A return of study-abroad participants to near pre-pandemic levels, record cash giving from donors and the successful conclusion of the initial Diversity, Equity and Inclusion Five-Year Strategic Plan are among the highlights in the University of Michigan’s annual report.
The report for the 2021-22 fiscal year, made available Dec. 21 in a digital format, shows U-M’s financial position remains strong.
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In his introductory message, President Santa J. Ono credited “thousands of people — faculty, students, staff, alumni and so many others — who embody the commitment to excellence that keeps this institution performing at such a high level.”
“Across our three campuses, more than 65,000 students are pursuing their academic goals and earning their degrees in a wide breadth of disciplines,” said Ono, who began his term as U-M’s 15th president in October.
“At Michigan Medicine, our health care professionals handled more than 2.6 million patient clinic visits in the last year. The university’s research activity during FY 2022 generated 433 new inventions and 16 startup companies and ranged in scope from genetic data accessibility to internet interfaces for the visually impaired.
“In short, the University of Michigan is thriving.”
In addition to messages from university leaders, the report includes highlights from the year, awards and honors, major projects and financial statements. The report covers the previous fiscal year, which ran from July 1, 2021, to June 30, 2022.
Some of the many individual items in the report include:
- U-M was awarded a five-year, $53 million renewal agreement from the federal government to continue and expand the Cooperative Institute for Great Lakes Research, with the goal of helping to conserve and manage the region’s natural resources.
- The Innovation and Technology Center, a building designed for teaching, collaborating and inspiring innovators, is being built on the UM-Flint campus. The U.S. Economic Development Administration awarded a $3.8 million CARES Act Recovery Assistance grant to build the facility. The grant will be matched with $4.9 million in additional funds from university donors.
- A $1.44 million National Science Foundation award will help UM-Dearborn create a STEM Scholars program to bridge a gap in science fields among low-income, high-talent students. The program began its first cohort in fall 2022.
In his message, Thomas Baird, vice president for development, reported that donors gave a record $515 million in total cash gifts for the 2021-22 fiscal year. Gifts to support students, such as scholarships, fellowships and student success programs, totaled a record-setting $233 million.
“The giving was widespread across the university, with generous gifts from donors at every level,” Baird wrote. “Almost 100,000 donors gave gifts of $25,000 or less, and 125 donors gave $1 million or more.”
Notable gifts included a $40 million endowment from the Fred and Judy Wilpon Family Foundation for the Kessler Family Scholars program, which supports first-generation college students in LSA. Additionally, James Grosfeld, former chairman and chief executive officer of PulteGroup Inc. made an $11.5 million gift to Michigan Medicine’s Kellogg Eye Center.
“We are grateful for their confidence in the university’s mission and purpose,” Baird wrote. “That steady support carries us through challenging times and helps uphold U-M’s position among the top universities in the world.”
During FY ’22, some of those challenges included ongoing supply chain issues, the onset of inflation and the continuing COVID-19 pandemic.
Despite the difficulties, U-M was able to carry out its mission while “building a strong foundation — financial and otherwise — to ensure it can best serve its students, patients and society in the years ahead,” wrote Geoffrey Chatas, executive vice president and chief financial officer.
U-M’s net position — the residual interest in the university’s assets and deferred outflows, after liabilities and deferred inflows are deducted — was $19.3 billion at the end of the fiscal year, down slightly from $19.5 billion a year before.
Distributions from the university’s endowment provided $434 million to support university operations during the fiscal year, for a total of $1.9 billion over the past five years.
Additional financial highlights in the report include:
- The university reported $1.7 billion in research expenditures, with more than half sponsored by the federal government. The research helped to generate 433 new inventions and launch 16 startup companies.
- The value of the university’s endowment totaled $17.3 billion on June 30, 2022.
- The FY ’22 budget included a 6.4% increase in financial aid for undergraduates on the Ann Arbor campus as well as an extension of the Go Blue Guarantee to the Dearborn and Flint campuses. This landmark program provides four years of free tuition for high-achieving, in-state undergraduate students with a family income of $65,000 or less and assets less than $50,000.
- U-M remains one of only seven public universities in the country to earn the highest possible credit ratings from S&P Global (AAA) and Moody’s (Aaa).
The consolidated financial statements of the university are audited by the independent accounting firm of PwC.
