2 0 1 0 P R E S I D E N T ’ S R E P O R T

In what sometimes seems like ten minutes rather than ten years, the 21st century

is more than a decade old. As it dawned, we were relieved that the Y2K issue had

turned out to be no big deal—but we had no clue what was in store. 9/11 had not

yet occurred, nor the wars in Iraq and Afghanistan. The Indian Ocean tsunami,

the election of President Barack Obama, and the worldwide economic crisis were

years in the future. Yet, in retrospect, it all raced by.

As the pace of events accelerates in our

globalized world, the problems they present

demand ever more agile responses and out-of-

the-box solutions—just what we excel in here

at the University of Miami. One of the nation’s most dynamic, diverse, and

respected research universities, we emphasize multidisciplinary collaborations

that transcend traditional academic boundaries. You might call it educational

entrepreneurship: Of all our specialized programs, perhaps our most distinctive

specialty is the unique way we put them together to address urgent issues.

Message from the President

U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T

2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3

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

collaborative orientation, and commitment to the community

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

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

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

than 20 hours after the devastating January 12 earthquake. UM

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

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

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

and rekindle hope in Haiti.

Joining the effort were nurses from the School of Nursing

and Health Studies and from UHealth and Jackson Health System;

Rosenstiel School of Marine and Atmospheric Science scientists

who contributed expertise in seismologic monitoring and fore-

casting; and UM architects and engineers who studied how

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

programs, Jackson has faced major financial challenges this year.

We are committed to its continued health and viability and are

working closely with Jackson leadership to identify and imple-

ment solutions.

The clinical programs offered by the Miller School of Medi-

cine and University of Miami Health System reflect our commit-

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

partnership with Jackson. For the seventh straight year, Bascom

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

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

annual survey. Three specialties at the University of Miami/

Jackson Memorial Medical Center were also ranked among

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

Throat; and Nephrology and Hypertension.

Harnessing innovative approaches to health and well-being

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

Developed by Wexford Science & Technology, the LSTP is a

collaborative effort among the Miller School, the College of

the University made significant contributions to Haiti’s recovery

and long-term survival.

Coinciding with these varied humanitarian efforts, UM’s

hosting of the third annual Clinton Global Initiative University

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

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

well as nearly 100 university presidents and 74 youth organiza-

tion leaders attended the event, which seeks to engage young

people in making commitments to address critical global issues.

Some 257 UM students were invited to participate, the largest

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

Just two days after CGI U concluded, UM began responding

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

resulting from the April 20 explosion of the BP Deepwater Horizon

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

for Southeastern Tropical Advanced Remote Sensing worked with

international satellite data providers to acquire critical images of

the spill. Rosenstiel School research teams prepared hydrody-

namic models to examine its implications and studied its impact

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

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

cruise during which scientists sampled submerged plumes near

the well site.

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

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

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

hours to community projects each year. Our varied outreach

activities are showcased in a recently launched section of the

University’s website called ’Canes in the Community.

A community issue in which we are all stakeholders—health

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

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

care, combining evidence-based treatments with an emphasis

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

our medical enterprise’s key partners has been Jackson Memorial

Hospital. Home to many of our premier clinical and educational

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

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

nationwide, and the Department of Psychology was ranked 60th

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

a strong background in education and administration, assumed

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

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

tory of excellence while spearheading creative collaborations to

address global problems and prepare world-ready citizens.

The lingering economic downturn continues to pose fiscal

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

cising vigilance over our revenue and expenses to protect our

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

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

smallest rate increase in recent history, and clinical revenues

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

that we have managed our finances in ways that have allowed

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

that facing and meeting these economic challenges will ultimately

make us stronger.

Because they will strengthen us in the long term, we are

moving ahead with selected infrastructure projects. The newest

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

and Judi Prokop Newman Alumni Center, a spacious and inviting

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

this fall. Improvements and expansions under way on the Gables

campus also include the Cox Science Building Interdisciplinary

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

interdisciplinary research and biological imaging largely funded

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

Herbert Wellness Center, which will help this popular resource

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

School campus, plans are moving forward on a major new

integrated seawater laboratory facility that will include the state-

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

for studying the effects of storms on built environments and a

Marine Life Science Center.

The steadfast loyalty and support of our friends during

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

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

from last year. Among many examples of outstanding generosity,

the Goizueta Foundation donated $2.4 million to the University

of Miami to support a comprehensive University-wide plan that

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

Library’s Cuban Heritage Collection.

The Barton G. Kids Hear Now Foundation announced a

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

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

rehensive Cancer Center, recently announced a $3.2 million

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

Pad, our resource dedi-cated to fostering entrepreneurship

and innovation, garnered major gifts from both the Kaufmann

Foundation and the Blackstone Charitable Foundation. Overall,

new commitments of $100,000 and up reached nearly

4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 5

Engineering, and community and private partners. It will house

cutting-edge basic and translational research while nurturing ben-

eficial new technologies and processes. The park also represents

significant opportunities for the historic Overtown community in

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

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

innovation in South Florida and beyond.

UM’s scientific leadership was advanced this year by our

successful efforts to secure federal research funds made available

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

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

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

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

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

among all research universities. The funds contributed to a grand

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

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

Our distinguished scholars and educators, array of educa-

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

plished and successful student body have all contributed to the

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

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

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

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

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

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

Prices” category.

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

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

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

physical therapy program, consistently named among the nation’s

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

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

year, consistently ranks among the top ten. Further laurels

came from Parade magazine, which recently included UM in its

“College A-List” of outstanding schools.

$138 million, up more than 56 percent from last year.

Our steady stewardship of philanthropic funds is widely

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

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

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

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

I am certain that few academic institutions could have

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

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

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

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

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

continue to meet its challenges and maximize its opportunities in

often surprising, consistently inspired, and endlessly inspiring ways.

Donna E. Shalala

President

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

and Technology Enhancement

(CREATE), an NIH-funded multi-site

center coordinated at the University

of Miami. CREATE seeks to improve

the interface between elders and

information technology so that they

can increase their access to services,

maintain closer touch with family

and friends, and stay independent

longer. As principal investigator of

CREATE, Czaja recently received

renewed funding of $9 million over

five years from the National Institute

on Aging.

“Our research focuses on tasks

and technologies that people use

S U P E R C H A R G I N G S C I E N T I F I C I N Q U I R I E S

Capable of performing trillions of

calculations per second, power-

ful computers are allowing teams

of University of Miami scientists to

perform the next-generation genome

sequencing that will identify disease

genes and unravel the mysteries

behind illnesses such as diabetes,

cancer, and Alzheimer’s.

“We now have the compu-

tational resources that make it

possible,” says Nick Tsinoremas,

director of UM’s Center for Computa-

tional Science (CCS), which harnesses

computer power, applied math-

ematics, and application sciences to

address some of the world’s most

difficult challenges, from improv-

ing human health and monitoring

climate change to finding alternative

energy sources. In less than four

years, CCS has established more than

100 active collaborations, working

with researchers University-wide in

biology, chemistry, earth sciences,

engineering, medicine, physics, and

other disciplines.

One of the biggest and most

important CCS collaborations is with

scientists from UM’s John P. Hussman

Institute for Human Genomics. The

center’s 6,000 central processing

units, or CPUs, contain the necessary

computing power to analyze massive

on a daily basis, such as health care

websites, telehealth technologies, or

the Internet for activities like bank-

ing, shopping, or finding information

about community resources,” Czaja

explains. She and other UM research-

ers then develop interventions and

educational programs that can help

seniors use these technologies.

Clearly there’s a need for such

efforts. A study by Czaja and col-

league Joseph Sharit, a professor

of industrial engineering, found

that elderly people who used Medi-

care’s website found it “confusing

and overly complex.” She hopes to

convince Medicare to make the site

easier for older individuals to use.

As the study concluded, “To ensure

that electronic health tools reach

their full potential, broad and inclu-

sive input from consumers should

serve as the basis for design.”

amounts of genomic data, helping

Hussman Institute researchers unlock

the mysteries of human disease.

The CCS played a critical role in

helping to mitigate the catastrophic

Gulf oil spill, providing computational

resources to UM’s Rosenstiel School

of Marine and Atmospheric Science,

whose researchers conducted

As director and principal investiga-

tor of the Center on Research and

Education for Aging and Technology

Enhancement (CREATE), Sara Czaja

leads efforts to improve the interface

between elders and information tech-

nology to promote independence and

quality of life among older people.

These images from a Rosenstiel School

simulation of the Gulf oil spill, created

with a Center for Computational Science

supercomputer, show a buoyant plume

of crude oil and natural gas interacting

with surface currents.

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

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

Information and communication

technologies such as the Internet,

e-mail, and mobile phones are not

just the domain of the young. Accord-

ing to Sara Czaja, a UM professor

with joint appointments in the Miller

School of Medicine’s Department of

Psychiatry and Behavioral Sciences

and the College of Engineering,

“Seniors are anxious to participate in

the technology explosion. But they’re

looking for specific things that are

not too complicated in design.’’

Czaja is director and principal

investigator of the Center on

Research and Education for Aging

The use of powerful supercomputers to protect both

human health and the natural environment, ingenious

strategies to treat diabetes, new ways to help the

elderly cope with an increasingly high-tech society:

UM investigators are partnering across disciplines

to address some of the world’s toughest challenges.

6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 7

I N T E R D I S C I P L I N A R Y A D V O C A T E

Although he’s just entered medical school, Kartik Telukuntla has already racked up an impres-

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

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

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

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

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

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

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

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

about what I want to accomplish.”

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

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

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

program with honors.

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

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

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

C A M O U F L A G I N G A C U R E

Improving outcomes for diabetic

patients who receive islet cell trans-

plants to achieve insulin indepen-

dence is the goal of biomedical

engineer Cherie Stabler’s research.

The cells, which are harvested from

the pancreas of a donor and trans-

planted into a patient with diabetes,

come under attack from the recipi-

ent’s immune system, necessitating

the need to give patients powerful

immunosuppressant drugs that leave

them open to infections.

Stabler’s strategy for overcom-

ing this is to coat the transplanted

islet cells with biomaterials, cam-

ouflaging them from the body’s im-

mune system. Now, she is augment-

ing her method with a new strategy:

creating biomaterial scaffolds that

will house islets in three-dimensional

space, ensuring that they get the

nutrients they need to survive.

“I like to say that islet cells are

like super-athletes,” says Stabler, an

assistant professor of biomedical en-

gineering and director of the tissue

engineering program at the Diabetes

Research Institute. “They have a high

nutrient demand.”

When transplanted just under

the skin, the cells tend to cluster,

competing with each other for nour-

ishment. “The islets on the outside

get all the nutrients, and those on

the inside begin to die,” Stabler

explains. So the scaffolds she and her

team are developing will distribute

the islets more evenly, providing

mechanical protection in a nutrient-

rich environment. The scaffolds that

house the islets look and act a lot

like kitchen sponges, absorbing the

right amount of fluids, or nutrients,

while maintaining their stability.

Stabler also has taken her scaf-

folding strategy even further, working

computer simulations and hydrody-

namic modeling to determine the

path and potential impact of the oil.

The NIH-funded bioassay ontol-

ogy project of Miller School of Medi-

cine’s researchers Vance Lemmon and

Stephan Schuerer is moving forward

with computational support from

CCS. The project seeks to describe

the hundreds of different assays used

to study how perturbing agents such

as drugs alter cell function, enabling

scientists to more effectively identify

and prioritize chemicals for further

development into chemical probes

or starting points for therapeutics.

Other CCS collaborations

include continued computational

support for the climate change

research of Ben Kirtman, a

professor of meteorology

and physical oceanography

who directs the center’s

program in physical sci-

ences and engineering;

the Translational Research

Information Exchange, a

collaborative project with

the Miller School; and ongo-

ing work with the Rosenstiel

School’s Cooperative Institute for

Marine and Atmospheric Studies

to define cyber-infrastructure for

all of its projects.

Miller School of Medicine professor

Vance Lemmon is involved in studies

that include a Miami Project to Cure

Paralysis-funded search for genes that

can help neurons regenerate and a bio-

assay ontology project that examines

how agents such as drugs alter cell

function. Technical support from the

Center for Computational Science, he

says, allows his teams to do work of

“unprecedented sophistication.”

In pursuit of biomaterials that will

protect transplanted islet cells from

immune system rejection while allow-

ing them vital nourishment, biomedi-

cal engineer Cherie Stabler takes a

multidisciplinary approach. “When

you start putting all these minds

together,” she says, “is when you

come up with something novel.”

with researcher Norma Sue Kenyon,

the Martin Kleiman Professor of Sur-

gery, Medicine, Microbiology and Im-

munology, and Biomedical Engineering

and co-director of the DRI’s Executive

Research Council, to grow mesenchy-

mal stem cells on the surface of the

biomaterial that coats the islets.

“Mesenchymal stem cells seem

to be able to modulate the immune

system in a good way,” Stabler ex-

plains. “We’ve found that these cells

grow very well on our biomaterial

scaffolding, creating a three-dimen-

sional protective ‘bubble’ that may

help minimize immune rejection of

the islets.”

Stabler notes that, through

her collaboration with Kenyon, she

and her team have been able to get

diabetic animals off insulin using this

technique: “Our ultimate goal is to

move this technology to clinical trials.”

8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 9

P R O P E L L I N G P R O T E O M I C S

With a $2.6 million NIH stimulus

grant, Akira Chiba hopes to begin

doing for proteomics—the study

of proteins—what sequencing the

human genome did for genomics.

Chiba, a professor in the Department

of Biology, and his colleagues have

designed a powerful new tool to help

make it possible: a photon-based

fluorescence microscope designed

specifically to visualize the interac-

tions of living proteins.

The highly specialized new

equipment makes it possible to view

such interactions within the cells of

living animals much faster and in

far greater detail than ever

before. The advance opens the door

to the new science of ‘isPIN’ (in situ

studies of protein-protein interac-

tion networks). Chiba and his team

have shown that the approach works;

the two-year NIH award will support

work to demonstrate the technique’s

expandability.

Chiba’s lab is currently creat-

ing the first map of protein-protein

interaction networks in the brain;

UM’s Center for Computational Sci-

ence is set to provide memory space

and assist in data analysis. The isPIN

project, says Chiba, is “sure to shed

new light on the dynamics of the

molecules of life.”

E N H A N C I N G A I D S P R E V E N T I O N

After someone tests positive for HIV,

counseling is typically offered as

both a first step to initiate medical

care and as a strategy to reduce the

patient’s risky behavior. But whether

counseling can help those who test

negative for the virus remains an

open question.

Lisa Metsch, a Miller School of

Medicine professor of epidemiol-

ogy and public health who studies

HIV prevention, has embarked on a

two-year stimulus-backed study to

find the answer. Her $12.3 million

grant, shared with the San Francisco

Department of Health, is examining

the effectiveness of HIV prevention

counseling at nine clinics around

the country.

“We need to recognize that

most people will not have an HIV-

positive test,” says Metsch. “For the

people who get a negative test, is

there value in also doing counseling?

That’s why this study is needed.”

Akira Chiba, a professor

of development and neurosci-

ence, uses a sophisticated

photon-based microscope to study

proteins as they bind and signal to

each other within the intact brains of

fruit flies. He and his colleagues hope

to create a map of protein interactions

that could guide the way to as-yet-

unimagined medical interventions.

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

Trapping harmful gases in a bottle,

then putting it away so they won’t

poison the air, might sound like a

simplistic approach to fighting pol-

lution. But that’s exactly the premise

behind carbon sequestration—a

means of capturing carbon dioxide

from sources such as fossil fuel

power plants, converting it to a

liquid, and storing it underground.

The gas is thus, in theory, kept out

of the atmosphere so that it won’t

contribute to global warming.

“We’re not really sure exactly

what happens to carbon dioxide when

it gets pumped in the ground,” says

Peter Swart, professor and chair of

marine geology and geophysics at

the Rosenstiel School of Marine and

Atmospheric Science. The U.S. govern-

ment has given Swart and his colleagues

$2 million—including $300,000 in

stimulus funding—to find out.

Swart is training a group of

doctoral students to determine

whether carbon dioxide is leaking

from the ground or staying put at

Department of Energy sites around

the country. His project teammates

include fellow Rosenstiel School

scientists Tim Dixon, Falk Amelung,

Guoqing Lin, and Dan Riemer.

A study integrating so many

different technologies, from seismom-

eters to synthetic aperture radar, to

gauge the effectiveness of carbon

capture has never been done before:

“This is new territory,” Swart says.

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

test a device used for monitoring carbon dioxide levels above underground

storage sites. This scanning electron microgram

shows the beginning of a synapse in

a fruit fly. A human brain is believed

to have more than a trillion synapses,

dynamically created and eliminated

throughout life.

Garnering nearly $93 million in federal “stimulus”

funds granted via the American Recovery and

Reinvestment Act (ARRA), University of Miami

investigators have embarked on more than 100

research projects. Like the examples profiled here,

many seek solutions to some of the world’s most

urgent medical and environmental issues.

1 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 1

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

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

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

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

bass trombonist in one of its three jazz bands.

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

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

biology, marine science, and music.

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

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

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

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

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

she receive credit in an upcoming scientific publication of Hurt’s, Silliman says her mentor has

encouraged her to start her own research project.

Active in tae kwon do, scuba club, and the marine studies honor society Rho Rho Rho,

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

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

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

I M A G I N G T H E N E R V O U S S Y S T E MM E N D I N G B O D Y T I S S U E S

University of Miami biomedical

engineer Weiyong Gu is working

long hours in his lab to build an

instrument that could help pave the

way for advanced techniques in the

engineering of human tissue.

The bioreactor on which Gu

and colleague Charles Huang, an

assistant professor of biomedical

engineering, are working could make

it possible to monitor the electrical,

chemical, and mechanical charac-

teristics of engineered tissue and

predict its growth and other traits

without having to remove it from the

device—something that can’t be done

with current bioreactors.

The two College of Engineer-

ing researchers, their work funded

by an ARRA grant of $735,000 from

the National Institute of Biomedical

Imaging and Bioengineering, hope to

have a prototype of the instrument

ready and tested within two years.

“Imagine using engineered tissue

to replace diseased or damaged or-

gans,” Gu says. “That’s the potential

of this work.”

