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S A N TA C L A R A U N I V E R S I T Y
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PMS 201 S A N TA C L A R A U N I V E R S I T Y
S A N TA C L A R A U N I V E R S I T Y
Operating Financial Statements Annual Report
Fiscal Year 2015
Strategically Led.
Academically Integrated.
Fiscally Sound.
2. Robust Results, Driven by Student Demand
Santa Clara University (SCU) concluded its Fiscal Year 2015 with both
impressive student demand and equally as impressive operational and
fiscal output.
For the fiscal year ending June 30, 2015, student engagement in academic
programs continued a heritage of embracing vibrant integrated curricula,
challenging academic standards, and dedication to holistic learning.
Debuting this year, the Santa Clara 2020 Strategic Plan provides an
innovative and clear directional compass for the institution. The Plan is
also a consistent source of guidance to academics and administrators
regarding decision-making at all levels of the organization.
Innovative policy decisions made by the Board of Trustees ensure that
SCU maintains its path toward consistently sound financial outcomes.
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3. High Rankings by Influential Sources
U.S. News & World Report ranked Santa Clara University #2 in Regional Universities
(West), in the 2015 U.S. News Best Colleges. Also noteworthy, the School of
Engineering placed #12 among Master’s degree-level institutions. PayScale ranked
the SCU Leavey Business School #4 in “Return on Investment.” And lastly, The
Princeton Review ranked SCU 19th in its “Top 50 Green Colleges” list.
Gifts That Ignite Transformation
The University received several extraordinary and transformational gifts in FY2015
that support our people and programs. First, Phil and Peggy Holland donated
$
10 million to support entrepreneurial education at SCU. Next, Howard and Alida
Charney donated $
10 million to support the construction of the new Law School
building. And Jeff and Karen Miller graciously donated $
25 million to strengthen the
Miller Center for Social Entrepreneurship.
Fundraising in FY2015 resulted in total gifts of $
83.1 million, of which $
29.8 was
cash. The University is grateful for another year of generous and record-setting
external support.
Currently, the University is in the silent phase of “SCU Momentum,” an ambitious
fund-raising campaign, the proceeds from which will help us to implement and
achieve the groundbreaking strategies outlined in Santa Clara 2020.
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4. UNDERGRADUATE
TUITION
GRADUATE
TUITION
STUDENT
FEES
ENDOWMENT
INCOME
AUXILIARIES ANNUAL
GIFTS
OTHER
$
0
$
50
$
100
$
150
$
200
$
250
56%
19%
2%
7%
9%
3% 4%
Operating Financial Results
The FY2015 financial statements represent the
operational activities of Santa Clara University and are
consistent with the approved budget for the fiscal year.
Annual net tuition and fees continued to increase as
outlined in Chart 1, reflecting the University’s student
recruiting efforts, approved rate increases, and strong
undergraduate retention.
From Fall 2013 to Fall 2014, SCU’s undergraduate
enrollment grew modestly from 5,235 to 5,237 full-
time equivalents. Over the same period, total graduate
and Law School enrollment grew from 2,799 to 3,280,
an increase of 17%. Net tuition and fees (tuition and
fees less student financial aid) represented 71% ($
238
million) of SCU’s operating revenue in FY2015 — as
compared to 69% ($
229 million) in FY2014.
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TUITION
& FEES
FY 11 FY 12 FY 13 FY 14 FY 15
FINANCIAL
AID
NET
$
270.7
-$
62.9
$
207.8
$
280.7
-$
68.8
$
211.9
$
288.5
-$
73.5
$
215
$
308.7
-$
80
$
228.7
$
322.2
-$
83.6
$
238.6
NET TUITION AND FEES
($ MILLIONS)
FY2015 SOURCES OF REVENUE
($ MILLIONS)
Source: Management Report
Chart 1
Chart 2
5. FY 11
Tuition & Fees
Operating Expense
$
0
$
100
$
200
$
300
$
400
FY 12 FY 13 FY 14 FY 15
The University continues to invest in instruction
and academic support, which totaled $
169 million
in FY2015, compared to $
165 million in FY2014.
Personnel total compensation was the major driver of
expenditures excluding financial aid. Compensation,
including salaries and benefits, accounted for 60% of
expenditures, net of financial aid. (See Chart 3)
As is SCU’s tradition, the University maintained its
focus on the cost of education, by minimizing expenses
for students and families wherever possible. Chart 4
outlines SCU’s year-over-year tuition and fees versus
operating expenses. The University closely manages
its costs in order to limit increases in tuition, room, and
board, while still actively investing in programs that
support the Strategic Plan and SCU’s Jesuit values.
