February 5, 2015

TO: Members of the Board of Regents Ex Officio Representatives to the Board of Regents

FROM: Joan Goldblatt, Secretary of the Board of Regents

RE: Schedule of Meetings

THE DINNER MEETING SCHEDULED ON WEDNESDAY, FEBRUARY 11, IS CANCELED.

THURSDAY, FEBRUARY 12, 2015 8:30 to 9:45 a.m. 142 Gerberding Hall FINANCE AND ASSET MANAGEMENT COMMITTEE: Regents Shanahan (Chair), Blake, Harrell, Smith

*10:00 to 11:05 a.m. 142 Gerberding Hall ACADEMIC AND STUDENT AFFAIRS COMMITTEE: Regents Jaech (Chair), Brown, Rice, Riojas, Simon

11:30 a.m. Petersen Room REGULAR MEETING OF BOARD OF Allen Library REGENTS

*or upon conclusion of the previous session. Unless otherwise indicated, committee meetings of the Board of Regents will run consecutively; starting times following the first committee are estimates only. If a session ends earlier than expected, the next scheduled session may convene immediately. Committee meetings may be attended by all members of the Board of Regents and all members may participate.

To request disability accommodation, contact the Disability Services Office at: 206.543.6450 (voice), 206.543.6452 (TTY), 206.685.7264 (fax), or email at [email protected]. The University of Washington makes every effort to honor disability accommodation requests. Requests can be responded to most effectively if received as far in advance of the event as possible, preferably at least 10 days.

1.1/202-15 2/12/15 UNIVERSITY OF WASHINGTON BOARD OF REGENTS

Finance and Asset Management Committee Regents Shanahan (Chair), Blake, Harrell, Smith

February 12, 2015 8:30 to 9:45 a.m. 142 Gerberding Hall

Approval of Minutes of Committee Meeting on January 8, 2015 COMMITTEE ACTION 1. Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken ACTION F–1 Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2 Jon Lebo, Director of Major Projects, Capital Projects Office Rebecca Barnes, University Architect and Associate Vice Provost, Planning & Management Josh Kavanagh, Director, Transportation Services

2. Approve Amendment to the Effective Date of the University of ACTION F–2 Washington 401(a) Supplemental Retirement Plan Katy Dwyer, Executive Director, Benefits Office

3. UW One Capital Plan INFORMATION F–3 Paul Jenny, Senior Vice President, Planning & Management

4. Efficiencies Item – Office of Organizational Excellence INFORMATION F–4 Ruth Johnston, Associate Vice President and Chief of Staff, Planning & Management

5. Portage Bay Insurance Annual Report INFORMATION F–5 Elizabeth Cherry, Executive Director, Risk Management

6. University Advancement Return on Investment Report for FY 14 INFORMATION F–6 Connie Kravas, Vice President, University Advancement Walt Dryfoos, Associate Vice President, Advancement Services

7. Intercollegiate Athletics Annual Financial Report for FY 14 INFORMATION F–7 Scott Woodward, Director of Athletics, Intercollegiate Athletics Robert Sasaki, Senior Associate Athletic Director, Chief Financial Officer, Intercollegiate Athletics

8. Other Business

1.2.1/202-15 2/12/15 UNIVERSITY OF WASHINGTON BOARD OF REGENTS

Academic and Student Affairs Committee Regents Jaech (Chair), Brown, Rice, Riojas, Simon

February 12, 2015 10:00 to 11:05 a.m. 142 Gerberding Hall

Approval of Minutes of Committee Meeting on January 8, 2015 COMMITTEE ACTION 1. Academic and Administrative Appointments ACTION A–1 Ana Mari Cauce, Provost and Executive Vice President

2. Wellness and Life Skills Development at the University of INFORMATION A–2 Washington Ellen Taylor, Assistant Vice President for Student Life and Director, Counseling Center Alysha Greig, Senior, Department of Philosophy, Mary Gates Leadership Scholar

3. Research-Based Innovations in Teaching and Learning at the INFORMATION A–3 University of Washington Lizabeth (Betsy) Wilson, Vice Provost for Digital Initiatives and Dean of University Libraries Beth Kalikoff, Professor and Director, Center for Teaching and Learning Colleen Craig, Lecturer, Department of Chemistry, College of Arts and Sciences Katherine Snider, Doctoral Candidate, Department of French and Italian Studies, College of Arts and Sciences Kristi Straus, Lecturer, Program on the Environment, College of the Environment

4. Other Business

1.4.1/202-15 2/12/15 BOARD OF REGENTS University of Washington

February 12, 2015 11:30 a.m. Petersen Room, Allen Library (Item No.) I. CALL TO ORDER

II. ROLL CALL: Assistant Secretary Shelley Tennant

III. CONFIRM AGENDA

IV. PUBLIC COMMENT PERIOD

V. BOARD ITEMS

Legislative and Budget Update (Information only) B–1 Randy Hodgins, Vice President, External Affairs Sarah Hall, Assistant Vice Provost, Planning & Budgeting

UW Medicine Board Annual Compliance Report (Information only) B–2 Rich Jones, Chair, UW Medicine Board Compliance Committee Paul G. Ramsey, M.D., CEO, UW Medicine; Executive Vice President for Medical Affairs, UW; Dean, UW School of Medicine Sue Clausen, Chief Compliance Officer, UW Medicine; Associate Vice President for Medical Affairs, UW

VI. REPORT OF THE UNIVERSITY PRESIDENT: President Young

VII. REPORT OF THE CHAIR OF THE BOARD OF REGENTS: Regent Ayer

Executive Session (to evaluate the qualifications of an applicant for public employment or to review the performance of a public employee and to discuss with legal counsel representing the University potential litigation as defined in RCW 42.30.110.)

VIII. CONSENT AGENDA

Approval of Minutes of Meeting of January 8, 2015

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated F–1 Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2

1.1.1/202-15 2/12/15 AGENDA – Board of Regents Meeting on February 12, 2015 Page 2

Approve Amendment to the Effective Date of the University of Washington F–2 401(a) Supplemental Retirement Plan

IX. STANDING COMMITTEES

A. Academic and Student Affairs Committee: Regent Jaech – Chair

Academic and Administrative Appointments (Action) A–1

Wellness and Life Skills Development at the University of Washington A–2 (Information only)

Research-Based Innovations in Teaching and Learning at the University of A–3 Washington (Information only)

B. Finance and Asset Management Committee: Regent Shanahan – Chair

UW One Capital Plan (Information only) F–3

Efficiencies Item – Office of Organizational Excellence (Information only) F–4

Portage Bay Insurance Annual Report (Information only) F–5

University Advancement Return on Investment Report for FY 14 (Information F–6 only)

Intercollegiate Athletics Annual Financial Report for FY 14 (Information only) F–7

X. REPORTS TO THE BOARD

Faculty Senate Chair – Professor Kate O’Neill

Student Leaders: ASUW President – Ms. Christina Xiao GPSS President – Ms. Alice Popejoy ASUW Tacoma President – Ms. Jocelyn Patterson ASUW Bothell President – Mr. James Anderson

Alumni Association President – Dr. Roy Diaz

XI. DATE FOR NEXT REGULAR MEETING: Thursday, March 12, 2015

XII. ADJOURN

1.1.1/202-15 2/12/15 OFFICIAL MINUTES

M I N U T E S

BOARD OF REGENTS University of Washington

February 12, 2015

The Board of Regents held its regular meeting on Thursday, February 12, 2015, beginning at 11:30 a.m. in the Petersen Room of the Allen Library. The notice of the meeting was appropriately provided to the public and the media.

CALL TO ORDER

Regent Ayer called the meeting to order at 11:30 a.m.

ROLL CALL

Assistant Secretary Tennant called the roll: Present were Regents Ayer (chairing), Blake, Brown, Harrell, Jaech, Rice, Riojas, and Simon; President Young, Provost Cauce, Ms. Warren, Ms. Goldblatt; ex officio representatives: Professor O’Neill, Ms. Popejoy, Ms. Xiao, Dr. Diaz.

Absent: Regents Shanahan and Smith

CONFIRM AGENDA

The agenda was confirmed as presented.

PUBLIC COMMENT PERIOD

Regent Ayer announced the Board would receive comments from the public. This segment of the meeting is meant to give Board members a chance to hear directly from the public on any subject pertaining to the University. He noted that while the Board was pleased to have the opportunity to listen to any comments offered and consider them in its decision-making, the Board was not in a position to directly act on the comments or provide a response. Any Board member who would like additional information would make that request through staff following the meeting.

Regents heard comments from two people who signed up in advance. A UW faculty member commented on behalf of AAUP about the search process for the University President and a UW student spoke against animal research and the construction of an animal research and care facility.

BOARD OF REGENTS 2 February 12, 2015 Regent Ayer thanked the speakers for attending the meeting and presenting their comments to the Board. He reiterated if members of the Board would like additional information about the issues presented in public comment, they would make the request of staff and it would be provided at a later time.

BOARD ITEMS

Legislative and Budget Update (Agenda no. B–1) (Information only)

Randy Hodgins, Vice President, External Affairs, and Sarah Hall, Assistant Vice Provost, Planning & Budgeting, provided an update from the state legislature and on the budget process.

Ms. Hall reported no budget news from Olympia. The next revenue forecast will be released on March 18. Budget writers in both the House and Senate will use this next forecast as their target for general fund appropriations. She noted a record-breaking high level of bill activity to-date during this legislative cycle. Planning & Budgeting is tracking 433 bills.

Mr. Hodgins reiterated serious budget writing would begin following the state revenue forecast update. The WSU medical school bill cleared policy committees in the House and Senate. UW introduced legislation calling for an expansion of UW’s medical program in Spokane and addressing deficiencies in residencies and the health loan repayment program. He expects the introduction of bills which would result in a significant roll-back of undergraduate resident tuition, made up by public funding.

UW students recently held a well-attended Huskies on the Hill lobbying day.

The UW Federal Relations 2014 Report was distributed and is attached to these minutes.

See Attachment B–1.

UW Medicine Board Annual Compliance Report (Agenda no. B–2) (Information only)

Rich Jones, Chair, UW Medicine Board Compliance Committee; Paul G. Ramsey, M.D., CEO, UW Medicine, Executive Vice President for Medical Affairs, and Dean of the School of Medicine; and Sue Clausen, Chief Compliance Officer of UW Medicine and Associate Vice President for Medical Affairs, provided the UW Medicine Board’s annual compliance report, one of three annual reports from the UW Medicine Board to the Board of Regents. The others are Financial and Patient Safety and Quality.

Mr. Jones thanked Ms. Clausen and her staff for preparing the comprehensive report distributed to Regents before the meeting and highlighted items from the report. He described the backgrounds of the Compliance Committee members and thanked them for their service. The Compliance Committee is charged with reviewing and evaluating the compliance programs at UW Medicine, its component entities, and those in which it has a BOARD OF REGENTS 3 February 12, 2015 financial interest. The findings are reported to the UW Medicine Board in addition to the annual report to the Board of Regents.

Mr. Jones described how the Committee does its work. It meets five times per year, with executive directors and compliance officers of each UW Medicine business unit. At the meetings the Committee reviews the results and findings of external reviews. Twice each year the Committee reviews detailed reports on each of the entities. The Compliance Office staff members provide an update of emerging issues. A detailed briefing on one of four or five key areas of compliance is presented. Recently the Committee began to hold private meetings with leaders of business units to hear their compliance concerns and challenges. He feels the compliance program at UW Medicine is working well, has the clear support of top-level senior leadership, is adequately funded, and continues to successfully deal with an ever-changing and increasingly complex and highly regulated business environment.

Regent Ayer praised the report as a great description of process, infrastructure, and reporting relationships, but asked about how the report could evolve to measure actual compliance risks, and present more findings and resolutions. Mr. Jones said the Committee is reviewing this type of data. Dr. Ramsey said in the future the report would include data related to significant compliance issues and concerns. Regent Ayer asked about resources – if UW Medicine is appropriately staffed around compliance. Ms. Clausen said the unit is doing well, adapting resources to the most emergent needs in an area of an evolving regulatory landscape. She said Compliance is well staffed with a commitment from senior leadership to keep it that way. The Compliance unit has grown over the last ten years.

Regents asked about the compliance process challenge presented by integrating new hospitals into UW Medicine. Dr. Ramsey explained when Valley Medical and Northwest Hospitals joined UW Medicine, their compliance programs were examined during the due diligence process. This supported the development of a plan and timetable for integration. Ms. Clausen said this initial assessment was useful. The compliance team performed additional assessments to reach the granular detail. It takes approximately one to three years to complete the process from initial risk assessment to full integration, beginning with the highest risk areas and working down to the lowest.

See Attachment B–2.

REPORT OF THE UNIVERSITY PRESIDENT: President Young

Regent Ayer introduced President Young’s report by saying it had been ten days since the news about President Young being named the sole finalist for the Presidency at Texas A&M. Regent Ayer invited President Young to deliver the report of the University President.

President Young said the decision to accept the presidency of Texas A&M University was difficult and bittersweet.

BOARD OF REGENTS 4 February 12, 2015 For nearly four remarkable years, he has been honored to work alongside the University’s world-class faculty, students, and staff, with supporters and alumni who make the University of Washington one of the greatest public universities in the world. He is extremely proud of the work that has been accomplished.

He believes the University of Washington is on an upward trajectory, and he has enormous confidence in the strong, stable, and dedicated leadership team that will continue to serve after he leaves.

He expressed his thanks to the Board of Regents for their leadership, advocacy, and partnership during his tenure at the University. Leading a University of this caliber requires extraordinary teamwork, and he has been fortunate for the guidance, friendship, and support he has received from the committed and powerful team formed by the Board of Regents. He looks forward to working together to support a seamless leadership transition, and continued friendship in the future.

REPORT OF THE CHAIR OF THE BOARD OF REGENTS: Regent Ayer

Regent Ayer thanked President Young. He expressed appreciation on behalf of the Board and wished President and Mrs. Young the best in their new endeavor.

Under President Young’s leadership the UW has emerged from the great recession as a much stronger University with important initiatives underway in virtually every area. The University is thriving and has strong momentum that will continue.

Among President Young’s and his team’s achievements: • A strong focus on the undergraduate experience resulted in new programs, residence halls, and a strong focus on undergraduate success through the Husky Student Experience. • The UW’s long-standing focus on innovation expanded and continues to expand. • More Washington residents gained access to the University of Washington, thanks to increased freshman and transfer enrollments across the three campuses and two new online degree completion programs. • The University continued to rise in national and international rankings. • The University’s reputation as a destination campus for the state’s and the nation’s top students continued to grow. Applications for next fall’s freshman class are up an impressive17 percent. • The faculty’s capacity to address the world’s greatest challenges continues to be unparalleled, with more than $1.4 billion in competitive research funding awarded to the UW in fiscal year 2014, the most of any public university in the country.

President Young is departing the UW at a time when the University is on a solid upward path. On behalf of the Board of Regents, Regent Ayer thanked President Young for his stewardship of this extraordinary university, and said, “You left the campsite in much better shape than you found it!”

BOARD OF REGENTS 5 February 12, 2015 Applause for President Young followed Regent Ayer’s remarks.

EXECUTIVE SESSION

Regent Ayer said the Board would hold a fifteen-minute executive session to evaluate the qualifications of an applicant for public employment or to review the performance of a public employee and to discuss with legal counsel representing the University potential litigation as defined in RCW 42.30.110.

Appointment of an Interim President of the University of Washington (Agenda no. B–3) (Action)

Following the executive session, the Board returned to open session and Regent Ayer said it was his pleasure to put forward a motion to appoint Ana Mari Cauce as Interim President of the University of Washington, effective March 2, 2015. He read the motion,

Motion to Appoint Interim President of the University of Washington

It is moved that Ana Mari Cauce be appointed to serve as Interim President effective upon the termination of President Young’s contract, currently planned on March 2, 2015.

The conditions of this appointment are as follows:

1. The appointee will serve at the pleasure of the Board of Regents; with full authority as President as articulated in the Board of Regents Bylaws;

2. Compensation shall be $524,784 in annual salary. Deferred compensation will increase by $50,000 to $150,000 per year.

The Chair of the Board of Regents is delegated authority to establish such other terms and conditions of employment as may be appropriate and to execute an appointment letter on behalf of the Board.

MOTION: Upon the recommendation of the Chair of the Board and the motion made by Regent Ayer, seconded by Regent Simon, the Board voted unanimously to appoint Ana Mari Cauce as Interim President of the University of Washington. Regent Brown abstained.

Regent Ayer said it was his great privilege to be the first to congratulate Ana Mari on her appointment as Interim President of the University of Washington, planned to be effective on March 2. Ana Mari is an extraordinary leader of the University – a person who is known for her straightforward and accessible leadership, extraordinary intellect, plain-spoken common sense, honesty, sense of justice, and deep dedication to the University, its students, faculty, staff and all those the University serves.

In her role as President, Ana Mari will be fully empowered and, in many ways, will continue the work she has been doing as Provost. There hasn’t been a major decision over BOARD OF REGENTS 6 February 12, 2015 the past two years that she hasn’t been a part of. Indeed, in her nearly thirty years with the University, her research, teaching, service and leadership have steadily contributed to the world class reputation the UW holds today.

Selecting a President is the most important decision Regents make. This decision was approached thoughtfully and deliberately. Regents have had discussions with dozens of faculty, staff, students and community leaders over the past ten days. Those conversations have reinforced the belief that Ana Mari will provide the strength of character and leadership to ensure the University continues to move forward with tremendous momentum and a strong focus on the important initiatives that are underway.

Dr. Cauce’s story is one that exemplifies the values of the University. She was born in Cuba. Her family fled the country during the Cuban revolution when Ana Mari was three years old. She grew up in Miami, and her family was, by her own description “pretty close to dirt poor.” But her parents prized a good education above all else. That belief was enough to inspire her to pursue a future that brings her full circle today.

Dr. Cauce joined the University of Washington faculty in 1986 as an Assistant Professor in the Department of Psychology after earning degrees in English and Psychology from the University of Miami in 1977 and a Ph.D. in Psychology from Yale University in 1984.

Provost Cauce is Professor of Psychology and American Ethnic Studies. She has held numerous leadership positions at UW, including Director of the UW Honors Program, Chair of American Ethnic Studies, Chair of Psychology, Executive Vice Provost, and Dean of the College of Arts and Sciences.

For the past three years, she has served as the University’s Chief Academic Officer and Chief Budgetary Officer, overseeing the academic enterprise and resource allocations. She has worked closely with the President on strategic planning and long-term decision- making.

The Regents have great confidence in Ana Mari’s leadership and appreciate her deep and heartfelt commitment to the University of Washington – its people and its future. At a time when the University is thriving but also faces pressures as public higher education continues to be challenged, the Regents believe Ana Mari Cauce is the perfect choice to lead the University forward.

Regents, and others, applauded Dr. Cauce and offered comments of support.

Regent Ayer invited Provost Cauce to say a few words. She accepted the appointment, saying she felt humbled by the incredible honor. Thanking the Regents for their confidence, she promised to earn it. She praised the Regents’ commitment to the University. She will rely on them for their wisdom and help along the way. She offered thanks to President Young for asking her to serve as Provost, saying he helped her grow into the position and appreciated his collaborative work style. The University community will miss him and Marti.

BOARD OF REGENTS 7 February 12, 2015 She said the University is “boundless” in so many different ways. It is truly interdisciplinary, with no boundaries between teaching and research, access or excellence. There is an enormous amount of creativity in the region at this time in history and the University is poised to take advantage of this. There is much momentum which she plans to accelerate. Working together, the University can overcome challenges and become better and better.

Regent Ayer said the Regents will now begin giving thought to a future search process, and will share details at a later date.

Regent Ayer requested a motion to authorize the Board Chair to execute an agreement regarding the resignation of the University President.

Authorizing the Board Chair to Execute an Agreement Regarding the Resignation of the University President (Agenda no. B–4) (Action)

MOTION: Upon the recommendation of the Chair of the Board and the motion made by Regent Rice seconded by Regent Blake, the Board voted to authorize the Board Chair to execute an agreement regarding the resignation of the University President. Regent Brown abstained.

CONSENT AGENDA

Regent Ayer noted there were three items for approval on the consent agenda, and called for a motion.

MOTION: Upon the recommendation of the Chair of the Board and the motion made by Regent Rice, the Board voted to approve the three items on the consent agenda as shown below:

Minutes for the meeting of January 8, 2015

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2 (Agenda no. F–1)

In February 2013, PLACE Studio (landscape architects) of Portland, OR, was appointed by the Board of Regents as the architect “prime” consultant for the Burke Gilman Trail Corridor (BGTC) Phase 1 and 2 projects.

For performance reasons, the design team on the BGTC Phase 1 project was restructured. Under delegated authority, PLACE Studio’s (PLACE) contract was terminated and KPFF Consulting Engineers (KPFF), the project civil and structural engineering subconsultant, was appointed as the project engineer and PLACE Studio (PLACE) was assigned as the design subconsultant. KPFF was awarded an engineering agreement on January 14, 2015, for Phase 1.

BOARD OF REGENTS 8 February 12, 2015 It was the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents make a similar change to the BGTC Phase 2 project to select KPFF as the engineer and delegate authority to the President to award a design contract for the Burke Gilman Trail Corridor Phase 2 to KPFF, subject to successful negotiation of an engineering agreement.

See Attachment F–1.

Approve Amendment to the Effective Date of the University of Washington 401(a) Supplemental Retirement Plan (Agenda no. F–2)

It was the Recommendation of the Finance and Asset Management Committee that the Board of Regents approve amendment of the University of Washington 401(a) Supplemental Retirement Plan (the “UWSRP”), which is required in order to rely on the IRS determination letter, dated November 7, 2014.

The UWSRP was split out from the University of Washington Retirement Plan by Regent action effective January 1, 2009. The UWSRP is a defined benefit plan intended to be qualified under Internal Revenue Code Section 401(a).

See Attachment F–2.

STANDING COMMITTEES

ACADEMIC AND STUDENT AFFAIRS COMMITTEE: Regent Jaech, Chair

Regent Ayer invited Regent Jaech to provide a report from the Academic and Student Affairs Committee meeting.

Academic and Administrative Appointments (Agenda no. A–1) (Action)

At the request of Regent Jaech, Provost Cauce highlighted the appointment of Mark Pagano to Chancellor at UW Tacoma. Chancellor Pagano will start on March 16, 2015.

MOTION: Upon the recommendation of the administration and the motion made by Regent Jaech, the Board voted to approve the personnel appointments. Regent Brown abstained from the vote.

See Attachment A–1.

Wellness and Life Skills Development at the University of Washington (Agenda no. A–2) (Information only)

A panel of people who are involved in counseling and other aspects of student mental health and wellness led an interesting discussion. They identified the issue of social isolation inside the University as a huge problem for students. It is important for the University to help bring students into communities to provide a social network that BOARD OF REGENTS 9 February 12, 2015 allows them to learn effectively. Stress is a huge “killer” of the ability to learn. Committee members heard about counseling efforts, which are reactive to issues and learned about mindfulness and other proactive efforts which create an environment for students to have a way to alleviate stress before it becomes a critical problem.

