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One of the nation’s most respected research universities, the University of Miami tackles today’s urgent challenges with an adventurous intellectual spirit—spawning creative collaborations that transcend traditional disciplines and inspiring students to pursue their passions in unique ways. Energy + Synergy offers highlights of an eventful year at the University, from the extraordinary care and support UM teams provided to thousands of Haitians after a devastating earthquake to sophisticated studies that are pushing the envelope on complex medical and environmental issues.
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2 0 1 0 P R E S I D E N T ’ S R E P O R T
In what sometimes seems like ten minutes rather than ten years, the 21st century
is more than a decade old. As it dawned, we were relieved that the Y2K issue had
turned out to be no big deal—but we had no clue what was in store. 9/11 had not
yet occurred, nor the wars in Iraq and Afghanistan. The Indian Ocean tsunami,
the election of President Barack Obama, and the worldwide economic crisis were
years in the future. Yet, in retrospect, it all raced by.
As the pace of events accelerates in our
globalized world, the problems they present
demand ever more agile responses and out-of-
the-box solutions—just what we excel in here
at the University of Miami. One of the nation’s most dynamic, diverse, and
respected research universities, we emphasize multidisciplinary collaborations
that transcend traditional academic boundaries. You might call it educational
entrepreneurship: Of all our specialized programs, perhaps our most distinctive
specialty is the unique way we put them together to address urgent issues.
Message from the President
U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T
2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3
2010 was not even two weeks old when UM’s can-do spirit,
collaborative orientation, and commitment to the community
were called into service by the crisis in Haiti. A Miller School of
Medicine team led by Barth Green, chair of neurological surgery,
arrived in Port-au-Prince to begin caring for survivors less
than 20 hours after the devastating January 12 earthquake. UM
Hospital in Haiti, a large, full-service field hospital, was erected
in just over a week. UM also coordinated the work of thousands
of volunteers and ultimately raised some $7 million to save lives
and rekindle hope in Haiti.
Joining the effort were nurses from the School of Nursing
and Health Studies and from UHealth and Jackson Health System;
Rosenstiel School of Marine and Atmospheric Science scientists
who contributed expertise in seismologic monitoring and fore-
casting; and UM architects and engineers who studied how
to help Haiti rebuild safely. Ultimately, virtually every school at
programs, Jackson has faced major financial challenges this year.
We are committed to its continued health and viability and are
working closely with Jackson leadership to identify and imple-
ment solutions.
The clinical programs offered by the Miller School of Medi-
cine and University of Miami Health System reflect our commit-
ment to leadership and excellence in health care as well as our
partnership with Jackson. For the seventh straight year, Bascom
Palmer Eye Institute has been named the top eye hospital in the
country in the U.S.News & World Report 2010-11 “Best Hospitals”
annual survey. Three specialties at the University of Miami/
Jackson Memorial Medical Center were also ranked among
the nation’s best: Neurology and Neurosurgery; Ear, Nose and
Throat; and Nephrology and Hypertension.
Harnessing innovative approaches to health and well-being
is the goal of the UM Life Science & Technology Park (LSTP).
Developed by Wexford Science & Technology, the LSTP is a
collaborative effort among the Miller School, the College of
the University made significant contributions to Haiti’s recovery
and long-term survival.
Coinciding with these varied humanitarian efforts, UM’s
hosting of the third annual Clinton Global Initiative University
(CGI U) this April was timely as well as exciting. More than 1,300
students representing every state in the U.S. and 83 countries, as
well as nearly 100 university presidents and 74 youth organiza-
tion leaders attended the event, which seeks to engage young
people in making commitments to address critical global issues.
Some 257 UM students were invited to participate, the largest
number from any host university in the event’s history.
Just two days after CGI U concluded, UM began responding
to another emergency, this one manmade: the disastrous oil spill
resulting from the April 20 explosion of the BP Deepwater Horizon
drilling platform in the Gulf of Mexico. Scientists at UM’s Center
for Southeastern Tropical Advanced Remote Sensing worked with
international satellite data providers to acquire critical images of
the spill. Rosenstiel School research teams prepared hydrody-
namic models to examine its implications and studied its impact
on marine life. And UM’s research catamaran, the F. G. Walton
Smith, hosted a two-week National Science Foundation-sponsored
cruise during which scientists sampled submerged plumes near
the well site.
Even when we’re not pitching in on high-profile emergen-
cies, UM gives back to our neighbors and our world in count-
less ways. Our students contribute more than 70,000 volunteer
hours to community projects each year. Our varied outreach
activities are showcased in a recently launched section of the
University’s website called ’Canes in the Community.
A community issue in which we are all stakeholders—health
care—was much in the public eye this year. Here at the University,
we have long been at the forefront of fresh thinking in health
care, combining evidence-based treatments with an emphasis
on wellness and prevention. For more than half a century, one of
our medical enterprise’s key partners has been Jackson Memorial
Hospital. Home to many of our premier clinical and educational
Within the College of Arts and Sciences, the clinical psychol-
ogy graduate program was ranked 25th out of 210 such programs
nationwide, and the Department of Psychology was ranked 60th
out of 241. Leonidas G. Bachas, a highly respected scientist with
a strong background in education and administration, assumed
leadership of the College of Arts and Sciences in July 2010. As
dean of the University’s largest college, he will continue its trajec-
tory of excellence while spearheading creative collaborations to
address global problems and prepare world-ready citizens.
The lingering economic downturn continues to pose fiscal
challenges. While our overall finances are stable, we are exer-
cising vigilance over our revenue and expenses to protect our
core mission, operations, and greatest resource—our people.
Tuition revenue has, in fact, grown modestly, despite the
smallest rate increase in recent history, and clinical revenues
at the Miller School are up double digits. I am pleased and proud
that we have managed our finances in ways that have allowed
us to continue to advance as an institution. I am also confident
that facing and meeting these economic challenges will ultimately
make us stronger.
Because they will strengthen us in the long term, we are
moving ahead with selected infrastructure projects. The newest
addition to the Gables campus—the 67,000-square-foot Robert
and Judi Prokop Newman Alumni Center, a spacious and inviting
new “home away from home” for the ’Canes community—opened
this fall. Improvements and expansions under way on the Gables
campus also include the Cox Science Building Interdisciplinary
Neuroscience and Health Annex, a state-of-the-art hub of
interdisciplinary research and biological imaging largely funded
by federal stimulus dollars, and an addition to the Patti and Allan
Herbert Wellness Center, which will help this popular resource
better meet the huge demand for its facilities. On the Rosenstiel
School campus, plans are moving forward on a major new
integrated seawater laboratory facility that will include the state-
of-the-art SUSTAIN laboratory—also funded by stimulus dollars—
for studying the effects of storms on built environments and a
Marine Life Science Center.
The steadfast loyalty and support of our friends during
difficult times is a source of deep gratitude. Our fundraising cash
total for the fiscal year was close to $160 million, up 4 percent
from last year. Among many examples of outstanding generosity,
the Goizueta Foundation donated $2.4 million to the University
of Miami to support a comprehensive University-wide plan that
will enhance and expand the reach of the Otto G. Richter
Library’s Cuban Heritage Collection.
The Barton G. Kids Hear Now Foundation announced a
$5 million gift to the Miller School of Medicine’s Ear Institute.
The Papanicolaou Corps, a loyal friend of our Sylvester Comp-
rehensive Cancer Center, recently announced a $3.2 million
gift to fund vital cancer research at Sylvester. And The Launch
Pad, our resource dedi-cated to fostering entrepreneurship
and innovation, garnered major gifts from both the Kaufmann
Foundation and the Blackstone Charitable Foundation. Overall,
new commitments of $100,000 and up reached nearly
4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 5
Engineering, and community and private partners. It will house
cutting-edge basic and translational research while nurturing ben-
eficial new technologies and processes. The park also represents
significant opportunities for the historic Overtown community in
which it is located. With its first phase slated for completion in
the summer of 2011, the new facility will be a beacon of scientific
innovation in South Florida and beyond.
UM’s scientific leadership was advanced this year by our
successful efforts to secure federal research funds made available
through the so-called “stimulus package”—the American Recov-
ery and Reinvestment Act (ARRA). Thanks in great part to the
outstanding efforts of UM’s Office of Research, our investigators
have received more than $90 million in stimulus funds, placing us
14th in the nation among private research universities and 38th
among all research universities. The funds contributed to a grand
total of some $330 million received for 2,700 externally spon-
sored research studies, led by 850 principal investigators at UM.
Our distinguished scholars and educators, array of educa-
tional offerings, leading-edge research, and ever more accom-
plished and successful student body have all contributed to the
University’s continued rise in a variety of prestigious rankings.
In the 2011 edition of U.S.News & World Report’s “America’s Best
Colleges” rankings, the University ascended to 47th place, con-
tinuing a meteoric rise that has seen UM climb 20 spots in nine
years and become the highest-ranked Florida school on the list.
The publication also ranked UM 48th in its “Great Schools, Great
Prices” category.
In the 2011 edition of “America’s Best Graduate Schools”
published by U.S.News & World Report, the Miller School of
Medicine moved up four slots to the 47th position. The school’s
physical therapy program, consistently named among the nation’s
top ten, was rated seventh. The School of Law is now ranked 60th
out of 188 schools; its tax law program, ranked in fifth place this
year, consistently ranks among the top ten. Further laurels
came from Parade magazine, which recently included UM in its
“College A-List” of outstanding schools.
$138 million, up more than 56 percent from last year.
Our steady stewardship of philanthropic funds is widely
recognized. In spring 2010, we were ranked number one in fund-
raising efficiency and fiscal excellence among more than 5,500 of
America’s largest charities by Charity Navigator. UM has earned
the organization’s prestigious 4-star ranking ten years in a row.
I am certain that few academic institutions could have
responded to this year’s events with anything like UM’s energy
and ingenuity. Perhaps the real take-home message here is that
learning and achievement come in an endless variety of forms, as
does the chance to make a positive difference in our world. As the
future we all share unfolds ever more swiftly, our University will
continue to meet its challenges and maximize its opportunities in
often surprising, consistently inspired, and endlessly inspiring ways.
Donna E. Shalala
President
H E L P I N G S I L V E R U S E S I L I C O N
and Technology Enhancement
(CREATE), an NIH-funded multi-site
center coordinated at the University
of Miami. CREATE seeks to improve
the interface between elders and
information technology so that they
can increase their access to services,
maintain closer touch with family
and friends, and stay independent
longer. As principal investigator of
CREATE, Czaja recently received
renewed funding of $9 million over
five years from the National Institute
on Aging.
“Our research focuses on tasks
and technologies that people use
S U P E R C H A R G I N G S C I E N T I F I C I N Q U I R I E S
Capable of performing trillions of
calculations per second, power-
ful computers are allowing teams
of University of Miami scientists to
perform the next-generation genome
sequencing that will identify disease
genes and unravel the mysteries
behind illnesses such as diabetes,
cancer, and Alzheimer’s.
“We now have the compu-
tational resources that make it
possible,” says Nick Tsinoremas,
director of UM’s Center for Computa-
tional Science (CCS), which harnesses
computer power, applied math-
ematics, and application sciences to
address some of the world’s most
difficult challenges, from improv-
ing human health and monitoring
climate change to finding alternative
energy sources. In less than four
years, CCS has established more than
100 active collaborations, working
with researchers University-wide in
biology, chemistry, earth sciences,
engineering, medicine, physics, and
other disciplines.
One of the biggest and most
important CCS collaborations is with
scientists from UM’s John P. Hussman
Institute for Human Genomics. The
center’s 6,000 central processing
units, or CPUs, contain the necessary
computing power to analyze massive
on a daily basis, such as health care
websites, telehealth technologies, or
the Internet for activities like bank-
ing, shopping, or finding information
about community resources,” Czaja
explains. She and other UM research-
ers then develop interventions and
educational programs that can help
seniors use these technologies.
Clearly there’s a need for such
efforts. A study by Czaja and col-
league Joseph Sharit, a professor
of industrial engineering, found
that elderly people who used Medi-
care’s website found it “confusing
and overly complex.” She hopes to
convince Medicare to make the site
easier for older individuals to use.
As the study concluded, “To ensure
that electronic health tools reach
their full potential, broad and inclu-
sive input from consumers should
serve as the basis for design.”
amounts of genomic data, helping
Hussman Institute researchers unlock
the mysteries of human disease.
The CCS played a critical role in
helping to mitigate the catastrophic
Gulf oil spill, providing computational
resources to UM’s Rosenstiel School
of Marine and Atmospheric Science,
whose researchers conducted
As director and principal investiga-
tor of the Center on Research and
Education for Aging and Technology
Enhancement (CREATE), Sara Czaja
leads efforts to improve the interface
between elders and information tech-
nology to promote independence and
quality of life among older people.
These images from a Rosenstiel School
simulation of the Gulf oil spill, created
with a Center for Computational Science
supercomputer, show a buoyant plume
of crude oil and natural gas interacting
with surface currents.
Research focusing on how information technology can be adapted to meet seniors’
needs includes a study evaluating the usability of the Medicare website.
Information and communication
technologies such as the Internet,
e-mail, and mobile phones are not
just the domain of the young. Accord-
ing to Sara Czaja, a UM professor
with joint appointments in the Miller
School of Medicine’s Department of
Psychiatry and Behavioral Sciences
and the College of Engineering,
“Seniors are anxious to participate in
the technology explosion. But they’re
looking for specific things that are
not too complicated in design.’’
Czaja is director and principal
investigator of the Center on
Research and Education for Aging
The use of powerful supercomputers to protect both
human health and the natural environment, ingenious
strategies to treat diabetes, new ways to help the
elderly cope with an increasingly high-tech society:
UM investigators are partnering across disciplines
to address some of the world’s toughest challenges.
6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 7
I N T E R D I S C I P L I N A R Y A D V O C A T E
Although he’s just entered medical school, Kartik Telukuntla has already racked up an impres-
sive record of public service. In high school he organized efforts to provide personal items and
other supplies needed by U.S. soldiers in Afghanistan and assist victims of the Indian Ocean
tsunami and Hurricane Katrina. As a sophomore at UM, he co-chaired the University’s inau-
gural Miami Poverty Conference. A week before the event, he presented a plan to coordinate
homeless-shelter volunteer efforts by UM students at the second Clinton Global Initiative Uni-
versity (CGI U). He served as a project leader at the third CGI U, held at UM last April.
Last fall, Telukuntla was a finalist for a prestigious Rhodes Scholarship. “It was an honor
to be part of such an accomplished group of students,” he says. “It forced me to think more
about what I want to accomplish.”
As an undergraduate, Telukuntla delved into political science courses and served as chief
justice of the Student Government Association and president of the Honor Council. A member
of the President’s 100, Iron Arrow, and Phi Beta Kappa, he completed the Medical Scholars
program with honors.
Now studying at the Miller School of Medicine, Telukuntla plans to focus on health policy
issues. “I see political science as an avenue to apply medical science on a larger scale,” he says.
“The best way to tackle a problem is to inspire more people to join you.”
C A M O U F L A G I N G A C U R E
Improving outcomes for diabetic
patients who receive islet cell trans-
plants to achieve insulin indepen-
dence is the goal of biomedical
engineer Cherie Stabler’s research.
The cells, which are harvested from
the pancreas of a donor and trans-
planted into a patient with diabetes,
come under attack from the recipi-
ent’s immune system, necessitating
the need to give patients powerful
immunosuppressant drugs that leave
them open to infections.
Stabler’s strategy for overcom-
ing this is to coat the transplanted
islet cells with biomaterials, cam-
ouflaging them from the body’s im-
mune system. Now, she is augment-
ing her method with a new strategy:
creating biomaterial scaffolds that
will house islets in three-dimensional
space, ensuring that they get the
nutrients they need to survive.
“I like to say that islet cells are
like super-athletes,” says Stabler, an
assistant professor of biomedical en-
gineering and director of the tissue
engineering program at the Diabetes
Research Institute. “They have a high
nutrient demand.”
When transplanted just under
the skin, the cells tend to cluster,
competing with each other for nour-
ishment. “The islets on the outside
get all the nutrients, and those on
the inside begin to die,” Stabler
explains. So the scaffolds she and her
team are developing will distribute
the islets more evenly, providing
mechanical protection in a nutrient-
rich environment. The scaffolds that
house the islets look and act a lot
like kitchen sponges, absorbing the
right amount of fluids, or nutrients,
while maintaining their stability.
Stabler also has taken her scaf-
folding strategy even further, working
computer simulations and hydrody-
namic modeling to determine the
path and potential impact of the oil.
The NIH-funded bioassay ontol-
ogy project of Miller School of Medi-
cine’s researchers Vance Lemmon and
Stephan Schuerer is moving forward
with computational support from
CCS. The project seeks to describe
the hundreds of different assays used
to study how perturbing agents such
as drugs alter cell function, enabling
scientists to more effectively identify
and prioritize chemicals for further
development into chemical probes
or starting points for therapeutics.
Other CCS collaborations
include continued computational
support for the climate change
research of Ben Kirtman, a
professor of meteorology
and physical oceanography
who directs the center’s
program in physical sci-
ences and engineering;
the Translational Research
Information Exchange, a
collaborative project with
the Miller School; and ongo-
ing work with the Rosenstiel
School’s Cooperative Institute for
Marine and Atmospheric Studies
to define cyber-infrastructure for
all of its projects.
Miller School of Medicine professor
Vance Lemmon is involved in studies
that include a Miami Project to Cure
Paralysis-funded search for genes that
can help neurons regenerate and a bio-
assay ontology project that examines
how agents such as drugs alter cell
function. Technical support from the
Center for Computational Science, he
says, allows his teams to do work of
“unprecedented sophistication.”
In pursuit of biomaterials that will
protect transplanted islet cells from
immune system rejection while allow-
ing them vital nourishment, biomedi-
cal engineer Cherie Stabler takes a
multidisciplinary approach. “When
you start putting all these minds
together,” she says, “is when you
come up with something novel.”
with researcher Norma Sue Kenyon,
the Martin Kleiman Professor of Sur-
gery, Medicine, Microbiology and Im-
munology, and Biomedical Engineering
and co-director of the DRI’s Executive
Research Council, to grow mesenchy-
mal stem cells on the surface of the
biomaterial that coats the islets.
“Mesenchymal stem cells seem
to be able to modulate the immune
system in a good way,” Stabler ex-
plains. “We’ve found that these cells
grow very well on our biomaterial
scaffolding, creating a three-dimen-
sional protective ‘bubble’ that may
help minimize immune rejection of
the islets.”
Stabler notes that, through
her collaboration with Kenyon, she
and her team have been able to get
diabetic animals off insulin using this
technique: “Our ultimate goal is to
move this technology to clinical trials.”
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P R O P E L L I N G P R O T E O M I C S
With a $2.6 million NIH stimulus
grant, Akira Chiba hopes to begin
doing for proteomics—the study
of proteins—what sequencing the
human genome did for genomics.
Chiba, a professor in the Department
of Biology, and his colleagues have
designed a powerful new tool to help
make it possible: a photon-based
fluorescence microscope designed
specifically to visualize the interac-
tions of living proteins.
The highly specialized new
equipment makes it possible to view
such interactions within the cells of
living animals much faster and in
far greater detail than ever
before. The advance opens the door
to the new science of ‘isPIN’ (in situ
studies of protein-protein interac-
tion networks). Chiba and his team
have shown that the approach works;
the two-year NIH award will support
work to demonstrate the technique’s
expandability.
Chiba’s lab is currently creat-
ing the first map of protein-protein
interaction networks in the brain;
UM’s Center for Computational Sci-
ence is set to provide memory space
and assist in data analysis. The isPIN
project, says Chiba, is “sure to shed
new light on the dynamics of the
molecules of life.”
