2 0 0 8 – 2 0 0 9 Financial Summary

I am pleased to present the University’s summarized financial information for fiscal year 2009 on the following pages. This year, rather than provide the standard commentary regarding these financial results, I would like to discuss the University’s response to the ongoing economic crisis.

The University’s primary concern during these unprecedented economic times has been its impact on our students, faculty, staff and their families. We also sought to maintain Villanova’s financial flexibility to address unforeseen economic circumstances. Accordingly, the University implemented: ; The lowest tuition increase in 35 years ; A 9% increase in undergraduate financial aid ; A hiring and salary freeze, with a one-time hardship stipend given to lower-paid employees ; A 5% reduction in non-salaried operating budgets (effective for fiscal year 2011)

These prudent measures required much sacrifice by the University’s faculty and staff. Their dedication and commitment has resulted in the University achieving full enrollment for academic year 2009–2010 and avoiding layoffs.

Villanova’s total financial resources are less than they were a year ago, primarily as a result of a decline in market value of the endowment. Additionally, financial aid has necessarily been overspent as we sought to lessen the financial strain on academically deserving students and their families.

However, the University has not only maintained its ample cash reserves, but completed construction of the new Law School and begun implementation of the Campus Master Plan. We began with projects that have the most impact on the everyday lives of our students.

Implementation of the Master Plan commenced this past summer with renovations of Fedigan Hall, which was transformed into a “green dorm” and model of sustainability, as well as a living laboratory for engineering students. It also included long-needed aesthetic improvements to the Dougherty Hall student dining hall, and a renovation of the Office of Admissions in Austin Hall. These projects, along with the recent Board of Trustees-approved renovations of two student residences, Sullivan and Sheehan Halls (scheduled for the next two summers), demonstrate exciting progress during this economically-challenging environment.

Villanova’s financial strategies and discipline were affirmed by rating actions issued this past fall by Moody’s and Standard & Poor’s. Moody’s upgraded the University’s credit rating from A2 to A1. As of that time, Villanova was one of only two private college and universities to receive such an upgrade in calendar 2009. Standard & Poor’s changed its outlook on Villanova from stable to positive. Both rating actions cited the University’s strong financial operations, management and conservative debt structure.

As an alumnus, parent and employee, I want to assure you that the University remains well-positioned to face the challenges ahead— and committed to providing and enhancing the outstanding educational experience that is Villanova.