2010 President’s Report by University of Miami

2010 PRESIDENT’S REPORT

In what sometimes seems like ten minutes rather than ten years, the 21st century is more than a decade old. As it dawned, we were relieved that the Y2K issue had turned out to be no big deal—but we had no clue what was in store. 9/11 had not Message from the President

yet occurred, nor the wars in Iraq and Afghanistan. The Indian Ocean tsunami, the election of President Barack Obama, and the worldwide economic crisis were years in the future. Yet, in retrospect, it all raced by.

As the pace of events accelerates in our

globalized world, the problems they present demand ever more agile responses and out-ofthe-box solutions—just what we excel in here at the University of Miami. One of the nation’s most dynamic, diverse, and respected research universities, we emphasize multidisciplinary collaborations that transcend traditional academic boundaries. You might call it educational entrepreneurship: Of all our specialized programs, perhaps our most distinctive specialty is the unique way we put them together to address urgent issues. UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

2010 was not even two weeks old when UM’s can-do spirit,

the University made significant contributions to Haiti’s recovery

collaborative orientation, and commitment to the community

and long-term survival.

were called into service by the crisis in Haiti. A Miller School of

Medicine team led by Barth Green, chair of neurological surgery,

hosting of the third annual Clinton Global Initiative University

arrived in Port-au-Prince to begin caring for survivors less

(CGI U) this April was timely as well as exciting. More than 1,300

than 20 hours after the devastating January 12 earthquake. UM

students representing every state in the U.S. and 83 countries, as

Hospital in Haiti, a large, full-service field hospital, was erected

well as nearly 100 university presidents and 74 youth organiza-

in just over a week. UM also coordinated the work of thousands

tion leaders attended the event, which seeks to engage young

of volunteers and ultimately raised some $7 million to save lives

people in making commitments to address critical global issues.

and rekindle hope in Haiti.

Some 257 UM students were invited to participate, the largest

number from any host university in the event’s history.

Joining the effort were nurses from the School of Nursing

Coinciding with these varied humanitarian efforts, UM’s

and Health Studies and from UHealth and Jackson Health System;

Rosenstiel School of Marine and Atmospheric Science scientists

to another emergency, this one manmade: the disastrous oil spill

Just two days after CGI U concluded, UM began responding

who contributed expertise in seismologic monitoring and fore-

resulting from the April 20 explosion of the BP Deepwater Horizon

casting; and UM architects and engineers who studied how

drilling platform in the Gulf of Mexico. Scientists at UM’s Center

to help Haiti rebuild safely. Ultimately, virtually every school at

for Southeastern Tropical Advanced Remote Sensing worked with international satellite data providers to acquire critical images of the spill. Rosenstiel School research teams prepared hydrody-

2 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

namic models to examine its implications and studied its impact

programs, Jackson has faced major financial challenges this year.

on marine life. And UM’s research catamaran, the F. G. Walton

We are committed to its continued health and viability and are

Smith, hosted a two-week National Science Foundation-sponsored

working closely with Jackson leadership to identify and imple-

cruise during which scientists sampled submerged plumes near

ment solutions.

the well site.

cine and University of Miami Health System reflect our commit-

Even when we’re not pitching in on high-profile emergen-

The clinical programs offered by the Miller School of Medi-

cies, UM gives back to our neighbors and our world in count-

ment to leadership and excellence in health care as well as our

less ways. Our students contribute more than 70,000 volunteer

partnership with Jackson. For the seventh straight year, Bascom

hours to community projects each year. Our varied outreach

Palmer Eye Institute has been named the top eye hospital in the

activities are showcased in a recently launched section of the

country in the U.S.News & World Report 2010-11 “Best Hospitals”

University’s website called ’Canes in the Community.

annual survey. Three specialties at the University of Miami/

Jackson Memorial Medical Center were also ranked among

A community issue in which we are all stakeholders—health

care—was much in the public eye this year. Here at the University,

the nation’s best: Neurology and Neurosurgery; Ear, Nose and

we have long been at the forefront of fresh thinking in health

Throat; and Nephrology and Hypertension.

care, combining evidence-based treatments with an emphasis

on wellness and prevention. For more than half a century, one of

is the goal of the UM Life Science & Technology Park (LSTP).

our medical enterprise’s key partners has been Jackson Memorial

Developed by Wexford Science & Technology, the LSTP is a

Hospital. Home to many of our premier clinical and educational

collaborative effort among the Miller School, the College of

Harnessing innovative approaches to health and well-being

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Engineering, and community and private partners. It will house

cutting-edge basic and translational research while nurturing ben-

ogy graduate program was ranked 25th out of 210 such programs

make us stronger.

eficial new technologies and processes. The park also represents

nationwide, and the Department of Psychology was ranked 60th

significant opportunities for the historic Overtown community in

out of 241. Leonidas G. Bachas, a highly respected scientist with

moving ahead with selected infrastructure projects. The newest

which it is located. With its first phase slated for completion in

a strong background in education and administration, assumed

addition to the Gables campus—the 67,000-square-foot Robert

the summer of 2011, the new facility will be a beacon of scientific

leadership of the College of Arts and Sciences in July 2010. As

and Judi Prokop Newman Alumni Center, a spacious and inviting

innovation in South Florida and beyond.

dean of the University’s largest college, he will continue its trajec-

new “home away from home” for the ’Canes community—opened

UM’s scientific leadership was advanced this year by our

that facing and meeting these economic challenges will ultimately Because they will strengthen us in the long term, we are

tory of excellence while spearheading creative collaborations to

this fall. Improvements and expansions under way on the Gables

successful efforts to secure federal research funds made available

address global problems and prepare world-ready citizens.

campus also include the Cox Science Building Interdisciplinary

through the so-called “stimulus package”—the American Recov-

Neuroscience and Health Annex, a state-of-the-art hub of

ery and Reinvestment Act (ARRA). Thanks in great part to the

challenges. While our overall finances are stable, we are exer-

interdisciplinary research and biological imaging largely funded

outstanding efforts of UM’s Office of Research, our investigators

cising vigilance over our revenue and expenses to protect our

by federal stimulus dollars, and an addition to the Patti and Allan

have received more than $90 million in stimulus funds, placing us

core mission, operations, and greatest resource—our people.

Herbert Wellness Center, which will help this popular resource

14th in the nation among private research universities and 38th

Tuition revenue has, in fact, grown modestly, despite the

better meet the huge demand for its facilities. On the Rosenstiel

among all research universities. The funds contributed to a grand

smallest rate increase in recent history, and clinical revenues

School campus, plans are moving forward on a major new

total of some $330 million received for 2,700 externally spon-

at the Miller School are up double digits. I am pleased and proud

integrated seawater laboratory facility that will include the state-

sored research studies, led by 850 principal investigators at UM.

that we have managed our finances in ways that have allowed

of-the-art SUSTAIN laboratory—also funded by stimulus dollars—

us to continue to advance as an institution. I am also confident

for studying the effects of storms on built environments and a

Our distinguished scholars and educators, array of educa-

tional offerings, leading-edge research, and ever more accom-

The lingering economic downturn continues to pose fiscal

Marine Life Science Center.

plished and successful student body have all contributed to the

University’s continued rise in a variety of prestigious rankings.

difficult times is a source of deep gratitude. Our fundraising cash

The steadfast loyalty and support of our friends during

$138 million, up more than 56 percent from last year. Our steady stewardship of philanthropic funds is widely

In the 2011 edition of U.S.News & World Report’s “America’s Best

total for the fiscal year was close to $160 million, up 4 percent

recognized. In spring 2010, we were ranked number one in fund-

Colleges” rankings, the University ascended to 47th place, con-

from last year. Among many examples of outstanding generosity,

raising efficiency and fiscal excellence among more than 5,500 of

tinuing a meteoric rise that has seen UM climb 20 spots in nine

the Goizueta Foundation donated $2.4 million to the University

America’s largest charities by Charity Navigator. UM has earned

years and become the highest-ranked Florida school on the list.

of Miami to support a comprehensive University-wide plan that

the organization’s prestigious 4-star ranking ten years in a row.

The publication also ranked UM 48th in its “Great Schools, Great

will enhance and expand the reach of the Otto G. Richter

Prices” category.

Library’s Cuban Heritage Collection.

responded to this year’s events with anything like UM’s energy

and ingenuity. Perhaps the real take-home message here is that

4 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Within the College of Arts and Sciences, the clinical psychol-

In the 2011 edition of “America’s Best Graduate Schools”

The Barton G. Kids Hear Now Foundation announced a

I am certain that few academic institutions could have

published by U.S.News & World Report, the Miller School of

$5 million gift to the Miller School of Medicine’s Ear Institute.

learning and achievement come in an endless variety of forms, as

Medicine moved up four slots to the 47th position. The school’s

The Papanicolaou Corps, a loyal friend of our Sylvester Comp-

does the chance to make a positive difference in our world. As the

physical therapy program, consistently named among the nation’s

rehensive Cancer Center, recently announced a $3.2 million

future we all share unfolds ever more swiftly, our University will

top ten, was rated seventh. The School of Law is now ranked 60th

gift to fund vital cancer research at Sylvester. And The Launch

continue to meet its challenges and maximize its opportunities in

out of 188 schools; its tax law program, ranked in fifth place this

Pad, our resource dedi-cated to fostering entrepreneurship

often surprising, consistently inspired, and endlessly inspiring ways.

year, consistently ranks among the top ten. Further laurels

and innovation, garnered major gifts from both the Kaufmann

came from Parade magazine, which recently included UM in its

Foundation and the Blackstone Charitable Foundation. Overall,

Donna E. Shalala

“College A-List” of outstanding schools.

new commitments of $100,000 and up reached nearly

President

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

H E L P I N G S I LV E R U S E S I L I C O N

The use of powerful supercomputers to protect both

human health and the natural environment, ingenious

strategies to treat diabetes, new ways to help the

SUPERCHARGING SCIENTIFIC INQUIRIES

Information and communication

and Technology Enhancement

on a daily basis, such as health care

Capable of performing trillions of

technologies such as the Internet,

(CREATE), an NIH-funded multi-site

websites, telehealth technologies, or

calculations per second, power-

e-mail, and mobile phones are not

center coordinated at the University

the Internet for activities like bank-

ful computers are allowing teams

just the domain of the young. Accord-

of Miami. CREATE seeks to improve

ing, shopping, or finding information

of University of Miami scientists to

ing to Sara Czaja, a UM professor

the interface between elders and

about community resources,” Czaja

perform the next-generation genome

with joint appointments in the Miller

information technology so that they

explains. She and other UM research-

sequencing that will identify disease

School of Medicine’s Department of

can increase their access to services,

ers then develop interventions and

genes and unravel the mysteries

Psychiatry and Behavioral Sciences

maintain closer touch with family

educational programs that can help

behind illnesses such as diabetes,

and the College of Engineering,

and friends, and stay independent

seniors use these technologies.

cancer, and Alzheimer’s.

“Seniors are anxious to participate in

longer. As principal investigator of

the technology explosion. But they’re

CREATE, Czaja recently received

efforts. A study by Czaja and col-

tational resources that make it

looking for specific things that are

renewed funding of $9 million over

league Joseph Sharit, a professor

possible,” says Nick Tsinoremas,

not too complicated in design.’’

five years from the National Institute

of industrial engineering, found

director of UM’s Center for Computa-

Czaja is director and principal

Clearly there’s a need for such

“We now have the compu-

on Aging.

that elderly people who used Medi-

tional Science (CCS), which harnesses

investigator of the Center on

care’s website found it “confusing

computer power, applied math-

Research and Education for Aging

and technologies that people use

and overly complex.” She hopes to

ematics, and application sciences to

convince Medicare to make the site

address some of the world’s most

easier for older individuals to use.

difficult challenges, from improv-

As the study concluded, “To ensure

ing human health and monitoring

These images from a Rosenstiel School

that electronic health tools reach

climate change to finding alternative

simulation of the Gulf oil spill, created

their full potential, broad and inclu-

energy sources. In less than four

with a Center for Computational Science

sive input from consumers should

years, CCS has established more than

supercomputer, show a buoyant plume

serve as the basis for design.”

100 active collaborations, working

of crude oil and natural gas interacting

with researchers University-wide in

with surface currents.

“Our research focuses on tasks

elderly cope with an increasingly high-tech society:

UM investigators are partnering across disciplines

biology, chemistry, earth sciences,

to address some of the world’s toughest challenges.

6 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

engineering, medicine, physics, and

amounts of genomic data, helping

As director and principal investiga-

other disciplines.

Hussman Institute researchers unlock

tor of the Center on Research and

the mysteries of human disease.

Education for Aging and Technology

important CCS collaborations is with

Enhancement (CREATE), Sara Czaja

scientists from UM’s John P. Hussman

helping to mitigate the catastrophic

leads efforts to improve the interface

Institute for Human Genomics. The

Gulf oil spill, providing computational

One of the biggest and most

The CCS played a critical role in

between elders and information tech-

center’s 6,000 central processing

resources to UM’s Rosenstiel School

Research focusing on how information technology can be adapted to meet seniors’

nology to promote independence and

units, or CPUs, contain the necessary

of Marine and Atmospheric Science,

needs includes a study evaluating the usability of the Medicare website.

quality of life among older people.

computing power to analyze massive

whose researchers conducted

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

CAMOUFLAGING A CURE space, ensuring that they get the

get all the nutrients, and those on

with researcher Norma Sue Kenyon,

patients who receive islet cell trans-

nutrients they need to survive.

the inside begin to die,” Stabler

the Martin Kleiman Professor of Sur-

plants to achieve insulin indepen-

explains. So the scaffolds she and her

gery, Medicine, Microbiology and Im-

computer simulations and hydrody-

Improving outcomes for diabetic

namic modeling to determine the path and potential impact of the oil.

“I like to say that islet cells are

dence is the goal of biomedical

like super-athletes,” says Stabler, an

team are developing will distribute

munology, and Biomedical Engineering

ogy project of Miller School of Medi-

engineer Cherie Stabler’s research.

assistant professor of biomedical en-

the islets more evenly, providing

and co-director of the DRI’s Executive

cine’s researchers Vance Lemmon and

The cells, which are harvested from

gineering and director of the tissue

mechanical protection in a nutrient-

Research Council, to grow mesenchy-

Stephan Schuerer is moving forward

the pancreas of a donor and trans-

engineering program at the Diabetes

rich environment. The scaffolds that

mal stem cells on the surface of the

with computational support from

planted into a patient with diabetes,

Research Institute. “They have a high

house the islets look and act a lot

biomaterial that coats the islets.

CCS. The project seeks to describe

come under attack from the recipi-

nutrient demand.”

like kitchen sponges, absorbing the

the hundreds of different assays used

ent’s immune system, necessitating

right amount of fluids, or nutrients,

to be able to modulate the immune

to study how perturbing agents such

the need to give patients powerful

the skin, the cells tend to cluster,

while maintaining their stability.

system in a good way,” Stabler ex-

as drugs alter cell function, enabling

immunosuppressant drugs that leave

competing with each other for nour-

plains. “We’ve found that these cells

scientists to more effectively identify

them open to infections.

ishment. “The islets on the outside

folding strategy even further, working

and prioritize chemicals for further

development into chemical probes

ing this is to coat the transplanted

sional protective ‘bubble’ that may

or starting points for therapeutics.

islet cells with biomaterials, cam-

help minimize immune rejection of

ouflaging them from the body’s im-

the islets.”

include continued computational

mune system. Now, she is augment-

support for the climate change

ing her method with a new strategy:

her collaboration with Kenyon, she

sive record of public service. In high school he organized efforts to provide personal items and

research of Ben Kirtman, a

creating biomaterial scaffolds that

and her team have been able to get

other supplies needed by U.S. soldiers in Afghanistan and assist victims of the Indian Ocean

professor of meteorology

will house islets in three-dimensional

diabetic animals off insulin using this

tsunami and Hurricane Katrina. As a sophomore at UM, he co-chaired the University’s inau-

and physical oceanography

technique: “Our ultimate goal is to

gural Miami Poverty Conference. A week before the event, he presented a plan to coordinate

who directs the center’s

move this technology to clinical trials.”

homeless-shelter volunteer efforts by UM students at the second Clinton Global Initiative Uni-

The NIH-funded bioassay ontol-

Other CCS collaborations

Stabler’s strategy for overcom-

When transplanted just under

Stabler also has taken her scaf-

“Mesenchymal stem cells seem

grow very well on our biomaterial scaffolding, creating a three-dimen-

Stabler notes that, through

I N T E R D I S C I P L I N A R Y A DVO C AT E Although he’s just entered medical school, Kartik Telukuntla has already racked up an impres-

program in physical sci-

Miller School of Medicine professor

versity (CGI U). He served as a project leader at the third CGI U, held at UM last April.

ences and engineering;

Vance Lemmon is involved in studies

the Translational Research

that include a Miami Project to Cure

In pursuit of biomaterials that will

to be part of such an accomplished group of students,” he says. “It forced me to think more

Information Exchange, a

Paralysis-funded search for genes that

protect transplanted islet cells from

about what I want to accomplish.”

collaborative project with

can help neurons regenerate and a bio-

immune system rejection while allow-

the Miller School; and ongo-

assay ontology project that examines

ing them vital nourishment, biomedi-

justice of the Student Government Association and president of the Honor Council. A member

ing work with the Rosenstiel

how agents such as drugs alter cell

cal engineer Cherie Stabler takes a

of the President’s 100, Iron Arrow, and Phi Beta Kappa, he completed the Medical Scholars

School’s Cooperative Institute for

function. Technical support from the

multidisciplinary approach. “When

program with honors.

