A LEGACY OF STRATEGIC GROWTH

GEORGIA INSTITUTE OF TECHNOLOGY ANNUAL REPORT 2008 TABLE OF CONTENTS

1 A Legacy of Strategic Growth

2 The Power of People

6 The Promise of Research

11 The Value of Global Partnerships

14 The Impact of Economic Development

17 The Bonds of Community

20 Enrollment and Degrees

21 2007-2008 Timeline

24 In Appreciation Main cover image and above image: Inside view of a vacuum chamber used in aerospace engineer- ing research. GEORGIA INSTITUTE OF TECHNOLOGY

A LEGACY OF STRATEGIC GROWTH

The 2007-08 academic year capped been energized in many ways, from a fourteen-year period of exceptional electronic learning enhancements to growth and progress for un- expanded study abroad programs and der the visionary and strategic leadership opportunities to participate in dynamic of G. Wayne Clough, the Institute’s tenth research offerings. president and the !rst alumnus to serve The campus has been reshaped for as president. beauty and sustainability, and its square When Clough arrived on campus on footage has more than doubled. New and September 1, 1994, he found a robust and renovated academic structures not only well-regarded regional university with a feature the latest in technology, but are reputation for engineering and applied also designed for "exibility and interdisci- research and an identity that was closely plinary collaboration. Expanded housing aligned with the South. The physical allows 70 percent of undergraduates to appearance of the campus was unimpres- live on campus, compared to 25-35 per- sive, and despite being in the middle of cent at the typical public university. , the university was isolated psy- The vision of Georgia Tech’s future chologically and intellectually from that was shaped, articulated, and realized the city. under Wayne Clough’s leadership has What a difference fourteen years inspired alumni, corporations, founda- has made! tions, and other friends to provide gener- Georgia Tech now ranks among the na- ous support for a wide array of programs. tion’s top public universities and is seen as As Clough departed Georgia Tech in a rising national power in emerging inter- June to become secretary of The Smith- disciplinary !elds such as biotechnology, sonian Institution, he left his alma mater nanotechnology, sustainability and energy, with an incredible legacy of strategic photonics and optics, telecommunications growth. This carefully crafted growth and microelectronics, manufacturing, has laid the foundation for even greater and logistics. The research enterprise has prominence in the future. The pages of more than doubled, and the Institute’s this Annual Report not only highlight the growing global platforms are making it Institute’s major accomplishments of the one of the world’s few truly interna- most recent !scal year, but also re"ect on tional universities. the unprecedented advances of the Clough Tech is now recognized as a national years, which have led Tech to the presti- leader in diversity among students and gious position it now enjoys—and to the faculty. The undergraduate experience has threshold of still greater heights.

2008 ANNUAL REPORT 1 A LEGACY OF STRATEGIC GROWTH

THE POWER OF PEOPLE

Honoring the work of students, faculty, and staff Georgia Tech’s most valuable asset is—and always will be—its people. Tech’s students, faculty, and staff are among the brightest and hardest working in the nation and the world. Because talented people are so central to the Insti- tute’s ongoing success, Tech invests in them and lauds their achievements. PEOPLE

Fostering Student Success meet the !nancial needs of A consistent focal point of Wayne its lowest income students Clough’s presidency was making the and families has eroded,” said undergraduate experience more engag- Clough. “The Tech Promise ing and exciting. Begun in earnest in the initiative is designed to !ll late 1990s, that effort included improving this gap, helping us ensure academic advising, increasing academic that no quali!ed Georgia stu- services, expanding opportunities for dent will be forced to decline undergraduates to engage in meaningful an offer of admission to Tech research, and creating a wide range of because of !nances.” study abroad opportunities for all majors. “Tech Promise is the pri- More than 40 percent of Tech undergrad- mary reason I am still in uates now engage in structured research, school,” says Emily Weigel, and more than a third study abroad. a double major in Biology/ Clough also oversaw the creation of an International Affairs and Honors Program and innovative inter- Modern Languages who disciplinary degree programs such as HData from the National Survey of was among the !rst group of Georgia computational media and combinations Student Engagement also con!rm this Tech Promise scholars in the fall of 2007. of modern languages, international affairs, transformation. The number of Tech “Despite getting scholarships and having and global economics. seniors who think the Institute does well a job, I still had several thousand dollars These initiatives have paid off hand- in academic advising leapt from about 51 of unmet need. Now, being able to !nish somely. Student retention increased signi!- percent in 2001 to nearly 70 percent in college and go on to graduate school is cantly, and after languishing at 68 percent 2007. In the same time frame, the propor- looking like a great possibility.” for many years, the graduation rate has tion of seniors who felt that Tech does a Last spring, the program was renamed now reached 78 percent and is poised to good job of providing academic support the G. Wayne Clough Georgia Tech go even higher. increased from less than 45 percent to Promise in recognition of the vital role nearly 60 percent. the former president played in making the As powerful as this reshaping of the scholarship a reality. Because state funds undergraduate experience has been, its cannot be used for this purpose, the Insti- impact had been limited by declining tute is presently raising an endowment to access to a Tech degree due to the rapidly support the program. rising cost of education (a national trend). Complementing academic scholarships The growing problem genuinely struck a such as Georgia Tech Promise are a host chord with Clough, and he responded by proposing a bold new scholarship initia- tive dubbed the Georgia Tech Promise. Richard “Reeve” Ingle, a co-op student at NASA, Quickly embraced by Tech alumni and worked on a variety of projects, including the other private donors, this new program design of a dashboard display unit, developing an guarantees a debt-free undergraduate RF spectrum map for the SCOUT Project (NASA’s “moon-buggy” robot rover), developing electrical education for all academically quali!ed systems drawings for the International Space Sta- residents of Georgia from low- tion Japanese Experiment Module, and investigating income families. methods of cleaning clothing in space.

“While a Tech education continues to Academic advisor Nicole Leonard (left) talks with be a great value, the Institute’s ability to Honors Program student Diana Kerckhof.

2 GEORGIA INSTITUTE OF TECHNOLOGY PEOPLE

Mary Vaughn, a Science, Technology, and Culture major, says the Georgia Tech Promise scholarship has allowed her to spend more time on her studies and less time working. “Tech Promise has allowed me to work only one job, focus on my education, and begin saving money for graduate school,” she says. of athletic scholarships. Last spring, the family of the late William E. “Bill” Moore, Celebrating Student for whom the Student Success Center and the Tennis Center are named, established Achievement the Moore Family Scholarship Fund for Women’s Tennis in honor of the 2007 Georgia Tech students are known for their NCAA national titled earned by Tech’s intellectual prowess and accomplishments, women’s team. and that tradition continued in 2008. “This endowment established by the Prashant Jain, a graduate student in Moore family is a long-term investment Chemistry and Biochemistry, became one in our team that will allow us to attract of six students worldwide to receive the women students who are highly skilled Graduate Student Gold Award of the and competitive tennis players and top- Materials Research Society. Richard notch scholars,” says Bryan Shelton, “Reeve” Ingle was named Student of the head coach of women’s tennis. “This is Hackman broke new ground with a gift that will have a major impact Production Economics: Integrating the Year by the Cooperative Education Division in perpetuity.” Microeconomic and Engineering Perspec- of the American Society of Engineering tives, which integrates two historically Education. A senior Electrical Engineering Faculty Excel in Diversity of Disciplines distinct perspectives. major with a 4.0 GPA, Ingle completed four Another theme of the Clough administra- “A production economist focuses on co-op work terms with the NASA Johnson tion was increasing the size and quality of assessment, while a production engineer Space Center and an internship with the the Tech faculty. The number of full-time focuses on optimizing resources,” says U.S. Department of Defense. instructional faculty grew from 630 in Hackman. “Each group could bene!t from Tech students also garnered the nation’s 1994 to 863 in 2007, and the number of the other group’s perspective. The book most prestigious academic scholarships: National Science Foundation CAREER offers a uni!ed, integrated point of view t/JDPMF-BSTFO BEPVCMFNBKPSJO Award recipients among Tech’s young that bridges the gap between these two Mathematics and Physics, received a faculty jumped from 7 in 1995 to 122 by historically distinct perspectives.” mid-2008, second highest in the nation. Other notable faculty achievements in $10,000 scholarship from the Astronaut Even as engineering faculty continue to 2007-08 include: Scholarship Foundation in recognition of exhibit the excellence inherent in a top- r%BWJE#BEFS $PNQVUJOH QVCMJTIFE her exceptional performance, initiative, ranked program, professors in a range of Petascale Computing: Algorithms and and creativity in her majors. Larsen other disciplines are increasingly attracting Applications, the world’s !rst published participated in the Cornell Laboratory of attention. For example, Ian Bogost, associ- collection of petascale techniques for Elementary Particle Physics REU. ate professor in the School of Literature, computational science and engineering. t"OESFB#BSSFUU *OO*OO$IFO BOE:JYBP Communication, and Culture, published Petascale computers can perform one Zou, all Biomedical Engineering majors, Persuasive Games last year to much criti- quadrillion operations per second, nearly received Goldwater Scholarships, cal acclaim. Bogost uses video games to ten times the speed of today’s fastest awarded to outstanding students in math- simulate and explore complex societal supercomputers. ematics, science, and engineering who systems, and his book advances a theory r+FBO-VD#SFEBT $IFNJTUSZBOE of how video games shape arguments and Biochemistry) ranks as one of the plan to pursue graduate school. Chen in"uence players. world’s 100 most cited chemists and is was also named a Marshall Scholar and “Games represent how real and imag- the third most cited on organic thin- member of USA Today’s all-USA College ined systems work, and they invite players !lm transistors. Academic Team. to interact with those systems and form r#JMM,PSPT $IFNJDBMBOE#JPNPMFDVMBS t5IPNBT&BSOFTU *OUFSOBUJPOBM"GGBJST  judgments about them,” says Bogost. Engineering) won the 2008 Alan S. Halley Espy (International Affairs), and “Drawing on the history of rhetoric, the Michaels Award for Innovation in Daniel Shorr (Psychology) received study of persuasive expression, I analyze Membrane Science and Technology. Fulbright Scholarships, which are [in Persuasive Games] rhetoric’s unique r"BSPO-FWJOF 1VCMJD1PMJDZ QVCMJTIFE designed to promote mutual understand- function in software in general and video Cloning: A Beginner’s Guide, which ing among people of the games in particular.” explains the science behind cloning and other countries. The College of Management demon- and embryonic stem cell research and strated its growing excellence not only in explores related ethical and policy t"OESFX.BSJO B$IFNJDBMBOE#JPNP- strongly rising rankings, but also in the controversies. lecular Engineering major, received a attention its research attracts. Science r%POBME'FEPSBOE%BWJE)FSPME .BO- Gates Cambridge Scholarship for gradu- Watch recently recognized Georgia Tech agement) published Change the Way ate study, awarded for his intellectual for having the largest percentage increase You Lead Change based on ten years of abilities, leadership capacity, and desire in citations of its scholarly work in man- research on unsuccessful corporate to contribute to society. agement and economics. change efforts. t5IPNBT$ISJTUJBO BO&BSUIBOE Although he works in the more tradi- Atmospheric Sciences major, received tional discipline of Industrial and Systems Georgia Tech’s first-ever Morris Udall Engineering, Associate Professor Steven

4 GEORGIA INSTITUTE OF TECHNOLOGY Scholarship, awarded to outstanding students who are committed to careers related to the environment. t"EBN5BSU B%JTDSFUF.BUIFNBUJDT major, received one of twelve George Mitchell Scholarships, awarded annually to students for a year of graduate study at any university in Ireland.

