2.11.1 Financial Resources

The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services.

The member institution provides the following financial statements: (1) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a system-wide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (2) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the change in unrestricted net assets attributable to operations for the most recent year; and (3) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board.

Audit requirements for applicant institutions may be found in the Commission policy “Accreditation Procedures for Applicant Institutions.”

Judgment of Off-Site Review Committee

Non-Compliance

Comments of Off-Site Review Committee

The college provided an institutional audit and written management letter for the most recent fiscal year and an annual budget that was preceded by sound planning, subject to sound fiscal procedures, and approved by the governing board. However, the Off-Site Committee was unable to locate the required statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt.  The narrative did reference the Audited Financial Statement for FY 2007; however, this was not satisfactory as it contained total unrestricted net assets (not exclusive of plant as required). 

The financial base of the institution looks to be sound, stable and sufficient to support the mission of the college and its programs.  Increases in enrollment over the last three years has led to an increase in net tuition revenue, growth of net assets over the same period, growth of the college’s endowment, and positive comparative financial ratios.  The college provided documentation of the planning for the annual budget through the Institutional Effectiveness Cycle and  minutes that the annual budget was approved by the Board of Trustees on June 22, 2007.

Bennett Focused Response

Bennett College has demonstrated financial stability as evidenced by the unqualified audit opinions that the College received over the last three fiscal years (Financial Management Letters (FY 2005, FY 2006, and FY 2007).  The most recent audit of finances (Audited Financial Statements FY 2007) reveals that from all indicators, the financial health of the College is stable.  Please see the table below that presents the required statement of unrestricted net assets, exclusive of plant-related debt.  It is noted that the College’s net assets increased between FY2006 and FY2007.

Bennett College	2007	2006
	Unrestricted	Unrestricted
ASSETS:
Cash and certificates of deposit	$        1,225,819	$                     -
Student, other accounts and loans receivable,
less allowance for doubtful accounts	1,189,274	1,185,717
Pledges receivable	-	-
Receivable from Unrestricted Net Assets	-	-
Prepaid expenses	425,335	363,173
Inventories	4,519	5,016
Investments, at market value	-	-
Art collections, at estimated appraised value	3,912,595	3,912,595
Total assets	$     6,757,542	$    5,466,501
LIABILITIES:
Accounts payable, deposits
and accrued expenses	$        1,234,117	$       1,591,939
Borrowings from Temporarily Restricted Net Assets	-	1,406,819
Total liabilities	1,234,117	2,998,758
NET ASSETS:
Unrestricted	5,523,425	2,467,743
Temporarily restricted	-	-
Permanently restricted	-	-
Total net assets	5,523,425	2,467,743
Total liabilities and net assets	$     6,757,542	$    5,466,501

Supporting Documents

SOURCE	LOCATION/Special Instructions
Audited Financial Statements (FY 2007)	Office of Business and Finance
Financial Management Letters FY 2005	Office of Business and Finance
Financial Management Letters FY 2006	Office of Business and Finance
Financial Management Letters FY 2007	Office of Business and Finance