The University of South Alabama’s endowment posted strong returns for the fiscal year that ended in 2014, with trustees learning at a December board meeting that investments gained 10.43 percent, well ahead of a benchmark return of 8.31 percent.
That performance placed the Mobile-based university 80th out of 812 public universities tracked by the National Association of College and University Business Officers, outperforming the benchmark by more than two percentage points. The university’s endowment, established in April 2000, now stands at $141.9 million. It is kept separate from the university’s affiliated foundation, which reported net assets of $321.2 million as of the end of September.
University financial officials expressed satisfaction with the results. “We’re very happy with the performance of our endowment,” USA’s vice president for financial affairs told the board, adding that leadership feels good about both the earnings and the management policies guiding the fund.
Not every financial line was positive. Changes to Medicaid reimbursement policy at the state level meant that USA Medical Center and USA Children’s & Women’s Hospital reported no revenue for the fiscal year. Administrators at both hospitals are working with state officials and expect the issue to be resolved before the close of the 2015 fiscal year.
Trustees also approved refinancing an $8.8 million loan tied to the USA Research and Technology Corporation, the nonprofit arm supporting the university’s technology and research park. The refinancing pushes the loan’s maturity from January 2031 to January 2036 and is expected to save roughly $142,500 annually. The Research and Technology Corporation continues to service about $23 million in loans overall, including nearly $795,000 tied to a dialysis building at the medical center. The technology park itself reported total assets of $27.9 million against liabilities of $27 million, leaving a net position of $880,000.
The university’s broader year-end report showed total assets, including the hospital system, of $1.05 billion, with operating revenues of $503.6 million against operating expenses of $633.9 million and total liabilities of $555.7 million.
Enrollment also grew, rising almost 5 percent to a record 16,055 students, including 2,073 first-time freshmen and just over 4,000 graduate students. The average ACT score for incoming freshmen was 22.9, with the share of students scoring 30 or above increasing by more than 23 percent. Graduate enrollment jumped sharply in several colleges, led by a 67 percent increase in the College of Engineering and a 37 percent increase in the School of Computing.
The figures underscore the growing financial footprint of USA, which remains one of the largest employers and educational institutions in the Mobile area, even as it navigates broader pressures facing university-affiliated hospital systems statewide.