See Attachment A–2.

Research-Based Innovations in Teaching and Learning at the University of Washington (Agenda no. A–3) (Information only)

A panel of people who are involved in exploring how teaching and learning can change to be more effective described how active learning engages students in the learning process. They introduced Regents to a variety of programs on the University’s three campuses which target different groups, including graduate students, new faculty, and non-native English language speakers. Regent Jaech said this was an interesting discussion.

One of the things that struck him about the two presentations is how the active learning techniques themselves create community and relate to the same goals as the wellness and life skills development efforts. A sense of engagement with fellow students helps to facilitate learning.

See Attachment A–3.

FINANCE AND ASSET MANAGEMENT COMMITTEE: Regent Harrell, Vice Chair

Regent Ayer thanked Regent Harrell for chairing the Finance and Asset Management Committee in Regent Shanahan’s stead and invited her to provide a report from the meeting.

UW One Capital Plan (Agenda no. F–3) (Information only)

Paul Jenny’s report looked “down the road” and described what Regents could expect for future capital projects.

See Attachment F–3.

Efficiencies Item – Office of Organizational Excellence (Agenda no. F–4) (Information only)

Regents heard a story of impact that maps back to the efficiencies the University is realizing over the last few years. Regent Harrell said this interesting report was about organizational design and processes as well as people. The presentation highlighted the importance of trust as the University drives operational efficiency. The University is able to be more effective as trust is increased.

See Attachment F–4. BOARD OF REGENTS 10 February 12, 2015

Portage Bay Insurance Annual Report (Agenda no. F–5) (Information only)

This report was about the University’s not-for-profit single payer captive insurance company. The report described the organization and its structure. Regents heard about two key measurements – the lower than normal expense ratio and the loss ratio.

See Attachment F–5.

University Advancement Return on Investment Report for FY 14 (Agenda no. F–6)

In the last fiscal year, Advancement raised $482 million dollars with a cost-effective ratio. This was a great story for the University. The report also described the return from the endowment back to the University.

See Attachment F–6.

Intercollegiate Athletics Annual Financial Report for FY 14 (Agenda no. F–7) (Information only)

Regents heard from Intercollegiate Athletics (ICA) with their annual report on finances. This, she said, was also a good story. Overall revenues were over $85 million. Over 70% of UW’s student athletes earned over a 3.0 grade point average. For the first time, the football team’s average grade point is over 3.0. There will be further discussion about the percentage of funds ICA returned to the University as an offset to education.

See Attachment F–7.

REPORTS TO THE BOARD OF REGENTS

Regent Ayer invited Jocelyn Patterson and James Anderson to the Board table.

Faculty Senate Chair: Professor Kate O’Neill

Professor O’Neill’s remarks are attached to these minutes.

ASUW President: Ms. Christina Xiao

Ms. Xiao reported 90 students participated in the recent Huskies on the Hill lobby day. Students from UW Tacoma and Bothell attended, also. She thanked UW State Relations for bringing Dubs to Olympia.

ASUW is sponsoring community-building events during winter quarter. • Everybody Every Body fashion show sponsored by the Student Health Consortium to promote positive body image. BOARD OF REGENTS 11 February 12, 2015 • Blank Monologues sponsored by the Women’s Action Commission to give people the space to tell their stories about gender. • American Indian Student Commission’s Winter Powwow.

GPSS President: Ms. Alice Popejoy

Ms. Popejoy said graduate students also participated in Huskies on the Hill, where they focused their messaging on investment in higher education and conveyed the message that freezing undergraduate resident tuition without investment in the University impacts graduate students.

While in Olympia, students explored regulations on childcare and what could be done to make it easier to facilitate more flexible options for childcare for faculty, staff, and students. GPSS is also working on a campus-wide initiative to make childcare more accessible for graduate students and others.

GPSS recently passed a resolution on open access for research conducted at the University of Washington. This is a joint effort with Libraries to help ease the burden of the rising cost of journal subscriptions. It would make all UW research available to the public.

Ms. Popejoy said, while the university seems to be doing well in general, she feels students are not doing so well. She cited issues of isolation for graduate students and high stress of student debt. GPSS will hold a series of diversity fora to focus on some current social issues.

ASUW Tacoma President: Ms. Jocelyn Patterson

Ms. Patterson looks forward to Mark Pagano’s starting date as Chancellor at UW Tacoma. During a recent visit to campus he met with students about various campus issues, including parking, housing, tuition, and affordability. ASUWT is exploring an initiative to create a smoke and tobacco free campus. They decided to bring this issue to the students for a vote during the upcoming elections, but they are also seeking input from faculty and staff, and community businesses.

UW Tacoma students attended Huskies on the Hill and received positive feedback from students about the event.

Ms. Patterson was pleased to announce plans to open a childcare center for students, staff, and faculty in January 2016. The center will be located in the Children’s Museum, and run in partnership with United Way.

UW Tacoma recently started intermural sports activities in the new student union building, with volleyball and basketball teams.

ASUW Bothell President: Mr. James Anderson

BOARD OF REGENTS 12 February 12, 2015 Mr. Anderson provided an update on activities and projects at UW Bothell.

• ABC Council – forming an academic and budgetary council for students to meet with administrators about budgets. This will create better communication between the administration and students and involve students in decision-making. • Freshman applicants – ASUWB is holding a series of admitted student receptions, and hosting a Pathways to Academic Enhancement fair, to help new students get involved in activities on campus. • Huskies on the Hill – UWB participated. There was a strong sense of camaraderie. • UW Bothell hosted a tri-campus meeting with GPSS and ASUW officers from all three campuses. • UWB recently hosted author and CEO-advisor Ram Sharan. • Undergraduate research week. • Preparing the budget for ASUW.

Mr. Anderson reflected on the presentations about mental health in the committee meeting earlier in the day. He said the University has the responsibility to make sure students, staff, and faculty are being trained to recognize issues and to help each other. UW Bothell has “HEROs” which stands for Health Educators Reaching Out. This is a peer to peer group that helps students deal with many campus issues.

Alumni Association President: Dr. Roy Diaz

Dr. Diaz expressed deep appreciation, on behalf of the Alumni Association, to President and Mrs. Young. He is excited about the appointment of Dr. Cauce as President, saying her commitment to the University of Washington is extraordinary.

UW Impact is hard at work during the legislative session to mobilize alumni and friends from across the state to advocate legislators for increased support to the University of Washington and public higher education. He highlighted two critical events. An alumni day of action is scheduled for Wednesday, February 18. Each University’s advocacy group or government relations team has selected a group of alumni volunteers to meet with members of the House and Senate Higher Education committees and encourage them to support the funding level requested for the six public universities and not to increase tuition without re-investment.

UW Impact is actively working to address issues around the Spokane medical school discussion, by conveying the message that WWAMI program support should remain with the University of Washington.

DATE FOR NEXT MEETING

The next regular meeting of the Board of Regents will be held on Thursday, March 12, 2015, at UW Bothell.

BOARD OF REGENTS 13 February 12, 2015

ADJOURNMENT

Regent Ayer closed the meeting with a final round of applause for Ana Mari Cauce. The regular meeting was adjourned at 1:45 p.m.

______Joan Goldblatt Secretary of the Board of Regents

Approved at the meeting of the Board on March 12, 2015. A–1 VII. STANDING COMMITTEES

A. Academic and Student Affairs Committee

Academic and Administrative Appointments

RECOMMENDED ACTION

It is the recommendation of the administration and the Academic and Student Affairs Committee that the Board of Regents approve the appointments to the University faculty and administration as presented on the attached list.

Attachment Academic and Administrative Appointments

A–1/202-15 2/12/15

ADMINISTRATIVE APPOINTMENTS

School of Dentistry Department of Restorative Dentistry Sorensen, John Alan Associate Dean, Restorative Dentistry, effective 1/1/2015 Continuing Appointment: • Acting Professor, Restorative Dentistry Degrees: • PhD, 1997, University of Copenhagen (Denmark) • DMD, 1980, Tufts University • BA, 1977, University of Oregon

College of Engineering Department of Electrical Engineering Poovendran, Raadhakrishnan Chair, Electrical Engineering, effective 1/1/2015 Continuing Appointment: • Professor, Electrical Engineering Degrees: • PhD, 1999, University of Maryland • MSEE, 1991, University of Michigan (Ann Arbor) • BTech, 1988, Indian Institute of Technology (India)

Department of Mechanical Engineering Fabien, Brian Cyriacus Associate Dean, Mechanical Engineering, effective 1/1/2015 Continuing Appointment: • Professor, Mechanical Engineering Degrees: • MPHIL, 1990, Columbia University • PhD, 1990, Columbia University • Master Of Mechanical Engineering, 1983, Columbia University • BSME, 1981, City University of New York (City College)

A–1.1/202-15 ATTACHMENT Page 1 of 8 2/12/15 School of Medicine Department of Medicine Best, Jennifer Ann Associate Dean, Medicine, effective 1/1/2015 Continuing Appointment: • Associate Professor without Tenure, Medicine Degrees: • MD, 2000, Northwestern University • BA, 1995, Seattle Pacific University

School of Nursing Department of Psychosocial and Community Health Schepp, Karen Gulseth Chair, Psychosocial and Community Health, effective 1/16/2015 Continuing Appointment: • Professor, Psychosocial and Community Health Degrees: • PhD, 1985, University of Arizona • MN, 1967, University of Washington • BSN, 1965, University of North Dakota

University of Washington, Bothell UW Bothell School of Educational Studies Smith, Antony Todd Associate Dean, School of Educational Studies, Bothell, effective 12/16/2014 Continuing Appointment: • Associate Professor, School of Educational Studies, Bothell Degrees: • PhD, 2006, University of Washington • MED, 1995, University of Washington • BA, 1991, University of Oregon

UW Bothell School of Nursing and Health Studies Mohammed, Selina Aiko Associate Dean, School of Nursing and Health Studies, Bothell, effective 12/16/2014 Continuing Appointments: • Associate Professor, School of Nursing and Health Studies, Bothell • Adjunct Associate Professor, Psychosocial and Community Health Degrees: • PhD, 2004, University of Washington • MSN, 1998, University of Michigan • BSN, 1994, University of Cincinnati • BA, 1989, Indiana University

A–1.1/202-15 Page 2 of 8 2/12/15 University of Washington, Tacoma University of Washington, Tacoma Pagano, Mark A Chancellor, Tacoma , effective 3/16/2015 Degrees: • PhD, 1992, Southern Illinois University • MS, 1983, Southern Illinois University • BS, 1979, Southern Illinois University

ENDOWED APPOINTMENTS

College of Engineering Department of Computer Science and Engineering Balazinska, Magdalena Jean Loup Baer Professorship in Computer Science and Engineering, effective 7/1/2014 Continuing Appointment: • Associate Professor, Computer Science and Engineering Degrees: • PhD, 2005, Massachusetts Institute of Technology • MS, 1999, Ecole Polytechnique de Montreal (Canada) • BS, 1998, Ecole Polytechnique de Montreal (Canada)

William E. Boeing Department of Aeronautics and Astronautics Waas, Anthony Marius Egtvedt Boeing Endowed Chair for Excellence in Engineering, effective 1/1/2015 Continuing Appointments: • Professor, William E. Boeing Aeronautics and Astronautics • Chair, William E. Boeing Aeronautics and Astronautics Degrees: • PhD, 1988, California Institute of Technology • MS, 1983, California Institute of Technology • BS, 1982, University of London: Imperial College

A–1.1/202-15 Page 3 of 8 2/12/15 School of Law School of Law O'Connor, Sean M. Boeing International Professorship, effective 1/1/2015 Continuing Appointments: • Professor, Law • Assistant Dean, Law Degrees: • JD, 1998, Stanford University • MA, 1995, Arizona State University • BA, 1988, University of Massachusetts

School of Public Health Department of Global Health Ebi, Kristie Lee Rohm & Haas Endowed Professorship In Public Health Sciences, effective 8/1/2014 Continuing Appointments: • Professor without Tenure, Global Health • Professor without Tenure, Environmental and Occupational Health Sciences • Professor without Tenure, Global Health Degrees: • PhD, 1985, University of Michigan (Ann Arbor) • MPH, 1983, University of Michigan (Ann Arbor) • MS, 1976, Massachusetts Institute of Technology • BS, 1972, Michigan State University

NEW APPOINTMENTS

ROTC Department of Military Science Beattie, Troy Jeramie Assistant Professor, Military Science, effective 12/1/2014 Degrees: • MA, 2010, Naval Postgraduate School • BA, 1994, University of California (Santa Cruz)

A–1.1/202-15 Page 4 of 8 2/12/15 College of Built Environments Department of Architecture Meek, Christopher Martin Associate Professor, Architecture, effective 1/1/2015 Prior UW Appointment: • Research Associate Professor, Architecture Degrees: • Master Of Architecture, 2002, University of Washington • BA, 1996, University of New Mexico

College of Engineering Department of Bioengineering Averkiou, Michalakis A. Associate Professor Tenure Track, Bioengineering, effective 1/5/2015 Degrees: • PhD, 1994, University of Texas, Austin • MS, 1989, University of Texas, Austin • BS, 1987, University of Texas, Austin

Department of Mechanical Engineering Wada, Taishi Visiting Associate Professor, Mechanical Engineering, effective 3/1/2015 Degrees: • PhD, 2000, Kyoto University (Japan) • ME, 1994, Kyoto University (Japan) • Bachelor Of Engineering, 1992, Kyoto University (Japan)

School of Medicine Department of Family Medicine Cawse-Lucas, Jeanne Marie Assistant Professor without Tenure, Family Medicine, effective 1/2/2015 Prior UW Appointment: • Acting Assistant Professor, temporary, Family Medicine Degrees: • MD, 2006, University of Massachusetts • BA, 2001, Harvard University

Department of Medicine Akoum, Nazem Associate Professor without Tenure, Medicine, effective 1/2/2015 Degrees: • MS, 2011, University of Utah • MD, 2001, American University of Beirut (Lebanon) • BS, 1997, American University of Beirut (Lebanon)

A–1.1/202-15 Page 5 of 8 2/12/15 Department of Obstetrics and Gynecology Neal-Perry, Genevieve Associate Professor without Tenure, Obstetrics and Gynecology, effective 1/16/2015 Degrees: • MD, 1998, Rutgers Medical School • PhD, 1996, Rutgers Medical School • BA, 1988, Dartmouth College

Sun, Yan Research Assistant Professor, Obstetrics and Gynecology, effective 1/16/2015 Degrees: • PhD, 2007, Fudan University (China) • MD, 2004, Guiyang Traditional Chinese Medical School • Department of Pediatrics

Department of Pediatrics Cooper, Todd Michael Associate Professor without Tenure, Pediatrics, effective 2/1/2015 Degrees: • Doctor of Osteopathic Medicine, 1998, Nova Southeastern University • BS, 1991, University of Georgia

Department of Psychiatry and Behavioral Sciences Markman, Jesse David Assistant Professor without Tenure, Psychiatry and Behavioral Sciences, effective 1/2/2015 Prior UW Appointment: • Acting Assistant Professor, temporary, Psychiatry and Behavioral Sciences Degrees: • MBA, 2009, University of Michigan • MD, 2009, University of Michigan • BA, 2004, Yale University

Reger, Greg Michael Associate Professor without Tenure, Psychiatry and Behavioral Sciences, effective 1/1/2015 Degrees: • MA, 2004, Fuller Theological Seminary • PhD, 2004, Fuller Theological Seminary • MA, 2000, Fuller Theological Seminary • BA, 1994, Seattle Pacific University

A–1.1/202-15 Page 6 of 8 2/12/15 Department of Surgery Kenagy, Richard Douglas Research Assistant Professor, Surgery, effective 1/2/2015 Degrees: • PhD, 1980, University of Missouri (Columbia) • BA, 1974, University of Missouri (Columbia)

Department of Urology Lam, Hung-Ming Research Assistant Professor, Urology, effective 12/31/2014 Prior UW Appointment: • Acting Assistant Professor, temporary, Urology Degrees: • PhD, 2006, Chinese University of Hong Kong • BSC, 2002, Chinese University of Hong Kong

School of Pharmacy Department of Pharmacy Hansen, Ryan Nicholas Research Assistant Professor, Pharmacy, effective 1/1/2015 Prior UW Appointment: • Acting Assistant Professor, temporary, Pharmacy Degrees: • PhD, 2012, University of Washington • PharmD, 2003, University of Washington • BA, 1999, Carroll College (Montana)

Daniel J. Evans School of Public Affairs Daniel J. Evans School of Public Affairs Kioko, Sharon Nduku Associate Professor, Public Affairs, effective 9/16/2015 Degrees: • PhD, 2008, Indiana University • MPA, 2004, Indiana University • BA, 1999, University of Nairobi (Kenya)

University of Washington, Bothell UW Bothell School of Interdisciplinary Arts and Sciences Trumbull, Raissa Desmet Lecturer, Full-time, School of Interdisciplinary Arts and Sciences, Bothell, effective 9/16/2014 Degrees: • PhD, 2013, University of California (Santa Cruz) • BA, 2000, University of California (Santa Cruz)

A–1.1/202-15 Page 7 of 8 2/12/15 University of Washington, Tacoma Institute of Technology, Tacoma Pagano, Mark A Professor, Institute of Technology, Tacoma, effective 3/16/2015 Degrees: • PhD, 1992, Southern Illinois University • MS, 1983, Southern Illinois University • BS, 1979, Southern Illinois University

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A. Academic and Student Affairs Committee

Wellness and Life Skills Development at the University of Washington

For information only.

BACKGROUND

Nationally, colleges and universities are going beyond simply providing treatment services for students with identified mental health concerns, expanding efforts to prevent mental health problems from arising and promote the mental health of all students. In other words, they are adopting a public health approach to address the social and environmental risk factors that influence student mental health (Davidson &Locke, 2010; SPRC, 2004). CampusMHAP (Mental Health Action Planning) recommends that prevention strategies include a continuum of programs that address multiple levels of the social ecological model (Jed Foundation & Education Development Center, 2011).

The Jed Foundation and the Suicide Prevention Resource Center (SPRC) have formulated a comprehensive approach to college mental health promotion and suicide prevention based on the current literature about decreasing risk factors and increasing protective factors about college students (Jed Foundation & SPRC, 2009). • Promote Social Networks • Develop Life Skills • Identify Students at Risk • Increase Help Seeking Behavior • Provide Mental Health Services • Follow Crisis Management Procedures • Restrict Access to Potentially Lethal Means

There is a broad range of programs and activities on each of the three campuses particularly designed to promote social networks and life skill development.

UW BOTHELL

The HEROs (Health Educators Reaching Out), a program designed to deliver health and wellness programming to students on campus and in residence halls, plan events, facilitate workshops, create various resources, campaigns and outreach opportunities for students to improve their health and well-being.

2014/15 initiatives include:

A–2/202-15 2/12/15 VII. STANDING COMMITTEES

A. Academic and Student Affairs Committee

Wellness and Life Skills Development at the University of Washington (continued p. 2)

De-stress with Art and Music Workshop held during Welcome Week to help new students ease into the college lifestyle with stress reduction techniques in their back pocket Social Media and Sleep- Poster campaign to raise awareness of the usage of social media and how it affects sleep Body Acceptance Art Gala to build mindfulness about healthy eating, to empower students to love and respect their bodies, and to learn about the stress that many students experience around body image perceptions Drag Brunch to address LGBT mental and sexual health concerns and to build visible support for LGBT-identified students Affirmation cookies to hand out positive messages and resources to students so that they have the tools to handle stress before it starts Find a New Hobby Event gives students an opportunity to find a new hobby in order to find new ways of relaxing, de-stressing, and coping with exhaustive schedules. Domestic Violence Awareness Month to raise awareness about partner violence and provide information about campus resources that are available to support students experiencing interpersonal violence Finals Stretch Week provides study survival packs, massage therapy, painting… activities that the HEROs host during finals week to help students get through the stress of exams and papers. Sleep Info Graphic - poster campaign with healthy sleep tips

UW TACOMA

Health, Wellness, Education & Promotion (HWEP) is housed in the Office of Student Success (OSS), and operates out of the Division of Student & Enrollment Services (SAES). HWEP supports the overall health, safety, and well-being of the campus community with specific emphasis on outreach education and prevention programming, and provides tools to assist students in the development of lifelong healthy behaviors.

HWEP has sponsored or co-sponsored wellness programming on campus on a variety of topics including but not limited to smoking cessation, breast cancer awareness, depression screening, sexual assault prevention, etc. HWEP also participates in events coordinated by other departments/units aimed at promoting health and wellness on our campus.

HWEP Highlights • Peer Counseling for Resident Assistants; • Culture Shock and Adjustment for International Students;

A–2/202-15 2/12/15 VII. STANDING COMMITTEES

A. Academic and Student Affairs Committee

Wellness and Life Skills Development at the University of Washington (continued p. 3)

• UWT Student Involvement Fairs; • SAB Domestic Violence Awareness; • Health Fairs; • Breast Cancer Awareness; • UWT Resource Fair; • Great American Smoke-Out; • World AIDS Day; • Stress Management for Student Success Mentors; • Kick Butts Day; • Screening of Addictions Inc.; • Co-sponsored speaker Dr. Barry Kerzin (physician to Dalai Lama); • ‘Beating’ Stress Drum Circle; • Weekly Yoga Class; • Mindfulness Based Stress Reduction Class; • Created YouTube channel to post video content.

UW SEATTLE

Peer Health Educators (PHEs) in Health & Wellness is a group of undergraduate and graduate students who facilitate presentations about health issues to groups all over campus, as well as host health related events and advocate for student health in the community.

Huskies for Suicide Prevention and Awareness, an undergraduate Registered Student Organization, sponsors a variety of events throughout the academic year to promote awareness of suicide and mental health concerns among students and to provide support for survivors of suicide.

The Mindfulness Project is a new student-led initiative that is gaining some traction on the Seattle Campus. The UW Mindfulness Project's (UWMP) goal is to create a space on campus where the UW community can actively maintain their mental and emotional wellbeing by engaging in self-reflection and mindfulness- based practices. Mindfulness simply refers to the act of "paying attention, in the present moment, without judgment." Last year UWMP gathered 176 signatures from presidents and leaders of other RSOs across campus who supported this initiative. They have also networked extensively with staff and faculty on campus who are supportive of their goals. Currently UWMP is offering free yoga and meditation classes as well as mindfulness topic seminars on campus Sunday through Thursday evenings at 6-9pm. Their hope is to establish a more permanent space on campus to provide services to a larger percentage of UW students. They are also interested in transitioning from being a student-run organization to an

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A. Academic and Student Affairs Committee

Wellness and Life Skills Development at the University of Washington (continued p. 4)

entity of UW Student Life so as to ensure sustainability of the program. They have created a website that explains more about the project, including their vision: www.uwmindfulnessproject.com.

