Stanford University

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CONTACT: Kate Chesley, University Communications, (650) 725-3697;

Relevant Web URLs: Stanford University Consolidated Statements of Financial Position (pdf file)

Stanford University reports FY 2003 financial results

Stanford University reported an operating surplus of $46 million in the fiscal year ended Aug. 31, 2003 (FY03), compared to a $17 million deficit in the previous fiscal year. The Stanford Hospital & Clinics (SHC) reported an excess of revenues over expenditures of $36 million. The Lucile Packard Children’s Hospital (LPCH) reported an excess of revenues over expenses of $60 million. The university and hospitals together generated an operating surplus of $142 million in FY03, compared with $34 million in FY02.

FY03 results were reported to the university’s board of trustees on Dec. 8. The results are summarized on the Stanford bondholder web pages ( and will be widely distributed through Stanford’s annual report of financial results, expected to be published in February.

Stanford’s consolidated net assets increased $1.2 billion for the year to end the year at $12.2 billion, the largest net asset balance recorded to date. The increase was due in large part to investment performance during the last half of the fiscal year, which represented a marked turnaround from the negative investment returns of the prior two and a half years. Consolidated net assets includes the value of endowment, expendable funds, plant facilities and other assets, less debt and other liabilities for the university and hospitals.

Following the deficit in FY02, university management expected FY03 to be another difficult year. At the beginning of FY03, the university implemented steps to moderate expenditure growth, including a staff hiring freeze and operating budget reductions. These efforts, combined with strong investment performance, higher levels of research activity and continued donor support, led to the $46 million surplus.

Randy Livingston, vice president for business affairs and chief financial officer, warned that despite the improvement in operating results in FY03, the university anticipates financial challenges in FY04 and subsequent years. Among those challenges are increasing health care costs for employees and retirees, continued high demand for financial aid, an anticipated flattening of federal research funding, highly volatile financial markets and costs associated with the opening of new facilities.



Information in this press release contains statements that, to the extent they are not recitations of historical fact, may constitute “forward-looking statements.” In this respect, the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe” and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the university’s business and financial results could cause actual results to differ materially from those stated in the forward-looking statements.


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