2011 Treasury Symposium

1. Managing Risk Around Capital Structure, Liquidity and Mission Martha Bradley, Washington University in St. Louis Jim Matteo, University of Virginia Charlie Giffin, J.P. Morgan

2. Today’s panel www.treasuryinstitute.org www.treasuryinstitute.org Charlie Giffin Executive Director Head of Public Finance Debt Capital Markets J.P. Morgan Jim Matteo Assistant Vice President for Treasury Operations and Fiscal Planning University of Virginia Martha Bradley Assistant Treasurer Washington University in St. Louis

21. Big issue #1: Sizing liquidity www.treasuryinstitute.org Sources Uses ($MM) Normal Stress Environment 1 Week 6 Months 12 Months 1 Week 6 Months 12 Months Liquidity Sources Tier 1 Cash 200 200 200 200 200 198 Tier 2 Cash 100 100 100 100 99 98 Treasury Investments 200 200 200 190 188 184 Total Committed Liquidity 500 500 500 490 487 480 Uncommitted Sources Endowment Distribution/Loan 250 250 250 - - - Bank SBPA 300 300 300 300 300 300 Bank Operating Lines 500 500 500 475 375 200 Debt Capacity (CP or Bonds) 250 250 250 - 200 150 Total Liquidity Sources 1,800 1,800 1,800 1,265 1,362 1,130 Liquidity Uses Uncommitted Funding (VRDBs, etc.) 300 300 300 300 300 300 Endowment Payout Holiday - - - - 350 350 Operational Contingency 50 300 500 100 500 500 University Commitments 50 200 250 50 200 250 Total Liquidity Uses 400 800 1,050 450 1,350 1,400 Committed Liquidity Ratio 1.25 0.63 0.48 1.09 0.36 0.34 Uncommitted Liquidity Ratio 4.50 2.25 1.71 2.81 1.01 0.81

25. WashU risk dashboard www.treasuryinstitute.org * Private institutions, definitions summarized in the appendix. Source: Moody’s Municipal Financial Ratio Analysis & J.P. Morgan, additional information available upon request. $5,039 $4,953 Total Cash and Investments Metric WashU Peer Avg* Ratings Aaa/AAA Aaa-A3 Net Assets ($mm) $5,680 $5,221 Total Volatility ($mm) $427 $474 Total Volatility (%) 7.52% 8.14% 95% Worst Net Assets ($mm) $4,843 $4,292 Operating Margin Volatility (%) 0.57% 2.03% Investment Portfolio Volatility (%) 8.50% 8.38% Operating Revenue from Investments (%) 15.0% 20.3% Balance Sheet Leverage 1.33 1.58 Annual Liquidity to Total Volatility 5.12 4.89 Annual Liquidity to Operating Risk 6.76 6.12 Annual Liquidity to Puttable Debt 6.28 4.50

27. UVa risk dashboard www.treasuryinstitute.org * Public institutions, definitions summarized in the appendix. Source: Moody’s Municipal Financial Ratio Analysis & J.P. Morgan, additional information available upon request. $3,569 $3,569 Total Cash and Investments Metric UVA Peer Avg* Ratings Aaa/AAA Aaa-Aa3 Net Assets ($mm) $4,803 $5,535 Total Volatility ($mm) $396 $442 Total Volatility (%) 8.24% 5.98% 95% Worst Net Assets ($mm) $4,027 $4,668 Operating Margin Volatility (%) 0.52% 1.53% Investment Portfolio Volatility (%) 7.78% 6.38% Operating Revenue from Investments (%) 9.20% 5.33% Balance Sheet Leverage 1.31 1.66 Annual Liquidity to Total Volatility 2.91 7.67 Annual Liquidity to Operating Risk 5.27 6.76 Annual Liquidity to Puttable Debt 7.20 5.63

28. UVa Central Bank risk profile www.treasuryinstitute.org Summary Pro Forma Risk Exposure Map 1

32. We welcome your questions www.treasuryinstitute.org www.treasuryinstitute.org

34. Study Results www.treasuryinstitute.org Source: Moody’s Municipal Financial Ratio Analysis & J.P. Morgan, additional information available upon request.

35. Study Institutions www.treasuryinstitute.org Quinnipiac University Rensselaer Polytechnic Institute Rice University Smith College Stanford University Tufts University University of Chicago University of Pennsylvania University of Richmond Vanderbilt University Vassar College Wake Forest University Washington University Williams College Yale University Private Institutions: American University Amherst College Boston University Brandeis University Brown University College of the Holy Cross Columbia University Cornell University Dartmouth College Duke University Emory University George Washington University Georgetown University Harvard University Johns Hopkins University Lehigh University Massachusetts Institute of Technology New York University Princeton University Public Institutions: California State University Indiana University Michigan State University The Ohio State University Pennsylvania State University Purdue University Rutgers Texas A&M System University of Arizona University of California University of Michigan University of Minnesota University of Missouri System University of North Carolina at Chapel Hill University of Pittsburgh University of Texas System University of Virginia University of Washington West Virginia University