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> Celebrating a decade of excellence and historic progress

2 0 1 1 p r e s i d e n t ’s r e p o r t

Message from the President

Reflections on a Remarkable Decade “Are we there yet?” It’s the classic backseat query on family road trips. When it comes to the eventful journey our University of Miami family is taking together, the answer is always “Not just yet.” Indeed, for dynamic institutions like ours, “there” seems always to be just down the road and around the next bend. We are continually making key decisions at major crossroads and fine-tuning our itinerary as unexpected opportunities and unforeseen challenges emerge. A number is just a number, and the imaginary odometer measuring the ground we have covered on our shared excursion reflects not only previous destinations but ongoing discoveries. Still, my tenth anniversary on the job here at UM represents a mile marker of sorts—an opportunity to reflect on where we’ve been and where we’re going.

Ten years ago I spoke of our mission in terms of preparing students for assuming roles as tomorrow’s leaders. Advancing knowledge in academic disciplines across the board. Moving into the top ranks of biomedical discovery and patient care. And serving as an active partner in our community’s future. I committed the University to “sowing seeds of excellence” in every sphere: from classrooms to concert halls, theatres to research labs, art studios to athletic fields. Today we have achieved all these goals, and so much more. The magnificent successes of the past decade are the work of many hands, and any laurels earned do not rest solely on the shoulders of one administration or even one generation.

University University of Miami of Miami 20112011 President’s President’s Report    Report    1

At my inauguration ceremony ten years ago, I described the University as the beating heart of Miami, and Miami itself as “el mundo”—the world. Today, having lived for a decade in this beautiful, diverse, and endlessly fascinating region, I still see our city and our place in it that way— more vividly than ever.

Standing on Strong Shoulders As the University of Miami’s fifth president, I inherited a strong and stable foundation from my predecessors. Their vision of what the University could be and their steady strides toward realizing that

$1.4 billion, Momentum had a truly transformational impact on the University.

potential—often in the face of challenges, from ravaging hurricanes

Momentum also broadened and deepened the University’s relation-

allowed me the rare opportunity to assume leadership of an ener-

organizations gave some $376 million during the campaign, paving

to social upheavals, that would have daunted less stalwart souls— 2    University of Miami 2011 President’s Report

goal a year ahead of schedule and ultimately raising more than

getic institution that was already on the move toward unprecedented excellence and national acclaim.

ships with its many devoted constituencies. Alumni and alumni-led the way for high-profile achievements and enhanced pride for ’Canes everywhere.

Much credit is also due to the University of Miami Board of Trust-

Advancing our Vision

our highest aspirations and support our finest accomplishments.

continues. Fundraising totals for the fiscal year ending May 31, 2011

ees, the community leaders and committed partners who share

True to the campaign’s name and lasting impact, our momentum

I especially want to thank the board chairs whose guidance and

came to $172 million, nearly double the $86.2 million raised a decade

fellowship have been so invaluable: Carlos M. de la Cruz Sr.; Phillip

Frost; Dean C. Colson; Marta S. Weeks; Phillip T. George; and current chairman Leonard L. Abess—who, after his grandfather, Arthur A. Ungar (in whose honor the Ungar Building is named), and his father, Leonard Abess, is a third-generation UM trustee.

The University embraces its community—a close relationship that

earlier in FY 2002. Just as importantly, for ten years in a row, the University of Miami has been awarded the top, four-star rating

for sound fiscal management from Charity Navigator, one of the

nation’s leading independent charity evaluators. Fewer than 1 percent of the charities rated by this organization have received such consistently outstanding ratings.

imbues everything we do—and the community has responded in

This vigilant stewardship has been complemented in recent years

success of the campaign that inspired such generosity during

priorities in four key areas: the undergraduate experience, graduate

turn. That is the simple yet powerful secret behind the historic the first seven years of my presidency.

Momentum: The Campaign for the University of Miami presented a bold vision of propelling the University toward distinction as one

of the nation's leading research universities. Reaching its $1 billion

by a comprehensive strategic plan that identifies institutional

and research programs, and faculty development, as well as the infrastructure needed to support these endeavors.

In all of these areas, we are making exciting progress. We’re decod-

ing the human genome and shedding light on hemispheric climate

Our ever-brighter student body reflects the University’s bold spirit, and our institutional commitment to quality rather

patterns. We’re fostering entrepreneurial approaches to learning

numbers, they fulfill their marvelous potential: Over the past decade,

grams that meld disciplines in novel ways to meet unprecedented

has jumped from 63 to 80 percent.

and nuanced explorations of the humanities. We’re creating pro-

challenges. And we’re opening up the unforgettable experience of

our six-year graduation rate—a key measure of student success—

a UM education to greater numbers of deserving students.

The University’s research mission is stronger than ever. We currently

Our ever-brighter student body reflects the University’s bold spirit.

(compared with just over 1,700 in 2001) as well as more than 5,500

For our fall 2011 cohort of about 2,150 enrolled freshmen, we received

about 28,000 applications—nearly twice the 14,721 received in 2001. During the same timeframe, the average SAT score of incoming

freshmen rose from 1190 to over 1315, while those in the top 10 percent of their high school classes now compose 71 percent of our

are home to more than 2,800 extramurally funded research projects graduate students and postdoctoral trainees. Faculty research and

sponsored program expenditures increased by more than 75 percent over the past ten years, from $202 million in 2001 to nearly $361 million in last year’s extremely competitive funding period.

freshman class, up from 51 percent a decade ago.

We recently surpassed $150 million in National Institutes of Health

Aptitude for Achievement

medical school in the state, while our National Science Foundation

Because we have made an institutional commitment to keep the size of our incoming student body stable, we have been able to focus on

quality rather than quantity, thus ensuring a superb student experience. Our students come from varied socioeconomic backgrounds, all walks of life, and more than 110 countries. And, in increasing

(NIH) funding University-wide and have become the top NIH-funded grant funding increased by 5 percent University-wide over the past year. These gains are a direct reflection of our recruitment of top

physicians and highly productive scientists from across the nation; the number of University faculty in prestigious national academies has risen from one to eight since my arrival at UM.

University of Miami 2011 President’s Report    3

than quantity has ensured a superb student experience.

Sharing Stellar Successes This September we were delighted to learn that we were ranked

universities for 2012 by U.S.News 4    University of Miami 2011 President’s Report

& World Report, reflecting a dramatic rise of some nine spots in just one year—and an amazing total of 29 spots since 2001. UM was the only institution in the top 50 to make such a signifi-

the University on the intellectual frontier of this industry that

40

UM RANKING

38th among the nation’s best

Defining the Future”—and placed

U M R A N K I N G S BY U . S . N E WS & WO R LD R E P O RT 30

touches all of our lives. 50

Not pausing for a moment, in

60

February we unveiled the results

of a major yearlong expansion of

70

80

the Patti and Allan Herbert Well2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

YEAR RANKING PUBLISHED

cant advance in this prestigious ranking during the past year. This achievement directly reflects our steady climb to excellence, and

the credit goes to our trustees, faculty, student body, staff, alumni,

2011

ness Center. Funded primarily

by a generous gift from alumni

and original center patrons Patti and Allan Herbert, the project has been very well received by our campus community.

parents, and all our supporters over the years. It is a tribute to all

Driving Distinction

a success story for not just the University but the entire South

deans who bring scholarly distinction and pioneering leadership to

who believe in the University of Miami and quality education, and

Back on the academic front, this summer we welcomed two new

Florida community.

the U. Gregory J. Shepherd, dean of the School of Communication,

This wonderful recognition capped a banner year here at the University. Our UM family came together in October 2010 to celebrate the opening of the Robert and Judi Prokop Newman Alumni Center, a gracious gathering place for loyal ’Canes built entirely with alumni contributions. Just a few months later, 2011 wasn’t even two weeks old when we

orchestrated our second highly successful Global Business Forum.

Organized by the School of Business Administration, the Universitywide conference featured an impressive lineup of corporate, policy, and thought leaders examining “The Business of Health Care:

was previously dean of the Scripps College of Communication at Ohio University. He brings the big-picture perspective needed to nurture the next generation of communication professionals at the school, which recently celebrated its 25th anniversary.

In August Eugene “Gene” Anderson became dean of the School of

Business Administration. Most recently as associate dean for aca-

demic affairs at the University of Michigan’s Ross School of Business, he spearheaded a variety of forward-thinking programs and initiatives, building a wealth of experience and insight that dovetail beautifully with the school’s goals and areas of opportunity.

Hurricane Athletics also recently recruited several new leaders:

detail to meet the needs and support the aspirations of UM’s highly

and men’s basketball head coach Jim Larranaga. All are passionate

nation of our beloved Rathskeller when it opens in 2013.

athletics director Shawn Eichorst, football head coach Al Golden, about the Hurricanes and fully committed to encouraging our

student-athletes toward distinguished performance in the classroom, on the playing field, and in life.

foot R+D Building One, the first phase of the University of Miami

Promising to make a major contribution to the well-being of the entire Gables campus community and beyond is a multi-specialty UHealth – University of Miami Health System clinic. Slated to open in 2013, the

new clinic will serve students, faculty, staff, and the surrounding area.

Life Science & Technology Park. In addition to providing sustainable,

In the pages that follow, you’ll find highlights from this amazing

opment of life-enhancing medical and technological discoveries,

sampling of hundreds of noteworthy activities and achievements.

state-of-the-art infrastructure that fosters the discovery and develthe park is an engine of economic progress for our community.

We are also moving ahead on important projects on our Coral Gables campus, thanks to the historic and far-reaching University Campus

decade at the University of Miami. They are, necessarily, only a

Interwoven among each and every one of them are the countless

moments of inspiration, discovery, persistence, collaboration, compassion, and courage that make up the life of a great university.

District development plan we reached last year with the City of

Meanwhile, even as we look back, tomorrow tugs at our sleeve and

out winners in this agreement, which I count among the proudest

ments that turn “what ifs” into “why nots.” As one of the nation’s

Coral Gables. The city, the community, and the University all came achievements of my presidency. We now have a thoughtful and

comprehensive road map to guide our campus improvements for many years into the future. Reshaping our Future Among the most eagerly anticipated new campus destinations is

our Student Activities Center, on which we have just broken ground.

Made possible by a $20 million lead gift from Fairholme Foundation, the 118,000-square-foot facility features an array of gathering and activity spaces. A dazzling campus destination designed in every

pulls us forward. It urges us to make the powerful, focused commitleading research universities, replete with our signature energy and passion, we are making the breakthroughs that reshape the road ahead even as we travel it.

Yes, it’s true: We’ll never be completely “there.” But the joy is in

the journey—and having such brilliant, dedicated, and tireless companions along for the ride. Donna E. Shalala President

University of Miami 2011 President’s Report    5

This fall saw the dedication and grand opening of the 252,000-square-

involved student community, it will also house a brand-new incar-

> Bright Minds, Brightened Futures Attracting ever more dynamic and accomplished applicants, UM is evolving to meet our students’ demand for learning experiences that reflect their passions and prime them for real-world leadership. Metrics of Success The University of Miami has

Times, Hispanic Business, and Thomson Reuters.

soared over the past several

Committed to a student body of

a variety of prestigious rankings.

traditions, and socioeconomic

years, a trajectory recognized in U.S.News & World Report placed

varied ethnic heritages, cultural

backgrounds, the University has won consis-

tent recognition for its

diversity from organizations

including The Princeton

Review and

the National Research

Council. Just

6    University of Miami 2011 President’s Report

>  Athula Wikramanayake, a faculty member in the College of Arts

and Sciences’ Department of Biology, guides undergraduate students examining sea urchins in the Howard Hughes Medical Institute laboratory. These mentored research experiences often inspire students to pursue

compiled by Forbes, Financial

since 2001, enabling us to

select the most talented and highly motivated students.

The number of freshmen in

versity’s resources to build their futures and make a positive im-

pact on the world around them. The Adventure  

the top 10 percent of their high

of Learning

percent in the past ten years,

In response to upper-echelon

climbed from 1190 to over 1315.

tional experiences, the University

school class rose from 51 to 71

while their average SAT scores

Meanwhile our six-year gradua-

tion rate (a standard measure of

success in higher education) has risen from 63 to 80 percent.

students seeking powerful educahas over the past several years

expanded its portfolio of distinctive, cross-disciplinary programs that combine learning with

environment that encour-

for all students;

private institutions of higher

on higher-ed “best of” lists

increased by about 90 percent

provides an

Best Colleges”—a dramatic

regularly earn top honors

how our students use the Uni-

the real measure of success is

tantly, UM

it is ranked by the Education

Several UM programs now

undergraduate applications

shining brightly on the U,

as impor-

the University at No. 38 in

climb of 29 spots since 2001.

Beyond such impressive metrics,

ages success

scientific careers.

the 2012 edition of “America’s

With the global spotlight

Trust among the top half-dozen learning nationwide with little or no disparity in graduation rates among black, Hispanic, and white students.

>  Susan Amat (right), director of UM’s entrepreneurial resource, The Launch Pad, provides

pointers on marketing a colorful new line of clothing and textiles created by University of Miami alumni and aspiring entrepreneurs Trevor Cowan and Jay Hirschfeld.

A Decade to Remember High-impact high points from an amazing ten years

’01

>  Diamond Jubilee UM unveils “Bold Beginnings, Bright Tomorrows,” a yearlong series of events celebrating the University’s 75th birthday.

experienced mentors. The White House adopted The Launch Pad model as part of its “Startup

America” initiative to revitalize distressed regions nationwide

Sarah Meltzoff

over the next five years.

>  Students in the University’s UGalapagos program are fully immersed in the culture and natural environment of this fragile archipelago of volcanic

islands that are home to an amazing array of species and have fascinated visitors since Charles Darwin.

>  The Beyond the Book program in the

College of Arts and Sciences allows enterprising students to design unique learning experiences

adventure, altruism, practical experience, and entrepreneurship. At the Abess Center for Ecosys-

tem Science and Policy, launched in 2006, students build the

scientific knowledge and political acumen to effectively lead environmental organizations

ter of Real Estate Development

and Urbanism, founded in 2009, combines the strengths of the

in 2010, the program allows

students to earn a J.D. from the School of Law and a Master of Music in Music Business and

Entertainment Industries from the renowned Frost School of Music—then

ment with community planning and design.

Equally innovative is the joint degree program in law and

music business, the first of its

Success in our globalized world

tional events, and a network of

as Prague, the Galapagos Islands, Rome, and Galilee, students are

exposed to unforgettable learn-

ing experiences, whether discovering rare wildlife or the glories of the Renaissance. Steadily

expanding its partnerships with sister institutions around the

the nation’s

vanguard of

>  Taking the Oath Donna E. Shalala is inaugurated as UM’s fifth president, delivering an inspiring speech that commits the University to excellence in all areas.

that study abroad does much to own programs in locations such

to build

has been at the

demands the broad perspective build. Through the University’s

a vital tool

the University

impact of rubber agriculture on the nation’s

expert advice, varied educa-

wear to software can access

ship is widely

economy, and

who motorbiked through Laos to examine the rural farmers.

industry.

viewed as

like that undertaken by Miles R. Kenney-Lazar,

in market sectors from swim-

high-profile

and law to create a world-class mentals of real estate develop-

and alumni starting enterprises

running in this

Entrepreneur-

program that blends the funda-

Pad, created in 2008, students

hit the ground

University’s schools of architecture, business administration,

this trend. Through The Launch

world, the University now boasts

>  Livable community design and sustainable development are the

goals of the popular multidisciplinary Master of Real Estate Development and Urbanism (MRED+U) program, led by associate professor of

more than 80 agreements with universities in 32 nations to

provide curricula in disciplines

University of Miami 2011 President’s Report    7

and initiatives. The popular Mas-

kind in the country. Launched

from international law to marine science.

architecture Charles Bohl.

