A review of the actual statements provides insight into the form and content of private not-for-profit college reporting practices.

1. What percentage of the colleges total revenues (including nonoperating items and revenues of all funds) is attributable to tuition and fees (net of scholarship aid, because scholarships are, in effect, tuition discounts)? Do you think that, relative to other revenues, tuition is a fairly stable revenue? Explain.

2. A note to the financial statements indicates that the colleges board of trustees designates only a portion of the colleges cumulative investment return for support of current operations (both restricted and unrestricted). How much was so designated in 2014? Taking into account that amount, what was the colleges net income from investments for the year?

3. What are likely examples of auxiliary enterprises? Taken collectively, were they profitable in 2014?

4. How much of temporarily restricted funds did the college expend during the year?

5. What percentage of the colleges total assets is attributable to investments? Of the investments, approximately what percentage is most likely attributable to endowments?

6. A note to the financial statements reports that compensation costs were over $69 million. Why is that amount not reported on the statement of activities?

TABLE 2-11 Hamilton College Total 2013 Total 90,346 21,120 (32,459) 79,007 30,925 86,388 20,186 (29,939) 76,635 30,149 Statement of Activities Year ended June 30, 2014 (with summarized information for the year ended June 30, 2013) (dollars in thousands) Temporarily Permanently Unrestricted Restricted Restricted Operating revenues: Tuition and fees $ 90,346 Room and board 21,120 Scholarship aid (32,459) Net student fees 79,007 Investment return designated for 4,182 26,743 operations Other investment income 4,555 Private gifts and grants 6,582 2,463 Other sources 2,636 1,611 Net assets released from restrictions 28,801 (28,801) Total operating revenues 125,763 2,016 Operating expenses: Instruction 57,158 Research 1,048 Academic support 17,461 Student services 15,191 Institutional support 17,641 Auxiliary enterprises 20,724 Total operating expenses 129,223 4,555 9,045 4,247 8,213 1,063 ITIL IT LIITTI! 127,779 116,060 TILL 111 57,158 1,048 17,461 15,191 17,641 20,724 129,223 53,710 1,357 16,355 14,472 16,416 19,279 121,589 (3,460) 2,016 - (1,444) (5,529) 418 9,813 4,117 8,058 14,348 148,523 10,903 79,137 21,793 118,672 (3,131) (2,900) Increase (decrease) in net assets from operations Nonoperating activities: Private gifts Investment return, net of amounts designated for operations Change in annuity and life income obligations Net assets released from restriction and changed restrictions Other Increase in net assets from nonoperating activities Increase in net assets Net assets, begining of year Net assets, end of year See accompanying notes to financial statements. (1,096) (2,265) (2,035) 1,167 1,098 246 39 285 1,243 11,346 160,025 88,383 23,555 20,095 210,520 $ 230,615 125,124 127,140 482,457 609,597 11,346 226,489 237,835 158,581 919,466 1,078,047 82,854 833,048 915,902 TABLE 2-12 Hamilton College 2013 Statements of Financial Position June 30, 2014 and 2013 (dollars in thousands) 2014 Assets Cash and cash equivalents $ 28,126 Short-term investments 19,917 Student and other accounts receivable, net 1,209 Loans to students, net 2,494 Contributions receivable, net 15,025 Beneficial interest trusts 7,587 Deposits with trustees of debt obligations 7,186 Collateral received for securities lending 4,500 Medium-term investments 100,715 Investments 927,520 Other assets 6,771 Property, plant and equipment, net 261,139 Total assets $ 1,382,189 18,818 19,721 2,180 2,610 16,885 7,137 2,119 4,476 99,414 773,828 7,285 241,600 1,196,073 Liabilities and Net Assets Accounts payable and accrued liabilities Deposits and advances Liability under securities lending transactions Annuity and life income obligations Accumulated postretirement benefit obligation Other long-term obligations Long-term debt Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $ 13,622 5,423 4,500 20,171 3,422 4,917 252,087 304,142 8,828 3,857 4,476 19,671 3,418 4,763 231,594 276,607 230,615 609,597 237,835 1,078,047 $ 1,382, 189 210,520 482,457 226,489 919,466 1,196,073