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MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
Friday, May 5, 1995
SUBJECT INDEX
Subject Index Pages
Approval of Minutes 1
REPORT OF THE PRESIDENT OF THE BOARD
Report of the Vice Chair of Trustees of the UW Hospital and Clinics 1-2
Report on Legislative Matters 2
Report on the Higher Educational Aids Board Meeting of April 28, 1995 2-3
Additional Items:
Expression of Gratitude to UW-Extension 3
Resolution of Appreciation: Dr. Adolf Gundersen 3-4
Resolution of Appreciation: Joshua Tregoning 4-5
REPORT OF THE PRESIDENT OF THE SYSTEM
Presentation: "The Statewide Mission of the UW-Medical School
Meeting the Health Needs of Wisconsin" by Interim Dean of the UW-Madison
Medical School, Philip M. Farrell 6-7
Additional Item:
Overview of the Class of '95 7-8
Gift of John and Muriel Lange to UW Center at Baraboo 8
UW-Eau Claire' Open Classroom Program, May 1-5, 1995 8
REPORT OF THE BUSINESS AND FINANCE COMMITTEE
Approval of Consent Agenda Items
Virginia Cassidy Bequest 8-9
1995-96 Budget Allocation Decision Rules 9
1995-96 General Compensation Distribution Plan and Guidelines 9-12
University of Wisconsin Medical Foundation 12
Agreement with private profit-making organization -
Janssen Pharmaceutica, Inc. 13
1995-96 Annual Budget 13
Internal Benchmarking of Selected Activities 13
Report on Security protection on UW phone and computer systems 13-14
Trust Funds
Revised Investment Objectives and Guidelines - Trust Funds 14
Endowment Update 14
Report of the Vice President
Insurance Coverage for professional football summer training camps 14
Gifts and Grants 15
Audit Subcommittee
1995-96 Internal Audit Schedule 15
REPORT OF THE EDUCATION COMMITTEE
Approval of Consent Agenda Items
Revisions to UW-Stevens Point Faculty Personnel Policies and Procedures 16
Authorization to Recruit: Associate Dean for Research, Medical School
UW-Madison 16
John Bascom Professorship: UW-Madison 16
John Bascom Professorship: UW-Madison 16
Vilas Professorship: UW-Madison 16
Vilas Professorship: UW-Madison 16-17
Report of the Senior Vice President for Academic Affairs
Occasional Research Briefs "Access Update" and "The New Undergraduate
Class - Fall 1994" 17
Announcement of proffer from the Trustees of the William F.
Vilas Trust Estate 17
Report on status of Soils Science program, UW-River Falls 18
Additional Items
Distance Education Programs - UW-Platteville and UW-Stout
18
UW-Whitewater Fraternity Receives Award 18
UW-River Falls Grant 18
Motorola University Visit 18-19
UWS-17 (revised) 19-20
Improving undergraduate education: Providing a coherent and
substantive General Education program
Report on General Education, UW-Madison 20
Presentation on the meaning of the general education component
of a baccalaureate degree 20-21
Panel Discussion: Future Directions in General Education 21-22
UW-System Regent Policy: Chancellor Search and Screen Committees 22-23
REPORT OF THE PHYSICAL PLANNING AND DEVELOPMENT COMMITTEE
Approval of Consent Agenda Items:
UW-Eau Claire: Approval to Name Room in Schneider Social Science Hall 23
UW-Oshkosh: Authority to construct a Halsey Science Center Biology
Autoclave Replacement Project 23
UW-Stout: Authority to construct a Library Learning Center
Remodeling Project 23-24
UW-Stout: Authority to construct a Johnson Fieldhouse Storage Addition
project 24
UW-Superior: Authority to construct a Parking Lot 11 Addition project 24
UW-Madison: Approval of Design Report and authority to construct
Materials Science and Engineering Building Remodeling Project 24-25
Report of the Vice President for Physical Planning and Development Committee
Annual Informational Report on Facility Related 1995 Budgets of Cities
and Counties on behalf of the UW Centers 25
Additional items 25
CLOSED SESSION ACTION
UW-Madison: Appointment of Vice Chancellor 26-27
UW-Green Bay: Appointment of Vice Chancellor 27
UW-Milwaukee: Authorization to offer a salary that exceeds the Executive
Salary Group Six Maximum 27
Waiver of Employment Condition
27
UW-Madison: Authorization to offer a salary that exceeds the Executive
Salary Group Six Maximum 27
MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
Held in Room 1820 Van Hise Hall
Friday, May 5, 1995
9:00 a.m.