>  Collegiate Triumph The Miami Hurricanes beat the Stanford Cardinal to capture the program’s fourth College World Series win.

>  Productive Union UM partners with Florida International University to establish the Miami-Florida European Union Center of Excellence.

Through the Beyond the Book scholarship program in the

College of Arts and Sciences,

made possible by a Momentum campaign gift, undergraduate

students can apply for a stipend to support a self-directed

learning project outside the

>  The third annual Clinton Global Initiative University meeting, hosted by UM and led by President Bill Clinton (left), brought together more than 1,300

classroom. Students have risen

students from all 50 states and 83 countries to create plans for positive social change.

ing array of scholarly endeavors

The three-day conference,

than 1,000 action commitments

together students devoted to

California to rural Laos.

Clinton, drew more than 1,300

the meeting.

their experiences and insights.

to the challenge with a fascinatin locales ranging from coastal

Enhancing Involvement A University of Miami education is a truly immersive

experience, offering students

constant exposure to learning and diversity, urgent issues, and exciting opportunities.

The third annual Clinton Global Initiative University meeting in April 2010, hosted by UM, was a prime example.

founded and led by President Bill students from 83 countries and

accepted for development at

all 50 states, along with univer-

Community service is a

and national youth leaders. Their

the Butler Center for Volunteer

sity presidents, administrators,

goal was to develop service projects known as “commitments to

action” for positive change along key themes such as education, the environment and climate

change, peace and human rights, poverty, and global health. UM

student proposals accounted for a remarkable 250 of the more

highlight of life at UM, and Service and Leadership

Development maintains a

database of more than 600

community partners that benefit from students’ energetic efforts on their behalf. The center also houses more than 40 student-

run service and advocacy groups such as Amnesty International, Best Buddies,

initiative, encourages students to get where they need to go on two wheels rather than four.

The Butler

In such an outward-looking

STRIVE

surprise that the environment

Center’s

(Serving

Together

Reaching Integrity,

Values, and

Engagement), a living and

learning group founded in

>  A closeknit community of students share their passion for community service in STRIVE, an on-campus housing

>  UBike, part of the University’s Green U

and Habitat

for Humanity. 8    University of Miami 2011 President’s Report

community service to share

2007, brings

learning environment, it’s no

itself is a top priority. In 2005

the University launched Green U, a comprehensive program

to reduce its carbon footprint

through energy conservation,

widespread recycling initiatives, the use of ecologically friendly

products, and sustainable building practices.

experience that focuses on leadership and civic engagement.

’02

>  Rose Bowl Rout The Miami Hurricanes football team defeats the Nebraska Cornhuskers in the Rose Bowl, claiming the program’s fifth national championship.

>  Hope and Healing The Braman Family Breast Cancer Institute, made possible by a gift from the Norman and Irma Braman Family Foundation, is launched.

Green options for getting

championship in Pasadena,

Expanding Opportunity

been rolled out in recent years

including an NCAA Tourna-

UM student Mike Michel, a University of Miami Hammond

basketball team.

hardworking Haitian-American mother and UM President

around the Gables campus have to enthusiastic student support. The University has encouraged students to make more use

and continued with accolades ment berth for the women’s

of two-wheel transport by

Some 18 different sports com-

bike racks, and offering free U-

have seen remarkable achieve-

improving bike paths, adding

locks for students who register their bikes with UM Police. For greater travel distances, any

member of the UM community can rent a hybrid vehicle from the campus Zipcar fleet.

pose Hurricane Athletics, and all ments over the past decade.

Indeed, the glory has spanned nearly every sport as student-

athletes in tennis, track and field, and diving have won champion-

ships and the All-America status that goes along with them. The exciting world of UM

Athletics has also been one

of academic excellence, with

’Canes sports teams regularly posting some of the nation’s

top Academic Progress Rates in recent years.

achievements, UM joined the Atlantic Coast Conference in 2004, recognizing that the

and field. She won a silver medal in the 100-meter race at the 2004 Olympics and also

a rising junior who is majoring in political

science, earned the schol-

arship through his stellar high school academics and strong personal

commitment to success. The Office of Academic Enhancement is home

to the Hammond Scholarship, which provides full tuition at UM to

outstanding students

from underrepresented

backgrounds. The office was founded in 2007 to nurture students’ aca-

school’s switch to the league

would bring in more revenue for its athletic programs,

bolster Olympic sports, and place the school among

its Prestigious Awards

and Fellowships services, which help students

>  John Barker (center), director of the Office of Academic Enhancement,

helps outstanding students such as Hammond Scholar/Coca Cola Foundation first-generation scholarship recipients Mike Michel and Lindsey Stavola pursue challenging academic and career opportunities.

identify and successfully

apply for these extremely competitive awards, were launched

in 2009. The office also administers the University’s acclaimed Honors Program, an academically challenging course of study for exceptional undergraduate students.

competed in the 2008 Summer Games.

academic powerhouses like

Vividly reflecting the University’s solid support of aspiring

Fields of Endeavor

in 2008 the UM football team

Program grantees, compared with a total of two grantees

Duke and Georgia Tech. And

It started with a College World Series title in 2001, picked up steam with a Rose Bowl vic-

moved to Sun Life Stadium,

an NFL venue ranked among the best in the league.

tory and football national

>  All-Star Gift Alex Rodriguez announces a $3.9 million gift to help renovate the UM baseball stadium and fund an annual scholarship at the University.

young scholars, last year alone UM had three Fulbright

over the previous three years. In the recently completed

2011-12 selection cycle, six UM students whose interests range from Afro-Uruguayan candombe drumming to Antarctic

climate trends were selected as grantees in the prestigious international educational exchange program.

’03

University of Miami 2011 President’s Report    9

numerous honors for her prowess in track

Donna E. Shalala. Michel,

demic and career success;

Among other notable

>  Lauryn Williams, B.B.A. ’05, has earned

Scholar, draws inspiration from two remarkable women: his

>  Weather or Not The Center for Southeastern Tropical Advanced Remote Sensing, which evaluates satellite data on meteorological and environmental phenomena, opens on UM’s Richmond campus.

> Enlightening Quests From perfecting stem cell therapy that heals injured hearts to probing sociopolitical issues across the hemisphere, research and scholarship at the University of Miami have made great strides in excellence and impact. An Institution-Wide Endeavor A commitment to nurturing

leading-edge research spans

every corner of the University

and the full range of academic

sophisticated shared computing

and support resources to genetic epidemiologists, aerospace

engineers, meteorologists, and other scientists.

An invaluable partner to UM

research efforts is University of Miami Libraries, which in the

past decade has taken bold steps

to deepen and digitize important collections while becoming a vital destination for research

and collaboration. Today, with

holdings surpassing 3.4 million volumes and 80,000 current

>  Akira Chiba, a professor in the College

of Arts and Sciences’ Department of Biology,

electronic and print serials, it is

one of the top 50 research library systems in North America.

10    University of Miami 2011 President’s Report

received an NIH stimulus grant to study and map the intricate interactions among living proteins in unprecedented detail.

The remarkable results of the University’s commitment to

research leadership can be seen

disciplines. Bolstered by an enor-

in a comprehensive assessment

and a heavy investment in infra-

released in 2010 by the National

mous influx of scientific capital structure, the University offers

investigators access to a variety of important technologies.

Supercharging UM research activities is the Center for Computational Science, a

University-wide resource

launched in 2007 to provide

>  Hoop Dreams The $48 million, 8,000-seat Convocation Center, later renamed BankUnited Center, opens on the Coral Gables campus with a men’s basketball victory over UNC.

of U.S. doctoral programs

Research Council (NRC). The NRC rated four University of Miami programs in the top quartile

of their fields nationwide and 12 in the top half—a dramatic improvement over UM’s

showing in the previous NRC rankings, published in 1995.

>  The Center for Computational Science is a cutting-edge shared intellectual and technological

resource for more than 1,000 University researchers working on a variety of complex, highly data-driven projects.

>  A New Home for Judaic Studies UM dedicates the new home of The Sue and Leonard Miller Center for Contemporary Judaic Studies.

>  Building Momentum

The Momentum campaign kicks off with a $1 billion goal.

Patrick Farrell/Miami Herald

>  A growing number of University of Miami Libraries holdings and

collections in fields ranging from fine art to botanical studies are now available digitally, facilitating access to these important resources for scholars across the University and beyond. At Health Care’s   Leading Edge At the Miller School’s John P.

Hussman Institute for Human Genomics, researchers are leveraging cutting-edge

technologies to realize the

potential of the Human Genome Project. Age-related macular degeneration, autism, and

Parkinson’s disease are among

orthopaedics. Among the

>  Margaret Pericak-Vance, director of the John P. Hussman Institute for Human Genomics at the Miller School of Medicine,

and Jeffery Vance, director of genomic medicine at the institute, peer into a liquid nitrogen canister holding tissue samples used in genetic studies of disorders such as Alzheimer’s, diabetes, autism, deafness, and Parkinson’s disease.

most promis-

ing developments in the field

Earthly Insights

director Joshua Hare demon-

At the other end of the scien-

into the hearts of heart attack

of miles above Earth’s surface,

are clinical trials led by institute strating that stem cells injected survivors help normalize the

anatomy and function of injured heart muscle.

the debilitating conditions for

From early detection of disease

geneticist Margaret Pericak-

restoration of lost function,

which teams led by renowned

research partner, Jeffery Vance,

are closing in on better tools for diagnosis and intervention.

With their ability to develop

into specialized tissue, stem cells have the potential to repair en-

tire organs that have been damaged by disease. At the Inter-

disciplinary Stem Cell Institute, founded in 2008, groundbreak-

ing research seeks to exploit this potential in a variety of medical disciplines, from oncology to

>  Gift of Note Phillip and Patricia Frost donate a historic $33 million gift to the University’s School of Music, which is renamed in honor of the philanthropist couple.

harnessing the potential of

satellites capture images of our constantly changing planet.

From rivers that overflow their

banks to menacing storms about to make landfall, these images provide vital information for prediction and protection.

dish-shaped antennae have

provided high-resolution satellite images from across the region

to researchers and disaster relief

coordinators. The work of CSTARS proved especially vital in the

wake of the Deepwater Horizon

and potential environmental

Initiative is designed to help

effects of the resulting oil spill,

make it happen by fostering

the largest offshore spill in U.S.

collaboration among the Miller

many other institutions.

ity opened in 2003, its massive

its images to evaluate the extent

sity’s Biomedical Nanoscience

UM researchers and peers from

such data. Ever since the facil-

several other institutions used

biomedical research. The Univer-

of Arts and Sciences, as well as

CSTARS, is a critical conduit for

researchers and scientists from

priority of contemporary

of Engineering, and the College

Advanced Remote Sensing, or

explosion, as Rosenstiel School

nanobiotechnology is a key

School of Medicine, the College

Center for Southeastern Tropical

history. The University was re-

>  Mesenchymal stem cells are successfully

cently named the lead institution

trials led by Joshua Hare of the Miller School of

given more than $112 million

used to heal damaged heart tissues in clinical Medicine’s Interdisciplinary Stem Cell Institute.

of a major research consortium to study the impact of the spill

and develop new approaches for

responding to future such events.

’04

>  Amazing Operation Surgeons at the University of Miami/Jackson Memorial Medical Center transplant a record eight organs into a 6-month-old baby girl.

University of Miami 2011 President’s Report    11

Vance and her husband and

to localized drug delivery and

tific scale, orbiting thousands

The University of Miami’s

Center for the Humanities,

Understanding

2009, just may

Established in 2007 to bring

With an array

Knight Center for International

founded in

change that. of scholarly

projects and outreach

activities that

bring intellec-

>  Antonio Nanni, professor and chair of the Department of Civil,

tual inquiry to engaging life,

Architectural, and Environmental Engineering in the College of

the center is

Engineering, checks a bridge span in the Florida Keys as part of a

enriching the

research project examining the use of advanced composite materials

region’s cul-

to fortify existing structures. As our nation’s bridges and

The University of Miami Ethics

effective new ways to stabilize

boost when trustee, philan-

these structures and protect

the people who rely on them.

College of Engineering professor Antonio Nanni leads a multi-

university initiative, founded in 2009, that examines the

capabilities of new composites— high-strength, lightweight

materials consisting of various 12    University of Miami 2011 President’s Report

tural climate.

highways age, engineers and

materials scientists are pursuing

combinations of alloys, plastics, and ceramics—to restore civil and military structures and

seeks to develop a new gen-

eration of “smart” structures

that respond to changes in the physical environment.

Nurturing Humanistic Pursuits The birthday of 17th-century

philosopher John Milton is not usually noted with much fan-

fare in South Florida, but UM’s

>  Great Debate UM hosts the first presidential debate between President George W. Bush and Democratic challenger John Kerry.

Programs received a significant thropist, and community leader

Adrienne Arsht made a series of

donations to the comprehensive education, research, and com-

munity service initiative. Arsht’s generosity

Enhancing Global

overlooked stories to light, the

Media uses the UN Millennium Development Goals (MDGs) as a framework for defining the world’s most pressing issues. The center works on major

anchor projects that focus on

underreported issues of global significance, as well as longterm activities addressing multiple MDGs.

>  Receivers at the University’s Center

for Southeastern Tropical Advanced Remote The center’s first anchor project, One Water, documenting the

Sensing provide high-resolution satellite images of the region that aid research and

impact of the global water

public safety initiatives.

International Film Festival and

collaborated with students from

Networks’ Planet Green. For

Asia to build multimedia narra-

crisis, was screened at the Miami broadcast on the Discovery

the recent “My Story, My Goal”

project, 14 UM graduate students

partner schools in Africa and

tives that dramatize the MDGs.

The initiative won a 2011 Best of

ensures that

the programs’

suite of courses, conferences, research projects,

seminars, and

other activities will continue to thrive—

and inspire students to

grapple with

the challenges of living and

working in a

rapidly chang-

>  Mihoko Suzuki (right), director of the Center for the Humanities, reviews a research project with Gema Perez-Sanchez,

associate professor of Spanish in the College of Arts and Sciences.

ing society.

>  New Name, New Era A historic $100 million donation from the family of late businessman and philanthropist Leonard M. Miller renames the medical school in Miller’s honor.

’05

the Web award from the Asso-

awareness, and better relations

ism and Mass Communication.

designated a National Resource

To create synergy among

complementary strengths, the

across the hemisphere, has been Center for Latin America by the U.S. Department of Education.

University of Miami has part-

Through task forces, special

University on two scholarly

of symposia on economic

nered with Florida International initiatives. The Miami-Florida

European Union Center of Excellence was established in 2001

through a grant from the Euro-

reports, and a busy calendar Wes Skiles

ciation for Education in Journal-

and political developments,

business and trade, and U.S. policy and security issues,

the University’s Center for

>  UM professor and underwater explorer Kenny Broad ascends a deep shaft in Dan’s Cave,

one of the world’s most spectacular inland underwater caves, in the Bahamas’ Abaco Islands.

Deep Explorations “You really don’t know what you’re going to find in there,” says Kenny Broad, a professor at the Rosenstiel School of

Marine and Atmospheric Science and director of the Leonard and Jayne Abess Center for Ecosystem Science and Policy. “And that’s the draw.”

