of the Stated Meeting of the University Trustees
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.
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
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.
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.
Judith Rodin mentioned that 1,800 alumni attended the Symposium
on Terrorism, which was recently reprised in New York.
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.
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.
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
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.
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.
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.
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.
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.
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.
Investment Board reported "a reversal of misfortune"
with a positive return primarily from equity portfolios, outperforming
benchmarks for the year ending June 30, 2001.
Alumni report noted an ongoing effort to study the Sweeten Center's
wiring and telecommunications deficiencies.
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