Emphasis on Staff Development Pays Off

A hallmark of Wayne Clough’s presidency was his belief that the Institute deserved a staff as excellent as its students and faculty, and he promoted the creation of a wide range of staff training opportunities to support the Institute’s workforce goals of developing: tBDVMUVSFUIBUSFMJFTVQPOBOEJTFOSJDIFE by a diversity of people, their perspec- tives and experiences; tBIJHIMZFOHBHFE QSPGFTTJPOBMDBNQVT community with the knowledge, skills, and ability to exceed expectations; and tBOFOWJSPONFOUJOXIJDIBMMFNQMPZFFT McDowell Wins NCAA Singles Championship understand the impact their contributions Georgia Tech All-American Amanda McDowell became the first Yellow Jacket have on the achievement of the Institute’s goals, and are proud to be members of to earn an individual national tennis championship at the NCAA Singles the Tech community. Championships last spring. She was the first Yellow Jacket ever to advance Staff quickly embraced these new oppor- to the tournament semifinals and won her last four matches in straight sets. tunities, with participation in staff training McDowell finished her remarkable sophomore season with a singles record programs increasing twenty-fold between of forty-five wins and eight losses, and has notched eighty-four singles wins in 1994 and 2008. Last fall alone, 223 her first two years at Tech. staff members completed professional certificate programs, and more than 2,000 completed online training modules. “As a learning community, we believe that the professional development of Georgia Tech’s employees is an investment in our future,” says JulieAnne Williamson, acting executive director of the Office of Organizational Development, which administers professional development and training programs for staff. “Without Dr. Clough’s unwavering belief in the power and the value of staff training and his active support of our efforts, I don’t know Ian Bogost (left), associate professor in the that we could have made the tremendous School of Literature, Communication, and Culture, published the book Persuasive Games last year to strides that we have in recent years.” much critical acclaim. The book advances a theory of how video games shape arguments and influence players.

2008 ANNUAL REPORT 5 A LEGACY OF STRATEGIC GROWTH

THE PROMISE OF RESEARCH

Using new knowledge to improve lives Georgia Tech has clearly emerged as a national and international leader in groundbreaking, interdisciplinary research that strives to improve the human condition. More than a decade ago, Tech’s academic leadership realized that the future of research resided in the spaces between the traditional academic disciplines and has worked to create a genu- inely interdisciplinary environment. One of the most dramatic examples was the formation in 1998 of the Wallace H. Coulter Department of Biomedical Engineering at Georgia Tech and Emory University, the nation’s first joint academic department between a public and a private university. Today, that same innovative spirit enables the Institute to forge ahead into critical areas such as sustainability, energy, and medicine.

Leading the Way in Sustainability Education, Research, and Policy From new buildings designed with the latest in sustainable features to ambitious plans for a campus Eco-Commons that will preserve green space and provide inte- grated storm water management, Georgia Tech’s commitment to environmental sustainability permeates the operation of its campus. It also infuses education and research. In fact, Tech’s College of Management was recently ranked among the world’s top 100 business schools by the Aspen Institute Center for Business Education for incorporating sustainability and social issues into its curriculum and research. Former President Wayne Clough not only encouraged and supported sustain- ability initiatives at Tech, but also devoted time and energy to shaping sustainability policy. Last fall, he participated in a high- member of Working Group III of the Published last fall in the Proceedings level working session on climate change Intergovernmental Panel on Climate of the National Academy of Sciences, policy in Washington, D.C., sponsored by Change (IPCC). the study revealed that as temperatures the Center for the Study of the Presidency. Working Group III has produced special decreased centuries ago during a period The non-partisan session focused on reports on Aviation, Emission Scenarios, called the Little Ice Age, the number of effective policy options and best practices Technology Transfer, Ozone and Climate, wars increased, famine occurred, and the in de!ning domestic policy, accelerating CO2 Capture and Storage, as well as the population declined. Data on past climates research and innovation, and identify- Third and Fourth Assessment Reports. As may help accurately predict and design ing an effective model for interna- a result, IPCC is recognized as an authori- strategies for future large and persistent tional cooperation. tative voice on the climate system and Insights from the discussion have been its impacts, and received the 2007 Nobel shared with presidential candidates, Peace Prize together with former Vice congressional leaders, the White House, President Al Gore. The potential impacts of climate change federal agencies, the research community, Public Policy Professor Marilyn Brown, author of and thought leaders. The Center hopes to may be much more extensive than previ- the book Energy and American Society: Thirteen work with the transition team for the next ously thought. In fact, Peter Brecke, Myths, is part of a group that received the 2007 president and encourage the new adminis- associate professor of International Nobel Peace Prize along with former Vice President Al Gore. tration to make climate change a priority. Affairs, is part of a research team whose Augmenting Clough’s work are the !ndings show that long-term climate Graduate student Jeffrey Drese displays a tubular efforts of faculty members such as Public change may ultimately lead to wars and reactor filled with the HAS adsorbent dispersed in sand. The reactor will be used to test the new Policy Professor Marilyn Brown, a population decline. material for its ability to capture carbon dioxide.

6 GEORGIA INSTITUTE OF TECHNOLOGY climate changes, but acknowledging the Combined with improved heat manage- historic social impact of these severe ment techniques, it could provide a events is an important step toward that cost-effective way to capture large quanti- goal, according to the study’s authors. ties of carbon dioxide from coal- “Even though temperatures are increas- burning facilities. ing now, the same resulting con"icts may “This is something that you could imag- occur since we still greatly depend on the ine scaling up for commercial use,” says land as our food source,” says Brecke. Professor Christopher Jones. “Our mate- “With more droughts and a rapidly grow- rial has the combination of high capacity, ing population, it is going to get harder easy synthesis, low cost, and a robust and harder to provide food for everyone, ability to be recycled—all the key criteria and thus we should not be surprised to see for an adsorbent that would be used on an Associate Professor Matthew Realff more instances of starvation and probably industrial scale.” more cases of hungry people clashing over Other Tech researchers are working to scarce food and water.” make emission-free vehicles a reality. Their Tech Professor goal is to trap, store, and eventually recycle carbon rather than releasing it Helps Develop Pioneering the Science from the tailpipe into the atmosphere. of Carbon Capture “Presently, we have an unsustainable New Standard for The rapid industrialization of nations such carbon-based economy with several severe as China and India has led to rising levels limitations, including a limited supply of Sustainable Carpet of carbon dioxide in the atmosphere. fossil fuels, high cost, and carbon dioxide Georgia Tech researchers are working to pollution,” says Andrei Fedorov, associ- Don’t call it “green” carpet; call it sustain- address this environmental challenge on ate professor of Mechanical Engineering able carpet. several fronts. and a lead researcher on the project. “We A new standard for assessing the environ- The single largest source of U.S. carbon wanted to create a practical and sustain- mental friendliness of carpet was announced at dioxide pollution is emissions from coal- able energy strategy for automobiles that the 2007 Greenbuild International Conference !red electric power plants. However, could solve each of those limitations, even- in Chicago. Approved by the American National present carbon capture technologies are tually using renewable energy sources and Standards Institute, the standard addresses expensive, and some require signi!cant in an environmentally conscious way.” chemicals and materials used in manufacturing amounts of energy to operate. If required Currently, his research team is develop- carpet, the energy used in production, the use at power plants, they would dramatically ing a fuel-processing device to separate the of recycled or bio-based content, methods of increase the cost of electricity. carbon from vehicle emissions and store it disposal and/or reuse, and the overall environ- A research team in Tech’s School of in the vehicle in liquid form. The captured mental performance of manufacturers. Chemical and Biomolecular Engineering carbon would be discharged at a fueling “The LEED (Leadership in Energy and has developed a low-cost, reusable mate- station, then shuttled to a processing plant Environmental Design) standards for buildings rial that could facilitate carbon dioxide where it could be transformed into liquid suggested that standards were an effec- capture from power plants and other fuel and reused. tive strategy for encouraging competition industrial sources. Produced with a one- and providing an objective way of evaluating step chemical process, this new material sustainability claims made in the marketplace,” has a high capacity for absorbing carbon says Matthew Realff, associate professor of dioxide and can be reused many times. Chemical and Biomolecular Engineering, who chaired the committee that developed the standard. “This new standard provides tremendous benefit to those decision makers who specify and purchase billions of yards of carpet annually in the United States,” explains Werner Braun, president of the Carpet and Rug Institute, a nonprofit trade association based in Dalton, Georgia. “The new unified standard assures those purchasers that they are select- ing environmentally preferable carpets.” A standard that enables consumers to choose the most sustainable products should encourage manufacturers and their suppliers to seek out or develop environmentally prefer- able processes, practices, power sources, and materials.

2008 ANNUAL REPORT 7 IBSI, David D. Flanagan Chair, and Geor- gia Research Alliance Eminent Scholar in RESEARCH Biomedical Engineering. “Needless to say, no one can analyze these massive amounts of data by hand. So, computer methods and mathematical models are needed to help us put all these pieces of informa- tion together in order to solve some of the grand challenges in biology. “The ultimate goal, which we can only see in the distant future, is to develop simulations of entire cell systems capable of predicting how a body (or even a spe- ci!c patient) will respond to a multitude of stimuli, medications, and environmental exposures and lead to chronic diseases like diabetes and cancer,” Voit says. IBSI will focus on three areas: under- standing the development of normal cells into cancer cells, exploring the inter- action between humans and microbes in the environment, and developing Pushing the Boundaries steward of the house. Green Habitats will enabling techniques for analyzing biologi- of Alternative Energy study and demonstrate the effectiveness of cal systems. As fossil fuel costs soar, attention is the house’s materials, solar panels, insula- increasingly turning to alternative tion, and heating and cooling systems. energy sources, long a focal point for “We are very grateful to have Green Putting Patients First Georgia Tech. Habitats’ assistance and vision for this While IBSI is a critical internal collabora- At the Center for Innovative Fuel Cell long-term project,” says Doug Allen, in- tion, Georgia Tech is also forging new and Battery Technologies in the Georgia terim dean of the College of Architecture. relationships with key external healthcare Tech Research Institute, researchers are “We have formed a true partnership in the organizations. For example, Georgia Tech, working to reduce cost and improve dura- pursuit of high-performance architecture Saint Joseph’s Health System, and Saint bility by solving the problems that cause and building.” Joseph’s Translational Research Insti- fuel cells to fail. Center Director Tom tute (SJTRI), a division of Saint Joseph’s Fuller identi!es the top durability prob- Health System, reached an innovative lems as chemical attack of the membrane, Improving Quality of Life agreement designed to move new treat- carbon corrosion, and platinum instability. through Medical Research ments, therapies, and products into “My philosophy is if we can really Applying engineering and scienti!c clinical use with patients more rapidly. understand the fundamentals of these research results to advance healthcare The agreements call for the $18.5 million failure mechanisms, then we can use that diagnostics and treatment has been a relocation and expansion of the SJTRI information to guide the development of hallmark of Tech’s research enterprise research facilities to Technology Enterprise new materials or we can develop system for quite some time. This focus has led to Park, a new bio-business park located approaches to mitigate these failures,” says the development of numerous technolo- adjacent to the Georgia Tech campus, and Fuller, also a professor in the School of gies and instruments that have dramati- collaboration between physicians and Chemical and Biomolecular Engineering. cally improved health outcomes. These researchers at Saint Joseph’s Hospital and Another key source of alternative energy breakthroughs have also allowed for the Georgia Tech faculty and students. is the sun, which totally powers a model collection of enormous amounts of data “The greatest roadblock to getting new home designed and built by an interdisci- on biological systems, leaving scientists therapies or devices from the research lab plinary team of students and faculty. The to ponder how to interpret this newfound to patients has been the silo approach to house was Tech’s entry in the U.S. Depart- information and apply it to living systems. research,” says Nicolas Chronos, president ment of Energy’s 2007 Solar Decathlon, in In response to this opportunity, Georgia which twenty universities from around the Tech has created the Integrative Bio- world competed to build the most energy- Systems Institute (IBSI) to explore new ef!cient solar house. The houses were as- technologies and methods to collect and sembled on the Mall in Washington, D.C., analyze these millions of pieces of biologi- for the competition, in which the Tech cal information in order to form a more Graduate Research Assistant Stacey Schutte works with a nitrogen cooler in a lab that focuses on bio- team ultimately placed sixth. complete picture of how life works and engineering and fluid mechanics. Graduate students Following the Decathlon, the College how the environment affects living things. Peter Crapo and Christiane Gumera work in the of Architecture appointed Green Habitats “In biology, we can now measure the Georgia Tech/Emory Center for the Engineering of Living Tissues, which is working to develop new Foundation Inc., a non-pro!t organiza- expression of 50,000 genes at a time,” tissue regeneration technologies to help address tion that promotes sustainable building, as says Eberhard Voit, founding director of the organ transplantation crisis.