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

Hurricanes are the costliest natu-

ral disasters that strike the United

States—and as more and more

Americans gravitate toward the

coasts, their negative impacts will

only rise. A $15 million ARRA grant

from the National Institute of Stan-

dards and Technology (NIST) of the

U.S. Department of Commerce sup-

ports construction of the Rosenstiel

School’s 8,520-square-foot, state-of-

the-art Surge-Structure-Atmosphere

Interaction (SUSTAIN) laboratory.

The only facility in the world

with a wind-wave-storm surge simu-

lator that can generate hurricane-

force winds in a 3-D test environment,

SUSTAIN will offer the capability to

model entire segments of coastal

communities, so engineers can study

changes in the way buildings are

designed and constructed.

Slated to be completed in 2012,

SUSTAIN is part of an integrated

seawater laboratory building that will

house a state-of-the-art Marine Life

Science Center. The center, which will

focus on coral reef research, will also

be home to fisheries and biologi-

cal oceanography research, as well

as collaborative studies probing the

complex connections between the

oceans and human health.

Says SUSTAIN principal investiga-

tor Brian Haus, associate professor of

applied marine physics and director

of UM’s Air-Sea Interaction Saltwater

Facility, “This building will help us

better understand and protect our

coastal communities and ecosystems.”

$14.8 million in ARRA funds, is de-

signed to build on these advances.

Within this state-of-the-art,

37,700-square-foot addition to the

Cox Science Center, scientists from

the College of Arts and Sciences and

Miller School of Medicine will con-

duct interdisciplinary studies based

on neurological imaging and health

research, accelerating the pace of

discovery in neurological processes

and related diseases.

The wind-wave-storm surge stimula-

tor, a component of the Rosenstiel

School’s new SUSTAIN facility, gener-

ates hurricane-force winds in a 3-D

test environment.

The Rosenstiel School’s Brian Haus,

principal investigator of the SUSTAIN

laboratory initiative, notes that

“developing a more complete under-

standing of our environment and its

weather, as well as their effects on

structures, ecosystems, and human

health, is essential.”

Featuring revolutionary technologies allowing scientists to connect nerve cell

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

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

processes and related diseases.

1 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 3

One of the challenges to understand-

ing human emotions, cognition, and

neurological disorders is linking

changes in brain cell function to

changes in subjective experiences

and observable behaviors. The ability

to track nerve cell activity and make

real-time connections to human

behavior is revolutionizing the

way scientists and physicians study

the brain. UM’s new Neuroscience

and Health Annex, which received

D I S C I P L I N E D D E V E L O P M E N T

Real estate is big business in South

Florida, so it make sense that the

University of Miami lead the way in

preparing students for success in

this dynamic industry. The School

of Architecture is doing its part by

launching an interdisciplinary Master

of Real Estate Development and

Urbanism (MRED+U) program.

The MRED+U combines its

world-class curriculum and expertise

in livable community planning with

strengths of real estate programs in

the School of Business Administra-

tion and School of Law. As cities are

increasingly taxed by traffic, water

scarcity, rising energy prices, and a

paralyzing credit crisis, this multidis-

ciplinary program provides a holistic

approach to modern challenges.

Students learn cutting-edge

practices in real estate finance,

market analysis, real estate law,

land use policies, project manage-

ment, public-private partnerships,

the development process, sustain-

able development practices, and

entrepreneurship. Graduate students

and faculty in real estate, business,

law, architecture, and urban design

collaborate on case studies, team

projects, competitions, and capstone

charrettes—combined development

and community design studios.

These charrettes challenge students

to balance the desires of the market,

residents, government leaders,

community stakeholders, and

financial interests while devising

a development plan.

Students in the MRED+U

program bring diverse academic

backgrounds and work experience,

enriching the interdisciplinary learn-

P U R S U I N G C A N C E R ’ S S E C R E T S

ogy at the Miller School of Medicine.

Burnstein oversees a curriculum that

strives to integrate students into the

extensive clinical and translational

research programs of the Sylvester

Comprehensive Cancer Center while

reinforcing the interrelationships

of basic biological discoveries and

clinical applications.

“The program’s two-tiered

mentoring system provides graduate

students with unique and valuable

training,” says Burnstein. “This dual

mentoring has the added benefit of

increasing interactions among

faculty scientists and clinicians,

which is a strong impetus

for University-wide transla-

tional research efforts.”

Cancer remains a highly complex,

elusive disease that demands the

most novel diagnostic and treatment

approaches. The Sylvester Compre-

hensive Cancer Center’s Sheila and

David Fuente Graduate Program

in Cancer Biology teaches the next

generation of cancer researchers to

integrate the most advanced con-

cepts and techniques in molecular

and cell biology, biochemistry, genet-

ics, genomics, proteomics, animal

models, and biostatistics in the quest

for more accurate diagnostic strate-

gies and improved therapeutics.

This innovative doctoral train-

ing program enables students to

interface with basic scientists, clinical

cancer researchers, and physicians

throughout the University as they

design and conduct multidisciplinary

research projects. Students select

both a research mentor to guide

them in basic science and trans-

lational investigation as well as a

physician mentor who exposes them

to the challenges of clinical cancer

care and unmet research needs.

The program is directed by

Kerry Burnstein, a professor of

molecular and cellular pharmacol-

ing environment. The program has

drawn applications from throughout

the United States (including Hawaii),

South America, and the Caribbean

as well as India, Saudi Arabia, South

Korea, and China.

Such widespread interest is

natural, says MRED+U program

director Charles Bohl, considering

the dramatic social, economic, and

demographic trends that are shifting

the industry toward a new paradigm

combining livable community design

and sustainable urban development.

The MRED+U program, he notes, “is

perfectly poised to prepare the next

generation of entrepreneurs to make

those communities a reality.”

Kerry Burnstein, a professor

of molecular and cellular phar-

macology, leads the Sheila and

David Fuente Graduate Program in

Cancer Biology at Sylvester Compre-

hensive Cancer Center. The program

enables doctoral students to interface

with scientists, researchers, and physi-

cians in multidisciplinary projects that

span basic and translational research.

The School of Architecture’s MRED+U

Program, led by professor Charles

Bohl, provides students with a

multidisciplinary perspective on

developing the built environment

to optimize both economic outcomes

and human well-being.

1 4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 5

Contemporary issues don’t fit neatly into academic

disciplines; neither do effective solutions. UM is

responding with a growing array of multidisciplinary

programs that prepare students for real-world

leadership in fields ranging from the built

environment to cancer biology.

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

Staying afloat in today’s music busi-

ness requires finding creative ways to

ride the digital wave that ushered in

the age of online downloading. The

Frost School of Music’s Music Business

and Entertainment Industries (MBEI)

program, led by associate professor

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

of the few programs designed specifi-

cally to prepare students for the pub-

lishing, protection, and administration

of intellectual property in this rapidly

changing industry.

This year the MBEI program

teamed with the UM School of Law

to design the first-ever joint-degree

program in law and music business,

a unique opportunity for aspiring en-

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

in Music Business and Entertainment

Industries welcomed its first students

in fall 2010, offering them the ability

to complete both degrees in three

years, including two summers of

coursework. Graduates are prepared

to offer legal services in arts and

entertainment, as well as in more

general fields such as antitrust, busi-

ness associations, commercial law,

intellectual property, tax, and torts.

The program was spearheaded

by Serona Elton, M.M. ’95, who as a

student cofounded ’Cane Records,

one of the first self-sustaining col-

lege record companies. Elton went

on to earn a J.D. from Brooklyn Law

School and served as vice president

of mechanical licensing and reper-

toire data services at EMI Recorded

Music before returning to UM as a

faculty member. She is a consultant

for Sony Music Entertainment and

several other music industry clients,

a specialization that enables her to

provide conceptual and practical

insight to the program.

“If you’re going to be work-

ing with contractual arrangements,

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

Music Business and Entertainment

Industries, the nation’s first-ever joint-

degree program in law and music busi-

ness. “So much of the music industry

is based on contractual relationships,”

she says. “Understanding those

nuances is key to negotiating and

crafting deals.”

either negotiating them or draft-

ing them, being a lawyer helps you

understand the nuances and legal

ramifications of particular contract

language,” Elton says. “Our gradu-

ates will be well prepared to enter

this rapidly changing field.”

Associate professor Rey Sanchez, chair

of the Department of Music Media and

Industry at the Frost School, helped

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

‘ C L A S ’ A C T

Home to both undergraduate and

master’s degree programs in Latin

American Studies, the Center for

Latin American Studies (CLAS) also

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

honors degree. Just as crucial as

its degree programs are varied

interdisciplinary activities that link

faculty in the College of Arts and

Sciences with those from schools

including Architecture, Communica-

tion, and Marine and Atmospheric

Science. Also in the mix are visitors

from Latin America and other parts

of the world who participate in guest

lectures, workshops, visiting scholar-

ships, and studies. In August 2010,

noted scholar Ariel C. Armony took

over leadership of the center from

longtime director Steven Stein.

Last spring the center’s lively

calendar of events included a confer-

ence uniting living playwrights from

1960s Cuba, which was video-

streamed live; a screening of Which

Way Home, a documentary about

unaccompanied immigrant children

in South Florida; presentations on

spiritual tourism in Peru and the

Argentine wine industry; and discus-

sions of social issues and logisti-

cal challenges in post-earthquake

Haiti. Through the center’s summer

grant program, graduate students

conduct on-site research into topics

of interest ranging from 19th-century

Afro-Cuban politics to the evolution

of Colombian saxophone music.

More ambitious initiatives are

in the works with the creation of the

Miami Consortium for Latin Ameri-

can and Caribbean Studies. The new

collaboration between CLAS and the

Latin American and Caribbean Center

(LACC) at Florida International Uni-

versity has been designated a Title VI

National Resource Center (NRC) for

Latin America by the U.S. Depart-

ment of Education.

1 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 7

“Protagonistas de los 60,” a March

2010 conference cohosted by the

Center for Latin American Studies

and FIU’s Cuban Research Institute,

brought together noted Cuban play-

wrights for the first time in more than

40 years to explore a unique decade

in Cuban theater.

E C L E C T I C A C H I E V E M E N T S

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

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

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

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

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

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

bers to discuss a nonfiction work of personal significance.

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

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

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

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

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

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

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

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

participates on the Model UN traveling team.

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

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

M E D I C A L M I R A C L E S

The first wave of doctors landed at

Port-au-Prince’s ruined airport the

day after the earthquake with garbage

bags full of sutures, antibiotics, and

wound dressings—whatever they could

grab before their flight. Nothing could

prepare them for the chaos and heart-

break they encountered.

As co-founder of the humanitar-

ian effort Project Medishare, Barth

Green, professor and chair of the

Miller School of Medicine’s Depart-

ment of Neurological Surgery, had

been helping to bring health care to

the people of Haiti since 1994. He

and his colleagues, including several

members of the UM Global Institute

for Community Health and Develop-

ment, were quickly at the forefront

of the global medical response to the

ravaged country, treating thousands of

severely injured survivors.

The Miller School’s multifaceted

efforts on behalf of Haiti also ranged

from the nearly instant creation of

a Miami-based command center

that moved mountains to transport

people and equipment to a nation in

complete meltdown to a ham radio

station that made it possible to relay

lifesaving information about supplies

and patients when more modern

communications media were no

longer functioning.

With extraordinary logistical

assistance from prominent com-

The Miller School’s Barth Green, a

leader of efforts to improve health

care in Haiti for more than 16 years,

was in Haiti the day after the Janu-

ary 12 earthquake, spearheading the

coordination and delivery of urgently

needed medical services for thousands

of grievously wounded survivors.

munity members who included

longtime Miller School supporters

and University trustees, as well as

generous philanthropic support that

reached nearly $7 million, the school

also spearheaded an astounding

feat, building a well-equipped,

air-conditioned, 240-bed hospital

housed in four tents in just over a

week after the quake. Some 1,500

medical personnel from the UM

community and beyond—nearly every

U.S. state and several countries—

ultimately volunteered for shifts at

the hospital. Plans are under way to

transform Haiti’s health care system

and to create a national trauma sys-

tem, made possible in large part by

the efforts of Project Medishare and

the UM Global Institute.

Miller School of Medicine teams built

the well-equipped, 25,000-square-

foot, 240-bed University of Miami

Hospital in Haiti in just over a week.

UM law students, joined by students

from leading law schools around the

U.S., helped Haitians living in South

Florida to file for Temporary Protected

Status in an effort that garnered

national recognition.

L E G A L L I F E L I N E

Just ten days after the devastating

earthquake in Haiti, UM law students

were helping Haitians living in

South Florida to file for Temporary

Protected Status (TPS), which allows

them to live and work legally in the

U.S. In March, 52 law students from

eight universities across the nation,

including Yale and Stanford, came to

Miami for alternative spring breaks

to pitch in.

“I see this as an opportunity to

make sure people don’t become mar-

ginalized,” says Nneka Utti, 23, who

participated in the TPS effort.

TPS gives foreign nationals who

can’t safely return to their home-

lands because of armed conflict,

natural disaster, or other life-

threatening conditions 18 months

of amnesty to live and work in the

United States.

Associate professor JoNel

Newman, who directs the Health

and Elder Law Clinic, knew that

many in Miami’s large Haitian com-

munity would need help completing

the complicated TPS application and

coming up with the $470 processing

fee and other affiliated costs in time

for the filing deadline. “The Haitian

TPS Project provides a valuable

service because it enables those who

are here the opportunity to work

and send money back to Haiti,”

Newman says.

The school’s TPS activities

spawned a comprehensive training

and processing model that may be

deployed at any legal service institu-

tion or law school clinic. They also gar-

nered national recognition, including

the prestigious Clinical Legal Education

Association’s Award for Excellence in a

Public Interest Case or Project.

“We know now what we sus-

pected before we started this effort,”

Newman says. “TPS does help Haiti.

Lawyers can help Haiti. We can be

first responders in a way.”

Within a day of the devastating January 12 earthquake

in Haiti, Miller School of Medicine teams began

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

injured survivors. In the months since, UM faculty,

staff, students, and alumni have continued to provide

a diverse array of urgently needed services to help

Haiti recover and rebuild.

1 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 1 9

Just days before a group of

nations pledged an estimated

$5.2 billion toward Haiti’s recovery

during a donors conference in New

York, the charrette’s 12 design teams

presented ideas ranging from build-

ing civic spaces such as churches,

clinics, and community centers to

restoring Port-au-Prince’s historic

district. After soliciting feedback

about the proposals from residents

throughout Haiti, government

officials will return to UM with

potential projects needing design.

L A V I D A I N T E R N A T I O N A L

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

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

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

French and Creole.

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

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

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

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

and earned three prestigious prizes, including a Fulbright Award.

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

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

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

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

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

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

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

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

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

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

The School of Education’s Guerda

Nicolas, a native of Haiti who lost

family members in the January earth-

quake, helped to coordinate disaster-

related mental health assessments,

trainings, and counseling services in

Haiti and in Miami’s Haitian com-

munity. The nation’s deep cultural

traditions, she has written, allow it to

“flourish in the midst of the storms.”

Rosenstiel School professor Tim Dixon

spearheaded efforts to analyze seismic

data from the January quake to help

identify safer locations for rebuilding

critical components of Haiti’s

infrastructure.

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

A team of University of Miami geolo-

gists says there’s a high probability

for another destructive tremblor in

Haiti’s not-too-distant future. Using

optical data and satellite imagery,

the geologists discovered a buildup

of seismologic stress beneath the

island’s surface that could trigger

another quake.

Tim Dixon, a professor of

marine geology and geophysics at

the Rosenstiel School of Marine and

Atmospheric Science, has urged

the Haitian government to rebuild

critical parts of its infrastructure

away from the danger zone. Partici-

pating in efforts to find feasible sites

is Dixon’s colleague Falk Amelung,

the task leader of a GEO (Group on

Earth Observations) Supersite that

provides scientists with satellite

data about seismic measurements

in Haiti.

At a collaborative charette that

UM hosted in March at the request of

Haiti’s Commission on Planning and

Reconstruction, attendees sketched

the outlines of roads, houses, hospi-

tals, and schools, partnering with UM

faculty and students on a recovery

plan for their nation. “There’s an

urgency in what’s being done here,”

explained School of Architecture

Dean Elizabeth Plater-Zyberk.

T R A N S C E N D I N G T U R M O I L

Haitian-born anthropology profes-

sor Louis Herns Marcelin was in

Haiti with students such as Kristina

Rosales (see profile on facing page)

when the earthquake hit. In March

the Center for Latin American Stud-

ies invited Marcelin, chair of the

Interuniversity Institute for Research

and Development (INURED), to lead a

discussion on the Coral Gables cam-

pus about the pulverization of Haiti’s

already fractured education system.

A report conducted by INURED,

composed of faculty from UM and

more than 35 other universities

assisted by students from the Haitian

Education & Leadership Program,

estimates that 121 to 200 profes-

sors and anywhere from 2,599 to

6,000 students in higher education

perished. Marcelin says that estab-

lishing standardized learning centers

throughout the provinces is one way

to rebuild the nation’s intellectual

infrastructure.

School of Communication lec-

turer Yves Colon took a two-month

leave from the University to work

with Internews, a media develop-

ment organization serving poor and

disaster-stricken countries. Colon

was the only Creole-speaking editor

on the group’s Port-au-Prince team,

which created daily 10- to 15-min-

ute newscasts burned onto CDs and

rushed by motorcycle to 25 local

radio stations. “I wanted to do some-

thing that would be useful,” he says.

The desire to open portals of

knowledge inspired the School of

Communication, which launched

kozeayiti.org this past April. A vol-

unteer effort of faculty, staff, alumni,

students, and members of the Haitian

diaspora, the bilingual (English/Cre-

ole) initiative, allows “young Haitian

media makers and journalists to

develop and distribute stories

through its website to media in

Haiti and the world.”

Sasha Kramer, international

studies adjunct professor and visit-

ing scholar at UM’s Center for Latin

American Studies, was teaching

about sustainable development chal-

lenges in Haiti when the earthquake

hit. Once her students returned to

School of Communication lecturer

Yves Colon spent two months in Haiti

working with international media or-

ganization Internews to mentor young

journalists and create daily newscasts.

