The just-concluded fiscal year proved to be a good one financially for West Virginia University with income 7.7 percent higher than anticipated, and the institution’s net assets increasing $22.8 million, based on unaudited financial statements.

For the year ended June 30, the University had revenue of $955 million against expenses of $932 million, Vice President of Administration and Finance Narvel Weese reported to the Board of Governors Friday (Sept. 9).

“It’s important to remember that we have been able to strengthen the University financially in what is an otherwise cloudy and uncertain economic environment,” Weese said. “Many things have contributed to this performance, but overall it is reflective of the hard work and skill of all our employees, plus the growing appreciation – and drawing power – of WVU.”

Although cautioning that it’s still early, Weese said the FY2012 looks promising as well.

He noted that just before the fall semester began, student applications were more than 3 percent ahead of the previous year, with most of the growth in non-West Virginia residents and international applications. Also, applications by high-achieving students – those with SAT scores of 1190 and above and ACT scores above 26 – were up both by West Virginia residents and non-residents.

President Jim Clements echoed the “good news” theme, recounting several accolades the University has recently received, including being named this week by AARP as one of the nation’s top five employers for workers age 50 and above. Other recognitions include selection as the second highest ranked public university on a list of best places to conduct research, and various honors awarded to researchers at the National Research Center for Coal and Energy and in the College of Engineering and Mineral Resources.

He also highlighted WVU’s plans for the upcoming celebration of the 150th anniversary of the Morrill Act, which created land-grant institutions such as WVU, and the ways the school is taking its mission into the future, such as establishing a School of Public Health and emphasizing service and engagement.

Clements also announced that the BOG had created a scholarship fund for students from Braxton County in recognition of Board Member Carolyn Long, the immediate past chair.

The Board also received a report on the first phases of an energy performance contract with Siemens Building Technologies, and a recommendation that it approve a new phase.

Weese said the University has significantly reduced the amount of energy and water consumed since it first contracted with Siemens in 2006, saving more than $2.8 million.

He recommended, and the Board approved, a new $9.5 million contract with Siemens that would save about $769,000 annually through system and equipment upgrades at 12 buildings on the downtown campus as well as at Potomac State College in Keyser and the Health Sciences Center in Charleston. The contract also includes upgrades to lighting in all the downtown, Potomac State and HSC campuses.

The meeting opened with a required Tax Equity and Fiscal Responsibility Act public hearing on the issuance and use of $20 million in bonds for the previously announced acquisition, construction and equipping of a new student health facility on the Evansdale campus. The Board then approved the request and forwarded it to acting-Gov. Earl Ray Tomblin for issuance of the tax-exempt bonds and use of the proceeds for the project.

WVU Foundation
In his annual report to the Board, WVU Foundation President and CEO Wayne King said donors contributed a record $96.3 million during the fiscal year ending June 30. For the same period, the endowment investment pool returned 18.4 percent. Total assets under Foundation management are $1.09 billion.

King said the Foundation’s top fund raising priority continues to be the state Research Trust Fund, which enables the University to receive up to $35 million in matching state dollars for private dollars received. The quiet phase of a comprehensive campaign continues, he noted, with the likelihood of a goal being set and a public launch of the campaign later next year.

King also introduced the Foundation’s new vice president for finance and CFO, Mike Augustine, who began work in June.

Research Trust Fund
Meanwhile, the Board approved $2.89 million in new Research Trust Fund contributions for submission to the state for matching funds, bringing the total to be matched to $21.87 million and when combined with state dollars, providing more than $43.7 million in investments in key research areas.

The new funding, certified by the Foundation, comes from 21 sources, said Wheatly, who presented the gifts and pledges for approval. The donor of the largest gift and details on the contribution will be announced publicly at a later date.

Other gifts/pledges include:

  • Badzek Family Endowment for Nursing Research – $50
  • Grace C. Clements Speech Pathology and Audiology Research Endowment – $100
  • David VanDorn Sutton Scholarship – $635
  • Allen S. Pack Endowment for Mining Engineering – $1,500
  • James P. Boland MD Dept. of Surgery Endowed Research Fund – $5,005
  • James A. Kent Endowment for Biomedical Engineering – $6,000
  • Raymond Brooks Vanscoy Cancer Research Endowment – $8,516
  • Benjamin James Galford Memorial Scholarship – $10,000
  • Women in Science and Engineering Giving Circle Endowment – $18,000
  • Walter H. Moran, Jr. General Surgery Resident Research Endowment – $25,000
  • Martha Hopkins Hasinger Scholarship – $26,855
  • Wells Fargo Energy Group Scholarship – $32,000
  • Michael Baker Corp. Endowment in Civil and Environmental Engineering – $50,000
  • Donald R. and Linda E. Holcomb Research Endowment for Dentistry – $100,000
  • Dr. Thomas W. Jarrett Research Endowment for Dentistry – $100,000
  • Norma Mae Huggins Cancer Research Endowment – $104,420
  • Branson-Maddrell Endowed Professorship in Orthodontics – $124,134
  • Academy of Chemical Engineers Graduate Fellowship – $129,250
  • Arch Coal Inc. Endowment for Mine Health and Safety Research – $300,000
  • Mabel Phares Leukemia Research – $350,000

The state created the Research Trust Fund in 2008 with an initial appropriation of $50 million ($35 million for WVU, $15 million for Marshall) to leverage public and private investments that will help transform West Virginia’s economy.

WVU is able to tap into the fund to double private gifts that support expansions to research faculty and infrastructure in key areas linked to economic development, health care and job growth.

Other Business
In other business, the Board:

  • Approved creation of separate departments of accounting and management information systems within in the College of Business and Economics. The two are currently combined.
  • Approved a policy increasing University investments with the Foundation by $40 million or 65 percent of unrestricted net assets, whichever is greater. The increase was permitted by a recent change in state law.
  • Approved $600,000 to purchase and $2.7 million to renovate the former Potomac Valley Hospital property adjacent to Potomac State. The building will be used for student housing and future expansion.
  • Approved the Board committee structure. Committees and their chairs are: Strategic Plans, Initiatives and Accreditations, Carolyn Long; Finance, Ed Robinson; Divisional Campus, Robert Griffith; Health Sciences, Ellen Cappellanti; Audit, Jim Dailey; Executive, Drew Payne.

On Thursday, the Board held an annual constituency meeting with classified staff and will meet with faculty and students during upcoming meetings.



CONTACT: University Relations/News

Follow @WVUToday on Twitter.