling for
Borrowers - 5/2015
5/11/2015
5/11/2015 Moderate
Enrollment
Management
& Student
Success
It is recommended that the Office of Student Financial Assistance
verify that procedures are in place to consistently comply with
federal regulation 34 CFR § 682.604(a)(1) that requires exit
counseling for applicable student borrowers.
Brent Shock,
Director of
Student
Financial
Assistance
Management concurred 5/2015, stating, "Student Financial
Assistance (SFA) has modified internal processes and procedures to
resolve this issue…While SFA failed to meet the 30 day requirement,
it should be noted that all exit materials were sent. Recent reports
from schools that have undergone Federal Program Reviews indicate
citations were issued for missed exit counseling, with no reports of
citations for late exit counseling."
In a 11/2015 update, management stated, "SFA developed and
implemented a series of reports and processes to ensure
compliance. We continue to review records for students that stop
out, withdraw or otherwise leave the University. As stated in our
response, we do this every two weeks, even during periods of class
fluctuations and before enrollment is considered "set" for the term.
All exit information is sent via the US postal system."
IACS scheduled a follow-up audit FY 2016 to verify appropriate
action has been taken to close this issue.
6
Attachment I
Overall Page 156 of 204
Attachment Page 6 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
Date
Opened
Date
Due
14
121.1 - Audit of Fuel
Dispensing System7/2015
7/10/2015
6/30/2016 Moderate
Risk
Level
Division
Finance &
Business
Services
Recommendation
IACS recommends PFD management explore options for updating to
a reliable, adequately controlled fuel dispensing system. Desirable
features include capabilities to:
• interface with PFD's inventory management system, thus reducing
manual processing currently required to post fuel transactions from
Gasboy to WebTMA.
•produce customizable electronic reports to facilitate real-time
inventory analysis, monitoring of fueling activity, and management
of user access.
•provide administrative access control including unique usernames,
passwords and audit logs that detail updates to the system.
•increase control of unauthorized fuel dispensing.
15
121.2 - Audit of Fuel
Dispensing System7/2015
7/10/2015
9/30/2015 Moderate
Finance &
Business
Services
IACS recommends PFD management require written supervisory
approval before adding users and fuel cards to the fuel dispensing
database. Additionally, verify users having such authorization, the
index code charged for fuel, and the related vehicles and equipment
with supervisors at least annually. The fuel dispensing authorization
form and annual verification procedures should be documented.
Responsible
Person
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
Management Response and Status
Management concurred 7/2015 stating, "We agree. Cody Powell
has asked our Director of IT Services to lead a team to replace the
fuel dispensing system. The new system selected will provide all the
above functionalities (and perhaps more). The connection between
Gasboy and TMA and/or Banner would be a project that would have
to be approved and supported by IT Services."
In a 11/2015 update, management reported, "We have two vendors
who will be coming to campus soon to show how their systems
work. We have gone through a lengthy RFP process prior to these
vendors coming to campus. We initiated a lean team, developed a
current and future state, and created the fuel system RFP addressing
the future state needs. The RFP responses have been received. We
are hosting the respondents on campus prior to making a final
determination. We hope to have a new vendor selected by the end
of January. We hope to have the system running by the end of the
fiscal year but that will depend on how long it takes to develop a
communication plan, modify the vehicles and fuel containers and
update the software."
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
Management concurred 7/2015 stating, "We agree. A form was
sent to all Building Points of Contact on May 12, 2015, informing
departments that moving forward, no one would be issued a fuel
card without written consent from the department head. Since that
date, we have been requiring this form before a user is added. The
fuel dispensing authorization form and annual verification
procedures will be documented by 9/30/15."
In a 11/2015 update, management reported, "The new software will
validate the user by using the employee's Miami ID card. No
employees will be added to the database without an email with
specific date from the department head."
16
121.3 - Audit of Fuel
Dispensing System7/2015
7/10/2015
9/1/2015 Moderate
Finance &
Business
Services
IACS recommends PFD management establish and document
standard naming conventions and other procedures. Naming
conventions should uniquely identify employees, departments,
vehicles and equipment. In addition, procedures should address
handling lost fuel cards, forgotten access PINs, employee
department changes and vehicle replacements.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
Management concurred 7/2015 stating, "We agree. Because many
different staff members have worked with this system over the
years, the processes for adding new departments and employees
has not been consistent. A process will be defined and documented
that will outline naming conventions and other procedures that will
make it easier to manage the data. This document will be completed
by 9/1/15."
In a 11/2015 update, management reported, "Since the audit, we
have been using the SS# field to add the employee's unique id in the
current Gasboy system because we are unable to edit the current
records. The new system will be set up to use the unique id along
with first and last names. When an employee leaves the university
their card is inactivated."
17
121.4 - Audit of Fuel
Dispensing System7/2015
7/10/2015
8/10/2015 Moderate
Finance &
Business
Services
IACS recommends interdepartmental fuel expenses be charged-out
monthly, in accordance with General Accounting's Banner Finance
monthly close schedule.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
Management concurred 7/2015 stating, "Agreed. All fuel
transactions will be processed at the end of each month."
In a 11/2015 update, management reported, "All fuel charges are
being added to TMA and billed out monthly." IACS will perform a
follow-up audit after management has resolved the other issues
included in this report.
7
Attachment I
Overall Page 157 of 204
Attachment Page 7 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
Date
Opened
18
104.5 - Audit of
Academic Record
Updates - 7/2015
7/28/2015
Date
Due
Risk
Level
12/31/2015 Moderate
Division
Academic
Affairs
Recommendation
In order to further minimize the number of missing grades, IACS
recommends the Office of the University Registrar:
Responsible
Person
David Sauter,
University
Registrar
a. Continue to analyze data of missing grades each semester and
identify instructors who repeatedly miss the grade submission
deadline. Chronic offenders should be highlighted and submitted to
the Provost with a complete list of faculty missing the deadline. An
additional communication to the delinquent faculty could reiterate
the ramifications of failing to meet the grade submission deadline
and add a "drop dead" deadline; and
b. Request the Provost issue guidance on taking delinquent grade
submissions into consideration during faculty reviews and salary
increment recommendations.
Management Response and Status
Management concurred 7/2015 stating, "The Office of the University
Registrar concurs with the findings to continue to analyze missing
and late grades, including additional/differentiated communications
to offenders, and for the Provost to review this as a criterion for
faculty reviews. The Office will develop a proposal for Provost
review, requiring grade submission by the deadlines stated on the
Academic Calendar. The Office will request that the Provost send a
stand-alone email to all faculty and academic administrators stating
the Policy as well as the importance of timely submissions and the
ramifications of late submissions (prior examples of communications
already exist). Full compliance is anticipated for Fall 2015."
In a 10/2015 update, management stated:
(1) Provost Newsletters in November and December 2015 will
contain a Provost reminder of upcoming final grade submission, and
email to all faculty will be sent by Provost on December 3, 2015. The
same process will be followed each of the four terms.
(2) Issues were presented, discussed, and supported at September
23, 2015 COAD meeting.
Work continues toward 100% timely submission, with emails of
missing grades and data gathering of grades/faculty continuing to be
developed and provided to academic units and the Provost.
19
103.1 - Audit of
Departmental Deposit
Policies and
Procedures - 10/2015
10/27/2015
12/31/2015 Moderate
Finance &
Business
Services
IACS recommends update to the cash handling, depositing, and
credit card policies and procedures to remove repetitive and
conflicting information. The policies should be consolidated where
appropriate and communicated widely within the University.
Cyndi
Ripberger,
Associate
Director of
Investments
and Treasury
Services
On 10/26/2015, management concurred stating, "Treasury
management agrees with this recommendation. As a first step, I
have been in contact with the Enrollment Center (bursar) staff;
together we are working to remove the document they have posted
on the One Stop and instead, linking to the appropriate Treasury
web page. The information on the Hub already is a link to Treasury
documents—so whenever our documents are updated, their
documents are automatically updated. I have also initiated contact
with IT security to determine why we have a conflict in the language
concerning paper retention. Once we have resolution of the conflict
the intention is to make the policies consistent. The Treasury web
design is part of the Finance and Business Services Lean project on
web design; as such, we will be reviewing, consolidating, and making
changes throughout this Lean project."
20
103.2 - Audit of
Departmental Deposit
Policies and
Procedures - 10/2015
10/27/2015
11/30/2015 Moderate
Finance &
Business
Services
IACS recommends Treasury Services send confirmation receipts to
department contacts after booking departmental ACH deposits.
Additionally, maintain current department contact information, as
well as financial account information for booking departmental ACH
deposits.
Cyndi
Ripberger,
Associate
Director of
Investments
and Treasury
Services
On 10/26/2015, management concurred stating, "Treasury
management agrees with the recommendation. Beginning
immediately Treasury will send an email to department contacts
when an ACH payment has been received and posted. A
spreadsheet will be maintained in our shared file that will contain
department contacts along with Banner FOAPAL. This information
will be updated as new ACH/EFT requests are received."
21
103.3 - Audit of
Departmental Deposit
Policies and
Procedures - 10/2015
10/27/2015
11/30/2015 Moderate
Finance &
Business
Services
IACS recommends Treasury Services work with General Accounting
and the Office for Advancement of Research and Scholarship to
revise the online deposit survey. Required information describing
what was sold and the purpose of the sale should be added to assist
the Tax and Compliance Coordinator in determining if the proceeds
were subject to sales tax.
Cyndi
Ripberger,
Associate
Director of
Investments
and Treasury
Services
On 10/26/2015, management concurred stating, "As a user of the
deposit survey created by the office of Advancement of Research
and Scholarship in conjunction with University Advancement,
Treasury will continue to modify the survey as needed to provide
useful information to all departments using the data collected.
