Pursuing

EXCELLENCE

THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK

2013 Annual Report

Pursuing

EXCELLENCE

THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK

2013 Annual Report

Message from the

PRESIDENT

Across every aspect of our business, we advanced

in 2013 to new levels of performance, con-

tinually reaching for excellence in fulfilling

our mission to serve SUNY and New York.

Guided by the leadership and vision of Governor

Cuomo and Chancellor Zimpher, and the wisdom of our

esteemed Research Council, we made strategic investments

in new initiatives that maximize and energize the collective con-

tribution and impact of SUNY research. START-UP NY and SUNY’s

Networks of Excellence form part of The Innovation New York Net-

work created to foster collaboration across the state, attract venture

capital to higher education, and generate new opportunities for job

creation and economic growth. Investments in funding programs such

as the Research Collaboration Grant Program and Technology Accel-

erator Fund produced new intercampus and interdisciplinary cooper-

atives, and new commercially viable technologies.

At the same time, we stayed focused on delivering essential core spon-

sored programs administration and innovation support services for

faculty and students performing life-changing research in life sciences

and medicine; engineering and nanotechnology; physical sciences and

energy; social sciences; and computer and information sciences.

In FY 2013 the RF achieved record growth amidst challenging

times. A 15% increase in sponsored programs revenue brought volume

On the cover: (Clockwise from top left) Shark conservation study at Stony Brook University; bio-based materials development at the SUNY College of Environmental Science and Forestry; sensors research at Binghamton University; student research opportunity at SUNY Downstate Medical Center, and state-of-the-art R&D and prototype manufactur-ing infrastructure at the College of Nanoscale Science and Engineering.

over the $1 billion mark for the first time in the RF’s 62-year history.

The RF received a positive audit report from the New York State Office

of the State Comptroller. The audit found that the RF’s methodology

for assessing the campuses is fair and equitable and that campus offi-

cials are satisfied with the services provided by the RF’s central office.

As an organization, we learned and developed together at a new stan-

dard and pace, recognizing the magnitude and import of our work as

the largest, most comprehensive university-connected research foun-

dation in the country, serving SUNY and New York State. We con-

tinue to review and evaluate our policies, procedures and processes to

improve our service and conduct our business as effectively as possible.

2013 was a year of achievement made possible by the steadfast com-

mitment of a most dedicated and highly resourceful workforce and the

support of our partners at SUNY and throughout the state.

TIM KILLEEN

The Research Foundation for The State University of New York35 State StreetAlbany, NY 12207-2826(518) 434-7000www.rfsuny.org

Excellence in

RESEARCHExcellence in

INNOVATION

“These SUNY Networks of Excellence will bring together our top scientists and researchers to further our understanding of pressing societal issues, and in turn draw new venture capital to invest in commercialization activities that address our chal-lenges in energy, the environment, economics and education. As part of our Innovation Agenda, this initiative will help bring our best ideas to market right here in New York State.” ANDREW M. CUOMO, Governor of New York State

Micro-plastic pollution survey of the Great Lakes, SUNY Fredonia.

Solar energy research, Binghamton University.

Research leads to invention and innovation. The RF has made strategic investments to maximize the collec-tive impact of SUNY research to strengthen the innovation economy that is steadily building across New York State. By fostering collaboration, attracting private partners and uncovering new opportunities, these invest-ments support the work of faculty and students who perform research for public benefit worldwide. In 2013 grants awarded for research and other sponsored programs at SUNY topped $1 billion for the first time.

NETWORKS OF EXCELLENCE

Supported by a $4 million in-vestment from the RF, New York State launched four Networks of Excellence that position the nation’s largest comprehen-sive system of public higher education to become a global scientific leader. Each network brings scientists and scholars from SUNY campus es across the state to collaborate on re-search projects in transforma-tive areas – SUNY 4E (Energy, Environment, Economics and Education), SUNY Health, SUNY Brain and SUNY Materials and Advanced Manufacturing.

These networks are designed to generate innovation, grow the economy, spin out new compa-nies and create jobs.

RESEARCH COLLABORATION GRANT PROGRAM

In 2013 the RF and SUNY awarded $700,000 to faculty researchers who work with colleagues across the system to address big societal issues. The Research Collaboration Grant Program maximizes the impact of SUNY’s research by helping new and existing intercampus collaborations mature into long-term partnerships with sustained growth. The

program seeks out projects that demonstrate originality, student involvement and the potential to attract future fund-ing. The program funds a broad range of scientific research at SUNY, including projects that seek to improve cancer detec-tion and treatment, medical imaging and diagnostics, and climate change.

STEM RESEARCH OPPORTUNITIES FOR SUNY UNDERGRADUATES

Increasing student success in science, technology, engineering and mathematics (STEM) provides the basis for a

globally competitive New York. The RF dedicated $300,000 to stimulate undergraduate recruitment and persistence in STEM and give SUNY gradu-ates a competitive edge as they enter the workforce.

Excellence in

INNOVATIONExcellence in

SPONSORED PROGRAMS ADMINISTRATION

Center for Computational Research, University at Buffalo (Photographer: Douglas Lavere).

