ST. ANDREW’S COLLEGE ANNUAL REPORT 2017 Annual Report 2017 Philanthropy Supports our Mission Message from Scott Hayter, Executive Director of Advancement Through our philanthropic efforts, we will ensure the School has the best facilities and programs to support our mission. We have already started upgrading and renovating our four boarding residences, focusing on common areas with new kitchens, and plan to build new shower, sink, and toilet areas. We are seeking support for the revitalization of McLaughlin Hall, our science building, which opened in 1971 and is in need of complete refurbishment to bring it to the required standard of our teaching facilities. We will endeavour to grow endowed funds to bring mission- appropriate students to the College and to provide unrestricted support to School operations. Our endowment has grown to $32 million, but that is not enough to provide the level of scholarship and bursary assistance necessary to sustain our financial aid initiatives. This year, the School’s financial aid budget provided support to 27% of the student body at a cost Scott and Sue Hayter of $2.5 million. In June, we bid farewell to Edna Collins, Associate Director ime really does fly. It feels like only yesterday of Advancement, after 27 years of wonderful service to the that I first drove up the entrance and marveled College. I am proud of how well our Advancement team has at the beauty of our campus. That day, I met assumed her numerous responsibilities. polite young men and friendly staff and faculty. That was in fall 2007, and I started in my role in TAdvancement in summer 2008. My good impression has con- “ St. Andrew’s College is tinued to grow. constantly innovating, I look forward to my 10th and final year working at SAC. I will savour every event and every activity. I certainly look for- evolving, and leading in ward to a number of trips to visit our wonderful alumni around the world. The Old Boy network is truly an incredible one. the education of young men.” In June, we launched our new strategic plan, which will take us to 2022. While it focuses on academic innovation and I am pleased to report the evolution of our Communica- wellness, it also prioritizes the connectedness of our commu- tions team during my time at SAC. We now have a Director of nity, our facilities, and our financial sustainability. Communications, Nicolette Fleming, and a team of commu- In order to foster the mindset of being an “Andrean for Life” nications professionals: Cindy Veitch (retiring in December in all members of our community, we will develop, emphasize, 2017), Paul Mosey, Julie Caspersen, and Sean Maillet. and expand lifelong relationships with Andreans around the At the end of the school year, in June 2018, I hand over the world. We have added a 25th and a 40th reunion celebration to leadership of the Advancement team to Greg Reid, Assistant our Homecoming and our 50th reunion events. Old Boy use of Headmaster, Student Life. While much has been accom- our online network, Switchboard, continues to grow, and we are plished during my tenure, there will always be much more to excited about the development of a committee and networking do. St. Andrew’s College is constantly innovating, evolving, tools for alumni parents. We will enrich mentorship oppor- and leading in the education of young men. My wife, Sue, tunities between current students and Old Boys, and we will and I have made great friendships, and our connection with continue to provide opportunities for them to return to campus this amazing Andrean community will remain. We, too, are or to attend events in their locality. Andreans for Life! SCOTT HAYTER 2 FALL 2017 Q&A with Beth McKay Chief Financial Officer talks fees, facilities, and Foundation Does SAC qualify as a non-profit organization? Why do tuition fees go up more than CPI (consumer price St. Andrew’s College is actually a registered charity. index)? Although the Foundation issues all the donation receipts, we With more than 60% of our expenses related to salaries, it report to the government as a charity. is very difficult for us to maintain a CPI inflationary trend. “Baumol’s cost disease” theory helps explain why organiza- Do fees cover the cost of running St. Andrew’s College? tions such as hospitals and educational institutions, which are Annual donations and a transfer from the endowment (total- people intense, typically see costs rise at rates above inflation. ling approximately $1.7M) and ancillary operations such as the SAC Summer Camp, facility rentals, and investment Who is paying for all these new facilities? income (totalling approximately $2M) help offset the cost of The School has been very fortunate to have donors provide running St. Andrew’s College. Tuition and other mandatory