E N H A N C I N G A I D S P R E V E N T I O N
After someone tests positive for HIV,
counseling is typically offered as
both a first step to initiate medical
care and as a strategy to reduce the
patient’s risky behavior. But whether
counseling can help those who test
negative for the virus remains an
open question.
Lisa Metsch, a Miller School of
Medicine professor of epidemiol-
ogy and public health who studies
HIV prevention, has embarked on a
two-year stimulus-backed study to
find the answer. Her $12.3 million
grant, shared with the San Francisco
Department of Health, is examining
the effectiveness of HIV prevention
counseling at nine clinics around
the country.
“We need to recognize that
most people will not have an HIV-
positive test,” says Metsch. “For the
people who get a negative test, is
there value in also doing counseling?
That’s why this study is needed.”
Akira Chiba, a professor
of development and neurosci-
ence, uses a sophisticated
photon-based microscope to study
proteins as they bind and signal to
each other within the intact brains of
fruit flies. He and his colleagues hope
to create a map of protein interactions
that could guide the way to as-yet-
unimagined medical interventions.
C O N T R O L L I N G G L O B A L W A R M I N G
Trapping harmful gases in a bottle,
then putting it away so they won’t
poison the air, might sound like a
simplistic approach to fighting pol-
lution. But that’s exactly the premise
behind carbon sequestration—a
means of capturing carbon dioxide
from sources such as fossil fuel
power plants, converting it to a
liquid, and storing it underground.
The gas is thus, in theory, kept out
of the atmosphere so that it won’t
contribute to global warming.
“We’re not really sure exactly
what happens to carbon dioxide when
it gets pumped in the ground,” says
Peter Swart, professor and chair of
marine geology and geophysics at
the Rosenstiel School of Marine and
Atmospheric Science. The U.S. govern-
ment has given Swart and his colleagues
$2 million—including $300,000 in
stimulus funding—to find out.
Swart is training a group of
doctoral students to determine
whether carbon dioxide is leaking
from the ground or staying put at
Department of Energy sites around
the country. His project teammates
include fellow Rosenstiel School
scientists Tim Dixon, Falk Amelung,
Guoqing Lin, and Dan Riemer.
A study integrating so many
different technologies, from seismom-
eters to synthetic aperture radar, to
gauge the effectiveness of carbon
capture has never been done before:
“This is new territory,” Swart says.
Rosenstiel School professor Peter Swart and graduate student Ben Galfond, B.S. ’09,
test a device used for monitoring carbon dioxide levels above underground
storage sites. This scanning electron microgram
shows the beginning of a synapse in
a fruit fly. A human brain is believed
to have more than a trillion synapses,
dynamically created and eliminated
throughout life.
Garnering nearly $93 million in federal “stimulus”
funds granted via the American Recovery and
Reinvestment Act (ARRA), University of Miami
investigators have embarked on more than 100
research projects. Like the examples profiled here,
many seek solutions to some of the world’s most
urgent medical and environmental issues.
1 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 1
A F I N E - T U N E D P L A N
“Music has always been part of my life,” says brass player Katie Silliman, who has performed
in school bands since sixth grade. “I wasn’t ready to be done with it.” As a UM freshman last
year, she was accepted as a tuba player in the Frost School of Music’s Symphonic Winds and a
bass trombonist in one of its three jazz bands.
While making music floats her boat, the New York-born Texas transplant also has known
since age 9 that she’s destined to be a marine scientist—which is why she’s juggling majors in
biology, marine science, and music.
One of 30 students nationwide awarded a prestigious Singer Scholarship by UM in 2009,
Silliman is in her second year as lab assistant to Carla Hurt, a research assistant professor
in the College of Arts and Sciences who is conducting genetic studies of anemone shrimp.
Extracting and sequencing the DNA of the marine invertebrates is, Silliman admits, “smelly,”
but helps answer questions about how ecological changes affect biodiversity. Not only will
she receive credit in an upcoming scientific publication of Hurt’s, Silliman says her mentor has
encouraged her to start her own research project.
Active in tae kwon do, scuba club, and the marine studies honor society Rho Rho Rho,
Silliman also works as a dorm security assistant to raise funds for study abroad on Australia’s
Great Barrier Reef. UM, she says, is a great location “for hands-on work in marine science” and
“to make friends from around the country and the world.”
I M A G I N G T H E N E R V O U S S Y S T E MM E N D I N G B O D Y T I S S U E S
University of Miami biomedical
engineer Weiyong Gu is working
long hours in his lab to build an
instrument that could help pave the
way for advanced techniques in the
engineering of human tissue.
The bioreactor on which Gu
and colleague Charles Huang, an
assistant professor of biomedical
engineering, are working could make
it possible to monitor the electrical,
chemical, and mechanical charac-
teristics of engineered tissue and
predict its growth and other traits
without having to remove it from the
device—something that can’t be done
with current bioreactors.
The two College of Engineer-
ing researchers, their work funded
by an ARRA grant of $735,000 from
the National Institute of Biomedical
Imaging and Bioengineering, hope to
have a prototype of the instrument
ready and tested within two years.
“Imagine using engineered tissue
to replace diseased or damaged or-
gans,” Gu says. “That’s the potential
of this work.”
S U S T A I N I N G L I F E A N D P R O P E R T Y
Hurricanes are the costliest natu-
ral disasters that strike the United
States—and as more and more
Americans gravitate toward the
coasts, their negative impacts will
only rise. A $15 million ARRA grant
from the National Institute of Stan-
dards and Technology (NIST) of the
U.S. Department of Commerce sup-
ports construction of the Rosenstiel
School’s 8,520-square-foot, state-of-
the-art Surge-Structure-Atmosphere
Interaction (SUSTAIN) laboratory.
The only facility in the world
with a wind-wave-storm surge simu-
lator that can generate hurricane-
force winds in a 3-D test environment,
SUSTAIN will offer the capability to
model entire segments of coastal
communities, so engineers can study
changes in the way buildings are
designed and constructed.
Slated to be completed in 2012,
SUSTAIN is part of an integrated
seawater laboratory building that will
house a state-of-the-art Marine Life
Science Center. The center, which will
focus on coral reef research, will also
be home to fisheries and biologi-
cal oceanography research, as well
as collaborative studies probing the
complex connections between the
oceans and human health.
Says SUSTAIN principal investiga-
tor Brian Haus, associate professor of
applied marine physics and director
of UM’s Air-Sea Interaction Saltwater
Facility, “This building will help us
better understand and protect our
coastal communities and ecosystems.”
$14.8 million in ARRA funds, is de-
signed to build on these advances.
Within this state-of-the-art,
37,700-square-foot addition to the
Cox Science Center, scientists from
the College of Arts and Sciences and
Miller School of Medicine will con-
duct interdisciplinary studies based
on neurological imaging and health
research, accelerating the pace of
discovery in neurological processes
and related diseases.
The wind-wave-storm surge stimula-
tor, a component of the Rosenstiel
School’s new SUSTAIN facility, gener-
ates hurricane-force winds in a 3-D
test environment.
The Rosenstiel School’s Brian Haus,
principal investigator of the SUSTAIN
laboratory initiative, notes that
“developing a more complete under-
standing of our environment and its
weather, as well as their effects on
structures, ecosystems, and human
health, is essential.”
Featuring revolutionary technologies allowing scientists to connect nerve cell
activity with human behavior in real time, the Neuroscience and Health Annex at
the Cox Science Center will accelerate the pace of discovery in neurological
processes and related diseases.
1 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 3
One of the challenges to understand-
ing human emotions, cognition, and
neurological disorders is linking
changes in brain cell function to
changes in subjective experiences
and observable behaviors. The ability
to track nerve cell activity and make
real-time connections to human
behavior is revolutionizing the
way scientists and physicians study
the brain. UM’s new Neuroscience
and Health Annex, which received
D I S C I P L I N E D D E V E L O P M E N T
Real estate is big business in South
Florida, so it make sense that the
University of Miami lead the way in
preparing students for success in
this dynamic industry. The School
of Architecture is doing its part by
launching an interdisciplinary Master
of Real Estate Development and
Urbanism (MRED+U) program.
The MRED+U combines its
world-class curriculum and expertise
in livable community planning with
strengths of real estate programs in
the School of Business Administra-
tion and School of Law. As cities are
increasingly taxed by traffic, water
scarcity, rising energy prices, and a
paralyzing credit crisis, this multidis-
ciplinary program provides a holistic
approach to modern challenges.
Students learn cutting-edge
practices in real estate finance,
market analysis, real estate law,
land use policies, project manage-
ment, public-private partnerships,
the development process, sustain-
able development practices, and
entrepreneurship. Graduate students
and faculty in real estate, business,
law, architecture, and urban design
collaborate on case studies, team
projects, competitions, and capstone
charrettes—combined development
and community design studios.
These charrettes challenge students
to balance the desires of the market,
residents, government leaders,
community stakeholders, and
financial interests while devising
a development plan.
Students in the MRED+U
program bring diverse academic
backgrounds and work experience,
enriching the interdisciplinary learn-
P U R S U I N G C A N C E R ’ S S E C R E T S
ogy at the Miller School of Medicine.
Burnstein oversees a curriculum that
strives to integrate students into the
extensive clinical and translational
research programs of the Sylvester
Comprehensive Cancer Center while
reinforcing the interrelationships
of basic biological discoveries and
clinical applications.
“The program’s two-tiered
mentoring system provides graduate
students with unique and valuable
training,” says Burnstein. “This dual
mentoring has the added benefit of
increasing interactions among
faculty scientists and clinicians,
which is a strong impetus
for University-wide transla-
tional research efforts.”
Cancer remains a highly complex,
elusive disease that demands the
most novel diagnostic and treatment
approaches. The Sylvester Compre-
hensive Cancer Center’s Sheila and
David Fuente Graduate Program
in Cancer Biology teaches the next
generation of cancer researchers to
integrate the most advanced con-
cepts and techniques in molecular
and cell biology, biochemistry, genet-
ics, genomics, proteomics, animal
models, and biostatistics in the quest
for more accurate diagnostic strate-
gies and improved therapeutics.
This innovative doctoral train-
ing program enables students to
interface with basic scientists, clinical
cancer researchers, and physicians
throughout the University as they
design and conduct multidisciplinary
research projects. Students select
both a research mentor to guide
them in basic science and trans-
lational investigation as well as a
physician mentor who exposes them
to the challenges of clinical cancer
care and unmet research needs.
The program is directed by
Kerry Burnstein, a professor of
molecular and cellular pharmacol-
ing environment. The program has
drawn applications from throughout
the United States (including Hawaii),
South America, and the Caribbean
as well as India, Saudi Arabia, South
Korea, and China.
Such widespread interest is
natural, says MRED+U program
director Charles Bohl, considering
the dramatic social, economic, and
demographic trends that are shifting
the industry toward a new paradigm
combining livable community design
and sustainable urban development.
The MRED+U program, he notes, “is
perfectly poised to prepare the next
generation of entrepreneurs to make
those communities a reality.”
Kerry Burnstein, a professor
of molecular and cellular phar-
macology, leads the Sheila and
David Fuente Graduate Program in
Cancer Biology at Sylvester Compre-
hensive Cancer Center. The program
enables doctoral students to interface
with scientists, researchers, and physi-
cians in multidisciplinary projects that
span basic and translational research.
The School of Architecture’s MRED+U
Program, led by professor Charles
Bohl, provides students with a
multidisciplinary perspective on
developing the built environment
to optimize both economic outcomes
and human well-being.
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Contemporary issues don’t fit neatly into academic
disciplines; neither do effective solutions. UM is
responding with a growing array of multidisciplinary
programs that prepare students for real-world
leadership in fields ranging from the built
environment to cancer biology.
E N T E R T A I N I N G A M B I T I O N S
Staying afloat in today’s music busi-
ness requires finding creative ways to
ride the digital wave that ushered in
the age of online downloading. The
Frost School of Music’s Music Business
and Entertainment Industries (MBEI)
program, led by associate professor
Rey Sanchez, B.M. ’80, M.M. ’82, is one
of the few programs designed specifi-
cally to prepare students for the pub-
lishing, protection, and administration
of intellectual property in this rapidly
changing industry.
This year the MBEI program
teamed with the UM School of Law
to design the first-ever joint-degree
program in law and music business,
a unique opportunity for aspiring en-
tertainment attorneys. The J.D./M.M.
in Music Business and Entertainment
Industries welcomed its first students
in fall 2010, offering them the ability
to complete both degrees in three
years, including two summers of
coursework. Graduates are prepared
to offer legal services in arts and
entertainment, as well as in more
general fields such as antitrust, busi-
ness associations, commercial law,
intellectual property, tax, and torts.
The program was spearheaded
by Serona Elton, M.M. ’95, who as a
student cofounded ’Cane Records,
one of the first self-sustaining col-
lege record companies. Elton went
on to earn a J.D. from Brooklyn Law
School and served as vice president
of mechanical licensing and reper-
toire data services at EMI Recorded
Music before returning to UM as a
faculty member. She is a consultant
for Sony Music Entertainment and
several other music industry clients,
a specialization that enables her to
provide conceptual and practical
insight to the program.
“If you’re going to be work-
ing with contractual arrangements,
Serona Elton directs the J.D./M.M. in
Music Business and Entertainment
Industries, the nation’s first-ever joint-
degree program in law and music busi-
ness. “So much of the music industry
is based on contractual relationships,”
she says. “Understanding those
nuances is key to negotiating and
crafting deals.”
either negotiating them or draft-
ing them, being a lawyer helps you
understand the nuances and legal
ramifications of particular contract
language,” Elton says. “Our gradu-
ates will be well prepared to enter
this rapidly changing field.”
Associate professor Rey Sanchez, chair
of the Department of Music Media and
Industry at the Frost School, helped
develop the J.D./M.M. curriculum.
‘ C L A S ’ A C T
Home to both undergraduate and
master’s degree programs in Latin
American Studies, the Center for
Latin American Studies (CLAS) also
offers an innovative dual B.A./M.A.
honors degree. Just as crucial as
its degree programs are varied
interdisciplinary activities that link
faculty in the College of Arts and
Sciences with those from schools
including Architecture, Communica-
tion, and Marine and Atmospheric
Science. Also in the mix are visitors
from Latin America and other parts
of the world who participate in guest
lectures, workshops, visiting scholar-
ships, and studies. In August 2010,
noted scholar Ariel C. Armony took
over leadership of the center from
longtime director Steven Stein.
Last spring the center’s lively
calendar of events included a confer-
ence uniting living playwrights from
1960s Cuba, which was video-
streamed live; a screening of Which
Way Home, a documentary about
unaccompanied immigrant children
in South Florida; presentations on
spiritual tourism in Peru and the
Argentine wine industry; and discus-
sions of social issues and logisti-
cal challenges in post-earthquake
Haiti. Through the center’s summer
grant program, graduate students
conduct on-site research into topics
of interest ranging from 19th-century
Afro-Cuban politics to the evolution
of Colombian saxophone music.
More ambitious initiatives are
in the works with the creation of the
Miami Consortium for Latin Ameri-
can and Caribbean Studies. The new
collaboration between CLAS and the
Latin American and Caribbean Center
(LACC) at Florida International Uni-
versity has been designated a Title VI
National Resource Center (NRC) for
Latin America by the U.S. Depart-
ment of Education.
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“Protagonistas de los 60,” a March
2010 conference cohosted by the
Center for Latin American Studies
and FIU’s Cuban Research Institute,
brought together noted Cuban play-
wrights for the first time in more than
40 years to explore a unique decade
in Cuban theater.
E C L E C T I C A C H I E V E M E N T S
Orlando native Michael Kaplan was originally drawn to UM by the diverse learning opportuni-
ties offered through the University’s prestigious Foote Fellows Program. Soon busy with activi-
ties ranging from Model UN to running the scoreboard at volleyball games, he found himself
especially intrigued by a freshman seminar known as Books That Matter. Designed for the
Foote Fellows by William Scott Green, senior vice provost and dean of undergraduate educa-
tion, and John Paul Russo, professor of English and classics, the course invites faculty mem-
bers to discuss a nonfiction work of personal significance.
The seminar’s heady intellectual brew inspired Kaplan to take its concept campus-wide in
spring 2009. The resulting program, ULecture, has chalked up more than 25 faculty presenta-
tions to date, including one on health care last February with President Donna E. Shalala.
Kaplan, who is balancing a double major in history and political science with a triple
minor in theater, sport administration, and business law, has served (among other things) as
the 2009-10 Student Government Senator of the Year, a College of Arts and Sciences senator,
and chair of the UM Student Government Academic Affairs Committee. He also leads campus
tours for prospective students, performs with UM’s Just Kidding improv comedy troupe, and
participates on the Model UN traveling team.
“I came to UM because I wanted the freedom to choose,” he recalls. “The University said I
could take my education and make it my own. And I knew it was the right decision.”
M E D I C A L M I R A C L E S
The first wave of doctors landed at
Port-au-Prince’s ruined airport the
day after the earthquake with garbage
bags full of sutures, antibiotics, and
wound dressings—whatever they could
grab before their flight. Nothing could
prepare them for the chaos and heart-
break they encountered.
As co-founder of the humanitar-
ian effort Project Medishare, Barth
Green, professor and chair of the
Miller School of Medicine’s Depart-
ment of Neurological Surgery, had
been helping to bring health care to
the people of Haiti since 1994. He
and his colleagues, including several
members of the UM Global Institute
for Community Health and Develop-
ment, were quickly at the forefront
of the global medical response to the
ravaged country, treating thousands of
severely injured survivors.
The Miller School’s multifaceted
efforts on behalf of Haiti also ranged
from the nearly instant creation of
a Miami-based command center
that moved mountains to transport
people and equipment to a nation in
complete meltdown to a ham radio
station that made it possible to relay
lifesaving information about supplies
and patients when more modern
communications media were no
longer functioning.
With extraordinary logistical
assistance from prominent com-
The Miller School’s Barth Green, a
leader of efforts to improve health
care in Haiti for more than 16 years,
was in Haiti the day after the Janu-
ary 12 earthquake, spearheading the
coordination and delivery of urgently
needed medical services for thousands
of grievously wounded survivors.
munity members who included
longtime Miller School supporters
and University trustees, as well as
generous philanthropic support that
reached nearly $7 million, the school
also spearheaded an astounding
feat, building a well-equipped,
air-conditioned, 240-bed hospital
housed in four tents in just over a
week after the quake. Some 1,500
medical personnel from the UM
community and beyond—nearly every
U.S. state and several countries—
ultimately volunteered for shifts at
the hospital. Plans are under way to
transform Haiti’s health care system
and to create a national trauma sys-
tem, made possible in large part by
the efforts of Project Medishare and
the UM Global Institute.
Miller School of Medicine teams built
the well-equipped, 25,000-square-
foot, 240-bed University of Miami
Hospital in Haiti in just over a week.
UM law students, joined by students
from leading law schools around the
U.S., helped Haitians living in South
Florida to file for Temporary Protected
Status in an effort that garnered
national recognition.
L E G A L L I F E L I N E
Just ten days after the devastating
earthquake in Haiti, UM law students
were helping Haitians living in
South Florida to file for Temporary
Protected Status (TPS), which allows
them to live and work legally in the
U.S. In March, 52 law students from
eight universities across the nation,
including Yale and Stanford, came to
Miami for alternative spring breaks
to pitch in.
“I see this as an opportunity to
make sure people don’t become mar-
ginalized,” says Nneka Utti, 23, who
participated in the TPS effort.
TPS gives foreign nationals who
can’t safely return to their home-
lands because of armed conflict,
natural disaster, or other life-
threatening conditions 18 months
of amnesty to live and work in the
United States.
