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