A Message from the President: Investing in YOU

Dear Howard University Community,
 
Throughout the difficult days of the coronavirus pandemic, I have taken great pride in how we have cared for each other as a Howard University community. This includes doing all we could to preserve our workforce even as we simultaneously provided $14 million in additional financial aid to our students. This reflects the tremendous value placed on our employees, and our dedication to demonstrating our commitment to all those who work to ensure our institution continues to fulfill its mission and responsibilities.
 
Since the beginning of the pandemic, we have been able to weather disruptions to our operations and revenue streams by containing costs wherever possible, eliminating nonessential expenses, and successfully implementing greater effectiveness and efficiency measures. To preserve staff positions, our organization quickly transitioned to remote work, created a virtual learning environment, and redeployed employees whose previous responsibilities changed, as much of our physical campus was shut down. 
 
Our first quarter financial and operational performance suggests that we can continue our current plan through the second quarter. We are committed to this track, but given constant changes in the larger economic environment we must assess our ability to maintain this level of operational and human resources every quarter. The longer the pandemic and the recession persist, the more difficult it will become to maintain sustainable operations without impacting our workforce. 
 
In addition to maintaining our workforce, I am pleased to announce that this week, after a robust financial analysis, we have decided to invest $80 million from the Howard endowment to fully fund our defined benefit retirement plan, which provides pension benefits for employees who began working at Howard prior to June, 30 2010. There are more than 8,000 total vested beneficiaries in the pension plan, including current and retired employees, who are relying on their Howard retirement benefit to navigate their current lives and plan for their futures. Considering the uncertainty of the economic environment and investment market, this decision will provide a source of stability for many retirees and current active Howard employees.  We also continue to honor our commitments to our current employees through the University’s contributions to the Howard University Savings Plan, which is Howard’s current 403B defined contribution retirement program.
 
Thanks to the creativity, innovation and dedication of Howard University’s senior leadership, we have demonstrated that providing for and retaining our faculty and staff was not only the right thing to do – it was also a sage decision for the institution. In these times it is more clear than ever that Howard is not merely or mostly brick and mortar. It is purpose  fulfilled by our people, and woven over time with our traditions and culture. Our employees have shown themselves to be a bastion of strength and ingenuity during these times when Howard needed both. 
 
I share these updates with you with tremendous pride and humility, and with gratitude to our employees. Our board of trustees deserve tremendous praise for their steadfast governance in these trying times and their support of management’s decisions. 

While we are acutely aware of potential financial uncertainties that we may face over the coming months given the general elections, influenza season, and pandemic impacts, I remain encouraged that we will continue to navigate potential challenges together. Thanks to the hard work and tireless efforts of our entire workforce, Howard is well positioned to weather this crisis and thrive now and in the future. 
 
Excellence in Truth and Service,

Wayne A. I. Frederick, M.D., MBA
Charles R. Drew Professor of Surgery
President