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Annual Report (2017) PB FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 1 Dr. Nicanor Reyes Sr. Founder and First President 2 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 3 2 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 3 CONTENTS Chairman’s Report 7 President’s Report 11 Board of Trustees Executive Committee Financial Highlights 23 Statement of Management’s Responsibility 24 for Financial Statements Report of Independent Auditors 25 Consolidated Statements of Financial Position 27 Consolidated Statements of Comprehensive Income 29 Consolidated Statements of Changes in Equity 30 Consolidated Statements of Cash Flows 32 4 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 5 VISION Guided by the core values of Fortitude, Excellence, and Uprightness Far Eastern University aims to be a university of choice in Asia. MISSION Far Eastern University provides quality higher education through industry-responsive and outcomes-based curricular programs. FEU produces globally competitive graduates who exhibit the core values of fortitude, excellence, and uprightness. FEU promotes sustainable and responsive research, extension, heritage and environment stewardship towards national and global development. 4 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 5 Fellow Stockholders: Two years ago, we conceived a Five We are enhancing our Value Education candidates. We promote from within, Year Strategic Plan which we detailed experience by using small classroom recruit from outside, and continue to in our 2015 Annual Report. collaborative spaces, technology aided pay competitive wages despite K-12 learning management systems and enrolment difficulties. As we approach our 90th Anniversary improving our campus WiFi capability. next January, we are pleased to advise We have integrated a Research you that despite challenges from the We produce Employable Graduates capability into Faculty duties, and K-12 implementation and free tuition by teaching them the skills of Digital we have provided thought provoking for State Colleges, we are on track Learning, Effective Communication, discussions on national issues through towards achieving our 2020 Roadmap. and Critical Thinking (DLECCT), as our Public Policy Center. proven by Top Five rankings in the Job Street Surveys and superior scores While partially family owned, Strategic Plan (to the national average) in the 98% of our Administrators and external licensure examinations. Faculty are capable professionals, We believe that we are now a Top Five and we will continue our Founder’s University in the Philippines from a We provide Meaningful Careers for vision of a business model that keeps combined academic, job creation, and our Faculty and Administrative staff, FEU financially sustainable and a financial point of view. as evidenced by continuing faculty Corporate Governance leader in development programs, both locally the Education sphere. and internationally, particularly for PhD 6 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 7 True, we face K-12 and environmental challenges, but we will soldier on and “Be Brave” to our Educational and Character Building mission. Financial Results Three significant events contributed to the but reduced expenses significantly results of FEU for AY 2016-2017. The through Voluntary Retirement and Academic Improvements first is the implemented educational stringent budgeting. FEU preferred as reform K-12 program“ which has well to safeguard as best as possible its As per tradition, our President, temporarily removed the first year of Human Talent in these difficult times. Dr. Michael Alba, will elaborate tertiary operations. The second is the on Academic issues in his yearly inaugural year of operations of our After a record P 1.2 billion Net Income President’s report. Senior High School (SHS). Third, we in 2015- 2016, Consolidated Net “ have the consolidation of the newly Income dropped to P 806 million. Highlights include enhancing our acquired Roosevelt College Inc (RCI) Autonomous University status, into the accounts of FEU. It is worthwhile to note Depreciation improving our Program accreditation increased by 11% demonstrating that status to 75% of all programs, and Consolidated student population grew FEU continues to make investments in receiving a second international by 6.6%. While tertiary enrolment both existing and new facilities. accreditation, this time from the dropped by 4,230 students due to Asia Pacific Institute for Events K-12, new basic education intake FEU Alabang is the single biggest one- Management for our Tourism and primarily from SHS and RCI of 6,225 time investment and we are excitedly Hotel Management programs. students contributed to overall looking forward to its dry run at the enrolment growth. The inaugural year end of 2018. A new building