Treasury Reporting and Dashboards

(1)

Treasury Reporting and Dashboards

MaryFrances McCourt, Treasurer

Indiana University

Brian Smith, Director of Treasury and Risk Management

The University of North Carolina at Chapel Hill

Robert Spencer, Assistant Vice Chancellor for Treasury

Vanderbilt University

(2)

Agenda



Importance of Treasury Reporting



Peer Survey Discussion



Reporting Examples:



Indiana University



The University of North Carolina at Chapel Hill



Vanderbilt University

(3)

Importance of Treasury Reporting



Managing liquidity



Financial market volatility



Efficient use of resources



Enterprise risk management



Management and governance (rating agencies)



Investor due diligence and focus on underwriting

underlying credit



Peer comparison

(4)

Key Considerations



Treasury reports should promote transparency with wide

internal distribution among chancellor, vice chancellors,

financial directors, and, occasionally, trustees



Dashboard reports should be used for planning,

monitoring, and decision making (not a data dump)



Reports should be focused and clean in appearance



‘Forcing’ the frequent collection of data simultaneously

forces clarity and systematic improvements (“looking

under rocks”)

(5)

Peer Survey Discussion



“The best-managed universities have developed

management dashboards that track debt and financial

metrics, and make comparisons to peers and

competitors.”

- Moody’s Investor Service, “The Great Credit Shift, US Public Finance Post Crisis“, 21 September 2011



25 universities surveyed



7 responded



5 large, research publics



2 large, research privates

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Peer Comparison Survey Results

Metrics

Peer Comparison

Benchmarks

Publics

Pre-Crisis

2

1

Post-Crisis

Both

2

1

Privates Pre-Crisis

1

Post-Crisis

1

Both

DASHBOARDS

(7)

Peer Comparison Survey Results

Frequency

Debt

Liquidity

Funds Trends/

Operating

Performance

Central Bank

Assessment/

Risk

Other

Publics Pre-Crisis

Post-Crisis

Monthly/ Qtrly

2

1

2

Both

Quarterly

2

1

Privates Pre-Crisis

1

Post-Crisis

Quarterly

1

Daily

1

Daily

Both

Annual

1

Daily

1

"FLASH" REPORTING

Contents

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University ABC

Financial Assessment Summary

6/30/2006A 6/30/2007A 6/30/2008A 6/30/2009A 6/30/2010A 6/30/2011A 6/30/2012E 6/30/2013E 6/30/2014E 6/30/2015E 6/30/2016E

Operating revenues $ 1,624,947 $ 1,692,210 $ 1,722,616 $ 1,874,070 $ 1,933,283 $ 2,003,416 $ 2,079,643 $ 2,160,789 $ 2,245,415 $ 2,337,337 $ 2,433,246 Operating expense $ 2,128,006 $ 2,223,932 $ 2,287,359 $ 2,434,854 $ 2,493,131 $ 2,579,131 $ 2,671,608 $ 2,765,862 $ 2,857,474 $ 2,950,292 $ 3,034,082

% operating revenue 131.0% 131.4% 132.8% 129.9% 129.0% 128.7% 128.5% 128.0% 127.3% 126.2% 124.7%

Operating loss $ (503,059) $ (531,722) $ (564,743) $ (560,784) $ (559,848) $ (575,715) $ (591,965) $ (605,073) $ (612,059) $ (612,955) $ (600,836) % operating revenue -31.0% -31.4% -32.8% -29.9% -29.0% -28.7% -28.5% -28.0% -27.3% -26.2% -24.7% Net non-operating revenue $ 609,364 $ 698,104 $ 688,220 $ 662,627 $ 798,281 $ 831,255 $ 737,040 $ 733,965 $ 741,648 $ 752,992 $ 769,022 Income b/f other rev, exp,

gains or losses $ 106,305 $ 166,382 $ 123,477 $ 101,843 $ 238,433 $ 255,540 $ 145,075 $ 128,892 $ 129,590 $ 140,037 $ 168,186