Marine and Atmospheric Studies

Center for Computational Science, he

you start putting all these minds

to define cyber-infrastructure for

says, allows his teams to do work of

together,” she says, “is when you

issues. “I see political science as an avenue to apply medical science on a larger scale,” he says.

all of its projects.

“unprecedented sophistication.”

come up with something novel.”

“The best way to tackle a problem is to inspire more people to join you.”

8 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Last fall, Telukuntla was a finalist for a prestigious Rhodes Scholarship. “It was an honor

As an undergraduate, Telukuntla delved into political science courses and served as chief

Now studying at the Miller School of Medicine, Telukuntla plans to focus on health policy

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

PROPELLING PROTEOMICS

Garnering nearly $93 million in federal “stimulus”

funds granted via the American Recovery and

many seek solutions to some of the world’s most

urgent medical and environmental issues.

10 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

grant, Akira Chiba hopes to begin

to the new science of ‘isPIN’ (in situ

doing for proteomics—the study

studies of protein-protein interac-

of proteins—what sequencing the

tion networks). Chiba and his team

human genome did for genomics.

have shown that the approach works;

Chiba, a professor in the Department

the two-year NIH award will support

of Biology, and his colleagues have

work to demonstrate the technique’s expandability.

make it possible: a photon-based

Rosenstiel School professor Peter Swart and graduate student Ben Galfond, B.S. ’09,

fluorescence microscope designed

ing the first map of protein-protein

test a device used for monitoring carbon dioxide levels above underground

specifically to visualize the interac-

interaction networks in the brain;

storage sites.

tions of living proteins.

UM’s Center for Computational Sci-

This scanning electron microgram

The highly specialized new

ence is set to provide memory space

shows the beginning of a synapse in

equipment makes it possible to view

and assist in data analysis. The isPIN

a fruit fly. A human brain is believed

such interactions within the cells of

project, says Chiba, is “sure to shed

to have more than a trillion synapses,

new light on the dynamics of the

dynamically created and eliminated

molecules of life.”

throughout life.

C O N T R O L L I N G G L O B A L WA R M I N G

research projects. Like the examples profiled here,

before. The advance opens the door

designed a powerful new tool to help

Reinvestment Act (ARRA), University of Miami

investigators have embarked on more than 100

With a $2.6 million NIH stimulus

Trapping harmful gases in a bottle,

Atmospheric Science. The U.S. govern-

living animals much faster and in

then putting it away so they won’t

ment has given Swart and his colleagues

far greater detail than ever

poison the air, might sound like a

$2 million—including $300,000 in

simplistic approach to fighting pol-

stimulus funding—to find out.

Chiba’s lab is currently creat-

ENHANCING AIDS PREVENTION

lution. But that’s exactly the premise

behind carbon sequestration—a

doctoral students to determine

means of capturing carbon dioxide

whether carbon dioxide is leaking

After someone tests positive for HIV,

find the answer. Her $12.3 million

from sources such as fossil fuel

from the ground or staying put at

counseling is typically offered as

grant, shared with the San Francisco

power plants, converting it to a

Department of Energy sites around

liquid, and storing it underground.

the country. His project teammates

The gas is thus, in theory, kept out

include fellow Rosenstiel School

of the atmosphere so that it won’t

scientists Tim Dixon, Falk Amelung,

contribute to global warming.

Guoqing Lin, and Dan Riemer.

“We’re not really sure exactly

Swart is training a group of

A study integrating so many

both a first step to initiate medical

Department of Health, is examining

Akira Chiba, a professor

care and as a strategy to reduce the

the effectiveness of HIV prevention

of development and neurosci-

patient’s risky behavior. But whether

counseling at nine clinics around

counseling can help those who test

the country.

ence, uses a sophisticated

negative for the virus remains an

proteins as they bind and signal to

open question.

most people will not have an HIVpositive test,” says Metsch. “For the

photon-based microscope to study

Lisa Metsch, a Miller School of

“We need to recognize that

what happens to carbon dioxide when

different technologies, from seismom-

each other within the intact brains of

it gets pumped in the ground,” says

eters to synthetic aperture radar, to

fruit flies. He and his colleagues hope

Medicine professor of epidemiol-

people who get a negative test, is

Peter Swart, professor and chair of

gauge the effectiveness of carbon

to create a map of protein interactions

ogy and public health who studies

there value in also doing counseling?

marine geology and geophysics at

capture has never been done before:

that could guide the way to as-yet-

HIV prevention, has embarked on a

That’s why this study is needed.”

the Rosenstiel School of Marine and

“This is new territory,” Swart says.

unimagined medical interventions.

two-year stimulus-backed study to

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

S U S TA I N I N G L I F E A N D P R O P E R T Y

MENDING BODY TISSUE S

IMAGING THE NERVOUS SYSTEM

Hurricanes are the costliest natu-

force winds in a 3-D test environment,

University of Miami biomedical

One of the challenges to understand-

ral disasters that strike the United

SUSTAIN will offer the capability to

engineer Weiyong Gu is working

ing human emotions, cognition, and

signed to build on these advances.

States—and as more and more

model entire segments of coastal

long hours in his lab to build an

neurological disorders is linking

Americans gravitate toward the

communities, so engineers can study

instrument that could help pave the

changes in brain cell function to

37,700-square-foot addition to the

coasts, their negative impacts will

changes in the way buildings are

way for advanced techniques in the

changes in subjective experiences

Cox Science Center, scientists from

only rise. A $15 million ARRA grant

designed and constructed.

engineering of human tissue.

and observable behaviors. The ability

the College of Arts and Sciences and

from the National Institute of Stan-

to track nerve cell activity and make

Miller School of Medicine will con-

dards and Technology (NIST) of the

SUSTAIN is part of an integrated

and colleague Charles Huang, an

real-time connections to human

duct interdisciplinary studies based

seawater laboratory building that will

assistant professor of biomedical

behavior is revolutionizing the

on neurological imaging and health

house a state-of-the-art Marine Life

engineering, are working could make

way scientists and physicians study

research, accelerating the pace of

Science Center. The center, which will

it possible to monitor the electrical,

the brain. UM’s new Neuroscience

discovery in neurological processes

focus on coral reef research, will also

chemical, and mechanical charac-

and Health Annex, which received

and related diseases.

be home to fisheries and biologi-

teristics of engineered tissue and

cal oceanography research, as well

predict its growth and other traits

as collaborative studies probing the

without having to remove it from the

complex connections between the

device—something that can’t be done

oceans and human health.

with current bioreactors.

“Music has always been part of my life,” says brass player Katie Silliman, who has performed

in school bands since sixth grade. “I wasn’t ready to be done with it.” As a UM freshman last

Slated to be completed in 2012,

Says SUSTAIN principal investiga-

The bioreactor on which Gu

$14.8 million in ARRA funds, is deWithin this state-of-the-art,

A F I N E -T U N E D P L A N

The two College of Engineer-

tor Brian Haus, associate professor of

ing researchers, their work funded

year, she was accepted as a tuba player in the Frost School of Music’s Symphonic Winds and a

applied marine physics and director

by an ARRA grant of $735,000 from

bass trombonist in one of its three jazz bands.

The wind-wave-storm surge stimula-

of UM’s Air-Sea Interaction Saltwater

the National Institute of Biomedical

tor, a component of the Rosenstiel

Facility, “This building will help us

Imaging and Bioengineering, hope to

since age 9 that she’s destined to be a marine scientist—which is why she’s juggling majors in

School’s new SUSTAIN facility, gener-

better understand and protect our

have a prototype of the instrument

biology, marine science, and music.

ates hurricane-force winds in a 3-D

coastal communities and ecosystems.”

ready and tested within two years.

“Imagine using engineered tissue

Silliman is in her second year as lab assistant to Carla Hurt, a research assistant professor

test environment.

While making music floats her boat, the New York-born Texas transplant also has known

One of 30 students nationwide awarded a prestigious Singer Scholarship by UM in 2009,

to replace diseased or damaged or-

in the College of Arts and Sciences who is conducting genetic studies of anemone shrimp.

U.S. Department of Commerce sup-

The Rosenstiel School’s Brian Haus,

gans,” Gu says. “That’s the potential

Extracting and sequencing the DNA of the marine invertebrates is, Silliman admits, “smelly,”

ports construction of the Rosenstiel

principal investigator of the SUSTAIN

of this work.”

but helps answer questions about how ecological changes affect biodiversity. Not only will

School’s 8,520-square-foot, state-of-

laboratory initiative, notes that

the-art Surge-Structure-Atmosphere

“developing a more complete under-

Featuring revolutionary technologies allowing scientists to connect nerve cell

encouraged her to start her own research project.

Interaction (SUSTAIN) laboratory.

standing of our environment and its

activity with human behavior in real time, the Neuroscience and Health Annex at

The only facility in the world

she receive credit in an upcoming scientific publication of Hurt’s, Silliman says her mentor has Active in tae kwon do, scuba club, and the marine studies honor society Rho Rho Rho,

weather, as well as their effects on

the Cox Science Center will accelerate the pace of discovery in neurological

Silliman also works as a dorm security assistant to raise funds for study abroad on Australia’s

with a wind-wave-storm surge simu-

structures, ecosystems, and human

processes and related diseases.

Great Barrier Reef. UM, she says, is a great location “for hands-on work in marine science” and

lator that can generate hurricane-

health, is essential.”

1 2 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

“to make friends from around the country and the world.”

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Contemporary issues don’t fit neatly into academic

disciplines; neither do effective solutions. UM is

responding with a growing array of multidisciplinary

DISCIPLINED DEVELOPMENT

PURSUING CANCER’S SECRETS

Real estate is big business in South

Cancer remains a highly complex,

ogy at the Miller School of Medicine.

Florida, so it make sense that the

elusive disease that demands the

Burnstein oversees a curriculum that

University of Miami lead the way in

most novel diagnostic and treatment

strives to integrate students into the

preparing students for success in

approaches. The Sylvester Compre-

extensive clinical and translational

this dynamic industry. The School

hensive Cancer Center’s Sheila and

research programs of the Sylvester

of Architecture is doing its part by

David Fuente Graduate Program

Comprehensive Cancer Center while

launching an interdisciplinary Master

in Cancer Biology teaches the next

reinforcing the interrelationships

of Real Estate Development and

generation of cancer researchers to

of basic biological discoveries and

Urbanism (MRED+U) program.

integrate the most advanced con-

clinical applications.

cepts and techniques in molecular

world-class curriculum and expertise

The MRED+U combines its

and cell biology, biochemistry, genet-

mentoring system provides graduate

in livable community planning with

ics, genomics, proteomics, animal

students with unique and valuable

strengths of real estate programs in

models, and biostatistics in the quest

training,” says Burnstein. “This dual

the School of Business Administra-

for more accurate diagnostic strate-

mentoring has the added benefit of

tion and School of Law. As cities are

gies and improved therapeutics.

increasing interactions among

faculty scientists and clinicians,

increasingly taxed by traffic, water

programs that prepare students for real-world

leadership in fields ranging from the built

environment to cancer biology.

14 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

This innovative doctoral train-

“The program’s two-tiered

scarcity, rising energy prices, and a

The School of Architecture’s MRED+U

ing environment. The program has

ing program enables students to

which is a strong impetus

paralyzing credit crisis, this multidis-

Program, led by professor Charles

drawn applications from throughout

interface with basic scientists, clinical

for University-wide transla-

ciplinary program provides a holistic

Bohl, provides students with a

the United States (including Hawaii),

cancer researchers, and physicians

tional research efforts.”

approach to modern challenges.

multidisciplinary perspective on

South America, and the Caribbean

throughout the University as they

developing the built environment

as well as India, Saudi Arabia, South

design and conduct multidisciplinary

practices in real estate finance,

to optimize both economic outcomes

Korea, and China.

research projects. Students select

market analysis, real estate law,

and human well-being.

both a research mentor to guide

Students learn cutting-edge

land use policies, project manage-

Such widespread interest is

natural, says MRED+U program

them in basic science and trans-

ment, public-private partnerships,

These charrettes challenge students

director Charles Bohl, considering

lational investigation as well as a

Kerry Burnstein, a professor

the development process, sustain-

to balance the desires of the market,

the dramatic social, economic, and

physician mentor who exposes them

of molecular and cellular phar-

able development practices, and

residents, government leaders,

demographic trends that are shifting

to the challenges of clinical cancer

macology, leads the Sheila and

entrepreneurship. Graduate students

community stakeholders, and

the industry toward a new paradigm

care and unmet research needs.

David Fuente Graduate Program in

and faculty in real estate, business,

financial interests while devising

combining livable community design

law, architecture, and urban design

a development plan.

and sustainable urban development.

Kerry Burnstein, a professor of

hensive Cancer Center. The program

collaborate on case studies, team

The MRED+U program, he notes, “is

molecular and cellular pharmacol-

enables doctoral students to interface

projects, competitions, and capstone

program bring diverse academic

perfectly poised to prepare the next

with scientists, researchers, and physi-

charrettes—combined development

backgrounds and work experience,

generation of entrepreneurs to make

cians in multidisciplinary projects that

and community design studios.

enriching the interdisciplinary learn-

those communities a reality.”

span basic and translational research.

Students in the MRED+U

The program is directed by

Cancer Biology at Sylvester Compre-

‘CLAS’ ACT

E N T E R TA I N I N G A M B I T I O N S

Home to both undergraduate and

lectures, workshops, visiting scholar-

Staying afloat in today’s music busi-

master’s degree programs in Latin

ships, and studies. In August 2010,

ness requires finding creative ways to

American Studies, the Center for

noted scholar Ariel C. Armony took

ride the digital wave that ushered in

Latin American Studies (CLAS) also

over leadership of the center from

the age of online downloading. The

offers an innovative dual B.A./M.A.

longtime director Steven Stein.

Frost School of Music’s Music Business

honors degree. Just as crucial as

and Entertainment Industries (MBEI)

its degree programs are varied

calendar of events included a confer-

program, led by associate professor

interdisciplinary activities that link

ence uniting living playwrights from

Rey Sanchez, B.M. ’80, M.M. ’82, is one

faculty in the College of Arts and

1960s Cuba, which was video-

of the few programs designed specifi-

Sciences with those from schools

streamed live; a screening of Which

cally to prepare students for the pub-

including Architecture, Communica-

Way Home, a documentary about

lishing, protection, and administration

tion, and Marine and Atmospheric

unaccompanied immigrant children

of intellectual property in this rapidly

Science. Also in the mix are visitors

in South Florida; presentations on

changing industry.

from Latin America and other parts

spiritual tourism in Peru and the

of the world who participate in guest

Argentine wine industry; and discus-

teamed with the UM School of Law

sions of social issues and logisti-

to design the first-ever joint-degree

Associate professor Rey Sanchez, chair

either negotiating them or draft-

cal challenges in post-earthquake

program in law and music business,

of the Department of Music Media and

ing them, being a lawyer helps you

Orlando native Michael Kaplan was originally drawn to UM by the diverse learning opportuni-

Haiti. Through the center’s summer

a unique opportunity for aspiring en-

Industry at the Frost School, helped

understand the nuances and legal

ties offered through the University’s prestigious Foote Fellows Program. Soon busy with activi-

grant program, graduate students

tertainment attorneys. The J.D./M.M.

develop the J.D./M.M. curriculum.

ramifications of particular contract

ties ranging from Model UN to running the scoreboard at volleyball games, he found himself

conduct on-site research into topics

in Music Business and Entertainment

language,” Elton says. “Our gradu-

especially intrigued by a freshman seminar known as Books That Matter. Designed for the

of interest ranging from 19th-century

Industries welcomed its first students

lege record companies. Elton went

ates will be well prepared to enter

Foote Fellows by William Scott Green, senior vice provost and dean of undergraduate educa-

Afro-Cuban politics to the evolution

in fall 2010, offering them the ability

on to earn a J.D. from Brooklyn Law

this rapidly changing field.”

tion, and John Paul Russo, professor of English and classics, the course invites faculty mem-

of Colombian saxophone music.

to complete both degrees in three

School and served as vice president

bers to discuss a nonfiction work of personal significance.

Last spring the center’s lively

More ambitious initiatives are

This year the MBEI program

ECLECTIC ACHIEVEMENTS

years, including two summers of

of mechanical licensing and reper-

in the works with the creation of the

coursework. Graduates are prepared

toire data services at EMI Recorded

spring 2009. The resulting program, ULecture, has chalked up more than 25 faculty presenta-

The seminar’s heady intellectual brew inspired Kaplan to take its concept campus-wide in

Miami Consortium for Latin Ameri-

to offer legal services in arts and

Music before returning to UM as a

Serona Elton directs the J.D./M.M. in

tions to date, including one on health care last February with President Donna E. Shalala.

“Protagonistas de los 60,” a March

can and Caribbean Studies. The new

entertainment, as well as in more

faculty member. She is a consultant

Music Business and Entertainment

2010 conference cohosted by the

collaboration between CLAS and the

general fields such as antitrust, busi-

for Sony Music Entertainment and

Industries, the nation’s first-ever joint-

minor in theater, sport administration, and business law, has served (among other things) as

Center for Latin American Studies

Latin American and Caribbean Center

ness associations, commercial law,

several other music industry clients,

degree program in law and music busi-

the 2009-10 Student Government Senator of the Year, a College of Arts and Sciences senator,

and FIU’s Cuban Research Institute,

(LACC) at Florida International Uni-

intellectual property, tax, and torts.

a specialization that enables her to

ness. “So much of the music industry

and chair of the UM Student Government Academic Affairs Committee. He also leads campus

brought together noted Cuban play-

versity has been designated a Title VI

provide conceptual and practical

is based on contractual relationships,”

tours for prospective students, performs with UM’s Just Kidding improv comedy troupe, and

wrights for the first time in more than

National Resource Center (NRC) for

by Serona Elton, M.M. ’95, who as a

insight to the program.

she says. “Understanding those

participates on the Model UN traveling team.