The Daily also wrote two articles about UWMP which can be found here: UW Mindfulness Project encourages students to 'connect and reflect' Mindfulness Mission

Attachment Student presenter’s biographical information

A–2/202-15 2/12/15 Wellness and Life Skills Development Student Presenter’s Biographical Information

Alysha Greig is a native of the Seattle area. She is a sixth year undergraduate philosophy major and Mary Gates Leadership Scholar at the University of Washington.

Alysha founded the UW Mindfulness Project (UWMP) in Fall of 2013 and currently serves as the director of this student-run organization. Before working on UWMP, Alysha also founded and served as president of the yoga club on campus (Yogis at UW, YUW) from 2011-14 which provided free yoga to over 300 members of the club. She also was the co- founder and vice-president of Huskies for Suicide Prevention and Awareness (HSPA) from 2011-13 which raised $20,000 for the American Foundation for Suicide Prevention and Awareness.

Through Alysha's work with these student organizations on campus, she noticed the high demand for self-care and self-reflective practices on campus, this lead to her work with UWMP which strives to create a space on campus for mindfulness- based practices. Alysha took time off from school as a sophomore after experiencing severe depression and feeling lost on such a big college campus. During this time she also got certified to teach yoga and has been doing so for three and a half years. She believes that studying oneself in college is just as important as studying anything else.

ATTACHMENT A–2.1/202-15 Page 1 of 1 2/12/15 A–3 VII. STANDING COMMITTEES

A. Academic and Student Affairs Committee

Research-Based Innovations in Teaching and Learning at the University of Washington

For information only.

BACKGROUND

Among public flagship research universities, the University of Washington has become a leader in dynamic, forward-thinking teaching as well as in research. Only the second public flagship research university in the country to establish a center for research in teaching and learning, the UW for over 25 years provided national leadership on improving instruction across disciplines. The UW also became known for creating a Teaching Academy comprised of Distinguished Teaching Award recipients who offer teaching workshops to colleagues as well as a new faculty orientation to teaching at the UW.

In 2010, the UW created a vibrant new model, the Center for Teaching and Learning (CTL), for advancing teaching, learning, and mentoring on campus. This model—uniquely co-sponsored by the UW Libraries, the Graduate School, and Undergraduate Academic Affairs—drew together efforts across units and colleges to create a single, integrated center that uses research-based best practices to seed effective innovations in teaching and learning. The CTL's programs and services are informed by 21st-century scholarship, emergent technologies, changing demographics, and global teaching initiatives. Key to the CTL's success is a commitment to collaboration, innovation, and sustainability.

The CTL has designed new faculty development models and piloted programs based on new research, some of it conducted and published by UW faculty members and colleagues such as Ed Taylor and Cathy Beyer. Aiming to discover why faculty members change their teaching (when no one asks them to), Taylor et al found that faculty members relish learning from colleagues. The CTL embraced a "learning community" model initiated at Miami University, transforming it to reflect UW's distinctive mission, resources, and faculty needs. In addition, the CTL designed hybrid forms of interactive teaching support that modeled the use of technologies for learning. The "one-and-done" workshop model, no longer a best practice, was scrapped in favor of a series of facilitated conversations on a single topic or a department's desire for assistance in transforming curricula.

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A. Academic and Student Affairs Committee

Research-Based Innovations in Teaching and Learning at the University of Washington (continued p. 2)

Center for Teaching and Learning Programs

Teaching Assistant/Research Assistant Conference & Hybrid Course

More than 700 graduate students from dozens of departments participate in a series of interactive sessions designed to prepare them for their first teaching experience. All sessions—teaching a lab section, discussing difficult topics, grading quizzes, designing writing assignments—are led by advanced or lead T.A.s who have been trained by CTL consultants. Over 200 of the participants take a new hybrid course that engages them on best practices, policies and professionalism, the scholarship of teaching and learning, and peer learning. The CTL also offers reunions for conference participants, where graduate instructors share discoveries and cautions.

Faculty Fellows Program

In 2014, 93 new faculty members from the three campuses convened to learn about UW teaching cultures, practices, and resources. This long-standing program, a national model, now includes research-based, interactive plenary sessions on "The End of Lecture" and "Inclusive Teaching and Learning Across the Disciplines." It also offers concurrent sessions—academic integrity education, working with TAs—that are facilitated by Distinguished Teaching Award recipients. Quarterly lunch reunions feature questions, answers, and discussion about teaching and learning topics at the UW.

Teaching & Learning Symposium

This annual event features posters and presentations of UW research on teaching and learning. Faculty members, sometimes working with teams of undergraduates and TAs, as well as research librarians and post-doctoral candidates share their research, which focuses on student learning and engagement. Participants describe the measures they use to evaluate the success of the project. Keynote speakers and panels are chosen for the impact of their research on teaching and learning, as well as their expertise in research-based teaching. In 2015, the symposium will be held on Tuesday, April 14, 2:00 to 4:30 pm in the HUB Ballroom.

Faculty and Professional Learning Communities

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A. Academic and Student Affairs Committee

Research-Based Innovations in Teaching and Learning at the University of Washington (continued p. 3)

Groups meet every other week for one quarter to explore teaching topics that have included the following: using social media for student learning; peer learning in large courses; active learning in large lecture classes; and creating inclusive online learning spaces. Some of the groups are cohort-based, such as "faculty and staff of color" or "graduate students." The groups determined their agenda, and discussions are facilitated by CTL faculty and staff or partner faculty, who provide resources, direction, and coaching as needed. In 2013-14, CTL hosted 12 Faculty and Professional Learning Communities, engaging more than 150 faculty and graduate students.

Best Practices

The CTL's web site offers interactive resources on best practices around teaching, learning, and mentoring. "At the Center," a blog on best practices, features posts by UW faculty members and graduate students on everything from academic integrity and multilingual students to creating effective teams of peer learners. The site uses short videos starring UW faculty, crowd-sourcing, and links to resources that provide instructors with "just in time" inspiration for their teaching. A hub for UW discussions about teaching and learning, the site is also visited by colleagues at other universities. The CTL's Facebook page is followed by faculty, students, and community members because of its lively masala of blog posts, articles, features on UW faculty and graduate students in the news, cartoons, and advocacy.

Technology Teaching Fellows Institute

A donation secured by the provost and president funded an Institute for faculty members who wanted to transform their courses from a face-to-face format to a hybrid or online format. Co-sponsored by the Provost's Office, UW-IT, and the CTL, the Institute funded three cohorts of faculty from a range of colleges and disciplines. An immersive week of workshops, studio time, collaborative study, and one-to-one coaching from learning technologists and instructional consultants was followed by course re-design, peer review of courses, teaching the courses, and presenting the results of the transformation to two faculty groups, inspiring colleagues and seeding innovations across campus. Through this initiative, 59 faculty from 25 departments have revised or created courses (many of them large lecture courses), benefitting more than 5,000 students annually.

Waseda/UW Joint Center for Teaching, Learning, and Technology

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A. Academic and Student Affairs Committee

Research-Based Innovations in Teaching and Learning at the University of Washington (continued p. 4)

The UW's long-time partnership with Waseda has advanced to include a jointly developed Center for Teaching, Learning, and Technology. Co-sponsored by the Provost's Office, the Office of Global Affairs, UW Educational Outreach, and the CTL, this initiative features collaborative groups of UW and Waseda faculty members discussing innovative, evidence-based best practices and pilot projects in classroom research.

Graduate School Courses

The Graduate School has enhanced and developed its curriculum in order to provide graduate students with rich opportunities for professional development, with a special focus in (1) teaching and learning in higher education and (2) moving successfully from campus to career. These 1-3 credit courses draw students from many departments and fill quickly. Taught by CTL faculty and staff, the courses prepare students to design courses and assignments that draw on best practices, thoughtful use of technologies that support student learning, and inclusive teaching practices. Individual departments have begun asking for discipline-specific courses from the CTL for their own students. And student assessments convey that the courses have enormous value to them as teaching scholars and professionals.

Attachment Presenters’ biographical information

A–3/202-15 2/12/15 Research-Based Innovations in Teaching and Learning Presenters’ Biographical Information

Colleen Foley Craig received her PhD in Chemistry at the University of Washington in 2006. Since then, she has taught Chemistry at Western Washignton University, Seattle Central Community College, and all three UW campuses. She has been a Lecturer in the Department of Chemistry at University of Washington since 2012.

At UW Seattle, Colleen has provided departmental and campus leadership in curriculum design and innovative teaching. In 2010, she helped orchestrate the implementation of the online chemistry tutorial system ALEKS for the general chemistry series, which enrolls 3000 students annually. She now serves at the departmental ALEKS administrator and has conducted studies that show increased learning gains in ALEKS relative to the traditional online homework. She has presented her results at two national meetings of the American Chemical Society.

Dr. Craig has also been active in educational outreach. Since 2011, she has served as the Departmental Coordinator for UW in the High School and has developed a version of UW’s “prep chem” course for delivery at Washington state high schools. She also submitted a successful proposal to the inaugural Technology Teaching Fellows Program in 2013 to renvision the on-campus version of prep chem as a hybrid course. The ensuing course transformation incorprates recent advances in learning theory and has, according to several measures, increased student learning and engagement.

When she is not working on her courses and curriculum projects, Colleen enjoys knitting, yoga, reading, and binge-watching TV shows.

Katherine A. Snider is completing her Ph.D. at the University of Washington, Seattle, where she also received her Master's in French Studies and where she is currently Lead TA of the French department. She received her BA Honors in French from Knox College with a second major in Creative Writing, and represents the second generation of her family to go to college.

Her research focuses on French medieval literature and cultural approaches to the environment, non-humans and the supernatural. She has presented her research at the International Congress on Medieval Studies in Kalamazoo, Michigan, where she was born. Katherine has also given a presentation to the Medieval Graduate Student Interest Group at the UW campus and participated in Scholar’s Studio @theCommons (Water Research).

ATTACHMENT A–3.1/202-15 Page 1 of 2 2/12/15 As Lead TA of the French department, she has gained useful insight into the coordination of a language program at the 100- and 200-level and has had the opportunity to act as mentor to graduate and undergraduate students. GradSchool 630 provided her with concrete resources for her job search in the safe space of peer workshop and praticum, an experience which she has shared with and recommended to her fellow grad students.

After graduating from Colby College with a B.A. in biology, Kristi Straus served as a Peace Corps Volunteer in Morocco for two years, focusing on health education and clean water. She earned her Ph. D. in Aquatic and Fishery Sciences from UW in 2010 and has since served as a lecturer in Environmental Studies. While teaching in the Program on the Environment (PoE), Dr. Straus developed and implemented a middle- school science curriculum through BioEngineering and Anesthesiology. She also teaches Marine Biology through Seattle MESA. Dr. Straus is passionate about marine science, environmental conservation, effective teaching, and education equity.

Dr. Straus was honored to be selected as a Teaching Technology Fellow in the spring of 2014. As a Fellow, she transformed the Introduction to Environmental Studies class to include more multidisciplinary voices in the classroom through video, expanded online content, and increased active learning in class. Although Dr. Straus will not teach this transformed class until spring quarter, the fellowship has had a terrific impact on student learning in other classes as she’s used the skills developed through the TTF to increase student engagement in-class while creating a better community online. Similar changes are also being made by Dr. Straus’ colleagues at PoE after she shared the TTF rubric for course re-design and presented about using technology to increase course accessibility, community, and engagement. This quarter, Dr. Straus is incredibly excited about the new class she is teaching—ENVIR 239: Sustainable Choices—which asks students to think critically about their own habits, sustainability, and the limits of personal action. Additionally, Dr. Straus is, because of her work as a Tech Teaching Fellow, engaging in the scholarship of teaching and learning.

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B. Finance and Asset Management Committee

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2

November 2011 Informational Update

INFORMATION J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

2013 2014 2015 2016

PHASES

2013 2014 2015 2016

ACTION J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

February 2013 March 2015

Adopt Budget, Select Architect, Phase 2 Change Architect,

Delegation of Authority to Award Delegation of Authority to Award

Construction Contract Engineering Contract

RECOMMENDED ACTIONS

In February 2013, PLACE Studio (landscape architects) of Portland, OR, was appointed by the Board of Regents as the architect “prime” consultant for the Burke Gilman Trail Corridor (BGTC) Phase 1 and 2 projects.

For performance reasons, the design team on the BGTC Phase 1 project was restructured. Under delegated authority, PLACE Studio’s (PLACE) contract was terminated and KPFF Consulting Engineers (KPFF), the project the civil and structural engineering subconsultant, was appointed as the project engineer and PLACE Studio (PLACE) was assigned as the design subconsultant. KPFF was awarded an engineering agreement on January 14, 2015, for Phase 1.

It is the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents:

1) Make a similar change to the BGTC Phase 2 project to select KPFF as the engineer and delegate authority to the President to award a design contract for the Burke Gilman Trail Corridor Phase 2 to KPFF, subject to successful negotiation of an engineering agreement.

PROJECT BACKGROUND

The BGTC, constructed in 1978, is a Rails-to-Trails bicycle and pedestrian thoroughfare. From the northeast, it enters campus just north of the Plant Services Building at NE 47th Street and runs south along the west side of F–1/202-15 2/12/15 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2 (continued p. 2)

Montlake Boulevard, turning west at the Rainier Vista and follows NE Pacific Street, then NE Cowlitz Road and NE 40th Street until it exits campus west of the Benjamin Hall Building at Pasadena Place NE.

The BGTC is widely used by bicycle commuters coming to the University as well as those passing through the campus, and serves as the backbone of the regional bicycling network in the northern part of Seattle. It is also widely used by pedestrians moving to, within and across the University campus. These multiple uses and interfaces between the campus community and the BGTC create conflicts and safety issues that need to be addressed for effective pedestrian and bicycle movement on and around the trail. The number of users has far exceeded the initial projections. Recent user counts have demonstrated that the BGTC, as it passes through campus, has the highest combined bicycle and pedestrian volume of any shared use path in the state.

The consequences of the current overcapacity of the BGTC are twofold, 1) there are significant safety issues resulting from overcrowding and user conflicts; and 2) there is a bottleneck that occurs in the vicinity of the upper campus bridge connection to the Magnuson Health Sciences Center complex that limits the ability of the corridor to accommodate additional users now and in the future. Other safety issues are related to inadequate lighting, poor management of crossing movements, outdated roadway crossing designs, insufficient sight lines, and a lack of ADA access features.

PROJECT SCOPE

The Burke Gilman Trail Corridor Phase 2 will develop design and construction documents for the remainder of the trail from Pasadena Place NE at the western edge of the Seattle Campus to NE 47th Street, excluding the work at Phase 1 (NE 15th Ave to the intersection of NE Pacific Street and NE Pacific Place) and the Montlake Trail Project Improvements. Phase 2 includes an underpass for the BGTC at the Pend Oreille Road for improved safety and mobility. Design and construction documents will be developed consistent with Federal Highway Administration standards, as appropriate and will be developed in context with the other developments in the vicinity. It is anticipated that actual construction projects to improve the BGTC will be accomplished in phases, as funding allows.

PLACE was appointed by the Board of Regents in February 2013 as the “Prime” consultant for the Burke Gilman Trail Corridor Phase 1 and 2 projects. The intent was that PLACE would design phase 1 and 2. The BGTC Phase 1 is to be

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B. Finance and Asset Management Committee

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2 (continued p. 3)

constructed with available funds and Phase 2 will be constructed as funds become available. PLACE has consistently missed project design milestones for Phases 1 and 2, causing delays and potential cost increases due to market escalation. In July 2014, 9 months late, bids were received for construction on Phase 1. The low bid was significantly over budget at $6.2 million compared to the construction budget of $3.8 million.

The BGTC Phase 1 work is being redesigned to develop cost savings and will be rebid this summer. To improve the performance of the design team the team was recently restructured so that KPFF would become the prime consultant and PLACE would be the design subconsultant. KPFF is currently working successfully on the Montlake Triangle project and has previously completed projects for the University. KPFF is experienced with the WSDOT requirements for the funding of Phase 1 and the potential future funding for Phase 2.

SCHEDULE

Predesign (Concept Plan) December 2011 - November 2012 Consultant Selection November 2012 - December 2012 Design – Phase 1 January 2013 - June 2015 Design – Phase 2 July 2013 - September 2015 Construction Phase 1 August 2015 – March 2016 Construction – Phase 2 Dependent upon Funding

PROJECT BUDGET AND FUNDING

Funding for the design and construction of Phase 1 and the design of Phase 2 is provided by Transportation Services and the Puget Sound Regional Council (PSRC). Estimating the cost of the Phase 1 work is very difficult with its unique project type and in this very dynamic bidding market. As we approach the bidding we will refine the estimate. If the project budget exceeds the approved budget by more than 10% we will report it to the Board of Regents as an Action Taken Under Delegated Authority. No University debt funding will be used in the project. No donor funding is being contemplated nor are any naming opportunities envisioned.

F–1/202-15 2/12/15 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Burke Gilman Trail Corridor Phases 1 and 2 – Action Taken Under Delegated Authority to Revise the Design Team for Phase 1 and Request a Change in the Architect for Phase 2 (continued p. 4)

Funding Sources: Phase 1 Design and Construction; Phase 2 Design

Transportation Services Design Phase 1 and 2 $1,500,000 Transportation Services, Construction Phase 1 $1,552,103 Puget Sound Regional Council $3,026,311 Total $6,078,414

Separately, we have estimated a preliminary project cost for the construction of the BGTC Phase 2 at approximately $21 million in 2014 dollars (non-escalated). Combined, the current total estimated cost of Phases 1 and 2 is approximately $27 million in 2014 dollars (non-escalated), for the University-owned portion of the BGTC. When funding is identified for the construction of Phase 2, a future action to establish the budget and funding will be presented to the Board of Regents.

PREVIOUS ACTIONS

February 2013 Adopt Project Budget for Phase 1 Design and Construction and Phase 2 Design, Select Architect for Phases 1 and 2, and Delegate Authority to Award a Construction Contract for Phase 1

F–1/202-15 2/12/15 F–2 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Approve Amendment to the Effective Date of the University of Washington 401(a) Supplemental Retirement Plan

RECOMMENDED ACTION

It is the Recommendation of the Finance, Audit and Facilities Committee that the Board of Regents (the “Regents”) approve amendment of the University of Washington 401(a) Supplemental Retirement Plan (the “UWSRP”), which is required in order to rely on the IRS determination letter, dated November 7, 2014.

The UWSRP was split out from the University of Washington Retirement Plan by Regent action effective January 1, 2009. The UWSRP is a defined benefit plan intended to be qualified under Internal Revenue Code Section 401(a).

EXPLANATION OF PROPOSED CHANGES

In order to comply with regulatory requirements promulgated by the IRS, and in order to rely on the November 7, 2014 favorable determination letter from the IRS, the University must amend the UWSRP’s effective date. This document incorporates all amendments that have been approved by the Regents to date, including the most-recently approved amendment of November 13, 2014.

Attachment University of Washington 401 (a) Supplemental Retirement Plan, Amended and Restated, Effective January 1, 2014

F–2/202-15 2/12/15 UNIVERSITY OF WASHINGTON 401(a) SUPPLEMENTAL RETIREMENT PLAN

Amended and Restated, Effective January 1, 2014

39339023_4 F–2.1/202-15 ATTACHMENT 2/12/15 TABLE OF CONTENTS

Article Page

ARTICLE 1. INTRODUCTION ...... 1 1.1. Amendment and Restatement...... 1 1.2. 401(a) Status...... 1 ARTICLE 2. DEFINITIONS ...... 1 2.1. “Average Annual Salary” ...... 1 2.2. “Basic Salary” ...... 1 2.3. “Beneficiary” ...... 1 2.4. “Board” ...... 1 2.5. “Break in Service” ...... 1 2.6. “Code” ...... 1 2.7. “Eligible Employee” ...... 1 2.8. “Eligible Position” ...... 2 2.9. “Fixed Annuity” ...... 2 2.10. “Month of Service” ...... 2 2.11. “Participant” ...... 2 2.12. “Plan” ...... 2 2.13. “Plan Year” ...... 2 2.14. “Retirement Age” ...... 2 2.15. “Trust” ...... 2 2.16. “Trustee” ...... 2 2.17. “USERRA” ...... 3 2.18. “UW” ...... 3 2.19. “UWRP” ...... 3 2.20. “Variable Annuity” ...... 3 2.21. “Washington State Retirement System” ...... 3 2.22. “Year of Service” ...... 3 ARTICLE 3. PARTICIPATION ...... 4 3.1. Commencement of participation...... 4 3.2. Cessation of participation...... 4 ARTICLE 4. RETIREMENT ...... 4 4.1. Retirement because of age...... 4

-i- 39339023_4 F–2.1/202-15 2/12/15 4.2. Retirement because of condition of health...... 4 4.3. Retiree reemployment...... 4 ARTICLE 5. BENEFITS ...... 4 5.1. Vesting...... 4 5.2. Amount of benefit...... 5 5.3. Assumed annuity benefit offset...... 5 5.4. Alternative method of benefit calculation...... 6 5.5. Death benefit...... 6 5.6. Form of distribution...... 6 5.7. Application for benefits: spousal consent...... 6 5.8. Application for benefits...... 7 5.9. Benefit payments...... 7 5.10. Minimum distributions...... 7 5.11. Maximum benefit...... 7 5.12. Forfeitures...... 7 ARTICLE 6. ADMINISTRATION ...... 7 6.1. Plan administration...... 7 6.2. Authority of UW...... 7 6.3. Requests for information...... 8 6.4. Payment of expenses...... 8 ARTICLE 7. FUNDING...... 8 7.1. Trust agreement or declaration...... 8 7.2. Exclusive benefit of Participants...... 8 7.3. Return of contributions...... 8 ARTICLE 8. AMENDMENT AND TERMINATION ...... 8 8.1. Amendment and termination...... 8 8.2. Limitation...... 8 ARTICLE 9. MISCELLANEOUS ...... 9 9.1. Non-alienation of benefits...... 9 9.2. Plan does not affect employment...... 9 9.3. Claims of other persons...... 9 9.4. Governing law...... 9

ii 39339023_4 F–2.1/202-15 2/12/15 ARTICLE 1. INTRODUCTION

1.1. Amendment and Restatement. This document amends and restates the University of Washington 401(a) Supplemental Retirement Plan, amended and restated effective January 1, 2014.

1.2. 401(a) Status. The Plan is a governmental plan as defined in Code section 414(d) intended to qualify under Code section 401(a), and shall be construed accordingly.

ARTICLE 2. DEFINITIONS

2.1. “Average Annual Salary” means the average annual Basic Salary paid to a Participant for his or her highest 24 consecutive Months of Service.

