Board of Trustees Finance Committee - Meeting AgendaUniversity s investment portfolio and he is satisfied that the niversity U portfolio is performing well and is aggressive enough

Board of Trustees Finance Committee

Tuesday, February 13, 2018

2:45 – 4:15pm Gibbons Alumni Center – Traditions Hall

Trustees: Brian Lamb, Chair; John Ramil, Vice Chair; Michael Carrere, Les Muma, Charlie Tokarz

Foundation Board Liaison: Alan Bomstein Vice Presidents: John Long and Nick Trivunovich

Staff Liaison: Gina Lombardi

A G E N D A

I. Call to Order and Comments Chair Brian Lamb

II. Public Comments Subject to USF Procedure Chair Lamb

III. New Business – Action Items a. Approval of November 2, 2017 Meeting Notes Chair Lamb

b. Expenditure Authorization Requests Vice President/CFO Nick Trivunovich

IV. New Business – Information Items

a. DSO Mid-Year Forecasts University Treasurer Fell Stubbs/DSO CEOs & CFOs

1. USF Health Professions Conferencing Corp. Carole Post/Greg Vannette 2. University Medical Services Assoc., Inc. & Rich Sobieray/Alisha Ozmeral USF Medical Services Support Corp. 3. Sun Dome, Inc. Mark Harlan/Kevin Toso 4. USF Foundation, Inc. Joel Momberg/Rob Fischman 5. USF Alumni Association, Inc. Bill McCausland/Melissa Schaeffer 6. USF Research Foundation, Inc. Paul Sanberg/Patricia Gamble 7. USF Financing Corp. & USF Property Corp. Fell Stubbs

b. Annual DSO Investment Reports University Treasurer Fell Stubbs/DSO CFOs

1. University Medical Services Assoc., Inc. (UMSA) Rich Sobieray/Alisha Ozmeral 2. USF Research Foundation, Inc. Nick Trivunovich/Patricia Gamble

Board of Trustees Finance Committee - Meeting Agenda

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c. USF 2017 Audited Financial Statements University Controller Jennifer Condon

d. USFSP P3 Housing Project Update Nick Trivunovich

e. USFSP Student Housing Report Jacob Diaz, USFSP Dean of Students & Director of Housing and Residence Life V. Adjournment Chair Lamb

Board of Trustees Finance Committee - Meeting Agenda

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USF Board of Trustees Finance Committee

NOTES Thursday, November 2, 2017

Tampa Campus - Marshall Student Center Room #3707

I. Call to Order and Comments

The meeting of the Finance Committee was called to order by Chair Brian Lamb at 12:38pm. The following committee members and liaisons were present: Brian Lamb, Mike Carrere, Stan Levy, John Ramil, and Judy Genshaft. A quorum was established. The following Trustees were also present: James Garey, Stephanie Goforth, and Byron Shinn.

II. Public Comments Subject to USF Procedure

No requests for public comments were received. III. New Business – Action Items

a. Approval of August 17, 2017 Meeting Notes

Upon request and receiving no changes to the draft meeting notes, Chair Lamb requested a motion for approval, it was seconded and the August 17th meeting notes were unanimously approved as submitted by all committee members present.

b. Approval of October 12, 2017 Meeting Notes

Upon request and receiving no changes to the draft meeting notes, Chair Lamb requested a motion for approval, it was seconded and the October 12th meeting notes were unanimously approved as submitted by all committee members present.

IV. New Business – Information Items

a. Tampa Housing Report

John Long, Sr. Vice President/COO, reminded the Committee that in May 2016, the BOT approved the USF Tampa Student Housing Rental Request for three years (FYE 2017-2019). The purpose of the approved three-year rate structure (9.3% average – Fall 2016; 9.0% average – Fall 2017; and 8.0% average – Fall 2018) was primarily to address deferred maintenance and to maintain the debt service coverage ratio and health of the housing system. And, as required by the approved resolution, staff will return annually to report on the performance of the housing system. Ana Hernandez, Assistant Vice President, Housing & Residential Education, gave an update on USF Tampa Student Housing. Based on performance, the recommendation is to implement a 6.5% average rate increase for FY 2018/19 (previously approved at 8.0% average). This is

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year 3 of a 3-year increase. Ms. Hernandez reported that she briefed Trustee Moneer Kheireddine and he is in agreement with and in support of the recommendation. Tampa Housing & Residential Education opened in Fall 2017 with 98.6% occupancy and demand for student housing continues. Reinvestment in housing facilities continues (FYE 2017 - $14.4M projects completed; FYE 2018 - $12.3M projects completed, planned and underway; and FYE 2019 - $6.6M projects planned). We will meet the targeted debt service coverage ratio of 1.35x in Year 2 of three year approved plan. Ms. Hernandez listed some of the FYE 2017 facility reinvestment projects, which included both non-capital and capital projects. Ms. Hernandez also presented before and after photos of some of the completed projects (interior and exterior of Magnolia Halls and renovated parcel facility). Chair Lamb stated that the pictures are compelling and it is good to see the money being reinvested into facilities. Chair Lamb asked how the projects are prioritized. Ms. Hernandez responded that it is based on the VFA deferred maintenance report (comprehensive facilities audit) and residents surveys. Trustee Levy asked if there is a spreadsheet that tracks what needs to be done (repairs, renovations, etc.) and when, in order to forecast needs. Ms. Hernandez responded that they are currently using “SchoolDude” (operations management software) for this process. She will bring this information back to the committee. Trustee Ramil explained that we need to have a good line of sight on upcoming needs over the next 5-10 years so we know where the lumps are (large projects that need to be funded). Ms. Hernandez presented financial projections based upon proposed rates as well as debt service coverage ratios with the proposed rates. Chair Lamb asked what deferred maintenance will be after FYE 2019. Ms. Hernandez responded that we will have completed 75% of the projects in the 2012 VFA report. Chair Lamb would like for this to come back to the Finance Committee (updated deferred maintenance schedule with quantified amounts /life-cycle facility maintenance management program). Trustee Shinn wants to be sure we do not hurt ourselves by asking for less of an increase (6.5% vs 8%); wants to be sure we do not backslide and end up with a large deferred maintenance backlog again. Mr. Long explained that we will continue to ask for modest increases in the next years (1-4%), so we can successfully manage the deferred maintenance program. After additional discussion, the Finance Committee agreed with the report and a 6.5% average increase, which represents a reduction from the original rate increase. The 6.5% rate will be implemented in Fall 2018 as presented. Based on the May 3, 2016 motion originally approving the increase, further action was not required by the Board.

b. Morsani College of Medicine and Heart Institute Project Update

Mr. Long provided an update on the Morsani College of Medicine and Heart Institute project. Deep foundations are complete. Pile caps, grade beams, and underground utilities are ongoing. Cranes will go up in early November. The project is on schedule, on time, and on budget. GMP #2 (building core and external skin) will be implemented by mid-November. Chair Lamb reminded the Committee that the two additional shell floors do not affect the schedule and do not require any additional/new state dollars. The programs that will occupy the space will build it out.

Chair Lamb asked for an update on Skanska’s MWBE engagement. Chris Duffy, Assistant Vice President for Facilities Management, reported that Skanska has two MWBE businesses,


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one of which was terminated for legal reasons. Skanska is working with us to continue to involve MWBE sub-contractors.

Trustee Levy asked about usable square footage. Mr. Duffy reported the square footage of the building as follows:

395K gross square feet 345.8K net square feet 222K usable square feet

This is consistent with the program developed and approved. The two shell floors are 72.6K gross square feet (included in the numbers above). Discussion continued on gross versus assignable square feet. Chair Lamb asked that Mr. Long and Mr. Duffy provide additional information on this to Trustees Levy and Shinn prior to the next Finance Committee meeting, and that Trustee Levy report back to the Finance Committee.

c. Annual Foundation Investment Report

Brian Keenan, Chair of the USF Foundation Investment Committee and USF Foundation Treasurer, and Mark Brubaker, Managing Director, Wilshire Associates, presented the Annual Foundation Investment Report. This report includes the Endowment Portfolio (current reporting practice) and the Operating Portfolio (new report).

The USF Foundation recently closed fiscal year 2017 with approximately $557M in total assets under management, of which $442M are restricted endowment assets. The Endowment Pool posted a return of 16.4% for the fiscal year, which exceeded its policy benchmark by 1.5%. This portfolio performance was due to strong performance from domestic and international equities. Our endowment return is the top performing in the state.

NACUBO is the primary benchmarking tool. USF endowment continues to outperform peers in all time periods (1, 3, 5, and 10 year) primarily due to its strategic asset allocation; relative overweight to long-only equites and high yield bonds; and no allocation to hedge funds. We have a higher equity allocation that our peers, but we are working to diversify. USF endowment is the third largest among selected institutions established since 1950. This is due to strong returns and good fundraising.

FY 2017 returns exceeded policy benchmarks. Contributors include strong performance in US and Non-US equity as well as high yield bonds; the endowment’s overweight equity position relative to peers; and positive results from private capital, especially private equity and natural resources. Detractors include core fixed income that underperformed in an equity bull market; and public real assets that lagged as inflation remained muted.

Endowment distributions provide support for endowed University programs, scholarships, etc. Distributions to the University exceeded $17M in FY 2017; approximately $157M in support over last ten years. The Foundation’s investment objective is to preserve the intergenerational equity of endowed gifts while providing a consistent source of funding to University programs, faculty, and students.