% total revenue 4.8% 7.0% 5.1% 4.0% 8.7% 9.0% 5.2% 4.5% 4.3% 4.5% 5.3%

Total other revenue $ 21,134 $ 15,925 $ 23,082 $ 30,228 $ 20,873 $ 26,594 $ 8,456 $ 8,456 $ 8,456 $ 8,456 $ 8,456 Increase in net assets $ 127,439 $ 182,307 $ 146,559 $ 132,071 $ 259,306 $ 282,134 $ 153,531 $ 137,348 $ 138,046 $ 148,494 $ 176,642

6/30/2006A 6/30/2007A 6/30/2008A 6/30/2009A 6/30/2010A 6/30/2011A 6/30/2012E 6/30/2013E 6/30/2014E 6/30/2015E 6/30/2016E

Statement of Net Assets

Cash $ 476,676 $ 383,786 $ 574,506 $ 552,892 $ 671,293 $ 580,110 $ 601,851 $ 635,321 $ 627,317 $ 610,734 $ 605,136 Accounts receivable 125,351 130,870 114,030 107,947 111,087 121,106 126,944 132,989 139,034 145,079 151,124 All other current assets 150,371 165,966 140,597 159,906 189,439 259,785 260,444 261,136 261,862 262,625 263,425 Total current assets 752,398 680,622 829,133 820,745 971,819 961,001 989,239 1,029,446 1,028,213 1,018,437 1,019,686 Investments 568,052 778,704 715,369 714,836 915,008 1,101,246 1,266,433 1,456,398 1,674,858 1,926,086 2,214,999 Capital assets, net 1,839,660 1,933,451 2,048,204 2,197,123 2,316,762 2,422,233 2,454,240 2,436,795 2,489,184 2,544,065 2,365,383 All other non-current assets 93,802 73,941 90,709 81,542 76,618 72,096 62,757 65,895 69,190 72,650 76,282 Total assets $ 3,253,912 $ 3,466,718 $ 3,683,415 $ 3,814,246 $ 4,280,207 $ 4,556,576 $ 4,772,669 $ 4,988,533 $ 5,261,445 $ 5,561,238 $ 5,676,350 Total current liabilities $ 469,722 $ 485,156 $ 478,858 $ 461,007 $ 525,609 $ 554,715 $ 560,821 $ 570,472 $ 587,547 $ 604,334 $ 618,293 Bonds payable $ 578,391 $ 534,898 $ 725,723 $ 749,181 $ 848,205 $ 817,920 $ 876,270 $ 947,162 $ 1,067,027 $ 1,203,703 $ 1,129,997 All other non-current liab. $ 249,175 $ 307,733 $ 193,344 $ 186,497 $ 229,526 $ 224,940 $ 223,046 $ 221,019 $ 218,945 $ 216,781 $ 214,998 Total liabilities $ 1,297,288 $ 1,327,787 $ 1,397,925 $ 1,396,685 $ 1,603,340 $ 1,597,575 $ 1,660,137 $ 1,738,653 $ 1,873,518 $ 2,024,818 $ 1,963,288 Net assets:

Invested in cap. assets, net $ 1,259,567 $ 1,304,656 $ 1,336,766 $ 1,475,395 $ 1,555,422 $ 1,621,228 $ 1,621,952 $ 1,593,574 $ 1,605,502 $ 1,618,414 $ 1,506,734 Restricted:

Nonexpendable 64,991 73,025 27,859 19,088 19,399 20,429 23,357 25,919 28,770 31,892 35,316 Expendable 126,256 150,952 183,969 138,623 155,798 149,727 171,249 185,803 186,174 182,143 190,572 Unrestricted 505,810 610,298 736,896 784,455 946,248 1,167,617 1,295,974 1,444,584 1,567,480 1,703,971 1,980,440 Total net assets 1,956,624 2,138,931 2,285,490 2,417,561 2,676,867 2,959,001 3,112,532 3,249,880 3,387,926 3,536,420 3,713,062 Total Liab. and net assets $ 3,253,912 $ 3,466,718 $ 3,683,415 $ 3,814,246 $ 4,280,207 $ 4,556,576 $ 4,772,669 $ 4,988,533 $ 5,261,444 $ 5,561,238 $ 5,676,350

