A recent financial audit of Appalachian State University highlights the impact the economic downturn can have on an organization’s investments. The university’s endowment investments lost $2.4 million in value during the four months from July through October of 2008, a 17.4 percent decline. The university’s foundation endowment lost about $9.5 million in value. How much more did the investments lose in November and December?
Here’s the information from the audit:
University – The fair market value of the university’s endowment investments in the long-term investment pool decreased 17.4 percent over the four-month period ending Oct. 31, 2008.
The market values for the investment pool were $13,781,768.81 at June 30, 2008 and declined to $11,390,261.64.
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Component Unit – The university foundation’s endowment investments decreased 16.7 percent over the four-month period ending Oct. 31, 2008. The market values at June 30, 2008 were $56,534,813 (total investments per Note 2B – Component Units, less real estate held for resale of $10,154,146 and short-term investment fund of $15,323,288) and declined to $47,079,064.
These changes are primarily due to unrealized losses on investments as a result of the current economic and financial market conditions. University and Foundation management, along with their investment management advisors, will continue to monitor investments for the purpose of managing investment risks and to maximize investment returns.
Click here to read the full audit and get all the numbers for ASU.