- President Grebe presiding -
PRESENT: Regents Barry, Budzinski, Gelatt, Grebe, Gundersen, Hempel, Krutsch,
Lubar, MacNeil, Orr, Randall, Schilling, Steil and Tregoning
ABSENT: Regent Benson, Dreyfus and James
Approval of Minutes
Upon motion by Regent Gundersen, seconded by Regent Krutsch, minutes of
the meeting of the Board of Regents held on April 7, 1995, were unanimously
approved as distributed.
- - -
REPORT OF THE PRESIDENT OF THE BOARD
Report of the Chair of the Council of Trustees of the UW Hospital and
Clinics
The report began with Regent Orr's oral report on the Council of Trustees
of the University of Wisconsin Hospital and Clinics. He noted that, based on
the report of the superintendent, the hospital continues to be financially
viable. The length of stay continues to decrease; ambulatory care continues
to grow; patient outpatient days are shrinking; ambulatory care and outpatient
surgery are both increasing. The proposed amendment to the Public Authority
legislation was discussed, and Regent Orr observed that it enhances the
prospect of having the authority approved, which is essential if the
institution is to compete effectively in its markets. Noting that the
hospital provides significant financial support for schools which fulfill
educational and research missions, he pointed out that the state is not in a
position to provide those monies should the hospital become unable to do to
so.
The Board of Trustees also approved organization bylaws for the Organ
Procurement Organization (per national requirements); reviewed medical staff
appointments for insurance purposes; and heard a report on the family practice
group. At the conclusion of Regent Orr's report, Regent Gundersen noted that
the success of the organ transplant program is related to the successful
resolution of organ distribution in the state; he emphasized the need to move
forward with the issue of the sixth department chair; and he observed that
adequate facilities are also a necessity. Regent Lubar inquired about the
transplant issues, and was informed by Regent Orr that the question is still
under consideration by the expert group. Regent Krutsch noted that the
Association of American Health Care had reported that UWHC's current financial
situation was all right, but that it would not continue without major
restructuring. Regent Orr added to this prediction with a comparison to
Minnesota, observing that UW's patient base is composed of fewer managed care
patients, which will change in the future.
-
Report on Legislative Matters
Regent Grebe stated that a number of Regents have been involved with
Legislative matters, and pointed to a report provided by Vice President Olien.
-
Report on the Higher Educational Aids Board Meeting of April 28, 1995
Regents Krutsch and MacNeil attended the April 28 meeting of the Higher
Education Boards and provided a report to the Regents. Regent Krutsch,
referring to the report, noted that the Joint Finance Committee expressed
interest in statutory change transferring Wisconsin Higher Education grant
appropriation and administrative authority to the University of Wisconsin
System and Wisconsin Technical College System. If this transfer takes place,
the University of Wisconsin System would receive about 57% of the WHEG
appropriation and the Wisconsin Technical College System about 43% based on
current distribution of award dollars between the two systems. She expressed
her support of this proposed transfer, noting that the different missions and
student populations supported separation in the program.
Regent Gelatt agreed, and reminded the Board that it had asked the
Governor to ensure that the increases in WHEG grants to the university
students and technical college students would match the projected tuition
increases. At that time there was also a technical change in the federal
method of defining the need of students, which resulted in a decrease in
actual grants to UW students, although the WHEG appropriation increased by 7%.
He concluded by observing that the reduced ability to affect the grants to UW
students makes this change desirable from the university perspective.
