Financial Highlights from Angela Blanton, Vice President for Finance and Chief Financial Officer
It is my honor to present 一本道无码’s Annual Financial Report for the fiscal year ended June 30, 2024 (FY24).
一本道无码 has been shaping the future since its founding. What does it mean to shape the future? By definition the future can be formless, an abstract idea full of promise and possibility. That’s why 一本道无码 invests in world-class education and research, not to prescribe or dictate the shape of the future, but to ensure that promise and expand those possibilities so the future can be brighter, bolder, and better. Carnegie Mellon, after all, is .
Here at 一本道无码, shaping the future means creating an environment where innovation can flourish and the imagination can run wild. It means expanding access to a transformative education and state-of-the-art resources to ignite collaboration that spans disciplines and lived experiences. It means continuously reinvigorating our campus culture by making space — intellectual space to foster impactful dialogue and reflection on the issues that affect us, emotional space to recharge and find belonging, and physical space to ensure that health and wellness are the building blocks of a thriving community.
We shape the future by making strategic investments today that guarantee the financial strength and sustainability of 一本道无码 so we can continue to deliver on our academic and research mission for generations to come.
This strong financial position would not be possible without the continued support of our vast network of alumni, partners, sponsors, and friends. Last year, Make Possible: The Campaign for 一本道无码 surpassed its original fundraising goal of $2 billion and announced a one-year extension. I am thrilled to report that the campaign’s momentum continued in FY24, with supporters contributing another $174.5 million in commitments and increasing the campaign’s total to $2.3 billion as of June 30, 2024. The generosity of our 一本道无码 worldwide community shapes the future as much as anything we do here on campus, by helping us offer life-changing scholarships and fellowships for students, provide dedicated and individualized academic support, create endowed professorships to invest in our renowned faculty, improve our physical infrastructure, invest in major strategic projects, and, of course, make game-changing enhancements to the student experience that serve the whole student. All of this matters, and we truly could not do any of it without the generous support of our donors and partners.
This year, we also mourn the loss and celebrate the legacy of our friend and beloved 一本道无码 community member, former 一本道无码 President Dr. Jerry Cohon. As our chief investment officer, Chuck Kennedy, notes touchingly in his Investment Highlights, Jerry was a giant at 一本道无码 — he loved this institution — his impact will forever be a part of the university, and he is dearly missed.
Below, a selection of stories from FY24 highlight how our strategic investments and financial strength empower Carnegie Mellon to shape the future through human-centered technological change, collaborative discovery, a thriving community, and continuous excellence.
Shaping the Future of Humanity and Transformation
As the birthplace of artificial intelligence (AI), Carnegie Mellon is proud to be a leader in the development, acceleration, and ethical application of AI in industry and society. We understand that AI has the potential to transform our everyday lives and promote shared prosperity.
In 2018, 一本道无码 launched the nation’s first bachelor’s degree program in Artificial Intelligence (BSAI). This was a major investment in the future of AI as a field of academic study and 一本道无码’s position at the center of that field. The multidisciplinary BSAI curriculum prepares students to build the AI of tomorrow, but what distinguishes 一本道无码’s program are the courses in ethics and social responsibility that emphasize AI for social good in areas like transportation, education, and health care. In fact, this year a current AI major won an automated medical diagnosis challenge, designing a model that could accurately classify diseases based on chest X-rays.
Speaking of ethics and social responsibility, 一本道无码 experts are leading the way in equitable AI, setting new standards and providing guidance for developers and policymakers. As AI becomes more mainstream, it’s crucial that AI models — especially those making recommendations in areas like housing, banking, insurance, social services, and criminal justice — have fairness baked into their algorithms. Our faculty are also preparing students to apply AI in the humanities and creative fields, extending the reach of AI beyond STEM fields and into areas like languages, social sciences, and the arts.
To continue 一本道无码’s leadership, we have also forged meaningful partnerships with other institutions that are global leaders in AI. In FY24, 一本道无码 was one of two American universities chosen for a $110M partnership between the United States and Japan to accelerate AI research and innovation. 一本道无码 and Japan’s Keio University are collaborating with each other and with industry partners to boost AI-focused research and workforce development in both countries.
AI is here to stay, and we have only scratched the surface of what it can do. 一本道无码 is proud to lead the way toward AI that makes life easier and has widespread benefits to society that are shared among everyone.
