Financials

Financial Statements

Independent Auditors’ Report
KPMG logo

The Board of Trustees, Vassar College:

We have audited the accompanying financial statements of Vassar College, which comprise the statement of financial position as of June 30, 2014, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the organization’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the organization’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the 2014 financial statements referred to above present fairly, in all material respects, the financial position of Vassar College as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with U.S. generally accepted accounting principles.

Other Matter

The accompanying financial statements of Vassar College as of June 30, 2013 and for the year then ended were audited by other auditors whose report, dated October 24, 2013, on those financial statements was unmodified and included an emphasis of matter paragraph that described the change in Vassar College’s presentation of contributed securities in its statement of cash flows discussed in note 1 to the 2013 financial statements, due to the adoption of Accounting Standards Update 2012-05, Not-for-Profit Entities: Classification of the Sale of Proceeds of Donated Financial Assets in the Statement of Cash Flows.

KPMG Signature

October 20, 2014
Albany, New York

Statements of Financial Position

June 30, 2014 and 2013 (In thousands)

  2014 2013
Assets        
Cash and cash equivalents $ 23,701 $ 20,220
Accounts receivable, net:        
Student accounts receivable   624   501
Student loans receivable   3,232   3,295
Grants receivable   444   1,232
Contributions receivable, net   27,574   38,985
Prepaid and other assets   11,664   4,696
Deposits held by bond trustee   77,586   105,940
Investments   1,007,152   908,138
Beneficial interests in outside trusts   9,096   8,632
Land, buildings and equipment, net   431,068   392,736
Total assets $ 1,592,141 $ 1,484,375
         
Liabilities and Net Assets        
Liabilities:        
Accounts payable and accrued expenses $ 31,201 $ 19,587
Deferred revenue and students’ deposits   3,732   3,848
Present value of beneficiary payments   12,901   12,992
Deposits held for others   4,098   3,985
Long-term debt   252,800   254,615
Accrued pension obligation   9,148   7,914
Asset retirement obligation   8,147   7,907
Accrued postretirement benefit obligation   26,194   26,865
Refundable government loan funds   2,606   2,667
Total liabilities   350,827   340,380
         
Net Assets:        
Unrestricted $ 354,206 $ 354,428
Temporarily restricted   557,630   482,040
Permanently restricted   329,478   307,527
Total net assets   1,241,314   1,143,995
Total liabilities and net assets $ 1,592,141 $ 1,484,375

See accompanying Notes to Financial Statements.

Statements of Activities

Year ended June 30, 2014 (with summarized comparative totals for 2013) (In thousands)

  2014 2013 2014 2013
  Unrestricted Temporarily Restricted Permanently Restricted Unrestricted Temporarily Restricted Permanently Restricted Total Total
Operating Revenues                                
Tuition and fees $ 121,535 $ $ $ 117,513 $ $ $ 121,535 $ 117,513
Room and board   23,472       22,391       23,472   22,391
    145,007       139,904       145,007   139,904
Less: Scholarships   (57,943)       (57,927)       (57,943)   (57,927)
Net tuition, fees, room and board   87,064       81,977       87,064   81,977
                                 
Endowment return used in support of operations   19,101   32,899      17,548   32,276     52,000   49,824
Government grants   2,026       2,184       2,026   2,184
Private gifts and grants   9,726   1,707     11,325   22,271     11,433   33,596
Other revenue   3,547       3,432       3,547   3,432
Auxiliary enterprises   4,516       4,648       4,516   4,648
Net assets released from restrictions   38,645   (38,645)     50,764   (50,764)      
Total operating revenues   164,625   (4,039)     171,878   3,783     160,586   175,661
                                 
Operating Expenses                                
Instruction   73,183       71,966       73,183   71,966
Research   3,152       4,281       3,152   4,281
Academic support   20,595       18,800       20,595   18,800
Student services   17,223       16,234       17,223   16,234
Institutional support   37,158       35,722       37,158   35,722
Auxiliary enterprises   21,431       22,200       21,431   22,200
Total operating expenses   172,742       169,203       172,742   169,203
Change in net assets from operations   (8,117)   (4,039)     2,675   3,783     (12,156)   6,458
                                 
