Financial
Report
FISCAL YEAR 2022
 
  
2    
3  
13     
  
15    
17  
21    
Message from the President
I am pleased to submit Harvard University’s nancial
results for scal year 2022.
Guided by health and safety protocols, our community
saw the safe return of students, faculty, and sta to
campus last year. Emerging variants and subvariants
were navigated with discipline and prudence, and
improved health conditions allowed us to ease
restrictions and increase our on-campus activities in
the latter half of the spring semester. In May, we held
our usual Commencement for the Class of 2022 and,
two days later, welcomed back to campus the Classes
of 2020 and 2021 for a long-awaited celebration. The
preponderance of joy and excitement at these events
was a spectacular armation of our community’s
enduring strength and spirit.
Across Harvard, faculty, students, and sta continue
to advance scholarship and teaching on the world’s
most signicant challenges. This fall ushers in the
launch of two groundbreaking research entities:
the Salata Institute for Climate and Sustainability
and the Kempner Institute for the Study of Natural
and Articial Intelligence. Building on the report
and recommendations released in the spring, the
Presidential Initiative on Harvard and the Legacy of
Slavery has begun its implementation work supported
by a $100 million commitment by the University,
most of it endowed. We are making further progress
in Allston with the approval for the rst phase of the
University’s Enterprise Research Campus (ERC),
which will serve as an inclusive center for invention,
collaboration, and entrepreneurship, as well as with
the creation of additional aordable housing and the
new home of the American Repertory Theater. These
next steps will bring together partners from Greater
Boston and beyond, expanding our community to
increase vibrancy along and around Western Avenue.
As we grow opportunities, we work to ensure that
those opportunities are within reach for talented
individuals regardless of their circumstances. We are
deeply grateful to our alums and donors—past and
present—whose contributions are improving access
to Harvard. Their support has enabled us to expand
the Harvard Financial Aid Initiative (HFAI) for low-
and middle-income families. Starting with the class
of 2026, the cost to attend Harvard College is free
for families with annual incomes below $75,000,
an increase from the $65,000 annual income
threshold in previous years. Making it possible for
more people to realize their potential is an act of
outstandinggenerosity.
Though we nd ourselves in a better public
health situation today, there remains instability
in the global economy and markets, which will
continue to inuence the University’s nancial
resources. Fortunately, prudent planning and sound
management have put us in a strong nancial position
that, along with the generous support of alums
and friends, enables us to fulll our mission. It is
impossible to anticipate the challenges the University
will face in the future, but I know our community
is prepared to embrace opportunities that move
Harvard—and the world—forward.
Lawrence S. Bacow

October 2022
HARVARD UNIVERSITY
MESSAGE FROM THE PRESIDENT
Financial Overview
From the Vice President for Finance and the Treasurer
Harvard’s operations were reinvigorated in scal year
20
22 with both revenues and expenses exceeding,
for the rst time, pre-pandemic levels. This occurred
amidst steeply rising ination, changes in how and
where work is accomplished, volatility in the capital
markets and economic uncertainty—all which
demand vigilance and innovative, future-oriented
shifts in the way the University operates. Over the past
year, rather than returning to “business as usual,”
leaders across Harvard have been focused on how we
can incorporate the collective learnings from the past
two and half years with respect to digital pedagogy,
student access, dynamic approaches to work, the use
of space and travel, and research aimed at solving the
world’schallenges.
We want to thank Harvard’s faculty and sta for
enabling outstanding teaching that benets our
students and ground-breaking research that benets
the world. We also want to thank all members of
the Harvard community for carefully managing our
nancial resources as we strive to steward every dollar
in support of the mission of the University.
Revenues this past year rebounded with an 11%
increase to $5.8 billion, following two years of
sequential declines with fewer students on campus
during the pandemic. The revenue increases this
past year reect a return of students to campus with
resulting increases in tuition, room and board, and
other related service revenues, such as parking,
rent and health fees. Harvard had more students on
campus this past year than at any point in its history
as the number of entering rst-year students returned
to normal levels, and the number of returning
students was boosted by those who took deferrals
during thepandemic.
As the University’s single largest contributor to
r
evenue, 45% of this year’s income arose from
philanthropy—9% from current use gifts, which have
an immediate impact on operations, and 36% from the
ongoing support of distributions from the endowment.
We want to thank all the alumni and donors who gave
to the University—past and present—as Harvard’s
excellence in teaching, scholarship, research, and
generous nancial aid is made possible through
philanthropy. We are deeply appreciative of this
extraordinarysupport.
Expenses rebounded as well with a 9% increase,
although rising less than revenues due to
comparatively high vacancy rates in stang as well
as sourcing challenges with goods and services.
The diculty in hiring people and underlying
supply-chain issues were common problems across
the country this past year. The combination of the
temporary boost in revenues along with temporarily
suppressed spending drove a signicant portion of the
$406 million surplus. Peer universities experienced
this same phenomenon.
A surplus at Harvard is a consolidation of the
u
nderlying results of each of the schools and units
within the University. Surpluses, and for that matter,
losses, are earned and controlled locally at Harvard,
and it is our schools and units who decide how to
allocate any surplus funds either by reinvesting into
their respective missions, or setting aside funds for
rainy day reserves or future programmatic expansion.
Harvard is actively investing across the campus—
please see a few examples in priority areas including
education, nancial aid, student accessibility,
research, and climate sustainability detailed later
in this report. Building reserves is also wise at this
time as ination increases our operating and capital
costs, and recession fears mount. Recessions put
pressure on all sources of revenues and rapidly aect
donations and research grants, as well as the need for
increased nancial aid. Remaining adroit and attentive
is essential as history shows that planning ahead,
including building reserves, can help buer negative
impacts during times of economicadversity.
HARVARD UNIVERSITY
FINANCIAL OVERVIEW
The endowment experienced a negative return of
1.8% for the year. This is a very good result given
the signicant declines in both the equity and bond
markets in the past year. We wrote a year ago that
“history teaches that capital markets give and take
away,” so we remain cautious in our administration
of the endowment as we endeavor to spend as much
as possible from the endowment annually to support
current academic and research activities, while
keeping an eye on the intent of our alumni and
donors to utilize their endowed gifts as an ongoing
source of income, often with specic restrictions, for
generations of future students. The positive impact of
a 34% return a year ago has been muted by this year’s
market reversals, but Harvard Management Company
(HMC) continues to wisely manage the endowment
so that it can best provide steady and increasing
distributions to the University’s budget into the future.
We thank Narv Narvekar and his HMC colleagues for
their excellent stewardship, and encourage you to read
Narv’s letter on page 13 of the annual report.
Amidst these challenges, the University’s overall
nancial condition remains very strong with ample
levels of liquidity, comparatively low levels of debt,
and ready access to borrowings as needed. This past
spring, as the window was closing on many years of a
low interest rate environment, we issued $750 million
of both new taxable and tax-exempt long-term debt,
including a Green Bond issuance, reecting Harvard’s
commitment to climate sustainability. The all-in xed
interest rate on this spring’s indebtedness is lower
than similar duration US Treasury borrowing rates
are today, and reduces our overall cost of the total debt
portfolio to just below 4%.
As we emerge from the pandemic that left our campus
empty for so long, we recognize that—incredibly and
admirably—it did not impede our community from
carrying on in the fulllment of the University’s
mission. Instead, the experience has unleashed
new energy, new approaches, and new paths to
help chart the roadmap to Harvard’s future. With a
strong nancial foundation and agile planning, the
University is well positioned to manage through both
future opportunities and challenges.
Thomas J. Hollister
   
Paul J. Finnegan

October 2022
HARVARD UNIVERSITY
FINANCIAL OVERVIEW

The University ended scal year 2022 with an
operating surplus of $406 million compared to
$283million in scal year 2021. The result marks the
rst time that revenue and expenses have exceeded
pre-pandemic levels. While on-campus activities
and programming revitalized revenue with more
students enrolled than any year prior, expenses were
constrained by evolving pandemic restrictions, high
vacancy rates in stang, and sourcing challenges for
goods and services.
In scal year 2022, total operating revenue increased
11% or $587 million to $5.8 billion. Harvard’s
diversied revenue portfolio relies on three main
sources of revenue: education or tuition, sponsored
research, and philanthropy.
Total education revenue comprises 21% of revenue
and includes tuition and board and lodging payments
from both traditional degree seeking students
(undergraduate, graduate, and professional), as well
as executive and continuing education learners. In
support of research, our talented faculty are awarded
external grants to further global and research
priorities and this sponsored funding makes up
17% of revenue. Revenue generated each year from
our education program and research endeavors is
not sucient to fund operations and as such, the
University relies on phil anthropy to ll in the gap. In
scal year 2022, our current and previous donors
supported 45% of revenue through their generosity
and belief in the broad impact of education and
research at Harvard.
For Harvard’s many schools and units, revenue
proles vary widely, with each drawing a dierent
proportion of its budget from its endowment and
othersources.
7%
10%
Other
17%
Current
Use Gifts
9%
Net
Endowment
Distribution
36%
13%
Degree
Seeking
Education
Publications
and Royalties
Services
and Other
8%
Continuing &
Executive
Education
Non-Federal
Sponsored
6%
11%
Federal
Sponsored
Education
21%
Research
17%
Philanthropy
45%
  2022   
Harvard University’s stewardship of its nancial resources is aimed at advancing teaching, learning, and
research priorities to make a positive impact in the world. This includes expanding access to education
across the globe, supporting students with our strong nancial aid program, fullling ourongoing
dedication to public service, and transforming how problems are understood and addressed through
research. The key nancial highlights for scal year 2022 included in this report demonstrate the
University’s continued commitment to advancing these priorities.
HARVARD UNIVERSITY
FINANCIAL OVERVIEW
OtherGifts for current useSponsored supportEducation revenueEndowment income made available for operations/endowment distribution
Education
13%
22%
13%
21%
31%
13%
5%
44%
36%
2%
Design
Law
45%
5%
3%
10%
37%
Engineering &
Applied
Sciences
Business
39%
3%
12%
22%
24%
35%
7%
20%
38%
Dental
20%
24%
24%
30%
6%
26%
Medical
Kennedy
School
15%
13%
36%
25%
11%
4%
21%
3%
38%
34%
University
17%
17%
36%
21%
Public
Health
Divinity
Faculty
of Arts &
Sciences
3%
4%
61%
20%
12%
Radclie
12%
10%
6%
71%
1%
12%
81%
7%
9%
FISCAL YEAR 2022 SOURCES OF OPERATING REVENUE
6%
7%
13%
22%
52%
The University’s operating expenses increased by
$464 million or 9%, to $5.4 billion for scal year 2022.
While spending has rebounded in many areas across
the University, overall expense growth lagged revenue
growth due to continued pandemic and external
marketconditions.
Compensation, or people, expenses (i.e., salaries,
wages and benets) represented approximately half
of the University’s total operating expenses in scal
year 2022. Salaries and wages increased by 6%, or
$130million, to $2.2 billion, resulting from wage
increases oset by higher than average levels of
position vacancies. Employee benet expense grew at
a muted pace of 1% due to medical costs increasing at
a lower rate than before the pandemic, combined with
reductions in the long-term cost of our post-retirement
health and pension programs.
11%
12%
41%
5%
13%
7%
3%
8%
Salaries &
Wages
Benets
Depreciation
Interest
Space &
Occupancy
Space 18%
People
52%
Supplies &
Equipment
Services
Purchased
Other
  2022  
HARVARD UNIVERSITY
FINANCIAL OVERVIEW
While non-compensation expense began to rebound,
responsible cost management and continued
pandemic impacts to programming and purchasing
suppressed this growth, keeping some expenses
below pre-pandemic levels. Costs for space and
occupancy, travel, and supplies and equipment were
equal to or below pre-pandemic levels. COVID-related
expenditures were down from $83million in scal
year 2021 to $53million in scal year 2022.
 
Investments and endowment
In scal year 2022, the return on investments
was -1.8% and its value (after the net impact of
distributions from the endowment for operations, and
the addition of new gifts to the endowment during the
year) decreased from $53.2 billion at the end of scal
year 2021 to $50.9 billion at the end of scal year 2022.
More information can be found in the Message from
the CEO of Harvard Management Company, found
later in this report.
The University has a policy of maintaining liquidity
outside of the General Investment Account (GIA).
These liquid, short-term investments totaled
$2.2billion at June 30, 2022 compared to $1.5billion
at June 30, 2021 (see Note 2), well above our minimum
policy requirement.
Debt
Bonds and notes payable increased from $5.5 billion at
June 30, 2021 to $6.1 billion at June 30, 2022, driven
by a $750 million bond issuance during the scal
year, consisting of $500 million of taxable bonds
and $250 million of tax-exempt Green Bonds. The
tax-exempt borrowing marked the rst time the
University issued bonds with a Green designation,
reecting the University’s long-standing sustainable
building principles in alignment with the Climate
Bond Initiative. The University maintained its AAA
rating by S&P Global Ratings and Aaa by Moody’s
InvestorServices.
Fixed assets
The University resumed capital projects that had
been curtailed as a result of the COVID-19 pandemic
however, though supply chain and construction labor
shortages have continued to delay schedules and
spending. The University invested $356 million in
capital for scal 2022 compared to $410million in
scal year 2021. The current challenges facing the
construction industry are expected to continue into
scalyear 2023.
Signicant progress was made on major projects
including the completion of Swartz Hall, a donor
funded renewal of Harvard Divinity School’s main
campus building which utilized the University’s
Healthier Building Materials Academy to build a new
multifaith space and modernized classrooms to help
facilitate a sense of community as students return
to campus. In addition, the Reginald F. Lewis Law
Center, a newly renovated space, will serve as a living
laboratory for world-class research, learning, and
innovation, opened its doors on Harvard Law School’s
campus in January 2022.
HARVARD UNIVERSITY
FINANCIAL OVERVIEW
 
