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Good morning, everyone. Thank you for joining us. It's a beautiful summer day for our August meeting for the Board of Trustees. As usual, this meeting is conducted openly and transparently pursuant to the Utah Open and Public Meetings Act. And we welcome the members of the public who are here to attend and to observe the decision-making process.

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I'd like to welcome and introduce Amy Frampton, our newest Trustee.

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President of the Alumni Board of Governors. She's a marketing leader who's worked in senior

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roles across high growth tech companies. She's co-founder of inflection marketing, where

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she advises founders, CEOs, and other senior executives to translate customer insights

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into clearer positioning, stronger messaging, and more effective go-to-market strategies.

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I think we can use your skills well here.

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We're glad to have you here.

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We'll excuse Randy Schumway today.

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He's unavailable to attend.

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But Karen, Marriott, Happy Birthday.

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Thank you.

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Happy Birthday.

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Thank you.

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Thank you.

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Thank you.

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Thank you for joining us.

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I think that...

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Where's everyone?

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I thought Kathy was going to sing a happy birthday solo to Karen this morning.

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Wasn't that a plan?

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Please.

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Yes, please.

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They outloaded me.

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Well, wonderful.

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We'll just get underway then.

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I'd like to thank the trustees for all of their diligence and preparing for this meeting,

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reviewing the items on the agenda, working with their committees and putting in so much time

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so that they're well prepared.

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Consent items have gone through the university's established processes and we're appropriate

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they've been reviewed by the appropriate board committees before being presented today.

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You've all had a chance to look through them.

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I would ask if there's a motion to approve the items on the general consent agenda.

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We have a tie.

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four-way tie. I thought I saw Kathy raise your hand. So Kathy for the motion a second.

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Thank you. We have a motion in a second for approval. All in favor say aye.

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The opposed. I'm standing. Thank you. Motion passes. Thank you for your support.

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And then this work gets fun. We go to the action agenda.

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and I'll invite Jeff Labron, the chief operating officer to present item 3.01 on additional elevators at Rice Ethel Stadium.

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I mean, could it get more exciting than additional elevators on Rice?

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Good morning trustees. Can you just turn that a little bit?

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Karen doesn't want to miss this.

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Okay, wonderful.

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wonderful. It's grateful to be here this morning. We do have an exciting project to bring forward in

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front of the trustees this morning. As many of you experienced, Rice Eccles is a wonderful venue.

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It's venue and home to our football team and also a lot of other events. We have a west side tower

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that provides us opportunities to have social events, educational events, etc. One of the challenges

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with that space is getting up and down to that. If you've ever tried the stairs, going down as an

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adventure going up is training for a marathon or some other type of race.

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So we are coming for today with a proposal and an ask to approve the addition of four

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more elevators.

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There are currently four in the north tower and two in the south tower.

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We would like to double that capacity.

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That is not only for patron access, which it certainly will be, but also to improve the

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back-of-house operations, such things as food and garbage going up and down, etc., and

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not having that go through or not go on the same elevators as people.

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So we're pretty excited about the project.

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This is something that auxiliary services will pay for.

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As a reminder, the stadium is an auxiliary building that we maintain, we repair, we improve,

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we've done a lot of exciting things there over the years and this will continue to add

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to that list.

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Auxiliary Services has the funds available to do it.

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It's about a $20 million project.

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We are currently in the feasibility stage, but based on timelines and the ability to order

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elevators, we'd like approval to move forward.

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We will then come back to our campus master plan group, which we've met with here recently,

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to work on the actual design of the facilities.

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We've provided some renderings.

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They are essentially nothing more than that.

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and some possibilities as to how those elevators might fit.

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But this gives you an idea of sort of the massing

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and the size of those elevators.

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Again, we will come back to the campus master planning group

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to walk through the actual design of those things.

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But we are looking forward to increasing our capacity,

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increasing the experience or improving the experience for our fans

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and all those that participate in the West Side Tower

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and continue to use more of those floors and spaces

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in an efficient, effective way.

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So I appreciate your support of moving forward on those elevators.

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Any questions?

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Jeff, is there anything else included in this project?

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Or is there 20 million literally for the four elevators?

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Is there something else maybe structural beyond?

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So the elevator structure and all that would go into that is in that $20 million

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number, but it's specifically for the elevators to make that happen, yes.

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I should I should have mentioned that we believe if we can get moving forward

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Here right away that we could have those elevators up an operational for by August next year

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Which would be before then the next of all season?

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I'm pretty excited about

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What about access to the red zone?

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So the access to the red zone continues to be from the south as well as there's some

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Connecting no connecting no connecting these goes these go up the west side tower. They wouldn't connect

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I'm sure you got somebody help me with that

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I'm going to repeat that back to you so you can sort of give us a nod or help me.

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Are there other things that we would need to do to the stadium for the 2034 Olympics?

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I think it's what we all heard.

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That's right.

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Okay, wonderful. This is a big step. This is a huge step in the right direction, right?

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So, enhancing that VIP experience, the opportunity to get up to those towers for the Olympics.

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This is a big step in the right direction. We will continue to monitor and look at things

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that we can do. The Olympic groups certainly would love for us to do a lot of things there,

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but based on our budget and based on the things that we need as a university, we'll continue

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We needed to bait and make those improvements as we can.

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Jeff, I think we, I for one would just appreciate hearing you.

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I think we all trust you so much, your judgment that the cost is, that is the cost that we need to spend.

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It's meaningful. It seems to a layperson like a lot of money for poor elevators.

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But please give us some comfort around that cost.

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Yeah, great question. We do not take these things lightly and $20 million is a significant

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dollar amount that could be used in a lot of places. This is auxiliary funding, so it's

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not state funding. These are funds that the exories have generated, but we have done a

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lot of work there by saying over time with a lot of different groups to make sure that

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we are being efficient in the way that we spend those dollars and that we have to spend that

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amount and elevators going up six stories times four is an expensive thing to do but we do believe

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the investment is worth it and that there's returns on that investment not only in fan experience

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but our ability to continue to do great events in that in that west out. Thank you. And I appreciate

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we had a good conversation in the campus master plan committee discussing the look and feel of it

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This will be an iconic view during the opening and closing ceremonies of the Olympics

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with the 2002 Calder nearby, perhaps the 2034 joining in at some point.

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And when the world looks and has a view of this, we wanted to make sure that that is what

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we want to present as our best side from the University of Utah.

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So that's why it will come back to Campus Master Plan to review that design and make sure

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that we are protecting that iconic look of the stadium.

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Any other questions and concerns?

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Okay.

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Thank you.

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I will ask if there is a motion to authorize the Elevator Edition project, as presented,

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provided that the final project design is reviewed and approved by the Board's Canvas Master

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Planning Committee prior to the commencement of construction.

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Thank you, Basan.

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We have a motion.

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Is there a second?

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Thank you.

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We have a motion and second for approval, all in favor say aye.

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Aye.

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Any opposed?

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Any abstain?

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Thank you.

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Thank you.

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In the last legislative session, the State Legislature passed a new requirement for the Board

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of Trustees to approve the University's annual budget.

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And we have long held delegated authority to, over the University Hospital and Clinics

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budget, but this is the first time we've done an institutional wide university budget.

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So in June, you'll remember that we have presentations from hospitals and clinics and ARUP on

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their budgets, and then today our enterprise CFO, Gary MacArthur, will present the university's

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overall budget.

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I'll note that the CFO and his team have presented this budget to the budget and finance committee,

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along with small group presentations to all the rest of the trustees in preparation for

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day's vote.

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They've had the opportunity to ask questions and probe.

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And I appreciate y'all's time in your team, Gary's, as well as the trustees time putting

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in preparation and understanding of this.

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So thank you.

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I'll turn the time over to Gary to present.

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Thank you all.

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Appreciate being here.

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As Chairman Nichol said, I'm new to the University.

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I'm the new Enterprise CFO.

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I joined in April as Deputy CFO and I think I took over

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officially in this role of July 1st.

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So I guess being the new guy, I can do some things,

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you know, hopefully and share some things today

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that will be meaningful to all of you.

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But jumping in before I get into actually the FY27

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budget numbers, I wanted to talk about what this team,

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the team that I was so fortunate to join has done over the last several years because

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their accomplishments are very admirable.

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If you were to look at the slide you can see that total revenues have grown pretty substantially

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from like 6.6 billion to 10.2 billion.

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That's like a 56% kind of growth rate.

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Student enrollment in that 25 period and 26 topped over 38,000 students.

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I believe the number I've heard for this year's Fallen Roman is going to exceed 39,000

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is what I've heard, and that will be the largest enrollment ever.

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Last year, Provost Montoya told us all that we graduated more students than ever before

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in the University of Utah, so 9,000 students roughly graduated last spring, so pretty amazing

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and what we're doing in those areas.

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Tuition and fees, again, have gone up,

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but we've been able to keep those relatively, you know,

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lower to support the state

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and being able to bring new students on board.

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Two other areas that are really important to us,

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Heidi Smiley, over here,

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because she leads the investment group.

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And as you can see, that endowment is almost doubled.

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from just over a billion to 2.1 billion and then you look at research awards here, C and again, a great growth over that time period, 641 million to 782 million.

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I am very fortunate to be joining an amazing team, amazing board members that we have, amazing leadership that are doing good things for the University of Utah

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and continually work in the university's behalf as well as the states.

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If you were to think about the university, we're fairly unique in, we compare ourselves

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to other universities in the state.

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We obviously have a premier institution that's been around since, I think, 1850s when it says

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over a hundred major subjects.

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But people don't realize when we're going to share today how big our health system is.

