Financial Results for Fiscal Year 2008

Overview

The 2008 fiscal year showed strong financial results for the University of Chicago despite the challenges created by the current national and global economic climate. The fiscal year 2008 financial statements include the financial activity of both the University of Chicago and the University of Chicago Medical Center.

The University strengthened its overall financial position relative to one year ago. Net assets increased by $116.16 million during the year, and now total $7.28 billion. The University ended the year with an excess of operating revenue over expenses of $88.72 million. The strong operating results and continuation of significant support from alumni and other donors, despite a weakening economy, allowed the University to continue making strategic investments in programs, buildings, and initiatives that support its mission.

The following excerpts from the audited financial statements illustrate the University’s financial position, presented in accordance with generally accepted accounting principles.

Net Asset Growth

The balance sheet of the University of Chicago is stronger than it was at the end of the previous year, with total assets increasing by $204.91 million to $10.70 billion at the end of the fiscal year. Net assets increased from $7.17 billion to $7.28 billion during this period. The largest asset categories are cash and investments (primarily the endowment), and land, buildings, equipment, and books. Balance sheet categories are shown in figure 1.

The net asset growth of $116.16 million during the fiscal year continued a five-year trend of strong financial performance (see figure 2). This increase in net assets is a function of:

• An excess of operating revenue over expenses of $88.72 million
• An increase in pledges and other non-operating gifts of $237.02 million
• A decrease in market value of investments net of endowment payout of $85.09 million
• Other decreases of $124.49 million

The $88.72 million excess of operating revenue over expenses is driven by operating revenue of $2.68 billion less operating expenses of $2.59 billion. The components of operating revenue and expenses are shown in figures 3 and 4.

Audited Financial Statements

The consolidated balance sheet and statement of activities have been excerpted from the audited financial statements.

The University’s fiscal year 2008 financial statements were audited by KPMG LLP, and an “unqualified” opinion was rendered. The complete audited financial statements for fiscal year 2008 are available online (PDF) or by writing the Office of the Comptroller, 1225 East 60th Street, Chicago, Illinois 60637.

Consolidated Statement of Activities (PDF)
Consolidated Balance Sheet (PDF)