December 15, 2006
Stanford University reports FY 2006 financial results
Stanford University reported growth of 9 percent in both revenues and expenses in fiscal year 2006 (FY 2006), which ended Aug. 31. Revenues were $2.9 billion, up from $2.6 billion in FY 2005. Expenses totaled $2.7 billion, compared with $2.5 billion in FY 2005.
In addition, revenues for the Stanford Hospital and Clinics were $1.5 billion, and expenses were $1.4 billion. The Lucile Packard Children's Hospital had total revenues of $505 million, with expenses totaling $462 million.
The consolidated operating results, along with investment performance and donor support, contributed to an increase in consolidated net assets of $3 billion in FY 2006 to end the year at $19.9 billion. Consolidated net assets includes the value of the endowment, expendable funds, plant facilities and other assets, less debt and other liabilities for the university and hospitals. The university's endowment was $14.1 billion as of Aug. 31, 2006.
The financial performance of the university and hospitals enables Stanford to advance its mission of teaching and research. In particular, Stanford is investing in multidisciplinary approaches to address global challenges, focusing on human health, environmental sustainability and international peace and security. The university also continues to offer outstanding health-care services at its widely recognized hospitals and clinics.
Randy Livingston, vice president for business affairs and chief financial officer, said that, despite the university and hospitals' strong financial performance, challenges persist—among others, the continued tightening of federally sponsored research funding, the ability to attract and retain top faculty and senior staff by providing affordable housing, and the need to renovate and invest in new facilities.
FY 2006 results were reported to the university's Board of Trustees on Dec. 11. 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.