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Financial Overview

FY2018 Financial Report 

The Institute achieved positive financial results for the fiscal year ended June 30, 2018 providing important fiscal resources to support its mission, vision, and strategic plans. The Institute used these resources to provide nearly $6.5 million of financial aid to students, enhance its academic programs, and provide increased support for research activities. 

Revenues and Expenses

Total operating revenues grew by $7.0 million from $50.9 million for FY2017 to $57.9 million for FY2018. Enrollment growth in the Institute’s academic programs increased net tuition and fees by $4.5 million. Grant revenues grew by $450,000 due to new federal grant awards received during FY2018.

Total operating expenses increased by $3.4 million from $48.1 million for FY2017 to $51.4 million for FY2018.  Instruction costs grew by $1.5 million to $28.8 million for FY2018 to support higher student enrollment levels and comprised 56% of FY2018 expenses.  Other expenses were incurred for research grants, to strengthen organizational structures, to increase institutional and academic support, and to advance the Institute’s mission and strategic plans.

Assets

Total assets increased by $12.6 million to $113 million as of June 2018.  The change was primarily due to increases in investments driven by changes in market value, and purchases of property and equipment for campus expansion.

Liabilities and Net Assets

Total liabilities increased by $1.0 million to $30.4 million as of June 2018.  The change was mainly due to changes in deferred revenue and student deposits partially offset by scheduled payments on long-term obligations.  Total net assets grew by $11.1 million to $81.5 million as of June 2018 due to operating results and non-operating investment and fundraising activities.

Complete financial statements are available upon request.

 

Statements of Financial Position:  June 30, 2018 and 2017 (in thousands of dollars)

 

 

Assets

2018

2017

Cash and equivalents

$8,736

$5,297

Student accounts receivable, net

260

297

Pledges receivable, net and contributions receivable

202

2,109

Other assets

1,945

1,358

Due from affiliates

-

1,059

Investments

42,960

36,444

Investments held in trust

3,726

3,726

Interest in the net assets of The Massachusetts General Hospital

29,782

27,991

Property and equipment, net

25,806

22,536

Total assets

$113,417

$100,817

Liabilities and Net Assets

 

 

Accounts payable and accrued expenses

$4,853

$4,611

Due to affiliates

742

-

Deferred revenues and student deposits

11,914

10,338

Long-term obligations

14,373

15,407

Total liabilities

30,356

29,389

Commitments and contingencies

 

 

Net assets

 

 

Unrestricted

58,279

47,650

Temporarily restricted

10,019

10,193

Permanently restricted

13,237

12,618

Total net assets

81,534

70,461

Total liabilities and net assets

$113,417

$100,817

 

Statements of Activities And Changes in Net Assets:  Years Ended June 30, 2018 and 2017 (in thousands of dollars)

 

 

2018

2017

Operating revenues

 

 

Tuition and fees

$56,182

$51,523

Less: Financial aid

6,449

6,279

Tuition and fees, net

49,733

45,244

 

 

 

Grant and contracts

2,291

1,841

Contributions used for operations

2,648

735

Investment income

1,739

1,660

Other revenue

1,511

1,292

Net assets released from restrictions

____

112

Total operating revenues

57,922

50,884

 

 

 

Operating expenses

 

 

Instruction

28,754

27,207

Institutional support

8,776

8,637

Research

2,326

1,845

Student services

4,080

3,294

Academic support

7,320

6,849

Facilities

229

236

Total operating expenses

51,485

48,068

Increase in net assets from operating activities

6,437

2,816

Nonoperating activities

 

 

Income (loss) from investments

1,318

407

Change in net unrealized appreciation on investments

2,278

5,418

Contributions

785

582

Other

255

247

Increase (decrease) in net assets from nonoperating activities

4,636

6,654

 

 

 

Increase in net assets

11,073

9,470

Net assets

 

 

Beginning of year

70,461

60,991

End of year

$81,534

$70,461