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HARVARD UNIVERSITY Harvard s Nine Faculties The expression "every tub on its own bottom" is often used to describe the decentralized organization and financial arrangement of the 9 faculties overseeing Harvard s 12 schools and colleges. Each faculty is headed by a Dean, who is appointed by the President, and each is directly responsible for its own finances and organization. In addition to the nine faculties, Harvard is also home to the new Radcliffe Institute for Advanced Study, a major research and educational center where men and women pursue advanced work in all fields and disciplines. The University Administration supports the activities of the faculties and other operations on a University-wide basis. The faculties are: 1) Faculty of Arts and Sciences (FAS) Humanities, natural sciences, computer sciences, and social sciences includes:      Harvard College Division of Engineering and Applied Sciences      Graduate School of Arts and Sciences      Division of Continuing Education 2) Faculty of Medicine General medicine and medical specialties; medical research includes:      Medical School      School of Dental Medicine 3) Graduate School of Business Administration 4) Graduate School of Design Architecture, landscape architecture, urban planning 5) Divinity School Theology, world religions, ministerial studies 6) Graduate School of Education Education, educational practice, human development 7) John F. Kennedy School of Government Public policy and administration, political economy 8) Law School Constitutional, criminal, and international law; corporate finance 9) School of Public Health Public health policy, epidemiology, nutrition, international health Also at Harvard University there is a interdisciplinary center for scholarship and learning-The Radcliffe Institute for Advanced Study. Governance of the University The University has two governing boards. The Harvard Corporation - known formally as the President and Fellows of Harvard College - is the University s executive board. The oldest corporation in the Western Hemisphere, the seven-member board is responsible for the day-to-day management of the University s finances and business affairs. The Corporation members are Lawrence H. Summers, President; D. Ronald Daniel, University Treasurer, and Director, McKinsey & Co.; Hanna Holborn Gray, President Emerita and Harry Pratt Judson Distinguished Service Professor of History, The University of Chicago; Conrad K. Harper, Partner, Simpson Thacher & Bartlett; James R. Houghton, Chairman of the Board Emeritus, Corning Inc.; Robert G. Stone Jr., Chairman Emeritus/Director, Kirby Corp.; and Herbert S. Winokur Jr., Chairman and Chief Executive Officer, Capricorn Holdings Inc. Significant matters of educational and institutional policy are also brought before the President and Fellows by the President and Deans. The Board of Overseers consists of 30 members who are elected at large by graduates of Harvard and Radcliffe. Through its Standing and Visiting Committees, the Board is informed about educational policies and practices of the University and provides advice to, and approves important actions of, the Corporation. Both the Corporation and Overseers must approve major teaching and administrative appointments. Students at Harvard University Visitors often ask: Who is the typical Harvard student? The answer is that there is no such person. Each student is a unique individual, and the student body is incredibly diverse. Harvard men and women represent an array of ethnic groups, religious traditions, and political persuasions. They come from every region of the United States and more than 100 other countries. They include undergraduates and graduate, continuing education, and Summer School students. They range from pre-teens to octogenarians; in 1997, Mary Fasano became the oldest person ever to earn a Harvard degree when she graduated from the Extension School at the age of 89. Harvard College students have a remarkable range of backgrounds and academic and extracurricular interests. Two-thirds come from public schools, and about two-thirds receive some form of financial aid. Despite their diversity, Harvard students as a group do seem to share a few characteristics. 1. Academic excellence. In 1999, Harvard led the nation in Marshall Scholars, with six seniors being chosen, along with a recent graduate. And for seven out of the last nine years, Harvard led the nation in Rhodes Scholars (tying with the University of Chicago in 1998). The application process for the Harvard College Class of 2004 marked the ninth time in the past decade that applications for admission had risen. By all the standard measures of academic talent, including test scores and academic performance in school, the group is impressive. For example, more than 56 percent of the candidates averaged 1,400 or higher on their SATs, almost 2,000 scored a perfect 800 on their SAT II English, over 2,500 scored 800 on their SAT II math, and almost 3,000 were valedictorians of their high schools.   2. Harvard students display their talents in a wide array of extracurricular activities - including music, dance, theater, sports, journalism, and public service. Sukanya Lahiri 00 has a dream of peace for the Middle East. But she doesn t just dream about it; she s tried actively to help bring it about. At Harvard, through a program called Seeds of Peace, Lahiri worked with students from embattled areas of the world, including Bosnia, the Middle East, and the inner cities of the United States. "We instill conflict resolution and mediation skills into young people and hope that they ll take those skills home with them," she said. In 1997, Lahiri won a National Conference of Christians and Jews Youth Humanitarian Award. A joint concentrator in sociology and economics, Lahiri also worked as a volunteer research assistant for Rosabeth Moss Kanter, a professor at Harvard Business School. "I am a great believer in the power of young people to create major transformation," Kanter said. "With her combination of skills, motivation, and dedication, I have no doubt Sukanya can have a big impact." 