2.2. “Basic Salary” means the salary received by a Participant under the terms of his or her appointment, including any summer appointments, but excluding other extended appointments. Basic Salary shall be determined before taking into account any salary reduction under Code sections 125, 132, 403(b) or 457(a). Basic Salary shall exclude leave cash-out payments, any settlement, severance or tenure purchase payments, and any other amounts that are not taken into account in computing UWRP contributions. For any Participant who first became a participant in this Plan or the UWRP on or after July 1, 1996, Basic Salary shall not be taken into account for any Plan Year in excess of $260,000 (or such other limit as shall apply for such Plan Year under Code section 401(a) (17)). For purposes of this Section 2.2, effective January 1, 2009, “Basic Salary” shall include any differential wage payment (as defined in Code section 414(u)(12)(D)) paid to an individual by UW to the extent required under Code section 414(u)(12) (and, to the extent required by Code section 414(u)(12)(A)(i), such an individual shall be treated as an employee).

2.3. “Beneficiary” means the surviving spouse of the Participant or, with the written consent of such spouse, if any, such other person or persons as shall have an insurable interest in the Participant’s life and shall have been nominated by written designation duly executed and filed with the UW Benefits and WorkLife Office.

2.4. “Board” means the Board of Regents of the University of Washington.

2.5. “Break in Service” means termination of all UW employment and appointments for a full calendar month.

2.6. “Code” means the Internal Revenue Code of 1986, as amended (Title 26 of the United States Code).

2.7. “Eligible Employee” means any employee of UW who either

(a) is (and was on February 28, 2011) employed in an Eligible Position (as defined), other than an employee who has retired from a position which is covered by RCW 28B.10.400 et seq.; or

39339023_4 F–2.1/202-15 2/12/15 (b) was an employee of UW who was employed in an Eligible Position (as defined) but who, before February 28, 2011, was moved to or whose position was converted to a position that qualifies for participation in a Washington State Retirement System, and who has irrevocably elected to remain in the UWRP under UWRP Section 3.1(c).

This provision shall not adversely affect the right of any individual who on February 28, 2011 has satisfied all conditions for receiving benefits under the Plan to receive those benefits.

2.8. “Eligible Position” means an academic, research, librarian, professional, or other salaried position designated by the Board that requires at least fifty percent of the normal full- time workload per month in at least six consecutive months. However, a position held by a person on a fee, retainer, or special contract basis, or as an incident to the private practice of a profession or to the employee’s education, is not an Eligible Position. The job classes of resident (job code 0328), chief resident (job code 0329) and fellow (job code 0444) shall also be considered Eligible Positions. An Eligible Employee, once having begun participation in this Plan, shall be deemed to be employed in an Eligible Position even if his or her position no longer requires at least fifty percent of the normal full-time workload per month in at least six consecutive months, so long as the position otherwise qualifies as an Eligible Position.

2.9. “Fixed Annuity” means a Retirement Annuity contract issued by Teachers Insurance and Annuity Association (“TIAA”) under which 100% of the accumulation is invested in the TIAA Traditional Account.

2.10. “Month of Service” is a calendar month throughout which the employee is employed in an Eligible Position with 50 percent or more of the normal full time work load. If the employee is so employed for only a fraction of a month, prorated credit shall be given for that month.

2.11. “Participant” means any Eligible Employee who participates in the Plan in accordance with Article 3.

2.12. “Plan” means the University of Washington 401(a) Supplemental Retirement Plan set forth in this document as it may be amended from time to time and, prior to January 1, 2009, as set forth in Part III of the UWRP plan document.

2.13. “Plan Year” means July 1 through June 30.

2.14. “Retirement Age”: Normal Retirement Age means the last day of the calendar month in which age 65 is attained; Early Retirement Age means the last day of the calendar month in which age 62 is attained.

2.15. “Trust” means the trust established to hold and invest assets of the Plan.

2.16. “Trustee” means the trustee or trustees appointed by UW to administer the Trust.

2 39339023_4 F–2.1/202-15 2/12/15 2.17. “USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994.

2.18. “UW” means the University of Washington.

2.19. “UWRP” means the University of Washington Retirement Plan.

2.20. “Variable Annuity” means a variable Retirement Annuity certificate issued by College Retirement Equities Fund (“CREF”) under which the entire accumulation is invested in the CREF Stock Account.

2.21. “Washington State Retirement System” or “System” means any retirement system paid for by the State of Washington and administered by the State of Washington Department of Retirement Systems.

2.22. “Year of Service” is a Plan Year in which the employee completes at least five Months of Service, excluding Months of Service before a prior Break in Service (if any) and, after July 1, 1979, any Months of Service for which no contributions were made under the UWRP or any other plan established pursuant to RCW 28B.10.400. Authorized leaves of absence will also be included, as will periods of absence in the uniformed services to the extent provided in USERRA. Without limiting the generality of the foregoing, to the extent required under Code section 401(a)(37), in the case of a Participant who dies on or after January 1, 2007 while performing qualified military service, (i) the Participant's survivors are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed employment with UW in accordance with his or her reemployment rights under USERRA and then terminated employment on account of death and (ii) the deceased Participant shall be credited with service for vesting purposes for his or her period of qualified military service. A Participant's Years of Service will also include his or her credited Years of Service in a position covered by RCW 28B.10.400 et seq. or in a UW position covered by a Washington State Retirement System, provided that, with regard to the Washington State Retirement System, (a) the Participant transfers directly from the System to the UWRP, (b) the Participant was vested and will receive a retirement income benefit from such System, (c) service that has been withdrawn or for which a retirement income was begun prior to UWRP retirement does not count, and (d) the Participant signs a release within 60 days after the application for benefits, as needed to obtain the relevant information from the System. Any retirement income benefit that he or she is eligible to receive under the System attributable to Years of Service that are covered under the preceding sentence shall be included in the assumed benefit offset described in Section 5.3. Except as otherwise provided in USERRA, an employee may receive credit for no more than two years during his or her entire working career for periods of authorized leave without pay, provided that the employee contributes both the employer and employee contributions under the UWRP while on authorized leave, and returns to the employment of UW immediately following the leave for a period of not less than two years. The employee and employer contributions shall be based on the average of the employee’s compensation at the time the leave of absence was authorized and the time the employee resumes employment. However, the benefit provided by this Plan shall be based only on the Participant’s Basic Salary earned from employment with UW.

3 39339023_4 F–2.1/202-15 2/12/15 ARTICLE 3. PARTICIPATION

3.1. Commencement of participation. An Eligible Employee begins (or began) participation in this Plan on the later of (a) the date he or she begins (or began) participation in the UWRP or (b) the beginning of the first period for which the Eligible Employee has made a contribution under the UWRP.

3.2. Cessation of participation. A Participant will continue to be a Participant so long as he or she continues to contribute under the UWRP (except while on authorized leave), and shall cease to be a Participant in this Plan when he or she ceases to contribute under the UWRP.

ARTICLE 4. RETIREMENT

4.1. Retirement because of age. On the first of any month after attaining age 62, a Participant who is actively employed by UW may elect to retire by submitting a written resignation to his or her superior and a retirement application to the UW Benefits and WorkLife Office. A person is ineligible for any benefit under this Plan if he or she ceases to be a Participant prior to age 62 for reasons other than retirement because of condition of health as described in Section 4.2.

4.2. Retirement because of condition of health. A retirement because of condition of health may be approved by the President of UW upon request by a Participant or by the administrative officer concerned. The basis for approval is whether continued service by the Participant is likely to seriously impair or endanger the Participant’s health, or if the Participant is permanently unable to carry on his or her usual duties because of health. A request for retirement because of condition of health is referred to the Executive Director of Benefits & WorkLife, who will convene the Special Board on Retirement Because of Health. The recommendations of the Special Board on Retirement Because of Health are presented to the President of UW. The Special Board consists of the Dean of the School of Medicine, the Executive Director of Benefits & WorkLife, one physician appointed by the Faculty Senate for a term of three years, and two Participant representatives selected by the Vice President, Human Resources after consultation with the Faculty Senate and other Participant groups.

4.3. Retiree reemployment. Retiree reemployment means the reemployment of a former Participant up to 40% of full time following the date of retirement under Section 4.1. Such reemployment shall be subject to all applicable UW rules. Such reemployment after retirement will not be counted as service under the Plan nor result in any eligibility for increased benefits under the Plan. A reemployed retiree who retired under this Plan or the UWRP is not a Participant under the Plan.

ARTICLE 5. BENEFITS

5.1. Vesting. A Participant vests in his or her benefit under this Plan if all of the following are true:

(a) The Participant has reached age 62 while employed by UW or retires under Section 4.2, and

4 39339023_4 F–2.1/202-15 2/12/15 (b) The number of his or her Years of Service is ten or more, and

(c) The amount of his or her benefit, as calculated under Section 5.2, is a positive amount.

The vested benefit payable to the Participant shall commence upon the Participant’s retirement.

5.2. Amount of benefit. The monthly amount of lifetime benefit payable to an eligible retired Participant is the amount determined by UW at the time of retirement to be the excess, if any, of

(a) One-twelfth of two percent of the Participant’s Average Annual Salary multiplied by the number of his or her Years of Service (such product not to exceed one- twelfth of 50% of the Participant’s Average Annual Salary) over

(b) The amount of the assumed annuity benefit offset the retired Participant would receive in the first month of retirement, calculated as provided in Section 5.3.

The percentage factor in (a) above shall be 1.5 percent instead of 2 percent for any Month of Service commencing on or after July 1, 1974, during any portion of which the Participant, having attained the age of fifty, had not elected to participate in the UWRP at the 10% plan contribution rate. The benefit hereunder is reduced by .5% times the number of full calendar months that benefit payments begin prior to Normal Retirement Age; however, if the Participant was given a retirement because of condition of health under Section 4.2, this reduction will not apply.

5.3. Assumed annuity benefit offset. The assumed annuity benefit offset for a married Participant is equal to the amount of monthly benefit from the Fixed and Variable Annuities calculated as a joint and survivor annuity with two-thirds of the benefit to the survivor, with the Participant’s spouse as the survivor (using the spouse’s actual age, if within five years of the Participant’s age; otherwise, using the age closest to the spouse’s age that is five years less than or five years greater than the Participant’s age). For an unmarried Participant, the benefit offset is calculated as a single life annuity with a ten-year guaranteed period. In either case, the assumed annuity benefit offset will be the amount estimated by UW at the time of retirement. The following assumptions shall be used in computing the assumed annuity benefit offset:

(a) Benefit calculations related to contributions under the UWRP shall be computed on the assumption that the Participant had allocated 50 percent of such contributions to the Fixed Annuity and 50 percent of such contributions to the Variable Annuity and made no subsequent transfers from these accounts.

(b) Any portion of a Participant’s accumulation account under the UWRP which is awarded by a court to such person’s spouse under a domestic relations order is included in any subsequent calculation of the benefit under the UWRP as if such portion had remained in the Participant’s accumulation account under the UWRP until the date of retirement.

5 39339023_4 F–2.1/202-15 2/12/15 (c) Annuity accumulations attributable to any additional voluntary employee contributions, beyond those provided for in the UWRP, and any contributions paid through employers other than State of Washington institutions of higher education, are excluded.

(d) All benefits that a retired Participant is eligible to receive from a plan established pursuant to RCW 28B.10.400 or (to the extent attributable to Years of Service) from a Washington State Retirement System shall be included in the assumed annuity benefit offset to the same extent as if received from the UWRP.

5.4. Alternative method of benefit calculation. The monthly amount of the benefit for a participant whose Months of Service began not later than October 1, 1955, is the greater of

(a) The benefit defined in Section 5.2; or

(b) The supplemental benefit that would have been provided the Participant under the rules of the UWRP in effect on June 30, 1974.

5.5. Death benefit. If a Participant dies while eligible for benefits under the Plan after attaining age 62, the benefit, if any, payable to the Participant’s Beneficiary shall be equal to the benefit that the Beneficiary would have received if the Participant had begun to receive retirement income on the first day of the month following the month in which the Participant’s death occurs and had elected a two-thirds benefit to survivor option with the Beneficiary as the survivor.

5.6. Form of distribution. Benefits under the Plan are to be received as lifetime income and may only be made over (a) the life of the retiree, or (b) at the written election of the retiree, the lives of the retiree and a Beneficiary, in any form of lifetime annuity made available by UW that does not include a guarantee period. If option (b) is chosen, the actuarially equivalent income shall be computed using the dividend, interest and mortality basis then in effect for the Fixed Annuity. Any form of distribution hereunder to a married Participant, other than a joint and survivor form under which the spouse to whom the Participant is married at the time of the election hereunder receives a survivor annuity equal to 50% or more of the lifetime annuity payable to the Participant, requires the consent of the Participant’s spouse at the time of the election hereunder, in accordance with Section 5.7. Once an election has been made hereunder, the form of distribution may not be changed at any later time for any reason, including (without limitation) remarriage of the Participant, provided that in the event of a Beneficiary’s death (or any other change in circumstances) before the starting date of any annuity payments a new Beneficiary may be designated by the Participant prior to that starting date. Benefit payments are made in equal monthly installments or more frequently, consistent with UW’s payroll practices. At the election of UW, the supplemental payment may be made at longer intervals if the installments for a Participant or his or her Beneficiary would otherwise be less than a minimum amount established from time to time by the UW Benefits and WorkLife Office.

5.7. Application for benefits: spousal consent. To begin receiving benefits, the Participant or Beneficiary must write directly to the UW Benefits and WorkLife Office. The

6 39339023_4 F–2.1/202-15 2/12/15 UW Benefits and WorkLife Office will provide the necessary forms to the Participant or the Beneficiary. UW will pay benefits upon receipt of a satisfactorily completed application for benefits and supporting documents. In any case in which the consent of the Participant’s spouse is required, the consent must be in writing, must acknowledge the effect of the election or action to which the consent applies, and must be witnessed by a notary public. Unless the consent expressly provides that the Participant may make further elections without further consent of the spouse, the consent will be effective only with respect to the specific election of form of benefit, or Beneficiary, or both, to which the consent relates. Spousal consent will be effective only with respect to that spouse. Spousal consent will not be required if it is established to the satisfaction of the UW Benefits and WorkLife Office that the spouse cannot be located.

5.8. Application for benefits. Procedures for calculation of the benefits under this Plan are initiated by submitting an “Application for Retirement” form to the UW Benefits and WorkLife Office.

5.9. Benefit payments. Any benefits that become payable under this Article 5 will be paid from the general assets of UW, unless paid from the Trust. If benefits are paid from general assets of UW, they shall be treated as a contribution to the Trust and payment by the Trust. Nothing in this Plan will be construed to create a trust or obligate UW to segregate a fund, purchase an annuity contract, or fund in any other way the future payment of any benefits under this Plan.

5.10. Minimum distributions. All benefits under this Plan will be made in accordance with Code section 401(a)(9) and the regulations thereunder. Minimum distributions must begin no later than April 1 of the calendar year following the calendar year in which the Participant attains age 70%2 or, if later, April 1 following the calendar year in which the Participant retires from UW. Upon the Participant’s death after the time benefits are required to begin hereunder, any remaining benefits will be distributed at least as rapidly as under the method of distribution in effect at the time of the Participant’s death. If the Participant dies before benefit payments are required to begin under the second sentence of this Section 5.10, any benefits payable to (or for the benefit of) a designated Beneficiary will be paid beginning no later than the date the Participant would have attained age 70 1/2 over the life of the Beneficiary.

5.11. Maximum benefit. Benefits under the Plan shall not exceed the limitation of Code section 415(b), to the extent applicable.

5.12. Forfeitures. Forfeitures shall not be applied to increase the benefits any employee would otherwise receive under the Plan.

ARTICLE 6. ADMINISTRATION

6.1. Plan administration. UW is the administrator of this Plan and has designated the UW Benefits and WorkLife Office to be responsible for the day to day administration of the Plan.

6.2. Authority of UW. UW shall have final authority to determine all questions concerning eligibility and benefits under the Plan, to interpret all terms of the Plan, including any uncertain terms, and to decide any disputes arising under and all questions concerning

7 39339023_4 F–2.1/202-15 2/12/15 administration of the Plan. Any determination made by UW shall be given deference, if it is subject to judicial review, and shall be overturned only if it is arbitrary and capricious.

6.3. Requests for information. Any request for information concerning eligibility, participation, benefits, or other aspects of the operation of the Plan should be in writing and directed to the UW Benefits and WorkLife Office.

6.4. Payment of expenses. All reasonable costs and expenses incident to the administration of the Plan and the Trust, including but not limited to legal, accounting, and Trustee fees, shall be paid by the Trust unless UW elects to pay such expenses. Notwithstanding the foregoing, any and all expenses relating to settlor functions such as creation or termination of the Plan shall be paid by UW and may not be paid from the Trust.

ARTICLE 7. FUNDING

7.1. Trust agreement or declaration. The Trustee will receive and invest all contributions, if any, made under the Plan to the Trust and all income derived therefrom. UW may remove a Trustee and may appoint a successor or additional Trustees and may divide their duties and responsibilities as it sees fit.

7.2. Exclusive benefit of Participants. All assets of the Trust shall be held for the exclusive purpose of providing benefits to Participants and Beneficiaries under the Plan and defraying reasonable expenses of administering the Plan and as otherwise permitted by law and the Plan. In no event shall it be possible at any time prior to the satisfaction of all liabilities under Plan for any part of the assets of the Trust, whether principal or income, to be used for or diverted to purposes other than those stated herein.

7.3. Return of contributions. Nothing herein shall prohibit a return to UW, within one year after payment, of excess sums contributed to the Trust (adjusted for any income or loss in value, if any, allocable thereto) as a result of a good faith mistake of fact. In addition, in the event that the Commissioner of Internal Revenue (or his or her delegate) determines that the Plan is not qualified under the Code, any UW contributions made to the Plan shall be returned to UW within one year after the date the qualification is denied.

ARTICLE 8. AMENDMENT AND TERMINATION

8.1. Amendment and termination. The Board reserves the right at any time to amend or terminate the Plan, in whole or in part, to the extent permitted by law. If the Plan is terminated, UW will notify all Participants. All benefits accrued to the date of termination will be nonforfeitable to the extent funded or as otherwise required by law. No amendment shall be effective if it permits any part of the Trust assets (other than such part as is required to pay taxes and administration expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or their Beneficiaries, or permits any portion of the Trust assets to revert to or become property of UW, except as permitted by law.

8.2. Limitation. Notwithstanding the provisions of Section 8.1, the Board shall not make any amendment to the Plan that operates to recapture for UW any contributions previously made under this Plan except to the extent permitted by law.

8 39339023_4 F–2.1/202-15 2/12/15 ARTICLE 9. MISCELLANEOUS

9.1. Non-alienation of benefits. Except as provided in this Section, no benefit under the Plan may at any time be subject in any manner to alienation, encumbrance, the claims of creditors, or legal process. No participant will have power in any manner to transfer, assign, alienate, or in any way encumber his or her benefits under the Plan, or any part thereof, and any attempt to do so will be void and of no effect. This Plan will comply with any judgment, decree or order that establishes the rights of another person to all or a portion of a Participant’s benefit under this Plan to the extent that it is treated as a qualified domestic relations order under Code section 414(p).

9.2. Plan does not affect employment. Nothing in this Plan is a commitment or agreement by any person to continue his or her employment with UW, and nothing in this Plan is a commitment on the part of UW to continue the employment or the rate of compensation of any person for any period. All employees of UW will remain subject to nonrenewal, discharge or discipline to the same extent as if the Plan had never been put into effect.

9.3. Claims of other persons. The Plan does not give any Participant or any other person, firm, or corporation any legal or equitable right against UW, or its officers, employees, or Regents, except for the rights that are specifically provided for in this Plan or created in accordance with the terms and provisions of this Plan.

9.4. Governing law. Except as provided under federal law, the provisions of the Plan are governed by and construed in accordance with the laws of the State of Washington.

9 39339023_4 F–2.1/202-15 2/12/15 IN WITNESS WHEREOF this Plan has been signed for and on behalf of UW this __ day of ______, 201__.

UNIVERSITY OF WASHINGTON

By:______Name:

Title:

10 39339023_4 F–2.1/202-15 2/12/15 F–3 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

UW One Capital Plan

There will be an oral report for information only.

F–3/202-15 2/12/15 F–4 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Efficiencies Item – Office of Organizational Excellence

For information only.

BACKGROUND

Historically, the University of Washington has demonstrated commitment to organizational excellence. Beginning in 1990, Human Resource’s Professional & Organizational Development (POD) offered fee based organizational development (OD) services to Schools/Colleges and Academic or Administrative Support Units. Based on that work, many units now have embedded expertise working on organizational improvement.

With the economic downtown in 2008/2009, then Interim Provost Mary Lidstrom created the no fee Organizational Effective Initiative (OEI), a university resource established to help units mitigate reduced budgets and improve work processes, and support the Two Years to Two Decades Initiative. That unit, now called RAPID, is housed within the Office of Research and is primarily focused on improving research processes.

In September 2013, Provost Cauce and President Young established Organizational Excellence (OE) to provide leadership, support and coordination of this work throughout the University. Ruth Johnston, Ph.D, Associate Vice President and Chief of Staff for Planning & Management, leads these efforts. Ruth inaugurated the OD services in POD and was tasked to lead OEI under Lidstrom. For twenty years, she provided OD services to V’Ella Warren and her organizations. Just prior to OE, Ruth led the transformative work in the School of Nursing and UW Tacoma Interdisciplinary Arts & Sciences.

OE’s small team of three staff help UW schools, colleges and support units to improve their effectiveness by: 1) providing organizational development expertise, 2) building the skills and capacity of leaders and staff to improve their own work, 3) collaborating and partnering with others who do this work across the UW, and 4) gathering and sharing ideas, metrics and best practices.

Since its inception, OE has worked on 61 projects with 11 schools and colleges and 6 academic-support units or administrative areas. OE also offers forums and workshops and is offering a UW-wide improvement showcase to be held on March 10, 2015.

F–4/202-15 2/12/15 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Efficiencies Item – Office of Organizational Excellence (continued p. 2)

Examples of groups or individuals across the University working to improve services and reduce costs include:

• Professional & Organizational Development (POD - Human Resources) • RAPID [Research Administration Performance Improvement and Development, formerly Organizational Effectiveness Initiative] (Office of Research) • Operational Excellence/Shingo Lean (Finance & Facilities) • Organizational development practitioners in Schools/Colleges/Administrative Units, including UWIT, Libraries, UWMC, Housing & Food Services, and others • Faculty from Evans, Engineering, Foster and Education • Organizational Change Group (self-directed team, including those above and people interested in this field) • Seattle Children’s Hospital’s, Continuous Process Improvement department • Institute of Translational Health Sciences (ITHS) • External Consultants

Attachment UW Organizational Excellence

F–4/202-15 2/12/15 UW Organizational Excellence

Board of Regents Finance and Asset Management Committee 2/12/2015

Ruth A. Johnston, Ph.D Associate Vice President and Chief of Staff Planning & Management

206-685-9838 / [email protected] http://www.washington.edu/2y2d/oe/home/

F–4.1/202-15 ATTACHMENT 2/12/15 UW: Two Years to Two Decades

F–4.1/202-15 Page 2 of 8 2/12/15 2 UW Organizational Excellence (OE) Program

> OE helps the UW be more effective by… – Identifying and helping to eliminate obstacles to achieving UW strategic goals – Improving business practices and processes by facilitating and leading organizational improvements – Developing organizational and leadership capacity to improve organizations – Connecting schools/colleges/administrative units across the university to learn from each other and solve problems – Creating and sharing metrics, tools, and best practices

F–4.1/202-15 Page 3 of 8 2/12/15 What We Do Organizational Excellence

Organizational Development Building UW Organizational Metrics, Analysis, & (We provide free services for units and across processes.) Development Capacity Reporting (We provide resources.) (We demonstrate results.)

