the university of tennessee board ... - ut board of trustees · ii. roll call iii. welcome and...

2020 Winter Meeting Board of Trustees - Agenda

THE UNIVERSITY OF TENNESSEEBOARD OF TRUSTEES_____________________________________________________________________________________________________

2020 WINTER MEETING OF THE BOARD OF TRUSTEES

1:30 p.m. EST Tennessee RoomWednesday UTC University CenterFebruary 19, 2020 Chattanooga, Tennessee

AGENDAI. Call to Order and Invocation

II. Roll Call

III. Welcome and Opening Remarks of the Chair

IV. Honorary Resolution: James (Ron) Maples —Action....................................................................... Tab 1

V. Requests to Address the Board [if any not heard in a committee]

VI. Review of Lecturer Compensation Analysis—Information ............................................................. Tab 2

VII. Update on UTIA/UTK Reunification—Information

VIII. Appointment of Mark Paganelli as Treasurer —Action ................................................................... Tab 3

IX. Committee Reports:

Report and Recommendations of the Finance and Administration Committee

A. Revised FY 2019-20 Operating Budget—Action/Roll-Call Vote ............................................... Tab 4

B. FY 2020-21 Tuition and Fees for UT Health Science Center—Action/Roll-Call Vote............ Tab 5

Report of the Executive Committee

A. Amendments to the Bylaws —Action/Roll-Call Vote ................................................................ Tab 6

X. Annual Performance Review of Interim President Boyd—Action.................................................. Tab 7

XI. President’s Address

1

2020 Winter Meeting Board of Trustees - Agenda

THE UNIVERSITY OF TENNESSEEBOARD OF TRUSTEES_____________________________________________________________________________________________________

Note concerning items XII.C and XII.D: The Bylaws of the Board provide that any item unanimously approved by a committee that is meeting in conjunction with a meeting of the Board will be placed on the consent agenda of the Board meeting. Therefore, if any item listed under XII.C and XII.D is not unanimously approved in committee, the item will be moved to the regular agenda of the Board. Further, any Trustee may request that an item on the consent agenda be moved to the regular agenda even if unanimously approved in committee.

XII. Consent Agenda—Action...................................................................................................................... Tab 8

A. Minutes of the Last Meeting......................................................................................................... Tab 8.1

B. Ratification of Corrected 2019 Annual Report to the General Assembly.............................. Tab 8.2

C. Items from the Education, Research, and Service Committee ................................................ Tab 8.3

1. 2020 Institutional Mission Profile Statements2. Proposed Department Name Chance, Haslam College of Business, UTK3. Authorization for Conferral of Degrees, 2020 Spring Semester4. Grant of Tenure upon Initial Appointment, UTK5. New Academic Programs:

∑ Bachelor of Science Degree in Education, Deaf Studies Major, American Sign Language Concentration, UTK

∑ Master of Legal Studies, UTK6. Proposed Faculty Handbook Revision, UTK

D. Items from the Finance and Administration Committee......................................................... Tab 8.4

1. UTHSC Long-Range Master Plan2. Distribution of Corpus from Robert L. Barksdale Men’s Tennis Program

Endowment, UTK3. Knoxville Utilities Board Gas Line Easement, UTK

XIII. Other Business

[Note: Under the Bylaws of the Board, items not appearing on the agenda may be considered only upon an affirmative vote representing a majority of the total voting membership of the Board. Other business necessary to come before the Board at this meeting should be brought to the Board Secretary’s attention before the meeting.]

XIV. Closing Remarks

XV. Adjournment

2

2020 Winter Meeting Board of Trustees - Honorary Resolution: James (Ron) Maples

The University of TennesseeBoard of Trustees

Resolution in Honor of UT Treasurer James (Ron) Maples February 19, 2020

WHEREAS, James (Ron) Maples earned a bachelor’s degree in accounting from University of Tennessee, Knoxville, in 1974, and then obtained the designations of certified public accountant in 1979 and certified internal auditor in 1982;

WHEREAS, he began working as a staff auditor in internal audit and rose to the department’s director; and

WHEREAS, he served three years as bursar for the University of Tennessee, Knoxville, before beginning a 26-year career in the comptroller’s office, of which he was named controller in 1990; and

WHEREAS, in 2010, he became part of the chief financial officer’s team, overseeing the UT System budget; and

WHEREAS, he was named interim treasurer and chief financial officer in 2016; and

WHEREAS, he was appointed as treasurer in 2017; and

WHEREAS, he was a member of: the UT-Battelle bid team in 2000 that won the U.S. Department of Energy’s contract to manage the Oak Ridge National Laboratory; the 2001 IRIS/SAP project team that implemented the University’s enterprise resource planning system; and the 2010 presidential search committee; and

WHEREAS, he served the University of Tennessee for 42 years; and

WHEREAS, he has been the University’s primary representative to the Council on Governmental Relations since 1990 and served on its board from 2008 to 2014, including serving as its treasurer from 2010 to 2014 and again from 2016 to 2019; and

WHEREAS, he is a past president of the East Tennessee Chapter of the Institute of Internal Auditors and a past board member of the UT Federal Credit Union; and

NOW, THEREFORE, BE IT RESOLVED that the University of Tennessee Board of Trustees, meeting in Chattanooga, Tennessee, on February 19, 2020, hereby commends James (Ron) Maples for his distinguished and invaluable service to the University of Tennessee.

3

2020 Winter Meeting Board of Trustees - Review of Lecturer Compensation Analysis

AGENDA ITEM SUMMARY

Meeting Date: February 19, 2020

Item: Report on Full Time Lecturer Compensation

Type: Information

Presenter: David Miller, Senior Vice President and Chief Financial Officer

The University of Tennessee campuses rely on dedicated lecturers for the delivery of instruction to students. In response to questions raised by the UT lecturers about compensation, the attached report compares UT lecturer’s salaries to peer institutions, aspirational institutions and other public universities in Tennessee.

Appendix A provides the number of full-time lecturers by campus and college within a campus for fall 2019. The salary data shows the minimum, maximum, average, and median for each college and campus. The UT System totals show that of 554 full-time lecturers the average salary is $58,099 and the median is $51,354. Lecturers comprise over 90 percent of UT adjunct faculty. Other universities have a more balance mix of lecturers and instructors.

FY 2018 Comparative Data

Appendix B provides detailed comparisons for UTK lecturers and instructors compared to peer, aspirational, and SEC institutions. Of the total adjunct faculty UTK was slightly ahead of peer and SEC universities and below aspirational universities.

Appendix C provides detailed comparisons for UTC lecturers and instructors compared to peer, aspirational, and other Tennessee universities (locally-governed institutions). For total adjunct faculty the UTC average was above all three groups.

Appendix D also provides detailed comparisons for UTM lecturers and instructors compared to peer, aspirational, and other Tennessee universities. For the total adjunct faculty the UTM average of was at or above all three groups.

4


Fall 2019 UT Full-Time Paid Lecturer* Salaries

Campus/CollegeNo. of Lecturers

Lecturer Minimum Salary

Lecturer Maximum Salary

Lecturer Average Salary

Lecturer Median Salary

UTK 334 33,000 175,999 61,703 52,520 College of Arts and Sciences 213 33,000 120,632 50,861 48,266 Haslam College of Business 54 60,000 175,999 102,568 93,298 Coll of Communication & Info 19 33,546 66,511 43,601 40,000 Tickle College of Engineering 16 75,000 103,728 86,094 82,253 Herbert College of Agriculture 10 50,142 80,341 62,356 61,814 Coll of Educ, Hlth, & Hmn Sci 8 50,682 93,803 67,671 68,030 College of Architecture & Design 13 46,000 89,365 57,027 50,000

UTC 133 35,811 208,590 54,043 49,438 College of Arts & Sci 83 35,811 66,120 46,232 44,448 Coll of Health, Educ, and Prof Std 28 42,500 99,566 62,390 60,172 Coll of Business Admin 15 46,933 208,590 80,082 70,163 Coll of Engineering &Comp Sci 7 51,000 57,222 54,408 55,040

UTM 87 30,000 100,650 50,406 50,650 Coll of Educ & Behav Science 21 49,269 100,650 54,713 51,782 Division of Academic Affairs 14 41,012 57,527 50,568 52,332 Coll of Humanities & Fine Arts 22 37,697 55,370 44,094 43,213 Coll of Agric & Appl Science 12 30,000 60,356 45,097 46,423 Coll of Business & Global Affr 6 57,527 71,454 60,801 64,539 Engineering & Natural Sciences 12 37,946 73,183 51,792 48,929

UT System Total 554 30,000 208,590 58,099 51,354

Source: IRIS BW; Nov 20 2019 Prepared by: UT System Office of Institutional Research; January 10, 2020*Only Lecturers reported, as they account for over 90 percent of all UT System Adjunct Faculty (i.e. 554 Lecturers to 48 Instructors, System-wide).

Appendix A

5


$57

$62 $57

$64

$56 $56

$73

$59$63$62

$54 $55

$10

$20

$30

$40

$50

$60

$70

$80

Lecturers Instructors Total Adjuncts (All Non Ten-Track)

Thou

sand

s

2018 UTK Peer Adjunct* Faculty Average Salaries**

UTK Peer Aspirational SEC

(Count of Faculty at base of column. Actual count for UTK, Average for Peer Groups. )

Source: IPEDS Prepared by: University of Tennessee Office of Institutional Research; January 10, 2020*Adjunct faculty include: Lecturers, Instructors, and all other Non-Rank, Non-Tenure Track faculty**Average salaries equated to a 9-month contract

321 33 356 249150128 59 314186 308187122

Appendix B

6


$51 $52 $51

$46 $49 $47 $47

$53 $50

$45 $47

$44

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55

$60


Thou

sand

s

2018 UTC Peer Full-Time Adjunct* Faculty Average Salaries**

UTC Peer Aspirational LGI

(Count of Faculty at base of column. Actual count for UTC, Average for Peer Groups. )


120 116 161 10811 83 53 58109 53 141 89

Appendix C

7


$48

$53

$48 $45 $46

$45

$49 $50 $48

$45 $47

$44

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55


Thou

sand

s

2018 UTM Peer Full-Time Adjunct* Faculty Average Salaries**

UTM Peer Aspirational LGI

(Count of Faculty at base of column. Actual count for UTM, Average for Peer Groups. )


72 7 79 796589 79 11130 1085858

Appendix D

8

2020 Winter Meeting Board of Trustees - Appointment of Mark Paganelli as Treasurer

AGENDA ITEM SUMMARY


Item: Appointment, Compensation, and other Terms of Employment of the Treasurer.

Type: Action

Presenter: Randy Boyd, Interim President

Pursuant to Section 6.6 (c) of the University’s Bylaws, the President may recommend the Chief Financial Officer to serve concurrently as Treasurer. Alternatively, if the office is to be held by an individual other than the Chief Financial Officer, the Chief Financial Officer may appoint an individual to serve as Treasurer in an interim or acting capacity. When the Chief Financial Officer deems it appropriate to proceed to fill the vacancy, the Chief Financial Officer shall identify a candidate to be recommended to the Board.

Senior Vice President and Chief Financial Officer David Miller recommends the appointment of Mark Paganelli, who has been serving as Interim Treasurer, to serve asTreasurer of the University. The recommended compensation and other terms of employment are included in the accompanying offer letter, which has been accepted by Mr. Paganelli .

As authorized by the Bylaws of the Board, the Chair has designated this item for action by the Board without prior review and recommendation by the Executive Committee.

The Chair will call for approval of the Resolution:

Resolved: The Board of Trustees approves the appointment of Mark Paganelli as Treasurer of the University, effective February 19, 2020, with the compensation and other terms of employment as presented in the meeting materials.

9

r THE UN IVERSITY OF TENNESSEE SYSTEM

FINA NCE AN D AD MINSTRATI ON

February 3, 2020

M r. Mark A. Paganell i Interim TreasurerOffice of Finance The Universit•f of T en nessee 7 llC Andy Holt T owar 1331 Circle Park Drive Knoxville, TN 37996 -0174

Dear Mark:

l. MILLER ;Jr)<:}

In accordance with our discussion, I am appoint ing you Treas urer effective february 19, 2020. The appointment of ·1 reasure r 1s made by the Senior V ice President and Chief Financial Offi cer of the Un iversity of Tennessee, and is approved by the Board of Trustees.

Your base salary as TreasJrer will be $20,833 per month (annua lized salary o f $250,000).

Please ind icate your acceptance or this appointment byby signing and returning the lette r to me.

Thank you again for you r many years of ded ici ted se rvice to the University and accepting this new challenge.

Sincerely,

Cc: Hu man Resources

Date: 2/4/2020

• · • •


10


Mark Paganelli, CPA, MBA

EXPERIENCE: University of Tennessee – System Administration Finance Office12/19 – Present Interim Treasurer

Assumed additional oversight responsibilities for the controller’s office, cash management, merchant services and endowment accounting.

7/18 - 12/19 Associate Vice President, Financial Administration8/10 – 7/18 Executive Director for Finance and Administration

Responsible for the oversight of six administrative offices within the University of Tennessee System. The areas of responsibility include payroll, purchasing, accounts payable, retirement services, risk management, and collegiate licensing. Approximately 60 employees staff these offices and they serve all campuses and institutes in the University of Tennessee System. The System is comprised of five campuses including a health science center in Memphis, the flagship campus in Knoxville and campuses in Chattanooga, Martin and Tullahoma. The University has an operating budget of $2billion, over $2 billion in assets, 45,000 students and over 15,000 employees.

Significant accomplishments in these areas include:∑ Implemented a vendor portal, which requires vendors to enter banking and tax

information that is then validated by a third party. This reduces the university’s exposure to fraud attempts.

∑ Automated travel reimbursement process resulting in faster reimbursement for 15,000 travel reimbursement requests annually.

∑ Implemented E-payables and ACH payments options for vendors. This resulted in better cash management, a revenue stream and faster payments to vendors.

∑ Implemented an electronic procurement system. Allows departments to procure items in an Amazon type environment. Allows greater visibility of supplier catalogs, better analysis of items procured and better supplier/customer relationships.

∑ Changed the vendor/bidder registration process to improve compliance with IRS regulations and allow a self-service bidder registration process.

∑ Implemented several system-wide policies including payroll, contracting and accounts payable and several modifications to the travel policy.

∑ Implemented E-invoicing where the system does a three-way match based on quantity and price ordered, received and invoiced. Eliminates paper invoices, prevents duplicate invoices, lost invoices and manual entry of invoices.

∑ Implemented career ladders to improve employee development. ∑ Automated the petty cash reimbursement process, contract signature process, moving

allowance reimbursement process, annual conflict of interest disclosure process. ∑ Implemented an electronic bidding process that allows bid invitation to be distributed

electronically and bids to be returned and tabulated electronically. ∑ Served on the State of Tennessee Insurance Committee from June 2012 through June

2015. Responsible for the oversight of the health, dental, vision and life insurance policies.

11


∑ Treasurer for the University of Tennessee Research Foundation, which is responsible for the commercialization of research conducted by University employees.

∑ Outsourced the University’s flexible benefits program, resulting in the ability to use a credit card, enroll on-line, submit claims electronically, receive e-mail notifications and obtain real time reports.

6/99 – 8/10 Audit and Consulting Services – Executive DirectorResponsible for the internal audit function for the entire University of Tennessee System. This included 17 auditors located on three campuses, two support personnel, an editor and student workers. The office performed numerous reviews each yearincluding operational, compliance, investigative, financial, procurement cards, and technology audits. The office also assists management with special requests and provides training related on internal controls and other relevant topics.

Significant achievements by the office under my supervision include:

∑ Establishment of a System wide compliance office. Revised the code of conduct, created an on-line risk assessment tool and trained compliance officers on their responsibilities. Also, identified areas of non-compliance and high risk for further action.

∑ Primary staff person for the Audit Committee of the Board of Trustees, which was created in 2003. Assisted committee with the creation of its charter and agendas for meetings.

∑ Prepare and distribute training materials throughout the University, including a business management guide, a fraud-reporting brochure, and best practices guide for the accounting system.

∑ Converted the office from a paper work paper process and time keeping system to an electronic process to improve productivity and accountability.

∑ Established a procurement card monitoring system using auditing software to provide timely review of data for policy violations and indicators of possible abuse.

∑ Assisted the University with its implementation of SAP financial and human resources software including rewriting fiscal policy to address the new environment.

5/92 – 6/99 Audit and Consulting Services – Auditor, Senior Auditor, ManagerConducted all types of audits throughout the University system with increasing levels of complexity and responsibility.

9/97 – 12/98 Pellissippi State Community CollegeAdjunct Accounting ProfessorTaught an accounting class in the evening for three semesters.

4/86 – 5/92 Comptroller of the Treasury, Division of State Audit- Special InvestigationsAuditor, Senior Auditor, SupervisorInvestigated allegations of fraud within state agencies, including higher education institutions and later supervised activities of other investigators.

12


5/82 – 5/86 United States Marine Corps ReserveSergeantSupervised a fire team in infantry unit. Honorably discharged.

EDUCATION: University of North Alabama, School of BusinessBachelor of Science – Accounting 1985

University of Tennessee at Chattanooga, School of BusinessMaster of Business Administration – Finance, 1997

Certified Public Accountant – State of Tennessee 1991

ASSOCIATIONS: Past president – East Tennessee Association of Internal AuditorsPast President – Association of College and University AuditorsMade numerous presentations to these and other associations on fraud, internal controls and risk assessments.

13

2020 Winter Meeting Board of Trustees - Revised FY 2019-20 Operating Budget - Action/Roll-Call Vote

AGENDA ITEM SUMMARY


Item: Revised FY 2019-20 Operating Budget

Type: Action

Presenter: Bill Rhodes, Chair of the Finance and Administration Committee

The University develops a revised operating budget proposal each fiscal year to adjust for changes that occur after the original budget is adopted in June. The primary revisions made each year include updating beginning net asset balances to reflect actual rather than projected beginning balances; state appropriations adjustments made by the state Department of Finance and Administration; and mid-year adjustments to enrollment projections, operating plans, organizational structure, revenue projections, and fixed costs.

The revised Unrestricted Educational and General (E&G) Operating Budget is in the amount of $1,550,545,410, an increase of 0.5% over the original budget, and the revised Unrestricted Auxiliary Operating Budget is in the amount of $273,660,538, an insignificant change of $4,218 from the original budget.

The revised FY 2019-20 Operating Budget was presented to the Finance and Administration Committee for its consideration. Detailed information on the revised operating budget follows this summary.

Board Action

The Chair will call for a motion to recommend adoption of the proposed Resolution by the Board of Trustees.

14


_____________________________(*) Number will be inserted after adoption.

THE UNIVERSITY OF TENNESSEEBOARD OF TRUSTEES

Resolution 00__-2020*

Resolution to Approve theFY 2019-20 Revised Operating Budget

WHEREAS, by state law, the Board of Trustees must approve an annual operating budget for the University; and

WHEREAS, the Board approved the FY 2019-20 operating budget on June 21, 2019; and

WHEREAS, the operating budget must be revised during the year to update revenue and expenditure projections for the remainder of the fiscal year, taking into consideration final fall enrollments (which are estimated when the original budget is prepared), the impact of the prior year’s activities carried forward into the current year, and adjustments in state appropriations occurring since the budget was approved on June 21, 2019; and

WHEREAS, the 2019-20 Revised Operating Budget includes adjustments allocating revisions to budgeted revenues and carry forward of unexpended non-recurring funds from 2018-19; and

WHEREAS, further adjustments may be required if material changes in revenues or expenditures arise during the remainder of FY 2019-20; and

WHEREAS, the FY 2019-20 Revised Budgets for Unrestricted Education and General (E&G) and Auxiliary Enterprises are balanced, and within available resources and comply with all applicable policies and guidelines;

NOW, THEREFORE, BE IT RESOLVED:

1. The FY 2019-20 Revised Unrestricted, Educational and General Operating Budget in the amount of $1,550,545,410 and the Revised Unrestricted Auxiliary Operating Budget in the amount of $273,660,538 are hereby approved with the understanding that if the General Assembly or the Department of Finance and Administrationfurther alters the FY 2019-20 appropriations, or if changes in estimated resources require, the budget shall be modified accordingly so expenditures will not exceed available resources.

15


2. Any additional general salary increases that exceed the FY 2019-20 salary and wage plan may only be granted upon approval by the Board of Trustees.

3. Any remaining balance of unrestricted net assets may be considered as a reserve for contingencies to be used for:

a. Employing additional staff where enrollments, operational plans, or reorganization requirements warrant;

b. Modifying departmental operating budgets where changing conditions during the year require funding adjustments;

c. Funding to make salary adjustments for personnel as may be necessary during the year in keeping with state and university salary guidelines;

d. Improving physical facilities for academic and research departments as opportunities arise;

e. Mandated cost increases; and

f. State impoundment of funds or appropriations rescission during the budget year.

16


Revised Budget

Document FY 2019 – 2020

17


THE UNIVERSITY of TENNESSEE

Knoxville Knoxville

Space Institute

Chattanooga

Martin

Health Science Center

Institute of Agriculture AgResearch Extension

College of Veterinary Medicine

Institute for Public Service Institute for Public Service

Municipal Technical Advisory Service County Technical Assistance Service

Tennessee Language Center

System Administration

18


FY2019-20 REVISED BUDGET

THE UNIVERSITY OF TENNESSEE

Contents

MESSAGE FROM THE CFO A-2

OVERVIEW A-3

UNRESTRICTED E&G REVENUES A-4

UNRESTRICTED E&G EXPENDITURES A-7

AUXILIARY ENTERPRISES A-10

RESTRICTED FUNDS A-11

UNRESTRICTED NET ASSETS A-13

BOARD OF TRUSTEES RESOLUTION A-15 ______________________________________________________________________________

SUPPORTING BUDGET SCHEDULES B-1

A-1

19


Message from the CFO

The FY 2019-20 revised operating budget reflects operating plans and financial projections as of October 31, 2019. The University develops a revised budget each fiscal year to adjust to the following changes that occur during the year after the original budget is adopted in June: 1. The university’s original budget is

developed before the end of theprevious fiscal year and usesbudgeted net assets as its startingpoint. The revised budget usesactual net assets as its startingpoint. In most years, this change innet assets is offset by an increase tonon-recurring expenditure budgets.

2. State appropriations are adjusted inSeptember, requiring minoradjustments in most years.

3. Other adjustments may be neededif there are material changes tooperating plans, organizationalstructure, revenue projections, orfixed costs.

Revised revenue budgets total $2.55 billion, a 2.0% increase over the original budget. Revised expense budgets total $2.55 billion, a 2.1% increase. These revisions include all current funds: unrestricted educational and general (E&G) funds, restricted E&G funds, and auxiliary funds. Most of the 2.0% increase are adjustments to miscellaneous unrestricted E&G revenue.

Unrestricted E&G funds finance the university’s core operations and are the primary focus of this budget proposal. Adjustments totaling $7.2 million (0.5%) have been added to our unrestricted E&G revenue budgets

since July 1, 2019. Most of the increase is due to revised expectations for tuition and fee revenue from stronger than expected enrollments.

Recurring unrestricted E&G expenditures increased by $7.2 million (0.5%), indicating no material changes to recurring programs and operations. Total unrestricted E&G expenditure budgets are up $95.3 million (6.2%), reflecting carry-overs of unspent non-recurring funds from FY 2018-19. Campuses and institutes are using these funds for projects such as classroom technology upgrades, energy efficiency projects, faculty start-up packages, and critical maintenance needs; prudent one-time investments that increase capacity and improve long-term effectiveness and efficiency. Unspent non-recurring funds will be carried forward to the next fiscal year and presented to the Board in the 2020-21 revised budget proposal.

Each campus and institute implemented the salary plans described in the FY 2019-20 Proposed Budget Document approved by the Board of Trustees last June.

Revenue and expenditure data for each operating unit is provided in this budget document. Also included is information on athletics and auxiliary budgets. A separate publication containing detailed supporting schedules is available in electronic format.

Respectfully,

David L. Miller Chief Financial Officer

A-2

20



Overview

The University of Tennessee FY 2019-20 revised budget revenues total $2.55 billion. This is a 2.0% increase from the FY 2019-20 original budget. Revenues for current operations are tracked in three major fund groups: unrestricted educational and general (E&G) funds ($1.55 billion), restricted E&G funds ($723 million), and in auxiliary funds ($274 million).

Unrestricted E&G funds support the core operations of the university. They are funded primarily through tuition and student fees, state appropriations, and other sources including grants and contracts, federal and local appropriations, sales and services, and investment income.

Restricted funds must be used in accordance with purposes established by an external party; primarily grants, contracts, gifts and endowments. These funds are the major revenue sources for research, scholarships, and fellowships.

Auxiliaries are self-supporting enterprises which furnish services to students, faculty, and staff such as housing, bookstores, food services and UTK athletics. They complement the core operations of each campus and are a vital component in student life and campus culture.

TOTAL REVENUE ($ millions)

Revenue Source FY2019-20

Original FY2019-20

Revised Change Unrestricted E&G $ 1,543.3 $ 1,550.5 $ 7.2 0.5 % Restricted E&G 679.6 723.4 43.8 6.4 % Auxiliaries 273.9 273.9 - -

Total $ 2,496.8 $ 2,547.8 $ 51.0 2.0% Amounts may not add due to rounding.

The adjustments to unrestricted E&G and auxiliary budgets are immaterial. Changes of this magnitude are typical for the annual revised budget and reflect no material changes to plans or operations for FY 2019-20. The relatively large 6.4% increase in restricted E&G revenue budgets is due primarily to more favorable expectations for revenues from Health Science Center contracts funded by private entities.

Unrestricted E&G Revenues FY 2011-12 $1.08B FY 2012-13 $1.14B FY 2013-14 $1.20B FY 2014-15 $1.26B FY 2015-16 $1.33B FY 2016-17 $1.39B FY 2017-18 $1.47B FY 2018-19 $1.53B FY 2019-20 $1.55B

FY 2019-20 Quick Facts

Enrollment (Fall 2019) 51,582

Capital Outlay $ 81.5M

Capital Maintenance $ 29.4M

Total Current Funds

Revenues $2.55B

State Appropriations $656.4M

% of Revenues 26%

Tuition & Fees $739.0M

% of Revenues 29%

Positions 14,289

Unrestricted E&G Funds Revenues $1.55B State Appropriations $640.1M % of Revenues 41% Tuition & Fees $739.0M % of Revenues 48% Positions 10,710

A-3

21



Unrestricted E&G Revenues

Unrestricted E&G Revenue Summary

Revenue Source FY 2019-20

Original FY 2019-20

Revised Change Tuition & Fees $737,237,524 $739,049,538 $ 1,812,014 0.2 % State Appropriations 637,913,152 640,100,952 2,187,800 0.3 % Other Revenues 168,155,582 171,394,920 3,239,338 2.0 %

Total E&G Revenues $ 1,543,306,258 $ 1,550,545,410 $ 7,239,152 0.5 %

FY 2019-20 revised budget unrestricted E&G revenues increased slightly (0.5%) from the original budget. Tuition and fee revenue budgets were adjusted up by 0.2%, state appropriation budgets increased 0.3%, and expectations for other unrestricted E&G revenues are up 2.0%. More detail on each of these three categories is presented in the following pages.

Trends in these major revenue streams are shown below. The relative shares of each have remained stable in recent years. The uptick in state appropriations from FY19 to FY20 is due in large part to $10 million of non-recurring state funding for campus safety and security upgrades.

$- $100 $200 $300 $400 $500 $600 $700 $800

2015 2016 2017 2018 2019 2020 RevisedBudget

Unrestricted E&G Revenue History($ millions)

Tuition and Fees State Appropriations Other

48%49% 49%

48% 49%

38% 38%39% 39%

41%

13% 13% 13% 12% 11%

49%38%

13%

A-4

22



Unrestricted E&G Revenues

Tuition and Fee Revenues

Fee Type FY 2019-20

Original FY 2019-20

Revised Change

Maintenance Fees $516,310,641 $517,343,162 $1,032,521 0.2 %

Non-Resident Tuition 78,094,412 78,054,957 (39,455) (0.1) %

Program and Service Fees 75,914,946 76,087,201 172,255 0.2 %

Extension Enrollment Fees 7,469,731 7,483,393 13,662 0.2 %

Other Student Fees 59,447,794 60,080,825 633,031 1.1 %

Total Tuition and Fees $737,237,524 $739,049,538 $1,812,014 0.2 %

The primary source of tuition and fee revenues are maintenance fees, commonly referred to as in-state tuition. The maintenance fee is paid by all students, including out-of-state students. Non-resident tuition is a differential paid only by out-of-state students, not the full amount paid by out-of-state students. The term “out-of-state tuition” typically refers to the maintenance fee plus non-resident tuition. Programs and services fees are mandatory fees paid by all students and include fees for student activities, health services, debt service, capital improvements, student counseling, and other programs. Extension enrollment fees are for non-credit personal and professional development courses. Examples of other student fees include technology fees, facilities fees, library fees, differential tuition, lab fees, and course fees.

Each campus made minor adjustments to tuition and fee revenue budgets once actual Fall 2019 enrollments became known. There are no material changes from the original budget approved by the Board of Trustees at the June 2019 annual meeting.

$0

$100

$200

$300

$400

$500

$600

2014 2015 2016 2017 2018 2019 2020 RevisedBudget

Tuition & Fee Revenue History($ millions)

Maintenance Fee Other Student Fees Non-Resident Tuition

73%

16%

72%73%

72% 71% 70% 70%

16% 17% 17% 18%

11% 11% 11% 11%17% 20%

12% 12% 10%

A-5

23



State Appropriations Unrestricted Restricted Total

Original Recurring Appropriations $ 626,869,552 $ 16,246,128 $ 643,115,680 Recurring Mid-Year Changes:

OPEB adjustments 935,300 935,300 TCRS legacy rate change 967,700 967,700 Claims/property insurance premiums 84,800 84,800 Smoky Mountain Fair program (Extension) 10,000 10,000 UT Martin Selmer Center 190,000 190,000 Specialized unit operating increase 7,687 7,687 Total Recurring Change $ 2,187,800 $ 7,687 $ 2,195,487 Revised Recurring Appropriations $ 629,057,352 $ 16,253,815 $ 645,311,167

Non-Recurring (no change) 11,043,600 11,043,600

Total Revised Budget Appropriations $ 640,100,952 $ 16,253,815 $ 656,354,767

State appropriations increased 0.3% from the original budget. Recurring appropriations increased $2.2 million while non-recurring remained unchanged. The state increased appropriations to account for minor cost increases in state-managed benefits and insurance programs. Program funding was added for a UT Extension grant to the Smoky Mountain 4-H and FFA Fair and extended campus operations at the UT Martin Selmer Center.

