- PDF download of this year's financial details.
- Street medics are alive and well and doing their thing around the world.
- One of the biggest instruments in the world lives right at BU.
- How an app can help you practice an ancient African religion.
- Joseph P. Mercurio, executive vice president, retired after 38 years at BU.
Equilibrium. Refinement. Focus. Those are words you can apply to the University’s financial situation in FY 2011. Indeed, the financials really kind of bucked the national trend of the past few years and achieved a strong and stable operating performance.
That’s a direct result of the proactive steps the University took during the recession of 2008 and the years afterward to slow capital spending, increase liquidity, and identify significant, permanent areas of savings across the University. Here are some of the fiscal highlights:
- For the year ending June 30, 2011, the endowment had a return of 19.1 percent and a market value of $1.19 billion—an all-time high.
- Operating revenues for the year increased $58 million to $1.65 billion, driven by a growth in student tuition and fees primarily due to the large freshman class and growth in auxiliary revenues.
- Consistent with the growth in operating revenue, operating expenses in support of education and research increased by $63 million to $1.55 billion.
- Sensitive to the economic environment, the University kept the rise in undergraduate tuition low at 3.65 percent, the smallest since 1970, while increasing the budget for undergraduate financial aid by almost 7.5 percent to $188.2 million.
- Total expenditures supporting financial aid increased from $261 million to $279 million.
- This year a major capital expenditure of $21.3 million was associated with the procurement and development of the University’s new software system for finance, procurement, and human resources through the BUworks project. Phase 1 of the $60 million project launched on June 29, 2011.
- Additional capital expenditures were related to the construction of the $65 million Center for Student Services and the $33 million Medical Student Residence, which are both expected to be completed in the summer of 2012. The University also approved $142 million for the School of Law expansion and renovation.
- The University hired 45 new faculty on the Charles River Campus and 48 on the Medical Campus during the 2010/2011 academic year.
- As you read in the Research/Learning section, research is at the core of BU’s success. In FY 2011, our sponsored program awards totaled $356.3 million, an anticipated decrease from last year, with funding from the American Recovery and Reinvestment Act (ARRA) ending.
“I believe that the future success and impact of Boston University as a great private research university will be interwoven with our presence as a truly global university in the 21st century.”Robert A. Brown, President
Magnificent Results from Alumni
One area of our finances in which a lot did happen in this year is our development effort:
- Total cash giving rose 5.1 percent to a record $89.5 million, with the largest gift being $5 million from Rajen Kilachand (GSM’74).
- New pledges totaled almost $66 million, including a $15 million pledge from Trustee Bahaa Hariri (SMG’90) to establish the Rafik B. Hariri Institute for Computing and Computational Science & Engineering.
- Trustee giving rose 61.7 percent to a record $13.3 million with 100 percent of the Board participating.
- The Annual Fund set a record of $7.85 million, a 4 percent increase.
- The number of alumni donors rose by 2,745, an increase of 12 percent.
- Corporate support rose 7.6 percent to $12.6 million.
- Foundation support increased 27 percent to $23.2 million.
- Fundraising records were set in the Schools of Law, Medicine, Social Work, Metropolitan College, and WBUR.
Looking Forward to Next Year
The economic downturn and potential impact on tuition/enrollment and research can be mitigated by a diverse revenue stream and global reach:
- BU’s Global Programs has identified more than 250 activities in 80 countries and Antarctica, representing more than 70 departments and academic units across 14 schools and colleges.
- International applications have grown annually by double-digit percentages, with almost 6,000 applicants for the fall 2011 freshman class. International enrollment for the fall freshman class makes up 16 percent of the overall class.
The takeaway? We had a good year. For those of you inclined to be left-brained, please look at our financial statements.