2019 Treasury Institute Symposium Agenda
January 27 – 30, 2019
The following agenda is subject to change.
Sunday January 27, 2019
12:00 − 5:30 pm Registration
2:00 − 3:00 pm Mapping Your Strategic Road map for Treasury
Maggie King, Senior Vice President and Manager Higher Education and Nonprofit Banking, Wells Fargo Bank N.A.; Kelli Shomaker, CPA, Vice President for Business and Finance/CFO, Auburn University; and Lori Snow, Director, Office of Treasurer Stanford University
High performing treasury teams know that a strong planning framework is critical to accomplishing their strategic goals and gaining buy-in from the administration and their Board. But creating a valuable framework is hard to develop and even harder to implement! This presentation will provide an overview and perspective from two universities on their treasury strategic planning process (when to do what, how to prioritize initiatives, and how to streamline and automate operations to accomplish goals and initiatives within the framework). They will discuss successes (and failures) as they developed their road maps. The presentation will also include insights from Wells Fargo treasury services on how universities can use their financial partners to share ideas, test strategies, and include innovative results in the strategic planning process.
2:00 − 3:00 pm Insurance and Risk Management - Issues and Options: Three Perspectives
Mark Haas, Vice President for Finance and Treasurer, Michigan State University; Timothy T. Hesler, CTP, Assistant Treasurer, New York University; and Cheryl Lloyd, Associate Vice President and Chief Risk Officer, University of California, Office of the President
With more Treasury groups responsible for managing insurance risk, this session will provide an overview of risk management and insurance, including options like self-insurance, purchasing insurance from carriers, and forming/joining a captive insurance company or consortium. Treasurers are already savvy about mitigating financial risks, and the panel will present the necessary broadening into insurable risk, which adds depth to career development and technical expertise. We will cover the issues that give rise to creative solutions like captive insurance, including medical malpractice insurance cost increases in the 1980s, to current topics like Title IX, sexual assault, traumatic brain injury/concussions, cyber fraud insurance. Also, we will touch upon litigation when other resolutions are not possible. The presentation will include three overviews of captive companies in higher education: Pinnacle, formed in 1980 by a consortium of 17 university owners in the Northeast; and Fiat Lux, a single parent captive for the University of California system formed in 2012; and forming a new cell captive, Michigan State University.
3:00 − 3:15 pm Afternoon Refreshment Break
3:15 − 4:15 pm Economic Update: Trade, Tariffs, and Country Risk
An update on Geopolitics and Trade Wars and the Impact on Investment Markets.
4:15 − 5:15 pm Idea Exchange
Ruth Harpool, AAP, APRP, CTP, Managing Director, Treasury Operations, Indiana University
This session is a perennially popular program for both the Program Committee and the attendees. It is an open forum for participants to discuss their pressing issues and learn solutions from other schools. Many use the session to identify colleagues for further conversations during meals and networking breaks.
5:30 − 6:00 pm New Attendee Reception
First time attendees have the opportunity to meet the Treasury Institute’s Board of Directors.
6:00 − 7:00 pm Welcome Reception
Monday January 28, 2019
7:00 am − 5:00 pm Registration
7:00 − 8:00 am Breakfast
8:00 − 8:30 am Opening Remarks
Jim Matteo, CTP, CMA, Associate Vice President and Treasurer, University of Virginia and Chairman, Treasury Institute for Higher Education and Jon Speare, Executive Director, Treasury Institute for Higher Education
8:30 − 9:30 am ROI That Matters: Building High Performance Teams Based on Core Values
U.S. colleges and universities are often thought of as microcosms of U.S. society. Reflecting some of the most essential elements of the American character, U.S. institutions of higher education continue to play an important role in providing opportunities for students to achieve success in life, work, and citizenship and for American democracy to continue to thrive. At a time when the American moral character is at the forefront of public consciousness, colleges and universities, too, struggle with their own challenges of public opinion. While the very value of higher education seems to be under attack, many institutions also grapple with some of the most complex and challenging issues of our time, such as the tensions between free speech and inclusion, and a cultural movement ready and willing to stand up against the historical silencing of sexual assault. This session will engage in a discussion on the ways in which college and university administrators can help address crises on campus when handbooks, speech codes and internal judicial processes fail. Participants will have a better understanding of the following:
The role of campus leaders in developing, implementing, and overseeing cultural change based on shared values, codes of ethics and connection
The limitations of procedural protections in creating an inclusive environment for all students, faculty and staff
Strategies for responding when crises occur
Strategies for allowing all voices to be heard
9:30 − 9:45 am Morning Refreshment Break
9:45 − 11:15 am Cybersecurity: Protecting Higher Education
Gus Anagnos, Chief Information Security Officer, University of Southern California; Jason Belford Chief Information Security Officer, University of Virginia; and Lawrence Zelvin, Global Head of Cyber Security Fusion Center, Citibank Global Cybersecurity
Cybersecurity remains a critical risk for higher education institutions to manage. Sadly, since cyber incidents continue to morph, we can only mitigate the risk, but not eliminate it. Boards continue to be alarmed, as universities, businesses, banks, and consumers strive to safeguard against fraudster adversaries. Mr. Zelvin will discuss the evolution of cyber threats, current issues, and what we can do to help protect our institutions and their financial assets, including managing, responding and strengthening preparedness for cyber threats through the fusion of intelligence. Mr. Anagnos and Mr. Belford will delve into the perspectives of two Chief Information Security Officers in hardening their cybersecurity infrastructure, technology and awareness at the University of Southern California and University of Virginia.
