The Finance and Investment Offices oversee the financial
responsibilities of the College which include the
budget, financial planning, endowment management,
and stewardship of financial resources.
In fiscal year 2006-2007, the total expenditures were
$114.6 million. As of June 30, 2007 the endowment's
market value was $1.441 billion. Of private colleges and universities
our endowment per student ratio ranked 14th in the
country.
The following sections provide additional information
on frequently asked questions. To reach our staff…
The committee is reponsible for reviewing and
approving the five-year financial projection
and the annual operating and capital budgets
of the College. The committee works with the
Investment Committee to recommend the appropriate
spending guideline for the endowment. The committee
also relies on the Property Committee to recommend
the specific capital expenditures of the College
for facilities and technology.
Investment
Committee The Investment Committee
is a standing committee of the Board of Managers.
Its members have extensive investment experience. Current members are…
The
Committee is responsible for deciding the allocation
of the endowment among asset classes and various
investment management firms. The strategy is
to maintain a diversified asset allocation with equity-like returns, allocation, but with a small allocation to bonds
for protection in stock market downturns.
Endowment Objective
The endowment is to provide a sustainable level
of income distribution in support of the College's
annual operating budget while preserving the
real purchasing power of the endowment before
gifts.
Spending Policy
The distribution from the endowment is the largest
source of revenue for the College budget. Endowment
spending for the budget is expected to grow
over time at least as quickly as the annual
average increase in college costs, estimated
to be about 1.5% greater than the average annual
growth in the Consumer Price Index. Over the
long-term endowment spending, as a percent of
the endowment market value (i.e. spending rate),
is expected to average within the range of 3.75%
to 4.75%.
Debt
Management
The College utilizes tax-exempt debt as an
economically attractive way to finance capital
projects.
As of June 30, 2007, the College had $187.4
million in tax-exempt debt outstanding issued
through the Swarthmore Borough Authority.
Investor Responsibility
The Committee
on Investor Responsibility was created
in 1997 as an advisory committee to the Investment
Committee of the Board of Managers.
Its
primary responsibility is making recommendations
on voting shareholder resolutions in specific
areas of interest (e.g., environmental and labor
issues). See Voting Results from 2006 Proxy Season.
