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A Closer Look: 2019-2020

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A Closer Look: 2019-2020 A CLOSER LOOK: 2019-2020 STRUCTURE FINANCE GROWTH Founded over a century ago, Appleby College aspires to be a beacon of learning and caring, dedicated to developing leaders of strong character thanks to our extraordinary community of students, parents, alumni and employees. This issue of A Closer Look provides an overview of Appleby’s current structure and finances, with a goal to answer some of the questions you may have as we focus on achieving our school’s mission: To educate and enable our students to become leaders of character, major contributors to, and valued representatives of their local, national and international communities. Who owns Appleby College? APPLEBY COLLEGE 2019-20 Appleby College was incorporated in private schools in our community, BOARD OF GOVERNORS 1911 as a not-for-profit organization by we have no shareholders or owners. CHAIR OF THE BOARD an Act of the Province of Ontario and is The Principal reports to the Board. Aubrey Baillie ’63 a registered charitable organization. Appleby is governed by a volunteer Appleby’s financial year corresponds to VICE CHAIR OF THE BOARD Board of Governors composed of the academic year, with a fiscal year-end Joanne McLaughlin alumni, current and past parents, of June 30th. This edition of A Closer VICE CHAIR OF THE BOARD business and community leaders. Our Look covers financial results that Gord McMillan Governors ensure that Appleby remains correspond to the fiscal year ended focused on its mission. Unlike some June 30, 2020. TREASURER & CHAIR, FINANCE COMMITTEE Vik Sachdev KEY 2019-20 FINANCIAL INFORMATION SECRETARY & CHAIR, ANNUAL REVENUE OPERATING EXPENSES GOVERNANCE COMMITTEE Allison Christilaw CHAIR, ADVANCEMENT COMMITTEE Geoff Spidle ’87 CHAIR, PROPERTY COMMITTEE $42.9M $39.2M Joanne McLaughlin CHAIR, RISK COMMITTEE William (Bill) Benson ’79 BOARD MEMBERS Wayne Carson Tuition 92% Salaries and Benefits 63% Andrew Cockwell ’93 Financial Assistance 11% Commercial Activities 4% Lisa Forwell Donations for Operating Purposes 2% Programme 8% Mark Gaskin ’78 Foundation Grant 2% Facilities and Contract Services 12% Chris Govan Other 6% Jacqueline Jabbour Janice Madon Jane Ngobia CAPITAL EXPENDITURES FINANCIAL ASSISTANCE SUPPORTED BY CHAIR, APPLEBY COLLEGE FOUNDATION John Platt ’78* PRESIDENT, $5.7M $4.2M ALUMNI ASSOCIATION Jas Brar ’98* PRESIDENT, PARENTS’ ASSOCIATION Sarah McMillan* A.W.B. Alumni Centre 49% Operating Budget 81% PRINCIPAL Other Renovations and Maintenance 34% Endowment 18% Innes van Nostrand* Technology 12% Gifts 1% Sustainability 4% *Ex-Officio COVID 1% Why does Appleby need philanthropic support? At Appleby, we are committed to As we look to the future, aside from the Appleby will also continue to make continuously improving the breadth of repayment of the school’s outstanding enhancements to our educational experience for our students as we strive $8 million debt, our number one priority programming in the areas of Positive to keep annual tuition increases to a will be to build the school’s endowment. Education, wellness, leadership, minimum. We fund the school’s The endowment, which is just over $22 experiential and project-based learning. programmes through a mix of tuition million, contributes to the total revenue Longer term, we continue to plan for fees, commercial activities, grants from of the school, primarily by supporting facility improvements such as additional The Appleby College Foundation, and the school’s financial assistance lab space and a dedicated performing philanthropic gifts. Cash receipts programme. However, as reflected in the arts space. To achieve these aspirations, support operating and capital chart below, Appleby’s endowment is we require additional philanthropic expenditures, debt repayment and the well below that of many of our peers. support as the cost of these plans maintenance of adequate cash reserves exceeds what we can support with our to ensure that we are financially stable current funding model. even in challenging times. INDEPENDENT SCHOOL ENDOWMENT SIZE As we entered fiscal 2020, we had just * 2020 Endowment numbers listed in CAD$ completed the A.W.B. Alumni Centre for Athletics and Student Life at a cost of $36 million, built with the support of donors and bank financing of $8 million. Our plan was to pay off bank debt through donor receipts and operating surpluses by mid-2022. However, like many organizations, the COVID-19 pandemic has had a negative financial impact on the school with lost revenues to date of approximately 020406080 100 120 $6 million, COVID-19 related capital Appleby College EndowmentRidley College Size (Millions) Upper Canada College investments of over $3 million and Branksome Hall St. Andrew’s College added operating