• Strategic Planning • Create and Share Tools and Best • Measure and Share Results • Process Improvement/Lean Practices • UW wide • Organizational Assessments • Connect Others (Sharing Ideas, • Unit level • Organizational Design/Structure Best Practices, Contacts) • Collect and Share Success Stories • Change Management • Facilitate Learning Forums • UW wide • Business Plan Development • Provide Related Training • Unit level • Metrics Development Examples: • Prepare and Deliver • Leadership Development and • Strategic planning Presentations Coaching • Meeting facilitation • Project Management • Lean facilitation • Retreat Facilitation • Change management • Conflict Resolution • Creating and using metrics

Mission Vision Values We make the UW work better. The UW is organizationally excellent. Service, Credibility, Respect, Innovation, Collaboration, Flexibility

F–4.1/202-15 Page 4 of 8 2/12/15 Sample Body of OE’s Work

School/College/Others Type of Work Goal

Colleges of Education/Built Environment Organizational Assessment/ Improve faculty support & increase research funding Process Improvement/Lean

Leaders Coaching/Action Planning Enhance leadership excellence Administrators Role Definition/Succession Identify and build new skills/prepare for the future Planning College of the Environment, Enrollment Strategic Planning Identify strategic goals and activities to achieve them Management and HUB

Office of Planning & Budgeting Process Improvement/Lean Improve State Operating Budget process/transparency HUB Improve Student Activities HUB Room Reservations

School of Nursing Organization Renewal Develop and achieve strategic plan

Office of Minority Affairs & Diversity Process Improvement Create a culture of compliance through process improvements in Purchasing, HR and more

UW Tacoma Interdisciplinary Arts & Decision Making Model and Develop a faculty governance model and improve Sciences Process Improvement/Lean curriculum scheduling and hiring

Planning & Management Organization Start-Up Create streamlined, integrated, customer-focused, Capital Planning & Development Process Improvement/Lean transparent, and highly-functioning organization

F–4.1/202-15 Page 5 of 8 2/12/15 5 OE Engagements with Schools/Colleges/ Support Units as of 12/31/2014

F–4.1/202-15 Page 6 of 8 2/12/15 Reporting Campus-Wide Accomplishments

F–4.1/202-15 Page 7 of 8 2/12/15 Sample Customer Testimonials

> I've been at UW since 1997 and this has been the most productive effort to address organization issues to improve our work. If there are any ways for me to learn more or get involved further let me know. I really enjoyed the work and found it to be a form of professional learning as well as organizational change.” Faculty Council member, College of Education > This (assessment report) is very useful, and I greatly appreciate your work in talking to the faculty and staff and helping me understand how to move forward. …Dean, College of Built Environments > …”The task at times seemed daunting, confusing and inconsistent, but because of your efforts, we have accomplished something that has never been done in OMAD..(with) the expertise of our fabulous facilitators” … OMAD AVP (Office of Minority Affairs and Diversity)

F–4.1/202-15 Page 8 of 8 2/12/15

F–5 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Portage Bay Insurance Annual Report

BACKGROUND

Portage Bay Insurance (PBI) is the University of Washington’s not-for-profit single parent captive insurance company. The Board of Regents authorized its creation on July 1, 2002 in order to allow UW to approach reinsurance markets, thereby increasing available markets for catastrophic coverage. Other purposes included retention of investment earnings, regulation by Hawaii Insurance Commissioner, and the ability to craft policy language to meet UW’s needs.

On June 30, 2014, PBI completed its twelfth year of operation. It is providing the coverages and services envisioned in its 2002 business plan as well as additional new coverage and services.

Governance and Management

The PBI Board of Directors includes one outside director and six University employees having significant responsibilities for risk management, liability management and asset management (see attachment 1). PBI contracts with the University for claim and risk management services from the Office of Risk Management and for investment services from the Treasury Office. It also contracts with Strategic Risk Solutions for captive management and regulatory compliance services, Milliman for actuarial analysis, KPMG for audit services, Char, Hamilton, Yoshida & Shimomoto for legal counsel, and Saslow, Lufkin & Buggy for tax filing preparation.

FY14 Asset/Liability Changes

PBI provides professional, general, automobile, employment practices, and information security and privacy liability insurance coverage for the University, its employees, and students. Annual premiums are established through an independent actuarial study and are paid by the central administration and self- sustaining units. FY14 results included total assets of $81 million (down 12% from FY13) and total liabilities of $46 million (down 22% from FY13). 111 claims were closed in the fiscal year, 58 with no payment to the claimant. Funds are invested in the University’s Invested Funds Portfolio which had a total return for the year of 5%. Milliman has opined that PBI is adequately funded to meet its liabilities.

F–5/202-15 2/12/15 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Portage Bay Insurance Annual Report (continued, p. 2)

Reinsurance

PBI reinsures against catastrophic losses with European, Bermudian, and American reinsurers having A.M. Best ratings of A- or better. For medical malpractice and general liability, reinsurance coverage with limits of $100 million is purchased for $2.5 million in annual premium. Information security and privacy coverage is reinsured with limits of $10 million for $250,000 in annual premium.

Regulatory Compliance and Audit

KPMG completed PBI’s FY14 annual audit with no findings or issues. In 2013, a full regulatory review found PBI in compliance with all requirements of Hawaii, its state of domicile. The IRS has ruled that PBI qualifies as a 501c3 tax-exempt corporation; it regularly files the required 990 forms.

Program Accomplishments

In a 2014 A.M. Best analysis of 200 rated captive insurance companies, it was found that captives outperform commercial insurers in every key financial measure. PBI compared favorably to that group of captives in three ways: its underwriting approach provides more stable and predictable costs, enhanced coverage terms and evidence-based mitigation programs; its operating costs are lower and it avoids federal tax liabilities through its legal structure; and its loanback of assets to its parent, UW, minimizes investment management costs. Operating ratios are presented in attachment 2.

Due to its conservative 75% confidence level, PBI was able to absorb an unexpected $15 million medical malpractice verdict in July, 2013 (of which $5M was reinsured) without turning to the University for additional funding.

In 2012, in anticipation of increased federal enforcement of Title IX, PBI created a Compliance Support Program and hired the UW’s first dedicated Title IX/ADA Coordinator. It has since assumed responsibilities for UW-wide leadership in the safety of minors area as well. It provided the project manager for the President’s Task Force on Sexual Assault Prevention and Response and is a key player in the implementation of the Task Force’s eighteen recommendations.

Also in 2012, PBI issued its first Information Security and Privacy policy which was fully reinsured with London carriers. The policy covers the costs of forensics consultants, public relations and crisis management firms, statutorily required

F–5/202-15 2/12/15 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Portage Bay Insurance Annual Report (continued, p. 3)

communications, credit monitoring and other claimant assistance, litigation defense, regulatory fines and penalties, arbitration awards, claim settlements and verdicts, the salaries and benefits of temporary UW employees hired to manage privacy and security injuries, and other costs reasonably incurred to mitigate damage. Because UW wrote the policy language, there are far fewer restrictions than normally found in commercial products. In 2011, PBI extended liability coverage to Northwest Hospital and Medical Center, saving the UW Medicine system approximately $1.5M annually.

A PBI-funded “Patient Safety Innovations Program” (PSIP) was introduced in 2007. Structured as an internal research grant program, it has the dual objectives of strengthening UW’s culture around patient safety and, ultimately, controlling liability costs. Thus far, fourteen grants have been awarded at a cost of $840,000. Some PSIP-funded research products have been implemented by the UW medical centers, including: an on-line system to highlight critical radiology results; a uniform morbidity and mortality process for evaluating poor outcomes of patient care; team communications training in code blue response; and improved inter- operative glycemic control.

FY15 Goals

A UW-wide Compliance Education initiative is being rolled out this winter, providing free education and training to UW employees in a number of compliance areas with UW-wide applicability.

PBI will also be creating a forum for the risk managers of the facilities involved in UW Medicine’s Accountable Care Network to meet regularly to discuss emerging liability and risk financing issues, and to consider mutual loss prevention opportunities.

Attachments 1. Portage Bay Insurance 2014-2015 Board of Directors 2. Portage Bay Insurance Operating Ratios

F–5/202-15 2/12/15 Portage Bay Insurance 2014-2015 Board of Directors

Elizabeth Cherry Executive Director, Risk Management

Tim Dellit Associate Dean for Clinical Affairs, School of Medicine

Mark Green Associate Dean for Business, School of Medicine

Rolf Johnson Chief of Staff, President’s Office

Chris Malins Associate Vice President, Treasury

Marcia Rhodes Director, School of Medicine and Health Sciences Risk Management

Herb Van Der Veer Retired Insurance Brokerage Company Executive

F–5.1/202-15 ATTACHMENT 1 Page 1 of 1 2/12/15 Portage Bay Insurance Operating Ratios

Loss Ratio: Paid and reserved claims divided by premium

Discussion: The volatility in PBI’s loss ratio is not unusual for small captives, especially ones covering medical malpractice. The volatility argues for conservative funding in order to absorb large losses without going into deficit.

Expense Ratio: Operating Costs divided by premium

Discussion: The expense ratio compares total costs of operating the company to premiums charged. Since PBI contracts with UW for claims management, risk management, and investments management services, PBI’s costs are low by industry standards.

F–5.2/202-15 ATTACHMENT 2 Page 1 of 1 2/12/15 F–6 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

University Advancement Return on Investment Report for FY 14

This item is for information only.

Attachment University Advancement Return on Investment Report FY 14

F–6/202-15 2/12/15

University Advancement Return on Investment Report FY 14

The Advancement Return on Investment Report includes three charts. The first, titled “University Advancement” shows Advancement expenditures and revenues by school/college/program/campus with a couple of ratios comparing expenditures and revenues over one year and multi-year periods.

The third page shows the proportion of these expenditures devoted to constituency units and central advancement.

The fourth page shows the overall Advancement budget sorted by revenue source, with some detail describing the nature of those sources.

The aggregation and presentation of these reports is emblematic of UW Advancement’s transparent communication style and substance. Very few of our peer institutions even collect this information, and none of them share it in such a public forum.

F–6.1/202-15 Page 1 of 5 2/12/15 ATTACHMENT University Advancement FY13-14 Annual Report

Total Gifts, Grants, & Total Gifts 1-Year 5-Year Avg. 1-Year 5-Year Avg. Endowment Total Gifts Endowment Constituency Unit Costs Gifts Grants & Grants ROI/Dollar ROI/Dollar Cost/Dollar Cost/Dollar Distribution & Grants Distribution UW Medicine 7,081,331 39,433,723 122,256,448 161,690,171 22.83 23.47 0.04 0.04 21,707,112 161,690,171 183,397,283 Academic Student Affairs (ASA) Graduate School 394,747 1,375,001 830,240 2,205,241 5.59 6.28 0.18 0.17 1,742,211 2,205,241 3,947,452 Minority Affairs 381,874 473,222 85,000 558,222 1.46 2.54 0.68 0.45 121,933 558,222 680,155 Student Life 457,952 4,332,778 - 4,332,778 9.46 27.89 0.11 0.06 4,572,862 4,332,778 8,905,640 Undergraduate Academic 252,309 598,044 10,019 608,063 2.41 5.67 0.41 0.23 1,282,828 608,063 1,890,891 Arts and Sciences 5,211,006 26,270,676 8,877,388 35,148,064 6.74 7.47 0.15 0.13 11,190,056 35,148,064 46,338,120 Built Environments 324,838 2,542,223 119,930 2,662,153 8.20 8.73 0.12 0.12 1,071,943 2,662,153 3,734,096 Foster School of Business 1,890,513 16,312,043 45,000 16,357,043 8.65 9.37 0.12 0.11 4,999,973 16,357,043 21,357,016 Dentistry 415,223 2,844,032 492,596 3,336,628 8.04 8.09 0.12 0.14 922,202 3,336,628 4,258,830 Education 784,507 1,947,403 6,296,162 8,243,565 10.51 9.20 0.10 0.11 714,091 8,243,565 8,957,656 Engineering 3,230,691 13,476,464 29,661,931 43,138,395 13.35 10.35 0.07 0.10 6,843,175 43,138,395 49,981,570 Environment 1,598,019 5,004,787 6,823,345 11,828,132 7.40 8.52 0.14 0.12 2,881,939 11,828,132 14,710,071 Evans School of Public Affairs 253,995 656,311 970,051 1,626,362 6.40 4.14 0.16 0.29 688,156 1,626,362 2,314,517 Information School 477,495 1,024,027 552,607 1,576,634 3.30 3.90 0.30 0.31 208,931 1,576,634 1,785,565 Intercollegiate Athletics 1,933,696 37,409,494 - 37,409,494 19.35 16.10 0.05 0.06 2,650,203 37,409,494 40,059,696 Law 942,625 59,431,914 84,013 59,515,926 63.14 14.87 0.02 0.32 2,977,249 59,515,926 62,493,175 Libraries 414,727 2,640,044 433,500 3,073,544 7.41 7.35 0.13 0.17 1,521,195 3,073,544 4,594,739 Nursing 512,903 5,919,358 1,532,369 7,451,727 14.53 8.12 0.07 0.14 1,241,187 7,451,727 8,692,915 Pharmacy 407,484 1,906,411 3,914,816 5,821,227 14.29 15.25 0.07 0.07 556,189 5,821,227 6,377,415 Public Health 348,721 1,759,430 34,696,166 36,455,596 104.54 92.05 0.01 0.01 510,926 36,455,596 36,966,522 Social Work 885,919 2,469,483 2,236,141 4,705,624 5.31 5.52 0.19 0.18 260,887 4,705,624 4,966,511 UW Bothell 693,746 435,323 3,156,190 3,591,513 5.18 8.03 0.19 0.17 124,088 3,591,513 3,715,601 UW Tacoma 925,445 1,854,794 386,386 2,241,180 2.42 5.02 0.41 0.30 1,355,220 2,241,180 3,596,401 Other Constituencies 1 3,589,429 25,651,891 3,223,144 28,875,035 8.04 5.05 0.12 0.22 4,357,536 28,875,035 33,232,571 AVP Constituency Programs 579,387 - - - na na na na - - -

Total Constituency Units 2 33,988,581 255,768,878 226,683,441 482,452,318 14.19 12.09 0.07 0.08 74,502,090 482,452,318 556,954,409 University-wide Services 3 22,477,060 - - - na na na na - - - DIP/F2 and Non-UW 4 na na na na na na na na 19,265,167 - 19,265,167 TOTAL 5, 6 56,465,641 255,768,878 226,683,441 482,452,318 8.54 7.87 0.12 0.13 93,767,257 482,452,318 576,219,576

F–6.1/202-15 Page 2 of 5 2/12/15 University Advancement FY13-14 Annual Report

Notes

1 Other Constituencies includes: UW Alumni Association, President's Funds, Broadcast Services (KUOW and KEXP), and other University support

2 Total Constituency Units Costs category detail: Unit funded 16 ,519,995 49% Centrally funded 17,468,586 51% Total Constituency Units' Costs: 33,988,581

3 University-wide Services category includes: Advancement Services, Campaign, Corporate & Foundation Relations, Finance & Administration (includes rent), Individual Giving Programs, Regional Advancement, UA Vice President's Office, University Marketing & Communications (excludes Sponsorships and Trademarks & Licensing), UW Foundation Support, and Volunteer Engagement 4 DIP/F2 and Non-UW: DIP/F2 contains a portion of UW operating funds that are invested in the CEF and distributed to the Office of Planning and Budgeting; Non-UW are endowments managed by UW for non-UW entities (e.g. Evergreen State College Foundation and Seattle Cancer Care Alliance)

5 Total Costs category detail: Unit funded 16,519,995 29% Centrally funded 39,945,646 71% Total Costs: 56,465,641

6 The total 5-year averages are calculated on FY09-10 thru FY13-14

F–6.1/202-15 Page 3 of 5 2/12/15 University Advancement University-wide Services & Total Constituency Units Cost Analysis by Percentage FY13-14

TOTAL $56,465,641

Total Constituency Units $33,988,581

University-wide Services $22,477,060 40% (centrally funded) Total Constituency Units Centrally Funded Unit Funded $33,988,581 $17,468,586 $16,519,995 60% 51% 49%

F–6.1/202-15 Page 4 of 5 2/12/15 University Advancement Central Revenue and Expenditures

FY14-15 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 Projections Revenue Sources 80 Basis Points Endowment Fee 14,256,637 15,687,770 16,912,294 17,362,229 18,603,508 20,857,729 Parking 437,586 578,040 535,773 472,267 819,112 889,112 Endowment Suspense 512,017 1,101,035 321,079 270,828 299,715 311,703 Gift Interest 7,478,391 7,356,973 8,295,092 8,922,051 9,330,033 9,465,481 Institutional Support (Permanent) 3,729,410 4,386,483 4,858,580 7,089,988 9,956,919 14,068,863 Institutional Support (Temporary) - - - - - 4,959,740 Miscellaneous Revenue - 200,000 - 285,000 486,377 971,375 Total Revenue 26,414,041 29,310,301 30,922,818 34,402,363 39,495,664 51,524,004

Total Expenditures (25,353,244) (27,593,992) (29,830,659) (33,691,476) (39,945,646) (51,340,703)

Notes Significant Change Effective FY13-14 a new unit, University Marketing & Communications (UM&C), was created within University Advancement resulting in an increase in revenue and expenditures Effective FY14-15 KUOW, Media Relations, News & Information, and Public Records integrated into UM&C UM&C includes KUOW, Media Relations, News & Information, Public Records, Sponsorships, Trademarks & Licensing, and University Marketing Revenues and expenditures do not include Sponsorships and Trademarks & Licensing; They are self-sustaining enterprises within UM&C Revenue Sources Calculations for basis points, parking, endowment suspense and gift interest based on projections from UW Treasury CEF (80 Basis Points) revenue distribution rate of 0.8% of CEF average balance (20-quarter rolling average) Parking revenue distribution rate of 2% for two quarters (4% annual) of newly invested endowments Endowment Suspense revenue distribution rate of 2% of year-end suspense balance Gift Interest revenue distribution rate of 3% of year-end current use balance Institutional Support (Temporary) is funding from the Office of the Provost for the Campaign and UM&C Miscellaneous revenue comprises event revenue and licensing revenue Other Constituency Unit Advancement costs are not reflected in the above figures (FY13-14 totaled $16,519,995)

F–6.1/202-15 Page 5 of 5 2/12/15 F–7 VII. STANDING COMMITTEES

B. Finance and Asset Management Committee

Intercollegiate Athletics Annual Financial Report for FY14

This item is for information only.

Attachment ICA Financial Review Feb. 12, 2015

F–7/202-15 2/12/15 ICA FINANCIAL REVIEW FEB. 12, 2015

1 F–7.1/202-15 ATTACHMENT 2/12/15 z 2014 FALL QUARTER ICA PERFORMANCE

Hi stORIC academic results: 70% of Student Athletes over 3.0 GPA • 17 teams earned over 3.0 GPA, 5 teams over 3.4 GPA • Football over 3.0 for first time in history • Graduation Success Rate at 81%, above national average 30% All Fall teams ranked in top 25 of national standings • Volleyball and Men’s Soccer ranked in top 5 during season • Men’s Crew earned 4th national championship in a row • Current Director’s Cup ranking at #7, best Fall performance ever 70% Pac-12 Conference performance • Continuing to excel both scholastically and on-field performance 3.0 OR ABOVE • Pac-12 TV related distribution and exposure accelerating BELOW 3.0 • Leading the way in student athlete welfare issues and NCAA reform

Oanutst ding performance both on and off the field

2 F–7.1/202-15 2/12/15 z WHERE WE ARE NOW

College of Arts and Sciences 160 PreMajors 146 School of Business 23 College of the Environment 16 School of Engineering 7 School of Education 6 Other 5 Individual Studies 1

3 F–7.1/202-15 2/12/15 z NCAA FINANCIAL RANKINGS

2012-’13 NCAA FINANCIAL RANKINGS

FAB ST DIUM ‘000s CONFERENCE REVENUE NAT’L RANK EXPENSE NAT’L RANK CAPACITY (k) TEXAS BIG 12 165.7 1 146.8 1 100.1 WISCONSIN BIG 10 149.1 2 146.7 2 80.3 ALABAMA SEC 143.8 3 116.6 4 101.8 MICHIGAN BIG 10 143.5 4 131.0 3 109.9 OHIO ST. BIG 10 139.6 5 116.6 5 102.3 FLORIDA SEC 130.0 6 107.0 7 88.5 OKLAHOMA BIG 12 123.8 7 102.4 11 82.1 LSU SEC 117.5 8 105.3 9 92.5 OREGON PAC-12 115.2 9 95.0 15 56.0 TENNESSEE SEC 111.6 10 110.3 6 102.5 IOWA BIG 10 107.2 11 107.0 8 70.6 AUBURN SEC 103.7 12 103.1 10 87.5 ARKANSAS SEC 99.8 13 92.1 19 72.0 MINNESOTA BIG 10 98.3 14 96.4 14 50.8 GEORGIA SEC 98.1 15 96.9 12 92.7 Michigan St. BIG 10 97.9 16 93.7 16 75.0 Louisville ACC 96.2 17 92.4 18 55.0 Kentucky SEC 95.7 18 93.4 17 67.6 California PAC-12 94.5 19 90.1 20 62.7 Texas A&M SEC 94.0 20 85.1 21 82.5 Oklahoma St. BIG 12 93.7 21 96.6 13 60.2 Kansas BIG 12 93.1 22 79.2 27 50.1 Florida St. ACC 91.4 23 84.8 22 82.3 Nebraska BIG 10 86.9 24 81.7 26 92.0 WASHINGTON PAC-12 85.1 27 76.2 32 70.1

