University of Southern California 2010 A NEW DAY FOR USC FINANCIAL REPORT University of Southern California > University Park, UGB 205 Los Angeles, CA 90089-8006 10_USCFRcover_final.R2.indd 1 12/17/10 4:48:40 AM USC celebrates a new president and a long-awaited gathering place for students 1 A New Day for USC 3 A Great Place to Be 6 2010 Academic Year Highlights 12 Report of Independent Auditors 13 2010 Financial Summary 32 Budget 2010-2011 For information and additional 40 Board of Trustees copies of this report please contact: 41 Officers, Executives and Academic Deans University of Southern California 42 Role and Mission of the University University Park, UGB 205 Los Angeles, CA 90089-8006 email: [email protected] UNIVERSITY OF SOUTHERN CALIFORNIA FINANCIAL REPORT telephone: (213) 821-1900 > www.usc.edu 10_USCFRcover_final.R3.indd 2 12/17/10 4:48:03 PM A New Day for USC The summer of 2010 brought two historic changes to USC: the long- awaited opening of the Ronald Tutor Campus Center and the beginning of C. L. Max Nikias’s tenure as the eleventh president of the university. Nikias, who had been the university’s chief academic officer since 2005, presided over the grand opening of the Tutor Campus Center as one of his first ceremonial duties as president. He invoked the words of Winston Churchill, who said “We shape our buildings, and afterward our buildings shape us,” adding: “This building reflects our Trojan values. It gives voice to our greatest aspirations.” Throughout his career at USC, Nikias has paid particular attention to creating a dynamic, well-rounded intellectual environment for students. Each fall, he teaches a micro-seminar to incoming freshmen on the devel- opment of democracy and the dramatic arts within ancient Athens; and he drove the creation of USC’s groundbreaking Visions and Voices initia- tive in the arts and humanities, now in its fourth year, which has drawn tens of thousands of undergraduates from all disciplines to a range of artistic and cultural programming. “My wife, Niki, and I and our daughters love being a ‘Trojan family,’ and 1 we love being a part of the greater Trojan Family,” he said. “To be able, then, to lead the Trojan Family forward now is the opportunity of a lifetime, as we write together the next chapter in USC’s extraordinary history.” “To be able to lead the Trojan Family is the opportunity of a lifetime.” – C. L. Max Nikias 10_USCFR_final.R2.indd 1 12/17/10 4:27:32 PM University of Southern California Financial Report 2010 2 Tutor Campus Center 10_USCFR_final.R2.indd 2 12/17/10 5:08:59 AM USC FINANCIAL REPORT 2010 A Great Place to Be Long before the confetti-filled fanfare of the groundbreaking ceremony, the dream of a centralized meeting place was passed along from one student class to the next, growing bigger each year. This fall, thanks to the gifts of many generous donors, the 193,000-square-foot Ronald Tutor Campus Center opened its doors to welcome and serve all who enter. The vision for the center was to be a welcoming location and a state-of- the-art complex and its success was demonstrated on the day the outdoor furniture was delivered to the International Plaza. “We could hardly even get it in place,” said Patrick Bailey, senior associate dean of students. “People immediately sat down in the chairs and pulled up to tables. The following weekend the plaza was packed. It is a great place to be.” Student organization offices, student groups, the Admission Center, the Epstein Family Alumni Center and other alumni groups are housed within the center, along with multiple dining options, a convenience store, Traditions pub, Tommy’s Place performance venue and KXSC Radio, cater- ing to students, alumni, faculty and staff. With its meeting rooms, lounges on every floor, benches and tables that line outdoor hallways, and multi- 2 purpose event-style rooms – as well as the popular International Plaza – 3 the Tutor Center provides myriad spots to hang out, meet or study. “The Campus Center is more than just a building,” said Bailey. “We want everyone to feel welcome and at home here.” Alan Huynh Class of 2010 Public Policy, Management and Planning Major “We want everyone to feel at home here.” – Patrick Bailey, senior associate dean of students 10_USCFR_final.R2.indd 3 12/17/10 5:09:16 AM University of Southern California Financial Report 2010 The Trojan Family Tapestry Going Green A stunning tapestry by artist John Nava If you look closely, you’ll see a lot of green – best known for his collection of tapes- in the new Ronald Tutor Campus Center. tries at the Cathedral of Our Lady of the It’s in the tri-colored red clay bricks. Angels in downtown Los Angeles – was It’s in the frosted white glass of Steven commissioned in 2008, with USC Fisher and Kathryn Sample Hall. Look up and