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You think of Huntsman Cancer Institute, you think of hospital and clinic and all the

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good that they do in the state and what wonderful resources they are.

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Research innovation.

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We have that research hub.

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Today, you're going to see some numbers that we've usually haven't shared out there in

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this manner on ARUP and what they've been able to do as part of that research hub.

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And then we are in a credited, respected university, you know, recognized by the AAU.

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So pretty phenomenal institution to be a part of.

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We do have a lot of ambitious goals.

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If you were to look at this page, you could say, okay, getting graduation rates up, and

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placements rates up.

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We do pretty good, but we're working on doing better.

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They think about health systems.

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You've heard announcements about West Valley,

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vineyard with Huntsman Cancer Institute,

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recently talking about moving to a new campus

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at the point of the mountain.

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So a lot of work going on there to continue to serve us.

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Patients, and to broaden our reach into the state. Thinking about campus infrastructure, we took the numbers off the page, but, you know, it's not insignificant. I just mentioned all of those hospital and clinic initiatives. We just cut the ribbon this weekend on Fort Douglas and what that's doing for college town magic. If you were to look at what we're trying to achieve, you know, we're going to try to spend just under $5 billion over the next

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five years to fund all these opportunities that are going to benefit the state.

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So I guess that's a plug for all you donors out there that are listening that we're doing

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some amazing things.

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I mean, funding for this comes from bonding, it comes from donations, it's going to come

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from improved operating performance, but that's where the money is going to come from.

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Athletics, you all know about Crimson Brand Partners.

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Is that a solve all for all of our challenges and athletics, not at all?

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But is it doing the right things to keep us in the game and move us forward?

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Absolutely.

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And then last year, we talked about how we served the university.

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All Utah's in the state and President Randall has not been shy.

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He wants us to become the top 10 university in the state of Utah.

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And we're moving down that path and working hard to do so.

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However, if you think about the environment we find ourselves in, it's not all rosers.

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We have lots of challenges, as we say on the screen.

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We are expecting cuts in federal funding and not having as much research awards which

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is reflected in our buzzard.

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We do have challenges in the healthcare side, the big beautiful bill and all the different

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challenges it brings to hospital and clinics.

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So in this environment, we put together the first time, I think the University has shared

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this in this way, an enterprise budget for FY27.

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So let's jump into the numbers.

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If you were to look at the revenue kind of outstanding, this is just operating revenue

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just under $10 billion for this institution.

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It's a big institution without, you know, saying much.

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You can look at net tuition and fees, state appropriations.

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I will say state appropriations is very important to us.

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It's about 6% of our revenue.

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We'd like it to be more.

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It is, if you were to look at how we compared other institutions,

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it's on the lower side of what is received by the state

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for an institution, so from, you know,

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like ourselves, University of Utah.

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So I guess this is my plug to state legislature.

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You know, we'll use your money well.

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please help us in funding the University because we're doing good things.

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Looking at the expense lines, not a surprise that salaries, wages, and benefits are the

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biggest expense in the University.

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They represent about 55% of our expenses and you go down the line, probably not surprising

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again, supplies and medicine with our hospital and clinic and Huntsman being the next largest

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area of expense.

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We're going to focus, I've got a slide I'm going to hear in a minute that's going to focus

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is on what we call operating income less depreciation,

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because that's kind of what we control.

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And that is roughly $530 million.

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And if you jump all the way down here

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to the bottom line, we're talking about $693 million of income.

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I don't want to skip this non-operating revenue

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to $643 million.

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So the chart I showed you before said FY26 roughly $10.2 billion.

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That was a combination of revenue from operations and non-operations.

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This budget would say we're going to do roughly 10.6 billion in FY27.

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So good growth there.

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Looking at this slide, this is an important one for the CFO.

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We're going to focus here on operating revenue and when I said operating income less appreciation.

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You can see FY25, that's an actual number, roughly 8.7 billion.

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FY26, we're in the middle of closing our books.

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We'll have actual numbers late September. They'll get audited.

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We'll publish something in October.

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But our expectations are that we're going to come in around 9.5 billion.

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We're budgeting roughly 10 billion from operations.

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as I showed you on the other slide for FY27.

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Looking at this op-income before depreciation and amortization,

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you can see good growth there.

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This yellow line represents the margin.

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That is an area of opportunity for improvement

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that we're going to be working on.

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So we've been growing our revenues.

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Our expenses have grown kind of proportionally,

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and our margin is stay pretty much flat.

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So we're going to be introducing several initiatives

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and FY27, they're going to help us improve that operating margin so that when we get into FY28, we're in a better place.

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The last slide I'm going to share is, I hope, something that we haven't done before.

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We are organized into six different operating units.

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academics, our communities, health systems, ARUP, Central, think of that as the presidents

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and people like myself, HR, CFO, other organization, in a world of non-public universities, you

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could think of it as corporate, where it benefits the greater of all the reporting units

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and it's kind of central, but if you look at that, again, it ties out to the number of a consolidated, just under 10 billion, and we're going to budget for next year, 693 million in total income.

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Let me just conclude by saying the University of Utah is building on a solid foundation and very proud to be part of this institution, with that I'll turn it back over to you.

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Thank you.

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Appreciate that.

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Do you like good news?

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Great trajectory.

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Great team.

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Appreciate all you're doing on this inaugural institutional budget that will keep working on.

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Thank you.

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Thank you.

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Does anyone have any questions for Derry?

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Trying to sit down.

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00:21:32,630 --> 00:21:34,290
Derry, just a quick question.

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00:21:34,690 --> 00:21:35,850
I didn't notice this last time.

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00:21:36,250 --> 00:21:38,730
Is the revenue line for Central?

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00:21:38,950 --> 00:21:40,690
Is that an allocation from other lines?

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00:21:40,690 --> 00:21:43,390
It is basically what the university has done.

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It receives tuition from students.

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It receives state appropriations.

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It actually allocates that equally to academics.

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Think of that as all the colleges.

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And then 50% to central.

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Because it is actually, as I said, an organization

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that supports the entire university.

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And so that revenue is really an allocation

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of those state appropriations and tuition of things.

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Thank you.

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Thank you.

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Any other questions?

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00:22:14,760 --> 00:22:15,040
All right.

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00:22:15,580 --> 00:22:18,000
Well, thank you very much, Gary, again.

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00:22:18,320 --> 00:22:21,260
And is there a motion to approve the University budget as presented?

321
00:22:21,740 --> 00:22:22,220
So moved.

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00:22:22,620 --> 00:22:23,720
Thank you, Kurt, a second?

323
00:22:24,060 --> 00:22:24,640
I'll second it.

324
00:22:24,680 --> 00:22:25,980
Thank you, Christina, for a second.

325
00:22:26,520 --> 00:22:27,840
We have a motion and a second.

326
00:22:28,160 --> 00:22:29,300
All in favor, say aye.

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00:22:29,680 --> 00:22:30,020
Aye.

328
00:22:30,460 --> 00:22:31,080
Can you opposed?

329
00:22:32,040 --> 00:22:32,680
Can we abstaining?

330
00:22:33,260 --> 00:22:34,500
Thank you, the motion passes.

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00:22:34,820 --> 00:22:35,240
Thank you.

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00:22:39,740 --> 00:22:41,840
Next, we have the University of Utah

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00:22:41,840 --> 00:22:43,840
of Rose Capital Partners Foundation,

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and the outsourced Chief Investment Officer,

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I love all these long titles.

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But they are, these gentlemen are required to annually present

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to this board about the investments

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and current and past performance of the endowment pool.

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00:22:59,280 --> 00:23:02,340
The foundation was established just a couple of years ago,

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00:23:02,700 --> 00:23:04,400
and then it conducted a robust search

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for, to select its OCIO.

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00:23:08,180 --> 00:23:10,460
And so this year is their first presentation,

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00:23:10,460 --> 00:23:16,420
a lot of first this year. So David Anderson, CEO of the Growth Capital Partners Foundation

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and Mark Sitaway, President of Signature Capital Management, are the ICIO to present.

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00:23:22,940 --> 00:23:24,280
So I'll turn the time to you, gentlemen.

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Thank you very much, Chair Eccles. And thank you much, Trustee, for giving us an opportunity

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00:23:29,360 --> 00:23:33,440
to talk a little bit about this. We take the contribution that the endowment can make

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to the university very seriously. It's a large pool of money. And we think that we have

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opportunity if it's managed appropriately to be able to make much more significant contributions

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to the operating budgets of the university. I'm going to give you just a little bit of

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00:23:49,660 --> 00:23:51,740
that. Am I doing that right?

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00:23:57,440 --> 00:24:06,520
I want to just talk about two things and then I'm going to turn

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00:24:06,520 --> 00:24:11,400
the time over to Mark Sidoway, who is the president of the Signature Capital Management, which is

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the OCIO portion of the Signature Group, which is a financial services group in general.

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00:24:18,500 --> 00:24:24,020
We've gone through a lot of change since establishing the DSL of the foundation about

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00:24:24,020 --> 00:24:30,480
four years ago, and what we've done particularly with respect to the endowment is the part

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that you were a part of, and that was changing the over-allocation policies that the University

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00:24:35,380 --> 00:24:40,860
had to be much more aggressive, but much more in line with what other universities do with

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00:24:40,860 --> 00:24:46,380
respect to their endowments. To give the endowment an opportunity to actually earn more money

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and take advantage of what is really the strategic benefit of being an endowment, and that

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00:24:51,920 --> 00:24:57,100
is to be able to take a very, very long-term view and not be as concerned about the short-term.