Dialogue has been initiated with the General Accounting staff to
determine what additional information might be needed to meet
their needs concerning collection of sales tax information. To date,
no response has been received. Action will be taken once a
response has been received and approved by the Lean team that
developed the survey."
8
Attachment I
Overall Page 158 of 204
Attachment Page 8 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
Date
Opened
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23.2 - Audit of Student
Health Services -1/2010
1/26/2010
Date
Due
Risk
Level
12/31/2015 Low
Division
Finance &
Business
Services
Recommendation
It is recommended that correct coding be used for the Bursar
interface related to the transfer of the receivable balance from the
insurance company to the student; the credit should be posted to
the insurance receivable account rather than revenue for a second
time. In addition, the insurance provider allowance write-off
recognized should be supported by PyraMed detail. Finally, the
PyraMed and Banner systems should be reconciled monthly, rather
than annually.
Responsible
Person
Sarah
Persinger,
Controller
Management Response and Status
IACS performed follow-up audits closing the first and second parts of
the recommendation. The final part of the recommendation
concerning reconciling PyraMed and Banner remains open given
ongoing unreconciled differences. In a 5/2015 update, the
Controller stated that the EPIC system is currently in use for new
activity in SHS and no old activity will be transferred into the new
system.
In a 11/2015 update, the Controller stated, "There continues to be
collection activity and receipts received for the prior outstanding
A/R balance from SHS in the Pyramed system due to rebilling actions
by the Tri-Health staff. As long as the collection activity is successful,
the A/R balance will not be written off. At the point there are no
more collections to be received from the prior balances, the
remaining amount will be written off."
23
114.1 - Goggin Pro Shop
Inventory - 8/2014
24
8/22/2014
6/30/2015 Low
Finance &
Business
Services
It is recommended that management analyze inventory turnover to
measure its inventory management efficiency, ensure inventory is
current, and benchmark this data to other operations.
Kevin Ackley, Sr
Dir of Goggin
Ice Center
IACS performed a follow-up of this issue at the 6/30/15 fiscal yearend. Although efforts were made in this area, the cost numbers
used in calculations were drawn from a malfuntioning report using
the prior CLASS system. In a 11/2015 update, management reported
that relevant reports for turnover calculations are not yet available
in the new system, MaxGalaxy. As such this issue remains open.
78.1a - Middletown
Business Office Audit 9/2014
9/4/2014
10/4/2014 Low
Academic
Affairs
In order to strengthen controls surrounding cash handling, it is
recommended that the Middletown Business Office segregate duties
by having an independent person separate from cash receiving
prepare the bank deposit.
Chris Connell,
Senior Director
of
Administration
On days when we have a full staff of three, we will have two staff
receive payments and the third staff member will prepare the
deposit. Days when the office is down to two staff, both will receive
payments and both will prepare the deposit slip (and initial it)
together. Management reported that the new procedures were
implemented on 10/20/14 for both the Middletown and Hamilton
Business/Cashier Offices on days when the office is down to two
staff. IACS has a follow-up audit in process 11/2015.
25
78.1b - Middletown
Business Office Audit 9/2014
9/4/2014
10/4/2014 Low
Academic
Affairs
In order to strengthen controls surrounding cash handling, it is
recommended that the Middletown Business Office have the Cashier
Supervisor review all voids and any on-site refunds for validity.
Chris Connell,
Senior Director
of
Administration
Management concurred 9/2014 and stated, "A policy will be
implemented immediately mandating that any cashier issuing a void
or a refund must print the second page of the TGACREV screen and
give the hard copy to the Cashier Supervisor. The Cashier Supervisor
will initial, date and file each void/refund in a separate folder for
each cashier, in order to investigate (if needed) or to track the
frequency of all voids/refunds. It is agreed that tracking this
information would help identify problem areas (if any arise)." In a
10/2014 update, management reported that the new procedure was
implemented for both campuses 9/10/14. IACS has a follow-up
audit in process 11/2015.
26
78.1c - Middletown
Business Office Audit 9/2014
9/4/2014
11/4/2014 Low
Academic
Affairs
In order to strengthen controls surrounding cash handling, it is
recommended that the Middletown Business Office deposit cash
receipts within the required one business day for deposits exceeding
$1K or within three days if the deposit is $1K or less.
Chris Connell,
Senior Director
of
Administration
In a 10/2014 update, management reported that as of 10/01/14
Dunbar Armed Services began 5 days per week pick ups at both
MUM & MUH Campuses. IACS has a follow-up audit in process
11/2015 to verify that this change resolved the issue.
27
78.2 - Middletown
Business Office Audit 9/2014
9/4/2014
10/4/2014 Low
Academic
Affairs
It is recommended that the Middletown Campus periodically read
the cellular tower's electricity meter and compare the reading to the
electricity costs recovered from Cincinnati Bell.
Chris Connell,
Senior Director
of
Administration
Management agreed and stated that effective 10/1/14, that Steve
Brown (MUM PFD) is taking a picture of the cellular tower's
electricity meter and sending it to Tony Ferraro (Energy
Management Engineer, Oxford) who is doing the comparison of the
meter reading to the electricity costs recovered from Cincinnati
Bell. IACS has a follow-up audit in process 11/2015 to verify that
this issue has been resolved.
9
Attachment I
Overall Page 159 of 204
Attachment Page 9 of 14
Attachment I
Internal Audit
December 3, 2015
Open Internal Audit Issues
Line
Audit Name And Date
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78.3 - Middletown
Business Office Audit 9/2014
9/4/2014
10/4/2014 Low
Academic
Affairs
It is recommended that the Middletown Business Office periodically
reconcile the change fund and document key change fund
information to enable another employee to perform important tasks
when needed. Topics covered should include the employee or
position responsible for the fund, where the fund is located, how
often to reconcile it in total, how to return portions of the change
fund, and what to do when there is an overage or shortage.
Chris Connell,
Senior Director
of
Administration
Management agreed and stated that key change fund information
has been documented and effective 9/4/14, the Cashier Office at
both MUM & MUH began counting the funds every two weeks and
recording the totals in a book that is kept in the Cashier Office. IACS
has a follow-up audit in process 11/2015.
29
113.1d - Recreational
Sports Center Pro Shop
Inventory Audit 9/2014
9/4/2014
6/30/2015 Low
Finance &
Business
Services
In order to strengthen internal controls over inventory, it is
recommended that management analyze inventory turnover to
measure its inventory management efficiency, ensure inventory is
current, and benchmark this data to other operations.
Tara Britton,
Dir Cust Service
& Sponsorship
IACS performed another audit at fiscal year end 6/30/2015.
Although efforts were made in this area, the cost numbers used in
calculations were drawn from a malfunctioning report using the
prior CLASS system. The new system, MaxGalaxy, has yet to develop
relevant reports for turnover calculations and this issue remains
open.
Date
Opened
Date
Due
Risk
Level
Division
Recommendation
Responsible
Person
Management Response and Status
In a 10/2015 update, management reported, "The new system,
MaxGalaxy, is still developing the necessary reports to complete
Inventory Turnover Ratio, but they are in active development by the
company."
30
116.2 - Review of FirstYear International
Student Enrollment1/2015
1/6/2015
8/1/2015 Low
Academic
Affairs
To improve communication with international students, it is
recommended that International Student and Scholar Services (ISSS)
management within Global Initiatives further consider implementing
online pre-orientation modules. Use of online modules rather than
the orientation email series may improve efficiency and
effectiveness of communication. Email and other forms of
communication could also be used to reinforce important
information.
Cheryl Young,
Assistant
Provost
Management concurred stating, "We agree with this
recommendation. Modules available to international students
online, covering all of the critical topics communicated in the series
of e-mails and perhaps others, is a goal we will work toward. There
are some roadblocks in this, the most significant of which is the
“Great Firewall of China” which blocks any Google related websites,
and other American and European websites and servers. For this
project, this is not insurmountable, and we will go into the
development of these modules with this in mind and work toward
delivery of the modules in an internet environment that is accessible
for students and their parents."
In a 10/15 update, management stated, "ISSS staff have been
working with the provider developing the modules from our content.
There are three parts - Part 1 is at the narration stage and will launch
on 11/30/15 for new and transfer students coming in the spring. Part
2 is in editing, and Part 3 will go to editing on 10/25/15 and will
launch by 12/15/15."
31
130.1 - MiTech Repair
Center – Control of
Computers
8/18/2015
11/18/2015 Low
Finance &
Business
Services
In response to a police investigation regarding theft of computers,
IACS reviewed internal controls at the Miami University Bookstore’s
MiTech Repair Center. IACS reviewed the repair center’s procedures
and made six recommendations to strengthen internal control of
both client owned computers and University loaner computers.
Joseph Martin,
Dir Tech Sales
Serv Bookstore
Management agreed with all points to strengthen internal control.
As of 10/2015, management believes that they have addressed all
the audit recommendations except for number 6, related to
maintaining a list of Miami loaner computers recycled and sent for
disposal in accordance with University procedure. Plans are to write
and implement a policy to address this. IACS has a follow-up review
scheduled for fourth quarter, FY 2016.
10
Attachment I
Overall Page 160 of 204
Attachment Page 10 of 14
Attachment I
Internal Audit
December 3, 2015
Closed Internal Audit Issues
Line
Audit Name And Date
1
116.1 - Review of FirstYear International
Student Enrollment1/2015
2
83.1c - Parking Garage
Cash Handling - 6/2013
Date
Opened
Risk
Level
1/6/2015 Moderate
6/17/2013 Low
Division
Responsible
Person
Enrollment
Management
& Student
Success
Upon confirmation of enrollment, it is recommended that the Office
of the Bursar work with International Student and Scholar Services
(ISSS) within Global Initiatives to provide detailed billing and payment
information to international students and/or their families. This
should include information about all forms of payment and note how
billing is managed (currently only on myMiami).
