Financial Report 2006-07 |
The fiscal year ended June 30, 2007, was the third consecutive year of positive net operating performance at Lawrence University. The college’s financial strength continues to grow due to the continued support of donors, controlled operating expenses, full enrollment, and a healthy economy. In fiscal 2007, total operating revenues reached $52.9 million, which compares favorably to revenues of $54.8 million in the prior year when considering the effect of a one-time $4.5 million debt-reducing gift to the college in fiscal 2006. Net student revenue increased $2.6 million in fiscal 2007 compared to fiscal 2006, due to a larger number of students enrolled at the college and a decrease in financial aid expenses. Earned interest of $300,000 on contributions invested for the Campus Center and Björklunden, and a strong year in securing government grants also contributed to operating revenue growth. Operating expenses, including depreciation, were $52.1 million in fiscal 2007, compared to $49.6 million in fiscal 2006. Annual salary increases were the primary factor for the additional operating expense in fiscal 2007, and we continue to make progress with our energy saving program and utility expenditures. Non-operating income was $56.8 million in fiscal 2007, up 45.2 percent from the prior year’s $25.7 million, with the difference largely due to contributions for long-term purposes such as the construction of the new Campus Center and the renovations at Björklunden. Ground was broken for the Campus Center in the spring of 2007, and the project is expected to be completed in time for the beginning of the 2009-10 academic year. As of June 30, 2007, the market value of the endowment was a record $231.7 million versus $200.3 million in the prior year. The college’s investment committee continues to work closely with investment advisors to bolster the endowment return, which in fiscal 2007 was 19.6 percent compared to 12.1 percent in fiscal 2006. The return from the endowment and other investments was $25.5 million in fiscal 2007, compared to $9.5 million in the prior year, after the $11 million distribution in each of the years. Lawrence University is on firm financial footing, thanks to the generous support of alumni and friends, and the hard work of faculty, staff, and our board of trustees. |