40 years to explore a unique decade

Latin America by the U.S. Depart-

student cofounded ’Cane Records,

nuances is key to negotiating and

in Cuban theater.

ment of Education.

one of the first self-sustaining col-

ing with contractual arrangements,

crafting deals.”

could take my education and make it my own. And I knew it was the right decision.”

16 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

The program was spearheaded

“If you’re going to be work-

Kaplan, who is balancing a double major in history and political science with a triple

“I came to UM because I wanted the freedom to choose,” he recalls. “The University said I

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

LEGAL LIFELINE Just ten days after the devastating

service because it enables those who

earthquake in Haiti, UM law students

are here the opportunity to work

were helping Haitians living in

and send money back to Haiti,”

South Florida to file for Temporary

Newman says.

Protected Status (TPS), which allows

them to live and work legally in the

spawned a comprehensive training

U.S. In March, 52 law students from

and processing model that may be

eight universities across the nation,

deployed at any legal service institu-

including Yale and Stanford, came to

tion or law school clinic. They also gar-

Miller School of Medicine teams built

Miami for alternative spring breaks

nered national recognition, including

the well-equipped, 25,000-square-

to pitch in.

the prestigious Clinical Legal Education Association’s Award for Excellence in a

Within a day of the devastating January 12 earthquake

in Haiti, Miller School of Medicine teams began

arriving in Port-au-Prince to save the lives of critically

injured survivors. In the months since, UM faculty,

staff, students, and alumni have continued to provide

a diverse array of urgently needed services to help

Haiti recover and rebuild.

18 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

MEDICAL MIRACLES The first wave of doctors landed at

been helping to bring health care to

foot, 240-bed University of Miami

Port-au-Prince’s ruined airport the

the people of Haiti since 1994. He

Hospital in Haiti in just over a week.

make sure people don’t become mar-

day after the earthquake with garbage

and his colleagues, including several

ginalized,” says Nneka Utti, 23, who

bags full of sutures, antibiotics, and

members of the UM Global Institute

munity members who included

participated in the TPS effort.

pected before we started this effort,”

wound dressings—whatever they could

for Community Health and Develop-

longtime Miller School supporters

Newman says. “TPS does help Haiti.

grab before their flight. Nothing could

ment, were quickly at the forefront

and University trustees, as well as

can’t safely return to their home-

Lawyers can help Haiti. We can be

prepare them for the chaos and heart-

of the global medical response to the

generous philanthropic support that

lands because of armed conflict,

first responders in a way.”

break they encountered.

ravaged country, treating thousands of

reached nearly $7 million, the school

natural disaster, or other life-

As co-founder of the humanitar-

“I see this as an opportunity to

The school’s TPS activities

TPS gives foreign nationals who

severely injured survivors.

also spearheaded an astounding

threatening conditions 18 months

ian effort Project Medishare, Barth

feat, building a well-equipped,

of amnesty to live and work in the

Green, professor and chair of the

efforts on behalf of Haiti also ranged

air-conditioned, 240-bed hospital

United States.

Miller School of Medicine’s Depart-

from the nearly instant creation of

housed in four tents in just over a

ment of Neurological Surgery, had

a Miami-based command center

week after the quake. Some 1,500

Newman, who directs the Health

that moved mountains to transport

medical personnel from the UM

and Elder Law Clinic, knew that

The Miller School’s multifaceted

Public Interest Case or Project. “We know now what we sus-

Associate professor JoNel

people and equipment to a nation in

community and beyond—nearly every

many in Miami’s large Haitian com-

The Miller School’s Barth Green, a

complete meltdown to a ham radio

U.S. state and several countries—

munity would need help completing

leader of efforts to improve health

station that made it possible to relay

ultimately volunteered for shifts at

the complicated TPS application and

care in Haiti for more than 16 years,

lifesaving information about supplies

the hospital. Plans are under way to

coming up with the $470 processing

UM law students, joined by students

was in Haiti the day after the Janu-

and patients when more modern

transform Haiti’s health care system

fee and other affiliated costs in time

from leading law schools around the

ary 12 earthquake, spearheading the

communications media were no

and to create a national trauma sys-

for the filing deadline. “The Haitian

U.S., helped Haitians living in South

coordination and delivery of urgently

longer functioning.

tem, made possible in large part by

TPS Project provides a valuable

Florida to file for Temporary Protected

needed medical services for thousands

the efforts of Project Medishare and

Status in an effort that garnered

of grievously wounded survivors.

assistance from prominent com-

the UM Global Institute.

national recognition.

With extraordinary logistical

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

L O O K I N G T O WA R D T H E F U T U R E

TRANSCENDING TURMOIL

A team of University of Miami geolo-

Haitian-born anthropology profes-

gists says there’s a high probability for another destructive tremblor in

throughout the provinces is one way

the States, Kramer began transport-

to rebuild the nation’s intellectual

ing supplies and patients through her

infrastructure.

nonprofit organization SOIL (Sustain-

sor Louis Herns Marcelin was in

able Organic Integrated Livelihoods).

Haiti with students such as Kristina

turer Yves Colon took a two-month

Haiti’s not-too-distant future. Using

Rosales (see profile on facing page)

leave from the University to work

and UM associate professor Guerda

optical data and satellite imagery,

when the earthquake hit. In March

with Internews, a media develop-

Nicolas, who lost family members to

the geologists discovered a buildup

the Center for Latin American Stud-

ment organization serving poor and

the quake, has worked with colleagues

of seismologic stress beneath the

ies invited Marcelin, chair of the

disaster-stricken countries. Colon

in epidemiology and nursing to coor-

island’s surface that could trigger

Interuniversity Institute for Research

was the only Creole-speaking editor

dinate disaster-related mental health

another quake.

and Development (INURED), to lead a

on the group’s Port-au-Prince team,

assessments and trainings as well as

School of Communication lec-

Haitian-born clinical psychologist

Tim Dixon, a professor of

discussion on the Coral Gables cam-

which created daily 10- to 15-min-

counseling services in Miami’s large

marine geology and geophysics at

pus about the pulverization of Haiti’s

ute newscasts burned onto CDs and

Haitian community and in Haiti.

the Rosenstiel School of Marine and

already fractured education system.

rushed by motorcycle to 25 local

The cultural traditions of her native

Atmospheric Science, has urged

radio stations. “I wanted to do some-

country, she has written, are “the

A report conducted by INURED,

L A V I DA I N T E R N AT I O N A L

the Haitian government to rebuild

Rosenstiel School professor Tim Dixon

composed of faculty from UM and

thing that would be useful,” he says.

roots that continue to sustain Haiti

critical parts of its infrastructure

spearheaded efforts to analyze seismic

more than 35 other universities

and that allow it to flourish in the

away from the danger zone. Partici-

data from the January quake to help

assisted by students from the Haitian

knowledge inspired the School of

pating in efforts to find feasible sites

identify safer locations for rebuilding

Education & Leadership Program,

Communication, which launched

Central America, and Washington, D.C., by age 14. “I love the international lifestyle,” says

is Dixon’s colleague Falk Amelung,

critical components of Haiti’s

estimates that 121 to 200 profes-

kozeayiti.org this past April. A vol-

Rosales, who speaks Portuguese, Spanish, and Russian, with conversational knowledge of

the task leader of a GEO (Group on

infrastructure.

sors and anywhere from 2,599 to

unteer effort of faculty, staff, alumni,

French and Creole.

6,000 students in higher education

students, and members of the Haitian

perished. Marcelin says that estab-

diaspora, the bilingual (English/Cre-

UM, in addition to majoring in international studies and political science and minoring in Latin

lishing standardized learning centers

ole) initiative, allows “young Haitian

American studies and economics, Rosales interned at the Center for Hemispheric Policy, took

media makers and journalists to

part in Get Out the Vote, joined the national leadership honor society Omicron Delta Kappa,

Earth Observations) Supersite that provides scientists with satellite

data about seismic measurements

nations pledged an estimated

in Haiti.

$5.2 billion toward Haiti’s recovery

during a donors conference in New

At a collaborative charette that

Just days before a group of

The desire to open portals of

midst of the storms.”

Born to Russian-Panamanian parents, Kristina Rosales, A.B. ’10, had lived in Eastern Europe,

That made the University of Miami, with its global orientation, a natural draw. While at

develop and distribute stories

and earned three prestigious prizes, including a Fulbright Award.

UM hosted in March at the request of

York, the charrette’s 12 design teams

The School of Education’s Guerda

through its website to media in

Haiti’s Commission on Planning and

presented ideas ranging from build-

Nicolas, a native of Haiti who lost

Haiti and the world.”

herself is a survivor of the catastrophe, which occurred when she was taking an intersession

Reconstruction, attendees sketched

ing civic spaces such as churches,

family members in the January earth-

course in Cite Soleil. A Haitian youth initiative that Rosales helped develop was one of just

the outlines of roads, houses, hospi-

clinics, and community centers to

quake, helped to coordinate disaster-

studies adjunct professor and visit-

13 projects—out of some 250 submitted by UM students—that received seed money from the

tals, and schools, partnering with UM

restoring Port-au-Prince’s historic

related mental health assessments,

ing scholar at UM’s Center for Latin

University for the Clinton Global Initiative University hosted by UM in April.

faculty and students on a recovery

district. After soliciting feedback

trainings, and counseling services in

American Studies, was teaching

School of Communication lecturer

plan for their nation. “There’s an

about the proposals from residents

Haiti and in Miami’s Haitian com-

about sustainable development chal-

Yves Colon spent two months in Haiti

young people in Rio de Janeiro’s slums; through her Fulbright, she is currently conducting nine

urgency in what’s being done here,”

throughout Haiti, government

munity. The nation’s deep cultural

lenges in Haiti when the earthquake

working with international media or-

months of independent research in Brazil. She’ll then attend Columbia University’s social and

explained School of Architecture

officials will return to UM with

traditions, she has written, allow it to

hit. Once her students returned to

ganization Internews to mentor young

urban studies graduate program before pursuing her foreign service career. What keeps her

Dean Elizabeth Plater-Zyberk.

potential projects needing design.

“flourish in the midst of the storms.”

journalists and create daily newscasts.

going? The answer, she says, is simple: “I’m just a very curious and ambitious individual.”

20 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Sasha Kramer, international

Rosales has been a passionate advocate for victims of Haiti’s devastating earthquake; she

It was through her experiences in Haiti that Rosales learned of the problems faced by

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

FAC I L I TAT I N G D I V E R S E D I A L O G U E S

Amid our world’s ever-increasing pace and complexity,

humanistic studies provide a vital framework to help

transmute information into understanding. At UM,

C R E AT I V E C R O S S - F E R T I L I Z AT I O N

This year marked the introduction of

ined works in and about the Atlantic

provides “the necessary contexts for

Can an elusive idea be conveyed with

a new, essential resource for nurtur-

world through the mid-19th century,

us to arrive at a more informed under-

Legos? Can a concept be carved out

ing scholarly collaboration in the hu-

featured panelists from institutions

standing of issues we face in the con-

of a block of wood? Last fall, biology

manities and enriching the region’s

including the University of Wisconsin-

temporary world.” Strong attendance

professor Keith Waddington debuted

intellectual culture. The first of its

Madison, McGill University, the

at the center’s inaugural events—from

a new class designed to encourage

kind in South Florida, the Center for

University of Virginia, and Ohio State

members of the general public and

students to explore the techniques

the Humanities in the College of Arts

University as well as from UM. In

faculty to students from colleges

of both liberal arts and the scientific

and Sciences offers a dynamic slate

April, the Trans Global/Global Trans

throughout Florida—demonstrates

method, seeking a creative cross-

of programming accessible to the

symposium convened some of the

the ability of the center to foster

fertilization that would spawn wholly

public, both on campus and online.

nation’s top leaders in the field of

constructive dialogue on important

new processes and projects.

gender studies to explore global

topics among people who might not

workshops are among the activities

perspectives on the formation of

otherwise interact.

ArtScience, the course is designed

that unite UM faculty from differ-

gender and sexual identity.

“to bring together students from

ent disciplines with groundbreak-

ence sets it apart from the 200-plus

the humanities and sciences, with

ing interdisciplinary scholars from

director and professor of English

centers of its kind around the world.

the hope that they see where their

Opportunities for collaborative cross-

around the world. February’s Atlantic

Mihoko Suzuki, demonstrate how

Its website (www.humanities.miami.

approaches are different and where

fertilization between art and science

Narratives symposium, which exam-

scholarship in humanities disciplines

edu) includes features like Insight

they overlap,” says Waddington.

are explored in biology professor Keith

Tracks—video commentary from

“I give them unique topics and get

Waddington’s ArtScience class. In one

UM professors on upcoming events

them to think really creatively, using

assignment, students build islands

in collaboration with area arts

art and science alike.”

from materials such as Legos, then

organizations—and BookTalk, which

measure the density of their creations’

provides discussion by faculty who

scientist and an artist; with wife Mindy

are publishing new work. Visitors

Nelson, he has hosted creativity-

to the interactive site can also catch

based salons, where some aspects of

the results. In another, students

archived video from lectures and

the new course were developed. In

built and populated fanciful islands,

symposia.

addition to readings and discussions

then took scientific measurements

about interdisciplinary endeavors,

of the creatures they’d created. “It

Symposia, lectures, and

Symposia like these, says center

high-tech tools and scientific perspectives complement

lively intellectual inquiry that engages with contem-

The center’s robust online pres-

porary issues while expanding the possibilities

of human endeavor.

22 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Called, appropriately enough,

Waddington himself is both a

plant and animal life.

students are assigned to explore the

was interesting to contrast the col-

According to Mihoko Suzuki, director

scientific method’s ability to help

laborative outcomes with how we

of the recently launched Center for the

solve unconventional problems in

solved problems initially,” recalls

Humanities, one of the center’s aims

the arts.

architecture major Michael O’Neil. “We learned how important art and

Opening festivities for the Center for the Humanities included a lecture on

“is to bring dialogue and inquiry to the

Shakespeare’s relevance to modern culture by renowned Harvard University

South Florida community in order to

students to take surveys of common

One class project assigned

scholar and author Marjorie Garber.

enrich its public intellectual culture.”

nightmares, then visually represent

science are to each other.”

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

I N T E L L E C T U A L H U B , I N VA L U A B L E R E S O U R C E

E T H I C A L LY E N G A G E D

In the 21st century, libraries are much

From stem cell research to CEO com-

in Ethics in the United States. The

more than repositories of books. The

pensation, ethical considerations

Ethics Programs are an international

University of Miami Libraries are on

inform every human endeavor. “You’ll

leader in ethics and information

the cutting edge of what a contem-

find ethical issues in the headlines

technology and have an NIH grant to

porary academic library can be.

of any major newspaper,” says Anita

foster biomedical research ethics in

Cava, co-director of University of

Latin America. Ethics programming

ary readings, information literacy

With rotating exhibitions, liter-

Miami Ethics Programs and professor

now permeates nearly every aspect

and digital technology courses, rare

of business law in the School of

of University life and has inspired ex-

objects that tell the history of South

Business Administration.

tracurricular activities such as the UM

Florida and surrounding regions, and

Ethics Society, whose debate team

an on-site Starbucks, the Otto G.

has racked up a series of victories

Richter Library, the flagship of

Goodman, professor of medicine and

in the Intercollegiate Ethics Bowl.

the University Libraries system,

philosophy, “is precisely what a great

is a social, cultural, and intellec-

Community leader and UM

I S L A N D E X P L O R AT I O N S

university is all about. Rules are fine

Trustee Adrienne Arsht has con-

tual hub for the entire Univer-

resources. These achievements have

A growing range of general and special

and opinions are nice, but serious

tributed $3 million to UM Ethics

Nikita Shiel-Rolle, A.B. ’10, may well have seawater running through her veins. The 23-year-old

sity community.

helped earn the Libraries a spot

collections and University Archives

ethics demands reasons for beliefs.”

Programs over the past four

Irish-Bahamian is never far from her beloved ocean—whether at home in Nassau, visiting her

among the nation’s top 50 academic

holdings are digitized at the University

A suite of University-wide

years, supporting the debates, a

grandparents in Andros, researching in the Exumas, or exploring in the Galapagos, where she

sity Librarian William D. Walker,

research libraries.

