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University of Virginia Financial Report 2008

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University of Virginia Financial Report 2008 President’s Report 2007–08 Photography in the President’s Report The 2007–08 President’s Report features the photographs of Luca DiCecco, which highlight key aspects of the student experience at U.Va. His pictures capture students studying for exams, performing research with faculty members, joining in community service work, relaxing with friends, and, finally, contemplating graduation. Today’s students are outward looking, active participants, open to diverse points of view. They structure their courses, work, and free time in ways that add to intellectual and emotional development and maturity, and prepare them for graduate schools, careers, and civic and community engagement. On pages 13–21, the report explores the special qualities of U.Va. students and the challenges that the University faces in preparing them for leadership in the twenty-first century. Students and faculty members featured prominently in the report’s photos include Olubusayo Akanbi (College ’08, Graduate Arts and Sciences ’09); Nureya Anthony (College ’11); Temitope Awosogba (College ’08, Graduate Arts and Sciences ’10); Sam Bush (College ’09); Robert E. Davis, professor of environmental sciences; Adom Getachew (College ’09); Monica Green (McIntire ’08); Lyndsay Harper (College ’11); Naa-Lamley Lamptey (College ’11); Allison Leonard (College ’11); Quinn McFrederick (Graduate Arts and Sciences ’11); Ethan Richardson (College ’09); Salif Traoré (Graduate Arts and Sciences ’11); Douglas Taylor, professor and chair of the Department of Biology; Brandon Walsh (College ’09); Xiao Wang (College ’08, Batten ’09); and Jessica Wignall (College ’08). Contents 2 from the president Building Strength for the Future 4 the year at a glance September 2007–September 2008 12 students The University of Virginia Student Experience 18 academic programs Preparing Citizens for the Twenty-First Century 22 faculty The Intellectual Core of the University 28 buildings The Changing Face of the University 32 health system Shaping the Future of Health Care 38 athletics Talent and Ability 41 2007–08 financial report President’s Report 2007–08 1 Building Strength for the Future he past year was productive for the accord with the restructuring agreements, tUniversity in most measurable ways. the new University Staff HR Plan is begin- It brought smooth successions in key aca- ning to come into service, with policies and demic leadership positions; completion programs that will give employees greater of several major building projects, with opportunities for growth and advancement. others commencing; unconditional reaf- Under the new plan, employees will have firmation of the University’s accreditation access to career-path guides that will keep by the Southern Association of Colleges them informed about the education, skills, and Schools; and improvements in the and experience they need to succeed in University’s financial condition because the careers they choose. In our new merit- of implementation of Virginia’s 2005 and and market-based compensation model, 2006 restructuring bills, prudent endow- employees will have the opportunity to ment investments, and continued success receive bonuses and raises for acquiring and in our capital campaign. In recent weeks, using new skills and for using existing skills the financial outlook here and everywhere with superior results. The plan provides new has dimmed; what is now a global eco- tools to help supervisors and employees nomic crisis began to take shape toward connect individual performance goals with John T. Casteen III the end of fiscal year 2008. This report departmental and University-wide strate- includes details on these issues and also a gies, making all of our work more cohesive. full account of the considerable achieve- The University continued its com- ments of our students, faculty members, mitment to diversity as a core value by and staff. enrolling the most diverse first-year class As implementation of Virginia’s 2005 in our history in the 2007–08 academic and 2006 restructuring legislation continued year. Approximately 34 percent of first- in 2007–08, we fulfilled our responsibili- year students identified themselves as either ties by promoting economic development minority persons or international students. in Southwest Virginia, improving public By recommitting ourselves to working schools whose performance has declined with small, women-owned, and minority- in recent years, and meeting students’ need owned businesses, we placed 42.5 percent for financial aid. We received SCHEV cer- of our discretionary spending with these tification of our performance under the businesses, surpassing the 40 percent state management agreement. This approval goal. Compared with fiscal year 2007, our allowed us to receive financial incentives minority spending grew by 64 percent. This such as interest on tuition and fees of performance is consistent with the state’s approximately $1.75 million in 2007–08. goals in the SWAM purchasing program. By providing support for students from In November 2007, we successfully con- both lower- and middle-income families, cluded negotiations to bring Rolls-Royce the Rector and Visitors’ AccessUVa finan- to Prince George County to build a new cial aid program enabled some 848 students jet engine advanced manufacturing facility. to enter the University last year. The total The Commonwealth Center for Advanced cost of the program in fiscal year 2008 was Manufacturing will be constructed and $53.8 million. Our agreement with Vir- operated by the U.Va. Foundation and ginia’s twenty-three community colleges staffed in part by U.Va. researchers. As guarantees admission based on satisfactory part of Rolls-Royce’s agreement to locate in grades in specified required courses. This Virginia, the University will become part agreement brought some 299 new Virginia of an innovative partnership that includes Community College System transfers to us Virginia Tech and the Virginia Commu- in 2007–08. The Medical Center received nity College System to collaborate with the the Governor’s Volunteerism and Commu- company on a variety of projects in both nity Service Award for providing medical engineering and business. care to underserved persons in remote, rural In 2001, John Kluge gave his 7,378-acre mountain regions of Southwest Virginia. In Albemarle County estate, Morven, to the 2 University of Virginia University of Virginia Foundation. This included Tom Skalak as vice president for years ago, and in 2007–08 we completed extraordinary gift included the historic research, Gowher Rizvi as vice provost for the infrastructure using the new investment Morven Farm, ten other working farms, and international programs, and Beth Turner as flexibility afforded by the 2007 invest- more than two dozen houses and buildings. vice provost for the arts. We will appoint ment legislation. Vice President and Chief Mr. Kluge asked that we develop the core the first dean of the Batten School during Financial Officer Yoke San Reynolds over- property for educational purposes and sell the upcoming winter. This new genera- saw implementation of an Internal Bank in its surrounding land to fund an endowment tion of capable, visionary leaders will guide 2007–08—the first visible manifestation of to support University programs. In 2006, the University into the next decade and our treasury program. Completion of the Mr. Kluge terminated his life estate, thus beyond. Dr. Garson’s capacity to attract treasury infrastructure came just in time to transferring responsibility for maintaining uncommonly promising applicants for help us ensure adequate liquidity to cover the property to the U.Va. Foundation and these positions and to participate effec- capital and operating expenses in the face making Morven available for academic uses. tively in final recruitment and hiring adds of tightening credit and liquidity in capital Both he and we agree that as funds become tangible value to administrative work at the markets. Ms. Reynolds’ systematic leader- available, a top priority will be programs to senior levels. ship in completing this infrastructure has bring top international figures to Morven for Dr. Garson and Mr. Sandridge have been valuable to the entire organization. sessions intended to address global issues that completed a new academic plan through Despite the economic crisis, we continue fall within the University’s reach. Meantime, the work of the Commission on the Future to make progress in the Campaign for the openings of appropriate parts of the prop- of the University. Our general strategy is University of Virginia. As I write, current erty during Historic Garden Week, for visits to strengthen core resources while fund- and future support commitments total $1.8 by persons interested in the unique Japanese ing selected new programs that will further billion, with considerably more anticipated garden and house, and limited use for small- distinguish the University. For example, in the second half of the current fiscal year. group meetings have begun to make Morven the Jefferson Public Citizens program will Generous commitments made during the known to persons in the region. enable faculty-mentored teams of under- first half of the campaign have given us In the early years following Mr. Kluge’s graduate students to conduct rigorous momentum heading into the second half. gift, our first priority was investment in con- research and apply that research to society’s Nonetheless, we all understand that we must servation and maintenance. More recently,
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