Archive for Lafayette Sports Fan Forum This forum is not affiliated in any way with Lafayette College, Lafayette College Athletics, The Maroon Club or any other official organization. Please be respectful of other posters as well as the athletes, coaches and administrators.
 


       Lafayette Sports Fan Forum Forum Index -> Whatever else
bethlehempard

Fiscal year winds down

Lafayette won't file its financial statements for months but June 30 is the end of the fiscal year. Out of curiosity I pulled up the most recent S&P report I could find, from October 2013.
    The report notes a solid balance sheer, years of net tuition growth and growing demand with an 18 percent increase in applications over two years. Still the college has reported operating losses, $2.4 million in 2013. S&P says the college will use depreciation to get to break-even operations. I'm not a non-profit accountant but clearly increased depreciation won't do much for cash flow as taxes aren't an issue. Still it affects some accounts.
    Lafayette was on course to around $200 million in debt at the time of this report. Interestingly "management has indicated that it does not have any additional debt plans" beyond a proposed $25 million sale for a few years.
     So any new projects are funded or will be funded by donations. Or there won't be any for awhile.
     The college's 2013 report indicates the usual; about $1 billion in total assets; operating revenue for the year of $141 million and operating expenses of $143 million; net increase in assets total of $22 million.
     Lafayette paid $7.2 million in interest. I saw a Vanguard report indicating that Lafayette debt due in 30 years carries the same rate as the MTA and Port Authority . Some rates are fixed using swaps. Beware.
     The college possesses a meager $2.87 million in art and historical treasures.
      Those items aren't subject to depreciation. The deprecation Schedule is: buildings acquisition and new construction: 40 years. Building improvements 25 years. Library books 10 years. Equipment 5-10 years. Vehicles 5 years.
Lafalum

I have found the 990's from the school to be very helpful in understanding expenses. They can be acquired on various internet sites or by asking for them from the IRS (there is a fee) or the college itself is obliged to provide them to donors on demand.

In addition if you go the college web site the audit is made available which has a lot of interesting tidbits and is published in Oct for the previous year. The 990's unfortunately aren't even filed for fiscal year 2012 until May of 2014 and are available with a large delay but they have more info like salaries of officials with bonuses, and perquisites.
ed65

Re: Fiscal year winds down

bethlehempard wrote:
Lafayette won't file its financial statements for months but June 30 is the end of the fiscal year. Out of curiosity I pulled up the most recent S&P report I could find, from October 2013.
    The report notes a solid balance sheer, years of net tuition growth and growing demand with an 18 percent increase in applications over two years. Still the college has reported operating losses, $2.4 million in 2013. S&P says the college will use depreciation to get to break-even operations. I'm not a non-profit accountant but clearly increased depreciation won't do much for cash flow as taxes aren't an issue. Still it affects some accounts.
    Lafayette was on course to around $200 million in debt at the time of this report. Interestingly "management has indicated that it does not have any additional debt plans" beyond a proposed $25 million sale for a few years.
     So any new projects are funded or will be funded by donations. Or there won't be any for awhile.
     The college's 2013 report indicates the usual; about $1 billion in total assets; operating revenue for the year of $141 million and operating expenses of $143 million; net increase in assets total of $22 million.
     Lafayette paid $7.2 million in interest. I saw a Vanguard report indicating that Lafayette debt due in 30 years carries the same rate as the MTA and Port Authority . Some rates are fixed using swaps. Beware.
     The college possesses a meager $2.87 million in art and historical treasures.
      Those items aren't subject to depreciation. The deprecation Schedule is: buildings acquisition and new construction: 40 years. Building improvements 25 years. Library books 10 years. Equipment 5-10 years. Vehicles 5 years.


With all due respect to Lafalum, interest rate swaps are common these days and definitely are not in the same danger (risk) league as Credit Default Swaps.
Lafalum

Re: Fiscal year winds down

ed65 wrote:
bethlehempard wrote:
Lafayette won't file its financial statements for months but June 30 is the end of the fiscal year. Out of curiosity I pulled up the most recent S&P report I could find, from October 2013.
    The report notes a solid balance sheer, years of net tuition growth and growing demand with an 18 percent increase in applications over two years. Still the college has reported operating losses, $2.4 million in 2013. S&P says the college will use depreciation to get to break-even operations. I'm not a non-profit accountant but clearly increased depreciation won't do much for cash flow as taxes aren't an issue. Still it affects some accounts.
    Lafayette was on course to around $200 million in debt at the time of this report. Interestingly "management has indicated that it does not have any additional debt plans" beyond a proposed $25 million sale for a few years.
     So any new projects are funded or will be funded by donations. Or there won't be any for awhile.
     The college's 2013 report indicates the usual; about $1 billion in total assets; operating revenue for the year of $141 million and operating expenses of $143 million; net increase in assets total of $22 million.
     Lafayette paid $7.2 million in interest. I saw a Vanguard report indicating that Lafayette debt due in 30 years carries the same rate as the MTA and Port Authority . Some rates are fixed using swaps. Beware.
     The college possesses a meager $2.87 million in art and historical treasures.
      Those items aren't subject to depreciation. The deprecation Schedule is: buildings acquisition and new construction: 40 years. Building improvements 25 years. Library books 10 years. Equipment 5-10 years. Vehicles 5 years.


With all due respect to Lafalum, interest rate swaps are common these days and definitely are not in the same danger (risk) league as Credit Default Swaps.


totally agree with you Ed. Interest rate swaps can be used to mange the duration of your debt very easily and with very little credit risk.
bethlehempard

I have no doubts about Lafayette's financial management. I have seen lesser organizations use swaps foolishly but I don't  mean to imply anything about the school.
Lafayette's endowment per student speaks for itself, and the school changed endowment policy in 2010 after the crunch.
As ratings agencies have noted LC also made a wise move to limit retiree benefits year ago.
Still I would welcome some growth in the student body. Hard to accomplish I know.

       Lafayette Sports Fan Forum Forum Index -> Whatever else
Page 1 of 1
Create your own free forum | Buy a domain to use with your forum