Report of the Treasurer
Princeton University’s financial results for fiscal year 2016 were not up to par, largely due to a low investment return, although its overall financial condition remains stable and strong. Net assets for the fiscal year ended June 30, 2016, decreased by $0.6 billion, or 2.7 percent, due to nearly flat investment results combined with regular spending distributions from the Endowment, which reduced its overall value. Total net assets of $22.7 billion at year-end declined from the prior year’s high-water mark. The University’s Endowment spending rate of 4.1 percent in 2016 was below the midpoint of the spending policy band established by its Board of Trustees, and consistent with Princeton’s conservative fiscal management track record. An operating surplus of $17.0 million, or 1.0 percent of total operating revenues, was achieved primarily through prudent management of operating expenses, as well as careful stewardship of the University’s financial resources.