President Lyall added that, under the Governor's budget proposal, HEAB
would be dissolved; another consideration is that the dissolution of HEAB
would cast doubt upon the Board's ability to influence future financial aid
policy.
-
Additional items
Expression of Gratitude to UW-Extension
On behalf of the Board of Regents, Regent Grebe thanked Chancellor Hanna
and his colleagues for including them at the annual UW-Extention awards
banquet, noting that it was not only enjoyable but it was also an opportunity
to learn more about the work done at Extension.
_
Resolution of Appreciation: Dr. Adolf Gundersen
Regent Grebe concluded his report by noting that three members of the
Board of Regents are close to completing their terms; he called on Regent
Gelatt to introduce Resolution 6918, which was seconded by Regent Barry and
was adopted with a show of applause.
Resolution 6918: Whereas, Adolf Gundersen has completed a seven-year
term of meritorious service as a member of the Board
of Regents of the University of Wisconsin System; and
Whereas, he brought to the Board a deep commitment to
the welfare of the UW System and its students, as well
as his knowledge and experience as the President of
the Gundersen Clinic and Chairman of the Board of the
Gundersen Medical Foundation; and
Whereas, he has provided leadership and served with
dedication as Chair and Vice Chair of the Physical
Planning and Development Committee and as Vice Chair
of the Council of Trustees of the UW Hospital and
Clinics; and
Whereas, among his priorities as a Board member have
been strong support for restructuring of the UW
Hospital and Clinics to compete effectively in the
health care marketplace, improvements in the physical
planning process and campus safety procedures, and
increased management flexibility for the UW System;
and
Whereas, his style has demonstrated the effectiveness
of both the strong public statement and the carefully
phrased question; and
Whereas, the great amount of time and effort he has
unselfishly devoted to Regent duties is in the finest
tradition of citizen public service and university
governance;
Now, therefore, be it resolved that the Board of
Regents of the University of Wisconsin System hereby
commends Dr. Adolf Gundersen for the substantial
service he has rendered to the UW System and the State
of Wisconsin; and
Be it further resolved that, with appreciation for the
many contributions he has made during his tenure as a
Regent, the Board of Regents hereby grants to Adolf
Gundersen the status and title of Regent Emeritus.
Regent Gundersen was presented with a plaque, which he accepted, noting
that he has enjoyed working with the Board of Regents and complimented their
devotion to the UW System and stressed that their stewardship must continue.
He also noted his appreciation for the Chancellors, crediting them as the keys
to the success of the UW System; wished that the media would report more in
terms of what is accomplished; and acknowledged the contributions of staff.
He expressed his concern for the current budget process and its impact on the
UW System, urging that the Board of Regents be given authority to determine
where cuts are made. He also observed that there are flaws in the
communication between the Board of Regents and the Executive and Legislative
branches of the Wisconsin State Government. Regent Gunderson concluded his
remarks by thanking Governor Thompson for the opportunity to serve on the
Board of Regents, which, "opened up an entire new world for me...a world of
education, in which I think I gained more perhaps than I gave."
-
Resolution of Appreciation: Joshua Tregoning
Regent Grebe presented Resolution 6919, which was adopted unanimously
with a show of applause.
Resolution 6919: Whereas, Joshua Tregoning is completing a two-year
term as student member of the Board of Regents of the
University of Wisconsin System, performing this
challenging role in a highly conscientious manner and
devoting a great deal of time and effort to his duties
as a Regent; and
Whereas, his experience as a student leader at the
University of Wisconsin-Whitewater, including that of
speaker of the Student Senate, has lent a valuable
perspective to the Board; and
Whereas, he has served as Vice-Chair of the Education
Committee of the Board of Regents, the first student
Regent named to a committee leadership position; and
Whereas, he has diligently sought student input on
matters before the Board and has met often with
students from across the UW System to hear and discuss
their views; and
Whereas, all of these efforts have been rooted in his
personal dedication to work for improved educational
opportunities for all UW students;
Therefore, be it resolved that the Board of Regents of
the University of Wisconsin System hereby commends and
expresses appreciation to Joshua Tregoning for the
dedicated service he has rendered as a member of this
Board; and
Be it further resolved that the Board of Regents
grants to Joshua Tregoning, upon his retirement from
the Board, the title of Regent Emeritus and wishes him
well in all future endeavors.
