Tower cranes were in use at The Yoh Football
Center and West Edens Link a new dormitory complex
that will accommodate about 350 students
Duke had another good fiscal year in 2000-2001.
As a group, our academic programs finished the year with additions
to reserves, due to continued efforts by the schools and colleges
to contain costs and increase revenues. These funds will finance
capital projects and buffer future budget shortfalls. We continue
to constrain administrative costs through redesign, increased collaboration,
and investments in technology. We are also upgrading and replacing
administrative systems to manage our resources more effectively
and respond to the growing information demands of our complex organization.
Despite a weakening economy and lackluster
investment markets, university net assets for the year ended June
30, 2001, remained essentially flat at $4.4 billion. After five
years of total returns averaging 29.1 percent, the total return
on Dukes long-term investment portfolio was minus 4.6 percent.
Excellent charitable support coupled with fiscal responsibility
offset this loss.
The universitys financial strength
and flexibility are reflected in our credit ratings. The university
maintained its AA+/Aa1 bond ratings from Standard and Poors
and Moodys. Only a few universities enjoy higher ratings,
and each has a level of endowment per student several times that
.Duke faculty and staff have now moved into
their attractive new Trinity Heights homes, designed by Duke
to encourage employees to live next to East Campus and to
add stability to the neighborhood.
The Duke University Health System posted a
modest operating surplus before a write-down representing goodwill
and other assets related to a hospital affiliation and provider
operations. The write-down will reduce future annual amortization
changes and better position the health system for positive operating
Dukes relatively rapid ascent as one
of the worlds leading research universities is all the more
remarkable given its modest resource base. Nevertheless, preserving
Dukes academic quality will require substantial investments
in teaching, research, and infrastructure.
I close this report by expressing yet again
my warm appreciation to the countless people who in the past year
contributed to Dukes current strength and excellent prospects.
Tallman Trask III
EXECUTIVE VICE PRESIDENT