october 25, 2012 2012 · in june 2010, including select commitments from lead donors received prior...

2012

Annual Report to the Board of Trusteeson the State of the University

John L. Anderson, PresidentOctober 25, 2012

SummaryAn

nual

Rep

ort t

o th

e Bo

ard

of T

rust

ees

on th

e St

ate

of th

e U

nive

rsity

Over the past year the university has achieved most of its goals and is working to set its

sights higher. The FY12 budget targets were met including continued overall net tuition

and enrollment growth, recruitment of new faculty in alignment with strategic objectives,

the funding of a merit pool salary increase for faculty and staff, and the partial funding of

depreciation ($4 million) for capital (facilities) renewal. This was achieved even though the

endowment distribution decreased (according to the board-approved formula) by 18 percent

and, for the first time in more than a decade, the excess endowment draw to fund operations

was eliminated. The university’s financial strength ratio, as calculated by the U.S. Department

of Education to establish eligibility for federal student loan programs, increased sufficiently to

release a letter of credit that partially secured those loan programs, freeing up about

$6 million in working capital.

Enrollments remained strong with 807 new undergraduate and 1,847 new graduate students.

In fall 2012 there are 2,610 full-time undergraduate students, the largest full-time enrollment

since 1983. We have entered a new era when about a third of the incoming undergraduate

students are transfer students; however, many of these transfers enroll in first-year courses,

and nearly all spend at least three years at IIT. Graduate enrollment dropped slightly but is

still very healthy, and our international student enrollment remains robust with 1,158 new

overseas students (65 percent of our new entering graduate students). First-to-second-

year retention for undergraduates again exceeded 90 percent, and the first-to-third year-

retention was 84 percent—best in our history. Most encouraging is the positive student

morale and active leadership by student government. The university continues to benefit

from contributions from outstanding student leaders, which is due in part to our unique

Leadership Academy.

With the exception of its part-time programs, Stuart School of Business moved to Main

Campus; this move has already resulted in more interdisciplinary initiatives between Stuart

School of Business and other units on campus. A world-renowned architect was hired to

be dean of our College of Architecture, 43 new faculty (17 on the tenure track) were hired,

and three endowed professorships were appointed to faculty members hired from outside

the university. An internationally preeminent center (Robert W. Galvin Center for Electricity

Illinois Institute of Technology

Office of the President 10 West 35th Street

Suite 1900 Chicago, IL 60616

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Innovation) was established, and research expenditures exceeded $42 million as federal

stimulus money dried up. Two new vice presidents were appointed to replace colleagues

who retired.

New academic programs include the Entrepreneurship Academy, with the Knapp

Entrepreneurship Center as the foundation, along with a robust curricular offering by Stuart

School of Business; full adoption of IPRO 2.0, which has standardized the teaching of the

two IPRO courses with more emphasis on teaming and communication skills; more than

20 co-terminal degrees were initiated; Armour College of Engineering reorganized its

undergraduate curriculum; and the Board of Trustees approved the formation of the new

Lewis College of Human Sciences and the College of Science.

Major investments in the physical plant include renovations of the 18th and 13th floors of

the Tower to accept the transition of Stuart School of Business to Main Campus; completion

of the 16th floor of the Tower for the Robert W. Galvin Center for Electricity Innovation;

and investment in the smart microgrid infrastructure of the university, the campus wireless

network, and student housing.

Alumni engagement continued to grow substantially, as evidenced by the number of alumni

events held and the attendance at these events. We also saw a substantial increase in

major donations from alumni who were previously non-donors or who donated at a very

small level. The fundraising campaign, which was formally begun with the private phase on

June 1, 2010, did well but did not quite reach its two-year goal. We are on track to reach the

appropriate level of fundraising progress to make the public announcement in February 2013.

The visibility of the university has been increased through efforts by both our Marketing

and Communications staff and our External/Community Affairs staff. Our marketing and

communications activities have been consolidated and better coordinated throughout

the university, and our Admission offices now use our M&C staff for their advertising and

outreach rather than outsourcing it. There were several high-profile appearances by elected

officials on campus—Mayor Emanuel gave two press conferences, and Governor Quinn gave




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2012




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one. On the academic side, highly recognized speakers were brought to campus, including

the president of Lehigh University, two U.S. Supreme Court justices, and members of the

National Academy of Engineering and Science. The president of IIT chaired the nominating

committee of the National Academy of Engineering, which among other tasks selected the

next president of NAE.