Regent Tregoning was presented with a plaque, which he accepted,
expressing both his pleasure for having been able to serve on the Board of
Regents as well as his desire to return to the Board in the future. He spoke
warmly of the dedication to the UW System that he has observed among the
Chancellors, Regents, UW System Administration and staff, and thanked
everyone, noting that his colleagues had, during the course of his term,
become friends.
_ _ _
REPORT OF THE PRESIDENT OF THE SYSTEM
President Lyall began her report by offering her appreciation to Dr.
Gundersen for his years of faithful stewardship, noting that during his years
on the Board, Dr. Gundersen has helped to make the UW campuses more beautiful
and safe environments for students and faculty. She also expressed her
special appreciation for his insistence on academic excellence and his public
praise of those who are doing such exceptional work for UW students and for
patients. Offering her congratulations to Regent Tregoning for his upcoming
graduation, she cited him as an exemplifying the best of Wisconsin students in
the class of 1995, having brought student perspectives to the Board and
improved communication between the UW System and the students it serves.
-
Presentation: "The Statewide Mission of the UW-Medical School Meeting
the Health Needs of Wisconsin" by Interim Dean of the UW-Madison Medical
School, Philip M. Farrell
President Lyall introduced Philip M. Farrell, acting Dean of the
University of Wisconsin Medical School, who made a presentation on changes in
the Medical School Curriculum which mark a transition to early, hands-on
experience for medical students and service to the community.
Dr. Farrell, Interim Dean of UW-Madison's Medical School, informed the
Board of Regents that the Medical School was established as an institution
committed to the "Wisconsin Idea" by President Charles Van Hise at the
beginning of this century. As the School approaches its 90th anniversary and
readies itself for the 21st Century, it has engaged in a year-long strategic
planning process to explore ways to reinvigorate its original mission. He
provided the following examples of the School's "comprehensive excellence" in
the areas of education, research, patient care, and public service:
Education: With a National Institute of Health (NIH) grant, the School
has thoroughly revised its general physician partnership curriculum, to
encourage medical students to work with primary care physicians. The UW
is one of only five schools in the nation to receive federal funds to
develop this program, whose intent is to inspire more students to enter
primary care practice. Another example of the Medical School's
curriculum changes are the creation of more interdepartmental,
collaborative courses like the Neuroscience course, which draws upon the
knowledge and skills of 30 faculty from 6 departments.
Research: the Wisconsin Network for Health Policy Research is designed
to
build a statewide community of health policy researchers who will take a
more global view of the delivery of health care to Wisconsin residents,
and raise important public policy issues.
Patient Care: the convergence of basic and clinical science researchers
have fostered an explosion of research activities in many areas--gene
therapy, aging, immunology, cancer, transplantation, and pain control--
which have resulted in better prevention guidance and patient care.
Service: with a $7 million NIH grant, the ophthalmology department is
engaged in some local, population-based epidemiologic studies, which will
lead to better treatment and prevention of cataracts.
Dean Farrell concluded the presentation by stating that the Medical
School's reputation as a leading research institution is borne out by the fact
that it receives about $90 million (30% of all the extramural funds that
support UW-Madison research activities).
Project Leader Professor Stein provided Regent Lubar with further
information on his longitudinal research on the relationships between diet,
vitamins (zinc), and cataracts.
Regent Gundersen complimented the School on its ambitious long-range
planning efforts. Responding to a question from Regent Orr, Dean Farrell
explained how the Faculty Group Practice plan can strengthen the School by
integrating academic incentives, teaching, and practice. To Regent
Schilling's question about the average salary of a UW Medical School doctor,
Dean Farrell said that while their salaries range from $175,000 to $200,000,
with a clinical practice plan supplement, the physicians contribute much back
to the UW.