Asset allocation is set for long-term growth through multiple market cycles. Wilshire forecasts indicate that the USF endowment should be able to maintain long-term intergenerational equity while maintaining its current 6% spending rate (4% dividend, 2% administrative fee). Recent


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Investment Committee initiatives include increased allocations to private credit and private real assets, and manager changes in small cap growth and public real assets. The Investment Committee looks at managers quarterly and asset allocation. The focus is on getting the long-term decisions right. The Operating Pool is about $100M with some overlap as a portion is invested in the endowment (about $14M). The investment objective for the Operating Pool is long-term preservation of capital. Foundation management conducts an actuarial review of the operating funds’ cash flow activity in order to forecast the pool’s liquidity needs; this becomes the basis of the asset allocation strategy. Asset allocation is set based on risk/return forecasts for each asset class, under guidance from Wilshire. The Operating Pool posted a return of 3.2% for the fiscal year, which was over its policy benchmark by 1.1%. The long-term goal is 4%.

V. Adjournment

Trustee Ramil stated that he spoke to the Chair of the USF Investment Committee regarding the University’s investment portfolio and he is satisfied that the University portfolio is performing well and is aggressive enough.

Having no further business, Chair Lamb adjourned the Finance Committee meeting at 1:45pm.


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Agenda Item: IIIb

USF Board of Trustees Finance Committee February 13, 2018

Issue: Expenditure Authorization Requests ________________________________________________________________ Proposed action:

1) Approval of the following expenditures over $2,000,000:

a) Firewall and VPN Services $2,450,119 b) The Pamela Muma Women’s Health Center $2,000,000 c) USF Honors College $2,000,000 d) USF Football Center $3,500,000

________________________________________________________________ Executive Summary: The USF System Policy for Delegations of General Authority and Signatory Authority requires the approval of the Finance Committee Chair for the procurement of goods and services above $1 million and the approval of the Finance Committee for the procurement of goods and services above $2 million. Approval is being requested for the items listed above. Financial Impact: Authorization is being requested for $9,950,119 in transactions. _______________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Date: February 13, 2018 Supporting Documentation Online (please circle): Yes No USF System or Institution specific: USF System Prepared by: Nick Trivunovich, Vice President/CFO (813) 974-3297


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USF System Approval of Expenditures Exceeding One Million Dollars

Project/Initiative Name: USF Firewall/VPN Total Project/Initiative Cost: $ 2,450,118.68 Description: (description and rationale for the project/initiative) This expenditure is to the fund the one-time purchase of equipment, related infrastructure expenses, and 5 years of maintenance for Palo Alto firewalls and VPN to protect USF’s Primary Datacenter (Tampa), WAN, and Secondary Datacenter (Winter Haven). Total cost is $2,450,118.68. Paying for 5 years of maintenance upfront vs annually represents a savings of 26%, approximately $828,118.90. Objective: (strategic priority or needs the project/initiative addresses; include strategic goal this project/initiative supports) The firewalls are a key part of USF’s cyber security posture, representing boarder security to our network. The current devices performing that function are reaching their end of life and their processing capacity. The solution being requested places firewalls to protect our primary data center, secondary data center and the entirety of our Wide Area Network (WAN). The technology creates a consistent standard for USF IT to administer, instead of the multiple technologies currently being utilized. The firewalls being proposed also afford more features / tools to our security team, aligning to USF IT’s advanced security posture. The solution is also scaleable to handle network demand from researchers,up to and including a capacity of 100 Gigabit, should USF invest in 100 Gigabit capability at a future point in time. This expenditure supports Strategic Goal #4: Sound financial management to establish a strong and sustainable economic base in support of USF’s continued academic advancement Funding Source(s): E & G Carryforwad


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Are the funds supporting the project budgeted or non-budgeted? Budgeted. This was a planned expense for 2017/2018. Additional funding needed for the 5 years of maintenance will be earmarked from current year Carryforward funds. Prior Approval Process: Went through the Chief Operating Officer budget review process in creating the 2017/2018 budget. List Related Projects/Initiatives: (if any) N/A USF System or Institution specific: USF System Prepared by: Patrick Gall Date Requested: 02/5/2018 USF System Policy 0-100 requires approval of this expenditure by the USF Board of Trustees Finance Committee Chair. Approval must be granted in writing and may be granted by electronic communication.


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Project/Initiative Name: The Pamela Muma Women’s Health Center Total Project/Initiative Cost: $2,000,000 Description: (description and rationale for the project/initiative) The Pamela Muma Women’s Health Center will provide a comprehensive primary care concierge center in South Tampa, defined by personalization and convenience and dedicated to women in our community. The Women’s Health Center will be a 6,000 sf facility located on the 5th floor of the USF Health South Tampa Center. Objective: (strategic priority or needs the project/initiative addresses; include strategic goal this project/initiative supports) Strategic Goal 3: Highly effective, major economic engine, creating new partnerships to build strong and sustainable future for Florida in the global economy. Funding Source(s): Les and Pamela Muma have donated $2 million towards the development of the Women’s Health Center. Project design, construction and furniture, fixtures and equipment funding will be initially financed through a USF Foundation loan to be repaid by either the execution of the pledge or from other available Practice Plan funds. Operations will be supported through memberships, additional philanthropy and a partnership opportunity with Tampa General Hospital. Are the funds supporting the project budgeted or non-budgeted? Non-Budgeted. Project development funds are provided by a private gift. Operations will be supported through memberships, additional philanthropy and a partnership opportunity with Tampa General Hospital. Prior Approval Process: N/A


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List Related Projects/Initiatives: (if any) N/A USF System or Institution specific: University of South Florida Prepared by: Fell L. Stubbs Date Requested: February 1, 2018 USF System Policy 0-100 requires approval of this expenditure by the USF Board of Trustees Finance Committee Chair. Approval must be granted in writing and may be granted by electronic communication.


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Project/Initiative Name: USF Honors College Total Project/Initiative Cost: $2,000,000 Description: (description and rationale for the project/initiative) Initial design costs of 58,000 GSF dedicated building for the Honors College program including auditorium, classrooms, workshops, seminar rooms and offices. Objective: (strategic priority or needs the project/initiative addresses; include strategic goal this project/initiative supports) Continued improvement and success of the USF Honors College in support of USF Strategic Goal #1: Well-educated and highly-skilled global citizens through our continuing commitment to student success. Funding Source(s): Private Funds Are the funds supporting the project budgeted or non-budgeted? Non-Budgeted Prior Approval Process: May 18, 2017 Capital Improvement Plan; USF Campus Master Plan–multiple possible locations identified List Related Projects/Initiatives: (if any) N/A USF System or Institution specific: USF Tampa Prepared by: Vice President Calvin Williams Date Requested: February 2018 USF System Policy 0-100 requires approval of this expenditure by the USF Board of Trustees Finance Committee Chair. Approval must be granted in writing and may be granted by electronic communication.


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Project/Initiative Name: USF Football Center (Athletics Indoor Practice facility and Football Operations Building) Total Project/Initiative Cost: $3,500,000 Description: (description and rationale for the project/initiative) Design of the first phase of a 99,000 GSF Indoor Practice Facility for USF Athletics and 67,000 GSF Football Operations Building. Objective: (strategic priority or needs the project/initiative addresses; include strategic goal this project/initiative supports) Continued improvement and success of the USF Intercollegiate Athletics program in support of USF Strategic Goal #3: A highly effective, major economic engine, creating new partnerships to build astrong and sustainable future for Florida in the global economy. Funding Source(s): Private Funds Are the funds supporting the project budgeted or non-budgeted? Non-Budgeted Prior Approval Process: Program and Strategy is an action item to be approved at the 2/13/18 University of South Florida Board of Trustees Strategic Initatives Committee List Related Projects/Initiatives: (if any) Campus Master Plan Update will be required (in process). USF System or Institution specific: USF System Prepared by: Vice President Calvin Williams Date Requested: February 2018 USF System Policy 0-100 requires approval of this expenditure by the USF Board of Trustees Finance Committee Chair. Approval must be granted in writing and may be granted by electronic communication.


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Agenda Item: IVa


Issue: DSO Mid-Year Forecasts for FY 2018 ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: The Direct Support Organizations of the University (DSOs) have prepared their Mid-Year Forecasts for FY 2018. These reports include a comparison of the Forecast to the FY 2018 Financial Plans approved by the BOT Finance & Audit Workgroup at its May 18, 2017 Meeting, as well as FY 2017 and FY 2016 Actual results. The DSOs are:

1. USF Health Professions Conferencing Corporation 2. University Medical Services Association, Inc. &

USF Medical Services Support Corporation 3. Sun Dome, Inc. 4. USF Foundation, Inc. 5. USF Alumni Association, Inc. 6. USF Research Foundation, Inc. 7. USF Financing Corporation & USF Property Corporation

Financial Impact: N/A ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Dates: February 13, 2018 Supporting Documentation Online (please circle): Yes No DSO Mid-Year Forecasts FY 2018 USF System or Institution specific: USF System Prepared by: Fell L. Stubbs, University Treasurer, (813) 974-3298

Board of Trustees Finance Committee - New Business - Information Items

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DIRECT SUPPORT ORGANIZATIONS

MID-YEAR FORECASTS

FISCAL YEAR 2018

February 13, 2018


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DSO Mid-Year Forecasts for FY 2018

INDEX

USF Health Professions Conferencing Corporation .................................................. 2-4

University Medical Services Association, Inc. & USF Medical Services Support Corporation ................................................... 5-7

Sun Dome, Inc. ........................................................................................................... 8-10

USF Foundation, Inc. ................................................................................................. 11-13

USF Alumni Association, Inc. ................................................................................... 14-16

USF Research Foundation, Inc. .................................................................................. 17-19

USF Financing Corporation and USF Property Corporation ..................................... 20-22

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List Significant Forecasted Variances (Favorable and Unfavorable) - Both Income Statement and Cash Flows

Overall, the forecasted revenue for Continuing Professional Development (CPD) will increase a net $700K from financial plan as follows:

· Revenue for CPD is forecasted to exceed FY18 targets by $1,500K due to an increase in the number of medical education companies (MEC) that use USF Health’s accreditations for their programming. Accordingly, 'Direct Program Expense' is also projected to exceed FY18 targets (by $1,400K) because most of this revenue passes through HPCC to the MEC to cover the cost of content development and delivery.

