10 | ANNUAL REPORT
FINANCE
Sol Saad, Finance Committee Chair endowment and an annual $250,000 goal to pay back Board The school continues to designated endowment funds previously used to fund capital be financially strong, improvements. The school’s new auditors will continue to driven by robust provide opportunity for benchmarking and best practices with enrollment growth and their extensive independent school client base. gains in charitable giving and auxiliary programs, The school’s strategic financial plan prioritizes the pay back complemented by of internally borrowed funds. This past year’s strong financial controlled expenditures results allowed the school to pay down $1.5 million in internal against budget. Net debt and establish a $300,000 reserve account to fund future tuition revenue was $23.0 million, up $3.5 million or 17% major building and facility repairs. over the previous year, primarily from enrollment increases of Goals for the upcoming year include continued focus on 13%. Unrestricted contributions and support was $778,000, cost containment to ensure funding increases for faculty an increase of $209,000 or 37% over the previous year and compensation and professional development opportunities auxiliary program profits rose by $256,000 or 88%, further and new school programs, growing our summer programs as contributing to the school’s financial strength. The school profit centers to provide tuition relief, and continuous process recorded a net surplus of $1.3 million or 4.8% of our total improvements to better serve the school community. $26 million operating budget. Investments in school facilities this past year totaled $1.6 million or 4.8% of our net capital Thank you to the many committed members of the School’s assets. School administration is extremely aware of the Finance Committee that generously volunteer their time and burden that tuition places on our families. The school is talents to ensuring the financial sustainability of our School. committed to moderating tuition increases by providing financial aid and controlling school costs as part of our ongoing efforts to avoid pricing the school out of reach for families who are currently members of the school community and for those that would like to join us. The enrollment strength has allowed the school to limit the REVENUES tuition rate increase to 4.75% for Student tuition and fees $25,894,531 the past three years. Our strategic Less: Financial aid grants ($2,875,448) plan includes growth in non-tuition Net tuition and fees $23,019,083 revenue, auxiliary programs and gifts, to mitigate tuition rate increases. Contributions and support $777,643 This past year, the school conducted extensive reviews to hire new financial partners, including a new banking partner (TD Bank), an Endowment Investment Advisor (JP Morgan), and new independent financial auditors (Verdeja & De Armas). The school took advantage of the low interest rate environment to replace a higher interest rate line of credit with more favorable financing terms. Our new investment advisor is managing our long term endowment assets in accordance with the school’s conservative Investment Management Policy. The school’s endowment assets will continue to grow with 20% of new capital campaign gifts earmarked for
Auxiliary programs Student activities Other revenue Net assets release from restrictions TOTAL OPERATING REVENUE AND SUPPORT
EXPENSES
Instructional Student Activities Auxiliary programs Lunch program General and administrative Plant operations Fundraising TOTAL EXPENSES CHANGE IN NET ASSETS FROM OPERATING ACTIVITIES
$1,858,403 $498,441 $80,559 $384,261 $26,618,390 $9,486,942 $1,729,282 $1,312,689 $827,336 $5,349,702 $5,815,422 $844,405 $25,365,778 $1,252,612