Other Unrestricted Revenues

Revenue Source FY 2019-20

Original FY 2019-20

Revised Change Grants & Contracts $ 44,239,633 $43,133,430 $ 1,893,797 4.3 % Sales & Services 59,785,352 60,912,037 1,126,685 1.9 % Miscellaneous Sources 64,130,597 64,349,453 218,856 .3 % Total Other Revenues $168,155,582 $171,394,920 $ 3,239,338 1.9%

Unrestricted E&G grant and contract revenues are the portion of payments from grant and contract sponsors allocated to cover general facilities and administration costs incurred to support grant and contract programs. Most of the 4.3% increase is related to improved expectations for privately funded contracts at the Health Science Center. Sales and services revenues are generated by operations that provide fee-based services to the public such as the Veterinary Medical Center, Health Science Center clinics, 4-H camps, theaters, and sports camps. Miscellaneous sources include interest earnings, conference revenues, federal appropriations, local appropriations, Oak Ridge National Laboratory (ORNL) management fees, licensing revenues, and unrestricted gifts and endowments. There are only minor adjustment to these budget categories.

A-6

24



Unrestricted E&G Expenditures

Budgeted expenditures were increased by $95.3 million (6.2%). This increase combines two different kinds of adjustments: changes to recurring expenditure budgets and changes to non-recurring budgets. Mid-year adjustments to recurring expenditure budgets are typically small. (In rare cases, major events may necessitate significant mid-year revisions to recurring budgets.) Most of the 6.2% increase are non-recurring mid-year allocations that do not reflect changes in recurring plans and operations.

Unrestricted E&G Expenditures and Transfers

Functional Area

FY 2019-20 Revised

Recurring

FY 2019-20 Revised

Non-Recurring

FY 2019-20 Revised Total

Instruction $ 580,527,713 $ 27,680,232 $ 608,207,945 Research 115,698,136 40,866 766 156,564,902 Public Service 84,641,965 2,883,852 87,525,817 Academic Support 181,422,816 15,210,441 196,633,057 Student Services 99,930,686 2,479,095 102,409,781 Institutional Support 174,933,640 4,069,408 179,003,048 Operation/Maintenance of Phys. Plant 155,607,067 855,609 156,462,676 Scholarships and Fellowships 132,721,099 1,796,742 134,517,841 Total E&G Expenditures $ 1,525,482,922 $ 95,842,145 $ 1,621,325,067 Transfers 7,356,706 (77,545,059) (70,188,353) Total Expenditures & Transfers $ 1,532,839,628 $18,297,086 $1,551,136,714

Inst

ruct

ion

Res

earc

h

Publ

ic S

ervi

ce

Aca

dem

ic S

uppo

rt

Stud

ent S

ervi

ces

Inst

itutio

nal S

uppo

rt

Ope

r./M

aint

. of P

lant

Scho

lars

hips

/Fel

low

ship

s

$0

$100

$200

$300

$400

$500

$600

$-m

illio

ns

10% 5% 12% 6% 11% 10% 8%38%

A-7

25



Unrestricted E&G Expenditures - Recurring

Mid-year adjustments to recurring expenditure budgets indicate no material changes to recurring plans and operations. Total recurring expenditure budgets are up by $7.2 million, which matches the $7.2 million increase in budgeted revenues. The change analysis below reveals some minor reallocations among categories, most notably a drop of $3.5 million in academic support and increase of $3.7 million in institutionally-funded research. Most of this change is the result of reporting adjustment to reclassify some units in the academic support functional area that are actually involved in research. There are no material changes among the natural classification categories of salaries, benefits, operating, and equipment.

Recurring Unrestricted E&G Expenditures by Function

Functional Area FY 2019-20

Original FY 2019-20

Revised Change Instruction $ 579,683,155 $ 580,527,713 $ 844,558 0.1 % Research 111,953,608 115,698,136 3,744,528 3.3 % Public Service 84,598,574 84,641,965 43,391 0.1 % Academic Support 184,917,165 181,422,616 (3,494,549) (1.9) % Student Services 98,703,604 99,930,686 1,227,082 1.2 % Institutional Support 173,232,063 174,933,640 1,701,577 1.0 % Operation/Maint. of Plant 152,761,274 155,607,067 2,845,793 1.9 % Scholarships and Fellowships 132,471,666 132,721,099 249,433 0.2 % Total E&G Expenditures $1,518,321,109 1,525,482,922 7,161,813 0.5 % Transfers 7,881,724 7,356,706 (525,018) (6.7) % Expenditures & Transfers $1,526,202,833 $1,532,839,628 $ 6,636,795 0.4 %

Recurring Unrestricted E&G Expenditures by Natural Classification

Natural Classification FY 2019-20

Original FY 2019-20

Revised Change Academic Salaries $ 374,947,683 $ 375,696,671 $748,988 0.2 % Non-Academic Salaries 375,437,598 381,217,576 5,779,978 1.5 % Student Employees 8,571,622 8,623,793 52,171 0.6 % Total Salaries 758,956,903 765,538,040 6,581,137 0.9 % Staff Benefits 263,808,307 267,684,699 3,876,392 1.5 % Total Salaries & Benefits 1,022,765,210 1,033,222,739 10,457,529 1.0 % Operating & Equipment 495,555,899 492,260,183 (3,295,716) (0.7 %) Total Expenditures $ 1,518,321,109 $ 1,525,482,922 7,161,813 0.5 %

A-8

26



Unrestricted E&G Expenditures – Non-Recurring

Most campuses and institutes wait until mid-year to allocate non-recurring funds to departmental expenditure budgets. By September, campus and institute budget officers know the final amounts of carry-overs from the previous fiscal year, fall enrollment levels, and adjustments to original state appropriations, giving them greater certainty on how much non-recurring funding is available.

The $88.1 million increase in non-recurring allocations in funded primarily by an offsetting $86.9 million decrease in transfers. The net decrease in transfers represents the amount of reserves available to deans, directors, and department head to either be expended during the current year or carried forward for future needs.

Non-Recurring Unrestricted E&G Expenditures by Function

Functional Area FY 2019-20

Original FY 2019-20

Revised Change Instruction $ 3,968,143 $ 27,680,232 $ 23,712,089 Research 793,669 40,866,766 40,073,097 Public Service 169,000 2,883,852 2,714,582 Academic Support 802,846 15,210,441 14,407,595 Student Services 100,000 2,479,095 2,379,095 Institutional Support 329,467 4,069,408 3,739,941 Operation/Maintenance of Phys. Plant 542,366 855,609 313,243 Scholarships and Fellowships 1,030,300 1,796,742 766,442 Total E&G Expenditures $ 7,735,791 $ 95,842,145 $ 88,106,354 Transfers 9,324,295 (77,545,059) (86,869,354) Expenditures & Transfers $ 17,060,086 $ 18,297,086 $ 1,237,000

The amounts allocated are not necessarily spending plans for the current fiscal year; they make the allocation of one-time funds transparent to campus and institute leadership, college deans, department heads, and unit directors. The majority of these allocations will be carried forward into FY 2020-21 rather than being expended in the current fiscal year.

The large increase in research is typical since a good portion of these funds come from non-recurring facilities and administration recoveries generated in previous years by research grants and contracts. Much of the $40.1 million increase is earmarked for faculty start-up packages, faculty research incentives, bridge funding for grant-funded research units, and upgrades to research labs and equipment. The $23.7 million allocation to instruction is directed to academic units to improve the quality and enhance the capacity of instructional programs. Some of the major components of the $14.4 directed to academic support include libraries, student success centers, online programs, and other academic initiatives.

A-9

27



Auxiliary Enterprises

Auxiliary enterprises complement core campus operations by furnishing services to students, faculty, and staff. Each auxiliary enterprise is self-funded through sales, fees, and private gifts. These stand-alone operations include housing, food services, bookstores, parking, and other miscellaneous operations. It also includes UT Knoxville athletics since it is a self-supporting operation. (The athletic programs at Chattanooga and Martin are included in unrestricted E&G funds.)

These budgets are virtually unchanged compared to July 1. Revised budgets for unrestricted auxiliary revenues increased $4,218, offsetting a $4,218 increase in budgeted expenditures and transfers.

Auxiliary Revenues by Enterprise ($ millions)

$138

$79

$25$15 $13

$3$0

$20$40$60$80

$100$120$140$160

UTKAthletics

Housing Bookstores Parking Food Services Other

A-10

28

Auxiliary Fund Summary Revenues, Expenditures, and

Transfers FY 2019-20

Original FY 2019-20

Revised Change Revenues $ 273,656,320 $ 273,660,538 $ 4,218 - Expenditures 209,045,274 209,224,040 178,766 0.1 % Transfers 64,611,046 64,436,498 (174,548) (0.3 %) Expenditures and Transfers $ 273,656,320 $ 273,660,538 $ 4,218 -



Restricted Funds

Many of the budget tables and schedules in this document include information on restricted fund budgets. This information is not part of the proposed Board resolution. It is presented for information purposes to provide a complete picture of funds available for current operations in 2019-20.

Restricted funds are the largest revenue sources for research and financial aid and play an important role in funding the university’s public service initiatives. Externally funded projects in research, public service, and instruction are vital components of the university’s core mission. They support jobs directly at University of Tennessee campuses and indirectly in surrounding communities; provide partial funding for overhead; develop innovative technologies that improve healthcare, strengthen national security, and drive economic development; provide services to Tennessee citizens, manufacturers, agribusiness, and communities; support graduate education; and enrich undergraduate education through exposure to cutting edge science in the classroom and direct involvement in undergraduate research opportunities. Funding from the federal government, State of Tennessee, gifts, and endowments provide scholarships and fellowships that significantly improve student access and affordability.

Restricted funds must be used for purposes established by an external party and in accordance with the contractual terms and conditions negotiated with the sponsor of each grant and contract and the administrative provisions set by donors for each gift fund and endowment. University administration has limited discretion on the use of restricted funds once a grant, contract, or gift agreement is executed. All proposed grants, contracts, gifts, and endowments are carefully reviewed before any agreement is finalized to ensure that the proposed use of funds, terms, and conditions further the mission of the university; directly or indirectly support and enhance general operations; and conform to all university policies, generally accepted accounting standards, and state and federal regulations.

The information presented for restricted fund budgets are projections for likely revenues and expenditures during the current fiscal year. They are not revenue targets and authorized spending levels set by management. The budget for each grant, contract, gift, and endowment is unique and often applies to time periods that do not coincide with the university’s fiscal year. Budgetary control of these funds is exercised by university administration at the project level. Budgets and financial activity for these funds are tracked in over 11,000 accounts in the university’s official chart of accounts and subject to external audit by federal agencies and the State Comptroller.

The following page includes information on actual restricted fund expenditures for educational and general (E&G) operations in 2018-19. It shows how restricted revenues from each major funding source supported different functions of the university in 2018-19.

A-11

29



FY 2018-19 Restricted E&G Expenditures by Function and Funding Source ($-millions)

Functional Area Priv

ate

Entit

ies

Fede

ral

Gov

ernm

ent

Stat

e/Lo

cal

Gov

ernm

ent

Endo

wm

ent

Inco

me

Gift

s

Stat

e A

ppro

- pr

iatio

ns

Tot

al

%

Instruction $141.5 $4.4 $33.4 $15.6 $5.8 $1.8 $202.7 28.4%

Research 41.8 112.3 18.6 4.4 7.6 14.4 199.0 27.9%

Scholarships/Fellowships 0.4 63.6 96.4 16.4 4.7 - 181.4 25.5%

Public Service 10.9 17.5 39.3 1.1 4.7 .3 73.8 10.4%

Academic Support 32.4 1.0 0.5 6.2 10.0 - 50.2 7.0%

Other 1 - 0.6 0.1 0.4 3.7 0.7 5.5 0.8%

Total $227.1 $199.5 $188.1 $44.2 $36.5 $17.2 $712.6 100.0%

% 31.9% 28.0% 26.4% 6.2% 5.1% 2.4% 100.0% 1 Includes Student Services, Institutional Support, and Operation and Maintenance of Physical Plant

Most of the $202.7 million spent on instruction was not traditional classroom education; nearly all of the $141.5 million of private entity revenue expended for instruction was graduate medical education (GME) funding for Health Science Center interns and residents. Over half of the $199.0 million expended on externally funded research came from the federal government; around 21% was funded by private entities. The largest funding sources for public service sponsored projects were state and local governments (53%), the federal government (24%), and private entities (15%). Most of the $32.4 million from private entities for academic support were mission support payments to the Health Science Center generated by hospital affiliation agreements.

The largest sources of restricted scholarship and fellowship funding are the State of Tennessee, federal government, and endowments. Almost all of the $96.4 million spent on scholarships from state and local governments was state funding from the Tennessee Student Assistance Corporation (TSAC) for the HOPE Lottery Scholarship and other state-funded financial aid. Most of the $63.6 million in federal funding was for need-based financial aid such as Pell grants, federal work study, and Supplemental Educational Opportunity Grants. (The university also funded $125 million of scholarships and fellowships from unrestricted general operating funds in 2018-19, bringing total funding scholarships and fellowship funding in 2018-19 to $306 million.)

The two primary uses of endowment income are financial aid and instruction. Endowments support several endowed chairs and professors, bringing exceptionally talented faculty into the classroom; this is an important supplement to unrestricted appropriations and tuition revenues allocated to faculty salaries. Gift funds are spread over all functional areas. The $10.0 million spent in academic support provided important discretionary funds for deans and department heads in several colleges, programs, and departments. (This does not include gifts for construction, which play an important role in capital development at each campus.) Restricted state appropriations include funding for UT’s Centers of Excellence and Governor’s Chairs; these funds are leveraged to acquire federal and private research funding and support dozens of graduate assistants and post-docs.

A-12

30



Unrestricted Net Assets

The university maintains sufficient levels of unrestricted net assets to comply with state regulations on working capital, properly account for revolving funds related to unique operations and fund allocation mechanisms, and meet contractual obligations and operational plans for the next year. University fiscal policy requires current fund operating budgets to provide year-end net asset fund balances sufficient to ensure adequate financial resources for the next fiscal year.

Working capital is set aside to provide sufficient liquidity to fund accounts receivable, inventories, and petty cash. These set asides are required by state regulations and are considered to be non-expendable

during the fiscal year.

Revolving funds are set aside for unique functions. Some are operating fund balances tied to revenue-generating units that are expected to operate as independent business operations (e.g., service centers, motor pools, conference centers, medical clinics). Others are used to allocate university-wide costs or revenues among campuses and institutes in order to meet certain accounting requirements or support specialized internal cost-distribution models. Examples include funds related to unemployment compensation, unpaid wages & salaries, COBRA adjustments, and workers compensation liabilities.

Encumbrances are funds carried over to fund commitments for purchases of goods and services that were not received before the close of the fiscal year. These funds are budgeted in the appropriate expenditure accounts as the goods and services are received. They are typically fully expended during the fiscal year.

Reappropriations are funds carried forward from the previous fiscal year for specific programs and initiatives. The most common example is a project that was planned for the previous fiscal year but delayed until the next fiscal year. Most reappropriations are fully expended during the current year.

Unallocated net asset fund balances are needed to adjust to minor fluctuations in revenues and expenditures that occur each year. It is university practice to limit these fund balances to avoid building excessive levels of unallocated current funds. The target range for unrestricted educational and general (E&G) funds is 2% to 5% of total expenditures and transfers. The auxiliary fund target range is 3% to 5% of auxiliary expenditures and transfers.

A-13

31



Unrestricted Net Assets (continued)

The revised budget projects a June 30 unrestricted E&G unallocated fund balance of $58.4 million, or 3.77% of expenditures and transfers. The unrestricted auxiliary enterprises unallocated balance is $10.0 million, 3.64% of expenditures and transfers. The total unallocated balance projected for June 30 is $68.4million, which is 3.75% of expenditures and transfers.

FY 2019-20 Revised Budget Unrestricted Net Assets ($ millions)

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

E&G Auxiliaries Total

$58.4

$10.0

$68.4

$22.4

$6.2

$28.7

$18.7

$4.7

$23.3

$2.5$2.5

$3.5$3.5

(In M

illio

ns)

Unallocated

Working Capital

Revolving Funds

Reappropriations

Encumbrances

$58.4 million 3.77%

$10.0 million 3.64%

$68.4 million 3.75%

Unallocated Balance % of Expenditures & Transfers

A-14

32



THE UNIVERSITY OF TENNESSEE BOARD OF TRUSTEES

Resolution to Approve the FY 2019-20 Revised Operating Budget

WHEREAS, by state law, the Board of Trustees must approve an annual operating budget for the University; and

WHEREAS, the Board approved the FY 2019-20 operating budget on June 21, 2019; and

WHEREAS, the operating budget must be revised during the year to update revenue and expenditure projections for the remainder of the fiscal year, taking into consideration final fall enrollments (which are estimated when the original budget is prepared), the impact of the prior year’s activities carried forward into the current year, and adjustments in state appropriations occurring since the budget was approved on June 21, 2019; and

WHEREAS, the 2019-20 Revised Operating Budget includes adjustments allocating revisions to budgeted revenues and carry forward of unexpended non-recurring funds from 2018-19; and

WHEREAS, further adjustments may be required if material changes in revenues or expenditures arise during the remainder of FY 2019-20; and

WHEREAS, the FY 2019-20 Revised Budgets for Unrestricted Education and General (E&G) and Auxiliary Enterprises are balanced, and within available resources and comply with all applicable policies and guidelines;

NOW, THEREFORE, BE IT RESOLVED:

1. The FY 2019-20 Revised Unrestricted, Educational and General Operating Budget in the amount of $1,550,545,410 and the Revised Unrestricted Auxiliary Operating Budget in the amount of $273,660,538 are hereby approved with the understanding that if the General Assembly or the Department of Finance and Administration further alters the FY 2019-20 appropriations, or if changes in estimated resources require, the budget shall be modified accordingly so expenditures will not exceed available resources.

2. Any additional general salary increases that exceed the FY 2019-20 salary and wage plan may only be granted upon approval by the Board of Trustees.

3. Any remaining balance of unrestricted net assets may be considered as a reserve for contingencies to be used for:

a. Employing additional staff where enrollments, operational plans, or reorganization requirements warrant;

b. Modifying departmental operating budgets where changing conditions during the year require funding adjustments;

c. Funding to make salary adjustments for personnel as may be necessary during the year in keeping with state and university salary guidelines;

d. Improving physical facilities for academic and research departments as opportunities arise;e. Mandated cost increases; andf. State impoundment of funds or appropriations rescission during the budget year.

A-15

33



FY 2019-20 Revised Budget Schedule Description Page

Unrestricted and Restricted Current Funds – Pie Chart B-2

Unrestricted E&G Current Funds – Pie Chart B-3

State Appropriations Budgeted as Unrestricted E&G B-4

State Appropriations Budgeted as Unrestricted and Restricted E&G B-5

State Appropriations - Five Year History B-6

Net Assets by Unit – Unrestricted Current Funds B-7

Net Assets by Unit – Unrestricted Educational and General Current Funds B-8

Net Assets by Unit – Unrestricted Auxiliary Current Funds B-9

Revised Budget – Unrestricted Current Funds B-10

Revised Budget – Unrestricted and Restricted Current Funds B-11

Five Year History - Unrestricted Current Funds B-12

Five Year History – Unrestricted and Restricted Current Funds B-13

Revised Budget Summary – Unrestricted and Restricted Current Funds B-14

Natural Classifications by Unit – Unrestricted Current Funds B-15

Natural Classifications – Unrestricted Current Funds Summary B-16

Auxiliary Enterprises – Revised Budget Summary B-17

Athletics – Revised Budget Summary B-18

Revised Budget Summaries – Unrestricted Current Funds

Recurring and Non-Recurring Unrestricted Funds B-19

University of Tennessee System B-22

Chattanooga B-23

Knoxville (Includes Space Institute) B-24

Martin B-25

Health Science Center B-26

Institute of Agriculture B-27

Institute for Public Service B-28

System Administration B-29

B-1

34


The University of TennesseeFY 2019-20 Revised Budget

Unrestricted & Restricted Current Funds

State Appropriatio

ns$656.4

26%

Grants & Contracts

$673.226%

Other$144.4

6%

Auxiliaries$273.9

11%

Sales & Services

$60.92%

Tuition & Fees

$739.129%

Revenues$2.5 b i l l ion

Instruction$823.8

32%

Research$353.4

14%Public Service$162.0

6%

Institutional Support$180.7

7%

Scholarships$315.8

12%

Student Services$105.6

4%

Academic Support$246.4

10%

Oper./Maint.$157.0

6%

Auxiliaries$209.5

8%

Expenditures$2.5 b i l l ion

Faculty 4,345

Administrative 979

Professional 3,413

Cler/Tech/Maint 5,551

TOTAL 14,289

FTE Positions (Unrestricted & Restricted)

October 31, 2019

Knoxville 29,009

Chattanooga 11,590

Martin 7,280

Health Science Center 3,252

Vet Med 370

Space Institute 81

TOTAL 51,582

Fall 2019 Headcount Enrollment

Unrestricted & Restricted Revenues

($millions)

Chattanooga $261.0

Knoxville 1,254.2

Martin 148.2

Health Science Center 602.3

Institute of Agriculture 203.3

Inst. for Public Service 32.5

System Administration 46.5

TOTAL $2,547.9

B-2

35


The University of TennesseeFY 2019-20 Revised Budget

Unrestricted Current Funds

State Appropriatio

ns$640.1

35%

Grants & Contracts

$46.13%

Other$64.3

4%Auxiliaries$273.7

15%

Sales & Services

$60.93%

Tuition & Fees

$739.140%

Revenues$1.8 b i l l ion

Instruction$608.2

34%

Research$156.6

6%Public Service$87.5

5%

Institutional Support$179.0

10%

Scholarships$134.5

7%

Student Services$102.4

6%

Academic Support$196.6

11%

Oper./Maint.$156.5

8%

Auxiliaries$209.2

11%

Expenditures$1.8 b i l l ion

Faculty 3,523

Administrative 919

Professional 2,533

Cler/Tech/Maint 4,658

TOTAL 11,633

FTE Positions (Unrestricted)

October 31, 2019

Knoxville 26,697

Chattanooga 10,514

Martin 5,633

Health Science Center 3,437

Vet Med 565

Space Institute 43

TOTAL 46,889

Fall 2019 FTE Enrollment

Current Fund Revenues($millions)

Chattanooga $204.2

Knoxville 989.6

Martin 114.4

Health Science Center 290.4

Institute of Agriculture 153.8

Inst. for Public Service 26.5

System Administration 44.6

TOTAL $1,824.2

B-3

36


University of Tennessee SystemFY 2019-20 Revised Budget State Appropriations Summary

Unrestricted Educational and General Funds

ChangeFY 2018-19 FY 2019-20 FY 2019-20 Original to Revised

Actual Original Revised Amount %STATE APPROPRIATIONS

Chattanooga 55,430,905$ 59,484,805$ 59,740,705$ 255,900$ 0.4 %Knoxville

Knoxville 232,311,655$ 249,189,855$ 250,079,655$ 889,800$ 0.4 %Space Institute 9,132,803 9,367,803 9,381,103 13,300 0.1 %

Subtotal Knoxville 241,444,458$ 258,557,658$ 259,460,758$ 903,100$ 0.3 %

Martin 34,410,197 36,128,697 36,460,897 332,200 0.9 %Health Science Center 154,589,424 162,078,924 162,458,524 379,600 0.2 %Institute of Agriculture

Agricultural Experiment Station 30,008,688$ 31,090,388$ 31,206,388$ 116,000$ 0.4 %Extension 36,651,817 38,329,617 38,387,017 57,400 0.1 %College of Veterinary Medicine 21,236,259 22,441,359 22,518,259 76,900 0.3 %

Subtotal Institute of Agriculture 87,896,764$ 91,861,364$ 92,111,664$ 250,300$ 0.3 %

Institute for Public ServiceInstitute for Public Service 5,929,385$ 6,119,585$ 6,124,885$ 5,300$ 0.1 %Municipal Technical Advisory Service 3,535,751 3,703,651 3,715,551 11,900 0.3 %County Technical Assistance Service 3,056,451 3,189,051 3,205,751 16,700 0.5 %Tennessee Language Center 665,600 705,600 712,300 6,700 0.9 %

Subtotal Institute for Public Service 13,187,187$ 13,717,887$ 13,758,487$ 40,600$ 0.3 %

System Administration 5,654,017 16,083,817 16,109,917 26,100 0.2 %Total State Appropriations 592,612,952$ 637,913,152$ 640,100,952$ 2,187,800$ 0.3 %

State appropriations budgeted to restricted funds are not included in this schedule.

B-4

37


University of Tennessee SystemFY 2019-20 Revised Budget State Appropriations Summary

Unrestricted and Restricted Educational and General Funds


Actual Original Revised Amount %STATE APPROPRIATIONS

Chattanooga 56,212,501$ 60,277,339$ 60,533,894$ 256,555$ 0.4 %Knoxville

Knoxville 242,373,799$ 259,874,778$ 260,768,967$ 894,189$ 0.3 %Space Institute 10,045,619 10,222,414 10,236,420 14,006 0.1 %

Subtotal Knoxville 252,419,418$ 270,097,192$ 271,005,387$ 908,195$ 0.3 %

Martin 34,710,673 36,433,378 36,765,830 332,452 0.9 %Health Science Center 159,760,316 165,164,672 165,545,525 380,853 0.2 %Institute of Agriculture

Agricultural Experiment Station 30,010,793$ 31,090,388$ 31,206,388$ 116,000$ 0.4 %Extension 36,651,817 38,329,617 38,387,017 57,400 0.1 %College of Veterinary Medicine 21,750,558 22,964,990 23,042,322 77,332 0.3 %

Subtotal Institute of Agriculture 88,413,168$ 92,384,995$ 92,635,727$ 250,732$ 0.3 %

Institute for Public ServiceInstitute for Public Service 5,929,385$ 6,119,585$ 6,124,885$ 5,300$ 0.1 %Municipal Technical Advisory Service 3,535,751 3,703,651 3,715,551 11,900 0.3 %County Technical Assistance Service 3,056,451 3,189,051 3,205,751 16,700 0.5 %Tennessee Language Center 665,600 705,600 712,300 6,700 0.9 %

Subtotal Institute for Public Service 13,187,187$ 13,717,887$ 13,758,487$ 40,600$ 0.3 %

System Administration 6,062,573 16,083,817 16,109,917 26,100 0.2 %Total State Appropriations 610,765,836$ 654,159,280$ 656,354,767$ 2,195,487$ 0.3 %

B-5

38


University of Tennessee SystemFY 2019-20 Revised Budget

State Appropriations Five Year HistoryUnrestricted Current Educational and General Funds

ChangeFY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2015-16 TO FY 2019-20

Actual Actual Actual Actual Revised Amount %STATE APPROPRIATIONS

Chattanooga 42,637,305$ 46,671,705$ 51,840,105$ 55,430,905$ 59,740,705$ 17,103,400$ 40.1 %Knoxville

Knoxville 191,219,955$ 202,989,655$ 226,290,355$ 232,311,655$ 250,079,655$ 58,859,700$ 30.8 %Space Institute 8,289,803 8,583,903 8,990,803 9,132,803 9,381,103 1,091,300 13.2 %

Subtotal Knoxville 199,509,758$ 211,573,558$ 235,281,158$ 241,444,458$ 259,460,758$ 59,951,000$ 30.0 %

Martin 28,673,797$ 31,508,097$ 33,208,097$ 34,410,197$ 36,460,897$ 7,787,100$ 27.2 %Health Science Center 135,670,521 141,084,321 149,955,324 154,589,424 162,458,524 26,788,003 19.7 %Institute of Agriculture

AgResearch 26,529,588$ 27,745,788$ 29,161,888$ 30,008,688$ 31,206,388$ 4,676,800$ 17.6 %Extension 32,546,817 33,950,817 35,701,417 36,651,817 38,387,017 5,840,200 17.9 %College of Veterinary Medicine 17,733,159 18,453,659 20,036,359 21,236,259 22,518,259 4,785,100 27.0 %

Subtotal Institute of Agriculture 76,809,564$ 80,150,264$ 84,899,664$ 87,896,764$ 92,111,664$ 15,302,100$ 19.9 %

Institute for Public ServiceInstitute for Public Service 5,439,285$ 5,643,985$ 5,841,485$ 5,929,385$ 6,124,885$ 685,600$ 12.6 %Municipal Technical Advisory Service 3,039,651 3,159,551 3,410,551 3,535,751 3,715,551 675,900 22.2 %County Technical Assistance Service 1,863,251 2,238,651 2,964,551 3,056,451 3,205,751 1,342,500 72.1 %Tennessee Language Center 665,600 712,300 712,300

Subtotal Institute for Public Service 10,342,187$ 11,042,187$ 12,216,587$ 13,187,187$ 13,758,487$ 3,416,300$ 33.0 %

System Administration 4,995,217 5,531,417 5,615,617 5,654,017 16,109,917 11,114,700 222.5 %Total State Appropriations 498,638,349$ 527,561,549$ 573,016,552$ 592,612,952$ 640,100,952$ 141,462,603$ 28.4 %

B-6

39



Net Assets by UnitUnrestricted Current Funds, Revenues, Expenditures, and Transfers

Total System Chattanooga Knoxville MartinHealth Science

CenterInstitute of Agriculture

Institute for Public Service


FY 2017-18 ActualNet Assets at Beginning of Year 118,161,748$ 11,898,755$ 45,947,815$ 10,224,440$ 14,490,503$ 14,051,561$ 1,417,763$ 20,130,680$ Operating Funds

