Amid the economic turbulence gripping markets at home and abroad, the University earned continued recognition in fiscal 2008 for enhancing the financial strength so vital to our mission. Moody’s and Standard & Poor’s testified to this sound management by affirming the University’s bond ratings. Meanwhile, the University invested in new programs and facilities that support the quality academic experience our students expect. Progress continued on our Facilities Master Plan with groundbreaking for St John’s new $77 million University Center/Academic Center. The University completed construction of 16 new townhouse-style residences with more than 500 student beds and a renovated St. Vincent Hall holds nearly 200 additional student beds. In 2008, the University also began construction on two new international campuses in Rome and Paris that will be anchors for St. John’s growing Global Studies programs. The University’s commitment to economically disadvantaged students is a hallmark of its mission. In fiscal 2008, the University boosted the institutional financial aid it provides to $140 million, a 9 percent increase. Also reflecting our mission, 40 percent of entering freshmen in Fall 2007 were students with the highest level of financial need. The University’s ongoing success was recognized in 2008 by public bond ratings of A- and A3 issued by Standard & Poor’s and Moody’s, respectively. The agencies pointed specifically to the University’s prudent financial management, successful fundraising and improved selectivity. The accompanying statements present the University’s financial position as of May 31, 2008, and its operating results for the year then ended. The University’s management prepared these statements 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, the University reported total assets of $1.1 billion as of May 31, 2008. The Statement of Activities shows total operating revenue of $405.8 million and total operating expenses of $398.7 million for the year resulting in an operating bottom line of $7.1 million.