Trustees Meeting Coverage
November 7, 2017, Volume 64, No. 12
The University of Pennsylvania Board of Trustees held their fall meetings last week just prior to the start of Homecoming Weekend which included the Alumni Award of Merit Gala and the Penn vs Princeton football game (38-35).
During the Invocation at the Stated Meeting, Chaplain Charles (Chaz) Howard said that although this has been one of the more difficult semesters in recent memory with devastation at its worst due to natural disasters and the recent loss of four students, humanity at Penn is at its best, with students rising to the challenges.
The Trustees passed memorial resolutions for Richard P. Brown, Jr. who died May 29, and for Paul F. Miller, Jr., who died September 9 (Almanac September 19, 2017). They also passed resolutions of appreciation for the following trustees: Allan C. Bell, Judith L. Bollinger, David M. Brush, William W. M. Cheung, Joel M. Greenblatt as well as Andrea (Andie) Berry Laporte who was designated as an emerita trustee.
Two alumni trustees: Susanna E. Lachs and Mark B. Werner were elected term trustees for five-year terms.
President Amy Gutmann announced the New College House West. She also mentioned that the Campus Conversation that took place at the Annenberg Center as part of the Campaign for Community had productive small breakout sessions after the panels and discussions. She said there will be follow-up conversations in the College Houses and elsewhere.
Wendell Pritchett, who was attending his first Stated Meeting as Penn’s 30th Provost, said he was “humbled and honored” to be in his new role. He noted that PSOM’s department of medical ethics and health policy has introduced an initiative to address the rapidly changing health care landscape by advancing innovation among health care professionals worldwide through the online Master of Health Care Innovation.
EVP Craig Carnaroli gave the Financial Report for the first quarter of this fiscal year ending September 30. He reported that the Consolidated University’s total net assets were $16.5 billion, an increase of $1.7 billion over the prior year, driven largely by strong investment performance. Total revenue of $2.3 billion was $75 million, or 3.3% over prior year. Expenses of $2.3 billion were $32 million, or 1.4% over prior year.
On the Academic side, total revenue was $2 million before factoring in the Vet School appropriation of $30.14 million ($8.5 million for this quarter) which has finally been signed. Capital expenditures totaled $68 million, $18 million, or 21.1% below prior year. Operating and non-operating contributions totaled $436 million, consistent with the prior year.
On the Health System side, inpatient admissions were down and outpatient activity was mixed in high intensity services.
The Trustees authorized the following:
• financing of certain capital projects and working capital for the Health System, up to $600 million with the issuance of new indebtedness.
• the design and construction of an academic research building for Wharton and the replacement of substation 2 along with 3600 Woodland Walk improvements, $84.8 million.
• Houston Hall Food Court renovations, $15.15 million
• the design development phase of the New College House West, $8.5 million,
• ownership by Penn’s affiliate, UCA, of the limited partner interest in the 3939 Chestnut Street building which had previously been approved.