Revenue 1,733,520,529$ 185,180,418$ 962,360,056$ 105,829,032$ 283,900,714$ 145,147,879$ 21,250,273$ 29,852,156$ Less: Expenditures and Transfers (1,716,046,492) (184,603,226) (952,298,590) (106,548,602) (281,170,747) (143,394,747) (21,146,667) (26,883,914)

Carryover Funds To/(From) Net Assets 17,474,036$ 577,192$ 10,061,467$ (719,570)$ 2,729,967$ 1,753,132$ 103,606$ 2,968,242$

Net Assets Detail:ALLOCATED

Working Capital 29,104,515$ 4,675,946$ 7,255,501$ 2,055,552$ 7,052,343$ 2,443,080$ 94,456$ 5,527,638$ Revolving Funds 24,571,946 10,109,451 14,462,495 Encumbrances 3,436,957 1,806,165 85,823 550,167 959,802 35,000 Reserve for Reappropriations 11,890,693 2,400,000 7,000,000 700,000$ 1,790,693

Total Allocated Net Assets 69,004,111$ 4,675,946$ 19,171,117$ 4,541,375$ 7,602,510$ 10,402,882$ 829,456$ 21,780,826$

UNALLOCATED 66,631,442$ 7,800,000$ 36,838,166$ 4,963,494$ 9,617,960$ 5,401,812$ 691,914$ 1,318,096$ Total Net Assets - June 30, 2018 135,635,553$ 12,475,947$ 56,009,282$ 9,504,870$ 17,220,470$ 15,804,693$ 1,521,370$ 23,098,922$

Percent Unallocated of Expend. & Transfers 3.88% 4.23% 3.87% 4.66% 3.42% 3.77% 3.27% 2.92%

FY 2018-19 ActualsNet Assets at Beginning of Year 135,635,553$ 12,475,947$ 56,009,282$ 9,504,870$ 17,220,470$ 15,804,693$ 1,521,370$ 23,098,922$ Operating Funds


Carryover Funds To/(From) Net Assets (8,650,711)$ 1,335,915$ 2,319,739$ (2,850,635)$ (5,071,521)$ (6,654,856)$ 254,408$ 2,016,240$


Working Capital 28,771,234$ 4,911,862$ 10,265,180$ 1,315,110$ 5,657,443$ 1,490,859$ 76,338$ 5,054,442$ Revolving Funds 23,866,327 6,756,775 17,109,552 Encumbrances 3,510,352 1,449,241 101,015 503,380 1,456,716 Reserve for Reappropriations 2,244,809 700,000$ 1,544,809

Total Allocated Net Assets 58,392,722$ 4,911,862$ 18,471,196$ 1,416,125$ 6,160,823$ 2,947,575$ 776,338$ 23,708,803$ UNALLOCATED 68,592,121$ 8,900,000$ 39,857,825$ 5,238,110$ 5,988,126$ 6,202,261$ 999,440$ 1,406,359$

Total Net Assets - June 30, 2019 126,984,843$ 13,811,862$ 58,329,021$ 6,654,235$ 12,148,949$ 9,149,837$ 1,775,778$ 25,115,162$ Percent Unallocated of Expend. & Transfers 3.81% 4.50% 4.07% 4.68% 2.04% 3.92% 3.81% 2.73%

FY 2019-20 Revised BudgetNet Assets at Beginning of Year 126,984,843$ 13,811,862$ 58,329,021$ 6,654,235$ 12,148,949$ 9,149,837$ 1,775,778$ 25,115,162$ Operating Funds


Carryover Funds To/(From) Net Assets (591,304)$ -$ -$ -$ (32,602)$ (191,378)$ 152,200$ (519,524)$


Working Capital 28,672,337$ 4,911,862$ 10,265,181$ 1,315,110$ 5,657,444$ 1,490,860$ 110,019$ 4,921,861$ Revolving Funds 23,321,763 6,756,775$ 16,564,988$ Encumbrances 3,510,342 1,449,241$ 101,015$ 503,380$ 1,456,706$ Reserve for Reappropriations 2,490,693 700,000$ 1,790,693

Total Allocated Net Assets 57,995,135$ 4,911,862$ 18,471,197$ 1,416,125$ 6,160,824$ 2,947,566$ 810,019$ 23,277,542$ UNALLOCATED 68,398,404$ 8,900,000$ 39,857,824$ 5,238,110$ 5,955,523$ 6,010,892$ 1,117,959$ 1,318,096$

Estimated Total Net Assets - June 30, 2020 126,393,539$ 13,811,862$ 58,329,021$ 6,654,235$ 12,116,347$ 8,958,459$ 1,927,978$ 24,595,638$ Percent Unallocated of Expend. & Transfers 3.75% 4.34% 4.03% 4.58% 2.05% 3.90% 4.24% 2.92%

Knoxville includes UT Knoxville and UT Space Institute.

Recommended percent unallocated of expenditures and transfers is 2% to 5% is 2.5% for unrestricted E&G and 3% to 5% for auxiliaries. For System Administration, transfers-in for system charge is excluded from the calculation.

B-7

40



Net Assets by UnitUnrestricted Educational and General Current Funds







Carryover Funds To/(From) Net Assets 13,234,345$ 470,417$ 5,914,281$ (783,159)$ 2,807,826$ 1,753,132$ 103,606$ 2,968,242$


Working Capital 22,444,036$ 3,602,866$ 2,109,934$ 1,629,197$ 7,036,865$ 2,443,080$ 94,456$ 5,527,638$ Revolving Funds 16,251,387 1,788,892 14,462,495 Encumbrances 3,412,482 1,806,165 85,823 525,692 959,802 35,000 Unexpended GiftsReserve for Reappropriations 11,890,693 2,400,000 7,000,000 700,000$ 1,790,693





Carryover Funds To/(From) Net Assets (4,176,105)$ 1,141,501$ 6,797,711$ (2,682,379)$ (5,048,730)$ (6,654,856)$ 254,408$ 2,016,240$


Working Capital 22,550,458$ 3,744,367$ 5,624,748$ 909,330$ 5,650,376$ 1,490,859$ 76,336$ 5,054,442$ Revolving Funds 19,195,984 2,086,432 17,109,552 Encumbrances 3,510,352 1,449,241 101,015 503,380 1,456,716 Unexpended GiftsReserve for Reappropriations 2,244,809 - 700,000$ 1,544,809



FY 2019-20 Revised BudgetNet Assets at Beginning of Year 106,129,298$ 11,744,366$ 40,298,875$ 5,982,963$ 12,062,317$ 9,149,837$ 1,775,777$ 25,115,163$ Operating Funds


Carryover Funds To/(From) Net Assets (591,304)$ -$ -$ -$ (32,602)$ (191,378)$ 152,200$ (519,524)$


Working Capital 22,451,561$ 3,744,367$ 5,624,748$ 909,330$ 5,650,377$ 1,490,860$ 110,018$ 4,921,861$ Revolving Funds 18,651,420 2,086,432 16,564,988 Encumbrances 3,545,352 1,449,241 101,015 503,380 1,456,716 35,000 Unexpended GiftsReserve for Reappropriations 2,490,693 - 700,000$ 1,790,693

Total Allocated Net Assets 47,139,026$ 3,744,367$ 9,160,421$ 1,010,345$ 6,153,757$ 2,947,576$ 845,018$ 23,277,542$ UNALLOCATED 58,433,975$ 8,000,000$ 31,138,453$ 4,972,617$ 5,875,958$ 6,010,892$ 1,117,959$ 1,318,096$

Estimated Total Net Assets - June 30, 2020 105,537,994$ 11,744,366$ 40,298,875$ 5,982,963$ 12,029,715$ 8,958,459$ 1,927,977$ 24,595,639$ Percent Unallocated of Expend. & Transfers 3.77% 4.34% 4.16% 4.77% 2.04% 3.90% 4.24% 2.05%

Recommended percent unallocated of expenditures and transfers is 2% to 5%. For System Administration, transfers-in for system charge is excluded from the calculation.Knoxville includes UT Knoxville and UT Space Institute.

B-8

41



CenterFY 2017-18 ActualNet Assets at Beginning of Year 21,090,458$ 1,766,305$ 18,360,933$ 775,939$ 187,281$ Operating Funds

Revenue 266,172,939$ 16,231,712$ 238,573,010$ 9,496,343$ 1,871,874$ Less: Expenditures and Transfers (261,933,250) (16,124,937) (234,425,824) (9,432,755) (1,949,734)

Carryover Funds To/(From) Net Assets 4,239,689$ 106,775$ 4,147,186$ 63,588$ (77,860)$ Net Assets at End of Year 25,330,147$ 1,873,080$ 22,508,119$ 839,527$ 109,421$


Working Capital 6,660,481$ 1,073,080$ 5,145,568$ 426,355$ 15,478$ Revolving Funds 8,320,557 8,320,557 Encumbrances 24,475 24,475

Total Allocated Net Assets 15,005,513$ 1,073,080$ 13,466,125$ 426,355$ 39,953$ UNALLOCATED 10,324,634 800,000$ 9,041,994$ 413,172$ 69,468$

Total Net Assets - June 30, 2018 25,330,147$ 1,873,080$ 22,508,119$ 839,527$ 109,421$ Percent Unallocated of Expend. & Transfers 3.94% 4.96% 3.86% 4.38% 3.56%

FY 2018-19 ActualNet Assets at Beginning of Year 25,330,147$ 1,873,080$ 22,508,119$ 839,527$ 109,421$ Operating Funds


Carryover Funds To/(From) Net Assets (4,474,605)$ 194,414$ (4,477,972)$ (168,256)$ (22,792)$ Net Assets at End of Year 20,855,542$ 2,067,494$ 18,030,147$ 671,271$ 86,629$


Working Capital 6,220,770$ 1,167,494$ 4,640,432$ 405,779$ 7,065$ Revolving Funds 4,670,343 4,670,343 Encumbrances


Total Net Assets - June 30, 2019 20,855,542$ 2,067,494$ 18,030,147$ 671,271$ 86,629$ Percent Unallocated of Expend. & Transfers 3.73% 4.63% 3.69% 2.62% 4.44%

FY 2019-20 Revised BudgetNet Assets at Beginning of Year 20,855,542$ 2,067,494$ 18,030,147$ 671,271$ 86,629$ Operating Funds


Carryover Funds To/(From) Net Assets -$ -$ -$ -$ -$ Net Assets at End of Year 20,855,542$ 2,067,494$ 18,030,147$ 671,271$ 86,629$


Working Capital 6,220,770$ 1,167,494$ 4,640,432$ 405,779$ 7,065$ Revolving Funds 4,670,343 4,670,343 Encumbrances


Estimated Total Net Assets - June 30, 2020 20,855,542$ 2,067,494$ 18,030,147$ 671,271$ 86,629$ Percent Unallocated of Expend. & Transfers 3.64% 4.38% 3.62% 2.62% 3.31%

Recommended percent unallocated of expenditures and transfers is 3% to 5%. Knoxville includes UT Knoxville and UT Space Institute.


Net Assets by UnitUnrestricted Auxiliary Funds, Revenues, Expenditures, and Transfers

B-9

42


University of Tennessee SystemFY 2019-20 Revised Budget Summary by Unit

Unrestricted Current Funds, Revenues, Expenditures, and Transfers





EDUCATIONAL AND GENERALRevenues

Tuition & Fees 739,049,538$ 118,988,927$ 455,995,815$ 62,668,190$ 88,493,645$ 12,902,961$ State Appropriations 640,100,952 59,740,705 259,460,758 36,460,897 162,458,524 92,111,664 13,758,487$ 16,109,917$ Grants & Contracts 46,133,430 531,023 23,910,000 241,400 16,921,624 4,350,205 179,178 Sales & Service 60,912,037 4,815,512 5,074,062 4,114,996 19,070,952 27,836,515 Other Sources 64,349,453 269,500 4,536,556 807,236 1,055,920 16,584,356 12,581,922 28,513,963

Total Revenues 1,550,545,410$ 184,345,667$ 748,977,191$ 104,292,719$ 288,000,665$ 153,785,701$ 26,519,587$ 44,623,880$

Expenditures and TransfersInstruction 608,207,945$ 83,557,072$ 290,501,105$ 45,689,021$ 148,623,440$ 39,837,307$ Research 156,564,902 3,728,832 96,815,508 165,756 12,588,041 43,266,765 Public Service 87,525,817 2,745,216 7,639,342 882,314 439,797 53,206,770 22,612,378$ Academic Support 196,633,057 18,624,116 96,883,023 10,880,102 60,721,067 9,298,755 225,994 Student Services 102,409,781 27,807,157 52,939,246 14,273,191 7,390,187 Institutional Support 179,003,048 17,175,134 61,318,807 7,301,531 32,220,684 2,745,702 878,174 57,363,016$ Op/Maint Physical Plant 156,462,676 21,299,989 85,101,101 12,080,172 34,217,447 3,763,967 Scholarships & Fellowships 134,517,841 14,009,186 99,444,423 13,081,573 7,867,651 115,008

Subtotal Expenditures 1,621,325,067$ 188,946,702$ 790,642,555$ 104,353,660$ 304,068,314$ 152,234,274$ 23,716,546$ 57,363,016$ Mandatory Transfers 11,301,088 4,207,165 738,454 552,276 5,673,193 130,000 Non Mandatory Transfers (81,489,441) (8,808,200) (42,403,818) (613,217) (21,708,240) 1,742,805 2,650,841 (12,349,612)

Total Expenditures & Transfers 1,551,136,714$ 184,345,667$ 748,977,191$ 104,292,719$ 288,033,267$ 153,977,079$ 26,367,387$ 45,143,404$ Fund Balance Addition/(Reduction) (591,304)$ (32,602)$ (191,378)$ 152,200$ (519,524)$

AUXILIARIESRevenues 273,660,538$ 20,570,587$ 240,559,998$ 10,124,296$ 2,405,657$ Expenditures and Transfers

Expenditures 209,224,040$ 12,446,476$ 187,801,368$ 6,786,435$ 2,189,761$ Mandatory Transfers 48,033,507 6,104,333 39,053,510 2,659,768 215,896 Non-Mandatory Transfers 16,402,991 2,019,778 13,705,120 678,093

Total Expenditures & Transfers 273,660,538$ 20,570,587$ 240,559,998$ 10,124,296$ 2,405,657$ Fund Balance Addition/(Reduction)

TOTALSRevenues 1,824,205,948$ 204,916,254$ 989,537,189$ 114,417,015$ 290,406,322$ 153,785,701$ 26,519,587$ 44,623,880$ Expenditures and Transfers

Expenditures 1,830,549,107$ 201,393,178$ 978,443,923$ 111,140,095$ 306,258,075$ 152,234,274$ 23,716,546$ 57,363,016$ Mandatory Transfers 59,334,595 10,311,498 39,791,964 3,212,044 5,889,089 130,000Non-Mandatory Transfers (65,086,450) (6,788,422) (28,698,698) 64,876 (21,708,240) 1,742,805 2,650,841 (12,349,612)

Total Expenditures & Transfers 1,824,797,252$ 204,916,254$ 989,537,189$ 114,417,015$ 290,438,924$ 153,977,079$ 26,367,387$ 45,143,404$ Fund Balance Addition/(Reduction) (591,304)$ (32,602)$ (191,378)$ 152,200$ (519,524)$


B-10

43


University of Tennessee SystemFY 2019-20 Revised Budget Summary by Unit

Unrestricted and Restricted Current Funds, Revenues, Expenditures, and Transfers






Tuition & Fees 739,049,538$ 118,988,927$ 455,995,815$ 62,668,190$ 88,493,645$ 12,902,961$ State Appropriations 656,354,767 60,533,894 271,005,387 36,765,830 165,545,525 92,635,727 13,758,487$ 16,109,917$ Grants & Contracts 673,232,140 48,504,051 241,532,000 30,266,400 298,421,624 47,855,205 5,402,860 1250000Sales & Service 60,912,037 4,815,512 5,074,062 4,114,996 19,070,952 27,836,515 Other Sources 144,425,608 7,575,112 39,745,756 4,229,149 28,405,920 22,066,456 13,289,252 29,113,963

Total Revenues 2,273,974,090$ 240,417,496$ 1,013,353,020$ 138,044,565$ 599,937,666$ 203,296,864$ 32,450,599$ 46,473,880$

Expenditures and TransfersInstruction 823,790,182$ 87,853,371$ 301,611,105$ 47,613,226$ 346,554,441$ 40,147,307$ 2,732$ 8,000$ Research 353,541,061 7,471,311 209,855,025 285,756 69,588,041 65,658,928 682,000 Public Service 161,961,277 3,881,757 29,639,342 2,032,314 17,939,797 79,349,770 28,518,297 600,000 Academic Support 246,377,852 21,188,877 108,398,023 11,480,102 95,721,067 9,356,755 233,028 Student Services 105,578,763 29,420,139 53,789,246 14,973,191 7,396,187 Institutional Support 180,742,073 17,424,670 61,598,807 7,401,531 32,720,684 2,826,702 886,663 57,883,016 Op/Maint Physical Plant 156,997,893 21,300,206 85,501,101 12,090,172 34,217,447 3,888,967 Scholarships & Fellowships 315,764,646 56,478,200 204,625,735 42,229,214 11,867,651 517,008 6,838 40,000

Subtotal Expenditures 2,344,753,747$ 245,018,531$ 1,055,018,384$ 138,105,506$ 616,005,315$ 201,745,437$ 29,647,558$ 59,213,016$ Mandatory Transfers 11,301,088 4,207,165 738,454 552,276 5,673,193 130,000 Non Mandatory Transfers (81,489,441) (8,808,200) (42,403,818) (613,217) (21,708,240) 1,742,805 2,650,841 (12,349,612)

Total Expenditures & Transfers 2,274,565,394$ 240,417,496$ 1,013,353,020$ 138,044,565$ 599,970,268$ 203,488,242$ 32,298,399$ 46,993,404$ Fund Balance Addition/(Reduction) (591,304)$ (32,602)$ (191,378)$ 152,200$ (519,524)$

AUXILIARIESRevenues 273,920,538$ 20,570,587$ 240,819,998$ 10,124,296$ 2,405,657$ Expenditures and Transfers

Expenditures 209,484,040$ 12,446,476$ 188,061,368$ 6,786,435$ 2,189,761$ Mandatory Transfers 48,033,507 6,104,333 39,053,510 2,659,768 215,896 Non-Mandatory Transfers 16,402,991 2,019,778 13,705,120 678,093

Total Expenditures & Transfers 273,920,538$ 20,570,587$ 240,819,998$ 10,124,296$ 2,405,657$ Fund Balance Addition/(Reduction)

TOTALSRevenues 2,547,894,628$ 260,988,083$ 1,254,173,018$ 148,168,861$ 602,343,323$ 203,296,864$ 32,450,599$ 46,473,880$ Expenditures and Transfers

Expenditures 2,554,237,787$ 257,465,007$ 1,243,079,752$ 144,891,941$ 618,195,076$ 201,745,437$ 29,647,558$ 59,213,016$ Mandatory Transfers 59,334,595 10,311,498 39,791,964 3,212,044 5,889,089 130,000Non-Mandatory Transfers (65,086,450) (6,788,422) (28,698,698) 64,876 (21,708,240) 1,742,805 2,650,841 (12,349,612)

Total Expenditures & Transfers 2,548,485,932$ 260,988,083$ 1,254,173,018$ 148,168,861$ 602,375,925$ 203,488,242$ 32,298,399$ 46,993,404$ Fund Balance Addition/(Reduction) (591,304)$ (32,602)$ (191,378)$ 152,200$ (519,524)$


B-11

44



Five Year HistoryUnrestricted Current Funds, Revenues, Expenditures, and Transfers

ChangeFY 2015-16 to FY 2019-20

FY 2015-16 Actual

FY 2016-17 Actual

FY 2017-18 Actual

FY 2018-19 Actual

FY 2019-20 Revised Amount %


Tuition & Fees 655,160,210$ 681,407,238$ 710,190,418$ 746,610,856$ 739,049,538$ 83,889,328$ 12.8 %State Appropriations 498,638,349 527,561,549 573,016,552 592,612,952 640,100,952 141,462,603 28.4 %Grants & Contracts 47,776,120 49,379,698 51,045,254 53,857,681 46,133,430 (1,642,690) (3.4) %Sales & Service 63,277,345 67,209,889 69,851,826 67,576,317 60,912,037 (2,365,308) (3.7) %Other Sources 63,237,010 61,722,810 63,243,539 68,902,249 64,349,453 1,112,443 1.8 %

Total Revenues 1,328,089,034$ 1,387,281,183$ 1,467,347,589$ 1,529,560,055$ 1,550,545,410$ 222,456,376$ 16.8 %

Expenditures and TransfersInstruction 507,785,919$ 528,475,592$ 498,578,427$ 510,622,839$ 608,207,945$ 100,422,026$ 19.8 %Research 85,108,045 82,089,147 131,121,213 140,499,005 156,564,902 71,456,857 84.0 %Public Service 75,848,480 77,402,864 79,639,156 81,353,080 87,525,817 11,677,337 15.4 %Academic Support 144,873,052 154,939,269 171,075,686 175,049,100 196,633,057 51,760,005 35.7 %Student Services 90,151,545 95,228,666 96,897,429 98,555,131 102,409,781 12,258,236 13.6 %Institutional Support 143,813,604 147,400,379 164,355,023 168,589,108 179,003,048 35,189,444 24.5 %Op/Maint Physical Plant 129,125,389 140,923,628 150,918,426 150,151,547 156,462,676 27,337,287 21.2 %Scholarships & Fellowships 95,852,388 100,705,270 115,038,571 124,958,755 134,517,841 38,665,453 40.3 %

Subtotal Expenditures 1,272,558,422$ 1,327,164,814$ 1,407,623,932$ 1,449,778,566$ 1,621,325,067$ 348,766,645$ 27.4 %Mandatory Transfers 9,116,648 10,203,193 10,733,175 15,435,736 11,301,088 2,184,440 24.0 %Non Mandatory Transfers 93,603,560 52,585,255 35,756,137 68,521,859 (81,489,441) (175,093,001) (187.1) %

Total Expenditures & Transfers 1,375,278,630$ 1,389,953,262$ 1,454,113,244$ 1,533,736,161$ 1,551,136,714$ 175,858,084$ 12.8 %Fund Balance Addition/(Reduction) (47,189,596)$ (2,672,078)$ 13,234,345$ (4,176,105)$ (591,304)$

AUXILIARIESRevenues 243,291,225$ 254,223,902$ 266,172,939$ 262,956,722$ 273,660,538$ 30,369,313$ 12.5 %Expenditures and Transfers

Expenditures 179,801,559$ 186,136,905$ 206,098,534$ 201,428,896$ 209,224,040$ 29,422,481$ 16.4 %Mandatory Transfers 35,921,341 42,169,835 46,326,750 45,401,257 48,033,507 12,112,166 33.7 %Non-Mandatory Transfers 34,109,650 25,428,666 9,507,965 20,601,174 16,402,991 (17,706,659) (51.9) %

Total Expenditures & Transfers 249,832,550$ 253,735,406$ 261,933,249$ 267,431,327$ 273,660,538$ 23,827,988$ 9.5 %Fund Balance Addition/(Reduction) (6,541,325)$ 488,496$ 4,239,690$ (4,474,606)$

TOTALSRevenues 1,571,380,259$ 1,641,505,085$ 1,733,520,528$ 1,792,516,777$ 1,824,205,948$ 252,825,689$ 16.1 %Expenditures and Transfers

Expenditures 1,452,359,981$ 1,513,301,719$ 1,613,722,467$ 1,651,207,462$ 1,830,549,107$ 378,189,126$ 26.0 %Mandatory Transfers 45,037,989 52,373,028 57,059,925 60,836,993 59,334,595 14296606 31.7 %Non-Mandatory Transfers 127,713,210 78,013,921 45,264,102 89,123,033 (65,086,450) (192,799,660) (151.0) %

Total Expenditures & Transfers 1,625,111,180$ 1,643,688,668$ 1,716,046,494$ 1,801,167,488$ 1,824,797,252$ 199,686,072$ 12.3 %Fund Balance Addition/(Reduction) (53,730,921)$ (2,183,583)$ 17,474,035$ (8,650,711)$ (591,304)$

B-12

45



Five Year HistoryUnrestricted and Restricted Current Funds, Revenues, Expenditures, and Transfers

ChangeFY 2016 to FY 2020

FY 2015-16 Actual

FY 2016-17 Actual

FY 2017-18 Actual

FY 2018-19 Actual

FY 2019-20 Revised Amount %


Tuition & Fees 655,160,210$ 681,407,238$ 710,190,418$ 746,610,856$ 739,049,538$ 83,889,328$ 12.8 %State Appropriations 517,432,168 546,284,768 592,062,887 610,765,836 656,354,767 138,922,599 26.8 %Grants & Contracts 594,898,136 683,228,016 636,058,864 693,424,426 673,232,140 78,334,004 13.2 %Sales & Service 63,277,345 67,209,889 69,851,826 67,576,317 60,912,037 (2,365,308) (3.7) %Other Sources 139,646,158 137,649,683 139,504,137 151,957,239 144,425,608 4,779,450 3.4 %

Total Revenues 1,970,414,018$ 2,115,779,593$ 2,147,668,133$ 2,270,334,675$ 2,273,974,090$ 303,560,072$ 15.4 %

Expenditures and TransfersInstruction 675,191,617$ 705,774,497$ 691,201,220$ 713,275,720$ 823,790,182$ 148,598,565$ 22.0 %Research 261,427,977 266,074,863 323,493,599 339,531,119 353,541,061 92,113,084 35.2 %Public Service 143,800,016 146,773,079 150,461,752 155,162,904 161,961,277 18,161,261 12.6 %Academic Support 190,896,151 207,096,268 218,247,500 225,257,207 246,377,852 55,481,701 29.1 %Student Services 92,750,862 97,803,344 100,380,026 101,857,372 105,578,763 12,827,901 13.8 %Institutional Support 146,540,103 149,261,875 166,685,771 170,448,648 180,742,073 34,201,970 23.3 %Op/Maint Physical Plant 129,513,235 141,350,370 151,286,259 150,502,571 156,997,893 27,484,658 21.2 %Scholarships & Fellowships 268,865,652 272,381,517 295,164,163 306,406,301 315,764,646 46,898,994 17.4 %

Subtotal Expenditures 1,908,985,614$ 1,986,515,814$ 2,096,920,290$ 2,162,441,842$ 2,344,753,747$ 435,768,133$ 22.8 %Mandatory Transfers 9,116,648 10,203,193 10,733,175 15,435,736 11,301,088 2,184,440 24.0 %Non Mandatory Transfers 93,603,560 52,585,255 35,756,137 68,521,859 (81,489,441) (175,093,001) (187.1) %

Total Expenditures & Transfers 2,011,705,822$ 2,049,304,262$ 2,143,409,602$ 2,246,399,437$ 2,274,565,394$ 262,859,572$ 13.1 %Fund Balance Addition/(Reduction) (41,291,804)$ 66,475,332$ 4,258,531$ 23,935,238$ (591,304)$

AUXILIARIESRevenues 243,882,965$ 255,189,378$ 266,956,202$ 263,466,564$ 273,920,538$ 30,037,573$ 12.3 %Expenditures and Transfers

Expenditures 180,136,338$ 186,905,317$ 207,035,549$ 202,169,439$ 209,484,040$ 29,347,702$ 16.3 %Mandatory Transfers 35,921,341 42,169,835 46,326,750 45,401,257 48,033,507 12,112,166 33.7 %Non-Mandatory Transfers 34,109,650 25,428,666 9,507,965 20,601,174 16,402,991 (17,706,659) (51.9) %

Total Expenditures & Transfers 250,167,329$ 254,503,818$ 262,870,264$ 268,171,870$ 273,920,538$ 23,753,209$ 9.5 %Fund Balance Addition/(Reduction) (6,284,365)$ 685,560$ 4,085,938$ (4,705,306)$

TOTALSRevenues 2,214,296,982$ 2,370,968,971$ 2,414,624,335$ 2,533,801,239$ 2,547,894,628$ 333,597,646$ 15.1 %Expenditures and Transfers

Expenditures 2,089,121,952$ 2,173,421,131$ 2,303,955,839$ 2,364,611,281$ 2,554,237,787$ 465,115,835$ 22.3 %Mandatory Transfers 45,037,989 52,373,028 57,059,925 60,836,993 59,334,595 14296606 31.7 %Non-Mandatory Transfers 127,713,210 78,013,921 45,264,102 89,123,033 (65,086,450) (192,799,660) (151.0) %

Total Expenditures & Transfers 2,261,873,151$ 2,303,808,080$ 2,406,279,866$ 2,514,571,307$ 2,548,485,932$ 286,612,781$ 12.7 %Fund Balance Addition/(Reduction) (47,576,169)$ 67,160,891$ 8,344,469$ 19,229,932$ (591,304)$

B-13

46


Actual Original Revised Original to RevisedUnrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Amount

EDUCATION AND GENERALRevenues

Tuition & Fees 746,610,856$ 746,610,856$ 737,237,524$ 737,237,524$ 739,049,538$ 739,049,538$ 1,812,014$ 0.2 %State Appropriations 592,612,952 18,152,884$ 610,765,836 637,913,152 16,246,128$ 654,159,280 640,100,952 16,253,815$ 656,354,767 2,195,487 0.3 %Grants & Contracts 53,857,681 639,566,746 693,424,426 44,239,633 587,602,033 631,841,666 46,133,430 627,098,710 673,232,140 41,390,474 6.6 %Sales & Service 67,576,317 67,576,317 59,785,352 59,785,352 60,912,037 60,912,037 1,126,685 1.9 %Other Sources 68,902,249 83,054,990 151,957,239 64,130,597 75,772,574 139,903,171 64,349,453 80,076,155 144,425,608 4,522,437 3.2 %

Total Revenues 1,529,560,055$ 740,774,620$ 2,270,334,675$ 1,543,306,258$ 679,620,735$ 2,222,926,993$ 1,550,545,410$ 723,428,680$ 2,273,974,090$ 51,047,097$ 2.3 %

