PEBT
Financial Overview FY21
Mass General Brigham Incorporated (formerly known as Partners HealthCare System, Inc. (PHS)) is the sole governing member of The Massachusetts General Hospital (MGH). MGH is the sole governing member of the Institute. The Institute's activity is included in both the Mass General Brigham Incorporated financial statement and in the Mass General Hospital and Affiliates financial statement.
- Mass General Brigham, Consolidated Financial Statements (With Consolidating Financial Information) September 30, 2021 and 2020
- Massachusetts General Hospital, Consolidating Financial Statements September 30, 2021
FY2021 Financial Report
The Institute’s FY2021 financial performance reflects a combination of strength in the academic programs and initial investments in our future growth – ENRICH programs.
In FY2021, the Institute invested $2.8 million in the ENRICH programs to optimize enrollment capacity in current programs, identify potential new areas for expansion, enhance continuing and professional development, redesign the clinical experience and support innovation.
As a result, FY21 actual net income from operations was $2.3 million, which reflects our continuing focus on 1) enhancing academic programs; 2) investing in the Institute’s vision, mission, and strategic priorities; 3) providing increased support for research activities, and 4) sustaining our financial strength.
Revenues and Expenses
Total FY2021 operating revenues were $66.9 million compared to $59.7 million from the prior year. Tuition and fee revenue increased by $5.3 million due to stronger enrollment. Direct research and direct academic revenue increased by $1.7 million to $5.6 million from $3.9 million in FY2021 due to an increase in research activities and Higher Education Emergency Relief Fund (HEERF) related spending.
Total operating expenses increased by $4.9 million from $59.7 million for FY2020 to $64.6 million for FY2021. Institutional support and academic support increased by about $3 million in FY2021, which reflected the investment in the ENRICH programs. Instructional costs maintained its level of spending similar to FY2020, approximately 51% of overall expenses. Increase in institutional support included ENRICH expenses of $2.1 million. Increase in academic support included expenditures to recruit principal investigators and IT related hardware and software for academic programs and students.
Assets
Total assets increased by $21.0 million from $170.4 million as of September 2020 to $191.4 million as of September 2021. The increase in assets was primarily due to increase in cash and equivalents and in investments driven by the market performance and donations.
Liabilities and Net Assets
Total liabilities of $75.6 million as of September 2020 increased by $1.1 million to $76.7 million primarily driven by an increase in year-end accruals for expenses and deferred revenues and student deposits. Total net assets of $94.8 million as of September 2020, increased by $19.9 million to $114.7 million as of September 2021 due to favorable operating results and changes in investment values and fundraising activities.
Balance Sheets: September 30, 2021 and 2020 (in thousands)
2021
2020
Assets
Current assets:
Cash and equivalents
$19,019
$10,474
Investments
43,697
36,304
Current portion of investments limited as to use
6,427
4,499
Research grant receivable, net
464
587
Other current assets
2,614
2,485
Total current assets
72,221
54,349
Investments limited as to use, less current portion
6,558
5,898
Long-term investments
6,707
5,977
Interest in the net assets of affiliates
40,232
32,085
Property and equipment, net
27,790
30,882
Right-of-use operating lease assets
37,522
40,980
Other assets
366
224
Total assets
$191,396
$170,395
Liabilities and Net Assets
Current liabilities:
Current portion of notes payable to affiliates
$1,016
$1,193
Accounts payable and accrued expenses
19,668
16,822
Accrued employee compensation and benefits
1,951
1,409
Current portion of operating lease obligations
4,775
-
Unexpended funds on research grants
221
187
Due to affiliates
3,395
1,403
Total current liabilities
31,026
21,014
Other liabilities
Accrued other
2,650
2,874
Operating lease obligations, less current portion
33,362
41,033
Notes payable to affiliates, less current portion
9,657
10,674
Total liabilities
76,695
75,595
Net assets
Unrestricted
84,804
70,352
Donor restricted
29,897
24,448
Total net assets
114,701
94,800
Total liabilities and net assets
$191,396
$170,395
Statement of Operations: Years Ended September 30, 2021 and 2020 (in thousands)
2021
2020
Operating revenues
Tuition and fees
$ 65,170
$ 59,691
Less: Financial aid
7,732
7,598
Tuition and fees, net
57,438
52,093
Direct academic and research revenue
5,657
3,902
Indirect academic and research revenue
1,284
1,045
Other revenue
2,569
2,699
Total operating revenues
66,948
59,739
Operating expenses
Instruction
33,221
32,822
Institutional support
12,598
10,722
Research
4,949
3,721
Student services
3,497
3,295
Academic support
10,189
8,963
Facilities
178
175
Total operating expenses
64,632
59,697
Income from operations
2,315
42
Nonoperating gains (expenses)
Income from investments
13,227
3,278
Other nonoperating (expenses) income
(1,066)
(1,497)
Academic and research gifts, net of expenses
(52)
1,073
System development funding
(14)
(2)
Total nonoperating gains (expenses), net
12,095
2,852
Excess of revenues over expenses
14,410
2,894
Other changes in net assets:
Transfers from affiliates
42
186
Increase(decrease) in unrestricted net assets
$ 14,452
$ 3,080
Statements of Changes in Net Assets: Years Ended September 30, 2021 and 2020 (in thousands)
2021
2020
Unrestricted
Net assets, beginning of year
$70,352
$67,272
Increases (decreases)
Income (loss) from operations
2,315
42
Income (loss) from investments
13,227
3,278
Other nonoperating (expenses) income
(1,066)
(1,497)
Academic and research gifts, net of expenses
(52)
1,073
System development funding
(14)
(2)
Transfers (to) from affiliates
42
186
Change in unrestricted net assets
14,452
3,080
Net assets, end of year
$84,804
$70,352
Donor Restricted
Net assets, beginning of year
$24,448
$23,739
Increases (decreases)
Income (loss) from investments
4,322
518
Other nonoperating income (expenses)
448
144
Other changes in net assets
679
47
Change in donor restricted net assets
5,449
709
Net assets, end of year
$29,897
$24,448