Report on Financial Position

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Aerial shot of Fee Glade illuminated at night

Designation of Funds – July 1, 2016-June 30, 2017

Designation of Funds

Current Operations
Berea Fund - Unrestricted$5,221,250.79
Student Aid - Restricted$94,995.17
Other - Restricted$10,228,111.79
Subtotal - Current Operations$15,544,357.75 (37.5%)
Capital Purposes$11,570,046.76 (27.9%)
Endowment
Restricted$2,519,434.69
Unrestricted$11,574,461.83
Subtotal - Endowment$14,093,896.52 (34.0%)
Other
Student Loan Fund$400.00
Gift value of Annuities and Life Income Agreements$146,119.26
Gifts-In-Kind$81,801.36
Subtotal - Other$228,320.62 (0.6%)
GRAND TOTAL$41,436,621.65 (100.0%)

Source of Support – July 1, 2016-June 30, 2017

Source of Support

Friends
Outright Gifts$5,641,198.06
Bequests$8,238,346.81
Gifts Value of Annuities and Life Income Agreements$97,195.16
Gifts-In-Kind$76,507.36
Subtotal - Friends$14,053,247.39 (34%)
Alumni
Outright Gifts$2,880,050.23
Bequests$4,129,657.23
Gift Value of Annuities and Life Income Agreements$48,924.10
Gifts-In-Kind$5,294.00
Subtotal - Alumni$7,063,925.56 (17%)
Foundations, Corporations, & Other Sources
General Welfare Foundations$3,717,665.95
Corporations and Corporate Foundations$16,528,951.86
Organizations, Associations, and Clubs$49,956.06
Gifts-In-Kind$0
Fundraising Consortia$16,074.83
Religious Groups$6,800.00
Subtotal - Foundations, Corporations, & Other Sources$20,319,448.70 (49%)
Total Outright Gifts, Bequests, and Gift Value of Annuities and Life Income Agreements$41,354,820.29
GRAND TOTAL$41,436,621.65 (100.0%)

Statements of Financial Position – June 30, 2017 and 2016

2017

2016

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$77,870,619

$90,294,783

Receivables and accrued interest

7,523,551

7,716,845

Inventories

1,207,698

1,212,416

Prepaid expenses and other assets

1,066,758

744,220

Contributions receivable and bequests in probate

19,898,012

18,632,214

Total current assets

107,566,638

118,600,478

Long-Term Prepaid Expenses other Assets

853,141

673,131

Long-Term Contributions Receivable and Bequests in Probate

16,672,225

10,248,455

Long-Term Receivables

813,867

1,180,271

Long- Term Investments

Donor restricted endowment

629,421,300

575,463,000

Board designated endowment

520,939,000

475,216,900

Annuity and life income

24,533,700

24,103,000

Funds held in trust by others

29,017,000

26,783,000

Other investments

4,954,000

4,662,500

Total long-term investments

1,208,865,000

1,106,228,400

Property, Plant and Equipment (net)

209,194,467

179,098,114

Total assets

$1,543,965,338

$1,416,028,849

Liabilities and Net Assets

Current Liabilities

Accounts payable and accrued expenses

$13,722,640

$10,662,210

Accrued salaries and wages

3,695,135

3,576,988

Deposits and agency funds

660,872

606,141

Deferred income

150,743

228,241

Current portion of interest rate swap valuation

568,414

718,943

Current maturities of long-term debt

3,577,966

3,713,815

Total current liabilities

22,375,770

19,506,338

Long-Term Liabilities

Actuarial liability for annuities payable and other liabilities

14,216,648

11,674,212

Deferred financing expense

(430,462)

(394,344)

Interest rate swap valuation

4,514,586

6,778,057

Long-term debt

39,146,807

43,319,772

Total long-term liabilities

57,447,579

61,377,697

Total liabilities

79,823,349

80,884,035

Net Assets

Unrestricted

655,286,392

594,562,310

Temporarily restricted

509,531,257

449,506,737

Permanently restricted

299,324,340

291,075,767

Total net assets

1,464,141,989

1,335,144,814

Total liabilities and net assets

$1,543,965,338

$1,416,028,849

Statements of Activities – Years Ended June 30, 2017 and 2016

2017

2016

OPERATING REVENUE

Spendable return from long-term investments

$47,250,668

$46,518,168

Gifts and donations

6,952,098

5,982,880

Federal and state grants

30,562,529

34,803,217

Fees paid by students

1,325,111

1,217,227

Other income

4,220,999

3,380,377

Residence halls and dining service

8,648,486

8,665,451

Student industries and rentals

4,465,037

4,419,676

Net assets released from restrictions

16,586,449

13,080,188

Gross operating revenue

120,011,377

118,067,184

Less: Student aid

(3,676,734)

(3,932,016)

Net operating revenue

116,334,643

114,135,168

OPERATING EXPENSES

Program services --

Educational and general

71,246,533

71,451,253

Residence halls and dining service

9,850,044

9,539,534

Student industries and rentals

5,457,895

5,405,061

Total program services

86,554,472

86,395,848

Support services

18,145,397

15,978,351

Total operating expenses

104,699,869

102,374,199

Operating revenue in excess of operating expenses

11,634,774

11,760,969

OTHER CHANGES IN NET ASSETS

Gain on sale of property, plant and equipment

40,738

172,131

Gain (loss) on valuation of interest rate swaps

2,414,000

(2,288,600)

Investment return more (less) than amounts designated for current operations

85,308,467

(66,687,687)

Gifts and bequests restricted or designated for long-
term investments

12,456,048

11,081,706

Restricted gifts for property, plant and equipment and other specific purposes

29,702,093

40,421,432

Restricted spendable return on endowment investments

5,438,231

5,229,287

Reclassification of net assets released from restrictions

(16,586,449)

(13,080,188)

Net adjustment of annuity payment and deferred giving liability

(1,410,727)

(771,331)

Total change in net assets

$128,997,175

$(14,162,281)

One Comment on “Report on Financial Position”

  1. I am preparing a talk on the impact of the endowment excise tax on colleges and universities. Berea, of course is a most sympathetic example of what’s wrong with it. From looking at your financials I can’t figure out with any certainty: what is the amount of restricted endowment, temporarily restricted and unrestricted? What is your endowment spend rate? How much annual student scholarship funds are paid from endowment. What percentage of the annual operating budget comes from the endowment? Thank you for responding.
    Jim Fishman

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