Report on University Finances
The current economic climate presents challenges to institutions and individuals alike. At The New School, our prudent fiscal management continues to help us weather these challenges while also enabling us to move the university forward.
The New School’s fiscal 2012 financial results reflect the university’s continued strategic investments in academic programs. The university had an increase of $8.1 million from operating activities based on revenues of $317 million, resulting in a 2.6% operating margin compared to the previous year’s 3.0%. Tuition and contributions from trustees, members of our boards of governors, alumni, parents, and other friends helped us achieve positive results.
The most significant change in the university’s balance sheet is the refinancing in fiscal 2012 of $35.5 million of tax-exempt debt that was issued in 1999 and 2001. This was done to take advantage of historically low tax-exempt interest rates and will reduce our interest expense over the life of the bonds.
Last year was a difficult year for endowments at many colleges and universities, and The New School was not immune. For the year, the endowment was down 1.9%. However, the university relies on endowment investment return for only 3% of our expenses; we have only fixed-rate, long-term debt; we have no outstanding derivative instruments with counterparty or market risk; and we enjoy ready access to cash. As a result, our financial position is strong.
Chief Financial Officer and Senior Vice President for Finance and Business
The New School