Financial Results for Fiscal Year 2022
The University of Chicago ended fiscal year 2022 with an operating surplus of $2.0 million. The University’s consolidated net assets decreased by $1.2 billion to $11.2 billion at June 30, 2022.
Assets of the University decreased 8 percent, or $1.6 billion, to $18.8 billion as of June 30, 2022. The largest asset category, investments (primarily the endowment), decreased $1.4 billion, or 11 percent, driven by the stress in the financial markets. Land, buildings, equipment, and books, the second largest asset category, decreased 2 percent, or $72.8 million, mainly due to depreciation expense on capital assets offset by increases in buildings.
Total liabilities decreased 5 percent, or $424.9 million, to $7.6 billion, primarily due to a decrease in accounts payable and accrued liabilities of $301.7 million. The largest liability category is notes and bonds payable, which decreased by $87.5 million to $5.2 billion.
Net assets decreased by $1.2 billion, from $12.4 billion to $11.2 billion, during fiscal year 2022.
Balance sheet categories are shown in figure 1.
Results of Operations
Consolidated operating results were almost break-even, ending with a $2.0 million operating surplus. Despite growth among most revenue lines, market forces for talent and salary pressure, coupled with a notable increase in benefits, resulted in a 9 percent increase in compensation expense. Increases in supplies, services, and other expense reflect a return to prepandemic normal spending patterns.
The components of operating revenue and expenses are shown in figures 2 and 3.
Audited Financial Statements
The University’s fiscal year 2022 financial statements were audited by KPMG LLP. The complete audited financial statements for fiscal year 2022 are available online at finserv.uchicago.edu/reporting/statements.shtml or by writing to Financial Services, The University of Chicago, 6054 South Drexel Avenue, Chicago, Illinois 60637.
The balance sheet, summary, and components of operating revenue and expenses have been excerpted from the audited financial statements.