DREXEL UNIVERSITY PRESIDENT’S REPORT 2013

PRESIDENT’S MESSAGE

An annual report is by nature a chronicle of change. What makes me especially proud of Drexel is that our biggest transformations flow from the constants of our institutional character, the things that have made Drexel unique for well over a century.

Drexel students are self-directed, ambitious and intent on gaining real-world experience as a pathway to leadership. We’re helping them build on those traits through a University-wide focus on entrepreneurship, most directly manifested in the new Charles D. Close School of Entrepreneurship.

Our innovative, engaged faculty are focused on impact. We continue to foster their work through new interdisciplinary research institutes in fields like energy and the environment and cybersecurity. We’ve also developed new vehicles like Drexel Ventures to leverage the clinical and commercial potential of Drexel-created technologies.

The advantages and challenges of being an urban university are part of Drexel’s core, and we’re helping strengthen nearby neighborhoods that have been too often neglected. Our strategy includes not just robust collaborative initiatives like the Dornsife Center for Neighborhood Partnerships, but a hard look at how Drexel affects the community through operations like student housing. At the same time, we’re developing 12-plus acres of underutilized land near Amtrak 30th Street Station into an “Innovation Neighborhood” that will help put Philadelphia on an equal footing with the nation’s best technology commercialization centers.

Even as we celebrate our achievements, a relentless drive for excellence and relevance is also part of Drexel’s DNA. We face rising challenges like increasing the affordability of a Drexel education while continuing to invest in academic quality and student aid and retention. Fortunately, our culture of innovation and collaboration is ideally suited to meeting any challenge, and I look forward to what we will accomplish together as an institution.

Sincerely,

John A. Fry
President

Students

At the center of everything Drexel does is one fundamental relationship, between the University and our students. Their talents inspire us; their educational needs drive our decisions.

Student Snapshot Fall 2013

26,132 Students

Up 21.3% Since 2008

Academics and Resources

Drexel continues to build new intellectual and educational capacity that inspires our teaching and scholarship. We call that work “Transforming the Modern Urban University.”

Faculty

100 New Tenure-Track

RESEARCH FACULTY LINES BEING CREATED BY 2017

FULL-TIME FACULTY

5 New National Science Foundation Career Awards

RECOGNIZING JUNIOR FACULTY (ESPECIALLY WOMEN AND MINORITIES) FOR OUTSTANDING TEACHING AND RESEARCH

ANDREA FORTE, COLLEGE OF COMPUTING & INFORMATICS, for a project on design of participatory information environments to allow assessment of information quality and encourage contributions
RACHEL GREENSTADT, COLLEGE OF ENGINEERING, for work focusing on Internet privacy and the rise of big data
M. ANI HSIEH, COLLEGE OF ENGINEERING, for research into how fluid dynamics affect unmanned underwater robotic vehicles
JENNIFER RODE, COLLEGE OF COMPUTING & INFORMATICS, for a project on gender-equity issues in the design of human-computer interaction
ALEKSANDRA SARCEVIC, COLLEGE OF COMPUTING & INFORMATICS, for an investigation into how to develop real-time information displays supporting fast-response, interdisciplinary medical teams

“You are known by the quality and capacity and the excellence of your faculty.”

President John A. Fry

Academic Enterprise

5 New Academic Units

CLOSE SCHOOL OF ENTREPRENEURSHIP

Integrating innovation into curricula University-wide
Developing residential and co-op programming around entrepreneurship
Creating new degree programs

COLLEGE OF COMPUTING & INFORMATICS

Leveraging and aligning University-wide strengths
Uniting programs from three colleges
11 NSF CAREER award recipients

SCHOOL OF ECONOMICS

In LeBow College of Business
Faculty leaders in international trade, industrial economics and more
New MS and BA programs

GRADUATE SCHOOL OF BIOMEDICAL SCIENCES AND PROFESSIONAL STUDIES

In College of Medicine
Innovative, cross-disciplinary masters, PhD and certificate programs
Builds on history of excellence in scientific training programs

CENTER FOR HOSPITALITY AND SPORT MANAGEMENT

Reflects growing importance of tourism and leisure locally and nationally
Expresses Drexel’s commitment to economic impact

“As we apply knowledge and skill to solve problems that beset humanity, that’s what we call ‘Thinking Forward.’”