Associate professor JoNel
Newman, who directs the Health
and Elder Law Clinic, knew that
many in Miami’s large Haitian com-
munity would need help completing
the complicated TPS application and
coming up with the $470 processing
fee and other affiliated costs in time
for the filing deadline. “The Haitian
TPS Project provides a valuable
service because it enables those who
are here the opportunity to work
and send money back to Haiti,”
Newman says.
The school’s TPS activities
spawned a comprehensive training
and processing model that may be
deployed at any legal service institu-
tion or law school clinic. They also gar-
nered national recognition, including
the prestigious Clinical Legal Education
Association’s Award for Excellence in a
Public Interest Case or Project.
“We know now what we sus-
pected before we started this effort,”
Newman says. “TPS does help Haiti.
Lawyers can help Haiti. We can be
first responders in a way.”
Within a day of the devastating January 12 earthquake
in Haiti, Miller School of Medicine teams began
arriving in Port-au-Prince to save the lives of critically
injured survivors. In the months since, UM faculty,
staff, students, and alumni have continued to provide
a diverse array of urgently needed services to help
Haiti recover and rebuild.
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Just days before a group of
nations pledged an estimated
$5.2 billion toward Haiti’s recovery
during a donors conference in New
York, the charrette’s 12 design teams
presented ideas ranging from build-
ing civic spaces such as churches,
clinics, and community centers to
restoring Port-au-Prince’s historic
district. After soliciting feedback
about the proposals from residents
throughout Haiti, government
officials will return to UM with
potential projects needing design.
L A V I D A I N T E R N A T I O N A L
Born to Russian-Panamanian parents, Kristina Rosales, A.B. ’10, had lived in Eastern Europe,
Central America, and Washington, D.C., by age 14. “I love the international lifestyle,” says
Rosales, who speaks Portuguese, Spanish, and Russian, with conversational knowledge of
French and Creole.
That made the University of Miami, with its global orientation, a natural draw. While at
UM, in addition to majoring in international studies and political science and minoring in Latin
American studies and economics, Rosales interned at the Center for Hemispheric Policy, took
part in Get Out the Vote, joined the national leadership honor society Omicron Delta Kappa,
and earned three prestigious prizes, including a Fulbright Award.
Rosales has been a passionate advocate for victims of Haiti’s devastating earthquake; she
herself is a survivor of the catastrophe, which occurred when she was taking an intersession
course in Cite Soleil. A Haitian youth initiative that Rosales helped develop was one of just
13 projects—out of some 250 submitted by UM students—that received seed money from the
University for the Clinton Global Initiative University hosted by UM in April.
It was through her experiences in Haiti that Rosales learned of the problems faced by
young people in Rio de Janeiro’s slums; through her Fulbright, she is currently conducting nine
months of independent research in Brazil. She’ll then attend Columbia University’s social and
urban studies graduate program before pursuing her foreign service career. What keeps her
going? The answer, she says, is simple: “I’m just a very curious and ambitious individual.”
The School of Education’s Guerda
Nicolas, a native of Haiti who lost
family members in the January earth-
quake, helped to coordinate disaster-
related mental health assessments,
trainings, and counseling services in
Haiti and in Miami’s Haitian com-
munity. The nation’s deep cultural
traditions, she has written, allow it to
“flourish in the midst of the storms.”
Rosenstiel School professor Tim Dixon
spearheaded efforts to analyze seismic
data from the January quake to help
identify safer locations for rebuilding
critical components of Haiti’s
infrastructure.
L O O K I N G T O W A R D T H E F U T U R E
A team of University of Miami geolo-
gists says there’s a high probability
for another destructive tremblor in
Haiti’s not-too-distant future. Using
optical data and satellite imagery,
the geologists discovered a buildup
of seismologic stress beneath the
island’s surface that could trigger
another quake.
Tim Dixon, a professor of
marine geology and geophysics at
the Rosenstiel School of Marine and
Atmospheric Science, has urged
the Haitian government to rebuild
critical parts of its infrastructure
away from the danger zone. Partici-
pating in efforts to find feasible sites
is Dixon’s colleague Falk Amelung,
the task leader of a GEO (Group on
Earth Observations) Supersite that
provides scientists with satellite
data about seismic measurements
in Haiti.
At a collaborative charette that
UM hosted in March at the request of
Haiti’s Commission on Planning and
Reconstruction, attendees sketched
the outlines of roads, houses, hospi-
tals, and schools, partnering with UM
faculty and students on a recovery
plan for their nation. “There’s an
urgency in what’s being done here,”
explained School of Architecture
Dean Elizabeth Plater-Zyberk.
T R A N S C E N D I N G T U R M O I L
Haitian-born anthropology profes-
sor Louis Herns Marcelin was in
Haiti with students such as Kristina
Rosales (see profile on facing page)
when the earthquake hit. In March
the Center for Latin American Stud-
ies invited Marcelin, chair of the
Interuniversity Institute for Research
and Development (INURED), to lead a
discussion on the Coral Gables cam-
pus about the pulverization of Haiti’s
already fractured education system.
A report conducted by INURED,
composed of faculty from UM and
more than 35 other universities
assisted by students from the Haitian
Education & Leadership Program,
estimates that 121 to 200 profes-
sors and anywhere from 2,599 to
6,000 students in higher education
perished. Marcelin says that estab-
lishing standardized learning centers
throughout the provinces is one way
to rebuild the nation’s intellectual
infrastructure.
School of Communication lec-
turer Yves Colon took a two-month
leave from the University to work
with Internews, a media develop-
ment organization serving poor and
disaster-stricken countries. Colon
was the only Creole-speaking editor
on the group’s Port-au-Prince team,
which created daily 10- to 15-min-
ute newscasts burned onto CDs and
rushed by motorcycle to 25 local
radio stations. “I wanted to do some-
thing that would be useful,” he says.
The desire to open portals of
knowledge inspired the School of
Communication, which launched
kozeayiti.org this past April. A vol-
unteer effort of faculty, staff, alumni,
students, and members of the Haitian
diaspora, the bilingual (English/Cre-
ole) initiative, allows “young Haitian
media makers and journalists to
develop and distribute stories
through its website to media in
Haiti and the world.”
Sasha Kramer, international
studies adjunct professor and visit-
ing scholar at UM’s Center for Latin
American Studies, was teaching
about sustainable development chal-
lenges in Haiti when the earthquake
hit. Once her students returned to
School of Communication lecturer
Yves Colon spent two months in Haiti
working with international media or-
ganization Internews to mentor young
journalists and create daily newscasts.
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the States, Kramer began transport-
ing supplies and patients through her
nonprofit organization SOIL (Sustain-
able Organic Integrated Livelihoods).
Haitian-born clinical psychologist
and UM associate professor Guerda
Nicolas, who lost family members to
the quake, has worked with colleagues
in epidemiology and nursing to coor-
dinate disaster-related mental health
assessments and trainings as well as
counseling services in Miami’s large
Haitian community and in Haiti.
The cultural traditions of her native
country, she has written, are “the
roots that continue to sustain Haiti
and that allow it to flourish in the
midst of the storms.”
F A C I L I T A T I N G D I V E R S E D I A L O G U E S
This year marked the introduction of
a new, essential resource for nurtur-
ing scholarly collaboration in the hu-
manities and enriching the region’s
intellectual culture. The first of its
kind in South Florida, the Center for
the Humanities in the College of Arts
and Sciences offers a dynamic slate
of programming accessible to the
public, both on campus and online.
Symposia, lectures, and
workshops are among the activities
that unite UM faculty from differ-
ent disciplines with groundbreak-
ing interdisciplinary scholars from
around the world. February’s Atlantic
Narratives symposium, which exam-
ined works in and about the Atlantic
world through the mid-19th century,
featured panelists from institutions
including the University of Wisconsin-
Madison, McGill University, the
University of Virginia, and Ohio State
University as well as from UM. In
April, the Trans Global/Global Trans
symposium convened some of the
nation’s top leaders in the field of
gender studies to explore global
perspectives on the formation of
gender and sexual identity.
Symposia like these, says center
director and professor of English
Mihoko Suzuki, demonstrate how
scholarship in humanities disciplines
C R E A T I V E C R O S S - F E R T I L I Z A T I O N
Can an elusive idea be conveyed with
Legos? Can a concept be carved out
of a block of wood? Last fall, biology
professor Keith Waddington debuted
a new class designed to encourage
students to explore the techniques
of both liberal arts and the scientific
method, seeking a creative cross-
fertilization that would spawn wholly
new processes and projects.
Called, appropriately enough,
ArtScience, the course is designed
“to bring together students from
the humanities and sciences, with
the hope that they see where their
approaches are different and where
they overlap,” says Waddington.
“I give them unique topics and get
them to think really creatively, using
art and science alike.”
Waddington himself is both a
scientist and an artist; with wife Mindy
Nelson, he has hosted creativity-
based salons, where some aspects of
the new course were developed. In
addition to readings and discussions
about interdisciplinary endeavors,
students are assigned to explore the
scientific method’s ability to help
solve unconventional problems in
the arts.
One class project assigned
students to take surveys of common
nightmares, then visually represent
the results. In another, students
built and populated fanciful islands,
then took scientific measurements
of the creatures they’d created. “It
was interesting to contrast the col-
laborative outcomes with how we
solved problems initially,” recalls
architecture major Michael O’Neil.
“We learned how important art and
science are to each other.”
According to Mihoko Suzuki, director
of the recently launched Center for the
Humanities, one of the center’s aims
“is to bring dialogue and inquiry to the
South Florida community in order to
enrich its public intellectual culture.”
Opportunities for collaborative cross-
fertilization between art and science
are explored in biology professor Keith
Waddington’s ArtScience class. In one
assignment, students build islands
from materials such as Legos, then
measure the density of their creations’
plant and animal life.
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Amid our world’s ever-increasing pace and complexity,
humanistic studies provide a vital framework to help
transmute information into understanding. At UM,
high-tech tools and scientific perspectives complement
lively intellectual inquiry that engages with contem-
porary issues while expanding the possibilities
of human endeavor. Opening festivities for the Center for the Humanities included a lecture on
Shakespeare’s relevance to modern culture by renowned Harvard University
scholar and author Marjorie Garber.
provides “the necessary contexts for
us to arrive at a more informed under-
standing of issues we face in the con-
temporary world.” Strong attendance
at the center’s inaugural events—from
members of the general public and
faculty to students from colleges
throughout Florida—demonstrates
the ability of the center to foster
constructive dialogue on important
topics among people who might not
otherwise interact.
The center’s robust online pres-
ence sets it apart from the 200-plus
centers of its kind around the world.
Its website (www.humanities.miami.
edu) includes features like Insight
Tracks—video commentary from
UM professors on upcoming events
in collaboration with area arts
organizations—and BookTalk, which
provides discussion by faculty who
are publishing new work. Visitors
to the interactive site can also catch
archived video from lectures and
symposia.
collections, the Libraries also award
digital fellowships to faculty seeking
to digitize resources that will have a
significant impact on teaching, learn-
ing, and research.
“Our ultimate goal is to create a
central scholarly virtual resource that
will meet the needs of UM faculty,
scholars, and students in the arts,
humanities, and beyond,” says
Walker. Thanks in large part to his
efforts, that goal is clearly in view.
I S L A N D E X P L O R A T I O N S
Nikita Shiel-Rolle, A.B. ’10, may well have seawater running through her veins. The 23-year-old
Irish-Bahamian is never far from her beloved ocean—whether at home in Nassau, visiting her
grandparents in Andros, researching in the Exumas, or exploring in the Galapagos, where she
spent her final semester as a University of Miami marine affairs and policy major.
An accomplished diver, underwater photographer, and videographer, Shiel-Rolle is a
founder of the Danguillecourt Project, an environmental nonprofit dedicated to preservation of
the Bahamian ecosystem, created in partnership with the Rosenstiel School of Marine and Atmo-
spheric Science. Hundreds of her photographs appear in the 450-page coffee-table book Islands
of the Sun: A Tribute to the Northern Exuma Cays, Bahamas, which Danguillecourt published
last year.
Lured to UM by the Rosenstiel School’s world-class marine science programs, Shiel-Rolle
also dived into ample opportunities to diversify her fields of study, graduating last spring with
minors in business and botany. For her junior and senior years, she received a full scholarship
through the Organization of American States; during the summer in between, she accompanied
UM faculty on a National Geographic expedition to the spectacular blue holes of the Bahamas.
Already the founding director of Young Bahamian Marine Scientists, an environmental
sustainability mentoring and education initiative, Shiel-Rolle is dedicated to inspiring future
marine conservationists and an active citizenry. Now back in the Caribbean to help protect her
treasured islands, she says, “I am committed to creating positive environmental change within
the Bahamas through education.”
resources. These achievements have
helped earn the Libraries a spot
among the nation’s top 50 academic
research libraries.
The Libraries’ 44,000 digital
resources include photographs, man-
uscripts, videos, books, and other
objects drawn from 36 University
of Miami collections, including the
Cuban Heritage Collection, oral his-
tories of South Floridians, theses and
dissertations, thematic exhibits, and
more. Online library users also can
access ARTstor, a database of more
than one million images in the arts,
architecture, humanities, and social
sciences. In an innovative approach
to broadening access to scholarly
In recent years, Dean and
University Librarian William
Walker has spearheaded dramatic
growth at the University Libraries,
which serve as a technologically
advanced, resource-rich partner
in scholarly activities throughout
the University community.
A growing range of general and special
collections and University Archives
holdings are digitized at the University
Libraries, preserving often fragile
materials and making them more
broadly available to scholars.
E T H I C A L L Y E N G A G E D
From stem cell research to CEO com-
pensation, ethical considerations
inform every human endeavor. “You’ll
find ethical issues in the headlines
of any major newspaper,” says Anita
Cava, co-director of University of
Miami Ethics Programs and professor
of business law in the School of
Business Administration.
Learning to grapple with such
challenges, says co-director Ken
Goodman, professor of medicine and
philosophy, “is precisely what a great
university is all about. Rules are fine
and opinions are nice, but serious
ethics demands reasons for beliefs.”
A suite of University-wide
interdisciplinary initiatives that drive
an extraordinary range of classes,
conferences, research projects, and
seminars, the UM Ethics Programs
include the only World Health
Organization Collaborating Center
in Ethics in the United States. The
Ethics Programs are an international
leader in ethics and information
technology and have an NIH grant to
foster biomedical research ethics in
Latin America. Ethics programming
now permeates nearly every aspect
of University life and has inspired ex-
tracurricular activities such as the UM
Ethics Society, whose debate team
has racked up a series of victories
in the Intercollegiate Ethics Bowl.
Community leader and UM
Trustee Adrienne Arsht has con-
tributed $3 million to UM Ethics
Programs over the past four
years, supporting the debates, a
distinguished speaker series, and
research grants.
Ultimately, says Cava, “We’re
trying to help students reason
through issues and make good deci-
sions that will withstand scrutiny.”
Professors Ken Goodman and Anita
Cava co-direct UM Ethics Programs,
a suite of University-wide initiatives
devoted to examining the ethical
dimensions of business, medicine,
law, and other disciplines.
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I N T E L L E C T U A L H U B , I N V A L U A B L E R E S O U R C E
In the 21st century, libraries are much
more than repositories of books. The
University of Miami Libraries are on
the cutting edge of what a contem-
porary academic library can be.
With rotating exhibitions, liter-
ary readings, information literacy
and digital technology courses, rare
objects that tell the history of South
Florida and surrounding regions, and
an on-site Starbucks, the Otto G.
Richter Library, the flagship of
the University Libraries system,
is a social, cultural, and intellec-
tual hub for the entire Univer-
sity community.
Led by Dean and Univer-
sity Librarian William D. Walker,
the Libraries have in recent
years seen a 35 percent growth
in holdings—now more than
3.3 million volumes—and an
explosion of multimedia and
networked information
JULY 2009
Helping Structures
Withstand Storms
s The National Institute of Stan-
dards and Technology of the U.S.
Department of Commerce awards
the University of Miami a $15 mil-
lion grant funded by the American
Recovery and Reinvestment Act to
build a new high-tech research facil-
ity at the Rosenstiel School of Marine
and Atmospheric Science, where
scientists will study how structures
and their surrounding environment
are affected by hurricanes. The facil-
ity will also house a state-of-the-art
Marine Life Science Center.
No. 1 Again
For the sixth year in a row, the Miller
School of Medicine’s Bascom Palmer
Eye Institute is ranked the No. 1
hospital in the country for ophthal-
mology in the 20th annual survey of
“America’s Best Hospitals,” published
by U.S.News & World Report.
AUGUST 2009
Cracking the Top Tier
The University of Miami cracks the
top tier of U.S.News & World Report’s
2010 edition of “America’s Best
Colleges,” coming in at No. 50. The
following year, UM rose to No. 47 in
the rankings.
Gift Advances Genomics
s The Miller School’s Miami Institute
for Human Genomics, nationally
known for its groundbreaking work
in unraveling some of the medical
mysteries behind autism and many
common diseases, receives a
$20 million naming gift from
the John P. Hussman Foundation to
support its critical research efforts.
SEPTEMBER 2009
Linking Well-Being with Law
The School of Law establishes the
nation’s first Therapeutic Jurispru-
dence Center. The center conducts
theoretical and empirical research in
an innovative field that uses the tools
of the behavioral sciences to increase
the understanding of law and how it
can be reshaped to diminish its anti-
therapeutic effects and maximize its
therapeutic potential. It also pub-
lishes scholarly books, articles, and
reports; trains judges and lawyers;
conducts community programs; and
hosts conferences, symposia, and
other educational programs.
Mancini in Miami
s After ten years in Los Angeles, the
Henry Mancini Institute finds a new
home at the Frost School of Music.
HMI is embedded within the Frost
School curriculum, preparing music
students for careers as working
musicians. In addition, the Frost
School now houses the institute’s
library, which consists of hundreds
of pieces for orchestra by Henry
Mancini and other film and contem-
porary composers.
A Tooth for an Eye
s In the first such operation in the
United States, surgeons at Bascom
Palmer Eye Institute implant a tooth
in a 60-year-old blind woman’s
eye, using it to anchor an artificial
cornea that has restored her vision.
Sharon “Kay” Thornton, of Smithdale,
Mississippi, had been blind for nine
years due to Stevens-Johnson syn-
drome, a rare, serious skin condition
that destroys the cells on the surface
of the eye, causing severe scarring
of the cornea.
Graduate School Enrollment
Surges
s The Graduate School records a
significant increase in enrollment in
fall 2009, admitting 28 percent more
students than in 2007 or 2008.
Capturing Carbon
The Department of Energy awards
$1.7 million to a team of researchers
at the Rosenstiel School to investi-
gate new methods for monitoring
leakage from potential carbon diox-
ide (CO2) reservoirs, which are used
to store the gas underground—keep-
ing it out of the atmosphere, where it
would do substantial harm.
New Clinic Helps Immigrants
The School of Law launches an ambi-
tious clinic in which students will
represent low-income immigrants
in South Florida. Students are the
primary advocates of the clinic’s
clients, accepting cases of low-income
immigrants of all nationalities in a
full range of immigration matters,
including asylum claims and deporta-
tion defense of longtime permanent
residents.
OCTOBER 2009
Speaking of Engineering
The College of Engineering’s 2009-
2010 Distinguished Speaker Series
gets under way, featuring profession-
als who, through their research and
educational accomplishments, have
made significant contributions to the
engineering profession and society
at large.
PR Business
s The School of Business Adminis-
tration launches its Executive M.B.A.
program in Puerto Rico, enabling
professionals living and working in
the region to earn the degree with-
out interrupting their careers. The
school’s faculty members travel to
Puerto Rico to teach the classes.