Libraries, preserving often fragile

interdisciplinary initiatives that drive

distinguished speaker series, and

spent her final semester as a University of Miami marine affairs and policy major.

the Libraries have in recent

materials and making them more

an extraordinary range of classes,

research grants.

years seen a 35 percent growth

resources include photographs, man-

broadly available to scholars.

conferences, research projects, and

founder of the Danguillecourt Project, an environmental nonprofit dedicated to preservation of

in holdings—now more than

uscripts, videos, books, and other

seminars, the UM Ethics Programs

trying to help students reason

the Bahamian ecosystem, created in partnership with the Rosenstiel School of Marine and Atmo-

3.3 million volumes—and an

objects drawn from 36 University

collections, the Libraries also award

include the only World Health

through issues and make good deci-

spheric Science. Hundreds of her photographs appear in the 450-page coffee-table book Islands

explosion of multimedia and

of Miami collections, including the

digital fellowships to faculty seeking

Organization Collaborating Center

sions that will withstand scrutiny.”

of the Sun: A Tribute to the Northern Exuma Cays, Bahamas, which Danguillecourt published

networked information

Cuban Heritage Collection, oral his-

to digitize resources that will have a

last year.

tories of South Floridians, theses and

significant impact on teaching, learn-

Led by Dean and Univer-

The Libraries’ 44,000 digital

Ultimately, says Cava, “We’re

An accomplished diver, underwater photographer, and videographer, Shiel-Rolle is a

Lured to UM by the Rosenstiel School’s world-class marine science programs, Shiel-Rolle

dissertations, thematic exhibits, and

ing, and research.

also dived into ample opportunities to diversify her fields of study, graduating last spring with

In recent years, Dean and

more. Online library users also can

minors in business and botany. For her junior and senior years, she received a full scholarship

“Our ultimate goal is to create a

University Librarian William

access ARTstor, a database of more

central scholarly virtual resource that

Walker has spearheaded dramatic

than one million images in the arts,

will meet the needs of UM faculty,

Professors Ken Goodman and Anita

UM faculty on a National Geographic expedition to the spectacular blue holes of the Bahamas.

growth at the University Libraries,

architecture, humanities, and social

scholars, and students in the arts,

Cava co-direct UM Ethics Programs,

which serve as a technologically

sciences. In an innovative approach

humanities, and beyond,” says

a suite of University-wide initiatives

sustainability mentoring and education initiative, Shiel-Rolle is dedicated to inspiring future

to broadening access to scholarly

Walker. Thanks in large part to his

devoted to examining the ethical

marine conservationists and an active citizenry. Now back in the Caribbean to help protect her

efforts, that goal is clearly in view.

dimensions of business, medicine,

treasured islands, she says, “I am committed to creating positive environmental change within

law, and other disciplines.

the Bahamas through education.”

advanced, resource-rich partner in scholarly activities throughout the University community.

Learning to grapple with such

challenges, says co-director Ken

through the Organization of American States; during the summer in between, she accompanied Already the founding director of Young Bahamian Marine Scientists, an environmental

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

mology in the 20th annual survey of

SEPTEMBER 2009

“America’s Best Hospitals,” published

out interrupting their careers. The

musicians. In addition, the Frost

immigrants of all nationalities in a

school’s faculty members travel to

School now houses the institute’s

full range of immigration matters,

Puerto Rico to teach the classes.

The School of Law establishes the

library, which consists of hundreds

including asylum claims and deporta-

nation’s first Therapeutic Jurispru-

of pieces for orchestra by Henry

tion defense of longtime permanent

dence Center. The center conducts

Mancini and other film and contem-

residents.

Cracking the Top Tier

theoretical and empirical research in

porary composers.

The University of Miami cracks the

an innovative field that uses the tools

top tier of U.S.News & World Report ’s

of the behavioral sciences to increase

2010 edition of “America’s Best

the understanding of law and how it

Speaking of Engineering

Florida’s first Center for the Humani-

Colleges,” coming in at No. 50. The

can be reshaped to diminish its anti-

The College of Engineering’s 2009-

ties, which is dedicated to supporting

following year, UM rose to No. 47 in

therapeutic effects and maximize its

Graduate School Enrollment

2010 Distinguished Speaker Series

humanities, arts, and interpretive so-

the rankings.

therapeutic potential. It also pub-

Surges

gets under way, featuring profession-

cial science research and teaching, as

Helping Structures

lishes scholarly books, articles, and

s The Graduate School records a

als who, through their research and

well as presenting public programs to

Withstand Storms

reports; trains judges and lawyers;

significant increase in enrollment in

educational accomplishments, have

enrich the region’s intellectual culture.

s The National Institute of Stan-

conducts community programs; and

fall 2009, admitting 28 percent more

made significant contributions to the

dards and Technology of the U.S.

hosts conferences, symposia, and

students than in 2007 or 2008.

engineering profession and society

Department of Commerce awards

other educational programs.

by U.S.News & World Report.

AUGUST 2009

Throughout the past year, the University of Miami

the nation’s most distinguished research universities.

clients, accepting cases of low-income

Linking Well-Being with Law

MILESTONES

continued on the fast track that has made it one of

students for careers as working

JULY 2009

capitalized on opportunities and realized myriad

accomplishments in intellectual inquiry, research,

scholarship, and service.

The College of Arts and Sciences establishes and inaugurates South

at large.

Capturing Carbon

lion grant funded by the American

A Tooth for an Eye

The Department of Energy awards

Recovery and Reinvestment Act to

s In the first such operation in the

$1.7 million to a team of researchers

build a new high-tech research facil-

United States, surgeons at Bascom

at the Rosenstiel School to investi-

ity at the Rosenstiel School of Marine

Palmer Eye Institute implant a tooth

gate new methods for monitoring

and Atmospheric Science, where

in a 60-year-old blind woman’s

leakage from potential carbon diox-

scientists will study how structures

eye, using it to anchor an artificial

ide (CO2) reservoirs, which are used

and their surrounding environment

Gift Advances Genomics

cornea that has restored her vision.

to store the gas underground—keep-

are affected by hurricanes. The facil-

s The Miller School’s Miami Institute

Sharon “Kay” Thornton, of Smithdale,

ing it out of the atmosphere, where it

ity will also house a state-of-the-art

for Human Genomics, nationally

Mississippi, had been blind for nine

would do substantial harm.

Marine Life Science Center.

known for its groundbreaking work

years due to Stevens-Johnson syn-

A Gift from Goizueta

s The Goizueta Foundation donates

drome, a rare, serious skin condition

New Clinic Helps Immigrants

No. 1 Again

mysteries behind autism and many

Mancini in Miami

that destroys the cells on the surface

The School of Law launches an ambi-

PR Business

Miami to support a comprehen-

For the sixth year in a row, the Miller

common diseases, receives a

s After ten years in Los Angeles, the

of the eye, causing severe scarring

tious clinic in which students will

s The School of Business Adminis-

sive University-wide plan that will

School of Medicine’s Bascom Palmer

$20 million naming gift from

Henry Mancini Institute finds a new

of the cornea.

represent low-income immigrants

tration launches its Executive M.B.A.

enhance and expand the reach of

Eye Institute is ranked the No. 1

the John P. Hussman Foundation to

home at the Frost School of Music.

in South Florida. Students are the

program in Puerto Rico, enabling

the Otto G. Richter Library’s Cuban

hospital in the country for ophthal-

support its critical research efforts.

HMI is embedded within the Frost

primary advocates of the clinic’s

professionals living and working in

Heritage Collection.

in unraveling some of the medical

School curriculum, preparing music

26 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Supporting the Humanities

OCTOBER 2009

the University of Miami a $15 mil-

The dynamic members of the University community

NOVEMBER 2009

$2.4 million to the University of

the region to earn the degree with-

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

tions through the Internet via their

Wiping Out Hunger

University of Miami medical relief

laptops, iPhones, or other mobile

With poverty a major cause of

effort that will include the establish-

devices, completely untethered.

hunger and food insecurity in the

ment of a 240-bed field hospital.

FEBRUARY 2010

United States, the School of Law es-

MARCH 2010

films featuring Hollywood stars such

or having their affordable housing

Cancer Colloquium

as Charlie Chaplin, Buster Keaton,

applications denied.

The School of Education, in conjunc-

Stimulating the Neurosciences

and Mack Sennett’s Keystone Cops.

tion with the School of Nursing and

Rebuilding a Nation

The National Institutes of Health

The golden age of television is also

Health Studies, hosts the first annual

For five days in late March, Haitian

Fraternity House Opens

tablishes a new program through its

Foote’s Field

awards UM a $14.8 million grant

represented in programs such as This

“From Surviving to Thriving” col-

architects and engineers—unable to

The University of Miami chapter of

Center for Ethics and Public Service

The University dedicates the Edward

funded by the American Recovery

Is Your Life, The Roy Rogers and Dale

loquium. The event provides health

work effectively in their own studios

Sigma Alpha Epsilon fraternity joins

aimed at addressing the problem in

T. Foote II University Green, giving a

and Reinvestment Act to build a

Evans Show, and The George Burns

care professionals and survivors with

back home, where infrastructure was

members of the UM community in

South Florida. The Hunger Project

new name to the area between the

Neuroscience and Health Annex,

and Gracie Allen Show.

up-to-date information on physical

destroyed by the devastating January

dedicating the first fraternity house

is designed to alleviate hunger in

Richter Library and Whitten Univer-

which will create an interactive hub

fitness and nutrition in breast cancer

12 earthquake—gather at the School

to be built on school grounds in

low-income and impoverished local

sity Center where Foote, UM’s fourth

for interdisciplinary research based

survivorship.

of Architecture to collaborate with

four decades.

communities through active solicita-

president, presided over numerous

on neurological imaging and health

professors, students, and local plan-

Cataloging Marine Life

tion of non-perishable food items

commencement ceremonies.

Ocean Science for Future

research and provide facilities to be

ners on an ambitious post-disaster

s The Rosenstiel School launches a

to support local food pantries and

Generations

shared by scientists from the Col-

plan for the Caribbean nation’s

first-of-its-kind interactive database,

distribution programs.

s The University of Miami announc-

lege of Arts and Sciences and Miller

the Digital Atlas of Marine Species

es the creation of the R.J. Dunlap

School of Medicine.

and Locations, which visually catalogues marine life while providing encyclopedic content to users.

recovery. Proposals presented to

All’s Well at the “U”

the Haitian government include

Marine Conservation Program. This

s The University of Miami takes a

plans to spur economic growth in

joint initiative of the Rosenstiel

major step toward improving the

outlying regions.

School of Marine and Atmospheric

overall health of its workers and their

Science and Leonard and Jayne

family members by rolling out a new

Faster, Higher, Smarter

Abess Center for Ecosystem Science

University of Miami student-athletes

and Policy will focus on advancing

Helping Miami’s Poor

’Canes, that includes everything from

who began college between 1999

ocean research through hands-on

s The School of Law launches two

cooking and exercise classes and free

and 2002 have an overall graduation

field and virtual learning experi-

new clinics aimed at helping needy

preventive care to vending machines

Landmark Summit

ences for high school and university

and underrepresented clients. The

that dispense fresh fruit.

s The College of Engineering or-

students.

Federal Appellate Clinic provides

rate of 82 percent, according to

DECEMBER 2009 M.B.A. Program among the Best

figures released by the NCAA. The UM rate exceeds the 79 percent

Inaugural Class

figure compiled by all NCAA

s The School of Nursing and Health

Division I universities.

Studies graduates the first class from

employee wellness program, Well

s The full-time M.B.A. program at

JANUARY 2010

the School of Business Administra-

UM Raises $1.3 Million for

ganizes and hosts a first-of-its-kind

upper-level students with the

Recording Contract

joint regional meeting between the

opportunity to plan, research, and

The School of Law and the Frost

National Academy of Engineering

tion is ranked No. 52 in the U.S. by

United Way

Film Treasures

draft pending federal appeals for

School of Music launch a new joint

and the Institute of Medicine, where

its new Doctor of Nursing Practice

Helping Haiti

the influential Financial Times in the

Despite a sluggish economy, the

s The School of Communication

indigent criminal defendants referred

degree program in law and music

scientists and physicians gather to

Online from Anywhere

program, which prepares expert

s One day after a powerful 7.0-mag-

newspaper’s annual M.B.A. rankings

University of Miami has the most

acquires the $32 million Norton

by the federal public defender for

business. The first of its kind in

examine the role of engineering in

Dream Season

The College of Engineering unveils

nurse practitioners to design, admin-

nitude earthquake strikes Haiti, Miller

issue, which also ranks the school

successful United Way campaign in

Herrick collection, which includes

the Southern District of Florida. The

the country, the program enables

improving health care.

s The University of Miami women’s

its Virtual Academic Computing

ister, and evaluate practice interven-

School medical personnel arrive in

No. 35 in the nation and No. 40 in the

its history, raising $1.3 million for the

approximately 3,500 high-quality

Tenants’ Rights Clinic allows students

students to earn a J.D. and a Master

basketball team defeats the Michigan

(ViAComp) platform, which can be

tions and health care systems, with

Port-au-Prince to begin caring for the

world for research.

annual fundraising effort to benefit

films from the golden age of mov-

to represent clients being evicted

of Music in Music Business and

Wolverines to secure a berth in the

deployed from anywhere in the

a special focus on reducing health

injured, setting in motion a massive

the community.

ing pictures, spanning the 1930s

from public and subsidized housing,

Entertainment Industries.

Women’s National Invitation Tourna-

world, allowing students to access

care disparities.

though the 1970s. Among the rare

receiving Section 8 terminations,

sophisticated software applica-

28 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

ment Championship Game, marking

films in the collection: early silent

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

the first time in team history that UM

dramatic rise, moving up 11 slots in

Center. He calls to the stage a group

Addressing Health Policy

neur and innovator resource center),

Funding the Fight

and Research (CIBER), which will be

advances to the finals of the postsea-

one year. The school is ranked 60th

of students to recognize them for

The School of Business Administra-

serving as a national model for

against Cancer

housed at the School of Business

son tournament.

this year out of 188 schools; last year

starting service projects, dubbed

tion announces that it will establish

fostering entrepreneurship through

The 21,000-member Papanicolaou

Administration and will carry out

it was ranked number 71.

“Commitments to Action,” which are

a Center for Health Sector Manage-

higher education. The major grant

Corps for Cancer Research gives

programs that increase and promote

The Memory of an Elephant

at the heart of his initiative.

ment and Policy, which will con-

to UM’s Launch Pad comes only a

$3.2 million to fund vital cancer

the nation’s capacity for international

Nelson Dellis, a graduate student

duct and publish research; act as

few months after the Ewing Marion

research at Sylvester Comprehensive

understanding and competitiveness,

in the College of Arts and Sciences’

about 250 of the more than 1,000

a resource for technical assistance

Kauffman Foundation announces a

Cancer Center.

particularly in the service sector.

Department of Computer Science,

new commitments at the meet-

and consultation on health care

grant to help sustain and grow the

breaks a national record at the 13th

ing, ranging from the creation of a

management practices; and provide

center.

Annual USA Memory Championship

network of community youth centers

interactive conferences and forums

by remembering the first 178 digits

in the Haitian slum of Cite Soleil to a

to educate industry professionals,

of a randomly generated 500-digit

program to rescue young victims of

An Academic Boost

policymakers, citizens, and the Uni-

Four-Star Recognition

number, with only five minutes to

sex trafficking in Miami.

s The University honors the

versity community.

s After evaluating more than 5,500

JUNE 2010

In all, UM students account for

study it.

MAY 2010

Camner family for its generous gift

of America’s largest charities, Charity

Nurturing Young Scientists

that dedicates the newly named

Navigator ranks the University of

s The University of Miami receives a

Camner Academic Resource Center,

Miami No. 1 among charities that

$1.4 million grant—its fifth con-

Global Initiative Comes to UM

which provides tutoring, counseling,

have earned the most consecutive

secutive—from the Howard Hughes

s The third Clinton Global Initiative

workshops, accessibility services,

Charity Navigator 4-Star ratings,

Medical Institute to strengthen its

University conference is held at UM.

and other forms of assistance to

demonstrating fundraising efficiency

undergraduate science education

More than 1,300 students from 83

thousands of undergraduate and

and ongoing fiscal excellence.

program. The College of Arts and

Making the Grade off

countries and all 50 states, along

graduate students each year.

Sciences, where the program resides,

the Gridiron

A Sturdier Launch Pad

Health and Elder Law Clinic

will use the resources to help attract

s The NCAA honors the University

Promoting Well-Being

trators, and national youth leaders,

Investing in the Future

The Blackstone Charitable Founda-

Wins Top Prize

first-generation college students

of Miami football program for a

s The School of Education creates

gather at the three-day meeting,

of Nursing

tion, in collaboration with the New

s The Health and Elder Law Clinic

and those from groups traditionally

multiyear Academic Progress Report

the Dunspaugh-Dalton Founda-

discussing and devising strategies

The School of Nursing and Health

Economy Initiative for Southeast

wins the Clinical Legal Education

underrepresented in the sciences to

score in the top 10 percentile. UM was

tion Community and Educational

pursue careers in science.

the only Bowl Championship Subdivi-

Well-Being Research Center. Funded

sion team that finished in the final

with a gift from the Dunspaugh-

with university presidents, adminis-

to make the world a better place.

Improving the Gift of Hearing

Studies receives funding approval

A Taste of Margaritaville at UM

Michigan, announces that Wayne

Association’s prestigious Award for

Among the issues addressed: educa-

s During a news conference at the

for two $20,000 scholarships from

s From flying to Miami on an

State University, Walsh College,

Excellence in a Public Interest Case

tion, the environment and climate

Clinical Research Building, noted res-

the Jonas Nurse Leaders Scholar

expired credit card to penning his

and the University of Miami have

or Project for its quick and success-

Medical Records Go Electronic

USA Today Coaches Poll and AP Top

Dalton Foundation, the center seeks

change, peace and human rights,

taurateur Barton G. Weiss announces

Program, a new national initiative

famous “Margaritaville” while driving

been selected as partners for the

ful commitment to helping Haitians

UHealth—University of Miami Health

25 College Footbal Poll after the

to prevent educational, emotional,

s The University of Miami places

poverty, and global health.

that his Barton G. Kids Hear Now

designed to increase the number of

along A1A, the colorful stories of

foundation’s first significant grant of

in South Florida obtain Temporary

System catapults itself into the elec-

2009 season.

physical, and social problems, while

high in the 2011 edition of “America’s

Foundation has committed $5 million

doctoral-prepared nurse educators

musician Jimmy Buffett, along with

$2 million. Blackstone Launch Pad

Protected Status following the Janu-

tronic realm of health care records

ary 12 earthquake in Haiti.