Provost Mark L. Greenberg

“Just imagine you create something, and some student is being helped by it. It’s been a great experience. And it’s been very impactful to me.”

That’s what Christopher Gray told USA Today about the experience of developing Scholly, his mobile app for scholarship searches that has been downloaded more than 40,000 times since its launch. As part of Drexel’s groundbreaking entrepreneurship co-op through the Close School of Entrepreneurship, Gray received funding, mentorship and space in the Baiada Institute for Entrepreneurship to further develop Scholly. The app lets high school and college students easily search for scholarships they didn’t even know they could apply for, which is something Gray wished he could have used when he found $1.3 million in scholarship money in high school. Now the junior business student with an entrepreneurship concentration is using the skills he developed at Drexel to build his startup. Scholly was named one of the top 20 local up-and-coming startups by Philadelphia magazine and has received notice from Forbes, U.S. News & World Report, The Philadelphia Inquirer and local television and radio.

4 community college network sites

Learning Spaces

4 New or Renovated Academic Centers

GERRI C. LEBOW HALL, HOME TO LEBOW COLLEGE OF BUSINESS

Opened October 2013
$92 million project inspired by Bennett S. LeBow’s $45 million gift
12 stories, 177,500 square feet, 15 new classrooms

STRATTON HALL, NEW HOME FOR PSYCHOLOGY DEPARTMENT

Renovations completed in November 2013
Psychology Department faculty in a single location for the first time
Heart of collaborative research featuring Arts and Sciences, Medicine and more

THREE PARKWAY, NEW CENTER CITY SPACE FOR COLLEGE OF NURSING AND HEALTH PROFESSIONS

186,000 square feet (five stories of 20-story tower)
Research, instructional and administrative space
Expands Drexel’s presence on Benjamin Franklin Parkway (begun with Academy of Natural Sciences merger)

NESBITT HALL, NEW HOME FOR SCHOOL OF PUBLIC HEALTH

Renovations completed in December 2013
Faculty and students moved to University City Campus
Project funded by Drexel and Pennsylvania’s Campus Energy Efficiency Fund

“Every business person expects a return on investment, and the return here will likely be the best investment I’ve ever made.”

Bennett S. LeBow ’60, Hon. ’98 at the opening of Gerri C. LeBow Hall

Gerri C. LeBow Hall

2 Major Learning, Teaching and Research Resources

ExCITe CENTER, for high-tech collaborations between STEM disciplines and the arts and design

RESEARCH COMPUTING CO-LOCATION CENTER, providing high-power resources for investigators

Music Hack Day, ExCITe Center

Experiential Learning and Student Life

At Drexel, classroom learning builds on a foundation of on-campus enrichment and real-world professional experience. Our attention to those areas is what sets a Drexel education apart.

The Drexel Co-op

“I’m really glad I did it, because I was surrounded by artistic individuals who looked at design with an entirely different eye, giving me a different perspective on the way I created things.”

Rachel Young, a 2013 graduate, thanks Drexel’s Westphal College of Media Arts & Design for the tools she needed to qualify for a co-op with Marvel Entertainment, the comic book creators behind Spider-Man and Ironman. She said of her training at Westphal: “The program teaches you everything — the design parts and the programming parts — and then lets you decide which path you want to follow.”

U.S. CO-OP EMPLOYERS

“Connecting the culture from the United States and the culture from Asia was really interesting, and helped me understand how people did business.”