NOVEMBER 2009
Supporting the Humanities
The College of Arts and Sciences
establishes and inaugurates South
Florida’s first Center for the Humani-
ties, which is dedicated to supporting
humanities, arts, and interpretive so-
cial science research and teaching, as
well as presenting public programs to
enrich the region’s intellectual culture.
A Gift from Goizueta
s The Goizueta Foundation donates
$2.4 million to the University of
Miami to support a comprehen-
sive University-wide plan that will
enhance and expand the reach of
the Otto G. Richter Library’s Cuban
Heritage Collection.
Throughout the past year, the University of Miami
continued on the fast track that has made it one of
the nation’s most distinguished research universities.
The dynamic members of the University community
capitalized on opportunities and realized myriad
accomplishments in intellectual inquiry, research,
scholarship, and service.
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M I L E S T O N E S
Cataloging Marine Life
s The Rosenstiel School launches a
first-of-its-kind interactive database,
the Digital Atlas of Marine Species
and Locations, which visually cata-
logues marine life while providing
encyclopedic content to users.
Faster, Higher, Smarter
University of Miami student-athletes
who began college between 1999
and 2002 have an overall graduation
rate of 82 percent, according to
figures released by the NCAA. The
UM rate exceeds the 79 percent
figure compiled by all NCAA
Division I universities.
Online from Anywhere
The College of Engineering unveils
its Virtual Academic Computing
(ViAComp) platform, which can be
deployed from anywhere in the
world, allowing students to access
sophisticated software applica-
tions through the Internet via their
laptops, iPhones, or other mobile
devices, completely untethered.
Fraternity House Opens
The University of Miami chapter of
Sigma Alpha Epsilon fraternity joins
members of the UM community in
dedicating the first fraternity house
to be built on school grounds in
four decades.
DECEMBER 2009
Inaugural Class
s The School of Nursing and Health
Studies graduates the first class from
its new Doctor of Nursing Practice
program, which prepares expert
nurse practitioners to design, admin-
ister, and evaluate practice interven-
tions and health care systems, with
a special focus on reducing health
care disparities.
Wiping Out Hunger
With poverty a major cause of
hunger and food insecurity in the
United States, the School of Law es-
tablishes a new program through its
Center for Ethics and Public Service
aimed at addressing the problem in
South Florida. The Hunger Project
is designed to alleviate hunger in
low-income and impoverished local
communities through active solicita-
tion of non-perishable food items
to support local food pantries and
distribution programs.
JANUARY 2010
Helping Haiti
s One day after a powerful 7.0-mag-
nitude earthquake strikes Haiti, Miller
School medical personnel arrive in
Port-au-Prince to begin caring for the
injured, setting in motion a massive
University of Miami medical relief
effort that will include the establish-
ment of a 240-bed field hospital.
Foote’s Field
The University dedicates the Edward
T. Foote II University Green, giving a
new name to the area between the
Richter Library and Whitten Univer-
sity Center where Foote, UM’s fourth
president, presided over numerous
commencement ceremonies.
M.B.A. Program among the Best
s The full-time M.B.A. program at
the School of Business Administra-
tion is ranked No. 52 in the U.S. by
the influential Financial Times in the
newspaper’s annual M.B.A. rankings
issue, which also ranks the school
No. 35 in the nation and No. 40 in the
world for research.
Ocean Science for Future
Generations
s The University of Miami announc-
es the creation of the R.J. Dunlap
Marine Conservation Program. This
joint initiative of the Rosenstiel
School of Marine and Atmospheric
Science and Leonard and Jayne
Abess Center for Ecosystem Science
and Policy will focus on advancing
ocean research through hands-on
field and virtual learning experi-
ences for high school and university
students.
UM Raises $1.3 Million for
United Way
Despite a sluggish economy, the
University of Miami has the most
successful United Way campaign in
its history, raising $1.3 million for the
annual fundraising effort to benefit
the community.
FEBRUARY 2010
Stimulating the Neurosciences
The National Institutes of Health
awards UM a $14.8 million grant
funded by the American Recovery
and Reinvestment Act to build a
Neuroscience and Health Annex,
which will create an interactive hub
for interdisciplinary research based
on neurological imaging and health
research and provide facilities to be
shared by scientists from the Col-
lege of Arts and Sciences and Miller
School of Medicine.
Film Treasures
s The School of Communication
acquires the $32 million Norton
Herrick collection, which includes
approximately 3,500 high-quality
films from the golden age of mov-
ing pictures, spanning the 1930s
though the 1970s. Among the rare
films in the collection: early silent
films featuring Hollywood stars such
as Charlie Chaplin, Buster Keaton,
and Mack Sennett’s Keystone Cops.
The golden age of television is also
represented in programs such as This
Is Your Life, The Roy Rogers and Dale
Evans Show, and The George Burns
and Gracie Allen Show.
Helping Miami’s Poor
s The School of Law launches two
new clinics aimed at helping needy
and underrepresented clients. The
Federal Appellate Clinic provides
upper-level students with the
opportunity to plan, research, and
draft pending federal appeals for
indigent criminal defendants referred
by the federal public defender for
the Southern District of Florida. The
Tenants’ Rights Clinic allows students
to represent clients being evicted
from public and subsidized housing,
receiving Section 8 terminations,
or having their affordable housing
applications denied.
All’s Well at the “U”
s The University of Miami takes a
major step toward improving the
overall health of its workers and their
family members by rolling out a new
employee wellness program, Well
’Canes, that includes everything from
cooking and exercise classes and free
preventive care to vending machines
that dispense fresh fruit.
Recording Contract
The School of Law and the Frost
School of Music launch a new joint
degree program in law and music
business. The first of its kind in
the country, the program enables
students to earn a J.D. and a Master
of Music in Music Business and
Entertainment Industries.
Cancer Colloquium
The School of Education, in conjunc-
tion with the School of Nursing and
Health Studies, hosts the first annual
“From Surviving to Thriving” col-
loquium. The event provides health
care professionals and survivors with
up-to-date information on physical
fitness and nutrition in breast cancer
survivorship.
Landmark Summit
s The College of Engineering or-
ganizes and hosts a first-of-its-kind
joint regional meeting between the
National Academy of Engineering
and the Institute of Medicine, where
scientists and physicians gather to
examine the role of engineering in
improving health care.
MARCH 2010
Rebuilding a Nation
For five days in late March, Haitian
architects and engineers—unable to
work effectively in their own studios
back home, where infrastructure was
destroyed by the devastating January
12 earthquake—gather at the School
of Architecture to collaborate with
professors, students, and local plan-
ners on an ambitious post-disaster
plan for the Caribbean nation’s
recovery. Proposals presented to
the Haitian government include
plans to spur economic growth in
outlying regions.
Dream Season
s The University of Miami women’s
basketball team defeats the Michigan
Wolverines to secure a berth in the
Women’s National Invitation Tourna-
ment Championship Game, marking
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the first time in team history that UM
advances to the finals of the postsea-
son tournament.
The Memory of an Elephant
Nelson Dellis, a graduate student
in the College of Arts and Sciences’
Department of Computer Science,
breaks a national record at the 13th
Annual USA Memory Championship
by remembering the first 178 digits
of a randomly generated 500-digit
number, with only five minutes to
study it.
APRIL 2010
Moving Up
s The University of Miami places
high in the 2011 edition of “America’s
Best Graduate Schools,” published by
U.S.News & World Report. The Miller
School of Medicine ranked No. 47,
moving up four slots from No. 51 last
year. The School of Law has the most
dramatic rise, moving up 11 slots in
one year. The school is ranked 60th
this year out of 188 schools; last year
it was ranked number 71.
Global Initiative Comes to UM
s The third Clinton Global Initiative
University conference is held at UM.
More than 1,300 students from 83
countries and all 50 states, along
with university presidents, adminis-
trators, and national youth leaders,
gather at the three-day meeting,
discussing and devising strategies
to make the world a better place.
Among the issues addressed: educa-
tion, the environment and climate
change, peace and human rights,
poverty, and global health.
Former President Bill Clinton,
who launched CGI U in 2007 to en-
gage the next generation of leaders
from college campuses around the
world, opens the conference with a
plenary address at the BankUnited
Center. He calls to the stage a group
of students to recognize them for
starting service projects, dubbed
“Commitments to Action,” which are
at the heart of his initiative.
In all, UM students account for
about 250 of the more than 1,000
new commitments at the meet-
ing, ranging from the creation of a
network of community youth centers
in the Haitian slum of Cite Soleil to a
program to rescue young victims of
sex trafficking in Miami.
Improving the Gift of Hearing
s During a news conference at the
Clinical Research Building, noted res-
taurateur Barton G. Weiss announces
that his Barton G. Kids Hear Now
Foundation has committed $5 million
to establish the Barton G. Kids Hear
Now Cochlear Implant Family Re-
source Center at the Miller School’s
Ear Institute.
An Academic Boost
s The University honors the
Camner family for its generous gift
that dedicates the newly named
Camner Academic Resource Center,
which provides tutoring, counseling,
workshops, accessibility services,
and other forms of assistance to
thousands of undergraduate and
graduate students each year.
Investing in the Future
of Nursing
The School of Nursing and Health
Studies receives funding approval
for two $20,000 scholarships from
the Jonas Nurse Leaders Scholar
Program, a new national initiative
designed to increase the number of
doctoral-prepared nurse educators
and leaders. The scholarships will
benefit two qualified B.S.N.-to-Ph.D.
students.
Addressing Health Policy
The School of Business Administra-
tion announces that it will establish
a Center for Health Sector Manage-
ment and Policy, which will con-
duct and publish research; act as
a resource for technical assistance
and consultation on health care
management practices; and provide
interactive conferences and forums
to educate industry professionals,
policymakers, citizens, and the Uni-
versity community.
A Taste of Margaritaville at UM
s From flying to Miami on an
expired credit card to penning his
famous “Margaritaville” while driving
along A1A, the colorful stories of
musician Jimmy Buffett, along with
a few tunes, entertain a University of
Miami audience during the Stamps
Family Charitable Foundation Distin-
guished Visitors Series, sponsored by
Roe and Penny Stamps.
Four-Star Recognition
s After evaluating more than 5,500
of America’s largest charities, Charity
Navigator ranks the University of
Miami No. 1 among charities that
have earned the most consecutive
Charity Navigator 4-Star ratings,
demonstrating fundraising efficiency
and ongoing fiscal excellence.
A Sturdier Launch Pad
The Blackstone Charitable Founda-
tion, in collaboration with the New
Economy Initiative for Southeast
Michigan, announces that Wayne
State University, Walsh College,
and the University of Miami have
been selected as partners for the
foundation’s first significant grant of
$2 million. Blackstone Launch Pad
operations will be created at Wayne
State and Walsh (based on UM’s
successful Launch Pad, an entrepre-
neur and innovator resource center),
serving as a national model for
fostering entrepreneurship through
higher education. The major grant
to UM’s Launch Pad comes only a
few months after the Ewing Marion
Kauffman Foundation announces a
grant to help sustain and grow the
center.
Health and Elder Law Clinic
Wins Top Prize
s The Health and Elder Law Clinic
wins the Clinical Legal Education
Association’s prestigious Award for
Excellence in a Public Interest Case
or Project for its quick and success-
ful commitment to helping Haitians
in South Florida obtain Temporary
Protected Status following the Janu-
ary 12 earthquake in Haiti.
MAY 2010
Nurturing Young Scientists
s The University of Miami receives a
$1.4 million grant—its fifth con-
secutive—from the Howard Hughes
Medical Institute to strengthen its
undergraduate science education
program. The College of Arts and
Sciences, where the program resides,
will use the resources to help attract
first-generation college students
and those from groups traditionally
underrepresented in the sciences to
pursue careers in science.
Medical Records Go Electronic
UHealth—University of Miami Health
System catapults itself into the elec-
tronic realm of health care records
with the launch of UChart, a secure
online portal for patients to access
portions of their medical records
anytime, from anywhere.
Funding the Fight
against Cancer
The 21,000-member Papanicolaou
Corps for Cancer Research gives
$3.2 million to fund vital cancer
research at Sylvester Comprehensive
Cancer Center.
Making the Grade off
the Gridiron
s The NCAA honors the University
of Miami football program for a
multiyear Academic Progress Report
score in the top 10 percentile. UM was
the only Bowl Championship Subdivi-
sion team that finished in the final
USA Today Coaches Poll and AP Top
25 College Footbal Poll after the
2009 season.
CIBER Space
The U.S. Department of Education
awards a major grant to the Univer-
sity of Miami to establish a Center
for International Business Education
and Research (CIBER), which will be
housed at the School of Business
Administration and will carry out
programs that increase and promote
the nation’s capacity for international
understanding and competitiveness,
particularly in the service sector.
JUNE 2010
Promoting Well-Being
s The School of Education creates
the Dunspaugh-Dalton Founda-
tion Community and Educational
Well-Being Research Center. Funded
with a gift from the Dunspaugh-
Dalton Foundation, the center seeks
to prevent educational, emotional,
physical, and social problems, while
promoting well-being in individu-
als, relationships, organizations, and
communities through interdisciplinary
research, university-community part-
nerships, educational and leadership
training, and consultation services.
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The University’s performance in fiscal year 2010 improved significantly
over last year’s as the Great Recession wound down. This performance
reflected the strength of the University’s major revenue sources—tuition,
grants and contracts, and clinical care—as well as improved investment
markets and the effects of cost-containment measures implemented
over the last two years.
Report on Business and Finance
As the economic uncertainty contin-
ues, we remain focused on strength-
ening our balance sheet (recognizing
that this will be more marathon than
sprint) and otherwise improving
financial performance.
Overall, the University’s net
assets increased $43.1 million, or
3 percent. This year’s increase, much
like the prior year’s decrease, was
largely driven by changes in the value
of our investments. The endowment
has a long way to go to regain its
2007 peak level, but FY 2010 returns
helped considerably, adding $80 mil-
lion to endowment net assets after
accounting for gifts and normal
spending distributions. Endowment
spending represents less than 2 per-
cent of operating revenues, which
has minimized the effect of the mar-
ket decline on University operations.
Unrestricted net assets from
non-operating activities increased
$82.2 million, driven primarily by a
17 percent investment return on
Growth Pool assets, made up of endow-
ment and a portion of working capital.
Both the Growth Pool and the pension
trust benefited from solid returns
across a number of asset classes.
Operating revenues of $2.216 bil-
lion were up $125 million, or 6 percent,
while operating expenses increased
just $63 million, or 3 percent, resulting
in an increase in net assets from
operating activities of $12.5 million.
Tuition and fees revenues
increased $23 million, or 6 percent,
due to a modest rate increase and
growth in student enrollment in
graduate programs, especially law.
Enrollment has held steady dur-
ing the recession, helped by the
strengthening of the UM brand. We
were pleased to be recognized in the
recently released U.S.News & World
Report college rankings as the top
school in Florida, with a three-notch
improvement nationwide to 47th.
Prospective students are recognizing
the “U” as well. Freshman applica-
tions for the Fall 2010 semester
increased 18 percent over Fall 2009.
Grants and contracts revenues
were up nearly $7 million, or 1.5 per-
cent, due primarily to an increase in
federal grants.
Patient care operations revenues
(both medical professional practice
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and hospitals and clinics) were up
$101 million, or 10 percent. Expenses
were up just $37 million, or 4 percent.
All three University hospitals had
significant growth in net patient rev-
enue, with Sylvester Comprehensive
Cancer Center/UMHC up 10 percent,
University of Miami Hospital (UMH)
up 15 percent, and Anne Bates Leach
Eye Hospital (ABLEH) up 7 percent.
For the seventh consecutive year,
Bascom Palmer Eye Institute, resident
at ABLEH, was named the country’s
top eye hospital by U.S.News & World
Report. UMH, in its second full year
of University ownership as a
multi-specialty acute care hospital,
increased net patient care revenues
significantly through its growing
array of outstanding clinical services
(including state-of-the-art robotic
surgical capabilities) and solid core
of community physicians. Outpatient
visits, in particular, had solid growth
due to expanded multidisciplinary
programs in areas such as sports
medicine, complex imaging, bariat-
rics, pain management, and gastro-
intestinal procedures.
Non-operating activities, where
the bulk of the investment perfor-
mance improvement is reflected on
the financial statements, was a posi-
tive $82 million, as compared to last
year’s negative $287 million. What
a difference a year makes!
Pension-related changes for
the Employees Retirement Plan
(ERP) and other post-retirement
benefits were a negative $53 million,
as compared to last year’s negative
$112 million. The University’s
$42 million in plan contributions and
$66 million (18 percent) return on
invested capital was more than offset
by actuarial adjustments resulting
from a 1 percent reduction in the
discount rate. The ERP has been
frozen to new participants since June
1, 2007, when a new defined contri-
bution plan was launched. The ERP
will require large contributions each
year for the foreseeable future.
Gifts and trusts from operating
and non-operating sources increased
$2.8 million. It is encouraging to see
a slight uptick in philanthropy. We are
confident that our donors’ generosity
will rebound over time along with
the overall economy.
Cost containment played an
important role in our improved
results, with dozens of initiatives
contributing. Overtime expenses
were reduced. Monthly tuition bill-
ing went online, saving paper and
postage. Document management and
storage costs were reduced. Shuttle
routes around campus were revised,
improving efficiency and customer
service. Though the savings from
most changes were modest, signifi-
cant savings were achieved on
a University-wide basis.
The University has an ambitious
strategic vision and mission that can
only be achieved through the efforts
of its talented faculty and staff. Part
and parcel of that success is the well-
being of our people. Accordingly, the
University adopted a Wellness Philos-
ophy that established a framework
and expectations for employees and
managers to actively support health,
a healthy lifestyle, and a culture
where wellness is valued.
At the same time, we’ve taken
steps to improve the safety of our
campuses, implementing a new
Emergency Notification System
and enhancing storm and disaster
preparedness.
We are using capital resources
sparingly and strategically. On
the Coral Gables campus, the
67,000-square-foot Newman Alumni
Center opened in October. An
expansion to the Herbert Wellness
Center, a student favorite, is under
way and will be completed next
spring. Deep in the planning process
are the Miguel B. Fernandez Family
Entrepreneurship Building and, at
the Rosenstiel School campus, the
Marine Technology and Life Sciences
Seawater Research Building. In
addition, we are developing plans
for a state-of-the-art health center
on the Coral Gables campus that
will provide easy access to world-
class medical care for faculty, staff,
students, and residents of South
Miami-Dade County.
At the Miller School of Medicine
campus, construction was completed
on a 23,000-square-foot modular
research laboratory that will house
basic scientists from neurology
and medicine. Ground has been
broken on the first building at the
University of Miami Life Science
& Technology Park on the eastern
border of the medical campus. The
250,000-square-foot facility is being
developed by Wexford Science &
Technology, a leading developer of
life science parks. The first tenant,
the UM Tissue Bank, is scheduled for
move-in the summer of 2011.
The Miller School has begun im-
plementing UChart, a state-of-the-art
clinical enterprise information system
that will improve access to patient
records and increase the efficiency
of scheduling and billing.
Finally, I am pleased to report
that two important leadership posi-
tions in Business and Finance were
filled this year. Nerissa Morris joined
the University as vice president of
human resources after a long and
successful career with the Ford
Motor Company. John Shipley, a
seasoned financial executive at
Purdue University, became our vice
president of finance and treasurer.
Nerissa and John succeeded
Roosevelt Thomas and Diane Cook,
respectively, each of whom provided
extraordinary service to the Univer-
sity for more than 30 years.
