The following pages represent Caltech's 2008–2009 audited financial statements, which are current as of the fiscal-year closing date of September 30, 2009.
While overall net assets decreased 11% (reflecting investments losses experienced during the first half of the fiscal year), Caltech came through the worst of the current economic situation in good shape. Early in 2009, the Institute acted quickly and decisively to address our fiscal challenges. The total campus operating budget (excluding JPL) was reduced by roughly 5% by targeting reductions aimed at preserving the Institute's core missions of research and education. Although we must still be vigilant in controlling our costs, we remain fundamentally on target with our strategic financial plans.
Signs of overall stability and encouraging growth in core areas have emerged, due both to Caltech’s efforts to manage its finances and our faculty’s efforts in attracting new funding for research.
Before accounting for investment losses, total unrestricted revenues increased 6.7% including JPL, and 14.0% excluding JPL.
A majority of Caltech’s funding comes from sponsored research support, and our faculty has continued to have notable success in securing research funding. Research awards in FY 2009 reached an all-time high of $357 million, including $29 million of funds secured from the federal stimulus package. Awards from federal sponsors increased by 34.4%, while awards from nonfederal sponsors increased by 20.7%.
We also had a good year in terms of private giving, as donors continue to recognize the importance of the research and educational efforts of our outstanding faculty and students. Caltech raised in excess of $130 million in new gifts and commitments—more than in any previous year except 2008, the final year of our most recent fund-raising campaign.
Caltech's endowment suffered overall investment losses of $143 million, largely in the first fiscal quarter, but has begun a recovery over the past six months. After reaching a low of about $1.3 billion in early 2009, the endowment is now above $1.5 billion. A significant part of the endowment remains in short-term, highly liquid assets; this helped Caltech avoid potentially difficult liquidity issues.
Campus expenses remained relatively flat after eliminating JPL and organized research, which is recovered from the federal government and other sponsors. The increase in spending on instruction and academic support and on campus organized research reflects the Institute’s continued focus on managing its resources for the benefit of research and education.
The impact of the recession will be felt for several years. It will take some time for the endowment to recover fully, and new challenges may arise. We continue to be a strong and focused institution, committed to pursuing our core mission of research and education with undiminished vigor.
Dean W. Currie
Vice President for Business and Finance
Download a pdf of Caltech's 2008-2009 Financial Report