Will Heyman ’14, senior communication major, on his co-op experience with a digital marketing company in Kuala Lumpur

Student Life

942,000 SQUARE FEET OF NEW HOUSING AND RETAIL

CHESTNUT SQUARE

Developed and operated by American Campus Communities (ACC)
$97 million, 19-story, 361,000-square-foot project
Residential tower for 860 students
Street-level retail including restaurants, art supply, banking, new bookstore space

LANCASTER AVENUE AND 34TH STREET

Next partnership with ACC, ground broken November 2013, opening fall 2015
$170 million, 581,000-square-foot, 24-story project, largest in Drexel and ACC histories
Apartments and suites for 1,300 students
20,000 square feet retail anchoring revitalized Lancaster Avenue corridor

"This is a really big step forward in the long-term shift of our students back onto campus, one of the big moves our institution is making."

President John A. Fry at the groundbreaking at Lancaster Avenue and 34th Street

2 NEW STATE-OF-THE-ART CENTERS SERVING STUDENTS

DREXEL CENTRAL

A “one-stop” customer service center for registration and financial questions, in person, by phone or online

STUDENT HEALTH CENTER

A state-of-the-art physician practice serving Drexel students and employees

3 CHAMPIONSHIP FIRSTS FOR DREXEL ATHLETICS

Women’s basketball wins WNIT Championship, first national postseason championship for a Philadelphia Division I women’s team
Drexel crew wins Aberdeen Dad Vail Regatta team title, plus men’s points trophy and varsity eight gold
Men’s soccer wins first-ever CAA tournament championship, makes consecutive NCAA tournaments for first time

“There are over 300 student organizations at Drexel — cultural organizations, organizations that pertain to certain majors, general interest organizations. Really, whatever your interest is, there’s a club for it, and if there isn’t then it’s super-easy to start one. ”

Taylor Collins ’15, College of Nursing and Health Professions student, student government VP and chair of student organization recognition committee

Research and Innovation

Universities represent the nexus of the forces — education, collaboration and discovery — necessary to meet the challenges facing society. Drexel has made it a strategic priority to harness those forces to improve quality of life for all.

Research Enterprise

“This work is something we’re really excited about, and it’s only happening at Drexel.”

Cameron Abrams (left) of the College on Engineering on the novel AIDS-fighting molecule DAVEI that he and Irwin Chaiken of the College of Medicine designed

30 Projects

LICENSED OR UNDER DEVELOPMENT VIA COULTER FOUNDATION RESEARCH PARTNERSHIP; EXAMPLES INCLUDE:

The Belly Band project, which provides comfortable wireless monitoring for women in labor utilizing integration of electronics into fabric in new ways
A tumor margin detection project, licensed to MarginSurgical, that allows surgeons to assess in the operating room whether tumors have been completely removed.

1,400 Research Projects Involving Human Subjects

NOW OPERATING UNDER FULL AAHRPP ACCREDITATION, INDICATING THE HIGHEST STANDARDS OF HUMAN SUBJECT PROTECTION IN CLINICAL RESEARCH

HUBO robot development

“How do we take advantage of these great opportunities for us to kick the tires of our robots? That is something that we want to continue doing.”

Paul Oh of the College of Engineering on participating in the DARPA Robotics Challenge involving robots in disaster response

Technology Commercialization

Thin-film photovoltaic materials, developed by Jonathan Spanier of the College of Engineering, could improve solar energy performance
A new drug therapy for Parkinson’s disease, led by Sandhya Kortagere of the College of Medicine, aims to eliminate side effects
“Plasma acid,” a project of Alex Fridman and Alex Rabinovich of the A.J. Drexel Plasma Institute, may lead to a less environmentally harmful way to extract oil from the ground
A system that monitors software component interaction, by Yuanfang Cai of the College of Computing and Informatics, will lead to more stability as programs are developed and change over time