-
Additional items that the President of the System may report or present
to the Board
Overview of the Class of '95
President Lyall provided an overview of the Class of '95: In 1990 and 91,
two-thirds of Wisconsin's high school seniors (31%) who had applied and were
accepted, enrolled in a UW System institution. These 23, 672 students formed
the smallest and best qualified freshman class in UW System history and were
the first beneficiaries of an enrollment management policy that assured them
access to courses, computer workstations, and library seats that had been
overcrowded only a few years before. She noted that four years ago, the
Persian Gulf War was fought and won; South Africa began repealing apartheid
laws; the Twins won the pennant; and the Dow Jones Industrial Average closed
at 2941, compared to the recent record of 4300. She opined that the only
better investment over those four years had been the time, money and effort
invested in the education of that freshmen class, who, according to the Census
Bureau, will increase their lifetime earnings by 73% as a result of having a
baccalaureate degree. She then quoted Joseph O'Donnell, who said, "If a man
empties his purse into his head, no man can take it away from him, for an
investment in knowledge pays the best interest."
President Lyall also recognized that the Class of '95 has changed the
University in some very important ways: they pushed the UW System to upgrade
computer access and adopt new learning technologies; they requested
improvements in the advising process and in preparation for living and working
in a multicultural society; and they reminded us that they learn both inside
and outside the classroom, emphasizing the need for internships, work study
opportunities, independent research project, volunteer projects, and similar
experiences in addition to formal classroom instruction.
The University has also responded to other pressures, resulting in the
widespread introduction of information technology at all UW System
institutions, allowing the class of '95 to be the first graduating class to
take a variety of technology for granted: Electronic mail, internet and world
wide web access, gopher servers, computerized library catalogs; touch tone
telephone registration; the degree audit reporting system for on-line access
to academic records; and the transfer information system. The physical
environment of the UW System campuses has also changed as buildings were
added, expanded or remodeled; paths and walkways became better lighted and
more accessible. Finally, administrative costs have been reduced so that UW
students spend $800 less per student for administrative costs than their peers
at other schools.
The Class of '95 has performed exceptionally in intercollegiate
athletics, and has benefitted from changes in the curriculum which reflect
changing student and societal demands. Fourteen new programs reflect the
growth of knowledge in manufacturing engineering, biotechnology, American
Indian nursing, archaeology, etc. UW-Madison has adopted new core requirements
for undergraduates; UW-Eau Claire has redefined the baccalaureate degree; UW-
LaCrosse has adopted a new general education program, and similar changes are
occurring in the curriculum at other UW institutions. President Lyall
concluded her overview of the Class of '95 by observing that they are well
equipped to compete in a competitive future.
-
Gift of John and Muriel Lange to UW Center at Baraboo
President Lyall remarked that the UW Centers provide exceptional
educational value for residents of smaller communities throughout the state.
She announced that a symbol of local support for the Centers could be found in
the $4 million gift from John and Muriel Lange to the UW Center at Baraboo for
the construction of an on-campus gymnasium that will serve both students and
the community.
-
UW Eau Claire's Open Classroom Program, May 1 - 5, 1995
President Lyall concluded her remarks by noting that the UW-Eau Claire
faculty opened their classrooms to the public as part of a week-long
celebration of teaching and the institution's redefinition of the
Baccalaureate Degree. Members of the public were encouraged to visit classes
to see how new teaching technologies change learning for students and teaching
for faculty.
- - -
REPORT OF THE BUSINESS AND FINANCE COMMITTEE
Regent Gelatt, Chair, presented the report of the Business and Finance
Committee, and began with the presentation of Resolutions 6920 - 6924, which
had been passed unanimously by the Business and Finance Committee. The
Resolutions were seconded by Regent Gundersen, and passed unanimously.
Virginia Cassidy Bequest
Resolution 6920: That upon the recommendation of the President of the
University of Wisconsin System and the Chancellor of
the University of Wisconsin-Madison, the bequest of
the late Virginia Cassidy of the Town of Dodgeville,
Iowa County, Wisconsin, be accepted; and that the
Trust Officer or Assistant Trust Officers be
authorized to sign receipts and do all things
necessary to effect the transfer for the benefit of
the University of Wisconsin, Research Division,
College of Agriculture and Life Sciences, and the
University of Wisconsin Medical School.