Expenditures and TransfersInstruction 510,622,839$ 202,652,881$ 713,275,720$ 583,651,298 190,649,114$ 774,300,412$ 608,207,945$ 215,582,237$ 823,790,182$ 49,489,770$ 6.4 %Research 140,499,005 199,032,114 339,531,119 112,747,277 185,629,591 298,376,868 156,564,902 196,976,159 353,541,061 55,164,193 18.5 %Public Service 81,353,080 73,809,824 155,162,904 84,767,574 71,668,324 156,435,898 87,525,817 74,435,460 161,961,277 5,525,379 3.5 %Academic Support 175,049,100 50,208,107 225,257,207 185,720,011 47,949,306 233,669,317 196,633,057 49,744,795 246,377,852 12,708,535 5.4 %Student Services 98,555,131 3,302,241 101,857,372 98,803,604 2,325,051 101,128,655 102,409,781 3,168,982 105,578,763 4,450,108 4.4 %Institutional Support 168,589,108 1,859,540 170,448,648 173,561,530 1,990,736 175,552,266 179,003,048 1,739,025 180,742,073 5,189,807 3.0 %Operations & Maintenance of Plant 150,151,547 351,024 150,502,571 153,303,640 425,000 153,728,640 156,462,676 535,217 156,997,893 3,269,253 2.1 %Scholarships & Fellowships 124,958,755 181,447,546 306,406,301 133,501,966 178,983,613 312,485,579 134,517,841 181,246,805 315,764,646 3,279,067 1.0 %

Subtotal Expenditures 1,449,778,566$ 712,663,277$ 2,162,441,842$ 1,526,056,900$ 679,620,735$ 2,205,677,635$ 1,621,325,067$ 723,428,680$ 2,344,753,747$ 139,076,112$ 6.3 %Mandatory Transfers 15,435,736 15,435,736 11,329,678 11,329,678 11,301,088 11,301,088 (28,590) (0.3) %Non-Mandatory Transfers 68,521,859 68,521,859 5,876,341 5,876,341 (81,489,441) (81,489,441) (87,365,782) (1,486.7) %

Total Expenditures & Transfers 1,533,736,161$ 712,663,277$ 2,246,399,437$ 1,543,262,919$ 679,620,735$ 2,222,883,654$ 1,551,136,714$ 723,428,680$ 2,274,565,394$ 51,681,740$ 2.3 %Fund Balance Addition / (Reduction) (4,176,105)$ 28,111,344$ 23,935,238$ 43,339$ 43,339$ (591,304)$ (591,304)$

AUXILIARIESRevenues 262,956,722$ 509,843$ 263,466,564$ 273,656,320$ 260,000$ 273,916,320$ 273,660,538$ 260,000$ 273,920,538$ 4,218$ 0.0 %Expenditures and Transfers

Expenditures 201,428,896$ 740,543$ 202,169,439$ 209,045,274$ 260,000$ 209,305,274$ 209,224,040$ 260,000$ 209,484,040$ 178,766$ 0.1 %Mandatory Transfers 45,401,257 45,401,257 48,033,507 48,033,507 48,033,507 48,033,507 Non-Mandatory Transfers 20,601,174 20,601,174 16,577,539 16,577,539 16,402,991 16,402,991 (174,548) (1.1) %

Total Expenditures & Transfers 267,431,327$ 740,543$ 268,171,870$ 273,656,320$ 260,000$ 273,916,320$ 273,660,538$ 260,000$ 273,920,538$ 4,218$ - %Fund Balance Addition / (Reduction) (4,474,606)$ (230,700)$ (4,705,306)$

TOTALSRevenues 1,792,516,777$ 741,284,463$ 2,533,801,239$ 1,816,962,578$ 679,880,735$ 2,496,843,313$ 1,824,205,948$ 723,688,680$ 2,547,894,628$ 51,051,315$ 2.0 %Expenditures and Transfers

Expenditures 1,651,207,462$ 713,403,819$ 2,364,611,281$ 1,735,102,174$ 679,880,735$ 2,414,982,909$ 1,830,549,107$ 723,688,680$ 2,554,237,787$ 139,254,878$ 5.8 %Mandatory Transfers 60,836,993 60,836,993 59,363,185 59,363,185 59,334,595 59,334,595 (28,590) - %Non-Mandatory Transfers 89,123,033 89,123,033 22,453,880 22,453,880 (65,086,450) (65,086,450) (87,540,330) (389.9) %

Total Expenditures & Transfers 1,801,167,488$ 713,403,819$ 2,514,571,307$ 1,816,919,239$ 679,880,735$ 2,496,799,974$ 1,824,797,252$ 723,688,680$ 2,548,485,932$ 51,685,958$ 2.1 %Fund Balance Addition / (Reduction) (8,650,711)$ 27,880,643$ 19,229,932$ 43,339$ 43,339$ (591,304)$ (591,304)$

%

Change

University of Tennessee SystemFY 2019-20 Revised Budget Summary

Unrestricted and Restricted Current Funds Revenues, Expenditures and Transfers

FY 2018-19 FY 2019-20 FY 2019-20

B-14

47



Natural Classifications by UnitUnrestricted Current Funds Expenditures





EDUCATIONAL AND GENERALSalaries and Benefits

SalariesAcademic 374,187,446$ 48,004,648$ 181,408,015$ 24,905,611$ 85,966,735$ 33,260,665$ 499,977$ 141,795$ Non-Academic 381,851,975 43,203,464 151,738,056 22,920,421 76,376,158 48,554,434 11,859,387 27,200,055Students 8,709,720 991,346 5,011,253 1,342,358 827,728 383,838 20,800 132,397

Total Salaries 764,749,141$ 92,199,458$ 338,157,324$ 49,168,390$ 163,170,621$ 82,198,937$ 12,380,164$ 27,474,247$ Staff Benefits 267,498,136 34,793,553 116,875,908 20,115,505 49,054,911 33,109,458 4,393,998 9,154,803

Total Salaries and Benefits 1,032,247,277$ 126,993,011$ 455,033,232$ 69,283,895$ 212,225,532$ 115,308,395$ 16,774,162$ 36,629,050$ Operating 565,555,058 61,001,952 322,547,941 33,359,643 84,487,373 36,569,499 6,854,684 20,733,966Equipment and Capital Outlay 23,522,732 951,739 13,061,382 1,710,122 7,355,409 356,380 87,700

Total Expenditures 1,621,325,067$ 188,946,702$ 790,642,555$ 104,353,660$ 304,068,314$ 152,234,274$ 23,716,546$ 57,363,016$

AUXILIARIESSalaries and Benefits

SalariesAcademic 706,750$ 7,000$ 699,750$ Non-Academic 63,148,307 3,350,926 57,191,719 1,515,699$ 1,089,963$ Students 4,987,419 92,715 4,355,044 539,660

Total Salaries 68,842,476$ 3,450,641$ 62,246,513$ 2,055,359$ 1,089,963$ Staff Benefits 16,276,153 851,692 14,592,873 677,860 153,728

Total Salaries and Benefits 85,118,629$ 4,302,333$ 76,839,386$ 2,733,219$ 1,243,691$ Operating 123,235,335 8,136,673 110,258,980 4,048,216 791,466Equipment and Capital Outlay 870,076 7,470 703,002 5,000 154,604

Total Expenditures 209,224,040$ 12,446,476$ 187,801,368$ 6,786,435$ 2,189,761$

TOTALSSalaries and Benefits

SalariesAcademic 374,894,196$ 48,011,648$ 182,107,765$ 24,905,611$ 85,966,735$ 33,260,665$ 499,977$ 141,795$ Non-Academic 445,000,282 46,554,390 208,929,775 24,436,120 77,466,121 48,554,434 11,859,387 27,200,055Students 13,697,139 1,084,061 9,366,297 1,882,018 827,728 383,838 20,800 132,397

Total Salaries 833,591,617$ 95,650,099$ 400,403,837$ 51,223,749$ 164,260,584$ 82,198,937$ 12,380,164$ 27,474,247$ Staff Benefits 283,774,289 35,645,245 131,468,781 20,793,365 49,208,639 33,109,458 4,393,998 9,154,803

Total Salaries and Benefits 1,117,365,906$ 131,295,344$ 531,872,618$ 72,017,114$ 213,469,223$ 115,308,395$ 16,774,162$ 36,629,050$ Operating 688,790,393 69,138,625 432,806,921 37,407,859 85,278,839 36,569,499 6,854,684 20,733,966Equipment and Capital Outlay 24,392,808 959,209 13,764,384 1,715,122 7,510,013 356,380 87,700

Total Expenditures 1,830,549,107$ 201,393,178$ 978,443,923$ 111,140,095$ 306,258,075$ 152,234,274$ 23,716,546$ 57,363,016$

Knoxville includes UTK Knoxville and UT Space Institute.

B-15

48



Natural ClassificationsUnrestricted Current Funds Expenditures


Actual Original Revised Amount %EDUCATIONAL AND GENERALSalaries and Benefits

SalariesAcademic 371,375,977$ 374,947,683$ 374,187,446$ (760,237)$ (0.2) %Non-Academic 365,702,716 374,262,152 381,851,975 7,589,823 2.0 %Students 11,446,598 8,595,796 8,709,720 113,924 1.3 %

Total Salaries 748,525,292$ 757,805,631$ 764,749,141$ 6,943,510$ 0.9 %Staff Benefits 255,254,450 263,558,774 267,498,136 3,939,362 1.5 %

Total Salaries and Benefits 1,003,779,741$ 1,021,364,405$ 1,032,247,277$ 10,882,872$ 1.1 %Operating 413,446,614 481,667,220 565,555,058 83,887,838 17.4 %Equipment and Capital Outlay 32,552,211 23,025,275 23,522,732 497,457 2.2 %Total Expenditures 1,449,778,566$ 1,526,056,900$ 1,621,325,067$ 95,268,167$ 6.2 %

AUXILIARIESSalaries and Benefits

SalariesAcademic 539,275$ 682,751$ 706,750$ 23,999$ 3.5 %Non-Academic 59,450,705 61,919,081 63,148,307 1,229,226$ 2.0 %Students 4,947,809 4,989,653 4,987,419 (2,234) - %

Total Salaries 64,937,789$ 67,591,485$ 68,842,476$ 1,250,991$ 1.9 %Staff Benefits 16,309,652 16,597,486 16,276,153 (321,333) (1.9) %

Total Salaries and Benefits 81,247,440$ 84,188,971$ 85,118,629$ 929,658$ 1.1 %Operating 119,552,734 123,986,227 123,235,335 (750,892) (0.6) %Equipment and Capital Outlay 628,722 870,076 870,076Total Expenditures 201,428,896$ 209,045,274$ 209,224,040$ 178,766$ 0.1 %

TOTALSSalaries and Benefits

SalariesAcademic 371,915,253$ 375,630,434$ 374,894,196$ (736,238)$ (0.2) %Non-Academic 425,153,421 436,181,233 445,000,282 8,819,049 2.0 %Students 16,394,407 13,585,449 13,697,139 111,690 0.8 %

Total Salaries 813,463,080$ 825,397,116$ 833,591,617$ 8,194,501$ 1.0 %Staff Benefits 271,564,101 280,156,260 283,774,289 3,618,029 1.3 %

Total Salaries and Benefits 1,085,027,181$ 1,105,553,376$ 1,117,365,906$ 11,812,530$ 1.1 %Operating 532,999,347 605,653,447 688,790,393 83,136,946 13.7 %Equipment and Capital Outlay 33,180,933 23,895,351 24,392,808 497,457 2.1 %Total Expenditures 1,651,207,462$ 1,735,102,174$ 1,830,549,107$ 95,446,933$ 5.5 %

B-16

49



Auxiliary EnterprisesUnrestricted Auxiliary Current Funds Revenues, Expenditures and Transfers

FY 2018-19 FY 2019-20 FY 2019-20Actual Original Revised Amount %

HOUSINGRevenues 74,650,283$ 79,414,369$ 79,074,069$ (340,300)$ (0.4) %Expenditures and Transfers

Expenditures 44,771,109$ 47,330,363$ 47,009,995$ (320,368)$ (0.7) %Mandatory Transfers 23,789,334 26,725,592 26,725,592 Non-Mandatory Transfers 6,141,144 5,358,414 5,338,482 (19,932) (0.4) %

Total Expenditures and Transfers 74,701,587$ 79,414,369$ 79,074,069$ (340,300)$ (0.4) %Fund Balance Addition/(Reduction) (51,304)$

FOOD SERVICERevenues 11,654,698$ 12,033,205$ 12,632,065$ 598,860$ 5.0 %Expenditures and Transfers

Expenditures 2,935,891$ 3,921,688$ 4,594,562$ 672,874$ 17.2 %Mandatory Transfers 614,619 Non-Mandatory Transfers 7,174,772 8,111,517 8,037,503 (74,014) (0.9) %

Total Expenditures and Transfers 10,725,282$ 12,033,205$ 12,632,065$ 598,860$ 5.0 %Fund Balance Addition/(Reduction) 929,416$

BOOKSTORESRevenues 24,554,245$ 25,140,352$ 25,140,352$ Expenditures and Transfers

Expenditures 23,774,495$ 23,654,297$ 23,654,297$ Mandatory Transfers 109,418 109,418 Non-Mandatory Transfers 1,545,575 1,376,637 1,376,637

Total Expenditures and Transfers 25,320,070$ 25,140,352$ 25,140,352$ Fund Balance Addition/(Reduction) (765,825)$

PARKINGRevenues 14,536,400$ 15,373,258$ 15,443,167$ 69,909$ 0.5 %Expenditures and Transfers

Expenditures 7,719,322$ 8,648,185$ 8,718,094$ 69,909$ 0.8 %Mandatory Transfers 6,288,943 6,356,343 6,356,343 Non-Mandatory Transfers 781,315 368,730 368,730

Total Expenditures and Transfers 14,789,580$ 15,373,258$ 15,443,167$ 69,909$ 0.5 %Fund Balance Addition/(Reduction) (253,180)$

ATHLETICSRevenues 134,929,248$ 138,625,636$ 138,625,636$ Expenditures and Transfers

Expenditures 119,624,366$ 122,379,747$ 122,460,349$ 80,602$ 0.1 %Mandatory Transfers 14,146,812 14,842,154 14,842,154 Non-Mandatory Transfers 5,338,290 1,403,735 1,323,133 (80,602) (5.7) %

Total Expenditures and Transfers 139,109,468$ 138,625,636$ 138,625,636$ Fund Balance Addition/(Reduction) (4,180,220)$

OTHERRevenues 2,631,847$ 3,069,500$ 2,745,249$ (324,251)$ (10.6) %Expenditures and Transfers

Expenditures 2,603,713$ 3,110,994$ 2,786,743$ (324,251)$ (10.4) %Mandatory Transfers 561,549 Non-Mandatory Transfers (379,922) (41,494) (41,494)

Total Expenditures and Transfers 2,785,340$ 3,069,500$ 2,745,249$ (324,251)$ (10.6) %Fund Balance Addition/(Reduction) (153,493)$

TOTALRevenues 262,956,722$ 273,656,320$ 273,660,538$ 4,218$ 0.0 %Expenditures and Transfers

Expenditures 201,428,896$ 209,045,274$ 209,224,040$ 178,766$ 0.1 %Mandatory Transfers 45,401,257 48,033,507 48,033,507 Non-Mandatory Transfers 20,601,174 16,577,539 16,402,991 (174,548) (1.1) %

Total Expenditures and Transfers 267,431,327$ 273,656,320$ 273,660,538$ 4,218$ 0.0 %Fund Balance Addition/(Reduction) (4,474,606)$

Original to Revised

B-17

50




Actual Original Revised Amount %KNOXVILLERevenues

General FundsStudent Fees for Athletics 1,000,000$ 1,000,000$ 1,000,000$ Ticket Sales 34,735,101 37,011,874 37,011,874Gifts 29,036,790 28,850,000 28,850,000Other 71,338,631 72,761,262 72,761,262

Total Revenues 136,110,522$ 139,623,136$ 139,623,136$

Expenditures and TransfersSalaries and Benefits 49,590,714$ 52,004,928$ 52,004,928$ Travel 11,300,108 12,043,514 12,043,514Student Aid 15,391,882 15,974,801 15,974,801Other Operating 43,753,635 42,354,004 42,354,004

Subtotal Expenditures 120,036,339$ 122,377,247$ 122,377,247$ Debt Service Transfers 14,146,812 14,842,154 14,842,154Other Transfers 6,338,290 2,403,735 2,403,735

Total Expenditures and Transfers 140,521,441$ 139,623,136$ 139,623,136$ Fund Balance Addition / (Reduction) (4,410,919)$

CHATTANOOGARevenues

General Funds 7,744,872$ 7,308,856$ 7,547,186$ 238,330$ 3.3%Student Fees for Athletics 5,078,868 5,334,663 5,334,663Ticket Sales 802,826 935,523 836,523 (99,000) -10.6%Gifts 1,291,296 1,500,000 2,000,000 500,000 33.3%Other 2,225,971 1,879,500 1,376,000 (503,500) -26.8%

Total Revenues 17,143,833$ 16,958,542$ 17,094,372$ 135,830$ 0.8%

Expenditures and TransfersSalaries and Benefits 7,514,812$ 7,331,470$ 7,519,150$ 187,680$ 2.6%Travel 1,241,824 1,269,082 2,202,798 933,716 73.6%Student Aid 4,947,180 5,606,894 5,381,894 (225,000) -4.0%Other Operating 3,278,734 2,581,096 1,820,530 (760,566) -29.5%

Subtotal Expenditures 16,982,550$ 16,788,542$ 16,924,372$ 135,830$ 0.8%Debt Service Transfers 161,283 170,000 170,000Other Transfers

Total Expenditures and Transfers 17,143,833$ 16,958,542$ 17,094,372$ 135,830$ 0.8%Fund Balance Addition / (Reduction)

MARTINRevenues

General Funds 6,702,982$ 6,605,236$ 6,120,237$ (484,999)$ -7.3%Student Fees for Athletics 2,053,250 2,212,000 2,212,000Ticket Sales 150,311 140,000 140,000Gifts 668,562 661,000 671,000 10,000 1.5%Other 2,465,978 1,698,686 2,248,686 550,000 32.4%

Total Revenues 12,041,083$ 11,316,922$ 11,391,923$ 75,001$ 0.7%

Expenditures and TransfersSalaries and Benefits 4,425,022$ 4,476,859$ 4,489,043$ 12,184$ 0.3%Travel 864,215 470,238 459,038 (11,200) -2.4%Student Aid 4,334,765 4,468,232 4,608,214 139,982 3.1%Other Operating 2,200,850 1,785,126 1,719,161 (65,965) -3.7%

Subtotal Expenditures 11,824,852$ 11,200,455$ 11,275,456$ 75,001$ 0.7%Debt Service Transfers 216,231 116,467 116,467Other Transfers

Total Expenditures and Transfers 12,041,083$ 11,316,922$ 11,391,923$ 75,001$ 0.7%Fund Balance Addition / (Reduction)

TOTAL ATHLETICSRevenues

General Funds 14,447,854$ 13,914,092$ 13,667,423$ (246,669)$ -1.8%Student Fees for Athletics 8,132,118 8,546,663 8,546,663Ticket Sales 35,688,238 38,087,397 37,988,397 (99,000) -0.3%Gifts 30,996,648 31,011,000 31,521,000 510,000 1.6%Other 76,030,580 76,339,448 76,385,948 46,500 0.1%

Total Revenues 165,295,438$ 167,898,600$ 168,109,431$ 210,831$ 0.1%

Expenditures and TransfersSalaries and Benefits 61,530,549$ 63,813,257$ 64,013,121$ 199,864$ 0.3%Travel 13,406,147 13,782,834 14,705,350 922,516 6.7%Student Aid 24,673,827 26,049,927 25,964,909 (85,018) -0.3%Other Operating 49,233,219 46,720,226 45,893,695 (826,531) -1.8%

Subtotal Expenditures 148,843,742$ 150,366,244$ 150,577,075$ 210,831$ 0.1%Debt Service Transfers 14,524,326 15,128,621 15,128,621Other Transfers 6,338,290 2,403,735 2,403,735

Total Expenditures and Transfers 169,706,358$ 167,898,600$ 168,109,431$ 210,831$ 0.1%Fund Balance Addition / (Reduction) (4,410,919)$ -$ Includes unrestricted and restricted funds. Other revenue sources include NCAA conference income, tournament income, program sales, concessions, parking,broadcasting, television, radio, internet, endowments, investments, royalties, advertisements, sponsorships, game guarantees, licensing fees, and sports camps.

AthleticsUnrestricted and Restricted Current Funds for Men's and Women's Athletics

B-18

51



Recurring Unrestricted Current Funds Revenues, Expenditures, and Transfers

ChangeFY 2018-19 FY 2019-20 FY 2019-20

ActualOriginal

RecurringRevised

Recurring Amount %EDUCATIONAL AND GENERALRevenues

Tuition & Fees 746,610,856$ 737,237,524$ 739,043,643$ 1,806,119$ 0.2 %State Appropriations 592,612,952 626,869,552 629,057,352 2,187,800 0.3 %Grants & Contracts 53,857,681 44,239,633 46,056,263 1,816,630 4.1 %Sales & Service 67,576,317 59,815,352 60,351,059 535,707 0.9 %Other Sources 68,902,249 58,425,482 58,610,903 185,421 0.3 %

Total Revenues 1,529,560,055$ 1,526,587,543$ 1,533,119,220$ 6,531,677$ 0.4 %

Expenditures and TransfersInstruction 510,622,839$ 579,683,155$ 580,527,713$ 844,558$ 0.1 %Research 140,499,005 111,953,608 115,698,136 3,744,528 3.3 %Public Service 81,353,080 84,598,574 84,641,965 43,391 0.1 %Academic Support 175,049,100 184,917,165 181,422,616 (3,494,549) (1.9) %Student Services 98,555,131 98,703,604 99,930,686 1,227,082 1.2 %Institutional Support 168,589,108 173,232,063 174,933,640 1,701,577 1.0 %Operation & Maintenance of Plant 150,151,547 152,761,274 155,607,067 2,845,793 1.9 %Scholarships & Fellowships 124,958,755 132,471,666 132,721,099 249,433 0.2 %

Subtotal Expenditures 1,449,778,566$ 1,518,321,109$ 1,525,482,922$ 7,161,813$ 0.5 %Mandatory Transfers 15,435,736 9,041,985 9,013,395 (28,590) (0.3) %Non-Mandatory Transfers 68,521,859 (1,160,261) (1,656,689) (496,428) (42.8) %

Total Expenditures & Transfers 1,533,736,161$ 1,526,202,833$ 1,532,839,628$ 6,636,795$ 0.4 %

Fund Balance Addition/(Reduction) (4,176,105)$ 384,710$ 279,592$

AUXILIARIESRevenues 262,956,722$ 273,656,320$ 273,660,538$ 4,218$ - %Expenditures and Transfers

Expenditures 201,428,896 208,890,670 209,069,436 178,766 0.1 %Mandatory Transfers 45,401,257 48,188,111 48,188,111 Non-Mandatory Transfers 20,601,174 16,577,539 16,402,991 (174,548) (1.1) %

Total Expenditures & Transfers 267,431,327$ 273,656,320$ 273,660,538$ 4,218$ - %Fund Balance Addition/(Reduction) (4,474,606)$

TOTALSRevenues 1,792,516,777$ 1,800,243,863$ 1,806,779,758$ 6,535,895$ 0.4 %Expenditures and Transfers

Expenditures 1,651,207,462$ 1,727,211,779$ 1,734,552,358$ 7,340,579$ 0.4 %Mandatory Transfers 60,836,993 57,230,096 57,201,506 (28,590) - %Non-Mandatory Transfers 89,123,033 15,417,278 14,746,302 (670,976) (4.4) %

Total Expenditures & Transfers 1,801,167,488$ 1,799,859,153$ 1,806,500,166$ 6,641,013$ 0.4 %Fund Balance Addition/(Reduction) (8,650,711)$ 384,710$ 279,592$

Original to Revised

B-19

52



Unrestricted Current Funds Revenues, Expenditures, and TransfersRecurring and Non-Recurring Budgets

FY 2019-20 FY 2019-20 FY 2019-20Revised

RecurringRevised

Non-RecurringRevised

TotalEDUCATIONAL AND GENERALRevenues

Tuition & Fees 739,043,643$ 5,895$ 739,049,538$ State Appropriations 629,057,352 11,043,600 640,100,952 Grants & Contracts 46,056,263 77,167 46,133,430 Sales & Service 60,351,059 560,978 60,912,037 Other Sources 58,610,903 5,738,550 64,349,453

Total Revenues 1,533,119,220$ 17,426,190$ 1,550,545,410$

Expenditures and TransfersInstruction 580,527,713$ 27,680,232$ 608,207,945$ Research 115,698,136 40,866,766 156,564,902 Public Service 84,641,965 2,883,852 87,525,817 Academic Support 181,422,616 15,210,441 196,633,057 Student Services 99,930,686 2,479,095 102,409,781 Institutional Support 174,933,640 4,069,408 179,003,048 Operation & Maintenance of Plant 155,607,067 855,609 156,462,676 Scholarships & Fellowships 132,721,099 1,796,742 134,517,841

Subtotal Expenditures 1,525,482,922$ 95,842,145$ 1,621,325,067$ Mandatory Transfers 9,013,395 2,287,693 11,301,088 Non-Mandatory Transfers (1,656,689) (79,832,752) (81,489,441)

Total Expenditures & Transfers 1,532,839,628$ 18,297,086$ 1,551,136,714$

Fund Balance Addition/(Reduction) 279,592$ (870,896)$ (591,304)$

AUXILIARIESRevenues 273,660,538$ 273,660,538$ Expenditures and Transfers

Expenditures 209,069,436 $ 154,604 209,224,040 Mandatory Transfers 48,188,111 (154,604) 48,033,507 Non-Mandatory Transfers 16,402,991 16,402,991

Total Expenditures & Transfers 273,660,538$ 273,660,538$ Fund Balance Addition/(Reduction)

TOTALSRevenues 1,806,779,758$ 17,426,190$ 1,824,205,948$ Expenditures and Transfers

Expenditures 1,734,552,358$ 95,996,749$ 1,830,549,107$ Mandatory Transfers 57,201,506 2,133,089 59,334,595Non-Mandatory Transfers 14,746,302 (79,832,752) (65,086,450)

Total Expenditures & Transfers 1,806,500,166$ 18,297,086$ 1,824,797,252$ Fund Balance Addition/(Reduction) 279,592$ (870,896)$ (591,304)$

B-20

53



Recurring and Non-Recurring Unrestricted Funds

FY 2019-20 Original FY 2019-20 Revised ChangesRecurring Non-recurring Total Recurring Non-recurring Total Recurring Non-recurring Total


Tuition & Fees 737,237,524$ 737,237,524$ 739,043,643$ 5,895$ 739,049,538$ 1,806,119$ 0.2% 5,895$ 100.0% 1,812,014$ 0.2%State Appropriations 626,869,552 11,043,600 637,913,152 629,057,352 11,043,600$ 640,100,952 2,187,800 0.3% 2,187,800 0.3%Grants & Contracts 44,239,633 44,239,633 46,056,263 77,167 46,133,430 1,816,630 4.1% 77,167 100.0% 1,893,797 4.3%Sales & Service 59,815,352 (30,000) 59,785,352 60,351,059 560,978 60,912,037 535,707 0.9% 590,978 -1969.9% 1,126,685 1.9%Other Sources 58,425,482 5,705,115 64,130,597 58,610,903 5,738,550 64,349,453 185,421 0.3% 33,435 0.6% 218,856 0.3%

Total Revenues 1,526,587,543$ 16,718,715$ 1,543,306,258$ 1,533,119,220$ 17,426,190$ 1,550,545,410$ 6,531,677$ 0.4% 707,475$ 4.2% 7,239,152$ 0.5%

Expenditures and TransfersInstruction 579,683,155$ 3,968,143$ 583,651,298$ 580,527,713$ 27,680,232$ 608,207,945$ 844,558$ 0.1% 23,712,089$ 597.6% 24,556,647$ 4.2%Research 111,953,608 793,669 112,747,277 115,698,136 40,866,766 156,564,902 3,744,528 3.3% 40,073,097 5049.1% 43,817,625 38.9%Public Service 84,598,574 169,000 84,767,574 84,641,965 2,883,852 87,525,817 43,391 0.1% 2,714,852 1606.4% 2,758,243 3.3%Academic Support 184,917,165 802,846 185,720,011 181,422,616 15,210,441 196,633,057 (3,494,549) -1.9% 14,407,595 1794.6% 10,913,046 5.9%Student Services 98,703,604 100,000 98,803,604 99,930,686 2,479,095 102,409,781 1,227,082 1.2% 2,379,095 2379.1% 3,606,177 3.6%Institutional Support 173,232,063 329,467 173,561,530 174,933,640 4,069,408 179,003,048 1,701,577 1.0% 3,739,941 1135.1% 5,441,518 3.1%Operation & Maintenance of Plant 152,761,274 542,366 153,303,640 155,607,067 855,609 156,462,676 2,845,793 1.9% 313,243 57.8% 3,159,036 2.1%Scholarships & Fellowships 132,471,666 1,030,300 133,501,966 132,721,099 1,796,742 134,517,841 249,433 0.2% 766,442 74.4% 1,015,875 0.8%

Subtotal Expenditures 1,518,321,109$ 7,735,791$ 1,526,056,900$ 1,525,482,922$ 95,842,145$ 1,621,325,067$ 7,161,813$ 0.5% 88,106,354$ 1138.9% 95,268,167$ 6.2%Mandatory Transfers 9,041,985 2,287,693 11,329,678 9,013,395 2,287,693 11,301,088 (28,590) -0.3% (28,590) -0.3%Non-Mandatory Transfers (1,160,261) 7,036,602 5,876,341 (1,656,689) (79,832,752) (81,489,441) (496,428) 42.8% (86,869,354) -1234.5% (87,365,782) -1487%

