2011 Annual Report - USNH Financial Services - University System ...

Education is the key to New Hampshire’s long-term welfare, economic prosperity, and quality of life. More thanever, the potential for each person to succeed—and to prosper—is determined by his or her ability to think, to reason, and toparticipate fully in all facets of life in a democratic society. Providing these critical educational programs and services throughteaching, research, and public service is at the heart of the mission of the University System of New Hampshire (USNH).The University System of New Hampshire is the state’s primary supplier of highly educated citizens and workers. The fourinstitutions of the University System—the University of New Hampshire, Plymouth State University, Keene State College, andGranite State College—annually enroll more than 31,000 students and graduate more than 6,000 students at the associate,bachelor, master, and doctoral levels. The institutions annually award more than half of the state’s bachelor’s degrees. In addition,approximately 77,000 alumni of University System institutions currently live in New Hampshire, contributing to their communitiesand the economy.FY11 HIGHLIGHTS(fiscal year ending June 30, 2011)• The institutions of USNH worked hard in FY11 to generate additional revenuesand save money where they could so that the reduced state revenues in FY12could be better managed. The $27.1 million FY11 net income before otherchanges in net assets represents 3.4 percent of operating revenues, right in linewith the USNH goal to generate a 3 percent to 5 percent operating margin on anannual basis.• Granite State College inaugurated its fourth president, Dr. Todd J. Leach, atthe Shepard-McAuliffe Discovery Center in Concord. Under his leadership,the college has begun launching a variety of exciting initiatives aimed atadvancing the College’s mission and fueling record growth including a oneyear40 percent increase in applications.• USNH’s three residential institutions are among only 311 institutions nationwidethat earned the Community Engagement Classification by The CarnegieFoundation for the Advancement of Teaching.• The USNH Board of Trustees approved a $970 million “all funds” operating budgetfor FY12 that included significant cuts across the entire system to address a verysubstantial $48.4 million reduction in state support. More than 80 percent of thestate funding cut will be offset through expense reductions, which reduces thedirect impact on the students. Cost of attendance (i.e., the full tuition, fees, roomand board “sticker price” for a typical on-campus student) increases for in-statestudents were held to between 8.7 and 9.7 percent at the residential campuses.• From Moody’s June 8, 2011 rating report: “Moody’s affirmation of USNH’sAa3 rating and stable outlook heavily incorporates our assessment of USNH’sgovernance and management ability to take swift steps to grow privaterevenue streams and contain expenses to balance the FY 2012 budget inresponse to anticipated steep cuts in state funding… Historically, the boardand senior management team’s market-oriented focus has been criticalin light of the System’s high reliance on out-of-state students and modestreliance on state appropriations. The System benefits from a strong financialmanagement team as demonstrated by multi-year operating surpluses.”Granite StateCollegeLebanonGranite StateCollegeClaremontKeene StateCollegeGranite StateCollegeLittletonPlymouth StateUniversityConcordGranite StateCollegeConcordGranite StateCollegeBerlinGranite StateCollegeConwayPlymouth StateUniversity Granite StateCollegeRochesterGraniteState CollegeManchesterUniversity ofNew HampshireManchesterGraniteState CollegePortsmouthUniversity ofNew HampshireDurhamThe 2011 Annual Report is a publication of the University System of New Hampshire. Prior year University System Annual Reports are available online at finadmin.usnh.eduThe cover of this report features Keene State College Commencement 2011 photos. Photography Credits: UNH Photo Services , PSU Office of Public Relations, Mark Corliss, Chris Justice, Michelle Kammerman, Ann Card, Julio DelSesto, and Michael MoorePage 10 photo courtesy Business New Hampshire MagazineThe front section of this report is printed on 80# Chorus Art gloss text (30% post consumer waste and FSC certified) and the back section is printed on 70# Astrolite PC 100 text (100% post consumer waste).University System of New Hampshire, Dunlap Center, 25 Concord Road, Durham, NH 03824, 603-862-0918