2 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 2 1

the States, Kramer began transport-

ing supplies and patients through her

nonprofit organization SOIL (Sustain-

able Organic Integrated Livelihoods).

Haitian-born clinical psychologist

and UM associate professor Guerda

Nicolas, who lost family members to

the quake, has worked with colleagues

in epidemiology and nursing to coor-

dinate disaster-related mental health

assessments and trainings as well as

counseling services in Miami’s large

Haitian community and in Haiti.

The cultural traditions of her native

country, she has written, are “the

roots that continue to sustain Haiti

and that allow it to flourish in the

midst of the storms.”

F A C I L I T A T I N G D I V E R S E D I A L O G U E S

This year marked the introduction of

a new, essential resource for nurtur-

ing scholarly collaboration in the hu-

manities and enriching the region’s

intellectual culture. The first of its

kind in South Florida, the Center for

the Humanities in the College of Arts

and Sciences offers a dynamic slate

of programming accessible to the

public, both on campus and online.

Symposia, lectures, and

workshops are among the activities

that unite UM faculty from differ-

ent disciplines with groundbreak-

ing interdisciplinary scholars from

around the world. February’s Atlantic

Narratives symposium, which exam-

ined works in and about the Atlantic

world through the mid-19th century,

featured panelists from institutions

including the University of Wisconsin-

Madison, McGill University, the

University of Virginia, and Ohio State

University as well as from UM. In

April, the Trans Global/Global Trans

symposium convened some of the

nation’s top leaders in the field of

gender studies to explore global

perspectives on the formation of

gender and sexual identity.

Symposia like these, says center

director and professor of English

Mihoko Suzuki, demonstrate how

scholarship in humanities disciplines

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

Can an elusive idea be conveyed with

Legos? Can a concept be carved out

of a block of wood? Last fall, biology

professor Keith Waddington debuted

a new class designed to encourage

students to explore the techniques

of both liberal arts and the scientific

method, seeking a creative cross-

fertilization that would spawn wholly

new processes and projects.

Called, appropriately enough,

ArtScience, the course is designed

“to bring together students from

the humanities and sciences, with

the hope that they see where their

approaches are different and where

they overlap,” says Waddington.

“I give them unique topics and get

them to think really creatively, using

art and science alike.”

Waddington himself is both a

scientist and an artist; with wife Mindy

Nelson, he has hosted creativity-

based salons, where some aspects of

the new course were developed. In

addition to readings and discussions

about interdisciplinary endeavors,

students are assigned to explore the

scientific method’s ability to help

solve unconventional problems in

the arts.

One class project assigned

students to take surveys of common

nightmares, then visually represent

the results. In another, students

built and populated fanciful islands,

then took scientific measurements

of the creatures they’d created. “It

was interesting to contrast the col-

laborative outcomes with how we

solved problems initially,” recalls

architecture major Michael O’Neil.

“We learned how important art and

science are to each other.”

According to Mihoko Suzuki, director

of the recently launched Center for the

Humanities, one of the center’s aims

“is to bring dialogue and inquiry to the

South Florida community in order to

enrich its public intellectual culture.”

Opportunities for collaborative cross-

fertilization between art and science

are explored in biology professor Keith

Waddington’s ArtScience class. In one

assignment, students build islands

from materials such as Legos, then

measure the density of their creations’

plant and animal life.

2 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 2 3

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

humanistic studies provide a vital framework to help

transmute information into understanding. At UM,

high-tech tools and scientific perspectives complement

lively intellectual inquiry that engages with contem-

porary issues while expanding the possibilities

of human endeavor. Opening festivities for the Center for the Humanities included a lecture on

Shakespeare’s relevance to modern culture by renowned Harvard University

scholar and author Marjorie Garber.

provides “the necessary contexts for

us to arrive at a more informed under-

standing of issues we face in the con-

temporary world.” Strong attendance

at the center’s inaugural events—from

members of the general public and

faculty to students from colleges

throughout Florida—demonstrates

the ability of the center to foster

constructive dialogue on important

topics among people who might not

otherwise interact.

The center’s robust online pres-

ence sets it apart from the 200-plus

centers of its kind around the world.

Its website (www.humanities.miami.

edu) includes features like Insight

Tracks—video commentary from

UM professors on upcoming events

in collaboration with area arts

organizations—and BookTalk, which

provides discussion by faculty who

are publishing new work. Visitors

to the interactive site can also catch

archived video from lectures and

symposia.

collections, the Libraries also award

digital fellowships to faculty seeking

to digitize resources that will have a

significant impact on teaching, learn-

ing, and research.

“Our ultimate goal is to create a

central scholarly virtual resource that

will meet the needs of UM faculty,

scholars, and students in the arts,

humanities, and beyond,” says

Walker. Thanks in large part to his

efforts, that goal is clearly in view.

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

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

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

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

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

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

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

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

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

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

last year.

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

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

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

through the Organization of American States; during the summer in between, she accompanied

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

Already the founding director of Young Bahamian Marine Scientists, an environmental

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

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

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

the Bahamas through education.”

resources. These achievements have

helped earn the Libraries a spot

among the nation’s top 50 academic

research libraries.

The Libraries’ 44,000 digital

resources include photographs, man-

uscripts, videos, books, and other

objects drawn from 36 University

of Miami collections, including the

Cuban Heritage Collection, oral his-

tories of South Floridians, theses and

dissertations, thematic exhibits, and

more. Online library users also can

access ARTstor, a database of more

than one million images in the arts,

architecture, humanities, and social

sciences. In an innovative approach

to broadening access to scholarly

In recent years, Dean and

University Librarian William

Walker has spearheaded dramatic

growth at the University Libraries,

which serve as a technologically

advanced, resource-rich partner

in scholarly activities throughout

the University community.

A growing range of general and special

collections and University Archives

holdings are digitized at the University

Libraries, preserving often fragile

materials and making them more

broadly available to scholars.

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

From stem cell research to CEO com-

pensation, ethical considerations

inform every human endeavor. “You’ll

find ethical issues in the headlines

of any major newspaper,” says Anita

Cava, co-director of University of

Miami Ethics Programs and professor

of business law in the School of

Business Administration.

Learning to grapple with such

challenges, says co-director Ken

Goodman, professor of medicine and

philosophy, “is precisely what a great

university is all about. Rules are fine

and opinions are nice, but serious

ethics demands reasons for beliefs.”

A suite of University-wide

interdisciplinary initiatives that drive

an extraordinary range of classes,

conferences, research projects, and

seminars, the UM Ethics Programs

include the only World Health

Organization Collaborating Center

in Ethics in the United States. The

Ethics Programs are an international

leader in ethics and information

technology and have an NIH grant to

foster biomedical research ethics in

Latin America. Ethics programming

now permeates nearly every aspect

of University life and has inspired ex-

tracurricular activities such as the UM

Ethics Society, whose debate team

has racked up a series of victories

in the Intercollegiate Ethics Bowl.

Community leader and UM

Trustee Adrienne Arsht has con-

tributed $3 million to UM Ethics

Programs over the past four

years, supporting the debates, a

distinguished speaker series, and

research grants.

Ultimately, says Cava, “We’re

trying to help students reason

through issues and make good deci-

sions that will withstand scrutiny.”

Professors Ken Goodman and Anita

Cava co-direct UM Ethics Programs,

a suite of University-wide initiatives

devoted to examining the ethical

dimensions of business, medicine,

law, and other disciplines.

2 4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 2 5

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

In the 21st century, libraries are much

more than repositories of books. The

University of Miami Libraries are on

the cutting edge of what a contem-

porary academic library can be.

With rotating exhibitions, liter-

ary readings, information literacy

and digital technology courses, rare

objects that tell the history of South

Florida and surrounding regions, and

an on-site Starbucks, the Otto G.

Richter Library, the flagship of

the University Libraries system,

is a social, cultural, and intellec-

tual hub for the entire Univer-

sity community.

Led by Dean and Univer-

sity Librarian William D. Walker,

the Libraries have in recent

years seen a 35 percent growth

in holdings—now more than

3.3 million volumes—and an

explosion of multimedia and

networked information

JULY 2009

Helping Structures

Withstand Storms

s The National Institute of Stan-

dards and Technology of the U.S.

Department of Commerce awards

the University of Miami a $15 mil-

lion grant funded by the American

Recovery and Reinvestment Act to

build a new high-tech research facil-

ity at the Rosenstiel School of Marine

and Atmospheric Science, where

scientists will study how structures

and their surrounding environment

are affected by hurricanes. The facil-

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

Marine Life Science Center.

No. 1 Again

For the sixth year in a row, the Miller

School of Medicine’s Bascom Palmer

Eye Institute is ranked the No. 1

hospital in the country for ophthal-

mology in the 20th annual survey of

“America’s Best Hospitals,” published

by U.S.News & World Report.

AUGUST 2009

Cracking the Top Tier

The University of Miami cracks the

top tier of U.S.News & World Report’s

2010 edition of “America’s Best

Colleges,” coming in at No. 50. The

following year, UM rose to No. 47 in

the rankings.

Gift Advances Genomics

s The Miller School’s Miami Institute

for Human Genomics, nationally

known for its groundbreaking work

in unraveling some of the medical

mysteries behind autism and many

common diseases, receives a

$20 million naming gift from

the John P. Hussman Foundation to

support its critical research efforts.

SEPTEMBER 2009

Linking Well-Being with Law

The School of Law establishes the

nation’s first Therapeutic Jurispru-

dence Center. The center conducts

theoretical and empirical research in

an innovative field that uses the tools

of the behavioral sciences to increase

the understanding of law and how it

can be reshaped to diminish its anti-

therapeutic effects and maximize its

therapeutic potential. It also pub-

lishes scholarly books, articles, and

reports; trains judges and lawyers;

conducts community programs; and

hosts conferences, symposia, and

other educational programs.

Mancini in Miami

s After ten years in Los Angeles, the

Henry Mancini Institute finds a new

home at the Frost School of Music.

HMI is embedded within the Frost

School curriculum, preparing music

students for careers as working

musicians. In addition, the Frost

School now houses the institute’s

library, which consists of hundreds

of pieces for orchestra by Henry

Mancini and other film and contem-

porary composers.

A Tooth for an Eye

s In the first such operation in the

United States, surgeons at Bascom

Palmer Eye Institute implant a tooth

in a 60-year-old blind woman’s

eye, using it to anchor an artificial

cornea that has restored her vision.

Sharon “Kay” Thornton, of Smithdale,

Mississippi, had been blind for nine

years due to Stevens-Johnson syn-

drome, a rare, serious skin condition

that destroys the cells on the surface

of the eye, causing severe scarring

of the cornea.

Graduate School Enrollment

Surges

s The Graduate School records a

significant increase in enrollment in

fall 2009, admitting 28 percent more

students than in 2007 or 2008.

Capturing Carbon

The Department of Energy awards

$1.7 million to a team of researchers

at the Rosenstiel School to investi-

gate new methods for monitoring

leakage from potential carbon diox-

ide (CO2) reservoirs, which are used

to store the gas underground—keep-

ing it out of the atmosphere, where it

would do substantial harm.

New Clinic Helps Immigrants

The School of Law launches an ambi-

tious clinic in which students will

represent low-income immigrants

in South Florida. Students are the

primary advocates of the clinic’s

clients, accepting cases of low-income

immigrants of all nationalities in a

full range of immigration matters,

including asylum claims and deporta-

tion defense of longtime permanent

residents.

OCTOBER 2009

Speaking of Engineering

The College of Engineering’s 2009-

2010 Distinguished Speaker Series

gets under way, featuring profession-

als who, through their research and

educational accomplishments, have

made significant contributions to the

engineering profession and society

at large.

PR Business

s The School of Business Adminis-

tration launches its Executive M.B.A.

program in Puerto Rico, enabling

professionals living and working in

the region to earn the degree with-

out interrupting their careers. The

school’s faculty members travel to

Puerto Rico to teach the classes.

NOVEMBER 2009

Supporting the Humanities

The College of Arts and Sciences

establishes and inaugurates South

Florida’s first Center for the Humani-

ties, which is dedicated to supporting

humanities, arts, and interpretive so-

cial science research and teaching, as

well as presenting public programs to

enrich the region’s intellectual culture.

A Gift from Goizueta

s The Goizueta Foundation donates

$2.4 million to the University of

Miami to support a comprehen-

sive University-wide plan that will

enhance and expand the reach of

the Otto G. Richter Library’s Cuban

Heritage Collection.

Throughout the past year, the University of Miami

continued on the fast track that has made it one of

the nation’s most distinguished research universities.

The dynamic members of the University community

capitalized on opportunities and realized myriad

accomplishments in intellectual inquiry, research,

scholarship, and service.

2 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 2 7

M I L E S T O N E S

Cataloging Marine Life

s The Rosenstiel School launches a

first-of-its-kind interactive database,

the Digital Atlas of Marine Species

and Locations, which visually cata-

logues marine life while providing

encyclopedic content to users.

Faster, Higher, Smarter

University of Miami student-athletes

who began college between 1999

and 2002 have an overall graduation

rate of 82 percent, according to

figures released by the NCAA. The

UM rate exceeds the 79 percent

figure compiled by all NCAA

Division I universities.

Online from Anywhere

The College of Engineering unveils

its Virtual Academic Computing

(ViAComp) platform, which can be

deployed from anywhere in the

world, allowing students to access

sophisticated software applica-

tions through the Internet via their

laptops, iPhones, or other mobile

devices, completely untethered.

Fraternity House Opens

The University of Miami chapter of

Sigma Alpha Epsilon fraternity joins

members of the UM community in

dedicating the first fraternity house

to be built on school grounds in

four decades.

DECEMBER 2009

Inaugural Class

s The School of Nursing and Health

Studies graduates the first class from

its new Doctor of Nursing Practice

program, which prepares expert

nurse practitioners to design, admin-

ister, and evaluate practice interven-

tions and health care systems, with

a special focus on reducing health

care disparities.

Wiping Out Hunger

With poverty a major cause of

hunger and food insecurity in the

United States, the School of Law es-

tablishes a new program through its

Center for Ethics and Public Service

aimed at addressing the problem in

South Florida. The Hunger Project

is designed to alleviate hunger in

low-income and impoverished local

communities through active solicita-

tion of non-perishable food items

to support local food pantries and

distribution programs.

JANUARY 2010

Helping Haiti

s One day after a powerful 7.0-mag-

nitude earthquake strikes Haiti, Miller

School medical personnel arrive in

Port-au-Prince to begin caring for the

injured, setting in motion a massive

University of Miami medical relief

effort that will include the establish-

ment of a 240-bed field hospital.

Foote’s Field

The University dedicates the Edward

T. Foote II University Green, giving a

new name to the area between the

Richter Library and Whitten Univer-

sity Center where Foote, UM’s fourth

president, presided over numerous

commencement ceremonies.

M.B.A. Program among the Best

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

the School of Business Administra-

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

the influential Financial Times in the

newspaper’s annual M.B.A. rankings

issue, which also ranks the school

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

world for research.

Ocean Science for Future

Generations

s The University of Miami announc-

es the creation of the R.J. Dunlap

Marine Conservation Program. This

joint initiative of the Rosenstiel

School of Marine and Atmospheric

Science and Leonard and Jayne

Abess Center for Ecosystem Science

and Policy will focus on advancing

ocean research through hands-on

field and virtual learning experi-

ences for high school and university

students.

UM Raises $1.3 Million for

United Way

Despite a sluggish economy, the

University of Miami has the most

successful United Way campaign in

its history, raising $1.3 million for the

annual fundraising effort to benefit

the community.

FEBRUARY 2010

Stimulating the Neurosciences

The National Institutes of Health

awards UM a $14.8 million grant

funded by the American Recovery

and Reinvestment Act to build a

Neuroscience and Health Annex,

which will create an interactive hub

for interdisciplinary research based

on neurological imaging and health

research and provide facilities to be

shared by scientists from the Col-

lege of Arts and Sciences and Miller

School of Medicine.

Film Treasures

s The School of Communication

acquires the $32 million Norton

Herrick collection, which includes

approximately 3,500 high-quality

films from the golden age of mov-

ing pictures, spanning the 1930s

though the 1970s. Among the rare

films in the collection: early silent

films featuring Hollywood stars such

as Charlie Chaplin, Buster Keaton,

and Mack Sennett’s Keystone Cops.

The golden age of television is also

represented in programs such as This

Is Your Life, The Roy Rogers and Dale

Evans Show, and The George Burns

and Gracie Allen Show.

Helping Miami’s Poor

s The School of Law launches two

new clinics aimed at helping needy

and underrepresented clients. The

Federal Appellate Clinic provides

upper-level students with the

opportunity to plan, research, and

draft pending federal appeals for

indigent criminal defendants referred

by the federal public defender for

the Southern District of Florida. The

Tenants’ Rights Clinic allows students

to represent clients being evicted

from public and subsidized housing,

receiving Section 8 terminations,

or having their affordable housing

applications denied.

All’s Well at the “U”

s The University of Miami takes a

major step toward improving the

overall health of its workers and their

family members by rolling out a new

employee wellness program, Well

’Canes, that includes everything from

cooking and exercise classes and free

preventive care to vending machines

that dispense fresh fruit.

Recording Contract

The School of Law and the Frost

School of Music launch a new joint

degree program in law and music

business. The first of its kind in

the country, the program enables

students to earn a J.D. and a Master

of Music in Music Business and

Entertainment Industries.

Cancer Colloquium

The School of Education, in conjunc-

tion with the School of Nursing and

Health Studies, hosts the first annual

“From Surviving to Thriving” col-

loquium. The event provides health

care professionals and survivors with

up-to-date information on physical

fitness and nutrition in breast cancer

survivorship.

Landmark Summit

s The College of Engineering or-

ganizes and hosts a first-of-its-kind

joint regional meeting between the

National Academy of Engineering

and the Institute of Medicine, where

scientists and physicians gather to

examine the role of engineering in

improving health care.

MARCH 2010

Rebuilding a Nation

For five days in late March, Haitian

architects and engineers—unable to

work effectively in their own studios

back home, where infrastructure was

destroyed by the devastating January

12 earthquake—gather at the School

of Architecture to collaborate with

professors, students, and local plan-

ners on an ambitious post-disaster

plan for the Caribbean nation’s

recovery. Proposals presented to

the Haitian government include

plans to spur economic growth in

outlying regions.

