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