Strategic Financial Ratios

Primary Reserve 0.59 0.71 0.70 0.56 0.63 0.73 0.75 0.80 0.83 0.85 0.93

Viability 2.31 2.67 2.47 2.01 2.24 2.78 2.82 2.82 2.63 2.44 2.92

Return on Net Assets 9.4% 16.0% 3.9% -4.7% 11.4% 12.9% 5.1% 4.6% 4.5% 4.6% 5.0%

Net Operating Revenues Ratio 4.6% 7.3% 4.2% 2.8% 8.2% 8.9% 4.9% 4.2% 4.1% 4.3% 5.0%

Composite Financial Index

Moody's Financial Ratios

Total Resources to Debt 2.53 2.98 2.97 2.53 2.58 3.28 3.36 3.39 3.22 3.05 3.55

Expendable Resources: Debt 1.76 2.09 2.06 1.64 1.68 2.14 2.22 2.27 2.16 2.06 2.45

Debt to Cash Flow 3.22 3.00 2.90 2.56 2.72 2.30 2.84 3.01 3.12 3.16 2.69

Debt Service to Operations 4.7% 3.5% 3.6% 4.2% 4.1% 4.5% 3.8% 3.5% 3.8% 4.2% 4.7%

$000s

Statement of Net Revenues, Exp. and Changes in Net Assets

Fiscal Year Ending $000s

Inc

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S

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Measure 1

Measure 2

Measure 3

Measure 4

Measure 5

Measure 6

Measure 7

Measure 8

Year

Total

Resources:

Debt

2

Expendable

Resources:

Debt

2

Debt: Cash

Flow

2

Debt

Service:

Operations

2

Primary

Reserve

Viability

Ratio

Net

Operating

Revenues

Ratio

Return on

Net Assets

(3 Yr. Avg.)

FY06 Act 2.53 1.76 3.22 4.7% 0.59 2.31 4.6% FY07 Act 2.98 2.09 3.00 3.5% 0.71 2.67 7.3% FY08 Act 2.97 2.06 2.90 3.6% 0.70 2.47 4.2% FY09 Act 2.53 1.64 2.56 4.2% 0.56 2.01 2.8% 5.1% FY10 Act 2.58 1.68 2.72 4.1% 0.63 2.24 8.2% 3.6% FY11 Act 3.28 2.14 2.30 4.5% 0.73 2.78 8.9% 6.6% FY12 Est 3.36 2.22 2.84 3.8% 0.75 2.82 4.9% 9.8% FY13 Est 3.39 2.27 3.01 3.5% 0.80 2.82 4.2% 7.6% FY14 Est 3.22 2.16 3.12 3.8% 0.83 2.63 4.1% 4.8% FY15 Est 3.05 2.06 3.16 4.2% 0.85 2.44 4.3% 4.6% FY16 Est 3.55 2.45 2.69 4.7% 0.93 2.92 5.0% 4.7% Moody's FY10 Aaa Median1 2.90 1.90 3.71 3.81 Industry Benchmark 0.40 1:1 2-4% 3-4%

Aa1 Median 1.90 1.40 4.52 3.41 IU Benchmark 0.6 2:1 5.0% 3-4%

Measure 9

Measure 10

Measure 11a

Measure 11b

Measure 12

Year

Liquidity

Investment

Return

Core

Investment

Return -

Manager A

Core Plus

Investment

Return -

Manager B

Core Plus

Investment

Return -

Manager C

Core Plus

Investment

Return -

Manager D

Interest

Income

$000s

Capital

Gains/

(Losses)

$000s

FY04 1.1% 0.6% 0.7% 1.0% $ 15,000 FY05 2.3% 2.8% 6.2% 5.4% $ 22,000 FY06 4.3% 2.2% 0.3% 0.1% $ 26,000 FY07 5.3% 5.7% 5.5% 5.5% $ 38,500 $ (4,000) FY08 3.2% 5.4% 2.0% 7.0% $ 40,000 $ 3,000 FY09 0.6% 5.7% 2.3% 7.8% $ 30,000 $ (11,000) FY10 0.4% 6.1% 15.0% 16.0% $ 27,000 $ 24,000 FY11 0.4% 3.0% 6.7% 5.6% 9.5% $ 30,000 $ 15,000 FY12 FCST $ 32,500

Benchmark 90 Day T-Bill Barclay 1-3 Govt/Corp $20,000

University Dashboard Indicators

l---Barclays Aggregate---l

Strategic Financial Ratios

Debt Ratios

Goal 1: Maintain debt capacity consistent with Moody's Aaa

rating.