Dream Season

s The University of Miami women’s

basketball team defeats the Michigan

Wolverines to secure a berth in the

Women’s National Invitation Tourna-

ment Championship Game, marking

2 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 2 9

the first time in team history that UM

advances to the finals of the postsea-

son tournament.

The Memory of an Elephant

Nelson Dellis, a graduate student

in the College of Arts and Sciences’

Department of Computer Science,

breaks a national record at the 13th

Annual USA Memory Championship

by remembering the first 178 digits

of a randomly generated 500-digit

number, with only five minutes to

study it.

APRIL 2010

Moving Up

s The University of Miami places

high in the 2011 edition of “America’s

Best Graduate Schools,” published by

U.S.News & World Report. The Miller

School of Medicine ranked No. 47,

moving up four slots from No. 51 last

year. The School of Law has the most

dramatic rise, moving up 11 slots in

one year. The school is ranked 60th

this year out of 188 schools; last year

it was ranked number 71.

Global Initiative Comes to UM

s The third Clinton Global Initiative

University conference is held at UM.

More than 1,300 students from 83

countries and all 50 states, along

with university presidents, adminis-

trators, and national youth leaders,

gather at the three-day meeting,

discussing and devising strategies

to make the world a better place.

Among the issues addressed: educa-

tion, the environment and climate

change, peace and human rights,

poverty, and global health.

Former President Bill Clinton,

who launched CGI U in 2007 to en-

gage the next generation of leaders

from college campuses around the

world, opens the conference with a

plenary address at the BankUnited

Center. He calls to the stage a group

of students to recognize them for

starting service projects, dubbed

“Commitments to Action,” which are

at the heart of his initiative.

In all, UM students account for

about 250 of the more than 1,000

new commitments at the meet-

ing, ranging from the creation of a

network of community youth centers

in the Haitian slum of Cite Soleil to a

program to rescue young victims of

sex trafficking in Miami.

Improving the Gift of Hearing

s During a news conference at the

Clinical Research Building, noted res-

taurateur Barton G. Weiss announces

that his Barton G. Kids Hear Now

Foundation has committed $5 million

to establish the Barton G. Kids Hear

Now Cochlear Implant Family Re-

source Center at the Miller School’s

Ear Institute.

An Academic Boost

s The University honors the

Camner family for its generous gift

that dedicates the newly named

Camner Academic Resource Center,

which provides tutoring, counseling,

workshops, accessibility services,

and other forms of assistance to

thousands of undergraduate and

graduate students each year.

Investing in the Future

of Nursing

The School of Nursing and Health

Studies receives funding approval

for two $20,000 scholarships from

the Jonas Nurse Leaders Scholar

Program, a new national initiative

designed to increase the number of

doctoral-prepared nurse educators

and leaders. The scholarships will

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

students.

Addressing Health Policy

The School of Business Administra-

tion announces that it will establish

a Center for Health Sector Manage-

ment and Policy, which will con-

duct and publish research; act as

a resource for technical assistance

and consultation on health care

management practices; and provide

interactive conferences and forums

to educate industry professionals,

policymakers, citizens, and the Uni-

versity community.

A Taste of Margaritaville at UM

s From flying to Miami on an

expired credit card to penning his

famous “Margaritaville” while driving

along A1A, the colorful stories of

musician Jimmy Buffett, along with

a few tunes, entertain a University of

Miami audience during the Stamps

Family Charitable Foundation Distin-

guished Visitors Series, sponsored by

Roe and Penny Stamps.

Four-Star Recognition

s After evaluating more than 5,500

of America’s largest charities, Charity

Navigator ranks the University of

Miami No. 1 among charities that

have earned the most consecutive

Charity Navigator 4-Star ratings,

demonstrating fundraising efficiency

and ongoing fiscal excellence.

A Sturdier Launch Pad

The Blackstone Charitable Founda-

tion, in collaboration with the New

Economy Initiative for Southeast

Michigan, announces that Wayne

State University, Walsh College,

and the University of Miami have

been selected as partners for the

foundation’s first significant grant of

$2 million. Blackstone Launch Pad

operations will be created at Wayne

State and Walsh (based on UM’s

successful Launch Pad, an entrepre-

neur and innovator resource center),

serving as a national model for

fostering entrepreneurship through

higher education. The major grant

to UM’s Launch Pad comes only a

few months after the Ewing Marion

Kauffman Foundation announces a

grant to help sustain and grow the

center.

Health and Elder Law Clinic

Wins Top Prize

s The Health and Elder Law Clinic

wins the Clinical Legal Education

Association’s prestigious Award for

Excellence in a Public Interest Case

or Project for its quick and success-

ful commitment to helping Haitians

in South Florida obtain Temporary

Protected Status following the Janu-

ary 12 earthquake in Haiti.

MAY 2010

Nurturing Young Scientists

s The University of Miami receives a

$1.4 million grant—its fifth con-

secutive—from the Howard Hughes

Medical Institute to strengthen its

undergraduate science education

program. The College of Arts and

Sciences, where the program resides,

will use the resources to help attract

first-generation college students

and those from groups traditionally

underrepresented in the sciences to

pursue careers in science.

Medical Records Go Electronic

UHealth—University of Miami Health

System catapults itself into the elec-

tronic realm of health care records

with the launch of UChart, a secure

online portal for patients to access

portions of their medical records

anytime, from anywhere.

Funding the Fight

against Cancer

The 21,000-member Papanicolaou

Corps for Cancer Research gives

$3.2 million to fund vital cancer

research at Sylvester Comprehensive

Cancer Center.

Making the Grade off

the Gridiron

s The NCAA honors the University

of Miami football program for a

multiyear Academic Progress Report

score in the top 10 percentile. UM was

the only Bowl Championship Subdivi-

sion team that finished in the final

USA Today Coaches Poll and AP Top

25 College Footbal Poll after the

2009 season.

CIBER Space

The U.S. Department of Education

awards a major grant to the Univer-

sity of Miami to establish a Center

for International Business Education

and Research (CIBER), which will be

housed at the School of Business

Administration and will carry out

programs that increase and promote

the nation’s capacity for international

understanding and competitiveness,

particularly in the service sector.

JUNE 2010

Promoting Well-Being

s The School of Education creates

the Dunspaugh-Dalton Founda-

tion Community and Educational

Well-Being Research Center. Funded

with a gift from the Dunspaugh-

Dalton Foundation, the center seeks

to prevent educational, emotional,

physical, and social problems, while

promoting well-being in individu-

als, relationships, organizations, and

communities through interdisciplinary

research, university-community part-

nerships, educational and leadership

training, and consultation services.

3 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 1

3 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 3

The University’s performance in fiscal year 2010 improved significantly

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

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

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

markets and the effects of cost-containment measures implemented

over the last two years.

Report on Business and Finance

As the economic uncertainty contin-

ues, we remain focused on strength-

ening our balance sheet (recognizing

that this will be more marathon than

sprint) and otherwise improving

financial performance.

Overall, the University’s net

assets increased $43.1 million, or

3 percent. This year’s increase, much

like the prior year’s decrease, was

largely driven by changes in the value

of our investments. The endowment

has a long way to go to regain its

2007 peak level, but FY 2010 returns

helped considerably, adding $80 mil-

lion to endowment net assets after

accounting for gifts and normal

spending distributions. Endowment

spending represents less than 2 per-

cent of operating revenues, which

has minimized the effect of the mar-

ket decline on University operations.

Unrestricted net assets from

non-operating activities increased

$82.2 million, driven primarily by a

17 percent investment return on

Growth Pool assets, made up of endow-

ment and a portion of working capital.

Both the Growth Pool and the pension

trust benefited from solid returns

across a number of asset classes.

Operating revenues of $2.216 bil-

lion were up $125 million, or 6 percent,

while operating expenses increased

just $63 million, or 3 percent, resulting

in an increase in net assets from

operating activities of $12.5 million.

Tuition and fees revenues

increased $23 million, or 6 percent,

due to a modest rate increase and

growth in student enrollment in

graduate programs, especially law.

Enrollment has held steady dur-

ing the recession, helped by the

strengthening of the UM brand. We

were pleased to be recognized in the

recently released U.S.News & World

Report college rankings as the top

school in Florida, with a three-notch

improvement nationwide to 47th.

Prospective students are recognizing

the “U” as well. Freshman applica-

tions for the Fall 2010 semester

increased 18 percent over Fall 2009.

Grants and contracts revenues

were up nearly $7 million, or 1.5 per-

cent, due primarily to an increase in

federal grants.

Patient care operations revenues

(both medical professional practice

3 4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 5

and hospitals and clinics) were up

$101 million, or 10 percent. Expenses

were up just $37 million, or 4 percent.

All three University hospitals had

significant growth in net patient rev-

enue, with Sylvester Comprehensive

Cancer Center/UMHC up 10 percent,

University of Miami Hospital (UMH)

up 15 percent, and Anne Bates Leach

Eye Hospital (ABLEH) up 7 percent.

For the seventh consecutive year,

Bascom Palmer Eye Institute, resident

at ABLEH, was named the country’s

top eye hospital by U.S.News & World

Report. UMH, in its second full year

of University ownership as a

multi-specialty acute care hospital,

increased net patient care revenues

significantly through its growing

array of outstanding clinical services

(including state-of-the-art robotic

surgical capabilities) and solid core

of community physicians. Outpatient

visits, in particular, had solid growth

due to expanded multidisciplinary

programs in areas such as sports

medicine, complex imaging, bariat-

rics, pain management, and gastro-

intestinal procedures.

Non-operating activities, where

the bulk of the investment perfor-

mance improvement is reflected on

the financial statements, was a posi-

tive $82 million, as compared to last

year’s negative $287 million. What

a difference a year makes!

Pension-related changes for

the Employees Retirement Plan

(ERP) and other post-retirement

benefits were a negative $53 million,

as compared to last year’s negative

$112 million. The University’s

$42 million in plan contributions and

$66 million (18 percent) return on

invested capital was more than offset

by actuarial adjustments resulting

from a 1 percent reduction in the

discount rate. The ERP has been

frozen to new participants since June

1, 2007, when a new defined contri-

bution plan was launched. The ERP

will require large contributions each

year for the foreseeable future.

Gifts and trusts from operating

and non-operating sources increased

$2.8 million. It is encouraging to see

a slight uptick in philanthropy. We are

confident that our donors’ generosity

will rebound over time along with

the overall economy.

Cost containment played an

important role in our improved

results, with dozens of initiatives

contributing. Overtime expenses

were reduced. Monthly tuition bill-

ing went online, saving paper and

postage. Document management and

storage costs were reduced. Shuttle

routes around campus were revised,

improving efficiency and customer

service. Though the savings from

most changes were modest, signifi-

cant savings were achieved on

a University-wide basis.

The University has an ambitious

strategic vision and mission that can

only be achieved through the efforts

of its talented faculty and staff. Part

and parcel of that success is the well-

being of our people. Accordingly, the

University adopted a Wellness Philos-

ophy that established a framework

and expectations for employees and

managers to actively support health,

a healthy lifestyle, and a culture

where wellness is valued.

At the same time, we’ve taken

steps to improve the safety of our

campuses, implementing a new

Emergency Notification System

and enhancing storm and disaster

preparedness.

We are using capital resources

sparingly and strategically. On

the Coral Gables campus, the

67,000-square-foot Newman Alumni

Center opened in October. An

expansion to the Herbert Wellness

Center, a student favorite, is under

way and will be completed next

spring. Deep in the planning process

are the Miguel B. Fernandez Family

Entrepreneurship Building and, at

the Rosenstiel School campus, the

Marine Technology and Life Sciences

Seawater Research Building. In

addition, we are developing plans

for a state-of-the-art health center

on the Coral Gables campus that

will provide easy access to world-

class medical care for faculty, staff,

students, and residents of South

Miami-Dade County.

At the Miller School of Medicine

campus, construction was completed

on a 23,000-square-foot modular

research laboratory that will house

basic scientists from neurology

and medicine. Ground has been

broken on the first building at the

University of Miami Life Science

& Technology Park on the eastern

border of the medical campus. The

250,000-square-foot facility is being

developed by Wexford Science &

Technology, a leading developer of

life science parks. The first tenant,

the UM Tissue Bank, is scheduled for

move-in the summer of 2011.

The Miller School has begun im-

plementing UChart, a state-of-the-art

clinical enterprise information system

that will improve access to patient

records and increase the efficiency

of scheduling and billing.

Finally, I am pleased to report

that two important leadership posi-

tions in Business and Finance were

filled this year. Nerissa Morris joined

the University as vice president of

human resources after a long and

successful career with the Ford

Motor Company. John Shipley, a

seasoned financial executive at

Purdue University, became our vice

president of finance and treasurer.

Nerissa and John succeeded

Roosevelt Thomas and Diane Cook,

respectively, each of whom provided

extraordinary service to the Univer-

sity for more than 30 years.

In closing, the board and the

administration are committed to

managing the fiscal affairs of the Uni-

versity in a responsible manner. Our

success is dependent not only on our

13,000-plus faculty and staff, whose

contributions are innumerable, but

also on our students, trustees, donors,

and other friends of the University.

Together they make the University a

wonderful place to teach, work, and—

most importantly—learn.

Joe Natoli

Senior Vice President for

Business and Finance

and Chief Financial Officer

0

1,000

500

1,500

3,000

2,500

2,000

$3,500

TOTAL ASSETS(in millions)

2010200920082006 2007

3,240

2,941

2,503

2,9122,982

0

200

100

300

400

600

700

500

$800

ENDOWMENT FUNDS(in millions)

2010200920082006 2007

736

621

741

539

618

0

5,000

10,000

20,000

15,000

201020092008

ENROLLMENT(FTE)

2006 2007

14,81115,01114,92614,685

14,854

0

500

1,000

2,000

1,500

$2,500

201020092008

TOTAL REVENUES(in millions)

2006 2007

1,791

1,578

1,822 1,797

2,300Hospitals and Clinics$693.0 (31.3%)

Grants and Contracts$473.8 (21.4%)

MedicalProfessional Practice

$403.6 (18.2%)

Gifts and Trusts$91.5 (4.1%)

Auxiliary Enterprises$96.8 (4.4%)

Other Sources$26.6 (1.2%)

Investment Return$38.8 (1.7%)

Tuition and Fees$392.3 (17.7%)

OPERATING REVENUES – $2,216.4(in millions)

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

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

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

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

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

Report on the Endowment

3 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T

The beginning of the year was char-

acterized by unprecedented fiscal

and monetary stimulus worldwide.

While the stimulus was successful in

averting a synchronized depression,

the Euro crisis and concerns over

sovereign debt muted gains it was

intended to provide. Coupled with

the Federal Reserve position on

interest rates and the threat of

government fiscal legislation, the

economic climate proved challeng-

ing for active managers.

Market volatility during the year

provided opportunities for active

investment managers who viewed

it as a tool that allowed them to ac-

quire high-quality assets at attractive

prices. After 14 straight months of

market appreciation, April and May

saw significant profit-taking and “de-

risking” as hedge funds and other

large pools moved to safeguard

gains and avoid a second negative

return year. Fortunately this was not

a repeat of late 2008-2009, although

a number of days were reminiscent

of the worst part of the financial

meltdown. The Growth Pool’s broad

diversification, higher-than-average

liquidity, and skilled active-manager

pool all helped to produce excellent

returns during the year. In particular,

our investment managers focused on

purchasing securities of high-quality

companies at reasonable valuations.

The charts at top and center right

illustrate the Growth Pool’s outper-

formance against the custom bench-

mark for one, three, five, and ten

years, as well as the nominal value of

the endowment over one, five, ten,

and 15 years.

LOOKING TO THE FUTURE

While pricing in some markets is

cause for optimism, this view must

be balanced with the likelihood that

high volatility and major macroeco-

nomic issues may become a fact of

life rather than cycles of exceptional

events. In earlier periods, such as the

1990s, high volatility was associated

with below-average returns. Ironi-

cally, it is possible we are entering a

new period of high volatility accom-

panied by above-average market

returns. We are confident that the

University’s managers will be able

to exploit the often spectacular

misvaluations that volatility typically

creates. Many analysts believe that

most markets are reasonably priced

or even inexpensive, providing an

excellent starting point for the

new year.

The chart at bottom right details

the Growth Pool’s asset allocation as

of May 31, 2010. The policy targets

are reviewed annually by the Board

of Trustees’ Investments Committee,

which also reviews the pool’s perfor-

mance against a custom benchmark

and peer institutions. Individual

manager performance is reviewed on

a regular basis and all managers are

subject to the University’s rigid due

diligence process. The portfolio con-

tinues to be well positioned to deal

with the conditions that lie ahead.

John R. Shipley

Vice President of Finance

and Treasurer

U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 7

10 Year 3.1% 1.8% -0.8% 6.5% 2.6%

5 Year 3.1% 1.5% 0.3% 5.3% 2.5%

3 Year -4.7% -6.3% -8.7% 6.9% 1.9%

1 Year 17.0% 13.2% 21.0% 8.4% 2.8%

Time Period

Growth Pool Returns

(net of fees)

Benchmark Returns

TotalPortfolio

S&P 500

Barclay’s Aggregate Bond Index

CPI Increase

Rate

G R O W T H P O O L V S . K E Y I N D I C E S

Beginning Balance $538.6 $526.1 $465.2 $264.9

Return, including unrealized appreciation 86.7 75.5 142.5 386.8

Distributions to operations, etc.* (32.7) (152.1) (259.8) (338.1)

Gifts and other net additions 25.6 168.7 270.3 304.6

Ending Balance $618.2 $618.2 $618.2 $618.2

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

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

OneYear

Five Years

Ten Years

Fifteen Years

Asset Class

U.S. Large/Mid Cap Equity 17.5 18.3

U.S. Small Cap Equity 5.0 5.3

International Equity 20.0 18.5

Emerging Markets Equity 2.5 3.5

Global Fixed Income 12.0 13.1

Hedge Funds 30.0 28.4

Private Equity 5.0 6.6

Real Assets (including real estate) 8.0 6.3

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

Policy Target

May 2010

Allocation (%)

Asset Class

3 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 3 9

Independent Auditor’s Report

To the Board of Trustees

University of Miami

We have audited the accompanying statements of financial position of the University of Miami (the University) as of May 31, 2010 and

2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility

of the University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial state-

ments. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as

evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the University

as of May 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting

principles generally accepted in the United States of America.