362
00:24:58,000 --> 00:25:05,240
So that was the asset allocation policy that in 2023 this board adopted. In 2025, in April,

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00:25:05,240 --> 00:25:11,260
So literally just over a year ago when we appointed Son of Sure as the OCEIO of the endowment

364
00:25:11,260 --> 00:25:12,440
starts to take over that.

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00:25:12,580 --> 00:25:16,060
So they really weren't in control of the endowment until just over a year ago.

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Then as a part of the process of trying to modernize what we do and make more information

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available, we appointed a trustee custodian to handle basically all of the ins and outs

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00:25:29,080 --> 00:25:33,560
in the plumbing of the endowment and to make available all of the information.

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And that really happened in November of last year when they actually were in position

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to do that.

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And it wasn't until February of this year where they were able to go through all the historical

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information that we had on the endowment and reconcile them from the various service

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providers that we had prior to that time so that the numbers were actually all on a consistent

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basis historically and we could be confident that we were reporting the right numbers.

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So there's been a lot of change in that, and I think all for the good.

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The second thing that I just want to point out, and that is that the 2023 policy you

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00:26:11,140 --> 00:26:15,980
can see, was a fairly significant change, particularly with respect to private investments

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00:26:15,980 --> 00:26:21,580
that the endowment might do, which offered the opportunities to develop higher returns

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00:26:21,580 --> 00:26:26,160
by being much more careful about the focus, the picking of the managers that we have.

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00:26:27,040 --> 00:26:32,360
And then, so that was a major change that hadn't been changed for almost eight years.

381
00:26:33,400 --> 00:26:38,240
And the current way to that is very much in line with what we have in our allocation

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00:26:38,240 --> 00:26:39,000
policy.

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But we still have a lot of wood to chop.

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We have quite a ways to go to be able to get to where we have, as a target with respect

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00:26:47,160 --> 00:26:50,880
to private investments, we're not there yet.

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00:26:50,880 --> 00:26:58,160
And the reason for that is we're trying to spread that over a period of time as opposed

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00:26:58,160 --> 00:27:05,320
to having a whole series of private investments that are basically from the same year and we'll

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00:27:05,320 --> 00:27:11,100
have capital calls that will actually end up coming very much at the same time and put a lot

389
00:27:11,100 --> 00:27:12,040
of pressure on it.

390
00:27:12,340 --> 00:27:13,960
We spread that over a period of time.

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00:27:14,460 --> 00:27:20,000
So it will take us several more years before we actually get to the allocation that the board

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00:27:20,000 --> 00:27:26,520
has approved. But we are making super progress in doing that. I just wanted you to be aware of the

393
00:27:26,520 --> 00:27:31,780
change to that. So Mark is going to talk about the performance, the liquidity, some of the processes

394
00:27:31,780 --> 00:27:35,500
that they go through, and then we'll be able to answer any questions that you have.

395
00:27:39,400 --> 00:27:44,920
So maybe to start, I just want to put all of this in context for the university as a hold.

396
00:27:44,920 --> 00:27:51,280
You know, the reason that institutions create permanent capital, you know, an endowment

397
00:27:51,900 --> 00:27:54,540
is to solve kind of two problems you've got.

398
00:27:55,000 --> 00:27:59,720
We just went through the budget, and there's tons of spending and resource that needs to

399
00:27:59,720 --> 00:28:03,740
be done today for today's students and for the state today.

400
00:28:04,420 --> 00:28:08,440
But there's also looking out into the future, and what is the future going to bring and

401
00:28:08,440 --> 00:28:13,580
are we going to be prepared to continue to bring this university and the state into the

402
00:28:13,580 --> 00:28:17,100
years but common and what is the nest egg that we need to have.

403
00:28:17,940 --> 00:28:20,240
So this endowment has to solve two problems.

404
00:28:20,420 --> 00:28:23,160
It has to help with today's spending.

405
00:28:23,980 --> 00:28:30,260
And we think about that in terms of an essential return that the endowment has an essential

406
00:28:30,260 --> 00:28:31,600
goal for today.

407
00:28:32,560 --> 00:28:40,080
And right now the university's spending policy is to spend roughly 5% of the endowment

408
00:28:40,080 --> 00:28:40,660
for today.

409
00:28:40,660 --> 00:28:48,120
So we need to make sure that we're generating at least a 5% return on the investments to

410
00:28:48,120 --> 00:28:49,740
order to make that spending.

411
00:28:51,060 --> 00:28:55,560
The problem with that spending policy is next year and the year after and the year after

412
00:28:55,920 --> 00:29:01,300
that 5% in real terms is diminished by inflation and costs.

413
00:29:01,960 --> 00:29:04,900
20 million dollars to build four elevators.

414
00:29:05,380 --> 00:29:07,520
It's like that's the world that we live in.

415
00:29:07,520 --> 00:29:12,080
And ten years from now, it's probably $40 million to build for elevators.

416
00:29:12,780 --> 00:29:18,980
So you need the investments to grow at a rate above the 5% spending to keep up with inflation.

417
00:29:20,160 --> 00:29:23,660
Inflation historically has been somewhere around 2 to 3%.

418
00:29:23,660 --> 00:29:31,260
So that gets you to kind of an 8% return that is kind of your market return that you want to keep up with.

419
00:29:32,360 --> 00:29:37,840
inflation, and make sure that the endowment is growing in real terms at that 5%.

420
00:29:37,840 --> 00:29:40,660
But then you have sort of an aspirational goal.

421
00:29:41,400 --> 00:29:45,680
We want to get higher return than 8%, and the reason that you want to have a higher return

422
00:29:45,680 --> 00:29:50,420
is you want to be able to actually grow your endowment and your spending power over time,

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00:29:50,900 --> 00:29:57,380
so that impact that you have on the state and on the students will just continue to grow

424
00:29:57,380 --> 00:29:57,940
and flourish.

425
00:29:58,680 --> 00:29:59,980
And the...

426
00:30:00,000 --> 00:30:29,980
Also, the other thing, you know, the goal of the president, he wants the university, you know, to be a top 10 school. And when you go through the metrics that the US News and World Report in these places, the ranked universities, the unknown secret in there is in that formula, it comes down to money, comes down to how much does their football team generate, how big is their endowment. And the size in the endowment,

427
00:30:29,980 --> 00:30:35,180
is one of the things that is key to making the university a top 10 school.

428
00:30:36,100 --> 00:30:40,820
And if you look at the top 10 schools in the rankings, they have massive endowments.

429
00:30:40,940 --> 00:30:43,960
$2.2 billion of the university taught is a ton of money.

430
00:30:44,360 --> 00:30:48,900
It's tiny compared to the other schools that are in the top 10.

431
00:30:49,740 --> 00:30:51,280
How do you grow that endowment?

432
00:30:52,500 --> 00:30:56,460
It's through investment return, but as I said, if you're getting,

433
00:30:56,460 --> 00:31:08,900
Let's make them at easy, a 10% return, you're only growing your endowment by 2% in real terms because you're spending 5 and your inflation is eating away at 3.

434
00:31:09,500 --> 00:31:20,500
So growing at 2% is great, but it's not going to get you, you're not going to get from 2 billion to 30 billion with a 2% return over the next 20 years.

435
00:31:21,360 --> 00:31:29,640
You need people out there bringing in donations and the thing that is going to bring in donations

436
00:31:30,110 --> 00:31:31,580
is the return on your endowment.

437
00:31:32,180 --> 00:31:37,040
Because if I want to donate to the university and I say, wow, the university is able to

438
00:31:37,040 --> 00:31:42,440
get a 10% return, I'm not able to do that, I don't know how they're doing that, I'm going

439
00:31:42,440 --> 00:31:48,140
to donate to the university because they have this investment program that is compounding

440
00:31:48,140 --> 00:31:53,820
high rates return and if I give money to the university today in ten years it's going

441
00:31:53,820 --> 00:32:00,320
to be that much bigger and so it helps with fundraising and it brings the whole sort

442
00:32:00,320 --> 00:32:07,760
of corpus together. So this endowment management even though $2.2 billion in the whole scheme

443
00:32:07,760 --> 00:32:14,000
of how big the university's assets are, it's tiny and what we actually that 5% spending

444
00:32:14,000 --> 00:32:20,600
that we generate on an operating budget of $10 billion is a couple of days of, you know,

445
00:32:22,500 --> 00:32:27,260
but it's significant because it becomes the face of the university to donors and to

446
00:32:27,260 --> 00:32:32,160
the public, and it becomes a source of just like a great football team, a great basketball

447
00:32:32,160 --> 00:32:36,280
team, we've got a great endowment that looks at the returns that we have, and if you look

448
00:32:36,280 --> 00:32:43,320
look at the aspirational schools that we all sort of try to emulate, it's, you know,

449
00:32:43,520 --> 00:32:49,720
the yellows and the standards of the world, it's the academics, but it's also the

450
00:32:49,720 --> 00:32:52,360
performance of the endowment, at least in the world that I live in.

451
00:32:53,640 --> 00:32:59,380
So with that context, I'm sorry to keep going on about that, but that context, that's why

452
00:32:59,380 --> 00:33:06,800
asset allocation in 2023 because what you're trying to do is reach those

453
00:33:06,800 --> 00:33:13,360
aspirational goals without sacrificing the essential spending. You want to be

454
00:33:13,360 --> 00:33:17,240
able to invest for high return but not in the way that it impairs your ability

455
00:33:17,240 --> 00:33:21,560
to spend the 5%. You want to get into a situation where you have no liquidity

456
00:33:22,400 --> 00:33:28,240
or there's a market drawdown and you're not able to make that 5%. So an asset

457
00:33:28,240 --> 00:33:32,860
That allocation that was passed in 2020 period is trying to solve those two issues.