(The Trust states under ARTICLE 6:
3. Upon my death, the residue of my trust estate,
subject to the payment of taxes as aforesaid, shall be
distributed as follows:
b) 2/9 of all the rest and residue I give to the
University of Wisconsin, Research Division, College of
Agriculture and Life Sciences, for agricultural
research.
c) 2/9 of all the rest and residue I give to the
University of Wisconsin Medical School, to be used as
the directors of the Medical School shall determine.
The total amount of the bequest is anticipated to be
$440,000.)
1995-96 Budget Allocation Decision Rules
Resolution 6921: That, upon recommendation of the President of the
University of Wisconsin System, the Board of Regents
approves the 1995-96 annual budget allocation decision
rules.
1995-96 General Compensation Distribution Plan and Guidelines
Resolution 6922: That upon the recommendation of the President of the
University of Wisconsin System, the 1995-96 General
Distribution Plan and Guidelines for unclassified
staff be approved as follows:
(1) The 1995-96 compensation adjustments for faculty and
academic staff shall be provided such that not less
than one-third of total compensation shall be
distributed on the basis of merit/market and not less
than one-third of the total compensation plan shall be
distributed on the basis of solid performance.
(2) Unless otherwise specified by executive/legislative
action, the effective dates for the payment of the
1995-96 pay plan rates will be July 1, 1995 for annual
basis employees, the start of the academic year pay
period for those on academic year appointments, and
other dates as set by the Chancellors for persons with
appointment periods commencing at times other than
July 1 and the beginning of the academic year.
(3) Compensation adjustment allocations shall be
distributed to the institutions at the same level of
percentage increase authorized by the budget, as soon
as possible after executive/legislative action and in
conformity with state law and policy, and System
policy.
(4) Unless otherwise provided by law, systemwide salary
minima and maxima for faculty and academic staff will
be adjusted in accordance with the state pay plan. If
the Regent's meeting schedule does not afford an
opportunity for timely action in this regard, the
Board authorizes the Executive Committee, after
consultation with the System President, to act on
these matters.
Merit/market determinations for faculty should be
based on a systematic performance evaluation program
which identifies positive contributions by the faculty
member to teaching, research, public service and/or
the support functions inherent in the institution's
mission. Assessment of teaching faculty shall include
consideration of student evaluations (Regent Policy
Document 74-13, October 4, 1974).
Merit/market determinations for academic, limited and
other unclassified staff shall be based on a
systematic performance evaluation program which allows
supervisory assessment of meritorious performance in
their areas of assigned responsibility.
Solid performance adjustments shall be provided to
those faculty and academic staff who have demonstrated
satisfactory performance.
(5) Each institution shall complete its suitable
evaluation system process for continuing unclassified
staff prior to July 1 and establish factors, including
discipline considerations, for each person which can
be applied expeditiously to determine salary increases
among individuals, given later information on state
compensation policies for faculty and academic staff
for 1995-96.
(6) Each institution will be required to present its plans
for distribution of the compensation adjustments for
approval by System Administration before
implementation can be accomplished.
(7) Each institution shall complete its actions on stipend
schedules for nonrepresented graduate assistants prior
to July 1 and shall establish a factor for adjustments
which can be applied expeditiously to determine
stipend increases. Stipend schedules for each
graduate assistant category shall be separately
established.
(8) Salary adjustments for promotions in faculty rank
shall, on an academic year equivalent basis, be no
less than $500 for promotion to assistant professor,
$750 for promotion to associate professor, and $1,000
for promotion to professor. Institutions may set
policies on adjustments for promotions, including
amounts for promotions of faculty on annual basis
appointments, consistent with these minima.