Kriss Cassano,
Bursar
IACS performed a follow-up review and confirmed that the Office of the Bursar
worked with International Student and Scholar Services within Global Initiatives to
provide detailed billing and payment information for international students.
Comment closed 9/21/2015.
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Finance &
Business
Services
It is recommended Parking Services strengthen internal controls over
cash handling by having management:
George
MacDonald,
Assistant
Director Parking
and
Transportation
Services
IACS met with George MacDonald and Tommy Jessie on 6/23/2015 to review
deposits made during 1/1/2015 - 5/31/2015. Twelve deposit samples were
reviewed and all were made on a timely basis in compliance with Ohio Revised
Code and the Departmental Cash Handling Policy. It appears procedures are now in
place to make timely deposits. Comment closed 6/29/2015.
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Cheryl Stewart,
Coordinator/Spe
ech Path Audio
Clinic
Status 10/27/2015: IACS performed an audit of the Speech and Hearing Clinic and
issued the original report in February 2014. The focus of the review was financial
receipt processing procedures and management of accounts receivable. The audit
issues have all been closed except for this issue pertaining to making timely
deposits in accordance with ORC 9.38 and the University Cash Handling Policy.
Although the Clinic Coordinator agreed to comply and stated that procedures were
implemented for ​making timely deposits​, follow-up audits indicate they have not
been successful. In the most recent (fifth) follow-up audit performed 10/7/15, two
out of ​twelve exceptions were noted. Given this is a compliance matter, the issue
was referred to General Counsel's Office. General Counsel would like to meet with
Director of IACS , the department Chair and the Clinic Coordinator to discuss the
need for compliance.
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c. Ensure deposits are made on a timely basis in compliance with the
Ohio Revised Code and the Departmental Cash Handling Policy. This
will also improve cash flow and reduce the risk of loss.
3
76.2b - Audit of Speech
& Hearing Clinic 2/2014
2/17/2014 Low
Management Response and Status
Recommendation
Academic
Affairs
It is recommended the Clinic comply with the Departmental Cash
Handling Policy to strengthen internal controls over cash handling as
follows.
B. Ensure deposits are made timely in compliance with University
and legal requirements.
Status 11/4/2015: General Counsel, the Director of IACS , the department Chair
and the Clinic Coordinator met 11/4/2015. The Clinic Coordinator provided
assurance that daily deposits will be made and backups are in place as needed.
Given that the matter has been reviewed with General Counsel and management
has provided assurance of compliance, this comment was closed 11/4/2015.
4
97.1a - Audit of Expense
Accounts – Dean of
Education, Health, &
Society - 4/2014
4/22/2014 Low
Academic
Affairs
It is recommended the Office of Education, Health, and Society
comply with the MU Purchasing Card Policy and Procedure by using
the University P-Card to purchase airline tickets and other travel
related expenses, rather than requesting reimbursement after using
a personal card.
Michael
Dantley, College
of Education
Health &
Society, Dean &
Professor
Dean Feyten concurred 4/14 and responded, "Personnel in the EHS Dean’s office
will be made aware immediately that all travel expenses need to be paid on a
university credit card. Personnel that travel frequently will be issued a university PCard. We will have P-Cards in place for frequent travelers by July 1, 2014. EHS
Dean’s office will make our five departments aware of issues found during audit so
departments are in compliance."
In a 10/14 update, the Interim Dean stated, "A P-card was issued to each
chair/dean's staff etc and they will use that card instead of a personal credit card."
Based on a follow-up audit of the period 11/1/2014 - 6/30/2015, the Office of
Education, Health, and Society appears in compliance. One exception out of twelve
travel expenses tested was noted and appropriate action was taken to address it.
Comment closed 11/6/2015.
5
97.1b - Audit of Expense
Accounts – Dean of
Education, Health, &
Society - 4/2014
4/22/2014 Low
Academic
Affairs
It is recommended the Office of Education, Health, and Society
comply with §4.11 of the University Purchasing and Payments
Handbook by obtaining prior approval from IT Services for purchases
of software. Software selling for over $100 should be processed by a
Request for Purchase Order requisition and forwarded to IT Services
for review and approval.
Michael
Dantley, College
of Education
Health &
Society, Dean &
Professor
Dean Feyten concurred 4/2014 and responded, "The EHS Coordinator of
Technology and Computer Support has already implemented an email process to
gain prior approval from IT services for software under $500. If software purchase
is approved by IT, we will place a copy of email with credit card order. All other
requests for software will be processed through Buyway."
In a 10/2014 update, EHS IT stated that they are following this procedure, where all
purchases over $100 are routed through IT Services for approval to purchase or
purchase through their office. IACS completed a follow-up audit 11/2015
concluding controls appear in place. Comment closed 11/6/2015.
11
Attachment I
Overall Page 161 of 204
Attachment Page 11 of 14
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Attachment I
Internal Audit
December 3, 2015
Closed Internal Audit Issues
Line
Audit Name And Date
Date
Opened
6
97.2b - Audit of Expense
Accounts – Dean of
College of Arts and
Science - 5/2014
5/15/2014 Low
Risk
Level
Division
Academic
Affairs
Recommendation
Responsible
Person
It is recommended the College of Arts and Science comply with §4.05
and §4.11 of the University Purchasing and Payments Handbook by
obtaining prior approval from IT Services for purchases of IT assets
and software. Software selling for over $100 should be processed by
a Request for Purchase Order requisition and forwarded to IT
Services for review and approval.
Christopher
Makaroff, Dean,
College of Arts
and Science
Management Response and Status
Dean Callahan agreed and provided the following action plan:
Action: CAS will comply with policy and procedure. Dean will remind
chairs/directors to obtain prior approval before acquiring any IT assets. Also, ask
chairs/directors to have administrative assistants to ascertain the use of the card
before allowing faculty to use it and only release it for appropriate use.
In a 10/2014 update, Dean Callahan stated, "Reminders are given to chairs and
directors periodically, and particularly after we seek equipment requests and when
tech fee proposals are funded."
IACS completed a follow-up audit 11/2015. It appears appropriate action has been
taken to address this issue. Comment closed 11/6/2015.
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97.2a - Audit of Expense
Accounts – Dean of
College of Arts and
Science - 5/2014
5/15/2014 Low
Provost
It is recommended the College of Arts and Science comply with the
MU Purchasing Card Policy and Procedure by using the University PCard to purchase airline tickets and other travel related expenses,
rather than requesting reimbursement after using a personal card.
Christopher
Makaroff, Dean,
College of Arts
and Science
IACS performed a follow-up audit 7/2015 reviewing documentation for twelve
travel related expenditures recorded in Banner between 10/1/2014-5/31/2015. In
ten cases, a University P-Card was appropriately used to purchase airline tickets and
other travel related expenses, rather than requesting reimbursement after using a
personal card. The two cases where a P-Card was not used appear reasonable. It
appears appropriate action has been taken by the College of Arts and Science to
comply with the Miami University's Purchasing Card Policy and Procedure.
Comment closed 7/21/2015.
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97.3a - Audit of Expense
Accounts – Dean of
College of Engineering
and Computing - 5/2014
5/27/2014 Low
Academic
Affairs
It is recommended the College of Engineering and Computing comply
with §4.05 and §4.11 of the University Purchasing and Payments
Handbook by obtaining prior approval from IT Services for purchases
of IT assets and software. Software selling for over $100 should be
processed by a Request for Purchase Order requisition and forwarded
to IT Services for review and approval.
Marek Dollar,
Dean of College
of Engineering &
Computing
IACS performed a follow-up audit for the period 9/1/2014-5/31/2015, reviewing IT
equipment purchases (greater than $1,500) and software purchases (greater than
$100). It appears CEC is obtaining the approval of IT Services as required.
Comment closed 9/21/2015.
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9
97.3b - Audit of Expense
Accounts – Dean of
College of Engineering
and Computing - 5/2014
5/27/2014 Low
Academic
Affairs
It is recommended the College of Engineering and Computing comply
with the MU Purchasing Card Policy and Procedure by discontinuing
the purchase of restricted items unless an exception to the policy is
received from the Chief Procurement Officer. In addition, P-Cards
should be used to purchase items listed as "other travel related
expenses", rather than requesting reimbursement after using a
personal card.
Marek Dollar,
Dean of College
of Engineering &
Computing
IACS performed a follow-up audit for the period 9/1/2014 - 5/31/2015. No
restricted item purchases were noted; however, a personal credit card was used
rather than a University P-Card as required by the Purchasing Card Policy and
Procedure. Corrective action was implemented, as verified in a subsequent review
of 9/2015 travel. Comment closed 11/6/2015.
93A
7bu
d
i
10
97.3c - Audit of Expense
Accounts – Dean of
College of Engineering
and Computing - 5/2014
5/27/2014 Low
Academic
Affairs
It is recommended the College of Engineering and Computing charge
expenses to the correct account code as defined on General
Accounting's website (Chart of Accounts). In addition, comply with
§7.00 of the Hosting Policies and Procedures by completing required
documentation for hosting expenditures.
Marek Dollar,
Dean of College
of Engineering &
Computing
IACS performed a follow-up audit for the period 9/1/2014 - 5/31/2015. Based on
this review, it appears CEC charges expenses to the correct account codes and
completes the required documentation for hosting expenditures. Comment closed
9/21/2015.