The figures and charts attached to this report provide more quantitative details of progress.

GOALS for FY13

■ Meet the FY13 operating budget target and develop an FY14 budget that continues

to improve and align operations with strategic objectives and incrementally grows the

partial funding of depreciation.

■ Further strengthen our liquidity and continue to preserve and build unrestricted

net assets.

■ Increase the visibility of IIT through marketing with measurable results.

■ Make significant progress in fundraising for the Innovation Center, and meet

campaign goals.

■ Increase enrollment of full-time undergraduate students to 2,750 in fall 2013 and

maintain graduate/professional enrollment.

■ Continue to hire excellent faculty.

■ Further integrate our educational programs in leadership, entrepreneurship, and IPRO.

2012




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2012

Figures

Figure 1. Total endowment distributions by year.

$0

$5

$10

$15

$20

$25

$30

FY10 FY11 FY12 FY13 Projection

Mill

ions

Base Distribution Excess Operating Distribution Campaign Distribution

$25.3

$1.8

$8.3

$15.2

$19.0

$2.5

$3.4

$13.1

$15.2

$13.0

$2.5

$10.5

$10.7

$2.5

$8.2




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0%

20%

40%

60%

80%

100%

FY10 FY11 FY12 FY13 Projection

Net Tuition and Fees

Grants and Contracts

Endowment Distribution

All Other

52%

20%

12%

16%

51%

23%

8%

18%

57%

21%

5%

17%

57%

21%

4%

18%

6%

21%

54%

Prop

orti

on o

f To

tal R

even

ue

2012

FiguresFigure 2. Total revenue (in $) with detail by major source.

Figure 3. Contributions to revenue (%) from various sources.

$0

$50

$100

$150

$200

$250

$300

FY10 FY11 FY12 FY13Projection

Mill

ions

$217

Net Tuition and FeesTotal Revenues

All Other

Grants and Contracts

Endowment Distribution

$239 $238$251




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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000St

uden

t H

eadc

ount

Fall 2009 Fall 2010 Fall 2011 Fall 2012

Year

Undergraduate Total Graduate Total University Total

2,665 2,602

5,172

2,712

5,075

2,801

4,9375,039

7,774 7,787 7,7387,704

FY10 FY11 FY12 FY13

UG Full-Time Undergraduate

2,000

2,500

3,000

2,610

2,4802,437

2,513

2012

FiguresFigure 4. Total fall undergraduate and graduate enrollment.

Figure 5. Full-time undergraduate enrollment.




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Fall 2009 Fall 2010 Fall 2011 Fall 2012

Total % of All International Students

37.9%40.2%

42.6% 43.3%

0%

10%

20%

30%

40%

50%

2012

Figures

Figure 7. Research awards (in $). IITRI not included.

Figure 6. International students (%) in undergraduate and graduate enrollment.

$0

$10

$20

$30

$40

$50

$60

$34,037,941$33,191,545

$54,482,934

$44,668,014

FY09 FY10 FY11 FY12

Mill

ions

Figure 8. FACULTY ACCOLADES 2011–2012

■ Pavel Snopok, Physics, received a Department of Energy “Early Career Award.”

■ Shawn Shadden, Mechanical, Aerospace, and Materials Engineering, received a National

Science Foundation “Young Investigator Award.”

■ Darsh Wasan was named a Fellow of the American Chemical Society.

■ John Ronan, Architecture, won the AIA Institute Honor Award for the Poetry Foundation

building in Chicago.

■ Dirk Denison, Architecture, won an AIA Housing Award for design of a Carmel Residence.

■ Xian-He Sun, Computer Science, named an IEEE Fellow.

■ Alan Cramb, Provost, gave the J. K. Brimacombe Memorial Lecture.

■ John Anderson, President, received the National Engineering Award from the American

Association of Engineering Societies.

Figure 9. MAJOR EDUCATIONAL INITIATIVES 2011–2012

■ More than 20 co-terminal (bachelor-master) degree programs were initiated in the last year.