APRIL 2010 Moving Up

Former President Bill Clinton,

promoting well-being in individu-

Best Graduate Schools,” published by

who launched CGI U in 2007 to en-

to establish the Barton G. Kids Hear

and leaders. The scholarships will

a few tunes, entertain a University of

operations will be created at Wayne

with the launch of UChart, a secure

CIBER Space

als, relationships, organizations, and

U.S.News & World Report. The Miller

gage the next generation of leaders

Now Cochlear Implant Family Re-

benefit two qualified B.S.N.-to-Ph.D.

Miami audience during the Stamps

State and Walsh (based on UM’s

online portal for patients to access

The U.S. Department of Education

communities through interdisciplinary

School of Medicine ranked No. 47,

from college campuses around the

source Center at the Miller School’s

students.

Family Charitable Foundation Distin-

successful Launch Pad, an entrepre-

portions of their medical records

awards a major grant to the Univer-

research, university-community part-

moving up four slots from No. 51 last

world, opens the conference with a

Ear Institute.

anytime, from anywhere.

sity of Miami to establish a Center

nerships, educational and leadership

year. The School of Law has the most

plenary address at the BankUnited

for International Business Education

training, and consultation services.

30 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

guished Visitors Series, sponsored by Roe and Penny Stamps.

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Report on Business and Finance

The University’s performance in fiscal year 2010 improved significantly

over last year’s as the Great Recession wound down. This performance

reflected the strength of the University’s major revenue sources—tuition,

grants and contracts, and clinical care—as well as improved investment

markets and the effects of cost-containment measures implemented

over the last two years.

32 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

As the economic uncertainty contin-

has a long way to go to regain its

$82.2 million, driven primarily by a

operating activities of $12.5 million.

school in Florida, with a three-notch

ues, we remain focused on strength-

2007 peak level, but FY 2010 returns

ening our balance sheet (recognizing

helped considerably, adding $80 mil-

17 percent investment return on

improvement nationwide to 47th.

Growth Pool assets, made up of endow-

increased $23 million, or 6 percent,

Prospective students are recognizing

that this will be more marathon than sprint) and otherwise improving

lion to endowment net assets after

ment and a portion of working capital.

due to a modest rate increase and

the “U” as well. Freshman applica-

accounting for gifts and normal

Both the Growth Pool and the pension

growth in student enrollment in

tions for the Fall 2010 semester

financial performance.

spending distributions. Endowment

trust benefited from solid returns

graduate programs, especially law.

increased 18 percent over Fall 2009.

spending represents less than 2 per-

across a number of asset classes.

Enrollment has held steady dur-

Overall, the University’s net

Grants and contracts revenues

assets increased $43.1 million, or

cent of operating revenues, which

ing the recession, helped by the

were up nearly $7 million, or 1.5 per-

3 percent. This year’s increase, much

has minimized the effect of the mar-

lion were up $125 million, or 6 percent,

strengthening of the UM brand. We

cent, due primarily to an increase in

like the prior year’s decrease, was

ket decline on University operations.

while operating expenses increased

were pleased to be recognized in the

federal grants.

largely driven by changes in the value

just $63 million, or 3 percent, resulting

recently released U.S.News & World

of our investments. The endowment

non-operating activities increased

in an increase in net assets from

Report college rankings as the top

(both medical professional practice

Unrestricted net assets from

Operating revenues of $2.216 bil-

Tuition and fees revenues

Patient care operations revenues

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

O P E R AT I N G R E V E N U E S – $ 2 , 2 16 . 4

TOTAL REVENUE S

TOTAL ASSETS

E N D OW M E N T F U N D S

(in millions)

$2,500

$3,500

3,240

2,300

Hospitals and Clinics $693.0 (31.3%) Auxiliary Enterprises $96.8 (4.4%)

1,791

Investment Return $38.8 (1.7%)

Gifts and Trusts $91.5 (4.1%)

2,941

3,000 2,000

1,822

$800

2,912

2,982

741

(FTE) 20,000

736

700

621 1,797

2,500

2,503

ENROLLMENT

618

600

1,578

15,000

539

Tuition and Fees $392.3 (17.7%)

15,011

2006

2007

14,811

14,685

14,854

500

1,500

2,000 10,000

400

Other Sources $26.6 (1.2%)

14,926

1,500

1,000

300 1,000

200

5,000

500

Medical Professional Practice $403.6 (18.2%)

500

Grants and Contracts $473.8 (21.4%)

2006

2007

2008

2009

2010

100

2006

2007

2008

2009

2010

2006

2007

2008

2009

and hospitals and clinics) were up

surgical capabilities) and solid core

$42 million in plan contributions and

contributing. Overtime expenses

a healthy lifestyle, and a culture

Seawater Research Building. In

life science parks. The first tenant,

Roosevelt Thomas and Diane Cook,

$101 million, or 10 percent. Expenses

of community physicians. Outpatient

$66 million (18 percent) return on

were reduced. Monthly tuition bill-

where wellness is valued.

addition, we are developing plans

the UM Tissue Bank, is scheduled for

respectively, each of whom provided

were up just $37 million, or 4 percent.

visits, in particular, had solid growth

invested capital was more than offset

ing went online, saving paper and

for a state-of-the-art health center

move-in the summer of 2011.

extraordinary service to the Univer-

All three University hospitals had

due to expanded multidisciplinary

by actuarial adjustments resulting

postage. Document management and

steps to improve the safety of our

on the Coral Gables campus that

sity for more than 30 years.

significant growth in net patient rev-

programs in areas such as sports

from a 1 percent reduction in the

storage costs were reduced. Shuttle

campuses, implementing a new

will provide easy access to world-

plementing UChart, a state-of-the-art

enue, with Sylvester Comprehensive

medicine, complex imaging, bariat-

discount rate. The ERP has been

routes around campus were revised,

Emergency Notification System

class medical care for faculty, staff,

clinical enterprise information system

administration are committed to

Cancer Center/UMHC up 10 percent,

rics, pain management, and gastro-

frozen to new participants since June

improving efficiency and customer

and enhancing storm and disaster

students, and residents of South

that will improve access to patient

managing the fiscal affairs of the Uni-

University of Miami Hospital (UMH)

intestinal procedures.

1, 2007, when a new defined contri-

service. Though the savings from

preparedness.

Miami-Dade County.

records and increase the efficiency

versity in a responsible manner. Our

up 15 percent, and Anne Bates Leach

bution plan was launched. The ERP

most changes were modest, signifi-

of scheduling and billing.

success is dependent not only on our

Eye Hospital (ABLEH) up 7 percent.

the bulk of the investment perfor-

will require large contributions each

cant savings were achieved on

sparingly and strategically. On

campus, construction was completed

13,000-plus faculty and staff, whose

For the seventh consecutive year,

Non-operating activities, where

At the same time, we’ve taken

We are using capital resources

At the Miller School of Medicine

The Miller School has begun im-

Finally, I am pleased to report

mance improvement is reflected on

year for the foreseeable future.

a University-wide basis.

the Coral Gables campus, the

on a 23,000-square-foot modular

that two important leadership posi-

contributions are innumerable, but

the financial statements, was a posi-

67,000-square-foot Newman Alumni

research laboratory that will house

tions in Business and Finance were

also on our students, trustees, donors,

at ABLEH, was named the country’s

tive $82 million, as compared to last

and non-operating sources increased

strategic vision and mission that can

Center opened in October. An

basic scientists from neurology

filled this year. Nerissa Morris joined

and other friends of the University.

top eye hospital by U.S.News & World

year’s negative $287 million. What

$2.8 million. It is encouraging to see

only be achieved through the efforts

expansion to the Herbert Wellness

and medicine. Ground has been

the University as vice president of

Together they make the University a

The University has an ambitious

Report. UMH, in its second full year

a difference a year makes!

a slight uptick in philanthropy. We are

of its talented faculty and staff. Part

Center, a student favorite, is under

broken on the first building at the

human resources after a long and

wonderful place to teach, work, and—

of University ownership as a

confident that our donors’ generosity

and parcel of that success is the well-

way and will be completed next

University of Miami Life Science

successful career with the Ford

most importantly—learn.

multi-specialty acute care hospital,

the Employees Retirement Plan

will rebound over time along with

being of our people. Accordingly, the

spring. Deep in the planning process

& Technology Park on the eastern

Motor Company. John Shipley, a

increased net patient care revenues

(ERP) and other post-retirement

the overall economy.

University adopted a Wellness Philos-

are the Miguel B. Fernandez Family

border of the medical campus. The

seasoned financial executive at

Joe Natoli

significantly through its growing

benefits were a negative $53 million,

ophy that established a framework

Entrepreneurship Building and, at

250,000-square-foot facility is being

Purdue University, became our vice

Senior Vice President for

array of outstanding clinical services

as compared to last year’s negative

important role in our improved

and expectations for employees and

the Rosenstiel School campus, the

developed by Wexford Science &

president of finance and treasurer.

Business and Finance

(including state-of-the-art robotic

$112 million. The University’s

results, with dozens of initiatives

managers to actively support health,

Marine Technology and Life Sciences

Technology, a leading developer of

Nerissa and John succeeded

and Chief Financial Officer

Pension-related changes for

34 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Cost containment played an

2008

2009

2010

In closing, the board and the

Bascom Palmer Eye Institute, resident

Gifts and trusts from operating

2010

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Report on the Endowment

The beginning of the year was char-

The past year provided a sharp and welcome contrast to the significant declines

gains and avoid a second negative

new period of high volatility accom-

return year. Fortunately this was not

panied by above-average market

a repeat of late 2008-2009, although

returns. We are confident that the

a number of days were reminiscent

University’s managers will be able

of the worst part of the financial

to exploit the often spectacular

meltdown. The Growth Pool’s broad

misvaluations that volatility typically

diversification, higher-than-average

creates. Many analysts believe that

liquidity, and skilled active-manager

most markets are reasonably priced

pool all helped to produce excellent

or even inexpensive, providing an

returns during the year. In particular,

excellent starting point for the

our investment managers focused on

new year.

purchasing securities of high-quality

companies at reasonable valuations.

the Growth Pool’s asset allocation as

The charts at top and center right

of May 31, 2010. The policy targets

Beginning Balance Return, including unrealized appreciation

of 2008-2009. The University of Miami’s endowment recovered a large portion

illustrate the Growth Pool’s outper-

are reviewed annually by the Board

and monetary stimulus worldwide.

formance against the custom bench-

of Trustees’ Investments Committee,

While the stimulus was successful in

mark for one, three, five, and ten

which also reviews the pool’s perfor-

averting a synchronized depression,

years, as well as the nominal value of

mance against a custom benchmark

the Euro crisis and concerns over

the endowment over one, five, ten,

and peer institutions. Individual

sovereign debt muted gains it was

and 15 years.

manager performance is reviewed on

the Federal Reserve position on

delivered a 17 percent total return, 3.8 percent better than the Total Portfolio

Benchmark, performing well on both an absolute and relative basis.

Time Period 10 Year

Growth Pool Returns (net of fees)

Total Portfolio

S&P 500

3.1%

1.8%

-0.8%

Barclay’s CPI Aggregate Increase Bond Index Rate 6.5%

2.6%

5 Year

3.1%

1.5%

0.3%

5.3%

2.5%

3 Year

-4.7%

-6.3%

-8.7%

6.9%

1.9%

1 Year

17.0%

13.2%

21.0%

8.4%

2.8%

E N D O W M E N T G R O W T H A T M A R K E T (in millions) One Year

Five Years

Ten Years

Fifteen Years

$538.6

$526.1

$465.2

$264.9

86.7

75.5

142.5

386.8

Distributions to operations, etc.* (32.7)

(152.1)

(259.8)

(338.1)

Gifts and other net additions

25.6

168.7

270.3

304.6

$618.2

Ending Balance

*This is pursuant to University policy, which is to distribute 5 percent of the three-year moving average of the corpus of most endowment accounts.

a regular basis and all managers are

LOOKING TO THE FUTURE

interest rates and the threat of

of the previous fiscal year’s losses. As of May 31, 2010, the Growth Pool

Benchmark Returns

The chart at bottom right details

acterized by unprecedented fiscal

intended to provide. Coupled with

GROWTH POOL VS. KEY INDICES

subject to the University’s rigid due

G R O W T H P O O L S T R AT E G I C A S S E T A L L O C AT I O N

diligence process. The portfolio con-

Allocation (%)

government fiscal legislation, the

While pricing in some markets is

tinues to be well positioned to deal

Asset Class

economic climate proved challeng-

cause for optimism, this view must

with the conditions that lie ahead.

Asset Class

ing for active managers.

be balanced with the likelihood that

high volatility and major macroeco-

John R. Shipley

U.S. Small Cap Equity

5.0

5.3

provided opportunities for active

nomic issues may become a fact of

Vice President of Finance

International Equity

20.0

18.5

investment managers who viewed

life rather than cycles of exceptional

and Treasurer

Emerging Markets Equity

2.5

3.5

it as a tool that allowed them to ac-

events. In earlier periods, such as the

Global Fixed Income

12.0

13.1

quire high-quality assets at attractive

1990s, high volatility was associated

Hedge Funds

30.0

28.4

prices. After 14 straight months of

with below-average returns. Ironi-

Private Equity

5.0

6.6

market appreciation, April and May

cally, it is possible we are entering a

Real Assets (including real estate)

8.0

6.3

Market volatility during the year

U.S. Large/Mid Cap Equity

Policy Target

May 2010

17.5

18.3

saw significant profit-taking and “derisking” as hedge funds and other large pools moved to safeguard

36 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Assets Cash and cash equivalents Accounts and loans receivable Contributions receivable Other assets Investments Property and equipment Trusts held by others Intangible assets Total Assets

Independent Auditor’s Report

To the Board of Trustees University of Miami We have audited the accompanying statements of financial position of the University of Miami (the University) as of May 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the University’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material

Liabilities Accounts payable and accrued expenses Deferred revenues and other deposits Accrued postretirement benefit cost Other liabilities Actuarial liability of annuities payable Reserves for medical self-insurance Government advances for student loans Bonds and notes payable Total Liabilities Net Assets Unrestricted Temporarily restricted Permanently restricted Total Net Assets Total Liabilities and Net Assets

May 2010

May 2009

$ 119.0 359.0 99.0 52.1 766.3 1,434.4 52.0 100.3 $ 2,982.1

$ $

126.7 337.4 101.1 52.0 713.7 1,431.6 48.6 101.2 2,912.3

$ 160.7 70.5 310.9 125.3 8.5 80.8 23.0 844.3 1,624.0

147.2 80.5 255.4 117.7 7.8 65.4 22.7 900.6 1,597.3

830.0 154.4 373.7 1,358.1 $ 2,982.1

788.6 170.3 356.1 1,315.0 2,912.3

St ate m e n t s o f Fi n a n c i a l Position As of May 31, 2010 and 2009 (in millions)

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as

The accompanying notes are an integral part of these financial statements.

evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the University as of May 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Fort Lauderdale, Florida August 27, 2010

McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs.

Member of RSM International network, a network of

The two firms operate as separate legal entities in an alternate practice structure.

independent accounting, tax and consulting firms.

38 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

St ate m e n t s of Ac t i v i t i e s For the years ended May 31, 2010 and 2009 (in millions)

Changes in unrestricted net assets Operating activities Operating revenues Tuition and fees, net Grants and contracts Medical professional practice Hospitals and clinics Gifts and trusts Net assets released from restrictions Endowment spending distribution Investment return Auxiliary enterprises, net Other sources Total operating revenues Operating expenses Instruction Research Public service Patient care Auxiliary enterprises Academic support Student services Institutional support Total operating expenses Change in unrestricted net assets from operating activities Non-Operating activities Endowment, annuity and other investment return Gifts and trusts Net loss on sale, disposal, and exchange of property and equipment Other sources Net assets released from restrictions Transfer to permanently restricted net assets Change in unrestricted net assets from non-operating activities Postretirement benefits related changes other than net periodic benefit cost Increase (decrease) in unrestricted net assets Changes in temporarily restricted net assets Endowment, annuity and other investment return Gifts and trusts Changes in value of annuities payable and trusts held by others Net assets released from restrictions Transfer to permanently restricted net assets Decrease in temporarily restricted net assets Changes in permanently restricted net assets Endowment, annuity and other investment return Gifts and trusts Transfer from unrestricted and temporarily restricted net assets Increase in permanently restricted net assets Increase (decrease) in total net assets Net Assets Beginning of year End of year

40 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

May 2010

May 2009

$ 392.3 473.8 403.6 693.0 58.5 33.0 32.7 6.1 96.8 26.6 2,216.4

369.5 467.0 372.6 623.3 69.2 17.3 34.7 7.3 99.5 31.2 2,091.6

445.7 208.8 168.8 965.0 138.4 131.9 44.1 101.2 2,203.9 12.5

448.7 202.5 154.2 927.9 141.3 130.3 44.4 92.2 2,141.5 (49.9)

66.8 8.3 (1.7) – 9.2 (.4) 82.2 (53.3) 41.4

(306.4) 6.1 (1.1) (.3) 16.3 (1.1) (286.5) (111.8) (448.2)

1.5 26.6 (1.1) (42.2) (.7) (15.9)

(3.0) 13.4 (2.0) (33.6) – (25.2)

4.4 12.1 1.1 17.6 43.1

2.3 14.0 1.1 17.4 (456.0)

1,315.0 $ 1,358.1

1,771.0 1,315.0

The accompanying notes are an integral part of these financial statements.

