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3.10.1 Financial stability
The institution’s recent financial history demonstrates financial stability.
Judgment of Compliance
Compliance
Narrative of Justification
Bennett has demonstrated financial stability as is evidenced by the unqualified audit opinions that the College received over the three most recent fiscal years. A comparison of all four years reveals that from all indicators, the financial health of the College is stable. Some of the key indicators are as follows:
- Unrestricted cash is positive. For the most recent fiscal year ended June 30, 2007, unrestricted cash and cash equivalents were $1,225,819 (Audited Financial Statements FY 2007).
- Unrestricted net assets (exclusive of plant assets and plant related debt) continue to increase. For the most recent fiscal year ended June 30, 2007 unrestricted net assets was $10,926,794 (Audited Financial Statements FY 2007).
- Over the three year period encompassing fiscal year 2005 through 2007, unrestricted revenues from operations have increased by a significant 7%.
The College uses the straight line method for managing depreciation. This method requires that the College recognize and account for depreciation expense over the useful lives of assets.
A restatement of Bennett College’s year-end financial statements for the past three years listing the institution’s Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets is presented in the table below. That summary of recent financial history presents yearly fiscal snapshots which demonstrate the College’s financial stability over this period.
Bennett College |
RESTATEMENT of REVENUES, EXPENSES, and CHANGES in UNRESTRICTED NET ASSETS |
for the Years Ended June 30, 2007,2006 and 2005 |
REVENUES |
June 30, 2007 |
June 30, 2006 |
June 30,
2005 |
Operating Revenues |
Student Tuition and Fees |
8,416,285 |
7,453,943 |
6,089,380 |
Government Grants |
3,780,712 |
4,617,304 |
6,039,411 |
Private gifts and grants |
3,038,669 |
2,984,963 |
3,870,730 |
Sales and Services |
2,655,702 |
2,487,129 |
2,103,940 |
Other Income |
68,018 |
23,880 |
2,069 |
Realized and Unrealized Investment |
841,100 |
306,709 |
544,019 |
Net Assets Released from restriction |
4,352,965 |
3,018,378 |
1,815,045 |
Total Revenue, Gains, and other support |
19,814,383 |
18,383,296 |
18,465,114 |
EXPENSES AND LOSSES |
Operating Expenses |
Instruction |
4,429,415 |
4,369,611 |
5,658,343 |
Public Service |
84,513 |
70,444 |
43,483 |
Academic Support |
2,596,021 |
2,659,085 |
3,722,509 |
Student Support |
1,218,514 |
1,228,358 |
1,145,667 |
Institutional Support |
6,940,880 |
7,770,360 |
5,938,569 |
Auxiliary Enterprises |
1,909,582 |
1,895,738 |
1,477,232 |
Total Operating Expenses and Losses |
17,178,925 |
17,993,596 |
17,985,803 |
Increase in Net Assets |
2,635,458 |
389,700 |
479,311 |
NET ASSETS |
Net Assets-beginning of year, as originally reported |
8,291,336 |
7,901,636 |
7,028,892 |
Net Assets-End of Year |
10,926,794 |
8,291,336 |
7,901,636 |
Total revenue exceeded total expenses annually. The increase in net assets rose from $479,311 in 2005 to $2,635,458 in 2007.
As mentioned in Core Requirement 2.11, the College’s endowment grew by 47% (8.4 as of June 30, 2004 and $12.2 as of June 30, 2007) over the past four years. The most recently concluded fiscal year boasts an impressive $1.9 million dollars of expandable earnings based on the Board of Trustees approved investment spending policy. (Investment Policies and Guidelines )
The College’s senior accounting staff is made up of experienced professionals in the areas of accounting and finance. The Controller is a Certified Public Accountant, licensed in the state of North Carolina. The Accounting Manager and Senior Accountants all have accounting degrees from reputable institutions of higher learning. In addition to the degrees earned, they all have the requisite experience to carry out their tasks for the University. Most recently the Vice President for Business and Finance resigned and the College is seeking a qualified candidate for the position.
Institutional Advancement
The College also continues to build its financial base through private fund raising. The College has completed its Revitalizing Bennett Campaign by raising $50 millions in gifts and pledges for endowment, current operations, faculty development, student scholarships, new initiatives and facilities. Alumnae giving have been very stable over the past five years with an average of 30% of the alumnae giving. Specific details of the fundraising results for the College are presented annually in the College FactBook. (College FactBook 2007-2008, Finance Section, p. 28)
Supporting Documents
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