· Revenue and ‘Direct Program Expense’ for CPD will reflect a decrease of $400K and $380K, respectively, due to the elimination of USF Health & Education International Foundation (HEIF) accounting transactions. HPCC receives and disburses funds on behalf of HEIF, however, HPCC is merely acting as an agent for HEIF. HEIF is ultimately responsible for the delivery of its services, therefore, in FY18 HPCC began reporting the HEIF revenues and expenses as net rather than gross. Likewise, HEIF accounting records now reflect all of its financial transactions regardless of whether HPCC or HEIF received or disbursed the funds.

· Revenue for CPD will reflect a decrease of $400K, while conversely 'Other HPCC Divisions' will increase by $400K, due to re-categorizing the financial management services HPCC provides to USF Health international programming on the income statement.

Revenue and ‘Direct Program Expense’ for 'CAMLS - Industry, Societies, Healthcare' is forecasted to exceed FY18 targets by $700K and $300K, respectively. The increase is attributed to increased activity, particularly training programs for international physicians.

Revenue and 'Direct Program Expense' for 'CAMLS - Industry, Societies, Healthcare' is forecasted to increase $200K and $200K, respectively, due to a transition from a 'pass through' to a 'direct billing' approach by CAMLS' catering vendor. The transition was completed December 31.

Revenue for 'CAMLS - USF Health Programming' includes a one million dollar investment from USF Health for the development and delivery of academic and professional simulation education for students and practitioners.

Cash flow is forecasted to exceed FY18 targets due to a continuing trend of operating profit exceeding operating expenses. As such, and per plan, HPCC will implement several initiatives in the second half of FY18, the costs of which are reflected in 'Capital Expenditures,' including transitioning the Accounting Department from private offsite leased space to CAMLS, and repairing and modernizing the water heating system.

Describe Management's Actions to Close Significant Unfavorable Gaps Before FYE

While there are no unfavorable gaps to report at the mid-term, and no substantial gaps anticipated before FYE, there are several items to note for reference in planning FY19:

· Net Operating Profit' is forecasted to exceed Plan by 280%, of which, $400K is related to a physician training program conducted in concert with the Mexican government. It is a cyclical program that will not be repeated in FY19 and there is no foreseeable programming that would replace this revenue source

· HPCC will expect to increase the maintenance and repair budget in FY19 to ensure sufficient upkeep of the CAMLS facility in concert with its unique space and equipment needs, some of which are reaching the end of their useful lives. HPCC will work to implement a long-range capital and expense plan to ensure a state-of-good repair.

· HPCC leadership continues to integrate CAMLS into the medical education infrastructure of USF Health and review the ROI on mission critical areas to determine the scale and continued offerings of certain programs. There are areas with low returns that may be sunset or offered less frequently to maximize the staff and resources at CAMLS.

USF Health Professions Conferencing Corporation (HPCC)FY 2018 Mid-Year Forecast

MID-YEAR FORECAST

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(In thousands) FY 2018 FY 2018 FY 2017 FY 2017 FY 2017 FY 2016MID-YEAR FINANCIAL ACTUAL ONE-TIME ACTUAL W/O ACTUALFORECAST PLAN $ % RESULTS ACCOUNTING

CHANGESONE-TIME

ITEMSRESULTS

REVENUES Continuing Professional Development $3,583 $2,883 $700 24 % $3,633 $1,344 $2,289 $3,988

CAMLS - USF Health Programming 4,704 4,704 0 0 % 5,800 5,800 6,430

CAMLS - Industry, Societies, Healthcare 5,196 4,296 900 21 % 4,619 4,619 7,055

Other HPCC Divisions 400 0 400 % 810 810 1,420

In Kind Donations 0 0 0 % 41 41 7

Rents, Parking, Rebates, Interest 450 430 20 5 % 362 362 504

Gain on Sale of Fixed Assets 12 0 12 % 434 434 0 0

Total Revenues $14,345 $12,313 $2,032 16 % $15,699 $1,778 $13,921 $19,405

EXPENSESWages and Benefits $3,277 $3,277 $0 0 % $3,296 $3,296 $4,499

Utilities, Leases, Maint, Supplies, Marketing 2,335 2,275 60 3 % 3,274 3,274 3,730

Direct Program Expense 5,734 4,214 1,520 36 % 4,955 366 4,589 7,127

Interest 715 710 5 1 % 726 726 757

In Kind Expense 0 0 0 % 41 41 7Depr - Purchased & Donated Assets 1,677 1,677 0 0 % 1,972 1,972 2,252Total Expenses $13,737 $12,152 $1,585 13 % $14,264 $366 $13,898 $18,372

OPERATING PROFIT BEFORE NON-CASH CHANGES $607 $160 $447 280 % $1,434 $1,412 $23 $1,033

Unrealized Investment Gains (Losses) 0 0 0 % 0 0 0 0Change in Fair Value of Swaps 0 0 0 % 0 0 0 0Total Non-Cash Changes $0 $0 $0 % $0 $0 $0 $0

NET OPERATING PROFIT $607 $160 $447 280 % $1,434 $1,412 $23 $1,033

Variance

USF Health Professions Conferencing CorporationFY 2018 Mid-Year Forecast

INCOME STATEMENT

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(In thousands) FY 2018 FY 2018 FY 2017 FY 2017 FY 2017 FY 2016MID-YEAR FINANCIAL ACTUAL ONE TIME ACTUAL ACTUALFORECAST PLAN

$ %RESULTS ACCOUNTING

CHANGESW/OUT ONE TIME ITEMS

RESULTS

OPERATING ACTIVITIES

Net Operating Profit $607 $160 $447 278 % $1,434 $1,412 $22 $1,033

Adjustments for Non-Cash Activities:

Depreciation 1,677 1,677 0 0 % 1,972 0 1,972 2,252

(Gain)/Loss on sale of fixed assets (12) 0 (12) % (434) (434) 0 0

Adjustments for Changes in

Operating Assets and Liabilities 0 0 0 % (856) (978) 122 (2,007)

Total Cash From Operating Activities $2,272 $1,837 $435 24 % $2,116 $0 $2,116 $1,278

INVESTING ACTIVITIES

Net (Purchases) Sales of Investments $41 $0 $41 % $385 $385 $0 $8

Capital Expenditures (250) (120) (130) (108)% (441) 0 (441) (74)

Total Cash From Investing Activities $(209) $(120) $(89) (74)% $(56) $385 $(441) $(66)

FINANCING ACTIVITIES

Principal Payments $(1,153) $(1,138) $(15) (1)% $(1,524) $0 $(1,524) $(2,111)

Total Cash From Financing Activities $(1,153) $(1,138) $(15) (1)% $(1,524) $0 $(1,524) $(2,111)

CHANGE IN CASH 910 579 331 57 % 536 385 151 (899)

Cash, Beginning of Year 716 473 243 51 % 180 0 0 1,079

Cash, End of Year $1,626 $1,052 $574 55 % $716 $180

Total Cash & Investments $1,626 $1,052 $574 55 % $716 $180

Days Cash on Hand -all cash expenses & debt srv 45 33 12 36 % 19 4

Days Cash on Hand -all cash expenses 49 37 13 34 % 21 4

Variance

USF Health Professions Conferencing CorporationFY 2018 Mid-Year Forecast

STATEMENT OF CASH FLOWS

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We have presented the 2018 Mid-Year Forecast without the expected increase in physician Upper Payment Limit (UPL) supplemental payments. These are supplemental payments to ensure Medicaid recipient access to specialty care at the state's medical schools. We expect to receive an additional $17M by the end of FY18.

Net patient service revenue is ahead of Plan by 3% due to increased volume and recruitment. As a result, faculty support has increased by 4% as our new providers ramp up.

Capital expenditures will exceed the original plan by $1.1M to fund equipment necessary for the Ambulatory Surgery Center and clinical initiatives. All expenditure requests are reviewed, prioritized, and approved by the USF Health Care finance committee. Improvements in the revenue cycle and working capital management will mitigate the cash flow impact of these expenditures.

Other expenses have decreased from the prior year due to reduced consulting costs and improved management of drug inventory. Management will continue to look for additional opportunities to decrease these expenses.

Days cash on hand was 43 at the end of FY16 and decreased to 29.5 in FY17 as the practice plan invested in its operations. As those investments materialize through operational improvements, USF Health Care forecasts DCOH to increase to 35.7 at the end of FY18 as we move into a cash savings phase.


USF Healthcare leadership will meet with each clinical department to review their current year performance compared toPlan and their projections for the remainder of the fiscal year. Departments that do not meet their margin targets will be required to revisit their physicians' clinical FTEs, adjust compensation, or reduce their bonus pools.

USF Health Care hired a new Chief Access Officer in FY18 who is currently working with physicians to redesign their templates. As a result, we expect to see improved availability of appointments and thus increased visits in the practice.