11:15 − 11:30 am Transition to Concurrent Sessions
11:30 am − 12:30 pm Exploring Payment Options in a World of Technology Innovations. How Do I Keep Up with the Joneses?
Seth Blacher, Payables Product Manager, US Bank; Kathy King-Griswold, CTP, CBM, Associate Treasurer, University of Rochester; and Lisa Zimmaro, Esq., Associate Vice President, Risk Management and Treasury, Temple University
Federal Reserve's Faster Payments initiative is resulting in new innovative payment technologies. Same Day ACH, Zelle (ClearXchange), and Real-Time Payments offer opportunities to quickly, efficiently, and securely distribute and receive payments for businesses and consumers. With this potential re-definition of the way payments are made, it's important to critically think through the impact on a companies' working capital strategy. We will explore the potential impact on working capital that these new payment technologies create by discussing the benefits and the risks associated with an effective and defective deployment plan.
11:30 am − 12:30 pm Looking at Both Sides of a College Merger: A Boston University / Wheelock College Case Study
Chris Cowen, Managing Director, Bank of America Merrill Lynch; Martin J. Howard, CPA, CFA, CFP, Senior Vice President, Chief Financial Officer and Treasurer, Boston University; and Ranch Kimball, Trustee, Boston University (Wheelock College)
Against a background of the increased merger/acquisition/restructuring higher education landscape, we will hear representatives discuss a recently consummated merger from two perspectives. We will discuss the reasons why Wheelock decided it needed to explore alternative structures, and why they chose Boston University. BU will discuss why they decided to make a proposal to Wheelock, and then both sides will present an update on how the new relationship is working out.
12:30 − 1:30 pm Networking Lunch
1:30 − 2:30 pm Hidden Treasures: Monetizing Licensing and Royalty Streams
Angela Kujak, J.D., Senior Director of Contracts, UCLA Technology, Development Group; Katrina Niehaus, Managing Director, Goldman Sachs & Co. LLC; and Brett Sweet, Vice Chancellor for Finance and Chief Financial Officer, Vanderbilt University
In 2016, UCLA and Howard Hughes Medical Institute sold their royalty streams in Xtandi, a prostate cancer drug, for $1.1 billion – the largest royalty sale at the time. In 2018, Vanderbilt University outdid UCLA. For nearly $1.5 billion, the University sold 30 years’ worth of licensing revenues that the Medical Center paid to the University for the use of its name. The nearly $1.5 billion infusion represent the largest single, unrestricted addition to a college or university endowment ever. It boosted the size of Vanderbilt’s endowment by ~30% and led to a Moody’s upgrade to Aa1 – with no corresponding debt on either the Medical Center or the University’s balance sheet. What was the catalyst for this transaction? What were key provisions in the affiliation agreements between the University and the Medical Center that made it possible? What risks are investors taking and how was this structured off balance sheet? Most importantly, what value might be embedded in IP, royalties or other licensing streams at your institution and how can you unlock that value?