458
00:33:33,580 --> 00:33:40,400
You have at the top of the funnel, growth assets that are going to give, hopefully, high

459
00:33:40,400 --> 00:33:40,780
return.

460
00:33:42,080 --> 00:33:47,320
And the key is the asset allocation is there to do it, but it's the implementation.

461
00:33:47,760 --> 00:33:52,200
How do you implement to make sure that you're getting the returns that you expect from this

462
00:33:52,200 --> 00:33:52,940
asset allocation?

463
00:33:52,940 --> 00:34:00,120
And then down here at the bottom you have sort of an essential bucket that is there to

464
00:34:00,120 --> 00:34:04,720
hopefully create that 5% that you can get here in and here out.

465
00:34:05,520 --> 00:34:12,660
And so what it really comes down to is growth assets and yield assets, debt and equity.

466
00:34:14,380 --> 00:34:20,700
And so that's where the university was, that's where the allocation is today and this is

467
00:34:20,700 --> 00:34:22,920
is where we are trying to move in that direction.

468
00:34:23,880 --> 00:34:25,900
We put ranges around the policies

469
00:34:25,900 --> 00:34:30,560
because you want to have the target that's going to get there.

470
00:34:30,700 --> 00:34:32,380
But then you've got to be a markets move.

471
00:34:33,840 --> 00:34:36,920
And equity markets this year and the last couple of years

472
00:34:36,920 --> 00:34:39,680
have moved way higher than you would have thought.

473
00:34:40,060 --> 00:34:42,960
And that ends up sort of getting you overweight to growth

474
00:34:42,960 --> 00:34:45,240
or underweight to this and things change.

475
00:34:45,500 --> 00:34:48,520
And so you don't want to be so rigorous in hitting

476
00:34:48,520 --> 00:34:52,280
that number that you're missing out on opportunities and you're able to

477
00:34:52,280 --> 00:34:57,480
really function within the market environment that we're in. So there's

478
00:34:57,480 --> 00:35:02,720
there's very wide ranges around these targets. So the green are the targets for

479
00:35:02,720 --> 00:35:07,960
these as it up as it classes. And then there's a big range of around that. And what

480
00:35:07,960 --> 00:35:14,120
you can see is that in these higher growth categories of private equity

481
00:35:14,120 --> 00:35:20,560
realize that as David said you move slowly in those things because when you

482
00:35:20,560 --> 00:35:26,320
make an investment in a private company you don't you not have liquidity and you've

483
00:35:26,320 --> 00:35:31,980
decided today you're gonna fund a biotech startup you're gonna learn in 20

484
00:35:31,980 --> 00:35:36,000
years if it was a good investment or not it takes a long time for these things

485
00:35:36,000 --> 00:35:41,620
to come to fruition so you slowly and carefully you do a ton of due diligence and

486
00:35:41,620 --> 00:35:46,440
you make sure that you're managing the ill-liquid part of the portfolio extremely carefully.

487
00:35:47,360 --> 00:35:53,000
And so when the change was to raise that, you don't just go straight into that, you

488
00:35:53,000 --> 00:35:54,180
build into it.

489
00:35:54,540 --> 00:36:03,980
We expect to get to our targets in these ill-liquid buckets around four, five, maybe six, depending

490
00:36:03,980 --> 00:36:08,160
on how the markets move, it could take us seven years to get right to target.

491
00:36:08,160 --> 00:36:12,200
it, once you're at Target, then you have an active manager, because money's coming back

492
00:36:12,200 --> 00:36:16,240
and money's going in, it's a part.

493
00:36:17,660 --> 00:36:21,700
But in the meantime, you can't put money in the public markets to make sure that you

494
00:36:21,700 --> 00:36:23,040
have enough in your growth assets.

495
00:36:24,020 --> 00:36:30,960
And what has happened since the change in 2023 is the investment office that was internal

496
00:36:30,960 --> 00:36:35,520
to the university, there was some retirement, there was some change, it was outsourced,

497
00:36:35,520 --> 00:36:40,700
We took on the, but in the meantime, there wasn't a whole lot of movement in the portfolio

498
00:36:40,700 --> 00:36:42,200
and cash really built up.

499
00:36:42,580 --> 00:36:47,900
And when you sit on cash in a market that's going up, up, up, you're giving up a lot

500
00:36:47,900 --> 00:36:50,960
of opportunity costs and potential return.

501
00:36:51,660 --> 00:36:59,240
And so we have moved judiciously and cautiously a lot more of that cash that we have inserted

502
00:36:59,240 --> 00:37:06,100
it into the public markets just to make sure that we're getting the growth allocation

503
00:37:06,100 --> 00:37:08,320
that is implied by excessive allocation.

504
00:37:08,900 --> 00:37:14,680
And what will happen over time is we've made more private investments and get ourselves

505
00:37:14,680 --> 00:37:21,740
up to target from 20% to 30% of private equity from 6% to 12% in real assets that will come

506
00:37:21,740 --> 00:37:25,760
out of the public equity bucket and this will come down closer to target.

507
00:37:25,760 --> 00:37:29,860
You can see that in the liquidity part of the portfolio, we're basically a target.

508
00:37:30,080 --> 00:37:35,360
We're a little high on cash, but that's because we're new and we're trying to get ourselves

509
00:37:35,360 --> 00:37:39,840
acquainted with the spending policies and how what the cash flows are really going to

510
00:37:39,840 --> 00:37:40,100
be.

511
00:37:40,780 --> 00:37:45,660
And until we get really comfortable, the policy calls for zero percent cash, we're always

512
00:37:45,660 --> 00:37:46,780
going to carry a little cash.

513
00:37:48,220 --> 00:37:52,660
We're not sure exactly what the right number is yet, because we're still getting our

514
00:37:52,660 --> 00:37:54,900
of bearings with the operations of the university.

515
00:37:55,560 --> 00:37:57,000
So we're carrying a little more cash.

516
00:37:57,440 --> 00:38:02,820
We're about right on fixed income and interest rate

517
00:38:02,820 --> 00:38:05,480
driven fixed income and credit driven fixed income.

518
00:38:06,200 --> 00:38:08,300
And we're a little light on these diversifying strategies

519
00:38:08,300 --> 00:38:12,100
because diversifying strategies, things

520
00:38:12,100 --> 00:38:14,760
that you want to take, you want to still get

521
00:38:14,760 --> 00:38:18,360
that kind of 5% to 8% type return out of these,

522
00:38:18,440 --> 00:38:21,440
but not be so correlated to the swings of the market.

523
00:38:21,440 --> 00:38:23,860
and it's hard to find stuff like that.

524
00:38:24,380 --> 00:38:26,400
So you've got to be really careful

525
00:38:26,400 --> 00:38:29,080
in implementing these and these buckets.

526
00:38:29,660 --> 00:38:31,800
Public equity is easy, you just buy the index fund

527
00:38:31,800 --> 00:38:33,340
and you just let it ride.

528
00:38:33,760 --> 00:38:36,900
And then when you find today in today's environment

529
00:38:36,900 --> 00:38:38,340
where everything is so concentrated

530
00:38:38,720 --> 00:38:41,780
and everything is so AI driven and tech driven,

531
00:38:42,200 --> 00:38:44,400
you get a little nervous about the index

532
00:38:44,940 --> 00:38:47,340
because you're over allocated to about 10 companies.

533
00:38:47,920 --> 00:38:50,860
The emerging markets index which is stocks

534
00:38:50,860 --> 00:38:55,360
outside of the U.S. in developing countries right now is basically three stocks.

535
00:38:56,020 --> 00:39:02,900
Samsung, resources, finance in Korea, and semiconductor manufacturer in Taiwan.

536
00:39:03,520 --> 00:39:08,800
So the market is very concentrated, so we are layering in a lot of what we call active

537
00:39:08,800 --> 00:39:17,300
managers to drive it exposure to good public companies and not be so concentrated in those.

538
00:39:18,180 --> 00:39:25,620
And then this is basically the total portfolio going back 10 years has been compounding

539
00:39:25,620 --> 00:39:26,740
around 8%.

540
00:39:27,360 --> 00:39:32,120
So the good news is we've been keeping up with inflation and keeping the spending.

541
00:39:32,920 --> 00:39:38,380
The bad news is that 8% return means that spending in real terms has been flat for 10 years.

542
00:39:38,980 --> 00:39:43,440
And what we want to do is try to get that closer to what we've been able to achieve over the

543
00:39:43,440 --> 00:39:46,780
last three or four years, we want to be very consistent.

544
00:39:47,340 --> 00:39:52,080
We don't want to have 15% return some years and 5% return some time.

545
00:39:52,240 --> 00:39:57,300
We're trying to build a portfolio that can give us a consistent kind of 9 to 10 to 11%

546
00:39:57,300 --> 00:39:57,660
return.

547
00:39:58,440 --> 00:40:02,680
And so that's the asset allocation and the implementation of the building for.

548
00:40:03,280 --> 00:40:07,860
And then we've broken out a couple of the hedge fund portfolio, the fixed and then the

549
00:40:15,640 --> 00:40:21,280
I think that's the number of slides, unless there's any questions.

550
00:40:22,320 --> 00:40:22,800
Thank you.

551
00:40:23,280 --> 00:40:24,380
Any questions?

552
00:40:25,260 --> 00:40:25,860
Oh, you can.

553
00:40:26,200 --> 00:40:27,640
Thank you, Chair.