3. Harvard students show a real knack for taking what they ve learned – in school and in life – and applying it to solve problems. During her four years at Harvard, Gloria Bruce 00 spent some time every week tutoring children in an after-school enrichment program in Boston. Alongside other volunteers, Bruce, a history concentrator, worked one-on-one with a group of 6- to 12-year-olds, helping them with homework, honing their math and reading skills, and leading them in creative learning projects. Bruce ended up co-director of the program. On the road from freshman to senior, Bruce s other journey led her to a commitment to public service. In addition to working during the school year, she spent time during the summer living in the Boston community and working with the children every day. "The program means a lot to me," she said. "It s the most meaningful thing I ve done at Harvard. It made me realize that teaching and working with young children will be at least a part of my career." Troy Stanfield, MBA 00 Consultant, Bain & Company "My success at Bain is largely due to my experience at Harvard Business School. Instead of reading textbooks, at HBS you read case studies describing real business problems, take on the role of the protagonist, and struggle to find the right answer. The opportunity to play entrepreneur two to three times a day through the cases, to fail and succeed in the laboratory environment of the classroom, was invaluable training. What also makes the case study method so magical is that you analyze them with 80 other people who are all from different backgrounds and cultures. I found time and time again, that after having spent all night coming up with the right answer, my section mates presented equally compelling reasons to take dramatically different approaches. These sort of exchanges can t help but expand your horizons and force you to think in new ways—a critical skill for a consultant. But the single greatest benefit I derived from my HBS experience was the close friends that I made. It s strange to think that in just two years you can forge such deep relationships, but the everyday interactions, the struggles and triumphs in working through the cases, makes one very close with their section mates. Looking forward, one day I d like to be an entrepreneur. Even though society is changing, HBS gives me the stamp of approval and the credentials that I may need when I begin to look for funding. I also know that the chance to work with my section mates and tap into the Alumni Network will be priceless." From running Internet start-ups, to helping developing nations industrialize, to making a difference in the non-profit sector, to managing money on Wall Street, HBS graduates are shaping the global economy and as important, pursuing their dreams. Their success has one common denominator: their time at Harvard Business School—a transforming experience that gave them the tools and life lessons they needed to chart their own future. Harvard s Endowment Funds Harvard University s endowment, valued at $19.2 billion at the end of FY 2000, is a collection of more than 8,800 separate funds established over the years to provide scholarships; to maintain libraries, museums, and other collections; to support teaching and research activities; and to provide ongoing support for a wide variety of other activities. About 85 percent of these funds carry some type of restriction. Although their specific use varies greatly, all of Harvard s endowment funds have a common objective: to support activities not just for one year, or even one generation, but for perpetuity. By their very nature, endowment funds require the balancing of current and future needs. Like other endowed institutions, Harvard has long followed investment and distribution policies designed to avoid the erosion of purchasing power by maintaining the value of existing endowment in real terms (after inflation) and by providing a steady, sustainable, and predictable flow of funds to support current operations. In addition, these policies recognize the need to regularly add to the endowment in order to cover the growth of University expenses in excess of normal inflation. The Harvard Management Company, a subsidiary of the University, is responsible for managing the endowment assets. Its recent successes, combined with new gifts generated by the Campaign, have enabled the University to increase the amounts paid out for operations. All in all, the endowment has helped to provide the stability necessary for Harvard to remain a premier educational and cultural institution. Market Value of Endowment at June 30, 1999 (Latest breakdown available) Faculty of Arts and Sciences $5,773,682,000 Business School 950,779,000 Dental Medicine School 95,565,000 Design School 196,755,000 Divinity School 265,760,000 Education School 215,422,000 Kennedy School 409,000,000 Law School 717,799,000 Medical School 1,607,976,000 Public Health School 508,973,000 Other Academic Departments 1,968,498,000 Central Administration 1,271,166,000 Pledge balances 279,679,000 Interests in perpetual trusts held by others 315,216,00 Less Funds for Construction (40,595,000) Total $14,535,675,000 Income and Expenses Income During fiscal year 1999 the University s income totaled $1,788 million. The chart below shows the sources of that income. Expenses Expenses during the year totaled $1,784 million. The chart below shows how the money was spent. by Stancu Marian Ionut Vladut PAGE PAGE 8 쥁