Strategic Area of Focus:
Financial Sustainability

The most challenging issue confronting the University in recent years has been the uncertainty and volatile financial picture of the Virgin Islands Government. This ongoing challenge has thwarted efforts to increase compensation for employees, hampered growth in human resource development and hiring, and limited the University's capability to respond to demands from the community for expanded educational programs.

In an era of declining state appropriations, acquiring new revenue sources and reducing operational costs will be crucial to effectively managing institutional change and renewal. Focusing on financial sustainability will continue to be a strategic area of focus for the University through 2012.

These perspectives, coupled with the future state and the SWOT analysis examining the internal and external environments impacting the University, factored into the development of VISION 2012 and resulted in the identification of financial sustainability as a key strategic area of focus for UVI to realize its mission and vision while maintaining a strong financial operation.

Strategic Goal #3 supports the desired future state for a strong, diverse financial base in support of high quality educational programs and institutional change and success linked to UVI's mission components through the operational objectives and related measures of accomplishment that follow.

Strategic Goal #3: Enhance and diversify the University's financial base through the development of new revenue streams and realization of cost savings.

Operational Objectives
and Measures of Accomplishment

The following operational objectives and measures of accomplishment detail the specific initiatives and activities necessary to build a strong, diversified financial base in support of UVI's mission and vision through 2012.

3.A. Assess markets for UVI products and services that might have the potential to provide significant new revenues.

1. Update market assessments for delivery of instruction or training via e-learning technologies and analyze potential net profitability by 9/30/2008.
2. Assess markets and develop appropriate strategies for intensive workshops and/or education/training experiences for non-residents, including capitalizing on the VI as a resort destination by 9/30/2008.
3. Develop income and expense projections for CELL operations that identify the level of resource subsidy required based on mission orientation by 9/30/2007.

3.B. Meet internal and external demands, institutional goals and cost reductions by improving operating financial management systems.

1. Hire an Internal Auditor by 9/30/2006.
2. Improve the development and management of financial resources at the component level by 9/30/2007 by implementing a two-year budgeting process.
3. Partially address internal energy demands by 2007 and eventual cost savings by 2012 through expansion of renewable energy programs including, but not limited to, wind energy.
4. Reduce subsidies to identified auxiliaries from appropriation revenues to zero by 9/30/2008. (In 2006, auxiliaries include UVI bookstores, student and faculty/executive housing, Sports and Fitness Center and the Reichhold Center for the Performing Arts.)

3.C. Increase annual giving targets and ensure capital campaign objectives are appropriately linked to institutional, student and academic needs.

1. Update annually the Institutional Advancement Strategic Plan beginning 2007.
2. Raise $1.5M in external funding for FY 2006, $1.7M for FY 2007 and $1.8M for FY 2008.
3. Launch private phase of UVI Capital Campaign by 9/30/2008.
4. Increase annual gifts to the Reichhold Center by 10% annually for FY 2006, FY 2007, and FY 2008.
5. Close out the 50th Anniversary Capital Campaign by 9/30/2012.

3.D. Increase mission-centered grant acquisitions that support and promote research and community development.

1. Increase the number of mission-centered, sponsored-program grant acquisitions by 10% annually through 9/30/2012.
2. Develop policies for the allocation of indirect costs to improve support for grant activities and incentives for grant acquisition.
3. Acquire local matching funds for the VI-EPSCoR program.
   1. Acquire $154,210 in FY 2006.
   2. Acquire $142,873 in FY 2007.
   3. Acquire $310,607 in FY 2008.