93A
7cu
d
11
113.1b - Recreational
Sports Center Pro Shop
Inventory Audit 9/2014
9/4/2014 Low
Finance &
Bus. Svc.
In order to strengthen internal controls over inventory, it is
recommended that management perform random cyclical counts for
all types of inventory held and correct any discrepancies in the
system.
Tara Britton, Dir
Cust Service &
Sponsorship
IACS performed a follow-up audit at fiscal year-end 6/30/2015. Based on a review
of count sheets dated from February to June 2015, cycle counts were conducted at
least monthly and different categories of items were counted each time.
Therefore, this issue was closed 7/16/2015.
1R
1be
12
113.1c - Recreational
Sports Center Pro Shop
Inventory Audit 9/2014
9/4/2014 Low
Finance &
Bus. Svc.
In order to strengthen internal controls over inventory, it is
recommended that management review inventory items for
unreasonable costs in system reports to detect and correct input
errors.
Tara Britton, Dir
Cust Service &
Sponsorship
IACS reviewed the reasonableness of unit costs in the 6/30/2015 year-end
inventory valuation report and noted 40 out of 763 items with no ($0) unit cost.
These errors were subsequently corrected when brought to management's
attention. Management stated that the errors were caused by oversight when data
was entered into the new system that an ongoing review of the unit costs is in
place. IACS will continue to monitor the item costs in system reports when
following up on another open audit issue (113.1d) related to turnover analysis. For
this reason, this issue was closed 7/16/2015.
1R
1ce
3c
r
e
12
Attachment I
Overall Page 162 of 204
Attachment Page 12 of 14
Attachment I
Internal Audit
December 3, 2015
Closed Internal Audit Issues
Line
Audit Name And Date
Date
Opened
13
112.1a - Central Stores
Inventory Report 9/2014
9/17/2014 Low
14
112.1b - Central Stores
Inventory Report 9/2014
15
16
Division
Management Response and Status
Recommendation
Responsible
Person
Finance &
Bus. Svc.
In order to strengthen internal controls over inventory, it is
recommended that management perform regular cyclical counts of
inventory to compare what they do have in stock with what they
should have in stock.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
IACS performed a follow-up audit at fiscal year-end 6/30/2015. A student
employee position was filled 5/11/2015 to dedicate at least 15 hours per week to
cycle count items not vendor managed by Grainger. The vendor-managed items
are counted on a weekly basis. Given that management states the student position
will be maintained and dedicated to at least 15 hours per week of cycle counting,
this comment was closed 7/14/2015.
1C
1ae
2n
9/17/2014 Low
Finance &
Bus. Svc.
In order to strengthen internal controls over inventory, it is
recommended that management analyze relevant data to measure
its efficiency over inventory, ensure that inventory is current, forecast
buying needs, and benchmark to other operations.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
IACS performed a follow-up audit at fiscal year-end 6/30/2015. Central Stores
identified and removed a large quantity of obsolete parts during FY15, and has
begun identifying more parts to dispose during FY16. It appears procedures were
implemented for analyzing inventory trends and addressing obsolete and excess
parts. Comment closed 7/14/2015.
1C
1be
2n
112.2 - Central Stores
Inventory Report 9/2014
9/17/2014 Low
Finance &
Bus. Svc.
It is recommended that management further investigate valuing the
physical inventory in accordance with the procedures issued by
General Accounting.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
IACS performed a follow-up audit at fiscal year-end 6/30/2015. Management
reported that TMA continues to work on improving the functionality of the
software (including inventory valuation) but adding FIFO valuation will take time to
accomplish. The FY15 inventory was reported using average cost. Given that
General Accounting's procedure is to confirm Central Stores' valuation method
each year and include an appropriate inventory footnote in the University financial
report, comment closed 7/14/2015.
12C
1e
2n
t
115.3a - Audit of
Change Funds- Library10/2014
11/7/2014 Low
Academic
Affairs
It is recommended that management:
Belinda Barr,
Associate
Librarian
IACS performed a follow-up to review deposits made between 1/1/2015-6/1/2015
and found that deposits were made timely as required. Comment closed
8/17/2015.
13A
1au
115.3d - Audit of
Change Funds- Library10/2014
11/7/2014 Low
Belinda Barr,
Associate
Librarian
IACS performed a follow-up audit and verified that the Library has implemented
proper procedures for collecting and accounting for sales tax in partnership with
the Tax and Compliance Coordinator in the Controller's Office. Comment closed
8/18/2015.
13A
1du
18
115.1a - Audit of
Change Funds- Shriver
Center- 10/2014
11/7/2014 Low
Finance &
Business
Services
It is recommended that management ensure vending deposits are
made intact and include supporting documentation. In addition,
management should work with Treasury Services in the future to
adjust funds as needed.
James W. Baker
Jr., Associate
Director of
Shriver Center
IACS performed a follow-up audit and verified that vending deposits now include
supporting documentation that is reviewed by the HDRBS Auxiliary Business Office.
If change funds need adjustment, management's procedure is to work with
Treasury Services. Comment closed 9/29/2015.
1A
1au
19
115.2a - Audit of
Change Funds- Shriver
Center- 10/2014
11/7/2014 Low
Finance &
Business
Services
To strengthen internal controls over the vending portion of the
change fund, it is recommended that management:
James W. Baker
Jr., Associate
Director of
Shriver Center
IACS performed a follow-up audit and verified that Vending Services has
documented how the change fund is distributed by location. The total agrees with
Treasury Services detail of the balance recorded in Banner. Comment closed
9/29/2015.
12A
1au
5d
James W. Baker
Jr., Associate
Director of
Shriver Center
IACS performed a follow-up audit and verified that Vending Services is now using a
change fund verification sheet and counting the safe regularly. Comment closed
9/29/2015.
12A
1bu
5d
Kristin Kieffer,
Assistant
Director of IT
Communications
IACS performed a follow-up audit requesting documentation for twelve randomly
selected deposits made by the Print Center between 3/10/2015 - 5/31/2015. All
sampled deposits were made on a timely basis. It appears the Print Center has
procedures in place to deposit cash receipts in accordance with Miami University's
cash handling policy and the Ohio Revised Code. Comment closed 7/6/2015.
1A
1bu
5d
17
Risk
Level
A. Ensure deposits are made on a timely basis in compliance with the
Ohio Revised Code and the Departmental Cash Handling Policy.
Academic
Affairs
It is recommended that management:
D. Collect and account for sales tax as required by working with the
Tax and Compliance Coordinator in the Controller's Office.
A. Document how the change fund is distributed by location and work
with Treasury Services to increase the balance recorded in Banner to
reflect the fund's current amount.
20
115.2b - Audit of
Change Funds- Shriver
Center- 10/2014
11/7/2014 Low
Finance &
Business
Services
To strengthen internal controls over the vending portion of the
change fund, it is recommended that management:
B. Balance the fund each day there is activity in or out of the fund and
at least weekly.
21
115.1b - Audit of
Change Funds- Print
Center- 11/2014
11/14/2014 Low
Finance &
Business
Services
It is recommended that the Print Center deposit cash receipts in
accordance with Miami University's cash handling policy and the Ohio
Revised Code. Amounts greater than $1000 should be deposited by
the following business day. Amounts $1000 and less have up to three
business days following the day of receipt to be deposited, if properly
safeguarded.
13
Attachment I
Overall Page 163 of 204
Attachment Page 13 of 14
Attachment I
Internal Audit
December 3, 2015
Closed Internal Audit Issues
Line
Audit Name And Date
Date
Opened
22
112.1 - Audit of Central
Stores Physical
Inventory - 7/2015
7/23/2015 Low
Risk
Level
Division
Finance &
Business
Services
Recommendation
Responsible
Person
IACS recommends Central Stores management establish and
document departmental procedures for performing year-end physical
inventory. The procedures should include the following.
Sandra Mohr,
Director of
Operations
Center/Facility
Central Stores
•Take the physical inventory count as close to June 30 as possible,
adjusting as needed for any transactions (including fuel) to reflect
quantities as of midnight June 30.
•Double count all inventory counts and/or have a supervisor spot
check counts and adjustments.
•Run the inventory report and check extensions and totals. Repeat
this process if count corrections are required.
