Finance Report

For most of my seven-year tenure on the board, I have had the privilege of serving on the Finance Committee alongside CFO Gwen Fonarow and her outstanding team. I am pleased to report that Rowland Hall’s financial foundation is sound. Conservative budgeting practices, a growing endowment, and increasing enrollment have led to a strong balance sheet. Furthermore, Rowland Hall’s auditing firm, Tanner, has consistently given our financial statements an unqualified (clean) audit opinion with no management letter comments, inspiring confidence in our financial fundamentals.

In summer 2021, members of the board's Finance Committee participated in a National Association of Independent Schools tuition workshop to analyze economic factors influencing enrollment, tuition, and financial stability. We reviewed demographic and macro, regional, and local trends; conducted community research; and benchmarked ourselves against national peer schools. Our findings affirmed Rowland Hall’s financial strength and extraordinary opportunity to build upon our national recognition, and kicked off two parallel and informative streams of work: developing new strategic priorities and determining financing options to build out the Steiner Campus.

In support of developing strategic priorities, a Strategic Priorities Committee met over eight months to create what ultimately became our new vision: Developing People the World Needs. From there, we developed four pillars to achieve this vision—our strategic priorities. I believe strategy and vision need to be rooted in financial reality, and it was through this lens the committee pushed to new heights. The 2022–2023 operating budget already reflects the strategic priorities by allocating additional resources to significantly expand the school’s computer science program.

In support of determining financing to build out the Steiner Campus, members of the board's Finance Committee conducted an extensive analysis with the assistance of Wye River, a nationally recognized financial advisory firm, to determine the school’s debt capacity as we evaluate financing options. The yearlong analysis illustrated that due to solid cash reserves, strong enrollment, and prudent operational management, Rowland Hall is in a position to consider multiple options, including debt, to accelerate the building of the Steiner Campus.

These are truly transformational times at Rowland Hall. Built on a solid foundation of wise financial management, an enduring legacy, forward-thinking leadership, and an exceptional culture, Rowland Hall is well situated to achieve and exceed our vision. I am honored to serve during such an important time in the school’s history.

Sincerely,

Sarah Lehman, Finance Committee Chair