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American International College President’s Report 2014

POTENTIAL

the energy stored in a system of forcefully interacting physical entities

ENERGY


the

physics of

OUR Success (Effort + Time)

from the President

kinetic ENERGY Financials GROWTH rate

Strategic Goals ELASTIC force

break THROUGH

Board of Trustees


Dear Alumni and Supporters, It gives me great pleasure to share with you the news that last year was the best financial year in the history of American International College. It was also, strangely, a quiet year. I attribute this seeming contradiction to a number of factors, but chief among them is a culture of changed expectations at AIC. It was not so long ago that exceeding our goals would justifiably have been cause for celebration. We were a different institution then, however, and pride in even small victories necessarily fueled our forward progress. We are still proud of the good work we have done, but we are no longer relieved by our good fortune. Instead, we look to the future clearly and confidently as we begin to envision the promise inherent in our potential. Building on the cumulative gains of previous years’ financial and strategic efforts, AIC has intentionally but quietly positioned itself for significant growth in the future. In a difficult time for the industry of higher education, and in a fiercely competitive regional marketplace, AIC is thriving. This report seeks to share with you the physics of our recent success and to document how coordinated efforts across multiple offices create movements as powerful as they are intricate. We know that good things happen when devoted people work hard for a long time. I remain perpetually aware of how fortunate I am to lead a college whose ranks are filled by faculty and staff who are superlatively talented and extremely committed; to be surrounded by students dead set on making the most of the opportunities we provide them; and to call home a city and a region whose needs and vitality demand the very best from us. Good things are happening at AIC. Get used to it. Best regards,

Vince Maniaci President

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$49.9 million in revenue

$5.7 million operating surplus

$12.3 million operating surplus over the last 3 years

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break through American International College has proven it can navigate turbulent financial times—notably through a recent recession and in the midst of a fierce, ongoing battle for students who belong to an increasingly hardto-target demographic. This year, however, witnessed a tremendous surge forward: 2013 was the best financial year in the College’s history.

But what does that mean, exactly? AIC has made steady progress on key administrative and strategic goals for several years running (for the full list of strategic goals, see page 10). Fiscal 2013 marked an exciting period of confluence of previous years’ savvy financial strategy and strategic development. To wit, AIC: • Increased cash to $5.7 million as a result of exceeding budget performance and collections • Retired $4.2 million of debt • Improved liquidity and maintained a robust, unused line of credit • Reinvested $5.3 million in facilities, personnel, and systems in 2014 It is this substantial reinvestment in core areas of operation that provides the scaffolding that increased demand for AIC will necessitate. Increased demand, of course, will result from new academic programming, especially at the graduate level.

The interplay of these forces—building new programs, recruiting new students to fill these programs, and making sure we have the systems in place to excellently serve new students—requires precise forecasting, campus constituencies that can meet the forecasted goals, and sustained foresight and creative problem solving. It also requires knowing when to bet big on solutions that will work. In addition to recent high-visibility projects on campus (the renovation to Breck Hall, the new iPad Lab, Adbow Field’s new scoreboard, and the new Campus Center Auditorium), AIC’s acquisition of Jenzabar is the jewel in a quiet year’s crown. Jenzabar is a suite of digital services that manages the College’s vast enrollment and record-keeping operations. As implementation progresses, it will make possible a host of operations (course registration, grading, bill paying, and online instruction, for example) that students, and their parents, expect. What is so invigorating about these accomplishments is that the people who engineered them will now get the chance to do even more with better resources at their disposal. As Executive Vice President for Administration Mark Berman puts it, “We’re doubling down on AIC—on our trustees, our leaders, our faculty and staff, and our students. We have come so far together, and now we are in a position to explore uncharted territory.” 3


[(Vpresent-Vpast)/Vpast] * 100

growth rate Dean of Admissions Janelle Holmboe arrived at American International College in 2011. In her brief tenure she’s revamped the Office of Admissions and helped usher AIC into a new age of pinpoint, data-driven student recruitment. With tools like the Hobsons customer relationship management system now at her disposal, and the fiscal capacity to hire consultants from some of the most well-respected firms in higher education recruitment, Holmboe and her team have kept AIC 4

In a year when 75 percent of other four-year private colleges experienced a decline in enrollment (primarily due to demographic fluctuations), AIC’s admissions team beat their goals.