Fort Lauderdale, Florida

August 27, 2010

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

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

Member of RSM International network, a network of

independent accounting, tax and consulting firms.

May May 2010 2009

Assets Cashandcashequivalents $ 119.0 $ 126.7 Accountsandloansreceivable 359.0 337.4 Contributionsreceivable 99.0 101.1 Otherassets 52.1 52.0 Investments 766.3 713.7 Propertyandequipment 1,434.4 1,431.6 Trustsheldbyothers 52.0 48.6 Intangibleassets 100.3 101.2

TotalAssets $ 2,982.1 $ 2,912.3

Liabilities Accountspayableandaccruedexpenses $ 160.7 $ 147.2 Deferredrevenuesandotherdeposits 70.5 80.5 Accruedpostretirementbenefitcost 310.9 255.4 Otherliabilities 125.3 117.7 Actuarialliabilityofannuitiespayable 8.5 7.8 Reservesformedicalself-insurance 80.8 65.4 Governmentadvancesforstudentloans 23.0 22.7 Bondsandnotespayable 844.3 900.6

TotalLiabilities 1,624.0 1,597.3

NetAssets Unrestricted 830.0 788.6 Temporarilyrestricted 154.4 170.3 Permanentlyrestricted 373.7 356.1

TotalNetAssets 1,358.1 1,315.0

TotalLiabilitiesandNetAssets $ 2,982.1 $ 2,912.3

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

Statements of Financial PositionAsofMay31,2010and2009(inmillions)

4 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 1

May May 2010 2009

Changesinunrestrictednetassets Operatingactivities Operatingrevenues Tuitionandfees,net $ 392.3 $ 369.5 Grantsandcontracts 473.8 467.0 Medicalprofessionalpractice 403.6 372.6 Hospitalsandclinics 693.0 623.3 Giftsandtrusts 58.5 69.2 Netassetsreleasedfromrestrictions 33.0 17.3 Endowmentspendingdistribution 32.7 34.7 Investmentreturn 6.1 7.3 Auxiliaryenterprises,net 96.8 99.5 Othersources 26.6 31.2

Totaloperatingrevenues 2,216.4 2,091.6

Operatingexpenses Instruction 445.7 448.7 Research 208.8 202.5 Publicservice 168.8 154.2 Patientcare 965.0 927.9 Auxiliaryenterprises 138.4 141.3 Academicsupport 131.9 130.3 Studentservices 44.1 44.4 Institutionalsupport 101.2 92.2

Totaloperatingexpenses 2,203.9 2,141.5

Changeinunrestrictednetassetsfromoperatingactivities 12.5 (49.9)

Non-Operatingactivities Endowment,annuityandotherinvestmentreturn 66.8 (306.4) Giftsandtrusts 8.3 6.1 Netlossonsale,disposal,andexchangeofpropertyandequipment (1.7) (1.1) Othersources – (.3) Netassetsreleasedfromrestrictions 9.2 16.3 Transfertopermanentlyrestrictednetassets (.4) (1.1)

Changeinunrestrictednetassetsfromnon-operatingactivities 82.2 (286.5)

Postretirementbenefitsrelatedchangesotherthannetperiodicbenefitcost (53.3) (111.8)

Increase(decrease)inunrestrictednetassets 41.4 (448.2)

Changesintemporarilyrestrictednetassets Endowment,annuityandotherinvestmentreturn 1.5 (3.0) Giftsandtrusts 26.6 13.4 Changesinvalueofannuitiespayableandtrustsheldbyothers (1.1) (2.0) Netassetsreleasedfromrestrictions (42.2) (33.6) Transfertopermanentlyrestrictednetassets (.7) –

Decreaseintemporarilyrestrictednetassets (15.9) (25.2)

Changesinpermanentlyrestrictednetassets Endowment,annuityandotherinvestmentreturn 4.4 2.3 Giftsandtrusts 12.1 14.0 Transferfromunrestrictedandtemporarilyrestrictednetassets 1.1 1.1

Increaseinpermanentlyrestrictednetassets 17.6 17.4

Increase(decrease)intotalnetassets 43.1 (456.0)NetAssets Beginningofyear 1,315.0 1,771.0

Endofyear $ 1,358.1 $ 1,315.0

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

Statements of Activities

FortheyearsendedMay31,2010and2009

(inmillions)

May May 2010 2009

Cashflowsfromoperatingactivities Increase(decrease)intotalnetassets $ 43.1 $ (456.0) Adjustmentstoreconcileincrease(decrease)intotalnetassetstonetcashprovidedby(usedin)operatingactivities Netrealizedandunrealized(gains)lossesoninvestmentsandotherassets (102.2) 289.7 Giftsandtrusts (50.0) (26.6) Depreciationandamortization 124.5 110.2 Provisionfordoubtfulaccounts 97.1 81.0 Netlossonsale,disposal,andexchangeofpropertyandequipment 1.7 1.1 Presentvalueadjustmentonannuitiespayableandtrustsheldbyothers 1.1 2.0 Amortizationofbondpremiums (2.4) (1.0) Changeinoperatingassetsandliabilities Increasein Accountsandloansreceivable (110.2) (139.5) Goodwill (1.7) – Otherassets (.5) (5.2) Increase(decrease)in Accountspayableandaccruedexpenses 13.5 (14.1) Deferredrevenues,annuitiespayableandotherliabilities (3.3) (3.1) Accruedpostretirementbenefitcost 55.5 132.3 Reservesformedicalself-insurance 15.4 8.0 Governmentadvancesforstudentloans .3 (.2)

Netcashprovidedby(usedin)operatingactivities 81.9 (21.4)

Cashflowsfrominvestingactivities Purchasesofinvestments (195.1) (169.5) Proceedsfromthesalesandmaturitiesofinvestmentsandsalesofotherassets 253.3 375.2 Capitalexpendituresforpropertyandequipment (119.5) (223.4) Studentandsharedappreciationmortgageloans: Newloansmade (13.3) (19.9) Principalcollected 4.8 6.9

Netcashusedininvestingactivities (69.8) (30.7)

Cashflowsfromfinancingactivities Giftsforplantexpansionandendowment 34.1 23.3 Proceedsfromtheissuanceofdebt 45.4 55.0 Paymentstoretirebondsandnotespayable (99.3) (43.9)

Netcash(usedin)providedbyfinancingactivities (19.8) 34.4

Cashandcashequivalents Netdecrease (7.7) (17.7) Beginningofyear 126.7 144.4

Endofyear $ 119.0 $ 126.7

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

Statements of Cash FlowsFortheyearsendedMay31,2010and2009(inmillions)

4 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 3

Notes to Financial

StatementsMay31,2010and2009

Notes to Financial StatementsMay31,2010and2009

1. OrganizationTheUniversityofMiami(theUniversity)isaprivatenot-for-profitinstitutionlocatedinSouthFlorida.Foundedin1925,theUniversityownsandoperateseducationalandresearchfacilitiesaswellasahealthcaresystem.Itsmissionistoeducateandnurturestudents,tocreateknowledgethroughinnovativeresearchprograms,andtoprovideservicetoourcommunityandbeyondbypursuingexcellenceinhealthcare. ThesefinancialstatementsincludetheaccountsofallentitiesinwhichtheUniversityhasasignificantfinancialinterest,andoverwhichtheUniversityhascontrol,includingitshospitalsandclinics.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedinthepreparationofthesestatements.

2. SummaryofSignificantAccountingPoliciesandReportingPractices

BasisofPresentationThefinancialstatementsoftheUniversity,includingitshospitalsandclinics,havebeenpreparedontheaccrualbasisofaccountingandinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericafornot-for-profitorganizations. Thethreenetassetcategoriesasreflectedintheaccompanyingfinancialstatementsareasfollows:

Unrestricted-Netassetswhicharefreeofdonor-imposedrestrictions.ItincludestheUniversity’sinvestmentinpropertyandequipmentandamountsdesignatedbymanagementforsupportofoperations,programs,andfacilitiesexpansion.TheUni-versityhasdeterminedthatanydonor-imposedrestrictionsforcurrentordevelopingprogramsandactivitiesaregenerallymetwithintheoperatingcycleoftheUniversityand,therefore,theUniversity’spolicyistorecordthesenetassetsasunrestricted.Thiscategoryincludesallrevenues,expenses,gainsandlossesthatarenotchangesinper-manentlyortemporarilyrestrictednetassets.Italsoincludesrealizedandunrealizedgainsonendowmentandotherlong-terminvestments,eventhoughtheUniversity’spolicyistoreinvestsuchearningsforfuturegrowthandtousetheseearningsinac-cordancewithdonorstipulationsastotheoriginalgiftcorpus. Unrestrictednon-operatingactivitiesreflecttransactionsofalong-terminvestmentorcapitalnatureincludingnetrealizedandunrealizedinvestmentgainsnotusedtosup-portcurrentoperationsaswellascontributionstobeusedforfacilitiesandequipment.TemporarilyRestricted-NetassetswhoseusebytheUniversityislimitedbydonor-imposedstipulationsthateitherexpirewiththepassageoftimeorthatcanbefulfilledorremovedbyactionsoftheUniversitypursuanttothosestipulations.Thesenetassetsareavailableforprogrampurposes,i.e.,education,research,publicservice,andschol-arships,aswellasforbuildingsandequipment.PermanentlyRestricted-NetassetswhoseusebytheUniversityislimitedbydonor-imposedstipulationsthatneitherexpirewiththepassageoftimenorcanbefulfilledorotherwiseremovedbyactionsoftheUniversity.Thesenetassetsareinvestedinperpetuity,theincomefromwhichisexpendedforprogrampurposes,i.e.,education,research,publicservice,andscholarships.

UseofEstimatesThepreparationofthesefinancialstatementsrequiresmanagementoftheUniversitytomakeanumberofestimatesandassumptionsrelatingtothereportedamountsofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefi-nancialstatementsandthereportedamountsofrevenuesandexpensesduringtheperiod.Actualresultscoulddifferfromthoseestimates.

IncomeTaxesTheUniversityisexemptfromfederalincometaxesunderSection501(c)(3)oftheInternalRevenueCode.Accordingly,noprovisionforincometaxesismadeinthefinancialstatements.

CashEquivalentsAllhighlyliquidinvestmentswithamaturityofthreemonthsorlesswhenpurchasedareconsideredtobecashequivalents.

InvestmentsInvestmentsarereportedatfairvalue.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketpartici-pantsatthemeasurementdate.Seenote5forfairvaluemeasurements. TheUniversity’sinvestmentsincludevarioustypesofinvestmentsecuritieswhichareexposedtovariousriskssuchasinterestrate,market,andcreditrisk.Duetothelevelofriskassociatedwithcertaininvestmentsecuritiesandthelevelofuncertaintyrelatedtochangesinthevalueofinvestmentsecurities,itispossiblethatchangesinrisksintheneartermcouldmateriallyaffecttheamountsreportedinthefinancialstatements.

RevenueRecognitionTuitionandfeesrevenueisreportedinthefiscalyearinwhicheducationalprogramsareprimarilyconducted.Scholarshipsandfellowshipsawardedtostudentsfortuition,fees,androomandboardarebaseduponneedandmerit,andarenettedagainsttuitionandfees,andauxiliaryenterprisesrevenueinthestatementsofactivitiesasfollows(inmillions): 2010 2009

Scholarshipsandfellowships: Institutionallyfunded $ 133.4 $ 130.1 Externallyfunded-giftsandgrants 10.5 10.0

Totalamountnettedagainst tuitionandfeesrevenue $ 143.9 $ 140.1

Amountnettedagainstauxiliaryenterprisesrevenue $ 10.3 $ 10.5

Giftsofcash,propertyandmarketablesecuritiesarerecordedasrevenuewhenreceived.Unconditionalpledges(note4)arerecognizedasrevenuebasedontheestimatedpres-entvalueofthefuturecashflows,netofallowances,whenthecommitmentisreceived.Pledgesmadeandcollectedinthesamereportingperiodarerecordedwhenreceivedintheappropriatenetassetcategory.Conditionalpledgesarerecordedasrevenueonlywhendonorstipulationsaresubstantiallymet. Grantsandcontractsrevenueisrecognizedasexpensesareincurred. Medicalprofessionalpractice,andhospitalsandclinicsrevenue(patientcarerevenue)arerecordednetofcontractualadjustments,discountsandallowances,andincludeamountsestimatedbymanagementtobepaidbythird-partygovernmentalandprivatepayors. Revenuereceivedbeforeitisearnedisdeferred.

AnnuitiesPayableandTrustsHeldbyOthersCertaingiftannuities,charitableleadandremainderannuitytrustagreementshavebeenenteredintowithdonors.AssetsheldundertheseagreementsarevaluedatfairvaluebasedoneitherthepresentvalueofexpectedcashflowsorthevalueoftheUniversity’sshareoftheunderlyingassets.Theseassetsareincludedintrustsheldbyothersonthestatementsoffinancialposition,exceptforgiftannuitieswhichareincludedininvestments.Giftannuitiesincludedininvestmentstotaled$17.3and$17.2millionatMay31,2010and2009,respectively.Generally,revenuefromgiftannuitiesandtrustsisrecognizedatthedatetheagreementsareestablishednetofliabilitiesforthepresentvalueoftheestimatedfuturepaymentstodonorsand/orotherbeneficiaries. Theliabilitiesareadjustedduringthetermofthetrustsforchangesinthevalueoftheassets,accretionofthediscount,andotherchangesintheestimatesoffuturebenefits. TheUniversityisalsothebeneficiaryofcertainperpetualtrustswhicharealsoincludedintrustsheldbyothersonthestatementsoffinancialposition.Thefairvalueofthetrusts,whicharebasedoneitherthepresentvalueoftheestimatedfuturecashreceiptsorthefairvalueoftheassetsheldinthetrust,arerecognizedasassetsandgiftandtrustrevenueasofthedatetheUniversityisnotifiedoftheestablishmentofthetrust.Distributionsfromthetrustsarerecordedasgiftandtrustrevenue,andthecarryingvalueoftheassetsisadjustedforchangesinfairvalue.

MedicalSchoolFacultyphysicians,inadditiontoteachingandconductingresearch,engageinthepracticeofmedicine,whichgeneratespatientcarerevenue.Revenuesandexpenses,includingcom-pensationandadministrativeoperationsfromthepracticeofmedicine,arereflectedasUniversityrevenuesandexpenses.Thenetassetsofpatientcareactivitiesaredesignatedformedicalschoolprograms. TheUniversityandthePublicHealthTrustofMiami-DadeCounty,Florida(PHT),ownerandoperatorofJacksonMemorialHospital(JMH),haveenteredintoanaffiliationagree-mentrelatedtotheirindependentmissionswithinthedesignatedlandandfacilitiesthatcomprisetheJacksonMemorialMedicalCenter.Pursuanttothatagreement,thePHTpro-videsclinicalfacilitiesfortheteachingoftheUniversity’smedicalstudents.Medicaleduca-tionofitsstudentsisthesoleresponsibilityoftheUniversity.Inaddition,theUniversityhasagreedtopermititsfacultytoapplyforprivilegesatJMHtotrainandsuperviseJMHhousestaff(interns,residents,andfellows)andtotreathospitalpatientsintheircapacityasmembersofJMH’sattendingmedicalstaff.Allsuchtreatmentandtrainingisthesolere-sponsibilityofthePHTinitscapacityasthelegalownerandoperatoroftheJacksonHealthSystem’spublichospitalsandclinicsanditsstatutoryteachinghospital(JMH).Theaffilia-tionagreementprovidesthetermsforthemutualreimbursementofservicesprovided.

InsuranceTheUniversitymanagespropertyandliabilityrisksthroughacombinationofcommercialinsurancepoliciesandself-insurance. TheUniversityisself-insuredformedicalprofessionalliabilityandhospitalliabilityandmaintainscommercialexcesslosscoveragewithinspecifiedlimits.Provisionsformedicalprofessionalliabilityclaimsandrelatedcostsarebasedonseveralfactors,includinganannualactuarialstudyusingadiscountrateof3%asofMay31,2010and2009.

PropertyandEquipmentPropertyandequipmentisstatedatcostlessaccumulateddepreciationandamortization.Depreciationiscomputedonastraight-linebasisovertheestimatedusefullivesofthere-latedassets.Depreciationisnotrecordedonlandandartobjects.Leaseholdimprovementsareamortizedoverthelesseroftheleasetermortheusefullife.

FacilitiesandAdministrativeCostRecoveryTheFederalgovernmentreimbursestheUniversityforfacilitiesandadministrativecostsincurredinconnectionwithresearchgrantsandcontractsbasedonpredeterminedratesthrough2011.Facilitiesandadministrativecostrecoveryfromgovernmentandprivatesourcesincludedingrantandcontractrevenuestotaled$65.7and$60.1millionduringtheyearsendedMay31,2010and2009,respectively.

