Financial Results for Fiscal Year 2012
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Overview
The University of Chicago’s consolidated net assets decreased by $196.76 million during fiscal year 2012 to a total of $6.93 billion. The University ended the year with an excess of operating revenue over expenses of $79.21 million.
Net Assets
The balance sheet of the University as of June 30, 2012, grew when compared to the end of the previous fiscal year, with total assets increasing by $247.45 million to $11.95 billion. The largest asset category, investments (primarily the endowment), achieved an annual return of 6.8 percent. Land, buildings, equipment, and books, the second largest asset category, increased by $270.68 million. The increase represents funds invested in new construction and capital renewal projects. The new construction was financed through gifts and issuance of debt. This new debt accounts for the majority of the increase in liabilities. Balance sheet categories are shown in figure 1.
Net assets decreased $196.76 million, from $7.13 billion to $6.93 billion, during fiscal year 2012. This decrease was primarily driven by positive operating results, gift pledges, and nonoperating gifts being offset by losses associated with the University’s postretirement benefit plans, external debt obligations, and investments.
Results of Operations
The $79.21 million excess of operating revenue over expenses was driven by operating revenue of $3.13 billion less operating expenses of $3.05 billion. Increases in operating revenue over the prior year are primarily attributable to increased patient care revenue. Expenses increased at a greater pace than revenue due primarily to increases in interest, depreciation, and compensation costs associated with new construction and 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 2012 financial statements were audited by KPMG LLP. The complete audited financial statements for fiscal year 2012 are available 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.
Consolidated Statements of Activities (PDF)
Consolidated Balance Sheets (PDF)