most of the funds for the new facilities at the School. Recent fees make up 86% of the total revenue. improvements include the Yuill Family Athletic Centre (2012), the La Brier Family Arena (2014), the Centre for What are our biggest expenses? Leadership, Innovation & Performance (2015), the Bagher Obviously, most of our expenses are related to educating our Nejad Tennis Courts and parking areas, and the Petrachek students, but we do spend 21% of our budget maintaining McGillivray Piping & Drumming Centre (2016). Our Board our buildings and grounds and another 8% on dining ser- of Governors has been monitoring the replenishment of vices for students, faculty, and staff. cash reserves post-construction through the contribution of annual budget surpluses—a process expected to take What is the SAC Foundation for? another three years. The Foundation is a separate corporation that exists to support the School. Trustees for the Foundation provide What kind of reserves exist to protect the School? oversight on the investment management strategies for the The School targets reserves equal to 15% of operating endowed (long-term investments) funds. expenses to protect us in case we experience a significant enrolment decline or other factors affect our financial situa- Why do we need an endowment fund? tion. In addition to cash reserves, we have some unrestricted SAC’s endowment fund provides money to help offset the endowment funds that the School could access, if circum- costs of certain programs and also provides financial aid stances warranted. We hope to create more flexibility in assistance. Last year, the Foundation transferred $1.25M to endowed funds so that in a dire situation, the School could the School from its endowment fund. convert funds targeted for a specific cause to a general one, which we could use to avoid a future financial challenge. WWW.SAC.ON.CA 3 Annual Report 2017 SAC Foundation Statement of Operations 2016-2017 Year Ended June 30 2017 2016 Donations REVENUE Donations $6,632,160 $5,877,898 Endowment: 4% Interest & Dividends $844,289 $899,919 Realized Gain/(Loss) on Sale of Investment $1,086,289 $1,469,952 Capital: 88% Annual Giving: 8% Total Revenue $8,562,738 $8,247,769 DISTRIBUTIONS Scholarships & Bursaries $970,943 $889,810 School’s Priority Needs DISTRIBUTIONS & Designated Gifts Unrestricted Donations $669,458 $653,562 Other Designated Gifts $1,623,058 $381,676 Planned Giving Fees: 2% Expenses: 1% Gifts in Kind $55,718 $23,535 Capital Projects $4,173,112 $4,481,201 Other (CMP & Major Renovations) Designated Gifts: 22% Total Distributed to St. Andrew’s College $7,492,289 $6,429,784 CMPII: Unrestricted: 46% 9% OTHER DISTRIBUTIONS Scholarships, Major Renovations: Investment & Custody Fee Bursaries & Awards: $163,275 $156,120 8% & Credit Card Charges 12% Planned Giving Expense $110,220 $126,706 Total Distributions $7,765,784 $6,712,610 Donations BY CONSTITUENCY ENDOWMENT SUMMARY Excess (Deficit) of Revenue over $796,954 $1,535,159 Expenses for the Year Other: 29% Fund Balances Beginning of Year $30,466,744 $30,013,646 Old Boys: 36% Unrealized Gain (Loss) on Investments $879,765 -$1,082,061 Fund Balance End of Year $32,143,463 $30,466,744 Current Parent: 35% 4 FALL 2017 Planning Ahead “Young” Old Boy makes impactful donation of life insurance avid Miklas ’07 is payments of just over $3,200 with a real numbers man. David, an agreement extended to The St. Andrew’s Old Boys. The $250,000 policy will College grad has an be paid off in 10 years, at which engineering degree time David’s gift will be recognized D and an MBA, and knows the right through the School’s Endowment numbers on a page can translate into Fund through a scholarship or financial security. He also knows bursary to a student. David is also the right combination of numbers provided with a charitable tax receipt can add up to something very for his $1,600 annual contribution. meaningful. In total, he will have paid $16,000 “I had no intention of giving to St. (pre-charitable tax receipt) in pre- Andrew’s at this point in my life,” miums to donate a fully paid-off says David, 28, a financial planner $250,000 life insurance policy. who specializes in life insurance at He promotes this type of philan- Oakville-based Stewart Financial. thropy to Old Boys of all ages. “You However, he took his love of could make a real impact,” David numbers and his passion for giving says. “You want to feel like you’re and donated a $250,000 life insur- making a difference.” ance policy to SAC. “Wow, this is In fact, philanthropy is a bit of really worthwhile now, and I like the a family tradition: David’s father idea of seeing my donation being put Gregory Miklas ’76 and his to work when it’s fully paid off in 10 uncles, Paul Miklas ’80 and years,” David says.