Broad is talking about the “blue holes” in the waters off the

Bahama Islands. With their complex chemistry and ancient

life forms, these living laboratories contain provocative clues

to primordial climate patterns and possible impacts of global

>  Curious children peek at photos by UM multimedia graduate student Megan Garner, who

warming; the resulting insights could help guide environmental policy.

reported on hunger and poverty in Mathare, Kenya, for “My Story, My Goal.” The project tells stories that personalize United Nations Millennium Development Goals in focus areas such as children’s

Hemispheric Policy (CHP),

Centers, the Miami-Florida EUCE

critical issues affecting countries

promotes teaching, research,

and outreach activities related to the European Union.

Launched in 2011, the Miami

Consortium, which combines the efforts of UM’s Center for

Latin American Studies and FIU’s Latin American and Caribbean Center to promote knowledge,

>  Melding Musical Studies The new Marta and Austin Weeks Music Library and Technology Center, made possible by the philanthropic couple, merges library resources with advanced music production labs under one roof.

founded in 2005, examines

in the Western Hemisphere.

Among the many distinguished speakers who share their

dives he led in these marine time capsules, which drew scientists from several disciplines, were profiled last year in both a PBS documentary and National Geographic cover story.

Back on land, Broad, a devoted educator, enthralls crowded

lecture halls with lessons and anecdotes about his extreme expeditions.

insights at CHP events, General

Cave diver and underwater photographer Nikita Shiel-Rolle,

of the United States Southern

as an undergraduate. “For Bahamians to ensure a sustainable

Douglas Fraser, commander

Command, spoke at the center’s Sixth Annual Latin America Conference in May.

A.B. ’10, who is from the Bahamas, took part in the research future,” she says, “we need to understand the connection between the blue holes and the ecosystem.”

>  From Bench to Bedside The Miller School of Medicine receives a $13 million grant to establish the Wallace H. Coulter Center for Translational Research.

University of Miami 2011 President’s Report    13

pean Commission. A member of the Network of European Union

Investigating blue holes is a passion for Broad, who this year

was named National Geographic Explorer of the Year. The 150

health, universal education, and HIV/AIDS.

>  It Takes a Village UM breaks ground on University Village, designed to provide housing for 800 upperclass and graduate students.

> Intensive Caring The University’s health care enterprise made dramatic progress as it combined outstanding education, research, and clinical care to improve well-being and expand the frontiers of biomedical knowledge. five South Florida counties, and more than 1,200 physicians. The School of Nursing and

Health Studies has strength-

ened its offerings significantly over the past decade to meet

outpatient clinic in 2009; in

2010 its Deerfield Beach facility underwent a major expansion, building the multidisciplinary

Women’s Center and the Radiation Oncology Center.

urgent societal needs. Among many highlights, the school

implemented an accelerated

BSN program and a Doctor of Nursing Practice degree, and

worked closely with President

>  University of Miami Hospital, which opened in 2007, is a busy center of advanced patient care,

clinical and safety research, and training for tomorrow’s physicians and nurses. Empowered to Excel

14    University of Miami 2011 President’s Report

A bold new era began at the

graduate schools for Hispanics

by Hispanic Business magazine.

Shalala during her leadership

of a major Institute of Medicine study called “The Future of Nursing: Leading Change,

Advancing Health.” Distinction in  

University of Miami in Decem-

To expand access to superb med-

Diverse Disciplines

the late Leonard M. Miller made

the former Cedars Medical Cen-

Across the spectrum of biomedi-

of Miami Hospital has become

scientists are making progress

ber 2004, when the family of

a landmark gift of $100 million to name the medical school.

Under the leadership of Pascal J. Goldschmidt, who became

senior vice president for medical affairs and dean in 2006,

the school has gained interna-

tional stature. This fall the Miller School of Medicine was ranked the No. 1 medical school in the

country for Hispanic students in a 2011 report on the nation’s top

>  Neo-Traditional Resource The School of Architecture dedicates the new Jorge M. Perez Architecture Center, named for the UM trustee whose Momentum gift made it possible.

ical care, the University acquired

ter in December 2007. University a flagship of UHealth - University of Miami Health System, launched in 2008 to provide

advanced patient care powered by the academic and research

strength of the Miller School of

Medicine. The system’s network includes three hospitals, more

than 30 outpatient facilities in

>  The latest imaging technologies are offered

at Sylvester Comprehensive Cancer Center,

which has transformed cancer care in South

cal research, UM physicians and

Florida since its founding nearly 20 years ago.

against mankind’s most dreaded

Bascom Palmer Eye Institute

prehensive Cancer Center,

achievements, such as surgical

conditions. At Sylvester Com-

more than 250 physicians and scientists battle the disease.

In addition to its main facility on the Miller School campus, Sylvester opened a Kendall

>  Land Deal The University and the City of Miami sign a historic land-swap agreement with the Miami charity Camillus House, allowing UM to move ahead with plans for a life science park.

is globally renowned for its

techniques and instruments

that have changed the face of

ophthalmic practice worldwide. In 2009 a team of UM surgeons restored vision to a woman

who had been blind for nine

’06

500 transplant procedures annually, making it one of

the nation's highest-volume

transplant centers. The institute is also one of the few in the world to perform complex

intestinal and multivisceral transplants.

Miller School physicians and scientists have created one of the

>  Interventional cardiologist William O’Neill,

a pioneer in the use of angioplasties and

stents to clear blocked heart arteries, serves as executive dean for clinical affairs at the Miller School and chief medical officer at University

nation’s top units for the fight

against cardiovascular disease. Working in tandem with other

departments as well as Jackson

Memorial Hospital, the division has pioneered major improvements in electrophysiology,

of Miami Health System.

Naomi Cohn, who received two cochlear implants at the University of Miami Ear Institute,

interventional cardiology, acute

is now thriving in school and at home.

and heart transplantation.

The Sweetest Sounds

implantation of her eyetooth

Encompassing some 22 clinical

Little Naomi Cohn didn’t react to sounds; rather than babble,

2011, for the eighth year in a row,

children’s health, including the

out what was wrong with their daughter until they turned to

years in a complex series of

procedures that had never been performed in the U.S., including to support a prosthetic lens. In

Bascom Palmer was ranked the No. 1 hospital in the nation for ophthalmology

stroke intervention, valve repair,

divisions and centers devoted to Batchelor Children’s Research

she shrieked or screamed. Her concerned parents couldn’t find the Miller School of Medicine. There, Naomi was diagnosed with profound deafness and auditory neuropathy.

Institute and the Mailman

The University of Miami Ear Institute at the Miller School’s

by U.S.News &

Department of Otolaryngology is home to one of the world’s

World Report.

hensive support for hearing-impaired youngsters and their

Founded

families through the Barton G. Kids Hear Now Cochlear

in 2007,

Implant Family Resource Center.

the Miami

Transplant Institute, a

Ear surgeon Thomas Balkany, founder of the Miami Ear Insti-

of the Miller

old. Just one year later, she was speaking in full sentences.

tute, performed Naomi’s first implant when she was 18 months

joint effort

She then received an implant for her other ear and is doing

School and Jackson

Memorial Hospital,

performs

more than

fine in a regular school.

>  Eduardo Alfonso, chair of ophthalmology at the Miller School and

The family’s experience with Balkany and his colleagues

director of Bascom Palmer Eye Institute, has developed innovative

approaches to combat sight-threatening ocular infections while leading the renowned institute’s clinical and research activities.

>  $1 Billion and Counting UM surpasses the $1 billion goal of its ambitious Momentum fundraising campaign—and keeps going.

“turned into one of the most amazing parts of our lives,” says Naomi’s mother, Liz Cohn. “When Naomi tells her grandparents, ‘I love you,’ she can hear them say they love her, too.”

>  Research Resource The 15-story, 300,000-square-foot Clinical Research Building opens on the Miller School campus.

>  UM Student Makes History Arjun Parasher becomes the first UM student to be awarded a Gates Cambridge Scholarship.

University of Miami 2011 President’s Report    15

largest cochlear implant programs. It also offers compre-

Addressing Health

Foundation, the Miller School's

Department of Family Medicine

Disparities Across the U.S., being a member of an underserved ethnic

minority is strongly associated with poorer health outcomes,

and South Florida is no excep-

tion. Founded in 2004, the Miller School’s Jay Weiss Center for So-

cial Medicine and Health Equity

and Community Health provides high-quality health care and

residency education at Jefferson Reaves, Sr. Health Center. The

Overtown facility has become

a national model for providing high-quality primary care services to the underserved.

addresses these deadly dispari-

Based in the School of Nursing

Counseling on Adherence and

University of Miami Center

ties through initiatives such as Community Health (COACH), which enlists

and Health Studies, the

of Excellence for Health

community

health work-

ers to provide HIV-positive

patients with lifesaving

education and

>  University programs utilize the utmost in simulation education technologies to achieve the

most important goal in health care: protecting patients. The School of Nursing and Health Studies’ International Academy for Clinical Simulation and Research (above) is one of the first centers of its type. At the Gordon Center for Research in Medical Education, medical students build their diagnostic skills on Harvey, a widely used cardiopulmonary patient simulator created by the 16    University of Miami 2011 President’s Report

Miller School’s Michael Gordon. And at the University of Miami/Jackson Memorial Center for Patient Safety, entire health care teams are trained to work more effectively through highly realistic

support.

The nation’s

largest longterm health

study of His-

panic/Latino populations,

the Hispanic

simulated medical scenarios.

the Miller School is the leading

Health Study compares health

Disparities Research (El Centro)

people from various Hispanic/

five-year NIH grant. The center

risks, practices, and outcomes in

pediatric medical enterprise in the southeastern United

Latino backgrounds. Adminis-

States. In 2011 Holtz Children’s

tered by the Miller School, the

Hospital at UM/Jackson

Miami arm of the study recently

Memorial Medical Center was

published its first findings.

ranked among the country’s U.S.News & World Report.

Health Studies minimester in Chile.

Community

Center for Child Development,

“Best Children’s Hospitals” by

>  A nursing student cares for an infant during a School of Nursing and

>  The Miller School of Medicine is a study site

for the nationwide Hispanic Community Health

In partnership with Jackson

Health System and with gener-

was launched in 2007 with a

fosters collaborative research designed to develop effective

culturally tailored interventions for behaviorally rooted health

conditions, including sexually transmitted infections and

ous support from United Health

Study, one of the largest studies of its kind.

>  Ethical Quest Adrienne Arsht donates $1 million to UM Ethics Programs—at the time, the largest gift supporting ethics programs in Florida.

’07

>  Global Perspective A $10 million grant from the John S. and James L. Knight Foundation launches the Knight Center for International Media at the School of Communication.

substance abuse, that most

severely affect minority groups. Acting Globally A variety of international initiatives are raising the

Miller School’s global profile,

expanding access to lifesaving procedures, spawning produc-

tive research partnerships, and

providing medical students with varied learning opportunities.

The Miller School’s International Medicine Institute (IMI), home

to many of these activities, has

in Abu Dhabi, to open in 2013. Other international ventures include agreements with Indonesia’s Universitas

Padjadjaran and Nepal’s Kist

Medical College and Teaching Hospital to develop shared

global medical curricula for

students and physicians; col-

laborative training programs

with the Himalayan Health Care Organization; and a transplant

hospital in Palermo, Italy—one

of the largest and most successful binational clinical programs to date.

in recent years brought leading-

The School of Nursing and

One of its signal achievements

maintains a strong global

edge cardiac care to Colombia. was the creation of South

America’s first certified program for aortic valve replacement in 2008.

Through the efforts of the IMI,

the Miller School has also been

awarded a competitive contract to provide consulting services for a state-of-the-art hospital

>  Nicholas Namias, director of the UM/Jackson Memorial Burn Center, and case manager Olga Quintana work in the

resuscitation room at Jackson’s Ryder Trauma Center. Health Studies likewise

Partnering for Community Health

orientation. In addition to

The University of Miami Miller School of Medicine and Jackson

minimesters abroad (launched

years to provide outstanding care to the entire community,

the growing array of student

in 2006), partnerships with universities in Chile, and initiatives in Haiti, the school was in 2008

designated a World Health Organization Collaborating Centre

for Nursing Human Resources Development and Patient

of just 11

such centers nationwide.

The collabo-

rating center

places particular emphasis

on joint efforts to improve

patient safety

>  HIV-positive patients in disadvantaged Miami-Dade neighborhoods

regardless of ability to pay. UM faculty have served as attending physicians at

Jackson, a public hospital that is home to world-

class medical programs in critical areas such as

stroke, trauma, and burn care; transplant and

neurological surgery;

neonatal intensive care;

and ear, nose, and throat,

>  The Miller School of Medicine has worked

closely with Jackson Memorial Hospital (above) to provide outstanding community care for more than half a century.

which was ranked among

the nation’s best such programs by U.S.News & World Report. UM faculty physicians train more than 1,000 residents and

fellows annually at Jackson in virtually every medical specialty and subspecialty.

across the Americas.

receive education and support through the Jay Weiss Center’s COACH program.

>  New Home for Nursing Studies The School of Nursing and Health Studies dedicates its magnificent new home, the M. Christine Schwartz Center for Nursing and Health Studies.

>  Clinton, Gore Visit UM Former President Bill Clinton and his second-in-command, Vice President Al Gore, visit UM on consecutive days.

>  Unraveling Genetic Secrets The John P. Hussman Institute for Human Genomics is established at the Miller School.

University of Miami 2011 President’s Report    17

Safety—one

Memorial Hospital have worked together for more than 50

> Attending to our Neighbors Whether providing health care to the underserved, legal assistance to the marginalized, or mentoring to troubled youth, University faculty and students touch our local and global communities in countless ways every day. Health, the initiative last year

Accent on Community

implemented telemedicine at

Sharing both cultural ties and

six of the participating schools;

community goals, the University

thanks to a new grant, the tech-

has always been deeply involved

nology will soon be extended

in the life of South Florida. This

to all nine.

close relationship continues

to flower through a growing

The mobile van operated

that afford unique learning

of Miami-Nova Southeastern

array of programs and services

since 2008 by the University

experiences for students while

University Center for Autism

improving the lives of area

and Related Disabilities (UM-

residents. The ’Canes in the

NSU CARD) provides free

Community website, launched in fall 2009 (www.miami.edu/ canesinthecommunity), high-

lights these programs for com-

munity members and prospec-

18    University of Miami 2011 President’s Report

tive partners and participants. While South Florida’s social

issues are the product of the

region’s unique features, they also mirror challenges faced

screening and evaluation for

>  Nurse Petagaye Andrews cares for a child at Fulford Elementary, one of nine Miami-Dade

schools where students receive on-site primary care as part of the Miller School of Medicine’s

CARD, which serves not only

for future civic leaders.

prevention, and proactive care

disabilities but families and

Improving Health  

Better primary care has

University’s academic resources

and academic performance

community life in South Florida. The initiative, which debuted in 2011 with an initial focus on affordable housing, will

develop practical approaches

>  Addressing disparities With $7 million in national funding, UM launches El Centro, a Center of Excellence for Hispanic Health Disparities Research.

resources offered by UM-NSU

centers provide free services

providing intensive preparation

Office of Civic and Community

in the enrichment of civic and

23-foot-long “clinic on wheels”

to complex problems while

through Outreach

Engagement leverages the

autism spectrum disorders. The is just one of the comprehensive

Dr. John T. Macdonald Foundation School Health Initiative.

by increasingly diverse metro

areas across the nation. The new

children and adults affected by

brightened overall health

among the students at nine Miami-Dade County public

schools, thanks to the Dr. John T. Macdonald Foundation

School Health Initiative. The

program’s school-based health

that emphasize risk assessment, for youngsters

people with autism and related

coping with

acute illnesses and chronic conditions. Led by the

Miller School

of Medicine’s Department of Family

Medicine and

>  The UM-NSU CARD mobile van provides free screening and evaluation

in three South Florida counties for children and adults affected by autism spectrum disorders.