Cash flows from operating activities Increase (decrease) in total net assets Adjustments to reconcile increase (decrease) in total net assets to net cash provided by (used in) operating activities Net realized and unrealized (gains) losses on investments and other assets Gifts and trusts Depreciation and amortization Provision for doubtful accounts Net loss on sale, disposal, and exchange of property and equipment Present value adjustment on annuities payable and trusts held by others Amortization of bond premiums Change in operating assets and liabilities Increase in Accounts and loans receivable Goodwill Other assets Increase (decrease) in Accounts payable and accrued expenses Deferred revenues, annuities payable and other liabilities Accrued postretirement benefit cost Reserves for medical self-insurance Government advances for student loans Net cash provided by (used in) operating activities Cash flows from investing activities Purchases of investments Proceeds from the sales and maturities of investments and sales of other assets Capital expenditures for property and equipment Student and shared appreciation mortgage loans: New loans made Principal collected Net cash used in investing activities Cash flows from financing activities Gifts for plant expansion and endowment Proceeds from the issuance of debt Payments to retire bonds and notes payable Net cash (used in) provided by financing activities Cash and cash equivalents Net decrease Beginning of year End of year

May 2010

May 2009

43.1

(456.0)

(102.2) (50.0) 124.5 97.1 1.7 1.1 (2.4)

289.7 (26.6) 110.2 81.0 1.1 2.0 (1.0)

(110.2) (1.7) (.5)

(139.5) – (5.2)

13.5 (3.3) 55.5 15.4 .3 81.9

(14.1) (3.1) 132.3 8.0 (.2) (21.4)

(195.1) 253.3 (119.5)

(169.5) 375.2 (223.4)

(13.3) 4.8 (69.8)

(19.9) 6.9 (30.7)

34.1 45.4 (99.3) (19.8)

23.3 55.0 (43.9) 34.4

(7.7) 126.7 119.0

(17.7) 144.4 126.7

St ate m e n t s o f C a s h F l ow s For the years ended May 31, 2010 and 2009 (in millions)

The accompanying notes are an integral part of these financial statements.

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

1. Organization

The University of Miami (the University) is a private not-for-profit institution located in South Florida. Founded in 1925, the University owns and operates educational and research facilities as well as a health care system. Its mission is to educate and nurture students, to create knowledge through innovative research programs, and to provide service to our community and beyond by pursuing excellence in health care. These financial statements include the accounts of all entities in which the University has a significant financial interest, and over which the University has control, including its hospitals and clinics. All significant intercompany accounts and transactions have been eliminated in the preparation of these statements.

2. Summary of Significant Accounting Policies and Reporting Practices Basis of Presentation The financial statements of the University, including its hospitals and clinics, have been prepared on the accrual basis of accounting and in conformity with accounting principles generally accepted in the United States of America for not-for-profit organizations. The three net asset categories as reflected in the accompanying financial statements are as follows: Unrestricted - Net assets which are free of donor-imposed restrictions. It includes the University’s investment in property and equipment and amounts designated by management for support of operations, programs, and facilities expansion. The University has determined that any donor-imposed restrictions for current or developing programs and activities are generally met within the operating cycle of the University and, therefore, the University’s policy is to record these net assets as unrestricted. This category includes all revenues, expenses, gains and losses that are not changes in permanently or temporarily restricted net assets. It also includes realized and unrealized gains on endowment and other long-term investments, even though the University’s policy is to reinvest such earnings for future growth and to use these earnings in accordance with donor stipulations as to the original gift corpus. Unrestricted non-operating activities reflect transactions of a long-term investment or capital nature including net realized and unrealized investment gains not used to support current operations as well as contributions to be used for facilities and equipment. Temporarily Restricted - Net assets whose use by the University is limited by donorimposed stipulations that either expire with the passage of time or that can be fulfilled or removed by actions of the University pursuant to those stipulations. These net assets are available for program purposes, i.e., education, research, public service, and scholarships, as well as for buildings and equipment. Permanently Restricted - Net assets whose use by the University is limited by donorimposed stipulations that neither expire with the passage of time nor can be fulfilled or otherwise removed by actions of the University. These net assets are invested in perpetuity, the income from which is expended for program purposes, i.e., education, research, public service, and scholarships. Use of Estimates The preparation of these financial statements requires management of the University to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Income Taxes The University is exempt from federal income taxes under Section 501(c) (3) of the Internal Revenue Code. Accordingly, no provision for income taxes is made in the financial statements. Cash Equivalents All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.

42 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Investments Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See note 5 for fair value measurements. The University’s investments include various types of investment securities which are exposed to various risks such as interest rate, market, and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in risks in the near term could materially affect the amounts reported in the financial statements. Revenue Recognition Tuition and fees revenue is reported in the fiscal year in which educational programs are primarily conducted. Scholarships and fellowships awarded to students for tuition, fees, and room and board are based upon need and merit, and are netted against tuition and fees, and auxiliary enterprises revenue in the statements of activities as follows (in millions): 2010 2009 Scholarships and fellowships: Institutionally funded Externally funded - gifts and grants Total amount netted against tuition and fees revenue

Amount netted against auxiliary enterprises revenue

$ 133.4 10.5

$ 130.1 10.0

$ 143.9

$ 140.1

10.3

10.5

Gifts of cash, property and marketable securities are recorded as revenue when received. Unconditional pledges (note 4) are recognized as revenue based on the estimated present value of the future cash flows, net of allowances, when the commitment is received. Pledges made and collected in the same reporting period are recorded when received in the appropriate net asset category. Conditional pledges are recorded as revenue only when donor stipulations are substantially met. Grants and contracts revenue is recognized as expenses are incurred. Medical professional practice, and hospitals and clinics revenue (patient care revenue) are recorded net of contractual adjustments, discounts and allowances, and include amounts estimated by management to be paid by third-party governmental and private payors. Revenue received before it is earned is deferred.

Annuities Payable and Trusts Held by Others Certain gift annuities, charitable lead and remainder annuity trust agreements have been entered into with donors. Assets held under these agreements are valued at fair value based on either the present value of expected cash flows or the value of the University’s share of the underlying assets. These assets are included in trusts held by others on the statements of financial position, except for gift annuities which are included in investments. Gift annuities included in investments totaled $17.3 and $17.2 million at May 31, 2010 and 2009, respectively. Generally, revenue from gift annuities and trusts is recognized at the date the agreements are established net of liabilities for the present value of the estimated future payments to donors and/or other beneficiaries. The liabilities are adjusted during the term of the trusts for changes in the value of the assets, accretion of the discount, and other changes in the estimates of future benefits. The University is also the beneficiary of certain perpetual trusts which are also included in trusts held by others on the statements of financial position. The fair value of the trusts, which are based on either the present value of the estimated future cash receipts or the fair value of the assets held in the trust, are recognized as assets and gift and trust revenue as of the date the University is notified of the establishment of the trust. Distributions from the trusts are recorded as gift and trust revenue, and the carrying value of the assets is adjusted for changes in fair value.

2. Summary of Significant Accounting Policies and Reporting Practices (continued) Medical School Faculty physicians, in addition to teaching and conducting research, engage in the practice of medicine, which generates patient care revenue. Revenues and expenses, including compensation and administrative operations from the practice of medicine, are reflected as University revenues and expenses. The net assets of patient care activities are designated for medical school programs. The University and the Public Health Trust of Miami-Dade County, Florida (PHT), owner and operator of Jackson Memorial Hospital (JMH), have entered into an affiliation agreement related to their independent missions within the designated land and facilities that comprise the Jackson Memorial Medical Center. Pursuant to that agreement, the PHT provides clinical facilities for the teaching of the University’s medical students. Medical education of its students is the sole responsibility of the University. In addition, the University has agreed to permit its faculty to apply for privileges at JMH to train and supervise JMH house staff (interns, residents, and fellows) and to treat hospital patients in their capacity as members of JMH’s attending medical staff. All such treatment and training is the sole responsibility of the PHT in its capacity as the legal owner and operator of the Jackson Health System’s public hospitals and clinics and its statutory teaching hospital (JMH). The affiliation agreement provides the terms for the mutual reimbursement of services provided. Insurance The University manages property and liability risks through a combination of commercial insurance policies and self-insurance. The University is self-insured for medical professional liability and hospital liability and maintains commercial excess loss coverage within specified limits. Provisions for medical professional liability claims and related costs are based on several factors, including an annual actuarial study using a discount rate of 3% as of May 31, 2010 and 2009. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Depreciation is not recorded on land and art objects. Leasehold improvements are amortized over the lesser of the lease term or the useful life. Facilities and Administrative Cost Recovery The Federal government reimburses the University for facilities and administrative costs incurred in connection with research grants and contracts based on predetermined rates through 2011. Facilities and administrative cost recovery from government and private sources included in grant and contract revenues totaled $65.7 and $60.1 million during the years ended May 31, 2010 and 2009, respectively. Facilities Expenses Facilities related expenses have been allocated across applicable functional expense categories in the statements of activities based on space usage (in millions): 2010 2009 Depreciation and amortization Interest Operations and maintenance Total

$ 124.5 38.3 110.8 $ 273.6

$ 110.2 39.3 118.0 $ 267.5

Accounting Change Due to New Pronouncements In July 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (ASC) as the single source of authoritative non-governmental GAAP. The Codification is effective for interim and annual periods ending after September 15, 2009. All existing accounting standards were superseded as described in ASC 105 (formerly Statement of Financial Accounting Standards (SFAS) No. 168, The FASB Accounting Codification and the Hierarchy of Generally Accepted Accounting Principles). All other accounting literature not included in the Codification is non-authoritative. The University adopted FASB Codification for the fiscal year ended May 31, 2010. In March 2008, the FASB issued ASC 815-10 (formerly SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities – an amendment of SFAS No. 133). The standard amends and expands the disclosure requirements of SFAS No. 133 with the intent to provide users of financial statements with an enhanced understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under SFAS No. 133 and its related interpretations, and how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. The University adopted this standard for the fiscal year ended May 31, 2010. In December 2008, the FASB issued ASC 715 (formerly SFAS No. 132(R)-1 Employers’ Disclosures about Pensions and Other Postretirement Benefits - an amendment of FASB Statement No. 132). This standard provides guidance on an employer’s disclosures about plan assets of a defined benefit pension and other postretirement benefits. The University adopted this standard for the fiscal year ended May 31, 2010. In April 2009, the FASB issued ASC 820 (formerly Staff Position 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly). The standard expands disclosures and requires that for major categories of debt and equity securities, the fair value hierarchy table be determined on the basis of the nature and risks of the investments. The University adopted this standard for the fiscal year ended May 31, 2010. In May 2009, the FASB issued ASC 855-10 (formerly SFAS No. 165, Subsequent Events), further updated in February 2010 through Update No. 2010-09 – Subsequent Events – Amendments to Certain Recognition and Disclosure Requirements. The standard as amended establishes accounting recognition and disclosure requirements of events that occur after the statement of financial position date but prior to the issuance of financial statements. The University has evaluated subsequent events through August 27, 2010 noting no impact on the University’s financial statements. In September 2009, the FASB issued ASC 740 (Update No. 2009-06, Income Taxes Implementation Guidance on Accounting Standards for Uncertainty in Income Taxes and Disclosure Amendments for Nonpublic Entities: An Interpretation of SFAS No. 109). The standard provides practical implementation guidance on uncertain tax positions taken by an entity. The University adopted this standard for the fiscal year ended May 31, 2010. The University’s management analyzed its tax positions and determined that no income tax adjustment related to the adoption of this standard is necessary.

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

Impairment of Long-Lived Assets ASC 360 (formerly SFAS No. 144, Accounting for Impairment or Disposal of Long-Lived Assets) requires that long-lived assets to be held by an entity, including intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No asset impairments were recorded by the University in fiscal years 2010 or 2009. Reclassifications Certain amounts in the prior year’s financial statements have been reclassified to conform to the current years’ presentation.

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

3. Accounts and Loans Receivable

At May 31, accounts and loans receivable consist of the following (in millions): 2010 Accounts and loans receivable, net: Patient care Grants, contracts and other Shared appreciation mortgages Student Student loans, net Total

$ 192.6 80.8 50.6 5.6 29.4 $ 359.0

2009 $ 172.8 87.4 41.5 5.0 30.7 $ 337.4

Accounts and loans receivable, and student loans receivable are net of allowances for doubtful accounts of $113.7 and $1.1 million, respectively, for 2010 and $86.7 and $.9 million, respectively, for 2009. Shared appreciation mortgages were provided as part of a program to attract and retain excellent faculty and senior administrators through home mortgage financing assistance. Shared appreciation notes amounting to $53.1 million and $44.0 million (net of $2.5 million allowance for doubtful accounts) at May 31, 2010 and 2009, respectively, from University faculty and senior administrators are collateralized by second mortgages on residential properties. The program was suspended effective December 31, 2008 with limited exceptions. Student loans are made primarily pursuant to federal programs and availability of funding. The related receivables have significant government restrictions as to marketability, interest rates, and repayment terms. Their fair value is not readily determinable.

4. Contributions Receivable (Pledges)

Unconditional pledges are recorded at the present value of their future cash flows using a discount rate commensurate with the risk involved. They are expected to be realized in the following periods at May 31, (in millions): 2010 2009 In one year or less Between one year and five years More than five years Discount of $18.6 and allowance of $10.5 for 2010 and $28.8 and $11.6 for 2009, respectively Total

5. Investments

$ 28.5 58.5 41.1 128.1

$ 28.8 59.1 53.6 141.5

(29.1) $ 99.0

(40.4) $ 101.1

The fair market value of investments at May 31, 2010 and 2009 amounted to $766.3 and $713.7 million, with a cost basis of $739.0 and $753.0 million, respectively. Short term investments consist primarily of commercial paper with maturities in excess of three months. Amounts included in limited partnerships and limited liability companies, other, represent alternative investments which are valued at the net asset value of the entities as determined by the fund. The majority of investments are combined in investment pools with each individual account subscribing to or disposing of shares on the basis of the fair value per share. At May 31, 2010 and 2009, the fair value of the University’s primary investment pool (the Growth Pool) amounted to $695.2 and $616.0 million, with a cost basis of $668.5 and $651.8 million, respectively. The Growth Pool is managed by multiple investment managers with asset allocation per the University’s investment policy. The total net unrealized gain (loss) on investments for the year ended May 31, 2010 and 2009 was $65.3 and ($160.4) million, respectively.

44 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Fair Value of Investments FASB ASC 820 (formerly SFAS No. 157, Fair Value Measurement), provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the University for investments measured at fair value: Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers or brokers in active markets. Inputs to the valuation methodologies include unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2 — Valuations for assets traded in less active dealer or broker markets. Inputs to the valuation methodologies include quoted prices from third party pricing services for identical or similar assets in active and/or inactive markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Valuations for assets that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Inputs to the valuation methodologies incorporate certain assumptions and projections in determining the fair value assigned to such assets. The asset or liability’s fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The University utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at May 31, 2010. The valuation methodologies used for other investment instruments measured at fair value consisted of:

Variable Rate Swap Agreement The University entered into a $20.0 million interest rate swap agreement in fiscal 2005 to manage the market risk associated with outstanding variable-rate debt. Parties to the interest rate swap agreement are subject to market risk for changes in interest rates as well as risk of credit loss in the event of nonperformance by the counterparty. The University deals only with high quality counterparties that meet rating criteria for financial stability and creditworthiness. The estimated cumulative fair value loss of the swap agreement was $2.8 and $1.9 million for the years ended May 31, 2010 and 2009, respectively and is included in other investments in the table below. Changes in the fair value, which for fiscal 2010 and 2009 amounted to an unrealized loss of $.9 and $.8 million, respectively, are recorded as non-operating activities in the statements of activities.

Level 1

Level 2

Level 3

N o te s to Fi n a n c i a l St ate m e n t s

$ 44.0

May 31, 2010 and 2009

2.4 - 52.5 - - -

- - - - 18.8 73.7

185.4 52.3 - 68.4 (.5) $ 441.2

5. Investments (continued)

Fair Value of Investments (continued) The following tables set forth by level, within the fair value hierarchy, the University’s investments at fair value (in millions): At May 31, 2010 Short term investments Debt securities: U.S. Treasury and other government agencies U.S. and political subdivisions of the states Publicly traded stocks: Large-mid cap Small cap Mutual funds: Equities: Emerging markets International Large-mid cap Small cap Fixed Income Balanced Limited partnerships and limited liability companies: Equities: Emerging markets International Large-mid cap Fixed income Private equity Other: Event arbitrage Long-short composite Real assets related securities Real estate Other investments Total

Total

Level 1

Level 2

Level 3

Short term investments U.S. government and agency obligations Corporate bonds Publicly traded stocks Mutual funds: Equities Fixed Income Balanced Limited partnerships and limited liability companies: Equities Fixed income Private equity Other Other investments Total

18.7

5.0

5.1

50.0 19.3

- -

6.1 1.6 6.9 18.9 61.7 12.0

- - - - - -

6.1 1.6 6.9 18.9 61.7 4.6

7.4

18.1 128.8 76.5 86.6 45.6

- - - - -

18.1 128.8 76.5 37.0 -

49.6 45.6

- - - - 13.5 87.8

66.3 81.6 26.8 16.9 13.8 $ 766.3

- 48.1 25.1 - .3 $ 457.5

At May 31, 2009 Total

7.4 .6 52.5 26.2 54.5 11.7

185.4 93.8 37.6 181.7 18.3 $ 713.7

5.0 .6 - 26.2 54.5 5.3

6.4

41.5 37.6 113.3 $ 198.8

66.3 33.5 1.7 16.9 $ 221.0

The following tables set forth a summary of changes in the fair value of the University’s level 3 investments. For the year ended May 31, 2010 (in millions): Mutual funds - balanced Limited partnerships and limited liability companies: Fixed income Private equity Other: Event arbitrage Long-short composite Real assets related securities Real estate Total

May 31, 2009

Purchases, sales, issuances and settlements, net

Net Income Reinvested

Total net gains (losses) included in changes in net assets Realized Unrealized

Transfers in and/or out of level 3

May 31, 2010

6.4

(.1)

7.4

41.5 37.6

- 1.9

1.8 .3

- 2.8

6.3 3.0

- -

49.6 45.6

52.5 41.7 2.4 16.7 198.8

- (12.2) (.5) 2.0 (8.9)

.3 (.5) - .4 2.6

1.4 4.0 (.3) .2 8.1

12.1 .1 .1 (2.4) 20.0

- .4 - - .4

66.3 33.5 1.7 16.9 221.0

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

5. Investments (continued)

9. Endowment

Fair Value of Investments (continued) For the year ended May 31, 2009 (in millions):

May 31, 2008

Mutual funds $ Limited partnerships and limited liability companies Total $

8.2 204.2 212.4

Purchases, sales, issuances and settlements, net $ $

(.1) 19.7 19.6

The total Level 3 unrealized gains (losses) for the periods relating to those investments still held at May 31, 2010 and 2009 total $20.0 and ($39.5) million, respectively, and are reflected as part of investment return in the statement of activities. The University is obligated under certain investment fund agreements to periodically advance additional funding up to specified levels. At May 31, 2010, the University had future investment funding commitments of $50.5 million.

