10 | 11 State of the Scho ol | financ i a l r e port
FY 2011 revenues ■ Net Tuition & Fees – 62% ■ Endowment Draw – 22% ■ Annual Fund Gifts – 10% ■ Other Income – 3% ■ Summer Programs – 3%
FY 2011 Uses
■ Compensation & Benefits – 52%
■ Facilities –10% F r o m Richa r d S alt z , C hief F inancial
Fiscal year 2011 was a good year for Choate Rosemary Hall. Our operating budget generated a slight surplus, even taking into account a substantial increase in funding physical plant maintenance projects and equipment needs. We met our annual fund goal for the year, and exceeded the School’s capital campaign goal. The School’s operating revenue of $46.4 million for the year was 2 percent higher than the budget, primarily due to above-budget results in Summer Programs. The annual draw from the School’s endowment of $12.6 million is based on a formula. However, in keeping with the plan to rebuild endowed assets to partially offset the impact of the 2008 financial cutbacks, we returned $2.5 million back to the endowment, resulting in a net draw of $10.1 million. All other components of revenue such as tuition, annual fund, and other income or fees, were virtually on budget, totaling $35.1 million for the year and 2.5 percent above last year. Operating expenses, not including depreciation, increased 4.0 percent to $39.2 million, compared with the prior year. Compensation and benefits, which comprise approximately 60 percent of our operating expenses, increased 5.7 percent this past year. Adding capital needs and the principal payment on the School’s debt, total cash needs were $46.2 million.
Office r
■ Academic and Student Programs – 11%
■ Debt Service –6% ■ Administration – 8% ■ Capital Expenditures – 13%
Choate’s endowment results were also favorable for fiscal 2011, with a one-year return of 20.0 percent. The School’s endowment ended the year at $286.5 million, up $49.4 million from its beginning balance, aided by record gifts of $16.7 million and the previously mentioned reduction in the calculated annual draw by $2.5 million. For fiscal 2012, the School is gearing up for several new initiatives which will have long-term positive budget impacts, including 14 additional students for the Kohler Environmental Center and a revision and update to the School’s campus master plan. In the current budget, we were able to increase faculty compensation to correct for inaccuracies and changes in the teaching environment in order to maintain the highest level of faculty talent possible. As the same time, we continue to focus on providing adequate funding to support the student experience at Choate.