Waltham’s Bentley University Financially Stable After Pandemic

WALTHAM, MA — Bentley University said Tuesday that the school is financially stable following difficulty and uncertainty during the COVID-19 pandemic.

According to Bentley’s financial statements for fiscal year 2021, their balance sheet remains in good standing due to “proactive measures” that were taken since July 2020.

"Our entire community played a role in spending wisely and reducing costs where possible, and for that we thank you,” said Maureen Forrester, Vice President for Administration and Finance, in a statement.

Although the school is back on track, Forrester said Bentley’s finances were not so stable just a short while ago when higher education institutions pivoted to remote learning, teaching, and working at the start of the pandemic.

"Colleges and universities across the country were unsure if students would be able to safely return to campus in the fall and how long they would ultimately be able to stay if cases began to spread uncontrollably,” said Forrester. "And industry-wide, institutions wondered what enrollment numbers would truly look like when the fall semester started if students decided to stay home. It is safe to say that the entire global market was left guessing how the pandemic would impact the road ahead.”

As Bentley prepared for the fall 2020 semester, the administration and finance staff estimated a potential enrollment decline of 20 percent, or 10 million dollars in revenue shortages, among other losses due to remote learning.

In light of these possible losses, the school took several one-time measures to maintain their financial health, including freezing annual merit raises for faculty and staff, reducing the university’s 403b contribution, and implementing a voluntary early retirement program. In addition, Bentley accessed its full line of credit of $25 million to increase its liquidity and held cash in the endowment pool as an emergency precaution.

Ultimately, Bentley’s total revenue did experience a material decline from $227 million in FY2020 to $207 million in FY2021. However, worst case financial situations were avoided and the school ended the year in a much better position, decreasing expenses by nearly $15 million for an operating surplus of $9 million.

"These expense savings resulted from a combination of the thoughtful budget management of all departments on campus, as well as the natural reduction in non-fixed operating expenses including study abroad, staff travel, event catering and utilities that were associated with limited campus operations,” said Forrester.

"We are excited to be embarking on the strategic positioning effort that prioritizes new revenue growth to support a more financially stable business model,” she continued. "To ensure we have the funds to invest in the exciting new ideas generated through the committees focused on Student Experience, Culture and Values, and Positioning and Partnerships, it is critical that we continue to practice strong fiscal management in the year ahead.”

To view Bentley’s financial statements for FY2020 and FY2021, click here.