■ Lewis College of Human Sciences and the College of Science were approved by the Board

of Trustees. Lewis College will contain the departments of Humanities, Psychology, and

Social Science; the College of Science will house Applied Mathematics, Biology, Chemistry,

Computer Science, and Physics. The colleges will accept their first classes in fall 2013.

■ Stuart School Business moved to our Main Campus from the Downtown Campus and

completely redefined its undergraduate curriculum.

■ Armour College of Engineering reorganized its undergraduate programs to emphasize four

themes: Water, Health, Energy, and Security.

■ The School of Applied Technology added its first two tenured faculty members (Robert

Carlson and Robert Brackett) and the graduate programs of the Institute for Food Safety

and Health joined this academic unit.




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2012

Figures




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2012

FiguresFigure 10. Timeline for Fueling Innovation: The Campaign for IIT. Orange line shows quarterly campaign

progress (new cash gifts and pledges) since the initiation of the campaign’s leadership phase in June 2010, including select commitments from lead donors received prior to that date.

Figure 11. Annual fundraising progress (new cash gifts and pledges) from FY08–FY12, including FY13 fundraising goal.

$300

$250

$200

$150

$100

$50

$0

Prog

ress

to

$250

Mill

ion

Goa

l(i

n M

illio

ns)

Leadership PhaseEnds December 2012

$103.8Raised

Star

t

Aug

201

0

Nov

201

0

Feb

2011

May

201

1

Aug

201

1

Nov

201

1

Feb

2012

May

201

2

Aug

2012

Nov

201

2

Dec

201

2

Feb

2013

May

201

3

Aug

2013

Nov

201

3

Feb

2014

May

201

4

Aug

2014

Nov

201

4

Feb

2015

May

201

5

Aug

2015

Nov

201

5

Feb

2016

May

201

6

Fiscal Year Timeline

$144.3FY13 Goal

$176.3

$125

$208.3

$250

$0

Campaign Targets

Campaign Progress

$0

$10

$20

$30

$40

$50

FY08 FY09 FY10 FY11 FY12 FY13 Goal

Mill

ions

$21.0 $21.1$24.2

$41.3 $40.5

$24.8

Figure 12. ADVANCEMENT OF IIT VISIBILITY 2011–2012

■ Press Conferences by Governor Quinn (1) and Mayor Emanuel (2).

■ President John Anderson was named chair of nominating committee to select the new

president of National Academy of Engineering (NAE).

■ Notable speakers (through 9/12): Alice Gast, president, Lehigh University;

Subra Suresh, director, National Science Foundation; U.S. Supreme Court

Justices Stephen Breyer and Antonin Scalia; and Maya Lin, architect

of the Vietnam Veterans Memorial.

■ IIT mentioned/featured in 339 news stories in 103 local, national, and international

media outlets, including: CNN, Crain’s Chicago Business, Chicago Tribune, Huffington

Post, Los Angeles Times, New York Times, NPR, USA Today, Wall Street Journal, and

Washington Post.

■ Architectural Digest named IIT one of “The Ten College Campuses with the Best

Architecture” (August 2011)—and U.S. News & World Report named State Street Village

one of the “Coolest Dorms in the Nation” (March 2012).

■ A New York Times op-ed (February 2012: “Facebook is Using You”) and new book

(I Know Who You Are and I Saw What You Did: Social Networks and the Death of

Privacy) by IIT Chicago-Kent Distinguished Professor of Law Lori Andrews received

significant national media attention.




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2012

Figures




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2012

FiguresFigure 13. Full-time faculty.

Figure 14. Full-time staff. FT administrative staff are funded by general revenues, and FT research administrative staff are funded by direct charges to research grants.

Tenured/Tenure Track Total

FY10 FY11 FY12 FY13

401

288

423

286

419

283

429

279

0

100

200

300

400

500

0

100

200

300

400

500

600

700

800

FY10 FY11 FY12 FY13

FT Research Admin FT Admin Total FT Admin

63 61

651

61

655

47

658643

712 716 705706




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2012

Figure 15. Fall full-time undergraduate enrollment. Female and minority enrollment.

UG FT Female UG FT Minorities

2009 2010 2011 2012

30%

13%

31%

15%

32%

18%

31%

21%288 286 283 279

0%

5%

10%

15%

20%

25%

30%

35%

Figures




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october 25, 2012 2012 · in june 2010, including select commitments from lead donors received prior...

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