Total Expenditures & Transfers 1,526,202,833$ 17,060,086$ 1,543,262,919$ 1,532,839,628$ 18,297,086$ 1,551,136,714$ 6,636,795$ 0.4% 1,237,000$ 7.3% 7,873,795$ 0.5%Fund Balance Addition/(Reduction) 384,710$ (341,371)$ 43,339$ 279,592$ (870,896)$ (591,304)$ (105,118)$ -27.3% (529,525)$ 155.1% (634,643)$ -1464%

AUXILIARIESRevenues 273,656,320$ 273,656,320$ 273,660,538$ 273,660,538$ 4,218$ 0.0% 4,218$ 0.0%Expenditures and Transfers

Expenditures 208,890,670 154,604$ 209,045,274 209,069,436 154,604$ 209,224,040 178,766 0.1% 178,766 0.1%Mandatory Transfers 48,188,111 (154,604) 48,033,507 48,188,111 (154,604) 48,033,507 Non-Mandatory Transfers 16,577,539 16,577,539 16,402,991 16,402,991 (174,548) -1.1% (174,548) -1.1%

Total Expenditures & Transfers 273,656,320$ 273,656,320$ 273,660,538$ 273,660,538$ 4,218$ 0.0% 4,218$ 0.0%Fund Balance Addition/(Reduction)

TOTALSRevenues 1,800,243,863$ 16,718,715$ 1,816,962,578$ 1,806,779,758$ 17,426,190$ 1,824,205,948$ 6,535,895$ 0.4% 707,475$ 4.2% 7,243,370$ 0.4%Expenditures and Transfers

Expenditures 1,727,211,779$ 7,890,395$ 1,735,102,174$ 1,734,552,358$ 95,996,749$ 1,830,549,107$ 7,340,579$ 0.4% 88,106,354$ 1116.6% 95,446,933$ 5.5%Mandatory Transfers 57,230,096 2,133,089 59,363,185 57,201,506 2,133,089 59,334,595 (28,590) 0.0% (28,590) 0.0%Non-Mandatory Transfers 15,417,278 7,036,602 22,453,880 14,746,302 (79,832,752) (65,086,450) (670,976) -4.4% (86,869,354) -1234.5% (87,540,330) -389.9%

Total Expenditures & Transfers 1,799,859,153$ 17,060,086$ 1,816,919,239$ 1,806,500,166$ 18,297,086$ 1,824,797,252$ 6,641,013$ 0.4% 1,237,000$ 7.3% 7,878,013$ 0.4%Fund Balance Addition/(Reduction) 384,710$ (341,371)$ 43,339$ 279,592$ (870,896)$ (591,304)$

B-21

54



Unrestricted Current Funds Revenues, Expenditures, and Transfers

ChangeFY 2018-19 FY 2019-20 FY 2019-20

Actual Original Revised Amount %EDUCATIONAL AND GENERALRevenues

Tuition & Fees 746,610,856$ 737,237,524$ 739,049,538$ 1,812,014$ 0.2 %State Appropriations 592,612,952 637,913,152 640,100,952 2,187,800 0.3 %Grants & Contracts 53,857,681 44,239,633 46,133,430 1,893,797 4.3 %Sales & Service 67,576,317 59,785,352 60,912,037 1,126,685 1.9 %Other Sources 68,902,249 64,130,597 64,349,453 218,856 0.3 %

Total Revenues 1,529,560,055$ 1,543,306,258$ 1,550,545,410$ 7,239,152$ 0.5 %

Expenditures and TransfersInstruction 510,622,839$ 583,651,298$ 608,207,945$ 24,556,647$ 4.2 %Research 140,499,005 112,747,277 156,564,902 43,817,625 38.9 %Public Service 81,353,080 84,767,574 87,525,817 2,758,243 3.3 %Academic Support 175,049,100 185,720,011 196,633,057 10,913,046 5.9 %Student Services 98,555,131 98,803,604 102,409,781 3,606,177 3.6 %Institutional Support 168,589,108 173,561,530 179,003,048 5,441,518 3.1 %Operation & Maintenance of Plant 150,151,547 153,303,640 156,462,676 3,159,036 2.1 %Scholarships & Fellowships 124,958,755 133,501,966 134,517,841 1,015,875 0.8 %

Subtotal Expenditures 1,449,778,566$ 1,526,056,900$ 1,621,325,067$ 95,268,167$ 6.2 %Mandatory Transfers 15,435,736 11,329,678 11,301,088 (28,590) (0.3) %Non-Mandatory Transfers 68,521,859 5,876,341 (81,489,441) (87,365,782) (1,486.7) %

Total Expenditures & Transfers 1,533,736,161$ 1,543,262,919$ 1,551,136,714$ 7,873,795$ 0.5 %

Fund Balance Addition/(Reduction) (4,176,105)$ 43,339$ (591,304)$




TOTALSRevenues 1,792,516,777$ 1,816,962,578$ 1,824,205,948$ 7,243,370$ 0.4 %Expenditures and Transfers

Expenditures 1,651,207,462$ 1,735,102,174$ 1,830,549,107$ 95,446,933$ 5.5 %Mandatory Transfers 60,836,993 59,363,185 59,334,595 (28,590) - %Non-Mandatory Transfers 89,123,033 22,453,880 (65,086,450) (87,540,330) (389.9) %

Total Expenditures & Transfers 1,801,167,488$ 1,816,919,239$ 1,824,797,252$ 7,878,013$ 0.4 %Fund Balance Addition/(Reduction) (8,650,711)$ 43,339$ (591,304)$

Original to Revised

B-22

55


ChattanoogaFY 2019-20 Revised Budget Summary




Tuition & Fees 117,339,254$ 118,417,631$ 118,988,927$ 571,296$ 0.5 %State Appropriations 55,430,905 59,484,805 59,740,705 255,900 0.4 %Grants & Contracts 981,434 453,856 531,023 77,167 17.0 %Sales & Service 5,630,230 4,818,012 4,815,512 (2,500) (0.1) %Other Sources 267,182 269,500 269,500

Total Revenues 179,649,005$ 183,443,804$ 184,345,667$ 901,863$ 0.5 %

Expenditures and TransfersInstruction 72,175,149$ 83,338,205$ 83,557,072$ 218,867$ 0.3 %Research 4,872,154 3,541,934 3,728,832 186,898 5.3 %Public Service 2,155,631 2,725,948 2,745,216 19,268 0.7 %Academic Support 16,791,038 17,416,114 18,624,116 1,208,002 6.9 %Student Services 26,762,751 27,387,547 27,807,157 419,610 1.5 %Institutional Support 16,024,804 17,202,422 17,175,134 (27,288) (0.2) %Operation & Maintenance of Plant 17,455,244 21,781,442 21,299,989 (481,453) (2.2) %Scholarships & Fellowships 13,707,403 14,009,186 14,009,186

Subtotal Expenditures 169,944,174$ 187,402,798$ 188,946,702$ 1,543,904$ 0.8 %Mandatory Transfers 3,396,147 4,207,165 4,207,165 Non-Mandatory Transfers 5,167,183 (8,166,159) (8,808,200) (642,041) (7.9) %

Total Expenditures & Transfers 178,507,504$ 183,443,804$ 184,345,667$ 901,863$ 0.5 %Fund Balance Addition/(Reduction) 1,141,501$

AUXILIARIESRevenues 19,634,328$ 20,620,587$ 20,570,587$ (50,000)$ (0.20) %Expenditures and Transfers

Expenditures 11,665,848 12,496,476 12,446,476 (50,000) (0.4) %Mandatory Transfers 5,417,394 6,104,333 6,104,333 Non-Mandatory Transfers 2,356,672 2,019,778 2,019,778

Total Expenditures & Transfers 19,439,914$ 20,620,587$ 20,570,587$ (50,000)$ (0.2) %Fund Balance Addition/(Reduction) 194,413$

TOTALSRevenues 199,283,332$ 204,064,391$ 204,916,254$ 851,863$ 0.4 %Expenditures and Transfers

Expenditures 181,610,022$ 199,899,274$ 201,393,178$ 1,493,904$ 0.7 %Mandatory Transfers 8,813,541 10,311,498 10,311,498 Non-Mandatory Transfers 7,523,855 (6,146,381) (6,788,422) (642,041) (10.4) %


B-23

56


KnoxvilleFY 2019-20 Revised Budget Summary




Tuition & Fees 462,823,754$ 455,920,155$ 455,995,815$ 75,660$ - %State Appropriations 241,444,458 258,557,658 259,460,758 903,100 0.3 %Grants & Contracts 29,828,658 23,910,000 23,910,000 Sales & Service 9,158,905 5,073,232 5,074,062 830 - %Other Sources 7,741,004 4,542,597 4,536,556 (6,041) (0.1) %

Total Revenues 750,996,779$ 748,003,642$ 748,977,191$ 973,549$ 0.1 %

Expenditures and TransfersInstruction 234,979,581$ 276,860,458$ 290,501,105$ 13,640,647$ 4.9 %Research 78,550,132 62,346,983 96,815,508 34,468,525 55.3 %Public Service 9,714,005 5,010,610 7,639,342 2,628,732 52.5 %Academic Support 79,162,436 92,204,599 96,883,023 4,678,424 5.1 %Student Services 50,640,946 51,529,930 52,939,246 1,409,316 2.7 %Institutional Support 54,517,364 60,236,867 61,318,807 1,081,940 1.8 %Operation & Maintenance of Plant 78,679,345 83,439,957 85,101,101 1,661,144 2.0 %Scholarships & Fellowships 90,837,876 100,397,778 99,444,423 (953,355) (0.9) %

Subtotal Expenditures 677,081,686$ 732,027,182$ 790,642,555$ 58,615,373$ 8.0 %Mandatory Transfers 5,498,177 738,454 738,454 Non-Mandatory Transfers 61,619,205 15,238,006 (42,403,818) (57,641,824) (378.3) %





TOTALSRevenues 982,600,576$ 988,512,563$ 989,537,189$ 1,024,626$ 0.1 %Expenditures and Transfers

Expenditures 859,472,563$ 919,622,857$ 978,443,923$ 58,821,066$ 6.4 %Mandatory Transfers 42,495,076 39,791,964 39,791,964Non-Mandatory Transfers 78,313,198 29,097,742 (28,698,698) (57,796,440) (198.6) %

Total Expenditures & Transfers 980,280,837$ 988,512,563$ 989,537,189$ 1,024,626$ 0.1 %Fund Balance Addition/(Reduction) 2,319,739$

Knoxville includes UT Knoxville and the UT Space Institute.

B-24

57


MartinFY 2019-20 Revised Budget Summary




Tuition & Fees 59,407,910$ 61,770,838$ 62,668,190$ 897,352$ 1.5 %State Appropriations 34,410,197 36,128,697 36,460,897 332,200 0.9 %Grants & Contracts 173,897 241,400 241,400 Sales & Service 4,293,911 3,521,396 4,114,996 593,600 16.9 %Other Sources 728,374 771,000 807,236 36,236 4.7 %

Total Revenues 99,014,288$ 102,433,331$ 104,292,719$ 1,859,388$ 1.8 %

Expenditures and TransfersInstruction 42,071,578$ 44,888,286$ 45,689,021$ 800,735$ 1.8 %Research 296,320 177,566 165,756 (11,810) (6.7) %Public Service 810,216 809,572 882,314 72,742 9.0 %Academic Support 10,202,385 11,053,882 10,880,102 (173,780) (1.6) %Student Services 14,128,305 13,161,179 14,273,191 1,112,012 8.4 %Institutional Support 6,795,789 7,252,122 7,301,531 49,409 0.7 %Operation & Maintenance of Plant 10,795,919 11,476,246 12,080,172 603,926 5.3 %Scholarships & Fellowships 12,929,612 11,826,663 13,081,573 1,254,910 10.6 %

Subtotal Expenditures 98,030,124$ 100,645,516$ 104,353,660$ 3,708,144$ 3.7 %Mandatory Transfers 561,528 580,866 552,276 (28,590) (4.9) %Non-Mandatory Transfers 3,105,015 1,206,949 (613,217) (1,820,166) (150.8) %

Total Expenditures & Transfers 101,696,667$ 102,433,331$ 104,292,719$ 1,859,388$ 1.8 %Fund Balance Addition/(Reduction) (2,682,379)$

AUXILIARIESRevenues 9,951,260$ 10,546,410$ 10,124,296$ (422,114) (4.00) %Expenditures and Transfers

Expenditures 6,014,338$ 7,188,617$ 6,786,435$ (402,182) (5.6) %Mandatory Transfers 2,661,004 2,659,768 2,659,768 Non-Mandatory Transfers 1,444,174 698,025 678,093 (19,932) (2.9) %

Total Expenditures & Transfers 10,119,516$ 10,546,410$ 10,124,296$ (422,114) (4.0) %Fund Balance Addition/(Reduction) (168,256)$


Expenditures 104,044,462 107,834,133 111,140,095 3,305,962 3.1 %Mandatory Transfers 3,222,532 3,240,634 3,212,044 (28,590) (0.9) %Non-Mandatory Transfers 4,549,189 1,904,974 64,876 (1,840,098) (96.6) %

Total Expenditures & Transfers 111,816,183$ 112,979,741$ 114,417,015$ 1,437,274$ 1.3 %Fund Balance Addition/(Reduction) (2,850,635)$

B-25

58


Health Science CenterFY 2019-20 Revised Budget Summary




Tuition & Fees 94,195,769$ 88,268,996$ 88,493,645$ 224,649$ 0.3 %State Appropriations 154,589,424 162,078,924 162,458,524 379,600 0.2 %Grants & Contracts 17,068,837 15,191,893 16,921,624 1,729,731 11.4 %Sales & Service 20,125,890 18,784,736 19,070,952 286,216 1.5 %Other Sources 1,197,809 1,055,920 1,055,920

Total Revenues 287,177,729$ 285,380,469$ 288,000,665$ 2,620,196$ 0.9 %

Expenditures and TransfersInstruction 127,019,270$ 137,510,160$ 148,623,440$ 11,113,280$ 8.1 %Research 17,354,992 5,429,205 12,588,041 7,158,836 131.9 %Public Service 128,134 351,000 439,797 88,797 25.3 %Academic Support 58,976,438 55,641,218 60,721,067 5,079,849 9.1 %Student Services 7,023,128 6,724,948 7,390,187 665,239 9.9 %Institutional Support 32,081,659 29,219,174 32,220,684 3,001,510 10.3 %Operation & Maintenance of Plant 39,708,373 32,900,340 34,217,447 1,317,107 4.0 %Scholarships & Fellowships 7,432,913 7,153,331 7,867,651 714,320 10.0 %

Subtotal Expenditures 289,724,907$ 274,929,376$ 304,068,314$ 29,138,938$ 10.6 %Mandatory Transfers 5,846,723 5,673,193 5,673,193 Non-Mandatory Transfers (3,345,171) 4,777,900 (21,708,240) (26,486,140) (554.3) %

Total Expenditures & Transfers 292,226,459$ 285,380,469$ 288,033,267$ 2,652,798$ 0.9 %Fund Balance Addition/(Reduction) (5,048,730)$ (32,602)$

AUXILIARIESRevenues 1,767,336$ 1,980,402$ 2,405,657$ 425,255$ 21.50 %Expenditures and Transfers

Expenditures 1,357,833 1,764,506 2,189,761 425,255 24.1 %Mandatory Transfers 325,960 215,896 215,896 Non-Mandatory Transfers 106,335

Total Expenditures & Transfers 1,790,128$ 1,980,402$ 2,405,657$ 425,255$ 21.5 %Fund Balance Addition/(Reduction) (22,791)$


Expenditures 291,082,739$ 276,693,882$ 306,258,075$ 29,564,193$ 10.7 %Mandatory Transfers 6,172,683 5,889,089 5,889,089 Non-Mandatory Transfers (3,238,836) 4,777,900 (21,708,240) (26,486,140) (554.3) %

Total Expenditures & Transfers 294,016,586$ 287,360,871$ 290,438,924$ 3,078,053$ 1.1 %Fund Balance Addition/(Reduction) (5,071,521)$ (32,602)$

B-26

59


Institute of AgricultureFY 2019-20 Revised Budget Summary




Tuition & Fees 12,844,170$ 12,859,904$ 12,902,961$ 43,057$ 0.3 %State Appropriations 87,896,764 91,861,364 92,111,664 250,300 0.3 %Grants & Contracts 5,513,084 4,263,306 4,350,205 86,899 2.0 %Sales & Service 28,367,381 27,587,976 27,836,515 248,539 0.9 %Other Sources 17,041,596 16,440,158 16,584,356 144,198 0.9 %

Total Revenues 151,662,995$ 153,012,708$ 153,785,701$ 772,993$ 0.5 %

Expenditures and TransfersInstruction 34,377,260$ 41,054,189$ 39,837,307$ (1,216,882)$ (3.0) %Research 39,425,408 41,251,589 43,266,765 2,015,176 4.9 %Public Service 46,441,257 52,987,262 53,206,770 219,508 0.4 %Academic Support 9,680,613 9,180,536 9,298,755 118,219 1.3 %Student ServicesInstitutional Support 2,826,322 2,731,728 2,745,702 13,974 0.5 %Operation & Maintenance of Plant 3,512,666 3,705,655 3,763,967 58,312 1.6 %Scholarships & Fellowships 50,951 115,008 115,008

Subtotal Expenditures 136,314,476$ 151,025,967$ 152,234,274$ 1,208,307$ 0.8 %Mandatory TransfersNon-Mandatory Transfers 22,003,375 2,178,119 1,742,805 (435,314) (20.0) %

Total Expenditures & Transfers 158,317,851$ 153,204,086$ 153,977,079$ 772,993$ 0.5 %Fund Balance Addition/(Reduction) (6,654,857)$ (191,378)$ (191,378)$

B-27

60


Institute for Public Service TotalFY 2019-20 Revised Budget Summary




Tuition & FeesState Appropriations 13,187,187$ 13,717,887$ 13,758,487$ 40,600$ 0.3 %Grants & Contracts 291,771 179,178 179,178 Sales & ServiceOther Sources 13,038,085 12,636,422 12,581,922 (54,500) (0.4) %

Total Revenues 26,517,043$ 26,533,487$ 26,519,587$ (13,900)$ (0.1) %

Expenditures and TransfersInstructionResearchPublic Service 22,103,838$ 22,883,182$ 22,612,378$ (270,804)$ (1.2) %Academic Support 236,191 223,662 225,994 2,332 1.0 %Student ServicesInstitutional Support 916,675 868,508 878,174 9,666 1.1 %Operation & Maintenance of PlantScholarships & Fellowships

Subtotal Expenditures 23,256,705$ 23,975,352$ 23,716,546$ (258,806)$ (1.1) %Mandatory TransfersNon-Mandatory Transfers 3,005,931 2,323,418 2,650,841 327,423 14.1 %

Total Expenditures & Transfers 26,262,636$ 26,298,770$ 26,367,387$ 68,617$ 0.3 %Fund Balance Addition/(Reduction) 254,408$ 234,717$ 152,200$

B-28

61


System AdministrationFY 2019-20 Revised Budget Summary




Tuition & FeesState Appropriations 5,654,017$ 16,083,817$ 16,109,917$ 26,100$ 0.2 %Grants & ContractsSales & ServiceOther Sources 28,888,200 28,415,000 28,513,963 98,963 0.3 %

Total Revenues 34,542,217$ 44,498,817$ 44,623,880$ 125,063$ 0.3 %

Expenditures and TransfersInstructionResearchPublic ServiceAcademic SupportStudent ServicesInstitutional Support 55,426,495$ 56,050,709$ 57,363,016$ 1,312,307$ 2.3 %Operation & Maintenance of PlantScholarships & Fellowships

Subtotal Expenditures 55,426,495$ 56,050,709$ 57,363,016$ 1,312,307$ 2.3 %Mandatory Transfers 133,161 130,000 130,000 Non-Mandatory Transfers (23,033,679) (11,681,892) (12,349,612) (667,720) (5.7) %

Total Expenditures & Transfers 32,525,977$ 44,498,817$ 45,143,404$ 644,587$ 1.4 %Fund Balance Addition/(Reduction) 2,016,240$ (519,524)$

B-29

62

2020 Winter Meeting Board of Trustees - FY 2020-21 Tuition and Fees for UT Health Science Center - Action/Roll-Call Vote

AGENDA ITEM SUMMARY


Item: FY 2019-20 Tuition and Fees for the Health Science Center

Type: Action

Presenter: Bill Rhodes, Chair of the Finance and Administration Committee

The Health Science Center presented its proposed FY 2020-21 student tuition and fee schedules to the Finance and Administration Committee for its consideration.

UTHSC proposes reducing out-of-state tuition and fees of three programs and both in-state and out-of-state tuition and fees of one program. Tuition and fees for all other programs will remain unchanged. A schedule of proposed FY 2020-21 tuition and fee levels for all programs are on the following page.

Board Action

The Chair will call for a motion to recommend adoption of the following Resolution by the Board of Trustees.

Resolved: The Board of Trustees hereby approves the FY 2020-21 tuition and fees for the UT Health Science Center as presented in the meeting materials, which shall be attached to this Resolution following adoption.

63

2020 Winter Meeting Board of Trustees - FY 2020-21 Tuition and Fees for UT Health Science Center - Action/Roll-Call Vote

Health Science CenterFY 2020-21 Annual Tuition and Fees

Tuition

FY 2019-20 FY 2020-21 Amount0% CHANGE

Percent

IN-STATEGraduate Health Sciences 10,894$ 10,894$ -$ 0.0%

MS Pharmacology 16,712 16,712 0 0.0%

Medicine Doctor of Medicine 34,566 34,566 0 0.0%Physician Assistant 22,924 22,924 0 0.0%

Dentistry General DDS 30,388 30,388 0 0.0%Transitional DDS 73,028 73,028 0 0.0%Dental Hygiene Bachelor of Scien 9,988 9,988

Pharmacy 22,370 22,370 0 0.0%

Nursing Bachelors 12,705 12,705Graduate 18,698 18,698 0 0.0%

Health Professions Bachelor of Science

Medical Technology 7,990 7,990 0 0.0%Audiology & Speech Pathology 11,110 ---- ---- ----

Masters in Cytopathology Practic 13,814 9,900 (3,914) -28.3%DPT / MOT 13,814 13,814 0 0.0%Dr. Audiology / MS Speech Path 18,820 18,820 0 0.0%MS Clin Lab Sci 10,068 10,068 0 0.0%

OUT-OF-STATEGraduate Health Sciences 16,542$ 16,542$ -$ 0.0%

MS Pharmacology 25,140 25,140 0 0.0%

Medicine Doctor of Medicine 67,658 60,490 (7,169) -10.6%Physician Assistant 38,962 38,962 0 0.0%

Dentistry General DDS 69,148 69,148 0 0.0%Transitional DDS 73,028 73,028 0 0.0%Dental Hygiene Bachelor of Scien 19,976 19,976 0 0.0%

Pharmacy 27,374 27,374 0 0.0%

Nursing Bachelors 36,930 36,930 0.0%Graduate 43,538 43,538 0 0.0%

Health Professions Bachelor of Science

Medical Technology 26,156 12,000 (14,156) -54.1%Audiology & Speech Pathology 29,300 ---- ---- ----

Masters in Cytopathology Practic 31,796 14,400 (17,396) -54.7%DPT / MOT 31,796 31,796 0 0.0%Dr. Audiology / MS Speech Path 43,396 43,396 0 0.0%MS Clin Lab Sci 28,008 14,400 (13,608) -48.6%

* Bachelor of Audiology & Speech PathologyThis is a joint degree with UTK where UTHSC will teach the 4th year of the Bachelor's program but charge the

UTK tuition rate.

University Fees are set by the Board of Trustees and are subject to change at any regular or called meeti

64

2020 Winter Meeting Board of Trustees - Amendments to the Bylaws - Action/Roll-Call Vote

AGENDA ITEM SUMMARY


Item: Proposed Bylaw Amendments

Type: Action

Background

Amendments to the following provisions of the Bylaws have been approved by the Executive Committee and are being recommended for consideration by the Board of Trustees.

1. Article II: Officers of the Board, Section 2.2: Election of Chair

A non-substantive change to clarify the sentence pertaining to the number of consecutive terms that a Chair may serve. The revision also provides consistency with similar language that appears for the number of consecutive terms that a committee chair may serve, which appears in Article IV, Section 4.13(a).

2. Article IV: Committees, Section 4.9: Composition of Standing Committees – General Requirements

Under Section 4.9(b), the President serves as an ex officio, voting member of the Finance and Administration Committee and the Education, Research, and Service Committee. Although the President is not a member of the Board of Trustees, this provision provides the President with voting rights on the named Standing Committees.

To promote open and regular communication between the President and members of the Board of Trustees and compliance with the Tennessee Open Meetings Act, Interim President Boyd has requested that the President be removed from serving as an ex officio, voting member of the Standing Committees. Accordingly, the proposed revision to the Bylaws deletes Section 4.9(b) in its entirety.

The proposed resolution provides authority for the Secretary to make conforming changes to the Committee Charter to reflect this change and to allow for the President to have a standing invite to the meetings of these Standing Committees.

65


3. Article V: Meetings of the Committee

Article IV of the Bylaws permits a Standing Committee of the Board to appoint the members and chairs of any subcommittee it deems necessary or advisable from time to time. As presently written, Article V provides requirements for the conduct and operations of Standing and Special Committees of the Board. The proposed revisionsto this Article clarify the applicable requirements for any meetings of a subcommittee.

The proposed amendments to the Bylaws follow this memorandum.

The Chair will ask a member of the Board to make a motion to approve the following Resolution.

Resolved:

1. On the recommendation of the Executive Committee, the Board of Trustees hereby adopts the proposed amendments to the Bylaws of the Board as presented at the meeting, which shall be attached to this Resolution after adoption; and

2. The Secretary is authorized to make format changes and any necessary grammatical, spelling, or other technical corrections to the Bylaws before publication.

3. The Secretary is also authorized to make conforming changes to the Committee Charters approved by the Board for the Finance and Administration Committee and the Education, Research, and Service Committee, which revisions shall reflect that the President shall be invited to attend the meetings of such Standing Committees.

66


PROPOSED REVISIONS TO THE BYLAWS OFTHE UNIVERSITY OF TENNESSEE

BOARD OF TRUSTEES

ARTICLE IIOfficers of the Board

Section 2.2 Election of the Chair. The Chair shall be elected at the Annual Meeting to serve a two-year term, beginning July 1 of the year of election and ending June 30 of the second succeeding year, and until a successor is elected. The Chair may be elected to a maximum ofserve no more than three (3) consecutive terms except upon an affirmative roll-call vote of a majority of the total voting membership of the Board. In the event of a vacancy in the office of Chair before expiration of the term, a special meeting of the Board will be called for the purpose of electing a successor to fill the unexpired term.

ARTICLE IVCommittees

Section 4.9(b) President of the University as an Ex Officio Member of Two Standing Committees. The President shall be an ex officio, voting member of the Finance and Administration Committee and the Education, Research, and Service Committee but shall be counted for quorum purposes only when present.

ARTICLE VMeetings of Committees

Section 5.1 Required. Standing committees shall meet as often as necessary to carry out their responsibilities but at least once annually. Special committees and subcommittees shall meet as often as necessary to carry out their responsibilities until the purpose for which they were established has been accomplished or until the end of any term established by the Board or the standing committee, whichever occurs first.

Section 5.2 Call of Meetings. A meeting of any standing or special committee may be called by the Chair of the Board, the President, the committee chair, or by the Secretary upon the written request of two members of the committee or subcommittee. A meeting of any subcommittee may be called by the Chair of the Board, the President, the committee chair, or the subcommittee chair, or by the Secretary upon the written request of two members of the subcommittee.

Section 5.3 Location of Meetings. Committee and subcommittee meetings may be held at any location in the State of Tennessee.

Section 5.4 Notice of Meetings. Written notice of all meetings shall be given to all members of the standing committee or, special committee, or subcommittee. The Secretary shall give notice of meetings of the Executive Committee to all members of the Board. At least five (5) days’ notice shall be given when feasible, but less notice may be given when there is a need for urgent action. Notice may be delivered by postal mail, courier, electronic mail, or facsimile transmission. If written notice is not feasible, by reason of urgency or other exigent circumstance, notice may be given by telephone. As required by Tennessee Code Annotated § 8-44-103(a) and (b), adequate public notice shall be given of any standing orcommittee, special committee, or subcommittee meeting.

67


Sections 5.5 Meetings Open to the Public. Meetings of standing committees and, special committees, and subcommittees authorized to make decisions for or recommendations to the Board shall be open to the public except as authorized by a statutory or judicially recognized exception to the Tennessee Open Meetings Act.

Section 5.6 Quorum. A majority of the voting members of each standing committee or, special committeeor subcommittee shall constitute a quorum. In the absence of a quorum, those present may adjourn the meeting until a quorum is present.

Section 5.7 Action of a Committee. or Subcommittee. The action of a majority of the quorum of voting committee members present at any meeting shall be the action of a committee or subcommittee, except as otherwise provided in these Bylaws, Board policy, or statute.

Section 5.8 Motions and Resolutions. In the interest of clarity, to prevent misunderstanding, and to secure accuracy of record, each motion or resolution (except informal or parliamentary motions) shall be presented in writing at the time the motion or resolution is made, except that the committee or subcommittee chair may grant a member the privilege of reducing a motion to writing and presenting it to the Secretary before adjournment of the meeting. The name of the moving and seconding member need not be recorded in the minutes of the meeting.

Section 5.9 Manner of Voting. All votes in a committee or subcommittee meeting shall be by voice vote or public ballot; provided that a roll-call vote shall be taken on any motion if a voting committee member present at the meeting requests a roll-call vote before a voice vote is taken or demands a roll-call vote before the Chairchair announces the result of a voice vote. Secret votes, secret ballots, secret roll calls, and proxy votes are not allowed.

Section 5.10 Agenda. An agenda shall accompany the notice of every meeting of a standing committee or,special committee, or subcommittee when feasible, but when not feasible, the notice shall state the purpose or purposes for which the meeting is called. The agenda shall list in outline form each item to be considered at the meeting. Items not set forth on the agenda or in the notice may be considered only upon an affirmative roll-call vote of a majority of the total voting membership of the committee. or subcommittee.Items not stated in the call of a special meeting may not be considered at the meeting.