Goal 2: Support IU's pursuit of its mission through

continued financial strength characterized by best

practice and strong governance.

Goal 4: Generate strong, consistent

levels of interest income to support

strategic initiatives.

Goal 3: Exceed benchmark returns across all investment portfolio segments.

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Moody's does not project any ratios, including medians. FY10 medians are applied to FY11 – FY15.

1.50 2.00 2.50 3.00 3.50 4.00 4.50

FY06

Act

FY07

Act

FY08

Act

FY09

Act

FY10

Act

FY11

Act

FY12

Est

FY13

Est

FY14

Est

FY15

Est

FY16

Est

Total Resources to Debt

Indiana University Moody's Aaa Median Moody's Aa1 Median

Favorable 1.00 1.50 2.00 2.50 3.00 3.50

FY06

Act

FY07

Act

FY08

Act

FY09

Act

FY10

Act

FY11

Act

FY12

Est

FY13

Est

FY14

Est

FY15

Est

FY16

Est

Expendable Resources to Debt

Indiana University Moody's Aaa Median Moody's Aa1 Median

Favorable 1.50 2.50 3.50 4.50 5.50 6.50 7.50

FY06

Act

FY07

Act

FY08

Act

FY09

Act

FY10

Act

FY11

Act

FY12

Est

FY13

Est

FY14

Est

FY15

Est

FY16

Est

Debt to Cash Flow

Indiana University Moody's Aaa Median Moody's Aa1 Median

Favorable 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

FY06

Act

FY07

Act

FY08

Act

FY09

Act

FY10

Act

FY11

Act

FY12

Est

FY13

Est

FY14

Est

FY15

Est

FY16

Est

Debt Service to Operations

Indiana University Moody's Aaa Median Moody's Aa1 Median

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Debt Portfolio As of September 30, 2011

Strategic Student Data As of June 30, 2010

1

Total Long Term Debt (000s)

$869,763

Total Enrollment ( FTEs)

80,293

Total Debt w/Accreted CAB's (000's)

2

$886,037

Selectivity

72.6%

Fixed v. Variable

100% / 0%

Matriculation

39.6%

Average Life of Debt (yrs)

9.14

Reliance on State Support (% total revenues)

21.0%

Cost of Capital

3.99%

State Approp./Student

$6,847

Senior Debt Ratings

Aaa/ AA+

Net Tuition per Student

$10,675

State of Indiana Debt Ratings

Aa1/ AAA

Strategic Financial Data as of June 30, 2010 ($Ms)

Strategic Financial Ratios as of June 30, 2010

Total Financial Resources

8

$2,474

Total Financial Resources

:

Debt

3

2.6x

Total Expendable Resources

9

$1,611

Expendable Resources

:

Debt

4

1.7x

Monthly Liquidity

10

$1,275

Debt

:

Cash Flow

5

2.7x

Debt Service

:

Operations

6

4.1%

Operating Budget - FY 2011-12 (Excl. Fort Wayne) ($Ms)

Monthly Days Cash on Hand

7

206.9

Total Budget

$2,979

Indiana University Debt Profile

Balance Outstanding at September 30, 2011 (000s)

Credit Pledge

Student Fee Bonds (21-34-6)

$

463,056

Student fees

Revenue Bonds (21-35-3)

375,630

Housing,parking,athl. & ICR revenue; legally available funds

Energy Savings (21-34-10-7)

3,062

Energy cost savings

Certificates of Participation (21-33-3-5)

28,015

Interest income, ICR; legally available funds

Tax Exempt Commercial Paper (21-32-2)

-

Legally available funds

Total

$

869,763

Key Statistics - Academic Year 2011-12

Indiana University

(13)

Indiana University Debt Profile

As of September 30, 2011 Fixed , 100% Variable, 0% Debt Structure Fixed Variable Fee Replaced , 47% Non-Fee Replaced, 53%

Fee Replacement Status

Fee Replaced Non-F ee Replaced

20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 A n n u a l D e b t S e rv ic e Fiscal Year

