FINANCIAL REPORTS
was approximately 7.5 % on a 3-year market value average . This is an increase from fiscal 2016 .
ACADEMY OPERATIONS AND CAPITAL ITEMS SUMMARY ( Exhibit A )
Operations Section Details
• Student Revenues . Total student revenue had an unfavorable variance against budget of 10.6 % or $ 910 thousand for the fiscal year but was up from a total of $ 6.9 million in 2016 to $ 7.7 million in 2017 , an increase of $ 759 thousand . Individual components of this follow :
• x Combined enrollment in the schools shows an unfavorable variance to the budget of 5.06 % as the final enrollment came in at approximately 27.5 FTE ’ s under budget . Combined dormitory counts also showed an unfavorable variance to budget of 10.4 % as these counts came in at approximately 23.9 FTE ’ s under budget . When we break it down into each of the schools we find that the unfavorable variance for both the school enrollment and dorm enrollment is attributed to the College .
• x Net tuition and fees income ended the year with an unfavorable variance to budget of 17.96 % or approximately $ 712,000 but was up slightly from the prior year by $ 446,000 .
• x Government grants income which funds financial aid was essentially on budget at $ 3.1 million and was up from 2016 by $ 269 thousand .
• Endowment Payout income ended the year with a favorable variance to budget of 5.83 % or $ 451,000 . The endowment payout for the operating budget of $ 8.2 million continues to remain well below the level for fiscal 2009 when the payout income for operations was $ 12.3 milion 2 . This gap of approximately $ 4.1 million is a contributing factor to our operating deficits . Endowment withdrawals to cover deficits and capital spending continues to affect our endowment payout .
• Fund for the Academy / Private Gifts & Grants when adjusted for transfers of $ 1 million 3 totaled $ 2.7 million for fiscal year 2017 , below the $ 4.3 million received in fiscal 2016 by $ 1.6 million . The amount budgeted for the year was $ 3.8 million .
• Transfers & Other Income when adjusted for the $ 1.0 million of transfers noted above was below budget by approximately $ 224 thousand .
• Total Income for the year was $ 1.8 million or 7.5 % below budget .
• Total Expenses were under budget by $ 607,000 or 2.4 %. The total of $ 24.2 million represents an increase of $ 809 thousand in total expenses from fiscal year 2016 .
• This report is designed to present negative cash flow funded by endowment withdrawals . As such , depreciation , a non-cash expense representing the wear and tear on our facilities , has been excluded from the budget
2 The New Church Investment Fund ( NCIF ) cut the payout for fiscal 2010 by 10 % in response to the market downturn of 2008 / 2009 and kept endowment payout flat in fiscal years 2011 , 2012 , 2013 and 2014 not voting to increase the payout until a 3 % increase was approved for fiscal year 2015 and 4 % for fiscal 2016 . For fiscal 2017 the NCIF approved a 3 % payout increase . Beginning with fiscal 2016 , the Academy is taking a payout based upon 5 % of the thirty-six-month rolling average of the Academy ’ s assets as of December 31 of the preceding year .
3 A $ 3.0 million pledge was received in June of 2014 and invested in the NCIF . This gift was to support college operations for three years . During each of the fiscal years 2015 , 2016 and 2017 we transferred $ 1.0 million from the NCIF into the operating budget for the college . The $ 1.0 million transfer was recorded in the Transfers & Other category but represents the fiscal year 2015 , 2016 and 2017 contribution . In fiscal 2016 we also received proceeds from a planned gift totaling just over $ 1 million . $ 936 thousand of this gift was recorded in the Transfers & Other category .
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