expenses primarily Lakefield College School Trinity College School related to staffing. Sources: Endowment benchmarking survey (Hillfield Strathallan College), ucc.on.ca, branksome.on.ca, lcs.on.ca The Need for Financial Assistance A world class education not only requires annually as we strive to achieve our goal and future growth of this key deliverable. exceptional faculty, programmes and of 25 per cent while also significantly Over 90 per cent of Appleby’s financial facilities, it also demands a diverse increasing our provision for immediate assistance is directed through bursaries. socioeconomic student body. Having a COVID-19-related needs-based financial The remainder are loans or scholarships. talented range of students, regardless of assistance. This includes two of the school’s their backgrounds, is one of the central hallmark programmes – the Centennial hallmarks of great schools and it’s a vital However, compared to other leading Scholars Programme and Global Access part of the Appleby experience that independent schools, Appleby funds less Programme, which offer needs-based full benefits the whole community. of its financial assistance from support to recipients, including tuition philanthropy. In fact, over 80 per cent of costs, incidental fees and boarding costs. Appleby offers a combination of need- student financial assistance is funded based bursaries, loans and merit through the school’s operating budget. scholarships. In 2018-19 more than 18 This is a consequence of our relatively per cent of students received financial small endowment which makes up 18 assistance. In 2019-20 this number per cent of the funding. It is our goal for increased to more than 19 per cent. an increasing proportion of financial Thanks to generous donor support, we assistance to come from donations and are excited to see this number grow endowment, ensuring the sustainability FINANCFINANCIALFIIANLANC ASSIAISL ASSISTANCET ASSANCIESTANCE Number ofNu Studentsmber of StudentsReceiving Receiving Financial FinancialAssistance Assistance Financial FiAsnsistaancialn ceAs Esistaxpenditurence Expenditure 210 210 7 7 190 190 6 6 170 170 150 150 5 5 130 130 4 4 110 110 90 90 Millions $ Millions 3 Millions $ 3 70 70 Number of Students Number of Students Number 50 50 2 2 30 30 1 1 10 10 -10 -10 0 0 2013-14 2013-142014-15 2014-152015-16 2015-162016-17 2016-172017-18 2017-182018-19 2018-192019-20 2019-202020-21 2020-212021-22 2021-22 CENTENNIAL SCHOLARS GLOBAL ACCESS PROGRAMME Appleby’s financial assistance PROGRAMME For the past 12 years Appleby has programme changes lives, and with the Working with various community welcomed students from around the continued support of parents, alumni organizations, Appleby’s Centennial globe through the school’s Global and parents of alumni, financial Scholars Programme has provided full Access Programme. To date, Appleby assistance will continue to have an support to outstanding local students has hosted nine students and today extraordinary impact on the Appleby who are truly exceptional but face life works with Assist Scholars – a non-profit community for many years to come. challenges and financial barriers to organization that matches academically education. Over the past eight years, the talented, multi-lingual international programme has supported 40 students. students with North American independent secondary schools for a one-year stay, helping build diplomatic relationships and cultural understanding. How much do student fees contribute to Appleby’s operating budget? Approximately 92 per cent of our Our largest operating expense is our capital infrastructure, which included revenues are generated by tuition. In investment in people, and reflects an completion of the A.W.B. Alumni Centre 2019-20, fee income totaled nearly educational philosophy grounded in for Athletics and Student Life build, $40 million, only a slight increase over outstanding teaching. We offer an purchase of new computer equipment, the prior year as tuition increases were enriching and innovative educational and multiple boarding house renovations and offset by $1.4 million in tuition rebates co-curricular programme which is best sustainable investments in LED retrofits related to the Spring 2020 Remote achieved with low student-to-teacher among many projects. Learning Programme. Other revenues ratios in the classroom, and exceptional came from commercial activities, a faculty, supported by strong professional In 2020-21, we anticipate $4.5 million grant from the endowment held by development. In 2019-20 our budget for in capital investments, over half of The Appleby College Foundation, and salaries and benefits totaled almost which is in response to COVID-19 health philanthropic gifts. $25 million. and safety requirements. This includes the introduction of Hyflex learning
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