SEC & Big 10 dominate revenue rankings

4 F–7.1/202-15 2/12/15 z PAC-12 PUBLIC INSTITUTION FINANCIAL RANKINGS & SUBSIDIES

2012-’13 PAC-12 FINANCIAL RANKINGS & SUBSIDIES

CAMPUS ‘000s REVENUE NAT’L RANK EXPENSE NAT’L RANK SUBSIDIES OREGON 115 9 95.0 16 2.3 CALIFORNIA 94.5 20 90.1 21 7.6 WASHINGTON 85.1 27 76.2 32 3.3 UCLA 83.9 29 83.9 26 2.6 ARIZONA 68.5 42 68.3 38 7.3 ARIZONA ST. 65.7 44 65.6 43 10.1 OREGON ST. 65.5 45 64.2 44 12.3 COLORADO 58.3 53 66.3 41 7.1 WASHINGTON ST. 47.2 54 52.1 54 6.5 UTAH 46.9 55 49.5 55 10.2 AVERAGE 73.1 71.1 6.9

New agreement will decrease UW subsidy to $1.9 Mil for ‘14-15, lowest in Pac-12

5 F–7.1/202-15 2/12/15 z ICA INVESTMENTS

Calapit investments in facilities to compete and drive revenues • Husky Stadium ($282 Mil, ILP financed) • Husky Ballpark ($17 Mil, ILP financed) • Student Athlete Athletic Services (SAAS) renovation ($2 Mil) – improve learning facilities • Basketball Operations Building in planning phase

Increase in staffing support and capability • Continue hiring of top level talent in all functions • Headcount now on par with other Pac-12 university peers • SAAS investment continues to yield unprecedented success

Technological investments to keep pace with evolving landscape • New digital boards to enhance fan experience and marketing opportunities • Media related investments to make facilities TV ready • Investment in digital and creative teams to grow in-house capability

Strategic investments in ICA as an enabler in accelerating success

6 F–7.1/202-15 2/12/15 z CHALLENGES

Balancing increase in operating costs w/prudent cost savings • Continued increase of departmental staff • Operations and maintenance costs of new facilities

Growing revenue uncertainty • Declining football gate revenues across the country • Basketball gate revenues significantly impacted by TV evolution (dates/times)

Continuing NCAA reform will require additional investment • Student Athlete welfare concerns will continue • Meal allowance, full cost of attendance (COA), stipend, medical coverage, post eligibility, insurance... total additional cost estimated at $3.5 Mil in ‘15-16 • Power 5 conference schools will all likely follow suit

7 F–7.1/202-15 2/12/15 z OPERATING REVENUES

100,276 100,000 $10,321 $11,159 $5,800 OTHER $5,142 $6,370 $6,986 $6,179 80,000 8,139 OTHER SPONS. & DONATED SUPPLIES $4,974 5,465 $3,580 MULTIMEDIA RIGHTS 5,484 $29,078 6,643 $24,935 6,177 NCAA & PAC-12 DIST. 60,000 $54,715 5,302 $22,453 5,265 16,215 1,373 5,373 CONTRIBUTIONS 2,996 5,692 4,924 GATE REVENUE 9,829 12,584 40,000 10,278 $24,031 $23,556 23,501 $26,599 15,732 12,488 15,840

20,000 $28,830 $29,316 22,656 22,856 22,034 23,789 $20,481

-­‐ '08-­‐09 '09-­‐10 '10-­‐11 '11-­‐12 '12-­‐13 '13-­‐14 '14-­‐15

8 F–7.1/202-15 2/12/15 z OPERATING EXPENSES (NOT INCLUDING DEBT SERVICE)

90,000 $86,097

80,000 $18,985 $16,768 Other: Supplies, Training Table, 70,000 $17,317 Recruiting, Medical, etc $6,197 $61,375 18,420 $6,909 O/H, Utilities, Repair, & Maintenance 60,000 15,972 $5,984 $4,534 $7,156 16,221 Day of Game 13,177 3,909 $4,977 $6,973 50,000 4,788 4,602 $7,300 Travel 4,418 $7,635 4,497 4,807 6,551 Scholarships & Fin’l Aid 4,409 $12,315 40,000 4,486 5,690 $11,806 5,152 Salaries & Benefits 4,352 10,066 $10,894 8,806 30,000 8,310 8,261

20,000 $36,615 $33,941 30,286 $30,853 25,909 25,340 27,838 10,000

-­‐ '08-­‐09 '09-­‐10 '10-­‐11 '11-­‐12 '12-­‐13 '13-­‐14 '14-­‐15

9 F–7.1/202-15 2/12/15 z FINANCIAL BREAKDOWN

2013-’14 OPERATING REVENUE 2013-’14 OPERATING EXPENSE

REVENUE NOTES: • “OTHER ICA REVENUES” INCLUDE MULTIMEDIA RIGHTS, OTHER SPONSORSHIPS, AND MISCELANEOUS REVENUES • Gate Revenue + Contributions + NCAA/Pac-12 Distribution= 78% of all revenue • 85% of revenues driven by Football

EXPENSE NOTES: • “OTHER EXPENSES” INCLUDE TRAVEL, DAY- OF-GAME, OVERHEAD/MAINTENANCE AND MISCELANEOUS EXPENSES • SALARIES & BENEFITS + FINANCIAL AID = 58% OF ALL EXPENSE GATE REVENUE 29% • SALARIES & BENEFITS + FINANCIAL AID + SALARIES & BENEFITS 43% TRAVEL + DAY-OF-GAME = 73% OF ALL CONTRIBUTIONS 24% EXPENSE. FINANCIAL AID 15% NCAA & CONFERENCE DIST. 25% OTHER 42% OTHER ICA REVENUES 22% TOTAL $86.0 M TOTAL $100.3 M

10 F–7.1/202-15 2/12/15 z 2013-’14 ICA FINANCIAL REVIEW

$ Mil ‘11-12 ‘12-13 ‘13-14 13-14 ‘14-15 CAGR ACTUAL ACTUAL ACTUAL vs py% projected % GATE REVENUE 23.8 20.5 28.8 40.5% 26.8 4% CONTRIBUTIONS 23.5 26.6 24.0 -10% 24.0 1% NCAA/PAC-12 DIST. 16.2 22.5 24.9 11% 28.6 21% OTHER 19.1 15.5 22.5 45% 22.7 6% TOTAL OPERATING REVENUE 82.6 85.1 100.3 18% 102.1 7% SALARIES & BENEFITS 30.3 30.9 33.9 10% 36.6 7% FINANCIAL AID 10.1 10.9 11.8 8% 12.3 7% TEAM TRAVEL 6.6 7.6 7.3 -4% 5.2 -7% DAY OF GAME 4.6 5.0 7.2 44% 6.0 9% OTHER 22.2 21.8 25.9 19% 25.9 5% TOTAL OPERATING EXPENSE 73.8 76.2 86.1 13% 86.0 5%

net operating income 8.8 8.9 14.2 60% 16.0 DEBT SERVICE LEVELS 1.1 1.1 14.6 17.9 DEBT SERVICE COVERAGE 7.8 7.8 1.0 0.9

11 F–7.1/202-15 2/12/15 z 2013-’14 ICA FINANCIAL REVIEW

OPERATING REVENUE - Increase of 18% vs. PY • Gate increase of $8.3 Mil vs. ‘12-’13 driven mainly by move from CenturyLink Field to Husky Stadium • New stadium attendance was 66k actual vs. 62.3k in Regents model • Contributions down, though $6 Mil was raised for stadium contribution fund (capital gifts) • Pac-12 distribution up, mainly from networks surplus and AT&T U-Verse deal • IMG multimedia rights fees increased to $6.1 Mil (new contract)

OPERATING EXPENSE - Increase of 13% vs. PY • Salary & Benefits increase driven by complete turnover in Football & other staff salary increases (4% prof/2% classified) • Financial Aid increase in line with tuition increases (in-state/out-of-state), and fee adjustments • Day-of-game increase driven largely by additional expenses related to new stadium opening & operations. • Higher than planned Football/new stadium related costs (graphics, computers, IT, uniforms/supplies, etc.) drove increases NET OPERATING INCOME - Increase of 5.3% vs. PY

12 F–7.1/202-15 2/12/15 z DEBT SERVICE vs RESERVE BALANCE

(’000)

$20,000 $18,932 $17,889 $17,841 $18,000 $17,476 $17,484 $16,039 $16,000 $14,576 $14,000 $13,456 $12,132 $12,000

$10,000 $7,804 $8,000

$6,000

$4,000

$2,000 $1,134 $1,134

‘11-12 ’12-13 ‘13-’14 ‘14-’15 ‘15-’16 ‘16-’17

DEBT SERVICE UNRESTRICTED RESERVE BALANCE

While debt service increases, ICA will continue to grow reserves to meet ILP covenants

13 F–7.1/202-15 2/12/15 z FINANCIAL PROJECTIONS (INCLUDING BASKETBALL OPS)

$ Mil ‘13-14 ‘14-15 ‘15-16 ‘16-17 ‘17-18 ‘18-19 ‘19-20 ACTUAL PROJECTED GATE REVENUE 28.8 26.8 29.9 31.1 32.2 33.1 34.5 CONTRIBUTIONS 24.0 24.0 24.4 24.1 30.5 29.9 25.8 NCAA/PAC-12 DIST. 24.9 28.6 30.7 31.6 33.9 35.8 37.1 OTHER 22.5 22.7 25.5 26.2 26.8 27.3 28.2 TOTAL OPERATING REVENUE 100.3 102.1 110.5 113.1 123.5 126.1 125.6 SALARIES & BENEFITS 33.9 36.6 38.1 40.7 41.8 42.8 43.9 FINANCIAL AID 11.8 12.3 13.7 14.3 15.0 15.7 16.4 TEAM TRAVEL 7.3 5.2 5.4 5.7 5.9 6.1 6.4 DAY OF GAME 7.2 6.0 6.1 6.3 6.4 6.6 6.8 OTHER 25.9 25.6 27.8 28.8 29.4 30.1 31.4 TOTAL OPERATING EXPENSE 86.1 86.0 91.2 95.8 98.4 101.3 104.7

NET operating income 14.2 16.0 19.3 17.2 25.0 24.8 20.8 dEBT SERVICE 14.6 17.5 17.9 17.8 20.4 20.4 20.4 NET OPERATING INCOME (w/ debt) (0.4) -1.5 1.4 -0.6 4.6 4.5 0.5 Debt service coverage 1.0 0.9 1.1 1.0 1.2 1.2 1.0

• $50 MILLION BASKETBALL OPS ILP DEBT SERVICE TO START IN ‘17-18 ($3.1 MIL/YEAR) • debt service coverage target at 1.1X NET OPERATING INCOME, PER TREASURY AGREEMENT

14 F–7.1/202-15 2/12/15 z FINANCIAL PROJECTIONS (WITHOUT BASKETBALL OPS)

$ Mil ‘13-14 ‘14-15 ‘15-16 ‘16-17 ‘17-18 ‘18-19 ‘19-20 ACTUAL PROJECTED GATE REVENUE 28.8 26.8 29.9 31.1 32.2 33.1 34.5 CONTRIBUTIONS 24.0 24.0 24.4 24.1 30.5 29.9 25.8 NCAA/PAC-12 DIST. 24.9 28.6 30.7 31.6 33.9 35.8 37.1 OTHER 22.5 22.7 25.5 26.2 26.8 27.3 28.2 TOTAL OPERATING REVENUE 100.3 102.1 110.5 113.1 123.5 126.1 125.6 SALARIES & BENEFITS 33.9 36.6 38.1 40.7 41.8 42.8 43.9 FINANCIAL AID 11.8 12.3 13.7 14.3 15.0 15.7 16.4 TEAM TRAVEL 7.3 5.2 5.4 5.7 5.9 6.1 6.4 DAY OF GAME 7.2 6.0 6.1 6.3 6.4 6.6 6.8 OTHER 25.9 25.9 27.8 28.8 29.4 30.1 31.4 TOTAL OPERATING EXPENSE 86.1 86.0 91.2 95.8 98.4 101.3 104.7 net operating income 14.2 16.0 19.3 17.2 25.0 24.8 20.8 dEBT SERVICE 14.6 17.5 17.9 17.8 17.3 17.2 17.2 NET OPERATING INCOME (w/ debt) (0.4) -1.5 1.4 -0.6 7.7 7.6 3.6 Debt service coverage 1.0 0.9 1.1 1.0 1.4 1.4 1.2

• DEBT SERVICE COVERAGE IMPROVES BY 0.2x WITHOUT BASKETBALL OPERATIONS BUILDING INCLUDED • DEBT SERVICE COVERAGE TARGET AT 1.1x NET OPERATING INCOME, PER TREASURY AGREEMENT

15 F–7.1/202-15 2/12/15 z SUMMARY

OVERALL PERFORMANCE • Healthy financials over past 5 years, representing fiscal discipline in a growing competitive landscape • Completed largest capital project in ICA history – Husky Stadium renovation • Continuing NCAA regulatory changes driving higher Student Athlete financial support

OPERATING PERFORMANCE • Topped $100 Mil in revenue in ‘13-14, with increases coming from Pac-12 distribution and new stadium revenue • ICA investments continuing to drive strong results academically, athletically, and financially • Contributions represents over 30% of revenue, donor support critical to overall mission of ICA

DEBT SERVICE • Internal Lending Program used to finance large facility upgrades (Husky Stadium & Ballpark) • ILP requires net operating income to cover yearly debt service by 1.1x • Managing operations with goal of meeting all internal debt obligations

16 F–7.1/202-15 2/12/15 B–1 BOARD OF REGENTS MEETING

Legislative and Budget Update

This will be an oral report for information only.

B–1/202-15 2/12/15

FEDERAL RELATIONS

2014 REPORT

THE UNIVERSITY OF WASHINGTON OFFICE OF FEDERAL RELATIONS HELPED THE UNIVERSITY SECURE MILLIONS OF DOLLARS IN FEDERAL FUNDING FOR VARIOUS PROGRAMS AND AREAS OF RESEARCH DURING THE PAST YEAR. OUR WASHINGTON, D.C. STAFF ALSO HOSTED HIGH-LEVEL FEDERAL OFFICIALS TO CAMPUS AND ENGAGED WITH FEDERAL LAWMAKERS AND STAFF TO SECURE SUPPORT FOR UW PRIORITIES THROUGH THE LEGISLATIVE, REGULATORY, AND GRANT MAKING PROCESSES. HERE IS A SUMMARY OF THE OFFICE'S MAJOR ACCOMPLISHEMENTS DURING 2014.

NAVY AWARD FOR UW APPLIED FUNDS TO RETROFIT R/V TOMMY PHYSICS LABORATORY THOMPSON

ELEVATING THE PROFILE OF UW MARINE RENEWABLE $15 MILLION FOR THE R/V TOMMY THOMPSON ENERGY RESEARCH Federal Relations successfully secured $15 million For several years, the Office of Federal Relations has (resulting in an actual $12.77 million) in funding for the pursued strategies to elevate the profile of UW marine Thomas G. Thompson research vessel in the FY14 Defense renewable energy projects (i.e., tidal, wave, and off- bill. The Thompson is a 274-foot, state-of-the-art research shore wind). With contractual assistance from Strategic vessel that is owned by the U.S. Navy but operated by the Marketing Innovations, the Office identified an UW as part of the University National Oceanographic opportunity for the University to receive FY14 funding Laboratory Systems fleet. The new funding will reimburse from U.S. Office of Naval Research. Federal Relations the University for monies already expended for analysis, conducted a significant amount of background research planning, and design of an overhaul of the R/V Thompson. and analysis to formulate a strategy to secure funds Federal Relations secured an additional $20 million for the from a specific program budget and prepare for R/V Thompson in in the FY15 Defense bill, as well as meetings with staff representing U.S. Sen. Patty Murray support in the FY15 National Defense Authorization Act (D-WA), U.S. Rep. Adam Smith (D-WA), and the U.S. Navy (authorization bill). Staff worked with U.S. Sen. Patty Energy program. As a result of this work, the UW Murray's office, House Armed Services Committee staff, Applied Physics Laboratory (APL) received an $8 million House and Senate Appropriations Committee staff, and contract for marine renewable energy work. Reps. Adam Smith and Jaime Herrera Beutler's (R-WA) Federal Relations also successfully lobbied for an staff to secure this funding. additional $20 million in the Office of Naval Research budget for FY15, specifically dedicated to research on alternative energy. This is the same account that funded the $8 million contract to APL and creates an opportunity for additional funding in 2015.

facebook.com/UWfederalrelations University of Washington Box 351242 Seattle, WA 98195 www.washington.edu/federalrelations 202.624.1420

OTHER FEDERAL ACCOMPLISHMENTS IN 2014

• Staff successfully lobbied for a $4 million award from the U.S. Department of Energy Water Power Program for the UW Northwest Marine Renewable Energy Center. Staff also helped to increase the amount of funds available for competitive research and development through the U.S. Department of Energy's Water Power program, and to provide an advantage to marine renewable energy projects over traditional hydropower projects. • Staff worked with a small coalition of west coast universities to secure funding in FY15 in the U.S. Department of the Interior Earthquake Hazards Program, as well as additional funding to support the development of an earthquake early warning prototype system on the west coast. • Federal Relations conducted outreach with Governor Inslee' staff regarding Washington State's role in providing support for a new Navy Arctic Security Center in the Puget Sound region, which could provide new research opportunities and funding for the UW through the Applied Physics Laboratory in collaboration with the College of the Environment. • For the past four years, the President's Budget Proposal has eliminated funding for Education and Research Centers (ERC) and the Agricultural, Forestry and Fishing (AFF) Program, both funded through the National Institutes of Occupational Safety and Health. The UW operates one each of these programs on campus. Working with U.S. Sen. Patty Murray's office, staff successfully advocated to restore this funding for each of the past four years, including for FY15. • Along with a small coalition of major academic medical centers (e.g., Johns Hopkins, Emory, Cleveland Clinic), Federal Relations helped to secure supportive language and $15 million in the Defense Health Program to create competitive grants to academic medical institutions that are advancing the science and clinical implementation of reconstructive transplantation. This is the second year that this funding has been secured. • Staff successfully lobbied to increase funding for the International Pacific Halibut Commission per the separation agreement between the U.S. State Department and UW when the IPHC was relocated off campus in 2011. The IPHC will receive an increase in FY15 that will allow them to pay their full annual lease costs without financial assistance from the UW. • Federal Relations worked closely with the Washington State Congressional delegation to secure support for our grant proposal to operate the Region X University Transportation Research Center (PacTrans) within the College of Engineering. The resulting effort helped to secure $3 million per year for three years for transportation-related research.

facebook.com/UWfederalrelations University of Washington Box 351242 Seattle, WA 98195 www.washington.edu/federalrelations 202.624.1420

VISITS AND TOURS IN 2014

THE OFFICE OF FEDERAL RELATIONS HOSTED SEVERAL HIGH LEVEL FEDERAL OFFICIALS TO CAMPUS THIS PAST YEAR AND HELPED ORGANIZE AND PARTICIPATE IN UW VISITS TO THE NATION'S CAPITAL. HIGHLIGHTS INCLUDE: • Hosted a successful day of events on the South Lake Union campus with Dr. Francis Collins, Director of the National Institutes of Health, and U.S. Sen. Patty Murray to see firsthand the work our researchers are doing to improve quality of health here in our state and around the globe. Also organized roundtable discussion with Collins, Murray, and local business leaders lead by President Michael Young and a small gathering with Collins and two-dozen UW graduate and post-doctorate students. • Hosted seven Congressional staff for an intense, two-day tour of UW research in northwest Washington, including stops at NOAA, Friday Harbor Research Laboratories, Oso slide site, and Penn Cove. The trip was designed to give staffers a better, hands-on understanding of the University's research and integration into the local community across Washington State. • Hosted several members of the Washington state Congressional delegation on all three campuses for a wide range of engagements, from the Clean Energy Institute to the Center for Commercialization to Harborview Medical Center, as well as building dedications and laboratory tours. Members visiting campus in 2014 include: U.S. Sens. Patty Murray and Maria Cantwell, U.S. Reps. Suzan DelBene, Rick Larsen, Jaime Herrera Beutler, Derek Kilmer, Jim McDermott, Dave Reichert, Adam Smith, and Denny Heck. • Organized several briefings on Graduate Medical Education (GME) for senior staff for U.S. Sens. Patty Murray and Maria Cantwell. • Organized a day on the Seattle campus for a Navy-funded delegation of Congressional staff focused on clean energy research. • Facilitated a visit by U.S. Secretary of the Interior Sally Jewell to campus to highlight University enrollment research efforts. • Facilitated the Argentinian Ambassador's recent visit to the Puget Sound area. • Engaged with the National Science Foundation to host NSF Days at UW Bothell in the spring; an event where NSF program managers will come to educate researchers on funding opportunities. • Facilitated meetings in Washington, D.C. for campus leadership, including President Young; Deans of Medicine, Nursing, Engineering, Environment, Dentistry, Graduate School, and Education; Chancellors of UW Bothell and Tacoma; and several Vice Presidents and Vice Provosts. • Active planning partner for Washington State TRIO/Gear-Up Day in Washington, D.C. that included staff, students, and parents. • Participated in the STEM education panel discussion hosted by the New Democrats Coalition, along with representatives from other educational organizations in DC and Reps. Suzan DelBene and Derek Kilmer.

facebook.com/UWfederalrelations University of Washington Box 351242 Seattle, WA 98195 www.washington.edu/federalrelations 202.624.1420

B–2 BOARD OF REGENTS MEETING

UW Medicine Board Annual Compliance Report

For information only.

Attachment UW Medicine Board Annual Compliance Report to the UW Board of Regents

B–2/202-15 2/12/15 UW MEDICINE

UW MEDICINE BOARD

ANNUAL COMPLIANCE REPORT TO THE

UW BOARD OF REGENTS

February 12, 2015

B–2.1/202-15 ATTACHMENT 2/12/15

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1

I. INTRODUCTION ...... 4 A. Purpose of the Annual Report ...... 4 B. UW Medicine Structure ...... 4

II. UW MEDICINE COMPLIANCE PROGRAM ...... 5 A. Culture of Compliance ...... 5 B. Compliance Resources ...... 6

III. KEY COMPLIANCE AREAS ...... 7 A. Clinical Billing ...... 7 B. Information Security, Privacy and Identity Theft Prevention ...... 9 C. Stark Law and Anti-Kickback Statute ...... 10 D. Conflicts of Interest ...... 11

IV. LOOKING FORWARD: 2015 ...... 13

Attachment A ...... 14 UW Medicine: Compliance Organizational Chart

Attachment B ...... 15 UW Medicine Board Compliance Committee: 2014 Roster Attachment C ...... 16 UW Medicine Board Compliance Committee: Charter

Attachment D ...... 21 Culture of Compliance: UW Medicine Roles and Responsibilities Attachment E ...... 22 UW Medicine: Compliance Channels of Communication

B–2.1/202-15 2/12/15

EXECUTIVE SUMMARY

The ninth annual UW Medicine Board Compliance Report to the University of Washington (UW) Board of Regents covers the 2014 calendar year, describes UW Medicine’s compliance programs, identifies key responsibilities and highlights the year’s primary compliance activities.