FacilitiesExpensesFacilitiesrelatedexpenseshavebeenallocatedacrossapplicablefunctionalexpensecat-egoriesinthestatementsofactivitiesbasedonspaceusage(inmillions): 2010 2009

Depreciationandamortization $ 124.5 $ 110.2Interest 38.3 39.3Operationsandmaintenance 110.8 118.0

Total $ 273.6 $ 267.5

AccountingChangeDuetoNewPronouncementsInJuly2009,theFinancialAccountingStandardsBoard(FASB)issuedtheFASBAccountingStandardsCodification(ASC)asthesinglesourceofauthoritativenon-governmentalGAAP.TheCodificationiseffectiveforinterimandannualperiodsendingafterSeptember15,2009.AllexistingaccountingstandardsweresupersededasdescribedinASC105(formerlyStatementofFinancialAccountingStandards(SFAS)No.168,TheFASBAccountingCodifi-cationandtheHierarchyofGenerallyAcceptedAccountingPrinciples).Allotheraccount-ingliteraturenotincludedintheCodificationisnon-authoritative.TheUniversityadoptedFASBCodificationforthefiscalyearendedMay31,2010. InMarch2008,theFASBissuedASC815-10(formerlySFASNo.161,DisclosuresaboutDerivativeInstrumentsandHedgingActivities–anamendmentofSFASNo.133).ThestandardamendsandexpandsthedisclosurerequirementsofSFASNo.133withtheintenttoprovideusersoffinancialstatementswithanenhancedunderstandingofhowandwhyanentityusesderivativeinstruments,howderivativeinstrumentsandrelatedhedgeditemsareaccountedforunderSFASNo.133anditsrelatedinterpretations,andhowderivativeinstrumentsandrelatedhedgeditemsaffectanentity’sfinancialposition,financialperformance,andcashflows.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InDecember2008,theFASBissuedASC715(formerlySFASNo.132(R)-1Employers’DisclosuresaboutPensionsandOtherPostretirementBenefits-anamendmentofFASBStatementNo.132).Thisstandardprovidesguidanceonanemployer’sdisclosuresaboutplanassetsofadefinedbenefitpensionandotherpostretirementbenefits.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InApril2009,theFASBissuedASC820(formerlyStaffPosition157-4,DeterminingFairValueWhentheVolumeandLevelofActivityfortheAssetorLiabilityHaveSignificantlyDecreasedandIdentifyingTransactionsThatAreNotOrderly).Thestandardexpandsdis-closuresandrequiresthatformajorcategoriesofdebtandequitysecurities,thefairvaluehierarchytablebedeterminedonthebasisofthenatureandrisksoftheinvestments.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010. InMay2009,theFASBissuedASC855-10(formerlySFASNo.165,SubsequentEvents),furtherupdatedinFebruary2010throughUpdateNo.2010-09–SubsequentEvents–AmendmentstoCertainRecognitionandDisclosureRequirements.Thestandardasamendedestablishesaccountingrecognitionanddisclosurerequirementsofeventsthatoccurafterthestatementoffinancialpositiondatebutpriortotheissuanceoffinancialstatements.TheUniversityhasevaluatedsubsequenteventsthroughAugust27,2010not-ingnoimpactontheUniversity’sfinancialstatements. InSeptember2009,theFASBissuedASC740(UpdateNo.2009-06,IncomeTaxes-ImplementationGuidanceonAccountingStandardsforUncertaintyinIncomeTaxesandDisclosureAmendmentsforNonpublicEntities:AnInterpretationofSFASNo.109).Thestandardprovidespracticalimplementationguidanceonuncertaintaxpositionstakenbyanentity.TheUniversityadoptedthisstandardforthefiscalyearendedMay31,2010.TheUniversity’smanagementanalyzeditstaxpositionsanddeterminedthatnoincometaxadjustmentrelatedtotheadoptionofthisstandardisnecessary.

ImpairmentofLong-LivedAssetsASC360(formerlySFASNo.144,AccountingforImpairmentorDisposalofLong-LivedAssets)requiresthatlong-livedassetstobeheldbyanentity,includingintangibleassets,bereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable.NoassetimpairmentswererecordedbytheUniversityinfiscalyears2010or2009.

ReclassificationsCertainamountsintheprioryear’sfinancialstatementshavebeenreclassifiedtoconformtothecurrentyears’presentation.

2.SummaryofSignificantAccountingPoliciesandReportingPractices(continued)

4 4 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 5

Notes to Financial

StatementsMay31,2010and2009

Notes to Financial StatementsMay31,2010and2009

3.AccountsandLoansReceivableAtMay31,accountsandloansreceivableconsistofthefollowing(inmillions): 2010 2009

Accountsandloansreceivable,net: Patientcare $ 192.6 $ 172.8 Grants,contractsandother 80.8 87.4 Sharedappreciationmortgages 50.6 41.5 Student 5.6 5.0Studentloans,net 29.4 30.7

Total $ 359.0 $ 337.4

Accountsandloansreceivable,andstudentloansreceivablearenetofallowancesfordoubtfulaccountsof$113.7and$1.1million,respectively,for2010and$86.7and$.9mil-lion,respectively,for2009. Sharedappreciationmortgageswereprovidedaspartofaprogramtoattractandretainexcellentfacultyandsenioradministratorsthroughhomemortgagefinancingassistance.Sharedappreciationnotesamountingto$53.1millionand$44.0million(netof$2.5millionallowancefordoubtfulaccounts)atMay31,2010and2009,respectively,fromUniversityfacultyandsenioradministratorsarecollateralizedbysecondmortgagesonresidentialproperties.TheprogramwassuspendedeffectiveDecember31,2008withlimitedexceptions. Studentloansaremadeprimarilypursuanttofederalprogramsandavailabilityoffunding.Therelatedreceivableshavesignificantgovernmentrestrictionsastomarketabil-ity,interestrates,andrepaymentterms.Theirfairvalueisnotreadilydeterminable.

4.ContributionsReceivable(Pledges)Unconditionalpledgesarerecordedatthepresentvalueoftheirfuturecashflowsusingadiscountratecommensuratewiththeriskinvolved.TheyareexpectedtoberealizedinthefollowingperiodsatMay31,(inmillions): 2010 2009

Inoneyearorless $ 28.5 $ 28.8Betweenoneyearandfiveyears 58.5 59.1Morethanfiveyears 41.1 53.6

128.1 141.5Discountof$18.6andallowanceof$10.5for2010and$28.8and$11.6for2009,respectively (29.1) (40.4)

Total $ 99.0 $ 101.1

5.InvestmentsThefairmarketvalueofinvestmentsatMay31,2010and2009amountedto$766.3and$713.7million,withacostbasisof$739.0and$753.0million,respectively.Shortterminvest-mentsconsistprimarilyofcommercialpaperwithmaturitiesinexcessofthreemonths.Amountsincludedinlimitedpartnershipsandlimitedliabilitycompanies,other,representalternativeinvestmentswhicharevaluedatthenetassetvalueoftheentitiesasdeter-minedbythefund.Themajorityofinvestmentsarecombinedininvestmentpoolswitheachindividualaccountsubscribingtoordisposingofsharesonthebasisofthefairvaluepershare.AtMay31,2010and2009,thefairvalueoftheUniversity’sprimaryinvestmentpool(theGrowthPool)amountedto$695.2and$616.0million,withacostbasisof$668.5and$651.8million,respectively.TheGrowthPoolismanagedbymultipleinvestmentmanagerswithassetallocationpertheUniversity’sinvestmentpolicy.Thetotalnetunrealizedgain(loss)oninvestmentsfortheyearendedMay31,2010and2009was$65.3and($160.4)mil-lion,respectively.

FairValueofInvestmentsFASBASC820(formerlySFASNo.157,FairValueMeasurement),providestheframeworkformeasuringfairvalue.Thatframeworkprovidesafairvaluehierarchythatprioritizestheinputstovaluationtechniquesusedtomeasurefairvalue.Thehierarchygivesthehighestprioritytounadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities(Level1measurements)andthelowestprioritytounobservableinputs(Level3measurements).ThefollowingdescribesthehierarchyofinputsusedtomeasurefairvalueandtheprimaryvaluationmethodologiesusedbytheUniversityforinvestmentsmeasuredatfairvalue:

Level1—Valuationsforassetsandliabilitiestradedinactiveexchangemarkets,suchastheNewYorkStockExchange.Level1alsoincludesU.S.Treasuryandfederalagencysecuritiesandfederalagencymortgage-backedsecurities,whicharetradedbydealersorbrokersinactivemarkets.Inputstothevaluationmethodologiesincludeunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthatareaccessibleatthemeasurementdate.Level2—Valuationsforassetstradedinlessactivedealerorbrokermarkets.Inputstothevaluationmethodologiesincludequotedpricesfromthirdpartypricingservicesforidenticalorsimilarassetsinactiveand/orinactivemarkets;inputsotherthanquotedpricesthatareobservablefortheassetorliability;orinputsthatarederivedprinci-pallyfromorcorroboratedbyobservablemarketdatabycorrelationorothermeans.Level3—Valuationsforassetsthatarederivedfromothervaluationmethodologies,includingoptionpricingmodels,discountedcashflowmodelsandsimilartechniques,andnotbasedonmarketexchange,dealer,orbrokertradedtransactions.Inputstothevaluationmethodologiesincorporatecertainassumptionsandprojectionsindetermin-ingthefairvalueassignedtosuchassets.

Theassetorliability’sfairvaluehierarchyisbasedonthelowestlevelofanyinputthatissignificanttothefairvaluemeasurement.TheUniversityutilizesvaluationtechniquesthatmaximizetheuseofobservableinputsandminimizetheuseofunobservableinputs.TherehavebeennochangesinthemethodologiesusedatMay31,2010. Thevaluationmethodologiesusedforotherinvestmentinstrumentsmeasuredatfairvalueconsistedof:

VariableRateSwapAgreementTheUniversityenteredintoa$20.0millioninterestrateswapagreementinfiscal2005tomanagethemarketriskassociatedwithoutstandingvariable-ratedebt.Partiestothein-terestrateswapagreementaresubjecttomarketriskforchangesininterestratesaswellasriskofcreditlossintheeventofnonperformancebythecounterparty.TheUniversitydealsonlywithhighqualitycounterpartiesthatmeetratingcriteriaforfinancialstabilityandcreditworthiness.Theestimatedcumulativefairvaluelossoftheswapagreementwas$2.8and$1.9millionfortheyearsendedMay31,2010and2009,respectivelyandisincludedinotherinvestmentsinthetablebelow.Changesinthefairvalue,whichforfiscal2010and2009amountedtoanunrealizedlossof$.9and$.8million,respectively,arerecordedasnon-operatingactivitiesinthestatementsofactivities.

AtMay31,2010

Total Level1 Level2 Level3

Shortterminvestments $ 18.7 $ - $ 18.7 $ -Debtsecurities: U.S.Treasuryandother governmentagencies 5.0 5.0 - - U.S.andpoliticalsubdivisions ofthestates 5.1 - 5.1 -Publiclytradedstocks: Large-midcap 50.0 50.0 - - Smallcap 19.3 19.3 - -Mutualfunds: Equities: Emergingmarkets 6.1 - 6.1 - International 1.6 - 1.6 - Large-midcap 6.9 - 6.9 - Smallcap 18.9 - 18.9 - FixedIncome 61.7 - 61.7 - Balanced 12.0 - 4.6 7.4Limitedpartnershipsandlimitedliabilitycompanies: Equities: Emergingmarkets 18.1 - 18.1 - International 128.8 - 128.8 - Large-midcap 76.5 - 76.5 - Fixedincome 86.6 - 37.0 49.6 Privateequity 45.6 - - 45.6 Other: Eventarbitrage 66.3 - - 66.3 Long-shortcomposite 81.6 - 48.1 33.5 Realassetsrelatedsecurities 26.8 - 25.1 1.7 Realestate 16.9 - - 16.9Otherinvestments 13.8 13.5 .3 -

Total $ 766.3 $ 87.8 $ 457.5 $ 221.0

AtMay31,2009

Total Level1 Level2 Level3

Shortterminvestments $ 44.0 $ - $ 44.0 $ -U.S.governmentandagencyobligations 7.4 2.4 5.0 -Corporatebonds .6 - .6 -Publiclytradedstocks 52.5 52.5 - -Mutualfunds: Equities 26.2 - 26.2 - FixedIncome 54.5 - 54.5 - Balanced 11.7 - 5.3 6.4Limitedpartnershipsandlimitedliabilitycompanies: Equities 185.4 - 185.4 - Fixedincome 93.8 - 52.3 41.5 Privateequity 37.6 - - 37.6 Other 181.7 - 68.4 113.3Otherinvestments 18.3 18.8 (.5) -

Total $ 713.7 $ 73.7 $ 441.2 $ 198.8

5.Investments(continued)FairValueofInvestments(continued)

ThefollowingtablessetforthasummaryofchangesinthefairvalueoftheUniversity’slevel3investments.

FortheyearendedMay31,2010(inmillions): Purchases,sales, Transfersin issuancesand NetIncome and/orout May31,2009 settlements,net Reinvested Realized Unrealized oflevel3 May31,2010

Mutualfunds-balanced $ 6.4 $ (.1) $ .3 $ - $ .8 $ - $ 7.4Limitedpartnershipsandlimitedliabilitycompanies: Fixedincome 41.5 - 1.8 - 6.3 - 49.6 Privateequity 37.6 1.9 .3 2.8 3.0 - 45.6 Other: Eventarbitrage 52.5 - .3 1.4 12.1 - 66.3 Long-shortcomposite 41.7 (12.2) (.5) 4.0 .1 .4 33.5 Realassetsrelatedsecurities 2.4 (.5) - (.3) .1 - 1.7 Realestate 16.7 2.0 .4 .2 (2.4) - 16.9

Total $ 198.8 $ (8.9) $ 2.6 $ 8.1 $ 20.0 $ .4 $ 221.0

Thefollowingtablessetforthbylevel,withinthefairvaluehierarchy,theUniversity’sinvestmentsatfairvalue(inmillions):

Totalnetgains(losses)includedinchangesinnetassets

4 6 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 7

Notes to Financial

StatementsMay31,2010and2009

Notes to Financial StatementsMay31,2010and2009

FortheyearendedMay31,2009(inmillions): Purchases,sales, Transfersin issuancesand NetIncome and/orout May31,2008 settlements,net Reinvested Realized Unrealized oflevel3 May31,2009

Mutualfunds $ 8.2 $ (.1) $ .2 $ (.1) $ (1.8) $ - $ 6.4Limitedpartnershipsandlimitedliabilitycompanies 204.2 19.7 4.9 1.3 (37.7) - 192.4

Total $ 212.4 $ 19.6 $ 5.1 $ 1.2 $ (39.5) $ - $ 198.8

9.EndowmentInAugust2008,theFASBissuedASC958-205-50(formerlyFASBStaffPosition117-1,EndowmentsofNot-for-ProfitOrganizations:NetAssetClassificationofFundsSubjecttoanEnactedVersionoftheUniformPrudentManagementofInstitutionalFundsAct,andEnhancedDisclosuresforAllEndowmentFunds).Thisstandardprovidesguidanceonthenetassetclassificationofdonor-restrictedendowmentfundsforanonprofitorganizationthatissubjecttoanenactedversionoftheUniformPrudentManagementofInstitutionalFundsActof2006(UPMIFA).TheStateofFloridahasnotyetenactedaversionofUPMIFA.ShouldtheStateofFloridaenactaversionofUPMIFAinafutureperiod,theBoardofTrusteesoftheUniversity(theBoard)willneedtointerprettherelevantlaw.Basedonthisinterpretation,thisstandardcouldrequiresignificantreclassificationsofsomeportionofdonor-restrictedendowmentfunds,fromunrestrictedtotemporarilyrestrictednetassets.Thisstandardalsorequiresadditionaldisclosuresaboutanorganization’sendowmentfunds,whetherornottheorganizationissubjecttoUPMIFA.Thedisclosurerequirementsofthisstandardarereflectedbelow.

InterpretationofRelevantLawAsdiscussedabove,theStateofFloridahasnotenactedUPMIFA.TheBoardhasinterpretedthecurrentlaw,UniformManagementofInstitutionalFundsAct(UMIFA)asrequiringpreser-vationofthefairvalueoftheoriginalgiftasofthegiftdate,absentexplicitdonorstipulationstothecontrary.Asaresultofthisinterpretation,theUniversityclassifiesaspermanentlyrestrictednetassets(a)theoriginalvalueofgiftsdonatedwherethedonorhasstipulatedthattheprincipalistobemaintainedinperpetuitywithonlytheincomefromthegifttobeexpended,(b)theoriginalvalueofsubsequentsimilartypegifts,and(c)accumulationstothefundmadeinaccordancewiththedirectionoftheapplicabledonorgiftinstrument.Endowmentsareclassifiedastemporarilyrestrictedwherethedonorhasstipulatedthattheprincipalofthegiftmaybereleasedfrominviolabilitytopermitallorpartoftheprincipaltobeexpended,andasunrestrictedendowmentswheretheBoard,ratherthanadonor,decidestoretainandinvesttheprincipalwithonlytheincomeavailabletobeexpended.TheBoardhastherightatanytimetoexpendtheprincipalofunrestrictedendowments.

SpendingPolicyTheUniversity’sendowmentspendingdistributionpolicyinsupportofitsprogramsdistrib-utesfivepercentofthethree-yearmovingaverageofthefairmarketvalueoftheendow-mentinvestmentpool.NewendowmentsmustbereceivedpriortoDecember31inordertoactivatethespendingdistributionforthenextfiscalyear.Inaddition,nodistributionismadefromanendowmentuntilitsfundingreaches,byDecember31,thelevelstipulatedbypolicy.Further,endowmentstoestablishChairsandProfessorshipshaveanadditionaldelayofoneyearbeforedistributionsaremade.

ReturnObjectivesandRiskParametersTheUniversityhasadoptedinvestmentandspendingpoliciestoprotectthepurchasingpoweroftheendowmentandtominimizetheeffectofcapitalmarketfluctuationsonoperatingbudgets. UndertheGrowthPoolpolicyfortheUniversity’sprimaryinvestmentpool(theGrowthPool),asapprovedbytheBoard,theintentistoachievearateofreturnequaltoorgreaterthantherespectivebenchmark,whileassumingamoderatelevelofrisk.Tosatisfyitslong-termrate-of-returnobjectives,theUniversityreliesonatotalreturnstrategyinwhichin-vestmentreturnsareachievedthroughbothcapitalappreciation(realizedandunrealized)andcurrentyield(interestanddividends).TheUniversitytargetsadiversifiedassetalloca-tionthatplacesagreateremphasisonequitybasedinvestmentstoachieveitslong-termreturnobjectiveswithinprudentriskconstraints.Thecurrentlong-termreturnobjectiveistoearnareturnofatleasttheConsumerPriceIndexplus5%,netoffees.Actualreturnsinanygivenyearmayvaryfromthisamount.