(9) The Board affirms the delegated authority of the
President of the System and the Chancellors to
establish individual salaries at or below the Group 6
maximum of the State Executive Pay Plan for 1995-96
within state policy and the funds appropriated for
that year, with appropriate annual budget
documentation to be reported to the Regents for
information.
(10) The Board directs that any mandated pay plan
adjustments applied to individuals in the State
Executive Pay Plan and others above the Group 6
maximum shall be effective on the dates determined in
the executive/legislative review. If the Regents'
meeting schedule does not afford an opportunity for
timely action on any discretionary pay adjustments for
these individuals by the full Board, the Board
authorizes the Executive Committee of the Board, in
consultation with the System President, to approve any
discretionary salary adjustments effective for
1995-96. Appropriate information shall be provided to
all members of the Board.
(11) Compensation actions related to the unclassified pay
plan and delegated to the Chancellors at or below 75%
of the Group 6 maximum shall be completed in
accordance with statutory requirements, legislative
intent and Regents' policy and shall be reported to
the President of the System by August 1, or within
three weeks after the approval of the unclassified
compensation plan, whichever is later, to make
possible the preparation of payrolls and reporting to
the Board of Regents.
If changes are required to these guidelines as a
result of actions by either the Joint Committee on
Employment Relations or legislation, the Executive
Committee, in consultation with the System President,
is authorized to act to modify the guidelines to be
consistent with those actions.
University of Wisconsin Medical Foundation
Resolution 6923: That, upon the recommendation of the Chancellor of the
University of Wisconsin-Madison and the President of
the University of Wisconsin System, and the requisite
vote of the UW Medical School clinical faculty, the
University of Wisconsin Medical Foundation be
recognized as the new entity through which the UW
Medical School clinical faculty and other health care
specialists will support their clinical care
activities; the Board of Regents enter into the
Agreement with the University of Wisconsin Medical
Foundation as of May 8, 1995, which Agreement will
govern the relationship between the Medical Foundation
and the Board and which is attached hereto and made a
part hereof by reference; and the Chancellor of the
University of Wisconsin-Madison be directed to execute
the Agreement on behalf of the Board of Regents.
Further, that the Board recognizes that there will be
a transition period of approximately eight months
during which the current Clinical Practice Plan will
continue to operate while tax exempt status is sought
for the Medical Foundation from the Internal Revenue
Service and operational issues are resolved and that
full Medical Foundation operations are expected to
commence on or about January 1, 1996.
At the Busincess and Finance Committee meeting, Dr. Philip Farrell,
Interim Dean of the UW Medical School, noted that the purpose of the UW
Medical Foundation (approved in Resolution 6923) is to consolidate the
fourteen current clinical practice plans into a single plan; support the
Medical School; and enhance their tradition of faculty governance. Regent Orr
complimented Chancellor Ward and Dean Farrell and indicated that the
consolidation of 14 partnerships into one organization is a key to the
University's ability to compete in the medical area in the future.
-
Agreement with private profit-making organization - Janssen
Pharmaceutica, Inc.
Resolution 6924: That upon recommendation of the President of the
University of Wisconsin System and the Chancellor of
the University of Wisconsin-Madison, the Board of
Regents accepts the agreement with Janssen
Pharmaceutica, Inc. entitled, "Ritanserin in the
Treatment of Alcohol Dependence, A Double Blind,
Placebo Controlled Phase II Study."
-
1995-96 Annual Budget
1995-96 Annual Budget Management Conditions were reported to the
Committee.
-
Internal Benchmarking of Selected Activities
Regent Gelatt reported that Vice President Marnocha presented a report
which followed up one presented in February. The report profiled four of the
UW System institutions, showing their 1994-95 GPR/Fee budget by activity; a
further budget breakdown was provided for three activities in which particular
interest had been noted: academic support, student services and institutional
support. The campuses have met recently to improve the uniformity of
reporting of these breakdowns.
