University of Pennsylvania Board of Trustees Winter Stated Meeting. Meeting of February 17, 2017 MINUTES

Transcription

1 University of Pennsylvania Board of Trustees Winter Stated Meeting Meeting of February 17, 2017 MINUTES The Winter Stated Meeting of the Trustees of the University of Pennsylvania was convened at 11:30 a.m. in the Woodlands Ballroom, Inn at Penn. Trustees present: Allan C. Bell, Scott L. Bok, Judith Bollinger, Susan W. Catherwood, David L. Cohen, James G. Dinan, Lee Spelman Doty, Connie K. Duckworth, David Ertel, Sarah W. Fuller, Perry Golkin, Joel M. Greenblatt, James H. Greene, Amy Gutmann, Janet F. Haas, Stephen J. Heyman, Osagie O. Imasogie, James C. Johnson, Robert S. Kapito, Susanna E. Lachs, Andrea Berry Laporte, Charles B. Leitner, Robert M. Levy, M. Claire Lomax, Patricia Martin, Andrea Mitchell, Kenneth D. Moelis, Ofer Nemirovsky, Dhananjay Pai, Simon D. Palley, Cheryl Peisach, Julie Beren Platt, Michael J. Price, Ramanan Raghavendran, Marc J. Rowan, Katherine Stein Sachs, Theodore E. Schlein, Julie Breier Seaman, Martin J. Silverstein, Krishna P. Singh, Robert M. Stavis, Richard W. Vague, Jill Weiss, Mark B. Werner, Paul Williams, and Mark O. Winkelman. Administrators and other guests present: DeShaun Bennett, Elise Betz, Glenn Bryan, Craig R. Carnaroli, Bonnie C. Gibson, Patrick Guinan, John J. Heuer, Charles Howard, J. Larry Jameson, Leslie Laird Kruhly, Mark Liberman, Stephen J. MacCarthy, Lisa McClatchy, MaryFrances McCourt, Michael McGarvey, Leslie Mellet, Marguerite Miller, Joann Mitchell, Medha Narvekar, Anne Papageorge, Greg Pellicano, Eric Pfeifer, Vincent Price, Reed Pyeritz, Peter Rockett, Gregory S. Rost, Maureen Rush, Gaurav Shukla, Lynne Sniffen, Duncan Van Dusen, Hoopes Wampler, Paul Welfer, Wendy White, Marie D. Witt, Alex Wong, Fan Yang, and John H. Zeller. The complete texts of all resolutions passed in the course of the meeting are appended to this document and are to be considered part of the official record of this meeting. Call to Order Chair David Cohen called the meeting to order. On behalf of President Amy Gutmann and Vice President and University Secretary Leslie Kruhly, Mr. Cohen expressed appreciation for the Trustees engagement and participation in these productive meetings, and noted particularly the program featuring Penn Life Sciences and Management at the Thursday luncheon, and the presentation about Penn Medicine s New Patient Pavilion during dinner that evening. University Chaplain Reverend Charles Howard provided the invocation. The minutes of the October 28, 2016 and December 8, 2016 meetings of the Trustees were approved as distributed. Nominating Committee Report The Chair then read from a Resolution of Appreciation for Andrea Mitchell, noting her incredible contributions to the University throughout the years, including service as Vice Chair of the Board

