President Mark Schlissel says the primary focus of his work at the University of Michigan is to position the university for “perpetual excellence and public impact” in research, creative work, performance, patient care and education.
The president’s comments are included in the university’s annual report for fiscal year 2016, now available in an expanded, interactive digital format.
“We will seek to provide the best and most forward-looking undergraduate, graduate and professional education available today to best prepare the leaders of tomorrow,” Schlissel says. “We will also foster the translation of cutting-edge medical research into outstanding patient care in our comprehensive health system.”
The annual report provides details on U-M’s financial position and offers a glimpse into the university’s comprehensive offerings in education, research, public service and patient care on the Ann Arbor campus, as well as educational opportunities on the regional campuses in Flint and Dearborn.
Schlissel says many of the initiatives being developed at the university will advance excellence at U-M for many years to come.
“These will include strategic investments in precision medicine, academic innovation and the alleviation of poverty. They will be in the type of high-impact research collaborations that allow us to take advantage of the full breadth of the university’s academic portfolio,” he says.
The report is segmented into five main components, including messages from campus leaders, highlights of the year, awards and honors, major projects and the year-end financial statements.
Vice President for Development Jerry May says in the report that donors made cash gifts and pledge payments during the fiscal year totaling a record $440.6 million, up 10 percent from the previous year. More than 116,000 donors made gifts of $1,000 or less, demonstrating that gifts of all sizes, in the aggregate, make great things happen.
He reports that as the $4 billion Victors for Michigan campaign passes its halfway mark, donors have given more than $3.5 billion as of June 30, 2016.
Kevin Hegarty, executive vice president and chief financial officer, says the financial position of the university remains strong.
“I am very pleased to report that our remarkable institution continues to be financially healthy and well positioned for the future,” he says. “In large part this is due to the latest generation of our outstanding faculty and staff whose extraordinary dedication to the university enables it to thrive.”
At the close of the fiscal year, June 30, the university’s net position, which represents residual interest in the university’s assets after liabilities are deducted, stood at $13.0 billion, down slightly from $13.3 billion a year earlier. This change is largely attributed to a net investment loss of $130 million on the university’s investment portfolio, compared to net income of $358 million the previous year, Hegarty explains.
The FY 2016 financial highlights in the report include:
• The university again earned the highest credit ratings available from Standard & Poor’s (AAA) and Moody’s Investor Services (Aaa). U-M is one of only seven public universities in the country to maintain both of these ratings.
• The U-M research enterprise tallied a record year of $1.39 billion in research expenditures, up 7.2 percent from the previous year.
• U-M Hospitals and Health Centers continued its strong financial performance during the year, with an operating margin of 6.3 percent ($190.4 million) on operating revenues of $3 billion.
• The value of the U-M’s endowment fell slightly to $9.7 billion, a decline from $10 billion the previous year, reflecting a small net investment loss and endowment spending, which was partially offset by new endowment gifts.