554
00:40:28,080 --> 00:40:30,560
Mark, I have two questions I'll ask them in sequence.

555
00:40:31,180 --> 00:40:37,740
The first is do you see anything in the policy statement that you wish were different?

556
00:40:37,740 --> 00:40:43,480
or is this consistent with what you think is the best practice for an endowment the size of ours?

557
00:40:43,980 --> 00:40:46,580
Yeah, I think this is a good asset allocation.

558
00:40:48,580 --> 00:40:57,240
The ranges are very wide and which is great for us because we can play within that.

559
00:40:57,680 --> 00:41:03,760
And like, for example, this diversified this hedge fund strategy bucket, the target is 18%,

560
00:41:03,760 --> 00:41:10,720
which is, it's pretty high, you're going to get out of that bucket, typically in typical

561
00:41:10,720 --> 00:41:17,880
market environments, you're going to get kind of barbed-like returns and like bond plus,

562
00:41:18,280 --> 00:41:21,720
you know, you're trying to outperform bonds and you're not really going to get, you're not going

563
00:41:21,720 --> 00:41:28,680
for equity returns. So 18% is probably a little too high, I think, and I would rather have more

564
00:41:28,680 --> 00:41:37,020
in growth. So, for example, the credit allocation is only 5 percent, but the range is 10. And so,

565
00:41:37,260 --> 00:41:42,520
we're thinking that we'd rather be kind of light on hedge funds, meaning more like 13 percent,

566
00:41:42,980 --> 00:41:48,620
and then a little heavier in credit, because hedge funds in credit are kind of the same thing.

567
00:41:49,340 --> 00:41:55,220
You make credit and invest that you lend money to people, and the best thing happens is they pay you

568
00:41:55,220 --> 00:42:00,700
back, and there's no upside. But if you lend to somebody with a little dicey credit,

569
00:42:00,960 --> 00:42:04,580
you can get a little more yield. So if you lend to the US government, you're going

570
00:42:04,580 --> 00:42:11,220
to get 4%. If you lend to a private company, you can get 9%. So we like private credit because

571
00:42:11,220 --> 00:42:14,780
you can get those higher yields. You have to make sure you're underwriting. You've got

572
00:42:14,780 --> 00:42:19,880
all the risk management around that. But if you can get a kind of a steady, any 9% return

573
00:42:19,880 --> 00:42:25,360
out of a credit portfolio, I think that's much more attractive than hedging strategies,

574
00:42:25,920 --> 00:42:31,200
which sort of ebb and flow and work and don't work and hurt those at heart.

575
00:42:31,420 --> 00:42:37,840
So we probably, you know, the way we're implementing, I think next year I probably come back and see

576
00:42:37,840 --> 00:42:42,220
as you can see we're a little overweight credit, we're still overweight hedge funds.

577
00:42:42,860 --> 00:42:48,080
We actually expect to bring to the board a puzzle to have some modifications

578
00:42:48,080 --> 00:42:49,980
to the existing allocation policy,

579
00:42:50,140 --> 00:42:51,880
there are two primary ones that will target.

580
00:42:52,480 --> 00:42:54,140
One of them will be what Mark has talked about,

581
00:42:54,240 --> 00:42:55,880
which is to reduce the allocation

582
00:42:55,880 --> 00:42:57,440
towards diverse affine strategies,

583
00:42:58,000 --> 00:42:59,840
which I think most people in the market

584
00:42:59,840 --> 00:43:01,820
feel like haven't really delivered on the promise.

585
00:43:02,700 --> 00:43:04,880
And the second is that our allocation policy

586
00:43:04,880 --> 00:43:08,620
literally just says private equity, public equity,

587
00:43:09,040 --> 00:43:11,120
and we expect to bring to you something

588
00:43:11,120 --> 00:43:12,260
that will be a little bit more full,

589
00:43:12,260 --> 00:43:14,120
something that will describe in more detail

590
00:43:14,120 --> 00:43:15,720
what we mean by those things.

591
00:43:15,720 --> 00:43:19,940
So we expect probably within a quarter, a little more granular under that under those

592
00:43:19,940 --> 00:43:20,080
grades.

593
00:43:20,320 --> 00:43:20,580
Thank you.

594
00:43:21,140 --> 00:43:27,580
The second part is just around the withdrawn rate of 5% do we feel comfortable with that

595
00:43:27,580 --> 00:43:33,000
on a lock to our basis, or do we feel like that's a half a percent to high or a percent

596
00:43:33,000 --> 00:43:33,840
to the half to high?

597
00:43:34,940 --> 00:43:39,580
I would argue it's probably a little low, but I think we probably want to get at least

598
00:43:39,580 --> 00:43:43,260
another year under our belt and make sure we feel comfortable with the strategy that's

599
00:43:43,260 --> 00:43:43,600
in place.

600
00:43:43,600 --> 00:43:47,900
It's 4.65% right now, is the withdrawal rate.

601
00:43:48,040 --> 00:43:48,720
You think that's low?

602
00:43:48,980 --> 00:43:52,400
And it's a little worried, but the policy is basically

603
00:43:52,400 --> 00:43:55,620
that rate which is set by the president of the University

604
00:43:55,620 --> 00:43:59,180
applied to an average of the past 12 quarters.

605
00:44:00,320 --> 00:44:04,340
So you can't really change it rapidly and have a big impact

606
00:44:04,340 --> 00:44:06,920
immediately as the endowment grows.

607
00:44:07,620 --> 00:44:09,880
So you're not going to do it on a single year, which is good.

608
00:44:10,120 --> 00:44:12,180
I think you're not going to apply that on a single year

609
00:44:12,180 --> 00:44:14,260
where you have outstanding growth in the endowment,

610
00:44:14,640 --> 00:44:16,040
and take a very big chunk out.

611
00:44:16,440 --> 00:44:18,040
So it's a much more proven way to do it,

612
00:44:18,140 --> 00:44:21,460
but our most institutions that are doing it,

613
00:44:21,700 --> 00:44:24,040
having a long-term, really effective strategy

614
00:44:24,040 --> 00:44:25,480
on their endowments are a little higher than that.

615
00:44:25,720 --> 00:44:27,020
Wow, but that comforts me.

616
00:44:27,220 --> 00:44:28,280
I was worried you were going to say

617
00:44:28,280 --> 00:44:30,620
you thought we were a little too high, so we're fine.

618
00:44:31,080 --> 00:44:31,740
Yeah, we could.

619
00:44:31,840 --> 00:44:35,660
Seven percent, in fact, there are a number of practices,

620
00:44:35,960 --> 00:44:37,640
policies, and even laws that would suggest

621
00:44:37,640 --> 00:44:39,240
when you get towards seven percent,

622
00:44:39,240 --> 00:44:44,300
and you're stretching it, but 4.165 is probably a little low.

623
00:44:44,720 --> 00:44:45,380
Thank you very much.

624
00:44:45,720 --> 00:44:46,500
That's it for me, Chair.

625
00:44:46,800 --> 00:44:47,060
Thank you.

626
00:44:47,300 --> 00:44:47,600
Excuse me.

627
00:44:48,120 --> 00:44:48,900
Anyone else?

628
00:44:50,400 --> 00:44:50,880
Great.

629
00:44:51,080 --> 00:44:51,720
Thank you very much.

630
00:44:51,760 --> 00:44:52,140
Thank you so much.

631
00:44:52,340 --> 00:44:53,040
Appreciate your work.

632
00:44:55,600 --> 00:44:58,380
We'll turn now just to the Chair's report.

633
00:44:58,700 --> 00:44:59,520
It's a...

634
00:45:00,000 --> 00:45:27,740
There's so many exciting wonderful things going on in this university. Fort Douglas Key exchange was last Saturday. And that was a ceremonial closing of the marking of the relocation of our military units and personnel that have been here for so many years at Fort Douglas. And the transfer of the final 50 acres of that active military land to the university for our use. And that is an effort that has I've heard about since childhood.

635
00:45:27,740 --> 00:45:34,220
So, you know, 10 years, but it has been decades in the making.

636
00:45:34,620 --> 00:45:39,260
And so we're enormously grateful to all those who made this possible from our legislators

637
00:45:39,630 --> 00:45:46,020
in both of the state and the federal level and our university presidents, our boards

638
00:45:46,020 --> 00:45:56,540
of trustees that have preceded us, and of course, our wonderful Jason Perry, who knows all

639
00:45:56,540 --> 00:45:56,960
the secrets.

640
00:45:56,960 --> 00:46:00,820
But really, this has been so long in the making, so we're so glad to have that done and we're

641
00:46:00,820 --> 00:46:02,420
enormously grateful to our military.

642
00:46:03,200 --> 00:46:08,020
And we have pledged to honor the legacy of this place as we provide opportunities for

643
00:46:08,020 --> 00:46:10,920
our students here and our community for generations to come.

644
00:46:11,300 --> 00:46:12,840
So very exciting time.

645
00:46:13,960 --> 00:46:19,220
Youth's production's grand opening is tomorrow for anyone who would like to attend, 10 to 1130.

646
00:46:19,920 --> 00:46:25,620
It's the new broadcast center that we've talked about before for both athletics and for communications

647
00:46:25,620 --> 00:46:26,220
departments.

648
00:46:26,220 --> 00:46:31,640
So it will be used by athletics, ESPN, other networks to provide state-of-the-art facilities

649
00:46:31,640 --> 00:46:37,640
as they broadcast wonderful events here at the U. But it also provides a podcast room

650
00:46:37,640 --> 00:46:41,840
and other areas for students to develop their skills and communications, broadcasting

651
00:46:41,840 --> 00:46:42,380
and production.