2 and Executive Committee, Chair of the Honorary Degrees and External Affairs Committees, her role as co-chair of the Making History Campaign, and how she continues to bring her passion for Penn to her role as chair of the Board of Overseers of the School of Arts and Sciences. Ms. Mitchell offered her thanks to Mr. Cohen and President Gutmann, and to the administration, saying that it has been her honor and privilege to be a Trustee. She recalled being witness to extraordinary changes over her two decades of service on behalf of the board, including the launch of engagement with the Penn Alexander School in West Philadelphia, and her participation with former Trustee Chairs Al Shoemaker and Jim Riepe on the search committee that brought President Gutmann to Penn. Ms. Mitchell spoke of her pride, and that of her husband, Alan Greenspan, in endowing two Penn Integrates Knowledge professorships and in Penn s place as a beacon of light throughout the world. In closing, she indicated her great anticipation in continuing to work for Penn as Chair of the Board of Overseers for the School of Arts and Sciences. Mr. Cohen then presented a resolution to re-elect James Dinan as a Term Trustee for a five-year period effective February 17, The following resolutions were approved (full resolution text is appended): Resolution of Appreciation for Andrea Mitchell and Designation as Emeritus Trustee... page 1 Action 2 Resolution to Re-elect James G. Dinan as Term Trustee... page 3 President s Report President Gutmann asked everyone to join in congratulating Reverend Howard on the publication of his new book, Pond River Ocean Rain. She encouraged everyone to obtain a copy and read this beautiful meditation in poetry and prose. She then announced that Vice President Joe Biden will soon join Penn as the Benjamin Franklin Presidential Practice Professor and will lead the new Penn Biden Center for Diplomacy and Global Engagement in Washington, D.C., to focus on international cooperation, foreign policy, and national security. President Gutmann added that having the benefit of his expertise, in partnership with the work of Perry World House and Penn Global, presented a signal moment in Penn s trajectory in diplomacy and global engagement. She noted Vice President Biden s close ties to Penn, the alma mater of his late son Beau, daughter Ashley, and granddaughter Naomi. President Gutmann also indicated that pioneering neuroscientist Jay Gottfried will be the eighteenth Penn Integrates Knowledge University Professor, joining the University as the Arthur H. Rubenstein University Professor with appointments in the Perelman School of Medicine and the School of Arts and Sciences. In addition, Penn s 2017 Commencement Speaker will be United States Senator Cory Booker, a national leader on issues such as criminal justice and immigration reform, support and resources for law enforcement, and economic opportunity for all Americans. President Gutmann 2

3 commended the Trustee Honorary Degrees Committee and Chair Andrea Mitchell for its excellent work in securing Senator Booker and a preeminent array of fellow honorary degree recipients. President Gutmann brought forward two resolutions for approval. She indicated that the Consultative Committee on Reappointment was enthusiastic and unanimous in its endorsement to reappoint Dr. Larry Jameson as Executive Vice President of the University of Pennsylvania for the Health System and as Dean of the Perelman School of Medicine through June 30, President Gutmann added her wholehearted recommendation of the same, noting Dean Jameson s expert guidance of the work of Penn s renowned Perelman School of Medicine and of the Health System. Referencing a resolution to appoint Greg Rost as Senior Vice President and Chief of Staff, President Gutmann spoke about his leadership and excellent counsel on the design and realization of many of the programs and initiatives of Penn Compact 2020, and his service in myriad vital roles at Penn, from crisis management to administrative and financial functions for the President s Office and the President s Center. She added that Mr. Rost was essential to Penn s continued growth and success, and to her own work as well. The following resolutions were approved (full resolution text is appended): Action 2 Resolution to Reappoint J. Larry Jameson as Executive Vice President of the University of Pennsylvania for the Health System and as Dean of the Perelman School of Medicine... page 4 Resolution to Appoint Gregory S. Rost as Senior Vice President and Chief of Staff... page 5 Academic Report Provost Vince Price shared an update on Penn s new hub devoted to teaching and learning, which is located on the first floor of Van Pelt-Dietrich Library and opened officially this month. Penn s Center for Teaching and Learning, the Online Learning Initiative, and the Center for Learning Analytics are all located in this new space. Provost Price added that bringing together the expertise found in these three resources provides even greater opportunities for effective collaboration, and also allows for close partnership with the Penn Libraries Office of Teaching, Research, and Learning Services, a key driver of educational technology and innovation across campus. The following resolution was approved (full resolution text is appended): Resolution on Faculty Appointments, Leaves and Promotions... Appendix Financial Report Executive Vice President Craig Carnaroli reported that as of December 31, 2016, total net assets were $15 billion, an increase of $590 million over the prior year, largely driven by strong investment performance and strong operating performance at the Health System. Net operating income was $138 million, $106 million lower than the prior year, but consistent with budget. Total revenue was $87 million above budget and expenses were $88 million above budget. 3

