Board Decisions – Winter 2010

The members of USP's Board of Trustees and its Committees met at USP Headquarters in Rockville, MD on January 10-11, 2010. This was the 21st meeting of the Board during this cycle. The following is a summary of the discussions and actions that occurred at the January Board and Board Committee meetings.

USP 33-NF 28 Recall

Significant discussions took place regarding the January 8, 2010 recall of USP 33-NF 28. The Board reviewed events leading to the recall and the actions being taken to address the issue and determine the factors that contributed to the situation necessitating the recall. The Board ratified the decision to recall the publication. The Board formed a Task Force composed of volunteers drawn from the Board, Council of Experts, and Convention to review Senior Management Group's evaluation of the situation, including its recommendations for corrective actions.

International Activities

The Board has conducted a series of discussions with management over the last few meetings regarding the need for expansion of the existing site in Hyderabad, India. At the January 11th meeting, the Board reviewed and approved the expansion proposal presented by staff, including reasons for the expansion, financing terms, site plans, and future activities for the site.

2010 USP Convention

The Board continued discussions regarding transition to the new Board. New members will be elected at the Convention in April. At the current Board's last meeting in June, the newly elected Board members will attend for orientation, observation, and informal discussion. The new Board will take office on July 1st and hold its first meeting in September 2010. Details of the Convention program and specific events related to the current Board were also discussed.

Board Decisions – Fall 2009

The members of USP's Board of Trustees and its Committees met in Toronto on September 20-21, 2009. This was the 20th meeting of the Board during this cycle and was followed by the Annual Scientific Meeting, meetings of the Council of Experts and Council of the Convention, and other meetings as well. The following is a summary of the discussions and actions that occurred at the September Board and Board Committee meetings.

2010 USP Convention

The Board focused at the September meeting on preparations for the April 2010 Convention and advanced key issues for the new Board to consider as it takes office on July 1, 2010, following the April elections. The Board also established a transition plan for information and vision sharing between the exiting and newly elected Boards and approved the version of the Constitution and Bylaws that will be presented to the Convention membership for approval at the April Convention meeting.

Policy Updates

During the Board Committee meetings, the Board considered current USP policies, including the Whistleblower and Code of Ethics policies. These policies were approved by the Audit Committee in September 2005, and are being reviewed again now to ensure consistency with the newly updated USP Rockville Staff Handbook and current best practices. The Board also reviewed and approved revised investment and reserve policies, which reflect a policy of preservation of capital while still providing the ability for the organization to pursue opportunities for growth and expansion. The reserve policy is closely tied to the existing bond covenants, which continue to be met or exceeded, indicating USP's continued secure financial position in times of economic difficulty.

Retirement Plan and Vendor

The Board approved a change in retirement plan vendors to establish a retirement plan that provides improved administration and greater flexibility in investment options.

Board Decisions – Spring – Summer 2009

The members of USP's Board of Trustees and its Committees met in Rockville February 28-March 2 and June 7-8, 2009. These were the 18th and 19th meetings of the Board during this cycle. The following is a summary of the discussions and actions that occurred at these meetings.

FY'10 Budget

The Board reviewed and approved the budget for Fiscal Year 2010. The Board expressed its appreciation for fiscal restraint exhibited by USP's employees and management in response to the economic downturn, both during FY'09 and in the budgeting process for the upcoming year.

Organizational Growth and Expansion

The Board approved financing for the purchase of land adjacent to the current headquarters site in Rockville, MD. The financing is contingent upon putting the land to use within the next two years. Although major construction on the new land is not expected to take place for several years, initial improvements, such as repaving to create surface level parking, are expected to be implemented.

2010 Convention Membership Meeting

The planning process for the next Convention membership meeting in April 2010 is well underway. The Board approved a number of items related to Convention Committees and Honorary Members. The Board also began discussing plans for the transition between the current Board and the Board to be elected next April, with the intention of creating a seamless handoff of leadership to guide USP into its next five year cycle.

Board Decisions – Winter 2008

The members of USP's Board of Trustees and its Committees met in Rockville December 7-8, 2008. This was the 17th meeting of the Board during this cycle. The following is a summary of the discussions and actions that occurred at the December Board and Board Committee meetings.

Budget Recast

The Board during this meeting reviewed and approved proposed changes to the USP budget in light of external financial events related to USP's bond financing and its investment portfolio. A segment of the revisions to the budget included realignment of USP activities consistent with the Board's new strategic plan, and associated staffing changes that became effective on December 1, 2008. USP's core compendial and business activities remain solid, providing a level of security that many organizations are not privileged to have in this difficult economic environment.

Board Leadership

The meeting on December 8, 2008, marked a change in leadership for the Board. Dr. John Mauger, who has served as Chair since the Board's election in April 2005, has stepped down as Chair. Effective as of the December meetings, Dr. Duane Kirking assumed the position of Chair of the Board of Trustees. Dr. Kirking has a long history with USP prior to his service on the Board, including serving within USP's Council of Experts in the drug information area.

The Board acknowledged and commended the extraordinary efforts of all of USP's staff and the work of the Council of Experts, the Council of the Convention, and other volunteer bodies in advancing our goal of improving the quality and safety of medicines and foods and their use worldwide.

Board Decisions – Spring 2008

The members of USP's Board of Trustees and its Committees met for the 14th Board meeting of the 2005-2010 cycle on March 1-3, 2008 in Rockville, MD. The meetings took place as part of the third annual Spring Governance Meeting and also included joint meetings with the Council of Experts Executive Committee and the Council of the Convention. The Spring Governance Meeting concluded with the inaugural celebration of the new USP Headquarters building. The following is a summary of the discussions and actions that occurred at the March Board and Board Committee meetings.