652
00:46:42,860 --> 00:46:50,200
So it's one of those things that I just love is both got a commercial aspect, it's got a

653
00:46:50,200 --> 00:46:54,080
practical aspect and it touches our students in real ways that I think will be meaningful

654
00:46:54,080 --> 00:46:54,580
to them.

655
00:46:55,640 --> 00:47:01,320
Next week, we have another building dedication for the Spencer Fox Eccles School of Medicine

656
00:47:01,860 --> 00:47:07,860
next Wednesday, which will be in a great addition to our academic and our health sciences

657
00:47:07,860 --> 00:47:08,280
campus.

658
00:47:09,340 --> 00:47:14,680
The academic year, which I can't believe we're talking about, it begins Monday, August 24,

659
00:47:15,020 --> 00:47:18,980
so I don't know if that makes you happy or sad, depending on where you are, your life,

660
00:47:18,980 --> 00:47:25,700
to your family, but we are thrilled to welcome our students back on August 24th.

661
00:47:26,500 --> 00:47:31,140
There's a reminder, honorary degree nominations are open, I think Amy will probably talk a

662
00:47:31,140 --> 00:47:38,080
bit more about that, but please consider nominating individuals for the university's highest honor.

663
00:47:38,900 --> 00:47:43,680
A nominate should demonstrate distinction in professional achievement, public or community

664
00:47:43,680 --> 00:47:49,320
service and or meaningful engagement with the university. You can submit those online,

665
00:47:49,540 --> 00:47:54,500
you can contact Amy who is the chair of the board's honors committee.

666
00:47:57,110 --> 00:47:57,750
President Randall

667
00:47:57,750 --> 00:48:02,510
is engaged in important university work and so it's not here this morning. I would appreciate

668
00:48:02,510 --> 00:48:10,150
you trying to be here to in his set but I'll refer you all to his written report for his

669
00:48:10,150 --> 00:48:15,630
and then I'll turn the time over to Dr. Carter for health sciences.

670
00:48:16,170 --> 00:48:21,210
Thank you, Chair Eccles. Just a couple of updates where we are very excited about next week,

671
00:48:21,210 --> 00:48:24,970
August 19th with the dedication of the new Spencer Fox Eccles School of Medicine.

672
00:48:25,730 --> 00:48:32,790
Just to highlight that space, 185,000 new square feet for this year's entering class to learn

673
00:48:32,790 --> 00:48:38,250
and be exposed to state-of-the-art educational opportunities in the healthcare space.

674
00:48:38,250 --> 00:48:42,430
It also features the Russell M. Nelson Global Health Pavilion, the Dumpkey Collaborative

675
00:48:42,430 --> 00:48:46,430
Experiential Learning Center, and the Accord Medical Education Center.

676
00:48:46,610 --> 00:48:51,030
So on behalf of the Health Sciences, we want to express our thanks, Mr. Spencer Proxeckels

677
00:48:51,030 --> 00:48:56,710
and the Eccles Family and Foundation, for the 110% that they've given to make this possible.

678
00:48:57,850 --> 00:49:03,510
A couple of other highlights just to mention, we have some leadership appointments I just want

679
00:49:03,510 --> 00:49:08,810
to make you aware of Joseph Staleck, a noted cardiologist here at the University of Utah.

680
00:49:09,710 --> 00:49:13,730
Health system has been named the inaugural chief medical officer and executive director of

681
00:49:13,730 --> 00:49:18,290
our solid organ transplant care line. This care line is one of several that's being developed

682
00:49:18,290 --> 00:49:21,770
across the health system to create a more integrated patient-centered experience.

683
00:49:22,310 --> 00:49:27,910
Dr. Staleck, we look forward to his leadership. The vet ready has also been named as our

684
00:49:27,910 --> 00:49:32,650
chief health informatics officer. We find that the intersection between health informatics,

685
00:49:32,650 --> 00:49:38,030
A.I. and patient care delivery is increasingly important and Dr. Reddy's appointment in this

686
00:49:38,030 --> 00:49:39,710
role will help us facilitate that.

687
00:49:40,750 --> 00:49:45,210
I also just want to highlight today our very versatile, rice cycle stadium will be used,

688
00:49:45,410 --> 00:49:50,930
will be announcing in partnership with the X Prize, will be announcing the 10 finalists

689
00:49:50,930 --> 00:49:54,490
in the $101 million X Prize Health Span Initiative.

690
00:49:55,010 --> 00:50:00,890
The reason that's happening here at the University of Utah is the Data Coordinating Center for

691
00:50:00,890 --> 00:50:04,690
the University of Utah has been named as the coordinating center for all of the ex-price

692
00:50:04,690 --> 00:50:10,010
clinical initiatives, and so in partnership with UC San Diego, which is the Biorepository

693
00:50:10,010 --> 00:50:15,510
Center in the University of Utah, those finals will be announced this evening in that competition.

694
00:50:16,730 --> 00:50:21,310
And then last day, I just want to highlight that the school of the dentistry's mobile dental clinic

695
00:50:21,310 --> 00:50:28,150
continues to receive recognition and state funding, and this last year was able to participate

696
00:50:28,750 --> 00:50:32,250
throughout the state and it's been recognized for its service in rural Utah and

697
00:50:32,250 --> 00:50:36,650
work very pleased with the impact of the school of dentistry with this rural

698
00:50:36,650 --> 00:50:42,430
health information program. So that's my report. I'll throw you to the

699
00:50:42,430 --> 00:50:47,390
written report for the rest of the information. Thank you. Appreciate that. I'll turn

700
00:50:47,390 --> 00:50:53,630
the time over to Provost Montoya. Thank you chair Eiffel's and everyone else on the

701
00:50:53,630 --> 00:50:56,650
board. I want to share just a few highlights and then I will refer you to the

702
00:50:56,650 --> 00:50:59,990
a written report, one of which was referenced earlier.

703
00:51:00,390 --> 00:51:03,450
We are expecting yet another record class.

704
00:51:03,850 --> 00:51:07,090
The data won't be finalized until we're at Census State

705
00:51:07,090 --> 00:51:10,410
21 day into the term, but it's looking like

706
00:51:10,410 --> 00:51:13,210
we will have over 8,000 students representing

707
00:51:13,210 --> 00:51:15,770
about a 4% increase over last year

708
00:51:16,060 --> 00:51:18,570
with our most significant growth coming from

709
00:51:19,020 --> 00:51:20,390
residents in state students.

710
00:51:20,470 --> 00:51:22,650
So about an 11% growth in state

711
00:51:23,440 --> 00:51:25,750
and we're flat in other areas

712
00:51:25,750 --> 00:51:29,970
and an area that we along with many others in higher ed are struggling with

713
00:51:29,970 --> 00:51:33,610
is international enrollments. We are down in international enrollment but overall

714
00:51:33,610 --> 00:51:39,410
we're likely going to land the largest class ever again for the sixth year in

715
00:51:39,410 --> 00:51:43,470
a row. We're really excited about a new resource that we're offering for students.

716
00:51:43,610 --> 00:51:47,250
We launched it this summer in orientation and the big roll out of course

717
00:51:47,250 --> 00:51:52,050
happens when all of our students come back. It's called Answer U and this is in

718
00:51:52,050 --> 00:51:58,230
partnership with the Marriott Library and the focus and the effort is to increase students

719
00:51:58,230 --> 00:52:02,710
awareness of and access to resources and so that they can find them in a really convenient

720
00:52:02,710 --> 00:52:03,090
place.

721
00:52:03,470 --> 00:52:08,650
So there will be a physical desk, multiple locations in the Marriott Library, locations

722
00:52:08,650 --> 00:52:13,610
in the union, it's online as well, there's a chat feature and function and what it really

723
00:52:13,610 --> 00:52:17,530
does on the back end is connect the resources but make it really seamless for the students

724
00:52:17,530 --> 00:52:18,550
to find what they need.

725
00:52:18,550 --> 00:52:23,650
So we're very excited about that and academic affairs we launched this summer our compensation

726
00:52:23,650 --> 00:52:30,130
project which focuses on making sure we have competitive salaries for our faculty, so

727
00:52:30,130 --> 00:52:35,650
this is our career line and tenure line faculty and really a very comprehensive and sophisticated

728
00:52:35,650 --> 00:52:42,230
approach to benchmarking and looking at opportunities to make sure that we are treating our faculty

729
00:52:42,230 --> 00:52:45,230
fairly and that we are retaining our excellent faculty.

730
00:52:45,230 --> 00:52:49,630
So I'll share more about that at an academic subcommittee meeting in the future.

731
00:52:50,450 --> 00:52:54,930
One other project that's extremely important across the board is we have been working

732
00:52:54,930 --> 00:53:00,410
for the last three years to adopt scholarship universe, which is an integrated scholarship

733
00:53:00,410 --> 00:53:06,410
platform that allows students to find and easily apply for scholarships rather than having

734
00:53:06,410 --> 00:53:07,150
to hunt them down.

735
00:53:07,150 --> 00:53:16,170
So we have just over 2,230 scholarships in the system right now representing nearly every

736
00:53:16,170 --> 00:53:18,310
institutional scholarship currently available.

737
00:53:18,490 --> 00:53:23,210
This has been a very close partnership with advancement and every single academic unit

738
00:53:23,210 --> 00:53:27,370
and other units that have scholarships and we're extremely excited about what this means

739
00:53:27,370 --> 00:53:31,650
for our students' ability to find scholarships and be supported throughout their academic

740
00:53:31,650 --> 00:53:31,930
journey.