Growth

atop a market that has been frighteningly inhospitable. In a year when 75 percent of other four-year private colleges experienced a decline in enrollment (primarily due to demographic fluctuations), AIC’s admissions team beat their goals. Growth will, understandably, always be measured by the real number of students that grow and learn in AIC’s classrooms, but we’ve also begun to think more broadly about what growth can and should mean to us. For example, 2013 saw an increase of 6 percent in our six-year graduation rate. We’ve invested in personnel in key academic- and student-support areas. Our Center for Academic Success staff directly impact our retention rates; our Office of Student Affairs team engages students outside the classroom, enriching their AIC experiences through service opportunities and creative endeavors that help them grow the “soft skills” that will play a huge role in their post-AIC fortunes; and our athletics

programs continue to be a source of pride for everyone associated with the College as our coaches and student-athletes generate immodest amounts of success and goodwill for the AIC brand. Indeed the market is difficult, but as study after study has shown, the return on investment of a college degree is steep. According to a recent report by the Economic Policy Institute, Americans who had earned a four-year college degree made, on average, 98 percent more per hour than people who did not have college degrees. The same study also found that the “net cost” of attending college was negative $500,000, meaning, essentially, that getting a college degree literally pays off (to the tune of half a million dollars). As this message continues to get out—as our potential students respond to the urgency and veracity of this reality—AIC will be ready and waiting not just to recruit them, but to help them grow alongside us. 5


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elastic FORCE

k=F/X elasticity=force/distance Responsiveness—to our students, our region, and the economy— requires flexibility and adaptation. We must stretch to fit the shape the future takes. It’s a mandate as noble as it is complex, and to meet it head on, AIC has metamorphosed into an institution ready to respond to an evolving landscape. In 2013, Provost Todd G. Fritch, PhD, continued to be the catalyst for significant developments across the College. As the chief academic officer and leader of the College’s admissions and marketing departments (among many other responsibilities), Fritch was uniquely positioned to execute a comprehensive vision for making AIC as future-ready as possible. And it turns out that the future arrives this fall, when an astounding fourteen new degree and certificate programs will see the light of day. From an MBA in Resort and Casino Management, to a bachelor’s in Visual and Digital Arts, to a certificate in Leadership or General Psychology, or any one of several new programs, these offerings will attract students who need credentials that qualify them for career opportunities locally and nationally. Bringing these programs to the market was no easy task. Each one was subject to rigorous internal review by a number of College constituencies and had to demonstrate its real-world viability. A key addition to the AIC team, Dr. Dawn Sherman, dean of academic program development, was instrumental in developing the standards for new program development and implementing the review process. It was an extraordinary amount of work, but it will see benefits far beyond the rollout this fall. Fritch (who is departing AIC for a position in the private sector) says the effort will pay dividends for years to come. “Planning is hard,” Fritch acknowledges. “Building new systems is hard. Getting people to buy in to a new way of doing things is hard. But once systems are in place, the rewards are compounded. The systems for building and reviewing new programs, for example, required input and time and sincere debate and discussion from a lot of people over a period of years. As we continue to develop new programs, we will know exactly the steps to follow, and we will be able to beat our competitors to market. This work pays off now, sure, but there are even greater benefits down the road for AIC, for Springfield, and for all of New England.” 7


Major: International Studies Minor: Political Science Advisor: Professor Thomas Maulucci Title: Student Body President After AIC: Teach for America

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kinetic Energy Hi there. My name is Desantila Gjata, but everyone calls me Tilia. I’m from Derby, Connecticut and I graduated from American International College in May with a degree in International Studies. I’d like to tell you a little about myself, specifically where I’ve come from, where I’m going, and how American International College helped make it all possible. When I showed up on the AIC campus in the fall of 2010, I was basically an introvert. Despite my passion for leadership, I lacked the confidence to take charge. As I immersed myself in my courses and became accustomed to living away from home, however, I found myself naturally developing as a leader and participating in multiple extracurricular activities. The Office of Admissions hired me as a Student Ambassador, and in that position I learned so many skills—how to make prospective students and their parents feel at home, how to speak in public, how to think on the fly—that developed my ability to confidently lead. I even took leadershiptraining workshops. These experiences provided me with the confidence to develop a successful Model United Nations organization on campus, as well as to run for and win the elected position of student body president. During my junior year, my academic advisor provided me with guidance in applying for what would be my first professional experience. As an intern for the United States Department of State at the United States Consulate in Belfast, Northern Ireland, I was able to further develop beyond my comfort zone, as I was faced with the challenge of living in a foreign country. In expanding my leadership skills through the practice of public relations and US foreign diplomacy, I concluded that with enough hard work, practice, and passion, anyone can become an effective leader. Ultimately, I have realized that building confidence is a process, and it occurs through the culmination of various professional experiences and the personal will to evolve. As I look forward to beginning Teach for America this June, I am overcome with excitement and sentiment at the realization that I have truly transformed here at AIC. It took a while for me to see what my classmates and professors did—to help me see that my potential could become purpose. 9


Strategic Goals Goal 1: Financial Achieve operating equilibrium窶田ash surplus of 4% on current operations with growth in revenue exceeding growth in expenses (after capital expenditures and deferred maintenance). Achieve continued growth in the College endowment via systematic fund-raising and development activities and sound investment management policies. Prioritize programmatic and capital expenditures. Goal 2: Program Development Identify programs and production functions that achieve a balance of attractiveness, affordability, retention, and quality consistent with the mission of the College to ensure that graduating students have a solid command of defined skills and core competencies. Manage performance through a rigorous process of outcomes assessment, using evidence to inform resource allocation and effect continuous improvement.

