Finances

Fiscal 2003 was another very successful year for St. John’s. In the Fall of 2002, the University enrolled the largest freshman class since 1986. Donovan Hall, the sixth residence hall completed since 1997, opened its doors to a student resident population that now exceeds 2,000 students. Also in the Fall of 2002, Belson Stadium, one of the premier college soccer facilities in the country opened its doors to St. John’s women’s and nationally ranked men’s soccer teams. The University realized an operating surplus of $9.4 million, the largest in recent years, and added $5.2 million to its permanent endowment.

The University’s financial condition remains strong despite a further decline in the value of its investment portfolio resulting from continued softness in the equity markets.

The University’s financial position as of May 31, 2003, and its operating results for the year then ended are presented in the accompanying statements, which have been prepared by the University’s management in accordance with reporting and accounting standards established by the Financial Accounting Standards Board for not-for-profit organizations.

As presented in the accompanying balance sheet, total assets were $695.1 million at May 31, 2003, as compared to $734.6 million at May 31, 2002. The decrease is due primarily to the decline in the value of the University’s portfolio caused by continued declines in the stock market and the liquidation of $25 million in investments used to enter into equity swaps as an efficient means of providing short-term working capital funds.

St. John’s continued to develop its Master Facilities Plan and added $45 million of completed construction projects, comprised primarily of a new residence hall, soccer stadium and enhanced parking facilities. The construction was financed with the proceeds from tax-exempt financing issued through the Dormitory Authority of the State of New York and private contributions. Total assets and total net assets are presented in the accompanying chart.

The Statement of Activities presents the change in net assets for each of the University’s net asset categories, unrestricted, temporarily restricted and permanently restricted for the years ended May 31, 2003 and 2002. Total operating revenues increased $19.9 million, or 7.2 percent, to $295.7 million. Total operating expenses increased $12.9 million, or 4.7 percent, to $286.3 million. Net assets from operating activities increased $9.4 million.

Non-operating activities consist of the decrease in the value of the University’s investments after accounting for investment return utilized in operations.

Temporarily restricted net assets decreased $9.1 million in 2003, while permanently restricted net assets increased $5.2 million.

In 2003, total net assets decreased $12.2 million.

The two pie charts that follow present the composition of total operating revenues and total operating expenses for fiscal year 2003.