741
00:53:33,030 --> 00:53:36,810
So with that, I'll refer you to the written report and happy to answer questions along

742
00:53:36,810 --> 00:53:37,430
I want Dr. Potter.

743
00:53:38,730 --> 00:53:41,350
Any questions for in the room?

744
00:53:41,610 --> 00:53:42,490
Are you taking my questions?

745
00:53:44,190 --> 00:53:47,730
I'm excited about all that work you're doing that leads

746
00:53:47,730 --> 00:53:50,630
to student success and graduation rates.

747
00:53:50,950 --> 00:53:52,270
Students have that support.

748
00:53:52,470 --> 00:53:53,510
And they know where to find help.

749
00:53:53,730 --> 00:53:55,870
And they are supported in scholarships.

750
00:53:55,870 --> 00:53:57,290
And we make it easy for them.

751
00:53:57,290 --> 00:54:01,070
That is such an important piece of helping them get an education.

752
00:54:01,070 --> 00:54:03,090
And of course, the support of our incredible faculty

753
00:54:03,090 --> 00:54:09,850
making sure that we're able to recruit and retain the best faculty to teach our students and

754
00:54:09,850 --> 00:54:16,390
to push the envelope of discovery and research. So I appreciate all that you're doing there.

755
00:54:16,670 --> 00:54:19,210
Thank you. Love the scholars of the universe.

756
00:54:21,370 --> 00:54:22,610
Thank you. Thank you.

757
00:54:22,770 --> 00:54:27,470
Thank you everybody can hear me, but we can hear you very well. You're great. Thank you so much.

758
00:54:29,170 --> 00:54:34,450
We'll now turn the time to our ASU President, Erica Stringham, to report on behalf of the

759
00:54:34,450 --> 00:54:34,750
students.

760
00:54:35,570 --> 00:54:36,730
Good morning, everyone.

761
00:54:37,050 --> 00:54:41,530
Since we last met in June, ASU has been focused on preparing for the 2026 through

762
00:54:41,530 --> 00:54:46,250
2027 academic year and ensuring our student leaders are ready for the fall semester.

763
00:54:47,330 --> 00:54:51,650
Over the summer, we completed the majority of our hiring and onboarding, expanded several

764
00:54:51,650 --> 00:54:55,670
of our boards and leadership positions, and focused on training and strategic planning.

765
00:54:55,670 --> 00:55:00,350
This has allowed us to bring more students into ASU and strengthen representation across

766
00:55:00,350 --> 00:55:01,410
our campus community.

767
00:55:02,090 --> 00:55:06,070
A major priority for this year is strengthening student engagement and creating more opportunities

768
00:55:06,070 --> 00:55:08,230
for students to build community on campus.

769
00:55:08,830 --> 00:55:13,290
We've continued working closely with President Randall and university partners on new and

770
00:55:13,290 --> 00:55:14,330
expanded programming.

771
00:55:15,170 --> 00:55:19,470
One initiative we're excited to develop is Lawn Fest, a new concert series aimed at bringing

772
00:55:19,470 --> 00:55:21,370
students together through the academic year.

773
00:55:21,370 --> 00:55:25,530
We're also exploring a campus-wide football tailgate experience and other opportunities

774
00:55:25,530 --> 00:55:28,590
to strengthen student involvement and build lasting campus traditions.

775
00:55:29,270 --> 00:55:32,950
We're also continuing to look at ways to strengthen and support for our registered student

776
00:55:32,950 --> 00:55:35,750
organizations and reduce barriers for student involvement.

777
00:55:36,510 --> 00:55:40,650
Our SOs are an important part of how students find community, develop as leaders and create

778
00:55:40,650 --> 00:55:44,650
meaningful experiences on our campus, and we want to continue finding ways to better support

779
00:55:44,650 --> 00:55:45,130
that work.

780
00:55:45,950 --> 00:55:50,350
As we prepare to welcome students back to campus, we've also been working closely with

781
00:55:50,350 --> 00:55:52,630
housing, and orientation, and other campus partners

782
00:55:53,030 --> 00:55:54,830
on welcome week, and move in programming.

783
00:55:55,510 --> 00:55:57,330
Our focus is helping students build connections,

784
00:55:57,670 --> 00:55:59,510
learn about resources, and find opportunities

785
00:55:59,510 --> 00:56:02,010
to get involved early in their experience at the U.

786
00:56:02,870 --> 00:56:05,130
Beyond engagement, we're continuing to focus

787
00:56:05,130 --> 00:56:07,550
on student well-being, access to resources.

788
00:56:08,130 --> 00:56:10,550
Our priorities include mental health, affordability,

789
00:56:10,790 --> 00:56:13,370
food, basic needs, campus safety, transportation,

790
00:56:13,710 --> 00:56:14,610
and sustainability.

791
00:56:16,810 --> 00:56:19,450
Student advocacy will also remain a major priority

792
00:56:20,330 --> 00:56:25,150
We are working to reestablish a permanent student lobbyist committee here at the University

793
00:56:25,150 --> 00:56:30,790
of Utah to strengthen student representation on issues that directly impact our students.

794
00:56:31,330 --> 00:56:35,210
At the same time, I have been working with student body presidents from colleges and universities

795
00:56:35,210 --> 00:56:40,170
across Utah to increase collaboration between our institutions to strengthen the student voice

796
00:56:40,170 --> 00:56:40,830
statewide.

797
00:56:41,350 --> 00:56:46,150
On shared issues such as affordability, tuition, fees, basic needs, mental health, and other policies

798
00:56:46,150 --> 00:56:47,490
that directly impact students.

799
00:56:48,190 --> 00:56:52,470
Finally, I want to acknowledge Joint Resolution 10, which was included in my report.

800
00:56:53,110 --> 00:56:57,310
This resolution was passed by the ASU Senate last spring in support of establishing the

801
00:56:57,310 --> 00:57:00,870
University of Utah as a sanctuary campus and reflects concerns brought forward through

802
00:57:00,870 --> 00:57:02,290
our student legislative process.

803
00:57:02,850 --> 00:57:07,050
We also have a number of students here today in support of this resolution and I want to

804
00:57:07,050 --> 00:57:11,550
thank all of you for being here and for continuing to engage with ASU and university leadership on

805
00:57:11,550 --> 00:57:12,870
issues that matter to you.

806
00:57:13,490 --> 00:57:17,190
As student body president, I have a responsibility to ensure that the voices and perspectives

807
00:57:17,190 --> 00:57:20,110
of our elected student representatives are communicated

808
00:57:20,110 --> 00:57:22,070
to university leadership to the board.

809
00:57:22,950 --> 00:57:26,350
I want to reaffirm the importance of the student concerns represented

810
00:57:26,350 --> 00:57:30,410
in this resolution and encourage us as the board to consider these concerns

811
00:57:30,410 --> 00:57:32,910
as we think about future decisions at our institution.

812
00:57:33,690 --> 00:57:36,810
At the center of this conversation is an important responsibility we all share

813
00:57:36,810 --> 00:57:40,050
ensuring that every student feels safe and supported on this campus,

814
00:57:40,090 --> 00:57:42,650
regardless of documentation or immigration status.

815
00:57:43,370 --> 00:57:45,750
As we continue navigating these issues as an institution,

816
00:57:45,750 --> 00:57:50,350
I hope this resolution can help inform how we approach future decisions and how we continue

817
00:57:50,350 --> 00:57:53,830
to support all members of our campus community thoughtfully and responsibly.

818
00:57:54,110 --> 00:57:58,410
Thank you again to the students here here today in support of ASU and this resolution,

819
00:57:58,610 --> 00:58:02,110
and thank you to the board for continuing to listen and consider the student voice.

820
00:58:04,580 --> 00:58:05,640
Appreciate that update.

821
00:58:05,880 --> 00:58:10,220
The students have that your team is doing and all the hard work you've done over the summer

822
00:58:10,220 --> 00:58:15,060
to prepare for this fall and this next year and this season and bringing forward those

823
00:58:15,060 --> 00:58:20,500
Those items that are top of line for the students, as we begin this year, I'd like to acknowledge

824
00:58:20,500 --> 00:58:25,040
the resolution that was included in your report regarding sanctuary campus designation.

825
00:58:25,680 --> 00:58:30,540
We recognize that this is a very important issue, that it's deeply important to many

826
00:58:30,540 --> 00:58:38,000
members of our community, and as trustees, we care deeply about the success, safety, the

827
00:58:38,000 --> 00:58:40,800
sense of belonging of all of our students at the U.

828
00:58:41,540 --> 00:58:46,220
Many of the issues raised involve state and federal law and the board of higher education

829
00:58:46,220 --> 00:58:49,880
policy that extend beyond this board's delegated authority.

830
00:58:50,780 --> 00:58:56,120
That said, we understand that the University administration has carefully reviewed the

831
00:58:56,120 --> 00:58:56,680
resolution.

832
00:58:57,080 --> 00:59:01,800
It consulted with the U.S. commissioners office for guidance there and met with student

833
00:59:01,800 --> 00:59:04,320
representatives to better understand their concerns.

834
00:59:04,600 --> 00:59:09,440
And we appreciate the work of you and your student leaders and your commitment to improving

835
00:59:09,440 --> 00:59:14,580
the student experience and bringing this forward and I'm happy to see representation.

836
00:59:14,580 --> 00:59:18,500
We appreciate the engagement of our community on issues that matter to them.

837
00:59:18,700 --> 00:59:19,500
So thank you for that.

838
00:59:21,690 --> 00:59:28,350
I'll now turn to Amy to report on behalf of the Alumni Association.