Annual Debt Service Graph

As of September 30, 2011

GROSS F ee Replaced Debt Service GROSS Non-Fee Replaced Debt Service

Excludes Non-fee Replaced Debt Service from FY 2029 through FY 2038. 83%

17%

Tax Exempt Taxable (BABs)

(14)

- Highlight/ observation A

- Highlight/ observation B

- Highlight/ observation C

- Highlight/ observation D

- Highlight/ observation E

(Note: Indiana University format with ficticious data.) University "X" Operating Cash and Internal Loans

As of September 30, 2011 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000

1Q FY10 2Q FY10 3Q FY10 4Q FY10 1Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FY12

Operating Funds $000s

Liquidity Pool Core/ Core Plus Total Oper Funds (Right Axis)

$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000

1Q FY10 2Q FY10 3Q FY10 4Q FY10 1Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FY12

Internal Loans $000s

Outstanding Internal Loans Inter Loan Commitments Not Yet Funded Remaining Int Loan Capacity

$300,000 $400,000 $500,000 $600,000 $700,000 $800,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Liquidity Cash Forecast

Actuals FY10-11 Monthly High - Actuals FY10-11 Monthly Low - Actuals FY10-11 Revised Forecast FY11-12 Monthly High - Rev Fcst FY11-12 Monthly Low - Rev Fcst FY11-12

(15)

Investment Balances 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011

Liquidity Pool Core/Core Plus

Construction & Debt Financing Endowments & Grants

Total University Funds $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -Interest Income Liquidity Manager A Manager B Manager C Manager D Manager E Manager F Total $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -Investment Performance Liquidity Yield Merganser Aberdeen PIMCO Loomis Reams Western

Indiana University Foundation

Monthly Liquidity Days Cash on Hand

Principal Outstanding on Debt 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011

Student Fee Bonds (21-34-6) $ 479,861 $ 439,917 $ 439,917 $ 439,917 $ 507,317 $ 464,428 $ 464,428 $ 464,428 $ 464,428 $463,056 Student Union Bonds (21-35-2) - - - - -Revenue Bonds (21-35-3) 293,390 293,390 290,480 290,480 373,595 373,595 370,475 386,515 375,630 375,630 Energy Savings (21-34-10-7) 4,101 4,016 3,872 3,785 3,637 3,549 3,398 3,308 3,153 3,062 Certificates of Participation (21-33-3-5) 8,285 8,285 30,020 30,020 29,360 29,360 28,695 28,695 28,015 28,015 Tax Exempt Commercial Paper (21-32-2) - - - -

-Total $ 785,637 $ 745,608 $ 764,288 $ 764,202 $ 913,909 $ 870,932 $ 866,996 $ 882,946 $ 871,226 $ 869,763 Fee Replaced $ 426,623 $ 391,493 $ 391,493 $ 391,493 $ 447,043 $ 409,737 $ 409,737 $ 409,737 $ 409,737 $ 411,423 Non-Fee Replaced 359,014 354,115 372,795 372,709 466,865 461,196 457,259 473,210 461,490 458,340 Total $ 785,637 $ 745,608 $ 764,288 $ 764,202 $ 913,909 $ 870,932 $ 866,996 $ 882,946 $ 871,226 $ 869,763 Fixed - % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Variable- % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Tax Exempt - % 98% 98% 84% 83% 83% 83% 83% 83% Taxable - % 2% 2% 16% 17% 17% 17% 17% 17% Total 100% 100% 100% 100% 100% 100% 100% 100% Internal Loans 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011

Internal Loans Outstanding % of Operating Funds Internal Loans + Commitments % of Operating Funds Internal Loan Capacity @ 5% TTM Operating Funds @ 7% TTM Operating Funds % of Maximum Capacity Committed

Indiana University

(16)

Firm A Firm B Firm C Firm D Firm E Firm F Service(s) Provided Ticker Symbol Long-Term Rating Fitch Moody's S&P Short-Term Rating Fitch Moody's S&P Financial Highlights a 9 M E 9.30.11 ($ M s, except ratios) Market Capitalization 11

