Financial Report

This year the Financial Tables and Charts are provided as a PDF for easier printing.

Plymouth State University posted another successful experience of full enrollment and positive financial trends in fiscal year 2006. Once again total enrollments reached an all-time high and, despite escalating utility costs, PSU was able to achieve a modest operating reserve. The strategies undertaken over the past few years to improve retention and average class size appear to be working. However, PSU continues to face challenges and an ever-changing economic environment that could result in a significantly tighter budget. Therefore, the University must continue its strategic planning to ensure that critical aspects of the institution are funded and that PSU remains financially secure in the years to come.

Enrollment
Undergraduate enrollment has grown for six years in a row. For fall 2005, the number of undergraduate students is 4,081. This is an increase of 62 students from 2004. Retention for the upper undergraduate classes continues to be very strong. Graduate student enrollment has seen significant growth over the past few years, particularly in the M.Ed. program. The College of Graduate Studies continues to add new degree programs, offers online and hybrid courses as well as traditional classroom courses, and offers its program at eight sites throughout New Hampshire.

Continuing education, part of the Frost School of Continuing and Professional Studies, has experienced significant increases in enrollment of nontraditional students, particularly during Winterim and summer sessions. Enrollments increased nearly 22 percent over the previous year, largely due to a greater number of online course offerings.

Income
Table 1 shows that state appropriation represents 14 percent of the University's entire revenue for FY06. Last year it was 14.8 percent of total revenue. Despite annual increases in state support, the state of New Hampshire has not kept up with the revenue growth experienced elsewhere across the institution. For instance, state appropriation increased $233,000, or 2 percent, from FY05 to FY06, but grants and contracts grew by nearly $447,000, or 8.4 percent; endowment gifts increased almost $392,000, or 69.5 percent; tuition and fees also rose 8.4 percent; and sales of auxiliary operations grew by 10.8 percent. It is important to note that revenues from grants and contracts and endowment gifts are restricted for the most part and, therefore, cannot be used to fund educational and general operating expenses.

Tuition/Fees
Tuition and fees, as shown in Table 1, continue to increase along with enrollment. In FY06, the growth in enrollment occurred as the result of a larger increase in the number of in-state students and a decrease in out-of-state students. The mix of in-state versus out-of-state students continues to be a priority at PSU. The University's reputation for academic excellence and a caring campus community make PSU an increasingly popular choice for college bound New Hampshire students.

Expenditures
The actual cost of utilities increased 21.4 percent, or $756,000, over FY05. This is due in part to the escalating cost of oil and other utility expenses. Deferred maintenance also continues to be a challenge at PSU. Currently, the physical plant department estimates that outstanding deferred maintenance is approximately $21.7 million. Approximately $2.5 million per year is invested to address these issues. The challenge has been catching up—solving the problem for the long term will take more than the current level of investment. The Campus Budget Committee and the University Planning Committee are reviewing this issue and trying to address it within the annual budget cycle. The USNH Board of Trustees also shares this concern and is studying the issue. Student financial aid dropped 9 percent in FY06 to $6.8 million, but this appears to be an aberration. It is expected to exceed the $7.5 million level in FY07.

Financial Aid
Student financial aid has been a significant cost driver for the last 10 years. Beginning in FY96, PSU began a program to increase the amount of financial aid dedicated to scholarship or non-need-based aid. Over this period, the University invested over $850,000 in new funding for innovative programs that support this strategic initiative. Statistics show that PSU's retention of students receiving scholarship support is among the highest.

Net Assets
Net assets are similar to net worth or retained earnings in that it reflects the net of total assets of Plymouth State University less liabilities. It is important for the University to continue to grow its net assets in order to maintain financial stability and to continue its current A1 bond rating. Net assets also serve as a contingency reserve that is available in the case of a financial emergency.