The challenge of climate change demands a bold
response and clear action from organizations and
individuals. Harvard is committed to transitioning
away from fossil fuel use by accelerating solutions that
enhance public health and equity, improve building
eciency, and promote new renewable energy. Our
entire community of students, faculty, and sta are
taking critical action on climate change by advancing
cutting-edge research and translating research into
action on campus.
Fossil Fuel-Free by 2050 and Fossil Fuel-Neutral
by2026
Harvard was one of the rst organizations to
announce in February 2018 a goal to eliminate the
useof all fossil fuels to heat, cool, and power buildings
and vehicles on our campus by 2050 along with a
short-term goal to be fossil fuel-neutral by 2026 as
a bridging strategy. The University’s climate action
plan, including its roadmap to achieve the interim
2026 goal, uniquely addresses both greenhouse
gas emissions (GHG) and health impacts from air
pollution caused by fossil fuels.
Endowment Net Zero by 2050
Harvard has pledged to make its endowment net zero
of greenhouse gases by 2050. This commitment was
a rst among university endowments and adheres to
the timeline set by the Paris Agreement. In scal year
2022, Harvard Management Company’s operations
became carbon neutral.
In spring 2022, Harvard issued $250 million
of greenbonds to fund sustainable capital
projects, including the recently constructed
Science and Engineering Complex, renewal of
Adams House, and renovation of the Soldiers
Field Park housing complex.
More than 30 percent of Harvard’s bus eet
is now electric after the University purchased
four 100 percent electric buses and electric
infrastructure to replace four, similarly sized
bio-diesel powered vehicles. The transition to
electric power is expected to lower greenhouse
gas emissions by more than 220,000 pounds
annually while reducing air and noise pollution.
The new groundbreaking Salata Institute
for Climate and Sustainability, launched in
fall 2022, will advance and catalyze research
programs across all of Harvard’s Schools
and enable comprehensive cross-University
education in climate and the environment.
Theinstitute is made possible by a $200 million
gift to Harvard from Melanie and Jean Salata.
The Science and Engineering Complex(SEC)
opened in fall 2020 and is home to the Harvard
John A. Paulson School of Engineering and
Applied Sciences (SEAS). The 544,000-square-
foot building is certied Leadership in Energy
and Environmental Design (LEED) Platinum
and is the largest building and rst research
laboratory globally to receive Living Building
Challenge Materials, Equity, and Beauty
Petalcertication.
James H. Stock, the Harold Hitchings
Burbank Professor of Political Economy with
the Faculty of Arts and Sciences and member
of the faculty at Harvard Kennedy School, was
named the inaugural Vice Provost for Climate
and Sustainability in fall 2021 to advance
the University’s climate research and its
globalimpact.
The 2022 Climate Change Solutions Fund
awarded $1.3 million in research grants
to Harvard faculty and students who are
advancing solutions to reduce the risks of
climate change, diminish its impacts on the
environment, and hasten innovation that will
support cleaner energy and a greenerworld.
PHOTO: BRAD FEINKNOPF
HARVARD UNIVERSITY
FINANCIAL OVERVIEW

In scal year 2022, across its 12 schools, Harvard
enrolled 25,110 students from around the globe,
including 7,095 at Harvard College.
Total education revenue
Student income increased $335 million or 38%
to $1.2billion in scal year 2022. Revenue from
traditional student programs (undergraduate and
graduate) grew by $113 million or 26% as students
returned to campus for the 2021-2022 school
year after taking advantage of prior year deferral
policies, allowing them to pause their course of
study during the pandemic. Board and lodging
revenue of $200 million grew 187% as students
fully returned to campus for the academic year.
Financial aid applied to student income increased
$70 million or 16% to $506 million in scal year
2022. Net executive and continuing education totaled
$469million, rebounding $91 million or 24% after
the substantial impact of the COVID-19 pandemic on
the prior two years with program cancellations and
enrollmentdeclines.
Undergraduate and graduate programs and
nancialaid
Harvard is committed to cultivating a diverse
community of bright and talented students regardless
of their ability to pay. Thanks to our robust nancial
aid program, approximately 55% of Harvard College
students receive need-based scholarships and pay an
average of $16,100. Additionally, over 20% of these
Harvard College students pay nothing to attend.
Since launching the Harvard Financial Aid Initiative
in 2004, the College has awarded over $2.8 billion
in grant aid, and the undergraduate nancial aid
budget has nearly tripled from $80 million in 2005
to $225million in 2022. The average net cost of
attendance for all Harvard College students is $41,148.
Approximately 94% of dollars supporting student
nancial aid at Harvard come from institutional
sources, including gifts, the endowment and
unrestricted funds. The other 6% comes from
the federal government aid initiatives and other
outsidesponsors.
Expanding access
In recent years, Harvard College signicantly expanded
nancial aid, rst, by eliminating the expectation that
students contribute from their summer earnings, and
in 2022-23 by expecting a ‘$0 parent contribution’
from all families making under $75,000. In addition to
the aid described above, Harvard also provides funding
for low-income students to pay for health insurance,
emergency expenses, event fees, and other activities
in order to ensure that students can participate fully
in the Harvard experience. First-year students from
families making under $75,000 also receive a $2,000
start-up grant.
Over the past decade, the University has continuously
worked to extend a Harvard education to audiences
beyond the traditional on-campus undergraduate and
graduate student. In 2021, Harvard Online enrolled
over 7.6 million unique learners worldwide in courses
created by Harvard faculty, and nine of our twelve
schools oer professional education programs for both
individuals and organizations. These programs reach
learners in every corner of the globe, helping them
achieve their personal and professional potential.
In Fall 2021, Harvard and MIT created a new nonprot
that focuses on closing the learning and opportunity
gap for millions of learners through the development
of new educational partnerships, digital tools, and
learning strategies. The nonprot was created using
the proceeds of the sale of the online course provider
edX to U, a leader in education technology. The
new nonprot plans to devote signicant resources
to forging partnerships with institutions of higher
education, particularly community colleges and
other educational institutions that serve under-
resourced communities. It also seeks to partner with
other nonprot organizations to tackle longstanding
inequities in education, and with enterprises and
governments to address workforce reskilling needs,
while advancing learning experience platforms and
research in all theseareas.
HARVARD UNIVERSITY
FINANCIAL OVERVIEW

Harvard scholars conduct research in almost every
eld, seeking to expand human knowledge through
analysis, innovation, and insight. In 2022, research
was supported by $976 million of sponsored research
funds. In addition, the University funded $384million
in University funds, as submitted in the 2021 National
Science Foundation Higher Education and Research
Development (HERD) Survey. Research is carried out
both in the departments of the schools and at more
than 100 research centers, on campus and around
the world. Researchers include faculty members,
visiting scholars, post-doctoral fellows, and graduate
and undergraduate students, and they collaborate
with colleagues across the University, at aliated
institutions, and at other researchinstitutions.
During scal year 2022, the University saw continued
growth in research funding. In aggregate, revenue
from federal and non-federal sponsored sources
increased by $49 million or 5%. Federal funding,
which accounted for approximately 66% of total
sponsored revenue in scal year 2022, increased
$17 million or 3% to $642 million. The University’s
relationships with corporations, foundations and
other non-federal sponsors expanded in scal year
2022, resulting in a $32 million or 11% increase
in non-federal sponsored revenues, which totaled
$334million. Nonfederal funding continues to be an
area of growth, as researchers diversify their research
funding support. In addition, Harvard devotes
signicant institutional resources to leverage these
federal and non-federal investments. This funding
is crucial to support the initial development or early-
stage research which enables the researchers to
develop an idea to a state in which it can be presented
to sponsors for additional funding, as well as other
uses including seed funding large new initiatives,
subsidizing projects with external funding, and
supporting faculty to venture into new areas of
scientic inquiry.
DEPLOYING ARTIFICIAL INTELLIGENCE
AGAINST CANCER
Gastroenterologists at Harvard Medical School and
Beth Israel Deaconess Medical Center used an AI-based
computer-vision algorithm to backstop physicians looking
at colonoscopy scans and found they lessened the chance
a doctor would miss a potentially cancerous polyp by
30 percent. Across the University, researchers, faculty,
and students are working to improve algorithms, boost
computing power, and push the boundaries of what AI can
do. The newly launched Kempner Institute for the Study
of Natural and Articial Intelligence is one University-
wide initiative in this space, bringing together the elds of
neuroscience and AI to enhance our understanding of how
humans think.
NEW APPROACH MAY HELP CLEAR HURDLE
TO LARGESCALE QUANTUM COMPUTING
A team of Harvard-led physicists, which includes
collaborators from QuEra Computing, MIT, and the
University of Innsbruck, has developed a new approach
for processing quantum information that shues atoms
in mid-computation, allowing for the self-correction of
errors. This approach marks a major step toward the goal
of building large-scale machines that leverage the unique
characteristics of quantum mechanics to bring about real-
world breakthroughs in material science, communication
technologies, nance, and many otherelds.
HARVARD UNIVERSITY
FINANCIAL OVERVIEW


Combining gifts for current use and Harvard’s
endowment distribution, philanthropy accounts
for 45% of scal year 2022 revenue. Every gift helps
Harvard continue to be a leading force for progress
in the world, enabling excellence in our teaching
and research mission, recruiting and retaining
our worldclass faculty, helping students thrive, and
providing greater access through nancial aid.
Gifts for current use
In scal year 2022, Harvard received current use
gifts from alumni, foundations, and others totaling
$505million, representing approximately 9% of
operating revenues. Support for the University comes
from donations of all sizes; more than 75% of gifts in
scal year 2022 averaged $155 per donor.
The Harvard endowment
Harvard’s endowment has existed for nearly
four centuries and belongs to current and future
generations of Harvard students, faculty, and
researchers. The aggregate endowment is made
up of more than 14,000 individual endowments
that support nearly every aspect of the University’s
work, from student nancial aid to neighborhood
programs, from museum and library preservation to
campus activities, from faculty and fellow positions to
scientic advancement.
Donor contributions to the endowment have enabled
leading nancial aid programs, groundbreaking
discoveries in scientic research, and hundreds of
professorships across a wide range of academic elds.
Each year, a portion of the endowment is paid out as
an annual distribution to support the University’s
annual operations. In any given year, the University
aims to maximize what we can responsibly draw,
while balancing both current and future needs.
Guided by this principle of intergenerational equity,
Harvard’s endowment is carefully managed in order to
ensure that future generations will enjoy its benets
just as much as the current one.
Cash gifts to the endowment were $584 million in
scal year 2022 compared to $465 million in scal
year2021.
Endowment returns made available for operations
The University’s endowment spending practice has
to balance two competing goals: the need to fund
the operating budget with a stable and predictable
distribution, and the obligation to maintain the long-
term value of the endowment. There is a common
misconception that endowments, including Harvard’s,
can be accessed like bank accounts, used for anything
at any time as long as funds are available. In reality,
Harvard’s exibility in spending from the endowment
is limited by the fact that it is designed to last forever,
which is crucial for an institution intended to serve
generations of students and pursue research on
questions that cannot be answered in onelifetime.
Law $2,504
Public Health $2,009
Engineering & Applied
Sciences $1,848
Kennedy School $1,559
Radclie $805
Education $804
Divinity $796
Design $657
University professorship $416
Dental $267
President’s funds $3,127
Business
$5,086
Other
Departs.
$4,561
Medical
$5,562
Faculty of
Arts & Sciences
$20,390
        30, 2022
In millions of dollars
   $50,878
Interfaculty initiatives $487

HARVARD UNIVERSITY
FINANCIAL OVERVIEW
Harvard is obligated to preserve the purchasing power
of the endowment by spending only a small fraction of
its value each year. Spending signicantly more than
that over time, for whatever reason, would privilege the
present over the future in a manner inconsistent with
an endowment’s fundamental purpose of maintaining
intergenerational equity. As a general rule, Harvard
targets an annual endowment payout rate of 5.0 to
5.5% of market value. The actual payout rate varies
each year based on endowment returns. For example,
following extraordinary endowment returns in FY21
of 33.6% that served to boost the endowment’s market
value, the payout rate (i.e., the annual distribution as
a percent of market value) fell, despite the fact that
the annual distribution increased. This critical source
of funding distributed $2.1 billion in the scal year
ending June 30, 2022—representing 36% of Harvard’s
total operating revenue—and is the single largest
source of revenue supporting theUniversity.
 
Donor directed
Capital/Construction (1%)
Flexible
Faculty & Teaching (2%)
Library & Museums (3%)
Other
Professorships
Program support
Research
Scholarships &
Student Support
24%
6%
5%
20%
30%
9%
ENDOWMENT RETURNS MADE AVAILABLE FOR OPERATIONS BY YEAR
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$2,200
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
4.6%
Endowment Distribution
Payout
Rate
Endowment Return
4.8% 4.6% 6.1% 5.3% 4.7% 5.1% 4.9% 4.6% 4.9% 5.4% 5.3% 5.3% 5.3% 5.2% 4.2%
Endowment Distribution (in millions of dollars)
Endowment Return
Endowment payout
While the endowment is a critical source of funding,
70% of the annual distribution is directed to specic
programs, departments, or purposes and must be
spent in accordance with the terms set forth by the
donor. Funds without donor restriction are more
exible in nature and are critical in supporting
structural operating expenses and transformative,
strategic initiatives. In this way, the endowment
bridges the gap between revenue that is brought in
from tuition and research grants, and the critical
costs associated with the University’s teaching and
researchactivities.