Tier 1 Capital Ratio 12

Total Capital Ratio 13

Tier 1 Leverage Ratio 14

Total Assets 15

Total Deposits 16

Long-term Debt Total Stockholders' Equity

Allow for Loan Loss/Retained Loans b

Net charge-off rate 17

9 M E 9.30.10 ($ M s, except ratios)

Market Capitalization 11

Tier 1 Capital Ratio 12

Total Capital Ratio 13

Tier 1 Leverage Ratio 14

Total Assets 15

Total Deposits 16

Long-term Debt Total Stockholders' Equity

Allow for Loan Loss/Retained Loans b

Net charge-off rate 17

Compensation & Fees

12 Trailing Month Total Fees 2009-11 Underwriting Engagement

Significant News

a

Source: EDGAR at www.sec.gov

Indiana University

Banking Relationships Summary Quarter Ending September 30, 2011

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Operating Cash and Short-Term Investm ents (Non-State Funds)

Annualized Monthly

Balance

Rate of Return

% of Total

Note: -Amounts shown reflect month-end balances

STIF

$

722,715,915

0.76%

62.13%

-Amounts shown reflect non-state funds and include

Temp Pool

388,920,291

0.36%

33.43%

affiliated entities of the University

Temp Pool (in CHIF)

40,414,767

-28.26%

3.47%

-STIF and BofA shown in cash basis; Temp Pool is market

Bank of America

11,162,426

0.30%

0.96%

value as of 9/30/2011

Total

$

1,163,213,400

100.00%

-Temp Pool includes portion of funds invested in STIF

-Temp Pool and Temp Pool in CHIF rates of return provided

by UNC Management Company

TREASURY DASHBOARD REPORT

For The University of North Carolina at Chapel Hill

University Cash and Investments

Quarter ending September 30, 2011

$200 $400 $600 $800 $1,000 $1,200 $1,400

In Millions

(19)

Long-term investm ents

Asset Classification

Balance

QTD

FYTD

Note: -Amounts shown are market value

CHIF

as of 9/30/2011

University Endow ment

$

984,440,479

-4.03%

-Long-term investment rates of return

UNC-CH Foundation, Inc.

212,093,977

-4.03%

provided by UNC Management Company

Other CHIF

926,256,936

-4.03%

Total

$

2,122,791,392

Central Bank Balance Sheet

Assets

Liabilities

Construction Funds

$

12,682,974

Total Debt

$

1,283,543,424

Cash & Short-Term Investments

107,065,322

Mark-to-Market on Sw aps*

117,230,831

F&A Debt Pool

25,558,108

Interest Payable

17,058,548

Loans Receivable

1,223,255,088

Expenses Payable

278,882

TOTAL ASSETS

$

1,368,561,492

TOTAL LIABILITIES

$

1,418,111,685

Equity

TOTAL NET ASSETS

$

(49,550,193)

* Note: Mark-to-market on Swaps fluctuates with interest rates

TOTAL LIABILITIES & EQUITY

$

1,368,561,492

(20)

Debt Rates

Investm ent Rates

Note: -CHIF and Temp Pool rates provided by UNC Management Company -STIF rates provided by NC Department of State Treasurer

Rates 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2 0-YR MMD (L/T in de x) U NC -CH S/T ra te

Note temporary spike in Fall 2008 at the peak of the financial crisis

-20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Bond Ratings (General Revenue Pledge)

Agency

Short-Term

Long-Term

Moody's

P-1

Aaa

S&P

A-1+

AA+

Fitch

F1+

AAA

Total Debt Outstanding

Debt Type

Am ount

% Allocation

L/T Bonds

$

1,233,201,330

93.6%

S/T Commercial Paper

83,650,000

6.4%

Total

$

1,316,851,330

100.0%

Com m ercial Paper Program

UNC-Chapel Hill

NC State*

Program Limit

$

400,000,000

$

100,000,000

Outstanding Balance

83,650,000

20,000,000

Available**

$

316,350,000

$

80,000,000

*UNC-CH manages a joint program between UNC-CH and NCSU.