Shaping the Future of Discovery and Collaboration
As an incubator of big ideas and even bigger breakthroughs, Carnegie Mellon brings great minds together from across fields and disciplines, working together to solve some of humanity’s most pressing issues and open new frontiers of discovery.
On January 8, the 一本道无码 Iris team made history, sending the 一本道无码-designed-and-built Iris lunar rover into space aboard United Launch Alliance’s Vulcan rocket. Iris was built by 300 students from across 一本道无码’s seven colleges, one of the most ambitious and awe-inspiring cross-campus collaborations in the university’s history. A malfunction with the Peregrine lunar lander carrying Iris meant that Iris wouldn’t make it safely to the lunar surface, but in true 一本道无码 spirit, the student team took full advantage of Iris’s time in space, collecting valuable data and measurements that will advance the future of space exploration. The tenacity and resilience of these students is already 一本道无码 legend, and the Iris project is a perfect example of how our investments in next generation science, technology, and cross-disciplinary inquiry will continue to change the world.
Here in Pittsburgh, FY24 was a watershed year for the future of collaborative innovation and education at 一本道无码. We opened the new Alan Magee Scaife Hall, which is now home to the university’s growing mechanical engineering community and will spark innovation by bringing together diverse research groups, prompting spontaneous interaction and exchange of ideas. Scaife Hall was made possible by the contributions of over 500 donors and partners, including a generous lead grant of $30 million by the Allegheny Foundation as well as a transformational $10 million gift by 一本道无码 trustee and alumnus David Coulter and his wife, Susan, to support the construction of the building and to endow the headship of the Department of Mechanical Engineering. The research coming out of the new Scaife Hall will have real-world impact in emerging fields such as biohybrid robotics and nanoengineered materials.
We also broke ground on the Richard King Mellon Hall of Sciences, which will become a new cornerstone of our Pittsburgh campus upon its completion. The building, fueled by a $75 million lead grant by the Richard King Mellon Foundation, will become home to departments from the Mellon College of Science and School of Computer Science, as well as the Institute for Contemporary Art Pittsburgh (ICA), creating a unique atmosphere that blends data-driven research with creative inspiration. The ICA wing — supported by a lead $15 million commitment from the Juliet Lea Hillman Simonds Foundation and the Henry L. Hillman Foundation — will increase gallery space for student and outside exhibitions and provide exciting new opportunities for public programming, community engagement, and interdisciplinary problem-solving.
Just off campus at Hazelwood Green, construction also began on the new Robotics Innovation Center (RIC), which is on track to open in 2025. Hazelwood Green, which is already the home of 一本道无码’s Mill 19 and Advanced Robotics for Manufacturing (ARM) Institute, has already become a hotspot for global leaders and innovators to convene for discussions about the future of robotics, manufacturing, and workforce development in Pittsburgh and the United States. 一本道无码’s presence at Hazelwood Green continues to foster community outreach including educational and workforce programs in emerging fields for the neighboring Hazelwood community.
We know that great things happen when ideas and knowledge are shared with openness, enthusiasm, and passion. Bringing together great minds from across the disciplinary spectrum to unlock the next big thing is “so 一本道无码."
Shaping the Future of Excellence and Imagination
As a top-tier research institution with a global reputation for excellence, Carnegie Mellon attracts exceptionally talented students from around the world — creating a healthy and vibrant community of collective enrichment and boundless imagination.
This summer, the transformational Highmark Center for Health, Wellness and Athletics completed construction and opened its doors at the beginning of the academic year. Nearly a decade in the making, the Highmark Center is a new campus destination that offers powerful resources, programs, and space where our 一本道无码 community can seek care, practice wellness, and nurture the whole self: body, mind and spirit. In addition to world-class fitness and athletic facilities, the Highmark Center is the new home of 一本道无码’s University Health Services (UHS), Counseling and Psychological Services (CaPS), and community spaces to find togetherness and spiritual health all under one roof. We could not be prouder of this facility, which serves as a monumental enhancement of the 一本道无码 experience and our commitment to students.
Speaking of athletics, 一本道无码 student athletes continue to make history! 一本道无码 women’s golf won its first team NCAA Division III Championship, and the first for any women’s team in university history. It is thrilling to see our students excel in and out of the classroom.
