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As we look to the future it is clear that in order to maintain our tradition of excellence in education and research Yale must invest wisely in our students, faculty and staff and in the tools and infrastructure of education and research. Yale is doing so by making significant investments in its academic programs and facilities, and in its financial and human resource systems. We are able to do this in large part thanks to the support given to the University by alumni, faculty, staff, students and friends. This year was an exceptionally good one financially for the University. The Endowment, our primary financial asset, reflected strong investment market performance with a 21.8% total return. The Campaign, Yale's largest fund-raising challenge, finished on June 30th with gifts and pledges totaling $1.7 billion. The operating budget, while still recording a $3.8 million deficit, was well on its way to returning to balance. Yale's facility needs received significant attention during the past year as we focus on providing a modern infrastructure that supports the teaching and research efforts of our faculty and ensures an atmosphere conducive to learning for our students. In order to accomplish this goal, we have established a long-term plan to restore and renew Yale's campus. The plan is being financed through a combination of debt, gifts and allocations from the operating budget. By the year 2005, the operating budget and annual facility gifts will fully fund the capital maintenance program for Yale's facilities. The generosity of alumni and other donors whose campaign-related gifts for capital purposes have topped $400 million gives an enormous boost to this effort. We expect that future contributions will continue to play a substantial role in this crucial endeavor. Progress continues to be made in reducing the gap between operating revenues and expenses. The operating budget deficit for 1997 of $3.8 million was slightly ahead of plan and positions the University well to achieve the balanced budget planned for 1998. The Endowment, combining the strong investment performance this year with $47 million of new gifts, has grown to $5.8 billion. Of growing importance to the University's programs, income from Endowment now contributes 18.9% of operating revenues, and is the fastest growing source of support for core programs of the University. The focus of last year’s financial report was information technology; this continues to be an area of vital interest. Major new financial and human resources information systems to be implemented over the next eighteen months will provide improved information on a more timely basis than previously available. We expect the effectiveness and efficiency of the University as a whole to improve as a result of these new information systems. Several initiatives in academic programs got underway in 1997 with significant support from key technology firms. The Library is also actively involved in the expansion of its collections, access and services via electronic media. The rapid change in the health care environment continues to provide challenges for the School of Medicine. This year, the University welcomed Dr. David A. Kessler as the new dean of the Medical School, and he has quickly assembled a very capable management team to lead the School through this changing environment. The University acknowledges with deep appreciation the substantial and diverse contributions made by faculty, staff, alumni and friends. Yale's greatness fully reflects these efforts, and the continuing excellence of the University depends, equally, upon the continuing commitment of the Yale community. |
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