Nonoperating Activities                                
Private gifts and other additions   723   (116)   17,923   6,198   10,968   21,323   18,530   38,489
Net investment return   25,139   110,581   907   18,025   80,282   740   136,627   99,047
Appropriation of endowment for operations   (19,101)   (32,899)     (17,548)   (32,276)     (52,000)   (49,824)
Gain on sale of artwork   6,419             6,419  
Other nonoperating activity   (520)   (987)   590   (309)   (767)   32   (917)   (1,044)
Adjustment for pension liability   (497)       5,573       (917)   (1,044)
Post-retirement benefits changes other than net periodic benefits cost   1,313       4,367       (497)   5,573
Replenishment of underwater funds         492   (492)      
Net assets released from restrictions and other transfers   (5,581)   3,050   2,531   3,579   (4,955)   1,376    
Change in net assets from nonoperating activities   7,895   79,629   21,951   20,377   52,760   23,471   109,475   96,608
Change in net assets   (222)   75,590   21,951   23,052   56,543   23,471   97,319   103,066
                                 
Net Assets                                
Beginning of year   354,428   482,040   307,527   331,376   425,497   284,056   1,143,995   1,040,929
End of year $ 354,206 $ 557,630 $ 329,478 $ 354,428 $ 482,040 $ 307,527 $ 1,241,314 $ 1,143,995

See accompanying Notes to Financial Statements.

Statements of Cash Flows

Years ended June 30, 2014 and 2013 (In thousands)

  2014 2013
Cash Flows from Operating Activities        
Change in net assets $ 97,319 $ 103,066
Adjustments to reconcile change in net assets to net cash used in operating activities:        
Depreciation and accretion   19,466   19,420
Loss on sale of fixed assets     83
Gain on sale of artwork   (6,419)  
Investment income on life income and annuity agreements   (527)   (659)
Payments to beneficiaries   1,353   1,387
Nonoperating contributions   (26,023)   (22,925)
Gifts in kind   (604)   (4,338)
Realized and unrealized gains on investments   (128,347)   (93,041)
Changes in assets and liabilities that provide (use) cash:        
Accounts receivable   604   (497)
Contributions receivable   11,411   (14,400)
Prepaid and other assets   (6,968)   1,822
Accounts payable and accrued expenses   4,475   (8,453)
Deferred revenue and students’ deposits   (116)   636
Present value of beneficiary payments   (91)   (259)
Deposits held for others   113   690
Asset retirement obligation   (155)   (385)
Accrued pension obligation   1,234   (4,799)
Accrued post-retirement benefit obligation   (671)   (2,868)
Net cash used in operating activities   (33,946)   (25,520)
         
Cash Flows from Investing Activities        
Purchases of land, buildings and equipment   (49,660)   (32,087)
Use of deposits held by trustee   28,354   17,522
Deposits with bond trustee     (87,085)
Proceeds from sale of land, buildings and equipment     296
Proceeds from sale of artwork   6,419  
Net loans repaid by students   124   18
Purchases of investments   (112,070)   (331,532)
Proceeds from sales and maturities of investments   140,939   360,395
Net cash (used in) provided by investing activities   14,106   (72,473)
         
Cash Flows from Financing Activities        
Proceeds from contributions for:        
Investment in endowment   22,062   12,594
Investment in long-lived assets   3,595   9,812
Investment subject to life income agreements   366   518
Investment income on life income and annuity agreements   527   659
Payments to beneficiaries   (1,353)   (1,387)
(Decrease) increase in refundable government loan funds   (61)   25
Issuance of long-term debt     87,085
Payments on long-term debt   (1,815)   (1,730)
Debt issuance cost     (664)
Net cash provided by financing activities   23,321   106,912
Net increase (decrease) in cash and cash equivalents   3,481   8,919
         
Cash and Cash Equivalents        
Beginning of year   20,220   11,301
End of year $ 23,701 $ 20,220
         
Supplemental Data        
Interest paid $ 6,110 $ 7,833
Noncash Investing Activities        
Purchases of capital assets included in accounts payable $ 7,139 $ 2,646

See accompanying Notes to Financial Statements.