MINUTES OF A MEETING OF THE EXECUTIVE COMMITTEE OF THE BOARD OF VISITORS
OF VIRGINIA COMMONWEALTH UNIVERSITY
October 20, 1981
A meeting of the Executive Committee of the Board of Visitors of Virginia
Commonwealth University was held on Tuesday, October 20, 1981, at 9:00 a.m. in
the Conference Room at 910 West Franklin Street.
Present were Messrs. Balfour, Grey, Ludeman and Wyatt; Mesdames Bemiss and
Thalhimer; and Dr. Nemuth. Dr. Gayle was absent. Also present were Drs. Ackell,
Hall, Wilson and Woods; Messrs. Bruegman, Guerdon and Ross; Miss Cosby and Mrs.
Price.
Mr. Guerdon presented the Financial Management Manual for Institutions of
Higher Education which was prepared by the Office of the State Comptroller and
his staff. Mr. Guerdon pointed out the following sections in the Manual that
would be of particular interest to members of the Board:
Chapter 2, page 7-8 - Role of Board and Committees
Chapter 3, pages 15-18 - Auditing and Annual Report
Chapter 5, pages 2-9 - Financial Warning Signals
Appendix 1:1-7 - Self Review Questionnaire
Appendix 10:1-18 - Matrix of Warning Signals
Mr. Guerdon also cautioned the Committee concerning the use of the Financial
Warning Signals and indicated:
Financial Warning Signals should be considered as a general
guide in that:
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• Certain ratios are controlled by the State.
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Not all the suggested ratios can be calculated because they:
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Following his presentation, Mr. Guerdon indicated that for the December meeting
of the Executive Committee he would prepare some comparative data using our peer
institutions. He also indicated that he would complete the Self Review Ques-
tionnaire.
The Executive Committee requested that it receive budget updates during
the year. Mr. Bruegman was asked to provide quarterly expenditure reports with
more detail On a semi-annual basis.
Mr. Bruegman presented a summary report of the recommendations made by
State Council relative to VCU's operating budget addenda requests for the 1982-84
biennium. Listed below is the request followed by the State Council recommendation
1. Correction of Indirect Cost Rate for Medicine and Dentistry
Biennial General Fund Request: $2.9 million
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-Classified as a Priority 1 recommendation.
2. Hospital Operating Support During Transitional Period.
Biennial General Fund Request: S4.6 million
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3. Relieffrom 65/35 Plan.
Biennial General Fund Request: $6.1 million
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4. Faculty Salary Increase in Excess of 4.5%.
Biennial General Fund Request: $14.8 million
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- among benchmark institutions supported.
Priority 1 - 1 1/2%/yr. above targeted 4.5%/yr. across
the board to all institutions.
Priority 2 - Additional 1 1/2%/yr. across-the-board.
Priority 3 - 1/3 remaining gap to achieve 30th percentile
(1.5%/yr.)
Priority 4 - Another 1/3 of gap (1.5%/yr.)
Priority 5 - Last 1/3 of gap (1.5%/yr.)
5. Continuation of Emergency Medical Training Program.
Biennial General Fund Request: .3 million
-Recommends that funds for this program be taken from Hospital
appropriation.
6. Adjust University's Manpower Employment Level Target.
Biennial General Fund Request: 0
-Recommends that Council take no action.
7. Urban Services Appropriation.
Biennial General Fund Request: $ .2 million
-Recommends that this be a self-supporting activity with no
General Fund support.
-Assigned to Priority Group 5.
8. Transfer Welfare Program from Sponsored Program to Educational
and General.
Biennial General Fund Request: $ 0
-Not recommended because it will lead to General Fund support of
positions when Federal Funds are withdrawn.
Mr. Bruegman indicated that the following requests were being considered as
1982-84 Executive/Legislative priorities:
Operating Budget
1. Tuition Relief:
a. Correction of Indirect Cost Rate
b. Adjustment to 65/35 Limiting
Increase to 15% per year
2. Hospital Operating Support
3. Faculty Salary Increases (12%/yr.)
4. Continuation of Emergency Medical
Training Program
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Capital Budget
1. Construction of General Purpose
Academic Building
2. Hospital
a. Final Installment-New Hospital
b. Renovation Programs
3. Construction of Bookstore
4. Construction of Coal Boiler Plant
Language Amendments,
1. Permit use of 70% of Indirect Costs on Grants and Contracts
for purposes other than research.
Mr. Bruegman reported that if we do not receive relief from the 65/35 Plan,
VCU will be forced to increase its tuition in excess of 50% during the upcoming
biennium. Dr. Ackell indicated that we cannot ask our students to absorb this
large an increase. He also indicated that VCU is being penalized for educating
Virginia residents.
Mr. Ludeman reported that there are a number of problems which need to be
addressed in the 1982 Legislative session, and indicated that he would like to
establish an Ad Hoc Legislative Relations Committee of the Board to work with
the administration on important issues. Mr. Ludeman requested that the following
members of the Board serve on this committee along with himself: Mr. Balfour,
Mrs. Bemiss, Dr. Coleman, Mr. Craigie, Mr. Smith and Mrs. Thalhimer. A briefing
and organizational session will be scheduled for early November. On motion made
and seconded, the Committee approved establishing an Ad Hoc Legislative Relations
Committee.
Dr. Ackell reported that VCU had hired a consultant to assess the need for a
graduate engineering program in the Richmond area. He reported that the consultant
had submitted a report supporting this need and stated that a number of leaders
in the business community have approached him regarding this need and have in-
dicated that the Richmond area is not attracting the industry it could because
of the lack of graduate engineering programs. Members of the Board of Directors
of the Chamber of Commerce have indicated that they will support an effort by
VCU to establish such a program. Dr. Ackell reported that his report was
being presented in order to alert the Executive Committee to the fact that we
will be drawing up a proposal., and the administration will be making a presentation
to the Academic Policy Committee.
Mr. Ross reported that the Resolution that was passed at the September Board
of Visitors meeting concerning the issuance of bonds for the Low-Rise Dormitory
had included an incorrect figure. On motion made and seconded, the Committee
amended the third paragraph, third line from $4,930,000 to $4,932,000.
On motion made and seconded, the Committee convened in executive session
to discuss certain personnel matters involving the performance of identifiable
employees or faculty of VCU as authorized by Section 2.1 - 344 a (1) of the
Virginia Freedom of Information Act.
The committee reconvened in public session and reported that no action had
been taken.
The meeting was adjourned at 10:55 a.m.
Harold I. Nemuth, M.D., Secretary
Approved:
