Letter from the Vice President of
Business and Finance
The audited financial statements of University of the Pacific for fiscal year 2012 show the University had an annual operating budget surplus for the sixteenth consecutive year. Despite the continued weak economy, an associated small loss in endowment value, increasing family concerns about the cost of education, and continued growth in mandatory costs, the University was able to increase total assets to more than $700 million and increase net assets by $21 million to more than $468 million, the highest levels ever for each of these key measures.
Pacific is dependent on tuition and student fees for two-thirds of its overall revenue, making enrollments critical to the health of the institution. In 2011-12, Pacific was able to maintain stable overall enrollment in undergraduate, graduate and professional programs (see Enrollment Report).
The University implemented a modest increase in tuition, resulting in $14.2 million to offset expenses. Pacific also invested nearly $58 million in University-funded financial aid in order to keep its education accessible to students with financial need. Some 85% of Pacific's undergraduates receive some form of financial aid.
The University purchased a seven-story office building in San Francisco's South of Market (SOMA) neighborhood in November 2011. Now undergoing a major renovation, the building will become University of the Pacific's new San Francisco campus. The prestigious Arthur A. Dugoni School of Dentistry will occupy nearly five floors of the building and the University will offer new academic programs when the building opens in June 2014. The $151 million purchase and renovation costs were financed by the sale of the current dental school buildings, fundraising, and revenue expected from the commercial lease of two floors of the new building. Part of the increase in net assets is associated with the successful sale of the University's dental students residence hall, which helped finance this significant project.
The University's full audited financial statement for FY 2011-12 is available here.
The University's resiliency and vigor has been again demonstrated during this particularly challenging national and state economy. With record levels of net assets and exciting plans underway to establish and expand programs in San Francisco, University of the Pacific is positioning itself to be a leader in higher education in the West.
Vice President of Business & Finance