Financial Summary 2019-2020
In so many ways, this past year at Villanova has been like no other. While we have remained committed to prudent financial stewardship of the University that allows us to provide an exceptional educational experience for our students, the COVID-19 pandemic had a dramatic effect on our operations and presented very real challenges. We have been able to weather these challenges thus far by remaining true to our Augustinian Catholic mission and to our long-standing principles of fiscal discipline.
Villanova was on sound financial footing prior to the pandemic, and has remained so largely due to swift and definitive cost-cutting measures. While we returned $16 million in prorated room and board expenses to Villanova students and their families when the campus closed in March, and we canceled all on-campus events and activities for the summer, we also committed to reducing spending that allowed us to avoid furloughing or laying off employees. Faculty and staff did not receive salary increases, senior University leaders’ salaries were reduced by 10 percent for a period of two months, the hiring of new employees was effectively frozen, and nonessential expenses and renovation and construction projects were halted, among other measures.
These were difficult decisions, but necessary to maintain Villanova’s stability amid tremendous uncertainty. Our community rallied during this most challenging time, pulling together to ensure that this institution will be here for generations to come. We have a fiduciary responsibility to be stewards of the University, ensuring that our current students have the best possible experience, while also preparing for the future. Even in times of volatility, we maintain our values of Veritas, Unitas, Caritas, and they guide all we do.
Highlights from Fiscal 2020 include the following:
- Total assets increased by $105 million to $1.88 billion.
- Land, buildings and equipment value grew by $31 million to $742 million as a result of ongoing campus development projects, including The Commons residential complex and the John and Joan Mullen Center for the Performing Arts.
- The University’s operating income of $29 million resulted in a 5.9 percent margin.
More detail about the University’s financial statements and rating reports can be found at the Financial Affairs Office website.
Sincerely,
Kenneth G. Valosky ’82
Executive Vice President
Balance Sheets
($ in thousands) as of May 31
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| ASSETS | |||
| Cash and Short-Term Investments | $ 175,244 | $ 121,275 | $ 196,956 |
| Long-Term Investments at Market | 867,732 | 821,226 | 763,762 |
| Accounts Receivable, net | 80,317 | 103,796 | 126,990 |
| Other Assets | 6,210 | 6,736 | 5,840 |
| Assets Whose Use Is Limited | 2,111 | 2,085 | 31,991 |
| Student Loans Receivable, net | 7,262 | 9,101 | 10,325 |
| Land, Buildings and Equipment, net | 741,930 | 711,241 | 582,161 |
| TOTAL ASSETS | $1,880,806 | $1,775,460 | $1,718,025 |
| LIABILITIES | |||
| Accounts Payable and Accrued Expenses | $ 53,531 | $ 81,664 | $ 76,108 |
| Deposits and Deferred Revenue | 40,695 | 31,116 | 32,932 |
| Short-Term Lines of Credit | 60,000 | — | — |
| Long-Term Obligations | 254,044 | 268,124 | 281,614 |
| Other Liabilities | 23,834 | 24,794 | 23,100 |
| TOTAL LIABILITIES | 432,104 | 405,698 | 413,754 |
| NET ASSETS | 1,448,702 | 1,369,762 | 1,304,271 |
| TOTAL LIABILITIES AND NET ASSETS | $1,880,806 | $1,775,460 | $1,718,025 |
Endowment vs. Long-Term Debt
($ in millions)
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Endowment ($) - dark blue | 553 | 641 | 711 | 743 | 797 |
| Long-Term Debt ($) - grey | 302 | 295 | 282 | 268 | 254 |
Net Assets
($ in millions)
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Total Assets ($) - dark turquiose | 1,718 | 1,775 | 1,881 |
| Total Net Assets ($) - light turquiose | 1,304 | 1,370 | 1,449 |
Unrestricted Revenues
($ in thousands) as of May 31
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| OPERATING REVENUES | |||
| Student-Related Revenue: | |||
| Student Tuition and Fees | $ 461,867 | $ 452,154 | $ 433,729 |
| Sales and Services of Auxiliary Enterprises | 71,079 | 77,551 | 73,272 |
| $532,946 | $529,705 | $507,001 | |
| Gifts | 14,371 | 14,641 | 20,771 |
| Private Grants | 2,032 | 1,961 | 2,053 |
| Government Grants | 8,827 | 7,303 | 6,444 |
| Endowment Resources | 14,733 | 12,829 | 12,666 |
| Investment Income | 4,004 | 5,026 | 3,873 |
| Other Sources | 28,727 | 31,113 | 24,814 |
| Net Assets Released from Restrictions | 24,023 | 21,765 | 21,254 |
| TOTAL OPERATING REVENUES | $629,663 | $624,343 | $598,876 |
Sources of Operating Revenue 2020
| Tuition and Fees (dark blue) | 73.4% | $ 461,867 |
| Auxiliary Services (medium blue) | 11.3% | 71,079 |
| Investments (medium grey) | 5.6% | 35,138 |
| Gifts and Grants (dark grey) | 4.0% | 25,230 |
| Other (light blue) | 5.8% | 36,349 |
| $629,663 |
Unrestricted Expenses
($ in thousands) as of May 31
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| OPERATING EXPENSES | |||
| Salaries and Employee Benefits | $ 297,543 | $285,608 | $ 271,239 |
| Financial Aid | 142,523 | 139,708 | 133,454 |
| Supplies, Services and Other | 112,058 | 117,525 | 116,078 |
| Depreciation | 33,070 | 26,847 | 23,004 |
| Interest on Indebtedness | 8,849 | 4,221 | 6,205 |
| Utilities | 6,659 | 8,265 | 7,099 |
| TOTAL OPERATING EXPENSES | $600,702 | $ 582,174 | $557,079 |
| AMOUNTS RESERVED FOR CAPITAL EXPENDITURES, DEBT PRINCIPAL PAYMENTS AND STRATEGIC INITIATIVES |
$28,961 | $42,169 | $41,797 |
Distribution of Expenses 2020
| Salaries and Employee Benefits (medium blue) | 49.5% | $ 297,543 |
| Financial Aid (medium grey) | 23.7% | 142,523 |
| Supplies, Services and Other (dark blue) | 18.7% | 112,058 |
| Depreciation (light blue) | 5.5% | 33,070 |
| Utilities (light grey) | 1.1% | 6,659 |
| Interest on Indebtedness (dark grey) | 1.5% | 8,849 |
| $600,702 |