2:30 − 2:45 pm Transition to Concurrent Sessions
2:45 − 3:45 pm Enterprise Risk Management: Learning from the Corporate World
Enterprise Risk Management is a growing and ever more crucial discipline as organizations navigate the complex web of risks that are rapidly emerging and challenging the way they do business. For the most part the early adopters of ERM practice were in the corporate world, but given higher education institutions also operate in this world of uncertainty they, too, can benefit from an ERM way of thinking. Today’s session will focus on some of the processes and techniques that are in practice to navigate risk and protect and enhance the reputations and financial condition of institutions today and for the future.
2:45 − 3:45 pm Yield and the Curve: What the Market is Telling You
This panel is designed to be a technical “deep dive” into yield relationships and the term structure of interest rates which will address the following issues:
Borrower vs buyer perspective on yield and maturity relationships.
Term structure of interest rates – how the yield curve reflects market expectations of rates in the future and how an implied forward curve is derived.
How to think about and derive credit spreads, cost of liquidity, and value of tax-exemption using yield curves.
What does it mean to be “market neutral”?
How can bond yields and forward rates be used in developing financing strategies/guidelines to reflect an institution’s rate view, if any?
Approaches to integrating an evolving rate and term view into an existing debt portfolio. Development of an institution-specific market dashboard.
3:45 − 4:00 pm Afternoon Refreshment Break
4:00 − 5:30 pm Debt Workshop/Toolkit: Innovation and Changes in Debt Financing
Mark DeLorenzo, Associate Vice President for Finance and Treasurer, Emory University; Bill Starkey, Ph.D., Senior Associate Treasurer, Treasury, University of Washington; and Harper Watters, Managing Director, Wells Fargo Securities
The goal of this workshop is to facilitate an exchange of dialogue and ideas in order to provide practical guidance on how to think about and manage their debt toolkits. LIBOR is going away after 2021; investor preferences are increasingly dynamic; the yield curve is flat and tax-exempt and taxable rates are nearly on top of one another; bank facilities are impacted by tax reform; debt capacity is not infinite; and auxiliaries and assets deemed not core to the mission are being financed and monetized in innovative ways. Within this context, we’ll ask what institutions are broadly doing in the capital markets? And what do you wish you knew before you started your process? In short, what are the options? We’ll cover these topics and be sure to make time for whatever else the audience wants to discuss.
4:00 − 5:30 pm Investing for the Treasurer: Fixed Income and Long-term Investment Management
A primer in fixed income investing and long term endowment management, along with a focus on current strategies and current environment.
5:30 − 7:00 pm Networking Reception
Tuesday January 29, 2019
7:00 am − 5:00 pm Registration
7:00 − 8:00 am Breakfast
8:00 − 8:15 am Opening Remarks
Mary Peloquin-Dodd, Interim Vice Chancellor for Finance and Administration, North Carolina State University
8:15 − 9:15 am Teaching the Machines: Artificial Intelligence and Machine Learning
Anish Bhimani, Chief Information Officer, Commercial Bank, JP Morgan Chase
Machine Learning and Artificial Intelligence technologies have had a disruptive effect on a wide array of industries and Higher Education is a field rich with data that can be put to work. These technologies present a broad set of opportunities for colleges and universities to become leaner and faster in their admissions and finance offices, while delivering stronger student outcomes through individualized learning plans and automated recognition and response to at-risk students. At the same time, concerns over data privacy and the interpersonal and interdisciplinary tenets of liberal arts education present barriers to the industry accepting and harnessing these opportunities.
9:15 − 10:15 am TED-Style Talks on Innovation
John Augustine, Managing Director, Barclays; MaryFrances McCourt, Vice President Finance and Treasurer, University of Pennsylvania; Dr. Morgan R. Olsen, Executive Vice President, Treasurer and Chief Financial Officer, Arizona State University; and Stephanie Pianka, Senior Vice President for Finance and Budget and Chief Financial Officer, New York University
The concept of innovation has become so commonplace in contemporary discourse that it can often be difficult to identify. In today’s U.S. higher education landscape, innovation is unmistakably a trending topic. In the broadest sense, innovation can be defined as the development and implementation of new ideas, methods, and processes. Whether it is utilizing new technology or pedagogy in the classroom, or an alternative financing structure to fund capital projects, colleges and universities are constantly innovating to adapt to constantly changing market dynamics. Participants will have a better understanding of the following:
How institutions define innovation
Navigating institutional barriers to innovation
Strategies to encourage and foster a culture of innovation
10:15 − 10:30 am Morning Refreshment Break
10:30 − 11:30 am Here Today, Gone Tomorrow, Assessing Inter-generational Equity
Higher education institutions regularly manage the competing interests of current versus future students, putting the balancing act of inter-generational equity at the forefront of decision-making for treasury professionals. This becomes particularly important in the context of endowment management where institutions implement strategies related to investments, endowment spending and fundraising to benefit both current and future students. This panel will explore how institutions assess inter-generational equity in the context of endowment management with a focus on how institutions create an optimal strategy that protects the long‐term purchasing power of the endowment while providing an appropriate amount of funds for the operating budget.