In closing, the board and the
administration are committed to
managing the fiscal affairs of the Uni-
versity in a responsible manner. Our
success is dependent not only on our
13,000-plus faculty and staff, whose
contributions are innumerable, but
also on our students, trustees, donors,
and other friends of the University.
Together they make the University a
wonderful place to teach, work, and—
most importantly—learn.
Joe Natoli
Senior Vice President for
Business and Finance
and Chief Financial Officer
0
1,000
500
1,500
3,000
2,500
2,000
$3,500
TOTAL ASSETS(in millions)
2010200920082006 2007
3,240
2,941
2,503
2,9122,982
0
200
100
300
400
600
700
500
$800
ENDOWMENT FUNDS(in millions)
2010200920082006 2007
736
621
741
539
618
0
5,000
10,000
20,000
15,000
201020092008
ENROLLMENT(FTE)
2006 2007
14,81115,01114,92614,685
14,854
0
500
1,000
2,000
1,500
$2,500
201020092008
TOTAL REVENUES(in millions)
2006 2007
1,791
1,578
1,822 1,797
2,300Hospitals and Clinics$693.0 (31.3%)
Grants and Contracts$473.8 (21.4%)
MedicalProfessional Practice
$403.6 (18.2%)
Gifts and Trusts$91.5 (4.1%)
Auxiliary Enterprises$96.8 (4.4%)
Other Sources$26.6 (1.2%)
Investment Return$38.8 (1.7%)
Tuition and Fees$392.3 (17.7%)
OPERATING REVENUES – $2,216.4(in millions)
The past year provided a sharp and welcome contrast to the significant declines
of 2008-2009. The University of Miami’s endowment recovered a large portion
of the previous fiscal year’s losses. As of May 31, 2010, the Growth Pool
delivered a 17 percent total return, 3.8 percent better than the Total Portfolio
Benchmark, performing well on both an absolute and relative basis.
Report on the Endowment
3 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T
The beginning of the year was char-
acterized by unprecedented fiscal
and monetary stimulus worldwide.
While the stimulus was successful in
averting a synchronized depression,
the Euro crisis and concerns over
sovereign debt muted gains it was
intended to provide. Coupled with
the Federal Reserve position on
interest rates and the threat of
government fiscal legislation, the
economic climate proved challeng-
ing for active managers.
Market volatility during the year
provided opportunities for active
investment managers who viewed
it as a tool that allowed them to ac-
quire high-quality assets at attractive
prices. After 14 straight months of
market appreciation, April and May
saw significant profit-taking and “de-
risking” as hedge funds and other
large pools moved to safeguard
gains and avoid a second negative
return year. Fortunately this was not
a repeat of late 2008-2009, although
a number of days were reminiscent
of the worst part of the financial
meltdown. The Growth Pool’s broad
diversification, higher-than-average
liquidity, and skilled active-manager
pool all helped to produce excellent
returns during the year. In particular,
our investment managers focused on
purchasing securities of high-quality
companies at reasonable valuations.
The charts at top and center right
illustrate the Growth Pool’s outper-
formance against the custom bench-
mark for one, three, five, and ten
years, as well as the nominal value of
the endowment over one, five, ten,
and 15 years.
LOOKING TO THE FUTURE
While pricing in some markets is
cause for optimism, this view must
be balanced with the likelihood that
high volatility and major macroeco-
nomic issues may become a fact of
life rather than cycles of exceptional
events. In earlier periods, such as the
1990s, high volatility was associated
with below-average returns. Ironi-
cally, it is possible we are entering a
new period of high volatility accom-
panied by above-average market
returns. We are confident that the
University’s managers will be able
to exploit the often spectacular
misvaluations that volatility typically
creates. Many analysts believe that
most markets are reasonably priced
or even inexpensive, providing an
excellent starting point for the
new year.
The chart at bottom right details
the Growth Pool’s asset allocation as
of May 31, 2010. The policy targets
are reviewed annually by the Board
of Trustees’ Investments Committee,
which also reviews the pool’s perfor-
mance against a custom benchmark
and peer institutions. Individual
manager performance is reviewed on
a regular basis and all managers are
subject to the University’s rigid due
diligence process. The portfolio con-
tinues to be well positioned to deal
with the conditions that lie ahead.
John R. Shipley
Vice President of Finance
and Treasurer
U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 7
10 Year 3.1% 1.8% -0.8% 6.5% 2.6%
5 Year 3.1% 1.5% 0.3% 5.3% 2.5%
3 Year -4.7% -6.3% -8.7% 6.9% 1.9%
1 Year 17.0% 13.2% 21.0% 8.4% 2.8%
Time Period
Growth Pool Returns
(net of fees)
Benchmark Returns
TotalPortfolio
S&P 500
Barclay’s Aggregate Bond Index
CPI Increase
Rate
G R O W T H P O O L V S . K E Y I N D I C E S
Beginning Balance $538.6 $526.1 $465.2 $264.9
Return, including unrealized appreciation 86.7 75.5 142.5 386.8
Distributions to operations, etc.* (32.7) (152.1) (259.8) (338.1)
Gifts and other net additions 25.6 168.7 270.3 304.6
Ending Balance $618.2 $618.2 $618.2 $618.2
*This is pursuant to University policy, which is to distribute 5 percent of the three-year moving average of the corpus of most endowment accounts.
E N D O W M E N T G R O W T H A T M A R K E T (in millions)
OneYear
Five Years
Ten Years
Fifteen Years
Asset Class
U.S. Large/Mid Cap Equity 17.5 18.3
U.S. Small Cap Equity 5.0 5.3
International Equity 20.0 18.5
Emerging Markets Equity 2.5 3.5
Global Fixed Income 12.0 13.1
Hedge Funds 30.0 28.4
Private Equity 5.0 6.6
Real Assets (including real estate) 8.0 6.3
G R O W T H P O O L S T R A T E G I C A S S E T A L L O C A T I O N
Policy Target
May 2010
Allocation (%)
Asset Class
3 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 9
Independent Auditor’s Report
To the Board of Trustees
University of Miami
We have audited the accompanying statements of financial position of the University of Miami (the University) as of May 31, 2010 and
2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility
of the University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial state-
ments. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the University
as of May 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting
principles generally accepted in the United States of America.
Fort Lauderdale, Florida
August 27, 2010
McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs.
The two firms operate as separate legal entities in an alternate practice structure.
Member of RSM International network, a network of
independent accounting, tax and consulting firms.
May May 2010 2009
Assets Cashandcashequivalents $ 119.0 $ 126.7 Accountsandloansreceivable 359.0 337.4 Contributionsreceivable 99.0 101.1 Otherassets 52.1 52.0 Investments 766.3 713.7 Propertyandequipment 1,434.4 1,431.6 Trustsheldbyothers 52.0 48.6 Intangibleassets 100.3 101.2
TotalAssets $ 2,982.1 $ 2,912.3
Liabilities Accountspayableandaccruedexpenses $ 160.7 $ 147.2 Deferredrevenuesandotherdeposits 70.5 80.5 Accruedpostretirementbenefitcost 310.9 255.4 Otherliabilities 125.3 117.7 Actuarialliabilityofannuitiespayable 8.5 7.8 Reservesformedicalself-insurance 80.8 65.4 Governmentadvancesforstudentloans 23.0 22.7 Bondsandnotespayable 844.3 900.6
TotalLiabilities 1,624.0 1,597.3
NetAssets Unrestricted 830.0 788.6 Temporarilyrestricted 154.4 170.3 Permanentlyrestricted 373.7 356.1
TotalNetAssets 1,358.1 1,315.0
TotalLiabilitiesandNetAssets $ 2,982.1 $ 2,912.3
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
Statements of Financial PositionAsofMay31,2010and2009(inmillions)
4 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 1
May May 2010 2009
Changesinunrestrictednetassets Operatingactivities Operatingrevenues Tuitionandfees,net $ 392.3 $ 369.5 Grantsandcontracts 473.8 467.0 Medicalprofessionalpractice 403.6 372.6 Hospitalsandclinics 693.0 623.3 Giftsandtrusts 58.5 69.2 Netassetsreleasedfromrestrictions 33.0 17.3 Endowmentspendingdistribution 32.7 34.7 Investmentreturn 6.1 7.3 Auxiliaryenterprises,net 96.8 99.5 Othersources 26.6 31.2
Totaloperatingrevenues 2,216.4 2,091.6
Operatingexpenses Instruction 445.7 448.7 Research 208.8 202.5 Publicservice 168.8 154.2 Patientcare 965.0 927.9 Auxiliaryenterprises 138.4 141.3 Academicsupport 131.9 130.3 Studentservices 44.1 44.4 Institutionalsupport 101.2 92.2
Totaloperatingexpenses 2,203.9 2,141.5
Changeinunrestrictednetassetsfromoperatingactivities 12.5 (49.9)
Non-Operatingactivities Endowment,annuityandotherinvestmentreturn 66.8 (306.4) Giftsandtrusts 8.3 6.1 Netlossonsale,disposal,andexchangeofpropertyandequipment (1.7) (1.1) Othersources – (.3) Netassetsreleasedfromrestrictions 9.2 16.3 Transfertopermanentlyrestrictednetassets (.4) (1.1)
Changeinunrestrictednetassetsfromnon-operatingactivities 82.2 (286.5)
Postretirementbenefitsrelatedchangesotherthannetperiodicbenefitcost (53.3) (111.8)
Increase(decrease)inunrestrictednetassets 41.4 (448.2)
Changesintemporarilyrestrictednetassets Endowment,annuityandotherinvestmentreturn 1.5 (3.0) Giftsandtrusts 26.6 13.4 Changesinvalueofannuitiespayableandtrustsheldbyothers (1.1) (2.0) Netassetsreleasedfromrestrictions (42.2) (33.6) Transfertopermanentlyrestrictednetassets (.7) –
Decreaseintemporarilyrestrictednetassets (15.9) (25.2)
Changesinpermanentlyrestrictednetassets Endowment,annuityandotherinvestmentreturn 4.4 2.3 Giftsandtrusts 12.1 14.0 Transferfromunrestrictedandtemporarilyrestrictednetassets 1.1 1.1
Increaseinpermanentlyrestrictednetassets 17.6 17.4
Increase(decrease)intotalnetassets 43.1 (456.0)NetAssets Beginningofyear 1,315.0 1,771.0
Endofyear $ 1,358.1 $ 1,315.0
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
Statements of Activities
FortheyearsendedMay31,2010and2009
(inmillions)
May May 2010 2009
Cashflowsfromoperatingactivities Increase(decrease)intotalnetassets $ 43.1 $ (456.0) Adjustmentstoreconcileincrease(decrease)intotalnetassetstonetcashprovidedby(usedin)operatingactivities Netrealizedandunrealized(gains)lossesoninvestmentsandotherassets (102.2) 289.7 Giftsandtrusts (50.0) (26.6) Depreciationandamortization 124.5 110.2 Provisionfordoubtfulaccounts 97.1 81.0 Netlossonsale,disposal,andexchangeofpropertyandequipment 1.7 1.1 Presentvalueadjustmentonannuitiespayableandtrustsheldbyothers 1.1 2.0 Amortizationofbondpremiums (2.4) (1.0) Changeinoperatingassetsandliabilities Increasein Accountsandloansreceivable (110.2) (139.5) Goodwill (1.7) – Otherassets (.5) (5.2) Increase(decrease)in Accountspayableandaccruedexpenses 13.5 (14.1) Deferredrevenues,annuitiespayableandotherliabilities (3.3) (3.1) Accruedpostretirementbenefitcost 55.5 132.3 Reservesformedicalself-insurance 15.4 8.0 Governmentadvancesforstudentloans .3 (.2)
Netcashprovidedby(usedin)operatingactivities 81.9 (21.4)
Cashflowsfrominvestingactivities Purchasesofinvestments (195.1) (169.5) Proceedsfromthesalesandmaturitiesofinvestmentsandsalesofotherassets 253.3 375.2 Capitalexpendituresforpropertyandequipment (119.5) (223.4) Studentandsharedappreciationmortgageloans: Newloansmade (13.3) (19.9) Principalcollected 4.8 6.9
Netcashusedininvestingactivities (69.8) (30.7)
Cashflowsfromfinancingactivities Giftsforplantexpansionandendowment 34.1 23.3 Proceedsfromtheissuanceofdebt 45.4 55.0 Paymentstoretirebondsandnotespayable (99.3) (43.9)
Netcash(usedin)providedbyfinancingactivities (19.8) 34.4
Cashandcashequivalents Netdecrease (7.7) (17.7) Beginningofyear 126.7 144.4
Endofyear $ 119.0 $ 126.7
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
Statements of Cash FlowsFortheyearsendedMay31,2010and2009(inmillions)
4 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 3
Notes to Financial
StatementsMay31,2010and2009
Notes to Financial StatementsMay31,2010and2009
1. OrganizationTheUniversityofMiami(theUniversity)isaprivatenot-for-profitinstitutionlocatedinSouthFlorida.Foundedin1925,theUniversityownsandoperateseducationalandresearchfacilitiesaswellasahealthcaresystem.Itsmissionistoeducateandnurturestudents,tocreateknowledgethroughinnovativeresearchprograms,andtoprovideservicetoourcommunityandbeyondbypursuingexcellenceinhealthcare. ThesefinancialstatementsincludetheaccountsofallentitiesinwhichtheUniversityhasasignificantfinancialinterest,andoverwhichtheUniversityhascontrol,includingitshospitalsandclinics.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedinthepreparationofthesestatements.
2. SummaryofSignificantAccountingPoliciesandReportingPractices
BasisofPresentationThefinancialstatementsoftheUniversity,includingitshospitalsandclinics,havebeenpreparedontheaccrualbasisofaccountingandinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericafornot-for-profitorganizations. Thethreenetassetcategoriesasreflectedintheaccompanyingfinancialstatementsareasfollows:
Unrestricted-Netassetswhicharefreeofdonor-imposedrestrictions.ItincludestheUniversity’sinvestmentinpropertyandequipmentandamountsdesignatedbymanagementforsupportofoperations,programs,andfacilitiesexpansion.TheUni-versityhasdeterminedthatanydonor-imposedrestrictionsforcurrentordevelopingprogramsandactivitiesaregenerallymetwithintheoperatingcycleoftheUniversityand,therefore,theUniversity’spolicyistorecordthesenetassetsasunrestricted.Thiscategoryincludesallrevenues,expenses,gainsandlossesthatarenotchangesinper-manentlyortemporarilyrestrictednetassets.Italsoincludesrealizedandunrealizedgainsonendowmentandotherlong-terminvestments,eventhoughtheUniversity’spolicyistoreinvestsuchearningsforfuturegrowthandtousetheseearningsinac-cordancewithdonorstipulationsastotheoriginalgiftcorpus. Unrestrictednon-operatingactivitiesreflecttransactionsofalong-terminvestmentorcapitalnatureincludingnetrealizedandunrealizedinvestmentgainsnotusedtosup-portcurrentoperationsaswellascontributionstobeusedforfacilitiesandequipment.TemporarilyRestricted-NetassetswhoseusebytheUniversityislimitedbydonor-imposedstipulationsthateitherexpirewiththepassageoftimeorthatcanbefulfilledorremovedbyactionsoftheUniversitypursuanttothosestipulations.Thesenetassetsareavailableforprogrampurposes,i.e.,education,research,publicservice,andschol-arships,aswellasforbuildingsandequipment.PermanentlyRestricted-NetassetswhoseusebytheUniversityislimitedbydonor-imposedstipulationsthatneitherexpirewiththepassageoftimenorcanbefulfilledorotherwiseremovedbyactionsoftheUniversity.Thesenetassetsareinvestedinperpetuity,theincomefromwhichisexpendedforprogrampurposes,i.e.,education,research,publicservice,andscholarships.
UseofEstimatesThepreparationofthesefinancialstatementsrequiresmanagementoftheUniversitytomakeanumberofestimatesandassumptionsrelatingtothereportedamountsofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefi-nancialstatementsandthereportedamountsofrevenuesandexpensesduringtheperiod.Actualresultscoulddifferfromthoseestimates.
IncomeTaxesTheUniversityisexemptfromfederalincometaxesunderSection501(c)(3)oftheInternalRevenueCode.Accordingly,noprovisionforincometaxesismadeinthefinancialstatements.
CashEquivalentsAllhighlyliquidinvestmentswithamaturityofthreemonthsorlesswhenpurchasedareconsideredtobecashequivalents.
InvestmentsInvestmentsarereportedatfairvalue.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketpartici-pantsatthemeasurementdate.Seenote5forfairvaluemeasurements. TheUniversity’sinvestmentsincludevarioustypesofinvestmentsecuritieswhichareexposedtovariousriskssuchasinterestrate,market,andcreditrisk.Duetothelevelofriskassociatedwithcertaininvestmentsecuritiesandthelevelofuncertaintyrelatedtochangesinthevalueofinvestmentsecurities,itispossiblethatchangesinrisksintheneartermcouldmateriallyaffecttheamountsreportedinthefinancialstatements.
RevenueRecognitionTuitionandfeesrevenueisreportedinthefiscalyearinwhicheducationalprogramsareprimarilyconducted.Scholarshipsandfellowshipsawardedtostudentsfortuition,fees,androomandboardarebaseduponneedandmerit,andarenettedagainsttuitionandfees,andauxiliaryenterprisesrevenueinthestatementsofactivitiesasfollows(inmillions): 2010 2009
Scholarshipsandfellowships: Institutionallyfunded $ 133.4 $ 130.1 Externallyfunded-giftsandgrants 10.5 10.0
Totalamountnettedagainst tuitionandfeesrevenue $ 143.9 $ 140.1
Amountnettedagainstauxiliaryenterprisesrevenue $ 10.3 $ 10.5
Giftsofcash,propertyandmarketablesecuritiesarerecordedasrevenuewhenreceived.Unconditionalpledges(note4)arerecognizedasrevenuebasedontheestimatedpres-entvalueofthefuturecashflows,netofallowances,whenthecommitmentisreceived.Pledgesmadeandcollectedinthesamereportingperiodarerecordedwhenreceivedintheappropriatenetassetcategory.Conditionalpledgesarerecordedasrevenueonlywhendonorstipulationsaresubstantiallymet. Grantsandcontractsrevenueisrecognizedasexpensesareincurred. Medicalprofessionalpractice,andhospitalsandclinicsrevenue(patientcarerevenue)arerecordednetofcontractualadjustments,discountsandallowances,andincludeamountsestimatedbymanagementtobepaidbythird-partygovernmentalandprivatepayors. Revenuereceivedbeforeitisearnedisdeferred.
AnnuitiesPayableandTrustsHeldbyOthersCertaingiftannuities,charitableleadandremainderannuitytrustagreementshavebeenenteredintowithdonors.AssetsheldundertheseagreementsarevaluedatfairvaluebasedoneitherthepresentvalueofexpectedcashflowsorthevalueoftheUniversity’sshareoftheunderlyingassets.Theseassetsareincludedintrustsheldbyothersonthestatementsoffinancialposition,exceptforgiftannuitieswhichareincludedininvestments.Giftannuitiesincludedininvestmentstotaled$17.3and$17.2millionatMay31,2010and2009,respectively.Generally,revenuefromgiftannuitiesandtrustsisrecognizedatthedatetheagreementsareestablishednetofliabilitiesforthepresentvalueoftheestimatedfuturepaymentstodonorsand/orotherbeneficiaries. Theliabilitiesareadjustedduringthetermofthetrustsforchangesinthevalueoftheassets,accretionofthediscount,andotherchangesintheestimatesoffuturebenefits. TheUniversityisalsothebeneficiaryofcertainperpetualtrustswhicharealsoincludedintrustsheldbyothersonthestatementsoffinancialposition.Thefairvalueofthetrusts,whicharebasedoneitherthepresentvalueoftheestimatedfuturecashreceiptsorthefairvalueoftheassetsheldinthetrust,arerecognizedasassetsandgiftandtrustrevenueasofthedatetheUniversityisnotifiedoftheestablishmentofthetrust.Distributionsfromthetrustsarerecordedasgiftandtrustrevenue,andthecarryingvalueoftheassetsisadjustedforchangesinfairvalue.