Community

>  UM Hospital Opens UM purchases Cedars Medical Center, a 560-bed facility located in the Miami Health District, and transforms it into University of Miami Hospital.

’08

community-based providers

in Miami-Dade, Broward, and Monroe counties.

The community-based Linda Ray Intervention Center, a

program of the Department of

Psychology in the College of Arts and Sciences, is often the first

step to a better life for families fighting substance abuse and related concerns. Center vans convey residents of nearby

neighborhoods to the facility for therapy sessions and parenting programs, interventions

aimed at infants and toddlers

>  Families coping with substance abuse and other difficulties learn how to create healthier lives for their children through the Linda Ray Intervention

prenatally exposed to cocaine,

Center, a program of the Department of Psychology in the College of Arts and Sciences.

services, and developmental

than four decades ago, residents

brightest freshmen mentor

of Education’s Dunspaugh-

in three South Florida coun-

youngsters from seventh

cational Well-Being Research

specialized Early Head Start screenings.

from underserved communities ties have come to rely on the

screenings and other services

musically inclined at-risk grade into high school.

provided at these popular

Whether encouraging young

student-run Mitchell Wolfson

heritage or providing services to

events. Administered by the

Sr. Department of Community Service (DOCS), the fairs serve

people’s pride in their African

immigrant children, the School

Dalton Community and Edu-

Center, created in 2009, seeks

to address social problems of all

kinds through a comprehensive,

collaborative approach designed to help both individuals and communities thrive.

as the only medical services

the 2,000 attendees each year. Lifting the spirits of seriously

ill people around South Florida,

>  The Mitchell Wolfson Sr. Department of

Community Service (DOCS), led and staffed by UM medical students, coordinates free health fairs in three South Florida counties each year.

students at the University of

Miami’s Frost School of Music

ply their talents in concerts at

several area hospitals through the Ress Family Hospital Per-

formance Program. Other Frost

In the years since a dedicated

School community initiatives

volunteered at a free health fair

which the school’s best and

group of UM medical students in Big Pine Key, Florida, more

>  Clinical Network The Miller School of Medicine launches its comprehensive health care network, UHealth – University of Miami Health System.

include MusicReach, through

>  Frost School of Music students help talented young people succeed in music, studies, and life

University of Miami 2011 President’s Report    19

regularly received by many of

through the MusicReach initiative.

>  Brilliant Creation The Lowe Art Museum dedicates the new 3,500-square-foot Myrna and Sheldon Palley Pavilion for Contemporary Glass and Studio Arts.

>  Fabulous Finale The Momentum campaign draws to a triumphant close, with more than $1.4 billion raised to support programs, students, faculty, facilities, and more throughout the University.

Legal Aid for Neighbors

other institutions and garnered

Bettering the  

national recognition.

Built Environment

devastated Haiti’s capital city

Unique learning opportunities

Well-being in the West Grove

12, 2010, Miller School medical

abound in the law school’s

to the School of Architecture,

When a powerful earthquake of Port-au-Prince on January

teams and other members of

and impressive achievements

clinics. Students working in the

also has been improved thanks which defines its mission in

altruistic as well as architectural terms. The school’s Center for

Urban and Community Design has worked with the Coconut

waterfront, making highly

detailed drawings of parks,

tion of a gay man to his home

20    University of Miami 2011 President’s Report

in the School of Law’s Health and Elder Law Clinic were

helping Haitians living in South Florida to file for Temporary

Protected Status (TPS), which

allows them to live and work legally in the U.S. They were

soon joined by law students

from eight universities across

the nation, including Yale and

Stanford. The program spawned a comprehensive training and processing model for use by

>  Hornsby Returns to His Roots Frost School of Music alumnus and multiple Grammy Award-winner Bruce Hornsby returns to UM to officially launch the new Creative American Music Program, which was funded by an endowment from Hornsby.

marketplaces, water taxi stations, retail shops, and other amenities. More recently, a

collaborative study between

days after the quake, students

in 2009, prevented the deporta-

ing for Hispanic elders living

in Miami’s East Little Havana neighborhood.

Lending a Hand  

the earthquake and tsunami of

for reinvigorating Miami’s

action (see next page). Just ten

to better physical function-

in the neighborhood.

semester developing a plan

Immigration Clinic, established

contact with residents—lead

As the international commu-

ture students spent an entire

the UM community sprang into

ability of passersby to make eye

homeownership through the

In 2007 hundreds of architec-

as a model for similar efforts nationwide.

tural features that increase the

across Hemispheres

creation of affordable homes

Clinic helped Haitians living in South Florida file for permission to stay and work in the U.S., serving

“eyes on the street”—architec-

Grove Collaborative to help

families realize their dream of

>  After an earthquake devastated Haiti in January 2010, the School of Law’s Health and Elder Law

Studies revealed that so-called

the architecture school and the

Miller School’s Center for Family

nity rushed to Japan’s aid after

March 2011, the Bascom Palmer Eye Institute dispatched the

renowned eye hospital’s Vision Van to the Japanese city of

Sendai. Outfitted with ophthalmic equipment and stocked

with eyeglasses donated by Eye

Care Centers of America, the van was used by Japanese ophthal-

mologists and served as a training site for volunteers helping

people with vision problems in the wake of the disaster.

country of Jamaica, which is intolerant of homosexuals.

Other pro bono initiatives at the law school include the HOPE

Public Interest Resource Center,

which facilitates legal advocacy projects in South Florida and

numerous other settings, and

the Center for Ethics and Public

Service, which has spearheaded several programs on behalf of the historic community of

>  UM architecture students spent a semester in 2007 developing detailed proposals to

reinvigorate Miami’s waterfront.

West Coconut Grove.

’09

>  Getting Down to Business The School of Business Administration convenes the University’s highly successful inaugural Global Business Forum.

With the

University’s

location at the crossroads of

the Americas, activities in

Latin America are a natural

injured survivors.

Engineering’s

Helping Haiti Heal

without Bor-

Within a day of the powerful earthquake

for example,

Miller School of Medicine teams arrived

the College of Engineers

ders chapter, helped a

Peruvian

village repair

>  A specially equipped Vision Van sent by Bascom Palmer Eye Institute

to Sendai, Japan, helped area residents coping with vision problems in the wake of the earthquake and tsunami of March 2011.

damage to

the pipes that

with nursing faculty and fellow

services, including expert care in medical specialties ranging from ophthalmology to orthopaedics, to help Haiti recover.

Among the highlights: a well-equipped,

>  Miller School of Medicine faculty member

Barth Green, founder and director of Project

Medishare, flew to Haiti the day after the quake and led UM’s medical relief efforts in the months that followed.

weeks. In subsequent months, the facility

treat victims

nearly every U.S. state, and several countries. The Miller School

Katrina. When

of Medicine received a Special Award of Exceptional Service

not delivering

from the Association of American Medical Colleges for its

care farther

extraordinary Haiti relief effort, which “laid the foundation for

afield, the van,

>  Students in the College of Engineering’s Engineers without Borders

what would become one of the most successful post-disaster

emergency medical responses ever mounted by a university.”

chapter journeyed to the small village of Casablanca in the Ica region of Peru, where they used ingenuity to repair town water pipes that had

members from the Rosenstiel School of Marine and Atmospheric

not worked for years.

tion and placed

in service in 2004, brings early

Santiago, Chile, to provide care

derserved areas from the Florida

international perspective on

detection of eye diseases to unKeys through Martin County.

>  Law as a Healing Art The School of Law launches its Therapeutic Jurisprudence Center, an ambitious new center that will play a significant role in identifying practical insights of law and psychology.

Because Haiti remains vulnerable to future temblors, faculty

to area residents—and gain an nursing in the process.

Science and the School of Architecture have been deeply involved in efforts to help the nation rebuild safely. Other activities

include a study of the impact of the quake on Haiti’s educational

University of Miami 2011 President’s Report    21

would be staffed by some 1,500 medical volunteers from UM,

of Hurricane

Leiser Founda-

reached nearly $7 million, UM was

created from the ground up in less than two

years earlier to

the Josephine

conditions.

air-conditioned, 240-bed hospital that was

Louisiana six

com Palmer by

save lives amid unimaginably difficult

able to provide many urgently needed

students at two universities in

donated to Bas-

they could grab—and a determination to

And UM

to the village.

rescue mission, the 40-foot bus

which was

in Port-au-Prince with whatever supplies

Thanks to philanthropic support that

nursing students have worked

had traveled to

that devastated Haiti on January 12, 2010,

provide water

While the Sendai trip marked the van’s first international

>  The Miller school built a 240-bed hospital to save the lives of thousands of seriously

fit. Students in

system, volunteer assistance by School of Communication

faculty for Haitian journalists reporting on the quake, and mental health interventions for people affected by the disaster.

>  Focus on Humanities The College of Arts and Sciences establishes South Florida’s first Center for the Humanities—a resource dedicated to research, teaching, and public programs to enrich Miami’s intellectual culture.

>  Cracking the Top Tier UM is ranked No. 50 in U.S.News & World Report’s 2010 edition of “America’s Best Colleges.”

> Heightening Our Profile Over a remarkably vigorous decade, the University built and upgraded numerous facilities, revamped its brand identity, and hosted a dazzling array of renowned visitors and extraordinary events. Artful Expansions Whether geared toward scientif-

ic study, the arts and humanities, or the goal of a residential cam-

pus, the many improvements to the University’s campuses over the past decade shared one

overarching purpose: to build

an ever-more-vital environment for learning and discovery.

The 2005 opening of the Marta

houses the

musical theater archive. It is

Jewell Glasgow

that include a nationally known adjoined by a music-making

mecca that features five stateof-the-art labs for composing,

recording, and producing music. The generosity of UM trustee

Marta Weeks has also supported scholarships for students in the

Frost School and throughout the University.

and Austin Weeks Music Library

The School of Architecture’s

after longtime major donors

Perez Architecture Center, made

and Technology Center, named to UM, sounded a high note in the history of the Frost School

of Music. The library portion of the 28,000-square-foot facility 22    University of Miami 2011 President’s Report

is home to impressive holdings

Leon Krier-designed Jorge M.

possible by a gift from the South Florida real estate developer

and University of Miami trustee, also opened in 2005. The center

Stanley and

Lecture Hall,

which provides a striking setting for seminars, special

presentations, and public events.

In 2007 the School of

Communication opened its Interna-

tional Build-

>  The Frost School of Music’s Marta and Austin Weeks Music Library and

Technology Center combines an extensive musical library with state-ofthe-art composition and production studios.

ing, reflecting

the school’s commitment to

four galleries showcase a daz-

Shojaee and his wife, Maria

art collection that includes 70

global communication. Masoud Lamas Shojaee, made a naming

gift for the facility’s Shoma Hall, which boasts sophisticated resources including global

sity supporters.

The Lowe Art Museum unveiled

around campus, thanks to the

dramatic growth of the Univerpast several years. Fueled by

the vision of President Shalala,

Contemporary Glass and

Studio Arts opened in 2008.

be seen at many focal points

sity’s sculpture garden over the

Sheldon Palley Pavilion for

>  Helping Haiti The University begins comprehensive relief efforts for the people of Haiti in the aftermath of the devastating January 12 earthquake.

alumni and longtime Univer-

Unique works of art can also

years when the Myrna and

>  The Jorge M. Perez Architecture Center pays distinctive homage to traditional building design

works donated by the Palleys,

teleconferencing equipment.

its first major addition in 12

while hosting seminars, student exhibits, and special events on architecture and urban design.

zling multimillion-dollar glass

The 3,500-square-foot pavilion’s

donor generosity, and the efforts

>  Groundbreaking Summit In a first-of-its-kind meeting organized by the University of Miami’s College of Engineering, members of the National Academy of Engineering and the Institute of Medicine gather at UM to discuss strategies for using technology to improve health care.

of people who visit the Coral Gables campus each year. Making Campus   Life Livelier Home to ’Canes basketball

games and many other events, the 8,000-seat BankUnited

>  Fletcher Benton’s “Donut with Balls

Number 28” is one of the many monumental outdoor sculptures that adorn the University of Miami’s Coral Gables campus. of the Lowe Art Museum and the University community,

this eye-catching assortment

of outdoor sculptures attracts, delights, and engages members of the University community and the thousands

Center opened in 2003. In fall

2004 the facility found a place in national history by hosting

the first presidential debate of

the campaign season between incumbent George W. Bush

and challenger John Kerry.

University’s goal of becoming a more residential campus.

the multipurpose Fieldhouse

wellness center in 2008. The

was awarded a prestigious

Allan Herbert donated addition-

ing space was provided when opened in 2009. The facility

LEED Green Building certifica-

tion for its energy- and waterefficient features.

University Village, which

opened in 2006, provides

appealing apartments for

Building Health  

Nurturing the well-being of

the students, staff, and faculty who help our community stay healthier, the Miller School

campus opened a sleek new

Building has since 2006 accomwide range of disciplines and

programs, including the Michael S. Gordon Center for Research in Medical Education. The nine-

story Biomedical Research Building opened in 2009, housing

several years,

School of Medicine has transformed health care in South Florida with

sophisticated

new facilities to advance

biomedical re-

search, provide better care for patients, and

>  The Patti and Allan Herbert Wellness Center, a popular campus

University of Miami 2011 President’s Report    23

campus life.

>  Stimulating Success Federal stimulus grants are received in support of two major new UM facilities: a Neuroscience and Health Annex on the Coral Gables campus and an integrated seawater laboratory building on the Rosenstiel School campus.

a warm welcome this year.

the Miller

student living options and

Richard Jolley’s “Blue Head with Flowers.”

modated researchers from a

persized facility was unveiled to

a more fully residential cam-

years—dramatically enhanced

for Contemporary Glass and Studio Arts include

that bears their name. The su-

Over the past

new residential project in 35

outstanding clinical care.

The 15-story Clinical Research

Gables campus wellness center

campus. Reflecting the Univer-

pus, the enclave—UM’s first

extend the impact of the school’s

al funds to expand the popular

and Well-Being

sity’s strategic goal to become

Museum’s Myrna and Sheldon Palley Pavilion

following year, alumni Patti and

upperclassmen on the southwest side of the Coral Gables

>  Artworks on display at the Lowe Art

>  The attractive student housing community known as University Village supports the

Additional practice and gather-

destination, received a major expansion that allowed it to better serve the campus community.

>  Environmental Preservation The R.J. Dunlap Marine Conservation Program, an initiative of the Rosenstiel School and the Abess Center for Ecosystem Science and Policy, is created to advance marine conservation through research and education.

>  Alumni Magnet The University dedicates the new Robert and Judi Prokop Newman Alumni Center, a home away from home for loyal ’Canes.

hundreds of scientists who

collaborate with physicians on

disease-based research, as well

as the Hussman Institute for Human Genomics and the Interdisciplinary Stem Cell Institute. In

addition to serving as a locus of

leading-edge science, both buildings are models of sustainable design and construction.

The year 2006 saw the opening

of Bascom Palmer Eye Institute’s $22 million eye care center in

Palm Beach Gardens. The 7.5 acre

>  Overwhelming support from loyal ’Canes was key to the creation of a handsome home away from home for University alumni: the Robert and Judi

Prokop Newman Alumni Center. Sparked by a generous lead naming gift from the Newmans and built entirely with alumni contributions, the center opened in the fall of 2010. Center in 2007. Now known as

and Wexford Miami, LLC, a pri-

the acute-care facility is home

in a new era of progress in South

University of Miami Hospital,

to several high-profile medical and surgical specialties, a busy training and research site, and a global medical destination.

