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U of L Board of Trustees - Finance Committee

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January 11, 2007

In Open Session

The Finance Committee of the University of Louisville Board of Trustees met on January 11, 2007, in the Jefferson Room of Grawemeyer Hall, Belknap Campus, with members present and absent as follows

Present:            Dr. Salem George, Chair
                        Ms. Donna Tinsley Denny
                        Mr. Owsley B. Frazier
                        Mr. Darrell Messer
                        Mr. Bill Stone

Absent: Mr. Ron Butt
                        Mr. Steve Poe

Other Trustees
Present:            Ms. Marie Abrams
                        Prof. Beth Boehm
                        Ms. Bev Daly
Dr. Salem George
Mr. Nathaniel Green
Mr. Grant Helman
                        Dr. Robert Curtis Hughes
                        Ms. Rebecca Jackson
                        Ms. Jessica Loving
                        Ms. Sandy Metts Snowden

From the                                                             
University:        Dr. James R. Ramsey, President
                        Dr. Shirley Willihnganz, Executive Vice President and Provost
                        Dr. Larry Cook, Executive Vice President for Health Affairs
                        Dr. Manuel Martinez-Maldonado, Executive Vice President for Research
                        Ms. Angela D. Koshewa, University Counsel
                        Mr. Mike Curtin, Vice President for Finance
                        Mr. Larry Owlsey, Vice President for Business Affairs
                        Mr. Keith Inman, Vice President for Advancement                   
                        Mr. Dan Hall, Vice President for External Affairs
                        Mr. Tom  Sawyer, Acting Vice President for Information Technology
                        Dr. Dale Billingsley, Associate Provost
                        Dr. Dan Mahony, Associate Provost
                        Ms. Susan Howarth, Director of Budget
                        Mr. John Drees, Assoc. VP for Communications & Marketing
                        Ms. Terri Rutledge, Associate VP for Business Affairs
                        Dr. Boyd Bradshaw, Assistant Provost for Enrollment Services
                        Ms. Pat Arauz, Director of Financial Aid
                        Ms. Jenny Sawyer, Executive Director of Admissions
                        Ms. Carolyn Cochran, Provost’s Office
                        Mrs. Kathleen M. Smith, Assistant Secretary
                        Mrs. Debbie Dougherty, Board Liaison            

Guest:               Ms. Beth Brown, Rowland Design

I.          Call to Order                                                               

            Having determined a quorum present, Chair George called the meeting to order at
            1:00 p.m. 

            Approval of Minutes:    October 12, 2006

Ms. Denny made a motion, which Mr. Messer seconded, to approve the minutes of October 12, 2006.  The motion passed unanimously.

II.         Information Item:  Interim Financial Statements for Period Ending          
            September 30, 2006

Vice President Curtin shared the following revenue highlights:

  • Overall revenues are on target, with 38% of budgeted revenue recognized as of September 30, 2006.  This was slightly more than the expected 25% due to the cyclic nature of tuition revenue. 
  • Tuition revenue – approximately 53% of tuition and fee budgeted revenue has been recognized.  This was due to the fact that Fall and Spring tuition comprise approximately 93% of total tuition, and as of September 30, 2006, half of this (the Fall semester) has been realized.
  • Clinical revenue-the majority of the revenue budgeted for Clinical and hospital revenue was the $10.6 million of expected revenue from the surplus cash of UMC.  This revenue was not recognized until June 30, when the information becomes available from UMC.


Vice President Curtin highlighted information concerning the expenses:

  • Overall expenses matched closely with budget as there was 74% of the budget remaining for the remainder of the year.
  • Scholarships and Fellowships-due to the timing of the tuition charges, approximately 48% of the budget for scholarships has been used.
  • Service Centers-the service centers have offset their expenses with approximately $7.5 million in charges to other departments. 
  • Debt Service-debt payments are due in November and May of each year; there was no expense related to debt service as of September 30, 2006.


Noting this report required no action, Chair George thanked Vice President Curtin for the update.

III.       Action Item:  Approval of Creation of New Corporation with the Owensboro
            Medical Health System, Inc.

Dr. Cook reported the University administers the research programs of the James Graham Brown Cancer Center (“JGBCC”).  In order to expand the research outreach of UofL’s JGBCC the University has entered into negotiations with Owensboro Medical Health System, Inc. (“OMHS”), a hospital provider in Daviess County, to establish a cooperative research venture between the University and OMHS.  If these negotiations result in an agreement, the University would operate the research venture through a legally separate membership corporation in which the University and OMHS would be equal members.  President Ramsey and Ms. Koshewa fielded questions concerning the arrangement.  Mr. Stone made a motion, which Mr. Frazier seconded, to approve the

President’s recommendation that the Board of Trustees approve the creation of a new non-stock corporation, to be established as a Kentucky not-for-profit corporation in cooperation with Owensboro Medical Health System, Inc. (“OMHS”), under the provisions of KRS Chapter 273, and authorize the University to be a member in such corporation.

The motion passed unanimously.

IV.       Report on Financial Aid

Provost Willihnganz reported the University has made a strategic commitment to increase resources for enhancing the undergraduate education experience with successful recruiting, admissions and financial aid programs.  The ACT average of entering classes has risen from slightly above the national average of 21 to 24.2.  The number of students with ACT scores of 30 or higher has almost doubled.  The University now has students from 30 states, 10 countries and all 120 Kentucky counties.  Sixty-two percent of freshman live on campus. 

Dr. Bradshaw stated the University has added resources to maintain or increase a diverse enrollment.  The Enrollment Services outreach is personalized for every prospective student, and the University has begun efforts with the Hispanic community to insure the freshman class more closely reflects our community.  He noted the University was reviewing procedures to improve transfer student admission from the community colleges. 