“It’s a huge help to get the TAF award. My overarching goal is to translate this discovery from the bench-to-the-bed-side-to-the-curb so as to combat an unmet medical need in cancer resistance.” SABINE BROUXHON Clinical Associate Professor of Emergency Medicine, Stony Brook University

As SUNY’s bridge to the business community, the RF plays a leading role in implementing New York’s Innova-tion Agenda. The RF offers a full complement of seed funding, technology transfer and business development services aimed at commercializing SUNY research for the public good. To date, 1,270 patents have been issued to the RF, placing SUNY among the nation’s top patent-producing universities.

INNOVATION NEW YORK NETWORK

Governor Cuomo appointed RF President Tim Killeen, Cornell University President David Skorton and philanthropist and entrepreneur Jim Simons to

develop a road map for New York that seeks

to maximize

New York’s Innovation Agenda, including START-UP NY, a new $50 million New York State Venture Capital Fund, and the New York State Business Incubator and Innovation Hot Spot Program.

START-UP NY

The RF and SUNY worked closely with Empire State Development (ESD) to launch START-UP NY, which will attract and grow new businesses across the state by enabling direct access to SUNY’s world-

class resources for research and development. Together with ESD, the RF built the regulatory framework required to evaluate appli-cants, establish partner-ships and monitor results to ensure community and economic benefits.

TECHNOLOGY ACCELERATOR FUND

In 2013 the Technology Accel-erator Fund saw a significant return on its investments to advance the development of promising SUNY technolo-gies. Biodex Medical Systems licensed a patented portable lift device developed at Stony Brook University and is manu-facturing the appliance at its plant in Shirley, NY. Backed by additional private-sector in-vestment, Albany-based Hocus Locus, LLC will develop RNA platform technology invented at the College of Nanoscale Science and Engineering that has potential to aid in the detection of cancer and other diseases.

SUNY ENTREPRENEUR-IN- RESIDENCE PROGRAM

In 2013 the RF and SUNY launched the SUNY Entrepre-neur-In-Residence Program

to ensure that SUNY start-up companies are able to attract the outside capital and man-agerial talent to thrive locally. This matching grant program, funded with $125,000 from the RF, places experienced private-sector entrepreneurs on five SUNY campuses.

NEW YORK INNOVATION SHOWCASE

The RF, SUNY and ESD con-vened the New York Innovation Showcase to link innovators and entrepreneurs in upstate New York with capital re-sources in New York City. The inaugural event showcased the potential of the Innovation New York Network, with 25 of New York’s best innovation-based companies pitching to 40 potential investors.

Excellence in

SPONSORED PROGRAMS ADMINISTRATIONExcellence in

LEARNING AND DEVELOPMENT

Atmospheric sciences research, University at Albany (Photographer: Mark Schmidt).

STEM scholarship program, SUNY Oswego.

“SUNY and its Research Foundation are committed to accountability, professional courtesy, fairness, good steward-ship and – above all – integrity in the conduct of scholarly research.”H. CARL MCCALL Chairman, State University of New York Board of Trustees

Thousands of brilliant minds at SUNY are exploring new ideas and advancing the latest technologies. The RF’s sponsored programs administration services allow faculty and staff to focus on research. In 2013 the RF implemented best-in-class resources, tools and guidance for managing 6,983 SUNY research, training and public service projects.

ONLINE EFFORT REPORTING TOOL

The RF eased a major bur-den of sponsored programs management for SUNY faculty researchers and administrative staff with the implementation of the ecert® web-based system for effort reporting. The new online tool streamlines the process for complying with a key federal requirement – certifying that the amount of work required as a condition of a grant has been completed.

COMPLIANCE AND RESEARCH INTEGRITY

The RF ensures that SUNY research projects comply with government, sponsor and university regulations that cover such activities as hiring employees, purchas-ing supplies, working with human and animal subjects and reporting results. Notable achievements in 2013 include implementing two new com-pliance resources that ensure the protection and welfare of human and animal research subjects, and an enterprise-wide Statement on Research Integrity that holds SUNY and the RF to the highest standards of excellence in the ethical conduct of research.

FEDERAL DEMONSTRATION PROJECT

The RF’s role as a charter member of the Federal Demon-stration Project reflects its leadership in research administration. This asso-ciation of federal agencies, academic research institutions and research policy orga-nizations works to improve and streamline processes for managing federally sponsored research projects.

UNIVERSITY-INDUSTRY DEMONSTRATION PARTNERSHIP

Industry-sponsored programs is a rapidly growing segment of SUNY’s research portfolio. The RF negotiated a unique systemwide membership in the University-Industry Demon-stration Partnership that helps SUNY faculty and staff better understand the culture and constraints of their industry counterparts. This membership has opened new research opportunities for faculty.

Excellence in

LEARNING AND DEVELOPMENT

Learning Tuesdays presentation, Research Foundation.

Geography research, University at Buffalo (Photographer: Douglas Lavere).