Global Partnerships

24 HEBREW UNIVERSITY RESEARCHERS JOINING CHILDREN’S HOSPITAL OF PHILADELPHIA AND DREXEL INVESTIGATORS

AT A SYMPOSIUM TO BRAINSTORM PEDIATRIC RESEARCH BREAKTHROUGHS

100 RESEARCHERS FROM ASIA, EUROPE AND THE U.S. AT THE FIRST DREXEL-SARI INTERNATIONAL SYMPOSIUM IN SHANGHAI

CELEBRATING ONE YEAR OF PARTNERSHIP WITH THE SHANGHAI ADVANCED RESEARCH INSTITUTE

“Sometimes you’re pushed by people who come with a different perspective from a different place. It forces everybody to break down the disciplinary boundaries.”

Julie Mostov, vice provost for global initiatives, was talking about the potential inherent in the joint research agreement signed by Drexel, The Children’s Hospital of Philadelphia (CHOP) and Hebrew University of Jerusalem in November, to collaborate on pediatric translational research. Each institution acknowledges a duty to help meet the challenges facing society, and this collaboration recognizes that extraordinary scientific achievement depends on combining the strengths of different institutions. Drexel brings its Coulter Foundation-supported expertise in translational research to the relationship; Hebrew University’s School of Pharmacy is a leader in drug delivery research; and CHOP is the number one pediatric medical institution in the nation and a pioneer in pediatric genomics.

Local Impact

Drexel owes much of our unique character to our urban location, and we repay the debt through partnerships, service and economic impact that build a stronger neighborhood and city. Drexel is in Philadelphia, of Philadelphia and for Philadelphia.

Civic Engagement

75+ Grassroots Service Projects

BEGUN OR MANAGED BY STUDENTS AND EMPLOYEES

100% of Freshmen

PARTICIPATING IN THE CORE CIVIC ENGAGEMENT COMPONENT OF DREXEL’S CURRICULUM

Mantua Gardens

$28+ Million in Lifetime Gifts

FROM THE LATE PHIL LINDY

The Lindy Scholars program, matching West Philadelphia students with Drexel mentors and other support throughout middle and high school years
The Lindy Center for Civic Engagement, helping students find service opportunities and connecting service and academics
The Lindy Institute for Urban Innovation, incubating and launching community initiatives that build regional economic strength

Phil Lindy with Lindy Scholars

“The ways that we all rediscover that fundamental part of ourselves are through the relationships with one another and sometimes through our own self-expression.”

Sister Mary Scullion, co-founder of Philadelphia anti-homelessness nonprofit Project HOME, one of Drexel’s partners in civic engagement

Economic Development

74 Philadelphia Startups

(AND 125+ OVERALL) LAUNCHED VIA DREAMIT VENTURES, NOW HEADQUARTERED IN INNOVATION CENTER AT 3401, A PARTNERSHIP OF DREXEL AND UNIVERSITY CITY SCIENCE CENTER

$2.2 Billion Estimated Annual Economic Impact

FROM THE INNOVATION NEIGHBORHOOD, DREXEL’S RESEARCH-DRIVEN MIXED-USE DEVELOPMENT ON 12 ACRES IN THE HEART OF PHILADELPHIA

75+ Acres of Potential at 30th Street Station

WHERE DREXEL IS PARTNERING WITH AMTRAK AND BRANDYWINE REALTY TRUST ON A JOINT MASTER PLANNING STUDY INCLUDING THE RAIL YARDS

30th Street rendering

Neighborhood Initiatives

“Rather than bringing our neighbors to campus, or bringing education and services to Powelton Village and Mantua as visitors, Drexel will stand alongside residents in an inspiring, inviting facility open to all.”