and a We have 10 Topnotchers in various of SHS was greater than expected gym for the RCI Rodriguez campus will Licensure examinations, and our validating the value of FEU brand. likewise be completed by 2018. For students’ scores consistently exceed 2019 we expect to complete additional national averages. Consolidated Revenues however facilities for FEU Main, FEU Diliman, decreased by 7% due to the FEU Cavite and RCI Marikina. Our Linkage and Mobility Office substitution difference between expanded its international university tertiary and basic tuition levels. Consolidated assets grew by 10% to partnerships from 11 to 22, spread P 11.96 billion. over 12 countries globally. Consolidated Expenses increased by 9% due to the addition of the entire A peaceful, harmonious, and quick We had a relatively stress–free cost base of the new SHS and RCI Collective Bargaining Agreement was integration of Roosevelt College which were not previously included. negotiated with both the FEU Faculty into the FEU system, and we were Existing entities experienced a drop in Union and the FEU Employees Union. pleasantly surprised with our student population as a result of K-12, retention of its 5,000 students. 6 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 7 Student Accomplishments We had a bountiful year for student accomplishments in various fi elds. Facilities Improvement Community Service and Cultural Programs The Men’s Track and Field team Continued renovation of the Manila won its seventh consecutive UAAP campus (Administration Building), and A new Volunteerism Center was opened. championship, while the Juniors Boys mini repairs in the Technology Building Football won its third consecutive and in Cavite were complemented by The President’s Committee on Culture UAAP championship. enhanced WiFi in the larger campuses. produced 20 events involving 11,000 students. Of national importance Janelle Frayna, Valedictorian for Arts New buildings included a were a well-received Hudyat and Sciences became the Philippines’ groundbreaking in FEU Diliman, exhibition, an annual Musica FEUropa fi rst female Women’s Chess completion of additional new choral competition, and 10 external Grandmaster. classrooms in Roosevelt Rodriguez, competitions with winners from the and continuing construction of an FEU Drum and Bugle Corps, the Ms. Ronalyn Pordan was one of the 18-story building in FEU Alabang. Dance Troupe, the FEU Guides, and Ten Outstanding Students of the the Theater Guild. Its Cultural App Philippines (TOSP). has been a social media success. One Carlo Diaz was the Philippines’ representative to the 2017 English Speaking Union Public Speaking Competition in London. Ms. Vanessa Leslie Rivera ranked fi rst in the 2017 Medical Technology We had a bountiful year for Board Examination. student accomplishments Ganiel Krishnan won the Mutya ng in various fi elds. Pilipinas-Asia Pacifi c crown. Joshua Brent Valencia received an Ayala Young Leaders award. 8 FAR EASTERN UNIVERSITY “ “ ANNUAL REPORT 2017 9 The Philippine Trust Index ranks Academe as the The Cheerdance team placed a strong We are in the process of searching for most trusted second in the UAAP competition. 28 (to celebrate the Founding Year of 1928) Outstanding Alumni to celebrate institution with a The Public Policy talk “Decoding our 90th year. Federalism” won a Quill Award. The Philippine Trust Index ranks The Publications Offi ce produced Academe as the most trusted institution “Adios Patria Adorada” by Alfredo Roces. with a 90+ score, and FEU will continue + to be a bastion as an established Value Educator for around 36,600 Metro Corporate Governance Manila students in 10 campuses. 90 We continue to improve in the True, we face K-12 and environmental score Corporate Governance scorecards for challenges, but we will soldier on and listed companies, and we are probably “Be Brave” to our Educational and the top among educational institutions. Character Building mission. We are also slowly reducing our We thank you our shareholders and carbon footprint with energy saving stakeholders for your continuing and instruments. appreciated support for our cause. Looking Forward We approach our 90th Anniversary with Fortitude, Excellence, and Uprightness. We are the UAAP Host this academic year, and have started off with a widely applauded “Go for Great” Opening Ceremonies. 8 FAR EASTERN UNIVERSITY ANNUAL REPORT 2017 9 cademic Year (AY) 2016–2017 A concern to be noted during this school fees in state universities and ushered in the five-year period five-year period is that the largest drop colleges (SUCs) and local-government- Aduring which Philippine higher in enrollment levels will likely be in administered universities and colleges education institutions (HEIs) are AY 2017–2018, because the college (LUCs), a tertiary-education subsidy
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