Annual Report FY09|10 College of the Atlantic
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Annual Report FY09|10 COLLEGE OF THE ATLANTIC www.coa.edu/support | 1 COA at a Glance College of the Atlantic is a small college deeply committed to interdisciplinary study and preparing students to make a difference in the world. Founded in 1969 as an alternative to a traditional liberal arts college, COA is a private liberal arts college with a close-knit educational community. The school is co-ed and non-sectarian. Accreditation — Fully accredited by the New England Association of Schools and Colleges Degrees Offered — Bachelor of Arts, Master of Philosophy, both in Human Ecology Academics — Unique interdisciplinary learning. No departments. All students design their own majors. Three main resource areas: Arts and Design, Environmental Sciences, and Human Studies. The learning approach is small classes (average size is 12 students) that emphasize engaged, interdisciplinary learning. The student to faculty ratio is 11 to 1. Academic Partnerships — Eco League, the University of Maine, Olin College of Engineering, SALT Institute for Documentary Studies and National Outdoor Leadership School (NOLS) Retention rate for first-year students that began in Fall 2010 — 89.5% (highest to date) Current four-year graduation rate — 53.4% Current six-year graduation rate — 69.1% (highest to date) Full-time Faculty — 28 Full-time Faculty with PhD/Terminal Degrees — 90% Part-time Faculty — 10 COA Development Office Dean of Development, Lynn Boulger 207-801-5620, [email protected] Annual Fund Director, Laura Johnson 207-801-5621, [email protected] Alumni Relations/Development Coordinator, Dianne Clendaniel 207-801-5624, [email protected] Manager of Donor Services and Prospect Research, Jennifer Hughes 207-801-5622, [email protected] College of the Atlantic Development Office 105 Eden Street, Bar Harbor, Maine 04609 www.coa.edu/support 2 | www.coa.edu/support COA Annual Report FY09|10 July 1, 2009–June 30, 2010 Despite the global economic stress of the last three years, stress that has exacted a toll on institutions across the United States, College of the Atlantic has prospered. Since 2007, our budgets have been balanced and are projected to be this year and next. Our endowment has significantly increased, as have our net assets. Not only have we avoided reductions in staffing, we have added to our faculty and staff, and raised wages. We have increased financial assistance to our students while maintaining need-blind admissions, raising the quality and size of incoming classes, and achieving the highest retention and graduation rates in our history. We have added endowed chairs, including the Steven K. Katona Chair in Marine Studies, the Sharpe-McNally Chair in Green and Socially Responsible Business, the Partridge Chair in Food and Sustainable Agriculture, the Allan Stone Chair in the Visual Arts, and the David Rockefeller Family Chair in Ecosystem Management and Protection. The secret to this success lies in the nature of COA. We have a story that is compelling, based on a mission that is consistent, and a future that shines with opportunity. Started as an experiment in alternative higher education, we are now a demonstrated alternative in educational excellence. We have a dedicated and generous family of supporters that have loved the College from the beginning, and a convincing case that we are a wise investment in the future. We have alumni whose accomplishments underscore our value. And we have the most dedicated staff and faculty imaginable. In our last accreditation review by the New England Association of Schools and Colleges, the NEASC Commission indicated that College of the Atlantic had raised frugality to a form of art. Every gift to COA supports our academic program, and each and every person on campus carefully stewards the resources available to us. We have felt the same economic stresses that have echoed around the country and the world, but we have managed them with a community and a synergy that has made us stronger. We are very proud to send this report to all of you who make COA possible. David F. Hales, President of COA A Letter from the Administrative Dean & CFO Last year, fiscal year 2010, continued to be a year of adjusting to the economic crisis that affected the general economy and most of the nation’s colleges and universities. We continued to hold back expenses, but we did not cut back any programs, nor did we layoff staff or faculty. We were able to balance the budget* for the third consecutive year, with a very small operating surplus, without drawing on the prior year “roll-forward,” which we rolled forward again to provide a small cushion for the current operating budget in fiscal year 2011. Enrollment continued to grow modestly with an