NEW YORK (GenomeWeb News) – The Broad Institute of MIT and Harvard increased its research revenue and total revenues — as well as its sponsored-research expenses and total expenses — during its final fiscal year before its July 2009 re-launch as an independent 501c3 nonprofit, according to a report issued by the Massachusetts Institute of Technology.
Broad finished MIT's 2009 fiscal year with $166.3 million in research revenues, up 17 percent from the previous 12 months, Theresa Stone, MIT executive vice president and treasurer, said in the MIT Report of the Treasurer for the Fiscal Year Ending June 30, 2009.
The report also recorded a 23.5 percent year-over-year jump, or $23 million, in the Broad Institute's direct spending for sponsored research, which rose during FY 2009 to $121.3 million from $98.2 million in FY '08.
Total revenues for the Broad Institute as reflected in MIT financial statements rose 9 percent during the recently-concluded fiscal year, to $206 million from $188.9 million. Total expenses climbed 4.5 percent year-to-year, from $206.9 million in FY '08 to $215.4 million in FY '09.
Until July 1, 2009, the Cambridge, Mass., genomic medicine research institute was governed jointly by MIT and Harvard, though the institute was legally an MIT entity. MIT and Harvard provided financial support and services for the institute's initial 2004 launch, which followed the first of two $100 million commitments by Los Angeles philanthropists Eli and Edythe Broad.
In October, Broad named its first board of directors, a 14-member panel, capping a process toward independence that began in September 2008, when Eli and Edythe Broad announced their intent to donate $400 million for use as a permanent endowment, in addition to their initial pair of gifts totaling $200 million.
At the time of its separation from MIT and Harvard, according to the FY '09 report, the Broad Institute accounted for $199.5 million in assets and $106.2 million in liabilities reflected in MIT's Statements of Financial Position.
"Assets consist primarily of equipment, leasehold improvements, accounts receivable, grants and contracts in progress, cash, investments, and inventory. Liabilities include sponsor advances, agency funds held, and deferred landlord financed leasehold improvements," according to the report.
Broad accounted for just 1.5 percent of MIT's total assets of more than $12.9 billion in FY '09, and 3.5 percent of the university's total liabilities of just over $3 billion. Those figures fell year-to-year from the $15.5 billion in assets and $2.7 billion in liabilities MIT recorded for FY 2008 — reflecting in large part a $2.1 billion drop in net endowment assets the university blamed on the economy.