University Medical Service Association, Inc. and Medical Services Support Corporation

FY 2018 Mid-Year Forecast

MID-YEAR FORECAST

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(In thousands) FY 2018 FY 2018 FY 2017 FY 2016MID-YEAR FINANCIAL ACTUAL ACTUALFORECAST PLAN $ % RESULTS RESULTS

REVENUES Net Patient Service $178,335 $173,685 $4,650 3 % $166,362 $151,505

Grants, Contracts & Awards 70,113 70,332 (219) (0)% 68,336 62,551

UPL 6,183 6,474 (291) (4)% 7,329 6,798

Other Revenues 45,034 44,364 670 2 % 49,493 42,891

Total Revenues $299,665 $294,855 $4,810 2 % $291,520 $263,745

EXPENSESFaculty Support $141,662 $136,680 $4,982 4 % $135,294 $125,755

Housestaff Support 10,804 11,185 (381) (3)% 11,723 11,406

Other Staff Support 82,738 82,427 311 0 % 81,771 78,268

Depreciation/Amortization 5,311 5,497 (186) (3)% 5,397 5,171

Other Expenses 57,896 57,812 84 0 % 61,237 55,498

Total Expenses $298,411 $293,601 $4,810 2 % $295,422 $276,098

OPERATING PROFIT BEFORE NON-CASH CHANGES $1,254 $1,254 $0 0 % $(3,902) $(12,353)

Unrealized Investment Gains (Losses) 912 0 912 % 1,428 144

Change in Fair Value of Swaps 0 0 0 % 0 0

Non-Cash Impact of Epic Conversion (1,254) (1,254) 0 0 % (931) (2,168)

Total Non-Cash Changes $(342) $(1,254) $912 73 % $497 $(2,024)

NET OPERATING PROFIT $912 $0 $912 % $(3,405) $(14,377)

Operating Margin % 0.30% 0.00% 18.96% -1.17% -5.45%



INCOME STATEMENT

Variance

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Net Operating Profit $912 $0 $912 % $(3,405) $(14,377)

Changes in operating assets and liabilities 3,666 (7,071) (4,806)


Depreciation / Amortization 5,290 5,497 (207) (4)% 5,369 5,171

Non Cash Impact of Epic 1,254 1,254 0 0 % 931 2,168

Unrealized Gains (912) 0 (912) % (1,428) (144)

Total Cash From Operating Activities $10,210 $6,751 $3,459 51 % $(5,605) $(11,988)


Capital Expenditures $(2,835) $(1,697) $(1,138) (67)% $(1,873) $(3,652)

Purchases/Sales of Investments 0 0 0 % 13,382 13,580

Total Cash From Investing Activities $(2,835) $(1,697) $(1,138) (67)% $11,510 $9,928


Proceeds of Long-Term Debt $0 $0 $0 % $0 $0

Principal Paid on Debt (2,166) (2,201) 35 2 % (2,368) (2,005)

Total Cash From Financing Activities $(2,166) $(2,201) $35 2 % $(2,368) $(2,005)

CHANGE IN CASH 5,209 2,853 2,356 83 % 3,537 (4,065)

Cash, Beginning of Year 12,460 13,015 (555) (4)% 8,922 12,987

Cash, End of Year $17,668 $15,868 $1,800 11 % $12,460 $8,922

Operating Cash $17,668 $15,868 $1,800 11 % $12,460 $8,922

Invested Cash $10,988 $13,087 $10,988 $22,989

Total Cash on Hand $28,656 $28,955 $23,448 $31,912

Days Cash on Hand 35.7 36.7 (1) (3)% 29.5 43.0



Variance


[Page 7 of 22]


22


Tampa Bay Entertainment Properties (TBEP) operation of the Sun Dome Arena is projected to exceed prior year actual operating profit, by 4.2% or $14K. With event-related income and profitability projected to remain relatively consistent with the prior year while overall operating expenses and incentive fees are projected to decrease.

The overall decrease in event revenue is primarily attributable to the net effect of 10 fewer events which did not come to fruition.

A projected savings of $150K is currently anticipated with respect to operating expenses due to a concerted effort and action plan formulated to manage staffing at the optimal levels based upon event type and pay rates, primarily as it relates to overtime, utility costs and building supplies; in addition, potential savings are identified with respect to general and administrative costs such as, printing, supplies and professional fees (contracted services).


Potential revenue opportunities have been identified as it relates to leveraging Tampa Bay Sports and Entertainment's customer database, cross promotion and e-commerce network to increase overall revenue (and attendance) for USF Sporting events, and targeting groups for the scholar/ premium areas. Projected net income of $10K has been factored into the forecast as additional income related to scholar seats. In addition, various campaigns have been initiated recently, such as student ticket pricing and $5 ticket offers for basketball games.

Targeted expense savings of $25K and $50K have been factored into the forecast, related to payroll and general and administrative costs, respectively. As noted previously, action plans have been adopted to manage staffing by event type and attendance at the optimal level and pay rate, with a focus on eliminating or drastically reducing overtime hours, utilizing the knowledge obtained to date on demographics, average attendance and the required staffing levels by event type. Potential cost reductions to achieve a $50K savings has been identified in printing, contracted services, promotional, utilities and supplies based upon the knowledge obtained of operational requirements and the practice of billing back established utility and production costs to shows when relevant.

With improved knowledge of the operations and current market perception, website improvements and growth of the social media following, combined with the successful integration of a highly skilled team over the course of the first half of the fiscal year, TBEP is confident that the overall operating profit will continue to climb; as is currently projected to be accomplished in year one of management of the Sun Dome Arena operations, with an anticipated increase of ~13.5%.

Sun Dome ArenaFY 2018 Mid-Year Forecast

MID-YEAR FORECAST

[Page 8 of 22]


23


REVENUES Direct Event Income $959 $964 $(5) (0)% $830 $905

Ancillary Revenue 811 1,513 (702) (46)% 952 1,590

Miscellaneous 48 300 (252) (84)% 172 317

Total Revenues $1,818 $2,777 $(959) (35)% $1,954 $2,812

EXPENSESSalary & Benefits $750 $908 $(158) (17)% $824 $843

General & Administrative 343 482 (139) (29)% 305 595

Marketing & Sales 22 23 (1) (6)% 8 30

Equipment & Supplies 101 307 (206) (67)% 228 412

Utilities 51 50 1 2 % 72 50

Insurance 111 110 1 1 % 70 70

Depreciation/Amortization 42 139 (97) (70)% 43 139

Transaction Expenses 52 50 2 5 % 72 90

Total Expenses $1,472 $2,069 $(597) (29)% $1,622 $2,229OPERATING PROFIT BEFORE INCENTIVE FEES $346 $708 $(362) (51)% $332 $583

Incentive Fees $0 $0 $0 % $0 $0

Net Event Profit Split 0 0 0 % 0 0

Total Incentive Fees $0 $0 $0 % $0 $0OPERATING PROFIT AFTER INCENTIVE FEES $346 $708 $(362) (51)% $332 $583

Unrealized Investment Gains (Losses) 0 0 0 % 0 0

Change in Fair Value of Swaps 0 0 0 % 0 0

Total Non-Cash Changes $0 $0 $0 % $0 $0

NET OPERATING PROFIT $346 $708 $(362) (51)% $332 $583


INCOME STATEMENT

Variance

[Page 9 of 22]


24



Net Operating Profit $346 $708 $(362) (51)% $332 $583


Increase (Decrease) in Depr/Amort 0 139 (139) (100)% 43 139

(Increase) Decrease in Accts Receivable 215 0 215 % 0 0

(Increase) Decrease in Prepaids 2 0 2 % 0 0

Increase (Decrease) in Accounts Payable (173) 0 (173) % 0 0

Increase (Decrease) in Accrued Liabilities (82) 0 (82) % 24 268

Increase (Decrease) in Deferred Revenue 34 0 34 % 0 0

Total Cash From Operating Activities $342 $847 $(505) (60)% $399 $990


$0 $0 $0 % $0 $0

Total Cash From Investing Activities $0 $0 $0 % $0 $0


Principal Payments $0 ($65) $65 100 % ($73) ($71)

Event Revenue Transfers to USF, net (415) (415) 0 0 % (505) (524)

Total Cash From Financing Activities $(415) $(480) $65 14 % $(578) $(595)

CHANGE IN CASH (73) 367 (440) (120)% (179) 395

Cash, Beginning of Year 1,141 1,480 (339) (23)% 1,320 925

Cash, End of Year $1,068 $1,847 $(779) (42)% $1,141 $1,320

Total Cash & Investments $1,068 $1,847 $(779) (42)% $1,141 $1,320

Days Cash on Hand 273 349 (77) (22)% 264 231


Variance


[Page 10 of 22]


25


Forecasted results do not vary significantly from the financial plan.


Reliance on Foundation sources by the USF System have led to fluctuations in the utilization of Foundation funds. Foundation sources represent a small percentage of the System's overall budget, however, this source is critical for many University programs while providing a funding catalyst for others to achieve the University's goals and aspirations.

USF Foundation, Inc.FY 2018 Mid-Year Forecast

MID-YEAR FORECAST

[Page 11 of 22]


26


REVENUES Gifts & Donations $50,550 $48,500 $2,050 4 % $38,867 $38,541

Investment Income (Loss) 5,900 5,900 0 0 % 4,465 3,927

Campaign Support 3,058 3,683 (625) (17)% 3,183 3,183

University Support 9,756 9,756 0 0 % 10,122 9,924

Other Revenues 2,400 2,400 0 0 % 2,743 395

Total Revenues $71,664 $70,239 $1,425 2 % $59,380 $55,970

EXPENSESProgram Services

Salaries & Benefits $24,421 $23,942 $479 2 % $20,786 $23,834

Scholarship & Fellowships 7,637 7,487 150 2 % 8,330 $8,009

Service & independent contractors 5,068 4,862 206 4 % 4,284 $4,227

Supplies 1,366 1,939 (573) (30)% 1,341 $1,948

Other Transfers & Expenses 7,022 6,526 496 8 % 11,897 $8,736

Total Program Service Expense 45,514 44,756 758 2 % 46,638 46,754

Fundraising & Operating Expenses

Salaries & Benefits $14,259 $14,006 $253 2 % $13,979 $13,329

Service & independent contractors 344 628 (284) (45)% 910 $811

Other Transfers & Expenses 2,944 2,392 552 23 % 2,409 $2,555

Total Fundraising & Operating Expenses 17,547 17,026 521 3 % 17,298 16,695

Total Expenses $63,060 $61,782 $1,278 2 % $63,936 $63,449

OPERATING PROFIT BEFORE NON-CASH CHANGES $8,604 $8,457 $147 2 % $(4,556) $(7,479)