Section 5.10(a) Consent Agenda of Standing Committees. Standing committee chairs, in consultation with the Secretary, may designate routine and noncontroversial items to be included on a consent agenda for the committee; provided that the following items may not be placed on a committee consent agenda: (i) adoption, amendment, repeal, or suspension of the Bylaws in whole or in part; (ii) the annual operating budget, including any student tuition and fee proposals for which Board approval is required; (iii) funding requests for capital outlay and capital maintenance projects; and (iv) revenue or institutionally funded capital projects. The following are examples of items that will routinely be placed on a committee consent agenda: approval of minutes, approval of signatory authority for bank and investment accounts; sale of gift property at or above the appraised value; grant of easements and rights-of-way; and ratification of quasi-endowments.

Section 5.10(b) Consent Agenda Procedures. Consent agenda items shall be separately identified on the committee agenda, and before calling for a motion to approve, the committee chair shall ask if any member of the committee wants to remove an item from the consent agenda. Requests for clarification or other questions about an item on the consent agenda must be presented to committee staff before the meeting. An item will not be removed from the consent agenda solely for clarification or other questions. If any committee member asks that an item be removed from the consent agenda, the item will be separately considered and voted on by the committee. If the item is approved by the committee

68


and requires approval by the full Board, it will be placed on the consent agenda for the full Board meeting. If there is no request to remove an item from the consent agenda, the consent agenda shall be voted on by a single motion, and if the motion carries, all items will go forward to the consent agenda of the full Board meeting.

Section 5.11 Minutes. The Secretary shall be responsible for ensuring that minutes are prepared and maintained for all meetings of standing committees and, special committees, and subcommitteesauthorized to make decisions for or recommendations to the Board, and the minutes shall be provided to all members of the committee. The Secretary shall provide minutes of Executive Committee meetings to all members of the Board.

[Note: Presented without statutory annotations and other footnotes.]

69

2020 Winter Meeting Board of Trustees - Annual Performance Review of Interim President Boyd

AGENDA ITEM SUMMARY


Item: Chair’s Report on the President’s Annual Performance Review

Type: Action

Board policy delegates to the Chair responsibility to organize and conduct an annual review of the president’s performance, subject to the Board’s ultimate authority to approve or modify the Chair’s assessment.

The following report by the Chair includes his written assessment of Interim President Boyd’s performance and outlines various performance goals for 2020. Interim President Boyd’s self-assessment and other supporting materials are appended to the Chair’s report. The Chairs of the Audit and Compliance Committees and the Finance and Administration Committee have reviewed the Chair’s report and have indicated their concurrence with the report.

Because the Executive Committee is not meeting in conjunction with this meeting, and because of the importance of this item, the Chair has placed it on the agenda of the full Board meeting for presentation, discussion, and action.

Board Action

The Chair will call for a motion to recommend adoption of the following Resolution by the Board of Trustees.

Resolved: The Board of Trustees hereby (i) accepts the Chair’s assessment of Interim President Boyd’s performance, and (ii) approves the performance goals established for 2020.

70

THE UNIVERSITY OF TENNESSEE SYSTEM BOARD OF TRUSTEES

MEMORANDUM

TO: Members of the Executive Committee of the Board of Trustees

FROM: John Compton, Chair of the Board

DATE: January 29, 2020

SUBJECT: Annual Performance Review of Interim President Randy Boyd

As announced at the Fall 2019 meeting of the Board of Trustees and in accordance with the Board of Trustees Policy nn Presidential Performance Reviews (BT0004), I have conducted an annual review of Interim President Boyd's performance. Trustee Amy Miles, Chair of the Audit and Compliance Committee, and Trustee Bill Rhodes, Chair of the Finance and Administration Committee, participated in the review process. Roth Committee Chairs have been provided a copy of this report and advised of the opportunity to submit a separate written assessment of the President's performance.

I. The Review Process

A. Interim President Boyd submitted a self-assessment (See Attachment 1 ). A copy of the selfassessment was distributed to all members of the Iloard of Trustees on January 2, 2020.

B. The Chief Financial Officer prepared a report dated December 5, 2019 on the status of accounts under the control of the President (See Attachment 2), begirming on November 22, 2018 (first day in office) through November 21, 2019. The report states that accounts under the President's control were within budget as of the end of the fiscal year(June 30, 2019) and as of November 2019.

C. The views of constituencies, Chancellors and other senior administrative staff, and Trustees were solicited by an electronic survey. Over 100 individuals participated in the survey, representing an aggregate response rate of almost 90%. The electronic survey produced high marks overall for Interim President Boyd, with approximately 94.2% of respondents rating his performance as exceeding expectations (See Attachment 3). Overall, he received the highest ratings for providing visionary leadership, demonstrating integrity, providing leadership to ensure the University maintains highly effective relationships with the state legislature and state officials, and serving as an effective spokesperson for public higher education in Tennessee.

D. I conducted individual interviews with the Chancellors of each of the campuses. Senior administrative staff were offered the opportunity to request a personal interview; no requests were made.

Page -1-


71

E. As required under the Board Policy , I discussed Interim President Boyd's performance wi1h Tennessee Speaker of the House of Representatives Cameron Sexton and Lieutenant Governor and Speake r of the Senate Randy McNally . Upon the recommendation of Lt. Governor McNally, I spoke wi1h Senator Dolores Gresham. who serves as tl:e Chair of the Senate ' s Standing Committee on Education. The reviews of Interim President Royd's performance were very positive. It was noted that, through his efforts to engage, listen, and communicate reg·.,larly, Interim President Boyd has been e ffective in improving the perception of the Universi1y and in building relation ships with members of the state legislature. His ab ility to think big, resolve issues, and be innovative were lis lecl among his strongest leade,·ship qualities . Appreciat ion was expressed for Interim President Boyd 's commitment to being active across the state, advancing the Universi:y's relationship with !he Oak Ridge National Laboratory, and considering new ways for the University to serve as a resource for the state and not exist solely as an ent ity of the state.

F. On January 17. 2020, al 1he meet ing of the Executive Committee of the Board of Trustees , Interim President Boyd presented his proposed goa ls for 2020 (See Attachment 4). The goals include a mix ofq ua litati,,e and quantitative measures, along with stretch goals the full efforts of which may not be fully realized for several years. Members of the Executive Committee expressed their support of the goa ls identified , a lthough a concern was raised as to number of goals presented. In response, Interim Prcsiden1 Boyd expressed hisc cnfidence in lhe team and their abili ty to execute on the goals.

G. I met with Jnlerim Pres iden l Boyd o n January 24, 2020 to discuss his performance and goals Trustees Miles and Rhode s participated as o bservers .

JI. ReviewPeriod and Performance

This performance review covers the perio:I from Novemb er 22, 2018, when Interim President ,1 Boyd look office, through December 31, 2019. In addi tion to the constituent feedback noted above, Interim President Boyd's per formance was measured against tl·e goals identified in the Strategic Plan 2019-2025 (See https://tennessee.edu/plan).

The Strategic Plan identifies the following five goa ls:

Goal I - Enhancing Educational Exce llence ► Goal 2 - Expandi ng Research Capac ities ► Goal 3 - Fostering Outreach and Engagement

Goal 4 - Ensu ring Workforce and Administrative Excellence Goal 5 - Advocating for UT

Interim President Boyd's self-assessment (See Attachment I) iden1ifies accomplishments by goal area a nd provides an in-depth assessme nt of results for the review period. Fer purposes of this report, I wou ld like to share a few highlights.

Page


72

Goal 1 - Enhancing Educational Excellence

Access and Affordability. Of the many items that have heen unde11aken across the University to Enhance Educational Excellence, one of the most significant actions has been the creation of UT Promise. This new scholarship program addresses matters of critical concern - access and affordability. The UT Promise is a bold step toward eliminating financial barriers to admission and reducing financial burdens for enrolled students. Importantly, it has been undertaken by all four campuses and recognizes the University's full commitment to all Tennesseans.

Randy worked collaboratively with the Chancellors in the design of the program, including setting household income qualification thresholds. The leadership demonstrated by Interim President Boyd in establishing and promoting this new initiative has heen remarkable. It has been well-received across the state, in large part due to the direct efforts of Interim President Boyd's to promote the program. For Fall 2020, more than 4,200 applications submitted by high school seniors, and over 2,000 current UT students have applied. Although the collective cost of this new scholarship is wilhin the means of the respective campuses' budgets, he has championed the funding of an endowment in order to provide financial resources to ensure the long-term success of the program, with over $20 million raised since its announcement.

Student Success. Other priorities articulated under the Strategic Plan include increasing the number of UT Graduates and Enhancing Student Success. In this regard, enrollment grew to an all-time high of 51,582 students, exceeding the FYI 9 benchmark figure; baccalaureate degrees conferred exceeded the state master plan by more than 443 degrees (8,395 unduplicated degrees). Across the system the number of degrees awarded grew to 12,066, representing 99. 76% of the FYI 9 benchmark figure. Randy and his team recognize that our 6-year graduation rate has room for improvement as measured against peer institutions. Freshman retention improvement is a key step in improving overall graduation rates.

Goal 2 Expanding Research Capacities

A number of initiatives were undertaken to raise the profile of UT in terms of research, which are anticipated to leverage existing and/or new collaborations. Examples of these efforts include the reunification of UTIA/UTK, the establishment of the Oak Ridge Institute, and the creation of One UT Innovation and Collaboration Grants.

In terms of peer rankings, the reunification of UTIA/UTK will vastly improve our standing among "R1" doctoral universities (those considered to have the "highest research activity" as determined by the Carnegie Classification of Institutions of Higher Education). Ensuring the successful implementation of the reunification of UTIA/UTK is of critical importance given the increasingly competitive markelplace for attracting and retaining top-tier faculty and student talent.

The Oak Ridge Institute forges a new path for increased collaboration and aligmnent between the UT and Oak Ridge National Laboratory (ORNL). It is expected to result in 120 new faculty positions, nearly 400 new graduate students, and generate more than $150 million in annual research expenditures within seven years. Interim President Boyd has set a number nf ambitious goals for the Institute, including attracting $100 million of funding. He will need to stay close to state and federal legislative officials and key budgetary decision-makers to advocate for the seed funding and future, ongoing support necessary for the realization of the full potential of the Institute.

Page -3-


73

The One UT Innovation and Collaboration Grants are intended to promote collaboration across units, campuses and institutes to advance innovative ideas that support the University's three key mission areas - student success, research, and outreach and engagement. As this is a new initiative that has the opportunity to be a model for future collaborative efforts across the UT System, the launch of this program, with clear, measurable outcomes and demonstrable, sustainable impacts is important.

Goal 3 - Fostering Outreach and Engagement

An increased emphasis has been placed on the University's outreach and public service, especially the programming provided through UTIA and JPS. Interim President Boyd has spent time listening and learning about the work of the extension offices and the various public service centers. A UT Commission on Agriculture was launched for the purpose of collaborating and aligning efforts across the agriculture sector to hear from the people, communities and industries served. In supportof new outreach efforts, the University convened a Summit for Opioid Addiction and Response (SOAR) that brought together more than 700 leaders from across the state and nation to share ideas and information to advance efforts to combat this epidemic. Additionally, Randy has advocated for increased state funding to further support the extension offices across the state.

Goal 4 - Ensuring Workforce and Administrative Excellence

As Interim President, Randy was instrumental in the selection and appointment of Dr. Donde Plowman to serve as the ninth Chancellor of the University of Tennessee, Knoxville. A number of other key hires have been made under his leadership including the appointments of Brian Daniels, Chief Audit and Compliance Officer, and Kerry Witcher, President of the UT Foundation, along with the selection of Dr. Brian Dickens, Chief Human Resources Officer.

From an operations standpoint, several initiatives were undertaken to improve the efficiency and effectiveness of the University, including the establishment of the Taskforce for Effective Administration and Management (TEAM). Through the work ofTEAM, it is anticipated that a number of processes will be streamlined and standardized, which should eliminate redundancies and, in certain instances, lead to cost savings allowing for the redeployment of such funds in support of mission priorities.

The "system" vs the "campus" has been a longstanding cultural issue for UT. In an effort to address this issue, Randy has established the One UT Leadership Council, which brings together all 4 campus Chancellors, the Senior Vice President/Senior Vice Chancellor of UTIA, and the Director of ORNL, and, frequently, members of the UT System leadership team, for the purpose of improving alignment on common goals and providing a forum for open dialogue and commitment. The UT Promise, UTIA/UTK reunification, and the Oak Ridge Institute are three great examples of One UT becoming a reality. Further, the findings identified in the recent Performance Audit Report (Sunset Audit) and resulting corrective actions will comprehensive collaboration and buy-in across the entire UT system.

The voice of the faculty, staff and students has been a missing element in the overall assessment of our collective oppmtunities. Randy will be developing and implementing a feedback tool to ensure that annually or periodically feedback is heard and evaluated.

Page -4-


74

Goal 5 - Advocating for UT

As noted previously in the feedback from leadership in the legislature, Interim President Boyd has been very effective in improving the perception of the University, as well as the overall relationship with the legislature. The University is seen as a collaborative partner, focused on its mission of serving all Tennesseans through education, research and outreach. Under Interim President Boyd's leadership, Transparent UT was launched to provide greater and easier access to information for the University's faculty, staff, students and the communities it serves.

For FY19, the University had its third highest fundraising year in history (over $282 million in commitments), with the highest number of donors (64,632) in our history.

In connection with the Tennessee Comptroller's Performance Audit Rep01t, Interim President Randy Hoyd addressed the Tennessee Government Operations Joint Subcommittee on Education, Health and General Welfare and his advocacy efforts were successful in obtaining a recommendation for a four-year extension.

Championing Diversity & Inclusive Excellence

Interim President Boyd listened as part of the town hall meetings and discovered that the most expressed need for the UT Knoxville campus was to re-hire a campus diversity vice chancellor and to restore funding for the office. Interim President Boyd worked tirelessly to meet with legislators to explain the importance of supporting the success of all students. The office was funded within the first month following his appointment.

III. Goals for 2020

In light of the recent presentation made by Interim President Hoyd to the Executive Committee and the discussion surrounding such goals, I have accepted the proposed goals for 2020 (See Attachment 1), subject to any final comments and recommendations agreed upon by the full board membership at the upcoming Winter 2020 meeting.

IV. Evaluation of Overall Performance as Chief Executive Officer of tlte UT System

Randy has had an excellent first year as Interim President. He addressed key stakeholder issues immediately upon taking the role. He worked tirelessly with legislature to listen to concerns and take action. Consistently across all stakeholder feedback was the recurring theme that our relationships with the Tennessee legislature and state and federal governmental officials has never been better. He has brought together a collective sense of being a member of a larger "Team" across all the campuses, institutes, extension offices and system staff. He has been visible to all campuses and met with faculty in key forums. And, he championed three major initiatives (UT Promise, UTINUTK reunification, and Oak Ridge Institute) that should be legacy defining.

Page -5-


75

Interim President Boyd's strengths as a leaderof the UT Systeminclude:

Visionary Leader ► Empowers People to Be Better and Think Bigger ► Passion for UT, which includes serving in voluntory/unpaidcapacity

Willingness to Engage with all Stakeholders;Takes feedback well Govenu11e11t Relations Advocate, with strong presence in Nashville and home districts

His strengths also amplify areas for improvement:

Shared Governance Continue to strengthen relationships with faculty and students. Pace decisicns to solicit and address constituency feedback to foster even greater collaboration. Strategic Plan-F unherdeve loprnent of appropriate benchmarks, key performance indicatorsand other metrics to measure outcomes.

Randy has worked well with the Beard of Trustees. He reaches out when needed and is open to feedback. We look forward to working with Randy in 2020. We thank him for selfflessnessand dedication to our University.

Respectfullysub111ittcd,

John Compton, Chair

Supporting Materials:

Attachment I Self Assessment Attachment 2 Review of Financial Accounts Attachment3 Cons:ituent Survey Results At1achment 4 - 2020 Objectives Strategic Plan - httos;//tennessee.edu/plan/


76

Attachment 1

Self-Assessment and Progress on 2019 Goals Interim President Randy Boyd

It is such an honor to serve the University of Tennessee and the great state of Tennessee which it serves. I'm incredibly proud of the accomplishments we have made, as a team, during the past year. I am convinced, more so than ever, that there is no better time in the University of Tennessee's history than now. As I look back on the past year, I am encouraged by all that has been accomplished and energized about what's to come. I want to thank all the men and women, faculty, students and staff, and all the legislators, alumni and supporters who made all of this possible. Also, I thank them for the honor of serving this great enterprise.

Goal 1 - Enhancing Educational Excellence

• Created UT Promise. It is critically important that we do our part to be a ladder up for the middle and working classes. It is who we are, and it is central to our land-grant mission. To do so, we announced UT Promise in March, the first statewide access program of its kind, wherein all four campuses joined together demonstrating our new One UT culture. I traveled the state in September and October to promote the scholarship to students at 14 high schools. Currently UT Promise has more than 3,790 first-time, full-time freshmen applicants and more than 1,000 current UT student applicants. We launched an endowment to support UT Promise, which has raised more than $21.5 million to date.

• Enrollment. Total enrollment grew 1.5 percent to an all-time high of 51,582 across all UT campuses; baccalaureate degrees conferred exceeded the state master plan by 443 degrees (8,395 unduplicated degrees). Across the system, we awarded 12,065 degrees, up more than 200 over last year. Campuses have implemented initiatives to continue to grow enrollment and attract new student populations. Student success remains a top priority as campuses work to enhance first-year retention and improve four-year and six-year graduation rates.

• Funding and Leadership for Diversity on the UT Knoxville Campus. During my initial town hall meetings, the most expressed need on the UT Knoxville campus was to re-hire a campus diversity vice chancellor and restore funding for that office. I met with 41 different legislators and various levels of state leadership to explain the need to support student success of all students, and obtained agreement. UT Knoxville hired Tyvi Small as interim vice chancellor (this fall the interim was removed) and funded the office in my first month on the job.

• UT Academic and Student Affairs Summit on Mental Health and Wellness. More than 100 people from across the UT System gathered to discuss strategies to improve mental health and wellbeing for UT students. Attendees included chief academic officers, vice chancellors, deans, faculty, and staff; student government representatives from each UT campus; and representatives from the Tennessee Higher Education Commission, Oak Ridge National Laboratory and Tennessee Department of Mental Health and Substance Abuse Services.

Page 1


77

David Arnold, National Association of Student Personnel Administrators assistant vice president for health, safety and well-being initiatives, served as the keynote speaker.

• UT Teacher Preparation Convening. In September 2019, the University of Tennessee System hosted the first Teacher Preparation Convening, bringing together faculty and administrators from the UT campuses, state and local education leaders, lawmakers and other key stakeholders to discuss ways that new innovations and collaborations could better meet state needs for teachers. Each UT campus highlighted initiatives currently underway to prepare teachers to teach. Senate Education Chair Dolores Gresham; House Education Chair Mark White; House Speaker Pro Temp Bill Dunn; and then several members of the Governor's team participated.

Goal 2 - Expanding Research Capacities

• UTIA and UTK Reunification. Of all the 1862 land-grant institutions, UT was the only one with its flagship campus independent of the College of Agriculture, College of Veterinary Medicine, Experiment Stations and Extension. As a result, according to Fiscal Year 2017 National Science Foundation Higher Education Research and Development Survey data, UT Knoxville ranked 107th in research and UTIA ranked 170th among all universities. We were not structured in a way that allowed us to be competitive. This summer I asked the Board of Trustees to reunify these two critical campuses, which already shared the same faculty senate, faculty handbook, residence halls and facilities management. As a result, now together, the campuses rank 49th among public universities.

• Oak Ridge Institute at UT Established. In June, I asked the Board of Trustees to establish the Oak Ridge Institute (ORI) at the University ofTennessee. ORI will allow us to fully leverage the opportunity of the UT/Oak Ridge National Lab (0RNL) partnership and will forge a path of increased collaboration and alignment between UT and ORNL. We expect it to result in 120 new faculty positions, nearly 400 new graduate students, and generate more than $150 million in annual research expenditures within seven years. In addition to enhancing Tennessee's ability to provide talent to meet national needs, it will catapult UT into the top echelons of research institutions.

• OneUT Innovation and Collaboration Grants. With the work and inspiration of Linda Martin and Stacey Patterson, we established the OneUT Innovation and Collaboration Grants to foster collaboration and innovation in three key areas-student success, research, and outreach and engagement-across units, campuses and institutes. The UT System will invest up to $500,000 in each of the three categories, up to $1.5 million total.

Goal 3 - Fostering Outreach and Engagement

• Outreach to Extension. While I have made an intensive effort to regularly meet with all of our academic campuses including all five satellite campuses of UT Martin and the UT Space Institute, I also wanted to make sure I listened, and showed my appreciation, for our Extension offices. To date, I have visited 61 of them, and most say it is the first time a president has ever visited. My goal is to visit all 95 in early 2020, being the first president to do so.

Page 2


78

• Launched the UT Commission on Agriculture. The land-grant mission of UT Knoxville has always had serving the agricultural industry at its core. In order to serve, we need to understand and to understand, we need to listen. The more ways we can do so, the better we can deliver that mission. The UT Commission on Agriculture was created to help us listen, collaborate, and better align our efforts across the agriculture sector. All leaders who support agriculture at UT need to hear directly from the people, communities and industries we serve in order to provide the value they want, need and deserve. Our first meeting was held December 5 and was a great success.

• Hosted Summit for Opioid Addiction and Response (SOAR}. UT is uniquely positioned to identify the state's "grand challenges," such as the opioid addiction crisis, and convene the key stakeholders to work together to combat those challenges. More than 700 leaders from across the state and nation gathered in Knoxville to share ideas and information, make connections and make new plans to work together to combat this epidemic on our people, state and nation. We plan to continue and grow this initiative, with the goal of making Tennessee one of the least addicted, not the most.

Goal 4 - Ensuring Workforce and Administrative Excellence

• UT Knoxville Chancellor. After a national search, Donde Plowman was selected to serve as the ninth chancellor of the University of Tennessee, Knoxville in April. In her short time as chancellor, Chancellor Plowman has already made tremendous strides in bringing the campus together and helping ensure our faculty, staff and students are working and learning in a welcoming environment. I owe deep gratitude to UT Martin Chancellor Keith Carver who led the search committee, to the committee itself and all the dozens of others who participated in the selection process.

• UT Foundation President. Kerry Witcher was confirmed by the UT Board of Trustees in March 2019 as vice president for development and alumni affairs, and as president of the UT Foundation. The search was led by Tim Cross, senior vice president/senior vice chancellor for the University of Tennessee Institute of Agriculture, who did a great job putting forward four extremely good candidates, but it was hard to beat Kerry's proven track record.

• Other Key Hires. In addition, we recently completed a search for the chief human resources officer, naming Brian Dickens to the role. Brian Daniels was selected as the new chief audit and compliance officer and has done a tremendous job working with the Tennessee comptroller's office nn the Sunset Audit. We are in the process of hiring a rhief information officer to replace Les Matthews who retired, and a general counsel to replace Matthew Scoggins who transferred to be Chancellor Plowman's chief of staff. We have appointed Associate Vice President Mark Paganelli as interim treasurer to replace retiring Ron Maples.

• Launched TEAM. We must ensure work is done in the most efficient and effective manner between the UT System and its campuses and institutes. Therefore, the Taskforce for Effective Administration and Management (TEAM) was launched and is actively working to ensure efficiency and effectiveness as well as to make clear why things are done a particular

Page 3


79

way. More than 50 people from all campuses continue to be involved with this initiative. Thus far, the outcomes are greater collaborative leadership among system and institution leaders and greater standardization of process and services.

• One UT Culture and One UT Leadership Council. The biggest weakness in the UT System in my view has been how separate and unaligned campuses have been across the state, including lack of integration with ORNL. It has been my overriding objective to create a One UT culture. We have made great progress and the leaders are regularly thinking more about how to work together and share policies and initiatives. One mechanism we created to do this is the One UT Leadership Council. This includes the senior vice chancellor at UTIA, the director of ORNL, and all four campus chancellors, meeting in person for half-day each month. This personal communication has resulted in many new initiatives and a more cohesive, strategically aligned team and shared culture. We have made progress, but we have much work left to do.

• TVA Tower Move. After years of debate regarding the appropriate location of the System offices, we are negotiating a long-term lease in the TVA Tower. This will bring our staff together rather than being scattered around the city, dramatically improves their workspace and only costs $1 per square foot. This move frees space on the UT Knoxville campus and provides a more distinct separation between the System and the UT Knoxville campus.

• New Employee Benefits. To further our efforts to attract talented faculty and staff and become one of the best places to work in Tennessee, we are implementing two new employee benefits. First, to meet the needs of employees starting a family, we will grant up to six weeks of paid leave for new parents through birth or adoption. Secondly, in the Volunteer spirit, we are adopting the federal model of granting additional sick leave for employees who voluntarily donate body organs or bone marrow.

Goal 5 -Advocating for UT

• Transparent UT. We launched Transparent UT in an effort to be more open regarding our information and data, which included the launch of the Transparent UT website and online portal for individuals to submit new ideas. We launched a "data dashboard" that will build on our commitment to providing greater and easier access to information for UT's faculty, staff, students and the communities they serve.

• Strengthen the UT Brand. Over the past year, we have made tremendous progress with our relationships internally and externally. Most notable is our improved relationship with the legislature, which can be seen in the largest budget in UT history! Please see the summary below under government relations successes.

• Increasing Private Donations. We had our third highest fundraising year in history and finished the year with 64,632 donors, the most donors in UT's history. UT Martin Chancellor Keith Carver announced the largest gift to its campus, a $22 million bequest from Bill and Rosann Nunnelly, for scholarships for rural students to attend UT Martin free of tuition, fees, room and board!

Page 4


80

• Improving relationships with the legislature._We had tremendous success in improving our relationship with the legislature and securing both financial and legislative support for key initiatives. None of this could have been done without the great leadership of Anthony Haynes and the hard work of his Government Relations team. Among the accomplishments were:

Government Relations and Engagement. Engaged in the most aggressive presidential legislative outreach in more than a decade, meeting with approximately 80 percent of the state's elected and senior appointed officials during my first year as president, including 100 percent of the congressional delegation and constitutional officers. This direct engagement built strong relationships and paved the way for key successes, including:

Ushering through the largest state appropriation in UT history at $643.8 million;

Securing the largest capital project in the UT Institute of Agriculture's history (Energy and Environmental Science Education Research Center -$81.5 million);

Receiving $10 million in funding for security needs for our campuses, the first time this has ever happened.

Preventing more than $11.9 million in legislation constituting unfunded mandates for the University of Tennessee System;

For the first time in five years, ensured no punitive legislation was filed impacting the University of Tennessee as a result of controversial issues; and,

Secured legislative support for the re-establishment of an office on the UT Knoxville campus dedicated to supporting diversity and engagement efforts, fulfilling a strategic need for the campus.

Influenced and Secured Key Legislation and Policies. In collaboration with the city of Knoxville and Knox County, led efforts to secure legislation designating public higher education athletic venues as sports authorities. The legislation will increase revenue for UT campuses and generate a positive economic impact for the East Tennessee region. It has enabled the Knoxville-area to secure major entertainers and events for which it was previously unable to compete.

Led higher education coalition to ensure needed provisions were added to the state's sports betting law, aimed at protecting collegiate athletes and ensuring game integrity.

Secured a positive recommendation from the Joint Government Operations Committee on every proposed UT rule for the 2019 calendar year, including revised Student Codes of Conduct for UT Chattanooga, UT Martin, and the UT Health Sciences Center, as well as the rule for addressing the UT Board of Trustees.

UT Teacher Preparation. Successfully prevented legislation that would have adversely impacted UT's teacher preparation programs, and as a follow up, hosted the first system-wide Teacher Preparation Summit involving UT teacher preparation programs, leadership of the governor's office, Tennessee Higher Education Commission, State Board of Education and Department of Education.

Page 5


81

Funding for Research. Secured language to provide federal funding for key UT research interests such as hypersonics, the Institute for Advanced Composites Manufacturing Innovation and the Oak Ridge Institute.

Sex Week. When I arrived, the comptroller was preparing his report for the Senate Education Committee on Sex Week, and it was released in February. After much discussion with stakeholders in the legislature, the comptroller's office and on campus, I testified before the committee and our response was well received by the committee and others in the legislature. In response, we changed our student fee allocation process, which will still allow students to have input into programming and be a part of putting on programming. As a result, the students hosted a successful Sex Week program in the Spring and there were no complaints or comments by the legislature, nor any other negative publicity.

Strengthening Government Relations for Future Successes. o Instituted quantifiable performance metrics for all government relations employees.

o Performed an independent review of federal operations and recommendations.

o Implemented a system to better track legislative engagement, government relations activities, and outcomes. At my request, our Government Relations state team began keeping contact metrics for members of the legislature, constitutional officers, and the governor's cabinet and commissioners. The team procured appbased, contact management software tailored for government relations used by a number of Fortune 500 companies. The app provides contact metrics per UT staff with key public officials, issues and outcomes, constituent casework and tracks follow-up. I have been added as a user to the application so my contacts with governmental officials are reflected in the overall metrics.

o Supported efforts to promote succession planning and continuity of operations. As part of one of my six priority areas, specifically promoting succession planning, I supported efforts within our Government Relations operations to 'deepen the bench' by approving the promotion of the first woman to serve as associate vice president and director of state relations (Carey Whitworth). I have also supported investments in our staff, including Carey Whitworth to attend the Harvard Graduate School of Education's Institute of Executive Management, Josh Warren's enrollment in the Master of Higher Education Leadership program at UT Martin, and David Mills' participation in the UT Executive Leadership Institute. I believe it is important that our team members on the front line of politics, policy and higher education are some of our best thought leaders and advocates for UT.