MedicalSchoolFacultyphysicians,inadditiontoteachingandconductingresearch,engageinthepracticeofmedicine,whichgeneratespatientcarerevenue.Revenuesandexpenses,includingcom-pensationandadministrativeoperationsfromthepracticeofmedicine,arereflectedasUniversityrevenuesandexpenses.Thenetassetsofpatientcareactivitiesaredesignatedformedicalschoolprograms. TheUniversityandthePublicHealthTrustofMiami-DadeCounty,Florida(PHT),ownerandoperatorofJacksonMemorialHospital(JMH),haveenteredintoanaffiliationagree-mentrelatedtotheirindependentmissionswithinthedesignatedlandandfacilitiesthatcomprisetheJacksonMemorialMedicalCenter.Pursuanttothatagreement,thePHTpro-videsclinicalfacilitiesfortheteachingoftheUniversity’smedicalstudents.Medicaleduca-tionofitsstudentsisthesoleresponsibilityoftheUniversity.Inaddition,theUniversityhasagreedtopermititsfacultytoapplyforprivilegesatJMHtotrainandsuperviseJMHhousestaff(interns,residents,andfellows)andtotreathospitalpatientsintheircapacityasmembersofJMH’sattendingmedicalstaff.Allsuchtreatmentandtrainingisthesolere-sponsibilityofthePHTinitscapacityasthelegalownerandoperatoroftheJacksonHealthSystem’spublichospitalsandclinicsanditsstatutoryteachinghospital(JMH).Theaffilia-tionagreementprovidesthetermsforthemutualreimbursementofservicesprovided.
InsuranceTheUniversitymanagespropertyandliabilityrisksthroughacombinationofcommercialinsurancepoliciesandself-insurance. TheUniversityisself-insuredformedicalprofessionalliabilityandhospitalliabilityandmaintainscommercialexcesslosscoveragewithinspecifiedlimits.Provisionsformedicalprofessionalliabilityclaimsandrelatedcostsarebasedonseveralfactors,includinganannualactuarialstudyusingadiscountrateof3%asofMay31,2010and2009.
PropertyandEquipmentPropertyandequipmentisstatedatcostlessaccumulateddepreciationandamortization.Depreciationiscomputedonastraight-linebasisovertheestimatedusefullivesofthere-latedassets.Depreciationisnotrecordedonlandandartobjects.Leaseholdimprovementsareamortizedoverthelesseroftheleasetermortheusefullife.
FacilitiesandAdministrativeCostRecoveryTheFederalgovernmentreimbursestheUniversityforfacilitiesandadministrativecostsincurredinconnectionwithresearchgrantsandcontractsbasedonpredeterminedratesthrough2011.Facilitiesandadministrativecostrecoveryfromgovernmentandprivatesourcesincludedingrantandcontractrevenuestotaled$65.7and$60.1millionduringtheyearsendedMay31,2010and2009,respectively.
FacilitiesExpensesFacilitiesrelatedexpenseshavebeenallocatedacrossapplicablefunctionalexpensecat-egoriesinthestatementsofactivitiesbasedonspaceusage(inmillions): 2010 2009
Depreciationandamortization $ 124.5 $ 110.2Interest 38.3 39.3Operationsandmaintenance 110.8 118.0
Total $ 273.6 $ 267.5
AccountingChangeDuetoNewPronouncementsInJuly2009,theFinancialAccountingStandardsBoard(FASB)issuedtheFASBAccountingStandardsCodification(ASC)asthesinglesourceofauthoritativenon-governmentalGAAP.TheCodificationiseffectiveforinterimandannualperiodsendingafterSeptember15,2009.AllexistingaccountingstandardsweresupersededasdescribedinASC105(formerlyStatementofFinancialAccountingStandards(SFAS)No.168,TheFASBAccountingCodifi-cationandtheHierarchyofGenerallyAcceptedAccountingPrinciples).Allotheraccount-ingliteraturenotincludedintheCodificationisnon-authoritative.TheUniversityadoptedFASBCodificationforthefiscalyearendedMay31,2010. InMarch2008,theFASBissuedASC815-10(formerlySFASNo.161,DisclosuresaboutDerivativeInstrumentsandHedgingActivities–anamendmentofSFASNo.133).ThestandardamendsandexpandsthedisclosurerequirementsofSFASNo.133withtheintenttoprovideusersoffinancialstatementswithanenhancedunderstandingofhowandwhyanentityusesderivativeinstruments,howderivativeinstrumentsandrelatedhedgeditemsareaccountedforunderSFASNo.133anditsrelatedinterpretations,andhowderivativeinstrumentsandrelatedhedgeditemsaffectanentity’sfinancialposition,financialperformance,andcashflows.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InDecember2008,theFASBissuedASC715(formerlySFASNo.132(R)-1Employers’DisclosuresaboutPensionsandOtherPostretirementBenefits-anamendmentofFASBStatementNo.132).Thisstandardprovidesguidanceonanemployer’sdisclosuresaboutplanassetsofadefinedbenefitpensionandotherpostretirementbenefits.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InApril2009,theFASBissuedASC820(formerlyStaffPosition157-4,DeterminingFairValueWhentheVolumeandLevelofActivityfortheAssetorLiabilityHaveSignificantlyDecreasedandIdentifyingTransactionsThatAreNotOrderly).Thestandardexpandsdis-closuresandrequiresthatformajorcategoriesofdebtandequitysecurities,thefairvaluehierarchytablebedeterminedonthebasisofthenatureandrisksoftheinvestments.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InMay2009,theFASBissuedASC855-10(formerlySFASNo.165,SubsequentEvents),furtherupdatedinFebruary2010throughUpdateNo.2010-09–SubsequentEvents–AmendmentstoCertainRecognitionandDisclosureRequirements.Thestandardasamendedestablishesaccountingrecognitionanddisclosurerequirementsofeventsthatoccurafterthestatementoffinancialpositiondatebutpriortotheissuanceoffinancialstatements.TheUniversityhasevaluatedsubsequenteventsthroughAugust27,2010not-ingnoimpactontheUniversity’sfinancialstatements. InSeptember2009,theFASBissuedASC740(UpdateNo.2009-06,IncomeTaxes-ImplementationGuidanceonAccountingStandardsforUncertaintyinIncomeTaxesandDisclosureAmendmentsforNonpublicEntities:AnInterpretationofSFASNo.109).Thestandardprovidespracticalimplementationguidanceonuncertaintaxpositionstakenbyanentity.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010.TheUniversity’smanagementanalyzeditstaxpositionsanddeterminedthatnoincometaxadjustmentrelatedtotheadoptionofthisstandardisnecessary.
ImpairmentofLong-LivedAssetsASC360(formerlySFASNo.144,AccountingforImpairmentorDisposalofLong-LivedAssets)requiresthatlong-livedassetstobeheldbyanentity,includingintangibleassets,bereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable.NoassetimpairmentswererecordedbytheUniversityinfiscalyears2010or2009.
ReclassificationsCertainamountsintheprioryear’sfinancialstatementshavebeenreclassifiedtoconformtothecurrentyears’presentation.
2.SummaryofSignificantAccountingPoliciesandReportingPractices(continued)
4 4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 5
Notes to Financial
StatementsMay31,2010and2009
Notes to Financial StatementsMay31,2010and2009
3.AccountsandLoansReceivableAtMay31,accountsandloansreceivableconsistofthefollowing(inmillions): 2010 2009
Accountsandloansreceivable,net: Patientcare $ 192.6 $ 172.8 Grants,contractsandother 80.8 87.4 Sharedappreciationmortgages 50.6 41.5 Student 5.6 5.0Studentloans,net 29.4 30.7
Total $ 359.0 $ 337.4
Accountsandloansreceivable,andstudentloansreceivablearenetofallowancesfordoubtfulaccountsof$113.7and$1.1million,respectively,for2010and$86.7and$.9mil-lion,respectively,for2009. Sharedappreciationmortgageswereprovidedaspartofaprogramtoattractandretainexcellentfacultyandsenioradministratorsthroughhomemortgagefinancingassistance.Sharedappreciationnotesamountingto$53.1millionand$44.0million(netof$2.5millionallowancefordoubtfulaccounts)atMay31,2010and2009,respectively,fromUniversityfacultyandsenioradministratorsarecollateralizedbysecondmortgagesonresidentialproperties.TheprogramwassuspendedeffectiveDecember31,2008withlimitedexceptions. Studentloansaremadeprimarilypursuanttofederalprogramsandavailabilityoffunding.Therelatedreceivableshavesignificantgovernmentrestrictionsastomarketabil-ity,interestrates,andrepaymentterms.Theirfairvalueisnotreadilydeterminable.
4.ContributionsReceivable(Pledges)Unconditionalpledgesarerecordedatthepresentvalueoftheirfuturecashflowsusingadiscountratecommensuratewiththeriskinvolved.TheyareexpectedtoberealizedinthefollowingperiodsatMay31,(inmillions): 2010 2009
Inoneyearorless $ 28.5 $ 28.8Betweenoneyearandfiveyears 58.5 59.1Morethanfiveyears 41.1 53.6
128.1 141.5Discountof$18.6andallowanceof$10.5for2010and$28.8and$11.6for2009,respectively (29.1) (40.4)
Total $ 99.0 $ 101.1
5.InvestmentsThefairmarketvalueofinvestmentsatMay31,2010and2009amountedto$766.3and$713.7million,withacostbasisof$739.0and$753.0million,respectively.Shortterminvest-mentsconsistprimarilyofcommercialpaperwithmaturitiesinexcessofthreemonths.Amountsincludedinlimitedpartnershipsandlimitedliabilitycompanies,other,representalternativeinvestmentswhicharevaluedatthenetassetvalueoftheentitiesasdeter-minedbythefund.Themajorityofinvestmentsarecombinedininvestmentpoolswitheachindividualaccountsubscribingtoordisposingofsharesonthebasisofthefairvaluepershare.AtMay31,2010and2009,thefairvalueoftheUniversity’sprimaryinvestmentpool(theGrowthPool)amountedto$695.2and$616.0million,withacostbasisof$668.5and$651.8million,respectively.TheGrowthPoolismanagedbymultipleinvestmentmanagerswithassetallocationpertheUniversity’sinvestmentpolicy.Thetotalnetunrealizedgain(loss)oninvestmentsfortheyearendedMay31,2010and2009was$65.3and($160.4)mil-lion,respectively.
FairValueofInvestmentsFASBASC820(formerlySFASNo.157,FairValueMeasurement),providestheframeworkformeasuringfairvalue.Thatframeworkprovidesafairvaluehierarchythatprioritizestheinputstovaluationtechniquesusedtomeasurefairvalue.Thehierarchygivesthehighestprioritytounadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities(Level1measurements)andthelowestprioritytounobservableinputs(Level3measurements).ThefollowingdescribesthehierarchyofinputsusedtomeasurefairvalueandtheprimaryvaluationmethodologiesusedbytheUniversityforinvestmentsmeasuredatfairvalue:
Level1—Valuationsforassetsandliabilitiestradedinactiveexchangemarkets,suchastheNewYorkStockExchange.Level1alsoincludesU.S.Treasuryandfederalagencysecuritiesandfederalagencymortgage-backedsecurities,whicharetradedbydealersorbrokersinactivemarkets.Inputstothevaluationmethodologiesincludeunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthatareaccessibleatthemeasurementdate.Level2—Valuationsforassetstradedinlessactivedealerorbrokermarkets.Inputstothevaluationmethodologiesincludequotedpricesfromthirdpartypricingservicesforidenticalorsimilarassetsinactiveand/orinactivemarkets;inputsotherthanquotedpricesthatareobservablefortheassetorliability;orinputsthatarederivedprinci-pallyfromorcorroboratedbyobservablemarketdatabycorrelationorothermeans.Level3—Valuationsforassetsthatarederivedfromothervaluationmethodologies,includingoptionpricingmodels,discountedcashflowmodelsandsimilartechniques,andnotbasedonmarketexchange,dealer,orbrokertradedtransactions.Inputstothevaluationmethodologiesincorporatecertainassumptionsandprojectionsindetermin-ingthefairvalueassignedtosuchassets.
Theassetorliability’sfairvaluehierarchyisbasedonthelowestlevelofanyinputthatissignificanttothefairvaluemeasurement.TheUniversityutilizesvaluationtechniquesthatmaximizetheuseofobservableinputsandminimizetheuseofunobservableinputs.TherehavebeennochangesinthemethodologiesusedatMay31,2010. Thevaluationmethodologiesusedforotherinvestmentinstrumentsmeasuredatfairvalueconsistedof:
VariableRateSwapAgreementTheUniversityenteredintoa$20.0millioninterestrateswapagreementinfiscal2005tomanagethemarketriskassociatedwithoutstandingvariable-ratedebt.Partiestothein-terestrateswapagreementaresubjecttomarketriskforchangesininterestratesaswellasriskofcreditlossintheeventofnonperformancebythecounterparty.TheUniversitydealsonlywithhighqualitycounterpartiesthatmeetratingcriteriaforfinancialstabilityandcreditworthiness.Theestimatedcumulativefairvaluelossoftheswapagreementwas$2.8and$1.9millionfortheyearsendedMay31,2010and2009,respectivelyandisincludedinotherinvestmentsinthetablebelow.Changesinthefairvalue,whichforfiscal2010and2009amountedtoanunrealizedlossof$.9and$.8million,respectively,arerecordedasnon-operatingactivitiesinthestatementsofactivities.
AtMay31,2010
Total Level1 Level2 Level3
Shortterminvestments $ 18.7 $ - $ 18.7 $ -Debtsecurities: U.S.Treasuryandother governmentagencies 5.0 5.0 - - U.S.andpoliticalsubdivisions ofthestates 5.1 - 5.1 -Publiclytradedstocks: Large-midcap 50.0 50.0 - - Smallcap 19.3 19.3 - -Mutualfunds: Equities: Emergingmarkets 6.1 - 6.1 - International 1.6 - 1.6 - Large-midcap 6.9 - 6.9 - Smallcap 18.9 - 18.9 - FixedIncome 61.7 - 61.7 - Balanced 12.0 - 4.6 7.4Limitedpartnershipsandlimitedliabilitycompanies: Equities: Emergingmarkets 18.1 - 18.1 - International 128.8 - 128.8 - Large-midcap 76.5 - 76.5 - Fixedincome 86.6 - 37.0 49.6 Privateequity 45.6 - - 45.6 Other: Eventarbitrage 66.3 - - 66.3 Long-shortcomposite 81.6 - 48.1 33.5 Realassetsrelatedsecurities 26.8 - 25.1 1.7 Realestate 16.9 - - 16.9Otherinvestments 13.8 13.5 .3 -
Total $ 766.3 $ 87.8 $ 457.5 $ 221.0
AtMay31,2009
Total Level1 Level2 Level3
Shortterminvestments $ 44.0 $ - $ 44.0 $ -U.S.governmentandagencyobligations 7.4 2.4 5.0 -Corporatebonds .6 - .6 -Publiclytradedstocks 52.5 52.5 - -Mutualfunds: Equities 26.2 - 26.2 - FixedIncome 54.5 - 54.5 - Balanced 11.7 - 5.3 6.4Limitedpartnershipsandlimitedliabilitycompanies: Equities 185.4 - 185.4 - Fixedincome 93.8 - 52.3 41.5 Privateequity 37.6 - - 37.6 Other 181.7 - 68.4 113.3Otherinvestments 18.3 18.8 (.5) -
Total $ 713.7 $ 73.7 $ 441.2 $ 198.8
5.Investments(continued)FairValueofInvestments(continued)
ThefollowingtablessetforthasummaryofchangesinthefairvalueoftheUniversity’slevel3investments.
FortheyearendedMay31,2010(inmillions): Purchases,sales, Transfersin issuancesand NetIncome and/orout May31,2009 settlements,net Reinvested Realized Unrealized oflevel3 May31,2010
Mutualfunds-balanced $ 6.4 $ (.1) $ .3 $ - $ .8 $ - $ 7.4Limitedpartnershipsandlimitedliabilitycompanies: Fixedincome 41.5 - 1.8 - 6.3 - 49.6 Privateequity 37.6 1.9 .3 2.8 3.0 - 45.6 Other: Eventarbitrage 52.5 - .3 1.4 12.1 - 66.3 Long-shortcomposite 41.7 (12.2) (.5) 4.0 .1 .4 33.5 Realassetsrelatedsecurities 2.4 (.5) - (.3) .1 - 1.7 Realestate 16.7 2.0 .4 .2 (2.4) - 16.9
Total $ 198.8 $ (8.9) $ 2.6 $ 8.1 $ 20.0 $ .4 $ 221.0
Thefollowingtablessetforthbylevel,withinthefairvaluehierarchy,theUniversity’sinvestmentsatfairvalue(inmillions):
Totalnetgains(losses)includedinchangesinnetassets
4 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 7
Notes to Financial
StatementsMay31,2010and2009
Notes to Financial StatementsMay31,2010and2009
FortheyearendedMay31,2009(inmillions): Purchases,sales, Transfersin issuancesand NetIncome and/orout May31,2008 settlements,net Reinvested Realized Unrealized oflevel3 May31,2009
Mutualfunds $ 8.2 $ (.1) $ .2 $ (.1) $ (1.8) $ - $ 6.4Limitedpartnershipsandlimitedliabilitycompanies 204.2 19.7 4.9 1.3 (37.7) - 192.4
Total $ 212.4 $ 19.6 $ 5.1 $ 1.2 $ (39.5) $ - $ 198.8
9.EndowmentInAugust2008,theFASBissuedASC958-205-50(formerlyFASBStaffPosition117-1,EndowmentsofNot-for-ProfitOrganizations:NetAssetClassificationofFundsSubjecttoanEnactedVersionoftheUniformPrudentManagementofInstitutionalFundsAct,andEnhancedDisclosuresforAllEndowmentFunds).Thisstandardprovidesguidanceonthenetassetclassificationofdonor-restrictedendowmentfundsforanonprofitorganizationthatissubjecttoanenactedversionoftheUniformPrudentManagementofInstitutionalFundsActof2006(UPMIFA).TheStateofFloridahasnotyetenactedaversionofUPMIFA.ShouldtheStateofFloridaenactaversionofUPMIFAinafutureperiod,theBoardofTrusteesoftheUniversity(theBoard)willneedtointerprettherelevantlaw.Basedonthisinterpretation,thisstandardcouldrequiresignificantreclassificationsofsomeportionofdonor-restrictedendowmentfunds,fromunrestrictedtotemporarilyrestrictednetassets.Thisstandardalsorequiresadditionaldisclosuresaboutanorganization’sendowmentfunds,whetherornottheorganizationissubjecttoUPMIFA.Thedisclosurerequirementsofthisstandardarereflectedbelow.