HARVARD UNIVERSITY
FINANCIAL OVERVIEW
OCTOBER 2022
1
R I
TAS
R I
TAS
Dear Members of the Harvard Community,
For the most recent fiscal year, which ended on June 30, 2022, the return on the Harvard endowment
was -1.8% and the value stood at $50.9 billion. The endowment also distributed more than $2.1 billion
toward the University’s operating budget, which continues to represent more than one-third of annual
operating revenue.
The disparity between fiscal year 2021 (FY21) and fiscal year 2022 (FY22) returns was stark and reinforces
the necessity of focusing on long-term, risk adjusted returns. Among the headwinds we faced this past
year, several market factors weighed negatively on performance.
• By far the most significant impact was the poor performance of global equity markets over
the course of the year. The S&P 500, Nasdaq Composite, Nasdaq Small Cap, and the ACWI — 
benchmarks for domestic and global equities — declined by 11%, 23%, 27% and 16%, respectively.
In addition, two other less significant factors weighed upon performance:
• While our benchmark relative performance with respect to public equities, hedge funds, and
private equities had been unusually strong over the past four fiscal years, FY22 was not a strong
benchmark relative year. Notably, however, HMC’s five-year benchmark relative performance — a far
more important metric — remains very strong and reinforces the eective turnaround HMC has made.
• A number of institutional investors leaned into the conventional energy sector, through
either equities or commodity futures, adding materially to their total return. HMC did not
participate in these returns given the University’s commitment to tackling the impacts of
climate change, supporting sustainable solutions, and achieving our stated net Zero goals.
Notably, the highest risk asset classes — i.e., the private portfolios of venture capital, buyout, and real
estate — were the strongest performers. In fact, the more private assets an investor had in its portfolio
in FY22, the stronger their performance. This is somewhat counterintuitive and may indicate that private
managers have not yet marked their portfolios to reflect general market conditions. This phenomenon
does make us cautious about forward-looking returns in private portfolios.
For example, the venture capital portion of HMC’s private equity portfolio returned high single digits
despite the deeply negative performance of relevant public equity indices. On the other hand, some
venture managers have meaningful exposure to public companies, which declined with public markets.
Accordingly, the performance of venture portfolios during FY22 was largely a function of the proportion
of public companies held in those portfolios.
We expect that the end of the current calendar year might present meaningful adjustments to these
valuations, as investment managers audit their portfolios. Under existing accounting conventions for
venture portfolios, investment managers generally use the most recent round of financing to mark
investments. This convention may slow the process of moving existing valuations to fair value. This
circumstance is not unique to Harvard — other institutional investors with large private portfolios will
almost certainly face the same dynamic.
Message from the CEO
OCTOBER
2022
HMC FY22 Endowment Report.indd 1HMC FY22 Endowment Report.indd 1 2022-10-05 1:52 PM2022-10-05 1:52 PM

HARVARD UNIVERSITY
HARVARD MANAGEMENT COMPANY
OCTOBER 2022 2
Given this environment, we are particularly pleased that we were able to sell close to $1 billion
of private equity funds in the secondary market during the summer of 2021 — a time of significant
ebullience — avoiding the discounts these funds would likely face today.
Harvard’s Risk Tolerance
Harvard engaged in a years-long analysis of its risk tolerance to balance the desire for continued growth
in the endowment with the University’s steady reliance on annual distributions. In November 2021, the
Corporation approved a proposal of the Harvard Finance Committee and the HMC Board to moderately
increase the risk level of the portfolio. Noting how expensive the overall market was at the time, HMC
decided to increase the portfolio risk level slowly over a multi-year period to avoid investing heavily
at prevailing valuations. This increase will eventually make our risk level more consistent with that of
various peers, although it will still be lower than some.
Net Zero Eorts
HMC is proud to be deeply engaged in the issue of sustainability. We are particularly excited about
two eorts. First, HMC became the first U.S. endowment to make its own operations carbon neutral
for FY22. Working with a third-party vendor, we measured our greenhouse gas emissions, sought
opportunities to reduce future emissions, and secured osets through carbon dioxide removal (CDR).
Our goal continues to be mitigation of emissions wherever possible. For the emissions we cannot abate,
our guiding principles for CDR are durability, additionality, quality carbon accounting and monitoring,
and they may not result in harm to surrounding ecosystems and communities. Second, HMC has been
an active investor in technology-driven climate transition investments. A more detailed report on our
eorts for these important initiatives will be available in the 2023 Climate Report.
Diversity, Equity & Inclusion
For many years, HMC has worked to address the lack of gender and racial diversity in the financial
industry — among our team, our universe of external managers, and portfolio investments.
We last reported on the diversity of our external managers in 2020. Since then, the percentage of
diverse, active U.S.-based managers has grown. While we are pleased with our eorts to date, there is
certainly more work to be done. HMC continues to actively seek out opportunities to invest with diverse
managers and to maintain a sta that reflects those same principles.
In Closing
The disparity in performance between FY21 and FY22 serves to highlight both the value of the endowment
to Harvard University during times of economic adversity, as well as the need to focus on long-term
returns. We remain confident that the steps we have taken — and those still in process — to construct a
portfolio that serves the University’s long-term interests will allow Harvard to maintain and increase its
critical support of students, faculty, and research for generations to come.
Best regards,
N.P. “Narv” Narvekar
Chief Executive Ocer
HMC FY22 Endowment Report.indd 2HMC FY22 Endowment Report.indd 2 2022-10-05 1:52 PM2022-10-05 1:52 PM

HARVARD UNIVERSITY
HARVARD MANAGEMENT COMPANY
PricewaterhouseCoopers LLP, 101 Seaport Boulevard, Boston, MA 02210
T: (617) 530 5000, F: (617) 530 5001, www.pwc.com/us
Report of Independent Auditors
To the Joint Committee on Inspection of the Governing Boards of Harvard University
Opinion
We have audited the accompanying consolidated financial statements of Harvard University and its
subsidiaries (the “University”), which comprise the consolidated balance sheet as of June 30, 2022, and
the related consolidated statements of changes in net assets with general operating account detail and of
changes in net assets of the endowment for the year ended June 30, 2022, and of cash flows for the years
ended June 30, 2022 and 2021, including the related notes (collectively referred to as the “consolidated
financial statements”).
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the University as of June 30, 2022, the changes in its net assets for the year ended
June 30, 2022, and its cash flows for the years ended June 30, 2022 and 2021 in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (US GAAS). Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
required to be independent of the University and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other Matter
We previously audited the consolidated balance sheet as of June 30, 2021, and the related consolidated
statements of changes in net assets with general operating account detail, of changes in net assets of the
endowment and of cash flows for the year then ended (the balance sheet and the statements of changes in
net assets with general operating account detail and of changes in net assets of the endowment are not
presented herein), and in our report dated October 13, 2021, we expressed an unmodified opinion on those
consolidated financial statements. In our opinion, the information set forth in the accompanying
summarized financial information as of June 30, 2021 and for the year then ended is consistent, in all
material respects, with the audited consolidated financial statements from which it has been derived.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America,
and for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of consolidated financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the University’s
ability to continue as a going concern for one year after the date the consolidated financial statements are
issued.

HARVARD UNIVERSITY
INDEPENDENT AUDITOR’S REPORT
2
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the consolidated financial statements.
In performing an audit in accordance with US GAAS, we:
●
●
●
●
●
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements.
Obtain an understanding of internal control relevant to the University audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the University’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the University’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Harvard University Financial Report Fiscal Year 2022, but does not include the
consolidated financial statements and our auditor’s report thereon. Our opinion on the consolidated
financial statements does not cover the other information, and we do not express an opinion or any form
of assurance thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and consider whether a material inconsistency exists between the other information and
the consolidated financial statements or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the
other information exists, we are required to describe it in our report.
Boston, Massachusetts
October 12, 2022

HARVARD UNIVERSITY
INDEPENDENT AUDITOR’S REPORT
 
with summarized nancial information as of June 30, 2021
June 30
In thousands of dollars 2022 2021
ASSETS:
Cash and cash equivalents  ,  ,
Receivables, net (Note 4) , ,
Prepayments and deferred charges , ,
Operating leases — right of use assets (Note 18) , ,
Notes receivable, net (Note 5) , ,
Pledges receivable, net (Note 6) ,, ,,
Fixed assets, net (Note 7) ,, ,,
Interests in trusts held by others (Note 3) , ,
Securities pledged to counterparties, at fair value (Note 3) , ,
Investment portfolio, at fair value (Note 3) ,, ,,
TOTAL ASSETS ,, ,,
LIABILITIES:
Accounts payable  ,  ,
Deferred revenue and other liabilities ,, ,,
Operating lease liabilities (Note 18) , ,
Other liabilities associated with the investment portfolio (Notes 3 and 10) , ,
Liabilities due under split interest agreements (Note 9) , ,,
Bonds and notes payable (Note 10) ,, ,,
Accrued retirement obligations (Note 11) , ,,
Government loan advances (Note 5) , ,
TOTAL LIABILITIES ,, ,,
NET ASSETS ,, ,,
TOTAL LIABILITIES AND NET ASSETS ,, ,,
Without donor
restrictions
With donor
restrictions
June 30
2022 2021
NET ASSETS:
General Operating Account (GOA) (Note 8)  ,,  ,, ,,  ,,
Endowment (Note 8) ,, ,, ,, ,,
Split interest agreements (Note 9) , , ,
TOTAL NET ASSETS ,,  ,, ,, ,,

The accompanying notes are an integral part of the consolidated nancial statements.
HARVARD UNIVERSITY
CONSOLIDATED FINANCIAL STATEMENTS
      
    
with summarized nancial information for the year ended June 30, 2021
For the year ended
Without Donor With Donor June 30
In thousands of dollars Restrictions Restrictions 2022 2021
OPERATING REVENUE:
Net student income (Notes 2 and 12)  ,, ,,  ,
Sponsored support (Note 13)
Federal government – direct costs , , ,
Federal government – indirect costs , , ,
Non-federal sponsors – direct costs ,  , , ,
Non-federal sponsors – indirect costs , , , ,
Total sponsored support , , , ,
Gifts for current use (Note 14) , , , ,
Investment income:
Endowment returns made available for operations (Note 8) , ,, ,, ,,
GOA returns made available for operations , , ,
Other investment income , , , ,
Total investment income , ,, ,, ,,
Other revenue (Note 15) , , ,
Net assets released from restriction ,, (,,)
TOTAL OPERATING REVENUE ,, , ,, ,,
OPERATING EXPENSES:
Salaries and wages ,, ,, ,,
Employee benets (Note 11) , , ,
Services purchased , , ,
Depreciation (Note 7) , , ,
Space and occupancy , , ,
Supplies and equipment , , ,
Interest (Note 10) , , ,
Scholarships and other student awards (Note 12) , , ,
Other expenses (Note 16) , , ,
TOTAL OPERATING EXPENSES ,, ,, ,,
NET OPERATING SURPLUS , , , ,
NONOPERATING ACTIVITIES:
Income from GOA investments , , ,
GOA realized and change in unrealized (depreciation)/appreciation, net (Note 3) (,) (,) ,,
GOA returns made available for operations (,) (,) (,)
Change in pledge balances (Note 6) , , (,)
Change in interests in trusts held by others (,) (,) 
Gifts for facilities and loan funds (Note 14) , , ,
Change in retirement obligations (Note 11) , , ,
Other changes (,) (,) (,)
Transfers between GOA and endowment (Note 8) (,) , (,) ()
Transfers between GOA and split interest agreements (Note 9) , , ,
Non-operating net assets released from restrictions , (,)
TOTAL NONOPERATING ACTIVITIES (,) , (,) ,,
GENERAL OPERATING ACCOUNT NET CHANGE DURING THE YEAR (,) , , ,,
Endowment net change during the year (,) (,,) (,,) ,,
Split interest agreements net change during the year (Note 9) (,) (,) ,
NET CHANGE DURING THE YEAR (,) (,,) (,,) ,,
Net assets, beginning of year ,, ,, ,, ,,
NET ASSETS, END OF YEAR ,, ,, ,, ,,
The accompanying notes are an integral part of the consolidated nancial statements.

HARVARD UNIVERSITY
CONSOLIDATED FINANCIAL STATEMENTS
         
with summarized nancial information for the year ended June 30, 2021
For the year ended
June 30
Without Donor
Restrictions
With Donor
Restrictions In thousands of dollars 2022 2021
Investment return (Note 3):
Income from general investments  ,  , ,  ,
Realized and change in unrealized (depreciation)/appreciation, net (,) (,) (,,) ,,
Total investment return (,) (,) (,) ,,
Endowment returns made available for operations (,) (,,) (,,) (,,)
Net investment return (,) (,,) (,,) ,,
Gifts for endowment (Note 14) , , , ,
Transfers between endowment and the GOA (Note 8) , (,) , 
Capitalization of split interest agreements (Note 9) , , ,
Change in pledge balances (Note 6) , , (,)
Change in interests in trusts held by others (Note 8) (,) (,) ,
Other changes (,) (,) (,) (,)
Net assets released from restrictions , (,)
NET CHANGE DURING THE YEAR (,) (,,) (,,) ,,
Net assets of the endowment, beginning of year ,, ,, ,, ,,
NET ASSETS OF THE ENDOWMENT, END OF YEAR  ,, ,, ,, ,,
The accompanying notes are an integral part of the consolidated nancial statements.

HARVARD UNIVERSITY
CONSOLIDATED FINANCIAL STATEMENTS
    
In thousands of dollars
For the year ended
June 30
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in net assets  (,,)  ,,
Adjustments to reconcile change in net assets to net cash (used in) operating activities:
Depreciation , ,
Amortization of premium and discount related to bonds and notes payable (,) (,)
Realized and change in unrealized depreciation/(appreciation), net ,, (,,)
Change in fair value of interest rate exchange agreements (,) (,)
Change in interests in trusts held by others , (,)
Change in liabilities due under split interest agreements (,) ,
Gifts of donated securities (,) (,)
Proceeds from the sales of gifts of unrestricted securities , ,
Gifts for restricted purposes (,) (,)
Cost of issuance of debt  
Loss on disposal of assets , ,
Change in accrued retirement obligations (,) (,)
Non-cash operating lease costs , ,
Changes in operating assets and liabilities:
Receivables, net (,) (,)
Prepayments and deferred charges (,) (,)
Pledges receivable, net (,) ,
Accounts payable (,) ,
Deferred revenue and other liabilities (,) ,
Operating lease liability (,) (,)
NET CASH USED IN OPERATING ACTIVITIES (,,) (,,)
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans made to students, faculty, and sta (,) (,)
Payments received on student, faculty, and sta loans , ,
Change in other notes receivable , (,)
Proceeds from the sales and maturities of investments ,, ,,
Purchase of investments (,,) (,,)
Change associated with repurchase agreements (,) ,
Additions to xed assets (,) (,)
NET CASH PROVIDED BY INVESTING ACTIVITIES , ,,
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in overdrafts included in accounts payable () ,
Change in split interest agreements from new contributions, income and payments to annuitants (,) (,)
Proceeds from issuance of debt ,
Debt repayments (,) (,)
Proceeds from the sales of gifts of restricted securities , ,
Gifts for restricted purposes , ,
Change in government loan advances (,) (,)
NET CASH PROVIDED BY FINANCING ACTIVITIES ,, ,
NET CHANGE IN CASH , ,
Cash, beginning of year ,, ,,
CASH, END OF YEAR ,, ,,
Cash and cash equivalents (per Consolidated Balance Sheets)
 ,  ,
Cash and cash equivalents held in investments (Note 3) ,, ,,
TOTAL CASH AND CASH EQUIVALENTS ,, ,,
Supplemental disclosure of cash ow information:
Accounts payable related to xed asset additions  ,  ,
Cash paid for interest  ,  ,
The accompanying notes are an integral part of the consolidated nancial statements.