8 GEORGIA INSTITUTE OF TECHNOLOGY RESEARCH

Brian Stone, associate professor in the College of Architecture, consulted with Atlanta’s High Museum of Art on the retrofitting of their roofs with trays of plants that increase the energy efficiency and visual appeal for the higher surrounding buildings. Stone’s research focuses on urban environ- mental phenomena with an emphasis on climate change and air quality. of SJTRI. “This relationship between Saint Joseph’s and Georgia Tech brings all the forces together—clinicians, patient care, biotechnology, bioengineering, bioscience, and entrepreneurial business—for cross collaboration and innovation that will move the process ahead much faster for the bene!t of patient care.” Phase one, an expanded 32,000-square- foot SJTRI facility in Technology Enter- prise Park, includes catheterization labs, an expanded vascular physiology lab, surgical suites, and additional research capabilities. Georgia Tech researchers will have access to the research facility for clinical trial activities. A number of research partnerships with Emory University are advancing patch should signi!cantly impact the way In addition, researchers at the Georgia healthcare detection and delivery as well, that other vaccines are delivered.” Tech Research Institute have developed a including a study on the use of micro- Another Emory partnership has resulted sensor system that continuously monitors needle patches for painless delivery of "u in the development of a new device that the air around persons prone to asthma vaccinations that received $11.5 million may allow patients to take a brief, inex- attacks. Worn in the pockets of a vest, the from the National Institutes of Health. pensive test that could be administered as new system could help researchers under- “A vaccine administered through a skin part of a routine yearly checkup at a doc- stand the causes of asthma attacks. patch would have a number of advan- tor’s of!ce to detect mild cognitive tages, including less discomfort to the impairment (MCI), often the earliest stage recipients, lower cost, and reduced pro- of Alzheimer’s disease. The device was duction time,” says Richard Compans, slated for commercialization in late 2008. professor of microbiology and immunol- Research conducted in the joint Tech/ ogy in the Emory School of Medicine. Emory Biomedical Engineering Depart- Yadong Wang, assistant professor in the Coulter “Potentially, individuals could administer ment has yielded a potentially promising Department of Biomedical Engineering at Georgia the vaccine to themselves, perhaps after strategy for encouraging the regeneration Tech and Emory University (right), and graduate student Christiane Gumera (left) have developed a receiving it in the mail.” of damaged central nervous system cells new strategy for neuron regeneration. “We expect that this research will known as neurons. The would lead to a better way of delivering the "u use a biodegradable polymer containing Researchers Mark Prausnitz (left) of Georgia Tech and Richard Compans of Emory University are lead- vaccine, which will allow more people a chemical group that mimics the neuro- ing efforts to develop a new way to deliver the flu who need it to receive the immunization transmitter acetylcholine to spur the vaccine using microneedles. in a convenient and effective way,” said growth of neurites, which are projections Mark Prausnitz, professor of Chemical that form the connections among neurons and Biomolecular Engineering at Tech. and between neurons and other cells. The “Beyond that, the possibility of replacing biomimetic polymers would then guide the a hypodermic needle with a microneedle growth of the regenerating nerve.

10 GEORGIA INSTITUTE OF TECHNOLOGY A LEGACY OF STRATEGIC GROWTH

THE VALUE OF GLOBAL PARTNERSHIPS

Leading the way in international engagement Collaborating with educational, research, and corporate partners around the world is a longstanding tradition at Georgia Tech. Tech’s most fully developed global platform is in , . Begun in the early 1990s as a master’s degree program, GT Lorraine now has a well-rounded graduate program in engineering, and the recent addition of student housing to the campus has paved the way for a year-round under- graduate program. Led by a Georgia Tech faculty member, GT Lorraine participates in dual-degree programs with other universities in France as well as Germany, Italy, and Russia. GT Lorraine also has developed research partnerships with other European universities and industries, as well as the French National Center for Scientific Research, Europe’s largest scientific research organization. As the pace of globalization has accelerated over the past decade, Georgia Tech has expanded its international presence by extending its own education and research platforms beyond Metz, while also extensively broadening the range of study abroad and exchange programs available to students.

Enhancing Academic Partnerships Last fall Georgia Tech’s Stewart School of Industrial and Systems Engineering launched the Institute’s !rst undergraduate dual-degree program with an international university, Monterrey Tech (ITESM) in Mexico. The program allows engineering students from ITESM to transfer to Georgia Tech during their third year. After completing the Industrial Engineering de- gree requirements at Tech, students return to ITESM to complete the degree require- ments there. The result is an engineering degree from ITESM and an Industrial Engineering degree from Georgia Tech. “I was fortunate to be in the !rst gen- eration of this new dual-degree program between ITESM and Georgia Tech,” says Alejandro Leyva, one of the !rst four “Georgia Tech has long worked with students the chance to experience !rst- students to come to Tech in 2007. “As key industry partners in Italy,” says Gary hand the new opportunities that come soon as I heard I was a potential candi- May, school chair of Electrical and Com- with globalizing education.” date for the program, I knew I wanted to puter Engineering. “This new af!liation Even further a!eld from Atlanta, plans participate. My decision was basically will afford students the opportunity to continue to move forward for a Georgia based on Tech’s No. 1 ranking in Indus- experience competitive and complemen- Tech campus in India. The government of trial Engineering.” tary approaches to engineering solutions the Indian state of Andhra Pradesh has On the other side of the Atlantic, in a cross-cultural environment.” offered land for the campus near the state Georgia Tech has partnered with two The master’s degree in computer science capital of Hyderabad, which is India’s leading Italian universities to offer dual emphasizes the development of comput- sixth largest metropolitan area with more master’s degrees in electrical and computer ing and networking applications and is than 6 million residents. The focus of engineering and computer science. Begun offered by Tech’s School of Computer Sci- the campus would be engineering and in the fall of 2008, they are the !rst dual ence and the School of Informatics at the research, with courses taught by tenure- graduate programs in these disciplines University of Trento in Trento, Italy. track faculty members from Tech. between American and Italian universities. “The College of Computing has had an For the master’s degree in electrical ongoing relationship with the University and computer engineering, Tech’s School of Trento and the Trentino region of Italy of Electrical and Computer Engineering for the last three years,” says Richard The first ITESM students to enroll in the dual degree program were (from left) Allam Garcia, Alejandro teamed with the School of Information DeMillo, a Computing faculty member Leyva, Patricio Bichara, and Hector Morales. Technologies at the Politecnico di Torino who served as the College’s dean from in Torino, Italy. 2002-2008. “We are providing these

2008 ANNUAL REPORT 11 Students in the dual degree Logistics and Supply Chain Management master’s pro- gram joined students from the Global Logistics Scholar- ship program for a tour of Norfolk Southern’s Whitaker Intermodal Terminal. The largest intermodal terminal east of the Mississippi River, it expedites the movement of containerized freight throughout the country.

PARTNERSHIPS Expanding Role for Research wine from the great producing regions to and Corporate Partnerships the United States,” says Bartholdi. In addition to international academic part- In this endeavor, the SCL team collabo- nerships, the Institute continues to form rated with the Commonwealth Science critical alliances with research agencies and Industrial Research Organization of and corporations. Melbourne, Australia; Ponti!cia Universi- A prime example is Georgia Tech Ire- dad Catolica de Chile of Santiago, Chile; land, established in 2006 by the Georgia and the Council of Science and Industrial Tech Research Institute and IDA Ireland, Research of Cape Town and Pretoria, the economic development agency of South Africa, to form the Wine Supply the Irish government, to help with the Chain Council. commercialization of research from the According to Bartholdi, beyond temper- nation’s universities. ature control, moving wine must account GT Ireland has attracted the attention for issues related to the timing of picking of visionary private donors who see the and crushing the grapes, fermentation, and Steve McLaughlin value of investing in a new research model bottling the wine. while learning from and helping shape one “By tracking hundreds of cartons from participates in of the great economic success stories in all over the world, we hope to piece to- the modern era: Ireland’s transformation gether a picture of this supply chain that is state’s visit to China from a relatively poor country to a world unique in scale and detail,” says Bartholdi. technology leader in one generation. “We will work with the wineries, carriers, International collaborations of all stripes “The Irish government has done an and distributors all along the supply chain are a vital concern to Steve McLaughlin, excellent job in promoting new technology to improve the care and ef!ciency with who became Tech’s first vice provost and making it very attractive to establish which the product is handled.” for International Initiatives last fall. A few development programs jointly with them,” Bartholdi plans to use what is learned months into his new job, McLaughlin found says Allen Ecker, executive vice president from the wine project to address similar himself aboard Delta Air Lines’ first direct of Scienti!c-Atlanta, Tech alumnus, and problems in the movement of vaccines and flight from Atlanta to Shanghai, China, with donor to GT Ireland. “Many companies other perishable medicines. a Georgia delegation that included Gov. such as Cisco, Microsoft, and Intel are Sonny Perdue. The delegation’s purpose now partnering with the Irish government was to establish an economic development and have facilities in Ireland.” office in Beijing for the state of Georgia. In a project that encompasses four “There were about forty people from continents, the Supply Chain & Logistics Atlanta—university people, industry Institute (SCL) in the Stewart School of The GT Ireland campus in Athlone, Ireland, is receiv- people, economic development people, Industrial and Systems Engineering is ing substantial private and government support local government officials—who went with for its mission of commercializing research from the governor and spent several days studying and working to improve temper- Irish universities. ature-controlled supply chains that stretch making China more aware of what’s going around the world. Leading the effort are on in Georgia,” says McLaughlin. “Part Professors John Bartholdi and Don Ratliff. of the trip was focused on research and “Our !rst project is devoted to the development, and how Georgia [can international supply chains that move develop partnerships].” Tech already works with both Peking Uni- versity and Tsinghua University in China’s capital city. The Institute is helping Peking University build its engineering program, and one of McLaughlin’s goals for the trip was to continue the development of Tech’s relationship with Tsinghua, which to date has been characterized largely by collabo- rations between individual professors. McLaughlin says both the United States and China are involved in network building. “The best universities in China want to be connected to the best universities in the world,” he says. “What those networks look like—what’s accomplished in those networks—everybody’s trying to figure out a model that works for them.”

