Featuring discussions that ranged from the University's financial status to the impending vacancies in the higher administration, the Board of Trustees met last Thursday and Friday for their annual spring set of meetings.
Over the course of the two days, the trustees and Penn's top administrators attended several committee meetings to discuss the University's academic initiatives, plans for physical improvement and the budget for the upcoming fiscal year.
These sessions culminated in a stated meeting on Friday morning, during which the Board passed a number of resolutions for the upcoming academic year.
A key item on the agenda for the spring meetings was an update on the University's and Health System's finances for Fiscal Year 2002, which will come to a close in July.
"We saw some preliminary numbers and they all looked pretty good," Board of Trustees Chairman Jim Reipe said. "The Health System is going to come in the black again, and the University is coming in good contiditon related to its budget as well."
At the Budget and Finance Committee meeting on Thursday, University Treasurer Craig Carnaroli reported that the University's endowment through April 30 saw an increase of 3.9 percent, compared to the benchmark, which was down 2.8 percent.
Nevertheless, Carnaroli did note that the University's operating activities had declined.
"The operating activities were slightly below, primarily due to a decline in short term income, as short term investments have declined," Carnaroli said.
Penn's Health System, on the other hand, reported an operating income of $17.6 million, compared to a budgeted $15.1 million.
"This was a result of an increase of volume in patient admission in all hospitals," Carnaroli said.
The Trustees also approved of the preliminary capital and operating budgets for the University and Health System for FY '03.
Vice President for Budget and Management Analysis Michael Masch proposed a $1.748 billion operating budget for the University in FY '03.
In turn, the proposed operating margin for the Health System was estimated to be $31.8 million for the next fiscal year.
According to Reipe, these initial proposals take into consideration the various challenges that the University and Health System will be facing over the next year.
"The equity market is not rewarding our endowment with big increases, and this has implications for us in terms of investment income," Reipe said. "And the health care environment continues to be a very difficult one both nationally and locally."
Nevertheless, Reipe said that administrators have taken these concerns into consideration in their initial drafts of the budgets.
"The administration proposed a very tight set of budgets which recognize the different environment we're going to be in, so we're very pleased in that respect," Reipe said.
On Friday, the Board also received an update on the Health System's strategic planning process from Medical School Dean Arthur Rubenstein.
"We're reviewing all aspects of our activities in a very proactive way and I think it's very exciting for the School of Medicine to do that," Rubenstein said. "We will move ahead with this plan for the next six months and we are committed to digitating it as closely as possible."
Under Rubenstein's guidance, Medical School faculty, staff and students have been developing a series of initiatives geared toward the Health System's academic and financial improvements. Additionally, they have been in the process of establishing a set of guidelines for Penn Medicine -- the Health System's governing body.
"Everybody was very positive and feels like they're going on the right track which is humbling given the current environment for academic medical centers," Reipe said.
Moreover, the trustees approved the final draft of the University's new strategic plan, which has been under discussion for the past semester.
Based around the 1995 Agenda for Excellence, this new series of initiatives focuses on the development of new research initiatives, recruiting a world-class faculty and expanding the Penn campus eastwards.
"In effect what we did was endorse the substance of the last version [of the plan], which was released to the University community during the spring," Reipe said.
Other resolutions voted upon on Friday included the appointment of Lori Doyle as Vice President for University Communications. Doyle has worked as Director of Communications since February, 2001.
In addition, the Board passed resolutions of appreciation of Executive Vice President John Fry and Vice President for Development Virginia Clark, both of whom will be vacating their posts at the University over the course of the summer.
"We will very much miss both of them," Reipe said. "They've made significant contributions to the University over an extended period of time."
Approximately 57 of the 80 trustees attended the meetings, which were held at the Union League in downtown Philadelphia.
The trustees meet in the winter, spring and fall of each year. Their next meeting is scheduled for the last weekend in October.
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