HARVARD UNIVERSITY
CONSOLIDATED FINANCIAL STATEMENTS
Basis of presentation
The accompanying consolidated nancial statements
have been prepared on the accrual basis of accounting
and include the accounts of the University and aliated
organizations controlled by the University. Signicant inter-
aliate accounts and transactions have been eliminated.
Funds transferred to the University on behalf of specic
beneciaries (agency funds) are recorded as assets and
liabilities in the Consolidated Balance Sheets and are not
included in the Consolidated Statements of Changes in
NetAssets with General Operating Account Detail.
The consolidated nancial statements include certain prior
year summarized comparative information in total, not by
net asset classication. This information is not presented in
sucient detail to conform to generally accepted accounting
principles (GAAP). Accordingly, such information should
be read in conjunction with the University’s nancial
statements for the year ended June 30, 2021, from which
the summarized information is derived. Certain prior
year amounts have been reclassied to conform to current
yearpresentation.
Net asset classications
For the purposes of nancial reporting, the University
classies resources into two net asset categories pursuant
to any donor-imposed restrictions and applicable law.
Accordingly, the net assets of the University are classied in
the accompanying consolidated nancial statements in the
categories that follow:
   — Net assets not subject to
donor-imposed restrictions. Funds invested in xed assets
and unrestricted endowment funds comprise 81% of the
University’s net assets without donor-imposed restrictions
as of June 30, 2022. In addition, this category includes
gifts and endowment income balances where the donor
restriction has been met, University-designated loan funds,
and other current funds.
   —Net assets subject to legal
or donor-imposed restrictions that will be satised
either by actions of the University, the passage of time,
or both. These net assets include net assets subject to
donor-imposed restrictions that are invested to provide a
perpetualsource of income to the University. Generally,
donors of these assets require the University to maintain
and invest the original contribution in perpetuity but
permit the use of some or all investment returns for general
or specic purposes. The appreciation on these perpetual
contributions must be reported as net assets with donor
restrictions until appropriated for spending in accordance
with Massachusetts law. Also included in this category
are gifts donated for a particular purpose and amounts
subject to time restrictions such as funds pledged for
futurepayment.
Revenues from sources other than contributions are
generally reported as increases in net assets without
donor restrictions. Expenses are reported as decreases in
net assets without donor restrictions. Gains and losses
on investments are reported as increases or decreases in
net assets without donor restrictions, unless their use
is restricted by donor stipulations or by law. Investment
returns earned by restricted donor funds are initially
classied as net assets with donor restrictions and then
reclassied to net assets without donor restrictions when
expenses are appropriated or incurred for their intended
purpose. Expirations of donor restrictions on net assets
1. 
Harvard University (the “University”) is a private, not-for-
prot institution of higher education with approximately
7,100 undergraduate and 14,100 graduate students in
scal year 2022, as compared to 5,200 undergraduate and
13,400 graduate students in scal year 2021. Established
in 1636, the University includes the Faculty of Arts and
Sciences, the John A. Paulson School of Engineering and
Applied Sciences, the Division of Continuing Education, ten
graduate and professional Schools, the Radclie Institute
for Advanced Study, a variety of research museums and
institutes, and an extensive library system to support the
teaching and research activities of the Harvard community.
The President and Fellows of Harvard College (the
“Corporation”), a governing board of the University, has
oversight responsibility for all of the University’s nancial
aairs. The Corporation delegates substantial authority to
the Schools and departments for the management of their
resources and operations.
The University includes Harvard Management Company
(HMC), a wholly owned subsidiary founded in 1974 to
manage the University’s investment assets. HMC is
governed by a Board of Directors that is appointed by
theCorporation.
2.     

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Endowment and GOA returns liquidated from investments
and made available for operations over the course of the
scal year are distributed to University department and
program budgets to spend, subject to donor restrictions
where applicable.
While the University has no intention of doing so, there
are additional investments held by the University and the
endowment that could be liquidated in the event of an
unexpected disruption. While a portion of the endowment
is subject to donor restrictions, there is $9.1 billion and
$9.4 billion in endowment funds without donor restrictions
at June 30, 2022 and 2021, respectively and $4.7 billion
and $4.8 billion of General Operating Account investments
(GOA) at June 30, 2022 and 2021, respectively, that could be
accessed with the approval of the Corporation and subject to
the redemption provisions described in Note 3.
Revenue recognition
Revenue is recognized when control of promised goods
or services is transferred to customers, in an amount that
reects the consideration the University expects to be
entitled to in exchange for those goods or services.
Student income is derived from degree programs as well
as executive and continuing education programs and
includes tuition, fees, and board and lodging. Student
income is recognized ratably over the academic period of
the course or program oered based on time elapsed, and
scholarships awarded to students reduce the amount of
revenue recognized. The University’s individual schools
have various billing and academic cycles and the majority of
our programs are completed within the scal year. Student
income received in advance of services to be rendered is
recorded as deferred revenue which totaled $209.1 million
and $226.0 million, respectively, at June 30, 2022 and 2021,
which are primarily recognized in the subsequent scalyear.
Total student income of $1.2 billion and $888.3 million
was recorded during the years ended June 30, 2022 and
2021, respectively. Student tuition, fees, board and lodging
at published rates is summarized as follows for the years
ended June 30, 2022 and 2021 (in thousands of dollars):
2022 2021
Undergraduate program  ,  ,
Graduate and professional degree programs , ,
Continuing education and executive programs , ,
Board and lodging , ,
Scholarships applied to student charges were $505,904 and $435,959 for the
years ended June 20, 2022 and 2021, respectively.
are reported as reclassications from net assets with
donor restrictions to net assets without donor restrictions
and appear as “Net assets released from restrictions” and
“Non-operating net assets released from restrictions” in the
Consolidated Statements of Changes in Net Assets.
Liquidity and availability
As part of the University’s liquidity management, it has
a policy to structure its nancial assets to be available as
its general expenditures, liabilities and other obligations
come due. A signicant portion of the University’s annual
expenditures are funded by operating revenues in the
current year including student income, sponsored support,
endowment returns made available for operations, gifts for
current use and other revenues.
The University’s nancial assets available within one year
of the balance sheet date for general expenditure, such as
operating expenses, scheduled principal payments on debt,
and capital construction costs not nanced with debt, are as
follows (in thousands):
June 30,
2022 2021
FINANCIAL ASSETS
Cash and cash equivalents  ,  ,
Receivables, net , ,
Pledge receivables due in one year , ,
Cash equivalents and short-term investments held separately by General Operating Account (GOA)
1
,, ,,
Endowment returns made available for operations in the following year ,, ,,
TOTAL FINANCIAL ASSETS AVAILABLE WITHIN ONE YEAR ,, ,,
LIQUIDITY RESOURCES
Credit facility, undrawn balance ,, ,,
Tax-exempt commercial paper, undrawn balance ,, ,,
Taxable commercial paper, undrawn balance ,, ,,
TOTAL FINANCIAL ASSETS AND RESOURCES AVAILABLE WITHIN ONE YEAR  ,, ,,

1
The University has a policy of maintaining liquidity outside of the General Investment Accounting (GIA) through a combination of cash equivalents and
short-term investments, as referenced on page 7 in the Financial Overview.
HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unconditional contributions including pledges are
recognized immediately and classied as either net
assets with donor restrictions or net assets without
donor restrictions. Conditional contributions for which
cash is received are accounted for as a liability within
deferredrevenue.
Sponsored support of $975.8 million includes support
from governmental and private sources. Certain sponsored
arrangements are considered exchange arrangements,
and revenue under these agreements is recognized based
on the University’s fulllment of the contract, which
is typically based on costs incurred or the achievement
of milestones. Other sponsored support is considered
contribution revenue, which is recognized when any
donor-imposed conditions have been met, if applicable.
Sponsored conditional contributions received, where the
barrier to entitlement is not yet overcome, are recorded
as deferred revenues of $61.1 million and $68.2 million
as of June 30, 2022 and 2021, respectively. As of June 30,
2022, the University also had $1.5 billion awarded but not
yet expended contributions related to sponsored programs
where the condition had not yet been met. This is subject
to federal appropriations. Funding received in advance of
recognition is recorded as deferred revenue.
Other revenue of $838.3 million in scal 2022
and $693.9million in scal 2021 includes several
revenue streams considered exchange contracts with
customers totaling $728.1 million for scal year 2022
and $605.3million in scal 2021. These revenues are
recognized at the point in time goods or services are
provided. Deferred revenues related to other revenue of
$104.7 million and $102.1 million were recorded as of
June30, 2022 and 2021, which are primarily recognized
inthe subsequent scal year.
Measure of operations
Revenues earned, expenses incurred, and returns made
available for operations for the purpose of teaching,
conducting research, and the other programs and services
of the University are the components of “Net operating
surplus” in the Consolidated Statements of Changes in
Net Assets with General Operating Account Detail. The
University’s non-operating activity within the Consolidated
Statements of Changes in Net Assets with General Operating
Account Detail includes contributions to the University’s
building construction and renovation funds, investment
returns (net of amounts made available for operations),
change in pledge balances, long-term benet plan obligation
funding changes, and other infrequent transactions.
Collections
The University’s vast array of museums and libraries
contains priceless works of art, historical treasures, literary
works, and artifacts. These collections are protected and
preserved for public exhibition, education, research, and
the furtherance of public service. They are neither disposed
of for nancial gain nor encumbered in any manner.
Accordingly, such collections are not recorded for nancial
statement purposes. Proceeds on deaccessioned collections
are used to fund new collections or the direct care of
existing collections. Direct care is dened as general care
for the preservation of a collection.
Insurance programs
The University, together with the Harvard-aliated
teaching hospitals, has formed a captive insurance
company, Controlled Risk Insurance Company (CRICO), to
provide limited professional liability, general liability, and
medical malpractice insurance for its shareholders. The
University self-insures a portion of its professional liability
and general liability programs and maintains a reserve for
incurred claims, including those related to Harvard Medical
School activities not occurring in the aliated teaching
hospitals. CRICO provided malpractice coverage applies
with no deductible for medical professionals practicing
within Harvard’s University Health Services department,
the School of Dental Medicine, and the T.H. Chan School
of Public Health. The University also maintains reserves
for the self-insured portion of claims related to automobile
liability, property damage, and workers’ compensation;
these programs are supplemented with commercial excess
insurance above the University’s self-insured retention. In
addition, the University is self-insured for unemployment,
the primary retiree health plan, and all health and dental
plans for active employees. The University’s claims
liabilities are recognized as incurred, including claims that
have been incurred but not reported, and are included in
operating expenses.
Tax
The University is a tax-exempt organization under
Section501(c)(3) of the Internal Revenue Code.
On December 22, 2017, the Tax Cuts and Jobs Act (the
“Act”) was enacted. The Act impacts the University in
several ways, including the addition of excise taxes on
executive compensation and net investment income, as
well as new rules for calculating unrelated business taxable
income. The University records an estimate for related tax
expense based on currently available regulatory guidance of
the Act and continues to evaluate the impact of the Act on
current and future tax positions.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Use of estimates
The preparation of nancial statements in accordance with
U.S. GAAP requires management to make estimates and
assumptions that aect reported amounts and disclosures.
Actual results could dier from those estimates.
New accounting pronouncements
Eective July 1, 2021, the University adopted ASU
2018-15, Intangibles — Goodwill and Other — Internal-
Use Software (Subtopic 350-40): Customer’s Accounting
for Implementation Costs Incurred in a Cloud Computing
Arrangement That is a Service Contract. This guidance
aligns the requirements for capitalizing implementation
costs incurred in a hosting arrangement that is a
service contract with the requirements for capitalizing
implementation costs incurred to develop or obtain
internal-use software or software licenses. The University
adopted ASU 2018-15 prospectively. This guidance did not
have a signicant impact on the University’s consolidated
nancialstatements.
Eective July 1, 2021, the University adopted ASU 2020-07,
Presentation and Disclosures by Not-for-Prot Entities for
Contributed Nonnancial Assets. This guidance is intended
to increase transparency on how contributed nonnancial
assets are to be used and valued. The University adopted
ASU 2020-07 prospectively. This guidance did not have
a signicant impact on the University’s consolidated
nancialstatements.
Eective July 1, 2021, the University adopted ASU
2018-14, Disclosure Framework — Changes to the Disclosure
Requirements for Dened Benet Plans, which amends
ASC715, Compensation — Retirement Benets. This
accounting pronouncement modies the disclosure
requirements for employers that sponsor dened benet
pension or other postretirement plans. The University
adopted ASU 2018-14 on a retrospective basis. The eects
ofadopting this amendment are addressed in Note 11.
Eective July 1, 2020, the University adopted ASU 2019-03,
Not-for-Prot Entities (Topic 958): Updating the Denition
of Collections. The accounting pronouncements updates
the denition of “collections” to align with the denition
used by the American Alliance of Museums. The change
in the denition requires proceeds from sales of collections
to be used for acquisition of additional collections or
direct care of existing collections. The University adopted
ASU 2019-03 prospectively. The guidance did not have
a signicant impact on the University’s consolidated
nancialstatements.
3. 
Investments are presented at fair value in accordance with
GAAP and under the guidelines prescribed by the HMC
investment valuation policy, which is reviewed and approved
by the HMC Board of Directors on an annual basis.
The majority of the University’s investments are managed
by HMC in the GIA, a pooled investment account that
consists primarily of endowment assets. Certain other
investments such as cash, short-term investments, split
interest agreements and other assets, are managed
separately from the GIA.
The University’s investment holdings as of June 30, 2022 and 2021 presented on the Consolidated Balance Sheets are
summarized in the following table (in thousands ofdollars):
2022 2021
Investment portfolio assets
Pooled general investment account assets  ,,  ,,
Other investments ,, ,,
nvestment portfolio, at fair value ,, ,,
Securities pledged to counterparties, at fair value , ,
TOTAL INVESTMENT ASSETS ,, ,,
Pooled general investment account liabilities , ,
Interest rate exchange agreement , ,
TOTAL OTHER LIABILITIES ASSOCIATED WITH THE INVESTMENT PORTFOLIO , ,
TOTAL INVESTMENTS, NET ,, ,,
I