839
00:59:29,130 --> 00:59:29,510
Thank you.

840
00:59:30,490 --> 00:59:35,270
I am just going to highlight a couple things and our full report has been submitted.

841
00:59:36,210 --> 00:59:45,410
We are really excited about the momentum that the U alumni national day of services has had in May.

842
00:59:46,050 --> 00:59:50,970
Members from 12 alumni chapters across the country came together to clean up support and serve their communities.

843
00:59:51,850 --> 00:59:58,110
Collectively volunteers, U alumni contributed more than 175 hours of hands on service.

844
00:59:58,690 --> 00:59:59,650
from Food Bank.

845
01:00:00,000 --> 01:00:27,560
Local nonprofits to the Huntsman Mental Health Center. We are really thrilled at this new tradition. And excited for what's to come and see how, see all the participation as we head to next May. Also upcoming, the swoop sprint. I want to see everybody on the trustees and the swoop sprint. I will acknowledge that some of us sprint and some of us finish.

846
01:00:28,680 --> 01:00:34,420
But it's really fun, and that's going to be on Saturday, September 26th.

847
01:00:34,420 --> 01:00:38,220
Bring your families, bring your dogs. There's a lot of dogs.

848
01:00:38,480 --> 01:00:40,860
And it's really, really a fun day for everyone.

849
01:00:41,480 --> 01:00:43,720
Again, that's Saturday, September 26th.

850
01:00:44,240 --> 01:00:51,060
And then last thing to call out, nominations are now open for Founder's Day 2027.

851
01:00:52,260 --> 01:00:54,420
I just want to encourage everyone.

852
01:00:55,060 --> 01:01:01,720
Everyone here and everyone listening to nominate folks for the Founder's Day Awards.

853
01:01:02,380 --> 01:01:06,200
We want to recognize alumni in this for their Achievement Service and Commitment to the

854
01:01:06,200 --> 01:01:11,680
U. And we are accepting nominations for the next few weeks through September 4th.

855
01:01:12,140 --> 01:01:17,940
People are welcome to reach out to me or go to alumni dot utah dot edu through the rest

856
01:01:17,940 --> 01:01:18,440
of our report.

857
01:01:18,440 --> 01:01:19,060
is in the record.

858
01:01:20,280 --> 01:01:23,380
Hey, Amy, one thing I want to point out, and I want to think

859
01:01:23,380 --> 01:01:26,160
Annalisa and Chris Bosman, I think we're aligning the honorary

860
01:01:26,160 --> 01:01:28,260
degree nominations with Founder's Day.

861
01:01:28,460 --> 01:01:29,900
Yes, thank you for calling that out.

862
01:01:30,220 --> 01:01:32,240
It's a pretty much nominate, nominate, nominate,

863
01:01:32,600 --> 01:01:35,440
and then on the back ends, we'll process that.

864
01:01:36,020 --> 01:01:37,580
The only thing I'd add to that is nominate.

865
01:01:38,400 --> 01:01:38,820
So that's great.

866
01:01:39,040 --> 01:01:39,560
That's a more nominate.

867
01:01:40,780 --> 01:01:42,320
Thank you so much for calling that out.

868
01:01:42,440 --> 01:01:42,540
Yeah.

869
01:01:42,980 --> 01:01:43,380
Wonderful.

870
01:01:44,560 --> 01:01:45,280
Thank you.

871
01:01:45,280 --> 01:01:49,600
So we will now turn the time over to Brent Millen,

872
01:01:50,300 --> 01:01:53,320
the Academic Senate President, report on behalf of the Senate.

873
01:01:54,260 --> 01:01:55,020
Good morning, everyone.

874
01:01:55,280 --> 01:01:56,520
It's a pleasure to be with you today.

875
01:01:57,420 --> 01:02:01,020
I'll refer you to the submitted report that we gave you,

876
01:02:01,060 --> 01:02:02,500
that kind of highlighted some of the work

877
01:02:02,500 --> 01:02:03,840
that we've done over the summer.

878
01:02:04,360 --> 01:02:05,960
Really highlight some of the initiatives

879
01:02:05,960 --> 01:02:08,900
that we've done that demonstrate really close coordination

880
01:02:08,900 --> 01:02:13,300
with both the administration, students, as well as staff.

881
01:02:13,300 --> 01:02:21,080
So a lot of work that went in on some policy changes and we expect more of that over the course of this year.

882
01:02:22,340 --> 01:02:29,100
Also some highlights to the support that we have and that we're providing to big 12 schools,

883
01:02:29,100 --> 01:02:34,160
other schools here in the state of Utah, as well as being closely involved in initiative

884
01:02:34,160 --> 01:02:36,900
from the Board of Education as well as from UCI.

885
01:02:37,080 --> 01:02:39,660
So I'll refer you for the details to that.

886
01:02:39,660 --> 01:02:42,800
That's also just a quick introduction to our new leadership team.

887
01:02:43,380 --> 01:02:47,700
You're familiar with Richard Price, English professor who's now our past president.

888
01:02:48,260 --> 01:02:53,740
Our incoming president, our president elect is John Wynn, a professor of classics, and

889
01:02:53,740 --> 01:02:54,640
then I'm Brett Mellon.

890
01:02:54,840 --> 01:02:59,320
I'm Dennis by training, and I work as the clinic director for the Waukar Clinic and School

891
01:02:59,320 --> 01:02:59,920
of Dentistry.

892
01:03:00,200 --> 01:03:02,360
So, really look forward to working with you all.

893
01:03:02,700 --> 01:03:03,660
Any questions you have?

894
01:03:03,800 --> 01:03:04,560
I'd be happy to answer.

895
01:03:07,540 --> 01:03:08,040
Thank you.

896
01:03:08,240 --> 01:03:08,780
Appreciate it.

897
01:03:10,240 --> 01:03:14,640
And now, Allie Manzdor, president of the staff council report.

898
01:03:17,270 --> 01:03:17,910
Hello, everyone.

899
01:03:18,170 --> 01:03:19,950
Thank you so much for having us here today.

900
01:03:20,630 --> 01:03:23,150
As Cherichel said, my name is Allie Manzdorff.

901
01:03:23,270 --> 01:03:25,870
I am continuing as our staff council president this year.

902
01:03:26,390 --> 01:03:29,130
I'd like to introduce our president-elect, Chris Williams.

903
01:03:30,210 --> 01:03:35,390
Bryce has been a previous staff council president, so we're very excited to have him back with

904
01:03:35,390 --> 01:03:35,830
us.

905
01:03:36,390 --> 01:03:39,970
And in this president-elect role, we did not submit a report

906
01:03:39,970 --> 01:03:44,830
for staff council. We're working with Annalisa to kind of wrap up and finish some projects

907
01:03:44,830 --> 01:03:48,930
before we're pouring this out to you. But we would like to make things aware that we

908
01:03:48,930 --> 01:03:54,430
are changing up staff council's advocacy work. So we did change how the executive committee

909
01:03:54,430 --> 01:04:01,350
meeting is established. So that is a closed meeting. Now for staff council members to really

910
01:04:01,350 --> 01:04:06,870
do that work that we need to get done. We are also altering our by-laws and have restructured

911
01:04:06,870 --> 01:04:12,710
our committees to better focus on staff advocacy but we'll be bringing our full report in September.

912
01:04:13,030 --> 01:04:19,950
Thank you all for having us here. Thank you appreciate that. I'll refer everyone to the information

913
01:04:19,950 --> 01:04:26,510
agenda which is included in the written materials. Primarily about graduate council review and sponsored

914
01:04:26,510 --> 01:04:32,810
projects if you'd like to be informed on those things. Any additional information announcements I think

915
01:04:32,810 --> 01:04:39,870
covered everything and look to my camera here. So thank you all for participating.

916
01:04:40,050 --> 01:04:44,350
I'll remind our trustees. There's our next regular meeting. Our regular open

917
01:04:44,350 --> 01:04:48,650
meeting is October 13th Tuesday. I know there's been some confusion on that. It is

918
01:04:48,650 --> 01:04:55,670
October 13th and we have some subcommittee meetings after this meeting if you

919
01:04:55,670 --> 01:05:02,130
would like to stay around. Let me just hit on that. So yeah so two subcommittee

920
01:05:02,130 --> 01:05:11,470
any meetings. If we have Kate, Katie Kurt, Kathy, Kristina in the Swanson and then the

921
01:05:11,470 --> 01:05:18,030
Sam, Erica, Steve and Karen. Karen will call you. Well, I'll give you a call.

922
01:05:18,290 --> 01:05:24,770
Secretary, go enjoy your birthday in the behind room. That they do these subcommittees.

923
01:05:24,910 --> 01:05:30,050
They should just take a few minutes. So the chair has graciously run a tight meeting.

924
01:05:34,510 --> 01:05:37,470
So we'll call for a motion to adjourn, don't all jump at once.

925
01:05:37,890 --> 01:05:38,810
We'll give it a turn.

926
01:05:38,950 --> 01:05:39,510
Okay, hurt.

927
01:05:40,330 --> 01:05:40,950
There's a second.

928
01:05:41,610 --> 01:05:42,050
I'll check that.

929
01:05:42,250 --> 01:05:42,370
Good.

930
01:05:42,490 --> 01:05:42,870
You greasy.

931
01:05:43,550 --> 01:05:44,570
All in favor.

932
01:05:45,150 --> 01:05:45,390
Hi.

933
01:05:47,550 --> 01:05:48,690
We need to scan the adjourn.

934
01:05:48,750 --> 01:05:49,190
Thank you all.