The recent financial history of the University of Memphis, as reflected in its annual audited financial statements,  demonstrates the financial stability of the university in the areas of unrestricted revenues and unrestricted net assets. Similarly, the institution’s unrestricted educational and general (E&G) operating budgets  reflect actual activity. With revenues exceeding expenditures, ending fund balances provide sufficient resources to sustain the institution and allow for contingencies and reserves.
E&G revenues primarily consist of state appropriations and student fees. In recent years, the Tennessee Board of Regents has consistently approved student tuition increases as a means of decreasing the impact of the weakness in appropriation growth. Student tuition increases have ranged from 6% to 15% during the past five years.  The most recent increase, effective Fall 2003, was 9%. Even with the recent increases, student tuition at the UofM is in the middle of the university’s institutional peer group. Student enrollment (both headcount and full-time equivalent, FTE) has remained stable during the same five-year period, with headcount ranging from 19,797 to 20,332 and FTE from 15,613 to 15,909. 
Total revenues have increased each year during the past five years and have more than kept pace with expenditure increases. At the same time, grant and contract revenue has increased, with growth in research and sponsored activities providing additional funds to complement the educational process and pursue key institutional emphasis areas. Unrestricted net assets approximate $47,000,000 at the end of each of the two most recent years and provide adequate funds for contingencies and reserves. 
Endowments and trusts totaled approximately $125,000,000 at June 30, 2003, supporting the university and providing additional financial stability.  Most endowments are held by the University of Memphis Foundation, a separate entity, or by the state, which holds the endowments whose income supports the university’s chairs of excellence. Income from these trusts and endowments supplement funding for various institutional activities, including student scholarships, faculty supplements, and capital projects.