PARTNERSHIPS 2008 ANNUAL REPORT 13 A LEGACY OF STRATEGIC GROWTH

THE IMPACT OF ECONOMIC DEVELOPMENT

Strengthening the state, region, and nation Georgia Tech opened its doors 120 years ago with a mission of helping to bring the state’s agrarian economy into the industrial age. Today, the Institute works to transform that industrial economy into an innovation economy. In addition to educat- ing the technological workforce of the twenty-first century and conducting research that drives innova- tion, Tech provides strategic support for both industry and government.

Services to Industry thousands of parts and storing them in a implementation efforts. By mid-2008, Georgia Tech’s Advanced Technology rack, from which the components needed the company had already improved its Development Center (ATDC) is widely for a particular truss could be gathered. on-time delivery rate to 84.1 percent from regarded as one of the nation’s top incuba- “We didn’t have a problem building the 77.1 percent in 2007. tors for "edgling high-tech businesses. trusses, but cutting all those components EII also helped U.S. Energy Sciences Over the past two decades, its companies was challenging,” says Lee Matthews, improve its production of high-quality, have generated revenues of more than operations manager for the facility. “I was energy-ef!cient products. When owners $12.7 billion and pro!ts of more than running high in overtime, and we even Cindi Hicks and Andy Loosberg moved $100 million. went as far as putting on a small second the company to Georgia four and a half The value of the services ATDC provides shift. We needed a better "ow.” years ago, their process for manufactur- is demonstrated by the fact that ATDC It was not uncommon to have as many ing energy-ef!cient commercial lighting companies have raised more than $1 bil- as 16,000 pieces cut and stored, waiting products was anything but ef!cient. lion in venture capital since 1999. More for assembly. Now that number is zero, “When we moved to Vidalia, we were than 110 companies have graduated from thanks to a continuous improvement able to acquire a building, but the manu- the incubator since ATDC was founded initiative instituted by the company with facturing process had never been designed,” in 1980. help from Georgia Tech’s EII. says Hicks. “Materials didn’t "ow from As of summer 2008, ATDC had more Management and front-line supervisors one end of the factory to the other, and we than forty companies in incubation—its completed EII’s lean training, learning to largest number ever—many of them based eliminate the overproduction caused by on research from Georgia Tech labs. Their traditional scheduling systems, manufac- Advanced Technology Development Center com- products and services ranged from bio- ture products based on customer demand, panies have raised more than $1 billion in venture technology to clean energy, from health- and utilize value stream mapping to guide capital since 1999. care to software and Internet applications. In addition to nurturing high-tech start-ups, Georgia Tech reaches out to small and mid-sized companies around the state, helping them implement innovative operating strategies. The Georgia Manu- facturing Survey, conducted by Georgia Tech’s Enterprise Innovation Institute (EII) and School of Public Policy, indicates companies that compete based on innova- tion enjoy higher returns on sales, pay better wages, and have less to fear from outsourcing. Universal Forest Products in Ashburn, Georgia, a manufacturer of wooden roof trusses used in construction, is a recent bene!ciary of EII’s expertise. Assembling a truss is a little like putting a puzzle together: many different parts must !rst be cut to the right size and shape, then placed into the proper location. Until recently, workers at the plant were cutting ECONOMIC 14 GEORGIA INSTITUTE OF TECHNOLOGY DEVELOPMENT With assistance from the Advanced Technology Devel- opment Center (ATDC) and Georgia Tech’s VentureLab, Qualtré is commercial- izing the next generation of motion sensors, further broadening their applicabil- ity in consumer electronics devices such as cellular handsets, personal naviga- tion devices, and gaming controllers. Qualtré is led by Founder and Chief Tech- nology Officer Farrokh Ayazi (left) and President and CEO Michael Slawson. Ayazi is also an associate professor in Georgia Tech’s School of Electrical and Computer Engineering. ECONOMIC DEVELOPMENT green infrastructure, economic devel- opment, transportation, and livability. The goals are to improve quality of life, preserve the subregion’s environment and cultural character, and strengthen the local economy for the short and long term. Another ongoing Tech research project monitors vehicle emissions from 420,000 vehicles a year at more than 60 sites in the Atlanta, Macon, and Augusta areas. Data is being gathered for at least 100 days a year over a period of 15 years to deter- mine whether the $80 million to $100 million Georgians pay for vehicle emission inspections and repairs each year is well spent. “Georgians spend a major chunk of change on inspections and repairs, so you want to make sure the inspections pro- had an overwhelming amount of inven- Transportation (GDOT) to help answer gram is working,” says Michael Rodgers, tory scattered everywhere.” these questions. a principal research scientist at the So Hicks and Loosberg sought the coun- The study will include a review of newly Georgia Tech Research Institute. “We’ve sel of Matt Oxley, an EII entrepreneur introduced toll collection technologies and found that it is indeed reducing vehicle outreach specialist charged with helping case study analyses of similar projects in emissions in the region. The state is invest- rural Georgia companies become more other states and abroad. The team will ing less than 1 percent of the cost of the innovative. Oxley helped the company also determine metro Atlanta preferences program to monitor it. So that’s a cost- completely reorganize its 70,000-square- through a series of focus groups. The re- effective solution.” foot plant, convert its assembly lines to sults will help guide GDOT and the State lean manufacturing concepts, and imple- Road and Tollway Authority of Georgia in ment software applications. the siting, evaluation, and implementation The results are impressive. Set-up times of future pricing strategies. have been reduced by 80 percent, the The CQGRD also conducted a study to Professors Catherine Ross and Randall Guensler are leading a research team examining the potential company’s ability to meet order deadlines assess the infrastructure of Hall County in of congestion pricing to reduce gridlock on metro has increased by nearly 60 percent, and northeastern metro Atlanta, where rapid Atlanta freeways. productivity has doubled with the same growth is being generated by proximity to Georgia Tech’s Center for Quality Growth and number of employees. Atlanta, the recreational opportunities Regional Development is studying ways to reduce afforded by Lake Lanier, and the availabil- congestion and improve Atlanta’s traffic flow. ity of moderately priced housing. Services to Government Findings and recommendations of the Recognizing that traf!c congestion is one study deal with the broad categories of of the most serious problems facing the Atlanta region, the Governor’s Conges- tion Mitigation Task Force recommended that congestion-reducing projects be given priority for transportation funds. But what is the best long-term strategy for congestion relief? Congestion pricing, also called value pricing or peak-period pricing, is gaining acceptance as a tool for reducing congestion and improving "ow on freeways, but will it have the intended effect? A Georgia Tech team, led by Professor Catherine Ross, director of the Center for Quality Growth and Regional Develop- ment (CQGRD) in the College of Archi- tecture, and Professor Randall Guensler, director of the School of Civil and Envi- ronmental Engineering Transportation Group, is undertaking a research effort funded by the Georgia Department of

16 GEORGIA INSTITUTE OF TECHNOLOGY A LEGACY OF STRATEGIC GROWTH

THE BONDS OF COMMUNITY

Being a good neighbor “Protecting and preserving our water taught the course with Institute Partner- Forging stronger ties with Georgia Tech’s supply is critical to our environment, ships’ Andrea Ashmore. closest neighbors was a high priority our economy, and our health,” says J. T. The course promoted both intellectual for Wayne Clough, who believed that a Rieves, regional vice president for The inquiry and active engagement. In addition healthier, more vibrant area surrounding Home Depot. “Simple tips and products, to working with neighborhood leaders, campus would bene!t both the Institute such as low-"ow products for the home, students were assigned reading (including and the community. can make a tremendous impact on the books by two Tech authors, Ron Bayor This guiding principle has spawned amount of water residents use. We are PG)54BOE-BSSZ,FBUJOHPG$JUZBOE numerous community-oriented initia- happy to help educate Atlantans on the Regional Planning) and written work tives, including a recent effort to promote importance of water conservation.” (analytical essays and re"ective jour- water conservation in four neighborhoods In addition, Georgia Tech’s Center for nal entries). contiguous to the Tech campus. Tech’s Education Integrating Science, Mathemat- Class projects included: Institute Partnerships of!ce is connecting ics, and Computing is now working with rB8FCTJUFGPSUIF&OHMJTI"WFOVF/FJHI- schools and neighborhood associations The Home Depot to adapt water conser- borhood Association; in the Centennial Place, English Avenue, vation information into a curriculum for rB4BUVSEBZZPVUIFOSJDINFOUQSPHSBN Home Park, and Midtown areas with six partner schools for the 2008-09 school GPSTUVEFOUTGSPN,FOOFEZ.JEEMF representatives from The Home Depot, year. The eventual goal is to make these School and Bethune Elementary School; who share expertise and direction on how curriculum materials available to schools and residents can save water—a high priority throughout Atlanta and the state. rBQMBZHSPVOEDPODFQUOPXCFJOHDPO- in a time of historic drought. The English Avenue neighborhood was sidered for construction by the English Presentations on conserving water were also the focus of another project, a special Avenue Development Corporation. made last spring to local neighborhood topics course in the Georgia Tech Atlanta Mayor Shirley Franklin and and tenant associations, parent-teacher Honors Program titled “Semester in the Fulton County Commission Chairman association meetings, and in the class- City: Engaging English Avenue.” John Eaves spoke to the class about rooms of participating schools. Par- The course’s primary objectives were how decisions by local and state leaders ticipants received complimentary Home “to understand the community on its own contribute to the improvement of econo- Depot gift cards. terms, but also study it within the larger mically depressed areas. Eaves offered “Georgia Tech’s mission is not only to context of the city of Atlanta, and to !nd examples of how lawmakers in Fulton set an example for environmental stew- ways to work on some doable and sustain- County use legislation and funding to ardship, but also to make sure that our able service projects that will bring us into impact directly and indirectly the lives of neighbors have access to the resources partnership with the people of the neigh- county residents in neighborhoods like they need to make conservation a way of borhood,” says Gregory Nobles, professor English Avenue. life,” says Institute Partnerships Director of History, Technology, and Society (HTS) Ashmore is also coordinating an ongo- Andrea Ashmore. and director of the Honors Program, who ing effort to encourage stakeholders in the Centennial Place neighborhood near campus to help improve the appearance of the area and to reduce crime. Intensive efforts began last fall to increase the size of the Centennial Place Stakeholders group and strengthen crime reduction through a more coordinated approach from the Atlanta Police and Georgia Tech Police departments as well as private secu- rity personnel of business and non-pro!t stakeholders. The change was especially dramatic in the categories of burglary and auto theft, where reported crimes fell by more than 60 percent in a seven- month period.