Unrealized Investment Gains (Losses) 37,752 36,293 1,459 4 % 59,478 (7,553)

Total Non-Cash Changes $37,752 $36,293 $1,459 4 % $59,478 $(7,553)

NET OPERATING PROFIT $46,356 $44,750 $1,606 4 % $54,922 $(15,032)


INCOME STATEMENT

Variance

[Page 12 of 22]


27



Net Operating Profit $46,356 $44,750 $1,606 4 % $54,922 $(15,032)


Investments (gains) losses (37,752) (36,293) (1,459) (4)% (59,477) 7,553

Change in assets & liabilities (12,623) (14,568) 1,945 13 % (2,424) (3,415)

Total Cash From Operating Activities $(4,019) $(6,111) $2,092 34 % $(6,979) $(10,894)


Capital Expenditures $0 $0 $0 % $(2,936) $(194)

Net (Purchases) Sale of Investments 14,265 14,256 9 0 % 13,605 9,698

Interest dividends reinvested (7,665) (7,589) (76) (1)% (4,465) (3,927)

Total Cash From Investing Activities $6,600 $6,667 $(67) (1)% $6,204 $5,577


Principal Paid on Debt (375) (375) 0 0 % (352) (343)

Total Cash From Financing Activities $(375) $(375) $0 0 % $(352) $(343)

CHANGE IN CASH 2,206 181 2,025 1,119 % (1,128) 1,065

Cash, Beginning of Year 803 2,726 (1,923) (71)% 1,931 866

Cash, End of Year $3,009 $2,907 $102 4 % $803 $1,931

Total Cash & Investments $83,741 $76,695 7,046 9 % $79,282 $79,924

Days Cash on Hand 485 454 32 7 % 453 460

Variance



[Page 13 of 22]


28


Revenue is forecasted to be $84k unfavorable to the original budget due to a decrease in membership. In order to offset this decrease in revenue, program expenses for the Association have been adjusted. Overall, the Association is forecasting an increase in net operating revenue of $19k and an increase in ending cash of $1k.


Program expenses have been adjusted to compensate for forecasted decreases in membership revenue.

University of South Florida Alumni Association, Inc.FY 2018 Mid-Year Forecast

MID-YEAR FORECAST

[Page 14 of 22]


29


REVENUES Membership $517 $619 $(102) (16)% $631 $555

Program Revenue $161 150 $11 7 % 155 122

License Plate Revenue $393 397 $(4) (1)% 388 392

Gifts & Donations $183 179 $4 2 % 227 239

Investment Income (Loss) 239 241 (2) (1)% 218 198

Budget Support 625 625 0 0 % 624 616

Royalties 519 507 12 2 % 530 524

Sponsorship 245 248 (3) (1)% 61 98

Total Revenues $2,882 $2,966 $(84) (3)% $2,834 $2,744

EXPENSESSalaries & Benefits $1,688 $1,691 $(3) (0)% $1,514 $1,451

Program Services 780 862 (82) (10)% 870 961

Scholarships & Fellowships 68 73 (5) (7)% 83 54

Contractual Services 27 23 4 17 % 26 23

Materials & Supplies 3 4 (1) (25)% 2 5

Utilities/Repairs/Maintenance 8 9 (1) (11)% 7 5

Total Expenses $2,574 $2,662 $(88) (3)% $2,502 $2,499NON-CASH CHANGES $308 $304 $4 1 % $332 $245

Unrealized Investment Gains (Losses) 399 384 15 4 % 538 (399)

Total Non-Cash Changes $399 $384 $15 4 % $538 $(399)

NET OPERATING PROFIT $707 $688 $19 3 % $870 $(154)


INCOME STATEMENT

Variance

[Page 15 of 22]


30



Net Operating Profit $707 $688 $19 3 % $870 $(154)


Unrealized Gain on Investments (399) (384) (15) (4)% (538) 399

Change in operating assets/liabilities 130 130 0 0 % (97) 7

Total Cash From Operating Activities $438 $434 $4 1 % $235 $252


Net (Purchases) Sales of Investments (422) (433) 11 2 % (247) (246)

Total Cash From Investing Activities $(422) $(433) $11 2 % $(247) $(246)


[Enter financing item here] 0 0 0 % 0 0

Total Cash From Financing Activities $0 $0 $0 % $0 $0

CHANGE IN CASH 16 1 15 1,460 % (12) 6

Cash, Beginning of Year 1 15 (14) (93)% 13 7

Cash, End of Year $17 $16 $1 4 % $1 $13

Total Cash & Investments $1,324 $1,240 $84 7 % $1,224 $1,248

Days Cash on Hand 188 170 18 10 % 179 182


Variance


[Page 16 of 22]


31


Favorable variances are forecasted for FY18 from reduced expenditures for Salary & Benefits ($169K) and Research Park Operations ($443K). Total expenses are forecasted to save $657K from FY18 plan.

Our forecast includes a reduction in Rental Revenue of $130K for the expense savings that will correspondingly reduce the Rental Revenue that is charged to the University. The University will recognize a savings in the rent expense paid to the Research Foundation in FY18.

The forecasted increase in Operating Profit from expense savings, will generate a favorable variance in Cash Flow of $618K. In addition, the forecasted decrease in CAP-X of $1.287M will favorably increase cash flow in FY18, for a total of $1.9M.


Occupancy is presently at 96% for the Research Park overall. Unoccupied space includes 6,278 sf that is in process for expanded Incubator office and laboratory facilities. Management is vetting interest from both USF Colleges for recruiting faculty and several companies who are showing interest in the remaining 5,754 sf available space.

USF Research Foundation, Inc.FY 2018 Mid-Year Forecast

MID-YEAR FORECAST

[Page 17 of 22]


32


REVENUES Rental Revenue $7,646 $7,816 $(170) (2)% $7,204 $7,932

Intellectual Property (IP) Revenue 3,000 3,000 0 0 % 2,881 2,798

Less IP Revenue (on behalf of USF) (500) (500) 0 0 % (573) (598)

Incubator Program Revenue 1,944 1,838 106 6 % 1,764 2,300

NMR License Revenue 307 244 63 26 % 307 307

Other Operating Revenues 195 194 1 0 % 185 190

Total Revenues $12,591 $12,591 $(0) (0)% $11,768 $12,929

EXPENSESSalaries & Benefits $1,596 $1,765 $(169) (10)% $1,301 $1,250

Contractual Services 98 105 (6) (6)% 85 165

Program Exp - IP/Incubator/Univ Support 2,349 2,349 (1) (0)% 1,984 1,937

Operations - Research Park 3,007 3,450 (443) (13)% 2,895 3,154

Other Operating Expenses 49 51 (2) (3)% 51 62

Interest Expense 685 686 (1) (0)% 863 1,719

Depreciation & Amortization 2,888 2,923 (35) (1)% 2,822 2,959

Total Expenses $10,672 $11,329 $(657) (6)% $10,000 $11,246

OPERATING PROFIT BEFORENON-OPERATING REVENUE $1,919 $1,262 $657 52 % $1,767 $1,683

Investment Income (Loss) $2,585 $1,474 $1,111 75 % 3,465 (374)

Other Non-Operating Income (Loss) 0 0 0 % (30) (989)

Total Non-Operating Revenue $2,585 $1,474 $1,111 75 % $3,434 $(1,363)NET INCOME(Increase in Net Position) $4,504 $2,736 $1,768 65 % $5,202 $320


INCOME STATEMENT

Variance

[Page 18 of 22]


33



Net Income $4,504 $2,736 $1,768 65 % $5,202 $320

Adj for Non-Cash Revenue/Expenses:

Add back Depreciation/Amortization Exp 2,888 2,923 (35) (1)% 2,822 2,959

Add back Other Non Cash Expenses 75 75 0 0 % 158 126

Less Non Cash Investment Gain (Loss) (2,585) (1,474) (1,111) (75)% (3,447) 374

Less Other Non Cash Revenue (92) (29) (63) (218)% (79) 1,583

Change in Assets and Liabilities (net) 0 (60) 60 100 % 346 1,646

Total Cash From Operating Activities $4,790 $4,172 $618 15 % $5,002 $7,008


Capital Expenditures $(312) $(1,598) $1,287 81 % $(698) $(516)

Net Purchase of Investments 0 0 0 % (2,000) (3,600)

Transfer from Venture Investment Fund 150 150 0 0 % 150 0

Seed Capital Loan Funding (150) (150) 0 0 % (150) (175)

Total Cash From Investing Activities $(312) $(1,598) $1,287 81 % $(2,698) $(4,291)


Redeem Investments for Debt Payoff $0 $0 $0 % $9,254 $0

Pay Off Debt 0 0 0 % (9,525) 0

Principal Paid on Debt (1,590) (1,590) 0 0 % (1,565) (1,680)

Total Cash From Financing Activities $(1,590) $(1,590) $0 0 % $(1,836) $(1,680)

CHANGE IN CASH 2,889 983 1,905 194 % 469 1,037

Cash, Beginning of Year 4,909 4,909 0 0 % 4,440 3,403

Cash, End of Year $7,797 $5,892 $1,905 32 % $4,909 $4,440

Total Cash & Investments $40,842 $37,887 $2,955 8 % $35,430 $38,894

Days Cash on Hand 387 263 124 47 % 243 452



Variance

[Page 19 of 22]


34


Housing System forecasted revenues have increased $2.1 M over the Plan, due to higher occupancy. Actual occupancy was 102% in Fall 2017, compared to 95% in the Plan.

Housing System forecasted operating expenses have increased $2.2 M over the Plan, due to higher occupancy and significant renovations to the Housing facilities.

