Rutgers Investor Update

Transcription

1 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\1 Rutgers Investor Update April 215 J. Michael Gower Senior Vice President for Finance & Treasurer

2 Agenda Summary of Rutgers before and after integration Integration milestones Questions and Answers 2

3 Summary of Rutgers Before and After Integration FY 213 vs. FY 214 Net Assets FY13 vs. FY14 3,5 3, 2,5 2, 1,5 1, 5 2, , ,23 1, Invested in Capital Restricted - Nonexp. Restricted - Exp. Unrestricted Total Revenues FY13 vs. FY14 4, 3,437 3, ,73 2, , , Tuition & Aux. Grants & Contracts State Approp. Healthcare Other FTE Enrollment Fall 212 vs. Fall 214 Employees FY 213 vs. FY 214 Direct Debt FY13 vs. FY14 Gross Square Feet and Buildings FY13 vs. FY14 ( GSF) (# of buildings) 75, 5, 25, 51,762 57,531 3, 2, 1, 13,216 21,766 2,5 2, 1,5 1, 5 1,8 1, Source Rutgers University, Rutgers University Financial Statements 3

4 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\5 Recent Updates and Integration Milestones School of Nursing Merger School of Nursing (UMDNJ) and College of Nursing (RU) merged on July 1, 214 New School of Nursing was named #25 for ranking of graduate nursing programs in 215 by US News and World Report School of Law Merger The Board of Governors approved the merger of School of Law Newark and School of Law Camden on April 2, 215 (awaiting ABA approval) The merger will combine the strength of each faculty and open access to two of the five largest legal markets in the country Administrative Information Systems The Board of Governors approved the first phase of consolidated administrative systems (financial management, procurement, grants management, budget) on April 2, 215 Planned go-live for most of the modules is July 1, 216 Capital Projects $8M+ of capital projects, including $387M from the State of New Jersey, are progressing on time and on budget Enterprise Risk Management ERM project commenced January 214; expect Phase 2 completion by end of 215 4

5 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\5 High Level Status Summary Administration & Public Safety On Track Facilities On Track Enterprise Risk Management On Track Research On Track Finance On Track Academic & Educational Programs On Track Student Services On Track Human Resources On Track Clinical Programs & Affiliation Agreements Due to ongoing negotiations with hospital leadership 5

6 Growth in Net Assets Post integration, Rutgers net assets increased by approximately $415 million Historical Net Assets (1) FY 21 FY 214 3,5 3,181 3, 2,637 2,691 2, ,5 2, 1,5 2, , 5 1,13 1,126 1,22 1,23 1, Invested in Capital Restricted - Nonexpendable Restricted - Expendable Unrestricted Source Rutgers Audited Financial Statements Notes 1. Includes component units of the University 2. FY 21 FY 213 data is pre-integration 6

7 Growth in Revenues 215 revenues reflect projected revenues Post integration, Rutgers total projected revenues increased by $1.3 billion in FY 214 The integration of RBHS with Rutgers has provided a significant increase in Tuition Operating and Non-Operating Revenues (1,2) FY 21 Budgeted FY 215 4,5 4, 3,5 3, 3, , State Appropriations Healthcare Research grants and contracts 2,5 2, 1,5 1, , ,73 1, , ,112 1, (Budget) 3 Tuition and Auxiliaries Grants and Contracts State Appropriations Healthcare and Professional Services Other Source Rutgers Audited Financial Statements, Rutgers FY 215 Budget Notes 1. Includes State Paid Fringe Benefits 2. FY 21 FY 213 data is pre-integration 3. Other category includes other operating revenue, federal and state student aid appropriations, contributions, investment income, fair value adjustments, and other non-operating revenue 7

8 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\9 Budgeted Revenues of the University Actual FY 214 revenues increased by $1.1 billion as Rutgers Biomedical and Health Sciences was integrated with the University The largest contributors of increased revenue were Education and General Activities, and Healthcare related revenues FY 213 FY 214 FY 215 $ in Millions Budget Actual Budget Actual Budget Educational and General Activities (1) $1,397.8 $1,42.5 $1,794.9 $1,75.7 $1,81.8 Grant and Contract Revenues Healthcare and Professional Services (1) Auxiliary Enterprises TOTAL REVENUES $2,26.6 $2,226.9 $3,325. $3,314.4 $3,332.3 Educational and General Activities $1,397.8 $1,397.7 $1,777. $1,721.3 $1,81.8 Grant and Contract Expenses Healthcare and Professional Services Auxiliary Enterprises TOTAL EXPENSES $2,26.6 $2,19.8 $3,38.8 $3,34.9 $3,332.3 NET INCREASE/(DECREASE) Source Rutgers University budgets and financial statements Notes 1. Includes allocable portion of state appropriation; excludes fringe benefits paid by the State 2. FY 213 information is pre-integration 8

