This week, multiple women 
have spoken about Former Univer-
sity of Michigan Provost Martin 
A. Philbert’s alleged sexual mis-
conduct for the first time since the 
investigation began. University 
alum Emily Renda spoke to Mich-
igan Radio about her interactions 
with Philbert dating back to 2012. 
Renda, who worked as a global 
health and student life coordin-
ator at the School of Public Health 
where she was previously a stu-
dent, is one of the first of alumni to 
publicly accuse Philbert of sexual 
misconduct. 
Additionally, one of Philbert’s 
former lab employees alleged-
ly told Anthony Walesby, former 
senior Director of the Office of 
Institutional Equity and Title IX 
coordinator, that Philbert sexually 
harassed her. 
Philbert, also the executive vice 
president of academic affairs, was 
placed on administrative leave on 
Jan. 21 following a string of alleg-
ations of sexual misconduct. In 
addition, after being removed from 
his role as provost in March, Phil-
bert retired from his position at the 
University on June 17. 
University 
spokesman 
Rick 
Fitzgerald told The Daily in an 
email that the University con-
demns sexual misconduct and 
wants to promote a safe commun-
ity, but noted they are not able to 
comment on specific allegations 
due to the ongoing investigation. 
“At the University of Mich-
igan, we condemn all forms of 
sexual misconduct,” Fitzgerald 
wrote. “Whether it takes place 
now or took place in the past, it is 
unacceptable. All members of our 
community deserve to feel safe 
and supported. The university has 
taken extensive measures to com-
bat sexual misconduct...Because 
of the independent WilmerHale 
investigation, we are not able to 
offer a specific response to the 
allegations you outline in your 

email.”
In 2012, Renda said she was 
being stalked by her ex-boyfriend 
and Philbert began offering her 
rides home from the office, accord-
ing to Michigan Radio. The car 
rides turned into a six-month 
physical relationship with Phil-
bert, which ended in 2014, Renda 
alleged. After Philbert ended the 
relationship, 
however, 
Renda 
said he continued to make sexual 
advances.
“(One day) he came into my 
office and hugged me for a very 
long time, and then started to put 
his hands down my pants,” Renda 
said. “And I was like, ‘whoa, whoa, 
what are you doing? I thought you 
said that this was over. We’re not 
doing this anymore.’”
Renda decided to leave the Uni-
versity after changes with their 
professional relationship, includ-
ing reassigning a large project 
from Renda to another staffer. 
Renda said she started experien-
cing panic attacks as a result of this 
shift in Philbert’s behavior. 
“I left (the University) in com-
plete shame,” Renda said. “I felt 
like a complete professional and 
moral failure. I felt like I had 
engaged in an affair with a mar-
ried man, who was also my boss, 
and that I ruined my career and 
that that was my fault for making 
such a poor choice.”
Renda told The Daily in an email 
she decided to come forward with 
her allegations now because she 
feels it is important for the Univer-
sity community to know the details 
of Philbert’s alleged misconduct. 
“I feared that the University 
would decide to not provide any 
details about the kinds of pred-
atory behavior he was engaging 
in for over two decades,” Renda 
said. “The investigation has been 
ongoing for over six months 
without any substantive updates 
provided to the University com-
munity. The survivors and the 
broader University community 
deserve transparency from the 
University about what happened, 
how it was able to happen, and the 
steps they plan to take to ensure 
such gross abuses of power are not 
able to persist within the Univer-
sity’s ranks.”

2

Thursday, July 16, 2020
The Michigan Daily — michigandaily.com
NEWS

Three women speak 
out against Philbert

The recent tuition increase passed 
by the Board of Regents as part of the 
fiscal year 2020-21 budget for the 
University of Michigan has thrust the 
University’s $12 billion endowment 
into the spotlight. Students, Regents 
and parents alike have pointed to 
the money as a possible way to avoid 
increasing tuition on families that are 
struggling as a result of the COVID-19 
pandemic.
Put simply, the endowment is 
the pool of the assets given to the 
University by its donors — but the 
way these funds are used is anything 
but simple. Endowments are better 
understood not as a piggy banks, 
but as an actual bank in terms of 
the limits on appropriations of its 
seemingly ample funds and the way it 
generates income.
As of October 2019, 11,700 different 
funds made up the University 
Endowment Fund, and each of 
these individual funds represents 
the money given to the University. 
Among the first funds added to 
the endowment were the proceeds 
from the sale of land ceded to the 
University in the Treaty of Fort Meigs 
by three Native American tribes. 
Over time, through contributions and 
investment revenues, the Endowment 
Fund has grown to $12.7 billion as of 
June 30, 2019. 
However, not all of those funds can 
be spent at will. In the 2019 fiscal year 
financial statements, the University 

listed $4.47 billion in restricted 
endowed funds, with $2.38 billion in 
“funds-functioning-as-endowment,” 
a designation which holds the initial 
investment inviolate (meaning it can’t 
be spent in any way). These restricted 
funds are further split into expendable 
and non-expendable funds. The latter 
references the initial investment 
for endowed funds and the former 
represents both FFE and the growth 
of permanent endowments.
Outside of the restricted funds, 
the 
endowment 
also 
includes 
unrestricted reserves. These are 
funds that can be spent at the Regents’ 
discretion. The Regents have elected 
to distribute 4.5 percent of the 
endowment each year. The University 
explains this decision in an FAQ from 
the Office of Public Affairs.
“The 4.5 percent distribution rate 
helps to insulate the endowment from 
anticipated market volatility that 
includes lower investment returns 
and higher inflation,” the FAQ says. 
“It also ensures continued, steady 
support of university operations 
during uncertain economic times 
- including funding for student 
scholarships, faculty salaries and 
academic programs. The distribution 
from the endowment has steadily 
increased each year since 2003.”
Most schools generally spend 
between 4 and 5 percent of their 
respective endowment every year, 
according to Connor Murnane, a 
spokesman for the American Council 
for Trustees and Alumni (ACTA). 
At the University, this strategy of 
spending a little and investing the rest 
has led to handsome returns. Since 
2010, the fund has doubled in size and 
since 2000, nearly $5 billion has been 
distributed from the endowment. 

University’s $12B 
in funds explained

Read more at michigandaily.com

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The Michigan Daily (ISSN 0745-967) is published Monday through 

Friday during the fall and winter terms by students at the University 

of Michigan. One copy is available free of charge to all readers. 

Additional copies may be picked up at the Daily’s office for $2 per 

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After tuition increase, 
the endowment has 
come under question

More sexual misconduct 
allegations raised about 
former Provost

ENDOWMENT FAST FACTS

THE
ENDOWMENT
CONSISTS OF
THOUSANDS OF
INDIVIDUAL
ENDOWED
FUNDS.

ABOUT $7BN OF
THE
UNIVERSITY'S
ASSETS ARE
RESTRICTED BY
DONORS OR BY
LAW.

ENDOWED FUNDS
FINANCE
SCHOLARSHIPS,
BUILDINGS, AND
SOME
OPERATIONS.

THE UNIVERSITY
CAN SPEND 4.5%
OF THE FAIR
MARKET VALUE OF
THE ENDOWMENT
AS PART OF ITS
BUDGET EVERY
YEAR.

