The Boston University Office of the President released its annual financial report Tuesday to highlight a year of scholarship from students and faculty and the projects around campus.
The report, which was available online, announced the amount of money spent in a variety of areas throughout the year, including research on a bionic pancreas, construction of the Engineering Product Innovation Center, creation of the Frederick S. Pardee School of Global Studies and undergraduate grants and scholarships.
“The opportunities that students have to pursue their education and do research and develop and grow both academic interests and personal interests,” said BU spokesman Colin Riley.
BU achieved an investment return of 16.9 percent on its $1.6 billion endowment in 2014, the report stated.
“Spending guideline is 4 percent of a 20-quarter average market value for the endowment,” said Lila Hunnewell, BU’s chief investment officer. “If you think about [that] we are spending 4 percent, 16.9 is four times that. We can store that up to use that when we have a bad year with a low return. The significant idea was the return was greater than the spending. We stored up some spending capacity for a future year.”
The university allocated $350.3 million toward research awards, $203 million to undergraduate financial aid and $152 million to construction on BU’s Charles River Campus and its Medical Campus, the report stated.
BU’s benefit can be attributed to the strong 24.6 percent return of the U.S. stock market, Hunnewell said, and a successful global market also largely influenced this year’s strength.
The Campaign for BU, a university-wide fundraising effort, has raised $697 million since its launch in 2012, the report stated. The campaign’s goal is to raise $1 billion in five years.
“Right now, all indications are that this university is successful and can be even more successful,” said Scott Nichols, senior vice president of development and alumni relations. “The billion-dollar goal is looking very attainable and four years ago, this was more of a leap of faith.”
In 2014, $152 million went to construction and refurbishing projects for technology, the report stated.
In a letter within the annual report, BU President Robert Brown said that spending money on programs and technology only helps students and makes the university stronger.
“Every dollar we spend creates value,” he said in the letter. “While we may be on the cusp of a revolution in how education is delivered, one equation remains steadfast — the financial one. When students and their families invest significant dollars in a higher education, it’s imperative they see a meaningful return.”
Several students said they enjoyed the report’s digital presentation and the way the funding was divided into a variety of subject areas.
“I liked how the website was formatted. I think it was really cool when they talked about the research that they put the money into,” said Katherine Jamison, a freshman in the College of Arts and Sciences. “I’m not sure what my major is yet, but I’m looking into the sciences, and I’m glad the school contributes to that.”
Jade Chang, a senior in CAS, said the report promotes a greater sense of unity within the undergraduate experience, so once students become alumni, they will feel closer and be more willing to donate in future years.
“Some of the money [could be to] build up the Alumni Association,” he said. “If we aren’t connected here, we aren’t going to connect later.