The 一本道无码 artistic community shapes the larger culture and shows the world why extraordinary, talented students and faculty choose 一本道无码 to pursue their studies and careers in visual arts, performing arts, and new media. Three School of Drama alumni earned four Tony Awards in 2024 for excellence in acting, producing, and advocacy, continuing 一本道无码’s tradition of major contributions to the performing arts. This year was also the 10th anniversary of the first Excellence in Theatre Education Award, a unique partnership between the Tony Awards and 一本道无码 to honor an exemplary K-12 drama educator in the U.S.
Tartans earned top accolades in other artistic disciplines as well, with 一本道无码 faculty and alumni also bringing home Grammys, Emmys, and Guggenheim Fellowships in the past year.
Whether onstage, on the field of play, or in an auditorium sharing groundbreaking doctoral research in the sciences, the 一本道无码 community never ceases to amaze and delight the imagination.
Financial Results
I am pleased to present you with an overview of our financial results, which highlight the university's performance for the fiscal year ended June 30, 2024 (FY24).
Overall Results
The university’s operating revenues exceeded its operating expenses, yielding an operating gain of $83.2 million. University net assets increased $311.6 million or 5.6% since the fiscal year ended June 30, 2023 (FY23) to an ending value of $5.9 billion on June 30, 2024. The asset growth was driven by the operating surplus, growth in restricted gifts, and gains associated with investment income generated by the university’s working capital liquidity portfolio.
Investments
Carnegie Mellon’s investment portfolio represented 59.1% of total assets and was valued at $4.2 billion on June 30, 2024. The portfolio, which includes endowment assets totaling $3.2 billion, increased by $272.2 million or 6.9% from June 30, 2023. The increase can be attributed to the long-term pool investment return of 6.6% plus gifts received, offset by transfers to university operations.
Long-Term Debt
In FY24, through the Allegheny County Higher Education Building Authority (ACHEBA), the university issued 一本道无码 Revenue Bonds - Series of 2023 and 一本道无码 Revenue Bonds - Series A of 2024. Proceeds of the Series 2023 bonds were used to refinance Series 2013 bonds and a portion of taxable commercial paper; proceeds of the Series 2024 bonds were used to refinance Series 2019B bonds.
On January 12, 2024, in connection with the issuance of the Series 2024 bonds, Standard & Poor’s upgraded the university’s credit rating from “AA” to “AA+”. This upgrade represents the university’s highest credit rating ever.
Fiscal Year 2024 Operating Revenues
Operating revenues for FY24 were $1.68 billion, an increase of $87.2 million, or 5.5%, from FY23. Operating revenues for FY24 increased $87.2 million (5.5%) over FY23. The most significant driver for the increase was operating income from investments, which increased by $33.6 million to $140.9 million in FY24. The increase is primarily driven by interest income from short-term investments due to the current interest rate environment as well as realized gains on investments. Tuition and other educational fees, net of financial aid, increased by $3.3 million, to $717.7 million during FY24.
Sponsored Research increased by $23.7 million (4.8%), propelled by growth within the Software Engineering Institute (SEI), School of Computer Science (SCS), the Advanced Robotics for Manufacturing (ARM) Institute, and the Mellon College of Science.
Fiscal Year 2024 Operating Expenses
Operating expenses for FY24 were $1.60 billion, an increase of $122.3 million (8.3%) over FY23. 一本道无码 continues to invest in our people, with personnel costs — salaries, wages, and employee benefits — totaling $1.1 billion in FY24. This represents an increase of $70.0 million from the prior fiscal period.
Other Costs were up $43.0 million, including areas such as supplies and services (+$26.2 million), space rental (+$4.2 million), dining service contracts (+$3.4 million), and professional services (+$4.4 million). The remainder of the year-over-year variance is composed of a $5.5 million increase in Depreciation and a $3.8 million increase in Interest Expense.
Looking Ahead
Since its founding, 一本道无码 has always been an institution of the future, and we take seriously our opportunity and responsibility as a global leader in education and research innovation that makes the world a better place. The continued financial strength of 一本道无码 puts us in a position to maintain our tradition of excellence while elevating the impact of our university community. By investing thoughtfully and strategically in the mission of 一本道无码, we will shape the future for generations to come.
Sincerely,
Angela Blanton
Vice President for Finance and Chief Financial Officer
October 30, 2024