Forecasted interest expense increased by $0.2 M over the Plan, due to the repricing of several direct placement bonds, as a result of the reduction in the corporate tax rate, effective January 1, 2018.


USF Financing Corporation & USF Property CorporationFY 2018 Mid-Year Forecast

MID-YEAR FORECAST

The Corporation is negotiating to refund three of its Build America Bonds at tax-exempt fixed rates, to reduce interest expense and credit risks. The transactions are expected to close in March 2018.

The Corporation's non-cash gain (loss) on its 50% equity investment in INTO USF, Inc. is solely dependent on INTO USF's net operating profit.

Total Revenues are forecasted at $56.7 M, exceeding the Financial Plan by $2.3 M, or 4%.

Total Expenses are forecasted at $48.9 M, exceeding the Financial Plan by $2.4 M, or 5%.

The Corporation's forecasted gain of $0.5 M on its 50% equity investment in INTO USF, Inc. decreased $1.2 M from the Plan. The reduction in INTO USF's net income is a result of lower student enrollment.

The forecasted positive change in fair value of swaps is $2.7 M, reflecting an increase in market rates as of January 2018. Correspondingly, transfers to DSOs of $2.7 M offset the change in fair value of swaps. Swap values and the related non-cash transfers are not forecasted in the Plan.

The $6 M Eye Institute project is on schedule and on budget. Expected to be complete in June 2018.

The Corporation will be issuing an Invitation to Negotiate to banks to refund the Series 2013B Health bonds, with the objectives of locking in attractive long-term fixed rates and reducing risks. The transaction will close by July 1, 2018, with the expiration of the swap and the current direct placement facility with JP Morgan Chase Bank.

[Page 20 of 22]


35


REVENUES USF housing system gross revenues $46,196 $44,058 $2,138 5 % $44,522 $42,863

USF Marshall Center lease revenue 1,496 1,496 0 0 % 1,523 944

USF athletics system lease revenue 1,989 1,978 11 1 % 1,985 1,992

USF Arena revenue 878 878 0 0 % 883 952

UMSA lease revenue 4,261 4,107 154 4 % 4,085 4,612

HPCC (CAMLS) lease revenue 1,855 1,854 1 0 % 1,851 1,853

Total Revenues $56,675 $54,371 $2,304 4 % $54,849 $53,216

EXPENSESUSF housing system operating expenses $27,664 $25,435 $2,229 9 % $25,994 $22,019

Management fee 691 691 0 0 % 672 665

Interest expense 12,241 12,001 240 2 % 12,330 13,076

Depreciation expense 7,827 7,854 (27) (0)% 7,811 7,811

General and administrative expenses 534 549 (15) (3)% 541 523

Total Expenses $48,957 $46,530 $2,427 5 % $47,348 $44,094

OTHER REVENUES (EXPENSES)Transfers (to) from DSOs/auxiliaries $(7,827) $(7,888) $61 1 % $(7,502) $(9,140)

Loss on debt extinguishment 0 0 0 % (54) 0

Debt extension closing costs (39) 0 (39) % 0 0

Interest income 203 47 156 332 % 71 18

Total Other Expenses $(7,663) $(7,841) $178 2 % $(7,485) $(9,122)

OPERATING PROFIT BEFORE NON-CASH CHANGES $55 $0 $55 % $16 $0

Gain in INTO USF equity investment 489 1,700 (1,211) (71)% 1,835 2,224

Change in fair value of swaps 2,657 0 2,657 % 6,945 (3,344)

Transfers (to) from DSOs to offset swaps (2,657) 0 (2,657) % (6,945) 3,344

Total Non-Cash Changes $489 $1,700 $(1,211) (71)% $1,835 $2,224

NET OPERATING PROFIT $544 $1,700 $(1,156) (68)% $1,851 $2,224


INCOME STATEMENT

Variance

[Page 21 of 22]


36



Net Operating Profit $544 $1,700 $(1,156) (68)% $1,851 $2,224


Amortization of debt issuance costs 89 89 0 0 % 89 89

Loss on debt extinguishment 0 0 0 % 54 0

Depreciation expense 7,827 7,854 (27) (0)% 7,811 7,811

Amortization of premiums on debt (1,724) (1,724) 0 0 % (1,840) (2,234)

Change in fair value of swaps (2,657) 0 (2,657) % (6,945) 3,344

Change in INTO USF equity investment (489) (1,700) 1,211 71 % (1,835) (2,224)

Cash dividend received from INTO USF 0 0 0 % 6,000 0

Adjustments for Changes in

Operating Assets and Liabilities 26,283 26,611 (328) (1)% 21,936 22,454

Total Cash From Operating Activities $29,873 $32,830 $(2,957) (9)% $27,121 $31,464


Capital Expenditures $(6,000) $(6,000) $0 0 % $0 $0

CD Maturity/Renewal - INTO USF dividend (24) 0 (24) % (6,000) 0

Net (Purchases) Sales of Investments (1,164) (1,312) 148 11 % (3,155) (4,100)

Total Cash From Investing Activities $(7,188) $(7,312) $124 2 % $(9,155) $(4,100)


Cash Paid for Debt Issuance Costs $(39) $0 $(39) % $(53) $0

Debt Proceeds - Refunding 0 0 0 % 37,920 0

Principal Payments - Refunding 0 0 0 % (37,920) 0

Principal Payments (11,733) (11,733) 0 0 % (11,076) (7,040)

Interest Payments (13,913) (13,785) (128) (1)% (12,337) (15,074)

Return of Cash Pledged to Counterparty 3,000 0 3,000 % 5,500 (5,250)

Total Cash From Financing Activities $(22,685) $(25,518) $2,833 11 % $(17,966) $(27,364)

CHANGE IN CASH 0 0 0 % 0 0

Cash, Beginning of Year 3 3 0 0 % 3 3

Cash, End of Year $3 $3 $0 0 % $3 $3

Total Cash & Investments $39,587 $39,647 $(60) (0)% $38,400 $29,245

Days Cash on Hand 338 359 (21) (6)% 339 278



Variance

[Page 22 of 22]


37

Agenda Item: IVb


Issue: DSO Investment Reporting to the USF Board of Trustees ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: The USF Board of Trustees adopted the USF System Investment Policy in 2006.

• The USF Investment Policy applies to the University and Direct Support Organizations (DSOs).

DSOs are governed by independent Boards of Directors. DSO investments are governed by DSO Investment Committees. Periodic DSO Investment Reports, for significant DSOs, will be provided to the USF Board of Trustees. DSO Investment Reports as of June 30, 2017 being presented today are:

1. University Medical Services Association, Inc. (UMSA) 2. USF Research Foundation, Inc.

Financial Impact: The Direct Support Organizations of the University of South Florida (DSO) are organized and operated exclusively to assist the University to achieve excellence by providing supplemental resources from private gifts and bequests and valuable education support services. These organizations are authorized by Florida Statute 1004.28 to receive, hold and administer property and make expenditures for the University. ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Date: February 13, 2018 Supporting Documentation Online (please circle): Yes No DSO Investment Reports USF System or Institution specific: USF System Prepared by: Fell L. Stubbs, University Treasurer, (813) 974-3298


38

UNIVERSITY OF SOUTH FLORIDA Making Life Better®

Investment ReportUSF Health CareUniversity Medical Service Association, Inc. and Medical Services Support Corporation

February 13, 2018

1


39

Making Life Better®

Investment Committee

Members Title Tenure

Harvey M. Greenberg, M.D., MBA (Chair)

Associate ProfessorDirector of Radiation Therapy

9 years

Neil A. Fenske, M.D. Chairman, Dermatology & Cutaneous SurgeryProfessor, Department of Oncologic SciencesProfessor & Chair, College of Medicine DermatologyProfessor, College of Medicine Pathology & Cell Biology

9 years

Charles Paidas, M.D. (Replacement TBD)

Assoc Dean, College of Medicine SurgeryVice Dean, Graduate Medical Education, Gme, USF HealthProfessor of Surgery & Pediatrics, Surgery, College of Medicine

9 years

Joann M. Strobbe Controller, Vice Dean and Senior AVP of Finance and Administration USF Health & Morsani College of Medicine

9 years

Fell Stubbs University Treasurer 9 years

Richard J. Sobieray Senior Associate Vice President and Chief Financial Officer, USF HealthSenior Associate Dean, Morsani College of Medicine

3 years

• Subcommittee of the USF Health Care Executive Management Committee (EMC) responsible for oversight and authority of the investment fund

• Committee membership overlays with the University Investment Committee

2


40


Investment Management

• Portfolio Objectives– Liquidity– Mirrors university investment allocations– Primarily consists of long term funds; however allocations to short term

funds are permissible– A total portfolio return which outperforms appropriate market and asset

benchmark portfolio returns over a rolling 1,3, and 5 year time horizon, net of all investment expenses

– Positive rolling 5 year total return, net of inflation as defined by the Consumer Price Index (CPI), and net of all fund investment and operating expenses

– Target allocations are reviewed once per year & voted on by the committee.

