Coverage of Trustees' Meetings
September 25, 2012,
Volume 59, No. 05
Last Thursday, the Trustees of the University of Pennsylvania met prior to the grand opening celebration for Shoemaker Green.
The Budget & Finance Committee, unlike at past meetings, had only one resolution due to the change that was approved last year to require resolutions for projects greater than $5 million, rather than the old $1 million threshold. Projects between $1-5 million will be reported without a resolution.
EVP Craig Carnaroli presented a resolution to authorize University investment of up to $5 million in UPenn International to fund Penn’s China Center in Beijing.
Stephen Golding, vice president for finance and treasurer, introduced Joel Carstens, the new director of financial aid who reports to Michelle Brown-Nevers, associate vice president, student services and University registrar. Mr. Golding then reported on the financial reports for the 12 months ending June 30, 2012. For the Consolidated University, total net assets decreased from $9.830 billion to $9.694 billion; net assets from operating activities increased $296.6 million in FY12 compared to a $478.8 million in FY 11; net assets from non-operating activities decreased $433 million compared to $1.122 billion in the prior FY. The total endowment value was $6.755 billion; a $173 million increase over the prior year.
Bonnie Gibson, vice president, budget and management analysis, reported an increase in net assets of $130 million from operations in the academic component of the budget; tuition, fees, contributions and other income exceeded the budgeted revenue.
Keith Kasper, senior vice president and chief financial officer for UPHS, reported that total net assets decreased by 8.3 percent from $1.708 billion to $1.566 billion. Admissions were higher than the previous year; HUP was at 90 percent occupancy, which he said is the maximum for efficiency. There was a discussion about indirect cost recovery for sponsored research including the AARA (stimulus) funds. The current 4-year rate agreement based on FY2011 was 60 percent and has been negotiated for two more years at the same favorable rate with the base year now FY 2013. President Amy Gutmann credited Mr. Golding for this achievement.
Moody’s has recently combined public and private institutions into one methodology creating a new scorecard; Penn’s rating is Aa2, among the best in the country, which helps Penn obtain favorable rates in the debt market.
At the Executive Committee meeting, President Gutmann noted that Penn welcomed the Class of 2016 in a “sweltering but spirited” Convocation at the Palestra on September 4 (Almanac September 11, 2012). She also mentioned the new directors of the Penn Museum and the ICA, as well as the new post professor Edward Rock has filled. Dr. Gutmann also called the renovations of 1920 Commons “stunning” and said the Starbucks is the best anywhere. She also listed some of the Penn Connects 2.0 projects underway including the ARCH and Hutchinson renovations, the Spruce Street Plaza and the recently completed Shoemaker Green.
The president said that with three months left in the Making History campaign, more than 103,000 Penn alumni gave to annual giving. She said that Penn was recognized by FIRE for free speech, which she called a “cornerstone of academic rigor and progress.”
Provost Vincent Price discussed the open course initiative, Coursera, that Penn joined.
EVP Carnaroli summarized the financial reports which had been given in the earlier meeting.
Dr. Larry Jameson gave the Penn Medicine report and said that at the recent White Coat ceremony iPads were given out to the first and second year students, along with stethoscopes. He said 166 faculty were hired and 99 were promoted.
Audit & Compliance Committee presented the resolution to approve the audited financial statements from PricewaterhouseCoopers for FY 2012.