Community service is a high priority for Georgia Tech students such as Elise Mendenhall, an under- graduate Civil and Environmental Engineering major. Mendenhall is pictured painting a house as part of a local Habitat for Humanity project.

2008 ANNUAL REPORT 17 Georgia Tech student Daniel Warren helps Jamal Young with some computer work at Fickett Elementary School during TEAM Buzz Community Service Day. Tech student Sumaiya Khan (below) tutors a Bethune Elementary student. COMMUNITY Bangladesh, where "ooding has worsened. The pilot forecasting system, designed by scientists at the National Center for Atmospheric Research (NCAR) and Georgia Tech, uses a combination of weather forecast models, satellite observa- tions, river gauges, and new hydrologic modeling techniques. The system is part of a larger initiative, known as Climate Forecast Applications in Bangladesh, to improve "ood and precipitation warnings in the low-lying nation. Peter Webster, professor of Earth Governor honors and Atmospheric Sciences, is the principal investigator of the overall initiative. The faculty, staff for one- to ten-day forecasts are delivered directly, when possible, to more than role in charitable 100,000 people living in "oodplains of the Brahmaputra and Ganges rivers. campaign Serving the Broader ‘Community’ They will be distributed more widely in Georgia Gov. Sonny Perdue honored While strengthening the local community coming years. is a critical goal for some students, others Webster and NCAR scientist Thomas Georgia Tech faculty and staff last have a much broader concept of the term Hopson have provided forecasts to Ban- spring for their role in the 2007-08 state “community.” Marco Gutierrez, a PhD gladeshi agencies since 2003, but the fore- charitable campaign. During an awards student in Industrial and Systems Engi- casts often have not reached rural regions, luncheon, the Institute received both the neering, worked with CARE (Cooperative where many residents lack radios and even Governor’s Award for the largest increase for Assistance and Relief Everywhere) to electricity. In 2007, the nonpro!t Asia in contributions and the Governor’s Cup improve humanitarian relief logistics. Disaster Preparedness Center established a for best performance among organizations Early in his PhD program, Gutierrez network of organizations to distribute the with 1,001 to 9,000 employees. forecasts directly to people in !ve districts heard that Industrial Engineering Profes- “Compared to the prior year, our con- COMMUNITY sor John Vande Vate was interested in along the two rivers. tributions increased 42 percent, or more humanitarian relief logistics. Vande Vate than $88,000—$299,839 in 2007 and connected Gutierrez with CARE USA’s Atlanta-based Emergency Unit, which sup- $211,089 in 2006. In addition, the number ports emergency responses in more than of donors nearly doubled from 766 to sixty-!ve countries. 1,528,“ says Student Center Director Initially, Gutierrez worked with the Rich Steele, coordinator of the Institute’s senior logistics advisor for CARE’s Emer- campaign. “[We] averaged nearly $55 per gency Unit to understand the supply chain employee, or $196 per donor.” Career processes of emergency response situa- Services Director Ralph Mobley served as tions. Later, he supported a team from campaign co-coordinator. Vande Vate’s class on transportation and Overall, the Institute raised nearly supply chain systems, which conducted $300,000 for 1,000 state-based charities a project for CARE. The student team in less than a month. examined the feasibility of designing both an emergency shelter and its supporting “The success this year came primarily supply chain that could be implemented from the ninety-plus departmental coordi- within forty-eight hours after the onset of nators who worked diligently for almost six a disaster. weeks to encourage participation in their “In working with CARE, I have had the respective departments,” Steele says. opportunity to see the in"uence that our work has had in starting to transform its PhD student Marco Gutierrez has worked with CARE supply chain practices,” says Gutierrez. USA to support transportation and supply chain “It is very gratifying to realize that the systems for emergency response situations. potential impact of our work can translate Professor Peter Webster is leading an effort to into decreased human suffering around improve long-range precipitation forecasts in flood- the world in addition to dollars saved.” prone Bangladesh. While Gutierrez focuses on responding to disaster, another Tech project antici- pates catastrophic "ooding and warns thousands of vulnerable residents in

2008 ANNUAL REPORT 19 ENROLLMENT AND DEGREES

TOTAL HEADCOUNT ENROLLMENT NEW DEGREES SINCE 1994

HEADCOUNT FY 1994 FY 2008 PERCENT Bachelor’s ENROLLMENT INCREASE/ (DECREASE) Biochemistry Biomedical Engineering Undergraduate 9,181 12,565 37% Computational Media Graduate 3,664 6,177 69% Economics & International Affairs Environmental Engineering Total 12,845 18,742 46% Global Economics & Modern Languages Full-time Equivalent (FTE) Enrollment 12,705 17,832 40% International Affairs & Modern FY 1994 FY 2008 Languages Materials Science and Engineering* Polymer and Fiber Engineering* Public Policy COMPARISON OF TOTAL COMPARISON OF DEGREES HEADCOUNT ENROLLMENT AWARDED BY LEVEL FY 1994 AND FY 2008 FY 1994 AND FY 2008 Master’s Bioengineering 20,000 3,000 Bioinformatics Biomedical Engineering 18,000 Building Construction & Facility 2,500 Management 16,000 Business Administration* Business Administration in 14,000 2,000 Management of Technology 12,000 Computational Science and 1,500 Engineering 10,000 Digital Media* Electrical & Computer Engineering 8,000 1,000 Global Executive MBA 6,000 Human-Computer Interaction 500 Industrial Design 4,000 Information Security International Affairs 2,000 0 Bachelor’s Master’s Doctoral International Logistics 0 Materials Science and Engineering* FY 1994 FY 2008 Medical Physics* Music Technology Paper Science & Engineering Prosthetics & Orthotics COMPARISON OF HEADCOUNT NEW DEGREE PROGRAMS Quantitative & Computational ENROLLMENT BY LEVEL 1994-2008 Finance FY 1994 AND FY 2008 20 Doctoral 14,000 Algorithms, Combinatorics, 18 & Optimization

12,000 16 Applied Physiology Bioengineering 14 Bioinformatics 10,000 Biomedical Engineering 12 Computational Science and Engineering Digital Media 8,000 10 Electrical & Computer Engineering 8 History & Sociology of Technology 6,000 & Science* 6 Human Centered Computing International Affairs, Science, 4,000 4 and Technology 2 Materials Science & Engineering 2,000 Operations Research 0 Paper Science & Engineering Bachelor’s Master’s Doctoral 0 Public Policy Undergraduate Graduate Robotics

*Updated programs

20 GEORGIA INSTITUTE OF TECHNOLOGY 2007-2008 TIMELINE

Georgia Tech is the first university U.S. News & World Report ranks MIT’s Technology Review maga- CNBC films an episode of “Mad campus to host RoboCup, the Georgia Tech seventh among zine names Georgia Tech Money” with Jim Cramer in world’s premier robotics com- the nation’s public universities, researchers Karen Liu and the Jennings Courtyard at the petition with more than 1,700 the highest ranking in Institute Xudong Wang to its list of the Management Building—part of students and faculty from 37 history. world’s top innovators under the the hit stock-picking show’s “Back countries participating. age of 35. to School” college tour.

Georgia Tech’s fall enrollment The Georgia Tech Glee Club per- exceeds 18,000 for the first time forms at Hi-Fi Buys Amphitheatre in Institute history. The increase with Country Music Association is attributed largely to higher Entertainer of the Year Kenny retention and growth in graduate Chesney. enrollment.

Seven Tech students are selected South Korea’s Woosong Univer- Electrical and Computer as finalists in Fresh Wood, sity names John E. Endicott, pro- Engineering Professor Steve a national student furniture fessor in the Sam Nunn School of McLaughlin is named Tech’s first competition. International Affairs and director vice provost for International of the Center for International Initiatives and will provide leader- Strategy, Technology, and Policy, ship and strategic direction for Krishan Ahuja, Regents’ Profes- as its next president and vice Tech’s expanding international sor in the Guggenheim School chancellor. relationships and study abroad of Aerospace Engineering, is and exchange programs. appointed director and general Georgia Tech is named the manager of Georgia Tech Ireland, top overall producer of African which helps companies on both Mechanical Engineering Profes- American engineers in the United sides of the Atlantic bridge the sor Ray Vito becomes Tech’s first States by Diverse: Issues in gap between academic discovery vice provost of Graduate and Higher Education magazine. and commercial success. Undergraduate Studies.

July August September October

Women’s tennis All-American Sting 1, an autonomous Porsche Bonnie Heck Ferri, professor A dedication ceremony opens Kristi Miller, golf All-American Cayenne designed by Tech and associate chair for graduate Technology Enterprise Park Roberto Castro, and swimming researchers, is one of thirty-five affairs in the School of Electrical (TEP), an eleven-acre complex standout Ofer Finkler are named vehicles to advance to the and Computer Engineering, at North Avenue and Northside 2007 Academic All-Americans by National Qualifying Event of the receives the IEEE Education Drive affiliated with Georgia Tech. ESPN The Magazine. Defense Advanced Research Society’s 2007 Hewlett-Packard/ TEP provides a specialized work Projects Agency’s (DARPA) Urban Harriet B. Rigas Award. environment geared toward Challenge. second-stage biotechnology start-up companies. The National Institutes of Health awards more than $31 million over five years to a partnership Tech receives approval for an of Atlanta academic, research, Executive MBA in Management and healthcare institutions— of Technology aimed at rising including Georgia Tech—to accel- professionals in tech-heavy fields. erate the translation of research discoveries into healthcare Provost Gary Schuster, Senior innovations for patients. The Office of Human Resources Vice Provost for Research and announces a flexible work Innovation Mark Allen, and Me- Georgia Tech implements the GT policy that allows supervisors and chanical Engineering Professor Emergency Notification System, WREK is named “Best Overall managers to approve telecom- Paul Neitzel give expert testi- which allows urgent messages Radio Station” in Creative Loaf- muting, compressed work weeks, mony before two subcommittees to be distributed quickly to stu- ing’s Best of Atlanta 2007 issue. flexible start and end times, and of the U.S. House Committee on dents, faculty, and staff by e-mail, job sharing. Science and Technology. voice mail, and text messages.

President Wayne Clough and IBM Mark Allen is named senior CEO Sam Palmisano are honored vice provost for Research and by the Council on Competitive- Innovation, a position in which he ness for co-chairing the Council’s will be instrumental in setting the National Innovation Initiative, Institute’s research and economic which developed a national action development agenda and strate- agenda to bolster U.S. competi- gic direction. tiveness and innovation.