4 For the Academic Component, he noted that the net operating income reflected a decrease of $52 million, in comparison to an increase of $66 million for the prior year. This decrease was largely due to a change in accounting policy with respect to how Penn capitalizes library information. Total revenue was $41 million, 2.8% above prior year, and expenditures, when adjusted for the change in accounting policy, were up $73 million, or 5.1%. New contributions, to support operations as well as endowment and capital, were $192 million, an increase of $20 million, or 11.9% above prior year. Capital expenditures were $153 million, a decrease of $31 million over prior year. Mr. Carnaroli called attention to notable projects, including the New College House as well as renovations at Hill House and at Stemmler Hall of the Perelman School of Medicine. For the same period, Mr. Carnaroli reported that Health System net operating income was $199 million, $108 million above budget, though $17 million below prior year. Adjusted admissions totaled about 118,000, higher than budget and prior year by 3% and 10.7%, respectively. Inpatient admissions were consistent with budget, and results for outpatient activity and high intensity services were mixed. Capital expenditures totaled $253 million, a $39 million increase over the prior year. Mr. Carnaroli indicated that all results included new partners Lancaster General Health and Chester County. Penn Medicine Report Executive Vice President of Penn Medicine and Dean of the Perelman School of Medicine Larry Jameson expressed his gratitude on his reappointment. He reported on the Health System s community benefit to Philadelphia, providing direct charity care and subsidized care of $400 million per year. He added that the economic benefit to Philadelphia through jobs, services, and activities is nearly $5 billion, nearly $1 billion for the State of New Jersey, and nearly $7 billion for Pennsylvania. He noted expanding global activities as well as activities providing local community benefits, such as medical students preparing weekend backpacks of food for children to replace what is received through school on weekdays, and work to devise covers for hay holes, a frightening source of traumatic events within the Amish farming community. Academic Policy Chair Scott Bok indicated that the committee had met in joint session with the Ad Hoc Committee on Diversity to discuss progress on diversity and equity in the Penn faculty. He reported that Vice Provost for Faculty Anita Allen had made a presentation on achievements and challenges since the University first published its Action Plan for Faculty Diversity and Excellence in The Plan implemented a series of new initiatives, including school-based training of Diversity Search Advisors; enhanced support for mentoring, recruitment, and retention of diverse faculty; Presidential Professorships; support for diversity pipeline initiatives, and a pledge of $100 million to implement these initiatives. Mr. Bok noted that under the Plan, the University has seen greater hiring and promotion of women and minority faculty, more diverse academic leadership, and a narrowing of the gender pay gap, among other achievements. He added that the Plan s major initiatives will continue together with new programs designed to spark greater future progress in areas of continuing challenge, such as a more inclusive campus community and targeting solutions for dual-career couples. Mr. Bok indicated that committee discussion had focused on how the University can best recruit, retain, 4

5 mentor, and evaluate faculty; how diversity impacts students, and how diversity initiatives might change over the next decade. Audit & Compliance Trustee Perry Golkin indicated that the committee had received a report from Jamie Greene on the meeting of the Penn Medicine Audit and Compliance Committee meeting of February 8 th, and that Associate Vice President Greg Pellicano had provided updates on the activities of the Office of Audit, Compliance and Privacy, as well as the Independent Review of Internal Audit and Compliance. University Comptroller John Horn provided a six-month consolidated transaction review for both the University and Health System, and an update on the OMB A-133 Uniform Guidance Audit results and corrective action plans. Senior Vice President of Information Services Michael Restuccia and Health System Associate Chief Information Officer John Donohue provided a briefing on Penn Medicine IT Security. Mr. Golkin indicated that PricewaterhouseCoopers partners Jeff Williams and Kelly Thornton had presented the Fiscal Year 2017 Audit and Communications Plan and reviewed second quarter results. He indicated that the committee had reviewed and approved one resolution. The following resolution was approved (full resolution text is appended): Resolution on the Engagement of the Independent Accountant for Fiscal Year page 6 Budget & Finance Chair Bob Levy indicated that Vice President for Budget and Management Analysis Bonnie Gibson, Penn Medicine Senior Vice President and Chief Financial Officer Keith Kasper, and Vice President for Finance and Treasurer MaryFrances McCourt had reported on University and Health System s financial results as of December 31, The committee reviewed proposed FY18 total charges and Ms. Gibson presented recommendations for a 3.9% increase for undergraduate tuition and fees for the coming academic year, bringing average freshman tuition, fees, room and board to $68,600. He added that the undergraduate financial aid budget for Academic Year will be about $224 million. Mr. Levy noted that the committee had also received an excellent report on the School of Dental Medicine from Dean Denis Kinane, reflecting FY16 revenue totaling $95.7 million and projected five-year capital investments of about $39 million. He indicated that the committee had reviewed and approved five resolutions. The following resolutions were approved (full resolution text is appended): Action 2 Resolution to Authorize Tuition, Fees & Other Student Charges for Academic Year page 7 Resolution to Authorize Steinberg Hall Dietrich Hall First Floor Classroom Renovations in the Amount of $7,720, page 8 5