9 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\1 State Appropriations Post Integration State Appropriations (1) 5-Year History State Appropriations Fringe Benefits Paid by State FY 214 RU-NB & AES & RBHS RU - Newark RU - Camden Total* Direct Appropriation $356,545, $31,816, $17,14, $45,51, Other State Appropriations $49,799, $ $ $49,799, State Appropriations $46,233, $31,816, $17,14, $455,189, State Paid Fringe Benefits $278,3, $3,11, $14,91, $322,24, Total $684,236, $61,926, $31,231, $777,393, FY 215 RU-NB & AES & RBHS RU - Newark RU - Camden Total Direct Appropriation $356,68, $31,816, $17,56, $45,39, Other State Appropriations $49,799, $ $ $49,799, State Appropriations $45,867, $31,816, $17,56, $455,189, State Paid Fringe Benefits $286,678, $38,79, $16,784, $341,541, Total $692,545, $69,895, $34,29, $796,73, * May not foot to financials due to rounding Source Rutgers, and Rutgers Audited Financial Statements 9

10 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Capital Campaign Update as of February 28, 215 The University concluded its Our Rutgers, Our Future capital campaign in December 214, after exceeding its $1. billion goal 1% increase from the previous campaign of $5 million. During FY214, the University raised $148.4 million in gifts and pledges versus a target of $14 million. The fundraising target for FY215 is $16. million. The University has raised $127.6 million in gifts and pledges through February 28, 215 versus a target of $89. million over the same period. Fundraising Performance (Cumulative) Total New Gifts and Pledges Average gifts and pledges over the past five years is $121 million. 25 Capital Campaign Amount Raised: $1.37 billion, Surpassing $1 billion goal Purpose* Fundraising* (in millions) Detail New Gifts & Pledges Target Faculty & Research $ new endowed chairs, endowments and operating support for research institutes, and seed funding for research Students & Learning $ new endowed scholarships & fellowships; enhanced opportunities for small-discussion classes; resources for experiential learning, undergrad research, & study abroad Campaign Gifts by Constituency Alumni, 39.6% Matching Gifts, 1.2% Foundations, 24.6% Campuses & Facilities $132.7 Construct transformational buildings; enhance spaces for collaborative learning; and purchase of equipment and technology to better serve students and faculty University & Community Programs * Excludes $31.5 million in other fundraising $174.2 Support programs such as local and global community outreach to athletics, critical to competing in the Big Ten. Friends, 16.2% Source Rutgers University Campaign Progress, as of September 3, 214 Corporations, 14.8% Family Foundations, 3.6% 1

11 Summary of Cash and Investments The University s total cash and investments have grown significantly over the past five years Historical Cash and Investments FY8 FY14 3, Total Cash and Investments as of February 28, 215: $2.463 billion*, and is comprised of: 2,5 2, 1,815 1,634 1,636 2,369 2,463 The Working Capital and Liquidity Portfolio: $1.235 billion* 1,5 1, 1,323 1,367 1,369 The Long Term Investment Pool (LTIP): $833 million* Other endowments, restricted funds and plant funds: $395 million* 5 FY8 FY9 FY1 FY11 FY12 FY13 FY14 Feb-15 Notes: 1) FY14 is first post-integration measure of cash and investments; Cash and Investments includes all component units 2) Updated data is unaudited as of February 28, 215 Unrestricted Working Capital and Plant funds are managed internally and externally under the Short Term Investment Policy The Long Term Investment Pool is managed externally, under the oversight of the Joint Investment Committee Other endowments and restricted funds are managed externally in separate accounts established under the terms of trust documents Source Rutgers University * Unaudited data 11

