financial highlights
Fiscal year 2008 marks the first full year of Case Western Reserve University's financial recovery plan under the leadership of President Barbara R. Snyder. We are pleased to report that the University ended the year with an operating surplus of $127,000. This marks the first time since 2004 that the University reported positive year-end operating results. The surplus represents a strong step forward as the University rebuilds its financial reserves and implements its new strategic plan.
Case Western Reserve initiated a financial recovery plan in 2007 after two years of budget deficits. Under this plan, the University expected to report a $10.5 million deficit in fiscal year 2008. Break-even was not anticipated until fiscal year 2011. The 2008 operating results placed the University well ahead of its financial recovery schedule.
Highlights of the year's improved financial condition include:
» An increase in total operating revenues of 4.9%
» A reduction in total operating expenses of 0.4%
» Break-even operating results
Even with this improved financial condition, the financial recovery plan is not complete, and more work remains. Seven of the University's nine management centers are financially positive, while two remain on track with their recovery plans. Although we are confident that the University will continue this positive financial momentum, we must be mindful of the current economic environment and the potential impact it may have on future results. This year's positive outcome will allow the University to fund initiatives in the new strategic plan, provide for additional budget contingencies for fiscal year 2009, and ensure momentum for further improvements.