University Financials
Linda Wagner

Linda L. Wagner
Vice President for Finance and Administration

Gannon University completed fiscal year 2014 with a strong financial performance. Net assets increased by $17.1 million. The increase in net assets from operating activities totaled approximately $6.7 million and $10.4 million from non-operating activities. Approximately $7.3 million of the non-operating increase in net assets was due to positive endowment performance. Another $3.1 million was due to non-operating contributions, including gifts to the endowment and the donation of an office building valued at $930,000. Net tuition and fees increased by approximately $4.9 million or 8.5 percent over the prior year. The largest driver was an increase in graduate students. Fall 2013 graduate enrollment was up 10 percent over Fall 2012, and Spring 2014 enrollment was up 24 percent over the prior spring. The majority of the increase in graduate students resulted from strategic initiatives and investments over the last several years to grow our international enrollment. Auxiliary enterprise revenue grew by approximately $185,000 over the prior year.

Unrestricted and restricted contributions totaled approximately $4.6 million, an increase of $1.3 million over the prior year. Federal, state and private grants totaled $4 million. Gannon received new grants including a National Science Foundation grant, Scholarships in Science, Technology, Engineering and Math (STEM) grant, a NASA Cosmic Ray Calorimeter grant, a grant from the Council on Opportunities in Education for the GO College program and from the Pennsylvania Department of Environmental Protection, as well as continuing several other grants.

The total return on the endowment was 18 percent. The endowment fund grew from $47.3 million at the end of FY13 to $56.1 million on June 30, 2014. This increase of $8.8 million includes both the positive returns as well as gifts to the endowment, net of spending.

Expenses increased by 3.8 percent or $2.8 million. Compensation increased by approximately $2.1 million. The compensation pool for faculty and staff was 2.5 percent, which included both salary increases as well as faculty promotions in rank and staff promotions. Operating expenses rose slightly by $800,000 over the prior year. An administrative unit and academic program review process was implemented this year in a continued effort to contain operating costs. Depreciation remained stable at $4.9 million and interest expense fell by almost $300,000. The University continues to experience low variable-rate debt and also refinanced a callable bond issue, receiving a substantially reduced interest rate. Auxiliary enterprise expenses increased approximately $150,000 over the prior year.

Strategic investments that were made into academic programs in FY14 included the addition of faculty and improved facilities. A doctor of nursing practice, a master of science in sport and exercise science and a master of athletic training were introduced, and program enhancements were made to the occupational therapy and physician assistant programs.

The former TKE House was transformed into the Forensic Investigation Center, which provides realistic crime scenes to train students in the area of forensic investigation. A dedicated Biomedical Engineering Laboratory was created in the lower level of 130 W. Eighth St. A newly acquired building at the corner of W. Seventh and Peach streets was renovated into the Center for Communication and the Arts and combined theatre, communication arts, fine arts, advertising communications and journalism under one roof. The Center opened for classes beginning Fall 2014, and in addition to faculty offices and classrooms it also houses several co-curricular programs.

Investments in a number of additional strategic initiatives were made to assure continued improvement in quality and increases in enrollment. The International Recruitment Initiative, T.R.A.V.E.L. Program, Learning Abroad initatives, the acrobatics and tumbling team and competitive cheerleading are a few of these initiatives that have produced very positive results. Return on investment analyses have been completed for all new programs and initiatives. These will be reassessed annually to ensure that targets are being met and action will be taken as required.

The quality of life for our students remains a top priority. The newly renovated Recreation and Wellness Center opened in Fall 2014. This revitalized facility has additional cardio space, multipurpose rooms, free weights, food service, lounges and meeting rooms. New equipment throughout the complex features state-of-the-art technology. A field house, which accommodates an 80-yard indoor turf field, supports new club sports, expanded intramural activities, general student recreation and athletic teams year round.

The University will continue to exercise prudent fiscal management, invest in strategic initiatives to sustain and grow the University and allocate financial resources to ensure that students receive the best possible experience at Gannon.