The University of Virginia has a long-standing reputation as one of the most financially stable and effectively managed universities in the nation. In the pages of this report, you will see how we have built and maintained that reputation over time — through prudent stewardship of our resources, an intense focus on efficiency, and an aggressive approach to cost savings.

As we approach the beginning of the University’s bicentennial in 2017, we have laid out strategies for UVA’s future with the Cornerstone Plan. Two of the priorities in the plan are essential to that future: the recruitment and retention of a distinguished faculty for the University’s third century, and the implementation of our Affordable Excellence program.

As we face a generational turnover of our faculty, recruiting and retaining the best and brightest faculty from across the nation and around the world is our top priority. Through this effort, we will shape the intellectual future of the University. At the same time, the Affordable Excellence program provides a sustainable model for us to address strategic investments in the quality of the UVA educational experience as we continue to offer more enrollment opportunities for in-state students at affordable tuition rates and reduce the student loan debt burden on low- and middle-income Virginia families.

Executive Vice President and Chief Operating Officer, Pat Hogan, provides strong leadership for the University. The commitment that he and his staff bring to their daily work has resulted in the sound financial record documented in these pages.

I am grateful to Pat and his team, just as I am grateful to our alumni, parents, friends and advocates around the world who support and strengthen the University of Virginia.

Teresa A. Sullivan