FINANCIAL OPERATIONS
We have continued the trend of balanced budgets with the strong surplus in the most recent fiscal year. Those results included some unexpected savings from reduced energy demand as well as significant improvement in our Annual Fund. The Board voted to allocate a significant portion of the surplus to capital project work and deferred maintenance in the current fiscal year.
The current year is also tracking positively against budget, again experiencing reduced energy demands with the warm early winter and significant progress in boosting the Annual Fund.
In the area of planning, we continue to work closely with the Finance Committee of the Board to examine our long-term financial model, testing the significant budget drivers to ensure consistent support for operations. Strong giving support and prudent management of investments and expenditures will continue to provide the school with the necessary resources to fulfill its core educational mission.
ENDOWMENT and INVESTMENT MANAGEMENT
The School’s endowment posted a strong result for the fiscal year, with a total return of 13%, somewhat higher than our applicable benchmark of 12.4% and the Cambridge Associates endowment median of 11.8%. Over the past five years, the endowment has had a compounded return of 7.7%, again slightly above both benchmarks. Going forward, we believe that the five-year results are probably a better guide to the long-term future than the one-year performance, which reflected unusually favorable economic and market circumstances. The Investment Committee continues to stress global diversification, spread through many different asset classes and investment managers.
| Revenue, Expenses, and Endowment |
| |
2003 |
2004 |
2005 |
2006 |
| Revenue* |
$14,562 |
$15,263 |
$15,995 |
$17,087 |
| Operating Expenses* |
$14,253 |
$15,165 |
$15,956 |
$16,496 |
| Surplus* |
$309 |
$98 |
$39 |
$591 |
| Endowment* |
$86,127 |
$95,750 |
$107,887 |
$118,763 |
| Endowment Return |
+5.3% |
+15.6% |
+11.1% |
+13.0% |
| Cambridge Associates Independent School Median |
+4.3% |
+16.5% |
+10.6% |
+11.8% |
*All dollar figures are in thousands.