ANN ARBOR, Mich.The University of Michigan remains financially healthy because of faculty and staff who maintain an "unyielding focus on the university's core missions as they strive to find new ways to contain costs."
That's how Timothy Slottow, U-M's executive vice president and chief financial officer, describes the university's finances in the 2011 Financial Report, approved today by the Board of Regents.
"As a result of their dedication in building on our strong foundation and tradition of excellence, we continue to have the resources to make strategic investments in the facilities, programs and people that make our institution one of the best public research universities in the world," he says in the report.
In her opening letter to the annual financial report, President Mary Sue Coleman said the university's strong financial position underscores U-M as a "vibrant and forward-moving research university with a deep public ethos and a laser focus on academic excellence."
Coleman added that "Michigan's prudent financial management and budget discipline, including significant cost-cutting and reallocation from lower to highest priorities, has enabled the institution to remain extremely competitive and operate with stability, even as we continue to wrestle with the country's economic downturn."
The university's consolidated financial statements of all three campuses were audited by the independent accounting firm PricewaterhouseCoopers LLP.
Among the highlights:
- The university continues to maintain the highest credit ratings from both Standard & Poor's (AAA) and Moody's Investor Services (Aaa).
- Total operating revenues, including all three campuses and the health system, totaled $5.65 billion.
- Total net assets increased by $1.6 billion during the year to $10.9 billion, primarily due to an increase in net investment income.
? Total research spending for the year grew 8.5 percent to $1.2 billion.
? The university's endowment grew to $7.8 billion.
? Donors made gifts of cash and pledge payments totaling $273 million, an increase of 7 percent over the previous year.
? The number of donors increased by 5,000 to a total of 116,469.
The complete report will be posted to the university's website at: http://www.finops.umich.edu/reporting/annualreports