February 7, 2003

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THE INDEPENDENT DAILY AT DUKE UNIVERSITY

Duke Corporate Ed turns Ist yearly profit Univ. cuts

Fuqua spin-off avoids national trend as it eyes expansion in Seoul By KEVIN LEES The Chronicle

After looking at his company’s earnings last quarter, Blair Sheppard was able to deliver the University a nice holiday present—a $1 million check from Duke Corporate Education. Sheppard, CEO of Duke CE, the customized executive education venture and spin-off from the Fuqua School of Business, said the corporation made enough money in the last two quarters of 2002 to pay Duke $1 million of the $5 million it owes the University for its royalty obligations and other start-up costs. “It’s the first time we’ve given money back to the University,” Sheppard said. “We have enough cash flow that we probably could have done a little better than that.” Executive Vice President Tallman Trask said the money will go to the busi-

Administrators are seeking to stabilize spending from the University’s endowment as investment returns stay low. By KEVIN LEES The Chronicle

ness school as operating revenue. The company, competing in a tight economy in which relatively few people are seeking executive education, has seen three quarters of consecutive growth and

earnings—be-

fore

interest,

taxes, deprecia-

tion, amortization and Duke royalty of $1,526 million, including

a

$469,000 profit in the last quarter of 2002. By contrast, the company lost money in every quarter of 2001

Tallman Trask

endowment payout rate

and in the first quarter of 2002. “We’re growing, but we’re not out of the woods yet,” said Trask, who has the

final authority over Duke CE. Sheppard said he hoped to give the University another $3 million by the middle of the year. “My expectation for the subsequent

year is to meet our entire obligation, and we make money on top of that,” he said. “It’s been a hell of a year. Everybody else is shrinking and we’re growing.” Last month, Fuqua officials announced a wide-ranging partnership See DUKE CE on page 9

To ensure that the economic downturn does not adversely affect the stability of growth in the University’s endowment spending, administrators have decided to lower the endowment’s payout rate from 10 percent to about 3 percent. The payout rate—the percentage of the endowment that contributes to the operating budget—is the cap on how much of the endowment can be spent in a given year. Administrators estimated that reducing it will mean the University will have tens of millions of dollars less to spend in the next fiscal year. Executive Vice President tallman Trask said that, ideally, the payout rate is determined so that it reduces the likelihood in the future that the University would have to cut the rate to zero or have negative growth. When the endowment made a whopping 58.8 percent return on its investments three years ago, the 10 percent figure was especially prudent planning, administrators said. Because the University did not spend all of the reSee ENDOWMENT on page 10

Med school offers taped lectures online By WHITNEY ROBINSON The Chronicle

If you could watch all your classes on a personal computer in the comfort of your room, would you ever sit in a lecture hall again? First-year medical students at the School of Medicine now have the ability to access their lectures online, raising questions regarding possible declines in student attendance and how they are utilizing the new technology. Students and professors have so far expressed divided opinions on the system’s merits. [l]f you can’t make it to the lecture, you can log on to the site and [seel the lecture,” said Dr. Edward Buckley, associate dean of curriculum development. “Or, if you’re studying anatomy and you’re like, ‘Jesus, what did he say?’... and your notes don’t make any sense, you can go back and log onto the websites to find the lecture—every last one of them is taped and “

on the web.”

The first-year lecture hall at the School of Medicine is outfitted with several built-in cameras and microphones, said Tom Hurtgen, director of Educational Media Services. The equipment is connected via a central control room, where lectures are assembled, switching between graphics and video IllQiffp iiibluc

using high-tech touch screen controls. “Usually when students are finished [with the class] they can access the file within 15 minutes,” Hurtgeri said. The new system of recording lectures replaces the antiquated and unpopular VHS recordings and audio tapes. These video streams, located on Blackboard, cover all first-year medical school lectures, from microanatomy to neurobiology. Most students are using the system and praising its convenience. Hurtgen said results from software that analyzes web activity shows that “every lecture got looked at a significant number of times by more than half the class.” “It’s fantastic! I love it. I use it everyday. It gives you a little more control over how you want to spend your time,” said Hui Xue, a first-year medical student. “I try to go to class whenever I can, but ifI have a conflict or have to go to the dentist, I know I’m not missing anything.” Buckley said there are concerns about a decrease in the number of students attending class, but the ultimate decision to attend is in the hands of the students. “There's been an issue about [missing the lectures],

The Samuel Dußois Cook Society honored William Chafe, dean Qf the facujty of arts and sciences, and Dr. Charles Johnson, professor emeritus of medicine. See page 3

See VIDEO LECTURES on page 7 Last year, the Department of Chemistry changed how its introductory course was taught. Following mixed responses, the department is still fine-tuning the class. See page 3

Duke sophomore Cameron Levy will appear tonight on The Price is Right Million Dollar Spectacular, although he cannot yet say what he w0n..,. See page 4


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