“I look forward to the networking and professional develop-ment opportunities that being a protégé will foster. This program will allow me to grow and become more capable as a leader.” BRENT DANEGA

Human Resources Manager, SUNY Cortland

The RF is a learning and development organization supporting employees, faculty, staff and the research com-munity to strengthen their skills, achieve their professional goals and expand their knowledge and abilities in all areas of RF operations. Mentoring, leadership training and continual education foster growth and advance SUNY’s research enterprise.

LEARNING TUESDAYS

Occurring on a bimonthly basis, Learning Tuesdays instruct on the business of SUNY’s research enterprise. Since its initial live-streaming broadcast, 24 programs have aired on topics spanning administrative, transactional and compliance matters

associated with research grant management and funding op-portunities for faculty, students and staff. All Learning Tuesday programs are archived and available for viewing on the RF website.

SPONSORED PROGRAMS FUNDAMENTALS

Sponsored programs admin-istration is a complex and highly regulated field. The RF launched Sponsored Programs Fundamentals in 2013 to guide employees through require-ments and protocols of grants management. The course was

developed in collaboration with SUNY campus experts to provide participants with the skills, knowledge and practical learning they need to assist and guide faculty researchers.

RF MENTORING PROGRAM

The RF Mentoring Program connects seasoned profession-als with protégés to build the skills and expertise necessary to advance and achieve. The RF Mentoring Program extends to SUNY campuses across the state, including Bingham-ton University, SUNY Buffalo State, SUNY Cobleskill, SUNY Cortland, University at Albany,

University at Buffalo and Upstate Medical University.

PROFESSIONAL DEVELOPMENT

Professional development is critical to performance. The RF invests in the profession-al growth of its employees through training and tuition assistance programs and by providing tools that help set and achieve career goals. The RF partnered with SUNY’s Cen-ter for Professional Develop-ment (CPD) to develop training courses and a scholarship program specifically tailored for the research community.

Financial

HIGHLIGHTS

In FY 2013 the RF achieved record growth amidst challenging times.

Despite a decline in federal funding from sequestration and the end of research support pro-vided by the American Recovery and Reinvestment Act (ARRA) of 2009, RF sponsored programs revenue grew 15%, surpassing the $1 billion mark for the first time in the organization’s 62-year history. Funds generat-ed by grants and contracts for research programs conducted at SUNY campuses comprise about 94% of RF income.

The rise in sponsored programs revenue was driven by a 61% increase from Private and Other sources, primarily due to the Global 450 Consortium at the College of Nanoscale Science and Engineering (CNSE). This $4.8 billion, first-of-its-kind col-laboration is comprised of five leading international companies – IBM, Intel, Global Foundries, Samsung and TSMC – working

to create the next generation of computer chip technology.

The RF responded to the changing funding landscape by working with SUNY to grow research from nonfederal sources. The RF has engaged with state and industry partners to extend the successful CNSE business model across the state. Examples include the Computer Chip Commercializa-tion Center in Utica, the CNSE Photovoltaic Manufacturing and Technology Development Facility in Rochester, and the Medical Innovation and Commercializa-tion Hub in Buffalo.

The RF implemented an an-nual budget review process to manage expenses and ensure progress toward its strategic goals. This has enabled the RF to invest in value added programs such as the Networks of Excellence, Technology

Accelerator Fund, Research Collaboration Grant Program and STEM Research Opportuni-ties for SUNY Undergraduates, which generate growth in an era of federal retrenchment.

The RF continues its efforts to increase the amount of funding generated by licensing SUNY inventions; to stretch the impact of SUNY research by providing seed funding for promising tech-nologies; and to build a culture of entrepreneurship across the SUNY system. START-UP NY will attract high-tech and other start-ups, venture capital, new business and investments to SUNY campuses, Centers of Excellence, Centers for Advanced Technology and business incubators. These partnerships give promise to new discoveries that yield more licensing and royalty income.

The RF uses the majority of its funds to provide direct services

to sponsored research pro-grams. These services include hiring employees, purchasing supplies and reporting to sponsors at SUNY campuses in accordance with sponsor guide-lines. With 16,300 employees dedicated to SUNY research, salaries and employee fringe benefit costs comprise over 40% of the RF’s total expenses.

While many employers have eliminated post-retirement plans due to their significant cost, the RF continues to sponsor post-re-tirement benefits to attract and retain the best employees and to maintain comparability with SUNY employee benefits. The RF’s net assets are in a deficit position of $68.8 million mainly due to the impact of the post-re-tirement benefit liability. This obligation has decreased $23 million since 2012, due mainly to interest rate changes.

SPONSORED PROGRAMS REVENUESin thousands

TOTAL EXPENSES in thousands

Federal

2013

2013

2012

New York State and LocalPrivate and Other

For the RF’s full financial statements, go to www.rfsuny.org/annualreport

Salaries $334,564

Fringe Benefits $136,246

General Services $142,588

Subawards $62,633

Supplies $70,360

Equipment $75,350

Leases and Facilities Services $106,094

Travel $19,867

Other Expenses $120,156

The Research Foundation for The State University of New York

Visit www.rfsuny.org and connect with the RF on

$532,581

$193,005

$289,646$179,393

$154,342

$548,261