• Utilize the University’s investment consultant, Cambridge Associates

3


41


Asset AllocationAs of September 30, 2017

$, IN MILLIONS

Minimum Maximum

Cash & Cash Equivalents (< 180 days) $9.6 83% 70% 0% 100%

Fixed Income - Domestic (180 days +) $2.7 17% 30% 0% 90%

CASH & SHORT TERM INVESTMENTS $12.4 100% 100%

Fixed Income - Domestic 20% 0% 40%Fixed Income - Foreign

Equity - Domestic $2.0 24% 25% 10% 50%Equity - Foreign $3.9 44% 30% 10% 35%Inflation Hedging $1.6 19% 10% 0% 20%Alternative Investments $0.0 14% 15% 0% 20%

TOTAL LONG TERM INVESTMENTS $7.6 100% 100%

LIMITSASSET CLASS

SHORT TERM INVESTMENTS

LONG TERM INVESTMENTS

Target %

ACTUAL$

ACTUAL%

4


42


Performance ReportAs of September 30, 2017

$, IN MILLIONS

Fixed Income - Domestic (180 days +) Mar-09 $2.7 0.6% 0.9% 1.9% 1.6% 2.6%

Fixed Income - Domestic

Fixed Income - Foreign Equity - Domestic Jun-14 $2.0 4.5% 18.5% 10.7% 14.1% 10.2%Equity - Foreign Mar-10 $3.9 6.9% 19.1% 4.8% 9.3% 6.7%Inflation Hedging Jun-13 $1.6 6.9% -1.3% -7.6% 0.1% -1.5%Alternative Investments

WEIGHTED PORTFOLIO RETURN $10.3 4.7% 10.9% 3.2% 1.6% 5.0%

PORTFOLIO BENCHMARK 2.5% 11.0% 3.2% 1.7% 3.7%

VALUE ADD 2.2% -0.1% 0.0% -0.1% 1.3%

AnnualizedSince

Inception (%)

QuarterTo Date (%)

CumulativeTrailing

1 Year (%)

AnnualizedTrailing

3 Year (%)

AnnualizedTrailing

5 Year (%)


LONG TERM INVESTMENTS

ASSET CLASS Inception Date

MarketValue ($)

5


43

1

Investment Portfolio OverviewJune 30, 2017

for University of South Florida Board of Trustees

Finance Committee

Administrative Finance CommitteeMr. Nick Trivunovich, ChairVice President, Business & Finance and Chief Financial Officer, USF System

Dr. Sebastian DewhurstCEO & Director of Business DevelopmentEASA, Inc.

Ms. Linda O’RourkePrincipal, O’Rourke & Associates, LLC

Dr. Paul R. SanbergSenior Vice President for Research, Innovation & Knowledge EnterprisePresident, USF Research Foundation

Mr. Harry D. Venezia, Jr.Managing Director, HealthCare Capital Advisors


44

2

ALLOCATION BY INVESTMENT FUND

USF Research Foundation Investment Portfolio

As of June 30, 2017

3 Investment Accounts- Long Term Investments (+ 10 Years)

USF Foundation Endowment Pool 22,506,013$ - Intermediate Term Investments (5 - 7 Years)

SunTrust InvestmentsFoundations & Endowments Specialty Practice 5,990,767$

- Short Term InvestmentsVanguard 2,023,874$

30,520,654$


45

Portfolio Asset AllocationCollective Basis – All Accounts

as of June 30, 2017

3

Investment Horizon Long Term Intermediate Short Term

Asset Class Foundation SunTrust Vanguard TotalTotal % ofPortfolio

Min %

Max %

Alternatives 8.2% 1,845,493$ 6% 0% 20%Equity- Domestic 36.7% 52.8% 11,436,101 38% 25% 50%Equity- Foreign 27.2% 18.5% 7,230,607 24% 15% 35%Fixed Income 19.2% 28.7% 100.0% 8,050,430 26% 15% 40%Real Assets 8.7% 1,958,023 6% 0% 20%Grand Total 100% 100% 100% $ 30,520,654 100%

Investment Policy

Equity- Domestic38%

Real Assets6%

Research Foundation Total Portfolio $30,520,654

Alternatives

Equity- Domestic

Equity- Foreign

Fixed Income

Real Assets


46

4

USF Research Foundation PortfolioAs of June 30, 2017

• Long-Term Pool Investment with USF Foundation Comprises 74% of Research Foundation Portfolio

• Intermediate Investment with SunTrust Foundations and Endowments Specialty Practice – Investment Advisor Kim Krause, CFA

Vanguard

SunTrust

Foundation LT Pool


47

5

USF Research Foundation Portfolio Asset Allocation

As of June 30, 2017$, IN MILLIONS

Minimum Maximum

Cash & Cash Equivalents (< 180 days) $3.9 66% 65% 0% 100%

Fixed Income - Domestic (180 days +) $2.0 34% 35% 0% 90%CASH & SHORT TERM INVESTMENTS $5.9 100% 100%

Fixed Income - Domestic $1.7 28.5% 30% 15% 40%Fixed Income - Foreign 0% 20%Equity - Domestic $3.2 53.0% 50% 25% 50%Equity - Foreign $1.1 18.5% 20% 15% 35%Real Assets 0% 0% 20%Alternative Investments 0% 0% 20%TOTAL INTERMEDIATE TERM INVESTMENTS $6.0 100% 100%

Fixed Income - Domestic $4.3 19% 20% 15% 40%Fixed Income - Foreign 0% 20%Equity - Domestic $8.3 37% 35% 25% 50%Equity - Foreign $6.1 27% 25% 15% 35%Real Assets $2.0 9% 10% 0% 20%Alternative Investments $1.8 8% 10% 0% 20%TOTAL LONG TERM INVESTMENTS $22.5 100% 100%

LONG TERM INVESTMENTS (USF Foundation Endowment Pool)

Target %

ACTUAL$

ACTUAL%

LIMITSASSET CLASS

INTERMEDIATE TERM INVESTMENTS (SunTrust Investment Services)



48

6

USF Research Foundation Investment Performance

As of June 30, 2017$, IN MILLIONS

Fixed Income - Domestic (180 days +) $2.0 0.8% 1.3% 2.0% 2.4% 3.0%

Fixed Income - Domestic 11/1/2013 $1.7 1.4% 0.1% 2.1% NA 1 2.8%Fixed Income - Foreign 11/1/2013Equity - Domestic 11/1/2013 $3.2 3.4% 14.6% 5.7% NA 1 8.0%Equity - Foreign 11/1/2013 $1.1 6.8% 16.7% -0.3% NA 1 1.2%Real Assets 11/1/2013Alternative Investments 11/1/2013

Fixed Income - Domestic 6/30/1995 $4.3 1.9% 5.5% 3.4% 4.8% 6.4%Fixed Income - Foreign Equity - Domestic 9/30/1995 $8.3 3.7% 20.3% 8.6% 14.3% 10.5%Equity - Foreign 6/30/1995 $6.1 8.0% 24.6% 3.5% 9.5% 6.8%Real Assets 3/31/1997 $2.0 0.8% 0.1% -0.8% 1.6% 3.9%Alternative Investments 12/31/1998 $1.8 NA 2 NA 2 NA 2 NA 2 NA 2

TOTAL PORTFOLIO / WEIGHTED RETURN $30.5 4.0% 14.4% 5.5% 9.6% 8.3%

PORTFOLIO BENCHMARK 3.1% 13.5% 5.3% 9.3% 8.3%

VALUE ADD 0.9% 0.9% 0.2% 0.3% 0.0%

AnnualizedTrailing

5 Year (%)


LONG TERM INVESTMENTS (USF Foundation Endowment Pool)

INTERMEDIATE TERM INVESTMENTS (SunTrust Investment Services)

ASSET CLASS Inception Date

MarketValue ($)

AnnualizedSince

Inception (%)

QuarterTo Date (%)

CumulativeTrailing

1 Year (%)

AnnualizedTrailing

3 Year (%)


49

7

Research Foundation Investment in Long-Term Pool

• Research Foundation Holds $22.5 Million Position With USF Foundation Long-Term Pool– Original investment of $1 million in 1993 with several subsequent investments over the years– $2.1 million redemption in July 2016, followed by $2 million investment in May 2017– All distributions being reinvested, about $9.9 million since inception

• Projected Reinvested Earnings For FY 2018: $1.17 Million

$10 MillionPrincipal Value of Invested Assets

$22.5 MilCurrentMarket Value

$12.5 MilTotal Gains

Investment +Dividends


50

USF Foundation

8

1-YR 3-YR 5-YR Since Inception

Endowment Fund 16.4% 6.2% 10.2% 9.5%

Benchmark 14.9% 5.5% 9.9% 9.1%

Portfolio Performance - June 30, 2017

SunTrustQuarter 9.30.17

Quarter 6.30.17 1-YR 3-YR Since Inception

SunTrust 3.65% 3.09% 11.29% 4.03% 5.48%Blended Benchmark 3.58% 3.05% 12.02% 5.69% 6.94%

Portfolio Performance - June 30, 2017

• Account Inception: November 1, 2013 – $5M transferred from Vanguard ST Bond Fund

• Relationship provides benefits from additional services supporting small cap equity transactions

Vanguard 1-YR 3-YR 5-YR

ST Corp Bond Fund 1.3% 2.0% 2.4%

Benchmark 1.5% 2.1% 2.5%

Portfolio Performance - June 30, 2017Significant Transactions• Oct. 2013 – $7M reallocated to other investment

funds ($5M SunTrust & $2M Foundation)

• July 2016 – $7,114,438 transferred to operating account for debt payoff

• Nature of the Agency Investment Program is long term


51

Investment Portfolio Objectives• Short Term Investments (Vanguard)

• Investment of excess operating funds and custodial cash while maintaining liquidity

• Funding 3-6 months operating cash reserves

• Intermediate Investments (SunTrust)• Asset allocation to reflect less risk tolerance than long term investments• Investment growth• Immediate accessibility to reserve funds for maintenance and operations of

Research Park, if needed. No restriction on frequency of withdrawals.• Potential funding source for Research Park development

• Long Term Investments (USF Foundation Endowment Pool)• Consistent with long term investment objectives of Foundation• Investment agreement provides for auto-reinvestment of all dividends• Withdrawals limited to one per calendar year; minimum of 60 days notification

9


52

Investment Governance

• Administrative Finance Committee is responsible for financial oversight of investment portfolio

• USF Research Foundation defers to the USF Foundation for management of long term investments. The Foundation has retained Wilshire Associates as its investment advisor since 2000

• USF Research Foundation investment policies are in compliance with University investment policy