Organizational Growth and Expansion

The Board reaffirmed its decision to allow the purchase of two acres of land in Rockville adjacent to the current headquarters site and selected a development plan (although there are no immediate plans to begin construction if the purchase is completed). The Board also discussed the previously approved plans for expansion of the India site as well as the status of the development of the Brazil site, which is scheduled to be inaugurated in August 2008. The Board continues to be supportive of USP's international growth.

Strategic Plan

The Spring Governance Meeting provided an opportunity for USP's three governing bodies to discuss the strategic plan (drafted by the Board earlier this year) and its implications for USP's future directions. The Board of Trustees is expected to finalize the draft Strategic Plan in the fall of 2009, taking into account the input received from the Council of the Convention and the Council of Experts.

Board Decisions – Winter 2007

The members of USP's Board of Trustees and its Committees met for the 13th Board meeting of the 2005-2010 cycle on December 9-10, 2007 in Rockville, MD. This was the first Board meeting held in the new USP building.

Organizational Growth and Expansion

To allow for continued growth and development, the Board approved the expansion of the USP-India site. The expanded site will consist initially of a 40,000 square foot office and laboratory building to be constructed in the same area as the current site (the ICICI Knowledge Park in Hyderabad). This will allow USP to substantially increase its staff in India so that the site can perform additional lab testing work, expand its marketing and sales efforts, and continue to build USP's presence and activities in India and surrounding areas. The new site is expected to be operational in the first half of calendar year 2009.

The Board also approved the acquisition of two acres of land in Rockville (adjacent to the current USP headquarters building north on Twinbrook Parkway). As the surrounding areas of the Twinbrook Parkway corridor experience rapid growth and development in the next few years, this purchase will allow USP to preserve the ability to expand in its current location to meet the growing needs of the organization.

Appointment of New Board Members

After careful consideration of a number of qualified candidates, the Board approved the appointment of Judith Oulton as an At-Large Member of the Board of Trustees. Dr. Oulton is the Chief Executive Officer of the International Council of Nurses, headquartered in Geneva. She joins Dr. Rita Colwell, who was appointed as an At-Large Member in October 2007, as replacements for members who resigned from the Board earlier in 2007. Dr. Colwell is Chairman of Canon US Life Sciences, Inc. and Distinguished Professor at the University of Maryland at College Park and at Johns Hopkins University Bloomberg School of Public Health. Both Dr. Oulton and Dr. Colwell bring to the Board substantial international public health experience, and the Board and USP management are pleased to welcome them as new Board members.

The Board also made substantial progress on concepts for a new strategic plan that can guide the organization into the next cycle.

Board Decisions – Spring 2007

The members of USP's Board of Trustees and its Committees met for the ninth Board meeting of the 2005-2010 cycle on April 15-16, 2007 in Scottsdale, Arizona. The meetings took place as part of the second annual Spring Governance Meeting. The Spring Governance Meeting provides an opportunity for members of USP's governing and advisory bodies (Council of Experts, Council of the Convention, and Board of Trustees) to report on activities conducted during the past year and discuss a shared vision for the future as we prepare for the 2010 Convention.

In addition to approving a restructured compensation and benefit plan for USP staff, the Board made another landmark decision about USP's international sites. Based on a recommendation from the International Sites Committee of the Board, which formed in 2006 to work with USP staff to oversee the development of new sites and the operation and growth of existing ones, the Board approved the development of a site in Brazil, with a proposed inauguration date in fiscal year 2009 (July 2008 – June 2009). In approving the new site, the Board recognized and congratulated USP on its remarkable success in developing and establishing the India and China sites.

Board Decisions – Fall 2006

The members of USP's Board of Trustees and its Committees met for the seventh Board meeting of the 2005-2010 cycle on September 24-25, 2006 in Denver, Colorado. The meetings took place prior to the USP Annual Scientific Meeting, which included opening remarks from USP leadership, including Dr. Darrell Abernethy, Convention President, and Dr. John Mauger, Board Chair.

International Sites

In recent years, USP's international activities have flourished and have led to the development of USP's international sites in India and China as well as its sales office in Basel, Switzerland. Board oversight for our international sites is provided through a newly formed International Sites Committee of the Board. This Committee, which met for the first time in Denver, will work with USP staff to oversee the development of new sites and the operation and growth of existing ones.

Drug Information

The creation of Information Expert Committees and ongoing activities related to the Medicare Model Guidelines have provided many opportunities for USP to re-engage in the drug information arena. At the most recent Board meeting, members of the Board Task Force who participated in the August 21-22, 2006 second drug consultation meeting and meetings with the new Information Expert Committees shared their experiences and viewpoints about USP's developing information initiatives. As staff continues to explore potential drug information options, the Board expects to have more discussion of the opportunities that lie ahead for the organization.

Communications/Public Affairs at USP

USP is focusing on strengthening relationships with stakeholders, expanding our public relations activities, and increasing our focus on government affairs. A representative from the Public Affairs Council has conducted interviews with selected USP staff, Board members, and other public health groups to develop an initial report regarding the organization's current image and how to broaden awareness of our mission to advance our goal of providing good pharmaceutical care for all.

Food Chemicals Codex

In August 2006, USP announced that it will assume responsibility for publishing and distributing future editions of the Food Chemicals Codex, a compendium of standards that promotes quality and safety of food additives such as preservatives, flavoring, coloring, and nutrients. The Board was very supportive of this endeavor, and will continue to support staff efforts to foster the growth and success of the publication.