undergraduate full time average financial equivalent (FTE) of 313 compared to the prior year of 292. While this resulted in an increase in tuition revenue, it was partially offset by an increase in student aid as families felt the impact of the slow economy. We saw an increase in enrollment of international students and funding from our largest single donors, Shelby and Gale Davis, who provide scholarship support to our students from the United World Colleges. Our balance sheet showed an increase in our net fund balances from $36.9M to $42.5M, primarily to gains in the endowment which nearly recovered from the losses of the prior year during the downturn in the stock market. The budget plan for fiscal year 2011 is balanced with the allocation of the prior surplus. It depends on continued modest growth in enrollment, which we are seeing at the outset of the year and growth of the Davis Foundation grant due to transition funding. Our budgeted expenses are nearly level-funded except for increases in the academic program with the addition of four new faculty, increases in health insurance, modest salary increases, and miscellaneous expenses such as insurance, audit and contingencies. As we look ahead over the next few years, we see challenges with the lingering effect of the economy, an increase in the need for student financial aid, keeping salaries competitive, supporting increased costs of health insurance, and deferred maintenance. Our strategic plans to address these challenges include continued modest growth in enrollment, launching a new capital campaign, expansion of our summer programs and continued support from our faithful donors. Andrew S. Griffiths Administrative Dean and Chief Financial Officer, COA *The college operating budget, like many nonprofits, treats capital expenditures on a cash basis and does not recognize depreciation, although our audited statements reflect standard accruals. 4 | www.coa.edu/support Financial Summary Operating Revenues FY09 FY10 FY11 Budget Tuition and Fees 9,331,000 10,518,000 11,533,000 (Less COA Student Financial Aid) (3,307,000) (4,507,000) (5,376,000) Net Tuition after Financial Aid 6,024,000 6,011,000 6,157,000 Contributions—Annual Fund 990,000 931,000 1,050,000 Davis Foundation UWC Grant 1,725,000 1,915,000 2,240,000 Endowment Allocation to Operations 700,000 766,000 926,000 Government Grants 326,000 392,000 390,000 Other Restricted Gifts and Grants 4,169,000 3,088,000 3,200,000 Student Housing and Dining 1,137,000 1,269,000 1,281,000 Summer Programs and Farm 683,000 662,000 640,000 Other 150,000 153,000 158,000 Less Contingencies n/a n/a (300,000) Total Revenues 15,904,000 15,187,000 15,742,000 Operating Expenses Instruction and Student Activity 3,180,000 3,429,000 3,740,000 Student Housing, Dining, and Grounds 1,193,000 1,257,000 1,347,000 Davis Foundation UWC Grant Expense 1,725,000 1,915,000 2,040,000 Work Study Expenses 264,000 305,000 320,000 Summer Programs, Museum, and Farm 680,000 591,000 575,000 General Administration 1,132,000 1,150,000 1,340,000 Payroll Taxes and Fringe Benefits 1,702,000 1,701,000 1,885,000 Development and Admissions 1,161,000 1,097,000 1,085,000 Interest and Debt Service 402,000 586,000 585,000 Grants, Research, and Projects 4,058,000 3,077,000 3,025,000 Capital Equipment 89,000 72,000 100,000 Total Expenditures 15,586,000 15,180,000 16,042,000 Net Operating Surplus Before Transfers (loss) 318,000 7,000 (300,000) Transfer from FY09 to FY10 (300,000) 300,000 — Transfer from FY10 to FY11 n/a (300,000) 300,000 Net Operating Surplus After Transfers 18,000 7,000 — Fund Balances (End-of-Year) Plant and Equipment (Net of Depreciation) 21,358,000 22,170,000 22,400,000 Long-Term Debt (9,570,000) (9,325,000) (9,125,000) Endowment 14,292,000 19,594,000 24,000,000 Advance Payment from Davis Foundation 5,144,000 5,729,000 5,000,000 Other Net Assets 5,674,000 4,380,000 4,400,000 Total Fund Balances 36,898,000 42,548,000 46,675,000 (Rounded to the nearest $1,000) www.coa.edu/support | 5 Unrestricted Operating Fund Sources 60% 14% 10% 9% 6% It is a pleasure to see the growing role and influence COA’s programs are Net Tuition Other Sources Annual Fund Endowment Summer & Ancillary having. I hope my contribution Activities will help encourage others to support this important undertaking. David Rockefeller Geographic Distribution of Students 10% 20% 30% 40% 50% Post-Graduation Professions International 5% 10% 15% 20% 25% Middle Atlantic Business Midwest Art & Design Mountain New England Education South Social Services or Government Southwest Sciences West 6 | www.coa.edu/support A Word from the Board of Trustees The Annual Report for Fiscal Year 2009/2010 acknowledges and celebrates the many supporters of College of the Atlantic who make this institution distinctive, innovative, and academically excellent.