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FACULTY
SALARIES
STAFF
SALARIES
BENEFITS OPERATING
EXPENSES
STUDENT
WAGES
LIBRARY
ACQUISITIONS
CAPITAL
SPENDING
DEBT
PAYMENT
FINANCIAL
AID
$
0
$
20
$
40
$
60
$
80
FY2015 EXPENDITURE BREAKOUT
($ MILLIONS)
GROSS TUITION & FEES VS
ANNUAL OPERATING EXPENDITURES
($ MILLIONS)
Chart 3
Chart 4
6. The University’s current first-year admission rate
shows that SCU is more selective in terms of
admission criteria, as compared to our rate 10 years
ago, as depicted in Chart 5.
Another indication of increased student academic
quality is this year’s median first-year SAT score of
1,300, compared to scores of the past 10 years, as
shown in Chart 6.
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FIRST-YEAR ADMISSION RATE
FIRST-YEAR MEDIAN SAT
BASED ON FALL ENROLLMENT
BASED ON FALL ENROLLMENT
Chart 5
Chart 6
2005 2006 2007 2008 2009 2010 2013 201420122011
0%
10%
20%
30%
40%
50%
60%
70%
2005 2006 2007 2008 2009 2010 2013 201420122011
1160
1180
1200
1220
1240
1260
1280
1300
7. Endowments
Through June 30, 2015, SCU’s 1-year, 5-year, and 10-year average
annualized rate of return on endowment (net of fees) was 4.2%,
10.2% and 6.6%, respectively, which exceeded peer universities
and investment policy guidelines. Chart 7 presents the rate of return
for the past 10 years.
The market value of endowment investments was $
885 million
on June 30, 2015, up from $
875 million in 2014. New gifts to the
endowment were $
12 million in FY2015. The spending formula
resulted in $
29 million of endowment support for faculty, student
scholarships, and academic programs this fiscal year.
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ANNUAL ENDOWMENT RETURN PERFORMANCE
Chart 7
2006
0%
10%
20%
30%
-30%
-20%
-10%
2007 2008 2009 2010 2011 2012 2013 2014 2015
SCU Endowment
Policy Portfolio
Global 60/40
ACWI
8. Financial Position
SCU’s net assets have increased significantly over the
past 10 years, reaching a total of $
1.5 billion in FY2015,
up from $
935 million in FY2006, as depicted in Chart 8.
SCU continues its investment in facilities to support the
University’s academic programs and growth plans. In
FY2015, the University completed the following:
• a major renovation of Walsh and McLaughlin Residence Halls;
• renovation and reconstruction of Stevens’ Stadium;
• construction of the Stevens’ Soccer Training Facility;
• creation of Alviso Mall between Franklin and Santa Clara Streets;
• improvements to the softball stadium; and
• several major infrastructure projects.
In total, the University spent $
60 million on capital
projects in FY2015. Chart 9 outlines the growing
investment the University has made in facilities and
equipment over the past 10 years.
SCU’s total outstanding debt as of June 30, 2015
— including capitalized leases — was $
249 million,
an increase from $
225 million on June 30, 2014. The
increase was in large part due to the capitalized lease
on Guadalupe Hall, which now provides a facility for our
expanding graduate programs. As a result, debt as a
percentage of net assets increased to 16.7% in FY2015
from 15.6% in FY2014. (See Chart 10)
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TOTAL NET ASSETS
($ THOUSANDS)
NET PLANT ASSETS
($ THOUSANDS)
DEBT/NET ASSETS
Chart 8
Chart 9
Chart 10
20152006 2007 2008 2009 2010 2013 201420122011
$
0
$
200,000
$
400,000
$
600,000
$
800,000
$
1,000,000
$
1,200,000
$
1,400,000
20152006 2007 2008 2009 2010 2013 201420122011
$
0
$
100,000
$
200,000
$
300,000
$
400,000
$
500,000
$
600,000
$
700,000
20152006 2007 2008 2009 2010 2013 201420122011
0%
5%
10%
15%
20%
9. 9
Santa Clara University’s financial health continues
to be solid and strong. In August 2015, Moody’s
Investor Services concurred with this statement
by reaffirming the University’s Aa3 bond rating.
University leadership is committed to building on
these notable results in FY2016.