The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with standards established by the Financial Accounting Standards Board (FASB) for external financial reporting.

BALANCE SHEET

The balance sheet presents the College's financial position as of August 31, 2014. The College's largest financial asset is its investment portfolio, representing approximately 56% of the College's total assets, with a fair market value of $291 million as of August 31, 2014. The investment portfolio includes $277 million relating to the College's endowment, which represents contributions to the College subject to donor-imposed restrictions that such resources be maintained permanently by the College or designated to the endowment by the Board of Trustees. The endowment is managed to achieve a prudent long term total return (dividend and interest income and investment gains). The Trustees of the College have adopted a policy designed to preserve the value of the endowment portfolio in real terms (after inflation) and provide a predictable flow of income to support operations. In accordance with the policy, $11.2 million of investment return on the endowment portfolio was used to support operations in fiscal year 2014.

 The College's second largest and oldest asset is its physical plant, consisting of land, buildings, furniture and fixtures, and equipment. As of August 31, 2014, the net book value of plant assets was approximately $138 million, representing approximately 26% of the College's total assets. The College's liabilities of $209 million are substantially less than its assets. As of August 31, 2014, long-term debt represented the College's most significant liability at $117 million. In accordance with FASB standards, the net assets of the College are classified as either unrestricted, temporarily restricted, or permanently restricted. Unrestricted net assets are not subject to donor-imposed restrictions. At August 31, 2014, the College's unrestricted net assets totaled approximately $105 million. Temporarily restricted net assets are subject to donor-imposed restrictions that will be met either by actions of the College or the passage of time and appreciation on donor endowment funds. The College's permanently restricted net assets consist of endowment principal cash gifts and pledges.

STATEMENT OF CHANGES IN NET ACCESS

The statement of changes in net assets presents the financial results of the College and distinguishes between operating and non-operating activities. Non-operating activities principally include investment return, net of amounts appropriated as determined by the College's endowment spending policy changes in non-operating pension and postretirement liabilities and campaign contributions. Unrestricted operating revenues totaled approximately $193 million. The College's principal sources of unrestricted operating revenues were student tuition and fees, net of student aid, representing 58% of operating revenues, and grants and contracts for research and training programs, representing 21% of operating revenues. Investment return, auxiliary activities, and other sources comprise the remaining 21% of operating revenues. Operating expenses totaled $185 million.

Published Wednesday, Mar. 11, 2015