PEBT
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.
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