UW Medicine is a large organization, consisting of eight owned or managed entities that operate in a highly regulated environment with a variety of compliance requirements and potential risks. The culture of compliance at UW Medicine is characterized by four major elements:

 Documented formal program activities designed to detect and prevent noncompliance;  Formal structure, executive leadership and board-level involvement;  Clearly defined responsibilities and system-wide education and outreach; and  Formal channels of communication and system-wide reporting line.

In this reporting period, the annual compliance budget was $9 million with 68 full time equivalents (FTEs) dedicated specifically to compliance functions. These figures do not represent the full cost of time, effort and systems devoted to compliance activities throughout the organization.

Four compliance areas (clinical billing; information security, privacy and identity theft prevention; Stark law and Anti-Kickback Statute (AKS); and conflicts of interest (COI)) were the subject of comprehensive presentations to the UW Medicine Board Compliance Committee in 2014. Presentations focused on key concepts, primary risks, mitigation strategies and emerging issues. Major activities and developments in 2014 include the following:

Clinical Billing

The cornerstones of this robust program include system-wide mandatory training and rigorous audit activities. These activities have been in place for Harborview Medical Center (HMC), University of Washington Medical Center (UWMC) and Children’s University Medical Group (CUMG) and UW Physicians (UWP) members for many years. In 2014, a professional fee billing education and audit program was implemented for Northwest Hospital & Medical Center (NWH) physicians and was approved for implementation at Valley Medical Center (VMC).

Facility billing audit plans are developed annually and approved by senior leaders. Several audits in 2014 resulted in the need for focused training activities, repayments and process modifications. Follow-up audits confirmed the effectiveness of remediation activities.

UW Medicine experienced the lowest volume of claims reviewed since the beginning of the Recovery Audit Contractor (RAC) program, as a result of the Centers for Medicare and Medicaid Services (CMS) decision to halt audit activities. Due to a backlog of appeals for claims, CMS offered to pay hospitals 68 percent of the denied payments in exchange for withdrawing appeals, and all four UW Medicine medical centers opted to accept the offer.

Clinical research billing continues to be a nationally recognized focus area for academic health centers. UW Medicine’s audit program is designed to identify billing errors, help researchers understand internal

UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 1 2/12/15 procedures, and provide information to operational areas about the need for system-wide process improvements. Audit results in 2014 showed a very low error rate of 2.67 percent. This is a marked decrease over the prior year attributed to the fact that work in 2013 was largely dominated by audits of Medical Oncology studies performed at the Seattle Cancer Care Alliance (SCCA), which had an average error rate of 10 percent.

Information Security, Privacy and Identity Theft Prevention

In 2014, UW Medicine began the process of integrating Health Insurance Portability and Accountability Act (HIPAA)-related information security compliance with the privacy compliance program under the chief compliance officer, UW Medicine, and associate vice president for medical affairs, University of Washington. HIPAA security rule compliance programming was previously shared by multiple information technology service units within UW Medicine. Strategic planning proposals have also been advanced to coordinate and standardize information security operations across all UW Medicine entities.

Major program activities included the following:

 Numerous policy revisions, widespread outreach to affected operational areas, and revision of existing Business Associate Agreements necessitated by changes in state and federal laws.  Education and outreach on encryption, phishing awareness and extensive enhancement of the new employee orientation and annual competency training materials.  Implementation of the privacy compliance program at VMC.

Inappropriate but accidental disclosures of protected health information (PHI) still comprise the majority of patient privacy incidents. A total of 62 events resulted in privacy breaches that required notification of 150 patients. Due to increased awareness of good data stewardship practices, only two device thefts resulted in a reportable breach.

The Office for Civil Rights (OCR) opened and closed three new patient complaints in 2014; none required further action. Two OCR cases from 2013 were closed without any fines, penalties or other corrective actions. The remaining case from 2013 (involving a malware incident requiring notification of 90,000 patients) remains open. The OCR continues to request follow-up information since its on-site visit in January 2014.

Patient Identification and Clarification Committees met regularly to manage cases involving potential identity theft, and activities were reported to the UW Board of Regents.

Stark Law and Anti-Kickback Statute

The UW School of Medicine (SoM), UWP and UW Medicine Compliance jointly manage compliance with the Stark law, which prohibits physician self-referrals, and the AKS, which prohibits any person from accepting remuneration for referring an individual for items or services covered by federal healthcare programs. UW Medicine reported no Stark law violations in 2014 and continued to direct its efforts toward standardizing the physician contracting process. Compliance efforts related to the AKS included the creation of a work group to develop policy guidance and targeted education for procurement, purchasing and SoM clinical departments.

UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 2 2/12/15

Conflicts of Interest

Situations that may create COI arise in various contexts (including acceptance of gifts, outside professional work, research, authorship, relationships with vendors and purchasing). Numerous regulations and policies govern COI, and compliance efforts involve several UW and UW Medicine offices.

The UW policy on financial COI in research was substantially revised in response to changes in federal rules, and an online financial disclosure system was implemented. The UW Office of Research reviews disclosures and establishes conflict management plans.

Changes to the UW Medicine faculty COI policy prohibit SoM faculty from presenting at speaker’s bureaus and programs designed predominantly for promotional, sales or marketing purposes and endorsing products to promote sales.

UW Medicine’s response to the new federal rule requiring public release of payment information made by industry to healthcare professionals included an educational campaign for faculty and internal reviews of published data to identify inaccuracies.

Section III provides detailed information about major activities and issues occurring in 2014.

UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 3 2/12/15

I. INTRODUCTION

A. Purpose of the Annual Report

Section 1.4.3 of the UW Medicine Board Bylaws requires an annual report to the University of Washington (UW) Board of Regents regarding the effectiveness of UW Medicine compliance programs, which includes but is not limited to, the following topics:

 Key compliance policies and issues  Status of the compliance program infrastructure and reporting relationships  Scope of authority of key positions  Current assessment of compliance risks  Level of resources dedicated to the compliance programs

B. UW Medicine Structure

UW Medicine includes the following owned or managed entities:

 Harborview Medical Center (HMC)1  Northwest Hospital & Medical Center (NWH)  Valley Medical Center (VMC)  University of Washington Medical Center (UWMC)2  UW Neighborhood Clinics (UWNC)  UW Physicians (UWP)  UW School of Medicine (SoM)  Airlift Northwest (ALNW)3

UW Medicine is also a corporate member of two non-profit corporations: Children’s University Medical Group (CUMG), a pediatric practice plan founded with Seattle Children’s (Children’s), and the Seattle Cancer Care Alliance (SCCA) founded with Children’s and the Fred Hutchinson Cancer Research Center (FHCRC). UW Medicine closely collaborates and partners with each entity’s compliance program. All physician clinical services at the SCCA are provided by SoM faculty physicians who are members of UWP or CUMG. SoM faculty physicians provide clinical service at Children’s primarily through CUMG. The SoM also has regular faculty physicians employed at the Puget Sound Veterans Administration Health System hospitals and the Boise VA Medical Center, which are part of the Veterans Administration, a federal agency.

1 HMC is owned by King County and governed by a board of trustees appointed by King County. Pursuant to a management contract between King County, the board of trustees and the UW Board of Regents, UW Medicine manages HMC and provides physician services through UWP. All personnel at HMC, including most faculty physicians, are employed by the UW.

2 The governance authority for hospital accreditation, operations and quality of patient care at UWMC is vested in the UW Medicine Board. The UW Board of Regents retains authority for some financial matters and capital plant expansion at UWMC.

3 All personnel of ALNW are UW or Children’s employees. UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 4 2/12/15

II. UW MEDICINE COMPLIANCE PROGRAM

A. Culture of Compliance

UW Medicine’s culture of compliance is characterized by four major elements:

1. Documented Formal Program Activities

All UW Medicine compliance programs include both risk-based and proactive core components designed to detect and prevent noncompliance. Activities and program elements are documented in writing, readily available for review and regularly reported.

Ongoing Assessment of Regulatory Environment, Best Practices and Program Effectiveness

Timely Investigation of Reported Concerns and Appropriate Response to Noncompliance

Hotlines, Reporting Mechanisms

Monitoring and Auditing

Education and Outreach

Policies, Procedures, Standards of Conduct

2. Formal Structure, Executive Leadership and Board-Level Involvement

Since 2005, coordination of system-wide activities and initiatives has been provided by the chief compliance officer, UW Medicine, and associate vice president for medical affairs, University of Washington. The UW Medicine compliance enterprise (Attachment A) includes UW Medicine Compliance (responsible for all medical center-related compliance), SoM Compliance (responsible for compliance issues involving SoM faculty, trainees and staff), UWP and CUMG compliance programs (responsible for professional fee billing compliance in the practice plans).

Paul G. Ramsey, M.D., chief executive officer, UW Medicine, executive vice president for medical affairs, and dean of the School of Medicine, University of Washington, has delegated additional specific responsibilities for key senior leadership positions. These responsibilities are reflected in the written job description for each position.

The UW Medicine Executive Compliance Committee includes the senior leadership from each UW Medicine entity, as well as representatives from key stakeholder groups. This group receives detailed compliance reports, approves UW Medicine system-wide compliance policies and ensures that there are adequate resources and operational involvement directed to compliance initiatives.

UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 5 2/12/15

The UW Medicine Board Compliance Committee is responsible for reviewing and evaluating the compliance programs and preparing the Chair of the UW Medicine Board to advise the UW Board of Regents, the UW President and Dr. Ramsey regarding the implementation and effectiveness of the UW Medicine compliance programs. The current roster and charter for this committee are provided in Attachments B and C, respectively.

3. Clearly Defined Responsibilities and System-Wide Education and Outreach

UW Medicine expects all faculty, staff, students, trainees and volunteers to meet the professional, ethical and regulatory standards associated with their individual roles. Additional responsibilities are assigned to persons in supervisory, management and leadership positions. These expectations, summarized in Attachment D, are conveyed in new employee orientations, mandatory and voluntary training, regular communications from compliance officers and senior leaders, “Integrity at Work” brochures and the codes of conduct for UWP and CUMG. Communications and training materials are updated as needed throughout the year to reflect any new standards or changes in regulatory requirements.

UWP and CUMG both maintain a helpline to answer compliance questions, and UW Medicine Compliance provides on-line access to policies, procedures, educational resources and useful information.

4. Formal Channels of Communication and System-wide Reporting Line

The formal communication channels (Attachment E) support compliance efforts within each entity and enhance the sharing of information between entities. These groups provide a venue for compliance officers and senior leaders to identify risks and mitigation strategies, respond proactively to emerging issues, report on the status of projects and initiatives and strategize about program priorities.

UW Medicine workforce members have safe communication and reporting channels. The central hotline is maintained by the chief compliance officer, UW Medicine, and associate vice president for medical affairs, University of Washington. It provides for anonymous reporting of compliance concerns, although the majority of inquiries, requests for consultation and complaints are conveyed directly to compliance staff.

B. Compliance Resources

UW Medicine devotes substantial resources to both organization-wide and entity-specific compliance efforts. In fiscal year 2014, the annual budget was $9 million and there were 68 full time equivalents (FTEs) dedicated specifically to compliance functions. This investment remains consistent with previously reported figures.

These figures do not represent the full cost of time, effort and systems devoted to compliance- related activities throughout the organization. For example, this budget does not include considerable time and effort spent by a large number of faculty and staff who serve in administrative positions and have operational and financial oversight responsibilities that are critical for success of the compliance programs.

UW Medicine Board Annual Compliance Report: February 2015 B–2.1/202-15 Page 6 2/12/15

III. KEY COMPLIANCE AREAS

The key compliance focus areas identified for 2014 included the following:

 Clinical billing (facility and professional fee billing for all clinical services including clinical research)  Information security, privacy and identity theft prevention  Stark law and Anti-Kickback Statute (AKS)  Conflicts of interest (COI)

At each meeting of the UW Medicine Board Compliance Committee in 2014, a content expert led an interactive session on a specific focus area. Presentations focused on key concepts, primary risks, mitigation strategies and emerging issues; these are contained in the official committee records.

The following sections describe major activities and developments that occurred in 2014.

A. Clinical Billing

External Reviews. All external review activities are reported in detail each week to UW Medicine leaders. Summary reports are presented to the UW Medicine Executive Compliance Committee and maintained in the official committee files. Highlights in 2014 include the following:

 As a result of several decisions by the Centers for Medicare and Medicaid Services (CMS), including one that halted some audit activities in 2014, UW Medicine experienced the lowest annual volume of claims reviewed since the inception of the Recovery Audit Contractor (RAC) program in 2010. In 2014, 164 claims representing $1.9 million in reimbursement were reviewed, compared to 3,111 claims representing $37,026,406 in 2013.  Facing an enormous backlog of appeals for claims involving medical necessity for inpatient admission, CMS offered to pay hospitals 68 percent of the denied payments in exchange for withdrawing all their appeals of this type. All four medical centers opted to accept the offer.  Industry questions and confusion about CMS’s new rules for inpatient admission led to several enforcement delays. As a result, only “probe and educate” audits of medical necessity for inpatient admissions are allowed on claims for patients admitted from October 2013 through March 31, 2015. UW Medicine is using results of those audits to provide feedback and further guidance to medical staff.  Audits of inpatient claims from multiple managed Medicare and Medicaid insurance payors replaced the RAC program as the largest volume of external audit programs in 2014.

Facility Billing for Medical Centers and Clinics. A facility billing audit plan is developed annually and approved by the UW Medicine Executive Compliance Committee. In 2014, several audits resulted in the need for focused education and training activities. Follow-up audits were then conducted to confirm the effectiveness of remediation activities. VMC claims were included for the first time in several facility billing audits with no significant issues identified.

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One audit identified a process breakdown on the UWMC Inpatient Rehabilitation Unit that led to delays in submitting required patient assessment information to Medicare; this necessitated roughly $500,000 in claim repayments. The process was immediately remedied.

Professional Fee Billing by Healthcare Professionals. UW Medicine Compliance completed professional fee billing compliance education for NWH healthcare professionals in the spring of 2014, followed by pre-billing reviews of documentation and coding. Results were very favorable. Using the NWH model, a comprehensive professional fee billing compliance education and audit plan was developed for VMC and is scheduled for implementation in early 2015.

UWP and CUMG operate separate but closely coordinated professional fee billing compliance programs covering practice plan members. Policies are tailored to address the unique risks of the respective clinical practices and complement specific medical staff processes, facility systems and controls, and research activities. Both practice plans engage in rigorous auditing, on-going risk assessment, mandatory training and investigations of reported or observed billing issues. Efforts in 2014 included the following:

 CUMG Compliance collaborated with Children’s on training to prepare for ICD-10 implementation. All CUMG healthcare professionals and administrative staff received fraud, waste and abuse training.  CUMG completed 100 percent of their scheduled reviews (covering 488 healthcare professionals) and additional risk-based reviews. The annual review process demonstrated an improved error rate of 4.17 percent compared to 7.31 percent in the previous year.  UWP completed 100 percent of their scheduled audits involving 662 healthcare professionals, ranging from routine and new hire audits to second reviews and those targeted to specific billing risks. UWP also conducted three risk assessments affecting 36 healthcare professionals.  Ninety-nine percent of all UWP physicians completed specialty and fraud, waste and abuse compliance training and 99 percent completed ICD-10 training.  A new resident compliance-training program was initiated in 2014, with 81 percent of new residents and 90 percent of established residents completing training by the August 31, 2014 deadline.

Clinical Research Billing. Clinical research billing audits serve several important purposes:

 They provide important feedback to UW Medicine clinical researchers. Each audit report identifies any errors discovered, outlines the necessary remediation and includes educational resources to help improve compliance with billing policies.  They provide feedback to the UW Medicine Clinical Research Billing Operational Integration Committee, a group that is charged with maintaining efficient and effective operational processes for clinical research billing at any site where UW faculty conduct clinical studies.  They identify billing errors that may need to be re-paid, charged to a different account or otherwise corrected.

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In 2014, UW Medicine Compliance completed 36 clinical research billing audits. The results yielded a 2.67 percent error rate. This is a significant improvement from the 9.13 percent error rate in 2013, mainly due to the fact that that work in 2013 was largely dominated by audits of Medical Oncology studies performed at SCCA, which had an average error rate of 10 percent.

The Clinical Research Effort Policy is being reviewed by a task force consisting of representatives from FHCRC, Children’s, SCCA and UW Medicine. The task force will explore implications associated with maintaining the current policy of charging professional services as effort rather than as professional fees; identify strategies to create consistencies and efficiencies across sites of practice; consider application of the policy at NWH and VMC; and evaluate the impact of federal guidance on clinical research effort reporting across the institutions.

B. Information Security, Privacy and Identity Theft Prevention

Organizational Refinements. The chief health system officer, UW Medicine, and vice president for medical affairs, University of Washington, also serves as the UW privacy official who oversees University compliance with the Health Insurance Portability and Accountability Act (HIPAA). The HIPAA privacy rule compliance program in UW Medicine has been centralized under the chief compliance officer, UW Medicine, and associate vice president for medical affairs, University of Washington, since 2009. During that time, HIPAA security rule compliance programming was shared by a number of information technology service units within UW Medicine.

In 2014, UW Medicine began the process of integrating HIPAA-related information security compliance with the existing privacy compliance program. This will centralize all HIPAA compliance programming including development and maintenance of regulatory policies, related education and outreach, monitoring and auditing, reporting to appropriate leadership groups, and investigation of all privacy, identity theft and information security complaints.

At the same time, strategic planning proposals have been advanced to coordinate and standardize information security operations across all UW Medicine entities. Early efforts have focused on working to define a common security mission, vision, strategy, architecture and approach for security operations. This work is under the direction of the chief information officer, UW Medicine, Information Technology Services (ITS).

Program Activities: Information Security. UW Medicine ITS information security activities in 2014 included the following:

 Began work to develop and refine technical security standards to ensure protection of confidential electronic information.  Provided outreach and education to clinical departments on encryption and other security elements.  Conducted computer user “phishing” awareness tests (approximately 80 percent of users did not click on the “phishing” link imbedded in test emails). Individuals who did click on the link were automatically re-directed to an educational website about phishing prevention.

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Throughout the testing, security and help desk staff provided direct responses to user calls and email inquiries.  Made progress toward adoption of best practice industry standards for conducting security risk assessments.

In addition, UW Medicine Compliance and UW Medicine ITS completed significant enhancements of the new employee orientation and annual competency training materials.

Program Activities: Privacy and Identity Theft Prevention.  An unprecedented number of changes to Washington State law governing patient information required numerous policy revisions and widespread outreach to affected operational areas.  All existing Business Associate Agreements were revised to reflect changes required by the Omnibus Final Rule.  UW Medicine Compliance and VMC completed operational changes to bring VMC into HIPAA compliance, provided education at all levels of the organization and implemented an audit program for clinical areas and electronic medical record accesses.  Patient Identification and Clarification Committees met regularly to manage cases involving potential identity theft, and activities were reported to the UW Board of Regents.

Issues and Investigations.  Inappropriate but accidental disclosures of protected health information (PHI) still comprise the majority of privacy incidents. The most frequent error occurs when patient documents are retrieved from a shared printer and provided to the wrong patient. Safeguards and mitigation strategies have been the subject of training and outreach.  A total of 62 events resulted in privacy breaches that required notification of 150 patients.  There were fewer device thefts in 2014 compared to previous years, and due to increased awareness of good data stewardship practices, only two thefts resulted in a reportable breach.  Ten workforce members were found to have intentionally and inappropriately accessed or disclosed patient records; each received appropriate corrective actions.  The Office for Civil Rights (OCR) opened three new patient complaints in 2014 and closed each of them without further action after completing the reviews.  The OCR closed two cases from 2013 without any fines, penalties or other corrective actions. The remaining case from 2013 (involving a malware incident requiring notification of 90,000 patients) remains open. OCR continues to request follow-up information since its on-site visit in January 2014.

C. Stark Law and Anti-Kickback Statute

The Stark law prohibits physicians from referring Medicare and Medicaid patients for designated health services to an entity with which the physician (or immediate family member) has a financial relationship, unless a regulatory exception applies. There were no significant changes to the Stark law in the past year. UW Medicine did not detect or report any Stark law violations in 2014. Compliance with the Stark law is managed jointly by the SoM, UWP and UW Medicine Compliance. In the past year, efforts have continued to focus on maintaining a

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standardized physician contracting process and appropriate review and fair market value analysis as necessary.

Planned activities for the coming year include:

 Continue work project to standardize documentation for faculty physicians engaged in teaching and other activities throughout the Washington, Wyoming, Alaska, Montana and Idaho (WWAMI) region to clearly identify all services provided and compensation or benefits received.  Continue to review any remuneration the UW and UW Medicine provide to non-faculty, community physicians for compliance with the Stark law.

The AKS prohibits the knowing and willful payment or acceptance of remuneration for referring an individual for items or services covered by a federal healthcare program, or for purchasing (or recommending for purchase) an item or service that is reimbursable under federal healthcare programs. Unlike the Stark law, the AKS applies not only to physicians but also to non-physicians and entities. There were no significant changes to the AKS in the past year. During 2014, educational efforts continued to focus on the UW procurement, purchasing and SoM clinical departments. In addition, a Vendor Gifts Work Group was created to develop and refine guidance regarding vendor support of educational, research and other activities.

Planned risk mitigation activities for the coming year include:

 Continue to review and develop policies and procedures on disclosure of conflicts in connection with drug and device purchases;  Continue to develop and refine guidance regarding vendor support of educational and research activities; and  Continue to develop and refine guidance regarding contracts with vendors.

D. Conflicts of Interest

COI are governed by a significant number of regulations and policies, including but not limited to the following:

 Revised Code of Washington (RCW) 42.52 Ethics in Public Service  UW Executive Order No. 32 Employee Responsibilities and Employee Conflict of Interest  UW Administrative Policy Statement (APS) 47.3 Outside Consulting Activities and Part- Time Employment by Professional or Classified Staff Employees  Grants Information Memorandum (GIM) 10: Financial Conflict of Interest Policy  UW SoM Policy on Potential Financial Conflicts of Interest for Commercial and Non-Profit Entities  UW SoM Ghost Authorship Policy  Entity level policies on specific conflict of interest issues such as vendors in clinical areas and drug and device purchasing  UWP conflicts of interest policy  CUMG conflicts of interest policy

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The National Institutes of Health (NIH) rules regarding disclosure of financial COI in research became effective in 2012. Numerous system-wide changes to policies, forms and reporting systems have taken place since that time to ensure compliance. The UW Office of Research now has primary responsibility for the review of these disclosures and establishment of conflict management plans.