The Committee was joined by Chancellor Perkins of UW-Green Bay,
Chancellor Sorensen of UW-Stout, Chancellor Greenhill of UW-Whitewater and
Vice Chancellor Torphy of UW-Madison who discussed making resource allocation
decisions and methods used to ensure the efficient, effective and low-cost
provision of necessary administrative services consistent with a high quality,
customer-driven focus. They also addressed how institutional and programmatic
differences affect activity and subactivity budgets, and how they allocate
institutional resources and ensure costs are controlled. They also noted that
extremely close examination reflects differences in campus structure rather
than differences in the cost of providing particular services. Regents
commented that the focus on administrative efficiency is likely to continue
and inquired about how to give chancellors better tools to use in their
restructuring efforts.
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Report on Security protection on UW phone and computer systems
Regent Gelatt stated that David Lois, Special Assistant, Office of
Learning and Information Technology at UW System, and Craig McComb, Assistant
Director Information Technology at UW-Madison, presented a report on UW phone
systems and computer security protection. Mr. Lois noted that, although no
computer network can ever be 100% secure, UW System believes its computer
networks are appropriately secure from fraud and intrusion. Mr. McComb stated
that the UW-Madison relies heavily on Ameritech automated systems to control
unusual use of telephones; problems are usually of an administrative rather
than technological nature.
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Trust Funds
Revised Investment Objectives and Guidelines - Trust Funds
Following a discussion at the Committee's meeting on April 6, 1995, a
subcommittee was formed to further study investment guidelines, and it has met
twice to refine the guidelines. At the May 4, 1995 meeting, Regent Hempel
expressed concerns that will be addressed by the subcommittee prior to the
June meeting when the revised guidelines would be submitted for approval.
Regents expressed the need to be able to monitor the portfolio and questioned
whether they could meet the requirements of the guidelines to provide that
monitoring capability. Regent Gelatt also reported that the Committee would
meet with the investment advisers about the proposed guidelines on May 5,
1995.
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Endowment Update
David Konshak, Assistant Trust Officer, provided the Business and Finance
Committee with the Endowment update. As of June 30, 1994, the market value of
the Endowment was $149 million dollars, with 63% in equity and 37% in fixed
income; over five years it has grown by 62%, and last year's 5.8% return
exceeded the NACUBO median for endowments of that size. Long-term UW
endowment lags the NACUBO median in three year, five year and ten year
measurements; however, the three year measurement was close to median,
representing an improvement over past practice.
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Report of the Vice President
Insurance Coverage for professional football summer training camps
Vice President Marnocha reported that the insurance requirements for the
professional football training camps were reviewed, following discussion at
the April Committee meeting. All four institutions have contacted the team
they are contracted with about increasing the umbrella coverage from $2
million to $10 million, and in all four instances, the teams have agreed to
amend their contract to provide the requested coverage.
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Gifts and Grants
Vice President Marnocha also reported to the Committee that total gifts,
grants and contracts for the eleven-month period ending April 14, 1995, were
$504 million, an increase of $59.1 million over the previous year. Federal
awards increased by $41 million, while non-Federal awards increased by 18
million.
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Audit Subcommittee
Regent Gelatt reported that the Business and Finance Committee adjourned
at 3:10 p.m., and Subcommittee Chair Hempel called the Audit Subcommittee to
order.
1995-96 Internal Audit Schedule
Vice President Marnocha reported on 1994-95 completed audits and
presented the 1995-96 Internal Audit schedule. The audits have been
prioritized as Priority One and Two. Priority One audits have been performed
because of internal and external requirements or agreements; at times, special
audits may be requested which replace audits in the Priority One category.
Priority One audits have been further categorized into four groups: NCAA-
required athletic audits; required audit for the Corporation for Public
Broadcasting; audits of academic fee systems, per an agreement with the
Legislative Audit Bureau; and other audits. Proposed reductions in the
biennial budget have reduced the time available for audits from 3,100 days a
year to 2,600 days a year--a loss of two positions.
Regent Gelatt concluded his report by stating that Vice President
Marnocha had noted that in the restructuring of System Administration,
consideration is being given to changing the emphasis of the Internal Audit
Department, from a focus on financial audits to program audits. Such a change
would require each campus to take more responsibility for financial audits now
p
