The Board of Trustees, Penn's top decision-making body, began their annual winter meetings yesterday by discussing the University's new strategic plan, the financial progress of the endowment and the health system and funding for campus renovation projects.
Approximately 60 of the 87 trustees, as well as the majority of high-level administrators, were in attendance at the meetings, which were held at the Inn at Penn.
The full Board of Trustees meets each fall, winter and summer for a series of committee meetings. Their next full set of meetings is scheduled for June.
Yesterday afternoon, University Treasurer Craig Carnaroli, the vice president for finance, announced Penn's latest endowment figures, which are favorable compared to its peer institutions.
At the halfway point of Fiscal Year 2002, the endowment has seen a 1 percent return on investments. Penn's return is relatively strong in comparison to the University's benchmark figure, which is down 1.8 percent.
Considering the endowment's 6 percent drop in the first quarter of FY 2002, Carnaroli had a positive outlook on the University's finances.
"The second quarter was up 7.2 percent, which is important because we were down in the first quarter because of Sept. 11," Carnaroli said.
Carnaroli did note, however, that recession has had an impact on the University, citing a number of areas where finances have declined.
"The executive education programs and the campus dining are down," Carnaroli said. "And benefit costs are increasing for both medical and prescription drugs."
Penn's endowment, which is heavily invested in value stocks, had performed poorly compared to other universities in FY 2000, when many peer institutions saw their more risky investments skyrocket. Penn actually lost 1.8 percent that year, but has been performing better in subsequent quarters.
The once-beleaguered Health System is also continuing to show signs of recovery since its lapse into debt a few years ago. Between FY 1998 and 1999, the Health System lost nearly $300 million.
However, over the past six months, it has maintained an $8.8 million operating income, which is $10 million better than the budget allocation.
"The Health System is on or exceeding all budget numbers," University President Judith Rodin said. "They're in a strategic planning mode, as well."
Earlier in the day at the trustees luncheon, Rodin, Provost Robert Barchi and Executive Vice President John Fry presented the trustees with a draft of the new strategic plan, a long-term set of goals aimed toward further improvement of Penn's academic environment, financial status and expansion toward Center City.
Rodin said she hopes the plan will be finalized by the end of the year, and that the University can begin to implement some of the measures laid out by the fall.
A series of smaller committee meetings were also held yesterday to provide updates on the University's facilities, academic policies and diversity initiatives.
During the budget and finance committee meeting, the trustees approved a list of six resolutions to allot funding to various campus renovations.
The trustees approved the design and construction of the College House Project, an overhaul of Hamilton Village that will focus on both internal and external improvements of the high rises.
The first phase of this project, which is scheduled to begin this summer, involves upgrading two of Hamilton College House's elevators, installing fire sprinklers in all student rooms and making repairs to the building's stone facade.
"This really was a breakthrough because we found a way to do it over the summer rather than taking any of the residences out of commission," Rodin said. "The proposal is really a good, low cost solution."
At the facilities and campus planning committee meeting earlier in the day, Graduate School of Fine Arts Dean Gary Hack presented a series of campus-wide design guidelines to be approved by the trustees.
Designed to establish consistency in architectural orientation and accessibility for buildings on campus, Hack emphasized the need to adopt a formal policy for the University's future construction projects.
"The proof of the pudding will be in the execution of these plans," Chairman of the Trustees James Riepe said in response to the plan.
The trustees will reconvene today to wrap up their agenda for the winter session.