Endowmentnetassetsconsistofthefollowing(inmillions): Temporarily Permanently Unrestricted Restricted Restricted Total

AsofMay31,2009: Donorrestricted endowmentfunds $ 83.9 $ 29.1 $ 301.2 $ 414.2 Quasiendowmentfunds 124.4 - - 124.4

Total $ 208.3 $ 29.1 $ 301.2 $ 538.6

AsofMay31,2010: Donorrestricted endowmentfunds $ 128.6 $ 29.3 $ 312.7 $ 470.6 Quasiendowmentfunds 147.6 - - 147.6

Total $ 276.2 $ 29.3 $ 312.7 $ 618.2

Donorrestrictedendowmentfundsincludedinunrestrictedendowmentnetassetsrep-resentstheunappropriatedappreciationofendowmentfunds,netofdeficienciesinthemarketvalueofcertainendowmentrelatedassetswhichfellbelowthedonorrequiredleveltoretainfundsinperpetuity.AtMay31,2010and2009,thisdeficiencyamountedto$14.1and$28.4million,respectively,andresultedfromunfavorablemarketfluctuationsthatoccurredshortlyaftertheinvestmentofnewpermanentlyrestrictedcontributions,aswellascontinuedappropriationsforcertainprogramsthatwasdeemedprudent. Quasiendowmentfundsareresourcessegregatedforlongterminvestmentandin-cludegainsandlossesonunrestrictedinvestments,andotherresourcesdesignatedbytheBoardofTrusteesforfutureprogramsandoperations. ChangesinendowmentnetassetsforthefiscalyearsendedMay31,2010and2009consistof(inmillions): Temporarily Permanently Unrestricted Restricted Restricted Total

Balance,May31,2008 $ 419.2 $ 29.2 $ 287.8 $ 736.2 Investmentreturn Investmentincome 12.9 - - 12.9 Netdepreciation (realizedandunrealized) (196.7) - - (196.7)

Totalinvestmentreturn (183.8) - - (183.8) Giftsandtrusts - .2 12.3 12.5 Endowmentspending distributionforprograms (34.7) - - (34.7) Transferstocreatequasi endowmentfunds 3.5 - - 3.5 Other 4.1 (.3) 1.1 4.9

Balance,May31,2009 208.3 29.1 301.2 538.6

Investmentreturn Investmentincome 5.5 - (.3) 5.2 Netappreciation (realizedandunrealized) 81.5 - - 81.5

Totalinvestmentreturn 87.0 - (.3) 86.7 GiftsandTrusts - .1 10.7 10.8 Endowmentspending distributionforprograms (32.7) - - (32.7) Transferstocreatequasi endowmentfunds 9.4 - - 9.4 Other 4.2 .1 1.1 5.4

Balance,May31,2010 $ 276.2 $ 29.3 $ 312.7 $ 618.2

Totalnetgains(losses)includedinchangesinnetassets

ThetotalLevel3unrealizedgains(losses)fortheperiodsrelatingtothoseinvestmentsstillheldatMay31,2010and2009total$20.0and($39.5)million,respectively,andarereflectedaspartofinvestmentreturninthestatementofactivities.TheUniversityisobligatedundercertaininvestmentfundagreementstoperiodicallyad-vanceadditionalfundinguptospecifiedlevels.AtMay31,2010,theUniversityhadfutureinvestmentfundingcommitmentsof$50.5million.

InvestmentReturnTheUniversity’sendowmentspendingdistributionpolicyistodistributefivepercentofthethree-yearmovingaveragefairmarketvalueoftheendowmentinvestmentpool.Thispolicyisdesignedtoprotectthepurchasingpoweroftheendowmentandtominimizetheeffectofcapitalmarketfluctuationsonoperatingbudgets. Thecomponentsoftotalinvestmentreturnasreflectedinthestatementsofactivitiesareasfollows(inmillions): 2010 2009

Operating: Endowmentspendingdistribution $ 32.7 $ 34.7 Investmentreturn 6.1 7.3

Totaloperatinginvestmentreturn 38.8 42.0

Non-Operating: Unrestricted Endowmentinterestanddividendincome,realized andunrealizedgains(losses),netofendowment spendingdistribution 54.4 (218.5) Othernetrealizedandunrealizedgains(losses) 12.4 (87.9)

Totalunrestrictednon-operatinginvestmentreturn 66.8 (306.4) Temporarilyrestrictedinvestmentreturn 1.5 (3.0) Permanentlyrestrictedinvestmentreturn 4.4 2.3

Totalnon-operatinginvestmentreturn 72.7 (307.1)

Totalinvestmentreturn $ 111.5 $ (265.1)

6.FairValueofFinancialInstrumentsOtherThanInvestmentsThecarryingamountsofcashandcashequivalents,patient,studentandotherreceivables,accountspayableandaccruedexpensesapproximatefairvalueduetotheshortmaturityofthesefinancialinstruments.Thecarryingamountsofnotespayablewithvariableinter-estratesapproximatetheirfairvaluesincethevariableratesreflectcurrentmarketratesfornoteswithsimilarmaturitiesandcreditquality.Thefairvalueofbondspayablewithfixedinterestratesisbasedonratesassumedtobecurrentlyavailableforbondissueswithsimilartermsandaveragematurities.TheestimatedfairvalueofthesebondspayableatMay31,2010and2009approximated$795.1and$811.6million,respectively.Thecarry-ingamountsofthesebondspayableatMay31,2010and2009approximated$799.7and$823.5million,respectively.

7.PropertyandEquipmentPropertyandequipmentandrelatedaccumulateddepreciationandamortizationatMay31consistofthefollowing(inmillions): UsefulLives 2010 2009

Land - $ 91.0 $ 91.2Landimprovements 20years 77.3 74.6Buildingsandbuildingimprovements 8to50years 1,477.0 1,359.0Leaseholdimprovements 1to50years 32.6 35.1Constructioninprogress - 27.5 93.6Moveableequipment 3to20years 498.3 457.7Librarymaterials 12years 108.6 105.1Artobjects - 49.7 49.1

2,362.0 2,265.4Accumulateddepreciationandamortization (927.6) (833.8)

Total $1,434.4 $1,431.6

Interestonborrowingstofinancefacilitiesiscapitalizedduringconstruction,netofanyinvestmentincomeearnedthroughthetemporaryinvestmentofprojectborrowings.Netinterestexpenseof$1.7and$3.2millionwascapitalizedfortheyearsendedMay31,2010and2009,respectively.

8.IntangibleAssetsOnDecember1,2007,theUniversityacquiredcertainassetsandliabilitiesofageneralacutecarehospital.Aspartofthetransaction,intangibleassetswererecordedamountingto$105.2million.Inaddition,theUniversityacquiredaphysicianpracticeandrecorded$1.7millionasanintangibleassetfortheyearendedMay31,2010. Intangibleassetsrecordedareasfollows(inmillions): UsefulLife 2010 2009

Amortizedintangibleassets Goodwillatgrosscarryingvalue 40years $ 105.8 $ 104.1 AccumulatedAmortization (6.6) (4.0)Indefinitelivedintangibleassets 1.1 1.1

Total $ 100.3 $ 101.2

5.Investments(continued)FairValueofInvestments(continued)

4 8 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 4 9

Notes to Financial

StatementsMay31,2010and2009

Notes to Financial StatementsMay31,2010and2009

10.PensionandOtherPostretirementBenefitPlansTheUniversityhastwonon-contributoryretirementplans,theFacultyRetirementPlanandtheEmployeeRetirementPlan.ThesetwoplansclosedtonewparticipantsonMay31,2007.OnJune1,2007anewretirementplanwasestablished,theRetirementSavingsPlan. TheUniversityalsosponsorsanunfunded,definedbenefitpostretirementhealthplanthatcoversallfull-timeandpart-timeregularemployeeswhoelectcoverageandsatisfytheplan’seligibilityrequirementswhentheyretire.Theplaniscontributorywithretireecontributionsestablishedasapercentageofthetotalcostforretireehealthcareandforthehealthcareoftheirdependents.TheUniversitypaysallbenefitsonacurrentbasis. TheRetirementSavingsPlan(SavingsPlan)isadefinedcontributionplaninwhichtheUniversitymakesanautomaticcorecontributionof5%ofpaywithadollar-for-dollarmatchonvoluntarycontributionsuptoanadditional5%ofpay.ParticipationislimitedtofacultyandstaffhiredonorafterJune1,2007orwhoelected,priortoJune1,2007,totransfertothisplanfromtheFacultyRetirementPlanorfromtheEmployeeRetirementPlan.CoreandmatchingcontributionstotheSavingsPlanfor2010and2009were$27.7and$18.2million,respectively. TheRetirementSavingsPlanII(SavingsPlanII)isadefinedcontributionplantheUniversityestablished,effectiveJanuary1,2008,thatcoverssubstantiallyallemployeesoftheUniversityofMiamiHospital(UMH).TheplanisavailabletoemployeeswhomeetcertaineligibilityrequirementsandrequiresthatUMHmatchcertainpercent-agesofparticipants’contributionsuptocertainmaximumlevels.CoreandmatchingcontributionstotheSavingsPlanIIwereapproximately$3.9and$2.9millionfortheyearsendedMay31,2010and2009,respectively. FacultyRetirementPlan(FacultyPlan)isadefinedcontributionplanforeligiblefacultyhiredbetweenSeptember30,1977andMay31,2007,andcertainfacultyhiredonorbeforeSeptember30,1977,whoceasedparticipationintheEmployeePlan.UnderthetermsoftheFacultyPlan,theUniversitymakescontributionstoindividualretirementac-countsforeacheligiblefacultymember.Paymentfromtheretirementaccountcommenceswhenthefacultymemberhasseparatedfromserviceandelectstobegindistributionsinaccordancewithplanprovisions. ContributionstotheFacultyPlanarebaseduponacombinationofcompensation,tenurestatus,lengthofservice,andotherfactorsandarefundedasaccrued.Thesecontributionswere$25.5and$25.2millionfortheyearendedMay31,2010and2009,respectively.Inad-ditiontotheabovenotedplans,therearedeferredcompensationarrangementsforcertainemployees,principallyclinicalfaculty,theliabilityforwhichisincludedinotherliabilities. TheEmployeeRetirementPlan(EmployeePlan)isadefinedbenefitplanprimarilyforfull-timenon-facultyemployeeshiredbeforeJune1,2007.EmployeePlanassetsareheldbyaTrustee.Thebenefitsarebasedonyearsofserviceandtheemployee’scom-pensationduringthelastfiveyearsofemployment.TheEmployeePlanalsoprovidesanalternativebenefitthroughacashbalancebenefitformuladeterminedeachyearbasedoncompensationandinvestmentearnings. AtMay31,2009,aproposedEmployeePlanamendmentwasapprovedbytheInternalRevenueServicewhichenablestheplantoofferlumpsumdistributionoptionstopartici-pantswhoretiredonorafterJanuary1,2001andmettheRuleof70. ThemeasurementdatefortheEmployeePlanandpostretirementhealthbenefitplanisMay31forfiscalyears2010and2009. Thefollowingbenefitpayments,whichreflectexpectedfutureservice,areexpectedtobepaid,forthefiscalyearsendingMay31(inmillions): PensionBenefits PostretirementBenefits

2011 $ 32.7 $ .2 2012 33.2 .2 2013 35.6 .2 2014 36.1 .2 2015 38.5 .2 2016-2020 224.5 1.2

TheUniversityexpectstocontribute$30.8milliontotheEmployeePlanand$.2milliontoitspostretirementhealthplanduringthefiscalyearendingMay31,2011. Thetablesthatfollowprovideareconciliationofthechangesintheplans’projectedbenefitobligations,fairvalueofassetsandfundedstatus(inmillions): Pension Postretirement Benefits Benefits

2010 2009 2010 2009

ChangeinBenefitObligationBenefitobligationatbeginningofyear $ 627.9 $ 613.7 $ 3.0 $ 2.6Effectofeliminatingearlymeasurementdate - 5.7 - -Servicecost–benefitsattributedtoemployeeserviceduringperiodandadministrativeexpenses 17.3 16.8 .2 .2Interestcostsaccruedtomeasurebenefitobligationatpresentvalue 41.5 41.0 .2 .2Planparticipantcontributions - - .6 .6Actuarialloss(gain) 112.2 (14.1) .2 .3Benefitspaidandadministrativeexpenses (34.9) (35.2) (.8) (.9)Changeinplanprovisions (8.1) - - -

Benefitobligationatendofyear 755.9 627.9 3.4 3.0

ChangeinPlanAssetsEmployeePlanassetsatfairvalueatbeginningofyear 375.5 493.2 - -Effectofeliminatingearlymeasurementdate - 1.5 - -InvestmentreturnonEmployeePlanassets 66.1 (87.9) - -BenefitspaidandEmployeePlanexpenses (34.9) (35.2) (.8) (.9)Employercontributions 41.7 3.9 .2 .3Planparticipantcontributions - - .6 .6

EmployeePlanassetsatfairvalueatendofyear 448.4 375.5 - -

FundedstatusAccruedpostretirementbenefitcostrecognizedonthestatementoffinancialposition $ (307.5) $ (252.4) $ (3.4) $ (3.0)

Amountsrecognizedinunrestrictednetassetsconsistof: Netactuarialloss(gain) $ 293.3 $ 232.7 $ (1.0) $ (1.2) Priorservice(credit)cost (5.7) 1.9 (.9) (1.0) Transitionobligation - - .3 .5

$ 287.6 $ 234.6 $ (1.6) $ (1.7)

AtMay31,2010and2009,theaccumulatedbenefitobligationoftheEmployeePlanwas$703.4and$587.6million,respectively,$254.9and$212.1million,respectively,inexcessofEmployeePlanassets.

Thefollowingtableprovidesthecomponentsofnetperiodicpensioncostfortheplans(inmillions): Pension Postretirement Benefits Benefits

2010 2009 2010 2009

Servicecost:Benefitsattributedtoemployeeserviceduringperiodsandadministrativeexpenses $ 17.3 $ 16.8 $ .2 $ .2

Total 17.3 16.8 .2 .2

Interestcostsaccruedtomeasurebenefitobligationatpresentvalue 41.5 41.0 .2 .2ExpectedreturnonEmployeePlanassets (31.2) (40.9) - -Amortizationofpriorservicecost/(credit)-includeschangesinpensionformulaandcostofEmployeePlanamendments (.6) .4 (.1) (.1)Amortizationoftransitionobligation - - .1 .1Recognizednetactuarialloss 16.8 7.0 - -

Netperiodicbenefitcost $ 43.8 $ 24.3 $ .4 $ .4

Thenetactuarial(gain)loss,priorservicecost(credit),andtransitionamountexpectedtoberecognizedinnetperiodicbenefitcostoverthenextfiscalyearareasfollows(inmillions): PensionBenefits PostretirementBenefits

Netactuarialloss(gain) $ 20.5 $ (.1)Priorservicecost(credit) (.6) (.1)Transitionobligation - .1

A10%annualrateofincreaseinthepercapitacostofcoveredhealthcarebenefitswasassumedfor2010.Therateisassumedtodecrease1%peryearuntilreachingtheulti-mate5.5%in2014.Assumedhealthcarecosttrendrateshaveaneffectontheamountsreportedforthehealthcareplan.A1%changeinassumedhealthcarecosttrendrateswouldhavethefollowingeffect(inmillions): 1%Increase 1%Decrease

Effectontotalofserviceandinterestcostcomponentsofnetperiodicpostretirementhealthcarebenefitcost $ .1 $ (.1)Effectonthehealthcarecomponentoftheaccumulatedpostretirementbenefitobligation .5 (.4)

Thefollowingweighted-averageassumptionswereusedfortheabovecalculations: Pension Postretirement Benefits Benefits

2010 2009 2010 2009

Discountrateforbenefitobligation 5.65% 6.65% 5.65% 6.65%Discountratefornetperiodicbenefitcost 6.65% 6.50% 6.65% 5.75%ExpectedreturnonEmployeePlanassets 8.25% 8.50% N/A N/ARateofcompensationincrease 4.20% 4.20% N/A N/A

Todeveloptheexpectedlong-termrateofreturnfortheEmployeePlan,theUniversityconsideredthehistoricalreturnsofthemajormarketindicatorsrelatingtothetargetassetallocation,aswellasthecurrenteconomicandfinancialmarketconditions.