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Goal 3: Student Profile and Visibility Maximize the AIC value proposition of cost, quality, and convenience by creating a strong brand identity program targeting a diverse population of motivated students who are academically prepared for either undergraduate or graduate studies and who are willing and able to pay a reasonable share of program costs. Differentiate between the needs of the undergraduate and graduate populations and such other key market segments as transfers, adult learners, professionals, and international students. Goal 4: Infrastructure Improve campus environment and infrastructure, including technology. Review, revise, and reprioritize Campus Master Plan to ensure that new projects and improvements are consistent with our Strategic Plan and long-term institutional needs.


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Financials 2013 Revenue 1%

4%

5%

Expense

Auxiliary Services

1%

Other

Other Supporting Services

Gifts & Grants

8%

Increase in Net Services from Operations

19%

Residence & Dining

Campus Services & Plant

83%

0

7%

32%

Scholarship & Awards

7%

Tuition & Fees

25%

Other Program Expenses

%

Non-Operating Activities

Academic Affairs

9%

Student Services

Ethnicity

Financial Aid

Undergraduate Students

1%

Undergraduate Students

2%

Nonresident Asian Alien

4%

Two or more Races

Filed a FAFSA

15%

Race & Ethnicity Unknown

44

%

0%

American Indian or Alaska Native

92.1

%

White

AIC Grants or Scholarships

25%

Black or African American

% 8 Hispanic or Latino

1%

Native Hawaiian or Pacific Islander

51.0%

Received a Pell Grant 12

93.9%

84.7%

Received Federal Student Loans


Board of Trustees CHAIR

Oversight and Advocacy

Peter J. Bittel, EdD, Hon ’10 Chief Executive Officer, The Futures HealthCore, LLC

Beyond the traditional responsibilities of fiduciary and policy oversight, AIC’s trustees play a significant role as connectors to the larger community. Beyond their own financial support, trustees expand the school’s reach through introductions to new supporters and unforeseen opportunities. AIC is indeed fortunate to have such a mission-driven and engaged board.

VICE CHAIR Frank Colaccino ’73, Hon ’12 President, The Colvest Group, Ltd. TREASURER A. Craig Brown, Esq., Hon ’13 Doherty, Wallace, Pillsbury & Murphy P.C.

Michael D. Ravosa, CFP, PMP ’98 Vice President - Wealth Management, UBS Financial

TRUSTEES:

Timothy J. Regan II ’74 Senior Vice President, Global Government Affairs, Corning Incorporated

Ronald J. Abdow, Hon ’05 President, Abdow Corporation Spencer A. Barnard Jr., Hon ’09 President, K-12 Teachers Alliance James A. Calhoun ’68, Hon ’00 Retired Head Basketball Coach, University of Connecticut Rebecca B. Caplice President & CEO, Greenfield Savings Bank Margaret Clancy-Packenham ’79 Executive Vice President and Co-founder, Aptima, Inc. Stephen A. Davis, Hon ’11 Ventry Industries Daniel E. Della-Giustina, PhD, BA ’52, MA ’55, Hon ’04 Retired Professor, College of Engineering & Mineral Resources West Virginia University

K. Kevin Saremi ’83 Chief Executive Officer, Consolidated Health Plans Matthew C. Schimenti ’87 President, Schimenti Construction David C. Southworth President and CEO, Southworth Company Kelley L. Tucky Vice President-Community Relations & Public Affairs/Eastern Region MGM Resorts International Daniel Vetras ’81 President and CEO, Kontiki Peter J. Vogian Retired Senior Vice President, MassMutual

Shawn M. Harrington ’76 Vice President for Finance and Administration University of Saint Joseph

Daniel J. Warwick ’81 MEd, ’86 CAGS Superintendent of Schools, Springfield Public Schools, Springfield MA

Gale A. Kirkwood Community Volunteer

E. David Wilson, Hon ’08 Retired President, The Hasbro Games Group

J. Allen Kosowsky, CPA ’69 President, J. Allen Kosowsky, CPA, PC

TRUSTEES EMERITI:

Mark G. Mastroianni, Esq. ’86 Hampden District Attorney Kimberly P. May, MD, FACP, FACR Physician, Veterans Administration, Northampton VA Medical Center and Pittsfield Outpatient Clinic Edward J. Noonan ’74 Chairman, Noonan Energy Corporation

Crawford Lincoln, Hon ’04 Retired President, Old Sturbridge Village Lewis E. Randall, PhD Retired Director of Howell Cheney Regional Vocational Technical School


American International College Office of the President 1000 State Street | Springfield, MA 01109 | 800.242.3142 www.aic.edu

President's Report 2014  
President's Report 2014  
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