InterpretationofRelevantLawAsdiscussedabove,theStateofFloridahasnotenactedUPMIFA.TheBoardhasinterpretedthecurrentlaw,UniformManagementofInstitutionalFundsAct(UMIFA)asrequiringpreser-vationofthefairvalueoftheoriginalgiftasofthegiftdate,absentexplicitdonorstipulationstothecontrary.Asaresultofthisinterpretation,theUniversityclassifiesaspermanentlyrestrictednetassets(a)theoriginalvalueofgiftsdonatedwherethedonorhasstipulatedthattheprincipalistobemaintainedinperpetuitywithonlytheincomefromthegifttobeexpended,(b)theoriginalvalueofsubsequentsimilartypegifts,and(c)accumulationstothefundmadeinaccordancewiththedirectionoftheapplicabledonorgiftinstrument.Endowmentsareclassifiedastemporarilyrestrictedwherethedonorhasstipulatedthattheprincipalofthegiftmaybereleasedfrominviolabilitytopermitallorpartoftheprincipaltobeexpended,andasunrestrictedendowmentswheretheBoard,ratherthanadonor,decidestoretainandinvesttheprincipalwithonlytheincomeavailabletobeexpended.TheBoardhastherightatanytimetoexpendtheprincipalofunrestrictedendowments.
SpendingPolicyTheUniversity’sendowmentspendingdistributionpolicyinsupportofitsprogramsdistrib-utesfivepercentofthethree-yearmovingaverageofthefairmarketvalueoftheendow-mentinvestmentpool.NewendowmentsmustbereceivedpriortoDecember31inordertoactivatethespendingdistributionforthenextfiscalyear.Inaddition,nodistributionismadefromanendowmentuntilitsfundingreaches,byDecember31,thelevelstipulatedbypolicy.Further,endowmentstoestablishChairsandProfessorshipshaveanadditionaldelayofoneyearbeforedistributionsaremade.
ReturnObjectivesandRiskParametersTheUniversityhasadoptedinvestmentandspendingpoliciestoprotectthepurchasingpoweroftheendowmentandtominimizetheeffectofcapitalmarketfluctuationsonoperatingbudgets. UndertheGrowthPoolpolicyfortheUniversity’sprimaryinvestmentpool(theGrowthPool),asapprovedbytheBoard,theintentistoachievearateofreturnequaltoorgreaterthantherespectivebenchmark,whileassumingamoderatelevelofrisk.Tosatisfyitslong-termrate-of-returnobjectives,theUniversityreliesonatotalreturnstrategyinwhichin-vestmentreturnsareachievedthroughbothcapitalappreciation(realizedandunrealized)andcurrentyield(interestanddividends).TheUniversitytargetsadiversifiedassetalloca-tionthatplacesagreateremphasisonequitybasedinvestmentstoachieveitslong-termreturnobjectiveswithinprudentriskconstraints.Thecurrentlong-termreturnobjectiveistoearnareturnofatleasttheConsumerPriceIndexplus5%,netoffees.Actualreturnsinanygivenyearmayvaryfromthisamount.
Endowmentnetassetsconsistofthefollowing(inmillions): Temporarily Permanently Unrestricted Restricted Restricted Total
AsofMay31,2009: Donorrestricted endowmentfunds $ 83.9 $ 29.1 $ 301.2 $ 414.2 Quasiendowmentfunds 124.4 - - 124.4
Total $ 208.3 $ 29.1 $ 301.2 $ 538.6
AsofMay31,2010: Donorrestricted endowmentfunds $ 128.6 $ 29.3 $ 312.7 $ 470.6 Quasiendowmentfunds 147.6 - - 147.6
Total $ 276.2 $ 29.3 $ 312.7 $ 618.2
Donorrestrictedendowmentfundsincludedinunrestrictedendowmentnetassetsrep-resentstheunappropriatedappreciationofendowmentfunds,netofdeficienciesinthemarketvalueofcertainendowmentrelatedassetswhichfellbelowthedonorrequiredleveltoretainfundsinperpetuity.AtMay31,2010and2009,thisdeficiencyamountedto$14.1and$28.4million,respectively,andresultedfromunfavorablemarketfluctuationsthatoccurredshortlyaftertheinvestmentofnewpermanentlyrestrictedcontributions,aswellascontinuedappropriationsforcertainprogramsthatwasdeemedprudent. Quasiendowmentfundsareresourcessegregatedforlongterminvestmentandin-cludegainsandlossesonunrestrictedinvestments,andotherresourcesdesignatedbytheBoardofTrusteesforfutureprogramsandoperations. ChangesinendowmentnetassetsforthefiscalyearsendedMay31,2010and2009consistof(inmillions): Temporarily Permanently Unrestricted Restricted Restricted Total
Balance,May31,2008 $ 419.2 $ 29.2 $ 287.8 $ 736.2 Investmentreturn Investmentincome 12.9 - - 12.9 Netdepreciation (realizedandunrealized) (196.7) - - (196.7)
Totalinvestmentreturn (183.8) - - (183.8) Giftsandtrusts - .2 12.3 12.5 Endowmentspending distributionforprograms (34.7) - - (34.7) Transferstocreatequasi endowmentfunds 3.5 - - 3.5 Other 4.1 (.3) 1.1 4.9
Balance,May31,2009 208.3 29.1 301.2 538.6
Investmentreturn Investmentincome 5.5 - (.3) 5.2 Netappreciation (realizedandunrealized) 81.5 - - 81.5
Totalinvestmentreturn 87.0 - (.3) 86.7 GiftsandTrusts - .1 10.7 10.8 Endowmentspending distributionforprograms (32.7) - - (32.7) Transferstocreatequasi endowmentfunds 9.4 - - 9.4 Other 4.2 .1 1.1 5.4
Balance,May31,2010 $ 276.2 $ 29.3 $ 312.7 $ 618.2
Totalnetgains(losses)includedinchangesinnetassets
ThetotalLevel3unrealizedgains(losses)fortheperiodsrelatingtothoseinvestmentsstillheldatMay31,2010and2009total$20.0and($39.5)million,respectively,andarereflectedaspartofinvestmentreturninthestatementofactivities.TheUniversityisobligatedundercertaininvestmentfundagreementstoperiodicallyad-vanceadditionalfundinguptospecifiedlevels.AtMay31,2010,theUniversityhadfutureinvestmentfundingcommitmentsof$50.5million.
InvestmentReturnTheUniversity’sendowmentspendingdistributionpolicyistodistributefivepercentofthethree-yearmovingaveragefairmarketvalueoftheendowmentinvestmentpool.Thispolicyisdesignedtoprotectthepurchasingpoweroftheendowmentandtominimizetheeffectofcapitalmarketfluctuationsonoperatingbudgets. Thecomponentsoftotalinvestmentreturnasreflectedinthestatementsofactivitiesareasfollows(inmillions): 2010 2009
Operating: Endowmentspendingdistribution $ 32.7 $ 34.7 Investmentreturn 6.1 7.3
Totaloperatinginvestmentreturn 38.8 42.0
Non-Operating: Unrestricted Endowmentinterestanddividendincome,realized andunrealizedgains(losses),netofendowment spendingdistribution 54.4 (218.5) Othernetrealizedandunrealizedgains(losses) 12.4 (87.9)
Totalunrestrictednon-operatinginvestmentreturn 66.8 (306.4) Temporarilyrestrictedinvestmentreturn 1.5 (3.0) Permanentlyrestrictedinvestmentreturn 4.4 2.3
Totalnon-operatinginvestmentreturn 72.7 (307.1)
Totalinvestmentreturn $ 111.5 $ (265.1)
6.FairValueofFinancialInstrumentsOtherThanInvestmentsThecarryingamountsofcashandcashequivalents,patient,studentandotherreceivables,accountspayableandaccruedexpensesapproximatefairvalueduetotheshortmaturityofthesefinancialinstruments.Thecarryingamountsofnotespayablewithvariableinter-estratesapproximatetheirfairvaluesincethevariableratesreflectcurrentmarketratesfornoteswithsimilarmaturitiesandcreditquality.Thefairvalueofbondspayablewithfixedinterestratesisbasedonratesassumedtobecurrentlyavailableforbondissueswithsimilartermsandaveragematurities.TheestimatedfairvalueofthesebondspayableatMay31,2010and2009approximated$795.1and$811.6million,respectively.Thecarry-ingamountsofthesebondspayableatMay31,2010and2009approximated$799.7and$823.5million,respectively.
7.PropertyandEquipmentPropertyandequipmentandrelatedaccumulateddepreciationandamortizationatMay31consistofthefollowing(inmillions): UsefulLives 2010 2009
Land - $ 91.0 $ 91.2Landimprovements 20years 77.3 74.6Buildingsandbuildingimprovements 8to50years 1,477.0 1,359.0Leaseholdimprovements 1to50years 32.6 35.1Constructioninprogress - 27.5 93.6Moveableequipment 3to20years 498.3 457.7Librarymaterials 12years 108.6 105.1Artobjects - 49.7 49.1
2,362.0 2,265.4Accumulateddepreciationandamortization (927.6) (833.8)
Total $1,434.4 $1,431.6
Interestonborrowingstofinancefacilitiesiscapitalizedduringconstruction,netofanyinvestmentincomeearnedthroughthetemporaryinvestmentofprojectborrowings.Netinterestexpenseof$1.7and$3.2millionwascapitalizedfortheyearsendedMay31,2010and2009,respectively.
8.IntangibleAssetsOnDecember1,2007,theUniversityacquiredcertainassetsandliabilitiesofageneralacutecarehospital.Aspartofthetransaction,intangibleassetswererecordedamountingto$105.2million.Inaddition,theUniversityacquiredaphysicianpracticeandrecorded$1.7millionasanintangibleassetfortheyearendedMay31,2010. Intangibleassetsrecordedareasfollows(inmillions): UsefulLife 2010 2009
Amortizedintangibleassets Goodwillatgrosscarryingvalue 40years $ 105.8 $ 104.1 AccumulatedAmortization (6.6) (4.0)Indefinitelivedintangibleassets 1.1 1.1
Total $ 100.3 $ 101.2
5.Investments(continued)FairValueofInvestments(continued)
4 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 9
Notes to Financial
StatementsMay31,2010and2009
Notes to Financial StatementsMay31,2010and2009
10.PensionandOtherPostretirementBenefitPlansTheUniversityhastwonon-contributoryretirementplans,theFacultyRetirementPlanandtheEmployeeRetirementPlan.ThesetwoplansclosedtonewparticipantsonMay31,2007.OnJune1,2007anewretirementplanwasestablished,theRetirementSavingsPlan. TheUniversityalsosponsorsanunfunded,definedbenefitpostretirementhealthplanthatcoversallfull-timeandpart-timeregularemployeeswhoelectcoverageandsatisfytheplan’seligibilityrequirementswhentheyretire.Theplaniscontributorywithretireecontributionsestablishedasapercentageofthetotalcostforretireehealthcareandforthehealthcareoftheirdependents.TheUniversitypaysallbenefitsonacurrentbasis. TheRetirementSavingsPlan(SavingsPlan)isadefinedcontributionplaninwhichtheUniversitymakesanautomaticcorecontributionof5%ofpaywithadollar-for-dollarmatchonvoluntarycontributionsuptoanadditional5%ofpay.ParticipationislimitedtofacultyandstaffhiredonorafterJune1,2007orwhoelected,priortoJune1,2007,totransfertothisplanfromtheFacultyRetirementPlanorfromtheEmployeeRetirementPlan.CoreandmatchingcontributionstotheSavingsPlanfor2010and2009were$27.7and$18.2million,respectively. TheRetirementSavingsPlanII(SavingsPlanII)isadefinedcontributionplantheUniversityestablished,effectiveJanuary1,2008,thatcoverssubstantiallyallemployeesoftheUniversityofMiamiHospital(UMH).TheplanisavailabletoemployeeswhomeetcertaineligibilityrequirementsandrequiresthatUMHmatchcertainpercent-agesofparticipants’contributionsuptocertainmaximumlevels.CoreandmatchingcontributionstotheSavingsPlanIIwereapproximately$3.9and$2.9millionfortheyearsendedMay31,2010and2009,respectively. FacultyRetirementPlan(FacultyPlan)isadefinedcontributionplanforeligiblefacultyhiredbetweenSeptember30,1977andMay31,2007,andcertainfacultyhiredonorbeforeSeptember30,1977,whoceasedparticipationintheEmployeePlan.UnderthetermsoftheFacultyPlan,theUniversitymakescontributionstoindividualretirementac-countsforeacheligiblefacultymember.Paymentfromtheretirementaccountcommenceswhenthefacultymemberhasseparatedfromserviceandelectstobegindistributionsinaccordancewithplanprovisions. ContributionstotheFacultyPlanarebaseduponacombinationofcompensation,tenurestatus,lengthofservice,andotherfactorsandarefundedasaccrued.Thesecontributionswere$25.5and$25.2millionfortheyearendedMay31,2010and2009,respectively.Inad-ditiontotheabovenotedplans,therearedeferredcompensationarrangementsforcertainemployees,principallyclinicalfaculty,theliabilityforwhichisincludedinotherliabilities. TheEmployeeRetirementPlan(EmployeePlan)isadefinedbenefitplanprimarilyforfull-timenon-facultyemployeeshiredbeforeJune1,2007.EmployeePlanassetsareheldbyaTrustee.Thebenefitsarebasedonyearsofserviceandtheemployee’scom-pensationduringthelastfiveyearsofemployment.TheEmployeePlanalsoprovidesanalternativebenefitthroughacashbalancebenefitformuladeterminedeachyearbasedoncompensationandinvestmentearnings. AtMay31,2009,aproposedEmployeePlanamendmentwasapprovedbytheInternalRevenueServicewhichenablestheplantoofferlumpsumdistributionoptionstopartici-pantswhoretiredonorafterJanuary1,2001andmettheRuleof70. ThemeasurementdatefortheEmployeePlanandpostretirementhealthbenefitplanisMay31forfiscalyears2010and2009. Thefollowingbenefitpayments,whichreflectexpectedfutureservice,areexpectedtobepaid,forthefiscalyearsendingMay31(inmillions): PensionBenefits PostretirementBenefits
2011 $ 32.7 $ .2 2012 33.2 .2 2013 35.6 .2 2014 36.1 .2 2015 38.5 .2 2016-2020 224.5 1.2
TheUniversityexpectstocontribute$30.8milliontotheEmployeePlanand$.2milliontoitspostretirementhealthplanduringthefiscalyearendingMay31,2011. Thetablesthatfollowprovideareconciliationofthechangesintheplans’projectedbenefitobligations,fairvalueofassetsandfundedstatus(inmillions): Pension Postretirement Benefits Benefits
2010 2009 2010 2009
ChangeinBenefitObligationBenefitobligationatbeginningofyear $ 627.9 $ 613.7 $ 3.0 $ 2.6Effectofeliminatingearlymeasurementdate - 5.7 - -Servicecost–benefitsattributedtoemployeeserviceduringperiodandadministrativeexpenses 17.3 16.8 .2 .2Interestcostsaccruedtomeasurebenefitobligationatpresentvalue 41.5 41.0 .2 .2Planparticipantcontributions - - .6 .6Actuarialloss(gain) 112.2 (14.1) .2 .3Benefitspaidandadministrativeexpenses (34.9) (35.2) (.8) (.9)Changeinplanprovisions (8.1) - - -
Benefitobligationatendofyear 755.9 627.9 3.4 3.0
ChangeinPlanAssetsEmployeePlanassetsatfairvalueatbeginningofyear 375.5 493.2 - -Effectofeliminatingearlymeasurementdate - 1.5 - -InvestmentreturnonEmployeePlanassets 66.1 (87.9) - -BenefitspaidandEmployeePlanexpenses (34.9) (35.2) (.8) (.9)Employercontributions 41.7 3.9 .2 .3Planparticipantcontributions - - .6 .6
EmployeePlanassetsatfairvalueatendofyear 448.4 375.5 - -
FundedstatusAccruedpostretirementbenefitcostrecognizedonthestatementoffinancialposition $ (307.5) $ (252.4) $ (3.4) $ (3.0)
Amountsrecognizedinunrestrictednetassetsconsistof: Netactuarialloss(gain) $ 293.3 $ 232.7 $ (1.0) $ (1.2) Priorservice(credit)cost (5.7) 1.9 (.9) (1.0) Transitionobligation - - .3 .5
$ 287.6 $ 234.6 $ (1.6) $ (1.7)
AtMay31,2010and2009,theaccumulatedbenefitobligationoftheEmployeePlanwas$703.4and$587.6million,respectively,$254.9and$212.1million,respectively,inexcessofEmployeePlanassets.
Thefollowingtableprovidesthecomponentsofnetperiodicpensioncostfortheplans(inmillions): Pension Postretirement Benefits Benefits
2010 2009 2010 2009
Servicecost:Benefitsattributedtoemployeeserviceduringperiodsandadministrativeexpenses $ 17.3 $ 16.8 $ .2 $ .2
Total 17.3 16.8 .2 .2
Interestcostsaccruedtomeasurebenefitobligationatpresentvalue 41.5 41.0 .2 .2ExpectedreturnonEmployeePlanassets (31.2) (40.9) - -Amortizationofpriorservicecost/(credit)-includeschangesinpensionformulaandcostofEmployeePlanamendments (.6) .4 (.1) (.1)Amortizationoftransitionobligation - - .1 .1Recognizednetactuarialloss 16.8 7.0 - -
Netperiodicbenefitcost $ 43.8 $ 24.3 $ .4 $ .4
Thenetactuarial(gain)loss,priorservicecost(credit),andtransitionamountexpectedtoberecognizedinnetperiodicbenefitcostoverthenextfiscalyearareasfollows(inmillions): PensionBenefits PostretirementBenefits
Netactuarialloss(gain) $ 20.5 $ (.1)Priorservicecost(credit) (.6) (.1)Transitionobligation - .1
A10%annualrateofincreaseinthepercapitacostofcoveredhealthcarebenefitswasassumedfor2010.Therateisassumedtodecrease1%peryearuntilreachingtheulti-mate5.5%in2014.Assumedhealthcarecosttrendrateshaveaneffectontheamountsreportedforthehealthcareplan.A1%changeinassumedhealthcarecosttrendrateswouldhavethefollowingeffect(inmillions): 1%Increase 1%Decrease
Effectontotalofserviceandinterestcostcomponentsofnetperiodicpostretirementhealthcarebenefitcost $ .1 $ (.1)Effectonthehealthcarecomponentoftheaccumulatedpostretirementbenefitobligation .5 (.4)
Thefollowingweighted-averageassumptionswereusedfortheabovecalculations: Pension Postretirement Benefits Benefits
2010 2009 2010 2009
Discountrateforbenefitobligation 5.65% 6.65% 5.65% 6.65%Discountratefornetperiodicbenefitcost 6.65% 6.50% 6.65% 5.75%ExpectedreturnonEmployeePlanassets 8.25% 8.50% N/A N/ARateofcompensationincrease 4.20% 4.20% N/A N/A
Todeveloptheexpectedlong-termrateofreturnfortheEmployeePlan,theUniversityconsideredthehistoricalreturnsofthemajormarketindicatorsrelatingtothetargetassetallocation,aswellasthecurrenteconomicandfinancialmarketconditions.