EmployeePlanAssetsTheinvestmentpolicyandstrategy,asestablishedbytheUniversity,istoprovideforgrowthofcapitalwithamoderatelevelofvolatilitybyinvestingassetsbasedonitstargetallocations.TheweightedaveragetargetallocationsforplanassetsoftheEmployeePlanis34.0%equitysecurities,35.0%fixedincome,and31.0%otherinvestments.TheUniversityreallocatesitsinvestmentsperiodicallytomeetthetargetallocations.TheUniversityalsoreviewsitsinvestmentpolicyperiodicallytodetermineifthepolicyorallocationsrequirechange.Equitysecuritiesincludeinvestmentsinlarge-midcapandsmall-capcompaniesprimarilylocatedintheUnitedStates,aswellasinternationalcompanies.Fixedincomesecuritiesincludecorporatebondsofcompaniesfromdiversifiedindustries,mortgage-backedsecurities,andU.S.Treasuries.Othertypesofinvestmentsincludeinvestmentsinhedgefundsandprivateequityfundsthatfollowseveraldifferentstrategies. TheEmployeePlan’sinvestments,bylevel,withinthefairvaluehierarchyareasfollows(inmillions): AtMay31,2010

Total Level1 Level2 Level3

Commonstocks: Large-midcap $ 21.3 $ 21.3 $ - $ - Smallcap 15.8 15.8 - -Registeredmutualfunds: Equities-emergingmarkets 3.1 - 3.1 - FixedIncome 70.0 - 70.0 -Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Equities: Emergingmarkets 9.1 - 9.1 - International 7.5 - 7.5 - Large-midcap 46.3 - 46.3 - Privateequity 18.1 - - 18.1 Other: Eventarbitrage 28.3 - - 28.3 Long-shortcomposite 19.9 - 10.6 9.3 Realestate 10.3 - - 10.3Moneymarketaccounts .7 .7 - -Commoncollectivetrusts: Equities-international 9.9 - 9.9 - Realassetsrelatedsecurities 12.7 - 12.7 -103-12Investmententities: Equities: International 38.6 - 38.6 - Smallcap 14.9 - 14.9 - Fixedincome 81.7 - 72.6 9.1Otherinvestments: Privateequity 3.8 - - 3.8 Long-shortcomposite 22.8 - 13.4 9.4 Fixedincome 9.9 - - 9.9 Realassetsrelatedsecurities 1.1 - - 1.1

Total $ 445.8 $ 37.8 $ 308.7 $ 99.3

10.PensionandOtherPostretirementBenefitPlans(continued)

5 0 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T 5 1

Notes to Financial

StatementsMay31,2010and2009

Notes to Financial StatementsMay31,2010and2009

AtMay31,2009

Total Level1 Level2 Level3

Commonstocks $ 28.7 $ 28.7 $ - $ -Registeredmutualfunds 37.9 - 37.9 -Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Privateequity 65.3 - 51.5 13.8 Eventarbitrage 22.5 - - 22.5 Realestate 10.2 - - 10.2 Other 21.1 - 10.1 11.0Moneymarketaccounts 9.5 9.5 - -Commoncollectivetrusts 11.5 - 11.5 -103-12Investmententities 132.3 - 124.9 7.4Otherinvestments: Equitiesandprivateequities 3.1 - - 3.1 Realestate 1.6 - - 1.6 Other 32.7 - 12.4 20.3

Total $ 376.4 $ 38.2 $ 248.3 $ 89.9

11.BondsandNotesPayableBondsandnotespayableatMay31consistofthefollowing(inmillions): Final 2010 Series Maturity InterestRate 2010 2009

Miami-DadeCounty,FloridaEducational 2007Ato 2015to 4.0%toFacilitiesAuthority 2008B 2038 6.1% $ 767.8 $ 789.2Notespayableto 2013to 3.3%tobanksandothers - 2014 6.5% 24.2 -Notespayabletobanksandothers 2035 Variable 20.4 77.1

Paramountofbonds andnotespayable 812.4 866.3Netunamortizedpremium 31.9 34.3

Total $ 844.3 $ 900.6

TheannualmaturitiesforbondsandnotespayableatMay31,2010areasfollows(inmillions): 2011 $ 24.4 2012 26.1 2013 26.1 2014 23.6 2015 21.9 Thereafter 690.3

Total $ 812.4

OnDecember18,2008,theUniversityenteredintoalineofcreditarrangementwhichcarriesamaximumpossiblebalanceof$100.0million.TheloanhasavariableinterestrateequaltotheLIBORDailyFloatingRateplus0.75%perannum.AsofMay31,2009,theUniversityhaddrawndown$55.0millionoftheloanbalance.OnDecember17,2009,theUniversityrenewedthelineofcreditunderthesametermswithanewmaturitydateofDecember31,2010.TherewasnobalanceoutstandingunderthelineofcreditasofMay31,2010.InNovember2009,theUniversityborrowed$20.0millionfromabanktofundtheEmployees’RetirementPlan. Totalinterestpaidonallbondsandnoteswas$42.6and$42.1millionfortheyearsendedMay31,2010and2009,respectively.

12.NetAssetsUnrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009

Designatedforoperations,programs,facilitiesexpansionandstudentloans $ 117.9 $ 94.5Cumulativepostretirementbenefitsrelatedchangesotherthannetperiodicbenefitcost (286.0) (232.9)Investedinplantfacilities 721.9 718.7Endowmentandsimilarfunds 276.2 208.3

Totalunrestrictednetassets $ 830.0 $ 788.6

TemporarilyrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009

Giftsforprogramsandfacilitiesexpansion $ 26.2 $ 36.9Contributions(pledges)andtrusts 90.0 94.8Lifeincomeandannuityfunds 8.9 9.5Endowmentandsimilarfunds 29.3 29.1

Totaltemporarilyrestrictednetassets $ 154.4 $ 170.3

PermanentlyrestrictednetassetsconsistofthefollowingatMay31(inmillions): 2010 2009

Contributions(pledges)andtrusts $ 61.0 $ 54.9Endowmentandsimilarfunds 312.7 301.2

Totalpermanentlyrestrictednetassets $ 373.7 $ 356.1

13.GiftsandTrustsTheUniversity’sAdvancementOffice(Advancement)reportstotalgiftsandtrustsbasedontheManagementReportingStandardsissuedbytheCouncilforAdvancementandSupportofEducation(CASE).Gifts,trusts,andpledges(giftsandtrusts)reportedforfinancialstate-mentpurposesarerecordedontheaccrualbasis. ThetablebelowsummarizesgiftsandtrustsreceivedfortheyearsendedMay31,2010and2009,reportedinthestatementsofactivitiesaswellastheCASEstandardsasreportedbyAdvancement(inmillions): 2010 2009

Unrestrictedgiftsandtrustsinsupportofprograms $ 58.5 $ 69.2Unrestrictedgiftsandtrustsforplantexpansion 8.3 6.1Temporarilyrestrictedgiftsandtrustsforprogramsandplantexpansion 26.6 13.4Permanentlyrestrictedendowmentgiftsandtrusts 12.1 14.0

Totalgiftsandtrusts,perstatementsofactivities 105.5 102.7

Increases(decreases)toreflectgiftsandtrustsperCASEstandards: Pledges,net 2.0 .5 Non-governmentgrants,includedingrants andcontractsrevenue 42.9 50.0 Differencesinvaluation/recording: Fundsheldintrustbyothers (.3) (4.6) Annuity .4 .5 Timing 2.6 4.5 Gift-in-kindrecordedunderCASEstandardsonly 6.4 -

TotalgiftsandtrustsasreportedbyAdvancement $ 159.5 $ 153.6

ThefollowingtablessetforthasummaryofchangesinthefairvalueoftheEmployeePlan’sLevel3investments.

FortheyearendedMay31,2010(inmillions):

Purchases,sales, Transfersin issuancesand and/orout May31,2009 settlements,net Realized Unrealized oflevel3 May31,2010

Unregisteredlimitedpartnershipsandlimitedliabilitycompanies: Privateequity $ 13.8 $ 2.2 $ 1.0 $ 1.1 $ - $ 18.1 Other: Eventarbitrage 22.5 1.4 1.7 2.7 - 28.3 Long-shortcomposite 11.0 (3.2) 1.3 .2 - 9.3 Realestate 10.2 1.2 .1 (1.2) - 10.3103-12Investmententities: Fixedincome 7.4 .6 - 1.1 - 9.1Otherinvestments: Privateequity 3.1 (.3) - 1.0 - 3.8 Long-shortcomposite 11.7 (3.0) .8 (.2) .1 9.4 Fixedincome 8.6 - - 1.3 - 9.9 Realassetsrelatedsecurities 1.6 (.3) (.5) .3 - 1.1

Total $ 89.9 $ (1.4) $ 4.4 $ 6.3 $ .1 $ 99.3

FortheyearendedMay31,2009(inmillions):

Purchases,sales, issuancesand May31,2008 settlements,net Realized Unrealized May31,2009

Unregisteredlimitedpartnershipsandlimitedliabilitycompanies $ 59.5 $ 9.7 $ - $ (11.7) $ 57.5103-12Investmententities 7.9 .7 - (1.2) 7.4Otherinvestments 26.5 1.8 (.1) (3.2) 25.0

Total $ 93.9 $ 12.2 $ (.1) $ (16.1) $ 89.9

Totalnetgains(losses)includedinchangesinnetassets

Totalnetgains(losses)includedinchangesinnetassets

10.PensionandOtherPostretirementBenefitPlans(continued)EmployeePlanAssets(continued)

14.CommitmentsandContingenciesTheUniversityhadcontractualobligationsofapproximately$66.1millionatMay31,2010forvariousconstructionprojectsandpurchasesofequipment.TheUniversityhasalsoenteredintoprofessionalserviceagreementswithHospitalCorporationofAmerica,Inc.(HCA,Inc)andvariousHCA,Inc.affiliates.Futureminimumcommitmentsundertheseagreementsrangefrom$3.1to$24.3millionperyearoverthenexteightyears,totaling$131.1million. InFebruary2008,theUniversityenteredintoafiveyearInnovationIncentiveFundingAgreementwiththeStateofFlorida(theState),OfficeofTourism,TradeandEconomicDevelopment.TheagreementcreatestheMiamiInstituteforHumanGenomics(theInstitute)andaprogramandinfrastructurethatsupportsandbenefitsitsoperations.TheagreementcallsfortheStatetofund$80.0millionwithaUniversitypledgefor$100.0mil-liontowardsthefinancialsupportoftheInstitute.AsofMay31,2010,theUniversityhasreceived$43.4millionfromtheStateandhasspent$56.8millioninmatchingfunds. TheUniversity,initsnormaloperations,isadefendantinvariouslegalactions.Ad-ditionally,amountsreceivedandexpendedundervariousfederalandstateprogramsaresubjecttoauditbygovernmentalagencies.ManagementisoftheopinionthattheoutcomeofthesematterswouldnothaveamaterialeffectontheUniversity’sfinancialpositionorresultsofoperations. TheUniversityleasescertainrealproperty.Theseleasesareclassifiedasoperatingleasesandhaveleasetermsranginguptoseventyfiveyears.TotalleaseexpensefortheyearsendedMay31,2010and2009was$21.8and$20.1million,respectively.Futuremini-mumleasepaymentsundernoncancelableoperatingleasesatMay31,2010areasfollows(inmillions): 2011 $ 6.3 2012 6.1 2013 7.8 2014 6.7 2015 5.6 Thereafter 277.2

Total $309.7

Notes to Financial

StatementsMay31,2010and2009

5 2 U N I V E R S I T Y O F M I A M I 2 0 1 0 P R E S I D E N T ’ S R E P O R T

Phillip T. George 1, 2, 3, 4

ChairChairmanBrava, L.L.C.

Leonard Abess 1, 4

Vice ChairChief Executive OfficerCity National Bank of Florida

Wayne E. Chaplin 1, 4

Vice ChairPresident and Chief Operating OfficerSouthern Wine & Spirits of America, Inc.

William L. Morrison 1, 2, 4

Vice Chair Chief Financial Officer Northern Trust Corporation

SENIOR TRUSTEESMichael I. Abrams Director, Miami Policy GroupAkerman Senterfitt

Betty G. Amos 1, 2, 3

PresidentThe Abkey Companies

Stanley H. ArkinPresidentArkin Consulting, Inc.

Jose P. Bared Chairman (Retired)Farm Stores/Gardner’s Super Market

Fred Berens Managing Director - InvestmentsWachovia Securities

M. Anthony Burns 3

Chairman EmeritusRyder System, Inc.

Charles E. Cobb 1, 4

Senior Managing Director and Chief Executive OfficerCobb Partners, Limited

Nicholas A. CranePresidentNucrane Corporation

Carlos M. de la Cruz, Sr. 4

Chairman of the Board and Chief Executive OfficerCC1 Companies, LLC

Enrique C. Falla, Sr. 2, 3

Executive Vice President (Retired)Dow Chemical Company/ Guidant Corporation

Phillip Frost 4

Chairman Ladenburg Thalmann Financial Services, Inc.

Rose Ellen Greene 1

Arthur H. Hertz 3

Chairman of the Board and Chief Executive OfficerWometco Enterprises, Inc.

David KraslowVice President (Retired)Cox Newspapers

Arva Parks McCabePresidentArva Parks & Company

Archie L. Monroe 3

M. Lee PearcePrivate Investor

Carlos A. Saladrigas Chairman and Chief Executive OfficerRegis HR Group

Ronald G. Stone 4

PresidentThe Comprehensive Companies

Robert C. Strauss

David R. Weaver 1, 4

Managing Partner and ChairmanIntercap Institutional Investors LLC

Sherwood M. Weiser 4

Chairman and Chief Executive OfficerThe Continental Companies

G. Ed Williamson II Chairman and Chief Executive OfficerWilliamson Automotive Group

Thomas D. WoodChairman Thomas D. Wood and Company

NATIONAL TRUSTEESNicholas A. Buoniconti

Alfonso FanjulChairman and Chief Executive OfficerFanjul Corp. and Florida Crystals Corporation

Steven J. GreenManaging DirectorGreenstreet Partners

Carlos M. GutierrezChairman Global Political Strategies APCO Worldwide

Lois PopePresidentLeaders in Furthering Education, Inc.

Alex E. RodriguezMajor League Baseball PlayerNew York Yankees

TRUSTEESJose R. Arriola

Adrienne Arsht

Hilarie Bass, Esq. 1, 2, 3

Global Operating ShareholderGreenberg Traurig, P.A.

Jon BatchelorExecutive Vice PresidentThe Batchelor Foundation

Joaquin F. Blaya

Norman BramanPresident, Chairman and Chief Executive OfficerBraman Management Association

Marc A. BuonicontiPresident The Miami Project to Cure Paralysis

Alfred R. Camner 2

Camner Lipsitz, P.A.

Laura G. Coulter-Jones

Edward A. Dauer 1

PresidentFlorida Medical Services, Inc.

Paul J. DiMare 1

PresidentDiMare Homestead, Inc.

David L. EpsteinManaging PartnerPresidential Capital Partners

Richard D. Fain 1, 2

Chairman and Chief Executive OfficerRoyal Caribbean Cruises, Ltd.

George Feldenkreis 2

Chairman and Chief Executive OfficerPerry Ellis International

Michael B. FernandezChairman and Chief Executive OfficerMBF Healthcare Partners, LP

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

Barbara Hecht HavenickPresident and CEOFlagler Greyhound Track and Magic City CasinoGeneral PartnerHecht Properties, Ltd.

Marilyn J. Holifield, Esq.PartnerHolland & Knight, L.L.P.

Manuel Kadre, Esq.Gold Coast Beverage Distributors

Bernard J. Kosar Jr.

Jayne Sylvester Malfitano

Robert A. Mann

Roger J. Medel 1

Chief Executive OfficerMEDNAX

Stuart A. Miller 2

President, Chief Executive Officer and DirectorLennar Corporation

Joshua W. Moore

Judi Prokop Newman

Jorge M. PerezFounder, Chairman and Chief Executive OfficerThe Related Group

Aaron S. Podhurst 1

Senior PartnerPodhurst Orseck, P.A.

Matthew E. RubelChairman, Chief Executive Officer and PresidentCollective Brands, Inc.

Steven J. Saiontz 1

Eduardo M. Sardiña

Maria Lamas ShojaeeChief Executive Officer Shoma Group

Laurie S. Silvers, Esq. 1

PresidentHollywood Media Corp.

H. T. Smith Jr., Esq. 1

H. T. Smith, P.A.

Steven Sonberg, Esq.Managing PartnerHolland & Knight, L.L.P.

E. Roe Stamps, IV 1

Founding Managing PartnerSummit Partners

Bruce E. TollVice ChairmanToll Brothers, Inc.

Patricia W. Toppel General PartnerToppel Partners

Barbara A. Weintraub

EX OFFICIO MEMBERSPatrick K. BarronPresident, Alumni AssociationFirst Vice President and Chief Operating OfficerFederal Reserve Bank of Atlanta

Dany Garcia 1, 3

President-elect, Alumni AssociationChairwoman, White Buffalo Media

Fredric A. Hoffman, Esq.Immediate Past PresidentCitizens BoardCohen, Chase, Hoffman & Schimmel, P.A.

Peggy M. HollanderPresident, Citizens BoardManaging Partner The Succession Group

Jacqueline F. Nespral Immediate Past President, Alumni AssociationAnchorWTVJ – NBC6

Donna E. Shalala 1, 2, 3, 4

PresidentUniversity of Miami

EMERITI MEMBERSBernyce Adler Executive Vice ChairmanAdler Group, Inc.

Paul L. CejasChairman and Chief Executive OfficerPLC Investments, Inc.

Victor E. ClarkePresident and Chief Executive OfficerGables Engineering, Inc.

Edward W. Easton Chairman and Chief Executive OfficerThe Easton Group

Gloria EstefanEstefan Enterprises, Inc.

Peter T. FaySenior United States Circuit JudgeUnited States Court of Appeals, Eleventh Circuit

David I. FuenteBoard MemberOffice Depot, Inc.

Florence Hecht General Partner Flagler Greyhound TrackDirectorSouthwest Florida Enterprises, Inc.

Fredric G. Reynolds

Frank Scruggs, Esq.AttorneyBerger Singerman

Marilyn Segal

Robert H. SimmsPresident and Chief Executive OfficerBob Simms Associates, Inc.

Gonzalo F. Valdes-FauliChairman Broadspan Capital

Marta S. Weeks

Frances L. Wolfson

Charles J. Zwick

CORPORATE OFFICERSDonna E. ShalalaPresident

Thomas J. LeBlancExecutive Vice President and Provost

Pascal J. GoldschmidtSenior Vice President for Medical Affairs and Dean, Leonard M. Miller School of Medicine

Joseph NatoliSenior Vice President for Business and Finance and Chief Financial Officer

Sergio M. GonzalezSenior Vice President for University Advancement and External Affairs

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

Rudy FernandezVice President for Government Affairs

Larry D. MarbertVice President for Real Estate and Facilities

Jacqueline R. MenendezVice President for University Communications

Nerissa E. MorrisVice President for Human Resources and Affirmative Action

Paul M. OrehovecVice President for Enrollment Management and Continuing Studies

John R. ShipleyVice President of Finance and Treasurer

Aileen M. UgaldeVice President, General Counsel, and Secretary of the University

Patricia A. WhitelyVice President for Student Affairs

Aida Diaz-PiedraAssociate Vice President and Controller

Leslie Dellinger AceitunoAssistant Secretary

DEANSElizabeth Plater-ZyberkSchool of Architecture

Leonidas BachasCollege of Arts and Sciences

Barbara E. KahnSchool of Business Administration

Sam L GroggSchool of Communication

Isaac PrilleltenskySchool of Education

James M. TienCollege of Engineering

Terri A. ScanduraGraduate School

Patricia D. WhiteSchool of Law

William D. WalkerUniversity Libraries

Roni AvissarRosenstiel School of Marine and Atmospheric Science

Pascal J. GoldschmidtLeonard M. Miller School of Medicine

Shelton G. BergPhillip and Patricia Frost School of Music

Nilda P. PeragalloSchool of Nursing and Health Studies

William Scott GreenUndergraduate Education

University of Miami Board of Trustees and Administration

*As of September 13, 2010

Members of board committees authorized to conduct business and financial affairs of the University:1 Member of Executive Committee2 Member of Finance Committee3 Member of Audit and Compliance Committee4 Member of Trustee Service Committee

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

An Equal Opportunity/Aff irmative Act ion Employer

UNIVERSITY COMMUNICATIONS 09-254