Berklee Consolidated Financial Statements: May 31, 2024, and 2023

Letter from the Interim Chief Financial Officer

Dear Berklee community,

Fiscal Year 2024 (FY24) financial results continue to be strong as Berklee continues to invest in student success on all campuses. I am pleased to share that Berklee ended FY24 with a positive margin in unrestricted operations of $6.2M, or 1.7% and $8.2M or 2.3% in unrestricted and restricted operations. In FY24, there were various factors contributing to the operating results, including continued economic inflation, facilities, information technology, and human resource investments for future growth, and the stabilization on enrollment due to capacity constraints in the Boston campus. 

The balance sheet showed growth in net assets of $47.6M overall. Liquidity and cash balances were impacted by investments related to the renovation of 12 Hemenway St., the Berklee Bridge (student success), investments in information technology, and other capital renovation and repair costs. There was a reduction in debt principal to $230.0M. Berklee’s endowment posted positive investment returns of $47.4M (12.2%) in FY24.

In the statement of activities, net tuition and fees increased $11.6M, while contributions increased by $1.9M. The cost of instruction increased by $9.3M based on investments in faculty and related student needs. The cost of academic support also increased by $1.7M due to investments in resources to support the academic mission, market-driven wage inflation, and student centric investments. The cost of institutional support increased by $4.6M. This increase included salary and benefit increases, technology enhancements, and investments in several institutional priorities. Depreciation and amortization increased slightly over FY23, due to the recent completion of significant capital projects addressing deferred maintenance. Unrestricted net assets are 72.1% of the total asset base, which compares positively to a majority of Berklee’s peer institutions. 

There were no significant accounting pronouncements or material changes in the statements adopted in fiscal year 2024. Berklee received an unqualified (clean) opinion from its external audit firm KPMG.

We look forward to an exciting year ahead as we continue to provide a high quality education, further invest in the academic infrastructure, and continuing to enhance the student experience. 

View Berklee's consolidated financial statements.

F. John Case
Interim Chief Financial Officer