•Communicate the valuation method (FIFO or other) to General
Accounting
Management Response and Status
Management concurred stating, "Management agrees to all recommendations and
will establish and document the departmental procedures by 9/30/2015." IACS
reviewed a 11/4/2015 Inventory Process document and it appears management
has established and documented departmental procedures for performing year-end
physical inventory. Comment closed 11/4/2015.
o
f
14
Attachment I
Overall Page 164 of 204
1A
1u
2d
i
t
Attachment Page 14 of 14
Attachment J
Forward Agenda
December 3, 2015
DRAFT
Forward Twelve Month Agenda
December February
April Fall Winter Spring Meeting Meeting Meeting
Agenda Item
Committee Structure:
 Committee Priority Agenda
 Committee Self‐Assessment
x
Strategic Matters and Significant Topics Affecting Miami:
 Annual Campaign Update
 Annual Report on the State of IT
 Health Benefit Strategic Indicators
 Guaranteed Tuition
 Strategic Update on Enrollment Planning
x
x
June
End of Year Meeting
September
Beginning of Year Meeting
x
x
x
Business Session
Item 11 x
x
x
x
x
Regular Agenda Items:
 Enrollment Report
 Report on Year‐to‐Date Operating Results
 Approval of Minutes of Previous Meeting
 Annual Report on Operating Results
x
x
x
Finance and Accounting Agenda:
 Budget Planning for New Year
 Appropriation Ordinance (Budget)
 Tuition and Fee Ordinance
 Miscellaneous Fee Ordinance
 Room and Board Ordinance
 Review of Financial Statements
 Annual State of Ohio Fiscal Watch Report
 PMBA Tuition Proposal
 Regional Campuses Long‐term Budget Plan
 Update the Long‐term Budget Plan‐‐Oxford Campus
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Audit and Compliance Agenda:
Planning Meeting with Independent Auditors
 Management Letter and Other Required Communications
 Annual Planning Meeting with Internal Auditor
 Annual Report by Internal Auditor
 Annual Compliance Report
 Risk Assessment Report x
x
x
x
x
x
x
x
(over)
Attachment J
Overall Page 165 of 204
Attachment Page 1 of 2
Attachment J
Forward Agenda
December 3, 2015
DRAFT
Forward Twelve Month Agenda
December February
April Fall Winter Spring Meeting Meeting Meeting
Agenda Item
June
End of Year Meeting
September
Beginning of Year Meeting
Investment Agenda:
 Semi‐Annual Review of Investment Performance
 Non‐Endowment Return Objectives x
Facilities Agenda:
 Approval of Six‐Year Capital Plan (every other year)
 Facilities Condition Report
 Annual Report of Gift‐Funded Projects
 Status of Capital Projects
x
x
x
x
x
x
x
Routine Reports:
 University Advancement Update
 Cash and Investments Report
 Lean Project Summary
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Attachment J
x
x
x
Overall Page 166 of 204
Attachment Page 2 of 2
Attachment K
Advancement Update
December 3, 2015
Board of Trustees
December 4, 2015
Attachment K
Overall Page 167 of 204
Attachment Page 1 of 20
Attachment K
Advancement Update
December 3, 2015
University Advancement Report
Tom Herbert, J.D.
Vice President, University Advancement
Executive Director, Miami University Foundation
Attachment K
Overall Page 168 of 204
Attachment Page 2 of 20
Attachment K
Advancement Update
December 3, 2015
Topics
• 2020 Plan Fundraising Update
• Fundraising Focus in FY’16
• Update of New Advancement Initiatives
Attachment K
Overall Page 169 of 204
Attachment Page 3 of 20
Attachment K
Advancement Update
December 3, 2015
2020 Plan Fundraising Update
Attachment K
Overall Page 170 of 204
Attachment Page 4 of 20
Attachment K
Advancement Update
December 3, 2015
2020 Plan Fundraising Update
$70,000,000
$65,000,000
$65,800,000
$60,000,000
$59,900,000
FY Goals
$55,000,000
$54,400,000
$50,000,000
$49,500,000
$45,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$40,900,000
$37,200,000
$33,800,000
FY13
Attachment K
FY14
FY15
FY16
FY17
Overall Page 171 of 204
FY18
FY19
FY20
Attachment Page 5 of 20
Attachment K
Advancement Update
December 3, 2015
2020 Plan Fundraising Update
FY’16:
• Goal : $45,000,000
• Raised to date: $20,865,000 (46% of goal)
Attachment K
Overall Page 172 of 204
Attachment Page 6 of 20
Attachment K
Advancement Update
December 3, 2015
2020 Plan Fundraising Update
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
FY’16
Attachment K
Overall Page 173 of 204
Attachment Page 7 of 20
Attachment K
Advancement Update
December 3, 2015
Fundraising Focus FY’16
Attachment K
Overall Page 174 of 204
Attachment Page 8 of 20
Attachment K
Advancement Update
December 3, 2015
MoveInMiami
• Goal: 2,019 donors on Move In Day (20 hours, 19 minutes)
• Total: 3,281 donors, $672,757 (2014: $506,371)
Attachment K
Overall Page 175 of 204
Attachment Page 9 of 20
Attachment K
Advancement Update
December 3, 2015
Miami Promise Scholarship Campaign
• Publicly launched Fall ’14
• $100 million goal over 5 years
• Matching programs developed
• Scholarship stewardship upgraded
Attachment K
Overall Page 176 of 204
Attachment Page 10 of 20
Attachment K
Advancement Update
December 3, 2015
Miami Promise Scholarship Campaign FY goals
• FY’15: $18.0 million -- $19.8 million raised
• FY’16: $18.0 million -- $4.3 million received to date
• FY’17: $18.7 million
• FY’18: $20.7 million
• FY’19: $24.6 million
Attachment K
Overall Page 177 of 204
Attachment Page 11 of 20
Attachment K
Advancement Update
December 3, 2015
Miami Promise Scholarship Campaign
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
goal
$20,000,000
received
Attachment K
Overall Page 178 of 204
Jun-19
Apr-19
Feb-19
Dec-18
Oct-18
Aug-18
Jun-18
Apr-18
Feb-18
Dec-17
Oct-17
Jun-17
Aug-17
Apr-17
Feb-17
Dec-16
Oct-16
Aug-16
Jun-16
Apr-16
Feb-16
Dec-15
Oct-15
Aug-15
Jun-15
Apr-15
Feb-15
Dec-14
Oct-14
Overall
Aug-14
$-
1-Jul
$10,000,000
Attachment Page 12 of 20
Attachment K
Advancement Update
December 3, 2015
Campaign for Intercollegiate Athletics
• $80 million campaign publicly announced
• Raised $50.4 million to date
Attachment K
Overall Page 179 of 204
Attachment Page 13 of 20
Attachment K
Advancement Update
December 3, 2015
Campaign for Intercollegiate Athletics
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
goal
$10,000,000
received
$-
Attachment K
Overall Page 180 of 204
Attachment Page 14 of 20
Attachment K
Advancement Update
December 3, 2015
Armstrong Student Center East Wing
• Fundraising target: $6 million for East Wing
• $5.2 million raised to date
• In discussions for a $2 million commitment
Attachment K
Overall Page 181 of 204
Attachment Page 15 of 20
Attachment K
Advancement Update
December 3, 2015
The Humanities Center
• Fundraising target: $1.5 million (NEH Challenge Grant, by July 2019)
• FY’15 Fundraising goal of $150,000 achieved
• Raised to date: $246,000
• Goal to qualify for $150,000 FY’16 match: $450,000
Attachment K
Overall Page 182 of 204
Attachment Page 16 of 20
Attachment K
Advancement Update
December 3, 2015
New Advancement Initiatives
• What is next?
• Wealth Screening
• Refreshed info on entire database late November
• Crowdsourcing Implementation
• Allows for student projects to receive donor funding through
a direct web interface
• Staff Additions
• IT, Alumni Relations, Communications
Attachment K
Overall Page 183 of 204
Attachment Page 17 of 20
Attachment K
Advancement Update
December 3, 2015
Pride of Case V Awards
#MoveInMiami
• Gold/Platinum finalist – Best Practices in Fundraising
• Gold – Best Program in Annual Giving
Graduating Champions Campaign Case Statement
• Gold – Best Program in Cultivation Publications
Be Mine Miami, tumblr
• Gold – Best Use of Social Media
Attachment K
Overall Page 184 of 204
Attachment Page 18 of 20
Attachment K
Advancement Update
December 3, 2015
Pride of Case V Awards
#MUThankU (Day Without Donors)
• Bronze – Best Collaborative Program
Endowment Annual Report
• Bronze – Best Program in Donor Recognition
Giving Tribute
• Bronze – Best Tabloid/Newsletter
Attachment K
Overall Page 185 of 204
Attachment Page 19 of 20
Attachment K
Advancement Update
December 3, 2015
Thank you!
Attachment K
Overall Page 186 of 204
Attachment Page 20 of 20
Attachment L
Cash and Investments Report
December 3, 2015
Reporting Update
Item #2
REPORT ON CASH AND INVESTMENTS
Finance and Audit Committee
Miami University
December 3, 2015
Non-Endowment Fund
For the first fiscal quarter ending September 30, 2015, the non-endowment fund
returned -1.3% due to volatility in some absolute return and global debt strategies. The
return for the past year was +0.3%. A summary of performance is attached.
At September 30, the operating cash balance was over $129.2 million, with
receipt of first semester tuition. Short-term interest rates near zero continue to limit the
earnings potential from both the operating cash and core cash portions of the pool.
Current Funds
Operating Cash:
Short-term Investments*
Fair Value
% of Portfolio
$129,188,328
22.2%
Core Cash:
Intermediate-term Investments
$121,319,657
20.8%
Long-Term Capital:
Debt Investments
Absolute Return
Total Long-Term Capital
$107,530,270
$223,949,104
$331,479,374
18.5%
38.5%
57.0%
$581,987,359
100.0%
Total Current Fund Investments
*includes bank account balances not included on performance report
Endowment Fund
The endowment fund preliminary return was -6.7% for the first fiscal quarter
ending September 30, 2015. This figure excludes the September quarter results for the
private capital investments, which report on a significant time lag. The final performance
for the 2015 fiscal year, after receiving all the private capital valuations, was +1.0%.
Results during the recent quarter reflected significant volatility in the global public equity
market and continued drawdowns in the global natural resources market.
The Miami University Foundation Investment Committee met on November 4,
2015 in Oxford. Please see the attached performance report for additional endowment
related details. At this meeting, the committee adopted a new strategic allocation policy
1
Attachment L
Overall Page 187 of 204
Attachment Page 1 of 11
Attachment L
Cash and Investments Report
December 3, 2015
which will use new investment classifications and strategic ranges. This approach
attempts to organize investments by return drivers and risk factors.
Bond Project Funds
Construction activity continued steadily through the summer and fall.