2008 ANNUAL REPORT 21 Elliot Moore, assistant professor U.S. Naval Academy football Georgia Tech ranks No. 12 for in- A new interdisciplinary PhD pro- of Electrical and Computer coach Paul Johnson accepts the state students in Kiplinger’s “100 gram in Computational Science Engineering at Georgia Tech head football coaching position at Best Values in Public Colleges,” up and Engineering is announced. Savannah, receives a Presidential Georgia Tech. Johnson coached from No. 13 in 2007. Early Career Award for Young five seasons at Georgia Southern Nancey Green Leigh, professor of Scientists and Engineers University (62-10), winning back- City and Regional Planning in the The first annual campus-wide (PECASE), the highest honor to-back 1-AA National Champion- College of Architecture, provides Data Cleanup is conducted bestowed by the U.S. govern- ships in 1999 and 2000. congressional testimony on the with the goal of developing a ment on scientists and engineers unintended consequences of the campus culture that minimizes beginning their careers. Comprehensive Environmental the electronic storage of sensi- Response, Compensation, and tive information and protects it Liability Act and how brownfields rigorously. affect prospects for urban revitalization.

“Flock,” the newest audience- participatory work composed Four Georgia Tech research by Assistant Professor of Music scientists—Yuhong Fan, Melissa Jason Freeman, premieres at Kemp, Francesca Storici, and Miami’s Carnival Center for the Ming Yuan—are among twenty- Performing Arts. nine Georgia Cancer Coalition Tech researchers are part of a Distinguished Cancer Scholars three-continent, multi-organiza- selected in 2008. Each is funded tional effort dubbed “Operation at $50,000 annually for five Jupiter” that successfully identi- years to pursue the most promis- fies and shuts down manufactur- ing areas of cancer research. ers who were flooding Southeast Asia with ineffective counterfeit anti-malarial drugs.

November December January February

Four Georgia Tech professors are Professor William Wepfer is “Icarus,” the solar-powered house Ken Paulson, editor and senior elected Fellows of the American named the Eugene C. Gwaltney that placed sixth in the U.S. vice president of USA Today Association for the Advancement Jr. Chair of the School of Department of Energy’s Solar and USA Today.com, delivers a of Science: Judith Curry (Earth Mechanical Engineering, replac- Decathlon in Washington, D.C., campus address on “Rebooting and Atmospheric Sciences), ing longtime chair Ward Winer, opens for tours on the south lawn America: News for a New Genera- Randall Engle (Psychology), who retired after serving on the of the West Architecture Building. tion” as part of Finding Common Cheryl Leggon (Public Policy), Tech faculty since 1969. Wepfer Ground, a student initiative that and Rick Trebino (Physics). had most recently served as seeks to include diverse voices in Tech’s vice provost for Distance an ongoing campus dialogue. Learning and Professional The Institute receives approval Education. “Journalism 3G: The Future of for the nation’s second doctoral Technology in the Field,” hosted degree in robotics. The program by the Graphics, Visualization, & will encompass mechanisms, Usability Center, brings together controls, perception, autonomy, seasoned news correspondents and artificial intelligence. with computer scientists and technology and media executives to discuss how new technologies might alter the news business in the future.

A team of graduate students from Georgia Tech and Emory Tech is named to the 2007 University places second in the President’s Higher Education Idea to Product Global Competi- Community Service Honor Roll in tion with a plan to commercial- recognition of its contributions ize technology enabling more to the Gulf Coast following Hur- accurate cancer diagnosis. ricane Katrina.

22 GEORGIA INSTITUTE OF TECHNOLOGY G. Wayne Clough is selected Students from ten universities All-American Amanda McDowell The naming of the G. Wayne to be the twelfth secretary of come to the Tech campus for the becomes the first Yellow Jacket Clough Undergraduate Learning The Smithsonian Institution in National Idea-to-Product Competi- to win an individual national cham- Commons is approved. Ground- Washington, D.C. and announces tion for Social Entrepreneurship. pionship in tennis at the NCAA breaking is expected in late 2008 he will step down on June 30 Georgia Tech’s entry is a Tongue Singles Championships. on the 230,000-square-foot, after fourteen years as president Drive System that can be used $85 million facility, which will be of Georgia Tech. to access a computer, operate located next to the Library and a powered wheelchair, or control A campus memorial service encompass science laboratories, the user’s environment. honors the memory of John classrooms, undergraduate Patrick Crecine, Georgia Tech’s academic services, and an ninth president, who died April information commons. 28. Crecine, 68, served as Tech president from 1987-1994. The Apartments are renamed the John Patrick Crecine Residence Hall in his memory. Four Tech faculty members receive fellowships from the Alfred P. Sloan Foundation: Adam Kalai (Computing), Nick Feamster Regents’ Professor of Industrial (Computing), King Jordan (Biol- and Systems Engineering Donald Ratliff joins the National Science ogy), and Dan Breznitz (Interna- Catherine Murray-Rust is tional Affairs). Foundation (NSF) Advisory Com- mittee for the Office of Polar appointed dean of Libraries. Programs, which directs NSF Most recently, Murray-Rust was Georgia Tech receives the 2008 funding for basic research and library dean at Colorado State American Forest and Paper operational support in the Arctic University, where she oversaw Association College and Univer- and the Antarctic. Ratliff will offer five facilities with a staff of 100. sity Recycling Award for recycling his expertise in the area of supply Murray-Rust succeeds Richard 376 tons of paper last year. chain and logistics. Meyer, who retired over the summer.

March April May June

The Ivan Allen College of Liberal Interim Dean of Computing Alan Balfour is named dean of the ESPN the Magazine names Yellow Arts presents media entrepreneur James D. Foley is elected to the College of Architecture, succeed- Jacket tennis standout Kristi and philanthropist Ted Turner with National Academy of Engineering. ing the late Thomas D. Galloway. Miller as its At-Large Academic the 2008 Ivan Allen Jr. Prize for Foley also receives the 2008 All-American of the Year. Miller, Progress and Service. Distinguished Professor Award, who graduated from Georgia the highest honor Georgia Tech Tech in four years with a 4.0 GPA bestows on faculty members. in History, Technology, and Society, earned the No. 1 The Georgia Tech Glee Club per- national ranking in singles during forms at Carnegie Hall, then heads her career and led the Yellow for England, Scotland, and Wales Jackets to an NCAA Title in 2007. for a ten-day tour.

Douglas Allen, interim dean of the As gasoline prices hit record The Klaus Advanced Computing College of Architecture, receives In conjunction with Earth Day, levels, Georgia Tech begins a Building, home to the College the Governor’s Award for Historic Georgia Tech celebrates Think vanpool program that matches of Computing and the School of Preservation Stewardship in rec- Green Week, an effort to educate employees and students who live Electrical and Computer Engi- ognition of his efforts to preserve the campus community on envi- in the same geographic areas. neering, receives Leadership in the College’s buildings. ronmental awareness and renew Riders contribute to the operat- Energy and Environmental Design its commitment to sustainability. ing cost of the vans through a (LEED) Gold certification. The monthly fee. The women’s tennis team and Management Building received Silver certification in 2003. head coach Bryan Shelton are The Wallace H. Coulter Depart- honored by the Georgia General ment of Biomedical Engineering The Athletic Association begins Assembly and Gov. Sonny Purdue at Georgia Tech and Emory using solar breakers and photo- for winning their third consecutive University—the nation’s first joint cells at Bobby Dodd Stadium, Atlantic Coast Conference title, academic department between a conserving energy by reducing the National Team Indoor Cham- public and a private university— use of the lights during the day. pionship, and the NCAA Women’s celebrates its tenth anniversary. Tennis title. Provost and Vice President for Tech requests all departments Academic Affairs Gary Schuster and students to turn off the lights is appointed interim president, in their offices and dorm rooms effective July 1. during Earth Hour on March 29.

2008 ANNUAL REPORT 23 A LEGACY OF STRATEGIC GROWTH

IN APPRECIATION

The spring of 2008 marked a time of major transition as Georgia Tech bade farewell to longtime President G. Wayne Clough and Executive Vice President for Administration and Finance Robert K. Thompson. These two visionary and dynamic leaders literally reshaped the Tech campus and brought the Institute into the twenty-first century.

G. Wayne Clough Clough’s expertise also gave Tech a thinking and determination produced much higher pro!le in Washington, D.C. that transformation. The fourteen-year Appointed by the President to the Presi- The vibrancy that now characterizes the tenure of President dent’s Council of Advisors on Science and once blighted sector of G. Wayne Clough Technology in 2001 and to the National occupied by Technology Square is perhaps was a genuinely Science Board in 2004, he became the the most illustrative example of Thomp- transformative era only person to serve simultaneously on son’s efforts. Five years after its opening, for Georgia Tech. A both bodies. Technology Square has not only provided Georgia native and Georgia Tech’s success during the past a dynamic new environment for students the !rst alumnus fourteen years is inextricably linked with to learn, work, and play, but has also to be president, Wayne Clough’s passion, drive, and ability served as a catalyst for extensive redevel- Clough demon- to articulate and realize an inspiring vision opment in the adjacent areas of Midtown. strated a unique ability to move the Insti- of Georgia Tech’s future. The Tech com- “What distinguishes Bob is his open- tute forward on all fronts simultaneously. munity wishes him well in his new role as ness to new ideas, his broad knowledge of On the academic front, Clough’s leader- secretary of The Smithsonian Institution. what it takes to succeed, and his willing- ship improved the quality of the student “Georgia Tech is one of our state’s great- ness to help others improve and grow,” body while simultaneously increasing est assets, and Wayne Clough has been an says former President Wayne Clough. enrollment. The undergraduate experience exemplary leader of his alma mater,” says “Bob is one of the top people in his busi- was energized, and innovative interdisci- P. Russell Hardin, president of the Robert ness and he has been one of the chief fac- plinary degrees made the Institute more W. Woodruff Foundation. “He was the tors in Georgia Tech’s rise to prominence well-rounded. right man at the right time for Tech.” as one of the nation’s top universities.” The research enterprise more than doubled during his tenure, as Georgia Tech moved increasingly into emerging interdisciplinary !elds. Robert K. Thompson A civil engineer by profession, Clough more than doubled the square footage of When Executive the campus, overseeing the construction of Vice President for striking, innovative clusters of buildings Administration and surrounded by beautiful landscaping. 'JOBODF3PCFSU, Environmental sustainability became a Thompson arrived major theme, not only in the curriculum at Georgia Tech in but also in the operation of the campus. 1995, the campus Perhaps Clough’s most salient talent was preparing for was his ability to forge partnerships and the single most align resources across organizations. high-pro!le event in Close to home, he spearheaded a unique its history: serving as the Olympic Village partnership with Emory University to for the 1996 Centennial Olympic Games. pursue education, research, and economic As Thompson assumed responsibility development in biotechnology and worked for completing the construction and with adjacent neighborhoods to invigorate renovation required for the Tech campus the areas surrounding campus. Farther to host the world, he soon realized the a!eld, he promoted strategic international potential of the Olympic facilities to be research and education platforms and a catalyst for an even bolder reshaping partnerships that have made Tech one of of the century-old campus. During the the world’s few truly global universities. next thirteen years, his visionary