10:30 − 11:30 am Perspectives on Rating Agencies and Credit Risk
Jessica Matsumori, Associate Vice President of Finance, Santa Clara, University; Marc Savaria, Vice President, Senior Municipal Bond Analyst, Eaton Vance Management; and Oliver Zlomislic, Executive Director, Morgan Stanley & Company, LLC
This panel examines perspectives of the credit landscape through the lens of former rating analysts, a current university finance professional, and an investor. Rating agencies and investors have each evolved with higher education industry trends, business drivers, and risks, requiring university finance professionals to remain informed and attentive to expectations of those reviewing credit. This interactive session will solicit questions and feature discussion surrounding best practices in rating agency discussions, key topics concerning investor outreach, and learnings across the industry from a university’s perspective.
11:30 − 11:45 am Transition to General Session
11:45 am − 12:45 pm Washington Update
Matthew Hamill, Senior Vice President, NACUBO
Higher education is under intense scrutiny on Capitol Hill and budgetary pressures continue. The Department of Education is writing new regulations and Congress is discussing reauthorization of the Higher Education Act. Our speakers will share observations and update attendees on the political and economic climate as lawmakers wrestle with budget, tax, and policy.
12:45 − 1:45 pm Networking Lunch
1:45 − 2:45 pm Alternative Strategies for Short Term Debt and Liquidity
Barbara Fahnstrom, Finra Series 7 & Series 63, Public Finance Relationship Manager, PNC Bank N.A.; Mike Hastings, Manager, Debt and Real Estate, University of Notre Dame; and Brett Padgett, Assistant Vice President for Financial Planning and Analysis and Chief of Staff for Finance and Administration, University of Chicago
Historically, many universities maintain significant cash and short-term investment balances to meet liquidity needs of the enterprise. As an alternative approach, this session will explore short-term debt strategies that support liquidity needs related to working capital, bridge financing for capital projects, acquisitions and business development, and endowment investment strategies. We will discuss various structures including bi-lateral bank lines of credit, multi-bank syndications, taxable and tax-exempt commercial paper and the advantages and disadvantages of each including cost, ease of execution, relationship management, rating agency views, and liquidity support.
1:45 − 2:45 pm Idea Exchange II
Ruth Harpool, AAP, APRP, CTP, Managing Director, Treasury Operations, Indiana University
This second Idea Exchange session allows participants to discuss issues and questions in an open forum with the experience and connections of the previous sessions.
2:45 − 3:00 pm Afternoon Refreshment Break
3:00 − 4:00 pm Process, Innovation and Robotic Automation
In this panel, we will hear from business officers that are employing Machine Learning and AI at their schools, discuss the implementation and results of these strategies, and the lessons learned along the way. From this concurrent session, the audience will learn the following:
How peer organizations are utilizing machine learning and AI technologies and their impacts on campus
What risks and roadblocks come with the implementation of these technologies
How to engage campus leaders and business partners to drive adoption
3:00 − 4:00 pm Lessons Learned in P3s
Ryan Conway, Director, PFM Financial Advisors LLC; Sandra Lynn Neuse, Associate Vice Chancellor of Real Estate and Facilities, University System of Georgia; and Steve Park, Partner, Ballard Spahr, LLP
The term “P3” is commonly used for a wide range of financing alternatives that institutions of higher education have increasingly utilized in recent years – privatized student housing projects, parking and energy concession agreements and alternative delivery of academic buildings. When structured well, these projects can improve quality and efficiency on campus and support the institution’s mission and credit. While P3s are a consistent topic at conferences and in the press, the challenges some projects have experienced are rarely highlighted. Failed procurements, renegotiation of key provisions during implementation, and financial challenges can have negative impacts on an institution’s credit and reputation. Takeaways: What are the lessons learned from the University System of Georgia’s initial student housing P3? How can institutions be more proactive in performing due diligence for alternative finance projects, and gain a more detailed understanding of the balance of governance and risk transfer inherent in these projects?