6 Action 3 Action 4 Action 5 Resolution to Authorize Van Pelt Dietrich Library HVAC Upgrades in the Amount of $18,000, page 9 Resolution to Authorize Evans Building Main Clinic Renovation and Schattner Center Addition in the Amount of $21,130, page 10 Resolution to Authorize Richards Building A&B Tower Renovations and Elevator Modernization in the Amount of $33,150, page 11 Development Penn Alumni President Lee Spelman Doty reported that Vice President for Development and Alumni Relations John Zeller had addressed the committee, opening discussion to evaluate and plan a possible University-wide, comprehensive campaign for Penn. She added that the committee looks forward to updating the Trustees as consideration and planning continues. Ms. Doty indicated that Nemirovsky Family Dean of the School of Engineering and Applied Science Vijay Kumar had provided the committee with insights on the school s academic programs, particularly as they relate to the University overall, and offered thoughts on the future of technology in industry and beyond. Ms. Doty also noted that this past year, 10,000 applicants had applied to Penn Engineering for a class of only 400. Facilities & Campus Planning Chair Jamie Greene reported that Dean Kinane had presented on the School of Dental Medicine s renovations at the historic Evans Building and construction of a two-story addition to the Schattner Center. The main clinic will feature 75 state of the art operatories to serve over 1,000 patient visits per day. The Schattner Center s 4,400 square foot addition will expand public atrium space for use by students and faculty, and provide a new waiting area for patients. The $21.1 million project will enable the school to provide improved patient care and premier instruction. Mr. Greene added that Julian Siggers, the Williams Director of the Penn Museum, had spoken on the vision for the multi-phased renovation of the Museum s Coxe and Harrison wings, to include in Phase 1 the renovation of Harrison Auditorium and the Kamin Entrance, new HVAC, ADA restrooms, and elevators. This $20.7 million project will provide 29,800 square feet of renovated space for use by students, researchers, visiting scholars, and the public. Local, National and Global Engagement Trustee Allan Bell indicated that Graduate School of Education Dean Pam Grossman had presented a report on how GSE is actively working with 247 schools in the Philadelphia School District, including providing student teachers, counseling interns, and research to support principals. Efforts include every K-8 school in West Philadelphia, where the school is engaged in an aggressive program to improve math outcomes. Daniel Hopkins, Associate Professor of Political Science in the School of Arts and Sciences reported on programs that are helping the Philadelphia City Government improve efficiency through behavioral insights and testing. 6

