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Financial Statement Highlights

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.
BALANCE SHEET
 
The balance sheet presents the College’s financial position as of August 31, 2009. The College’s largest financial asset is its investment portfolio, representing approximately 56% of the College’s total assets, with a fair market value of $203 million as of August 31, 2009. The investment portfolio includes $181 million relating to the College’s endowment, which represent 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, $13 million of investment return on the endowment portfolio was used to support operations in fiscal year 2009.
 
The College’s second largest and oldest asset is its physical plant, consisting of land, buildings, furniture and fixtures, and equipment. As of August 31, 2009, the net book value of plant assets was approximately $123 million, representing approximately 34% of the College’s total assets.
 
The College’s liabilities of $198 million are substantially less than its assets. As of August 31, 2009, long-term debt represented the College’s most significant liability, at $88 million.
 
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, 2009, the College’s unrestricted net assets totaled approximately $82 million. 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, net of amounts appropriated as determined by the College’s endowment spending policy; changes in non-operating pension and postretirement liabilities; and the net change in the value of derivative instruments.
 
Unrestricted operating revenues totaled approximately $161 million. The College’s principal sources of unrestricted operating revenues were student tuition and fees, net of student aid, representing 52% of operating revenues, and grants and contracts for research and training programs, representing 23% of operating revenues. Investment return, auxiliary activities, government appropriations, and other sources comprise the remaining 25% of operating revenues. Operating expenses totaled $168 million.
 
BALANCE SHEET August 31, 2009
 
ASSETS
 
Cash $ 11,049,332
 
Student accounts and other receivables, net 4,676,846
 
Grants and contracts receivable 3,564,441
 
Inventories and other assets 3,951,787
 
Contributions receivable, net 5,739,326
 
Funds held by bond trustees and escrow agent 8,173,998
 
Investments 203,019,088
 
Student loans receivable, net 2,840,562
 
Plant assets, net 122,724,537
 
TOTAL ASSETS $ 365,739,917
 
LIABILITIES AND NET ASSETS
 
LIABILITIES
 
Accounts payable and accrued expenses $ 21,160,613
 
Deferred revenues 24,010,832
 
Long-term debt 87,734,517
 
Accrued pension and other benefit obligations 52,400,950
 
Other Liabilities 10,961,076
 
U.S. Government grants refundable 2,369,096
 
TOTAL LIABILITIES 198,637,084
 
NET ASSETS
 
Unrestricted net assets
 
Endowment and Other 134,377,614
 
Pension and Postretirement Obligation (52,400,950)
 
Total Unrestricted net assets 81,976,664
 
Temporarily restricted 9,579,056
 
Permanently restricted 75,547,113
 
TOTAL NET ASSETS 167,102,833
 
TOTAL LIABILITIES AND NET ASSETS $ 365,739,917
 
STATEMENT OF CHANGES IN NET ASSETS Fiscal Year ended August 31, 2009
 
TEMPORARILY PERMANENTLY
 
UNRESTRICTED RESTRICTED RESTRICTED TOTAL OPERATING REVENUES
 
Student tuition and fees, net of student aid $ 84,587,891 —     —     84,587,891
 
Government appropriations 572,829 —     —     572,829
 
Grants and contracts 36,851,847 —     —     36,851,847
 
Contributions 2,950,465 —     —     2,950,465
 
Investment return used in operations 13,157,836 —     —     13,157,836
 
Sales and services of auxiliary enterprises 18,722,492 —     —     18,722,492
 
Other sources 2,141,199 —     —     2,141,199
 
Net assets released from restrictions 2,437,799 —     —     2,437,799
 
TOTAL OPERATING REVENUES 161,422,358 —     —     161,422,358
 
OPERATING EXPENSES
 
Instruction 58,975,017 —     —     58,975,017
 
Research, training and public service 38,789,843 —     —     38,789,843
 
Academic support 13,624,354 —     —     13,624,354
 
Student services 9,119,639 —     —     9,119,639
 
Auxiliary enterprises 21,451,921 —     —     21,451,921
 
Institutional support 25,786,049 —     —     25,786,049
 
TOTAL OPERATING EXPENSES 167,746,823 —     —     167,746,823
 
DECREASE IN NET ASSETS FROM OPERATIONS (6,324,465) —     —     (6,324,465)
 
NON-OPERATING ACTIVITES
 
Contributions —     1,486,254 1,193,115 2,679,369
 
Investment return, net of amounts appropriated (31,607,967) —     —     (31,607,967)
 
Net change in fair value of derivative instruments (3,787,308) —   — (3,787,308)
 
Investment return on funds held by bond trustees 37,284 —     —     37,284
 
Change in value of split-interest agreements (12,954) (77,763) (260,822) (351,539)
 
Pension and postretirement changes other than net periodic benefit costs (11,125,593) —     —     (11,125,593)
 
Redesignation of net assets (43,045) (131,433) 174,478 —    
 
Net assets released from restrictions 2,029,903 (4,467,702) —     (2,437,799)
 
INCREASE IN NET ASSETS $ (50,834,145) (3,190,644) 1,106,771 (52,918,018)
 
NET ASSETS AT BEGINNING OF YEAR 132,810,809 12,769,700 74,440,342 220,020,851
 
NET ASSETS AT END OF YEAR $ 81,976,664 9,579,056 75,547,113 167,102,833
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