Academy Journal Volume 58 - Page 43

  Financial Reports Treasurer’s Report Duane D. Hyatt In past years’ reports I have cautioned that the work of bringing the operating deficits under con- trol was becoming more difficult. Fiscal year 2017 was a demonstration of this warning as we ended the year with an increase of $1.1 million in the op- erating deficit. And while this does provide some reason to be concerned, it should also be noted that we continue to receive a substantial amount of financial support from our donors. People be- lieve in the importance of our mission to provide an education in the light of the three-fold Word. So, concern is warranted, but despair is not. This report gives an overview of the Academy wide financial results and activities. The budget to actual report (Exhibit A on page 44) combines the operating budget/actual results and the capital budget/actual receipts and expenditures. These re- ports are prepared to depict cash flow, providing a picture of the current draws we are making from our endowments to support our mission. Also in- cluded are a few charts displaying high level finan- cial indicators. Finally, our audited financial state- ments are presented. $1.4 million. This represents an increase of $ 1.29 million in the combined deficit when compared to fiscal 2016. The deficit for the College increased by $560,000 to $1.5 million for fiscal 2017. The Secondary Schools saw its deficit increase $574 thousand to $1.6 mil- lion. These bottom line deficits are funded by endowment withdrawals. • Gifts to the adjusted annual fund were $2.7 million but fell short of our adjusted goal of $3.8 million by $1.1 million 1 , quite a signifi- cant amount. The level of unexpected gifts from estates and trusts dropped considerably this year. Recognizing that gifts are difficult to estimate, we have reduced our expecta- tions for the annual fund for fiscal 2018. • We received gifts of more than $4.8 million for other capital or restricted purposes. • The market was up this year with our endow- ment returning 12.2% resulting in a recorded investment gain of $28.9 million. When add- ing endowment withdrawals needed to cover deficits to endowment payout withdrawals, our “real” payout rate for operating funds ITEMS OF SIGNIFICANCE: • We ended the 2017 fiscal year with a deficit of $2.5 million against a budgeted deficit of 1 A $1 million gift was received several years ago and transferred into operations this fiscal year. 43