• Committee was recently expanded to 5 members, comprised of 2 internal and 3 external with investment management experience

10


53

Agenda Item: IVc


Issue: USF 2017 Audited Financial Statements ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: The USF 2017 Financial Statements and associated audit report were released by the State of Florida Auditor General on December 15, 2017. Jennifer Condon, Controller will review the immaterial audit adjustments that resulted from the audit. Financial Impact: Immaterial ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Date: Finance Committee, 1/19/17 Supporting Documentation Online (please circle): Yes USF 2017 Financial Statements and Audit Report USF System or Institution specific: USF System Prepared by: Jennifer Condon, University Controller (813) 974-7696


54

http://www.usf.edu/business-finance/controller/accounting-reporting/usffinancialauditsd.aspx

Agenda Item: IVd


Issue: USFSP Proposed Public-Private Partnership (P3) Housing Development Project ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: The University of South Florida St. Petersburg has experienced a steady rise in student enrollment over the last five years. In addition, the university has already exceeded capacity to meet current on-campus student housing demand. In response to growing demand for on-campus housing, USFSP is in the process of negotiating a public private partnership with a national firm to develop a new 550 bed residence hall with a new dining facility. Financial Impact: The public private partnership allows for major capital improvements to be done on the St. Petersburg campus with modest impact to the financial position of the University. ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Infrastructure to Meet Current and Future Needs Sustainable Funding

Student Success and Culture Supporting Documentation: PowerPoint Presentation USF System or Institution specific: USFSP Prepared by: Joseph Trubacz, Regional Vice Chancellor Administrative & Financial Svcs


55

University of South FloridaSt. Petersburg

P3 Project UpdateFebruary 13, 2018

Page 1


56

Project Description

Project Cost - $54 million Student Housing - 550 beds Dining Facility - 15,000 sq. ft.

Page 2


57

Page 3

Changes Since August 2017 Board Approval

Removal of 21,135 GSF conference center Delivery has been changed to Fall 2020 EdR team taxable interest on subordinate corporate debt ($5.0M) has

been reduced to 10.00% EdR team will receive .50% of project revenue as an asset

management fee (not recognized in Debt Service Coverage Ratio calculations)

Negotiations on-going with Food Service provider to adjust for loss of conference center and possible removal of mandatory meal plan


58

Project Structure

Ground Sublease between University of South Florida Board of Trustees and National Campus and Community Development Corporation 501(c)(3) special purpose entity (“NCCD”) for 40 years from substantial completion.

NCCD enters into Asset Management Agreement and Operating Agreement with developer Education Realty Trust, Inc. (“EdR”).

USF St. Petersburg retains all residential life (programmatic and academic services) and the administrative services (marketing, assignment, leasing, billing and collection).

Advisory Committee approves the student rates and operating budget for the Project and is made up of 5 members: 3 USF System members, 1 NCCD member, 1 EdR member.

Page 4


59

Project Structure (cont.) Subordinated debt at 10% of the Project cost will be issued by EdR.

(10% return to the Private Partner) Project transfers the risk of construction, financing, occupancy,

operations and maintenance. Project pro forma meets the required 1.30x debt service coverage ratio.

(Proposed student housing rates remain the same as those presented in the August 2017 BOT presentation adjusted to a Fall 2020 delivery)

Project preserves USF System’s “Aa2” and Housing System’s “A1” credit rating.

USF St. Petersburg retains all net cash flow to be used for investment in existing housing inventory and student success initiatives.

USF System has an option to purchase the Project after year 10. Dining Services Contract negotiations are ongoing. No Exceptions to the FL BOG P3 Guidelines.

Page 5


60

Project Timeline

Prior to March 28 Submission of materials to FL BOG

April 30 USF SP Campus Board approval

May 22 USF BOT Finance Committee approval

June 12 USF BOT approval

June 26-28 FL BOG approval

August St. Petersburg City Council approval and financial close

Page 6


61

Agenda Item: IVe


Issue: USF St. Petersburg Student Housing Report ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: On December 1, 2016, the USF Board of Trustees approved a three-year housing rental rate increase plan (fiscal years 2017-2020) to achieve a preferred 1.4 debt service coverage ratio by fiscal year 2019-2020. The Board’s approval of the rental rate increase requires USFSP staff to return annually to the Board Finance Committee to report on the performance of the housing system at USFSP to ensure that the assumptions underlying the increase remain valid. This report is presented as an information item but the Board Finance Committee retains the authority to refer the increase to the full Board for reconsideration if it disagrees with the report. Financial Impact: See supporting documentation for detailed financial impact. ________________________________________________________________ Strategic Goal(s) Item Supports: Student Success; Sound Financial Management BOT Committee Review Date: February 13, 2018 Supporting Documentation Online (please circle): Yes No USF St. Petersburg Student Housing Report USF System or Institution specific: USF St. Petersburg Prepared by: Jacob Diaz, Dean of Students & Director of Housing and Residence Life


62

USF St. PetersburgStudent Housing ReportFebruary 2018


63

Overview• In December 2016, the USF Board of Trustees approved a

three-year USFSP Student Housing rental rate structure (FYE 2018 – FYE 2020)

*P3 Project was anticipated to open in fall 2019 eliminating triple room configurations

USFSP Housing Fall 2017 (FYE 2018) Fall 2018 (FYE 2019) Fall 2019 (FYE 2020)

Room Type Bed CountSemester

Rate Increase Bed CountSemester

Rate Increase Bed CountSemester

Rate IncreaseRHO Triple 52 $ 2,922 0.0% 52 $ 2,922 0.0% 0 $ 2,922 0.0%RHO Double/Studio 8 $ 4,049 7.0% 8 $ 4,332 7.0% 48 $ 4,505 4.0%RHO Single 311 $ 4,197 7.0% 311 $ 4,491 7.0% 308 $ 4,671 4.0%USC Triple 148 $ 2,922 0.0% 148 $ 2,922 0.0% 0 $ 2,922 0.0%USC Double 88 $ 4,049 7.0% 88 $ 4,332 7.0% 196 $ 4,505 4.0%Affiliate Double 50 $ 4,984 0.0% 50 $ 4,984 0.0% 0 $ 4,984 0.0%P3 Housing (New) 550 $ 4,896 All Beds 657 4.3% 657 4.3% 1102 4.0%Debt Service Coverage Ratio (Forecast) 1.35x 1.39x 1.43x


64

Overview• Purpose of rental rate increases:

– USFSP Housing Inventory will meet the Rating Agencies preferred 1.4x Debt Service Coverage Ratio (DSCR) in 2019-2020

– Preparation for occupancy change once P3 project is completed, University owned housing will return to 95% occupancy

– Address increasing costs of staffing, utilities, and maintenance of facilities


65

Update• USFSP Housing opened Fall 2017 at 126%

occupancy with continued demand for on-campus housing

• Housing Enhancements– Additional staffing to meet service needs– New shower base project started in RHO– Additional cameras for safety and security– Bike corral for both RHO and USC– Hammock stands for student gathering

• On target to meet Debt Service Coverage Ratio of 1.39 in 2018-2019


66

For our StudentsBoard of Trustees Finance Committee - New Business - Information Items

67

Value of Living On-CampusResearch indicates living on-campus improves

student retention and graduation rates• Safety• Convenience (close to classes and resources)• 5 types of housing options• Our 4 Living Learning communities and access to

faculty outside the classroom• Academic success (graduation and retention)• Connection to campus life• Flexibility (change rooms or roommates, length

of contract, cancellation options)


68

Cost Pressures• Matching state/university salary & benefit

increases – Minimum wage, admin/staff wages, health premiums

and other benefits– Since the University Student Center (USC) Housing

opened in 2012, compensation and benefits increased from $178,000 to $353,000

• Increased utility and technology costs+ 4% Electric+ 36% Cable * + 3% Water+ 56% Chilled Water**

* Cable contract expired; new rates lowest comparable available** Rate increase for chilled water plant on campus


69

Local Market Comparison• Lack of affordable student housing near campus• Downtown housing prices too expensive for

students, and some will not rent to students– Camden Pier District: $4,140/month– Modera Prime 235: $2,515/month– Hermitage: $4,040/month– Beacon 430: $2,800/month

CurrentRates

CamdenPier

District

ModeraPrime 235 Hermitage Beacon 430 RHO

(Single)

Semester Rate per Bed $6,410 $5,659 $9,090 $6,300 $4,197


70

Financial Projections(based upon approved rates)

*P3 Project has been deferred for one year, to open fall 2020

USF St. PetersburgFYE 2017 (Actual)

FYE 2018 (Forecast)

Operating Revenue $ 7,102,606 $ 7,387,252 Operating Expenses 2,888,184 3,570,200 Net Income 4,214,422 3,817,052 Debt Service 2,794,555 2,829,654 Debt Service Coverage Ratio 1.51x 1.35xFall Occupancy Rate 121% 126%

USF SystemFYE 2017 (Actual)

FYE 2018 (Forecast)

Debt Service Coverage Ratio 1.44x 1.35x


71

Rental Rates

*Previous recommendation 4.3%*Change in anticipated Fall 2018 Bed Count results in a 4.1% average rate increase overall for Fall 2018

*Deferral of P3 Project results in reduced overall percentage rate increases

USFSP Housing Fall 2018 (FYE 2019)

Room Type Bed Count Approved Rate IncreaseRHO Triple 56 $ 2,922 0.0%RHO Double/Studio 8 $ 4,332 7.0%RHO Single 309 $ 4,491 7.0%USC Triple 180 $ 2,922 0.0%USC Double 76 $ 4,332 7.0%Affiliate Double 50 $ 4,984 0.0%All Beds 679 4.1%


72

Documents

Board of Trustees Finance Committee - Meeting AgendaUniversity s investment portfolio and he is satisfied that the niversity U portfolio is performing well and is aggressive enough