**Subject to University liquidity considerations

Tax Status of Outstanding Debt

Tax Status

Am ount

% Allocation

Tax-Exempt

$

1,187,275,270

90.2%

Build America Bonds

112,805,000

8.6%

Taxable

16,771,059

1.3%

Total

$

1,316,851,330

100.0%

Debt Portfolio

93.6%

6.4%

L /T Bo nd s S/T Co mme rcia l Pa pe r

90.2%

8.6%

1.3%

Tax -Exe mpt Bu il d Ame ric a Bo nd s Tax ab le

(22)

Rate Structure

Blended Rate Charged to Customers

5.03%

Type

Am ount

% Allocation

Type

Am ount

% Allocation

Fixed

$

1,051,176,330

79.8%

Fixed

$1,170,861,330

88.9%

BABs

112,805,000

8.6%

BABs

112,805,000

8.6%

Variable

152,870,000

11.6%

Variable

33,185,000

2.5%

Total

$

1,316,851,330

100.0%

Total

$1,316,851,330

100.0%

*BABs - Build America Bonds

Derivatives

Counterparty

Notional Am t.

UNC Pays

UNC Receives

Effective Date

Term ination Date

MTM (09/30/2011)

Bank of New York

$

150,000,000

4.38%

67% 30d LIBOR

12/1/2011

12/1/2041

($82,254,674)

Wells Fargo

100,000,000

3.31%

67% 30d LIBOR

12/1/2007

12/1/2036

($29,662,135)

Lehman Brothers

19,685,000

5.24%

SIFMA

10/3/2000

11/1/2025

($5,314,022)

Synthetic Fixed vs. Variable

Execution Date

10/3/2000

12/5/2006

Traditional Fixed vs. Variable

4/19/2006

79.8%

8.6%

11.6%

Fixe d BAB s Va ria bl e

88.9%

8.6% 2.5%

Fixe d BAB s Va ria bl e

(23)

Debt Policy Ratios

Expendable Resources to Debt

Debt Service to Operations

Liquidity Relative To Peers

Liquidity relative to peer group of

similarly rated public institutions.

Graph show s number of days

of institutional liquidity by applying

the follow ing formula:

Operating Expenses

Current Assets-Current Liabilities

Ratios

1.0

1.5

2.0

2.5

3.0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Me asu re Po li cy Floo r

Projected

2.0%

3.0%

4.0%

5.0%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Me asu re Po li cy Ce il ing

x 365

Projected

(24)

Debt Maturity Schedule (notional values not including EPA debt)

Present Value of Debt Maturity Schedule (discounted at 5.03% not including EPA debt)

External Debt Service Structure

$20

$40

$60

$80

$100

$120

$140

$160

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

In Millions

$20

$40

$60

$80

$100

$120

$140

$160

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

In Millions

(25)

(26)

(27)

(28)

(29)

(30)

Debt Service Burden (%)

3

Average Age of Plant (Yrs)

6

x.x

Moody’s Aa median

x.x

Phenotype peer group 2010 median

Expendable Net Assets to Debt (X)

2.9

2.7

1.9

2.1

2.3

2.1

0

1

2

3

4

2007

2008

2009

2010

2011 2012 Q1

1

2

Debt Service Coverage Ratio (X)

4

Capital Intensiveness Ratio (%)

5

Operating Cash Flow Margin (%)

4

>2.0

x.x

Debt Policy

4.4

3.4

3.2

3.6

4.0

3.6

0

1

2

3

4

2007

2008

2009

2010

2011

2012F

2.1

2.4

2.6

3.2

2.8

2.7

0

1

2

3

4

5

2007

2008

2009

2010

2011

2012F

8.9

7.9

8.4

11.0

10.7

9.2

0

2

4

6

8

10

12

14

2007

2008

2009

2010

2011

2012F

10.0

8.9

8.2

5.0

3.4

5.3

0

2

4

6

8

10

12

2007

2008

2009

2010

2011 2012F

9.2

9.4

9.5

10.0

10.2

10.5

0

2

4

6

8

10

12

2007

2008

2009

2010

2011

2012F

<5%

>2.0

2.2x 2.1x 3.2x 3.9x 4.2% 4.3% 11.9% 7.4% 10.9 10.0 14.9%

(31)

Institutional Monthly Dashboard at Vanderbilt



One-page, 11x17, internal pdf distribution



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(asset allocation, rollforward, liquidity)



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

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

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

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(enrollments, admissions, retention, rankings)