24 GEORGIA INSTITUTE OF TECHNOLOGY ADMINISTRATION OF THE GEORGIA INSTITUTE OF TECHNOLOGY

Gary B. Schuster James D. Foley Interim President, Provost, Interim Dean and Vice President College of Computing for Academic Affairs Don P. Giddens Mark G. Allen Dean Senior Vice Provost College of Engineering Research and Innovation Sue V. Rosser Anderson D. Smith Dean Senior Vice Provost Ivan Allen College of Liberal Arts Academic Affairs Steven R. Salbu Nelson C. Baker Dean Vice Provost College of Management Distance Learning and Professional Education Paul L. Houston Dean H. Wayne Hodges College of Sciences Vice Provost Enterprise Innovation Institute Catherine Murray-Rust Dean and Director Jack R. Lohmann Libraries Vice Provost Institutional Development Steven G. Swant Executive Vice President Steven W. McLaughlin Administration and Finance Vice Provost International Initiatives Stephen E. Cross Vice President and Director Raymond P. Vito Georgia Tech Research Institute Vice Provost Graduate and William D. Schafer Undergraduate Studies Vice President Student Affairs Alan H. Balfour Dean Barrett H. Carson College of Architecture Vice President Development A LEGACY OF STRATEGIC GROWTH

ANNUAL REPORT 2008

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FINANCIAL REPORT 2008 Message from the Executive Vice President for Administration and Finance

Cash Flows. It is important to note that and Thompson led Georgia Tech through GASB treats state appropriations as “non- a period of dramatic and highly strategic operating income” rather than “operating growth in both the size and stature of the income,” a presentation requirement that Institute. Their contributions to the success makes it appear that Georgia Tech and of Georgia Tech are highlighted in tributes other public colleges and universities have that appear on page 24 of the President’s an “operating loss” since state appropria- Annual Report. tions are not considered operating income. This Annual Financial Report highlights A full picture of the year’s operations some of the end results of the strategic can be seen from the “bottom line” of the visioning, teamwork, dedication, and focus Statement of Revenues, Expenses, and of the many Georgia Tech faculty, stu- Changes in Net Assets. GASB standards dents, staff, and supporters on and off the also require the discrete reporting of campus. Efforts to improve the Institute’s affiliated organizations in the Institute’s capital infrastructure and administrative audited Financial Statements. For this processes and systems have touched all unaudited Annual Financial Report, affili- departments and employees of the cam- ate information is included in the notes. pus, and enhanced the achievement of Note 1 to the financial statements rec- academic goals and plans. The Institute This Fiscal Year 2008 Annual Financial ognizes the significant contributions of continued to receive good audit reports Report reflects the continued commitment six separately incorporated cooperative with no major findings in the many federal of the Georgia Institute of Technology organizations to the annual operation and and state audits conducted annually. Best administration to provide an annual com- performance of the Georgia Institute of practice programs continue to be empha- pilation of the Institute’s financial position Technology. These six cooperative orga- sized in business and finance operations and performance, thereby documenting nizations provide the means and support throughout the campus. Special efforts the growth and health of the Institute over to build facilities and purchase equip- have continued to enhance information time for its many benefactors, constitu- ment; to receive and invest contributions; security in all business areas and to protect ents, friends, and supporters. It presents to perform sponsored research and ser- Institute assets from external intrusion. the Institute’s general purpose unaudited vices and license intellectual property; to The Institute’s physical development con- financial statements and accompanying facilitate technology transfer and economic tinues to evolve with new construction, footnotes for the Fiscal Year 2008 end- development; to provide programs and infrastructure, renovations, and landscape ing June 30, 2008. It should be noted facilities for intercollegiate athletics; and to improvements focused on strategic plans that the Georgia Institute of Technology inform and promote alumni interest in the and sustainable development. FY2008 is one of the thirty-five (35) institutions Institute. Together they add significantly to has been another year of major progress that comprise the University System of Institute assets and revenues for programs toward the Institute’s mission to be the Georgia governed by the Board of Regents. and services, and ultimately enhance the defining technological university of the The Institute’s financial statements are Institute’s performance of its mission. twenty-first century. audited annually by the State of Georgia This Annual Financial Report demon- Employees in Administration and Department of Audits in its annual audit strates the commitment and the progress Finance and throughout the academic and of the University System. Their audited Georgia Tech has made in its quest to other major divisions of the Institute made financial statements will be available for become the defining technological univer- significant contributions to the perfor- review at “[email protected].” sity of the twenty-first century. This quest mance highlighted in this Annual Financial The Fiscal Year 2008 financial report for includes a campus-wide effort to build an Report, and I wish here to acknowledge the Institute incorporates Governmental administrative, support, and capital asset and praise their efforts to move the Accounting Standards Board (GASB) infrastructure equal to that task while Institute forward in FY2009. A great uni- Statements 34, 35, and 39, first required emphasizing human values that lie at the versity is characterized by disciplined peo- in FY2004, to enhance the understanding core of the educational mission of ple engaged in disciplined thought leading of the following three groups of financial the Institute. to disciplined action, an apt description of statement users: Fiscal Year 2008 marked the fourteenth the Georgia Tech team. A special thanks year of significant Georgia Tech accom- goes to members of the Administration r5IPTFUPXIPNHPWFSONFOUJTQSJNBSJMZ plishments under the leadership of and Finance management team listed on accountable (citizens) President G. Wayne Clough, who departed the facing page. This team continues to r5IPTFXIPEJSFDUMZSFQSFTFOUDJUJ[FOT his alma mater in June to become secretary play key leadership roles in the success of (legislative and oversight bodies) of The Smithsonian Institution. Provost the Institute. r5IPTFXIPMFOEPSQBSUJDJQBUFJOUIF Gary B. Schuster—who served as dean of lending process (investors & creditors) the College of Sciences for twelve years— Sincerely, is serving as interim president while the Three basic financial statements are search for a new president is under way. presented: Statement of Net Assets (the In addition, Robert K. Thompson retired Balance Sheet); Statement of Revenues, from the position of executive vice presi- Steven G. Swant Expenses, and Changes in Net Assets dent for Administration and Finance after Executive Vice President (the Income Statement); and Statement of thirteen years with the Institute. Clough Administration and Finance ADMINISTRATION GEORGIA INSTITUTE OF TECHNOLOGY STATEMENT OF NET ASSETS AND FINANCE (dollars in thousands) Primary Government Primary Government Component Units June 30, 2007 June 30, 2008 June 30, 2008 (audited) (unaudited) (unaudited) Steven G. Swant ASSETS Executive Vice President for Current Assets Administration and Finance Cash and Cash Equivalents $100,953 $52,021 $76,195 Short-term Investments 135 144 6,792 Rosalind R. Meyers Accounts Receivable, net Associate Vice President for Receivables—Federal Financial Assistance 2,001 4,521 Auxiliary Services Receivables—State General Appropriations Allotment Charles G. Rhode Receivables—Other 22,655 13,753 36,503 Associate Vice President Leases Receivable 6,461 for Facilities Pledges Receivable 5,517 Due from Component Units 33,683 72,822 437 Due from Primary Government Joel E. Hercik Inventories 293 322 8 Associate Vice President for Prepaid Items 12,174 42,441 6,192 Financial Services Notes and Mortgages Receivable 1,235 Other Assets 63,239 Total Current Assets 171,894 186,024 202,579 Barry Edward “Chuck” Donbaugh Associate Vice President for Noncurrent Assets Noncurrent Cash - - 36,093 Human Resources Due from Component Units 89,144 Due from Primary Government John K. Mullin Investments (Including Real Estate) 61,280 63,531 1,589,331 Associate Vice President and Notes Receivable, net 8,722 9,396 Associate Vice Provost for Leases Receivable 169,327 Pledges Receivable 8,820 Information Technology and Other Assets 82,658 Chief Information Officer Capital Assets, net 1,261,605 1,420,414 252,127 Total Noncurrent Assets 1,331,607 1,493,341 2,227,500 Phillip W. Hurd Director of Internal Auditing TOTAL ASSETS 1,503,501 1,679,365 2,430,079 LIABILITIES Randy A. Nordin Current Liabilities Chief Legal Advisor Accounts Payable 19,456 19,507 25,493 Salaries Payable 938 1,180 JulieAnne Williamson Benefits Payable 169 307 Contracts Payable 877 1,930 Acting Executive Director of Deposits 23,435 20,557 8,421 Organizational Development Deferred Revenue 14,213 15,245 44,189 Other Liabilities 3,659 3,504 3,747 John Majeroni Deposits Held for Other Organizations 10,310 13,672 Executive Director of Due to Component Units 437 Due to Primary Government 72,822 Real Estate Development Current Portion of Long-term Debt 12,199 18,143 79,022 Compensated Absences (Current Portion) 17,049 18,437 472 Patrick J. McKenna Total Current Liabilities 102,305 112,482 234,603 Executive Director for Noncurrent Liabilities Affiliated Organizations Due to Component Units 89,144 Due to Primary Government Teresa Crocker Lease Purchase Obligations (Noncurrent) 397,770 509,595 95,587 Deferred Revenue (Noncurrent) Director, Security and Police and Other Noncurrent Liabilities 5,619 5,425 668,482 Compensated Absences (Noncurrent) 14,428 14,846 Jane-Allen Shope Total Noncurrent Liabilities 417,817 529,866 853,213 Executive Secretary to the Executive Vice President TOTAL LIABILITIES 520,122 642,348 1,087,816 NET ASSETS Invested in Capital Assets, net of related debt 851,635 892,894 8,685 Restricted for Nonexpendable 53,099 47,864 409,731 Expendable 30,748 27,544 495,608 Capital Projects 49,600 66,196 12,605 Unrestricted (1,704) 2,519 415,633

TOTAL NET ASSETS 983,378 1,037,017 1,342,262

Cover image: Exterior of Marcus Nanotechnology Building GEORGIA INSTITUTE OF TECHNOLOGY STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS (dollars in thousands) Primary Government Primary Government Component Units June 30, 2007 June 30, 2008 June 30, 2008 (audited) (unaudited) (unaudited) REVENUES Operating Revenues Student Tuition and Fees (Net of Allowance for Doubtful Accounts) $150,862 $161,888 Less: Scholarship Allowances 30,308 26,738 Grants and Contributions 72,212 Endowment Income (Per Spending Plan) 4,880 Federal Appropriations Grants and Contracts Federal 271,377 287,999 State 14,459 17,237 Other 145,132 149,509 Sales and Services 19,984 23,942 34,107 Rents and Royalties 1,328 1,254 59,095 Auxiliary Enterprises Residence Halls 40,453 49,249 Bookstore 1,208 1,902 Food Services 16,550 16,943 Parking/Transportation 12,328 13,200 Health Services 5,608 5,948 Intercollegiate Athletics Other Organizations 7,709 6,647 Other Operating Revenues 11,241 12,377 382,937 Total Operating Revenues 667,931 721,357 553,231

EXPENSES Operating Expenses Salaries Faculty 231,264 245,468 Staff 236,894 263,916 18,452 Benefits 93,698 104,558 4,216 Other Personal Services 4,263 548 1,306 Travel 16,646 16,617 4,181 Scholarships and Fellowships 14,118 10,920 7,075 Utilities 24,010 36,396 1,042 Supplies and Other Services 236,485 244,424 24,809 Depreciation 61,864 57,586 10,505 Other Operating Expense 7,497 Payments to or on Behalf of Georgia Institute of Technology 466,501 Total Operating Expenses 919,242 980,433 545,584 Operating Income (Loss) (251,311) (259,076) 7,647

