March 7, 1994
This analysis shows University of Delaware with considerable improvement over the excellent financial health indicated by our FY92 report. It has assets of $717 million and Liabilities of $78 million, resulting in Net Assets (called Fund Balances) of $639 million, up by $39 million since FY92. Nearly $313 million of the Net Assets are liquid Expendable Balances, enough to pay 745% of long-term debt, or to carry on operations 94% of a year without additional income. Also included are substantial true endowments amounting to nearly $57 million. The rest of the Net Assets is made up of Student Loan Fund balances of $11 million and Investment in Plant of $259 million. Additional endowment-like assets in excess of $43 million, not included on the balance sheet, are held in Trust for the sole benefit of the university.
Long-term debt in FY93 amounted to $42 million, down from $46 million in FY92. Debt Service is projected to average $4.5 million, that is 1.5% of FY93 unrestricted Current Fund revenue.
Total Financial Inflows at $362 million in FY93 had grown at a nine-year average annual rate (APR) of 8% and Outflows at $301 had grown at an APR of 8%, yielding an Adjusted Fund balance increase in FY93 of $61 million, well above the $48 million nine-year average growth in Fund balances, and somewhat below last year's unusually high $72.5 million. Since depreciation figures for the whole period are not available, the comparison made here is growth without allowance for depreciation. For more details see tables S.4 and 5a.
The bottom line is a university in excellent financial health showing definite improvement since our last report, with Fund Balances increasing at an average annual rate of 7.6% for the past nine years. Given the last several year's experience, we estimate growth in Adjusted Fund Balances over the next few years to be in the range of $47 to $72 million per year, probably near the $47 million average.