12 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\12 Investment Performance as of February 28, 215 (Unaudited) The goal for the portfolio is to achieve 8.% growth per year over the long term The current portfolio has a long term expected return of 8.1% Over a ten year horizon, the portfolio is expected to return 7.% As of February 28, 215 the market value of the portfolio was $833,387,78 Asset Allocation Real Assets 14% Hedge Funds 25% Priv ate Equity 1% Cash 2% Fixed 12% US Equity 2% International Large Stocks 15% International Emerging Stocks 4% Market Value History $, in Millions Portfolio Return Summary % 12.% 1.% 8.% 6.% 7.3% 7.6% 9.6% 9.% 8.7% 8.6% 6.6% 5.9% 4.% 2.% 2.4% 2.3% 1.7% 1.3% 2.1% 2.4%.% Feb-15 3 Months YTD 1 Year 3 Years 5 Years 1 Years Rutgers Long-Term Pool Total Fund Rutgers Policy Index Source Rutgers University Long Term Investment Pool Monthly Report, as of February 28, 215, unaudited 12

13 Current and Historic Debt Unaudited Historic Direct Debt (1) FYE Summary Mix of Debt (1) As of March 31, 215 2,5 2, 1,951 Underlying Debt Fixed vs. Variable Traditional Variable 9.4% Including Swaps Fixed vs. Variable Sw apped Variable 9.4% 1,5 1, 1,91 1,65 1, Traditional Fixed 9.6% Traditional Fixed 9.6% Current Debt Portfolio Total Fixed Rate (1) $1,755,74, Total Variable Rate 115,435, Total Commercial Paper 65,833, Total Debt as of March 31, 215 $1,937,8, Swap Exposure Swap Exposure As of May 1, 213 Notional Fixed Floating Counterparty Maturity Rate Rate Morgan Guaranty $43.2 5/1/ % SIFMA Merill Lynch 1. 11/1/ % 3M LIB BNY /1/ % SIFMA BNY /1/ % 1M LIB Total $173.3 Notes 1. Includes General Obligations and Capital Leases related to New Brunswick Housing Authority; excludes HECIP, DSTF, notes, and loans 13

14 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\15 University Enrollment Academic Years (includes RBHS ) New Brunswick Newark Camden RBHS Total Year SAT* Undergrad Grad & Prof SAT* Undergrad Grad & Prof SAT* Undergrad Grad & Prof SAT* Undergrad Grad & Prof Total ,216 29,95 8,269 1,11 7,37 4,193 1,11 4,121 1,66 54, ,212 3,351 8,561 1,95 7,479 4,319 1,96 4,497 1,661 56, ,217 31,268 8,682 1,96 7,465 4,339 1,113 4,653 1,775 58, ,223 31,593 8,841 1,78 7,666 4,345 1,53 4,78 1,635 58, ,238 31,4 8,553 1,82 7,217 3,995 1,65 4,842 1,422 n/a 2,51 5,582 65, ,241 32,26 8,514 1,61 7,48 3,96 1,55 4,857 1,464 n/a 2,338 5,32 66,13 Regularly Admitted First Year Students (excludes EOF and special) ** Starting in academic year, reported SAT data includes University College (UC) *** Starting in academic year, Newark Nursing and New Brunswick Pharmacy moved to RBHS. New Brunswick Enrollment History (s) Newark Enrollment History (s) Camden Enrollment History (s) Total Enrollment History (s) UG Grad/Prof UG Grad/Prof UG Grad/Prof NB, N, C Totals RBHS Notes 1. Displays opening day enrollment data for ; enrollment figures from 29-1 to are final enrollment figures 14

15 Rutgers Investor Presentation ppt\1 SEP 214\2:6 PM\1 Rutgers Enrollment Demand Rutgers Demand Statistics Rutgers Primary Selectivity and Matriculation , 3, 25, 2, 15, 1, 5, Applicants Admitted Students Enrolled Students 7% 6% 5% 4% 3% % Admitted (selectivity) % Enrolled (matriculation) Applicants, Admissions and Enrollments Applicants 31,728 32,833 31,751 31,842 33,545 33,717 Admitted Students 2,196 2,713 21,5 21,459 22,368 23,5 Enrolled Students 7,59 7,324 7,476 7,77 7,888 7,856 % Admitted (selectivity) 63.7% 63.1% 66.3% 67.4% 66.7% 68.4% % Enrolled (matriculation) 35.% 35.4% 35.5% 35.9% 35.3% 34.1% 15

16 Questions? J. Michael Gower Senior Vice President for Finance & Treasurer