7 Mr. Bell added that Amy Gadsden, Executive Director of Global Initiatives, had reported both on the impact of the recent Presidential executive order on immigration as well as the success of Penn s many global programs. Over 5,000 Penn faculty and students travel overseas annually on Penn related programs, and there are nearly 7,000 international students and scholars on campus and 27,000 international alums residing in 136 countries outside the United States. Penn s global reach is significant, and University efforts to ensure safe passage during these challenging times are critical. Student Life Chair Claire Lomax noted that the committee had received an overview from President Gutmann and Provost Price about the University s work in response to the Presidential executive order and to mitigate its impact on the University s global mission. She indicated that members were pleased to learn of Penn s public advocacy on behalf of its students and scholars, and support for an understandably tense international student community. Ms. Lomax noted that the topic of discussion, Penn s First Generation, Low Income (FGLI) students, had drawn great interest. The committee discussed the impact that grant-based financial aid has had in making Penn an affordable reality for high need students and learned about integral admissions pipeline programs, such as the Penn-KIPP partnership, and on-campus support such as PENNCAP s Pre-Freshman Program as an assist in acclimation to college life. Ms. Lomax spoke about the FGLI Center s launch in December to provide a physical space. She indicated that students had met with the committee to offer their experiences and talk about shared concerns and their advice for new FGLI students entering Penn. She noted that the committee had greatly appreciated their honesty, adding that learning about challenges helps the University to further refine its work. Penn Alumni Report Penn Alumni President Julie Beren Platt welcomed the two new Alumni Trustees, Patricia Martín and Cheryl Peisach. She reported that Penn Alumni members had joined student leaders in the Penn Traditions program for an enjoyable no pressure networking event, and she invited everyone to join the event when it is repeated next year. Ms. Platt indicated that they had also discussed evolving collaboration between the offices of the Vice Provost of University Life and Development and Alumni Relations, which has resulted in effective initiatives such as Penn Spectrum Weekend. She noted that over the weekend, the Penn Alumni Volunteer Leadership Retreat would meet to learn about University priorities and to strategize with Alumni Relations on programming to engage the Penn alumni community. Penn Alumni, in partnership with the Office of the Provost, will also present the fourth annual Faculty Award of Merit to Peter Decherney, Professor of English and Cinema Studies. Ms. Platt called attention to upcoming events, including Alumni Weekend on May 12-15, Our Penn in Hong Kong on March 7, and Penn To You events in San Francisco and Boston in April 18 and May 24, respectively. Appointments to Penn Medicine, Overseer and Other Boards Mr. Cohen presented the final order of business. The following resolutions with appointments to Penn Medicine, Overseers, and Other Boards were approved (full resolution text is appended): Resolution to Appoint Anilesh Ahuja, Richard M. Horowitz, Henry D. Jackson, Sheryl D. Kaye, and Rich S. Ross to the Board of Overseers of the School of 7

8 Arts and Sciences and to Appoint Gary D. Rose and Paul Williams as Emeritus Members of the Board of Overseers of the School of Arts and Sciencespage 12 Action 2 Action 3 Action 4 Action 5 Action 6 Action 7 Action 8 Action 9 Resolution to Appoint Benjamin A. Breier and T. Gibbs Kane, Jr. to the Athletics Board of Overseers... page 14 Resolution to Appoint Dirk Brunner to the Board of Overseers of the School of Dental Medicine... page 15 Resolution to Appoint Patricia P. Udell to the Board of Overseers of the School of Design, to Appoint Keith L. Sachs as an Emeritus Member of the Board of Overseers of the School of Design, and to Re-Appoint Kevin S. Penn as Chair of the Board of Overseers of the School of Design... page 16 Resolution to Appoint Candice Wang Willoughby to the Board of Overseers of the University Libraries... page 17 Resolution to Appoint David J. Adelman and Melissa Neubauer Anderson to the Penn Medicine Board as Term Members... page 18 Resolution to Reappoint Members of the Penn Medicine Board as Term Members... page 19 Resolution to Appoint Mason Haupt and MaryFrances McCourt to the Board of PennPraxis... page 20 Resolution to Resolution to Appoint Jeremy Nowak and Ari M. Shalam to the Penn Institute for Urban Research Advisory Board... page 22 0 Resolution to Appoint Christopher B. Cowan to the Board of Overseers of the School of Veterinary Medicine... page 23 1 Resolution to Confirm the 2017 Slate of The Wistar Institute Board of Trustees... page 24 The meeting was adjourned at 12:11 p.m. Respectfully submitted, Leslie Laird Kruhly Vice President and University Secretary 8