4:00 − 4:15 pm Transition to Concurrent Sessions
4:15 − 5:15 pm Global Strategies: Where We've Been and Where We're Going
In an increasingly complex and competitive global education landscape, what strategies should Higher Education institutions adopt to make an impact? With a global lens, this session will discuss both cultural and technology trends impacting Higher Education and the lessons that can be learned from trends in the broader nonprofit sector. We will discuss those areas globally that are more welcoming to US institutions, and explore the ways in which technology innovations in education delivery are changing the landscape. If you are interested in global trends, and excited to learn about what is likely in the future, this session will provide plenty of stimulating ideas.
What are the trends from the broader Nonprofit Sector that the Education sector can expect to see for US nonprofits operating globally
What US universities are delivering education overseas in developing world – what programs?
4:15 − 5:15 pm Lease Accounting and Vendor Financing, FASB/GASB Accounting Changes
This session will feature two experienced professionals who will provide an update on major upcoming changes in both FASB and GASB Accounting. The pace of change in accounting is increasing and institutions are grappling with the operational and credit impacts of these changes, ranging from display of financial statements to accounting for Other Postemployment Benefits. One such change is GASB 75 —with substantial lease liabilities expected to be added to institutional balance sheets. How are private universities responding to similar change on the FASB side, and are they finding useful tools in recording leases? David Woodall, Assurance Partner from PwC, will provide an overview of the changes affecting both private and public universities, and Susan Krauss, from the University of Kentucky, will provide an update on how that institution perceives the changes as well as any strategies they are pursuing to implement the new standards within their financial statements.
Wednesday, January 30, 2019
7:00 − 11:30 am Registration
7:00 − 8:00 am Breakfast
8:00 − 9:30 am Treasury Competencies for the Future: Looking for the Next Leaders
Amy Kweskin, MA, Vice Chancellor for Finance and Chief Financial Officer, Washington University in St. Louis; Jim Matteo, CTP, CMA, Associate Vice President and Treasurer, University of Virginia; and Elizabeth Neumann, Managing Director, Koya Leadership Partners
Finance and Treasury professionals in Higher Education more than ever are being looked to as strategic leaders at their institutions. Additionally, the mounting challenges of cost and enrollment pressures will add to the financial and strategic complexity in coming years. The skill sets required to lead through these changes go way beyond technical skills in order to lead organizations, engage staff, and navigate risk. Today’s session will focus on the skills that will be needed to more successfully lead in the next decade.
9:30 − 9:45 am Morning Refreshment Break
9:45 − 11:15 am Evolving Electronic Payments: A Digital Journey
Northwestern University was at the forefront of changes in payment processes in higher education—a $2B shift to electronic payments. Why and how did they do it? Review, in-depth, the business case for this decision, the political challenges they faced, the RFP decision and implementation experience, the university’s quantitative achievements after X years (including progress made toward reducing paper, checks, and fraud), and future enhancements in the works. More than a case study, this session covers the hard-hitting and candid challenges and successes applicable to any industry.
9:45 − 11:15 am ERP Implementations: Lessons Learned Through the Implementation Lifecycle
MaryFrances McCourt, Vice President Finance and Treasurer, University of Pennsylvania; Brian T. Smith, CFA, Senior Assistant Vice Chancellor and Treasurer, The University of North Carolina, Chapel Hill; and Nina Thanjan, Managing Director, Deloitte
To implement or not to implement. That is a significant question in higher education due to a number of factors including cost, timing, complexity, change management and culture. Whether an ERP implementation is a few months or a few years old, whether it is an upgrade or a new implementation, the financial and cultural well-being of the entire organization is at stake and the associated costs of failure range from disruptive to catastrophic. With so much on the line, consider what your organization can do to minimize risk and make your ERP project implementation journey as smooth as possible. This session will explore an ERP implementation lifecycle from the perspective of a large public institution, a large private institution and an implementation partner and include (1) planning and selection (2) design, build and implement (3) post-implementation review and lessons learned. Remember, an ERP implementation is a journey, not just a destination.
11:15 am Symposium 2019 Concludes