In the midst of poor economic conditions, the university experienced a $29 million operating surplus for the fiscal year of 2011, according to Vice President for Finance and Treasurer Thomas McGurty.
Despite the surplus, administrators voiced the need for continued financial responsibility in the face of possible federal grant cuts and economic fluctuations.
University President Anthony Monaco announced the surplus in a Sept. 12 email to the Tufts community.
The surplus is equivalent to about 4 percent of the university's operating budget, according to McGurty.
The past fiscal year's surplus represents a significant increase from the fiscal year of 2010, which reported a budget surplus of only $3.8 million, according to McGurty.
McGurty attributed the surplus to several causes, including a growth in enrollment and increased grant funding.
"More students accepted our offer of admission than we had anticipated…result[ing] in additional tuition revenue, although that was partially offset by higher financial aid costs," McGurty told the Daily in an email.
Tufts gave $15 million to the Class of 2015 in need-based financial aid this year, which was $1 million more than last year, Monaco's email said.
"We received more grant funding than anticipated, providing faculty salary support and additional indirect cost recovery," he added.
The university's policy of self-insured employee health care, as well as miscellaneous expense savings, also contributed to the surplus, McGurty added.
In his email to the Tufts community, Monaco also cited a return on university investments as a contributing factor in the surplus.
The excess funds will go toward the university's reserve funding, to be used in the event of a budget deficit, according to McGurty.
"All operating surpluses are added to reserve accounts maintained for each school and the university," he said.
"These reserves serve as a backstop if a school should operate with an unanticipated budget deficit… [and] as a funding source for the renovation of existing facilities or construction of new space," he added.
In his email Monaco also voiced a need for prudence in the university's financial planning going forward, citing fluctuation in financial markets as well as possible changes in federal and state funding for higher education.
"We anticipate that we may need to adjust to funding reductions over the course of the year, depending on legislative and administrative actions," he said.
Though the university will be monitoring changes in the economy, as well as possible federal grant cuts, the university is not currently planning a decrease in budget funding for the fiscal year 2012, McGurty said.
"The severity and durations of any possible future [economic] decline would determine the need for any potential budgetary action," he said.
"We are carefully watching developments in Washington as the Super Committee and Congress grapples with the long term budget deficit," he added.
He noted that the university will be issuing new bonds in the coming year to "finance various capital projects throughout the university."
The university's careful financial management practices enabled the university to prosper in harsh economic climate, according to University Director of Public Relations Kim Thurler.
"Tufts has an approach to managing its finances that is prudent and conservative and that enables us to manage those resources effectively," she said. "That's one of the things that has enabled us to weather the economic ups and downs over the recent years."
Monaco in his email praised the high caliber of the Tufts community, especially its faculty, staff and administrators, calling it the strongest asset the university possesses during tough economic times.
"In these challenging times, the quality of our faculty, staff and students will continue to be our foremost competitive advantage."
"It is reassuring to be surrounded by such talented and resourceful colleagues, who, I am confident, will work with me to find creative solutions to whatever challenges we may encounter," he added.
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Laina Piera contributed reporting to this article.