Additional Accomplishments

• UT Strategic Plan Refresh. Working together with the campuses, we completed a refresh of the previous UT Strategic Plan. Planning involved more than 55 individuals in five working groups from across the UT System. Each group included System and campus content experts as well as representation from Institutional Research and Marketing and

Page6


82

Communications. In addition to establishing goals and metrics for their functional areas until 2025, each group was charged with identifying metrics, goals and objectives related to enhancing diversity and inclusive excellence. The plan helped to identify opportunities areas for which important resource investments are needed.

• Reduced Costs of the Office of the President. By reducing administrative costs, we are better able to redeploy resources to better serve our students, faculty and staff.

o I am thankful to be a position that I can honor our Volunteer spirit. My salary of $10,000 (to cover my health insurance) is $602,000 less than my predecessor, which is a direct savings to the university each year. It is my intent to continue to serve without pay.

o I do not charge the University for any of my expenses. The travel and personal expenses reimbursed the previous two years averaged $10,000 annually, which is now a savings to the university.

o We have reduced the number of executive staff positions. Specifically, I did not replace the positions on resignation and retirement or transfer of Tonja Johnson and Noma Anderson. We discontinued the position of chief of staff, and consolidated assistants from two to one when the president's previous assistant retired. The combined annual savings of these changes has been more than $600,000.

o The Office of the President, and each chancellor, manages accounts for discretionary expenditures. In FY2019, I reduced discretionary expenditures by $275,414, or 41.6 percent from FY2018.

• Negotiated a Contract to Keep Rick Barnes. At UT Knoxville Athletic Director Phillip Fulmer's request, I became involved and led the negotiations to keep Coach Barnes. In addition to a base salary to match UCLA, I was able to offer what I believe was an innovative solution. We created a bonus package based on performance of up to $3 million per year. I then found 10 investors, private citizens and UT supporters, who were willing to commit to 10 percent of that pool, or up to $300,000 per year. I was the first commitment, which made it easier for me to ask the others just to match me. This eliminated the need for the University to offer a bonus. We did all this in 24 hours and as a result were able to sign him to a new five-year contract.

• Sold the Eugenia Williams House. After 20 years and multiple committees and taskforces, we had been unable to make the decision to sell the house. I was able to obtain agreement among all parties to sell it, then sold if for $4 million to a foundation committed to its historic preservation. This resulted in meeting the needs of the neighborhood, satisfying concerns of the preservation community and raising money for the UT Promise scholarship endowment.

• Israel Academic Mission. I initiated and led a mission to Israel to build relationships with all the major universities. In part, it is the beginning of a focused effort to become a more global university, improving exchanges of students and faculty, and developing more research partnerships. In part, it was to build stronger ties with the Jewish community across the state and many of their leaders joined us. It was incredibly successful on both

Page 7


83

fronts. In addition, the 24-member delegation built strong bonds, especially between UTIA and UT Knoxville.

• External Review of Promotion and Tenure Processes. A team of external reviewers examined tenure processes and procedures currently in place across the UT System. The committee met with University Faculty Council; campus administration including deans and department heads/chairs (all UT campuses); and UT System administration. This external committee identified strengths, areas for improvement, and best practices and/or recommendations for improving promotion and tenure processes and procedures across the System.

Opportunities for Improvement

• Reunification Process. While many stakeholder groups agreed that the reunification of UTIA-UTK is likely to promote greater collaboration and enhance the University of Tennessee's national reputation, there were internal and external stakeholders who expressed significant frustration and disappointment about the degree to which they were able to engage in sharing their views as part of the decision-making process. Subsequently, I have acknowledged these concerns and have expressed my commitment to seeking more input when considering these types of decisions in the future.

• Capital Allocation. Our applications for new capital projects was inadequate and we failed to place a single project in the top eight recommendations by Tennessee Higher Education Commission (THEC) to the governor. Last year we were the only institution to get a project, the $81 million ag campus building. THEC doesn't alternate or balance awards; there is an objective scoring system. We believe many of our projects should have scored better and we could have done better in our applications. It is some consolation that the governor's office has indicated the governor will focus on capital maintenance in the upcoming budget and do no new buildings. Each year the priority is created again, so we may not have lost much.

In sum, while there are many things we must continue to improve on, I believe with the passion and hard work of our entire team, we have had a tremendous year. We have set a foundation to have an even greater year in 2020, and I for one cannot wait for it to begin!

Page 8


84

Attachment 2

UNIVERSITY OF TENNESSEE OFFICE O F THE CHIEF FINANCIAL

December 5, 2019

Mr. John Compton Board ChairThe University of Tennessee Board of Trustees719 Andy Holtrower Knoxville, TN 37996

Dear Chair Corrpton:

A partof the deliberationsIn your review of Mr. Boydincludesa eviewof University accounts underthe Presi:fent's control. Those include:

President's Office (departmental personnel and ooperatingbudget)Special Events/Emergency Management (unrestricted budgeted operating funds)

• President's Discretionary Fund (restricted funds) • Special Projects Fund(unrestricted budgeted operating funds)

TennesseeTomorrow (unrestricted budgeted operating funds)• President'sCouncil(restr icted funds)

All of these accounts operated in the timeframe of November 22, 2018 lhrough November 21, 2019 andwere handled in accordance with fis:al policy. The accounts were within budget at the c ose off scalyear 2019 and currentlyas of November 2019 . After the fisca l year closeson JuneJ O, 2020, the Office of Audit and Compliance will audit these accounts andsend a ,epor: to the Board of Trustees

Please advise if ycu need additional Inf formation or any clarificationon.

Sincerely,

DavidL. Miller SeniorVice President and Chief FinancialOfficer

OLM:tlc

C: Mr. Randy BoydMs. Cindy Moore

• • · •


85

Attachment 3

Interim President Boyd's overall performance during 2018-19 exceeded expectations:

# Answer % Count ------

Strongly Disagree (1) 0.97%

2 Disagree (2) 1.94% 2

3 Agree (3) 9.71% 10

4 Strongly Agree ( 4) 84.47% 87

0 Not Able to Assess (N/ A) 2.91% 3 ___

Total 100% 103


86

Attachment 4

University of Tennessee 2020 Objectives

I am excited to begin the "best decade in the history of UT" as we ride the momentum of a great 2019

into an even more transformative and productive 2020! While there will be many new initiatives, we

also must execute on those significant initiatives launched in 2019. Following is a summary of same of

the major objectives of the University ofTennessee System along with a "by-the-numbers" summary of

our key metrics. However, as a great mentor of mine once said, "You operate every day1 and you strategize every day." Because goals are always evolving, it is quite likely that some of our greatest

accomplishments for 2020 are yet to be imagined!

Enhancing Educational Excellence

As a land-grant university (sharing that mission with all UT campuses) we must serve our state by

providing the talent it needs to be successful. Governor Haslam identified the need for 55 percent of

the population to have some post-secondary certificate or degree by the year 2025, known as the Drive

to 55. UT has a critical and leading role in helping the state achieve this goal. Further, by the charge

given by Abraham Lincoln when creating the land-grant universities, we must provide a ladder up for the

working class and middle class to a better education that can lead to better jobs and a better life. We

must define ourselves not by who we exclude, but by who we include. To accomplish this, we must

continue to strive to make our campuses affordable. Thus, we have some big initiatives from 2019 that

we must execute and additional initiatives to launch in 2020.

Enhancing Educational Excellence

• Increasing enrollment, graduation rates and retention. Our driving force is to improve the

academic success of our students. In FY 20, our goal is to increase enrollment to 51,582 across the

system and award 12,458 degrees. In addition, we are aiming to improve the six-year graduation

rate for undergraduates to 65.2% and increase freshman fall-to-fall retention to 80.9%. We are

working on several innovative programs and services to help us meet these goals.

• Executing on the UT Promise. The UT Promise will officially kick off in the fall of 2020. While we had

a successful recruitment launch with over 4,000 high school applicants and over 1,000 applicants

from students currently enrolled, there is much hard work remaining. We must recruit and train

mentors, create an easy-to-use and meaningful service program that gives students opportunities to

make an impact, and get these students successfully enrolled. We must build on our current

momentum by following up with an even more successful recruiting class in 2021.

• Endowing the UT Promise. We have raised $24 million in the first few months since announcing the

endowment. The objective for 2020 will be to increase the endowment to $50 million, putting us

halfway to our longer-term objective of a $100 million endowment.

• UT Online. We will develop UT Online, a joint venture between our campuses to improve student

success and degree completion. Currently, online courses are not seamlessly shared across UT

campuses; courses are not filled to capacity; scheduling bottlenecks cannot be easily mitigated by

on line offerings; students cannot easily access on line offerings at other UT campuses; and

transcription of grades, exchange of tuition dollars, and application offinancial aid are not seamless.

We will explore efforts to expand online offerings through a UT consortium model which could help

Page 1


87

to incentivize and grow online enrollment; provide greater flexibility in course scheduling; decrease

time to degree; further enrich available course offerings in current degree programs; promote the

creation of new joint UT degree programs; and provide greater flexibility for degree completion.

• OneUT for Student Mental Health & Wellbeing: Student mental health and wellbeing has emerged

as one of the Nation's most critical concerns on college campuses, negatively affecting student

success, progression toward degree, and degree completion. The University ofTennessee aspires to

be a national leader in addressing this crisis. In 2020, UT will convene a systemwide working group,

OneUT for Student Mental Health & Wellbeing, to develop a strategy for building a more robust and

supportive mental health culture on each UT campus; identify national best practices; establish

opportunities to strengthen student support; and develop systemwide benchmarks. This workgroup

will recommend best practices for ensuring student mental health and wellness and will identify

necessary steps toward becoming a national leader in supporting student wellbeing.

• New Innovative Degree Programs. Campuses will explore expanding degree options and innovative

opportunities for credentialing students, including, but not limited to, integrated

undergraduate/graduate degrees; Bachelor of Applied Science degrees; accelerated undergraduate

degrees; two-year credentials; "stackable" certificates; and/or micro credentialing. This is consistent

with supporting the state's Drive to 55 initiative, the goal to equip 55 percent ofTennesseans with a

college degree or credential by the year 2025.

• Enhance Campus Safety. While this could go under several goals, student safety is an integral part

of academic success. We will be creating a taskforce to identify ways to make UT campuses among

the safest in the country.

Expanding Research Capabilities

• Increasing research expenditures. We have a goal of increasing research expenditures by 7% each year. For FY 20, our goal for research expenditures as reported to the National Science Foundation is $477.4 million. In order to reach this target, we have several ambitious projects for 2020 outlined below.

• Oak Ridge Institute. Following the release of the Steering Committee Recommendations Report, ORI will immediately begin full reviews of existing Joint Programs and will develop streamlining and realignment strategies to improve efficiency and output. Our 2020 goal is to launch the first phase of new faculty recruitment (24 of 120 faculty/researchers); recruit approximately fifty new collaboratively-mentored graduate students for the fall of 2021; and explore the acquisition of a facility to house the Institute. Full implementation will require new state and federal funding; implementation pace and scope will depend on the level of funding committed.

• UTIA-UTK Reunification. Following reunification, "early wins" and opportunities for additional

collaborations were identified (reported in 2019). In 2020, UTIA-UTK woworking groups established by

UTK Chancellor and UTIA Vice Chancellor will complete their charges to recommend operational strategies for enhanced collaboration in five broad areas (Student Services; Research; Academic

Affairs and Shared Governance; Communications and Marketing; and Finance and Administrative

Processes). UTIA-UTK will move forward with plans to extend student services (including dining options) to the west side of campus; establish new collaborative degree programs; enhance research opportunities to move into the top 50 public research universities (HERD); streamline

academic policies, procedures and protocols; develop a comprehensive communication plan to fully

Page 2


88

integrate messaging of UTIA to reflect the collaborative efforts of UTK and UTIA; and streamline financial and administrative processes.

• Co-management of the Oak Ridge National Laboratory. The UT-Battelle contract to manage the Oak Ridge National Laboratory (ORNL) on behalf of the US Department of Energy officially expires April 30, 2020. UT and Battelle have co-managed ORNL since winning the contract in 2000.

Maintaining our management position long-term and strengthening our partnership with ORNL is of the highest priority. UT and Battelle will work with the Department of Energy in 2020 to determine next steps with the ultimate goal of a contract extension.

• UT Research Park at Cherokee Farm. In 2019, the University, through the UT Research Foundation and its subsidiary Cherokee Farm Development Corporation (CDFC), successfully recruited a team of seasoned economic development professionals to better position the UT Research Park at Cherokee Farm as an economic driver in East Tennessee. The Innovation North Building has now been fully leased, and one private sector tenant (a startup led by a UT graduate) went through a successful merger and acquisition. In 2020, CFDC expects to deliver on co-location projects with global innovation partners, help accelerate technology startups, and break ground on an 81,000 square foot project that promises to help better align the clinical growth of UT Medical Center with research strengths and opportunities at UT Knoxville and the UT Health Sciences Center.

• International Policy and Compliance. UT will create an Office of International Policy and Compliance. This new office will be responsible for developing and implementing a strategic policy agenda that promotes productive relationships with foreign partners and collaborators. We will strive to become a national leader by establishing an effective framework to promote and foster international academic collaborations while ensuring compliance with university, state, and federal policy obligations.

• Improving Information Security and Data Privacy. The University recognizes the critical importance of protecting the personal data of students and employees, the research data generated by faculty and students, and other sensitive information maintained on University systems. We will invest to enhance information security and ensure data privacy at the System and at each campus and institute.

Fostering Outreach and Engagement

As the land-grant university (sharing that mission with all UT campuses), we have the responsibility to

make a positive impact across our state, transferring and leveraging our intellectual, physical, and

financial resources to improve the lives of our fellow Tennesseans.

• Leadership in Public Policy and Training. UT has a unique opportunity to become the leader in

policy development and thought leadership on key issues facing the state ofTennessee. Closer

collaboration between the Baker Center, the Government Relations team, the Institute for Public

Service (IPS), as well as the State Legislature and Administration will be developed to help inform

specific areas of focus. Through these unmatched assets, UT will become first and foremost in the

minds of policymakers when they seek thorough, thoughtful, non-partisan research and insights.

Furthermore, UT has the ability to provide ongoing training for state, city, and county policymakers

and administrators (much of this is already done through various IPS divisions). Through closer

collaboration, these units can expand their offerings to provide additional depth and breadth of

policy expertise and assistance.

Page 3


89

• SOAR 2.0. We will continue to build on the tremendous success of the first addiction and opioid

summit hosted last August, entitled Summit for Opioid and Addiction Response (SOAR). Helping to

eliminate this crisis is a "Grand Challenge" that the University of Tennessee has the expertise to

address. A series of next steps is planned, from releasing an asset mapping tool to convening SOAR

2.0. There is much to do across the state to mitigate this crisis and UT will provide important

leadership.

Ensuring Workforce and Administrative Excellence

To ensure the maximum resources are available for our student success, discovery, and engagement mission, we will continue to strive to be more effective and efficient in our administrative operations.

The following are some key initiatives that will aid in these efforts:

■ UT Tower. The UT System, the UT Research Foundation and the UT Foundation will move into the

"UT Tower," currently known as the TVA East Tower. We expect to make the move at the end of

summer or early fall. Doing so will increase efficiency by having teams working closer together

instead of being spread across various different locations. There is a tremendous amount of work to

do in designing the new space and making the move, but the long-term benefits will be great.

■ ERP Implementation. The University will select a new ERP system vendor by the end of 2020. The

current ERP system, known as IRIS, is built on a SAP platform (that will no longer be supported after

2025). The SAP platform is an "on-premise" system which will be replaced by a modern "cloud" ERP

system. Systemwide planning will continue throughout 2020, resulting in a Request for Proposals in

early fall and vendor selection by December. The project will provide support for financial and

human resources operations.

■ New Office of Institutional Effectiveness. The Offices of Institutional Research and Business

Intelligence will join together to form a new Office of Institutional Effectiveness. This group will

create a vision, identify opportunities and gaps, and develop an associated roadmap. We will

conduct a national search for an Associate Vice President of Institutional Effectiveness in 2020.

■ Financial Dashboards. We will create a financial performance dashboard which will provide greater

insight into the University's financial key performance indicators. The University provides an

abundance of financial reports for THEC, the state, and the Board of Trustees, but these complex

reports can obscure the bottom-line financial condition of the University as a whole.

• Strategic Plan Metrics. We will complete remaining key metrics and track and report progress on

the Dashboard. Workgroups (Enhancing Educational Excellence; Expanding Research Capacities;

Fostering Outreach & Engagement; Ensuring Workforce & Administrative Excellence; and

Advocating for UT) will meet to review goals, document progress, and identify opportunities. Each

workgroup will provide an annual update on progress and will identify associated "course

corrections" if/when appropriate.

• Administrative Alignment. We will increase standardization of common administrative operations

at UT institutions to create greater proficiency, compliance, and productivity. The workflow

Page 4


90

designed around the new ERP system will be built on achieving standardization where possible and

appropriate.

• Pulse Surveys. The University will improve employee engagement and satisfaction. We will begin

ongoing measures of employee satisfaction and priorities through a series of surveys tailored to

solicit maximum participation. These will include short "pulse" questions as well as a deeper survey.

• University Policies. We will improve the process for creating University policies, make existing policies more easily accessible to employees, and provide increased training opportunities to educate employees as to their obligations under those policies.

• UT Press-UTK Library. The UT Press plays a significant role in the intellectual life of the University of

Tennessee System, the academic community, and in the state. University presses across the country

have undergone transformations and have realigned as the role of presses in the academic

community has changed; many university presses have joined with campus libraries to support the

academic mission of the institution. Because a growing number of works are published in a digital

format, libraries have been an important partner. In 2020, the UT Press and UTK Libraries will work

together to identify ways to better capitalize on the long history of collaboration; benefit from

existing synergies; and explore new and innovative initiatives.

• Developing a OneUT Culture.We will continue to convene the OneUT Leadership Council and

constantly look for ways to further increase collaboration, capture synergies, and increase impact by

working together statewide as a team-as One UT. Following are just a few of those initiatives:

• OneUT for Campus Change. We must make it easier for students to transfer from one UT campus

to another. OneUT for Campus Change focuses on enterprise-level student success strategies to

enhance access to education across the UT System and ensure the success of students transitioning

between UT campuses (campus change students). Seamless transfer for students across the system

will increase student success outcomes by removing barriers to degree completion, eliminating

educational disparities, and allowing students more freedom to select the UT campus that best fits

their needs without significant loss in credits toward a degree should a campus change be

necessary.

• OneUT Collaboration and Innovation Grants. In 2020, we will execute on the One UT Collaboration

and Innovation Grants announced at the end of 2019. To promote the University's tripartite mission

to educate, discover, and connect, the University of Tennessee System announced the One UT

Collaboration and Innovation Grants in late 2019. The goal of this initiative is to support innovative

ideas, create collaborative opportunities, and advance the University in three key areas-student

success, research, and outreach and engagement. The System set aside $1.5 million ($500,000 for

each of the three categories) in one-time grants for UT faculty and staff. Proposals must promote

collaboration across units, campuses, or institutes as well as demonstrate long-term sustainability.

In 2020, proposals will be reviewed, grants awarded, and progress monitored.

Advocating for UT

Our brand affects our rankings, reputation, funding, and recruitment. While we have made tremendous

progress, we still have much work to do. We will continue key initiatives and will develop new ones to

Page5


91

further strengthen the UT Brand. We have great stories to tell; we just need to be better at telling

them.

• Systemwide Integrated Marketing Communications Plan. We will develop an integrated

communications and marketing plan that outlines System and campus/institute roles and goals with

a series of objectives, strategies, and tactics to build the collective brand through a common voice

and message. While each campus and institute has its own voice and strategic communications

priorities, there is a unique opportunity to quantify and promote the System's collective impact and

unify the brand to raise awareness for all UT components.

• Consistent Brand Strategy. There is value in leveraging the collective-and doing so requires brand

consistency. Ensuring a consistent visual brand identity is critical to increasing awareness of the

University of Tennessee. We will work with our colleagues at all campuses/institutes to ensure "The

University a/Tennessee" word mark is consistently used and prominently positioned in all primary

logos (while allowing flexibility in other design aspects based on differences in icons, character

count, word length, etc.). We will reconstitute and convene the systemwide Graphic Identity

Guidelines Committee to ensure more effective collaboration. The Committee will review current

processes-and recommend changes as needed-between campuses/institutes and the UT System

Offices of Licensing and Capital Projects to ensure consistency and awareness regarding brand

guidelines.

• Fundraising. The UT Foundation has experienced record-breaking numbers in recent years, thanks

in large part to the generosity of alumni and friends. Over the past two years, there have been

transformational gifts that have named colleges and programs across the system. For the 2020

year, the Foundation has a goal of generating $243 million in private support, and currently stands

at 57% of goal at the midpoint of the fiscal year. In addition, there is a goal to increase the donor

base to 66,375, which would surpass last year's record level.

• Engagement. Alumni engagement continues to be an important piece of the advancement program

as graduates from UT campuses serve as ambassadors for the university, assist in recruiting

students, serve as key advocates, and extend their private support. During the 2020 year, the

goals are to expand the number of engaged alumni to 210,000 and to increase participation in the

Advocacy Network to 6,650 members.

• Government Relations. The relationships enjoyed by the university with our state and federal

governments are critical. The government remains our single largest funding source, and its

approval is required on everything from parking rules to building projects. In 2020, we will continue

to promote the positive perception of the University among our elected leaders and raise UT's

visibility as a thought leader throughout both the state and federal governments. In addition, we

will aggressively pursue funding for our top priorities - the Oak Ridge Institute, and agriculture

salary improvements including support for 32 new extension positions for our distressed rural

counties- and continue efforts to increase government funding of UT research initiatives that

enhance UT's research capacity and leverage private-sector partnerships.

Page 6


92

There have been some incredibly successful decades in UT's history. To say this next decade will be the

best in UT's history is a bold, audacious statement. But all that has come before has provided us the

foundation on which to build. Today, we have the resources, the talent, and-most importantly-the

will to make it happen And we will! 2020 will be the first step in the journey, and I, for one, cannot

wait to get started!

Page 7


93

2020 Winter Meeting Board of Trustees - Consent Agenda

AGENDA ITEM SUMMARY


Item: Consent Agenda

Type: Action

Presenter: John C. Compton, Chair of the Board

Certain items have been placed on the Consent Agenda of the full Board meeting, including all or most items recommended by a standing committee that met in conjunction with this regular meeting of the Board. Only items in Tab 9.1 and 9.2 were not considered in a committee meeting.

Items on the Consent Agenda will not be presented or discussed in the Board meeting unless a Committee member requests removal of an item from the Consent Agenda. In accordance with the Bylaws, before calling for a motion to approve the Consent Agenda, the Chair will ask if any member of the Committee requests that an item be removed from the Consent Agenda. The Bylaws provide that an item will not be removed from the Consent Agenda solely for the purpose of asking questions for clarification. Those questions should be presented to the Secretary before the meeting.

Board Action

If there are no requests to remove items on the Consent Agenda, the Chair will call for a motion for approval of all of the items on the Consent Agenda by adoption of the applicable Resolutions as set forth in the meeting materials.

94


AGENDA ITEM SUMMARY


Item: Minutes of Prior Meetings

Type: Action

Minutes of the November 8, 2019 meeting of the Board of Trustees follow this memorandum.

Resolved: The reading of the minutes of the November 8, 2019 meeting of the Board of Trustees is omitted, and the minutes are approved, provided that the Secretary is authorized to make any necessary edits to correct spelling, grammatical, or format errors or other technical errors subsequently identified.

95


Page 1Board of Trustees Fall Meeting

November 8, 2019

THE UNIVERSITY OF TENNESSEEBOARD OF TRUSTEES

MINUTES OF THE FALL MEETING November 8, 2019

Knoxville, Tennessee

The Fall Meeting of The University of Tennessee Board of Trustees was held at 1:00 p.m. EST, on Friday, November 8, 2019, at the Student Union Ballroom on the campus of University of

Tennessee in Knoxville.

I. Call to Order and Invocation

The Chair of the Board, John C. Compton, called the meeting to order and recognized Mason Leaf, Director of Campus Outreach Knoxville, to offer the invocation.

II. Opening Remarks and Introductions by the Chair

Although Chancellor Plowman was unable to attend the meeting, Chair Compton thanked her and the team for hosting the Board at UT Knoxville campus. He spoke of the opportunity that the Board members had to learn more about certain UT Knoxville scholarship programs andhow wonderful it was to have the chance to connect with a number of amazing students, many of whom have overcome various challenges, that have found a home at the University.

With the recent appointment of Mr. Brad Box, Chair Compton announced that the composition of the Board is finally filled. He proceeded to present Trustee pins to: Brad Box; Spencer Ammen, the Non-voting Student Trustee for 2019-20, a UT Knoxville student; and Charlie Hatcher, the Commissioner of Agriculture for Tennessee, who serves an ex officio capacity.

Reflections on the performance of the Board over the past year were shared by Chair Compton. He expressed his appreciation for all of the efforts of the Board members and said that he was very proud of the group. He noted that all of the trustees are new members of the Board and that each member is dedicated to learning more about the University and, importantly, to engaging with and listening to all of the constituent stakeholders. Chair Compton advised that the Board members have been actively meeting with students, faculty, staff, legislature, alumni, and the community at large. He stated that, due to this outreach and other activities, that there are tangible positive results, including improve relationships with the state legislature, increased alumni engagement and giving, and an increase in the number of students who are enrolling.

Chair Compton said that, singularly, the most important and best accomplishment of the Board during the year was the appointment of Randy Boyd to serve as Interim President. The Chair

96



November 8, 2019

expressed his view that there are some decisions that really make a difference and his belief that it will be one of the decisions that will be remembered years from now as a success. He also commented that, with the selection of Chancellor Plowman, all of the Chancellor positions are now filled and one that he would put up against anyone in the country. He thanked Interim President Boyd for his efforts in this regard, along with the work that is being done by Interim President Boyd to improve the integration and collaboration across the campuses and the system.

Additionally, Chair Compton spoke of the Board’s efforts to increase transparency, improve the process for addressing the Board, and to listen and meet with stakeholders. He briefly provided a brief update on the UT Foundation and the endowment, along with the UTC Foundation and its endowment. He shared that, while he is pleased to see the increased level of giving to the University, the increase in the number of donors is even more important. People are emotionally connecting to the University, and that connection is critical to the success and welfare of the University. Chair Compton also indicated that he believes theextension of the Tennessee Promise through the creation of the UT Promise was a brilliant idea. It was a bold move on one that addresses access and affordability, which will allow qualified students to consider and attend a UT campus. He noted that the Board held tuition at a rateequal to or below the rate of inflation and referenced the progress made by the Special Committee on Athletics, chaired by Mr. Charlie Anderson,

In looking forward, Chair Compton stated that the Board would need to revisit the interim president title given to Mr. Boyd. Various stakeholder groups have expressed support of Interim President Boyd’s performance. However, to formally measure his performance, the Chair explained that he will be conducting a formal performance appraisal of Interim President Boyd, which will be presented to the Board. The review will include hard and soft metrics, as well as feedback from key stakeholders. Following the review, the Board will then consider next steps. Trustee Jenkins expressed his appreciation for the efforts of Interim President Boyd, who he believes has done an excellent job, and offered his support for removing the interim title. The Chair thanked Trustee Jenkins for his comments.

Chair Compton also discussed progress made on a number of key initiatives and the work that is ongoing, including:

∑ Oak Ridge Institute;∑ UT Promise; ∑ Student Success (enrollment, retention and graduation)∑ Growing the Research enterprise∑ Efficiency and Effectiveness (e.g., TEAM and the ERP system projects)

In summary, the Chair remarked that it was a great first year but that there is a lot of work to be done. The goal is to get better every year.

97



November 8, 2019

The Chair then recognized Catherine S. Mizell, Secretary, Chief of Staff and Special Counsel to the Board, for her many years of service . He advised that Ms. Mizell is retiring at the end of the year after almost 40 years at the University of Tennessee. During her time at the University, she has served 10 different presidents and 11 vice chairs. Before presenting a resolution of appreciation in honor of Ms. Mizell for approval by the Board, a roll call of trustees present at the meeting was conducted.

III. Roll Call

Board Secretary Mizell, called the roll, and the following members of the Board were present:John C. Compton, Chair; Spencer Ammen; Brad Box; Charlie Hatcher; Decosta E. Jenkins; Kara M. Lawson; Amy E. Miles; William (Bill) C. Rhodes III; Donald J. Smith; Kim H. White and Jamie Woodson.

The Secretary announced the presence of a quorum. Trustee Alan Wilson was unable to attend the meeting. Others present included University faculty, staff, and students, members of the general public, and media representatives. The meeting was webcast for the convenience of the University community, the general public, and the media.

Honorary Resolution

Chair Compton presented the resolution honoring Ms. Mizell for her valuable service to the University as General Counsel and Board Secretary and bestowing the title of Board of Trustees Secretary Emeriti. Ms. Mizell received a standing ovation. A member moved adoption of the Honorary Resolution, the motion was seconded and Honorary Resolution 004-2019 passed unanimously by a roll-call vote.

Ms. Mizell expressed her gratitude for the privilege of serving the University and the Board of Trustees. She publicly expressed her very deep appreciation to Dr. Joe Johnson, who recommended her as General Counsel and Secretary of the Board of Regents, created a position to bring her back to the University in 1984, and twenty years later recommend her as General Counsel and Secretary of the University. Ms. Mizell thanked various team members for their work in supporting the Board.

The Chair acknowledged Cynthia Moore, the incoming Secretary to the Board of Trustees, and welcomed her to the team effective January 1, 2020. He described Ms. Moore as hugely accomplished having served the Board of Trustees at the University of Pittsburgh where they had 80 trustees, 36 of whom had voting rights. Ms. Moore has history with experience in serving other boards, as well as financial and legal experience in investment banking and other complex financial transactions. The Chair remarked that the Board is excited to have her on the team, and he welcomed her to the meeting.

98



November 8, 2019

IV. Requests to Address the Board

Chair Compton noted that there were three requests to address the Board, the first individual on the agenda was Ms. Megan Henley, a current student at UT Knoxville, who is speaking asa representative of the student organization Sexual Empowerment and Awareness at Tennessee (SEAT) on the subject of student programming. Ms. Henley was not present.

