NEW YORK (GenomeWeb News) - In its recently-issued financial report for the fiscal year ended June 30, Harvard University said it plans to write off investment assets of The Eli and Edythe L. Broad Institute of MIT and Harvard totaling $52 million during the current fiscal year.
The write-off is connected with the July re-launch of the Cambridge, Mass., genomic medicine research institute as an independent 501c3 nonprofit. As part of that effort, Harvard, MIT, and the Broad Foundation have transferred employees, research agreements, and related assets and liabilities to the new entity, the financial report stated.
Harvard also said its financials for FY 2009, as with the previous fiscal year, included $6.5 million in accounts payable, part of an obligation Harvard owes MIT as part of an agreement requiring the two universities to jointly raise $20M per year in gifts and non-federal grants and awards to support the Broad's endeavors over a five-year term.
Under the agreement, according to the financial statement, if the $20 million goal is not reached, Harvard has agreed to pay MIT up to $32.5 million during the period, a figure that rises to $60 million if the term is extended for five more years.
Previously, the Broad 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.