Museum of Art director Selma Holo you can even see green in the massive heading a team that worked with Nava skylight of the Trojan Family Room. to help develop his vision for the project. The Tutor Center is the first USC Hanging just inside Steven and building to earn a Leadership in Energy Kathryn Sample Hall, the massive tap- and Environmental Design (LEED) cer- estry, which hangs 22 feet tall by 22 tification, which means it is healthier feet wide and was woven near Bruges, inside and out for the environment and Belgium, is the signature commission for those who visit the structure – and of the center’s Art & Trojan Traditions it has reduced costs by 31 percent, program and permanent art collection. compared to the standard baseline. The figures in the tapestry depict Examples include: USC students and staff members, cho- • Energy efficiency: LED lighting is sen to represent the diverse USC com- used in most interior and exterior munity. USC President Emeritus Steven lamps. The skylight in the dome of B. Sample and campus center naming the Trojan Family Room reduces donor Ronald Tutor ’63 are shown walk- the need for electric lights. ing together in the left panel of the • Recycled content: The frosted glass tapestry. Rebecca Soni, a former USC in Steven and Kathryn Sample Hall swimmer and 2008 Olympic gold med- is 100 percent recycled. alist, stands next to then-USC football • Renewable material: Bamboo and 4 player David Buehler. The background is plywood used in the Moreton Fig 5 a “field of knowledge” made up of his- restaurant are renewable. toric documents held by USC Libraries, • Indoor pollution: Carpets do not including a 13th-century Koran; the contain formaldehyde. Before public first illustrated English version of Don use, buildings were vented 24 hours Quixote, from 1687; a painted chronicle a day for a week to purge them of from the Mixtec Highlands in Mexico, construction and chemical pollution. Codex Bodley; Gentaku Otsuki’s Kankai • Building design: Outdoor walkways ibun, a Japanese manuscript from 1807; shade the building, requiring less a manuscript of Jud Süss, the first air conditioning. novel by Lion Feuchtwanger; and the • Recycling: Trash compactors Nuremberg Chronicle from 1493. separate biodegradables. At the July 10 opening of the campus • Water efficiency: Low-flow plumbing center, Nava asked Sample if he recog- was installed. Cortney Maslin nized himself in the tapestry. “I recog- • Sustainable site: An underground Class of 2010 nize the university,” Sample replied. basin captures rainfall. Master’s Candidate in Gerontology 10_USCFR_final.R2.indd 4 12/17/10 5:11:49 AM USC FINANCIAL REPORT 2010 5 green smart healthy fun 10_USCFR_final.REVISED.indd 5 12/14/10 11:22:53 PM University of Southern California Financial Report 2010 Putting USC on the Map USC Named “Safe Community” Another Bumper Crop of Freshmen USC is the first university in the world to The 2010 entering undergraduate obtain an International Safe Community student body at USC is, once again, designation from the World Health the most academically talented in the Organization Collaborating Centre on university’s 130-year history. It is also Community Safety Promotion, in rec- among the most ethnically diverse ever ognition of the work the university has enrolled at USC, with 22 percent under- done in educating students, faculty and represented minority students, including staff on what to do in a natural disaster, 7 percent African-American, 13 percent how to be safe in an urban environ- Hispanic, 2 percent Native American/ ment, and how to stay healthy mentally Pacific Islander and 28 percent Asian and physically. “You have truly engaged students. In addition, 12 percent of the community,” said Paul Kells of Safe matriculating students are the first in Communities Canada, which led the their families to attend college. certification process. “There is no power Average standardized test scores greater than community.” for the incoming class are in the 96th With the honor, USC joins a network percentile. More than 85 percent of of more than 200 communities around incoming freshmen were in the top 10 the world (only 11 in the United States) percent of their high school class and that have met the organization’s stan- around 10 percent of them were valedic- dards to promote safety and health torians. The average GPA of the group initiatives. Safe Communities designees was 3.7. With this year’s applicant pool, must demonstrate leadership, partner- USC’s admission rate was 24 percent. ship and collaborations with all commu- USC has the largest university-funded 6 nity sectors as they establish long-term financial aid budget of any university 7 programs covering all ages and target- in the country, providing more than ing high-risk groups.