TRUSTEES ACCEPT AUDIT REPORT, APPROVE CONSTRUCTION ITEMS

   COLUMBUS -- The Ohio State University Board of Trustees on Friday (11/5) accepted the audit of Ohio State's financial statements for 1998-99, authorized the hiring of engineers and architects for construction projects, and heard an endowment report. The board also adopted a new policy concerning the university's art collection and conducted other business.

Trustees accept auditor's annual financial report

   Trustees voted to accept the audit of university financial statements conducted by Deloitte and Touche LLP. The accounting firm examined the university's accounts and records for fiscal year 1998-99, found them to be in satisfactory condition and issued an unqualified audit opinion.

   Greta Russell, university controller, told trustees that Ohio State's overall financial condition is stable. The report showed that, for the year ending June 30, the university had revenues of $2.1 billion and expenditures of $1.9 billion, excluding capital expenditures and principal payments on long- term debt. The university had assets worth $4.7 billion, an equity balance of $4 billion and long-term debt of $309 million.

   Russell said revenue trends underscore the growing importance of private support in the university's revenue mix. In contrast with total state support, which grew 10 percent during the 1997-99 biennium, total private support increased by more than 21 percent during the same two-year period and now accounts for more than 11 percent of total university revenues.

   Of the $1.16 billion for education and general expenses for the year -- a 4.8 percent increase over the previous year -- 41 percent was spent on instruction, 18 percent on research, 8 percent on public service, 8 percent on academic support, 7 percent on scholarships and fellowships, and 4 percent on student services. The remaining 14 percent was spent on other support costs and mandatory transfers.

   Over the past year, Ohio State has resolved a lengthy IRS audit and moved to improve the efficiency and accuracy of its cost accounting. In the coming year, the university's top priority will be implementing the new general ledger system.

Trustees approve construction work

   Trustees authorized the university to hire architects and engineering firms and to seek construction bids for three campus projects.

   Designers will be hired and bids sought to finish previously unassigned space in the northeast basement of the new Heart and Lung Institute for use in the University Laboratory Animal Resource program. Funding for the $1.12 million project will be provided by a National Institutes of Health grant ($559,137), Board of Regents grant ($279,568) and the College of Medicine and Public Health ($279,568).

   A Pomerene Hall renovation project will provide more space for the Office of Disability Services, and screening room space for the School of Physical Activity and Educational Services. The state will fund the $547,906 project.

   The board also authorized a request for bids for a Health Sciences plan to build a park bounded by Dodd Hall, McCampbell Hall, University Hospitals Clinic and the School of Allied Medical Professions. The Spirit of Women Park will be dedicated to women and their important contributions. Trustees initially approved the project in February; the project's revised cost has risen to $1.2 million, with funding provided by University Hospitals.

Board hears reports on endowment, bonds

   University Treasurer James L. Nichols updated trustees on the university's endowment, which has reached an all-time high. As of Oct. 31, the endowment had reached $1.09 billion. Nichols told trustees that the endowment was made up of 2,737 individual funds as of Sept. 30. An estimated $44.6 million will be distributed this fiscal year to the individual academic departments and colleges.

   Nichols also reported that the university will issue new bonds in the amount of $170 million and will re-fund $25 million in bonds from 1986. Among the projects the bonds will support are the Ohio Stadium renovation project, the College of Business, infrastructure improvements, a parking garage, and remodeling of residence and dining halls.

Wexner Center collections policy approved

   Trustees adopted a policy to govern the university's permanent collection of art works. The policy, which was modeled on one approved by the Wexner Center Foundation Board of Trustees on Oct. 19, governs decisions regarding the acquisition, sale and loan of art works in the permanent collection.

   There was no clearly defined policy regulating the university collection's growth prior to 1989, when the Wexner Center assumed possession and stewardship of the University Gallery of Fine Arts' permanent collection. The policy was developed by the Wexner Center in accordance with professional practices established by the Association of Art Museum Directors and is consistent with the Wexner Center's ethics policy.

   "This is standard practice in the museum field and the university's adoption is something of a formality," said Sherri Geldin, director of the Wexner Center. "We have a collections policy that governs our stewardship of OSU's collection. When this center opened, it in effect took over stewardship of the University Gallery's collection. As such, we abide by all of the standard industry practices for care of art. Because we're a part of OSU, this policy really needs to be adopted by the university's board as well as the Wexner's board."

   While the policy governs transactions pertaining to the Wexner Center collection, the intention is that it will become a model for other arts-related collections and archives at the university. Among those collections are the holdings of the Lawrence and Lee Theatre Research Institute; the Cartoon, Graphic and Photographic Arts Research Library; and the Historic Costume and Textiles Collection.

Miscellaneous business

   In other business, trustees:

   -- Authorized the sale and transfer of the University Hospitals East home care program for no less than $50,000 to the University Home Care Services Inc., an organization related to MedOhio Health Inc. Ohio State acquired the home care program when it purchased Park Medical Center. The consolidation of home care programs is expected to provide greater cost efficiencies and broaden access to the services for those served by the programs.

   -- Approved 206 contracts totaling $19.3 million for research projects funded in September.

   -- Granted competitive bid waivers for 90 purchases totaling $25.6 million for the period of July to September.

   -- Amended the bylaws of the Arthur G. James Cancer Hospital and Richard J. Solove Research Institute Board, increasing the number of general public citizen members from four to six.

Contacts:
Greta Russell, University Controller, (614) 292-6220
Jill Morelli, University Architect, (614) 292-4458
James Nichols, University Treasurer, (614) 292-4777
Sherri Geldin, Wexner Center, (614) 292-0330