Lucy Kerman, Drexel’s vice provost for university and community partnerships, is leading the effort to grow the Dana and David Dornsife Center for Neighborhood Partnerships. The Dornsife Center is an urban extension center in the tradition of the land-grant universities’ programs that brought services and partnership to rural areas. It’s a place to apply and deepen University expertise in collaboration with neighbors. In its first year, while its 1.3-acre West Philadelphia site is still being renovated, the center has already launched programs in community lawyering (criminal records expungement, estate planning), financial services (literacy workshops, tax preparation), employment assistance (Neighborhood Job Spot, offering job-ready skills) and information technology (a KEYSPOT digital literacy lab).

Support and Finances

One test of Drexel’s vision is the support and involvement it inspires in alumni, friends and colleagues. This was a banner year in that regard.

Campaign and Fundraising

Corporate and Foundation Support

$21 Million in New Gifts

VS. $15 MILLION GOAL

“To me, giving is just a simple expression of gratitude. I had great life-learning experiences at Drexel that led me to where I am today, which is honestly a great place.”

Jessica Bowers ’02, director of marketing for biotech firm Genisphere, on why she supports Drexel as a young alumna

Alumni Profile

“Many students entering Drexel come from challenging family situations that don’t provide the support that many others take for granted. The intention, through this scholarship fund, is to facilitate opportunities for students who are trying to develop academically, despite such challenges. These challenges could result from trying to pay their own way through school or helping out at home while in school.”

Martin J. Lutz III ’88 and ’95 established the Martin J. Lutz Endowed Scholarship Fund in memory of his father, Martin J. Lutz Jr. ’63 and ’67, to help LeBow College of Business students who may be struggling financially or enduring hardship as a part of their family situations. Lutz himself worked two jobs to afford college.

“I’ve never met a man quite like Martin Lutz. Albeit it was for an hour, that hour will have an everlasting place in my heart. I never knew a person could be so giving. The stories he told me about his life have made me realize, above all, to do what I love. Mr. Lutz loves to give back to those in need and, because of this, a large financial burden was taken off of my family’s shoulders, knowing I had funds to carry me throughout the year. This scholarship has helped me immensely.”

Timothy Banks-Washington ’16 is a recipient of the Martin J. Lutz endowed scholarship. He took his first classes inside the new Gerri C. LeBow Hall in the fall, after completing an accounting co-op in Bala Cynwyd.

Financials

FY2013 Financial Summary

FINANCIAL POSITION

As of June 30, 2013, total net assets grew to $1.1 billion from $946.3 million in 2012 and included $508.3 million in unrestricted, $255.5 million temporarily restricted for specific purposes and $290.0 million permanently restricted for endowments and student loans.

Cash remained strong at $87.5 million, due to strong financial results and favorable capital expenditure timing.

Contributions receivable totaled $82.2 million. Accounts receivable amounted to $126.2 million, including student charges of $54.2 million, $60.3 million for sponsored program grants and contracts, patient charges of $8.5 million and $3.1 million due to the College of Medicine from Tenet Healthcare Corporation.

Total liabilities decreased by $7.6 million, driven by lower accrued expenses, decrease in postretirement and pension benefit, and $11.6 million of retired debt retirement liabilities, which were offset by an increase in deposits in the amount of $10.6 million.

ACTIVITIES

Total revenue in fiscal year 2013 amounted to $965.3 million, which exceeded the board-approved budget as the result of higher net tuition and auxiliary enterprise revenue due to an overall increase in the number of undergraduate students attending the University.

Expenses of $896.4 million compared favorably with the budget.

The change in net assets from operating activities was $68.9 million. The total change in net assets was $107.5 million, with non-operating activity including endowed gifts, realized and unrealized gain on investments net of endowment payout and other non-operating income.

ENDOWMENT

As of June 30, 2013, the portfolio market value was approximately $599.9 million including certain participating trusts and non-pooled investments, up from $566.5 million at the end of the previous fiscal year. This includes the $48.4 million Academy of Natural Sciences endowment. Performance of total pooled assets was more than 9 percent, in line with 2013 market conditions as they relate to Drexel’s asset allocation policy.

Consolidated Statements of Activities and Financial Position (PDF)