On the Coral Gables campus, the School of Nursing and Health

Studies dramatically expanded its ability to prepare well-

>  The Clinical Research Building is home

24    University of Miami 2011 President’s Report

to collaborative Miller School of Medicine

programs such as the Center for Research in Medical Education, the Perinatal Addiction Research and Education Program, and the Center for Family Studies.

identity, which was adopted in

innovations, advance clinical

rolled out a new identity system

nology and other leading-edge breakthroughs, and bring jobs

and economic development to South Florida.

the early 1980s, the University

in 2009 to reflect its growing renown as one of America’s great research universities.

in 2007. Among the sophisti-

cated resources housed in the

sleek four-story building is the

5,500-square-foot International

and Research, the first facility

access to the latest clinical trials.

The opening this fall of R+D

In a milestone for the Miller

of Miami Life Science & Technol-

>  Achieving Athletic Excellence The University receives a $5 million gift from the Ted and Todd Schwartz Family Foundation to create the Theodore G. Schwartz and Todd G. Schwartz Center for Athletic Excellence.

its previous

is designed to foster biotech-

for Nursing and Health Studies

of its type in the nation.

purchased Cedars Medical

project in UM’s history, the LSTP

M. Christine Schwartz Center

significant expansion of patient

School, the University of Miami

30 years with

when it moved into the

Academy for Clinical Simulation

care, research capabilities, and

After nearly

Florida. The most ambitious

educated health professionals

campus offers the latest oph-

thalmologic technology and a

Unifying the U

vate development firm, ushered

Building One at the University

ogy Park (LSTP) developed by UM

>  The 252,000-square-foot R+D Building One, the first phase of the University of Miami Life

Science & Technology Park, was dedicated this September.

>  Rising to the Challenge The third Clinton Global Initiative University meeting is held on UM’s Coral Gables campus, challenging participating students to help solve pressing global problems.

The heart of the new system,

high-profile events during the

is one of the nation’s most rec-

ple tuned in to a live broadcast of

the University’s split-U logo,

ognizable collegiate marks and may well be the most ubiqui-

tous graphic symbol throughout South Florida. The system also guides the use of other key

graphic elements, including

color, type font, and layout on all marketing materials, including University websites.

past decade. Some 63 million peothe 2004 Bush-Kerry presidential

debate; a few years later, UM and Univision Communications Inc.

presented the first-ever nationally televised presidential debates targeting Spanish speakers.

In 2007 UM received visits from 42nd U.S. President Bill Clinton

and 45th Vice President

Al Gore, who

presented his convictions about the

issue of global warming

during his “An

>  BankUnited Center is the venue of choice for a lively calendar of

activities ranging from student convocations, basketball games, and concerts to historic political events, such as the September 2004 presidential debate between incumbent George W. Bush and challenger John Kerry.

Inconvenient Truth” tour.

Barack Obama

Ring Theatre, such as a 2010 revival of the long-running Broadway hit Rent.

McCain made

the Clinton Global Initiative

urged his youthful audience to

UM students played pivotal roles

more peaceful and compassion-

and John

campaign

The result? From alumni ties

stops at BankUnited Center dur-

shuttle-bus signage to infant

April 2010, Clinton returned to

to magazine ads, Hurry ’Canes

ing the 2008 presidential race. In the Gables campus to lead

consistently seen in a wide

University conference, where

as volunteers and visionaries.

On the arts and entertainment

Zakaria, the latter of whom

2006 as the brand for all cultural

received an honorary doctor-

been glimpsed in some very

ate in humane letters from

unusual settings—such as the

UM in 2007, shared perspec-

military chopper flying along

tives on global affairs in 2008

the Pakistan border that was

and 2010, respectively. And in

adorned with the U by two

October 2010, His Holiness the

enthusiastic ’Canes fans.

14th Dalai Lama, Tenzin Gyatso, addressed thousands of UM

Prominent Pursuits From political debates to spiri-

tual musings, the University of Miami has hosted a variety of

>  His Holiness the 14th Dalai Lama delivered

an inspiring talk to an audience of nearly 8,000

ate world.

Award-winning journalists

Anderson Cooper and Fareed

variety of applications. It’s also

take responsibility for creating a

students at BankUnited Center.

The charismatic spiritual leader, who first visited UM in 2004,

front, UM Presents—launched in arts programming at the U—has

kept galleries, theaters, and other UM venues humming. On tap

each year are high-profile exhibitions at the Lowe Art Museum,

the Frost School’s Festival Miami, the Beaux Arts Festival, Department of Theatre Arts presentations at the Jerry Herman Ring

Theatre, Cosford Cinema screen-

University of Miami 2011 President’s Report    25

wear, the UM logo is now

>  The Department of Theatre Arts presents engaging, high-quality productions of varied favorites at the Jerry Herman

ings, and other top-notch events.

during a 2010 visit to the University.

>  The New Heart of Campus A $20 million gift from the Fairholme Foundation provides leadership support for construction of the University’s new Student Activities Center.

>  Hemispheric Awareness The University joins forces with Florida International University to launch the Miami Consortium to promote understanding of Latin America and the Caribbean.

>  Meteoric Rise Continues UM climbs to No. 38 on U.S.News & World Report’s prestigious list of “America’s Best Colleges,” a dramatic nine-slot rise in one year.

Report on Business and Finance

Strong Revenues as Steady   Recovery Continues

>

Fiscal 2011 was marked by steady operational performance

and strong investment returns. Our largest sources of operat-

ing revenue—tuition and fees, grants and contracts, and clinical care from UM physicians and facilities—each had significant growth over the prior year.

Investment returns for both the Growth Pool, composed of endow-

portfolio provided a strong risk-adjusted return. For the year, the

endowment increased $101.7 million, ending the year with a balance of $719.9 million.

Pension assets, with a slightly more conservative asset allocation,

returned 18 percent. The unfunded balance of the Employees Retire-

ment and a portion of working capital, and the Employees Retire-

ment Plan, a defined-benefit pension plan that has been closed to

there is no time to rest on our laurels. The new fiscal year started

million on a GAAP accounting basis with plan assets of $526 million

ment Plan pension assets approached 20 percent. Unfortunately, off with uncertainty in domestic and international markets and

concerns about a double-dip recession. We continue to believe that

the University’s long-term interests are best served by a diversified

new participants since June 2007, was reduced by $62 million to $246 at year end. The University anticipates continuing to make significant annual contributions to the plan until such time as it is fully funded.

asset allocation coupled with talented investment managers.

T O TA L R E V E N U E S

Overall net assets increased $215.5 million, bringing total net assets

(in millions)

2,465

$2,500

to $1.574 billion. Unrestricted net assets from operating activities

increased $14 million; unrestricted net assets from non-operating activities increased $187.7 million, principally from investment returns. Temporarily and permanently restricted net assets increased by a combined $13.8 million.

Operating results were driven by strong revenue growth throughout

2,291

2,000

1,788

1,822

1,797

2008

2009

1,500

1,000

our operations.

500

Operating revenues grew $133.6 million, or 6 percent; operating expenses grew $132.1 million, also 6 percent.

26    University of Miami 2011 President’s Report

Growth Pool investments returned 19.9 percent as our diversified

0

2007

2010

2011

Tuition revenue increased $17.9 million, or 5 percent. Freshman

applications for fall 2011 reached a record high of nearly 28,000, an increase of 7 percent from the prior year.

O P E R AT I N G R E V E N U E S – $ 2 , 3 4 1 . 0 (in millions)

Grants and contracts revenues increased $45 million, or 9 percent, to $518.8 million.

Clinical revenue, which accounts for half of all operating revenues, increased $73.6 million, or 7 percent. Medical professional practice revenue increased 4 percent. Each of our three hospitals had sub-

Hospitals and Clinics

$751.8 (32.1%) Auxiliary Enterprises, net

$99.2 (4.2%) Gifts and Trusts

Investment Return

$40.3 (1.7%)

$84.5 (3.6%) Other Sources

$26.8 (1.1%)

Tuition and Fees, net

$401.2 (17.2%)

stantial revenue growth, with Sylvester Comprehensive Cancer Center/UMHC up 15 percent, University of Miami Hospital up 8 percent, and Anne Bates Leach Eye Hospital up 10 percent.

Medical Professional Practice

$418.4 (17.9%)

New state legislation extended sovereign immunity protection to private university physicians who treat patients at public

Grants and Contracts

$518.8 (22.2%)

hospitals. This applies to UM physicians who practice at Miami-

Gifts and trusts from operating and non-operating sources totaled

protection to UM physicians as has historically existed for Jackson

per CASE (Council for Advancement and Support of Education) stan-

Dade County’s Jackson Memorial Hospital. It provides the same

physicians, nurses, and staff. Over time this will reduce the University’s costs for medical malpractice from services provided at the county-owned facility. We expect the new legislation to become effective during the first half of fiscal 2012.

$105.2 million, essentially flat with the prior year. Fundraising totals dards reached $172 million, up 8 percent. The University is in the

latter stages of planning its next fundraising campaign, successor to the record-breaking Momentum campaign, which concluded at the

end of 2007 and raised more than $1.4 billion for endowed chairs and

New and returning students to the Coral Gables campus this fall were greeted by a renovated Whitten University Center and a cordoned-off area where a state-of-the-art, 118,000-square-foot Student Activities Center has broken ground. grams, and other initiatives.

An updated five-year financial plan was approved by the University’s Board of Trustees. The plan is ambitious, as befitting a University with great ambitions. It includes continuing to strengthen the

balance sheet via a disciplined, multi-year approach while moving forward with programmatic initiatives and capital projects that enhance teaching, research, and clinical care.

New and returning students at the Coral Gables campus this fall were greeted by a renovated Whitten University Center and a cordoned-

and Health Annex, an addition to the Cox Science Building, will

include wet lab and auditory neuroscience facilities, a vivarium,

faculty offices, and conference facilities. Funding will come primarily from an American Recovery and Reinvestment Act grant from the

National Institutes of Health. And the 32,000-square-foot expansion of the Hecht Athletic Center to house the Theodore G. Schwartz and Todd G. Schwartz Center for Athletic Excellence will include new

locker rooms, a players’ lounge, and a major expansion of academic space for student-athletes, which will benefit all sports. It will be funded by philanthropy, including a generous naming gift from Ted and Todd Schwartz.

off area where a state-of-the-art, 118,000-square-foot Student Activi-

In the planning stages are an 86,000-square-foot Marine Technol-

popular Rathskeller and other ground-floor retail spaces, offices for

School of Marine and Atmospheric Science, along with phase-one

ties Center (SAC) has broken ground. The new SAC will house the student organizations, lounges, and 12,000 square feet of multi-

purpose/meeting rooms. It was made possible by the generosity

of the Fairholme Foundation, along with a dedicated student fee. The new year will see groundbreaking of at least two other exciting projects. The 38,000-square-foot Interdisciplinary Neuroscience

ogy and Life Science Seawater Research Building for the Rosenstiel facility expansions for both the School of Law and Frost School of Music.

Design development is complete for the UHealth Clinic, a 206,000square-foot outpatient facility planned for the University’s

Coral Gables campus. Planning is also well under way for the

University of Miami 2011 President’s Report    27

professorships, scholarships, facilities, academic and medical pro-

T O TA L A S S E T S (in millions) $3,500

3,240 3,000

2,941

3,186 2,912

3,005

2,500

consolidation and expansion of UHealth facilities in west-central

Broward County. The geographic expansion of UHealth facilities will provide improved access to South Florida’s best physicians to resi-

2,000

1,500

dents, visitors, and the University’s own faculty, staff, and students.

All of these major capital projects are managed by Vice President of Real Estate and Facilities Larry Marbert and his talented staff in the real estate and facilities division.

1,000

500

0

2007

2008

2009

2010

2011

R+D Building One of the University of Miami Life Science & Technology Park (LSTP) opened this fall with the expanded UM Tissue Bank as its anchor tenant. The LSTP, a partnership between the University’s real estate subsidiary, Miami Asset Management Company (MAMCO), led by CEO Michael Katz, and developer

Wexford Miami, LLC, is planned for five buildings totaling in excess of 1.5 million square feet. The park will house a diverse group of

companies, including startups that will leverage discoveries made by UM faculty.

E N D OW M E N T F U N D S (in millions) $800

741

736

720

700

618 600

539 500 400

Technology will play a critical role in our future success. Last year saw implementation of the Epic electronic medical record and

billing system throughout most of UHealth’s clinical operations.

The University is about to launch a major project to replace student, human resources/payroll, and financial administrative systems.

Technology throughout the University is already benefiting from

300

200

100

0

2007

2008

2009

2010

2011

14,854

14,991

2010

2011

the leadership of new Vice President and Chief Information Officer Steve Cawley, who moved to the University from a similar position

ENROLLMENT

at the University of Minnesota. Our faculty, students, and staff 28    University of Miami 2011 President’s Report

need cutting-edge tools to do their best work. We are committed

(FTE) 20,000

to providing just that.

The University is committed to upholding the highest standards

15,000

15,011

14,811

14,685

of personal and professional conduct in everything it does. Compliance with standards is tied to a system of internal controls that facilitates timely identification of inappropriate behaviors or

10,000

transactions. Our goal is for internal controls and compliance

efforts to operate at the highest levels. Nothing less is acceptable.

The administration monitors University operations through enter-

5,000

prise risk management; ongoing reviews of policies and training that are provided to new hires and veteran employees; and by

0

ensuring that compliance efforts throughout our operations are proactive and tenacious.

Continuing to climb the ranks of the nation’s best private research

institutions will depend on the University’s talented and dedicated

faculty and staff. We are grateful for all of their contributions in the past year and excited about the year ahead. Our Human Resources

division, led by Vice President Nerissa Morris, will focus particularly on two initiatives this year—encouraging employee engagement

2007

2008

Let me close by thanking our faculty and staff for their extraordi-

nary commitment to the University. Recent faculty and staff surveys

showed that our people are proud to work for the University of Miami; believe strongly in its goals and objectives; and are willing to put in a great deal of extra effort to help the University of Miami succeed. That’s apparent and greatly appreciated, every day, in many ways.

and ensuring that the diversity of our students, faculty, and staff

Joe Natoli

great University.

and Chief Financial Officer

is valued and nurtured in ways that add to the specialness of our

2009

Senior Vice President for Business and Finance

>

The past fiscal year was characterized by major geopolitical

Benchmark Returns May 31, 2011

and macroeconomic events around the world that caused

periods of higher volatility in stocks, bonds, commodities, and cur-

Total Growth Pool Portfolio Returns

S&P 500

Barclay’s CPI Aggregate Increase Bond Index Rate

rencies. The University of Miami’s Growth Pool adhered to its long-

Time Period 10 Year

4.9%

4.4%

2.6%

5.8%

2.6%

risk and, as a result, realized high absolute returns. For the 12 months

5 Year

4.4%

3.6%

3.3%

6.6%

2.4%

term investment policy despite these intermittent periods of higher ended May 31, 2011, the Growth Pool realized a total return of 19.9 percent.

3 Year

1.8%

0.7%

0.9%

6.5%

1.7%

1 Year

19.9%

23.2%

25.9%

5.8%

3.7%

We are gratified by the high level of absolute return, which far

exceeded the University’s long-term goal of 5 percent-plus-inflation,

Growth Pool Strategic Asset Allocation May 2011

but also note that last year’s return fell short of the portfolio bench-

Allocation (%)

mark of 23.2 percent. The value bias of the Growth Pool was the main reason for the relative underperformance as most UM managers

Asset Class

Policy Target

May 2011

17.5

20.2

avoided securities driven by earnings momentum that are typically

U.S. Large/Mid Cap Equity U.S. Small Cap Equity

5.0

5.7

strong markets. The most compelling reason, however, for the

International Equity

20.0

20.0

Emerging Markets Equity

2.5

3.9

fund portfolio.

