2011 TC Pressroom
Teachers College, Columbia University
Teachers College Columbia University

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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.

FINANCIAL STATEMENT HIGHLIGHTS

Balance Sheet

The 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 ASSETS

The 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.

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