Pitt investments, endowment plummet

Pitt recorded the largest drop in assets in its history, it announced Friday.

The University lost about $541 million, leaving Pitt with almost $2.6 billion in total net assets at the end of June.

Much of the loss can be attributed to a decrease in endowment investments. Financial statements reviewed by the Board of Trustees’ audit committee showed that the University had $1,868,203,000 in endowments as of June 30, about $524 million less than the $2,392,358,000 the University had in endowments as of June 30, 2008.

Pitt received more than $12 million more in research grants and contracts in 2009 as compared to 2008. The University also announced an increase of more than $34 million in income from tuition.

The University also reported losing $34.9 million in an alleged fraud scheme involving Westridge Capital Management.

“At this time, there is insufficient information to confirm the timing or amount of the University’s ultimate recovery relative to this investment,” the University budget documents read.

The audit committee also recommended that the full Board of Trustees approve a customer information security plan when it meets next week. The plan would outline what steps the University should take to protect the identities of its “customers.”

Among the suggestions are that the University store sensitive information in locked rooms and filing cabinets, use firewalls on its computers, shred and erase information when it’s no longer needed and discourage the use of the Social Security numbers.

Pitt spokesman John Fedele said “almost nothing” in this policy was different from what the University did in the past. The Fair and Accurate Credit Transactions Act required some institutions, including the University, to create a formal program to prevent identify theft.