TRUSTEES

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Highlights of the Stated Meeting of the University Trustees

When the Trustees gathered last Friday for the Stated Meeting, the first resolution presented by Chairman James Riepe was a Memorial Resolution for the Penn Alumni Victims of September 11 followed by a moment of silence for all victims and their families.

Then came half a dozen resolutions of appreciation for trustees Jon M. Huntsman, Jr.; Reginald H. Jones; Jerry A. Magnin; Andrea Mitchell; and Pamela P. Reis as well as one for Russell E. Palmer --who served as chair of the UPHS board, 1999-2001--naming him an emeritus trustee.

The creation of an umbrella governance structure called Penn Medicine was approved to oversee the academic, research, and clinical operations of the School of Medicine and the Health System.

Michael L. Tarnopol was reelected as vice chair the board,; Natalie I. Koether was elected a vice chair of the board and Jon M. Huntsman was elected a term trustee and a vice chair, all effective November 2, 2001-June 30, 2002.

President Judith Rodin mentioned that 1,800 alumni attended the Symposium on Terrorism, which was recently reprised in New York.

Provost Robert Barchi commended Dr. Cynthia Otto, assistant professor of critical care, clinical studies, in the School of Veterinary Medicine, for her work at Ground Zero for nine days as part of the Pennsylvania Emergency Task Force. Dr. Otto cared for many of the 300 search and rescue dogs who needed medical attention.

EVP John Fry presented the financial report for the fiscal year ending June 30, 2001, and noted that on a consolidated basis, the net assets of the University increased by over $268 million. Revenue reached almost $3.2 billion, a 6.1% increase over the prior year with the academic component comprising 45.5% of the revenue with the Health Services component constituting the majority of the balance of 52.6%. The University reported a net gain on its investment portfolio of $34.5 million, compared to a loss on investment of $145.6 million in 2000. Penn performed significantly better than its peer institutions and its benchmark for 2001. The growth of contributions was 7.6% over the prior fiscal year.

Dr. Arthur Rubenstein reiterated that there is good news financially speaking at the Health System, now Penn Medicine. He said that many experts are involved in the response to the threat of bioterrorism and that they believe they have an adequate supply of pharmaceuticals on hand.

The Trustee Committee Reports began with the Academic Policy Committee, which presented a resolution to create Penn Praxis, Inc., a 501c(3) subsidiary to enable GSFA to carry out practical or applied projects for external clients under the direction of GSFA faculty.

Budget and Finance presented three resolutions: the first one authorizes infrastructure relocation and improvements on the former Civic Center site; the next authorizes the issuance of up to $75 million of long term debt to fund capital projects; and the last one amends the prior authorization allowing UPHS to enter into lease financing agreement up to $30 million.

The Development Committee's resolution establishes a Penn dual qualified entity in the U.K., enabling a donor who pays both U.S. and U.K. taxes to take a deduction from both. The External Affairs Committee reported that Penn had numerous positive news stories aired on television and in print, especially in daily newspapers last year and Wharton's communications efforts are particularly international in scope. The Center for Community Partnerships is approaching its tenth anniversary with 126 academically based community service courses which have been widely replicated in the U.S. and abroad. In response to the September 11 tragedy, the University used web sites, e-mail and voice broadcasts to quickly reach the Penn community including the 440 students studying abroad who were also e-mailed immediately to verify their safety.

The Facilities and Campus Planning Committee reported that it is planning on developing an architecture subcommittee to develop guidelines and design standards for future campus buildings. The Hamilton Village high-rise renovation project is going to be done in phases over the next several summers as funding is available, with sprinklers getting priority. The long-abandoned Conrail building on Market between 31st and 32nd is being renovated by a developer; both Penn and Drexel are considering using it for interim swing space for student housing, although plans are not yet finalized. Construction for phase I of the Penn-assisted PreK-8 school is 40% complete and the new building is scheduled to open next September. There are now 75 students attending kindergarten and first grade in the school which is using the old Divinity School buildings.

The Neighborhood Initiatives Committee cited Clean & Safe, one of the University City District's projects, which has improved the quality of life in the area; a reduction in crime in the past few years; housing values have increased dramatically and approved applicants for the University's mortgage program await availability of single family homes within the program's boundaries.

The Student Life Committee focused on the student dining options and meal plans as well as the support to students here and abroad in the aftermath of the terrorist attacks.

The Investment Board reported "a reversal of misfortune" with a positive return primarily from equity portfolios, outperforming benchmarks for the year ending June 30, 2001.

The Alumni report noted an ongoing effort to study the Sweeten Center's wiring and telecommunications deficiencies.

New overseers were appointed: Eleanor Graham Claus and J. Mark Baiada to School of Nuring's board; Gerald Chalphin, Zahi Hawass, and Deborah L. Wince-Smith to the Museum's board; Stuart Jan Netsky to the ICA's board; Lynn Yeakel as chair of the Annenberg Center's board; Alan A. Shuch, Andrew Viterbi, and Walter Zifkin to the Center for Advanced Judaic Studies board; Supat Jumbala to the SEAS board.