Approximately $23.5 million in draws were made during the September quarter. As of
September 30, 2015, the balances were as follows:
Plant Funds
Series 2011 Bond Project Fund
Series 2012 Bond Project Fund
Series 2014 Bond Project Fund
Total Plant Funds
$ 5,281,893
$ 15,653,105
$126,102,020
$147,037,018
Attachments
Non-endowment Performance Summary as of 9/30/2015
MUF Treasurer’s Report as of 9/30/2015
2
Attachment L
Overall Page 188 of 204
Attachment Page 2 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Non-Endowment
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
CYTD
Total Composite
-1.3%
-0.1%
0.3%
2.3%
2.4%
2.1%
Operating Cash
U.S. 91-Day Treasury Bills
BlackRock
U.S. 91-Day Treasury Bills
Star Ohio
U.S. 91-Day Treasury Bills
Chase Savings
U.S. 91-Day Treasury Bills
STAROhio Plus
U.S. 91-Day Treasury Bills
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.2
0.0
0.1
0.1
0.0
0.1
0.0
0.1
0.1
0.1
-
Core Cash
Barclays 1-3 Yr U.S. Gov't Bond Index
Bartlett A
Barclays 1-3 Yr U.S. Gov't Bond Index
Bartlett B
Barclays 1-3 Yr U.S. Gov't Bond Index
Commonfund Intermediate Bond Fund
Barclays 1-5 Yr Treasury Index
M.D. Sass - 3 Year
Barclays Interm. Gov't Bond Index
M.D. Sass - 2 Year
Barclays Interm. Gov't Bond Index
0.6
0.3
0.3
0.3
1.0
0.3
0.3
0.7
0.9
1.2
0.3
1.2
1.3
1.0
0.9
1.0
1.7
1.0
1.1
1.6
1.7
2.0
0.9
2.0
1.9
1.2
1.1
1.2
2.7
1.2
1.3
2.1
2.6
3.0
1.3
3.0
1.1
0.7
0.5
0.7
1.2
0.7
1.2
0.9
1.5
1.1
1.2
1.1
-2.3
-9.5
1.2
-0.3
-7.0
1.1
0.2
-6.7
2.9
4.3
7.0
1.7
Long Term Capital
MSCI AC World Index
Barclays U.S. Aggregate Bond Index
1Yr
3Yr
5Yr
Inception
Date
Market Value
2.3%
3.3%
6/02
$572,901,760
0.3
0.1
0.2
0.1
-
1.6
1.2
1.7
1.2
-
1.7
1.3
0.1
0.1
1.8
1.3
0.2
0.1
0.2
0.0
6/02
120,102,730
10/08
464,111
6/02
44,135,883
10/08
60,416,209
7/12
15,086,527
2.0
0.8
0.8
0.8
2.3
0.8
2.1
1.2
-
3.1
1.6
1.7
1.6
4.2
1.6
2.5
2.2
-
3.2
2.6
2.5
2.6
4.1
2.6
2.2
3.2
-
3.2
2.5
2.4
2.5
4.0
2.5
2.5
3.1
2.8
2.3
1.2
1.1
6/02
121,319,657
6/02
23,131,424
6/02
30,493,078
6/02
6,310,832
1/11
30,315,765
9/12
31,068,558
4.3
6.8
3.1
3.0
6.0
4.8
2.4
4.6
4.6
4.6
6.4
4.7
6/02
331,479,373
© 2015 Fund Evaluation Group, LLC
Attachment L
7Yr
10Yr
Confidential - For Client Use Only
Overall Page 189 of 204
Attachment Page 3 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Non-Endowment
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Public Debt
Barclays U.S. Aggregate Bond Index
Bartlett C
Barclays U.S. Aggregate Bond Index
Beach Point Loan Fund
CS Leveraged Loan Index
Commonfund High Quality Bond Fund
Barclays U.S. Aggregate Bond Index
Templeton Global Total Return Fund
Barclays Multiverse
Qtr
CYTD
1Yr
3Yr
-1.5%
1.2
1.4
1.2
0.1
-1.2
0.8
1.2
-6.8
0.5
-0.7%
1.1
1.8
1.1
2.7
1.6
1.1
1.1
-6.7
-2.4
-0.4%
2.9
3.2
2.9
3.2
1.2
2.6
2.9
-8.2
-3.6
2.2%
1.7
1.6
1.7
2.5
1.7
0.7
-1.5
5Yr
3.6%
3.1
2.9
3.1
4.0
3.1
-
© 2015 Fund Evaluation Group, LLC
Attachment L
7Yr
6.1%
4.8
5.1
4.8
6.6
4.8
-
10Yr
5.3%
4.6
4.8
4.6
5.5
4.6
-
Inception
Date
Market Value
5.2%
4.7
4.8
4.7
3.9
3.2
5.6
4.7
1.9
0.4
6/02
$107,530,270
6/02
22,400,924
1/13
27,624,456
6/02
27,230,505
5/11
30,274,385
Confidential - For Client Use Only
Overall Page 190 of 204
Attachment Page 4 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Non-Endowment
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Absolute Return
MSCI AC World Index
Barclays U.S. Aggregate Bond Index
ABS Investment Management
MSCI AC World Index
HFRI Fund of Funds Index
Beach Point Total Return Fund
ML High Yield Bond Index
HFRI Event Driven Index
Evanston Weatherlow Fund
HFRI FOF: Diversified Index
S&P 500 Index
GEM Realty Securities LP
MSCI U.S. REIT Index
HFRI Equity Hedge Index
Lighthouse Diversified Fund
MSCI AC World Index
HFRI Fund of Funds Index
Rimrock High Income PLUS Fund
Barclays U.S. Corporate High Yield Index
Barclays U.S. Aggregate Bond Index
Sandler Offshore
MSCI AC World Index
HFRI Equity Hedge Index
SCS Opportunities
MSCI AC World Index
HFRI Fund of Funds Index
SkyBridge Series G
MSCI AC World Index
HFRI Fund of Funds Index
Qtr
CYTD
1Yr
3Yr
5Yr
-2.6%
-9.5
1.2
-2.7
-9.5
-3.3
-3.1
-4.9
-5.5
-4.4
-3.1
-6.4
-3.6
1.8
-5.8
-2.1
-9.5
-3.3
-1.3
-4.9
1.2
1.4
-9.5
-5.8
-1.7
-9.5
-3.3
-6.2
-9.5
-3.3
0.0%
-7.0
1.1
1.4
-7.0
-0.7
0.6
-2.5
-3.2
0.3
-0.8
-5.3
1.1
-7.0
-0.7
0.1
-2.5
1.1
4.1
-7.0
-2.2
-0.8
-7.0
-0.7
-3.3
-7.0
-0.7
0.5%
-6.7
2.9
5.3
-6.7
0.3
-3.0
-3.6
-4.6
1.4
0.2
-0.6
2.5
-6.7
0.3
0.1
-3.4
2.9
8.6
-6.7
-2.2
-0.6
-6.7
0.3
-4.1
-6.7
0.3
6.4%
7.0
1.7
9.0
7.0
4.3
6.8
4.3
12.4
7.0
7.0
4.3
6.0
7.0
4.3
6.3
7.0
4.3
5.1%
6.8
3.1
6.1
6.8
2.7
5.1
2.9
13.3
5.8
6.8
2.7
4.2
6.8
2.7
-
© 2015 Fund Evaluation Group, LLC
Attachment L
7Yr
1.3%
6.0
4.8
-
10Yr
0.8%
4.6
4.6
-
Inception
Date
Market Value
3.6%
6.4
4.7
6.4
9.4
3.5
3.2
1.7
2.4
6.5
3.6
14.7
-5.1
-3.4
-5.8
5.7
8.5
3.0
0.1
-3.4
2.9
3.5
4.5
3.3
4.5
9.4
3.5
7.8
6.7
3.8
6/02
$223,949,103
5/09
26,202,577
3/13
22,672,744
5/09
25,182,246
4/15
23,727,190
5/10
25,955,860
9/14
25,014,183
3/13
25,959,694
5/09
25,019,323
4/12
24,215,286
Confidential - For Client Use Only
Overall Page 191 of 204
Attachment Page 5 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Non-Endowment
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Footnotes:
* Performance returns are net of investment management fees.
* Calculated returns may differ from the manager's due to differences in security pricing and/or cash flows.
* Manager and index data represent the most current available at the time of report publication.
* Hedge fund and private capital manager market values and rates of return may be based on estimates and may be revised until completion of an annual audit by the manager.
* For managers and indices that report returns on a lag, 0.0% is utilized for the most recent time period until the actual return data are reported.
* The fiscal year ends in June.
