Report on University Finances
The New School’s fiscal 2013 financial results demonstrate our ongoing dependence on enrollment. The university had an increase in net assets of $7.3 million from operating activities based on revenues of $314 million, resulting in a 2.3% operating margin, against last year’s 2.6%. The slight decline in operating margin reflects an increase in support for students as well as our continuing efforts to reduce costs.
The endowment rebounded from the prior year’s loss, posting a 5.9% gain for the fiscal year. This positive performance contributed to an overall increase in total net assets of $11.2 million, to $439 million.
Progress on the construction of the University Center is the most significant change in the university’s balance sheet. Expenditures on land, buildings. and equipment increased by $130.5 million, reflecting this construction. At the statement date the University Center project remained both on schedule and on budget.
The fiscal 2013 financial results reflect the university’s overall trend of financial stability. The National Association of College and University Business Officers recently ranked The New School number 8 among schools that registered the highest average annual percentage change in net assets from 2000 to 2010. 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. Our financial position is strong.
Vice President for Finance and Business