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.
BALANCE SHEET
The balance sheet presents the College’s financial position as of August 31, 2016. The College’s largest financial asset is its investment portfolio, representing 56% of the College’s total assets, with a fair market value of $293.7 million as of August 31, 2016. The investment portfolio includes $275.3 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 or designated to the endowment by the Board of Trustees. 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, $12.6 million of investment return on the endowment portfolio was used to support operations in fiscal year 2016.
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, 2016, the net book value of plant assets was approximately $158.5 million, representing 30% of the College’s total assets. The College’s liabilities of $206.8 million are substantially less than its assets. As of August 31, 2016, long-term debt represented the College’s most significant liability at $108.4 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, 2016, the College’s unrestricted net assets totaled $101.3 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 and appreciation on donor endowment funds. 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 post-retirement liabilities, and campaign contributions. Unrestricted operating revenues totaled $208 million. The College’s principal sources of unrestricted operating revenues were student tuition and fees, net of student aid, representing 54% of operating revenues, and grants and contracts for research and training programs, representing 24% of operating revenues. Investment return, auxiliary activities, contributions, other sources and net assets released from restriction comprise the remaining 22% of operating revenues. Operating expenses totaled $205.6 million.
| BALANCE SHEET August 31, 2016 | |
|---|---|
| ASSETS | |
| Cash | 37,410,798 |
| Student accounts and other receivables, net | 5,667,090 |
| Grants and contracts receivable | 9,618,118 |
| Inventories and other assets | 1,558,336 |
| Contributions receivable, net | 13,265,934 |
| Funds held by bond trustees and escrow agent | 1,294,879 |
| Investments | 293,689,770 |
| Student loans receivable, net | 2,949,150 |
| Plant assets, net | 158,549,370 |
| TOTAL ASSETS | 524,003,445 |
| LIABILITIES AND NET ASSETS | |
| LIABILITIES | |
| Accounts payable and accrued expenses | 23,194,045 |
| Deferred revenues | 20,352,793 |
| Long-term debt | 108,359,392 |
| Accrued pension and other benefit obligations | 49,017,048 |
| Other Liabilities | 3,099,309 |
| U.S. Government grants refundable | 2,766,554 |
| TOTAL LIABILITIES | 206,789,141 |
| NET ASSETS | |
| Unrestricted net assets | 101,334,346 |
| Temporarily restricted | 111,311,114 |
| Permanently restricted | 104,568,844 |
| TOTAL NET ASSETS | 317,214,304 |
| TOTAL LIABILITIES AND NET | 524,003,445 |
|
STATEMENT OF CHANGES IN NET ASSETS | ||||
|---|---|---|---|---|
|
OPERATING REVENUES |
Unrestricted | Temporarily restricted |
Permanently restricted |
Total |
| Student tuition and fees, net of student aid | 113,525,951 | — | — | 113,525,951 |
| Grants and contracts | 50,837,935 | — | — | 50,837,935 |
| Contributions | 2,777,694 | — | — | 2,777,694 |
| Endowment return appropriated and other investment income | 12,869,700 | — | — | 12,869,700 |
| Sales and services of auxiliary enterprises | 22,762,526 | — | — | 22,762,526 |
| Other sources | 2,944,129 | — | — | 2,944,129 |
| Net assets released from restrictions | 2,255,086 | (2,255,086) | — | — |
| TOTAL OPERATING REVENUES | 207,973,021 | (2,255,086) | — | 205,717,935 |
| OPERATING EXPENSES | ||||
| Instruction | 72,161,362 | — | — | 72,161,362 |
| Research, training and public service | 45,403,063 | — | — | 45,403,063 |
| Academic support | 17,545,827 | — | — | 17,545,827 |
| Student services | 9,794,344 | — | — | 9,794,344 |
| Auxiliary enterprises | 23,309,306 | — | — | 23,309,306 |
| Institutional support | 37,446,246 | — | — | 37,446,246 |
| TOTAL OPERATING EXPENSES | 205,660,148 | — | — | 205,660,148 |
| INCREASE IN NET ASSETS FROM OPERATIONS | 2,312,873 | (2,255,086) | — | 57,787 |
| NON-OPERATING ACTIVITES | ||||
| Contributions | 1,215,140 | 8,791,717 | 12,807,668 | 22,814,525 |
| Investment return, net of amounts appropriated | (4,019,572) | (6,278,022) | — | (10,297,594) |
| Pension and post-retirement changes other than net periodic benefit costs | (7,658,639) | — | — | (7,658,639) |
| Other, net | (81,620) | (136,708) | 178,077 | (40,251) |
| INCREASE (DECREASE) IN NET ASSETS | (8,231,818) | 121,901 | 12,985,745 | 4,875,828 |
| NET ASSETS AT BEGINNING OF YEAR | 109,566,164 | 111,189,213 | 91,583,099 | 312,338,476 |
| NET ASSETS AT END OF YEAR | 101,334,346 | 111,311,114 | 104,568,844 | 317,214,304 |