Investment Return The University’s endowment spending distribution policy is to distribute five percent of the three-year moving average fair market value of the endowment investment pool. This policy is designed to protect the purchasing power of the endowment and to minimize the effect of capital market fluctuations on operating budgets. The components of total investment return as reflected in the statements of activities are as follows (in millions): 2010 2009 Operating: Endowment spending distribution Investment return Total operating investment return Non-Operating: Unrestricted Endowment interest and dividend income, realized and unrealized gains (losses), net of endowment spending distribution Other net realized and unrealized gains (losses) Total unrestricted non-operating investment return Temporarily restricted investment return Permanently restricted investment return Total non-operating investment return Total investment return

32.7 6.1 38.8

54.4 12.4 66.8 1.5 4.4 72.7

$ 111.5

6. Fair Value of Financial Instruments Other Than Investments

34.7 7.3 42.0

(218.5) (87.9) (306.4) (3.0) 2.3 (307.1) $ (265.1)

The carrying amounts of cash and cash equivalents, patient, student and other receivables, accounts payable and accrued expenses approximate fair value due to the short maturity of these financial instruments. The carrying amounts of notes payable with variable interest rates approximate their fair value since the variable rates reflect current market rates for notes with similar maturities and credit quality. The fair value of bonds payable with fixed interest rates is based on rates assumed to be currently available for bond issues with similar terms and average maturities. The estimated fair value of these bonds payable at May 31, 2010 and 2009 approximated $795.1 and $811.6 million, respectively. The carrying amounts of these bonds payable at May 31, 2010 and 2009 approximated $799.7 and $823.5 million, respectively.

46 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

Net Income Reinvested

Total net gains (losses) included Transfers in in changes in net assets and/or out Realized Unrealized of level 3

May 31, 2009

$ $

.2 4.9 5.1

(.1) 1.3 1.2

$ $

(1.8) (37.7) (39.5)

$ $

- - -

6.4 192.4 198.8

7. Property and Equipment

Property and equipment and related accumulated depreciation and amortization at May 31 consist of the following (in millions): Useful Lives 2010 2009 Land - Land improvements 20 years Buildings and building improvements 8 to 50 years Leasehold improvements 1 to 50 years Construction in progress - Moveable equipment 3 to 20 years Library materials 12 years Art objects - Accumulated depreciation and amortization

$ 91.0 77.3 1,477.0 32.6 27.5 498.3 108.6 49.7 2,362.0 (927.6)

$ 91.2 74.6 1,359.0 35.1 93.6 457.7 105.1 49.1 2,265.4 (833.8)

Total

$ 1,434.4

$ 1,431.6

Interest on borrowings to finance facilities is capitalized during construction, net of any investment income earned through the temporary investment of project borrowings. Net interest expense of $1.7 and $3.2 million was capitalized for the years ended May 31, 2010 and 2009, respectively.

8. Intangible Assets

On December 1, 2007, the University acquired certain assets and liabilities of a general acute care hospital. As part of the transaction, intangible assets were recorded amounting to $105.2 million. In addition, the University acquired a physician practice and recorded $1.7 million as an intangible asset for the year ended May 31, 2010. Intangible assets recorded are as follows (in millions): Useful Life 2010 2009 Amortized intangible assets Goodwill at gross carrying value Accumulated Amortization Indefinite lived intangible assets

40 years

$ 105.8 (6.6) 1.1

$ 104.1 (4.0) 1.1

Total

$ 100.3

$ 101.2

In August 2008, the FASB issued ASC 958-205-50 (formerly FASB Staff Position 117-1, Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds). This standard provides guidance on the net asset classification of donor-restricted endowment funds for a nonprofit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA). The State of Florida has not yet enacted a version of UPMIFA. Should the State of Florida enact a version of UPMIFA in a future period, the Board of Trustees of the University (the Board) will need to interpret the relevant law. Based on this interpretation, this standard could require significant reclassifications of some portion of donor-restricted endowment funds, from unrestricted to temporarily restricted net assets. This standard also requires additional disclosures about an organization’s endowment funds, whether or not the organization is subject to UPMIFA. The disclosure requirements of this standard are reflected below.

Interpretation of Relevant Law As discussed above, the State of Florida has not enacted UPMIFA. The Board has interpreted the current law, Uniform Management of Institutional Funds Act (UMIFA) as requiring preservation of the fair value of the original gift as of the gift date, absent explicit donor stipulations to the contrary. As a result of this interpretation, the University classifies as permanently restricted net assets (a) the original value of gifts donated where the donor has stipulated that the principal is to be maintained in perpetuity with only the income from the gift to be expended, (b) the original value of subsequent similar type gifts, and (c) accumulations to the fund made in accordance with the direction of the applicable donor gift instrument. Endowments are classified as temporarily restricted where the donor has stipulated that the principal of the gift may be released from inviolability to permit all or part of the principal to be expended, and as unrestricted endowments where the Board, rather than a donor, decides to retain and invest the principal with only the income available to be expended. The Board has the right at any time to expend the principal of unrestricted endowments. Spending Policy The University’s endowment spending distribution policy in support of its programs distributes five percent of the three-year moving average of the fair market value of the endowment investment pool. New endowments must be received prior to December 31 in order to activate the spending distribution for the next fiscal year. In addition, no distribution is made from an endowment until its funding reaches, by December 31, the level stipulated by policy. Further, endowments to establish Chairs and Professorships have an additional delay of one year before distributions are made. Return Objectives and Risk Parameters The University has adopted investment and spending policies to protect the purchasing power of the endowment and to minimize the effect of capital market fluctuations on operating budgets. Under the Growth Pool policy for the University’s primary investment pool (the Growth Pool), as approved by the Board, the intent is to achieve a rate of return equal to or greater than the respective benchmark, while assuming a moderate level of risk. To satisfy its longterm rate-of-return objectives, the University relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The University targets a diversified asset allocation that places a greater emphasis on equity based investments to achieve its long-term return objectives within prudent risk constraints. The current long-term return objective is to earn a return of at least the Consumer Price Index plus 5%, net of fees. Actual returns in any given year may vary from this amount.

Endowment net assets consist of the following (in millions): Temporarily Permanently Unrestricted Restricted Restricted

Total

As of May 31, 2009: Donor restricted endowment funds Quasi endowment funds Total

$ 83.9 124.4 $ 208.3

$ $

29.1 - 29.1

$ 301.2 - $ 301.2

$ 414.2 124.4 $ 538.6

As of May 31, 2010: Donor restricted endowment funds Quasi endowment funds Total

$ 128.6 147.6 $ 276.2

$ $

29.3 - 29.3

$ 312.7 - $ 312.7

$ 470.6 147.6 $ 618.2

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

Donor restricted endowment funds included in unrestricted endowment net assets represents the unappropriated appreciation of endowment funds, net of deficiencies in the market value of certain endowment related assets which fell below the donor required level to retain funds in perpetuity. At May 31, 2010 and 2009, this deficiency amounted to $14.1 and $28.4 million, respectively, and resulted from unfavorable market fluctuations that occurred shortly after the investment of new permanently restricted contributions, as well as continued appropriations for certain programs that was deemed prudent. Quasi endowment funds are resources segregated for long term investment and include gains and losses on unrestricted investments, and other resources designated by the Board of Trustees for future programs and operations. Changes in endowment net assets for the fiscal years ended May 31, 2010 and 2009 consist of (in millions): Temporarily Permanently Unrestricted Restricted Restricted Total Balance, May 31, 2008 Investment return Investment income Net depreciation (realized and unrealized) Total investment return Gifts and trusts Endowment spending distribution for programs Transfers to create quasi endowment funds Other Balance, May 31, 2009 Investment return Investment income Net appreciation (realized and unrealized) Total investment return Gifts and Trusts Endowment spending distribution for programs Transfers to create quasi endowment funds Other Balance, May 31, 2010

$ 419.2

29.2

$ 287.8

$ 736.2

(196.7) (183.8) -

- - .2

- - 12.3

(34.7)

3.5 4.1 208.3

- (.3) 29.1

- 1.1 301.2

3.5 4.9 538.6

5.5

(.3)

5.2

81.5 87.0 -

- - .1

- (.3) 10.7

81.5 86.7 10.8

(32.7)

- .1 29.3

12.9

9.4 4.2 $ 276.2

- 1.1 $ 312.7

12.9

(196.7) (183.8) 12.5

9.4 5.4 $ 618.2

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

10. Pension and Other Postretirement Benefit Plans

The University has two non-contributory retirement plans, the Faculty Retirement Plan and the Employee Retirement Plan. These two plans closed to new participants on May 31, 2007. On June 1, 2007 a new retirement plan was established, the Retirement Savings Plan. The University also sponsors an unfunded, defined benefit postretirement health plan that covers all full-time and part-time regular employees who elect coverage and satisfy the plan’s eligibility requirements when they retire. The plan is contributory with retiree contributions established as a percentage of the total cost for retiree health care and for the health care of their dependents. The University pays all benefits on a current basis. The Retirement Savings Plan (Savings Plan) is a defined contribution plan in which the University makes an automatic core contribution of 5% of pay with a dollar-for-dollar match on voluntary contributions up to an additional 5% of pay. Participation is limited to faculty and staff hired on or after June 1, 2007 or who elected, prior to June 1, 2007, to transfer to this plan from the Faculty Retirement Plan or from the Employee Retirement Plan. Core and matching contributions to the Savings Plan for 2010 and 2009 were $27.7 and $18.2 million, respectively. The Retirement Savings Plan II (Savings Plan II) is a defined contribution plan the University established, effective January 1, 2008, that covers substantially all employees of the University of Miami Hospital (UMH). The plan is available to employees who meet certain eligibility requirements and requires that UMH match certain percentages of participants’ contributions up to certain maximum levels. Core and matching contributions to the Savings Plan II were approximately $3.9 and $2.9 million for the years ended May 31, 2010 and 2009, respectively. Faculty Retirement Plan (Faculty Plan) is a defined contribution plan for eligible faculty hired between September 30, 1977 and May 31, 2007, and certain faculty hired on or before September 30, 1977, who ceased participation in the Employee Plan. Under the terms of the Faculty Plan, the University makes contributions to individual retirement accounts for each eligible faculty member. Payment from the retirement account commences when the faculty member has separated from service and elects to begin distributions in accordance with plan provisions. Contributions to the Faculty Plan are based upon a combination of compensation, tenure status, length of service, and other factors and are funded as accrued. These contributions were $25.5 and $25.2 million for the year ended May 31, 2010 and 2009, respectively. In addition to the above noted plans, there are deferred compensation arrangements for certain employees, principally clinical faculty, the liability for which is included in other liabilities. The Employee Retirement Plan (Employee Plan) is a defined benefit plan primarily for full-time non-faculty employees hired before June 1, 2007. Employee Plan assets are held by a Trustee. The benefits are based on years of service and the employee’s compensation during the last five years of employment. The Employee Plan also provides an alternative benefit through a cash balance benefit formula determined each year based on compensation and investment earnings. At May 31, 2009, a proposed Employee Plan amendment was approved by the Internal Revenue Service which enables the plan to offer lump sum distribution options to participants who retired on or after January 1, 2001 and met the Rule of 70. The measurement date for the Employee Plan and postretirement health benefit plan is May 31 for fiscal years 2010 and 2009. The following benefit payments, which reflect expected future service, are expected to be paid, for the fiscal years ending May 31 (in millions): Pension Benefits Postretirement Benefits

2011 2012 2013 2014 2015 2016-2020

48 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

$ 32.7 33.2 35.6 36.1 38.5 224.5

.2 .2 .2 .2 .2 1.2

The University expects to contribute $30.8 million to the Employee Plan and $.2 million to its postretirement health plan during the fiscal year ending May 31, 2011. The tables that follow provide a reconciliation of the changes in the plans’ projected benefit obligations, fair value of assets and funded status (in millions): Pension Postretirement Benefits Benefits Change in Benefit Obligation Benefit obligation at beginning of year $ Effect of eliminating early measurement date Service cost – benefits attributed to employee service during period and administrative expenses Interest costs accrued to measure benefit obligation at present value Plan participant contributions Actuarial loss (gain) Benefits paid and administrative expenses Change in plan provisions Benefit obligation at end of year Change in Plan Assets Employee Plan assets at fair value at beginning of year Effect of eliminating early measurement date Investment return on Employee Plan assets Benefits paid and Employee Plan expenses Employer contributions Plan participant contributions Employee Plan assets at fair value at end of year Funded status Accrued postretirement benefit cost recognized on the statement of financial position $

2009

2010

627.9

2010

2009

$ 613.7

3.0

2.6

5.7

17.3

16.8

41.5 - 112.2

41.0 - (14.1)

.2 .6 .2

.2 .6 .3

(34.9) (8.1) 755.9

(35.2) - 627.9

(.8) - 3.4

(.9) 3.0

375.5

493.2

1.5

66.1

(87.9)

(34.9) 41.7 -

(35.2) 3.9 -

(.8) .2 .6

(.9) .3 .6

448.4

375.5

(307.5)

Amounts recognized in unrestricted net assets consist of: Net actuarial loss (gain) $ 293.3 Prior service (credit) cost (5.7) Transition obligation - $ 287.6

$ (252.4)

$ 232.7 1.9 - $ 234.6

$ $

(3.4)

(1.0) (.9) .3 (1.6)

$ $

(3.0)

(1.2) (1.0) .5 (1.7)

At May 31, 2010 and 2009, the accumulated benefit obligation of the Employee Plan was $703.4 and $587.6 million, respectively, $254.9 and $212.1 million, respectively, in excess of Employee Plan assets.

10. Pension and Other Postretirement Benefit Plans (continued) The following table provides the components of net periodic pension cost for the plans (in millions): Pension Postretirement Benefits Benefits

2010

Service cost: Benefits attributed to employee service during periods and administrative expenses $ 17.3 Total 17.3 Interest costs accrued to measure benefit obligation at present value 41.5 Expected return on Employee Plan assets (31.2) Amortization of prior service cost/(credit) - includes changes in pension formula and cost of Employee Plan amendments (.6) Amortization of transition obligation - Recognized net actuarial loss 16.8 Net periodic benefit cost $ 43.8

2009

2010

2009

16.8 16.8

.2 .2

41.0

(40.9)

.4 - 7.0 24.3

(.1) .1 - .4

(.1) .1 .4

20.5 (.6) -

(.1) (.1) .1

A 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2010. The rate is assumed to decrease 1% per year until reaching the ultimate 5.5% in 2014. Assumed health care cost trend rates have an effect on the amounts reported for the health care plan. A 1% change in assumed health care cost trend rates would have the following effect (in millions): 1% Increase 1% Decrease Effect on total of service and interest cost components of net periodic postretirement health care benefit cost Effect on the health care component of the accumulated postretirement benefit obligation

Employee Plan Assets The investment policy and strategy, as established by the University, is to provide for growth of capital with a moderate level of volatility by investing assets based on its target allocations. The weighted average target allocations for plan assets of the Employee Plan is 34.0% equity securities, 35.0% fixed income, and 31.0% other investments. The University reallocates its investments periodically to meet the target allocations. The University also reviews its investment policy periodically to determine if the policy or allocations require change. Equity securities include investments in large-mid cap and small-cap companies primarily located in the United States, as well as international companies. Fixed income securities include corporate bonds of companies from diversified industries, mortgagebacked securities, and U.S. Treasuries. Other types of investments include investments in hedge funds and private equity funds that follow several different strategies. The Employee Plan’s investments, by level, within the fair value hierarchy are as follows (in millions): At May 31, 2010

The net actuarial (gain) loss, prior service cost (credit), and transition amount expected to be recognized in net periodic benefit cost over the next fiscal year are as follows (in millions): Pension Benefits Postretirement Benefits Net actuarial loss (gain) Prior service cost (credit) Transition obligation

To develop the expected long-term rate of return for the Employee Plan, the University considered the historical returns of the major market indicators relating to the target asset allocation, as well as the current economic and financial market conditions.

