The University of Chicago’s consolidated net assets increased by $887.7 million during fiscal year 2014 to a total of $8.2 billion. The University ended the year with an excess of operating revenue over expenses of $22.5 million.
The balance sheet of the University as of June 30, 2014, grew when compared to the end of the previous fiscal year, with total assets increasing by $1.1 billion to $13.6 billion. The largest asset category, investments (primarily the endowment), achieved an annual return of 12.7 percent. Land, buildings, equipment, and books, the second largest asset category, increased by $515.7 million. The increase represents funds invested in new construction and capital renewal projects. The new construction was financed through gifts and debt proceeds. Total liabilities increased by $184.7 million to $5.4 billion. Balance sheet categories are shown in figure 1.
Net assets increased $887.7 million, from $7.3 billion to $8.2 billion, during fiscal year 2014. Approximately $158.0 million of this increase is attributable to the University's July 1, 2013, affiliation with the Marine Biological Laboratory (MBL) in Woods Hole, Massachusetts. Under this affiliation, the University became the sole member of MBL. The remaining increase was primarily driven by private gifts and investment gains associated with the University’s endowment.
Results of Operations
The $22.5 million excess of operating revenue over expenses was driven by operating revenue and expenses of approximately $3.5 billion. Increases in operating revenue over the prior year are primarily attributable to increased private gifts and patient care revenue. Increases in expenses are primarily due primarily to increases in supplies and services, compensation, and interest and depreciation costs associated with new construction, capital renewal projects, and other University-wide strategic initiatives. The components of operating revenue and expenses are shown in figures 2 and 3.
Audited Financial Statements
The University’s fiscal year 2014 financial statements were audited by KPMG LLP. The complete audited financial statements for fiscal year 2014 are available online at finserv.uchicago.edu/reporting/statements.shtml or by writing to Financial Services, The University of Chicago, 6054 South Drexel Avenue, Chicago, Illinois 60637.
The balance sheet, summary, and components of operating revenue and expenses have been excerpted from the audited financial statements.