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2022 and 2021, University net investments were comprised of the following components (in thousands
ofdollars):
2022 2021
POOLED GENERAL INVESTMENT ACCOUNT
Endowment
1
 ,,  ,,
General operating account ,, ,,
Split interest agreements , ,,
Other internally designated funds ,, ,,
TOTAL POOLED GENERAL INVESTMENT ACCOUNT NET ASSETS ,, ,,
OTHER INVESTMENTS OUTSIDE THE GENERAL INVESTMENT ACCOUNT
General operating and other investments
2
,, ,,
Split interest agreements , ,
TOTAL OTHER INVESTMENTS OUTSIDE THE GENERAL INVESTMENT ACCOUNT ,, ,,
TOTAL INVESTMENTS, NET ,, ,,
1
As of June 30, 2022, the total net assets of the endowment of $50,877,680 is comprised of investments in the GIA of $48,798,038, pledges of $1,433,186,
interests in trusts held by others of $403,626, and $242,830 of other non-GIA investments and GIA interest and dividends net of all internal and external
management fees and expenses. See Note 8 for further composition of the net assets of the endowment.
2
Consists primarily of repurchase agreements, US government securities, money markets, and xed income funds, totaling $2,238,277 and $1,563,715 as of
June30, 2022 and 2021, respectively.
Investment return
A summary of the University’s total return on investments for scal years 2022 and 2021 is presented below (in thousands
ofdollars):
2022 2021
Return on pooled general investment account:
Realized and change in unrealized (depreciation)/appreciation, net  (,,)  ,,
Interest, dividend, fees, and expenses, net , ,
Total return on pooled general investment account
1
(,,) ,,
Return on other investments:
Realized and change in unrealized depreciation/(appreciation), net (,) ,
Interest, dividend, fees, and expenses, net , ,
Total return on other investments (,) ,
Realized and change in unrealized appreciation on interest rate exchange agreement, net , ,
TOTAL RETURN ON INVESTMENTS
(,,) ,,
1
Net of all internal and external management fees and expenses.
2
Total return on investments is comprised of returns on the endowment, GOA, Split Interest Agreements and other.
Fair value hierarchy
The University’s investments have been categorized based
upon the fair value hierarchy in accordance with ASC 820,
which prioritizes the inputs to valuation techniques used to
measure fair value of investment assets and liabilities into
three levels:
 1 Unadjusted quoted prices in active markets that
are accessible at the measurement date for identical,
unrestricted assets or liabilities;
 2 Quoted prices in markets that are not considered to
be active or nancial instruments for which all signicant
inputs are observable, either directly or indirectly;
 3 Prices or valuations that require inputs
that are signicant to the fair value measurement,
unobservable and/or require the University to develop its
ownassumptions.
Investments in externally managed funds where the
University utilizes net asset values (as reported by
external managers) as a practical expedient for fair value
measurements are excluded from the fair value hierarchy.
The level of an asset or liability within the fair value
hierarchy is based on the lowest level of any input that is
signicant to the fair value measurement. The University
endeavors to utilize all relevant and available information in
measuring fair value.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a summary of the levels within the fair value hierarchy for those investment assets and liabilities subject to
fair value measurement as of June 30, 2022 and summarized as of June 30, 2021 (in thousands of dollars):
2022 2021
NAV as
Practical
Level 1 Level 2 Level 3 Expedient Total Total
ASSETS:
Cash and cash equivalents
1
 ,, ,,  ,,
Repurchase agreements  , , ,
Domestic equity ,,  ,, ,, ,,
Foreign equity , ,, ,, ,,
Global equity ,, ,, ,,
Domestic xed income ,, , ,, ,, ,,
Foreign xed income , , ,
Emerging market equity and debt , ,, ,, ,,
High yield ,  , , ,
Hedge funds ,, ,, ,,
Private equity ,, ,, ,, ,,
Natural resources , , , ,
Real estate , ,, ,, ,,
Ination-indexed bonds ,, ,, ,,
Due from brokers , , , , ,
Other investments , , ,
INVESTMENT ASSETS SUBJECT TO
FAIR VALUE LEVELING  ,, ,  ,,  ,,  ,,  ,,
Other investment assets not subject to fair value
2
, ,
TOTAL INVESTMENT ASSETS
 ,,  ,,
Interests in trusts held by others
4
, , ,
NONINVESTMENT ASSETS SUBJECT
TO FAIR VALUE LEVELING , , ,
TOTAL ASSETS  ,,  ,,
LIABILITIES:
5
Due to brokers  , ,  ,
Other liabilities subject to fair value  , , ,
INVESTMENT LIABILITIES SUBJECT
TO FAIR VALUE LEVELING , , , ,
Other investment liabilities not subject to
fair value , ,
TOTAL INVESTMENT LIABILITIES
3
, ,
Liabilities due under split interest agreements
4
 , , ,,
NONINVESTMENT LIABILITIES SUBJECT
TO FAIR VALUE LEVELING , , ,,
TOTAL LIABILITIES ,, ,,

1
This amount includes cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents as presented in the Consolidated
Statements of Cash Flows. This excludes money markets held in “Cash and cash equivalents” on the Consolidated Balance Sheets of $65.0 million as of
June 30, 2022 and 2021, respectively, which are Level 1 investments.
2
As of June 30, 2022 and 2021 other assets not subject to fair value consist primarily of receivables for transactions that settled subsequent to the balance sheet
date of $480,949 and $612,801, respectively .
3
As of June 30, 2022 and 2021, total investment assets, net equal $58,596,702 and $60,675,901, respectively.
4
Amounts excluded from investments and included separately on the University’s Consolidated Balance Sheets.
5
Includes fair value of an interest rate ex change agreement on the University’s debt portfolio of $8,609 and $31,313 as of June 30, 2022 and 2021, respectively.
HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a rollforward of Level 3 investments for the year ended June 30, 2022 and the summarized June 30, 2021
rollforward of Level 3 investments (in thousands of dollars).
Net
realized
gains/
(losses)
Net change
in unrealized
appreciation/
(depreciation)
1
Beginning
balance as of
July 1, 2021
Transfers
outof
Level 3
2
Ending
balance as of
June 30, 2022
Purchases/
contributions
Sales/
distributions
Transfers
into Level 3
INVESTMENT ASSETS:
High yield  ,  ,  (,)  ,  (,) ,
Private equity ,, , , , (,)  (,) ,,
Real estate ,  , ,
Due from brokers ,  ,
INVESTMENT ASSETS
SUBJECT TO FAIR VALUE
LEVELING ,,  , , , (,,) (,) ,,
Interests in trusts held by others , (,) (,) ,
NONINVESTMENT ASSETS
SUBJECT TO FAIR VALUE
LEVELING , (,) (,) ,
TOTAL ASSETS SUBJECT
TO FAIR VALUE LEVELING ,,  , (,) , (,,) (,) ,,
INVESTMENT LIABILITIES:
Other liabilities subject to fair value  ,  (,)  (,)  , ,
TOTAL LIABILITIES SUBJECT
TO FAIR VALUE LEVELING , (,) (,) , ,
NET ASSETS SUBJECT TO
FAIR VALUE LEVELING ,,  , (,) , (,,) (,) ,,
1
Total change in unrealized appreciation/(depreciation) relating to Level 3 investment assets and investment liabilities still held by the University at June 30,
2022 is $95,568 and is reected in “Realized and change in unrealized (depreciation)/appreciation, net” in the Consolidated Statements of Changes in
NetAssets.
2
The transfers out of Level 3 represent interests in private companies that underwent an initial public oering during the scal year.
Beginning
balance as of
July 1, 2020
Net
realized
gains/
(losses)
Net change
in unrealized
appreciation/
(depreciation)
1
Purchases/
contributions
Sales/
distributions
Transfers
into Level 3
Transfers
outof
Level 3
Ending
balance as of
June 30, 2021
PRIOR YEAR NET ASSETS SUBJECT
TO FAIR VALUE LEVELING  ,,  (,)  ,  ,  (,)  ,  (,) ,,
1
Total change in unrealized appreciation/(depreciation) relating to Level 3 investment assets and investment liabilities still held by the University at June 30,
2021 is $206,133 and is reected in “Realized and change in unrealized (depreciation)/appreciation, net” in the Consolidated Statements of Changes in
NetAssets.
Investment strategy and risk
The University utilizes a number of wholly owned
subsidiary entities to support its investment activities.
The consolidated nancial statements include all assets,
liabilities, income, and expenses associated with these
entities and intercompany accounts and transactions have
been eliminated during consolidation.
The University’s investment strategy incorporates a
diversied asset allocation approach and maintains,
within dened limits, exposure to the movements of the
global public and private equity, xed income, real estate,
and commodities markets. Exposure to these markets
is achieved through direct investments in individual
securities, investments in special purpose vehicles
and/or through investments in vehicles advised by
externalmanagers.
Investments in global markets involve a multitude of
risks such as price, interest rate, market, sovereign,
currency, liquidity and credit risks, amongst many
others. The University manages exposure to these risks
through established policies and procedures related to
its ongoing investment diligence and operational due
diligence programs. The University also considers manager
concentration risk. As of June 30, 2022, 16% of the GIA
NAV was invested across 5 diversied fund managers. The
University anticipates that the value and composition of its
investments may, from time to time, uctuate substantially
in response to any or all of the risks described herein.
Cash and cash equivalents
Cash and cash equivalents are recorded at cost, which
approximates fair value, and includes cash in bank accounts,
institutional money market funds and other temporary

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
investments held for working capital purposes with
original maturities of three months or less. Cash and cash
equivalents do not include cash balances held as collateral
by the University. Cash and cash equivalents designated
for investment purposes are included in the “Investment
portfolio, at fair value” in the Consolidated Balance Sheets.
Repurchase agreements
The University Consolidated Balance Sheets display the
assets generated by repurchase transactions. The University
enters into these transactions under agreements containing
master netting arrangements. The University requires
the fair value of the collateral exchanged under these
agreements to be equal to or in excess of the total amount
of the agreement, including interest where applicable. At
June 30, 2022 and 2021 the University had gross asset
repurchase agreements of $0.8billion and $0.1 billion
which were fully collateralized. The University does not
oset repurchase agreements that are subject to master
netting arrangements or similar arrangements on the
University’s Consolidated BalanceSheets.
Dividend and interest income
Dividend income is recognized net of applicable
withholding taxes on the ex-dividend date. Non-cash
dividends are recorded at the fair value of the securities
received. Interest income and expense is recorded net of
applicable withholding taxes, on an accrual basis. The
University amortizes bond premiums and accretes bond
discounts using the eective yield method and when cash
collection is expected.
In connection with its investments in derivatives, the
University maintains master netting agreements and
collateral agreements with its counterparties. These
agreements provide the University the right, in the event
of default by the counterparty (such as bankruptcy or a
failure to pay or perform), to net a counterparty’s rights and
obligations under the agreement and to liquidate and oset
collateral against any net amount owed by the counterparty.
Collateral, generally in the form of debt obligations issued
by the US Treasury, is exchanged on a daily basis as
required by uctuations in the market.
Traded securities
Instruments listed or traded on a securities exchange are
valued at the last quoted price on the primary exchange
where the security is traded. Where there is no readily
available closing price on the valuation date, long positions
are valued at the bid price and short positions are valued at
the ask price. Restrictions that are attached to a security are
factored into the valuation of that security, reective of the
estimated impact of those restrictions. Investments in non-
exchange traded debt and equity instruments are primarily
valued using inputs provided by independent pricing
services or by broker/dealers who actively make markets in
these securities.
Derivatives
The University uses a variety of nancial instruments
with o-balance sheet risk involving contractual or
optional commitments for future settlement, which are
exchange traded or executed over the counter (OTC). These
instruments are used to (1) manage exposure to certain
asset classes and/or various market risks, (2) arbitrage
mispricings of related securities and (3) to manage the
interest, cost and risk associated with its outstanding and/
or future debt. These instruments are classied as due
to/from brokers and may include option, swap, credit
default, interest rate, and forward contracts. These types of
instruments are primarily valued using industry standard
models with independent market inputs, or by broker
quotes. Inputs such as prices, spreads, curves, and/or broker
quotes are evaluated for source reliability and consistency
with industry standards. Counterparty marks obtained
and utilized to determine daily collateral requirements
are also used to corroborate input reasonability. The
University considers current market conditions including
interest rate and credit risks in its evaluation of inputs,
pricing methodologies, and models utilized to determine
fairvalues.
Specic credit limits are established for counterparties
based on their individual credit ratings. Credit limits
are monitored daily by the University and are adjusted
according to policy, as necessary. Some of the nancial
instruments entered into by the University contain credit-
risk-related contingency features that allow the parties to the
agreement to demand immediate payment for outstanding
contracts and/or collateral.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2021
Remaining
unfunded
commitments
Remaining
unfunded
commitments
Estimated
remaining life
2
Estimated
remaining life
2
Fair value
1
As of June 30, 2022
Fair value
1
Private equity funds  ,,  ,,  –   ,,  ,,  – 
Real estate funds ,, ,,  –  ,, ,,  – 
Other externally managed funds
3
TOTAL
,,
,,
,,
,,
 –  ,,
,,
,,  – 
,,
The following table presents information about the University’s derivatives by primary risk exposure for the years ended
June30, 2022 and 2021 (in thousands of dollars):
1
Represents the fair value of the funded portion of investments with remaining unfunded commitments.
2
The estimated remaining lives of these funds, expressed in years, are forward-looking projections based on the University’s estimates and could vary signicantly
depending on the investment decisions of external managers, changes in the University’s investment portfolio, and other circumstances.
3
Investments in externally managed funds primarily include exposures to hedge funds and natural resources.
For the
year ended
June 30, 2022
For the
year ended
June 30, 2021 As of June 30, 2022 As of June 30, 2021
Average
Quarterly
Notional
Gross
derivative
assets
Gross
derivative
liabilities
Average
Quarterly
Notional
Gross
derivative
assets
Gross
derivative
liabilities
Net prot/
(loss)
4
Net prot/
(loss)
4
Primary risk exposure
Equity instruments  ,,  ,  ,  ,  ,,  ,  ,  (,)
Fixed income instruments
1
, , , , , ,
Currency instruments , , , , , , , ,
Credit instruments , , () , , ()
SUBTOTAL  , , ,  , , (,)
TOTAL COUNTERPARTY
NETTING
2
(,) (,) (,) (,)
NET AMOUNTS INCLUDED
IN THE CONSOLIDATED
BALANCE SHEETS
, , , ,
Collateral
Cash collateral received/posted  ,
Securities collateral received/
posted
5
, , , ,
TOTAL SECURITIES COLLATERAL
RECEIVED/POSTED
5
, , , ,
NET AMOUNT , (,) , (,)
NET AMOUNT IN ACCORDANCE
WITH ASC 
6
,   ,  
1
For the year ended June 30, 2022 and 2021 the balance represents an interest rate exchange swap on the University’s debt portfolio.
2
GAAP permits the netting of derivative assets and liabilities and the related cash collateral received and paid when a legally enforceable master netting
agreement exists between the University and a derivative counterparty.
3
Included within the “Investment portfolio, at fair value” and “Other liabilities associated with the investment portfolio” line items of the Consolidated
BalanceSheets.
4
Included within “Realized and change in unrealized (depreciation)/appreciation, net” within the Consolidated Statements of Changes in Net Assets.
5
Includes securities posted to meet initial margin requirements on exchange traded futures.
6
Excludes any over-collateralized amounts in accordance with ASC 210.
External advisors
Investments managed by external advisors include
investments in private equity, real estate, natural resources,
hedge funds, and other externally managed funds. The
University generally utilizes the capital account balance
provided by the external advisor as a practical expedient
to fair value. To evaluate the adequacy of these fair value
measurements, the University has assessed factors
including, but not limited to, the external advisor’s
adherence to fair value principles in calculating the capital
account balance, the existence of transactions at NAV at
the measurement date and the existence or absence of
certain restrictions at the measurement date. In addition,
the University evaluates these external advisors through
ongoing due diligence and operational oversight, which
includes an analysis of an advisor’s use of and adherence to
fair value principles.
The University, as an investor, has commitments to make
periodic contributions in future periods to the investments
managed by external advisors. The amounts of these
expected disbursements as of June 30, 2022 and 2021 are
disclosed below (in thousands of dollars):