NONOPERATING REVENUES (EXPENSES) State Appropriations 252,569 275,144 - Grants and Contracts Federal State Other Gifts 8,321 5,323 Investment Income (Endowments, Auxiliary, and Other) 14,392 14,552 (9,240) Interest Expense (Capital Assets) (17,133) (26,375) (40,821) Other Nonoperating Revenues 1,750 (3,371) Net Nonoperating Revenues 259,899 265,273 (50,061) Income Before Other Revenues, Expenses, Gains, or Loss 8,588 6,197 (42,414) Capital Grants and Gifts Federal State 35,919 21,855 Other 15,907 17,035 63 Additions to Permanent Endowments 38,839 Total Other Revenues 51,826 38,890 38,902 Increase in Net Assets 60,414 45,087 (3,512)

NET ASSETS Net Assets—Beginning of Year, As Originally Reported - 983,378 1,345,774 Prior Year Adjustments 8,552 - Net Assets—Beginning of Year, Restated 922,964 991,930 1,345,774 Net Assets—End of Year 983,378 1,037,017 1,342,262 GEORGIA INSTITUTE OF TECHNOLOGY STATEMENT OF CASH FLOWS (dollars in thousands) Primary Government Primary Government June 30, 2007 June 30, 2008 (audited) (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees $120,615 $134,653 Grants and Contracts (Exchange) 424,583 447,227 Sales and Services of Educational Departments 19,959 23,702 Payments to Suppliers (368,137) (407,771) Payments to Employees (464,300) (507,336) Payments for Scholarships and Fellowships (14,118) (10,920) Loans Issued to Students and Employees (3,325) (3,131) Collection of Loans to Students and Employees 2,793 2,457 Auxiliary Enterprise Charges: Residence Halls 40,529 49,473 Bookstore 1,222 1,913 Food Services 16,552 16,937 Parking/Transportation 12,344 13,231 Health Services 5,605 5,951 Intercollegiate Athletics Other Organizations 7,673 6,651 Other Receipts (Payments) 17,701 (10,299) Net Cash Provided (Used) by Operating Activities (180,304) (237,262)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations 252,569 275,144 Agency Funds Transactions 7,561 3,362 Other Nonoperating Receipts (Used) 5,588 1,568 Gifts and Grants Received for Other Than Capital Purposes 8,321 5,323 Net Cash Flows Provided by Noncapital Financing Activities 274,039 285,397

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received 8,889 20,339 Proceeds from Sale of Capital Assets 217 Purchases of Capital Assets (57,603) (91,525) Principal Paid on Capital Debt and Leases (10,193) (14,226) Interest Paid on Capital Debt and Leases (17,107) (24,164) Net Cash Used by Capital and Related Financing Activities (76,014) (109,359)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments 35 Interest on Investments 8,293 19,578 Purchase of Investments (486) (7,286) Net Cash Provided (Used) by Investing Activities 7,842 12,292 Net Increase/Decrease in Cash 25,563 (48,932) Cash and Cash Equivalents - Beginning of Year 75,390 100,953 Cash and Cash Equivalents - End of Year 100,953 52,021

RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) (251,311) (259,076) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation 61,864 57,586 Change in Assets and Liabilities: Receivables, net 4,662 (32,757) Inventories 10 (29) Other Assets (8,740) (3,082) Accounts Payable 15,793 430 Deferred Revenue (5,809) 839 Other Liabilities (354) (2,979) Compensated Absences 3,581 1,806 Net Cash Provided (Used) by Operating Activities (180,304) (237,262) GEORGIA INSTITUTE OF TECHNOLOGY Georgia Tech Facilities Inc. is incorporated as a nonprofit corporation under the laws of the state of Georgia. The purpose of Facilities Inc. is NOTES TO THE FINANCIAL STATEMENTS to construct buildings and other facilities as may be appropriate to meet June 30, 2008 the needs and goals of the Georgia Institute of Technology. Facilities Inc. serves as a financing and contracting entity for construction projects on the campus of Georgia Tech, but does not manage buildings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES after completion. The financial statements presented in this report are modified Georgia Tech Alumni Association Inc. is a nonprofit organization formed statements issued under reporting guidelines established by the to assist the Georgia Institute of Technology in alumni relations and to Governmental Accounting Standards Board (GASB). The statements promote education. The Association is dedicated to the interests and focus on the financial condition, results of operations, and cash flows welfare of Georgia Tech. Among its many other programs and activi- of the Institute as a whole, with resources classified for accounting and ties, the Association acts as a fund-raising arm of the Georgia Tech reporting purposes into four net asset categories: invested in capital Foundation through solicitation of contributions from alumni and friends assets, net of related debt; restricted-nonexpendable; restricted-expend- of the Institute on behalf of the Foundation. able; and unrestricted. The basis of accounting is full accrual, including capitalization and depreciation of equipment and fixed assets. Georgia Tech Research Corporation (GTRC) is a Georgia nonprofit cor- The unaudited financial statements are prepared using the economic poration organized and operated exclusively for scientific, literary, and resources measurement focus and the accrual basis of accounting. educational purposes. GTRC serves as the contracting agency for all Under the accrual basis, revenues are recognized when earned, and sponsored research activities at Georgia Tech. Additionally, GTRC assists expenses are recorded when an obligation has been incurred. All signifi- Georgia Tech in obtaining quality research space, enters into long-term cant intra-Institute transactions have been eliminated. Audited financial leases for specialized research equipment and facilities, and conducts statements with accompanying footnote disclosures have not been com- other research support programs for Georgia Tech and its affiliated pleted at this time. Copies of the audited financial report will be available research programs. It also owns all intellectual property created at upon request. Georgia Tech and manages patents, copyrights, and licenses. All funds The financial operations and position of six Institute cooperative received by GTRC are used to support various Georgia Tech research organizations are considered component units of the Institute and are programs as approved by the Board of Trustees of GTRC. included by discrete presentation in the Institute financial statements. Although these organizations operate exclusively to provide the Institute Georgia Tech Athletic Association Inc. is a nonprofit organization with supplemental resources and support, they are separately incorpo- created for the express purpose of aiding the educational programs of rated and managed by their own boards. An annual post audit of each the Institute by providing physical training, recreation, and intercolle- organization’s financial statements is conducted by independent certified giate athletic facilities; carrying out its athletic programs; and soliciting public accountants. These organizations are described below: gifts, donations, and grants for the purpose of supporting and enhancing the Institute’s varsity athletic programs. Inc. is incorporated as a nonprofit corporation under the laws of the state of Georgia to promote in various ways the Georgia Advanced Technology Ventures Inc. (GATV) is a Georgia cause of higher education in the state of Georgia, to raise and receive nonprofit organization formed to support the Georgia Institute of funds for the support and enhancement of the Georgia Institute of Technology’s technology transfer and economic development mission. Technology, and to aid the Institute in its development as a leading edu- GATV provides capital and operating support for technology transfer and cational institution. economic development activities, including the Advanced Technology Development Center (ATDC) incubator facilities and services to ATDC- affiliated companies.

GEORGIA INSTITUTE OF TECHNOLOGY COOPERATIVE ORGANIZATIONS Summary financial data from the financial statements of each cooperative organization is as follows: Year ended June 30, 2008 (dollars in thousands) (unaudited)

GEORGIA TECH GEORGIA TECH GEORGIA TECH GEORGIA TECH GEORGIA TECH GEORGIA FOUNDATION FACILITIES ALUMNI RESEARCH ATHLETIC ADVANCED ASSOCIATION CORPORATION ASSOCIATION TECHNOLOGY VENTURES

Total Assets 1,645,780 333,148 998 131,607 200,031 118,514 Total Liabilities 438,239 339,434 727 83,454 120,266 105,696 Unrestricted Net Assets 390,600 (16,081) (178) 48,153 (3,091) 10,594 Restricted Net Assets 816,941 9,795 449 -- 82,856 2,223 Net Assets 1,207,541 (6,286) 271 48,153 79,765 12,817 Total Net Assets and Liabilities 1,645,780 333,148 998 131,607 200,031 118,513 Revenues 117,818 13,683 6,550 390,373 58,670 14,035 Expenditures 111,539 26,368 6,800 383,294 58,382 18,259 Net Increase (Decrease) 6,279 (12,685) (250) 7,079 288 (4,224)

Net Assets: July 1, 2007 1,201,262 6,399 521 41,074 79,477 17,041

Net Assets: June 30, 2008 1,207,541 (6,286) 271 48,153 79,765 12,817 GEORGIA INSTITUTE OF TECHNOLOGY GEORGIA INSTITUTE OF TECHNOLOGY EXPENSES REVENUE BY OBJECTS OF EXPENDITURE CLASSIFICATION (dollars in millions) (dollars in millions) FY 2008 $1,051.8 FY 2007 $996.9 FY 2008 $980.4 FY 2007 $919.2

$500 $600

$400 $500

$300 $400

$200 $300

$100 $200

$0 $100 Tuition and Gifts, Grants, Capital Gifts Sales, Services, State Fees and Contracts and Grants and Other Appropriations $0 Salaries and Travel, Supplies, Depreciation Utilities Scholarships and Benefits and Other Fellowships

PHYSICAL PLANT ASSETS FOURTEEN- PHYSICAL PLANT ASSETS YEAR COMPARISON BOOK VALUE OF FOURTEEN-YEAR COMPARISON LAND, BUILDINGS, AND IMPROVEMENTS BOOK VALUE OF EQUIPMENT (dollars in millions) (dollars in millions)

$1,400 400 $277 350 $1,200 $223

300 $1,000 $1,088

250 In the bar charts to the left, $800 dark portions for FY 2008 reflect current values under 200 $204 national accounting standards $600 requiring depreciation on all 150 assets and the recent Board $400 $136 of Regents rules increasing 100 the equipment capitalization $325 threshold to $5,000. Light $200 50 extensions show what would have been reported absent $0 0 the rule changes. FY 1994 FY 2008 FY 1994 FY 2008

Land, Buildings, and Equipment Depreciation and Improvements (Depreciation) Small Value Assets Book Value of Land, Equipment Book Value Buildings, and Improvements

GEORGIA TECH SPONSORED GEORGIA TECH ACADEMIC GEORGIA TECH RESEARCH INSTITUTE EXPENDITURES SPONSORED EXPENDITURES SPONSORED EXPENDITURES By major unit and source By major source By major source FY 2008 (Total: $429.5 Million) FY 2008 (Total: $309.3 Million) FY 2008 (Total: $120.3 Million) GTRI Non-Federal Non-Federal GTF/GTRC $8.4 (7%) $1.9 (2%) $10.4 (2%) Other Federal $8.8 (7%) Defense DHHS, NASA, Agencies NSF $45.3 (15%) Non-Federal $1.8 (1%) $66.0 (21%) GTRI Federal $109.8 (26%) GT Academic Federal NSF $167.2 (39%) $50.6 (16%)

GT Academic GTF/GTRC Defense Non-Federal $76.1 (25%) Agencies $66.0 (15%) $99.4 (83%) GT Academic GTF/GTRC DHHS $76.1 (18%) $25.3 (8%)

Other Federal NASA $30.1 (10%) $15.9 (5%) A LEGACY OF STRATEGIC GROWTH

FINANCIAL REPORT 2008

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