Official Release of the Audit for the Benedict College 2006 Fiscal Year

February 9, 2007

The College's current revenues exceeds its  meeting its current operating costs and Benedict expects to have a positive change in

Net Assets in the 2007 Fiscal Year

On February 9, 2007, the Benedict College Board of Trustees met and accepted the report of the College's external auditors and approved the audited financials for the College's 2006 fiscal year.  The College's reported results and the adjusted pro-forma results are shown in the table below.

Interim CFO Leonard Williams noted that in viewing the College's financial performance, it is critically important to separate significant non-cash, non-operating related, one time events.  Mr. Williams stated "During the 2006 fiscal year, the College took a number of steps to improve its' long-term performance that resulted in some one-time, fundamentally non-cash charges against earnings."

"Specifically, the College retired a bond issue that triggered a $1.0M charge, adjusted the accounting book value of certain receivables downward by $3.5M and replaced an institutional loan program with a new tuition assistance plan for students that caused a $1.6M change in recorded tuition and fees.  Absent these events, the College would have had a $1.2M change in Net Assets."

Benedict College President, Dr. David H. Swinton stated, "While taking these actions was painful from a reported earnings standpoint, they did not have any cash effect on the College.  Retiring the bond will serve to lower the College 's interest costs and the new tuition assistance plan will enable us to better support and assist our current students and give us a strong tool for helping to attract quality applicants in the future."

"Further, looking at the current 2007 fiscal year, we presently see the College's current revenues exceeding its  meeting its current operating costs and we expect to have a positive change in Net Assets in the current year from its current revenues."

Printable Version in PDF

Source: Office of Public Relations

Media Contacts:

Kymm Hunter, Director of Public Relations, 803-705-4519, 803-253-5132, hunterk@benedict.edu
Natalie Brown, Assistant Director of Public Relations, 803-705-4366, 803-540-2519, brown@benedict.edu

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