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments in externally managed funds generally have
limited redemption options for investors and, subsequent
to nal closing, may or may not permit subscriptions by
new or existing investors. These entities may also have the
ability to impose gates, lockups and other restrictions on an
investor’s ability to readily redeem out of their investment
interest in the fund.
Direct investments
Direct investments are primarily valued using a
combination of independent appraisals and/or one or
more industry standard valuation techniques (e.g., income
approach, market approach, or cost approach). The income
approach is primarily based on the investment’s anticipated
future income using one of two principal methods: the
discounted cash ow method or the capitalization method.
Inputs and estimates developed and utilized with these
techniques may be subjective, unobservable, and require
judgment regarding signicant matters such as estimating
the amount and timing of future cash ows, forward pricing
assumptions and the selection of discount and capitalization
rates that appropriately reect market and credit risks.
The market approach derives investment value through
comparison to recent and relevant market transactions
with similar investment characteristics. The cost approach
is utilized when the cost of the investment is determined
to be the best representation of fair value. This method is
typically used for newly purchased or undeveloped assets.
When applicable, the University examines market data
and collaborates closely with independent appraisers to
arrive at the best estimation of fair value for each respective
asset. The HMC Board of Directors discusses the valuation
process and results with HMC management, and makes
determinations on signicant matters impacting valuation
that may arise from time to time.
The following table presents the ranges of signicant
unobservable inputs used to value the University’s Level3
assets. While the inputs described below represent the
range of inputs utilized as of the measurement date, these
inputs may change over time, which may have a material
eect on the valuation of these types of investments in
thefuture.
As of June 30, 2022
Level 3
investments
subject to
fair value
(in thousands
of dollars)
2
As of June 30, 2021
Range of
inputs utilized in
valuation model
3
Weighted
average
of inputs
utilized in
valuation
model
Signicant unobservable input
by asset class
1
Level 3
investments
subject to
fair value
(in thousands
of dollars)
2
Range of
inputs utilized in
valuation model
3
Weighted
average
of inputs
utilized in
valuation
model
High yield:
Income approach discount rate
Collateral coverage recovery rate
EBITDA multiple
 ,
.% – .%
%
.x – .x
.%
%
.x
 ,
.% – .%
%
.x – .x
.%
%
.x
Real estate:
Income approach discount rate
Income approach growth rate
Discount for lack of marketability
,
.%
.%
.%
.%
.%
.%
,
.%
.%
.%
.%
.%
.%
Private equity:
Income approach discount rate
Cost multiple
EBITDA multiple
,
.% – .%
.x
.%
.x
,
.% – .%
.x
.x
.%
.x
.x
Other liabilities subject to fair value
Market interest rate
NET AMOUNT
(,)
,
.% – .% .%
(,)
,
.% – .% .%

1
The fair value of investments may be determined using multiple valuation techniques.
2
Included within Level 3 investments is $1,517,162 and $2,244,931 as of June 30, 2022 and 2021, respectively, which were valued using other inputs including,
butnot limited to, single source broker quotations, third party pricing and recent transactions.
3
The range of inputs encompasses a variety of investment types within each asset class.
HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2022 2021
Receivable Allowance Net Receivable Allowance Net
Student loans:
Government revolving
Institutional
 ,
,
 
,
 ,
,
 ,
,
 
,
 ,
,
Total student loans , , , , , ,
Faculty and sta loans
Other loans
,
,

,
,
,
,
,

,
,
,
TOTAL , , , , , ,
4. 
The major components of receivables, net of reserves for
doubtful accounts of $16.5 million and $13.7 million as of
June 30, 2022 and 2021, respectively, were as follows (in
thousands of dollars):
5.  
Notes receivable are recorded initially at face value plus accrued interest, which approximates fair value. Notes receivable, and
related allowance for doubtful accounts, were as follows (in thousands of dollars):
2022 2021
Federal sponsored support  ,  ,
Executive education , ,
Publications , ,
Leases , ,
Tuition and fees , ,
Non-federal sponsored support , ,
Gift receipts , ,
Other , ,
TOTAL RECEIVABLES, NET , ,
Government revolving loans are funded principally with
federal advances to the University under the Perkins Loan,
the Health Professions Student Loan (HPSL) and Loans
for Disadvantaged Students in Health Professions (LDS)
Programs. These advances totaled $29.5million and
$35.8million as of June 30, 2022 and 2021, respectively,
and are classied as liabilities in the Consolidated Balance
Sheets. During scal year 2018, the Perkins Loan Program
ended and as a result the University began making required
repayments to the government. In scal year 2022, the
University made the requested $5.9 million repayment.
Interest earned on the revolving and institutional loan
programs is reinvested to support additional loans. The
repayment and interest rate terms of the institutional loans
vary considerably.
Faculty and sta notes receivable primarily consists of
m
ortgage and educational loans. Mortgages include
shared appreciation loans, loans that bear interest at the
applicable federal rate and interest-free loans. In addition,
certain mortgages that bear interest at the current market
r
ate or applicable federal rate may be subsidized for an
initial period. The educational loans are primarily zero-
interestloans.
The University assesses the adequacy of the allowance
f
or doubtful accounts by evaluating the loan portfolio,
including such factors as the diering economic risks
associated with each loan category, the nancial condition of
specic borrowers, the economic environment in which the
borrowers operate, the level of delinquent loans, the value
of any collateral, and, where applicable, the existence of any
guarantees or indemnications. In addition to these factors,
the University reviews the aging of the loans receivable and
the default rate in comparison to prior years. The allowance
is adjusted based on these reviews. The University considers
the allowance at June 30, 2022 and 2021 to be reasonable
and adequate to absorb potential credit losses inherent in
the loan portfolio.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6.  
Unconditional promises to donate to the University in the
future are initially recorded at fair value (pledge net of
discount) and subsequently amortized over the expected
payment period, net of an allowance for uncollectible
pledges. The University’s indicative 1- to 15-year taxable
unsecured borrowing rate is used to discount pledges
receivable at the end of the scal year they are received.
Discounts of $246.6 million and $76.3 million for the years
ended June 30, 2022 and 2021, respectively, were calculated
using rates ranging from 1.0% to 3.9%.
Pledges receivable included in the nancial statements as
of June 30, 2022 and 2021 are expected to be realized as
follows (in thousands of dollars):
Pledges receivable as of June 30, 2022 and 2021 have
been designated for the following purposes (in thousands
ofdollars):
Because of uncertainties with regard to realizability
and valuation, bequest intentions and other conditional
promises are only recognized as assets if and when the
specied conditions are met. Non-bequest conditional
pledges totaled $110.0 million and $115.1 million as of
June30, 2022 and 2021, respectively.
2022 2021
General Operating Account balances:
Gifts for current use ,  ,
Non-federal sponsored awards , ,
Construction and life income , ,
Total General Operating Account balances ,, ,,
Endowment ,, ,,
TOTAL PLEDGES RECEIVABLE, NET  ,,  ,,
2022 2021
Within one year
Between one and ve years
More than ve years
Less: discount and allowance for
 ,
,,
,
 ,
,,
,
uncollectible pledges (,) (,)
TOTAL PLEDGES RECEIVABLE, NET  ,,  ,,
7. 
Fixed assets are reported at cost or, if a gift, at fair value
as of the date of the gift, net of accumulated depreciation.
Depreciation is computed using the straight-line method
over the estimated useful lives of the assets.
The major categories of xed assets as of June 30, 2022 and
2021 are summarized as follows (in thousands of dollars):
2022 2021
Estimated useful life
(in years)
Research facilities  ,,  ,, *
Classroom and oce facilities ,, ,, 
Housing facilities ,, ,, 
Other facilities , , 
Service facilities ,, ,, 
Libraries , , 
Museums and assembly facilities , , 
Athletic facilities , , 
Land ,, ,, /
Construction in progress , , /
Equipment ,, ,, **
SUBTOTAL AT COST ,, ,,
Less: accumulated depreciation (,,) (,,)
FIXED ASSETS, NET ,, ,,
* Estimated useful lives of components range from 10 to 45 years.
** Estimated useful lives of equipment range from 4 to 15 years.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Certain University facilities are subject to restrictions as
to use, structural modications, and ownership transfer.
Included in the xed asset balances are restricted facilities
with a net book value of $267.4 million and $280.7 million
as of June 30, 2022 and 2021, respectively.
The costs of research facilities are separated into the
shell, roof, nishes, xed equipment, and services. These
components are separately depreciated.
Equipment includes general and scientic equipment,
computers, software, furniture, and vehicles.
The University has asset retirement obligations of
$189.2million and $200.1 million, which are included in
“Deferred revenue and other liabilities” in the Consolidated
Balance Sheets as of June 30, 2022 and 2021, respectively.
Right-of-use assets from nance leases of $52.3 million
and $59.0 million are included in “Fixed assets” in the
Consolidated Balance Sheets as of June 30, 2022 and
2021, respectively. Lease liabilities from nance leases of
$88.2million and $96.8 million are included in “Deferred
revenue and other liabilities” in the Consolidated Balance
Sheets as of June 30, 2022 and 2021, respectively.
Endowment
The University’s endowment consists of approximately
14,400 separate funds established over many years for
a wide variety of purposes. Endowment fund balances
are classied and reported in accordance with donor
specications and state law. The endowment includes both
donor-restricted endowment funds and funds functioning
as endowment which are not subject to donor-imposed
restrictions, however decisions to spend their principal
require the approval of the Corporation and therefore are
classied as Board-designated endowment funds. The
majority of the endowment is invested in the GIA (Note 3).
The University is also the beneciary of certain irrevocable
trusts held and administered by others. The estimated fair
values of trust assets, which include the present values
of expected future cash ows from outside trusts and the
fair value of the underlying assets of perpetual trusts, are
recognized as assets and increases in net assets when the
required trust documentation is provided to the University.
The fair values of these trusts are provided by the external
trustees and are adjusted annually by the University.
These are included as Level 3 investments in the fair value
hierarchy table in Note 3.
The University’s endowment distribution policies are
designed to preserve the value of the endowment in real
terms (after ination) and generate a predictable stream
of available income. Each fall, the Corporation approves
the endowment distribution for the following scal year.
Distribution from an underwater endowment fund (a fund
below its historic dollar value) could continue in limited and
dened circumstances under the University’s endowment
2022 2021
Without
donor
restrictions
With donor
restrictions Total
Without
donor
restrictions
With donor
restrictions Total
NATURE OF SPECIFIC NET ASSETS
Perpetual endowment funds  ,, ,,  ,, ,,
Endowment funds and appreciation subject to
distribution policy and appropriation ,, ,, ,, ,,
Endowment funds without restriction, board
designated and subject to distribution policy  ,, ,,  ,, ,,
Pledge balances ,, ,, ,, ,,
Interests in trusts held by others , , , ,
TOTAL ENDOWMENT ,, ,, ,, ,, ,, ,,
Operating ,, ,, ,, ,,
Unexpended contributions and
endowment distributions ,, ,, ,, ,,
Student loan funds , , , ,
TOTAL GENERAL OPERATING ACCOUNT ,, ,, ,, ,, ,, ,,
Split interest agreements (Note 9) , , , ,
TOTAL NET ASSETS ,, ,, ,, ,, ,, ,,
8.       
The University’s net assets consisted of the following as of June 30, 2022 and 2021 (in thousands of dollars):

