Brandeis University

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• Brandeis University
• Fall Forum
• October 2004

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Agenda

• Overview
• University Budgets and Planning
• Endowment
• Business Practices and Risk Management
• Capital Projects
• Information Technology
• Q A

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Introductions

• Mark Collins Associate VP University Services
• Dan Feldman Associate VP Capital Projects
• Deb Gratto Associate VP Human Resources
• Perry Hanson Chief Information Officer
• Jim Hurley Associate VP Budget Planning
• Maureen Murphy Associate VP and Controller
• Jeff Solomon Associate VP and Treasurer
• Judith Sizer General Counsel

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Brandeis University Perspectives
Todays Presentation
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Overview

• Operate within new and changing regulatory
  environment
• Context progress since FY 1995
• Trustee mandate to live within our means
• External pressures create uncertainty
• FY 2004 FY 2006 budgets and projects
• Plan for the future with clear priorities
• Integrated Plan development

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University Budgets and Planning
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Actual FY2004 Budget Outcome

• Trustee Approved Outcome -5.6M
• Changes from October Budget
• Net Tuition Fees 3.1M increase
• Sponsored Research/Gifts 2.9M increase
• Endowment Distribution 5.6M
  increase
• Other Income 0.5M decrease
• Sub-Total Revenue Change 11.1M
  increase
• Salaries Benefits 1.9M increase
• Sponsored Research/Gifts 2.8M increase
• Operating Expenses/Capital 0.4M increase
• Sub-Total Expense Change 5.1M increase
• Net Change 6.0M increase
• Actual Outcome 0.4M

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Adopted FY2005 Budget (M)

• Projected Outcome 1.0M
• Changes from March Budget
• Revenue changes
• Net Tuition Fees 2.2M increase
• Budget-Relieving Gifts 0.8M decrease
• Other Income 0.8M decrease
• Expense changes
• Library Research Administration
  0.6M increase
• Utilities, Fringe Benefits, Student Dining
  1.0M increase
• Total Change from March Budget 1.0M
  decrease
• Revised Outcome 0.0M

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FY 2005 Budget Impact of Endowment Performance

• Projected Endowment Return 7 -5
  -10
• Projected Budget Outcome 0.0M -4.7M
  -7.4M

Budget Assumption
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FY 2005 and FY 2006 Planning Assumptions

• FY 2005 FY 2006
• Undergraduate Enrollment (FTE) 3,185
  3,125
• Tuition Room and Board 4 TBD
• Undergraduate Discount Rate 34 TBD
• Endowment Draw 5 5
• Budget Relieving Gifts 8.0M
  7.7M
• Faculty Staff Salary Pool 3 TBD
• Contracts 3 TBD
• Utilities 5 TBD
• Health Benefits (FY 2004 _at_ 11) 9.5
  10
• Outcome Balanced TBD

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Endowment
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Endowment Performance, Spending and Inflation
(periods ending June 30)

• 1-Year 5-Year 10-Year
• Return 15.6 5.4 10.4
• Less
• Spending 4.7 6.1 7.2
• Inflation 2.0 2.5 3.0
• Real Gain/(Loss) 8.9 (3.2) 0.2

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Business Practices and Risk Management
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Business Practices and Risk Management

• External environment
• Sarbanes Oxley Act (SOX)
• Non-profit version
• Trustee mandate to strengthen business and risk
  management
• Impact to Brandeis community

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Trustee Mandate to Improve Business Practices and
Risk Management

• Issuance of Business Conduct Policy last fall
• Two revisions to Business Conduct Policy
• Confidential Complaint Policy (10/18/04)
• Record Retention Policy (in process)
• Training sessions on Business Conduct Policy to
  begin spring 2005
• Review and revision of other University Policies
• Adopt Enterprise Risk Management

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Impact to Brandeis Community

• Business Conduct Policy
• Updated Policy and Procedures
• Enterprise Risk Management

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Capital Projects
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Major Projects Completed FY 1995 FY 2004
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Infrastructure Renewal ProjectPhase 1 Budget and
Expenditure Summary
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Residence Halls Fire Safety
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Steam Network
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Electric Network
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Water Network
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Roof Replacement/Repair
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Roadways and Pedestrian Safety T-Lot
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Classroom Improvements Shiffman 216
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Classroom Improvements Olin Sang 116
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Schneider Building, Heller SchoolSchematic
Design and Site Plan
N
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Schneider Building Architects Rendering
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Usdan Student Center Reuse Phase 1
Level 2
Student Financial Services
One-Stop Center
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Usdan Student Center Reuse Phase 1Future Home
of One-Stop Services Central Area
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Usdan Student Center Reuse Phase 1
Level 1
Usdan Level 1
New International Lounge
Office of Residence Life
Usdan Level 2
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Usdan Student Center Reuse Phase 1Future Home
of Office of Residence Life
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Edmond J. Safra Center for the Fine Arts

• Polshek Partnership engaged as programming
  consultant
• Extensive experience in master planning
• Great depth of experience in planning and
  designing facilities for higher education,
  museums, and fine and performing arts
• Experience with three renovations of buildings
  designed by Max Abramovitz
• Programming expected to be complete by end of
  March 2005.

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Science Center

• High-priority element of Integrated plan
• Planning discussions initiated
• Provost and Dean consulting with faculty
• Vision for sciences to be developed
• Provides foundation for facilities planning

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Information Technology
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Information Technology ServicesAccomplishments,Go
al and Next Steps

• Accomplishments since 1999
• Established basic infrastructure (the utility)
• Network
• Systems, including PeopleSoft and telephone
• Storefronts to serve users (help desks,
  information commons, desktop refresh program)
• Goal
• Promote successful learning environments
• Next steps develop IT master plan

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Conclusion

• Operate within new and changing regulatory
  environment
• University much stronger financially and
  physically than in FY 1995
• Trustees require us to live within our means
• External pressures create uncertainty
• Plan for the future with clear priorities
• Integrated Plan

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• Questions Answers

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Brandeis Web Pages

• Executive Vice President/Chief Operating Officer
  (www.brandeis.edu/evpcoo/)
• Budget (www.brandeis.edu/budgetandplanning/)
• Procurement Services (www.brandeis.edu/offices/pro
  curement/)
• Business Conduct Policy (www.brandeis.edu/evpcoo/)
  
• Controller (www.brandeis.edu/controller/)
• Facilities Services (www.brandeis.edu/facilities/)
  
• Human Resources (www.brandeis.edu/humanresources/)
  
• Affirmative Action (www.brandeis.edu/departments/a
  ffirmaction/)
• ITS (www.brandeis.edu/its/)
• Major Capital Projects (www.brandeis.edu/capitalpr
  ojects/)
• Heller (www.heller.brandeis.edu/welcome/about_new_
  building.asp)
• PeopleSoft/PEAK (www.brandeis.edu/projects/peak/fi
  nancials/)
• Public Safety (www.brandeis.edu/departments/public
  _safety/)