Financial Results for Fiscal Year 2011


The consolidated financial results for the 2011 fiscal year reflect the continued response of the University of Chicago and the University of Chicago Medical Center to the impact of economic challenges in recent years. The financial performance reflects improving economic conditions and actions taken internally during the past three fiscal years by both entities.

The University’s consolidated financial position has improved in fiscal year 2011. Net assets increased by $1.05 billion during the year to a total of $7.13 billion. The University ended the year with an excess of operating revenue over expenses of $127.08 million. Strong operating results, investment gains, and receipt of private gifts were key contributors to the improvement in overall financial position.

Net Assets

The balance sheet of the University of Chicago as of June 30, 2011, is stronger when compared to the end of the previous year, with total assets increasing by $1.34 billion to $11.71 billion during the year. The largest asset category, investments (primarily the endowment), achieved an annual return of 18.8 percent. Land, buildings, equipment, and books—the second largest asset category—increased by $293.28 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.

The increase in net assets of $1.05 billion reflects continued growth in net assets over the past two years (see figure 2). Net assets increased from $6.08 billion to $7.13 billion during the past fiscal year. This increase was primarily driven by:

  • Positive operating results of $127.08 million
  • Gift pledges and other nonoperating gifts of $141.18 million
  • Investment gains (primarily endowment) of $751.68 million

Results of Operations

The $127.08 million excess of operating revenue over expenses was driven by operating revenue of $3.06 billion less operating expenses of $2.93 billion. Increases in operating revenue over the prior year are attributable to increased government research grants, an increase in endowment payout, and increases in private gifts. Expenses increased at a slightly greater pace than revenue due primarily to increases in benefit costs associated with the University’s defined benefit pension plans and an increase in interest associated with increased debt used to finance new construction and capital renewal projects. The components of operating revenue and expenses are shown in figures 3 and 4.

Audited Financial Statements

The University’s fiscal year 2011 financial statements were audited by KPMG LLP. The complete audited financial statements for fiscal year 2011 are available online or by writing to Financial Services, The University of Chicago, 6054 South Drexel Avenue, Chicago, Illinois 60637.

The balance sheet and summary and components of operating revenue and expenses have been excerpted from the audited financial statements.

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