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
distribution policy. To the extent that the fair value of a
donor restricted endowment fund falls below its historic
dollar value it would be reported as a reduction of net assets
with donor restrictions.
At June 30, 2022 and 2021, funds in a decit position
were reported in net assets with donor restrictions and are
comprised as follows (in thousands):
2022 2021
Fair value of underwater endowment funds  ,  ,
Historic dollar value , ,
TOTAL DEFICIT OF UNDERWATER
ENDOWMENT FUNDS (,) ()
The endowment distribution is based in part on
presumptive guidance from a formula that is intended to
provide budgetary stability by smoothing the impact of
annual investment gains and losses. The formula’s inputs
reect expectations about long-term returns and ination
rates. For scal year 2022, the endowment distribution
approved by the Corporation (prior to decapitalizations) was
equal to 4.2% of the fair value of the endowment invested
in the GIA as of the beginning of the scal year. The total
endowment distribution made available for operations
was $2.1 billion and $2.0 billion in scal year 2022 and
2021,respectively.
Each year the Corporation also approves certain
decapitalizations from the endowment to support strategic,
mission-critical activities or objectives that are typically
one-time or time-limited and therefore, are excluded from
net operating surplus. These decapitalizations totaled
$36.7 million and $32.8 million in scal year 2022 and
2021, respectively. These additional decapitalizations, in
combination with the endowment distribution, resulted
in an aggregate payout rate of 4.2% and 5.2% in scal year
2022 and 2021, respectively.
General operating account
The GOA consists of the general or current funds of the
University as well as the assets and liabilities related to
student and faculty loans and facilities. The GOA accepts,
manages, and pays interest on deposits made by University
departments; invests surplus working capital; makes loans;
and arranges external nancing for major capital projects.
It is used to manage, control, and execute all University
nancial transactions, except for those related to investment
activities conducted by HMC.
9.   
Under split interest agreements, donors enter into trust
or other arrangements with the University in which the
University receives benets that are shared with other
beneciaries and institutions. Split interest agreement (SIA)
investment assets are invested primarily in the GIA and
publicly-traded securities, a small segment is managed by
an external advisor, and all are recorded in the “Investment
portfolio, at fair value” in the University’s Consolidated
Balance Sheets. Additional disclosures are included in
Note3. Associated liabilities are recorded at the present
value of estimated future payments due to beneciaries and
other institutions. These liabilities are calculated using the
University’s current taxable unsecured borrowing rate of
3.5% and 1.0% as of June 30, 2022 and 2021, respectively. All
split interest agreement net assets and the respective activity
are reported within net assets with donor restrictions. Upon
termination of a split interest agreement, the net assets are
transferred to the GOA or endowment accordingly.
The changes in split interest agreement net assets for
scal years 2022 and 2021 were as follows (in thousands
ofdollars):
1
Shown at net present value. The undiscounted value of these gifts was $26,626 and $35,078 for the years ended June 30, 2022 and 2021, respectively.
2022 2021
Investment return:
Investment income  ,  ,
Realized and change in unrealized (depreciation)/appreciation, net (,) ,
Total investment return (,) ,
Gifts (Note 14)
1
, ,
Payments to annuitants (,) (,)
Transfers to endowment (,) (,)
Transfers between SIA and the GOA (,) (,)
Change in liabilities and other adjustments , (,)
NET CHANGE DURING THE YEAR (,) ,
Total split interest agreement net assets, beginning of year , ,
TOTAL SPLIT INTEREST AGREEMENT NET ASSETS, END OF YEAR , ,

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2022 2021
Split interest agreement investments (Note 3)
Charitable remainder trusts  ,,  ,,
Charitable lead trusts , ,
Charitable gift annuities , ,
Pooled income funds , ,
Total split interest agreement investments
1
,, ,,
Liabilities due under split interest agreements:
Amounts due to beneciaries (,) (,)
Amounts due to other institutions (,) (,)
Total liabilities due under split interest agreements (,) (,,)
TOTAL SPLIT INTEREST AGREEMENT NET ASSETS, END OF YEAR , ,
1
For the year ended June 30, 2022, $934,970 of SIA investments are held in the pooled general investment account and $651,587 of SIA investments are held in
the other investments outside the general investment account. For the year ended June 30, 2021, $1,021,209 of SIA investments are held in the pooled general
investment account and $771,478 of SIA investments are held in the other investments outside the general investment account. Refer to Note 3.
Split interest agreement net assets as of June 30, 2022 and 2021 consisted of the following (in thousands of dollars):
10.    
Bonds and notes payable as of June 30, 2022 and 2021 were as follows (in thousands of dollars):
1
The weighted average maturity of the portfolio on June 30, 2022 was 18.5 years.
2
For xed-rate bonds the eective rate is calculated as: coupon rate x (par value / book value*). For variable rate bonds the eective rate is the one-year average
rate. Eective rates are exclusive of the Series Y interest rate exchange agreement, which would increase the overall portfolio rate by 0.06% (3.96% vs. 3.90%).
*Book value = par value + unamortized original issuance premium - unamortized original issuance discount, underwriter’s discount, and cost of issuance.
3
Par only—balances exclude original issuance premiums/discounts.
Fiscal year Fiscal year of Eective Outstanding principal
of issue nal maturity
1
rate
2
2022
3
2021
3
TAXEXEMPT BONDS:
Variable-rate demand bonds:
Series R – daily -  .%  ,  ,
Series Y – weekly   .% , ,
Total variable-rate bonds .% , ,
Fixed-rate bonds:
Series 2010A   .% ,
Series 2016A   .% ,, ,,
Series 2020A   .% , ,
Series 2022B   .% ,
Total xed-rate bonds .% ,, ,,
TOTAL TAXEXEMPT BONDS .% ,, ,,
TAXABLE BONDS
Fixed-rate bonds:
Series 2008A   .% , ,
Series 2008D   .% , ,
Series 2010C   .% , ,
Series 2013A   .% , ,
Series 2016B   .% ,, ,,
Series 2020B   .% , ,
Series 2022A   .% ,
Total xed-rate bonds .% ,, ,,
TOTAL TAXABLE BONDS .% ,, ,,
Notes payable Various Various Various , ,
Unamortized original issuance premium/discount, net , ,
Unamortized bond issuance costs (,) (,)
TOTAL BONDS AND NOTES PAYABLE .% ,, ,,

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Interest expense related to bonds and notes payable, net
of amortization and accretion, was $183.0million and
$180.6 million for scal 2022 and 2021, respectively. The
interest expense in the Consolidated Statements of Changes
in Net Assets with General Operating Account Detail includes
additional components related to capital leases. Excluding
unamortized discounts and premiums, unamortized
underwriter’s discount and unamortized cost of issuance,
scheduled principal payments are (in thousands of dollars):
In scal year 2022, the University issued $500 million of
taxable xed-rate Series 2022A Bonds and $250 million
($207.8 million par) of tax-exempt xed-rate Series 2022B
Bonds, which were designated and independently veried as
Green Bonds. Proceeds from the Series 2022A issue will be
used to nance future University capital spending. Proceeds
from the Series 2022B issue will be used to nance or
renance three sustainable capital projects on campus, in
support of the University’s sustainability goals.
Osetting the scal year 2022 bond issuances were
$97.0million of principal maturities, along with
$36.9million of amortizing bond premium (net of
amortizing fees and issuance discounts), resulting in an
overall increase to the University’s bonds and notes payable
from $5.5 billion to $6.1 billion.
The University is rated Aaa by Moody’s Investors Service
and AAA by Standard & Poor’s Global Ratings. Both the
Moody’s rating and the Standard & Poor’s rating were re-
armed in February 2022. Additionally, both Moody’s and
Standard & Poor’s rated Harvard’s Series 2022A and Series
2022B bond issuances Aaa/AAA in April 2022.
The University has one unsecured, revolving credit facility
with a syndicate of banks totaling $1.5 billion, which expires
in March 2024. The facility was renewed in March 2021.
There was no outstanding drawn balance on the credit
facility at June 30, 2022.
The University has taxable commercial paper available
totaling $2 billion. There was no outstanding drawn balance
on the taxable commercial paper line at June 30, 2022.
The University has tax-exempt commercial paper available
totaling $1 billion. There was no outstanding drawn balance
on the tax-exempt commercial paper line at June 30, 2022.
In August 2021, the University obtained reauthorization of
its tax-exempt commercial paper program.
As of June 30, 2022, the University had $232.7 million
of variable rate demand bonds outstanding with either
a daily or weekly interest rate reset. In the event that the
University receives notice of any optional tender on its
variable rate demand bonds, or if the bonds become subject
to mandatory tender, the purchase price of the bonds will be
paid from the remarketing of such bonds. However, if the
remarketing proceeds are insucient, the University will
have a general obligation to purchase the bonds tendered
with cash on hand.
Interest rate exchange agreements
In scal 2022, the University had in place one interest rate
exchange agreement, used to manage the interest cost and
risk associated with a portion of its outstanding variable
ratedebt.
The fair value of the interest rate exchange agreement
was ($8.6) million and ($31.3) million as of June 30, 2022
and 2021, respectively, and is recorded in “Other liabilities
associated with the investment portfolio” on the University’s
Consolidated Balance Sheets.
Fiscal year Principal payments
2023  ,
2024 ,
2025 ,
2026 ,
2027 ,
Thereafter ,,
TOTAL PRINCIPAL PAYMENTS ,,

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
11. 
The University oers current employees a choice of
health plans, a dental plan, short-term and long-term
disability plans, life insurance, tuition assistance, and
a variety of other benets such as subsidized passes for
public transportation and for Harvard athletic facilities.
In addition, the University has retirement plans covering
substantially all employees.
The University uses a measurement date of June 30 for its
pension and postretirement health plans.
457(b) deferred compensation plan
The University oers a non-qualied deferred compensation
plan under Internal Revenue Code 457(b) to a select group
of employees. There is no University contribution related
to the plan. The University has recorded both an asset and
a liability related to the plan of $191.5 million as of June 30,
2022 and $207.8 million as of June 30, 2021; the assets
are included in “Prepayments and deferred charges” and
the liabilities are included in “Deferred revenue and other
liabilities” on the University’s Consolidated Balance Sheets.
Pension benets
All eligible faculty members and sta are covered by
retirement programs that include a dened benet
component, a dened contribution component, or a
combination of the two.
In accordance with the Employee Retirement Income
Security Act (ERISA) requirements, the University has
established a trust to hold plan assets for its dened
benet pension plans. The fair value of the trust’s assets
was $851.2 million and $1.1 billion as of June 30, 2022
and 2021, respectively. During scal years 2022 and 2021,
the University made cash contributions to the dened
benet pension plan of $20.0 million and $61.2 million,
respectively. The University recorded expenses for its
dened contribution plans of $155.1 million for scal year
2022 and $153.4 million for scal year 2021.
Postretirement health benets
The University provides postretirement health coverage and
life insurance to substantially all of its employees. As of
June 30, 2022, the University had internally designated and
invested $1.0 billion in the GIA to fund the postretirement
health benet accrued liability of $835.2 million. As of
June 30, 2021, the University had internally designated
and invested $1.0 billion to fund the postretirement health
benet accrued liability of $1.0 billion.
The following table sets forth the pension and postretirement
plans’ funded status that is reported in the Consolidated
Balance Sheets as of June 30, 2022 and 2021 (in thousands
of dollars):
1
Represents costs associated with a voluntary early retirement program oered to plan participants.
2
Measurement of the University’s pension obligation including assumed salary increases (required by GAAP).
3
These amounts totaling $928,514 as of June 30, 2022 and $1,078,647 as of June 30, 2021 are included in the “Accrued Retirement Obligations” line in the
Consolidated BalanceSheets.
Pension benets Postretirement health benets
2022 2021 2022 2021
Change in projected benet obligation:
Projected benet obligation, beginning of year  ,,  ,,  ,,  ,
Service cost , , , ,
Interest cost , , , ,
Plan participants’ contributions , ,
Gross benets paid (,) (,) (,) (,)
Actuarial gain (,) (,) (,) (,)
Plan amendments ()
Special termination benets
1

PROJECTED BENEFIT OBLIGATION, END OF YEAR
2
, ,, , ,,
Change in plan assets:
Fair value of plan assets, beginning of year ,, ,
Actual return on plan assets (,) ,
Employer contributions , , , ,
Plan participants’ contributions , ,
Gross benets paid (,) (,) (,) (,)
FAIR VALUE OF PLAN ASSETS, END OF YEAR , ,,
UNFUNDED STATUS
3
(,) (,) (,) (,,)

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Pension benets Postretirement health benets
2022 2021 2022 2021
Components of net periodic benet cost:
Operating
Service cost  ,  ,  ,  ,
Special termination benets 
Total operating activity , , , ,
Non-operating
Interest cost , , , ,
Expected return on plan assets (,) (,)
Amortization of:
Actuarial loss/(gain) , , (,) (,)
Prior service cost/(credit)   (,) (,)
Total non-operating activity
1
, , , ,
Total net periodic benet cost , , , ,
Other amounts recognized in non-operating activity
in unrestricted net assets:
Current year net actuarial loss/(gain) , (,) (,) (,)
Plan amendments ()
Amortization of:
Prior service (cost)/credit () () , ,
Actuarial (loss)/gain (,) (,) , ,
Total other amounts recognized in non-operating activity
1
, (,) (,) ,
TOTAL RECOGNIZED IN CONSOLIDATED STATEMENTS
OF CHANGES IN NET ASSETS WITH GENERAL OPERATING
ACCOUNT DETAIL , (,) (,) ,
1
These amounts totaling ($142,745) in scal year 2022 and ($105,987) in scal year 2021 include gains and losses and other changes in the actuarially
determined benet obligations arising in the current period but that have not yet been reected within net periodic benet cost/(income) and are included
inthe “Change in Retirement Obligations” line in the Consolidated Statements of Changes in Net Assets with General Operating Account Detail.
Cumulative amounts recognized as non-operating changes in net assets without donor restrictions are summarized as
follows for the years ended June 30, 2022 and 2021 (in thousands of dollars):
Pension benets Postretirement health benets
2022 2021 2022 2021
Net actuarial loss/(gain)
Prior service cost/(credit)
 ,

 ,

 (,)
(,)
 (,)
(,)
CUMULATIVE AMOUNTS RECOGNIZED IN
UNRESTRICTED NET ASSETS , , (,) (,)
The accumulated pension benet obligation (ABO) is a
measurement of the University’s pension benet obligation,
based on past and present compensation levels and does
not include assumed salary increases. The ABO was
$846.8million at June 30, 2022 and $1.0 billion at June 30,
2021. The funded status disclosed above has been prepared
in accordance with pension accounting rules. When
measured on an IRS funding basis, which informs the
University’s required cash contribution amount, the plan
was overfunded at January 1, 2022.
Net periodic benet cost
Components of net periodic benet cost and other amounts
recognized in the Consolidated Statements of Changes
in Net Assets with General Operating Account Detail are
summarized as follows for the years ended June 30, 2022
and 2021 (in thousands ofdollars):

