the academy journal
ers than projected – 218 vs. 236.
• Capital Campaign and other gift receipts
(shown in the Capital Section of Exhibit A)
were also stronger than originally expected
by more than $200 thousand.
• Endowment Payout was higher than budget
by $188 thousand as a result of reductions
in the deficit. A lower deficit leads to lower
withdrawals from our endowment which
results in more payout generated for operations. However payout for the operating budget is now approximately $4.0 million less
than Fiscal 2009, contributing significantly
to our deficit spending. Why? The New
Church Investment Fund cut its payout for
Fiscal 2010 by 10% in response to the market
downturn of 2008/2009 and kept payout flat
in Fiscal years 2011, 2012, 2013and into 2014.
Endowment withdrawals to cover deficits
and capital spending also reduce payout.
• The stock market was up this year and our
endowment return was a positive 9.6%.
Because we cover deficits with endowment
withdrawals, our payout rate on operating
funds was approximately 8.5% on a 3-year
market value average, 9.0% of yearend values.
We continue to make strides in deficit reduction which will allow us to return these rates
to more sustainable levels.
• A comprehensive review of our employee
benefits has resulted in several changes
which has provided significant savings to the
institution and will continue to help keep
future costs manageable. See page 34 for further discussion.
• Fund for the Academy/ Private Gifts & Grants
totaled $3.0 million for fiscal 2013 and was
$2.3 million over the amount received in
fiscal 2012. It represents an 11.2% favorable
variance to the budget of $2.7 million. I
believe this significant increase in operating
gifts from our donors is a reflection of their
support in our attempts to bring our financial position under control through reduced
expenditures and increases in revenues. We
need our donors to continue their financial
support as we work through these difficult
times.
• Beginning July 1, 2013 we began reporting
on a new internal division of the endowment
approved by the Board in February 2012. The
purpose is to assist the leadership of each of
the Academy schools in planning and decision making. This division allocates endowment to cover our debt servicing needs and
also includes assets held for post-retirement
benefits while a portion of the endowment is
assigned to each of the schools.
• Transfers & Other Income were greater than
budget by $228 thousand due in large part
to transfers from funded reserves for various
expenses and transfers from restricted gifts
received for operations in a prior year.
ACADEMY OPERATIONS AND CAPITAL
ITEMS SUMMARY (Exhibit A)
Operations Section Details
• Salaries & Benefits were under budget by
$471 thousand due in large part to college
faculty retirements and filling certain positions with adjuncts, reductions in library
staff, changes in health clinic and admissions
staffing and allocations of staff to research
largely funded by external grants. Severance
payments made in 2013 did reduce some of
the savings from staff reductions.
• Student Revenues. Total enrollment was lower than projected – 436 vs. 484.1 As a result
net Tuition & Fees was lower than budget by
$699 thousand though we did see improvement in the student discount rate. Government Grants in support of student tuition
were higher than budget by $309 thousand.
Net Room & Board was greater than budget
by $143 thousand despite having less board-
1
• Facilities Costs were under budget by $734
thousand due to maintenance and custodial
staff layoffs, lower energy costs as a result of a
mild winter, and renegotiated contracts. The
installation of a new boiler in Glencairn and
For a 10-year enrollment history, see Chart 1 at Exhibit B
32