Dr. Bradshaw reported the Scholarship Task Force proposed three recommendations to enhance financial aid for students:  1) limit stacking of scholarship awards; 2) leverage awards with schools, colleges and other university departments to utilize public and private funds; and 3) create a new community college transfer scholarship (including KCTCS transfers).  Dr. Bradshaw commended Ms. Jenny Sawyer, Executive Director of Admissions, as one of the reasons the University has done so well in recruiting students.

Ms Arauz explained the proposal for the Cardinal Covenant Program, which will make college attainable for 22.6% of Kentucky families living at or below 150% of the federal poverty level.  UofL is the first school in Kentucky to implement this type of program, which promises qualifying students can attend college debt free as long as they graduate within five years and remain federally eligible.  Ms. Arauz noted some schools base eligibility on the student being a first generation college student; others base student status on family income using adjusted gross income, or look at total income in relation to the federal established poverty levels. In all cases, families must complete the Free Application for Federal Student Aid (FAFSA) and be Pell Grant eligible. 

In its first year, the University projects 150 students will qualify.  Anticipated financial costs are $250,000, with administrative costs of $100,000.  Costs will grow each year as a new class is added.  Ms. Arauz will work with the Development Office to recruit donors to support and expand the program.  With help from the Admissions and Marketing Offices, communications materials and strategies to promote the Cardinal Covenant will target low-income families throughout the state. 

Ms. Arauz stated 42% of 2005 UofL undergraduates had student loans.  Average debt amounted to $15,128.  The national average was $19,200 for all schools and $17,250 for 4-year public schools. 

In response to Mr. Green’s inquiry regarding budget aspects of the program, President Ramsey explained the University would budget these funds from existing sources. Mr. Stone made a motion, which Ms. Denny seconded, to approve the

President’s recommendation that the Board of Trustees approve the establishment of the Cardinal Covenant program, effective Fall 2007.

The motion passed unanimously.

V.        Update on Stansbury Park Master Plan

President Ramsey discussed the tension between improving facilities and parking, while trying to maintain livability and green space.  Stansbury Park is contiguous green space for the campus but it is not attractive and functional.  Working with Rowland Design, a conceptual plan for UofL gateways that affected Stansbury Park emerged as a potential opportunity. Neighborhood groups, the Mayor of Louisville, Kentucky’s Department of Transportation and the Olmstead Conservancy reviewed the concepts.  From all these discussions, the Mayor invited Dr. Ramsey to refine the proposal so that implementation could move forward in the City capital plan.  Ms. Brown, Principal with Rowland Design, presented a plan for the western entrance at the Oval and then the Stansbury Park master plan.  Mr. Stone praised the plan as incorporating the Cardinal spirit. Mr. Frazier made a motion, which Mr. Stone seconded, to approve the

President’s recommendation that the Board of Trustees authorize the President or his designee to execute appropriate action related to the Stansbury Park Master Plan and to work with Mayor Abramson to secure implementation of the master plan through Metro Government.

The motion passed unanimously.

VI.       Report of the President

Executive Vice President for Research

President Ramsey introduced Dr. Manuel Martinez-Maldonado.  Dr. Martinez began work on January 1, 2007, with the University as the new Executive Vice President for Research.  With his leadership, the University hoped to contribute substantially through intellectual property, new drug development, and other innovations.  Dr. Martinez follows on the good work of Dr. Nancy Martin.

Orange Bowl/Football

President Ramsey reported that at the request of Darrell Messer, the President’s Office, partnering with Athletics, subsidized the trip to the Orange Bowl for more than 500 students.  For $100, students received two (2) nights lodging in a 3-4 star hotel in Miami, a ticket to the Orange Bowl ($125 value), a ticket to the Alumni Association tailgate on game day ($20 value), and free parking for the game. 

The Presidential Party included nearly 150 traveling on charters and provided nearly 400 tickets to friends and donors as a member of the Official Party.  President Ramsey asked everyone to thank Trisha Wolf, who did a tremendous job managing the logistics of  the presidential party’s travel.  Dr. Ramsey asked Vice President Jurich for comment.

Vice President Jurich thanked all those who attended Orange Bowl events.  Forty thousand UofL fans purchased tickets, which was the second highest attendance for any Orange Bowl, second only to Ohio State.  The entire football operation and the marching band attended; UofL’s fan appreciation party exceeded 3,000, which was the largest in Bowl history.  The publicity from the event was outstanding.  The exposure will help recruitment both academically and athletically.  Mr. Jurich recognized Kevin Miller for his excellent work.  He also expressed appreciation to Ms. Kathleen Smith as a valued colleague who has been invaluable to him and his staff during his tenure at UofL.  Chair Ramsey reiterated the sentiment toward Ms. Smith, noting her excellent years of service.   Ms. Smith received a round of applause.

President Ramsey expressed appreciation for Vice President Jurich’s leadership.   Dr. Ramsey said Coach Kragthorpe attended the recent Faculty Senate meeting to share his enthusiasm for the University’s total program.  Coach Kragthorpe will commit to every facet of the University.


President Ramsey reported the Spring semester was off to a great start.  The upcoming legislative session was short, but important.  He hoped all previously vetoed projects will be restored.  The session outlook was positive.  Each trustee was given a Cardinal Champions CD-style calendar, which showcases an academic and an athletic achiever of the month, along with an Abbie Gregg, Inc. consulting calendar, which featured University of Louisville’s Belknap Research Center Clean Room. 

VII.      Adjournment

            There being no further business to discuss, Mr. Stone made a motion, which Mr.
            Messer seconded, to adjourn the meeting at 2:20 p.m.  The motion passed


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