(.1)

(.4)

The following weighted-average assumptions were used for the above calculations: Pension Postretirement Benefits Benefits

2010

2009

2010

2009

Discount rate for benefit obligation Discount rate for net periodic benefit cost Expected return on Employee Plan assets Rate of compensation increase

5.65% 6.65% 8.25% 4.20%

6.65% 6.50% 8.50% 4.20%

5.65% 6.65% N/A N/A

6.65% 5.75% N/A N/A

Common stocks: Large-mid cap Small cap Registered mutual funds: Equities - emerging markets Fixed Income Unregistered limited partnerships and limited liability companies: Equities: Emerging markets International Large-mid cap Private equity Other: Event arbitrage Long-short composite Real estate Money market accounts Common collective trusts: Equities - international Real assets related securities 103-12 Investment entities: Equities: International Small cap Fixed income Other investments: Private equity Long-short composite Fixed income Real assets related securities Total

Total

Level 1

Level 2

Level 3

21.3 15.8

- -

3.1 70.0

- -

3.1 70.0

9.1 7.5 46.3 18.1

- - - -

9.1 7.5 46.3 -

18.1

28.3 19.9 10.3 .7

- - - .7

- 10.6 - -

28.3 9.3 10.3 -

9.9 12.7

- -

9.9 12.7

38.6 14.9 81.7

- - -

38.6 14.9 72.6

9.1

3.8 22.8 9.9 1.1

- - - -

- 13.4 - -

3.8 9.4 9.9 1.1

37.8

99.3

$ 445.8

$ 308.7

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

10. Pension and Other Postretirement Benefit Plans (continued)

11. Bonds and Notes Payable

Employee Plan Assets (continued)

At May 31, 2009

Common stocks Registered mutual funds Unregistered limited partnerships and limited liability companies: Private equity Event arbitrage Real estate Other Money market accounts Common collective trusts 103-12 Investment entities Other investments: Equities and private equities Real estate Other Total

Total

Level 1

Level 2

Level 3

28.7 37.9

28.7 -

- 37.9

65.3 22.5 10.2 21.1 9.5 11.5 132.3

- - - - 9.5 - -

51.5 - - 10.1 - 11.5 124.9

13.8 22.5 10.2 11.0 7.4

- - - 38.2

3.1 1.6 20.3 89.9

3.1 1.6 32.7 $ 376.4

- - 12.4 $ 248.3

Miami-Dade County, Florida Educational 2007A to 2015 to Facilities Authority 2008B 2038 Notes payable to 2013 to banks and others - 2014 Notes payable to banks and others 2035 Par amount of bonds and notes payable Net unamortized premium Total

For the year ended May 31, 2010 (in millions):

Unregistered limited partnerships and limited liability companies: Private equity Other: Event arbitrage Long-short composite Real estate 103-12 Investment entities: Fixed income Other investments: Private equity Long-short composite Fixed income Real assets related securities Total

Purchases, sales, issuances and May 31, 2009 settlements, net

Total net gains (losses) included in changes in net assets Realized Unrealized

Transfers in and/or out of level 3

May 31, 2010

13.8

2.2

1.0

1.1

18.1

22.5 11.0 10.2

1.4 (3.2) 1.2

1.7 1.3 .1

2.7 .2 (1.2)

- - -

28.3 9.3 10.3

7.4

1.1

9.1

(.3) (3.0) - (.3) (1.4)

- .8 - (.5) 4.4

1.0 (.2) 1.3 .3 6.3

- .1 - - .1

3.8 9.4 9.9 1.1 99.3

3.1 11.7 8.6 1.6 89.9

For the year ended May 31, 2009 (in millions):

Unregistered limited partnerships and limited liability companies 103-12 Investment entities Other investments Total

50 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

May 31, 2008

$ $

59.5 7.9 26.5 93.9

Purchases, sales, issuances and settlements, net $ $

9.7 .7 1.8 12.2

Total net gains (losses) included in changes in net assets Realized $ $

- - (.1) (.1)

Unrealized $ $

(11.7) (1.2) (3.2) (16.1)

4.0% to 6.1% 3.3% to 6.5% Variable

2009

767.8

$ 789.2

24.2

20.4

77.1

812.4

866.3

31.9 $ 844.3

34.3 $ 900.6

May 31, 2009 $ $

On December 18, 2008, the University entered into a line of credit arrangement which carries a maximum possible balance of $100.0 million. The loan has a variable interest rate equal to the LIBOR Daily Floating Rate plus 0.75% per annum. As of May 31, 2009, the University had drawn down $55.0 million of the loan balance. On December 17, 2009, the University renewed the line of credit under the same terms with a new maturity date of December 31, 2010. There was no balance outstanding under the line of credit as of May 31, 2010. In November 2009, the University borrowed $20.0 million from a bank to fund the Employees’ Retirement Plan. Total interest paid on all bonds and notes was $42.6 and $42.1 million for the years ended May 31, 2010 and 2009, respectively.

12. Net Assets

Unrestricted net assets consist of the following at May 31 (in millions): 2010 Designated for operations, programs, facilities expansion and student loans Cumulative postretirement benefits related changes other than net periodic benefit cost Invested in plant facilities Endowment and similar funds Total unrestricted net assets

Gifts for programs and facilities expansion Contributions (pledges) and trusts Life income and annuity funds Endowment and similar funds Total temporarily restricted net assets

$ 26.2 90.0 8.9 29.3 $ 154.4

2009 $ 36.9 94.8 9.5 29.1 $ 170.3

Permanently restricted net assets consist of the following at May 31 (in millions): 2010 Contributions (pledges) and trusts Endowment and similar funds Total permanently restricted net assets

$ 61.0 312.7 $ 373.7

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

2009

$ 54.9 301.2 $ 356.1

13. Gifts and Trusts

The University’s Advancement Office (Advancement) reports total gifts and trusts based on the Management Reporting Standards issued by the Council for Advancement and Support of Education (CASE). Gifts, trusts, and pledges (gifts and trusts) reported for financial statement purposes are recorded on the accrual basis. The table below summarizes gifts and trusts received for the years ended May 31, 2010 and 2009, reported in the statements of activities as well as the CASE standards as reported by Advancement (in millions): 2010 2009

The annual maturities for bonds and notes payable at May 31, 2010 are as follows (in millions): 2011 $ 24.4 2012 26.1 2013 26.1 2014 23.6 2015 21.9 Thereafter 690.3 Total $ 812.4

The following tables set forth a summary of changes in the fair value of the Employee Plan’s Level 3 investments.

Temporarily restricted net assets consist of the following at May 31 (in millions): 2010

Bonds and notes payable at May 31 consist of the following (in millions): Final 2010 Series Maturity Interest Rate 2010

2009

$ 117.9

$ 94.5

(286.0) 721.9 276.2 $ 830.0

Unrestricted gifts and trusts in support of programs Unrestricted gifts and trusts for plant expansion Temporarily restricted gifts and trusts for programs and plant expansion Permanently restricted endowment gifts and trusts Total gifts and trusts, per statements of activities Increases (decreases) to reflect gifts and trusts per CASE standards: Pledges, net Non-government grants, included in grants and contracts revenue Differences in valuation/recording: Funds held in trust by others Annuity Timing Gift-in-kind recorded under CASE standards only Total gifts and trusts as reported by Advancement

58.5 8.3

69.2 6.1

26.6 12.1 105.5

13.4 14.0 102.7

2.0

42.9

50.0

(.3) .4 2.6 6.4 $ 159.5

(4.6) .5 4.5 $ 153.6

(232.9) 718.7 208.3 788.6

57.5 7.4 25.0 89.9

UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

N o te s to Fi n a n c i a l St ate m e n t s May 31, 2010 and 2009

14. Commitments and Contingencies

The University had contractual obligations of approximately $66.1 million at May 31, 2010 for various construction projects and purchases of equipment. The University has also entered into professional service agreements with Hospital Corporation of America, Inc. (HCA, Inc) and various HCA, Inc. affiliates. Future minimum commitments under these agreements range from $3.1 to $24.3 million per year over the next eight years, totaling $131.1 million. In February 2008, the University entered into a five year Innovation Incentive Funding Agreement with the State of Florida (the State), Office of Tourism, Trade and Economic Development. The agreement creates the Miami Institute for Human Genomics (the Institute) and a program and infrastructure that supports and benefits its operations. The agreement calls for the State to fund $80.0 million with a University pledge for $100.0 million towards the financial support of the Institute. As of May 31, 2010, the University has received $43.4 million from the State and has spent $56.8 million in matching funds. The University, in its normal operations, is a defendant in various legal actions. Additionally, amounts received and expended under various federal and state programs are subject to audit by governmental agencies. Management is of the opinion that the outcome of these matters would not have a material effect on the University’s financial position or results of operations. The University leases certain real property. These leases are classified as operating leases and have lease terms ranging up to seventy five years. Total lease expense for the years ended May 31, 2010 and 2009 was $21.8 and $20.1 million, respectively. Future minimum lease payments under noncancelable operating leases at May 31, 2010 are as follows (in millions): 2011 $ 6.3 2012 6.1 2013 7.8 2014 6.7 2015 5.6 Thereafter 277.2 Total $ 309.7

U n i ve r s i t y o f M i a m i B o a r d o f Tr u ste e s a n d Ad m i n i st rat i o n

Phillip T. George 1, 2, 3, 4

Arva Parks McCabe

Marc A. Buoniconti

Leonard Abess 1, 4

Archie L. Monroe M. Lee Pearce

Alfred R. Camner

Chair Chairman Brava, L.L.C.

Vice Chair Chief Executive Officer City National Bank of Florida

Wayne E. Chaplin 1, 4

Vice Chair President and Chief Operating Officer Southern Wine & Spirits of America, Inc.

William L. Morrison 1, 2, 4

Vice Chair Chief Financial Officer Northern Trust Corporation

S E N I O R T R U ST E E S Michael I. Abrams

Director, Miami Policy Group Akerman Senterfitt

Betty G. Amos 1, 2, 3

President The Abkey Companies

Stanley H. Arkin

President The Miami Project to Cure Paralysis

Private Investor

Carlos A. Saladrigas

Chairman and Chief Executive Officer Regis HR Group

Ronald G. Stone 4

President The Comprehensive Companies

Robert C. Strauss David R. Weaver 1, 4

Jose P. Bared

Chairman (Retired) Farm Stores/Gardner’s Super Market

Fred Berens

Managing Director - Investments Wachovia Securities Chairman Emeritus Ryder System, Inc.

Chairman and Chief Executive Officer The Continental Companies

G. Ed Williamson II

Chairman and Chief Executive Officer Williamson Automotive Group

Thomas D. Wood

N AT I O N A L T R U ST E E S Nicholas A. Buoniconti Alfonso Fanjul

Chairman and Chief Executive Officer Fanjul Corp. and Florida Crystals Corporation

Steven J. Green

Managing Director Greenstreet Partners

Charles E. Cobb 1, 4

Senior Managing Director and Chief Executive Officer Cobb Partners, Limited

Nicholas A. Crane

Carlos M. Gutierrez

Chairman Global Political Strategies APCO Worldwide

Lois Pope

President Nucrane Corporation

Carlos M. de la Cruz, Sr. 4 Chairman of the Board and Chief Executive Officer CC1 Companies, LLC

President Leaders in Furthering Education, Inc.

Alex E. Rodriguez

Major League Baseball Player New York Yankees

Enrique C. Falla, Sr. 2, 3

T R U STE E S

Phillip Frost 4

Jose R. Arriola Adrienne Arsht Hilarie Bass, Esq. 1, 2, 3

Executive Vice President (Retired) Dow Chemical Company/ Guidant Corporation Chairman Ladenburg Thalmann Financial Services, Inc.

Global Operating Shareholder Greenberg Traurig, P.A.

Rose Ellen Greene Arthur H. Hertz 3

Executive Vice President The Batchelor Foundation

Chairman of the Board and Chief Executive Officer Wometco Enterprises, Inc.

David Kraslow

Vice President (Retired) Cox Newspapers

Jon Batchelor

Joaquin F. Blaya Norman Braman

Laura G. Coulter-Jones Edward A. Dauer 1

President Florida Medical Services, Inc.

Paul J. DiMare 1

President DiMare Homestead, Inc.

David L. Epstein

Managing Partner and Chairman Intercap Institutional Investors LLC

Sherwood M. Weiser

Camner Lipsitz, P.A.

Chairman Thomas D. Wood and Company

President Arkin Consulting, Inc.

M. Anthony Burns 3

52 UNIVERSITY OF MIAMI 2010 PRESIDENT’S REPORT

President Arva Parks & Company

President, Chairman and Chief Executive Officer Braman Management Association

Managing Partner Presidential Capital Partners

Richard D. Fain 1, 2

Chairman and Chief Executive Officer Royal Caribbean Cruises, Ltd.

George Feldenkreis

Chairman and Chief Executive Officer Perry Ellis International

Michael B. Fernandez

Chairman and Chief Executive Officer MBF Healthcare Partners, LP

Thelma V. A. Gibson

President Emeritus Theodore R. Gibson Memorial Fund

Barbara Hecht Havenick

President and CEO Flagler Greyhound Track and Magic City Casino General Partner Hecht Properties, Ltd.

Marilyn J. Holifield, Esq. Partner Holland & Knight, L.L.P.

Manuel Kadre, Esq.

Gold Coast Beverage Distributors

Bernard J. Kosar Jr. Jayne Sylvester Malfitano Robert A. Mann Roger J. Medel 1 Chief Executive Officer MEDNAX

Stuart A. Miller 2

President, Chief Executive Officer and Director Lennar Corporation

Joshua W. Moore Judi Prokop Newman Jorge M. Perez Founder, Chairman and Chief Executive Officer The Related Group

Aaron S. Podhurst 1 Senior Partner Podhurst Orseck, P.A.

Matthew E. Rubel

Chairman, Chief Executive Officer and President Collective Brands, Inc.

Steven J. Saiontz 1 Eduardo M. Sardiña Maria Lamas Shojaee Chief Executive Officer Shoma Group

Laurie S. Silvers, Esq. 1 President Hollywood Media Corp.

H. T. Smith Jr., Esq. 1 H. T. Smith, P.A.

Steven Sonberg, Esq. Managing Partner Holland & Knight, L.L.P.

E. Roe Stamps, IV 1

Founding Managing Partner Summit Partners

Bruce E. Toll

Edward W. Easton

Jacqueline R. Menendez

Gloria Estefan

Nerissa E. Morris

Chairman and Chief Executive Officer The Easton Group Estefan Enterprises, Inc.

Peter T. Fay

Paul M. Orehovec

David I. Fuente

John R. Shipley

Board Member Office Depot, Inc.

Florence Hecht

General Partner Flagler Greyhound Track Director Southwest Florida Enterprises, Inc.

Patricia W. Toppel

Attorney Berger Singerman

Barbara A. Weintraub

Marilyn Segal Robert H. Simms

General Partner Toppel Partners

EX OFFICIO MEMBERS

President and Chief Executive Officer Bob Simms Associates, Inc.

Patrick K. Barron

Gonzalo F. Valdes-Fauli

Dany Garcia 1, 3

Marta S. Weeks Frances L. Wolfson Charles J. Zwick

President, Alumni Association First Vice President and Chief Operating Officer Federal Reserve Bank of Atlanta President-elect, Alumni Association Chairwoman, White Buffalo Media

Fredric A. Hoffman, Esq. Immediate Past President Citizens Board Cohen, Chase, Hoffman & Schimmel, P.A.

Peggy M. Hollander

Chairman Broadspan Capital

CO R P O R AT E O F F I C E R S Donna E. Shalala President

Thomas J. LeBlanc

Executive Vice President and Provost

Pascal J. Goldschmidt

President, Citizens Board Managing Partner The Succession Group

Senior Vice President for Medical Affairs and Dean, Leonard M. Miller School of Medicine

Jacqueline F. Nespral

Joseph Natoli

Immediate Past President, Alumni Association Anchor WTVJ – NBC6

Donna E. Shalala

1, 2, 3, 4

President University of Miami

EMERITI MEMBERS Bernyce Adler

Executive Vice Chairman Adler Group, Inc.

Paul L. Cejas

Chairman and Chief Executive Officer PLC Investments, Inc.

Victor E. Clarke

President and Chief Executive Officer Gables Engineering, Inc.

Vice President for Human Resources and Affirmative Action

Senior United States Circuit Judge United States Court of Appeals, Eleventh Circuit

Fredric G. Reynolds Frank Scruggs, Esq.

Vice Chairman Toll Brothers, Inc.

Vice President for University Communications

Senior Vice President for Business and Finance and Chief Financial Officer

Sergio M. Gonzalez

Senior Vice President for University Advancement and External Affairs

William J. Donelan

Vice President for Medical Administration and Chief Operating and Strategy Officer, Leonard M. Miller School of Medicine and University of Miami Health System

Vice President for Enrollment Management and Continuing Studies Vice President of Finance and Treasurer

Aileen M. Ugalde

Vice President, General Counsel, and Secretary of the University

Patricia A. Whitely

Vice President for Student Affairs

Aida Diaz-Piedra

Associate Vice President and Controller

Leslie Dellinger Aceituno Assistant Secretary

DEANS Elizabeth Plater-Zyberk School of Architecture

Leonidas Bachas

College of Arts and Sciences

Barbara E. Kahn

School of Business Administration

Sam L Grogg

School of Communication

Isaac Prilleltensky School of Education

James M. Tien

College of Engineering

Terri A. Scandura Graduate School

Patricia D. White School of Law

William D. Walker University Libraries

Roni Avissar

Rosenstiel School of Marine and Atmospheric Science

Pascal J. Goldschmidt

Leonard M. Miller School of Medicine

Shelton G. Berg

Phillip and Patricia Frost School of Music

Nilda P. Peragallo

School of Nursing and Health Studies

William Scott Green

Undergraduate Education

Rudy Fernandez

Vice President for Government Affairs

*As of September 13, 2010

Larry D. Marbert

Members of board committees authorized to conduct business and financial affairs of the University:

Vice President for Real Estate and Facilities

Member of Executive Committee Member of Finance Committee Member of Audit and Compliance Committee 4 Member of Trustee Service Committee 2

W W W . M I A M I . E D U

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