the academy journal
dance with a decision to withdraw 5 percent of its endowment for income distributions . Further , we withdrew $ 5.3 million for current year operating deficit funding , debt service and capital spending . We did invest $ 744,000 from restricted gifts and pledge payments . After taking into account investment income of $ 9.7 million , we realized a net non-operating gain of $ 19.1 million in the market . ( See footnote C to the financial statements .)
The NCIF and collateral pool combined had a positive return in fiscal 2017 of 12.2 % ( net of investment management fees ). Chart 7 shows endowment levels over the last several years along with cumulative amounts withdrawn .
More than 80 % of our investments are highly liquid , an important issue that arose for many endowments in the financial crisis of 2008 / 2009 . 5
• Fixed assets increased by approximately $ 1.0 million ( additions of approx . $ 6.1 million net of depreciation of $ 4.7 million and asset disposals of $ 1.2 million ). The two largest asset additions were construction and other project costs of $ 3.6 million for the new college residence hall and construction costs of $ 1.3 million for the new college turf field . Other asset additions relate to a variety of projects across campus and include structural repairs to Grant Hall , Benade Hall 4 th floor renovations , and Glencairn terrace fountain repairs .
• Accounts payable and accrued expenses decreased by $ 1.3 million from year to year primarily due the completion of the new College residence hall and not having unpaid construction invoices at year-end .
• Despite total current assets decreasing by $ 4.7 million with the decrease in total current liabilities of $ 1.3 million , our current ratio increased from 3.64 to 3.72 year over year . The current ratio is a liquidity ratio that measures our ability to pay our shortterm obligations . A ratio over 1.00 is generally considered satisfactory . A ratio of 3.72 is quite good .
• The year-end balance of our line of credit is $ 39.5 million , down by $ 3.64 million from fiscal 2016 and is reflected as long-term debt in the liabilities section of the Balance Sheet . The Line of Credit is a two-year renewable line and no part of the outstanding line is considered current .
Our debt / equity ratio is 0.20 , a relatively low level of financial leverage . While we no longer have a covenant requirement to calculate a liquidity ratio , this ratio was 1.49 at yearend . This ratio highlights our ability to pay our debt with liquid assets such as cash and unrestricted endowment .
More information about debt is discussed in Footnote E to the financial statements .
• The Academy shares pension and retiree medical obligations with the General Church . $ 9.3 million of investments and cash have been set aside on the Academy ’ s books against liabilities totaling $ 22.8 million – an underfunded situation of about $ 13.5 mil-
5 The footnotes to the Academy and NCIF audit statements include many disclosures about asset valuation principles and potential off balance sheet obligations . These have come about in response to many of the problems that arose in the financial system crisis in 2008 / 2009 and from highly publicized failures of companies such as Enron . These are also useful in understanding our liquidity position .
52