The Chair recognized Dr. Andrea Ludwig, an associate professor of ecological engineering at UT Institute of Agriculture, to address the Board on the subject of UTIA-UTK Unification. Dr. Ludwig said that she serves as the elected chair of the Ag Caucus for Faculty Senate and that she served on the unification committee as a representative of the UTIA faculty, the only representative of UT Extension on the committee. Dr. Ludwig spoke of concerns raised as to the decision-making process associated with the unification efforts involving UTIA and UTK, as well as the creation of the Oak Ridge Institute. She stressed the importance of shared governance, communication and transparency. While encouraged to see efforts to rebuild trust, she called for acknowledgment of the failures made as part of the unification process. She called on the board for faculty to be included in future structural changes and a voice in the selection of the next leader of the University. She thanked the Board for the opportunity to speak and looks forward to seeing ideas come together to nurture a healthy and collaborative UT. The Chair thanked Dr. Ludwig for her comments.

Next, the Chair recognized Dr. Mary McAlpin, Professor and Chair of the French Program, Department of Modern Foreign Languages and Literatures, College of Arts and Sciences, UT Knoxville. Dr. McAlpin indicated that she was addressing the Board as a representative of the Executive Committee of the UTK Chapter of the American Association of University Professors, who was addressing the Board on the subject of the Student Programming Fee Allocation Process. She read a prepared statement, which provided background information on the old and new process for allocation of Student Programs and Services Fee (SPSF). She voiced the Chapter’s concerns, noting that the most significant pertains to the free speech rights of students. She stated the Executive Committee believes that students should be allowed a primary role in determining how the SPSF should be allocated to support studentprogramming. The Chair thanked Dr. McAlpin for her comments.

Copies of the prepared remarks of Dr. Ludwig and the written document referenced by Dr. McAlpin are filed with these minutes.

99



November 8, 2019

V. President’s Address

Interim President Boyd began his address by thanking the Board for the opportunity to servethe University and expressing how much it has been an honor to serve his alma matter. He said that every day he is inspired by the people – the faculty, staff and students – and the opportunities that the University provides that changes lives.

Interim President Boyd stated that his remarks would focus on the progress made in the last four months based on the identified priorities:

∑ Succession Planning/Recruitment∑ Increase in Talent Development∑ Enhance Research∑ Advance Engagement∑ Build the One UT Culture∑ Build the Brand

Succession Planning/Recruitment. Interim President Boyd highlighted the investiture of Dr. Donde Plowman, as the ninth Chancellor of UT Knoxville. He praised Chancellor Plowman as an outstanding leader, who has great listening abilities and a bold vision. He also reviewed a number of leadership changes, involving departures, restructuring of responsibilities, and proposed promotions. He also updated the Board on ongoing hiring searches.

Talent Development. In this area, the efforts of the Chancellors to increase enrollment across the system were highlighted. It was noted that UT Martin had the highest level of growth not only within the UT System but in the State of Tennessee. Interim President Boyd advised of progress being made in the area of online education initiatives, which will be discussed in more detail at a future meeting. The importance of the role of the University as a land-grant university was emphasized. Interim President Boyd discussed the University’s rise in national rankings (U.S. News and World Report), but shared his concerns as to certain measures employed in the rankings, namely – selectivity. He said that selectivity is also a measure of who you choose to exclude. In this regard, the University will measure its success, not by who is excluded, but by who is included. He continued his remarks by stating that UT Promise gives the University the opportunity to provide greater access to more Tennesseans. He reviewed the specific details of the program, along with a number of positive outcomes expected due to the UT Promise program, including increased retention due to reducing the financial demands placed on students and families. Interim President Boyd stated that, currently, 46% of students at UT graduate without debt. The program is expected to reduce student debt and improve this figure. The goal is to have 2,000 students enrolled next fall under the UT Promise initiative.

100



November 8, 2019

Research

UTIA- UTK Reunification. Interim President Boyd thanked the UTIA-UTK ReunificationCommittee, including Dr. Linda Martin, Dr. Ludwig and others, for their efforts in soliciting input from stakeholders and for developing the committee’s. Interim President Boyd acknowledged the criticisms raised by some regarding the reunification process and offered an apology as to the process. He also expressed his appreciation for the work of Chancellor Plowman and Senior Vice President/Senior Vice Chancellor Tim Cross, along with their teams, in response to the report.

Oak Ridge Institute. Interim President Boyd advised that a steering committee was formed to look at guidelines, perform functional audits, and to develop a plan for moving the Oak Ridge Institute initiative forward. He indicated that the business plan and budget would be shared with the Board at a future meeting when there is more information regarding state funding for the initiative.

Engagement. Interim President Boyd acknowledged the dedicated and passionate staff working in the Extension offices and the impact of the offices across the state. He is optimistic about the likelihood of receiving increased state funding that would be used for hiring an additional 32 agents to serve distressed communities. On another engagement front, Interim President Boyd provided information on the Summit for Opioid Addiction and Response(SOAR), which brought together more than 700 people from across the state. He stated the University is a trusted partner, which has wide-spread reach across the state and, most importantly, the intellectual capacity to address grand challenges facing the state of Tennessee.

One UT Culture. Interim President Boyd noted that, by fostering greater collaboration and more efficient processes across the UT System, there is an opportunity to redeploy resources towards the University’s efforts to further engagement, advance research, and support students and faculty.

UT Brand. Lastly, Interim President Boyd stressed the importance of trust and transparency in building a strong brand. In addition to the Transparent UT website, a new data dashboard was released that will provide useful information for students, faculty and outside stakeholders. It will include a number of metrics, starting with student data.

Interim President Boyd said that, in his opinion, today is the best time in the history of the University of Tennessee brand. He reflected on the recent story of boy in Florida, who wore a homemade UT T-shirt to school and how he was teased by some of his classmates. He spoke of how the UT family rose up in response. Chancellor Plowman has made an offer to the student to attend UT Knoxville, free of tuition and fees, if he meets the academic admission requirements. Interim President Boyd shared how news of the story has spread locally, nationally and internationally. He also reported that the VolShop printed the boy’s T-shirt

101



November 8, 2019

design, with a portion of the proceeds going to an anti-bullying campaign recommended by the child. Interim President Boyd advised that donations have been received by from individuals, who are alumni of other universities, in appreciation of the actions of the University and the entire UT community in support of the child and for taking a stand against bullying.

VI. Promotion of Associate Vice President Tiffany Carpenter to Vice President for Communications and Marketing

Interim President Randy Boyd presented his recommendation to promote Ms. Tiffany Carpenter to Vice President for Communications and Marketing. Hearing no questions or comments, the Chair called for a motion, it was seconded, and Resolution 103-2019 passed unanimously by a voice vote.

VII. Appointment of David Miller as Senior Vice President and Chief Financial Officer

Interim President Boyd next presented his recommendation to appoint Mr. David Miller as Senior Vice President and Chief Financial Officer given the additional responsibilities associated with the restructuring outlined in the meeting materials. Hearing no questions or comments, the Chair called for a motion, it was seconded, and Resolution 104-2019 passed unanimously by voice vote. The Chair recognized the work being performed by Mr. Miller and congratulated him on the appointment.

VIII. Appointment of Cynthia Moore as Secretary and Special Counsel

Chair Compton recommended the appointment of Ms. Cynthia Moore as Secretary and Special Counsel to the Board of Trustees. The Chair shared information on Ms. Moore’s background, the proposed compensation, and directed the Board members’ attention to additional information contained in the meeting materials. Ms. Moore started as Secretary-Designate effective November 1, 2019 and will assume the role of Secretary and Special Counsel to the Board of Trustees effective January 1, 2020. Trustee Rhodes moved adoption of the Resolution, it was seconded, and Resolution 105-2019 passed unanimously by voice vote. The Chair welcomed Ms. Moore to the team.

IX. Recommendation of Bylaw Amendments

Chair Compton explained, that upon the recommendation of the Executive Committee, amendments to the Bylaws have been proposed, which are of a technical and clarifying in nature. The proposed revisions were sent to the members in advance of the meeting. The Chair moved adoption of the Bylaw Amendments. Hearing no questions or comments,Resolution 106-2019 was approved by a roll-call vote.

102



November 8, 2019

X. Campus Processes for Determining Programs to be Funded by Student Programs and Services Fee

As an informational item, President Boyd provided background information pertaining to the Board policy governing the Student Programming and Services Fee (SPSF), which was adopted by the Board at the 2019 Winter Meeting. He indicated that each of the campuses have developed processes for determining the use of the SPSF funds, which processes set forth the role and responsibilities of the Chief Student Affairs Officers and provide for student involvement. Interim President Boyd shared his hopes that the new processes will allow for a wider range of programming offerings for students with even more student input than what existed under past practices. Chair Compton called for any further discussion on this topic. Student Trustee Spencer Ammen acknowledged the controversial nature of this issue given that it has been raised with the Board on several occasions. As the fee will be used to fund programs for students, he urged the importance of continuing to allow students to be engaged in the process. Chair Compton expressed a commitment to a continuous improvement process and stated that, if issues arise from the implementation of the new processes, there remains the ability to address them. Chair Compton thanked Mr. Boyd and the Chief Student Affairs Officers for working to develop these processes to ensure there is student input, and he also thanked Student Trustee Ammen for his comment.

XI. Report of the Special Committee on UT Athletics Programs

The Chair recognized Mr. Charlie Anderson, Chair of the Special Committee on UT AthleticsPrograms, for the Committee’s report. Committee Chair Anderson thanked the other members of the Committee for their service and reported on the status of the Committee’s work. He reviewed the charge given to the Special Committee, which includes:

1. Recommending Mission Statements for the Athletics Departments;2. Recommending Policies for the oversight of Intercollegiate Athletics;3. Recommending standards of accountability and benchmarks against which to measure

success;4. Determining adequacy of compliance function within each athletic department including

the process for reporting and investigating alleged violations of NCAA rules;5. Reviewing policies and standards concerning admissions, academic progress and academic

integrity for student-athletes; and6. Recommending academic, fiscal, compliance and other reports the Board should receive on

a regular basis.

At a meeting on September 12, 2019, the Special Committee completed three of the six tasks (Items 1, 2 and 6). Committee Chair Anderson reviewed the key elements of the proposed Board Policy. On the recommendation of the Special Committee, Committee Chair Anderson recommended that the Resolution on Policy on Oversight of Intercollegiate Athletics be

103



November 8, 2019

approved. Hearing no questions or comments and noting the Policy was in the meeting materials, the Chair called on Trustee Rhodes, as a member of the Special Committee, for a motion to approve Resolution 107-2019 and the motion passed unanimously by voice vote.

Committee Chair Anderson next stated the Committee also reviewed the Mission Statementsfor Chattanooga, Knoxville and Martin Athletics Departments, which Mission Statements were included in the meeting materials. On the recommendation of the Special Committee, Committee Chair Anderson recommended that the Resolution to approve the Mission Statements be approved. Hearing no questions or comments, the Chair called asked TrusteeLawson, as a member of the Special Committee, for a motion to approve Resolution 108-2019and the motion passed unanimously by voice vote.

Mr. Anderson said that in the coming months, the Committee will address the three remaining tasks. He added that UTC and UTM will each present a report on their Athletics Programs to the Board at a future meeting. He then introduced Phillip Fulmer, Vice Chancellor and Director of Athletics, and Reid Sigmon, Deputy Athletics Director and Chief Operating Officer.

AD Fulmer expressed his appreciation for the opportunity to provide a report on the UT Knoxville Athletics Program. He shared the four pillars of the Athletics Program, which are Communication, Trust, Warmth, and Intensity. Mr. Fulmer then presented a general overview of Tennessee Athletics. He provided an update on the Learfield Director’s Cup and improvement in the national rankings. He also reviewed student-athlete academic performance commenting that the approach to student-athlete development is holistic. He expressed his thanks to Donnie and Terry Smith for their support of the Vol Leader Academy.

Deputy AD Sigmon gave an overview of the financial performance of the Athletics ProgramHe discussed the 6-year operating results and reported that the UT Knoxville Athletics Program is only one of 25 institutions in the country that generates a surplus. However, he noted that the surplus is not as large as some of the other programs in the SEC. He reviewed the primary components of the budget, including debt service levels and financial trends.

AD Fulmer reviewed the status of capital projects, including completed projects and largest upcoming project involving Neyland Stadium. Regarding the financial aspects of the project,Deputy AD Sigmon stated that the Board of Trustees approved a budget of $180 million in November 2017 and that the project is within the budget. The project is being financed with a combination of cash and debt. Approximately $70 million will come from cash – a combination of gifts and partnerships. The goal is to fundraise for approximately one-third of budget. He reviewed the overall debt structure, including anticipated changes and the level of annual debt service. A copy of the presentation is filed with these minutes.

Chair Compton expressed his appreciation for the work that has been done by the Special Committee. He called on the leadership of the Athletics Program to continue their efforts in

104



November 8, 2019

promoting respect of women, compliance with Title IX, and student success. Chair Compton remarked that the improvement in performance overall in one year was remarkable. Committee Chair Anderson provided some closing thoughts and complimented Chancellor Plowman and Interim President Boyd for their leadership.

XII. Report of the Audit and Compliance Committee

Amy Miles, Chair of the Audit and Compliance Committee, referenced the written report included in the meeting materials and shared a few highlights of the report. Chair Compton thanked Trustee Miles for leadership of the Committee.

XIII. Consent Agenda

Chair Compton explained that except for the routine items presented in Tabs 10 through 13 of the Consent Agenda, all other items were considered in committee meetings held earlier in the day with most Trustees present and participating, and all were passed unanimously by the committees. The Chair asked whether any Trustee wanted to move any item from the Consent Agenda for discussion. Hearing no requests, the Chair called for a motion. A motion was made and seconded to approve the items on the Consent Agenda by adoption of the relevant Resolutions set forth in the materials. The motion passed unanimously by a voice vote. A full list of the approved items is set forth on the last page of these minutes.

XIV. Other Business

There was no other business. Chair Compton asked whether the student who requested to address the Board, who was not present at the beginning of the meeting, was in attendance. It was confirmed that the student was not in attendance.

XV. Closing Remarks

The Chair wished everyone a great Thanksgiving holiday. He announced that the nextExecutive Committee of the Board is scheduled for January and that the next Board meetingwill be held in February.

105



November 8, 2019

XVI. Adjournment

With no further business to come before the Board, the Chair adjourned the meeting.

Respectfully Submitted,

____________________________________Cynthia C. MooreSecretary and Special Counsel

Approved Consent Agenda Items

∑ Minutes of Prior Meetings ∑ Annual Report to the General Assembly∑ Amendments to UTC Campus Advisory Board Bylaws∑ Resolution Appointing a Managerial Group for U.S. Government Contracts ∑ Items from the Education, Research, and Service Committee:

1. New Academic Program: B.S. Pharmaceutical Sciences, UTHSC2. Revisions to the Board Tenure Policy Concerning Early Tenure3. Grant of Tenure upon Initial Appointment at UTHSC4. Grant of Tenure upon Initial Appointment at UTK

∑ Items from the Finance and Administration Committee:1. Acquisition of Office Space by Sub-easement2. FY 2020-21 Operating Budget Appropriations Request for Specialized Units 3. Annual Report of Tuition and Fee Revenues4. Authorization for Check Signatures5. Corporate Authorization to Transfer Securities6. Statement of Treasury Policy7. FY 2019 Annual Flight Operations Report 8. Acquisition of Property by Gift for Institutional Use9. Grant of Easement to St. John’s Episcopal Church

106


AGENDA ITEM SUMMARY


Item: 2018-19 Annual Report to the General Assembly

Type: Action

State law requires the Board of Trustees to submit an annual report to the General Assembly including enrollment information, financial information, and other information about the operations of the University. The Annual Report for 2018-19 approved by the Board on November 8, 2019 was corrected to remove the reference to GME funding in the President’s letter as the funding was removed from the Governor’s final budget. The revised version of the Annual Report is attached.

Resolved: The Board of Trustees hereby ratifies the revised 2018-19 Annual Report to the General Assembly as presented in the meeting materials, which shall be attached to this Resolution.

107


ANNUAL REPORT TO THE

GENERAL ASSEMBLY

2019

108


109


C O N T E N T S

2INTRODUCTION

From the President

MILESTONES

Moving Tennesseans closer to a debt-free degree through UT Promise UT System Sparks Change During Summit for Opioid Addiction and Response

ORI@UT - Building the Technology Talent Pipeline for America

FINANCIALS

Sources of Current Funds

Uses of Current Funds

Current Fiscal Year

ENROLLMENT

6

6

7

8

9

10

11

110


A N N U A L R E P O R T T O T H E G E N E R A L A S S E M B LY

From Interim President Randy Boyd

It is such an honor to serve

the great state of Tennessee.

I’m incredibly proud of the

accomplishments we have made, as

a team, during the past year. One of

the greatest legacies we can leave

is to have a profound impact on

young people, and so I’ve tried to

approach my role at the University of Tennessee with that

mentality in everything we do.

I am convinced, more so than ever, that there is no better time

in the University of Tennessee’s history than now. As I look

back on the last year, I am encouraged by all that has been

accomplished and energized about what’s to come.

• Increased enrollment, record-breaking fund raising at our campuses, profound impact around the state and around the world.

• A sizeable impact in our communities. Everywhere you

look, we are making a sizeable impact in the communities

we serve. Last year, we announced UT’s estimated

economic impact of $9.094 billion across the state for

fiscal year 2017.

• New Chancellor for UT Knoxville, Donde Plowman. In her

short time as chancellor, Chancellor Plowman has already

made tremendous strides in bringing the campus together

and helping ensure our faculty, staff and students are

working and learning in a welcoming environment.

• Launched TEAM. We must ensure work is done in the most

efficient and effective manner between the UT System and

its campuses and institutes. Therefore, the Task force for

Effective Administration and Management (TEAM) was

launched and is actively working to ensure, and to make

clear why things are done a particular way. More than 50

people from all campuses continue to be involved with this

initiative.

• Launched the One UT Leadership Council. In an effort to

increase collaboration and communication with our great

partners at Oak Ridge National Laboratory (ORNL) and to

ensure a broader platform for the Institute of Agriculture,

we replaced a quarterly “chancellors meeting” with a

monthly, in person “One UT Leadership Council” consisting

of ORNL Director Thomas Zacharia, UTIA Senior Vice

President and Senior Vice Chancellor Tim Cross, and the

chancellors at the UT Health Science Center, UT Knoxville,

UT Chattanooga and UT Martin. Having face-to-face time

2

111


• Launched the UT Commission on Agriculture: The

land-grant mission of the UT Knoxville has always had

serving the agricultural industry at its core. In order

to serve, we need to understand and to understand, we

need to listen. The more ways we can do so, the better

we can deliver that mission. The UT Commission

on Agriculture was created to help us listen. All UT

leaders that support agriculture at UT need to hear

directly from the people, the communities and the

industries we serve in order to provide the value they

want, need and deserve.

I N T R O D U C T I O N

with the leadership from across the state is impactful

and important. Independently we are all good, but

together we are great. There is not a stronger force for

positive change in our state.

• Hosted Summit for Opioid Addiction and Response (SOAR): UT is uniquely positioned to identify the

state’s “grand challenges,” such as the opioid addiction

crisis, and convene the key stakeholders to work

together to combat those challenges. More than 700

leaders from across the state and nation gathered

in Knoxville to share ideas and information, make

connections and make new plans to work together to

combat this epidemic on our people, our state and the

nation.

• UT Promise. It is critically important that we do our

part to be a ladder up for the middle and working

classes. By launching UT Promise, we have done

something no statewide university system has ever

done in history, and are being recognized across the

state and throughout the country.

• UTIAandUTKReunification:Of all the 1862

land grant institutions, UT was the only one with

its flagship campus independent of the College

of Agriculture, College of Veterinary Medicine,

Experiment Stations and Extension. As a result,

according to Fiscal Year 2017 National Science

Foundation Higher Education Research and

Development Survey data, UT Knoxville ranks 107th

in research and UTIA ranks 170th. We were not

structured in a way that allows us to be competitive.

Our trustees voted to reunify these two critical

campuses, which already shared the same faculty

senate, faculty handbook, residence halls, and

facilities management Together, the campuses now

rank 55th among public universities.

3

112


A N N U A L R E P O R T T O T H E G E N E R A L A S S E M B LY

M I L E S T O N E S

• Oak Ridge Institute at UT established: The Oak Ridge

Institute at the University of Tennessee (ORI@UT) forges

a path of increased collaboration and alignment between

UT and Oak Ridge National Laboratory, and will enhance

Tennessee’s ability to provide talent to meet national

needs.

• Fundraising.We had our third highest fundraising year

in history and finished the year with 64,632 donors,

the most donors in UT’s history. UT Martin Chancellor

Keith Carver announced the largest gift to its campus, a

$22 million bequest from Bill and Rosann Nunnelly, for

scholarships for rural students to attend UTM free of

tuition, fees, room and board!

• Unleashing our best kept secret. After my first two weeks

on the job, I boasted I had been to every campus: Memphis,

Martin, Tullahoma, Chattanooga, Institute for Public

Service, Institute of Agriculture, Knoxville and Oak Ridge

National Lab. I was reminded that we have campuses in all

95 counties—our Extension offices. I promptly committed

to visiting all 95. They share the same mission and

passion, but are unique and inspiring in their own way.

These are just a few of the many points of pride we have all

contributed to during the past year. While these milestone

achievements are important, I remain squarely focused

on our students and ensuring we do our part to help them

achieve their dream of successfully completing college. That

means hiring and retaining the best faculty and staff, having

a growth mindset at all times, and expanding access to our

campuses and institutes to students across Tennessee and

around the world. I can’t wait to see what next year brings!

4 4

113


5

114


M I L E S T O N E S

Moving Tennesseans closer to a debt-free degree through UT Promise

Announced in March 2019, UT Promise is a last-dollar

scholarship program that guarantees free tuition and

mandatory fees for qualifying Tennessee undergraduate

students with a family

household income of

under $50,000 after

other financial aid is received (such as Pell Grants,

HOPE Scholarship or other institutional scholarships)

at UT Knoxville, UT Chattanooga, UT Martin and UT

Health Science Center. Students must qualify for the

Tennessee Hope Scholarship and meet the academic

qualifications for the institution to be eligible for this

new scholarship. To help ensure success, students will

complete eight volunteer service hours each semester.

“UT wants to ensure that Tennessee residents can

achieve their dreams with college degrees,” Boyd

said. “We want to ease the financial burden for the

state’s middle- and working-class families as we know

education is the route to change lives, which then

change communities and the state.”

While 46 percent of UT students graduate without debt,

the goal of UT Promise is to make higher education even

more accessible and affordable for Tennessee students.

UT Promise will welcome its first class in the fall of

2020, and the scholarship program will include those

students who were previously enrolled in college when

the program begins in 2020.

UT System Sparks Change During Summit for Opioid Addiction and Response

The University of Tennessee System ignited action across

Tennessee around the opioid epidemic through the first

Summit for Opioid Addiction and Response (SOAR).

More than 700 people from various

backgrounds came together in

August at UT Knoxville to discuss

the ongoing opioid addiction

epidemic in Tennessee. The summit bought together

stakeholders of all backgrounds and areas to talk about

the opioid-driven addiction and suicide problem in

Tennessee and identify solutions that can be used across

the state.

6

115


“The best way to make the greatest impact on this terrible

disease and epidemic is for all of us to bring our collective

expertise to the table. I am excited to see all of the big ideas

and solutions that will come from this event,” said Boyd.

The two-day summit included discussions on current

trends, dissolving the stigma, the economic impact

the crisis is having on our state, state agency response

to the epidemic, federal grant support and developing

community-based, collaborative response to the crisis.

“Together, we can develop solutions that permanently

break the cycle of addiction in our communities across

the state. Together, we can transform those affected by

this opioid epidemic. UT is for all Tennesseans, and we

are here to help change lives,” Boyd said.

ORI@UT - Building the Technology Talent Pipeline for America

The Oak Ridge Institute at the University of Tennessee

(ORI@UT) will create a robust talent pipeline in areas

of growing national need and demand. As a result,

Tennessee will become the “go-to” destination for top-

level talent development and discovery.

The establishment of ORI@UT forges a path of increased

collaboration and alignment, and will enhance

Tennessee’s ability to provide top-tier talent in areas

of national need. ORI@UT will maximize coordination

of the many joint programs at UT and ORNL, bring

together colleges and departments across UT campuses

and ORNL and remove barriers to collaboration that

will usher in world-class interdisciplinary graduate

research and education.

ORI@UT will address top-tier industry and workforce

needs emerging from the introduction of automation

and artificial intelligence. The institute will develop

scientists and engineers, who will be locally relevant

and globally competitive. Students will be prepared by

teaching innovation and interdisciplinary problem-

solving skills.

7

116


F I N A N C I A L S

Sources of Current Funds FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Federal Appropriations 0.9%$22,568,282.65

Independent Operations 2.2%$57,688,725.37

Other 5.7%$149,157,917.97

Auxiliary 9.7%$254,916,346.71

Tuition 28.3%$741,095,213.63

State Appropriations 24.4%$637,540,479.41

Gifts, Grants and Contracts 28.8%$754,336,143.17

Total: $2,617,303,108.91

8

117


F I N A N C I A L S

Uses of Current Funds FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Instruction 722,618,437.69 28.5%

Research 343,978,408.31 13.5%

Student Aid 310,684,708.36 12.2%

Public Service 157,195,278.60 6.2%

Auxiliary Enterprises 204,774,588.95 8.1%

Academic Support 228,207,699.35 9.0%

Institutional Support 172,681,240.41 6.8%

Physical Plant 152,473,902.47 6.0%

Student Services 103,191,532.67 4.1%

Independent Operations 35,030,747.24 1.4%

Long Term Debt & Other Transfers 108,103,471.61 4.3%

Total: $2,538,940,015.66

9

118


F I N A N C I A L S

Total Funds Invested for the Benefit of UT, 2010-2019

sep. life inc. chairs of uc cip endowments trusts excellence foundation

2010 $ 531 $ 10 $ 40 $ 99 $ 88

2011 $ 619 $ 11 $ 42 $ 113 $ 103

2012 $ 601 $ 11 $ 42 $ 114 $ 101

2013 $ 672 $ 12 $ 44 $ 123 $ 112

2014 $ 791 $ 15 $ 50 $ 139 $ 127

sep. life inc. chairs of uc cip endowments trusts excellence foundation

2015 $ 822 $ 15 $ 44 $ 137 $ 131

2016 $ 820 $ 14 $ 43 $ 140 $ 125

2017 $ 911 $ 15 $ 42 $ 152 $ 135

2018 $ 976 $ 10 $ 43 $ 160 $ 149

2019 $ 1,025 $ 9 $ 40 $ 167 $ 153

2019201820172016201520142013201220112010

CIP SEP. ENDOWMENTS LIFE INC. TRUSTS CHAIRS OF EXCELLENCE UC FOUNDATION

-$ 100

$ 100

$ 300

$ 500

$ 700

$ 900

$ 1,100

$ 1,300

$ 1,500

10

119


11

University of Tennessee Fall Student Enrollments Headcount

1-Yr Change % 5-Yr 5-Yr 2015 2016 2017 2018 2019 N % Change Trend

UT System Undergrad 38,646 38,875 39,162 40,043 40,589 546 1.4% 5.0%

Grad / Professional 10,489 10,512 10,717 10,767 10,993 50 2.1% 4.8%

Total 49,135 49,387 49,879 50,810 51,582 931 1.5% 5.0%

UT Knoxville Undergrad 21,863 22,139 22,317 22,815 23,290 475 2.1% 6.5%Grad-Academic 5,259 5,244 5,280 5,350 5,431 81 1.5% 3.3%Grad-Professional 723 669 724 729 739 10 1.4% 2.2% Total Graduate/Prof 5,982 5,913 6,004 6,079 6,170 91 1.5% 3.1%

Total 27,845 28,052 28,321 28,894 29,460 566 2.0% 5.8%

UT Chattanooga Undergrad 10,083 10,170 10,176 10,195 10,239 44 0.4% 1.5%Grad 1,304 1,363 1,411 1,393 1,351 (42) -3.0% 3.6%

Total 11,387 11,533 11,587 11,588 11,590 2 0.0% 1.8%

UT MartinUndergrad 6,435 6,279 6,330 6,674 6,763 89 1.3% 5.1%Grad 392 426 442 374 517 143 38.2% 31.9%

Total 6,827 6,705 6,772 7,048 7,280 232 3.3% 6.6%

UT Health Science Undergrad 265 287 339 359 297 (62) -17.3% 12.1%Grad-Academic 1,093 1,068 1,099 1,133 1,154 21 1.9% 5.6%Grad-Professional 1,718 1,742 1,761 1,788 1,801 13 0.7% 4.8%Total Graduate/Prof 2,811 2,810 2,860 2,921 2,955 34 1.2% 5.1%

Total 3,076 3,097 3,199 3,280 3,252 (28) -0.9% 5.7%

Notes:Includes non-degree seeking and dual enrollment (high school) studentsExcludes students enrolled in audited classes and co-op courses UTK includes Space Institute and Veterinary Medicine studentsUTHS excludes Residents in Health SciencesGrad- Professional = Medicine: MD, Dentistry: DDS, Pharmacy: PHARMD, Law: JD, and Vet Med: DVM

F I N A N C I A L S

120


The University of Tennessee is an EEO/AA/Title VI/Title IX/Section 504/ADA/ADEA Institution.

121


AGENDA ITEM SUMMARY


Item: Items from the Education, Research, and Service Committee

Type: Action

Education, Research, and Service Committee agenda items approved in the Committee and coming forward to the full Board Consent Agenda are in the meeting book of the Committee and not repeated here. See the full Board Consent Agenda for the list of these items.

122


AGENDA ITEM SUMMARY


Item: Items from the Finance and Administration Committee

Type: Action

Finance and Administration Committee agenda items approved in the committee and coming forward to the full Board Consent Agenda are in the meeting book of the Committee and not repeated here. See the full Board Consent Agenda for the list of these items.

123

the university of tennessee board ... - ut board of trustees · ii. roll call iii. welcome and...

Documents