Trustees September Meeting Coverage	Print Issue
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The Executive Committee of the University of Pennsylvania Trustees, as well as the Audit & Compliance Committee and the Budget & Finance Committee met on September 19.  Board Chair David L. Cohen commended the “spectacular Class of 2017 and President Amy Gutmann thanked Admissions Dean Eric Furda for his efforts in attracting the diverse group of new students. The president noted that she officially ushered in the 274th year of the University with the Opening Convocation (Almanac September 3, 2013).

President Gutmann said that the new dean of SAS, Dr. Steven Fluharty is “moving ahead with great vision.” Meanwhile, the new “long-awaited” opening of the Singh Center for Nanotechnology will be in October. The president said that the applied technology is at the nano scale, but the building is not small; it will inspire engagement.

Dr. Gutmann mentioned that longtime Penn faculty member Laurie Olin—who has served as an advisor for the Penn Connects—has received the nation’s highest civic honor for the arts, The National Medal of Arts (Almanac September 10, 2013) from President Barack Obama.

Provost Vincent Price discussed Penn’s Year of Sound, this year’s theme, which has prompted an exhibit now at the Penn Museum that spotlights the world’s first sound-synced expeditionary film shot during a 1931 Penn Museum expedition to a remote Amazonian jungle; it forms the centerpiece of Hollywood in the Amazon at the Museum through July 27, 2014.

EVP Craig Carnaroli presented the University’s financial report for the 12 months ending June 30, 2013. The total net assets were $11.3 billion, an increase of $1.6 billion over last June and $974 million over budget, driven largely by strong investment and operating performance. The AIF return of 14.4% versus the 6.5% budgeted and 1.6% the prior year. For the Academic component, net operating income totaled $147 million; strong operating contributions and the Juxtapid (a pill to lower cholesterol in patients with a rare genetic disease) royalty monetization contributed to a $127 million positive revenue variance. The Health System’s operating income totaled $185 million, consistent with budget. Outpatient activity in targeted programs partially offset inpatient declines.

Dr. Larry Jameson, EVP for the Health System and dean of Penn Medicine, said that they are preparing for the Affordable Care Act and dealing with the effects of sequestration.

Two resolutions, presented by the Budget & Finance Committee, were approved:

• to authorize development and construction of a 6-story office building at 3901-03 Walnut Street, ($11.9 million) to accommodate relocated offices of the General Counsel, Government and Community Relations and University Communications, necessitated by the plans to renovate and construct the Perelman Center for Political Science and Economics at 36th and Walnut (Almanac February 5, 2013).

• to authorize design and construction of a new College House on Hill Square (Almanac July 16, 2013) for an additional $114 million (total revised budget $125 million).