the academy journal
and actual results. Depreciation of $4.8 mil-
lion is included with operating expenses in
our audited financials for fiscal 2017.
rent year construction costs of the college
dormitory.
• Total Debt Service of $4.2 million was over
budget by $114 thousand. Two components
make up this result:
Capital Items Details
In summary, total income and other receipts
are less than budget by $5.8 million and expen-
ditures are less than budget by $5.0 million. The
most significant factor contributing to both vari-
ances was including the total construction costs
and gift and pledge receipts for the new college
dormitory in the budget when in fact a sizable por-
tion of the construction occurred in the second
half of fiscal 2016. The timing for the preparation
of the capital budget assumed more costs would
occur in fiscal 2017.
The year-end results are a deficit of $2.96 mil-
lion for the year.
Since we covered the costs of each project with
either a restricted gift, a grant or from operations,
the deficit in the capital budget can be attributed
exclusively to debt service offset by endowment
payout of $1.16 million as well as gifts received for
debt repayment or capital campaign pledge pay-
ments of $42,000 less $24,000 in expenses related
to miscellaneous projects.
• Capital Campaign and Other Gifts (cash re-
ceipts only) totaled $1.9 million and include
gifts for the new college turf field ($1.4 mil-
lion) and gifts to support college athletics
($269 thousand). In addition to $42,000 of
new gifts, receipts from capital campaign
pledges of $24,000 are to be applied to debt
reduction.
x x Interest and fees on our debt totaled
$539,000 coming in at $89,000 over
budget. Our debt has a variable interest
rate and began the year at 1.05% but in-
creased to 1.6125% by year end, account-
ing for the negative variance.
x x We made principal payments of $3.64
million exceeding the budget for fiscal
2017 by $25 thousand. We made two
planned withdraws of $3.6 million from
our endowment to pay down the debt.
In addition, we were fortunate to receive
gifts earmarked for debt reduction in the
amount of $25,000.
• Capital Expenditures exceeded budget by
$5.2 million. As stated above, the deficit was
primarily due to including the full cost of the
new college dormitory in the current year’s
budget when in fact only $3.6 million of the
costs occurred in the current year. Examples
of additional expenditures include:
x x $1.34 million was spent on the new col-
lege turf field. The cost of this project
was fully covered by a very generous gift!
x x $293,000 was spent on Glenn Hall re-
pairs.
x x Benade Hall floor renovations cost
$96,000 and was funded from a grant.
• Endowment Payout was $496,000 less than
budget. The variance is primarily due to
withdrawals for debt payments.
x x Glencairn spent $192,000 on renovations
to the terrace fountain.
The bottom line for the Academy Operations
and Capital Items Summaries is $5.5 million of
expenditures in excess of receipts. This is an in-
crease of $2.25 million from the $3.2 million ex-
penditures in excess of receipts in fiscal 2016. We
have been tracking the progress in reducing the
combined deficit from fiscal 2011’s $17.4 million
combined deficit and unfortunately the progress
has been reduced to $11.9 million. It is still a sig-
nificant improvement from fiscal 2011 but we must
remember the combined deficits are funded by en-
dowment withdrawals coming primarily from the
endowments allocated to the schools and debt. We
need to move back in the right direction.
• Sale, Transfers & Other exceeded budget by
$3.5 million:
x x $4.0 million was transferred from the
operating budgets of the college and the
secondary schools, the Academy Quasi-
Endowment Fund and various restricted
funds to fund various projects. Gifts
for capital projects that do not get used
in the year received are moved to these
restricted funds until the project is com-
pleted at which time the funds are trans-
ferred into the capital budget.
• More specifically, a sizeable portion of the
transfer was to fund the $3.6 million in cur-
46