Global Fixed Income

5.0

5.1

U.S. TIPS

7.0

In direct contrast to the previous fiscal year, when the Growth Pool’s

Hedge Funds

30.0

Private Equity

5.0

6.1

overall performance, this year saw the opposite result: Hedge funds,

Real Assets

8.0

7.2

overvalued. It is typically this type of security that dominates during relative underperformance to the policy benchmark was the hedge

hedge funds represented the largest single positive contribution to

5.1

Report on the Endowment

High Level of Absolute Returns Achieved Amid Year of Investment Volatility

26.0

on a weighted basis, detracted 212 basis points from overall relative

performance. One can more easily accept the near-term shortfall by

examining the longer-term record of these investments: For the three,

Endowment Growth at Market (in millions)

five, seven, and ten years ending May 31, hedge funds outperformed this benchmark by a range of 340 to 520 basis points per year.

concerns about a Greek sovereign default and its impact on both

the weak and strong members of the European Union. At home, the U.S. economy has slowed and the Federal Reserve’s second round

of $600 billion in bond purchases has been completed. The end of

Quantitative Easing-Part Two coincides with a great deal of political

wrangling about whether the U.S. debt ceiling should be raised again without a specific plan to reduce the structural (long-term) deficit.

 Return, including    unrealized appreciation

Five Years

Ten Years

Fifteen Years

$618.2

$620.4

$457.8

$310.5

126.3

254.7

457.8

 Distributions to operations, etc.* (31.1)

(158.6)

(269.6)

(357.0)

Net increase (decrease)

588.1

  Gifts and other net additions Ending Balance

116.7

703.8 16.1 $719.9

442.9

411.3

131.8

277.0

308.6

$719.9

$719.9

$719.9

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

Although both sides of the debate can agree that the U.S. will need

The Investments Committee also reviews the pool’s performance

specifics of how and when to do so. Fortunately for the U.S., global

manager performance is reviewed on a regular basis, and all manag-

to face its structural deficit, they are far from agreement on the

bond investors have few options other than U.S. Treasury bonds and rates remain quite low.

The Board of Trustees’ Investments Committee and administration

spent a significant amount of time during the year discussing chal-

lenges of investing under the existing circumstances and reviewing asset allocation. Minor changes will be made to the policy target in

against the custom benchmark and peer institutions. Individual ers are subject to the University’s rigid due diligence process.

While the last decade was disappointing for most equity invest-

ments, the next ten years may prove more rewarding for stocks and

other riskier assets. We imagine, however, a challenging environment replete with shorter and more volatile business cycles and continued fiscal pressures as the U.S. government finds ways to reduce the defi-

the coming year to increase emerging markets equities to 7.5 percent

cit. The Growth Pool is designed with all of these issues in mind.

to developed market equities and U.S. TIPS. The chart on this page

John R. Shipley

and to increase hard assets to 10 percent. Reductions will be made depicts the Growth Pool’s asset allocation through May 31, 2011.

Vice President of Finance and Treasurer

University of Miami 2011 President’s Report    29

As the new fiscal year begins, we are faced with another round of

Beginning Balance

One Year

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, 2011 and 2010, 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 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 evaluating the overall financial statement 30    University of Miami 2011 President’s Report

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, 2011 and 2010, 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 26, 2011

Stat e m e n t s o f F i n a n c i a l P o s i t i o n As of May 31, 2011 and 2010 (in millions)

May 2011

May 2010

Assets Cash and cash equivalents $ 162.3 $ 119.0 Accounts and loans receivable 359.3 381.9 Contributions receivable 96.4 99.0 Other assets 103.3 52.1 Investments 869.2 766.3 Property and equipment 1,442.9 1,434.4 Trusts held by others 52.0 52.0 Intangible assets 100.3 100.3 Total Assets

$ 3,185.7

Liabilities Accounts payable and accrued expenses $ Deferred revenues and other deposits Accrued pension and postretirement benefit costs Other liabilities Actuarial liability of annuities payable Reserves for medical self-insurance Government advances for student loans Bonds and notes payable

$ 3,005.0

175.0 $ 160.7 72.4 70.5 247.9 310.9 133.8 125.3 8.5 8.5 106.5 103.7 22.7 23.0 845.3 844.3

Total Liabilities 1,612.1 1,646.9 Net Assets Unrestricted 1,031.7 Temporarily restricted 156.5 Permanently restricted 385.4

830.0 154.4 373.7

Total Net Assets 1,573.6 1,358.1 Total Liabilities and Net Assets

$ 3,185.7

$ 3,005.0

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

University of Miami 2011 President’s Report    31

Stat e m e n t s o f Ac t i v i t i e s For the years ended May 31, 2011 and 2010 (in millions)

May 2011

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

May 2010

401.2 $ 518.8 418.4 751.8 52.6 31.9 31.1 9.2 99.2 26.8

383.3 473.8 403.6 693.0 58.5 33.0 32.7 6.1 96.8 26.6

Total operating revenues 2,341.0 2,207.4 Operating expenses Instruction 461.8 Research 229.6 Public service 157.5 Patient care 1,040.1 Auxiliary enterprises 145.3 Academic support 147.5 Student services 45.2 Institutional support 100.0

437.0 208.8 167.8 965.0 138.4 132.9 43.8 101.2

32    University of Miami 2011 President’s Report

Total operating expenses 2,327.0 2,194.9 Change in unrestricted net assets from operating activities

14.0

12.5

Non-Operating activities Endowment, annuity and other investment return Gifts and trusts Net loss on sale, disposal, and exchange of property and equipment Net assets released from restrictions Transfer to permanently restricted net assets

101.3 3.5 (1.6) 6.7 (.2)

66.8 8.3 (1.7) 9.2 (.4)

Change in unrestricted net assets from non-operating activities

109.7

82.2

Postretirement benefits related changes other than net periodic benefit cost

78.0

(53.3)

Increase in unrestricted net assets

201.7

41.4

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

1.8 37.7 1.2 (38.6) -

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

Increase (decrease) in temporarily restricted net assets

2.1

(15.9)

Changes in permanently restricted net assets Endowment, annuity and other investment return Gifts and trusts Transfer from unrestricted and temporarily restricted net assets

.1 11.4 .2

4.4 12.1 1.1

Increase in permanently restricted net assets

11.7

Increase in total net assets 215.5 Net Assets Beginning of year 1,358.1 End of year

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

$ 1,573.6

17.6 43.1 1,315.0

$ 1,358.1

Stat e m e n t s o f Ca s h F l ow s For the years ended May 31, 2011 and 2010 (in millions)

May 2011

Cash flows from operating activities Increase in total net assets $ Adjustments to reconcile increase in total net assets to net cash provided by operating activities Net realized and unrealized gains 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 Decrease (increase) in Accounts and loans receivable Contributions receivable, net Goodwill Other assets Increase (decrease) in Accounts payable and accrued expenses Deferred revenues, annuities payable and other liabilities Accrued pension and postretirement benefit costs Reserves for medical self-insurance Government advances for student loans Net cash provided by operating activities

215.5

May 2010 $

43.1

(125.2) (43.9) 125.6 97.7 1.6 (1.2) (1.8)

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

(145.4) 25.5 - 17.3

(87.3) 25.5 (1.7) (.5)

14.3 10.0 (63.0) 2.8 (.3)

13.5 (3.3) 55.5 (7.5) .3 107.4

(149.5) 181.7 (123.1)

(195.1) 253.3 (119.5)

(5.1) 5.5

(13.3) 4.8

Net cash used in investing activities

(90.5)

(69.8)

Cash flows from financing activities Gifts for plant expansion and endowment Proceeds from the issuance of debt Payments to retire bonds and notes payable

14.4 15.9 (26.0)

8.6 45.4 (99.3)

Net cash provided by (used in) financing activities

4.3

(45.3)

Cash and cash equivalents Net increase (decrease) Beginning of year

43.3 119.0

(7.7) 126.7

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

End of year

$ 162.3

$

119.0

Supplemental data for noncash investing and financing activities: Conversion of accounts receivable to other assets

$

73.9

$

-

Conveyance of property in exchange for debt

$

12.9

$

-

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

University of Miami 2011 President’s Report    33

129.5

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

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.

34    University of Miami 2011 President’s Report

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 donor-imposed 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 donor-imposed 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. At May 31, 2011, there were no uncertain tax positions. Cash Equivalents All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents.

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): 2011 2010 Scholarships and fellowships: Institutionally funded $ 154.2 $ Externally funded - gifts and grants 11.9

141.7 10.5

Total amount netted against tuition and fees revenue

$ 166.1

$ 152.2

Amount netted against auxiliary enterprises revenue

$

$

11.2

10.3

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 based upon established billing rates less allowances for contractual adjustments. Revenues are recorded in the period the services are provided based upon the estimated amounts due from the patients and third-party payors, including federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies and employers. Estimates of contractual allowances represent the difference between established rates for services and amounts reimbursed by third-party payors based upon the payment terms specified in the related contractual agreements. Third party payors’ contractual payment terms are generally based upon predetermined rates per diagnosis, per diem rates or discounted fee-for-service rates. Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount. The estimated reimbursement amounts are adjusted in subsequent periods as cost reports are prepared and filed and as final settlements are determined. In the opinion of management, adequate provisions for adjustments that may result from such reviews and audits have been made through May 31, 2011, in the accompanying financial statements. 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

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

2. Summary of Significant Accounting Policies and Reporting Practices (continued) Annuities Payable and Trusts Held by Others (continued) annuities which are included in investments. Gift annuities included in investments totaled $19.2 and $17.3 million at May 31, 2011 and 2010, 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.

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 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, 2011 and 2010. 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. Intangible Assets The University records as goodwill the excess of purchase price over the fair value of the identifiable net assets acquired. Until May 31, 2010, goodwill was amortized over an estimated useful life of 40 years. Effective June 1, 2010, the University adopted Accounting Standards Codification (ASC) 958-805, and as a result goodwill is no longer amortized. The University is now required to assess goodwill for impairment annually at March 31, or more frequently if circum-

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 $72.5 and $65.7 million during the years ended May 31, 2011 and 2010, 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): 2011 2010 Depreciation and amortization $ 125.6 $ 124.5 Interest 39.1 38.3 Operations and maintenance 120.2 110.8 Total

$ 284.9

$ 273.6

Accounting Change due to New Pronouncements In August 2009, the Financial Accounting Standards Board (FASB) issued Update No. 2009-05 to ASC 820, Fair Value Measurements and Disclosures for the fair value measurement of liabilities. This amendment provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more prescribed techniques. The amendment also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendment further clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required, are Level 1 fair value measurements under the fair value hierarchy. The University adopted this amendment for the fiscal year ended May 31, 2011. In January 2010, the FASB issued Update No. 2010-06 to ASC 820, Fair Value Measurements and Disclosures-Improving Disclosures About Fair Value Measurements, which requires new disclosures and reasons for transfers between Level 1 and Level 2 measurements under the fair value hierarchy. This amendment also clarifies that disclosures about inputs and valuation techniques are required for both Level 2 and Level 3 measurements. With the exception of the following sentences, the amendment is effective for years beginning on or after December 15, 2009. The University adopted this portion of the amendment for the fiscal year ended May 31, 2011. The amendment further clarifies that the reconciliation of Level 3 measurements should separately present purchases, sales, issuances and settlements instead of netting these changes. This portion of the amendment is effective for years beginning on or after December 15, 2010 and has not yet been adopted. In January 2010, the FASB issued Update No. 2010-07 to ASC 958805 (formerly Statement of Financial Accounting Standard (SFAS) No. 164, Not-for-Profit Entities: Mergers and Acquisitions). This amendment provides guidance for determining whether a combination of not-for-profit entities is a merger or an acquisition. The standard requires the application of the carryover method in accounting for a merger and the acquisition method in accounting for an acquisition, and provides guidance on determining which of the combining entities is the acquirer. It requires disclosure of information to enable users of financial statements to evaluate the nature and financial effects of

University of Miami 2011 President’s Report    35

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.

stances indicate impairment may have occurred. The University assesses goodwill for such impairment by comparing the carrying value of the hospital to its estimated fair value. The fair value of the hospital is determined utilizing discounted cash flows, comparative market multiples and other factors. In its determination of fair value, the University incorporates assumptions that it believes marketplace participants would utilize (note 9).

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

2. Summary of Significant Accounting Policies and Reporting Practices (continued) Accounting Change due to New Pronouncements (continued) a merger or an acquisition. This amendment also amends ASC 350 (formerly SFAS No. 142, Goodwill and Other Intangible Assets), to make it fully applicable to not-for-profit entities. This amendment was adopted by the University for the fiscal year beginning June 1, 2010. As a result of adopting ASC 958-805, goodwill is no longer amortized and its carrying value is reviewed for impairment annually (note 9). In July 2010, the FASB issued Update No. 2010-20 - ASC 310, Receivables: Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. This amendment requires enhanced disclosures that facilitate financial statement users’ evaluation of the following: the nature of credit risk inherent in the entity’s portfolio of financing receivables; how that risk is analyzed and assessed in arriving at the allowance for credit losses; and the changes and reasons for those changes in the allowance for credit losses. The University adopted this standard for the fiscal year ended May 31, 2011. 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 2011 or 2010. Subsequent events The University evaluated events and transactions occurring subsequent to May 31, 2011, through August 26, 2011, the date of issuance of the financial statements. During this period, there were no subsequent events requiring recognition in the financial statements. Reclassifications Certain amounts in the prior year’s financial statements have been reclassified to conform to the current years’ presentation.

