Greeted with good news about Penn's endowment and the status of the Health System, members of the University Board of Trustees' budget and finance and executive committees gathered yesterday at the Inn at Penn.
The small group of trustees met with top University administrators to discuss, among other issues, Penn's performance in the 2001 fiscal year and the leadership changes made to the Health System.
According to the preliminary report, Penn's endowment increased 6 percent during the 2001 fiscal year, reaching $3.3 billion.
The benchmark endowment figure was down 7.4 percent over that same period.
Vice President for Finance and Treasurer Craig Carnaroli credited the growth to the fact that the University did not invest heavily in technology stocks, many of which plummeted last year on the stock market.
"While we didn't get the pickup when it was good, we didn't falter when it was down," Carnaroli said.
The University's total net assets grew 5 percent over the same time period, totalling $4.6 billion.
Additionally, the Health System experienced a positive operating income for the first time since 1997. The operating income experienced an $80 million improvement over last year's figures.
For some of the trustees, this was their first opportunity to meet newly appointed Executive Vice President Arthur Rubenstein, who began working at Penn this summer and now heads both the Health System and School of Medicine.
"Rubenstein is extremely qualified and is poised to help turn around the Health System, which has experienced financial difficulties of late," said James Riepe, chairman of the Board of Trustees.
"He recognizes that he is coming into a top flight institution that has gone through a difficult financial period."
In addition to approving Rubenstein's appointment, the executive committee approved the appointments of Vice President for Information Systems and Computing Robin Beck and Vice President and General Counsel Wendy White.
The budget and finance committee approved two resolutions and discussed the preliminary financial figures for the 2001 fiscal year. The Board of Trustees also passed resolutions of appreciation for former Vice President and General Counsel Peter Erichsen and former School of Social Work Dean Ira Schwartz.
University President Judith Rodin presented a report on the University's accomplishments this past summer, including the opening of the Penn-assisted public school and the appointment of new deans for the nursing and medical schools.
Provost Robert Barchi followed with a report on the University's academic progress this summer. Barchi cited the completion of the disabilities report, the completion of construction on the new Graduate School of Education building and the initiation of the Wharton West program as major achievements.
The full Board of Trustees is scheduled to convene at Penn in November.
Correction This article incorrectly stated that the Health System's operating income increased by $80 million last year. In fact, the Health System's operating cash flow increased by $80 million.
