Financial Statements
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with standards established by the Financial Accounting Standards Board (FASB) for external financial reporting by not-for-profit organizations.
The accompanying financial statements have been prepared on the
accrual basis of accounting in accordance with standards established by
the Financial Accounting Standards Board (FASB) for external financial
reporting by not-for-profit organizations.FINANCIAL STATEMENT HIGHLIGHTSBalance SheetThe
balance sheet presents the College's financial position as of August
31, 2003. The College's largest financial asset is its investment
portfolio, representing approximately 51 percent of the College's total
assets, with a fair market value of $164 million as of August 31, 2003.
The investment portfolio includes $146.2 million relating to the
College's endowment, which represents contributions to the College
subject to donor-imposed restrictions that such resources be maintained
permanently by the College, but permit the College to expend part or
all of the income derived therefrom. The endowment is managed to
achieve a prudent long-term total return (dividend and interest income
and investment gains). The Trustees of the College have adopted a
policy designed to preserve the value of the endowment portfolio in
real terms (after inflation) and provide a predictable flow of income
to support operations. In accordance with the policy, $8.4 million of
investment return on the endowment portfolio was used to support
operations in fiscal year 2003. The College's second largest and
oldest asset is its physical plant, consisting of land, buildings,
furniture and fixtures, and equipment. During fiscal year 2003, the
College invested $27.6 million in its physical plant to fund
construction of a new student residence hall and various renovation
projects. As of August 31, 2003, the net book value of plant assets was
approximately $73 million, representing approximately 23 percent of the
College's total assets.The College's liabilities of $139.6
million are substantially less than its assets. As of August 31, 2003,
long-term debt of $83.6 million represented the College's most
significant liability. During fiscal year 2003, the College assumed
additional indebtedness of $41.5 million to finance the construction of
a new student residence hall.In accordance with FASB standards,
the net assets of the College are classified as either unrestricted,
temporarily restricted or permanently restricted. Unrestricted net
assets are not subject to donor-imposed restrictions. At August 31,
2003, the College's unrestricted net assets totaled approximately $120
million. Of this amount, approximately $80 million represented
endowment appreciation and funds designated for long-term investment
(quasi-endowment funds) by the College's Trustees. Temporarily
restricted net assets are subject to donor-imposed restrictions that
will be met either by actions of the College or the passage of time.
Permanently restricted net assets are subject to donor-imposed
restrictions that stipulate that they be maintained permanently by the
College, but permit the College to expend part or all of the income
derived therefrom. The College's permanently restricted net assets
consist of endowment principal cash gifts and pledges. STATEMENT OF CHANGES IN NET ASSETSThe
statement of changes in net assets presents the financial results of
the College and distinguishes between operating and non-operating
activities. Non-operating activities principally include investment
return in excess of the expendable amount determined by the College's
endowment spending policy; unrestricted bequests; and capital campaign
contributions and related expenses.The College experienced a net
decrease in unrestricted net assets from operations in its financial
statements. This decrease in net assets from operations was primarily
attributed to expenditure growth, primarily in the areas of fringe
benefit costs and property insurance premiums, with no corresponding
growth in revenues to offset. The College's net assets decreased by
approximately $1 million overall. Unrestricted operating
revenues totaled approximately $114 million. The College's principal
sources of unrestricted operating revenues were student tuition and
fees, net of student aid, representing 51 percent of operating
revenues, and grants and contracts for research and training programs,
representing 22 percent of operating revenues. Investment return,
auxiliary activities, government appropriations and other sources
comprised the remaining 27 percent of operating revenues. Operating
expenses totaled $117.9 million; program services expenses, which
consist of all expenses other than institutional support, represented
87 percent of total expenses, at $102.3 million.With the recent
completion of its $140 million capital campaign, a strategic planning
process and the construction of a new student residence hall, the
College embraces the future with much hope and excitement for what is
to come.
Published Saturday, Apr. 2, 2005