FY2022 Financial Report
The Institute’s FY2022 financial statements reflect its continuation of investment in the growth of academic programs and research activities. However, the delayed approval from the Department of Higher Education for the new master's programs had a negative impact on the Institute’s ability to market and recruit students in FY2022. In addition, $1.4 million in accelerated depreciation expense from one building also contributed to a negative operating loss of $0.4 million as of September 30, 2022.
Statement of Financial Position
The Institute’s balance sheet reflects higher liquidity and a strong balance among asset classes: total assets were $167.7 million as of September 30, 2022, with $17.2 million in cash and short-term investments, $48.0 million in the institution’s endowment, and $25.2 million in property and equipment.
Total assets decreased by $23.7 million from $191.4 million as of September 2021 to $167.7 million as of September 2022, which is primarily due to the decrease in investments driven by the current market performance. The institute strives to maintain high cash and cash equivalent balances.
Total liabilities of $76.7 million as of September 2021 decreased by $6.9 million to $69.8 million as of September 2022, primarily driven by a decrease in operating lease obligations and year-end accruals for expenses.
Total net assets of $97.9 million as of September 30, 2022 showed a decrease of $16.8 million from FY2021 year end, primarily due to unfavorable changes in investment values.
Operating Results
Total FY2022 operating revenues grew by $2.7 million to $69.7 million from $66.9 million in the prior fiscal year. Net tuition and fee revenue increased by $1.6 million due to an increase in tuition revenue offset by higher financial aid. Direct research and direct academic revenue increased by $0.2 million to $5.9 million in FY2022 from $5.7 million in FY2021 due to increase in research activities and Higher Education Emergency Relief Fund (HEERF) related spending.
Total operating expenses increased by $5.4 million from $64.6 million for FY2021 to $70.0 million for FY2022. Instruction increased by $5.6 million in FY2022, which reflected the continued investment in the academic programs. Instructional support decreased its level of spending by $0.7 million compared to FY2021, as the initial investment in the academic programs’ growth were recorded under Institutional Support in FY2021 where the majority of such investments were recorded under Instructions starting in FY2022. Research expenses increased by $0.5 million which were offset by their related increase in revenue, while other areas remained consistent with the prior year.
Non-Operating Results in Without Donor Restrictions Net Assets
Total FY2022 non-operating loss was heavily impacted by the current market performance. Compared to an income from investment of $13.2 million FY2021, investments were at a loss of $11.4 million in FY2022. Increase in the Academic and research gifts was primarily due to meeting the time restrictions of a donor restricted gift at the year end.
Looking Forward
In FY2023, the Institute continues its effort on improving operating efficiencies, aligning resources with the Institute’s strategic plan to guarantee its superior service to students and outstanding academic deliveries.