© 2015 Fund Evaluation Group, LLC
Attachment L
Confidential - For Client Use Only
Overall Page 192 of 204
Attachment Page 6 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Foundation
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
CYTD
1Yr
Total Composite
MUF Custom Index1
CPI + 5.5%
-5.6%
-7.0
1.2
-3.0%
-5.3
4.4
-3.7%
-6.0
5.3
5.2%
4.2
6.5
5.6%
5.4
7.3
4.8%
4.9
6.7
Total Composite ex. Private Capital
-6.7
-4.0
-4.0
4.9
4.9
Total Equity
MSCI AC World Index
S&P 500 Index
-6.2
-9.5
-6.4
-2.5
-7.0
-5.3
-0.8
-6.7
-0.6
7.0
7.0
12.4
-8.4
-9.5
-6.4
-9.6
-9.5
-10.8
-9.5
-7.9
-7.2
-9.5
-9.5
-10.3
-9.5
-10.1
-17.9
-3.4
-9.5
-8.7
-9.5
-5.1
-7.0
-5.3
-3.7
-7.0
-9.7
-7.0
-4.3
-5.4
-2.5
-7.0
-9.7
-15.5
-0.1
-7.0
-4.1
-7.0
-3.7
-6.7
-0.6
-1.4
-6.7
-6.9
-6.7
1.4
-0.5
1.0
-6.7
-12.3
-19.3
2.4
-6.7
-1.3
-6.7
5.7
7.0
12.4
9.8
12.5
-2.4
-5.3
8.3
7.0
-
Public Equity
MSCI AC World Index
S&P 500 Index
Barings
MSCI AC World Index
Harris Oakmark Global Fund
MSCI AC World Index
Lateef Investment Management
Russell 3000 Index
Lone Cascade
MSCI AC World Index
PIMCO RAE Fundamental Global Inst'l
MSCI AC World Index
Virtus Emerging Opportunities
MSCI Emerging Markets Index
Virtus Global Opportunities
MSCI AC World Index
William Blair Global Leaders Fund
MSCI AC World Index
3Yr
5Yr
Inception
Date
Market Value
4.8%
4.6
7.3
9.0%
7.8
4/93
$431,258,272
5.3
4.6
5.9
12/96
357,211,158
6.5
6.8
13.3
5.8
6.0
9.7
5.4
4.6
6.8
6.0
6.3
8.8
3/95
233,328,888
5.6
6.8
13.3
12.1
13.3
-
5.4
6.0
9.7
10.2
9.9
-
4.2
4.6
6.8
-
5.5
5.4
7.2
7.3
6.5
-1.9
-0.1
5.7
5.2
0.2
-1.8
-10.1
-9.1
0.1
-3.9
10.5
7.7
2.4
-0.1
12/96
146,177,967
12/12
24,106,426
10/13
17,709,297
10/07
17,453,499
12/13
4,375,991
3/15
24,246,899
8/11
9,224,405
10/11
29,225,312
10/13
19,836,138
© 2015 Fund Evaluation Group, LLC
Attachment L
7Yr
10Yr
Confidential - For Client Use Only
Overall Page 193 of 204
Attachment Page 7 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Foundation
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
CYTD
1Yr
3Yr
5Yr
Hedged Equity
MSCI AC World Index
HFRI Equity Hedge Index
Evanston Weatherlow Fund
HFRI FOF: Diversified Index
S&P 500 Index
JHL Capital
DJ/CS HFI Long/Short Equity
S&P 500 Index
Marble Arch Offshore Fund
S&P 500 Index
Sandler Capital
MSCI AC World Index
HFRI Equity Hedge Index
Starboard Value
MSCI AC World Index
HFRI Equity Hedge Index
-3.2%
-9.5
-5.8
-4.4
-3.1
-6.4
-3.5
-1.5
-6.4
-1.8
-6.4
1.3
-9.5
-5.8
-7.8
-9.5
-5.8
0.9%
-7.0
-2.2
0.3
-0.8
-5.3
-6.4
1.9
-5.3
11.5
-5.3
4.2
-7.0
-2.2
-6.5
-7.0
-2.2
4.8%
-6.7
-2.2
1.4
0.2
-0.6
8.7
-6.7
-2.2
5.9
-6.7
-2.2
6.9%
7.0
5.0
6.9
4.3
12.4
4.3
7.0
5.0
9.6
7.0
5.0
4.8%
6.8
3.6
5.0
2.9
13.3
-
4.6%
6.0
4.3
5.1
2.4
9.7
-
Private Equity
Thomson One All Private Equity Index
MSCI AC World Index
0.0
0.0
-9.5
5.8
6.2
-7.0
5.0
8.9
-6.7
13.1
13.1
7.0
13.7
12.7
6.8
9.7
9.0
6.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
6.0
13.2
2.8
12.1
-1.1
12.0
4.2
2.6
2.5
5.2
12.1
8.2
20.5
1.0
10.6
1.5
3.8
5.0
13.6
4.3
11.9
13.7
11.3
14.9
20.8
10.1
3.5
14.2
5.1
16.8
13.9
10.6
13.5
21.7
12.9
6.9
9.9
4.7
13.3
10.8
7.4
4.4
13.2
2.6
Buyout Composite
Commonfund International Private Equity III
Commonfund Private Equity IV
Commonfund Private Equity V
Goldman Sachs Private Equity Offshore 2004
Goldman Sachs Private Equity Partners IX
Hamilton Lane Co-Investment Fund II
Hamilton Lane Secondary Fund II
Pomona Capital VI
© 2015 Fund Evaluation Group, LLC
Attachment L
7Yr
10Yr
Inception
Date
Market Value
4.8%
5.5
4.8
6.2
3.0
6.9
-1.2
2.3
-5.5
19.8
-3.0
3.2
6.7
4.2
8.5
6.7
4.2
12/01
$62,152,046
3/04
23,007,980
11/14
9,587,908
10/14
11,457,769
4/12
11,318,878
4/12
6,779,511
11.5
11.0
4.6
10.3
14.5
6.3
3/95
24,998,875
12.0
10.7
14.8
11.3
-5.1
7.2
3.1
10.1
-2.3
-3.9
-0.6
2.9
9.4
-5.1
3/95
6/00
6/00
3/02
11/05
8/07
2/08
10/08
9/05
24,399,768
85,733
112,565
618,871
1,697,628
7,636,715
8,844,884
3,563,481
1,839,891
4.8%
4.6
3.6
6.0
2.5
6.8
-
Confidential - For Client Use Only
Overall Page 194 of 204
Attachment Page 8 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Foundation
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
Venture Capital Composite
Commonfund Venture Capital IV
Commonfund Venture Capital V
0.0%
0.0
0.0
CYTD
1Yr
3Yr
-1.9%
-0.1
-3.4
-1.4%
-2.7
-0.2
-1.6%
-0.4
-0.2
2.5%
4.3
1.9
1.9%
4.7
0.1
5.0%
7.1
2.4
5Yr
7Yr
10Yr
Inception
Date
Market Value
11.1%
3.4
-5.8
4/96
3/99
1/00
$599,107
255,863
343,244
Total Debt
Barclays Multiverse Index
-3.0
0.5
-0.2
-2.4
-0.7
-3.6
6.2
-1.5
6.5
0.9
8.1
3.5
6.1
3.8
6.5
-
12/96
113,816,756
Public Debt
Barclays Multiverse Index
Beach Point Loan Fund
CS Leveraged Loan Index
Commonfund High Quality Bond Fund
Barclays U.S. Aggregate Bond Index
Templeton Global Total Return
Barclays Multiverse Index
-3.6
0.5
0.1
-1.2
0.8
1.2
-6.8
0.5
-2.6
-2.4
2.7
1.6
1.0
1.1
-6.6
-2.4
-3.2
-3.6
3.2
1.2
2.4
2.9
-8.2
-3.6
1.4
-1.5
2.4
1.7
0.7
-1.5
3.4
0.9
3.8
3.1
-
6.1
3.5
6.5
4.8
-
5.1
3.8
5.4
4.6
-
5.8
3.9
3.2
6.0
5.3
3.2
0.7
12/96
28,077,910
1/13
10,883,864
10/00
2,490,920
10/10
14,703,126
Hedged Debt
HFRI Relative Value Index
Beach Point Total Return
ML High Yield Bond Index
HFRI Event Driven Index
Canyon
ML High Yield Bond Index
HFRI Event Driven Index
GoldenTree
ML High Yield Bond Index
HFRI Event Driven Index
Strategic Value Partners
ML High Yield Bond Index
HFRI ED: Distressed/Restructuring Index
-3.1
-2.5
-2.9
-4.9
-5.5
-3.8
-4.9
-5.5
-1.9
-4.9
-5.5
-4.8
-4.9
-4.7
0.8
0.0
0.6
-2.5
-3.2
-1.6
-2.5
-3.2
3.4
-2.5
-3.2
0.1
-2.5
-4.2
0.2
-0.9
-2.8
-3.6
-4.6
-1.0
-3.6
-4.6
4.2
-3.6
-4.6
-3.6
-3.6
-7.9
8.1
4.5
5.0
3.5
4.4
7.0
3.5
4.4
11.3
3.5
4.4
-
7.6
4.9
6.8
5.9
4.0
9.6
5.9
4.0
-
10.7
6.4
9.9
9.9
5.1
12.4
9.9
5.1
-
-
8.0
5.5
5.3
3.8
4.7
7.6
7.3
4.0
9.1
7.3
4.0
5.3
2.0
1.8
6/06
77,253,752
8/12
11,731,273
6/06
25,561,950
6/06
29,094,283
2/13
10,866,246
© 2015 Fund Evaluation Group, LLC
Attachment L
Confidential - For Client Use Only
Overall Page 195 of 204
Attachment Page 9 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Foundation
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
CYTD
1Yr
3Yr
5Yr
7Yr
10Yr
Private Debt
Thomson One Distressed Index
Commonfund Distressed Debt II
Commonfund Distressed Debt III
Goldman Sachs Distressed Opportunities
0.0%
0.0
0.0
0.0
0.0
-0.4%
3.0
-7.3
1.7
-0.8
-0.5%
3.3
-7.4
1.0
-0.5
10.8%
10.3
4.0
8.6
12.6
9.3%
10.0
3.2
7.4
11.2
6.6%
10.8
3.0
5.0
7.1
Total Real Assets
-9.8
-10.5
-19.1
-0.4
2.6
Public Real Assets
CPI + 5%
Eagle Global MLP
Alerian MLP Index
RS Global Natural Resources
S&P North America Nat'l Resources Index
-30.3
1.0
-29.5
-22.1
-32.2
-19.5
-32.3
4.0
-31.6
-30.7
-34.0
-22.9
-42.3
4.8
-39.8
-39.2
-47.8
-33.6
-4.4
6.0
0.4
-3.6
-
Private Real Assets
Thomson One Private Real Estate Index
S&P GSSI Natural Resources Index
NCREIF Timberland Index
0.0
0.0
-19.5
0.8
0.2
6.3
-22.9
3.1
-6.7
11.6
-33.6
9.3
0.0
0.0
0.0
0.0
0.0
2.9
0.4
0.9
6.6
-
4.3
3.8
-0.5
11.0
-
Private Real Estate Composite
Metropolitan Real Estate Partners IV
Penn Square Global Real Estate
Penn Square Global Real Estate II
WCP Real Estate IV
Inception
Date
Market Value
6.8%
10.5
3.9
-
7.8%
12.5
5.5
1.1
5.2
6/03