36    University of Miami 2011 President’s Report

3. Accounts and Loans Receivable At May 31, accounts and loans receivable consist of the following (in millions): 2011 2010 Accounts and loans receivable, net: Patient care $ 210.4 $ 192.6 Grants, contracts and other 64.6 103.7 Shared appreciation mortgages 49.6 50.6 Student 5.1 5.6 Student loans, net 29.6 29.4 Total

$ 359.3

$ 381.9

Accounts and loans receivable, and student loans receivable are net of allowances for doubtful accounts of $123.9 and $1.0 million, respectively, for 2011 and $113.7 and $1.1 million, respectively, for 2010. 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 $52.1 and $53.1 million (net of $2.5 million allowance for doubtful accounts) at May 31, 2011 and 2010, 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): 2011 2010 In one year or less $ Between one year and five years More than five years

29.0 $ 53.5 41.0

28.5 58.5 41.1

Discount of $17.5 and allowance of $9.6 for 2011 and $18.6 and $10.5 for 2010, respectively

123.5

128.1

(27.1)

(29.1)

Total

96.4

$

$

99.0

5. Fair Value of Financial Instruments The valuation methodologies used for other investment instruments measured at fair value consisted of: Variable Rate Swap Agreement The University entered into an interest rate swap agreement in fiscal 2005 to manage the market risk associated with outstanding variablerate 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 $3.7 and $2.8 million for the years ended May 31, 2011 and 2010, respectively and is included in other investments in the tables that follow. Changes in the fair value, which for fiscal 2011 and 2010 amounted to an unrealized loss of $.9 million, are recorded as non-operating activities in the statements of activities. The notional amount was $19.5 and $20.0 million for fiscal 2011 and 2010, respectively. Fair Value Measurements Investments The fair market value of investments at May 31, 2011 and 2010 amounted to $869.2 and $766.3 million, with a cost basis of $742.9 and $739.0 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, 2011 and 2010, the fair value of the University’s primary investment pool (the Growth Pool) amounted to $816.3 and $695.2 million, with a cost basis of $695.1 and $668.5 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 on investments for the year ended May 31, 2011 and 2010 was $97.8 and $65.3 million, respectively. 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

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

5. Fair Value of Financial Instruments (continued)

Fair Value Measurements (continued)

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 are 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 level in the fair value hierarchy within which a fair value measurement in its entirety falls 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, 2011. The following tables set forth by level, within the fair value hierarchy, the University’s assets at fair value (in millions):

At May 31, 2011

Total

Level 2

Level 3

- $ 16.4 $ - .8

-

5.4

5.4

-

-

87.7 24.1

87.7 24.1

- -

-

8.1 3.9 11.2 24.0 50.4 8.9

- - - - - -

8.1 3.9 11.2 24.0 50.4 .6

8.3

- 23.6 - 163.0 - 73.7 - 41.2 - -

42.1 50.0

72.7 97.4

- -

- 74.0

72.7 23.4

34.9 23.8 5.9

- - 7.7

33.3 - (1.8)

1.6 23.8 -

Total investments 869.2 124.9 522.4 Trusts held by others 52.0 - -

221.9 52.0

Total assets

16.4 $ .8

23.6 163.0 73.7 83.3 50.0

$ 921.2

$ 124.9

$ 522.4

$ 273.9

At May 31, 2010

Total

Assets: Short term investments $ Debt securities: US Treasury & other government agencies US 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

18.7

Level 1 $

Level 2 $ 18.7

Level 3 $

-

5.0

5.0

-

-

5.1

-

5.1

-

50.0 19.3

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

66.3 81.6

- -

- 48.1

66.3 33.5

26.8 16.9 13.8

- - 13.5

25.1 - .3

1.7 16.9 -

87.8 457.5 - -

221.0 52.0

Total investments 766.3 Trusts held by others 52.0 Total assets

-

$ 818.3

$ 87.8

$ 457.5

$ 273.0

University of Miami 2011 President’s Report    37

Assets: Short term investments $ Corporate bonds Debt securities: US Treasury & other government agencies 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

Level 1

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

5. Fair Value of Financial Instruments (continued) Fair Value Measurements (continued) The following tables set forth a summary of changes in the fair value of the University’s level 3 assets: For the year ended May 31, 2011 (in millions): Total net gains (losses) included Purchases, sales, in changes in net assets issuances, Net Income May 31, 2010 settlements, net Reinvested Realized Unrealized 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 Investments Trusts held by others Total assets

7.4

$

(.4)

$

.4

$

-

$

.9

Transfers in and/or out of level 3 $

-

May 31, 2011 $

8.3

49.6 45.6

(12.0) (4.2)

1.7 1.1

(1.0) 3.6

3.8 3.9

- -

42.1 50.0

66.3 33.5 1.7 16.9

- (13.3) (.1) 3.5

4.6 (.7) - (.1)

(4.4) 1.9 - .4

6.2 2.0 - 3.1

- - - -

72.7 23.4 1.6 23.8

221.0 52.0

(26.5) (1.1)

7.0 -

.5 -

19.9 1.1

- -

221.9 52.0

(27.6)

7.0

21.0

-

$ 273.0

$

$

$

.5

$

$

$ 273.9

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

38    University of Miami 2011 President’s Report

May 31, 2009

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 investments Trusts held by others Total assets

6.4

Purchases, sales, issuances, settlements, net $

(.1)

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

Net Income Reinvested $

.3

$

-

$

.8

Transfers in and/or out of level 3

May 31, 2010

$

$

-

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

- (12.2) (.5) 2.0

.3 (.5) - .4

1.4 4.0 (.3) .2

12.1 .1 .1 (2.4)

- .4 - -

66.3 33.5 1.7 16.9

198.8 48.6

(8.9) (.7)

2.6 -

8.1 -

20.0 4.1

.4 -

221.0 52.0

(9.6)

2.6

8.1

24.1

$ 247.4

$

$

The total level 3 change in net unrealized gains for the years relating to those investments still held at May 31, 2011 and 2010 total $19.9 and $20.0 million, respectively, and are reflected as part of investment return in the statement of activities. The total level 3 change in

$

$

$

.4

$ 273.0

value related to trusts held by others at May 31, 2011 and 2010 total $1.1 and $4.1 million, respectively, and are reflected as part of investment return and changes in value of annuities payable and trusts held by others in the statement of activities.

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

5. Fair Value of Financial Instruments (continued) Fair Value Measurements (continued) The following tables summarize the University’s assets whose fair value is estimated using net asset value per share (in millions):

Fair Value

Assets: 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 investments Trusts held by others Total assets

30 days 5-15 days 60 days 10-90 days N/A

72.7 97.4 34.9 23.8 5.9

- (Q) - (Q), (A) - (M), (S) 11.4 * - N/A

65-90 days 45 days 10 days, 6 months N/A N/A

$

34.1 -

N/A

N/A

Redemption Frequency

Days Notice

34.1

Fair Value

At May 31, 2010 Future Commitments

- (M) - (M) - (Q) - (M), (A) 30.6 *

30 days 5-15 days 60 days 10-90 days N/A

66.3 81.6 26.8 16.9 13.8

- (Q) - (Q), (A) - (M), (S) 19.9 * - N/A

65-90 days 45 days 10 days, 6 months N/A N/A

561.0 52.0

50.5 -

Total assets

613.0

50.5

$

N/A

N/A

Redemption Frequency: (A) Annually, (S) Semi-annually, (Q) Quarterly, (M) Monthly (*) The expected liquidation date for these assets range from 2013 to 2023 and are based on a combination of the inception date of the fund and the expected life of the fund as outlined in the partnership agreement inclusive of the manager’s ability to extend the fund’s life. The University’s investment policy and strategy for its investments, as established by the Investment Committee of the Board (the Committee) and ratified by the Executive Committee of the Board, 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 University assets is 45% equity securities, 10% fixed income, and 45% other investments. The Committee reallocates its investments periodically to meet established target allocations. In addition, the Committee reviews its investment policy and target allocations periodically and affects changes when required, in ensuring that strategic objectives are achieved. 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, mortgage-backed securities, and U.S. Treasuries. Other investments include investments in hedge funds, private equity funds, and real estate funds. These investments are made with the intention of raising portfolio return and lowering total volatility which as of May 31, 2011 consists of investments similar to those of the HRFI Fund of Funds, S&P 500, Dow Jones, AIG Commodity, NCREIF Property and MSCI Indexes.

University of Miami 2011 President’s Report    39

18.1 $ 128.8 76.5 86.6 45.6

Total investments Trusts held by others $

Days Notice

- (M) - (M), (Q) - (M), (Q) - (M), (A) 22.7 *

Assets: 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

Redemption Frequency

23.6 $ 163.0 73.7 83.3 50.0

628.3 52.0

At May 31, 2011 Future Commitments

$ 680.3

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

5. Fair Value of Financial Instruments (continued)

8. Property and Equipment

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): 2011 2010 Operating: Endowment spending distribution $ Investment return Total operating investment return

31.1 $ 9.2 40.3

32.7 6.1 38.8

Non-Operating: Unrestricted Endowment interest and dividend income, realized and unrealized gains, net of endowment spending distribution Other net realized and unrealized gains

85.7 15.6

54.4 12.4

Total unrestricted non-operating investment return Temporarily restricted investment return Permanently restricted investment return

101.3 1.8 .1

66.8 1.5 4.4

Total non-operating investment return

103.2

72.7

Total investment return

Land Land improvements Buildings and building improvements Leasehold improvements Construction in progress Moveable equipment Library materials Art objects

- $ 20 years

$ 143.5

$

111.5

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, 2011 and 2010 approximated $756.8 and $795.1 million, respectively. The carrying amounts of these bonds payable at May 31, 2011 and 2010 approximated $781.3 and $799.7 million, respectively.

7. Other Assets Other assets primarily represent prepaid expenses and inventories. During September 2010, the University entered into a tri-party agreement with the Public Health Trust (PHT) and Miami-Dade County wherein the receivable associated with the annual operating agreement was converted to a prepaid asset. The value of the receivable at September 30, 2010 was $73.9 million, and included a long-term land lease with a discounted value of $14.1 million. The University will receive goods, rentals, and services in the normal course of business with the PHT until the prepaid asset is exhausted. At May 31, 2011, the remaining prepaid asset under this agreement, after application of purchased services for the months of October 2010 through May 2011, was $60.5 million. Based on the repayment terms of the agreement, the balance of the prepaid should be exhausted by March 1, 2014, with the exception of the long-term land lease which extends through 2080.

94.9 $ 87.6

91.0 77.3

8 to 50 years 1,506.2 1,477.0 1 to 50 years 32.5 32.6 - 47.7 27.5 3 to 20 years 528.9 498.3 12 years 110.8 108.6 - 51.8 49.7

2,460.4 2,362.0 Accumulated depreciation and amortization (1,017.5) (927.6) Total

6. Fair Value of Other Financial Instruments

40    University of Miami 2011 President’s Report

Property and equipment and related accumulated depreciation and amortization at May 31 consist of the following (in millions): Useful Lives 2011 2010

$ 1,442.9

$ 1,434.4

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 $.2 and $1.7 million was capitalized for the years ended May 31, 2011 and 2010, respectively.

9. 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. In accordance with ASC 350 (formerly SFAS No. 142, Intangibles – Goodwill and Other), amortization of intangible assets ceased at May 31, 2010. Intangible assets recorded are as follows (in millions): 2011 2010 Amortized intangible assets Goodwill at gross carrying value $ 105.8 $ 105.8 Accumulated amortization through May 31, 2010 (6.6) (6.6) Indefinite lived intangible assets 1.1 1.1 Total

$ 100.3

$ 100.3

10. Endowment 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). 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. On June 17, 2011, the State of Florida enacted a version of UPMIFA which becomes effective July 1, 2012. Generally, the law governs conduct in the management and investment of institutional funds, the expenditure or accumulation of endowment funds, and the release or modification of restrictions on the management or investment of institutional funds. The Board of Trustees of the University (the Board) will need to interpret the new law and adopt any necessary changes prior to the law’s effective date.

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

10. Endowment (continued) Interpretation of Relevant Law As discussed above, the State of Florida has now enacted UPMIFA which is effective July 1, 2012. 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.

Unrestricted

Temporarily Restricted

Permanently Restricted

Total

As of May 31, 2010: Donor restricted endowment funds $ 128.6 $ 29.3 $ 312.7 $ 470.6 Quasi endowment funds 147.6 - - 147.6 Total

$ 276.2

$ 29.3

$ 312.7

$ 618.2

As of May 31, 2011: Donor restricted endowment funds $ 196.4 $ 29.4 $ 326.5 $ 552.3 Quasi endowment funds 167.6 - - 167.6 Total

$ 364.0

$ 29.4

$ 326.5

$ 719.9

Unrestricted

Temporarily Restricted

Permanently Restricted

Total

Balance, May 31, 2009

$ 208.3

$ 29.1

$ 301.2

$ 538.6

Investment return Investment income Net appreciation (realized and unrealized)

5.5

-

(.3)

5.2

81.5

-

-

81.5

Total investment return 87.0 Gifts and trusts - Endowment spending distribution for programs (32.7) Net transfers to quasi endowment funds 9.4 Other 4.2

- .1

(.3) 10.7

86.7 10.8

Balance, May 31, 2010 276.2

29.3

Investment return Investment income 11.3 Net appreciation (realized and unrealized) 105.5 Total investment return 116.8 Gifts and Trusts 1.4 Endowment spending distribution for programs (31.1) Net transfers from quasi endowment funds (2.0) Other 2.7 Balance, May 31, 2011

$ 364.0

-

- (32.7)

- .1

- 1.1

9.4 5.4

312.7 618.2

-

(.1)

11.2

-

- 105.5

- .3

(.1) 13.7

116.7 15.4

-

-

(31.1)

- (.2)

- .2

$ 29.4

$ 326.5

(2.0) 2.7

$ 719.9

11. 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 were closed to employees hired after May 31, 2007. Effective 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.

University of Miami 2011 President’s Report    41

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. The intent of the University’s policy for its primary investment pool (the Growth Pool), as approved by the Board, 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 long-term rate-ofreturn 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):

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, 2011 and 2010, this deficiency amounted to $2.9 and $14.1 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, 2011 and 2010 consist of (in millions):

N ot e s to F i n a n c i a l Stat e m e n t s

42    University of Miami 2011 President’s Report

May 31, 2011 and 2010

11. Pension and Other Postretirement Benefit Plans (continued)

The following benefit payments, which reflect expected future service, are expected to be paid, for the fiscal years ending May 31 (in millions):

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 once the employee meets certain eligibility requirements. Eligible employees can begin making voluntary contributions to the Savings Plan at any time. 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 2011 and 2010 were $29.0 and $27.7 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. Eligible employees can begin making voluntary contributions to the Savings Plan II at any time. Core and matching contributions to the Savings Plan II were approximately $4.9 and $3.9 million for the years ended May 31, 2011 and 2010, 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 Retirement 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 $24.1 and $25.5 million for the years ended May 31, 2011 and 2010, 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 benefit is based on the higher of two formulas: a formula based on years of service and the employee’s compensation for the consecutive five year period of employment that produces the highest average; and 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 (combination of age and service). The measurement date for the Employee Plan and postretirement health benefit plan is May 31 for fiscal years 2011 and 2010.

Pension Benefits

Postretirement Benefits

2012 $ 34.1 $ 2013 36.3 2014 36.5 2015 38.7 2016 42.2 2017-2021 229.6

.1 .1 .1 .1 .1 .7

The University expects to contribute $48.4 million to the Employee Plan and $.1 million to its postretirement health plan during the fiscal year ending May 31, 2012. 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 Benefits

2011

2010

Postretirement Benefits

2011

Change in Benefit Obligation Benefit obligation at beginning of year $ 755.9 $ 627.9 $ Service cost – benefits attributed to employee service during period and administrative expenses 20.6 17.3 Interest costs accrued to measure benefit obligation at present value 42.0 41.5 Plan participant contributions - - Actuarial (gain) loss (13.9) 112.2 Benefits paid and administrative expenses (32.3) (34.9) Change in plan provisions - (8.1) Benefit obligation at end of year 772.3 755.9 Change in Plan Assets Employee Plan assets at fair value at beginning of year 448.4 375.5 Investment return on Employee Plan assets 79.4 66.1 Benefits paid and Employee Plan expenses (32.3) (34.9) Employer contributions 30.9 41.7 Plan participant contributions - - Employee Plan assets at fair value at end of year 526.4 448.4 Funded status Accrued pension and postretirement benefit costs recognized on the statement of financial position

3.4

2010

$

3.0

.2

.2

.1

.2

.7 (1.4)

.6 .2

(1.0) -

(.8) -

2.0

3.4

-

-

-

-

(1.0) .3

(.8) .2

.7 -

.6 -

$ (245.9) $ (307.5) $ (2.0) $ (3.4)

Amounts recognized in unrestricted net assets consist of: Net actuarial loss (gain) $ 215.9 $ 293.3 $ (2.2) $ Prior service credit (5.1) (5.7) (.8) Transition obligation - - .2

(1.0) (.9) .3

(1.6)

$ 210.8

$ 287.6

$ (2.8) $

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

11. Pension and Other Postretirement Benefit Plans (continued) At May 31, 2011 and 2010, the accumulated benefit obligation of the Employee Plan was $731.9 and $703.4 million, respectively, $205.5 and $255.0 million, respectively, in excess of Employee Plan assets. The following table provides the components of net periodic pension cost for the plans (in millions):

Pension Benefits

2011

Service cost: Benefits attributed to employee service during periods and administrative expenses $ 20.6

2010

$

Total 20.6 Interest costs accrued to measure benefit obligation at present value 42.0 Expected return on Employee Plan assets (36.4) 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 (gain) loss 20.3 Net periodic benefit cost $ 45.9

Postretirement Benefits

17.3

2011

$

.2

2010

$

.2

17.3

.2

.2

41.5

.1

.2

(31.2)

-

-

(.6)

(.1)

(.1)

-

.1

.1

16.8

(.1)

$ 43.8

$

.2

-

$

.4

A 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2012. The rate is assumed to decrease 1% per year until reaching the ultimate 5.5% in 2018. 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

$

.1

Effect on the health care component of the accumulated postretirement benefit obligation

$

.3

(.1)

(.2)

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

Pension Benefits

2011

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

2010

Postretirement Benefits

2011

2010

5.55% 5.65% 5.55% 5.65% 5.65% 6.65% 5.65% 6.65% 8.25% 8.25%

N/A

N/A

4.20% 4.20%

N/A

N/A

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.

