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1. Report from the Academic Affairs Committee

The committee meeting began with a report from Eugene Tempel, founding Dean of the Lilly Family School of Philanthropy. He provided background on how the school evolved through a 1987 resolution by the Board of Trustees to create the IU Center on Philanthropy and then the 2012 Trustee resolution establishing the IU School of Philanthropy. He concluded his remarks with a report on the transition process as he leaves his post as the founding Dean and incoming Dean Amir Pasic begins his tenure in January, 2015. Chairman Tobias and President McRobbie extended their deep appreciation to Dean Tempel for his stellar leadership as founding Dean and his groundbreaking work in philanthropic studies.

Executive Vice President John Applegate, Provost Lauren Robel, Dean of the School of Medicine Jay Hess and IUPUI Executive Vice Chancellor Nasser Paydar presented an update on university rankings. EVP Applegate provided information on several ranking organizations such as Shanghai and US News and World Report. Provost Robel noted that individual rankings for certain schools such as the Kelley School of Business and the Maurer Law School are important to alumni and donors and that programs within schools may be highly ranked but may not be reflected in the campus’ overall ranking. She said that to move the metrics to attain more favorable rankings will require resource re-allocation which must be done without damaging other programs. Dean Hess said that chairs of School of Medicine departments are vital in recruiting high level faculty which impacts rankings. He also noted that the school and IU Health must work together to establish common goals to improve rankings of each institution. He said that medical school rankings are based on various data indicators between research and primary care, which have increased for the school over 2013. Executive Vice Chancellor Paydar said that elements of rankings can be broken down to use the information more effectively such as rankings by schools and campus rankings. IUPUI campus administrators focus their attention to rankings by US News and World Report and the Washington National Monthly since their metrics better match the campus mission of research, teaching and civic engagement.

Provost Robel commented on several personnel matters. She announced scientist Sue Carter as the new Director of the Kinsey Institute and the recruitment of Hui-Chen Lu to the Department of Psychological and Brain Sciences. She also announced James Shanahan as the new Dean of the Media School. She thanked departing Ruth Lilly Dean of University Libraries Brenda Johnson as she takes a position at the University of Chicago.

2. Report from the University Relations Committee

The committee meeting began with a special presentation of the Old Oaken Bucket by Mark Dean, Assistant Athletic Director for Alumni Relations.

Next, a presentation on IU’s brand strategy and university marketing was made by Chief Marketing Officer Eric Bruder and Vice President for Engagement Bill Stephan. Mr. Bruder shared the process of developing the brand for the university, “Fulfilling the Promise.” He continued that “Fulfilling the Promise” delivers against key objectives of grand achievements of the past two centuries and the potential and optimism of IU’s third century. He said the next steps include developing a creative campaign, visual identity refinements and advanced media deployment.

IU Southeast Chancellor Ray Wallace presented his first campus report. He began by providing an overview of his activities since he arrived at IUS. He provided a student and campus profile, an overview of academic programs and the growth of online education, information about student services and support including career counseling and internships, athletic accomplishments, community and student engagement initiatives, and alumni and development activities. He introduced four IUS students who each shared their stories about their backgrounds, educational, research and student experiences at IU Southeast.

Stephon Moore, president of the IU Southeast Student Government Association, addressed the board regarding student led initiatives on campus. He said that over the past two years the association has worked with the Office of Student Affairs to engage more students and provide additional support for student organizations. Student involvement has increased significantly as demonstrated in Greek Life volunteer hours multiplied four fold, the addition of five new student organizations, and significant increases in fundraising events and monies raised. Mr. Moore shared student successes including significant awards in journalism and English in competitions that included universities and colleges in the southern Indiana and northern Kentucky region and statewide competitions.

3. Report from the Finance, Audit and Strategic Planning Committee

President McRobbie began the meeting by commenting on The Bicentennial Strategic Plan for Indiana University. The plan was initiated in 2013 when he directed all campuses to collectively develop five year strategic plans that would culminate in goals being completed and recognized in IU’s bicentennial year of 2019-2020. He said the plan elaborates upon his Principles of Excellence which were approved by the Board of Trustees in 2010. The plan includes eight major bicentennial priorities and builds on the strategic planning efforts on all campuses and by many units which involved hundreds of participants. He commended Executive Vice President John Applegate and Professor Michael Rushton from the School of Public and Environmental Affairs for their leadership in overseeing the creation of the plan. He also recognized members of the university community who submitted comments on the draft of the plan. He continued that the newly revised plan will give focus our efforts to ensure that IU will thrive in an environment of rapid change, global competition and increasingly stressed resources. He stated that the plan ensures IU continues to offer an education that is of the highest quality while keeping costs to students low, continues to focus on research efforts in health sciences and elsewhere, allows IU to effectively address challenges facing pre-school to 12th grade education in Indiana and beyond, supports efforts to become a more global university through the expansion of a network of Gateway Offices around the world, strategically transforms the IU Research and Development Corporation, and explores the addition of a program in modern IT-enable systems engineering. The President commended The Bicentennial Strategic Plan for Indiana University to the Board of Trustees and recommended its approval. He then invited EVP Applegate and Professor Rushton to address the Trustees.