$8,485,094
6/03
5/06
6/08
576,563
2,648,026
5,260,505
-1.8
0.6
5.3
9/95
54,305,094
-
-
-
1.7
6.3
5.5
0.6
-24.9
-9.7
10/11
13,741,949
10/11
9,961,305
6/13
3,780,644
1.9
13.7
-7.7
9.8
3.6
12.8
-1.4
6.3
-1.1
2.3
-1.1
4.2
1.1
6.4
1.4
7.9
5.5
10.2
7.8
9/95
40,563,145
7.8
7.3
4.2
14.0
-
7.6
3.4
5.5
-56.7
-
-5.6
-1.5
0.1
-
-
-14.1
-13.3
-4.8
-74.5
3.0
5/06
5/06
1/08
2/10
3/15
13,817,709
2,381,582
4,524,889
2,969,338
3,941,900
© 2015 Fund Evaluation Group, LLC
Attachment L
Confidential - For Client Use Only
Overall Page 196 of 204
Attachment Page 10 of 11
Attachment L
Cash and Investments Report
December 3, 2015
Miami University Foundation
Summary of Investment Performance
Report for Periods Ending September 30, 2015
Annualized
Since
Qtr
CYTD
Private Natural Resources Composite
Commonfund Energy III
Commonfund Natural Resources V
Commonfund Natural Resources VI
Commonfund Natural Resources VII
Commonfund Natural Resources VIII
Goldman Sachs Concentrated Energy
Timbervest II
Timbervest III
0.0%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-1.2%
8.5
-6.6
-2.2
-1.8
0.5
-4.5
-0.7
0.8
Cash
U.S. 91-Day Treasury Bills
Star Ohio MUF
U.S. 91-Day Treasury Bills
Star Ohio University
U.S. 91-Day Treasury Bills
BlackRock Cash
U.S. 91-Day Treasury Bills
Chase University
U.S. 91-Day Treasury Bills
Chase MUF
U.S. 91-Day Treasury Bills
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.2
0.0
1Yr
3Yr
5Yr
7Yr
10Yr
1.2%
6.9
2.9
5.6
1.5
-4.1
0.5
-
-11.5%
-5.4
-26.5
-17.5
-18.9
-11.5
-23.7
-0.8
2.0
-0.8%
6.8
-0.6
5.1
3.2
0.5
-14.7
2.7
6.9
1.5%
12.0
4.3
7.1
6.6
0.0
-5.6
0.6
-
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.3
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.2
0.0
-
-
Inception
Date
Market Value
5.5%
14.0
7.7
6.2
-
7.8%
15.1
-9.2
6.2
-9.7
0.1
-4.1
0.3
4.8
9/95
9/95
9/03
9/05
1/07
11/08
4/08
5/07
12/10
$26,745,436
97,684
1,430,569
1,201,735
2,384,458
7,123,476
3,223,746
7,769,832
3,513,936
-
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.2
0.0
6/11
29,807,534
6/11
22,365,368
6/11
114,238
6/11
32,814
6/11
2,673,078
6/11
4,622,036
Footnotes:
* Performance returns are net of investment management fees.
* Calculated returns may differ from the manager's due to differences in security pricing and/or cash flows.
* Manager and index data represent the most current available at the time of report publication.
* Hedge fund and private capital manager market values and rates of return may be based on estimates and may be revised until completion of an annual audit by the manager.
* For managers and indices that report returns on a lag, 0.0% is utilized for the most recent time period until the actual return data are reported.
* The fiscal year ends in June.
1 MUF Custom Index is composed of: 60.0% MSCI AC World Index, 10.0% Barclays U.S. Aggregate Bond Index, 10.0% NCREIF Property Index, 10.0% Barclays Multiverse TR, 5.0%
Bloomberg Commodity Index, and 5.0% S&P North America Nat Resources Index.
© 2015 Fund Evaluation Group, LLC
Attachment L
Confidential - For Client Use Only
Overall Page 197 of 204
Attachment Page 11 of 11
Attachment M
Enrollment Report
December 3, 2015
Board of Trustees Meeting
December 3, 2015
Susan K. Schaurer
Assistant Vice President & Director of Admission
Enrollment Management & Student Success
Attachment M
Overall Page 198 of 204
Attachment Page 1 of 6
Attachment M
Enrollment Report
December 3, 2015
Fall 2015 First-Year Enrollment
Final Data
»
Total confirmations: 4,093
»
Final first-year class: 3,806
» Count as of 10/15/15
»
Final melt: 7.0% or 287 students
» Fall 2014 melt was 6.9%
MiamiOH.edu
Attachment M
Overall Page 199 of 204
Attachment Page 2 of 6
Attachment M
Enrollment Report
December 3, 2015
Key Enrollment Metrics
Fall 2015 vs. Fall 2014
»
Average ACT: 28.0 vs. 27.6
»
Domestic Diversity: 13.7% vs. 13.0%
»
Average GPA: 3.75 vs. 3.70
»
Alumni Connection: 32.0 % vs. 33.1%
»
Rigor of HS Curriculum: 13.7 vs. 13.2
»
Countries: 30 vs. 44
»
Non-Resident: 44.1% vs. 43.3%
»
States: 39 vs. 38
»
International: 7.8% vs. 6.9%
»
High Schools: 1,243 vs. 1,142
MiamiOH.edu
Attachment M
Overall Page 200 of 204
Attachment Page 3 of 6
Attachment M
Enrollment Report
December 3, 2015
Other Enrollment Goals
Fall 2015
American Culture and English (ACE) Program
»
Fall 2015 enrollment goal was 150 first-year students
»
299 confirmed students or a 37% YTD increase vs. Fall 2014
Transfers
»
Fall 2015 enrollment goal was 300 students
»
218 confirmed students or a 9% YTD decrease vs. Fall 2014
TOP (Pathways)
»
67 enrolled students on the regional campuses or a 49% YTD increase over Fall 2014
»
Spring 2016 Oxford enrollment goal is 40
MiamiOH.edu
Attachment M
Overall Page 201 of 204
Attachment Page 4 of 6
Attachment M
Enrollment Report
December 3, 2015
Key Enrollment Goals
Fall 2016
First-Year Objectives
»
3,650 first-year target
»
Manage divisional enrollment targets
»
Maintain quality
»
Increase selectivity
»
Increase non-resident enrollment
»
Increase ethnic/racial diversity
Other Enrollment Objectives
»
Maintain ACE Program enrollment
»
Maintain transfer enrollment
»
Meet Net Tuition Revenue targets
MiamiOH.edu
Attachment M
Overall Page 202 of 204
Attachment Page 5 of 6
Attachment M
Enrollment Report
December 3, 2015
Fall 2016 First-Year Applications
Data as of 11.10.2015
Attachment M
Overall Page 203 of 204
MiamiOH.edu
Attachment Page 6 of 6
Attachment N
Lean Project Update
Reporting Update
Item 4 Lean Project Update
as of 11/3/2015
Completed Projects MU‐Lean Project Status Totals
Division
Finance and Business Services
Procurement Realized*
President+Intercollegiate Athletics
Advancement
Enrollment
Information Technology Services
Provost (including regionals)
Lean Project Total ‐ MU
December 3, 2015
Active
161
Completed
631
Future
51
Total
843
1
3
11
7
11
194
1
8
24
12
4
680
0
1
0
1
0
53
2
12
35
20
15
927
Cost Avoidance Cost Reduction $11,091,693
$4,987,145
$8,352,993
$3,239,808
$2,540
$150,000
$37,000
$213,790
$329,878
$0
$421,113
$0
$2,223
$0
$20,237,440
$8,590,743
Revenue Generated
$4,201,712
$906,727
$1,015
$100,000
$37,705
$4,180
$0
$5,251,339
Total
$20,280,550
$12,499,528
$153,555
$350,790
$367,583
$425,293
$2,223
$34,079,522
*Procurement Realized through September 30, 2015. Procurement increment reported quarterly‐ July 2015 through September 2015. MU‐Lean Project Changes since 9‐1‐15 report
Division
Finance and Business Services*
Procurement Realized*
President+Intercollegiate Athletics
Advancement
Enrollment
Information Technology Services
Provost (including regionals)
Lean Project Total ‐ MU
Attachment N
Newly Completed Projects since 9‐1‐15 report
Newly Active
Newly Completed
Newly Future
New Total
‐4
31
‐3
24
1
0
1
‐1
3
0
0
0
1
0
0
32
0
0
0
1
0
‐2
1
0
2
0
3
30
New New Cost Avoidance Cost Reduction $460,613
$394,775
$232,089
$323,434
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$692,702
$718,209
Overall Page 204 of 204
New Revenue Generated
$10,200
$71,826
$0
$0
$0
$0
$0
$82,026
New Total
$865,588
$627,349
$0
$0
$0
$0
$0
$1,492,937
Attachment Page 1 of 1
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