EmployeePlanAssetsTheinvestmentpolicyandstrategy,asestablishedbytheUniversity,istoprovideforgrowthofcapitalwithamoderatelevelofvolatilitybyinvestingassetsbasedonitstargetallocations.TheweightedaveragetargetallocationsforplanassetsoftheEmployeePlanis34.0%equitysecurities,35.0%fixedincome,and31.0%otherinvestments.TheUniversityreallocatesitsinvestmentsperiodicallytomeetthetargetallocations.TheUniversityalsoreviewsitsinvestmentpolicyperiodicallytodetermineifthepolicyorallocationsrequirechange.Equitysecuritiesincludeinvestmentsinlarge-midcapandsmall-capcompaniesprimarilylocatedintheUnitedStates,aswellasinternationalcompanies.Fixedincomesecuritiesincludecorporatebondsofcompaniesfromdiversifiedindustries,mortgage-backedsecurities,andU.S.Treasuries.Othertypesofinvestmentsincludeinvestmentsinhedgefundsandprivateequityfundsthatfollowseveraldifferentstrategies. TheEmployeePlan’sinvestments,bylevel,withinthefairvaluehierarchyareasfollows(inmillions): AtMay31,2010
Total Level1 Level2 Level3
Commonstocks: Large-midcap $ 21.3 $ 21.3 $ - $ - Smallcap 15.8 15.8 - -Registeredmutualfunds: Equities-emergingmarkets 3.1 - 3.1 - FixedIncome 70.0 - 70.0 -Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Equities: Emergingmarkets 9.1 - 9.1 - International 7.5 - 7.5 - Large-midcap 46.3 - 46.3 - Privateequity 18.1 - - 18.1 Other: Eventarbitrage 28.3 - - 28.3 Long-shortcomposite 19.9 - 10.6 9.3 Realestate 10.3 - - 10.3Moneymarketaccounts .7 .7 - -Commoncollectivetrusts: Equities-international 9.9 - 9.9 - Realassetsrelatedsecurities 12.7 - 12.7 -103-12Investmententities: Equities: International 38.6 - 38.6 - Smallcap 14.9 - 14.9 - Fixedincome 81.7 - 72.6 9.1Otherinvestments: Privateequity 3.8 - - 3.8 Long-shortcomposite 22.8 - 13.4 9.4 Fixedincome 9.9 - - 9.9 Realassetsrelatedsecurities 1.1 - - 1.1
Total $ 445.8 $ 37.8 $ 308.7 $ 99.3
10.PensionandOtherPostretirementBenefitPlans(continued)
5 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 5 1
Notes to Financial
StatementsMay31,2010and2009
Notes to Financial StatementsMay31,2010and2009
AtMay31,2009
Total Level1 Level2 Level3
Commonstocks $ 28.7 $ 28.7 $ - $ -Registeredmutualfunds 37.9 - 37.9 -Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Privateequity 65.3 - 51.5 13.8 Eventarbitrage 22.5 - - 22.5 Realestate 10.2 - - 10.2 Other 21.1 - 10.1 11.0Moneymarketaccounts 9.5 9.5 - -Commoncollectivetrusts 11.5 - 11.5 -103-12Investmententities 132.3 - 124.9 7.4Otherinvestments: Equitiesandprivateequities 3.1 - - 3.1 Realestate 1.6 - - 1.6 Other 32.7 - 12.4 20.3
Total $ 376.4 $ 38.2 $ 248.3 $ 89.9
11.BondsandNotesPayableBondsandnotespayableatMay31consistofthefollowing(inmillions): Final 2010 Series Maturity InterestRate 2010 2009
Miami-DadeCounty,FloridaEducational 2007Ato 2015to 4.0%toFacilitiesAuthority 2008B 2038 6.1% $ 767.8 $ 789.2Notespayableto 2013to 3.3%tobanksandothers - 2014 6.5% 24.2 -Notespayabletobanksandothers 2035 Variable 20.4 77.1
Paramountofbonds andnotespayable 812.4 866.3Netunamortizedpremium 31.9 34.3
Total $ 844.3 $ 900.6
TheannualmaturitiesforbondsandnotespayableatMay31,2010areasfollows(inmillions): 2011 $ 24.4 2012 26.1 2013 26.1 2014 23.6 2015 21.9 Thereafter 690.3
Total $ 812.4
OnDecember18,2008,theUniversityenteredintoalineofcreditarrangementwhichcarriesamaximumpossiblebalanceof$100.0million.TheloanhasavariableinterestrateequaltotheLIBORDailyFloatingRateplus0.75%perannum.AsofMay31,2009,theUniversityhaddrawndown$55.0millionoftheloanbalance.OnDecember17,2009,theUniversityrenewedthelineofcreditunderthesametermswithanewmaturitydateofDecember31,2010.TherewasnobalanceoutstandingunderthelineofcreditasofMay31,2010.InNovember2009,theUniversityborrowed$20.0millionfromabanktofundtheEmployees’RetirementPlan. Totalinterestpaidonallbondsandnoteswas$42.6and$42.1millionfortheyearsendedMay31,2010and2009,respectively.
12.NetAssetsUnrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009
Designatedforoperations,programs,facilitiesexpansionandstudentloans $ 117.9 $ 94.5Cumulativepostretirementbenefitsrelatedchangesotherthannetperiodicbenefitcost (286.0) (232.9)Investedinplantfacilities 721.9 718.7Endowmentandsimilarfunds 276.2 208.3
Totalunrestrictednetassets $ 830.0 $ 788.6
TemporarilyrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009
Giftsforprogramsandfacilitiesexpansion $ 26.2 $ 36.9Contributions(pledges)andtrusts 90.0 94.8Lifeincomeandannuityfunds 8.9 9.5Endowmentandsimilarfunds 29.3 29.1
Totaltemporarilyrestrictednetassets $ 154.4 $ 170.3
PermanentlyrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009
Contributions(pledges)andtrusts $ 61.0 $ 54.9Endowmentandsimilarfunds 312.7 301.2
Totalpermanentlyrestrictednetassets $ 373.7 $ 356.1
13.GiftsandTrustsTheUniversity’sAdvancementOffice(Advancement)reportstotalgiftsandtrustsbasedontheManagementReportingStandardsissuedbytheCouncilforAdvancementandSupportofEducation(CASE).Gifts,trusts,andpledges(giftsandtrusts)reportedforfinancialstate-mentpurposesarerecordedontheaccrualbasis. ThetablebelowsummarizesgiftsandtrustsreceivedfortheyearsendedMay31,2010and2009,reportedinthestatementsofactivitiesaswellastheCASEstandardsasreportedbyAdvancement(inmillions): 2010 2009
Unrestrictedgiftsandtrustsinsupportofprograms $ 58.5 $ 69.2Unrestrictedgiftsandtrustsforplantexpansion 8.3 6.1Temporarilyrestrictedgiftsandtrustsforprogramsandplantexpansion 26.6 13.4Permanentlyrestrictedendowmentgiftsandtrusts 12.1 14.0
Totalgiftsandtrusts,perstatementsofactivities 105.5 102.7
Increases(decreases)toreflectgiftsandtrustsperCASEstandards: Pledges,net 2.0 .5 Non-governmentgrants,includedingrants andcontractsrevenue 42.9 50.0 Differencesinvaluation/recording: Fundsheldintrustbyothers (.3) (4.6) Annuity .4 .5 Timing 2.6 4.5 Gift-in-kindrecordedunderCASEstandardsonly 6.4 -
TotalgiftsandtrustsasreportedbyAdvancement $ 159.5 $ 153.6
ThefollowingtablessetforthasummaryofchangesinthefairvalueoftheEmployeePlan’sLevel3investments.
FortheyearendedMay31,2010(inmillions):
Purchases,sales, Transfersin issuancesand and/orout May31,2009 settlements,net Realized Unrealized oflevel3 May31,2010
Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Privateequity $ 13.8 $ 2.2 $ 1.0 $ 1.1 $ - $ 18.1 Other: Eventarbitrage 22.5 1.4 1.7 2.7 - 28.3 Long-shortcomposite 11.0 (3.2) 1.3 .2 - 9.3 Realestate 10.2 1.2 .1 (1.2) - 10.3103-12Investmententities: Fixedincome 7.4 .6 - 1.1 - 9.1Otherinvestments: Privateequity 3.1 (.3) - 1.0 - 3.8 Long-shortcomposite 11.7 (3.0) .8 (.2) .1 9.4 Fixedincome 8.6 - - 1.3 - 9.9 Realassetsrelatedsecurities 1.6 (.3) (.5) .3 - 1.1
Total $ 89.9 $ (1.4) $ 4.4 $ 6.3 $ .1 $ 99.3
FortheyearendedMay31,2009(inmillions):
Purchases,sales, issuancesand May31,2008 settlements,net Realized Unrealized May31,2009
Unregisteredlimitedpartnershipsandlimitedliabilitycompanies $ 59.5 $ 9.7 $ - $ (11.7) $ 57.5103-12Investmententities 7.9 .7 - (1.2) 7.4Otherinvestments 26.5 1.8 (.1) (3.2) 25.0
Total $ 93.9 $ 12.2 $ (.1) $ (16.1) $ 89.9
Totalnetgains(losses)includedinchangesinnetassets
Totalnetgains(losses)includedinchangesinnetassets
10.PensionandOtherPostretirementBenefitPlans(continued)EmployeePlanAssets(continued)
14.CommitmentsandContingenciesTheUniversityhadcontractualobligationsofapproximately$66.1millionatMay31,2010forvariousconstructionprojectsandpurchasesofequipment.TheUniversityhasalsoenteredintoprofessionalserviceagreementswithHospitalCorporationofAmerica,Inc.(HCA,Inc)andvariousHCA,Inc.affiliates.Futureminimumcommitmentsundertheseagreementsrangefrom$3.1to$24.3millionperyearoverthenexteightyears,totaling$131.1million. InFebruary2008,theUniversityenteredintoafiveyearInnovationIncentiveFundingAgreementwiththeStateofFlorida(theState),OfficeofTourism,TradeandEconomicDevelopment.TheagreementcreatestheMiamiInstituteforHumanGenomics(theInstitute)andaprogramandinfrastructurethatsupportsandbenefitsitsoperations.TheagreementcallsfortheStatetofund$80.0millionwithaUniversitypledgefor$100.0mil-liontowardsthefinancialsupportoftheInstitute.AsofMay31,2010,theUniversityhasreceived$43.4millionfromtheStateandhasspent$56.8millioninmatchingfunds. TheUniversity,initsnormaloperations,isadefendantinvariouslegalactions.Ad-ditionally,amountsreceivedandexpendedundervariousfederalandstateprogramsaresubjecttoauditbygovernmentalagencies.ManagementisoftheopinionthattheoutcomeofthesematterswouldnothaveamaterialeffectontheUniversity’sfinancialpositionorresultsofoperations. TheUniversityleasescertainrealproperty.Theseleasesareclassifiedasoperatingleasesandhaveleasetermsranginguptoseventyfiveyears.TotalleaseexpensefortheyearsendedMay31,2010and2009was$21.8and$20.1million,respectively.Futuremini-mumleasepaymentsundernoncancelableoperatingleasesatMay31,2010areasfollows(inmillions): 2011 $ 6.3 2012 6.1 2013 7.8 2014 6.7 2015 5.6 Thereafter 277.2
Total $309.7
Notes to Financial
StatementsMay31,2010and2009
5 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T
Phillip T. George 1, 2, 3, 4
ChairChairmanBrava, L.L.C.
Leonard Abess 1, 4
Vice ChairChief Executive OfficerCity National Bank of Florida
Wayne E. Chaplin 1, 4
Vice ChairPresident and Chief Operating OfficerSouthern Wine & Spirits of America, Inc.
William L. Morrison 1, 2, 4
Vice Chair Chief Financial Officer Northern Trust Corporation
SENIOR TRUSTEESMichael I. Abrams Director, Miami Policy GroupAkerman Senterfitt
Betty G. Amos 1, 2, 3
PresidentThe Abkey Companies
Stanley H. ArkinPresidentArkin Consulting, Inc.
Jose P. Bared Chairman (Retired)Farm Stores/Gardner’s Super Market
Fred Berens Managing Director - InvestmentsWachovia Securities
M. Anthony Burns 3
Chairman EmeritusRyder System, Inc.
Charles E. Cobb 1, 4
Senior Managing Director and Chief Executive OfficerCobb Partners, Limited
Nicholas A. CranePresidentNucrane Corporation
Carlos M. de la Cruz, Sr. 4
Chairman of the Board and Chief Executive OfficerCC1 Companies, LLC
Enrique C. Falla, Sr. 2, 3
Executive Vice President (Retired)Dow Chemical Company/ Guidant Corporation
Phillip Frost 4
Chairman Ladenburg Thalmann Financial Services, Inc.
Rose Ellen Greene 1
Arthur H. Hertz 3
Chairman of the Board and Chief Executive OfficerWometco Enterprises, Inc.
David KraslowVice President (Retired)Cox Newspapers
Arva Parks McCabePresidentArva Parks & Company
Archie L. Monroe 3
M. Lee PearcePrivate Investor
Carlos A. Saladrigas Chairman and Chief Executive OfficerRegis HR Group
Ronald G. Stone 4
PresidentThe Comprehensive Companies
Robert C. Strauss
David R. Weaver 1, 4
Managing Partner and ChairmanIntercap Institutional Investors LLC
Sherwood M. Weiser 4
Chairman and Chief Executive OfficerThe Continental Companies
G. Ed Williamson II Chairman and Chief Executive OfficerWilliamson Automotive Group
Thomas D. WoodChairman Thomas D. Wood and Company
NATIONAL TRUSTEESNicholas A. Buoniconti
Alfonso FanjulChairman and Chief Executive OfficerFanjul Corp. and Florida Crystals Corporation
Steven J. GreenManaging DirectorGreenstreet Partners
Carlos M. GutierrezChairman Global Political Strategies APCO Worldwide
Lois PopePresidentLeaders in Furthering Education, Inc.
Alex E. RodriguezMajor League Baseball PlayerNew York Yankees
TRUSTEESJose R. Arriola
Adrienne Arsht
Hilarie Bass, Esq. 1, 2, 3
Global Operating ShareholderGreenberg Traurig, P.A.
Jon BatchelorExecutive Vice PresidentThe Batchelor Foundation
Joaquin F. Blaya
Norman BramanPresident, Chairman and Chief Executive OfficerBraman Management Association
Marc A. BuonicontiPresident The Miami Project to Cure Paralysis
Alfred R. Camner 2
Camner Lipsitz, P.A.
Laura G. Coulter-Jones
Edward A. Dauer 1
PresidentFlorida Medical Services, Inc.
Paul J. DiMare 1
PresidentDiMare Homestead, Inc.
David L. EpsteinManaging PartnerPresidential Capital Partners
Richard D. Fain 1, 2
Chairman and Chief Executive OfficerRoyal Caribbean Cruises, Ltd.
George Feldenkreis 2
Chairman and Chief Executive OfficerPerry Ellis International
Michael B. FernandezChairman and Chief Executive OfficerMBF Healthcare Partners, LP
Thelma V. A. GibsonPresident Emeritus Theodore R. Gibson Memorial Fund
Barbara Hecht HavenickPresident and CEOFlagler Greyhound Track and Magic City CasinoGeneral PartnerHecht Properties, Ltd.
Marilyn J. Holifield, Esq.PartnerHolland & Knight, L.L.P.
Manuel Kadre, Esq.Gold Coast Beverage Distributors
Bernard J. Kosar Jr.
Jayne Sylvester Malfitano
Robert A. Mann
Roger J. Medel 1
Chief Executive OfficerMEDNAX
Stuart A. Miller 2
President, Chief Executive Officer and DirectorLennar Corporation
Joshua W. Moore
Judi Prokop Newman
Jorge M. PerezFounder, Chairman and Chief Executive OfficerThe Related Group
Aaron S. Podhurst 1
Senior PartnerPodhurst Orseck, P.A.
Matthew E. RubelChairman, Chief Executive Officer and PresidentCollective Brands, Inc.
Steven J. Saiontz 1
Eduardo M. Sardiña
Maria Lamas ShojaeeChief Executive Officer Shoma Group
Laurie S. Silvers, Esq. 1
PresidentHollywood Media Corp.
H. T. Smith Jr., Esq. 1
H. T. Smith, P.A.
Steven Sonberg, Esq.Managing PartnerHolland & Knight, L.L.P.
E. Roe Stamps, IV 1
Founding Managing PartnerSummit Partners
Bruce E. TollVice ChairmanToll Brothers, Inc.
Patricia W. Toppel General PartnerToppel Partners
Barbara A. Weintraub
EX OFFICIO MEMBERSPatrick K. BarronPresident, Alumni AssociationFirst Vice President and Chief Operating OfficerFederal Reserve Bank of Atlanta
Dany Garcia 1, 3
President-elect, Alumni AssociationChairwoman, White Buffalo Media
Fredric A. Hoffman, Esq.Immediate Past PresidentCitizens BoardCohen, Chase, Hoffman & Schimmel, P.A.
Peggy M. HollanderPresident, Citizens BoardManaging Partner The Succession Group
Jacqueline F. Nespral Immediate Past President, Alumni AssociationAnchorWTVJ – NBC6
Donna E. Shalala 1, 2, 3, 4
PresidentUniversity of Miami
EMERITI MEMBERSBernyce Adler Executive Vice ChairmanAdler Group, Inc.
Paul L. CejasChairman and Chief Executive OfficerPLC Investments, Inc.
Victor E. ClarkePresident and Chief Executive OfficerGables Engineering, Inc.
Edward W. Easton Chairman and Chief Executive OfficerThe Easton Group
Gloria EstefanEstefan Enterprises, Inc.
Peter T. FaySenior United States Circuit JudgeUnited States Court of Appeals, Eleventh Circuit
David I. FuenteBoard MemberOffice Depot, Inc.
Florence Hecht General Partner Flagler Greyhound TrackDirectorSouthwest Florida Enterprises, Inc.
Fredric G. Reynolds
Frank Scruggs, Esq.AttorneyBerger Singerman
Marilyn Segal
Robert H. SimmsPresident and Chief Executive OfficerBob Simms Associates, Inc.
Gonzalo F. Valdes-FauliChairman Broadspan Capital
Marta S. Weeks
Frances L. Wolfson
Charles J. Zwick
CORPORATE OFFICERSDonna E. ShalalaPresident
Thomas J. LeBlancExecutive Vice President and Provost
Pascal J. GoldschmidtSenior Vice President for Medical Affairs and Dean, Leonard M. Miller School of Medicine
Joseph NatoliSenior Vice President for Business and Finance and Chief Financial Officer
Sergio M. GonzalezSenior Vice President for University Advancement and External Affairs
William J. DonelanVice President for Medical Administration and Chief Operating and Strategy Officer, Leonard M. Miller School of Medicine and University of Miami Health System
Rudy FernandezVice President for Government Affairs
Larry D. MarbertVice President for Real Estate and Facilities
Jacqueline R. MenendezVice President for University Communications
Nerissa E. MorrisVice President for Human Resources and Affirmative Action
Paul M. OrehovecVice President for Enrollment Management and Continuing Studies
John R. ShipleyVice President of Finance and Treasurer
Aileen M. UgaldeVice President, General Counsel, and Secretary of the University
Patricia A. WhitelyVice President for Student Affairs
Aida Diaz-PiedraAssociate Vice President and Controller
Leslie Dellinger AceitunoAssistant Secretary
DEANSElizabeth Plater-ZyberkSchool of Architecture
Leonidas BachasCollege of Arts and Sciences
Barbara E. KahnSchool of Business Administration
Sam L GroggSchool of Communication
Isaac PrilleltenskySchool of Education
James M. TienCollege of Engineering
Terri A. ScanduraGraduate School
Patricia D. WhiteSchool of Law
William D. WalkerUniversity Libraries
Roni AvissarRosenstiel School of Marine and Atmospheric Science
Pascal J. GoldschmidtLeonard M. Miller School of Medicine
Shelton G. BergPhillip and Patricia Frost School of Music
Nilda P. PeragalloSchool of Nursing and Health Studies
William Scott GreenUndergraduate Education
University of Miami Board of Trustees and Administration
*As of September 13, 2010
Members of board committees authorized to conduct business and financial affairs of the University:1 Member of Executive Committee2 Member of Finance Committee3 Member of Audit and Compliance Committee4 Member of Trustee Service Committee
W W W . M I A M I . E D U
An Equal Opportunity/Aff irmative Act ion Employer
UNIVERSITY COMMUNICATIONS 09-254