This was the fifth year of the UW Medicine faculty COI policy. The purpose of the policy is to ensure that faculty avoid, or disclose and address, perceived or real COI between their responsibilities as faculty and their outside activities, while encouraging appropriate relationships between faculty and industry to the extent they further the mission of UW Medicine. The policy addresses such issues as consulting, service on boards and advisory panels and other outside work; speeches, meetings and travel funded by outside entities; gifts; food and beverages; teaching activities; and outside support for educational events. Key provisions of this policy include:

1. SoM faculty must disclose in advance the amount of compensation to be received for outside work. 2. SoM faculty are now prohibited from presenting at speaker’s bureaus or other programs designed solely or predominantly for company promotional, sales or marketing purposes. 3. SoM faculty members are prohibited from endorsing a product for the primary purpose of promoting its purchase.

A workgroup was convened to coordinate the UW’s activities and responses to the anticipated public release of a database containing payments made by industry to certain healthcare professionals. The database was required by the Sunshine Act provision of the Affordable Care Act of 2010 to promote transparency in the financial relationships between industry, teaching hospitals and physicians. UW Medicine undertook an education campaign for faculty to prepare them to review and respond to both the submittal of data by industry and publication of the data by the federal government.

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IV. LOOKING FORWARD: 2015

Planning for compliance activities is an on-going process involving all program components identified in Section II.A.1 (including auditing, development and modification of policies and education). Priorities are heavily influenced by the increasingly dynamic external regulatory environment (including new and changing rules, agency audit plans and settlements), as well as our own audit findings, issues and incidents, and risk assessments.

In 2015, we expect to focus on four major areas:

1. Sustain a proactive, risk-based internal audit and monitoring program for clinical billing and HIPAA, while continuing to meet the demands of external review programs. 2. Build a collaborative relationship between information security operations and compliance to ensure that technical aspects of security operations conform to regulatory expectations for configuration management, vulnerability testing, system certifications, risk assessment and risk mitigation efforts. 3. Continue to enhance HIPAA compliance and information security awareness through on-going education and refinement of internal tools and controls. 4. Continue development and refinement of policies, procedures, related guidance and other Stark law and AKS risk mitigation activities detailed in Section III.C–D.

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ATTACHMENT A

UW MEDICINE COMPLIANCE ORGANIZATIONAL CHART

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ATTACHMENT B

UW MEDICINE BOARD COMPLIANCE COMMITTEE: 2014 ROSTER

Voting Members

Rich Jones, board member and committee chair Bruce Pym, community member o President and CEO of the Washington Society of Certified Public Accountants o Managing Director, Meridian Capital LLC o Former officer and member of the Fred Hutchinson Cancer Research Center Board; o Former president and CEO of Elliott Cove Capital Management founding member and former chair of the Seattle Cancer Care Alliance Board o Former president of the King County Bar Association, board chair of the United Way of King County, o Former officer and member of the Pacific Science Center Board member of the board for the Seattle Repertory Theatre and the Board of Trustees, UW Law School o Retired partner of Ernst & Young LLP Foundation, and board chair of the 5th Avenue Theatre Association o Long-time member of Fred Hutchinson Cancer Research Center Board, member of the Fred Hutchinson Jim Anderson, board member Cancer Research Center Board committee charged with oversight of the conflict of interest litigation and first o Chair of Health Resources Northwest/Northwest Hospital (HRN/NWH) chair of the Patient Protection Oversight Committee o Chair of HRN/NWH Information Systems & Committee and Finance Committee o UW alumnus o Former chair of the Strategic Planning Committee for the Board of Directors for Northwest Healthcare Insurance Services and Washington Casualty Company Dan Dubitzky, community member o Former chair of the Budget Committee of the Board of Overseers of Whitman College o Lead counsel for UW in its response to the now-completed Medicare fraud investigation o Former member of the board of directors for the Pacific First Financial Corporation, Multicare Health o Former board member of the Northwest Defender Association and the Tom Wales Foundation, previous System, Tacoma/Pierce County Economic Development Council and the Corporate Council for the Arts chair of the Criminal Law Committee of the Federal Bar Association and a lawyer's representative from the and Reality Based Learning Federal Bar Association to the Ninth Circuit Judicial Conference o Former community member for the UW Physicians Board Gary Kohlwes, community member o While in private practice, represented several Fortune 500 companies and corporate officers o Community trustee Valley Medical Center Board of Commissioners with clients from healthcare, fisheries, aerospace, architecture and timber o Former member of the Valley Medical Center Board of Commissioners o Former member of the Washington Pacific Insurance Summit Pacific Board Keith Loveless, community member o Former superintendent of the Renton School District o Former executive vice president, general counsel and corporate secretary of Alaska Air Group o Former board member of Renton Chamber of Commerce and Seattle Country Day School and Alaska Airlines o Executive director and board member of the First Financial Northwest Foundation o Panelist for numerous American Bar Association forums on air and space law o Board chair of First Savings Bank Northwest o Recognized by the Puget Sound Business Journal as Outstanding Corporate Counsel for midsized companies o Former associate counsel at Bogle & Gates

Non-Voting Members

UW Medicine School of Medicine Practice Plans Paul G. Ramsey, M.D., chief executive officer, UW Medicine, executive vice Mark Green, associate dean for business Mika Sinanan, M.D., president, UW Physicians president for medical affairs, and dean of the School of Medicine, Noella Rawlings, compliance director Catherine Boelke, executive director, UW Physicians University of Washington Christie Moon, compliance director, UW Physicians Johnese Spisso, chief health system officer, UW Medicine, and vice president for Hospitals/Clinics Robert Sawin, M.D., president, Children’s University Medical Group medical affairs, University of Washington Paul Hayes, executive director, Harborview Medical Center Christine Kessler, executive director, Children’s University Medical Group Ruth Mahan, chief business officer, UW Medicine, and vice president for Stephen Zieniewicz, executive director, UW Medical Center Sheryl Forrester, compliance officer, Children’s University Medical Group medical affairs, University of Washington Meg Kerrigan, executive director, UW Neighborhood Clinics Lori Mitchell, chief financial officer, UW Medicine, and vice president for Cindy Hecker, executive director, Northwest Hospital Attorney General’s Office medical affairs, University of Washington Christine Martin, executive director, Airlift Northwest Jane Yung, assistant attorney general, University of Washington Sue Clausen, chief compliance officer, UW Medicine, and associate vice Rich Roodman, chief executive officer, Valley Medical Center president for medical affairs, University of Washington Traci Pranzini, integrity officer, Seattle Cancer Care Alliance Non-Profit Entities General Counsel Lori Oliver, director of legal and business matters, UW Medicine, associate vice Margaret Peyton president for medical affairs, University of Washington Liz Shirley, enterprise finance officer, UW Medicine, associate vice president for VMC General Counsel medical affairs, University of Washington David Smith Lisa Westlund, compliance officer, UW Medicine Wendy Giles, chief operating officer, UW Medicine IT Services Ken Davis, director, IT Security Operations, UW Medicine IT Services

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ATTACHMENT C

UW MEDICINE BOARD COMPLIANCE COMMITTEE: CHARTER

Committee Name

UW Medicine Board Compliance Committee

Committee Establishment and Authority

Section 4.4 of the UW Medicine Board Bylaws establishes and defines the authority of the UW Medicine Board Compliance Committee.

Committee General Duties

In conformance with Section 4.4.1 of the UW Medicine Board (UWMB) Bylaws, the Committee is responsible for reviewing and evaluating the compliance programs of UW Medicine component entities4 and preparing the Chairperson of the UWMB to advise the Board of Regents, the President, and the Chief Executive Officer, UW Medicine, Executive Vice President for Medical Affairs, University of Washington, and Dean, University of Washington School of Medicine (CEO/EVPMA/Dean) regarding the implementation and effectiveness of UW Medicine Compliance Programs. The Committee will participate in the development of the annual UWMB compliance report to the UW Board of Regents in conformance with Section 1.4.3 of the UWMB Bylaws.

Although not specifically provided for in the UWMB Bylaws, the Committee shall keep the UWMB informed of its activities and findings concerning the implementation and effectiveness of UW Medicine Compliance Programs. Such duty anticipates a report from the Chair of the Compliance Committee (or other member of the Committee if the Chair is not available) to the UWMB at the next meeting of the UWMB following a meeting of the Compliance Committee.

Committee Specific Duties and Responsibilities

Duties of the Committee include but are not limited to advising on the following (UWMB Bylaws, Section 4.4.1):

 key compliance policies;  compliance program infrastructure and reporting relationships;  scope of authority of key positions;  ongoing assessment of compliance risks and the effectiveness of mitigation activities; and  level of resources dedicated to the compliance programs.

4 Component entities include Harborview Medical Center (HMC), Northwest Hospital & Medical Center (NWH), Valley Medical Center (VMC) UW Medical Center (UWMC), UW Neighborhood Clinics (UWNC), UW Physicians (UWP), UW School of Medicine (SoM) and Airlift Northwest (ALNW). Because UW Medicine also has part ownership of Children’s University Medical Group (CUMG) and the Seattle Cancer Care Alliance (SCCA), these entities participate on the Committee.

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In addition, the Committee will:  monitor the progress of new initiatives, process improvement projects, and programs developed in response to UW Medicine compliance reviews and risk assessments;  receive reports of relevant noncompliance and misconduct as the Chief Compliance Officer, UW Medicine/Associate Vice President for Medical Affairs, University of Washington (CCO/AVPMA) deems appropriate, including summary reports on compliance items reported on the UW Medicine Hot Line reporting system and the resolution of those matters  make recommendations to improve the effectiveness of UW Medicine compliance programs; and  review and evaluate, at least annually, the performance of the Compliance Committee, including fulfillment by the committee of this charter, the adequacy of this charter and submit any proposed recommendations for change to the UW Medicine Board for their review and approval.

Committee Member Composition

In conformance with Section 4.4.2 of the UWMB Bylaws, the Chairperson of the Committee is appointed by the Chairperson of the Board, with the approval of the CEO/EVPMA/Dean.

The voting members of the Committee are appointed by the Chairperson of the Board in consultation with the CEO/EVPMA/Dean. Voting members include:

 At least three Board members, including the Chairperson of the Board or designee  Up to three community members who are not members of the Board.

Board members and community members will be appointed to the Committee for a term of one year, which may be renewed annually. Any vacancies that occur will be filled in the same manner as the initial appointments to the Committee.

The following non‐voting individuals are also invited to attend the Committee meetings on a regular basis:

 CEO/EVPMA/Dean  Chief Health System Officer, UW Medicine/Vice President for Medical Affairs, University of Washington;  Chief Business Officer, UW Medicine/Vice President for Medical Affairs, University of Washington;  CCO/AVPMA;  Controller, UW Medicine/Associate Vice President for Medical Affairs, University of Washington  Director of Legal and Business Matters, UW Medicine/Associate Vice President for Medical Affairs, University of Washington  Health System Financial Operations Officer, UW Medicine/Associate Vice President for Medical Affairs, University of Washington;  Executive Directors of HMC, UWMC, UWNC, UWP, ALNW, and CUMG;  Chief Executive Officer of VMC

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 Presidents of NWH and UWP;  Chairman of the Physician Education, Billing and Compliance Committee for CUMG;  Associate Dean for Business, School of Medicine;  General Counsel for UWP, CUMG, and VMC;  Assistant Attorney General for UW;  Compliance Officer(s)/director(s) for UW Medicine, VMC, UWP, SoM, CUMG and SCCA; and  Other non‐voting individuals invited by the Committee Chair.

Committee Member Requisite Skills and General Qualifications

Committee members are selected for the following skills and qualifications:

 The highest ethical standards and integrity;  A willingness to act on and be accountable for Committee decisions;  The ability to provide informed and thoughtful counsel to senior leaders and compliance officers;  A history of achievement that reflects superior standards;  Loyalty and commitment to driving the success of UW Medicine; and  A background that provides a portfolio of experience and knowledge commensurate with UW Medicine’s needs.

Committee Decision‐Making Processes

In conformance with Section 4.4.4 of the UWMB Bylaws, a majority of voting Committee members will constitute a quorum for the purpose of making official decisions and taking formal actions. Other types of decision‐making will be based on member consensus.

Committee Reporting Requirements

The Committee shall report meeting proceedings and recommendations to the UW Medicine Board at the Board’s regularly scheduled meetings.

Committee Member Obligations

 Members shall attend the majority of scheduled Committee meetings and notify the Committee Chair when circumstances prevent attendance.  Members will review germane materials in advance of each Committee meeting.  Members will not act as an agent for any person or organization where such an act would create a conflict of interest with the terms of service to the Committee.

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 Members will recuse themselves from discussions or decisions that may represent a potential conflict of interest.  Members will safeguard the confidentiality and security of information obtained during the course of their Committee service.

Annual Committee Goals, Objectives and Performance Measures

. Goal: Maintain awareness of UW Medicine compliance program activities, including policy development, risk assessment, education/outreach, auditing/monitoring, handling of complaints, and corrective actions.

Performance Measure: The Committee receives and reviews at least two comprehensive written reports per year from each UW Medicine Compliance Officer, and members have opportunities to ask questions and provide feedback on program activities.

. Goal: Maintain awareness of UW Medicine’s primary compliance risks, mitigation strategies, and compliance work plans.

Performance Measure: The primary risk areas are identified annually. At each meeting of the Committee, significant time is devoted to an in‐depth review of at least one risk area, led by an appropriate content expert. Members have opportunities to ask questions and provide feedback.

. Goal: Maintain awareness of emerging compliance issues facing UW Medicine.

Performance Measure: Each meeting of the Committee will include briefings about emergent issues, changes in the regulatory environment, and late‐breaking or urgent developments. Additionally, each meeting will reserve an executive session for briefings of a sensitive nature. Members have opportunities to ask questions and provide feedback.

Committee Administrative Matters

In conformance with Section 4.4.3 of the UWMB Bylaws, the Compliance Committee meets at the call of the Chairperson as often as necessary, but not less than quarterly, to perform its duties. The annual schedule of meetings (including planned focus areas) is developed and distributed at the beginning of each fiscal year. This schedule is updated as necessary. Material referenced in the schedule is provided to Committee members one week in advance of the relevant meeting.

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The Committee is staffed by the CCO/AVPMA.

Voting members of the Committee are oriented to their roles and responsibilities in a joint meeting with the Committee Chair and the CCO/AVPMA.

Written minutes are maintained of each Compliance Committee meeting. Minutes shall accurately record the topics discussed, decisions reached, and attendance of Committee members and guests. Official documentation of each meeting, including minutes, supporting handouts, and presentation materials, shall be maintained by the office of the CCO/AVPMA.

The Committee Charter will be reviewed annually.

Other Committee Items

None.

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ATTACHMENT D

CULTURE OF COMPLIANCE: UW MEDICINE ROLES AND RESPONSIBILITIES

Chairs, Directors, Individual Senior Leaders Compliance Managers and Supervisors

 Practice personal,  Convey accountability  Provide active  Maintain effective professional, ethical and expectations to direct leadership; establish compliance programs to legal accountability reports accountability prevent, detect and expectations and resolve noncompliance  Understand role-specific  Monitor compliance professional standards; with federal and state responsibilities and with University of allocate resources for laws and UW policies applicable policies and Washington policies and compliance program procedures; complete all procedures activities  Establish UW Medicine required training compliance policies,  Ensure direct reports  Approve UW Medicine education and outreach  Comply with University understand their roles, policies; support strategies, internal of Washington (UW) responsibilities and education and outreach controls, audit plans policies and procedures applicable policies and activities; convey and implementation procedures; enforce implementation tools  Protect patient privacy, onboarding and annual expectations to safeguard confidential refresher training operational areas  Audit compliance with information and utilize requirements UW Medicine policies appropriate technical  Enforce compliance; and internal controls; controls; observe access  Oversee operational evaluate audit findings report findings; analyze rights and restrictions implementation of and convey expectations trends compliance policies and for improved results  Report compliance procedures; improve  Assess compliance risks concerns and potential audit results  Participate in risk using internal and compromises of assessment process; external data, trends confidential information  Actively manage data evaluate results; and regulatory to administration or access rights; monitor determine system-wide developments; compliance; cooperate use of appropriate risk tolerance; make risk recommend program fully with investigations safeguards and controls; management decisions modifications comply with risk management decisions  Receive investigative  Investigate suspected reports; evaluate noncompliance with  Address concerns findings and determine UW Medicine policies; and/or refer to appropriate corrective notify affected unit compliance; implement actions and sanctions heads and senior corrective actions and leaders; report findings; sanctions analyze trends

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ATTACHMENT E

UW MEDICINE: COMPLIANCE CHANNELS OF COMMUNICATION

Committee and Chair Committee Role Members UW Medicine Board  Wide scope of advisory responsibilities  Voting members: community members and Compliance Committee, including strategic planning, advocacy and appointed members of the UW Medicine Board chaired by Rich Jones support for compliance efforts, assessment of  Non-voting members: senior executive leaders, (UW Medicine board progress on major compliance matters practice plan presidents, legal counsel, entity member)  Meets at least quarterly executive directors, compliance officers  Receives semi-annual reports regarding entity-  See Attachment B for the full roster specific program activities  Receives reports at each meeting about urgent, emergent and on-going issues  Reports committee activities to the UW Medicine Board  See Attachment C for the committee charter

UW Physicians (UWP)  Forums for engaging administrative, clinical and  Practice plan executive directors and presidents Business Excellence operational leaders in the clinical billing  Physicians and clinical department Committee, chaired by compliance program representatives John Bramhall, M.D.  Works closely with compliance and operations  Legal counsel staff to assess risk, establish compliance  Training and operational staff Children’s University standards, monitor program effectiveness,  Compliance officers Medical Group implement effective educational and outreach (CUMG) Physician activities Billing and Education  Endorses policies and standards Compliance Committee,  Reports committee activities to the respective chaired by Jack Salerno, practice plan board M.D.

UW Medicine Executive  Forum for engaging senior executives, entity  Senior executive leaders Compliance Committee, level administrators and operational  Entity executive directors, medical directors chaired by Johnese stakeholders in compliance planning, policy financial officers, chief nursing officers Spisso, chief health approval, problem solving and risk assessment  Directors from key system-based operational system officer,  Works closely with compliance staff to evaluate units UW Medicine, and vice system-wide compliance issues and monitor  Compliance officers president for medical progress toward resolution of identified issues  Legal counsel affairs, University of  Establishes strategies for communicating and Washington (UW) enforcing expectations to staff

Northwest Hospital &  Forums for planning and executing entity-  Entity executive directors, medical directors, Medical Center (NWH) specific operational requirements of UW financial officers, chief nursing officers Compliance Committee Medicine compliance programs  Directors from key entity-based operational units and Valley Medical  Meets at least quarterly  Legal counsel Center (VMC)  Reports committee activities to the respective  Billing and Health Insurance Portability and Compliance Committee, hospital board Accountability Act (HIPAA) compliance chaired by Lisa specialists Westlund, compliance officer, UW Medicine

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Committee and Chair Committee Role Members Compliance Officers  Forum for engaging entity compliance officers  UW and UW Medicine compliance officers and Group, chaired by Sue in the identification of and response to content experts Clausen, chief regulatory developments, sharing best practices  Legal counsel compliance officer, and discussing current and emerging risks  UW and UW Medicine representatives from UW Medicine, and  Meets quarterly compliance partners (for example, patient associate vice president  Works collaboratively on mutual concerns and financial services, information technology for medical affairs, UW urgent and emergent issues that involve service units, risk management, Health Sciences multiple entities Administration, Internal Audit)

UW Medicine  Venue for engaging senior leaders in important  Senior executive leaders Operations and Finance topical areas for UW Medicine, including  Entity executive directors Committee, chaired by compliance issues, financial planning, risk  School of Medicine chairs Paul G. Ramsey, M.D., assessment and mitigation, policy development  System financial officers chief executive officer, and implementation and accountable care  Chief compliance officer UW Medicine, executive transformation  Directors and associate deans for business and vice president for  Meets twice monthly legal matters medical affairs, and dean  Accountable care transformation leaders of the School of Medicine, UW

Executive Clinical  Venue for engaging senior leaders and  Clinical leaders and operational heads from all Leadership, chaired by operational heads in important topical areas for UW Medicine health system entities Johnese Spisso, chief the UW Medicine clinical enterprise, including  Representatives from human resources, risk health system officer, related compliance issues, strategic operating management and compliance UW Medicine, and vice and financial planning, risk assessment and president for medical mitigation, policy analysis and operational affairs, UW implementation and regulatory affairs  Meets monthly

Security Program  Venue for engaging senior leaders in important  Senior executive leaders Executive Committee, topical areas associated with information  Entity executive directors chaired by Johnese security, including related compliance issues,  UW and UW Medicine chief information Spisso, chief health approval of security policies and strategic plans, officers system officer, risk assessment and mitigation  Staff representatives from UW Medicine UW Medicine, and vice  Meets quarterly information technology service units, including president for medical information security departments affairs, UW  Compliance officers

UW Medicine Board Annual Compliance Report: February 2015 Page 23 B–2.1/202-15 2/12/15 Faculty Senate Chair’s Report to Board of Regents Feb. 12, 2015

Let me begin by congratulating Ana Mari Cauce for her appointment as interim President. The Regents have made an excellent choice and I congratulate them on doing so. In particular, I want to thank Chair Bill Ayers who reached out to me to seek my perspective on the faculty’s interests during this time of transition.

I also want to thank President Young for his service and his collegiality. He and Ana Mari have collaborated effectively with each other and with the faculty. I believe that Ana Mari will continue with that kind of collaborative style, and the leaders of the faculty senate are eager to support her success.

Ana Mari has been an excellent provost. She understands the faculty thoroughly having been a long-term faculty member herself, as well as a chair, dean and provost. She has dedicated her career to the UW. She understands the institution, the faculty and students, the alumni, the business community, the legislature, and the region and state. She is remarkably well-informed and she works very hard. I don’t know how she keeps track of the innumerable issues that she does monitor. She is collegial and kind; she is terrific with students; she can and will talk to anyone – and hear there. She is honest, candid, and intellectually rigorous. Importantly, for a president, she knows how to say no when necessary. I have been honored and educated by working with her. For me, she is the model of an academic leader.

SI want to take a moment now to talk about the appropriate role of the faculty in the next steps as the institution seeks a permanent president. I hope that the search will be expedited as much as possible so that we do not have a long interim period. I believe that a permanent appointment gives the president the authority to be most effective during these very challenging times. At the same time, the search process should be duly deliberative.

You have already heard from Professor Christophe Giebel, that AAUP advocates faculty involvement in an open and transparent search process for university administrators. The faculty senate agrees and, indeed, we passed a resolution to that effect a few years ago.

There are two stages at which I urge the Regents to seek wide faculty input and feedback. First, faculty should be involved in defining the criteria for the next president -- what we want the next president to do and what kind of person is most likely to be able to accomplish those things. Among other things, we need to consider whether we will be best served by someone who knows the institution well or by a newcomer. Second, the faculty should be involved in defining the search process. We recognize that the early stage of a search may require confidentiality. However, the faculty should have an opportunity to engage with and evaluate any finalists.

Thank you very much.