Academy Journal Volume 58 - Page 45

  was approximately 7.5% on a 3-year market value average. This is an increase from fiscal 2016. ion 2 . This gap of approximately $4.1 million is a contributing factor to our operating defi- cits. Endowment withdrawals to cover defi- cits and capital spending continues to affect our endowment payout. ACADEMY OPERATIONS AND CAPITAL ITEMS SUMMARY (Exhibit A) • 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. 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: • Transfers & Other Income when adjusted for the $1.0 million of transfers noted above was below budget by approximately $224 thou- sand. • Total Income for the year was $1.8 million or 7.5% below budget. x 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 vari- ance 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 at- tributed to the College. • 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 withdraw- als. As such, depreciation, a non-cash ex- pense representing the wear and tear on our facilities, has been excluded from the budget x 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. 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. x 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 mil- 3 45 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 Ʌ͙ȁ݅́ɕɑ)ѡQɅ͙̀=ѡȁѕ䁉Ёɕɕ͕)ѡ͍啅Ȁ԰؁܁ɥѥ%)͍؁ݔͼɕٕɽ́ɽ)ЁѽхЁٕȀā؁ѡͅ)ѡ́Ё݅́ɕɑѡQɅ͙̀=ѡ)ѕ