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

Net actuarial loss (gain) $ Prior service credit Transition obligation

Postretirement Benefits

14.2 $ (.6) -

(.1) (.1) .1

University of Miami 2011 President’s Report    43

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

11. Pension and Other Postretirement Benefit Plans (continued)

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. These investments are made with the intention of raising portfolio return and lowering total volatility which at May 31, 2011 consists of investments similar to those of the HFRI Fund of Funds, S&P 500, Dow Jones, AIC Commodity, MCSI and NCREIF Property Indexes. See note 5 for fair value measurement narrative disclosures. The Employee Plan’s investments, by level, within the fair value hierarchy are as follows (in millions):

44    University of Miami 2011 President’s Report

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

At May 31, 2011

Total

Level 1

Level 2

36.8 $ 36.8 $ 19.4 19.4

4.1 71.9

- -

Level 3

- $ -

4.1 71.9

-

-

11.8 9.5 47.3 20.4

- - - -

11.8 9.5 47.3 -

20.4

31.1 23.1 14.3 6.0

- - - 6.0

- 12.2 - -

31.1 10.9 14.3 -

12.5

-

12.5

-

27.6

-

27.6

-

50.5 19.3 91.0

- - -

50.5 19.3 80.5

10.5

18.0 .1 10.5

- - -

13.7 - -

4.3 .1 10.5

1.0

-

-

1.0

$ 62.2

$ 360.9

$ 103.1

At May 31, 2010

Total

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

$ 526.2

Level 1

Level 2

21.3 $ 21.3 $ 15.8 15.8

Level 3

- $ -

-

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

-

9.9

-

12.7

-

12.7

-

38.6 14.9 81.7

- - -

38.6 14.9 72.6

9.1

3.8 22.8 9.9

- - -

- 13.4 -

3.8 9.4 9.9

1.1

-

-

1.1

$ 445.8

$ 37.8

$ 308.7

$ 99.3

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

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

11. Pension and Other Postretirement Benefit Plans (continued) Employee Plan Assets (continued)

For the year ended May 31, 2011 (in millions) May 31, 2010

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

$

18.1

$

(1.0)

1.5

$

1.8

$

-

May 31, 2011

$

20.4

1.0 (.4) 1.7

(.3) .9 .1

2.1 1.1 2.2

- - -

31.1 10.9 14.3

9.1

.9

-

.5

-

10.5

3.8 9.4 9.9 1.1

.1 (9.1) - (.1)

- (.2) - -

.4 - .6 -

- - - -

4.3 .1 10.5 1.0

(6.9)

2.0

8.7

-

99.3

$

$

$

$

$

103.1

For the year ended May 31, 2010 (in millions) May 31, 2009

$

13.8

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

Purchases, sales, issuances, and settlements, net

$

2.2

$

1.0

$

1.1

Transfers in and/or out of level 3

May 31, 2010

$

$

-

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

.6

-

1.1

-

9.1

3.1 11.7 8.6 1.6

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

- .8 - (.5)

1.0 (.2) 1.3 .3

- .1 - -

3.8 9.4 9.9 1.1

(1.4)

4.4

6.3

89.9

$

$

$

$

.1

$

99.3

The total level 3 change in net unrealized gains for the years relating to those investments still held at May 31, 2011 and 2010 total $8.7 and $6.3 million, respectively, and are included in net appreciation in fair value of investments in the Employee Plan’s statement of changes in net assets available for benefits.

12. Bonds and Notes Payable Bonds and notes payable at May 31 consist of the following (in millions): Series

Final Maturity

Miami-Dade County, Florida Educational Facilities Authority 2007A to 2008B Notes payable to banks and others - Notes payable to banks and others

2015 to 2038 2013 to 2030 2013 to 2035

2011 Interest Rate

2011

4.0% to 6.1% $ 3.3% to 6.5% Variable

Par amount of bonds and notes payable Net unamortized premium Total

2010

751.8 $ 767.8 37.0 24.2 35.5 20.4 824.3 21.0

$ 845.3

812.4 31.9

$ 844.3

University of Miami 2011 President’s Report    45

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

$

Transfers in and/or out of level 3

28.3 9.3 10.3

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

Purchases, sales, issuances, and settlements, net

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

12. Bonds and Notes Payable (continued) The annual maturities for bonds and notes payable at May 31, 2011 are as follows (in millions): 2012 $ 27.6 2013 43.5 2014 24.7 2015 22.9 2016 23.8 Thereafter 681.8 Total

13. Net Assets

46    University of Miami 2011 President’s Report

Unrestricted net assets consist of the following at May 31 (in millions): 2011 2010 Designated for operations, programs, facilities expansion and student loans $ 126.4 $ 117.9 Cumulative pension and postretirement benefits related changes other than net periodic benefit cost (208.0) (286.0) Invested in plant facilities 749.3 721.9 Endowment and similar funds 364.0 276.2 $ 1,031.7

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

26.9 $ 89.5 10.7 29.4

$ 156.5

26.2 90.0 8.9 29.3

$ 154.4

Permanently restricted net assets consist of the following at May 31 (in millions): 2011 2010

$ 824.3

Effective December 31, 2010, the University renewed its line of credit arrangement which carries a maximum possible balance of $150.0 million. The line of credit has a variable interest rate equal to the LIBOR Daily Floating Rate plus 0.65% per annum, and has a maturity date of December 31, 2012. The outstanding balance under the line of credit at May 31, 2011 was $15.9 million. On September 28, 2010, the University entered into a 20-year agreement with the City of Coral Gables (the City) that included conveyance of streets and waterways on its Coral Gables campus to the University in exchange for $22.0 million in payments from the University to the City during the life of the agreement. At May 31, 2011, the present value of amounts due under this agreement, discounted at a rate of 6.0%, was $11.8 million. In November 2009, the University borrowed $20.0 million from a bank to fund the Employees’ Retirement Plan. The outstanding balance at May 31, 2011 and 2010 was $14.3 and $20.0 million, respectively. On July 1, 2011, the University entered into a $100.0 million line of credit arrangement. Total interest paid on all bonds and notes was $42.0 and $42.6 million for the years ended May 31, 2011 and 2010, respectively.

Total unrestricted net assets

Temporarily restricted net assets consist of the following at May 31 (in millions): 2011 2010

$ 830.0

Contributions (pledges) and trusts $ 58.9 $ 61.0 Endowment and similar funds 326.5 312.7 Total permanently restricted net assets

$ 385.4

$ 373.7

14. 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, 2011 and 2010, reported in the statements of activities as well as the CASE standards as reported by Advancement (in millions): 2011 2010 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 Donations to supporting organizations recorded under CASE standards only Total gifts and trusts as reported by Advancement

52.6

$

58.5

3.5

8.3

37.7

26.6

11.4

12.1

105.2

105.5

2.6

2.0

40.3

42.9

4.5 .2 4.2

(.3) .4 2.6

6.4

6.4

8.7

-

$ 172.1

$ 159.5

N ot e s to F i n a n c i a l Stat e m e n t s May 31, 2011 and 2010

15. Commitments and Contingencies The University had contractual obligations of approximately $57.8 million at May 31, 2011 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 seven years, totaling $112.0 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. At May 31, 2011, the University has received $59.6 million from the State and has spent $70.2 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, 2011 and 2010 was $24.1 and $21.8 million, respectively. Future minimum lease payments under noncancelable operating leases at May 31, 2011 are as follows (in millions): 2012 $ 6.9 2013 8.7 2014 7.1 2015 6.0 2016 5.8 Thereafter 167.9 Total

$ 202.4

University of Miami 2011 President’s Report    47

U n i v e r s i t y o f M i a m i B oa r d o f T r u st e e s a n d A dm i n i st r at i o n

Leonard Abess 1, 2, 3, 4 Chair Chairman and Chief Executive Officer ThinkLAB Ventures

Wayne E. Chaplin 1, 2, 4 Vice Chair President and Chief Operating Officer Southern Wine & Spirits of America, Inc. William L. Morrison 1, 4 Vice Chair Chief Financial Officer Northern Trust Corporation

SENIOR TR USTEES Michael I. Abrams Co-Chairman, National Government Affairs & Public Policy Practice Group Akerman Senterfitt Betty G. Amos 2, 3 President The Abkey Companies Stanley H. Arkin President Arkin Consulting, Inc.

Jose P. Bared Chairman (Retired) Farm Stores/Gardner’s Super Market Fred Berens Managing Director - Investments Wells Fargo Advisors, LLC M. Anthony Burns 3 Chairman Emeritus Ryder System, Inc.

Charles E. Cobb 1, 4 Senior Managing Director and Chief Executive Officer Cobb Partners, Limited Nicholas A. Crane

Edward A. Dauer President Florida Medical Services, Inc. 1

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

48    University of Miami 2011 President’s Report

Enrique C. Falla, Sr. 2, 3 Executive Vice President (Retired) Dow Chemical Company/ Guidant Corporation Phillip Frost 4 Chairman Ladenburg Thalmann Financial Services, Inc. Phillip T. George 1, 4 Chairman Brava, L.L.C.

Rose Ellen Greene 1

Arthur H. Hertz 3 Chairman of the Board and Chief Executive Officer Wometco Enterprises, Inc. David Kraslow Vice President (Retired) Cox Newspapers Arva Parks McCabe President Arva Parks & Company

Carlos A. Saladrigas Chairman and Chief Executive Officer Regis HR Group Eduardo M. Sardiña

Ronald G. Stone 2 President The Comprehensive Companies Robert C. Strauss

Patricia W. Toppel General Partner Toppel Partners

David R. Weaver 1, 4 Managing Partner and Chairman Intercap Institutional Investors LLC

G. Ed Williamson II Chairman and Chief Executive Officer Williamson Automotive Group Thomas D. Wood Chairman Thomas D. Wood and Company

NATIONA L TRU STEES Adrienne Arsht

Nicholas A. Buoniconti Steven J. Green Managing Director Greenstreet Partners

Carlos M. Gutierrez Vice Chairman Institutional Clients Group Citi

Lois Pope President Leaders in Furthering Education, Inc. Alex E. Rodriguez Major League Baseball Player New York Yankees

TRU STEES Hilarie Bass, Esq. 1, 2, 3 Global Operating Shareholder Greenberg Traurig, P.A. Jon Batchelor Executive Vice President The Batchelor Foundation Tracey P. Berkowitz Joaquin F. Blaya

Norman Braman President, Chairman and Chief Executive Officer Braman Management Association

Marc A. Buoniconti President The Miami Project to Cure Paralysis Alfred R. Camner Camner Lipsitz, P.A. 2

Dara Collins

Laura G. Coulter-Jones

Paul J. DiMare 1, 2 President DiMare Homestead, Inc.

David L. Epstein Managing Partner Presidential Capital Partners

Hal F. Rosenbluth President (Retired) Walgreens Health and Wellness Matthew E. Rubel Steven J. Saiontz 1

M. Christine Schwartz

Laurie S. Silvers, Esq. 1, 4 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 Barbara A. Weintraub

E X OFFICIO MEM BERS Patrick K. Barron Immediate Past President, Alumni Association Steven J. Brodie, Esq. President, Citizens Board Partner Carlton Fields

John E. Calles President-elect, Alumni Association Agency Manager UNIFI Companies Dany Garcia 1, 3 President, Alumni Association Founder and President The Garcia Companies

Peggy M. Hollander 2 Immediate Past President, Citizens Board Managing Partner The Succession Group Donna E. Shalala 1, 2, 3, 4 President University of Miami

EMERITI MEM BERS

Richard D. Fain Chairman and Chief Executive Officer Royal Caribbean Cruises, Ltd.

Bernyce Adler Executive Vice Chairman Adler Group, Inc.

Michael B. Fernandez 1 Chairman and Chief Executive Officer MBF Healthcare Partners, LP

Victor E. Clarke President and Chief Executive Officer Gables Engineering, Inc.

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

Gloria Estefan Estefan Enterprises, Inc.

2

George Feldenkreis 2 Chairman and Chief Executive Officer Perry Ellis International

Thelma V. A. Gibson President Emeritus Theodore R. Gibson Memorial Fund

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

John P. Hussman President/Principal Shareholder Hussman Econometrics Advisors

Manuel Kadre, Esq. 1 Gold Coast Beverage Distributors William A. Koenigsberg President, Chief Executive Officer and Founder Horizon Media, Inc. Bernard J. Kosar Jr.

Jayne Sylvester Malfitano Robert A. Mann

Roger J. Medel 1, 2 Chief Executive Officer MEDNAX Stuart A. Miller 1, 2 Chief Executive Officer Lennar Corporation 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.

Paul L. Cejas Chairman and Chief Executive Officer PLC Investments, Inc.

Edward W. Easton Chairman and Chief Executive Officer The Easton Group

Alfonso Fanjul Chairman and Chief Executive Officer Fanjul Corp. and Florida Crystals Corporation Peter T. Fay Senior United States Circuit Judge United States Court of Appeals, Eleventh Circuit David I. Fuente Board Member Office Depot, Inc.

Florence Hecht General Partner Flagler Greyhound Track Director Southwest Florida Enterprises, Inc. M. Lee Pearce Private Investor

Fredric G. Reynolds Frank Scruggs, Esq. Attorney Berger Singerman Marilyn Segal

Robert H. Simms President and Chief Executive Officer Bob Simms Associates, Inc. Gonzalo F. Valdes-Fauli Chairman Broadspan Capital Marta S. Weeks

Frances L. Wolfson Charles J. Zwick

CORPORATE OFFICERS Donna E. Shalala President

Thomas J. LeBlanc Executive Vice President and Provost

Pascal J. Goldschmidt Senior Vice President for Medical Affairs and Dean, Leonard M. Miller School of Medicine Joseph T. Natoli Senior Vice President for Business and Finance and Chief Financial Officer Sergio M. Gonzalez Senior Vice President for University Advancement and External Affairs

Steve Cawley Vice President for Information Technology and Chief Information Officer 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 Rudy Fernandez Vice President for Government Affairs Larry D. Marbert Vice President for Real Estate and Facilities Jacqueline R. Menendez Vice President for University Communications

Nerissa E. Morris Vice President for Human Resources and Affirmative Action

John R. Shipley 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

Theresa L. Ashman Associate Vice President and Controller Leslie Dellinger Aceituno Assistant Secretary

DEANS Elizabeth Plater-Zyberk School of Architecture

Leonidas Bachas College of Arts and Sciences

Eugene W. Anderson School of Business Administration Gregory J. Shepherd 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 *As of September 13, 2011

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

Member of Executive Committee Member of Finance Committee Member of Audit and Compliance Committee 4 Member of Trustee Service Committee 1 2 3

1213141516171819

www . m i a m i . e du An Equal Opportunity/Affirmative Action Employer University Communications 10-282


2011 President's Report