University reports fiscal year 2008 financial results
Stanford University reported its financial results for fiscal year 2008 (FY2008), which ended Aug 31, 2008. Consolidated net assets increased $917 million to end the year at $24.9 billion. Consolidated results include the university, Stanford Hospital and Clinics and Lucile Packard Children's Hospital. Net assets include the value of the endowment, expendable funds, plant facilities and other assets, less debt and other liabilities. Net assets of the university, excluding the hospitals, increased $733 million, largely as a result of generous donor support. The university received gifts of $785 million in FY2008, as reported by the Office of Development. The net assets of the hospitals, which are each separate legal entities, increased $184 million.
The university's endowment remained relatively unchanged at $17.2 billion as of Aug. 31. Payout from the endowment in support of operations increased 45 percent to $882 million, following a decision by the university's trustees to raise the target endowment payout rate. Endowment income supported approximately 28 percent of operating expenses in FY2008, compared to 21 percent in FY2007.
Notwithstanding the solid financial results achieved in FY2008, the collapse of global investment markets since fiscal year-end makes for a more challenging outlook. "We are now faced with a substantially different economic climate," said Randy Livingston, vice president for business affairs and chief financial officer. "We will be making prudent adjustments to the budget, while staying focused on our core education and research missions and preserving the excellence we have achieved as an insttution."
FY 2008 results were reported to the university's Board of Trustees on Dec. 8 and 9. The results will be summarized on the Stanford bondholder web pages (http://bondholder-information.stanford.edu) and distributed through Stanford's annual report, which is scheduled to be published in February.
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.