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Pension benets Postretirement health benets
2022 2021 2022 2021
Weighted-average assumptions used to determine benet obligation
as of June 30:
Discount rate .% .% .% .%
Compensation increase trend:
Average rate / .% / .%
Initial rate .% / .% /
Ultimate rate .% / .% /
Year of ultimate  /  /
Cash balance (or similar formula) interest crediting rate .% .% / /
Pension increases for in-payment benets increase trend:
Average rate / .% / /
Initial rate .% / / /
Ultimate rate .% / / /
Year of ultimate  / / /
Health care cost trend rate:
Current rate / / .% .%
Ultimate rate / / .% .%
Year of ultimate / /  
Weighted-average assumptions used to determine net periodic
benet (income)/cost:
Discount rate .% .% .% .%
Expected long-term rate of return on plan assets .% .% / /
Compensation increase trend:
Average rate .% .% .% .%
Initial rate .% .% / /
Ultimate rate / .% / /
Year of ultimate /  / /
Pension increases for in-payment benets increase trend:
Average rate .% .% / /
Health care cost trend rate:
Initial rate / / .% .%
Ultimate rate / / .% .%
Year of ultimate / /  
Other assumptions and health care cost trend rates used in determining the year end obligation as well as the net periodic
benet (income)/cost of the pension and postretirement health plans are summarized as follows for scal years 2022
and2021:
The expected return on pension plan assets is determined
by utilizing an independent advisor’s capital markets model,
which takes into account the expected real return, before
ination, for each of the pension portfolio’s asset classes,
as well as the correlation of any one asset class to every
other asset class. This model calculates the real returns
and correlations and derives an expected real return for the
entire portfolio, given the percentage weighting allocated to
each asset class. After calculating the expected real return,
an assessment is made to accommodate the expected
ination rate for the forthcoming period. The nal expected
return on assets is the aggregate of the expected real return
plus the expected ination rate.
Plan assets
The actual asset allocation of the investment portfolio for
the pension plan at June 30, 2022 and 2021, along with
target allocations for June 30, 2023, is as follows:
Asset allocation by category for pension plan:
Fixed income securities
2023 Target
-%
June 30, 2022
. %
June 30, 2021
. %
Equity securities
Cash
-
-
.
.
.
.
TOTAL OF ASSET ALLOCATION CATEGORIES . % . %

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The University’s investment strategy for the pension
portfolio is to manage the assets across a broad and
diversied range of investment categories, both domestic
and international. The objective is to achieve a risk-adjusted
return that is in line with the long-term obligations that the
University has to the pension plan beneciaries. During
scal year 2022, the University increased its allocation
to xed income securities to manage the interest rate
volatility associated with its pension obligations. The
University expects to keep this strategy in future years. The
investment program is also managed to comply with all
ERISAregulations.
The following is a summary of the levels within the fair
value hierarchy for the pension plan assets subject to
fair value measurement as of June 30, 2022 and 2021 (in
thousands of dollars):
2022 2021
Level 1 Level 2 Level 3
NAV as
practical
expedient Total Total
PLAN ASSETS:
Cash and short-term investments  , ,  ,
Domestic equity , , ,
Foreign equity ,  , , ,
Domestic xed income , , ,
Foreign xed income ,
Emerging market equity and debt , , ,
Hedge funds   
Private equity , , ,
High yield , , ,
PLAN ASSETS SUBJECT TO FAIR VALUE LEVELING  ,  , , ,,
Other assets not subject to fair value ,
TOTAL PLAN ASSETS , ,,
PLAN LIABILITIES:
Due to brokers  ()
PLAN LIABILITIES SUBJECT TO FAIR VALUE LEVELING ()
TOTAL PLAN LIABILITIES ()
Expected future benet payments
Employer contributions of $10.0 million are expected for
scal year 2023 to fund the pension benet plan.
The following table summarizes expected benet payments
and subsidies for pension and other postretirement health
benets for the University (in thousands of dollars):
Expected benet payments
Fiscal year Pension Postretirement health
2023  ,  ,
2024 , ,
2025 , ,
2026 , ,
2027 , ,
Thereafter , ,

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12.   
Financial aid granted to students in scal 2022 and 2021 is summarized as follows (in thousands of dollars):
2022 2021
Scholarships and other student awards:
Scholarships applied to student income
1
 ,  ,
Scholarships and other student awards paid directly to students , ,
Total scholarships and other student awards , ,
Student employment , ,
Student loans , ,
Agency nancial aid
2
, ,
TOTAL STUDENT FINANCIAL AID , ,
1
Includes $224,863 and $164,232 in scal 2022 and 2021, respectively, of undergraduate scholarships applied to student income.
2
Represents aid from sponsors for which the University acts as an agent for the recipient.
13.  
Total expenditures funded by US government sponsors
orby institutions that subcontract federally sponsored
projects to the University were $642.1 million and
$625.0million in scal year 2022 and 2021, respectively.
The University’s principal source of federally sponsored
funds is the Department of Health and Human Services.
The University also has many non-federal sources of
sponsored awards and grants, including corporations,
foundations, state and local governments, foreign
governments, and research institutes.
Sponsored grants and contracts normally provide for the
recovery of direct and indirect costs. Recovery of related
indirect costs is generally recorded at xed or predetermined
rates negotiated with the federal government and other
sponsors. Predetermined federal indirect cost rates have
been established for the University Area, the Medical
School (including the School of Dental Medicine), and
the T.H.Chan School of Public Health through scal year
2024. Funds received for federally sponsored activity are
subject toaudit.
14. 
Gifts are classied as net assets with or without restrictions
in accordance with donor specications.
Additionally, gifts are categorized by purpose as “Current
use”, “Non-federal sponsored grants”, “Endowment funds”,
“Split interest agreements”, or “Loan funds and facilities”.
2022
Gifts received
Donor redesignations/
other changes Total
Current use  ,  (,) ,
Non-federal sponsored grants , (,) ,
Endowment funds , , ,
Split interest agreements
1
, ,
Loan funds and facilities , , ,
TOTAL GIFTS ,, (,) ,,
1
Shown at net present value. The undiscounted value of these gifts was $26,626 for the year ended June 30, 2022.
Gifts received for the year ended June 30, 2022 are summarized as follows (in thousands of dollars):

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1
Shown at net present value. The undiscounted value of these gifts was $35,078 for the year ended June 30, 2021.
2021
Gifts received
Donor redesignations/
other changes Total
Current use  ,  (,) ,
Non-federal sponsored grants , (,) ,
Endowment funds , , ,
Split interest agreements
1
, ,
Loan funds and facilities , , ,
TOTAL GIFTS ,, (,) ,,
Gifts received for the year ended June 30, 2021 are summarized as follows (in thousands of dollars):
15. 
The major components of other revenue for the years ended
June 30, 2022 and 2021 were as follows (in thousands
ofdollars):
2022 2021
Publications and royalties from copyrights  ,  ,
Royalties from the commercialization of
intellectual property
1
, ,
Services income , ,
Rental and parking
2
, ,
Health and clinic fees , ,
Sales income , ,
Interest income , ,
Other student income , ,
Other , ,
TOTAL OTHER REVENUE  ,  ,
1
Excludes distribution to external parties.
2
The University is the lessor of space and facilities under operating leases,
theincome from which is included in rental and parking.
16. 
The major components of other expenses for the years
ended June 30, 2022 and 2021 were as follows (in
thousandsof dollars):
2022 2021
Subcontract expenses under
sponsoredprojects  ,  ,
Advertising , ,
Publishing , ,
Travel , ,
Taxes and fees , ,
Insurance , ,
Fixed asset impairments , ,
Postage , ,
Telephone , ,
Other , ,
TOTAL OTHER EXPENSES , ,

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2022
Instruction and
academic support Research
Student services
and support
Institutional
support and
auxiliary Total
Salaries and wages  ,,  ,  ,  , ,,
Employee benets , , , , ,
Services purchased , , , , ,
Depreciation , , , , ,
Space and occupancy , , , , ,
Supplies and equipment , , , , ,
Interest , , , , ,
Scholarships and other student awards , ,
Other expense and overhead allocations , , , , ,
TOTAL EXPENSES ,, ,, , ,, ,,
1
The methodology used to allocate expenses for nancial statement purposes is dierent than methodologies used for other purposes, such as
governmentalsurveys.
2021
Instruction and
academic support Research
Student services
and support
Institutional
support and
auxiliary Total
Salaries and wages  ,,  ,  ,  , ,,
Employee benets , , , , ,
Services purchased , , , , ,
Depreciation , , , , ,
Space and occupancy , , , , ,
Supplies and equipment , , , , ,
Interest , , , , ,
Scholarships and other student awards , ,
Other expense and overhead allocations (,) , , , ,
TOTAL EXPENSES ,, ,, , ,, ,,
1
The methodology used to allocate expenses for nancial statement purposes is dierent than methodologies used for other purposes, such as
governmentalsurveys.
17.       
Operating expenses are allocated functionally on a direct
basis. Operations and maintenance expenses are allocated
based on square footage.
Operating expenses by functional classication for the years
ended June 30, 2022 and 2021 were as follows (in thousands
of dollars):
18.  
Lease commitments
The University is the lessee of equipment and space under
operating (rental) and nance leases. The University
determines whether a contract is a lease at inception.
Identied leases are subsequently measured, classied,
and recognized at lease commencement. The University
categorizes leases with contractual terms longer than
twelve months as either operating or nance. The
University’s leases generally have terms that range from
one to ve years for equipment and one to twenty years for
property, with certain leases inclusive of renewal options
if they are considered to be reasonably assured at lease
commencement. Right of use assets and lease liabilities for
operating leases are included in “Operating leases — right
of use assets” and “Operating lease liabilities”, respectively,
in the Consolidated Balance Sheets. Finance lease right of
use assets and lease liabilities are included in “Fixed assets”
and “Deferred revenue and other liabilities”, respectively, in
the Consolidated Balance Sheets. Lease assets represent our
right to use an underlying asset for the lease term and lease
liabilities represent our obligation to make lease payments
arising from the lease.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Operating and nance lease right of use assets and
associated lease liabilities are recognized based on the
present value of future minimum lease payments to be
made over the expected lease term, using the collateralized
incremental borrowing rate at the commencement date in
determining the present value of future payments. Rent
expense related to operating leases, including short-term
leases and variable lease payments, was $101.2 million and
$95.4 million in scal year 2022 and 2021, respectively.
Maturity analysis of the annual undiscounted cash ows
r
econciled to the carrying value of the operating and nance
lease liabilities (in thousands of dollars):
Operating Finance
2023  ,  ,
2024 , ,
2025 , ,
2026 , ,
2027 , ,
Thereafter , ,
TOTAL LEASE PAYMENTS , ,
Less: Imputed Interest (,) (,)
PRESENT VALUE OF LEASE LIABILITIES , ,
Weighted-average remaining lease term and discount rate
for operating and nance leases were as follows:
June 30, 2022
Weighted Average Remaining Lease Term
Operating Leases . 
Finance Leases . 
Weighted Average Discount Rate
Operating Leases .%
Finance Leases .%
As of June 30, 2022, the University has $180.6 million of
future payments under a lease for research facilities and
oce space that have not yet commenced. This lease will
commence during scal year 2023 with a lease term of
15years.
The University leases properties to customers under
agreements that are classied as operating or sales-
type leases. Property leased to others in operating lease
arrangements are included in “Fixed assets” in the
Consolidated Balance Sheets. Revenue is recognized to the
extent that amounts are determined to be collectible.
Fixed asset-related commitments
The University has various commitments for capital
projects involving construction and renovation of certain
facilities, real estate acquisitions, and equipment purchases,
for which the outstanding commitments as of June 30, 2022
totaled approximately $267.2 million.
Environmental remediation
The University is subject to laws and regulations concerning
environmental remediation and has established reserves
for potential obligations that management considers to be
probable and for which reasonable estimates can be made.
These estimates may change substantially depending
on new information regarding the nature and extent of
contamination, appropriate remediation technologies,
and regulatory approvals. Costs of future environmental
remediation have been discounted to their net present value.
Management is not aware of any existing conditions that it
believes are likely to have a material adverse eect on the
University’s nancial position, changes in net assets, or
cash ows.
General
The University is a defendant in various legal actions
arising from the normal course of its operations. While
it isnot possible to predict accurately or determine the
eventual outcome of such actions, management believes
that the outcome of these proceedings will not have
a material adverse eect on the University’s nancial
position, changes in net assets, or cash ows.
The University has evaluated subsequent events through
O
ctober 12, 2022, the date the consolidated nancial
statements were issued. The University has concluded that
no material events have occurred that are not accounted for
in the accompanying consolidated nancial statements or
disclosed in the accompanying notes.

HARVARD UNIVERSITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PRESIDENT AND FELLOWS
OF HARVARD COLLEGE
LAWRENCE S. BACOW
President
PAUL J. FINNEGAN*
Treasurer
TIMOTHY R. BARAKETT
KENNETH I. CHENAULT*
MARIANOFLORENTINO TINO
CUÉLLAR
BIDDY MARTIN
KAREN GORDON MILLS*
DIANA L. NELSON
TRACY PALANDJIAN
PENNY PRITZKER*
DAVID M. RUBENSTEIN
SHIRLEY M. TILGHMAN
THEODORE V. WELLS, JR.*
BOARD OF OVERSEERS
GERALDINE ACUÑASUNSHINE*
MONICA BHAREL+
RAPHAEL W. BOSTIC
MARK J. CARNEY*
ALICE HM CHEN
PAUL L. CHOI
PHILIP HART CULLOM
SANGU J. DELLE+
JANET ECHELMAN
CARLA A. HARRIS
MEREDITH MAX HODGES
MARILYN HOLIFIELD
CHRISTOPHER B. HOWARD
DARIENNE DRIVER HUDSON
VIVIAN HUNT
TYLER JACKS*
JOHN B. KING JR.
RAYMOND J. LOHIER, JR.
SCOTT MEAD+
LAUREN ANCEL MEYERS+
TODD Y. PARK+
MARGARET PURCE
RESHMA SAUJANI
THEA SEBASTIAN
MEGAN RED SHIRTSHAW
VIKAS P. SUKHATME+
LESLIE P. TOLBERT
JAYSON U. TOWEH
WILHEMINA WRIGHT+
SHERYL WUDUNN
OFFICERS
LAWRENCE S. BACOW
President
PAUL J. FINNEGAN
Treasurer
ALAN M. GARBER
Provost
MEREDITH WEENICK
Executive Vice President
PAUL ANDREW
Vice President for Public Aairs
and Communications
MARC GOODHEART
Vice President and Secretary
of the University
MANUEL CUEVASTRISÀN
Vice President for Human Resources
THOMAS J. HOLLISTER
Vice President for Finance and
Chief Financial Ocer
BRIAN K. LEE
Vice President for Alumni Aairs
and Development
DIANE LOPEZ
Vice President and General Counsel
KLARA JELINKOVA
Vice President and
Chief Information Ocer
TBA
Vice President for Campus Services
MARTHA WHITEHEAD
Vice President for the Harvard Library
+ NEW MEMBER FOR 
* JCI MEMBER
AS OF OCTOBER 