Letter about Audited Financial Statements - FY22
Message from the Senior Vice President for Finance and Administration and Treasurer
I am pleased to present the audited financial statements for Suffolk University for the fiscal year ending June 30, 2022 (FY22).
As we closed the books for FY22 and began a new academic year in fall 2022, the University welcomed the greatest number of students since COVID-19 emerged, including the largest freshman class since fall 2015. The financial statements for FY22 incorporate the continued momentum of our investment in important initiatives that are central to our Suffolk 2025 strategic plan and that are moving the University forward. In addition, the statements show both positive and negative lingering impacts of the pandemic as well as the effect of economic pressures on the University’s investment portfolio.
For FY22, the University recorded a positive operating result of $3.3 million, which included a surplus of $1.5 million from activities without donor restrictions. This outcome resulted in part from a reduced level of travel and on-campus functions due to COVID-19 concerns and $6.6 million in federal funding for institutional use under the Higher Education Emergency Relief Fund III, which was authorized by the American Rescue Plan (an additional $6.6 million of federal funding received was awarded to Suffolk for allocation directly to students to assist them with financial impacts of COVID-19). The University utilized a strategic draw from the endowment to fund investments in key initiatives such as the reimagined and newly launched Center for Career Equity, Development & Success. This investment included renovations to space on the ground floor of the Rosalie K. Stahl Building at the corner of Tremont and Beacon Streets to create an expanded and visible new home for the Center. During the year, the University also maintained progress on implementation of Workday Student, the final of four Workday modules that the University has been implementing since 2015 to modernize its core operating system. Implementation of Workday Student is expected to extend through spring 2024. FY22 also marked continued strong success of the University’s Advancement efforts. From FY18 to FY22, Suffolk recorded the five highest years of cash gift receipts in the University’s history.
Net assets decreased to $322 million as of June 30, 2022, a reduction of $52 million. This decline resulted primarily from an investment return of negative 12%, which reflected the portfolio’s 50% allocation to public equities. The endowment decreased by a similar amount to $254 million. The University maintained a robust liquidity position and could access funds representing nearly a full year of expenses on a daily basis from operating cash holdings and the long-term investment pool as of June 30, 2022.
During the year, Moody’s Investors Service (Baa2, stable outlook) and Fitch Global Ratings (BBB, stable outlook) maintained their ratings of the University as well as the stable outlooks. The agencies have highlighted Suffolk’s sound liquidity, financial flexibility, manageable capital spending needs, and diverse program mix as key credit strengths.
The University’s positive trajectory coming out of the pandemic positions Suffolk well for future success. We are confident that the investments we have continued to make under the strategic plan will provide even greater support for our students and community as a whole for years to come.
See our detailed financial statements [PDF].
Laura Sander
Senior Vice President of Finance and Administration and Treasurer