BATON ROUGE — A state audit of the LSU System shows the university's financial situation improved by hundreds of millions of dollars despite a drop in tuition revenue. 

LSU finished the 2025 fiscal year up $332 million from 2024 thanks to an increase in non-operating revenue, according to the audit, which became a public record Monday.

The audit says that while operating expenses increased by $28 million, and that the university system had $559 million in state appropriations, $96 million in gifts and $160 million in net investment income. 

The audit attributed the higher expenses to decreases in nongovernmental grants and contracts, as well as a drop in net tuition fee revenue caused by a change in how tuition discounts are calculated.

Additionally, the state auditor said LSU resolved an issue last year in which it was accused of failing to notify proper authorities of suspected misappropriation of funds. According to the 2024 audit, the issue stemmed from an allegation that an employee was repeatedly absent from work without approved leave. 

In 2026, the state expects LSU's financial future to continue to improve.

"From a financial standpoint, LSU remains stable and well-positioned for growth," the auditors said. "Enrollment-based self-generated revenues are forecasted to grow for fiscal year 2026, and coupled with stable healthcare funding and state appropriations, these factors give the university a solid foundation and great confidence in its near-term financial outlook."

The full audit can be found here.