EVP Applegate provided an overview of the revisions made to the plan upon the receipt of over 330 comments that were thoughtful and helpful in creating the final version. He said there is a new Bicentennial Priority Two which focuses specifically on faculty. The biggest change is the creation of a community of scholars as an eighth priority. He continued that this priority states what the university will do to increase faculty interaction and collaboration with one another as well as with students and with faculty peers at other institutions. The goal is to create an environment for faculty to do their best work thus positioning the university to attract and retain the best and brightest minds.

He said that several other aspects of the plan were changed to reflect feedback including more explicit emphasis on the work of regional campuses, better representation of graduate education, greater recognition of Humanities and social science research, and the process for re-imagining education has been revised to be more faculty-centric. He continued that the plan more explicitly recognizes staff, safety and wellness. With regards to implementation, he said it is much more defined in the final version and that core mission work will happen on campuses, in schools and units. He also noted that faculty will be involved in the implementation in a deep and comprehensive way. He said an important aspect is that the plan is to be dynamic with very broad goals which are important in the rapidly changing higher education environment. He continued that the budget process will greatly influence the execution of the plan. Mr. Applegate requested to formally revise the mission, value and vision statements so they reflect the plan and that the term “continuing studies” be deleted from the mission statement since IU no longer has the school.

The next agenda item was the annual financial report given by Associate Vice President and Controller Joan Hagen. Ms. Hagen presented the fiscal year 2014 audited financial report which received an unqualified opinion from the Indiana State Board of Accounts. She said the university’s net position increased $201 million which was a 6% return on the beginning position which gave the university an 8% five year average overall return. She continued that net investment in capital assets continues to be the largest single residual equity measure at $1.8 billion followed by unrestricted net assets at $1.5 billion. The remainders of IU’s net assets are restricted for endowment spending, research, capital projects and debt service. Ms. Hagen said the statement of net position was marked by an overall shift toward long term assets primarily due to investment portfolio rebalancing to optimize yield and unrealized gains on investments. She stated that IU’s balance sheet remains strong with assets increasing 3% and liabilities declining 4.5% over fiscal year 2013.

She continued by sharing that student fees and scholarship allowances increased this fiscal year, there were declines in federal grants and significant increases in both IUPUI and IU Bloomington auxiliary revenues.

Regarding compensation and benefits, she said they both account for 65% of operating expenses and that they increased $68 million, or 4%, over the prior fiscal year. This included approximately $17 million in early retirement incentives and related termination payouts. She said that savings from that program are starting to be realized and benefit costs continue to be moderated due to changes in health care plans.

She continued that net non-operating revenues increased 8% over fiscal year 2013, to $800 million and investment income increased $48 million which was double of the 2013 income. In other revenues, capital appropriations of $26 million, compared to zero in 2013, also contributed to strong non-operating revenue growth.

She stated that the operating results include the impact of the Cyclotron and Proton Therapy Center closings. As of June, the university wrote off $12.6 million in receivables related to the sale of assets and services.

Trustee Shoulders commended the university for consistently receiving unqualified opinions from the State Board of Accounts.

Senior Vice President and CFO and Treasurer MaryFrances McCourt provided an annual report of IU’s eight institutional financial metrics representing four Moody’s strategic metrics and four KPMG metrics. She also noted that metrics were included relative to the performance of IU’s operating investment portfolio. She said that performance improved relative to the projected performance for current year metrics and she highlighted that balance sheet metrics remain strong while income statement metrics show some strain going out five years as operating margins compress.

Associate Vice President for Human Resources John Whelan sought support from the Board of Trustees to modify the name of one of IU’s retirement plans to avoid confusion with another similarly names plan. He stated that there were no substantive changes to the plan beyond the name change.

4. Report for the Facilities and Auxiliaries Committee

The committee heard a report from Associate Vice President for Capital Planning and Facilities John Lewis that included updates on major capital projects at IU Bloomington. Vice President Tom Morrison provided a repair and rehabilitation updated on the campus of IU Southeast. He stated that over $17.8 million has been spent for projects over the past four years which included qualified energy projects and deferred maintenance.

Vice President Morrison and Jim Schellinger, Chairman and CEO of CSO Architects, gave a presentation on the proposed design for the Assembly Hall renovation and requested approval per the Action Item noted in Appendix A.

Design approval per the Action Item in Appendix A was requested for campus housing expansion at IUPUI. Vice President Morrison, Gary Voirol, Vice President and Secretary of MSKTD & Associates, Inc., and Paul Wuennenberg, Principal with KWK Architects, provided an overview of the residence hall that will be completed in the summer of 2016.

Jeff Kaden, University Engineer and Director of Engineering Services, reported on IU’s energy management initiatives. He provided cost savings on qualified energy savings projects at IUN, IUK, IUS, IUSB and IUPUI and reported on energy monitoring and reduction strategies at IUB. Mr. Kaden continued with a review of thirteen LEED certified buildings on IU campuses. He said that IU has the highest number of LEED certified buildings in the Big 10 and that five additional buildings are in the review stage. He continued with considerations being given to renewable energy opportunities such as solar water heating and local wind turbines and future projects.

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